HomeMy WebLinkAbout07 - 07 -Selection of a Vendor to Evaluate City Refuse ServicesCITY OF
NEWPORT BEACH
City Council Staff Report Agenda Item No. 7
January 24, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Municipal Operations Department
Mark Harmon, Municipal Operations Department Director
949 644 -3055, mharmon @newportbeachca.gov
PREPARED BY: Mike Pisani, Deputy Municipal Operations Director
APPROVED: 0`
TITLE: Selection of a Vendor to Evaluate City Refuse Services
ABSTRACT:
The City Manager has directed staff to evaluate key City services to insure they are
provided in an economical and efficient manner. To provide such an evaluation,
Municipal Operations staff completed an RFP process to select a qualified consultant to
perform a baseline study of refuse collection service operations and total costs, as well
as to analyze alternatives and "best practices" models.
RECOMMENDATION:
Authorize the Mayor to enter into an agreement with HF &H Consultants, LLC, of Irvine
to complete an analysis of the services performed by the City Refuse Division and to
perform the requested tasks at a cost of $99,500.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this contract. It will be
expensed to the Professional and Technical Services account in the Municipal
Operations Department (MOD), 3150 -8080.
DISCUSSION:
In recent years, the City has evaluated several important services to evaluate whether
an in- house, outsourced, or hybrid model is appropriate. These include airborne law
enforcement, street sweeping, parking meter management, beach refuse collection,
restroom maintenance, and more.
Refuse collection is one area that the City Manager believes deserves an analysis, too
— in part because:
Selection of a Vendor to Evaluate City Refuse Services
January 24, 2012
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• It is a $5.7 million annual cost item to the City;
• Personnel costs — including benefits and injury/claims compensation — remain a
significant part of any labor- intensive public operation;
• The current system where cans are non - standard and do not have fixed lids can
lead to code enforcement issues and limits automation where automation is
possible;
• Because of Compressed Natural Gas (CNG) requirements, the cost of air quality -
compliant refuse collection trucks is fairly high;
• It is relatively rare that cities provide this service directly, creating a strong group
of contracting companies in the marketplace;
• Significant portions of the community today are served by private- sector vendors
(Santa Ana Heights, Bonita Canyon, Bay Knolls, Newport Coast, all multi - family
residential units); and
• Single- family homes in portions of the community today with City - provided refuse
collection have the service funded via the 1% "Basic Levy" of their property tax,
while other portions of the community pay for refuse collection separately and in
addition to their property tax — making the City - provided refuse collection service
compete with operations in police, fire, EMS, library, and other departments for
resources.
That noted, staff also recognizes that:
• This is a City service that is well- regarded by residents as a critical perquisite for
living in those portions of Newport Beach that have City - provided refuse
collection;
• Staff members who serve in the Refuse Division provide a very physical and
challenging job, and they do so with great professionalism and exemplary
customer service;
• The City's neighborhoods are very diverse — a refuse collection model for Balboa
Island may not work as well in the Port Streets, nor West Newport or the Balboa
Peninsula; and
• Any change to the current service — regardless of in -house versus contracted
model — should reduce costs while still meeting or exceed the current service
standards (unlimited cans, mixed waste recycling, customer care standards, and
more).
To evaluate whether refuse collections in MOD are provided in the most economical
and efficient fashion, the City Manager directed staff to conduct a study of refuse
collection operations. MOD and Finance Department staff prepared a Request for
Proposals (RFP) seeking a qualified firm to conduct a study of existing operations,
costs, level of service and a best practices in the refuse collection industry.
Selection of a Vendor to Evaluate City Refuse Services
January 24, 2012
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The RFP specified three primary tasks and one optional task. Task 1 is to completely
analyze the current City refuse collection program through the collection of cost and
operational (number of homes collected, tons of waste collected) data. This task will
also include an analysis of collection equipment, maintenance, workers comp and
liability costs, management costs and take into account future needs.
Task 2 will use this data to compare our costs to service delivery models in other
municipalities, using examples of cities where solid waste is collected by either city staff
or a private company. This task will also include an examination of the potential service
changes to City refuse collection (automated collection, source separated vs.
commingled recyclable collection, and more).
In Task 3, the consultant will develop a report of their findings, review their conclusions
with staff, and ultimately report the findings to the City Council. The report will provide
the City Council an independent, outside evaluation of the services provided by the City
and suggest opportunities for improved service and reduced costs, if any.
Task 4 is optional and will only be activated at the City Council's direction. This task is
to have the selected firm assist in administrating a separate RFP process to solicit bids
to provide refuse collection from private waste hauling firms, or from the current City
operations team. This task will only be requested if after receiving the Refuse Service
Report the City Council directs staff to begin an RFP solicitation process.
RFP Process:
On November 9, 2011, the RFP solicitation was publicly distributed.
A pre - proposal meeting was conducted on November 17, 2011 to allow interested
parties to discuss the scope of services requested in the RFP with City staff. At the
submittal deadline, the RFP solicitation generated proposals from three (3) consulting
firms: HF &H Consultants, SCS Engineers and Waste Systems Management. To
properly evaluate the proposals, an internal evaluation panel was convened whose
members are knowledgeable of refuse operations and finance.
In accordance with the administrative procedures set forth in Council Policy F -14, a two -
step Qualifications -Based Selection process was utilized by the evaluation panel. In the
first step, proposals were evaluated on criteria that included: demonstrated
understanding of the services requested and the project at hand, experience in public
sector solid waste consulting services, qualifications of personnel assigned to the
project and overall project methodology. Using these criteria, the proposals were
evaluated and ranked against each other. The second step involved opening and
assessing the feasibility of the cost proposal of the highest qualified firm. The following
is a brief narrative on each proposal received, in order of rank:
Selection of a Vendor to Evaluate City Refuse Services
January 24, 2012
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HF &H Consultants:
This firm, based in Irvine, presented a proposal that reflected the firm's extensive
knowledge of the solid waste collection industry and experience in handling similar
studies for other local municipalities. HF &H Consultants' proposed project team
included dedicated experts in financial analyses, local government policy, accounting,
law and solid waste best practices. In their proposal, HF &H Consultants provided
samples of studies and reports performed for the cities of Beverly Hills and Long Beach
which impressed the evaluation panel. The RFP also contained a Statement of
Disclosure requiring all firms to disclose any prior business relationships with solid
waste collection hauling firms; HF &H Consultants had no reportable business activities
or relationships with any of these firms.
SCS Engineers:
This firm, based in Long Beach, also impressed the evaluation panel with demonstrated
knowledge of the solid waste collection industry and project history. However the
proposal from SCS Engineers proposed a collaborative effort with a firm named R3
Consulting Group in performing the requested analyses. Among the evaluation panel
there was some reservation regarding this proposed collaboration, resulting in a slightly
higher rank for HF &H Consultants due to their experienced and balanced proprietary
project staff. Furthermore, SCS Engineers disclosed some project history with a
number of private solid waste collection hauling firms.
Waste Systems Management:
While the proposal from this La Mirada -based firm demonstrated a working knowledge
of the project and the analyses required, it also appeared to present the least amount of
similar project experience of all the proposals received. Although highly skilled, there
were only two (2) staff members proposed to be assigned to this project and that
concerned the evaluation panel. Waste Systems Management had no reportable
business activities or relationships to disclose.
Final Ranking. After evaluating all three (3) received proposals, the evaluation panel
ranked HF &H Consultants as the most qualified firm for this project. The cost proposal
from HF &H Consultants was then opened and at Ninety Nine Thousand Five Hundred
dollars ($99,500.00) was concurrent with the projected cost for this project. The RFP
detailed three (3) key objectives to be performed by the selected consultant: (1) analysis
of the City's current refuse collection program, (2) analysis and comparison of the City's
service levels to those of other local municipalities and (3) development and reporting of
the findings of these analyses. The proposal also included the optional 4`h task to assist
in an RFP process if direction from Council is received. The cost proposal of
$99,500.00 from HF &H Consultants provides for 484 total hours to complete these
objectives.
Selection of a Vendor to Evaluate City Refuse Services
January 24, 2012
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Attached is a Professional Services Agreement with HF &H Consultants to perform the
requested services. Following City Council approval, the Agreement will be executed
by the City Manager.
Staff will not proceed into Task 4 unless directed to do so by formal vote of the City
Council upon completion and public discussion of the HFH report.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Mark Harmon, Director'
Municipal Operations Department
Attachments: A. Professional Services Agreement with HF &H Consultants, LLC for
Residential Solid Waste and Recycling Consultation Services
PROFESSIONAL SERVICES AGREEMENT WITH
H F & H CONSULTANTS, LLC
FOR RESIDENTIAL SOLID WASTE AND RECYCLING CONSULTING SERVICES
THIS AGREEMENT FOR PROFESSIONAL SERVICES ( "Agreement ") Is made
and entered into as of this day of January, 2012 by and between the CITY OF
NEWPORT BEACH, a Califomia municipal corporation and charter city ( "City"), and H F
& H CONSULTANTS, LLC, a Caliifomia limited liability company ( "Consultant"), whose
address is 19200 Von Karman Avenue, Suite 360, Irvine, California 92612 and is made
with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on Its business as It is now being
conducted under the statutes of the State of California and the Charter of City.
B. City currently provides residential solid waste and recycling services to many City
residents.
C. City desires to engage Consultant to assess the service level of the City's current
residential solid waste and recycling program, including comparison of the City's
service levels to those of other agencies and private refuse collection operational
models ( "Project").
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Consultant for purposes of Project shall be Laith Ezzet,
Senior Vice President.
F. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in ,this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on July 31, 2012 unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
City and Consultant acknowledge that the above Recitals are true and correct and are
hereby Incorporated by reference. Consultant shall diligently perform all the services
described in the Scope of Services attached hereto as Exhibit A and incorporated
herein by reference ( "Work" or "Services "). The City may elect to delete certain tasks of
the Scope of Services at its sole discretion.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of Services under this Agreement. and
Consultant shall perform the Services in accordance with the schedule included in
Exhibit A. The failure by Consultant to strictly adhere to the schedule may result in
termination of this Agreement by City.
4. COMPENSATION TO CONSULTANT
4.1 City shall pay Consultant for the Services on a time and expense not-to-
exceed basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and Incorporated herein by reference.
Consultants compensation for all Work performed in accordance with this Agreement,
Including all reimbursable items and subconsultant fees, shall not exceed Ninety Nine
Thousand Five Hundred Dollars and no/100 ($99.500.00) without prior written
authorization from City. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City.
4.2 Consultant shall submit monthly invoices to City describing the Work
performed the preceding month. Consultants bills shall include the name of the person
who performed the Work, a brief description of the Services performed and /or the
specific task in the Scope of Services to which it relates, the date the Services were
performed, the number of hours spent on all Work billed on an hourly basis, and a
description of any reimbursable expenditures. City shall pay Consultant no later than
thirty (30) days'after approval of the monthly invoice by City staff.
4.3 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing in advance
by City. Unless otherwise approved, such costs shall be limited and include nothing
more than the following costs incurred by Consultant:
4.3.1 The actual costs of subconsultants for performance of any of the
Services that Consultant agrees to render pursuant to this Agreement, which have been
approved in advance by City and awarded in accordance with this Agreement.
4.3.2 Approved reproduction charges.
4.3.3 Actual costs and/or other costs and /or payments specifically
authorized in advance in writing and incurred by Consultant in the performance of this
Agreement.
4.4 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of City. As used herein, "Extra Work' means any
Work that is determined by City to be necessary for the proper completion of the
Project, but which is not included within the Scope of Services and which the parties did
not reasonably anticipate would be necessary at the execution of this Agreement.
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Compensation for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit B.
5. PROJECT MANAGER 7
5.1 Consultant shall designate a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated Laith Ezzet, Senior Vice
President to be its Project Manager. Consultant shall not remove or reassign the
Project Manager or any personnel listed in Exhibit A or assign any new or replacement
personnel to the Project without the prior written consent of City. City's approval shall
not be unreasonably withheld with respect to the removal or assignment of non -key
personnel.
5.2 Consultant, at the sole discretion of City, shall remove from the Project
any of its personnel assigned to the performance of Services upon written request of
City. Consultant warrants that It will continuously furnish the necessary personnel to
complete the Project on a timely basis as contemplated by this Agreement.
6. ADMINISTRATION
This Agreement will be administered by the Municipal Operations Department. Mark
Hannon, Municipal Operations . Director, or his/her designee, shall be the Project
Administrator and shall have the authority to act for City under this Agreement. The
Project Administrator or his/her authorized representative shall represent City in all
matters pertaining to the Services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
7.1 in order to assist Consultant in the execution of its responsibilities under
this Agreement, City agrees to, where applicable:
7.1.1 Provide access to, and upon request of Consultant, one copy of all
existing relevant Information on file at City. City will provide all such materials in a
timely manner so as not to cause delays in Consultants Work schedule.
8. STANDARD OF CARE
8.1 All of the Services shall be performed by Consultant or under Consultants
supervision. Consultant represents that it possesses the professional and technical
personnel required to perform the Services required by this Agreement, and that it will
perform all Services in a manner commensurate with community professional
standards. All Services shall be performed by qualified and experienced personnel who
are not'employed by City, nor have any contractual relationship with City. By delivery of
completed Work, Consultant certifies that the Work conforms to the requirements of this
Agreement and all applicable federal, state and local laws and the professional standard
of care.
8.2 Consultant represents and warrants to City that it has, shall obtain, and
shall keep in full force in effect during the term hereof, at its sole cost and expense, all
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licenses, permits, qualifications, insurance and approvals of whatsoever nature that is
legally required of Consultant to practice its profession. Consultant shall maintain a City
of Newport Beach business license during the term of this Agreement.
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8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, or acts of God, or the failure of City to furnish timely information or
to approve or disapprove Consultant's Work promptly, or delay or faulty performance by
City, contractors, or governmental agencies.
9. HOLD HARMLESS
9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend
and hold harmless City, Its City Council, boards and commissions, officers, agents,
volunteers, and employees (,collectively, the "Indemnified Parties ") from and against any
and all claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attomey's fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim; collectively, "Claims "), which may arise from or in any manner
relate (directly or indirectly) to any breach of the terms and conditions of this
Agreement, any Work performed or Services provided. under this Agreement including,
without limitation, defects in workmanship or materials or Consultant's presence or
activities conducted on the Project (including the negligent and /or willful acts, errors
and /or omissions of Consultant, its principals, officers, agents, employees, vendors,
suppliers, subconsultants, subcontractors, anyone employed directly or indirectly by any
of them or for whose acts they may be liable or any or all of them).
9.2 Notwithstanding the foregoing, nothing herein shall be construed to
require Consultant to indemnify the Indemnified Parties from any Claim arising from the
sole negligence or willful misconduct of the Indemnified Parties. Nothing in this
Indemnity shall be construed as authorizing any award of attorney's fees in any action
on or to enforce the terms of this Agreement. This indemnity shall apply to all claims
and liability regardless of whether any insurance policies are applicable. The policy
limits do not act as a limitation upon the amount of indemnification to be provided by the
Consultant.
10. INDEPENDENT CONTRACTOR
It is .understood that City retains Consultant on an independent contractor basis and
Consultant is not an agent or employee of City. The manner and means of conducting
the Work are under the control of Consultant, except to the extent they are limited by
statute, rule or regulation and the expressed terms of this Agreement. Nothing in this
Agreement shall be deemed to constitute approval for Consultant or any of Consultant's
employees or agents, to be the agents or employees of City. Consultant shall have the
responsibility for and control over the means of performing the Work, provided that
Consultant is in compliance with the terms of this Agreement. Anything in this
Agreement that may appear to give City the right to direct Consultant as to the details of
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the performance or to exercise a measure of control over Consultant shall mean only
that Consultant shall follow the desires of City with respect to the results of the Services.
11. COOPERATION 7
Consultant agrees to work closely and cooperate fully with City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the Work
to be performed. City agrees to cooperate with the Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project direction
with City's Project Administrator in advance of all critical decision points in order to
ensure the Project proceeds in a manner consistent with City goals and policies.
13. PROGRESS'
Consultant is responsible for keeping the Project Administrator and /or his/her duly
authorized designee informed on a regular basis regarding the status and progress of
the Project, activities performed and planned, and any meetings that have been
scheduled or are desired.
14. INSURANCE
14.1 Without limiting Consultant's indemnification of City, and •prior to
commencement of Work, Consultant shall obtain, provide and maintain at its own
expense during the tern of this Agreement, policies of insurance of the type and
amounts described below and in a form satisfactory to City.
14.2 Proof of Insurance. Consultant shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a waiver of
subrogation endorsement for workers' compensation. Insurance certificates and
endorsement must be .approved by City's Risk Manager prior to commencement of
performance. Current certification of insurance shall be kept on file with City at all times
during the term of this Agreement. City reserves the right to require complete, certified
copies of all required insurance policies, at any time.
14.2.1 Consultant shall procure and maintain for the duration of the
Agreement insurance against claims for injuries to persons or damages to property,
which may arise from or in connection with the performance of the Work hereunder by
Consultant, his agents, representatives, employees or subcontractors. The cost of such
Insurance shall be included In Consultant's bid.
14.3 Acceptable Insurers. All insurance policies shall be issued by an
Insurance company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders' Rating
of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the
latest edition of Best's Key Rating Guide, unless otherwise approved by the Cfty's Risk
Manager.
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14.4 Coveraae Requirements.
14.4.1 Workers' Compensation Coverage. Consultant shall maintain
Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least one million dollars ($1,000,000)) for Consultant's employees in
accordance with the laws of the State of California, Section 3700 of the Labor Code In
addition, Consultant shall require each subconsultant to similarly maintain Workers'
Compensation Insurance and Employer's Liability Insurance in accordance with the
laws of the State of Califomia, Section 3700 for all of the subcontractor's employees.
14.4.1.1 Any notice of cancellation or non - renewal of all
Workers' Compensation policies must be received by City at least thirty (30) calendar
days (ten (10) calendar days written notice of non - payment of premium) prior to such
change.
14.4.1.2 Consultant shall submit to City, along with the
certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its
officers, agents, employees and volunteers.
14.5 General Liability Coverage. Consultant shall maintain commercial general
liability insurance In an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury, and property damage, including without
limitation, blanket contractual liability.
14.6 Automobile Liability Coverage. Consultant shall maintain automobile
insurance covering bodily injury and property damage for all activities of the Consultant
arising out of or in connection with Work to be performed under this Agreement,
Including coverage for any owned, hired, non -owned or rented vehicles, in an amount
not less than one million dollars ($1,000,000) combined single limit for each accident.
14.7 Professional Liability (Errors & Omissions) Coverage. Consultant shall
maintain professional liability insurance that covers the Services to be performed in
connection with this Agreement, in the minimum amount of one million dollars
($1,000,000) limit per claim and in the aggregate.
14.8 Other Insurance Provisions or Reauirements.
14.8.1 The policies are to contain, or be endorsed to contain, the following
provisions:
14.8.1.1 Waiver of Subrogation. All Insurance coverage
maintained or procured pursuant to this agreement shall be endorsed to waive
subrogation against City, its elected or appointed officers, .agents, officials, employees
and volunteers or shall specifically allow Consultant or, others providing insurance
evidence in compliance with these requirements to waive their right of recovery prior to
a loss. Consultant hereby waives its own right of recovery against City, and shall require
similar written express waivers and insurance clauses from each of its subcontractors.
14.8.1.2 Enforcement of Agreement Provisions. Consultant
acknowledges and agrees that any actual or alleged failure on the part of the City to
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inform Consultant of non - compliance with any requirement Imposes no additional
obligations on the City nor does it waive any rights hereunder.
14.8.1.3 Requirements not Limiting. Requirements of specific
coverage features or limits contained in this Section are not Intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage normally provided
by any insurance. Specific reference to a given coverage feature is for purposes of
clarification only as It pertains to a given issue and is not Intended by any party or
Insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
14.8.1.4 Notice of Cancellation. Consultant agrees to oblige
Its insurance agent or broker and insurers to provide to City with thirty (30) days notice
of cancellation (except for nonpayment for which ten (10) days notice is required) or
nonrenewal of coverage for each required coverage.
14.9 Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from Consultant's
performance under this Agreement.
14.10 Additional Insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which In its own judgment
may be necessary for its proper protection and prosecution of the Work.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the Services to be provided
under this Agreement shall not be assigned, transferred contracted or subcontracted out
without the prior written approval of City. Any of the following shall be construed as an
assignment: The sale, assignment, transfer or other disposition of any of the Issued
and outstanding capital stock of Consultant, or of the Interest of any general partner or
joint venturer or syndicate member or cotenant If Consultant is a partnership or joint -
venture or syndicate or cotenancy, which shall result in changing the control of
Consultant. Control means fifty percent (50 %) or more of the voting power, or twenty -
five percent (25 %) or more of the assets of the corporation, partnership or joint - venture.
16. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering Into this
Agreement is the professional reputation, experience and competence of Consultant.
Assignments of any or all rights, duties or obligations of the Consultant under this
Agreement will be permitted only with the express written consent of City. Consultant
shall not subcontract any portion of the Work to be performed under this Agreement
without the prior written authorization of City.
17. OWNERSHIP OF DOCUMENTS
17.1 Each and every report, draft, map, record, plan, document and other
writing produced (hereinafter "Documents "), prepared or caused to be prepared by
Consultant, its officers, employees, agents and subcontractors, in the course of
Implementing this Agreement, shall become the exclusive property of City, and City
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shall have the sole right to use such materials in its discretion without further
compensation to Consultant or any other party. Consultant shall, at Consultant's
expense, provide such Documents to City upon prior written request.
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17.2 Documents, including drawings and specifications, prepared by
Consultant pursuant to this Agreement are not intended or represented to be suitable
for reuse by City or others on any other project. Any use of completed Documents for
other projects and any use of incomplete Documents without specific written
authorization from Consultant will be at City's sole risk and without liability to
Consultant. Further, any and all liability arising out of changes made to Consultant's
deliverables under this Agreement by City or persons other than Consultant is waived
against Consultant and City assumes full responsibility for such changes unless City
has given Consultant prior notice and has received from Consultant written consent for
such changes.
18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the Services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
The Consultant shall defend and indemnify City, its agents, officers, representatives and
employees against any and all liability, including costs, for infringement of any United
States' letters patent, trademark, or copyright infringement, Including costs, contained in
Consultant's drawings and specifications provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the Work to be performed
under this Agreement Consultant shall maintain complete and accurate records with
respect to the costs incurred under this Agreement and any Services, expenditures and
disbursements charged to City, for a minimum period of three (3) years, or for any
longer period required by law, from the date of final payment to Consultant under this
Agreement. All such records and invoices shall be clearly identifiable. Consultant shall
allow a representative of City to examine, audit and make transcripts or copies of such
records and Invoices during regular business hours. Consultant shall allow Inspection
of all Work, data, Documents, proceedings and activities related to the Agreement for a
period of three (3) years from the date of final payment to Consultant under this
Agreement:
21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of the
dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Consultant shall
not discontinue Work as a result of such withholding. Consultant shall have an
Immediate right to appeal to the City Manager or his/her designee with respect to such
disputed sums. Consultant shall be entitled to receive interest on any withheld sums at
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the rate of return that City eamed on Its investments during the time period, from the
date of withholding of any amounts found to have been improperly withheld.
22. ERRORS AND OMISSIONS 7
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what would
have resulted if there were not errors or omissions in the Work accomplished by
Consultant, the additional design, construction and/or restoration expense shall be
bome by Consultant. Nothing in this paragraph is intended to limit City's rights under the
law or any other sections of this Agreement.
23. CITY S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the Project.
24. CONFLICTS OF INTEREST
24.1 The Consultant or its employees may be subject to the provisions of the
Califomia Political Reform Act of 1974 (the "Act "), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the Work
performed under this Agreement, and (2) prohibits such persons from making, or
participating in making, decisions that will foreseeably financially affect such interest.
24.2 If subject to the Act, Consultant shall conform to all requirements of the
Act. Failure to do so constitutes a material breach and is grounds for immediate
termination of this Agreement by City. Consultant shall indemnify and hold harmless
City for any and all claims for damages resulting from Consultant's violation of this
Section.
25. NOTICES
25.1 All notices, demands, requests or approvals to be given under the terms of
this Agreement shall be given in writing, and conclusively shall be deemed served when
delivered personally, or on the third business day after the deposit thereof in the United
States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All
nodoes, demands, requests or approvals from Consultant to City shall be addressed to
City at:
Attn: Mark Harmon, Municipal Operations Director
Municipal Operations Department
City of Newport Beach
3300 Newport Boulevard
PO Box 1768
Newport Beach,. CA 92658
Phone: 949- 6443055
Fax: 949 -650 -0747
25.2 All notices, demands, requests or approvals from City to Consultant shall
be addressed to Consultant at
H F &-H Consultants, LLC Page 9
Attention: Laith Ezzet, Senior Vice President
H F & H Consultants, LLC
19200 Von Karmen Avenue, Suite #360 7
Irvine, CA 92612
Phone: 949 -251 -8902
Fax: 949- 251 -9741
26. CLAIMS
The Consultant and the City expressly agree that in addition to any claims filing
requirements set forth In the Agreement, the Consultant shall be required to file any
claim the Consultant may have against the City in strict conformance with the Tort
Claims Act (Government Code sections 900 et seq.).
27. TERMINATION
27.1 In the event that either party fails or refuses to perform any of the
provisions of this Agreement at the time and In the manner required, that party shall be
deemed in default In the performance of this Agreement. If such default Is not cured
within a period of two (2) calendar days, or if more than two (2) calendar days are
reasonably required to cure the default and the defaulting party fails to give adequate
assurance of due performance within two (2) calendar days after receipt of written
notice of default, specifying the nature of such default and the steps necessary to cure
such default, and thereafter diligently take steps to cure the default, the non - defaulting
party may terminate the Agreement forthwith by giving to the defaulting party written
notice thereof.
27.2 Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving seven
(7) calendar days prior written notice to Consultant. In the event of termination under
this Section, City shall pay Consultant for Services satisfactorily performed and costs
Incurred up to the effective date of termination for which Consultant has not been
previously paid. On the effective date of termination, Consultant shall deliver to City all
reports, Documents and other information developed or accumulated in the
performance of this Agreement, whether in draft or final form.
28. STANDARD PROVISIONS
28.1 Compliance With all Laws. Consultant shall at its own cost and expense
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, Including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, all Work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
28.2 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent
breach of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
H F & H Consultants, LLC Page 10
28.3 Integrated Contract. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged
herein. No verbal agreement or implied covenant shall be held to vary the provisions
herein.
28A Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Scope of Services or any other
attachments attached hereto, the terms of this Agreement shall govern.
28.5 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
28.6 Amendments. This Agreement may be modified or amended only by a
written document executed by both Consultant and City and approved as to form by the
City Attorney.
28.7 Severability. If any term or portion of this Agreement is held to be invalid,
Illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
28.8 Controlling Law and Venue. The laws of the State of Califomia shall
govern this Agreement and all matters relating to it and any action brought relating to
this Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange, state of California.
28.8 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex, age or any other impermissible basis under law.
28.10 No Attorney's Fees. In the event'of any dispute or legal action arising
under this Agreement, the prevailing party shall not be entitled to attorney's fees.
28.11 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.
[SIGNATURES ON NEXT PAGE]
H F & H Consultants, LLC Page 11
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
7
APPROVED AS TO FORM: CITY OF NEWPORT BEACH,
CITY ATTORNEY'S OFFICE A California municipal corporation and
charter city
Date: I /I z. At- Date:
By: �lf C for } By:
Aaron C. ,lip, Dave Kiff
City Attorney \1`\ City Manager
ATTEST: CONSULTANT: H F & H Consultants,
Date: LLC, a California limited liability company
Date:
By:
Lellani I. Brown
City Clerk
By:
Leith B. Ezzet
Senior Vice President
Date:
By:
John Famkopf
Secretary
[END OF SIGNATURES]
Attachments:. Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
H F & H Consultants, LLC Page 12
EXHIBIT A — SCOPE OF SERVICES
7
Objective 1: Analysis of current City refuse collection program
Consultant shall perform a comprehensive operational and financial analysis of the
City's existing residential refuse collection program.
As part of this objective, the Consultant shall review the City's existing in -house
operations for residential refuse collection services. Operationally, the Consultant shall
define the current service level being provided by assessing the service levels of the
existing refuse collection operation, including schedules, routes, and more, and
analyzing recent program satisfaction ratings by residents relative to the service levels
currently provided. The Consultant shall also assess current and projected facility
requirements based on the existing operations. Financially, the Consultant shall
calculate the City's current program costs and projected cost increases for the in -house
refuse collection services provided by the City, including a valuation of the City's
existing solid waste collection equipment.
Consultant shall perform the following specific tasks which comprise Objective 1:
1A. Prepare a preliminary data request for City staff,
1B. Prepare for and conduct a study kickoff meeting with City staff;
1C. Identify and document the City's existing refuse collection program;
11). Calculate current solid waste operation costs and prepare a five (5 }year
projection of costs; and
1E. Identify and discuss changes in State of California regulations related to
waste collection and diversion.
Objective 2: Best practice models
Consultant shall explore residential refuse collection service levels of other local
municipalities and iden* possible service alternatives and service provision options
from other contracts.
As part of this objective, the Consultant shall report on what programs other local
municipalities have undertaken to effectively and• creatively provide refuse collection.
This provision may include discussions regarding those cities that have transitioned
from in -house operations to working with a private residential refuse collection service,
or any cities that have actually replaced outsourced providers. The Consultant shall
review these contracts and /or agreements to privatize and identify any services,
operating models, service enhancements or alternatives that may be feasibly adopted
by the City, that might include, but not be limited to:
• Automated collection,
• Environmentally-friendly (i.e. "green°) collection practices,
• Collection practices that might allow one resident to curbside recycle despite
another on the same block wishing not to do so;
• Quieter collection practices,
• Bulk item collections,
• Alley collections.
This review will also include looking at other municipalities for any examplew that
demonstrate alternative service delivery approaches that enable the City to provide
refuse collection at levels that meet or exceed current standards. The Consultant shall
also evaluate :and compare the contract rates and costs for those local municipalities
that have privatized residential refuse collection, the City's current program cost, as well
as the costs incurred by municipalities that currently operate residential refuse collection
programs In- house.
Consultant shall perform the following specific tasks which comprise Objective 2:
2A. Identify and compare the residential refuse collection service levels and
cost metrics in five (5) selected local municipalities and rates charged to
customers;
2B. Identify and compare the residential refuse collection service levels and
cost metrics in five (5) regional cities with municipal residential refuse
Collection and the rates charged to customers;
2C. Describe other municipalities that have privatized refuse collection;
2D. Describe the potential service aftematives that could be provided by the
City; and
2E. Review the City's existing commercial refuse collection program.
Objective 3: Develop and present report of findings
Consultant shall compile the Information gathered from the previous Objectives and
develop a formal report presenting the findings, highlighting strengths of the City's
current refuse collection program and discussing potential options for service
improvement. '
The Consultant shall develop a formal report detailing the findings from Objectives 1
and 2. The report shall also discuss the City's current in house service model;
comparing service levels relative to other agencies, highlighting strengths of the current
refuse collection program and providing potential areas of improvement of the current
refuse collection program. The Consultant shall assess and quantify the future needs of
the City's . refuse collection program, such as resource and facilities requirements
needed to sustain the current in house program. The report shall also discuss the cost
and benefits of outsourcing options detailing how a private option could address the City
.of Newport's service level expectations. The report should also address any service
level enhancements from recent refuse collection contracts that the City may feasibly
Implement, including any potential benefits. Any examples of cost savings proposed
must also be accompanied with an analysis of both the magnitude and sustainability of
the proposed cost savings. The Consultant shall be required to present the report and
its corresponding findings to the Newport Beach City Council at up to two (2) Council
meeting sessions. These meetings are held on the second and fourth Tuesdays of
each month. As part of the response to the requirements of this Objective, the
Consultant shall also provide its methodology for compiling the report and presenting
the findings to a formal body, including content and approach.
H F & H Consultants, LLC Page 14
Consultant shall perform the following specific tasks which comprise Objective 3:
3A. Prepare a draft report of findings; 7
313. Review draft report with City staff;
3C. Prepare the final report; and
3D. Present findings to the City Council at up to two (2) meetings.
H F & H Consultants, LLC Page 15
EXHIBIT B — SCHEDULE OF BILLING RATES
R4 ey fH
iT
- 2 9 4 85 $1
_ . _
CODIECTIVE�f':'ANALYSLS;OF NPREN7iC1TYCPEFUSE :CDLLEGTION;P,ROGRAML' ,..4 ,_c ... ,s,'L,.'��'_,�2.i____. ��:. ',.� ��.
Task 1: Provide a Comprehensive Analysis of the Existing Refuses Collection S tem
1A
Prepare a preliminary data request for City staff.
1.
2
2
2
7
IB
Prepare for and conduct a study kickoff meeting with City staff.
4
8
4
2
0
18
lC
Identify and document thin Cltys existing refuse collection program.
8
8
16
32
1D
Calculate current so lid waste operation costs and prepare
five -year projection of costs
8
8
16
32
IE
Identify and discuss changes In State of California regulations
related to waste collection and diversion.
8
4
12
24
Total Hours Task -1
29 1 0 1 30
1 6 1 36
1 12
113
Total Estimated Cost -Task 1.
7,221$ -$ 1 6,270$ 1 11 1 6,660$ 1 2,268$
23,649$
goEDEl71VE 2.' rANALYSIS 'Of$ESLF,WI=IICE.MODEISI �'mbr i+�-' r: -'T uw"u =°�.'. �e� "."ya ' "•' ., s.:"P`M,z ..' x�'., Ni
Task 2: Identify residential refuse collection service level of other local murd patties and potential sevice alternatives and service provision o pitions In other contracts.
2A
Identify and compare the residential refuse collection service levels
and cost metric In five selected local municipalities and rates
charged to customers. 1
8
12
2
51
2
75
28
Identify and compare the residential refuse collection service levels
and cost metrics In five regional cities with municipal residential
refuse collection and the rates charged to customers.
8
12.
2
so
2
74
2C
Describe other municipalities that have privatized refuse collection.
4
4
4
12
20
Describe the potential service alternatives that could be provided by
the Clt .
3
B
2
16
2
31
2E
Review the Ct 's exktln commercial collection ro ram.
I Optional Task
Total Hours -Task 2
23 0 36
10 117 6 192
Total Estimated Cost -Task 2
FOMEOIIVEi DEVELOP. ?AaD.'PRESEkl IAO'Cr i KF1A -61 ill i.?1. ,Ci
111 51 -$ 7,524$ 2,050$ 21,645$ 1,134$ 38,080$
-- • wss. ..n _- �::,i1
Task 3: Develop and Present a Report documenting our findings
3A Prepare a draft report of findings!
16
2
32
4
40
4
98
38 Review draft report with City staff.
3
3
3
9
3C Prepare the Mal report.
6
8
16
30
3D Present findings to the City Council. (Up to 2 meetings)
8
2
16
16
42
Total Hours -Task 3
33
4
59
4
75
4
179
Total Estimated Cost -Task 3 8,217$ 996$
Total Hours 85 1 4 1
12,331$
125
820$
20
13,875$
228
756$
22
36,995$
484
Total Estimated Cost
21,165$ 1 996$ 1
26,125$
41
42,180$ 1
4,158$
98,724$
Other Expenses or Charges Total Estimated Project Cost
776
99,500$
H F & H Consultants, LLC Page 16