CITY OF POMONA
COUNCIL REPORT
February 27, 2023
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 2022-23 OPERATING BUDGET BY APPROPRIATING $245,000 FROM FRANCHISE FEE FUNDED PROGRAMS FUND RESERVES TO AMEND THE CURRENT AGREEMENT WITH R3 CONSULTING GROUP, INC., AND APPROVE A SOLE SOURCE AGREEMENT WITH R3 CONSULTING GROUP, INC. TO ASSIST WITH TRANSITION TO EXCLUSIVE HAULER RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2023-27 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2022-23 OPERATING BUDGET BY APPROPRIATING $245,000 FROM THE FRANCHISE FEE FUNDED PROGRAMS FUND RESERVES; Approve an amendment to the current agreement between R3 Consulting Group, Inc. (R3) and the City for an additional amount not-to-exceed $50,000 to allow for the payment of additional work associated with the procurement process of the City’s Residential and Commercial Garbage, Recyclable Material, and Organic Waste Collection Services Request for Proposal; Approve a 12-month Sole Source Agreement with R3 in an amount not-to-exceed $195,000, effective upon approval, to assist the City with activities related to the transition to the exclusive hauler; and Authorize the City Manager to execute the amendment and new agreement subject to review by the City Attorney.
EXECUTIVE SUMMARY:
Adoption of the Resolution (Attachment No. 1) will appropriate $245,000 from the Franchise Fee Funded Programs Fund Reserves to: a) allow for payment for additional work in the amount of $50,000 associated with the procurement process for the City’s Residential and Commercial Garbage, Recyclable Material, and Organic Waste Collection Services Request for Proposal (Solid Waste RFP), and b) approve a 12-month Sole Source Agreement with R3, effective upon approval, in an amount not-to-exceed $195,000 to assist with activities related to the transition of solid waste services to Athens (exclusive hauler). As part of the franchise agreement, the total amount of $245,000 will be reimbursed by Athens.
FISCAL IMPACT:
There is sufficient fund balance in the Franchise Fee Funded Programs Fund Reserves (Fund 587) to cover the expense of this contract amendment and the Sole Source Agreement, all of which will be reimbursed by Athens thirty (30) days from the effective date of the franchise agreement.
PREVIOUS RELATED ACTION:
On January 6, 2020, the City awarded an agreement to R3 Consulting Group, Inc. for a Solid Waste Rate and Cost of Service Study in an amount not-to-exceed $166,250. On January 10, 2022, the City Council approved an amendment to the agreement between the City and R3 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.
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. The City decided to pursue a Solid Waste RFP to ultimately determine whether to keep the residential portion of its solid waste enterprise in-house or award an exclusive franchise agreement to one hauler.
The scope of R3’s agreement was extended to include developing the procurement documents (RFP) and additional hours needed to complete the procurement process. However, since the procurement process took longer than anticipated, the current agreement needs to be amended to include the increased cost of services in the amount of $50,000.
Further, R3 will assist the City with activities related to the transition of the City’s municipal residential collection operation and consolidation of its commercial operations to the exclusive hauler, Athens Services. R3 has provided direct insight into various components of the City’s solid waste landscape and will support the City in navigating the successful transition to Athens. The implementation of Athens’ Transition Plan includes the following:
Task 1 – Review/Assessment of Athens’ Transition Plan and identify all key milestones and resources in managing the transition.
Task 2 - Transition Schedule and Milestone Tracker to use throughout the duration of the transition period.
Task 3 - Meeting Preparation and Follow-Up
Task 4 - Compliance Management Tool and City Staff Training Task 5 – Cost-Recovery Analysis, Property Value Analysis, Fee Analysis, Vehicle Impact Analysis (if needed), Findings, and Meetings Task 6 - SB 1383 Review
Task 7 - Proposition 218 Assistance
Task 8 - Rate Adjustment Application Review
In order to successfully complete the entire transition process associated with outsourcing the City’s residential and commercial solid waste enterprise to Athens, it is recommended that Council approve the recommendations. R3 has been assisting the city with the outsourcing process and to continue supporting the transition to the exclusive hauler, it is necessary for R3 to continue the work as a Sole Source procurement.
Approving the 12-month Sole Source Agreement with R3 is authorized under City Code Section 2-994 – Sole and Single Source Procurement. - A contract may be awarded as a sole or single source without competition upon review and verification and determined to be in the City’s best interest. Sole or single source requests over $100,000 will be reviewed by the Purchasing Manager, Finance Director, and City Manager and approved by the City Council.
Prepared by:
Maritza Sosa-Nieves, Senior Management Analyst
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2023-27
Appropriate $245,000 from Franchise Fee Funded Programs Fund Reserves and Amend Contract with R3 Consulting Group, Inc.