RPVCCA_CC_SR_2014_03_18_E_PSA_Residential_Svcs_Audit_Edco_UWSCrrYOF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: MICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORKS t(Q
DATE: MARCH 18, 2014
SUBJECT: PROFESSIONAL SERVICES AGREEMENT TO CONDUCT
RESIDENTIAL SOLID WASTE SERVICES PERFORMANCE
AUDITS OF EDCO DISPOSAL CORPORATION AND
UNIVERSAL WASTE SYSTEMS, INC. (Supports 2014 City
Council Goal of Government Efficiency, Fiscal Control and
Transparency)
REVIEWED: CAROLYNN PETRU, ACTING CITY MANAGE~
Project Manager: Lauren Ramezani, Senior Administrative Analyst ~
RECOMMENDATIONS
1. Adopt Resolution 2014-_,A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2013-43, THE BUDGET
APPROPRIATION FOR FISCAL YEAR 2013-14, FOR A BUDGET ADJUSTMENT
TO THE PROFESSIONALffECHNICAL SERVICES WITHIN THE CITY'S WASTE
REDUCTION FUND; and
2. Award a professional services agreement to Stearns, Conrad and Schmidt,
Consulting Engineers, Inc. (SCS Engineers), in an amount not to exceed $61,710 to
conduct Integrated Residential Solid Waste Services Agreement Performance
Reviews/Audits of EDCO Disposal Corporation and Universal Waste Systems, Inc.;
and Authorize the Mayor and City Clerk to execute a professional services
agreement.
BACKGROUND
The City has exclusive single-family and multi-family residential solid waste and recycling
agreements with EDCO Disposal Corporation (EDCO) for 95% of the City and Universal
Waste Systems, Inc. (UWS) for the remaining 5% of the City, concentrated in the coastal
and landslide areas. The agreements commenced on July 1, 2010 and will terminate on
June 30, 2017. Each agreement has an extension option at the City's sole discretion of
up to 36-months.
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EDCO/UWS Residential Services Audits
March 18, 2014
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DISCUSSION
The EDCO and UWS residential agreements include a performance "Audit" section (see
attached copies of Section 8.2.6 of each agreement), where the hauler agrees to
reimburse the City for the cost of such an audit up to $60,000 each for the first audit.
Accordingly, the cost of the audit is accounted for in the waste rates. As a result, there
would be:
1. No pass-through of the audit costs to customers (i.e. no extraordinary
adjustments),
2. No negative impact or influence on future annual rate adjustment requests, and
3. No City funds would be used for this audit.
There is no known indication that either hauler is not in full-compliance with their
agreement. However, as a matter of prudent fiscal control, accountability and
transparency, conducting this performance audit is recommended by staff.
Requests for Qualifications (RFQ) were sent to five qualified firms seeking a consultant
to conduct Integrated Residential Solid Waste Services Agreement Performance
Reviews/Audits of EDCO and UWS including the three areas of: Operations, Customer
Service and Financial. This scope of the RFQ is exclusive to residential services which
include single-family accounts and multi-family bin accounts. A separate audit will be
performed for each hauler. Both audits would cover the same scope of work, and a
report will be generated for each hauler. The scope does not include any commercial roll
off or business bin activity. Those activities are covered under separate non-exclusive
agreements with eight haulers.
The audits review period is for three fiscal years, from July 1, 2010 until July 1, 2013.
The proposed scope of work includes:
1. Task "A". Operations-Conduct a route audit by sampling EDCO and UWS'
residential collection services. This includes verifying: operation hours, delivery
and proper disposal of material to approved designated facilities, vehicles and
routes, EDCO and UWS' quarterly and annual reports for tonnage report accuracy
and completeness, and conformance with diversion requirements.
2. Task "B"-Customer Service-Review customer services operations. This includes
reviewing: proper complaint documentation and resolution within the allowable
timeframe, and public outreach and education material.
3. Task "C"-Financial-Verify that EDCO and UWS are fulfilling the financial terms of
their agreements. This includes verifying: accuracy of customer billing records
and rates for single and multi-family accounts, quarterly payments (Collector Fee,
Environmental Fee and Recycling Rebate) to the City, monthly Recycling
Credits/Rebates offered customers (starting January 2013), FY 13-14 rate
adjustments, and specified insurances, bond requirements, and letters of credits.
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EDCO/UWS Residential Services Audit
March 18, 2014
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The City received proposals from two firms: HF&H Consultants, LLC (HF&H), and SCS
Engineers (SCS). The firms were rated based on the following criteria: Experience of
the firm in providing similar services; Relevant experience of individual team members
assigned to the project; Understanding of the project; References from clients for whom
similar services were provided; Previous services provided to the City of Rancho Palos
Verdes by the firm and/or team members assigned to the project; Previous services
provided to other clients on the Palos Verdes Peninsula; and Appropriateness of project
schedule.
Both firms and/or their staff are highly qualified, and are well known and respected in the
solid waste industry. They have performed many performance audits and in the past
decade, they have each provided consulting services for RPV on different solid waste
related projects or programs for various lengths of time. As a result, they both can
provide excellent services related to these performance audits.
After reviewing the two proposals, SCS Engineers was determined to be the more
qualified firm to complete the tasks as needed by the City. The City's current residential
collection agreements which includes the performance audit provisions with EDCO and
UWS, were prepared by HF&H. SCS Engineers would be able to offer a more objective,
and an impartial third party view of the haulers performances and conformance to their
agreements and requirements (or lack of). Furthermore, SCS has teamed up with
another highly reputable solid waste consulting firm, MSW Consultants. As a result, the
City would be able to utilize the knowledge and expertise of both firms and their
personnel for these performance audits.
PERFORMANCE AUDIT COSTS-It is recommended to award a professional services
agreement to SCS Engineers for the total not to exceed amount of $61,710, which was
negotiated after the proposal rating and evaluation process was completed. This would
be the total costs for auditing both haulers. The audit costs are not equally divided
between EDCO and UWS. EDCO's share of the costs for the performance audit is
estimated not to exceed $46,280 (3/4th of total), while UWS' share due to their smaller
territory is estimated not to exceed $15,430 (1/4th of total). Although UWS has a
substantially smaller service area and fewer customers, there are certain fixed costs
associated with the audit that cannot be prorated by the number of customers.
The SCS Engineers' cost proposal is less than the total of $120,000 for two haulers (i.e.
the amount of $60,000 for each) as outlined in their agreements performance audit
section. This difference was expected because the amount noted in each agreement
was an estimate in case of the need for an extensive performance audit due to
substantial financial and service/operational issues with a hauler.
The scope of the audit addresses the relevant and important areas in residential refuse
collection services for the City and the residents. The review of SCS Engineers' reports
should determine the extent to which EDCO and UWS have each complied with the
provisions of their respective franchise agreements. The audit is estimated to take three
(3) months, and the results would be reported back to the City Council at a future regular
meeting.
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EDCO/UWS Residential Services Audits
March 18, 2014
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FISCAL IMPACT
The cost of the audit is not to exceed $46,280 for EDCO and $15,430 for UWS, for a
total cost of $61,710. EDCO and UWS will each reimburse the City for the costs
incurred. Therefore, no City funds would be used for the audits and there will be no
pass-through of costs to customers.
The current FY 13-14 City budget does not have a budget authorization for the audits
and it is requested to include this expenditure and the corresponding revenue in the
Waste Reduction Fund budget. The net impact to the current budget is $0. Therefore, it
is recommended that the City Council adopt the attached budget appropriation resolution
in the Waste Reduction Fund.
Attachments: Resolution 2014-
EDCO and UWS Sections 8.2.6, Performance Audit
Professional Services Agreement (including RFQ, Proposal, & Cost)
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RESOLUTION NO. 2014-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, AMENDING RESOLUTION 2013-43,
THE BUDGET APPROPRIATION FOR FISCAL YEAR 2013-14, FOR
A BUDGET ADJUSTMENT TO THE PROFESSIONAU TECHNICAL
SERVICES WITHIN THE CITY'S WASTE REDUCTION FUND
WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides
that all expenditures in excess of budgeted allocations must be by supplemental
appropriation of the City Council; and
WHEREAS, on June 18, 2013, the City Council of the City of Rancho Palos
Verdes adopted Resolution 2013-43, approving a spending plan and authorizing a
budget appropriation for the 2013-14 fiscal year; and
WHEREAS, the City of Rancho Palos Verdes desires that the budget
appropriation for FY 2013-14 Waste Reduction Fund be increased; and
WHEREAS, a budget increase in the Waste Reduction's Professional/
Technical Services Program is necessary to authorize the expenditure of additional
funds to conduct the Integrated Residential Solid Waste Services Agreement
Performance Reviews/ Audits of EDCO Disposal Corporation and Universal Waste
Systems, Inc.;
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
The following adjustment(s) be made to the following Fund(s):
213-3013-369-1 0-00
213-3013-431-32-00
Misc. Revenue
Professional/Technical Services
Verified by Finance: __ l{,6 __ _
$61,710
$61,710
PASSED, APPROVED, AND ADOPTED THIS 18th DAY OF MARCH 2014.
MAYOR
ATTEST:
CITY CLERK
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State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify
that the above Resolution No. 2014-_was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof held on March 18, 2014.
CITY CLERK
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readily and easily interpreted. The requirements of this section shall survive the
expiration of the Term.
8.2.5 Other Programs' Records
Records for other programs shall be tailored to specific needs. In general, they shall
include:
a) Plans, tasks, and milestones; and,
b) Accomplishments in terms such as dates, activities conducted, quantities of
products used, produced or distributed, and numbers of participants and
responses.
8.2.6 Audit
City may conduct an audit of Contractor at any time. The scope of the audit, and
auditing party, will be determined by City and the scope may include, but is not limited
to, compliance with terms of this Agreement, Customer service levels and Billing, fee
payments, Gross Receipts, tonnage, and verification of Diversion rate. The first audit, to
be performed during 2012, will be based on the Contractor's reports and records from
July 1 2010 through calendar year 2011. Audits will be performed every third year
thereafter, (e.g., the audit performed during 2015 will be based upon revenue from
calendar year 2014). Contractor will reimburse to the City the cost of such audits
(including audits conducted by City staff) up to $60,000 for the first audit, and $25,000
for each subsequent audit in 2012 dollars. The $25,000 amount shall be increased
annually by the change in CPI using the formula for the change in the service
component of the rates in Section 6.4. Costs incurred by Contractor for conducting its
own route audits, as required under this Agreement, are not included as part of this
audit cost.
Should an audit conducted or authorized by the City disclose that fees payable by
Contractor were underpaid by two percent (2%) or more, that tonnage was mis-
reported by 2 % or more, or that more than two percent (2 % ) of the Customers were
inaccurately billed based on the auditor's sampling, for the period under review, City
may expand the scope of the audit and also recover additional audit costs from the
Contractor.
December7, 2009 t?DCO -87-City of Rancho Palos Verdes-EDCO
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8.2.S Other Programs' Records
Records for other programs shall be tailored to specific needs. In general, they shall
include:
a) Plans, tasks, and milestones; and,
b) Accomplishments in terms such as dates, activities conducted, quantities of
products used, produced or distributed, and numbers of participants and
responses.
8.2.6 . Audit
City may conduct an audit of Contractor at any time. The scope of the audit, and
auditing party, will be determined by City and the scope may include, but is not limited
to, compliance with terms of this Agreement, Customer service levels and Billing, fee
payments, Gross Receipts, tonnage, verification of weightings of cost components used
in the rate adjustment formula described in Section 6.4, and verification of Diversion
rate. The first audit, to be performed during 2012, will be based on the Contractor's
reports and records from July 1 2010 through calendar year 2011. Audits will be
performed every third year thereafter, (e.g., the audit performed during 2015 will be
based upon revenue from calendar year 2014). Contractor will reimburse to the City the
cost of such audits (including audits conducted by City staff) up to $60,000 for the first
audit, and $25,000 for each subsequent audit in 2012 dollars. The $25,000 amount shall
be increased annually by the change in CPI using the formula for the change in the
service component of the rates in Section 6.4. Costs incurred by Contractor for
conducting its own route audits, as required under this Agreement, are not included as
part of this audit cost.
Should an audit conducted or authorized by the City disclose that fees payable by
Contractor were underpaid by two percent (2%) or more, that tonnage was mis-
reported by 2 % or more, or that more than two percent (2 % ) of the Customers were
inaccurately billed based on the auditor's sampling, for the period under review, City
may expand the scope of the audit and also recover additional audit costs from the
Contractor.
June 26, 2009 U...W5 -88-City of Rancho Palos Verdes/UWS
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CITY OF RANCHO PALOS VERDES
PROFESSIONAL/TECHNICAL SERVICES AGREEMENT
THIS AGREEMENT ("Agreement") is made and entered into this day of March,
20141, by and between the City of Rancho Palos Verdes (hereinafter referred to as the
"CITY") and Stearns, Conrad and Schmidt, Consulting Engineers, Inc. (SCS
Engineers) (hereafter referred to as "CONSUL TANT").
IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto
agree as follows:
ARTICLE 1
SCOPE OF SERVICES
1.1 Project Description
The Project is described as follows:
Conduct Integrated Residential Solid Waste Services Agreement Performance
Reviews/Audits of EDCO Disposal Corporation (EDCO) and Universal Waste
Systems, Inc. (UWS);
1.2 Description of Services
CONSULTANT shall: Conduct Integrated Residential Solid Waste Services
Agreement Performance Reviews/Audits of EDCO Disposal Corporation (EDCO)
and Universal Waste Systems, Inc. (UWS), as described in the CITY's Request For·
Proposals, which is attached hereto as Exhibit "A" and incorporated herein by this
reference, and in CONSUL TANT's Proposal, which is attached hereto as Exhibit "B" and
incorporated herein by this reference. In the event of any conflict between the terms of
this Agreement and incorporated documents, the terms of this Agreement shall control.
In the event of any conflict between Exhibits "A" and "B," the terms of Exhibit "A" shall
control.
1.3 Schedule of Work
Upon receipt of written Notice to Proceed from the CITY, CONSULTANT
shall perform with due diligence the services requested by the CITY. Time is of the
essence in this Agreement. CONSULTANT shall not be responsible for delay, nor shall
CONSUL TANT be responsible for damages or be in default or deemed to be in default
by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish
timely information or to approve or disapprove CONSULTANT's work promptly, or delay
or faulty performance by CITY, other consultants/contractors, or governmental agencies,
or any other delays beyond CONSUL TANT's control or without CONSUL TANT's fault.
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ARTICLE 2
COMPENSATION
2.1 Fee
CITY agrees to compensate CONSUL TANT an amount not to exceed Sixty
One Thousand Seven Hundred Ten dollars ($61,710) for services as described in
Article 1.
2.2 Terms of Compensation
CONSULTANT shall submit monthly invoices for the percentage of work
completed in the previous month. CITY agrees to authorize payment for all undisputed
invoice amounts within thirty (30) days of receipt of each invoice. CITY agrees to use its
best efforts to notify CONSULTANT of any disputed invoice amounts or claimed
completion percentages within ten (10) days of the receipt of each invoice. However,
CITY's failure to timely notify CONSULTANT of a disputed amount or claimed completion
percentage shall not be deemed a waiver of CITY's right to challenge such amount or
percentage.
Additionally, in the event CITY fails to pay any undisputed amounts due
CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY
agrees that CONSULTANT shall have the right to consider said default a total breach of
this Agreement and be terminated by CONSUL TANT without liability to CONSUL TANT
upon ten (10) working days advance written notice.
2.3 Additional Services
CITY may request additional specified work under this Agreement. All such
work must be authorized in writing by the CITY's Director of Public Works prior to
commencement. CONSULTANT shall perform such services, and CITY shall pay for
such additional services in accordance with CONSULTANT's Schedule of Hourly Rates,
which is within Exhibit "B." The schedule of hourly rates shall be in effect through the end
of this Agreement. ·
2.4 Term of Agreement
This Agreement shall commence on March 19, 2014 and shall terminate on
upon approval of the final report by the City, unless sooner terminated pursuant to Article
4 of this Agreement.
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ARTICLE 3
INDEMNIFICATION AND INSURANCE
3.1 Indemnification
To the maximum extent permitted by law, CONSUL TANT shall defend,
indemnify, and hold the CITY, its officials, officers, employees, agents and independent
contractors serving in the role of CITY officials, and volunteers (collectively "lndemnitees")
free and harmless from any and all claims, demands, causes of action, costs, expenses,
liabilities, losses, damages or injuries, in law or equity, to property or persons, including
wrongful death (collectively "Claims"), in any manner arising out of or incident to any acts
or omissions of CONSULTANT, its officials, officers, employees or agents in connection
with the performance of this Agreement, including without limitation the payment of all
consequential damages, attorneys' fees, and other related costs and expenses, except
for such Claims arising out of the sole negligence or willful misconduct of the lndemnitees.
With respect to any and all such Claims, CONSULTANT shall defend lndemnitees at
CONSULTANT's own cost, expense, and risk and shall pay and satisfy any judgment,
award, or decree that may be rendered against lndemnitees. CONSULTANT shall
reimburse lndemnitees for any and all legal expenses and costs incurred by each of them
in connection therewith or in enforcing the indemnity herein provided. CONSULTANT's
obligation to indemnify shall not be restricted to insurance proceeds, if any, received by
CONSUL TANT or lndemnitees. All duties of CONSUL TANT under this Section shall
survive termination of this Agreement.
3.2 General Liability
CONSUL TANT shall at all times during the term of the Agreement carry,
maintain, and keep in full force and effect, a policy or policies of Commercial General
Liability Insurance, with minimum limits of one million dollars ($1,000,000) for each
occurrence and two million dollars ($2,000,000) general aggregate for bodily injury, death,
loss or property damage for products or completed operations and any and all other
activities undertaken by CONSUL TANT in the performance of this Agreement. Said
policy or policies shall be issued by an insurer admitted or authorized to do business in
the State of California and rated in A.M. Best's Insurance Guide with a rating of A:VII or
better.
3.3 Professional Liability
CONSUL TANT shall at all times during the term of this Agreement, carry,
maintain, and keep in full force and effect a policy or policies of professional liability
insurance with a minimum limit of one million dollars ($1,000,000) per claim and
aggregate for errors and/or omissions of CONSUL TANT in the performance of this
Agreement. Said policy or policies shall be issued by an insurer admitted or authorized to
do business in the State of California and rated in Best's Insurance Guide with a rating of
A:VII or better. If a "claims made" policy is provided, such policy shall be maintained in
effect from the date of performance of work or services on the CITY's behalf until three
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(3) years after the date of work or services are accepted as completed. Coverage for the
post-completion period may be provided by renewal or replacement of the policy for each
of the three (3) years or by a three-year extended reporting period endorsement, which
reinstates all limits for the extended reporting period. If any such policy and/or policies
have a retroactive date, that date shall be no later than the date of first performance of
work or services on behalf of the CITY. Renewal or replacement policies shall not allow
for any advancement of such retroactive date.
3.4 Automobile Liability
CONSULTANT shall at all times during the term of this Agreement obtain,
maintain, and keep in full force and effect, a policy or policies of Automobile Liability
Insurance, with minimum of one million dollars ($1,000,000) per claim and occurrence
and two million dollars ($2,000,000) in the aggregate for bodily injuries or death of one
person and five hundred thousand dollars ($500,000) for property damage arising from
one incident. Said policy or policies shall be issued by an insurer admitted or authorized
to do business in the State of California and rated in AM. Best's Insurance Guide with a
rating of A:VII or better.
3.5 Worker's Compensation
CONSULTANT agrees to maintain in force at all times during the
performance of work under this Agreement worker's compensation insurance as required
by the law. CONSUL TANT shall require any subcontractor similarly to provide such
compensation insurance for their respective employees.
3.6 Notice of Cancellation
(a) All insurance policies shall provide that the insurance coverage shall
not be cancelled or modified by the insurance carrier without thirty (30) days prior written
notice to CITY, or ten (10) days notice if cancellation is due to nonpayment of premium.
Additionally, CONSULTANT shall provide immediate notice to the City if it receives a
cancellation or policy revision notice from the insurer.
(b) CONSULTANT agrees that it will not cancel or reduce any required
insurance coverage. CONSUL TANT agrees that if it does not keep the aforesaid
insurance in full force and effect, CITY may either immediately terminate this Agreement
or, if insurance is available at a reasonable cost, CITY may take out the necessary
insurance and pay, at CONSUL TANT's expense, the premium thereon.
3.7 Entire Policy and Certificate of Insurance
At all times during the term of this Agreement, CONSULTANT shall maintain
on file with the CITY Clerk both a copy of the entire policy and a certificate of insurance
showing that the aforesaid policies are in effect in the required amounts. The commercial
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general liability policy shall contain endorsements naming the CITY, its officers, agents
and employees as additional insureds.
3.8 Primary Coverage
The insurance provided by CONSUL TANT shall be primary to any coverage
available to CITY. The insurance policies (other than workers compensation and
professional liability) shall include provisions for waiver of subrogation.
ARTICLE4
TERMINATION
4.1 Termination of Agreement
(a) This Agreement may be terminated at any time, with or without
cause, by the CITY upon thirty (30) days prior written notice or by CONSULTANT upon
ninety (90) days prior written notice. Notice shall be deemed served if completed in
compliance with Section 6.15.
(b) In the event of termination or cancellation of this Agreement by
CONSUL TANT or CITY, due to no fault or failure of performance by CONSUL TANT,
CONSUL TANT shall be paid compensation for all services performed by CONSUL TANT,
in an amount to be determined as follows: for work satisfactorily done in accordance with
all of the terms and provisions of this Agreement as determined by the CITY,
CONSUL TANT shall be paid an amount equal to the percentage of services performed
prior to the effective date of termination or cancellation in accordance with the work items;
provided, in no event shall the amount of money paid under the foregoing provisions of
this paragraph exceed the amount which would have been paid to CONSUL TANT for the
full performance of the services described in this Agreement.
ARTICLE 5
OWNERSHIP OF DOCUMENTS
5.1 Ownership of Documents and Work Product
All final documents, plans, specifications, reports, information, data,
exhibits, photographs, images, video files and media created or developed by
CONSUL TANT pursuant to this Agreement ("Written Products") shall be and remain the
property of the CITY without restriction or limitation upon its use, duplication or
dissemination by the CITY. All Written Products shall be considered "works made for
hire," and all Written Products and any and all intellectual property rights arising from their
creation, including, but not limited to, all copyrights and other proprietary rights, shall be
and remain the property of the CITY without restriction or limitation upon their use,
duplication or dissemination by the CITY. CONSUL TANT shall not obtain or attempt to
obtain copyright protection as to any Written Products.
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CONSULTANT hereby assigns to the CITY all ownership and any and all
intellectual property rights to the Written Products that are not otherwise vested in the
CITY pursuant to the paragraph directly above this one.
CONSULTANT warrants and represents that it has secured all necessary
licenses, consents or approvals to use any instrumentality, thing or component as to
which any intellectual property right exists, including computer software, used in the
rendering of the services and the production of all Written Products produced under this
Agreement, and that the CITY has full legal title to and the right to reproduce the Written
Products. CONSULTANT shall defend, indemnify and hold the CITY, and its elected
officials, officers, employees, servants, attorneys, designated volunteers, and agents
serving as independent contractors in the role of CITY officials, harmless from any loss,
claim or liability in any way related to a claim that CITY's use of any of the Written Products
is violating federal, state or local laws, or any contractual provisions, or any laws relating
to trade names, licenses, franchises, copyrights, patents or other means of protecting
intellectual property rights and/or interests in products or inventions. CONSUL TANT shall
bear all costs arising from the use of patented, copyrighted, trade secret or trademarked
documents, materials, equipment, devices or processes in connection with its provision
of the services and Written Products produced under this Agreement. In the event the
use of any of the Written Products or other deliverables hereunder by the CITY is held to
constitute an infringement and the use of any of the same is enjoined, CONSUL TANT, at
its expense, shall: (a) secure for CITY the right to continue using the Written Products
and other deliverables by suspension of any injunction, or by procuring a license or
licenses for CITY; or (b) modify the Written Products and other deliverables so that they
become non-infringing while remaining in compliance with the requirements of this
Agreement. This covenant shall survive the termination of this Agreement.
Upon termination, abandonment or suspension of the Project, the
CONSUL TANT shall deliver to the CITY all Written Products and other deliverables
related to the Project without additional cost or expense to the CITY. If CONSULTANT
prepares a document. on a computer, CONSULTANT shall provide CITY with said
document both in a printed format and in an electronic format that is acceptable to the
CITY.
6.1 Representation
ARTICLE 6
GENERAL PROVISIONS
The CITY representative shall be the Director of Public Works or his or her
designee, and CONSUL TANT shall notify CITY of CONSULTANT's designated
representative. These individuals shall be the primary contact persons for the parties
regarding performance of this Agreement.
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6.2 Fair Employment Practices/Equal Opportunity Acts
In the performance of this Agreement, CONSUL TANT shall comply with all
applicable provisions of the California Fair Employment Practices Act (California
Government Code Sections 12940-48), the applicable equal employment provisions of
the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities Act
of 1990 (42 U.S.C. § 11200, et seq.).
6.3 Audit
The City or its representative shall have the option of inspecting and/or auditing all records
and other written materials used by Contractor in preparing its billings to the City as a
condition precedent to any payment to Contractor. Contractor will promptly furnish
documents requested by the City. Additionally, Contractor shall be subject to State
Auditor examination and audit at the request of the City or as part of any audit of the City,
for a period of three (3) years after final payment under this Agreement.
6.4 Personnel
CONSULTANT represents that it has, or shall secure at its own expense,
all personnel required to perform CONSULTANT's services under this Agreement. Any
person who performs engineering services pursuant to this Agreement shall be licensed
as a Civil Engineer by the State of California and in good standing. CONSULTANT shall
make reasonable efforts to maintain the continuity of CONSULTANT's staff who are
assigned to perform the services hereunder and shall obtain the approval of the Director
of Public Works of all proposed staff members who will perform such services.
CONSUL TANT may associate with or employ associates or subconsultants in the
performance of its services under this Agreement, but at all times shall CONSULTANT
be responsible for its associates or subconsultants' services.
6.5 CONSUL TANT's Representations
CONSULTANT represents, covenants and agrees that: a) CONSULTANT
is licensed, qualified, and capable of furnishing the labor, materials, and expertise
necessary to perform the services in accordance with the terms and conditions set forth
in this Agreement and in accordance with the professional standards applicable to the
services that will be provided by CONSULTANT; b) there are no obligations,
commitments, or impediments of any kind that will limit or prevent CONSULTANT's full
performance under this Agreement; c) to the extent required by the standard of practice,
CONSUL TANT has investigated and considered the scope of services performed, has
carefully considered how the services should be performed, and understands the
facilities, difficulties and restrictions attending performance of the services under this
Agreement.
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6.6 Conflicts of Interest
CONSULTANT agrees not to accept any employment or representation
during the term of this Agreement or within twelve (12) months after completion of the
work under this Agreement which is or may likely make CONSULTANT "financially
interested" (as provided in California Government Code Sections 1090 and 87100) in any
decisions made by CITY on any matter in connection with which CONSULTANT has been
retained pursuant to this Agreement.
6.7 Legal Action
(a) Should either party to this Agreement bring legal action against the
other, the validity, interpretation, and performance of this Agreement shall be controlled
by and construed under the laws of the State of California, excluding California's choice
of law rules. Venue for any such action relating to this Agreement shall be in the Los
Angeles County Superior Court.
(b) If any legal action or other proceeding, including action for
declaratory relief, is brought for the enforcement of this Agreement or because of an
alleged dispute, breach, default or misrepresentation in connection with this Agreement,
the prevailing party shall be entitled to recover reasonable attorneys' fees, experts' fees,
and other costs, in addition to any other relief to which the party may be entitled.
(c) Should any legal action about a project between CITY and a party
other than CONSULTANT require the testimony of CONSULTANT when there is no
allegation that CONSUL TANT was negligent, CITY shall compensate CONSULTANT for
its testimony and preparation to testify at the hourly rates in effect at the time of such
testimony.
6.8 Assignment
Neither this Agreement nor any part thereof shall be assigned by
CONSULTANT without the prior written consent of the CITY. Any such purported
assignment without written consent shall be null and void, and CONSUL TANT shall hold
harmless, defend and indemnify the CITY and its officers, officials, employees, agents
and representatives with respect to any claim, demand or action arising from any
unauthorized assignment.
Notwithstanding the above, CONSULTANT may use the services of
persons and entities not in CONSULTANT's direct employ, when it is appropriate and
customary to do so. Such persons and entities include, but are not necessarily limited to,
surveyors, specialized consultants, and testing laboratories. CONSULTANT's use of
subconsultants for additional services shall not be unreasonably restricted by the CITY
provided CONSUL TANT notifies the CITY in advance.
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6.9 Independent Contractor
CONSUL TANT is and shall at all times remain, as to the CITY, a wholly
independent contractor. Neither the CITY nor any of its agents shall have control over
the conduct of CONSULTANT or any of the CONSULTANT's employees, except as
herein set forth, and CONSULTANT is free to dispose of all portions of its time and
activities which it is not obligated to devote to the CITY in such a manner and to such
persons, firms, or corporations as the CONSUL TANT wishes except as expressly
provided in this Agreement. CONSULTANT shall have no power to incur any debt,
obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an
agent. CONSULTANT shall not, at any time or in any manner, represent that it or any of
its agents, servants or employees, are in any manner agents, servants or employees of
CITY. CONSUL TANT agrees to pay all required taxes on amounts paid to CONSULTANT
under this Agreement, and to indemnify and hold the CITY harmless from any and all
taxes, assessments, penalties, and interest asserted against the CITY by reason of the
independent contractor relationship created by this Agreement. CONSUL TANT shall fully
comply with the workers' compensation law regarding CONSUL TANT and its employees.
CONSUL TANT further agrees to indemnify and hold the CITY harmless from any failure
of CONSUL TANT to comply with applicable workers' compensation laws. The CITY shall
have the right to offset against the amount of any fees due to CONSUL TANT under this
Agreement any amount due to the CITY from CONSUL TANT as a result of its failure to
promptly pay to the CITY any reimbursement or indemnification arising under this Article.
6.10 Titles
The titles used in this Agreement are for general reference only and are not
part of the Agreement.
6.11 Entire Agreement
This Agreement, including any other documents incorporated herein by
specific reference, represents the entire and integrated agreement between CITY and
CONSUL TANT and supersedes all prior negotiations, representations or agreements,
either written or oral. This Agreement may be modified or amended, or provisions or
breach may be waived, only by subsequent written agreement signed by both parties.
6.12 Construction
In the event of any asserted ambiguity in, or dispute regarding the
interpretation of any matter herein, the interpretation of this Agreement shall not be
resolved by any rules of interpretation providing for interpretation against the party who
causes the uncertainty to exist or against the party who drafted the Agreement or who
drafted that portion of the Agreement.
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6.13 Non-Waiver of Terms. Rights and Remedies
Waiver by either party of any one or more of the conditions of performance under
this Agreement shall not be a waiver of any other condition of performance under this
Agreement. In no event shall the making by the CITY of any payment to CONSUL TANT
constitute or be construed as a waiver by the CITY of any breach of covenant, or any
default which may then exist on the part of CONSULTANT, and the making of any such
payment by the CITY shall in no way impair or prejudice any right or remedy available to
the CITY with regard to such breach or default.
6.14 Severability
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
6.15 Notice
Except as otherwise required by law, any notice, payment or other communication
authorized or required by this Agreement shall be in writing and shall be deemed received
on (a) the day of delivery if delivered by hand or overnight courier service during
CONSULTANT's or CITY's regular business hours or (b) on the third business day
following deposit in the United States mail, postage prepaid, to the addresses listed
below, or at such other address as one party may notify the other:
To CITY:
Responsible Person:
Michael Throne, PE, Director of Public Works
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
310-544-5252
To CONSULTANT:
Responsible Person:
Michelle Leonard, VP
SCS Engineers
438 S. Marengo Ave.
Pasadena, CA 91101
626-792-9593
[Signatures on next page]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.
Dated: ______ _
Stearns, Conrad and Schmidt, Consulting
Engineers, Inc. (SCS Engineers)
("CONSULTANT")
By: ____________ _
Printed Name: ----------
Title:-------------
By: ____________ _
Printed Name: ----------
Title: --------------
Dated:. __________ CITY OF RANCHO PALOS VERDES
("CITY")
By:~------------
Mayor
ATTEST: APPROVED AS TO FORM:
By: _____________ By: ____________ _
City Clerk City Attorney
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Exhibit "A":
City's Request For Qualifications
Exhibit "A"
R6876-0001\1347726v1 .doc
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RANCHO PALOS VERDES
Department of Public Works
REQUEST FOR QUALIFICATIONS
Consultant Services to Conduct an Integrated Residential Solid Waste
Services Agreements' Performance Review/Audits of
EDCO Disposal Corporation and Universal Waste Systems, Inc.
The City of Rancho Palos Verdes (City) has a population of over 42,000 and the
character of the community is primarily residential with about 13,545 single-family
residences, 40 multi-family properties comprising approximately 2,300 units, and 155
commercial/industrial parcels.
The City currently has two exclusive residential (single-family and multi-family) solid
waste and recycling agreements. Each agreement went into effect July 1, 201 O and
expire on June 30, 2017, with each up to a 36-month extension option.
EDCO Disposal Corporation (EDCO) exclusively services 95% of the City (Service Area
1 ), offering once a week automated curbside refuse, recycling and green waste collection.
While EDCO primarily provides curbside service, there are a number of accounts that
receive backyard service at an additional charge. Furthermore, the City has some
geographic hard to reach and steep streets and other challenging areas that are serviced
by smaller "pup" trucks. Attached See map of EDCO's Service Area.
The City's second hauler, Universal Waste Systems (UWS) exclusively services 5% of
the City (Service Area 2) offering once a week manual backyard collection in the
Portuguese Bend Landslide areas using a split-bodied truck, and once a week automated
curbside collection of trash, recycling, and green waste for homes in the PVDS adjacent
area.
The Public Works Department is responsible for administering the exclusive residential
single-family and multi-family solid waste and recycling contracts and the non-exclusive
commercial solid waste and recycling contracts. Furthermore, the City is a charter
member of the Los Angeles Regional Agency (LARA). LARA's approved diversion rates
for the past few years is as follows:
Reporting Year 2007 2008 2009 2010 2011 2012
RPV's % Diversion* 59% 71% 63% 58% 60% 68%
LARA's % Diversion** 62% 66% 70% 70% 70% 67%
* The percentages are based on the City's per capita disposal equivalent target of 4.5 and per capita generation of 9.1. This translates to a 50% diversion rate requirement.
**LARA's diversion rate includes all member cities' diversions, including RPV.
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Request for Qualifications (RFQ) for Professional Services
The City of Rancho Palos Verdes invites Statements of Qualifications from selected
qualified consulting firms with prior experience working with local governments to provide
professional services for the following project:
Conduct an Integrated Residential Solid Waste Services Agreement Performance
Review/Audit of EDCO and UWS including three areas of: Operations, Customer
Service and Financial.
The review of deliverables should determine the extent to which EDCO and UWS have
complied with all provisions of the franchise agreements. The review period is for three
fiscal years, from July 1, 2010 until July 1, 2013.
This scope of RFQ includes residential services which includes single-family accounts
and multi-family bin accounts. This does not include any roll off services, nor does it
include commercial or business bin services.
To be considered for this project, three (3) copies [one of the three should be unbound for
copying/scanning purposes] of the qualifications must be submitted to the Public Works
Department located at 30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275,
attention: Lauren Ramezani, Sr. Administrative Analyst no later than 4:00 p.m. on
Wednesday February 12, 2014.
The Scope of Work shall include but not be limited to the following items:
The Scope of work is to be divided into three tasks which are: Task "A"-Operations; Task
"B"-Customer Service; and Task "C"-Financial. The successful firm will be required to
complete the following tasks:
Task "A". Operations
Conduct a route audit by sampling of EDCO and UWS' residential collection services.
1. Verify driver start and end times, and hours of operations are their contractual
allowable times.
2. Verify delivery and proper disposal of the below material to approved designated
facilities:
a. Solid Waste (trash)
b. Green waste
c. Mixed recyclables
d. Used oil and filters
e. Electronic waste
f. Bulky waste
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3. Verify that EDCO and UWS have operated dedicated routes so as not to
commingle the City's tonnage with other jurisdictions.
4. Verify and evaluate EDCO and UWS vehicles including:
a. Quantity, type, fuel type, age, and condition of all vehicles servicing RPV.
b. Take a 1-2% sampling of past loads to verify that EDCO (-400-500 weight
tickets) and UWS (-40-50 weight tickets) have not operated any of its
collection vehicles over the legal weight limit and maximum weight allowed
per load.
c. EDCO and UWS have obtained a "satisfactory" or better rating on its BIT
inspections from the California Highway Patrol, safety and noise emission
compliance.
5. Conduct review of EDCO and UWS' quarterly and annual reports for tonnage
report accuracy and completeness.
6. Verify conformance with diversion requirements (review of weight ticket) including
assure of meeting total diversion requirements by verifying:
a. Diversion of items collected from City facilities and special events (EDCO
only)
b. Diversion of green waste (including brush clearing and Christmas trees)
c. Diversion of mixed recyclables to receive the maximum diversion credit
d. Delivery of green waste and mixed recyclables for processing in accordance
with the prescribed hierarchy of recycling methods
Task "B"-Customer Service
Review customer services operations.
1. Review proper complaint documentation and resolution within the allowable
timeframe. Take a 1-2% sample (-125 M/F and S/F accounts for EDCO and -10
accounts for UWS).
2. Review public outreach and education material and verify contract compliance.
Task "C"-Financial
Verify that EDCO and UWS are fulfilling the financial terms of their agreements. EDCO
provides the City with fixed Collector and Environmental Fees. Thus, the scope will not
include verification of EDCO's gross receipts. However, UWS provides the City a 12%
Collector Fee and a 3% Environmental Fee based on gross receipts. Thus, the scope
includes verification of UWS' gross receipts.
Furthermore, per the Council decision as of January 1, 2013, the fixed annual Recycling
Rebate (EDCO $280,000 and UWS $16,000) provided to the City was terminated.
Instead, EDCO and UWS started issuing monthly recycling credits to customers.
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1. Verify accuracy of customer billing records and rates for single and multi-family
accounts including special services (scout, push bin, pup, backyard, senior and
prepaid). Include verifying that multi-family accounts are receiving recycling
services free of charge and with adequate capacity.
2. Verify accuracy of quarterly payments (Collector Fee and Environmental Fee) to
the City. This also includes the Recycling Rebate remittals to the City from July 1,
2010 to December 31, 2012.
3. Verify that the monthly Recycling Credits offered residents were correctly
calculated.
4. Verify that the FY 13-14 rate adjustments were consistent with the agreements
outlined methodologies.
5. Assure meeting specified insurances, bond requirements, and letter of credits.
Deliverables
Prepare a draft and final report with review/audit findings addressing the section of
Operations, Customer Service and Financial.
PROJECT BUDGET
The agreements with EDCO and UWS budget for audits of up to $60,000.
Consultant's Representative
The Consultant, as deemed acceptable by the City, shall assign a qualified primary
representative and a qualified alternate to perform the services described in the scope of
work. Both shall be identified in the proposal. The Consultant's representative shall remain
in responsible charge of all duties from contract negotiations through project completion. If
the primary representative is unable to continue with the project, then the alternate
representative shall become the primary representative with the City's approval.
Additional Consultant Responsibilities
The successful Consultant shall be required to enter into a written contract with the City of
Rancho Palos Verdes and shall be responsible for completing the specified services in
Accordance with the City's standard "Professional Services Agreement" (Attached). This
Request for qualification, or any part thereof, may be incorporated into and made a part of
the final contract; however, the City reserves the right to further negotiate the terms and
conditions of the agreement with the successful consultant. At a minimum, the agreement
shall include a maximum "not to exceed" cost to the City of Rancho Palos Verdes. The
primary components and provisions of the agreement shall include errors and omissions
insurance coverage in the minimum amount of one million dollars ($1,000,000).
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City Responsibilities
The City shall provide the following to assist the Consultant with the project and its
completion:
• Copy of the City's agreements with EDCO and UWS
• Copy of EDCO and UWS' annual reports
• Copy of the EDCO and UWS' most recent rate adjustment staff reports and
calculations
• Map of the City indicating EDCO and UWS service areas
Submission of Statement of Qualifications
The Statement of Qualifications shall be in letter format, and include at a minimum the
following information:
• Introduction and understanding of the project.
• Identification of any sub-consultants.
• Consultants experience with at least two projects of similar scope, including
references with contact persons and telephone numbers.
• Identification of the project team, including organizational chart and resumes
of each team member. The Consultant's primary representative shall be
available on all occasions for discussion with City staff. Specific
responsibilities of each team member shall be detailed along with anticipated
total effort, expressed in percentages of work hours, to be provided by each
member of the team.
• Project schedule, including task start and completion dates. For purposes of
the proposal, it shall be assumed that the Consultant will receive a Notice to
Proceed in March/April 2014.
• Scope of work.
Selection Procedure
City staff will review the Statements of Qualifications. Qualifications will be evaluated
based on the following criteria:
• Experience of the firm in providing similar services.
• Relevant experience of individual team members assigned to the project.
• Understanding of the project
• References from clients for whom similar services were provided.
• Previous services provided to the City of Rancho Palos Verdes by the firm
and/or team members assigned to the project.
• Previous services provided to other clients on the Palos Verdes Peninsula.
• Appropriateness of project schedule.
Based on their review and evaluation, staff will prepare a short list of finalist firms and
determine whether to offer the projects to a single firm, or multiple firms. The selected
firm(s) needs to work with staff to finalize the scope of consultant's work. Based on the
final scope of work, staff will ask for a fee proposal from the successful firm(s). The fee will
be reviewed by staff and, if necessary, may be negotiated.
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General Information
• This Request for Qualifications does not commit the City of Rancho Palos
Verdes to pay costs incurred in the preparation of a response to this request.
No work may begin until a "Professional Services Agreement" is executed
(see sample attached) and the City issues a Notice to Proceed.
• Notwithstanding any other provisions of this Request for Qualifications, the
City of Rancho Palos Verdes reserves the right to reject any and all submittals
and to waive any informality in a submittal.
• Submission of a statement of qualifications shall constitute acknowledgement
of all terms and conditions set forth in the Request for Qualifications unless
otherwise expressly stated in the proposal.
• All data, documents, and other products used or developed for this project
shall remain in the public domain upon completion of the project. Similarly,
all responses to this Request for Qualifications shall become the property of
the City of Rancho Palos Verdes.
• The method of payment upon negotiation of a contract shall be monthly
payments based upon satisfactory progress and the submission of invoices
for payment.
All inquiries questions regarding this proposal shall be submitted in writing to the City
of Rancho Palos Verdes, Public Works Department, 30940 Hawthorne Boulevard,
Rancho Palos Verdes, CA 90275, attention: Lauren Ramezani, Sr. Administrative
Analyst. RFQ inquiries may be submitted via fax to 310/544-5292 or e-mail to
laurenr@rov.com. Please send all inquiries not later than 4:00 p.m. on Tuesday,
February 4, 2014. Responses to all questions received will be faxed and e-mailed to
all prospective proposers soon thereafter.
Attachments:
• Copy of the City's agreement with EDCO and UWS
• Copy of EDCO and UWS' annual reports
• Copy of the EDCO and UWS' most recent rate adjustment staff report and
calculations
• Map of the City indicating EDCO and UWS service areas
• Draft professional services agreement
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Exhibit "B":
Consultant's Proposal, including Schedule of Hourly Rates
Exhibit "B"
R6876-0001\134 7726v1 .doc
E-27
SCS ENGINEERS
Statement of Qualifications
Consulting Services to Conduct
Integrated Residential Solid Waste
Services Agreements' Performance
Review/Audits of
EDCO Disposal Corporation and
Universal Waste Systems, Inc.
Presented to:
RANcHO 11\Los VERDES
Department of Public Works
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
(310) 544-5252
Presented by:
SCS ENGINEERS
438 S. Marengo Ave.
Pasadena, CA 911 01
(626) 792-9593
February 1 2, 2014
File No. 010089214
Offices Nationwide
www.scsengineers.com
E-28
City o·f Rancho Palos Verdes SCS ENGINEERS
Consulting Services to Conduct Integrated
Residential Solid Waste Services Agreements'
Performance Review/Audits of
EDCO Disposal Corporation and
Universal Waste Systems, Inc.
Presented To:
City of Rancho Palos Verdes
Department of Public Works
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
(310) 544-5252
Presented By:
SCS ENGINEERS
438 S. Marengo Ave.
Pasadena, CA 911 01
(626) 792-9593
February 12, 2014
File No. 010089214
E-29
City of Rancho Palos Verdes SCS ENGINEERS
Table of Contents
Section Page
1 Introduction and Understanding of the Project ................................................................................. 3
2 Sub-Consultants •••••..••••••••••••••••••••.••••••••••.•••.•.••.••••••..•••••••••••••••••••••••••••••••.•.••••••••••••••••...••••••••••••••••.•..•••••• 5
David Davis, CMA (MSW Consultants) .................................................................................... 5
3 Experience··························································································································~···················· 6
Introduction .......................................•....•...•............................................................................................. 6
Strategic and Financial Advisory Services ............................................................................. 6
Organizational Assessments ...................................................................................................... 7
Financial and Economic Analyses ............................................................................................. 7
Experience Supporting the City of Rancho Palos Verdes ............................................................... 9
Experience with Other Palos Verdes Peninsula Clients ................................................................. 10
Proj~ct Profiles/References ................................................................................................................ 11
MSW Consultants' Project Experience ............................................. : •••••••••••••••••••••••••••••••••••••••••••••••• 1 6
4 Proiect T eom ........................................................................................................................................ 20
Organization Chart .............................................................................................................................. 20
Resumes •...••......•........•.....•...•••...•.•.........•••.......•..•...•..••••••..•.........•.••. : ....•.•....•....•......••.•••...••..•....•....•..•.•. 21
Team Member Responsibilities ........................................................................................................... 22
5 Proiect Schedule .................................................................................................................................. 23
6 Scope of Work .................................................................................................................................... 24
Proiect Initiation .................................................................................................................................... 24
Task A -Operations ............................................................................................................................ 24
Task B -Customer Service .................................................................................................................. 26
Task C -Financial ...............................•...............................•................................................................. 27
Exit Conference .................................................................................................................................... 28
Prepare Draft and Final Reports ...................................................................................................... 28
7 Professional Services Agreement ..................................................................................................... 29
1.
2.
3.
4.
5.
List of Exhibits
Solid Waste Management Consulting Services
Experience with Other Palos Verdes Peninsula Clients
Organization Chart
Team Member Responsibilities
Project Schedule
Appendices
A. Resumes
ii
8
10
20
22
23
E-30
Environmental Consultants
and Contractors
438 S. Marengo Ave.
Pasadena, CA 91101
SCS ENGINEERS .
February 12, 2014
File No. 010089214
Ms. Lauren Ramezani, Senior Administrative Analyst
City of Rancho Palos Verdes
Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
626 792 9593
www.scsengineers.com
Subject: Request for Qualifications (RFQ) to Provide Consultant Services to Conduct
· Integrated residential Solid Waste Services Agreements' Performance
Review/ Audits of EDCO Disposal Corporation and
Universal Waste Systems, Inc.
Dear Ms. Ramezani:
The City of Rancho Palos Verdes Public Works Department (City) is seeking Statements of
Qualifications from solid waste industry consulting experts to provide a review/audit of the
City's Agreements with EDCO Disposal Corporation (EDCO) and Universal Waste Systems
(UWS) to verify each company's compliance with the terms and conditions of their Agreement
with the City.
As required, this Statement of Qualifications includes sections titled: Introduction and
Understanding of the Project, Sub-Consultants, Experience, Project Team, Project Schedule, and
Scope of Work. We have also included a section titled Professional Services Agreement.
For the past 12 years, SCS personnel have assisted the City in the implementation of its Source
Reduction and Recycling Element (SRRE) and Used Oil Block Grant (now Oil Payment
Program) programs, and with additional solid waste support services, including review of annual
residential rate adjustment requests, hauler reporting review and analysis, Los Angeles Regional
Agency (LARA) assistance, and legislative and regulatory review. This experience gives SCS a
unique perspective and unparalleled expertise to undertake the performance reviews and audits
of the haulers. SCS has established strong working relationships with City staff, as well as
representatives from both hauling companies. By contracting with SCS to complete this study,
the City will enjoy the following benefits:
• Familiarity ofSCS staff with the City's programs and staff
• Familiarity ofSCS staff with EDCO and UWS programs, personnel, and services.
• In-house library of City documents, ordinances, and data.
• No lost time in getting up to speed on the City's programs and policies.
For this project, we propose teaming with MSW Consultants, who like SCS, specializes in
providing solid waste consulting services to local government agencies. Specifically, our
proposed Project Manager, Michelle Leonard, will work closely with Mr. Dave Davis, CMA, a
E-31
Environmental Consultants
and Contractors
SCS ENGINEERS
438 S. Marengo Ave.
Pasadena, CA 91101
626 792 9593
www.scsengineers.com
26-year industry veteran, with specializations in solid waste cost accounting and macro-and
micro-economics.
Our experience with the City, and our Project Team's additional qualifications gained from
comparable projects with other California municipalities, will enable the SCS Team to undertake
the subject project in the most timely and cost-effective manner.
We are highly confident in our ability to meet all of the City's expectations on this project. This
confidence is based on:
• Our proven and sustained track record with the City since 2001.
• More than four decades of solid waste planning, analysis, engineering, construction,
. and operations experience and excellent service to government agencies and
commercial clients in California, as well as many other states, and internationally.
• The knowledge, attention to detail, and reliability of our proposed Project Manager,
Michelle Leonard; and the financial and economic acumen of Mr. David Davis. Ms.
Leonard has over nearly 30 years of experience providing solid waste management
consulting services to municipalities, and a strong working knowledge of the City's
programs, policies, and services. We highly value our long and productive
relationship with the City and look forward to helping the City complete the
performance review/audit.
If you have any questions concerning any aspect of this proposal, please contact me at your
convenience at (626) 792-9593 or mleonard@scsengineers.com.
Sincerely,
Michelle Leonard
Vice President
SCS ENGINEERS
Ownership Makes a Difference I
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City of Rancho Palos Verdes SCS ENGINHRS
1 INTRODUCTION AND UNDERSTANDING OF THE
PROJECT
The Project Team of SCS Engineers and MSW Consultants (Project Team) is pleased to present
this proposal to conduct performance reviews and audits of the City's residential haulers, EDCO
and UWS. The two haulers provide residential solid waste and recycling services to the
approximately 13,545 single-family residences, and 40 multi-family properties comprising
nearly 2,300 units. EDCO services the majority of the City's residences (95%) with once a week
automated curbside refuse, recycling and green waste collection. A small number of accounts
receive backyard services, and some hard to service areas are serviced by "pup" trucks that are
able to maneuver in the steep streets and challenging areas. UWS services the remaining 5% of
the City, including providing once a week manual backyard collection in the Portuguese Bend
Landslide area, and once a week automated curbside collection for homes in the Palos Verdes
Drive Sou~h (PVDS) adjacent area.
The haulers' agreements went into effect in fiscal year 2010, and expire at the end of June 2017,
with an optional 36 month extension. As part of each hauler's agreement, a compliance audit
could be performed at any time. The first audit was to be performed in 2012, to cover the initial
period starting July 2010 through calendar year 2011. Audits were to be performed every third
year thereafter. The City has not conducted a performance review/audit since inception of the
current EDCO and UWS contracts.
The purpose of this project is to determine the haulers' compliance with the contract
requirements regarding operations, customer service and financial. Specifically, the audit will
include the following:
1. Operations -conduct a route audit to verify compliance with collection, disposal, and
recycling service requirements and vehicles, review tonnage reports for accuracy and
completeness, and verify conformance with diversion requirements.
2. Customer service -review customer complaint documentation and resolution to
verify compliance with timeframe requirements, and review public outreach and
educational materials for contract compliance.
3. Financial -review compliance with financial term of the agreements, including
UWS' gross receipts and fee payments, billing records and rates in relation to specific
service requirements, accuracy of collector and environmental fees and recycling
rebates, recycling credits paid to customers since 2013, annual rate adjustments, and
other contractual and legal requirements.
The Project Team is uniquely qualified to undertake this project, for a number of reasons:
• Project Team members are intimately familiar with both the EDCO and UWS
contracts, having worked with the City on all aspects of compliance, including annual
rate adjustment review, review of quarterly and annual reports, implementation of
outreach and education, and providing input to the City on the haulers' services and
programs.
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City of Rancho Palos Verdes SCS ENGINff:RS
• Project Team members are unbiased. We did not develop or create the original
agreements with the haulers, and therefore will maintain a third party, unbiased
review of the contract requirements and compliance, particularly the rate adjustments,
rebate, and other fees.
• Project Team members are familiar with key personnel from EDCO and UWS, but
have not been involved in previous contract negotiations in the City or other
municipalities with these haulers. Therefore, the haulers will feel comfortable with
us, and will be forthcoming in providing the necessary data and information for the
performance review and audit.
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City of Rancho Palos Verdes SCS ENGINEERS
2 SUB-CONSULTANTS
SCS's experience with and knowledge of the City's solid waste system is unsurpassed. No other
consultant has worked consistently with the City over the past 12 years. In order to provide the
City with the strongest possible Project Team for the performance review/audit services required,
we have supplemented our capabilities with the skills and experience of Dave Davis, Principal of
MSW Consultants. Mr. Davis is a Certified Management Accountant (CMA) who specializes in
solid waste cost accounting and macro-and micro-economics. He has provided solid waste
consulting services to local government agencies for 26 years. Ms. Leonard and Mr. Davis have
worked together on a number of successful projects for government agencies, including a
franchise compliance audit for the City of Baldwin Park, an analysis of the county-wide landfill
rate model used by the cities and County of Orange, CA, and a Rate Audit for the City of Santa
Maria, CA. They previously served together on the Board of Directors of the Southern
California Waste Management Forum. Both have extensive familiarity with state and local
regulations governing municipal solid waste operations in Los Angeles County.
Mr. Davis's capsule resume is provided below. His full resume is provided in Appendix A.
David Davis, CMA (MSW Consultants)
MSW Consultants provides solid waste consulting services exclusively to government agencies
in the areas of finance, economics, and public policy. The firm's mission is to work with
municipal managers to maximize the value of the solid waste services that are delivered to their
ratepayers. MSW Consultants was founded in 2000 by David L. Davis, CMA. In his 26 years in
the solid waste industry, Mr. Davis has provided a broad range of solid waste consulting service
to over 50 local jurisdictions in the areas of rate setting, service procurement, regulatory
compliance, waste diversion, facility feasibility analysis, operational assessment, and rates
studies for solid waste collection, processing and disposal service.
MSW Consultants specializes in contract negotiation and procurement assistance, reviews of
hauler's requests for rate increases (e.g., fuel cost increase requests), feasibility studies for
capital projects, franchise fee audits, waste generation studies, implementation of waste diversion
programs, and route audits and collection efficiency studies.
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City of Rancho Palos Verdes SCS ENGINEERS
3 EXPERIENCE
INTRODUCTION
SCS is one of the oldest and most widely respected employee-owned solid waste consulting
firms in the United States. Founded in 1970 and headquartered in Long Beach, California, SCS
has grown to a staff of nearly 800 engineers, management consultants, economists, geologists,
scientists, constructors, operators, and support staff in 71 offices serving clients in 3 5 states and
internationally.
SCS's Sustainable Materials Management professionals specialize in all aspects of solid waste
planning and operations, including comprehensive solid waste management plans, feasibility
studies, programs analyses, rate studies, and management consulting studies. SCS has performed
a wide range of studies for local government agencies tasked with managing municipal solid
waste operations in their jurisdictions. While our experience spans the nation, we have particular
strength in California and along the West Coast, having assisted hundreds of clients with
planning services as simple as proposal and contract design to performing in-depth evaluations
of a department's entire solid waste operations.
Over the last several years, solid waste agencies have been faced with a number of emerging
issues: new regulations; increasing labor, energy, equipment, and insurance costs; lower solid
waste tonnages; and uncertain recyclables markets. Add continued calls from political decision-
makers to do more with less and evaluate if outsourcing to the private sector will save money
and reduce risk, and the question frequently asked is "Where do we begin?" Without objective
evaluations of management decisions, financial position, and operational activities, solid waste
agencies may end up with more questions than answers. SCS has the insight, resources, and
experience to provide meaningful, reliable, and well-thought through information, upon which
these kinds of key strategic decisions can be made.
SCS offers management consulting services for solid waste agencies in the areas of:
• Strategic and Financial Advisory Services
• Organizational Assessments
• Financial and Economic Analyses
Strategic and Financial Advisory Services
SCS has provided strategic, business, and financial advisory services to local solid waste
agencies for over 40 years. Our staff professionals have many years of experience in solid waste
collection franchising and contracting, including detailed evaluation and audits of franchise or
contract operations, and have also participated in numerous presentations before bond rating
agencies and bond insurance firms to assist our client's in receiving the most favorable credit
rating possible. We also have expertise in evaluating complaints with rate covenants to satisfy
the requirements of Bond Resolutions and developing plans to ensure such compliance.
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City of Rancho Palos Verdes SCS ENGINEERS
Organizational Assessments
SCS assists solid waste management organizations in ensuring their operations are cost effective,
achieve waste reduction goals, and meet long-term community needs. For many clients, we have
provided analysis and guidance in planning and designing the administrative structure for the
effective management of solid waste systems. This includes organizational analysis and design,
development of performance measures to gauge efficiency of programs and services, and
evaluation of the administration of physical, financial, and human resources. We make certain
new or modified planning strategies and objectives are appropriate, financially sound, and viable.
We provide operation evaluations that accurately determine the effectiveness, efficiency, and
safety of services provided by your operator. We identify causes of performance shortfalls, offer
proven recommendations to reduce costs and improve productivity and services, and assist with
monitoring program results. During these efforts, SCS has prepared organizational audits,
designed management information systems, and assisted in organizational planning and
evaluation and selection of personnel to fill key positions. We have identified the organizational
strategy and then planned the structure of resources needed to implement effective system
management to achieve the goals of the organization. Results include improved allocation of
resources, expanded and reliable services, reduced customer complaints, lower costs, and setup
of solid foundations for successful long-term operations and services.
Financial and Economic Analyses
SCS has performed a full range of consulting services for solid waste programs, including rate
studies, financial assurance cost estimates, escrow account analyses, and tipping fee analyses.
Our staff has the ability to offer an independent evaluation of solid waste rates and charges that
will allow solid waste agencies to meet their financial obligations; capital funding needs for
system expansion, renewal and replacement; and to set aside appropriate reserve fund balances.
Our financial consulting experts have assisted more than 100 clients in the development of
solutions resulting in financial stability. We have crafted several innovative solutions to our
client's problems, and made formal and informative presentations to county commissions, city
councils, authority boards, and citizen's advisory boards to gain acceptance of proposed new or
revised rate and financial recommendations. '
SCS's Solid Waste Management Consulting Services are summarized in Exhibit 1.
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City of Rancho Palos Verdes
Exhibit 1. Solid Waste Management Consulting Services
• Business Advisory Services
• Independent Engineer's Opinions on Bond Issues
• Franchise Agreement Reviews
• Franchise Proposal Preparation
• Development of LOl/RFQ/RFP /Bid Documents
• Analysis of Organization Structure
• Review of Position Classifications
• Identification of Process Improvements
• Development of Transition Plans
• Rate Analysis
• Cost of Service Studies
• Cost, Financial, and Economic Analysis
• Pay-As-You-Throw (PA YT) and Alternative Rate
Programs
• Performance Reviews
• Reasonableness of Franchise Rate Requests
• System Valuations
• Franchisee Reviews of Fees Remitted
• Review of Franchise Adjustment Requests
• Customer Billing and Service Reviews
• Financial Assurance/Responsibility Reports
• Solid Waste Assessment Rolls
• Pre-Application Due Diligence Reviews
• Ordinance Review
• Program Planning
• Zero Waste Planning
• Development of Capital Improvement Plans (CIP)
• Development of Fleet Replacement Plans
• Evaluation of Public-Private Partnership Planning
• Development of Waste Diversion Programs
• Waste Collection Routing Analysis
• Deployment of RFID Programs
• Greenhouse Gas Inventory Studies
• Sustainability Plans
• Facilitation of Public Meetings
• Public Opinion Surveys
• Contract Management Solutions
• Business Waste Audits
• Waste Characterization Programs
• Benchmarking Surveys of Service and Fees
• Regulatory Reporting
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City of Rancho Palos Verdes SCS EN GIN URS
EXPERIENCE SUPPORTING THE CITY OF RANCHO PALOS
VERDES
SCS is proud to have supported the City of Rancho Palos Verdes since 2001, when we were first
contracted to provide support services associated with the City's AB 939 and used oil recycling
program. For the past 12 years, SCS personnel have assisted the City in the implementation of
its SSRE and Used Oil Block Grant (now Oil Payment Program) programs, and with additional
solid waste support services, such as:
• Review of proposed franchise agreements.
• Review of annual residential rate adjustment requests.
• Los Angeles Regional Agency (LARA) assistance, including Annual Report preparation.
• Review of quarterly and annual hauler reports.
• Review and input to staff reports.
• Review and implementation of education and outreach.
• Coordination with haulers for AB 341 program implementation and compliance
monitoring.
• Promulgation of Construction and Demolition (C&D) debris recycling requirements, and
review of project compliance and reporting.
• Legislative and regulatory review, updates, and recommendations.
This experience gives SCS a unique perspective into the City's needs, preferences and processes
for managing its solid waste responsibilities. By selecting SCS to perform this project, the City
will enjoy the following benefits:
• Familiarity of SCS staff with the City's programs and staff
• Familiarity of SCS staff with the franchised haulers' staff-SCS has worked with
EDCO and UWS staff in recent years on behalf of the City to increase diversion rates,
and review rate increase requests, cash refund payments, and hauler data.
• Familiarity ofSCS staff with completing hauler audits for other cities in California.
• Locally based staff available to meet with the City on a regular, as needed basis. Our
monthly meetings with the City for the AB 939 support services contract can be used
to discuss progress on this project as well.
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City of Rancho Palos Verdes SCS fNGINHRS
EXPERIENCE WITH OTHER PALOS VERDES PENINSULA CLIENTS
In addition to performing work for the City, we have provided a wide range of solid waste and
environmental services to clients on the Palos Verdes Peninsula, dating back to our first year in
business, 1970, when one of SCS's founders, Robert Stearns (Deceased), performed a sub-
surface gas investigation at a site in Rolling Hills. A representative sampling of this experience
is provided in Exhibit 2.
Exhibit 2. Experience with Other Palos Verdes Peninsula Clients
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City of Rancho Palos Verdes SCS ENGINHRS
PROJECT PROFILES/REFERENCES
SCS is proud of the quality, timeliness, and professionalism of our solid waste consulting work.
The below Project Profiles/References are a representative sampling of work we have completed
similar in nature to the reviews/audits required by the City. Contact information is provided and
we encourage the City to seek reference information, as desired.
ON-CALL SOLID WASTE AND RECYCLING CONSULTING SERVICES
City of Rancho Palos Verdes, California
Client:
Contact:
Dates:
Personnel:
City of Rancho Palos Verdes
Department of Public Works
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
Ms. Lauren Ramezani
Sr. Administrative Analyst
(310) 544-5254
2001 -Present
Michelle Leonard
Maria Hernandez
Michelle Nicholls
Flyers were developed and distributed to
Inform the community of the new mandated
commercial recycling requirements.
Since 2001, Michelle Leonard and her project team have provided annual solid waste
management (AB 939) services to the City of Rancho Palos Verdes. Over the years, a number of
projects have been implemented to assist the City in reaching its diversion goals. Highlights
include:
• Expansion of the City's multi-family recycling program, including meeting
with the City's franchised hauler, building managers, and residents to discuss
opportunities for increasing diversion from the City's many multi-family
buildings. As a result of these meetings, a new program was designed and
implemented, in conjunction with interested stakeholders.
• Applying for and winning a State grant for expansion of the multi-family
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City of Rancho Palos Verdes SCS ENGINEERS
recycling program.
• Reviewing the City's C&D programs and working on new policies and methods
to increase diversion of this material.
• Designing, implementing, and monitoring the C&D diversion program at the
Marineland/Terranea Resort, including meeting with the developer, various
contractors, and resort staff; conducting site visits; and assisting with
quantifying debris and identifying markets for recycled materials.
• Assisting the City in reviewing and expanding programs at City parks and a
variety of other public education and outreach programs.
• Reviewing the Disposal Reporting System (DRS) and monthly hauler data, and
preparing the AB 939 Annual Reports.
• Implementing the City's Used Oil Program, including conducting inspections
of the Certified Centers and filing Form 303s and Annual Reports.
• Conducting Annual Reviews of Franchise Haulers' rate increase requests,
including reviewing and verifying calculations and proposed rates.
• AB 341 implementation and monitoring, including hauler workshops, data
review and analysis, business waste assessments, and report preparation.
• Expanding the City's multi-family recycling program through a state grant.
SCS has met with the City's franchised haulers,-building managers, and
residents to discuss opportunities for increasing diversion from the City's many
multi-family buildings. These meetings have led to new or expanded programs
being designed and implemented in conjunction with interested stakeholders.
• Evaluating recycling needs and designing/assisting in the implementation of
recycling at a local college, including collecting paper and beverage containers.
• Reviewing the City's C&D programs and working on new policies and methods
to increase diversion of this material, including preparation of comprehensive
reporting forms.
• Administering a multi-jurisdictional Reuse Assistance Grant to promote un-
served food donations from the food service community to local non-profit
organizations.
• Assisting the City in reviewing and expanding programs at City parks.
• Developing a variety of public education and outreach materials, including
Recycling Guides targeted to the business community.
• Reviewing cash refund (CRV) payments to the City by the franchised haulers.
• Monitoring AB 939 compliance on a quarterly basis and preparing Annual
Reports.
• Attending local Joint Powers Authority (JP A) meetings (LARA) on the City's
behalf.
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City of Rancho Palos Verdes SCS fNGINHRS
FINANCIAL AND OPERATIONAL REVIEW OF FRANCHISE AGREEMENT
City of Baldwi_n Park, California
Client: City of Baldwin Park
1 31 35 E. Garvey Avenue
Baldwin Park, CA 91706
Contact: Ms. Wendy Harris (retired)
Supervisor
(626) 960-3993, ext. 514
Dates: 2004
Personnel: Michelle Leonard
SCS has performed a waste
gene ration study, recy ding
program design and
lm1=1lanu1ntati on, or.d rap ortlng and
monitoring for AB '939 'omplion,e.
David Davis, MSW Consultants
Michelle Nicholls
SCS conducted a financial and operational review of the City of Baldwin Park solid waste
services franchise agreement with Waste Management of the San Gabriel Valley. This study
was conducted for a number of reasons:
• It was a condition of the City's AB 939 Local Assistance Plan/Compliance Order.
• The franchise agreement has undergone a number of amendments, which were not
clearly defined.
• The City had not conducted a review of the service providers' operations or
finances for many years.
• The information was necessary in order to fully evaluate the provider's fulfillment
of the contract requirements.
• The objectives of the franchise review were to:
Verify the accuracy of the franchise fees and AB 939 fees paid to the City.
Verify that Waste Management is currently billing its customers in
conformance with the rates approved by the City Council.
Verify that operations are being conducted in compliance with franchise terms.
Provide City staff with current information regarding Waste Management's
compliance with the terms and conditions of the franchise.
In order to conduct the study, SCS requested and reviewed relevant background documents from
the City and Waste Management, including the original agreement and subsequent amendments,
monthly and annual reports, and City fee receipt records. The results of the study indicated the
Franchise Fees and AB 939 Fees paid by Waste Management for the 12-month period were
correct. This project was completed on time and within the original budget.
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City of Rancho Palos Verdes SCS ENGINHRS
AUDIT OF SOLID WASTE FRANCHISE AGREEMENT
City of Redondo Beach, California
Client: City of Redondo Beach
Department of Public Works
531 N. Gertruda Avenue
Redondo Beach, CA 90277
Contact: Mr. Jon Emerson
Senior Management Analyst
(310) 318-0686, ext. 4151
Dates: 2005
Personnel: Michelle Leonard
Michelle Nicholls
SCS was retained by the City of Redondo Beach to perform an independent audit of the Solid
Waste Handling Services Agreement between the City and Consolidated Disposal Service.
In conduc~ing the audit, SCS performed the following tasks:
• Reviewed background information relative to operation of the City's solid waste
system, including the Solid Waste Handling Services Agreement between the City
of Redondo Beach and Consolidated Disposal Service.
• Issued a request to Consolidated for pertinent financial and operational data and
documents, and verified supporting documents and schedules.
• Verified the supporting documentation and recalculated state-mandated recycling
rates (AB 939), administration, and household hazardous waste fees.
• Selected a 15 percent sample of commercial bin service accounts for testing, and
performed selected site inspections to document service levels.
• Selected a sample of the 100 largest multi-family accounts, and contacted accounts
by telephone and/or performed selected site inspections to identify any differences
with Consolidated's customer database.
• Prepared a report that documented our findings and recommendations.
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City of Rancho Polos Verdes SCS fNGINHRS
NEGOTIATION ASSISTANCE FOR LONG-TERM DISPOSAL AGREEMENT, ORANGE COUNTY
CITY MANAGERS ASSOCIATION (OCCMA)
City of Anaheim, California
Client: City of Anaheim
200 South Anaheim Boulevard
Anaheim, CA 92805
Contact: Ms. Ayumi Wunder
Public Works Director
(714) 765-6860
Dates: 2007 -2008
Personnel: Michelle Leonard
David Davis
SCS was the prime contractor performing an analysis of the landfill rate model prepared by
Orange County, CA. The 34 cities of Orange County have a disposal agreement with the County
to dispose of all city waste at the three County-owned landfills for a set tipping fee. The existing
10-year agreement expired in 2009, and the County has proposed a new tipping fee, based on a
financial model. As part of this assignment, SCS was retained to:
• Perform a due diligence review of the calculations and assumptions that support the
County's proposed new tipping fees.
• Identify and advise the Waste Management Committee of the Orange County City
Managers Organization about any facts or issues that may enable the cities to
constructively negotiate contract terms or a contract rate that is more favorable to
the cities.
• Assist the cities in analyzing the relative merits of the alternative fee structures (i.e.,
flat fee versus adjusted annually based on inflation).
• Possibly assist the cities in designing a policy and methodology for the County to
declare a dividend (or rate reduction) in the event actual expenses are less than
projected or if actual tonnage quantities are greater than expected.
A new, mutually agreeable rate was established for the City to dispose of waste at the Orange
County landfills, and the City entered into a new long-term disposal agreement with the County.
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City of Rancho Palos Verdes
MSW CONSULTANTS' PROJECT EXPERIENCE
SOLID WASTE CONTRACT NEGOTIATION ASSISTANCE
City of Rolling Hills, California
Client: City of Rolling Hills
Contact: Mr. Anton (Tony) Dahlerbruch
City Manager
(310) 377-1521
Dates: 2010
Personnel: David Davis
SCS ENGINEERS
In 2010, MSW assisted the City in re-negotiating its exclusive franchise agreement with Allied
Waste Industries, Inc. The City is unique in that it is exclusively residential with large lots. Its
residents receive premium backyard service twice per week. MSW's work included estimating
the company's operating costs, gathering rate and service information from comparable
communities, developing a negotiating strategy, drafting a new :franchise agreement, and
assisting City staff in negotiating a new agreement with Allied.
MSW negotiated a new agreement with stronger terms, increased services and rates that were
competitive in relation to other similar communities.
HAULER FEE AUDITS; RECYCLABLE PROCESSING AGREEMENT NEGOTIATION ASSISTANCE
City of Burbank, California
Client: City of Burbank
Contact: Ms. Bonnie Teaford
Public Works Director
(818) 238-3921
Mr. John Molinar
Assistant Director of Public Works
(818) 238-3919
Mr. Kreigh Hampel
Recycling Coordinator
(818) 238-3902
Dates: 2009
Personnel: David Davis
In 2009, MSW assisted the City in re-negotiating its recyclable processing agreement with
Burbank Recycling, Inc. (BRI). The City owns a recyclable processing center. Recyclable
materials collected through curbside and commercial collection routes are delivered tothe center.
The City contracts with BRI to operate and maintain the facility. MSW's work included
gathering information about similar recyclable processing arrangements, developing a
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City of Rancho Palos Verdes SCS ENGINEERS
negotiation strategy, drafting an updated operating agreement, and assisting in contract
discussions. In 2011, MSW assisted the City in negotiating an assignment of the BRI operating
agreement to Burrtec Waste Industries, Inc. MSW has recently been retained by the City to
review the franchise fees paid by the City's independent commercial waste haulers.
The City Council unanimously approved a new operating agreement that will provide the City
with over $400,000 in new annual revenue.
AB 939 COMPLIANCE; SOLID WASTE FRANCHISE FEE AUDITS
City of Vernon, California
Client: City of Vernon
Contact: Mr. Leonard Grossberg
Interim Director of Environmental
Health
(323) 583-8811
Dates: 2000 -2012
Personnel: David Davis
Since 2000, MSW has assisted the City in achieving its AB 939 diversion goals. MSW's work
has consisted of monitoring the City's reported tonnages, and preparing the City's AB 939
Annual Report. MSW has also assisted the City in verifying the fee payments and reported
tonnage amounts of its 18 independent refuse haulers. In 2012, MSW assisted the City in
preparing a sustainability action plan.
Since 2000, the businesses in Vernon have consistently achieved a waste diversion rate of well
over 50 percent. MSW's hauler reviews have recovered over $500,000 in unreported franchise
fees, and reclassified over 100,000 tons mistakenly assigned to Vernon.
FINANCIAL REVIEW OF WASTE HAULER; SOLID WASTE PROCUREMENT ASSISTANCE
City of Carpinteria, California
Client: City of Carpinteria
Contact: Mr. Charlie Ebeling
Public Works Director
(805) 684-5405 ext. 402
Ms. Erin Maker
Environmental Coordinator
(805) 684-5405 ext. 415
Dates: 2011
Personnel: David Davis
In 2011, MSW assisted the City in performing a financial review of its exclusive solid waste
service provider. MSW's work included performing an on-site review of the waste hauler's
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City of Rancho Palos Verdes ~cs ENGINHRS
operational and financial records. MSW reviewed the hauler's billing accuracy, and proper
payment of fees to the City. MSW also reviewed the hauler's profitability, and presented its
findings to the City Council. Additionally, MSW is assisting the City in re-negotiating the City's
current franchise agreement.
MSW's financial review found that the hauler was accurately billing customers and correctly
paying fees to the City.
FRANCHISE FEE AUDIT; SOLID WASTE CONTRACT PROCUREMENT ASSISTANCE
City of Hawthorne, California
Client: City of Hawthorne
Contact: Mr. Arnie Shadbehr
City Manager
.. (310) 349-2910
Dates: 2007
Personnel: David Davis
In 2007, MSW assisted the City in a competitive procurement for residential and commercial
solid waste service. MSW designed new recycling programs, specified the scope of services to
be included in the new service agreement, prepared RFP documents, and evaluated proposals. In
2005, MSW assisted the City with franchise fee audits of its exclusive residential and non-
exclusive commercial solid waste service providers.
MSW's competitive procurement resulted in over $2 million in annual savings to the City's
residents and businesses. MSW's franchise fee audit resulted in the recovery of approximately
$1.5 million in undeclared franchise fees.
AUDIT OF BUSINESS LICENSE TAX ON LANDFILL GROSS RECEIPTS
City of Los Angeles -Treasurer and Tax Collector's Office, California
Client: City of Los Angeles
Contact: Mr. Joe Kelly
Chief Deputy -Treasurer and Tax
Collector
(213) 974-2184
Ms. Damia Johnson
Assistant Operations Chief
(213) 974-7371
Dates: 2010
Personnel: David Davis
In 2010, under subcontract to Intelligent Directions Consulting, Inc., MSW served as technical
advisors on an engagement to audit the gross receipts of the five largest landfills in Los Angeles
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City of Rancho Polos Verdes SCS ENGINHRS
County. All landfills in Los Angeles County are required to pay a 10% Business License Tax
based on their gross receipts. This was the first time in the County's history that this tax had
been audited. MSW's role in this project was to develop the procedures used to audit the gross
receipts of these landfills. MSW's work included reviewing key documents that governed the
tax calculation method, developing workpaper templates, reviewing tonnage and revenue data,
and reviewing draft audit reports.
The engagement resulted in the identification of over $2.5 million in unpaid business license
fees, penalties, and interest.
PERFORMANCE REVIEW OF WASTE HAULER
City of Orange, California
Client: City of Orange
Contact: .. Ms. Katrin Bandhauer
Internal Auditor
(714) 7 44-2207
Dates: 2007
Personnel: David Davis
In 2007, MSW assisted the City in performing a cost of service analysis of its sanitation service
rates. Work included designing new rates for single family, multi-family, and non-residential
customers. MSW developed a rate model to emulate the rate impact of various scenarios on
individual customers and on customer sectors. MSW has recently been selected to conduct a
performance review of the City's exclusive solid waste service provider, CR&R.
MSW developed more equitable rates for sanitation services. The performance review has yet to
begin.
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City of Rancho Palos Verdes SCS ENGINEERS
4 PROJECT TEAM
Project Team selection is always a function of our overriding objective on each project: to deliver
the best solution and best overall value to our client. Therefore, careful consideration is always
given to team members' site-and scope-specific experience, availability, and scheduled
workload when establishing Project Teams for inclusion in proposals and subsequent contracts.
Our longevity, numerous long-lasting client relationships (including 12 consecutive years with
the City), and overwhelmingly positive reputation in the solid waste consulting industry suggest
our senior engineers, geologists, scientists, and executive leaders understand and embrace this
concept on a daily basis. Upon award, the City can rest assured SCS will provide a team of well-
qualified and readily available audit professionals with scope-specific experience to meet all of
the City's needs on this project.
In the unlikely event our proposed Project Manager, Ms. Michelle Leonard, is unable to
complete the project, Mr. David Davis is fully capable of completing the project,
ORGANIZATION CHART
SCS's proposed Project Team members and their primary roles are described below:
Michelle Leonard, Project Manager
Maria "Leni" Hernandez, Customer Service and Operations
David Davis, CMA, MSW Consultants, Financial Analysis
Exhibit 3 shows our proposed Organization Chart.
Exhibit 3. Organization Chart
~8\LDsVtRDEB
Public Works Department
Lauren Ramezani
Sr. Administrative Analyst
Michelle Leonard
Project Manager.
Maria "Leni" Hernandez
Customer Service,
Operations
Operations
20
David Davis, CMA
MSW Consultants
Financial
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City of Rancho Palos Verdes $CS ENGINHRS
RESUMES
Michelle P. Leonard is SCS's proposed Project Manager. In this role she will be responsible for
adherence to scope, schedule, and budget, and will serve as the City's point of contact, including
attendance at all scheduled meetings. Michelle is a recognized leader in the field of solid waste
management and recycling, and has spent all of her professional career in environmental
consulting, with emphasis in solid waste management planning. She was involved in the early
years of AB 939, and prepared many of the source reduction and recycling elements, base year
studies, and waste generation studies that are still in place today for many California cities and
counties. She taught a Certificate Course at Cal Poly Pomona on AB 939, and many of her
students are Recycling Coordinators for municipalities in Southern California. Michelle is active
in local, regional and state-wide recycling efforts, and brings to the project nearly 30 years of
experience in managing solid waste management projects. She currently serves as the
International Treasurer of the Solid Waste Association of North America (SWAN A), and is a
past directer (20 years) of the Southern California Waste Management Forum.
Michelle has worked with the City for over 12 years on all aspects of AB 939 compliance, and
helped to develop many of the existing programs, including business and multi-family recycling,
DRS monitoring and reporting, C&D diversion projects, and City recycling programs. She has a
strong working knowledge of the City's existing programs, and an established working
relationship with Ms. Lauren Ramezani.
David Davis, CMA is a cost accountant and an expert in solid waste macro-and micro-
economics. Mr. Davis has held executive management positions in local government and the
private sector. He has served as the chief financial officer for hauling and landfill divisions ofa
national waste management company, and has provided solid waste consulting services to over
50 local government agencies. Mr. Davis is an active contributor in the solid waste industry, and
has served on the Board of Directors of the Southern California Waste Management Forum
(SCWMF) since 1999.
Mr. Davis graduated from Cal State Fullerton with a B.A. in Finance, and is a Certified
Management Accountant (CMA). He is the principal of MSW Consultants, and is located in
Temecula, California.
Maria "Leni" Hernandez works with SCS's talented group of sustainability and solid waste
planning experts. A resource management and recycling specialist, she currently provides solid
waste services to the City of Rancho Palos Verdes, including reviewing hauler reports,
implementing AB 341 programs, evaluating and updating the City Parks and City Hall recycling
programs, and implementing the_ Used Oil Program. For the City of Pasadena, she is currently
conducting hauler third party diversion audits, and verifying diversion and disposal data. For the
City of Lakewood, she is responsible for reviewing quarterly hauler reports, and rectifying those
reports with County DRS data. In the City oflrvine, she is performing waste audits, and
working with franchised haulers to implement residential and commercial recycling programs.
Prior to joining SCS, Maria served as an intern with CalRecycle, while completing her Recycling
and Resource Management Certificate in 2012. Maria is bilingual in English and Spanish, and is
located in SCS's Pasadena office.
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SCS ENGINEERS
Project Schedule
7 8 9 10 11 12
Initiate Project
Project Kick-off meeting
Operations
customer Services
Financial
Exit Interviews
Pre are Draft Re ort
Draft Submission
Oient Review
Final Report
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City of Rancho Palos Verdes SCS ENGINEERS
6 SCOPE OF WORK
The City has provided a scope of work that divides the project into three tasks: A. Operations,
B. Customer Service, and C. Financial. The components of each task are comprised of the
requirements included in each haulers' agreement. At the outset of the project, the Project Team
will prepare a matrix that summarizes the requirements of each contract for Operations,
Customer Service, and Financial. The matrix will incorporate amendments to the contracts.
This step will enable the Project Team to efficiently identify the requirements, track completion
of each aspect of the individual tasks, and facilitate quality control/assurance for completion of
the project. The matrix will also be a valuable and useful tool for the City to use on an ongoing
basis for contract compliance monitoring and tracking.
The Project Team's approach to completing each task of the scope of work is described below.
P R 0 J E CT I N IT I A Tl ON
We will conduct an initial meeting with City staff and representatives from EDCO and UWS. At
this meeting, we will review the project scope, and discuss any key issues. We will provide
EDCO with a list of information we will need to conduct our audit, and confirm the project
schedule.
TASK A -OPERATIONS
For this task, the project team will conduct a route audit of each hauler's residential service in the
City. The route audit will include both field work and work conducted in the haulers' offices.
We will work with each hauler to identify a representative sampling of their regular routes in the
City, and will undertake the following as part of the route audit:
1. Labor Hours/Hours of Operation
The agreements stipulate the hours of operation for residential collection in the City, with
special hours for the day after a holiday. The hours are established so as to provide
minimal disruption and disturbance in residential neighborhoods. For this task, we will
physically observe a representative sample of the start and end times of each hauler's
service routes, as well as observe the hours of operation within the City for each haulers
regular routes. We will also review a sample of driver timecards and note the start and
end times. In conjunction with our work in Task B, we will also review the complaint
logs to identify any complaints related to hours of operation (e.g. too early or too late in
the day).
2. Disposal Activities
Each hauler is required to dispose of waste collected in the City at permitted disposal or
transfer facilities, as well as to ensure that materials targeted for diversion (recycling,
alternative daily cover, or other processing) are taken to permitted, licensed facilities for
proper handling. For this task, we will review company data on disposal, recycling,
diversion and processing, and compare it to independent disposal reports we obtain from
various disposal and processing facilities, and the Los Angeles County Solid Waste
24 E-53
City of Rancho Palos Verdes SCS fNGINHRS
Information System (SWIMS). We will verify delivery and proper handling of each
specified waste stream, to the facility designated by the company, including:
Solid waste (trash) transport and disposal at permitted landfills in Los Angeles
and Orange Counties.
Green waste transport and use as alternative daily cover (ADC) at permitted
landfills in Los Angeles and Orange Counties.
Mixed recyclables collection and processing at regional permitted MRFs.
Used oil and filters collection and processing at certified processing centers.
Electronic waste collection and processing at certified processing centers.
Bulky waste collection and recycling or disposal at permitted facilities.
3. Dedicated Routes
The agreements specifically require the haulers to collect waste and recyclables in the
City on dedicated routes, to ensure reporting of waste disposal and diversion is specific to
the City, and is performed accurately. In order to verify that EDCO and UWS have
operated dedicated routes in the City, we will follow a representative sampling of trucks
during their regular collection route. We will then compare this data with disposal data
from each hauler and the disposal facilities to verify that the waste collected in the City
was not commingled with other jurisdictions.
4. Vehicles Evaluation
This task will consist of reviewing each company's fleet of trucks that are used in the
City. We will note the quantity, type, fuel type, year, and condition of each vehicle used
in the City, and verify that the fleet meets the requirements designated in the franchise
agreements.
We will obtain Excel downloads of al/ landfill and processing facility transactions for
each hauler. We will sort these by total weight and compare the total weight to each
vehicle's Gross Vehicle Weight Rating (GVWR), which is the vehicle legal weight limit.
We will prepare a list of any vehicle loads over the legal weight limit.
The California Vehicle Code requires the California Highway Patrol to inspect California
truck terminals every two years. Known as the Biennial Inspection of Terminals, or
"BIT" program~ it is the legal responsibility of every motor carrier to submit an
application and fee to the CHP for inspection of their terminals. A terminal is any place
from which a vehicle is regularly garaged, maintained, operated or dispatched from. For
this task, we will review each haulers BIT inspection records to verify they have obtained
a satisfactory rating. Even though the hauler may have received a Satisfactory rating,
there are sometimes comments on the BIT inspection reports that are of interest to the
jurisdictions. Therefore, we will also review the CHP inspector's comments, and obtain
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City of Rancho Palos Verdes SCS FNGINHRS
explanations for any significant comments (vehicles removed from service, drivers
working more than 12 hours, etc.).
5. Quarterly and Annual Reports
Each hauler is required to submit to the City quarterly and annual reports on the
quantities of materials collected in the City, including refuse, recycling, green waste,
electronic waste, oil, filters and bulky items. The reports must indicate the final
destination of the disposed waste stream, and include a breakdown of the types and
quantities of recyclables collected. City facility collection is also included, as well as
recycling from special events. The report also includes a breakdown of the residential
disposal rate, transformation, and greenwaste tonnage, and calculates an overall
residential diversion rate (with and without transformation). SCS team members review
these reports on a regular basis for the City, and often provide input to the City on any
anomalies in the reported tonnages. This task will review the quarterly and annual
reports for the project term, and verify accuracy and completeness. We will accomplish
this by calculating standard industry ratios (lbs. per home, lbs. per cubic yard, ), and
compare these to industry averages. We will also corroborate the tonnage amounts by
comparing them to reports we independently obtain from landfill and processing
facilities.
6. Diversion
The haulers are responsible for meeting diversion requirements that enable the City to
meet and exceed its obligations under AB 939 and LARA. The haulers include this
information in their quarterly and annual reports. By reviewing the reports and
supporting weight tickets from destination facilities, the Project Team will verify the
following:
a. Diversion of items from City facilities and special events, including paper shredding
events, City Hall and Parks recycling, and beverage container recycling from the 4th
of July festival, Whale of a Day, and other City events.
b. Diversion of Green Waste for ADC or other beneficial use.
c. Diversion of commingled Recyclables, and the quantity of residuals, in order to
evaluate if the hauler is attaining the maximum diversion credit.
d. Diversion of green waste and mixed recyclables to diversion facilities in order to
obtain the maximum diversion credit.
TASK B -CUSTOMER SERVICE
The City of Rancho Palos Verdes objective is to provide the highest quality of service to its
residents. Over the years, the City has implemented a variety of policies and contractual
requirements in their service agreements with the residential haulers in order to meet this
objective. For this task, the project team will undertake the following:
1. Review Complaints and Resolutions Documentation
One method of evaluating customer service is to review complaint logs of the franchised
haulers. For this task, we will review customer complaint logs of a representative sample
26 E-55
City of Rancho Palos Verdes SCS FNGINHRS
(1-2%) of each hauler's accounts. The review will include the nature of the complaint,
frequency of and type of complaint, timing of resolution, and customer satisfaction with
resolution method.
2. Review Public Outreach and Education Effort
The haulers are required to provide Public Outreach and Education to its customers
regarding services, changes to service (holidays, new programs, etc.) as well as other
communications. We will review copies of materials that are developed and distributed
to residents, and evaluate them for timeliness, completeness of information, aesthetics,
and ease of understanding.
TASK C -FINANCIAL
The purpose of Task C is to verify the haulers are fulfilling the financial terms of their
agreements. The scope of work for this task will vary between the two haulers, based on
differences in their agreements. In addition, changes to the recycling rebate requirement in
January 2013 will necessitate a pre and post January 2013 methodology for that aspect of the
financial analysis.
The following scope of work will be undertaken for Task C.
1. Customer Billing Records.
Each hauler has approved rates for their residential customers. The rates are based on the
level and type of services and in some cases the location of the residence. For this task,
SCS will obtain an Excel download of each company's entire customer list of single-
family and multi-family. These lists will include each customer's name, service address,
number and sizes of containers, and type of service. We will sort and analyze this
information. We will identify any inconsistencies in the data, and obtain any needed
explanations from each company. For the multi-family accounts, an additional scrutiny
will be conducted for the provision of adequate, no-fee-for-service recycling.
2. Collector Fee, Environmental Fee, a~d Recycling Rebate
The analysis of the collector fee and environmental fee only applies to UWS, as EDCO's
is a fixed fee and does not change. For UWS, the fee is based on gross receipts, and
therefore the project team will verify the UWS' gross receipts for the project periods, and
verify payment of a 12% Collector fee and a 3% environmental fee for each study year.
For the recycling rebate, the study will verify the Recycling Rebate payment from the
inception of the contract in July 2010 through December 2012 for both EDCO and UWS.
Beginning January 2013, the rebate was modified to become a recycling credit, which is
discussed below.
3. Monthly Recycling Credits.
In January 2013, the recycling rebate was transitioned to a customer recycling credit.
EDCO and USW issue monthly credits to the customers, based on a formula approved by
the City council. The Project Team will review the haulers records for the monthly
27
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City of Rancho Palos Verdes SCS ENGINEERS
credits, and a representative sampling of customer bills to verify the correct methodology
is being utilized, and customers are receiving the correct credit.
4. Fiscal Year 2013/2014 Rate Adjustments.
SCS Project Manager Michelle Leonard has been involved in the review of the fiscal year
rate adjustments for the past 12 years, including review of the recent rate adjustments
under the UWS and EDCO contracts. We will verify our previous work, and provide
documentation of the process.
5. Insurances, Bonds and Letters of Credit.
Both haulers are required to obtain and maintain insurance, bonds, and letters of credit in
relation to the services they provide to the City. We will request copies of the most
recent renewals of these documents, and verify they meet the requirements stipulated in
the contracts.
EXIT CONFERENCE
After we have completed our detailed procedures, we will meet with representatives of EDCO
and UWS to discuss our findings and seek to resolve any outstanding issues. We will then meet
with City staff to review our preliminary findings, and report on any outstanding issues.
PREPARE DRAFT AND FINAL REPORTS
We will prepare a draft report that describes the project background, objectives, and our findings.
We will provide a copy of the report to EDCO and UWS and to the City for their review. City
staff and the haulers will review the draft report, and provide written comments. We will
incorporate the City's and hauler's comments into the final report. If there are issues on which
the City and hauler's disagree, we will be fair to the companies and seek to accurately reflect
their perspectives in the report. However, if there are key differences between the City and the
company in the presentation of information in the report, the City's perspective will prevail. The
final report will be suitable for presentation to the City Council.
28 E-57
City of Rancho Palos Verdes $CS ENGINEERS
7 PROFESSIONAL SERVICES AGREEMENT
If selected for this project, SCS would appreciate the opportunity to discuss the possibility of
adjusting some of the wording in one or two parts of the City of Rancho Palos Verdes
Professional/Technical Services Agreement; for example, we would propose adding a Standard
of Care provision, along the lines of:
CONSULTANT shall perform its Services in accordance with the professional
standards applicable to the Services P.rovided (i.e., engineering, planning,
consulting or others), at the time such Services are rendered. CONSULTANT makes
no other warranty, either expressed or implied, as part of this Agreement.
SCS fully expects to reach consensus with the City quickly and efficiently on these discussions,
and looks forward to cooperating with the City's decisions.
29
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City of Rancho Palos Verdes
Appendix A
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SCS ENGINEERS
MICHELLE P. LEONARD
Education
BS -Environmental Studies (with honors), University of Californ.ia, Berkeley, 1980
Affiliations
Solid Waste Association of North America (SW ANA), International Board Treasurer;
Recycling and Special Waste Technical Division Past Director; Southern California
Founding Chapter, Board of Directors (2009 to Present)
Past Director, Southern California Waste Management Forum
Past President, Women's Environmental Council
Profess i·o n a I Experience
Ms. Leonard has nearly 30 years of experience in environmental consulting and project
management, with emphasis in solid waste management planning and facilities. She has assisted
public and private sector clients in the preparation of solid waste management plans; designed
and implemented waste reduction, recycling, and reuse programs; and evaluated existing
programs to identify opportunities to reduce, reuse, and recycle solid waste. Ms. Leonard has
conducted reviews of franchise agreements, rate studies, and hauler audits, and has assisted
municipalities in negotiating rates and services. Ms. Leonard has a strong working knowledge of
solid waste management regulations and practices, and has presented numerous successful
projects to city, county, and state regulators.
Relevant projects include:
City of Rancho Palos Verdes Solid Waste Programs, Rancho Palos Verdes, CA. Project Director.
Provides annual solid waste management services. Work includes a series of projects intended to
increase the City's diversion, and review of hauler services and reports. Annually conduct rate
adjustment analysis, including verifying compliance with the methodology included in the haulers
agreements, and verifying disposal costs, CPI, and other factors. Other services include reviewing
quarterly and annual hauler reports for accuracy and diversion compliance, coordinating with
haulers for Mandatory Commercial Recycling implementation and monitoring, reviewing C&D
debris management plans, preparing the City's Annual Report for LARA/ CalRecycle submittal,
and reviewing and analyzing legislation.
Franchise Agreement Review and Negotiations, City of Lakewood, CA. Project Manager. SCS
has been the City of Lakewood's Solid Waste Consultant since 2001, and provides a variety of
services, including contract review and compliance auditing, program design and implementation,
and reporting and monitoring. The City of Lakewood has had one hauler since the City's inception
that collects all solid waste generated in the City. When that family-owned business was purchased
by EDCO Disposal in 2005, the City took the opportunity to review the existing contract. SCS
assisted the City in conducting a comprehensive review of the agreement, updating the contract to
meet modem contract language, and negotiating with the hauler for enhanced services.
Subsequently, the hauler proposed new services for the City, including a fully-automated residential
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MICHELLE P. LEONARD SCS ENGINEERS
collection program. SCS created a financial model to evaluate the rates proposed by the hauler for
implementation of the new system, and identified the true costs to the City and its residents for the
potential program. As a result of the analysis, the program was not implemented in the City at that
time.
The hauler is required to submit an Annual Report to the City which summarizes their compliance
with the provisions of their contract. SCS is responsible for reviewing the Annual Report, and
preparing comments and requests for additional information, as necessary. Based on SCS' review
of the report, the hauler may be required to undertake additional work or to amend the report.
Solid Waste Franchise Agreement Audit, Redondo Beach, CA. Project Director. Performed an
independent audit of the Solid Waste Handling Services Agreement between the City of Redondo
Beach and Consolidated Disposal Service. The project included reviewing background information
relative to the operation of the City's solid waste system, issuing a request to Consolidated for
pertinent financial and operational data and documents, verifying the supporting documentation and
recalculating the AB 939, administration, and HHW fees. Also sampled commercial bin service
accounts for testing and performed selected site inspections to document service levels and
contacted the largest multi-family accounts by telephone and/or performed selected site inspections
to identify any differences with the hauler's customer database. Prepared a report that documented
the findings and recommendations.
Franchise Agreement Review and Evaluation, City of Baldwin Park, CA. Project Manager. The
City's exclusive franchise includes the collection of residential, commercial roll-off boxes and
industrial waste. The contract has been in effect for over 20 years, beginning with a small local
company, Webster Disposal, that was subsequently purchased by Waste Management. The contract
has been amended four times, making it difficult to review, enforce, and renegotiate SCS was
tasked with conducting a comprehensive review of the original contract and all amendments, and
re-organizing the entire agreement in order to make it useable and to make sure all of the
amendments and original provisions were in place. Following completion of a new draft
agreement, SCS and the City met with the hauler to review the changes page by page, and to ensure
all parties were agreeable to the revised agreement. The revised contract was accepted by both
entities. As part of the process, SCS prepared a detailed compliance checklist matrix that outlined
by frequency (day, week, month, quarter, and year) the requirements of both the hauler and city.
The City and hauler utilize this checklist to review on a regular basis compliance with the
provisions of the contract.
Zero Waste Strategic Plan, City of Pasadena, CA. Project Manager for the Zero Waste Strategic
Plan for the City, which includes evaluating existing programs and determining needs, performing a
waste characterization study, identifying options to address needs, developing guiding principles,
and screening and selecting options for implementation. The project also includes a stakeholder
engagement process, including workshops and outreach efforts.
Zero Waste Strategic Operations Plan, City of Santa Monica, CA. Project Manager responsible
for preparing a strategic operations plan for the City that evaluates the current conditions, and
will recommend policies, programs and infrastructure to reach the City's goal of zero waste by
2030. The project includes the preparation of a zero waste ordinance, guiding principles, waste
characterization and generation projections, and the review and recommendation of options. The
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MICHELLE P. LEONARD SCS ENGINEERS
plan will also evaluate the impacts on the City's rate structure, and mechanisms to finance the
program.
City of Irvine, Zero Waste Technical Assistance, Irvine, CA. Project Director. This project
originated in 2004 to include conducting waste audits and providing information to businesses on
recycling and waste reduction. The project was later expanded to include outreach and education
to schools and other city facilities, zero waste program for restaurants, preparation of a
construction and demolition debris ordinance, preparation and negotiations for a semi-exclusive
solid waste franchise agreement, and recycling programs for special events and public venues.
City of Anaheim Disposal Agreement Rate Model Analysis, Orange County, CA. Project
Director. Performed an analysis of the landfill rate model prepared by Orange County, CA. The
34 cities of Orange County have a disposal agreement with the County to dispose of all city
waste at the three County-owned landfills for a set tipping fee. The existing IO-year agreement
expires in.2009, and the County has proposed a new tipping fee, based on a financial model.
Identified and advised the Waste Management Committee of the Orange County City Managers
Organization about any facts or issues that may enable the cities to constructively negotiate
contract terms or a contract rate that is more favorable to the cities. assisted the cities in
analyzing the relative merits of the alternative fee structures (i.e., flat fee vs. adjusted annually
based on inflation), and assisted the cities in designing a policy and methodology for the County
to declare a dividend (or rate reduction) in the event actual expenses are less than projected or if
actual tonnage quantities are greater than expected.
City of Santa Maria, Collection and Disposal Rate Study, Santa Maria, CA. Project Director.
Worked with the city to review the existing collection and disposal rates charged to residents,
businesses and industrial customers. A thorough analysis of existing rate structure has been
completed, based on the city's budget, operations, and financial reports. A financial model was
developed that can be utilized to estimate the appropriate rate structure for all aspects of the city's
solid waste system, and to estimate the costs and revenues associated with specific system
programs.
City of Pasadena Residential Collection Rate Study, Pasadena, CA. Project Director. The City of
Pasadena currently provides solid waste and recycling collection service to approximately 27,000
residential units (single-family residences and multi-family units) within the City's incorporated
limits. A rate model was developed that enabled projections of financial performance of
residential refuse collection for the upcoming 10-year planning period (2006 to 2015), and model
various user rate structures to help eliminate the Refuse Fund's existing negative cash balance.
Based on data and information provided by City staff, these individual spreadsheets were linked
to develop an overall rate model to evaluate the impact of critical City cost and program
revenues areas on different potential rate options.
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SCS ENGINEERS
MARIA HERNANDEZ
Education
BA -Interdisciplinary Field Studies, University of California, Berkeley, 2003
AS -Mathematics, College of the Canyons, 1995
Recycling and Resource Management Certificate, Golden West College, 2012
Affiliations
Solid Waste Association of North America (SW ANA)
Professional Experience
Ms. Maria Hernandez is a specialist in resource management and recycling. She provides
support services to SCS' sustainable materials management group. Since joining SCS in 2013,
she has performed a variety of projects for the City of Rancho Palos Verdes, including evaluating
and recommending enhancements to the City's Parks and City Hall recycling program, waste
characterization study of recyclables collected in City parks, Used Oil program compliance,
monitoring, and reporting, education and outreach for the mandatory commercial recycling
program, and monitoring of hauler reports and disposal reporting system data. She has
conducted business waste assessments in the City of Irvine and Pasadena, and performed
research for composting feasibility studies. Prior to joining SCS, she assisted with a large
project for the Los Angeles Unified School District's expanded recycling program. She also
served as an intern with CalRecycle while completing her Recycling and Resource Management
Certificate in 2012. Ms. Hernandez is bilingual in Spanish. Her relevant project experience is
summarized below.
City of Rancho Palos Verdes AB 939 and Used Oil Program. Staff professional. Provides staff
support for all aspects of the City's solid waste and used oil program, including evaluating and
recommending enhancements to the City's Parks and City Hall recycling program, conducting a
waste characterization study of recyclables collected in City parks, Used Oil program
compliance, monitoring, and reporting, education and outreach for the mandatory commercial
recycling program, and monitoring of hauler reports and disposal reporting system data.
Third Party Diversion Audits, Pasadena, CA. Verified third party diversion for commercial
businesses in the City of Pasadena, on behalf of Athens Services. Project includes contacting
businesses to verify the types and quantities of materials that are source reduced, recycled,
composted or diverted through programs outside of the haulers control.
Disposal Reporting System Monitoring and Corrections, San Gabriel, CA. Conduct regular
tracking of Disposal Reporting System (DRS) data for the City of San Gabriel, as provided by
Los Angeles and other counties. Review the reports for accuracy, and identify waste that was
not originated in San Gabriel. Contact haulers and verify waste origin, prepare letters to
jurisdictions, County Public Works Department and Cal Recycle to correct misallocated waste.
City of Irvine, Zero Waste Technical Assistance, Irvine, CA. Conducts waste audits and provides
information to businesses on recycling and waste reduction. Site visits are arranged for and
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MARIA HERNANDEZ SCS ENGINEERS
conducted with commercial and multi-family customers, and a report is prepared including
recommendations for enhancing waste reduction, recycling, and corp.posting. The project also
includes design of outreachy materials, including a Business Recycling Kit consisting of
containers to collect recyclables, posters, memos, and other outreach materials, and a spreadsheet
for tracking collection and diversion.
Solid Waste System Audit, Malibu, CA. Participated in an evaluation of the City;s solid waste
program to identify the strengths, weaknesses, opportunities and challenges of the existing
program. Tasks included preparing a comparison of the City's policies and programs with
industry standards and trends. Maria contacted 10 municipalities with similar demographics to
Malibu, and obtaining information on existing policies and programs in place, and relevant
information, such as year adopted or implemented, affected sector, diversion impacts and/or rate,
cost per capita, household or business. This information was compiled in a matrix to facilitate
review and evaluation by the City.
•'
City of Lakewood AB 939 and Used Oil Support Services. Review disposal data and monitor
DRS reports. Provide assistance for completion of AB 939 Annual Report. Complete
inspections of certified used oil centers. Prepare outreach and education materials as necessary.
Composting Feasibility Study, Toledo, OH. Provide research and analysis for study that is
evaluating the potential to develop a regional composting facility for leaves and food waste.
Project assignments have included siting research, mapping, surveys, and report preparation.
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RESUME -DAVID L. DAVIS, CMA CONSULTANTS
Education
California State University -Fullerton, BA Finance 1983
Qualifications and Experience
Mr. David Davis is a Certified Management Accountant (CMA) with over 25 years of experience
in the field of solid waste management. Mr. Davis' expertise lies in working with municipal
managers to maximize the value of the solid waste services provided to their ratepayers. He
has held executive management positions in both the private and public sectors, and has
extensive experience in providing business advisory services to local government in the field of ..
solid waste management.
As a chief financial executive for local hauling and landfill divisions of a national solid waste
management company, Mr. Davis was responsible for financial reporting, budgeting, cost
analysis, billing and collections. He also managed the accounting and rate analysis sections of
the City of Riverside's Department of Public Utilities.
As a solid waste consultant, Mr. Davis has provided management consulting services to over 50
municipal clients in the areas of rate setting, service procurement, regulatory compliance,
waste diversion, facility feasibility analysis, and operational assessment.
Mr. Davis has specific experience in:
+ Analysis and design of customer rates for refuse coHection, transfer, processing and
disposal operations;
+ . Development and evaluation of competitive proposals for waste collection, recycling, and
transfer service;
+ Feasibility studies for waste processing, waste transfer, and landfill gas projects;
+ Verification of the proper payment of solid waste fees;
+ Management reviews of solid waste operations;
+ Evaluation of alternative waste diversion programs;
+ Solid waste program planning and funding; and,
+ Evaluating internal management controls.
This specific experience is described in more detail on the following pages.
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RESUME -DAVID L. DA VIS, CMA CONSULTANTS
Solid Waste Rate Analysis and Design
·Analyzed time and motion data from municipal refuse collection operations. Determined the
cost of automated residential and manual commercial collection service. Developed volume-
based rates for residential customers.
Analyzed the incremental cost and savings related to implementing curbside greenwaste
programs for several cities.
Developed computer spreadsheet models for several cities that allocate solid waste operating
expenses among various service types and jurisdictions . . .
Reviewed proposals for solid waste rate adjustments for over 20 municipal clients. This
included:
+ Performing variance analysis and on-site detail testing of the service provider's financial and
operational records;
+ Evaluating the r~asonableness and logical consistency of revenue and expense allocations;
+ Evaluating the reasonableness of forecasted revenues and expenses;
+ Making appropriate revisions to the proposed rate adjustments;
+ Calculating new rates for various service types (i.e., residential, commercial, rolloff); and,
+ Presenting findings and recommendations to city staff and elected officials.
Analysis of Solid Waste Transfer, Processing, and Disposal Facilities
Developed a computer spreadsheet model to allocate costs and set tipping fees for a county's
two transfer stations and landfill. The model enabled the county· to align the relationship
between transfer tipping fees and disposal tipping fees based on market conditions and the
county's operating costs. Developed a users' manual and trained county staff in the use of the
model.
Performed a feasibility study of a proposed waste processing and transfer facility. Estimated
the facility throughput and associated tipping fee for three alternative facility designs.
Performed competitive analysis of nearby waste transfer and processing facilities. Determined
the impact on residential ratepayers.
Evaluated an inter-agency agreement to participate in a proposed public-private partnership for
waste transfer service. Performed a cost-benefit analysis and risk assessment, and developed
a negotiating strategy for a city.
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RESUME -DAVID L. DAVIS, CMA CONSULTANTS
Evaluated the reasonableness of waste transfer and mixed waste processing fees offered by a
private MRF operator to a city. Evaluated alternative waste transfer and disposal options
available to the City. Performed a comparison of the proposed fees to the tipping fees from
similar nearby material recovery facilities.
Analyzed the feasibility and valuation of a proposed landfill gas co-generation project.
Evaluated public/private partnership alternatives to develop a MRF/composting facility. The
partners included a city and a county, two private haulers, and a local not-for-profit recycler.
Procurement of Solid Waste Services
Developed a request for proposals (RFP) document and draft franchise agreement for exclusive
refuse collection and recycling service. Participated in public meetings to receive City Council
and community input regarding alternative service features.
Evaluated a sole source pro.posal to a city for exclusive residential, commercial, and industrial
solid waste collection and recycling service.
Evaluated a proposal to assign an exclusive refuse collection agreement to a group of investors.
This involved evaluating the financial capability and service history of the investors, and
presenting our findings and recommendations to city staff.
Conducted an analysis of two competing proposals to develop a material recovery facility and
transfer station. Analyzed financial as well as public policy and siting issues.
Prepared a response to an RFP for an exclusive residential refuse collection contract.
Developed bid prices and participated in subsequent contract negotiations; the contract
included residential collection, curbside recycling, yardwaste collection, waste oil and
household hazardous waste programs.
Developed criteria for a city for use in evaluating the qualifications of refuse collection
companies in connection with the issuance of a Request for Qualifications for exclusive refuse
collection service.
Verification Billing Accuracy and Proper Payment of Franchise Fees
Audited the receipts, disposal tonnage, and recycling tonnage of over 40 refuse collection
companies to verify their AB 939 fee payments to various cities.
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RESUME -DAVID L. DAVIS, CMA CONSULTANTS
Assessment of Solid Waste Collection Operations
Performed a comprehensive financial and operational review of solid waste services provided
by a franchised hauler, including reasonableness of rates charged, verification of fees paid to
the city, reporting methods used at the recycling center, verification of proper billing in
accordance with approved rates, analysis of customer complaints, and evaluation of the
necessity of special service charges such as wheel-outs. Performed a route audit of all bin
service customers.
Conducted a performance review of a city's exclusive franchised hauler that included an
evaluatio11.of the hauler's customer service, diversion reporting, and program implementation.
Supervised the evaluation of a city's residential refuse collection methods (both fully-
automated and manual hard-to-serve accounts), vehicle routing, and maintenance operations.
Performed an assessment of the services provided to a city by its exclusive solid waste service
provider. This included reviewing the service provider's management structure, personnel
policies, billing procedures, internal controls, customer service, worker productivity, and
tonnage tracking procedures. It also included reviewing the service provider's franchise
agreements, compensation methodology, and rate structure. Documented findings and
recommendations, and prepared a report for the City Council.
Developed internal control procedures to coordinate a city's billing system with the service
provided by a disposal company. Converted a refuse collection company's manual route books
to a computerized system. Conducted route audits and time and motion analyses of refuse
collection operations.
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RESUME-DAVID L. DAVIS, CMA CONSULTANTS
Analyses of Public vs. Private Operations
Analyzed alternative public/private partnerships to develop and operate a material recovery
facility. Obtained information about other public/private MRF partnerships. Developed
alternative public/private arrangements and identified advantages and disadvantages of each
on the projects stakeholders (i.e., county, city, refuse haulers, etc.).
Evaluation of Waste Diversion Programs
Evaluated the feasibility and estimated the cost of reaching 50% waste diversion without using
a material recovery facility. Confirmed the city's current waste diversion rate.using the method ..
approved by the California Integrated Waste Management Board {CIWMB). Estimated the cost
impact of using various waste diversion programs (i.e., curbside recycling, greenwaste,
commercial and multi-family recycling, etc.) to reach the 50% diversion goal.
Evaluated a city's incremental cost and additional waste diversion resulting from proposed
alternative residential recycling methods. The alternative methods included mixed waste
processing, co-collection, co-mingled collection, and greenwaste collection.
Evaluated the efficiency of various waste diversion options for a City. The analysis included
estimating and comparing the incremental cost per additional ton diverted for the various
waste diversion options.
Evaluated alternative greenwaste collection methods for a City. The various methods included
having residents provide their own containers, having containers provided by the service
provider, and having every other week service. Evaluated the incremental cost and additional
diversion for each method.
Solid Waste Program Planning and Funding
Developed and implemented a non-exclusive franchise system for refuse collection in a city
with over 50 independent hauling companies. This involved reviewing the city's solid waste
program costs, estimating the level of city-wide gross receipts, forecasting the franchise fee
revenues to the city, developing a standard non-exclusive franchise agreement, conducting an
orientation meeting with the city's refuse haulers, and developing application materials and
procedures for the haulers to enter into non-exclusive franchise agreements with the city.
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RESUME -DAVID L. DAVIS, CMA CONSULTANTS
Assisted a city in evaluating alternative solid waste service arrangements. This included
presenting city staff and a subcommittee of the city council with the advantages and
disadvantages of public vs. private service, exclusive vs. non-exclusive service, and city-wide
service vs. multiple service areas. Presented recommendations to the city council.
Analyzed the impact on system-wide refuse collection costs of alternative transfer station and
landfill facility siting scenarios for a regional association of local governments. Developed a
comprehensive financial model to calculate and analyze the system-wide cost of collection,
hauling, processing, transfer, transportation and disposal for several alternative combinations
of transfer stations, recycling facilities, and landfills .
. ·
Public and Private Sector Financial Administration
Served as accounting/finance manager for a city's municipally-owned electric and water utility.
Responsible for accounting and rate analysis. Supervised the preparation of monthly financial
statements and annual budget. Developed an accounting system for a joint powers agency
with annual revenues of $30 million.
Served as controller for the hauling and landfill divisions of a major waste management
company. Responsible for budgeting, financial reporting, internal control, productivity
measurement, cost analysis, billing, collections, customer service, and office administration.
Served as a project controller for various capital projects, including a material recovery facility,
an office/maintenance facility, and a landfill expansion.
Professional History
MSW Consultants, Temecula, California, February 2000 to present.
Hilton Farnkopf & Hobson (now HF&H Consultants): Newport Beach, California, Senior
Associate, 1996 to January 2000; Associate, 1992 to 1995.
City of Riverside: Riverside, California, Utilities Accounting/Finance Manager, 1991 to 1992.
Waste Management, Inc.: Lancaster and Hemet, California, Controller, 1986 to 1991.
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RESUME -DAVID L. DAVIS, CMA
Professional Organizations
Southern California Waste Management Forum {Member -Board of Directors)
Solid Waste Association of North America (SWANA)
Institute of Management Accountants {IMA)
Publications and Speeches
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CONSULTANTS
"Solid Waste Service Arrangements and Rate Setting" presented at the NBS Utilities Finance
Workshops in Livermore and Temecula, May and June 2010.
"Greenwaste Briefing" Presented to the San Gabriel Valley Council of Governments Solid Waste
Working Group, December 2008.
"Analyzing Cost of Services and Determining Rates for Solid Waste Agencies" presented at the ..
American Public Works Association Annual Congress and Exposition in New Orleans, August
2008.
White Paper "Report to the City of Monrovia Regarding Service Arrangements for Solid Waste
Collection," May 2008.
"Solid Waste: Rate Setting and Finance Guide, Analyzing Cost of Services and Designing Rates
for Solid Waste Agencies, APWA Press, August 2007, 60 pages, with M. Rogoff, R. Flint and B.
Wallace.
"Managed Competition: The Credibility Factor." Presented at SWANA's 3ih Annual
International Solid Waste Exposition, October 1999.
"Comparing Waste Transfer, Processing and Disposal Alternatives: A System-wide Approach."
Presented to the San Gabriel Valley Council of Governments Solid Waste Committee, March 31,
1997,
"Cost-Based Rates: The Route to Commercial Collection Efficiency." MSW Management -The
Journal for Municipal Solid Waste Professionals, September/October 1996.
Continuing Education
Managing Municipal Solid Waste Systems, SWANA
Transfer Station Technical Course; SWANA
Professional Certification
Certified Management Accountant, IMA
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SCS ENGINEERS
Task
Proied Initiation/Management
A. Operations
B. Customer Service
c. Financial
Exit Conference
Reports
City of Rancho Palos Verdes
Residential Solid Waste Services Audit
Proposed Project Budget
Leonard Davis
Hourly Rate $225 $190
12 8
12 44
8 0
2 84
8 12
18 32
Subtotals 60 180
Staff Adm in
$110 $75
6 2
68 0
32 0
0 0
4 0
16 0
126 2
Based on the proposed budget and allocation of time, we recommend the following breakdown by residential hauler:
EDCO Disposal Corporation: $46,280.00
Universal Waste Systems, Inc. $15,430.00
Total
Hours Labor
28 $5,030
124 $18,540
40 $5,320
86 $16,410
24 $4,520
66 $11,890
368 $ 61,710
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