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HomeMy WebLinkAboutR-1996-132 Contract / Black & Veatch / Cost of service Models / Water DivisionRESOLUTION NO. R- 96- 132 A RESOLUTION authorizing execution of a contract for engineering services with Black & Veatch. WHEREAS, the City of Yakima has need for consulting engineering services to assist in the development of cost of service models for the Water Division; and WHEREAS, the City does not possess adequate staff, nor the time to fully perform the necessary work involved in the development of the computerized financial modules; and WHEREAS, the City of Yakima has complied with the provisions of RCW 39.80 which concerns the procurement of engineering and architectural services by a city; and WHEREAS, the City Council deems it to be in the best interest of the City to contract with Black & Veatch, for the services necessary to assist in the design and production of the financial modeling tools, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager, City Clerk, and the Assistant City Manager are hereby authorized and directed to execute the attached and incorporated "Agreement" together with its attachments, including Task Order 1. ADOPTED BY THE CITY COUNCIL this 1st day of October ATTEST: Karen Roberts, City Clerk , 1996. Lynn Buchanan, Mayor AGREEMENT This Agreement, made and entered into this day of , 199, by and between the City of Yakima, Washington, hereinafter called the "CITY", and Black & Veatch, • Consulting Engineers, hereinafter called "ENGINEER", is for the provision by the Engineer to the City, professional services in support of the City's efforts to construct modeling tools to update domestic water service rates. t In consideration of the covenants and agreements contained herein, and the terms and conditions hereof, the parties agree as follows. the Engineer shall provide services to assist in the development of cost of service modules, development of modules to assist in the analysis of various aspects of rate structures; produce a 'letter' report summarizing methodology utilized; and to provide additional assistance on an as needed basis 1. SERVICES Engineer shall provide the City, professional consulting engineering services through a series of task orders as provided in Section 2, below The professional services to which the parties may agree by task orders may include, but are not limited to those listed in Exhibit A, attached hereto and by this reference incorporated herein. 2. TASK ORDERS Prior to commencement of any services, the City and Engineer shall mutually agree upon and execute a task order for the specified services. The task order shall describe the services to be provided, the time for performance of the service, the provisions for fees for the services, and any provisions additional to this agreement. Execution of this Agreement and Task Order No., 1 by the City and the Engineer authorizes the Engineer to proceed with the services described in Task Order No , 1 Execution of each subsequent task order shall incorporate each subsequent task order into this agreement. The execution of this agreement does not obligate either of the parties hereto to provide or accept any services unless and until the parties have mutually agreed upon and executed a specific task order for such services. 3. TIME PERIOD FOR PERFORMANCE OF SERVICES The Engineer shall commence such services as are described on executed task orders in accordance with the time schedule set forth therein, and shall proceed with the provision of such services in a diligent manner The Engineer shall not be responsible for delays caused by factors beyond the Engineer's control or which could not reasonably have been foreseen by the parties at the time the task order was executed. The anticipated schedule for the project is shown as Exhibit B 4. PAYMENT TO ENGINEER A. Fees for Services. For each specified task order executed by the parties, the payment to be made to the Engineer for services performed shall be either (1) a fixed fee amount, or (2) pay the Engineer utilizing the hourly rate and expense schedule, "Fee Schedule", attached hereto as Exhibit C and by this reference incorporated herein. Said fee Schedule is subject to revision by the Engineer not sooner than one year after the execution of this agreement, and no more that once each year thereafter Under the fee schedule method, the parties shall agree on an amount which represents the maximum fee to which Engineer shall be entitled under that task order That amount shall represent the best estimate of the parties of the maximum cost of the Engineer's services specified in that task order In the event the cost of services will exceed that estimate, the Engineer shall advise the City in advance, and in writing of such excess costs and shall provide no services in excess of the original estimated costs, without written approval of the City B. Estimated Fees. The estimated fees for anticipated task orders are shown in Exhibit A. WTRARRG96 1 C Renegotiation of Fees. The Engineer reserves the right to renegotiate the fee or estimate of fee specified in any task order if the scope of services as specified in the task order is modified by the City or by others or by conditions beyond the control of the parties hereto, whereupon additional expenses shall be incurred by the Engineer The City and the Engineer shall agree to such a change in fee and services in writing prior to the Engineer's provision of such modified or changed services D Time of Payments. Engineer shall periodically submit invoices for the un -billed portion of the services completed to that date. City agrees to pay the invoiced amounts within 30 days from the date of receipt of the invoice The invoice format and complete billing instructions are contained in Exhibit D which are incorporated and made a part of this agreement. City agrees to pay Engineer a late charge of 1 5 percent per month or the maximum amount allowed by law, if Tess, on all amounts remaining unpaid, starting 45 days following the invoice date City agrees to assess and pay the late charge without further invoicing from Engineer In the event City questions some element of an invoice, that fact shall be made known to the Engineer immediately Engineer will assist effect resolution and transmit a revised invoice as necessary Amounts not questioned by City shall be promptly paid to Engineer in accordance with the above payment procedures. E. Payment in the Event of Termination. In the event of termination of this Agreement, Engineer shall be compensated for services performed under this Agreement to the date of termination in accordance with the terms above F Permits and Advertising City shall pay all regulatory permitting and advertising fees and all other project fees normally paid by the City for public works projects 5. STANDARD OF PERFORMANCE Engineer shall perform his services in accordance with generally accepted engineering and consulting standards and shall be responsible for the technical soundness and accuracy of all work and services fumished pursuant to this Agreement. The work to be performed under this agreement for professional services shall be done under the direct supervision of Pamela R. Lemoine who will serve as Project Manager It is agreed that other staff members may perform tasks under Ms Lemoine's direction. However, should Ms Lemoine be unavailable to serve as Project Manager, this agreement will be subject immediate termination 6. TERMINATION Either party may terminate this Agreement at any time upon 30 days written notice to the other party 7 OPINIONS OF COST Engineer has no control over the cost of labor, materials, equipment, or services provided by parties other than Engineer and its subcontractors Engineer has no control over contractor's methods of determining prices, or other competitive bidding conditions or market conditions, and its opinions of probable project or construction costs are to be made on the basis of its experience with the construction industry However, Engineer cannot and does not guarantee that proposals, bids, or actual project or construction costs will not vary from the opinions of probable costs prepared by the Engineer 8. CONSTRUCTION AND SAFETY Engineer shall not be responsible for the means, methods, techniques, sequences, or procedures of construction selected by contractors or the safety precautions and programs and programs incident to the work of contractors. 9. OWNERSHIP OF DOCUMENTS The originals of all documents, including drawings and WTR/IRRG96 1.1 specifications, prepared by the Engineer shall remain the property of the Engineer The Engineer shall provide the City with reproducible and/or nonireproducible copies of the documents, drawings, and specifications, and other work products as specified in each task order It may further be 110 required that the engineer provided additional copies on computer media of all documents, drawings, and specifications, and other work products as specified in each task order Such documents, ® drawings, and specifications are not intended or represented by the Engineer to be suitable for reuse by the City or others on extensions of the services provided for the intended project or on any other project. Any reuse without the written verification or adaptation by the Engineer will be at the City's sole risk and without liability or exposure to the Engineer, and the City shall indemnify and hold harmless the Engineer from all loses, claims, damages, and expenses, including attomey's fees arising out of or resulting therefrom. Any such verifications or adaptations by the Engineer will entitle the Engineer to further compensation at rates agreed to by the parties. Engineer shall provide a reproducible copy of the final record drawings showing the construction project measurements when authorized to do so by task order 10 DESIGN INTENT Engineer shall prepare design documents, drawings, and specifications with the understanding that he may be observing the quality and progress of resulting construction, for compliance with the intent design, and furthermore that such observation of any construction will be compensated by the City at the rates agreed upon by the parties hereto 11 INDEMNITY The Engineer shall defend, indemnify, and hold harmless City from any and all claims or liabilities, including reasonable attorneys fees, arising out of Engineer's negligent performance of this Agreement. Engineer shall comply with all federal govemment, state and local laws and ordinances applicable to the work to be performed under this Agreement. Prior to beginning work under this Agreement, Engineer shall provide "Certificates of Insurance" as evidence that policies providing the following coverage and limits of insurance are in full force and effect. A. General Comprehensive Liability With respect to liability for injuries to or death of persons and with respect to liability for destruction of or damages to property, the insurance coverage shall be $500,000 combined single limit and such coverage shall include the special provisions listed below 1 The City, its officers, employees, and agents shall be named as an additional insured and the coverage shall be applicable to and protect the City, its officers, employees, and agents from liability arising from or relating to Engineer's activities relating to this Agreement. Such insurance shall be primary and other insurance maintained or carried by the City shall be separate and distinct and shall nor be contributing with the insurance listed hereunder 2 Such insurance shall not include explosion, collapse, or underground exclusions commonly referred to as the "XCU" hazards. B Automobile Comprehensive Liability With respect to liability for injury to or death of persons and with respect to liability for destruction of or damage to property, the City, its officers, employees, and agents "gm shall be named as additional insured and the insurance coverage shall be $500,000 combined single limit. Such insurance shall be primary and other insurance WTR/IRRG96 111 maintained or carried by the City shall be separate and distinct and shall not be contributing with the insurance listed hereunder Failure of either or all of the named insured to report a claim under such insurance shall not prejudice the rights of the City, its officers, employees, and agents thereunder The City, its officers, employees, and agents will have no obligation for the payment of premiums because of its being named as additonal insured under such insurance. Prior to beginning work for property acquisition, development of contract plans and specifications, and construction management, the Engineer or its subcontractors shall provide evidence of errors and omissions coverage for a minimum of $25Q,000 City shall defend, indemnify and hold Engineer harmless from all claims or liabilities, including attomey's fees, arising out of City's negligent acts 12. ATTORNEY'S FEES In the event suit or legal action is instituted to enforce any of the terms or conditions of this Agreement, venue shall be in Superior Court for Yakima County The losing party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statute, such sum as the court may judge reasonable as attomey's fees in such suit or action, in both trial and appellate courts 13. ADDITIONAL SERVICES At the City's option and direction, Engineer shall provide additional engineering, observation, and/or planning services as authorized by mutually agreed task orders 14. INDEPENDENT CONTRACTOR The parties intend that Consultant at all times be an independent contractor and not an employee of the City, and shall not be entitled to compensation or benefit of any kind except as specifically provided for herein. 15. GOVERNING LAWS This Agreement is govemed by the laws of the State of Washington. 16. COMP!_ETE AGREEMENT This agreement and referenced attachments contains the complete and integrated understanding and agreement between the parties and supersedes any understanding, agreement or negotiation whether oral or written not set forth herein. Amendments, changes, or modifications hereto shall not be valid unless in writing and duly executed by both parties 17 NO THIRD PARTY BENEFICIARIES OTHER THAN THE STATE OF WASHINGTON The agreement gives no rights to anyone other than the City , Engineer, and the State of Washington, and has no other third -party beneficiaries. 18. ASSIGNMENT Neither party to this Agreement shall assign the Agreement, nor any interest arising herein, without the written consent of the other The Engineer, with the City's consent, shall be authorized to employ or subcontract with any other party or entity it deems necessary for the performance of any of the services to be provided by the Engineer pursuant to the terms of this Agreement. 19. SEVERABILITY OF AGREEMENT In the event any of the terms or clauses of this Agreement is held to be illegal or unenforceable by any court or arbitrator, the remaining clauses and terms shall continue in full force and effect and shall be enforceable 20. MINORITY- AND WOMAN -OWNED BUSINESS. CITY -SPECIFIED SUBCONTRACTORS Engineer will comply with the City's directives in utilizing the services 'of City -specified subcontractors and/or minority and women -owned businesses on the Project. The firm selected by Engineer to meet said directives will be subject to approval by the City WTR/IRRG96 iv • • Engineers liability arising from the work of said subcontractors or businesses is limited to proceeds available from their insurance. 21 STANDARD OF CARE, Engineer shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional engineer under similar circumstances No other warranty, express or implied, is included in this Agreement or in any drawing, specification, report, or opinion produced pursuant to this Agreement. 22. LIMITATIONS To the fullest extent permitted by law, Engineer shall not be liable to City for any special, indirect, or consequential damages resulting in any way from the performance of the services stipulated herein. To the fullest extent permitted by law, Engineer's total liability to City for all claims, losses, damages, and expenses resulting in any way from the performance of the services shall not exceed the total compensation received by Engineer under this Agreement. Black &Veatch CITY By. '()/t' William G Sfa Senior Partner By. Richard A. Zai City Manager ATTEST. Karen S Roberts City Clerk Cm CONTRACT No: Resau!JON NO: �CN�C � 0/ V/94, v EXHIBIT A TASK ORDER(S) & ESTIMATED FEES The cost estimate for Tasks 1 through 3 of the services required in this Agreement are shown in the table immediately following. Expenses include direct out-of-pocket expenses and direct charges for computer equipment. Out-of-pocket expenses include such things as travel, communications, postage, and reproduction costs Task Labor Hours Labor Costs ($) Expenses ($) Total {$) 1 104 6,800 770 7,570 2 40 2,800 230 3,030 3 19 1,200 200 1,400 Subtotal 163 10,800 1,200 12,000 Task No , 4, ongoing assistance, will be billed on an hourly basis, with prior approval, based on the hourly rates shown below Partner $200 Project Manager $105 Project Staff $ 85 Cleric I $ 39 In addition to the above hourly rates, direct out-of-pocket expenses specifically related to services provided under Task 4 would be billed at cost. Computer costs are also recovered through a special billing rate and would be applied to the hours billed under this Task. Task Labor Hours Labor Costs ($) Expenses ($) Total {$) 4 Cost not to exceed 4,000 Total of the Services require by this Agreement. $16,000 WTR/IRRG96 • • • • • Task Order No 1: Development of Cost Allocation and Rate Design Modules Black and Veatch will develop cost allocation, rate design, and typical bill modules to incorporate into the City's current financial planning spreadsheet model. The modules will be designed to allow staff to complete rate updates in-house Cost Allocation Module - will be designed to allocate costs for a specified test year to functional components (i e , base, max day, max hour, customer costs, meter costs, direct assigned) and further to Customer classes Allocation to customer classes will be necessary to develop equitable rates if a conservation oriented rate structure is implemented. Rate Design/Typical Bill Module - will be developed to reflect the proposed conservation oriented rate structure The module will he designed to allow for the development of cost of service rates as well as proposed rates (allowing for a phase-in to cost of service or other policy considerations) Prior to completing the modules, Black and Veatch will provide a data request to the City The data collected will be used in the final development the modules. Black and Veatch will also coordinate a telephone conference with City staff to discuss in further detail the objectives of the study Task Order No. 1 • Authorization to Proceed. City of Ya /O//,'‘ By % - nn Rice, Assistant City Manager Date WTRARRG96 -&O /0 -7 -9 -Co irje, Project Manager Date • Task Order No 2: - Development of Phase-in Plan Black and Veatch will provide an allowance of 40 hours of staff assistance in developing a phase-in plan for the rate structure to be proposed by staff The plan could include both a phase-in to the proposed rate structure as well as a phase-in of cost recovery between customer classes. Depending on the adjustments necessary to reach the proposed rate structure, the phase-in could be over a four to five year period. If, after the completion of Tasks 1 and 2, it is determined that additional effort is required, that effort could be performed under Task 4 Task Order No. 2: Authorization to Proceed. City of Yakima pr? Fe( By` Glenn Rice, Assistant City Manager Date E ineer By a e 0 la R. L m " e, Project Manager Date • WTR/IRRG96 • • • Task Order No 3: - Letter Report Black and Veatch will provide the City with a letter report summarizing the methodology used in developing the cost allocations for the water utility, as well as the development of proposed rates Task Order No. 3. Authorization to Proceed. City of Yakima Manager GCenn Rice, Assista City Engineer Date r By Pamela R. em, ine, Project Manager Date WTRARRG96 • • 1 • Task Order No 4: - Ongoing Assistance Black and Veatch will provide additional assistance on an as needed basis Such assistance could include participation in City Council or Citizen committee workshops, public hearings, or formal City Council presentations, additional staff training, or additional analysis or studies. Task Order No. 4. Authorization to Proceed. City of Yakima B Glenn Rice, Assis nt Ci Manager anager Engi 7' mels WTR RG98 (o— Date Date • • EXHIBIT C FEE SCHEDULE Fees for services estimated in the proceeding tasks, are based on the rate schedule set forth below Rates shown include salary costs, overhead costs, profit. All rates shown are on a per hour basis Partner $200 Project Manager $105 Project Staff $ 85 Clerical -- $ 39 In addition to the above hourly rates, direct out-of-pocket expenses specifically related to services provided under the terms of this agreement will be billed at cost. Computer costs are also recovered through a special billing rate and would be applied to the hours billed under the various tasks. EXHIBIT B PROPOSED SCHEDULE & PHASING (Engineer will provided their completed schedule along with the signed Agreement forms to the City) do • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No / For Meeting of 10-1-96 ITEM TITLE. Consideration of a Resolution Authorizing execution of an Agreement with Black & Veatch for engineering services to assist staff in developing cost of service models for the Water Division. SUBMITTED BY Glenn Rice, ACM Dueane Calvin, Wa{er/Irrigation Manag CONTACT PERSON/TELEPHONE. Dueane Calvin 576-6154 SUMMARY EXPLANATION Staff respectfully requests City Council approve the attached resolution authorizing the City Manager to execute the accompanying contract with Black & Veatch, Seattle, Washington to provide assistance in the development of computerized cost of service models for the City The estimated fee for assistance in developing the financial modeling tools will not exceed $16,000 00, and which costs will be paid for from Water Capital Resources IPSeveral issues are before the City's Water/Irrigation Division with regard to system maintenance, upgrades, and possible expansion require in-depth analysis the Divisions financial needs and capabilities Many of these issues have been identified within the City's recently approved Water Comprehensive Plan (Plan), or are the direct results of on-going evaluations and updates of that plan. Other issues revolve around items such as Acquavella, Safe Drinking Water Act compliance, criteria appurtenant to obtaining outside funding through the Centennial Clean Water Fund, PWTF, State Revolving Loan Fund, etc. ( continued ) Resolution X Ordinance Contract X Other (specify) Funding Source Water Capital Resources #477 APPROVED FOR SUBMITTAL. City Manager STAFF RECOMMENDATION Staff recommends approval of the resolution authorizing the City Manager to execute the accompanying contract with Black & Veatch, for the services described stherein. o COUNCIL ACTION Resolution adopted. Resolution No. R-96-132 The need to implement elements contained in the Plan have reached a point of being critical Many of the elements of the Plan were initially identified in 1993-1994 evaluations, which indicated that these elements would need to be addressed in the immediate future. That same plan addressed the need to not only analyze the physical plant and support services, but analyze the financial position of the WaterDivision, it's current capabilities, and it's future capabilities to meet the financial demand required by the Comprehensive Plan. 1994 Water Comp Plan Elements One of the major elements in the Plan indicated that without implementation of the conservation measures, the City would be forced to expand the water treatment plant, and/or obtain new ground water supplies(wells) in the immediate future During the course of the past summer, the plant has been at or near 23 mgd. The present plant capacity is 25 mgd • The recommended water conservation program for Yakima consists of implementation of several measures, including but not limited to • Program promotion/public education • Meter replacement program • Leak detection • New plumbing code • Irrigation efficiency • Conservation pricing Continuation of program promoting water conservation and the leak detection, and also the continuance of two measures that have already been implemented (meter replacement and the enforcement of the new plumbing code, which requires conservation fixtures for new or rehabilitated structures) The programmatic measures, proposed in the Plan will result in increased water savings as conservation becomes an accepted practice in Yakima. With full implementation of the conservation program, it is expected that Yakima can save approximately 1 6 mgd by 2000 This represents a 9 percent decrease in the average day demand and a 6 percent decrease in the maximum day demand. By 2014, a total reduction of 4 7 mgd is expected, a good portion of this from new water - efficient fixtures that required to be utilized as old fixtures are replaced. A reduction of this magnitude could well mean that an increase in the City's total water supply capacity (treatment plant and wells) can be deferred past the end of the 20 year planning horizon of the Plan. With the recent use of the City's wells, it has become apparent that the ground water sources available to the City are being depleted, especially with the advent of the County completing a major well in the same aquifer Not only are ground water sources becoming harder to obtain, the outcome amof Acquavella could also have major impacts our ability to obtain adequate surface water, even if we have the water treatment plant in place to treat the water Sinancial Impacts • Given the Plan requirements described above and the potential impacts of such outside influences as the Acquavella case, the Safe -Drinking Water Act, and other mandates, the City is faced with a critical decision regarding it's financial cost of service structure for water service The existing cost of service system is regressive, so to conserve means Tess resources available to be applied to Capital Facilities Projects, as well as system operation and maintenance The immediate need is to build a set of computer programs that will be available to assist in the development of new cost of service structures, a set of programs that can meet our needs as they change and evolve in the future. The system that is now required, must have the ability to perform detailed evaluation of cost -of -service study based on customer classes, readily make adjustments based on cost -of -service for various rate blocks, including fire protection Then to be able to develop non-discriminatory rates that will give us the ability to equitably recover all costs associated with the operation, maintenance, and construction needs of the domestic water system Again, a financial model which is flexible enough that as programs, and fiscal requirements change it will be able to meet those demands on into the future