O riginal Agreement No. 23-058-CM
Negotiation Assistance for Republic Services
AMENDMENT NO. 1
1. P
arties. The parties to this Contract Amendment are the City of Hercules, a public body corporate and the following named Contractor:
R3 Consulting Group, Inc.
1512 Eureka Road Suite 220
Roseville, CA 95661
(916) 782-7821
Attn: Rose Radford
[email protected]
T he parties to this Contract Amendment do mutually agree and promise as follows:
2. P
urpose. This Amendment No. 1 is being entered into to a mend an existing contract between the City and Contractor which was approved by the City Council/City Manager of the City of Hercules on August 28, 2023. Said contract shall her einafter be referred to as the "Original Contract" and is incorporated herein by reference. 3 . Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments thereto, which are unaffected by this Contract Amendment Agreement.
4. A
mendment. This Amendment No. 1 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to exceed $30,000, total contract amount $50,000. 5 . Amendment Approval: This Amendment No. 1 is hereby approved by the City Council/City Manager of the City of Hercules on this 24 day of October 2023. 6 . Signatures. These signatures attest the parties' agreement hereto:
C
ity of Hercules
s/_______________________________
Dante Hall, City Manager
D
ate: ___________________________
A
pproved as to form:
B
y ______________________________
Patrick Tang, City Attorney
R3 Consulting Group, Inc
s/_______________________________
_________
________________________
Name/Title
D
ate: ___________________________
A
ttachments:
Attachment A: Scope of Service & Payment
DocuSign Envelope ID: 9038236F-111D-4D57-8F45-5B6D052C78F8 Garth Schultz President
11/20/2023
11/20/2023
11/28/2023
City of Hercules | Solid Waste Fee Study 1
October 13, 2023
Mr. Michael Roberts, PE Mr. J. Patrick Tang
Public Works Director/City Engineer City Attorney
City of Hercules Jarvis Fay, LLP
submitted via email: [email protected] patrick@ jarvisfay.com SUBJECT: Solid Waste Fee Study – R3 Proposal
Dear Mr. Roberts,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached proposal to the City of Hercules to provide a Solid Waste Fee Study (Study).
R3 is a statewide leader in analyzing solid waste franchise fees and we are excellently positioned to provide well-informed and cost-effective analysis to the City. Our team members are experts in the underlying solid waste management operations necessary for such analysis, and we have provided solid waste rate, revenue and fee studies to local governments throughout the state for over 20 years.
Study Approach
Upon acceptance of this proposal, R3 will provide the City with:
1. Cost-Recovery Analysis
R3 will research, analyze and estimate the value of the City’s solid waste management, administration, oversight, compliance and other expenditures that may be eligible for recovery from solid waste rates via franchise fees.
The analysis will rely on financial information provided by the City, including but not limited to internal cost-allocation information, salary and benefit information for positions having responsibility for solid waste management and compliance matters, street sweeping, storm-drain and/or catch basin waste removal, compliance activities, and other associated information that may identified by the City or R3.
The outcome of the analysis will be a set of total annual costs for solid waste management, administration, oversight, compliance and other activities. This total will represent the fee amount available to offset documentable City expenditures.
2. Vehicle Impact Analysis
R3 will research, analyze and estimate the value of the impact that solid waste collection vehicles operated by the City’s contracted solid waste service provider(s) have on the City’s streets.
The analysis will be based on the value of the City’s streets, wear and tear to them, and the estimated proportionate impact from solid waste collection vehicles. Information used in this analysis may include but is not limited to the number of street miles by type, vehicle trips on streets by vehicle type, pavement management plans, and other associated information provided by the City.
The outcome of this analysis will be a total annual proportionate allocation of maintenance needs attributable to solid waste collection vehicles. The resultant total will represent the fee amount available to offset vehicle impacts to streets.
3. Property Value Analysis
R3 will research, analyze, and estimate the value of the City-government property rights conveyed to the City’s contracted solid waste provider(s) that may be eligible for recovery via franchise fees.
Attachment A: Scope of Service & Payment
DocuSign Envelope ID: 9038236F-111D-4D57-8F45-5B6D052C78F8 City of Hercules | Solid Waste Fee Study 2
The analysis will be based on the estimated amounts of time that solid waste containers are placed in the public right-of-way for collection as well reasonable estimates of the rental value for that unique use of the public right-of-way. This analysis may also include other significant uses of government property that may be identified by the City and R3.
The outcome of this analysis will be an estimated annual figure for the rental value associated with the use of City government property and will represent the fee amount available to compensate the City for the use of public property.
4. Fee Analysis
R3 will research, analyze and summarize current fee revenues paid to City by contracted solid waste providers and will compare those values to the sum of the cost-recovery and property value fee estimates per the above. Differences between current franchise fee revenues, fees collected through other mechanisms (e.g., AB 939 or SB 1383 fees) and those resulting from our analysis will be identified and quantified.
5. Findings
R3 will provide the City a written memorandum of findings regarding the results of our analysis. We will work with City staff to revise and finalize the memorandum for City consideration. One round of revisions in response to comments is included in our pricing.
6. Meetings
R3 will periodically meet with City representatives during the course of the engagement. This will include an initial kick-off meeting, limited check-in meetings, and a meeting to review draft results.
Public meetings are not included in the base pricing, but our team can be available, on an hourly basis, to attend public meetings if necessary. All meetings will be conducted virtually.
Study Timeline & Cost
R3 proposes to complete the Study within 90 to 150 days of proposal acceptance, reliant on timing of proposal acceptance and the City’s timely and thorough provision of information needed for completion.
R3 proposes to complete the Study for a cost of $30,000 on a time and materials basis. A breakdown of costs by task are provided in Table 1, below.
Any additional consulting services beyond those proposed will be charged at our standard hourly billing rates, shown on Table 2, on the following page.
Table 1: Breakdown of Costs
TASK COST
Cost-Recovery Analysis $ 7,500
Vehicle Impact Analysis $ 7,500
Property Value Analysis $ 7,500
Fee Analysis $ 2,500
Findings $ 2,500
Meetings $ 2,500
DocuSign Envelope ID: 9038236F-111D-4D57-8F45-5B6D052C78F8 City of Hercules | Solid Waste Fee Study 3
Table 2: Standard Hourly Billing Rates
CLASSIFICATION HOURLY RATE
Principal $ 285 per hour
Sr. Director $ 285 per hour
Director $ 240 per hour
Sr. Managing Consultant $ 220 per hour
Managing Consultant $ 200 per hour
Sr. Consultant $ 190 per hour
Consultant $ 170 per hour
Associate Consultant $ 155 per hour
REIMBURSABLE COSTS
Consultants/Subcontractors Cost plus 10%
Lodging and meals Direct cost
Travel - Private or company car At Current Federal Rate Travel - Other Direct cost
Delivery and other expenses Direct cost
About R3
Incorporated in 2002, R3 is an “S” Corporation and a California Certified Small Business with offices in Roseville and Oakland. With decades of solid waste consulting experience and knowledge, our seasoned, professional team members have backgrounds in the public and private sectors, engineering, resource management, environmental science, and urban planning. We have conducted hundreds of solid waste management consulting projects for clients throughout California, and we aim to always complete work in a cost-effective manner while achieving our clients’ goals and objectives.
With R3, our clients always receive:
》 Unbiased, conflict-free project management and objective, fair treatment. – We have no entanglements with local districts or waste haulers, no hidden agendas, and no pre- ordained vendors. This translates to a high repeat customer rate and solid, respectful relationships with cities and haulers.
– Extensive experience managing projects with multiple stakeholders, which includes planning realistic goals, schedules, and budgets, effectively communicating with all key players, working collaboratively to achieve objectives and stay responsive, and streamlining processes. 》 Data-driven solutions and clear deliverables.
– Best-approach, honest recommendations to meet the City’s needs, derived from decades of solid waste consulting experience and analysis of client data. – Focused on improving safety & customer service, increasing productivity, and reducing costs. 》 Comprehensive, up-to-the-minute understanding of industry regulations. – Principals and key staff have superior knowledge base from over decades of hands-on industry and legislative compliance experience. This foundational knowledge is supplemented by active, weekly participation and engagement with industry groups, regulators, and state policymakers.
DocuSign Envelope ID: 9038236F-111D-4D57-8F45-5B6D052C78F8
1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 f 916.782.7824 | www.r3cgi.com 4 Project Team
Oversight and Quality Assurance
R3’s solid waste fee studies are overseen by R3’s seasoned solid waste consultants Garth Schultz, Scott Hanin, and William Schoen, each of whom have over 20 years of experience in the solid waste field.
Garth is R3’s President and has been the lead analyst on R3’s prior solid waste franchise fee studies. He also brings experience in both the public and private solid waste sectors.
Scott, Sr. Director, is a former city manager and former solid waste joint powers’ authority executive director. In his prior roles, Scott conducted numerous fee studies, of all varieties and types. William, Sr.
Director, is R3’s most senior financial analyst and has completed rate and fee studies for dozens of public agencies statewide.
Client Engagement and Analysis
The City’s client contact and Project Lead for this engagement will be Rose Radford, Sr. Managing Consultant. Rose is the primary consultant to the City and will be responsible for engaging with the City to gather necessary information for completion of the Study, arrange associated meetings, and communicate results.
Rose will work with the support and direction of Garth Schultz, Principal, who will provide analytical oversight and quality control and assurance, and Jim Howison, Sr. Managing Consultant, who is heavily engaged in our team’s efforts related to fee justification studies for 20+ public sector clients. The team will be supported by other qualified R3 staff, as necessary, for timely and successful completion. Brief biographies of our staff are currently available on our website, and relevant team member resumes can be made available upon request.
* * * * * We appreciate the opportunity to submit this proposal to the City of Hercules. Should you have questions regarding our proposal or need additional information, please don’t hesitate to reach out directly.
Sincerely,
Rose Radford | Sr. Managing Consultant Garth Schultz | President R3 Consulting Group, Inc. R3 Consulting Group, Inc.
415.347.9536 | [email protected] 510.292.0853 | [email protected] DocuSign Envelope ID: 9038236F-111D-4D57-8F45-5B6D052C78F8