HomeMy WebLinkAbout21 - Residential Solid Waste Transition and ContractPQ�T
CITY OF
1) X
NEWPORT BEACH
City Council Staff Report
Agenda Item No. 21
November 26, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager
949 - 644 -3001, dkiff @newportbeachca.gov
Mark Harmon, Municipal Operations Department Director
949 644 -3055, mharmon(a)newportbeachca.gov
PREPARED BY: Mark Harmon, Municipal Operations Department Director
APPROVED: --� a
TITLE: Contract Amendment No. Three Between City and HF &H
Consultants, LLC (HF &H) for Residential Solid Waste
Transition and Contract Management Services
RECOMMENDATION:
Authorize Mayor Curry to sign the Contract Amendment (Attachment A) between City
and HF &H for Residential Solid Waste Transition and Contract Management Services.
FINANCIAL:
The not to exceed (NTE) compensation of the scope of services outlined in Exhibit A of
Attachment A is $79,000.00 The current adopted budget includes sufficient funding in
the Refuse Division Account 3150 -8250 for this work..
DISCUSSION:
At the April 23, 2013 meeting, City Council approved a Request for Proposal document
for residential solid waste services and transfer station operations. In June 2013, the
City entered into a contract with HF &H to work with staff to evaluate the seven (7)
proposals received for these services. The evaluation was completed in August of
2013. Two amendments to the Contract were entered into, and entailed the following
scope of services:
1) Amendment No. One - Evaluation /Assistance with the proposal by the City
employees' representative, Newport Beach Employees League (N.B.E.L.).
2) Amendment No. Two - Evaluation and negotiation with three firms selected by
City Council for further review: CR &R Incorporated, Rainbow Environmental and
Ware Disposal Co.
Contract Amendment #3 between City and HF &H Consultants, LLC (HF &H) for
Residential Solid Waste Transition and Contract Management Services
November 26, 2013
Page 2
At the November 12, 2013 meeting, City Council approved an agreement with CR &R
Incorporated to provide residential solid waste services and transfer station operations
for the City. It is anticipated that these services will begin in late March of 2014. Staff is
recommending that the City enter into a third and final amendment with HF &H for work
in two areas. The first area consists of assistance with the transition from City provided
services to expanded services with CR &R Incorporated. In the second area, HF &H will
provide ongoing contract management assistance for the first year of operation with
CR &R Incorporated. This work is outlined in Exhibit A of Amendment No. Three.
The first year of operations with CR &R Incorporated will be critical to the long term
success of the Agreement. Assistance from HF &H will provide for a smooth, successful
transition.
ENVIRONMENTAL REVIEW
Staff recommends the City Council find this action its not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
marK Harmon
Director
Attachment A; Amendment No. Three to Professional Services Agreement With
HF &H Consultants, LLC for Evaluation of Residential Solid Waste
Collection Services Proposals
AMENDMENT NO. THREE TO
PROFESSIONAL SERVICES AGREEMENT
WITH HF &H CONSULTANTS, LLC FOR
EVALUATION OF RESIDENTIAL SOLID WASTE COLLECTION SERVICES
PROPOSALS
THIS AMENDMENT NO. THREE TO PROFESSIONAL SERVICES
AGREEMENT ( "Amendment No. Three ") is made and entered into as of this 27th day of
November, 2013 ( "Effective Date "), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ( "City "), and HF &H CONSULTANTS,
LLC, a California limited liability company ( "Consultant "), whose address is 19200 Von
Karman Ave, Suite 360, Irvine CA 92612, and is made with reference to the following:
RECITALS
A. On June 28, 2013, City and Consultant entered into a Professional Services
Agreement ( "Agreement ") to conduct an evaluation of residential solid waste
collection services proposals ( "Project ").
B. On August 12, 2013, City and Consultant entered into Amendment No. One to
the Agreement ( "Amendment No. One ") to reflect additional Services not
included in the Agreement and to increase the total compensation.
C. On September 25, 2013, City and Consultant entered into Amendment No. Two
to the Agreement ( "Amendment No. Two ") to reflect additional Services not
included in the Agreement or any prior amendments and to increase the total
compensation.
D. City desires to enter into this Amendment No. Three to reflect additional Services
not included in the Agreement or any prior amendments, to extend the term of
the Agreement to March 31, 2015 and to increase the total compensation.
E. City and Consultant mutually desire to amend the Agreement, as provided below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on June 28, 2013, and shall
terminate on March 31, 2015, unless terminated earlier as set forth herein. At the City's
sole discretion, the term of the Agreement may be extended up to three (3) times for an
additional one (1) year per extension by written amendment to the Agreement."
2. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of Work
to Provide Transition and Contract Management Services, attached hereto as Exhibit A
and incorporated herein by reference ( "Services" or "Work "). Exhibit A of the
Agreement, Exhibit A of Amendment No. One, Exhibit A of Amendment No. Two and
Exhibit A of Amendment No. Three shall collectively be known as "Exhibit A ". The City
may elect to delete certain Services within the Scope of Services at its sole discretion.
3. COMPENSATION TO CONSULTANT
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to-
exceed basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and incorporated herein by reference.
Consultant's compensation for all Work performed in accordance with this Agreement,
including all reimbursable items and subconsultant fees, shall not exceed One Hundred
Ninety -Seven Thousand Eight Hundred Dollars and 00 /100 ($197,800.00) during the
term of this Agreement as amended herein, without prior written authorization from City.
No billing rate changes shall be made during the term of this Agreement without the
prior written approval of City."
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. Three,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Seventy -Nine Thousand Dollars and 00/100 ($79,000.00).
Should the City exercise its option to extend the Agreement as provided for in
Section 1 of the Agreement, as amended, compensation during the extended Term or
Terms shall be in substantial conformance with Exhibit B to Amendment No. Three.
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
HF &H Consultants, LLC Page 2
IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to
be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
CITY OF NEWPORT BEACH,
a California municipal corporation
By: 4aA,I ( / u ` , l P )r By:
Aaron C. Harp' Keith D. Curry
City Attorney Mayor
ATTEST:
Date:
CONSULTANT: HF &H Consultants, LLC,
a California limited liability company
By: By:
Leilani I. Brown Laith Ezzet
City Clerk Senior Vice President
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Work to Provide Transition and Contract
Management Services
Exhibit B — Schedule of Billing Rates
HF &H Consultants, LLC Page 3
I N..ifTon-I
Scope of Work to Provide Transition and Contract Management Services
Background
At the City Council meeting on November 12, 2013, the City of Newport Beach City
Council voted to outsource residential solid waste collection and awarded an agreement
(Hauler Agreement) to CR &R. The term of the negotiated Hauler Agreement is seven
(7) years, beginning March 31, 2014, with a City option to extend the Hauler Agreement
for up to three (3) additional years.
Four (4) communities in the City receive residential service under other exclusive
collection agreements with private haulers:
• Newport Coast and Santa Ana Heights, which are serviced by CR &R; and,
• Bonita Canyon Subdivision /Belcourt and Newport Terrace, which are serviced by
Waste Management.
The City also has separate contracts with:
• Ware Disposal for City facilities collection;
• Rainbow Environmental Services for collection of beach containers;
• Robert's Disposal for collection of street and park containers; and,
• Athens Services for street sweeping.
Project Objective
The City has requested HF &H to assist in monitoring the transition from City solid waste
collection service to CR &R's service, and to subsequently provide contract
management and oversight to ensure CR &R complies with the terms of the Hauler
Agreement for the services areas previously served by City crews.
Scope of Work
Task 1: Transition Assistance (to be completed by the date CR &R begins
residential solid waste collection service except as noted * *)
The City is transitioning to a private waste collector and transitioning from unlimited,
once per week, manual trash collection in customer — provided containers, to a two -cart
automated collection system. Under the new two -cart system, each residential customer
will be provided one or more refuse containers and, at the customer's option, a recycling
container (recycling container is optional) (size selected by customer). Use of the
recycling container by residents is optional. A portion of the refuse container material
will be processed at a material recovery facility to recover recyclables and green waste.
The City and CR &R will need to undertake numerous tasks in order to ensure a smooth
transition. HF &H has assisted cities through this process to minimize disruption to
customers and to ensure programs are properly implemented in a timely manner.
HF &H Consultants, LLC Page A -1
HF &H will review the detailed transition plan to be developed by CR &R and monitor it
for consistency with the Hauler Agreement requirements. CR &R's transition plan will
need to address, among other items, the following:
Cart and container design requirements
Container delivery plan
• Solid waste vehicle requirements
• Employment of former City employees
• List of drivers, including documentation of appropriate class licenses
• Routing schedule and coordination with street sweeping services
• Procedures for identifying, removing and recycling of residents' existing cans
• Public education and outreach during the transition period
• Cart selection mailing
• Initial transition mailing(s) prior to the start of collection services
• Website
• Semi - annual notice /Newsletter — schedule
• Quarterly notice /Newsletter — schedule
• Corrective action notices
• Notification to City of dedicated Route Supervisor, and Contract and Service
Liaisons
Purchase of City collection vehicles within thirty (30) days of Hauler Agreement
execution
• Customer service surveys at completion of six (6) months of service*
The following tasks proposed by HF &H are for the transition assistance and ongoing
contract management assistance associated with the Hauler Agreement between the
City and CR &R and do not include performance of these tasks for other agreements
executed by the City.
HF &H will assist with the following services:
Task 1A: Develop and Monitor Detailed Transition Calendar and Hauler Requirements
Checklist
During the transition, it is critical that key tasks are completed by certain dates.
Examples include obtaining equipment, receiving and testing route data, public
education, and community workshops.
HF &H Consultants, LLC Page A -2
Challenge:
Many of the transition tasks are successive and dependent upon the successful
completion of previous tasks. If tasks are missed or delayed there is the
potential for equipment delivery delays, inadequate public education and
outreach, insufficient driver familiarity with route challenges, and other issues.
HF &H Solution:
HF &H will develop a comprehensive Transition Schedule and CR &R
Requirements Checklist to guide the transition process. HF &H will monitor
transition progress and compliance in meeting deadlines by meeting with CR &R
and City staff on a periodic basis during the transition period. This task will also
include interim telephone conversations between HF &H staff, CR &R, and /or City
staff.
Task 18: Review and Revision of Public Outreach Materials
The City's residents have historically received service from municipal crews and
have used resident- provided containers and bags for mixed solid waste. Under
the new Hauler Agreement, residents will receive CR &R- provided refuse and
recycling carts (the later if desired), and will be allowed to place additional solid
waste in their own containers and bags for collection. There are also new
services included in the new Hauler Agreement such as a Sharps collection
program, enhanced bulky item collection, and door -to -door household hazardous
waste collection.
Challenge:
Residents must be made aware of and understand the new collection and
enhanced program options available under the new Hauler Agreement. A
successful transition will require thoughtful and accurate public education and
outreach. Exhibit B, Section B.7 of the Hauler Agreement requires CR &R to
develop printed public education materials, a dedicated web site page for City -
specific information, and classroom education curriculum.
HF &H Solution:
HF &H will review public education and outreach materials developed by CR &R
for accuracy and consistency with the provisions of the Hauler Agreement. It is
HF &H's understanding that CR &R will be conducting a series of public meetings
to provide residents with information on the new services; HF &H will review the
meeting- content developed by CR &R for these meetings.
Task 1C: Review Reporting Forms
The Hauler Agreement requires CR &R to submit monthly and quarterly reports.
Challenge:
Accurate and comprehensive reporting by CR &R is imperative to ensure that the
City is in compliance with State diversion requirements. Under AB 939,
HF &H Consultants, LLC Page A -3
jurisdictions are required to submit information to CalRecycle on solid waste
diversion programs including descriptions of the programs, and tonnage diverted
by material for each program.
HF &H Solution:
HF &H will review the hauler reporting forms for consistency with the Hauler
Agreement requirements.
Task 2: Ongoing Contract Management Assistance
Task 2A: Develop CR &R Compliance Matrix and Hauler Agreement Summary Sheet
Challenge:
Ensure CR &R compliance with new Hauler Agreement. The City's new Hauler
Agreement includes reporting, minimum diversion, compensation adjustment,
public education, and additional service and facility use requirements. CR &R's
negotiated rates include performance of these requirements and it is important
that the City is confident that these requirements are being met in their entirety.
HF &H Solution:
HF &H will develop a CR &R compliance matrix which will be reviewed at each
meeting with CR &R and the City to ensure compliance with all contractual
requirements. Additionally, HF &H will develop a Hauler Agreement summary for
the City which categorizes requirements such as new services (e.g., bulky item,
household hazardous waste, sharps, and abandoned item collection). This
document will allow the City to easily provide information to residents and City
staff regarding new and enhanced programs and assist in CR &R compliance.
Task 28: Review of Hauler Reports
Challenge:
The City is required to meet certain diversion requirements.
HF &H Solution:
HF &H will review CR &R's reports submitted to the City to ensure that the
information is consistent with the Hauler Agreement requirements.
In addition, HF &H will perform trend analyses on tonnage data submitted by
CR &R to the City and present our findings during regular meetings. These
analyses allow real -time tracking of new solid waste programs by measuring the
generation of different types of waste (such as refuse disposed, and recyclables
recovered) over an extended period of time.
Task 2C: Meetings with CR &R and City
Challenge:
HF &H Consultants, LLC Page A -4
Address CR &R compliance, diversion, or reporting issues before they become
problems. If CR &R reports are not reviewed on a monthly basis, issues can be
overlooked, and these issues that may have been easily resolved can turn into
compliance issues for the City.
HF &H Solution:
HF &H has developed strategies to ensure CR &R compliance, assess program
issues /concerns, and expedite program data and information collection. HF &H
understands that City staff time is valuable, and these strategies have evolved
over the course of our engagements in order to maximize the effectiveness of
our meetings and to ensure efficient use of resources.
The items contained in our meeting documents will include, but are not limited to:
o Trend analyses of tonnage in order to track progress and discern anomalies.
o A matrix of CR &R responsibilities based on requirements contained in the
Hauler Agreement.
o New regulatory developments that may impact the provision of residential
solid waste services.
Meeting documents will be forwarded to all stakeholders prior to the meeting in
order to allow each participant adequate time to prepare for the meeting. HF &H
will take the minutes of the meeting and, subsequently, distribute the meeting
summary, which includes tasks discussed at the meeting, parties responsible
for completing these tasks, and dates for which tasks are due.
Task 2D: Review of Public Outreach Materials
Challenge:
The new two -cart collection system will encourage residents to separate trash (if
residents choose to do so) and recyclables and will require ongoing efforts to educate
the public.
HF &H Solution:
Based on our experience reviewing public outreach strategies and materials in
dozens of local communities, HF &H will coordinate with CR &R to ensure that ongoing
public outreach efforts are effective.
Task 2E: Verify Achievement of Diversion Requirement
Challenge:
The contract requires CR &R to divert 45% of the waste collected and contains
financial penalties assessed on a per ton basis if the diversion target is not
achieved.
HF &H Solution:
HF &H Consultants, LLC Page A -5
HF &H will monitor CR &R's diversion on a monthly basis for compliance with terms
of the Hauler Agreement and calculate penalties if the required diversion is not
achieved. HF &H will track year -to -date performance of diversion to monitor
compliance.
Task 2F: Review Annual Compensation Adiustment Calculation
Challenge:
The contract provides for an annual compensation adjustment using a formula
defined in the Hauler Agreement based on published price indices for various cost
components and the cost of disposal at the Orange County landfill system. The
rate adjustment formula contains a variety of caps and limits on future rate
adjustments.
HF &H Solution:
HF &H will verify the accuracy of the indices and supporting computations used in
CR &R's compensation adjustment request and confirm that it is consistent with the
terms of the Hauler Agreement.
HF &H Consultants, LLC Page A -6
EXHIBIT B
SCHEDULE OF BILLING RATES
Fees
HF &H will provide our services based on time and materials.
The estimated cost for Task 1 *: Transition Assistance: $29,500.00
The estimated cost for Task 2 *: Ongoing Contract Management Assistance is $49,500.00
for a twelve -month period.
The total cost for Tasks 1 and 2 is estimated not -to- exceed $79,000.00
*The cost estimate is based on performing the specific contract management tasks
described above under the "Scope of Work" and assumes that City staff will perform
other tasks not included in the Scope of Work such as day -to -day coordination with
CR &R's field personnel or residential customers regarding service requests, missed
pickups, customer complaints, or other routine operations matters. If HF &H is requested
to participate in additional activities, HF &H will participate for an additional fee based on
time and materials.
HF &H will bill the City once per month based on the number of hours worked multiplied
by our hourly billing rates, plus expenses incurred. Payment is due within thirty (30) days
of approval of invoice. Hourly rates for our consultants during the initial term of the
Agreement are as follows:
Position Hourly Rate
President/Senior Vice President: $259
Vice President: $235
Director /Sr. Project Manager: $219
Project Manager: $199 to $215
Senior Associate: $145 to $165
Associate Analyst:
$135
Assistant Analyst:
$105
Administrative Staff:
$95
Intern Consultant:
$45
Expenses
Mileage: $0.555 per mile*
Document reproduction (black and white): $0.15 per page **
HF &H Consultants, LLC Page B -1
Color document reproduction: $0.75 cents per page **
Outside document reproduction /couriers /postage Actual
Public conveyances and parking: Actual
All other out -of- pocket expenses: Actual
*Or as adjusted by IRS allowance
** Over 20 pages per run
Adjusted Position Hourly Rates
In the event the City opts to extend the Agreement, pursuant to Section 1 of the
Agreement as amended, the rates and compensation for the Ongoing Contract
Management Assistance Task (Task 2) shall be adjusted each year beginning April 1,
2015, based on an annual CPI adjustment as further detailed below.
Upon the first anniversary of April 1, 2014 and upon each anniversary thereafter, the
rates and compensation set forth in Exhibit B ('Billing Rates ") shall be adjusted in
proportion to changes in the Consumer Price Index, subject to the maximum adjustment
set forth below. Such adjustment shall be made by multiplying the Billing Rates in
Exhibit B by a fraction, the numerator of which is the value of the Consumer Price Index
for the calendar month three (3) months preceding the calendar month for which such
adjustment is to be made, and the denominator of which is the value of the Consumer
Price Index for the same calendar month immediately prior to April 1, 2014. The
Consumer Price Index to be used in such calculation is the "Consumer Price Index, All
Items, 1982 -84 =100 for All Urban Consumers (CPI -U) ", for the Los Angeles-Riverside-
Orange County Metropolitan Area, published by the United States Department of Labor,
Bureau of Labor Statistics. If both an official index and one or more unofficial indices are
published, the official index shall be used. If said Consumer Price Index is no longer
published at the adjustment date, it shall be constructed by conversion tables included
in such new index. In no event, however, shall the amount payable under this
Agreement be reduced below the Billing Rates in effect immediately preceding such
adjustment. The maximum adjustment increase to the Billing Rates, for any year where
an adjustment is made pursuant to this Section, shall not exceed 2.5% of the Billing
Rates in effect immediately preceding such adjustment.
HF &H Consultants, LLC Page B -2