Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute an Amendment to the Non-Professional Services Agreement with Dillard Environmental Services, Inc. for Special Debris Clean-Up Services, Increasing the Total Not to Exceed Amount from $280,000 to $440,000
Staffreport
COUNCIL PRIORITY
• Quality of Life
SUMMARY
Dillard Environmental Services, Inc. (Dillard) provides debris clean up from City right of way and City-owned property. This Council action seeks to increase the total not-to-exceed amount from $280,000 to $440,000 (an increase of $160,000) to continue services through FY 2027 using funding available in the adopted budget.
RECOMMENDATIONS
Staff recommend amending the Non-Professional Services Agreement with Dillard to increase the total not-to-exceed amount by $160,000, from $280,000 to $440,000, for special debris clean-up services through the contract expiration date of June 30, 2027.
BACKGROUND
Streets, sidewalks, and public spaces improve the quality of life for all residents; keeping them trash free ensures they are available for use by everyone.
Beginning in FY 2023, the City encountered a volume of illegal dumping and encampment clean-up work that exceeded available staff capacity. As a result, the City began utilizing outside contractors to assist with special clean-up services, particularly for difficult illegal dumping situations and difficult encampment clean-ups. The numbers below reflect the total amount spent per year across multiple contractors.
Fiscal Year Amount Contracted Out
FY 2023 $130,000
FY 2024 $20,000
FY 2025 $180,000
FY 2026 $250,000
To identify an appropriate contractor and procurement approach for this work, staff evaluated several options and determined that the unique conditions at each debris clean-up location make costs difficult to estimate in advance. These conditions include:
• Amount and type of debris
• Hazardous and bio-hazardous materials
• Site accessibility
• Equipment and staffing needs
• Distance from the roadway
Because these factors are generally unknown until a site is assessed, staff determined that a traditional bid based on a defined scope of work would not provide reliable pricing. Staff compared rate sheets from three contractors but found that actual costs varied significantly based on the resources required at each location. Staff therefore began obtaining quotes for individual clean-up locations. Through these comparisons, Dillard consistently provided the lowest quote. Dillard is also licensed to handle and dispose of hazardous and bio-hazardous waste, allowing the City to use one contractor at locations where hazardous materials may be present.
Previous Actions
• December 1, 2025: Staff recommended the City contract solely with Dillard Environmental Services, Inc. for debris clean-up services for a total not-to-exceed amount of $280,000. The City Council subsequently authorized the agreement through Resolution No. 2025-153 and a contract was executed later that month
• May 4, 2026: Staff proposed a targeted reduction of the FY 2027 Street Services Structural Repair & Maintenance budget, which includes encampment cleanup, from $438,000 to $218,000. The City Council subsequently authorized the reduction through Resolution No. 2026-055
Analysis
Staff determined the proposed contract increase amount of $160,000 based on FY27 budgetary needs, the amount and frequency of encampment cleanups during FY 2025-2026 and their associated cost, and the anticipated demand for specialized contract debris clean-up services during FY 2026-2027. The FY 2026-2027 budget has funds available for this purpose.
Current Agency Policies
• Support and implement programs that enhance quality of life and wellness for the San Leandro community
Financial Impacts
Sufficient funds are included in the FY 2027 General Fund budget to amend the contract with Dillard to add an additional $160,000 in specialized debris clean-up services, for a total amount not to exceed $440,000:
• General Fund-Administration, Account F100-CC094-SC037-P0107
o Original encumbrance: $280,000 (FY 2026)
o Proposed additional encumbrance: $160,000 (FY 2027)
o Total $440,000
This Council action will not impact fund balance because there are funds available in the FY 2027 adopted budget.
ATTACHMENTS
A: DRAFT Resolution (Dillard Debris Amendment)
B: Compensation Schedule
C: Original NPSA between the City of San Leandro and Dillard Environmental Services, Inc.
PREPARED BY: Dana Turner, Management Analyst I, Public Works Department