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HomeMy WebLinkAboutR-2002-015 Black & Veatch Corporation Agreement Modification No. 1RESOLUTION NO. R 2002 - 15 A RESOLUTION authorizing and directing the City Manager to execute Modification No. 1 to the existing Consulting Services Agreement (City Contract No. 2001- 79) between the City of Yakima and Black & Veatch Corporation for additional consulting services to assist in the development of a Tong -term regulatory compliance and professional development plan for the City of Yakima Water and Irrigation Division. WHEREAS, on August 15, 2001, the Black & Veatch Corporation and the City of Yakima entered into a Consulting Services Agreement (City Contract No. 2001-79) for provision 'of consulting services to assist in the development of a long-term regulatory compliance and professional development plan for the City of Yakima Water and Irrigation Division; and WHEREAS, the parties desire to expand the scope of services to be provided under the Agreement and to modify other portions of the Agreement; and WHEREAS, personnel from the Water and Irrigation Division represent that they have complied with the provisions of RCW Chapter 39.80 concerning the procurement of engineering services; and, WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize execution of Modification No. 1 to the existing Consulting Services Agreement (City Contract No. 2001-79) between the City of Yakima and Black & Veatch Corporation for additional consulting services, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the attached and incorporated Modification No. 1 to the existing Consulting Services Agreement (City Contract No. 2001-79) between the City of Yakima and Black & Veatch Corporation for additional consulting services to assist in the development of a long-term regulatory compliance and professional development plan for the City of Yakima Water and Irrigation Division. ADOPTED BY THE CITY COUNCIL this 19th day of February, 2002. ATTEST: Atm Karen Roberts, City Clerk Place, Mayor MODIFICATION NO. 1 TO CONSULTING SERVICES AGREEMENT WITH BLACK & VEATCH THIS MODIFICATION to the existing Consulting Services Agreement with Black & Veatch, City of Yakima Contract No. 2001-79 (hereinafter "Agreement") is entered into by and between the City of Yakima, Washington, a municipal corporation (hereinafter the "City"), and Black & Veatch Corporation (hereinafter "Black & Veatch"). WHEREAS, on August 15, 2001, Black & Veatch and the City entered into an Agreement for provision of consulting services to assist in the development of a long-term regulatory compliance and professional development plan for the City of Yakima Water and Irrigation Division; and WHEREAS, the parties desire to expand the scope of services to be provided under the Agreement and to modify other portions of the Agreement. NOW, THEREFORE, the City and Black & Veatch agree to the following modifications to the Agreement: 1. Additional Services and Consideration. a. An additional Twelve Thousand Forty Nine Dollars ($12,049.00) shall be paid to Black & Veatch for additional services necessary to complete Phase I of Section 1 — Scope of Services of the Agreement. Black & Veatch shall contract with Art O'Neal and Associates for said services and shall pay said sum to Art O'Neal and Associates. Black & Veatch shall bill the City for the services of Art O'Neal and Associates as a direct cost, without any markup by Black & Veatch. b. An additional Task 8 — Division -Wide Financial Analysis is also added to Phase I of Section 1 — Scope of Services of the Agreement. A description of Task 8 is provided on the attached and incorporated December 17, 2001 letter from Black & Veatch. Fifteen Thousand Four Hundred and Eighty Eight Dollars ($15,488.00) shall be paid to Black & Veatch for said financial analysis. The fee of Black & Veatch is calculated upon a time -spent basis in accordance with the fee schedule provided in the December 17 letter, but also includes any and all costs and expenses of Black & Veatch in providing said consulting services. (Ik)Water/Black & Veatch Mod.1-02.pm c. The cost estimate for completion of the consulting services described under Phase II of Section 1 — Scope of Services of the Agreement, shall not exceed a total of Seventy Seven Thousand Five Hundred and Forty Nine Dollars ($77,549.00). Forty Seven Thousand Two Hundred and Forty Six Dollars ($47,246.00) of said sum shall be allocated to consulting services provided directly by Black & Veatch. The fee of Black & Veatch is calculated upon a time -spent basis in accordance with the fee schedule attached as exhibit C to the original Agreement, but also includes any and all costs and expenses of Black & Veatch in providing said consulting services. The remaining Thirty Thousand Three Hundred and Three Dollars ($30,303.00) of the consideration for completion of the Phase II consulting services shall be paid to Black & Veatch for facilitation services provided during completion of Phase II. Black & Veatch shall contract with Art O'Neal and Associates for said facilitation services and shall pay said sum to Art O'Neal and Associates. Black & Veatch shall bill the City for the services of Art O'Neal and Associates as a direct cost, without any markup by Black & Veatch. d. With the additional compensation described in this modification, the total compensation to be paid for consulting services under the Agreement is hereby increased from Thirty Eight Thousand Three Hundred Twenty Three Dollars ($38,323.00) to One Hundred Forty Three Thousand Four Hundred and Nine Dollars ($143,409.00). e. The following language is hereby stricken through and deleted from Section (3)(d) of the Agreement: "If the City fails to pay 2. Deletion of Section 23 — Property. Section 23 of the Agreement entitled "Property, " is hereby removed and deleted from the Agreement and shall have no further legal effect and/or enforceability between the parties. 3. Deletion of Section 24 — Damages. Section 24, entitled "Damages," of the Agreement is hereby removed and deleted from the Agreement and shall have no further legal effect and/or enforceability between the parties. (tk)Water/Black & Veatch Mod. 7-02.pm v Except to the extent expressly modified herein, all of the other terms and conditions contained in the Agreement shall remain in full force and effect. BLACK & VEATCH CORPORATION By: Pa ela R. L: oine, Regional Manager Date: c1k..5, 2002 (lk)Wa ter/Black & Veatch Mod.1-02.pm CITY OF YAKIMA By City Manager Date: 7,2)o ATTEST: City Clerk City Contract No. 2002-11 Amends No. 2001-79 Resolution No. R-2002-15 While conducting `Stakeholder' interviews during early action activities of Phase I, it was asked whether or not the Consultant could accomplish a Division -wide Financial Analysis to identify both the long and short term impacts associated with alternative operating scenarios. The question was asked as a result of alternatives currently being studied relating to the Irrigation Utility's capital program needs. The cost to perform this task is currently estimated to be $15,488 and would be completed as a part of the Phase I activities. All actions and activities in Phase II of the Plan Development program will be designed to build on the results developed during Phase I. This will include the development of strategies and action plans, as well as performance measures, to ensure the successful implementation of the entire Program. Black & Veatch's cost for services to be rendered in Phase II will be $47,246. Phase I, under Original Contract and Modification No. 1: • Black & Veatch: o Original contract o Financial Analysis ■ Art O'Neal and Associates $38,323 $15,488 $12,049 Subtotal $65,860 Phase II, with Modification No. 1 • Black & Veatch $47,246 • Art O'Neal and Associates $30,303 Subtotal $77,549 Total Amended Contract, Amount not to exceed $143,409 Attachments: Resolution Modification No. 1 Letter for Modifies Scope of Services BLACK & VEATCH 720 Third Avenue Suite 1100 Seattle, WA 98104 Tel: (206) 682-1133 Black & Veatch Corporation December 17, 2001 Mr. Dueane Calvin Water & Irrigation Division Manager City of Yakima 2301 Fruitvale Blvd. Yakima, WA 98902 Additional Scope of Services — Program Development Dear Dueane: As you are aware, one of the early tasks required under our scope of services for the Program Development was the conduct of numerous focus group meetings with staff and meetings with various stakeholders. These meetings resulted m the compilation of a great deal of valuable information as the steering committee and teams move forward with the development of the Program. One recurring message from the meetings was the need for a thorough evaluation of the Division as a whole — including both short-term and long-term financial analyses. Black & Veatch agrees that in order for the Division to develop a long-term plan that reflects both current needs as well as addresses long-term goals, it is necessary for the Division to understand the ramifications of alternative operating scenarios. Following is our recommendation for a new Task 8 — Division -wide Financial Analysis, to be added to Phase II of the Program Development. The objective of this work is to provide you and City management with more complete information concerning the total cost to the Division, and therefore, customers, of rebuilding the original irrigation system (the 308) versus converting those customers to domestic water. It also results in enhanced Water and Irrigation Financial Planning Models that staff can use now and in the future to evaluate additional alternatives. The following work plan outlines the tasks required for this analysis, approximate timeline to complete the work, requirements of City staff, and estimated costs. Work Plan The following tasks outline the work proposed. Task 8. Division -Wide Financial Analysis Subtask 8.01 Data Collection Black & Veatch will obtain and review available data required for the completion of the study. A detailed information list will be submitted upon notice to proceed. Information required will include projected capital improvements for both the Irrigation and Domestic Water Systems for the projection period, projected 2002 operating budgets, anticipated increases in operation and maintenance costs based on alternative CIPs, current customer and usage data and projected customer growth over the projection period. Subtask 8.02 Develop Irrigation System Cash Flow Analysis Black & Veatch will update the Irrigation System model, through Cashflow, to accommodate a 2002 — 2021 projection period. In order to complete the analysis, it will be necessary to expand the model to accommodate a 20 -year projection period (current model accommodates a 5 -year projection period). Mr. Dueane Calvin December 17, 2001 City of Yakima Page 2 Based on information provided by City staff, we will develop up to two (2) alternative cashflow scenarios, including projected revenue increases required for each year of the projection period. Subtask 8.03 Develop Domestic Water System Cash Flow Analysis Black & Veatch will update the Domestic Water System model, through Cashflow, to accommodate a 2002 — 2021 projection period. In order to complete the analysis, it will be necessary to expand the model to accommodate a 20 -year projection period (current model accommodates a 5 -year projection period). Based on information provided by City staff, we will develop up to two (2) alternative cashflow scenarios, including projected revenue increases required for each year of the projection period. Subtask 8.04 Develop Division -wide Cash Flow Analysis Black & Veatch will develop a Division -wide cash flow analysis, utilizing the information developed for the Irrigation and Domestic Water systems, to identify the total costs for the Division under up to two (2) alternative CIP/Operating scenarios. The Division -wide analysis will accommodate a 20 -year (2002-2021) projection period. Subtask 8.05 Preliminary and Final Report Black & Veatch will document the results of the analysis in a technical memorandum. The memorandum will outline the assumptions used in completing the analysis, description of alternatives evaluated, and presentation and explanation of the results of the analysis. Black & Veatch will provide a draft of the memorandum to Division staff for review. Upon receiving comments, Black & Veatch will prepare a final memorandum. Subtask 8.06 Meetings and Presentations Black & Veatch will participate in up to two (2) meetings with City staff and or City Council, for the purpose of presenting preliminary and/or final study results. Additional meetings would be provided on a time and material basis, utilizing the billing rates outlined below. City Staff Responsibilities The completion of this analysis will require certain data and information from City staff. Due to the importance of completing this review in a timely manner, it will be important for City staff to provide required information and review preliminary results in a timely manner. Estimated Timeline for Completion The above analysis is expected to take approximately four (4) weeks to complete. Upon receiving notice -to -proceed, we will develop an initial data request to provide to City staff within 2 days upon receiving notice -to -proceed. Because we already have the most recent Irrigation and Domestic Water models, we propose to immediately proceed with updating and expanding the models. Once required information is received from City staff, we will develop alternatives and prepare a memorandum for review by City staff. Based on City staff comments, we will finalize and deliver the memorandum and updated models within one week of receiving staff comments. Cost Estimate The level of effort required to complete the work outlined above is estimated to be approximately 130 hours at a cost of $15,488. If we determine, based on identification of alternatives and other information requested by the City, that additional work is required in order to achieve the City's goals with respect to the project, we will immediately contact Division management to discuss the -anticipated level of effort required, prior to proceeding with the work effort. Mr. Dueane Calvin December 17, 2001 City of Yakima Page 3 Basis for Billing Fees for services outlined above will be based on hourly rates for individuals directly involved in the study plus actual direct expenses incurred. Current billing rates are shown in the tabulation below. Direct expenses include costs for such items as travel, postage, and reproduction costs. .. Hourly Rates Principal Consultants $158-179 Senior Consultants $137-147 Consultants $126 Associates $ 79 Administrative $ 58 Project Team The work outlined above will be completed by Black & Veatch's Management Consulting Division - a group specifically devoted to providing financial planning and organizational strengthening services for public utilities. Following is a brief description of the background for team members that will be responsible for the completion of this project: Pam Lemoine is the Pacific Northwest Regional Director for Black & Veatch's Management Consulting Division. In this capacity, Pam has served as project director, project manager or lead consultant on a wide variety of economic and financial projects. She has worked with the Water & Irrigation Division since 1996 when she developed the Division's first domestic water rate model. She has provided guidance and assistance to the Division's domestic water and irrigation cost of service and rate analysis since that time. Other clients with whom Pam is currently, or has recently completed services for include King County, Port of Seattle, Tacoma and Seattle, Washington; Petersburg, Klawock and Ketchikan, Alaska; and Portland, Gresham, and St. Helens, Oregon. Katyn Johnson is a senior financial consultant with significant experience in providing strategic financial and management services to water and wastewater clients throughout the Pacific Northwest as well as many locations throughout the U.S. and Canada. Karyn also has an in-depth understanding of the issues facing the Division, having worked with the Division on various financial planning and rate issues, including development of the Division's Water Connection Charge, review of Division staff updates to the Domestic Water rate model, and development of an Irrigation rate model. Other clients with whom Karyn has recently served or is currently working with include Eugene Water and Electric Board and St. Helens, Oregon; Klawock and Ketchikan, Alaska; LOTT, Ocean Shores, and Steilacoom, Washington; and Calgary, Alberta and Kelowna, British Columbia, Canada. If you have any questions or comments, please feel free to call me at (206) 224-4609. Very truly yours, BLACK & VEATCH CORPORATION Pamela R. Lemoine Regional Manager Management Consulting Division BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. / 0 For Meeting of February 19, 2002 ITEM TITLE: Consideration of a Resolution authorizing execution of Modification No. 1 to existing City Contract No., 2001-79 with Black & Veatch, for additional management consulting services related to completion of the Regulatory Compliance and Professional Development Plan, and including addition of sub -consultant Art O'Neal & Associates. SUBMITTED BY: Dueane Calvin, Water/Irrigation Manager Dave Brown, Water/Irrigation Engineer Glenn Rice, Assistant City Manager CONTACT PERSON/TELEPHONE: Dueane Calvin 576-6154 SUMMARY EXPLANATION: The original scope of work for the contract with Black & Veatch (B&V) only addressed the costs of the work to be performed by them during Phase I of the Plan development, and an estimate of costs for work to be undertaken during Phase II. It also mentioned certain activities that would involve the services of Art O'Neal & Associates (O'Neal). However, it was anticipated at that time that O'Neal's services would continue to be provided on a time and materials basis. Subsequently, staff and the Consultants have come to an understanding that O'Neal should have a greater role in the Plan development effort, and are hereby recommending that O'Neal become a sub -consultant of B&V. This will assist the City in tracking time and costs for the Plan development, as well as facilitate efforts to schedule actions and events throughout the Plan development. The current estimated cost for O'Neal's service in completion of Phase I plan development is $12,049, and approximately $30,303 for work during Phase II. As supporting documentation for Modification No. 1, we have included a complete copy of the proposed contract to be entered into between Black & Veatch and Art O'Neal & Associates, upon approval of this Modification. (continued) Resolution X Ordinance Other (Specify) Modification No. 1 Contract Mail to (name and address): Black & Veatch, 720 Third Ave., Suite 1100, Seattle, WA 98104 Attention: Pam Lemoine, Proiect Manager Phone: (206) 682-1133 Funding Source 2001/2002 Wand Irrigation Operating - Funds 474 and 475 APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff recommends approval of the resolution authorizing the City Manager to execute the accompanying contract Modification with Black and Veatch. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted (staff will correct figures in agreement) . RESOLUTION NO. R-2002-15 While conducting `Stakeholder' interviews during early action activities of Phase I, it was asked whether or not the Consultant could accomplish a Division -wide Financial Analysis to identify both the long and short term impacts associated with alternative operating scenarios. The question was asked as a result of alternatives currently being studied relating to the Irrigation Utility's capital program needs. The cost to perform this task is currently estimated to be $15,488 and would be completed as a part of the Phase I activities. All actions and activities in Phase II of the Plan Development program will be designed to build on the results developed during Phase I. This will include the development of strategies and action plans, as well as performance measures, to ensure the successful implementation of the entire Program. Black & Veatch's cost for services to be rendered in Phase II will be $47,246. Phase I, under Original Contract and Modification No. 1: • Black & Veatch: o Original contract $38,323 o Financial Analysis $15,488 • Art O'Neal and Associates $12,049 Subtotal $65,860 Phase II, with Modification No. 1: • Black & Veatch $47,246 • Art O'Neal and Associates $30,303 Subtotal $77,549 Total Amended Contract, Amount not to exceed $143,409 Attachments: Resolution Modification No. 1 Letter for Modifies Scope of Services