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HomeMy WebLinkAbout11311RESOLUTION NO. 11311 A RESOLUTION APPROVING AN AGREEMENT IN THE AMOUNT OF $23,101.00 BETWEEN THE CITY OF PUEBLO AND RED OAK CONSULTING FOR PROFESSIONAL SERVICES ASSOCIATED WITH REVIEWING SANITARY SEWER RATES WHEREAS, the City of Pueblo owns, operates and maintains a wastewater collection and treatment system subject to the requirements of the Federal Clean Water Act and the Colorado Water Quality Control Act; and WHEREAS, the operation of the wastewater system is funded through user charges, and WHEREAS, the City Council desires periodic review of wastewater charges to ensure that revenues are appropriate and are adequate to fully fund the operation of the wastewater system; and, WHEREAS, the City has selected Red Oak Consulting to provide certain professional services in connection with wastewater charges; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Agreement for Professional Services by and between Pueblo, a Municipal Corporation, and Red Oak Consulting, a true copy of which is attached hereto and incorporated herein by reference (the "Agreement ") having been approved as to form by the City Attorney, is hereby approved. SECTION 2_ The President of City Council is hereby authorized to execute the Agreement in the name and on behalf of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3_ Funds for payment for professional services under said Agreement in the amount of $23,101.00 shall be paid from appropriated and unencumbered funds budgeted in the City's 2008 Budget from the Sewer User Fund. INTRODUCED June 9, 2008 BY Judy Weaver Councilperson AP PROVE LA HL- ATTEST ED BY: Cff. � y PPI`81f I T' i I k- Background Paper for Proposed RESOLUTION DATE: June 9, 2008 DEPARTMENT: WASTEWATER Gene Michael, Director TITLE Res, 11311 AGENDA ITEM # 5 A RESOLUTION APPROVING AN AGREEMENT IN THE AMOUNT OF $23,101.00 BETWEEN THE CITY OF PUEBLO AND RED OAK CONSULTING FOR PROFESSIONAL SERVICES ASSOCIATED WITH REVIEWING SANITARY SEWER RATES ISSUE Should the City Council approve an agreement in the amount of $23,101.00 with the Red Oak Consulting for professional services associated with reviewing sanitary sewer rates RECOMMENDATION Approval of Resolution BACKGROUND The Pueblo City Council adopted a 10 -year financial plan for the wastewater enterprise in 2006. This financial plan included a series of wastewater rate increases intended to capture the full cost of operating the wastewater system• and allowing for rehabilitation of the sanitary sewer infrastructure. The discharge permit for the Water Reclamation Facility expired in July 2007 and is presently being renewed. The new permit will require constructing new treatment facilities to remove ammonia. The cost of this construction will require modifying the wastewater rate structure. The Municipal Code requires that sanitary sewer rates be reviewed no less often than every two years. In 2006 the City Council expressed a desire to receive annual updates on wastewater rates. Red Oak Consulting was selected as the City's wastewater rate consultant of record in 2005. A copy of the agreement with Red Oak Consulting is attached. AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is made and entered this 9 rh day of n e , 200 8 , by and between the City of Pueblo, a Municipal Corporation ( "Client ") and Malcolm Pimie Inc a New York corporation, doine business as Red Oak Consulting (hereinafter referred to as "Consultant ") for Consultant to render professional planning and consulting services for Client with respect to Wastewater Rate Review for 2008 andrelatedancillary services, 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 planning and consulting 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 and consulting services including any required drafting or design services incident to its work on the Project. (b) To the extent Consultant performs any of the Project work through subcontractors or subconsultants, 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. (c) To the extent Consultant requires access to private property to perform its services hereunder, Consultant shall be required to make arrangements to obtain such access. However, in the event Client has already secured access for Consultant to any such property through a right of entry agreement, access agreement, letter of consent or other instrument, Consultant shall fully comply with and be subject to the terms and conditions set forth therein. A copy of any such instrument will be provided to Consultant upon request. 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 subconsultants and subcontractors, and including drawings, reports and other services, irrespective of Clients 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 completely 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 time is of the essence with respect to the completion of its services under this Agreement. Consultant represents that Schedule 2 attached hereto is the schedule by which Consultant proposes to accomplish its work, with time periods for which it will commence and complete each major work item. Except to the extent the parties agree to time extensions for delays beyond the control of Consultant, Consultant shall adhere to this schedule and perform its work in a timely manner so as not to delay Client's timetable for achievement of interim tasks and final completion of Project work. Consultant 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 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. $ 23.101 00 , computed as set forth in Schedule 3. (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 45 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). (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, surveys, data and previous reports accessible to Client which 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. 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 the lesser of $5,000 or 5% of the maximum contract price. (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, 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. -2- (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. TERMINA (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 deliver 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 Schedule 3 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 notbe 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, orto 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, Consultant's entire right to compensation shall be limited to the lesser of (a) the reasonable value of completed work or (b) payment at the rates specified in Schedule 3 for services satisfactorily performed and reimbursable expenses reasonably incurred, priorto date of termination. (d) Consultant's professional responsibility for its completed work and services shall survive any termination. SECTION 6, SITE ACCESS In the event the Project will require access to property not under the control of Client, Consultant and Consultant's employees and consultants shall obtain all additional necessary approval and clearances required for access to such property. Client shall assist Consultant in obtaining access to such property at reasonable times but makes no warranty or representation whatsoever regarding access to such property. Notwithstanding the foregoing, Consultant understands and agrees that entry to some property by Consultant may be subject to compliance by Consultant with the terms and conditions of an access agreement in accordance with section 1(c) of this Agreement. SECTION 7. USE OF DOCUMENTS (a) Plans, drawings, designs, specifications, reports and all other documents prepared or provided by Consultant hereunder shall become the sole property of Client, subject to applicable federal grant requirements, 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 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 applicable federal regulations. -3- 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 parry 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 ofthe 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 represents that it 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. Consultant shall not change such 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. 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 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: -4- Gene Michael Wastewater Director, 211 East "D" Street, Pueblo, CO, 81003 Pueblo, Colorado, or to Consultant at Todd Cristiano Red Oak Consulting 100 Fillmore Street Suite 200, Denver, CO 80206 . 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 thew 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 Clienfs 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 Onportuniri 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) Severability If any provision of this Agreement, except for Section 2, 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. However, it is the intent of the parties that Section 2 of this Agreement not be severable, and that if any provision of said section be determined to be contrary to law or the terms of any federal grant, then this entire Agreement shall be void. SECTION 12 — STATE - IMPOSED MANDATES PROHIBITING ILLEGAL ALIENS FROM PERFORMING WORK (a) Prior to or within ten (10) days of execution of this Agreement, Consultant shall submit to the Purchasing Agent of the Client its certification that it does not knowingly employ or contract with an illegal alien and that the Consultant has participated or attempted to participate in the "Basic Pilot Program" created in Public Law 208, 104" Congress, as amended and expanded in Public law 156, 108" Congress, as amended, that is administered by the United States Department of Homeland Security in order to confirm the employment eligibility of all employees who are newly hired for employment in the United States. (b) Consultant shall not: (1) Knowingly employ or contract with an illegal alien to perform work under this contract; (11) Enter into a contract with a subconsultant that fails to certify to Consultant that the subconsultant shall not knowingly employ or contract with an illegal alien to perform work under this contract. (c) The following state- imposed requirements apply to this contract: -5- (I) The Consultant shall have confirmed or attempted to confirm the employment eligibility of all of its employees who are newly hired for employment in the United States through participation in the Basic Pilot Program and, if the Consultant is not accepted into the Basic Pilot Program prior to entering into this contract, that the Consultant shall apply to participate in the Basic Pilot Program every three months until the Consultant is accepted or this Contract has been fully completed, whichever occurs earlier. This provision shall not be required or effective if the Basic Pilot Program is discontinued. (II) The Consultant is prohibited from using the Basic Pilot Program procedures to undertake preemployment screening of job applicants while this Contract is being performed. (III) If the Consultant obtains actual knowledge that a subconsultant performing work under this contract knowingly employs or contracts with an illegal alien, the Consultant shall be required to: A. Notify the subconsultant and the Client's Purchasing Agent within three (3) days that the Consultant has actual knowledge that the subconsultant is employing or contracting with an illegal alien; and B. Terminate the subcontract with the subconsultant ifwithin three (3) days ofreceiving the notice required pursuant to subparagraph (c)(III)A. above the subconsultant does not stop employing or contracting with the illegal alien; except that the Consultant shall not terminate the contract with the subconsultant if, during such three (3) days, the subconsultant provides information to establish that the subconsultant has not knowingly employed or contracted with an illegal alien. (IV) The Consultant is required to comply with any reasonable request by the Colorado Department of Labor and Employment (hereinafter referred to as "CDLE ") made in the course of an investigation that CDLE is undertaking pursuant to its authority under §8 -17.5- 102(5), C.R.S. (d) Violation of this Section 12 by the Consultant shall constitute a breach of contract and grounds for termination. In the event of such termination, the Consultant shall be liable for Client's actual and consequential damages. (e) As used in this Section 12, the term "subconsultant" shall mean any subconsultant or subcontractor of Consultant rendering services within the scope of this Agreement. SECTION 13. STATE IMPOSED MANDATES REGARDING COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) EMPLOYER CONTRIBUTIONS. The Contractor shall reimburse the City for the full amount of any employer contribution required to be paid by the City of Pueblo to the Public Employees' Retirement Association ( "PERA ") for salary or other compensation paid to a PERA retiree performing contracted services for the City under this Agreement. The Contractor shall fill out the questionnaire attached as Exhibit 4 and submit the completed form to City as part of the signed Agreement. M IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written. CITY OF PUEBLO, A MUNICIPAL CORPORATION By President of the City Council ATTEST;;; -,_- _ APPROVED AS TO FORM: City Attorney City Cler C ANT: By: t� p V tC-O- tre�tOlY� Name: Richard Giardina, Vice President Title: Malcolm Pirnie, Inc. SG SCHEDULE 1 SCOPE OF WORK J1 tT7(l p V OLSC PATHWAYS TO LASTING SOLUTIONS CRNJSl1 U LTING + A DIVISION or MALCOLM PIFMIL City of Pueblo, CO Scope of Services 2008 Wastewater Financial Plan and Rate Services Task 1.0 — Kickoff Meeting and Data Acquisition 1.1 Meet with City representatives to confirm study objectives, expectations, and schedule. 1.2 Red Oak will provide a data request list detailing information needed to complete the study. Task 2.0 — Financial Plan and Rate Update 2.1 Revenue Under Existing Rates. Conduct an analysis of revenue generated from rates, fees and charges to evaluate the components of the revenue stream and its associated variability, determine whether rates are generating the expected revenue, and to project revenues for the 10 -year study period 2009 through 2018. 2.2 Operating Expense Projections. A projection of operating expenses based on utility's line -item budget and a review of projected cost trends will be conducted in sufficient detail to: a. Determine and evaluate rates of growth (Pueblo Springs Ranch) b. Evaluate changes in personnel and salary requirements c. Recognize types of expenses incurred by the system d. Project expenses for the study period 2.3 Capital Improvement Program Funding. Red Oak will revise the CEP with input from City staff and identify non -rate sources of funds applicable to the CIP that will result in the lowest impact on utility rates. Red Oak will separate the CIP into collection system related projects and treatment related projects. With assistance from the City Red Oak will develop 3 CIP scenarios to include in the cash flow analysis. 2.4 Total Revenue Requirements. A summary of total revenue requirements of the system will be prepared for each year of the forecast period. This summary will be the basis for developing alternatives for addressing any revenue deficiencies. 2.5 Financial Plan Scenarios. Red Oak will prepare up to 3 cash flow scenarios for review by the City, each varying the timing and amount of revenue adjustments needed to meet revenue requirements and fund the capital improvement program. 2.6 Rates. Red Oak will update the components of the existing rate structure to ensure revenue from proposed rates meet annual revenue requirements. , 100 Flllmore Street • Unit 200 • Denver. CO 80206 • T 303.316 -5500 • F 30331 &9599 • www.redoekooneul9rry.wm 2.7 Technical Memorandum. Prior to the financial plan workshop, Red Oak will prepare a memorandum detailing the assumptions and findings in the financial plan for the City's review. This will allow City Staff to familiarize themselves with the preliminary results. 2.8 Financial Plan and Rate Design Workshop. Meet with City representatives to review findings of financial plan and rate design. Task 3.0 — Reporting and Council Meeting Attendance 3.1 Reporting. A preliminary draft report will be prepared that documents the analyses and assumptions, including the financial plan results, and the results of rate design. Following the City's review, the draft report will be modified to reflect comments received from City staff and a final report will be issued. Red Oak will provide 10 copies of the final report to the City. 3.2 Meeting Attendance. Red Oak will attend two City Council meetings to present findings to the public. Red Oak anticipates a total of four meetings to be held during the study. This scope identifies the following meetings: 1. Kickoff meeting 2. Financial plan and rate design workshop 3. City Council meeting #1 4. City Council meeting #2 Supplemental Services Supplemental tasks to those included in the Basic Scope of Services may be requested by the City during the study. Red Oak will perform these services upon written authorization from the City on a time- and - materials basis using the attached hourly billing rates. Such services may include, but not be limited to, the following tasks: ♦ Cost of service analysis ♦ Changes to the existing rate structure ♦ Attendance at more than the 4 meetings stated in Task 3.2 ♦ Development of plant investment fees or sanitary sewer connection fees ' t "Hi 1 Pro)ect CDat Batnnate ' "" ,,.. 3 P, r r 2008 Rate!Consulttng Services rn ;Task Houra. .Cost Kickoff Meeting 20 $3,736 Financial Plan & Rates 85 12,425 Reporting and Council Meetings 40 6.440 Subtotal Labor 145 $22,601 Other Direct Costs 500 Total Project Costs $23101 • 100 FUlmore Street • Unit 200 • Demer, CO 80206 • T303- 3168500 . F303-3166599 • w .redoakcrosuPong.com SCHEDULE2 WORK SCHEDULE RED AKCONSULTING MEMORANDUM � o,nuoe or •�ecoev none To: Gene Michael, Director Date: May 13, 2008 City of Pueblo From: Todd Cristiano, Senior Consultant Zach Demko, Consultant Re: 2008 Wastewater Financial Plan and Rate Services Introduction The City of Pueblo (City) retained Red Oak Consulting (Red Oak) to conduct a 2008 wastewater financial plan and rate update. This memo summarizes the planned schedule of project deliverables and meetings. Project Schedule Task 1: • April 3' - Kickoff meeting Task 1 & 2: • April 3' through June 6 — Data Acquisition, Develop Financial Plan and Rate Scenarios • June 9 - Deliver draft financial plan and rate design technical memorandum • During the week of June 9 through June 13 - Financial plan and rate design workshop • Week of June 16` through June 20 Prepare final financial plan and rate design technical memorandum Task 3: • Week of June 23 through June 27 — Prepare draft report that documents the analyses and assumptions, including the financial plan results, and the results of rate- design • Week of June 30 through July 3 - City Council meeting #1 • Week of July 7 through July 11 — Prepare final report that documents the analyses and assumptions, including the financial plan results, and the results of rate design • Week of July 14 through July 18` — City Council meeting #2 SCHEDULE3 COMPENSATION Section 2 This document describes the basis for compensation and terms of payment. All rates presented apply to services rendered during calendar 2008 and will be adjusted annually thereafter. In addition to these fees, clients will also be responsible for any sales or value -added taxes that may apply to services performed. Hourly Rates: Charges for services provided will be in accordance with the following schedule: Classification Hourly Rate Support Staff $90 Analyst $133 Consultant $153 Sr. Consultant $189 Principal Consultant I $235 Principal Consultant II $255 Vice President $290 Other Direct Costs: All expenses incurred for a project, except in -house services specified below, from outside vendors will be invoiced at cost plus 10% to cover administrative expenses. These items may include, but are not limited to: shipping charges; printing; supplies; equipment; traveling expenses; special insurance; licenses; permits; subcontractors or Web Hosting — a schedule of monthly web hosting rates is available for client access web sites. 2008 Pricin Guideline and Polic Confidential Proprietary InformationF 9 y Do Not Copy or Release SCHEDULE4 COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION SUPPLEMENTAL QUESTIONNAIRE SCHEDULE 4 COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION SUPPLEMENTAL QUESTIONNAIRE TO BE ANSWERED BY ANY BUSINESS PERFORMING SERVICES FOR THE CITY OF PUEBLO Pursuant to section 24 -51- 1101(2), C.R.S., salary or other compensation from the employment, engagement, retention or other use of a person receiving retirement benefits (Retiree) through the Colorado Public Employees Retirement Association (PERA) in an individual capacity or of any entity owned or operated by a PERA Retiree or an affiliated party by the City of Pueblo to perform any service as an employee, contract employee, consultant, independent contractor, or through other arrangements, is subject to employer contributions to PERA by the City of Pueblo. Therefore, as a condition of contracting for services with the City of Pueblo, this document must be completed, signed and returned to the City of Pueblo: (a) Are you, or do you employ or engage in any capacity, including an independent contractor, a PERA Retiree who will perform any services for the City of Pueblo? Yes — , No � - (b) If you answered yes to (a) above, please answer the following question: Are you an individual, sole proprietor or partnership, or a business or company owned or operated by a PERA Retiree or an affiliated party? Yes No _. If you answered yes please state which of the above entities best describes your business: (c) If you answered yes to both (a) and (b), please provide the name, address and social security number of each such PERA Retiree. Name Address Name Address Social Security Number Social Security Number (If more than two, please attach a supplemental list) Failure to accurately complete, sign and return this document to the City of Pueblo may result in your being denied the privilege or doing business with the City of Pueblo. If you answered yes to both (a) and (b), you agree to reimburse the City of Pueblo for any employer contribution required to be paid by the City of Pueblo to PERA for salary or other compensation paid to you as a PERA Retiree or paid to any employee or independent contractor of yours who is a PERA Retiree performing services for the City of Pueblo. You further authorize the City of Pueblo to deduct and withhold all such contributions from any moneys due or payable to you by the City of Pueblo under any current or future contract or other arrangement for services between you and the City of Pueblo. Signed 20 LO For purposes of responding to question (b) above, an affiliated party includes (1) any person who is the named beneficiary or cobeneficiary on the PERA account of the PERA Retiree; (2) any person who is a relative of the PERA Retiree by blood or adoption to and including parents, siblings, half - siblings, children, and grandchildren; (3) any person who is a relative of the PERA Retiree by marriage to and including spouse, spouses parents, stepparents, stepchildren, stepsiblings, and spouses siblings; and (4) any person or entity with whom the PERA Retiree has an agreement to share or otherwise profit from the performance of services for the City of Pueblo by the PERA Retiree other than the PERA Retirees regular salary or compensation. CERTIFICATE OF AUTHORITY At a duly authorized meeting of the Board of Directors of Malcolm Pirnie, Inc. held on April 10, 2008, it was VOTED that Rick Giardina, Vice President of this company, be and he hereby is authorized to execute contracts and bonds in the name and on behalf of said company, and affix its corporate seal hereto; and such execution of any contract or obligation on this company's name on its behalf by such Vice President under seal of the company, shall be valid and binding upon this company. A True Copy, ATTEST: Gerard P. Cavaluzzi TITLE: Vice President and Assistant Secretary PLACE OF BUSINESS: 104 Corporate Park Drive Whine Plains, New York 10602 DATE OF THIS CONTRACT: `7 l Q t l a`7, (�0� I hereby certify that I am the Vice President and Assistant Secretary of Malcolm Pirnie, Inc., that Rick Giardina is a duly elected Vice President of said company, and that the above vote has not been amended or rescinded and m s in full force and effect as of the date of the contract. Assistant Secretary Corporate Seal: STATE OF NEW YORK ) COUNTY OF WESTCHESTER) ss.: Signed before me this day of / 2008. NOTARY PUBLIC Christine Newman Notary Pubic, State of New York NOOINE6139596 OudnW in Westchester County Commission Expires 01109 / 2010