HomeMy WebLinkAboutCC Resolution 12052 (MSS Rates 2007)RESOLUTION NO. 12052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING TWO AGREEMENTS WITH HILTON, FARNKOPF & HOBSON, LLC
1) TO PERFORM A REVIEW OF MARIN SANITARY SERVICE'S 2007 RATE
APPLICATION (AGREEMENT SEPTEMBER 2006 TO JUNE 30, 2007), AND
2) TO PUBLISH A SAN RAFAEL RATE RECOMMENDATION REPORT.
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, two agreements with Hilton, Farnkopf & Hobson, LLC for 1) review of Marin Sanitary
Service's 2007 rate application (agreement September 2006 to June 30, 2007) and 2) publication
of a San Rafael rate recommendation report, in a form to be approved by the City Attorney.
I, JEANNE M. LEONCINI, 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 18th day of September, 2006, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
M
JEANNE M. LEONCINI, City Clerk
W:\City Managers- WorkFile\Council Material\Resolutions\2006\reso Hilton Audit 091806.doc
AGREEMENT
FOR: Review of Marin Sanitary Service's
2007 Rate Application
This Agreement is made and entered into this 18th day of September 2006, by and
between the CITY OF SAN RAFAEL (hereinafter "CITY"), and HIQn Farnkoof and Hob -;nn I I
hereinafter "CONTRACTOR").
A. CITY. The City Manager shall be the representative of the CITY for all
purposes under this Agreement. Economic Development Specialist, Stephanie Lovette, 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.
CONTRACTOR shall perform the duties and/or provide services as described in
Exhibit "A!' attached and incorporated herein.
CITY shall cooperate with CONTRACTOR in his performance under this
agreement and shall compensate CONTRACTOR as provided herein.
For the full performance of the services described herein by CONTRACTOR, CITY
shall pay CONTRACTOR an amount NOT to exceed $78,800, 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.
& • ►
The term of this Agreement shall commence upon the date of execution of this
agreement and shall end on June 30, 2007.
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
party giving such notice, within thirty (30) days of the receipt of said notice.
C. Effect of Termination. Upon receipt of notice of termination, neither party
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.
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.
►•►
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.
►MAI
. .11111
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.
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 11. 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
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. The insurance policies shall provide that the insurance carrier 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.
3
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.
iI 11• U7:11Ji10111aIST-AIrorkI
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.
Wimmi[iL "60 1016"103 1.118 1161 F-111 110104 1
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.
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 THIRQ_EARTY R
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: Stephanie Lovette, Economic Development Specialist
City of San Rafael
1400 Fifth Avenue
P.O. Box 151560
San Rafael CA 94915-1560
TO CONTRACTOR: Mr. Robert D. Hilton, President
Hilton Farnkopf and Hobson, LLC
2175 North California Boulevard, Suite 990
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. FNTIRF 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.
9
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.
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.
The prevailing party in any action brought to enforce the terms and conditions of
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 LIQFNSE/OTHFR TSS
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.
The laws of the State of California shall govern this Agreement.
6
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month
and year first above written.
CITY OF SAN RAFAEL
City Ma er KENNETH A. NOR F
ATTEST:
City leek JEANNE M. LEONCINI
City
CONTRACTOR HILTON FARNKOPF AND HOBSON, LY
By:
Name: ROBERT D. HILTON
Title: PRESIDENT
WAManagement Services- WorkFile\Finance- WorkFile\Agreement and Contracts\Professional Contracts\2006\HF&H Refuse
Report San Rafael.doc
Ire
HF&H CONSULTANTS, LLC
Advisory Services to
_= Municipal Management
2175 N. California Boulevard, Suite 990
Walnut Creek, California 94596
Telephone: 925/977-6950
Fax: 925/977-6955
www.hfi-consultants.coni
September 5, 2006
Sent via a -mail
Ms. Jean Bonander
City Manager
City of Larkspur
400 Magnolia Ave.
Larkspur, CA 94939
Mr. Jeff Rawles
Manager Special Projects
County of Marin
3501 Civic Center Drive, Room 404
San Rafael, CA 94903-4155
Mr. Mark Williams
District Manager
Las Gallinas Valley Sanitary District
300 Smith Ranch Road
San Rafael, CA 94903
Mr. Kenneth A. Nordhoff
Interim City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94915-1560
Mr. Gary Broad
Town Manager
Town of Ross
31 Sir Francis Drake Blvd.
Ross, CA 94957
Exhibit A
Northern California
Southern California
Robert D. Hilton, CMC
John W. Farnkopf, PE
Laith B. Ezzet, CMC
Subject: Proposal to Review Marin Sanitary Service's Application for 2007 Rates
Dear Ms. Bonander and Messrs. Nordhoff, Rawles, Broad, and Williams:
HF&H Consultants, LLC (HF&H) is pleased to present this proposal to perform a review of
Marin Sanitary Service's (MSS) application for rates to be effective January 1, 2007.
BACKGROUND
In 1995, the Cities of San Rafael and Larkspur, the Town of Ross, the Ross Valley and Las
Gallinas Valley Sanitary Districts, and the County of Marin (the Franchisors) adopted a new
methodology that would be used to set MSS's rates for refuse collection and disposal as well as
recyclable and yard waste collection and processing. The methodology is based on a detailed
review (performed every three years) with summary reviews (based largely on the detailed
review, the use of indices, and the review of a few key matters such as revenues and disposal
costs) during the intervening years.
In 2002, MSS was awarded the franchise to provide services to the City of San Anselmo. Also in
2002, MSS was awarded the franchise to provide services to the north area of the Ross Valley
Sanitary District. In 2004, MSS acquired the Fairfax franchise. These expansions of service, and
the need to allocate MSS's costs among the Franchisors and these new jurisdictions, make even
more important the proper allocation of MSS's costs among the jurisdictions it services to
ensure that the Franchisors are not paying a share of the costs to service San Anselmo, Fairfax,
and the north area of the Ross Valley Sanitary District. In 2005, customers that were in the Las
- - HF&H CONSULTANTS, LLC
Marin Sanitary Service's Franchisors' Group
September 5, 2006
Page 2 of 7
Gallinas Valley Sanitary District franchise area were integrated into the customer base of the
City of San Rafael. Under a separate contract with the City of San Rafael, we are assisting in
developing a rate structure that will meet MSS's revenue requirement after the integration.
In 2003, the last detailed review was performed for rates to be effective in 2004. Rates for 2005
and 2006 were set using the indexed method. For a review of rates to be effective 2007, we have
been asked to:
• Perform a detailed review; and,
• Perform a survey of similar rates from cities in the Bay Area receiving comparable services.
SCOPE OF SERVICES
Our scope of services is comprised of the following tasks:
Task 1: Preliminary Application Review
1.1 Kick -Off Meeting with Company. HF&H will meet with the Company to receive the
Company's Application and a presentation by the Company of the major matters
leading to any rate adjustments.
1.2 Completeness and Compliance Review. Upon receipt of the Application, HF&H staff
will test the compliance of the current Application to the current procedures. We will
seek explanations for any unusual findings and we will inform the Company of any
matters that come to our attention that lead us to believe the Application is either not in
compliance or is inconsistent.
1.3 Mathematical Accuracy and Logical Consistency Review. HF&H staff will test the
mathematical accuracy of all of the tables contained in the Application. We will verify
that the Application is internally consistent and that any summary schedules agree to
the supporting schedules or worksheets. We will seek explanations for any unusual
findings and we will inform the Company in writing of any matters that may come to
our attention that lead us to believe that the Application is not mathematically correct or
logically consistent.
1.4 Reconciliation to Financial Statements. HF&H staff will reconcile the Application to
the Company's most recent financial statements. We will seek explanations for any
unusual findings and we will inform the Company in writing of any adjustments that
may come to our attention that may be necessary to reconcile the Application to the
financial statements.
Awk
- HF&H CONSULTANTS, LLC
Marin Sanitary Service's Franchisors' Group
September 5, 2006
Page 3 of 7
Task 2: Revenue Testing
HF&H staff will assess the reasonableness of the Company's reported actual 2005, estimated
2006, and projected 2007 revenues by reviewing the current customer subscription data times
the current rates. Additionally, we understand the Company has implemented a new
accounting/ billing system in 2006. We will compare the rate tables in the new system to those
rates approved by the Franchisors. Additionally, we will select a sample of residential and
commercial accounts to verify the proper transition of subscription activity. We will review
non -rate revenue for consistency and reasonableness. We will seek explanations for any
unusual findings, and we will inform the Company of any adjustments that may come to our
attention that we may believe are necessary to these estimated and projected revenues.
Task 3: Expense Testing
3.1 Review Forecasted Annual Cost of Operations. HF&H staff will review the Company's
reported actual 2005, estimated 2006, and forecasted 2007 annual cost of operations. We
will test the following expenses for reasonableness based on historical trends,
consistency with operating data, and consistency with management's plans: Wages and
Salaries; Benefits Expense; Transfer, Transport, Disposal, and Processing Expense; Fuel
and Oil Expense; Equipment and Vehicle Maintenance Expense; Depreciation/ Lease
Expense; Interest Expense; and, Miscellaneous Expenses. HF&H will test individual
transactions to ensure non -allowable costs have been excluded from the 2007 forecasted
annual cost of operations. We will seek explanations for any unusual findings and we
will inform the Company of any adjustments that we believe are necessary to these
estimated and projected expenses.
3.2 Review Allocation Methodology. I1F&H will review the methodology used by MSS to
allocate operating expenses to the individual jurisdictions to assure consistency with the
agreed to methodology previously developed. We will seek explanations for any
unusual findings and will inform the Company of any adjustments that may come to
our attention that we may believe are necessary to the estimated and projected expenses.
Task 4: Profit Calculation
HF&H staff will calculate a reasonable profit using a 90.5% operating ratio applied to the
forecasted annual cost of operations, as those forecasted annual cost of operations submitted in
the Application may be adjusted.
Task 5: Calculation of Necessary Rate Adjustments
HF&H staff will calculate the difference between the projected revenue requirement (expenses
plus profit) and revenues at current rates, to determine the amount of any rate adjustment for
2007.
W HF&H CONSULTANTS, LLC
Marin Sanitary Service's Franchisors' Group
September 5, 2006
Page 4 of 7
Task 6: Comparison of Actual to Forecasted Results
HF&H staff will compare the actual results for 2004 and 2005 to those anticipated when the
rates were set using the indexed methodology and obtain and document explanations from the
Company of any variations.
Task 7: Communication of Results
7.1 HF&H staff will meet once with MSS management to discuss the preliminary findings
from our review and receive additional information from the Company that may revise
our preliminary findings.
7.2 HF&H staff will draft an initial report, based on the results from the above meeting;
provide it to MSS management for review. Thereafter, we will confer with MSS
management to discuss its comments regarding our initial draft report.
7.3 Based on the above meeting, HF&H will make any appropriate adjustments to our initial
draft report and present a preliminary draft to the Franchisors. Thereafter, we will
confer with the Franchisors to discuss its comments regarding our preliminary draft
report.
7.4 Based on the comments from the Franchisors, we will amend the preliminary draft
report and issue the final report.
Task 8: Survey of Comparable Rates
We will survey solid waste rates in the San Francisco Bay Area. We will identify communities
with comparable services and contact them to solicit their participation and determine whether
certain data is available. That data includes, but is not limited to, matters such as governmental
fees, whether a transfer station is used, landfill disposal rates, whether employees are
organized, and customer subscription data. As part of the survey we will attempt to compare
not only the absolute rates but also the rate structures so that we may identify differences in
pricing (vs. cost).
Task 9: Engagement Management
We will prepare and amend detailed work plans, monitor engagement progress, and provide
sufficient resources to ensure timely completion of the engagement, review analytical results
and interim findings, review the draft and final reports, and respond to questions regarding the
progress of the engagement and other issues.
a
WHF&H CONSULTANTS, LLC
Marin Sanitary Service's Franchisors' Group
September 5, 2006
Page 5 of 7
SCHEDULE
Recognizing that we are reliant upon the Company for the timely preparation of documents
and response to our questions, we plan to perform this engagement in accordance with the
following schedule:
Activity
Kick -Off Meeting
Commence Fieldwork
Present Preliminary Findings to MSS
Provide MSS Draft Report
MSS Provides Comments on Draft Report
Provide Franchisors with Draft Report
Franchisors Provides Comments on Draft Report
Provide Franchisors and MSS with Final Report
LIMITATIONS
Completion Date
September 21, 2006
Week of September 25, 2006
October 30, 2006
November 17, 2006
November 27, 2006
December 11, 2006
December 18, 2006
December 29, 2006
Every approach to an engagement is limited in its scope. The major limitations regarding our
proposed scope of work are:
The scope of work described above is different from an audit of financial statements
performed in accordance with Generally Accepted Auditing Standards, which is
performed by MSS's auditor.
We will perform the tasks presented above in a manner that will allow us to achieve the
objectives of the review in a cost-effective manner. We will rely on MSS's auditor with
regard to matters related to MSS's internal controls. Our testing of MSS's Application
(using judgmental samples of transactions and analytical procedures) will only be for the
purpose of providing evidence that allows us to reach conclusions and recommendations
regarding MSS's Application.
We will conduct our review in accordance with the Contractor's Compensation and Rate
Adjustment Methodology adopted by the Franchisors Group. This methodology includes
the review of MSS management's projection of the future results of operations. We will
review these projections for reasonableness and propose adjustments, as appropriate. We
accept no responsibility to update these adjusted projected results after the date of our
report. Additionally, the projections result from assumptions regarding future events and
management's planned response to them. Frequently, future events do not occur as
anticipated and the difference can be material.
fti��
HF&H CONSULTANTS, LLC
Marin Sanitary Service's Franchisors' Group
September 5, 2006
Page 6 of 7
Further, we have neither included in the scope of our work modifications to any of the
individual Franchisor's rates nor rate structures. We will continue working with the City of
San Rafael in evaluating their rate structure after integrating the accounts from the Las Gallinas
Valley Sanitary District and are preparing a separate proposal. If any other of the Franchisors
would like us to perform modifications to their rate structures, we would be pleased to do so
based on arrangements made with the requesting Franchisor.
Finally, we have not included in the scope of our work presentations to the Franchisors'
governing bodies. However, we would be pleased to do so based on arrangements made with
the requesting Franchisor.
FIRM AND PROPOSED ENGAGEMENT TEAM QUALIFICATIONS
Since its founding nearly 17 years ago, HF&H Consultants, LLC has been providing
independent solid waste rate review services to municipalities throughout California and the
West Coast. Of particular relevance to this engagement, HF&H has been the Franchisors'
consultant in this area for more than ten years. During that period, we have helped the
Franchisors to substantially reduce the cost of the review through changes in methodology,
while ensuring that both the customers' rates and MSS's level of profit are reasonable.
I will be responsible for directing the project and will perform all sub -tasks related to the project
management task described above, as well as attend all meetings with the Franchisors and key
meetings with MSS management. I have been the Engagement Director and substantially
involved in each of these annual reviews since 1995, and I am well known to both the
Franchisors and MSS management. During the past 20 years, I have assisted more than 100
municipalities with nearly 400 solid waste consulting engagements, most of which have
involved the cost of solid waste services.
I will be assisted by less senior, experienced staff at lower billing rates, who will perform certain
tasks under my direction.
Marva Sheehan will serve as Engagement Manager under my close supervision. Ms. Sheehan
was the Engagement Manager during the 2006 index review. She is a Certified Public
Accountant with over 25 years of accounting and auditing experience; 13 of which have been in
the solid waste industry. She will supervise and review the work performed by the staff
assigned to the project to ensure that it is performed in accordance with the proposed scope of
work; our detailed work plans, and meets the Franchisor's objectives.
Rob Hilton will assist Ms. Sheehan. Mr. Hilton has worked on the South Bayside Waste
Management Authority detailed rate review for the past four years. He will perform certain
data gathering, organization, and analyses tasks under Ms. Sheehan s direct supervision.
a
HF&H CONSULTANTS, LLC
Marin Sanitary Service's Franchisors' Group
September 5, 2006
Page 7 of 7
FEES
Based on the tasks performed during our last detailed review, my current understanding of the
additional matters to be considered during this review, and the level of effort necessary to
address them, I estimate our professional fees and out-of-pocket expenses for the scope of work
described above to be $78,800, as shown on Attachment A.
As in the past, we will bill you in accordance with our standard rates and practices as described
in Attachment B up to the $78,800. It is possible that the level of effort to perform the review
and address the additional matters may exceed our estimate and, if so, we will contact you
before proceeding to obtain your approval or direction. Also, it is possible that our level of
effort will be less and, if so, we will, of course, bill you the lesser amount.
We sincerely appreciate the continued confidence you have expressed in HF&H and we are
committed to do our best to fulfill your objectives. Should you have any questions, please call
me at 925/977-6952.
Very truly yours,
HF&H CONSULTANTS, LLC
� /
Robert D. Hilton, CMC
President
Attachments: Fee Estimates
Billing Rates
cc: Mr. Joe Garbarino, Jr., Marin Sanitary Service
Mr. Joe Garbarino, Sr., Marin Sanitary Service
Ms. Patty Garbarino, Marin Sanitary Service
Ms. Marva Sheehan, HF&H
Ms. Kim Erwin, HF&H
Task/Step
Descriotion
Task 1
Preliminary Anolication Review
1.1
Kick -Off Meeting with Company
1.2
Completeness & Compliance Review
1.3
Math Accuracy & Logical Consistency
1.4
Reconciliation to Financial Statements
Sub -total
Hours
Fees
Task 2
Revenue Testina
Sub -total
Hours
Fees
Task 3
Lxoense Testino
3.1
Review Forecasted Annual Cost of Operations
3.2
Review Allocation Methodology
Sub -total
Hours
6
Fees
Task 4
Sub -total
Profit Calculation
Hours
44
Fees
Task 5
Calculation of Necessary Rate Adiustments_
Sub -total
Hours
Fees
Task 6
Comparison of Actual to Forecasted Results
Sub -total
Hours
$3,500
Fees
Task 7
Communication of Results
7.1
Present Preliminary Findings to MSS
7.2
Draft Report
7.3
Revise Draft Report and Present to Franchisors
7.4
Final Report
Sub -total
Hours
4
Fees
Task
Enaaaement Manaaement
Sub -total
Hours
$10,500
Fees
Total Fees
$19,800
Attachment A
Fee Estimate
Hilton
Sheehan
Associate
Admin
Total
Billing Rate $235.00
$175.00
$110.00
$75.00
4
4
2
2
12
2
8
2
8
6
10
28
0
44
$1,410
$1,750
$3,080
$0
$6,240
20
20
40
$0
$3,500
$2,200
$0
$5,700
52
52
4
8
24
4
60
76
0
140
$940
$10,500
$8,360
$0
$19,800
1
1
$0
$175
$0
$0
$175
10
10
20
$0
$1,750
$1,100
$0
$2,850
4
12
8
24
$940
$2,100
$880
$0
$3,920
8
8
4
20
34
8
8
8
8
4
4
8
8
8
8
44
58
24
20
146
$10,340
$10,150
$2,640
$1,500
$24,630
24
24
0
0
48
$5,640
$4,200
$0
$0
$9,840
Hours 82
195
166
20
463
Fees $19,270
$34,125
$18,260
$1,500
$73,155
Out -of -Pocket Expenses
$1.845
Sub -total
$75,000
Contingency
$3.800
Total Budget
S:\Clients\S\San Rafael\2006 - SW\Proposal\Fee Estimate.xls
Attachment B
HF&H CONSULTANTS, LLC
STANDARD HOURLY RATES AND BILLING ARRANGEMENTS'
(Effective January 1, 2006)
Professional Fees
Hourly rates for professional and administrative personnel are as follows:
Position Rate
President
$235
Senior Vice President & Vice President
$180-$220
Senior Manager
$175-185
Senior Associate
$145-$175
Associate
$105-$115
Assistant Analyst
$75-$85
Administrative Staff
$75
Direct Expenses
Standard charges for common direct expenses are as follows:
Automobile Travel
Document Reproduction
Facsimile
Telephone
Public Conveyances
Postage
Overnight Mail and Couriers
Prevailing IRS mileage rate
15 cents per page (black & white)
75 center per page (color)
No charge
No charge
Actual
Actual
Actual
' Litigation Support and Expert Witness Services are not covered by this schedule of fees and expenses.
HF&H CONSULTANTS, LLC
STANDARD HOURLY RATES AND BILLING ARRANGEMENTS'
(Effective January 1, 2006)
Billing Policies
Our policy is to bill for our services and direct expenses based on the standard hourly rates of
the staff member assigned, multiplied by the time required to perform the client -related tasks,
plus the subcontractor services as described above. In implementing this policy we adhere to
the following practices:
• We round to the nearest one-half hour (e.g., if two hours and 50 minutes are spent on a task,
it is recorded as three hours, if two hours and 10 minutes are spent on a task, it is recorded
as two hours). A minimum charge of one-half hour is charged for any client work
performed in a day.
• We attempt to schedule travel time before and after normal work hours and we do not bill
for this time. If travel occurs during normal work hours and we can use public
conveyances, we attempt to use the time productively for the benefit of the client or for
another client and this time is billed to the appropriate client. If we must travel during
business hours and cannot use the time productively or use a public conveyance, we bill the
time to the client on whose behalf we are traveling.
• Because public meetings (e.g., Board of Supervisors, City Council, and Board of Directors
meetings) generally occur after business hours and are not conducted in accordance with
strict schedules, our standard policy is to bill a minimum two-hour charge.
• We do not mark up out-of-pocket expenses, however, we may charge administrative or
professional time related to the provision of the goods and services associated with these
charges. Costs for outside consultants and subcontractors are billed at actual cost plus a 15
percent administrative fee.
• Mileage fees are based on the round-trip distance from the point of origin.
• If a client's change to a previously scheduled meeting results in penalties being assessed by
a third party (e.g., airline cancellation fee), then the client will bear the cost of these
penalties.
While no minimum fee for a consulting engagement has been established, it is unlikely (given
the nature of our services) that we can gain an understanding of a client's particular
requirement, identify alternatives, and recommend a solution in less than twenty-four hours.
HF&H Consultants, LLC Page 2 of 3
HP&H CONSULTANTS. LLC
STANDARD HOURLY RATES AND BILLING ARRANGEMENTS)
(Effective January 1, 2006)
Insurance
We maintain the following policies of insurance with carriers doing business in California:
• Comprehensive General Liability Insurance ($2,000,000)
• Workers' Compensation ($1,000,000)
• Professional Liability Insurance ($2,000,000)
All costs incurred in complying with special insurance, licensing, or permit requirements,
including but not limited to naming client as an additional insured and waiver of subrogation,
become the responsibility of the client and are not included in the fees for services or direct
charges but are billed in addition to the contract at cost, plus any professional or administrative
fees.
Invoices and Payment for Services
Our time reporting and billing system has certain standard formats that are designed to provide
our clients with a detailed invoice of the time and charges associated with their engagement.
(We typically discuss these with our clients at our kick-off meeting.) We are also pleased to
provide our clients with a custom invoice format but we will have to bill the client for any
additional costs associated with their unique requirements.
Billings for professional services and charges are submitted every month, in order that our
clients can more closely monitor our services. A late fee of one and one-half percent per month
is applied to balances unpaid after thirty (30) days.
HF&H Consultants, LLC Page 3 of 3
AGREEMENT
FOR: Marin Sanitary Service's
2007 Rate Application Individual Report for the City of San Rafael
This Agreement is made and entered into this 18th day of September 2006, by and
between the CITY OF SAN RAFAEL (hereinafter "CITY"), and Hilton Farnkopf and Hobson. LLC
hereinafter "CONTRACTOR").
A. CITY. The City Manager shall be the representative of the CITY for all
purposes under this Agreement. Economic Development Specialist, Stephanie Lovette, 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 n 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.
CONTRACTOR shall perform the duties and/or provide services as described in
Exhibit "8" attached and incorporated herein.
CITY shall cooperate with CONTRACTOR in his performance under this
agreement and shall compensate CONTRACTOR as provided herein.
For the full performance of the services described herein by CONTRACTOR, CITY
shall pay CONTRACTOR an amount NOT to exceed $6,540, 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.
The term of this Agreement shall commence upon the date of execution of this
agreement and shall end on June 30, 2007.
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
party giving such notice, within thirty (30) days of the receipt of said notice.
C. Effect of Termination. Upon receipt of notice of termination, neither party
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.
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.
► Is] 04 :►�
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.
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.
A. During the term of this Agreement, CONTRACTOR shall maintain, at no
expense to CITY, the following insurance policies:
I . 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 11. 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
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. The insurance policies shall provide that the insurance carrier 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.
3
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.
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.
11114111111111111111 ►•►9 :u ►_ •►
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.
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.
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.
Q
15. hinTIr,Rj
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: Stephanie Lovette, Economic Development Specialist
City of San Rafael
1400 Fifth Avenue
P.O. Box 151560
San Rafael CA 94915-1560
TO CONTRACTOR: Mr. Robert D. Hilton, President
Hilton Farnkopf and Hobson, LLC
2175 North California Boulevard, Suite 990
Walnut Creek, CA 94596
16. INDEPENDFNT 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.
_►� I a ►0LVA
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.
5
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.
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.
The prevailing party in any action brought to enforce the terms and conditions of
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.
1.191%01104 ► • ;
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.
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
City Mana r KENNETH A. NOR FF
ATTEST:
City Clerk JEANNE M. LEONCINI
APPROVED AS TO
City Attorney GAV
M:
. RAGGHIANTI
CONTRACTOR HILTON FARNKOPF AND HOBSON, L<<
z
By:
Name: ROBERT D. HILTON
Title: PRESIDENT
WAManagement services- WorkFile\Finance- WorkFile\Agreement and Contracts\Professional Contracts\2006\HF&H Refuse
Contract 06.doc
7
Exhibit A
HF&H CONSULTANTS, LLC Northern California
Advisory Services to Southern California
Municipal Management
2175 N. California Boulevard, Suite 990 Robert D. Hilton, CMC
Walnut Creek, California 94596 John W. Farnkopf, PE
Telephone: 925/977-6950 Laith B. Ezzet, CMC
Fax: 925/977-6955
urww. h f h -consul to n ts. co m
September 14, 2006
Via e -snail; original to follow
Mr. Ken Nordhoff
City Manager
City of San Rafael
1400 Fifth Ave., P.O. Box 151560
San Rafael, CA 94915-1560
Subject: Proposal to Review Marin Sanitary Service's Application for 2007 Rates -
Individual Report for the City of San Rafael
Dear Mr. Nordhoff:
The City of San Rafael (City) has requested that HF&H Consultants, LLC (HF&H) as part of the
review of Marin Sanitary Service's (MSS) application for rates to be effective January 1, 2007,
evaluate possible rate adjustments resulting from the integration into the City of residential and
commercial accounts that, prior to 2005, were part of the Las Galinas Valley Sanitary District.
This letter communicates our proposed work scope for that project as well as our projected fees.
BACKGROUND
During 2005, the customers that were in the Las Galinas Valley Sanitary District franchise area
(new customers) were integrated into the City of San Rafael. At that time, new customers' rates
were revised to be consistent with those rates charged in the City of San Rafael. According to
MSS, this resulted in the rates generating approximately $300,000 in revenues less than required
to meet MSS' revenue requirement. As part of the rate setting process for the 2006 rate year, an
additional rate adjustment of 6% was necessary to generate sufficient revenue to meet MSS'
compensation requirement. $291,000 or 2.3 % of the increase related to a one time adjustment
for 2005 franchise fees. As a result, the City has asked HF&H to review the MSS proposed rate
calculation for 2007 for the City to ensure the calculation properly reflects the reversal of the one
time adjustment and other adjustments resulting from the change in the franchise area of the
City.
WORK SCOPE
Our proposed scope of work includes the following tasks:
1. Obtain the 2007 MSS revenue requirement from the City of San Rafael customer base.
2. Review the basis for MSS' calculation of a revenue surplus or shortfall and determine,
based on the current rate structure, the average change to existing rates that would be
necessary to offset this surplus or shortfall.
Adlbk
OW HF&H CONSULTANTS, LLC
Mr. Ken Nordhoff
September 14, 2006
Page 2 of 2
3. Recalculate the "reversal" of the 2005 Franchise Fee adjustment based upon data
received from MSS.
4. Review all other adjustments specifically identified to San Rafael.
5. Recalculate the percentage change to rates based upon findings.
6. Communicate findings with MSS.
7. Prepare a draft report for review by the City and MSS for comment.
8. Revise the report for the comments received during task 7 and for the results of the
review of the 2007 rate application and prepare a final report for presentation to the City
Council.
9. Support the City staff by attending Council meetings to answer any questions regarding
the proposed rate methodology.
PROJECTED FEES
Because of the nature of this engagement, we propose to bill you on a time and materials basis
at our standard billing rates. Our estimated fee, including out-of-pocket expenses, for
performing the nine tasks as described above, is $6,540. If less effort is required, we will bill
you a lesser amount. If additional fees are necessary, we will inform you before proceeding.
If the terms of this engagement are acceptable to the City, please indicate by signing below.
Should you have any questions, please feel free to call me at 925/977-6952.
Very truly yours,
HF&H CONSULTANTS, LLC
%-?� 'tetz�
(Car�pr�
Robert D. Hilton, CMC
President
cc: Kim Erwin - HF&H
Marva Sheehan - HF&H
Approved:
this day of 200_
for the City of San Rafael
Attachment A
Fee Estimate
S:\Clients\S\San Rafael\2006 - SW\Proposal\Fee Estimate - San Rafael b.xls
Hilton
Sheehan
Associate
Admin
Total
Billing Rate
$235.00
$175.00
$110.00
$75.00
Task/Step
Description
Task 1
Obtain San Rafael Comoensation Reauest from MSS
1.1
Review for mathematical accuracy
1
Agree request to Franchisors Group consolidated
1.2
workpapers
1
Sub -total
Hours
0
2
0
0
2
Fees
$0
$350
$0
$0
$350
Task 2
Review MSS calculation of San Rafael Adiustment
1
Sub -total
Hours
0
1
0
1
Fees
$0
$175
$0
$0
$175
Task 3
Recalulate 2005 Franchise Fee adiustment
3.1
Compare current adjustment to projected adjustment from prior year
1
3.2
Obtain explanation of variance
1
2
Sub -total
Hours
0
1
3
0
4
Fees
$0
$175
$330
$0
$505
Task 4
Review other adiustments
4.1
Obtain support of other adjustments
3
2
4.2
Review/recalculate adjustments
2
Sub -total
Hours
0
5
2
0
7
Fees
$0
$875
$220
$0
$1,095
Task 5
Calculation of Necessary Rate Adiustments
2
4
Sub -total
Hours
0
2
4
0
6
Fees
$0
$350
$440
$0
$790
Task 6
Communication of Results
6_1
Present Preliminary Findings to MSS
1
1
6_2
Draft Report
1
3
1
1
6_3
Revise Draft Report and Present to City
3
1
6_4
Final Report
1
4
Sub -total
Hours
3
11
1
2
17
Fees
$705
$1,925
$110
$150
$2,890
Task 8
Enoaaement Management
Sub -total
Hours
1
2
0
0
3
Fees
$235
$350
$0
$0
$585
Total Fees
Hours
4
24
10
2
40
Fees
$940
$4,200
$1,100
$150
$6,390
Out -of -Pocket Expenses
$150
Sub -total
$6,540
Contingency
$0
Total Budget
6.540
S:\Clients\S\San Rafael\2006 - SW\Proposal\Fee Estimate - San Rafael b.xls
From: Jurly Marshall At: CCI f-inancial a Insurance services t-aXILJ: I o: Kegg "novlcn
ua>e: i u/u.&uuu uL:4t7 vivl rage: 4 or u
ACORD CERTIFICATE OF LIABILITY INSURANCE OPID DATE(MM/DD/YYYY)
�O 10/02/06
}j�I
PRODUCER THIS CERTIFICATE IS ISSUED AS A 'I� INFORMATION
California Coastal insurance ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
License #0381524 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
2262 Camino Ramon PO Bnx 5n76 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
San Ramon CA 94583-1328
Phone:925-866-7050 Fax:925-866-8275
AFFORDING COVERAGE
NAIC9
INSURED
IINSURERS
INSURER A: Hartford insurance Company 22357
INSURER D: Houston Casualty Company
Kathleen Hilton, Farnkop£, Hobson
INSURER C: Preferred Employers
2175 N California Ste 990
INSURER D:
Walnut Creek CA 94596
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY 14LOUIRLMLN1. 1LRM OR CONDI IION OF ANY CON IRAC I OR 01HEH UOCUMENI WI IH HESPECI IU WHICH IHIS CEHI IFIC:AIE MAY HE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS
I"K Nuu'YULILY CI'tcL I IVC ruuLr okruwnury
LTR INSRd TYPE OF INSURANCE POLICY NUMBER DATE (MM/DD/YY) DATE (MM/DD/YY)
LIMBS
GENERAL LIABILITY
EACH OCCURRENCE
$ 1,000,000
A X X COMMERCIAL GENERAL LIAOILITY 57SBAGB6653
12/1 v
5/05 12/15/06 IPREMISESnrvwociv (EaKooccuv�cueence)
3300,000
ICLAIMS MADE F__] OCCUR
I MED EXP (Any one person)
$ 10,()00
PERSONAL & ADV INJURY
$ :L,000,000
GENERAL AGGREGATE
;2,000,000
GEN'L AGGREGATE LIMIT APPLES PER
Ij PRODUCTS - COMP/OP AGG
$ 2,000,000
POLICY F-1 JECT n LOC
AUTOMOBILE LIABILITY
iA4YAUTO
COMBINED SINGLE LIMIT
$ 1,000 0 0 0
A 57SBAGB6653
12/15/05 12/15/06
(Eeaccident)
ALL OWNED AUTOS
BODILY INJURY
I
3
SCHEDULED AUTOS
(Per person)
X I IIRCD AUTOS
BODILY INJURY
$
X NON -OWNED AUTOS
(Per accident)
_
PROPFRTY nAMAG7F
S
(Per accident)
GARAGE LIABILITY
I AUTO ONLY - EA ACCIDENT
$
ANY AU 10
I OTHER THAN EA ALC
AUTO ONLY: AGG
!�
3
EXCESS/UMBRELLA LIABILITY
I CACI I OCCURRENCE
3 2,000,000
A 7 OCCUR EICLAIMS MADE 57SELAGB6653
12/15/05 12/15/06 I AGGREGATE
s2,000,000
I
3
DCDUCTIOLC
I
3
X RETENTION $ 10000
I
$
WORKERS COMPENSATION AND
Ij X ITORY LIMIT." I I"IT
EMPLOYERS' LIABILITY
C WKN1121425
09/06/06 09/06/07 E.L. EACH ACCIDENT
$ 1000000.
ANY f'ROf'RIETOR/f'ARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?
E.L. DISEASE - EA EMPLOYEE
$3.000000.
If yes, describe under
SPECIAL PROVISIONS below
I E.L. DISEASE - POLICY LIM[ 1
$1000000.
OTHER
B Professional Liab H70613397
06/01/06 06/01/07
Aggregate
2,000,000
Occur.
2,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
The City of San Rafael and its officers, agents,
employees and volunteers
are included as additional insured per attached policy endorsement.
*10 Day Notice for Non -Payment of Premium
CERTIFICATE HOLDER
CANCELLATION
SANRAFC
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL
30* DAYS WRITTEN
City of San Rafael
NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL
Attn : City Manager
IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
P.O. Box 151560
San Rafael CA 94915
REPRESENTATIVES.
AUTHORIZED RJPRESENTAYVE
ACORD 25 (2001/08)
(DACORD
CORPORATION 1988
From: Judy Marshall At: CCI Financial & Insurance'Jervices I-axl U: I o: rcegg renoviun uuLc, i rin Y ayc..J Ulu
IMPORTANT
If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
ACORD 25 (2001/08)
From: Judy Marshall At: U(;I Hnanclal & Insurance Services I -axle: I o: Megg F'enoVlch
Date: 10/Z/PUUG 02:46 PM Page: 6 of G
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - DESIGNATED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the following: 57SBAGB6653
BUSINESS LIABILITY COVERAGE FORM
C. Who is an insured in the BUSINESS LIABILITY
COVERAGE FORM is amended to include as an
Insured the person or organization shown in the
Declarations but only with respect to liability arising
out of the operations of the named insured.
For losses covered under the BUSINESS LIABILITY
COVERAGE of this policy this insurance is primary
to other valid and collectible Insurance which Is
available to the person or organization shown In the
Declarations as an Additional Insured.
The City of San Rafael, its officers, agents, employees and volunteers
Form SS 04 49 05 93 Printed in U.S.A. (NS)
Copyright, Hartford Fire Insurance Company, 1993