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HomeMy WebLinkAbout10607RESOLUTION NO. 10607 A RESOLUTION AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $40,000.00 TO RED OAK CONSULTING AND SETTING FORTH $2,000.00 FOR CONTINGENCIES FOR THE 2006 BIENNIAL WASTEWATER RATE REVIEW, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, Section 16 -7 -9 of the Pueblo Municipal Code requires biennial review of wastewater rates and fees; and WHEREAS, Red Oak Consulting, a division of Malcolm Pirnie, Inc., was selected as the Rate Consultant of Record for wastewater utility fees; BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. A Contract, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, by and between the City of Pueblo, a Municipal Corporation, and the Red Oak Consulting, a division of Malcolm Pirnie, Inc., a New York corporation, to provide utility rate consulting services for the Pueblo Wastewater Department is hereby approved, subject to the conditions as set forth in said contract. SECTION 2. The following work will be performed under this agreement: 1. Review sanitary sewer rates and fees 2. Develop recommendations and schedules for revising wastewater rates and fees to assure the ability of such rates and fees to support the cost of wastewater service 3. Develop and maintain a model to assist the City in forecasting future rate and fee changes SECTION 3. The President of the City Council is hereby authorized to execute said Contract on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 4. Funds for work performed under this contract shall be from the Sewer User Fund. APP PRES1DENT 9F CITY CPYWIL INTRODUCED December 27, 2005 BY Michael Occhiato Councilperson L Background Paper for Proposed RESOLUTION AGENDA ITEM # / y DATE: DECEMBER 27, 2005 DEPARTMENT: WASTEWATER DEPARTMENT GENE MICHAEL, DIRECTOR TITLE A RESOLUTION AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $40,000.00 TO RED OAK CONSULTING AND SETTING FORTH $2,000.00 FOR CONTINGENCIES FOR THE 2006 BIENNIAL WASTEWATER RATE REVIEW, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME. ISSUE Should the City Council award an agreement in the amount of $40,000.00 to Red Oak Consulting and set forth $2,000.00 for contingencies for the 2006 biennial wastewater rate review? RECOMMENDATION Approve this Resolution. BACKGROUND Section 16 -7 -9 of the Pueblo Municipal Code requires biennial review of sanitary sewer rates and fees. As an enterprise of the City of Pueblo, is obligated to collect sufficient funds through its rates and fees to pay for its operations. Operating and maintaining the infrastructure of these facilities entails increasing costs. Red Oak Consulting, a division of Malcolm Pirnie, Inc., was selected as the Rate Consultant of Record for wastewater utility fees. The attached professional services agreement between the City and Red Oak Consulting, a division of Malcolm Pirnie, Inc., provides for the required biennial rate review in 2006. FINANCIAL IMPACT Funds for this project are available from the Sewer User Fund. AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES THIS AGREEMENT is made and entered this 27th day of December, 2005, by and between the City of Pueblo, a Municipal Corporation ( "Client ") and Red Oak Consulting ( "Consultant ") for Consultant to render professional 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 SERVICES (a) Consultant shall satisfactorily perform the professional consulting services for the Project described in more detail in Schedule 1 attached hereto. Such services shall include all usual and customary consulting services including any required cost estimating and economic analysis services incident to its work on the Project. (b) To the extent Consultant performs any of the Project work through subcontractors, Consultant 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 Consultant. SECTION 2. CONSULTANT'S RESPONSIBILITIES (a) Consultant shall be responsible for the professional quality, technical accuracy and timely completion of Consultant's work, including that performed by Consultant's consultants and subcontractors, and including drawings, reports and other services, irrespective of Client's approval of or acquiescence in same. (b) Consultant shall be responsible, in accordance with applicable law, to Client for all loss or damage to Client caused by Consultant's negligent act or omission; except that Consultant 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) Consultant shall be responsible for the safety of Consultant's employees in the execution of work under this Agreement and shall provide all necessary safety and protective equipment for said employees. (d) Consultant acknowledges that completion of the comprehensive rate study reports as described in Schedule 1, shall be accomplished by May 26, 2006. (e) Before undertaking any work or incurring any expense which Consultant considers beyond or in addition to the Scope of Work described in Schedule 1 or otherwise contemplated by the terms of this Agreement, Consultant shall advise Client in writing that (i) Consultant considers the work beyond the scope of this Agreement, (ii) the reasons that Consultant believes the out of scope or additional work should be performed, and (iii) a reasonable estimate of the cost of such work. Consultant 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, but in the event the parties fail to negotiate or are unable to agree as to compensation, then Consultant shall be compensated for its direct costs and professional time at the rates set forth in Schedule 3 attached hereto. SECTION 3. FEES FOR SERVICES: PAYMENT. (a) Client will pay to Consultant as full compensation for all services required to be performed by Consultant under this Agreement, except for services for additional work or work beyond the scope of this Agreement, the maximum sum of U.S. $40,000.00, computed in accordance with the Schedule 3 attached hereto. (b) Consultant 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 3 attached hereto, and shall contain appropriate documentation that such services have been performed and such expenses incurred. Thereafter, Client shall pay Consultant 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 3. (d) No compensation shall be paid to Consultant for services required and expenditures incurred in correcting Consultant'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, Consultant 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 Consultant regarding Client's Project requirements and to provide all relevant information, data and previous reports accessible to Client that Consultant may reasonably require. (b) Client shall designate a Project Representative to whom all communications from Consultant 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, Wastewater Director, 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 Consultant, 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 Consultant 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 Consultant is not 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 Consultant's performance hereunder, at any time upon written notice, either for cause or for convenience. Upon such termination, Consultant 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 Consultant 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 Consultant, Consultant shall be paid at the rates specified in the Schedule of Hourly Rates for all services rendered and reasonable costs incurred to date of temrinafion; 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 Consultant or Client. In no event shall payment to Consultant upon termination exceed the maximum compensation provided for complete performance in Section 3(a). (c) In the event termination of this Agreement or Consultant's services is for breach of this Agreement by Consultant, or for other fault of Consultant 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 customary professional standards, or to perform work in a manner deemed satisfactory by Client's Project Representative, then in any of such events, Consultant'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 3 for services satisfactorily performed and reimbursable expenses reasonably incurred, prior to date of termination. (d) Consultant'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 Consultant 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. Consultant shall retain sole ownership of pre-existing proprietary property including but not limited to computer programs, software and models. 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 Consultant 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. Any reuse of the documents prepared by Consultant under this proj ect for other than their specific intended purpose will be at sole ri sk of user and without liability to Consultant. SECTION 8. INSURANCE AND INDEMNITY (a) Consultant 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 Consultant shall obtain and keep in force is as follows: (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) Consultant agrees to hold harmless, defend and indemnify Client from and against any liability to third parties, arising out of negligent acts or omissions of Consultant, its employees, subcontractors and consultants. SECTION 9. SUBCONTRACTS (a) Client acknowledges that Consultant is the prime contractor and the only party with whom Client has a contractual relationship under this Agreement. To the extent Consultant performs any Project activities through subconsultants or subcontractors, Consultant 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) Consultant shall indemnify and defend Client from all claims and demands for payment for services provided by subcontractors of Consultant. (c) Consultant 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 Consultant assigns principal responsibility for services performed under this Agreement. Consequently, Consultant shall identify in writing to Client the individual(s) assigned to each task prior to proceeding with the given task, and client shall advise Consultant of any reasonable objection thereto within 10 days of receipt of such identification. Consultant shall not change consultants or key personnel except after giving notice of a proposed change to Client and receiving Client's consent thereto. Consultant shall not assign or reassign Project work to any person to whom Client has reasonable objection. SECTION 10. (RESERVED) SECTION 11. M ISCELLANEOUS (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 Consultant 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 Consultant at: 3300 S. Parker Road, Suite 305 Aurora, CO 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 Agreement This instrument contains the entire agreement between Consultant and Client respecting the Project, and any other written or oral agreement or representation respecting the Project or the duties of either Client or Consultant 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 Consultant 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 Consultant 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 Emnlovment Opportunity In connection with the performance of this Agreement, neither Consultant nor its consultants shall discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, disability or age. Consultant 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) Severabilitv 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. CORPORATION CITY OF PUEBLO, A MUNICIPAL ATTEST: n By � City Clerk resident City Council REDOAK CONSULTING By v J.��aNa Name: R«H ACO C). (514k li)K Title: C C e Q�es SCHEDULEI City of Pueblo, Colorado 2006 Wastewater Rate Study Scope of Services 1. Provide list of financial, operating, statistical and policy information needed for study. 2. Review Client Municipal Code sections related to system development fees and cost recovery. 3. Update ten -year financial plan included in 2004 Wastewater Rate Study report for revised capital improvement program, growth projections, revenue requirements, and other financial changes in 2006 through 2015. 4. Update cost of service analysis included in 2004 report for changes in customer service characteristics. 5. Update rate design included in Consultant 2004 report to ensure adequate, equitable, understandable and policy - compliant wastewater rates in 2006 through 2015. 6. Prepare draft report summarizing study assumptions, procedures, findings and recommendations. 7. Publish final study report incorporating Owner comments on the draft report. 8. Attend up to five meetings with Owner representatives to discuss: a. Study objectives, City policy considerations, community 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. Recommendations for revising wastewater rates and fees. f. Draft report. g. Final report. 7 SCHEDULE2 City of Pueblo, Colorado 2006 Wastewater Rate Study Project Schedule Provide list of fmancial, operating, statistical January 20, 2006 and policy information needed for study Meet with Assistant City Manager for Fiscal January 20, 2006 Operations to discuss the project Update ten -year financial plan March 2006 Prepare draft report April 2006 Publish final report May 2006 Present recommendations on rates and fees to June — July 2006 the Pueblo City Council at a workshop and at a public hearing SCHEDULE3 City of Pueblo, Colorado 2006 Wastewater Rate Study Schedule of Hourly Rates and Standard Charges Classification Hourly Rates Principal Consultant $275.00 Senior Consultant $198.00 Consultant $149.00 Specialist $125.00 Support Staff $85.00 m