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HomeMy WebLinkAbout1994-07-19; City Council; 12793; CONSULTANT SERVICES AGREEMENT WITH HILTON FARNKOPF & HOBSON!ZG a 2 z G f- 0 a 6 2 ;> 0 0 CbY OF CARLSBAB - AGEWA BILL - - AB # jdi77 TITLE: Dl MTG7/19/94 CONSULTANT SERVICES AGREEMENT CI DEPT. CSD WITH HILTON FARNKOPF & HOBSON GI RECOMMENDED ACTION: Adopt Resolution No. 99-2 1% authorizing the City Manager to execute a consultar agreement with Hilton Farnkopf & Hobson to review and update the existing solid wast contract and rates. ITEM EXPLANATION: In January 1992, the City of Carlsbad entered a contract with Hilton Farnkopf & Hob to develop a solid waste services rate index process to establish and evaluate appro waste services rates. HFH and staff recommended, and City Council adopted, a mt which established a base year rate based on actual cost of services, allowing for a level of profit. In subsequent years, rates will be evaluated by chanfles in designat i.e. the Producer Price Index. Periodically, the base rate is reviewed to assur reasonable. City Council also authorized an amendment to the contract with HFH to review C Management (CWM) financial records and recommend the 1992-93 base year I services rates. The rates established through this analysis were adopted in Januaq updated with the indices in July 1993. It has been two years since the last analysis of CWM’s financial records and a numk have arisen which staff believe merit review. While Carlsbad’s residential solid wa rates are comparatively low, the commercial rates are relatively high. The propoi waste in the single family residential waste stream was initially estimated as the progr and no actual data was available. Since then actual program data is available, and assessment of costs can be made FISCAL IMPACT: The total amount of this contract is $34,000. CWM has agreed to share these costs the City’s share is $17,000. Funds are available in the FY 1993-94 Solid Waste Entc EXHIBITS: 1. Resolution No. ’?q-$@- 2. Consultant Services Agreement with Hilton Farnkopf & Hobson 3. Engagement Letter from Hilton Farnkopf & Hobson. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 . 24 25 26 27 28 EXHIBI' (@ '3, RESOLUTION NO. 94-212 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARL CALIFORNIA, AUTHORIZING EXECUTION OF A CONSULTANT SER AGREEMENT WITH HILTON FARNKOPF & HOBSON WHEREAS, Coast Waste Management provides solid waste collecl the City of Carlsbad; and WHEREAS, Coast Waste Management and the City of Carlsbad ag services are necessary to review and update the existing solid waste services cont and WHEREAS, the firm of Hilton Farnkopf & Hobson has been selec said consuttant services; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the C as follows: 1. 2. The above recitations are true and correct. The Agreement for Consultant Services and the Enge between the City of Carlsbad and Hitton Farnkopf & Hobsc hereby approved. 3. The City Manager is hereby authorized to execute said behalf of the City. PASSED, APPROVED AND ADOPTED by the City Council of the C at its regular meeting held on the 19th day of JULY , 1994, by the to wit: AYES: Council Members Lewis, Stanton, Kulchin, Nyga< NOES: None ABSENT: None ATTEST: h 7p ALEMA L. RAUTENKRANZ, City Clerk (SEAL) LXHLB. 0 0 AGREEMENT Augu day of BW THIS AGREEMENT, made and entered into as of the 2nd by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter to as "City", and Hilton Farnkopf & Hobson, hereinafter referred to as "Consul RECITALS City requires the services of a qualified consultant to provide a review and of the existing solid waste services contract and rates; and Consultant posse: necessary skills and qualifications to provide the services required by the City; NOW, THEREFORE, in consideration of these recitals and the mutual cc contained herein, City and Consultant agree as follows: 1. CONSULTANT'S OBLIGATIONS The Consultant shall provide the services required to complete the F accordance with the attached Engagement Letter submitted by the Consultant a June 28, 1994. The term of the Agreement is from August 1, 1994 to Decer 1994. 2. CITY OBLIGATIONS The City shall provide appropriate direction and serve as liaison to the Cc Ill Ill Re\ 0 0 3. PROGRESS AND COMPLETION The work under this contract will begin within ten (10) days after re( notification to proceed by the City and be completed within one hundred eigh days of that date. Extensions of time may be granted if requested by the Consult agreed to in writing by the Community Services Director. The Community 5 Director will give allowance for documented and substantiated unforeseeal unavoidable delays not caused by a lack of foresight on the part of the ConsL delays caused by City inaction or other agencies' lack of timely action. 4. FEES TO BE PAID TO CONSULTANT The total shall not exceed the fee payable according to Paragraph 6, "Pa) Fees," and shall be $34,000.00. No other compensation for services will be except those items covered by supplemental agreements per Paragraph 8, "Ch: Work." 5. DURATION OF CONTRACT This agreement shall extend for a period of six months from date The contract may be extended for additional one (1) month periods, bas< satisfactory performance and the City's needs. 6. PAYMENT OF FEES Payment of fees shall be made within thirty (30) days after approva documents by the Community Services Director. Two (2) copies of the in! 2 Rev 0 0 payment shall be submitted to the Community Services Department, 405 Oak Carlsbad, California 92008. 7. FI NAt SUBMISSIONS Within fifteen (15) days of completion and approval of the services, the Cr shall deliver to the Community Services Director all final documents, which appropriately signed. 8. CHANGES IN WORK If, in the course of the contract, changes seem merited by the Consultant or and informal consultations with the other party indicate that a change in the c( of the contract is warranted, the Consultant or the City may request a change in Such changes shall be processed by the City in the following manner: A letter the required changes shall be forwarded to the City by Consultant to inform thc proposed changes along with a statement of estimated changes in charge: schedule. A supplemental agreement shall be prepared by the City and app the City according to the procedures described in Carlsbad Municipal Codc 3.28.172. Such supplemental agreement shall not render ineffective or i unaffected portions of the agreement. 9. COVENANTS AGAINST CONTINGENT FEES The Consultant warrants that their firm has not employed or retained any 3 Re\ 0 0 or person, other a bona fide employee working for the Consultant, to solicit or se agreement, and that Consultant has not paid or agreed to pay any company 01 other than a bona fide employee, any fee, commission, percentage, brokerage or any other consideration contingent upon, or resulting from, the award or n this agreement. For breach or violation of this warranty, the City shall have th annul this agreement without liability, or, in its discretion, to deduct from the a' price or consideration, or otherwise recover, the full amount of such fee, con percentage, brokerage fees, gift, or contingent fee. IO. NONDISCRIMlPJATlON CLAUSE The Consultant shall comply with the state and federal laws nondiscrimination. 11. TERMINATION OF CONTRACT In the event of the Consultant's failure to prosecute, deliver, or perform th provided for in this contract, the City may terminate this contract for nonperfor notitjling the Consultant by certified mail of the termination of the Consul consultant, thereupon, has five (5) working days to deliver said documents the City and all work in progress to the Community Services Director, The C Services Director shall make a determination of fact based upon the document' to City of the percentage of work which the Consultant has performed whicf and of worth to the City in having the contract completed. Based upon that reported to the City Manager, the Manager shall determine the final payrr contract . 4 R( 0 0 12. - DISPUTES If a dispute should arise regarding the performance of work under this agi the following procedure shall be used to resolve any question of fact or interpret, otherwise settled by agreement between parties. identified as a part of a dispute among persons operating under the provision contract, shall be reduced to writing by the principal of the Consultant or Community Services Director. A copy of such documented dispute shall be fo to both parties involved along with recommended methods of resolution which ~t of benefit to both parties. The City community Services Director, or principal ri the letter, shall reply to the letter along with a recommended method of resolutio ten (IO) days. If the resolution thus obtained is unsatisfactory to the aggrieved letter outlining the dispute shall be forwarded to the City Council for its resolution * the Office of the City Manager. The City Council may then opt to consider the c solution to the problem. In such cases, the action of the City Council shall be upon the parties involved, although nothing in this procedure shall prohibit the seeking remedies available to them at law, Such questions, if they 13. SUSPENSION OR TERMINATION OF SERVICES This agreement may be terminated by either party upon tendering thirty (3t written notice to the other party. In the event of such suspension or terminatior request of the City, the Consultant shall assemble the work product and put SI order for proper filing and closing and deliver said product to City, In the e\ termination, the Consultant shall be paid for work performed to the terminatior however, the total shall not exceed the lump sum fee payable under paragraph L 5 Rev. 1 e 0 City shall make the final determination as to the portions of tasks completec compensation to be made. 14. STATUS OF THE CONSULTANT The Consultant shall perform the setvices provided for herein in Consult way as an independent contractor and in pursuit of Consultant’s independent ci not as an employee of the City. Consultant shall be under control of the City 1 the result to be accomplished, but shall consult with the City as provided request for proposal. The Consultant is an independent contractor of the City. The payment m: Consultant pursuant to the contract shall be the full and complete compensatior the Consultant is entitled. The City shall not make any federal or state tax wit1 on behalf of the Consultant. The City shall not be required to pay any compensation insurance on behalf of the Consultant. The Consultant i indemnify the City for any tax, retirement contribution, social security, overtime or workers’ compensation payment which the City may be required to make of the Consultant or any employee of the Consultant for work done u agreement. The Consultant shall be aware of the requirements of the Immigration Fk Control Act of 1986 and shall comply with those requirements, including, but r to, verifying the eligibility for employment of all agents, employees, subcontra consultants that are included in this agreement. 6 R el 0 e 15. CONFORMIW TO LEGAL REQUIREMENTS The Consultant shall cause all drawings and specifications to conforr applicable requirements of law: federal, state and local. Consultant shall prc necessary supporting documents, to be filed with any agencies whose apl necessary. The City will provide copies of the approved plans to any other agencies. 16. OWNERSHIP OF DOCUMENTS All plans, studies, sketches, drawings, reports, and specifications as herein are the property of the City, whether the work for which they are made be ex€ not. In the event this contract is terminated, all documents, plans, sped drawings, reports, and studies shall be delivered forthwith to the City. Consul have the right to make one (1) copy of the plans for his/her records. 17. REPRODUCTION RIGHTS The Consultant agrees that all copyrights which arise from creat work pursuant to this contract shall be vested in City and hereby agrees to relii claims to such copyrights in favor of City. 18. HOLD HARMLESS AGREEMENT The City, its officers, and employees shall not be liable for any claims, penalties, fines, or any damage to goods, properties, or effects of any person nor for personal injuries or death caused by, or resulting from, any inte 7 Re e 0 negligent acts, errors or omissions of Consultant or Consultant’s agents, emplo representatives. Consultant agrees to defend, indemnify, and save free and harn City and its officers and employees against any of the foregoing claims, Ii penalties or fines, including liabilities or claims by reason of alleged defects in a and specifications, and any cost, expense or attorney’s fees which are incurre City on account of any of the foregoing. Ig- ASSIGNMENT OF CONTRACT The Consultant shall not assign this contract or any part thereof or any rno thereunder without the prior written consent of the City. 20. SUBCONTRACTING If the Consultant shall subcontract any of the work to be performed UI contract by the Consultant, Consultant shall be fully responsible to the City for and omissions of Consultant’s subcontractor and of the persons either di indirectly employed by the subcontractor, as Consultant is for the acts and omi persons directly employed by consultant. Nothing contained in this contract sh any contractual relationship between any subcontractor of Consultant and the ( Consultant shall bind every subcontractor and every subcontractor of a subcon. the terms of this contract applicable to Consultant’s work unless specifically no. contrary in the subcontract in question approved in writing by the City. Ill lII 8 Re\ 0 0 21. PROHIBITED INTEREST No official of the City who is authorized in such capacity on behalf of tf. negotiate, make, accept, or approve, or take part in negotiating, making, accI approving of this agreement, shall become directly or indirectly interested per this contract or in any part thereof. No officer or employee of the City who is a in such capacity and on behalf of the City to exercise any executive, super similar functions in connection with the performance of this contract shall becom or indirectly interested personally in this contract or any part thereof. 22. VERBAL AGREEMENT OR CONVERSATION No verbal agreement or conversation with any officer, agent, or employ City, either before, during or after the execution of this contract, shall affect or m of the terms or obligations herein contained nor entitle the Consultant to any I payment whatsoever under the terms of this contract. 23. SUCCESSORS OR ASSIGNS Subject to the provisions of Paragraph 18, "Hold Harmless Agreement," conditions, and provisions hereof shall insure to and shall bind each of th hereto, and each of their respective heirs, executors, administrators, succes: assigns. 24. EFFECTIVE DATE This agreement shall be effective on and from the day and year first writtc 9 Re\ e a 25. CONFLICT OF INTEREST The Consultant shall file a conflict of interest statement with the City ( accordance with the requirements of the City’s Conflict of Interest Code. The dis category shall be categories 2, 3, and 4. 26. INSURANCE The Consultant shall obtain and maintain policies of general liability in: automobile liability insurance, and a combined policy of worker’s compensai employers liability insurance from an insurance company authorized to do bu! the State of California which meets the requirements of city Council Resolutior 403 in an insurable amount of not less than one million dollars ($1,000,000) eacl a lower amount is approved by the City Attorney or the City Manager. This ii shall be in force during the life of this agreement and shall not be canceled with (30) days prior written notice to the City sent by certified mail. Ill Ill 111 I// 111 Ill //I Ill 10 Re e 6 The City shall be named as an additional insured on these policies. The Cc shall furnish certificates of insurance to the City before commencement of wor~ Executed by Consultant this day of June, 1994. CBNSU LTANT: CITY OF CARLSBAD, a municip corporation of the State of Californi I- //A+ IC All, !kJ + /-/JA, $ z?C&?+?L (name of Consultah) By: City Manager m-kqux ,/ I ,. , -/ r Frank Mannen, Acting Ci I sign here - ATTEST: BY. 4 i /,.. ,* / -2 /L/L ' 7 (print name here) 1 /Llc~',~~,~.*~~ Ii fc:,-/,Jri '-7 L?&m&i!*A &Gnff/lrl;, (title ahd hrganization of signatory) ALETHA L. RAUTENKRANZ City Clerk (Proper notarial acknowledgment of execution by CONSULTANT must be attac (President or vice-president and secretary or assistant secretary must corporations. If only one officer signs, the corporation must attach a resolution by the secretary or assistant secretary under corporate seal empowering that bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL City Attorney .c-.)il------.8- G2. i3eprhy City Attorney F/f/W. 11 Rev EX - e 0 1111 ION I \tlhl,OI’i L tlOl3V)h - __ _-___-_____ %<)%>l’( I\II ( Llll‘l Ihl\L \lilt‘ Ic‘i’ t I~III 111 ( I~IIOII~II~)+>~\ 2331 I,IL1h ml ilii 713 i;i’ I I\ il017i3 I?‘)+ June 28,1994 Mr. Frank Mannen Mr. Jim Hagaman Assistant City Manager City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Special Projects Manager City of Carlsbad 2075 Las Palmas Drive Carlsbad, CA 92009 Solid Waste Consulting Support Engagement Letter Dear Gentlemen: In accordance with your request at OUT meeting on May 2,1994 and based on subsequent discussions, I have prepared this engagement letter that describes and conditions under which Hilton Farnkopf & Hobson will provide solid was consulting support to the City of Carlsbad. Scope of Servic~ HF&H will perform the tasks described in Attachment 1 Project Scope and as 1 fully discussed at our May 2,1994, meeting. If, during the course of our performance of these tasks, we identify the need fa additional services beyond those described in Attachment 1, we will notify yo1 immediately before proceeding. - The term of this agreement is from August 1,1994, to December 31,1994, unle extended in writing by both parties. We anticipate that the project will require sixty (60) days to perform, however schedule is dependent in part on the ability of Coast Waste Management (CW perform certain tasks. Once we have confirmed the schedule with CWM, we i submit a final schedule by task to you. e 0 &-&$ b ‘ ’ I111 loNiAR~t\oI’l &ILOt3~09 - __._ ____ - . ~ - _________ _______ Messrs. Mannen and Hagaman June 28,1994 Page 2 Staffin? of Enuc~ ment I will be the partner in charge of the engagement. I will be assisted by Mr. Davi and Ms. Cynthia Battenberg. The tasks each of us will perform and our qualific for their performance are described in our proposal dated April 22,1994. Fee for Services and BillinE Terms Our not-to-exceed fee, including out-of-pocket expenses, for the performance o tasks described in Attachment 1 is $34,000 (refer to Attachment 2). If the City rt additional services, we will agree upon a fee for such services, based on OUT the current rates, before proceeding. We will bill you bi-weekly based on the hours spent and out-of-pocket expense incurred on this project. Payment is due thirty (30) days after receipt of invoicc 1% late fee will be assessed on any balances outstanding more than thirty (30) ( If the terms and conditions described above meet with your approval, please h authorized representative of the City sign below. If you have any questions, p me at 510/713-3270. Very truly yours, Robert D. Hilton, CMC Managing Partner Enclosure - Attachments 1 and 2 The above terms and conditions are accepted by (Name) , on behalf of the City, this , day of June 15 (Title) 0 iecyclea LJ paper 0 0 City of Carlsbad Solid Waste Consulting Support CITY OF CARLSBAD SCOPE OF SERVICE This Project Initiation Phase is composed of two tasks: Task 1.1; Prepare for and Facilitate Kick-Off Meeting The objective of this task is to summarize the objectives, approach and timing of t to effectively communicate with the City our understanding of the engagement ar that understanding, as appropriate. We will review all background documents including the contract between the Cit past rate reviews, relevant City ordinances, current plans and studies, and recent ( dence. We will prepare for the Project Kick-Off Workshop by assembling discussi and developing an agenda. We will facilitate the Kick-Off Meeting during which we will confirm our underst City's goals and objectives and reach agreement of the parties (HF&H, City and C regarding project logistics. Task 1.2: Document Kick-Off Meeting Results The objective of this task is to document the results of the Kick-Off Meeting so tha understandings reached during the meeting are effectively communicated and av, reference during the remainder of the engagement. We will document the direction received at the Project Kick-off Workshop includi project logistics. Of particular importance will be the documentation of the City's objectives whicl-~ will directly contribute to our performance of the project. We wi documentation to the City and CWM for their review and confirmation. Hilton Farnkopf & Hobsc Page 1 of 5 City of Carlsbad 0 0 pii Solid Waste Consulting Support The Review and Update of the Contract Phase is composed of two tasks: Task 2.NI): Review and Evaluate Current Contract As part of this task, we will review the contract between the City and CWM using c Quality Matrix which we developed specifically for this purpose and has been succc with numerous jurisdictions. Both outdated portions of the contract and recommer improving the contract will be identified and documented. We have assumed that recommendations will be implemented by the City Attorney; however, we will be i time and materials basis to assist the City in this activity. Task 2.2 (VIII): Analyze and Develop Terms for Multi-Year Contract The objective of this task is to evaluate the benefits and risks of establishing a multi contract and draft the related contract terms, if a multi-year contract is deemed apl The advantages, disadvantages and impacts of a multi-year contract will be expIor staff. We will identify and document how certain contract provisions could be amc time (e.g., rate adjustments). We have assumed that the actual contract modifications would be made by the Ci however, we will be available on a time and materials basis to assist the City. The Analyses of Cost of Services Phase is composed of three tasks: Task 3.1(1V): Analyze Multi-Family Solid Waste Costs and Rates The objective of this task is to determine if a new category of rates for multi-famil should be establishedl We wilI collect from CWM operations and cost information to isolate the costs of multi-family collection from the costs of providing commercial collection. The re received from multi-family accounts will then be compared to the actual cost of p scrvice. lintcs for ~nirlti-f;lrnily collection will then be established and compared I The costs of administering a separate rate structure will then be determined and recommendations as to whether the City should implement a separate rate struct Hilton Farnkopf & Hob Page 2 of 5 City of Carlsbad 0 0 Solid Waste Consulting Support the rates should be. Task 3.2 (V): Classify Residential Solid Waste Service Costs We will collect from CWM operations and cost information related to residential s services to determine the cost of providing each service (solid waste collection, rec waste collection, bulky waste pick up, etc.). Task 3.3 (V.a.): Evaluate Yard Waste Program Costs The objective of evaluating the costs of the yard waste program is to identify areas efficiency of the yard waste collection program can be improved. Task 4.1 (VII): Review Non-Collectible Accounts The objective of this task is to modify the Refuse Rate Index System to cover losse. collectible accounts, if appropriate. We will gather information from CWM regarding non-collectible accounts and de annual percentage of bad debt. CWM's annual percentage of bad debt will then b other haulers' annual percentage of bad debt to determine the reasonableness of C We will recommend a method to incorporate bad debt into the rate calculation, if Task 4.2 (11): Review Operating Ratio and Rate Structure The objective of this task is to recommend an operating ratio and rate structure fo which meets the City's goals and objectives. We will provide the City and CWM with industry data and information on the m calculation of the operating ratio and amount of profit other jurisdictions that reg allow their haulers. Hilton Farnkopf & Hobs Page 3 of 5 e e City of Carlsbad Solid Waste Consulting Support revenue requirement. Based on this input, we will develop a rate structure to meet the City's goals. The Communication Phase is composed of three tasks: Task 5.1: Prepare Draft Report The objective of this task is to document our findings from the analyses performed preceding phases in order that these may be commented upon by City and CWM r We will prepare a draft report of our findings and distribute it to City and CWM IT for review. We will meet once with City and CWM representatives to discuss theii The results from the review of the draft report by the City and CWM will be consic preparing the final report in Task 5.2. Task 5.2: Prepare Final Report The objective of this task is to prepare a final reporting reflecting City and CWM x comments on the draft report. We will accept and review any written comments and additional documentation s by City or CWM management. Based on our review, we will amend our draft repc necessary, and issue a final report to the City and CWM. This final report will sen for our presentation materials and presentation to the Council during Task 5.3. Task 5.3: Present Report The objective of this task is to present our report to the Council and respond to quc We will meet once with the Council to present our report and respond to any que2 Hilton Farnkopf & Hobsc Page 4 of5 City of Carlsbad 0 0 Solid Waste Consulting Support I The objective of this activity is to perform internal quality reviews, prepare corres€ compile our workpapers, and perform other administrative fbnctions. LJNITATIONS As with any project approach, certain limitations exist. Rather than wait until the 1 underway, we believe it is most appropriate to identify them during the proposal : Our analysis of current and historical results of operations relies upon representati We will inform you of any issues that come to our attention during our review of t financial transactions; however, we have not proposed to conduct our own detaile the Company's financial transactions. The financial results of the Company's future operations depend upon certain assL regarding future events and management's response to those events. Because ther differences between the anticipated and actual events and responses, actual result: responsible for the management of the Company and such management may char Therefore, we can neither accept responsibility for the realization of the projected 1 we accept responsibility to update the projections subsequent to the date of their F Finally, the projections are intended for use by the City of Carlsbad (which is in a 1 understand the purpose of their preparation and the limitations of their use) only ( by any other person or for any other purpose is not intended. Unless otherwise indicated, all meetings described in our approach are limited to ( four consecutive hours to be arranged for a mutually agreeable time. Fiather, we input from the Company at key points during the project; however, once a task is will not perform any detailed testing of subsequent documents or new informatio the Company regarding the subject performed during the task. Finally, we will pi draft report which we will amend (if, in our sole discretion, we believe such amen appropriate) once to reflect comments from City and CWM management. Finally, as noted in Phase I of the Scope of Service, we will identify areas for imprc modifications to the current agreement. While we have not proposed to draft spe( for the current agreement (we have assumed the City Attorney will do so) we will to draft amendments to the current agreement on a time-and-material basis. differ from the projected results and these differences can be material, Also, we ar Hilton Famkopf & Hobs Page 5 of5