Advancing intelligent waste management solutions

REQUEST FOR QUALIFICATIONS

FOR A PERFORMANCE AND FINANCIAL AUDIT

SPOKANE REGIONAL SOLID WASTE SYSTEM

PART I.  INTRODUCTION

1.1    PURPOSE

The Spokane Regional Solid Waste System (System), a department of the City of Spokane, is seeking the services of a qualified firm to conduct a performance and financial audit on the System.  The overall goal of this performance and financial audit is to identify opportunities that will improve the System’s efficiency and effectiveness as well as its accountability to the City of Spokane, Spokane County, and the Regional Cities.

1.2       BACKGROUND

The City of Spokane manages two separate departments (and affiliated enterprise funds) dealing with the management of municipal solid waste. The Solid Waste Management Department (Solid Waste Management) is responsible for the collection of solid waste generated within the City of Spokane. The Spokane Regional Solid Waste System (System) was created in 1988 through an interlocal agreement between the City of Spokane and Spokane County to provide for solid waste disposal services for waste collected within the City of Spokane and the unincorporated areas of the County. Subsequently, all the regional cities within Spokane County and Fairchild Air Force Base joined the System,

Under the interlocal agreement between the City of Spokane and Spokane County, the System is owned and managed by the City of Spokane. As provided for in the interlocal agreement, there exists a policy Liaison Board comprised of elected officials from the City of Spokane, Spokane County and the Regional Cities to create a forum for discussion concerning the waste to energy facility.

Major decisions including tipping fee adjustments and expenditures over $1 million dollars require approval of both the Spokane City Council and Spokane County.

The System operates as a department of the City of Spokane's government under provisions of a City Ordinance.  It is under the general direction of a director, who is appointed by the Mayor.  The director is responsible for System operations. The City Council approves the System's budget, sets rates, approves financing, and other items outlined in the City Municipal Code.  The System has 8 full-time equivalent (FTE) employees.

The service area of the System (Service Area) encompasses the entire County.  The principal facilities of the System include an 800-ton-per-day, mass-burn waste-to-energy facility, the Northside Regional Landfill, two Solid Waste transfer stations, three recycling centers and household hazardous waste facilities, the use of non-system landfills to dispose of by-pass waste and non-processible waste, and the use of a private contractor for composting certain yard and garden debris. The waste to energy facility is operated by a private contractor. The Northside Regional Landfill, the transfer stations, recycling centers and household hazardous waste facilities, as well as the scale systems and residential tipping floor at the waste to energy facility, are operated by Solid Waste Management on behalf of the System, These operations are funded through interfund transfers from the System to Solid Waste Management. Solid Waste Management has approximately 187 FTE employees, approximately 89 of whom perform solid waste collection work, and 98 of whom perform work on behalf of the System, operating System facilities.

The County Flow Control Ordinance (85-0395, as amended) requires that the solid waste generated within the unincorporated county be delivered to the System facilities for disposal.   Individual interlocal agreements with all incorporated municipalities and Fairchild Air Force Base require solid waste they generate also be delivered to System facilities for disposal.

1.3       DEFINITIONS

Definitions are for the purpose of this RFQ/P include:

System - The System is the Spokane Regional Solid Waste System, a department of the City of Spokane, a Washington State municipal corporation that is issuing this RFQ/P.           

Consultant - Individual or company whose proposal has been accepted by the City and is awarded a fully executed, written contract.

Proposal – A formal offer submitted in response to this solicitation.

Proposer – Individual or company submitting a Proposal in order to attain a contract with the City

Request for Qualifications and Proposals (RFQ/P) – Formal procurement document in which a service or need is identified but no specific method to achieve it has been chosen.  The purpose of an RFQ/P is to permit the consultant community to submit their qualifications and to suggest various approaches to meet the need identified.

1.4       CONTRACTING WITH CURRENT OR FORMER CITY EMPLOYEES

Specific restrictions apply to contracting with current or former City officers and employees pursuant to the Code of Ethics in Chapter 1.04 of the Spokane Municipal Code.  Proposers should familiarize themselves with the requirements prior to submitting a proposal that includes current or former City officers or employees.

PART II.  SCOPE OF SERVICES

2.1    OVERVIEW OF THE WORK                     

    Scope of Work

The work performed in this audit will be done under an Oversight Committee comprised of a subcommittee of the Regional Solid Waste Liaison Board selected by the Chair and composed of one elected official each from the City of Spokane, City of Spokane Valley, Spokane County, and other regional cities.  The Oversight Committee will define goals and objectives for the audit, and review the draft audit report.

In addition, there will be a core Technical Work Group comprised of staff from the System, City of Spokane, Spokane County, Spokane Valley, and other regional cities that have expertise in the financial and operational aspects of the System.  The Technical Work Group will interface with the consultant throughout the audit to provide information and detailed guidance on the progress of the work.

The scope of work for this audit includes at least the following:

1.  Incorporating generally accepted accounting principles and following Governmental Accounting Standards Board pronouncements, develop a performance and financial audit work plan and review the plan with the project’s Oversight Committee and Technical Work Group before proceeding with the audit

2.  Review the System’s maintenance and operations and any other major services and programs funded by the System.

3.  Review the System’s capital project planning and implementation.

4.  Compare the System’s performance to the goals and objectives established by the Spokane County Comprehensive Solid Waste Management Plan.  Recommend program and staffing needs to reach any unmet goals and objectives.

5.  Review and assess the overall financial performance of the System’s Waste-to-Energy facility compared to similar facilities.

6a.  Review and assess general budgeting and accounting practices and procedures, and how budget forecasts relate to actual expenditures.

b.  Review and assess how the City allocates and accounts for Citywide and departmental costs between the City’s non-System and System services and programs.  Develop recommendations on whether and how the City should change those allocations. 

7.  Review the rate setting and revenue sharing processes and methodologies and determine if they are consistent with the Interlocal Cooperation Agreement and rate setting best practices.  Develop recommendations on whether and how the City should change those processes and methodologies.

8.  Conduct a benchmarking survey of at least three comparable jurisdictions to compare the System’s operations, staffing, and costs and make recommendations of any industry best practices that can be applied to the System’s operations, including subsequent program efficiencies, savings, or costs in meeting those best practice

9.  Review the flow of information and communication to and from the System, stakeholders and the public.  Develop recommendations on whether and how the System could change procedures to better communicate and distribute information.  

10. Review and assess the overall regional program and administrative services and performance provided by the System compared to similar solid waste systems.

11. Based upon the audit findings, identify any clarifications or recommended changes that should be made to the management of the System within the parameters of the City and County Interlocal Cooperation Agreement.  Make recommendations of efficiencies, savings, or costs in implementing those changes.

12. Prepare a draft report for review and provide thirty bound copies.

13. Make one presentation on the report to each of the following: Spokane County, City of Spokane, Liaison Board and the Solid Waste Advisory Committee (SWAC).

14. Revise the draft report based on review comments from Spokane County, City of Spokane, Liaison Board, and SWAC, and provide thirty bound copies and one electronic copy of the final report.

PART III.  GENERAL INFORMATION

3.1    RFQ/P COORDINATOR

The RFQ/P Coordinator is the sole point of contact in the City for this procurement. All communication between the Consultant and the City upon receipt of this RFQ/P shall be with the RFQ/P Coordinator, as follows:

Any other communication will be considered unofficial and non-binding on the City.  Consultants are to rely on written statements issued by the RFQ/P Coordinator.  Communication directed to parties other than the RFQ/P Coordinator may result in disqualification of the Consultant.

3.2    ESTIMATED SCHEDULE OF PROCUREMENT ACTIVITIES

The City reserves the right to revise the above schedule.

3.3       SUBMISSION OF PROPOSALS

A.    PREPARATION OF ENVELOPES

Place each copy of the Proposal in a separate sealed envelope.  On the front of each envelope clearly note if it contains the original or a copy and place the following information:

         "SEALED PROPOSAL - IMPORTANT"

RFQ/P – SPOKANE REGIONAL SOLID WASTE SYSTEM PERFORMANCE AND FINANCIAL AUDIT

         DUE 7/21/2008 - 1:00 P.M.

      COMPANY NAME

  C.   DUE DATE

It is the responsibility of the Proposer to be sure the Proposals are sent sufficiently ahead of time to be received no later than 1:00 PM local time on MONDAY, JULY 21, 2008.

Proposers mailing Proposals should allow normal mail delivery time to ensure timely receipt of their proposals.  The City reserves the right to not consider Proposals received late

Sealed Proposals will be publicly acknowledged at 1:15 PM on the due date in the City of Spokane City Hall Council Chambers, 808 West Spokane Falls Blvd, Spokane WA 99201.

3.4    PROPRIETARY INFORMATION/PUBLIC DISCLOSURE

Materials submitted in response to this competitive procurement shall become the property of the City.

All received Proposals shall remain confidential until the award of contract recommendation has been filed with the City Clerk for City Council action.  Thereafter, the Proposals shall be deemed public records as defined in RCW 42.17.250 to 42.17.340, “Public Records.”

Any information in the Proposal that the Consultant desires to claim as proprietary and exempt from disclosure under the provisions of state law shall be clearly designated.  Each page claimed to be exempt from disclosure must be clearly identified by the word “Confidential” printed on it.  Marking the entire Proposal exempt from disclosure will not be honored.

The City will consider a Proposer’s request for exemption from disclosure; however, the City will make a decision predicated upon state law and regulations.  If any information is marked as proprietary in the Proposal, it will not be made available until the affected Proposer has been given an opportunity to seek a court injunction against the requested disclosure. 

All requests for information should be directed to the RFQ/P Coordinator.

3.5    REVISIONS TO THE RFQ/P

In the event it becomes necessary to revise any part of this RFQ/P, addenda will be provided to all who receive the RFQ/P.  For this purpose, pertinent information shall be provided as an addendum to the RFQ/P.

The City also reserves the right to cancel or to reissue the RFQ/P in whole or in part, prior to the final award of a contract 

3.6    MINORITY & WOMEN-OWNED BUSINESS PARTICIPATION

The City encourages participation in all of its contracts by firms certified by the Washington State Office of Minority and Women’s Business Enterprises (OMWBE).  Proposers may contact OMWBE at 360/753-9693 to obtain information on certified firms.

3.7    ACCEPTANCE PERIOD

Proposals must provide sixty (60) days for acceptance by the City from the due date for receipt of Proposals.  Acceptance period may be extended by mutual consent.

3.8    RESPONSIVENESS

The Proposer is specifically notified that failure to comply with any part of the RFQ/P may result in rejection of the Proposal as non-responsive.

The City also reserves the right, however, at its sole discretion to waive minor administrative irregularities.

3.9    MOST FAVORABLE TERM

The City reserves the right to make an award without further discussion of the Proposal submitted.  Therefore, the Proposal should be submitted initially on the most favorable terms which the Consultant can propose.  The City reserves the right to contact a Proposer for clarification of its Proposal.

3.10  COSTS TO PROPOSE

The City will not be liable for any costs incurred by the Proposer in preparation of a Proposal submitted in response to this RFQ/P, in conduct of a presentation, or any other activities related to responding to this RFQ/P.

3.11  NO OBLIGATION TO CONTRACT

This RFQ/P does not obligate the City to contract for services specified herein.

3.12  REJECTION OF PROPOSALS

The City reserves the right at its sole discretion to reject any and all Proposals received without penalty and to not issue a contract as a result of this RFQ/P.

PART IV. PROPOSAL AND CONTENT

4.1  PREPARATION OF PROPOSAL

Proposals shall be in the following standardized format to facilitate evaluation of their comparative merits.  Proposals shall include the sections indicated below.  Proposals shall be typed.

                Letter of Submittal

1) Project Approach

2) Project Team

3) Experience

4) Project Schedule

5) Project Cost

4.2  LETTER OF SUBMITTAL

The Letter of Submittal shall be signed and dated by a person authorized to legally bind the Consultant to a contractual relationship; e.g., the president or executive director if a corporation, the managing partner if a partnership, or the proprietor if a sole proprietorship.  Along with introductory remarks, the Letter of Submittal is to include the following information about the Consultant and any proposed subcontractors:

1.Name, address, principal place of business, telephone number, and fax number/e-mail address of legal entity or individual with whom contract would be written.

2.Legal status of the Consultant (sole proprietorship, partnership, corporation, etc.). 

3.Location of the facility from which the Consultant would operate.

4.Identify any current or former City employees employed by or on the firm’s governing board as of the date of the proposal or during the previous twelve (12) months.

5.Acknowledgement that the Consultant will comply with all terms and conditions set forth in the Request for Proposals, unless otherwise agreed by the City.

PART V.  PROPOSAL EVALUATION

5.1   EVALUATION PROCEDURE

Responsive Proposals will be evaluated in accordance with the stated in this solicitation and any addenda issued.  Evaluation of Proposals shall be accomplished by a Selection Committee as described below.

The City, at its sole discretion, may elect to select the top-scoring firms as finalists for an oral presentation.

The RFQ/P Coordinator may contact the Consultant for clarification of any portion of the Consultant’s proposal.

5.2  SELECTION COMMITTEE

The Selection Committee for this project will be comprised of five members, one staff member each from the City of Spokane, Spokane County, Spokane Valley, the other regional cities, and one member chosen by the other four members of the selection committee. The committee members will rank each completed proposal based on the criteria outlined below. The Committee will recommend selection of the most highly qualified firm to the Director of the Spokane Regional Solid Waste System.

5.3   PROPOSAL EVALUATION

Submittals will be evaluated and ranked based on the following criteria:

a)      Project Approach

a)      Understanding of the scope of project

b)      Description of approach to project

c)      Ability to organize and accomplish project of this type

b)      Project Team

a)      Project team clearly identified and available for the project

b)      Education and qualifications of the project team

c)      Project team encompasses all necessary disciplines and skills to perform project scope

d)      Location of team members

c)      Previous Experience

a)      Experience with this type of project

b)      Demonstrated record of keeping costs within budgets

d)      Project Schedule

a)      Detailed schedule that indicates all necessary task and completion dates

b)      Project team/availability can realistically meet schedule

e)      Project Cost

a)      Detailed estimate of hours of effort by task

b)      Proposed billing rates for assigned individuals

c)      Total project cost

5.4    ORAL PRESENTATIONS MAY BE REQUIRED

Written submittals and oral presentations, if considered necessary, will be utilized in selecting the winning Proposal.  The City, at its sole discretion, may elect to select the top scoring finalists from the written evaluation for an oral presentation and final determination of contract award.  Should the City elect to hold oral presentations, it will contact the top-scoring firm(s) to schedule a date, time and location.  Commitments made by the Consultant at the oral interview, if any, will be considered binding.

5.5    AWARD OF CONTRACT

         This RFQ/P does not obligate the City to award a contract.

The City of Spokane reserves the option to split or make the award of this contract in any manner most advantageous for the City at its sole and exclusive discretion.  More than one (1) contract may be awarded.

Award of contract, when made, will be to the Proposer whose Proposal is the most favorable to the City, taking into consideration negotiated price and RFQ/P evaluation factors.  The City Council shall make the award of contract.  Unsuccessful Proposers will not automatically be notified of Proposal results.

5.6    DEBRIEFING OF UNSUCCESSFUL PROPOSERS

Upon request, a debriefing conference will be scheduled with an unsuccessful Proposer.  Discussion will be limited to a critique of the requesting Consultant’s Proposal.   Comparisons between Proposals or evaluations of the other Proposals will not be allowed.  Debriefing conferences may be conducted in person or on the telephone.

5.7    PROTEST PROCEDURE

Following evaluation, a recommendation for award shall be submitted to the City Council.  Award of contract, if made, shall be by the City Council in open meeting.  Proposers wishing to protest the award of the contract must make their protests before the City Council at the award hearing.

              PART VI.  CONTRACT TERMS AND REQUIREMENTS

6.1    CONTRACT TERM

The contract term is for a one-year period beginning upon Council approval, estimated to begin August, 2008. Contract renewals or extensions, if any, shall be at the sole discretion of the City. The contract may be extended for two (2) additional one-year contract periods, subject to mutual agreement, with the total contract period not to exceed three (3) years.

6.2    CITY OF SPOKANE BUSINESS LICENSE

Persons / firms doing business in the City or with the City must have a valid City of Spokane business license.  Questions may be directed to the Taxes and Licenses Division at (509) 625-6070.

6.3    ANTI‑KICKBACK

No officer or employee of the City of Spokane, having the power or duty to perform an official act or action related to this contract shall have or acquire any interest in the contract, or have solicited, accepted or granted a present or future gift, favor, service or other thing of value from or to any person involved in the contract.

6.4    DISPUTES

This contract shall be performed under the laws of Washington State.  Any litigation to enforce this contract or any of its provisions shall be brought in Spokane County, Washington.

6.5    NONDISCRIMINATION

No individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this agreement because of age, sex, race, color, religion, creed, marital status, familial status, sexual orientation, national origin, honorably discharged veteran or military status, the presence of any sensory, mental or physical disability, or use of a service animal by a person with disabilities. 

6.6    LIABILITY

The Consultant shall indemnify, defend and hold harmless the City, its officers and employees from all claims, demands, or suits in law or equity arising from the Consultant's negligence or breach or its obligations under the contract.  The Consultant's duty to indemnify shall not apply to liability caused by the sole negligence of the City, its officers and employees.  The Consultant's duty to indemnify for liability arising from the concurrent negligence of the City, its officers and employees and the Consultant, its officers and employees shall apply only to the extent of the negligence of the Consultant, its officers and employees.  The Consultant's duty to indemnify shall survive termination or expiration of the contract.  The Consultant waives, with respect to the City only, its immunity under RCW Title 51, Industrial Insurance. 

6.7    INSURANCE COVERAGE  

During the term of the contract, the Consultant shall maintain in force at its own expense, each insurance coverage noted below:

A.   Worker's Compensation Insurance in compliance with RCW 51.12.020, which requires subject employers to provide workers' compensation coverage for all their subject workers and Employer's Liability Insurance in the amount of $1,000,000;

B.   General Liability Insurance on an occurrence basis, with a combined single limit of not less than $1,000,000 each occurrence for bodily injury and property damage.  It shall include contractual liability coverage for the indemnity provided under this contract.  It shall provide that the City, its officers and employees are additional insureds but only with respect to the Consultant's services to be provided under this contract; and

C.  Automobile Liability Insurance with a combined single limit, or the equivalent of not less than $1,000,000 each accident for bodily injury and property damage, including coverage for owned, hired and non-owned vehicles

D.  Professional Liability Insurance with a combined single limit of not less than $1,000,000 each claim, incident or occurrence.  This is to cover damages caused by the error, omission, or negligent acts related to the professional services to be provided under this contract.  The coverage must remain in effect for at least two (2) years after the contract is complete

There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without sixty (60) days written notice from the Consultant or its insurer(s) to the City.

As evidence of the insurance coverages required by this contract, the Consultant shall furnish acceptable insurance certificates to the City at the time it returns the signed contract.  The certificate shall specify all of the parties who are additional insured, and include applicable policy endorsements, the sixty (60) day cancellation clause, and the deductible or retention level, as well as policy limits.  Insuring companies or entities are subject to City acceptance and must have a rating of A- or higher by Best.  Copies of all applicable endorsements shall be provided.  The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance.

6.8    TERMINATION CLAUSE

Either party may terminate this contract by 30 days written notice to the other party.

Spokane Waste to Energy - Advancing intelligent waste management solutions.