SR-10-14-2014-3CCity Council Meeting: October 14, 2014
Agenda Item:
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Professional Service Agreement for Phase II of the Resource Recovery &
Recycling (RRR) Rate Study
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional service agreement with HF &H Consultants, LLC, a California -
based company, in an amount not to exceed $50,000 to conduct phase II of the RRR
rate study. The cumulative amount for phases I and II of the rate study would not
exceed $115,000.
Executive Summary
On March 19 2013 Council approved a professional service agreement #9719 with
HF &H Consultants for phase I of a study of RRR rates in the amount not to exceed
$67,500. Phase I proposed rate increases over the next three years which were
presented to Council in January 2014 as part of the Zero Waste Strategic Operations
Plan and adopted on May 13, 2014. The agreement with HF &H Consultants for phase I
expired on June 30, 2014 necessitating a new agreement for all future phases. Phase II
would identify various types of rate structures that could maintain funding for operations
in a zero waste environment. Based on the same competitive process in March 2013,
staff recommends a new professional service agreement with HF &H Consultants for
phase 11 of the study for an amount not to exceed $50,000. The cumulative amount for
phases I and II of the RRR rate study would not exceed $115,000.
Background
On March 19, 2013 Council approved HF &H Consultants to conduct a study of RRR
rates. The study was to be completed in three phases with phase I to be completed by
December 2013 and phases II and III to be performed after the adoption of the Zero
Waste Strategic Operations Plan (Plan).
The first phase addressed the City goals to maintain a positive fund balance, provided
for adequate fund reserves, and developed rate equity among customer classes. This
phase, which proposed rate increases over the next three years, was presented to City
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Council in January 2014 as part of the Zero Waste Strategic Operations Plan and
adopted on May 13, 2014.
Phase II would identify various types of rate structures that could maintain funding for
operations in a zero waste environment. The Plan identified several programs that
would be implemented over fifteen years. One of the recommended programs in the
Plan is to implement bi- weekly trash collection while continuing with weekly recycling
and organics waste collection for single family residents. Phase II rate structure
analysis would specifically analyze the costs of collections, processing and disposal,
including staffing and equipment needs, as it is applied to the zero waste goal of bi-
weekly trash collection for single family residents. The rate study would also build in the
potential cost /savings of the new zero waste programs over the implementation
schedule.
Discussion
Consultant Selection
In the March 19, 2013 staff report, it was indicated that staff would return to Council for
phase II and III at a later date. HF &H Consultants has provided staff a not to exceed
proposal of $50,000 based on the City- identified scope of work for phase II. HF &H
Consultants is a nationally recognized financial and management consulting firm with
substantial experience in performing rate and program analysis, as well as other
management services. Retaining HF &H Consultants to complete phase II of the study
is both cost effective and efficient as they are familiar with the project and can easily
decipher the data previously collected from both the Zero Waste Strategic Operations
Plan and phase I of the rate study project. HF &H Consultants has many years of
experience establishing rate structures for municipalities and county organizations,
which includes evaluating the costs associated with implementing new programs to
reach zero waste goals. The rate study project requires technical or special expertise
that City staff could not or do not provide, and is outside of the core service mission of
the department. Therefore, staff recommends a professional service agreement with
HF &H Consultants for phase II of the rate study project in an amount not to exceed
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$50,000. The cumulative amount for phases I and II of the rate study would not exceed
$115,000.
Financial Impacts & Budget Actions
The professional service agreement to be awarded to HF &H Consultants, LLC is for an
amount not to exceed $50,000. Funds are available in the FY 2014 -15 budget in
division 27441. The agreement will be charged to account 27441.555060.
Prepared by: Kim Braun, Resource Recovery & Recycling Manager
Approved:
I t
Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Agreement No. 9974
(CCS)