HomeMy WebLinkAbout24-Public Services
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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From: Ken Fischer, Director
Subject: Resolution of the Mayor and
Common Council of the City of San
Bernardino authorizing the execution of
an Agreement with R3 Consulting
Group, Inc., for business plan consulting
services for the Integrated Waste
Management Division.
Dept: Public Services
Date: December 14, 2007
Meeting Date: January 7,2008
Synopsis of Previous Council Action:
Recommended Motion:
Adopt Resolution
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Signature
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Contact person: Ken Fischer, Director
Supporting data attached:
Staff Report, Resolution, Quotes,
Agreement
Phone:
Ward:
5140
All
FUNDING REQUIREMENTS:
Amount:
Source:
$ 59,700.00
FY 07-08
Account Number 527-411-
5502 Professionall
Contractual Services
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Finance:
Council Notes:
Agenda Item No. t; 'I
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
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SUBJECT:
Resolution of the Mayor and Common Council of the City of San Bernardino authorizing
the execution of an Agreement with R3 Consulting Group, Inc., for business plan
consulting services for the Integrated Waste Management Division.
BACKGROUND:
The City of San Bernardino recently completed a Management Review of all City
Departments. The resulting list of recommendations from the Review included the
completion of a business plan for the Public Services Department, Integrated Waste
Management Division (IWM). The Management Review included a review of previous
studies and current data related to the IWM Division. The study recommended that the
City prepare a detailed business plan and rate study outlining financial requirements to
bring the City's refuse operation to competitive levels.
On September 19, 2007, notices inviting Requests for Proposals (RFP) for business plan
consulting services were sent to seven (7) qualified vendors. Two (2) vendors responded,
R3 Consulting Group, Inc. and HF&H Consultants, LLC. HF&H Consultants, LLC,
however, was considered non-responsive since they did not provide a fee estimate. R3
Consulting Group, Inc. provided a project budget and a detailed business plan. The other
five (5) vendors did not submit a proposal.
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The vendor, business location, and price quote are listed below.
Vendor
R3 Consulting Group, Inc.,
HF&H Consultants, LLC
R.W. Beck Inc.
SCS Engineers,
HDR
Gershman, Brickner & Bratton Inc.
MSW Consultant,
Huls Environmental,
Location
Sacramento, CA
Newport Beach, CA
San Diego, CA
Long Beach, CA
Riverside, CA
Fairfax, VA
Temecula, CA
Covina, CA
Quote
$59,700.00
Non-responsive
Non-responsive
Non-responsive
Non-responsive
Non-responsive
Non-responsive
Non-responsive
R3 Consulting Group, Inc. will be performing the following work tasks: 1) Document
request and review, 2) Operations Assessment, 3) Equipment Needs Assessment, 4)
Staffing Levels and Staff Development Assessment, 5) Financial Analyses, 6) Assessment
of Managed Competition, 7) Draft and Final Business Plan (see attached). R3 Consulting
Group, Inc. has provided the City of San Bernardino with consulting services in the past
and has proven to be proficient. Staff recommends that Council authorize the execution of
an Agreement and Purchase Order in the amount of $59,700.00 for business plan
consulting services. The business plan shall be completed within three months of its
inception.
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FINANCIAL IMPACT:
Funds for this service are available and have been budgeted in the FY 07-08 Budget,
Account Number 527-411-5502 Professional/Contractual Services.
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RECOMMENDATION:
Adopt Resolution.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
3 R3 CONSULTING GROUP, INC., FOR BUSINESS PLAN CONSULTING SERVICES
4 FOR THE INTEGRATED WASTE MANAGEMENT DIVISION.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That R3 Consulting Group, Inc. submitted the quote for business
plan consulting services for the Integrated Waste Management Division.
SECTION 2. The City Manager of the City of San Berna/dino is hereby
authorized to execute on behalf of said City a Vendor Services Agreement between
the City of San Bernardino and R3 Consulting Group, Inc., a copy of which is attached
hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set
forth at length.
SECTION 3. The authorization to execute the above referenced Purchase
Order is rescinded if it is not issued within sixty (60) days of the passage of this
resolution.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
2 R3 CONSULTING GROUP, INC., FOR BUSINESS PLAN CONSULTING SERVICES
FOR THE INTEGRATED WASTE MANAGEMENT DIVISION.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
meeting thereof, held on the
day of
, 2008, by the
following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ABSENT
ESTRADA
BAXTER
12 BRINKER
13 DERRY
14 KELLEY
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17
18
JOHNSON
MCCAMMACK
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24 Approved as to Form:
25 By: 1/}JttGi~1I Wh;;;J
26 James F. (fenman, City Attorney
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Rachel G. Clark, City Clerk
The foregoing resolution is
,2008.
hereby approved this
day of
Patrick J. Morris, Mayor
City of San Bernardino
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EXHIBIT A
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VENDOR SERVICE AGREEMENT
This Vendor Service Agreement is entered into this 7th day of January 2008, by and
between R3 Consulting Group, Inc., ("VENDOR") and the City of San Bernardino ("CITY" or
"San Bernardino").
WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to contract for business plan consulting services; and
WHEREAS, the City of San Bernardino did solicit and accept Req~ests for Proposals
(RFP) from a number of vendors for business plan consulting services.
NOW, THEREFORE, the parties hereto agree as follows:
1. SCOPE OF SERVICES.
For the remuneration stipulated, San Bernardino hereby engages the ServICes of
VENDOR to provide business plan consulting services as set forth in the Proposal dated
November 8, 2007, attached hereto, marked Exhibit "1" and incorporated herein by this
reference as fully as though set forth at length.
2. COMPENSATION AND EXPENSES.
a. For the services delineated above, the CITY, upon presentation of an invoice, shall
pay the VENDOR up to the amount of $59,700.00 for business plan consulting
services as set forth on page J-l and J-2 of Exhibit "1," attached hereto and
incorporated herein by this reference.
b. No other expenditures made by VENDOR shall be reimbursed by CITY
3. TERM; SEVERABILITY.
The term of this Agreement shall be for a period of one year.
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This Agreement may be terminated at any time by thirty (30) days' written notice by
either party. The terms of this Agreement shall remain in force unless mutually amended. The
duration of this Agreement may be extended with the written consent of both parties.
4. INDEMNITY.
CITY agrees to indemnify and hold harmless VENDOR, its officers, agents and
volunteers from any and all claims, actions, or losses, damages and/or liability resulting from
CITY's negligent acts or omissions arising from the CITY's performance_of its obligations
under the Agreement.
VENDOR agrees to indemnify and hold harmless the CITY, its officers, agents, and
volunteers from any and all claim, actions, or losses, damages and/or liability resulting from
VENDOR's negligent acts or omissions arising from the VENDOR's performance of its
obligations under the agreement.
In the event the CITY and/or the VENDOR is found to be comparatively at fault for any
claim, action, loss, or damage which results from their respective obligations under the
Agreement, the CITY and/or VENDOR shall indemnify the other to the extent of this
comparative fault.
5. INSURANCE.
While not restricting or limiting the forgoing, during the term of this Agreement,
VENDOR shall maintain in effect policies of comprehensive public, general and automobile
liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory
worker's compensation coverage, and shall file copies of said policies with the CITY's Risk
Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an
additional named insured in each policy of insurance provided hereunder. The Certificate of
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Insurance furnished to the CITY shall require the insurer to notifY CITY of any change or
termination in the policy.
6. NON-DISCRIMINATION.
In the perfonnance of this Agreement and in the hiring and recruitment of employees,
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical conditions, marital statns, sexual gender or
sexual orientation, or any other statns protected by law, except as permitted p.!JI'Suant to Section
12940 of the California Government Code.
7. INDEPENDENT CONTRACTOR.
VENDOR shall perfonn work tasks provided by this Agreement, but for all intents and
purposes VENDOR shall be an independent contractor and not an agent or employee of the
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of
Income Tax, Social Security, State Disability Insurance Compensation, Unemployment
Compensation, and other payroll deductions for VENDOR and its officers, agents, and
employees, and all business licenses, if any are required, in connection with the services to be
perfonned hereunder.
8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain, and maintain a business registration
certificate pursuant to Chapter 5 of the Municipal Code, and any other license, permits,
qualifications, insurance and approval of whatever nature that are legally required of VENDOR
to practice its business or profession.
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9. NOTICES.
Any notices to be given pursuant to this Agreement shall be deposited with the United
States Postal Service, postage prepaid and addressed as follows:
TO THE CITY:
Public Services Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR:
R3 Consulting Group, Inc.
4811 Chippendale Drive, Suite 708
Sacramento, CA 95841
Telephone: (916) 576-0306
Contact: Richard Tagore-Erwin
10. ATTORNEYS' FEES.
In the event that litigation is brought by any party in connection with this Agreement,
the prevailing party shall be entitled to recover from the opposing party all costs and expenses,
including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of
its rights or remedies hereunder or the enforcement of any of the terms, conditions or
provisions hereof. The costs, salary and expenses of the City Attorney and members of his
office in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys'
fees" for the purposes of this paragraph.
11. ASSIGNMENT.
VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or
encumber all or any part of the VENDOR's interest in this Agreement without CITY's prior
written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void
and shall constitute a breach of this Agreement and cause for the termination of this
Agreement. Regardless of CITY's consent, no subletting or assignment shall release VENDOR
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of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
12. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this
Agreement shall be tried and litigated either in the State courts located in the County of San
Bernardino, State of California or the U.S. District Court for the Central District of California,
Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature.
13. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
14. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to this
Agreement and their respective heirs, representatives, successors, and assigns.
15. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its
provisions.
16. ENTIRE AGREEMENT; MODIFICATION.
This Agreement constitutes the entire agreement and the understanding between the
parties, and supercedes any prior agreements and understandings relating to the subject manner
of this Agreement. This Agreement may be modified or amended only by a written instrument
executed by all parties to this Agreement.
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VENDOR SERVICE AGREEMENT
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
,2008
VENDOR
Dated:
By:
Its:
,2008
CITY OF SAN BERNARDINO
Dated
By:
Fred Wilson, City Manager
Approved as to Form:
By: u~iail~
James F. P an, City Attorney
01102108
EXHIBIT ''}''
Proposal to
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Prepare a Business Plan for the
Integrated Waste Management Division
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Presented to:
City of San Bernardino.
Public Services Department
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November 8, 2007
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\.." n ~ ConsuUing Group, Inc.
K.:..J Resources. Respect, Responsibility
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n,' ',=::2- CunsuLting <:;' roup, ,Inc.
I<..... ~ ~ur~ Responsibility ~pect
November 8, 2007 '
4811 Chippendale Drive, Suite 708
SaCramento, CA ,95841
Tel. a66-437 -3244
Fax: 916-331-9600
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Mr; Rudy Umana
Solid Waste Manager
City of San Bemardino
300 North "0" Street, Fourth Floor
San Bemardino, CA 92418
Subject: Proposal to Complete a Business Plan
Dear Mr. Umana:
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R3 Consu~ing Group (R3) is pleased to submit the attached proposal to the City of S~ Bemardino
(City) to prepare a Business Plan for the Integrated Waste Management Division. We have iril?luded
Mr. John Davis as part ,of our projeQl team,' and we believe that our projE!ct team'seXperienee anc;l
our proposed project approach Will provide a high quality produCt thst will lay the groundworkJor the
successfullong,tenn future of the City's solid waste management system:' ,
Project Team Experience
One of our core service areas is assisting public agencies that provide municipallyopeiat~ solid
waste services. Rt;lCent relevant project experience involving the. project staff proposed for thiS '
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engagement includes the following:' " " . '
. In May 2004, we conducted an analysis of the pros-cons of managed completion oftheCity's
temporary dellrisbox collection operations (Key R3 Staff- Richard Tagore-ErWin);
. In May 2005, we conducted an RFP process for managed completi(jn of the City's temporary
roll-()ff and debris box operations that, if approved by the City, would have r8Sultedin'a ,one
time payment to the City of $9.0M and an estimaled $860,odO in annuai franchise fees paid
(Key R3 Staff - RichardTagore-Erwin); , , ". ", ,,'
. We conducted the Cjty's August 2005 Collection Operations Review, (Key RS, Staff - Richard
Tagore-Erwin and William Schoen);
. John Davis has been providing ongoing assistance to the CiIY since goos. '.SpecmcaiIyMr.
Davis bas assisted Ihe City with: ' '
o Managing a proposal process 10 provide commingled' residential and solirce
separated recyCling services; and for green wasle diversion;
o AsSisting with commercial route audits, including biUing arid roEJtjng data "
reconciliation, rouleproductivity analysis, initial rOule ~iidards, arid re-routing
recomm,endations; , '
o ,Beginning a review and analysis of roll-()ff an,dtemparary bin service;
o Assisting with commercial bin inventory syStem implementation; .
o Providing input on strategies 10 reduce residential recycling and !;)reen waste
contamination; ,
o Preparing an initial analysis and report oil service rate calculations, including cost
allocation for residential, commercial and roll-off services; ,
. We are completing a cost-service-study, operational review, and rate setting process for tlie
City of Redlands (Key R3 Staff - Richard Tagore-Erwin, William Schoen, and Ric
Hutchinson);
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Qjchard J,Uutchinson . Qjchard T agore-b.rwin . 6teve Uarriman . \\!iUiam 6choen
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,Mr. Umana
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.' We recently completed the revi~w of the C~ of TaCOl'J1a's municipal 'ooIIection.tranSferand
disposal operations (Key R3 Staff '"-Richard Tagore-ErWin lllld William SChoen);, " ,
. We recently assisted the C~ofElk Grovllwith the analysis Qfthe pros and cons and
financial impacts aSsociated with a Cify:-6wned T(ansfer Station and HHW Facility (Key Fls" '.
Staff'-Richari:lTagore"Erwin,Willilll'lJSchQEln,andJeffOonlevy); " ", ,",
. We recently conducted municipal enterpiisefund cost-of-serVice studies for Amador; and"
Merced County; and the Cites ,of Fresno and ,Berkeley (Key R3 Staff ,-William SchQen, arid
Ric Hutchinson); ", ' ' " ' " ' ' ,,', , , ' ,
. We are currently assisting the Sonoma County Waste Management Agency with the review '
and evaluation of franchise contracting and Program' options (Key R3 Staff - Richard
Tagore-Erwin and Jeff Donh:;vy); , ' " ' "
. Weare currently assisting the City of Sacramento with a 20-YearMasterPlan looking at
facility needs (Key R3 Staff -WiRiam Schoena:nd 'Jeff Donlevy); and
. We are currently assisting the Yuba-Sutter R~gional Waste' Management Agency with the
, development of a Strategic ,Plan to giJidethe Agency's cOllection, processing, and-clisposal
needs for the next 20 years (KeyR3 Staff - Richard Tagore~Erwin,William Schoen and Jeff,
Donlevy). ' '
Project Approach
The City has identified a wide range of iSSues to berevillwedand evaluated as part of this planriil)g
process. Our approach to this engagement is designed to providi) the City with an effective and'
concise analysis of the various issues that will provide a framework for the Business Plan. We will
draw upon the experience gained from our prior work for the City, and our cummt and prior work for
other municipal operations. Specifically, our focus will allow the City to answer questions related to:
. Adequacy of current equipment aoet staffing; ,
. Adeq!l/;lcy of current billil)g and customer service systems;
. Adequl;lCy of current maintenance practices;
. Identification of any addition/;ll equipment, softWare, and/or staff resource needs;
., Identification of any futUre processing and transfer facility needS; ,
. :Estimates,of additionai capital and operation costs toac;ldress identified deficiencies;
. Current and future Cost of ServicEl by Line of Business (residential, commercial, roll,.off.
etc); and '
. Short /;lnd long-term cost impaCtori the City for improving thecurrElflt operations
compared to contracting for some or atlc61lection services. '
We have a strong commitment to helping improve municipal operation~ while balancing the need for
fiscally sound operations. We envi$,ion the Business Plan to be used"by City slllff and elected
.officials as a decision making tool to guide the City's Integrated Waste Management Division f6rthe
ne~ 5 -15 years. '
We appreciate the 6pportunity~tosubmlt this proposal to the City of San Bemardino and have not
violated the contact restrictions detailed In 'the ,RFP. Please feellrae to cOntact me or Mr.
SChoen at (916) 576"0306, or e-mail usatrterwin@r3cgi.comorwschoen@r3cgi.com. if you have'
any questions or comments regarding'our proposal. ' '
, Sincerely,
R3 CONSULTING GROUP
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Cover Letter ,.....,....,................................................... ............................ ........ ....... .......... 1
Table of Contents ...........................................................................................................3
A: Firm Background ............. ............ ............................................................. ................. 5
B: Conflict of Interest......................................................................................................5
C. Practice Areas.............. ............ ...................... ........................................................... 5
D. Project References...... .......... ......... ....... .................................................................... 8
E: Key Personnel Qualifications and Experience .........................................................16
F: Scope of Work.........................................................................................................22
Background ................. ...................................................................................... 22
Approach....... ...... ..... .......... ...... ................................. ....... ............ ..................... 22
Work Tasks ............... ...... ................. ........................................................ .........~ 23
G: Schedule ............................... ............ ........ .............................................................. 28
H: Willingness to Sign Service Agreement ................................................................... 28
I: Disclosures ..... ...... .......... ......... ... ............ ........... ...... ..... .... ...... ......... ....................... 28
J: Project Budget (Separate Sealed Envelope) ........................................................... J-1
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""""" A: FIRM BACKGROUND
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R3 Consulting Group, Inc. ("R3") specializes in management consulting services for solid
waste and water I wastewater utilities. We provide a range of services to our municipal
clients, including competitive procurement of collection, processing and disposal
services; development, implementation and monitoring of service contracts and
franchise agreements; rate reviews and cost-of-service studies; financial and technical
analysis of programmatic and policy altematives; operational reviews and performance
assessments; and management studies and compliance audits.
R3 was incorporated in California in 2002 and maintains offices in Culver City and
Sacramento, California. We can be contacted at:
R3 Consulting Group, Inc.
Northern California Southern California
4811 Chippendale Drive 4361 Keystone Ave.
Suite 708 Culver City, CA 90232
Sacramento, CA 95841 310-559-7451
916-576-0306
Resources, Responsibility and Respect - these are the guiding principles of R3
Consulting Group. Our mission is to assist municipal clients in identifying challenges,
evaluating alternatives, and implementing cost-effective, environmentally sound and
"community-friendly" solutions. For more than 30 years, R3 team members have
assisted municipal clients to implement a variety of programs, services and facilities.
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B: CONFLICT OF INTEREST
R3 understands the sensitive nature of conducting projects for public agencies. We are
strongly committed to providing our clients with unbiased opinions and
recommendations. Accordingly, R3 only provides services to public agencies. John
Davis, who is included on the R3 team for this project, also only provides services to
public agencies. R3 and John Davis do not have any relationship and/or
employment agreement with any private waste haulers and R3 and John Davis do
not provide services to any private waste haulers.
C: PRACTICE AREAS
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OPERATIONS AND PERFORMANCE REVIEWS
R3 staff has extensive experience both operating and evaluating solid waste
management systems, and we use that experience to assist our clients with the review
and analysis of both municipally operated and franchised solid waste operations. We
understand the challenges associated with operating municipal systems, as well as
administering franchised solid waste services. In either case, we strive to generate
meaningful recommendations based on documented analysis with a focus on
opportunities to improve safety and customer service, increase productivity and reduce
costs.
R3
Paae 7
Our operations and performance review services include the following:
. Review of Contract compliance by a private operator;
. "Time and motion" analysis of collection and transfer operations;
. Development of "target-productivity" standards and performance enhancement
strategies;
. Analysis of vehicle routing systems;
. Review customer service and billing functions; and
. Development of "performance benchmarking" metrics to measure system
performance and improvements.
FINANCIAL AND RATE ANALYSIS
R3 staff members have broad experience in performing financial and rate structure
analysis projects for municipalities, public utilities and regional authorities. As a result,
we provide our clients with the financial information and comparative analysis required to
make sound, informed decisions. In addition, our understanding of the fundamental
challenge of local governments to balance complex services and programs with the
realities of budget constraints allows us to provide effective and meaningful financial
consulting services to our clients. Finally, our primary goal on financial and rate analysis
projects is to strike a balance of representing the interests of our municipal clients with
ensuring that the contractor(s) are compensated fairly and in accordance with the terms
of their Contract.
Our financial and rate analysis services include the following:
"-' . Rate audits and rate structure analysis;
. Cost-of-service and revenue requirement studies;
. Financial modeling and analysis of funding alternatives;
. Development of refuse vehicle impact fees;
. Audits of billing systems and franchise fee payments; and
. Budgeting and long-term financial planning.
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PROCUREMENT ASSISTANCE SERVICES
R3 provides a range of procurement assistance services for our municipal clients,
ranging from assisting jurisdictions with "sole-source" negotiations with an existing
service provider to managing all aspects of a competitive procurement process for
refuse collection, recycling, processing and disposal services. We typically provide "full-
service" procurement assistance, meaning that we work closely with our client staff on all
aspects of a competitive procurement project. R3 first works with staff and community
members to develop the scope and design of programs, facilities and services. Once
this is complete, R3 prepares the Request for Proposals package, drafts the franchise
agreement or operating contract, conducts pre-proposal meetings with potential
contractors and written responses to questions, assists the evaluation team with
proposal evaluations, and prepares staff reports and presentations to support the
committee recommendations. Finally, we typically prepare and conduct workshops and
community forums to solicit direct input on program design from residents, business
groups, and elected officials.
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Our procurement services include the following:
. Development and evaluation of policy and programmatic alternatives that meet
the specific needs of the community;
. Design of performance standards, incentives and penalties related to Contractor
performance;
. Development of an annual adjustment mechanism to the Contractor
compensation and user rates and fees;
. Preparation and distribution of the Request for Proposals package, including the
franchise agreement and operating contracts;
. Assistance with the technical and financial evaluation of proposals; and
. Negotiation, development and monitoring of contracts and franchise agreements.
MANAGEMENT CONSULTING
R3 provides management consulting services to public agencies and local governments
charged with implementation of business practices and public/private partnerships. 'The
primary objective of our management consulting service is to maximize our clients return
on the investment of financial and human resources. R3's management consulting
practice provides objective assessments geared towards helping our clients arrive at
effective business decisions in a timely and informed manner.
Our management consulting services include the following:
. Strategic and long-range planning services;
. Organizational design and information flow analysis;
. Management audits and "process-mapping" exercises;
. Consensus building and decision-making techniques;
. Allocation of resources to meet stated objectives;
. Tracking and monitoring of performance metrics; and
. Information system assessments and design,
SOLID WASTE PLANNING
R3 staff have designed and implemented numerous solid waste collection, recycling,
composting and disposal programs and facilities for cities, counties and regional
authorities in California and throughout the United States. R3 emphasizes the creation
of technically and financially sound solutions that can be effectively implemented and
maintained over the long-term. Our broad experience has allowed R3 to address a
variety of issues that typically confront our municipal clients during the implementation of
programs and facilities, including regulatory compliance, community outreach and public
education, land-use planning and permitting, inter-jurisdictional coordination, AB 939
planning requirements and diversion mandates, labor issues and customer service and
billing functions.
Our solid waste management planning services include the following:
. Evaluation, design and implementation of collection, processing, marketing and
disposal programs and facilities;
. Design and implementation of public education and outreach programs,
community workshops and public opinion surveys;
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. Development of local ordinances to support contract requirements and new
programs, including Construction and Demolition ordinances; and
. Preparation and adoption of AB 939 planning documents, including SRRE's and
HHWE's, new base-year studies and annual reports.
0: PROJECT REFERENCES
The following includes brief descriptions of projects that R3 team members have
completed.
~ Performance Review: Tacoma, WA
Jij; R3 conducted a comprehensive management and performance audit of the City
of Tacoma's Solid Waste Management Division (Division), under subcontract to
Camp Dresser & McKee. The objective of the review was to evaluate the Division's
current performance and identify opportunities for improvements related to safety,
efficiency, productivity, customer service and cost.
R3 Team Member: William Schoen, Project Manager
Steve Harriman and Richard Tagore-Erwin, Project Analysts
Contact: Carol Parvey, P.E., Asst. Division Manager, (253) 593-7715
747 Market Street, 4lh Floor, Tacoma, WA 98402
Q\ o...'...ctlII..._...... ....:iti..' Enterprise Fund Financial Model and Rate Study;
'81 ~_~ and Cost of Service Study: Redlands, CA
R3 assisted the City of Redlands ("City") with a Solid Waste Rate Study. The
City owns and operates a full-service municipal solid waste collection and
disposal system that serves residential and commercial customers. The City
had not conducted a comprehensive rate study or implemented adjustments
to its rate structure since 1994. The current rates provided adequate
revenue to cover the City's cost of operations, but the City believed that the
current rate structure did not correctly allocate the actual service costs between
customer classes (residential and commercial) and between different service levels
(commercial bin collection). Further, the current commercial rate structure was based
solely on the volume of material collected and did not account for collection frequency.
R3 Team Members: Richard-Tagore, Project Manager
Ric Hutchinson and William Schoen, project Analysts
Contact: Mr. Gary Van Dorst, Solid Waste Manager, (919) 798-7698
35 Cajon St. Ste 15A, Redlands, CA 92373
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........ A Master Plan: Yuba-Sutter RegJonal Waste Management
\.~ Authority
The Regional Waste Management Authority ("RWMA") is a
Joint Powers Authority and Regional Agency for Yuba County, Sutter
County, and the Cities of Marysville, Yuba City, Wheatland, and Uve
Oak, and is responsible for coordinating all solid waste program
planning and reporting for these jurisdictions. Each of the Member
Jurisdiction's franchise agreements with YSDI will terminate on December 31, 2011, and
through the franchise agreements, YSDI (and other Norcal subsidiaries) also provide for.
the processing, transfer, composting, and disposal of RWMA's refuse, recyclables and
green waste materials. R3 is currently assisting the RWMA develop a Long-Term
Municipal Solid Waste Master Plan to address future collection, processing and disposal
needs at the termination of the franchise agreements.
R3 Team Members: Richard Tagore-Erwin & Ric Hutchinson, Co-Project Managers
William Schoen, Myriam Arce, & Jeff Donlevy Project Analysts
Contact: Keith Martin, RWMA Administrator, (530) 634-6890
2100 B Street, Marysville, CA 95901
.A. Solid Waste Procurement Services; Performance Review; and
'JIIl( Collection System Privatization: Colton, CA
The first phase of this project focused on evaluating the City's solid waste and recycling
,- operations, including a management analysis of the City's Sanitation and Recycling
'- Division. R3 team member Richard Tagore-Erwin led the project team in determining
the capital and operating costs necessary to increase the efficiency of the City's
collection system while decreasing the cost to ratepayers. Tbis entailed providing
recommendations on routing, collection vehicles and staff utilization and collection
container alternatives. Additional analysis was performed on the potential cost savings
to the City if collection operations were privatized.
Several options were presented to the Colton City Council, after which the Council voted
to privatize the collection operations. Mr. Tagore-Erwin then prepared a
.. detailed Request for Formal Qualifications and a Request for Formal
j '.. Proposals, evaluated responses to the procurement documents and
negotiated the franchise agreement.
R3 Team Member: Richard Tagore-Erwin, Project Manager
Contact: Mr. Nabar Martinez, City Manager (currently City Manager for
City of Redlands), (919) 798-7698
35 Cajon St. Ste 15A, Redlands, CA 92373
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'- '" Collection System Billing Audit: Santa Barbara, CA
The City of Santa Barbara ("City") engaged R3 to assess the accuracy of customer
billings for franchised services and to determine customer satisfaction levels. In order to
assess the accuracy of customer billings, R3 developed a protocol to test and compare
the City's billing records with the haulers' service records to document the extent to
which residential subscribers are billed in accordance with the approved customer rates
and subscription levels. R3 then compared three years of billing data and documented
the changes, which occurred during the test period.
In addition, R3 conducted a "route-audir to determine the extent to which residential
subscribers are billed correctly for the level of service provided, and to determine if
current billings are consistent with the appropriate rate schedule. Using service level
information provided by the City and the haulers, R3 conducted field audits in the two .
franchise zones to verify the size and type of containers at each residence and the
method of collection (semi-automated or manual collection methods, backyard or
curbside collection). Field notes and photographs of containers observed at each
residence compared to information provided by the City and the two haulers.
R3 also conducted a telephone survey of random residential customers to determine
customer satisfaction with services specifically related to customers receiving
"requested" or ':required" green waste containers.
R3 Team Members: Richard Tagore-Erwin, Project Manager
Myriam Arce, Project Analyst
'-' Contact: Steve Macintosh, Environmental Services Supervisor,
(805) 897-1809
630 Garden Street, PO Box 1990, Santa Barbara, CA 93102
. Performance Review; Contract Compliance Audit; and
Financial Compliance Review: Salinas, CA
R3 was engaged by the City of Salinas to conduct a comprehensive
performance review of its franchised hauler. The City of Salinas (City) has an exclusive
franchise agreement with Browning Ferris Industries/Allied Waste
(Company) for the collection; processing and disposal of residential
and commercial solid waste and recyclables. The City's franchise
agreement allows it to conduct a performance review to ensure that
the Company is in compliance with the stated terms and conditions.
R3 was selected by the City to conduct that review.
R3 Team Members:
Contact:
Richard-Tagore Erwin, Project Manager
William Schoen and Jeff Donlevy, Project Analysts
Ms. Denise Estrada, Maintenance Services Director,
(831) 758-7152
426 Work Street, Salinas, CA93901
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Performance Reviews
Clients lIiclude: EI Dorado County, Citrus Heights, Dublin,
Sacramento, Salinas, San Bernardino, San Leandro, Santa Barbara,
and Windsor, CA, Tacoma, WA, and Yuba-Sutter Regional Waste
Management Authority
R3 team members have assisted numerous jurisdictions with the review of both
municipally operated and franchised solid waste management services. including
collection, transfer and landfill operations. These engagements have included:
. Performance Reviews - To identify opportunities to improve safety,
customer service, program effectiveness and costs;
. Contract Compliance Audits - To determine the
extent to which the franchisee is complying with the
provisions of its franchise agreement I operating
contract; and
. Financial Compliance Reviews - To verify that the Company is fulfilling the
financial terms of tlie franchise agreement I operating contract. including the
proper billing of customers and the accurate remittance of payments to the
jurisdiction.
Our performance reviews are geared toward assessing the effectiveness of operations
leading to meaningful recommendations for system improvements related to:
. Safety; Effectiveness; and
. Customer Service; . Overall Cost Effectiveness.
. Diversion program
. Those engagements include: review management and administrative
functions; collection, transfer and processing operations; vehicle routing,
billing and route audits and vehicle maintenance and repair functions. We
have also performed time and motion analysis. developed "target
productivity standards: rerouted collection systems and developed
performance benchmarks to measure system performance, enhance diagnostic review
capabilities and identify opportunities for improvement.
Benefits:
TOW. or .
WINDSOR
. Strategic plan and economic analysis to address critical short-term operational
issues
. Recommended framework for long-term continuous improvement process
R3 Team Members: Richard Tagore-Erwin, Project Manager
William Schoen. Project Analyst
Contact: Various - Available Upon Request
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"'- Rate Studies; Cost of Service Studies; and Enterprise Fund Financial
Models
Clients Include: Counties of Amador and Merced, CA, and Cities of Berkeley,
Fresno, Merced, Redlands, and San Jose, CA
, . R3 Consulting Group team members have prepared Refuse
~ Service Rate Studies, Cost of Service Studies and Enterprise Fund
C DUN T y Financial Models for multiple jurisdictions. These projects have
included, among other things, rate setting and financial modeling for _
collection, transfer and landfill operations. '
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As part of these projects we have conducted a wide range of analysis and . ,. .
financial modeling including:
. Evaluating short (1- 5 year) and medium term (6 - 10 year) capital and operating
and maintenance expenses;
. Identifying short and medium term revenue requirements, including various reserve
account funding levels;
. Analyzing various funding options and rate adjustment scenarios;
. Revising rate structures to comply with Proposition 218; and
. Revising commercial rate structures to support collection efficiencies.
We have also prepared and facilitated all necessary Proposition 218 requirements for a
number of jurisdictions including the required protest hearing. A number of these
projects have also included development and/or review of solid waste development fees
to provide funding for capital expenses needed to accommodate growth
m The financial models that have been developed as part of these projects
. have been designed to provide the jurisdictions with the ability to evaluate
various rate adjustment cycles (e.g., annual rate adjustments
or rate adjustments every two, three or five years). The e..
financial models have been designed using Excel and Visual
for Basic Applications (VBA) program language and are intended to serve .
as ongoing rate and financial planning tools for the jurisdictions.
R3 Team Members: Ric Hutchinson and William Schoen, Project Managers
Steve Harriman and Jeff Donlevy, Project Analysts
Contact: Various - Available Upon Request
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Solid Waste Procurement Services ~~~~
Clients Include: 'Merced County, Burbank Sanitary District, Castro Valley Sanitary
District, South Bayslde Waste Management Authority, Bradbury, Duarte, Citrus
Heights, Colton, Dublin, Irwlndale, Piedmont, Rancho Cordova, Rancho Murieta,
Rancho Palos Verdes, Roiling Hills Estates, San Jose, San Ramon, Santa Rosa,
Upland, and Windsor, CA
R3 has assisted numerous Cities and Counties throughout Califomia to
an'" ^ solicit proposals for solid waste and recycling services, as well as
SANJOSE implement significant changes to collection programs. Some project
c;.;;w ","';;;;iiiWi goals have included:
. Conversing curbside recycling program from multi-bin to automated, single stream
programs;
. Increasing yard waste collection service from every-other-week to
weekly collection;
. Incorporating multi-family and commercial recycling services in the
basic collection service rate; and
. Reducing all residential and commercial customer rates.
Our work efforts include developing, drafting and advertising of solid waste
. collection proposal packages. As part of these services, R3 has developed
! procurement documents, including the procurement instructions, the draft
contract language and the proposal cost and evaluation forms. In addition,
R3 has facilitated mandatory pre-proposal meetings, provided assistance in
the preparation of responses to questions, assisted in the evaluation of ~
the cost proposals, and prepared contract award recommendations. ..
Finally, R3 has assisted in negotiating the final contract terms and WiNDSOR
conditions, and presented the recommendations at public hearing.
R3 Team Members: Richard Tagore-E..win, Ric Hutchinson, Steve Harriman, and
William Schoen, Project Managers
Jeff Donlevy, Myriam Arce, and Carrie Baxter, Project Analysts
Various - Available Upon Request
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Contact:
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Rate Reviews and Indexed Rate Adjustments
Clients Include: Counties of Amador, EI Dorado, and Douglas, NV, Cities .
of American Canyon, EI Cerrito, Monrovia, Pleasanton, and Tracy, Novato
Sanitary District and Yuba-Sutter Regional Waste Management Authority
R3 team members have been assisted numerous jurisdictions with detailed rate reviews
and indexed rate adjustments for their franchised solid waste service providers.
In general the reviews involve review of the franchisees Detailed or Indexed Rate
Application to confirm that:
. It is mathematically accurate and logically consistent;
. It is consistent with the applicable terms and conditions of the Franchise
Agreements and, as applicable, Rate Adjustment Guidelines; and,
. The bases for the various projections are reasonable and supported with
appropriate documentation, as applicable.
As part of the Detailed Rate Reviews the following tasks are also generally performed:
. Agree prior year results to audited financial statements;
. Perform variance analysis of historical revenues and expenses and _"
obtain explanations for significant variances;
. Review assumptions used to forecast revenues and expenses;
. Review assignment of revenues and expenses to franchised and
non-franchised operations;
. Recommend adjustments to the projected revenues and expenses, as appropriate;
and,
. Recalculate the revenue requirement and required rate adjustment.
Q. In many cases our reviews include recommendations for formalizing specific
, policies and/or procedures in support of the preparation and review of future
. Rate Applications, which include documenting allowable and non-allowable
expenses, profit levels, officer compensation levels and methods used to
allocate costs among franchised and non-franchised operations.
R3 Team Members:
Ric Hutchinson, Project Manager
William Schoen, Project Manager
Contact:
Various - Available Upon Request
AB 939 Planning and Reporting Services
Clients Include: Over 65 California Cities and Counties Including EI Dorado, Los
Angeles, Marin, Monterey, Orange, Placer,Sacramento, San Bernardino, Santa
Barbara, Santa Cruz and Sonoma
The diversion mandates and reporting requirements of the Integrated Waste
Management Act of 1989 (AS 939) places a heavy burden on California Jurisdictions.
Each city and county was required to prepare and submit a Source Reduction and
Recycling Elements (SRRE) and Household Hazardous Waste Element .(HHWE). Once
adopted, the SRREs and HHWEs often have failed to serve as effective planning
documents. In other cases, despite aggressive program implementation, many
jurisdictions find that they cannot meet the 50 percent goal. Many of these jurisdictions
have been issued a compliance order by the California Integrated Waste Management
Board.
R3 team members Richard Tagore-Erwin, Steve Harriman and Susan Collins have
provided a range of AS 939 services to California communities. They have prepared
SRREs, HHWEs and Annual Reports to the California Integrated Waste Management
Board that describes the progress of program implementation. Mr. Tagore-Erwin, Mr.
Harriman, Ms. Collins have prepared several waste generation studies for purposes of
establishing "new base years', to meet the requirements contained in the compliance
orders.
They developed specialized surveys for each jurisdiction and targeted effective sources
'- of diversion. Their efforts resulted in all but one jurisdiction exceeding the 50 percent
diversion goal.
Mr. Tagore-Erwin, Mr. Harriman, and Ms. Collins have also managed
and participated in several business waste audit programs designed to
both document existing diversion practices and to provide technical
support to promote increased diversion. These programs have assisted
jurisdictions in targeting commercial diversion programs to meet the
needs and in determining a feasible diversion rate for their commercial
waste stream.
Benefits:
. Cost effective program implementation
. Approved AS 939 planning documents
. Accurate base year generation tonnages
. Compliance with AS 939 diversion requirements
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R3 Team Members:
Richard Tagore-Erwin, Project Manager
Steve Harriman, Project Analyst
Susan Collins, Project Analyst
Contacts:
Multiple Contacts throughout California
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E. KEY PERSONNEL QUALIFICATIONS & EXPERIENCE
Richard Tagore-Erwin
Mr. Tagore-Erwin's project work encompasses all aspects of solid waste management
and environmental consulting. Over the past 20 years, Mr. Tagore-Erwin has conducted
over 100 solid waste procurement and management consulting projects for a variety of
public agencies throughout Califomia and Arizona. These projects include complex rate
audits, performance and compliance reviews, and competitive procurement of solid
waste and recycling programs and facilities. Mr. Tagore-Erwln was the project
manager for the City of San Bernardino's managed completion analysis of the
City's temporary roll-o" and debris box operations, and the City's Collection
Operation Review. He is currently assisting the City of Redlands complete its cost of .
service study, and has conducted management reviews and collection procurement
projects for the Cities of Colton and Upland. In addition to his procurement and financiaJ
analysis work, he has managed over 100 projects encompassing preparation of AB 939
plans, development of Eco-lndustrial Parks, administering hauler monitoring and
reporting programs, and conducting financial, management, and operations reviews. He
routinely conducts public workshops and participates in Board of Supervisor and City
Council hearings. Mr. Tagore-Erwin holds both a Bachelor and Master Of Arts Degree in
Political Science, and is a certified meeting facilitator.
John Davis
Mr. Davis has worked on integrated waste management issues for over 20 years. With
over 35 years of local government management and community development
experience, as both staff and consultant, he has completed projects for more than 50
California clients.. His work includes municipal recycling and solid waste program
support, including development and management of waste diversion programs and
facilities. Mr. Davis recently completed a commercial route audit for the City of San
Bernardino, working with driver, supervisor, and billing records to document
account errors, take corrective action, and propose system changes to avoid
ongoing errors. In addition, for the past twelve years, he has managed the Victor Valley
Materials Recovery Facility operating contract, reviewing and reconciling monthly reports
showing deliveries by origin, characterization results, materials allocation and revenue,
and disposal allocation.
William Schoen
Mr. Schoen has more than 20 years of solid waste operational and consulting
experience. He has managed recycling and . landfill operations and assisted numerous
jurisdictions with the review of both municipally operated and franchised solid waste
management systems. His expertise lies in the areas of operational and financial
analysis, service procurement and contract negotiations, and strategic planning and
program design. Mr. Schoen assisted Mr. Tagore-Erwln on the City's Collection
Operation Review and the City of Redlands Cost of Service Study. He has
reviewed the operations and finances of numerous municipal and franchised operations,
performed extensive time and motion analysis, assisted jurisdictions with refining work
load standards and revising collection routes, and projected refuse vehicle street
maintenance impacts for purposes of recovering associated costs. Mr. Schoen holds a
Bachelor of Science Degree in Bioengineering.
.l'"~~"'-
......... Jeff Donlevy
Mr. Donlevy has over 15 years of experience in the solid waste and recycling industry.
He has extensive transfer station and material recovery facility (TSI MRF) experience
and has managed all aspects of facilities ranging from 100 to 6,000 tons per day. Mr.
Oonlevy has experience with facility design and proce$slng equipment selection
and layout, and has been Involved In MRF start-up and expansion In Chino, San
Jose, Sacramento, and Sunnyvale. He has also conducted negotiations, administered
collective bargaining agreements, implemented facility maintenance programs, and
marketed recyclable materials domestically and intemationally. Mr. Donley's other
assignments have included collection operation and processing procurement, contractor
performance reviews, solid waste master planning, and collection system routing
analysis. Mr. Donlevy holds a Bachelor of Arts Degree in Business Administration and
Economics.
Ric Hutchinson
Mr. Hutchinson is a Florida Certified Public Accountant with more than 30 years of
experience in the fields of accounting, auditing, and financial and management
consulting for state and local governments. He has an extensive background in
performing rate audits and providing financial analysis, in addition to procurement of
solid waste collection and recycling services, and preparation of solid waste and
construction and demolition ordinances. Mr. Hutchinson is currently managing our
rate review projects for the cities of Dublin, Elk Grove, Fresno, and Pleasanton.
He also has completed financial analysis and modeling projects for EI Dorado County,
"'- and the cities of Redlands, Santa Rosa, Citrus Heights, Rancho Cordova and San Jose.
He is a nationally recognized speaker and serves on the SWANA Faculty. Mr.
Hutchinson holds a Bachelor of Arts Degree in Accounting.
Susan Collins
Ms. Collins is R3's Southern Califomia Practice Director and has specialized in
consulting to government clients on solid waste issues for 18 years. She has assisted
over 70 public agencies with their solid waste and recycling programs. She has
managed projects on AB 939 compliance and diversion, financial modeling,
sustainability indicators, solid waste market studies, used oil program management, rate
and fee audits, management of franchise agreements, facility planning, conversion
technologies, recycling public education and outreach, and solid waste ordinances. Ms.
Collins currently serves on the Board of Directors of the California Resource Recovery
Association as the Governmental Affairs Liaison and was previously the CRRA
treasurer. She holds degrees in Manufacturing Engineering from Boston University and
Business Administration (MBA) from the University of California at Los Angeles.
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Resume - Richard Tagore-Erwin
Over the past 18 years, Mr. Tagore-Erwin has worked with public agencies to design,
evaluate, and implement solid waste collection, processing, disposal, and administrative
operations. His work focuses on procurement, financial analysis, operational review, and
sustainable development. Mr. Tagore-Erwin has served as project manager or had
significant involvement with the following projects:
PERFORMANCE REVIEW AND MANAGEMENT EVALUATION
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California Communities: Bell Gardens, Colton, Garden Grove,. Manteca, Monrovia,
Rancho Palos Verdes, San Bernardino, San Leandro, Upland, Windsor, and; Amador
County
Arizona Communities: Gilbert, Glendale, Phoenix, Scottsdale, and Maricopa County
Mr. Tagore-Erwin reviewed management structures, job classifications and qualification
requirements, and billing and customer service systems. He also conducted on-site
inspections of collection operations and maintenance procedures, and reviewed routing
and route efficiency. He analyzed operational and financial impacts of implementing
automated collection systems, single-stream recycling programs, and variable can rates
for residential and commercial customers.
RATE REVIEW AND FINANCIAL ANALYSIS
California Communities: Capitola, Garden Grove, Redlands, Sacramento and EI
Dorado County
Nationwide Communities: Scottsdale, Arizona and Douglas County, Nevada
Project Manager: Mr. Tagore-Erwin assisted in reviewing rate applications for franchise
haulers. As part of his efforts, he reviewed financial statements and assisted in the
preparation and analysis of pro-forma rate models. He also conducted Peer Community
Surveys to determine if proposed rates were consistent with surrounding market rates.
He assisted in working sessions with the Cities and Counties and their franchised
haulers, prepared the reports, and assisted in the presentations to City Councils and
County Boards of Supervisors.
SOLID WASTE AND RECYCLING PROCUREMENT SERVICES
California Communities: Bradbury, Colton, Duarte, Irwindale, Monrovia, Montebello,
Rancho Murieta, Rancho Palos Verdes, Rolling Hills Estates, San Bernardino, San
Jose, San Ramon, Santa Rosa, Upland, Sacramento County and Santa Barbara
County
Mr. Tagore-Erwin developed and designed service terms and conditions, franchise
agreements and contracts, and cost proposal forms for the solid waste and recycling
programs. He assisted in the preparation of the solid waste and recycling procurement
documents, conducted pre-proposal conferences and interviews, prepared RFP
addenda, negotiated final franchise agreements and contracts, and presented
recommendations to City Councils and County Boards of Supervisors.
SOLID WASTE FACILITY EVALUATION AND DEVELOPMENT
California Communities: Marin County, Sacramento, Sacramento County, Santa Cruz,
San Gabriel, South Pasadena, Western Placer Solid Waste Authority
Arizona Communities: Phoenix and Tucson
Project Manager: Mr. Tagore-Erwin prepared feasibility plans, conducted performance
testing, and evaluated processing equipment and facility layouts. He administered .
procurement processes for MRF and compost equipment and operators, reviewed
operating contracts, provided contract language amendments, prepared secondary
markets analyses, developed marketing agreements, and reviewed protocol for material
acceptance. Mr. Tagore-Erwin also conducted facility tours, made presentations to
community groups, City Councils, and Boards of Supervisors.
--. CONTRACT COMPLIANCE, MONITORING AND REPORTING
California Communities: Irwindale, Marin County, Monrovia, Montebello,
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Sacramento, Sacramento County, San Bemardino County, Santa Rosa and Westem
Placer Solid Waste Authority
Arizona Communities: Phoenix
Project Manager: Mr. Tagore-Erwin prepared hauler monitoring and reporting
programs for single jurisdictions and regional agencies. He conducted on-site audits of
hauler financial and operational records. He also developed and implemented reporting
databases by jurisdiction, facility used, material type, and tonnage.
EDUCATION
Bachelor of Arts in Political Science, University of Hawaii, Manoa
Master of Arts in Political Science, University of Hawaii, Manoa
Resume - William Schoen
Mr. Schoen is an engineer with more than 20 years of solid waste operational and
consulting experience. He has managed recycling and landfill operations and assisted
numerous jurisdictions with the review of both municipally operated and franchised solid
waste management systems. His expertise lies in the areas of solid waste operations
and financial analysis. Mr. Schoen has served as project manager or had significant
involvement in the following projects:
OPERATIONS AND PERFORMANCE REVIEWS
California Communities: Folsom, Los Altos, Orange, Sacramento, Salinas, Santa
Cruz, Stanford University, San Bemardino County, Stanislaus County, Contra Costa
Integrated Waste Management Authority, Yuba Sutter Regional Waste Management
Authority and South Bayside Waste Management Authority
Washington Communities: Olympia, Tacoma
Performed operations and performance reviews of municipal and franchised solid waste
collection, transfer, landfill and material recovery operations. Studies including time and
motion analysis, evaluation of collection productivity, cost of service allocations, macro-
and mic.ro-routing of collection systems, variance analyses, baseline and benchmarking
studies to identify key areas to target for operational improvements, route and billing
audits and contract compliance reviews.
RATE REVIEWS
California Communities: Alameda, American Canyon, EI Cerrito, Elk Grove, Gridley,
Livermore, Mil/brae, Tracy, Sunnyvale, Val/ejo, Stanislaus County, Contra Costa
Integrated Waste Management Authority, Novato Sanitary District, South Bayside Waste
Management Authority, West Contra Costa Integrated Waste Management Authority and
Yuba-Sutter Regional Waste Management Authority .
Managed and assisted with numerous rate review involving divisions of Waste
Management, Allied, Republic, Norcal and other regional and local franchised haulers.
Responsibilities included reviewing revenue and expense projections, variance analysis,
allocations among franchise and non-franchised operations and lines of business,
performance, tonnage projections, balancing account calculations, recyclable material
processing costs and material revenues.
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RATE MODELING I RATE STUDIES/COST OF SERVICE STUDIES
California Communities: BfJrkeley, EI Cerrito, Folsom, Fresno, Uvermore, Merced,
Millbrae Los Altos, Redlands, Amador County, Merced County and Ventura County
Evaluated current and historical budgets, projected capital and operating costs,
developed financial and rate models, performed cost of service analysis, evaluated and
designed rate structures, and evaluated various rate adjustment scenarios.
EDUCATION
Bachelor of Science Bioengineering, University of Pennsylvania
Resume - Jeff Donlevy
Since 1991, Jeff Donlevy has worked with private recycling and solid waste operations.
His experience includes management of material recovery facilities, transfer stations,
buy back centers, hazardous waste programs and facilities, landfill agreement
negotiations. He has been responsible for monthly tonnage, origin and diversion
reporting and analysis at several solid waste facilities.
COMPLIANCE REVIEW AND RATE ANALYSIS
California Communities: Salinas, Tracy, Dublin, Yuba-Sutter Regional Waste
Management Authority, and Novato
Mr. Donlevy performed operations and performance reviews of municipal and franchised
solid waste collection, transfer, landfill and material recovery operations including .
diversion reporting, allocation methodologies, variance analyses, verify recyclable
material revenue calculations, verify Califomia Redemption Values (CRV) calculations,
route and billing audits, tonnage projections, and recyclable material processing costs.
SOLID WASTE AND RECYCLING PROCUREMENT SERVICES
California Communities: Town of Windsor, Piedmont, Castro Valley, and Sonoma
County
Mr. Donlevy assisted in with the preparation of solid waste and recycling procurement
documents. This included developing and designing service terms and conditions,
contracts for services and cost proposal forms for the solid waste and recycling
programs.
GENERAL MANAGER -RECYCLING AND TRANSFER STATIONS, 1991-2006
Mr. Donlevy served as the General Manager for various facilities for 15 years. His
responsibilities included the daily operation of a solid waste transfer station and material
recovery. Mr. Donlevy managed over 200 employees, including transfer drivers,
equipment operators, scale attendants, laborers, and maintenance staff. The facilities
served commercial, residential, and self haul customers and included a disposal area,
buy back center, and permanent household hazardous waste facility. Additionally, Mr.
Donlevy oversaw the facility expansion of the recyclable processing equipment to
increase capacity up to 12,000 tons per month. Mr. Donlevy was responsible for financial
reporting and analysis to the corporate office. He also managed the buy back center
and submitted all reports to the DOC for CRV refunds.
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EDUCATION
Bachelor of Arts in Business Administration and Economics, Whittier College, Califomia
Resume - John C. Davis
John C. Davis has 25 years of municipal consulting services to over 50 Califomia public
agencies, following ten years of city management and county administration agency
experience. After receiving a Masters in Urban and Regional Planning, he began
working in city management and commlJnity development with Fontana, Victorville, and
the Riverside County Administrative Office. During that time he reorganized municipal
personnel systems, managed community development and redevelopment projects, and
secured and managed over $100 million of state and federal funds. As a consultant,
John Davis initiated six redevelopment projects, secured project financing, managed
specific plan preparation, carried out environmental review, and negotiated development
and participation agreements.
Since 1987, John Davis has worked on integrated waste management issues. His work
includes municipal recycling and solid waste franchise support, including bid and
negotiated procurement; management of diversion programs and facilities; market
development activities; landfill agreement negotiations, rate and financing analysis.
Since 1991, John Davis has administered the Mojave Desert and Mountain Recycling
Authority, a nine-member joint powers authority. The JPA carries out regional recycling
programs, including the High Desert Master Composters (winner of League of Califomia
Cities Regional Cooperation award), newsletters, website, model programs and
ordinances, program evaluation, policy analysis, legislative advocacy, ISO 14001
voluntary compliance, and multi-media social marketing efforts.
San Bernardino County contracted with John Davis to assist with franchise
implementation; to analyze self-haul activity at county-owned landfills and transfer
stations; and to recommend a program to divert self-haul material from landfills. The
Disposal Site Diversion Program received 2006 Board of Supervisors approval, and
diverts 25% of self-haul material from landfilling.
John Davis has been project manager for The Victor Valley Materials Recovery Facility
since its inception. The publicly-owned, privately served MRF was constructed in 1995
with bond proceeds; operates under a 3-way contract between the owners, manager,
and the Recycling Authority; receives material from eight cities and the unincorporated
county; and was upgraded in 2005, improving recovery rates and materials quality, while
lowering operating costs. A State market development grant funded part of the
expansion.
The City of Redlands contracted with John Davis to serve as Acting Solid Waste
Manager for nine months while it recruited and hired a full-time manager. Redlands
owns and operates a landfill, has its own municipal collection fleet, and offers a full-
range of waste diversion programs.
The City of San Bernardino used him as Interim Solid Waste Manager, and he continues
providing program assistance. John Davis is helping to reorganize and modernize
service delivery, focusing the 70-person staff on waste diversion, routing efficiencies,
and other improvements to accommodate future growth.
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F: SCOPE OF WORK
BACKGROUND
The City of San Bernardino has approximately 100 employees that provide residential,
commercial and roll-off collection services through the Integrated Waste Management
Division ("IWM Division") of the Public Services Department. Over the past several
years, the IWM Division has begun the process of addressing current operational
challenges, including: . .
. Purchasing 20 new vehicles in FY 2007-08, and the City is projecting that an
additional 17 vehicles will be acquired;
. Constructing a liquefied natural gas (LNG) and compressed natural gas (CNG) .
fueling station (to be completed before the end of the calendar year);
. Focusing resources on route efficiencies, accuracy of account information, aRa
establishing improved enforcement of IWM Division Codes related to waste
collection; and
. Revising the City's Refuse and Solid Waste IWM Division Code.
At the same time, the IWM Division is facing several longer term issues:
. Arranging for disposal of approximately 195,000 tons of solid waste currently
disposed at the Colton Landfill after December 31, 2012, when the San
,.- Bernardino County Waste Delivery Agreement (WDA) expires;
........ . Providing for all temporary bin services after the expiration of the agreements
with the two franchise waste haulers that compete with the City for temporary bin
. services;
. Addressing the need for customer rate increases or restructuring, given that
customer rates have not been increased for several years; and
. Addressing recommendations contained in the March of 2007 City-wide
Organizational Review:
o Preparing detailed business plan and rate study;
o Identifying enterprise costs and potential cost savings of contracting out;
and
o Preparing bid specifications for residential and commercial services, and
conducting a managed competition process.
To address these current and future challenges, the City issued an RFP for a consultant
to prepare a Business Plan that addresses five major areas: 1) rate structures, 2)
equipment needs, 3) staffing levels, 4) long range planning, and 5) pros-cons of
managed competition.
APPROACH
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The Business Plan may generate potential changes to how the IWM Division delivers
services to more successfully compete with comparable utilities, both publicly and
privately operated, in terms of efficiency, productivity, customer service and customer
rates, and net financial impact on the City.
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In preparing the Business Plan, our approach is to provide the IWM Division with:
. A high level assessment of the effectiveness of its current solid waste
management system; /"--"1
. Planning level cost estimates of any additional (
capital and operating and maintenance
expenses that may be necessary to bring the
current waste management system up to
industry standards;
. A practical long-term facility needs assessment
and any associated capital, operating and
maintenance cost projections; and
. Assessment of the adequacy of the City's
current rates to provide the revenues necessary I
to meet the current and projected needs of the
City's solid waste management operation.
It needs to be clearly noted that our ability to provide the IWM Division with the products
listed above requires substantial information and input from the City. To the extent that
such information and/or input are limited or not available our ability to provide our stated
deliverables will be correspondingly effected.
WORK TASKS
TASK 1
DOCUMENT REQUEST AND REVIEW AND KICK-OFF
MEETING
Task 1.1
Document Request and Review
Upon authorization by the IWM Division, R3 will provide the IWM Division with a
preliminary list of required documents to perform the performance review and financial
compliance assessment. This will allow the IWM Division to assemble the required
documents so the Project Team can immediately begin work.
A preliminary list of documents may include, but is not necessarily limited to, the
following items (for the last five years, unless otherwise noted):
. Current solid waste ordinances, resolutions, and plans;
. Current disposal, and processing agreements along with all amendments;
. Quarterly and annual solid waste reports prepared by the IWM Division;
. Revenue reports, budgets, and financial statements broken down by line-of-
business;
. FY 2007 Actual revenues and expenses by detailed line item and line-of-
business;
. FY 2008 budgeted revenues and expenses and any longer term budget
projections;
. Tonnage records by subscription class and program type, including disposal,
recycling and green waste;
. Tonnages delivered to facilities;
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Task 1.2
Customer subscription levels by customer type and service area;
Annual and monthly billing registers;
Route maps and current route lists and collection schedules;
Public education and outreach materials provided to the public;
Records of fees paid for disposal and processing;
Vehicle list and vehicle replacement schedule;
Vehicle maintenance records;
Organizational charts and reporting relationships;
Job descriptions;
Absenteeism and leave data;
Attrition information;
Customer complaint log;
Field personnel rosters;
Employee manuals and/or work rules;
Regulatory compliance documents (including copies of monthly inspections and
BIT inspections);
Agreements with labor unions;
Worker's compensation and on-the-job injury summaries; and
Historical operating and productivity data.
Project Kick-Off Meeting
We propose to facilitate a Project Kick-off Meeting with R3 and designated
representatives of the IWM Division. This meeting will provide an opportunity to review
the project objectives, R3's project approach, schedule and budget, and discuss data
availability. Prior to the Project Kick-off Meeting, R3 will prepare an agenda, proposed
report and presentation formats, additional data request list (in addition to data
requested as part of Task 1.1), for submittal to the IWM Division Staff. We will request
that the IWM Division review this documentation and work with R3 to prepare the final
meeting agenda and materials for the Project Kick-off Meeting.
Task 1.3
Initial Review of IWM Division Facilities and Interview Staff
Following the Kick-off Meeting, a preliminary staff interview schedule will be developed.
The schedule will be submitted to the IWM Division for review along with a "time and
materials utilization" questionnaire. A tour of the IWM Division's solid waste facilities,
observations of daily operations, and interviews with key solid waste staff will be
conducted. The tour and interview schedule will be coordinated with the IWM Division'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 IWM Division's daily operations.
The more detailed field observations and interviews will be done as part of Task 2 and
will cover maintenance, collection operations (residential curbside, multi-family,
commercial, roll-offs), customer service and billing, and management and administration.
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TASK 2
OPERATIONS ASSESSMENT
R3 will perfonn a high level review of the IWM Division's current operations and
management systems with the objective of providing the City with an unbiased
assessment of the effectiveness of current operations along with any major deficiencies
that are identified. In conducting that assessment we will use data from the August 2005
'Collection Operations Review" we conducted for the City, as applicable, as well as other
recent work John Davis has been assisting the City with.
Our Operations Assessment will focus on the extent to which the Division has in place
necessary policies, procedures and systems for both managing and improving
operations. Specifically we will assess:
. Current procedures for monitoring the safety, customer service, productivity,
diversion program effectiveness and cost of operations;
. The Division's current systems and procedures for account tracking and bill
collecting, and any related software needs;
. The type and level of management data that is tracked, how that data is used and
the extent to which the IWM Division is using available data to perform effective
diagnostic review of its operations to analyze and improve performance; and
. The extent to which management and supervisor roles and responsibilities are
clearly defined and procedures exist for assuring that staff is held accountable for
their responsibilities and performance (good or bad).
Deliverable: A concise and unbiased assessment of the IWM Division's
performance and opportunities for Improvement.
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TASK 3
EQUIPMENT NEEDS ASSESSMENT
Building on Task 2, we will perform an assessment of the IWM Division's equipment
needs specifically what if any additional equipment may be necessary to meet residential
and commercial collection needs. This assessment will include an evaluation of current
collection productivity, projected account growth, the adequacy of spare vehicles and the
IWM Divisions vehicle maintenance operations and the daily availability of the primary
route vehicles. We will also review current preventative maintenance procedures and
procedures for monitoring the cost and effectiveness of vehicle maintenance activities
including the extent to which systems are in place to effectively detennine if and when a
vehicle is to be replaced. We will also review the existing H.T.E. software system to
determine if it is sufficient to provide the IWM Division of timely and accurate customer
account billing reports, and financial analysis tools to proactively manage the on going
operations.
Deliverable: An assessment of current and future equipment needs and cost
estimated for any Identified equipment.
TASK 4
STAFFING LEVELS AND STAFF DEVELOPMENT
ASSESSMENT
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This Task is intended to provide the IWM Division with an assessment of its current
staffing levels and management system, and to identify potential changes or
improvements needed. This may include, but is not necessarily limited to. the following
items:
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. Review organizational structure and functions, including the ratio of customers to
management staff, supervisors, dispatchers, drivers, maintenance personnel,
customer service and billing representatives, etc.;
. Review data tracking and reporting procedures, including what data are
continually tracked and how those data are used to manage the collection
operations;
. Review employee feedback programs that provide a forum for employees to
make suggestions on system improvements;
. Review employee management policies and procedures, including employee
evaluation and promotion procedures, reward and recognition programs,
employee discipline policies, training programs, etc.; and
. Review employee training and retention policies and procedures.
Deliverable: An assessment of adequacy of the City's current staffing levels,
management systems, and recommendations and cost est/mates for
necessary changes.
TASK 5
Task 5.1
FINANCIAL ANALYSES
Cost of Service Analysis
Working with the IWM Division, R3 will review the financial results of operations for fiscal
year ending (FYE) 2007 to determine the extent to which revenues were sufficient to
meet capital and operating expenses. As part of this review we will also perform a high
level cost of service analysis provided data is readily available (e.g., tonnage, full time
equivalent employees, etc.) that will allow us to allocate costs among each of the IWM
Division's major lines of business (e.g., residential, commercial). The results of this
analysis will be a recommended relative adjustment to the rates to eliminate any "cross-
line of business" subsidies or shortfalls that may exist based on current rates. To the
extent that their may be ancillary services (e.g., street sweeping) or other factors
impacting either the FYE 2007 operating revenues or expenses we have assumed that
the City will provide direction as to how these factors are to be handled in developing the
cost of service analysis. .
Develop Long Range Budget Projections and Required Rate
Adjustments
The purpose of this task will be to prepare planning level projections of the IWM
Division's 5 to 10 year operating expenditures accounting for any additional needs that
have been identified as part of this engagement (e.g., additional staffing, equipment
and/or facility capital and operating expenses). The budget projections will be based on
the City's FY 2008 budget projections and any longer term projections that have been
developed. To the extent that such projections have been developed they will be used. If
longer range budget projections are not available we will develop projections based on
assumed annual account growth and cost escalation rates for the various major budget
line item categories (e.g., personnel, equipment, disposal). We will then make any
appropriate adjustments to these projections to account for any additional needs that
have been identified.
Task 5.2
FY 2008 revenue projections (or FYE 2007 actual revenues) will then be escalated as
appropriate (e.g., rate revenues will be escalated based on growth) to project revenues
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over the 5 to 10 year planning period based on current rates. We will then calculate the
required annual rate adjustments necessary to satisfy the annual revenue requirements
over the planning period, including any operating reserves that the City may wish to
maintain.
Deliverable: A cost of service analysis, projected annual revenue requirements,
and associated annual rate adjustments.
TASK 6 ASSESSMENT OF MANAGED COMPETITION
Managed competition may provide the City with an alternative to expanding its current
operations to accommodate growth, the needs for additional collection vehicles, drivers,
and maintenance operations, or for a source of new net revenue to the City. However
entering into some form of managed competition may have a negative impact on the
City's current personnel in terms of moral and stability. Accordingly, any form of
managed competition should be viewed initially as an alternative to any needed
investment in the City's municipal operations. Our analysis of managed competition-will
also focus on the net affect to the City if all or some of the City's current operations are
contracted out. In terms of fiscal balance, we will analyze if expected franchise fees will
meet or exceed current and future general fund transfers from municipal operations.
As indicated in our cover letter, in 2004 R3 conducted an assessment of contracting out
current City roll-off and temporary debris box operations and found that there is strong
interest from private companies, and the private companies are willing to provide
significant up-front cash payment to the City as well as providing on-going franchise fee
revenue. Example areas that the City may wish to consider for managed competition
include the following:
. Vehicle maintenance;
. Billing services;
. Residential collection (city-wide, restricted to certain areas, only one service line
such as green waste or bulky-waste collection); -
. Roll-off collection;
. Temporary debris box collection; and
. Commercial collection (city-wide, restricted to certain areas, only one service line
such as recycling or organic waste collection).
Deliverable: A concise comparison of the pros and cons of managed competition
for some or all of the City's municipal operations.
TASK 7
DRAFT AND FINAL BUSINESS PLAN
The results of Tasks 1 - 6 will be compiled and prepared as a Business Plan. The
Business Plan will document the assumptions, methodologies, budget projections, staff
needs, equipment needs, changes to organizational structure, assessment of managed
competition, and implementation recommendations. The Business Plan will compare
projected gross and net revenue generation from continuing municipal operations
(Task 5) to undertaking some form of managed competition (Task 6). Municipal
operations will take into account growth, projected capital and operational costs
associated with the Operational Assessment (Task 2), changes in business practices
due to the expiration of the franchise agreements with the two companies providing
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temporary services, expansion of IWM Services such as ownership of a MRF, more
aggressive marketing of IWM services, and changes in the billing system and software.
Tables, graphs, and charts will be used as appropriate, but the emphasis will be on
proViding a clear, concise and understandable Business Plan. An executive summary
will present the purpose and results of the Business Plan in no more than four (4) pages.
Draft - Five (5) copies of the Draft Business Plan will be provided for thelWM Division's
review and comment. The IWM Division will determine when and how this Draft Report
will be reviewed by the public and/or IWM Division Council and when draft materials are
presented to the public.
Final - The IWM Division will compile its comments into one (1) copy of the Draft
Business Plan reflecting all the IWM Division's comments. Then, once the IWM Division
has completed the review of the Draft Business Plan, those changes will be incorporated
into a Final Business Plan, and five (5) copies plus a camera-ready version of the Final.
Business Plan will be provided.
Deliverables:
. Rve (5) copIes of the Draft Report; and
. Five (5) copies of the Flnsl Report, Including one (1) camera ready copy.
G: SCHEDULE
R3 Consulting Group, Inc. proposes to complete Tasks 1-7 stated above over a three-
month period.
H: WILLINGNESS TO SIGN SERVICE AGREEMENT
R3 Consulting Group, Inc. is willing to sign the Service Agreement (RFQ - Exhibit A)
upon selection.
I: DISCLOSURES
R3 Consulting Group, Inc. has no indictments of litigation history related to the company,
partners or subsidiaries arising out of the performance of similar work or violation of
laws, or regulations.
Submitted Under Separate Cover
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J: Project Budget
R3 will complete the work tasks described in Section F,
"Scope of Work", for a total not-to-exceed cost of $59,700.
· The project cost includes all labor, travel and project
expenses, and includes all work and deliverables as
listed in Tasks 1 - 7.
. R3 will invoice the City of San Bemardino (City) on a
monthly basis for work tasks as a percent complete.
· In the event additional services are requested by the
City not included in Tasks 1 - 7, R3 will provide the
City with a budget amendment prior to performing the
additional services.
Table 1 below provides our Project Budget by task.
Project Budget
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"- 1 Document Request and Review and Kick-off Meeting $ 5,320 40
2 Operations Assessment $ 6,110 46
3 Equipment Needs Assessment $ 7,230 60
4 S1affing Levels and Staff Development Assessment $ 9,280 68
5 Financial Analyses $11,200 80
6 Assessment of Managed Competition $ 7,240 52
7 Draft and Final Business Plan $ 13.320 96
Total Hours
Total Cost
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Submitted Under Separate Cover
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Project Budget
Billing Rates and Charges
Table. 2 below provides our Project Teams' billing rates and
charges.
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Project Team Member ClasslflcaUon Hourly Rate
Richard Tagore- Erwin Principal $145.00
William Schoen Principal $145.00
Ric Hutchinson Principal $145.00
Susan Collins . Practice Director $145.00 .
Jeff Donlevy Senior Associate $110.00
John Davis Principal $120.00
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Payments
Unless otherwise agreed in writing,. fees will be billed
monthly at the first of each month for the preceding month
and will be payable within 30 days of the date of the invoice.
Escalation
Our hourly rates are valid through June 30, 2008.
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