TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ramzi Awwad, Public Works Director
Jeff Page, Utilities Manager
Anna Luke-Jones, Solid Waste Administrator
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the HF&H Consultants, LLC On-Call Solid Waste Assistance Agreement, at a Cost Not-to-Exceed $394,900 Over Five Years (Budgeted) (Public Works Director Awwad)
ADOPT RESOLUTION NO. 26-0089
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 26-0089, approving Amendment No. 2 to the HF&H Consultants, LLC (HF&H) on-call solid waste assistance agreement (Agreement), extending the term through June 30, 2029, and increasing the not-to-exceed amount from $94,900 for the first two-year period to $394,900 over the total five-year term of the agreement.
FISCAL IMPLICATIONS:
The Fiscal Year 2026-2027 Adopted Budget for Public Works Administration includes $100,000 to fully fund the Agreement for Fiscal Year 2026-27. Future years will be budgeted accordingly.
BACKGROUND:
On June 4, 2024, the City entered into a three-year agreement with HF&H for on-call/as-needed consulting services related to the City’s solid waste franchise hauler, in an amount not-to-exceed $74,900. More specifically, the services included advising on the franchise agreement with Waste Management (WM), WM’s one-time special rate increase request, and other related solid waste industry items. On August 19, 2025, City Council adopted Resolution No. 25-0098, approving Amendment No. 1 to the Agreement, which added $20,000 and set $94,900 as the maximum compensation. This increase was for a City Council-directed analysis of WM’s request to make certain modifications to the hauling agreement.
DISCUSSION:
There is a need for continued and expanded on-call specialized consultant expertise in the solid waste industry for activities including review of WM’s annual rate adjustment request, evaluation of select contract compliance items, guidance on navigating CalRecycle SB1383 regulatory compliance audits, and potential rate negotiation requests from WM regarding the Agreement. However, the Agreement amount of $94,900 covering the first two years has been nearly expended, and an amendment is needed to continue these services into Fiscal Year 2026-27 and beyond.
Staff recommends that the City Council adopt Resolution No. 26-0089 approving Amendment No. 2 to the Agreement with HF&H, extending the term through June 30, 2029, and increasing the not-to-exceed amount from $94,900 for the first two-year period to $394,900 over the total five-year term of the agreement.
Amendment No. 2 increases the annual not-to-exceed amount to reflect the increased scope of services reflective of increased WM rate adjustment requests and contract compliance evaluations as well as new regulatory compliance audits associated with SB 1383. Amendment No. 2 also extends the Agreement by two years to reduce administrative time spent on a future amendment as the agreement nears expiration.
Additionally, although the original Agreement includes a four percent rate increase in 2027 to adjust for inflation, staff negotiated a reduced three percent annual inflation increase for 2028 and 2029.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the amendment as to form.
ATTACHMENTS:
1. Resolution No. 26-0089
2. Amendment No. 2 - HF&H Consultants, LLC
3. Amendment No. 1 - HF&H Consultants, LLC
4. Agreement - HF&H Consultants, LLC