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HomeMy WebLinkAboutItem 7.1 Solid Waste Agmt CITY CLERK File#J IE IIOIO-I IO AGENDA STATEMENT CITY COUNCIL MEETING DATE:April 6, 2004 SUBJECT: Solid Waste Franchise Consultant Services Agreement Report Prepared By: Jason Behrmann, Administrative Analyst ATTACHMENTS: 1) R3 Consulting Group Qualifications 2) Proposed Project Schedule 3) Resolution Approving Agreement with R3 Consulting Group 4) Budget Change Form RECOMMENDATION~.) .tx/ 1) Adopt Resolution ~, - 2) Approve Budget Change in the amount of $26,650 FINANCIAL STATEMENT: The total cost of the agreement is for an amount not to exceed $79,950. It is estimated that one third of this amount will be spent in Fiscal Year 2003-2004, requiring a Budget Change in the amount of $26,650 from Unappropriated General Fund Reserves. The remaining amount will be included in the Fiscal Year 2004-2005 Budget. The City will receive 100% reimbursement of these costs from the selected hauler. DESCRIPTION: At the City Council meeting on January 6, 2004, the City Council authorized Staff to circulate a Request For Qualifications (RFQ) to firms which provide solid waste consulting services. The focus of the scope of work is to assist the City in preparing a Request For Proposal and negotiating a franchise agreement for solid waste and recycling collection and disposal. The current agreement with Waste Management will expire on June 30, 2005. Staff is recommending the selection orR3 consulting Group to assist with this process. CONSULTANT SELECTION: Staff distributed the Consultant RFQ to five firms that have a background with solid waste issues. The City received responses from four firms, which have a variety of consulting experience related to municipal solid waste procurements. The four firms are: R3 Consulting Group, Hilton Farnkopf & Hobson (HF&H), Brown Vence & Associates (BVA) and Environmental Planning Consultants. Environmental Planning Consultants was excluded from consideration early in the process due to its limited resources and experience compared to the other three firms. City Staff conducted individual interviews with representatives from R3, HF&H and BVA in order to clarify information submitted in each proposal. COPIES TO: Ric Hutchinson, R3 Consulting Group ITEM NO. ~,t H/cc-forms/agdastmt.doc While the consulting firms and their proposals have many similarities, Staffbelieves that the proposal presented by R3 Consulting Group provides the best overall approach and value to the City. Staff therefore recommends R3 Consulting Group for this project. As shown in Attachment 1, R3 Consulting Group has extensive experience in assisting public agencies with the procurement of solid waste services. The firm exclusively represents public agencies, which avoids any appearance of a conflict of interest. One of the primary concerns with BVA was that they provide consulting services to public agencies as well as the waste industry. The cost proposal submitted by R3 was also a factor as it was more than $30,000 less than the proposal received by HF&H. In addition, Staff contacted the Cities of San Jose and Santa Rosa whose recent procurement projects were managed by R3's proposed project manager and received favorable recommendations. These cumulative factors support the recommendation to select R3 Consulting Group for this project. PROJECT APPROACH: The project schedule (Attachment 2) anticipates awarding the waste Franchise Agreement in December 2004, allowing sufficient time for the selected hauler to prepare for a contract start date of July 1, 2005. Exhibit A of the Consulting Services Agreement (Attachment 3) describes the proposed approach for the project. The project tasks are summarized below: Task 1: Determine City's Collection and Disposal Needs - This task will consist of reviewing existing solid waste documents, evaluating current and potential future programs and developing a "short list" of program alternatives for presentation at Council Workshops. In addition to the consultant team, it is anticipated that this task will involve meetings with Staff from the City Manager's Office, City Attorney's Office and the Alameda County Waste Management Authority's franchise assistance staff. Task 2: Community Outreach Program- The primary objectives of the'community outreach program is to inform residents and businesses about the procurement process and to receive input on the proposed program options. R3 anticipates working with City Staff, City Council, residents, homeowners associations, business groups and the media to provide opportunities for community input. R3 proposes to initially conduct one or more City Council workshop(s) during the development of the Request for Proposal to discuss program and service options. Additional public outreach will be developed as needed during the process. Task 3: Prepare, Issue and Evaluate Request for Proposals (RFP's)- This phase includes the development of the RFP based on information generated from Task 1 and 2. The RFP will specify minimum requirements and qualifications and will require contractors to submit work plans that specify how they will transition to new services, achieve diversion requirements, implement customer service programs, and promote public education activities. In an effort to procure the best combination of services at the best price, the City will evaluate separate versus combined collection and disposal contracts. R3 recommends that the City request cost proposals for both scenarios in the RFP document, thereby allowing the evaluation team and City Council to select the alternative that offers the best deal to the City Separate sections of the RFP will include instructions specifying the rules of the negotiation process for the contractors and the City, the format and submittal of responses, proposal cost and service forms, and the method for evaluating responses. In addition, R3 recommends developing and issuing the draft Franchise Agreement as part of the RFP package. This'significantly reduces the time and cost of negotiations, and contractually links the requested services to proposed costs as part of the evaluation process. Contractors will be required to specify any exceptions and provide language for any changes they propose as part of their proposal package. The RFP package will be presented to Council for approval prior to release. Finally, R3 will assist the City in evaluating the proposals in response to the RFP. Task 4: Negotiate with Top Ranked Contractor(s), and Finalize New Franchise Agreement for City Council Approval- R3 will participate in Franchise Agreement negotiations with the top ranked contractor(s). Negotiations will focus on clarifying the contractor's service and cost proposals, finalizing contractual language, and ensuring that the proposed collection and disposal rates are appropriate given the level of requested service. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution approving the Consulting Services Agreement with R3 Consulting Group and approve the Budget Change in the amount of $26,650. Section A Firm Information Firm Qualifications R3 Consulting Group, Inc. (,'R3") specializes in management consulting services for solid waste and water / wastewater utilities. We routinely provide a range of services to our municipal clients, including competitive procurement of services, negotiation, implementation and monitoring of contracts and franchise agreements, financial and technical analysis of programmatic and policy alternatives, and performance assessments, management reviews and compliance audits. The Project Manager for the City of Dublin Solid Waste Procurement Project is listed below. Mr. Ric Hutchinson, Principal and Project Manager R3 Consulting GrOup 4811 Chippendale Drive, Suite 902 Sacramento, CA 95841 Phone: (916) 576-0308 Fax: (916) 331-9600 E-mail: rhutchinson@r3cgi.com Resources, Responsibility and Respect - these are the guiding principles of R3 Consulting Group. Our mission is to assist municipal clients identify challenges, evaluate alternatives, and implement cost-effective, environmentally sound and "community-friendly" solutions. For more than 30 years, R3 team members have assisted municipal clients in the implementation of a variety of programs, services, and facilities. Firm R3 provides the following services to our municipal clients: Qualifications · Procurement of refuse collection, disposal and recycling services; · Development, negotiation, execution and monitoring of contracts and franchise agreements; · Rate audits, financial analyses, and cost-of-service studies; · Performance reviews, management audits and benchmarking of solid waste operations; · Community outreach and public education workshops, forums, campaigns and surveys; · Preparation of AB 939 planning documents and Regional Agency Formation Agreements. R3 Provides Solutions We believe that preparing clear, comprehensive procurement documents and conducting an objective and fair procurement process will result in lower customer rates and a higher level of service. As a result of a procurement that R3 team members recently completed, one California community will receive an additional $350,000 in annual franchise fee payments, customer rates were reduced by over 20 percent, and collection services were dramatically improved. Projects that R3 staff have completed with issues similar to those requested by the City are listed in the table on page A - 3. This is followed by descriptions of selected projects. Conflict of interest R3 understands the sensitive nature of conducting competitive procurement projects for public agencies. We are strongly committed to providing our clients with unbiased opinions and recommendations. Accordingly, R3 only provides services to public agencies. R3 does not currently have (or historically had) any contractual or employment agreement or relationshipofanykindwithanyprivatewastehaulingcompany. Section A - 2 Project Summary Table Firm Qualifications The following summary table cross-references the services that R3 team members have provided for public agencies over the past 30 years. This is followed by project descriptions of selected projects. ~i~ of Albuquerque, City°fBradbuw'CA I ¢"~~~ City°f Citrus I Section A - 3 Qualifications ~¢~" ~"'~'~'~" ~'%~' ~'~ ~,~ ....... Douglas Count, NV C,, of DuaAe, CA 47 ~l Grove, CA CACity of Los Angeles, ~&~~~ ¢ Mari~pa Count, ~ ~~~ ¢~ ~~ Ci~ofMonrovia, CA ¢ ~ / ¢ I [ ¢ ¢ ~ I ¢ I Section A - 4 Firm Qualifications Monterey County,' CA City of Novato, CA Palm Beach County, FL City of Rancho Palos Verdes, CA City of Rancho Cordova, CA Puerto Rico Infrastructure Finance Authority San Bernardino County, CA ~ Section A- 5 Firm Qualifications City of San Gabriel, CA City of San Rafael, ./ CA City of Scottsdale, AZ ¢' Seminole County, FL State of Arizona '/ Town Of Windsor, CA State of New Mexico Guam EPA ¢' Section A - 6 Section B The R3 Project Team Staff The R3 project team has provided management consulting Qualifications services for more than 200 clients, representing more than 150 jurisdictions throughout the United States. Our project team members all have experience with similar engagements and will The R3 project team provide the City.with a unique set of skills and experience, routinely provides the including: following services to · procurement, negotiation, implementation and monitoring municipal clients: of solid waste contracts and franchise agreements; · financial reviews, rate analyses and cost-of-service · Procurement and studies; negotiation of contracts · contract compliance reviews,' performance enhancement and franchise audits and contract administration services; agreements · community workshops and forums to encourage resident · Service rate audits and participation and feedback throughout all project phases financial analyses from program design to contract, execution and · Contract administration implementation, and compliance An organizational chart, biographical summaries, and estimated reviews level of effort are listed below. This is followed by full resumes.· Hands-on operations and program PropoSed Project Organization performance reviews Section B- 1 Project Team Biographical Summaries Ric Hutchinson - Project Manager Mr. Hutchinson is a Florida Certified Public Accountant with more than 30 years of experience in the fields of accounting, auditing, and financial and management consulting for state and local governments. He has an extensive background in rate audits and financial analysis, procurement of solid waste collection and recycling services, and preparation of solid waste ordinances. Mr. Hutchinson currently is managing the procurement projects for the cities of Rancho Cordova and Citrus Heights, CA. Mr. Hutchinson holds a Bachelor of Arts Degree in Accounting. Mr. Hutchinson will serve as Project Manager and Task Leader on all project tasks. Richard Tagore-Erwin Senior Analyst Mr. Tagore-Erwin's project work encompasses all aspects of solid waste management and environmental consulting. Over the past 18 years, Mr. Tagore-Erwin has conducted over 40 solid waste procurement and management projects for a variety of public agencies in California and Arizona. These projects include complex rate audits, performance reviews, and procurement projects. Mr. Tagore-Erwin has conducted numerous procurement and negotiation projects for communities in Southern California, including the cities of Rancho Palos Verdes, Duarte, Bradbury, Colton, San Bernardino, Upland, Montebello, and Irwindale. Mr. Tagore-Erwin holds both a Bachelor and Master of Arts Degree in Political Science, and is a certified meeting facilitator. Mr. Tagore-Erwin will assist Mr. Hutchinson on ... Steve Harriman Senior Analyst Mr. Harriman has more than 14 years of experience in conducting procurements, rate analysis, performance assessments, and contract development and administration. Mr. Harriman has performed on-site program management and audit services, conducted complex franchise compliance reviews and rate audits, implemented green waste collection and processing programs. Recently, Mr. Harriman managed the Franchise Compliance Audit p-"'"~,~ for the City of Citrus Heights. Mr. Harriman holds a Master of City and Regional Planning Degree, and a Bachelor of Arts Degree in · Environmental Studies and Physical Geography. Mr. Harriman will assist Mr. Hutchinson on ... Section B - 2 Project Experience Staff Qualifications Mr. Hutchinson has served as the project manager or materially participated in the following projects: Ric Hutchinson COMPLIANCE REVIEW AND FINANCIAL ANALYSIS City of Santa Rosa, California; City of Citrus Heights, Mr. Hutchinson has more California; City of Pleasant Hill, California; Douglas County, than 30 years of experience Nevada; E1 Dorado County, California; Polk County, Florida; in financial and Lake County, Florida; Palm Beach County, Florida, and management consulting, Seminole County, Florida auditing, and accounting. He has extensive Project Manager. Mr. Hutchinson analyzed financial records to experience in financial verify the accuracy of franchise fee payments made under the analysis and modeling, terms of collection service contracts. He also reviewed rate contract negotiations, adjustment methodologies and tested the validity of customer procurement of solid waste billing systems. Mr. Hutchinson worked closely with the and recycling services, cost municipalities and contractors to prepare compliance checklists of service studies, and develop reporting formats to aid in the review and resolution development of franchise of contract compliance issues, areas, and rate studies. Implementation of the San CONTRACT NEGOTIATIONS AND AMENDMENTS Jose contracts resulted in City of San Jose, California; City of Santa Rosa, California; savings to the City's rate City of Pleasant Hill, CalifOrnia; Placer County, California; payers of over $70 million. Douglas County, California; El Dorado County, California; Polk County, Florida; Lake County, Florida; Palm Beach County, Florida; Martin County, Florida, and Seminole County, Florida Project Manager. Mr. Hutchinson assisted in negotiating and amending existing solid waste and recycling collection contracts to comply with changes in law or changing needs of the client, and in negotiating the associated changes in terms, conditions and rates. SOLID WASTE AND RECYCLING PROCUREMENT SERVICES City of San Jose, California; City of Santa Rosa, California; Central Virginia Waste Management Authority; Polk County, Florida; Seminole County, Florida; Lake County, Florida;, Okeechobee County, Florida;, Palm Beach County, Florida; Martin County, FlOrida; Volusia County, Florida; Cooper City, Florida;DaniaBeach, Florida;LighthousePoint, Florida; p_~,,~ Deerfield Beach, Florida; Kansas City, Missouri; and Lubbock, Texas Project Manager. Mr. Hutchinson prepared solid waste and recycling procurement documents for numerous cities, counties Section B-3 ProjeCt Team and authorities. This included developing and designing service terms and conditions, contracts for services and cost proposal forms for the solid waste and recycling programs. He reviewed proposed programs, met with citizens and local officials, designed Ric Hutchinson procurement packages, developed collection contracts, analyzed responses, prepared award recommendations and drafted required Ordinances and Resolutions. FINANCIAL MODELING WORKSHOP Solid Waste Association of North America Project Manager. Mr. Hutchinson developed and presented a financial modeling workshop for the Solid Waste Association of North America (SWANA). SOLID WASTE AND RECYCLING PROCUREMENT WORKSHOPS Illinois Recycling Association, Solid Waste Association of North America, University of FlOrida. Project Manager. Mr. Hutchinson developed a workshop entitled "Contracting for Solid Waste and Recycling Collection Services" for the Illinois Recycling Association (IRA). He presented the workshop in several states for both the IRA and the Solid Waste Association of North America, (SWANA). In addition, he taught the course for several years for the University of Florida TREEO Center as part of the Landfill Managers Accreditation program. SOLID WASTE RATE STUDIES AND FINANCIAL ANALYSES City of San Jose, California; E1 Dorado County, California; Placer County, California; Douglas County, Nevada; City of San Anselmo, California; City of King City, California; City of Scottsdale, Arizona; City of Lubbock, Texas; City of Kansas City, Missouri; City of Oklahoma City, Oklahoma; Winchester Municipal Utilities (WMU), Winchester, Kentucky. Project Manager. Mr. Hutchinson assisted these units of local government in the review and analysis of their solid waste and recycling collection and processing costs. As part of these projects, he reviewed contracts, analyzed collector and processor costs and related data, prepared reports and recommendations and made presentations to governing boards. Section B - 4 DEVELOP SOLID WASTE FRANCHISE AREAS Staff Polk County, Florida; Seminole County, Florida; Solid Waste Qualifications Authority of Palm Beach County, Florida Project Manager. Using a relational database and mapping Ric Hutchinson software in conjUnction with County customer data, Mr. Hutchinson developed new franchise areas for the counties as they converted their solid waste collection programs from non- exclusive franchises to exclusive franchises. This included an analysis'of the cost variables related to providing collection services in different geographic and demographic areas of each county. The projects ranged in size from developing four franchise areas to developing twenty-one franchise areas. FINANCIAL PLANNING AND PROJECTION MODELS City of Scottsdale, Arizona; City of San Jose, California; Douglas County, Nevada; Polk County, Florida; and DeSoto County, Florida Project Manager. Mr. Hutchinson prepared long-term financial planning and projection models for residential and commercial solid waste and recycling collection programs, some of which included transfer stations and MRFs. The models normally include over 100 interactive variables for use in performing "what- if" scenarios and contain a "Historically Proactive" module that is used to develop the projections. At the end of each year, the annual data are automatically added to the historical database used to produce the projections, and all projections are reevaluated and restated. Registrations Certified Public Accountant, Florida Affiliations Member, Solid Waste Association of North America Member, American Institute of Certified Public Accountants Member, Florida Institute of Certified Public Accountants Education Bachelor of Arts Degree in Accounting, University of South Florida Section B - 5 Project Team Publications, Presentations, and Workshops Ric Hutchinson "Successfully Contracting for Solid Waste and Recycling Services", a training workshop presented nationally to the Illinois Recycling Association, Solid Waste Association of North America, and the TREEO Center of the University of Florida. "Building A Contract in San Jose" Waste A.qe, June 2002, Co- authored with E. Leung, City of San Jose, CA. "Contracting Services: A Question of Needs" World Wastes, October 1995. "Financial Aspects of Solid Waste Services", presented to the Solid Waste Association of North America, Arizona Landfill and Solid Waste Management Seminar. "Designing a Solid Waste Funding System for Today", presented to the Solid Waste Association of North America. "Competitive Procurement of Solid Waste Services", presented to the SWANA 30th Annual Western Regional Conference. "Evaluating Vendor Proposals", presented to the Illinois Counties Solid Waste Management Association. "Privatization of Disposal Facilities: A Ratepayers Perspective", presented to the Solid Waste Association of North America. "An Incremental Approach to Managed Competition" presented to the Solid Waste Association of North America's 2nd Annual Planning & Management Symposium. "Financial Assurance - Is it Really a Sure Thing?" presented to the Solid Waste Association of North America, WASTECON Section B - 6 Project Experience Staff Qualifications Mr. Tagore-Erwin has served as project manager or had significant involvement with the following projects: Richard PERFORMANCE REVIEW AND MANAGEMENT EVALUATION Tagore-P__rwin City of Bell Gardens, California; City of Colton, California; City of Manteca, California; City of Monrovia, California; City Over the past 18 years, Mr. of Garden Grove, California; City of Rancho Palos Verdes, Tagore-Erwin has worked California; City of San Bernardino, California; City of Upland, with public agencies to California; City of Gilbert, Arizona; City of Glendale, Arizona; design, evaluate, and City of Phoenix, Arizona; City of Scottsdale, Arizona; implement solid waste MaricOpa County, Arizona collection, processing, Project Manager. Mr. Tagore-Erwin reviewed management disposal, and administrative structures, job classifications and qualification requirements, and operations. His work billing and customer service systems. He also conducted on-site focuses on procurement, inspections of collection operations and maintenance procedures, financial analysis, and reviewed routing and route efficiency. He analyzed operational review, and operational and financial impacts of implementing automated sustainable development. collection Systems, single-stream recycling programs, and variable The work that Mr. Tagore- can rates for residential and commercial customers. Erwin completed for Santa Rosa allowed the City to implement single-stream RATE REVIEW AND FINANCIAL ANALYSIS and "no charge"commercial City of Scottsdale, Arizona; City of Sacramento, California; recycling four years ahead City of Garden Grove, California; City of Capitola, California; of schedule. CoUnty of E1 Dorado, California; County of Douglas, Nevada Project Manager. Mr. Tagore-Erwin assisted in reviewing rate Mr. Tagore-Erwin's work in applicatiOns for franchise haulers. As part of his efforts, he the City ofColton resulted in reviewed financial statements and assisted in the preparation and a 20% rate decrease, analysis of pro-forma rate models. He also conducted Peer implementation of Community Surveys to determine if proposed rates were automated collectionand consistent with surrounding market rates. He assisted in working provided over $~0 million .to sessions with the Cities and Counties and their franchised the City's generalfund. haulers, prepared the reports, and assisted in the presentations to City Councils and County Boards of Supervisors. Section B - 7 Project Team CONTRACT COMPLIANCE, MONITORING AND REPORTING City of Santa Rosa, California; City of Irwindale, California; City of Monrovia, California; City of Montebello, California; Rich a rd City of Sacramento, California; County of Marin, California; Tagore-Erwin County of Sacramento, California; County of San Bernardino, California; Western Placer Solid Waste Authority, California; City of Phoenix, Arizona Project Manager. Mr. Tagore-Erwin prepared hauler monitoring and reporting programs for single jurisdictions and regional agencies. He conducted on-site audits of hauler financial and operational records. He also developed and implemented reporting databases by jurisdiction, facility used, material type, and tonnage. SOLID WASTE AND RECYCLING PROCUREMENT SERVICES City of Santa Rosa, California; City of Upland, California; City of Duarte, California; City of Bradbury, California; City of Monrovia, California; City of Colton, California; City of Irwindale, California; City of Montebelio, California; City of Rancho Palos Verdes, California; City of San Jose, California; County of Santa Barbara, California; County of Sacramento, California Project Manager. Mr. Tagore-Erwin developed and designed service terms and conditions, franchise agreements and contracts, and cost proposal forms for the solid waste and recycling programs. He assisted in the preparation of the solid waste and recycling procurement documents, conducted pre-proposal conferences and interviews, prepared RFP addenda, negotiated final franchise agreements and contracts, and presented recommendations to City Councils and County Boards of SuPervisors. SOLID WASTE FACILITY EVALUATION AND DEVELOPMENT City of Phoenix, Arizona; City of Tucson, Arizona; City of South Pasadena, California; City of San Gabriel, California; City of Sacramento, California; County of'Santa Cruz, California; County of Marin, California; County of Sacramento, California; Western Placer Solid Waste ~~ Authority, California Project Manager. Mr. Tagore-Erwin prepared feasibility plans, conducted performance testing, and evaluated processing equipment and facility layouts. He administered procurement Section B-8 processes for MRF and compost equipment and operators, reviewed operating contracts, provided contract language Staff amendments, prepared secondary markets analyses, developed marketing agreements, and reviewed protocol for material Qualifications acceptance. Mr. Tagore-Erwin also conducted facility tours, made presentations to community groups, City Councils, and Boards of Richard Supervisors. Tagore,Erwin TUCSON ENVIRONMENTAL TECHNOLOGY PARK Actlink USA Corp., Arizona Project Manager. Mr. Tagore-Erwin led the project team in assembling a development team, developing the project concept, conducting the economic and technical analysis, and preparing a project proposal to build the Tucson Environmental Technology Park (TETP). In conjunction with the project developer, Actlink USA, his efforts focused on preparing an extensive economic development analysis in terms of job creation, capital investment, payroll, and value-added. The work effort also included preparing Preliminary site design, identifying and negotiating agreements with TETP's end-use manufacturers, conducting a market study, preparing a waste characterization study, and performing an environmental site review. RECYCLING MARKET DEVELOPMENT STUDY State of Arizona, Department of Commerce. Project Manager. Mr. Tagore-Erwin conducted this landmark study to assess the current and potential impacts of the recycling industry on Arizona's economy. His efforts focused on quantifying the amount and types of recyclables collected, processed, and used as feedstock in Arizona. Next, Mr. Tagore-Erwin analyzed the impact of recycling on Arizona's economy, in terms of jobs, investment, and value-added economic a~ctivity. The results of the study indicated that recycling accounted for over $1.3 billion in capital investment and value added activities, and approximately 4,000 direct jobs. SOLID WASTE PLANS, WORKSHOPS, AND MANUALS City of Sacramento, California; City of Manteca, California; City of Clayton, California; County of San Bernardino, California; County of Sacramento, California; Los Angeles CoUnty, California; Napa County, California; Marin County, California; Monterey County, California; State of California, ~ ~ Department of Commerce; State of Arizona, Department of Environmental Quality; State of Arizona; State of New Mexico; Guam: U.S. Navy Section B - 9 Project Team Project Manager. Mr. Tagore-Erwin led project teams in preparing over 100 solid waste management plans, waste characterization studies, and resource and planning manuals. He prepared state-wide, regional and local solid waste management RiChard plans, conducted multi-jurisdiction waste characterization studies, and worked with individual municipal agencies to develop in- Tagore-Erwin house recycling programs. He has also prepared planning manuals and conducted workshops for jurisdictions throughout California, Arizona and New Mexico, and has advised the California and Arizona state legislatures on solid waste policies. "BUY RECYCLED" PROCUREMENT STRATEGIES City of Tucson, Arizona. Project Manager. Mr. Tagore-Erwin led the project team in conducting a comprehensive review of Tucson's procurement policies and processes. His efforts focused on providing the City with an implementation plan detailing how bid specifications and the procurement process should be changed to increase the purchase and use of products with recycled .content, those that generate less waste, and those products that can easily be recycled. Education Bachelor of Arts in Political Science, University of Hawaii, Manoa Master of Arts.in Political Science, University of Hawaii, Manoa Publications, Presentations, and Workshops "Creating Effective Local Partnerships," presented to the League Of California Cities Annual Conference, San Francisco, CA. "Linking Solid Waste Management to Sustainable Development," presented to the Commission on Sustainable Development, Washington, D.C. "Implementing Source Reduction and Recycling Programs,"  presented to regional groups in Flagstaff, Phoenix and Tucson, Arizona. "Economic Impact of Recycling," presented to the Southwest Public Recycling Association, Tucson, Arizona. Section B - 10 Staff Project Experience Qualifications Mr. Harriman has served as project manager or materially Steve participated in the following projects: Harriman FRANCHISE COMPLIANCE REVIEW AND TRANSITION ASSISTANCE PROJECT Mr. Harriman has more City of Santa Rosa, California than 14 years of experience Mr. Harriman assisted the City of Santa Rosa with a' franchise in the field of solid waste, compliance review and transition assistance project regarding the water and wastewater utility Agreement between the City and North Bay Corporation management. He has ("Contractor"). The project included the formation of a extensive experiencein comprehensive compliance checklist to monitor the performance procurement of residential of the Contractor, and facilitation of meetings between the City and commercial solid waste and the Contractor to coordinate the implementation of several collection, disposal and new programs, including residential and commercial single-stream recycling services, recycling and weekly green waste collection. In addition, Mr. public/private partnerships, Harriman reviewed franchise fee payments and corresponding recycling and compost calculations from the Contractor, and reviewed the customer program design and service and billing functions for compliance with the franchise implementation, variable can rate programs, regional agreement, agency formation, litigation support, contract CONTRACT COMPLIANCE REVIEW negotiation and administration, waste City of Citrus Heights, California characterization, customer Mr. Harriman assisted the City of Citrus Heights with a rate study service and billing, and and contract compliance review project for the Service Agreement public education and with the Sacramento County Department of Waste Management outreach. and Recycling. The project included a review of the County Service Fee and Franchise Fee calculations and payments to- As a result of Mr. date, and the construction cfa rate model to p~'oject the financial Harriman's work for Citrus solvency of the Citrus Heights Enterprise Fund for the remaining Heights, the City will contract term. The project included on-site review of financial receive an addition $7'2,000 documents, interviews with City and County staff, and in franchise fees and save presentation of the project findings to the Citrus Heights City over$5OO, OOOin collection Council. fees. FINANCIAL AUDIT MANAGER Puerto Rico Infrastructure Authority, Puerto Rico The Puerto Rico Aqueduct and Sewer Authority ("PRASA") utilizes a private contractor to perform the operations and maintenance Section B - 11 "'-: 'r--rujec~ Team functions of the island-wide water and wastewater utility. Under contract to the Puerto Rico Infrastructure Finance Authority, Mr. Harriman served as the Financial Audit Manager of the Contract Administration Group from October 1998 through October 2002. In this capacity, Mr. Harriman managed a financial audit team Steve Harriman charged with the review, reconciliation, payment and reporting of maintenance, operational and capital improvement program expenditures incurred by the private operator on behalf of the Commonwealth of. Puerto Rico in the annual amount of $200 million. In addition, he prepared monthly financial status reports to the Governor of Puerto Rico and PRASA Governing Board, and calculated budget deficit projections for the Government Development Bank. NEGOTIATION OF $700,000 ANNUAL PERFORMANCE INCENTIVES TO PRIVATE CONTRACTOR Puerto Rico Infrastructure Authority, Puerto Rico Under contract to the Puerto Rico Infrastructure Finance Authority, Mr. Harriman served as the Audit Manager of the Customer Service and Billing DePartment from October 1998 through October 2002. In this capacity, Mr. Harriman managed quarterly and annual audits of the Customer Service and Billing Department that serves approximately 1.8 million water and wastewater accountS, and negotiated annual incentive payments of $700,000 to the private operator. These tasks included audits of the meter reading and bill production functions, handling of new and delinquent accounts, posting of water and wastewater receipts to the general ledger, wait time reductions in commercial agencies, etc. The audit and incentive payment system resulted in improvements in every audited customer service and billing function performed by the private operator. DESIGN AND IMPLEMENTATION OF GREEN WASTE COLLECTION AND PROCESSING PROGRAM Sacramento County Waste Management and Recycling Division, California Mr. Harriman was the project manager for the design and implementation of the countywide green waste collection and processing program. The first phase of this project included a three-year pilot study to quantify specific programmatic and Section B - 12 operational parameters, including fluctuation in green waste Staff generation levels, resident participation and contamination levels Qualifications in different neighborhoods, and seasonal variation in green waste generation and composition. Mr. Harriman also coordinated with the Operations Division to establish a data monitoring system throughout the pilot study. Steve Harrirnan At the conclusion of the three-year pilot study, Mr. Harriman incorporated the pilot study data into the design and implementation of the first phase of the countywide implementation of the program. These tasks included design of collection routes to maximize efficiency, analysis of collection equipment and labor utilization, coordination of the public education program, and monitoring of the private contractor on material processing and marketing issues. The program currently serves approximately 165,000 residential accounts in the unincorporated portion of Sacramento County. PROCUREMENT PROCESS FOR A GREEN WASTE FACILITY OPERATOR Sacramento County Waste Management and Recycling Division, California Serving as a Solid Waste Planner for the Sacramento County Waste Management and Recycling Division, Mr. Harriman was the project manager for the initial process to procure a private operator to site, permit and operate a facility to accept, process and market green waste material from the county collection fleet. The project included the preparation and distribution of a Request for Statement of Qualifications ("SOQ"). Mr. Harriman chaired the selection committee charged with the review of the SOQ documents and subsequent selection of a shod-list of qualified bidders. He then prepared a Request for Proposal document ("RFP") and administered the bid preparation process with the qualified bidders. Upon receipt of the proposals, Mr. Harriman chaired the evaluation committee charged with the review and selection of a qualified bidder for award of the contract. At the conclusion of the RFP process, Mr. Harriman drafted a contract document and administered the execution of the document with the County Environmental Management Department and Board of Supervisors. The prOgram currently diverts approximately 100,000 tons per year of greenwaste from landfill disposal in Sacramento County. Section 2 - 13 r~ ..I ..~rruje~,t Team EVALUATION OF COMMERCIAL RECYCLING PROGRAM ALTERNATIVES City of Pleasanton, California Steve Harrirnan Mr. Harriman assisted the City of Pleasanton in the development and evaluation of commercial recycling program alternatives in an effort to comply with the landfill diversion mandates of AB 939. The project included facilitation of meetings between City staff, the franchise hauler and several representatives of the Pleasanton ~' business community to define alternatives and establish review criteria. Mr. Harriman also coordinated on-site surveys and employee interviews of large-scale commercial generators within the City to evaluate the feasibility of alternatives, and prepared a cost/revenue model and evaluation matrix for the selected alternatives. Affiliations Member, California Resource Recovery Association Education Master of City of and Regional Planning, California Polytechnic, San Luis Obispo Bachelor of Arts in Environmental Studies and Physical Geography, University of California, Santa Barbara Publications, PreSentations, and Workshops "Strategies for Regulating the Compost Industry in California'; Presented to California Organics Recycling Council, Sacramento, CA. "Closing the Loop -. Comprehensive Residential Collection System in Sacramento County", Presented at California Resource Recovery Association Annual Conference, Santa Barbara, CA. "The Effects of Energy Deregulation on the California Biomass Industry", Presented to the Legislative Subcommittee on Energy Deregulation, Sacramento, CA. Section B - 14 Project Schedule Task Date (Week of...) Notice to Proceed April 5, 2004 Project Kick-off Meeting (Task 1.2) April 12, 2004 Initial Program EValuation (Task 1.3) May 3, 2004 First Council Workshop (Task 2.1) May 17, 2004 Second Council Workshop (Task 2.1) May 24, 2004 Complete Development of RFP and Release July 12, 2004 Document (Tasks 3.1, 3.2, 3.3 and 3.4) Mandatory Pre-Proposal Conference (Task 3.5) August 9, 2004 Proposals Due Sept 13, 2004 Evaluation Team Completes Evaluation October 4, 2004 Council Approves Selection October 25, 2004 Complete Negotiations and Finalize Franchise Dec 6, 2004 Agreement Council Executes Franchise Agreement Dec 13, 2004 (Task 4) Begin Service July 1, 2005 Section D - 2 ATTACHMENT 2 RESOLUTION NO. '- 04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN GREEMENT WITH R3 CONSULTING GROUP FOR SOLID WASTE FRANCHISE PROCUREMENT SERVICES WHEREAS, the City currently has a solid waste franchise agreement which will expire on June 30, 2005; and · WHEREAS, the City Council has determined that it is in the City's best interest to solicit competitive bids for solid waste collection and disposal services; and WHEREAS, due to the technical nature of these services it is important for the City to obtain professional assistance on this project; and WHEREAS, the City completed a consultant selection process resulting in the recommendation that R3 Consulting Group serve as the City's consultant on this project; and WHEREAS, the City Council received and considered the report outlining the proposal submitted by R3 Consulting Group; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the agreement with R3 Consulting Group attached hereto. BE IT FURTHER RESOLVED that the Mayor is authorized to execute the agreement. PASSED, APPROVED AND ADOPTED this 6th day of April, 2004. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT 3 CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND R3 CONSULTING GROUP THIS AGREEMENT for consulting services is made by and between the City of Dublin ("City") and R3 Consulting Group("Consultant") as of April 6, 2004. Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide toCity the services described in the Scope of Work attached as Exhibit A at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail. 1.1 Term of Services. The term of this Agreement Shall begin on the date first noted above and shall end on February 28, 2005, and Consultant shall complete the work described in Exhibit A prior to that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City'S right to terminate the Agreement, as provided for in Section 8. 1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. Consultant shall prepare all work products required by this Agreement in a substantial, first-class manner and shall conform to the standards of quality normally observed by a person practicing in Consultant's profession. '1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided.in Section 1.1 above and to satisfy Consultant's obligations hereunder. Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $79,950, notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant's proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 1 of 13 Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement. 2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: · Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; · The beginning and ending dates of the billing period; · A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion; · At City's option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense; · The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder, as well as a separate notice when the total number of hours of work by Consultant and any individual employee, agent; or subcontractor of Consultant reaches or exceeds 800 hours, which shall include an estimate of the time necessary to complete the work described in Exhibit A; · The Consultant's signature. 2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Final Payment. City shall pay the last 10% of the total sum due pursuant to this Agreement within sixty (60) days after completion of the services and submittal to City of a final invoice, if all services required have been satisfactorily performed. 2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 2 of 13 In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment. 2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the following fee schedule: 2.6 Reimbursable Expenses. Reimbursableexpenses are specified on Exhibit B, and shall not exceed $3,000. Expenses not listed on Exhibit B are not chargeable to City. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded. 2.7 Payment of Taxes' Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. 2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs incurred to that date. 2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein. City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant's use while consulting with'City employees and reviewing records and the information in possession of the City, The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure "occurrence coverage" insurance against claims for injuries to persons or damages to property that may arise from or in connection with the Performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects to the City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 3 of 13 insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor .to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. 4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by Consultant. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative, Consultant may rely on a self-insurance program to meet those requirements, but °nly if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement. An endorsement shall state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 4,2 Commercial General and Automobile Liability Insurance. 4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non- owned automobiles. 4.2.2 Minimum scope of coverage, Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. Automobile coverage shall be at least as broad as Insurance Services Office Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting' Group Page 4 of 13 Automobile Liability form CA 0001 (ed. 12/90) Code 1 ("any auto"). No endorsement shall be attached limiting the coverage. 4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as an endorsement to the policy: a. City and its officers, employees, agents, and volunteers shall be covered as insureds with respect to each of the following: liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or volunteers. b. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. c. An endorsement must state that coverage is primary insurance with respect to the City and its officers, officials, employees and volunteers, and that no insurance or self-insurance maintained by the City shall be called upon to contribute to a loss under the coverage. d. Any failure of CONSULTANT to comply with reporting provisions of the policy shall not affect coverage provided to CITY and its officers, employees, agents, and vOlunteers. e. An endorsement shall state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 4.3 Professional Liability Insurance. Consultant, at its own cost and expense, shall maintain for the pedod covered by this Agreement professional liability insurance for. licensed professionals performing work pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covedng the licensed professionals' errors and omissions. 4.3.1 Any deductible or self-insured retention shall not exceed $150,000 per claim. 4.3.2 An endorsement shall state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Consulting Services Agreement between Apdl 6, 2004 City of Dublin and R3 Consulting Group Page 5 of 13 4.3.3 The policy must contain a cross liability or severability of interest clause. 4.3.4 The following provisions shall apply if the professional liability coverages are written on a claims-made form: a. The retroactive date of the policy must be shown and must be before the date of the Agreement. b. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five years after completion of the Agreement or the work. The 'City shall have the right to exercise, at the Consultant's sole cost and expense, any extended reporting provisions of the policy, if the Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this Agreement. 4.4 All Policies Requirements. 4.4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. 4.4.2 Verification of coveraqe. Prior to beginning any work under this Agreement, Consultant shall furnish City with certificates of insurance and with original endorsements effecting coverage required herein. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 4.4.3 Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 4.4.4 Variation. The City may approve a variation in the foregoing insurance requirements, upon a determination that the coverages, scope, limits, and forms of such insurance are either not commercially available, or that the City's interests are otherwise fully protected. Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 6 of 13 4.4.5 Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of Contract Administrator, Consultant may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Consultant procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. 4.4,6 Notice of Reduction in Coverage. In the event that any .coverage required by this section is reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to City at Consultant's earliest possible opportunity and in no case later than five days after Consultant is notified of the change in coverage. 4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach: · Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; · Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or · Terminate this Agreement. Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Consultant or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work, The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 7 of 13 violation of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold. harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and that it is a material element of consideration. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Section 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. 6.2 Consultant No Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. Section 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. ConsUltant and any subcontractors shall comply With all laws applicable to the performance of the work hereunder. Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 8 of 13 7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program. 7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective. professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. 7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person's race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby. Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement. Section 8. TERMINATION AND MODIFICATION. 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon 30 days' written notice to City and shall include in such notice the reasons for cancellation. In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. 8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 9 of 13 written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no ' obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period. 8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties. 8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant's unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator. 8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement. 8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall included, but not be limited to, the following: 8.6.1 Immediately terminate the Agreement; 8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; 8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or 8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work. Section 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 10 of 13 Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties. 9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. 9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City.. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement. Section 10 MISCELLANEOUS PROVISIONS. 10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Alameda or in the United States District Court for the Northern District of California. 10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not So adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 11 of 13 10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties. 10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. 10.7 Conflict of Interest, Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of. location, would place Consultant in a "conflict of interest," as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq. Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement. Consultant understands that, if this Agreement is made in violation of Government Code {}1090 et. seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code {} 1090 and, if applicable, will be disqualified from holding public office in the State of California. 10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials. 10.9 Contract Administration. This Agreement shall be administered by Jason Behrmann, Administrative Analyst ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee. 10.10 Notices. Any written notice to Consultant shall be sent to: ATTENTION: RICHARD J. HUTCHINSON R3 CONSULTING GROUP 4811 CHIPPENDALE DRIVE, SUITE 902 SACRAMENTO, CA 95841 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 12 of 13 Any written notice to City shall be sent to: ATTENTION: JASON BEHRMANN, ADMINISTRATIVE ANALYST CITY OF DUBLIN 100 CIVIC PLAZA DUBLIN, CA 94568 10.11 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawingS shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example. Seal and Signature of Registered Professional with report/design responsibility. 10.12 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. CITY OF DUBLIN CONSULTANT JANET LOCKHART, MAYOR RICHARD J. HUTCHINSON, PRINCIPAL Attest: Kay Keck, City Clerk Approved as to Form: Elizabeth H. Silver, City Attorney Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group Page 13 of 13 EXHIBIT A SCOPE OF SEEVICES Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit A Page 1 of 14 Section G - Scope-.ofServices Project Approach The following information R3 understands that the City of Dublin ("City") wishes to conduct a was used by R3 in the competitive proposal process by issuing a Request for Proposals document ("RFP") to procure_residential and commercial collection, preparation of this proposed disposal and processing services. Scope of Services: · The City's' RFP Our proposed scope of services is for full service procurement assistance. R3 has considered the following factors in regards to the · Discussions with Jason City of Dublin in the development of this Scope of Services: Berhmann, Administrative Analyst and Project Customer Service and Cost Effectiveness: The primary objective of Manager for the City of the competitive proposal process is to provide the residents and Dublin businesses of the City of Dublin with the highest level of solid waste collection, disposal, and recycling service at the most competitive · Review of the City of price. R3 has prepared this Scope of Services to successfully Dublin, ACI~TffA and accomplish this objective. CIWMB websites and printed materials Proiect Schedule: The current Franchise Agreement with Livermore- Dublin Disposal expires on June 30, 2005. The City's objective is · R3 's experience working to complete the negotiation phase and execute the new Franchise on numerous procurement Agreement by the end of December 2004. This will allow sufficient projects with similar time for the selected hauler to prepare for the start date of July 1, issues 2005. This Scope of Services is designed to successfully complete this project on schedule. Combined versus Separate Collection and Disposal Contracts: In an effort to procure the best combination of services at the best price, the City is evaluating separate versus combined collection and disposal contracts. R3 recommends that the City request cost proposals for both scenarios in the RFP document, thereby allowing the evaluation team and City Council to select the alternative that offers the best deal to the City. AB 939 Compliance: R3 understands that the City has a firm commitment to aggressive waste reduction and recycling goals. R3 recommends that the City consider a mechanism to provide a financial incentive to the selected hauler to exceed the diversion mandates of AB 939 and meet the diversion goals of the ACWMA. R3 has successfully implemented this system in similar Franchise Agreements. Commercial Recycling Programs:_The_currentcommercial recycling ---I ............. [~.~ Section G - 1 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit A Page 2 of 15 Scope of Services --net ~cost savings for businesses that recycle, we b~lieve this system sends the wrong message to the business community. R3 recommends that the City consider restructuring the commercial rates such that recycling is offered to local businesses at no additional charge, and all program costs are built into the commercial garbage collection rates. R3 recently implemented this system in a similar Franchise Agreement, and waste reduction and recycling activities have increased dramatically as a result. As the business sector continues to grow in the City of Dublin, commercial recycling will play an increasing role in the effort to comply with the diversion requirements of AB 939, and this strategy will likely provide a long-term benefit to the business community and the City. Urban Growth: R3 understands that the residential and commercial sectors of the City are forecasted to experience significant growth throughout the term of the new Franchise Agreement. This will require the selected hauler to efficiently accommodate increases in accounts, collection fleet, labor, service area, etc. Ownership of Existing Garbage and Recycling Carts: The ownership of the existing garbage and recycling carts in the City of Dublin affects the structure of the RFP document and potential hauler transition issues. R3 recommends that ownership of the existir~g carts be determined early in the process, and that the RFP document be drafted accordingly. Community Participation: R3 understands that the City is committed to community participation and feedback throughout the procurement process. R3 recommends that a community outreach program be developed to educate residential, multi-family and business sector customers about the procurement process and to receive feedback on the design of new programs. We have utilized numerous outreach formats including City Council and public workshops on similar prOcurement projects, and we believe it is an important component of the process. Our project approach is designed to result in a successful competitive procurement and franchisee selection process within the requested time schedule. Work Tasks [~.__ ~ ] This sect-ion details R3's work tasks for providing comprehensive ": ...... ....... - - ...... "~'-- ~ -~d prOcessing se~i'ces. Please-note that the- tasks ~e 'desired to Section G 2 [ assist the City evaluate the ~o pfimaw options ~d implement ~e Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit A Page 3 of 15 _ Scope of preferred option. The two options include separate collection and SerVices disposal agreements, and a combined collection and disposal agreement. Task1: Determine' The City's Collection and Disposal Needs Task 1.1 Document Request and Review Upon authorization to proceed, R3 will provide the City with a preliminary document request list. This will allow the City to assemble the required documents so the R3 Project Team can immediately begin work upon receipt of a Notice to Proceed. The following is a preliminary list of documents that will likely be requested from the City: · Solid waste ordinances and resolutions; · Current Franchise Agreement and all amendments; · Current customer rate schedule; · Residential and commercial demographic information; ·Growth projections in the residential and commercial sectors; · Annual disposal and diversion reports submitted to the California Integrated Waste Management Board ("CIWMB"). R3 will review the data and information submitted and identify any additional data requirements or issues for discussion at the Project Kick-off Meeting (Task 1.2). Task 1.2 Project Kick-Off Meeting The primary objective of the kick-off meeting is to confirm the project goals, review the project scope and schedule, identify appropriate contacts from the City and R3, and address any outstanding issues or concerns. In addition, R3 will discuss the initial data and information review, and coordinate the nature and timing of access to City staff, facilities and records. Prior to the Project Kick-off Meeting, R3 will prepare an agenda and project schedule in a detailed Gantt chart format. We will request that City staff review this documentation and work with R3 to ~:_p~ep~o_.the.final meeting agenda.:andJnatefials pfiorm the Project---.~ Section G - 3 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting GrouP-Exhibit A Page 4 of 15 ScoPe of Services - -Task 1.3 Initial Program Evaluation R3 will work with City staff to determine the best combination of solid waste collection, disposal and recycling programs for residential and commercial customers. The primary objective of this Task is to develop a "shod-list" of program alternatives for presentation at a Council Workshop and for further technical evaluation. The programs and issues for evaluation may include, but not be limited to, the following: · Separate versus combined solid waste collection and disposal contracts; · Residential and commercial food waste recycling programs; · Effectiveness of proposed programs in diverting waste from landfill dis posal; · Container sizes, colors, footprint and labeling requirements; · Rate structures for residential and commercial garbage collection and recycling services; · Financial incentives to increase recycling and / or penalties for failure to meet diversion requirements; · Waste reduction, recycling and education programs and strategies for multi-family complexes and residents; · Specific list of acceptable recyclables in City programs; · Appropriate level of City Franchise Fee revenue; · Household Hazardous Waste and E-Waste collection, disposal and recycling alternatives; · Bi-Annual customer rate setting and contractor(s) service fee adjustment mechanisms; · Split-bodyversus conventional collection vehicles; · Open versus exclusive franchise or permit system for recycling companies and debris-box haulers; · Clean air technologies versus conventional vehicles; Section G - 4 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit A Page 5 of 15 S _c ope of · Service challenges such as narrow or steep streets, long Services driveways, gated communities, mixed-use developments, etc; · Public education and community outreach programs. R3 will prepare a report to the City detailing the results of the initial evaluation of alternatives. The report will include an evaluation matrix with linkages between specific program options and the technical and financial evaluation. R3 will then work with City staff to develop a "short-list" of program options to be presented and discussed at one or more Council Workshops (Task 2). The recommendations will also form the basis of program options to be included in the RFP Package (Task 3). Deliverables Task 1 includes the following deliverables: · Initial document request list submitted to City staff; · Detailed project schedule in Gantt chart format; · Review and confirmation with City Staff of Project Objectives, Approach, Schedule, Budget, Communication Protocol, etc; · Preliminary agenda for Project Kick-off meeting; · Participation during Project Kick-Off meeting; · Five (5) copies of a written report summarizing the evaluation of prog ram options; · One (1) presentation of Task I results to City staff, City Council or evaluation committee, as directed by City staff. Task 2: Community Outreach Program R3 believes that community participation in the procurement process at the early stage of selecting program options is a key feature of a successful procurement. The primary objectives of the Community Outreach Program are to inform residents and businesses about the procurement process and to receive input on the proposed program options. Section G - 5 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 6 of 15 Scope of Services R3 anticipates working with City staff, City Council, residents, homeowners associations, business groups, and local media outlets to provide opportunities for community input. Task 2.1 Council WOrkshops on Program Options Building on Task 1, R3 will conduct up to two (2) Council Workshop(s) to generate/receive input, ask/answer questions, .and review the issues matrix (addressing issues such as service frequency and containers). Prior to the initial Council Workshop(s), R3 will prepare and submit the presentation materials to City staff for review and comment. Task 2.2 Additional Community Workshops and/or Public Outreach Additional community outreach opportunities will be Provided to ensure adequate public participation and input throughout the process. The scope and nature of this outreach will be as directed by the City following the initial Council Workshop(s). Task 3: Prepare, Issue and Evaluate Request for Proposals (RFP's) Task 3.1 Develop Performance Requirements This phase of the preparation of the RFP document involves the development of performance requirements. R3 understands that the process of developing performance requirements will involve a series of meetings with City Staff and R3. The performance requirements will establish minimum service standards and focus primarily on operational issues. Upon completion by City staff and R3, the performance requirements will be incorporated into the draft Franchise Agreement and distributed in the RFP package. The performance requirements may include, but not be limited to, the following: · Minimum waste diversion requirements; · Minimum waste disposal facility requirements; · Specifications for container size, color, and labeling; ~~2-:.!. i._'`''-~:~-- --: -:---~" ':~ --:: Public--- education:-:' 'program'-req uirements ' (e':g:;"~- quarterly Section-O - 6 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 7 of 15 Scope of · Collection, disposal and recycling services to City offices, -~ ~ -' - facilities and events; Services · Time requirements for responses to customer calls regarding service complaints (e.g., missed collections, material spillage, hydraulic leaks, etc); · Time requirements for responses to customer calls regarding billing complaints, new accounts, etc.; · Time requirements for cart or bin exchanges; · Vehicle noise requirements; · Vehicle maintenance requirements; · Minimum insurance coverage requirements; · Collection frequency and method; and · Processing and marketing requirements for green waste and recyclables. Tasl~ 3.2 Develop Request for Proposals Document R3 will prepare an RFP package based on information generated from Tasks 1 and 2, as well as our experiences working with the solid waste community. The RFP will include a draft Franchise Agreement, which will specify the conditions of the franchise (e.g., collection and disposal service requirements, performance standards, insurance, and liability/indemnification requirements), and cost forms for contractors to complete. The RFP will specify minimum requirements and qualifications and will require contractors to submit work plans that speCify how they will transition to new services, achieve diversion requirements, implement customer . service programs, and promote public education activities. Separate sections of the RFP will include instructions specifying the rules of the negotiation process for the contractors and the City, the format and submittal of responses, proposal cost and service forms, and the method for evaluating responses. We suggest including computer disks that contain forms for the contractors as part of the submittal package. As an option, the City may wish to post the RFP on its web site in PDF format. In our experience, the Franchise Agreement should bedeveloped_-j ........ -._: .._~ _V_.___._~ ................ the time and cost of negotiations, and contractually links the [ . Section G - 7 Consulting Se rvices Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 8 of 15 .Scope of Service --re{:tuested services to proposed costs as part of the evaluation process. We have followed this proven approach in our scope of services and strongly recommend that the City elect to Use it given the project timeline. Accordingly, R3 will prepare the draft Franchise Agreement to be included as part of the RFP document. The draft Franchise Agreement will be structured to incorporate the two potential options for the final agreement, including separate collection and disposal agreements, and a combined collection and disposal agreement. Contractors will be required to specify any exceptions and progide language :for any changes they propose as part of their proposal package. In addition, contractors will not be allowed to make changes to the Franchise Agreement after submittal of proposals. The Franchise Agreement will include, at a minimum, the following primary sections: · Definitions; · Representations and warranties; · Franchisee term; · Scope of services; · Compensation; · Operating assets; · General requirements; · Financial record-keeping and reporting requirements; · Indemnity, insurance, and bond; · Performance standards; · Breach, default, and remedies; and · AB 939 diversion requirements and indemnification.' The Franchise Agreement will establish the scope of services to be provided by the contractor and will specify performance standards. Section G - 8 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 9 of 15 Scope_.of Task 3.3 City Council Presentation -~ Services R3 will develop and give a presentation explaining the details of the draf~ RFP for review by the City Council. R3 will attend a City Council meeting to present the details of the draft RFP for discussion and approval prior to release. Task 3.4 Finalize & Issne RFP R3 will finalize the RFP and provide the City with one un-punched, original, and twenty (20) copies in three-ring binders. In addition, R3 will publicize the availability of the RFP package, and provide the City with a draft notice of the availability for release on City letterhead Task 3.5 Evalnation of Proposals R3 will assist the City in evaluating the proposals received in response to the RFP. R3 recommends using a "double-blind" process to complete the evaluation and selection process. This "Double Blind'.' process has worked effectively in numerous procurement processes completed by R3 Team Members, and has proven effective in maintaining the objectivity of the selection process. However, the-City may select an alternate or modified selection process, as it deems appropriatel The recommended "double-blind" process is described below: First, R3 will provide scoring instructions and tables to members of the eValuation committee with six (6) evaluation criteria, including: · Overall responsiveness to the RFP; · Proposers' experience; · Adequacy and completeness of the technical proposal; · Financial stability; · References; · Proposed cost. After the evaluation committee has completed the evaluation process, the raw scores will be sealed and given to the City Clerk. R3 :_wilt then make a-presentation- to_:the. City-_ Council.-0nthe six (6) evaluation criteria, and the Council members will individually Section G - 9 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit A Page 10 of 15 S cope of Servl-Ce a~ign ~veights to each criterion. The Council weights will then be averaged and applied to the raw scores from the evaluation committee. R3 will calculate the weighted results for each proposal by applying the average weighting factors from the City Council to the raw scores fi.om the evaluation committee. For this task, R3 will be responsible for the following: · Preparing an RFP package for distribution to prospective haulers and disposal facilities that includes the draft Franchise Agreement, process rules, evaluation and selection criteria, project schedule, and all required forms; · Drafting a Franchise Agreement that all items listed in Task 3.2 above; · Providing process rules to guide the negotiation process (e.g., how the proposers may communicate with City staff, the consultant, and the City Council, the format for negotiation sessions; and options available to the City if negotiations are not completed successfully); · Preparing a notice of availability of the RFP document and how proposers may obtain copies; · Conducting a pre-proposal meeting; · Preparing written responses to questions submitted before and during the pre-proposal meeting; · Preparing addenda to the RFP, as required; · Assisting the evaluation committee with the evaluation of the technical feasibility of each proposal; · Assisting the evaluation committee with the evaluation of each proposers statement of technical feasibility, financial solvency and demonstrated success in the industry; · Preparing an evaluation matrix to easily compare the proposed collection and disposal rates for each service or program; · Preparing any written request for clarification to the 272-'r---.~::~_--_ : :_~:~-~:: :r~:::.z:~..~:_z ::~:::--:_w-, :r--Scheduling and.-conduc~ting-inte~iews-with th-e~proposers; Section G - 10 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A F~age 11 of 15 Scope of · Conducting additional community workshops; as necessary- ~ ~ ~~erv:ce (Task 2); ·Preparing a letter report detailing the results of the evaluation committee; · Presenting the results of the evaluation process to the City Council. Task 4 Negotiate with Top Ranked Contractor, and Finalize New Franchise Agreement for City Council Approval R3 will participate in Franchise Agreement negotiations with the top ranked contractor(s). Negotiations will focus on clarifying the contractor's service and cost proposals, finalizing contractual language, and ensuring that the proposed collection and disposal rates are appropriate given the level of requested service. Based on similar project experience, we anticipate a series of offers and counter-offers over an approximate two-week period. We therefore suggest that the City host the negotiation sessions. For this task, R3 will be responsible for." · Participating in negotiations with the top ranked contractor(s). Negotiations will focus on clarifying the contractors' service and cost proposals, finalizing contractual language, and to the extent necessary, clarifying the proposed collection and disposal rates; · Preparing a listing of outstanding service, cost, and Franchise Agreement issues to be negotiated with the contractors; · Preparing a report detailing the results of the negotiation session; ·Revising the Franchise Agreement(s) based on the resUlts of the negotiation sessions~; · Conducting additional community workshops as necessary ~ It has been our experience that minimal changes are required to finalize the Franchise Agreement. Section G - 11 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 12 of 15 Scope of oc~t v~tC'~'~'"lces · -Pre~enting the results 'of the final negotiations to the City Council. Optional Tasks The following are examples of optional tasks that R3 has performed for other clients in the execution of similar procurement projects. These services would be performed as necessary at the direction of City staff. Please note that the Project Budget included in Section F 'does not include any of these optional tasks. Transition Assistance In order to ensure a smooth transition of haulers (potentially) and implementation of new programs, R3 will work with the selected contractor to develop and maintain a checklist to organize and track implementation tasks during the transition period. R3 proposes that the checklist be initially developed in conjunction with the selected contractor, and reviewed and updated regularly during the transition process. The following are examples of transition checklist tasks: · Order collection vehicles, carts and/or bins; · Develop a plan to coordinate the transition of customer and billing functions to a new hauler; · Develop plan to coordinate the delivery of new carts and/or bins with the collection of old carts and/or bins from local residents and businesses; · Develop new route maps and inform residents of collection day changes; · Develop equipment inventory; · Develop and implement public education campaign; · Coordinate "Kick-off' media event for collection programs; · Advertise community meetings; · Develop press releases. Section G - 12 Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 13 of 15 Scope of Develop Contractor Reporting Checklist -- ServiCes The contractor will be required to submit numerous reports to the City during the contract term. R3 will develop a checklist for easy reference by both the City and the contractor to identify recurring contractual requirements and the corresponding due dates. The checklist will be used as a tool at the meetings between the City, the contractor and R3 to address concerns or confusion regarding these requirements. The following are examples of reporting checklist tasks: · Annual diversion report; · Contractors payment to City; · Financial information report; · Accounting records; · Contract materials records; · CIWMB (format) annual reports; · Public education and outreach plan; · Annual collection service notice; and · Performance bond and insurance certificates. Development of Franchise Fee Payment System The contractor will be required to submit a monthly Franchise Fee payment to the City throughout the contract term. R3 will coordinate 'with the City and the contractor to develop a Franchise Fee Payment form for use by the contractor. The form will provide the detail needed by the City to document the basis for the franchise fee payments. Review of Contractor Accounting System For purposes of calculating franchise fees and reviewing financial records, it is important that the contractor's accounting system be designed to segregate the revenues and expenses related to the City Franchise Agreement from those revenues and expenses related to services pro~idedto o.~_ermunicipalities Section G - 13 Consulting Services Agreement between April 6, 2004 Oity of Dublin and R3 Consulting Group-.Exhibit A Page 14 of 15 Scope of S ervices As part ~' th~ develo-~mer/t of the franchise fee payment system, R3 will review the accoUnting system developed by the contractor to verify that it is designed to segregate the revenues and expenses related to the services provided under the terms of the Franchise Agreement with the City. Customer Service and Billing The contractor will be required to provide a Customer Service and Billing center for City residents. In addition, the Franchise Agreement will contain a variety of other requirements related to customer service and billing. R3 will review the customer service training program and observe the customer service operations during the transition period. In addition, we will review customer service call logs for problem area patterns, and work with the City and the contactor as needed to resolve the identified problem areas. Section G - 14 Consulting Services Agreement between' April 6, 2004 City of Dublin and R3 Consulting Group-Exhibit A Page 15 of 15 EXHIBIT B COMPENSATION SCHEDULE Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit B Page 1 of 2 Section F Project Budget Project Budget Table F-1 below provides a not-to-exceed cost estimate to administer the procurement process. This is followed by the R3 billing rate schedule and charges. Task Hours Cost Task 1: Document Request, Project Kick- 85 $11,475 off Meeting, and Initial Program Evaluation Task 2: Community Workshops 100 $13,500 Task 3: Prepare, Issue and Evaluate RFP's 305 $41,175 Task 4: Negotiation and Execution of 80 $10,800 Franchise Agreement Reimbursable Expenses 0 $3,000 Totals 570 $79,950 Billing Rates and .Charges Rates valid through term of contract Technical Services Project Manager $135~00/hour Senior Analyst $135.00/hour Analyst $90.00/hour Associate $75.00 hour Administrative Support $50.00/hour Reimbursable Expenses Consultants/Subcontractors N/A Lodging and meals cost Travel Private or company car $0.375 per mile Delivery and other expenses cost Payments Un!~ss 9~.~ise...agreed in wdfing, fees .~v~!..be._.bi!!e.d m0~hly at the..first of.each_month..for the preceding.month and .will'be payable ............ within 30 days of the date of.the invoice._'..~_ ..... . __ .: ............................. ~Se_c_ti?.~F. Consulting Services Agreement between April 6, 2004 City of Dublin and R3 Consulting Group--Exhibit B Page 2of 2 CITY OF DUBLIN BUDGET CHANGE FORM CHANGE FORM #: New Appropriations (City Council Approval Required): Budget Transfers: x From Unappropriated Reserves Fund # __ From Budgeted Contingent Reserve (1080-799.000) FrOm New Revenues Within Same Department Activity Between Departments (City COuncil Approval Required) Other qame: Name: Waste Management Account: Account: 001.50200.740.000 26,650 Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Total Total 26,650 Reason for Budget Change: Staff did not receive authorization to proceed with competitive bid process that require consultant I services until mid Fiscal Year 2003-2004, therefore a budget change is required. Signature ~ City Manager: ~ Lt Date: ~/~~ Signature / Mayor: Date: Signature Posted By: Date: Signature \\Snapserver\pccommon~orms\budget change form.xls 1 of I ATTACH M E NT 4