19-0521_R3 CONSULTING GROUP, INC._Amd No. 1 to Professional Services AgreementAMENDMENT NO. 1
TO THE PROFESSIONAL SERVICES AGREEMENT
FOR SOLID WASTE FRANCHISE NEGOTIATION ASSISTANCE
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
R3 CONSULTING GROUP, INC.
1. Parties and Date.
This Amendment No. 1 to the Professional Services Agreement for Solid Waste Franchise
Negotiation Assistance is made and entered into as of this —,.PL day of May, 2019, by and
between the City of San Juan Capistrano, a municipal organization organized under the laws of the
State of California with its principal place of business at 32400 Paseo Adelanto, San Juan
Capistrano, California 92675 ("City") and R3 Consulting Group, Inc. a California Corporation with
its principal place of business at 1512 Eureka road, Suite 220, Roseville, California 95661,
("Consultant'). City and Consultant are sometimes individually referred to as "Party" and
collectively as "Parties."
2. Recitals.
2.1 Consultant. The City and Consultant have entered into an agreement entitled "Solid
Waste Franchise Negotiation Assistance" dated November 5, 2018, ("Agreement') for the purpose
of retaining the services of Consultant to provide Solid Waste Franchise Negotiation Assistance.
2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to
revise the scope of services and increase the not -to -exceed compensation amount.
2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Sections 3
and 24 of the Agreement.
3. Terms.
3.1 Amendment. Section I of the Agreement is hereby amended in its entirety to read as
follows:
1. Services.
Consultant shall provide the City with the services described in the Scope of Services
attached hereto as Exhibits A and A-1. Services specified under Exhibit A-1 will extend to
conducting a limited competitive Request for Proposal (RFP) process for solid waste hauler
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services, evaluating proposals received, and negotiating terms with the top ranked proposer
as well as other tasks as directed by the City.
3.2 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as
follows:
2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for services specified in Exhibits
A and A-1 in accordance with the Schedule of Charges set forth in Exhibits B and B-1,
respectively.
b. In no event shall the total amount paid for services rendered by Consultant under this
Agreement exceed the sum of One Hundred Four Thousand Three Hundred Eighty Five
Dollars ($104,385). This amount is to cover all printing and related costs, and the City will
not pay any additional fees for printing expenses. Periodic payments shall be made within 30
days of receipt of an invoice which includes a detailed description of the work performed.
Payments to Consultant for work performed will be made on a monthly billing basis.
3.3 Amendment. Exhibits A-1 and B-1 attached hereto are hereby added as Exhibits A-1
and B-1 to the Agreement.
3.4 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever
the term "Agreement" appears in the Agreement, it shall mean the Agreement as amended by this
Amendment No. 1.
3.5 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 1.
3.6 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
3.7 Counterparts. This Amendment No. 1 may be signed in counterparts, each of which
shall constitute an original.
[Signatures on Next Page]
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SIGNATURE PAGE FOR AMENDMENT NO.1 TO THE
SOLID WASTE FRANCHISE NEGOTIATION ASSISTANCE
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND R3 CONSULTING GROUP, INC.
CITY OF SAN JUAN CAPISTRANO
Approved By:
inA!
/b'w` t;ity Manager el
5-23-1
Date
Attrd_B
w 1��r
Mak@ Morris, UY Clerk
Approved As To Form:
City Attorney
R3 CONSULTING GROUP, INC.
//
Signature
Eichavz) ICt�10re-L�rtJin
Name
r:P'Inc IQo,I -Res
Title
5,►5- 101
Date
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EXHIBIT A-1
Scope of Services
COMPETITIVE RFP PROCESS
R3 Consulting Group, Inc. has completed all of Task 1, Task 2.1, and began working with
City staff on Task 2.2; sole negotiations with the City's franchise solid waste hauler CR&R,
Incorporated per the terms of the original Agreement. The work to date has provided basic
contract terms and customer rates to consider in negotiations with CR&R for a revised
franchise agreement. Consultant is recommending a competitive procurement process
after reviews with City staff, other surrounding agencies, and inquiries from other solid
waste haulers.
A revised scope of work would involve new tasks to conduct a limited competitive
procurement process. The RFP process is to be completed by July 31, 2019, and
negotiations with selected vendor completed by August 30, 2019.
3. Preparing and issuing a limited Request for Proposals for solid waste franchise
services. Compile the RFP package, including drafting the program requirements,
the pricing options for different collection approaches, green waste, organics, and
recyclables collection, etc. Develop a mailing list of potential proposers and
minimum qualifications. Respond with written responses to questions submitted
regarding the RFP, and addenda as necessary.
4. Evaluating proposals received, conducting interviews and clarifications with the top-
ranked proposers, and providing recommendations.
6. Negotiating the specific terms and conditions of the new (or revised) franchise
agreement with the top ranked proposer(s).
The remaining Tasks 2.3, 2.4, and 2.5 in the original Scope of Work, Exhibit A would follow
the RFP bid award to the selected proposer. Those tasks are renumbered in Table 1 as
Task 5 and 7.
2.3 (5) Prepare revised or new agreement.
2.4 (7) Present revised or new agreement to the City Council.
2.5 (7) Finalize revised or new agreement for City Council Approval.
Task 3: Prepare RFP Package
1. Consultant will take the findings and discussion with City staff in Task 1 to develop
an RFP package which this includes a finalized RFP, a draft Agreement, and cost
forms for proposers to complete. The RFP will specify minimum requirements and
qualifications and will require proposers to submit work plans that specify how they
will transition to new services, achieve diversion requirements, implement customer
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service programs, and promote public education activities. Separate sections of the
RFP may include the following:
❑ Section 1: General Introduction to the RFP Document
❑ Section 2: Available Demographic and Service Account Data
❑ Section 3: Current Services and Requested Service Requirements
❑ Section 4: Communication Protocol for Contractors and the City, Qualification
Requirements and the Required Submittal Format
❑ Section 5: Required Work Plans
❑ Section 6: Evaluation Criteria and Evaluation Process
❑ Section 7: Proposal Cost and Service Forms
❑ Section 8: Draft Agreement
Consultant will finalize the RFP package based on City direction and send to limited list of
eligible solid waste haulers.
Task 4: Evaluate Proposals Received
Consultant will assist the City with the evaluation of proposals received in response to the
RFP. The evaluation will include, but not be limited to, conducting an initial "pass -fail"
checklist against RFP minimum requirements, and evaluating the proposers' qualifications,
references, processing and disposal facilities, approach to meeting the City's diversion
requirements, customer rates (prices), collection methods, customer service programs,
financial statements, transition experience and work plans. After the initial evaluation is
completed, Consultant will prepare any written requests for clarification to the haulers, as
necessary. In the event a proposal does not meet the minimum requirements of the RFP,
Consultant may recommend that the proposal be disqualified as non-compliant with the
RFP requirements. The Consultant's role in the evaluation process will also include
facilitating the evaluation meetings, and the proposer interviews, along with several
meetings with City staff and presentations to the City Manager or City Council to present
(1) a summary of the proposals received, and (2) the results of the evaluation process.
Task 6: Negotiate with Top Ranked Proposers)
Based on direction from City staff and/or City Council, the Consultant will participate in
Agreement negotiations with the top ranked proposer(s). Negotiations will focus on
clarifying the proposer's service and cost proposal, and incorporating any optional services
as may be selected by the City. This subtask will include meetings with the City beforehand
to confirm the approach for the negotiation.
Deliverables Tasks 3.4.6:
One (1) finalized RFP package, in electronic format, that includes a background of
the service area, requested services, RFP preparation instructions, evaluation and
selection criteria, project schedule, draft Agreement, and all required cost and
supporting forms to be filled out by the proposers (for distribution to potential
proposers);
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• A mailing list of prospective proposers, for use in City's distribution of the RFP
package;
• Preparation of a notice of availability of the RFP document and how proposers may
• obtain copies;
• Preparation of all necessary addenda to the RFP;
• Evaluation of the technical feasibility of each proposal received;
• Evaluation matrix to easily compare the proposed programs and rates for
each proposer;
• Preparation of any written request for clarification to the proposers, as necessary;
• Scheduling and conducting interviews with the top ranked proposers;
• Preparation of staff reports that summarize the proposals received;
• One (1) Draft Agreement in electronic format;
• Up to three (3) negotiation sessions with top ranked proposers;
• Preparation of a listing of outstanding service, cost, and Agreement issues to
be negotiated with the proposers;
• Revisions to the Agreement based on the results of the negotiation sessions;
• Preparation of a draft staff report to the City Council to support the staff
recommendation to execute an Agreement with the selected company;
• Up to three (3) presentations to City Council as follows (or as otherwise directed by
• City staff):
o One (1) presentation of the draft RFP documents to City Council;
o One (1) presentation of the results of the evaluation process to the City
Council; and
o One (1) presentation summarizing the results of the final negotiations and the
final Agreement to the City Council for approval.
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EXHIBIT B-1
Schedule of Charges/Payments
Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed
progress report that indicates the amount of budget spent on each task. Consultant will inform City
regarding any out -of -scope work being performed by Consultant. This is a time -and -materials
contract.
Consultant will complete the Scope of Work for a total, not -to -exceed amount of $104,385.00 (Table
1) based on the billing rates as listed in Table 2. Project cost includes labor, travel, and project
expenses, and includes the work and deliverables as listed in Tasks 1 through 7. Movement of
hours and costs between Tasks may be revised and shifted upon consultation with the City,
provided the total project cost does not exceed $104,385.00.
Table 1
Project Budget
Budget Augmentation Request
Budget5pent
Remaining
Task
Budget
Through
Budget
May 13, 2019
1. Comprehensive Analysis of City's Solid Waste
Program and Preliminary Recommendations for
$10,670
$10,670
-0-
Agreement Updates.
2. Sole Source Negotiations with CR&R.
$58,820
$28,085
$30,735
Total Original Tasks
$69,490
$38,755
$30,735
3. Preparing and issuing a limited Request for
$5,950
Proposals for franchised services.
4. Evaluating proposals received, conducting
interviews/clarifications with the top ranked
$18,120
proposers, and providing recommendations.
N/A
S. Developing a new (or revised) franchise agreement.
$12,160
6. Negotiating the specific terms and conditions of the
new (or revised) franchise agreement with the top
$21,320
ranked proposer(s).
7. Finalizing and presenting the franchise agreement
$8,080
for City Council approval.
Total New Tasks
1 $65,630
$30,735
Net Augmentation Requested (augmentation minus remaining budget)
$34,895
Total New Budget (original plus net augmentation)
$104,385
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Table 2
Billing Rates
Category
lluurl) Rate
R3 Consulting Group, Inc.
Principal / Project Director
$205 per hour
Senior Project Manager
$185 per hour
Project Manager
$160 per hour
Senior Project Analyst
$145 per hour
Project Analyst
$135 per hour
Associate Adalyst
$120 per hour
Administrative Sppport
$100 per hour
Integrated Waste Management Consulting
Principal
$185 per hour
Reimbursable Costs
Consultants/Subcontractors Cost plus 10% (included in project budget)
Lodging and meals No Charge
Travel — Private or company car No Charge
Travel — Other No Charge
Delivery and other expenses No Charge
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