Board of Directors Meeting Agenda


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Meeting Date: 04/19/2018  

SUBJECT MATTER:
Receive, consider and act upon a Request for Proposals for Solid Waste and Recycling Consulting Services (C-2018-0233);
FISCAL IMPACT:
$5,002,418 is allocated in the 2018 Budget for contracted solid waste collection disposal and recycling services. $65,000 has been allocated for consulting services to assist with the negotiation of a renewal/extension of the current solid waste collection and recycling contract with Waste  Management and/or to develop the specifications for a Invitation for Bids/Request for Proposals and help with the evaluation of subsequent bids/proposals.
BACKGROUND:
The Solid Waste Services Budget provides funding for the collection and disposal of solid waste, yard waste, and recyclables for residential properties throughout the existing and future developing areas of The Woodlands Township and the operation of the Township's Recycling Center.
 
Residential waste collection and disposal services including recycling are provided by the Township throughout the community through contracted services with Waste Management of Texas, Inc. per the Refuse, Yard Waste, Recyclables, and Bulky Waste Collection, Disposal and Processing Services Contract (Attachment A).
 
The Initial Term of the current contract began on February 1, 2012 and ends on January 31, 2020.  The Agreement, provides that on or before 180 days preceding the expiration of the Initial Term, the Township may give written notice to the Contractor of its desire to renew the term of the Contract  ("Extension Notice") for an additional five years term up to two (2) such successive extensions of a minimum of one (1) year to a maximum of five (5) years extensions (the Renewal Term).  If the Township delivers a Extension Notice, the Contractor shall, within thirty (30) days accept or reject the renewal.  In the event Waste Management rejects the renewal, then the Contract shall expire on the expiration date.  
 
The current contract provides – (began February 1, 2012 at a per unit rate of $10.10 and through CPI increases is currently at $10.46)
  • Once per week fully automated curbside trash collection utilizing a 96-gallon cart.
  • Once per week fully automated curbside collection of recyclables utilizing a 96-gallon cart.
  • Once per week manual collection of yard waste through compostable bags, bundles or resident provided containers.
  • Operation and maintenance of the Recycling Drop-off Center.
  • Solid Waste collection for apartments in The Woodlands with an option for recycling services.
 
Over 34,600 residential units receive solid waste collection services provided by the Township. Growth projections for 2018 include about 140 additional residential units to be serviced by the Township for new homes.
 
As contracting for waste removal and recycling services or negotiating an extension of the current contract is a complex task, it is recommended to contract for Solid Waste and Recycling Consulting Services to (A): negotiate an extension with Waste Management; or (B) develop a Invitation to Bid / Request for Proposals for a competitive solicitation process; or (C) perform services for both A & B in which a consultant provides extension negotiation services and if the terms of an extension is not acceptable by the Board of Directors, the consultant proceeds with developing the specifications for a Invitation for Bids.   The Woodlands Township used professional consulting services in 2010 when preparing specifications and standards for the Invitation for Bids that lead to the new contract  awarded to Waste Management. 

A draft Request for Proposals (RFP) for Consulting Services has been prepared (Attachment B,).  The Scope of Services includes but is not limited to: evaluating the  market, new vendors in a marketplace, potential new services and delivery methods, separating collection services from processing services, commodity pricing, fuel pricing, etc. Initial estimates for solid waste consulting services is $65,000 which has been developed from discussions with currently known solid waste consultants.

Waste Management of Texas, Inc. has provided the Township and its residents  a high satisfaction level of waste collection and recycling services. for over twenty years   The Board of Directors recognized the company for its outstanding supplemental debris removal services during Hurricane Harvey.  Evaluation of the current per unit cost of service ( $10.46) is below market value and the unit prices other communities are paying for similar services.  Therefore it may be beneficial to negotiate an extension of the current contract. 

However, it should also be noted that there are other solid waste firms in the area who have expressed interest in providing services to the community, including national firms who are headquartered  in The Woodlands.  Therefore, it is recommended to proceed with securing waste consulting services based on a scope of services to develop specifications for a Invitation to Bid process.

The following schedule has been developed based on bidding waste collection and recycling services:
  • April 19, 2018- Board approves release of RFP for Waste  Consulting Services & the related schedule
  • June 29, 2018- RFP’s for solid waste consulting services due
  • July 2018- Board considers  award of RFP for solid waste consulting services
  • January 1, 2019- Board reviews draft Invitation to Bid and specifications/services and service levels to be provided in new Contract - approves release of IFB
  • June 1, 2019- Board reviews bids received, award bids and authorizes contract development
  • August 2019- Board reviews and approves new solid waste contract
  • September - January 31, 2020- new contractor, if applicable, implements transition of services; or existing contractor prepares for new contract
  • February 1, 2020 - new contract begins
 Included in this schedule is additional time if the Board desires for additional public input, additional time for contract review, or additional time for standards review.
RECOMMENDATION:
It is recommended to approve the release of a Request for Proposals for Solid Waste and Recycling Consulting Services as presented herein and return to the Board with submitted proposals for consideration in June. 
Attachments
Attachment A - Waste Management Contract
Attachment B - RFP Solid Waste Consulting Services


    

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