Loading...
Resolution No. 90821 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 RESOLUTION NO. 9082 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 SOLID WASTE CONSULTING SERVICES 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 (500), 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, ("MSW") 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, MSW has provided services to the City in the past regarding compliance with the requirements of AB 939 and thus should be able to provide the services now required by the City in a more efficient and effective manner; and WHEREAS, by memo dated May 25, 2006, the Director of Environmental Health has recommended that an agreement with MSW be approved and executed for fiscal years 2006-2007 and 2007-2008 for services relating to AB 939 compliance and franchise fees, and other related solid waste consulting tasks; 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 1 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 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 CIT) 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 an correct. SECTION 2: The City Council of the City of Vernon hereby approves the Consulting Services Agreement, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor to execute the Amendment for, and on behalf of, the City of Vernon and the Acting City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby authorizes the Acting City Clerk, or his designee, to make whatever nonsubstantive, administrative and/or text changes, upon advice of counsel, to the Agreement. SECTION 5: The City Council of the City of Vernon hereby directs the Acting 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 - R t 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 6: The Acting 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 21st day of June, 2006. IATT 1 BRUCE Actin MALKENHORST, JR. ty Clerk THOMAS A. YBARRA, Mayor Pro Tem - 3 - 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, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9082, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, June 21, 2006, and thereafter was duly signed by the Mayor Pro Tem of the City of Vernon. RUCE V. MALKENHORST, JR. Acting City Clerk I (SEAL) - 4 - EXHIBIT 0 I 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 as 5 the original hereof for all purposes, as of this 21St day of June, 6 2006, 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 161 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 (i) provide assistance to the City in complying with AB 24 939; (ii) provide franchise fee review services; and (iii) provide 25 related solid waste consulting tasks; and 26 WHEREAS, the Consultant submitted a proposal to City dated 27 May 24, 2006 (the "Proposal") which includes a description of proposed 28 services and a cost proposal; and 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 WHEREAS, Consultant represents that it is qualified to perform such services under this Consulting Services Agreement (hereinafter "Agreement"); and WHEREAS, Consultant is willing to render such professional II services as hereinafter defined. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET II FORTH HEREIN: 1. SCOPE OF SERVICES. The Consultant shall perform the services outlined in the Proposal, which is attached hereto as Exhibit A and incorporated by reference. The scope of services under this Agreement include 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: prepare the City's AB 939 Annual Reports to the CIWMB; provide technical recycling assistance to businesses; assist in the implementation of a construction and demolition -waste reduction and recycling program; assist in conducting SWAP and/or other award programs; organize and co -host awards ceremony; assist in developing new waste diversion programs; perform other regulatory compliance or solid waste related task; perform on site reviews of 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. 2. USE OF SUBCONTRACTORS It is understood and agreed that Consultant will subcontract a portion of the work to Eugene Tseng of Eugene Tseng & Associates, but that Consultant is solely responsible for the performance of this -2- r i , I Agreement, including performance of any tasks by said subcontractors. 2 The Consultant may not engage any other subcontractors to complete the 3 work described in the Scope of Services without the approval of the 4 City. 5 3. TIME OF PERFORMANCE. 6 Consultant's services herewith shall commence upon signing 7 of the Agreement and shall be completed by June 30, 2008, unless 8 terminated or extended. 9 4. COMPENSATION. 10 a. Fee for Services for Fiscal Year 2006-07. The 11 City shall compensate the Consultant pursuant to the rates and costs 12 as set forth in the Proposal for the services performed, in a total 13 sum not to exceed $127,000.00. 14 b. Fee for Services for Fiscal Year 2007-08. The 15 City shall compensate the Consultant pursuant to the rates and costs 16 as set forth in the Proposal for the services performed, in a total 17 sum not to exceed $133,000.00. 18 C. Expenses. Expenses may only be billed if they 191 have been approved in writing, in advance, by the Acting City Clerk. 20 5. METHOD OF PAYMENT. 21 Within thirty (30) days after the last day of any month in 22 which services have been performed or costs incurred hereunder, the 23 Consultant shall submit an invoice to the City stating the amount due 24 the Consultant. Invoices shall contain an itemization of services 25 rendered, directly related job expenses and subcontract charges 26 incurred by the Consultant and for which compensation is due. 27 Consultant shall be responsible for paying any subcontractors used in 28 the performance of this Agreement. Subcontractors shall not bill the -3- I City directly. 2 Payment of the invoice shall be made after acceptance and 3 approval by the City within thirty (30) days of receipt. The City's 4 approval of the invoice shall not be unreasonably withheld. 5 6. CHANGES AND EXTRA SERVICES. 6 The City reserves the right to request changes in the 7 services to be performed by the Consultant. All such changes shall be 8 incorporated in written change orders executed by the City and the 9 Consultant which shall specify the changes ordered and the adjustment 10 of compensation and completion time required thereof. 11 Any services added to the scope of this Agreement by a 12 change order shall be executed under all applicable conditions of this 13 Agreement. No claim for additional compensation or extension of time 14 shall be recognized unless contained in a duly executed change order. 15 7. PRODUCTS OF CONSULTING. 16 All documents, data, studies, surveys, drawings, maps, 17 models, photographs and reports prepared by Consultant under this 18 Agreement, with the exception of confidential information provided by 19 businesses located in the City, shall be considered the property of 20 City. Said documents and materials shall be delivered to City by 21 Consultant as they are generated; however, Consultant may take and 22 retain copies of said documents and materials as desired. 23 8. CONFIDENTIAL INFORMATION. 24 a. Access to Confidential Information. City may 25 provide Consultant and/or its subcontractors with, or allow Consultant 26 access to, certain information deemed relevant by City, not available 27 to the public concerning City, or businesses located in City. The 2$ information may include company information, taxes, sales, value of -4- I assets, utility usage or other such information. All such information 2 shall be known as "Confidential Information" and shall not be used to 3 circumvent the responsibility of either party to this Agreement. 4 b. No Disclosure. Except as expressly permitted, 5 Consultant and/or its subcontractors shall not disclose, permit the 6 disclosure of, release, disseminate, or transfer, whether orally or by 7 any other means, any part of such Confidential Information to any 8 other person or entity, whether corporate, governmental, or 9 individual, without the express prior written consent of an authorized 10 representative of City. Consultant and/or its subcontractors shall 11 return any and all written Confidential Information and all copies 12 made of such items to City upon City's written request, but in any 13 event not later than the date that Consultant has performed all 14 services to be performed pursuant to this Agreement. Consultant 15 hereby agrees that such Confidential Information and any documents 16 provided may be used by Consultant and/or its subcontractors only as 17 authorized by City. Consultant's contracts with subcontractors shall 18 include provisions that bind the subcontractors to this non -disclosure 19 requirement. Consultant shall take reasonable measures to avoid any 20 disclosure of any such Confidential Information to any unauthorized 21 person. 22 C. Court Ordered Disclosure. Consultant shall 23 immediately notify the City of any court order or subpoena or other 24 directive of a court, administrative agency, quasi-judicial body or 25 arbitration panel requiring disclosure of Confidential Information, 26 and shall cooperate with legal counsel in the appeal or challenge of 27 any such order or subpoena and City shall reimburse Consultant for 28 such assistance on a time and materials basis. Consultant may only -5- I disclose Confidential Information required to be disclosed pursuant to 2 a valid court order or subpoena after legal counsel has exhausted any 3 lawful and timely appeal or challenge, to the extent that such appeal 4 or challenge does not hinder Consultant from its obligations under 5 such court order or subpoena. 6 d. Remedies. In addition to any other remedies that 7 it may have at law or in equity, City shall be entitled to a temporary $ and permanent injunction by a court of competent jurisdiction against 9 any breach or threatened breach of the Confidential Information 101 provisions of this Agreement. Consultant acknowledges that in case of III such breach or threatened breach of said provisions, City would have 121 no adequate remedy at law. 13 9. INDEMNITY AND INSURANCE. 14 a. Indemnification. Consultant shall indemnify, 15 defend, protect and hold harmless the City and its officers, agents 16 and employees, free from and against any and all claims, demands, 17 losses, damages, liabilities, fines, charges, penalties, orders, 1$ judgments and all costs and expenses incurred in connection therewith, 19 including reasonable attorney's fees and costs of defense arising out 20 of the services performed under this Agreement, except to the extent 21 arising from or caused by the sole negligence or willful misconduct of 22 the City, its officers, agents or employees. 23 b. Insurance. Prior to commencing work hereunder, 24 the Consultant shall provide the City with proof of insurance 25 providing and maintaining the coverages and endorsements set forth in 26 the Insurance Schedule attached hereto as Exhibit B and incorporated 27 by reference. Said proof of insurance shall also provide that said 2$ policy or policies shall not be canceled or materially reduced in I coverage without giving at least thirty (30) days prior written notice 2 to the City. Consultant shall not permit a subcontractor or vendor to 3 perform work on City premises unless and until a certificate of 4 insurance is obtained showing that such subcontractor or vendor has 5 worker's compensation coverage. 6 If consultant employs subcontractors as part of the services 7 rendered, consultant's protective coverage is required. 8 Consultant may include all subcontractors as insureds under 9 its own policy or shall furnish separate insurance for each 10 subcontractor, meeting the requirements set forth herein. 11 10. GENERAL PROVISIONS. 12 a. Independent Contractor. At all times during the 13 term of this Agreement, the Consultant shall be an independent 14 contractor and shall not be an employee of the City. The City shall 15 have the right to control the Consultant only insofar as the results 16 of the Consultant's services rendered pursuant to this Agreement; 17 however, the City shall not have the right to control the means by 18 which the Consultant accomplishes services rendered pursuant to the 19 Agreement except to the extent that such services involve the use of 20 City property or Confidential Information. 21 b. Consultant Not Agent. Except as the City may 22 specify in writing, the Consultant shall have no authority, express or 23 implied, to act on behalf of the City in any capacity whatsoever as an 24 agent. The Consultant shall have no authority, expressed or implied, 25 pursuant to this Agreement to bind the City to any obligation 26 whatsoever. 27 c. Assignment Prohibited. Consultant may not assign 28 any right or obligation of this Agreement except with the express -7- i I written consent of the City. Any other attempted or purported 2 assignment of any right or obligation pursuant to this Agreement shall 3 be void and of no effect. 4 "d. Termination. This Agreement may be terminated by 5 the City on fifteen (15) days written notice to the Consultant. The 6 effective date of cancellation shall be after the 30th day after said 7 written notice. The Consultant shall be entitled to the compensation 8 earned prior to the date of the termination notice, computed on an 9 hourly basis up to and including that date, plus compensation for 10 authorized work performed during the fifteen -day notice period. 11 e. Notices. Any and all notices, demands, invoices, 12 and written communications between the parties shall be addressed to 13 the parties as follows: 14 CITY: City of Vernon 15 Attn: Bruce V. Malkenhorst, Jr. Acting City Clerk 16 4305 Santa Fe Avenue Vernon, CA 90058-0805 17 CONSULTANT: SKS Professional Services, Inc. 18 Attn: David L. Davis 27393 Ynez Road, Suite 160 19 Temecula, CA 92591 20 Any such notices, demands, invoices and written 21 communications shall be (i) hand delivered, (ii) sent by telecopy and 22 mail, or (iii) sent by mail. Mail shall be conclusively deemed to y 23 have been received by.the addressee five (5) days after the deposit 24 thereof in the United States Mail, postage prepaid and properly 251 addressed as noted above. 261 f. Entire Agreement. This Agreement supersedes any 27 and all other agreements, either oral or in writing, between the 28 parties with respect to the subject matter herein. Each party to this I Agreement acknowledges that no representations have been made by any 2 party which are not embodied herein and that no other agreement, 3 statement or promise not contained in this Agreement shall be valid 4 and binding. Any modification of this Agreement will be effective 5 only if it is in writing and signed by the parties. 61 g. Benefit of Agreement. This Agreement shall bind 7 and benefit the parties hereto and their heirs, successors, and 8 permitted assigns. 9 h. Governing Law. This Agreement shall be governed 10 by and construed and enforced in accordance with the laws of the State 11 of California. 12 i. Amendments. This Agreement may be modified or 13 amended only by a written document executed by both Consultant and 14 City and approved as to form by the City Attorney. 15 j. Forum Selection. Any action brought relating to 16 this Agreement shall be brought and held exclusively in a State Court 17 in the County of Los Angeles, California. 18 k. Recitals. All recitals are incorporated by 19 reference. R 20 1. Waiver. Any waiver at any time by either party 21 of its rights with respect to a default under this Agreement, or with 22 respect to any other matters arising in connection with this 23 Agreement, shall not be deemed a waiver with respect to subsequent 24 default or other matter. 251 M. Force Majeure. Neither party shall be considered 26 to be in default in any of its obligations under this Agreement when a 27 failure of performance shall be due to an uncontrollable force. The 28 terms "uncontrollable force" shall mean any cause beyond the control I of the party affected, including, but not limited to, flood, 2 earthquake, storm, fire, lightening, epidemic, war, riot, civil 3 disturbance or disobedience, labor dispute, labor material shortage, 4 sabotage, federal, state, or municipal action, statute, ordinance, or 5 regulation, embargoes or the United States Government or any other 6 government, which by exercise of due diligence such party could not 7 reasonably have been expected to avoid and by exercise of due 8 diligence has been unable to overcome. Either party rendered unable 9 to fulfill any of its obligations under this Agreement by reason of an 10 uncontrollable force, shall give written notice within five (5) 11 business days of such fact to the other party and shall exercise due 12 diligence to remove such inability with all reasonable dispatch. 13 n. Warranty. Consultant warrants that the services 14 to be rendered pursuant to this Agreement shall be performed in 15 accordance with the standards customarily provided by an experienced 16 and competent professional organization rendering the same or similar 17 services. 18 o. Attorneys Fees. In the event that it becomes 19 necessary for either party to this Agreement to enforce any of the 20 provisions of this Agreement, the parties agree that a court of 21 competent jurisdiction may determine and fix reasonable attorney's 22 fees to be paid to the successful litigant. 23 p. Arbitration. The parties agree that any and all 241 disputes arising out of or in relation to this Contract, including 25 without limitation any action in tort, shall be resolved exclusively, 26 finally and conclusively by arbitration in Los Angeles County, 27 California under the auspices of and pursuant to the rules of the 28 Judicial Arbitration & Mediation Services Inc. (JAMS). Each party -10- 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 29 will select an arbitrator. Those two arbitrators will then select a third. The three -member panel will make the final decision. All decisions of the arbitrators shall be in writing, and the arbitrators shall provide written reasons for their decision. The arbitration decision shall be final and binding on the parties. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award or to obtain injunctive relief. The exclusive jurisdiction and venue for any such action shall be the Superior Court of California, Los Angeles County. Any and all contracts between Consultant and any subcontractor relating to this Agreement shall include the same arbitration clause. -11- I IN WITNESS WHEREOF, the City and the Consultant have 2 executed this Agreement by and through their authorized officers as of 3 the date first hereinabove set forth. 4 5 6 CITY OF VERNON 7 By. LEONIS C. MALBURG, Mayor 8 9 ATTEST: 10 11 BRUCE V. MALKENHORST, JR. Acting City Clerk 12 13 1411 APPROVED AS TO FORM: 15 ERIC T. FRESCH, City Attorney 16 17 SKS Professional Services, Inc., 18 dba MSW Consultants f 19 By: 20 Name: 21 22 Title: 23 By 24 Name: 25 Title: 26 27 28 -12- I EXHIBIT A May 24, 2006 Mr. Lewis Pozzebon Director/Health Officer 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 (City). 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, 2007, and 2008. BACKGROUND MSW Consultants and its subcontractor, E. Tseng & Associates, have been providing solid waste consulting services to the City for the last six years. In the course of our work, we have recovered over $30,000 in underpaid franchise fees, and re -assigned several thousand tons of solid waste that was initially attributed to the City of Vernon in the Disposal Reporting System (DRS). As a result of these efforts, the tons being reported at the landfill as originating in Vernon, are more accurate today than the in the early years of the program. Additionally, we have been available to provide advice on regulatory compliance, and assist in other special projects related to solid waste. E. Tseng & Associates has provided the businesses in Vernon with over 700 ort site waste assessments. These waste assessments have helped to establish numerous business -specific recycling programs, enabled the City to more accurately measure its total amount of waste generation, and resulted in several Vernon businesses being 27393 YNEZ ROAD, SurrE 160,TEMECULA, CALIFORNM 92591 951.694.4001 951.694.9001(FAX) Mr. Lewis Pozzebon May 24, 2006 Page 2 of 9 recognized by the California Integrated Waste Management Board (CIWMB) for their achievements in waste reduction. As a result of the recycling efforts of Vernon businesses, the City has been able to consistently achieve waste diversion rates that exceed the 50% required by the State. We also recently assisted in conducting the City's own Solid Waste Alternatives Program (SWAP), which identified and recognized over 50 Vernon businesses with exemplary waste diversion and recycling practices. �� • ' ��sfL•��s� 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 scope of work described below, and shown in the attached Exhibits 1 and 2. Task 1— AB 939 Compliance Subtask 1.1— Prepare AB 939 Annual Reports MSW Consultants and E. Tseng and Associates will continue to prepare the AB 939 Annual Report through the CIWMB electronic annual report system, and calculate the diversion rate with the modified disposal correction. In addition to filing the Annual Report, we will prepare related documents and answer CIWMB inquires related to the Biennial Review. We will coordinate with the City and attend any meetings that may be required by the CIWMB, or its Office of Local Assistance (OLA). This will also include continuing to update the required environmental justice analysis, which is now required by the CIWMB. Mr. Lewis Pozzebon May 24, 2006 Page 3 of 9 Subtask 1.2 - Provide Technical Recycling Assistance to Businesses E. Tseng and Associates will continue to provide business waste reduction and recycling technical assistance to approximately 100 businesses per year. Our recycling specialists will provide business -specific literature and recycling resource guides. Our approach will conform to the protocols and standards of the CWMB, and the Los Angeles County Department of Public Works Smart Business Program. As always, we will treat the business data with the utmost confidentiality. Depending upon regulatory and market factors, we may focus our efforts on specific business sectors, or particular material types. Subtask 1.3 - Construction and Demolition Waste Reduction and Recycling Program E. Tseng and Associates will continue to work with selected construction projects targeted by the City of Vernon to assist contractors to recycle as much as reasonably possible. This will entail identifying markets for recyclable materials, and documenting the type and amount of recycled material. The documentation will be retained to demonstrate the ongoing implementation of the City's C&D waste diversion program. Subtask 1.4 -Assist with 2007 SWAP Awards Program We will again assist the City in conducting its own SWAP award program with the award ceremony tentatively scheduled to be held in the fall or winter of 2007. We will assist with the planning and outreach for the program, identify businesses with exemplary waste diversion programs to be recognized, and assist the City in preparing for the award ceremony. iN''SUZTA'T` SOLID WASTE CONSULTANTS TO LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 4 of 9 Subtask 1.5 -Assist in Developing New Waste Diversion Programs We will seek to develop new or expanded waste diversion programs. For example, in coordination with the City, and possibly in partnership with one or more of the City's haulers, we may assist the City in developing a collection program for waste textiles, or other materials, that are now discarded and landfilled. In support of this effort, we will seek to develop market contacts for these materials in Asia. We will also propose to the OLA and/or the CIWMB that it develop a grant program for textile recycling. If the CIWMB were to develop such a program, we would seek grant funding for the City. As another example, we may assist the City in developing recycling rebate programs that create economic incentives for haulers to collect and divert materials that are now being landfilled. We will coordinate our efforts with the City prior to performing these tasks. Subtask 1.6 - Perform Other Regulatory Compliance or Solid Waste -related Tasks We will assist the City in performing various regulatory compliance tasks and/or other tasks related to solid waste management. For example, we may perform an informal update the City's Source Reduction and Recycling Element (SRRE) through the Annual Report process. We may also assist the City in complying with any new regulations, or respond to any inquiries from other agencies (e.g., Gateway Cities, etc.). If needed, we may also assist the City with any modifications to the non-exclusive franchise fee system. We will perform these types of tasks as requested by the City, and according to the budgeted hours shown in Exhibits 1 and 2. CONSULTANTS S OUD WASTE CONSULTANTS To LocAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 5 of 9 Task 2 — Review Franchise Fee Payments and Reported Tons Task 2.1— Perform On -site reviews of 23 Franchised Haulers We will contact and visit each of the City's 23 franchised haulers. We will, on a sample basis, review the support for the gross receipts and tonnage they report to the City. 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. 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 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., gross receipts per ton, 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 support our findings, and document the work we perform. We will prepare a brief summary report for each of the reviews we perform. The summary reports will describe the work we performed, our findings, and our recommendations. SOLID WASTE CONSULTANTS TO LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 6 of 9 Subtask 2.2 — Compare Tonnage and Resolve Discrepancies We will obtain disposal tonnage reports 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, we will compare the tonnage on the landfill reports to the tonnage they have reported to the City. We will resolve any significant tonnage 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 increase the likelihood that the City will meet or exceed the State's mandated 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 an opinion. PROJECT TEAM MSW Consultants specializes in providing solid waste consulting service to local governments. For purposes of this engagement, SKS Professional Services, Inc., doing business as MSW Consultants, will serve as the prime contractor to the City. Dr. C�I�IUL'T S SOLID WASTE CONSULTANTS TO FOCAL GOvERNMHNT Mr. Lewis Pozzebon May 24, 2006 Page 7 of 9 Eugene Tseng of Eugene Tseng & Associates, will serve as subcontractor to SKS Professional Services. Our team members are skilled professionals with extensive experience in the field of solid waste management. 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 20 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 a member of the Board of Directors of the Southern California Waste Management Forum (SCWMF). Examples of Southern California solid waste clients that Mr. Davis has served include the cities of Azusa, Baldwin Park, Brea, Hawthorne, Imperial Beach, La Cafiada/Flintridge, Lompoc, Ontario, Orange, San Bernardino, San Buenaventura, and Santa Barbara. 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 perform the reconciliation of the haulers reported tonnage to the landfill tonnage data. Mr. Lewis Pozzebon May 24, 2006 Page 8 of 9 Dr. Eugene Tseng— Project Engineer Dr. Tseng is an environmental engineer and a licensed California attorney specializing in environmental law. He has over 33 years of engineering experience in the municipal solid waste and hazardous waste management fields. Dr. Tseng is primarily involved with assisting cities with AB 939 compliance. 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 toward 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. Betsy Stoeven — Waste Diversion Technician and Outreach Coordinator Ms. Betsy Stoeven is a waste diversion and recycling specialist with over ten years of experience in designing and implementing commercial and industrial waste diversion programs. In addition to extensive experience in providing technical recycling assistance to businesses, Ms. Stoeven's experience includes conducting waste surveys, preparing AB 939 Annual Reports for the CIWMB, performing waste generation and composition studies, and analyzing and developing markets for recyclable materials. Ms. Stoeven has a B. A. in Political Science from Stephens College in Columbia, Missouri, and has completed UCLA's Solid Waste Management Certification Program. Ms. Stoeven will serve as Waste Diversion Technician and Outreach Coordinator. She will supervise and perform the business waste assessments, assist in preparing the City's Annual Report, identify candidates for the City's SWAP program, and perform other solid waste tasks related to regulatory compliance and waste diversion. Mr. Lewis Pozzebon May 24, 2006 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 $127,000 in fiscal year 2007, and $133,000 in fiscal year 2008. 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 perform those tasks on a time and materials basis at the hourly rates shown in Exhibits 1 and 2. Prior to performing any tasks outside the Scope of Work, we will obtain written approval from the City. We will submit invoices each month with a summary description of the work we performed and a list of the hours worked by each of our 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. 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 951/694-4001. Sincerely yours, David L. Davis, CMA Principal Attachments Exhibits 1 and 2 ! li k F N 1 I P, va N N ti � O O .0 O O N 0, id � p O H M W ti I I O sM O 0% N .D pppppp N a0 O O O O N N I O OfA I N N O H F Vi K3 w W O ri 64 NON n O O N NON O O a N NON N N - O V� d � C. 10 ID F N A C] m ui m C Q' a. ° �. o v� O y x w � y � x w y. k] N W GGi • M N !V ey N ol N N Vi FCC 4 W f�R M N pppp OO O O W 00 O 000 00(A 00 ti O V' O 12, `"1 I PP44 H O N 00 O O O O 00 ON N O O 44 O C N F x� C"ts�l M �N-+ oo O oo O fA n O C O y � .'0- O O .'Di .tea ti 00 N u3 M� CD C:lN N NN C> r oNp Vt ift po p in to O N W� ems-+ ��+ N N co ti N I N N N I Go 3 R a Q di N y � � R PA v id N O ° g ° 3 3 p y 'L7 n O V] xi W v°i DO "�'" w N t�' A J, Wcq F N fV a x ti N E:HIBIT B 1! 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT B INSURANCE SCHEDULE Consultant shall provide proof of insurance, including but not limited to, a standard original certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): I. Coverage and Limits Bodily Injury Property Damage Hazards Each Person Each Accident Each Accident Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Workers' Compensation $ Statutory Employers' Liability $1,000,000 per employer II. Liabili General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (If Applicable) $1,0001000 $2,000,000 $1,000,000 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 Contractual Liability $1,000,000 $2,000,000 $1,000,000 Professional Liability $1,000,000 $1,000,000 $1,000,000 a . The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 1. An original endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement and specifying the activities covered. 4. Such other endorsement as may be required by City. 5. A copy of your general and professional insurance policy declarations page. 6. A copy of schedule of forms of endorsement. b. In addition to the above, the Consultant shall provide such further proof of insurance documentation as the City deems necessary. 4 RISK MANAGEMENT OFFICE INTER -DEPARTMENT MEMORANDUM DATE: August 7, 2006 TO: Nelly Giron Deputy City Clerk FROM: Willard G. Yamaguchi Chief Deputy City Attorney/Acting Risk Manager RE: SKS Professional Services, Inc./MSW Consultants Please be advised that the above referenced has provided acceptable insurance coverage. Attached for your retention are original insurance certificates and related policies, declarations and/or endorsements for the above -referenced insured that were issued by: • The Hartford (General Liability) • Progressive Casualty (Automobile Liability) • Hudson Insurance Company (Professional Liability) • State Compensation Insurance Fund (Workers Compensation) This concerns Resolution No. 9082, Agreement File No. 06-079. WY/kr c: Lewis Pozzebon ACURD_ CERTIFICATE OF LIABILITY INSURANCE OP MO D MSWCO-i DATE07/1 9/0 07/19j06 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Strachota Insurance Agency Inc California License #0249673 43500 Ridge Park Drive #203 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Temecula CA 92590 Phone:951-676-2229 rax:951-676-7391 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A: The Hartford INSURER B: INSURER G MS" W Consultants 27393 Tnes Rd. #160 Temecula CA 925 1 INSURER D: INSURER E: v THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TEF40 OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE POLICY NUMBER DATE (MMIDDIM DATE (MMVDWYY) LIMITS A GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS MADE OCCUR 72SBANM438 06/01/06 06/01/07 EACH OCCURRENCE $ 1000000 DAIWZE I W- PREMISES (Ee ocoxence) $ 300000 MED EXP (Any one person) $ 10000 PERSONAL &ADV INJURY $ 1000000 GENERAL AGGREGATE $ 2000000 GENIAGGREGATE LIMIT APPLIES PER: POLICY JPERCT M LOC PRODUCTS -COMPIOPAGG $ 2000000 C AUTOMOBILE LU161LITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS CA04578576-5 08/08/05 08/08/06 COMBINED SINGLE LIMIT (Eeaccident) $ +a+1,000,000 BODILY INJURY (Per person) $ X X BODILY INJURY (Per accident) $ X PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY AM( AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC AUTO ONLY: ACG $ $ EXCESSIUMBRELLA LIABILITY OCCUR CLAIMS MADE DEDUCTIBLE RETENTION $ EACH OCCURRENCE $ AGGREGATE $ s $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABLrtY ANY PROPRIETORIPARTNEWEXECUTIVE OFFICERMIEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below TORY LIMITS I lug _ E.L. EACH ACCIDENT $ E.L DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VE14CLES I EXCLUSIONS ADDED BY ENDORSEMEM I SPECIAL PROVISIONS Proof of insurance. *10 days for nonpayment of premium L.CR 1 irr-A 1 C nVLYCR City Of Vernon Attn: Risk Management 4305 S. Santa re Ave Vernon CA 90058 2512001=1 CITYVER I SHOULD ANY OF THE ABOVE DESCRIBED POLICES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE MWNG !lSURER VNLL ENDEAVOR TO MAIL 30 * DAYS YYRMEN NOTICE TO THE CERT]FICATE HOLDER NAMED TO THE LEFT, BUT FALURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABLITY OF ANY KIND UPON THE INStRiER, ITS AGENTS OR ACORD_ CERTIFICATE OF LIABILITY INSURANCE OP RCO D MSWCO-1 DATE(MMIDDlYYYY) 07/19/06 PRODUCER Strachota Insurance Agency Inc California License #0249673 43500 Ridge Park Drive #203 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Temecula CA 92590 Phone:951-676-2229 Fax:951-676-7391 INSURERS AFFORDING COVERAGE NAIL INSURED INSURER A. Hudson Insurance Company INSURER B: SAS Professional Services, Inc DBA: MSW Consultants 27393 Ynes Rd. #160 Temecula CA 92591 INSURERC: INSURER D: INSURER E: rnvGoer_Fc THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE 919MED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE POLICY NUMBER DATE MMIDDIYY) POLICY FXPWATION DATE (MMfDDTM Lon GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY X CLAIMS MADE OCCUR EACH OCCURRENCE $ PREMISES S((En cu<ence) $ MED EXP (Any one Pin) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEHL AGGREGATE LIMIT APPLIES PER: POLICY ACTT El LOC PRODUCTS -COMP/OPAGG $ AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Es accident) $ BODILY INJURY (Per Person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) GARAGE LIABLITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC AUTO ONLY: AGG $ $ EXCESSIUMBREILA LIABILITY OCCUR CLAIMS MADE DEDUCTIBLE RETENTION $ EACH OCCURRENCE $ AGGREGATE $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICERA ,EMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below I TORY LIMITS ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ EL. DISEASE - POLICY LIMIT $ A OTHER Professional Liab r=6107426 06/12/06 06/12/07 Claims 1000000 Made form DESCRIPTION OF opem*n I IACA 1 VEHICLES T EXC USIO IS ADDED BY ENDORSEMENT r SPECIAL PRDVISIONS Solid waste management consultant. Provides management consulting services to clients in areas of rate setting, service procurement, facility ** **10 days notice for nonpayment &COVICv Are unr nwo t`AMCFI 1 ATInIM CITYVER SHOULD ANY OF THE ABOVE DESCRIBED POLICES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSLIMG IINSLIRER WILL ENDEAVOR TO MAIL 30 * DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL City Of Vernon IMPOSE NO OBLIGATION OR LIABI.nY OF ANY KIND UPON THE INSURER, ITS AGENTS OR Attn: Risk Management 4305 S . Santa re Ave REPRESENTATIVES. REPRESENTATIVE Vernon CA 90058 ACORD 25 (2001=) es P%%,vfcv a Wnrvnr+� CERTHOLDER COPY SK STATE P.O. BOX 420807, SAN FRANCISCO,CA 94142-0807 COMPENSATION INSURANCE FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE ISSUE DATE: 07-27-2006 GROUP: POLICY NUMBER: 1576430-2006 CERTIFICATE ID: 18 CERTIFICATE EXPIRES: 06-28-2007 06-28-2006/06-28-2007 CITY OF VERNON SK 4305 S SANTA FIE AVE LOS ANGELES CA 90058-1714 This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon30 days advance written notice to the employer. We will also give you 30days advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of Insurance may be issued or to which it may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions, of such policy. THORIZED REPRESENTATI PRESIDENT EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: $1,000,000 PER OCCURRENCE. ENDORSEMENT N1600 - DAVID DAVIS PRESIDENT - EXCLUDED. ENDORSEMENT #1600 - CHRISTINA DAVIS SEC,TREAS - EXCLUDED. ENDORSEMENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 06-28-2001 IS ATTACHED TO AND FORMS A PART OF THIS POLICY. EMPLOYER SKS PROFESSIONAL SERVICES SK 27393 YNEZ RD STE 160 TEMECULA CA 92591 [B10,SK1 PRINTED : 07-27-2006 IREV.2-05) POLICY NUMBER: 72 SBA NU5438 F� THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - PERSON -ORGANIZATION CITY OF VERNON 4305 S SANTA PR AVE VERNON CA 90058 Farm IH 12 00 1185 T SEG. NO. 002 Printed in U.S.A. Page 001 Process Date: 0 8/ 0 3/ 0 6 Expiration Date: 0 6/ 01 / 0 7 UW COPY P1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGE This endorsement changes the policy effective on the Inception Date of the policy unless another date is indicated below: d Policy Number, 72 SBA NU5438 DX r- rn N COPY Named Insured and Mailing Address; SKS PROFESSIONAL SERVICES, INC o DBA MSW CONSULTANTS M 27393 YNEZ RD #160 G TEMECULA CA 92591 M sip Ln Policy Change Effective Date: 08/01/06 �Z N C- oPolicy Change Number: 002 Agent Name: STRACHOTA INSURANCE AGENCY/PHS Code: 185982 Effective hour is the some as stated in the Declarations Page of the Policy. POLICY CHANGES: ANY CHANGES IN YOUR PREMIUM WILL BE REFLECTED IN YOUR NEXT BILLING STATEMENT. THIS IS NOT A BILL. !ate NO PREMIUM DUE AS OF POLICY CHANGE EFFECTIVE DATE i� � FORM NUMBERS OF ENDORSEMENTS REVISED AT ENDORSEMENT ISSUE: IH12001185 ADDITIONAL INSURED - PERSON -ORGANIZATION s� T s_e ss� . i PRO RATA FACTOR: 0.833 THIS ENDORSEMENT DOES NOT CHANGE THE POLICY EXCEPT AS SHOWN. Form SS 121104 05 T Page 001 Process Date: 08 / 03 / 06 policy Effective Date: 08 / 01 / 06 Policy Expiration Date: 06/01 /07 UW COPY W. SPECTRUM POLICY DECLARATIONS (Continued) POLICY NUMBER; 72 SBA NU5438 BUSINESS LIABILITY LL48N Y AND MEDICAL EXPENSES MEDICAL EXPENSES - ANY ONE PERSON PERSONAL AND ADVERTISING INJURY DAMAGES TO PREMISES RENTED TO YOU ANY ONE PREMISES AGGREGATE LIMITS PRODUCTS -COMPLETED OPERATIONS FORM SS 05 09 GENERAL AGGREGATE LIMITS OF INSURANCE $1,000,000 $ 10,000 $1,000,000 $ 300,000 $2,000,000 $2,000,000 Form SS 00 021193 T Printed in U.S.A. (NS) Page 007 (CONTINUED ON NEXT PAGE) Process Date: 0 6 / 0 8 / 06 Policy Expiration Date: 06 / 01 / 07 Ii UDSON MSW USUR AN CE w Coverage Part Declarations Policy Number: FEC6107426 Coverage Parts Attached (indicated with °x'): Coverage Part Policy Type X Commercial General Liability Contractors Pollution Liability Professional Liability Occurrence For, Occurrence Form claims Made Form X X Limits of Insurance: Regardless of the number of Coverage Parts written under this policy or applicable to any one Occurrence, Claim, Wrongful Act or Pollution Condition the Limits of Insurance shown below apply once for the entire policy, and not separately for each Coverage Par Applicable to Contractors Pollution Liability Coverage Part: $ 1,000,000 Damages Limit for Each Occurrence, Claim or Pollution Condition $ 2,000,000 General Aggregate Limit $ 1,000,000 Claims Expense Limit for Each Claim $ 2,000,000 Claims Expense Aggregate Limit Applicable to Professional Liability Coverage Part: $ 1,000,000 Damages Limit for Each Occurrence, Wrongful Act or Claim $ 2,000,000 General Aggregate Limit $ 1,000,000 Claims Expense Limit for Each Claim $ 2,000,000 Claims Expense Aggregate Limit Applicable to Commercial General Liability $ 2,000,000 Coverage Part: General Aggregate Limit (Other Than Products -Completed Operations) $ 2,000,000 Products -Completed Operations Aggregate Limit $ 1,000,000 Personal and Advertising Injury Limit $ 1,000,000 Damages Limit for Each Occurrence or Claim $50,000 Fire Damage Limit (Any one Fire) $5,000 Medical Expense Limit (Any One Person) Deductible: Coverage Amount Type Commercial General Liability $2,500 See FEI-0104-317-E if CGL coverage applies Contractors Pollution Liability $2,500 per pollution condition Professional Liability $2,500 per wrongful act Retroactive Dates: Coverage Retroactive Date Commercial General Liability Not Applicable Contractors Pollution Liability Not Applicable Professional Liability 6/12/2003 Premium ueneauie: Estimated Annual Gross Receipts: $185,000 Rate: Flat Policy Period Minimum Earned Premium: Minimum $2,500 $625 & Deposit Premium: Form of Business: I X Corporation Joint Venture Individual Partnership Other FEI-0104-310-E PRODUCER'S FACT SHEET NAMED INSURED: SKS PROFESSIONAL SERVICES, INC DBA MSW CONSULTANTS POL #: 72 SBA NU5438 DX PRODUCER'S NAME: PRODUCER'S CODE: 185982 AGENT SALES STRACHOTA INSURANCE AGENCY/PHS POL EFF DATE: 06/01/06 POL EXP DATE: 06/01/07 DIRECT ACCOUNT BILL NUMBER - 11666744 TRANSACTION TYPE: NEW BUSINESS TOTAL ANNUAL PREMIUM: $760.00 COMMISSION BREAKDOWN ANNUAL PREMIUM COMMISSION PERCENTAGE SPECTRUM $760.00 18.0 TOTAL $760.00 FORM TITLE SS 00 01 04 93 POLICY FRONT COVER SS 00 02 11 93 DECLARATIONS SS 00 05 04 05 COMMON POLICY CONDITIONS SS 00 07 07 05 SPECIAL PROPERTY COVERAGE FORM SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM SS 84 01 07 05 STRETCH SUMMARY SS 01 21 08 97 CALIFORNIA CHANGES - CANCELLATION AND NONRENEWAL SS 04 08 07 05 STRETCH SS 04 19 07 05 BUSINESS INCOME EXTENSION FOR OFF -PREMISES UTILITY SERVICES SS 04 30 07 05 TRANSIT COVERAGE- PROPERTY IN THE CARE OF CARRIERS FOR HIRE SS 04 39 07 05 ACCOUNTS RECEIVABLE SS 04 41 07 05 COMPUTERS AND MEDIA SS 04 42 07 05 EMPLOYEE DISHONESTY COVERAGE SS 04 44 07 05 OUTDOOR SIGNS SS 04 45 07 05 PERSONAL PROPERTY OF OTHERS SS 04 46 07 05 TEMPERATURE CHANGE SS 04 47 07 05 VALUABLE PAPERS AND RECORDS SS 04 80 03 00 CRIME COMMON CONDITIONS AND EXCLUSIONS SS 04 86 03 00 FORGERY COVERAGE SS 40 18 07 05 OFF -PREMISES UTILITY SERVICES - DIRECT DAMAGE SS 40 93 07 05 LIMITED FUNGI, BACTERIA OR VIRUS COVERAGE SS 41 12 09 05 IDENTITY RECOVERY COVERAGE FOR BUSINESS OWNERS IH 10 01 09 86 PERILS SPECIFICALLY EXCEPTED SS 05 09 07 00 EXCLUSION - TESTING OR CONSULTING ERRORS AND OMISSIONS SS 05 47 09 01 EXCLUSION - NUCLEAR ENERGY LIABILITY 100722REVS DIRECT BILL INFORMATION G-3305-0 IMPORTANT NOTICE TO POLICYHOLDERS - TERRORISM RISK INSURANCE ACT OF 2002 SS 38 25 09 05 POLICYHOLDER NOTICE - IDENTITY RECOVERY COVERAGE SS 83 13 01 97 IMPORTANT NOTICE TO OUR POLICYHOLDERS PRODUCER'S FACT SHEET PAGE 1 06/08/06 72 SBA NU5438 DX (06/01/07) Best's Rating Center - Company Information for Hudson Insurance Company Page 1 of 2 Rating Center View Ratings: Financial Strength Issuer Credit Securities Advanced Sea�h Other Web Centel Rating Methodology industry Research Ratings Definitions ►1 Hudson Insurance Company Search Bestt ka- (a member of Fairta&FinancjaUVSA) Grqup) (v—�m securities for related_iss eery Assigned to companies that � ; A.MAest #: 03001 NAIC #: 25054 FEIN #: 13616MI have, in our opinion, an Press Releases excellent ability to meet their Address:17 State Street, 29th Floor Phone: 212-978-2800 ongoing obligations to RelatedProducts ► New York, NY 10004 Fax: 212-344-2973 policyholders. Industry S Reaiond Web: www.hudsoninsgroup.com Country Risk How to Get Rated Cortad an Ar t Best's Ratings Financial Strength Ratings view Definitions Rating: A (Excellent) Affiliation Code: g (Group) Financial Size Category: XV ($2 billion or more) Outlook: Stable Action: Affirmed Effective Date: April 03, 2006 X Denotes Under Review Best's Ratin s Issuer Credit Ratings view Definitio Long-Term:a Outlook: Stable Action: Affirmed Date: April 03, 2006 Reports and News Visit our NewsRoom for the latest news and Dress releases for this company and its A.M. Best Grou f Besirs Company Report - includes Best's Financial Strength Rating and rationale along will E analytical commentary, detailed business overview and key financial data. Report Revision Date: 04/03/2006 (represents the latest significant change). Historical Reports are available in Best's Company Report Archive. Best's Executive Summary Reports (Financial overview) - available in three versions, thi style reports feature balance sheet, income statement, key financial performance tests incluc liquidity and reserve analysis. Data Status: 2006 Best's Statement File - PIC, US. Contains data compiled as of 6/5/2006 Checked). • Single Company - five years of financial data specifically on this company. • Comparison - side -by -side financial analysis of this company with a peer group of up to companies you select. • Com op site - evaluate this company's financials against a peer group composite. Report average and total composite of your selected peer group. Note: Adobe Reader is required to view the reports listed above. This software is available It Systems inc. An Excel export option is also available once the report has been opened usinc BestKRatanq Guide Presentation Report - includes Best's Financial Strength Rating as provided in Best's Key Rating Guide products. Data Status: 2005 Financial Data (Quaiity Cross Checked). Financial and Analytical Products Best's Pro perty/CasualtXCenter - Premium Data & Re -pods Best's Key_Rating_Guide_- P/C -US & Canada Best's Statement File __P/C US Best's Statement File Global http://www3.ambest.com/ratings/FullProfile.asp?B1=0&AMBNum=3081 &A1tSrc=1 &Alt... 7/19/2006 Besfs Rating Center - Company Information for Hartford Accident and Indemnity Compa... Page 1 of 2 Rates Center Rating Methodology Industry Research Ratings Definitions ► Search 6estS Rates Press Releases Related Products ► Industry 8 Regional Country Risk How+ to Get Rated Contact an Analyst View Ratings: Financial Strength Issuer Credit Securities Advanced earth Other Web Centel Hartford Accident and Indemnity Company (e member of Hartford Insuran roue) Assigned to companies that A.M.Best #: 02230 NAIL #: 22367 FEIN #: 060383030 have, in our opinion, a superior ability to meet their ongoing Address: Hartford Plaza Phone: 860-547-5000 obligations to policyholders Hartford, CT 06115 Fax: 860-547-6343 Web: www.thehartford.com Best's Ratings Financial Strength Ratings View Definitions Rating: A+ (Superior) Affiliation Code: p (Pooled) Financial Size Category: XV ($2 billion or more) Outlook: Stable Action: Affirmed Effective Date: June 28, 2006 * Denotes Under Review Best's Ratings Issuer Credit Ratings view -De fInKlo Long-Term:aa- Outlook: Stable Action: Affirmed Date: June 28, 2006 Reports and News Visit our NewsRoom for the latest news and press releases for this company and its A.M. Best Grour Best's Company Repo - includes Best's Financial Strength Rating and rationale along wit! analytical commentary, detailed business overview and key financial data. + Report Revision Date: 06/28/2006 (represents the latest significant change). Historical Reports are available in Best's Company Report Archive. Best's Executive Summary Reports (Financial Overview) - available in three versions, tfv t style reports feature balance sheet, income statement, key financial performance tests inciuc liquidity and reserve analysis. Data Status: 2006 Best's Statement File - P/C, US. Contains data compiled as of 6/5/2006 Checked). • Single Company - five years of financial data specifically on this Company. • Comparison - side -by -side financial analysis of this company with a peer group of up to companies you select. • Composite- evaluate this company's financials against a peer group composite. Report average and total composite of your selected peer group. Note: Adobe Reader is required to view the reports listed above. This software is available fi Systems Inc. An Excel export option is also available once the report has been opened usinc IFBests Key Rating Guide Presentation Report - includes Best's Financial Strength Rating Y as provided in Bests Key Rating Guide products. Data Status: 2005 Financial Data (Quality cross Checked). Financial and Analytical Products Best's Property/Casuallt Center- _Premium _Data & Reports Best's Key -Rating Guide - P/C US_& Canada Best's Statement File _P/C, US Best's Statement File - Global http://www3.arnbest.com/ratings/FullProfile.asp?B1=0&AMBNum=2230&A1tSrc=1 &Alt... 7/19/2006 CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman 4305 Santa Fe Avenue, Vernon, California 90058 telephone (323) 583-8811 August 17, 2006 SKS Professional Services, Inc. dba MSW Consultants Attn: David L. Davis 27393 Ynez Road, Suite 160 Temecula, CA 92591 Re: Agreement for Professional Consulting Services Dear Mr. Davis: SOL BENUDIZ Police Chief MARK C. WHITWORTH Acting Fire Chief LEWIS J. POZZEBON Director of Environmental Health S. KEVIN WILSON Director of Community Services SHARON L. DUCKWORTH Acting City Treasurer The insurance requirements have been met. Transmitted herewith is a fully executed agreement approved by City Council on June 21, 2006, through Resolution No. 9082. If you have any questions regarding this matter, please call Mr. Lewis Pozzebon at 323/583-8811 ext. 229. NG:dr cc: Lewis Pozzebon Dolores Jaunzemis Resolution No. 9082 Agreement File No. 06-079 Very truly yours, welly uVrop Deputy City Clerk T'Nc[uAvelo InbuArial CITY COUNCIL. LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman 4305 Santa Fe Avenue, Vernon, California 90058 telephone (323) 583-8811 SKS Professional Services, Attn: David L. Davis 27393 Ynez Road, Suite 160 Temecula, CA 92591 July 11, 2006 Inc., dba MSW Consultants Re: Consulting Services Agreement Dear Mr. Davis: SOL BENUDIZ Police Chief MARK C. WHITWORTH Acting Fire Chief LEWIS J. POZZEBON Director of Environmental Health S. KEVIN WILSON Director of Community Services SHARON L. DUCKWORTH Acting City Treasurer In accordance with Section 9.0 of said agreement, you are to furnish the City with proof of insurance as set forth in the Insurance Schedule, Exhibit "B" of the same. Please submit your insurance documents to Willard Yamaguchi, Acting Risk Manager, for review and approval. Upon approval of said documentation, this office will forward to you a fully executed duplicate original agreement. If you have any questions, please contact Willard Yamaguchi at 323/583-8811 ext. 175. NG:dr c: Willard Yamaguchi Lewis Pozzebon Resolution No. 9082 Agreement File No. 06-079 Very truly yours, elly..G n Deputy City Clerk 'Exc(uglucio W009041 i 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 as 5 the original hereof for all purposes, as of this 21st day of June, 6 2006, 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 231 consultant to (i) provide assistance to the City in complying with AB 24 939.; (ii) provide franchise fee review services; and (iii) provide 25 related solid waste consulting tasks; and 26 WHEREAS, the Consultant submitted a proposal to City dated 27 May 24, 2006 (the "Proposal") which includes a description of proposed 28 services and a cost proposal; and a I WHEREAS, Consultant represents that it is qualified to 2 perform such services under this Consulting Services Agreement 3 (hereinafter "Agreement"); and 4 WHEREAS, Consultant is willing to render such professional 5 services as hereinafter defined. 6 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 7 FORTH HEREIN: 8 1. SCOPE OF SERVICES. 9 The Consultant shall perform the services outlined in the 10 Proposal, which is attached hereto as Exhibit A and incorporated by 11 reference. The scope of services under this Agreement include Task 1 12 - AB 939 Compliance and Task 2 - Review Franchise Fee Payments and 13 Reported Tons. Within these two general tasks, the following subtasks 14 are to be performed by Consultant: prepare the City's AB 939 Annual 15 Reports to the CIWMB; provide technical recycling assistance to 16 businesses; assist in the implementation of a construction and 17 demolition waste reduction and recycling program; assist in conducting 18 SWAP and/or other award programs; organize and co -host awards 19 ceremony; assist in developing new waste diversion programs; perform 20 other regulatory compliance or solid waste related task; perform on- 21 site reviews of franchised haulers each fiscal year; and compare 22 tonnage and resolve discrepancies. It is understood and agreed that 23 in the event of a conflict between the Proposal and this Agreement, 24 the terms,of this Agreement shall prevail. 25 2. USE OF SUBCONTRACTORS 26 It is understood and agreed that Consultant will subcontract 27 a portion of the work to Eugene Tseng of Eugene Tseng & Associates, 28 but that Consultant is solely responsible for the performance of this -2- I Agreement, including performance of any tasks by said subcontractors. 2 The Consultant may not engage any other subcontractors to complete the 3 work described in the Scope of Services without the approval of the 4 City. S 3. TIME OF PERFORMANCE. 6 Consultant's services herewith shall commence upon signing 71 of the Agreement and shall be completed by June 30, 2008, unless 8 terminated or extended. 9 4. COMPENSATION. 10 a. Fee for Services for Fiscal Year 2006-07. The 11 City shall compensate the Consultant pursuant to the rates and costs 12 as set forth in the Proposal for the services performed, in a total 131 sum not to exceed $127,000.00. 14 b. Fee for Services for Fiscal Year 2007-08. The 15 City shall compensate the Consultant pursuant to the rates and costs 16 as set forth in the Proposal for the services performed, in a total 171 sum not to exceed $133,000.00. 18 C. Expenses. Expenses may only be billed if they 19 have been approved in writing, in advance, by the Acting City Clerk. 20 5. METHOD OF PAYMENT. 211 Within thirty (30) days after the last day of any month in 22 which services have been performed or costs incurred hereunder, the 231 Consultant shall submit an invoice to the City stating the amount due 24 the Consultant. Invoices shall contain an itemization of services 25 rendered, directly related job expenses and subcontract charges 26 incurred by the Consultant and for which compensation is due. 27 Consultant shall be responsible for paying any subcontractors used in 28 the performance of this Agreement. Subcontractors shall not bill the -3- 0 I City directly. 2 Payment of the invoice shall be made after acceptance and 3 approval by the City within thirty (30) days of receipt. The City's 4 approval of the invoice shall not be unreasonably withheld. 5 6. CHANGES AND EXTRA SERVICES. 6 The City reserves the right to request changes in the 7 services to be performed by the Consultant. All such changes shall be 8 incorporated in written change orders executed by the City and the 9 Consultant which shall specify the changes ordered and the adjustment 10 of compensation and completion time required thereof. 11 Any services added to the scope of this Agreement by a 12 change order shall be executed under all applicable conditions of this 13 Agreement. No claim for additional compensation or extension of time 14 shall be recognized unless contained in a duly executed change order. 15 7. PRODUCTS OF CONSULTING. 16 All documents, data, studies, surveys, drawings, maps, 17 models, photographs and reports prepared by Consultant under this 18 Agreement, with the exception of confidential information provided by 19 businesses located in the City, shall be considered the property of 20 City. Said documents and materials shall be delivered to City by 21 Consultant as they are generated; however, Consultant may take and 22 retain copies of said documents and materials as desired. 23 8. CONFIDENTIAL INFORMATION. 24 a. Access to Confidential Information. City may 25 provide Consultant and/or its subcontractors with, or allow Consultant 26 access to, certain information deemed relevant by City, not available 27 to the public concerning City, or businesses located in City. The 2$ information may include company information, taxes, sales, value of �C I assets, utility usage or other such information. All such information 2 shall be known as "Confidential Information" and shall not be used to 3 circumvent the responsibility of either party to this Agreement. 4 b. No Disclosure. Except as expressly permitted, 51 Consultant and/or its subcontractors shall not disclose, permit the 6 disclosure of, release, disseminate, or transfer, whether orally or by 7 any other means, any part of such Confidential Information to any 8 other person or entity, whether corporate, governmental, or 9 individual, without the express prior written consent of an authorized 10 representative of City. Consultant and/or its subcontractors shall 11 return any and all written Confidential Information and all copies 12 made of such items to City upon City's written request, but in any 13 event not later than the date that Consultant has performed all 14 services to be performed pursuant to this Agreement. Consultant 15 hereby agrees that such Confidential Information and any documents 16 provided may be used by Consultant and/or its subcontractors only as 17 authorized by City. Consultant's contracts with subcontractors shall 18 include provisions that bind the subcontractors to this non -disclosure 19 requirement. Consultant shall take reasonable measures to avoid any 20 disclosure of any such Confidential Information to any unauthorized 21 person. 22 c. Court Ordered Disclosure. Consultant shall 23 immediately notify the City of any court order or subpoena or other 24 directive of a court, administrative agency, quasi-judicial body or 251 arbitration panel requiring disclosure of Confidential Information, 26 and shall cooperate with legal counsel in the appeal or challenge of 271 any such order or subpoena and City shall reimburse Consultant for 28 such assistance on a time and materials basis. Consultant may only -5- I disclose Confidential Information required to be disclosed pursuant to 2 a valid court order or subpoena after legal counsel has exhausted any 3 lawful and timely appeal or challenge, to the extent that such appeal 4 or challenge does not hinder Consultant from its obligations under $ such court order or subpoena. 6 d. Remedies. In addition to any other remedies that 7 it may have at law or in equity, City shall be entitled to a temporary 8 and permanent injunction by a court of competent jurisdiction against 9 any breach or threatened breach of the Confidential Information 10 provisions of this Agreement. Consultant acknowledges that in case of 11 such breach or threatened breach of said provisions, City would have 12 no adequate remedy at law. 13 9. INDEMNITY AND INSURANCE. 14 a. Indemnification. Consultant shall indemnify, 15 defend, protect and hold harmless the City and its officers, agents 16 and employees, free from and against any and all claims, demands, 17 losses, damages, liabilities, fines, charges, penalties, orders, 18 judgments and all costs and expenses incurred in connection therewith, 19 including reasonable attorney's fees and costs of defense arising out 20 of the services performed under this Agreement, except to the extent 21 arising from or caused by the sole negligence or willful misconduct of 22 the City, its officers, agents or employees. 23 b. Insurance. Prior to commencing work hereunder, 24 the Consultant.shall provide the City with proof of insurance 25 providing and maintaining the coverages and endorsements set forth in 26 the Insurance Schedule attached hereto as Exhibit B and incorporated 27 by reference. Said proof of insurance shall also provide that said 28 policy or policies shall not be canceled or materially reduced in I coverage without giving at least thirty (30) days prior written notice 2 to the City. Consultant shall not permit a subcontractor or vendor to 3 perform work on City premises unless and until a certificate of 4 insurance is obtained showing that such subcontractor or vendor has 5 worker's compensation coverage. 6 If consultant employs subcontractors as part of the services 7 rendered, consultant's protective coverage is required. $ Consultant may include all subcontractors as insureds under 9 its own policy or shall furnish separate insurance for each 10 subcontractor, meeting the requirements set forth herein. 11 10. GENERAL PROVISIONS. 12 a. Independent Contractor. At all times during the 131 term of this Agreement, the Consultant shall be an independent 14 contractor and shall not be an employee of the City. The City shall 15 have the right to control the Consultant only insofar as the results 16 of the Consultant's services rendered pursuant to this Agreement; 17 however, the City shall not have the right to control the means by 18 which the Consultant accomplishes services rendered pursuant to the 19 Agreement except to the extent that such services involve the use of 20 City property or Confidential Information. 21 b. Consultant Not Agent. Except as the City may 22 specify in writing, the Consultant shall have no authority, express or 23 implied, to act on behalf of the City in any capacity whatsoever as an 24 agent. The Consultant shall have no authority, expressed or. implied, 25 pursuant to this Agreement to bind the City to any obligation 26 whatsoever. 27 C. Assignment Prohibited. Consultant may not assign 28any right or obligation of this Agreement except with the express -7- I written consent of the City. Any other attempted or purported 2 assignment of any right or obligation pursuant to this Agreement shall 3 be void and of no effect. 4 d. Termination. This Agreement may be terminated by 5 the City on fifteen (15) days written notice to the Consultant. The 6 effective date of cancellation shall be after the 30th day after said 7 written notice. The Consultant shall be entitled to the compensation 81 earned prior to the date of the termination notice, computed on an 9 hourly basis up to and including that date, plus compensation for 10 authorized work performed during the fifteen -day notice period. 11 e. Notices. Any and all notices, demands, invoices, 12 and written communications between the parties shall be addressed to 13 the parties as follows: 14 CITY: City of Vernon 15 Attn: Bruce V. Malkenhorst, Jr. Acting City Clerk 16 4305 Santa Fe Avenue Vernon, CA 90058-0805 17 CONSULTANT: SKS Professional Services, Inc. 18 Attn: David L. Davis 27393 Ynez Road, Suite 160 19 Temecula, CA 92591 20 Any such notices, demands, invoices and written 21 communications shall be (i) hand delivered, (ii) sent by telecopy and 22 mail, or (iii) sent by mail. Mail shall be conclusively deemed to 23 have been received by_the addressee five (5) days after the deposit 241 thereof in the United States Mail, postage prepaid and properly 25 addressed as noted above. 26 f. Entire Agreement. This Agreement supersedes any 27 and all other agreements, either oral or in writing, between the 28 parties with respect to the subject matter herein. Each party to this 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 Agreement acknowledges that no representations have been made by any party which are not embodied herein and that no other agreement, u statement or promise not contained in this Agreement shall be valid and binding. Ahy modification of this Agreement will be effective only if it is in writing and signed by the parties. g. Benefit of Agreement. This Agreement shall bind and benefit the parties hereto and their heirs, successors, and permitted assigns. h. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California. i. Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. j. Forum Selection. Any action brought relating to this Agreement shall be brought and held exclusively in a State Court in the County of Los Angeles, California. k. Recitals. All recitals are incorporated by reference. 1. Waiver. Any waiver at any time by either party of its rights with respect to a default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver with respect to subsequent default or other matter. M. Force Majeure. Neither party shall be considered to be in default in any of its obligations under this Agreement when a failure of performance shall be due town uncontrollable force. The terms "uncontrollable force" shall mean any cause beyond the control I of the party affected, including, but not limited to, flood, 2 earthquake, storm, fire, lightening, epidemic, war, riot, civil 3 disturbance or disobedience, labor dispute, labor material shortage,. 4 sabotage, federal, state, or municipal action, statute, ordinance, or $ regulation, embargoes or the United States Government or any other 6 government, which by exercise of due diligence such party could not 7 reasonably have been expected to avoid and by exercise of due 8 diligence has been unable to overcome. Either party rendered unable 9 to fulfill any of its obligations under this Agreement by reason of an 10 uncontrollable force, shall give written notice within five (5) 11 business days of such fact to the other party and shall exercise due 12 diligence to remove such inability with all reasonable dispatch. 13 n. Warranty. Consultant warrants that the services 141 to be rendered pursuant to this Agreement shall be performed in 15 accordance with the standards customarily provided by an experienced 16 and competent professional organization rendering the same or similar 17 services. 18 o. Attorney's Fees. In the event that it becomes 19 necessary for either party to this Agreement to enforce any of the 20 provisions of this Agreement, the parties agree that a court of 21 competent jurisdiction may determine and fix reasonable attorney's 22 fees to be paid to the successful litigant. 23 p. Arbitration. The parties agree that any and all 24 disputes arising out.of or in relation to this Contract, including 251 without limitation any action in tort, shall be resolved exclusively, 26 finally and conclusively by arbitration in Los Angeles County, 27 California under the auspices of and pursuant to the rules of the 28 Judicial Arbitration & Mediation Services Inc. (JAMS). Each party -10- I will select an arbitrator. Those two arbitrators will then select a 2 third. The three -member panel will make the final decision. All 3 decisions of the arbitrators shall be in writing, and the arbitrators 4 shall provide written reasons for their decision. The arbitration 5 decision shall be final and binding on the parties. Notwithstanding 6 the foregoing, the parties shall be permitted to access the court 7 system to enforce any arbitration award or to obtain injunctive 8 relief. The exclusive jurisdiction and venue for any such action 9 shall be the Superior Court of California, Los Angeles County. Any 10 and all contracts between Consultant and any subcontractor relating to 11 this Agreement shall include the same arbitration clause. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -11- I IN WITNESS WHEREOF, the City and the Consultant have 2 executed this Agreement by and through their authorized officers as of 3 the date first hereinabove set forth. 4 5 CITY OF VERNON 6 By: 7 EONIS C. BURG, Myor 8 9 ATTEST: 10 11 BRUCE V. LKENHORST, JR. Acting City Clerk 12 13 APPROVED AS TO FORM: 14 15 ERIC T. SCH, City Attorney 16 17 SKS Professional Services, Inc., 18 dba MSW Co sultants 19 By: 20 �O Name: G�C�1�i1 L Y-:w 21 n Title:C 22 23 By: 24 Name • C r 1 '5jLj -v 25 `� Title: �Wl"G'G- 26 27 28 -12- May 24, 2006 Mr. Lewis Pozzebon Director/Health Officer 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 (City). 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, 2007, and 2008. BACKGROUND MSW Consultants and its subcontractor, E. Tseng & Associates, have been providing solid waste consulting services to the City for the last six years. In the course of our work, we have recovered over $30,000 in underpaid franchise fees, and re -assigned several thousand tons of solid waste that was initially attributed to the City of Vernon in the Disposal Reporting System (DRS). As a result of these efforts, the tons being reported at the landfill as originating in Vernon, are more accurate today than the in the early years of the program. Additionally, we have been available to provide advice on regulatory compliance, and assist in other special projects related to solid waste. E. Tseng & Associates has provided the businesses in Vernon with over 700 on -site waste assessments. These waste assessments have helped to establish numerous business -specific recycling programs, enabled the City to more accurately measure its total amount of waste generation, and resulted in several Vernon businesses being 27393 YNEz ROAD, SUITE 160, TEMECULA, CALIFORNIA 92591 951.694.4001 951.694.9001(FAX) C+DIVULTANTS SOLID WASTE CONSULTANTS To LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 2 of 9 recognized by the California Integrated Waste Management Board (CIWMB) for their achievements in waste reduction. As a result of the recycling efforts of Vernon businesses, the City has been able to consistently achieve waste diversion rates that exceed the 50% required by the State. We also recently assisted in conducting the City's own Solid Waste Alternatives Program (SWAP), which identified and recognized over 50 Vernon businesses with exemplary waste diversion and recycling practices. 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 scope of work described below, and shown in the attached Exhibits 1 and 2. Task 1— AB 939 Compliance Subtask 1.1— Prepare AB 939 Annual Reports MSW Consultants and E. Tseng and Associates will continue to prepare the AB 939 Annual Report through the CIWMB electronic annual report system, and calculate the diversion rate with the modified disposal correction. In addition to filing the Annual Report, we will prepare related documents and answer CIWMB inquires related to the Biennial Review. We will coordinate with the City and attend any meetings that may be required by the CIWMB, or its Office of Local Assistance (OLA). This will also include continuing to update the required environmental justice analysis, which is now required by the CIWMB. W alor CONSULTANTS SOLID WASTE CONSULTANTS TO LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 3 of 9 Subtask 1.2 —Provide Technical Recycling Assistance to Businesses E. Tseng and Associates will continue to provide business waste reduction and recycling technical assistance to approximately 100 businesses per year. Our recycling specialists will provide business -specific literature and recycling resource guides. Our approach will conform to the protocols and standards of the CIWMB, and the Los Angeles County Department of Public Works Smart Business Program. As always, we will treat the business data with the utmost confidentiality. Depending upon regulatory and market factors, we may focus our efforts on specific business sectors, or particular material types. Subtask 1.3 - Construction and Demolition Waste Reduction and Recycling Program E. Tseng and Associates will continue to work with selected construction projects targeted by the City of Vernon to assist contractors to recycle as much as reasonably possible. This will entail identifying markets for recyclable materials, and documenting the type and amount of recycled material. The documentation will be retained to demonstrate the ongoing implementation of the City's C&D waste diversion program. Subtask 1.4 — Assist with 2007 SWAP Awards Program We will again assist the City in conducting its own SWAP award program with the award ceremony tentatively scheduled to be held in the fall or winter of 2007. We will assist with the planning and outreach for the program, identify businesses with exemplary waste diversion programs to be recognized, and assist the City in preparing for the award ceremony. Mr. Lewis Pozzebon May 24, 2006 Page 4 of 9 Subtask 1.5 —Assist in Developing New Waste Diversion Programs We will seek to develop new or expanded waste diversion programs. For example, in coordination with the City, and possibly in partnership with one or more of the City's haulers, we may assist the City in developing a collection program for waste textiles, or other materials, that are now discarded and landfilled. In support of this effort, we will seek to develop market contacts for these materials in Asia We will also propose to the OLA and/or the CIWMB that it develop a grant program for textile recycling. If the CIWMB were to develop such a program, we would seek grant funding for the City. As another example, we may assist the City in developing recycling rebate programs that create economic incentives for haulers to collect and divert materials that are now being landfilled. We will coordinate our efforts with the City prior to performing these tasks. Subtask 1.6 — Perform Other Regulatory Compliance or Solid Waste -related Tasks We will assist the City in performing various regulatory compliance tasks and/or other tasks related to solid waste management. For example, we may perform an informal update the City's Source Reduction and Recycling Element (SRRE) through the Annual Report process. We may also assist the City in complying with any new regulations, or respond to any inquiries from other agencies (e.g., Gateway Cities, etc.). If needed, we may also assist the City with any modifications to the nonexclusive franchise fee system. We will perform these types of tasks as requested by the City, and according to the budgeted hours shown in Exhibits 1 and 2. CONSULTANTS SOLID WASTE CONSULTANTS To LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 5 of 9 Task 2 — Review Franchise Fee Payments and Reported Tons Task 2.1— Per form On -site reviews of 23 Franchised Haulers We will contact and visit each of the City's 23 franchised haulers. We will, on a sample basis, review the support for the gross receipts and tonnage they report to the City. 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. 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 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., gross receipts per ton, 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 support our findings, and document the work we perform. We will prepare a brief summary report for each of the reviews we perform.. The summary reports will describe the work we performed, our findings, and our recommendations. CONSULTANTS SOLID WASTE CONSULTANTS ToLocAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 6 of 9 Subtask 2.2 — Compare Tonnage and Resolve Discrepancies We will obtain disposal tonnage reports 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, we will compare the tonnage on the landfill reports to the tonnage they have reported to the City. We will resolve any significant tonnage 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 increase the likelihood that the City will meet or exceed the State's mandated 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 an opinion. PROJECT TEAM MSW Consultants specializes in providing solid waste consulting service to local governments. For purposes of this engagement, SKS Professional Services, Inc., doing business as MSW Consultants, will serve as the prime contractor to the City. Dr. CONSULTANTS SOLID WASTE CONSULTANTS TO LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 7 of 9 Eugene Tseng of Eugene Tseng & Associates, will serve as subcontractor to SKS Professional Services. Our team members are skilled professionals with extensive experience in the field of solid waste management. 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 20 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 a member of the Board of Directors of the Southern California Waste Management Forum (SCWMF). Examples of Southern California solid waste clients that Mr. Davis has served include the cities of Azusa, Baldwin Park, Brea, Hawthorne, Imperial Beach, La Canada/Flintridge, Lompoc, Ontario, Orange, San Bernardino, San Buenaventura, and Santa Barbara. 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 perform the reconciliation of the haulers reported tonnage to the landfill tonnage data. CONSULTANTS SOLID WASTE CONSULTANTS To LOCAL GOVERNMENT Mr. Lewis Pozzebon May 24, 2006 Page 8 of 9 Dr. Eugene Tseng—Project Engineer Dr. Tseng is an environmental engineer and a licensed California attorney specializing in environmental law. He has over 33 years of engineering experience in the municipal solid waste and hazardous waste management fields. Dr. Tseng is primarily involved with assisting cities with AB 939 compliance. 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 toward 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. Betsy Stoeven— Waste Diversion Technician and Outreach Coordinator Ms. Betsy Stoeven is a waste diversion and recycling specialist with over ten years of experience in designing and implementing commercial and industrial waste diversion programs. In addition to extensive experience in providing technical recycling assistance to businesses, Ms. Stoeven's experience includes conducting waste surveys, preparing AB 939 Annual Reports for the CIWMB, performing waste generation and composition studies, and analyzing and developing markets for recyclable materials. Ms. Stoeven has a B. A. in Political Science from Stephens College in Columbia, Missouri, and has completed UCLA's Solid Waste Management Certification Program. Ms. Stoeven will serve as Waste Diversion Technician and Outreach Coordinator. She will supervise and perform the business waste assessments, assist in preparing the City's Annual Report, identify candidates for the City's SWAP program, and perform other solid waste tasks related to regulatory compliance and waste diversion. Mr. Lewis Pozzebon May 24, 2006 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 $127,000 in fiscal year 2007, and $133,000 in fiscal year 2008. 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 perform those tasks on a time and materials basis at the hourly rates shown in Exhibits 1 and 2. Prior to performing any tasks outside the Scope of Work, we will obtain written approval from the City. We will submit invoices each month with a summary description of the work we performed and a list of the hours worked by each of our 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. 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 951/694-4001. Attachments Exhibits 1 and 2 m 5 i o coof o q h I M H OO ao n N N CD 0 7 N w w 00 rn W W O O O 0O0 N CD M .�-� W O %0 O 0% a'Al N N M O O N .0 O Vt N 000 000 v+ Nr M CI -W OVA. r H O Vi C> F. G dIR Vi � s+ O co O O 0 0 aD O O O� N icy N I [-+ h 10 ao O c} d� `OD al OfA n V0� O W 0 �H W ry in O f/1 M to,, O O M M O En o M va to i i.. N0N N N p I N O NN0 N Nap � tft [(yV d� 10 m ell 0 ai'i if H fe 5 is In lNu x W Ol 0% y0 O� 12 G 0 Z bC x Iwo N iy E" v ,. N" N > d x .'4 o �.o A.� �w o q v a o p W U Q Cam. voi rn 0. Cd.. V in [n H x F H � x rr' N W� O N N CD O (� O I ( n F M ER M O 7 N co V~9 w d N O N n W O O O 4A vo C. O i O I ID O N to O oo N� O. O W O N W {�bo -V N .� t» ao .-+ ao a y 0Oo m rNi O N O fH Of? N A �D V). O O O O N N p O fA N ram+ C> x � cn 10 " 00 O V � O iA n o `D M N 00 M I9� I in Wp G O bf91, to 10 O O N .%D+ ice+ m � cO� O eM M � in O co O O NON a cn O W O O O N M N 00 .W. t N Ic, M fq fA N Q W W � CA ai W y°y CO C- x w w Q Q E. F F F. H. W o v o F. cn .'� y Rr V to (A E4 M � *�3 N N d x r1 N 4 6 7 8 9 10 11 12 13 14 15 16 17 18 kll 21 22 23 24 25 26 27' 28 EXHIBIT B INSURANCE SCHEDULE Consultant shall provide proof of insurance, including but not limited to, a standard original certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): I. Coverage and Limits Bodily Injury Property Damage Hazards Each Person Each Accident Each Accident Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Workers' Compensation $ Statutory Employers' Liability $1,000,000 per employer II. Liabilily General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (If Applicable) $1,000,000 $2,000,000 $1,000,000 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 Contractual Liability $1,000,000 $2,000,000 $1,000,000 Professional Liability $1,000,000 $1,000,000 $1,000,000 a . The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 1. An original endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement and specifying the activities covered. 4. Such other endorsement as may be required by City. 5. A copy of your general and professional insurance policy declarations page. 6. A copy of schedule of forms of endorsement. b. In addition to the above, the Consultant shall provide such further proof of insurance documentation as the City deems necessary. I ' ' Memo To: Nelly Giron, City Clerk From: Lewis Pozzebon, Director / Health Officer Date: 5/20/2008 Re: Change Order No. 1, MSW Consultants I am forwarding the subject executed original change order for your records. I am also sending an executed original change order to MSW Consultants. Please let me know if you have any questions, or need more information. Attachment Xc: Purchasing 0 Page 1 CITY OF VERNON HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT CHANGE ORDER NO. 1 SUPPLEMENT NO. SHEET OF SHEETS PROJECT: MSW Consultants Solid Waste Consulting Agreement P.O. NO. 011.0001089 TO: MSW Consultants CONTRACTOR REQUESTED BY: Contractor You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not previously included in the plans and specifications of this contract. Except as specifically modified herein, all terms and conditions of the original contract remain in full force and effect, and apply to the additional work as if said work was originally included in the contract. Provide the following services: Develop and implement Wood -Textile Diversion Program Produce Solid Waste Alternatives Program Award Video Develop and implement Sustainability Technical Assistance Program TOTAL CHANGE ORDER AMOUNT NOT TO EXCEED $90,000. Contract Amount(Base Bid) ................................................ $ 133,000.00 Amount of This Change OrderI ............................................. $ 90,000.00 Amount of Previous Change Orders ......................................... $ 0 Total Change Orders ..................................................... $ 90,000.00 Modified Contract Amount ............................................. $ 223 000.00 By reason of this change order the time of None com letion willbe adjusted as follows: Approved: Date: 3 Director of He th f9okironmental Control We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, ifthis proposal is approved, that we will provide all labor, equipment and materials, including overhead, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above. Jj Y Accepted Date: IVA CC G 'J9 Z 0 0 I?e Contractor: � Gay % U� � ^ �� ► 7 By: I Title: i��✓ ItJ�t"q ob-071 CITY OF VERNON HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT CHANGE ORDER NO. 2 SUPPLEMENT NO. SHEET OF SHEETS PROJECT: MSW Consultants Solid Waste Consulting Agreement P.O. NO. 011.0001089 TO: MSW Consultants CONTRACTOR REQUESTED BY: Contractor You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not previously included in the plans and specifications of this contract, Except as specifically modified herein, all terms and conditions of the original contract remain in full force and effect, and apply to the additional work as if said work was originally included in the contract - Provide the following services: Solid waste professional consultant services. TOTAL CHANGE ORDER AMOUNT NOT TO EXCEED $517.28 Contract Amount (Base ........................................... $ 133,000.00 Bid) Amount of This Change ............................................. $ 517.28 Order Amount of Previous Change Orders I .... .... ... $ 90,000.00 Total Change Orders $ 90,517.28 Modified Contract Amount $ 223,517.28 By reason of this change order the time of On completion will be adjusted as follows: Approved: Date: e 's P zzebon, Direct r ealt1k& Environmental Control Attest: Date: Manu a G' on, City Clerk We, the undersigned Contractor, have given careful consid ration to the change proposed and hereby agree, if this proposal is approved, that we will provide all labor, equipment and materials, including overhead, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above.,��-- Accepted Date: 7 - 2J�' v g Contractor:( By: Title: r �is)Gf Ij�ijjf/ c: Project rule/Contractor/Purchasing/ Resolution No. 9082 Memo o: Nelly Giron, City Clerk From: Lewis Pozzebon, Director Date: July 30, 2008 Re: Executed Original Change Order No. 2 for Solid Waste Consulting Services I am forwarding an executed original Change Order No. 2 for MSW Consultants (Resolution No. 9082) for your records. Thank you. Attachment 08-,.(26/2008 13:54 FAX 323 588 4320 U 003 06 u- 0`1% CITY OF VERNON HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT CHANGE ORDER NO. 1 SUPPLEWNT NO. � SHEET _ OF SHEETS PROJECT: MSW Consultants Solid Waste Conmd tag Agreement P.O. NO. oil.000l089 TO: MSW Cousnitants CONTRACTOR REQUESTED BY-. Contractor You are hereby directed to matae the herein described changes to the plans and sped imtions or do the following described work not previously included in the plans and speg�eaaons of this contract Except as specifically modified herein, all terms and conditions of the original oontract remain in full force and c1lbq, and apply to the aditwal work as if said work was originally anrl7krtpi in the rrrmharf Provide the following services: Develop and implement Wood -Textile Diversion Program Produce Solid Waste Alternatives Program Award Video Develop and implement Sustainability Tecboical Assistance Program TOTAL CHANGE ORDER AMOUNT NOT TO EXCEED $90,000. Contract Amount age Bid $ 133,000.00 Amount of This Change Order I .. S 90,000.00 ,Amount of Previous Chan a Orders $ 0 Total Change Orders I .. $ 90,000.00 Modified Contract Amount $ 223 000.00 y ream ofma change o;der the time of coin eti0n will � •ostod � folloxs l�t'one _ Approved: Date: Director of annual Control We, tha —denvgaod contiaaar, have given ree jg4 con4der4oa to tbo chango proposed mat hereby agree, iftlus prop -at is aWovml, tw we will provido all lahor, cVipma land material$ including overb mA except tie=y othtawbe be noted above, mad pufmm all novieca necessary 10the wade above speoilied, and Will eeopt payment the[ef= the pAoes shown above Accepted Date: �, $ Z 0 aY Title_ �•�JSICJ�"t �,� 08/28/2008 13:54 FAX 323 588 4320 [a] 002 Memo Tv: Nelly Giron, City Clerk From: Lewis Pozzebon, Director / Health Officer Date: 5/20/2008 Re: Change Order No. 1, MSW Consultants I am forwarding the subject executed original change order for your records. I am also sending an executed original change order to MSW Consultants. Please let me know if you have any questions, or need more information. Attachment Xc: Purchasing 0 Page 1 a7m CONSULTANTS SOLID WASTE CONSULTANTS TO LOCAL GOVERNMENT February 28, 2008 Mr. Lewis Pozzebon Director/Health Officer City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Request for Contract Budget Adjustment for FY 2007-08 Dear Mr. Pozzebon: The purpose of this letter is to request that the City increase MSW Consultants' budgeted contract amount for the 2007-08 fiscal year by $90,000. This amount is made up of three components. Two of the components relate to two additional activities that MSW Consultants undertook in the latter half of 2007 that were not included in our original proposal. The third component relates to a new activity that we propose to undertake during the remainder of this fiscal year. This letter explains each of these three components. The Wood Textile Incineration Program Last year we identified and visited approximately 80 businesses in the City with waste streams that were rich in wood and textile debris. As a result of our effort, we have a large database that includes the estimated amount of wood and textiles generated by each of these businesses. We are in the process of using this information to design an economic incentive program for the City's haulers to divert wood and textiles from the landfill and to the Commerce waste -to -energy facility. This activity relates to the first component of our requested budget increase in the amount of $30,000. 27393 YNEz ROAD, SUITE 160, TEMECULA, CALIFORNIA 92591 951.694.4001 951.704.9776 (CELL) 951.694.9001(FAX) W W W.MSW-CONSULTANTS.COM M70 CONSULTANTS SOLID WASTE CONSULTANTS TO LOCAL GOVERNMENT Mr. Lewis Pozzebon February 28, 2008 Page 2 of 3 Production of the SWAP Award Video Although we had anticipated conducting the SWAP Award program in our original proposal, we did not contemplate producing the video that was shown at the award ceremony and distributed to the SWAP Award recipients. Producing the SWAP Award video required developing a script, hiring a video producer, videotaping at various locations, and obtaining photographs of many of the SWAP award recipients. This activity relates to the second component of our requested budget increase in the amount of $30,000. Sustainability Technical Assistance In addition to the ongoing technical recycling assistance we provide to Vernon businesses each year, we propose provide approximately 20 additional businesses with Sustainability Technical Assistance. The scope of this new assistance will be more significant than that which we currently provide. As we have discussed, this technical assistance will include, 1) developing'sustainability metrics' that these businesses can use to measure their 'carbon footprints; 2) recommending programs and practices for these businesses to reduce their greenhouse gas emissions, and, 3) developing an initial database that the City can eventually use to estimate its overall impact on greenhouse gas emissions. This activity relates to the third component of our requested budget increase in the amount of $30,000. We realize that this request is significant. However, in the eight years that MSW Consultants has been serving the City, this is the first such budget increase request. Moreover, in many of the past eight years, the actual amount of our fees has been substantially less than our budgeted contract amount. In the time that MSW Consultants has been serving the City, the cumulative amount that our actual fees have been less than our budgeted contract amount exceeds $200,000. CONSULTANTS SOLID WASTE CONSULTANTS TO LADCAL GOVERNMENT Mr. Lewis Pozzebon February 28, 2008 Page 3 of 3 Therefore, we respectfully request that the City approve our request for an increase to our budgeted contract amount for FY 2007-08. If you have any questions, please feel free to call me at 951/694-4001, or on my cell at 951/704-9776. Sincerely, David L. Davis, CMA Principal Memo To: City Council rom: Lewis Pozzebon, Director Date: March 3, 2008 Re: Change Order No. 1 for Solid Waste Consulting Services IimAR 0 4 2008 CITY CLERK'S OFFICE APPROVED MAR 17 '08 CITY COUNCIL CITY CLERK DISTRIBUTION :311-i/-g , LINDA V-41114 Resolution No. 9082 approved the City's agreement with MSW Consultants (MSW) to provide solid waste consulting services for Fiscal Years 2006-07 and 2007-08. MSW has completed a major portion of the services identified in the agreement. However, MSW has notified our department by letter (attached), dated February 28, 2008, that in order to perform additional needed services, an increase in the approved amount of the fees for service is necessary. Additional funds are needed due to unanticipated time and expenses which were required to: • Conduct an analysis of businesses that generate combustible waste and design an economic incentive program to divert this waste from being taken to landfills and delivered to a waste -to - energy facility. As a result of this program, the City will earn diversion credit for the State mandated waste reduction program. • Produce the Solid Waste Alternatives Program award video. The accomplishment of this service was underestimated because it was the first time it has been attempted. • Develop a Sustainability Technical Assistance (STA) Program. The program will provide businesses in Vernon with the ability to measure the environmental benefits of their operations. It will be a "model" program and the first ever in the State. Based on the opportunity to enhance the City's solid waste program and the City's state-wide visibility, preliminary work has been initiated based on services identified in the existing agreement. However, to complete the STA Program, additional funding is needed. The current fee for services for Fiscal Year 2007-08 is $133,000. The total cost for the increased services is an additional $90,000. Revenue to fund solid waste consulting services is derived from solid waste franchise fee payments. Annual revenue from franchise fee payments is approximately $600,000. Based on the need for the services identified by MSW and the availability of revenue to offset solid waste consulting fees, I am recommending approval of Change Order No. 1. Xc: Eric Fresch, City Administrator Jeff Harrison, City Attorney Attachments