CC 05-07-2024 Item No. 8. HFH Master Agreement_Desk Item
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: May 7, 2024
Agenda Item #8
Subject
Approve a first amendment with HF&H Consultants, LLC, to provide solid waste
consultant services for a not-to-exceed amount of $430,000 and extend the contract
date to August 31, 2026.
Recommended Action
1. Authorize the City Manager to execute a first amendment with HF&H
Consultants, LLC, increasing the contract amount by $80,000 for a new total not-
to-exceed contract amount of $430,000, and extending the term from August 31,
2025, to August 31, 2026.
2. Approve a Budget Adjustment in the amount of $80,000 in the Resource
Recovery Fund for HF&H Consultants, LLC (520-81-801 750-174).
3. Adopt Resolution No. 24-xxxx approving budget modification #2324-339,
approving a Budget Adjustment in the amount of $80,000 in the Resource
Recovery Fund for HF&H Consultants, LLC (520-81-801 750-174).
Background:
Q5: The staff report states "Since the execution of the agreement, HF&H has
completed the review of Recology’s proposed cost-based rate adjustment for the
fourth year of the franchise agreement and a review and audit of the hauler." It's been
two years since HF&H's first contract. What has been done? Any work product to
share? (Chao)
Staff response: The rate schedule for Rate Year 4 for Recology was presented to and
adopted by City Council on December 5, 2023. The materials presented for this item
can be found in the agenda packet from that meeting. HF&H has also completed the
review and audit of the hauler. This audit has verified that the hauler is in substantial
compliance with the terms of the agreement.
Q6: The staff report states "The City needs the support of HF&H to continue to
negotiate and secure new post-collection services within the City as the task is multi-
phased and multi-faceted and is expected to result in more than one negotiated
agreement. Due to complexities in procurement, securing these services requires
additional time and budget."
The request is to increase the contract amount by $80,000. It's only been two years
since HF&H's first contract. Why has the complexity to "negotiate and secure new
post-collection services" changed in the past two years that was not expected back in
May 2022? (Chao)
Staff response: Procurement processes have been revised since the original contract
was initiated. Additionally, due to the varied services being considered with the
project, the procurement approach has been revised to limit the City’s exposure to risk
and liability. These efforts have required an extensive amount of work that was
unanticipated.
Q7: How much has been spent on the total amount of $350,000 (original contract
amount from May 2022)? What they have been spent on? (Chao)
Staff response: As stated in the staff report, HF&H has completed the cost-based rate
adjustment for the fourth year of the franchise agreement, as well as a review and
audit of the hauler. Additionally, the consultant has spent time preparing and
modifying the post-collection request for proposal (RFP) information. While the RFP
document is not yet complete, the majority of this effort has been prepared, with public
release of the RFP expected in June or July 2024. Upon successful completion of the
RFP process, additional time is necessary to negotiate the various agreements, prepare
information, and assess the necessary adjustments in costs.
Approximately $44,000 is remaining of the $350,000 in the original agreement. A
breakdown of the expenditures can be found in Attachment B to the staff report. Each
of the service orders listed is associated with the three efforts listed above.
Attachments Provided with Original Staff Report:
A - First Amendment to HF&H Master Agreement
B – HF&H MSA for Solid Waste Consulting Services
C – Draft Resolution