HomeMy WebLinkAbout22- Amendment 1 - PSA with Burns & McDonnell - Rate Study of the Solid Waste Operations First Amendment to Professional Services Agreement for Solid Waste Cost of Service and Rate Design
FY 2023 – FY 2024 Page 1 of 2
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR
solid waste cost of service and rate study dated October 12, 2021 (the “Agreement”) is made
and entered into this _____ day of ____________, 202__, by and between the CITY OF
BOZEMAN, MONTANA, a self governing municipal corporation organized and existing under
its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with
a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and
Burns & McDonnell Engineering Company, Inc, hereinafter referred to as “Contractor.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement
as follows:
1. Extension of Term. Section 31 of the Agreement is extended and will terminate upon
completion of the scope of services of Exhibit A.
2. Agreement still valid. All remaining terms and provisions of the agreement remain valid.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
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220December
First Amendment to Professional Services Agreement for Solid Waste Cost of Service and Rate Design
FY 2023 – FY 2024 Page 2 of 2
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA Burns & McDonnell Engineering Company, Inc
By________________________________ By_____________________________
Jeff Mihelich, City Manager Print Name:
Title:
APPROVED AS TO FORM
By_______________________________
Greg Sullivan, Bozeman City Attorney
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Scott Pasternak
Department Manager
8911 Capital of Texas Highway \ Building 3, Suite 3100 \ Austin, TX 78759
O 512-872-7130 \ F 512-872-7127 \ burnsmcd.com
November 29, 2022
Mr. Kevin Handelin
Solid Waste Division Superintendent City of Bozeman, MT
Re: Policy Memo & Updated Financial Study - Proposal
Dear Mr. Handelin,
Burns & McDonnell is pleased to present the following Scope of Work, Schedule, and Fee to continue providing solid waste, recycling, and composting consulting services for the City of Bozeman (City). These additional services are based on discussions between Burns & McDonnell and the City following the completion of the 2022 Cost of Service and Organics
Feasibility Study Update (2022 Update).
SCOPE OF WORK
The following Scope of Work is divided into four tasks with Task 1 focusing on evaluating key topics and developing a Policy Memo that will assist the City in implementing an accessible and financially solvent automated organics collection program. Task 2 focuses on updating the 2022 Update’s financial analysis based on scenarios determined in Task 1, and Task 3 focuses on
meeting with City staff and City Commission to review and present key findings and
recommendations. Task 4 represents Burns & McDonnell’s additional efforts completed for the 2022 Update.
Task 1 – Develop Policy Memo
TASK 1A: KEY TOPIC ASSESSMENT
Burns & McDonnell will assist the City in implementing an accessible and financially solvent automated organics and recycling collection program by developing a Policy Memo, in which
the following key topics will be evaluated:
► Service bundling
► Opt-in versus opt-out collection programs
► Mandatory services for collection providers
For each of these topics, the Policy Memo will include:
► Description of the topic
► Tables describing advantages versus disadvantages
► Brief case studies
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Mr. Kevin Handelin November 10, 2022 Page 2
In addition, Burns & McDonnell will provide discussion and recommendations related to options to increase subscription recycling participation and provide pilot organics customers with finished compost product.
TASK 1B – DRAFTING POLICY MEMO
Burns & McDonnell will deliver a draft Policy Memo in Microsoft Word for the City’s review based on the evaluation of key topics described in Task 1A. Based on discussion with City staff, all policy recommendations described within the Policy Memo will be assessed by the City
Attorney’s Office to determine their legality for the City.
Upon receipt of City staff feedback on the draft Policy Memo, Burns & McDonnell will make appropriate changes and provide the City with a Final Memo. We will issue the Final Memo within two weeks of receiving feedback from the City on the draft.
TASK 1 DELIVERABLES
► Draft Policy Memo
► Final Policy Memo
Task 2 – Update Financial Analysis
TASK 2A – UPDATE FINANCIAL ANALYSIS
Based on scenarios described in the Policy Memo, Burns & McDonnell will correspondingly
update the financial model and Executive Report that were provided as part of the 2022 Update. Burns & McDonnell will provide the City with a draft form of the financial model for review and feedback prior to updating the Executive Report and associated financial schedules.
Proposed rates will be provided based on an evaluation of up to two financial scenarios determined in Task 1. Proposed rates will be assumed to be effective beginning at the start of
FY 2024 (July 1st, 2023).
TASK 2 DELIVERABLES
► Revised Draft of the Executive Report
► Draft of financial model for City’s review
► Updated Financial Schedules
► Updated Client Model with Corresponding Changes
Task 3 – Meetings with City Staff and City Commission
TASK 3A: MEETINGS WITH CITY STAFF
Burns & McDonnell will meet with City Staff for up to three (3) virtual conference calls during key parts of the project to discuss feedback and results.
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TASK 3B: MEETING WITH CITY COMMISSION
Burns & McDonnell will present key findings and recommendations during one (1) in-person
City Commission meeting. For this meeting, Burns & McDonnell will provide a PowerPoint presentation in advance of the meeting for one (1) round of feedback.
TASK 3 DELVIERABLES
► Virtual conference calls with City staff
► PowerPoint presentation for City Commission Meeting
► In-person presentation at City Commission Meeting
Task 4 – Additional Analysis Completed for Updated Study
TASK 4A: ADDITIONAL RATE ANALYSIS COMPLETED
In October 2022, Burns & McDonnell completed additional rate analysis for the 2022 Update
beyond the original scope. The Fee provided below represents Burns & McDonnell’s cost for
the additional analysis is represented in this Task.
TASK 4 DELIVERABLES
► Deliverables related to this Task were provided to the City during the completion of the
2022 Update in October 2022.
Task 5 – Grant Writing Assistance
TASK 5A: GRANT WRITING ASSISTANCE
Burns & McDonnell will provide the City support in the development of up to two grant applications as a part of the U. S. EPA Solid Waste Infrastructure for Recycling Grant Program, which have a deadline of January 16. The two opportunities identified by Burns & McDonnell
for this grant-writing assistance are as follows:
► Solid Waste Infrastructure For Recycling (SWIFR) Grant Program for Political Subdivisions of States and Territories (EPA-I-OLEM-ORCR-23-03)
► Consumer Recycling Education and Outreach (REO) Grant Program (EPA-I-OLEM-ORCR-23-02)
The Fee provided below is based on completing the following Scope of Work for Task 5 for
either one or two grant applications.
We will conduct a thorough review of the grant notification to specifically key in on the funding opportunity description, goals, eligibility requirements, and application requirements. Burns & McDonnell will attend any required or recommended pre-application meetings. We will utilize
this information to identify the most appropriate project and project components for the pursuit.
In a meeting with the City, we will present the findings of our review and recommended project direction to collaboratively define the application project description.
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Burns & McDonnell will draft a project narrative in accordance with the established guidelines of the grant opportunity. We will format the grant application in a visually compelling presentation including the development of supporting graphics, within the specified grant formatting parameters. We will provide the City with a draft narrative to review and incorporate
the comments into a final draft for submittal. Burns & McDonnell will assist in the development of a high-level budget and schedule in coordination with the City and format to be consistent with the narrative.
Supporting documentation may include letters of support and staff resumes. Burn & McDonnell will draft a letter of support as a template for the City to share with partners as identified. Staff
resumes will be drafted by the City.
TASK 5 ASSUMPTIONS
► Grant application is a one-step application (opposed to a multi-phase application)
► The project narrative will not exceed the maximum length (number of pages) as described
in the application instructions (not including the cover letter, budget, or schedule)
► The City will provide all data and information requests within the appropriate timeframe
for developing the grant narrative
► The City will complete any standard grant application forms
► The City will obtain an account through grants.gov and be responsible for the submission
of all forms and documents
TASK 5 DELIVERABLES
► Draft grant application
► Supporting documentation (as applicable)
SCHEDULE
Burns & McDonnell will complete Task 1 by the end of January 2023, with Task 2 completed by
the end of February 2023, assuming a notice to proceed by December 2, 2022. Meetings with the
City (Task 3A) will be scheduled and completed on an as-needed basis. The City Commission meeting (Task 3B) will be tentatively scheduled for March, April or May 2023, with a specific date determined in collaboration between Burns & McDonnell and City staff.
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FEE
Provided below are the proposed fee by task. We will invoice the City for each task on a percent complete basis.
Task Fee
Task 1: Develop Policy Memo
TASK 1A: KEY TOPIC ASSESSMENT $14,130
TASK 1B: DRAFTING POLICY MEMO $2,870
Task 2: Update Financial Analysis
TASK 2A: UPDATE FINANCIAL ANALYSIS $4,360
Task 3: Meetings with City Staff and City Commission
TASK 3A: MEETINGS WITH CITY STAFF $1,850
TASK 3B: MEETING WITH CITY COMMISSION $5,190
Task 4: Additional Rate Analysis Completed
TASK 4A: ADDITIONAL RATE ANALYSIS COMPLETED $1,570
Task 5: Grant-Writing Assistance
TASK 5A: GRANT WRITING ASSISTANCE (ASSISTANCE WITH ONE GRANT APPLICATION) $12,500
TASK 5A: GRANT WRITING ASSISTANCE (ASSISTANCE WITH TWO GRANT APPLICATIONS) (OPTIONAL) $7,000
Total (Assistance with One Grant Application) $42,470
Total (Assistance with Two Grant Applications) $49,470
Thank you for the opportunity to submit this proposal. Please let us know if you would like to discuss the proposal or provide comments.
Sincerely,
Scott Pasternak Department Manager Mark Knaack Environmental Services Manager
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this 12th day of October, 2021 (“Effective
Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal
corporation organized and existing under its Charter and the laws of the State of Montana, 121 North
Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771,
hereinafter referred to as “City,” and, Burns & McDonnell Engineering Company, Inc., hereinafter
referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and
collectively as “Parties.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Exhibit A and by this reference made
a part hereof.
2. Term/Effective Date: This Agreement is effective upon the Effective Date and will
expire on the 12th day of June, 2022, unless earlier terminated in accordance with this Agreement.
3. Scope of Services: Contractor will perform the work and provide the services in
accordance with the requirements of the Scope of Services. For conflicts between this Agreement and
the Scope of Services, unless specifically provided otherwise, the Agreement governs.
4. Payment: City agrees to pay Contractor the amount specified in the Scope of
Services. Any alteration or deviation from the described services that involves additional costs above
the Agreement amount will be performed by Contractor after written request by the City, and will
become an additional charge over and above the amount listed in the Scope of Services. The City
must agree in writing upon any additional charges.
5. Contractor’s Representations: To induce City to enter into this Agreement,
Contractor makes the following representations:
a. Contractor has familiarized itself with the nature and extent of this Agreement, the
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Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost, progress or performance of the Scope of Services.
b. Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform the services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this Agreement
shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark,
privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal,
state and municipal laws. The City will not determine or exercise control as to general procedures or
formats necessary to have these services meet this warranty.
6. Independent Contractor Status/Labor Relations: The parties agree that Contractor
is an independent contractor for purposes of this Agreement and is not to be considered an employee
of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s
personnel policies handbook and may not be considered a City employee for workers’ compensation
or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in
any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers’ Compensation Act,
Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of
Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for
all members and employees of Contractor’s business, except for those members who are exempted
by law.
Contractor shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
Contractor shall post a legible statement of all wages and fringe benefits to be paid to the
Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be
paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s
normal place of business and shall be made no later than the first day of services provided under this
Agreement. Such posting shall be removed only upon expiration or termination of this Agreement.
In performing the services under this Agreement, Contractor shall give preference to the
employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is
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defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers
both skilled in their trade and specialized in their field of work for all work to which they are assigned.
Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and
expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for
Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is
incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of
the requirements set forth in the above State of Montana schedule of prevailing wage rates may
subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll
records during the term of this Agreement and for a period of three (3) years following termination
of this Agreement.
The Contractor shall ensure that any person, firm or entity performing any portion of the
services under this Agreement for which the contractor, subcontractor or employer is responsible, is
paid the applicable standard prevailing rate of wages.
In the event that, during the term of this Agreement, any labor problems or disputes of any
type arise or materialize which in turn cause any services to cease for any period of time, Contractor
specifically agrees to take immediate steps, at its own expense and without expectation of
reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific
steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that
Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief
to the City so as to permit the services to continue at no additional cost to City.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes and for any claims regarding underpaid prevailing wages.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses,
expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or
damages of whatever kind or nature connected therewith and without limit and without regard to the
cause or causes thereof or the negligence of any party or parties that may be asserted against,
recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or
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in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii)
any negligent, reckless, or intentional misconduct of any of the Contractor’s agents.
For the professional services rendered, to the fullest extent permitted by law, Contractor
agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees, to the extent caused by the negligence or
intentional misconduct of the Contractor or Contractor’s agents or employees.
Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations
of indemnity that would otherwise exist. The indemnification obligations of this Section must not be
construed to negate, abridge, or reduce any common-law or statutory rights of the City as
indemnitee(s) which would otherwise exist as to such indemnitee(s).
Contractor’s indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City.
Should the City be required to bring an action against the Contractor to assert its right to
defense or indemnification under this Agreement or under the Contractor’s applicable insurance
policies required below, the City shall be entitled to recover reasonable costs and attorney fees
incurred in asserting its right to indemnification or defense but only if a court of competent
jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to
indemnify the City for a claim(s) or any portion(s) thereof.
In the event of an action filed against the City resulting from the City’s performance under
this Agreement, the City may elect to represent itself and incur all costs and expenses of suit.
Contractor also waives any and all claims and recourse against the City, including the right of
contribution for loss or damage to person or property arising from, growing out of, or in any way
connected with or incident to the performance of this Agreement except “responsibility for [City’s]
own fraud, for willful injury to the person or property of another, or for violation of law, whether
willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractor shall at Contractor’s expense secure
insurance coverage through an insurance company or companies duly licensed and authorized to
conduct insurance business in Montana which insures the liabilities and obligations specifically
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assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion
for liabilities specifically assumed by the Contractor in this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall
furnish to the City an accompanying certificate of insurance and accompanying endorsements in
amounts not less than as follows:
• Workers’ Compensation – statutory;
• Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
• Automobile Liability - $1,000,000 property damage/bodily injury per accident; and
• Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate.
The above amounts shall be exclusive of defense costs. The City shall be endorsed as an
additional or named insured on a primary non-contributory basis on both the Commercial General
and Automobile Liability policies. The insurance and required endorsements must be in a form
suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal.
Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any
required insurance coverage will be terminated or Contractor’s decision to terminate any required
insurance coverage for any reason.
The City must approve all insurance coverage and endorsements prior to the Contractor
commencing work.
8. Termination for Contractor’s Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails
to perform any of its obligations under this Agreement, or otherwise breaches any terms or
conditions of this Agreement, the City may, by written notice, terminate this Agreement and
the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due
to Contractor’s Fault”). The City may then take over the work and complete it, either with its
own resources or by re-letting the contract to any other third party.
b. In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
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c. Any termination provided for by this Section 8 shall be in addition to any other
remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9. Termination for City’s Convenience:
a. Should conditions arise which, in the sole opinion and discretion of the City,
make it advisable to the City to cease performance under this Agreement, the City may
terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s
Convenience”). The termination shall be effective in the manner specified in the Notice of
Termination for City’s Convenience and shall be without prejudice to any claims that the City
may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as
may be necessary to preserve, protect, and maintain work already completed or immediately
in progress.
c. In the event of a termination pursuant to this Section 9, Contractor is entitled
to payment only for those services Contractor actually rendered on or before the receipt of the
Notice of Termination for City’s Convenience.
d. The compensation described in Section 9(c) is the sole compensation due to
Contractor for its performance of this Agreement. Contractor shall, under no circumstances,
be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost
productivity, field office overhead, general conditions costs, or lost profits damages of any
nature arising, or claimed to have arisen, as a result of the termination.
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10. Limitation on Contractor’s Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
11. Representatives and Notices:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Kristin Donald, Finance Director or such other individual as City shall
designate in writing. Whenever approval or authorization from or communication or
submission to City is required by this Agreement, such communication or submission shall be
directed to the City’s Representative and approvals or authorizations shall be issued only by
such Representative; provided, however, that in exigent circumstances when City’s
Representative is not available, Contractor may direct its communication or submission to
other designated City personnel or agents as designated by the City in writing and may receive
approvals or authorization from such persons.
b. Contractor’s Representative: The Contractor’s Representative for the
purpose of this Agreement shall be Scott Pasternak or such other individual as Contractor shall
designate in writing. Whenever direction to or communication with Contractor is required by
this Agreement, such direction or communication shall be directed to Contractor’s
Representative; provided, however, that in exigent circumstances when Contractor’s
Representative is not available, City may direct its direction or communication to other
designated Contractor personnel or agents.
c. Notices: All notices required by this Agreement shall be in writing and
shall be provided to the Representatives named in this Section. Notices shall be deemed given
when delivered, if delivered by courier to Party’s address shown above during normal business
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hours of the recipient; or when sent, if sent by email or fax (with a successful transmission
report) to the email address or fax number provided by the Party’s Representative; or on the
fifth business day following mailing, if mailed by ordinary mail to the address shown above,
postage prepaid.
12. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman
business license, and inspections from applicable governmental authorities, and pay all fees and
charges in connection therewith.
13 Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and
State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination,
affirmative action, and utilization of minority and small business statutes and regulations.
14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by
Contractor of persons performing this Agreement shall be on the basis of merit and qualifications.
The Contractor will have a policy to provide equal employment opportunity in accordance with all
applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will
not refuse employment to a person, bar a person from employment, or discriminate against a person
in compensation or in a term, condition, or privilege of employment because of race, color, religion,
creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation,
gender identity, physical or mental disability, except when the reasonable demands of the position
require an age, physical or mental disability, marital status or sex distinction. The Contractor shall
be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United
States Code, and all regulations promulgated thereunder.
Contractor represents it is, and for the term of this Agreement will be, in compliance with the
requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act).
Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has
been found guilty of within 60 days of such finding for violations occurring during the term of this
Agreement.
Contractor shall require these nondiscrimination terms of its subcontractors providing services
under this Agreement.
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15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor
shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs,
by any employee or agent engaged in services to the City under this Agreement while on City property
or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of
and shall comply with its responsibilities and obligations under the U.S. Department of Transportation
(DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City
shall have the right to request proof of such compliance and Contractor shall be obligated to furnish
such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing its employees and agents in safe work practices.
16. Modification and Assignability: This Agreement may not be enlarged, modified or
altered except by written agreement signed by both parties hereto. The Contractor may not
subcontract or assign Contractor’s rights, including the right to compensation or duties arising
hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound
by all of the terms and conditions of this Agreement.
17. Reports/Accountability/Public Information: Contractor agrees to develop and/or
provide documentation as requested by the City demonstrating Contractor’s compliance with the
requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Contractor pursuant to this Agreement was used in
compliance with this Agreement and all applicable provisions of federal, state, and local law. The
Contractor shall not issue any statements, releases or information for public dissemination without
prior approval of the City.
18. Non-Waiver: A waiver by either party of any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent default
or breach.
19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to
retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice
required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable
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Professional Services Agreement for Recycling & Organics Feasibility Study FY 2022
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attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City
Attorney’s Office staff.
20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
21. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to assist
in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
22. Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23. Headings: The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to
which they refer.
24. Severability: If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
25. Applicable Law: The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
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28. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
29. Integration: This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained herein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties other
than as set forth in this Agreement. All communications, either verbal or written, made prior to the
date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this
Agreement by reference.
30. Consent to Electronic Signatures: The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
31. Extensions: this Agreement may, upon mutual agreement, be extended for a period
of one year by written agreement of the Parties. In no case, however, may this Agreement run longer
than eight months.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written or as recorded in an electronic signature.
CITY OF BOZEMAN, MONTANA Burns & McDonnell Engineering Company,
Inc.
By________________________________ By__________________________________
Jeff Mihelich, City Manager Print Name: ___________________________
Print Title: ____________________________
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
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Scott Pasternak
Department Manager
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City of Bozeman: City-wide Recycling and Pilot
Organics Collection Feasibility and Cost of Service Study Update 1
CITY OF BOZEMAN: CITY-WIDE RECYCLING
AND PILOT ORGANICS COLLECTION
FEASIBILITY AND COST OF SERVICE STUDY
UPDATE
This proposal is for Burns & McDonnell to assist the City of Bozeman (City) in updating the 2019 cost of service study and
2021 feasibility study for providing curbside recycling collection City-wide and initiating a pilot automated organics collection
program. We have organized this scope of services by describing four phases to the Scope of Work and to include: (1) Project
Initiation and Management; (2) Cost Service Study Update; (3) City-wide Recycling and Pilot Organics Collection Feasibility
Update; and (4) Report Preparation and Presentation. This proposal includes our scope of work, schedule, and fee.
SCOPE OF WORK
Phase 1 Project Initiation & Management
TASK 1A: INITIAL DATA REQUEST & REVIEW
Following receipt of the Notice to Proceed, Burns & McDonnell will provide the City with a detailed preliminary data
request that will encompass data needs for completing the study update. The data request will itemize our needs for
understanding the operational, contractual, and financial considerations that must be addressed. For the cost of service
study, Burns & McDonnell will also provide updated copies of all worksheets from the model that the City will need to
review and update, including the equipment and personnel allocation worksheets, billing units, and capital improvement plan.
Burns & McDonnell assumes any billing unit updates will be provided in summary form similar to the cost of service model
worksheets.
This task also includes organization and preliminary analysis of all data received. We recognize that the City may not be able
to, or already have provided certain items for this effort as part of the previous study. In these cases, we will work with the
appointed project manager to request updated information or determine reasonable substitutes for the key data, if needed.
TASK 1B: VIRTUAL KICK-OFF MEETING & PROJECT MANAGEMENT
Prior to commencing the study, members of the project team will conduct a kick-off conference call with key City staff.
During this kick-off conference call, we will discuss the project work plan, key issues to be addressed, key findings from
previous engagements as well as confirm the timing associated with the various project tasks.
We will discuss our initial data request that we will have provided to the City staff 7 to 14 days prior to the kick-off meeting.
Burns & McDonnell will provide the agenda and any handout materials at least two days in advance.
During the meeting, we will also identify primary contacts for our project team and the City and establish protocol for the
exchange of information and the resolution of issues that arise in the normal course of this engagement. To facilitate
effective communication between project team members and the City throughout the course of this project, Burns &
McDonnell will:
► Schedule and participate in periodic conference calls as needed to discuss project matters
► Provide periodic status updates via electronic format
► Be available for other communication(s) as needed
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City of Bozeman: City-wide Recycling and Pilot Organics Collection
Feasibility and Cost of Service Study Update 2
PHASE 1 DELIVERABLES
► Preliminary data request
► Electronic copies of the kick-off meeting agenda handouts, and follow-up summary
► Participation of Burns & McDonnell project manager and key staff in kick-off conference call and other requested
meetings
Phase 2: Cost of Service Study Update
Burns & McDonnell will assist the City in updating the cost of service analysis completed for the City in 2019. This effort
will provide the City with an updated five-year forecast.
TASK 2A: BASELINE COST OF SERVICE MODEL UPDATE
Tasks 2B and 2C contemplate alternative rate structures and the impact of those changes. Task 2A includes an update of the
cost of service model before those rate structure changes. Specifically, Burns & McDonnell will update:
► Test year
► Five-year forecast
► Cost of service by customer class
► Rate increases under existing rate structures
► Revenue under existing rate structures
► Net revenue under existing rate structures
Task 2A will also take into consideration challenges associated with labor shortages, vehicle availability, inflation forecasting
and the open market for solid waste services.
TASK 2B: EVALUATE NEW RATES
Burns & McDonnell will schedule a conference call with key City operations and finance staff. During the call, we will
discuss options and scenarios for the City’s solid waste and recycling rates, with a specific understanding of the competitive
nature of the solid waste market. We understand that City staff will be able to provide details on the rates being charged by
private haulers in the City. We will provide the City with rate recommendations.
TASK 2C: REVENUE SCENARIO FORECAST
Using the rate structure discussed in Task 2B and updated model from Task 2A, Burns & McDonnell will develop a revenue
scenario that shows the impact of the updated rate structure. Task 2C also includes working with the City to establish the
time frame for implementation of the rate structure.
TASK 2D: DEVELOP CLIENT MODEL AND CONDUCT TRAINING
Burns & McDonnell will provide the City with a client rate model, which will allow the City to update model inputs and
adjust assumptions to reflect changes to the City’s solid waste and recycling system. We will provide the City with a user
manual document, and we will conduct a virtual training with City staff on the use of the model.
PHASE 2 DELIVERABLES
► Updated schedules and worksheets
► Conference call to discuss revenue scenario findings
► Client model with user guide and training
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City of Bozeman: City-wide Recycling and Pilot Organics Collection
Feasibility and Cost of Service Study Update 3
Phase 3: City-wide Recycling and Pilot Organics Collection Feasibility Update
Burns & McDonnell will assist the City in updating the City-wide Recycling and Pilot Organics Collection Feasibility Study
that begun in 2020 and was completed for the City in 2021. Our analysis will address changes that have occurred due to
COVID-19 and associated impacts in society and the economy. We will review the assumptions, modeling, and analyses
with the City to determine key changes and updates that will need to be made.
PHASE 3 DELIVERABLES
► Updated modeling and analyses
► Conference call to discuss findings
Phase 4: Report Preparation and Presentation
TASK 4A: UPDATED COST OF SERVICE POWERPOINT
As a part of the City-wide Recycling and Pilot Organics Collection Feasibility Study, Burns & McDonnell still needs to
provide the City with a Final Report, PowerPoint presentation and meeting with the City Commission. We will complete
these efforts as a part of the City-wide Recycling and Pilot Organics Collection Feasibility Study. Phase 4 will include
efforts associated with developing an updated PowerPoint for the cost of service study update. We will not be developing an
updated cost of service study report. When we present to the City Commission on the City-wide Recycling and Pilot
Organics Collection Feasibility Study, the presentation will also include the cost of service study findings and
recommendations
PHASE 4 DELIVERABLES
► PowerPoint slides for the cost of service update
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City of Bozeman: City-wide Recycling and Pilot Organics Collection
Feasibility and Cost of Service Study Update 4
FEE
The following table provides an outline of the services to be provided and includes the fee, inclusive of professional fees and
out-of-pocket expenses. Services for Phases 1, 2, 3 and 4 will be invoiced on a percent complete basis.
Task Fee
Phase 1: Project Initiation & Management
TASK 1A: INITIAL DATA REQUEST & REVIEW $1,790
TASK 1B: VIRTUAL KICK-OFF MEETING & PROJECT MANAGEMENT $1,800
Phase 2: Cost of Service Study Update
TASK 2A: BASELINE COST OF SERVICE MODEL UPDATE $4,060
TASK 2B: EVALUATE NEW RATES $3,930
TASK 2C: REVENUE SCENARIO FORECAST $2,140
TASK 2D: DEVELOP CLIENT MODEL AND CONDUCT TRAINING $4,480
Phase 3: City-wide Recycling and Pilot Organics Collection Feasibility Update
TASK 3A: CITYWIDE RECYCLING AND AUTOMATED ORGANICS COLLECTION $5,010
Phase 4: Report Preparation and Presentation
TASK 4A: UPDATED COST OF SERVICE POWERPOINT $4,260
Total $27,270
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