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Agenda Item 18.
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| City Council Meeting |
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| Subject: |
| Amendment No. 1 to Professional Services Agreement with HF&H Consultants, LLC for Refuse Contract Negotiations and SB 1383 Compliance Assistance in the Additional Amount of $95,000 |
| RECOMMENDATION |
| Approve Amendment No. 1 to Professional Services Agreement (PSA) with HF&H Consultants, LLC for Refuse Contract Negotiations and SB 1383 Compliance Assistance in the Additional Amount of $95,000. |
| BACKGROUND/DISCUSSION |
The City of Brea has an exclusive franchise agreement with Republic Services to provide solid waste and recycling services in the City. In the past four years, the City has undertaken numerous efforts to be in compliance with current state regulations such as AB 341 (Mandatory Commercial Recycling), AB 1826 (Mandatory Organic Commercial Recycling), and AB 1594 (Green Material used as Alternative Daily Cover). In September 2016, Governor Brown signed into law SB 1383, establishing methane emissions reduction targets for short-lived climate pollutants (SLCP) in various sectors of California’s economy. Senate Bill (SB) 1383 establishes a mandated target to achieve a 50 percent reduction in statewide disposal of organic waste from 2014 levels by 2020 and a 75 percent reduction by 2025.
On June 16, 2020 a Professional Services Agreement (PSA) was approved with HF&H Consultants, LLC to provide Solid Waste SB1383 Contract Assistance (see Exhibit A of attached Amendment). Their proposal included three (3) tasks: 1) Contract Profile, 2) Gap Analysis and 3) Contract Negotiations. At that time, Task 3 was for informational purposes only and not part of the original contract. HF&H Consultants, LLC has since worked closely with City staff to successfully complete the first two tasks by comparing the existing refuse agreement to those with modern, state-of-the-art agreements and examining what requirements are needed of the City in order to be in compliance with all SB 1383 provisions. Now that tasks A and B are complete, Amendment No. 1 to the PSA is now proposed for Task C to assist with contract negotiations related to Solid Waste SB 1383 and updated Tasks 1-8 (Exhibit A1 of attached Amendment).
It is strongly recommended that the City continue to utilize the services of HF&H Consultants LLC, acting in an advisory role, to help guide staff’s efforts on critical areas that are beyond staff’s expertise in the waste management industry. The Contractor's detailed cost proposal and scope of work is attached in Exhibit A1 of attached Amendment, and includes assistance in negotiating rates, terms and conditions of desired waste hauling services, as well as additional assistance relating to SB1383 implementation activities.
Below is a list of upcoming major 2021 deadlines related to compliance and implementation of SB 1383 set forth by the state regulatory agency, Cal Recycle. More detailed information for each section is attached in the SB 1383 Summary Checklist in Exhibit B.
| Summary Sections from SB 1383 Checklist (Exhibit B) |
Implementation Deadline |
Council Meeting
Approval Deadline |
| Ordinances & Policies |
01/01/2022 |
12/07/2021 |
| Collection & Processing |
01/01/2022 |
12/07/2021 |
| Edible Food Recovery |
02/01/2022 |
TBD |
| Procurement Requirements |
01/01/2022 |
12/07/2021 |
| Enforcement & Penalties |
01/01/2022 |
12/07/2021 |
| Education & Outreach |
02/01/2022 |
12/07/2021 |
| Record Keeping & Reporting |
04/01/2022 |
12/07/2021 |
| Capacity Planning (County responsibility) |
w/in 60 or 120 days of County request |
TBD |
Other North Orange County cities such as Anaheim, Fullerton, Garden Grove, Placentia and Yorba Linda have been using, and continue to plan on using, HF&H Consultants, LLC for their contract negotiations and assistance with SB1383. HF&H’s proposal includes a sliding scale discount if multiple cities participate; a discount of up to $15,000 if all cities participate as indicated. Many of the cities plan on getting City Council approval to move forward with hauler contract negotiations in February/March 2021, while others are on a timeline to get approval after May 2021. Many have also expressed that they will be having their City Attorney take the lead in drafting agreements, ordinances and resolutions and expect to take their hauler agreement/contract amendment to their respective City Councils for approval in winter 2021/2022. Based on discussions with these cities, most showed interest in a multi-agency marketing and outreach plan to take advantage of economies of scale and have said they will not only require additional City staff for SB1383, but are already planning to hire that additional staff.
Based on this information, it is recommended that the City of Brea be on a similar timeline with these other cities regarding planning and implementing SB 1383. Consequently, for City Council's current consideration is the approval of Amendment No. 1 to the PSA with HF&H Consultants, LLC for Refuse Contract Negotiations and SB1383 Compliance Assistance in the additional amount of $95,000. |
| COMMISSION/COMMITTEE RECOMMENDATION |
The Finance Committee reviewed staff’s recommendation at their February 23, 2021 meeting and recommended to proceed.
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| FISCAL IMPACT/SUMMARY |
| City Council is requested to consider approval of Amendment No. 1 to the Professional Services Agreement with said firm to provide as-needed support services for refuse contract negotiations and SB1383 compliance assistance in the additional amount of $95,000. Funding in the amount of $95,000 will come from the enterprise fund for refuse-related expenditures, Fund 440 (Sanitation & Street Sweeping). This amount was not included in the FY 2020/21 Adopted Budget. Also, Fund 440 is subsidized by the General Fund for any costs in excess of revenues. Finance will include this item in the next round of quarterly budget adjustments and make any adjustments necessary to funding from the General Fund.
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Lizette Longacre, Recycling Coordinator
Concurrence: Gillian Lobo, Senior Management Analyst
Tony Olmos, P.E., Public Works Director |
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