March 25, 2025
Economic Development
DATE: March 25, 2025
TO: Mayor Martinez and Members of the City Council
FROM: Nannette Beacham, Economic Development Director
Samantha Carr, Environmental Manager
Yahna Williamson, Management Analyst
Subject: Contract Amendment No. 3 with R3 Consulting
FINANCIAL IMPACT: The proposed contract will have no additional impact on the Fiscal Year 2024-25 Adopted City Budget. (Account
String 01362765-400201-2GI01)
PREVIOUS COUNCIL
ACTION:
July 19, 2022
July 11, 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 it is set to expire June 30, 2025. The City Council directed City staff to initiate a competitive solicitation process for a new Collection Agreement. On July 2, 2024, City staff initiated negotiations with the company that submitted the top
ranked proposal, Richmond Sanitary Services Inc, a
subsidiary of Republic Services. R3 Consulting, Inc. has been supporting the City with the negotiations process.
AGENDA
REPORT
March 25, 2025
RECOMMENDED ACTION: APPROVE a third amendment to the contract with R3 Consulting Group, Inc amending the service plan to
continue supporting the City with the Collection
Agreement negotiations and complete a franchise fee
cost-recovery analysis, increasing the contract payment limit by $60,000, to a new payment limit of $328,185, and extending the contract term expiration to June 30, 2026 – Economic Development Department (Nannette Beacham
510-621-1306/Samantha Carr 510-620-5407/Yahna
Williamson 510-620-6574).
DISCUSSION:
The City of Richmond’s solid waste and recycling services are subject to 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 City of Richmond entered into an exclusive Solid Waste Collection Franchise Agreement with Richmond Sanitary Service, a subsidiary of Republic Services, in 1985. The Agreement includes the collection of solid waste, recycling, and organic waste generated within City boundaries and is set to expire June 30, 2025.
On January 19, 2022, City staff members released an request for qualification (RFQ) to solicit a consultant to provide professional services to analyze the City’s current solid waste collection franchise agreement and advise a course of action. On July 19, 2022, the City Council approved the contract award to R3 Consulting, Inc. (Attachment 1).
The City Council directed City staff members to initiate a competitive solicitation process for the Collection Agreement. On July 2, 2024, City staff were authorized to enter into negotiations with the company that submitted the top ranked proposal, Richmond Sanitary Services Inc, a subsidiary of Republic Services. In order for R3 Consulting, Inc to continue to support the City with the negotiation process, City staff recommend amending the contract to increase the not-to-exceed amount by $60,000 and extend the term to end June 30, 2026 (Attachment 4). Upon completion, City staff will return to the City Council with final terms and rates for City Council approval. Additionally, R3 Consulting Inc. will be completing a Franchise Fee Cost-Recovery Analysis.
SYNERGISTIC POLICIES:
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
March 25, 2025
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 – R3 Contract First Amendment
Attachment 3 – R3 Contract Second Amendment
Attachment 4 – Proposed Third R3 Contract Amendment