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A-2023-135
CITY CLERK
DATE: CONSULTANT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND
p: Pwft UP) STEARNS, CONRAD & SCHMIDT, CONSULTING ENGINEERS, INC. FOR A COST -
OF -SERVICE STUDY FOR THE SANITATION SERVICES USERS CHARGE
THIS AGREEMENT is made and entered into on this I" day of August, 2023 by and between
N Stearns, Conrad & Schmidt, Consulting Engineers, Inc. ("Consultant'), and the City of Santa Ana,
® a charter city and municipal corporation organized and existing under the Constitution and laws of
n the State of California ("City").
N
C3 RECITALS
A. The City desires to retain a Consultant having special skill and knowledge in conducting a
cost of service study for the Sanitation Services User Charge ("Sanitation Fee")
B. Consultant represents that Consultant is able and willing to provide such services to the
City.
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Consultant shall perform during the ter
including all labor, materials, tools, equipment,
and adequately complete the services described
incorporated by reference.
2. COMPENSATION
n of this Agreement, the tasks and obligations
and incidental customary work required to fully
and set forth in Exhibit A, attached hereto and
a. City agrees to pay, and Consultant agrees to accept as total payment for its services for
City, the rates and charges identified in Exhibit B and incorporated herein by this
reference. The total amount to be expended during the term of this Agreement shall
not exceed $82,875, which includes a contingency amount of $16, 575.
b. Payment by City shall be made within forty-five (45) days following receipt of proper
invoice evidencing work performed, subject to City accounting procedures. Payment
need not be made for work which fails to meet the standards of performance set forth
in the Recitals which may reasonably be expected by City.
3. TERM
This Agreement shall commence on the date first written above for a three (3) year term
with the option for the City to grant tip to one (1) two (2)-year renewal, exercisable by a writing by
the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15,
below.
4. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent Consultant and not an employee of the City. This Agreement is not intended nor shall
it be construed to create an employer -employee relationship, a joint venture relationship, or to
allow the City to exercise discretion or control over the professional manner in which Consultant
performs the services which are the subject matter of this Agreement; however, the services to be
provided by Consultant shall be provided in a manner consistent with all applicable standards and
regulations governing such services. Consultant shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating to employees and shall be
responsible for all applicable withholding taxes.
5. OWNERSHIP OF MATERIALS
All drawings, specifications, reports, notes and data developed pursuant to this Agreement are
instruments of service, and as such the original documents and data are and remain the property of
Consultant. Consultant grants a non-exclusive, perpetual license to use the deliverables
(Documents & Data), identified in Exhibit A, to the City, as well as permission to sublicense the
Documents & Data to others solely for the purpose of performing obligations related to this
Agreement. Consultant shall require all subcontractors to agree in writing that Documents & Data
prepared pursuant to this Agreement in their subcontracting agreements grant a non-exclusive,
perpetual license to use its deliverables, as well as sublicense such Documents & Data to the City
as well as others, solely for the purpose of performing obligations pertaining to or related to this
Agreement. Consultant agrees that it has the legal right to license Documents & Data. Consultant
makes no representation that it has any legal right to license nor has any obligation as to the
accuracy or content of documents or data provided to Consultant by the City.
6. INSURANCE
Consultant shall procure and maintain for the duration of the contract insurance against
claimsfor injuries to persons or damages to property which may arise from or in connection with
theperformance of the work hereunder and the results of that work by the Consultant, his agents,
representatives, employees or subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
• Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering
COL on an "occurrence" basis, including property damage, bodily injury and personal &
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advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate
limit applies, either the general aggregate limit shall apply separately to this project/location
(ISO CG 25 03 or 25 04) or the general aggregate limit shall betwice the required occurrence
limit.
• Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if
Consultant has no owned autos, hared, (Code 8) and non -owned autos (Code 9), with limitno
less than $1,000,000 per accident for bodily injury and property damage.
• Workers' Compensation insurance as required by the State of California, with Statutory
Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident
for bodily injury or disease.
• Professional liability (errors and omissions) insurance, with a combined single limit of not
less than $1,000,000 per claim with $2,000,000 in the aggregate.
If the Consultant maintains broader coverage and/or higher limits than the minimums
shown above, the City requires and shall be entitled to the broader coverage and/or the higher
limits maintained by the Consultant. Any available insurance proceeds in excess of the
specified minimum limits of insurance and coverage shall be available to the City.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the
Consultant to provide proof of ability to pay losses and related investigations, claim administration,
and defense expenses within the retention. The policy language shall provide,or be endorsed to
provide, that the self -insured retention may be satisfied by either the namedinsured or City.
Other Insurance Provisions
The general liability policy is to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents, and volunteers are to be covered as
additional insureds with respect to liability arising out of work or operations performed
by or on behalf of the Contractor including materials, parts or equipment furnished in
connection with such work or operations.
2. For any claims related to this contract, the Consultant's insurance coverage shall be
primary insurance coverage at least as broad as ISO CG 20 0104 13 as respects the City,
its officers, officials, employees, agents, and volunteers.
3. The Insurance Company agrees to waive all rights of subrogation against the City,its
elected or appointed officers, officials, agents, and employees for losses paid underthe
terms of any policy which arise from work performed by the Consultant for the City. This
provision also applies to the Consultant's Workers' Compensation policy.
4. Each insurance policy required above shall provide that coverage shall not be canceled,
except with notice to the City.
Acceptability oflnsurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current
A.M. Best's rating of no less than A: VII, unless otherwise acceptable to the City.
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Verification of Coverage
Consultant shall furnish the City with original Certificates of Insurance including all required
amendatory endorsements (or copies of the applicable policy language effecting coverage required
by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all
policy endorsements to City before work begins. The City reserves the right to require complete,
certified copies of all required insurance policies, including endorsements affecting the coverage
required by these specifications, at any time.
Special Events Coverage far Contractors
Special events coverage is available for an additional fee to provide the liability insurance required
by this agreement. Consultant can obtain additional information and cost from the City.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the
requirements stated herein, and Consultant shall ensure that City is an additional insured on
insurance required from subcontractors.
Special or Low Risk Activities
City reserves the right to modify these requirements, including limits, based on the nature ofthe
risk, prior experience, insurer, coverage, or other special circumstances. The City reserves the right
to modify or waive insurance requirements for certain low risk recreational activities.
7. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers,
agents, employees, contractors, special counsel, and representatives from liability for personal
injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for
personal injury, including death, and claims for property damage, which may arise from the
negligent operations of the Contractor, its subcontractors, agents, employees, or other persons
acting on its behalf which relates to the services described in section 1 of this Agreement. This
indemnity and hold harmless agreement applies to all claims for damages, just compensation,
restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the
events referred to in this Section or by reason of the terms of, or effects, arising from this
Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the
defense of the City, including fees and costs for special counsel to be selected by the City,
regarding any action by a third party challenging the validity of this Agreement, or asserting that
personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal
or property rights arises by reason of the terms of, or effects arising from this Agreement. City
may make all reasonable decisions with respect to its representation in any legal proceeding.
Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code
Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section
2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful
misconduct of the Contractor.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and
employees against any and all liability, including costs, for infringement of any United States'
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letters patent, trademark, or copyright infringement, including costs, contained in the Documents
& Data provided by Consultant to the City pursuant to his Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with respect to
the costs incurred under this Agreement and any services, expenditures, and disbursements
charged to the City for a minimum period of three (3) years, or for any longer period required by
law, from the date of final payment to Consultant under this Agreement. All such records and
invoices shall be clearly identifiable. Consultant shall allow a representative of the City to
examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to this Agreement for a period of three
(3) years from the date of final payment to Consultant under this Agreement.
10, CONFIDENTIALITY
Consultant shall not disclose, or permit disclosure of any information designated by the
City as confidential, except to its employees and other consultants who need such information in
order to properly execute the services of this Agreement. This provision shall not apply to
information which: (1) has been published and is in the public domain, (2) has been provided to
Consultant by third parties who have the legal right to possess and disclose the information, (3)
was in the possession of Consultant prior to the disclosure of such information to Consultant by
the City, (4) is required by law or any governmental agency to be disclosed, or (5) would require
disclosure to comply with the ethical obligations of Consultant to protect the public.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under this
Agreement.
12. NON-DISCRIMINATION
Provider shall not discriminate because of race, color, creed; religion, sex, marital status,
sexual orientation, gender identity, gender expression, gender, medical conditions, genetic
information, or military and veteran status, age, national origin, ancestry, or disability, as defined
and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization,
promotion, termination or other employment related activities or any services provided under this
Agreement. Provider affirms that it is an equal opportunity employer and shall comply with all
applicable federal, state and local laws and regulations.
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13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Contractor, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the terms
of this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Contractor. The parties agree that any
terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Contractor,
Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement shall
be construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other Contractors retained by City.
15. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant
compensation for all services performed by Consultant prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case
have a perpetual license to use the Documents & Data consistent with Section 5 of
this Agreement.
b. Payment need not be made for work which fails to meet the standard of
performance specified in the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and signed by
the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or
remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not
similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties further agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or
arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and
in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
19. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement
shall be in writing and shall be deemed to be properly given if delivered in person or mailed by
first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in
the manner provided in this Section, to the following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956
With courtesy copies to:
Executive Director, Public Works Agency
City of Santa Ana
20 Civic Center Plaza (M-xx)
P.O. Box 1988
Santa Ana, California 92702
To Contractor:
Vita Quinn
MBA Director of Management Services
Stearns, Conrad & Schmidt, Consulting Engineers, Inc.
4683 Chabot Drive, Suite 200
Pleasanton, CA 94588
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by fax, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these
time frames, weekends, federal, state, County or City holidays shall be excluded.
20. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of
this Agreement, and shall indemnify City fully, including reasonable costs and
attorney's fees, for any injuries or damages to City in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this Agreement.
[Space left intentionally blank]
[Signatures on the following page]
A-2023-135
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney(
By:
Jose Montoya
Assistant City Attorney
,,RECO:;DED
FOR APPROVAL:
At'lµ
Nabil Saba, P.E.
Executive Director
Public Works Agency
CITY OF SANTA ANA
Kristine Ridge
City Manager
CONSULTANT:
Carlo Lebron
Senior Vice President
EXHIBIT A
CITY OF SANTA ANA
EXHIBIT I
SCOPE OF SERVICES
Contractor shall perform services as set forth below.
SCOPE OF SERVICE:
The City of Santa Ana is a full -service city with a population of over 335,000, encompassing 27 square
miles. Santa Ana is the second largest city in Orange County, the eleventh largest in the state, and the
57th largest in the nation. Incorporated in 1886, Santa Ana has long been the County's government
powerbase and serves as the County seat. With a total budget of $760.2 million, Santa Ana provides
public safety, quality -of -life programming, and general & utility services to its residents and business
community. The Sanitation Services Users Charge (Santation Fee/Sanitation Enterprise) as defined in
the Santa Ana Municipal Code Chapter 18 Article XII is 1 % of the total budget providing two services:
Environmental Sanitation/Weed Abatement and Roadway Cleaning/Street Sweeping. Sanitation
services are provided through a combination of city employees and private contractors. The approved
Sanitation Enterprise budget for Fiscal Year 2022-23 is $7.6 million.
The City maintains 400 miles of public right-of-way by removing hazardous material, vegetation,
industrial emissions, and litter. The Sanitation Enterprise support efforts to help ensure an equitable
approach to cleaning debris and pollutants along curbed streets, helping prevent contamination of local
waters and damaging aquatic life and marine ecosystems.
II. DESCRIPTION OF WORK:
Consultant shall prepare a cost of service study and make recommendations for implementing a
rate in compliance with California Proposition 218 requirements (anticipated implementation date
January 2024). The goals of the study are to:
A. Propose sanitation rates in accordance with California Constitution (Prop 218), and all applicable
laws, that are fair, objective and fiscally appropriate for Santa Ana, covering a ten (10) year study
period, including, but not limited to:
1. Ongoing operations and service enhancements;
2. A prudent reserve program for operating;
3. Capital replacement and emergencies; and
4. Identification ofcustomer life -line programs.
B. Evaluate existing department operations and budgets, identify the current level of service, and
estimate the future level of service.
C. Evaluate existing department operations and budgets with non -prevailing wage contractor
(street sweeping contract) requirement(s) and identify minimum service levels that will be
feasible given the recent enactment of prevailing wage (street sweeping contract).
D. Minimize rate impacts to customers to the greatest extent possible.
E. Identify existing and potential funding mechanisms to finance department operations and capital
Improvements.
COST OF SERVICE STUDY 18
aCITY OF SANTA ANA
Key issues that will impact the overall study are:
1. Continuous increase in cost due to current economic climate.
2. Santa Ana's historic effort to tackle the housing crisis is seeing an influx of
redevelopment projects, increasing the City's footprint.
III. CONTRACTOR REQUIREMENTS $ RESPONSIBILITIES
TASK 1 - SANITATION PROGRAM EVALUATION
A. GENERAL
The City sweeps approximately 54,000 curb miles; responds to over 15,000 service
requests for roadway cleaning annually, 2,000 environmental sanitation/weed abatement
violations, and more than 1,600 reports to obstructions in the public right-of-way.
B. CONTENT/TASKS
1. Consultant shall review and become familiar with the operation and all pertinent
historical performance and financial data. Consultant shall review the following at
minimum:
a. Surrounding municipalities to establish service level;
b. Current and recent budgets and Annual Comprehensice Financial Report (ACFR);
c. Background information for the operation including existing regulatory
requirements, and other contractual requirements and operations;
d. Historical revenues, operating expenses, reserve policies (i.e., working capital
and renewal and replacement), approved rates and charges, customer
information and number of units; and
e. Review other pertinent data as necessary.
2. Consultant shall prepare an "Existing Cost of Service Summary' technical
memorandum or executive summary of the existing financial condition of the sanitation
enterprises. This summary shall identify:
a. The cost of service gaps or discrepancies between the existing rate structure(s);
b. The projected maintenance, operations and capital spending plans; and
c. The effects of current financial/economic climate.
This summary will also identify the strategy the consultant intends to use to close any
cost of service gaps identified.
C. DELIVERABLES
Existing Cost of Service Summary
a. Digital Copy (PDF)
b. Printed Copies (5)
COST OF SERVICE STUDY 19
= CITY OF SANTA ANA
II. TASK 2 -COST OF SERVICE RATE MODEL & SCENARIO DEVELOPMENT
A. GENERAL
As part of the work required in preparing a comprehensive cost of service and rate study
report, the Consultant may develop various forecasting models, projections, and rate
adjustment scenarios for the City's consideration. The cost of service rate model and
scenario covers, but is not limited to, all expenses related to Sanitation Services, including
Environmental Sanitation, Weed Abatement, Roadway Cleaning, Street Sweeping, and any
other costs identified during the process.
B. CONTENT/TASKS
Consultant shall perform the following tasks:
1. Classify functional expenses to cost components: capacity (demand) costs (e.g.,
Environmental Sanitation, Weed Abatement, Roadway Cleaning, Street Sweeping),
commodity costs - related to Sanitation Services, customer costs and other direct
costs;
2. Classify operating, administrative, operations and maintenance (O&M) expenses,
collection/disposal cost, and reserve fund requirements;
3. For each rate scenario, assess the sensitivity of the projected results to changes in
certain key variables, including but not limited to, changes in units changes and
changes in the cost of the operation.
4. Propose changes to existing or creation of new sanitation fees and surcharges, as
are necessary and/or expedient to achieving the goals of the study.
5. The rate design shall continue to support current service level for all customer
classes, provide funding for capital replacement while ensuring the ability of the
sanitation enterprises to meet fixed and variable cost obligations.
C. DELIVERABLES
There are no deliverables for this section. Consultant shall meet and confer with City in
regards to the cost of service rate model development and various scenarios prior to
preparing report.
III. TASK 3 - COST OF SERVICE REPORT
A. GENERAL
Consultant shall prepare comprehensive cost of service reports which satisfies the City's
stated goals in Section II, "Description of Work' above.
At a minimum the reports shall be comprised of the following:
1. Executive Summary
2. Introduction/Background including discussions on
a. Purpose of study
b. Applicable laws and regulatory framework
c. Generally accepted rate setting standards
3. Revenue Requirements
COST OF SERVICE STUDY 20
CITY OF SANTA ANA
4. Cost allocation methodology
5. Recommendations
6. California Proposition 218 Compliant Notices
a. Prepare rate adjustment notices compliant with Proposition 218
requirements. Notices will be prepared in three languages, English,
Spanish and Vietnamese. Notices to be delivered electronically as
Microsoft Word document.
b. Pass -through adjustment formula and means of establishing pass through
adjustments shall be explicitly stated.
B. CONTENT/TASKS
Perform a fully allocated sanitation rate study tailored for Santa Ana, including the following:
1. A rate structure based on cost of service sufficient to meet the revenue requirements
of the sanitation enterprise;
2. Classify functional expenses to cost components: capacity (demand) costs (e.g.,
Environmental Sanitation, Weed Abatement, Roadway Cleaning, Street Sweeping),
commodity costs - related to Sanitation Services, customer costs and other direct
costs;
3. Classify operating, administrative, operations and maintenance (O&M) expenses,
collection/disposal cost, and reserve fund requirements;
4. A rate structure that considers and makes provisions for the following factors:
Current and future cost of providing sanitation services in accordance
with established and anticipated standards and regulations.
A recommended sanitation rate structure that is in compliance with
Proposition 218;
5. Provide a comparison of current sanitation rates to comparable surrounding
sanitation program;
6. The type and amount of reserves appropriate to the City's sanitation operations
taking into consideration reserves for cash flow, catastrophes, infrastructure
replacement (proprietary assets) and other appropriate purposes;
7. A comparison of customer groups and cost of service with neighboring
municipalities of comparable size, type of treatment, and level of service;
8. A review and analysis of current rate and fee structures. Consultant should
recommend changes if appropriate; and
9. Consultant shall assess the recommended rate structures and their impacts on the
ability to fund sanitation operations as well as their impact on the City's rate payers;
10. A review of elderly low-income and sanitation rate programs provided by other
agencies and propose appropriate elderly low-income sanitation rate for Santa Ana;
11. The benefits of any proposed rate modifications shall be weighed against the
financial impacts on the ratepayers. Consultant shall analyze the proposed rates for
customer impacts and develop alternative rates modeled to address financial
impacts on ratepayers. The analysis shall include:
COST OF SERVICE STUDY
21
CITY OF SANTA ANA
a. Preparation of typical bill comparisons for each proposed rate structure for
representative customer classes using the current rate schedules as a
baseline.
b. Compare customer class and proposed rate structures with neighboring
agencies of comparable service area.
C. DELIVERABLES
Consultant shall deliver at a minimum the following:
1. Final Cost of Service Reports
a. Digital Copy (PDF)
b. Printed and Bound Copies (15) of each
2. Proposition 218 Compliant Notice
a. Digital Copy (PDF and MS Word)
3. Pass -through adjustment calculator
a. Digital Copy (MS Excel or similar)
Consultant shall meet with the City to discuss the report's outcome and explain in detail the
full parameters and outcomes discussed in the report. In addition, the Consultant shall meet
with the City to review a draft copy of the report before submitting the final report.
IV. PUBLIC MEETINGS & PRESENTATIONS
Consultant shall participate, as requested by City, at both staff and public meetings. Consultant
shall expect to make presentations regarding the results of the cost of service study to City
executive staff, Mayor and Council and the general public. For purposes of this RFP, Consultant
shall be required to attend a minimum six (6) meetings in the range of two (2) — four (4) hours
in length in person.
V. KICKOFF MEETING
Consultant shall attend one (1) contract kick-off meeting at the City's Corporate Yard located
at 215 S. Center St., Santa Ana, CA 92703 at which City staff will share contact information,
safety and security protocols, and familiarize the Consultant with the City's sites and equipment.
VI. PROJECT MANAGEMENT & COORDINATION
Consultant shall not proceed with any work without the approval of the City's designated Project
Manager. Consultants shall invoice the City on a monthly basis for all work performed during
the period. Each invoice shall be accompanied by a summary of tasks performed, results, and
progress on long-term tasks (if any).
VII. MIDTERM REVIEW
The City intends to implement a five-year rate structure as determined appropriate by the
results of the cost of service study. Consultant shall perform a midterm review (either at Year
2 or 3 of implementation) of the adopted rate structure, revenues and expenditures, and make
recommendations/findings as to the need for any midterm rate adjustments to meet the City's
stated goals. The Consultant shall deliver an addendum report to the initial study presenting
COST OF SERVICE STUDY 22
(a CITY OF SANTA ANA
said recommendations. The Consultant will provide an updated Proposition 218 notice if
requested by the City.
VIII. VALUE-ADDED RELATED SERVICES
Consultant may propose additional related services that the City has not specifically identified
in this RFP to accomplish the stated goals of this RFP. Value-added related services will be
considered by the City and may or may not be incorporated in theAgreement.
IX. FEE SCHEDULE
Consultant shall submit a fee schedule in a separate file as described in Section VII.F.3 -
RESPONSE TO RFP — PROPOSAL CONTENTS.
Fee proposal shall be outlined as follows:
1. Fee for preparing Cost of Service Report (Items I — VI)
2. Fee for performing midterm review (Item VII)
3. Firm's standard hourly fee schedules
4. Optional: Fee for any proposed value-added services, if any (item VIII)
X. TERMINATION
The City reserves the right to terminate the contract, without penalty, for cause immediately or
without cause.
1. This agreement may be terminated without cause by City upon thirty (30) days written
notice delivered to the Contractor either personally or by mail. Upon termination, City shall
pay to Contractor that portion of compensation specified in the Agreement that is earned
and unpaid prior to the effective date of termination.
2. In addition to, or in lieu of, remedies provided in this Agreement or pursuant to law, City
shall have the right to withhold all or a portion of Contractor's compensation for contract
services if, in the judgment of the Projects Manager or designee, falls below appropriate
standards and/or Contractor fails to satisfactorily perform contract services.
XI. CONTRACTOR OPTION FOR TERMINATION
In the event of nonpayment of undisputed sums by the City, Contractor shall give the City a
minimum of thirty (30) working days to cure the alleged breach.
COST OF SERVICE STUDY 23
EXHIBIT B
To ensure that the City receives the services it requires at the agreed upon price, we propose to
offer our servic es for a fixed fee of $47,700. The fee includes the scope for all services
described in this proposal, in response to the Scope of Services requested, and will be billed
monthly on a percent complete basis.
Project Steps
Fee
Project Initiation
$
1,925
Revenue Sufficiency Analysis
$
8,825
Cost to Provide Services
$
8,725
Rate Structure Analysis
$10,050
Rate Benchmarking
$
2,475
Ordinance/Policy Review
$
6,200
Presentation of Results
$
9,500
Total $ 47,700
Midterm Update $18,600
Additionally, we have provided the cost for the midterm update. In the event that the City
requires any services not detailed in this proposal, work can be completed on an hourly basis
using the fees on the next page, or we can provide a separate, fixed fee proposal for those
additional services.
C
Hourly Rates
SCS ENGINEERS FEE SCHEDULE
(Effective: January 1, 2023 through December 31, 2023)
Labor Category
Rate
Principal/Business Unit Director........................................................................................
$255
ProjectDirector................................................................................................................
$240
SeniorProject Advisor......................................................................................................
$225
Senior Project Manager...................................................................................................
$205
ProjectManager II............................................................................................................
$185
ProjectManager I.............................................................................................................
$175
ProjectAdvisor..................................................................................................................
$165
Senior Project Professional II............................................................................................
$165
Senior Project Professional I............................................................................................
$155
SeniorDesigner................................................................................................................
$145
Project Professional 11.......................................................................................................
$140
Project Professional I........................................................................................................
$130
Designer..........................................................................................................................
$120
GISAnalyst.......................................................................................................................
$120
Staff Professional II...........................................................................................................
$117
StaffProfessional I............................................................................................................
$110
SeniorSuperintendent......................................................................................................
$135
AnalystIII..........................................................................................................................
$115
AnalystII...........................................................................................................................
$110
DataAnalyst....................................................................................................................
$105
AnalystI............................................................................................................................
$100
SeniorTechnician.............................................................................................................
$110
Associate Staff Professional.............................................................................................
$100
Drafter..................................................................................................................................
$95
Technical Associate............................................................
................................ $95
Technician..........................................................................................................................
$90
Secretarial/Clerical..............................................................................................................
$90
General Terms:
1. The hourly and reimbursable rates are effective through December 31, 2023. Work performed thereafter
is subject to a new Fee Schedule issued for the period beginning January 1, 2024.
2. The above rates include salary, overhead, administration, and profit. Other direct expenses, such as
analyses of air, water and soil samples, reproduction, travel, subsistence, subcontractors, computers,
and other reimbursable fees, are billed in accordance with the attached reimbursable fee schedule, or at
cost plus 15 percent for administration.
3. For special situations, such as expert court testimony, hourly rates for principals of the firm will be on an
individually -negotiated basis.
0
REQUEST FOR PROPOSALS NO. 23-029
FOR
SANITATION SERVICES USERS CHARGE
(SANITATION FEE/SANITATION ENTERPRISE)
COST OF SERVICE STUDY
CITY OF SANTA ANA
Nabil Saba
Executive Director
Public Works Agency
KEY RFP DATES: The schedule below is tentative and subject to change at the discretion of
City, with appropriate notice to prospective Proposers.
Issue Date: March 1, 2023
Virtual Mandatory Pre -Proposal Meeting: March 9, 2023 at 9:00 A.M.
Deadline for Questions: March 13, 2023 by 4:00 P.M.
Proposal Due Date: March 20, 2023 by 4:00 P.M.
Presentations/Interviews (if held) on or about March 27-30, 2023
COST OF SERVICE STUDY
(9)
CITY OF SANTA ANA
TABLE OF CONTENTS
I.
BACKGROUND...........................................................................................................................3
II.
MANDATORY PRE -PROPOSAL MEETING................................................................................3
III.
OVERVIEW OF PROJECT..........................................................................................................3
IV.
SCOPE OF SERVICES...............................................................................................................3
V.
TERM OF AGREEMENT.............................................................................................................4
VI.
MINIMUM QUALIFICATIONS......................................................................................................4
VII.
RESPONSE TO RFP..................................................................................................................4
VIII.
CERTIFICATIONS (ATTACHMENTS).........................................................................................7
IX.
REFERENCES............................................................................................................................8
X.
MINIMUM SCOPE AND LIMIT OF INSURANCE.........................................................................8
XI.
SELECTION PROCEDURES & CRITERIA...............................................................................
11
XII.
WITHDRAWALS........................................................................................................................11
XIII.
GENERAL TERMS AND CONDITIONS....................................................................................
12
XIV.
AWARD OF AGREEMENT........................................................................................................
16
XV.
IMPLEMENTATION...................................................................................................................
17
EXHIBITS
Exhibits provided herein for Proposers'reference only.
EXHIBIT I — SCOPE OF SERVICES
EXHIBIT 11— SAMPLE AGREEMENT
ATTACHMENTS
A REFERENCES
B NON -COLLUSION AFFIDAVIT
C NON -LOBBYING CERTIFICATION
D NON-DISCRIMINATION CERTIFICATION
E
COST OF SERVICE STUDY
(a CITY OF SANTA ANA
BACKGROUND
Incorporated in 1886, Santa Ana, a Charter City, established a Council -Manager form of
government in 1952. The City Council is composed of seven members; the Mayor elected at
large and six Council members elected by ward, who appoint the City Manager, City Attorney
and Clerk of the Council. The City of Santa Ana (City) is a full -service City with a diverse
population of approximately 335,000.
The City's eleven agencies provide all the traditional municipal services, as well as water utility,
library system, 20-acre Zoo, City Jail, Police Department, and contracts with the Orange County
Fire Authority for provision of fire services. The City employs 1,342 authorized full-time positions
and has an annual citywide budget is $760.2 million, including the General Fund budget of
$403.6 million.
The City of Santa Ana is located 10 miles inland from the Pacific Ocean, 33 miles southeast of
Los Angeles and 90 miles north of San Diego. The City, which is the county seat of Orange
County, encompasses an area of approximately 27 square miles and is the 11th largest by
population in California.
II. MANDATORY PRE -PROPOSAL MEETING
A mandatory virtual pre -proposal meeting will be held on the date and time specified on the
cover page of this RFP.
Failure to attend this meeting shall result in your firm being disqualified from proposing.
Meeting Link: https://meet.goto.com/794712045
The meeting will include a detailed discussion of the project and the services provided by the
Sanitation Services Users Charge. All questions shall be required to be submitted in written
form. After the pre -proposal meeting, City will respond to pre -proposal attendees by e-mail to
written questions or requests for clarifications.
III. OVERVIEW OF PROJECT
The City of Santa Ana is seeking a Consultant to perform a cost of service study for the City's
Sanitation Services Users Charge (Sanitation Fee/Sanitation Enterprise) in compliance with
California Proposition 218 requirements . The City intends to enter into an agreement with a
single firm to provide the described services. A detailed Scope of Work is included in EXHIBIT I:
SCOPE OF SERVICES.
IV. SCOPE OF SERVICES
SEE EXHIBIT I — SCOPE OF SERVICES
The Contractor shall be an independent contractor capable of providing experienced,
knowledgeable and professional staff. The Contractor shall be responsive and maintain
excellent working relationships with city residents, businesses, government officials and City
staff. The Contractor shall provide adequate staffing levels at all times and adhere to established
schedules. The Contractor shall be knowledgeable of and comply with federal, state and local
regulations, including but not limited to California Constitution Proposition 218.
COST OF SERVICE STUDY
.a CITY OF SANTA ANA
Usage is not guaranteed. Execution of an agreement between the City and successful firm(s)
and/or individual(s) does not guarantee work throughout the duration of the contract period,
Numerous factors will be evaluated by the City in its delivery of project and assignments,
including technical expertise required.
V. TERM OF AGREEMENT
The anticipated term of the agreement is for an initial period of three (3) years. The City may, at
its discretion, extend the agreement with the same or more limited scope of required services for
one (1), two (2) year renewal, upon mutual agreement contingent upon City Council approval, or
City Manager or City Attorney authorization, as appropriate unless the City notifies Contractor in
writing at least thirty (30) days before the end of the initial term or any extended term, of its intent
to terminate the Agreement at the conclusion of the initial term or any extension. Time is of the
essence in the performance of services under this Agreement. The total term of the awarded
agreement shall not exceed five (5) years. The contract term is anticipated to commence after
City Council award or other required approval of this contract and upon receipt and approval of
all required bonds and insurance documents.
VI. MINIMUM QUALIFICATIONS
Proposer's (Firm's) proposed KEY Personnel must have a minimum of five years of experience
providing cost of service studies services to similar public agencies.
VII. RESPONSE TO RFP
A. SUBMITTAL INSTRUCTIONS
It is the responsibility of the Proposer to ensure that any proposals submitted have been
uploaded to PlanetBids prior to the RFP due date and time. Proposals, including all required
sections and forms, shall be submitted electronically via the City's Bid Management System,
PlanetBids. No other form of submittal will be accepted.
PlanetBids will not accept late proposals and no exceptions shall be made. Proposers will
receive an a -bid confirmation number with a time stamp from PlanetBids indicating that their
proposal was submitted successfully. The City will only receive and consider those proposals
that were transmitted successfully. Submit proposal online at:
http://www.planetbids.com/l)ortal/portal.cfm?Companv]D=20137.
Proposer shall be solely responsible for informing itself with respect to the proper utilization
of the bid management system, for ensuring the capability of their computer system to upload
the required documents, and for the stability of their internet service. Failure of the Proposer
to successfully submit an electronic proposal shall be at the Proposer's sole risk and no relief
will be given for late and/or improperly submitted proposals. Proposers experiencing any
technical difficulties with the bid submission process may contact PlanetBids at (818) 992-
1771. Questions of an operational nature may be directed to the City's assigned Buyer.
Neither the City, nor PlanetBids, makes any guarantee as to the timely availability of
assistance, or assurance that any given problem will be resolved by the bid submission
deadline.
Proposals shall NOT be sent via telegraphic, electronic, or facsimile means.
All notifications, updates and addenda will be posted online on PlanetBids at
https://www.planetbids.com/portal/portal.cfm?CompanvlD=20137. Proposers shall be
COST OF SERVICE STUDY
(a CITY OF SANTA ANA
responsible for monitoring the site to obtain information regarding this solicitation. Failure to
respond to required updates may result in a determination of a nonresponsive proposal.
B. COMMUNICATION / CONTACT WITH CITY STAFF
Unless otherwise authorized herein, Proposers who are considering submitting a proposal in
response to this RFP, or who submit a proposal in response to this RFP, are only to
communicate with the assigned Project Coordinator(s), and no other City staff about this RFP
from the date this RFP is issued until a contract is awarded. The City will provide all official
communication concerning this RFP in writing via the City's Bid Management System,
PlanetBids.
The City will not be responsible for or bound by any oral communication or any other
information or contact that occurs outside the official communication process specified
herein, unless confirmed in writing by the designated Project Manager(s).
C. REQUEST FOR INFORMATION OR CLARIFICATION / QUESTIONS
Questions regarding this RFP shall be submitted via PlanetBids. Responses to all questions
will be posted on PlanetBids no later than the date and time shown at the schedule of key
RFP dates on the cover page of this RFP. All prospective Proposers are advised to visit
PlanetBids on a regular basis as responses may be posted earlier than the date above (if
applicable). No verbal requests or responses will be accepted. Significant interpretations or
clarifications will be addressed via addenda to this RFP.
Requests submitted for City's consideration of proposed terms and conditions, including
modifications to the City's RFP and/or Contract terms and conditions must be submitted by
the deadline for questions. Such requests should include an attachment in Word or PDF
format on formal company letterhead that shows the requested modifications.
Significant interpretations or clarifications and responses to questions received by the
deadline will be addressed via addenda to this RFP, which will be released and posted on
PlanetBids under the "Addenda/Emails" tab.
General process questions may be directed to the following:
Eva Pierce, Buyer
Email: EPierce@santa-ana.org
D. ADDENDA
Any changes in RFP from the date of release to date of submittal will result in an addendum
or amendment. Notification of such addendum or amendment shall be posted on City's
PlanetBids system, https://www.planetbids.com/portal/portal.cfm?CompanylD=20137.
Proposers shall be responsible for monitoring the site to obtain information regarding this
solicitation.
E. UNDERSTANDING PROPOSAL
It is the responsibility of each Proposerto inquire about any criteria, condition, term, provision,
or requirement of the RFP that the Proposer does not understand. Responses to inquiries,
if they significantly change or clarify the RFP requirements or any aspect of the procurement
process, will be forwarded by addenda to all Proposers. The City will not be bound by any
oral responses to inquiries. By submitting proposals, Proposers assert that they have fully
read the RFP and any addenda issued by the City, the proposed Contract and any other
Contract Documents, and affirm that the terms and conditions stated therein are fully
COST OF SERVICE STUDY 5
CITY OF SANTA ANA
understood and are acceptable to the Proposer. Each Proposer accepts the terms and
conditions of the Contract Documents and indicates their ability and willingness to perform
the requested services under such terms and conditions. Any exceptions to the terms and
conditions set forth in the Contract Document shall be submitted to the City by the deadline
to submit requests for information or clarification/questions set forth herein.
F. PROPOSAL CONTENTS
Proposals are to be prepared in such a way as to provide a straightforward, concise
delineation of capabilities to satisfy the requirements of this RFP. Colored displays,
promotional materials, photographs etc., are not necessary or desired. Emphasis should be
concentrated on conformance to RFP instructions, responsiveness to the RFP requirements,
and on completeness and clarity of content. Digital dividers and clear organization of content
and material are encouraged.
Proposals must include a Table of Contents and be limited to a maximum of 10 pages
(excluding section dividers and exhibits). The page limitation includes all appendices,
attachments, and supplemental information.
All electronic proposal submissions shall be on 8-1/2" x 11"white paper (PDF Format).
1. Narrative Proposal must include the following:
Cover Letter
Proposals shall include a letter signed by a principal or authorized representative who
can make legally binding commitments for the entity. Include type of business entity.
Cover Letter shall not exceed three (3) pages. Cover letter must stipulate the
proposed pricing will be valid for a period of a minimum of 24 months (no price
increase will be considered in the first 24 months) subject to annual CPI increases,
indicate the address and telephone number of the Contractor's office nearest to Santa
Ana, California, and the office from which the contract will be managed.
Cover letter must be addressed to the following City Project Manager:
Elizabeth Rubio, Projects Manager
City of Santa Ana — Public Works Agency
220 S. Daisy Avenue
Santa Ana, CA 92703
ii. Scope of Services Provided and Schedule
Proposals shall include a description of proposed services to be provided and how
they meet the needs of the City; including details of the work phases to be completed,
the tasks to be accomplished and the deliverables to be provided. Provide a schedule
based on and incorporating the Scope of Services outlined in EXHIBIT I. Include a
written statement which provides proposer's current workload and how this project will
be accommodated.
Agreement Statement
Proposal shall include a statement outlining your concurrence or concerns with any
and all provisions as contained in EXHIBIT II — Sample Agreement of this RFP (if
any).
iv. Firm and Team Experience
COST OF SERVICE STUDY
CITY OF SANTA ANA
Proposal shall include a profile of the firm's experience. Include resumes of project
team/sub-contractors that outline their technical and design experience. At a
minimum, this should include the project manager/principal agent, associates in
charge when project manager/principal agent is unavailable, key personnel, firm
size, and an organization chart identifying only those who will perform work for the
proposed project and the percentage of each individual's time devoted to this
project. The project manager/principal agent shall be the primary contact person
to represent your firm.
V. Understanding Need
Proposal shall include an outline which demonstrates the firm's understanding of
the scope of work. This outline should include anticipated approach, tasks
necessary for successful completion, and suggestions or special concerns that
the City should be made aware of.
vi. Relevant Project Relevant Project Experience
Proposal shall include a list of relevant projects which your firm or personnel have
completed within the last five (5) years, including significant work with public
agencies. Project information should include project description, year completed,
client name, along with a person to contact and their telephone number.
vii. References
Proposal shall include references for three (3) public entities for which Proposer has
performed similar work within the past five (5) years.
2. Fee Proposal
Provide a fee schedule/pricing information for the project, which shall include the firm's
standard hourly fee schedule, and/or a project fee schedule required to perform the
services as set forth in EXHIBIT I.
The fee proposal shall be submitted concurrently with the technical proposal, but
uploaded as a separate file and clearly labeled as "Fee Proposal".
The City will primarily evaluate proposals based on qualifications. The City reserves the
right to negotiate a contract price with the most qualified/highest-rated firm based on
available funding.
Vill. CERTIFICATIONS (ATTACHMENTS)
In addition to the SOQ, Narrative/Technical Proposal, and Cost Proposal, the following forms,
included in this RFP, shall be signed and included as part of the proposal submittal package:
• Attachment A: References
Attachment B: Non -Collusion Affidavit
Attachment C: Non -Lobbying Certification
• Attachment D: Non -Discrimination Certification
The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed
as nonresponsive and will be rejected. The City reserves the right to reject any or all proposals
submitted and no representation is made hereby that any commitment will be awarded pursuant
to this RFP or otherwise.
COST OF SERVICE STUDY
r�.
CITY OF SANTA ANA
any
IX.
PLEASE NOTE. City will not be waive notarization requirement when applicable on
of the required attachments.
Contractor shall provide three (3) references from other similar public agencies for which services
similar to those specified in this RFP have been performed, including contact names and
telephone numbers. Use ATTACHMENT A — References. The respondent grants permission
for the City to contact any individuals listed as references.
City may disqualify a Proposer if:
• References fail to substantiate Proposer's description of services and
deliverables provided; or
• References fail to support that Proposer has a continuing pattern of providing
capable, productive, and skilled personnel, or
• City is unable to reach the point of contact with reasonable effort. It is the
Proposer's responsibility to inform the point of contact(s) of normal City
working hours.
X. MINIMUM SCOPE AND LIMIT OF INSURANCE
The selected Proposer shall provide the required evidence of insurance coverage as set forth in
the standard agreement within ten (10) business days after receipt of Notice of Intent to Award.
Contractor must maintain, for the duration of its contract, insurance coverages as required by
the City.
Additionally, Contractor shall provide the following insurance coverage:
Coverage shall be at least as broad as:
• Commercial General Liability (CGL): Insurance Services Office Form CG 00 01
covering CGL on an "occurrence" basis, including products and completed operations,
property damage, bodily injury and personal & advertising injury with limits no less than
$1,000,000 per occurrence. If a general aggregate limit applies, either the general
aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or
the general aggregate limit shall be twice the required occurrence limit.
• Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if
Contractor has no owned autos, hired, (Code 8) and non -owned autos (Code 9), with
limit no less than $1,000,000 per accident for bodily injury and property damage.
• Workers' Compensation: as required by the State of California, with Statutory Limits,
and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for
bodily injury or disease.
• Professional Liability (Errors and Omissions) Insurance appropriates to the
Con sultant'sprofession, with limit no less than $1,000,000 per occurrence or
claim, $2,000,000aggregate.
If the Contractor maintains broader coverage and/or higher limits than the minimums shown
above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits
maintained by the contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the Entity.
COST OF SERVICE STUDY
may,
all�l CITY OF SANTA ANA
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional
insureds on the CGL policy with respect to liability arising out of work or operations performed
by or on behalf of the Contractor including materials, parts, or equipment furnished in
connection with such work or operations. General liability coverage can be provided in the form
of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11
85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38;
and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Contractor's insurance coverage shall be primary
coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials,
employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its
officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and
shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except
with notice to the Entity.
Waiver of Subrogation
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said
Contractor may acquire against the Entity by virtue of the payment of any loss under such
insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this
waiver of subrogation, but this provision applies regardless of whether or not the Entity has
received a waiver of subrogation endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the Entity. The Entity may require
the Contractor to purchase coverage with a lower retention or provide proof of ability to pay
losses and related investigations, claim administration, and defense expenses within the
retention. The policy language shall provide, or be endorsed to provide, that the self -insured
retention may be satisfied by either the named insured or Entity.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the Entity.
Claims Made Policies (note — should be applicable only to professional liability, see below)
If any of the required policies provide claims -made coverage:
1. The Retroactive Date must be shown, and must be before the date of the contract or the
beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least
five (5) years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made
policy form with a Retroactive Date prior to the contract effective date, the Contractor
COST OF SERVICE STUDY
CITY OF SANTA ANA
must purchase "extended reporting" coverage for a minimum of five (5) years after
completion of work.
Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required
amendatory endorsements (or copies of the applicable policy language effecting coverage
required by this clause) and a copy of the Declarations and Endorsement Page of the CGL
policy listing all policy endorsements to Entity before work begins. However, failure to obtain the
required documents prior to the work beginning shall not waive the Contractor's obligation to
provide them. The Entity reserves the right to require complete, certified copies of all required
insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting
all the requirements stated herein, and Contractor shall ensure that Entity is an
additional insured on insurance required from subcontractors.
Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of
the risk, prior experience, insurer, coverage, or other special circumstances.
COST OF SERVICE STUDY 10
CITY OF SANTA ANA
XI. SELECTION PROCEDURES & CRITERIA
A. The City will establish a proposal review committee. The review committee will evaluate proposals
based on the response to the RFP, which includes adherence to outlined directions and format,
and the City evaluation criteria set forth below. A final score will be calculated for each submitted
proposal and used to rank the proposers.
B. Proposers will be ranked by the review committee based on the following criteria:
CATEGORY
POINTS
Firm/Team Experience
• Firm experience (Quantity/Similar Project/Scope of Service)
• Technical & design experience
15
• Company's structure demonstrates sufficient depth, capacity for its
resent and additional workload
Understanding of Need
• Outline demonstrating the firm's understanding of the scope of work
• Anticipated approach
30
• Task necessary for scuccessful competition
Relevant Project Experience
• Relevant projects firm/personnel completed within the last five (5) years
15
Schedule
• Detailed Schedule based on the Scope of Service
15
Fee
• Cost of Project
20
References
• References that are similar in size and project scope to the City.
5
• Customer service approach and reputation with municipal agencies
TOTAL POSSIBLE SCORE
100
The committee may interview the top ranking proposers. The City will recommend award of the
agreement to the proposers who will provide the best quality and value to the City. City reserves
the right to begin negotiations and enter into an agreement without interview or further
discussions.
XII. WITHDRAWALS
Proposers are responsible for verifying all prices and information before submitting a proposal.
Prior to the proposal due date, the Proposer or Proposer's representative may withdraw the
proposal by providing written notice of the proposal withdrawal to the City Contact/Project
Manager. Verbal or telephonic withdrawals are not permissible.
COST OF SERVICE STUDY 11
CITY OF SANTA ANA
XIII. GENERAL TERMS AND CONDITIONS
A. AMERICANS WITH DISABILITIES ACT
The awarded Contractor hereby certifies that it will comply, as applicable, with the Americans
with Disabilities Act of 1990 ("ADA"), 42 USC §§ 12101 et seq., and its implementing
regulations, including Subtitle A, Title II of the ADA. Contractor will not discriminate against
persons with disabilities nor against persons due to their relationship to or association with a
person with a disability. Any contract entered into by the awarded Contractor (or any
subcontract thereof), relating to this RFP, shall be subject to the provisions of this paragraph.
B. CITY BUSINESS LICENSE
The selected proposer shall be required to obtain a City of Santa Ana Business license within
thirty (30) days of selection and must provide a copy to the City projects manager or designee
prior to commencing any work in Santa Ana.
C. CITY RIGHT TO REJECT
The City reserves the right to reject any or all proposals submitted and no representation is
made hereby that any agreement will be awarded pursuant to this RFP or otherwise. The
City reserves the right to accept or reject the combined or separate components of this
proposal in part or in its entirety or to waive any minor inconsistency, informality or technical
defect in the proposal.
D. CONFLICT OF INTEREST
Contractor shall exercise reasonable care and diligence to prevent any actions or conditions
that could result in a conflict with the best interests of the City. This obligation shall apply to
the Contractor; the Contractor's employees, agents, and Subcontractors associated with
accomplishing work and services hereunder. The Contractor's efforts shall include, but not
be limited to, establishing precautions to prevent its employees, agents, and Subcontractors
from providing or offering gifts, entertainment, payments, loans or other considerations which
could be deemed to influence or appear to influence City staff or elected officers from acting
in the best interests of the City.
Each Proposer must disclose any existing or potential conflict of interest relative to the
performance of the contractual services resulting from this RFP. Any such relationship that
might be perceived or represented as a conflict should be disclosed. The City reserves the
right to disqualify any Proposer on the grounds of actual or apparent conflict of interest.
No person, firm, or subsidiary thereof who has been awarded this Contract may be awarded
a Contract for the provision of services, the delivery of supplies, or the provision of any other
related action which is required, suggested, or otherwise deemed appropriate as an end
product of this Contract. Therefore, Contractor is precluded from contracting for any work
recommended as a result of this Contract.
E. CONTRACTOR'S EXPENSE
Pre -Contractual Expenses: The City is not liable for any costs incurred by Proposers prior to
entering into a formal contract. Costs of developing a response to this RFP, are entirely the
responsibility of the Proposer, and shall not be reimbursed in any manner by the City. Pre -
contractual expenses are not to be included in the cost proposal. Pre -contractual expenses
include, but are not limited to, preparation of the proposal, submission of the proposal and
additional information, attendance at pre -proposal conference, negotiating any matter related
COST OF SERVICE STUDY 12
(a CITY OF SANTA ANA
to this RFP with City, and/or any other expenses incurred by the Proposer prior to the date
of award and execution, if any, of the contract.
Other Expenses: The Contractor will be responsible for all costs related to photo copying,
telephone communications, fax communications, and parking while on City sites during the
performance of work and services under this Contract.
F. CONTRACTOR'S PROJECT MANAGER/KEY PERSONNEL
Except as formally approved by the City, the key personnel identified in Contractor's proposal
shall be the individuals who will actually complete the work. Changes in staffing must be
reported in writing and approved by the City. The City shall have the right to require the
removal and replacement of the Contractor's Project Manager and key personnel under the
awarded contract. The City shall notify the Contractor in writing of such action. The City is
not required to provide any reason, rationale, or additional factual information if it elects to
request any specific key personnel be removed from performing services under the awarded
contract. The City shall review and approve the appointment of the replacement for the
Contractor's personnel. Said approval shall not be unreasonably withheld.
Standards of Conduct: Contractor's personnel shall be courteous and maintain good working
relationships with all stakeholders, state or outside agencies, other team members and staff
within the City.
G. COST PROPOSAL
The awarded Contractor agrees to provide the purchased services at the costs, rates, and
fees as set forth in their Fee Schedule in response to this RFP. No other costs, rates or fees
shall be payable to the awarded Subcontractor for implementation of their proposal.
H. DATA RETENTION
Contractor shall be responsible for retaining data, records, and documentation for the
preparation of required items. These materials shall be made available to and as requested
by City.
All materials, documents, data or information obtained from the City Data files or any City
medium furnished to Contractor in the performance of an awarded contract will at all times
remain the property of the City. Such data or information may not be used or copied for direct
or indirect use by Contractor after completion or termination of this Contract without the
express written consent of the City. All materials, documents, data or information, including
copies, must be returned to the City at the end of the contract.
All data, documents and other products used, developed, or produced during response
preparation of the RFP will become property of the City. All responses to the RFP shall
become property of the City. Proposer information identified as proprietary shall be
maintained confidential, to the extent allowed under the California Public Records Act.
I. DRUG -FREE WORKPLACE
The awarded Contractor certifies compliance with Government Code Section 8355 in matters
relating to providing a drug -free workplace. Failure to comply with these requirements may
result in suspension of payments under the Contract or termination of the contract or both,
and the Contractor may be ineligible for award of any future City contracts.
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J. EXAMINATION
Proposer represents that it has thoroughly examined and become familiar with the services
and responsibilities required this RFP and that it is capable of effectively and efficiently
performing quality work to achieve the City's objectives. Any attachments referenced herein
or any interpretations, clarifications or amendments subsequently posted in relation to this
RFP are fully incorporated.
Any irregularities or lack of clarity in the RFP should be brought to the designated City
Contact/Project Manager's attention as soon as possible so that corrective addenda may be
furnished to prospective Proposers.
Proposals which appear unrealistic in the terms of technical commitments, lack of technical
competence, or are indicative of failure to comprehend the complexity and risk of this
contract, may be rejected.
K. EXECUTION OF AGREEMENT
Upon successful negotiations, the City and the selected Proposer will enter into an
Agreement similar to that as shown in EXHIBIT II — Sample Agreement of this RFP. If a
Proposer is unwilling or unable to execute an Agreement within thirty (30) days after being
notified of selection under this RFP, the City reserves the right to disqualify them without any
further obligation
FISCAL NONFUNDING CLAUSE
In the event sufficient budgeted funds are not available for a new fiscal period, the City shall
retain the right to notify the provider of such occurrence in writing at least thirty (30) days
before the end of the current fiscal period and terminate the contract on the last day of the
current fiscal period without penalty or expense to the City.
M. INDEPENDENT CONTRACTOR
Contractor is considered an independent Contractor and neither Contractor, its employees,
nor anyone working under Contractor will be considered an agent or an employee of City.
Neither Contractor, its employees, nor anyone working under Contractor, will qualify for
workers' compensation or other fringe benefits of any kind through City.
N. JOINT OFFERS/SUBCONSULTANTS
Where two or more Proposers desire to submit a single Proposal in response to this RFP,
they should do so on a prime sub -consultant basis. The City intends to contract with a single
firm and not with multiple firms doing business as a joint venture. Should the use of sub -
consultants be offered, the Proposer shall provide the same assurances of competence for
the sub -consultant plus the demonstrated ability to manage and supervise the subcontracted
work. Sub -consultants shall not be allowed to further subcontract with others for work under
the Agreement. The provisions of the Agreement shall apply to all sub -consultants in the
same manner as the Proposer.
The City reserves the right to reject, replace and approve any and all Subcontractors. All
Subcontractor(s) shall be identified in the response to the RFP and the City reserves the right
to reject any proposed Subcontractor(s). Subcontractors shall be the responsibility of the
prime Contractor and the City shall assume no liability of such Subcontractors.
O. LITIGATION STATUS
Each Proposer must include in its proposal a complete disclosure of any alleged significant
prior or ongoing contract failures, any civil or criminal litigation or investigation pending which
involves the Proposer or in which the Proposer has been judged guilty or liable. Failure to
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CITY OF SANTA ANA
comply with the terms of this provision will disqualify any proposal. The City reserves the
right to reject any proposal based upon the Proposer's prior history with the City or with any
other party, which documents, without limitation, unsatisfactory performance, adversarial or
contentious demeanor, significant failure(s) to meet contract milestones or other contractual
failures.
P. NEGOTIATIONS
The City reserves the right to negotiate final contract terms with any Proposer selected. The
contract between the parties will consist of the RFP together with any modifications thereto,
and the awarded Contractor's proposal, together with any modifications and clarifications
thereto that are submitted at the request of the City during the evaluation and negotiation
process. In the event of any conflict or contradiction between or among these documents,
the documents shall control in the following order of precedence: the final executed contract,
the RFP, any modifications and clarifications to the awarded Contractor's proposal, and the
awarded Contractor's proposal. Specific exceptions to this general rule may be noted in the
final executed contract.
Negotiations shall be confidential and not subject to disclosure to competing Contractors
unless and until an agreement is reached. If contract negotiations cannot be concluded
successfully, the City reserves the right to negotiate a contract with another Contractor or
withdraw the RFP.
Q. NON -PAYMENTS
Note that payments will NOT be made for any unsatisfactory work until corrected. In the event
of nonpayment of undisputed sums by the City, Contractor shall give the City thirty (30)
working days to cure the alleged breach.
R. OWNERSHIP OF DOCUMENTS
The City has permanent ownership of all directly connected and derivative materials produced
under this contract by the Contractor. All documents, reports and other incidental or derivative
work or materials furnished hereunder shall become and remains the sole property of the City
and may be used by the City as it may require without additional cost to the City. Contractor
shall provide the City copies of documents upon its request at anytime. None of the documents,
reports and other incidental or derivative work or furnished materials shall be used by the
Contractor without the express written consent of the City.
S. PARKING
The City will not provide free parking and/or reimbursement for the cost of parking while
providing services and conducting business with the City.
T. PROFESSIONAL STANDARDS
Contractor staff shall be courteous to the public and City staff utilizing facilities where
Contractor is performing work, but shall be responsive only to the requests of the City's
Project Manager or designee. Contractor staff shall direct all inquiries to Project Manager or
designee.
Contractor acknowledges that City locations consist of public -use facilities and recognizes
the obligation to ensure Contractor personnel and agents maintain the highest level of
professional standards in attire, decorum, and interaction with the public and City personnel.
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CITY OF SANTA ANA
U. PROJECT MANAGER
The selected Proposer will assume responsibility for all services in its proposal. The selected
Proposer shall identify a sole point of contact, Project Manager, with the greatest
knowledge in regard to the required service operations and contractual matters, including
payment of any and all charges resulting from the Agreement.
V. PROPOSAL VALIDITY
Services, pricing, and warranties indicated in a Proposer's Proposal must be valid for a period
of 180 days at minimum after the submission of the Proposal.
W. PUBLIC AGENCIES
Other public agencies, as defined by California Government Code Section 6500, may choose
to use the terms of this Contract, subject to Contractor's acceptance. The City is not liable or
responsible for any obligations related to a subsequent contract between Contractor and
another public agency.
X. PUBLIC RECORDS
Proposals will become public record after the award of a contract unless the proposal or
specific parts of the proposal can be shown to be exempt by law. Each Proposer may clearly
label all or part of a proposal as "CONFIDENTIAL" provided that the Proposer thereby agrees
to indemnify and defend the City for honoring such a designation. The failure to so label any
information that is released by the City shall constitute a complete waiver of any and all claims
for damages caused by any release of the information. Proposer information identified as
proprietary shall be maintained confidential, to the extent allowed under the California Public
Records Act.
Y. SUBCONTRACTORS
Proposals in response to this RFP must identify any Subcontractors, and outline the
contractual relationship between the Awarded Subcontractor and each Subcontractor. An
official of each proposed Subcontractor must sign, and include as part of the proposal
submitted by the Prime Contractor, a statement to the effect that the Subcontractor has read
and will agree to abide by the awarded Contractor's obligations. Any Subcontractor proposed
after award of contract must be approved by the City before commencement of work.
The City will look solely to the awarded Contractor for the performance of all contractual
obligations which may result from an award based on this RFP, and the awarded Contractor
shall not be relieved for the non-performance of any or all Subcontractors.
XIV. AWARD OF AGREEMENT
Selected Contractor(s) will be notified in writing. Any award is contingent upon the successful
negotiation of final contract terms.
A standard agreement is included as EXHIBIT 11 - Sample Agreement of this RFP. "Proposer'
will hereinafter be referred to as "Consultant" or "Contractor' in standard agreement. The term of
the agreement will begin after the agreement is fully executed, and all required bonds, insurance
documents and contents of the payment information packet have been received and approved.
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XV. IMPLEMENTATION
CITY OF SANTA ANA
A. KICK-OFF MEETINGS
A kick-off meeting will be held after award of contract. Consultant and its team will meet
with City of Santa Ana staff to conduct introductions, discuss scope of services, and
implementation process.
B. NOTICE TO PROCEED
Following the kick-off meeting, a formal Notice to Proceed (NTP) may be issued after the
agreement is fully executed, and all insurance documents and contents of the Payment
Information Packet have been received and approved.
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CITY OF SANTA ANA
EXHIBIT I
SCOPE OF SERVICES
Contractor shall perform services as set forth below.
SCOPE OF SERVICE:
The City of Santa Ana is a full -service city with a population of over 335,000, encompassing 27 square
miles. Santa Ana is the second largest city in Orange County, the eleventh largest in the state, and the
57th largest in the nation. Incorporated in 1886, Santa Ana has long been the County's government
powerbase and serves as the County seat. With a total budget of $760.2 million, Santa Ana provides
public safety, quality -of -life programming, and general & utility services to its residents and business
community. The Sanitation Services Users Charge (Santation Fee/Sanitation Enterprise) as defined in
the Santa Ana Municipal Code Chapter 18 Article XII is 1 % of the total budget providing two services:
Environmental Sanitation/Weed Abatement and Roadway Cleaning/Street Sweeping. Sanitation
services are provided through a combination of city employees and private contractors. The approved
Sanitation Enterprise budget for Fiscal Year 2022-23 is $7.6 million.
The City maintains 400 miles of public right-of-way by removing hazardous material, vegetation,
industrial emissions, and litter. The Sanitation Enterprise support efforts to help ensure an equitable
approach to cleaning debris and pollutants along curbed streets, helping prevent contamination of local
waters and damaging aquatic life and marine ecosystems.
II. DESCRIPTION OF WORK:
Consultant shall prepare a cost of service study and make recommendations for implementing a
rate in compliance with California Proposition 218 requirements (anticipated implementation date
January 2024). The goals of the study are to:
A. Propose sanitation rates in accordance with California Constitution (Prop 218), and all applicable
laws, that are fair, objective and fiscally appropriate for Santa Ana, covering a ten (10) year study
period, including, but not limited to:
1. Ongoing operations and service enhancements;
2. A prudent reserve program for operating;
3. Capital replacement and emergencies; and
4. Identification ofcustomer life -line programs.
B. Evaluate existing department operations and budgets, identify the current level of service, and
estimate the future level of service.
C. Evaluate existing department operations and budgets with non -prevailing wage contractor
(street sweeping contract) requirement(s) and identify minimum service levels that will be
feasible given the recent enactment of prevailing wage (street sweeping contract).
D. Minimize rate impacts to customers to the greatest extent possible.
E. Identify existing and potential funding mechanisms to finance department operations and capital
Improvements.
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Key issues that will impact the overall study are:
1. Continuous increase in cost due to current economic climate.
2. Santa Ana's historic effort to tackle the housing crisis is seeing an influx of
redevelopment projects, increasing the City's footprint.
III. CONTRACTOR REQUIREMENTS & RESPONSIBILITIES
TASK 1 - SANITATION PROGRAM EVALUATION
A. GENERAL
The City sweeps approximately 54,000 curb miles; responds to over 15,000 service
requests for roadway cleaning annually, 2,000 environmental sanitation/weed abatement
violations, and more than 1,600 reports to obstructions in the public right-of-way.
B. CONTENT/TASKS
1. Consultant shall review and become familiar with the operation and all pertinent
historical performance and financial data. Consultant shall review the following at
minimum:
a. Surrounding municipalities to establish service level;
b. Current and recent budgets and Annual Comprehensice Financial Report (ACFR);
c. Background information for the operation including existing regulatory
requirements, and other contractual requirements and operations;
d. Historical revenues, operating expenses, reserve policies (i.e., working capital
and renewal and replacement), approved rates and charges, customer
information and number of units; and
e. Review other pertinent data as necessary.
2. Consultant shall prepare an "Existing Cost of Service Summary" technical
memorandum or executive summary of the existing financial condition of the sanitation
enterprises. This summary shall identify:
a. The cost of service gaps or discrepancies between the existing rate structure(s);
b. The projected maintenance, operations and capital spending plans; and
c. The effects of current financial/economic climate.
This summary will also identify the strategy the consultant intends to use to close any
cost of service gaps identified.
C. DELIVERABLES
Existing Cost of Service Summary
a. Digital Copy (PDF)
b. Printed Copies (5)
COST OF SERVICE STUDY 19
CITY OF SANTA ANA
TASK 2 - COST OF SERVICE RATE MODEL & SCENARIO DEVELOPMENT
A. GENERAL
As part of the work required in preparing a comprehensive cost of service and rate study
report, the Consultant may develop various forecasting models, projections, and rate
adjustment scenarios for the City's consideration.
B. CONTENT/TASKS
Consultant shall perform the following tasks:
1. Classify functional expenses to cost components: capacity (demand) costs,
commodity costs, customer costs and other direct costs;
2. Classify operating, administrative, operations and maintenance (O&M) expenses,
power costs, distribution systems and reserve fund requirements;
3. For each rate scenario, assess the sensitivity of the projected results to changes in
certain key variables, including but not limited to, changes in units changes and
changes in the cost of the operation.
4. Propose changes to existing or creation of new sanitation fees and surcharges, as
are necessary and/or expedient to achieving the goals of the study.
5. The rate design shall continue to support current service level for all customer
classes, provide funding for capital replacement while ensuring the ability of the
sanitation enterprises to meet fixed and variable cost obligations.
C. DELIVERABLES
There are no deliverables for this section. Consultant shall meet and confer with City in
regards to the cost of service rate model development and various scenarios prior to
preparing report.
III. TASK 3 - COST OF SERVICE REPORT
A. GENERAL
Consultant shall prepare comprehensive cost of service reports which satisfies the City's
stated goals in Section II, "Description of Work" above.
At a minimum the reports shall be comprised of the following:
1. Executive Summary
2. Introduction/Background including discussions on
a. Purpose of study
b. Applicable laws and regulatory framework
c. Generally accepted rate setting standards
3. Revenue Requirements
4. Cost allocation methodology
5. Recommendations
6. California Proposition 218 Compliant Notices
a. Prepare rate adjustment notices compliant with Proposition 218
requirements. Notices will be prepared in three languages, English,
COST OF SERVICE STUDY 20
CITY OF SANTA ANA
Spanish and Vietnamese. Notices to be delivered electronically as
Microsoft Word document.
b. Pass -through adjustment formula and means of establishing pass through
adjustments shall be explicitly stated.
B. CONTENT/TASKS
Perform a fully allocated sanitation rate study tailored for Santa Ana, including the following:
1. A rate structure based on cost of service sufficient to meet the revenue requirements
of the sanitation enterprise;
2. Classify functional expenses to cost components: capacity (demand) costs,
commodity costs, customer costs and other direct costs;
3. Classify operating, administrative, operations and maintenance (O&M) expenses,
power costs and reserve fund requirements;
4. A rate structure that considers and makes provisions for the following factors:
a. Current and future cost of providing sanitation services in accordance
with established and anticipated standards and regulations.
b. A recommended sanitation rate structure that is in compliance with
Proposition 218;
5. Provide a comparison of current sanitation rates to comparable surrounding
sanitation program;
6. The type and amount of reserves appropriate to the City's sanitation operations
taking into consideration reserves for cash flow, catastrophes, infrastructure
replacement (proprietary assets) and other appropriate purposes;
7. A comparison of customer groups and cost of service with neighboring
municipalities of comparable size, type of treatment, and level of service;
8. A review and analysis of current block sizes and seasonal rate differentials.
Consultant should recommend changes if appropriate; and
9. Consultant shall assess the recommended rate structures and their impacts on the
ability to fund sanitation operations as well as their impact on the City's rate payers;
10. A review of elderly low-income and sanitation rate programs provided by other
agencies and propose appropriate elderly low-income sanitation rate for Santa Ana;
11. The benefits of any proposed rate modifications shall be weighed against the
financial impacts on the ratepayers. Consultant shall analyze the proposed rates for
customer impacts and develop alternative rates modeled to address financial
impacts on ratepayers. The analysis shall include:
a. Preparation of typical bill comparisons for each proposed rate structure for
representative customer classes using the current rate schedules as a
baseline.
b. Compare customer class and proposed rate structures with neighboring
agencies of comparable service area.
COST OF SERVICE STUDY
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CITY OF SANTA ANA
C. DELIVERABLES
Consultant shall deliver at a minimum the following:
1. Final Cost of Service Reports
a. Digital Copy (PDF)
b. Printed and Bound Copies (15) of each
2. Proposition 218 Compliant Notice
a. Digital Copy (PDF and MS Word)
3. Pass -through adjustment calculator
a. Digital Copy (MS Excel or similar)
Consultant shall meet with the City to discuss the report's outcome and explain in detail the
full parameters and outcomes discussed in the report. In addition, the Consultant shall meet
with the City to review a draft copy of the report before submitting the final report.
IV. PUBLIC MEETINGS & PRESENTATIONS
Consultant shall participate, as requested by City, at both staff and public meetings. Consultant
shall expect to make presentations regarding the results of the cost of service study to City
executive staff, Mayor and Council and the general public. For purposes of this RFP, Consultant
shall be required to attend a minimum six (6) meetings in the range of two (2) — four (4) hours
in length in person.
V. KICKOFF MEETING
Consultant shall attend one (1) contract kick-off meeting at the City's Corporate Yard located
at 215 S. Center St., Santa Ana, CA 92703 at which City staff will share contact information,
safety and security protocols, and familiarize the Consultant with the City's sites and equipment.
VI. PROJECT MANAGEMENT & COORDINATION
Consultant shall not proceed with any work without the approval of the City's designated Project
Manager. Consultants shall invoice the City on a monthly basis for all work performed during
the period. Each invoice shall be accompanied by a summary of tasks performed, results, and
progress on long-term tasks (if any).
VII. MIDTERM REVIEW
The City intends to implement a five-year rate structure as determined appropriate by the
results of the cost of service study. Consultant shall perform a midterm review (either at Year
2 or 3 of implementation) of the adopted rate structure, revenues and expenditures, and make
recommendations/findings as to the need for any midterm rate adjustments to meet the City's
stated goals. The Consultant shall deliver an addendum report to the initial study presenting
said recommendations. The Consultant will provide an updated Proposition 218 notice if
requested by the City.
Vill. VALUE-ADDED RELATED SERVICES
COST OF SERVICE STUDY 22
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CITY OF SANTA ANA
Consultant may propose additional related services that the City has not specifically identified
in this RFP to accomplish the stated goals of this RFP. Value-added related services will be
considered by the City and may or may not be incorporated in theAgreement.
IX. FEE SCHEDULE
Consultant shall submit a fee schedule in a separate file as described in Section VII.F.3 -
RESPONSE TO RFP — PROPOSAL CONTENTS.
Fee proposal shall be outlined as follows:
1. Fee for preparing Cost of Service Report (Items I — VI)
2. Fee for performing midterm review (Item VII)
3. Firm's standard hourly fee schedules
4. Optional: Fee for any proposed value-added services, if any (item VIII)
X. TERMINATION
The City reserves the right to terminate the contract, without penalty, for cause immediately or
without cause.
This agreement may be terminated without cause by City upon thirty (30) days written
notice delivered to the Contractor either personally or by mail. Upon termination, City shall
pay to Contractor that portion of compensation specified in the Agreement that is earned
and unpaid prior to the effective date of termination.
2. In addition to, or in lieu of, remedies provided in this Agreement or pursuant to law, City
shall have the right to withhold all or a portion of Contractor's compensation for contract
services if, in the judgment of the Projects Manager or designee, falls below appropriate
standards and/or Contractor fails to satisfactorily perform contract services.
XI. CONTRACTOR OPTION FOR TERMINATION
The Contractor may request termination of the contract when conditions during the contract
make it impossible to perform or when prevented from proceeding with the contract by act of
God, by law or official action of a public authority or in the event on nonpayment by the City.
Such request will require sixty (60) days written notice prior to contract termination date
requested. In the event of nonpayment of undisputed sums by the City, Contractor shall give
the City a minimum of thirty (30) working days to cure the alleged breach.
COST OF SERVICE STUDY 23
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CITY OF SANTA ANA
EXHIBIT II
SAMPLEAGREEMENT
THIS AGREEMENT is made and entered into on this day of , 2023 by and between
, ("Consultant'), and the City of
Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws
of the State of California ("City").
RECITALS
A. The City desires to retain a Consultant having special skill and knowledge in the field of:
B. Consultant represents that Consultant is able and willing to provide such services to the City
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms
and conditions hereinafter set forth, the parties agree as follows:
SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations including all
labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete
the services described and set forth in Scope of Services - Exhibit I, attached hereto and incorporated by
reference.
2. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the
rates and charges identified in Compensation - Exhibit II. The total amount to be expended during
the term of this Agreement shall not exceed $xxxxxx.
b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice
invoievidencing work performed, subject to City accounting procedures. Payment need not be
made for work which fails to meet the standards of performance set forth in the Recitals which may
reasonably be expected by City.
3. TERM
This Agreement shall commence on the date first written above for a written number (3) year term
with the option for the City to grant up to two, one (7)-year renewals, exercisable by a writing by the City
Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below.
4. INDEPENDENT CONTRACTOR
COST OF SERVICE STUDY 24
CITY OF SANTA ANA
Consultant shall, during the entire term of this Agreement, be construed to be an independent
Consultant and not an employee of the City. This Agreement is not intended nor shall it be construed to
create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise
discretion or control over the professional manner in which Consultant performs the services which are the
subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a
manner consistent with all applicable standards and regulations governing such services. Consultant shall
pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes
relating to employees and shall be responsible for all applicable withholding taxes.
Standards and regulations governing such services. Consultant shall pay all salaries and wages,
employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall
be responsible for all applicable withholding taxes.
5. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse,
or sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible
medium of expression, including but not limited to, physical drawings or data magnetically or otherwise
recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this
Agreement ("Documents & Data'). Consultant shall require all subcontractors to agree in writing that City is
granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under
this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and
all Documents & Data. Consultant makes no such representation and warranty in regard to Documents &
Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the
Documents and Data at any time, provided that any such use not within the purposes intended by this
Agreement shall be at City's sole risk.
MINIMUM SCOPE AND LIMIT OF INSURANCE
The selected Proposer shall provide the required evidence of insurance coverage as set forth in the
standard agreement within ten (10) business days after receipt of Notice of Intent to Award.
Contractor must maintain, for the duration of its contract, insurance coverages as required by the
City.
Additionally, Contractor shall provide the following insurance coverage:
Coverage shall be at least as broad as:
Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on
an "occurrence" basis, including products and completed operations, property damage, bodily injury
and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general
aggregate limit applies, either the general aggregate limit shall apply separately to this project/location
(ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has
no owned autos, hired, (Code 8) and non -owned autos (Code 9), with limit no less than $1,000,000
per accident for bodily injury and property damage.
Workers' Compensation: as required by the State of California, with Statutory Limits, and
Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or
disease.
COST OF SERVICE STUDY 25
CITY OF SANTA ANA
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above,
the Entity requires and shall be entitled to the broader coverage and/or the higher limits maintained by
the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance
and coverage shall be available to the Entity.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on
the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the
Contractor including materials, parts, or equipment furnished in connection with such work or operations.
General liability coverage can be provided in the form of an endorsement to the Contractor's insurance
(at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20
10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Contractor's insurance coverage shall be primary coverage at
least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and
volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except
with notice to the Entity.
Waiver of Subrogation
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said
Contractor may acquire against the Entity by virtue of the payment of any loss under such insurance.
Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation,
but this provision applies regardless of whether or not the Entity has received a waiver of subrogation
endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the Entity. The Entity may require the
Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related
investigations, claim administration, and defense expenses within the retention. The policy language shall
provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named
insured or Entity.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the Entity.
Claims Made Policies (note — should be applicable only to professional liability, see below)
If any of the required policies provide claims -made coverage:
4. The Retroactive Date must be shown, and must be before the date of the contractor the beginning
of contract work.
5. Insurance must be maintained and evidence of insurance must be provided for at least five (5)
years after completion of the contract of work.
COST OF SERVICE STUDY 26
1
` CITY OF SANTA ANA
6. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form
with a Retroactive Date prior to the contract effective date, the Contractor must purchase
"extended reporting" coverage for a minimum of five (5) years after completion of work.
Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required amendatory
endorsements (or copies of the applicable policy language effecting coverage required by this clause)
and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements
to Entity before work begins. However, failure to obtain the required documents prior to the work
beginning shall not waive the Contractor's obligation to provide them.
The Entity reserves the right to require complete, certified copies of all required insurance policies,
including endorsements required by these specifications, at any time.
Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk,
prior experience, insurer, coverage, or other special circumstances.
INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees,
contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just
compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death,
and claims for property damage, which may arise from the negligent operations of the Contractor, its
subcontractors, agents, employees, or other persons acting on its behalf which relates to the services
described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just
compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from
this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just
compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of
the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement.
The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City,
including fees and costs for special counsel to be selected by the City, regarding any action by a third party
challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation,
restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or
effects arising from this Agreement. City may make all reasonable decisions with respect to its representation
in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil
Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section
2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct
of the Contractor.
INTELLECTUAL PROPERTY INDEMNIFICATION
Contractor shall defend and indemnify the City, its officers, agents, representatives, and employees against
any and all liability, including costs, for infringement of any United States' letters patent, trademark, or
copyright infringement, including costs, contained in the work product or documents provided by Consultant
to the City pursuant to this Agreement.
RECORDS
Contractor shall keep records and invoices in connection with the work to be performed under this
Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred
under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum
period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant
under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a
COST OF SERVICE STUDY 27
CITY OF SANTA ANA
representative of the City to examine, audit, and make transcripts or copies of such records and any other
documents created pursuant to this Agreement during regular business hours. Consultant shall allow
inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of
three (3) years from the date of final payment to Consultant under this Agreement.
CONFIDENTIALITY
If Contractor receives from the City information which due to the nature of such information is reasonably
understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such
information except in the performance of this Agreement, and further agrees to exercise the same degree of
care it uses to protect its own information of like importance, but in no event less than reasonable care.
"Confidential Information" shall
include all nonpublic information. Confidential information includes not only written information, but also
information transferred orally, visually, electronically, or by other means. Confidential information disclosed
to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing
obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in
publicly available
sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful
possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by
operation of law; or (e) is independently developed by the Consultant without reference to information
disclosed by the City.
CONFLICT OF INTEREST CLAUSE
Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which
would conflict in any manner with performance of services specified under this Agreement.
NON-DISCRIMINATION
Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military
and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law,
in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment
related activities or any services provided under this Agreement. Consultant affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local laws and regulations.
EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and Contractor, and
supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict
between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail.
This Agreement may not be modified except by written instrument signed by the City and by an authorized
representative of Contractor. The parties agree that any terms or conditions of any purchase order or other
instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or
obligate Consultant or the City. Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting
on behalf of any party, which is not embodied herein.
ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may
not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City
and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be
considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any
COST OF SERVICE STUDY 28
pT�
CITY OF SANTA ANA
of the services which are the subject to this Agreement performed by City personnel or by other Contractors
retained by City.
TERMINATION
The City reserves the right to terminate the contract, without penalty, for cause immediately or without cause.
This agreement may be terminated without cause by City upon thirty (30) days written notice
delivered to the Contractor either personally or by mail. Upon termination, City shall pay to
Contractor that portion of compensation specified in the Agreement that is earned and unpaid
prior to the effective date of termination.
2. In addition to, or in lieu of, remedies provided in this Agreement or pursuant to law, City shall
have the right to withhold all or a portion of Contractor's compensation for contract services if,
in the judgment of the Projects Manager or designee, falls below appropriate standards and/or
Contractor fails to satisfactorily perform contract services.
WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions
of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure,
right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other
breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver
unless the writing so specifies.
JURISDICTION -VENUE
This Agreement has been executed and delivered in the State of California and the validity, interpretation,
performance, and enforcement of any of the clauses of this Agreement shall be determined and governed
by the laws of the State of California. Both parties further agree that Orange County, California, shall be the
venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of
this Agreement.
II. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals,
waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and
regulations of the United States, the State of California, the City of Santa Ana and all other governmental
agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such
permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this
Agreement.
III. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this contract shall be in writing and
shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage
prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the
following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
COST OF SERVICE STUDY
29
CITY OF SANTA ANA
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956
With courtesy copies to:
To Contractor:
First & Last Name
Title
Consultant Firm Name
Address
City, State, Zip
Fax:
A party may change its address by giving notice in writing to the other party. Thereafter, any communication
shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or
deemed to have been given three (3) days after it has been deposited in the United States mail, duly
registered or certified, with postage prepaid, and addressed asset forth above. If sent by fax, communication
shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the
transmission report issued by the transmitting facsimile machine, addressed as set forth above. For
purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be
excluded.
IV. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power,
authority and right to bind their respective parties to each of the terms of this Agreement, and
shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or
damages to City in the event that such authority or power is not, in fact, held by the signatory
or is withdrawn.
b. The Agreement is the final and complete agreement and any prior or contemporaneous
agreements for similar services between the parties is superseded by this Agreement. This
shall not apply where the Parties are currently engaged and Consultant is providing services
not contemplated by this Agreement.
C. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in
the body of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above
written.
ATTEST:
Clerk of the Council
CITY OF SANTA ANA
Kristine Ridge
City Manager
COST OF SERVICE STUDY 30
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
0
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
CITY OF SANTA ANA
CONSULTANT:
(name)
(title)
SAMPLE ONLY
COST OF SERVICE STUDY 31
CITY OF SANTA ANA
ATTACHMENT A
REFERENCES
THIS SHEET MUST BE COMPLETED IN ENTIRETY AND
RETURNED WITH OFFEROR'S PROPOSAL
List and describe fully the contracts performed by your firm which demonstrate your ability to provide the
services included in the scope of the proposal specifications. Attach additional pages if required. The City
reserves the right to contact each of the references listed for additional information regarding your firm's
qualifications & customer service reputation.
Customer Name:
Address:
Project Name:
Brief Description of Scope of Work:
Customer Name:
Address:
Project Name:
Brief Description of Scope of Work:
Customer Name:
Address:
Project Name
Brief Description of Scope of Work:
Reference No. 1
Contact Individual/Email:
Phone Number:
Facsimile Number:
Year:
Reference No. 2
Contact Individual/Email:
Phone Number:
Facsimile Number:
Year:
Reference No. 3
Contact Individual/Email:
Phone Number:
Facsimile Number:
Year:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
COST OF SERVICE STUDY 32
CITY OF SANTA ANA
ATTACHMENT B
NON -COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and Public Contract Code Section 7106)
To the CITY OF SANTA ANA
In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the proposer
declares that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership,
company, association, organization, or corporation; that the proposal is genuine and not collusive or sham;
that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or
sham proposal, and has not directly or indirectly colluded, conspired, connived or agreed with any proposer
or anyone else to put in a sham proposal, or that anyone shall refrain from bidding; that the proposer has not
in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix
the proposal price of the proposer or any proposer, or to fix any overhead, profit, or cost element of the
proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding
the contract of anyone interested in the proposed contract; that all statements contained in the proposal are
true; and, further, that the proposer has not, directly or indirectly, submitted his or her proposal price or any
breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will
not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any
member or agent thereof to effectuate a collusive or sham proposal.
Note: The above non -collusion affidavit is part of the proposal. Signing this proposal on the signature portion
thereof shall also constitute signature of this non -collusion affidavit. Proposers are cautioned that making a
false certification may subject the certifier to criminal prosecution.
State of , County of
Subscribed and sworn to (or affirmed) before me on this day of , 20_, by
, proved to me on the basis of satisfactory evidence to be the person(s) who
appeared before me.
Notary Public Signature Notary Public Seal
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
COST OF SERVICE STUDY 33
CITY OF SANTA ANA
ATTACHMENT C
NON -LOBBYING CERTIFICATION
The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her
knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to
any person for influencing or attempting to influence an officer or employee of any Federal agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress
in connection with the awarding of any Federal contract, the making of any Federal grant, the making
of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any Federal agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall
complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its
instructions.
This certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering into this
transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each
such failure.
The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require
that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and
that all such subrecipients shall certify and disclose accordingly.
Signed:
Title:
Firm:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
COST OF SERVICE STUDY 34
CITY OF SANTA ANA
ATTACHMENT D
NON-DISCRIMINATION CERTIFICATION
The undersigned consultant or corporate officer, during the performance of this contract, certifies as follows:
The Consultant shall not discriminate against any employee or applicant for employment because of race,
color, religion, sex, or national origin. The Consultant shall take affirmative action to ensure that
applicants are employed, and that employees are treated during employment without, regard to their
race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship. The Consultant agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination
clause.
2. The Consultant shall, in all solicitations or advertisements for employees placed by or on behalf of the
Consultant, state that all qualified applicants will receive consideration for employment without regard to
race, color, religion, sex, or national origin.
3. The Consultant shall send to each labor union or representative of workers with which he/she has a
collective bargaining agreement or other contract or understanding, a notice to be provided advising the
said labor union or workers' representatives of the Consultant's commitments under this section, and
shall post copies of the notice in conspicuous places available to employees and applicants for
employment.
4. The Consultant shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of
the rules, regulations, and relevant orders of the Secretary of Labor.
5. The Consultant shall furnish all information and reports required by Executive Order 11246 of September
24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will
permit access to his/her books, records, and accounts by the administering agency and the Secretary of
Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders.
In the event of the Consultant's non-compliance with the nondiscrimination clauses of this contract or
with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended
in whole or in part and the Consultant may be declared ineligible for further Government contracts or
federally assisted construction contracts in accordance with procedures authorized in Execution Order
11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as
provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the
Secretary of Labor, or as otherwise provided by law.
2. The Consultant shall include the portion of the sentence immediately preceding paragraph (1) and the
provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by
rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order
11246 of September 24, 1965, so that such provisions will be binding upon each subcontract
or purchase order as the administering agency may direct as means of enforcing such provisions,
COST OF SERVICE STUDY 35
CITY OF SANTA ANA
including sanctions for noncompliance; provided, however, that in the event the Consultant becomes
involved in, or is threatened with, litigation with a subconsultant or vendor as a result of such direction by
the administering agency, the Consultant may request that the United States enter into such litigation to
protect the interests of the United States.
8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended,
no discrimination shall be made in the employment of persons upon public works because of race,
religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or
sex of such persons, except as provided in Section 1420, and any consultant of public works violating
this Section is subject to all the penalties imposed for a violation of the Chapter.
Signed:
Title:
Firm:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
COST OF SERVICE STUDY 36
n
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March 20, 2023 1 RFP No. 23-029
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INTEGRATED i UTILITY ! SOLUTIONSI S C S ENGINEERS
Environmental Consultants and Contractors
4683 Chabot Drive, Suite 200, Pleasanton, CA 94588
386.546.7719 1 Offices Nationwide I www.scsengineers.com
Table of Contents
Cover Letter
Z Firm & Team Experience
5 Understanding the Need
10 Relevant Project Experience
Attachments - A-D (separate document)
Fee Proposal (separate document)
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SCS ENGINEERS
SCS ENGINEERS
March 20, 2023
Elizabeth Rubio, Projects Manager
City of Santa Ana — Public Works Agency
220 S. Daisy Avenue
Santa Ana, CA 92703
SCS Management Services
Subject: RFP No. 23-029 1 Sanitation Services Users Charge Cost of Service Study
Dear Ms. Rubio:
The City of Santa Ana has requested a proposal for a Sanitation Cost of Service Study. The goal of your
study is to develop a long-term financial plan for the City's Sanitation Services Users Charge that will
generate sufficient revenues to support operations, capital and fleet replacements, and other financial
requirements while minimizing the impact to your customers. Additionally, the study will review your cost
to provide services and develop rate structures that are equitable, easy to understand and bill, and are
consistent with best practices.
You need the services of experts to perform your financial analyses and provide you with the financial
solution you require for long-term financial sustainability, while meeting your operational goals. I (Vita
Quinn) am your Project Manager. I am on the Board of Directors for the Solid Waste Association of
North America (SWANA), am SCS' National Expert on Rate Studies, and lead our Management
Services practice. I will lead all of the work on this project and remain committed as Project Manager
throughout the project duration.
Tim Flanagan and Stacey Demers will lead the analysis of user characteristics, operations, and capital
needs. Tim has extensive experience in solid waste operations in southern California and is the current
SWANA President. Stacey performs research and operational planning, program analysis, and rate
benchmarking studies for cities across the country. We will receive support from the other team members
listed in this proposal and, to the extent required, can leverage hundreds of other consultants available
for this work.
Our goal is to combine our models and communication processes in a way that keeps you involved
and informed, is efficient and cost-effective, and gets the results you require.
Vita Quinn and Tim Flanagan are authorized to enter into and negotiate contracts with the City as
required. The contract will be managed from our Pleasanton office and the office address and phone
number are located below. As a corporation, SCS Engineers is in concurrence with the provisions
contained in EXHIBIT II — Sample Agreement of this RFP. The pricing will be valid for 24 months. If you
have questions concerning any aspect of this proposal, please contact me at 386-546-7719 or
VQuinn@scsengineers.com.
Sincerely,
Vita Quinn, MBA
Director of Management Services
SCS Engineers
Tim Flanagan
Project Director
SCS Engineers
Firm and Team Experience
Rate & Management Consulting Expertise
Rate studies, billing/policy reviews, and efficiency improvements for local governments are at the core of our
Management Services practice. We also possess comprehensive knowledge covering the entire spectrum of utility
industry issues. The professionals on SCS's project team for this assignment have completed similar rate studies,
financial assessments, capital plans, strategic plans, program assessments, system evaluations, privatization
evaluations and/or other financial evaluations and modeling efforts.
Other Selected SMM & Management Services Capabilities
• Zero Waste Plans
• Business Advisory Services
• Feasibility Analysis
• Organizational Structure
• Labor/Operational Benchmarking
• Customer Billing & Service Reviews
• Rate/Cost of Service Studies
• Indirect Cost Apportionment
• Public/Private Partnerships
• Collection Assessments
• Diversion Program Development
• Evaluation of Plan Alternatives
• Expert Witness Testimony
• Public Education Programs
• Regulatory Reporting
Our Team of Experts
• Waste Generation Studies
• Cost -Benefit Analysis
• Affordability Analysis
• Operational/Process Improvements
• Benchmarking of Services & Fees
• Performance Reviews
• Hauler Audits
• Development Impact Fees
• Non -Ad Valorem Assessments
• Public -Private Partnership Planning
• Sustainability Plans
• CIP/Asset Management Plans
• Workshops and Seminars
• Contract Management Solutions
• Policy/Ordinance Review
Our team members, highlighted on the following pages, combine technical expertise and knowledge of the political
environment with the ability to meet your greatest challenges.
6
VITA
QUINN, MBA
Project
Manager
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&OpeCommunity Outreach& :R�'SherCarroll
&Data Proposition 218 h�'�,`.i Lead Analysts
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EDUCATION
MBA — Finance/Real Estate Development, Nova Southeastern University, Florida
BS — International Economics, Florida Atlantic University, Florida
RELEVANT PROFESSIONAL AFFILIATIONS
Solid Waste Association of North America — Board of Directors, American Public Works Association
SELECTED RATE & COST OF SERVICE STUDIES
• Village of New Lothrop, MI — Wastewater/Stormwater
Asset Management Plan
• City of Myrtle Beach, SC — Collections Rate & Transfer
Fee Study / Billing Analysis
• City of Brownsville, TX — 5-Year Financial
Services/Rate Studies
• Stanford University, CA —Annual Rate Studies
• City of Anaheim, CA — Resort Assessment District
Revenue Sufficiency Analysis / Solid Waste Revenue
Sufficiency Analysis and Updates
• City of Council Bluffs, IA — Landfill and Recycling
Center Revenue Sufficiency Analysis
• City of Monrovia, CA — Hauler Rate Analysis
• Reno County, KS — Annual Rate Model
Updates/Reserve Calculation
• Broward County, FL — Revenue Development &
Benchmarking for Proposed Independent Authority
• City of Bristol, VA — Solid Waste Collection Rate Study
• City of Wauchula, FL — Solid Waste Rate Study
• City of Grand Island, NE — Landfill Tipping Fee Study
and Capital Feasibility Analysis
• City of Dothan, AL — Environmental Svcs Rate Study
• City of New Braunfels, TX — Solid Waste Management
Plan Update and Rate Study
• City of West Palm Bch, FL — Solid Waste Rate Study
• City of Odessa, TX — Solid Waste Management Plan
• City of Sheridan, WY — Tipping Fee Study and
Financial Assurance Estimates
• City of Port Orange, FL — Water & Sewer Rate Study
• Okaloosa County, FL — Water & Wastewater Revenue
Sufficiency Analyses
• City of Galveston, TX — Water and Sewer Rate Study
and Benchmarking Analysis
• Clay County Utility Authority, FL — Water & Sewer
Revenue Sufficiency, Lakes Replenishment Program
Funding Analysis, and Comparative Impact Fee Study
• City of Neptune Beach, FL — Water & Sewer Revenue
Sufficiency Analysis
• City of Temple Terrace, FL — Solid Waste and General
Fund Integrated Analysis
• Indian Creek Village, FL — General Government
Financial Sustainability Analysis
• City of Davis, CA — Solid Waste Rate Study
• Greenville County, SC — Solid Waste Tipping Fee
Study
• City of Cocoa, FL — Integrated Utility Analysis,
Regional Water Rate Development
• City of Atlanta, GA — Solid Waste Rate & Utility
Billing Study
• Ft Lauderdale, FL — General Fund, Water, Sewer,
Stormwater, Sanitation, Spec Rev Funds Analysis
• City of Sheridan, WY— Water, Sewer, & Solid Waste
Rate and Financial Plan Updates
• Junction City, OR— Water, Sewer, and Sanitation
Cost of Service Study
• Nassau County, FL — Rate Study, Customer Deposit
Review, Miscellaneous Fee Development
• City of Tempe, AZ — Solid Waste Rate Design
• City of Denton, TX — Rate Study and Benchmarking
• Culver City, CA — Solid Waste Rate Study
• City of Virginia Beach, VA — Solid Waste Revenue
Sufficiency Analysis
• Yakima County, WA — Solid Waste Management
Plan and Rate Study
• City of Killeen, TX —Solid Waste Rate Study
• City of St. Cloud, FL — General Fund & Utility
Integrated Analysis (Water, Sewer, Bulk Water)
• Indian Creek Village, FL —Water and Stormwater
Revenue Sufficiency Analysis
• Village of Pinecrest, FL — Stormwater Fee Study
• Cass County, IA— Landfill Revenue Sufficiency
• City of Coconut Creek, FL — Water/Wastewater
Utility Rate Study
• City of Cape Coral, FL — Water & Sewer Rate Study
• City of Alliance, NE — Landfill Revenue Sufficiency
• Town of Mount Dora, FL — Stormwater Rate Study
• City of Clearwater, FL — Water, Sewer, and Solid
Waste Revenue Sufficiency Analysis
• City of Zephyrhills, FL — General Fund Financial
Sustainability Analysis
• City of Fort Myers, FL — General Fund Financial
Sustainability Analysis
• City of New Port Richey, FL — General Fund and
Utility Integrated Financial Sustainability Analysis
Outreach & Prop 218 Compliance
EDUCATION BA— Public Policy and Economics, University of California, Santa Barbara
RELEVANT PROFESSIONAL AFFILIATIONS
Solid Waste Association of North America — President; Executive Board
California Resource Recovery Association
National Recycling Coalition
National Legislative Committee — National "Buy Recycle" Alliance
U.S. Conference of Mayors Advisory Committee for Solid Waste Mgmt and Resource Recovery — Devt Committee
Leadership Monterey County — Member, Board of Directors
Chaired/Appointed to Various County and State Elected Offices and Committees
Chambers of Commerce (Southern California) — Former Board Member
PROFESSIONAL EXPERIENCE
Mr. Flanagan is a professional executive with 40 years of extensive expertise developed within various levels of
private and governmental entities or sectors. He has championed and established cutting -edge waste reduction and
recycling programs as a skilled communicator and team leader, and has directed multi -state domestic and export
recycling tonnage marketing and sales efforts through key strategic industry partnerships. In his previous positions, he
successfully managed multi -million -dollar capital improvement projects for construction of new recycling and materials
processing facilities, restoration projects, and key public works projects, from project design through California
Environmental Quality Act (CEQA), permitting, and construction processes. Additionally, he has familiarity and
practical knowledge of "Green Building" practices.
EDUCATION BS — Statistics, Virginia Polytechnic and State University
PROFESSIONAL EXPERIENCE
Stacey has 30 years of experience in the solid waste field focusing on developing, evaluating and improving
programs that reduce waste, increase recycling, and divert organics. As SCS's national expert in waste
characterization, she has a strong working knowledge of the types and quantities of materials in various waste
streams and customizes zero waste strategies by material and generator type.
She has strong analytical skills in planning, statistics, program/operational benchmarking, and cost modeling. Her role
includes analysis of user characteristics, operational evaluation, and data analysis. _
Our Management Services group has financial analysts, data analysts, and management an
ready to perform the services you require. Kellyn and Sher will be lead analysts for this project
team. Their experience working with large data sets, managing databases, and creating financial
models for forecasting and cost saving for local government clients make them ideal for this project.
Their experience with financial modeling and visualization along with rate and fee development helps 9
provide clients with an accurate and proficient analysis. mv�
Our financial sustainability solutions include revenue sufficiency analysis, cost of service studies,
and rate design. Our references, process, and proposed work plan are in the following sections.
Understanding the Need
Background
The Sanitation Services Users Charge (Charge or Fee) of $5.35 per month, is
den Grove
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paid by approximately 89,000 customers on a bimonthly basis. The Environmental
Sanitation Program enforces municipal codes for right-of-way obstructions, illegal
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advertising, weed/rubbish abatement, and refuse violations. Among the services
Santa Ana ®Santa Ma Zoo
Austin
provided are street sweeping, abandoned item collection, sidewalk cleaning and
power washing, cleaning services for illegal dumping areas, sidewalk and alleyV_�IpHertage
Museumcleaning,
right-of-way inspection and enforcement, and weed abatement. The
Orange County
program also coordinates with neighborhood associations to assist in beautifying
their properties and neighborhoods.
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Let's Consider the Issues the City is Facing
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Museu oHFrt
Increased Cost
The City has operated without a Fee increase since 1996, allowing your businesses and residents to be the
beneficiary of low-cost services for nearly 30 years. However, salaries, contractual costs, and other operational costs
increase over time, despite receiving a tremendous amount of scrutiny by public officials and community stakeholders.
For FY 2023, the Fee is budgeted to generate about $6.3 million in annual revenues, but incur about $7.3 million in
expenses, a significant increase over prior years. The increased cost of Street Sweeping due to prevailing wage
regulation is partly responsible for this increased cost. As a result, the City is considering changing its level of service
in terms of linear miles or frequency to accommodate these cost increases. Additionally, inflation due to economic
pressures and supply chain issues has dramatically increased costs of everything from technology to fuel, further
putting pressure on the City's revenue sufficiency.
Increased Service Level Demand
As the City of Santa Ana has grown to be the center of Orange County for many events and services, so has the need
to handle the increased influx of both daytime and night time populations. Streets sweeping, sidewalk and alley
cleaning, and illegal deposits/rubbish removal, have all seen a rise in service demands.
How do these issues affect financial sustainability?
Your financial health as a utility is dependent on how many paying customers the City has, as well as how much
waste is disposed. Regardless of the number of customers or containers tipped in a year, your costs continue to
increase, and most of those costs are fixed. Disposal costs, although variable based upon the amount of waste
disposed, can be subject to tipping fee increases. Likewise, increasing costs of supplies, salaries, and routine capital
cause your expenses to increase annually. And operational inefficiencies can further add to ongoing expense.
Recognizing that current revenues are insufficient to fund ongoing costs of operations and capital, the City has
chosen to engage a qualified firm to provide an analysis and to develop a financial management plan and rate
structure to generate the required revenue while minimizing the impact on the City's residents.
Now that we understand your problems, we want you to understand our solutions...
While our financial models support decision -making, our added value is our client focus, industry
experience, and technical ability that we leverage to identify innovative solutions to your problems.
1
Our Approach
Updating your rates begins with our suite of utility rate and financial planning models that we customize to reflect
the City's available funds, budgeting and actual spending, customer information, and capital program. The models are
designed to:
• Identify assumptions and variables
• Examine historical trends and performance
• Forecast financial requirements
• Test alternative what -if scenarios
• Calculate cost of services for each rate/service component
• Determine the sufficiency of current rates to recover the cost of services
• Design updated rates based on cost to provide services and influence behavior
Our detailed approach and planning tools will allow our project team to work closely with City utility staff, finance
staff, and City Administration to develop and get support for a long-term financial plan. We will utilize our models in
interactive work sessions with City staff to review what -if scenarios and develop strategies to implement a sustainable
rate and financial plan.
Steps to a Successful Rate Study
There are several steps to calculating cost -of -service based rates. This section describes the ratemaking process and
how we will work with the City to develop rates tailored to your system dynamics, diversion initiatives, and service
levels. The steps also detail interaction with City staff, administration,
elected officials, and the public that are required to facilitate the
desired outcomes for vour studv.
Compile and Review Existing Information
We will begin our study by scheduling a kickoff meeting with our
team and City staff to discuss key issues, near and long-term goals,
and metrics that you consider to be most important to your financial
performance. At this meeting we will also distribute our data request,
discuss the items required for our analysis, and the platform we
will use for data transfer.
e
• Share
Create Public Meetings
Outreach
Rates
-Fees -Implementation
Plan -Capital Program
Review Policies - Funding Strategy
-Discuss Goals
We will establish who will be involved in the process, the key members of our team and your key staff, and discuss
the project schedule for interactive work sessions with your staff, meetings with your Council, and final deliverables.
We will work with you to obtain all information relevant to understanding your existing operations and costs for
provision of service to customers. Once we start to receive the data, we will begin an in-depth review. We will also
review any other data provided and remain in contact if we need clarification prior to our first interactive work session.
Revenue Sufficiency (Existing Cost of Service)
SCS uses an interactive modeling approach that allows input from you as we develop customized financial
solutions. We will perform a revenue sufficiency analysis to determine the long-term sustainability of your solid waste
system revenues, including a 10-year financial management plan and associated plan of rate adjustments.
During meetings with your staff, we display the models and work with you to test multiple "what if' scenarios that
consider your financial sensitivity to changes in various variables. For example, we can test the impact of changes to
your vehicle program costs and timing, and the associated impact on operating expenses and staffing requirements.
For each scenario considered, we will identify the necessary revenue adjustments, including any borrowing that may
be required, and the associated financial, fund balance, and customer impacts.
We will also evaluate capital funding alternatives, including cash funding, debt funding, grants, or any other financing
alternatives the City is considering. The results are displayed in a simple, graphical format that allows for easy
comparison of scenarios. Some of the steps in this process are detailed in the following sections.
Expense Projection
To project your revenue requirements, we review your historical budgeted and executed operating expenses, all
planned capital improvements and associated funding sources, existing debt service and coverage ratios, available
and recommended operating, capital, and debt service reserves, and any financial policies and reserve requirements
dictated by policies of the City. We will also consider your goals to address during the study, such as cash
reserve targets, operational changes, or hiring needs.
We study changes in capital and labor costs and how this will affect your expenses. Using cost escalators, we
estimate your future expense increases and the nature of any expenses that may be contractual or one-
time/temporary. As we tailor our model to your operations, we identify any other issues or questions affecting
financial performance to discuss with you during our first interactive meeting.
Capital Program Review
One of the largest expenditures driving the need for rate increases is the cost of capital outlay required to meet
current and future service needs and regulatory requirements. In addition, there are significant renewal and
replacement cost requirements to preserve the reliability and useful life of your equipment and other assets. The
City must consistently fund vehicle replacements or incur increases in repair and maintenance costs. And
implementing new programs often requires additional carts, routes/vehicles, or other capital expense.
We will perform a detailed review of your current capital program, including vehicle/equipment replacements and the
anticipated sources of funds available to pay for these projects. This discussion of funding is important to reducing
the impact of capital on rates. Recognizing this, we will:
• Review the level of your budgeted capital spending vs needed capital investment,
• Consider the priority of individual items within your capital plan,
• Review all restricted and unrestricted funds available for projects,
• Discuss timing of project expenditures, and
• Consider external funding sources, such as grants or loans, that may mitigate rate impacts.
In meetings with City staff, we will review the level of capital or types of projects the City historically cash funds from
rate revenues. We will evaluate the pros and cons of alternative capital funding practices, and financial considerations
associated with leveraging debt financing. We will consider whether the City could adapt its use of cash and debt
funding to maximize available cash reserves and limit risk. Working with you, we will develop a recommended
capital spending and funding plan for the identified capital and future capital needs.
Financial Management Plan
Based on our analysis and interactions with staff, we now have a forecast of your system growth and anticipated
revenues under your current rates. We also have a projection of operations and maintenance expenses, capital
investment, debt service payments, and the resulting fund balances in each year of the projection period.
The final step is to review the scenarios the City may wish to consider for project timing and funding, policy changes,
or sensitivity to changes in any of the assumptions used in the analysis and then develop a long-term plan of rate
adjustments for each scenario. Working with you, we identify the scenario that best reflects your anticipated and
desired outcomes while minimizing rate impacts to your customers. This plan will provide the revenue
requirements used as the basis for updating the structure of your rates.
It is important to note that the City/SCS will update this analysis at the time of the midterm review. At that time, we
will compare the anticipated outcomes from the rate/rate structure updates to the actual revenues and financial
outcomes the City is experiencing.
Cost of Services
Once the above is complete, we will analyze the City's costs to provide various services to its customers by
examining each line item in the budget. Our Cost Allocation Model takes the revenue requirement from and
equitably allocates costs to each Fee component (street sweeping, illegal dumping, right of way maintenance, etc.)
according to number of instances, how services are provided, and the City's current customer profile.
We will prepare a detailed statistical analysis of the City's recent service levels, population growth, and
tonnage/service level trends. By looking at several years of data, we can consider factors important to serving your
customers and evaluating your costs of service and potential rate structure changes:
• What services are provided?
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• How does the nature of providing those services differ? Are there varying times to respond, staffing,
equipment, etc. for each service?
• What customer classes do you serve in addition to residential?
• What other services are included in the Fee, if any?
This process allows you to see the revenue generated for various services/customer classes versus the expenses
incurred in providing those services to your customers.
The outcome of this analysis then becomes the basis for the net revenue requirement used in the
rate structure analysis.
Rate Benchmarking
To assist in the next step of rate structure analysis, we will conduct a survey of nearby comparable entities to
determine the City's current and proposed charges for the average customer relative to these other entities.
Rate Structure Analysis
Once the cost of services analysis is complete, we will use our Rate and Fee Model to examine the City's current Fee
and identify any structural adjustments to consider in developing your new user fee. We will obtain historical billing
data and/or property data and analyze current billing practices. We will identify the revenue requirement based on
the results of the revenue sufficiency analysis and cost of service analysis, and use this revenue requirement and the
results of the billing data analysis in considering alternative rate structures.
We will analyze the City's current rate structure and projected changes in customer characteristics. We examine many
factors important to potential rate structure changes, such as: historical and current fee structure and billing, franchise
fees and agreements, miscellaneous or one-time service fees, customer sensitivity to fee changes, projected changes
in population/service levels, tonnage/volume data, and City ordinances and policies relevant to the analysis.
In developing recommendations, we will also consider your desire to encourage diversion and implement new
programs. Our project team will develop rate structure recommendations that comply with best practices for
ratemaking and relevant legislation. During meetings with staff, we will discuss rate recommendations for your user
fee and other miscellaneous fees based on the current structure and suggested adjustments. We will discuss the
basis of the recommendation and test the sensitivity of the rate changes to various customer classes and demand
characteristics. The goal is to develop a structure that will be easily understandable and easy to administer and
that will accurately reflect the dynamics of your solid waste system while equitably distributing costs.
Lifeline Rates & Policy Review
As part of the rate study, we will discuss with City staff any policies/ordinances/resolutions concerning solid waste that
may be out of date or no longer reflect the services you provide to your customers and additional items that could be
included in your ordinances/resolutions in the future.
This is an appropriate time to also discuss other City policies that can be updated or have been analyzed during the
rate study process, such as lifeline rates for elderly or low-income residents, working capital reserve targets,
capital/rate stabilization reserve funding, indirect administrative cost allocation to departments/funds, etc.
Presentation of Results & Implementation Assistance
Customer Impacts & Plan for Public Meetings
A well -designed rate structure only benefits you if it is adopted and implemented. With this outcome in mind, it is
important to consider the impact of recommended changes on the average customer.
It is also helpful at this point to include the City Manager or other officials in City Administration in a conversation of
the key issues and the basis for the recommendations prior to public meetings. This conversation allows us to get
support and direction regarding key items of interest to the public and/or elected officials that may be important
to gaining support. Once we have agreed on the rate/policy recommendations to be presented to the public and
Council, we will begin the presentation of results.
Written Narrative
We will develop outputs of the assumptions and projected revenues, expenses, rate adjustments, and rate structure
changes used in developing the analysis. These will be included in our draft and final technical memorandums for
your review and feedback. We will create a memorandum detailing the analysis performed, comparable entities
identified, performance metrics considered and how the City compares, and recommendations for the City to
consider. The draft memorandum will be distributed to City staff for review and comment. Upon receiving comments
from City staff, we will adjust our analysis and/or narrative as required and distribute the final memorandum.
Once all of the analyses are complete, we will provide the City with detailed schedules containing all of the
assumptions and detailed projections used in developing the analysis. The detailed schedules will also be included in
the draft report then be distributed to the City for thorough review and comment.
Implementation/Prop 218 Support
The rates that SCS will calculate will support the requirements of Prop 218. Additionally, we will assist the City in
preparing a notice that will need to be mailed to all property owners/customers at least 45 days prior to a public
meeting. At the meeting, residents can protest. If there is no majority protest, fees can be adopted.
Based on the cost to provide services and rate structure analysis described above, the rates SCS will develop
with the City will meet all of the Proposition 218 requirements.
Public Meetings
In addition to the written report, we will develop a PowerPoint presentation summarizing the findings. Then we will
also attend a meeting with the City Council and/or the public where we will present the results of our analysis. As
earlier discussed, it is important to have early interaction with key stakeholders, but this is the first time many of the
residents will hear the details of the rate study performed. It is important to convey that the City is acting in the best
interests of the residents. We will communicate:
• The responsibility of a sanitation utility to provide an essential service and protect the environment
• The key issues you are facing and the associated costs driving the need for additional revenue
• The basis for calculating rates, including the equitable distribution of costs and desire to encourage
diversion
• Sensitivity in customer demand or satisfaction as a response to rate changes
• Miscellaneous or one-time services that could be charged fees and not included in the base rates
What Makes Our Project Approach Different?
Project success couples experience in political decision making with input from you and your staff, and the
technical ability to plan for your future success. We understand that an effective financial plan does not look to
simply "balance the budget". Rather, it should be a long-term forecast that helps guide future decision -making,
identifying trends and vulnerabilities that affect long-term financial sustainability. An effective plan should account
for known costs (capital, operations, etc.), while also testing the sensitivity of the outcomes to changes in variables.
Our strategic approach combined with effective communication demonstrates to you, your
Council, and your residents how today's decisions will affect future outcomes.
Sanitation Cost of Service Study Project Schedule
Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Project Initiation
Revenue Sufficiency Anal)
Cost to Provide Services
Rate Benchmarking
Rate Structure Analysis
Ordinance/Policy Review
Presentation of Results
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ISCS ENGINEERS ENGINEERS
Similar Project Experience
Over the years, SCS has literally completed hundreds of studies. Your Project Manager, Vita Quinn, has completed
revenue sufficiency and/or cost -benefit analysis studies for the City of San Antonio, Texas; City of Myrtle Beach,
South Carolina; and City of Atlanta, Georgia, just to name a
;cs ., ye, e rsel. _es a,eiecrs few, in the last several years. References are provided on
1K ;L, dIV Attachment A.
The map visually illustrates the locations of key offices and
recent projects in this practice.
WE ENCOURAGE YOU TO REACH OUT TO
ANY OF OUR CLIENTS TO DISCUSS THEIR
SATISFACTION WITH OUR SERVICES.
Other Recent/Current SCS Financial and Rate Study Projects
Revenue Sufficiency and City of Glendale, California Evaluate options for franchising commercial collection, develop revenue
Rate Analysis
sufficiency model to evaluate rates and service option, assess regulatory
environment and provide recommendations on changes necessary to franchise
in Counties.
Revenue Development for Broward County, Florida
Developing the anticipated capital and operational expense for an authority
Solid Waste Authority
to build and operate waste -to energy, yard waste, MRF, and several transfer
facilities. Also developing the level of processing fee, transfer fee, and
special assessment revenue required to support this investment of
approximately $1.5 in capital and the cost of operations.
Comprehensive Solid Yakima County,
Prepared a SWMP Update, including a detailed waste flow analysis, evaluation
Waste Management Plan Washington
of the recycling potential of materials, and a financial model of the options
under consideration, which was used to develop a 5-year plan costs and
revenues, presented to the County and Solid Waste Advisory Commission,
Solid Waste Management City of Odessa, Texas Analysis of operations, projected services, waste stream, and demographic
Plan & Fleet Rental Rate changes, and financial recommendations for the City's collections. Included
Analysis long-term plan of financiallrate increases. Also performing annual analysis of
entire Citys fleet age, costs, repairs and reimbursements to the City's Fleet
Maintenance Department.
Operational Analysis Baltimore County, Maryland Analysis of operations and administration of billing at County's transfer stations,
landfill, and administration/billing department office. Recommendations
presented to County Administrator; implementation underway.
REFERENCES FOR THE ABOVE CAN BE FURNISHED UPON REQUEST.
10
Oropeza, Judith
From: City of Santa Ana <certificate-request@ctrax.jdidata.com>
Sent: Wednesday, August 16, 2023 4:02 PM
To: Oropeza, Judith; awhisenhunt@lockton.com; Rubio, Elizabeth;
vquinn@scsengineers.com
Subject: Internal Notice of Compliance
NOTICE OF COMPLIANCE
CITY STAFF: PRINT THIS PAGE AND INCLUDE WITH AGREEMENT TO THE CLERK OF THE COUNCIL
Contractor SCS Engineers
Name:
Project TBD (044)
Number:
Project Consultant Agreement Between The City Of Santa Ana And Stearns,
Name: Conrad & Schmidt, Consulting Engineers, Inc. For A Cost -Of -Service
Study For The Sanitation Services Users Charge
The Certificate of Insurance (COI) submitted indicates that the coverages are in compliance with the
insurance requirements. No further action is required at this time.
The compliant coverage(s) are:
TYPE OF INSURANCE POLICY EXPIRATION COI DATE FILE NAME
NUMBER DATE
SCSENOI - City
AUTOMOBILE LIABILITY
BAPOI 1278008
04/01/2024
08/07/2023
of Santa Ana -
19795642.pdf
SCSENOI -City
GENERAL LIABILITY
GLOW 1277808
03/31/2024
08/07/2023
of Santa Ana -
19795642.pdf
SCSENO 1 -City
PROFESSIONAL LIABILITY
PECO11286208
03/31/2024
08/16/2023
of Santa Ana -
19795642.pdf
WORKERS COMPENSATION AND
SCSENOI - City
WCOI 1277908
04/01/2024
08/07/2023
of Santa Ana -
EMPLOYERS' LIABILITY
19795642.pdf
Thank you,