July 11, 2023
Economic Development
DATE: July 11, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nannette Beacham, Director of Economic Development
Samantha Carr, Environmental Manager
Subject:
R3 Contract Amendment and Solid Waste Franchise
Request for Proposals (RFP) partnership with the City of San Pablo.
FINANCIAL IMPACT: The contract amendment will be funded by account string 01362765-400201-2GI01. Additionally, 50 percent of the
costs will be shared with the City of San Pablo.
PREVIOUS COUNCIL
ACTION:
July 19, 2022, May 2, 2023
STATEMENT OF THE
ISSUE:
The City of Richmond entered into an exclusive Solid
Waste Collection Franchise Agreement (Collection
Agreement) with Richmond Sanitary Service, a
subsidiary of Republic Services, in 1985 and is set to
expire June 30, 2025. City Council directed City staff
members to initiate a competitive solicitation process for the Collection Agreement. The development of the RFP
requires an amendment to R3 Consulting’s contract.
AGENDA
REPORT
July 11, 2023
RECOMMENDED ACTION: AUTHORIZE the city manager to negotiate and execute a Memorandum of Understanding (MOU) between the
City of Richmond and the City of San Pablo to develop a joint Request for Proposals (RFP) for a new Solid Waste Collection Agreement with the costs of developing the
proposal divided equally between the two cities; and
APPROVE a first amendment to the contract with R3
Consulting increasing the payment limit in an amount not to exceed $131,450, for a total contract amount not to
exceed $268,185, expanding the scope of services to
facilitate the joint Request for Proposals, and extending the term of the contract to June 30, 2024; and DIRECT
the city attorney to explore mechanisms associated with addressing impacts of hosting the solid waste facilities - Economic Development Department (Shasa
Curl/Nannette Beacham/Samantha Carr 510-620-5407).
DISCUSSION:
The City of Richmond’s solid waste and recycling services are provided by two agreements with Republic Services: Collection Agreement and Post-Collection Agreement. Additionally, the City contracts with Golden Bear Transfer Services, Inc. (operated by Republic Services) for solid waste transfer services. The Golden Bear Transfer Station and the Organics Processing Facility located on top of the closed landfill are located within City limits. The City limits border the West County Integrated Resource Recovery Facility (IRRF) and Household Hazardous Waste Recovery facility.
The Collection and Post-Collection Agreements are set to expire June 30, 2025, and the transfer services agreement is set to expire December 31, 2025. Though these expiration dates are two years away, the process of arranging for ongoing solid waste services generally takes two years or more to ensure time for a transparent comprehensive public process, fulfillment of community priorities and state mandates, delivery of new capital, and smooth transition to successful delivery of programs and services.
On July 19, 2022, the City of Richmond entered into a contract with R3 Consulting Group, Inc. to provide analysis and recommendations regarding the City’s Solid Waste Franchise Agreement (Attachment 1). The contract’s scope of work also includes the review, analysis, and recommendations for the City’s other solid waste-related agreements. On May 2, 2023, the City of Richmond City Council directed City staff members to initiate a competitive solicitation process for their solid waste Collection Agreement. R3 has provided a revised budget and scope of work to implement City Council’s direction (Attachment 2).
On May 15, 2023, the City of San Pablo City Council directed their City staff members to initiate a competitive solicitation process for their solid waste Collection Agreement.
July 11, 2023
The City of San Pablo has requested to partner with the City of Richmond on the process and share costs (Attachment 3). Both cities share geographical boundaries, have similar composition of waste streams, and are subject to increased State mandated regulatory requires under Senate Bill (SB) 1383. This partnership would be memorialized in a Memorandum of Understanding (MOU) between the City of Richmond and the City of San Pablo. Staff is requesting that Council delegate authority to the City Manager to negotiate and execute the MOU which will include a 50/50 cost sharing arrangement for the services rendered by R3 Consulting for developing a joint RFP.
POLICY SYNERGIES
Climate Action Plan
Strategy SW 1: Establish a Zero Waste Framework
Strategy SW 2: Increase Participation in Recycling Programs and Incentives Strategy SW 3: Supportive Garbage Collection Service Rates and Schedules
General Plan 2030
Policy EC3.3 Solid Waste Reduction and Recycling. Promote waste reduction and recycling to minimize materials that are processed in landfills
DOCUMENTS ATTACHED:
Attachment 1 – R3 Contract
Attachment 2 – Proposed R3 Contract Amendment
Attachment 3 – City of San Pablo Letter