HomeMy WebLinkAboutHF&H CONSULTANTS, LLC (2)ckrri)y k;, cliy -,-
INSURANCE ON FILE A-2019-166
WORK MAY PROCEED
UNTIL INSURANCE EXPIRES FIRST AMENDMENT TO AGREEMENT FOR
D4 r OUW__z o SOLID WASTE CONSULTING SERVICES
c CLERK OF COUNCIL
o DATE
N THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 17,
`r 2019, by and between HF&H Consultants, LLC ("Consultant"), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California ("City").
RECITALS
A. The parties entered into Agreement No. A-2018-134, dated May 15, 2018, by which
Consultant agreed to provide solid waste consulting services ("Agreement').
B. The Agreement remains in effect through June 30, 2020, with provision for extension up to
one year, and the parties now wish to further extend the term, expand the scope of work, and
increase the amount to be expended under the Agreement in consideration of the expanded
time and scope.
The Parties therefore agree:
Section 1, Scope of Services, is amended to include the additional services that are described
on Exhibits A and B.
2. Section 2.a, Compensation, is amended in its entirety so that the total sums to be expended
for the scope of services originally described in the Agreement and expanded by those services
described on Exhibits A and B, including during any extension periods, are as follows:
• Original Scope and Exhibit A: $381,919. This sum is comprised of (1) the base amount
of $318,266 and (2) a 20% contingency of $63,653 for additional services at the City's
sole discretion.
• Exhibit B: $60,000. This sum is comprised of (1) the base amount of $50,000 and (2)
a 20% contingency of $10,000 for additional services at the City's sole discretion.
3. Section 3, Term, is amended to extend the term of the Agreement through June 30, 2022, with
provision for extension through June 30, 2023 upon a writing executed by the City Manager
and City Attorney.
4. Except as modified by this First Amendment, all terms and conditions of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
DAISY GOMEZ
Clerk of the Council
CITY OF SANTA ANA
City Manager
Page 1 of 2
D
APPROVED AS TO FORM
SONIA R. CARVALHO, City Attorney
By: vim. iw. fi
J M.FUNK
Assistant City Attorney
RECOMMENDED FOR APPROVAL
M in `'l cT Lj A p Y
Fuad S. Sweiss, PE, PLS
Executive Director
Public Works Agency
CONSULTANT
Name: L� l xz�
Title: Sprig. "66
Page 2 of 2
EXHIBIT A
19200 Von Karman Avenue, Suite 360
Irvine, California 92612
Telephone: 949/251-8628
ww w. hf h - con sultan ts. com
September 10, 2019
Ms. Christy I<Indig
Project Manager
Public Works Agency
City of Santa Ana
20 Civic Center Plaza; 4"' Floor Reception, Ross Annex
Santa Ana, California 92701
Re: Scope of Services to Perform Remaining Tasks: RFP NO:18-006
Dear Ms. Kindig:
Managing Tomorrow's Resources Today
Robert D. Hilton, Emeritus
John W. Farnkopf, PE
Laith B. Ezzet, CMC
Richard J. Simonson, CMC
Marva M. Sheehan, CPA
Rob C. Hilton, CIVIC
We have developed the attached scope of services to complete the City of Santa Ana's (City) request for
proposals (RFP) for integrated solid waste services based on direction received from City staff during my
meeting with you and the City Manager on July 8, 2019, and subsequent conversation with you on
August 22, 2019.
Our consulting agreement was entered into with the City on May 15, 2018. HF&H was retained to assist
in the preparation of an RFP and agreement for integrated solid waste services, review of submitted
proposals, and the negotiation of the final agreement. On June 9, 2019, HF&H forwarded a project
status and budget update to City staff documenting tasks performed that were in addition to our
originally executed scope. In summary, these Included:
We have produced six iterations of the RFP package to date, versus four revisions budgeted in
the work plan, and there will be at least one more based on the newest comments, which brings
the anticipated total to seven Iterations. Each version of the RFP documents is a significant
effort. For example, a change to the RFP service requirements may impact the agreement and
cross references in several places, and possibly result in substantive changes to the rate
proposal forms, supporting cost and operating data forms, rate adjustment formula, and related
EXCEL exhibits.
Many of the City's existing service arrangements are not described in the existing franchise
agreement, increasing the level of effort to research and document current procedures.
• We conducted a series of briefings at the start of the project with individual Council members to
confirm their goals for the process but these were not budgeted activities.
The approved budget was $1.84,000. As previously documented, we have absorbed $20,000 in fees as a
one-time client service adjustment. The requested budget adjustment is $134,266. Please see the
attached workplan for details. Therefore, the updated total budget is $318,266 ($184,000+ $134,266).
Managing Tomorrow's Resources Today
Ms, Christy Kindig
September 10, 2019
Page 2 of 2
We appreciate the opportunity to submit the attached scope of work and fee estimate to complete our
work for the City. If you have any questions, please contact me at (949)251-8902, Iezzet@hfh-
consultants.com.
Very truly yours,
HF&H CONSULTANTS, LLC
Laith Ezzet, CIVIC
Senior Vice President
City of Santa Ana _ _ Scope of Work
Solid Waste Consulting Services
Task 1: Prepare and Issue Request for Proposals
Subtask 1A: Revise RFP and Agreement up to Two Times Based on Direction of City Staff
Based on the information and direction received by City staff on July 8, 2019 as documented in our
correspondence dated July 16, 2019, we will revise the draft RFP, and draft the agreement.
HF&H will submit the draft RFP and agreement to City staff for review. After City staff has reviewed the
documents and provided us with one set of written comments, we will confer with City staff and make
appropriate revisions to these documents one additional time.
Subtask 1B: Attend First City Council Meeting to Consider RFP Package
HF&H will attend one City Council meeting at which the City Council will consider the RFP and draft
agreement. We will assist City staff with the preparation and presentation of the RFP process and key
contracting terms to be requested.
Subtask 1C: Update Documents Based on Council Direction
HF&H will update the RFP and draft agreement to reflect changes that may be requested by City Council
during the Council meeting to consider the documents, As the City Council previously provided direction
at the meeting on October 16, 2018, the budget assumes that such changes will consist of minor
refinements that do not require significant changes to structure of the documents.
Subtask 1D: Attend Second City Council Meeting to Approve RFP Package
If the RFP package is not approved for release at the first City Council meeting in Task 16, HF&H will
attend a second City Council meeting at which the City Council will approve the RFP and draft
agreement.
Subtask 1E: Finalize Documents Based on Council Direction
HF&H will finalize the RFP and draft agreement to reflect changes that may be requested by City Council
during the second Council meeting to approve the documents. The budget assumes that such changes
will consist of minor refinements that do not require significant changes to structure of the documents.
Subtask IF: Solicit Proposals
Once the RFP and draft agreement have been approved by the City Council, they can be distributed to
potential proposers. We can provide the City with a recommended list of potential proposers to whom
the City may send the RFP. Alternatively, to avoid the time, expense and environmental impact of
production and mailing of multiple copies of a large document, we recommend that HF&H or the City e-
mail the RFP document to all potential proposers and the local waste haulers' association, and other
interested parties. We can provide the City with a list of recipients for City records. By e-mailing the
document, proposers are immediately notified of its availability, can Immediately review the document
to determine their level of interest without having to print it out, and can forward it to the appropriate
parties within the firm immediately without having to print extra copies. As we regularly distribute our
RFPs this way, we may have all or most of these key individuals already on our e-mail distribution list.
September 10, 2019 Page 1 HF&H Consultants, LLC
City of Santa Ana N _ Scope of Work
Solid Waste Consulting Services
Subtask 1G: Prepare for and Conduct Proposers' Conference
We will schedule, along with City staff, a proposers' conference to be conducted shortly after release of
the RFP. Potential proposers will have an opportunity to receive clarification of any issues and ask
questions at this conference. We will also accept written requests for clarification until a set deadline.
We recommend that contact between proposers and the City be controlled and will suggest methods to
do so, based on City staff and City Council's desired level of interaction with proposers.
Subtask 111: Prepare Addenda
We will prepare written responses to questions posed at the proposers' conference, or submitted in
writing, and prepare any necessary addenda arising from issues posed at the proposers' conference. All
questions and responses shall be made available to all proposers in attendance at the conference.
TASK 2: Review and Evaluate Proposals
Subtask 2A: Review Proposals for Completeness
We will perform an Initial review of each proposal submitted for compliance with the City's RFP
requirements and consult with City staff regarding the handling of incomplete proposals.
Subtask 28: Evaluate Complete Proposals
The specific criteria for which we evaluate the complete proposals will be developed using input
received from City staff and the City Council. Based on our experience In other cities, we anticipate
evaluating the proposals based on the following criteria:
• Exceptions taken to the terms and conditions of the draft agreements;
• Proposed total compensation (rate revenue), based on the rates included in the financial section of
the proposal;
• Experience of the proposers in providing the requested services In other jurisdictions, based on
information contained in their proposals;
• Financial resources of the proposers, based on information contained in their proposals; and,
• Unique proposal featuresthat exceed the RFP's minimum requirements.
Subtask 2C: Evaluate Proposed Rates and Operating Assumptions, Perform Fiscal and Rate Analysis
We will evaluate the proposed rates and rate revenue, supporting costs, number of route hours,
diversion plans and other submitted operating assumptions for reasonableness. We will review each
proposers' fiscal stability based on key financial ratios, ability to provide required insurance and
performance sureties, and the financial impact of the growth necessary to assume servicing these
contracts.
We will present the overall impact of the proposed rate revenue on the City and its rate payers, as well
as noting the impact to rate payers at common service levels. It is important not to focus on just a few
low rate categories, without determining whether other customers will be similarly Impacted.
September 10, 2019 Page 2 HF&H Consultants, LLC
City of Santa Ana_ Scope of Work
Solid Waste Consulting Services
Subtask 21): Prepare Follow -Up Questions for Proposers
After performing our initial review and evaluation, we will provide each proposer with our summary
evaluation of the company's individual proposal In order to confirm our understanding of the
Information presented in the proposal.
Subtask 2E: Review Responses and Clarify Unresolved Issues
We will review responses received from proposers and resolve any open issues to help ensure that
proposers are satisfied with the representation of their proposals.
Subtask 2F: Interview Proposers
At this stage in the process, usually one, two, or three proposals are more likely to be selected. Along
with the City's evaluation team, we will interview up to three proposers, scheduling all interviews on
one day.
Subtask 2G: Contact References for Recommended Proposer
We will contact references provided for the proposer to be recommended to the City Council for award
of the agreement. We will summarize the results of the reference checks within the evaluation report.
Subtask 2H: Prepare Draft Evaluation Report
All proposals will receive a preliminary evaluation. A detailed evaluation is performed of the one or two
proposals that appear to offer the most value for the services and costs proposed. Additionally, we will
review the overall reasonableness of the operational and financial assumptions contained in the
technical section of the proposals selected for detailed evaluation. After our evaluation is complete, we
will provide the City with a report describing the evaluation results.
Subtask 21: Review City Comments and Prepare Final Evaluation Report
HF&H will review and incorporate City comments into the evaluation report and provide a final
evaluation report.
Subtask 2J: Attend First City Council Meeting to Consider Contractor for Negotiations
HF&H will attend one City Council meeting at which the City Council will consider the proposer(s) with
whom the City would like to negotiate a franchise agreement.
Subtask 21(: If Required, Gather and Provide Additional Information to Respond to City Council
Inquiries
Based on questions and/or comments from the City Council at the meeting in Task 2.1, HF&H will gather
additional information to respond and provide the information to City staff to distribute to the Council.
September 10, 2019 Page 3 HF&H Consultants, LLC
City of Santa Ana Scope of Work
Solid Waste Consulting Services
Subtask 2L: Attend Second City Council Meeting to Select Contractor for Negotiations
If the Council does not select a contractor for negotiations at the first meeting in Task 2J, HF&H will
attend a second City Council meeting at which the City Council will select the proposer(s) with whom the
City would like to negotiate a franchise agreement.
TASK 3: Negotiate With Top Ranked Contractors. and Prepare a New Agreement with Selected
Contractor for City Council Approval
Subtask 3A: Prepare for and Participate in Negotiation Sessions
HF&H will participate in negotiation sessions with one or more proposers, up to a total of four
negotiation meetings. The fee estimate includes costs for up to four negotiation sessions. The City may
prefer to negotiate with multiple proposers at this time, as multiple proposals may appear attractive
prior to finalizing the agreement, Proposers are most cooperative when they are still in competition.
After finalizing negotiations, we would then assist the City's evaluation team in its determination of a
final selection. If the City desires to negotiate further with the final selection, we would assist in those
negotiations as well.
Subtask 3B: Prepare Revised Portions of Agreement
Based on the negotiations, we will make up to three sets of revisions to the final agreement negotiated
with the selected proposer. The City can then make a decision based on clearly defined contract terms,
verses general promises often made in proposals and during negotiations. Also, at award, neither the
successful nor unsuccessful proposers can debate what was or was not the final offer to the City.
Subtask 3C: Attend First City Council Meeting for Consideration of the Final Agreement
We will attend the City Council meeting at which the agreement will be considered by the City Council.
Subtask 31): Prepare Additional Analysis if Requested by the City Council
HF&H will prepare additional analysis if requested by the City Council during the meeting in Task 3C.
HF&H will submit the analysis to City staff for distribution to City Council prior to City Council meeting in
Task 3E. If the additional analysis is more than anticipated and budgeted for, we will discuss this with
City staff, and inform staff when the budget for this task is expended.
Subtask 3E: Attend Second City Council Meeting for Approval of the Final Agreement
We will attend the City Council meeting at which the final agreement will be approved by the City
Council. The City Attorney or City Clerk will be responsible for obtaining signatures and completing
attachments with the contractor such as bonds and Insurance certificates.
September 10, 2019 Page 4 HF&H Consultants, LLC
City of Santa Ana _ _ Scope of Work
Solid Waste Consulting Services
Fee Estimate
We will perform the scope of work based on time and materials as described in the workplan on the
following page. The proposed budget adjustment is $134,266.
The remaining tasks include updating the integrated residential and commercial RFP and agreement
based on direction provided by City staff on July 8, 2019, revising the documents one additional time
based on City staff review, soliciting proposals, conducting a pre -proposal conference, evaluating up to
six proposals, participating in up to four negotiation sessions, and finalizing an agreement with one
proposer. We have budgeted to attend a total of up to six City Council meetings during the process. If
we are requested to change previous direction and split the integrated residential and commercial
RFP/agreement into separate pieces to be proposed upon (such as collection zones, or separate
residential vs, commercial contracts), our fee estimate will significantly increase.
The workplan on the next page itemizes hours by task and staff classification. Hours may be shifted
among tasks and staff.
September 10, 2019 Page 5 HF&H Consultants, LLC
City of Santa Ana Scope of Work
Solid Waste Consulting Services
Solid Waste Agreement Competitive Procurement Workplan
Task Dascription
Sr. Vice
Pres!
Sr. Projectdent/ Manager
Staff
Total Hours
1. Prepare and Issue Request for Proposals
President
A. Revise documents up to two Owes based on direction from City staff
24
80
40
144
B. Attend first Council meeting to consider RFP package (CC Mtg #1)
5
6
10
C. Update documents based on Council direction
8
8
6
24
D. Attend second Council mooing to approve RFP package (CC Mfg #2)
5
6
10
E, Finalize documents based on Council direction
4
8
4
16
F. Solicit proposals
1
2
3
G. Prepare for and attend proposers' conference
2
4
6
H. Prepare addenda
4
8
2
14
53
120
64
227
Subtotal Task 1 Hours
2, Review and Evaluate Proposals
A. Review proposals for coupleleness
6
6
B. Evaluate complole proposals (maximum of six)
18
24
60
102
C. Evaluate proposed roles and operating assumptions
8
2
24
34
D. Prepare followup questions for proposers
6
8
8
22
E. Revew responses and clarify unresoHed Issues
4
8
8
20
F. InleNew proposers
8
8
16
G Contact references for recommended proposer
1
2
8
11
H. Prepare draft evaluation report
16
24
16
56
1. Review City comments and prepare final evalualon report
4
6
2
12
J. Attend First City Council meeting to consider contractor for negotiations (CC Mtg #3)
5
5
10
K. If required, gather and provide addlOonal Informaton to respond to Council inquiries
8
8
4
20
L. Attend Second City Council meeting to $sleet contractor for negotiators (CC Mtg 94)
5
5
10
83
106
130
319
Subtotal: Task 2 Hours
3. Negotiate Final Agreement and Prepare a New Agreement
A. Prepare for and participate In up Is four negotiating sessions
24
32
66
B. Prepare revised potions of Agreement (up to 3 redsions)
12
24
36
C. Attend First Council meeting for consideration of final agreement (CC MIg#5)
5
5
10
D, Prepare additional analysis If requestod by City Council
8
6
4
20
E. Attend Second Council meeting for approval of final agreement (CC Mst 116)
6
5
10
54
74
4
132
Subtotal: Task 3 Hours
Total Hours for Remaining Tasks
180
300
188
678
Hourly Rate .......
..............................................a ..................................................................................................................................................................................................................
$ 288
$ 253
$ 181
it d'n'g- r'k-
Subtotal: Fees for Ramelning Work to be Partormed
$ 64,720
$ 75,900
$ 34,628
$ 169,648
Budgeted Expenses
$ 420
................ ........... ...
$ 165.068
.............._............................. ........... .................. ... .......... .................... .._..........................................................
Remaining Work Foos and Expanses
... ............................................................ ........_....................._....._.........._.......................................................
............. ...... .............................
... ....
... ...................,....
Remaining Budget Par City as of 713V20l9ta1
I..,
............................
..... .................... .............._..._........................................1....._...............
$ 30,80
$ 134,266
Budget Adjustmentla
..
..
...........................................................
(1) Excludes $t,6W far translation subcontractor applied to contingency.
(2) Budget adjustment is net of $20,000 client service adjustment City's contingency is separate from this amount.
September 10, 2019 Page 6 HF&H Consultants, LLC
CI of Santa Ana Scope of Work
Solid Waste Consulting Services
Hourly rates through December 31, 2019 for professional and administrative personnel are listed below. Rates will
adjust each January 1 by the annual percentage change in the CPI-U, (Los Angeles -Long Beach -Anaheim).
Position
Senior Vice President/President
Senior Project Manager
Project Manager
Senior Associate
Associate Analyst
Assistant Analyst
Administrative Staff
Expenses will be billed as follows
Automobile Travel
Document Reproduction (over 20 pages/run)
Facsimile, Telephone
Postage, Overnight Mail and Couriers
Schedule
Rate
$288
$253
$219 to $235
$181 to $201
$129 to $165
$119
$98
Prevailing IRS mileage rate
15 cents per page (black & white)
75 cents per page (color)
No charge
Actual
DATE
ACTIVITY
September 17, 2019
City Approves Consulting Amendment
September to December 2019
Update Draft RFP and Agreement
January 2020
Present RFP Package to Council for Approval
February 2020
Finalize and Release RFP
June 2020
Proposals Due (4-1nonth proposal preparation period)
July - December 2020
Evaluate Proposals and Interview Proposers
January 2021
Council Selects Contractor(s) for Negotiation
February to May 2021
Negotiate and Prepare Final Agreement
June 2021
Award by City Council
Summer 2021
Proposition 218 Noticing (45 days in advance of hearing)
Summer 2021
Proposition 218 Hearing
July 1, 2022
Commence New Services
September 10, 2019 Page 7 HF&H Consultants, LLC
EXHIBIT B
19200 Von Karman Avenue, Suite 360
Irvine, California 92612
Telephone: 949J251-862 8
www,hfh-consultants.com
August 23, 2019
Ms. Christy Kindig
Project Manager
Public Works Agency
City of Santa Ana
20 Civic Center Plaza; 4th Floor Reception, Ross Annex
Santa Ana, California 92701
Managing Tomorrow's Resources Today
Robert D, Hilton, Emeritus
John W. Farnkopf, PE
Lalth a, Ezzet, CMC
Richard J. Simonson, CMC
Marva M. Sheehan, CPA
Rob C. Hilton, CMC
Re: Scope of Work and fee Estimate to Negotiate an Extension of the Solid Waste Agreement with
Waste Management
Dear Ms. Kindig:
As the City requested at my meeting with you and the City Manager on July 8, 2019, we have developed
the attached scope of work and fee estimate to assist the City of Santa Ana (City) in negotiating a one-
year extension of the solid waste agreement with Waste Management (WM) to June 30, 2022.
If you have any questions, please contact me at (949) 251-8902, lezzet@hfh-consuitants.com.
Very truly yours,
HF&H CONSULTANTS, LLC
/'�J" W--
Lalth Ezzet, CMC
Senior Vice President
City of Santa Ana Scope of Work
Solid Waste Consulting Services
CI a WAVA
r'
Background
The City of Santa Ana (City) contracts with Waste Management (WM) for exclusive residential and
commercial collection services, including permanent and temporary roll -off and bin service (excluding
temporary construction and demolition debris service), and construction and demolition debris which is
generated from City government operations. The City recently exercised its option to extend the term of
WM's agreement to June 30, 2021. The City desires to further extend the agreement for one additional
year to June 30, 2022, in orderto accommodate the City's desired timeframe forthe competitive RFP
process, and to do so will require a mutual agreement between the City and WM as we understand the
City does not have a unilateral option to extend it further in its sole discretion. As described below,
certain regulatory requirements will need to be addressed in the extended agreement, and it is
anticipated that rate adjustments for regulatory changes related to organics services will need to be
negotiated with WM.
Regulatory Requirements and Background
The following regulations should be addressed in the City's extended solid waste agreement.
AB 1594: Assembly Bill 1594, was signed by Governor Brown in 2014, and includes
the following provisions:
o As of January 1, 2020, the use of green material as Alternative Daily Cover (ADC) does not
constitute diversion through recycling and will be considered disposal for purposes of
measuring a Jurisdiction's 50 percent per capita disposal rate.
Yard Waste Diversion Requirements in Current Agreement
Section 14(a)(3) of the City's agreement with WM states:
"Yard Waste Collection and Recycling Plastic Carts: The contents of the plastic carts containing
Yard Waste will be transported to a Composting Facility which meets all state, federal and local
laws for Yard Waste Diversion and which is acceptable to the City. Contractor shall be responsible
to ensure that the Yard Waste collected by Contractor is diverted in compliance with CIWMA and
the City's SRRE."
City's 2017 Electronic Annual Report (EAR) to CalRecycle —"Green Material ADC"
Although, the agreement requires WM to transport yard waste to a composting facility, the City's EAR,
and CalRecycle's Disposal Reporting System, identify that yard waste collected by WM is being diverted
as ADC.
The City/WM reported via the 2017 Electronic Annual Report to CalRecycle:
"The City's hauler, Waste Management, is currently exploring options which include in -county and
out -county solutions, including utilizing OC Recycle's composting pilot programs, now in the
August 23, 2019 Page 1 HF&H Consultants, LLC
City Santa Ana Scope of Worl<
Solid Waste Consulting Services
second phase at all County landfills. In addition, Waste Management is securing third -party
private solutions, such as composting facilities out of county."
As reported by CalRecycle, 32,603 tons of yard waste were used as Alternative Daily Cover in 2017, and
29,332 in 2018, If those tons were counted as disposal, this could reduce the City's state -calculated
diversion rate by approximately 4 percentage points for 2017 (data to accurately calculate the 2018
Impact is not yet available).
SB 1383: In September 2016, Governor Brown signed Senate Bill 1383 establishing
methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate
pollutants in various sectors of California's economy. As it pertains to jurisdictions, SB 1383 establishes
targets to achieve a 50 percent reduction in the level of the statewide disposal of organic waste from the
2014level by 2020, a 75 percent reduction by 2025, and establishes an additional target that not less than
20 percent of currently disposed edible food is recovered for human consumption by 2025. The definition
of organic waste in SB 1383 is expanded to include:
o Food waste
o Yard waste
o Landscape and pruning waste
o Applicable textiles and carpets
o Wood and lumber
o Fiber
o Manure
o Biosolids
o Digestate and sludges
August 23, 2019 Page 2 HF&H Consultants, LLC
C Lty of Santa Ana _ Scope of Work
vSolid Waste Consulting Services
SB 1383 Timeline
SB 1383 TIMELINE
t
Jurisdiction shall Implament an organics recycling
program for Alai generators (including resident let)
State to achieve 75% reduction In organics disposal
and recover 20°6 of disposed edible food for human
consumption
Jurisdiction shalt take progressive enforcement actions against
non -compliant organics generators, haulers. and processors
On December 18, 2018, the City Council approved an amendment to the Fourth Amended and
Restated Agreement with WM, which among other items, Included a commercial organics rate
structure where WM charges customers with organics service 50% of the refuse rate for
comparable service, The City reimburses WM for the costs of the organic service not covered by
the customer rates, Additionally, the City is required to offer an organics program to residential
customers starting January 1, 2022, and this will require the City to negotiate an adjustment to
the residential rate with WM for residential organics collection (including food waste), The new
program will have been in place for six months for six months from January 1, 2022, through the
desired term of the extended agreement, June 30, 2022.
Study Objective
The project objective is to assist the City in negotiating a one-year extension to the solid waste agreement
with WM which will incorporate programs to comply with AB 1594 and SB 1383 as described above.
August 23, 2019� Page 3 HF&H Consultants, LLC
City of Santa Ana Scope of Work
Solid Waste Consulting Services
Scope of Work
Task 1 Review Waste Management's Proposed Rate Adiustment for Yard Waste Collection and
Processing to Comply with the Requirements of AB 1594
Historically, CalRecycle permitted jurisdictions to use yard waste and landscaping waste as alternative
daily cover (ADC) on landfills for vector and erosion control, and odor mitigation, and jurisdictions
received diversion credit for this use. Beginning January 1, 2020, yard waste used as ADC will instead be
considered disposal In terms of measuring a jurisdiction's annual 50 percent per capita disposal rate. To
receive diversion credit for this waste stream jurisdictions must divert this material in methods as
defined by CalRecycle as highest and best use of the material, such as composting and other beneficial
uses.
Waste Management currently diverts yard waste collected in the City as ADC at the Orange County
Landfills (OC Landfills). The OC Landfills do not charge haulers for yard waste used as ADC. WM is
required to perform processing of the yard waste (removal of contaminants, chipping and grinding) prior
to delivery to the OC Landfills, however, WM may incur additional costs to divert yard waste from
landfilling as required by AB 1594. These costs may include, but are not limited to, additional pre-
processing of the yard waste including enhanced screening for contaminants, transportation costs if
yard waste must be taken to facilities other than OC Landfills, and composting or other processing
related costs.
To determine the reasonableness of the AB 1594 rate adjustment that may be requested by WM, HF&H
will:
1. Review material provided to the City by WM regarding its proposed yard waste diversion plans,
including supporting cost information made available by WM.
2. Meet with City staff and/or WM representatives to discuss proposed plans.
3. Request additional financial and/or operating data to confirm the reasonableness of the proposed
rate increase.
4. Negotiate the rate increase for the diversion of yard waste.
Task 2 Review Waste Management's Proposed Rate Adjustment to Implement a Residential Food
Waste Diversion Program
SB 1383 requires that City's provide food waste diversion programs for residential customers starting
January 1, 2022. Therefore, WM's proposal to provide this service will be based incurring the costs of
providing a compliant program for six months until the proposed extension period terminates on June
30, 2022.
It is our understanding that WM has proposed to co -collect food waste with yard waste from residential
customers.
August 23, 2019 Page 4 HF&H Consultants, LLC
Clit of Santa Ana � _ Scope of Work
Solid Waste Consulting Services
To determine the reasonableness of the SR 1383 residential rate adjustment requested by WM, HF&H
will:
1. Review material provided to the City by WM regarding Its proposed residential food waste
collection program, including supporting cost Information made available by the waste hauler.
2. Review relevant publicly available rate documentation from the limited number of Orange County
cities that have Implemented a residential food waste collection program,
3. Meet with City staff and/or WM representatives to discuss proposed plans,
4. Request additional financial and/or operating data to confirm the reasonableness of the proposed
rate adjustment.
5, Negotiate rates and terms for residential food waste collection.
Task 3 Prepare Contract Amendment
HF&H will prepare a draft contract amendment based on the negotiated rate and terms, HF&H will revise
the draft once based on review by City staff, and the City Attorney will be responsible for finalizing it
according to City form.
rya
We will perform the scope of work based on time and materials, not to exceed $50,000 without prior
written City authorization. HF&H will bill the City based on the number of hours worked multiplied by
our hourly billing rates, plus expenses incurred. Payment is due within 30 days of invoicing.
Hourly dates
Hourly rates through December 31, 2019 for professional and administrative personnel are listed below.
Rates will adjust each January 1 by the change In the Consumer Price Index
Position
Senior Vice President/President
Senior Project Manager
Senior Associate
Associate Analyst
Assistant Analyst
Administrative Staff
Expenses will be billed as follows
Automobile Travel
Facsimile, Telephone
Postage, Overnight Mail and Couriers
Rate
$288
$253
$181to $201
$129to $165
$119
$98
Prevailing IRS mileage rate
No charge
Actual
August 23, 2019 Page 5 HF&H Consultants, LLC
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