CITY OF POMONA
COUNCIL REPORT
August 5, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: RESOLUTION TO AMEND THE FISCAL YEAR 2024-25 OPERATING BUDGET BY APPROPRIATING $6,000 FROM THE REFUSE ADMINISTRATION FUND BALANCE TO ALLOW FOR THE COMPLETION OF THE SOLID WASTE FRANCHISE FEE STUDY AND APPROVE EXTENSION TO AGREEMENT WITH R3 TO FINALIZE THE STUDY RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2024-118 - A Resolution OF THE CITY COUNCIL OF THE CITY OF POMONA, california, AMENDING THE FISCAL YEAR 2024-25 OPERATING BUDGET BY APPROPRIATING $6,000 FROM THE REFUSE ADMINISTRATION FUND BALANCE TO ALLOW FOR THE completion of the Solid Waste Franchise Fee Study; Approve an extension to the agreement with R3 Consulting Group, Inc. through December 31, 2024 to finalize tasks related to the solid waste franchise fee study; and Authorize the City Manager, or designee, to execute the amendment subject to review by the City Attorney.
EXECUTIVE SUMMARY:
Approval of the proposed recommendations will allow R3 Consulting Group, Inc. (R3) to complete the Solid Waste Franchise Fee Study. This Study was part of the 12-month sole source agreement with R3 dated March 1, 2023, to assist with the transition to the exclusive solid waste hauler. The Solid Waste Franchise Fee Study is one of eight tasks outlined in the agreement.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☒ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
Approval of the resolution (Attachment No. 1) will amend the FY 2024-25 Operating Budget by appropriating $6,000 from the Refuse Administration Fund Balance to Fund 145-2505-52285-00000, Refuse Administration, to pay the outstanding contract amount. The outstanding balance on the contract is $55,017. While R3 has not surpassed the stipulated contract amount, Staff did not anticipate extending the contract into FY 2024-25 at an amount exceeding $50,000. Consequently, an additional appropriation is necessary to fulfill the remaining contractual obligations.
PREVIOUS RELATED ACTION:
On January 6, 2020, the City Council awarded an agreement to R3 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.
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.
On February 26, 2024, the City Council approved a 4-month extension to the sole source agreement with R3 to allow the completion of outstanding tasks related to the transition to the exclusive hauler and implementation of Senate Bill 1383 activities, including the Solid Waste Franchise Fee Study.
DISCUSSION:
On January 6, 2020, the City Council awarded a contract to R3 to perform a Solid Waste Service Rate Study, Cost of Service and 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.
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. R3 has provided direct insight into various components of the City’s solid waste landscape and supported the City in navigating the transition to Athens Services. The transition plan’s implementation included eight (8) tasks, one being the Solid Waste Franchise Fee Study (i.e., Task 5).
Within the 12-month agreement term, R3 completed most tasks; however, additional time was needed to finalize outstanding activities. On February 26, 2024, the City Council approved a 4-month contract extension to allow R3 to finish pending tasks. R3 will soon complete the Solid Waste Franchise Fee Study and requires more time. Staff recommends approval of a 6-month contract extension to allow R3 to complete the Solid Waste Franchise Fee Study.
ATTACHMENT:
Attachment No. 1 – Resolution No. 2024-118
Prepared by:
Maritza Sosa-Nieves, Senior Management Analyst
Amending FY 2024-25 Operating Budget by Appropriating $6,000 for the Completion of the Solid Waste Franchise Fee Study