TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: December 11, 2024
SUBJECT: APPROVAL OF AMENDMENT NO. 2 WITH ECONOMICS,
INC. FOR SOLID WASTE CONSULTING SERVICES
EXTENDING THE TERM THROUGH DECEMBER 31, 2025
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
Well-Maintained Infrastructure
BACKGROUND
The City of San Marino has contracted with Athens Services to provide waste collection services for nearly 50 years. The existing Agreement By and Between the City of San Marino and Arakelian Enterprises, Inc., DBA Athens Services, for Solid Waste & Recyclables Collection was entered into on October 1, 2003 and has been amended four times, most recently on October 11, 2023. The most recent Amendment No. 4 was approved to extend the term of the contract for two additional years through December 31, 2025 in order to continue services with Athens while negotiating a new agreement that is compliant with SB 1383, a recent State law that requires the recycling of certain organic materials, including outreach, education, monitoring, reporting, and enforcement provisions.
Given the complexity of solid waste agreements, particularly a new agreement incorporating the necessary SB 1383 provisions, in 2023 the City retained Economics, a solid waste consultant to assist with negotiations. The original Professional Services Agreement (PSA) with Economics was approved with a not to exceed amount of $30,000 in order for the consultant to quickly begin analysis of the existing contract with Athens and assist the City with obtaining Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
the short-term 2-year extension of Athens contract for the negotiations of a new contract before their contract would have expired on October 31, 2023.
Amendment No. 1 to the PSA with Economics was approved on October 11, 2023, increasing the compensation to $210,000 to continue negotiations with Athens for an updated and SB 1383 compliant solid waste and recyclables collection agreement. Economics has been crucial to the negotiations, as they have provided valuable analysis of the existing agreement, helped the City obtain a short-term extension in order to negotiate a new agreement, and have assisted the City with negotiations to this point. As Economics’ Agreement is due to expire on December 31, 2024, staff recommends the City Council approve a contract amendment in order to extend the term of the contract for an additional year through December 31, 2025.
DISCUSSION
The services of Economics are necessary as negotiations with Athens Services for a new solid waste agreement continue. If the negotiations are successful, a new agreement with Athens is expected to be brought to the Council for consideration in early 2025. Economics’ services will also be essential for the implementation phase of a new SB 1383-compliant agreement. As SB 1383 has numerous new requirements, Economics will be able to advise the City during the rollout of the new SB 1383-compliant programs, and also ensure all requirements are being met by both the waste hauler and the City.
Alternatively, if the City and Athens are unable to come to an agreement, the City has the right under the existing contract, to issue a Request for Proposals (RFP) after January 1, 2025 for waste hauling services and begin a competitive, non-exclusive selection process. Should that occur, Economics’ subject matter expertise and experience would be necessary in the drafting of the RFP.
This Amendment No. 2 will extend the term of the agreement with Economics to ensure their services are retained for the next twelve months. Depending on the outcome of the City’s negotiations with Athens, an additional amendment to the agreement with Economics may be requested in the future.
FISCAL IMPACT & PROCUREMENT REVIEW
The adopted FY 24-25 budget includes $100,000 for Economics’ solid waste consulting services in Account No. 101-40-4104-0000 (Contract Engineering Services). Sufficient funds have been budgeted in this account for FY 24-25, and since this contract Amendment includes no additional costs, no additional appropriation is necessary.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends that the City Council approve Amendment No. 2 to the Professional Services Agreement with Economics, Inc. for solid waste consulting services extending the term through December 31, 2025. If the Council concurs, an appropriate motion would be:
“I move to approve Amendment No. 2 to the Professional Services Agreement with Economics, Inc. for solid waste consulting services extending the term through December 31, 2025 and authorize the City Manager to execute the Amendment on behalf of the City.”
ATTACHMENTS
1. Draft Amendment No. 2 with Economics, Inc.
2. Original Agreement with Economics, Inc.
3. Amendment No. 1 with Economics, Inc.