HomeMy WebLinkAboutCM Refuse Rate Review; HF&H 2013CITY 1°F � Agenda Item No: 6.a
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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,
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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.
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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
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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.
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Managing Tomorrow's Resources Today
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:
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
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CITY OF SAN RAFAEL
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
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)