HomeMy WebLinkAboutR-2013-146 Solid Waste Cost of Service Rate Study Agreement with Bell & Associates, Inc. RESOLUTION NO. R- 2013 -146
A RESOLUTION authorizing the City Manager to execute a Professional Services
Agreement with Bell & Associates, Inc in an amount not to exceed
$7,455.00 to develop and provide a Solid Waste Cost of Service Rate
Study
WHEREAS, the City of Yakima (City) provides the collection and disposal of
garbage and refuse waste for the health, safety and welfare of the community in accord
with applicable State and Local regulations; and
WHEREAS, the City desires consulting services to develop and provide a Cost of
Service Rate Study for its Solid Waste & Recycling Division to obtain a fair and accurate
assessment of the solid waste and recycling rate structure and charges and how it relates
to projected future financial needs and requirements; and
WHEREAS, the City maintains a roster of small works and consultants whose
statements of qualifications represent that they have the experience, expertise, and
equipment necessary to perform the services required by the City; and
WHEREAS, the City desires to retain Bell & Associates, Inc. based on the
consulting services required to evaluate its existing financial policies /practices, and
recommend alternatives that may further the City's goal in properly funding the Solids
Waste and Recycling Division; allowing the City to remain consistent with industry
practice; and,
WHEREAS, the City Council has determined that it is in the best interest of the
City to enter into a Professional Services Agreement with Bell & Associates, Inc. for such
expertise, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute a Professional Services
Agreement with Bell & Associates, Inc., in the amount not to exceed Seven Thousand Four
Hundred Fifty Five Dollars ($7,455.00) to develop and provide a Solid Waste Cost of Service
Rate Study, a copy of the Agreement with which Exhibit "A," "B" and "C" are attached hereto
and by reference made a part hereof
ADOPTED BY THE CITY COUNCIL this 19 day of November, 2013.
2;p (
Micah Cawley, ayor
1TTEST: 3- rA
Son' . Claar Tee, Cit :Clerks
A l 14,
October 23, 2013 Page 1
CONTRACT AGREEMENT
BETWEEN
Bell & Associates, Inc. ' AND , CITY OF YAKIMA
1628 NW 33` Way Solid Waste and Recycling Division
Camas, WA 98607 2301 Fruitvale Boulevard
Yakima, WA 98902
PROJECT: 2014 SOLID WASTE COST OF SERVICE RATE •
THIS AGREEMENT combines all understandings between Parties regarding professional services for
the Project named above and supersedes all prior proposals, quotations, solicitations, negotiations,
representations, agreements or understandings, whether written or oral.
The performance of the professional services herein described and authorized by the City of Yakima, as
well as payment for such services, shall be in accordance with the terms and conditions presented in this
Agreement and the following Sections and Exhibits which are attached and incorporated by reference
which, taken together, shall constitute the whole Agreement.
Section I - Relationship of the Parties
Section II - Contract Provisions
Exhibit A - Scope of Work and Task Plan
Exhibit B - Project Budget/Fee Schedule
Exhibit C - Study Schedule
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals this 5 day of
November, 2013.
APPROVED: APPROVED:
CITY OF YAKIMA BELL & ' - C IA ■ i c
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- ony O'R s, e, City Manager ell, ' rinc' g al
Date: 10 Date: 6 ' t — /3
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Sonya Cla . � Tee, City Clerk � %∎ V 0\y`_
CITY CONTRAC f NO
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City of Yakima
Solid Waste and Recycling Division
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SECTION I: RELATIONSHIP OF THE PARTIES
The City of Yakima ( "Client ") desires consulting services for a Solid Waste Cost of Service Rate Study.
In furtherance of the Project, the Client hereby contracts with Bell & Associates, Inc. to perform the
professional services described in Exhibit A of this Agreement. All services shall be performed under the
joint supervision of the Client's Representative, Loretta Zammarchi, or a designee or designees identified
in writing to Bell & Associates by the Client's Representative. 4
This Agreement shall be for the benefit of and be binding upon successors, assigns, and legal
representatives of each of the Parties hereto. Any assignment or transfer of an interest in this Agreement
by either Party without the written consent of the other shall be void.
SECTION II: CONTRACT PROVISIONS
1. Scope of Work: Bell & Associates, Inc. shall perform the service for the Client as defined in Exhibit
A, Scope of Work, which is attached hereto and hereby incorporated by this reference.
2. Time for Completion: The Scope of Work for the conduct of the study as set forth above is
anticipated to be completed by Bell & Associates, Inc., within a time frame approximating that shown
by the following schedule:
Notice to Proceed: On or before November 19, 2013
Completion of Draft Analysis: within 2 months of Notice to Proceed (NTP)
Presentations to Council: within 5 months of NTP
Completion of Project: On or before April 30, 2014
Bell & Associates, Inc. agrees to perform the work described in the Scope of Work according to the
contract schedule. Any delays shall be agreed upon by Bell and Associates, Inc. and Clientaprior to the
due date. Changes in the schedule caused by Client delays may require additional compensation and a
change order.
3. Payment: Bell & Associates, Inc. will be paid by the Client on a time and materials basis as outlined
below and in accordance with the standard billing rates attached hereto as Exhibit B. Bell & Associates,
Inc. agrees to perform the services as set forth in Exhibit A at a cost not to exceed Seven Thousand Four
Hundred Fifty Five Dollars ($7,455.). It is understood that Bell & Associates, Inc. will not exceed this
amount without the Client's prior written authorization.
Bell & Associates, Inc. shall submit to the Client an invoice each month for payment for work completed
through the accounting cut -off day of the previous month. Such invoices shall be for work performed and
costs incurred prior to the date of the invoice and not covered by previously submitted invoices. Bell &
Associates, Inc. shall submit with each invoice a summary of time expended on the work,for the current
billing period, copies of subconsultant invoices, and any other supporting materials determined by the
Client necessary to substantiate the costs incurred. Client will use its best efforts to pay such invoices
within thirty (30) days of receipt and upon approval of the work completed and amount billed. Client will
notify Bell & Associates, Inc. promptly if any problems are noted with the invoice. Client may question
any item in an invoice, noting to Bell .& Associates, Inc. the questionable item(s) and withholding
payment for such item(s). Bell & Associates, Inc. may resubmit such item(s) in a subsequent invoice
together with additional supporting information required.
Payment to Bell & Associates, Inc. for services set forth in Exhibit A shall be: an amount equal to Bell &
Associates, Inc.'s standard billing rates as set forth in Exhibit B multiplied by the actual hours worked.
Direct expenses will not be charged except as identified in Exhibit B. Payment shall be made monthly
upon receipt and approval of Bell & Associates, Inc'. s invoice.
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Payment for any work shall not constitute a waiver or release by Client of any claims, right, or remedy it
may have against the Bell & Associates, Inc. under this Agreement or by law, nor shall such payment
constitute a waiver, remission, or discharge by Client of any failure or fault of Bell & Associates, Inc. to
satisfactorily perform the PROJECT WORK as required under this Agreement.
4. Supplemental Agreements: Supplemental Agreements may be entered into upon mutual written
agreement that would increase or decrease the scope and associated costs and payment.
5. Work to be Accomplished: All work accomplished will be performed under the direction of the
Client Representative or his /her Designee.
6. Termination: This contract may be terminated by the Client by giving Bell & Associates, Inc. written
notice of such termination no fewer than fifteen (15) days in advance of the effective date of said
termination. Bell & Associates, Inc. shall be entitled to terminate this agreement only in the case of a
material breach by the Client, and upon failure of the Client to remedy said breach within fifteen (15)
days of written notice of the breach.
7. Indemnity: Bell & Associates, Inc. shall comply with all Federal Government, State and local laws
and ordinances applicable to the work to be done under this Agreement.
Bell & Associates, Inc. agrees to defend, indemnify, and hold harmless the Client, its elected
officials, agents, officers, employees, agents and volunteers (hereinafter "parties protected ") from (1)
claims, demands, liens, lawsuits, administrative and other proceedings,(including reasonable costs
and attorneys fees) and (2) judgments, awards, losses, liabilities, damages, penalties, fines, costs and
expenses of any kind claimed by third parties arising out of, or related to any death, injury, damage
or destruction to any person or any property to the extent caused by any negligent act, action, default,
error or omission or willful misconduct arising out of Bell & Associates, Inc.'s performance under
this Agreement. In the event that any lien is placed upon the Client's property or any of the Client's
officers, employees or agents as a result of the negligence or willful misconduct of Bell &
Associates, Inc., Bell & Associates, Inc. shall at once cause the same to be dissolved and discharged
by giving bond or otherwise.
(b) Client agrees to indemnify and hold Bell & Associates, Inc. harmless from loss, cost, or expense
of any kind claimed by third parties, including without limitation such loss, cost, or expense resulting
from injuries to persons or damages to property, caused solely by the negligence or willful misconduct of
the Client, its employees, or agents in connection with the performance of the Scope of Work.
(c) If the negligence or willful misconduct of both Bell & Associates, Inc. and the Client (or a person
identified above for whom each is liable) is a cause of such third party claim, the loss, cost, or expense
shall be shared between Bell & Associates, Inc. and the Client in proportion to their relative degrees of
negligence or willful misconduct and the right of indemnity will apply for such proportion.
(d) Nothing contained in this Section or this Agreement shall be construed to create a liability or a
right of indemnification in any third party.
8. All Work Produced is Property of the Client: The materials, computer programs, reports,
calculations, analyses, etc., generated by Bell & Associates, Inc. under this contract, including the final
report, shall become the property of the Client. The Client agrees that if it uses products prepared by
Bell & Associates, Inc. for purposes other than those intended in this agreement, it does so at its sole risk
and agrees to hold Bell & Associates harmless thereafter.
9. Assignment: The Contractor shall not assign or subcontract any portion of the contracted activities
without obtaining prior written approval from the Client.
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10. Integrated Agreement: This agreement together with attachments or addenda represents the entire
and integrated agreement between the Client and Bell & Associates, Inc. supersedes all prior negotiations,
representations, or agreements written or oral. This agreement may be amended by written instrument
signed by both the Client and Bell & Associates, Inc.
11. Independent Contractor: The parties intend that an independent Contractor /Client relationship will
be created by this agreement. No agent, employee, or representative of Bell & Associates, Inc. shall be
deemed to be an agent, employee, or representative of the Client for any purpose. Bell & Associates, Inc.
shall be solely responsible for all acts of its agents, employees, representatives, and subcontractors during
the performance of this contract.
12. Equal Opportunity: During the performance of this Agreement, Bell & Associates, Inc. and Bell &
Associates, Inc.'s subconsultants and subcontractors shall not discriminate in violation of any applicable
federal, state and/or local law or regulation on the basis of age, sex, race, creed, religion, color, national
origin, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual
orientation, and any other classification protected under federal, state, or local law. This provision shall
include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment,
advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and
the provision of services under this Agreement. Bell & Associates, Inc. agrees to comply with the
applicable provisions of State and Federal Equal Employment Opportunity and Nondiscrimination
statutes and regulations.
13. Notices: Notices to the Client shall be sent to the following address:
City of Yakima Solid Waste and Recycling Division
Attention: Loretta Zammarchi, Solid Waste Manager
2301 Fruitvale Boulevard
Yakima, WA 98902
509 576.6421
Notices to Bell & Associates shall be sent to the following address:
Bell & Associates, Inc.
Attention: Chris Bell, Principal
1628 NW 33r Way
Camas, WA 98607
360.326.8937
14. Insurance: At all times during performance of the Services, Bell & Associates, Inc. shall secure and
maintain in effect insurance to protect the Client and Bell & Associates, Inc. from and against all claims,
damages, losses, and expenses arising out of or resulting from the performance of this Contract. Bell &
Associates, Inc. shall provide and maintain in force insurance in limits no less than that stated below, as
applicable. The Client reserves the right to require higher limits should it deem it necessary in the best
interest of the public. If Bell & Associates, Inc. carries higher coverage limits than the limits stated
below, such higher limits shall be shown on the Certificate of Insurance and Endorsements and Bell &
Associates, Inc. shall be named as an additional insured for such higher limits.
14.1.1 Commercial General Liability Insurance. Before this Contract is fully executed by the
parties, Bell & Associates, Inc. shall provide the Client with a certificate of insurance as proof of
commercial liability insurance and commercial umbrella liability insurance with a total liability limit of
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the limits required in the policy, subject to minimum limits of One Million Dollars ($1,000,000) per
occurrence combined single limit bodily injury and property damage, and Two Million Dollars
($2,000,000.00) general aggregate. The certificate shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in effect. Said policy shall
be in effect for the duration of this Contract. The policy shall name the Client, its elected officials,
officers, agents, employees, and volunteers as additional insureds. The insured shall not cancel or change
the insurance without first giving the Client thirty (30) calendar days prior written notice. The insurance
shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in
the State of Washington.
14.1.2. Commercial Automobile Liability Insurance.
a. If Bell & Associates, Inc. owns any vehicles, before this Contract is fully executed by the parties,
Bell & Associates, Inc. shall provide the Client with a certificate of insurance as proof of automobile
liability insurance and personal umbrella liability insurance with a total liability limit of the limits
required in the policy, subject to minimum limits of One Million Dollars ($1,000,000) per occurrence
combined single limit bodily injury and property damage. Automobile liability will apply to "Any Auto"
and be shown on the certificate.
b. If Bell & Associates, Inc. does not own any vehicles, only "Non -owned and Hired Automobile
Liability" will be required and may be added to the commercial liability coverage at the same limits as
required in that section of this Contract, which is Section 10.1.1 entitled "Commercial General Liability
Insurance ".
c. Under either situation described above in Section 14.1.2.a. and Section 14.1.2.b., the required
certificate of insurance shall clearly state who the provider is, the coverage amount, the policy number,
and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration
of this Contract. The policy shall name the Client, its elected officials, officers, agents, employees, and
volunteers as additional insureds. The insured shall not cancel or change the insurance without first
giving the Client thirty (30) calendar days prior written notice. The insurance shall be with an insurance
company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington.
14.1.3. Statutory workers' compensation and employer's liability insurance as required by state
law.
14.1.4. Professional Liability Coverage. Before this Contract is fully executed by the parties,
Bell & Associates, Inc. shall provide the Client with a certificate of insurance as proof of professional
liability coverage with a total liability limit of the limits required in the policy, subject to minimum limits
of One Million Dollars ($1,000,000) per claim, and Two Million Dollars ($1,000,000) aggregate. The
certificate shall clearly state who the provider is, the coverage amount, the policy number, and when the
policy and provisions provided are in effect. Said policy shall be in effect for the duration of this
Contract. The insured shall not cancel or change the insurance without first giving the Client thirty (30)
calendar days prior written notice. The insurance shall be with an insurance company or companies rated
A -VII or higher in Best's Guide. If the policy is written on a claims made basis the coverage will continue
in force for an additional two years after the completion of this contract.
Failure of either or all of the additional insureds to report a claim under such insurance shall not prejudice
the rights of the Client, its officers, employees, agents, and representatives there under. The Client and
the Client's elected officials, officer's, principals, employees, representatives, and agents shall have no
obligation for payment of premiums because of being named as additional insureds under such insurance.
None of the policies issued pursuant to the requirements contained herein shall be canceled, allowed to
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expire, or changed in any manner that affects the rights of the Client until thirty (30) days after written
notice to the Client of such intended cancellation, expiration or change.
15. Jurisdiction and Venue: This Agreement shall be administered and interpreted under the laws of the
State of Washington. Jurisdiction of litigation arising from this Agreement shall be in Washington State.
If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null,
and void insofar as it conflicts with said laws, but the remainder of this Agreement shall be in full force
and effect. Venue for all disputes arising under this Agreement shall be Yakima County, State of
Washington.
16. Dispute Resolution: In the event that any dispute shall arise as to the interpretation of this
agreement, or in the event of a notice of default as to whether such default does constitute a breach of the
contract, and if the parties hereto cannot mutually settle such differences, then the parties shall first pursue
mediation as a means to resolve the dispute. If either of the afore mentioned methods are not successful
then any dispute relating to this Agreement shall be decided in the courts of Yakima County, in
accordance with the laws of Washington. If both parties consent in writing, other available means of
dispute resolution may be implemented.
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EXHIBIT A: SCOPE OF WORK
The following Scope of Work (SOW) identifies the activities that Bell & Associates will perform for the
Proj ect:
Rate Study Scope of Work
Task 1: Initial Data Request and Review
We will prepare an initial data request to identify specific information to be collected from the City prior
to our first meeting. This information will include the following: •
1. Year to date general ledger with line item detail by account
2. Current year budget and proposed next year's budget
3. Estimation of annual route hours / Actual number of payroll hours by staff
4. Billing reports necessary to identify customer counts by line of business
5. Schedule of all disposal invoices for solid waste (for tonnage and costs)
6. Schedules of all trucks and assets assigned to the Solid Waste Division
7. Lease and rental agreements for trucks and equipment (if applicable)
8. Amortization schedule of all debt instruments
Task 2: Review of Current Collection System and Rate Structure
Financial and operational data will be analyzed using the same methods for the financial and operational
reviews used to access the performance of private collection companies. The review checklist details
costs by operation and uses census data to determine operational efficiency. Results of the analysis will be
compared to private haulers, established industry benchmarks, and internal operational goals.
Task 3: Modeling of Rates
Our experience with the operational and economic aspects of solid waste collection is critical to the
design of a reliable and flexible model. We can modify existing rate models and financial plans, or create
new models, to implement the rate design. Information gathered in Tasks 1 and 2 are utilized in the Excel
based rate model with the following general structural components:
(1) Budget and capital plan information from 2014 Budget, proposed or approved capital costs, debt
service, and offsetting revenues from Washington Department of Ecology (if applicable), which
will be translated into:
(2) Revenue requirements, by operational area (e.g. waste collection, recycling, disposal, and general
program expenses). The revenue requirements will be allocated to:
(3) Service parameters (solid waste, recycling and yard debris collection, split by residential and
commercial). The service parameters will be derived from:
(4) Model census data such as customer counts, collection route hours, disposal tons, population
projections, and other information necessary to model rates.
(5) Rate construction, which pulls the relevant costs per service parameter to develop proposed rates
projected for the next six years.
3.1 Operating Forecast — Forecast ongoing operating & maintenance expense, debt service, and other
cash obligations of the utility over the study period. Incorporate economic assumptions,
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additional O &M expense, if any, resulting from the CIP, and /or other known changes in
operational requirements.
3.2 Revenue Needs Assessment — The revenue needs assessment identifies the total rate revenue to be
collected from customers. Incorporate results of Subtask 1.1 through 1.4 and develop alternative
operating cash flows for the solid waste division. Compare projected cash requirements against
projected revenue under existing rate levels to determine annual rate adjustments needed to
satisfy projected cash obligations. The proposed budget provides for up to three (3) alternative
scenarios.
3.3 Assess Utility Tax Application — Evaluate and calculate alternative approaches to applying the
City's current utility tax. Options include continuation of the practice of imbedding the costs in
the garbage rates or adding the tax on top of the water bills to show the components separately.
Task 4 — Meetings & Documentation
4.1 Staff Meetings — Prepare for and participate two (2) conference calls with Division staff to collect
data and review interim findings.
4.2 Presentations — Prepare materials for and attend a work session or City Council meetings to
present study results.
4.3 Reports — Prepare a written draft report that summarizes the findings and conclusions supported
by the information and data collected and compiled during the course of the project. The model
utilized to calculate the costs will be included in electronic format. This initial draft will be
prepared for review and comment by the City management. All changes approved by City
managers will be addresses and the second draft will be submitted to City staff for review.
4.4 Prepare a final project report. One (1) draft and one (1) final report will be submitted
electronically to the City. Based on the input from City managers, the Project Team will revise the
draft report for final submission. The report will detail the process, recommendations, and final
decisions.
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Exhibit B
Project Budget /Fee Schedule
Task Description Hours Labor Expenses Total
1 Initial Data Request 2 $270 $270
2 Kick -off Meeting /Review Current 6 $810 $810
System
3 EMIhrill.1 1 $2,700 1 1111, $2,700
4.3 Drafting and Submission of Rate Report 16 $2,160 $2,160
4.3 Update Draft Report ,_540
4.2 Present Report to the City Council & 6 $810 $165 $975
City Staff (attend two meetings)
Project Totals .54 $7,290 $165
The fees for this project are based on the estimated time to complete the project. This proposed fee is a
not to exceed fee based on the outlined work program. If the projects can be completed in less than our
estimates, then Bell & Associates will bill accordingly. If we find it will take considerably more time, due
to a change in scope, we will discuss any changes with City staff and will not proceed without prior
written authorization. Fees for the project are estimated at $7,455 (54hours x $135 per hour) plus $165 in
travel expenses. City will reimburse the consultant for any out of pocket expenses including mileage and
other reasonable expenses approved by the Solid Waste Manager. Unless otherwise agreed in writing,
fees will be billed monthly at the first of each month for the preceding month and will be payable within
30 days of the date of the invoice.
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EXHIBIT C: PROJECT SCHEDULE
Performance of the Scope of Work described in Exhibit A will begin immediately upon notice to proceed.
Major milestones are estimated as follows:
® Notice to Proceed (NTP): Expected mid - November 2014
® Review Draft Study Findings with Division Staff: Within 2 months of NTP (mid -
January)
o Submit Draft Report: Within 3 months of NTP (mid - February 2014)
i Presentations to City Council: Within 4 months of NTP (mid -March , 2014)
® Submit Final Report: Within 4.5 months of NTP (April 30, 2014)
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. '\
For Meeting of: 11/19/2013
ITEM TITLE: Resolution authorizing a Professional Services Agreement
with Bell & Associates, Inc. in an amount not to exceed
$7,455 to develop and provide a Solid Waste Cost of Service
Rate Study.
SUBMITTED BY: Scott Schafer, Acting Public Works Director
Loretta Zammarchi, Solid Waste & Recycling Manager, 576-
6421
SUMMARY EXPLANATION:
The City of Yakima (City) provides the collection and disposal of garbage and refuse waste for
the health, safety and welfare of the community in accord with applicable State and Local
regulations. To ensure a fair and accurate assessment of its solid waste and proposed
recycling rate structure and how it relates to projected future financial needs and requirements,
the City desires consulting services to develop and provide a Cost of Service Rate Study for its
Solid Waste & Recycling Division.
Bell & Associates, Inc. was selected based on the consulting services required in evaluating the
City's existing financial policies /practices in properly funding the Solids Waste and Recycling
Division.
The terms of the Agreement would be in an amount not to exceed $7,455. (See attached
Agreement with Exhibit "A," "B" and "C ")
Exhibit "A" of the Agreement describes the Scope of Work in more detail.
Exhibit "B" of the Agreement describes the Project Budget/Fee Schedule.
Exhibit "C" of the Agreement describes the Project Schedule.
Resolution: X Ordinance:
Other (Specify):
Contract: X Contract Term:
Start Date: 11/19/13 End Date: 4/30/14
Item Budgeted: Yes Amount: $7,455.00
Funding Source /Fiscal Refuse Operating Fund 471
Impact:
Strategic Priority: Public Trust and Accountability
Insurance Required? No
Mail to: Chris Bell, Principal, 1628NW 33rd Way, Camas, WA. 98607
Phone: (360)326 -8937
APPROVED FOR
SUBMITTAL: - City Manager
RECOMMENDATION:
Staff respectfully requests City Council approve the Resolution authorizing the City Manager to
execute the accompanying Professional Services Agreement with Bell & Associates, Inc.
ATTACHMENTS:
Description Upload Date Type
Resolution - Solid Waste Rate Study Bell & 10/29/2013 Resolution
Associates
Agreement - Solid Waste Rate Study Bell & 10/29/2013 Contract
Associates