CITY OF POMONA
COUNCIL REPORT
September 16, 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 $30,000 FROM THE REFUSE ADMINISTRATION FUND BALANCE TO ALLOW FOR A SOLID WASTE HOST FEE STUDY RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2024-146 - A Resolution OF THE CITY COUNCIL OF THE CITY OF POMONA, california, AMENDING THE FISCAL YEAR 2024-25 OPERATING BUDGET BY APPROPRIATING $30,000 FROM THE REFUSE ADMINISTRATION FUND BALANCE TO ALLOW FOR A Solid Waste HOST Fee Study; Approve a sole source agreement with R3 Consulting Group, Inc. (R3), in the amount of $30,000 through April 30, 2025, to complete a solid waste host fee study; and Authorize the City Manager, or designee, to execute any amendments subject to review by the City Attorney.
EXECUTIVE SUMMARY:
Approval of the proposed recommendations will allow for the completion of a Solid Waste Host Fee Study to determine an appropriate host fee to offset impacts on City streets due to the operations of the Grand Central Recycling and Transfer Station, Inc. in the City.
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 $30,000 from the Refuse Administration Fund Balance to Fund 145-2505-52285-00000, Refuse Administration for the completion of a Solid Waste Host Fee Study.
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 January 22, 2024, the City Council did not approve a second amendment to the current agreement between the City and Grand Central Recycling and Transfer Station, Inc. (Grand Central), to extend the term of the agreement. The City Council requested that Staff look into the amount of the annual franchise fee paid by Grand Central.
On February 26, 2024, the City Council approved a 4-month extension to the sole source agreement with R3 to allow for 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.
On August 5, 2024, the City Council approved a six (6)-month extension to the sole source agreement with R3 to allow for the completion of the Franchise Fee study.
DISCUSSION:
R3 has provided various consulting services related to the City’s solid waste program and is very familiar with the specific issues regarding solid waste in the City of Pomona. On January 22, 2024, staff recommended the approval of a second amendment to the franchise agreement between the City and Grand Central. The City Council did not approve this recommendation and asked that staff examine an appropriate host fee to offset impacts on City streets due to the operations of the Grand in the City. R3 was asked to provide a quote for a host fee study that would include the following services:
Cost Recovery Analysis: Research, analyze, and estimate the value of the City’s solid waste management, administration, oversight, compliance, and other expenditures associated with the transfer station.
Pavement Impacts Analysis: estimate the value of the impact that vehicles driving to and from the transfer station have on the City’s streets.
Property Use Charge Analysis: Estimate the value of the City-government property rights conveyed to Grand Central that may be eligible for recovery via the host fee.
Research Comparable Facilities’ host fees.
Reporting: Overview of various formats and mechanisms the host fee may take.
Meetings: Meet periodically with staff throughout the engagement.
The total cost for this analysis is $30,000 and is anticipated to be completed within six (6) months of contractual engagement. Per City Code Sec. 2-994, 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.
Prepared by:
Shandy Dittman, Public Works Fiscal and Project Manager ATTACHMENT:
Attachment No. 1 – Resolution No. 2024-146
Amending FY 2024-25 Operating Budget by Appropriating $30,000 for a Solid Waste Host Fee Study