Resolution No. 90821
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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
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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
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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1!
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7
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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
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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
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Address: Hartford Plaza Phone: 860-547-5000 obligations to policyholders
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Rating: A+ (Superior)
Affiliation Code: p (Pooled)
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+ Report Revision Date: 06/28/2006 (represents the latest significant change).
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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
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Data Status: 2006 Best's Statement File - P/C, US. Contains data compiled as of 6/5/2006
Checked).
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average and total composite of your selected peer group.
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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
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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
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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