Item Coversheet

Agenda Item - 2.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:William E. Murray
Dept.:General Manager 

Dept.: Public Works 
Subject:

Approval of a professional service agreement with HF&H Consultants, LLC, to provide solid waste contract negotiations. (Cost:  $75,000) (Action Item

Date:3/23/2021

OBJECTIVE

To recommend the Garden Grove Sanitary District approve an agreement with HF&H Consultants, LLC. (HF&H) for leading solid waste contract negotiations for implementation of new organic recycling regulations to meet compliance. 

BACKGROUND

In September 2016, Governor Brown signed into law Senate Bill (SB) 1383 (Lara, Chapter 395, Statutes of 2016, Short-Lived Climate Pollutants: Methane Emissions Reductions), the most significant waste reduction mandate to be adopted in California in the last 30 years. SB 1383 establishes a mandated target to achieve a 50 percent reduction in statewide disposal of organic waste from 2014 levels by 2020 and a 75 percent reduction by 2025.  The regulations outline specific requirements related to organics collection, edible food recovery, and compliance tracking and monitoring; mandating significant action by local jurisdictions, residential and commercial organics regulators, haulers, and facilities to significantly reduce organics landfill disposal. 

DISCUSSION

Republic Services, formerly operating as Garden Grove Disposal, has been the Garden Grove Sanitary District’s (District) exclusive franchise solid waste collection and disposal provider since 1989.  In December 2019, this franchise service agreement was amended with a new green waste processing fee to address Assembly Bill (AB) 1594 (Chapter 719, Statutes of 2014) mandates on the use of green material (Alternative Daily Cover) no longer being considered diversion and instead being considered disposal in terms of measuring a jurisdiction’s annual fifty percent CalRecycle diversion requirement. 

 

In response to SB 1383, the City hired HF&H last July to conduct a contract profiling gap analysis to identify existing contract terms and draft new terms for complying with new regulations.  The next step is to proceed with negotiations with Republic Services to set new terms and clearly establish roles between the City’s and Hauler’s responsibilities to ensure compliance. Other Republic Services’ contracted cities such as Anaheim, Fullerton, Brea, Yorba Linda and Placentia are contracting with HF&H to lead their contract negotiations. Due to this collaborative effort, HF&H has provided a discount to the cities for this service in the amount of $75,000. HF&H has an extensive background in solid waste services and provides ongoing legislative compliance services. Therefore, staff recommends hiring HF&H  contract negotiation services for addressing SB 1383 program requirements.

 
FINANCIAL IMPACT

There is no   impact to the General Fund, funding is budgeted through Refuse  Operations.

RECOMMENDATION

It is recommended that the Sanitary District Board:

 

  • Approve the professional service agreement with HF&H Consultants, LLC., in the amount of $75,000, for leading solid waste contract negotiations for the new, recycling mandates under SB 1383 to meet compliance; and

 

  • Authorize the General Manager to execute the agreement on behalf of the Sanitary District Board and make minor modifications as appropriate thereto.

 

 

By:  A.J. Holmon III, Streets/Environmental Manager




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
HF&H Proposal3/16/2021Backup Material3-23-21_HF_H_Proposal.pdf
Agreement3/16/2021Agreement3-23-21_HFH_Consultants_Agreement_sb_1383_contract_neg_2021_Rev_Final.pdf