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HomeMy WebLinkAboutContracts & Agreements_90-2002_CCv0001.pdf AGREEMENT TO FURNISH PROFESSIONAL SERVICES FOR THE PERFORMANCE OF A UPDATE TO THE OUTSIDE CITY WATER AND WASTEWATER RATE SURCHARGES This Agreement is made and entered into this 18th day of June 2002 by and between the City of Redlands, a municipal corporation (hereinafter "City') and Black & Veatch Corporation (hereinafter"Consultant"). In consideration of the mutual promises, covenants and conditions hereinafter set forth, City and Consultant hereby agree as follows: ARTICLE I - ENGAGEMENT OF CONSULTANT 1.1 City hereby engages Consultant, and Consultant hereby accepts the engagement, to perform services ("Services") for An Update to the City's Outside City Water and Wastewater Surcharges ("Project"), for the City of Redlands, California. 1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide high quality Services for the Project at the level of competency presently maintained by other practicing professional Consultants in the industry providing similar types of services. ARTICLE 2 _.SERVICES OF CONSULTANT 2.1 The specific Services which Consultant shall perform are more particularly described in Attachment "A," entitled "Scope of Services," which is attached hereto and incorporated herein by this reference. 2.2 Consultant hereby agrees to abide by all applicable Federal, State and local rules, laws and regulations in the performance of this agreement including but not limited to all applicable Labor code and prevailing wage laws. ARTICLE I) - RESPONSIBILITIES OF CITY 3.1 City shall make available to Consultant information in its possession that is pertinent to the performance of Consultant's Services. 3.2 City will provide access to and make provisions for Consultant to enter upon City-owned property or nights-of-way as required by Consultant to perform the Services. Outside City Surcharge Update Agreement June 18, 2002 Page 2 3.3 City designates Douglas Headrick as Project Manager, to act as its representative with respect to the Services to be performed under this Agreement. ARTICLE 4 - PERIOD OF SERVICE 4.1 Consultant shall perform the Services in a diligent manner and in accordance with the schedule set forth in Attachment "B", entitled "Project Schedule". ARTICLE 5 - PAYMENTS TO THE CONSULTANT 5.1 The total compensation for Consultant's performance of Services shall not exceed the amount of$15,000. City shall pay Consultant on a time and materials basis up to the not to exceed amount, in accordance with Attachment "C", entitled "Project Fee", based on the hourly rates shown in Attachment"D", entitled"Rate Schedule". 5.2 Consultant shall bill City within ten days following the close of each month by submitting an invoice indicating the Services performed, who performed the services, indirect costs, and the detailed cost of all Services, including backup documentation. Payments by City to Consultant shall be made within 30 days after receipt and approval of Consultant's invoice,by warrant payable to Consultant. 5.3 All contractual notices, bills and payments shall be made in writing and may be given by personal delivery or by mail. Notices, bills and payments sent by mail shall be addressed as follows: CiIY Consultant Douglas Headrick Black &Veatch Corporation Municipal Utilities Department 201 S. Lake, Suite 803 35 Cajon Street Pasadena, CA 91101 P. O. Box 3005 Redlands CA 92373 When so addressed, such notices shall be deemed given upon deposit in the United States Mail. In all other instances, notices, bill and payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to whom notices, bills, and payments are to be given by giving notice pursuant to this paragraph. Outside City Surcharge Agreement June 18, 2002 Page 3 ARTICLE 6 - INSURANCE AND INDEMNIFICATION 6.1 Consultant's Insurance to be Primary All insurance required by this Agreement is to be maintained by Consultant for the duration of this Project and shall be primary with respect to City and non-contributing to any insurance or self-insurance maintained by the City. Consultant shall provide City with Certificates of Insurance and endorsements evidencing such insurance within fifteen (15) days of execution of this Agreement, or prior to commencement of work, whichever occurs first. 6.2 Workers' Compensation and Employer's Liability A. Consultant shall secure and maintain Workers' Compensation and Employer's Liability insurance throughout the duration of this Agreement in an amount which meets the statutory requirement with an insurance carrier acceptable to the City. Such insurance shall be primary and non-contributing to any insurance or self- insurance maintained by the City. The insurance policy shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to City. Certificates of Insurance shall be delivered to City within fifteen (15) days of execution of this Agreement or prior to commencement of work, whichever occurs first. B. Consultant expressly waives all rights to subrogation against the City, its officers, employees and volunteers for losses arising from work performed by Consultant for City by expressly waiving Consultant's immunity for injuries to Consultant's employees and agrees that the obligation to indemnify, defend and hold harmless provided for in this Agreement extends to any claim brought by or on behalf of any employee of Consultant. This waiver is mutually negotiated by the parties. This shall not apply to any damage resulting from the sole negligence of City, its agents and employees. To the extent any of the damages referenced herein were caused by or resulted from the concurrent negligence of City, its agents or employees, the obligations provided herein to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of Consultant, its officers, agents and employees. 6.3 Hold Harmless and Indemnification. Consultant shall indemnify, hold harmless and defend City and its elected officials, agents, and employees from and against any and all claims, losses or liability, including attorney's fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of Consultant, Outside City Surcharge Agreement June 18, 2002 Page 4 its officer, agents and employees in performing the Services required by this Agreement. Consultant's obligations under this provision shall not be limited in any way by any terms of this Agreement, or the insurance limits. 6.4 Assignment and Insurance. Consultant is expressly prohibited from subletting or assigning any of the services covered by this Agreement without the express written consent of City. In the event of mutual agreement between parties to sublet a portion of the Services, the Consultant will add the subcontractor as an additional insured and provide the City with the insurance endorsements prior to any work being performed by the subcontractor. Assignment does not include printing or other customary reimbursable expenses that may be provided in this Agreement. 6.5 Comprehensive General Liability Insurance. Consultant shall secure and maintain in force throughout the duration of the Agreement comprehensive general liability insurance with carriers acceptable to City. Minimum coverage of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate for public liability, property damage and personal injury is required. City shall be named as an additional insured and the insurance policy shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the City. Such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. Certificates of insurance and endorsements shall be delivered to City within fifteen (15) days of execution of this Agreement or prior to commencement of work, whichever occurs first. 6.6 Professional Liability Insurance. Consultant shall secure and maintain professional liability insurance throughout the duration of this Agreement in the amount of one million dollars ($1,000,000) per claim made. The consultant, in lieu of obtaining an endorsement extending the reporting period twelve (12) months beyond the current policy expiration date of May 1, 2003, will provide the City with a certificate of liability insurance and endorsement for the next twelve (12) month policy period of May 1, 2003 through May 1, 2004. Certificate of liability insurance and endorsement shall be delivered to City within fifteen (15) days of execution of this Agreement or prior to commencement of work, whichever occurs first. 6.7 Business Auto Liability Insurance. Consultant shall have business auto liability coverage, with minimum limits of one million ($1,000,000) per occurrence, combined single limit for bodily injury liability and property damage liability. This coverage shall include all consultant owned vehicles used on the project, hired and non-owned vehicles, and employee non-ownership vehicles. The City shall be named as an additional insured and a certificate of insurance shall be delivered to City within fifteen (15) days of Outside City Surcharge Agreement June 18, 2002 Page 5 execution of this Agreement or prior to commencement of work, whichever occurs first. ARTICLE 7 - GENERAL CONSIDERATIONS 7.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing party shall, in addition to any costs and other relief,be entitled to the recovery of its reasonable attorneys' fees. 7.2 Consultant shall not assign any of the Services required by this Agreement, except with the prior written approval of City and in strict compliance with the terms,provisions and conditions of this Agreement. 7.3 Consultant's key personnel for the Project are: Project Manager: Sudhir Pardiwala Consultant agrees that the key personnel shall be made available and assigned to the Project, and that they shall not be replaced without concurrence from City. 7A All documents, records, drawings, designs, costs estimates, electronic data files and databases and other Project documents developed by the Consultant pursuant to this Agreement and any copyright interest Consultant may have in said herein described documents, records and data shall become the property of City and shall be delivered to City upon completion of the Services or upon the request of City. Any reuse of such documents for other projects and any use of incomplete documents will be at City's sole risk. 7.5 Consultant is for all purposes an independent contractor. All personnel employed by Consultant are for its account only, and in no event shall Consultant or any personnel retained by it be deemed to have been employed by City or engaged by City for the account of or on behalf of City. 7.6 Unless earlier terminated, as provided for below, this Agreement shall terminate upon completion and acceptance by City of the Services. 7.7 This Agreement may be terminated by the City, without cause, by providing ten(10) days prior written notice to the Consultant (delivered by certified mail, return receipt requested) of intent to terminate. 7.8 Upon receipt of a termination notice, Consultant shall (1) promptly discontinue all services affected, and (2) deliver or otherwise make available to City, copies (in both Outside City Surcharge Agreement June 18, 2002 Page 6 hard copy and electronic form, where applicable), of any data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services required by this Agreement. 7.9 This Agreement, including the attachments incorporated herein by reference, represents the entire agreement and understanding between the parties and any prior negotiations, proposals or oral agreements are superseded by this Agreement. Any amendment to this Agreement shall be in writing, approved by the City Council of City and signed by City and Consultant. This Agreement shall be governed by and construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, duly authorized representatives of the City and Consultant have signed in confirmation of this Agreement. City of Redlands, Black &Veatch Corporation, ("City") ("Consultant") By: By: KARL N. (KASEY) HAWS Mayor Title: Senior Project Manager ATTEST: j -,J LoPoyzer City Clerk, City ofRedlands Attachment A Scope of Work The work effort for this project will focus on reviewing and establishing outside- City rates for the City's water and wastewater customers. The basis for establishing higher service charges for outside-City customers include the following: • Return on Rate Base — Inside-City customers have invested in assets (rate base)to provide water and wastewater services. In order to provide service to outside-City customers with these assets, inside-City customers are entitled to a return on their investment. • Depreciation of Assets — Depreciation of the same assets included in the Rate Base provides for the return of the invested capital to the investors. Inside-City customers are entitled to be reimbursed for the depreciation costs of their investment. It is expected that outside-city rates will be established based upon the same rate structure for inside City rates. Outside-city rates will be developed for wastewater service, water service. General and Administrative Task 1 —Project Management This project component includes general project coordination, staff direction, and administrative activities throughout the course of the project. Specific subtasks are: 1.1 Coordinate project activities among Black & Veatch staff and City staff. Provide direction to staff as required to meet project objectives and deadlines. Ensure adequate levels of staff and resources throughout the course of the project. Review all study-related work and provide overall quality assurance. 1.2 Perform general administrative duties, including client correspondence, billing, project documentation, and administer study control plan using BISNET. Determination of Outside-City Rates Task 2—Determination of Rate Base Component This task will involve the determination of the number of users and their water use and wastewater generation characteristics for outside-City customers to determine the rate base. Asset information will be compiled to determine the extent of the assets to provide service to outside-City customers. The following tasks will be performed. 2.1 Review customer data and determine the number of outside-City customers vs. inside-City customers, the amount of the wastewater generated and the amount of water consumption for both outside and inside-City customers. 2.2 Tabulate asset information and list year acquired, historical cost., accumulated and annual depreciation, and proportion of benefit of each asset to outside-City customers. This will establish the basis for the rate base costs. 2.3 Apply a return on the rate base that is acceptable by the Public Utilities Commission to determine a return on rate base for both the water and wastewater rate surcharges. Task 3 —Determination of Depreciation Component The depreciation component of the outside-City surcharge to water and waste-water customers is based upon the tabulation of assets in Task 2 above. Depreciation will decrease when an asset drops out of the rate base after it is completely depreciated. Since system assets genearally have long lives, it may be several years before depreciation decreases. Based upon the tabulation of the assets and the amount of depreciation from Task 2 above, the annual depreciation component for the portion of the water and wastewater assets is used in the calculation of the surcharge. Task 4—Calculation of Outside-City Rates Based upon the findings in Tasks 2 through 4 above, Black & Veatch will determine the amount of revenue to be collected from outside-City customers through the water and wastewater rate surcharges. It is expected that the surcharges will be applied using the same rate structure for inside-City rates. Project Schedule and Deliverables Black & Veatch has a strong track record of meeting client schedules and believe our prior experience in developing implementable outside-City rates will enable us to meet the City's schedule in an efficient manner. Task 5 —Meetings and Reports Black & Veatch will conduct one meeting with the City to review the status of the draft report. Changes and recommendations to the draft report from City staff will be incorporated into the final report to be distributed to the City no later than July 31,1, 2002. Five (5)copies of the final report will be provided to the City. Attachment B PROJECT SCHEDULE All services describe in Attachment A will be completed by July 31, 2002. ATTACHMENT C Project Fees Services will be provides on a salary cost basis. Tasks in this scope of work will be completed for a not to exceed amount of$15,000 including direct costs ATTACHMENT D RATE SCHEDULE Hourly Rates Black & Veatch proposes to provide the tasks identified in our Scope of Services at the hourly billing rates shown in the table below. These rates are at or below the current hourly rates charged by Black & Veatch for packaging state and federal loan applications. Hourly Billing Rate Project Manager..................... $170 Financial Analyst .................... $120 Word Processing...................... $45 Reimbursement of Direct Expenses Direct expenses are costs incurred in providing the services outlined in the proposed Scope of Services. Such expenses include such items as travel, technology charges, postage, long distance telephone, reproduction, etc.