Loading...
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