HomeMy WebLinkAboutContracts & Agreements_155-2007_CCv0001.pdf AGREEMENT WITH RAFTELIS FINANCIAL CONTSUTI-TANTS FOR
CONSULTING SERVICES
This agreement for consulting services("Agreement") is made and entered into this 4`"day
of September, 2007 ("Effective Date"), by and between the City of Redlands, a municipal
corporation ("City") and Raftelis Financial Consultants, Inc. ("Consultant"). City and Consultant
are sometimes individually referred to herein as a "Party"and, together, as the "Parties."
In consideration of the mutual promises contained herein, City and Consultant agree as
follows:
ARTICLE I - ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to perform consulting services to determine nonpotable
water rates and nonpotable impact fees for new users for the City's water system. The
specific Services which Consultant shall perform are more particularly described in Exhibit
"A."entitled "Scope of Services." which is attached hereto and incorporated herein by this
reference.
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 the
Services to City at a level of competency presently maintained by other practicing
professional consultants in the industry providing like and similar types of services.
1.3 Consultant shall comply with all applicable Federal, State and local laws and regulations in
the performance of this Agreement including, but not limited to. the Americans with
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Disabilities Act and the Fair Employment and Housing Act.
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ARTICLE 2 - RESPONSIBILITIES OF CITY
2.1 City shall make available to Consultant information in its possession that may assist
Consultant in performing the Services.
2.2 City will make provision for Consultant to enter upon City-owned property, as reasonably
required by Consultant., to perform the Services.
2.3 City designates Gary Phelps,the City's Municipal Utilities Director,as City's representative
with respect to Consultant's performance of the Services. The Municipal Utilities Director
shall have the authority to transmit instructions, receive information., interpret and define
City's policies and decisions with respect to performance of the Services.
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ARTICLE 3 - PERIOD OF SERVICE
3.1 Consultant shall perform the Services in a prompt and diligent manner and shall complete
the Services by December 30, 2007.
ARTICLE 4 - PAYMENT AND NOTICE
4.1 The total compensation for Consultant's performance of the Services shall not exceed the
amount of Twenty-Four Thousand Nine Hundred Seventy-Five Dollars($24,975), including
reimbursement for estimated direct expenses. City shall pay Consultant on a time and
materials basis Lip to the not to exceed amount in accordance with Exhibit"A." and based
upon the hourly rates described therein. Consultant shall be reimbursed by City for direct
expenses incurred in connection with the Services. Direct expenses are costs incurred by
Consultant in providing the Services including, but not limited to, costs for travel.
technology charges, postage, long distance telephone calls and reproduction.
4.2 Payments by City to Consultant shall be made within thirty (30) days after receipt and
approval by City of Consultants*s invoice, by warrant payable to Consultant. Invoices
shall be sent to City on a monthly basis.
4.3 All notices shall be given in writing by personal delivery or by mail. Notices, sent by
mail should be addressed as follows:
City: Gary Phelps
Municipal Utilities Director
City of Redlands
PO Box 3005
Redlands, CA 9237')
Consultant: Sudhir Pardiwala
Raftelis Financial Consultants
201 S. Lake, Ste. 803
Pasadena, CA 91.101
When so addressed, such notices shall be deemed given upon deposit in the United States Mail.
Changes may be made in the names and addresses of the person to who notices and payments are
to be given by giving notice pursuant to this section,
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ARTICLE 5 - INSURANCE AND INDEMNIFICATION
5.1 All insurance required by this Agreement shall be maintained by Consultant for the duration
of its performance of the Services. Consultant shall not perform any Services pursuant to
this Agreement unless and until all required insurance listed below is obtained by
Consultant. Consultant shall provide City with certificates of insurance and endorsements
evidencing such insurance prior to commencement of the Services. All insurance policies
shall include a provision prohibiting cancellation of the policy except upon thirty(30)days
prior written notice to City.
5.2 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 City. The insurance policy
shall include a provision prohibiting cancellation of said policy except upon thirty(30)days
prior written notice to City.
B. Consultant expressly waives all rights to subrogation against City, its elected
officials, officers and employees 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 waiver 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 are valid and enforceable only to the extent of the negligence of Consultant, its
officers, agents and employees,
5.3 Hold Harmless and Indemnification. Consultant shall indemnify,hold harmless and defend
City and its elected officials, employees and agents from and against any and all claims,
losses or liability, Z-1
including attorneys' fees, arising from injury or death to persons or
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damage to property occasioned by any act, omission or failure to act by Consultant., its
officers., employees and agents in performing the Services.
5.4 Assignment. Consultant is expressly prohibited from assigning any of the Services without
the express written consent of City. In the event of mutual agreement between Parties to
assign a portion of the Services, Consultant shall add the assignee as an additional insured
and provide City with the insurance endorsements prior to the performance of any services
by the assignee. Assignment does not include printing or other customary reimbursable
expenses that may be provided in this Agreement,
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5.5 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 the
insurance policy shall include a provision prohibiting cancellation of said policy except upon
thirty (30) days prior written notice to City. Such insurance shall be primary and non-
contributing to any insurance or self-insuranpe maintained by City. Certificates of insurance
and endorsements shall be delivered to City prior to commencement of the Services.
5.6 Professional Liability Insurance. Consultant shall secure and maintain professional liability
insurance throughout the duration of this Agreement in the amount of One Million Dollar's
($1,000,000) per claim made. Certificate of liability insurance and endorsement shall be
delivered to City prior to commencement of the Services,
5.7 Business Auto Liability Insurance, Consultant shall have business auto liability coverage,
with minimum limits of One Million Dollars($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. Such insurance shall be primary and non-contributing to any
insurance or self insurance maintained by City. City shall be named as an additional insured
and a certificate of liability insurance and endorsement shall be delivered to City prior to
commencement of the Services.
ARTICLE 6 - CONFLICTS OF INTEREST
6.1 Consultant covenants and represents that it does not have any investment or interest in
real property and shall not acquire any interest. direct or indirect, in the geographical area
covered by this Agreement or any other source of income, interest in real property or
investment which would be affected in any manner or degree by the performance of
Consultant's Services. Consultant further covenants and represents that in the
performance of its duties hereunder, no person having any such interest shall perform any
Services under this Agreement.
6.2 Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make or participate in:
(i) the making or any governmental decisions regarding approval of a rate.,
rule or regulation, or the adoption or enforcement of laws;
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(ii) the issuance, denial, suspension or revocation of permits, licenses,
applications, certifications, approvals, orders or similar authorizations or
entitlements,
(iii) authorizing City to enter into., modify or renew a contract;
(iv) granting City approval to a contract that requires City approval and to
which City is a party, or to the specifications for such a contract;
(v) granting City approval to a plan, design, report, study or similar item,
(vi) Adopting, or granting City approval of, policies, standards or guidelines
for City or for any subdivision thereof.
B. Does not serve in a staff capacity with City and in that capacity participate in
making a governmental decision or otherwise perform the same or substantially all the
same duties for City that would otherwise be performed by an individual holding a
position specified in City's Conflict of Interest Code under Government Code section
87302.
6.3 In the event City officially determines that Consultant must disclose its financial interests
by completing and filing a Fair Political Practices Commission Form 700, Statement of
Economic Interests, Consultant shall file the subject Form 700 with the City Clerk*s
office pursuant to the written instructions provided by the Office of the City Clerk.
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,including fees for in-house counsel
of the Parties.
7.2 Consultant shall not assign any of the Services to be performed under 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 person to perform the Services is Sudhir Pardiwala, Vice President,
Consultant agrees that this key person shall be made available and assigned to perform the
Services and that he shall not be replaced without concurrence from City.
7.4 All documents, records, drawings, designs, cost estimates, electronic data files, databases,
and other documents developed by Consultant pursuant to this Agreement,and any copyright
interest in such documents,shall become the property of City and shall be delivered to Citv
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upon completion of the Services,or upon the request of City. Any reuse of such documents
and any use of incomplete documents will be at City's sole risk.
7.5 Consultant is for all purposes an independent contractor. Consultant shall supply all tools
and instrumentalities required to perform the Services. 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 of the Services by City.
7.7 This Agreement may be terminated by City, in its sole discretion and without cause, by
providing five (5) business days' prior written notice to Consultant(delivered by certified
mail, return receipt requested) of intent to terminate.
7.8 If this Agreement is terminated by City,an adjustment to Consultant's compensation shall be
made,but(1)no amount shall be allowed for anticipated profit or unperformed services.and
(2) any payment due Consultant at the time of termination may be adjusted to the extent of
any additional costs to City occasioned by any default by Consultant.
7.9 Upon receipt of a termination notice, Consultant shall immediately discontinue all services
affected'. and within five (5)days of the date of the termination notice, deliver or otherwise
make available to City,copies(in both 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. Consultant shall be compensated on a
pro-rata basis for work completed up until notice of termination.
7.10 Consultant shall maintain books and accounts of all payroll costs and expenses related to the
Services. Such books shall be available at all reasonable times for examination by City at
the office of Consultant.
7,11 This Agreement, including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained herein,
and any prior negotiations,written proposals or verbal agreements relating to such matters
are superseded by this Agreement. Any amendment to this Agreement shall be in writing,
approved by City and signed by City and Consultant.
7.12 This Agreement shall be governed by and construed in accordance with the laws of the State
of California.
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IN WITNESS WHEREOF,duly authorized representativ=es of the City and Consultant have
signed in confirmation of this Agreement.
CITY OF R> DLANDS RAFTELIS FINANCIAL CONSULTANTS,
INC.
BY: A4 wV By:
Jon Harrison, Mayor Sudhir Pardiwala, Vice President
Attest:
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j4
City--Clerk
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EXHIBIT "A"
SCOPE OF SERVICES
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RFCm 201 S. Lake Blvd, Suite 803 Phone 626-5831894 wmv.raftelis.corn
Pasadena - CA- 91101 Fax 626-5831411
RAFTELIS FINANCIAL
CONSULTANTS,INC.
August 17, 2007
Mr. Chris Diggs
Water Resources Manager
City of Redlands
35 Cajon Street, Suite 15A
Redlands, California 92373
Subject: Proposal for Connection and User Fees for Non Potable System
Dear Mr. Diggs:
As you requested, we have prepared this proposal for developing the City of
Redlands' (City) connection and user fees for the non potable system. A brief
understanding of the scope, tasks and fees is presented below.
Connection fees have significant economic and social impacts that must be
considered in addition to the fair allocation of costs between the existing and
future new users of the water system. In addition, to establish a firm legal basis,
Connection fees must comply with Government Code 66000. This requires that-.
• There is a nexus or Connection between fees charged and facilities
required to provide service.
The Connection fee revenues are accounted for separately.
RFC will design fees and make recommendations to comply with the above
requirements.
The scope of the tasks to be conducted is presented below.
SCOPE
RFC will complete the following tasks to determine the connection fees
Task ]-Review Connection Fee
RFC will review the existing potable connection fees to determine the case for
inclusion of potable water costs in an integrated water connection fee including
both potable and non-potable water. Many times the two are interconnected, in
that in the absence of non-potable water, potable water may be provided. Fire
service is also provided from potable water.
City of Rcdlands
Auoust 17, 2007
Task Compile Operational Asset Data, Review Alethodology
We will compile operational data for the non-potable system including users,
usage and fiscal data. The data will be organized in a manner suitable for
calculating user rates. We will review the existing asset base of facilities in the
non potable system and determine capacity available for users. We will consult
with City staff to obtain this information and use engineering judgment as
required. We will review available master plans and capital projects. Connection
fees may be based on a composite of existing and new facilities.
Task 3-Determine Connection Fees for Different Users
RFC will review the different methodologies for determining connection fees and
with City input choose the appropriate method. The calculation in Task 2 will
provide connection fees per equivalent dwelling unit (EDU). It is important to
ensure that users pay in proportion to the demands they impose on the system.
We will review the basis for charges to different customer types. Many
connection fees for water are based on meter size.
Task 4-Compliance with Regulatory Requirements
We will verify that the Connection fees are in compliance with Government Code
Section 66000. We will also consult with City staff regarding compliance with the
accounting requirements.
Task 5-Deterininet1ser Fees
RFC will review all the operational, debt and capital cost data along with the non-
potable water sales. The agreement and sales to Mountain Power Company will
be reviewed as well and an EXCEL spreadsheet will be set up to determine user
rates.
Task 6-Prepare a Report
We will provide an electronic copy or 5 hard copies of the draft report with
assumptions, methodology and calculations for review by the City and legal
counsel. After soliciting responses from City staff, we will amend the draft to
produce a final report which will address any concerns and incorporate any
changes or additional explanation deemed necessary.
Task 7-Meetings
We will conduct two meetings at the City to initiate the project and to discuss
results.
Task 8-ConsultationAleetings
We will attend teleconference meetings and face-to face meetings as requested
by the city to discuss issues related to connection fees for water and wastewater
services and other issues as requested by the City,
City of Redlands -3- August 17, 2007
SCHEDULE
Assuming that notice to proceed is provided in September, RFC will produce a
draft report by December 30, assuming that asset data will be made available by
the City within a couple of weeks of notice to proceed,
FEES
RFC proposes $24,975 for completion of non-potable water connection fee
studies. A cost breakdown of fees and tasks is shown below.
We appreciate the opportunity to submit this proposal and look forward to
working with you on this project. If you have any questions or need additional
information, please call me at (626) 583-1894.
Sincerely,
Raftelis Financial Consultants, Inc.
By:
Sudhir Pardiwala
Vice President
Hours
RaReils Finan;ialConsul
1. Review Connection Fees 6 HP___ A min
Complle operational Asset Daia-,Meview Methodology 4
3.Determine Connection Fees for Different users 14 12
4.—Compliance with Regulatory Requirements
S.Determine Us;;Fees ---
4 12
6.Prepare a!!port
16 6
eetings W 16
8.C
RonZitaiijon Meetings
Total estimated hours 164 12
Hourly rates $ 150 560
Professional Fees $13,200 $9,600 $720
Total fees [, $23,520
Estimated expenses $1,455
Total Fees and Expenses 524,97-5
Ke)L
SP Sudhir Pardi�,vila
HP f lanmih Phan