02-032 Hilton Farnkopf & Hobson, LLC_"~
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C~PEF~TIN{~
AGREE~;MENT ,~j;~- No ~~~~
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CITY OF CIUPERTINO ~ / P~~~« ~~R~$
/ /~ 10300 Torre Avenue
~, (~ ' J Cupertino, CA 95014 F
'~ ~ (408) 777-3200 '
BY THIS AGREEMENT, made`and entered into on the 3rd
by and between the CITY OF CUPERTINO (Hereinafter referred to ors CITY) and
Name (1) Hilton Farnkopf & Hobson, LLC _ (2)
Address 22885 SW Erio Place City Tual~itin, OR Zip 97062 Phone (503) 612-9955
(Hereinafter referred as CONTRACTOR), in consideration of their mratual covenants, the parties hereto agree as follows:
CONTRACTOR shall provide or furnish the following specified services and/or materials:
See Exhibit "A"
EXHIBITS: The following attached exhibits hereby are made part of this Agreement:
Exhibit "A" & "B"
TERMS: The services and/or materials furnished under this AgreemE~nt shall commence on April 5, 2002
and shall be completed before August 1, 2002
COMPENSATION: For the full performance of this Agreement, CITY shall pay CONTRACTOR:
Not to exceed $20,000.00 See exhibit "I3"
California Labor Code, Section 1771 requires the payment of prevailing wages to all workers employed on a Public Works contract in
excess of $1,000.00.
GENERAL TERMS AND CONDITIONS
Hold Harmless: Contractor agrees to save and hold harmless the City, its officers, agents and employees from any and all damage and
liability, including all costs of defending any claim, caused by or arising out of the performance of this Agreement. City shall not
be liable for acts of Contractor in performing services described herein.
Insurance: Should the City require evidence of insurability, Contract~~r shall file with City a Certificate of Insurance before commencing
any services under this Agreement. Said Certificate shall be subject to the approval of City's Director of Administrative Services.
Non-Discrimination: No discrimination shall be made in the employment of persons under this Agreement because of the race, color,
national origin, ancestry, religion or sex of such person.
Interest of Contractor: It is understood and agreed that this Agreement is not a contract of employment in the sense that the
relationship of master and servant exists between City and undersigned. At all times, Contractor shall be deemed to be an independent
contractor and Contractor is not authorized to bind the City to any contracts or other obligations in executing this agreement. Contractor
certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of City.
Changes: This Agreement shall not be assigned or transferred without the written consent of the City. No changes or variations of any
kind are authorized without the written consent of the City.
CONTRACT CO-ORDINATOR and representative for CITY shall be:
NAME Lavenia PZillar
day of April , 20 02 ,
DEPARTMENT Public WOrks
This Agreement shall become effective upon its execution by CITY, in witness thereof, the parties have executed this
Agreement the day and year first written above.
CONTRACTOR:
C-1TY OF CUPERTINO:
Title ~r_ ~, ~. Title Environmental Pro rams ana er
~oc,.Sp.>.:.#
APPROVALS P, j ,~
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EXPENDITURE DISTRIBUTION
A N H AD
E/ ACCOUNT NUMBER AMOUNT
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Il
CIT C K ~ D TE
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$20, 000.00
White: Cit Clerk ~ Green: Finance Yellow: Contractor `
y Receiving Gold: Department
EXHIBIT "A"
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HILTON FARNKOPF & HOBSON, LLC
"~~~~ Advisory Services to
_~. _ Municipal Management
22885 SW Erio Place
Tualatin, OR 97062
Telephone: 503/612-9955
Fax: 503/885-1375
March 12, 2002
Lavenia Millar
Environmental Programs Manager
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Proposal to Evahiate LAGCo's
Weekly, Single-Stream, Automated Recycling Collection Proposal
Dear Lavenia:
San Francixo
Newport Beach
Sacramento
Portland
Hilton Farnkopf & Hobson, LLC is pleased to present this proposal to assist the City of
Cupertino (City) evaluate a proposal from Los Altos Garbage Company (LAGCo) to
provide weekly, single-stream, automated recycling collection from City residents. This
proposal provides a general approach and fee range for City budget purposes. When
LAGCo submits a specific proposal, we will be :happy to prepare a specific scope of work,
schedule and not-to-exceed fee estimate.
Approach
We understand that LAGCo plans to submit a proposal to the City to convert the current
single-family, bi-weekly, 2-bin recyclables collection to a weekly, automated 96-gallon cart
collection system. The yard trimmings collection program will also be converted from bi-
weekly to weekly collection. Given that approximately S years remains under the current
agreement with LAGCo, this proposal is timely to allow amortization of any new capital
(carts and collection vehicles) purchased for the new program.
Based on our experience reviewing similar prop~~sals presented to other cities through
competitive procurements (summarized below), the City should anticipate that the
automated collection system will result in cost s;~vings from more efficient collection, lower
workers' compensation insurance costs and reduced disposal cost, offset in part by the
._. capital cost of the automated carts and additional vehicles.
We will evaluate LAGCo's proposal for competitiveness with similar proposals submitted
by Norcal and other haulers in recent competitive procurements. Specifically, we will
compare LAGCo's assumptions regarding collection productivity (accounts served per route
day), participation and tonnage, and capital and l~perating costs, including one-time start-up
recycled ~~~ paper
=~<~ HILTON FARNKOPF & HOBSON LLC
Lavenia Millar
March 12, 2002
Page 2
costs (e.g., cart assembly and delivery, public education material). We will prepare a report
comparing these factors to similar proposals from other haulers in other cities and identify
areas for the City to pursue negotiations with LAGCo. We could also assist the City in its
negotiations with LAGCo in a number of ways, from developing the format of LAGCo's
proposal to ensure that it meets the City's needs, to evaluating revised proposals that they
submit, to direct participation in negotiating meetings.
Estimated Fees
We typically bill our clients for the actual hours worked by the assigned staff at their
standard hourly rate. The total project fee will be dependent upon the approved scope of
work and subject to a contract with the City. For budget purposes, the City should
anticipate that fees for this project could range from $10,000 for a comparative analysis and
report to $20,000 for a report and assistance with negotiations.
Relevant Experience
We have recently evaluated competitive proposals for automated collection of single-stream
recyclables for the cities of Livermore and Rohnert Park in the Bay Area, the City of
Gridley in Central California, and the City of West Linn in Oregon. Thus, we have current
information regarding the costs associated with transitioning from source separated bin
collection systems to single-stream automated cart collection systems. We have also
recently assisted numerous agencies in contract negotiations for new programs or revisions
to existing programs, including the West Valley Cities (Campbell, Monte Sereno, Los Gatos
and Saratoga), and the cities of Milpitas, Alameda, Piedmont, and Fresno.
We appreciate the opportunity to provide this proposal to you. If you have any questions
regarding our proposal, please call.
Very truly yours,
HILTON FARNKOPF & HOBSON, LLC
~~-~ .~ w....
L S oc tt Hobson
Sr. Vice President
recycle0 ~~ DaDer
EXHIBIT "B"
HILTON FARNKOP]E & HOBSON, LLC
STANDARD HOURLY RATES AivD BILLING ARRANGEMENTS)
(Effective January 1, 2002)
Professional Fees
Hourly rates for professional and administr~itive personnel are as follows:
Position
President
Senior Vice President & Vice President
Senior Manager
Senior Associate
Associate
Administrative Staff
Rate
$225
$200
$165
$155 - $165
$110 - $135
$70 - $75
Direct Expenses
Standard charges for common direct expenses are as follows:
Automobile Travel
Document Reproduction (over 25 pages per run)
Facsimile
Telephone
Public Conveyances
Postage
Overnight Mail and Couriers
0.365 cents per mile
15 cents per page
No charge
No charge
Actual
Actual
Actual
~ Litigation Support and Expert Witness Services care not covered by this schedule of fees and
expenses.
Billing Policies
Our policy is to bill for our services and direct expenses based on the standard hourly
rates of the staff member assigned, multiplied by the time required to perform the
client-related tasks, plus the subcontractor services as described above. In
implementing this policy we adhere to the following practices:
We round to the nearest one-half hour (e.g., if two hours and 50 minutes are
spent on a task, it is recorded as three hours, if two hours and 10 minutes are
spent on a task, it is recorded as two hours). A minimum charge of one-half hour
is charged for any client work performed in a day.
We attempt to schedule travel time before and after normal work hours and we
do not bill for this time. If travel occurs during normal work hours and we can
use public conveyances, we attempt to use the time productively for the benefit
of the client or for another client and this time is billed to the appropriate client.
If we must travel during business hours and cannot use the time productively or
use a public conveyance, we bill the time to the client on whose behalf we are
traveling.
• Because public meetings (e.g., Board of Supervisors, City Council, and Board of
Directors meetings) generally occur after business hours and are not conducted
in accordance with strict schedules, our standard policy is to bill a minimum
two-hour charge.
• We do not mark up out-of-pocket expenses, however, we may charge
administrative or professional time related to the provision of the goods and
services associated with these charges. Costs for outside consultants and
subcontractors are billed at actual cost plus a 15 percent administrative fee.
• Mileage fees are based on the round-trip distance from the point of origin.
• If a client's change to a previously scheduled meeting results in penalties being
assessed by a third party (e.g., airline cancellation fee), then the client will bear
the cost of these penalties.
While no minimum fee for a consulting engagement has been established, it is unlikely
(given the nature of our services) that we can gain an understanding of a client's
particular requirement, identify alternatives, and recommend a solution in less than
twenty-four hours.
Hilton Farnkopf F~ Hobson, LLC 2
Insurance
We maintain the following policies of insur~~nce with carriers doing business in
California:
• Comprehensive General Liability Insurance ($1,000,000)
• Workers' Compensation ($1,000,000)
• Professional Liability Insurance ($1,01)0,000)
All costs incurred in complying with special insurance, licensing, or permit
requirements, including but not limited to naming client as an additional insured and
waiver of subrogation, become the responsibility of the client and are not included in
the fees for services or direct charges but arE~ billed in addition to the contract at cost,
plus any professional or administrative fees.
Invoices and Payment for Services
Our time reporting and billing system has cE~rtain standard formats that are designed to
provide our clients with a detailed invoice of the time and charges associated with their
engagement. (We typically discuss these with our clients at our kick-off meeting.) We
are also pleased to provide our clients with ~i custom invoice format but we will have to
bill the client for any additional costs associ~~ted with their unique requirements.
Billings for professional services and charge;~ are submitted every month, in order that
our clients can more closely monitor our sex^~ices. A late fee of one and one-half percent
per month is applied to balances unpaid aftE~r thirty (30) days.
Hilton Farnkopf ~ Hobson, LLC 3