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Home My WebLink AboutCM Refuse Rate Review; HF&H 2013CITY 1°F � Agenda Item No: 6.a n. - Meeting Date: February 4, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: CITY MANAGER Prepared by: Cory Bytof City Manager Approvall I, i tl' -11- Sustainability and Volunteer Program Coordinator SUBJECT: 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 RECOMMENDATION: Adopt Resolution. BACKGROUND: A number of local agencies within Marin County have franchise agreements with Marin Sanitary Service (MSS) to provide refuse collection and recycling services to residential and commercial customers. The agencies with similar contracts with MSS are the cities of San Rafael and Larkspur, the Town of Ross, Ross Valley South (Marin County), and the Las Gallinas Valley Sanitary District. Due to common interests and common contracts, these agencies have formed a Franchisors' Group. In June 2012, the Franchisors' Group designated a subcommittee, made up of staff from the City of San Rafael and the County of Marin, to meet with MSS and negotiate amendments to the Franchise Agreement. The subcommittee, with the assistance of HF&H Consultants, LLC ("HF&H"), met with MSS numerous times from June through August 2012 which led to a Second Amendment to the "Amendment and Restatement of Collection Agreement of the City of San Rafael with Marin Sanitary Service," approved by Council on October 1, 2012. Highlights of that work includes: transparency with regard to costs and revenues, the sharing of recycling revenues and the establishment of a new recycling rate stabilization fund, and the requirement for various zero waste reporting and planning. FOR CITY CLERK ONLY Fite No.: Council Meeting: f Disposition: 1 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 Although the rate methodology work was completed, the Subcommittee and participants in the process acknowledged the need to revisit the rate structure and determine if and how MSS could begin to account for costs for each service rather than continue to bill solely on the basis of the trash service, or "black can". This is due to the fact that the overall industry is moving from "bringing garbage to the landfill" to "resource hauling" including transport to recyclers and re - users, now making the green, blue, and brown recycling cans a considerable share of MSS' operations. This rate structure work is meant to address those considerations and was deferred to 2013 by the Franchisors' Group and other participants in the process, acknowledging the significant public outreach, assessment, and education that would need to be performed before consideration of a new approach. In November, HF&H submitted a Proposal to Provide Rate Structure and Implementation Assistance, which this report addresses. As noted in the October 1, 2012 Staff Report, HF&H is the preferred consultant to continue the work due to the extensive work they did for the Franchisors' Group on the rate methodology. ANALYSIS: During the rate methodology work, the Franchisors' Group, in conjunction with MSS and HF&H, assembled an implementation plan to lay out future steps should the governing bodies of the Franchisors' Group entities be interested in pursuing new rate structures. This plan, incorporated in the HF&H proposal, which is included as Exhibit A of the attached Resolution, includes the following implementation measures: • Following a survey of other agencies to determine best practices, an appropriate description of the approach would need to be created to begin the public discussion of the rate structure. • Implementation and transition issues would need to be identified. Procedures and policies would need to be adopted to address them. • The draft rate structure would need to be revised in accordance with the resolution of the implementation and transition issues. • Effective presentations would need to be prepared which focus on the economic benefits to customers and the environmental benefits from such an approach. • In order to gain experience with the fewest possible number of customers and learning from the experience before expanding it more broadly, a customer group would need to be selected (e.g., commercial vs. residential or a smaller jurisdiction vs. system wide) for initial implementation. • Once selected, outreach tools would need to be developed. These could include handouts and on-line calculators. • Once the initial customer group is experienced with the new rate structure, the Franchisors' Group and MSS could identify the lessons learned and 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. HFH submitted a proposal dated November 21, 2012 setting forth a scope of services for the implementation plan for the Franchisors' Group, and a fee estimate for that work for an amount not to exceed $50,592. The proposal includes four meetings with the Franchisors' Group, two SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 meetings with our Climate Change Action Plan community group, three focus group meetings, and one presentation to the governing body of each of the five member agencies. Once this work is complete, the City Council is under no obligation to implement rate structure changes, but the work would provide the expertise to do so should the governing bodies of one or more of the Franchisors' Group wish to do so. The attached Resolution would authorize the City Manager to execute an agreement with HFH on the terms set forth in HFH's proposal dated November 21, 2012, in a form to be approved by the City Attorney. FISCAL IMPACT: The proposal from HFH for the detailed review is a not to exceed amount of $50,592. The cost for this contract is passed through to MSS and is not an expenditure of either the City of San Rafael or the other members of the Franchisors' Group. All participating agencies have received a copy if this agreement and are aware of the scope of work and project costs. The contract payments are absorbed into MSS operating expenses which are the basis for the annual refuse collection rates, addressed in another Staff Report on this Agenda. ACTION REQUIRED: Adopt the resolution as presented. ATTACHMENTS: Attachment A: Resolution with Exhibit A attached 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. 1, 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 ESTHER C. BEIRNE, City Clerk FOR: Implementation Work on Marin Sanitary Service's 2013 Rate Structure This Agreement is made and entered into this :5`14 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: 1. 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. I-ViT411101 7, ORIU14 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. WINNK-�Mll = 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. 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. I 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. 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 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. V 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 • LLC 201 North Civic Drive, Suite 23* I 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 I 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. 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 6 City Managef ATTEST: City Clerk FA J -1 aNX MkJ t 'lt City Attorney CONTRACTOR By: Name: tr-JaLvo- I I Title: V I LC J(es (,JeAt 100011: 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 Subject: Proposal to Provide Rate Structure and Implementation Assistance Dear Mr. Schutz: sources Today 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. Mr. Jim Schutz November 21, 2012 Page 2 of 4 Managing Tomorrow's Resources Today • 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. 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 Project 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. Mr. Jim Schutz November 21, 2012 Page 3 of 4 Task 2: Obtain and Analyze Cost, Rate and Customer Account Data HF&H will obtain from MSS and review the following data. sources Today • 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 Implementation 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. Mr. Jim Schutz November 21, 2012 Page 4 of 4 sources Today • 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. 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. 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. 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 -'-7f�� 412 n*� 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, CLC Kim Erwin, Office Manager, HF&H Consultants, LLC \\ I . , Ea "C c o M 9 �(\)} \ \\�> 0 ,_!/: z -a 'b \((f c E \\\\\ \t . , Ea "C c o M 9 O CL O E CL 0) E % 0 E :E U W W 0 LL E u. C CL 0 > O cc cc E .2 .2 0 z; > E 4= -2 E 2 c- E E t E o -C 0 a 0 a C c .2 -@ — —1 0 W , w > > , .3 2 o 2: 2 0 O. c 0 2 E 2 E m of Cc E cc 2 t & TE > a. I u JF 2 2 2 10 E E t 2 D E LL O cc cc .2 .2 0 z; > E 4= -2 E 2 c- E t E o -C 0 a 0 a C c .2 -@ — —1 0 W , w > > , .3 2 o 2: 2 0 O. c 0 2 E 2 E m of O 7; cc .2 .2 0 z; > E 4= -2 E 2 c- E t E o -C 0 a 0 a C c .2 -@ — —1 0 W , w > > , .3 2 o 2: 2 0 O. c 0 2 E 2 E . cc Cc E cc 2 t & TE > a. JF 2 2 2 O 7; cc .2 .2 0 z; a 0 a C c .2 -@ — —1 0 W , w > > , .3 2 o 2: 2 0 O. E 2 E Cc cc 2 t EXHIBIT A All, .r^'•r-ti. res r CERTIFICATE OF LIABILITY INSURANCE F DATE(MMIDWYYYY) 11/21/12 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. 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). PRODUCER 925-866-7050 CONTACT CGI Financial & Ins. Solutions NAME_ License #0381524 925-866-8275 PHONE FAX Extl: E P. O. Box 5076 MAILo San Ramon, CA 94583-1328 ADDRESS: CCIFIS ._. INSURER(S) AFFORDING COVERAGE NAIC If ..._. __. INSURER A: Hartford Insurance Company `22357 INSURED HF&H Consultants, LLC 201 Notch CIVIC Drive Ste 230 INSURER B : American Casualty Co. of ;20427 Walnut Creek, CA 94596 Houston Casualty Company ` --- INSURER C PERSONAL & ADV INJURY $ INSURER D: INSURERE: 4,000,00 INSURER F: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE KCVIWUN NUMUtK: INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED WHICH THIS HEREIN IS SUBJECT TO ALL EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID THE TERMS, CLAIMS. ..POLICY EXP._ -- LTR TYPE OF INSURANCE POLICY NUMBER MMlDD MMIDD/YYYY LIMITS 'GENERAL LIABILITY : -- - A X _ EACH OCCURRENCE $ 2,000,000 COMMERCIAL GENERAL LIABILITY X 57SBAGB6653 12/15/12 12/15/13 DAMAGE TO RENTED $__ 1,000,00 CLAIMS -MADE X ;OCCUR i_ PREMISES (Ea occurrence) MED EXP (Any one person) $ 10,00 ' - -- -- ---- -- '� PERSONAL & ADV INJURY $ 2,000,000 GENERAL AGGREGATE $... 4,000,00 GEN'L AGGREGATE OMIT APPLIES PER: PRODUCTS - COMPIOP AGO $ 4,000,00 PRO X POLICY - :LOC-_ _... AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT A (Ea accident) $ 2,000,00 ANY AUTO 57SBAGB6653 12/15/12 12/15/13 -- -' BODILY INJURY (Per person) $ ALL OWNED SCHEDULED-- ---- _ AUTOS _ AUTOS i BODILY INJURY (Per accident) $ _ X ! HIRED AUTOS X AUOTOSWNEONN PROPERTY DAMAGE - $ ,._(Per accident) J( UMBRELLA LIAR X 'OCCUR -' A Excess ua6 EACH OCCURRENCE 00 eLAIMs-MADE 57SBAGB6653 12/15112 12/15/13 AGGREGATE 00 DED X RETENTION$ 10,000 ---- ..... _WORKERS COMPENSATION EMPLOYERS' LIABILITY WC STATU- OTH-AND X OFFICERIMEMBER EXCLUDANY ED? ECUTIVE Y N / A ( WC412259330 09/06/12 09/06/13 TORY_LIMITS ER_B EL EACH ACCIDENT 0(Mandatory in yes, descrbe under andE L. DISEASE - EA EMPLOYEE0If OF OPERATIONS below ____.DESCRIPTION EL DISEASE -POLICY LIMIT 1,3 0C Professional Liab H7121697706/01/12 06/01/13 ;Occur/Agg 00Retro Date: 8/1/89Retention00 DESCRIPTION OF OPERATIONS 1 LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) This insurance shall be primary with respect to insurance any or coverage maintained by City and shall not call upon City's insurance for coverage or contribution. The city and their officers, agents, employees and volunteers are included as Additional Insured under the General Liability policy per the attached. [`CDTiCi!'ATc LtAi ncn SANRAFC City of San Rafael Attn: Stephanie Lovette P.O. Box 151560 San Rafael, CA 94915 Lou. I111110 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE O 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD Named Insured: HF&H Consultants,LLC Policy Number: 57SBAGB6653 Policy Term: 12/15/12- 12/15/13 (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Real Estate Manager Any person (other than your "employee" or "volunteer worker"), or any organization while acting as your real estate manager. c. Temporary Custodians Of Your Property Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Legal Representative If You Die Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this insurance. e. Unnamed Subsidiary Any subsidiary and subsidiary thereof, of yours which is a legally incorporated entity of which you own a financial interest of more than 50% of the voting stock on the effective date of this Coverage Part. The insurance afforded herein for any subsidiary not shown in the Declarations as a named insured does not apply to injury or damage with respect to which an insured under this insurance is also an insured under another policy or would be an insured under such policy but for its termination or upon the exhaustion of its limits of insurance. 3. Newly Acquired Or Formed Organization Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain financial interest of more than 50% of the voting stock, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and BUSINESS LIABILITY COVERAGE FORM b. Coverage under this provision does not apply to: (1) "Bodily injury" or "property damage" that occurred; or (2) "Personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. 4. Operator Of Mobile Equipment With respect to "mobile equipment' registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 5. Operator of Nonowned Watercraft With respect to watercraft you do not own that is less than 51 feet long and is not being used to carry persons for a charge, any person is an insured while operating such watercraft with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the watercraft, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person operating the watercraft; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. Written Contract, Written Agreement Or Permit The person(s) or organization(s) identified in Paragraphs a. through f. below are additional insureds when you have agreed, in a written Form SS 00 08 04 05 Page 11 of 24 �BUSINESS LIABILITY COVERAGE FORM Named Insured: 8F&8 Co^eulca"to.CLC Policy Number: 5730&GB6653 Policy Term: 12/15/12- 12/15/13 contract, written agreement orbecause ofm (e)Any failure to make such permit issued by a state or political inapeobona, adjuotmonts, bodu or oubdiviuion, that such person or organization servicing as the vendor has be added as an additional insured on your agreed to make or normally po|ioy, provided the injury or damage 000umo undertakes to make in the usual subsequent to the execution of the contract or course of buoineoe, in connection agreement, orthe issuance ofthe permit. with the distribution orsale ofthe A person or organization is an additional P»»dudo; insured under this provision only for that UU DemonstxoUon, inoha||ation, period of time required by the oontns«t, servicing or repair opanaUono, agreement orpermit. except such operations performed However, nosuch person ororganization isan at the vendor's pvom/a*u in additional insured under this provision ifsuch connection with the aa/a of the person or organization is included an an product; additional insured by an endorsement issued (g) products whioh, after distribution by us and made a part of this Coverage Part, or sale by you, have been labeled including all persons or organizations added or relabeled or used as a as additional insureds under the apa«|fio container, part uringredient cfany additional insured coverage grants in Section other thing or substance by or for F.—Optional Additional Insured Coverages. the vendor; ur o. Vendors (h) "Bodily injury" or ''property Any pemon(a)ororganizadon(o)(referred bo damage" arising out of the sole be/mw as vendur), but only with respect to »*Q|iQe»oe of the vendor for its "bodily injury" or "property damage.. arising «w» acts or omissions or those of out of"your products" which are distributed its employees or anyone */oo or ocdd in the regular course of the vendor's acting on its behalf. However, this business and only if this Coverage pert exclusion does not apply to: provides coverage for "bodily injury" or (i) The exceptions contained in "property damage" included within the Subparagraphs (d)or(f);or "produdo-oompletedoperations hazand" (ii) Such inspections, adjustments, (1) The insurance afforded to the vendor tests orservicing aathe vendor is subject to the following additional has agreed tnmake ornormally exclusions: undertakes bmake inthe usual This insurance does not apply to: course of buoineon, in (a) "Bodily injury" or "property connection with the distribution orsale ofthe products. damage" for which the vendor is obligated b/ pay damages by (2) This insurance does not apply to any reason of the assumption of insured person or organization from |iabi|ityinaountna/�L or agreement. ««h»my»«have uuquirodauohpn�dudo. This exclusion does not apply h/ or any ingredient, part or container, liability for damages that the entering into, accompanying or vendor would have inthe absence containinQeuohpnodu�o� ofthe contract oragreement; b. Lessors 0fEquipment (b) Any express warranty (1) Any person or organization from unauthorized byyou; whom you lease equipment; but only (c) Any physical or chemical change with respect hotheir liability for "bodily in the product made intentionally "property damage'' or "personal "personal by�havendoc and advertising injury" (d) Repackaging, except when oouaad, in whole or in pertby your mminhonano*, operation or' use of unpacked solely for the purpose of equipment leased to you by such inopeobon, demonobation, baobng, person ororganization. or the substitution of parts under inmbnobono from the manufactuvar, and then repackaged in the original container; Page 12 of 24 Form SS 00 08 04 05 Named Insured: HF&H Consultants,LLC Policy Number: 57SBAGB6653 Policy Term: 12/15/12- 12/15/13 (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. Lessors Of Land Or Premises (1) Any person or organization from whom you lease land or premises, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land or premises leased to you. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) Any 'occurrence" which takes place after you cease to lease that I land or be a tenant in that premises; or (b) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. Id. Architects, Engineers Or Surveyors (1) Any architect, engineer, or surveyor, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (a) In connection with your premises; I or (b) In the performance of your ongoing operations performed by you or on your behalf. (2) With respect to the insurance afforded to these additional insureds, the following additional exclusion applies: This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or the failure to render any professional services by or for you, including: (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. BUSINESS LIABILITY COVERAGE FORM e. Permits Issued By State Or Political Subdivisions (1) Any state or political subdivision, but only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) 'Bodily injury", "property damage" or "personal and advertising injuryarising out of operations performed for the state or municipality; or (b) 'Bodily injury" or "property damage" included within the "products - completed operations hazard". f. Any Other Party (1) Any other person or organization who is not an insured under Paragraphs a. through e. above, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (a) In the performance of your ongoing operations; (b) In connection with your premises owned by or rented to you; or (c) In connection with "your work" and included within the "products - completed operations hazard", but only if (i) The written contract or written agreement requires you to provide such coverage to such additional insured; and (ii) This Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products - completed operations hazard". (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: "Bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: Form SS 00 08 04 05 Page 13 of 24 BUSINESS LIABILITY COVERAGE FORM (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. D. LIABILITY AND MEDICAL EXPENSES LIMITS OF INSURANCE 1. The Most We Will Pay The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. Aggregate Limits The most we will pay for: a. Damages because of "bodily injury" and "property damage" included in the "products -completed operations hazard" is the Products -Completed Operations Aggregate Limit shown in the Declarations. b. Damages because of all other "bodily injury", "property damage" or "personal and advertising injury", including medical expenses, is the General Aggregate Limit shown in the Declarations. This General Aggregate Limit applies separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway or right-of-way of a railroad. Named Insured: HF&H Consultants,LLC Policy Number: 57SBAGB6653 Policy Term: 12/15/12- 12/15/13 This General Aggregate limit does not apply to "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of fire, lightning or explosion. 3. Each Occurrence Limit Subject to 2.a. or 2.b above, whichever applies, the most we will pay for the sum of all damages because of all "bodily injury", "property damage" and medical expenses arising out of any one 'occurrence" is the Liability and Medical Expenses Limit shown in the Declarations. The most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses Limit shown in the Declarations. 4. Personal And Advertising Injury Limit Subject to 2.b. above, the most we will pay for the sum of all damages because of all "personal and advertising injury" sustained by any one person or organization is the Personal and Advertising Injury Limit shown in the Declarations. 5. Damage To Premises Rented To You Limit The Damage To Premises Rented To You Limit is the most we will pay under Business Liability Coverage for damages because of "property damage" to any one premises, while rented to you, or in the case of damage by fire, lightning or explosion, while rented to you or temporarily occupied by you with permission of the owner. In the case of damage by fire, lightning or explosion, the Damage to Premises Rented To You Limit applies to all damage proximately caused by the same event, whether such damage results from fire, lightning or explosion or any combination of these. 6. How Limits Apply To Additional Insureds The most we will pay on behalf of a person or organization who is an additional insured under this Coverage Part is the lesser of: a. The limits of insurance specified in a written contract, written agreement or permit issued by a state or political subdivision; or b. The Limits of Insurance shown in the Declarations. Such amount shall be a part of and not in addition to the Limits of Insurance shown in the Declarations and described in this Section. Page 14 of 24 Form SS 00 08 04 05 Named Insured: HF&H Consultants, LLC Policy Number: 57SBAGB6653 Policy Term: 12/15/12 - 12/15/13 (6) When You Are Added As An Additional Insured To Other Insurance That is other insurance available to you covering liability for damages arising out of the premises or operations, or products and completed operations, for which you have been added as an additional insured by that insurance; or (7) When You Add Others As An Additional Insured To This Insurance That is other insurance available to an additional insured. However, the following provisions apply to other insurance available to any person or organization who is an additional insured under this Coverage Part: (a) Primary Insurance When Required By Contract This insurance is primary if you have agreed in a written contract, written agreement or permit that this insurance be primary. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. (b) Primary And Non -Contributory To Other Insurance When Required By Contract If you have agreed in a written contract, written agreement or permit that this insurance is primary and non-contributory with the additional insured's own insurance, this insurance is primary and we will not seek contribution from that other insurance. Paragraphs (a) and (b) do not apply to other insurance to which the additional insured has been added as an additional insured. When this insurance is excess, we will have no duty under this Coverage Part to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. BUSINESS LIABILITY COVERAGE FORM When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self- insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method Of Sharing If all the other insurance permits contribution by equal shares, we will follow this method also. Under this approach, each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. Transfer Of Rights Of Recovery Against Others To Us a. Transfer Of Rights Of Recovery If the insured has rights to recover all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. This condition does not apply to Medical Expenses Coverage. b. Waiver Of Rights Of Recovery (Waiver Of Subrogation) If the insured has waived any rights of recovery against any person or organization for all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, we also waive that right, provided the insured waived their rights of recovery against such person or organization in a contract, agreement or permit that was executed prior to the injury or damage. Form SS 00 08 04 05 Page 17 of 24 PROFESSIONAL SERVICES AGREEMENT/CONTRACT COMPLETION CHECKLIST AND ROUTING SLIP Below is the process for getting your professional services agreements/contracts finalized and executed. Please attach this "Completion Checklist and Routing Slip" to the front of your contract as you circulate it for review and signatures. Please use this form for all professional services agreements/contracts (not just those requiring City Council approval). This process should occur in the order presented below. Step Responsible Description Completion Department - Date I City Attorney Review, revise, and comment on draft LG 2/25/13 agreement. 2 Contracting Department Forward final agreement to contractor for their signature. Obtain at least two signed originals from contractor. 3 Contracting Department Agendize contractor -signed agreement for Council approval, if Council approval q, necessary (as defined by City Attorney/City "r rIA Ordinance*). 4 City Attorney Review and approve form of agreement; bonds, and insurance certificates and endorsements. 5 City Manager I Mayor or Agreement executed by Council authorized Department Head official. —, P, ivi 6 City Clerk City Clerk attests signatures, retains original 10 agreement and forwards copies to the W1 contracting department. i To be completed by Contracting Department: Project Manager: Cory Bytof Project Name: HFH Rate Structure Contract Agendized for City Council Meeting of (if necessary): Approve If you have questions on this process, please contact the City Attorney's Office at 485-3080. * Council approval is required if contract is over $20,000 on a cumulative basis. Al!unwWOD,?AOW #A, iAqm Ino puij -'oD a:)npaj dlaq 01 Ueld aP!mAI!D SI! Olu! 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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 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 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. 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 Project 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. Managing Tomorrow's Resources Today Mr. Jim Schutz November 21, 2012 Page 3 of 4 Task 2: Obtain and Analyze 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 Implementation 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 CLAP Committee, 3 focus group meetings, and S member agency council meetings. 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. 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. 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. 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 4tl; W,6210-� 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 a s v E U op C p"gogg v `o m E m v c c v y N m of i9 Z K ^L C y L L L i7 is u U d N N a L N `2 W !� y h 01 W 1p l°iD N O � F 00 0 0 oe � v c o0 �,y.. N W W ti S O N ei `a o ro m ° y° `° Y � v E m o �` Y no cLD ro N v WW E m 3 v c � ' m Y m > n •L• u O v c E o E u m o c aci c: a, r a S c c E o N 6 fy � N m N L d U c R y .y Q c d o E 6 m a a d E N 6 E V � � G W 1p C N U. 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SRRA / SRCC AGENDA ITEM NO. 6.a DATE OF MEETING: 2/4/2013 FROM: Cory Bytof DEPARTMENT: for City Manager's Office DATE: 1/28/2013 TITLE OF DOCUMENT: 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 VALLE ANITARY DISTRICT, AND MARIN COUNTY (INCLUDING ROSS VALLEY SOUTH AND O AREAiS -MARIN COUNTY) WITH COSTS TO BE PAID BY MARIN SANITARY SERVICES (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) s , r MIS City Attorney (signature)