HomeMy WebLinkAbout2021-09-28 - AGENDA REPORTS - AMEND CONTR SOLID WASTE CONSULT (2)7
Agenda Item:6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: September 28, 2021
AMEND EXISTING CONTRACT WITH SOLID WASTE
SUBJECT:
CONSULTANT
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
1. Authorize a contract increase in the amount of $90,371 from $94,990 to $185,361, and
authorize a contingency in the amount of $19,048 to the contract with R3 Consulting Group,
for a total amount not to exceed $204,409.
2. Appropriate $204,409 from General Fund, Fund 100, Fund Balance to Solid Waste
Expenditure Account 1007201-516101.
3. Authorize the City Manager or designee to execute all documents, subject to City Attorney
approval.
BACKGROUND
The current franchise agreements with the commercial and residential waste haulers are due to
expire on June 30, 2023. At the April 27, 2021, City Council meeting, a contract was awarded to
R3 Consulting Group, Inc. (R3) to negotiate extensions to the commercial and residential
franchise agreements, and to amend the Santa Clarita Municipal Code to comply with SB1383
regulations. Extensions to the franchise agreements were to include improvements in customer
communication, rate methodology adjustments, flow control, and extension of the term for both
the residential and commercial franchises.
During the preliminary work effort to negotiate extensions to the franchise agreements, it became
clear that the waste haulers would require a substantial rate increase before they would be willing
to extend the term of their agreements. In light of this information, staff recommends the City of
Santa Clarita (City) execute a competitive bid process for solid waste services. This will ensure
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that Santa Clarita residents and businesses receive solid waste services at competitive market
rates.
In order to complete the work required to obtain new franchise agreement(s) and comply with
SB1383, R3 has prepared a revised scope of work. This scope of work includes preparing the
ordinances and programs required for the City to come into compliance with SB1383, and
providing the services to prepare and complete a competitive request for proposal process,
including a revised franchise agreement and hauler negotiations.
The revised scope of work identifies a total contract cost of $204,409 if two separate haulers are
selected to provide commercial and residential waste services in the City. If only one hauler is
ultimately selected, the total contract cost will be $185,361, due to the reduced cost of
negotiation services in the amount of $19,048. Once the waste hauler(s) agreement(s) are
awarded, one of the conditions of the agreement(s) is that the hauler(s) will reimburse the City
for the funds spent on this process.
It is anticipated that the project will be complete by January 2023 in order to allow the awarded
hauler(s) the time to prepare for providing service on July 1, 2023.
ALTERNATIVE ACTION
Other actions as determined by the City Council.
FISCAL IMPACT
The requested appropriation of $204,409 will provide adequate budget needed for the amended
contract. If only one hauler is selected, the contingency amount of $19,048 will be returned to
the General Fund.
ATTACHMENTS
Procurement Assistance - R3 Proposal (available in the City Clerk's Reading File)
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August 25, 2021
Ms. Laura Jardine
Project Technician, Environmental Services
City of Santa Clarita
submitted via email:ljardine@santa-clarita.com
cwilliams@santa-clarita.com
SUBJECT:Proposal for Procurement of Solid Waste Services
Dear Ms. Jardine,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached proposal to extend our Solid Waste
Franchise Agreements Consultant Services to include assistance in the procurement process for solid
waste collection services.Our team is uniquely qualified to provide the requested services to the City in
that we already have a solidworking knowledge of the City’s solid waste agreements and rates thanks to
prior work conducting initialanalysis in 2019and our most recent work assisting City staff determine next
stepsfor the City’s solid waste agreements. As a result of that work we have a thorough understanding of
the work to be performedvia this engagement.
Beyond understandingSanta Clarita’s needs, R3 has a proven trackrecord of successful and
cost-effective franchise agreement negotiations throughout California. Moreover,we are one of few
municipal solid waste consulting firms with robust experience simultaneouslyincluding SB 1383
requirements into franchise agreements while also updating solid waste ordinancesto be compliant with
the law and planning for their own compliance programs. SB 1383 has complexrequirements which affect
many aspects of solid waste collection and post-collection systems.
Carrie Baxterwill serve as Project Manager and primary point of contact for this engagement.She brings
over a decade of experience with a wide range of solid waste operational, planning, and financial
projects, including direct experience working with Allied/Republic Services, Athens Services, EDCO
Disposal/BurrtecWaste Industries, Cal-Met, CR&R,and Waste Management.Garth Schultzwill serve as
project management support to Carrie andPrincipal-in-Charge. He has direct working experience with the
City, as well aswith Burrtec, and has the authority to contractually obligate R3 and negotiate contacts on
behalf of the organization.Richard Tagore-Erwinwill provide procurement expertise support to both
Carrie and Garth. In addition to our current proposed team, Carrie and Garth will be supported by Scott
Hanin, and Lisa Coelho–resumes for Scott and Lisa are availableupon request.
We appreciate the opportunity to submit our proposal to theCity. Should you have any questions
regarding our proposal or need any additional information, please don’t hesitate to reach out directly.
Sincerely,
Carrie Baxter|Project ManagerGarth Schultz | Principal-in-Charge
R3 Consulting Group, Inc.R3 ConsultingGroup, Inc.
916.878.7413|cbaxter@r3cgi.com510.292.0853 | gschultz@r3cgi.com
1512 Eureka Road, Suite 220, Roseville, CA 95661 | p916.782.7821 | f916.782.7824 | www.r3cgi.com
1. SCOPE OF WORK
Based on City Council approval of the following scope of work, no additional work would be completed on
Tasks 1 and 2 of the current consultant agreement, Tasks 3 and 4 would continue with no change, and
Tasks 5 and 6, as described below, would be added as an amendment to our current Solid Waste
Franchise Agreements Consultant Services to include assistance in the procurement process for solid
waste collection services.
Task 5Prepare Procurement Documents
Task5.1Prepare Request for Proposal (RFP) Package
R3 will develop an RFP package –this includes a finalized RFP, a draft Agreement (Task 5.2), and cost
forms for proposers to complete.This also includes support for the City’s separate pre-qualifications
process, should the City decide to initiate such a process.
The RFP will specify minimum requirements and qualifications and will require proposers to submit work
plans that specify how they will transition to new services, achieve diversion requirements, implement
customer service programs, and promote public education activities.
Separate sections of the RFP may include, for example:
Section 1:General Introduction to the RFP Document
Section 2:Available Demographic and Service Account Data
Section 3:Current Services and Requested Service Requirements
Section 4:Communication Protocol for Contractors and the City, Qualification Requirements,
and the Required Submittal Format
Section 5:Required Work Plans
Section 6:Evaluation Criteria and Evaluation Process
Section 7:Proposal Cost and Service Forms
Section 8:Draft Agreement
We will prepare a draft staff report and presentation material, attend one (1) City Council meeting to
present the details of the draft RFP, and develop evaluation and selectionprocess options for discussion
and approval prior to release.
Task 5.2Prepare New Franchise Agreement
R3will draft the new Agreement for review by the City. The Agreement will utilize provisions of the current
franchise agreements but add a series of performance measures to provide the hauler and the City with
clear criteria to monitor hauler performance.
The performance requirements will establish minimum service standards for inclusion in the Agreement
that are both quantifiable and easily measured to verify compliance. Upon completion by City staff and
R3, the performance requirements will be incorporated into the draft Agreement.
Performance requirements may include, but are not necessarily limited to, the following:
Disposal facility requirements;
Minimum waste diversion requirements;
Collection vehicle emissions standards and requirements;
Collection vehicle weight, size and noise limitations;
Specifications for container size, color, and labeling;
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City of Santa Clarita |Proposal for Procurement of Solid Waste Services
Public education program requirements (e.g., quarterly newsletter, annual campaigns, classroom
presentations, etc.);
Collection and recycling services to City offices, facilities and events;
Collection service hours;
Collection service quality standards; and
Collection driver uniforms and identification badges.
Task5Deliverables
One (1) written report that includes recommendations to the City Manager;
One (1) PowerPoint presentation of the RFP and new Agreement to the City Council; and
Attendance and presentation at one (1) City Council meeting.
Task 6Competitive RFP Process
Based on City direction, R3 willfinalize the RFP package and provide the City with an electronic copy.
Task 6.1Issue RFP
R3 has an extensive list of solid waste companies operating in California and nationally and will provide a
mailing list to the City for consideration when sending out the RFP package. The Project Team will work
with the City to publicize the availability of the RFP package andwill also provide the City with a draft
notice of the availability for release on City letterhead and work with City staff to post the RFP on the
City’s website.
Task 6.2Conduct Mandatory Pre-Proposal Meeting and Prepare the RFP Addenda
R3 will conduct a mandatory pre-proposal meeting with prospective proposers. The pre-proposal meeting
will provide the opportunity for the City to review the RFP with prospective proposers and answer
questions as appropriate.
We will prepare written responses to questions raised before and during the pre-proposal meeting for
submittal to all parties at the meeting. In addition, the Project Team will prepare addenda to the RFP as
necessary.
Task 6.3Evaluate Proposals Received
R3 will assist the City with the evaluation of proposals received in response to the RFP. The evaluation
will include, but not be limited to, conducting an initial “pass-fail” checklist against RFP minimum
requirements, and evaluating the proposers’ qualifications, references, processing and disposal facilities,
approach to meeting the City’s diversion requirements, customer rates (prices), collection methods,
customer service programs, financial statements, transition experience and work plans.
After the initial evaluation is completed, we will prepare any written requests for clarification to the
haulers, as necessary. In the event a proposal does not meet the minimum requirements of the RFP, we
will recommend that the proposal be disqualified as non-compliant with the RFP requirements.
R3’s role in the evaluation process will also include facilitating the evaluation meetings, and the proposer
interviews, along with several meetings with City staff, the subcommittee, and presentations to the City
Council to present (1) a summary of the proposals received, including options (e.g., single hauler or
separate haulers based on line of businesses, collection/processing systems, proposed enhancements)
(2) the results of the evaluation process.
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City of Santa Clarita|Proposal for Procurement of Solid Waste Services
Task 6.4Negotiate with Top Ranked Proposer(s)
Based on direction from City Council,R3 will participate in Agreement negotiations with the top ranked
proposer(s). Negotiationswill focus on clarifying the proposer’s services and cost proposal and
incorporating any optional services as may be selected by City Council. This subtask will include
meetings with the City beforehand to confirm our approach for the negotiations.
Task 6.5Finalize New Agreement for City Council Approval
R3 will present the results of the evaluation process to City Council, including recommendations made by
the evaluation team. This will include a summary of the proposal process, proposals received, the
evaluation process, and the results and recommendations for award of the Agreement.
Based on direction from City Council, we will incorporate any program changes or options selected by
City Council and finalize the Agreement. This will include incorporating changes to the draft agreement
through the issuance of addenda by the City, any final program options selected during the selection
process, proposed rates, final work plans, exhibits, etc.
Task6Deliverables
One (1) finalized RFP package, in electronic format, that includes a background of the service
area, requested services, RFP preparation instructions, evaluation and selection criteria, project
schedule, draft Agreement, and all required cost and supporting forms to be filled out by the
proposers(for distribution to potential proposers);
A mailing list of prospective proposers, for use in City’s distribution of the RFP package;
Preparation of a notice of availability of the RFP document and how proposers may obtain copies;
Presentation during one (1) mandatory pre-proposal meeting with interested companies;
Written responses to questions submitted before and during the pre-proposal meeting;
Preparation of all necessary addenda to the RFP;
Initial assessment of minimum requirements of each proposal received;
Evaluation of the technical feasibility of each qualified proposal received;
Evaluation matrix to easily compare the proposed programs and rates for each proposer;
Preparation of any written request for clarification to the proposers, as necessary;
Scheduling and conducting interviews with up to four(4)top ranked proposers;
Preparation of staff report that summarizesthe proposals received;
Support at up to two (2) meetings (subcommittee or City Council) to present summary of
proposals and the results of the evaluation process.
Up to six(6) negotiation sessionswith top ranked proposer(s);
Recordkeeping ofoutstanding service, cost, and Agreement issues to be negotiated with the top
ranked proposer(s);
Revisions to the Agreement(s)based on the results of the negotiation sessions;
Preparation of a draft staff report to the City Council to support the staff recommendation to
execute an Agreement(s)with the selected company(ies);and
Support at City Council meeting summarizing the results of the final negotiations and presenting
the final Agreement(s) for approval.
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City of Santa Clarita|Proposal for Procurement of Solid Waste Services
2.PROJECT SCHEDULE
Tentative Schedule
R3 proposes the following tentative schedule for work completion, with the project beginning in October
2021 and completing by the end of July 2022. This schedule will allow for an11-month transition period to
new services following award of the new Agreement(s).
Notethat this schedule is tentative and subject to change –actual schedule will depend on several
factors and may result in completion of the project as late as December 2022.
TASKSTART DATECOMPLETION DATE
5.Prepare Procurement DocumentsOctober 2021February 2022
5.1.Prepare RFP PackageOctober 2021February 2022
5.2.Prepare New Franchise AgreementOctober 2021February 2022
6.Competitive RFP ProcessApril 2022December 2022
6.1.Issue RFPApril 2022
6.2.Conduct Mandatory Pre-Proposal
May 2022
Meeting and Prepare the RFP Addenda
6.3.Evaluate Proposals ReceivedJune2022August 2022
6.4.Negotiate with Top Ranked Proposer(s)August 2022October 2022
6.5.Finalize New Agreement for City
October2022December2022
Council Approval
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City of Santa Clarita |Proposal for Procurement of Solid Waste Services
3. PROJECT BUDGET
Wepropose to complete the amended Project Scope of Workon a time-and-materials basis for a not-to-
exceed budgetby task totaling$204,409.These proposed Tasks 5and 6replace the existing Tasks 1
and 2 (Conduct Analysis and Amend Restated Agreements) from our existing agreement with the City.
Theoriginal Tasks 1 and 2 had original budgets of $25,840 and $33,720 (respectively),totaling to
$59,560. Of that amount, $7,889 was spent, leaving $51,671 remaining that can be applied to the new
Tasks 5and6.
Thus, the addition of these new tasks represents an increase in contract budget of $109,419.This
includesa $19,048 contingencyTask 6bto account for the possibility that the procurement process will
result in two haulers for the City, instead of one. The basecontract price of $174,675 includes support for
the City’s negotiation of a final contract with just one hauler for the City’s solid waste services; the
contingency would cover negotiations with a second hauler ifthe City decidesto keep two haulers for the
City’ssolid waste services.
Proposed Work Completed Revised Proposal Proposed
Task
03/2021through 08/2021 08/25/2021Remaining Budget
Hours CostHours CostHours CostHours Cost
Conduct Analysis & Provide
1 Amended and Restated 136$25,84033.25$6,98933.25$6,9890$-
Residential Agreement
Conduct Analysis & Provide Amended
2 and Restated 176$33,7204$9004$9000$-
Commercial Agreement
Analyze SB 1383 Compliance
3 Requirements & Provide Amended 134$24,43016.5$2,798134$24,430117.5$21,633
and Restated Municipal Code
Provide Deliverables & Hold
4 Meetings with Staff, Haulers and 56$11,0000$-56$11,00056$11,000
City Council Subcommittee
5 Prepare Procurement Documents137$24,130137$24,130
Competitive RFP Process (One
6a 583$117,913583$117,913
Hauler)
Total Hours50253.75947.25893.5
Total Budget$94,990$10,686$185,361$174,675
Contingency: Competitive RFP
6b 91$19,04891$19,048
Process (Two Haulers)
Total Hours Incl. Contingency50253.751038.25984.5
Total Budget Incl. Contingency$94,990$10,686$204,409$193,723
The budget for Task 3 (Analyze SB 1383 Compliance Requirements and Provide Amended and
Restated Municipal Code) and Task 4 (Provide Deliverables, Hold Meetings with Staff, Haulers and
City Subcommittee) are unchanged,and remain as originally proposed and contracted between R3
and the City. The budget includeslaborexpenses for the work and deliverables, as listed in Tasks1 and
2 of this proposal. We would behappy to discuss changes to our scope or budget as may be needed to
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City of Santa Clarita|Proposal for Procurement of Solid Waste Services
align with the City’s needs.Please note that this budget includes periodic phone/zoom check-ins with staff
on a reasonable,as-needed basis at no extra cost, but does not include travel, which is included for the
supplemental costs for in-person meetings as shown in our proposal submitted to the City on March 30,
2021($3,660 per in person meeting).
Billing Rates
In the table below, we have provided our hourly billing rates for the R3 Project Team that may be involved
in providing solid waste consultant services. These hourly rates will becomeeffective January1, 2022
and are subject to periodic adjustments based on CPI.
CLASSIFICATIONHOURLY RATE
Principal$265per hour
Project Director$235per hour
Senior Project Manager$205per hour
Project Manager$185per hour
Senior Project Analyst$ 165 per hour
Senior Administrative Support$ 160 per hour
Project Analyst$155 per hour
Associate Analyst$145 per hour
Administrative Support$125per hour
REIMBURSABLE COSTS
Consultants/SubcontractorsCost plus 10%
Lodging and mealsDirect cost
Travel -Private or company car At Current Federal Rate
Travel -Other Direct cost
Delivery and other expensesDirect cost
Payments
Unless otherwise agreed in writing, fees for work completed will be billed monthly at the first of each
month for the preceding month and will be payable within 30 days of the invoice date.
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City of Santa Clarita|Proposal for Procurement of Solid Waste Services