ADOPTED BUDGET RESOURCE ALLOCATION PLAN - City of ...

Project: 821170 SMaRT Station Operations Contract RFP
Origination Year: 1999-00
Planned Completion Year: Ongoing
Department: Public Works
Project Description / Scope / Purpose
Project Information Sheet
Type: Solid Waste
Category: Special
Project Manager: Mark Bowers
Fund: 490 SMaRT Station
Sub-Fund: 100 SMaRT Station Operating
Project Coordinator: Gail Bentley
This project funds development, issuance, and evaluation of a Request for Proposals (RFP) to operate the City's Sunnyvale Materials Recovery and Transfer (SMaRT) Station. Selection of an
operator for the contract beginning in January 2008 was made in FY 2006/07. The selection process had a total cost of $134,090 during FY 2005/06 and 2006/07. The contract term is for seven
years of operation at a total cost of $70-80 million. The proposed budget assumes that there will be another RFP process beginning in FY 2012/13 and every seven years thereafter in advance of the
expiration of the then existing contract. The SMaRT Station Operations Fund will be reimbursed for the full cost of the project by Sunnyvale, Palo Alto, and Mountain View, based on their
proportions of solid waste delivered to the SMaRT Station in the year the expenditures occur. A separate project, 821181, "Contribution to SMaRT Station Operations Contract RFP", reflects
Sunnyvale's contribution to this fund.
Project Evaluation and Analysis
In lieu of a competitive process, an extension could be negotiated with the incumbent contractor. However, analysis of previous extension proposals has shown that pricing and/or terms have not
been favorable to the City when compared to funding this project and conducting a competitive procurement. Benefits of competitive procurement include an unfettered opportunity to modify the
contract terms in response to changes in law, technology, and market conditions. Business and operational project impacts include refuse collection, transfer and disposal, recyclable materials
collection, processing and marketing, and the equivalent services that the City provides to Mountain View and Palo Alto per the SMaRT MOU. If this project is not funded, the City will not be able
to pay for a competitive procurement for the operations contract.
Fiscal Impact
The SMaRT Station Operations Fund will be reimbursed for the full cost of the project by Sunnyvale, Palo Alto and Mountain View, based on their proportions of solid waste delivered to the
SMaRT Station in the year the expenditures occur. A separate project, 821181, funds Sunnyvale's contribution to the cost of this project. The proposed budget is based on the expenditure history of
the most recent RFP. There is no operating cost resulting from an RFP itself, although operating savings are likely to result from use of a competitive process as compared to sole source
procurement or a contract extension. For purposes of budgeting, Palo Alto (or another city replacing Palo Alto) is assumed to continue in its current role throughout the 20-year plan.
Project Financial Summary
Financial Data Prior
Actual
Project Costs
Revenues
Total
Transfers-In
Total
Operating Costs
Current 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Y11-Y20
2009-10
Total
Project
Life Total
239,866 0 0 0 168,859 0 0 0 0 0 0 197,788 243,255 849,768
SMaRT Operations Cost Reimb Mountain View 0 0 50,067 0 0 0 0 0 0 58,644 72,125
SMaRT Operations Cost Reimb Palo Alto 0 0 39,006 0 0 0 0 0 0 45,689 56,192
SMaRT Operations Cost Reimb Sunnyvale 0 0 79,786 0 0 0 0 0 0 93,455 114,938
261,836 0 0 0 168,859 0 0 0 0 0 0 197,788 243,255 871,738
0 0 0 0 0 0 0 0 0 0 0 0
0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0
SMaRT Station Operations Contract RFP 821170