HomeMy WebLinkAboutContracts & Agreements_40-1985_CCv0001.pdf STANDARD FORM OF A(71LEMENT
BETWEEN
OWNER AND ENGINEER
FOR
PROFESSIONAL STUDY AND REPORT SERVICES
CITY OF REDLANDS
SEWER RATE STUDY
THIS 'IS AN AGREEMENT made as of the Seventeenth day of
December in the year Nineteen Hundred and Eighty Five by and between the
City of Redlands (hereinafter called OWNER) and Camp Dresser & McKee Inc.
(hereinafter called ENGINEER) .
OWNER wishes ENGINEER to perform professional engineering services, to
serve as OW ER's professional engineering representative, and to provide
professional engineering consultation and advice for a professional fee (as
set forth below) for a sewer rate study (hereinafter called Assignment) .
SECTION 1. BASIC SERVICES TO ENGINEER
1.1 ENGINEER shall perform the following professional services:
1.1.1 Consult with OWNER to clarify and define OWNER's require-
ments relative to the Assignment and review available data.
1.1.2 Advise OWNER as to the necessity of OW ER' s providing or
obtaining from others special services and data required in
connection with the Assignment (which services and data
ENGINEER is not to provide hereunder but on which ENGINEER
may rely in performing services hereunder) , and act as
OWNER' s representative in connection with any such services
of others.
1.1.3 Prepare a final study report of ENGINEER' s findings and
reco,,wendations, furnish twenty-five (25) copies to OWNER,
and present it in person and review it with OWNER.
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1.2 The duties and responsibilities of ENGINEER described above are
supplemented and amended as indicated in Paragraph 1 of Exhibit A,
"Further Description of Basic Services, Duties of Owner, Method of
Payment and Related Matters," which is attached to and made a part
of this Agreement.
1.3 Additional professional services (Special Services) related to the
Assignment will be performed by ENGINEER on request of OWNER for
an additional professional fee as the parties may subsequently
agree.
SECTION 2. OWNER'S RESPONSIBILITIES
OWNER shall :
2.1 Provide all criteria and full information as to OWNER' s require-
ments and designate a person with authority to act on OWNER' s
behalf on all matters concerning the Assignment.
2.2 Furnish to ENGINEER all existing studies, reports, and other
available data and services of others pertinent to the Assignment,
and obtain additional reports and data as required; and ENGINEER
shall be entitled to rely upon all such information and services
in performing services hereunder.
2.3 Arrange for access to and make all provisions for ENGINEER to
enter upon public and private property as required for ENGINEER to
perform services hereunder.
2.4 Perform such other functions as are indicated in Paragraph 2 of
Exhibit A, "Further Description of Basic Services, Duties of
Owner, Method of Payment, and Related Matters."
SECTION 3. PERIOD OF SERVICE
ENGINEER shall start performing services hereunder upon execution of
this Agreement and receipt of a written notice to proceed, and will
complete such services in accordance with the Schedule set forth in
Paragraph 3 of Exhibit A. "Further Description of Basic Services,
Duties of Owner, Method of Payment, and Related Matters." Additional
requirements as to the timing of ENGINEER' s services in relation to
the services of others or the happening of events beyond ENGINEER' s
control are set forth in Paragraph 3 of Exhibit A.
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SECTION 4. PAYMENT
4.1 OWNER shall pay ENGINEER for services rendered hereunder as indi-
cated in Paragraph 4 of Exhibit A, "Further Description of Basic
Services, Duties of Owner, Method of Payment, and Related Mat-
ters."
4.2 ENGINEER shall submit monthly statements.
4.3 ENGINEER's above charges are on the basis of prompt payment of
bills rendered and continuous progress of the work on the Assign-
ment until submission of the report.
4.4 If OWNER fails to make any payment due ENGINEER for services and
expenses within sixty days after receipt of ENGINEER's bill there-
for, the amount due ENGINEER shall include a charge at the rate of
1.0 percent per month from said sixtieth day, and in addition
ENGINEER may, after given seven days written notice to OWNER,
suspend services under this Agreement until ENGINEER has been paid
in full all amounts due for services and expenses rendered.
SECTION 5. COST CONTROL
5.1 OWNER's budgetary requirements and considerations in respect of
the Assignment are set forth in Paragraph 5 of Exhibit A, "Further
Description of Basic Services, Duties of Owner, Method of Payment,
and Related Matters-"
5.2 Opinions of probable construction cost, financial evaluations,
feasibility studies, economic analyses of alternate solutions, and
utilitarian considerations of operations and maintenance costs
prepared by ENGINEER hereunder will be made on the basis of the
ENGINEER's experience and qualifications and represent the ENGI-
NEER's best judgment as an experienced and qualified design pro-
fessional . It is recognized, however, that the ENGINEER does not
have control over the cost of labor, material , equipment, or ser-
vices furnished by others or over market conditions or contrac-
tors' methods of determining their prices, and that any utilitar-
ian evaluation of any facility to be constructed or work to be
performed on the basis of the report must of necessity be specula-
tive until completion of its detailed design. Accordingly,
ENGINEER does not guarantee that proposals, bids, or actual costs
will not vary from opinions, evaluations, or studies submitted by
ENGINEER to OWNER hereunder.
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SECTION 6. MISCELLANEOUS
6.1 All documents prepared by ENGINEER pursuant to this Agreement are
instruments of service in respect of the facility that is to be
constructed. They are not intended or represented to be suitable
for reuse by OWNER or others in extension of the facility beyond
that now contemplated or on any other facility. Any reuse by
OWNER without written verification or adaptation by ENGINEER for
the specific purpose intended will be at OWNER' s sole risk and
without liability or legal exposure to ENGINEER.
6.2 The obligation to provide further services under this Agreement
may be terminated (a) by OWNER with or without cause upon seven
days' written notice to ENGINEER and (b) by ENGINEER for cause
upon seven days' written notice to OWNER. In the event of any
termination, the ENGINEER will be paid for all services rendered
to the date of termination, all reimbursable expenses, and termi-
nation expenses.
6.3 OWNER and ENGINEER and the respective partners, successors, execu-
tors, administrators, assigns, and legal respresentatives of each
are bound by this Agreement to the other party to this Agreement
and to the partners, successors, administrators, assigns, and
legal representatives of such other party in respect of all conve-
nants, agreements, and obligations of this Agreement.
6.4 Nothing herein shall be construed to give any rights or benefits
hereunder to anyone other than OWNER and ENGINEER.
6.5 This Agreement is to be governed by the law of the principal place
of business of the ENGINEER.
6.6 This Agreement (consisting of five pages) , Exhibit A identified
above (consisting of eight pages) and Exhibit B (consisting of one
page) , constitute the entire Agreement between OWNER and ENGINEER
and supersede all prior written or oral understandings between
them in respect of the subject matter covered hereby. This Agree-
ment and said Exhibits A and B may only be amended, supplemented,
modified, or cancelled by a duly executed, written instrument.
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EXHIBIT A TO AGREEMENT
BETWEEN
OWNER AND ENGINEER
FOR
PROFESSIONAL STUDY AND REPORT SERVICES
FURTHER DESCRIPTION OF BASIC SERVICES, DUTIES OF OWNER
METHOD OF PAYMENT, AND RELATED SERVICES
CITY OF REDLANDS
SEWER RATE STUDY
This is an exhibit attached to and made a part of the Agreement dated
December 17 , 1985 between the City of Redlands (OWNER) and Camp Dresser
& McKee Inc. (ENGINEER) for study and report professional services.
1. The Basic Services of ENGINEER as described in Section 1 of said
Agreement are amended and supplemented as follows:
The ENGINEER' s approach to this assignment will be to provide a
recommended program of sewer rates and charges that will be suf-
ficient to pay for both current and future system expenses, as
well as a program to monitor and adjust sewer rates and charges to
ensure adequate long-term financing of capital improvement pro-
jects and operation and maintenance costs. The following para-
graphs describe the tasks that the ENGINEER will complete to
achieve the aforementioned rate study objectives:
Task 1 - Initial Project Meeting
ENGINEER will meet with the OWNER to obtain financial data on the sewer
system, including past and projected system operating expenses, audits,
budgets, bond resolutions, billing records, etc.; engineering studies and
cost estimates for the upgrading of the OWNER' s wastewater treatment facil-
ities and other planned capital improvement projects, and projections for
annual sewer replacements and associated costs.
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At the initial meeting, the ENGINEER also wants to designate a person with
authority who will act on the OWNER' s behalf to coordinate all data re-
quests; make interim policy decisions that may be required for the work,
and handle all other matters concerning the Assignment.
The ENGINEER will also use this meeting to discuss alternative rate and
charge systems the OWNER may wish to consider, as well as replacement
reserve fund, operation and maintenance reserve fund, and rate stabiliza-
tion reserve fund concepts.
Task 2 - Review Existing and Alternative Rate and Fee Structures
Resolution No. 3866 established the current monthly sewer rates. In ad-
dition, the following fees and charges have also been adopted by the OWNER:
1. A sewer main frontage charge,
2. A sewer construction charge, including credit for prior sewer
connections,
3. A sewer system inspection fee,
4. A sewer service study fee,
5. A brine dumping charge, and
6. A septic tank dumping charge.
The ENGINEER will evaluate the OWNER' s current rates, fees, and charges, as
well as alternative rates and charges feasible for adoption by the OWNER.
The OWNER' s current rates and charges plus alternative rates and charges
being considered for adoption will be compared with those of six comparable
communities in the San Bernardino-Riverside-Orange County area. This re-
view will be documented in the form of an interim study memorandum, that
will be prepared by the ENGINEER and OWNER for staff review.
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Task 3 - Review and Project Wastewater System Operation and Maintenance
Expenses
Based on historic O&M expenditures, budget documents, and planned improve-
ments/extensions, the ENGINEER will prepare projections of the anticipated
wastewater system operation and maintenance expenditures for a ten (10)
year period. The OV expenditure projections will take into account in-
creased expenses due to inflation, proposed treatment process changes, and
increased wastewater discharges due to growth in the customer base. The
projected O&M expenses will be used to determine future rates.
Task 4 - Review Future Capital Expenditures/Develop Financing Plan
Under the Wastewater Collection System Master Plan, and the current capital
improvement financing study, the ENGINEER developed a financing and cost
recovery approach for the wastewater collection system capital improvements
that were recommended in the Master Plan to correct existing and projected
future capacity deficiencies in the OWNER' s present sewer system. The
ENGINEER will also review the OWNER' s plans for future collection system
and wastewater treatment plant improvements, and develop proposed financing
plans for these improvements. Based on the timing and magnitude of the
projected capital expenses, the ENGINEER will develop alternative methods
for financing the projects. Financing alternatives to be considered will
include various types of bond issues ( short term/long term, variable and
fixed rate bonds, etc. ) , revenue financing, developer contributions, and
federal/state grants. The result of this task will be to develop estimated
future bond issues and/or plans to finance improvements in whole or in
part, from current revenue sources. The annual debt service requirements
on any bond issues (or other financing instruments) will be projected.
Existing and proposed sources of revenues to repay project financing expen-
ses will be identified and projected.
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Task 5 - Analyze Reserve Fund Alternatives
Because the source of revenues for sewer funds are dependent upon local and
national economic conditions that are beyond the control of the OWNER, the
ENGINEER will analyze the use of capital improvement and operation and
maintenance reserve funds, as well as renewal and replacement funds to
provide adequate and predictable revenue backup for the funding of system
capital , operation and maintenance and facility replacement costs.
Task 6 - Summarize Projected Wastewater System Expenditures
Based on the above tasks, the projected annual wastewater system expendi-
tures for O&M, capital , debt and reserve funds will be summarized by the
ENGINEER for a ten (10) year period. The total annual expenditures will
represent the costs which must be recovered through various rates and
charges, and will form the basis of any new rates and charges proposed in
the study. Because of the importance to the determination of proposed
rates and charges, the projected annual expenditures will be summarized by
the ENGINEER in an interim study memorandum that will be submitted to the
OWNER's staff for review.
Task 7 - Review and Project Customer Usage and Growth
The ENGINEER will review past trends in wastewater discharge rates within
the study service area. The ENGINEER has already obtained and projected
customer growth patterns, by classification, in conjunction with the cur-
rent capital improvement financing study that is underway. Using historic
trends and the recently developed growth projects, the ENGINEER will pro-
ject wastewater discharges for a ten year period. The ENGINEER will furth-
er refine the data and analyze special cases such as hospitals, schools,
etc. , in order to arrive at an equitable allocation of costs among the
various residential , commercial , industrial and institutional users of the
OWNER's sewer system.
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Task 8 - Develop Rates and Charges
Based on projected expenses and usage, the ENGINEER will develop new waste-
water system rates and charges. The proposed rates and charges will take
into consideration the alternative rates, fees and charges analyzed under
Task 2. The ENGINEER will develop the proposed rates and charges using
micro computer based software which can be transferred to the OWNER' s
IBM-PC computer. By using a computer model , certain assumptions can be
rapidly changed to evaluate new rates and charges. The computer model will
also allow the performance of sensitivity analyses on the study assump-
tions. Where needed, the ENGINEER will develop alternative rates and fees
that will enable the OWNER to determine the impact of alternative rate
structures.
Task 9 - Implementation Considerations
Eventhough the ENGINEER will project sewer system expenses and useages for
a ten (10) year period, the OWNER may not want to adopt rates and charges
for the entire period because of the uncertainties involved with such long-
term projections. Under this task, the ENGINEER will develop sewer rates
and charges for a shorter, more certain period, say two (2) to three (3)
years. Under this approach, the long-term projections would be used as an
indicator of future trends, and would be used to (1) initially establish
new rates and charges for a one (1) year period, and (2) develop an esti-
mate of the annual increases required thereafter. The ENGINEER will also
evaluate the use of sewer rates and charges with automatic annual escalator
that takes effect each year in the absense of any other action. This type
of rate implementation provides for predictable long-term rates, which
customers prefer, and eliminates the need for rate setting bodies to vote
unpopular, annual rate increases. The ten year projection model can then
be used to monitor the performance of the automatic rate increases, and, if
adjustments are needed, the model can indicate the degree of adjustment.
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Task 10 - Review Alternative Rates and Fees with the OWNER' s Staff
Once the computer model analysis has been completed, the ENGINEER will meet
with the OWNER's staff to discuss the proposed rates and charges, as well
as implementation considerations and specific policy implications. From
this meeting will evolve the recommended rate and fee structure, or alter-
native rate and fee structures that the OWNER' s staff will be recommending
to its City Council .
Task 11 - Prepare Draft and Final Report
After reviewing the proposed rates and charges with the OWNER's staff, the
ENGINEER will prepare a draft report documenting the study efforts and
findings. Four (4) copies of the draft report will be submitted to the
OWNER for review. After receipt of the draft report review comments from
the OWNER, the ENGINEER will prepare a final project report that incorpo-
rates all OWNER-requested changes and modifications, and will submit
twenty-five (25) copies of the final project report to the OWNER.
In addition to the basic services of the ENGINEER described above, the
ENGINEER will also perform the following optional tasks:
Task 12 - Presentation at City Council Meeting
The ENGINEER will prepare for and make a presentation to a City Council
meeting or hearing related to the proposed rates and fees presented in the
final project report.
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Task 13 - Prepar User' s Manual for Rate Model
The ENGINEER will develop and use an internal rate model based on commer-
cially available software to perform the project analyses. Under this
task, the model will be augmented so as to be useful to the OWNER' s staff
in future rate analyses. In addition, the ENGINEER will prepare a users
manual which describes how the software is to be used and/or modified. The
rate model can then be used by the OWNER' s staff to update the rate study
or perform additional analyses as required in the future.
Task 14 - Provide Rate Model Training
The ENGINEER will provide up to three (3) days of on-site training of the
OWNER's staff on the use of the rate model , if the City elects to exercise
the three 1-day sessions that would occur throughout the study. The first
Session would occur after the completion of task 8, when preliminary rates
and charges have been determined. The second session would occur at the
time the draft report is submitted. At this time, final decisions on rate
structure alternatives will have been made and the second session would
include demonstrations on how the rates were determined. The third session
would occur after submittal of the final report. The OWNER' s staff will
have had time to use the rate model at this point, and advanced techniques
and user modifications would be discussed at the final session.
2. The responsibility of OWNER as described in Section 2 of said
Agreement are amended and supplemented as follows:
Provide historic information on actual and projected future capi-
tal improvement, O&M, and replacement costs and budgets for the
wastewater collection system, as required for the Assignment.
Examine all interim study memorandums, draft project report, and
other documents submitted by the ENGINEER, and provide written
comments to the ENGINEER and render in writing decisions pertain-
ing thereto within a reasonable time so as not to delay the
services of the ENGINEER.
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3. The time periods for the performance of ENGINEER's services as set
forth in Section 3 of said Agreement are amended and supplemented
as follows:
Completion of Tasks 1 through 7 6 Weeks from Notice to Proceed
Completion of Tasks 8 through 10 10 Weeks from Notice to Proceed
Completion of Draft Study Report 12 Weeks from Notice to Proceed
Completion of Final Study Report 2 Weeks after Receipt of
OWNERS' s Written Review
Comments
4. The method of payment for services rendered by ENGINEER shall be
as set forth below:
Charges shall be billed monthly to OWNER before the 25th day of
the following month, and payment by OWNER shall be made within 30
days. Invoices shall include billing for labor charges and direct
costs incurred by ENGINEER during each month of services rendered
to OWNER in conformance with this Agreement. Charges shall be
based on ENGINEER' s standard billing schedule attached as Exhibit
B to the Agreement. ENGINEER shall keep records on all services
and charges, and make them available for review and audit if re-
quested by OWNER.
5. OWNER has established the following special provisions and/or
other considerations or requirements in respect of the Assignment:
ENGINEER' s estimate of the cost of this Assignment is $31 ,500
(Thirty One Thousand Five Hundred Dollars) . ENGINEER will advise
OWNER when seventy-five (75) percent of the costs are expended and
will provide a review of the expenditures. ENGINEER may request a
revision in the estimated cost for performance of this Assignment
and will relate the rationale for the revision to the specific
basis of estimate as described under Basic Services in Paragraph i
of this Exhibit. Such notification will be submitted to OWNER at
the earliest possible date. The authorized cost estimate will not
be exceeded without approval of OWNER and ENGINEER.
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EXHIBIT B TO AGREEMENT
BETWEEN
OWNER AND ENGINEER
FOR
PROFESSIONAL STUDY AND REPORT SERVICES
CITY OF REDLANDS
SEWER RATE STUDY
TIME AND MATERIALS BILLING SCHEDULE
Effective December, 1985
PROFESSIONAL AND SUPPORT SERVICES
Vice President/Sr. Consultants $ 90.00 - $130.00
Associate 85.00 - $110.00
Principal Engineer/Scientist 85.00 - 100.00
Supervising Engineer/Scientist 65.00 - 95.00
Senior Engineer/Scientist 55.00 - 85.00
Construction Resident Engineer 55.00 - 85.00
Construction Resident Inspector 35.00 - 75.00
Associate Engineer/Scientist 45.00 - 75.00
Staff Engineer/Scientist 35.00 - 55.00
Draftsperson/Designer 35.00 - 65.00
Rate Specialist 55.00 - 90.00
Technical Editor 20.00 - 40.00
Administrative Assistant 35.00 - 55.00
Technician/Clerk 20.00 - 40.00
Secretary/Word Processor 25.00 - 40.00
OTHER DIRECT COSTS
Other reimbursable direct costs shall be billed at 1.1. times actual
cost to cover the cost of general and administrative expenses and
handling. These reimbursable costs include, but are not limited to:
Travel : Air Fare, Auto Rental , Local Mileage ($.20/mile)
Subsistence: Lodging and Meals
Communications: Long Distance Telephone, Postage and Federal Express
Printing: Internal Reproduction ($.15/sheet) ; Outside Printing Services
Computer and Word Processing Services
Consultant and Subcontracted Services
Equipment Rental
APPROVED
Donald E. Evenson
IN WITNESS WHEREOF, the parties hereto have made and executed this Agree-
ment as of the day and year first above written,
OWNER: ENGINEER:
CITY OF REDLANDS CAMP DRESSER & McKEE INC.
By - By
Mayor, City of Redlands Vice President
ATTEST :
4: w wy
City Clerk
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