AgdaPkt 2007-09-10 - Laserfiche WebLink

Browse Search

8A communities currently use a stric# cost-plus compensation methodology for solid Page 5 waste collection and recyciing services that is currently used in set#ing collection rates for solid waste collectian subscrib�rs in the SBWMA service area. The proposed compensation process eliminates detailed annual rate reviews so that contractor's compensation will never be "trued up" to contractor's actual costs (with the �xcep��or af an anrual cost reconci{iati�n ralated to actual tanrar�e callecte� an� actual disposal and processing costs}. Elimination of the detailed annual rate review wilE dramaticaEly reduce cansultant expenses for this activity beginning in 201'f, Also, this fixed price model should result in far greater rate stability and predictability compared to the current cost-plus approach. 7. Requiring all proposers to use the same operationa( assumptions for key items such as residential cart sizes, use of new callection vehicles for core services, and use of new cammercia! cof�ectian containers whan preparing their proposals. These assumptions are for the p;.�rposes of obtaining comparable cost proposals from proposers. Member agencies still retain the right to establish cart sizes for residents, use of used equipment, efc. as part of the finai negotiated scope of services and costs with their selected contractor. 8. The term of collection agreement initially was recommended as a seven-year term, but has now been changed to a 10-year agreement term. This madification has been made to �reflect a more starsdard amortization schedule for the primary equipment used to provide collection services. In addition, based on the fixed-price compensation methodology and no rteed for an annuai rate review, a longer contract term provides member agencies with a longer time frame for rate stability and defers for a longer period of time the next procurement or negofiation cycie. 9. Adjusted the "Acceptable Materials" {ist for the curbside recycling collection program to exclude some small scrap metal types that pose a problem to sorting equipment (i.e., small appiiances, hand tools, automo#ive parts, chain, wire, and banding). Summary of Changes to the SRDC Operations RFP The key changes to the original SBWMA recommenda�ions for SRDC operations relate to the follawing areas: 1. Similar changes as in the collection RFP ta simplify the compensation (see i#em #6 above) methodology. 2. �imilar change as in the collection RFP to change the #eri�� iror�i s�ven years to 10 years (see item #8 above). 3. Contractor will oversea MRF processing equipment instal(ation and startup prior to the expiration of the existing operating agreement. 4. All proposers are required to bid new equipment fflr rolling stock and transfer vehicles for the purposes of preparing cost proposals. SBWMA may later negotiate with the selected contractor for the use of some used equipment. The Council should be aware that the final collection RFP and agreemerit wiEl evolve through the pracurement process as proposers raise questions and the SBWMA issues RFP adclenda, as contract negotiations take place with the selected contractor, and fihe final agreements are approved. Ultimately, each member agency wi(I approve its finai callectian agreement with the selected contrac#or. 5