City Council

(6) 24­0340 PUBLIC WORKS COMMITTEE REPORT relative to a contract with Southern California Disposal Co., Inc., for the processing of waste from the West Los Angeles Wasteshed. Recommendation for Council action: AUTHORIZE the Board of Public Works (BPW), or two members of the BPW, on behalf of the Bureau of Sanitation (BOS), to execute the proposed Sole Source Personal Services Contract with Southern California Disposal Co., Inc., to provide transfer, transport, and disposal services of solid waste and other items generated in the West Los Angeles Wasteshed, and collected by the City, to City–designated facilities for final disposal or beneficial reuse. The proposed contract has a five­year initial term, with two five­year renewal options to be exercised at the City’s sole discretion, and allowances for the General Manager to modify the contract as necessary to meet the BOS’ operational transfer and disposal needs, over a total potential term of 15 years. The contract has been previously approved by the BPW. Fiscal Impact Statement: The City Administrative Officer (CAO) reports that there is no additional impact to the General Fund. Funding is provided in the Sanitation Expense and Equipment Account for tip fees in the Solid Waste Resources Revenue Fund, Fund No. 508, which is not a full cost recovery fund. The financial impact of the partial year contract is Friday approximately-$650,000 April 26, 2024 - assuming PAGE 11 the contract is executed by May 1, 2024. The estimated cost for the first five­year contract is $21,600,564; modify the contract as necessary to meet the BOS’ operational transfer and disposal needs, over a total potential term of 15 years. The contract has been previously approved by the BPW. Fiscal Impact Statement: The City Administrative Officer (CAO) reports that there is no additional impact to the General Fund. Funding is provided in the Sanitation Expense and Equipment Account for tip fees in the Solid Waste Resources Revenue Fund, Fund No. 508, which is not a full cost recovery fund. The financial impact of the partial year contract is approximately $650,000 assuming the contract is executed by May 1, 2024. The estimated cost for the first five­year contract is $21,600,564; $50,434,605 for the ten­year period; and, an estimated $88,948,669 for the full 15 years. The Agreement includes Standard Provisions which contain a City obligation limitation clause which limits the City’s obligation to make payments to funds which have been appropriated for this purpose. Financial Policies Statement: T h e C A O r e p o r t s t h a t t h e a b o v e recommendation complies with the City’s financial policies in that the City’s financial obligation is limited to funds budgeted for this purpose and future expenditures are limited to appropriation of funds in the budget.