CITY OF POMONA
COUNCIL REPORT
January 10, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: RESOLUTION AMENDING THE FISCAL YEAR 2021-22 OPERATING BUDGET BY APPROPRIATING $250,000 FROM FRANCHISE FEE FUNDED PROGRAMS FUND BALANCE AND AMEND THE CURRENT AGREEMENT WITH R3 CONSULTING GROUP, INC.
RECOMMENDATION: It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2022-04 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2021-22 OPERATING BUDGET BY APPROPRIATING $250,000 FROM THE FRANCHISE FEE FUNDED PROGRAMS FUND BALANCE; and Approve an amendment to the current agreement between the City and R3 Consulting Group, Inc. to allow for additional work associated with the preparation and administration of the City’s Request for Proposal for Residential and Commercial Garbage, Recyclable Material, and Organic Waste Collection Services for an additional amount not-to-exceed $250,000; and Authorize the City Manager to execute the amendment subject to review by the City Attorney.
EXECUTIVE SUMMARY: Approval of the Resolution (Attachment No. 1) will appropriate $250,000 from the Franchise Fee Funded Programs fund balance to allow for payment to R3 Consulting Group, Inc. for additional work associated with the preparation and administration of the City’s Residential and Commercial Garbage, Recyclable Material, and Organic Waste Collection Services Request for Proposal (RFP). As part of the RFP, this cost would be reimbursed by the selected hauler should the City decide to award an exclusive franchise agreement.
FISCAL IMPACT: There is sufficient fund balance in the Franchise Fee Funded Programs fund balance (Fund 587) to cover the expense of this contract amendment. Should the City determine that it will award an exclusive franchise agreement to a hauler, this additional cost will be reimbursed by the selected hauler.
PREVIOUS RELATED ACTION: On January 6, 2020, the City awarded an agreement to R3 Consulting Group, Inc. (R3) in an amount not-to-exceed $166,250 to prepare a Solid Waste Rate and Cost of Service Study. On November 1, 2021, the City Council approved an RFP process for a franchise agreement for exclusive collection, processing, recycling, and disposal of residential and commercial garbage, recyclable material, and organic waste collection. On December 6, 2021, the City Council received and filed “Follow-Up Questions and Answers from the November 1, 2021 City Council Meeting Regarding Item 13, ‘Development of a Request for Proposal for Residential and Commercial Solid Waste, Recyclable Materials, and Organic Waste Collection,’” and reaffirmed their November 1, 2021 approval of the RFP process.
DISCUSSION: On January 6, 2020, the City awarded a contract to R3 to perform a Solid Waste Service Rate Study, Cost of Service and Fee Study, and Hauler Audit. The purpose was to conduct a comprehensive analysis of the City’s residential, commercial, and industrial solid waste and recycling rates, along with associated fees for service impacts, recycling, green waste diversion, and composting, that would sustain the enterprise while protecting the interests of the community and to analyze the effects of future regulations, particularly the effects of SB 1383. Since then, the City has decided to go forward with an RFP process and will be enlisting R3’s assistance for this additional work.
The scope of R3’s current agreement extends to the creation of the procurement documents (RFP). It does not extend to the additional services that will be needed to complete the procurement process. These additional services include:
RFP Process Assistance
Conduct interviews with proposers and complete reference checks Assist the City with completing the evaluation of proposals Attend City Council meeting to present RFP evaluation results Assistance in Preparing the Final Agreement:
Prepared by:
_____________________________
Shandy Dittman
Senior Management Analyst
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-04
Appropriate $250,000 from Franchise Fee Funded Programs Fund Balance and Amend R3’s Contract