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THE CITY OF <br />fiw�� <br />� L <br />n m <br />PLEASANTON. CITY COUNCIL AGENDA REPORT <br />September 16, 2013 <br />City Manager <br />TITLE: APPROVAL OF THE ASSIGNMENT OF THE PROFESSIONAL <br />SERVICE AGREEMENT WITH THE NEWPOINT GROUP, INC. TO <br />CROWE HORWATH, LLP AND ADDITIONAL SERVICES TO <br />CONDUCT A REFUSE AND RECYCLING COLLECTION RATE <br />STUDY <br />SUMMARY <br />The City maintains a refuse collection franchise agreement (Franchise) with <br />Pleasanton Garbage Service (PGS) to provide refuse and recycling collection <br />and processing services throughout the City. PGS has submitted an application <br />for a rate adjustment effective January 1, 2014. The last rate adjustment <br />occurred in November 2012. As part of the previous rate review, staff utilized the <br />services of the NewPoint Group, Inc. (NewPoint) and was satisfied with its <br />services. Since that time, the City approved Amendment #1 with NewPoint to <br />provide technical assistance regarding potential amendments to the existing <br />Franchise and this work is currently in progress. Recently, all NewPoint Group <br />employees became employed by Crowe Horwath LLP (Crowe) and as result, any <br />contract amendment requires an assignment from NewPoint to Crowe. <br />Considering the involvement of NewPoint's (now Crowe's) principal staff with the <br />City's refuse and recycling issues, staff is recommending it be retained for review <br />of the current rate application. <br />RECOMMENDATION <br />1. Approve the Second Amendment to Professional Services Agreement with the <br />NewPoint Group, Inc. which includes the following: <br />• An assignment of the Agreement from NewPoint Group, Inc to Crowe <br />Horwath, LLP <br />• A review of the PGS services rate application for fee of $34,700 <br />• An adjustment to the fees required for Amendment One by $10,000 (from <br />the current $20,000 to $30,000) <br />2. Authorize a project $5,300 (15 %) contingency to meet unforeseen costs <br />related to the Second Amendment for a maximum contract amount of <br />$40,000. <br />3. Authorize funding from contingency in the amount of $50,000 <br />FINANCIAL STATEMENT <br />The full cost of this work will be paid for initially with funding from the General <br />Fund Contingency in the amount of $50,000. Ultimately all costs associated with <br />the refuse and recycling collection rate study will be factored into the PGS rate <br />structure and reimbursed to the City by PGS. <br />Page 1 of 3 <br />