AGENDA REPORT
Meeting Date: May 20, 2025
Item Number:
To: Honorable Mayor & City Council
From: Robert Welch, P.E., Utilities General Manager
Colonel James Burnley, Solid Waste Manager
Melissa Gomez, Senior Management Analyst
Subject: AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND HF&H CONSULTANTS, LLC, FOR
SOLID WASTE CONSULTATION; AND
APPROVAL OF A CHANGE PURCHASE ORDER IN THE AMOUNT
OF $25,000 FOR A TOTAL NOT-TO-EXCEED AMOUNT OF
$259,000
Attachments: 1. Amendment No. 2
RECOMMENDATION
Staff recommends that City Council approve an amendment to the agreement with HF&H Consultants, LLC, for solid waste consultation and approve a change purchase order in the amount of $25,000 for a total not-to-exceed amount of $259,000.
INTRODUCTION
Staff recommends amending the City’s agreement with HF&H Consultants, LLC (HF&H) to include a road impact study as part of the ongoing solid waste rate study. This additional analysis will help determine the appropriate contribution from the Solid Waste Enterprise Fund toward street and alley maintenance, supporting long-term financial sustainability and equitable cost allocation. The amendment increases the contract amount by $25,000.
DISCUSSION
HF&H was contracted by the City in 2022 under a three-year agreement, with the option for two one-year extensions, to provide solid waste consulting services, including cost of service studies. The total contract consideration was $675,000 with specific PO allocations designated for each contract year. For FY 2024/25, staff initially requested a BEVERL
HILLS
Meeting Date: May 20, 2025
PO in the amount of $135,000. Later in the fiscal year, a contract amendment was requested to increase the amount by $99,000 due to additional work related to rate analyses, waste hauler audits, and organics compliance. Additionally, a change purchase order was processed under the City Manager’s authority, increasing the FY 2024/25 PO to $234,000.
This expanded scope of work aligns with the City’s current efforts to undertake a comprehensive solid waste rate study, aimed at ensuring sufficient revenue is generated to sustain the Solid Waste Enterprise Fund over the next five fiscal years (FY 2026/27 – FY 2030/31). As an enterprise fund, solid waste operations are financially independent of the City’s General Fund and must remain self-sustaining, maintaining a minimum fund balance of 50% of the annual operating budget.
The rate study will also ensure that costs are equitably allocated among customer classes based on their respective service demands. As part of the analysis, the City is evaluating the impact of solid waste collection vehicles on public roadways within Beverly Hills. These vehicles are significantly heavier than standard passenger vehicles and make frequent trips through alleys and City streets, which accelerates pavement wear and degradation over time. Recognizing this, it is common and generally accepted practice to allocate a portion of solid waste revenues toward roadway maintenance.
Accordingly, the Solid Waste Enterprise Fund contributes to Capital Improvement Project (CIP) 195 – Street and Sidewalk Improvements, specifically targeting repairs and maintenance in alleys and City streets, which are areas most affected by the routine passage of these heavy-duty service vehicles.
The current agreement’s scope of services includes evaluating rate structures to ensure compliance with Proposition 218 and assessing the long-term financial sustainability of refuse service fees. Current tasks under the agreement include:
1. Performing financial and rate analyses;
2. Reviewing hauler-submitted rate adjustment requests;
3. Providing contracting assistance;
4. Attending meetings and briefings to support implementation;
5. Conducting waste hauler audits; and
6. Assisting with Senate Bill 1383 compliance.
This proposed amendment adds a road impact study to the scope of work, increasing the total contract amount by $25,000. The study will help determine the Solid Waste Enterprise Fund’s proportional contribution to CIP 195 – Street and Sidewalk Improvements. Staff anticipates completion of the full cost of service study by the end of 2025.
Meeting Date: May 20, 2025
FISCAL IMPACT
The additional cost of $25,000 will be funded from the Solid Waste Enterprise Fund.
The original agreement and purchase order in the amount of $135,000 were approved by City Council on June 18, 2024. An amendment and change order were approved by the City Manager on September 10, 2024, increasing the agreement and purchase order by $99,000 for a total not-to-exceed amount of $234,000. Any additional consideration increases in the same year that exceed $100,000 are required to be approved by City Council; hence, this additional contract increase and change purchase order of $25,000 are being brought forward for Council approval for a total not-to-exceed amount of $259,000.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
B0785-0001\3101343v2.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND HF&H CONSULTANTS, LLC,
FOR SOLID WASTE CONSULTATION
NAME OF CONSULTANT: HF&H Consultants, LLC
RESPONSIBLE PRINCIPAL Laith Ezzet, Senior Vice President OF CONSULTANT:
CONSULTANT'S ADDRESS: 2081 Business Center Drive, Suite 265 Irvine, CA 92612
Attention Laith Ezzet, Senior Vice President
CONSULTANT’S E.I.N./TAX I.D. NO.: 94-3097242
CITY'S ADDRESS: City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: July 1, 2022
TERMINATION DATE: June 30, 2025 (original termination date) June 30, 2026 (amended pursuant to this
Amendment No. 2)
CONSIDERATION: Original Agreement:
Not to exceed $675,000.00, as more particularly
described in Exhibit B
Amendment No. 1:
Additional not to exceed $99,000.00
Amendment No. 2:
Additional not to exceed $25,000.00
Total Not to Exceed: $799,000.00, as more
particularly described in Exhibit B
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AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND HF&H CONSULTANTS, LLC,
FOR SOLID WASTE CONSULTATION
This Amendment No. 2 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY") and HF&H Consultants, LLC (hereinafter called "CONSULTANT"), dated June 14, 2022, and identified as Contract No. 352-22, as amended by Amendment No. 1, dated September 10, 2024, and identified as Contract No. 489-24 (“Agreement”).
RECITALS
A. CITY and CONSULTANT entered into the Agreement for solid waste consultation, which was previously amended.
B. CITY and CONSULTANT desire to further amend the Agreement to extend the Termination Date, expand the Scope of Work to include analysis of annual street maintenance costs associated with refuse vehicles, and increase the Consideration to compensate CONSULTANT for its services.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Termination Date shall be amended as set forth on the cover page.
Section 2. The Consideration shall be amended as set forth on the cover page.
Section 3. Exhibit A, “Scope of Work”, is hereby restated and amended as attached hereto and incorporated herein.
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Section 4. Exhibit B, “Schedule of Payment and Rates”, is hereby amended as attached hereto and incorporated herein.
Section 5. Except as specifically amended by this Amendment No. 2 and prior amendments, the remaining provisions of the Agreement shall remain in full force and effect.
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________
SHARONA R. NAZARIAN, PsyD
Mayor
ATTEST:
______________________(SEAL)
HUMA AHMED
City Clerk
CONSULTANT: HF&H Consultants, LLC
ROB C. HILTON
President
LAITH EZZET
Senior Vice President
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_______________________ ____________________________
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
____________________________
SHANA E. EPSTEIN
Director of Public Works
____________________________
ROBERT WELCH
Utilities General Manager
[Signatures continue]
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____________________________
SHARON L’HEUREUX DRESSEL
Risk Manager
____________________________
ANTHONY RODSTEIN
Purchasing Services Manager
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EXHIBIT A
SCOPE OF WORK
I. SCOPE OF WORK
ORIGINAL AGREEMENT
CONSULTANT shall perform the following services:
Task 1: Perform Financial and Rate Analyses
CONSULTANT shall assist the CITY in its evaluation of the cost and rate impacts associated with various budgeting, operational, contractual, and service changes that may be implemented. The analysis will include the costs of the CITY’s municipal residential solid waste operations, as well as the contracted commercial solid waste operations. This task may also include financial analyses related to diversion plans to comply with State of California (“State”) recycling mandates.
The analysis shall include a projection of the total rate revenue requirement and the percentage rate increase to residential and commercial rates in order to meet the rate revenue requirement.
CONSULTANT will utilize a multi-year Microsoft Excel spreadsheet to estimate revenues and expenses for the period of analysis and develop alternative rate adjustment strategies that will meet the target fund balance by the end of the projection period.
CITY shall be responsible for providing its detailed budgeting information and historical financial results, and various operating data such as the number of tons collected and diverted by line of service, container distributions, and other relevant data.
Task 2: Review Rate Adjustment Requests Submitted by Hauler CITY contracts for commercial solid waste handling services with a private waste hauler. CITY also contracts for mixed processing of the CITY’s residential waste that is delivered to a material recovery facility by CITY crews. The waste hauler and material processor are allowed to request an annual rate adjustment. If requested, CONSULTANT will verify the accuracy of the rate adjustment calculations for consistency with the rate adjustment formula contained in the agreement between the hauler and/or material processor and CITY.
Task 3: Provide Contracting Assistance
CONSULTANT will assist CITY upon request with negotiation of amendments to the existing commercial solid waste collection agreement with the commercial waste hauler and/or the residential processing agreement. This may include enhancements to existing services or waste diversion programs to increase recycling and comply with State waste diversion mandates.
Task 4: Meetings, Briefings and Evaluation of Implementation Issues CONSULTANT anticipates a variety of planning meetings and project briefings with CITY staff, Docusign Envelope ID: A73ADBAA-78FA-4D97-9A91-BC8262991F66 6 B0785-0001\3101343v2.doc
the Public Works Commission, and the City Council during the term of the engagement, as well as requested analyses of various implementation issues associated with both the residential and commercial services. CONSULTANT shall perform the supporting analyses, conduct the requested briefings, and attend the various meetings.
Task 5: Waste Hauler Audits
CONSULTANT shall audit certain contract information as requested by CITY. Section 7.2.6 of the current commercial solid waste agreement (Agreement No. 537-10) contains a provision for an audit of the hauler’s records to be conducted every third year, and the audit cost is to be reimbursed to the CITY by the hauler. The current audit based on reports and records from Calendar Year (“CY”) 2019 and CY 2021 will be completed in Fiscal Year (“FY”) 2022-23. The next audit to be performed is in CY 2024, which will be based on reports and records from April 1, 2022 through December 31, 2023. The scope of the audit may, at the discretion of CITY, include reported tonnage (refuse, recycling, organic waste), accuracy of commercial customer billing for consistency with CITY’s approved rate schedule, achievement of contractually required diversion levels, confirmation that all required tonnage to be delivered for processing has been properly handled and accounted for, and compliance with various service and reporting requirements to ensure that the contractor is performing in accordance with the contract specifications.
Task 6: California Senate Bill (“SB”) 1383 Compliance Assistance Upon CITY’s request, CONSULTANT shall monitor hauler compliance with SB 1383 requirements and diversion requirements in the current solid waste agreement, and calculate liquidated damages if contractor is deemed non-compliant. If requested, CONSULTANT may assist CITY with other analyses to assist with SB 1383 compliance.
AMENDMENT NO. 1
Task 6: California Senate Bill (“SB”) 1383 Compliance Assistance Upon CITY’s written request, CONSULTANT shall monitor hauler compliance with Senate Bill (“SB”) 1383 requirements and diversion requirements in connection with CITY’s current solid waste agreement, and calculate liquidated damages if the solid waste contractor is deemed noncompliant. If requested, CONSULTANT may assist CITY with other analyses and technical assistance with SB 1383 compliance.
AMENDMENT NO. 2
Task 1: Data Gathering
CITY collects solid waste from single-family residential, multi-family cart customers, and alley customers. CITY’s commercial solid waste hauler, Athens Services (Athens), collects from commercial and multi-family bin customers. CONSULTANT will issue a Request for Information (RFI) to CITY and Athens to collect information on both its collection operations and its pavement Docusign Envelope ID: A73ADBAA-78FA-4D97-9A91-BC8262991F66 7 B0785-0001\3101343v2.doc
management system. Calculating the annual impact of the various vehicle types on street maintenance costs requires the following data:
• Miles of streets within CITY (center line and lane miles) by functional classification • Street Traffic Index (TI) by functional classification • Current and target Pavement Condition Index (PCI)
• Average annual street maintenance cost at current PCI • Lump sum cost to achieve target PCI and annual street maintenance cost at target PCI • Traffic composition and volume data:
o Average daily number of vehicle passes by street classification o Percentage of street traffic associated with trucks (versus automobiles) o Percentage of trucks that are construction-related trucks • Collection operations data:
o Number of collection vehicles by type (rear loader/front loader/side loader) o Number of containers serviced and average frequency of collection o Collection vehicle weights, load weights, and number of axles CONSULTANT expects CITY to provide the necessary data, as mentioned above, after consultation with CONSULTANT. If the data is unavailable or CITY or Athens cannot provide it, CONSULTANT will rely on readily available information from its work on similar projects (and/or other sources).
Task 2: Model Vehicle Impacts
CONSULTANT will use the data gathered in Task 1 to model the impact of vehicles on pavement surfaces and calculate the annual physical and fiscal impacts on CITY streets associated with refuse vehicle traffic. The analysis is based on the fact that both the number and weight of vehicles impact the various classifications (residential, collector, and arterial) of streets differently based on their designs. Each classification is built to a design specification that is meant to handle a certain amount of vehicle loading over its design lifetime. CONSULTANT will determine the equivalent single axle load (ESAL) for each vehicle type and the number of vehicles that will travel over CITY’s roads to determine the type of impact on each road classification based on the street types designed to handle that projected loading. The relative impact of each type of vehicle is calculated based on the percentage of the total ESALs that a street experience attributed to each vehicle type.
Task 3: Document Results
Using the information obtained in Tasks 1 and 2, CONSULTANT will calculate the annual street maintenance cost associated with refuse vehicles relative to other vehicle types. CONSULTANT will document the results of the analysis in a draft report and submit that draft to CITY staff for review and comment. CONSULTANT will then review and discuss any and all comments CITY may have and incorporate requested changes, as appropriate, before issuing the final report.
Task 4: Meetings
CONSULTANT is available to participate in up to two virtual meetings with CITY staff during this engagement and is available to discuss options with CITY about the timing for these meetings. It may be helpful to schedule the first meeting during the data collection and analysis portion of the project to discuss the RFI, identify responsible parties for gathering data, and identify areas where Docusign Envelope ID: A73ADBAA-78FA-4D97-9A91-BC8262991F66 8 B0785-0001\3101343v2.doc
gathering data will be problematic. An additional meeting may be helpful for working out problems with data gathering, reviewing the model with CITY staff, or discussing the draft report.
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EXHIBIT B
SCHEDULE OF PAYMENT AND RATES
CITY shall compensate CONSULTANT for the satisfactory performance of services performed under this Agreement as described in Exhibit A in the not-to-exceed amount of Seven Hundred Ninety-Nine Thousand Dollars ($799,000.00) based on the fees and rates set forth herein.
COST ESTIMATE
CONSULTANT will perform the scope of work based on time and materials. Estimated costs by task are summarized below. Fees may be shifted among tasks and among years to meet the CITY’s study priorities. Actual costs may be higher or lower than estimated amounts, depending on the level of support requested by the CITY for specific tasks. The audit costs in Task 5 are reimbursed to CITY by the hauler per terms of the CITY’s commercial solid waste agreement (Agreement No. 657-19).
Task Description
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Budget Budget Revised
Budget
Budget
(Option
Year 1)
Budget
(Option
Year 2)
1 Perform financial and rate analyses $47,000 $36,500 $70,200 $50,500 $30,000 2 Review contractor rate adjustment
request $8,000 $8,500 $9,000 $9,500 $10,000
3 Assistance with amendments $0 $0 $0 $20,000 $20,000
4 Meetings, briefings, and implementation
issues $15,000 $15,000 $15,000 $15,000 $15,000
5 Waste Hauler Audits $10,000 $40,000 $70,000 $10,000 $35,000 6 SB 1383 Compliance Assistance $45,000 $30,000 $69,800 $35,000 $35,000 7 Refuse Vehicle Street Impact Analysis N/A N/A $25,000 N/A N/A Total fees and expenses: $125,000 $130,000 $259,000 $140,000 $145,000
FEE SCHEDULE
CONSULTANT’s hourly rates through December 31, 2022 are shown below and subject to a 3.5% adjustment each January 1st.
Staff Classification Rate
Senior Vice President / President $315
Vice President $300
Senior Project Manager $285 to $295
Manager $240 to $255
Senior Associate $210 to $235
Associate Analyst $160 to $190
Assistant Analyst $135 to $150
Administrative Analyst $110 to $120
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REIMBURSABLE EXPENSES
CITY shall reimburse CONSULTANT for the following expenses:
Automobile travel Standard IRS allowance per mile
Subcontractors Actual + 15%
Postage, overnight mail, and other out-of-pocket costs Actual cost CONSULTANT shall submit to CITY a detailed invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within thirty (30) days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall pay CONSULTANT said Consideration in accordance with the schedule of payment set forth in this Exhibit.
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