HomeMy WebLinkAboutContracts & Agreements_169-2004_CCv0001.pdf AGREEMENT TO FURNISH CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
This Agreement is made and entered into this 2nd day of November,2004 by and between the
City of Redlands, a municipal corporation (hereinafter "City") and R3 Consulting Group, Inc.,
hereinafter ("Consultant").
In consideration of the mutual promises contained herein, City and Consultant agree as
follows:
ARTICLE I - ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to perform consulting services for a Solid Waste Rate Study
(the "Services") located at 35 Cajon Street, Suite 15A, Redlands, California.
1.2 The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the Services
to City at a level of competency presently maintained by other practicing professional
consultants in the industry providing similar types of services.
ARTICLE 2 - SERVICES OF CONSULTANT
2.1 The specific Services which Consultant shall perform are described in Attachment "A,"
entitled "Scope of Services," which is attached hereto and incorporated herein by this
reference.
2.2 Consultant shall comply with all applicable Federal, State and local laws in its performance
of the Services including,but not limited to,all California Labor Code requirements and non-
discrimination laws including the Federal Americans with Disabilities Act and the state's Fair
Employment and Housing Act.
2.3 Consultant acknowledges and agrees that if it violates the provisions of the California Labor
Code relating to prevailing wage that City may withhold payments to Consultant pursuant
to Labor Code sections 1726, 1727 and 1771.6.
2.4 Consultant agrees that if it engages a subcontractor to perform any of the Services,
that
Consultant shall comply with California Labor Code sections 1775 and 1777.7, and shall
provide the subcontractor with copies ofthe provisions of sections 1771, 1775, 1776, 1777.5,
1813 and 181.5 of the Labor Code. Consultant acknowledges that the statutory provisions
for penalties for failure to comply with state wage and hour laws and to pay prevailing wages
may be enforced by the City pursuant to Labor Code sections 1775 and 1813.
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ARTICLE 3 - RESPONSIBILITIES OF CITY
3.1 City shall make available to Consultant information in City's possession that is relevant to
the performance of Consultant's Services.
3.2 City will make provision for Consultant to enter upon City-owned property to perform the
Services.
3.3 City designates Gary Van Dorst to act as its representative with respect to the Services.
ARTICLE 4 -_PERIOD OF SERVICE
4.1 Consultant shall perform the Services in a prompt and diligent manner and in accordance
with the schedule set forth in Attachment "B," entitled "Project Schedule."
ARTICLE 5 -PAYMENTS TO CONSULTANT
5.1 The total compensation for Consultant's performance of the Services shall not exceed the
amount of$79,530. City shall pay Consultant on a time and materials basis in accordance
with the estimated amounts identified in Attachment"C" entitled"Project Cost," and based
upon the hourly rates shown in Attachment "D," entitled "Fee Schedule ."
5.2 Within ten days following the end of each month Consultant shall submit an invoice to City
indicating the portion of the Services performed, who performed the Services and costs
incurred. Payments by City to Consultant shall be made within 30 days after receipt and
approval of Consultant's invoice,by warrant payable to Consultant.
5.3 All notices, bills and payments shall be made in writing and may be given by personal
delivery or by mail. Notices,bills and payments sent by mail shall be addressed as follows:
Cily Consultant
Gary Van Dorst Richard Tagore-Erwin, Principal
Municipal Utilities Dept. R3 Consulting Group, Inc.
PO Box 3005 4811 Chippendale Drive, Suite 902
35 Cajon St., Suite 15A Sacramento, CA 95841
Redlands, CA 92373
When so addressed, such notices shall be deemed given upon deposit in the United States
Mail. Changes may be made in the names and addresses of the person to whom notices and
payments are to be given by giving notice pursuant to this section.
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ARTICLE 6 - INSURANCE AND INDEMNIFICATION
6.1 Consultant's Insurance to be Primary
All insurance required by this Agreement shall be maintained by Consultant during its
performance of the Services and shall be primary with respect to City and non-contributing
to any insurance or self-insurance maintained by City. Consultant shall not commence the
Services unless and until all required insurance listed below is obtained by Consultant and
Certificates of Insurance and endorsements evidencing such insurance are presented to City.
All insurance policies shall include a provision prohibiting cancellation, except upon thirty
(30) days prior written notice to City.
6.2 Workers' Compensation and Employer's Liability
A. Consultant shall secure and maintain Workers' Compensation and Employer's
Liability insurance throughout its performance of the Services in amounts which
meet statutory requirements with an insurance carrier acceptable to City.
B. Consultant expressly waives all rights to subrogation against City,its elected officials
and employees for losses arising from work performed by Consultant for City by
expressly waiving Consultant's immunity for injuries to Consultant's employees.
Consultant agrees that its obligation to indemnify, defend and hold harmless
provided for in this Agreement extends to any claim brought by or on behalf of any
employee of Consultant. This waiver is mutually negotiated by the parties. To the
extent any of the damages referenced herein were caused by or resulted from the
concurrent negligence of City, its agents or employees, the obligations provided
herein to indemnify,defend and hold harmless are valid and enforceable only to the
extent of the negligence of Consultant, its officers, agents and employees.
6.3 Comprehensive Insurance. Consultant shall secure and maintain in force
throughout its performance of the Services comprehensive general liability insurance with
carriers acceptable to City. Minimum coverage of one million dollars ($1,000,000) per
occurrence and two million dollars ($2,000,000) aggregate for public liability, property
damage and personal injury is required. Consultant shall obtain an endorsement that City
shall be named as an additional insured.
6.4 Professional Liability Insurance. Consultant shall secure and maintain professional liability
insurance throughout its performance of the Services in the amount of one million dollars
($1,000,000) per occurrence and two million dollars ($2,000,000)annual aggregate.
6.5 Business Auto Liability Insurance. Consultant shall have business auto liability coverage,
with minimum limits of one million dollars ($1,000,000) per occurrence, combined single
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limit for bodily injury liability and property damage liability. This coverage shall include
all Consultant-owned vehicles used in connection with its performance of the Services, hired
and non-owned vehicles,and employee non-ownership vehicles. Consultant shall obtain an
endorsement that City shall be named as an additional insured.
6.6 Assignment and Insurance Requirements.. Consultant is expressly prohibited from assigning
any of the Services without the prior written consent of City. In the event of mutual
agreement between the parties to assign a portion of the Services, Consultant shall add the
assignee as an additional insured to Consultant's insurance policies and provide City with
insurance endorsements prior to any Services being performed by the assignee. Assignment
does not include printing or other customary reimbursable expenses that may be provided
in this Agreement.
6.7 Hold Harmless and Ind
------ emnification. Consultant shall defend,indemnify and hold harmless
City, its elected officials, officers, employees and agents from and against any and all
actions,claims, demands, lawsuits, losses and liability for damages to persons or property,
including costs and attorney fees,that may be asserted or claimed by any person,firm,entity,
corporation, political subdivision or other organization arising out of or in connection with
Consultant's negligent and/or intentionally wrongful acts or omissions in performing the
Services;but excluding such actions,claims,demands,lawsuits and liability for damages to
persons or property arising from the sole negligence or intentionally wrongful acts of City,
its officers, employees or agents.
ARTICLE 7 -..GENMRAL CONSIDERATIONS
7.1 In the event any action is commenced to enforce or interpret any of the terms or conditions
of this Agreement the prevailing party shall, in addition to any costs and other relief, be
entitled to the recovery of its reasonable attorneys' fees.
7.2 All documents,records,drawings,designs,cost estimates,electronic data files,databases and
other documents developed by Consultant pursuant to this Agreement and any copyright
interest in such documents shall become the property of City and shall be delivered to City
upon completion of the Services,or upon the request of City. Any reuse of such documents
and any use of incomplete documents will be at City's sole risk.
7.3 Consultant is for all purposes an independent contractor. Consultant shall supply all tools
and instrumentalities required to perform the Services. All personnel employed by
Consultant are for its account only, and in no event shall Consultant or any personnel
retained by it be deemed to have been employed by City or engaged by City for the account
of or on behalf of City.
7.4 Unless earlier terminated, as provided for below, this Agreement shall terminate upon
completion and acceptance of the Services by City.
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7.5 This Agreement may be terminated by the City, without cause, by providing five (5) days
prior written native to Consultant of intent to terminate.
7.6 if this Agreement is terminated by City, an adjustment to C nsultan
t or untrfcrmd Services,as compensation nd
be made;.but no amount shad be allowed far anticipated.profs pe
any payment due Consultant at the time of terminationlmay be ustec to the extent of any .
additional casts to City occasioned by any default by Consultant.
7.7 Upp
on revel t of a termination notice,Consultant shall immediately discontinue
a available.to
and within five (5) days:of the date of such notice, deliver or otherwise
city,copies (in both hard copy end electronic farm,where applummari sf and suchany data, dathesi�r
calculations, drawings, specifications, repasts, estimates,
information and materials as may have been accumulated by Cansultan#c m feted up performing�1
Services. Consultant shall be compensated on a pro-rata basis for workp
notice of termination.
Consultant shill maintain books and accounts of all payroll costs and expenses
ses incurred
far
7.8 Con
performing the Services. Such books shall be available at all rea
examination by City at the;office of Consultant.
A ement,including the attachments incorporated herein by reference,contained representsthe
7.9 to the matters This Agreement,
entire agreement and understanding between
proposals mems with regard to the subject matter
and any prior negotiations,
hereof between City and Consultant are sup erbsedd Councy this il o Citynand siigned by City and
this Agreement shall be in writing,approved y City
Consultant.
7.10 This Agreement shall be governed by and construed in accordance with the laws Of the State
of California.
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IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have
signed in confirmation of this Agreement.
CITY OF REDLANDS R3 CONSULTING GROUP, INC.
By: ✓' By:
US"Ixuvw RICHARD TAGORE-ERWIN
Mar Principal
ATTEST:
s
rty Ierk, City o fllands
Mgvandorstkagreements\R3 Groupll 1.2 agreement 6
AGREEMENT TO FURNISH
CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
ATTACHMENT A
SCOPE OF SERVICES
AGREEMENT TO FUR WORATE
SITUDY RVICES
FOR A SOLIDASTE
Attachment A
Scope of Services
Task 1 Review Closure and post-Closure Funding
Calculations
objective — To ensure the City has adequately calculated closure and post-closure funding
costs.
1.1 Review Current Calculations and Regulatory Funding Requirements
The City's available engineer's estimates for closure and post-closure funding will t
ermentswill be reviewedto determine if he funding
regulatory require
Federal and state
calculations were completed in accordance with regulatory requirements. The wilel alsongineebe
r's
estimates in terms of changes in the projected landfill capacity and closure date
reviewed.
1.2 Test Calculations and Recalculate Funding Requirements
Funding calculations will be tested to ensure that the closure and poover-fundingst-closureof closure
funding
requirements will be met. This will be done for both under-funding and
and post-closure activities.
1.3 Closure and post-Closure Memorandum
results of is Task. The cuA memorandum will be prepared to sumchaneinclude recommendations, if any, on gesein fundingthrequirements, and ocallationwisll
supporting the recommended changes. The results of this Task will be incorporated into Tasks 3
and 4.
Deliverables for Task I
• Review available reports on closure and post-closure funding estimates and calculations;
• Incorporate results of Task 1 into the Financial Plan (Task 3) and the Rate Model (Task 4);
and
• Provide three (3) copies of the memorandum summarizing closure and post-closure
calculations.
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Task 2 Review Existing Conditions and Documents, and
Kick-Off Meeting
Objective — To provide a common understanding of the project objectives, confirm the
project approach, schedule and budget, and discuss data availability.
2.1 Document Request and Data Collection
The study will be initiated by conducting the following steps:
• Prepare and submit a detailed document request;
• Collecting and reviewing current City data, information and reports, including
annual operating and capital buageof,Coaecfion,aMa
snengineer's funding estimates, Pster Plan, and demographic
data;
• Reviewing the city's current rate policies and procedures; and
• Based upon the results of the initial data review, an additional data request list may
be prepared to facilitate a project Kick-off Meeting with City Staff.
2.2 Kick-Off Meeting
The purpose of the Kick-off Meeting will be to review and confirm the following:
Project communication protocol and contacts;
■ Project objectives and current City policies;
■ Data availability;
■ City Council, City Staff, and community involvement;
■ The manner in which the project results will be presented to the City Council,
stakeholders, and the community;■
Project management and administration details, including:
o timing of regular communications with the City project manager;
o schedule of deliverables;
o project reporting, invoicing, and documentation standards; and
• Additional data needs and any other key issues.
These discussions will help ensure a successful project by clarifying the objectives and
expectations of the City. The Kick-off Meeting will focus on reviewing and confirming
these topics. These discussions will help refine the analysis and ensure that the project
is properly executed to meet the City's objectives. A brief memo will be prepared to
summarize the issues reviewed and any modifications to the tasks or schedule.
2.3 Review City Facilities and Interview Staff
Following the Kick-off Meeting, a preliminary staff interview schedule will be developed.
The schedule will be submitted to the City for review along with a "time and materials
utilization" questionnaire. A tour of the City's solid waste facilities, observations of daily
operations, and interviews with key solid waste staff will be conducted. Interviews and
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questionnaires will initially be limited to supervisory staff and, after an instructional
process, the questionnaires will be distributed to the supervisory staff for completion.
The data received from the questionnaire will be tabulated and summarized. The
tabulated data and summary will be submitted to the City's representative for review and
comment. Any comments will be incorporated as appropriate, and the data will be
finalized. The results of the questionnaire data will provide a basis for the cost allocation
methodology.
Field observations and interviews will cover maintenance, collection operations
(residential curbside, multi-family, commercial, roll-offs), disposal operations, customer
service and billing, and management and administration.
The tour and interview schedule will be coordinated with the City's project manager to
ensure the following: 1) the tour does not disrupt ongoing operations; 2) key staff are
available; and 3) project staff are available to observe the full range of the City's daily
operations.
Deliverables for Task 2
• Data and document request list submitted to the City;
• Document review;
■ On-site facilities and operations review;
• Staff interviews;
■ List of jurisdictions and criteria for the Rate Benchmarking Study (Task 5);
■ Detailed project schedule in a Gantt chart format;
■ Report and presentation formats;
■ Kick-off meeting agenda;
■ Attend Kick-off Meeting to review and confirm the Scope of Services, Schedule,
Budget, Communication Protocol, etc;
• Kick-off meeting summary memorandum;
• Develop of a preliminary and final staff questionnaire;
• Tabulate of questionnaire results and submittal to City representative; and
■ Develop preliminary cost allocation methodology.
Task 3 Determine Rate Revenue Requirements
obiective — To identify reserve requirements, prepare revenue projections, and develop
a long-range financial plan.
3.1 Review and Evaluate Expenditures
This Task will utilize the City's current expenditure forecast of its solid waste operation.
Costs related to capital improvements, equipment replacement, service to new
customers, projected debt service payments and related costs will be evaluated to
determine if the City's projections appear sufficient for rate adjustment purposes.
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3.2 Review and Evaluate Revenues
Using the current forecasts, the projected revenues will be evaluated against the
expenditures to estimate the sufficiency of the current rate structure. Customer growth
and other factors affecting annual revenue will also be considered. This task is essentially
a revenue requirement analysis that defines the total revenue needed in the short,
medium and long-term planning periods. Please note that cost of service issues are
addressed separately in the rate structure analyses in Task 4.
3.3 Review and Evaluate Reserves
This analysis will review the effects of rate adjustments and revenue and expenditure
forecasts on the City's reserve fund balances and target reserve levels. This will include
reviewing the landfill closure reserves and any bond covenant requirements to ensure the
City is sufficiently contributing to these reserves. Finally, rationales for each target
reserve will be provided, and the purpose of the reserve will be defined based on current
City policies and industry practices.
3.4 Prepare Operating Expenditure Projections
The purpose of this task will be to prepare projections of the City's operating
expenditures. This task will begin by verifying the City's historical expenditures along with
information developed on future operations.
These projections will include the following cost components:
■ Landfill operating expenditures;
■ Collection operating expenditures broken down by service class;
• Services and supplies;
■ Fixed asset expenditures;
■ Contributions to closure and other reserve funds;
• Capital costs not included in the capital project expenditures; and
■ Debt service on new revenue bonds or other long-term debt.
In developing these projections, meetings with appropriate City Staff will be held to
review the historical expenditures and discuss the assumptions, conditions and trends
affecting the projections. The format for these projections will correspond to the City's
existing accounting records, but will also incorporate any modifications discussed in the
Kick-off Meeting. A "cash-basis" accounting system will be assumed to be used,
whereby expenditures will be included in the fiscal year in which they occur.
3.5 Prepare Budget Revenue Projections
An analysis similar to the expenditure projections will be prepared for the revenue
projections from City operations. A detailed review of the projected revenue by customer
class will be performed. This is critical due to the fact that changes in service levels
resulting from providing variable rates for residential customers and bundled
commercial rates that provide incentives to participate in recycling programs will
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have a significant impact on overall revenue generation. In simple terms, as more
residents and businesses participate in recycling programs and elect to downsize their
garage containers, the City's revenue will decrease.
The analysis of projected revenue will include such factors as planned residential and
commercial growth, current and planned diversion programs, potential import and export
activities, fluctuations in self-haul tonnages, interest income, bond proceeds, grants, sale
of assets, carry over operating reserves from the previous year, etc.
Detailed footnotes will be used to describe the sources of data, assumptions and
calculations used to project each of these other revenue sources. These projections will
be reviewed with City Staff and revisions will be made before incorporating these
projections into the overall revenue projections.
3.6 Prepare Capital Project Expenditure Projections
Based on the City's capital improvement plans and engineering documents, 5- and 10-
year projections will be prepared. These projections will provide details of the capital
projects to ensure all costs and the timing of each construction phase are clearly
delineated in the projections.
The City's capital improvement plans and costs will be reviewed to ensure that
reasonable and appropriate projections are made for 1) the level of cost estimate
accuracy (i.e., whether costs are order-of-magnitude, reconnaissance-level, budget-level,
etc.), 2) contingencies, 3) design and construction management costs, and 4) phasing of
capital expenditures.
Projections of future debt-service will be addressed in the various financing scenarios
developed based on our analysis and direction from City Staff. If necessary, estimates of
the costs related to issuing new debt (issuance costs, legal and underwriter charges,
discounts, coverage reserve fund requirements, etc.) will be provided.
3.7 Prepare Fiscal Plan
A memorandum summarizing the approach to Tasks 3.1 —3.6 will be prepared, including
an explanation of all assumptions, sources of data, and findings and conclusions. Once
the City has reviewed the memorandum, a meeting with City Staff will be conducted to
discuss comments and recommended improvements or adjustments. Upon agreement
from all parties on changes to the projections (if any), the changes will be incorporated
into the financial plan.
The financial plan will address the following issues:
■ Revenue requirements and expenditure projection requirements developed in
Tasks 3.1 through 3.6;
• Current and projected reserve fund levels;
• Capital funding requirements (to fund CIP project costs);
■ Appropriate target reserve fund levels that the City maintains. If such target fund
levels do not currently exist, they will be developed as part of this analysis; and
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• Any changes in closure and post-closure funding requirements as a result of Task
1.
This financial plan will be compatible with the City's accounting formats and budgets,
show transfers to and from the various reserve funds, and show beginning and ending-
year fund balances. An evaluation using a rate-stabilization methodology will be
preformed, along with the overall structure of the financial plan, to provide a greater
ability to minimize future rate impacts. The financial plan will also provide key input data
as part of Task 4.
The results from the financial plan will be incorporated into the Draft and Final Reports
discussed in Task 5.
Deliverables for Task 3
■ Revenue projections;
■ Expenditure projections;
• Capital improvement project projections;
■ Meeting to review and discuss Task 3 findings and conclusions;
■ Financial plan memorandum; and
■ Financial plan.
Task 4: Develop Rate Structures and Rate Model
4.1 Prepare Rate Options
The current rate structure will be reviewed and rate structure options will be identified and
presented to City Staff. The options will be prepared with pros and cons of each, and will
include a discussion of billing for extra services that are not currently billed. The options
will be provided in a memorandum format.
After City Staff has reviewed and discussed the options, a model will be developed that
evaluates several rate options that meet the revenue requirements of the City and the
projections and financial plan developed in Task 3.
The primary objectives of the analysis of rate options include the following:
■ Equitably allocate costs among and between customer classes;
• Provide incentives for all customers to participate in recycling programs;
■ Meet the revenue requirements;
• Provide for stabilization of long-term rates;
■ Minimize year-to-year rate fluctuations;
■ Maintain adequate cash reserves; and
• Comply with legal requirements of service rates (Prop 218).
4.2 Cost of Service Analysis
This Task will identify how and why costs should be allocated to each customer class,
resulting in a re-evaluation of the rates that each customer class should be paying, as
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compared to the current rate structure. A determination will be made whether there are
any "cross-class" subsidies occurring. This analysis will detail how various costs, such as
collection vehicle maintenance, labor costs, employee benefits, landfill operations,
equipment and capital improvements, etc., are allocated to each customer class.
Discussions of the reasons for each allocation will be presented that provides the final
cost allocations under the current rate structure. The result will indicate how the current
rates compare to those calculated under the cost of service analysis.
Direct and indirect costs will then be allocated to customer classes, and finally within
customer classes (to the extent data are available and allows such allocation). Additional
statistical results will also be prepared for discussion purposes, including the costs per
ton for collection, and capital and operating costs for residential, commercial and multi-
family customers.
Special attention will be given to certain types of customers, such as multi-family housing
(apartments) and commercial businesses, to examine the equity of current charges. If an
appropriate allocation factor over an entire class cannot be developed due to a lack of
data, a program for collecting the necessary data and adjusting the rates once the data
are available will be identified.
4.3 Rate Structure Analysis
Once the cost-of-service analysis has been completed, an analysis of alternative rate
structures will be prepared. Due to the potential to phase-in the new rate structure, the
alternative rates resulting from the rate structure analysis will be compared to 1) the true
cost of service rates, and 2) the current rates.
In addition, the rate structures and City charges that are (or may be) incorporated into the
rates will be reviewed for conformity with Prop. 218 requirements. ff the City proposes
subsidies between or among customer classes, or including costs not related solid waste
services in the rates or rate structures, a legal advisor will be consulted, as necessary.
Several rate structure alternatives can be evaluated. These alternatives will be
discussed and refined with City Staff during the Kick-off Meeting to confirm the approach
to this task. These may include the following:
• Separate Collection Versus Disposal Rates —The rate structure will be
segregated into separate charges for collection and disposal services and shown
separately for residential, commercial and multi-family customers.
• Volume Based Rates to Provide Recycling Incentives —A bundled rate will be
developed such that recycling is provided at no additional charge, and residential
and commercial customers may pay a lower overall rate by downsizing garbage
containers and/or decreasing the frequency of collection (for non-residential
customers only). The percentage of customers assumed to select each container
size will be based on current data, experiences in similar communities and local
demographics. Under this task, several alternative rate structures will be provided
based on different container size allocations, and with implementation plans that
will outline how the rates may be adjusted after the first year of operationa7l
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experience. These rates will be prepared with a conservative approach to ensure
that the City will not experience a net decline in projected revenues.
As part of this task, alternative rate structures will also be presented in terms of billing
options that would be used for rate alternatives. For example, customer bills that show a
breakdown of collection and disposal costs on their bills would better communicate to
customers which parts of their service charge is changing.
4.4 Financial Model
Each of the components in Tasks 4.1 through 4.3 will be developed with the intent that
these components will be used to construct a rate projection model which the City will
then be able to use effectively to evaluate changes in expenditures, revenues and capital
project costs, including changes in closure and post-closure funding calculations (Task
1). This model will be developed using Excel and Visual for Basic Applications (VBA)
programming language and will include the following:
■ Interactive segments wherein changes made to financial calculations are
automatically updated on connected graphs and charts;
• Sensitivity analysis section to allow a variety of variables (up to 100) to be
analyzed as single and multiple components;
• A "historically proactive" methodology to continually reevaluate annual
projections based on the cumulative results of each annual reporting period;
■ Specific "drop down" menus developed for the City to allow for ease of use by
City staff.
■ Imbedded footnotes in cells to identify the sources of data and methodologies
used to develop the new data;
■ Color-coded fonts to indicate the items that should be modified/ updated
annually; and
• Other components as requested by the City.
4.5 Rate Model Documentation
The final rate model will be provided electronically and documented with a manual that
explains the functions of the model.
4.6 Recommendations
A memorandum summarizing the results of Task 1, and Tasks 4.1 —4.5, will be prepared,
including the net revenue impact of the various rate structures, the ease of
implementation, legality, phasing, and if identified services are not or should not be
included in the rate structure.
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4.7 Coordinate Rate Structure with Billing Services
Any new rate structures resulting from Task 4 will be coordinated with the City's billing
services. This will be done to ensure that the City's billing services can implement the
recommended rate structures in a manner and schedule approved by the City.
Deliverables for Task 4
• Meeting with City staff to discuss rate options and the rate model;
• Memorandum on rates and rate structures, including:
o Rate options;
o Cost of service analysis;
o Rate structure analysis;
o Legal review and advice, if necessary;
■ Rate model and rate model documentation; and
■ Training session with City Staff on the rate model.
Task 5 — Benchmark Comparative Rates
Objective— To allow the City to compare its current and projected rates to those
communities providing similar services.
A benchmark survey will be prepared that will provide a side-by-side comparison of rates
in communities with similar features, such as the scope of services provided, public vs.
private operations and ownership of facilities, collection methods, customer service and
billing operations, disposal and processing facilities and rate structures. To the extent
possible, currently available benchmark surveys will be used. If additional communities
are needed to augment the available data, this will be coordinated with the City.
In addition to the items listed above, additional background information on the rates of
other communities will be included, such as:
■ When were rates last updated, and is an increase planned soon?
■ What is the size of the community, and is service provided by municipal or
privately contracted entities?
■ What level of service is provided?
• What magnitude of capital costs has the community incurred, or will be incurring?
If needed, an additional telephone survey will be conduced to solicit these data from
additional communities to provide a comparison of Redlands' rates to other communities.
The results of this task will be summarized in a memorandum and incorporated into Task
S.
Deliverables for Task 5
• Incorporate data from available current benchmark surveys; A 9
• List of additional comparable communities, if necessary;
• List of benchmark features;
• Draft and Final Benchmark survey form; and
■ Five (5) copies of the memorandum summarizing benchmark results.
Task 6: Meetings, Reports and Presentations
Objective — To clearly document the work performed on the project, provide specific
recommendations, and present the information to decision-makers in the
City of Redlands.
6.1 Meetings with City Staff
Meetings will be convened during the course of the study to discuss issues and review
initial work products. A more detailed schedule for these meetings will be discussed in
the Kick-off Meeting.
6.2 Presentations
Public Meetings—Two (2) Public Meetings to present results of the study results and to
solicit input from the Public Works Commission (or citizens' group) and the general
public.
City Council—Two (2) meetings with City Council to present results of the study results.
For the Public Meetings and Presentations to City Council, appropriate presentation
materials for the four (4) public presentations will be prepared. This will be coordinated
with City Staff to outline and develop these materials, and all materials will be discussed
with staff before finalizing them. The presentation materials will be in PowerPoint, and
will include:
• Charts and graphs summarizing trends, costs, productivity standards, customer
bills, and similar issues;
■ Comparisons showing current versus proposed service charges and alternatives
for all rate classes and customers; and
• Findings, including recommendations and results from Tasks 1 through 5 above.
6.3 Final and Draft Reports
A draft and final study report to document the assumptions, methodologies, budget
projections, sources of data, recommendations and implementation plans will be
prepared. Tables, graphs, and charts will be used as appropriate, but the emphasis will
be on providing a clear, concise and understandable report. An executive summary will
present the purpose and results of the report in no more than three (3) pages.
Draft Report -- Eight (8) copies of the Draft Report will be provided for the City's review
and comment. The City will determine when and how this Draft Report will be reviewed
by the public and/or City Council and when draft materials are presented to the public.
A - 10
Final Report -- The City will compile its comments into one (1) copy of the Draft Report
reflecting all the City's comments. Then, once the City has completed the review of the
Draft Report, those changes will be incorporated into a Final Report, and fifteen (15)
copies plus a camera-ready version of the Final Report will be provided.
Deliverables for Task 6
■ Five (5) Meetings with City Staff;
■ Two (2) Public Meetings:
■ Eight (8) copies of the Draft Report ;
■ Two (2) Presentations to City Council;
■ Twenty (20) sets of color handout materials for each Public Meeting and
Presentation;
• Fifteen (15) copies of the Final Report, including one (1) camera ready copy;
■ Two (2) copies of the computer model on an executable CD; and
■ Two (2) hard copes of the computer model and/or training manual and
documentation.
Note: The City may direct the Consultant to provide related services outside of those in
Attachment "A", Scope of Services, on a time and material basis, based on the
hourly rates in Attachment "D", Fee Schedule.
A - 11
AGREEMENT TO FURNISH
CONSULTING SERVICES
FOR A SOLID WASTE RATE STUD(
ATTACHMENT B
PROJECT SCHEDULE
AGREEMENT TO FURNISH CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
Attachment B
Project Schedule
The project schedule below shows the overall project schedule, including major task milestones.
A detailed schedule will be prepared and provided to the City showing the schedule for
deliverables, as part of Task 2, for Tasks 3,4,5 and 6..
DESCRIPTION OF TASK COMPLETION DATE
Notice to Proceed by City November 2004
Task 1: Review Closure and Post-Closure Funding Calculations December 2004
Task 2: Review Existing Conditions and Documents and Kick-off December 2004
Meeting
Task 3: Determine Rate Revenue Requirements To be determined
Task 4: Develop Rate Structures and Rate Model To be determined
Task 5: Benchmark Comparative Rates To be determined
Task 6: Meetings, Reports, and Presentations To be determined
Notes:
1, The initial project schedule is subject to change with written approval and direction
by the City, due to development of data base input for rate analysis and the rate
model, and due to implementation of selected rate structure for billing customers.
2, Tasks 3-6 will be determined under Task 2.
3. All tasks under this Agreement will be completed no later than December 31,
2005.
B - 1
AGREEMENT TO FURNISH
CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
ATTACHMENT C
PROJECT COST
AGREEMENT TO FURNISH CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
Attachment 0 C
Project Costs
Hours'
TASK DESCRIPTION Labor
Expenses
1 Review Closure and Post-Closure Funding 40 $5,080
Calculations
2 Review existing Conditions and Documents, 55 $6,990
and kick-off Meeting
3 Determine Capital and Reserve Requirements 126 $16,580
4 Develop Rate Structures and Rate Model 238 $31,330
5 Benchmark Comparative Rates 14 $1,590
6 Meeting, Presentations and Reports 128 $15,640
Total 601 $77,210
N
a
R.
R. S. G. Admin.
TASK DESCRIPTION Hutchinson Harriman Clumpner Support
Erwin
1 Review Closure and Post-Closure Funding
Calculations 4 32 4
2 Review existing Conditions and Documents,
and kick-off Meeting 32 16 16 7
3 Determine Capital and Reserve Requirements 32 72 16 6
4 Develop Rate Structures and Rate Model 26 156 30 10
5 Benchmark Comparative Rates 8 2 4
6 Meeting, Presentations and Reports 80 16 8 24
Total 182 292 40 32 55
' The project hours by staff are detailed in the second table.
C - 1
AGREEMENT TO FURNISH
CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
ATTACHMENT D
FEE SCHEDULE
AGREEMENT TO FURNISH CONSULTING SERVICES
FOR A SOLID WASTE RATE STUDY
Attachment D
Fee Schedule
Project Team Member Hourly Rate
Richard Tagore-Erwin $140
Ric Hutchinson $135
Steve Harriman $135
Greg Clumpner $130
Constance Hornig $180
Administrative Support $50
D - 1