HomeMy WebLinkAboutC32860 - Dvlpmnt of a Rcycl Fee Nexus StudyContract No. C32860
CITY OF PALM DESERT
SPECIAL PROGRAMS DEPARTMENT
STAFF REPORT
REQUEST
SUBMITTED BY:
_�
APPROVE CONTRACT WITH HF&H CONSULTANTS, LLC FOR THE
DEVELOPMENT OF A RECYCLE FEE NEXUS STUDY
Frankie Riddle, Director of Special Programs
APPLICANT: HF&H Consultants, LLC
19200 Von Karman Ave., #360
Irvine, CA 92612
DATE:
CONTENTS
Recommendation
June 13, 2013
1. Willdan Proposal
2. HF&H Proposal
By Minute Motion:
1. Authorize the City Manager to execute an Agreement with
for the development of a Recycle Fee Nexus Study;
2. Authorize expenditure of funds in the amount of $15,000
Account No. 236- 4195-454-3090; and
3. Approve a 20% contingency in the amount of $3,000.
Discussion
HF&H Consultants, LLC
from the Recycle Fund,
Over the past several years, the City has offset solid waste rate increases to residents of
Palm Desert through the reduction of the AB939 fee. As a result, the fee is currently $1.87
per ton and generates approximately $75,000 to $100,000 annually. However, the City
expends approximately $750,000 to $1,000,000 each year to cover various recycle
programs currently in place for Palm Desert residents and businesses, as well as some
street improvements. With the passage of AB341, commercial businesses that generate
four cubic yards or more of trash are now mandated to implement a recycling program. In
addition, AB341 increased the State of California's diversion rate to 75% by 2020 and
passed various other recycle components on to local jurisdictions to undertake.
Given the above, the City is reviewing all of its options to continue to generate necessary
funding to ensure that these programs and future programs are available. Staff is not
proposing to implement a fee until the Franchise Contract expires in May 2015. At that
time, staff would negotiate with Burrtec to implement any new Recycle Fee through that
process. As such, staff is proposing to have a Recycle Fee Nexus Study completed with
Contract No. C32860
STAFF REPORT
CONSULTING SERVICES FOR DEVELOPMENT OF RECYCLE NEXUS STUDY
JUNE 13, 2013
PAGE 2
the thought that the fee generated from this study would potentially replace the AB939 fee
when it is eliminated (reduced to zero). Below are the consultants that were contacted and
the response from each:
Company
Willdan Financial Services
27368 Via lndustria, #110
Temecula, CA 92590-4856
HF&t�`_Consultants;. LLC
19200 Von,.Karman Ave.; #360
Irvine; CA 92612
MSV1/. Consultants . .
27393 Ynez Rd:; 259
Temecula, CA 92591
Cost
$24, 250
$15,000
No Response
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After reviewing the two proposals received, staff recommends that City Council approve a
contract with HF&H Consultants, LLC for consulting services relative to the development of
a Recycle Nexus Study.
Fiscal Analvsis
Funds are available within the Recycle Fund, Account No. 236-4195-454-3090. There will
be no impact to the City's General Fund.
Submitted By:
CITY COUNCILACT[ON
Fra ie F�� dle, Director of Special Programs APPROVED Q/
RCCEIVED
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Pa S. Gibson, Director of Finance
Approval:
Wohlmuth, City Manager
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Original on Fi1e with City Clcr�k';; i) '�icc
Riddle, Frankie
From: Laith Ezzet (lezzet@hfh-consultants.com]
Sent: Monday, June 03, 2013 3:19 PM
To: Riddle, Frankie
Subject: RE: Quote to Calculate Recycle Fee
Hi Frankie:
Our proposal is consistent with all of the items required to perform the City Recycle Fee study to replace the existing AB
939 fee with a new City Recycle Fee, and we plan to perform all of the applicable tasks to achieve the study objective.
Laith Ezzet, CMC
Senior Vice President
HF&H Consultants, LLC — Managing Tomorrow's Resources Today
19200 Von Karman Avenue, Suite 360, Irvine, CA 92612
Phone: (949) 251-8902
Fax: (949) 251-9741
E-mail: lezzet@hfh-consultants.com
HF&H Consultants is a Green Business
Please consider the environment before printing this e-mail
__ _____-----_ .------___...- --- - _ _ - - - --
From: friddle@cityofpalmdesert.org [mailto:friddle@cityofpalmdesert.org]
Sent: Monday, June 03, 2013 3:02 PM
To: Laith Ezzet
Subject: RE: Quote to Calculate Recycle Fee
Hi Laith,
I need to confirm some items to ensure that the scope of work is comparable to the others the City has
received. Following are some items that I need to know are or are not included in your scope of work for the $15,000:
Rate Study Project Analysis:
Details of program revenue requirements
Equitable allocation of program costs
Development of alternatives for funding program obligations
Development of aiternatives for funding and financing program capital needs.
Will engagement consist of the following:
Collection and review of relevant solid waste system information and data;
Recyciing program rate analysis establishing rate structures and levels consistent with the City's goals;
Review of program costs associated with the programs to be funded from the proposed recycling fee;
Development of a multi-year financial management plan, including projected revenues and expenses;
Development of rate schedules;
Development of a comprehensive rate study report; and
Presentation of findings.
Also, will the plan inc(ude comprehensive financiai analysis, which incorporates such revenue requirements as operating
expenses, minor capital expenses, and cash-funded major capital expenditures. Will the culmination of the revenue
requirements analysis, include a capital project financing plan and the cost-of-service allocations, will there be
Riddle, Frankie
From: Laith Ezzet [lezzet@hfh-consultants.com]
Sent: Friday, May 31, 2013 5:11 PM
To: Riddle, Frankie
Cc: Debbie Morris
Subject: Quote to Calculate Recycle Fee
Hi Frankie:
Thank you for contacting me on May 28, 2013 regarding a quote for a nexus study to calculate a City Recycle Fee. I
understand the City Recycle Fee would be similar to an AB 939 fee, to fund the city's cost of managing and monitoring its
solid waste and recycling programs. I understand that:
1) The existing AB 939 fee is being phased out as it has been reduced as part of a rate stabilization effort for the
past few years to absorb contractor cost increases and therefore reduce rate increases to customers.
2) The City's spends approximately $1 million per year out of AB 939 funds, and the current AB 939 fund balance is
approximately $4 million.
3) The City anticipates that there will be new recycling initiatives and related program costs in the years ahead.
4) The existing solid waste agreement expires in May 2015, and the City would like to know the amount of a
proposed Recycle Fee prior to negotiation of a new solid waste agreement.
Scope of Work
In order to achieve the City's study objectives, we would:
1. Gather historical information from City staff regarding the city's AB 939 fund balance, revenues, and
expenditures for the past three years.
2. Gather from City staff projected costs of new recycling initiatives and programs to be funded in the next five
years.
3. Gather information from the City regarding the AB 939 fund balance as of June 30, 2103, and projected AB 939
fee revenue for the next five years (or until the AB 939 fee is completely phased out, whichever is sooner).
4. Calculate the annual revenue requirement for a new Recycle Fee based on revenue and expenditure projections
for the next five years.
5. Calculate the amount of a Recycle Fee for the first year, that would be adjusted by the CPI thereafter, to achieve
the revenue requirement. The Recycle Fee will be based on total gross receipts or tons disposed, and the City
will select the desired approach prior to calculation of the fee.
6. We will prepare a brief report documenting our calculation of the fee and related assumptions.
We will perform the above scope of work for a fixed fee of $15,000 to be billed upon delivery of the client report.
Please call me at 949-251-8902 if you have any questions.
Laith Ezzet, CMC
Senior Vice President
HF&H Consultants, LLC — Managing Tomorrow's Resources Today
19200 Von Karman Avenue, Suite 360, Irvine, CA 92612
Phone: (949) 251-8902
Fax: (949) 251-9741
E-mail: lezzet(c�hfh-consultants.com
HF&H Consultants is a Green Business
Contract No. C32860
AGREEMENT BETWEEN HF8�H CONSULTANTS, LLC AND
THE CITY OF PALM DESERT FOR PROFESSIONAL SERVICES
This Agreement is made on the 13th day of June , 2013, by and
between: Citv of Palm Desert (Client) and HF&H Consultants, LLC (HF&H).
WITNESSETH
That for the considerations set forth below, the parties agree as follows:
1. Description of Services:
The purpose of the engagement is to calculate a new City Recycle Fee that would be
similar to the existing AB 939 fee that is being phased out, in order to fund the city's cost of
managing and monitoring its solid waste and recycling programs. The existing AB 939 fee has
been reduced as part of a rate stabilization effort for the past few years to absorb contractor
cost increases and therefore reduce rate increases to customers. The City's spends
approximately $1 million per year out of AB 939 funds, and the current AB 939 fund balance is
approximately $4 million. The City anticipates that there will be new recycling initiatives and
related program costs in the years ahead. The existing solid waste agreement expires in May
2015, and the City would like to know the amount of a proposed Recycle Fee prior to
establishment of a new solid waste agreement.
The specific tasks to be performed by HF&H include the following:
1. Gather historical information from City staff and other sources if necessary regarding
the city's AB 939 fund balance, revenues, and expenditures for the past three years.
2. Gather from City staff projected costs of new recycling initiatives and programs to be
funded in the next five years.
3. Gather information from the City and other sources if necessary regarding the AB 939
fund balance as of June 30, 2103, and projected AB 939 fee revenue for the next five
years (or until the AB 939 fee is completely phased out, whichever is sooner).
4. Calculate the annual revenue requirement for a new Recycle Fee based on revenue
and expenditure projections for the next five years.
5. Development of a multi-year financial management plan, including projected revenues
and expenses;
6. Calculate the amount of a Recycle Fee for the first year, that would be adjusted by the
PPI thereafter, to achieve the revenue requirement. The Recycle Fee will be based on
total gross receipts or tons disposed, and the City will select the desired approach prior
to calculation of the fee.
7. Development of rate schedules
8. Equitable allocation of program costs
9. Development of alternatives for funding program obligations
10. Development of alternatives for funding and financing program capital needs.
11. Other work that may be necessary to complete Recycle Fee Nexus Study
12. Development of a comprehensive rate (Nexus) study report including calculation of the
fee and related assumptions and present findings.
2. Period of Performance: Until completion of Recycle Fee Nexus Study
3. Compensation: Fixed fee of $15,000 to be billed upon delivery of report.
Contract No. C32860
AGREEMENT BETWEEN HF&H CONSULTANTS AND
CITY OF PALM DESERT — RECYCLE FEE NEXUS STUDY
PAG E 2
4. General Conditions:
a. HF&H is acting as an independent contractor in perForming the work required by
this Agreement and is not an agent, servant, or employee of Client.
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b. Client shall generally cooperate with HF&H in the performance of its obligations
under this Agreement and shall, at a minimum, perForm those particular tasks
described in Section 1 above.
c. The work papers and other documentation developed pursuant to this
Agreement are instruments of service and, as such, are and remain the
property of HF&H. All work products prepared by HF&H under this Agreement
shall become the property of Client; however, HF&H may retain, reproduce and
distribute copies of all such work products.
d. The parties hereto shall maintain in full force and effect comprehensive general
liability insurance with coverage limits which are reasonable in light of the work
to be undertaken, and workers' compensation insurance as required by law.
HF&H's liability for services to be rendered under this Agreement shall be
limited to the amount covered by HF&H's liability insurance then in effect.
In the event that legai action is instituted to enforce any of the terms of this
Agreement, the party which does not prevail shall pay the legal expenses of the
prevailing party, including attorney's fees.
Neither party shall assign or sublet any portion of this Agreement without the
written consent of the other party.
h. This Agreement may be terminated by either party upon fifteen (15) days'
notice, in writing, to the other party. Upon termination, HF&H shall prepare and
submit a final invoice for services rendered to the date of termination together
with any termination expenses incurred.
This writing constitutes the entire Agreement between the parties relating to the
services to be perFormed hereunder. No modification hereof shall be effective
unless and until such modification is evidenced by writing and signed by both
parties to this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their duly authorized officers on the date first mentioned above.
HF&H CONSULTANTS, LLC:
SIGN:
NAME:
TITLE:
DATE:
Laith Ezzet
Senior Vice President
CLIENT: City of Palm Desert
SIGN:
NAME:
TITLE:
DATE:
May 23, 2013
Ms. Frankie Riddle
Director of Special Programs
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
WI LLDAN
Financial Services
extending
your
reach
Via Email:
friddle@citvofpalmdesert.org
Re: Letter Proposal to Conduct a Recycling Fee Nexus Study for the City of Palm Desert
Dear Ms. Riddle:
Pursuant to our recent conference call, the following outlines our proposed scope of services, staffing, and
fee to conduct a Recycling Fee Nexus Study for the City of Palm Desert (City).
Project Understanding
The City is pursuing the preparation of a comprehensive rate study report for its solid waste recycling
program with the broad goal and objective of adequately funding various recycling programs through the
application of an equitable, cost -based fee. Specifically, the City is seeking professional consulting services,
which will meet this goal within the following, more specific rate study project analyses:
• Detailing program revenue requirements,
• Equitable allocation of program costs,
• Development of alternatives for funding program obligations, and
• Development of alternatives for funding and financing program capital needs.
The result of these analyses will be a comprehensive financial management plan with alternatives for up
to the next ten (10) fiscal years and rate schedules for a 3 to 5-year period. This financial management
plan will include anticipated rate adjustments for each fiscal year, as well as specific recommendations
of policies and practices that will enhance the recycling program's fiscal strength.
As part of this analysis, Willdan will develop a comprehensive financial analysis, which incorporates such
revenue requirements as operating expenses, minor capital expenses, and cash -funded major capital
expenditures. The culmination of the revenue requirements analysis, which will include a capital project
financing plan and the cost -of -service allocations, will be alternative rate plans that will provide
sufficient revenue to meet the ongoing funding needs of the recycling program, while recovering costs
in a fair and equitable manner.
During this project, we will utilize our Microsoft Excel -based model as a comprehensive financial tool
that allows planning and evaluation of variable inputs and assumptions, thereby achieving the goal of
creating a thorough analysis of revenue requirements. These analyses are then seamlessly integrated
with the rate development component of the model to demonstrate and project various rate design
alternatives.
Based on our current understanding of the City's goals and objectives, Willdan envisions that this
engagement will consist of the following components:
• Collection and review of relevant solid waste system information and data;
• Recycling program rate analyses establishing rate structures and levels consistent with the City's goals;
• Review of program costs associated with the programs to be funded from the proposed recycling fee;
• Development of a multi -year financial management plan, including projected revenues and expenses;
• Development of rate schedules;
• Development of a comprehensive rate study report; and
• Presentation of findings.
Engineering and Planning I Energy Efficiency and Sustainability 1 Financial and Economic Consulting 1 National Preparedness and Interoperab;lity
951.587.3500 1800.755.6864 I fax: 951.587.3510 1 27368 Via Industria, Suite 110, Temecula, California 92590.4856 l www.willdan.com
Ms. Frankie Riddle
May 23, 2013
Letter Proposal to Conduct a Recycling Fee Nexus Study
Work Plan
WI LLDAN l
Financial Services
The specific activities associated with the study's development are outlined below. The following
activities are based on Willdan's current understanding of the services requested by the City and are
subject to revision, based on further discussion.
Task 1:
Summary of Tasks — Recycling Fee Nexus Study
Project Initiation and Management
Purpose:
Description:
To identify Project Team (representatives of the City and Willdan); assign specific
responsibilities; identify project objectives; and establish project scope, schedule,
milestones, and communication channels.
With the City's concurrence, Willdan will finalize the scope of work; participate in a
"kick-off" meeting; and establish protocol, assignments, responsibilities, and
schedules.
Subtask la:
Obtain and Assess Necessary Data
Purpose: To collect data and information necessary to conduct the required analyses.
Willdan will develop a written data request identifying the operational and
Description: financial data that will be needed in the preparation of this study. The types of data
to be requested will include, but are not limited to:
■ List and description of the recycling and other solid waste programs to be
included in the study;
■ Copy of the solid waste hauler's contract with the City;
■ Historic customer billing information;
• Annual operating budget, including any anticipated capital expenditures, for
those programs and services to be funded by the proposed fee;
Existing City ordinances and financial policies;
• Historical customer billing data in a form to be specified by Willdan and
agreed to by the City; and
• Other related information including existing and anticipated policies that
would be useful to the study.
The initial written data request will be submitted within one (1) week after
receiving notice to proceed on the project. Upon receiving the City's response(s)
to the initial data request, Willdan will review, compile any questions or secondary
data requirements, and be prepared to discuss the collected information during
the project kick-off meeting.
Willdan recognizes that some of the requested information will be "off -the -shelf"
and some of it may not be readily available to the City or that the information may
not be in the format requested. Willdan will work with City personnel to minimize
the burden of data collection, and develop acceptable/reasonable proxies for
certain data whenever necessary.
Filename: Palm Desert Recycling Fee Study May 2013_7490.docx
Page 12
Ms. Frankie Riddle
May 23, 2013
Letter Proposal to Conduct a Recycling Fee Nexus Study
WI LLDAN
Financial Services
Summary of Tasks — Recycling Fee Nexus Study
Subtask 1b: Conduct Kick -Off Meeting/Conference Call
Purpose:
Description:
To establish City goals and objectives for the provision of recycling services and
proposed fee, and confirm understanding and expectations of project processes and
deliverables.
Willdan will meet with the City staff to discuss the project and to clearly identify
issues, goals, and objectives. It is during this process that Willdan will endeavor to
gain a clear understanding of the City's current system, operations, specific areas
of concern, and faced challenges. The information and insight gained during this
process will be utilized during the implementation of the study to make certain the
City's objectives are met.
As part of this task, remaining questions regarding the initial data request will be
resolved.
Subtask lc:
Establish Communication Channels
Purpose:
Description:
To establish a communication process that will serve to enhance the effective
implementation of this engagement.
It is vital to the effective completion of this project that Willdan and City staff
maintains lines of communication. The City and Willdan will identify primary
contacts for both the project team and the City, and establish protocol for the
exchange of information and the resolution of issues that develop in the normal
course of this engagement. To promote effective communication among the
project team members and the City, and to facilitate the successful completion of
this project, it is proposed that Willdan will:
• Schedule and participate in periodic conference calls to discuss project
issues, schedule, and budget;
• Prepare brief monthly summaries of project status to accompany Willdan's
invoices; and
• Be readily available for other communication(s), as needed.
Task 2: Develop Cost -of -Service Study and Revenue Requirements Analysis
Purpose:
Description:
To develop recycling fees consistent with the City's goals and objectives that
equitably allocate program expenditures to various customer and service
classifications, and develop unit costs that reflects the cost to provide service to
each classification.
Willdan will allocate projected fiscal year (Test Year) recycling program net revenue
requirements to the appropriate customer or service classification and will conduct
a detailed, line -by-line analysis of program expenses to determine the most
appropriate means of functionalizing, classifying, and allocating costs. Using the
allocated cost of service, rates, and charges will be developed that will recover
program revenue requirements including operating and maintenance expenses,
anticipated capital needs, and other miscellaneous program expenditures.
Filename: Palm Desert Recycling Fee Study May 2013_7490.docx Page 3
Ms. Frankie Riddle
May 23, 2013
Letter Proposal to Conduct a Recycling Fee Nexus Study
WILLDAN
Financial Services
Summary of Tasks — Recycling Fee Nexus Study
Subtask 2a: Determination of Revenue Requirements
Purpose:
Description:
To reasonably identify recycling program(s) revenue requirements.
Willdan will work with the City to develop reasonable Test Year revenue
requirements for the recycling program(s), which includes operating and
non -operating expenses that are expected to be incurred by the City. Revenue
requirements are defined as: "The amount of revenues required to meet operation
and maintenance (O&M) and other program costs, as well as capital expenditures
associated with the provision of recycling services."
In order to develop the revenue requirements for this project, Willdan will review
the City's annual operating budget, including capital expenditures. In addition,
Willdan will seek input from the City regarding historical and projected customer
growth. As required, we will work with the City to include the cost of operating and
administering up to three related programs in the revenue requirements; for
example, a food waste program. If there are more programs that the City wishes to
evaluate and consider for inclusion, there may be additional effort associated with
that. We will confirm and discuss this with the City before proceeding with work on
additional programs.
Subtask 2b: Functionalization and Classification of Revenue Requirements
Purpose:
Description:
To appropriately classify program revenue requirements, and assist in the
development of the estimate of cost -of -service levels.
For the purposes of this study, Willdan will classify costs utilizing a methodology
that is congruent with industry standards.
Subtask 2c:
Allocation of Revenue Requirements
Purpose:
Description:
To appropriately allocate revenue requirements to various rate components.
Willdan will develop allocation factors for various customer classes. Customer
related costs will be allocated among the classes, based on customer generation
characteristics.
Subtask 2d: Development of Rate Design and Associated Multi -year Rate Schedules
Purpose:
Description:
To develop alternative rate structures and rate designs for City consideration, which
reflect the cost of service, and satisfactorily and equitably recover program revenue
requirements.
The Willdan team will develop proposed rate alternatives, which cover a 3-year
period, based on the allocated cost of service, while taking into consideration the
City's goals and objectives for recovering revenue requirements. Such proposed
rates will be simple to understand and implement, and meet overall City goals.
Filename: Palm Desert Recycling Fee Study May 2013_7490.docx
Page 1 4
Ms. Frankie Riddle
May 23, 2013
Letter Proposal to Conduct a Recycling Fee Nexus Study
W I LL_DAN
Financial Services
Task 3:
Summary of Tasks — Recycling Fee Nexus Study
Development of Financial Plan
(Conducted concurrently with Task 2)
Purpose:
Description:
To provide the City with a detailed financing plan or "blueprint," with full sources
and uses analysis for the forecast period; this will demonstrate the ability to fund
future program requirements with existing and projected program resources.
Willdan will develop a financial model that will project the future financial
performance of the recycling program, based on various assumptions. This model
will produce the projected operating results and cash flow for the forecast period.
This financial model will determine projected revenues; operating and
maintenance expenses; capital expenditures, and their respective funding sources;
and resulting cash balances for each year of the projection period.
The resulting model will allow the City to test the financial impact of any dataset or
assumption and will make it possible to match funding requirements with available
revenue sources. The proposed model will be designed to be flexible enough to
accommodate various alternative scenarios.
The model will allow the City to determine the optimum rate path for balancing the
financial health of the recycling program against political and other considerations.
The model will be PC -based using Microsoft Excel and, if the City requests, can be
adapted for City use; and provided to the City at project's completion.
Task 4: Development of Summary Report
Purpose:
Description:
To provide the City with a comprehensive summary of Willdan's findings and
recommendations.
Willdan will prepare a summary document presenting the findings of the analyses
performed in Tasks 1 through 3. This report will include:
• A brief description of the methodologies used to develop recommended rates
for the Test Year(s);
• The methods utilized to project program expenses and revenues through the
multi -year forecast period;
• The results of the multi -year financial forecast alternatives, including: a multi-
year financial management plan and rate schedules;
• Detailed data and calculations which support the summary findings; and
• Recommendations to the City regarding rates, charges, and (as relevant) other
financial issues.
In addition, Willdan will make note of observations made during the course of this
engagement that may be of interest to the City.
Willdan will deliver a preliminary draft of the report to the City. The City will then be
responsible for distributing the document to key members. Additionally, the City will
collect comments from appropriate personnel; consolidate these comments in to a
single, marked -up copy; and return it for consideration and incorporation. Willdan
will collaborate with key project members regarding possible revisions to the
preliminary draft, and then prepare and submit a final report.
Filename: Palm Desert Recycling Fee Study May 2013_7490.docx Page 1 5
Ms. Frankie Riddle
May 23, 2013
Letter Proposal to Conduct a Recycling Fee Nexus Study
W I LLDAN
Financial Services
Summary of Tasks — Recycling Fee Nexus Study
Task 5: Participation in Meetings / Presentation of Findings (Optional)
Purpose:
Description:
To meet with the City to discuss preliminary findings, and present to the City and
key stakeholders the results of the study and the recommendation for going
forward.
At certain points during the project, Willdan will conduct two interactive
conference calls or meetings with the City project team to discuss preliminary
findings and agree on direction for the final report. Willdan will also be available to
meet with City staff and individual Council members, as requested. The schedule,
scope, and cost of any such meetings will be separately determined from this
proposal.
Willdan will be available to the City to present and discuss findings and
recommendations of this report. At the City's discretion, Willdan will participate in
a public presentation. If requested by the City, Willdan will be available to
participate in additional presentations. The schedule, scope, and cost of any
presentations will be separately determined from this proposal.
Professional Fees
On the basis of the scope described herein, Willdan's total labor and expense billings will not exceed $24,250,
as set forth in the below table. Based on actual incurred effort, each task's budgeted amount may increase.
Willdan will not, however, exceed the estimated total labor and expense billing amount without first
obtaining the City's prior written authorization.
The estimated professional fees are based on City's data being provided in a form/format that facilitates the
analyses preparation described in our scope. Should development of the data supplied by the City require
effort over and above the intended scope, Willdan will immediately notify the City.
Task
Description
1 Project Initiation and Management
2 Develop Cost -of -Service Study and Revenue Requirements
Analysis
3 Development of 7-year Financial Plan
4 Development of Summary Report 37 5,500
5 Participation in Meetings/Presentation of Findings (Optional)
Subtotal of Estimated Professional Hours and Fees
Estimated Project Expenses
Hours
10
80
Amount
50
177
Total Estimated Professional Fees and Expenses
$ 1,500
9,750
7,500
$24,250
$ 24,250
Filename: Palm Desert Recycling Fee Study May 2013_7490.docx
Page 16
Ms. Frankie Riddle
May 23, 2013
Letter Proposal to Conduct a Recycling Fee Nexus Study
LL..DAN
Financial Services
Hourly Rates
Additional services may be authorized by the City and will be billed at our then -current hourly overhead
consulting rates. Our current hourly rates are:
Willdan Financial Services'
Hourly Rate Schedule
Position
Group Manager
Principal Consultant/Managing Principal
Senior Project Manager
Project Manager
Senior Project Analyst
Senior Analyst
Analyst
Assistant Analyst
Hourly Rate
$ 210
200
165
145
130
120
100
Willdan appreciates this opportunity to continue to serve the City of Palm Desert. If you have any
questions regarding this proposal, please contact me directly at (951) 587-3528; I may also be reached
via email at cfisher@willdan.com.
Sincerely,
Willdan Financial Services
Chris Fisher, Group Manager
Financial Consulting Services
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