Loading...
HomeMy WebLinkAbout11- SAIC Energy, Environment & Infrastructure Professional Services Agreementt This PROFESSIONAL SERVICES AGREEMENT is made this A � day of��,, 201 by and between CITY OF BOZEMAN, P.O. Box 1230, Bozeman, Montana, a Municipal Corporation of the State of Montana, ("City"), and SAIC Energy, Environment & Infrastructure, LLC 5806 Mesa Drive, Suite 310, Austin, TX 78731 ("Consultant"). RECITALS A. City desires to employ Consultant to furnish specific services of a professional planning and financial nature in preparation of a Solid Waste Services and Rate Design Study. B. Consultant agrees to furnish such services in accordance with the conditions herein provided and will carry out the duties and obligations imposed by the Agreement. C. City designates the Director of Public Services as the representative to administer this contract. D. Articles 1, 2, 5 and 13 of this agreement allow for revision upon mutual written agreement of the parties. AGREEMENT Subject to the provisions herein set forth and in consideration of the mutual covenants herein contained, Consultant agrees to furnish certain specified services and products to include: cost of service analysis; current operations analysis with best-practices recommendations to meet goals; and specific deliverables; more fully described in Attachment A. Such services and products shall be referred to as the Work. All services described herein are to be performed by Consultant and/or its contractors in accordance with the most commonly accepted standards and practices of the solid waste field. Consultant will use final product technologies that are acceptable to the City in order to satisfy the broadest distribution of the document possible. Consultant will perform services under this Agreement with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same or similar services. No other warranty or guarantee, expressed or implied, is made with respect to the services furnished under this Agreement all implied warranties are disclaimed. Article 1. CONTRACT TIME. The Work will be completed within 130 calendar days after the date of this agreement. The total time may be adjusted at the mutual written agreement of both City and Consultant, Article 2. CONTRACT PRICE. City shall pay Consultant for performance of the Work for Phase I in accordance with the Contract Documents the total sum (subject to adjustment as provided in the Contract Documents) of $ . Consultant recognizes that the total sum is the aggregated amount all services described in the scope of work for Phase I in Attachment A. City retains the right to a refund contingent upon unsatisfactory completion of the Work in accordance with this agreement. The total stun may be adjusted at the mutual written agreement of both City and Consultant. Article 3. PAYMENT PROCEDURES. Upon submission of monthly invoices, City shall pay Consultant for services furnished under this Agreement based on a percentage of project completion. City shall pay Consultant in U.S. dollars within thirty (30) days of receipt of invoices less any disputed amounts, If City disputes any portion of the invoice, the undisputed portion will be paid and Consultant will be notified in writing, within ten (10) days of receipt of the invoice of the exceptions taken. Consultant and City will attempt to resolve the payment dispute within sixty (60) days or the matter may be submitted to mediation as provided below. Additional charges for interest shall become due and payable at a rate of one and one-half percent (1-1/2%) per month (or the maximum percentage allowed by law, whichever is lower) on the unpaid, undisputed invoiced amounts. Any interest charges due from City on past due invoices are outside any amounts otherwise due under this Agreement. If City fails to pay undisputed invoiced amounts within sixty (60) days after delivery of invoice, Consultant, at its sole discretion, may suspend services hereunder or may initiate collections proceedings, including mediation, without incurring any liability or waiving any right established hereunder or by law. Article 4. CONSULTANT'S REPRESENTATIONS. In order to induce City to enter into this Agreement, Consultant makes the following representations: 4.1 Consultant has familiarized himself with the nature and extent of the Agreement, Work, locality, and with all local conditions and federal, state and local laws, growth policies, ordinances, rules and regulations that in any manner may affect cost, progress or performance of the Work. 42 Consultant has the experience and ability to perform the services required by this Agreement; that it will perform said 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 fonnats necessary to have these services meet this warranty. Article S. SCOPE OF WORK The Work shall consist of the preparation of the work described as Phase I in the Scope of Services contained in Attachment "A," If City wishes Consultant to perform additional services, including performance of Phases 2 and 3, City shall so instruct Consultant in writing. The performance, cost, and time frame of the additional services shall be subject to mutual written agreement of both City and Consultant. City shall provide to Consultant in a timely manner any information the City retains that Consultant indicates is needed to perforrn the services hereunder. Consultant may rely on the accuracy of information provide by City and its representatives. Article 6. CHANGES/AMENDMENTS This Agreement may not be changed except by written amendment signed by the Parties. The level of effort, schedule and payment required to complete Phase I of the Scope of Services is reflected herein. Services not expressly set forth in this Agreement or its exhibits are excluded. Consultant shall promptly notify City if changes to the Scope of Services that affect the schedule, level of effort or payment to Consultant are necessary, and if the City agrees to the changes in writing, the schedule and payment will be equitably adjusted. If Consultant is delayed in performing its services due to an event beyond its control, including but not limited to fire, flood, earthquake, explosion, strike, transportation or equipment delays, act of war or act of God, then the schedule or payment under the Agreement shall be equitably adjusted, if necessary to compensate Consultant for any additional costs due to the delay. Article 7. INSURANCE Consultant agrees to obtain prior to commencing work and to keep in force during the entire period of this Agreement professional liability insurance and such general liability insurance as will protect it and the City from claims, including claims under worker's compensation and other employee benefit laws that are applicable, for bodily injury and death, and for property damage that may arise out of work under this agreement whether directly or indirectly by Consultant, or directly or indirectly by sub-contractors hired by Consultant. Minimum liability limits shall not be less than $1.0 million commercial general liability and $LO million automobile liability. Consultant shall provide proof of workers compensation insurance at the State of Montana statutory limits, unless Consultant provides an exemption from the State Department of Labor & Industry. The City has the right to require that the City be named as an additional insured on a non-contributory basis under said insurance coverage. Article S. INDEMNITY Consultant hereby agrees to defend, hold the City and its employees and officials harmless and indemnify and the City, its employees and officials, for any and all claims, lawsuits or liability including attorneys' fees and costs allegedly arising out of loss, damage or injury to person, that arise from the negligent perfon of the Consultant's work herein described. The obligations of the Consultant to indemnify and hold harmless the City of Bozeman will apply to any suit, cause of action, claim, loss, cost or obligation including, without limitation, those alleged under the common law or pursuant to a federal or state statute or regulation including those arising from the negligent acts, errors or omissions of the Consultant. The indemnity required herein shall not be limited by reason of the specification of any particular insurance coverage in this Agreement, Article 9. SAFETY AND SECURITY Consultant has established and maintains programs and procedures for the safety Of its employees. Consultant specifically disclaims any authority or responsibility for job site safety and safety of persons other than Consultant's employees or sub - contractors. Consultant shall not provide any such services and disclaims any responsibility under this Agreement related to site security or the assessment, evaluation, review, testing, maintenance, operation or safety practices or procedures related to security. V.1VM.r41_t1A_t0 UAV-P1, 10 1100 Consultant acknowledges that the services rendered under this Agreement shall be solely as an independent contractor. Consultant shall not enter into any contract or commitment on behalf of City. Consultant further acknowledges that it is not considered an affiliate or subsidiary of City, and is not entitled to any City employment rights or benefits. To the extent that Consultant's Work includes any work of authorship entitled to protection under the copyright laws of the United States or elsewhere, the parties agree that: Consultant's Work has been specially ordered and commissioned by the City as a contribution to a collective work, a supplemental work, or such other category of work as may be eligible for treatment as a "work made for hire"; Consultant is an independent contractor and not an employee, partner, joint author or joint venturer of the City; Consultant's Work shall be deemed to be a "commissioned work " and a "work made for hire " to the greatest extent possible under the law; and the City shall have the right to use, execute, reproduce, display, perform, distribute internally or externally, and prepare derivative works of the Consultant's Work. To the extent that Consultant's work is not properly characterized as a "work made for hire," then Consultant shall, at its own expense, cause the City to have and obtain the right and license to use, execute, reproduce, display, perform, distribute internally or externally, and prepare derivative works based upon all such works and derivative works thereof .and shall provide to the City a written license granting the City such rights. It is the intent of the parties that the specific work subject to said license shall be comprised of text, illustrations, calculations, photographs, and all other works Consultant copies that may belong to third parties for which license for use is required. If City changes or uses the Work Products other than as intended hereunder, (a) City does so at its sole risk and discretion; (b) Consultant shall not be liable for any claims or damages resulting from the change or use of the Work Products; and (c) City shall indemnify, defend and hold Consultant harmless from any and all claims or damages related to the change or mis- directed use. Article 12. NO CONSEQUENTAL DAMAGES In no event and under no circumstances shall Consultant be liable to City for any principal, interest, loss of anticipated revenues, earnings, profits, increased expense of operation or construction, loss by reason of shutdown or non - operation due to late completion or otherwise for any other economic, consequential, indirect or special damages. Article 13. OFFICE RULES/ CONFIDENTIALITY Consultant shall comply with all office rules and regulations, including security requirements, when on City premises. Certain data provided by the City pursuant to this Agreement may contain information regarding third parties the City determines to be confidential in nature. Prior to releasing any data that has been marked or identified as confidential by the City, the Consultant shall confer with the . e City regarding whether any data must be protected as confidential under Montana or federal law. Article 14. CONFLICT OF INTEREST Consultant shall not offer or give a gratuity of any type to any City employee or agent Article 15. RE-PERFORMANCE OF SERVICES If City believes any of the services provided under this Agreement do not comply with the terms of this Agreement, City shall promptly notify Consultant to permit Consultant an opportunity to investigate. If the services do not meet the applicable standard of care, it will promptly rc- perform the services at no additional cost City, including assisting City in selecting remedial actions. If City fails to provide Consultant with prompt notice of non-compliance and an opportunity o investigate and re-perform, its services, Consultant's total obligation to City will be limited to the costs Consultant would have incurred to re-perform the services. Article 16. NONDISCRIMINATION The Consultant will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. In addition, the Consultant agrees not to discriminate in fulfillment of this Agreement on the basis of race, color, religion, creed, sex, age, marital status, national origin or actual or perceived sexual orientation, gender identity or disability. The Consultant agrees this requirement shall apply to the hiring and treatment of the Consultant's employees and to all subcontracts The Consultant 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. The Consultant shall require these nondiscrimination terms of its sub- consultants providing services under this Agreement. Article 17. TERMINATION Any party may terminate this Agreement upon thirty (30) days prior written notice to the other Party. City shall pay Consultant for all services rendered to the date of termination plus reasonable expenses for winding down the services. If any Party defaults in its obligations hereunder, the non-defaulting Party, after giving seven (7) days written notice of its intention to terminate or suspend performance under the Agreement may, if cure of default is not commenced and diligently continued, terminate this Agreement or suspend performance Linder this Agreement. Article 18. GOVERNING LAW This Agreement shall be construed and enforced in accordance with the laws of the State of Montana. In the event of dispute regarding the terms of this Agreement, the parties agree to attempt mediation of the conflict prior to pursuing litigation. Venue shall be in Gallatin County, 18' Judicial District. Article 19. ENTIRE AGREEMENT AND NOTICE This Agreement contains the entire understanding of the parties and may not be amended without the specific written consent of Troth parties. Any notice given under this Agreement shall be sufficient if it is in writing and if sent by certified or registered mail. IN WITNESS WHEREOF, the Parties hereto have set their hands and seals the day and year first above written, By: Chris A. 1 1,. Manager ATTEST $� w c r, ;�n,'Cit� t Attachments - Exhibit A — Scope of Services and Schedule IWi #' This Scope of Services is for SAIC (formerly R, W, Beck) to complete a solid waste services and rate design project, with an optional operations review, for the City of Bozeman, Montana (City). Listed below are the key tasks to be accomplished by our project team during the conduct of this study. We have organized this scope of services into three phases: (1) Cost of Service and Rate Design. () Collection Operations Review and (3) Optional In- Person Meetings. SAIC understands that the City will authorize SAIL to complete Phase 1, with Phase 2 and Phase 3 being authorized at a later time as requested by the City. r M.11512UNIZURM =1 I .`. Establish a Project Task Farce Completion of a solid waste system financial review requires input from multiple staff within the City. In order to get the best inforination possible and increase buy -in for the outcomes of this project, we recommend that the City establish a Project Task Force (PTF) to participate throughout the process, The PTF would ideally include 4-6 representatives from diverse roles and levels of responsibility within the City. While the final make -up of the PTF can be discussed upon project initiation, possible participants may include:: 11 Assistant City Manager Public Services senior managers Finance Director Key managers from the various collection operations The PTF would participate in the kick -off conference call, help facilitate data collection, provide feedback on preliminary findings during working sessions, and provide support to our Project Team throughout the project. By involving a variety of individuals with a wide range of skills and responsibilities, a more complete picture of the solid waste system can be developed more quickly. The diverse experience and concerns of the participants will help identify problem areas and contribute meaningful input to the solutions. Full participation from the PTF members should also be expected to increase buy -in and would speed implementation of the project findings. A -1 m SAIC Energy, Environment & Infrastructure, LLC Request for Information Approximately five working days following receipt of the Notice to Proceed, SAIC will provide the City with a preliminary data request that encompasses data needs for completing Phase 1 of this Scope of Services. The data request will itemize information needed for understanding the financial and operating characteristics and cost drivers of the entire solid waste system. At a minim the following information will be required: ® Prior planning, feasibility, and rate studies conducted by City staff or outside consultants Solid waste ordinances and policies, including rate structures ® Audited annual reports for the previous three fiscal years • Budget vs. actual for the previous three fiscal years • Budget for the current fiscal year • Bond covenants and payment schedules for any outstanding solid waste bonds Organizational charts and reporting relationships for the Solid Waste Division ® Field personnel rosters and salary information for solid waste staff ® Vehicle and equipment costs and inventories, including delineation of active and spare vehicles Solid waste billing data (e.g., customer counts, container sizes) and tonnage data Historical and projected capital expenditures Projections made by City staff as to customer growth Fund balances Review Existing Information During preliminary discussions with City staff, the City has provided an initial set of data. SAIC has conducted a preliminary review of the data, and we believe that we will be able to complete our review in an efficient manner. After initiating the project and receiving all of the requested data, we will conduct a formal review of the data to gain a better understanding of the existing system. This will enable us to develop a list of questions for the kick -off conference call and allow us to develop a draft recommendation for the cost centers to be used in the cost of service analysis. SAIC will also prepare summary worksheets for discussion with City staff related to the cost of service analysis (Task 1B }. Dick -off' Conference Call SAIC will conduct one or two conference calls to kick -off the project and hold in -depth discussions with City staff related to the allocation of personnel and resource. The calls) will be designed to accomplish several objectives, including: • Introduce members of the SAIC Project Team • Develop a further understanding of the key financial and operational issues for the Study A -2 ® SAIC Energy, Environment & Infrastructure, LLC Exhibit A I Scope of Services and Schedule w, s „w.0 v. vim i,'i .�«fu.,� rvnia'✓,.n,. /A /- v�INl,n b ✓.� �yH,ti+l vAV. rxr.A ✓ . ui,eu w. n. u!',v ..RAI. ,i i;,: i. t_ i 2!:...v ,� r,, ', in,a en.S, LLa e.�p„.✓ .i .,. z . a,.�ri^,.mr; Discuss and finalize the cost centers for the Cost of Service Study Preliminary discussion of "test year” budget adjustments Preliminary discussion of personnel and equipment allocations ® Review request for information and clarify any data, if needed One critical component of the kick -off conference call is to understand and document what the City wants to accomplish with this study. In addition, the key questions and concerns with the current solid waste rate structures and cost of service methodologies will be addressed. SAIC will send the City agendas and worksheets prior to the call. The City will be responsible for hosting the conference call or web meeting. At the conclusion of the call(s), SAIC will prepare a summary of the key issues discussed. Additional Data Request The kick -off meeting will help identify and develop consensus about those project issues or practices that need further analysis as part of the study. Based on the feedback received at the kickoff meeting, we anticipate issuance of a secondary data request to supplement the preliminary data request. The secondary data request would be provided to the City along with the summary of important items discussed during the kick: -off meeting. We recognize that the City may not have all information requested readily available or may track information differently than as requested. We will work with the appointed City staff to arrive at reasonable substitutes for the key data, if needed. `cask 1A l elliverable,s Prelitinary data request One to two conference calls (kick -off meeting and preliminary data discussions) Conference call agenda, handouts, and follow -up summary Secondary data request A "Test Year" is a common term in rate studies that refers to an adjusted fiscal year budget that is used as a basis for setting rates. The Test Year should be representative of typical conditions, with adjustments for any unusual or one -time expenses. Any projected non - recurring expenses or revenues will be identified and incorporated into the financial forecast. SAIL will work with the City to develop an accurate Test Year revenue requirement reflecting the revenue required to meet all operating and maintenance (O &N1 costs, debt service (including coverage and reserve requirements), working capital requirements, and capital expenditures. The development of the solid waste revenue requirement is affected by both internal and external influences. Two examples of internal influences include a policy to maintain a certain level of operating A. -3 w SAIC Energy, Environment & Infrastructure, LLC ExNbit A Scope of Services and Schedule reserve funds or a policy to provide service to other City departments without charge. An example of an external influence is the existence of mandatory bond covenants, such as debt service coverage requirements or restricted reserve requirements. We will examine the City's financial policies and goals to meet these internal influences and review existing bond covenants and agreements to ascertain the City's external influences. From this examination and review, parameters will be established within which the revenue requirement will be determined. The goal of this task will be to document the current full cost of the City's various solid waste services and to allocate these costs to the appropriate cost centers. .Further, within each cost center, this task allows for an evaluation of the appropriateness of the current rate structure. As part of this task, SAIC will: f Review current and historical financial data collected as part of Task IA • Summarize and analyze the current solid waste fees • Develop a revenue requirement for the "Test Year," which will include, but is not limited to, the following types of costs: a Operational and maintenance X General fund and administrative overhead 3 Capital costs M Current and anticipated long --term liabilities and debt obligations Work with the City to define cost centers: Cost centers will be based on the primary services provided by the Solid Waste Division. A preliminary listing of cost centers would include but not be limited to Administration, Rcsidential Refuse, Residential Recycling, Commercial Dumpster, Commercial Roll -off Cost centers might also include service to certain customer classes (e.g., those located away from other City customers). However, in order for SAIC to include these additional cost centers, the City will need to have an understanding of the amount of personnel and equipment used to provide service to these customers. ® Work with the City to identify the components and measurements that will be built into the cost allocation model Develop an infrastructure and vehicle replacement analysis to account for growth and replacement m Assist the City in developing or modifying a cost allocation strategy that captures capital, debt, operations, and maintenance costs, as well as indirect costs (administration and overhead) for each of the targeted services a Allocate cost centers to customer classes' Customer classes will include residential and commercial customers and may include other customer groups, city departments, etc. as determined during the course of the study. A -4 a SAIC Energy, Environment g Infrastructure, LLC Exhibit, A I Scope of Services and Schedule N Determine billing units W Calculate the cost of service For equipment and personnel that serve more than one function, we will assist City staff in the development of an appropriate strategy to allocate those costs among the programs being evaluated. It will be imperative to work closely with financial and operational personnel during the cost allocation process to ensure that all direct and indirect costs are apportioned in an appropriate and meaningful way among the programs being evaluated. A brief written summary of our approach and observations about cost allocation will be included in the draft report. 'ask 1B Deliverable • A Test Year revenue requirement • Calculation of the Test Year cost of service • Conference call with City staff to discuss results of Task 113 Task I C: Forecasted Cost of Service Analysis In addition to calculating the current cost of service for the Test Year, SAIC will project the future cost of service for a five -year time frame and will allocate these costs to the appropriate cost centers. SAIC will work in conjunction with the City to develop an accurate five -year revenue requirement and billing unit forecast. In order to develop the five -year revenue requirement for the City, SAIL will examine historical budgets and audited financials and, utilizing input from City staff, will develop a forecast that incorporates "known and measurable" changes for the forecasted period. This would include changes due to any current: or anticipated statutory regulations. SAIC will analyze the assumptions used in projecting the revenue requirement and billing units, including but not limited to growth rate, inflation rates, increase in contractual obligations, and capital improvement plans. Task I C Deliverable 0 A "base case" five -year revenue requirement forecast a The calculation of the cost of service in each year 19 Meeting with City staff to discuss results of Task 1C Task ID: Determine ►; Rate Design This task will include two primary objectives: (1) to determine currcnt revenue generation from solid waste utility operations; and (2) to update the fee structure, if necessary, so that it will be sufficient to recover the cost of service in an equitable manner. A-5 SAIC Energy, Environment & Infrastructure, LLC Exhibit A ( Scope of Services and Schedule Determine Current Revenue Generation SAIL will evaluate how much revenue is currently generated by the current fee structure. We will assess the overall revenue requirement compared to revenue generated under the current fee structure and rates. We will complete this analysis based on a review of revenue received by the City for the various services provided. We will independently estimate how much revenue, should be generated by the current billing units and current rates. This analysis will provide the City with an understanding of how current rates are either over- or under - recovering compared to the cost of service for each customer class.. Rate Design Successful rate design requires a significant amount of judgment and drill to balance the cost of service results with the rate design objectives. SA1C will address the formulation of a rate design plan with a clear and distinct understanding of the City's overall goals and objectives. The City's goals and objectives should serve as the foundation for the development of rate options as rate design enables the City to meet its service pricing objectives. Pricing objectives could include, but would not be limited to: • Cost of service recovery • Revenue stability • Cost containment • Adequate solid waste enterprise funding • Align with market rates • Economic development SAIC bases its rate design recommendations on the following principles: ® Meeting Revenue Requirements in a. Stable and Predictable Manner — Regardless of the outcome of the rate design process, rates trust produce sufficient revenues to meet both the short -temi and long -term financial needs and business objectives of the City. Equity and Fairness — To the greatest extent possible, rate design will be based on cost of service principles and will not unduly subsidize certain customers or rate classes at the expense of others. Behavior Modification — Simply put, rates send pricing signals to customers. These pricing signals should promote efficient use of the City's resources and increase customer understanding of the cost associated with the various products and services provided by the City. For example, we will collaborate with City staff to evaluate pricing options concerning variable rates for residential cart customers (i.e., rate distribution for 35, 65, or 95 gallon cart customers). Simple and Understandable — From a public relations perspective, simple and easy to understand rate structures are a benefit in that the City will be able to clearly communicate the relationship between the cost of service and customer use. A -6 is LAIC Energy, Environment & Infrastructure, LLC Exhibit A Scope of Services and Schedule Further, SAIC is knowledgeable with regard to statutory regulations affecting cost of service and rate development and will design rates accordingly. We will work with City staff to evaluate the City's current fees and discuss the merits of various alternative fee structures. Task I D Deliverables An analysis of current revenue generation A Five -year forecast of recommended rates Conference call to discuss findings with. City staff Task I E: Report and Presentation tation [raft Deport Upon completion of the analyses outlined above, SAIC will develop a draft report outlining prelimin recommendations and conclusions. SAIL is committed to making sure the City thoroughly understands the recommendations in the draft report. Our report will include the following. ® An overview of the City's solid waste utility A methodology section, which defines the basic assumptions utilized in the analysis and describes the rate design philosophy and methodology Recommendations on rates as well as policy issues that arise, which will be determined throughout the course of this analysis and discussed with City staff SAIC will provide the findings to the City staff and allow these individuals sufficient time to have their concerns and /or questions addressed. SAIC will have a conference call with City staff to discuss the report. SAIC would request that written comments be provided as one submittal from City staff to ensure consensus regarding staff comments. itroal Repoi t Upon receipt of City staff recommendations and comments, SAIC will make appropriate changes and provide the City with a final report. We will issue the final report within three weeks of receiving comments from the City. Develop PowerPoint Our Project Manager will coordinate with City staff to develop PowerPoint slides that are consistent with the Executive Management and City Council's expectations for these types of presentations. Our budget assumes that SAIC will develop the PowerPoint, but does not include any meetings with the City. Phase 3 discusses the additional cost of in- person meetings or presentations. "' 14 One electronic version of the draft report A -7 n SAIC Energy, EnOronment & Infrastructure, LLC Exhibit A Scope of Services and Schedule a One conference call to discuss the draft report a Six printed and one electronic version of the final report a PowerPoint presentation summarizing objectives, methodology, findings and recommendations During the collection operations review, SAIC will conduct a "high - level' review the residential refuse, residential recycling, corninercial dumpster and commercial roll -off operations. This "high - level" review includes limited field observations, a review of City- provided data and subsequent analysis of the data. Due to the limited nature of the field observation, SAIC will not collect extensive data in the field and instead the analysis will rely on data available from the City. The objective of this Phase will be to provide the City with key findings and recommendations of the existing collection operation. Task : Project Initiation and Management SAIC will rely on the same Project Task Force as identified in Task lA of Phase 1. Approximately five working days following receipt of the Notice to Proceed for Phase Z, SAIC will provide the City with a preliminary data request that encompasses data needs for completing this Scope of Services. The data request will itemize information needed for understanding operating characteristics and cost drivers of the entire solid waste system. SAIC will rely on information gathered in Phase 1, but will require additional information such as: m Vehicle and equipment maintenance practices 91 Current routes and routing methodology Approximate allocation of work day for each collection type (e.g., breaks, travel times to landfill, travel times to /from yard, on -route collection time, etc.) Time spent and resources utilized delivering and picking up containers from new customers or former customers a Historical operating and productivity data for the collection operations Review Existing Information After initiating the project and receiving all of the requested data, we will conduct a initial review of the data to gain a better understanding of the existing system. This will enable us to develop a list of questions for the kick -off meeting and field observations. SAIC will conduct an on -site kick -off meeting with all relevant City staff stakeholders. The meeting will be designed to accomplish several objectives, including: A -8 w SAIC Energy, Environment & Wrostructure, LLC Exhibit A ( Scope of Services and Schedule • Indentify key operational issues • Develop a further understanding of the key operational issues for the Study • Review request for information and clarify any data, if needed • Interview key operations staff (after conclusion of the group meeting) We expect the kick -off meeting to last approximately two to four hours. SAIL will provide copies of the agenda and any handouts. The City will be responsible for identifying and reserving an appropriate meeting location. At the conclusion of the kick -off meeting, SAIL will prepare a summary of the key issues discussed. The kick-off meeting with occur on the same trip as the field observations that will be conducted during Task 22B. 'ask. 213: Field Observations and Analysis For this task, SAIL will conduct limited field observations and analyze the information collected, including data collected during Phase 1, to evaluate the overall operational efficiency of the City's four primary collection operations. Field Observations Field observations allow us to obtain a true feel for the challenges faced, productivity levels achieved, successes, and areas needing improvement. As part of this task, SAIL will perform field observations of the various collection operations. Our project budget includes two person -days of field observations occurring during the same trip as the kick -off meeting, We will spend this dine observing key collection operations. Conducting this limited review of the collection operation will provide SAIL a better sense of the operational challenges faced by the City and will enable us to focus on the key issues during the review of the data. Operational Evaluation Using the data collected from the field observations and the data requests, SAIL will examine the City's collection system to provide the City an overview assessment of its collection program. Aspects of each of the four primary collection programs to be reviewed will be limited to the following:. • Collection efficiency (e.g. number of houses collected per route) • On -route collection practices • Non - collection time (travel, down time, breaks, etc.) • Staffing, including use of overtime and temporary personnel • Configuration of equipment and containers • Vehicle maintenance IN Key policies and procedures Utilization of operational reports (daily driver logs, etc.) A -9 m SAIL Energy, Environment & Infrastructure, LLC .�- , _ , Taiw Recycling- Specific lssucs In additional to evaluating the issues list above, SAIC will also examine the following issues related to the City's curbside recycling program:. • Subscription rate • participation rate Set -out rate Recycling quantities RMR 0 For each collection operation, SAIC will include an overall routing evaluation. The routing analysis will include an evaluation of the routing process and an evaluation of the City's current routes. SAIL will rely on GIS information provided by the City for this analysis. SAIC's analysis will include the following aspects of the current routes: • Days of service • Number of homes /businesses per route • Collection areas serviced each day 0 Route start /finish times Once SAIC evaluates the current routes, we will develop key findings regarding the effectiveness of the current routes and provide recommendations for any potential changes. Recommendations may include identifying the need to develop new route areas using GIS data or purchasing a routing software product. For each collection operation, SAIL will provide the City with a concise assessment of how competitive the operation is relative to other efficient public and private sector operations. To the extent that there is a need for operational improvements, SAIL will provide the City with summarized key findings and recommendations. The business strategy will summarize how the City should grow each of the collection operations in the future. For example, SAIC may provide recommendations regarding how the City could develop a marketing and education plan increase customers' awareness of City services. The end of this phase includes a conference call that includes discussion of the business strategy options. r M Upon completion of the analyses outlined above, SAIC will develop a draft report provides an overview with key findings and recommendations for each of the collection operations (e.g. residential refuse, residential recycling and commercial). SAIC will have a conference call with City staff to discuss the report, A -10 ® SAIC Energy, Environment & Infrastructure, LLC Exhibit A Scope of Services and Schedule including the business strategies. SAIC would request that written comments be provided as one submittal from City staff to ensure consensus regarding staff comments. MEMMM Upon receipt of City staff recommendations and comments, SAIC will make appropriate changes and provide the City with a final report. We will issue the final report within three weeks of receiving comments from the City. r Our Project Manager will coordinate with City" staff to develop PowerPoint slides that are consistent with the Executive Management and City Council's expectations for these types of presentations. Our budget assumes that SAIC will develop the PowerPoint, but does not include any meetings with the City. Phase 3 discusses the additional cost of in-- person meetings or presentation. Both Phase 1 and Phase 2 include discussion of final phase deliverables via conference call„ At the City's request, SAIC will conduct in- person meetings or presentations. The cost for an in- person meeting or presentation in place of a conference call is $1,700. The cost for are in- person meeting in addition to the conference calls included in the scope is $3,250. These costs accounts for labor and expenses for one consultant. The following is a timeline for the completion of Phase 1 of the project. The project schedule is based on submitting the Draft Report for the cost of service study within 120 days after receiving the Notice to Proceed (NTP) from the City. The Final Report for the cost of service study will be submitted to the City within three weeks of receiving comments from the City. A -11 . SAIC Energy, Environment & Infrastructure, LLC Exhibit A Scope of Services and Schedule rJ- r SAIC has developed a fee estimate for the services described in the Scope of Services. The fee estimate is based on the following billing rates. To the extent that there is a need to provide additional services beyond this scope of services, they will be provided on these billing rates. These hourly rates are in effect throtngh ,March 31, 2011 A -12 r SAIL (Energy, Environment & Infrastructure, LLC Exhibit A Scope of Services and Schedule Phase 1: Cost of Service and Rate Design Study $5,000 Task 1A: Project Initiation and Management $4,000 Establish a Project Task Force $0 Request for Information $700 Review Existing Information $2,000 Kick-off Conference Call $2,100 Additional Data Request $600 Task 1B: Current Cost of Service Analysis $13,500 Task 1 C: Forecasted Cost of Service Analysis $5,300 Task ID: Determine Current Revenue and Rate Design . ... ....... $7,500 Task 1E: Report and Presentation Draft Report $4,000 Final Report $2,200 Develop PowerPoint . .. ... . ... .. $1,900 Phase 1 Total .. . . ........ $39,800 Phase 2: Collection Operations Review Task 2A: Project Initiation and Management Request for Information . ........ . .... .. $700 Review Existing Information $2,000 On-Site Kick-off Meeting $5,100 Task 2B: Field Observations and Analysis Field Observations and Interviews $4,600 Residential Refuse Evaluation $3,000 Residential Recycling Evaluation $2,400 Commercial Front Load Evaluation $3,000 Commercial Roll-off Evaluation .. .. . ......... . .. ... $2,400 Task 2C: Routing Evaluation $5,000 Task 21): Business Strategy $4,000 Task 2E: Report and Presentation Draft Report $4 ,000 Final Report $2,200 Develop PowerPoint . . . . ... ....... ..... . $1,900 Phase 2 Total $40,300 Phase 3: Optiona In-Person Meetings /Presentations In Place of Conference Call $1,800 In Addition to Conference Call $3,200 A-13 SAIL Energy, Environment & Infrastructure, LLC