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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Authorize an Amendment to the Professional Services Agreement (PSA) with HDR Engineering Inc., to Develop the 2025-2045 Recycling Center Master Plan and to Provide Additional As-Needed Consulting Services
1. Motion authorizing the City Manager, or their designee, to approve an amendment to PSA #8002354 with HDR Engineering Inc. to develop the 2025-2045 Glendale Recycling Center Master Plan, increasing the agreement amount by $200,000 to $471,052, and extending the agreement duration to March 31, 2026, to provide additional as-needed consulting services related to implementation of the master plan based on City Council direction.
COUNCIL ACTION
Item Type: Consent Calendar
Approved for October 22, 2024 calendar
EXECUTIVE SUMMARY
On November 1, 2023, the Public Works Department entered a contract for the development of a twenty-year (2025-2045) Master Plan for the Recycling Center.
Subsequently, to proceed with the future use of the site additional consulting services will be needed such a preparation of a Request for Proposals for the selection of a new operator for the site, marketing the site to potential new operators, additional environmental and regulatory analysis and preparing reports to the City Council.
The purpose of this item is for the City Council to authorize an amendment to PSA with HDR Engineering Inc. to provide additional as-needed consulting services related to implementation of the Glendale Recycling Center Master Plan, increasing the amount of the agreement by $200,000 to $471,052 and extending the agreement duration from ending October 31, 2024, to March 31, 2026.
RECOMMENDATION
Approve a motion authorizing an amendment to the PSA #8002354, with HDR Engineering Inc., to Develop the 2025-2045 Glendale Recycling Center Master Plan, increasing the agreement amount by $200,000 and extending the duration to March 31, 2026, for additional as-needed consulting services related to implementation of the master plan.
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ANALYSIS
On October 24, 2023, the City Council approved a motion to award a PSA to HDR Engineering, Inc. for development of the 2025-2045 Glendale Recycling Center Master Plan. The PSA was completed on November 1, 2023, and the consultant has been developing this plan since. The master plan is now nearly complete, and staff expects that it will be presented to the City Council for direction later this calendar year.
Due to the recent collapse of the global recycling market, the imminent closure of the Scholl Canyon Landfill, and new statewide regulations targeting waste management operations, it was important for the city to develop a master plan to better strategize for the future operations on the Glendale Recycling Center site. Maximizing the future use of this key city’s asset is paramount and requires careful consideration, given the financial impact for years to come. Statewide numerous recycling centers have either closed or enacted substantial limits on the materials they receive meaning it is important for the city to make an informed decision on the future of the Glendale Recycling Center site.
The scope of work for the Glendale Recycling Center Master Plan includes analysis of the recycling center’s current site conditions and throughput, forecasting the city’s waste processing needs from 2025-2045 and identifying regional alternatives for managing the city’s future flow of refuse, recyclables and organics. The plan will be presented to the City Council later this year and will include recommendations for future use of the site for the Council to provide direction on.
As the Glendale Recycling Center Master Plan is nearing completion, staff became aware that additional consulting services are needed related to the presentation of the new plan to the City Council as well as necessary steps to take after the City Council provides direction. Since HDR Engineering, Inc. now has a great deal of expertise and understanding of the Glendale Recycling Center site, it makes a great deal of sense for them to be the engineering firm that continues this work rather than the city engaging in another prolonged RFP process.
Under the proposed PSA amendment, HDR Engineering will present the outcome of the Master Plan to the City Council including preparing the presentation and portions of the staff report. Originally staff had planned to provide this final report to Council; however, due to the depth of technical knowledge required to formulate the master plan, the complexity of the analysis and need to provide optimal responsiveness to Council’s questions, staff decided HDR Engineering is better positioned to present their analysis.
The cost of the preparation of these reports, attendance at two meetings, and in-person presentation at a Council meeting is approximately $7,000.
In addition to the presentation, the proposed amendment adds capacity to the PSA for necessary next steps following City Council direction on the future of the Recycling Center site. These additional costs are for as-needed services only and are dependent on direction from City Council on future use of the site. For example, most significant changes in use of the site will require further evaluation both technical and financial. {{section.number}}d3
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Additionally, some of the alternatives that will be presented to Council require substantial environmental review and permitting considerations. The proposed amendment will allow for the city to advance with this additional required work without delay.
The potential additional as needed services in Amendment 1 to PSA include:
1. Perform a market analysis of public/private partnerships needed to pursue an alternate use of the site. Currently, the Recycling Center has a private operator. It is unlikely that any future facility alternative will be a municipal operation meaning a new private operator will eventually be needed. A market analysis is recommended to provide data to help the city garner the best possible future operator’s agreement.
HDR Engineering, Inc. will research and meet with potential operators and provide feedback to the city on potential contract services scope, terms and conditions.
The consultant will be tasked with determining the factors that will foster numerous proposals and competition as well as deterring factors. Ultimately, this analysis will inform the crafting of a RFP and operator’s agreement to provide maximum value to the city and ratepayers.
2. Using the data in the Glendale Recycling Center Master Plan and market analysis, HDR Engineering, Inc. will prepare an RFP for the selection of a new operator for the site. This includes preparing a new scope of services, the proposal submittal format, the evaluation criteria and the procurement schedule and process. HDR Engineering, Inc. possess the knowledge and experience to prepare a new RFP for the city for a variety of different future uses for the site.
Following preparation and release of the RFP, HDR Engineering, Inc. is expected to assist the city with the evaluation of the proposals received. The consultant will provide the city with a technical evaluation of the top proposals including an assessment of each proposer’s technical approach, their staffing, equipment, operations plan, and maintenance plan. Additionally, they will assess each exception requested by the proposers. HDR Engineering, Inc. will also perform a financial evaluation of the proposals including potentially assessing tipping fees, revenue shares, tonnage and commodity pricing.
Lastly, under the proposed PSA amendment, HDR Engineering, Inc. will assist the city with proposer interviews and will update their technical and financial assessments based on these interviews. They will assist the city with negotiations and the selection of a new operator.
3. Provide contract management services for storm water and sewer system upgrades at the Recycling Center site. A project is underway for environmental improvements to the site to prevent dust and debris from operations from entering the storm drain system and local waterways. These improvements are required {{section.number}}d4
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regardless of the future use alternative selected by the City Council. HDR Engineering will use their expertise to provide oversight of the work performed.
4. Assist the city with updating the CEQA Mitigated Negative Declarations and updating the physical site as recommended by the Glendale Recycling Center Master Plan. Based on the alternative future use of the site selected by the City Council, an update to the Mitigated Negative Declarations may be needed. If a full CEQA review is required, it is not covered in this proposed amendment.
The proposed amendment to PSA with HDR Engineering is needed to proceed to the next phase of the Glendale Recycling Center Master Plan process. The master plan will identify multiple future uses for site and provide a comprehensive analysis of each alternative. Once the City Council selects an alternative, ongoing consulting services are needed to assist the city with the implementation of this alternative. This includes meeting with potential proposers, preparing the RFP and other bidding documents, assisting with the selection process and consulting on the environmental regulations pertaining to the change of use of the site.
The current recyclables processor at the is the Allan Company and their contract is set to expire March 31, 2026. If recyclables and/or refuse processing continues at this site, a new operator will need to be selected and in place by this date. Based on this relatively tight schedule, staff is requesting that the amendment the Glendale Recycling Center Master Plan PSA be authorized now so that it will be in place when the Glendale Recycling Center Master Plan is presented to Council. This will allow staff and the consultant to proceed immediately after receiving Council’s direction and will not have to wait for an amendment to be processed. Since the services are as-needed, the city will not be committed to spend funds under this agreement if the Council opts to not provide direction.
In reviewing the work product submitted by HDR Engineering to date, staff is confident in their abilities to continue carrying out these services into the implementation phase.
STAKEHOLDERS/OUTREACH
There is no outreach associated with this PSA amendment.
FISCAL IMPACT
The Glendale Recycling Center Master Plan PSA amendment will cost $200,000. The Public Works Department budget will absorb this cost and therefore no new appropriation is being requested at this time. The funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$200,000 GL: 43110-5300-PWD-7523-P0000 Refuse Disposal Fund {{section.number}}d5
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ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is considered a ministerial activity and therefore, not subject to CEQA review.
CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit #1, in accordance with the City Campaign Finance Ordinance No. 5744.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Do not approve a motion authorizing a PSA amendment with HDR Engineering which will delay implementation of the Glendale Recycling Center Master Plan
Alternative 2: The City Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Interim Director of Public Works
Prepared by:
Etienne Ozorak, Integrated Waste Superintendent
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
1. Campaign Disclosure Form