Title
Adopt a Resolution to Approve and Authorize the City Manager to execute Amendment No. 1 to a Consulting Services Agreement with HF&H Consultants, LLC for SB1383 Support through June 30, 2023, for a total not to exceed amount of $184,485 and approve an appropriation of $109,560 into account 594-41-205 and $17,055 into account 594-41-207 for fiscal year 2022-2023
Staffreport
COUNCIL PRIORITY
• Sustainability & Resiliency
• Community Engagement and Outreach
SUMMARY
Amendment No. 1 to the Consulting Services Agreement with HF&H Consultants will provide for SB 1383 implementation support for fiscal year 2022-2023. In addition, HF&H Consultants will assist with related solid waste, recycling, and organic waste service contracting and other regulatory requirements set by CalRecycle. $109,560 in grant funding from CalRecycle will be used for the SB 1383 tasks identified in the proposal dated June 30, 2023, as provided by HF&H Consultants. The proposal for fiscal year 2022-2023 will cost $135,485 for a total contract amount of $184,485.
RECOMMENDATIONS
Staff recommends that the City Council approve and authorize Amendment No. 1 to the Consulting Services Agreement with HF&H Consultants, LLC for SB 1383 support. In addition, staff recommends that City Council approve an appropriation of $109,560 into account 594-41-205 and $17,055 into account 594-41-207 for fiscal year 2022-2023.
BACKGROUND
Enacted in 2016, SB 1383 is a statewide effort to reduce emissions of short-lived climate pollutants (SLCP). The law sets targets to reduce organic waste disposal 50 percent by 2020 and 75 percent by 2025 and rescue 20 percent of currently disposed surplus food by 2025. The City is responsible for complying with the extensive program requirements that include providing organics collection services to all businesses and residents, conducting education and outreach to the community, procuring recyclable and recovered organic products, and reporting efforts to CalRecycle in accordance with established timelines.
The City received a CalRecycle Grant of $115,507 for SB 1383 Local Assistance Grant Program Funding to be used by June 30, 2023. Staff intends to use the grant funding for SB 1383 implementation assistance from a consulting firm. On May 1, 2022, the City entered into a Consulting Services Agreement with HF&H Consultants to bring businesses and multifamily residences into compliance with recycling and organics regulations, review public education and outreach efforts, assist staff in the implementation of Recyclist software for SB 1383, and to assist staff in developing a compliant organics product procurement program. In addition, staff tasked HF&H Consultants with developing an implementation plan for the upcoming fiscal year, which is provided in their proposal dated, June 30, 2022. The proposal is the scope of work and compensation schedule for Amendment No. 1 to the agreement.
Analysis
HF&H Consultants will assist City staff to further develop and implement the City’s SB 1383 regulatory compliance plan for fiscal year 2022-2023. The work is specified tasks 1-3 on the proposal dated June 30, 2022.
SB 1383 work tasks include:
• Task 1: Implement SB 1383-compliant organics collection for commercial customers
• Task 2: Develop SB 1383 recordkeeping and reporting system
• Task 3: Review existing contracts and recordkeeping practices related to organic waste product procurement
HF&H will also perform additional work for the City not directly related to SB 1383 program implementation. Task 4 in the proposal is to assist the City in developing a procurement strategy for the solid waste, recycling, and organics service collection franchise, which is set to expire February 1, 2025. Task 5 in the proposal is to assist the City to make modifications to the annual report to CalRecycle to adjust for waste that was incorrectly attributed to the City affecting the reported diversion rate. Tasks 4 and 5 cannot be paid for with the SB 1383 grant funding, so other funding sources are identified.
Previous Actions
• Resolution No. 2022-037 approving and authorizing the City Manager to execute the CalRecycle Grant Application for $115,507 through fiscal year 2022-2023.
Fiscal Impacts
This project will require Council appropriation of $126,615 for Fiscal Year 2022-2023 from the Environmental Services Fund Designated Fund Balance into account 594-41-205-5120 ($109,560) and account 594-41-207-5120 ($17,055). There is $109,560 in State grant funding revenues for this project. The remaining $8,870 is included in the Fiscal Year 2022-2023 General Fund Budget.
The project will be funded as follows:
• General Fund-Administration, Account 010-17-001: $8,870
• Environmental Services, Account 594-41-205: $109,560
• Environmental Services, Account 594-41-207: $17,055
Total $135,485
This Council action will not impact the General Fund-Administration fund balance because there are funds available in the FY2022-2023 adopted budget.
This Council action was not budgeted in the Environmental Services Fund and will require an appropriation of $126,615 for this project that will draw down the Environmental Services Fund’s designated fund balance.
ATTACHMENTS
Attachment A: Draft Resolution 2022.xxx
Attachment B: HF&H Proposal, dated June 30, 2022, including Scope of Work and Compensation Schedule
Attachment C: CSA between the City of San Leandro and HF&H Consultants, LLC for SB 1383 Support, date May 1, 2022
PREPARED BY: Jennifer Auletta, Deputy Public Works Director, Public Works Department