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Waste Infrastructure System Enterprise Agreement with the County of Orange <br />April 21, 2026 <br />Page 6 <br />5 <br />7 <br />0 <br />0 <br />Staff recommends awarding a professional services agreement to HF&H Consultants to <br />conduct the necessary financial analysis and manage the Proposition 218 rate <br />adjustment process (Exhibit 2). HF&H is a recognized leader in solid waste, recycling, <br />and organics consulting, specifically known for their expertise in complex municipal rate <br />modeling and regulatory compliance. The firm has an established contractual <br />relationship with the City over eight years, providing a deep understanding of Santa <br />Ana’s unique solid waste rate structures, historical tonnage data, and operational <br />requirements. Most importantly, HF&H was a primary technical participant in the <br />regional negotiations between the OCCMA and the County. Their deep involvement in <br />crafting the WISE Agreement’s phased rate structure and transparency provisions <br />makes them uniquely qualified to translate these regional changes into local rate <br />protections. Lastly, HF&H has a deep understanding of the City’s Hauler Agreement <br />with Republic Services as they were the main consultant in developing the contractual <br />requirements, including the existing rate structure. <br />Santa Ana Ordinance No. NS-3041 authorizes the City to utilize competitively procured <br />contracts from other public agencies. The City of Palm Desert’s Contract No. C48690 <br />with HF&H Consultants was awarded through an open and competitive bidding process <br />and meets the City’s procurement requirements. <br />Recommendations <br />Staff recommends approval of the WISE Agreement and the professional services <br />agreement with HF&H Consultants. Staff further recommends a rate stabilization <br />strategy for FY 26/27 and negotiating an MOU with Republic Services to that effect. <br />Together, these actions provide a coordinated approach to maintaining reliable solid <br />waste disposal services while responsibly managing both the near-term and long-term <br />financial impacts associated with the County’s new landfill disposal rate structure. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Funds are budgeted and available for the HF&H Consultant agreement in the following <br />account for FY 2025-26. Any remaining balances not expended by the end of the fiscal <br />year will be presented to City Council for approval of carryforwards into FY 2026-27. <br />There is no immediate fiscal impact associated with the approval of the WISE <br />Agreement. The estimated $6.8 million of spendable fund balance required to stabilize <br />refuse rates for Santa Ana customers over the 12-month period in FY 2026-27 will be <br />presented to City Council for consideration as a part of the FY 2026-27 budget. This is <br />intended as a one-time use of fund balance to mitigate near-term rate impacts, with staff <br />anticipated to return to City Council at a later date to evaluate future rate adjustments. <br />The Refuse Collection Service fund is projected to end the fiscal year with