Loading...
HomeMy WebLinkAboutCC Resolution 13493 (HF&H Refuse Rate Review)RESOLUTION NO. 13493 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH HF&H CONSULTANTS, LLC IN AN AMOUNT NOT TO EXCEED $50,592 FOR WORK FOR ALTERNATE REFUSE RATE STRUCTURE IMPLEMENTATION ASSISTANCE FOR THE CITIES OF SAN RAFAEL, LARKSPUR, TOWN OF ROSS, LAS GALLINAS VALLEY SANITARY DISTRICT, AND MARIN COUNTY (INCLUDING ROSS VALLEY SOUTH AND OTHER AREAS OF MARIN COUNTY) WITH COSTS TO BE PAID BY MARIN SANITARY SERVICES WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into a written Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service dated September 4, 2001; and, WHEREAS, the City of San Rafael and Marin Sanitary Service have since entered into a written Second Amendment to the Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service dated November 14, 2012; and, WHEREAS, parties to those deliberations included representatives from the City of San Rafael, the City of Larkspur, the Town of Ross, Las Gallinas Valley Sanitary District, and Marin County (including Ross Valley South); and, WHEREAS, during those deliberations, alternate rate structure implementation work was deemed appropriate by parties to the Second Amendment to the Amendment and Restatement of Collection Agreement, and HF&H Consultants, LLC was asked to submit a scope of work Proposal to address this work to be paid for by Marin Sanitary Services; and, WHEREAS, HF&H Consultants, LLC has submitted a scope of work Proposal that meets the requirements and expectations of the parties to the Second Amendment to the Amendment and Restatement of Collection Agreement, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES AS FOLLOWS: The CITY MANAGER and CITY CLERK are authorized to execute, on behalf of the City of San Rafael, an agreement with HF&H Consultants for refuse rate structure implementation assistance, in a form to be approved by the City Attorney. The agreement shall be for an amount not to exceed $50,592, the terms described in the November 21, 2012 HF&H Consultants, LLC Proposal attached hereto as Exhibit A and incorporated herein by reference. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday the fourth day of February, 2013, by the following vote, to wit: AYES: COUNCILMEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None el�!gtA3Eiz c . ,3e„ � R . ESTHER C. BEIRNE, City Clerk AGREEMENT FOR: Implementation Work on Marin Sanitary Service's 2013 Rate Structure This Agreement is made and entered into this -:5—r" day of February 2013, by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and HF and H Consultants, LLC hereinafter "CONTRACTOR"). RECITALS WHEREAS, the City of Larkspur, the City of San Rafael, the Town of Ross, the County of Marin and the Las Gallinas Sanitary District (the "Franchisors Group") have similar franchise agreements with Marin Sanitary Services; and WHEREAS, the City of Larkspur, the City of San Rafael, the Town of Ross, the County of Marin and the Las Gallinas Sanitary District have utilized a jointly sponsored program to conduct reviews of Marin Sanitary Services operations and expenses pursuant to the Franchise Agreements; and WHEREAS, the Franchisors Group desires to utilize the services of HF& H Consultants to continue the work established in the Rate Methodology Review conducted by HF&H Consultants in 2012; AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: PROJECT COORDINATION A. CITY. The City Manager shall be the representative of the CITY for all purposes under this Agreement. Sustainability Coordinator, Cory Bytof, is hereby designated the PROJECT MANAGER for the CITY, and said PROJECT MANAGER shall supervise all aspects of the progress and execution of this Agreement. B. CONTRACTOR. CONTRACTOR shall assign a single PROJECT DIRECTOR to have overall responsibility for the progress and execution of this Agreement for CONTRACTOR. Robert D. Hilton is hereby designated as the PROJECT DIRECTOR for CONTRACTOR. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute PROJECT DIRECTOR for any reason; the CONTRACTOR shall notify the CITY within ten (10) business days of the substitution. 2. DUTIES OF CONTRACTOR CONTRACTOR shall perform the duties and/or provide services as described in Exhibit "A" attached and incorporated herein. 3. DUTIES OF CITY CITY shall cooperate with CONTRACTOR in his performance under this agreement and shall compensate CONTRACTOR as provided herein. 4. COMPENSATION For the full performance of the services described herein by CONTRACTOR, CITY shall pay CONTRACTOR compensation as set forth in the Fee Estimate included with Exhibit "A" attached hereto, and NOT to exceed $50,592, including the cost of local business license taxes as described in Section 20. Payment will be made monthly upon receipt by PROJECT MANAGER of itemized invoices submitted by CONTRACTOR. 5. TERM OF AGREEMENT The term of this Agreement shall commence upon the date of execution of this agreement and shall end on December 31, 2013. The City Manager shall have the authority to extend the term on a month to month basis until all work achieves satisfactory conclusion. 6. TERMINATION A. Discretionary. Either party may terminate this Agreement without cause upon thirty (30) days written notice mailed or personally delivered to the other party. B. Cause. Either party may terminate this Agreement for cause upon ten (10) days written notice mailed or personally delivered to the other party, and the notified party's failure to cure or correct the cause of the termination notice, to the reasonable satisfaction of the parry giving such notice, within thirty (30) days of the receipt of said notice. C. Effect of Termination. Upon receipt of notice of termination, neither parry shall incur additional obligations under any provision of this Agreement without the prior written consent of the other. D. Return of Documents. Upon termination, any and all CITY documents or materials provided to CONTRACTOR and any and all of CONTRACTOR's documents described in paragraph 7 below, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after termination. 7. OWNERSHIP OF DOCUMENTS 2 The written documents and materials prepared by the CONTRACTOR in connection with the performance of its duties under this Agreement, shall be the sole property of CITY. CITY may use said property for any purpose, including projects not contemplated by this Agreement. B. INSPECTION AND AUDIT Upon reasonable notice, CONTRACTOR shall make available to CITY, or its agent, for inspection and audit, all documents directly related to CONTRACTOR'S performance of its duties under this Agreement. CONTRACTOR shall fully cooperate with CITY or its agent in any such audit or inspection. 9. ASSIGNABILITY The parties agree that they shall not assign or transfer any interest in this Agreement nor the performance of any of their respective obligations hereunder, without the prior written consent of the other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. 10. INSURANCE A. During the term of this Agreement, CONTRACTOR shall maintain, at no expense to CITY, the following insurance policies: 1. A comprehensive general liability insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence for death, bodily injury, personal injury, or property damage; 2. An automobile liability (owned, non -owned, and hired vehicles) insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence; 3. If any licensed professional performs any of the services required to be performed under this Agreement, a professional liability insurance policy in the minimum amount of one million ($1,000,000) dollars to cover any claims arising out of the CONTRACTOR's performance of services under this Agreement. B. The insurance coverage required of the CONTRACTOR by section 10. A., shall also meet the following requirements: 1. The insurance shall be primary with respect to any insurance or coverage maintained by CITY and shall not call upon CITY's insurance or coverage for any contribution; 2. Except for professional liability insurance, the insurance policies shall 3 be endorsed for contractual liability and personal injury; 3. Except for professional liability insurance, the insurance policies shall be specifically endorsed to include the CITY, and other entities in the Franchisors' Group, their officers, agents, employees and volunteers as additionally named insureds under the policies; 4. CONTRACTOR shall provide to PROJECT MANAGER, (a) Certificates of Insurance evidencing the insurance coverage required herein, and (b) specific endorsements naming CITY, and other entities in the Franchisors' Group, their officers, agents, employees and volunteers as additional insureds under the policies; 5. CONTRACTOR shall not cancel, terminate or otherwise modify the terms and conditions of said insurance policies except upon thirty (30) days written notice to CITY's PROJECT MANAGER. 6. If the insurance is written on a Claims Made Form, then, following termination of this Agreement, said insurance coverage shall survive for a period of not less than five years; 7. The insurance policies shall provide for a retroactive date of placement coinciding with the effective date of this Agreement; 8. PROJECT MANAGER and the City Attorney shall approve the insurance as to form and sufficiency. C. If it employs any person, CONTRACTOR shall maintain worker's compensation and employer's liability insurance, as required by the State Labor Code and other applicable laws and regulations, and as necessary to protect both CONTRACTOR and CITY against all liability for injuries to CONTRACTOR's officers and employees. D. Any deductibles or self-insured retentions in CONTRACTOR's insurance policies must be declared to and approved by the PROJECT MANAGER and the City Attorney. At CITY's option, the deductibles or self-insured retentions with respect to CITY shall be reduced or eliminated to CITY's satisfaction, or CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claims administration, attorney's fees and defense expenses. 11. INDEMNIFICATION CONTRACTOR shall indemnify, release, defend and hold harmless CITY, and other entities in the Franchisors' Group, their officers, agents, employees and volunteers, against any claim, demand, suit, judgment, loss, liability or expense of any kind, including attorney's fees, arising out of or resulting in any way, in whole or in part, from any acts or omissions, intentional or negligent, of CONTRACTOR or CONTRACTOR's officers, agents and employees in the performance of their duties and obligations under this Agreement. 4 12. NONDISCRIMINATION CONTRACTOR shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to the performance of its duties and obligations under this Agreement. 13. COMPLIANCE WITH ALL LAWS CONTRACTOR shall observe and comply with all applicable federal, state and local laws, ordinances, codes and regulations, in the performance of its duties and obligations under this Agreement. CONTRACTOR shall perform all services under this Agreement in accordance with these laws, ordinances, codes and regulations. CONTRACTOR shall release, defend, indemnify and hold harmless CITY, and other entities in the Franchisors' Group, their officers, agents and employees from any and all damages, liabilities, penalties, fines and all other consequences from any noncompliance or violation of any laws, ordinances, codes or regulations. 14. NO THIRD PARTY BENEFICIARIES CITY and CONTRACTOR do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 15. NOTICES All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: TO CITY: Mr. Cory Bytof, Sustainability and Volunteer Program Coordinator City of San Rafael 1400 Fifth Avenue P.O. Box 151560 San Rafael CA 94915-1560 TO CONTRACTOR: Mr. Robert D. Hilton, President HF&H Consultants, LLC 201 North Civic Drive, Suite 230 5 Walnut Creek, CA 94596 16. INDEPENDENT CONTRACTOR For the purposes, and for the duration, of this Agreement, CONTRACTOR, its officers, agents and employees shall act in the capacity of an Independent Contractor, and not as employees of the CITY. CONTRACTOR and CITY expressly intend and agree that the status of CONTRACTOR, its officers, agents and employees be that of an Independent Contractor and not that of an employee of CITY. 17. ENTIRE AGREEMENT -- AMENDMENTS A. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. B. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between the CONTRACTOR and the CITY. C. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. D. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by the CONTRACTOR and the CITY. E. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 18. WAIVERS The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance law or regulation, shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 19. COSTS AND ATTORNEY'S FEES The prevailing party in any action brought to enforce the terms and conditions of D this Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs (including claims administration) and attorney's fees expended in connection with such action. 20. CITY BUSINESS LICENSE/OTHER TAXES CONTRACTOR shall obtain and maintain during the duration of this Agreement, a CITY business license as required by the San Rafael Municipal Code. CONTRACTOR shall pay any and all state and federal taxes and any other applicable taxes. CONTRACTOR's taxpayer identification number is 94-3097242, and CONTRACTOR certifies under penalty of perjury that said taxpayer identification number is correct. 21. APPLICABLE LAW The laws of the State of California shall govern this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month and year first above written. CITY OF SAN RAFAEL -Xi1wf 6 t City Manage ATTEST: City Clerk 1-2,0-e,e, APPROVED AS TO FORM: City Attorney CONTRACTOR By:�ftA cLCc�&WL - Name: fou -v a- M . S h&f'(:a►'t--. Title: V t C_e, Pcesi'deA-L,- I EXHIBIT A rit.H ONSUI_.Tf��iTS LLC 01 , 201 N. Civic Drive, Suite 230 Walnut Creek, California 94596 Telephone: 925/977-6950 Fax: 925/977-6955 www.hfh-consultants.com November 21, 2012 Mr. Jim Schutz Assistant City Manager City of San Rafael 1400 Fifth Avenue San Rafael, CA 94919-1560 Managing Tomorrow's Resources Today Subject: Proposal to Provide Rate Structure and Implementation Assistance Dear Mr. Schutz: Robert D. Hilton, CMC John W. Farnkopf, PE Laith B. Ezzet, CMC Richard J. Simonson, CMC Marva M. Sheehan, CPA HF&H Consultants, LLC (HF&H) is pleased to submit this engagement letter to the City of San Rafael (City) to provide rate structure and implementation assistance to the City and the other members of the Franchisors Group. Our proposed work scope, budget, and schedule are provided below and in the attached Fee Estimate. BACKGROUND Earlier this year, HF&H assisted the Franchisors Group by performing rate analyses and developed alternative rate structures that are intended to stabilize rate revenues and incentivize waste reduction. They depart from the current practice of billing customers solely based on the size and frequency of collection of their refuse service (the "black can"). The Franchisors' Group and MSS evaluated these rate structures but determined that significant public outreach, consideration, and education would need to be performed before a new approach should be implemented. Therefore, an implementation plan was assembled to lay out future steps should the governing bodies of the Franchisors' Group entities be interested in pursuing new rate structures. This plan includes: • Creating an appropriate description of the approach in order to begin the public discussion of the rate structure. • Identifying implementation and transition issues and adopting procedures and policies to address those issues. • Revising the draft rate structure in accordance with the resolution of the implementation and transition issues. • Preparing effective presentations that focus on the economic benefits to customers as well as the environmental benefits. • Selecting a small implementation customer group (with the fewest possible number of customers) in order to gain experience and learn from the experience (e.g., commercial vs. residential or a smaller jurisdiction vs. system wide) for initial implementation. EXHIBIT A - � � I U.A. Mn M „M I '.�• Managing Tomorrow's Resources Today Mr. Jim Schutz November 21, 2012 Page 2 of 4 • Selecting and developing outreach tools. These could include handouts and online calculators. • Identifying the lessons learned once the initial customer group is experienced with the new rate structure. The Franchisors' Group and MSS could then fine tune both the rate structure and outreach/public education effort to address the needs of the broader customers to which the rate structure could be expanded. With the Council's concurrence, staff sought a proposal from HF&H for professional services related to the above tasks. If approved by the Council, staff will work with the Franchisors' Group, MSS, and HF&H to carry out a scope of work (described below) intended to provide the franchising agencies with the necessary information and products to implement rate structure changes. This process will obviously require community meetings and input as well. No obligation would be required for any of the franchising agencies to implement rate structure changes, but the work would provide the expertise to do so should the governing bodies' desire. It is anticipated that a new rate structure could be in place for the selected customer group as early as the 2014 rate year. APPROACH The work to be performed is a mixture of financial analysis and public outreach and education. HF&H, the Franchisors Group and Marin Sanitary Service have developed a scope of work that cost-effectively captures the benefits of the earlier work performed by HF&H and utilizes the public outreach and education resources of Marin Sanitary Service to minimize cost. While in Task 3 we will develop alternative rate structures that consider both residential and commercial customers, the focus of the engagement will be on developing rate structures for commercial customers. Once we learn from the application of the rate structure to commercial customers, it will be modified from lessons learned and expanded to the larger residential customer base. HF&H will perform the major tasks outlined below. WORK SCOPE Task 1: Initiate Proiect HF&H will survey other clients and other agencies to obtain examples of similar rate structures and public outreach materials recently used by other agencies. Thereafter, HF&H will prepare for and facilitate a meeting with the Franchisors' Group and MSS to discuss the specific objectives of the project for each agency, share the results of its survey of other agencies and refine the project work plan and schedule. At the conclusion of this task, HF&H will review the results with the San Rafael Climate Change Action Plan Committee. EXHIBIT A Managing Tomorrow's Resources Today Mr. Jim Schutz November 21, 2012 Page 3 of 4 Task 2: Obtain and Analvze Cost, Rate and Customer Account Data HF&H will obtain from MSS and review the following data. • Estimated costs of service by line of business and services (e.g., commercial and residential refuse, recyclable and organics services) and develop agreed upon estimates of costs by line of business and service. • Current customer subscription data and estimates of recyclable material and organic material containers by customers, participation and set out rates for such services. Task 3: Develop Alternative Rate Structures Using the information from Task 2, HF&H will prepare up to three rate structures and apply them to both residential and commercial customers, based on the objectives identified during the project initiation meeting (Task 1). It is anticipated that the focus of these rate structures will be commercial customer rates. (Expansion of the rate structure into residential customers would follow implementation in the smaller commercial customer base.) As part of this task, HF&H will evaluate the impact from the change in structure on certain classes of customers. At the conclusion of this task, HF&H will review the results with the San Rafael Climate Change Action Plan Committee. Task 4: Conduct Public Outreach and Education HF&H will provide support to MSS's public outreach and education staff and consultants. This support is anticipated to include: participation in developing the outreach and education plan, participation in focus groups, review of outreach materials, attendance at Franchisors Group board and council meetings. Task 5: Review Post Imolementation Results HF&H will meet with the Franchisors Group and MSS to review the results six months after implementation and discuss next steps (e.g., expansion of rate structure approach to residential customers and/or additional member agencies of the Franchisors' Group). LIMITATIONS Each engagement is subject to certain limitations. The most significant limitations regarding this engagement are as follows: • Our project budget and schedule assume that MSS will provide the necessary data in a complete and timely manner. • Our project budget accounts for 4 total meetings with the Franchisor Group staff and Company staff, 2 meetings with the San Rafael CCAP Committee, 3 focus group meetings, and 5 member agency council meetings. EXHIBIT A Managing Tomorrow's Resources Today Mr. Jim Schutz November 21, 2012 Page 4 of 4 We will issue one draft of our report which we will revise, as appropriate, based on written comments received from the staff of the member agencies and MSS. STAFFING Bob Hilton will act as the Engagement Director for HF&H on this project. Bob will attend each meeting with the City and be responsible for ensuring the overall quality of the analysis and work products presented. Marva Sheehan will act as HF&H's Project Manager for this project. Marva managed the prior related engagement as well as numerous reviews of rate applications submitted by MSS. They may be assisted by qualified junior staff who will work under their direction, as appropriate, for the tasks being performed. BUDGET We propose to complete the above scope of work for a not to exceed fee of $42,700 plus estimated out of pocket expenses of $1,500. We suggest that a 15% contingency be included in the budget for release by the City's engagement manager should the need for additional meetings or analyses be deemed necessary. The total budget plus contingency is $50,592. HF&H will invoice the City for our services monthly on a time and materials basis. SCHEDULE HF&H anticipates commencing the project in December and completing the project in July, prior to MSS' application for a rate adjustment effective January 2014. Should you have any questions regarding this submittal, please call me directly at (925) 977-6952. Very truly yours, HF&H CONSULTANTS, LLC Robert D. Hilton, CMC President Attachment: Fee Estimate cc: Cory Bytof, Sustainability and Volunteer Program, City of San Rafael Marva Sheehan, Vice President, HF&H Consultants, LLC Kim Erwin, Office Manager, HF&H Consultants, LLC