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THE CITY OF 1 5 " lairs- CITY COUNCIL AGENDA REPORT PLEASANTON. December 19, 2017 City Manager TITLE: AUTHORIZE STAFF AND COUNCIL SUBCOMMITTEE ON REFUSE AND RECYCLING TO FINALIZE A TENTATIVE FRANCHISE AGREEMENT WITH PLEASANTON GARBAGE SERVICE FOR RECYCLING AND REFUSE SERVICES AND APPROVE A SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH HF&H CONSULTANTS, LLC SUMMARY The City's exclusive refuse collection and recycling franchise agreement (Franchise) with Pleasanton Garbage Service (PGS) to provide all residential and commercial solid waste services, including the collection of refuse, recyclable material, green waste, food scraps, and construction and demolition material from residences and commercial accounts will expire on June 30, 2019. At the request of the City, on June 23, 2017, PGS submitted a proposal to the City for consideration of a new Franchise. Since that time, staff has been reviewing the proposal and negotiating with PGS regarding the terms and costs of a new City Franchise (hereinafter referred to as "Agreement"). The outcome of these negotiations is that we have a tentative agreement with PGS that meets staff and Council goals as outlined later in this report. During these discussions, staff has involved the City Council Refuse and Recycling Subcommittee (Subcommittee) comprised of Councilmembers Brown and Pentin for overall direction and specialized consultant services from HF&H Consultants, LLC and Management Partners for their expertise on this subject. While we have a tentative agreement, additional work is required to complete the process prior to the City Council considering approval of all related documents. Most notable is the need to conduct a public bidding process to contract with an entity (or entities) to process all organic and recyclable material collected in Pleasanton by PGS, develop a new service rate schedule that incorporates agreed upon cost reductions, and begin the implementation of proposed new services such as bulky item and used motor oil collection and the installation of a new management information system. Staff proposes to bring the Agreement back to City Council for approval in January 2018. Staff will work with HF&H to complete the bidding process for processing organic and recycling materials. Staff will also work with the Subcommittee on a rate schedule and anticipates coming back to the City Council in late spring of 2018 with a final recommendation for approval of all Franchise related documents. RECOMMENDATION 1. Approve an amendment with HF&H Consultants, LLC in the amount of$149,600 to complete these negotiations, conduct the public bidding process, and assist completing the franchising process. 2. Authorize staff to finalize new Agreement language.