Board of Directors Meeting Agenda


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Meeting Date: 07/25/2018  

SUBJECT MATTER:
Receive, consider and act upon a Request for Proposals for Solid Waste and Recycling Consulting Services (C-2018-0233); 
FISCAL IMPACT:
$65,000 is allocated in the 2018 Environmental Services Budget 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 an Invitation for Bids/Request for Proposals and help with the evaluation of subsequent bids/proposals. $5,002,418 is allocated in the 2018 Budget for contracted solid waste collection and disposal and recycling services. 
 
BACKGROUND:
At the April 19, 2018, Board of Directors meeting, the Board received information regarding the contract for solid waste collection disposal and recycling services which are provided through contracted services with Waste Management of Texas, Inc. 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 year 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 an Extension Notice, the Contractor shall, within thirty (30) days accept or reject the renewal.  In the event a renewal cannot be agreed, the Contract shall expire on the expiration date. 

Subsequently, the Board authorized the release of a Request for Proposals (RFP) for Solid Waste and Recycling Consulting Services and for staff to return to the Board with submitted proposals for consideration (Attachment A).  The Board has several Options to consider including not to select a Consultant and authorizing the President/General Manager to issue an Extension Notice to Waste Management and return with their response after the 30 day notice period.  Other options as per the direction of the Request for Proposals are: 

Option 1: The Board may have the Consultant work with Township staff (and/or appoint a Board Committee) to negotiate  a renewed service agreement with Waste Management. If negotiations result in satisfactory changes and terms for services, then The Township could move forward with an extended contract with Waste Management. 
 
Option 2:  The Consultant will draft specifications and Invitation for Bids (IFB) for residential waste collection and disposal services (single family and multi-family), provide bidding assistance, evaluate bids, present bid and recommendation to the Board, and negotiate the new contract.

The schedule proposed for the renewal and/or bidding process is:
  • Board selects Consultant July 2018
  • Consultant conducts renewal negotiations with Waste Management - August 2018
  • Board considers renewal terms of current contract September 2018
  • Board considers draft documents/specifications for release of an IFB for new contract - November 2018
  • Bids due April 2019
  • Board considers Award of Bid -  June 2019
The RFP for professional consulting services was advertised on The Woodlands Township Website and in The Woodlands Villager on May 2, 2018 and direct mailed to several known professional consulting firms.  RFP's were June 29, 2018, and six (6) vendors submitted proposals (Attachment B).   A Synopsis of each of the Firms has been prepared (Attachment C). 

An Evaluation Team of Township staff reviewed and scored the proposals based on the following criteria approved by the Board of Directors:
  • Fees                               40%
  • Prior Experience          25%
  • Project Approach        20%
  • Project Team               10%
  • References                     5%

A Scoring Matrix was complied (Attachment D) which is summarized in the table below with the fees proposed by each firm:
 
 Firm Avg Weighted Score Option 1 Option 2 Option 1+2
SWS 3.08 $17,428 $39,740 $49,084*
NewGen Strategies and Solutions 3.02 $18,630 $49,140 $67,770
Burns McDonnell 2.99 $26,500 $51,000 $77,750
Gershner, Brickman & Bratton, Inc 2.64 $20,995 $50,150 $64,680*
HARC 2.14 $15,000 $55,000 $60,000*
Saving on Waste 1.63 $175,000 $175,000 $350,000
 
*Note: Vendor is providing a cost reduction when selecting Option 1 & Option 2

Recognizing that any proposal scoring a 3.0 or higher is considered an “Acceptable” proposal, two (2) of the six (6) proposals scored higher than the 3.0. In a review of the two (2) proposals which scored above  3.0, SWS has both the highest combined score, the lowest price and the only vendor within the allocated budget.  Reference checks were performed on the three (3) highest scoring proposers – SWS, NewGen and Burns & McDonnell. All references were satisfactory.  

On June 14, 2018, Waste Management submitted a Contract Renewal Negotiation Request (Attachment E). The proposal indicates Waste Management welcomes the opportunity to renew the Agreement.  Waste Management has provided the services for the last 22 years and considers itself an extension of the Township's service infrastructure. The request indicates that the economic realities involved with the current contract necessitate an update in the rates and potentially some of the terms and conditions for Waste Management to justify a long-term renewal.   Waste Management would like to enter into a 30-day discussion period with the Township for the potential renewal of the contract. 

The Board may consider issuing an Extension Notice to Waste Management and authorize the Consultant to negotiate terms for a renewal and return to the Board with a recommendation. The Board will have the option at that time to agree to the renewal terms or move forward with a competitive bidding process.  The Consultant would then prepare the bidding documents and specifications and present for Board approval.  

Due to the potential for a new company to be selected to provide waste collection and recycling services, it is recommended to schedule an award of bid for a new contract no later than June/July of 2019. The lead time for a new company to prepare to provide services on February 1, 2020 may require at least six months. 
RECOMMENDATION:
Accept the proposal submitted by SWS for Options 1 & 2 Services and authorize the President/General Manager to execute a professional services agreement as approved to final form by the Township Attorney. 
 
Attachments
Attachment A - RFP Consulting Services Solid Waste Removal Services
Attachment C - Synopsis of Firm Submitting Proposals Waste Collection Consulting Services
Attachment D - Scoring Matrix Waste Collection Consulting Services RFPs
Attachment E - Waste Management Request for Renewal Discussions


    

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