CITY OF POMONA
COUNCIL REPORT
February 5, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, Acting City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: APPROVE EXTENSION TO AGREEMENT WITH R3 CONSULTING GROUP, INC. TO FINALIZE TASKS RELATED TO THE TRANSITION TO EXCLUSIVE HAULER AND IMPLEMENTATION OF SB 1383-RELATED ACTIVITIES RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve extension to the agreement with R3 Consulting Group, Inc. through June 30, 2024, to finalize tasks related to the transition of the City’s municipal residential collection operation and consolidation of its commercial operations to the exclusive hauler, Athens Services, and completion of activities related to the implementation of SB 1383; and Authorize the City Manager, or designee, to execute the amendment subject to review by the City Attorney.
EXECUTIVE SUMMARY:
Approval of the extension of the agreement will allow R3 Consulting Group, Inc. (R3) to complete outstanding tasks related to the City’s transition to the exclusive hauler and implementation of activities related to the implementation of SB 1383.
FISCAL IMPACT:
This extension to the agreement does not require additional funding; therefore, there is no fiscal impact. The remaining contract amount is $31,433, which has been budgeted in 145-2505-52285-00000.
PREVIOUS RELATED ACTION:
On January 6, 2020, the City awarded an agreement to R3 for the preparation of 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.
On February 27, 2023, the City Council approved a 12-month Sole Source agreement with R3 to assist with the transition to the exclusive hauler in an amount not-to-exceed $195,000.
DISCUSSION:
On January 6, 2020, the City awarded a contract to R3 to perform a Solid Waste Service Rate and Cost of Service Fee Study, and Hauler Audit. R3 conducted 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. They also analyzed the effects of future regulations, particularly the effects of SB 1383. In 2022, the City decided to pursue a RFP for exclusive solid waste services and ultimately awarded an exclusive franchise agreement to one hauler.
Further, on February 27, 2023, the City Council approved a 12-month Sole Source agreement with R3 to 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 have supported the City in navigating the successful transition to Athens. The implementation of Athens’ Transition Plan included the following eight (8) tasks:
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 the last 12 months, R3 has been able to complete most tasks; however, additional time is needed to finalize outstanding activities. R3’s 12-month contract expires on February 29, 2024; staff recommends approval of a 4-month contract extension, to June 30, 2024, to allow R3 to complete pending tasks.
Prepared by:
Maritza Sosa-Nieves, Senior Management Analyst
ATTACHMENT:
Attachment No. 1 – Draft R3 1st Amendment
Approve Extension to Agreement with R3 to Finalize Tasks Related to Transition to Exclusive Hauler and SB 1383 Implementation