Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with Hilton Farnkopf & Hobson Consultants, LLC for Solid Waste Consulting Services in an Amount Not-to-Exceed $530,000.
In accordance with California Environmental Quality Act (CEQA), this project is categorically exempt pursuant to CEQA Guidelines Section 15308. (Public Works 26141630)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On May 18, 2021, City Council approved a 12-year Solid Waste, Recycling and Organics Collection Franchise Agreement (Agreement) with Alameda County Industries (ACI) for the collection, transportation, and processing of the City of Alameda's (City) municipal solid waste. The Agreement states that service rates for collection shall be adjusted on an annual basis, with ACI submitting its rate adjustment application in accordance with the parameters specified in the Agreement. Historically, the City has utilized consultant services to assist the City in performing the annual rate adjustment and various on-call waste issue needs. The most recent agreement for these services has now expired. Staff issued a Request for Proposals on January 24, 2025, and following due process, staff recommends City Council authorize the City Manager to enter into a 5-year agreement (Exhibit 1) with Hilton Farnkopf & Hobson Consultants, LLC (HF&H) consultants for solid waste consulting services.
BACKGROUND
As part of its Agreement with ACI, the City is required to adjust refuse collection service rates on an annual basis. The franchise agreement uses two different kinds of rate adjustment: a cost-based methodology every four years with ACI submitting its rate adjustment application to the City’s Contract Manager by February 1 and an index-based methodology in the intervening years due by April 1. Both methodologies are outlined in the Franchise Agreement (Exhibit 2).
The rate application documents all calculations and includes all supporting schedules, records of per-ton charges for approved facilities, changes in governmental fees at approved facilities, and any other documentation or evidence determined by the City Contract Manager to be reasonably necessary to ensure the calculation of rate adjustments is performed in strict accordance with the requirements set forth in the Agreement. It is the role of the solid waste consultant to analyze the financial statements and operational data of the franchisee to confirm adherence to the terms of the franchise agreement. This process includes, at a minimum: review of compensation adjustment terms; rate revenue and expense review; commodity revenue review; balancing account update; and verifying the accuracy of rate adjustment calculations to ensure they align with the agreed upon formulas and contract terms. Following the analysis, the contractor prepares a detailed report that includes findings and recommendations for rate adjustments.
In addition to the annual rate adjustment process, the City has need for additional on-call consulting services related to various solid waste policy and legislative matters that may impact the City and its ongoing efforts to achieve zero waste.
For the past five years, the City has utilized the services of HF&H consultants to perform the annual rate adjustment process and provide ad hoc consulting services related to various solid waste policies and programs. This agreement expired as of July 6, 2024.
DISCUSSION
On January 24, 2025, City staff issued a Request for Proposals (RFP) for solid waste consulting services to assist with annual rate review applications and on-call consulting services related to various solid waste policies and programs. After a submittal period of 13 days, staff received four proposals. Based on review of the proposals and the criteria of the RFP, staff recommend that HF&H consultants represents the vendor best able to meet the City’s needs and recommends awarding a five-year agreement in an amount not-to-exceed $530,000. Staff recognizes the importance of having a consultant who is well-versed in the City’s Franchise Agreement with ACI and in possession of a thorough understanding of the City’s previous history and future aims relating to both rates and zero waste goals. Having served the City for the last five years on rate application review and provided consultant expertise for the current Agreement with ACI, HF&H is uniquely qualified to assist with the tasks at hand and will not need additional time, and related costs, to get acclimated to the project. It is imperative that the City adhere to the timeline described in the Agreement with ACI and ensure that rate payers are notified in a timely manner of any changes to rates. It is for these reasons staff is recommending HF&H consultants be awarded the five-year agreement.
Below are the proposer’s total costs for a five-year period.
|
Proposer |
Location |
Proposed 5-Year Total |
|
HF&H Consultants |
Walnut Creek, CA |
$530,000 |
|
Mitchells Transport |
San Francisco, CA |
$362,250 |
|
Raftelis |
Los Angeles, CA |
$556,500 |
|
Crowe LLP |
Sacramento, CA |
$212,350 |
ALTERNATIVES
• Authorize the City Manager to execute a contract with HF&H Consultants as presented above.
• Redirect staff to acquire the resources to perform the annual rate adjustment request. As staff do not currently possess the specialties required to perform this operation currently, this option will require additional staff resources, training and adjustment of staff priorities to fulfill the obligation
• Do not authorize the new agreement and direct staff to produce another RFP for rate adjustment services and general consulting.
FINANCIAL IMPACT
The funds for this agreement are budgeted in the Public Works Operating Budget for the Integrated Waste Program for Fiscal Year 2024-25, funded from the Integrated Waste Fund (26141630). Funding for subsequent years in the agreement is subject to City Council appropriations approval. There is no impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. The work in this agreement is consistent with the Climate Action and Resiliency Plan (CARP, 2019), the Zero Waste Implementation Plan (ZWIP, 2010), ZWIP Update (ZWIP, 2018) and the City’s Strategic Plan priorities to build resilience to Climate Change and Water Level Rise.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The City’s CARP assumes full implementation of the 2018 ZWIP and its intended reductions in greenhouse gas emissions through 2030. The services rendered in this agreement support diverting waste, including organics, from the landfill, which reduces methane emissions. The importance of reducing methane emissions from municipal waste sent to the landfill is codified in California’s Senate Bill 1383 passed in 2016.
RECOMMENDATION
Recommendation to authorize the City Manager to execute a five-year agreement with HF&H consultants for solid waste consulting services in an amount not-to-exceed $530,000.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Marc Green, Program Specialist
Financial Impact section reviewed,
Ross McCarthy, Acting Finance Director
Exhibits:
1. Agreement
2. ACI Franchise Agreement Appendix C - Rate Adjustment Methodology