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HomeMy WebLinkAboutStaff Report 311-08TO: FROM: DATE: SUBJECT: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTNIENT: PUBLIC WORKS JULY 21, 2008 C1VIR:311:08 APPROVAL OF AMENDMENT NO. ONE TO REFUSE ENTERPRISE FUND CONTRACT NO. C07119835 WITH HF&H CONSULTANTS IN THE ADDITIONAL AMOUNT OF $20,323 FOR SERVICES RELATING TO THE BEST AND FINAL OFFER PROCESS FOR THE NEW SOLI[D WASTE, RECYLING, AND ORGANICS SERVICES AGREEMENT 13 RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his desiguee to execute Amendment No. One to Contract No. C07119835 with Hilton Farnkopf & Hobson (HF&H) Consultants (Attachment A) to increase the compensation an additional amount not to exceed $20,323 to provide services relating to the Best And Final Offer process for the new solid waste, recycling, and organic services agreement. The total compensation shall not exceed $225,487 with these proposed additional services. BACKGROUND In March 2007, Council approved Contract No. C07i19835 with HF&H Consultants (HF&H) (CMR: 154:07) to assist the City in the solicitation process for a new solid waste and recyclable services agreement. Staff has been working with HF&H in researching and developing recommendations for the Request for Proposals (RFP), creating the RFP documents for release, and analyzing the proposals and costs received. In July 2007, Council adopted a Code of Conduct relating to the procurement process for the waste hauling contract. Resolution 8734 discourages councilmembers from conducting non- public meetings or conversations with potential proposers and requires that any such non-public meetings be disclosed within 30 days of the meeting. In accordance with this adopted Council policy and in accordance with purchasing best practices, a series of public meetings have been conducted to gather Council and community input on this significant procurement. At the June 23, 2008 Council meeting, Council gave direction on the level of services to be included in the newsolid waste, recycling, and organic services agreement. On August 4, 2008, staff will return to Council to report on the evaluation and ranking of the two proposals and to request a recommendation on the company with whom staff should negotiate a final agreement. CMR:311:08 Page 1 of 2 Staff then plans to return in September 2008, with a recommendation for approval and execution of the final agreement. New services are scheduled to begin July 1, 2009. DISCUSSION In order to lower costs and reduce the rate impact to customers~ the Steering and Advisory Committee working on the new .agreement decided to request a Best and Final Offer (BAFO) from the two proposers. The BAFO request provides the proposers with an opportunity to further refine their proposals and costs. It also provides an additional opportunity to maximize the competitive process between the proposers, thereby creating potential additional savings to the City. .~ .-.,~: The BAFO request is an extra step in the solicitation process that was not previously anticipated and results in the postponement of taking to Council the ranking of proposers and recommendation from July to August 2008. The BAFO process also affects the contract with HF&H because it is an additional step that was not in the original scope of work and therefore requires Council authorization for amending the contract. Amendment No. One (Attachment A), to contract CO7119835 provides for additional analysis and support needed from HF&H to review the BAFO from proposers and to analyze the BAFO impact on proposed costs for services. RESOURCE IMPACT Funds for this contract amendment are available in the Refuse Fund Budget. ENVIRONMENTAL REVIEW This is not a project under Section 21065 of the California Environmental Quality Act (CEQA). The City is preparing an environmental assessment in connection with award of the waste hauling contract. ATTACHMENTS Attachment A: Amendment No. One to Contract No. C07119835 PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: GLENN S. ROBERTS Director of Public Works KELLY Deputy City Managers CMR:311:08 Page 2 of 2 ATTACHMENT A CITY OF PALO ALTO CONTP~ACT NO. C07119835 AMENDMENT NO. i TO CONTRACT NO. C07119835 BETWEEN THE CITY OF PALO ALTO AND HF&H CONSULTANTS, LLC This Amendment No. 1 to contract No. C07119835 (’~Contract") is entered into 2008, by and between the CITY OF PALO ALTO, a California Charter City ("CITY"), HF&H Consultants, LLC, a Limited Liability Company located at 2175 North California Blvd., Suite 990, Walnut Creek, CA 94596 ("CONSULTANT"). WHEREAS, the Contract was entered into between the parties for the provision of professional consulting services relating to the design services for the new solid waste and recyclable material collection and processing agreement (~Project"); and WHEREAS, the parties wish to amend the Contract to increase the scope of services and compensation; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION i. Section i, SCOPE OF SERVICES, is hereby amended to add the follbwing: ~The scope of services and deliverables cQnstituting the Project ("Basic Services") will be performed, delivered or executed by CONSULTANT in accordance with the schedule and the requirements of Exhibit ~A" and Exhibit ~A-I" for additional scope of services." SECTION 2. Section 4, NOT TO EXCEED COMPENSATION, is hereby amended to read as follows: ~The compensation to be paid to CONSULTANT for performance of the Services described in Exhibits ~A" and ~A-I, including both payment for professional services and reimbursable expenses, shall not exceed one hundred ninety-eight thousand seven hundred twenty-seven dollars (.$198,727.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed two hundred twenty-five thousand four hundred eighty-seven dollars ($225,487.00). The applicable rates and schedule of payment are set out in Exhibit "C", entitled "COMPENSATION," which is attached to and made a part of this Agreement. S : ATT~USERS/~DEF/CF-~-EOR~Cit~pprQ~ed_ Co~zac r~s .__ 1 3/20/07 (REV) C!TY OF PALO ALTO CONTP~ACT NO. C07119835 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibits "A" and "A-I" SECTION 3. The following exhibit(s) to the Contract are hereby set forth as attachment(s) to this Amendment, which are incorporated in full by this reference: EXHIBIT "A-I": ADDITIONAL SCOPE OF SERVICES S :ATT/USERS/OFFICE FORMS/City Approved Contracts 3/20/07 (REV) CITY OF PALO ALTO CONTRACT NO. C07119835 SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. APPROVED AS TO FORM:CITY OF PALO ALTO Senior Asst. City Attorney City Manager APPROVED: Director of Administrative Services By : Name: RoSert D. Hilton Title: President By: Name: Title: Taxpayer Identification No. 94-3097242 (Co, mpliance with Corp. Code ~ 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable). 3/20/07 (REV) CITY OF PALO ALTO CONTRACT NO. C07119835 EXHIBIT A-I Additional Scope of Services Add to Phase 4 - Develop and analyze Best and Final Offers AddTask 14.4 - Best and Final Offer Process The HF&H Team will draft the best and final offer request letters for each proposer that will be reviewed and commented on by the City. HF&H will then finalize the letters and submit to the City for distribution. HF&H will, if requested by the City, communicate with each proposer to ensure that they are aware of the process, needs and schedule. After revised offers are received by the proposers, HF&H will analyze the responses, focusing on the impact of the revised costs on the prior HF&H cost and rate analysis and on any qualitative differences in how services will be provided based on the best and final offers. The results shall be presented to both the Evaluation Team and Steering and Advisory Committee. Time allowing, HF&H shall present this analysis to City staff for review and comments, and revise as necessary prior to presentation to the two committees. Otherwise, HF&H staff will make one round of necessary and final revisions of their analysis based on combined staff and Committee comments. Consultant shall attend a maximum of three (3) meetings. Deliverables: Draft and finalize best and final letters to proposers for City review and comments Analysis of responses received by proposers Update prior cost and rate analysis Task 20 shall be amended to read - Consultant shall attend a minimum of 21 meetings.