HomeMy WebLinkAbout08954RESOLUTION NO. 8954
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
THE CITY OF PUEBLO AND BLACK & VEATCH CORPORATION
FOR PROFESSIONAL SERVICES ASSOCIATED WITH THE
WASTEWATER UTILITY FINANCIAL PLAN AND RATES
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1
An Agreement dated February 28, 2000, a copy of which is attached hereto and
made a part hereof, after having been approved as to form by the City Attorney, by and
between Pueblo, a Municipal Corporation, and Black & Veatch Corporation, is hereby
approved.
SECTION 2
Funds for said professional services shall be paid from Account No. 525 -4130-
432.30 -01.
SECTION 3
The President of the City Council is hereby authorized to execute said
Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix
the seal of the City thereto and attest the same.
INTRODUCED March 27 , 2000
Rich Golenda
/) Councilperson
r
APPROVED- I
.114a /I /,P
President of the Council
ATTEST:
City Clerk
t - - --- --!I A -1
l—'V U ull t1gCllua
Title: A RESOLUTION APPROVING AN AGREEMENT Agenda Item #
BETWEEN THE CITY OF PUEBLO AND BLACK
& VEATCH CORPORATION FOR PROFESSIONAL
SERVICES ASSOCIATED WITH THE WASTEWATER
UTILITY FINANCIAL PLAN AND RATES
Department: WASTEWATER DEPARTMENT Date: MARCH 27, 2000
ISSUE
Should the City of Pueblo enter into an agreement with Black & Veatch for professional
services associated with the Wastewater Utility Financial Plan and Rates.
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
In 1978, the City of Pueblo implemented a sewer user charge system. Over the years
the system has been reviewed and rates adjusted, if necessary. Since the new
Wastewater Treatment Plant (WWTP) was partially funded by a Federal Grant and
Revenue Bonds, the City is obligated to maintain the sewer user charge system. The
EPA requires that each customer class pay its proportional share of operation and
maintenance expenses plus replacement capital costs required to keep the City's
sanitary sewer system in good repair and working order.
Since the last major review and analysis of the financial plan and rates in 1987, the
City's Wastewater staff has annually reviewed and updated the plan. Now that the new
WWTP has operated for some time and there have been changes in the Wastewater
Department, it is time to perform another detailed review and analysis of the plan and
rates. Initially, Black and Veatch estimated the cost for a detailed review to be
approximately $32,300.00. Since much of the work can and will be done by
Wastewater staff, the cost for the review and analysis is reduced to $23,400.00
FINANCIAL IMPACT
The proposed fee for professional services stipulated in the agreement is $23,400.00
plus time and materials for any work done beyond the original scope of work. If
approved, the funds will come from the Wastewater Administration - Professional
Services Account number 525- 4130 - 432.30 -01.
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT is made and entered this 28th day of February, 2000, by and between the City of Pueblo, a
Municipal Corporation ( "Client ") and Black & Veatch Corporation, a Colorado Corporation ("B &V"), for B &V to render
professional services for Client with respect to the update of wastewater rates for the City of Pueblo and related ancillary
services, hereinafter referred to as the "Project." In consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:
SECTION 1. GENERAL SCOPE OF SERVICES
(a) B &V shall satisfactorily perform the professional services for the Project described in more detail in
Schedule 1 attached hereto and incorporated herein by reference (the "Basic Services "). Such services shall include all usual
and customary professional planning services including any required reports, drafting or design services incident to its work
on the Project.
(b) To the extent B &V performs any of the Project work through subcontractors, B &V shall be and remain
as fully responsible for the full performance and quality of services performed by such subcontractors as it is for services
performed directly by B &V.
SECTION 2. B &V's RESPONSIBILITIES
(a) B&V shall be responsible for the professional quality, technical accuracy and timely completion of B &V's
work, including that performed by B &V's consultants and subcontractors, and including drawings, reports and other
services, irrespective of Client's approval of or acquiescence in same.
(b) B&V shall be responsible, in accordance with applicable law, to Client for all loss or damage to Client
caused by B &V's negligent act or omission; except that B &V hereby irrevocably waives and excuses Client and Client's
attorneys from compliance with any requirements to obtain a certificate of review as a condition precedent to commencement
of an action, including any such requirements set forth in Section 13 -20 -602, C.R.S. or similar statute, whether now existing
or hereafter enacted.
(c) B &V shall be completely responsible for the safety of B& V's employees in the execution of work under
this agreement and shall provide all necessary safety and protective equipment for said employees.
(d) B &V acknowledges that time is of the essence with respect to the completion of its services under this
Agreement. B &V shall perform its work in a timely manner so as not to delay Client's timetable for final completion of
Project work. B &V further acknowledges that its schedule has accounted for all reasonably anticipated delays, including
those inherent in the availability of tools, supplies, labor and utilities required for the work, the availability of information
which must be obtained from any third parties, and all conditions to access to public and private facilities.
(e) Before undertaking any work or incurring any expense which B &V considers beyond or addition to the
Scope of Work described in Schedule 1 or otherwise contemplated by the terms of this Agreement, B &V shall advise Client
in writing that (i) B&V considers the work beyond the scope of this agreement, (ii) the reasons that B&V believes the out
of scope or additional work should be performed, and (iii) a reasonable estimate of the cost of such work. B&V shall not
proceed with any out of scope or additional work until authorized in writing by Client. The compensation for such authorized
work shall be negotiated.
-1-
SECTION 3. FEES FOR SERVICES: PAYMENT
(a) Client will pay to B&V as full compensation for all services required to be performed by B &V under this
Agreement, except for services for additional work or work beyond the scope of this Agreement, the maximum sum of U. S.
$23,400 computed as set forth in Schedule 1.
(b) B&V shall submit periodic, but not more frequently than monthly, applications for payment, aggregating
to not more than the maximum amount set forth above, for actual professional services rendered and for reimbursable
expenses incurred. Applications for payment shall be submitted based upon the work performed and shall contain
appropriate documentation that such services have been performed and such expenses incurred. Thereafter, Client shall pay
B &V for the amount of the application within 40 days of the date such application is received.
(c) No separate or additional payment shall be made for profit, overhead, local telephone expenses, lodging,
routine photocopying, computer time, secretarial or clerical time or similar expenses unless otherwise provided and listed
in Schedule 2.
(d) No compensation shall be paid to B &V for services required and expenditures incurred in correcting
B &V's mistakes or negligence.
(e) Compensation for authorized work beyond the scope of this Agreement shall be governed by the
provisions of Section 2(e).
(f) In the event services under this Agreement are phased and to be performed in more than one fiscal year
or are subject to annual appropriation, B&V acknowledges that funds only in the amount of initial appropriation are available
and it shall confirm availability of funds before proceeding with work exceeding initial and subsequent annual appropriations.
SECTION 4. CLIENT'S RESPONSIBILITIES
(a) Client agrees to advise B &V regarding Client's Project requirements and to provide all relevant
information, surveys, data and previous reports accessible to Client which B &V may reasonably require.
(b) Client shall designate a Project Representative to whom all communications from B &V shall be directed
and who shall have limited administrative authority on behalf of Client to receive and transmit information and make
decisions with respect to the Project. Said representative shall not, however, have authority to bind Client as to matters of
governmental policy, nor to contract for additions or obligations exceeding a value which is the lesser of $5,000 or 5% of
the maximum contract price.
(c) Client shall examine all documents presented by B &V and render decisions pertaining thereto within a
reasonable time. The Client's approval of any drawing, specifications, reports, documents or other materials or product
furnished hereunder shall not in any way relieve B &V of responsibility for the professional adequacy of its work.
(d) Client shall perform its obligations and render decisions within a reasonable time under the circumstances
presented. Based upon the nature of Client and its requirements, a period of 14 days shall be presumed reasonable for any
decision not involving policy decision or significant financial impact. A period of 46 days shall be presumed reasonable for
Client to act with respect to any matter involving policy or significant financial impact. The above periods of presumed
reasonableness shall be extended where information reasonably required by B &V is not within the custody or control of
Client but must be procured from others.
-2-
SECTION 5. TERMINATION
(a) Client reserves the right to temminate this Agreement and B &V's performance hereunder, at any time upon
written notice, either for cause or convenience. Upon such termination, B& V and its subcontractors shall cease all work
and stop incurring expenses, and shall promptly deliver to Client all data, drawings, specifications, reports, plans,
calculations, summaries and all other information, documents and materials as B& V may have accumulated in performing
this Agreement, together with all finished work and work in progress.
(b) Upon termination of this Agreement for events or reasons no the fault of B& V, B &V shall be paid at the
rates specified in Schedule 1 for all services rendered and reasonable costs incurred to date of termination; together with any
reasonable cots incurred within 10 days of termination provided such latter costs could not be avoided or were incurred in
mitigating loss or expenses to B &V or Client. In no event shall payment to B &V upon termination exceed the maximum
compensation provided for complete performance in Section 3 (a).
(c) In the event termination of this agreement of B& V's services if for breach of this Agreement by B& V or
for other fault of B &V including but not limited to any failure to timely proceed with work, or to pay its employees and
consultants, or to perform work according to the highest professional standards, or to perform work in a manner deemed
satisfactory by Client's Project Representative, then in that event, B &V's entire right to compensations shall be limited to
the lesser of (a) the reasonable value of completed work or (b) payment at the rates specified in Schedule 1 for services
satisfactorily performed and reimbursable expenses reasonably incurred, prior to date of termination.
(d) B &V's professional responsibility for its completed work and services shall survive any termination.
SECTION 6. RESERVED
SECTION 7. USE OF DOCUMENTS
(a) Plans, drawings, designs, specifications, reports and all other documents prepared or provided by B &V
hereunder shall become the sole property of Client, and Client shall be vested with all rights therein of whatever kind and
however created, whether by common law, statute or equity. Client shall have access at all reasonable time to inspect and
make copies of all note, designs, drawings, specifications, and all other technical date or other documents pertaining to the
work to be performed under this Agreement. In no event shall B &V publish work product developed pursuant to this
Agreement except (i) with advance written consent of Client and (ii) in full compliance with the requirements of this
Agreement and applicable federal regulations.
SECTION 8. INSURANCE AND INDEMNITY
(a) B&V agrees that it shall procure and will maintain during the term of this agreement, such insurance as
will protect it from claims under workers' compensation acts, claims for damages because of personal injury including bodily
injury, sickness or disease or death of any of its employees or of any person other than its employees, and from claims or
damages because of injury to or destruction of property including loss of use resulting therefrom; and such insurance will
provide for coverage in such amounts as set forth in subparagraph (b).
(b) The minimum insurance coverage which B &V shall obtain and keep in force is as follows:
(i) Worker's Compensations Insurance complying with statutory requirments in Colorado and in
any other state or states where the work is performed.
(ii) Comprehensive General and Automobile Liability Insurance with limits not less than Six
Hundred Thousand and No /100 Dollars ($600,000.00) per person and occurrence for personal injury, including
but not limited to death and bodily injury, and Six Hundred Thousand and No /100 Dollars ($600,000.00) per
occurrence for property damage.
-3-
(iii) Professional Liability Insurance with coverage of not less than $1,000,000 and with a deductible
acceptable to client.
(c) B &V agrees to hold harmless, defend and indemnify Client from and against any liability to third parties,
arising out of negligent acts or omissions of B &V, its employees, subcontractors and consultants.
SECTION 9. SUBCONTRACTS
(a) Client acknowledges that B &V is the prime contractor and the only party with whom Client has a
contractual relationship under this Agreement. To the extent B &V performs any Project activities through subconsultants
or subcontractors, B&V shall contractually bind each of its subconsultants and subcontractors by subcontract agreement to
all of the terms of this Agreement which are for the benefit of Client, and Client shall be a third party beneficiary of those
subcontract provisions.
(b) B &V shall indemnify and defend client from all claims and demands for payment for services provided
by subcontractors of B &V.
(c) B&V acknowledges that due to the nature of the services to be provided under this Agreement, the Client
had substantial interest in the personnel and consultants to whom B &V assigns principal responsibility for services
performed under this Agreement. Consequently, B &V represents that is has selected and intends to employ or assign the
key personnel and consultants identified in its proposal submitted to Client prior to execution of this Agreement to induce
Client to enter this Agreement. B &V shall not change such consultants or key personnel except after giving notice of a
proposed change to Client and receiving Client's consent thereto. B &V shall not assign or reassign Project work to any
person to whom Client has reasonable objection.
SECTION 10. RESERVED
SECTION 11. MISCELLANEOUS
(a) Notices Any and all notices or other communications required or permitted by this Agreement or by law
to be served on or given to either B&V or Client by the other party shall be in writing and shall be deemed duly served and
given when personally delivered to the party to whom it is directed, or in lieu of such personal service, whenever deposited
in the United States mail, first -class postage prepaid, addressed to Client, Attention:
CiV of Pueblo -Wastewater Dept., 211 East "D" St. Pueblo, CO. 81003 or to B &V at Black & Veatch 11900 East
Cornell Avenue. Suite 300_ Aurora, Colorado 80014 Either party may change his address for the purpose of this paragraph
by giving written notice of such change to the other party in the manner provided in this paragraph.
(b) Entire Aa- gement This instrument contains the entire agreement between B &V and client respecting
the Project, and any other written or oral agreement or representation respecting the Project or the duties of either Client or
B &V in relation thereto not expressly set forth in this instrument and its attachments is null and void.
(c) Successors and Assigns This Agreement shall be binding on the parties hereto and on their successors
and assigns; provided, however, neither this Agreement, nor any part thereof, nor any moneys due or to become due
hereunder to B &V may be assigned by it without the written consent of the Client.
(d) Amendments No amendments to this Agreement shall be made nor be enforceable unless made by
written amendment signed by an authorized representative of B&V and by Client in accordance with the requirements of
Section 4 (b) of this Agreement or upon authorization of Client's governing board.
(e) Choice of Law This Agreement shall be governed and interpreted in accordance with the laws of the
-4-
Q Schedule 1
"Basic Services"
BLACK & VEATCH
11900 East Cornell Avenue
Suite 300
Aurora, Colorado 80014 USA
Tel: (303) 671-4200
Fax: (303) 671-4285
Mr. James R. DiIorio
Director of Utilities
City of Pueblo
211 East "D" Street
Pueblo, CO 81003
Dear Mr. DiIorio:
Black & Veatch Corporation
February 21, 2000
As requested, Black & Veatch (Consultant) is submitting this proposal to update wastewater
rates for the City of Pueblo (Owner). The proposal includes a scope of services and estimated
fee.
SCOPE OF SERVICES
The Consultant provided the Owner with a computer rate model in 1994 and updated the model
in 1996. This study will incorporate the 1996 model framework to update wastewater rates. The
following tasks are necessary to perform the proposed study:
1. Consultant will meet with Owner representatives to gather information for study and
discuss Owner policies affecting study.
2. Consultant will update financial plan for the years, 2000 through 2005. Up to three
financial plan scenarios will be provided by the Consultant.
3. Consultant will update cost of service analysis using cost - causative method
endorsed by Water Environment Federation. This analysis will identify cost of
providing wastewater service to customer classes served by Owner. The classes will
include at a minimum non - industrial, industrial, Blende Sanitation District, and
other customers who discharge liquid or semi - liquid waste into the system.
4. Consultant will design rates to produce sufficient annual revenue to meet annual
revenue requirements and fairly recover class cost of service. Proposed rates will
recognize Owner policies and contractual agreements.
the imagine -build company-
Mr. James R. DiIorio 2 February 21, 2000
5. Consultant will update connection charges. These charges are assessed to new
connections and recover new connector's proportionate share of cost of system
capacity.
6. Consultant will provide study report documenting assumptions, procedures,
calculations, findings, and recommendations. Up to two drafts of the study report
will be provided.
7. Consultant will attend one meeting with Owner representatives to present study
findings.
8. Consultant will update Owner's computer rate model to include analysis used to
develop proposed wastewater rates.
ESTIMATED FEE
As requested, two fee estimates are presented that vary with the level of Owner participation in
the study. A summary of the fee estimates is shown in the tabulation below.
■ Fee Estimate A assumes Consultant will perform all tasks with minimal Owner
assistance. The Owner will be responsible for providing necessary data and policy
information and for reviewing interim findings and recommendations. A fee of $32,300
is estimated.
■ Fee Estimate B assumes Consultant would assist the Owner in the performance of the
study. In addition to having the responsibilities described in Fee Estimate A, Owner
would perform Tasks 2 through 6 with minimal review provided by the Consultant. A fee
of $23,400 is estimated.
Task
Estimate A
Estimate B
Project Orientation
1,500
1,500
Financial Plan
5,300
2,800
Cost of Service
3,600
1,800
Rate Design
2,100
2,100
Connection Charges
7,100
3,600
Report
7,600
6,500
Presentation
1,500
1,500
Computer Model Update
3.600
3.600
Total
32,300
23,400
Mr. James R. DiIorio
N
February 21, 2000
We greatly appreciate the opportunity to submit this proposal. Please call me if you have any
questions.
Very truly yours,
a.
John A. Gallaghe