TO:
VIA:
FROM:
DATE:
Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE FEBRUARY 20, 2024
SUBJECT: AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH HF&H
CONSULTANTS, LLC FOR REFUSE CONTRACT NEGOTIATIONS AND SB 1383 COMPLIANCE ASSISTANCE
FISCAL
IMPACT: EXPENSE: $35,000 CONSULTING SERVICES
FUNDING SOURCE: $35,000 REFUSE ADMINISTRATION ENTERPRISE FUND BALANCE (374386-6099)
SUMMARY:
The City of Placentia has an exclusive franchise agreement with Republic Waste Services of Southern California, LLC (Republic), to provide solid waste and recycling services in the City. In the past seven (7) years, the City has undertaken numerous efforts to comply with a variety of unfunded State mandates such as Assembly Bill ("AB") 341 (Mandatory Commercial Recycling), AB 1826 (Mandatory Organic Commercial Recycling), and AB 1594 (Green Material used as Alternative Daily Cover). In September 2016, Governor Brown signed into law Senate Bill (SB") 1383 establishing methane emissions reduction targets for short-lived climate pollutants in various sectors of California's economy. SB 1383 establishes an unfunded mandated target to achieve a fifty percent (50%) reduction in statewide disposal of food and landscape waste into landfills from 2014 levels by 2020 and a seventy-five percent (75%) reduction by 2025. SB 1383 prescribes specific actions local jurisdictions must take to reduce short-lived climate pollutants related to solid waste collection and processing and includes new stipulations upon acceptable waste segregation and processing practices, as well as City procurement and reporting responsibilities.
In July 2020, the City entered into a Professional Services Agreement ("Agreement") with HF&H Consultants, LLC (HF&H) under the City Administrator's approval authority to assist the City with preparing to implement the extensive regulatory administrative burdens mandated in SB 1383.
On April 6, 2021, the City Council approved Amendment No. 1 to the Agreement for HF&H to assist the City in negotiating a fully restated and amended solid waste handling agreement with Republic and ordinance support to address the requirements of SB 1383. This amendment extended the term of the agreement to December 31, 2022, and increased the not -to -exceed contract amount to $119,999. In December 2022, Amendment No. 2 was executed under the City Administrator's administrative approval authority to extend the term of the agreement to June 30, 2024. The proposed Amendment No. 3 to this agreement is presented to the City Council for its consideration to provide added work scope, fee, and extend the contract term to complete the contract negotiations with Republic.
1.h.
Feb 20, 2024
City Council Agenda
February 20, 2024
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 3 to the Professional Services Agreement with HF&H Consultants, LLC in the amount of $35,000 for SB 1383 compliance and franchise agreement negotiation services, for a cumulative contract not -to -exceed amount of $154,999, and extend the term of agreement for an additional 12 months to June 30, 2025; and
2. Authorize the City Administrator to approve contract amendments up to 10% of the cumulative contract amount, or $15,499.90; and
3. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
DISCUSSION:
In July 2020, the City entered into an agreement with HF&H for the development of a contract profile and Senate Bill (SB) 1383 Gap Analysis as part of joint effort with the cities of Brea, Fullerton, Garden Grove, and Yorba Linda to analyze and ultimately negotiate a completely restated franchise agreement with their solid waste hauler for implementation of SB 1383 mandates. On April 6, 2021, the City Council approved Amendment No. 1 to the Agreement with HF&H to assist the City in negotiating a restated agreement with Republic, consolidating all previous amendments, and negotiating a new citywide organic waste recycling program. In December 2022, Amendment No. 2 was executed under the City Administrator's administrative approval authority to extend the term of the Agreement to June 30, 2024. This term extension was necessary due to delays in the contract negotiations.
Staff presents Amendment No. 3 (Attachment 1) for the City Council's consideration. Originally, negotiations with Republic were anticipated to conclude within 10 months. The City and Republic have been unable to reach agreement on rates and terms, and as a result the negotiations have been extended and ongoing and are now in the third year. Additionally, key members of the Republic negotiating team and management staff have been replaced, which has added time and additional cost to this project. HF&H has diligently supported the City throughout this process, offering a draft amended agreement, analyzing various cost proposals, and actively participating in negotiation sessions and updated the membership of the City Council Sewer and Refuse Ad Hoc Committee meetings as needed. Given the complexity of the negotiations and the necessity to comply with SB 1383, the ongoing assistance of HF&H remains crucial for the City's success in reaching a revised agreement with Republic.
HF&H has supported a variety of jurisdictions and agencies throughout the State with strategic waste diversion planning, cost -of -service and rate studies, and negotiations of new franchise agreements related to SB 1383 compliance. HF&H has assisted the neighboring cities of Anaheim, Garden Grove, Santa Ana, and Yorba Linda in negotiating and implementing a new and/or amended agreement with Republic for SB 1383 compliance and continue assisting the
City Council Agenda
February 20, 2024
Cities of Brea and Fullerton in this endeavor. They have extensive experience and knowledge of the City's current franchise agreement and negotiations. As such, Staff is recommending the approval of Amendment No. 3 to the Agreement with HF&H to increase the contract amount and extend the term to allow HF&H to continue assisting the City in finalizing contract negotiations with Republic.
FISCAL IMPACT:
The recommended actions will approve an amendment to the Professional Services Agreement with HF&H increasing the contract amount by $35,000, for a cumulative not -to -exceed contract amount of $154,999. A total of $35,000 is included for allocation from the Refuse Administration Fund in the FY 2023-24 Operating Mid -Year Budget Adjustment to cover the cost of the proposed amendment. No General Fund dollars will be used for this expenditure. Accordingly, sufficient funds exist for the recommended actions.
Prepared by:
Elsa Y. Robinson
Senior Management Analyst
Reviewed and approved:
Jennif' Lampman
Director of Finance
Reviewed and approved: Reviewed and approved:
Luis Estevez
Deputy City Administrator
Darriterrla
City Administrator
Attachments:
1. Amendment No. 3 to Professional Services Agreement
2. HF&H Scope of Work and Proposal