HomeMy WebLinkAbout1P OCRCITY COUNCIL STAFF REPORT
DATE: January 28, 2021 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 2 TO CONSUL TING SERVICES
AGREMEENT WITH SLOAN VAZQUEZ McAFEE
FROM: David H. Ready, City Manager
BY: Development Services Department, Office of Sustainability
SUMMARY
The City Council will consider an amendment to the City's contract with Sloan Vazquez,
Inc., dba Sloan Vazquez McAfee ("Consultant"), the City's solid waste hauling and
recycling consultant. The amendment as proposed would expand the scope of
Consultant's services to include support for the City's efforts to comply with the
requirements of SB 1383 Short Lived Climate Pollutants (SLCP): Organic Waste
Methane Emissions. State regulations implementing SB 1383 were approved on
November 3, 2020, and take effect January 1, 2022. Support will focus on providing
implementation advice, assistance in incorporating requirements from SB 1383 into the
"Franchise Agreement Between The City of Palm Springs And Palm Springs Disposal
Services" (the Franchise Agreement), and analysis of value of new services.
RECOMMENDATION:
1. Approve Amendment No. 2 to the Consulting Services Agreement with Sloan
Vazquez McAfee, ATTACHMENT A in substantially the form attached.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The City entered into a Consulting Services Agreement, Agreement A7165, with
Consultant to assist with (i) the review and analysis of the Franchise Agreement, a
document referenced as the "Side Letter," and specific proposed amendments to the
Franchise Agreement, including rate adjustments, and (ii) discussions and negotiations
with Palm Springs Disposal Services (PSDS) related to each and all of those items.
Consultant has worked closely and effectively with Staff to date.
The Consulting Services Agreement was amended in July 2018 to enable Consultant to
provide additional support to the City in its "performance review" of Palm Springs
Disposal Services under the Franchise Agreement.
rreM NO. ...... \ 1\J___._
2City Council Staff Report January 28, 2021 --Page 2 Amendment to Contract with Sloan Vazquez McAfee As a result of the work that Consultant has performed over the past several years, they bring tremendous expertise to the table with respect to the significant and complex solid waste and recycling issues the City faces. Consultant's familiarity with the broader solid waste and recycling industry as well as the City's specific Franchise Agreement make them an invaluable resource to City Staff and leadership as the City moves forward with implementing changes necessary to comply with SB 1383 and the implementing regulations. SB 1383 represents a sweeping change to the State's efforts to manage organic waste and recycling. Although it is an air regulation aimed at reducing greenhouse gas emissions, it is largely focused on reducing the amount of organic waste sent to landfills due to the significant impact these materials have on methane emissions after they have been disposed. These changes will have a particular impact on our Franchise Agreement and the work of both the City and Palm Springs Disposal Services. For example: • The City will be required to work with PSDS and other City offices to gather and report on compliance data. • The City and PSDS will be working together to educate and inform the public and businesses about their requirements and to assess and inform them about their compliance through periodic trash and recycling audits. • PSDS will need to provide organics service to all single-family residents and businesses, which includes green waste as well as food waste. The City welcomes assistance from the Consultant as we move forward with this process of revising the Franchise Agreement, especially hearing from them about best practices from other Cities. BUSINESS PRINCIPAL DISCLOSURE: Messrs. Sloan and Vazquez and Ms. McAfee own and manage this corporation. ENVIRONMENTAL ASSESSMENT: The proposed agreement is not a "project" for the purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378. Engagement of this consultant is an organizational or administrative activity by the City of Palm Springs, and it will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.
3City Council Staff Report January 28, 2021 --Page 3 Amendment to Contract with Sloan Vazquez McAfee FISCAL IMPACT: The estimate provided by the Consultant is in the amount of $22,050. See ATTACHMENT B for their proposal. Sufficient funds are available in the Recycling Contractual Services account to cover these costs. Marcus Fuller, ssistant City Manager ATTACHMENTS A. Amendment 2 B. Proposal from Consultant l t. --l ~ Flinn Fagg, Directo~, Development Services
4ATTACHMENT A: Amendment 2
5AMENDMENT No. 2 TO CONSULTING SERVICES AGREEMENT SLOAN VAQUEZ MCAFEE (Agreement No. A7165) THIS AMENDEMENT No. 2 to that certain "Consulting Services Agreement" ("Second Amendment") is made and entered into to be effective on the ___ day of ___ _, 2021, by and between the City of Palm Springs, a California charter city and municipal corporation ("City"), and SLOAN VAZQUEZ, Inc., a California corporation doing business as Sloan Vazquez McAfee ("Consultant") collectively, the "Parties," and each a "Party." RECITALS A. City and Consultant previously entered into a consulting services agreement for professional services arising from and related to the City's solid waste franchise agreement, identified, in the public records of the City as Agreement No. 7165, which was executed by Consultant on July 19, 2017, and entered into on July 19, 2017 (the "Agreement"). Compensation and reimbursement to Consultant for costs and expenses was not to exceed twenty-five thousand dollars ($25,000). B. City and Consultant agreed to amend the original agreement on March 14, 2019 ("Amendment No. 1"), which also eliminated the restrictions placed on the compensation of the Consultant. C. City and Consultant desire to amend the Agreement again to allow for the continued services of Consultant in response to new State requirements that will impact the City's Franchise Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows: AGREEMENT 1. The true and correct recitals above are incorporated by this reference herein as the basis for the Second Amendment. 2. EXHIBIT "A" to the Agreement is hereby amended, to add a fifth and sixth bullet to those listed under the "Scope of Services" and amended by Amendment No. 1, indicating that the Consultant's services shall include the following: • Review and identify changes needed for the Franchise Agreement to reflect SB 1383 requirements and an agreed-upon division of implementation responsibilities.
6• Assess value to the City of PSDS's proposed approach for implementing the necessary changes. 3. Full Force and Effect. This Second Amendment is supplemental to the Agreement, and is by reference made part of said Agreement. All of the terms, conditions, and provisions, thereof, unless specifically modified herein, shall continue in full force and effect. In the event of any conflict or inconsistency between the provisions of this Second Amendment and any of the provisions of the Agreement, the provisions of this Second Amendment shall in all respects govern and control. 4. Corporate Authority. Each of the persons executing the Second Amendment on behalf of a Party hereto warrants that (i) such Party is duly organized and in good standing, (ii) he/she is duly authorized to execute and deliver this Amendment on behalf of said Party, (iii) by his/her execution of this Second Amendment, such Party is formally bound to the provisions of this Second Amendment, and (iv) the entering into this Second Amendment does not violate any provision of any other agreement said Party is bound. IN WITNESS WHEREOF, the parties have executed this Amendment as of the dates stated below. ATTEST: By:-------------Anthony Mejia, City Clerk APPROVED AS TO FORM: By: ____________ _ Jeff Ballinger, City Attorney Date: __________ _ Date: __________ _ "CITY" CITY OF PALM SPRINGS, CA By: ___________ _ David H. Ready, City Manager "CONSULTANT" Sloan Vazquez McAfee By: ___________ _ Joe Sloan, President
7ATTACHMENT B: Proposal from Consultant
8S/oanVAZQUEZMcAFEE --------MUNICIPAL SOLID WASTE ADVISORS Proposal to Provide Assistance with AB 939 Compliance PRESENTED TO: Palm Springs, CA September 16, 2020 3002 Dow Ave., Ste 116 Tustin, CA 92780 866-241-4533 info@sloanvazquez.com
9S/oanv AZQUEZMcAFEE -----------MUNICIPAL SOLID WASTE ADVISORS September 16, 2020 Patrick M. Tallarico, CPF, LEED AP (BD+C) Manager, Office of Sustainability City of Palm Springs 3220 E. Tahquitz Canyon Way Palm Springs, CA 92262 Re: Proposal to Provide Professional Consulting Services Mr. Patrick M. Tallarico: Sloan Vazquez McAfee (SVM) is pleased to present our proposal to assist the City of Palm Springs with SB 1383 compliance. SVM has the knowledge and expertise to assist the City in planning, analyzing, and negotiating solutions that will bring the most value to City in its effort to comply with SB 1383. SVM has been providing municipal consulting services to California cities for over 15 years. As such, we have developed expertise and knowledge in current State legislation including SB 1383. We will use this expertise together with our experience from completing several years of rate reviews and a performance review of PSDS to assess PSDS's capabilities and to evaluate the impact on rates due to increased operating costs and capital expenditures required for SB 1383 compliance. This proposal has been prepared based on our best understanding of the City's needs. However, we remain flexible and ready to discuss the proposed scope of work to ensure that our efforts are directed to bring the maximum value to the City. We hope to have the privilege of assisting the City of Palm Springs in addressing the complexities of SB 1383 compliance. We appreciate your consideration. Cordially, Enrique Vazquez Sloan Vazquez McAfee 3002 Dow Avenue • Suite 116 • Tustin, CA 92780 Office: 866.241.4533 • in/o@sloanvazquez.com
101.0 INTRODUCTION In September 2016, the Governor of California signed with the Short-Lived Climate Pollutant Act (SB 1383), establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants. Since organic waste disposal in landfills is a primary generator of methane emissions, jurisdictions throughout California are charged with reducing statewide organic waste disposal of 50% by 2020 and 75% by 2025. These reductions are expected to be accomplished through mandatory residential food waste recycling by 2022, 20% edible food recovery for the food insecure by 2025, and highly detailed reporting and enforcement requirements. SB 1383 places responsibility for compliance on municipalities with very specific milestones, deadlines, and corrective actions for non-compliance. However, compliance will require the participation of various entities including the residential community, the commercial sector, providers of organic material processing, the franchise hauler and other recycling facilities. QUALIFICATIONS SVM is a consulting firm focusing exclusively on municipal solid waste planning and management services, specializing in municipal solid waste procurement services, proposal and feasibility study preparation, waste composition and characterization studies, municipal contract analysis, residential and commercial collection operations, and management of MRF project development. The firm was founded by Joe Sloan in 2000 and was joined by Enrique Vazquez in 2005 and Charissa McAfee in 2013. Together, the firm's principals have over 70 years of wide-ranging expertise and experience in municipal waste management and recycling. With offices in Tustin, California, SVM maintains a specialized, streamlined organization that provides solid waste and recycling advisory services to both public and private sector solid waste and recycling enterprises. Our firm offers economic, regulatory and evaluation proficiency as well as keen industry insight developed through many years of direct, bottom-line management of municipal solid waste and recycling contracts. Our team members have held day-to-day responsibility for delivery of services, ongoing development and implementation of new services, rate negotiation for existing and/or new programs, development and preparation of operational data and service metrics. For fifteen years, we have been active providing municipal solid waste and recycling advice to California cities. As such, we have developed knowledge and expertise in recent State legislation, including SB 1383. More recently, we have completed the following projects. • For four years ending in 2018, for the City of Glendale, CA, we audited up to fifteen permitted haulers for compliance with various State laws including SB 1383. • We have been providing compliance auditing services to the City of Pasadena, CA for over 10 years to ensure that their franchise haulers in their non-exclusive franchise system are complying with diversion requirements. In the past two years, this has included compliance with the collection and processing of organic materials as required by SB 1383. S/oanVAZQUEZMCAFEE 21Page
11• Our firm also has completed two financial feasibility studies for organic material processing facilities to ensure compliance with SB 1383. The first was completed in 2018 for the City of Davis, CA and the second was completed in 2020 for the University of California Davis. • In early 2020, we completed a solid waste and recycling procurement process for the City of Mission Viejo. The primary goal of this process was to ensure compliance with SB 1383. The project included identifying SB 939 compliance components that could be provided by the franchise hauler and requesting rate proposals to cover the increased costs of those services. PROJECT STAFF Enrique Vazquez will serve as the project lead with support from Charissa McAfee, Joe Sloan, and Larry McQuaide. The SVM team has the skills and available capacity to effectively execute all proposed work in a timely and thorough manner. The following team members will be responsible for the successful implementation of this project: Enrique Vazquez -Principal Mr. Vazquez will serve as the Project Manager/Lead Analyst. Mr. Vazquez will have responsibility for the coordination of quality professional services to the City, overall performance of the project personnel, and timely completion of this engagement. Charissa McAfee -Principal As our SB 1383 expert, Charissa McAfee will ensure that all aspects of SB 1383 are addressed. Joe Sloan -Principal Joe Sloan will have responsibility for strategic analysis and review. He will contribute his expertise with emphasis in organic material processing assessment. Larry McQuaide -Senior Associate Larry McQuaide will serve as the Project Analyst and will assist Mr. Vazquez as necessary. 2.0 SCOPE OF SERVICES SVM proposes to perform the following services toward the completion of the project: Task 1: Franchise Agreement Update Assist PSDS and the City in reviewing and identifying changes needed for the Franchise Agreement to reflect SB 1383 requirements and an agreed-upon division of implementation responsibilities. SVM will review, analyze, and assess PSDS's proposed solutions to comply with the requirements of SB 1383. SVM will assist City staff in the review and assessment of the value to the City of PSDS's proposed solutions. Specific elements to be reviewed include, but are limited to the following: • Collection methodology for both residential and commercial. S/oanVAZQUEZMCAFEE .,,,_, •-••••• .H 3IPage
12Review proposed collection methodology: Residential fourth cart for organic collection; three-container "source separated", two-container, or one-container. • Vehicle analysis to review impact of added organic material collection routes to vehicle types and inventory. • Container requirement compliance. Container inventory analysis to include consideration for options such as phasing in the correct collection bin colors and labels for single-family carts and multi-family, and commercial collection bins. • Organic material processing capacity whether with arrangement with third party facilities or development of their own facility. • Ability to meet City's per capita requirement to procure compost, mulch, and/or renewable natural gas. • Contamination inspection methods. • Compliance with inspection and reporting requirements with respect to commercial edible food generators, food recovery organizations, and food recovery services. • Outreach and education requirements. 2.0 PROPOSED HOURS AND BUDGET SVM will perform the proposed services on a time and material basis at a reduced, flat hourly rate of $225 for a fee not to exceed $22,050 (Twenty-Two Thousand Fifty dollars). SVM projects that a total of Ninety-Eight (98) hours will be required to complete the project. The total billing will not exceed ninety-eight (98) hours without prior authorization by the City. Description Eslim~t~d HOllrS Task 1 ! Franchise Agreement Update 98 SVM 2020 RATE SHEET AND EXPENSE REIMBURSEMENT RATES Staff Member Hourly Rate Principal $265 Senior Associate $225 Associate $175 Admin $65 S/oanVAZQUEZMCAFEE ..,_ _,,.,_.,.,..,,..,,_N,.,i_,,.,-,..-_.,.,.,,. ,-,..,,_.,.,_.,,,...,, ~-••O• ••• H<>urly Rate Proposed Fees Actual Documented Cost 4jPage