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HomeMy WebLinkAbout11833RESOLUTION NO. 11833 A RESOLUTION APPROVING AN AGREEMENT IN THE AMOUNT OF $30,250.00 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. SFrTinN 9 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 an amount not to exceed $30,250.00 shall be paid from appropriated and unencumbered funds budgeted in the City's 2010 Budget from the Sewer User Fund. INTRODUCED: March 22, 2010 BY: Vera Ortegon COUNCILPERSON APPROVED: RESIDENT CF CITY CC) UNCIL ATTESTED BY: GIB' Y CLERK L) 4 Background Paper for Proposed RESOLUTION AGENDA ITEM # M -1 DATE: March 22, 2010 DEPARTMENT: WASTEWATER Gene Michael, Director TITLE A RESOLUTION APPROVING AN AGREEMENT IN THE AMOUNT OF $30,250.00 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 $30,250.00 with the Red Oak Consulting for professional services associated with reviewing sanitary sewer rates? Approval of Resolution BACKGROUND The Municipal Code requires that sanitary sewer rates be reviewed no less often than every two years. Red Oak Consulting was selected as the City's wastewater rate consultant of record through a competitive bid process. A copy of the agreement with Red Oak Consulting for the 2010 wastewater rate review is attached. FINANCIAL IMPACT Funds for the 2010 wastewater rate review are available from the Sewer User Fund and were appropriated in the 2010 budget. AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is made and entered this 22nd day of March , 2010 , by and between the In City of Pueblo, a Municipal Corporation ( "Client ") and Malcolm Pimie. c., a New York corporation doing 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 2010 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 Exhibit 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. In the event this Agreement follows the selection of Consultant by Client pursuant to a Request for Proposals, or RFP, all of the requirements of that Request for Proposal or RFP are incorporated herein by reference, unless any requirement is expressly excluded in Exhibit 1. (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 or subconsultants as it is for services performed directly by Consultant or Consultant's employees. (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 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 Clients 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 Exhibit 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 Exhibit 1 or otherwise contemplated by the temms 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 ofsuch 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 Exhibit 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. _ 30,250.00 , computed as set forth in Exhibit 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 Exhibit 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 Exhibit 3. (d) No compensation shall be paid to Consultant for services required and expenditures incurred in correcting Consultants 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 RESPONSIBILPfIES (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 famished 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 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 Exhibit 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 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 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 Exhibit 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. 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. INSURAN 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 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 ofproperty 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. The Workers' Compensation Insurance policy shall contain an endorsement waiving subrogation against the Client. (ii) Commercial General Liability Insurance issued to and covering the liability of Consultant with respect to all work performed by Consultant and its subcontractors and subconsultants under this Agreement, to be written on a Commercial General Liability policy form CG 00 01, with coverage limits of 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. This CGL policy shall be endorsed naming the Client, its officers, agents and employees as additional insureds. This CGL policy shall also provide coverage for contractual liability assumed by Consultant under the provisions of this Agreement. (iii) Professional Liability Insurance with coverage of not less than $1,000,000, and with a deductible of not more than $ 25,000.00. (iv) Comprehensive Automobile Liability Insurance effective during the period of the Agreement, and for such additional time as work on the Project is being performed, written with limits of liability for injury to one person in any single occurrence of not less that $150,000 and for any injury to two or more persons in any single occurrence of not less than $600,000. This insurance shall include uninsured/underinsured motorist coverage and shall protect the Consultant from any and all claims arising from the use both on and off the Project site of motor vehicles, including any automobiles, trucks, tractors, backhoes and similar equipment whether owned, leased, hired or used by Consultant. (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. SU BCONTRACTS. (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 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 —4— 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: 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 . Eitherpartymay 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. In the case of any conflict between the terms of this Agreement for Professional Services and the terms of any attachment or Exhibit to this Agreement, the terms of this Agreement shall govern. (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, which consent may be withheld at Client's sole and absolute discretion. Any assignment or attempted assignment in violation of this subsection shall be void. (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 ofthis Agreement shall be decided in a state court of competent jurisdiction located in Pueblo, Colorado. M Equal Employment 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, 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. —5— SECTION 12. STATE - IMPOSED MANDATES PROHIBITING ILLEGAL ALIENS FROM PERFORMING WORK (a) At or prior to the time for execution of this Agreement (which may be referred to in this section as this "Contract "), Consultant (which may be referred to in this section as "Contractor ") shall submit to the Purchasing Agent of City its certification that it does not knowingly employ or contract with an illegal alien who will perform work under this Contract and that the Contractor will participate in either the "B- Verify 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 or the "Department Program" established pursuant to §8- 17.5- 102(5)(c) C.R.S. that is administered by the Colorado Department of Labor and Employment in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under this Contract. (b) Contractor shall not: (I) Knowingly employ or contract with an illegal alien to perform work under this contract; (II) Enter into a contract with a subconsultant that fails to certify to Contractor 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: (I) The Contractor shall have confirmed the employment eligibility of all employees who are newly hired for employment to perform work under this Contract through participation in either the E- Verify Program or Department Program (II) The Contractor is prohibited from using either the E -Verify Program or Department Program procedures to undertake pre - employment screening ofjob applicants while this Contract is being performed. (III) If the Contractor obtains actual knowledge that a subcontractor or subconsultant performing work under this Contract knowingly employs or contracts with an illegal alien, the Contractor shall be required to: A. Notify the subconsultant and the Client's Purchasing Agent within three (3) days that the Contractor has actual knowledge that the subcontractor /subconsultant is employing or contracting with an illegal alien; and B. Terminate the subcontract with the subcontractor / subconsultant if within three (3) days of receiving the notice required pursuant to subparagraph (c)(III)A. above the subcontractor /subconsultant does not stop employing or contracting with the illegal alien; except that the Contractor shall not terminate the contract with the subcontractor / subconsultant if, during such three (3) days, the subcontractor / subconsultant provides information to establish that the subcontractor / subconsultant has not knowingly employed or contracted with an illegal alien. (IV) The Contractor 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 Contractor shall constitute a breach of contract and grounds for termination. ht the event of such termination, the Contractor shall be liable for Client's actual and consequential M damages. (e) As used in this Section 12, the terns "subcontractor' and "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. Consultant 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. —7— IN WI'T'NESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written. CITY OF PUEBLO, A MUNICIPAL ICIPAL CORPORATION By Rswtc.wc ') . &i Pr esident of the City Council /:�77:Ti1%117:bylYi]9[� 7��F City Attorney CONSULTANT: Malcolm Pimie, Inc. By: Name: Richard Giardina, Vice President Title: Malcolm Pimie, Inc. W13 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 ATTEST: City Clerk President of the City Council By APPROVED AS TO FORM: City Attorney CONSULTANT: M aOLM RN IIIE,�IN)C ,�{ J Name: Richard D. Giardina Title: Vice President 11 C It 4'' PATHWAYS TO LASTING SOLUTIONS ®` CONSULTING .. A DIVISION OF MALCOLIA "RNIF Exhibit 1 City of Pueblo, CO Basic Scope of Services 2010 Wastewater Financial Plan and Rate Services BASIC SCOPE OF SERVICES This section presents a detailed description of the tasks that comprise the Basic Scope of Services that Red Oak shall undertake to update the City's wastewater financial plan and rates. 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 — Linking Annual Revenue Adjustments 2.1 Annual Revenue Increase Link. The City wishes to evaluate linking annual wastewater revenue adjustments to the Pueblo Board of Water Works (Board) annual revenue adjustments. Red Oak will survey surrounding Colorado utilities for practices or policies where parity between the two utilities is maintained. 2.2 Pueblo Board of Water Works Rate Practices. Red Oak will contact the Board to discuss their annual financial planning rate making practices and basis for proposed increases. 2.3 Technical Memorandum. Red Oak will prepare a memorandum summarizing the results of the survey and document the general rate making practices used by the Board. This memorandum will also compare the rate making practices of the Board and the City's wastewater utility. Task 3.0 — Financial Plan and Rate Update 2.4 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 2010 through 2019. 100 Fillmore Slrecl . Unit 200 , Uenvor, CO 802013 - T 303-316 6500 • F 303 -316 -6599 • .ra JOakconsul0 T1 L'T'Ar PATHWAYS TO LASTING SOLUTIONS CONSULTING u fe A DIVISION Or MAICOLIA PIPNIE 2.5 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. Deternune 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 2.6 Capital Improvement Program Funding. Red Oak will revise the CIP 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 up to 3 CIP scenarios to include in the cash flow analysis. 2.7 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. 2.8 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. Included in this analysis will be a cash flow using existing cash reserves on hand to fund capital projects. 2.9 Rates. Red Oak will update the components of the existing rate structure to ensure revenue from proposed rates meet annual revenue requirements for the period 2010 through 2019. 2.10 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. Red Oak will document changes and updates from Staff and re -issue the technical memorandum to account for these changes. A total of three versions of the memorandum will be provided. 2.11 Financial Plan and Rate Design Workshop. Attend two meetings with City representatives to review findings of financial plan and rate design. 2.12 Updated Financial Planning Model. Red Oak will provide an updated financial planning model to the City. Red Oak will assist City Staff with questions regarding modeling scenarios over the course of this study. 100 Flllmere Street • Unit 200 • Denvec CO 80203 • T 301316 -6500 , F 303 - 316-6599 = ww. reredo lting.ccm try t G' PATHWAYS TO LASTING SOLUTIONS 3 N I D °s, ®= CONSULTING A DIVISIDN OF MALCOLM PIRNIC 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 Staff meeting and City Council meetings to discuss and present findings over the course of the study. Red Oak anticipates a total of five meetings to be held during the study. This scope identifies the following five meetings: 1. Kickoff meeting (Task 1) 2. Financial plan and rate design workshop I (Task 3) 3. Financial plan and rate design workshop II (Task 3) 4. City Council workshop 5. City Council meeting 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 5 meetings stated in Task 3.2 ♦ Development of plant investment fees or sanitary sewer connection fees Project Cost Estimate 2010 Rate Consulting Services Task Hours Cost < Kickoff Meeting 18 2,996 Financial Plan & Rates 18 2,996 Linking Increases 108 16,732 Reporting and Council Meetings 36 6,966 Subtotal Labor 180 29,690 Travel 560 Total Project Costs $30,250 (1) Average meeting cost is $3,100. This includes attendance by 1 Red Oak Consultants, travel, and development of meeting presentation materials. 100 Pilimore Street , Unit 200 • Ue five r. CO 50206 + T 303 - 316 -6500 • P 303 -316 -6599 6 vn� 11 C'1'�11� PATHWAYS TO LASTING SOLUTIONS CONSULTING A DIVISION OF MALCOLM PIq Nir Exhibit 2 Project Schedule City of Pueblo, CO 2010 Wastewater Financial Plan and Rate Services Red Oak to attend project kickoff meeting Aril 2010 Financial plan technical memorandum and workshop I with City Staff May 2010 Financial plan workshop 11 with City Staff June 2010 City Council workshop to present study components. July 2010 Red Oak to present study findings at City Council Meeting August 2010 10 copied of final report summarizing findings and recommendations. September 2010 . 10D Fi I Inw. Street • Unil 200 < I]e nver. GO 80206 • T 303 -316 -6500 o F 303 - 316 -6599 o y redoakcongulllna.com ` r T'fl"1r,� E , }. PATHWAYS TO LASTING SOLUTIONS CONSULTING A DIVISION DI MALCOLM PIPNIC Exhibit 3 Hourly Fees City of Pueblo, CO 2010 Wastewater Financial Plan and Rate Services Classification Rate $ per hour Vice - President $290.00 Principle Consultant II 255.00 Principle Consultant 1 240.00 Senior Consultant 195.00 Consultant 158.00 Analyst 137.00 Support Staff 90,00 100 Filimore Street o Unit 200 < DenveG CID 50266 = T 303 -316 -6500 a F 303-316 6599 o Iwr w.reAmkconsullinQ . com Exhibit 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_ (Must sign below whether you answer')Ies "or "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 Address Social Security Number Social Security Number (If more than two, please attach a supplemental list) 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. 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. Signed , 20 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, spouse's parents, stepparents, stepchildren, stepsiblings, and spouse's 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 Retiree's regular salary or compensation.