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Committee delays vote on $8 million Recology contract increase, seeks accounting clarity
Summary
Committee continued consideration of an $8 million increase to the city’s refuse collection MOU with Recology after extensive questioning about rate adjustments, 65 added service locations and $1.2 million in trapped encumbrances in the PeopleSoft purchase‑order system.
The committee declined to forward to the board an amendment that would increase the refuse collection agreement with Recology by $8,000,000 (from $40 million to $48 million), instead voting to continue the item to the next meeting for further information.
Daniel Sanchez of the Office of Contract Administration said the increase is intended to cover rate adjustments laid out in the contract, cost of living adjustments, distance/access/elevation charges, and new service locations added since 2014 that were not included in earlier estimates. He said the $8 million estimate was based on recent monthly averages multiplied to bridge the gap until a new contract is scheduled to begin July 1, 2020.
Committee members and Controller’s Office staff pressed on an accounting issue: Sanchez said roughly $1.2 million remains encumbered in closed purchase orders in PeopleSoft and is not currently available as contracting authority until departments process change orders. Controller's representative Risa Sandler explained that those funds remain in departmental budgets but have not been released back into the contract authority; OCA and the Controller's Office said they are working to fix procedures and improve monitoring. Given outstanding questions, Chair Sandra Lee Feuer moved to continue the item for a deeper packet and further clarification.
