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HomeMy WebLinkAboutAGMT - HF&H Consultant, LLC (analysis of solid waste contract)PROFESSIONAL SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 R. HF &H Consultants, LLC 19200 Von Karman Ave, Ste 360 Irvine, CA 92612 949 - 251 -8902 This Professional Service Agreement ( "the Agreement') is made as of huo 4.11 2018 (the "Effective Date "), by and between HF &H Consultants, LLC ( "Consultant'), a California limited liability company, and the City of Seal Beach ( "City "), a California charter city, (collectively, "the Parties "). 57296 - 0001 \1236808v1.doc RECITALS A. City desires certain professional services B. Consultant represents that it is qualified and able to provide City with such services. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services ( "Services ") set forth in the attached Exhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manger may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2.0 Term This term of this Agreement shall commence as of the Effective Date and shall continue for a term of 1 -year unless previously terminated as provided by this Agreement. 3.0 Consultant's Compensation City will pay Consultant in accordance with the fee schedule set forth in Exhibit A for Services but in no event will the City pay more than $15,000. Any additional work authorized by the City pursuant to Section 1.4 will be compensated in accordance with the fee schedule set forth in Exhibit A. 2of9 57296- 0001 \1236808v1.doc 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24 -hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 5.0 Termination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Laith Ezzet is the Consultant's primary representative for purposes of this Agreement. 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: 3of9 S7296- 0001 \1236808v1.doc To City: City of Seal Beach 211 8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: HF &H Consultants, LLC 19200 Von Karman Ave, Suite 360 Irvine, CA 92612 Attn: Laith Ezzet 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Consultant is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 8.2. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant's personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 9.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. 4 of 9 S7296- 0001 \1236808v1.doc 10.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 11.0 Insurance 11.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 11.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Professional Liability: $1,000,000 per claim /aggregate. 11.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: (1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, (3) coverage shall be primary insurance as respects the City, its directors, officials, officers, 5of9 S7296- 0001\1236808v1.doc employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage and that any insurance or self- insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it; (4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible. 11.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 11.5. Any deductibles or self- insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 12.0 Indemnification, Hold Harmless, and Duty to Defend Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively "Indemnitees ") free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys' fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of the City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, employees, agents and /or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity 6of9 S7296- 0001 \1236808v1.doc herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its directors, officials, officers, employees, agents or volunteers. All duties of Consultant under this Section shall survive termination of this Agreement. 13.0 Equal Opportunity Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non - discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 14.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 15.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both pa rties. 16.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 17.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 18.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 7of9 57296- 0001\1236808v1.doc 19.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 20.0 Prohibited Interests; Conflict of Interest 20.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code § §1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 20.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 20.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited 'conflict of interest" under applicable laws as described in this subsection. 21.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from 8of9 57296- 0001 \1236808v1.doc the losing party all of its attorneys' fees and other costs incurred in connection therewith. 22.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 23.0 Corporate Authority The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said Party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH Approved as to For By: Craig A. Steele, City Attorney CONSULTANT By: Name: Laith Ezzet Its: Senior Vice President 9 of 9 S7296- 000111236808vt.doc 19200 Von Karman Avenue, Suite 360 Irvine, California 92612 Telephone: 949 /251 -8628 www.hfh-consultants.com July 11, 2018 Mr. Patrick Gallegos Assistant City Manager City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 Re: Proposal to Provide Solid Waste Consulting Services E,xK1%11 -a Tomorrov/s Resources Today Robert D. Hilton, CMC John W. Farnkopf, PE Laith B. Ezzet, CMC Richard J. Simonson, CMC Marva M. Sheehan, CPA Robert C. Hilton, CMC Thank you for providing an opportunity to submit this proposal to the City of Seal Beach. As requested, please find below a brief summary of our firm's contracting experience, along with a proposed scope of work and fee estimate. Firm Experience Solid waste contract development and negotiations are a core part of our business, amounting to approximately one third of our annual revenues. Since its founding over 25 years ago, HF &H has performed over 100 solid waste and recycling service procurements and contract development and negotiations projects. These types of projects have included planning of diversion programs and collection services, preparing RFPs, evaluating proposals, drafting and negotiating contracts for collection of solid waste, recyclable materials, organic materials, processing services, and disposal services. All of these engagements include working in collaboration with client staff and preparing for, facilitating, and making presentations at meetings with client staff, City Councils /Board of Supervisors, and in other public forums. In many cases, our efforts have involved working with stakeholders including residents, businesses, and the hauling community to communicate upcoming changes and /or solicit input to plan future programs and services. HF &H offers the City the benefit of our experience and lessons learned through all of these projects. Through our extensive experience, we have developed work plans, practice aides, and strategies for conducting contractor selection projects in a thorough and objective manner. We have templates that are customized for each project including work plans, RFPs, and collection agreements as well as proposal evaluation forms to document each proposers qualifications, merits of their technical proposals, operating assumptions and metrics, and costs. We have faced numerous circumstances such as labor union lobbying, company publicity campaigns, elected official redirection, and concurrent contractor negotiations, and have formed strategies for handling these situations. Mr. Patrick Gallegos July 11, 2018 Page 2 of 3 Sole Source Negotiations norrow's Resources Today HF &H is an excellent partner in sole source negotiations processes as we can provide our clients with the perspective needed to ensure the negotiated contract terms and conditions are thorough, effective, and reasonable. We can also provide the technical expertise to analyze proposed costs and rate impacts to verify that program costs and customer rates are competitive. As part of your sole source negotiations, we can assist you with some or all of the following steps: • Assisting in defining the client's goals and objectives • Conducting an operational and financial review of existing contractor's operations • Identifying changes to negotiate to the existing scope of services, performance standards, and contractor compensation methods • Soliciting proposals from existing service provider in response to client's proposed changes • Evaluating proposals • Negotiating service agreement or amendments to existing agreement with existing contractor • Presenting report to City Council Scone of Work We understand the City is interested in having the existing solid waste franchise agreement analyzed to identify opportunities to update key terms and conditions. This will serve as the front -end to what may be a larger engagement to negotiate an updated agreement. The existing agreement is over 20 years old, as the City entered into the agreement on March 24, 1997, and it contains a 7 -year "evergreen' automatic renewal clause that renews annually unless the automatic renewal provision is terminated by the City, in which case the agreement would then wind down over the subsequent seven years following notice by the City. This initial project phase will consist of comparing key terms in the existing agreement to those in a modern, state -of- the -art agreement. Our analysis will include key terms related to the provision of residential, commercial and roll -off box services, rate adjustment provisions, recycling requirements, regulatory compliance with AB 341, AB 1826, and SB 1382, performance standards, reporting requirements, indemnifications, complimentary services provided at no additional charge, and other key contract requirements. We will prepare a written work product and meet once with City staff to review it. We will subsequently update the analysis based on the meeting with City staff. Our final work product will be a matrix comparing the key contract terms and services provided in the City to industry standards based on our experience. Mr. Patrick Gallegos July 11, 2018 Page 3 of 3 Fee .omorrow's Resources Today We will perform contract analysis described in the scope of work and meet once with the City for a guaranteed fixed fee of $15,000, billed in two installments as follows: - Upon submittal of the draft contract profile: $13,000 - Upon submittal of the final contract profile: $2,00 0 Total Cost: $15,000 Schedule The schedule for the work will be determined by mutual agreement and typically takes about 45 to 60 days to complete from project initiation. Very truly yours, HF &H CONSULTANTS, LLC /'�X ' Laith B. Ezzet, CIVIC Senior Vice President HF &HCON -01 B ;URESH r Acosro CERTIFICATE OF LIABILITY INSURANCE `..� D0712 6 /2 0 1 8 Y) o7nsnols THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURERIS), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License 1110757776 HUB International Insurance Services Inc. PO Box 5076 San Ramon, CA 94583 CONTACT Alvaro Sapiz ARNE., Ext: 925 415-1104 IFAX (51 231 -25%2 ( ) AIC. Nc ): 9 E-MAIL Cal.CPU@hubinternational.com INSURERS) AFFORDING COVERAGE NAIL A INSURERA:HONSton Casually Company 42374 INSURED HF &H Consultants, LLC 201 North CIVIC Drive, Suite #230 Walnut Creek, CA 94596 INSURER B: INSURER c INSURER O: INSURER E INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUER POLICY EFF POLY E %P POLICY NUMBER IC LIMITS COMMERCIAL GENERAL LIABILITY CLAIMS -MADE OCCUR EACH OCCURRENCE $ DAMMGE TO RENTEDn $ GEN'L MED EXP An one rson S PERSONALSADV INJURY 5 AGGREGATE LIMIT APPLIES PER: POLICY ,ECT TOO OTHER GENERALAGGREGATE S PRODUCTS- COMPIOP AGG $ $ AUTOMOBILE LIABILITY ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTO{{S��WWNN AUTOS ONLY AIO OS ELD CfEb SINGLE LIMIT $ BODILY INJURY Per person) $ BODILY INJURY Per awdenl $ RP OPE dent AMAGE S S UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED I I RETENTIONS $ WORKERS COMPENSATION AND EMPLOYERS LIABILITY YIN Wain' PROPRIIETgOERIPARTNER /EXECUTIVE ❑ WanEERW In NHj E)CLUDED? If pes, descnbe under DESCRIPTION OF OPERATIONS below [N/ PER I 1 OTH- TAT FIR E L. EACH ACCIDENT S E.L. DISEASE -EA EMPLOYEE S EL . DISEASE - POLICY LIMIT $ A A Professional I Retro Date: 8/1/1989 H717110248 H717110248 09/06/2017 09/06/2017 09/06/2018 09/06/2018 Occurrence /Aggregate Retention: 2,000,000 10,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES ACORD 101, Additional Remarks Schedule, may be attached if more space is required) For Information Purposes Only. CERTIFICATE HOLDER CANCELLATION ACORD 25 (2016103) ©1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Seal Beach 211 Eighth Street THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Seal Beach, CA 90740 AUTHORIZED REPRESENTATIVE }Nl/.1LHdC6✓�al ACORD 25 (2016103) ©1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD