REPORT TO THE CITY COUNCIL April 6, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: JERRY L. SCHUBER SR., Assistant Director Department of Public Utilities - Solid Waste Management Division SUBJECT ..Title Award a Consultant Services Agreement in an amount not to exceed $80,630 to HF&H Consultants, LLC pertaining to a Commercial Franchise Contractors Performance Review as outlined in the Request for Proposals issued by the City (Bid File 9393) (Citywide) ..Body RECOMMENDATION Staff recommends that Council authorize the Director of the Department of Public Utilities or designee(s) to execute an agreement with HF&H Consultants, LLC for a Commercial Franchise Contractor Performance Review as outlined in the Request for Proposals (RFP) issued by the City (Bid File 9393). EXECUTIVE SUMMARY In November 2016, the City distributed RFP Bid File 9393, seeking consultant proposals to conduct a Commercial Franchise Contractor Performance Review of the City's two commercial franchise performance, as agreed upon in the franchise agreements between the City of Fresno and Allied Waste Services, LLC and the City of Fresno and Mid Valley Disposal, LLC. Four proposals were received for Bid File 9393. An interview of the proposers was held on February 13, 2017 to discuss the goals of the project. BACKGROUND The Department of Public Utilities' (DPU) Solid Waste Management Division is responsible for collecting municipal solid waste, recyclables, and green waste from nearly 110,000 residential customers producing approximately 4,300 tons of material each week. In December of 2011 commercial waste collection franchises were awarded to Allied Waste and Mid Valley Disposal. As a condition of the agreements, both franchises agreed to undergo a comprehensive performance review conducted by a third party consultant after year five of their ten-year contracts. DPU issued an RFP seeking proposals for performance review of the commercial franchisees. The selected proposer shall perform a Fee Audit, Rate Increase Review. Customer Satisfaction Survey, Complaint Review, Employee Review, and Diversion Program Review as set forth in the RFP. Request For Proposal Process In November 2016, the City distributed RFP Bid File 9393, seeking proposals for the Commercial Franchise Contractor Performance Review. Proposals were due January 17, 2017. A proposal review committee comprised of Solid Waste Management Division Staff, with the assistance of a committee, reviewed the proposals. Committee members included: * Michael Lima, Finance Director/Controller, City of Fresno, Finance Department * Michael Greenberg, Senior Staff Analyst, Fresno County Public Works and Planning * Jerry Schuber, Assistant Director, City of Fresno, Department of Public Utilities-Solid Waste Management Division * Brian Spindor, PE, Assistant Director, City of Fresno, Department of Public Utilities-Water/Wastewater Divisions * Eric Zetz, MBA, Section Manager, City of Clovis, Department of Public Utilities-Solid Waste Division The City received four proposals. Interviews were scheduled to discuss proposals with the respondents on February 13, 2017. Committee Review and Recommendation Based on the proposals the evaluation committee found that HF&H offered a comprehensive proposal showing a great depth of knowledge in performing the proposed work. HF&H also illustrated its experience with both the solid waste industry and the consulting industry, thus giving them a broad perspective to examine the franchisees' operations. HF&H also advised the City in developing the Commercial Franchise Contractor agreement between the City, Allied Waste, LLC, and Mid Valley Disposal, LLC, giving it a greater familiarity with the requirements of the agreements. The evaluation committee agreed that HF&H's proposal presents the best value to the City for completing the Commercial Franchise Contractor Performance Review. The Committee recommends that Council authorize the Director of the Department of Public Utilities or designee(s) to execute a Consultant Services Agreement for the Commercial Franchise Contractor Performance Review in an amount not to exceed $80,630 developed with the assistance of and approval as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS This is not a "project" for the purposes of CEQA pursuant to CEQA Guidelines � 15378. LOCAL PREFERENCE Local Preference was not applied because no local entities submitted proposals. FISCAL IMPACT This project has no financial impact to the General Fund, and the franchisees will reimburse the Solid Waste Management Division for the value of the agreement pursuant to their agreement with the City. Attachments: Agreement (Attachment 1) HF&H Consultants, LLC Proposal (Attachment 2)