TO: Napa-Vallejo Waste Management Authority Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Agreement with R3 Consulting for Assistance with DRTS Operations Contract
RECOMMENDATION
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REQUESTED ACTION: Approval and authorization for the Chair to sign Agreement 2024-03 with R3 Consulting Group, Inc. in an amount not to exceed $110,000, effective September 14, 2023, for assistance with a new or extended contract for operation of the Devlin Road Transfer Station (DRTS).
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EXECUTIVE SUMMARY
Northern Recycling Operations and Waste Services, LLC (NROWS) has requested consideration of a contract extension. Staff recommends hiring R3 Consulting Group, Inc. to aid the Authority in reviewing the scope of services provided by NROWS and determining whether negotiating a long-term extension is in the best interest of the Authority. R3 Consulting Group, Inc. has extensive experience conducting solid waste contract reviews and negotiations for public agencies and recently completed a review of DRTS Operation and Cost Increases. They are very familiar with solid waste practices in the NVWMA service area and are well-qualified to conduct negotiations and review for the Authority.
For $50,000, R3 will review the NROWS contract and the operational needs of DRTS, and help staff negotiate a long-term extension with NROWS if its determined to be in the best interest of the Authority. If negotiating a long-term extension with NROWS is not feasible or not in the best interest of the Authority, for an additional $60,000 R3 will assist staff in issuing a Request for Proposals (RFP) for the operation of DRTS and help negotiate a new contract with the winner of the RFP process.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Operating Expenses - Devlin Road Transfer Station |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
R3 Consulting Group has the expertise staff needs to review and potentially negotiate a long-term extension with NROWS to operate the DRTS, or to prepare a Request for Proposals for such services. |
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Consequences if not approved: |
Authority staff will proceed to review and potentially negotiate a long-term extension without the expertise of R3 Consulting Group. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
In 2007, the Napa-Vallejo Waste Management Authority entered into a 15-year agreement with Northern Recycling Operations and Waste Services, LLC (NROWS) to operate the Devlin Road Transfer Station. The contract with NROWS would have expired on December 31, 2022, but the Authority has been exercising options to renew the agreement in 1-year increments. The contract with NROWS is currently scheduled to expire on December 31, 2024. NROWS has requested consideration of a long-term contract extension.
Staff recommends contracting with R3 Consulting Group, Inc. (R3) to aid the Authority in reviewing the scope of services provided by NROWS and determining whether negotiating a long-term extension is in the best interest of the Authority. R3 has extensive experience conducting solid waste contract reviews for public agencies and recently completed (June 2022) a review of DRTS Operation and Cost Increases. Further, R3 completed a similar review of the Upper Valley Waste Management franchise agreement for Napa County. R3 is very familiar with solid waste practices in the NVWMA service area and are well-qualified to conduct a review for the Authority.
The scope of services of the proposed contract with R3 is divided into two parts. For $50,000, the first part involves reviewing the NROWS contract and the operational needs of DRTS and negotiating a long-term extension with NROWS if it is determined to be in the best interest of the Authority. If negotiating a long-term extension with NROWS is not feasible or not in the best interest of the Authority, for an additional $60,000 R3 will assist staff in issuing a Request for Proposals for the operation of DRTS and help negotiate a new contract with the winner of the RFP process.