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Home My WebLink About12-09-19 City Commission Packet Materials - C7. First Amendment to the PSA with Burn and McDonnel for Solid Waste Rate Study Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: First Amendment Professional Services Agreement Solid Waste Rate Study MEETING DATE: December 9, 2019 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign the First Amendment Professional Services Agreement with Burn & McDonnel for rate study of the Solid Waste operations. BACKGROUND: The Commission gave direction at the November 18, 2019 meeting to bring back more information regarding recycling and composting. This amendment includes the services requested as part of the rate study work. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the Commission FISCAL EFFECTS: This increases the study’s costs to the Solid Waste fund by $40,900. Attachment: First Amendment to PSA Report compiled on: November 20, 2019 99 First Amendment to Professional Services Agreement for solid waste cost of service and rate design FY 2020 Page 1 of 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR solid waste cost of service and rate study dated March 11, 2019 (the “Agreement”) is made and entered into this 9th day of December, 2019, by and between the CITY OF BOZEMAN, MONTANA, a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” Burn & McDonnel LLC, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1. Extension of Term. Section 4 of the Agreement is extended and will terminate upon completion of the work included in the Scope of Services of Exhibit A. 2. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 100 First Amendment to Professional Services Agreement for solid waste cost of service and rate design FY 2020 Page 2 of 2 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA Burns & McDonnell Engineering Company, Inc By________________________________ By_____________________________ Andrea Surratt, City Manager Print Name: Title: APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 101 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 1 CITY OF BOZEMAN: CITY-WIDE RECYCLING AND PILOT ORGANICS COLLECTION FEASIBILITY STUDY This proposal is for Burns & McDonnell to assist the City of Bozeman (City) to assess the feasibility of providing curbside recycling collection City-wide and initiating a pilot automated organics collection program. Burns & McDonnell recently completed a cost of service and rate design study for the City, and the City has requested continued assistance in determining the financial and operational impact of expanding services. We have organized this scope of services by describing four phases to the Scope of Work and to include: (1) Project Initiation and Management; (2) Feasibility of City-wide Recycling; (3) Feasibility of Automated Organics Collection; (4) Report Preparation and Presentation. This proposal includes our scope of work, fee and detailed schedule. SCOPE OF WORK Phase 1 Project Initiation & Management TASK 1A: INITIAL DATA REQUEST & REVIEW Following receipt of the Notice to Proceed, Burns & McDonnell will provide the City with a detailed preliminary data request that will encompass data needs for completing the study. The data request will itemize our needs for understanding the operational, contractual and financial considerations that must be addressed. This task also includes organization and preliminary analysis of all data received. We recognize that the City may not be able to, or already have provided certain items for this effort as part of the previous study. In these cases we will work with the appointed project manager to request updated information or determine reasonable substitutes for the key data, if needed. TASK 1B: ESTABLISH A PROJECT TASK FORCE As part of the previous cost of service and rate design study, the City established a Project Task Force (PTF) to participate throughout the process. Burns & McDonnell recommends that this same group, or sub-group participate in the kick-off meeting, help facilitate data collection, provide feedback on preliminary findings, and provide support to our project team throughout the project. TASK 1C: KICK-OFF CONFERENCE CALL MEETING & PROJECT MANAGEMENT Prior to commencing the study, members of the project team will conduct a kick-off conference call with key City staff. During this kick-off conference call, we will discuss the project work plan, key issues to be addressed, key findings from previous engagements as well as confirm the timing associated with the various project tasks. We will discuss our initial data request that we will have provided to the City staff 7 to 14 days prior to the kick-off meeting. Burns & McDonnell will provide the agenda and any handout materials at least two days in advance. During the meeting, we will also identify primary contacts for our project team and the City and establish protocol for the exchange of information and the resolution of issues that arise in the normal course of this engagement. To facilitate effective communication between project team members and the City throughout the course of this project, Burns & McDonnell will: ► Schedule and participate in periodic conference calls as needed to discuss project matters ► Provide periodic status updates via electronic format ► Be available for other communication(s) as needed 102 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 2 Establish Criteria to Determine Feasibility. During the meeting, we will facilitate a discussion focused on assisting the PTF to establish a set of criteria determining program feasibility for an expansion of recycling City-wide and a pilot automated organics collection program. PHASE 1 DELIVERABLES ► Preliminary data request ► Electronic copies of the kick-off meeting agenda, handouts, and follow-up summary ► Participation of Burns & McDonnell project manager and key staff in kick-off conference call and other requested meetings Phase 2: Feasibility of City-wide Recycling A feasibility study provides a clear understanding of the proposed operation’s cost of providing service. Burns & McDonnell will leverage previous work evaluating the cost of service and solid waste rates to determine the financial impact of the proposed expansion of the City’s recycling operations and how the economics of the recycling program would become more competitive by implementing the service on a City-wide basis. TASK 2A: EVALUATE POTENTIAL COSTS OF CITY-WIDE RECYCLING PROGRAM Burns & McDonnell will evaluate the operational and financial requirements for the City to expand its recycling on a City- wide basis. The City currently provides a subscription residential recycling program to about 40 percent of residents living in single-family homes. The City is interested in understanding the feasibility of expanding recycling services from the current subscription program (i.e. customers request services for an additional fee) to a City-wide program (i.e. all customers receive services and the fee is included in base services fee), collected every other week. If recycling is expanded on a City-wide basis, the effectiveness of the program will depend on the ability for the City to capture efficiencies associated with these increased economies of scale (e.g. routing efficiencies, cart costs). Burns & McDonnell will develop a model that estimates the costs of an expanded recycling program including, but not limited to, the following: ► Additional routes, collection vehicles and equipment ► Wages and benefits for new personnel ► Additional carts ► Cart maintenance ► Education and outreach ► Additional processing fees ► Avoided landfill costs The model will assess the cost of implementing City-wide recycling collection based on high and low resident participation. The model will also reference the cost of service and rate design model developed as part of the previous effort to determine the feasibility of the expanded program as described in Task 2B. TASK 2B: SUMMARY ANALYSIS Burns & McDonnell will compare updated costs against the current system and provide key findings and recommendations regarding program requirements (e.g. participation rate, minimum rate increase) that support a technically and financially feasible program. PHASE 2 DELIVERABLES ► Cost projections for City-wide residential recycling 103 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 3 ► Conference call to discuss findings Phase 3 : Feasibility of Automated Organics Collection A feasibility study provides a clear understanding of the proposed operation’s cost of providing service. Burns & McDonnell will leverage the previous work to evaluate the cost of service and solid waste rates to determine the financial impacts of the proposed development of a pilot year-round automated organics collection program. This analysis will show how the economics of the organics collection are impacted by participation rate, seasonality, and other key program performance metrics. TASK 3A: ORGANICS COLLECTION BENCHMARKING Burns & McDonnell will provide benchmarking of comparable municipalities that have implemented organics collection pilot programs. Burns & McDonnell has previously performed feasibility studies for municipalities expanding collection services to include organics, and as a result has first-hand knowledge of how other communities have planned and implemented organics collection programs. Burns & McDonnell will benchmark up to four cities to get insight on metrics for their organics programs. A potential list of benchmarking cities follows: ► Denver, CO ► Fort Collins, CO ► Austin, TX ► Madison, WI From these benchmark cities, Burns & McDonnell will request the following information; however, not all cities track this information and may not be able to provide a response for each request: ► Program structure (i.e. mandatory or subscription) ► Types of collection vehicles used ► Participation rate ► Service charge ► Contamination levels ► Processing costs ► Seasonality ► Program roll out schedule Burns & McDonnell will compile information gathered during the benchmarking effort into a comparative matrix and incorporate it into the draft report section. Burns & McDonnell will review the benchmarking section with the City to discuss the successes and roadblocks other Cities have encountered in establishing an organics collection program to support the potential costs as described further in Task 3B. TASK 3B: EVALUATE POTENTIAL COSTS OF AUTOMATED ORGANICS COLLECTION PROGRAM The City currently provides residents with seasonal yard waste collection via rear-load collection vehicles and is interested in assessing the feasibility of a pilot program for organics collection year-round via automated side-load collection vehicles. This analysis will consider the costs based on the variable key program metrics such as participation rate, seasonality, and contractor processing costs. Burns & McDonnell will develop a model that estimates the costs of an expanded recycling program including, but not limited to, the following: 104 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 4 ► Additional routes, collection vehicles and equipment ► Wages and benefits for new personnel ► Carts ► Cart maintenance ► Education and outreach ► Additional processing fees ► Avoided landfill costs Burns & McDonnell will work with the City to establish key assumptions including: ► Accepted materials (e.g. food and yard waste) ► Participation rate ► Potential route efficiencies ► Contracted processing costs ► Seasonality (e.g. scaling back collections during winter months) These assumptions will provide the basis for the cost of a year-round program. We will also work with the City to determine assumptions for a multi-family residential drop-off program. The model will assess the cost of implementing the automated organics collection program based on three resident participation scenarios. The model will reference the cost of service and rate design model developed as part of the previous effort to determine the feasibility of the expanded program as described in Task 3B. TASK 3B: SUMMARY ANALYSIS Burns & McDonnell will compare updated costs against the current system and provide key findings and recommendations regarding program requirements (e.g. participation rate, minimum rate increase) that support a technically and financially feasible program. PHASE 3 DELIVERABLES ► Cost projections for City-wide residential recycling ► Conference call to discuss findings Phase 4: Report Preparation and Presentation TASK 4A: DRAFT REPORT Upon completion of the analyses outlined above, Burns & McDonnell will develop a Draft Report outlining recommendations and conclusions in a clear and concise manner. The report will include detailed recommendations regarding the technical and operational feasibility of implementing City-wide recycling and year-round organics collection . Burns & McDonnell is committed to making sure the City thoroughly understands the recommendations in the Draft Report. Burns & McDonnell will provide the findings to the City staff and allow these individuals sufficient time to have their concerns and/or questions addressed. Burns & McDonnell will have a conference call with City staff to discuss the report. Burns & McDonnell will request that written comments be provided as one submittal from City staff to facilitate consensus regarding staff comments. TASK 4B: FINAL REPORT Upon receipt of City staff recommendations and comments, Burns & McDonnell will make appropriate changes and provide the City with a Final Report. We will issue the Final Report within three weeks of receiving comments from the City. 105 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 5 TASK 4C: DEVELOP POWERPOINT AND PRESENT TO CITY COMMISSION MEETING Burns & McDonnell will develop a PowerPoint presentation that summarizes the key findings of the study. Burns & McDonnell will attend and present findings and recommendations from the report at a City Commission meeting or workshop. Burns & McDonnell will support the presentation of results and recommendations of the study. One PowerPoint presentation and handouts will be developed for use by the City to communicate the analysis, key findings and rate recommendations. PHASE 4 DELIVERABLES ► Electronic version of the Draft Report ► One conference call to discuss the Draft Report ► Printed and electronic version of the Final Report ► PowerPoint presentation ► Participation in City Council Meeting or workshop 106 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 6 FEE The following table provides an outline of the services to be provided and includes the fee, inclusive of professional fees and out-of-pocket expenses. Services for Phases 1, 2, 3 and 4 will be invoiced on a percent complete basis. Task Fee Phase 1: Project Initiation & Management TASK 1A: INITIAL DATA REQUEST & REVIEW $1,400 TASK 1B: ESTABLISH A PROJECT TASK FORCE $0 TASK 1C: KICK-OFF MEETING & PROJECT MANAGEMENT $1,900 Phase 2: Feasibility of City-wide Recycling TASK 2A: EVALUATE POTENTIAL COSTS OF CITY-WIDE RECYCLING PROGRAM $7,700 TASK 2B: SUMMARY ANALYSIS $3,800 Phase 3: Feasibility of Automated Organics Collection TASK 3A: ORGANICS COLLECTION BENCHMARKING $3,000 TASK 3B: EVALUATE POTENTIAL COSTS OF AUTOMATED ORGANICS COLLECTION PROGRAM $7,700 TASK 3C: SUMMARY ANALYSIS $3,300 Phase 4: Report Preparation and Presentation TASK 4A: DRAFT REPORT $7,000 TASK 4B: FINAL REPORT $1,000 TASK 4C: DEVELOP POWERPOINT AND CONDUCT CITY COMMISSION MEETING $4,100 Total $40,900 107 City of Bozeman: City-wide Recycling and Pilot Organics Collection Feasibility Study 7 SCHEDULE The following table provides an outline of the timing for the services, based on the assumption that we receive a Notice to Proceed no later than December 10, 2019. Task Schedule Phase 1: Project Initiation & Management TASK 1A: INITIAL DATA REQUEST & REVIEW December 2019 –January 2020 TASK 1B: ESTABLISH A PROJECT TASK FORCE December 2019 – January 2020 TASK 1C: KICK-OFF MEETING & PROJECT MANAGEMENT January 2020 Phase 2: Feasibility of City-wide Recycling TASK 2A: EVALUATE POTENTIAL COSTS OF CITY-WIDE RECYCLING PROGRAM February 2020 TASK 2B: SUMMARY ANALYSIS February 2020 Phase 3: Feasibility of Automated Organics Collection TASK 3A: ORGANICS COLLECTION BENCHMARKING February 2020 TASK 3B: EVALUATE POTENTIAL COSTS OF AUTOMATED ORGANICS COLLECTION PROGRAM February 2020 TASK 3C: SUMMARY ANALYSIS March 2020 Phase 4: Report Preparation and Presentation TASK 4A: DRAFT REPORT March 2020 TASK 4B: FINAL REPORT April 2020 TASK 4C: DEVELOP POWERPOINT AND CONDUCT CITY COMMISSION MEETING March 2020 108