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HomeMy WebLinkAbout17- Public Works CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION ORIGINAL From: Randy Kuettle, Acting Director Subject: Resolution of the Mayor and Common Council of the City of San Dept: Public Works Bernardino authorizing the execution of an Agreement and issuance of a Purchase Order Date: August 10, 2010 in the amount of $80,075 to R.W. Beck, Incorporated for a Sewer Collection Fee Update and an Integrated Waste Rate Study. Meeting Date: September 7, 2010 Synopsis of Previous Council Action: Recommended Motion: Adopt Resolution. Signature Contact person: Randy Kuettle, Phone: 5140 Acting Director Supporting data attached: Ward: All Staff Report, Resolution, Professional Services Agreements and Attachments FUNDING REQUIREMENTS: Amount: $80,075 Source: There will be no impact to the General Fund. Funds have been budgeted in the FY 10-11 Sewer Fund Budget, Account Number 132-400-5502- 0000-0094 (Professional Contractual Services) in the amount $32,575 and in the FY 10-11 Integrated Waste Fund Budget, Account Number 527-400-5502-0000-0001 (Professional Contractual Services) in the amount of$47,500. Finance: Council Notes: Agenda Item No. I 1 /1/J_A-7— e) A I A CITY OF SAN BERNARDINO —REQUEST FOR COUNCIL ACTION Staff Report Subject: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of an Agreement and issuance of a Purchase Order in the amount of $80,075 to R.W. Beck, Incorporated for a Sewer Collection Fee Update and an Integrated Waste Rate Study. Background: Sewer In 2008,the Public Services Department(now Public Works)completed a five-year strategic plan to project revenue requirements necessary to fund existing operations and capital improvements to its aging sewer collection system. The Public Works Department is responsible for the sewer collection system and the San Bernardino Municipal Water Department (SBMWD) is responsible for sewer treatment. Separate rate components exist for sewer treatment and sewer collection services. On November 17, 2008, the Mayor and Common Council adopted Resolution 2008-434, which adjusted the rates for both treatment and collection systems via a two-step adjustment of approximately 5% on January 1, 2009 and January 1, 2010. Staff indicated that an ongoing financial assessment of the sewer collection system was to be completed prior to January 2011, and that an update was to be provided. R. W. Beck, Inc. proposes to prepare a Sewer Collection Fee Update that will be developed concurrently with the updated sewer treatment charge under the Water Department's Sewer Rate Study to make sure the City is charging customers the accurate amount to cover all operating expenses. The study will also take into consideration the Nexus study that is being conducted and adjust sewer collection fees accordingly. The study is projected to be completed by December 2010. The cost of the Sewer Collection Fee Update will be $32,575. R. W. Beck, Inc. will be performing the following work tasks: 1) Project Initiation, 2) Revenue Requirements Analysis, 3) Cost of Service and Rate Design, 4) Draft Final Report, and 5) Meetings and Presentations (See details on Attachment"I"). Integrated Waste The City of San Bernardino (City) contracted with Matrix Consulting Group (Matrix) to conduct a management study of the Integrated Waste Management Division (IWMD). The study involved a comprehensive organization and management analysis of IWMD operations, service levels, management practices, and staffing levels. Matrix recommended that we conduct a cost-of-service study for solid waste collection services during Fiscal Year 2010/2011. R. W. Beck proposes to perform a cost-of-service and rate study (Integrated Waste Collection Rate Study) to update existing rates. The study is projected to be completed by December 2010. The cost of the Integrated Waste Collection Rate Study will be $47,500. 1 R. W. Beck, Inc. will be performing the following work tasks: 1) Project Initiation 2) Revenue Requirement Analysis 3) Cost-of-Service and Rate Design 4) Draft and Final Report 5) Meetings and Presentations (See details on Attachment'T'). R. W. Beck, Inc. has provided the Water Department with consulting services in the past and has proven to be proficient. Staff recommends that this purchase is exempt from the formal contract procedures of Section 3.04.010 of the Municipal Code, pursuant to Section 3.04.010. B.3 of said Code, "Purchases approved by the Mayor and Common Council " and that Council authorize the execution of an Agreement and Purchase Order in the amount of $80,075 to R.W. Beck, Incorporated in order to conduct a Sewer Collection Fee Update and an Integrated Waste Rate Study. Financial Impact: There will be no impact to the General Fund. Funds have been budgeted in the FY 10-11 Sewer Fund Budget, Account Number 132-400-5502-0000-0094 (Professional Contractual Services) in the amount $32,575 and in the FY 10-11 Integrated Waste Fund Budget, Account Number 527-400- 5502-0000-0001 (Professional Contractual Services)in the amount of$47,500. Account Number 132-400-5502-0000-0094 Budgeted Amount: $525,90 0 Balance as of July 12, 2010: $525,900 Balance after approval of this item: $493,325. Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred but not yet processed. Account Number 527-400-5502-0000-0001 Budgeted Amount: $444,600 Balance as of July 12, 2010: $444,600 Balance after approval of this item: $397,100. Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred but not yet processed Recommendation: Adopt Resolution. 2 CITY OF SAN BERNARDINO OFFICE OF THE PUBLIC WORKS DIRECTOR INTER-OFFICE MEMORANDUM TO: Charles McNeeley, City Manager FROM: Randy Kuettle, Acting Director of Public Works DATE: August 10, 2010 SUBJECT: City Manager's Approval of Process — Purchases made pursuant to Section 3.04.010(B)(3) and Section 3.04.075 of the City's Municipal Code (Purchases approved by the Mayor and Common Council and emergency purchases approved by the City Manager). DDL Number 82. COPIES: R.W. Beck, Incorporated was selected as a Sole Source for the following reasons: 1. R. W. Beck, Inc. has provided the San Bernardino Municipal Water Department with consulting services in the past and has proven to be proficient; and 2. R.W. Beck, Incorporated is a nationally recognized group of technically based business consultants serving public and private infrastructure organizations and financiers worldwide. A Request for Council Action entitled, "Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of an Agreement and issuance of a Purchase Order in the amount of$80,075 to R.W. Beck, Incorporated for a Sewer Collection Fee Update and an Integrated Waste Rate Study" has been submitted and placed on the September 7, 2010 agenda calendar for review and approval. Randy Kuettle Acting Director of Public Works Ap oved By: Charles McNeele City Manager 1 RESOLUTION NO. !. . - 2 RESOLUTION OF THE MAYOR AND COMMON COUN& OF S C OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT 3 AND ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $80,075 TO R.W. BECK, INCORPORATED FOR A SEWER COLLECTION FEE UPDATE AND AN 4 INTEGRATED WASTE RATE STUDY. 5 WHEREAS,R.W. Beck, Incorporated is a nationally recognized group of technically 6 based business consultants serving public and private infrastructure organizations and 7 financiers worldwide; and, 8 9 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 10 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized to 11 execute on behalf of said City an Agreement between the City of San Bernardino and R.W. 12 13 Beck, Incorporated, a copy of which is attached hereto, marked as Exhibit "A", and 14 incorporated herein by this reference as fully as though set forth at length. 15 SECTION 2. That this purchase is exempt from the formal contract procedures of 16 Section 3.04.010 of the Municipal Code, pursuant to Section 3.04.010. B.3 of said Code, 17 "Purchas es approved by the Mayor and Common Council." 18 SECTION 3. That pursuant to this determination the Director of Finance or her 19 20 designee is hereby authorized to issue a Purchase Order to R.W. Beck, Incorporated in the 21 amount of$80,075 for FY 10-11. 22 SECTION 4. The Purchase Order shall reference this Resolution Number and shall 23 read, "R.W. Beck, Incorporated, Inc. for a sewer collection fee update and an Integrated Waste 24 rate study. Agreement not to exceed $80,075' and shall incorporate the terms and conditions 25 of the agreement. 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 1 OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT 2 AND ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $80,075 TO R.W. BECK INCORPORATED FOR A SEWER COLLECTION FEE UPDATE AND AN 3 INTEGRATED WASTE RATE STUDY. 4 SECTION 5. The authorization to execute the above referenced Purchase Order and 5 6 Agreement is rescinded if it is not executed by both parties within sixty (60) days of the 7 passage of this resolution. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 /q 24 25 26 27 28 /// RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT 2 AND ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $80,075 TO R.W. BECK, INCORPORATED FOR A SEWER COLLECTION FEE UPDATE AND AN 3 INTEGRATED WASTE RATE STUDY. 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 5 and Common Council of the City of San Bernardino at a meeting thereof, held 6 on the day of 2010, by the following vote,to wit: 7 8 9 Council Members: AYES NAYS ABSTAIN ABSENT 10 MARQUEZ 11 DESJARDINS 12 BRINKER 13 SHORETT 14 KELLEY 15 16 JOHNSON -- 17 MCCAMMACK 18 19 20 Rachel G. Clark, City Clerk 21 The foregoing resolution is hereby approved this day of 2010. 22 23 Patrick J. Morris, Mayor 24 City of San Bernardino Appro d as to Form' 25 By 3 _ 26 es F. Penman, City Attorney 27 28 1 -- VENDOR SERVICE AGREEMENT -- - -- 2 This Vendor Service Agreement is entered into this 7a' day of September 2010, by and 3 between R. W. Beck, Incorporated ("VENDOR") and the City of San Bernardino ("CITY" or 4 "San Bernardino"). 5 WITNESSETH: 6 WHEREAS, the Mayor and Common Council has determined that it is advantageous 7 8 and in the best interest of the CITY to contract for a sewer collection fee update and an 9 Integrated Waste rate study; and 10 WHEREAS, this purchase be exempt from the formal contract procedures of Section 11 3.04.010 of the Municipal Code, pursuant to Section 3.04.010. B.3 of said Code, "Purchases 12 approved by the Mayor and Common Council;" and, 13 NOW,THEREFORE, the parties hereto agree as follows: 14 15 1. SCOPE OF SERVICES. 16 For the remuneration stipulated, San Bernardino hereby engages the services of 17 VENDOR to provide those products and services as set forth in Attachment "1 and 2" and 18 incorporated herein by this reference. 19 2. COMPENSATION AND EXPENSES. 20 a. For the services delineated above, the CITY, upon presentation of an invoice, shall 21 pay the VENDOR up to the amount of $32,575, for a sewer collection fee update 22 23 and $47,500 for an Integrated Waste rate study for a total not to exceed $80,075 per 24 estimate of fees set forth in Attachment"1 and 2." 25 b. No other expenditures made by VENDOR shall be reimbursed by CITY. 26 3. TERM; TERMINATION. 27 The term of this agreement shall be from September 7, 2010 through June 30, 2011. 'w 28 Exhibit"A" 1 �s I This Agreement may be terminated at any time by thirty (30) days' written notice by 2 either party. The terms of this Agreement shall remain in force unless amended by written 3 agreement of the parties executed on or before the date of expiration of current term of the 4 agreement. 5 4. INDEMNITY. 6 Vendor agrees to and shall indemnify and hold the City, its elected officials, employees, 7 8 agents or representatives, free and harmless from all claims, actions, damages and liabilities of 9 any kind and nature arising from bodily injury, including death, or property damage, based or 10 asserted upon any or alleged act or omission of Vendor, its employees, agents, or 11 subcontractors, relating to or in any way connected with the accomplishment of the work or 12 performance of service under this Agreement, unless the bodily injury or property damage was 13 actually caused by the sole negligence of the City, its elected officials, employees, agents or 14 representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its 15 16 own expense, including attorney's fees the City, its elected officials, employees, agents or 17 representatives from any and all legal actions based upon such actual or alleged acts or 18 omissions. Vendor hereby waives any and all rights to any types of express or implied 19 indemnity against the City, its elected officials, employees, agents or representatives, with 20 respect to third party claims against the Vendor relating to or in any way connected with the 21 accomplishment of the work or performance of services under this Agreement. 22 5. INSURANCE. 23 24 While not restricting or limiting the foregoing, during the term of this Agreement, 25 VENDOR shall maintain in effect policies of comprehensive public, general and automobile 26 liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory 27 worker's compensation coverage, and shall file copies of said policies with the CITY'S Risk �+ 28 Exhibit"A" 2 1 Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an r„ 2 additional named insured in each policy of insurance provided hereunder. The Certificate of 3 Insurance furnished to the CITY shall require the insurer to notify CITY of any change or 4 termination in the policy. Insurer shall give CITY 30 days notice prior to enactment and any 5 change or termination of policy. 6 6. NON-DISCRIMINATION. 7 8 In the performance of this Agreement and in the hiring and recruitment of employees, 9 VENDOR shall not engage in, nor permit its officers, employees or agents to engage in, 10 discrimination in employment of persons because of their race, religion, color, national origin, 11 ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or 12 sexual orientation, or any other status protected by law. 1 7. INDEPENDENT CONTRACTOR. I 14 VENDOR shall perform work tasks provided by this Agreement, but for all intents and 15 16 purposes VENDOR shall be an independent contractor and not an agent or employee of the III 17 CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of 18 Income Tax, Social Security, State Disability Insurance Compensation, Unemployment 19 Compensation, and other payroll deductions for VENDOR and its officers, agents, and 20 employees, and all business licenses, if any are required, in connection with the services to be 21 j performed hereunder. 22 23 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS. 24 VENDOR warrants that it possesses or shall obtain, and maintain a business registration 25 certificate pursuant to Chapter 5 of the Municipal Code, and any other licenses, permits, 26 qualifications, insurance and approval of whatever nature that are legally required of VENDOR (� 27 to practice its business or profession. �•/ 28 Exhibit"A" 3 1 NOTICES. 2 Any notices to be given pursuant to this Agreement shall be deposited with the United 3 States Postal Service, postage prepaid and addressed as follows: 4 TO THE CITY: Public Works Director 5 300 North"D" Street San Bernardino, CA 92418 6 Telephone: (909) 384-5140 7 TO THE VENDOR: R.W. Beck, Incorporated 8 1001 Fourth Avenue, Suite 2500 Seattle, WA 98154 9 Telephone: 1-(800) 285-BECK(2325) Contact: Art Griffith 10 9. ATTORNEYS' FEES. 11 12 In the event that litigation is brought by any party in connection with this Agreement, 13 the prevailing party shall be entitled to recover from the opposing party all costs and expenses, 14 including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of 15 its rights or remedies hereunder or the enforcement of any of the terms, conditions or 16 provisions hereof. The costs, salary and expenses of the City Attorney and members of his 17 office in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' 18 19 fees" for the purposes of this paragraph. 20 10. ASSIGNMENT. 21 VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or 22 encumber all or any part of the VENDOR's interest in this Agreement without CITY's prior 23 written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void 24 and shall constitute a breach of this Agreement and cause for the termination of this 25 Agreement. Regardless of CITY's consent,no subletting or assignment shall release VENDOR 26 27 28 Exhibit"A" 4 I of VENDOR's obligation to perform all other obligations to be performed by VENDOR © 2 hereunder for the term of this Agreement. 3 11. VENUE. 4 The parties hereto agree that all actions or proceedings arising in connection with this 5 Agreement shall be tried and litigated either in the State courts located in the County of San 6 Bernardino, State of California or the U.S. District Court for the Central District of California, 7 8 Riverside Division. The aforementioned choice of venue is intended by the parties to be 9 mandatory and not permissive in nature. 10 12. GOVERNING LAW. II This Agreement shall be governed by the laws of the State of California. 12 13. SUCCESSORS AND ASSIGNS. 13 This Agreement shall be binding on and inure to the benefit of the parties to this Agreement © 14 and their respective heirs, representatives, successors, and assigns. 15 16 14. HEADINGS. 17 The subject headings of the sections of this Agreement are included for the purposes of 18 convenience only and shall not affect the construction or the interpretation of any of its 19 provisions. 20 15. SEVERABILITY. 21 If any provision of this Agreement is determined by a court of competent jurisdiction to 22 23 be invalid or unenforceable for any reason, such determination shall not affect the validity or 24 enforceability of the remaining terms and provisions hereof or of the offending provision in any 25 other circumstance, and the remaining provisions of this Agreement shall remain in full force 26 and effect. 27 28 Exhibit"A" 5 1 16. ENTIRE AGREEMENT; MODIFICATION. 2 This Agreement constitutes the entire agreement and the understanding between the 3 parties, and supercedes any prior agreements and understandings relating to the subject manner 4 of this Agreement. This Agreement may be modified or amended only by a written instrument 5 executed by all parties to this Agreement. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit"A" 6 1 VENDOR SERVICE AGREEMENT R.W. BECK, INCORPORATED 2 3 IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and 4 date set forth below. 5 6 Dated: 2010 R.W. Beck, Incorporated 7 By: 8 9 Dated 2010 CITY OF SAN BERNARDINO 10 By: 11 Charles E. McNeely, City Manager 12 Approved as to Form: 13 By: 14 Jam . Penman, City Attorney 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Attachment"1" City of San Bernardino Public Services Department - Sewer Collection Fee Update Scope of Work, Project Schedule and Fee Estimate Introduction The City of San Bernardino provides sewer collection and treatment services to its customers through two separate City departments. The San Bernardino Municipal Water Department provides sewer treatment services, and the City of San Bernardino Public Services Department (Department) provides sewer collection services. Separate rate components exist for sewer treatment and sewer collection services. R. W. Beck proposes to prepare a Sewer Collection Fee Update that will be developed concurrently with the updated sewer treatment charge under the Water Department's Sewer Rate Study. Proposed Scope of Work l Task 1 Project Initiation This task will be performed in conjunction with the Integrated Waste Collection Rate Study to initiate the project by facilitating a kick-off meeting held with representatives of the Department in San Bernardino. In advance of the kick-off meeting, R. W. Beck will provide a preliminary data request for each study. A kick-off meeting will be held to discuss the scope, schedule, data request, key issues to be addressed, and the factors that will make these studies a success. This meeting will also include identifying the process for presenting information to the San Bernardino City Council. A revised data request will be submitted within seven days of the kick-off meeting. This meeting will be attended by one member of the R. W. Beck Project Team (Project Team). Task 1 Deliverables: • Facilitation of joint kick-off meeting and project agenda. • Initial and supplemental data requests. Task 2 Revenue Requirement Analysis R.W. Beck will develop revenue requirement projections for the Department to determine the overall level of revenue needed to provide sewer collection services. This will include projections over a five-year financial planning period covering Fiscal Years (FY) 2011-2015. An SAIC Co.Dany The analysis will include projecting the number of customers, water consumption used in sewer billing revenues under existing rate schedules, operation and maintenance expenses, capital expenses, debt service requirements, non-rate revenues, and any other cash obligations. In response to R. W. Beck's data request, the Department will provide available capital improvement plans and financing assumptions and growth projections for FYs 2011-2015; budget documents for FY 2011; and historical revenue, expenditure and customer data for FYs 2008-2010. R. W. Beck and the Department will work collaboratively to assess the impact of recent decreases in metered water consumption on sewer collection rate revenues. R. W. Beck will prepare up to three revenue requirement scenarios corresponding to variations in with inputs, such as: operating and maintenance spending; customer growth; capital project spending; and/or financing assumptions (if applicable). Multiple iterations of a single scenario are considered separate scenarios. Task 2 Deliverables: • Up to three revenue requirements scenarios. • Deliverables under this task are to be incorporated into Task 4 deliverables. Task 3 Cost of Service and Rate Design A cost-of-service analysis will be developed based on revenue requirements for FY 2011. This analysis will include the development of sewer collection unit costs based on flow ($/hcf) and customers($/customer)per month. These unit costs will be used to determine the cost-of-service based rate structure using the Department's existing customer classes, water usage assumptions and/or return factors for each customer class. A comparison of revenues under existing rates by customer class with the allocated costs of service by customer class will determine the adequacy of existing rates for each customer class and will identify adjustments necessary for each class to recover its respective cost-of-service. If adjustments are required to make revenue recovery more equitable, the implementation of a phase-in plan to reach cost-of-service over a multiple year period is typically proposed to help reduce significant rate impacts for specific customers. Any deviations from the cost-of-service analysis to be incorporated into the rate design will be discussed with Department staff. A schedule of proposed sewer collection rates over a five-year period will be developed for up to two iterations of one of the revenue requirement alternatives. This task excludes any evaluation or modification of the Department's existing customer classes. Task 3 Deliverables: • Cost of service results for two iterations of one revenue requirement scenario. • Rate design(up to two iterations) for one of the revenue requirement scenarios. • Deliverables under this task are to be incorporated into Task 4 deliverables. V File: 013023 /00-00000-60165: Dft 07/07/10 Page 2 oN Task 4 Draft and Final Report A draft report will be prepared summarizing the assumptions, methodology and results of the analysis for review by the Department staff. A revised draft report will be prepared after incorporation of comments from the Department, as appropriate. The final report will be prepared after adoption of any revised sewer rates by the City Council. Task 4 Deliverables: • Draft, Revised Draft, and Final Reports. (Note: Reports will be provided to Department staff in electronic form.) • A spreadsheet-based model in electronic form will be provided. (Note: Model training and a user guide are not included in this scope of work.) Task 5 Meetings and Presentations In addition to the kick-off meeting included in Task 1, R. W. Beck will attend four additional on- site meetings as follows: • One meeting with the Department staff to present draft results (two members of the Project Team will attend). • One meeting with the Ways and Means Committee (one member of the Project Team will attend). • One public hearing meeting(one member of the Project Team will attend). • One meeting with the City Council (one member of the Project Team will attend). Task 5 Deliverables: • Draft and final presentation materials. • Attendance at four meetings, in addition to the joint kick-off meeting included in Task 1. Proposed Schedule R. W. Beck anticipates this project will take four to eight months to complete. Key factors in determining the schedule include the number of iterations of revenue requirement analyses, data availability and effort required to develop any needed surrogate data, timing of the various meetings, ability to hold meetings for this project, the Integrated Waste Collection Rate Study and a Sewer Treatment Rate Study being simultaneously prepared by the Municipal Water Department at the same time, and alignment of schedule with the Department's and City's budgeting and rate adjustment timelines. File: 013023 / 00-0OOOO40165: Draft 07/07/10 Page 3 of 4 ® Fee Estimate The fee estimate for this project is as follows: Task 1 —Project Initiation $ 2,640 Task 2—Revenue Requirement Analysis 13,210 Task 3 —Cost-of-Service and Rate Design 5,880 Task 4—Draft and Final Report 4,800 Task 5 —Meetings and Presentations 6,045 TOTAL FEES: $ 32,575 R. W. Beck will perform the services described in this scope based on the actual hours of services furnished multiplied by applicable R. W. Beck staff billing rates as of the date of R. W. Beck's monthly invoice plus all out-of-pocket expenses directly related to the services furnished under this Agreement. The fee estimate includes all out-of-pocket expenses projected to be incurred during the conduct of this project including, but not limited to, all applicable federal, state, and local taxes and all travel-related expenses. "Travel-related expenses" include any and all airfare, car rental, lodging, meals, and other travel-related costs and expenses that R. W. Beck incurs in the performance of this contract. Meal expenses will be based on a per-diem expense as per R. W. Beck company policy. This fee estimate is also based on the ability to combine Task 5 presentations for this project, the Integrated Waste Collection Rate Study and a Sewer Treatment Rate Study being simultaneously prepared by the Municipal Water Department in a single trip. Any significant scheduling delays may result in an increase in the fees for the scope of work. However, no fee increases shall be valid or binding upon the Department unless mutually agreed to in writing by R. W. Beck and the Department. The scope of work does not include attendance at any presentations or public hearings other than those identified in Task 5. This scope of work also does not include assistance with preparing public notices required under Proposition 218 or meeting with any additional internal or external customers other than described herein. Additional Services R. W. Beck is available to provide additional services if desired by the Department. Specific scope and fee estimates would be negotiated based on the services requested by the Department. a File: 013023 /00.00000-60165: Daft 07/07/10 Page 4 of 4 Attachment"2" City of San Bernardino Public Services Department - Integrated Waste Collection Rate Study Scope of Work, Project Schedule and Fee Estimate Introduction The City of San Bernardino, through its Integrated Waste Management Division of the Public Services Department (Department), provides residential and commercial collection services for refuse, recyclables, and green waste. R. W. Beck proposes to perform a cost-of-service and rate study (Integrated Waste Collection Rate Study) to update existing rates as described in the following tasks. Proposed Scope of Work Task 1 Project Initiation This task will be performed to initiate the project by facilitating a kick-off meeting with representatives of the Department in San Bernardino that will be scheduled to coincide with the meetings under the Sewer Collection Fee Update. In advance of the kick-off meeting, R. W. Beck will provide a preliminary data request. A kick-off meeting will be held to discuss the scope, schedule, data request, key issues to be addressed, and the factors that will make this study a success. This meeting will also include identifying the process for presenting information to the San Bernardino City Council. A revised data request will be submitted within seven days of the kick-off meeting. This meeting will be attended by one member of the R. W. Beck Project Team(Project Team). Task 1 Deliverables: • Facilitation of joint kick-off meeting and project agenda. • Initial and supplemental data requests. Task 2 Revenue Requirement Analysis R. W. Beck will develop revenue requirement projections for the Department to determine the overall level of revenue needed to provide integrated waste collection services. This will include projections over a five-year financial panning period-covering Fiscal Years �FYj2011-2015. The analysis will include projecting the number of accounts, tonnage projections by collection service type, operation and maintenance expenses, any capital expenses or debt service requirements, non-rate revenues, and any other cash obligations. An SAIC Company In response to R. W. Beck's data request, the Department will provide any capital improvement © plans and financing assumptions (if applicable), and growth projections for FYs 2011-2015; budget documents for FY 2011; and historical revenue, expenditure and customer data for FY 2008-2010. Department staff to also provide tipping fee expense projections for FYs 2011- 2015. R. W. Beck and the Department will work collaboratively to assess the impact of incomplete integrated waste collection revenues. R. W. Beck will prepare up to three revenue requirement scenarios corresponding to variations in various inputs, such as: operating and maintenance spending; customer growth; capital project spending; and/or financing assumptions (if applicable). Multiple iterations of a single scenario are considered separate scenarios. Task 2 Deliverables: • Up to three revenue requirements scenarios. • Deliverables under this task are to be incorporated into Task 4 (Draft and Final Report Task) deliverables. Task 3 Cost-of-Service and Rate Design A cost-of-service analysis will be developed based on revenue requirements for FY 2011. This analysis will include the development of integrated waste collection unit costs. These unit costs will be used to determine the cost-of-service based rate structure using the existing customer classes, bin types, and tonnage assumptions for each customer class. A comparison of revenues O under existing rates by customer class with the allocated costs of service by customer class will determine the adequacy of existing rates for each customer class and will identify adjustments necessary for each class to recover its respective cost-of-service. If adjustments are required to make revenue recovery more equitable, the implementation of a phase-in plan to reach cost-of- service over a multiple year period is typically proposed to help reduce significant rate impacts for specific customers. Any deviations from the cost-of-service analysis to be incorporated into the rate design will be discussed with the Department staff. A schedule of proposed rates over a five-year period will be developed for up to two iterations of one of the revenue requirement scenarios developed in Task 2. This task excludes any evaluation or modification of the existing customer classes. Task 3 Deliverables: • Cost of service results for two iterations of one revenue requirement scenario. • Rate design(up to two iterations)for one of the revenue requirement scenarios. • Deliverables under this task are to be incorporated into Task 4 (Draft and Final Report Task)deliverables. File: 013023 /00-00000-60165: DaR 07/07/10 Page 2 oN Task 4 Draft and Final Report A draft report will be prepared summarizing the assumptions, methodology and results of the analysis for review by the Department staff. A revised draft report will be prepared after incorporation of comments from the Department, as appropriate. The final report will be prepared after adoption of any revised integrated waste collection rates by the City Council. Task 4 Deliverables: • Draft, Revised Draft, and Final Reports. (Note: Reports will be provided to Department staff in electronic form.) • A spreadsheet-based model in electronic form will be provided. (Note: Model training and a user guide are not included in this scope of work.) Task 5 Meetings and Presentations In addition to the kick-off meeting included in Task 1, R. W. Beck will attend four additional on- site meetings as follows: • One meeting with the Department staff to present draft results (two members of the Project Team will attend). • One meeting with the Ways and Means Committee (one member of the Project Team will attend). L ■ One public hearing meeting(one member of the Project Team will attend). • One meeting with the City Council (one member of the Project Team will attend). Task 5 Deliverables: • Draft and final presentation materials. • Attendance at four meetings, in addition to the joint kick-off meeting included in Task 1. Proposed Schedule R. W. Beck anticipates this project will take four to eight months to complete. Key factors in determining the schedule include the number of iterations of revenue requirement analyses, data availability and effort required to develop any needed surrogate data, timing of the various meetings, ability to hold meetings for this project, the Sewer Collection Fee Update and a Sewer Treatment Rate Study being simultaneously prepared by the Municipal Water Department at the same time, and alignment of schedule with the budgeting and rate adjustment timelines for the Public Service Department_and the City.__ File: 013023 /00-00000-60165: Draft 07107/10 Page 3 of 4 Fee Estimate The fee estimate for this project is as follows: Task 1 -Project Initiation $ 2,640 Task 2-Revenue Requirement Analysis 10,630 Task 3 -Cost-of-Service and Rate Design 18,580 Task 4-Draft and Final Report 9,180 Task 5 -Meetings and Presentations 6,470 TOTAL FEES: $ 47,500 R. W. Beck will perform the services described in this scope based on the actual hours of services furnished multiplied by applicable R. W. Beck staff billing rates as of the date of R. W. Beck's monthly invoice plus all out-of-pocket expenses directly related to the services furnished under this Agreement. The fee estimate includes all out-of-pocket expenses projected to be incurred during the conduct of this project including, but not limited to, all applicable federal, state, and local taxes and all travel-related expenses. "Travel-related expenses" include any and all airfare, car rental, lodging, meals, and other travel-related costs and expenses that R. W. Beck incurs in the (� performance of this contract. Meal expenses will be based on a per-diem expense as per �r R. W. Beck company policy. This fee estimate is also based on the ability to combine Task 5 presentations for this project, the Sewer Collection Fee Update and a Sewer Treatment Rate Study being simultaneously prepared by the Municipal Water Department in a single trip. Any significant scheduling delays may result in an increase in the fees for the scope of work. However,no fee increases shall be valid or binding upon the Department unless mutually agreed to in writing by R. W. Beck and the Department. The scope of work does not include attendance at any presentations or public hearings other than those identified in Task 5. This scope of work also does not include assistance with preparing public notices required under Proposition 218 or meeting with any additional internal or external customers other than described herein. Additional Services R W—Beck-is_available to provide additional services if desired by the Department-_Spesific scope and fee estimates would be negotiated based on the services requested by the Department. File: 013023 /00-00000-60165: D ft 07107/10 Page 4 0N