HomeMy WebLinkAbout10171ORDINANCE NO. 10171
AN ORDINANCE APPROVING A PROFESSIONAL SERVICES
AGREEMENT IN AN AMOUNT NOT TO EXCEED $54,042
BETWEEN THE CITY OF PUEBLO AND RAFTELIS FINANCIAL
CONSULTANTS, INC. FOR THE FINANCIAL CAPACITY REPORT
WHEREAS, the Pueblo Wastewater Department operates a Water Reclamation Facility
providing municipal wastewater treatment; and
WHEREAS, the Water Quality Control Commission approved the Discharger Specific
Variance, June 2018; and
WHEREAS, the City is obligated to comply with the requirements of the Discharger
Specific Variance; and
WHEREAS, Raftelis Financial Consultants, Inc. is the rate consultants of record and
completed the previous financial capacity evaluation for the City of Pueblo’s discharger specific
variance for selenium and sulfate, and the most qualified to perform the follow up evaluation of
the financial capacity to serve the Pueblo Wastewater Department; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement for Professional Services by and between Pueblo, a Municipal
Corporation, and Raftelis Financial Consultants, Inc., 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.
Work performed under this Agreement includes review and update the financial capacity
of the City of Pueblo used for the discharger specific variance in 2018.
SECTION 3.
Funds for payment for professional services under said Agreement shall be paid from
appropriated funds budgeted in the City’s 2022 Budget from the Sewer User Fund.
SECTION 4.
The Mayor is authorized to execute and deliver the Agreement on behalf of Pueblo,
a municipal corporation, acting by and through its Wastewater Enterprise.
SECTION 5.
The officers and staff of the City are authorized to perform any and all acts consistent
with the intent of this Ordinance and the attached Agreement, to implement the policies and
procedures described therein.
SECTION 6.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on April 25, 2022 .
Final adoption of Ordinance by City Council on May 9, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on May 11, 2022 .
□ Disapproved on based on the following objections:
_
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
City Clerk
City Clerk’s Office Item # R-4
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: April 25, 2022
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Andra Ahrens, Interim Wastewater Director
SUBJECT: AN ORDINANCE APPROVING A PROFESSIONAL SERVICES AGREEMENT IN
AN AMOUNT NOT TO EXCEED $54,042 BETWEEN THE CITY OF PUEBLO
AND RAFTELIS FINANCIAL CONSULTANTS, INC. FOR THE 2022 FINANCIAL
CAPACITY STUDY
SUMMARY:
This Ordinance accepts an agreement between the City and our Rate Consultant of Record,
Raftelis Financial Consultants, Inc. for professional services associated with providing an update
to the 2018 Financial Capacity Report
PREVIOUS COUNCIL ACTION:
Resolution No. 13214 awarded an agreement between the City of Pueblo and Raftelis Financial
Consultants, Inc., and named Raftelis Financial Consultants, Inc. as the Rate Consultants of
Record for the Pueblo Wastewater Department, on April 27, 2015.
BACKGROUND:
As part of the selenium and sulfate discharger specific variance conditions, the City of Pueblo
must a complete an update to the financial capacity report that was submitted as part of the 2018
Regulation 32 Arkansas Basin hearing. The update will be used to determine if the economic
conditions are the same in the City of Pueblo as in 2018 or if the City of Pueblo has the financial
capacity changed since that time to install treatment for selenium and sulfate. The attached
professional services agreement between the City and Raftelis Financial Consultants, Inc.
provides for the required financial capacity update for the discharger specific variance.
FINANCIAL IMPLICATIONS:
Funding for the professional services related to the financial capacity study are available from the
Sewer User Fund.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
The no-action alternative would be a violation of the variance and could be enforced on by the
Colorado Department of Public Health and Environment.
RECOMMENDATION:
Approve
Attachments:
An agreement for Professional Services between the City of Pueblo and Raftelis Financial
Consultants, Inc. with of the Scope of Work.
DocuSign Envelope ID: 13C46318-6C0D-4CEB-AB28-213C77537378
AGREEMENT FOR PROFESSIONAL SERVICES
BY AND BETWEEN
CITY OF PUEBLO
AND
RAFTELIS FINANCIAL CONSULTANTS, INC.
THIS AGREEMENT is made and entered this 10th day of May , 2022, by and between Pueblo, a
Municipal Corporation (hereinafter referred to as "Client")and Raftelis Financial Consultants, Inc., a North Carolina
corporation authorized to do business in the State of Colorado (hereinafter referred to as "Consultant") for
Consultant to render professional financial consulting and related ancillary services for Client with respect to Project
22a-017, 2022 Financial Plan Update and EPA Financial Assessment, hereinafter referred to as the "Project." In
consideration of the mutual covenants hereinafter set forth,the parties agree as follows:
SECTION I. GENERAL AND SCOPE OF SERVICES
(a) Consultant shall satisfactorily perform the consulting services for the Project described in more detail
in Schedule I attached hereto and incorporated herein by reference (the "Scope of Services"). Such services shall
include all usual and customary professional financial consulting services including any required reports, plans,
assessments,etc.
(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 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 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. Except to the extent the parties agree to time extensions for delays beyond the control of
Consultant,Consultant shall complete all work prior to December 31,2022 and perform work in a timely manner so as
not to delay Client's timetable for achievement of interim tasks and final completion of Project work.
(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)
22a-017 Raftelis Financial Consulting Agreement Page I of 15
DocuSign Envelope ID: 13C46318-6COD-4CEB-AB28-213C77537378
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 2 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.$54,042.00,computed as set forth in Schedule 2.
(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 2 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 2.
(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 extended beyond December 31, 2022 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$5000 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.
(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, when all information
reasonably necessary for Client to responsibly render a decision has been furnished. 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 is not within the
custody or control of Client but must be procured from others.
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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,work product 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 2 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 to Client or(b)payment at the
rates specified in Schedule 2 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 I(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,which consent may be granted or withheld in Client's sole and absolute discretion and
(ii)in full compliance with the requirements of this Agreement and applicable federal regulations.
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).
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DocuSign Envelope ID: 13C46318-6COD-4CEB-AB28-213C77537378
(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. The Consultant shall secure and maintain during
the period of this agreement/contract and for such additional time as work on the project is being performed,
Commercial General Liability Insurance issued to and covering the liability of the Consultant with respect to all
work performed by him and all his subcontractors under the agreement/ contract, to be written on a
comprehensive policy form. This insurance shall be written in amounts not less than $1,000,000 for each
occurrence and aggregate for personal injury including death and bodily injury and $1,000,000 for each
occurrence and aggregate for property damage. This policy of insurance shall name the City of Pueblo, its
agents,officers and employees as additional insureds. This policy shall have all necessary endorsements to
provide coverage without exclusion for explosion and collapse hazards,underground property damage hazard,
blanket contractual coverage,as well as Owner's and Contractor's Protective Liability(OCP)coverage. The
policy shall also provide coverage for contractual liability assumed by Consultant under the provisions of the
Agreement/Contract,and"Completed Operations and Projects Liability"coverage.
(iii) Professional Liability Insurance with coverage of not less than$1,000,000 in a form and with
a deductible acceptable to owner.
(iv) Comprehensive Automobile Liability Insurance. The Consultant shall procure and maintain
during the period of the agreement/contract and for such additional time as work on the project is being
performed, Comprehensive Automobile Liability Insurance. This insurance shall be written with limits of
liability for and injury to one person in any single occurrence of not less than$350,000 and for any injury to
two or more persons in any single occurrence of not less than $1,000,000. 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 site of the project of 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. 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 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.
22a-017 Raftelis Financial Consulting Agreement Page 4 of 15
DocuSign Envelope ID: 13C46318-6COD-4CEB-AB28-213C77537378
SECTION 10. 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, City of Pueblo Wastewater
Department,Attention: Andra Ahrens, 1300 S.Queens Ave., Pueblo,CO 81001 or to Consultant, Raftelis Financial
Consultants,Inc.,227 West Trade Street,Suite 1400,Charlotte,NC 28202. 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.In the case of any conflict between the terms of this Agreement for Professional Services and terms of Schedule 1
or any other attachment hereto,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 in
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 of this Agreement shall be decided in
a state court of competent jurisdiction located in Pueblo,Colorado.
(0 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 ensure 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 11. STATE-IMPOSED MANDATES PROHIBITING WORKERS WITHOUT AUTHORIZATION
FROM PERFORMING WORK
(a) At or prior to the time for execution of this Contract,Consultant shall submit to the Purchasing Agent
of the City its certification that it does not knowingly employ or contract with a"Worker Without Authorization",as that
term is defined within§8-17.5-101 (9),C.R.S.(herein"Worker Without Authorization"), who will perform work under
this Contract and that the Consultant will participate in either the"E-Verify Program"created in Public Law 208, 104th
Congress,as amended and expanded in Public law 156, 108th Congress,as amended,that is administered by the United
States Department of Homeland Security or the"Department Program"established pursuant to section 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.
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(b) Consultant shall not:
(i) Knowingly employ or contract with a Worker Without Authorization to perform work
under this Contract;
(ii) Enter into a contract with a subcontractor that fails to certify to Consultant that the
subcontractor shall not knowingly employ or contract with a Worker Without Authorization to
perform work under this Contract.
(c) The following state-imposed requirements apply to this Contract:
(i) The Consultant 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 Consultant is prohibited from using either the E-Verify Program or Department Program
procedures to undertake pre-employment screening of job applicants while this Contract is being
performed.
(iii) If the Consultant obtains actual knowledge that a subcontractor performing work under this
contract knowingly employs or contracts with a Worker Without Authorization to perform work under
this Contract,the Consultant shall be required to:
A. Notify the subcontractor and the Purchasing Agent of the City within three(3)days
that the Consultant has actual knowledge that the subcontractor is employing or contracting with a
Worker Without Authorization;and
B. Terminate the subcontract with the subcontractor if within three (3) days of
receiving the notice required pursuant to subparagraph(c)(iii)A. above,the subcontractor does not
stop employing or contracting with the Worker Without Authorization ; except that the Consultant
shall not terminate the contract with the subcontractor if,during such three(3)days,the subcontractor
provides information to establish that the subcontractor has not knowingly employed or contracted
with a Worker Without Authorization.
(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 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 City's actual and consequential damages.
(e) Nothing in this Section shall be construed as requiring the Consultant to violate any terms of
participation in the E-Verify Program.
SECTION 12. PERA LIABILITY
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 Consultant shall fill out the
Colorado PERA Questionnaire attached hereto and submit the completed form to City as part of the signed Agreement.
(Signature section on following page.)
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DocuSign Envelope ID: 13C46318-6COD-4CEB-AB28-213C77537378
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 RAFTELIS FINANCIAL CONSULTANTS, INC.
r DocuSigned by: , DocuSigned by:
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Naomi Hedden, Director of Purchasing Todd Cristo, Senior Manager
DocuSigned by:
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BALANCE OF APPROPRIATION EXISTS FOR THIS CONTRACT AND FUNDS ARE AVAILABLE.
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Director of Finance
APPROVED AS TO FORM:
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City Attorney
Attachments: Schedule 1: Scope of Services
Schedule 2: Fee Schedule
Additional Information for Agreement
22a-017 Raftelis Financial Consulting Agreement Page 7 of 15
SCHEDULE 1
Scope of Services
Excerpt from Proposal to the City of Pueblo dated March 21,2022,pages 1 -3
2022 Financial Plan Update and EPA Financial Assessment
Basic Services
Raftelis will complete the following Basic Services to update the City's wastewater financial plan
and complete the Environmental Protection Agency's(EPA)Financial Capability Assessment
(FCA). This includes analysis of the relative affordability services excluding and including
Selenium mitigation requirements required by the EPA and the Colorado Department of Public
Health and Environment (CDPHE). Raftelis will use the City's existing financial planning model
to complete the Basic Services. If requested. Raftelis will develop a separate financial planning
model as an optional service.
Task 1—Project Orientation
a. Data Request. Provide data request list detailing information needed to complete study.
b. Project Orientation Workshop. Meet with City representatives to review data request list
status. discuss pertinent City policies. confirm study objectives and expectations,and
finalize study schedule.
Task 2—Financial Plan Update
a. Revenue under Existing Rates. Determine revenue from existing 2022 rates for the 11-
year forecast period 2022 through 2032.
b. Revenue under Adopted Rates. Deteinune revenue under adopted 2022—2024 rates for
the 11-year forecast period 2022 through 2032.
c. Revenue from Miscellaneous Charges. Determine revenue from plant investment fees
and sanitary sewer collection fees. and other miscellaneous revenue sources during
forecast period.
d. Operating Expense Projections. Project operation and maintenance expenses(O&M)
based on:
o Line-item budget and cost trends
o Rates of growth
o Changes in personnel and salary requirements
o Changes in operations
e. Capital Improvement Program Funding. Identify sources of funds applicable to the
capital improvement program(CIP)that result in lowest impact on utility rates. Separate
CIP into collection system and treatment plant projects.
f. Revenue Requirements. Project revenue requirements including O&M,debt service. and
routine and major capital improvements for each year of forecast period.
Q. Financial Plan Scenarios. Prepare up to three(3)cash flow scenarios that vary the tuning
and amount of revenue adjustments needed to meet revenue requirements.maintain debt
service coverage and adequate reserves. and fund the CIP.
h. Financial Plan Workshop. Facilitate one(1)meeting with City representatives to review
findings of financial plan.
22a-017 Raftelis Financial Consulting Agreement Page 8 of 15
Task 3—EPA Financial Capacity Assessment
a. Identify-available census and City data to support analysis. previous City analysis on
income and other available demographic information to support the wastewater bill
affordability assessment.
b. Evaluate affordability of wastewater utility services using EPA guidelines documented in
the CSO Guidelines for Financial Capacity Assessment and Schedule Development
issued in 1997,updated in 2014. and augmented the Proposed 2022 Clean Water Act
Financial Capability Assessment Guidance.
a. Current residential bill as a percent of City-wide median household income
(MHI)
b. Forecasted residential bill as a percent of forecasted City-wide MI-II that excludes
Selenium mitigation capital improvements, debt service and O&M using
forecasts future requirements and projected increases to rates over the 11-year
forecast period developed in Task 2.
c. Forecasted residential bill as a percent of forecasted City-wide MHI that includes
Selenium mitigation capital improvements. debt service and O&M using
forecasts future requirements and projected increases to rates over the 11-year
forecast period developed in Task 2.
d. Include other metrics as necessary such as the Financial Capability Indicator
(FC'I)and:or the Lowest Quintile Poverty Indicator(LQPI)
c. Evaluate secondary financial capacity indicators the current bill and forecasted bills
excluding and including Selenium mitigation capital projects. Secondary factors will use
an EPA rating criteria of Strong(3). Mid-Range (2) and Weak (1)for capacity areas as
follows:
a. City bond rating for revenue bonds(if recent issue is available)and General
Obligation Bonds
b. Overall net debt as a percent of full market property value
c. Unemployment rate
d. City MHI relative to the United States MHI
e. Property tax as a percent of full market property value
f Property tax revenue collection rate
g. Historical and projected population trends
h. Household size. including household size with incomes in the Lowest Quintile
d. The results of the assessment will be document in a technical memorandum. Raftelis will
issue one(1)draft technical memorandum and one(1) final technical memorandum
incorporating City feedback and comments. It is anticipated that the final document will
be incorporated as an appendix to the report completed in Task 4. but may also serve as a
stand-alone document.
e. Financial Capacity Workshop. Facilitate one(1)meeting with City representatives to
review Task 3 findings and draft technical memorandum.
22a-017 Raftelis Financial Consulting Agreement Page 9 of 15
Task 4—Reports
a. Draft Report. Prepare one(1)version of draft report that documents study assumptions.
procedures. findings and reconmiendations.
b. Final Report. Prepare final report to reflect comments received from City staff.
(Continue to next page.)
22a-017 Raftelis Financial Consulting Agreement Page 10 of 15
SCHEDULE 2
Fee Schedule
Excerpt from Proposal to the City of Pueblo dated March 21,2022,pages 1 -3
Fee Estimate
Raftells will complete the Basic Services tasks for a not-to-exceed fee of$54.042. Our fee
nleludes labor costs using on our standard hourly billing rates(Exhibit 3)and direct expenses_ at
cost. The following tabulation shows the fee and hours by task.
Task Description Hours Cost
1. Project Orientation 37 $8.125
2. Financial Plan 54 12.200
3. Financial Capacity Assessment 89 20.345
4. Reports 54 13.371
Total 255 S54,042
•
Hourly Fee Schedule
Hourly
Position Billing Rate
Executive Vice President $350
Principal Consultant $275
Senior Manager $285
Manager $250
Senior Consultant $220
Consultant $190
Associate $160
Administration $S5
Technology'Conununications Charge`31 $10
(a) Applicable to each hour worked on the project to recover
telephone.facsimile.computer.postage overnight delivers-.
conference calls.electronic computer webinars.photocopies.etc.
22a-017 Raftelis Financial Consulting Agreement Page 11 of 15