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Agenda Item No: 1.g
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: May 19, 2026
Submitted by: Matthew Di Mario
From: Public Works
Subject:
AMENDMENT NO. 5 TO PROFESSIONAL SERVICES AGREEMENT WITH HF&H CONSULTANTS, LLC, FOR REFUSE CONTRACT NEGOTIATIONS AND SB 1383
COMPLIANCE ASSISTANCE
Financial Impact:
Expense: $134,572 Annual Contract Amount
Budget: $75,000 FY 2025-26 Refuse Administration Fund (403-80700-6400) $87,000 Refuse Administration Fund Balance
Summary:
In July 2020, the City entered into an agreement with HF&H Consultants, LLC (HF&H) under the City Administrator's approval authority for $24,999 to assist the City with preparing to implement the extensive regulatory administrative burdens mandated by Senate Bill (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 franchise agreement with Republic Services and ordinance support to address the requirements of SB 1383. The 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. Amendment No. 3 was approved by the City Council on February 20, 2024 and amended the scope of work to include additional tasks and increase the contract amount by $35,000 for a total contract not -to - exceed amount of $154,999. Amendment No. 4 was approved by City Council on May 20, 2025 extending the term to June 20, 2027 and increasing the contract amount by $90,000 for a revised contract not -to -exceed amount of $244,999, due to the complexity of the contract negotiations with Republic Services and the City.
Staff is proposing Amendment No. 5 to add $150,000, bringing the revised cumulative contract not -to -exceed amount to $394,999. This contract increase is to complete remaining items for the agreement negotiating process and to provide on-call support for SB 1383 and additional contract requirements in FY 2026-27. The additional contract costs for the current fiscal year are being requested through a fund balance transfer via Resolution R-2026-29. A total of $87,000 is requested through a fund balance transfer for the additional services required to complete the negotiation process with Republic Services. The future cost of services will be 1 included in the operating budgets for future fiscal years.
Recommended Action:
It is recommended that the City Council:
1. Adopt Resolution R-2026-29, a Resolution of the City Council of the City of Placentia, California, authorizing a budget amendment in Fiscal Year 2025-26 in compliance with the City Charter of the City of Placentia §§ 1206 and 1209 pertaining to appropriations for actual expenditures; and
2. Approve Amendment No. 5 to the Professional Services Agreement with HF&H Consultants, LLC, for refuse contract negotiations and SB 1383 compliance assistance services to increase the contract amount by $150,000 for a revised cumulative contract not -to -exceed amount of $394,999 for the entire contract term; and
3. Authorize the City Administrator and/or her designee to execute all necessary documents in a form approved by the City Attorney.
Strategic Plan Statement:
There is no specific strategic plan goal or objective associated with this recommended action.
Discussion:
In July 2020, the City entered into an agreement with HF&H for $24,999 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. The amendment also 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. Amendment No. 3 was approved by the City Council on February 20, 2024, and amended the scope of work to include additional tasks, increased the contract not -to -exceed amount by $35,000 for a total cumulative not -to -exceed amount of $154,999, and extended the term through June 30, 2025, to complete the contract negotiations with Republic. On May 20, 2025, City Council approved Amendment No. 4, which increased the contract amount by $90,000 for a cumulative not -to - exceed contract amount of $244,999 and extended the term to June 20, 2027.
Staff is presenting Amendment No. 5 for City Council's consideration. Negotiations with Republic Services were anticipated to conclude earlier, but conversations on rates and terms extended negotiations into 2026. Additionally, key members of both the Republic and City negotiating teams 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. 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 other Orange County cities 2 including Anaheim, Brea, Garden Grove, Huntington Beach, Santa Ana, and Yorba Linda in negotiating and implementing a new and/or amended agreement with Republic for SB 1383 compliance. 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. 5 to the agreement with HF&H to increase the contract amount to add $150,000 for a revised cumulative contract not -to -exceed amount of $394,999 to allow HF&H to continue assisting the City in finalizing contract negotiations with Republic.
Financial Summary:
The recommended action will approve Amendment No. 5, to the Professional Services Agreement with HF&H, increasing the contract amount by $150,000 for the remainder of the term, for a revised total not -to -exceed contract amount of $394,999. Funds for the Fiscal Year 2025-26 expenses will be obtained via Resolution No. R-2026-29, by transferring $87,000 from the Refuse Administration fund balance to pay for the additional services required to complete the negotiation process. The future cost of the services will be proposed in the operating budgets for future years.
Attachments
Attachment 1 - Resolution No. R-2026-29
Attachment 2 - HF&H Consultants, LLC Amendment No. 5
Attachment 2 - Exhibit A - HF&H Proposal
3 RESOLUTION NO. R-2026-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, AUTHORIZING A BUDGET
AMENDMENT IN FISCAL YEAR 2025-26 IN COMPLIANCE
WITH THE CITY CHARTER OF THE CITY OF PLACENTIA
§§ 1206 AND 1209 PERTAINING TO APPROPRIATIONS
FOR ACTUAL EXPENDITURES
A. Recitals.
(i) The adopted budget for the 2025-26 Fiscal Year sets out estimated appropriations for City expenses throughout the year.
(ii) From time to time, the adopted budget must be adjusted when precise expenditures are finally determined or when estimated expenditures exceed projected costs allocated.
(iii) The City Charter of the City of Placentia § 1206 authorized the City Council to amend or supplement the budget by motion adopted by the affirmative votes of at least three members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenues not included in the budget. All other legal prerequisites to the adoption of this Resolution have occurred.
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
1. Recitals. The above recitals are all true and correct and are herein incorporated.
2. The adopted budget for Fiscal Year 2025-26, Resolution No. R-2025-25 is hereby amended to reflect the following expenditure of funds from the Account specified to the Account specified:
FUND DESCRIPTION DEPARTMENT GL ACOUNT # AMOUNT
Refuse Professional Refuse 403-80700-6400 $87,000
Administration Services
Refuse Fund Balance Non -Departmental 403-90000-3001 ($87,000) Administration
The Mayor shall sign this Resolution, and the City Clerk shall attest and certify to the passage and adoption thereof.
Resolution No. R-2026-29
4 APPROVED and ADOPTED this 19th day of May 2026.
Chad P. Wanke, Mayor
Attest:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 19th of May 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution No. R-2026-29
5 AMENDMENT NO. 5 TO
PROFESSIONAL SERVICES AGREEMENT
PROVISION OF SB 1383 CONTRACTING ASSISTANCE SERVICES WITH
HF&H CONSULTANTS, LLC
This Amendment No. 5 ("Amendment") to Professional Services Agreement is made and entered into effective the 19th day of May 2026, by and between the CITY OF PLACENTIA, a Charter City and Municipal Corporation ("CITY"), and HF&H CONSULTANTS, LLC, a California Limited Liability corporation (hereinafter "CONSULTANT"). CITY and CONSULTANT are sometimes hereinafter individually referred to as "Party" and or collectively referred to as the "Parties."
A. Recitals.
(i) CITY and CONSULTANT entered into a Professional Services Agreement ("Agreement") effective July 1, 2020, through which CONSULTANT has been providing professional services as more fully explained in the Scope of Services attached to the Agreement as Exhibit "A".
(ii) The Parties now seek to amend the Agreement to increase the compensation by an additional $150,000 for additional consulting services related to SB 1383 compliance assistance and contract negotiations.
(iii) All legal prerequisites to the making of this Amendment have occurred.
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:
B. Amendment to Agreement.
1. Section 2.0, Paragraph 2.1 of the Agreement is hereby amended to read as follows:
2.1. Compensation. Consultant shall be paid in accordance with the revised fee schedule set forth in Exhibit "A". Consultant's total compensation shall not exceed Three Hundred Ninety - Four Thousand Nine Hundred and Ninety -Nine Dollars ($394,999).
2. Except as specifically modified herein, all of the terms, conditions and provisions of the Agreement shall remain in full force and effect.
3. The Agreement, all amendments together with this Amendment No. 5 and all Exhibits attached thereto, constitutes the entire Agreement between the Parties and supersedes all prior negotiations, arrangements, representations, and understandings, if any, made by or between the Parties with respect to the subject matter hereof. No amendment or other modification of the Agreement, as modified by this Amendment No. 5 shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.
4. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliver this Amendment No. 5 and that such execution is binding upon the entity for which he or she is executing this document.
IN WITNESS WHEREOF, the Parties have caused Amendment No. 5 to the Consulting Services Agreement are to be executed as of the day and year first above written.
6 CONSULTANT CITY OF PLACENTIA
By: a � 7Ur By:
Laith Ezzet Jennifer Lampman
Senior Vice President City Administrator
ATTEST:
By:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
By:
Christian L. Bettenhausen, City Attorney
7 Oil
April 14, 2026
Cheryl Miller
Environmental Services Coordinator
Matthew Di Mario
Management Analyst
City of Placentia Public Works Department
401 E. Chapman Ave.
Placentia, CA 92870
HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
Sent via email: cmiller(53vlacentia.ora and mdimario(53vlacentia.ora Subject: Proposal to Provide Recycling, Organics, and Solid Waste Consultant Services
Dear Cheryl Miller and Matthew Di Mario,
HF&H Consultants (HF&H) is pleased to submit this updated scope of work to the City of Placentia (City) to continue to provide recycling, organics, and solid waste consultant services.
This scope was developed after a call with City staff on Wednesday, April 8, 2026. The intention of this scope is to finalize the negotiations with the City's solid waste hauler, Republic Services (Republic), for a Senate Bill 1383 compliant agreement, provide on-call implementation support services to aid the City in achieving compliance with the State's recycling and organics recycling requirements, and includes continued CalRecycle liaison support with the Jurisdiction and Agency Compliance and Enforcement (JACE) Branch Compliance Evaluation .
Thank you for the opportunity to provide you with this scope. We look forward to an opportunity to continue our partnership with the City. If you have any questions, please contact Haley Kunert at (949) 251-0930 or hkunertCahfh-consultants.com.
Very truly yours,
HF&H CONSULTANTS, LLC
4 0
Laith Ezzet, CMC Haley Kunert
Senior Vice President
Senior Project Manager
8 Section 1: SCOPE OF WORK
Cheryl Miller and Matthew Di Mario
April 14, 2026
TASK 1: SB 1383 CONTRACTING ASSISTANCE
The updated budget is to support the extended timeframe of the negotiations, additional time to analyze and negotiate the contract that was over and above the original cost proposal. The funds will cover additional time due to complexities of negotiations based on programmatic assumptions for Senate Bill 1383 (SB 1383) and recycling matters, additional contract language negotiation sessions, internal briefings with City staff, finalizing contract exhibits, draft of the final negotiated agreement, support for drafting a Council staff report, and preparation for participation in a City Council meeting to present draft agreement.
TASK 2: ON-CALL CONSULTANT SUPPORT
HF&H will assist with various recycling, organics, and solid waste related inquiries and tasks that arise from time to time to the extent the project budget supports a request. These tasks will include legislative research, compliance tracking and reporting, and providing general recycling, organics, and solid waste liaison assistance with CalRecycle.
For this task, HF&H may assist through one or more of the following subtasks within the budgetary limitations of the proposal:
2A SB 1383 Contract Oversight and Open Item Monitoring:
Upon City request, support with ongoing SB 1383 contract compliance activities under the current franchise agreement such as monitoring key services and compliance dates, reporting requirements, and specific annual SB 1383 program and educational requirements. 2B Legislative Monitoring:
Track solid waste legislation, regulations, SB 1383 resources, guidance, and funding opportunities, CalRecycle policy decisions, and other solid waste, recycling, and organics issues pertinent to the City. Provide legislative and regulatory updates and discuss significant items at virtual and/or in-person meetings.
2C Monitor Facility and Industry Updates:
Monitor local solid waste, recycling, and organics industry developments that may impact the City, such as the development of composting operations at the Orange County landfills. 2D Implementation Record:
Upon City request, review the City's Implementation Record to assess compliance and identify performance enhancement opportunities.
2E Environmentally Preferable Purchasing Policy Support:
Upon City request, review the City's current Environmentally Preferable Purchasing Policy or Financial Procurement Policy (ies) and identify compliance gaps and strategies for resolution. 9 Cheryl Miller and Matthew Di Mario
April 14, 2026
2F CalGreen and MWELO Support:
Upon City request, review the City's current CalGreen Construction and Demolition and Model Water Efficiency Landscape Ordinances (MWELO) and internal policies for SB 1383 compliance.
2G Self --Haul Program Updates:
Upon City request, review the City's current self -haul program, assess compliance, and identify enhancement opportunities to ensure compliance with SB 1383. 2H CalRecycle Liaison Support:
Upon City request, HF&H will continue to support the City with CalRecycle related inquiries and throughout the City's JACE Compliance Evaluation process.
Upon City request, we will review and provide feedback on a final draft of the Electronic Annual Report and SB 1383 compliance report required by 14 CCR 18994.2. 2I Amended Agreement Transition Support:
Upon City request, we will support the transition from the current agreement to the amended and restated agreement. Support may include review of the hauler's implementation plan, coordination with designated City stakeholders, and facilitation of knowledge and documentation transfer for inclusion in the Implementation Record, as directed by the City. 21 Other On -Call Activities:
Other ongoing on-call recycling, organics, and solid waste activities that may be identified during the course of the term and within budgetary limitations. 10 Cheryl Miller and Matthew Di Mario
April 14, 2026
Section 2: Fee Proposal
Services will be performed on a time -and -materials basis, not to exceed the available budget without written City approval and aligned with the applicable project -year (Table 1 below).
Based on discussions with City staff on April 13, 2026, we understand the City's preference is a three-year term (aligned with the fiscal year), with two optional extension periods exercisable at the City's discretion.
Table 1: Project Year Schedule
C
Year 1
Year 2
Year 3
Optional Year 4
Optional Year 5
City Council Execution to June 30, 2027
July 1, 2027 to June 30, 2028
July 1, 2028 to June 30, 2029
July 1, 2029 to June 30, 2030
July 1, 2030 to June 30, 2031
The proposed budget is summarized in Table 2 below and supported by the workplan in Table 4 (see Page 5) for Project Year 1. The combined budget for Project Years 1, 2, and 3 is $376,000. The budget for Optional Year 4 is $129,400 and for Optional Year 5 is $134,600.
The total combined budget with the Optional Years is $640,000. We will bill the City once per month based on the number of hours worked and expenses incurred. Payment is due within 30 days of invoicing.
Table 2: Annual Budget per Project Year
rrtitz. 1, r• I i1a ua [.7. .i.1 tc L•1 X11.1•
On -C • II*
Year 1: Contracting & On -Call Support
Year 2: On -Call Support
Year 3: On -Call Support
Subtotal for 3 Years
Optional Year 4: On -Call Support
Optional Year 5: On -Call Support
Total for Years
$17,000
$17,000
$17,000
*Includes annual adjustment of 4.0% each Fiscal Year.
PROFESSIONAL FEES
$115,000
$119,600
$124,400
$359,000
$129,400
$134,600
$623,000
$132,000
$119,600
$124,400
$376,000
$129,400
$134,600
$640,000
Hourly rates for professional and administrative personnel through December 31, 2026, are the same as under our current professional services agreement adjusted January 1 and are listed again on the following page:
11 Cheryl Miller and Matthew Di Mario
April 14, 2026
Table 3: Schedule of Hourly Rates (Calendar Year 2026)
Position Rate*
Executive
Senior Project Manager
Senior Associate/Project Manager
Associate Analyst
Assistant Analyst
Administrative Staff
$377 - $379
$319 - $345
$233 - $308
$200 - $227
$173 - $195
$135 - $173
*Hourly rates adjust each January 1 by 4.0%.
DIRECT EXPENSES
Standard charges for common direct expenses are as follows:
Automobile Travel Prevailing IRS mileage rate
Airfare and Public Transit Actual Cost
Postage, overnight mail, couriers, and other out-of-pocket costs Actual Cost An estimated workplan for Project Year 1 is provided in Table 4 below.
Table 4: Estimated Workplan for Project Year 1*
CU YCUN
> GI - u i+
= O a
CO
ti
u 4 A d O
. x
UJ • in F rn d d Total Proposed
$379 $319 $245 $225 $160 Hours Cost
Task 1
Contracting Assistance (Year 1 Only)
Support with Finalizing Negotiations and Amended Agreement 2 14 20 Prepare and Develop City Council Presentation 2 6 2
Attend and Present at City Council Meeting on June 2nd 0 5 0 Support with Other Agreement Matters (Review Staff Report 0 6 0 and Ordinance for Collection Hours)
Task 1
Task 1 Expenses
Task 1 Total Fees and Expenses
Task 2 On -Call Consultant Support - Estimated Hours
Support with On -Call Recycling, Organic Materials, and Solid 32 100 140 150 16 438 $114,638 Waste Matters
O
0 O
O
0 1
0 0
36 11
5 6
4 31 22 0 1 52
510,124
53,322
S1,595
51,914
$16,955
$45
$17,000
Task 2
Task 2 Expenses
Task 2 Total Fees and Expenses
Total Costs
Project Year 1 Total Budget
"Hours may be shifted among staff and tasks based on City requests. 32 100 140 150 16 438
$114,638
$362
$115,000
$132,000 1
12