Agenda Item AGENDA STAFF REPORT ASR Control 24-000337
MEETING DATE:	05/07/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	OC Waste & Recycling (Approved)
Department contact person(s):	Tom Koutroulis (714) 834-4122
	Lisa Smith (714) 834-4357

Subject: Renewal of Contract with HF&H Consultants, LLC for Financial Advisory Services

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $60,000

Annual Cost: FY 2024-25 $240,000

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Fund 299: 100%	County Audit in last 3 years: No
Levine Act Review Completed: N/A

Prior Board Action: 3/28/2023 #31, 5/5/2020 #42

RECOMMENDED ACTION(S):

Authorize the County Procurement Officer or Deputized designee to execute Amendment Number Four to renew the contract for one year with HF&H Consultants, LLC, for financial advisory services, effective upon Board of Supervisors approval and execution of all necessary signatures, through May 4, 2025, in the amount of $300,000, for a revised cumulative contract total amount not to exceed $1,600,000.

Authorize the County Procurement Officer or Deputized designee to make ministerial or non-material changes to the contract.

SUMMARY:

Approval of Amendment Number Four to contract with HF&H Consultants, LLC, will allow for continuous financial services for OC Waste & Recycling, ensuring continued support to waste management services, sustaining current and long-term disposal system operations and assist in securing a guaranteed flow of tonnage revenue from the Orange County landfills through 2025.

BACKGROUND INFORMATION:

OC Waste & Recycling (OCWR) is responsible for managing the County of Orange (County) solid waste disposal system. The system consists of three active regional landfill operations, 20 closed solid waste disposal sites, and four household hazardous waste collection centers.

On November 26, 2019, OCWR issued a Request for Proposal (RFP) for financial advisory services. The RFP was advertised on the County’s online bidding system. One proposal was received and was deemed responsive to the requirements of the RFP. The proposal was evaluated by a five-member qualified evaluation panel with subject matter expertise. Three members were from OCWR and two members were from the Auditor-Controller office. Based upon the criteria and evaluation procedures, the proposer was invited to be interviewed. The evaluation panel recommended the award of the financial advisory contract to HF&H Consultants, LLC, and the Board approved the contract on May 5, 2020.

Amendment Number One, executed on March 2, 2021, to make ministerial or non-material changes, amended Attachment B, Payment Terms, Compensation and Invoicing Instructions with no monetary increase to the contract.

Amendment Number Two, executed on April 5, 2023, to renew contract MA-299-20011360 with HF&H Consultants, LLC, for the fourth year in an amount not to exceed $300,000 for continuing financial advisory services was approved by the Board on March 28, 2023.

Amendment Number Three, executed on March 6, 2024, to make ministerial or non-material changes, amended Attachment B, Payment Terms, Compensation and Invoicing Instructions with no monetary increase to the contract.

Approval of Amendment Number Four to renew contract MA-299-20011360 with HF&H Consultants, LLC, for the fifth and final year in an amount not to exceed $300,000 will provide the critical and continuing financial advisory support to OCWR’s effort for a successful negotiation of the new Waste Infrastructure System Enhancement (WISE) agreements with Orange County cities effective July 1, 2025. Prior to Contract expiration, if continued financial advisory services are required, OCWR will conduct a request for proposals to solicit for the services.

The contractor’s performance had been determined to be at least satisfactory. OCWR has verified there are no concerns that must be addressed with respect to the contractor’s ownership/name, litigation status or conflicts with County interests. The Orange County Preference Policy is not applicable to this contract amendment.

Due to additional time OCWR needed to complete Amendment Number Three and final reviews for Amendment Number Four, this request for approval of the contract is presented to the Board less than 30 days prior to its proposed effective date, May 7, 2024.

This contract does not currently include subcontractors or pass-through to other providers. See Attachment C for Contract Summary Form.

Compliance with CEQA: This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA since it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project since the action authorized herein is for the approval of a contract only that will not result in any impacts to the environment. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed for compliance with CEQA.

FINANCIAL IMPACT:

Appropriations for this contract is included in FY 2023-24 Budget for OCWR Enterprise Fund 299 and will be included in the budgeting process for future years. This Contract includes a provision stating the contract is subject to, and contingent upon, applicable budgetary appropriations being approved by the Board for each fiscal year during the term of this contract. If appropriations are not approved, this contract may be immediately terminated without penalty to the County.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Redline Contract MA-299-20011360 HF&H Consultants, LLC
Attachment B - Amendment Number Four MA-299-20011360 HF&H Consultants, LLC
Attachment C - Contract Summary Form