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02-22-2011 CC Rpt A05 COUNCIL AGENDA STAFF REPORT OIIY CLERK USE ONLY Meeting Date: February 22, 2011 RECEIVED alike Public Hearing: 0 VIII FEB 15 PM 3: 16 Discussion Item: ❑ -_` ` Consent Item: OFFICE O CITY CLERK CHINO HILLS February 15, 2011 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: AWARD A CONTRACT TO KOPPEL & GRUBER PUBLIC FINANCE FOR PROPOSITION 218 PROCEEDINGS RECOMMENDATION: 1. Approve an appropriations budget amendment in the amount of$47,900 to be allocated evenly to the Water Utility Fund and Sewer Utility Fund. 2. Direct staff to administer the Proposition 218 majority protest process for the proposed water, wastewater, and trash increases. 3. Authorize execution of a Professional Services Agreement with Koppel &Gruber Public Finance in an amount not to exceed $14,880 to prepare and conduct Proposition 218 mailings related to protest proceedings. BACKGROUND/ANALYSIS: The City of Chino Hills is seeking the professional services of a qualified consultant firm to assist the City with conducting the Proposition 218 majority protest process with regard to proposed increases to the City's water, wastewater, and trash rates. A detailed Request for Proposals (RFP)was prepared by City staff and released on October 1, 2010. A copy of the Request for Proposal is attached as Exhibit"A". Proposals were received from three (3) consulting firms. After reviewing each proposal, staff determined that Koppel & Gruber Public Finance was the most qualified consulting firm to prepare and conduct the Proposition 218 proceedings. A copy of Koppel & Gruber Public Finance firm's fee schedule and task breakdown is shown in Exhibit "B". The consultant fees do not include the mailing house costs for postage and printing. Notices will be mailed to the property owner and the rate payer. It is estimated that approximately 22,000 notices will be mailed, The estimated cost for printing of notices and protest ballots range between $.65 to $1.50 per piece depending on the use of color, black and white and number of items in the mailing. The mailing costs are projected not to exceed $33,000. AGENDA DATE: FEBRUARY 22, 2011 SUBJECT: AWARD A CONTRACT TO KOPPEL & GRUBER PUBLIC FINANCE FOR PROPOSITION 218 PROCEEDINGS PAGE TWO Proposition 218 Proposition 218 was approved by the voters of the State of California at the November 5, 1996, general election. Proposition 218 added Articles XIIC and Article XIIID to the California Constitution. Article XIIID requires that any agency imposing or increasing any property-related fee or charge must provide written notice to the record owner of each identified parcel upon which such fee or charge is to be imposed and must conduct a public hearing with respect thereto. The written notice must be sent to the property owners at least forty-five days prior to the public hearing, The proposed fee or charge may not be imposed or increased if a majority of property owners of the identified parcels file written protests against it prior to the close of the public hearing. In addition, Article XIIID includes a number of requirements applicable to existing fees and charges including provisions to the effect that (i) revenue derived from the fee or charge shall not exceed the funds required to provide the property-related service, (ii) such revenues shall not be used for any purpose other than that for which the fee or charge was imposed, (iii) the amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel and (iv) no such fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner or the property in question. Property-related fees and charges based on potential or future use of a service are not permitted, In July 2006, the California Supreme Court concluded in the Bighom case that a public agency's charges for water and wastewater delivery are"fees and charges"within the meaning of Article XIIID. This decision by the Supreme Court specifically overruled a prior California Appellate case involving the City of Los Angeles that held such charges were not subject to Article XIIID. The California Attorney General had also previously issued an opinion that water rates were not subject to Article XIIID. Proposed Increases The Water Rate Study was presented to the Public Works Commission for review and recommendation to the City Council. The rate study was conducted to determine the operating capital and cash reserve needs of the water system. Staff is anticipating the increase in water rates will be the recommendation in order to maintain a sufficient revenue stream to support operating and capital needs. The water rate adjustments are tentatively scheduled to be effective July 1, 2011. The Inland Empire Utilities Agency has adopted increases in treatment costs for wastewater to be effective July 1, 2011. The City has treated the wastewater treatment costs as a direct pass- through to our customers. In order for the City to pass-through the increases in wastewater treatment costs, it can only do so by way of Proposition 218 proceedings. AGENDA DATE: FEBRUARY 22, 2011 SUBJECT: AWARD A CONTRACT TO KOPPEL & GRUBER PUBLIC FINANCE FOR PROPOSITION 218 PROCEEDINGS PAGE THREE REVIEW BY OTHERS: This agenda item has been reviewed by the City Attorney and the Contract Compliance Officer. FISCAL IMPACT: Fiscal impact for mailing public hearing notices and protest proceedings is $47,900 to be funded by reserves of$23,950 from the Water Utility Fund and $23,950 from the Sewer Utility Fund. Respectfully submitted, Recommended by: ichael eAtri -,14"- feat,- lint-uittler" ichFigaytritity Manager Judy Rn.anEaster, Finance Director Attachments: Exhibit A— Copy of Request for Proposals Exhibit B — Fee Schedule and Scope of Work AGREEMENT NO. All- FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF CHINO HILLS AND KOPPEL & GRUBER PUBLIC FINANCE THIS AGREEMENT, made and entered into this 15th day of February 2011, between the CITY OF CHINO HILLS, a municipal corporation, hereinafter referred to as "City" and Koppel & Gruber Public Finance hereinafter referred to as "Consultant'. In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. SCOPE OF SERVICES. Consultant agrees to perform the services set forth in Exhibit A "SCOPE OF SERVICES" attached hereto and made a part hereof. Consultant shall submit its work to the City for its review after completing each phase of the project as described in Exhibit A, or when otherwise requested by the City. Consultant shall, at its own cost, make any revisions of its own work as required by the City and re-do, at its own cost, any work which the City finds unsatisfactory due to Consultant's or subcontractor's errors or omissions. Consultant represents and warrants that it has the qualifications, experience and facilities to properly perform said services in a thorough, competent and professional manner and shall, at all times during the term of this Agreement, have in full force and effect, all licenses required of it by law. Consultants shall begin its services under this Agreement on February 22, 2011. -1- 2. STATUS OF CONSULTANT. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant shall not disseminate any information or reports gathered or created pursuant to this Agreement without the prior written approval of City except information or reports required by government agencies to enable Consultant to perform its duties under this Agreement. 3, CONSULTANT'S KNOWLEDGE OF APPLICABLE LAWS. Consultant shall keep itself informed of applicable local, state and federal laws and regulations which may affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. Consultant shall observe and comply with all such laws and regulations affecting its employees. City and its officers and employees, shall not be liable at law or in equity as a result of any failure of Consultant to comply with this section. -2-- 4. PERSONNEL. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant's staff assigned to perform the services hereunder and shall obtain the approval of the City Manager of all proposed staff members performing services under this Agreement prior to any such performance. 5. COMPENSATION AND METHOD OF PAYMENT. Compensation to the Consultant shall be as set forth in Exhibit B attached hereto and made a part hereof. Payments shall be made within thirty (30) days after receipt of each invoice as to all undisputed fees. If the City disputes any of consultants fees it shall give written notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the invoice. 6. ADDITIONAL SERVICES OF CONSULTANT. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein or listed in Exhibit A, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services. 7. ASSIGNMENT, All services required hereunder shall be performed by Consultant, its employees or personnel under direct contract with Consultant. -3- Consultant shall not assign to any subcontractor the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without the prior written consent of City Manager. 8. FACILITIES AND RECORDS. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts therefrom as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. 9. TERMINATION OF AGREEMENT. This Agreement may be renewed annually, but will terminate on June 30, 2011, unless otherwise extended in advance and in writing by the City Manager. This Agreement may be terminated with or without cause by either party upon 30 days written notice. In -4- the event of such termination, Consultant shall be compensated for non-disputed fees under the terms of this Agreement up to the date of termination. 10, COOPERATION BY CITY. All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the work as outlined in the Scope of Services, shall be furnished to Consultant in every reasonable way to facilitate, without undue delay, the work to be performed under this Agreement. 11. OWNERSHIP OF DOCUMENTS. Upon satisfactory completion of, or in the event of termination, suspension or abandonment of, this Agreement, all original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall, become the sole property of City. With respect to computer files, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 12. RELEASE OF INFORMATION/CONFLICTS OF INTEREST. (a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization excepting that information which is a public record and subject to disclosure pursuant to the California Public -5- Records Act, Government Code § 6250, et seq. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. If Consultant or any of its officers, employees, consultants or subcontractors does voluntarily provide information in violation of this Agreement, City has the right to reimbursement and indemnity from Consultant for any damages caused by Consultant's conduct, including the City's attorney's fees. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. (b) Consultant covenants that neither they nor any officer or principal of their firm have any interest in, or shall they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subcontractor without the express written consent of the City Manager. Consultant further covenants that Consultant has not contracted with nor is performing any services directly or indirectly with any developer(s) and/or property owner(s) and/or firm(s) and/or partnerships owning property in the City or the study area and further covenants and agrees that Consultant and/or its subcontractors shall provide no service or enter into any agreement or agreements with any developer(s) and/or property owner(s) and/or firm(s) and/or partnerships owning property in the City or the study area prior to the completion of the work under this Agreement without the express written consent of the City Manager. 13. DEFAULT. In the event that Consultant is in default of any of the provisions of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work perfoniied after the date of default and can terminate this Agreement immediately by written notice to the Consultant. -7- 14. INDEMNIFICATION. (a) Consultant represents it is skilled in the professional calling necessary to perform the services and duties agreed to hereunder by Consultant, and City relies upon the skills and knowledge of Consultant. Consultant shall perform such services and duties consistent with the standards generally recognized as being employed by professionals performing similar service in the State of California. (b) Consultant is an independent contractor and shall have no authority to bind City nor to create or incur any obligation on behalf of or liability against City, whether by contract or otherwise, unless such authority is expressly conferred under this agreement or is otherwise expressly conferred in writing by City. City, its elected and appointed officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or to any other person for, and Consultant shall indemnify, defend, protect and hold harmless the Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which the Indemnitees may suffer or incur or to which the Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of or allegedly caused -8- by the performance or failure to perform by Consultant of Consultant's services under this agreement or the negligent or willful acts or omissions of Consultant, its agents, officers, directors or employees, in performing any of the services under- this agreement. If any action or proceeding is brought against the Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify the Indemnitees as above provided, Consultant, upon notice from the CITY, shall defend the Indemnitees at Consultant's expense by counsel acceptable to the City. The Indemnitees need not have first paid any of the matters as to which the Indemnitees are entitled in order to be so indemnified. The insurance required to be maintained by Consultant under paragraph 15 shall ensure Consultant's obligations under this paragraph 14(6), but the limits of such insurance shall not limit the liability of Consultant hereunder, The provisions of this paragraph 14(b) shall survive the expiration or earlier termination of this agreement. The Consultant's indemnification does not extend to Claims occurring as a result of the City's negligent or willful acts or omissions. 15. INSURANCE. A. Insurance Requirements. Consultant shall provide and maintain insurance acceptable to the City Attorney in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance -9- of the work hereunder by Consultant, its agents, representatives or employees. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Consultant shall provide the following scope and limits of insurance: (1) Minimum Scope of Insurance. Coverage shall be at least as broad as: (a) Insurance Services Office form Commercial General Liability coverage (Occurrence Form CG 0001). (b) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms subject to the written approval of the City. (c) Workers' Compensation insurance as required by the Labor Code of State of California and Employer's Liability insurance and covering all persons providing services on behalf of the Consultant and all risks to such persons under this Agreement. (d) Errors and omissions liability insurance appropriate to the Consultant's profession. (2) Minimum Limits of Insurance. Consultant shall maintain limits of insurance no less than: (a) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability -10- Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities related to this Agreement or the general aggregate limit shall be twice the required occurrence limit. (b) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (c) Workers' Compensation and Employer's Liability: Workers' Compensation as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. (d) Errors and Omissions Liability: $1,000,000 per claim. B Other Provisions. Insurance policies required by this Agreement shall contain the following provisions: (1) All Policies. Each insurance policy required by this paragraph 15 shall be endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or either party to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail, return receipt requested, has been given to the City. (2) General Liability and Automobile Liability Coverages. (a) City, its officers, officials, and employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities Consultant performs, products and completed operations of -11- Consultant; premises owned, occupied or used by Consultant, or automobiles owned, leased or hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, or employees. (b) Consultant's insurance coverage shall be primary insurance as respect to City, its officers, officials, employees and volunteers. Any insurance or self insurance maintained by City, its officers, officials, employees or volunteers shall apply in excess of, and not contribute with, Consultant's insurance. (c) Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (d) Any failure to comply with the reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. (3) Workers' Compensation and Employer's Liability Coverage. Unless the City Manager otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against City, its officers, officials, employees and agents for losses arising from work performed by Consultant for City. -12- C. Other Requirements. Consultant agrees to deposit with City, at or before the effective date of this contract, certificates of insurance necessary to satisfy City that the insurance provisions of this contract have been complied with. The City Attorney may require that Consultant furnish City with copies of original endorsements effecting coverage required by this Section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. City reserves the right to inspect complete, certified copies of all required insurance policies, at any time. (1) Consultant shall furnish certificates and endorsements from each subcontractor identical to those Consultant provides. (2) Any deductibles or self-insured retentions must be declared to and approved by City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. (3) The procuring of such required policy or policies of insurance shall not be construed to limit Consultant's liability hereunder nor to fulfill the indemnification provisions and requirements of this Agreement. 16. NONDISCRIMINATION/NONPREFERENTIAL TREATMENT STATEMENT. In performing this Agreement, the Parties shall not discriminate or -.13- grant preferential treatment on the basis of race, sex, color, age, religion, sexual orientation, disability, ethnicity, or national origin, and shall comply, to the fullest extent allowed by law, with all applicable local, state and federal laws relating to nondiscrimination, 17. UNAUTHORIZED ALIENS. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. & 1101, et seq.), as amended; and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this contract, and should the Federal Government impose sanctions against the City for such use of unauthorized aliens, Consultant hereby agrees to, and shall, reimburse City for the cost of all such sanctions imposed, together with any and all costs, including attorneys' fees, incurred by the City in connection therewith. 18. ENTIRE AGREEMENT. This Agreement is the complete, final, entire and exclusive expression of the Agreement between the parties hereto and supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representations by any party which are not embodied herein and that no other agreement, statement, or promise not contained in this Agreement shall be valid and binding, -14- 19. GOVERNING LAW. The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the San Bernardino County Superior Court. 20. ASSIGNMENT OR SUBSTITUTION. City has an interest in the qualifications of and capability of the persons and entities who will fulfill the duties and obligations imposed upon Consultant by this Agreement. In recognition of that interest, neither any complete nor partial assignment of this Agreement may be made by Consultant nor changed, substituted for, deleted, or added to without the prior written consent of City. Any attempted assignment or substitution shall be ineffective, null, and void, and constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including summary termination of this Agreement. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 21. MODIFICATION OF AGREEMENT. The terms of this Agreement can only be modified in writing approved by the City Council and the Consultant. The parties agree that this requirement for written modifications cannot be waived and any attempted waiver shall be void. 21 AUTHORITY TO EXECUTE. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she/they -15-- has/have the authority to execute this Agreement on behalf of his/her/their corporation and warrants and represents that he/she/they has/have the authority to bind Consultant to the performance of its obligations hereunder. 23, NOTICES. Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows: City. Attention: City Clerk City of Chino Hills 14000 City Center Drive Chino Hills, California 91709 Consultant. Attention: Lyn Gruber Koppel & Gruber Public Finance 334 Via Vera Cruz, Suite 256 San Marcos, CA 92078 The notices shall be deemed to have been given as of the date of personal service, or three (3) days after the date of deposit of the same in the custody of the United States Postal Service. 24. SEVERABILITY. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of the other provisions of this Agreement. -16- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. KOPPEL & GRUBER PUBLIC FINANCE By i.c Title P u n.^, na ? CITY OF CHINO HILLS By Michael S. Fleager. ' 'City Manager -17- EXHIBIT A CITY OF CHINO HILLS Request for Proposals (RFP) for PROPOSITION 218 NOTICING FOR WATER, SEWER AND TRASH FEE INCREASE Date: October 1, 2010 Department: Finance Proposal Due Date: October 22, 2010 Time: 4:00 P.M. Proposals must be submitted to the: City of Chino Hills City Clerk's Office 14000 City Center Drive Chino Hills, CA 91709 • Proposal Information — Format: Proposals will be received by the City of Chino Hills, hereinafter called the "City", at the office of the City Clerk, 14000 City Center Drive, Chino Hills, California 91709, until 4:00 p.m.,(October 22, 2010. Each Proposal must be submitted in a sealed envelope, addressed to the City at the above-referenced address. Each sealed envelope containing a Proposal must be plainly marked on the outside as "Proposal for: 'PROPOSITION 218 NOTICING FOR WATER, SEWER, AND TRASH FEE INCREASE ', and Proposer's name and address: if applicable. If forwarded by mail, the sealed envelope containing the Proposal must be enclosed in another envelope addressed to the City of Chino Hills, c\o City Clerk, 14000 City Center Drive, Chino Hills, California 91709. Submittal of fifteen copies of the proposal is required. Consultants fee schedule, reimbursable and overhead costs are to be submitted in a separate sealed envelope clearly marked "Cost Proposal" at the time of submission of the proposal. Copies of the Request for Proposals may be obtained at the Finance Department of the City of Chino Hills, 14000 City Center Drive, Chino Hills, California 91709. Questions regarding the Request for Proposal must be directed in writing to Penny Angel, Assistant Finance Director, (909) 364-2648, pangel@chinohills.org SECTION A The Proposal shall include, as a minimum (these are mandatory statementsl; 1. A statement that this RFP shall be incorporated in its entirety as a part of the Consultant's quote. 2. A Statement of Qualifications applicable to this project including the names, qualifications, and proposed duties of the Consultant's staff to be assigned to this project; a listing of recent similar projects completed including the names, titles, addresses, and telephone numbers of the appropriate persons which the City can contact, 3. The Consultant shall assign a responsible representative and an alternate to perform the assigned tasks. Both staff members shall be identified in the proposal. The Consultant's representative will be responsible for all duties from contract negotiations through project completion. If the primary representative is unable to continue with the project, then the alternate representative will become the primary representative. Any other changes in responsible representative must be approved, in advance, by the City. The City will have the right to reject other proposed changes in personnel and may consider any other changes in responsible personnel a breach of contract. 4. A statement that all charges for services will be a "Not-To-Exceed" fee, as submitted with and made part of said Consultant's quote. 5. A copy of the Consultant's hourly rate schedule and a written statement that said hourly rate schedule is part of the Consultant's quote for use in invoicing for progress payments and for extra work incurred that is not part of this RFP. 6. A written statement by the Consultant that all federal laws and regulations shall be adhered to notwithstanding any state or local laws and regulations. In case of conflict between federal, state, or local laws or regulations, the strictest shall be adhered to. 7. A written statement by the Consultant shall allow all authorized federal, state, county, and the City of Chino Hills officials' access to place of work, books, documents, papers, fiscal, payroll materials, and other relevant contract records pertinent to this project. All relevant records shall be retained for at least three years. 8. A written statement that the Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. 9. A written statement that the Consultant shall comply with the California Labor Code. Pursuant to said regulations entitled: Federal Labor Standards provisions; 2 Federal Prevailing Wage Decision; and State of California Prevailing Wage Rates, respectively. 10. A written statement that the Consultant shall comply with the Copeland Anti- kickback Act (18 USC 874 C) and the implementation regulation (29 CFR 3) issued pursuant thereto, and any amendments thereof. 11. A description of Consultant's approach to the work and a complete analysis of staff hours required of each individual to be assigned to the project. The estimated hours shall identify each task to be done and the assigned individual's level of effort. !SECTION B Descriotion/Backoround: The City of Chino Hills is soliciting services to comply with California Supreme Court decision applicable to notification requirements of Proposition 218 for proposed increase in water, sewer, and trash rates. This requires a Notice of Public Hearing and Rate Increase be sent to each property owner subject to the water, sewer, and trash fee to determine if a majority protest to the increase exists. The City seeks to retain a consultant to prepare and mail a notice and protest ballots (approximately 22,000) in compliance with Proposition 218. The City invites your organization to submit a written proposal to provide such services. Scone of Work: The following generally describes the consultant services required for the notice. 1. Consult with City staff to determine project timeline, protest ballot, and public hearing text. 2. Prepare a Notice of Public Hearing and Rate Increase in compliance with the requirements of Proposition 218. 3. Prepare, print, and mail the Notice to property owners subject to the proposed water, sewer, and trash increase rate. 4. Handle property owner phone call regarding the proposed rate increase and the Proposition 218 protest procedures. 5. Attend at least two Public Hearings and meetings (evenings) with the City Council and at least one Public Hearing and meeting (evening) with the Public Works Commission and offer testimony regarding the mailing of the Notice of Public Hearing and Rate Increase. 3 6, Prepare a water, sewer, and trash protest ballot. 7. Print and mail the water, sewer, and trash protest ballots to the property owners subject to the proposed water, sewer, and trash increased rates. (The Notice of Public Hearing will be mailed with the protest ballots.) 8. Receive and tabulate ballots. SECTION C SPECIAL TERMS AND CONDITIONS: Your proposal must include the following information: Qualifications 1. Experience of your firm in performing similar services, 2. Up to three references from agencies for which you have provided related services. 3. Resumes and responsibilities of the individuals who would be assigned to this project, including any sub-consultants. Work Program 1. Description of your approach to completing the work. 2. Any alternative approaches, and their relative advantages and disadvantages compared with your proposed approach. 3. Any other information that would assist us in making this contract award decision. Compensation 1. A separate enveloped shall be provided containing the cost proposal for the project. 2. Proposed compensation and payment scheduled tied to accomplishing key tasks. Proposal Length and Format 1. Proposal should not exceed 12 one-sided, letter-size pages, including attachments and supplemental materials. 4 2. The minimum font size is 11 point, with minimum left and right margins of one- inch, and top and bottom margins of 0/ inches. 3, Fifteen (15) copies of the proposal are to be provided. Communications: All requests for information must be in writing and received by October 25, 2010. A written response from the City's Assistant Finance Director will be provided. SECTION D Evaluation Criteria: A review committee will evaluate the information submitted. The evaluation will consider the following criteria when reviewing each proposal. a. Quality, clarity, and responsiveness of the proposal. b. Understanding of the work required by the City. c. Demonstrated competence and professional qualification necessary for successfully performing the work required by the City. d. Recent experience in successfully performing similar services. e. Proposed approach in completing the work. f. References. g. Background and related experiences of the specific individuals to be assigned to this project. h. Proposed compensation. As reflected above, contract award will not be based solely on proposed compensation, but on a combination of factors as determined to be in the interest of the City, After evaluating the proposals and discussing them further with the finalists or the tentatively selected Consultants, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. Proposal Retention and Award The City reserves the right to retain all proposals for a period of 120 days for examination and comparison. 5 Proposal Review and Award Schedule The following is an outline of the anticipated schedule for proposal review and contract award: Issue RFP October 1, 2010 Proposals deadline October 22, 2010 City interviews candidates (if necessary) Week of November 8, 2010 Complete written proposal evaluation December 15, 2010 Award contract February 22, 2011 All Hands Team Meeting at 10 A.M. at City Hall February 23, 2011 Completion of project (rates effective) July 1, 2011 The City of Chino Hills reserves the right to accept or reject any or all proposals or to waive any defects or irregularities in the proposals or selection process. Professional Services Agreement: The City has provided a copy of the Agreement for Professional Services. Please review this agreement and provide the City with a written statement of your firm's willingness to accept the terms of the agreement. Please specifically identify each and every term of the agreement which your firm is unwilling to accept and the reason therefore. Prevailina Wages: The Proposer agrees to abide by the requirements under Section 1773 of the Labor Code of the State of California for general prevailing wages where it is applicable. Insurance: 1. Insurance Requirements. Proposer shall provide and maintain insurance acceptable to the City Attorney in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Proposer, its agents, representatives, or employees. Insurance is to be placed with a current A.M. Best's rating of no less than A:VII. Proposer shall provide the following scope and limits of insurance: a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office form Commercial General Liability coverage (Occurrence Form CG 0001). 6 (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms subject to the written approval by the City. (3) Workers' Compensation insurance as required by the Labor Code of the State of California and Employer's Liability Insurance and covering all persons providing service on behalf of the Proposer and all risks to such persons under this Agreement. (4) Errors and Omissions liability insurance appropriate to the Proposer's profession. b. Minimum Limits of Insurance. Consultant shall maintain limits of insurance no less than: (1) General Liability; $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities related to this Agreement or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Worker's Compensation and Employer's Liability: Worker's Compensation as required by the Labor Code of the State of California and Employer's Liability limits of $1,000,000 per accident. (4) Errors and Omissions Liability: $1,000,000 per occurrence. 2. Other Provisions. Insurance policies required by this Agreement shall contain the following provisions: a. All Policies: Each insurance policy required by this paragraph shall be endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or either party to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail, return receipt requested, has been given to the City. b. General Liability and Automobile Liability Coverages: (1) City, its officers, officials, employees and volunteers are to be covered as additional insured as respects: liability arising out of activities Proposer performs, products and completed operations of Proposers; premises owned, leased or hired or borrowed by Proposer. The coverage shall contain no 7 special limitations on the scope of protection afforded to City, its officers, officials, employees, or volunteers. (2) Proposer's insurance coverage shall be primary insurance as respects to City, its officers, officials, employees or volunteers and shall apply in excess of, and not contribute with, Proposer's insurance. (3) Proposer's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (4) Any failure to comply with the reporting or other provisions of the policies including the breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, or volunteers. c. Worker's Compensation and Employer's Liability Coverage. Unless the City Manager otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and agents for losses arising from work performed by Consultant for City. 3. Other Requirements. Consultant agrees to deposit with City, at or before the effective date of this Agreement, certificates of insurance necessary to satisfy City that the insurance provisions of this Agreement have been complied with. The City Attorney may require the Proposer furnish the City with copies of original endorsements effecting coverage required by this Section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. City reserves the right to inspect complete, certified copies of all required copies of all required insurance policies, at any time. a. Proposer shall furnish certificates and endorsements from each subcontractor identical to those Proposer provides. b. Any deductibles or self-insured retention must be declared to and approved by City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City, its officers, officials, employees and volunteers; or the Proposer shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. c. The procuring of such required policy or policies of insurance shall not be construed to limit Proposer's liability hereunder to fulfill the indemnification provisions and requirements of this Agreement. 8 Subcontracting: The Proposer may utilize the services of specialty Sub-consultants on those parts of the Work that, under normal contracting practices, are performed by specialty Sub- consultants. Unless a specific Sub-consultant is listed by Proposer, Proposer is representing to City that Proposer has all appropriate licenses, certifications, and registrations to perform the work hereunder. After submission of his/her proposal, the Proposer shall not award Work to any unlisted Sub-consultant(s) without prior written approval of the City. The Proposer shall be fully responsible to the City for the performance of his/her Sub-consultants, and of persons either directly or indirectly employed by them. Nothing contained herein shall create any contractual relation between any Sub- consultant and the City. Should you have any questions regarding this Request for Proposals, please contact Penny Angel, Assistant Finance Director, (909) 364-2648, pangel@chinohills.orgi 9 EXHIBIT B TEE PROPOSAL K&G Public Finance will bill on a monthly basis based on hours performed on the project. Shown below is our proposed fee. TASK I FEE I Notice of Public Hearing and Proposed Rate Increase Services I $14,880.00 Expenses In addition to the project Services fee shown above are other expenses and printing and mailing costs. K&G Public Finance shall be reimbursed for other expenses including travel, photocopying, county data sources, postage (not including notice & ballot printing and postage), courier services, and overnight delivery at our cost not to exceed $500.00. We estimate the printing of notices and ballots to range between $0.65 - $1.50 per parcel depending on the use of color, black and white and number of items and pages in the mailing. (The cost for printing the 2007 notices was approximately $0.61 a piece) We will bill the City the actual cost of the printing and mailing with no additional mark up. Proposition 218 requires the notices be mailed by first class mail, postage will be calculated based on the number of notices actually mailed. Additional Services If authorized by the City, K&G Public Finance will provide additional services not included in the above scope of services at the rates provided below unless otherwise agreed upon between the City and K.&G Public Finance. TITLE RATE Principal I $180 Senior Associate E 130 Associate ( 95 Administrative Analyst I 65 Koppel&Gruber Public Finance 2 Fee Proposal to Provide Proposition 218 Rate Increase Services for The City of Chino Hills EXHIBIT B SCOPE OF SERVICES TO BE PROVIDED The following generally describes the consultant services required for the Notice. 1. Consult with City staff to determine project timeline, protest ballot, and public hearing text. 2. Prepare a Notice of Public Hearing and Rate Increase in compliance with the requirements of Proposition 218. 3. Prepare, print and mail the Notice to property owners subject to the proposed water, sewer, and trash increase rate. 4. Handle property owner phone calls regarding the proposed rate increase and the Proposition 218 protest procedures. 5, Attend at least two Public Hearings and meetings (evenings) with the City Council and offer testimony regarding the mailing of the Notice of Public Hearing and Rate Increase. 6. Prepare a water, sewer, and trash protest ballot. 7. Print and mail the water, sewer, and trash protest ballots to the property owners subject to the proposed water, sewer, and trash increased rates. (The Notice of Public Hearing will be mailed with the protest ballots.) 8. Receive and tabulate ballots.