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Resolution No. 8027.t Y 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 o[:l 19 20 21 22 23 24 25 26 27 W:A RESOLUTION NO. 8027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND SKS PROFESSIONAL SERVICES, INC., DBA MSW CONSULTANTS, FOR SERVICES RELATING TO AB 939 COMPLIANCE AND FRANCHISE FEES WHEREAS, the City of Vernon is required by the Integrated Waste Management Act and its amendments (AB 939) to divert the percentage of refuse going to landfills from Vernon generators by fifty percent (50%), to implement certain waste diversion programs described in its Source Reduction and Recycling Element and to submit an Annual Report to the California Integrated Waste Management Board; and WHEREAS, SKS Professional Services, Inc., dba MSW Consultants, represents that it is qualified to perform such services and has specialized knowledge and experience in advising public agencies on solid waste issues; and WHEREAS, pursuant to Resolution No. 7627, adopted on October 3, 2000, the City retained the services of MSW Consultants ("MSW") to assist the City in complying with the requirements of AB 939; and WHEREAS, the principals of MSW Consultants have provided services to the City in the past and thus should be able to provide the services now required by the City in'a more efficient and effective manner; and WHEREAS, the Finance Committee on July 23, 2002, approved the recommendation of Bruce V. Malkenhorst, Director of Finance, dated July 18, 2002, that an agreement with MSW Consultants be approved and executed for services relating to AB 939 compliance and franchise fees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 for fiscal years 2002-2002 and 2003-2004; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into a Consulting Services Agreement with SKS Professional Services, Inc., dba MSW Consultants, to enhance services provided to the Vernon community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true anc correct. SECTION 2: The City Council of the City of Vernon hereby approves the Consulting Services Agreement, a copy of which is attached hereto as Exhibit "A" and made a part hereof. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and the City Clerk to execute said Agreement for, and on behalf of, the City of Vernon. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to transmit one fully executed Agreement to: SKS Professional Services, Inc., dba MSW Consultants Attn: David L. Davis 27393 Ynez Road, Suite 160 Temecula, CA 92591 - 2 - 1P I t < 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 24th day of July, 2002. ATTES� BRUCE V. MALKENHORST, City Clerk IS C. MALB G, Ma or - 3 - r e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8027, was duly adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Wednesday, July 24, 2002, and thereafter was duly signed by the Mayor of the City of Vernon. v BRUCE V. MALKENHORST, City Clerk (SEAL) - 4 - SUPPORTING DOCUMENTS EXHIBIT 1 CONSULTING SERVICES AGREEMENT 2 3 THIS AGREEMENT is made, entered into and executed in 4 duplicate originals, either copy of which may be considered and used 5 as the original hereof for all purposes, as of this day of July, 6 2002, in the City of Vernon, County of Los Angeles, California 7 8 BY AND BETWEEN THE CITY OF VERNON, a Municipal Corporation (hereinafter 9 referred to as the -"City") 4305 Santa Fe Avenue 10 Vernon, CA 90058 11 AND SKS PROFESSIONAL SERVICES, INC., dba MSW CONSULTANTS, 12 (hereinafter referred to as the "Consultant") 13 27393 Ynez Road, Suite 160 Temecula, CA 92591 14 15 WITNESSETH 16 WHEREAS, the City is required by the Integrated Waste 17 Management Act and its amendments (AB 939) to divert the percentage of 18 refuse going to landfills from Vernon generators by fifty percent 19 (500), to implement certain waste diversion programs described in its 20 Source Reduction and Recycling Element and to submit an Annual Report 21 to the California Integrated Waste Management Board ("CIWMB"); and 22 WHEREAS, the City desires to retain the services of a 23 consultant to provide assistance to the City in complying with AB 939 24 and to provide franchise fee review services; and 25 WHEREAS, the Consultant submitted a proposal to City dated 26 July 6, 2002 (the "Proposal") which includes a description of proposed 27 services and a cost proposal; and 28 WHEREAS, Consultant represents that it is qualified to 1 2 3 4 51 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 perform such services under this Consulting Services Agreement (hereinafter "Agreement"); and WHEREAS, Consultant is willing to render such professional services as hereinafter defined. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET FORTH HEREIN: I. SCOPE OF SERVICES. The Consultant shall perform the services outlined in the Proposal, which is attached hereto as Exhibit "A" and incorporated herein by reference. -The scope of services under this Agreement included Task 1 - AB 939 Compliance and Task 2 - Review Franchise Fee Payments and Reported Tons. Within these two general tasks, the following subtasks are to be performed by Consultant: compile documentation for biennial review, prepare the City's annual report to the CIWMB, conduct business waste assessments, provide WRAP award assistance for businesses, develop construction and demolition recycling ordinance, develop buy recycled policy, conduct limited pilot regional diversion facility residual study, summarize all fee payments and meet with City quarterly, perform on -site reviews of 30 franchised haulers each fiscal year, and compare tonnage and resolve discrepancies. It is understood and agreed that in the event of a conflict between the Proposal and this Agreement, the terms of this Agreement shall prevail. II. USE OF SUBCONTRACTORS It is understood and agreed that Consultant will subcontract a portion of the work to Eugene Tseng & Associates and Chan Accountancy Corporation, but that Consultant is solely responsible for the performance of this Agreement, including performance of any tasks -2- by said subcontractors. The Consultant may not engage any other subcontractors to complete the work described in the Scope of Services with the approval of the City. III. TIME OF PERFORMANCE. Consultant's services herewith shall commence upon signing of the Agreement and shall be completed by June 30, 2004, unless terminated or extended. IV. COMPENSATION. 1. Fee for Services. The City shall compensate the Consultant pursuant to the rates and costs as set forth in the Proposal for the services performed, in a total sum not to exceed $103,000.00 in each of the fiscal years 2002-2003 and 2003-2004. 2. Expenses. Expenses may only be billed if they have been approved in writing, in advance, by the City Administrator. V. METHOD OF PAYMENT. Within thirty (30) days after the last day of any month in which services have been performed or costs incurred hereunder, the Consultant shall submit an invoice to the City stating the amount due the Consultant. Invoices shall contain an itemization of services rendered, directly related job expenses and subcontract charges incurred by the Consultant and for which compensation is due. Consultant shall be responsible for paying any subcontractors used in the performance of this Agreement. Subcontractors shall not bill the City directly. Payment of the invoice shall be made after acceptance and approval by the City within thirty (30) days of receipt. The City's approval of the invoice shall not be unreasonably withheld. -3- I VI. CHANGES AND EXTRA SERVICES. 2 The City reserves the right to request changes in the 3 services to be performed by the Consultant. All such changes shall be 4 incorporated in written change orders executed by the City and the 5 Consultant which shall specify the changes ordered and the adjustment 6 of compensation and completion time required thereof. 7 Any services added to the scope of this Agreement by a 8 change order shall be executed under all applicable conditions of this 9 Agreement. No claim for additional compensation or extension of time 10 shall be recognized unless contained in a duly executed change order. 11 VII. PRODUCTS OF CONSULTING. 12 All documents, data, studies, surveys, drawings, maps, 13 models, photographs and reports prepared by Consultant under this 14 Agreement, with the exception of confidential information provided by 15 businesses located in the City, shall be considered the property of 16 City. Said documents and materials shall be delivered to City by 17 Consultant as they are generated; however, Consultant may take and 18 retain copies of said documents and materials as desired. 19 VIII. CONFIDENTIAL INFORMATION. 20 1. Access to Confidential Information. The City may 21 provide Consultant with, or allow Consultant access to, certain 22 information not available to the public concerning the City, or 23 businesses located in the City. The information may include company 24 information, taxes, sales, value of assets, or other such information. 25 All such information shall be known as "Confidential Information." 26 2. No Disclosure. Except as expressly permitted, 27 Consultant shall not disclose, permit the disclosure of, release, 28 disseminate, or transfer, whether orally or by any other means, any -4- I part of such Confidential Information to any other person or entity, 2 whether corporate, governmental, or individual, without the express 3 prior written consent of an authorized representative of the City. 4 Consultant shall return any written Confidential Information, and all 5 copies made of such items, to the City upon the City's written 6 request, but in any event not later than the date that the Consultant 7 has performed all services to be performed pursuant to this Agreement. 8 Consultant hereby agrees that such Confidential Information and any 9 documents provided may be used by Consultant only as authorized by the 10 City. Consultant shall take reasonable measures to avoid any 11 disclosure of any such Confidential Information to any unauthorized 12 person. 13 3. Court Ordered Disclosure. Consultant shall 14 immediately notify the City of any court order or subpoena requiring 15 disclosure of Confidential Information, and shall cooperate with legal 16 counsel in the appeal or challenge of any such order or subpoena. 17 Recipient may only disclose Confidential Information required to be 18 disclosed pursuant to court order or subpoena after legal counsel has 19 exhausted any lawful and timely appeal or challenge. 20 4. Remedies. In addition to any other remedies that 21 it may have at law or in equity, the City shall be entitled to a 22 temporary and permanent injunction by a court of competent 23 jurisdiction against any breach or threatened breach of the 24 Confidential Information provisions of this Agreement. Consultant 25 acknowledges that in case of such breach or threatened breach of said 26 provisions, the City would have no adequate remedy at law. 27 IX. INDEMNITY AND INSURANCE. 28 1. Indemnification. The Consultant shall indemnify, -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 defend, protect and hold the City and its officers, agents and employees, free and harmless from and against any and all claims, demands, losses, damages, liabilities, fines, charges, penalties, orders or judgments, and all costs and expenses incurred in connection therewith, including reasonable attorney's fees and costs of defense arising out of the services performed under this Agreement, except to the extent arising from or caused by the sole active negligence or willful misconduct of the City, its officers, agents or employees. 2. Insurance. Prior to commencing work hereunder, the Consultant shall provide the City with proof of insurance providing and maintaining the coverages and endorsements set forth in the Insurance Schedule attached hereto as Exhibit "B" and made a part hereof by reference. Said proof of insurance shall also provide that said policy or policies shall not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. Consultant shall not permit a subcontractor Vendor to perform work on City premises unless and until a certificate of insurance is obtained showing that such subcontractor or vendor has worker's compensation coverage. If consultant employs subcontractors as part of the services rendered, consultant's protective coverage is required. Consultant may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. X. GENERAL PROVISIONS. 1. Independent Contractor. At all times during the term of this Agreement, the Consultant shall be an independent contractor and shall not be an employee of the City. The City shall a Me I have the right to control the Consultant only insofar as the results 2 of the Consultant's services rendered pursuant to this Agreement; 3 however, the City shall not have the right to control the means by 4 which the Consultant accomplishes services rendered pursuant to the 5 Agreement except to the extent that such services involve the use of 6 City property or Confidential Information. 7 2. Consultant Not Agent. Except as the City may 8 specify in writing, the Consultant shall have no authority, express or 9 implied, to act on behalf of the City in any capacity whatsoever as an 10 agent. The Consultant shall have no authority, expressed or implied, 11 pursuant to this Agreement to bind the City to any obligation 12 whatsoever. 13 3. Assignment Prohibited. Consultant may not assign 14 any right or obligation of this Agreement except with the express 15 written consent of the City. Any other attempted or purported 16 assignment of any right or obligation pursuant to this Agreement shall 17 be void and of no effect. 18 4. Termination. This Agreement may be terminated by 19 the City on thirty (30) days written notice to the Consultant. The 20 effective date of cancellation shall be after the 30th day after said 21 written notice. The Consultant shall be entitled to the compensation 22 earned by it prior to the date of the termination notice, computed pro 23 rata up to and including that date, plus compensation for work 24 performed during the thirty -day notice period and authorized in the 25 termination notice. 26 5. Notices. Any and all notices, demands, invoices, 27 and written communications between the parties shall be addressed to 28 the parties as follows: -7- 1 2 3 4 5 6 71 8 9 10 11 12 13 14 15 16 17 18i 19 20 21 22 23 24 25 26 27 28 CITY: THE CITY OF VERNON ATTN: Bruce V. Malkenhorst City Administrator 4305 Santa Fe Avenue Vernon, CA 90058-0805 CONSULTANT: SKS Professional Services, Inc. ATTN: David L. Davis 27393 Ynez Road, Suite 160 Temecula, CA 92591 Any such notices, demands, invoices and written communications shall be (i) hand delivered, (ii) sent by telecopy and mail, or (iii) sent by mail. Mail shall be conclusively deemed to have been received by the addressee five (5) days after the deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. XI. ENTIRE AGREEMENT. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representations have been made by any party which are not embodied herein and that no other agreement, statement or promise not contained in this Agreement shall be valid and binding. Any modification of this Agreement will be effective only if it is in writing signed by the parties. XII. BENEFIT OF AGREEMENT. This Agreement shall bind and benefit the parties hereto and their heirs, successors, and permitted assigns. XIII. GOVERNING LAW. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California. W:10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19' 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the City and the Consultant have executed this Agreement by and through their authorized officers as of the date first hereinabove set forth. ATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: EDUARDO OLIVO, City Attorney CITY OF VERNON LEONIS C. MALBURG, Mayor SKS Profe ional ervices, Inc. By: r Title: �re'�Jwr-g�-- B y : �G.G Title:�i2ctR/ EXHIBIT A : -1 MSW Consultants A Team of Independent Solid Waste Professionals 27393 Ynez Road, Suite 160 Temecula, California 92591 909/694-4001 fax 909/694-9001 e-mail: MSWconsultants@aol.com July 6, 2002 Mr. Lew Pozzebon Director of Environmental Health City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Proposal to Provide AB 939 Compliance and Franchise Fee Review Services Dear Mr. Pozzebon: As you have requested, SKS Professional Services, Inc., doing business as MSW Consultants, is submitting this proposal to continue providing solid waste consulting services to the City of Vernon. This proposal describes the background, scope of work, limitations, project fees and other terms and conditions under which we will provide AB 939 compliance and franchise fee review services to the City for the fiscal years ending r� June 30, 2003 and 2004. q BACKGROUND As you know, MSW Consultants and its subcontractor, E. Tseng & Associates, have been providing solid waste consulting services for the City. For the two fiscal years ending June 30, 2002, MSW Consultants will have reviewed the fee payments and reported tons for all of the City's franchised haulers for the twelve-month periods ended December 31, 2000 and 2001. These reviews have resulted in the recovery of over $30000 in underpaid C franchise fees and the identification of over 25,000 in overreported tons at the Puente Hills landfill and other disposal sites. Over the last two fiscal years, E. Tseng & Associates has provided the businesses in Vernon with approximately 300 on -site waste assessments. These waste assessments have enabled the City to more accurately measure its total amount of waste generation, and have resulted in several Vernon businesses being recognized by the State for their ®, exemplary recycling practices. As a result of the recycling efforts of the businesses in 4 recycled L, paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 2 of 9 Vernon, the City was able to achieve a waste diversion rate of approximately 53% in the year 2000. SCOPE OF WORK To assist the City to continue with its successful solid waste program, MSW Consultants, and its subcontractor, E. Tseng & Associates, propose to perform the tasks described in the following scope of work and shown in Exhibits 1 and 2. ITask 1— AB 939 Compliance Subtask 1.1— Compile documentation for Biennial Review We will compile a binder of documentation of the various implemented SRRE programs. This will include copies of program brochures, outreach materials, press releases, awards, and other program documentation. This will be used for the Biennial Review to document the City's good faith effort and diversion rate. Copies of the Electronic Annual Reports for each year will also be included. ISubtask 1.2 — Prepare Annual Report We will prepare the City's Annual report to the CIWMB. This task includes preparation of the annual report, completion of the CIWMB Adjustment Method calculation based on the CIWMB approved new base year (1998) study, and preparing materials for CIWMB Office of Local Assistance requested information regarding City of Vernon programs. We will also attend any CIWMB Board or staff meetings at which the City's Annual Report or waste diversion efforts are considered. Subtask 1.3 - Conduct Business Waste Assessments We will continue with the City's program of providing its businesses with technical recycling assistance. We will perform business waste assessments for 100 of the City's businesses in fiscal year 2003 and 2004. For a total of 200 businesses waste assessments). recycled *, paper Ig MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 3 of 9 We expect to complete the first phase of these waste generation studies in November of 2002. We expect to complete the second phase in November of 2003. Our work will consist of contacting and visiting each of the businesses, interviewing their staff regarding their waste management and recycling practices, and documenting our findings. We will assist the businesses we visit in designing and implementing recycling programs. We will continue our "Waste Reduction and Recycling Technical Assistance Outreach" deffort to businesses located in the City of Vernon. We will Utilize updated waste reduction and recycling quantification techniques consistent with the C1WMB approved Diversion Study Guide to estimate impact of existing and new programs. Our long-term goal is to develop the infrastructure to be able to conduct a new base year study for the year 2005, if necessary. Subtask 1.4 — WRAP Award Assistance for Businesses For those businesses we visit that already have exemplary re cycling programs, we w111 assist them in preparing documentation for the WRAP award nomination process. A new C ATMB form has been developed that is intended to simplify the application process. Alternatively, the City may host a local awards recognition event, or participate in the development of a regional program hosted by the proposed Los Angeles Regional Agency (LARA). Subtask 1.5 — Develop Construction and Demolition (C&D) Recycling Ordinance We will assist the City in the implementation of a C & D recycling ordinance. This is one of the benchmarks that the CIWMB looks for in "good faith" programs implemented by the jurisdiction. We will develop a draft ordinance/policy with a tracking mechanism. We will develop a C&D guide for contractors and provide technical assistance as requested by the City. recycled 10 paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 .o Page 4 of 9 Subtask 1.6 - Develop Buy Recycled Policy 7 This is another one of the benchmarks that the CIWMB looks for in "good faith" programs implemented by the jurisdiction. We will develop a draft ordinance/policy with a tracking system and monitoring database for use by the City's purchasing department. This system will be consistent with the forms required of State Facilities to report their recycled content purchases. r Subtask 1.7 - Conduct Limited Pilot Regional Diversion Facility Residual Study 7 The City of Vernon hosts a large number of "regional diversion facilities". Their disposal and diversion can significantly impact the diversion rate of the City and of other jurisdictions. However, many of the standards used to quantify and document the disposal and diversion has not been finalized. We recommend beginning preparations in 2003 for conducting a pilot regional diversion facility residual study. The study will include working with the CIWMB on the survey and documentation standards required to quantify/qualify the diversion and residual tons to modify the Disposal Reporting System. Residual tons attributable to regional diversion facilities can be deducted from the DRS. Recycled tons attributable to the City of Vernon can be counted as diversion tonnage for a new base year, if necessary. This study should be conducted in preparation for 2005 because of the potential need for a new base year study. Therefore, we will conduct a limited pilot to finalize the standards for a full-scale study. The scope of this project does not include a full-scale study of regional diversion facilities. If a full-scale study of regional diversion studies is required, our proposed fees will need to be adjusted. Task 2 — Review Franchise Fee Payments and Reported Tons Task 2.1— Summarize all fee payments and meet with City quarterly Once each calendar quarter, we will summarize the reported gross receipts, fee payments, and tonnage amounts from the Quarterly Solid Waste Reports submitted by the City's 4 recycled 0 paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 5 of 9 refuse haulers. We will analyze the amounts submitted by the haulers by calculating the gross receipts per ton for each hauler. We will compare the tons reported by the haulers with the most recently available data from the Puente Hills landfill Task 2.2 — Perform on -site reviews of 30 franchised haulers each fiscal year During February through June in each fiscal year, we will contact and visit each of the City's 30 franchised haulers. We will, on a sample basis, review the support for the gross receipts and tonnage they report to the City. The scope of our review for each hauler will cover the Quarterly Solid Waste Reports for the most recently completed calendar year. For example, the scope of our review for the reviews we perform in the Spring of 2003 will include the Quarterly Solid Waste Reports for calendar year 2002. We will verify the mathematical accuracy of each of the Quarterly Solid Waste Reports. We will compare the reported gross receipts (or gross billings) to the company's cash receipts or billing system, as appropriate. We will evaluate the company's method for segregating its customers in the City of Vernon from the company's customers in other jurisdictions. We will do this by selecting a random sample of the company's nearby customers that are outside the City, and comparing the service addresses of those customers to the Thomas Guide map book. We will evaluate the reasonableness of the tonnage reported to the City. We will do this g P tY by first gaining an understanding of the company's method for segregating its tonnage in Vernon. We will compare, on a sample basis, the company's reported tonnage to its tonnage record keeping system. We will also evaluate the company's tonnage by comparing certain of its tonnage statistics (e.g., pounds per cubic yard, etc.) to industry averages. We will also be available to answer any questions the haulers may have regarding appropriate methods for segregating and/or estimating their tonnage amounts. We will prepare workpapers that document the work we performed.and that support our findings. We will prepare a brief (two page) summary report for each of the reviews we perform. The summary reports will describes the work we performed and our findings, Irecycled L, paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 6 of 9 and be suitable for including in the City's file for each hauler. Ms. Judy Chan, of Chan Accountancy, will perform a quality review of our workpapers and our summary reports. Subtask 2.3 — Compare tonnage and resolve discrepancies Each quarter, we will obtain the disposal tonnage reports for the most recent calendar quarters from the Puente Hills landfill, the Commerce Waste -to -Energy facility, and the Innovative Waste Control transfer station. These reports summarize (by hauler) the amount of tonnage delivered to each facility and recorded as originating in the City of Vernon. For each of the refuse haulers we review each quarter, we will compare the tonnage on the landfill reports to the tonnage they have reported to the City. We will prepare a schedule showing this comparison, and review it with City staff. We P P g p � ty will work with City staff, the Los Angeles County Sanitation District, Innovative Wast qControl, and the refuse haulers to resolve any major discrepancies. 4 LIMITATIONS Our scope of work and our findings are subject to certain limitations. We believe our work in assisting the City with AB 939 compliance will enhance the likelihood that the City will meet or exceed the 50% diversion goal. However, we do not provide any guarantee that the City will meet its diversion goal or be found by the CIWMB to be in compliance with AB 939. Further, we do not offer any indemnification against any fines, penalties, or other damages that may result from the City being found not to be in compliance with AB 939. Additionally, our review of the refuse haulers' fee payments and reported tonnage will be based upon the procedures we described in Task 2 above. We believe these procedures will efficiently accomplish the City's objectives. However, these procedures do not constitute an audit in accordance with generally accepted auditing standards, the purpose of which are to provide a opinion that the subject financial statements are free from 4 material misstatement. Accordingly, we will not provide such a opinion. 4 4 recycled " paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 7 of 9 PROJECT TEAM MSW Consultants is a team of independent solid waste experts working in concert to assist municipal managers in planning, implementing, monitoring, and evaluating their ® solid waste programs. For purposes of this engagement, SKS Professional Services, Inc., which will be doing business as MSW Consultants, will serve as the prime contractor to the City. Dr. Eugene Tseng of Eugene Tseng & Associates, and Ms. Judy Chan, CPA, of Chan Accountancy Corporation will serve as subcontractors to SKS Professional Services. ® Our team members are skilled professionals with extensive experience in the field of integrated waste management. Our resumes and client references are included in ® Appendix A of this proposal. A brief summary of our qualifications and experience, and our roles in this engagement, are described below. Mr. David L. Davis, CMA — Project Manager and Principal Analyst ® Mr. David Davis is a Certified Management Accountant with over 15 years of experience in the field of solid waste management. He has held key executive positions in both the private and public sectors, and has provided management consulting services to over 50 rmunicipal clients in the areas of financial analysis, rate setting, fee audit, service procurement, regulatory compliance, waste diversion, facility feasibility analysis, and operational assessment. Mr. Davis is active in the solid waste industry and is the Secretary/Treasurer the Southern California Waste Management Forum. Examples of Southern California solid waste clients whom Mr. Davis has served include the cities of Burbank, Camarillo, Carlsbad, Carpinteria, Covina, Glendale, Imperial Beach, La Canada Flintridge, La Quinta, Laguna Beach, Orange, Redondo Beach, Riverside, San Bernardino, San Buenaventura, Santa Clarita, Torrance, the Quad Cities (Dana Point, Laguna Niguel, San Clemente, and San Juan Capistrano), Vernon, and the Western Riverside Council of Governments. Mr. Davis will serve as the Project Manager for this engagement, and report to City staff. Mr. Davis will perform the franchise fee reviews, prepare the summary reports, and recycled paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 8 of 9 perform the reconciliation of the haulers reported tonnage to the landfill tonnage data. He will oversee Dr. Tseng's work and attend all client meetings ® Dr. Eugene Tseng — Project Engineer 7 Dr. Tseng is an environmental engineer and a licensed California attorney specializing in environmental law. He has over 29 years of engineering experience in the municipal solid waste and hazardous waste management fields. Dr. Tseng is primarily involved with assisting cities comply with the requirements of AB 939. He works with the CIWMB, various cities, and waste haulers in providing training to their staff on AB 939 programs and issues. Dr. Tseng designed the technical approach and developed the regulatory compliance measurement scheme used by jurisdictions to measure their progress towards their AB 939 waste diversion goals. Dr. Tseng will serve as Project Engineer. He will coordinate his staff in performing the business waste assessments. He will prepare the City's Annual Reports, and oversee the other AB 939 compliance tasks. Ms. Judy Chan, CPA — Project Analyst Ms. Chan is a Certified Public Accountant with 18 years of public accounting experience. Ms. Chan has extensive experience in providing municipalities and non-profit agencies with performance and compliance auditing, financial auditing, and financial consulting services. Examples of the local government clients in Southern California served by Ms. Chan include the cities of Buena Park, Desert Hot Springs, Escondido, Poway, Rancho Mirage, San Marcos, South Gate, Stanton, and Vista. Ms. Chan will serve as Project Analyst. She will perform a quality review of the franchise fee review workpapers and summary reports. D Irecycled I, paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 9 of 9 PROJECT FEES We will perform the tasks described in the. above Scope of Work section for an amount not to exceed $103,000 in fiscal year 2003, and $103,000 in fiscal year 2004. Our Scope of Work is based on the hours and hourly rates shown in Exhibits 1 and 2 on the following pages. If the City requests that we perform tasks outside the Scope of Work, we would be pleased to do so on a time and materials basis. Prior to performing any tasks outside the Scope of Work, we will obtain written approval from the City. We will submit a single invoice each month with a summary description of the work we performed and a list of the hours worked by each of the project team members extended by their respective hourly billing rates. Out-of-pocket expenses (e.g., travel mileage, travel expenses, etc.) will be billed at cost. Invoices will be due in 30 days. We appreciate this opportunity to offer our services to the City of Vernon. If you have any questions, please feel free to call me at 909/694-4001. Sincerely yours, David L. Davis, CMA Principal Attachments Exhibits 1 and 2 -4 4 recycled co Paper MSW Consultants A Team of Independent Solid Waste Professionals Ez6ibit 1 City of Vernon AB 939 Compliance and Franchise Fee Review Services Proposed Fees - Fiscal 2002-03 Team Member Subtotal Task Description Davis Chan I AB 939 Compliance 1.1 Biennial review and documentation 1.2 2002 Annual Report preparation 1.3 Business waste assessments IA WRAP Award assistance 1.5 C&D Recycling Ordinance 1.6 Buy Recycled Policy 1.7 Regional Diversion Facility Study 0 Subtotal: Task 1 Hours 0 0 0 Subtotal: Task l Fees s0 so s0 2 Hauler Fee Payment Reviews 2.1 Summarize all haulers fee payments quarterly 32 32 2.2 Perform reviews of 30 haulers 320 80 400 203 Compare tonnage; resolve discrepancies 60 60 Subtotal: Task 2 Hours 412 80 492 Subtotal: Task 2 Fees 547,380 58,800 $56,180 Total Hours 412 80 492 Hourly Rate $115 Silo Total Fees 547,380 58,800 556,180 Expenses 5820 Total Fees and Expenses 557,000 Team Member Project Sr' Subtotal Tsang Manager I Engines Sr. Staff Staff 4 8 4 4 0 20 16 8 4 4 0 32 10 40 8 8 360 426 2 8 0 0 40 50 4 8 4 4 0 20 4 8 4 4 0 20 0 0 0 0 0 0 40 80 24 24 400 568 55,000 56,400 SZ400 $1,920 $30,000 $45.720 0 0 0 0 0 0 0 0 0 s0 s0 so s0 s0 s0 40 80 24 24 400 568 $125 S80 Sloo S80 S75 S5,000 56,400 SZ400 51,920 530,000 545,720 S280 546,000 Annual Total FY 2002-03 I 545,720 556,180 s101,900 si, loo S 103,000 recycled Cr paper MSW Consultants A Team of Independent Solid Waste Professionals Exhibit 2 City of Vernon AB 939 Compliance and Franchise Fee Review Services Proposed Fees - Fiscal 2003-04 Task Description Team Member Subtotal Davis Chan I AB 939 Compliance 1.1 Biennial review and documentation 1.2 2003 Annual Report preparation 1.3 Business waste assessments 1.4 WRAP Award assistance 1.5 C&D Recycling Ordinance 1.6 Buy Recycled Policy 1.7 Regional Diversion Facility Study 0 Subtotal: Task 1 Hours 0 0 0 Subtotal: Task 1 Fees s0 s0 so 2 Hauler Fee Payment Reviews 2.1 Summarize all haulers fee payments quarterly 32 32 2.2 Perform reviews of 30 haulers 320 80 400 203 Compare tonnage; resolve discrepancies 60 60 Subtotal: Task 2 Hours 412 80 492 Subtotal: Talc 2 Fees 547,380 $8,800 $56,190 Total Hours 412 80 492 Hourly Rate S115 silo Total Fees 547,380 58,800 $56,180 Expenses 5820 Total Fees and Expenses 557,000 Team Member an �� Subtotal Taemg Manager ��� Sr Staff I SnnH' 4 8 4 4 0 20 16 8 4 4 0 32 10 40 8 8 360 426 2 8 0 0 40 50 0 0 0 0 0 0 0 0 0 0 0 0 8 16 8 8 0 40 40 80 24 24 400 569 $5,000 $6,400 SZ400 $1,920 530,000 $45,720 0 0 0 0 0 0 0 0 0 s0 s0 s0 s0 s0 s0 40 80 24 24 400 568 5125 S80 Sloo S8o S75 $5,000 s6,400 SZ400 $1,920 530,000 545,720 5290 546,000 Annual Total FY 2003-04 1 545,720 1 $56,180 $101,900 sl,lo0 $103,000 recycled CO, paper EXHIBIT B . , a . ' I a ' . a 1 EXHIBIT B 2 INSURANCE SCHEDULE (CONSULTANT) 3 The Consultant shall provide proof of insurance, including a standard certificate of insurance, in at 4 least the following amounts and coverage (combined single limit permitted): 5 I Coverage and Limits 6 Bodily (Injury Property Damage Hazards Each Person Each Accident Each Accident 7 8 Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 9 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 10 Workers' Compensation $ Statutory 11 EmployersLiability $1,000,000 per employer 12 11. General and Professional Liability 13 General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 14 Elevators (if applicable) $1,000,000 $2,000,000 $1,000,000 15 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 16 Contract Liability $1,000 000 $2,000,000 $1,000,000 Professional Liability $1,000,000 $1,000,000 $1,000,000 17 18 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 19 1. An endorsement naming the City of Vernon, its officers, and employees as additional 20 insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or 2 i material reduction of coverage. 22 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may be required by addendum hereto. 23 b. In addition to the standard certificate of insurance, proof of general and professional liability 24 coverage shall be furnished in the form checked below. Certification of the following proofs by 25 the insurance agent or broker will not be accepted: 26 X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and statements in the standard certificate of insurance (attached thereto) are true 27 and correct and that the signator is an officer authorized to so certify. 28 _ A copy of each policy certified by an officer of the underwriter or carrier and notarized. EXHIBIT B CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro—Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/ City Clerk FAX (323) 826-1438 Finance Committee City of Vernon Honorable Members: CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 July 18, 2002 EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 K v n Z In accordance with the passage of AB 939, the City of Vernon is required to divert the percentage of refuse going to landfills from Vernon generators by fifty (50) percent. In the year 2000 the City entered into a Solid Waste Agreement with MSW Consultants for fiscal years 2000-2001 and 2001-2002. At this time it is necessary that a new agreement be entered with MSW for fiscal years 2002-2003 and 2003- 2004 to assist the City with Solid Waste issues in accordance with AB 939 at a cost of $103,000.00 per year (an increase of $11,000.00 per year) This has been reviewed by the Director of Environmental Health and the City Attorney and it is hereby recommended that the agreement with MSW Consulting be approved and executed. Very truly yours, Bruce V. Malkenhorst Director of Finance BVM/gm I City of Vernon Environmental Health Department Memo To: Bruce V. Malkenhorst, City Administrator rom: Lewis Pozzebon, Director, Environmental Health Date: 7/17/2002 Re: Solid Waste Consulting Agreement with MSW Consultants On October 3, 2000, the City Council -approved Resolution No. 7627 which authorized a solid waste consulting services agreement with MSW Consultants (MSW) for fiscal years 2000-01 and 2001-02. During the agreement period MSW has assisted the City by providing AB 939 solid waste program activities including: • Performing a business assistance program to identify waste reduction activities and opportunities. • Conducting audits of non-exclusive franchise solid waste haulers. These audits have resulted in the collection of over $30,000 in underpaid franchise fees. • Planning for and preparing annual solid waste generation reports for submission to the California Integrated Waste Management Board. With the assistance of MSW, we have been able to document in the annual reports the City's progress in complying with State mandated solid waste disposal reduction levels. For the Year 2000, MSW showed that, with the cooperation of the City's businesses, the City exceeded the mandated goal of 50% diversion by documenting a 53% reduction in the volume of solid waste disposed in landfills compared to the volume disposed in landfills in 1990. MSW has submitted a new proposal for consulting services for fiscal years 2002-03 and 2003-04- (attached). Service costs to perform the tasks listed in the proposed agreement are $103,000 per year. The costs in the new agreement are approximately $11,000 more than the previous agreement. The increased costs are reasonable considering the additional services in the new agreement that MSW will be providing (i.e. compilation of documentation for biennial review, development of construction and demolition recycling ordinance) and a higher hourly rate adjusted to bring MSW's rate in line with comparable service rates. Based on the excellent service and cooperation we have received from MSW, I am recommending that the new agreement be submitted to the City Council for approval Please note that Joan Francone has confirmed that MSW's insurance coverage is up to date. Attachment Xc: Ed Olivo, City Attorney 1p/mydoc/sw/ab939/memo/msw agreement memo CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 July 18, 2002 Mr. avid L. Davis ` S Professional Services, Inc. dba MSW Consultants 27393 Ynez Road, uite 160 Temecula, CA 591 EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 VIA FEDERAL EXPRESS om-&u ding Services Agreement - AB 939 Compliance and Franchise Fee Review Services Dear Mr. Davis: Enclosed please find two duplicate originals of the aforementioned Agreement which needs to be signed by the appropriate parties and returned to the City, to the attention of Judy Lehr, Legal Department, by 10 a.m. on Monday, July 22, 2002. The Agreement contains terms that are consistent with the proposal document and is scheduled to be considered by the City Council at its meeting on July 24, 2002. Once the originals are executed by the City, one fully executed original will be returned to you for your files. Please refer to the enclosed "City of Vernon Signature Requirements for City Agreements" and comply with the requirements set forth for your company. I thank you for your cooperation regarding this matter. Very truly yours, coo Eduardo Olivo City Attorney J1 Enclosures cc:.,.Asst. to Chief Deputy City Clerk (no encl.) CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro—Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 December 4, 2002 SKS Professional Services, Inc., dba MSW Consultants Attn: David L. Davis 27393 Ynez Road, Suite 160 Temecula, CA 92591 Re: Consultant Services Agreement Dear Mr. Davis: EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Communitv Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 The insurance requirement has been met. Transmitted herewith is a duplicate original copy of the above referenced agreement approved by the Vernon City Council on July 24, 2002. If you have any questions regarding this matter, please call Mr. Lewis Pozzebon at (323) 583-8811 ext. 229. ery truly yours, A Nelly Gi n Assistant to the Chief Deputy City Clerk NG/gm CC: Lewis Pozzebon Dolores Fonseca *et01AXt4*n Na,. -8027 Agreement No. 02-045 CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro—Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 July 29, 2002 SKS Professional Services, Inc., dba MSW Consultants Attn: David L. Davis 27393 Ynez Road, Suite 160 Temecula, CA 92591 Re: Consultant Services Agreement Dear Mr. Davis EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 In accordance with Section IX.2 of said agreement, you are to furnish the City with proof of Insurance as set forth in the Insurance Schedule, Exhibit "B" of the agreement. Please submit your proof of insurance to Joan Francone, Risk Manager, for review and approval. Upon receipt of said documentation this office will forward to you a fully executed duplicate original agreement. If you should have any questions, please contact Joan Francone at ext. 322. ery truly yours, / Nelly G o e Assistant to the Chief Deputy City Clerk NG/gm cc: Joan Francone Lewis Pozzebon Resolution No. 8027 Agreement File No. 02-045 a 1` CONSULTING SERVICES AGREEMENT 2 3 THIS AGREEMENT is made, entered into and executed in 4 duplicate originals, either copy of which may be considered and used 5 as the original hereof for all purposes, as of this 5k day of July, 6 2002, in the City of Vernon, County of Los Angeles, California 7 8 BY AND BETWEEN THE CITY OF VERNON, a Municipal Corporation (hereinafter 9 referred to as the "City") 4305 Santa Fe Avenue 10 Vernon, CA 90058 11 AND SKS PROFESSIONAL SERVICES, INC., dba MSW CONSULTANTS, 12 (hereinafter referred to as the "Consultant") 13 27393 Ynez Road, Suite 160 Temecula, CA 92591 14 15 WITNESSETH 16 WHEREAS, the City is required by the Integrated Waste 17 Management Act and its amendments (AB 939) to divert the percentage of 18 refuse going to landfills from Vernon generators by fifty percent 19 (50%), to implement certain waste diversion programs described in its 20 Source Reduction and Recycling Element and to submit an Annual Report 21 to the California Integrated Waste Management Board ("CIWMB"); and 22 WHEREAS, the City desires to retain the services of a 23 consultant to provide assistance to the City in complying with AB 939 24 and to provide franchise fee review services; and 25 WHEREAS, the Consultant submitted a proposal to City dated 26 July 6, 2002 (the "Proposal") which includes a description of proposed 27 services and a cost proposal; and 28 WHEREAS, Consultant represents that it is qualified to 2 3 4 5 6 7 8 9 10 11 12 13 14 15 -16 17 18 19 20 21 22 23 24 25 26 27 28 perform such services under this Consulting Services Agreement (hereinafter "Agreement"); and WHEREAS, Consultant is willing to render such professional 11 services as hereinafter defined. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET FORTH HEREIN: I. SCOPE OF SERVICES. The Consultant shall perform the services outlined in the Proposal, which is attached hereto as Exhibit "A" and incorporated herein by reference. The scope of services under this Agreement included Task 1 - AB 939 Compliance and Task 2 - Review Franchise Fee Payments and Reported Tons. Within these two general tasks, the following subtasks are to be performed by Consultant: compile documentation for biennial review, prepare the City's annual report to the CIWMB, conduct business waste assessments, provide WRAP award assistance for businesses, develop construction and demolition recycling ordinance, develop buy recycled policy, conduct limited pilot regional diversion facility residual study, summarize all fee payments and meet with City quarterly, perform on -site reviews of 30 franchised haulers each fiscal year, and compare tonnage and resolve discrepancies. It is understood and agreed that in the event of a conflict between the Proposal and this Agreement, the terms of this Agreement shall prevail. II. USE OF SUBCONTRACTORS It is understood and agreed that Consultant will subcontract a portion of the work to Eugene Tseng & Associates and Chan Accountancy Corporation, but that Consultant is solely responsible for the performance of this Agreement, including performance of any tasks -2- '.-1 by said subcontractors. The Consultant may not engage any other 2 subcontractors to complete the work described in the Scope of Services 3 with the approval of the City. 4 III. TIME OF PERFORMANCE. 5 Consultant's services herewith shall commence upon signing 6 of the Agreement and shall be completed by June 30, 2004, unless 7 terminated or extended. 8 IV. COMPENSATION. 9 1. Fee for Services. The City shall compensate the 10 Consultant pursuant to the rates and costs as set forth in the 11 Proposal for the services performed, in a total sum not to exceed 12 $103,000.00 in each of the fiscal years 2002-2003 and 2003-2004. 13 2. Expenses. Expenses may only be billed if they 14 have been approved in writing, in advance, by the City Administrator. 15 V. METHOD OF PAYMENT. 161 Within thirty (30) days after the last day of any month in 17 which services have been performed or costs incurred hereunder, the 18 Consultant shall submit an invoice to the City stating the amount due 19 the Consultant. Invoices shall contain an itemization of services 20 rendered, directly related job expenses and subcontract charges 21 incurred by the Consultant and for which compensation is due. 22 Consultant shall be responsible for paying any subcontractors used in 23 the performance of this Agreement. Subcontractors shall not bill the 24 City directly. 25 Payment of the invoice shall be made after acceptance and 26 approval by the City within thirty (30) days of receipt. The City's 27 approval of the invoice shall not be unreasonably withheld. 28 -3- It A 2 3 A 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 VI. CHANGES AND EXTRA SERVICES. The City reserves the right to request changes in the services to be performed by the Consultant. All such changes shall be incorporated in written change orders executed by the City and the Consultant which shall specify the changes ordered and the adjustment of compensation and completion time required thereof. Any services added to the scope of this Agreement by a change order shall be executed under all applicable conditions of this Agreement. No claim for additional compensation or extension of time shall be recognized unless contained in a duly executed change order. VII. PRODUCTS OF CONSULTING. All documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by Consultant under this Agreement, with the exception of confidential information provided by businesses located in the City, shall be considered the property of City. Said documents and materials shall be delivered to City by Consultant as they are generated; however, Consultant may take and retain copies of said documents and materials as desired. VIII. CONFIDENTIAL INFORMATION. 1. Access to Confidential Information. The City may provide Consultant with, or allow Consultant access to, certain information not available to the public concerning the City, or businesses located in the City. The information may include company information, taxes, sales, value of assets, or other such information. All such information shall be known as "Confidential Information." 2. No Disclosure. Except as expressly permitted, Consultant shall not disclose, permit the disclosure of, release, disseminate, or transfer, whether orally or by any other means, any -4- ,__4 part of such Confidential Information to any other person or entity, 2 whether corporate, governmental, or individual, without the express 3 prior written consent of an authorized representative of the City. 4 Consultant shall return any written Confidential Information, and all 5 copies made of such items, to the City upon the City's written 6 request, but in any event not later than the date that the Consultant 7 has performed all services to be performed pursuant to this Agreement. 8 Consultant hereby agrees that such Confidential Information and any 9 documents provided may be used by Consultant only as authorized by the 10 City. Consultant shall take reasonable measures to avoid any 11 disclosure of any such Confidential Information to any unauthorized 12 person. 13 3. Court Ordered Disclosure. Consultant shall 14 immediately notify the City of any court order or subpoena requiring 15 disclosure of Confidential Information, and shall cooperate with legal 16 counsel in the appeal or challenge of any such order or subpoena. 17 Recipient may only disclose Confidential Information required to be 18 disclosed pursuant to court order or subpoena after legal counsel has 19 exhausted any lawful and timely appeal or challenge. 20 . 4. Remedies. In addition to any other remedies that 21 it may have at law or in equity, the City shall be entitled to a 22 temporary and permanent injunction by a court of competent 23 jurisdiction against any breach or threatened breach of the 24 Confidential Information -provisions of this Agreement. Consultant 25 acknowledges that in case of such breach or threatened breach of said 26 provisions, the City would have no adequate remedy at law. 27 IX. INDEMNITY AND INSURANCE. 28 1. Indemnification. The Consultant shall indemnify, -5- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 defend, protect and hold the City and its officers, agents and employees, free and harmless from and against any and all claims, demands, losses, damages, liabilities, fines, charges, penalties, orders or judgments, and all costs and expenses incurred in connection therewith, including reasonable attorney's fees and costs of defense arising out of the services performed under this Agreement, except to the extent arising from or caused by the sole active negligence or willful misconduct of the City, its officers, agents or employees. 2. Insurance. Prior to commencing work hereunder, the Consultant shall provide the City with proof of insurance providing and maintaining the coverages and endorsements set forth in the Insurance Schedule attached hereto as Exhibit "B" and made a part hereof by reference. Said proof of insurance shall also provide that said policy or policies shall not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. Consultant shall not permit a subcontractor Vendor to perform work on City premises unless and until a certificate of insurance is obtained showing that such subcontractor or vendor has worker's compensation coverage. If consultant employs subcontractors as part of the services rendered, consultant's protective coverage is required. Consultant may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. X. GENERAL PROVISIONS. 1. Independent Contractor. At all times during the term of this Agreement, the Consultant shall be an independent contractor and shall not be an employee of the City. The City shall _1 have the right to control the Consultant only insofar as the results 2 of the Consultant's services rendered pursuant to this Agreement; 3 however, the City shall not have the right to control the means by 4 which the Consultant accomplishes services rendered pursuant to the 5 Agreement except to the extent that such services involve the use of 6 City property or Confidential Information. 7 2. Consultant Not Agent. Except as the City may 8 specify in writing, the Consultant shall have no authority, express or 9 implied, to act on behalf of the City in any capacity whatsoever as an 10 agent. The Consultant shall have no authority, expressed or implied, 11 pursuant to this Agreement to bind the City to any obligation 12 whatsoever. 13 3. Assignment Prohibited. Consultant may not assign 141 any right or obligation of this Agreement except with the express 15 written consent of the City. Any other attempted or purported 16 assignment of any right or obligation pursuant to this Agreement shall 17 be void and of no effect. 18 4. Termination. This Agreement may be terminated by 19 the City on thirty (30) days written notice to the Consultant. The 20 effective date of cancellation shall be after the 30th day after said 21 written notice. The Consultant shall be entitled to the compensation 22 earned by it prior to the date of the termination notice, computed pro 23 rata up to and including that date, plus compensation for work 24 performed during the thirty -day notice period and authorized in the 25 termination notice. 26 5. Notices. Any and all notices, demands, invoices, 27 and written communications between the parties shall be addressed to 28 the parties as follows: -7- 1 CITY: THE CITY OF VERNON 2 ATTN: Bruce V. Malkenhorst City Administrator 3 4305 Santa Fe Avenue Vernon, CA 90058-0805 4 CONSULTANT: SKS Professional Services, Inc. 5 ATTN: David L. Davis 27393 Ynez Road, Suite 160 6 Temecula, CA 92591 7 Any such notices,.demands, invoices and written 8 communications shall be (i) hand delivered, (ii) sent by telecopy and 9 mail, or (iii) sent by mail. Mail shall be conclusively deemed to 10 have been received by the addressee five (5) days after the deposit 11 thereof in the United States Mail, postage prepaid and properly 12 addressed as noted above. 13 XI. ENTIRE AGREEMENT. 141 This Agreement supersedes any and all other agreements, 15 either oral or in writing, between the parties with respect to the 16 subject matter herein. Each party to this Agreement acknowledges that 17 no representations have been made by any party which are not embodied 181 herein and that no other agreement, statement or promise not contained 19 in this Agreement shall be valid and binding. Any modification of 20 this Agreement will be effective only if it is in writing signed by 21 the parties. 22 XII. BENEFIT OF AGREEMENT. 23 This Agreement shall bind and benefit the parties hereto and 24 their heirs, successors, and permitted assigns. 25 XIII. GOVERNING LAW. 26 This Agreement shall be governed by and construed and 27 enforced in accordance with the laws of the State of California. 28 / / / •.-1 IN WITNESS WHEREOF, the City and the Consultant have 2 executed this Agreement by and through their authorized officers as of 31 the date first hereinabove set forth. 4 5 6 CITY OF VERNON 7 B>fE r,� NIS C. MAL URG, Ma or 8 9 ATTES 10 11 BRUCE V. MALKENHORST, City Clerk 12 13 APPROVED AS TO FORM: 1 14 15EDUARDO OLIVO, City A orney 16 17 SKS Profe ional ervices, Inc. 18 By: r 19 20 Title: 21 By: � 22 23 Title: 24 25 26 27 28 MSW Consultants A Team of Independent Solid Waste Professionals 27393 Ynez Road, Suite 160 Temecula, California 92591 909/6%-4001 fax 909/694-9001 e-mail: MSWconsultantsOaol.com July 6, 2002 Mr. Lew Pozzebon Director of Environmental Health City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Proposal to Provide AB 939 Compliance and Franchise Fee Review Services Dear Mr. Pozzebon: As you have requested, SKS Professional Services, Inc., doing business as MSW Consultants, is submitting this proposal to continue providing solid waste consulting services to the City of Vernon. This proposal describes the background, scope of work, limitations, project fees and other terms and conditions under which we will provide AB 939 compliance and franchise fee review services to the City for the fiscal years ending June 30, 2003 and 2004. BACKGROUND As you know, MSW Consultants and its subcontractor, E. Tseng & Associates, have been providing solid waste consulting services for the City. For the two fiscal years ending June 30, 2002, MSW Consultants will have reviewed the fee payments and reported tons for all of the City's franchised haulers for the twelve-month periods ended December 31, 2000 and 2001. These reviews have resulted in the recovery of over $30,000 in underpaid franchise fees and the identification of over 25,000 in overreported tons at the Puente Hills landfill and other disposal sites. Over the last two fiscal years, E. Tseng & Associates has provided the businesses in Vernon with approximately 300 on -site waste assessments. These waste assessments have enabled the City to more accurately measure its total amount of waste generation, and have resulted in several Vernon businesses being recognized by the State for their exemplary recycling practices. As a result of the recycling efforts of the businesses in recycled L ; paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 2 of 9 Vernon, the City was able to achieve a waste diversion rate of approximately 53% in the year 2000. SCOPE OF WORK To assist the City to continue with its successful solid waste program, MSW Consultants, and its subcontractor, E. Tseng & Associates, propose to perform the tasks described in the following scope of work and shown in Exhibits 1 and 2. Task 1— AB 939 Compliance Subtask 1.1— Compile documentation for Biennial Review We will compile a binder of documentation of the various implemented SRRE programs. This will include copies of program brochures, outreach materials, press releases, awards, and other program documentation. This will be used for the Biennial Review to document the City's good faith effort and diversion rate. Copies of the Electronic Annual Reports for each year will also be included. Subtask 1.2 — Prepare Annual Report We will prepare the City's Annual report to the CIWMB. This task includes preparation of the annual report, completion of the CIWMB Adjustment Method calculation based on the CIWMB approved new base year (1998) study, and preparing materials for CIWMB Office of Local Assistance requested information regarding City of Vernon programs. We will also attend any CIWMB Board or staff meetings at which the City's Annual Report or waste diversion efforts are considered. Subtask 1.3 - Conduct Business Waste Assessments We will continue with the City's program of providing its businesses with technical recycling assistance. We will perform business waste assessments for 100 of the City's businesses in fiscal year 2003 and 2004. (For a total of 200 businesses waste assessments). Irecycled 0 paper MSW Consultants A Team of Independent solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 3 of 9 We expect to complete the first phase of these waste generation studies in November of 2002. We expect to complete the second phase in November of 2003. Our work will consist of contacting and visiting each of the businesses, interviewing their staff regarding their waste management and recycling practices, and documenting our findings. We will assist the businesses we visit in designing and implementing recycling programs. We will continue our "Waste Reduction and Recycling Technical Assistance Outreach" effort to businesses located in the City of Vernon. We will Utilize updated waste reduction and recycling quantification techniques consistent with the CFA M 3 approved Diversion Study Guide to estimate impact of existing and new programs. Our long-term goal is to develop the infrastructure to be able to conduct a new base year study for the year 2005, if necessary. Subtask 1.4 — WRAP Award Assistance for Businesses For those businesses we visit that already have exemplary recycling programs, we will assist them in preparing documentation for the WRAP award nomination process. A new C ATMB form has been developed that is intended to simplify the application process. Alternatively, the City may host a local awards recognition event, or participate in the development of a regional program hosted by the proposed Los Angeles Regional Agency (LARA). ISubtask 1.5 — Develop Construction and Demolition (C&D) Recycling Ordinance We will assist the City in the implementation of a C & D recycling ordinance. This is one of the benchmarks that the CIWMB looks for in "good faith" programs implemented by the jurisdiction. We will develop a draft ordinance/policy with a tracking mechanism. We will develop a C&D guide for contractors and provide technical assistance as requested by the City. recycW 1*11 0 paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 4 of 9 Subtask 1.6 — Develop Buy Recycled Policy This is another one of the benchmarks that the CIWMB looks for in "good faith" programs implemented by the jurisdiction. We will develop a draft ordinance/policy with a tracking system and monitoring database for use by the City's purchasing department. This system will be consistent with the forms required of State Facilities to report their recycled content purchases. Subtask 1.7 - Conduct Limited Pilot Regional Diversion Facility Residual Study The City of Vernon hosts a large number of "regional diversion facilities". Their disposal and diversion can significantly impact the diversion rate of the City and of other jurisdictions. However, many of the standards used to quantify and document the disposal and diversion has not been finalized. We recommend beginning preparations in 2003 for conducting a pilot regional diversion facility residual study. The study will include working with the CIWMB on the survey and documentation standards required to quantify/qualify the diversion and residual tons to modify the Disposal Reporting System. Residual tons attributable to regional diversion facilities can be deducted from the DRS. Recycled tons attributable to the City of Vernon can be counted as diversion tonnage for a new base year, if necessary. This study should be conducted in preparation for 2005 because of the potential need for a P P new base year study. Therefore, we will conduct a limited pilot to finalize the standards for a full-scale study. The scope of this project does not include a full-scale study of regional diversion facilities. If a full-scale study of regional diversion studies is required, our proposed fees will need to be adjusted. Task 2 — Review Franchise Fee Payments and Reported Tons Task 2.1— Summarize all fee payments and meet with City quarterly Once each calendar uarter, we will su mmarize ummanze the reported gross receipts, fee payments, and tonnage amounts from the Quarterly Solid Waste Reports submitted by the City's 4 recycled CO paper MSW Consultants _ A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 5 of 9 refuse haulers. We will analyze the amounts submitted by the haulers by calculating the gross receipts per ton for each hauler. We will compare the tons reported by the haulers with the most recently available data from the Puente Hills landfill Task 2.2 — Perform on -site reviews of 30 franchised haulers each fiscal year During February through June in each fiscal year, we will contact and visit each of the City's 30 franchised haulers. We will, on a sample basis, review the support for the gross receipts and tonnage they report to the City. The scope of our review for each hauler will cover the Quarterly Solid Waste Reports for the most recently completed calendar year. For example, the scope of our review for the reviews we perform in the Spring of 2003 will include the Quarterly Solid Waste Reports for calendar year 2002. We will verify the mathematical accuracy of each of the Quarterly Solid Waste Reports. We will compare the reported gross receipts (or gross billings) to the company's cash receipts or billing system, as appropriate. We will evaluate the company's method for segregating its customers in the City of Vernon from the company's customers in other jurisdictions. We will do this by selecting a random sample of the company's nearby customers that are outside the City, and comparing the service addresses of those customers to the Thomas Guide map book. We will evaluate the reasonableness of the P City. re tonnage reported to the Ci . We will do this by first gaining an understanding of the company's method for segregating its tonnage in Vernon. We will compare, on a sample basis, the company's reported tonnage to its tonnage record keeping system. We will also evaluate the company's tonnage by comparing certain of its tonnage statistics (e.g., pounds per cubic yard, etc.) to industry averages. We will also be available to answer any questions the haulers may have regarding appropriate methods for segregating and/or estimating their tonnage amounts. We will prepare workpapers that document the work we performed and that support our findings. We will prepare a brief (two page) summary report for each of the reviews we perform. The summary reports will describes the work we performed and our findings, MSW Consultants . A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 6 of 9 a and be suitable for including in the City's file for each hauler. Ms. Judy Chan, of Chan Accountancy, will perform a quality review of our workpapers and our summary reports. Subtask 2.3 — Compare tonnage and resolve discrepancies Each quarter, we will obtain the disposal tonnage reports for the most recent calendar quarters from the Puente Hills landfill, the Commerce Waste -to -Energy facility, and the Innovative Waste Control transfer station. These reports summarize (by hauler) the amount of tonnage delivered to each facility and recorded as originating in the City of Vernon. For each of the refuse haulers we review each quarter, we will compare the tonnage on the landfill reports to the tonnage they have reported to the City. We will prepare a schedule showing this comparison, and review it with City staff. We P tY will work with City staff, the Los Angeles County Sanitation District, Innovative Wast 4 Control, and the refuse haulers to resolve any major discrepancies. LIMITATIONS Our scope of work and our findings are subject to certain limitations. We believe our work in assisting the City with AB 939 compliance will enhance the likelihood that the City will meet or exceed the 50% diversion goal. However, we do not provide any guarantee that the City will meet its diversion goal or be found by the CIWMB to be in compliance with AB 939. Further, we do not offer any indemnification against any fines, penalties, or other damages that may result from the City being found not to be in compliance with AB 939. Additionally, our review of the refuse haulers' fee payments and reported tonnage will be based upon the procedures we described in Task 2 above. We believe these procedures will efficiently accomplish the City's objectives. However, these procedures do not constitute an audit in accordance with generally accepted auditing standards, the purpose of which are to provide a opinion that the subject financial statements are free from material misstatement. Accordingly, we will not provide such a opinion. recycled co paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 7 of 9 PROJECT TEAM MSW Consultants is a team of independent solid waste experts working in concert to assist municipal managers in planning, implementing, monitoring, and evaluating their solid waste programs. For purposes of this engagement, SKS Professional Services, Inc., which will be doing business as MSW Consultants, will serve as the prime contractor to ® the City. Dr. Eugene Tseng of Eugene Tseng & Associates, and Ms. Judy Chan, CPA, of Chan Accountancy Corporation will serve as subcontractors to SKS Professional Services. Our team members are skilled professionals with extensive experience in the field of integrated waste management. Our resumes and client references are included in ® Appendix A of this proposal. A brief summary of our qualifications and experience, and our roles in this engagement, are described below. ® Mr. David L. Davis, CMA — Project Manager and Principal Analyst ® Mr. David Davis is a Certified Management Accountant with over 15 years of experience in the field of solid waste management. He has held key executive positions in both the private and public sectors, and has provided management consulting services to over 50 municipal clients in the areas of financial analysis, rate setting, fee audit, service procurement, regulatory compliance, waste diversion, facility feasibility analysis, and operational assessment. Mr. Davis is active in the solid waste industry and is the Secretary/Treasurer the Southern California Waste Management Forum. Examples of Southern California solid waste clients whom Mr. Davis has served include the cities of Burbank, Camarillo, Carlsbad, Carpinteria, Covina, Glendale, Imperial Beach, La Canada Flintridge, La Quinta, Laguna Beach, Orange, Redondo Beach, Riverside, San Bernardino, San Buenaventura, Santa Clarita, Torrance, the Quad Cities (Dana Point, Laguna Niguel, San Clemente, and San Juan Capistrano), Vernon, and the Western Riverside Council of Governments. Mr. Davis will serve as the Project Manager for this engagement, and report to City staff. Mr. Davis will perform the franchise fee reviews, prepare the summary reports, and Irecycled 0 paper MSW Consultants A Team of Independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 8 of 9 perform the reconciliation of the haulers reported tonnage to the landfill tonnage data. He 4 will oversee Dr. Tseng's work and attend all client meetings Dr. Eugene Tseng — Project Engineer Dr. Tseng is an environmental engineer and a licensed California attorney specializing in environmental law. He has over 29 years of engineering experience in the municipal solid waste and hazardous waste management fields. Dr. Tseng is primarily involved with assisting cities comply with the requirements of AB 939. He works with the CIVVTMB, various cities, and waste haulers in providing training to their staff on AB 939 programs and issues. Dr. Tseng designed the technical approach and developed the regulatory compliance measurement scheme used by jurisdictions to measure their progress towards their AB 939 waste diversion goals. Dr. Tseng will serve as Project Engineer. He will coordinate his staff in performing the business waste assessments. He will prepare the City's Annual Reports, and oversee the other AB 939 compliance tasks. ® Ms. Judy Chan, CPA - Project Analyst 7 Ms. Chan is a Certified Public Accountant with 18 years of public accounting experience. Ms. Chan has extensive experience in providing municipalities and non-profit agencies with performance and compliance auditing, P p g, financial auditing, and financial consulting services. Examples of the local government clients in Southern California served by Ms. Chan include the cities of Buena Park, Desert Hot Springs, Escondido, Poway, Rancho Mirage, San Marcos, South Gate, Stanton, and Vista. Ms. Chan will serve as Project Analyst. She will perform a quality review of the franchise fee review workpapers and summary reports. Irecycled T Paper MSW Consultants A Team of independent Solid Waste Professionals Mr. Lew Pozzebon June 24, 2002 Page 9 of 9 PROJECT FEES We will perform the tasks described in the. above Scope of Work section for an amount not to exceed $103,000 in fiscal year 2003, and $103,000 in fiscal year 2004. Our Scope of Work is based on the hours and hourly rates shown in Exhibits 1 and 2 on the following pages. If the City requests that we perform tasks outside the Scope of Work, we would be pleased to do so on a time and materials basis. Prior to performing any tasks outside the Scope of Work, we will obtain written approval from the City. We will submit a single invoice each month with a summary description of the work we performed and a list of the hours worked by each of the project team members extended by their respective hourly billing rates. Out-of-pocket expenses (e.g., travel mileage, travel expenses, etc.) will be billed at cost. Invoices will be due in 30 days. We appreciate this opportunity to offer our services to the City of Vernon. If you have any questions, please feel free to call me at 909/694-4001. Sincerely yours, David L. Davis, CMA Principal Attachments Exhibits 1 and 2 4 recycled 'CA paper MSW Consultants i A Team of Independent Solid Waste Professionals Exhibit 1 City of Vernon AB 939 Compliance and Franchise Fee Review Services Proposed Fees - Fiscal 2002-03 Team Member Subtotal Task Description Davis Chan 1 AB 939 Compilance 1.1 Biennial review and documentation 1.2 2002 Annual Report prepamtkm 13 Business warn assessments 1.4 WRAP Award assistance 1.5 CAD Recycling Ordinance 1.6 Buy Recycled Policy 1.7 Regional Diversion Facility Study 0 Subtotal: Task 1 Hours 0 0 0 Subtotal: Task 1 Fees SO so so 2 Hauler Fee Payment Reviews 2.1 Summarize all haulers fee payments quarterly 32 32 2.2 Perform reviews of 30 haulers 320 80 400 203 Compare tonnage. resolve discrepancies 60 60 Subtotal: Task 2 Hours 412 80 492 Subtotal: Task 2 Fees $47.380 58,800 $56,190 Total Hours 412 so 492 Hourly Rate MIS $110 Total Fees 547,380 58,800 556,180 Expenses $820 Total Fees and Expenses 557,000 Team Member Subtotal Tsemg �I I i Sr. Staff Staff 4 8 4 4 0 20 16 8 4 4 0 32 10 40 8 8 360 426 2 8 0 0 40 50 4 8 4 4 0 20 4 8 4 4 0 20 0 0 0 0 0 0 40 80 24 24 400 568 55,000 56,400 SZ400 S1,920 530,000 545,720 0 0 0 0 0 0 0 0 0 m so so SO so SO 40 80 24 24 400 568 $125 S80 $100 S80 $75 S5,000 56,400 52,400 $1,920 S30,000 545,720 $290 S46,000 Amwal Total FY 2002.03 $45,720 556,180 $101,900 $1,100 SI03,000 recycled Cr Paper MSW Consultants A Team of Independent Solid Waste Professionals Exhibit 2 City of Vernon AB 939 Compliance and Franchise Fee Review Services Proposed Fees - Fiscal 2003-04 Task Description Team Member Subtotal Davis Chan 1 AB 939 Compliance 1.1 Biennial review and documentation 1.2 2003 Annual Report preparation 1.3 Business waste assessments 1.4 WRAP Award assistance 1.5 Cd:D Recycling Ordinance 1.6 Buy Recycled Policy 1.7 Regional Diversion Facility Study 0 Subtotal: Task I Hours 0 0 0 Subtotal: Task I Fees SO SO s0 2 Hauler Fee Payment Reviews 2.1 Summarize all haulers fee payments quarterly 32 32 2.2 Perform reviews of 30 haulers 320 80 400 203 Compare, tonnage; resolve discrepancies 60 60 Subtotal: Task 2 Hours 412 80 492 Subsotal: Task 2 Fees S47,380 S8,800 S56,180 Total Hours 412 80 492 Hourly Rate Sits $110 Toad Fees $47.390 S8,800 S56,180 Expenses S820 Total Fees and Expenses S57,000 Team Member Tseog mparont . Sr. Staff Stall' 4 8 4 4 0 20 16 8 4 4 0 32 10 40 8 8 360 426 2 8 0 0 40 5o 0 0 0 0 0 -0 0 0 0 0 0 0 8 16 8 8 0 40 40 80 24 24 400 568 $5,000 $6,400 S2,400 S1,920 $30,000 S45,720 0 0 0 0 0 0 0 0 0 SO SO s0 s0 $0 m 40 80 24 24 400 %8 S125 S80 5100 $80 $75 $5,000 S6,400 SZ400 S1,920 $30,000 S45,720 $290 S46,000 recycled C i paper M Annual Total FY 2003-04 I S45,720 I S56,180 $101,900 $1,100 $103,000 . r .1 EXHIBIT B 2 INSURANCE SCHEDULE (CONSULTANT) 3 The Consultant shall provide proof of insurance, including a standard certificate of insurance, in at 4 least the following amounts and coverage (combined single limit permitted): 5 I Coverage and Limits 6 Bodily Injury Property Damage Hazards Each Person Each Accident Each Accident 7 8 Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 9 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 10 Workers' Compensation $ Statutory 11 Employers' Liability $1 000 000 per employer 12 II. General and Professional Liability 13 General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 14 Elevators (if applicable) $1,000,000 $2,000,000 $1,000,000 15 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 16 Contract Liability $1,000 000 $2 000 000 $1,000,000 17 Professional Liability $1 nr - 000 $1,000 000 $1,000,000 18 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 19 1. An endorsement naming the City of Vernon, its officers, and employees as additional 20 insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or 2 i material reduction of coverage. 22 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may be required by addendum hereto. 23 b. In addition to the standard certificate of insurance, proof of general and professional liability 24 coverage shall be furnished in the form checked below. Certification of the following proofs by 25 the insurance aizent or broker will not be accepted: 26 X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and statements in the standard certificate of insurance (attached thereto) are true 27 and correct and that the signator is an officer authorized to so certify. 28 _ A copy of each policy certified by an officer of the underwriter or carrier and notarized. EXHIBIT B