CITY OF RICHMOND
CONTRACT AMENDMENT
Department: Project Manager:
Project Manager E-mail:
Project Manager Phone No:
P.R. No: Vendor No: P.O./Contract No:
Description of Services:
Amendment No. ___ modifies the: (2nd or subsequent amendments attach Amendment History page)
Term, Payment Limit and Service Plan
Payment Limit and Service Plan
Term and Service Plan
Service Plan
The parties to this Contract Amendment do mutually agree and promise as follows:
1. Parties. The parties to this Contract Amendment are the City of Richmond, California, a municipal corporation (City), and the following named Contractor:
Company Name:
Street Address:
City, State, Zip Code:
Contact Person:
Telephone: Email:
Business License No: / Expiration Date:
A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:]
[ ] other [specify:]
2. Purpose. This Contract Amendment is being entered into to amend the Contract between City and Contractor which was approved by the City Council of the City of Richmond or executed by the City Manager on , which original term commenced on and terminates with an original contract payment limit of $ . Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.
3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments thereto, which are unaffected by this Contract Amendment.
Contract Amendment/EJ/TE 09-26-07
4. Amendment Provisions. This Contract Amendment is subject to the Amendment Provisions attached hereto, which are incorporated herein by reference, and which control over any conflicting provisions of the Original Contract, or any amendment thereto.
5. City of Richmond Business License Active Status Maintained. Pursuant to Municipal Code Section 7.04.030, the Contractor must maintain its City of Richmond business license for this Contract Amendment to be deemed to be in effect.
6. Insurance Coverage Updated and Maintained. Pursuant to the Original Contract, the Contractor shall provide the City with updated insurance certificates, and the Contractor shall maintain insurance coverage, for this Contract Amendment to be deemed to be in effect.
7. Signatures. These signatures attest the parties’ agreement hereto:
CITY OF RICHMOND, CALIFORNIA
a municipal corporation
By _______________________
Title:
I hereby certify that the Original Contract
and this Amendment have been approved
by the City Council or executed by the City
Manager.
By _______________________
City Clerk
Approved as to form:
By_______________________
City Attorney
List of Attachments:
1. Amendment Provisions
2. Updated Insurance Certificates
CONTRACTOR:
______________________________
(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)
By____________________________
Title:________________________
(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)
By:___________________________
Title:________________________
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President
and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313.
Contract Amendment between the City of Richmond and
Amendment No. P.O./Contract No.
AMENDMENT PROVISIONS (TERM, PAYMENT LIMIT AND SERVICE PLAN)
1. Paragraph 2 (Term) of the Original Contract is hereby amended to extend the Contract term. Paragraph 2 of the Original Contract is amended to read as follows:
"2. Term. The effective date of this Contract is
____________________________________________________________ (Insert original contract commencement date)
and it terminates
___________________________________________________.
(Insert new contract termination date)
unless sooner terminated as provided herein."
2. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by $ . Paragraph 3 of the Original Contract is amended to read as follows:
"3. Payment Limit. City's total payments to Contractor under this Contract shall not exceed $ including expenses."
“The City of Richmond shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the City Manager if the total Contract amount does not exceed $10,000 or without the prior approval of the City Council if the total Contract amount is over $10,000.”
3. The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following tasks and/or services:
Contract Amendment/EJ/TE 9-26-07
Contract Amendment between the City of Richmond and
Amendment No. P.O./Contract No.
AMENDMENT PROVISIONS (SERVICE PLAN)
(CONTRACTOR’S OBLIGATION’S)
The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following tasks and/or services:
Contract Amendment/EJ/TE 9-26-07
Contract Amendment between the City of Richmond and
Amendment No. P.O./Contract No.
AMENDMENT PROVISIONS (AMENDMENT HISTORY)
The first Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):
Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.
Term Amendment (insert new termination date):________________________
Service Plan
The second Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):
Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.
Term Amendment (insert new termination date):________________________
Service Plan
The third Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):
Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.
Term Amendment (insert new termination date):________________________
Service Plan
The fourth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):
Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.
Term Amendment (insert new termination date):________________________
Service Plan
The fifth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):
Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.
Term Amendment (insert new termination date):________________________
Service Plan
City of Richmond | Various Services 1
February 13, 2025
Ms. Samantha Carr
Environmental Manager
City of Richmond
submitted via email: [email protected]
SUBJECT: Franchise Agreement Negotiations and Franchise Fee Study Consulting Services – R3 Proposal
Dear Ms. Carr,
R3 Consulting Group, Inc (R3) is pleased to submit the attached proposal to the City of Richmond (City) to provide Franchise Agreement Negotiations and Franchise Fee Study Consulting Services.
Upon acceptance of this proposal (and subsequent contract amendment), R3 will provide the City with:
1. Franchise Agreement Negotiation Services
R3 is currently contracted with the City to complete competitive procurement via request for proposals process. The original contract amount is nearly expended, and additional contract resources are necessary to complete final negotiations of agreement. The additional contract authorization is necessary because the original amounts contracted were for completion of negotiations for both the City of Richmond and the City of San Pablo, and while negotiations have progressed smoothly with both parties, the original amounts assumed levels of cost-efficiency that have not materialized.
2. Franchise Fee Cost-Recovery Analysis
R3 will research, analyze, and estimate the value of the City’s solid waste management, administration, oversight, compliance, and other expenditures that may be eligible for revenue recovery from solid waste rates via franchise fees. The analysis will rely on financial information provided by the City, including but not limited to internal cost-allocation information, salary and benefit information for positions having responsibility for solid waste management and compliance matters , street sweeping, storm-drain and/or catch basin waste removal, compliance activities, and other associated information that may identified by the City or R3.
The outcome of the analysis will be a set of total calculated annual costs for solid waste management, administration, oversight, compliance, and other activities. This calculation will represent the fee amount available to offset documentable City expenditures.
3. Franchise Fee Property Value Analysis
R3 will research, analyze, and estimate the value of the City-government property rights conveyed to the City’s contracted solid waste provider(s) that may be eligible for recovery via franchise fees.
The analysis will be based on the estimated amounts of time that solid waste containers are placed in the public right-of-way for collection as well reasonable estimates of the rental value for that unique use of the public right-of-way. This analysis may also include other significant uses of government property that may be identified.
The outcome of this analysis will be an estimated annual figure for the rental value associated with the use of City government property and will represent the fee amount available to compensate the City for the use of public property.
City of Richmond | Various Services 2
4. Vehicle Impact Analysis
R3 will research, analyze, and estimate the value of the impact that solid waste collection vehicles operated by the City’s contracted solid waste service provider(s) have on the City’s streets.
The analysis will be based on the value of the City’s streets, wear and tear to them, and the estimated proportionate impact from solid waste collection vehicles. Information used in this analysis may include but is not limited to the number of street miles by type, vehicle trips on streets by vehicle type, pavement management plans, and other associated information provided by the City.
The outcome of this analysis will be a calculated annual proportionate allocation of maintenance needs attributable to solid waste collection vehicles. The resultant calculation will represent the amount that may be justified to offset vehicle impacts to streets to the extent allowed by law. Changes to the State Vehicle Code may be needed to recover these costs.
5. Franchise Fee Revenue Analysis
R3 will research, analyze, and summarize current fee revenues paid to City by contracted solid waste providers and will compare those values to the sum of the cost-recovery and property value fee estimates per the above. Differences between current franchise fee revenues, fees collected through other mechanisms (e.g., AB 939 or SB 1383 fees) and those resulting from our analysis will be identified and quantified. R3 makes no guarantee that the analytical results will support existing City fee revenue generation.
6. Franchise Fee Findings
R3 will provide the City (through its legal counsel) with a draft written report of its findings regarding the results of our analysis and comparison to current fee revenues. We will work with the City staff and City legal counsel to revise and finalize the report for City consideration. One round of revisions in response to comments is included in our pricing.
7. Meetings
R3 will periodically meet with City staff throughout the engagement. This will include an initial kick-off meeting, limited check-in meetings, and a meeting to review draft results. Public meetings are not included in the base pricing, but our team can be available, on an hourly basis, to attend public meetings if necessary. All meetings will be conducted virtually.
1504 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 f 916.782.7824 | www.r3cgi.com 3 Timeline & Cost
R3 proposes a contract amendment of $60,000 for the work included in this proposal. For cost-effective service delivery, R3’s pricing proposal is fixed. A breakdown of costs by activity are provided in Table 1, below. Any additional consulting services beyond those proposed (including engagement as an expert witness) will be charged at our standard rates shown in Table 2, below.
Table 1: Breakdown of Costs
FEE TYPE DUE DATE COST
Franchise Agreement
Negotiation Services Fixed payment upon completion of negotiations of final Collection Agreement $ 15,000 Franchise Fee Study Fixed payments in three increments of $10,000, due within 30-days of invoicing (upon notice to proceed, with draft results, and upon project completion) $ 30,000 Contingency $ 15,000
Table 2: Standard Rates
CLASSIFICATION RATE
Principal / Sr. Director $ 325 per hour
Director $ 290 per hour
Sr. Managing Consultant $ 250 per hour
Managing Consultant $ 225 per hour
Sr. Consultant $ 210 per hour
Consultant $ 190 per hour
Associate Consultant $ 175 per hour
Expert Witness 1.5x Rates Listed Above
REIMBURSABLE COSTS
Consultants/Subcontractors Cost plus 10%
Lodging and meals Direct cost
Travel - Private or company car Current Federal Rate
Travel - Other Direct cost
Delivery and other expenses Direct cost
* * * * * We appreciate the opportunity to submit this proposal to the City. If you have questions or need additional information, please contact me.
Sincerely,
Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | [email protected]