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HomeMy WebLinkAbout10057RESOLUTION NO. 10057 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND BLACK & VEATCH CORPORATION IN THE AMOUNT $64,500.00 FOR PROFESSIONAL SERVICES ASSOCIATED WITH THE BIENNIAL REVIEW OF WASTEWATER REVENUES AND EXPENDITURES BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. An agreement dated February 9, 2004, 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 -4105- 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 February 9, 2004 BY Michael Occhiato Councilperson APPROVED: _ PRESI ENT OF CITY COUNCIL ATTESTED BY: CITY CLERK A,iao - -# /00,S7 I�IMI I■ Background Paper for Proposed RESOLUTION AGENDA ITEM # 8 DATE: FEBRUARY 9, 2004 DEPARTMENT: WASTEWATER Gene Michael, Director TITLE A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND BLACK & VEATCH CORPORATION IN THE AMOUNT OF $64,500.00 FOR PROFESSIONAL SERVICES ASSOCIATED WITH THE BIENNIAL REVIEW OF WASTEWATER REVENUES AND EXPENDITURES ISSUE Should the City of Pueblo enter into an agreement with Black & Veatch Corporation for professional services associated with the Biennial Review of Wastewater Revenues and Expenditures? RECOMMENDATION Approval of the Resolution. BACKGROUND The Municipal Code requires a biennial review of wastewater revenues and expenditures every two years (§ 16 -7 -9). A review was last performed in 2002. The City of Pueblo implemented a sanitary sewer user charge system in 1978. The system is reviewed periodically, and rates are adjusted if necessary. As an enterprise, the Wastewater Department is required to collect revenues sufficient to fund operating costs. Because the Pueblo Water Reclamation Facility was partially funded by a federal grant, and because the Arkansas River Sanitary Sewer Interceptor Replacement Project and other current sanitary sewer rehabilitation projects are being funded by a State Revolving Fund loan, the City is obligated to maintain a sewer user charge system that ensures that each customer class pays its proportionate share of operation and maintenance expenses, plus replacement capital costs needed to keep the sanitary sewer collection and treatment system in good repair and in working order. FINANCIAL IMPACT Funds for this agreement were appropriated in the 2004 Wastewater Department budget and are available in Account No. 525 -4105- 432- 30 -01. The fees will be paid from the Sewer User Fund. Ver. 12/11/03 AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES THIS AGREEMENT is made and entered this 1 day of January, 2004, by and between the City ofPueblo, a Municipal Corporation ( "Client ") and Black & Veatch Corporation ( "Engineer ") for Engineer to render professional engineering and related consulting services for Client with respect to review and analysis of wastewater rates and charges, including user charges, excessive strength surcharges. industrial pretreatment charges, and system development fee use policies, hereinafter referred to as the "Project." In consideration of the mutual covenants hereinafter set forth, the parties agree as follows: SECTION 1. GENERAL AND SCOPE OF SE RVICES . (a) Engineer shall satisfactorily perform the professional engineering and consulting services for the Project described in more detail in Schedule 1 attached hereto. Such services shall include all usual and customary civil, sanitary, mechanical and electrical engineering services including any required cost estimating and economic analysis services incident to its work on the Project. (b) To the extent Engineer performs any of the Project work through subcontractors, Engineer 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 Engineer. SECTION 2. ENGINEER'S RESPON SIBILITIES . (a) Engineer shall be responsible for the professional quality, technical accuracy and timely completion of Engineer's work, including that performed by Engineer's consultants and subcontractors, and including drawings, reports and other services, irrespective of Client's approval of or acquiescence in same. (b) Engineer shall be responsible, in accordance with applicable law, to Client for all loss or damage to Client caused by Engineer's negligent act or omission; except that Engineer hereby irrevocably waives and excuses Client and Client's attorneys from compliance with any requirement 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) Engineer shall be completely responsible for the safety of Engineer's employees in the execution of work under this Agreement and shall provide all necessary safety and protective equipment for said employees. (d) Engineer acknowledges that completion of the comprehensive rate study reports as described in the Basic Services, shall be accomplished by May 28, 2004. (e) Before undertaking any work or incurring any expense which Engineer considers beyond or in addition to the Scope of Work described in Schedule 1 or otherwise contemplated by the terms of this Agreement, Engineer shall advise Client in writing that (i) Engineer considers the work beyond the scope of this Agreement, (ii) the reasons that Engineer believes the out of scope or additional work should be performed, and (iii) a reasonable estimate of the cost of such work. Engineer shall not proceed with any out of scope or additional workuntil authorized in writing by Client. The compensation for such authorized work shall be negotiated, but in the event the parties fail to negotiate or are unable to agree as to compensation, then Engineer shall be compensated for its direct costs and professional time at the rates set forth in Schedule of Hourly Rates attached hereto. SECTION 3. FEES FOR SERVICES; PAYMENT December 11, 2003 (a) Client will pay to Engineer as full compensation for all services required to be performed by Engineer under this Agreement, except for services for additional work or work beyond the scope of this Agreement, the maximum sum of U.S. $64,500, computed in accordance with the Schedule of Hourly Rates attached hereto. (b) Engineer 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 hourly rates and expense reimbursement provisions set forth in Schedule of Hourly Rates attached hereto, and shall contain appropriate documentation that such services have been performed and such expenses incurred. Thereafter, Client shall pay Engineer 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 of Hourly Rates. (d) No compensation shall be paid to Engineer for services required and expenditures incurred in correcting Engineer'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) of this Agreement. (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, Engineer 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 Engineer regarding Client's Project requirements and to provide all relevant information, data and previous reports accessible to Client which Engineer may reasonably require. (b) Client shall designate a Project Representative to whom all communications from Engineer 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. Unless otherwise designated after the date of this Agreement, Client's Project Representative shall be Gene Michael, Director of Wastewater Department, 211 East "D" Street, Pueblo, Colorado. Said representative shall not, however, have authority to bind Client as to matters of governmental policy or fiscal policy, nor to contract for additions or obligations exceeding a value which is $5,000 or 10% of the maximum contract price, whichever is greater. (c) Client shall examine all documents presented by Engineer, and render decisions pertaining thereto within a reasonable time. The Client's approval of any drawings, specifications, estimates, reports, documents or other materials or product furnished hereunder shall not in any way relieve Engineer 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 Engineer is not 5va December 11, 2003 within the custody or control of Client but must be procured from others SECTION 5. TERMINATION. (a) Client reserves the right to terminate this Agreement and Engineer's performance hereunder, at any time upon written notice, either for cause or for convenience. Upon such termination, Engineer and its subcontractors shall cease all work and stop incurring expenses, and shall promptly delivery to Client all data, drawings, specifications, reports, plans, calculations, summaries and all other information, documents and materials as Engineer 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 not the fault of Engineer, Engineer shall be paid at the rates specified in the Schedule of Hourly Rates for all services rendered and reasonable costs incurred to date of termination; together with any reasonable costs incurred within 10 days of termination provided such latter costs could not be avoided or were incurred in mitigating loss or expenses to Engineer or Client. In no event shall payment to Engineer upon termination exceed the maximum compensation provided for complete performance in Section 3(a). (c) In the event termination of this Agreement or Engineer's services is for breach of this Agreement by Engineer, or for other fault of Engineer 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 any of such events, Engineer's entire right to compensation shall be limited to the lesser of (a) the reasonable value to Client of completed work or (b) payment at the rates specified in the Schedule of Hourly Rates for services satisfactorily performed and reimbursable expenses reasonably incurred, prior to date of termination. (d) Engineer'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, estimates, reports and all other documents prepared or provided by Engineer 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 times to inspect and make copies of all notes, designs, drawings, specifications, and all other technical data or other documents pertaining to the work to be performed under this Agreement. In no event shall Engineer 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 any applicable state or federal regulations. SECTION 8. INSURANCE AND INDEMNITY (a) Engineer 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 ofpersonal 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 there from; and such insurance will provide for coverage in such amounts as set forth in subparagraph (b). (b) The minimum insurance coverage which Engineer shall obtain and keep in force is as follows: Egli December 11, 2003 (i) Workers' Compensation Insurance complying with statutory requirements 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. (iii) Professional Liability Insurance with coverage of not less than $1,000,000, and with a deductible acceptable to Client. (c) Engineer agrees to hold harmless, defend and indemnify Client from and against any liability to third parties, arising out of negligent acts or omissions of Engineer, its employees, subcontractors and consultants. SECTION 9. SUBCONTRACTS (a) Client acknowledges that Engineer is the prime contractor and the only party with whom Client has a contractual relationship under this Agreement. To the extent Engineer performs any Project activities through subconsultants or subcontractors, Engineer 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) Engineer shall indemnify and defend Client from all claims and demands for payment for services provided by subcontractors of Engineer. (c) Engineer acknowledges that, due to the nature of the services to be provided under this Agreement, the Client has a substantial interest in the personnel and consultants to whom Engineer assigns principal responsibility for services performed under this Agreement. Consequently, Engineer shall identify in writing to Client the individual(s) assigned to each task prior to proceeding with the given task, and client shall advise Engineer of any reasonable objection thereto within 10 days of receipt of such identification. Engineer shall not change consultants or key personnel except after giving notice of a proposed change to Client and receiving Client's consent thereto. Engineer 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 Engineer 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, when deposited in the United States mail, first -class postage prepaid, addressed to the Client, Attention: Gene Michael, 211 East "D" Street. , Pueblo, Colorado, or to Engineer at 11900 E. 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- -4- December 10, 2003 (b) Entire Agreement This instrument contains the entire agreement between Engineer and Client respecting the Project, and any other written or oral agreement or representation respecting the Project or the duties of either Client or Engineer 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 Engineer may be assigned by it without the written consent of Client. (d) Amendments No amendment to this Agreement shall be made nor be enforceable unless made by written amendment signed by an authorized representative of Engineer 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 State of Colorado. Any unresolved dispute arising from or concerning any breach of this Agreement shall be decided in a state court of competent jurisdiction located in Pueblo, Colorado. (f) Equal Employment Opportunity In connection with the performance of this Agreement, neither Engineer nor its consultants shall discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, disability or age. Engineer shall endeavor to insure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, national origin, disability or age. (g) Severability If any provision of this Agreement is determined to be directly contrary to and prohibited by law or the requirements of any federal grant or other Project funding source, then such provision shall be deemed void and the remainder of the Agreement enforced. IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written. ATTEST: Q City rk CITY OF P BLO, A MUNICIPAL CORPORATION B / - ;�� Y President of ie City Council BLACK & VEATCH CORPORATION By T Namee:: �� rl U F( Titlk V Q2 P (U (G to December 10, 2003 SCHEDULE 1 City of Pueblo, Colorado 2004 Wastewater Rate Study Scope of Services 1. Provide list of financial, operating, statistical and policy information needed for study. 2. Review Owner's proposed Sanitary Sewer Design Criteria and Policies Manual regarding development and main extension policies. This review will address the following items: a. Feasibility of establishing oversizing policy. b. Basis for calculating cost recovery. C. Criteria for use of sanitary sewer connection and plant investment fees. 3. Review Owner Municipal Code sections related to system development fees and cost recovery. 4. Survey development policies of the Board of Water Works ofPueblo, Colorado and ten other comparable Front Range wastewater utilities. 5. Update ten -year financial plan included in Consultant 2002 Wastewater Rate Study report for revised capital improvement program, growth projections, revenue requirements, and other financial changes in 2004 through 2013. 6. Update cost of service analysis included in Consultant 2002 report for changes in customer service characteristics. 7. Update rate design included in Consultant 2002 report to ensure adequate, equitable, understandable and policy compliant wastewater rates in 2004 through 2013. 8. Review system development fees in Consultant 2002 report. The system buy -in and incremental methods used to calculate these fees will be reviewed for relevancy and compliance with Owner policies. Evaluate alternative system development fees based on different backbone system definitions and sanitary sewer extension policies (including proposed oversizing policy) to facilitate evaluating alternative policies. 9. Prepare draft report summarizing study assumptions, procedures, findings and recommendations. 10. Publish final study report incorporating Owner comments on the draft report. 11. Train City staff in use of computer rate model. C December 10, 2003 12. Attend up to eight meetings with Owner representatives to discuss: a. Study objectives, City policy considerations, Homebuilder concerns, study schedule and required data. b. Financial plan findings. C. Cost of service analysis and rate design findings. d. System development fees findings. e. Development policies and Front Range survey. f. Draft report. g. Final report. h. Computer rate model training for City staff. PROJECT SCHEDULE Compare Sanitary Sewer Design Criteria and Policies February 2004 manual with policies of other Front Range cities regarding system development fees Update ten -year financial plan April 2004 Prepare draft report April 2004 Publish final report May 2004 Attend meeting of the Pueblo City Council if needed June — July 2004 7 City of Pueblo, Colorado 2004 Wastewater Rates and Developer Policies Review Black & Veatch Hourly Billing Rates Project Manager $210 Consultant $125 Administrative Assistant $65