Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with HF&H Consultants, LLC to Develop a Procurement Process for Solid Waste Recyclables, and Organics Services Contracting (Phase 1) for a Total Not-to-Exceed Amount of $137,050
Staffreport
COUNCIL PRIORITY
• Sustainability & Resiliency
• Fiscal Sustainability and Transparency
SUMMARY
The Franchise Agreement for Solid Waste, Recyclables, and Green Waste Services between the City of San Leandro and Alameda County Industries is set to expire on January 31, 2025. The Consulting Services Agreement will provide technical assistance to develop a procurement process for future services. This is the initial phase of the franchise process and includes the following tasks to be completed by HF&H Consultants, LLC (in conjunction with City staff): negotiation of a short-term extension of the current franchise agreement; development of an integrity policy to guide stakeholders through the process; and development of a procurement package to solicit services from prospective contractor(s).
RECOMMENDATIONS
Staff recommends that the City Council approve and authorize the City Manager to execute a Consulting Services Agreement with HF&H Consultants to assist the City in the development of a procurement process for solid waste, recyclables, and organics services contracting (Phase 1).
BACKGROUND
The City established the Franchise Agreement for Solid Waste, Recyclables, and Green Waste Services (“Franchise”) with Alameda County Industries (“ACI”) on February 1, 2000. The Franchise had an initial term of ten years with an automatic extension of ten additional years. On July 20, 2009, the City Council approved Resolution No. 2009-117 to execute Amendment No. 10 to the Franchise. The amendment included a provision to extend the term of the agreement to January 31, 2025 in conjunction with the transition to a natural gas-powered collection services fleet.
On May 1, 2022, the City entered into a Consulting Services Agreement with HF&H Consultants to assist the City with implementation of SB 1383, a statewide unfunded mandate to reduce emissions of short-lived climate pollutants. The agreement was amended per Resolution No. 2022-118 for services through Fiscal Year 2022-2023 and included tasks for initial discussions regarding the franchise expiration and a procurement process. The City requested a proposal from HF&H for a new and separate Consultant Services Agreement specific to solid waste, recyclables, and organics services procurement (as provided in Attachment B).
Analysis
This initial phase of the procurement process includes negotiation of a short-term extension with the current franchisee, development of an integrity policy, and development of a procurement package to solicit services from prospective contractor(s). HF&H has provided a proposal that includes 497 hours plus an additional 60 hours of contingency to assist City staff in completing these tasks.
A short-term extension to the current franchise will provide the City with the opportunity to develop and implement a detailed procurement process with adequate time for stakeholder input. Without an extension, staff would not have sufficient time to evaluate all possible procurement pathways and potential future service enhancements. As a result, staff would likely recommend issuance of a streamlined RFP package for immediate release and a compressed contractor and service selection process to ensure a smooth transition of services beyond the current franchise term. HF&H will provide technical assistance to draft an extension and support staff in discussions with ACI.
The integrity policy is intended to establish procedures for interactions among stakeholders during the procurement process to ensure that the process is fair and transparent. HF&H will provide support to develop a policy for Council review and approval.
The procurement process will define the terms under which the City negotiates services with one or more contractors. Services may include solid waste, recyclables, and organics collection, processing, and landfill disposal. HF&H will assist the City in developing a process that is fair and transparent; and reflects the City’s current service needs, sustainability goals, and state compliance requirements. Tasks include: 1) defining and describing options for the procurement process; 2) defining the elements of the procurement package; and 3) development of the procurement package documents for Council review and approval.
Previous Actions
Resolution No. 2022-118 for Amendment No. 1 to Consulting Services Agreement with HF&H for SB1383 Support for Fiscal Year 2022-2023.
Financial Impacts
Sufficient funds are included in the Fiscal Year 2022-2023 General Fund budget for the Consulting Services Agreement in the amount of $137,050 in account 010-17-001-5120.
ATTACHMENT(S)
Attachment A: Resolution for CSA with HF&H
Attachment B: Proposal from HF&H
PREPARED BY: Jennifer Auletta, Deputy Public Works Director, Public Works Department