CC 05-07-2024 Item No. 8. HFH Master Agreement_Supplemental Report
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: May 7, 2024
Agenda Item #8
Subject
Approve a first amendment with HF&H Consultants, LLC, to provide solid waste
consultant services for a not-to-exceed amount of $430,000 and extend the contract
date to August 31, 2026.
Recommended Action
1. Authorize the City Manager to execute a first amendment with HF&H
Consultants, LLC, increasing the contract amount by $80,000 for a new total not-
to-exceed contract amount of $430,000, and extending the term from August 31,
2025, to August 31, 2026.
2. Approve a Budget Adjustment in the amount of $80,000 in the Resource
Recovery Fund for HF&H Consultants, LLC (520-81-801 750-174).
3. Adopt Resolution No. 24-xxxx approving budget modification #2324-339,
approving a Budget Adjustment in the amount of $80,000 in the Resource
Recovery Fund for HF&H Consultants, LLC (520-81-801 750-174).
Background:
Q1: Why is there an increase in hourly in two years from the amount in the original
contract? How much of the $80,000 increase is due to the increased hourly fee?
From the May 2022 contract:
New rate:
(Chao)
Staff response: Consultant rates have increased in all sectors due to adjustments in
consumer price indices (CPI). The previous hourly rates were from 2022, and the new
rate adjustments have been implemented to partially address CPI changes in costs.
Bay Area CPI has increased by approximately 7.7% since 2022. The adjusted hourly
rates are being increased by approximately 3.5%, which is modest compared to overall
increases in costs. The adjusted hour rates would result in approximately 3.5% of the
amended contract increase.
Q2: Why is there a need to change this paragraph of the contract? I did not see a
redlined contract for comparison. What's changed?
(Chao)
Staff response: The modification of this paragraph provides an extension to the term of
the agreement until August 31, 2026, to enable the City to complete the project scope.
The original agreement is set to expire on August 31, 2025.
Q3: The resident has questioned about whether the Recology fees should be
considered tax: "The franchise fee that we are charging to Recology are looking like a
tax and we need to ensure that there is a nexus". Has any response been provided to
them? Please forward them to me. (Chao)
Staff response: This question is outside of the scope of the agendized item.
Q4: The resident has questioned whether the Recology fee for Cupertino is much
higher than other cities: "Our effective rate without the $2.01 per month subsidy is
$44.20, making Cupertino higher than Campbell, Gilroy, Morgan Hill, and Mountain
View. The table below provides more data than the staff report. Recology serves
Gilroy and Morgan Hill which cost less "Has any response been provided to them?
Please forward them to me. (Chao)
Staff response: This question is outside of the scope of the agendized item.
Attachments Provided with Original Staff Report:
A. First Amendment to HF&H Master Agreement
B. HF&H MSA for Solid Waste Consulting Services
C. Draft Resolution