HomeMy WebLinkAboutR-1998-012 Agreement / Black & Veatch / Engineering / Financial SoftwareRESOLUTION NO. R-98- 12
A RESOLUTION authorizing execution of a contract with Black & Veatch, for
engineering/financial services related to further development
and completion of financial modeling software, initiated in 1996.
WHEREAS, the City of Yakima has need for consulting services related to
further development and completion of financial modeling software, initiated in
1996; and
WHEREAS, the City does not possess adequate in-house staff, nor the time to
perform the necessary work involved in the further development and completion
of the financial modeling software; 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 engineering/financial services for the
development and completion of said financial modeling software, 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 "Consulting Agreement"
together with its attachments.
ADOPTED BY THE CITY COUNCIL this 20th day of January, 1998.
ATTEST:
L_L
Karen S. Roberts, City Clerk
John Puccinelli, Mayor
AGREEMENT
This Agreement, made and entered into this 20th day of January , 1998, by andtween 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 complete development of financial
modeling tools to update domestic and irrigation water service rates.
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 completion of the development of cost of
service modules; development of modules to assist in the analysis of various aspects of
rate structures; development of a combined evaluation of water and irrigation capital
financial needs, produce a 'letter report summarizing methodology utilized; and to provide
training and 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.
Black & Vetch 1998 Contract
1
C. Re -negotiation of Fees. The Engineer reserves the right to re -negotiate 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 less, 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 furnished 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.
Black & Vetch 1998 Contract
ii
9. OWNERSHIP OF DOCUMENTS The originals of all documents, including drawings and
specifications, prepared by the Engineer shall remain the property of the Engineer. The Engineer
shall provide the City with reproducible and/or non -reproducible copies of the documents,
drawings, and specifications, and other work products as specified in each task order. It may
further be 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 attorney'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 government, 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
Black & Vetch 1998 Contract
iii
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 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 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 additional 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 $250,000.
City shall defend, indemnify and hold Engineer harmless from all claims or liabilities, including
attorney'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 attorney'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 governed by the laws of the State of
Washington.
16. COMPLETE 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
Black & Vetch 1998 Contract
iv
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.
Engineer's 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.
ConsultantOs
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By:
Contract No. 98-11
Resolution No. R-98-12
Black & Vetch 1998 Contract
CF OF YAKIMA
Richard A. Zais, Jr.
City Manager
ATTEST:
�-�?-
Karen S. Roberl'y�,,
City Clerk
V
EXHIBIT A
TASK ORDER(S) & ESTIMATED FEES
SCOPE OF SERVICES
The following tasks have been identified. Detailed descriptions of the background and work plan
for each task is found in the attached task sheets.
Task 1: Water Utility Model Enhancements
Task 2: Capital Financing Options/Water Utility Model
Task 3: Development of an Irrigation Rate Model
Task 4: Development of a Consolidated Water/Irrigation Model
Task 5: Staff training
Task 6: Reports
Task 7: Meetings and Presentations
COST ESTIMATE
The estimated costs to provide the above services, as well as the total hours anticipated for each
task, is shown below.
Cost Estimate Labor Hours
Irrigation Water Total Irrigation Water Total
Task 1 $0 $2,400 $2,400 0 24 24
Task 2 $0 $1,030 $1,030 0 10 10
Task 3 $4,730 $0 $4,730 48 0 48
Task 4 $3,780 $3,780 $7,560 38 38 76
Task 5 $1,895 $1,895 $3,790 18 18 36
Task 6 $2,620 $2,620 $5,240 28 28 56
Task 7 $1,985 $1,985 $3,970 18 18 36
Total
$15,010 $13,710 $28,720 150 136 286
The above cost estimates include direct out-of-pocket expenses including postage, long distance
telephone, reproduction, and travel related expenses. It also includes direct charges for
computer equipment.
Black & Vetch 1998 Contract
Task Order No. 1: Water Utility Model Enhancements
In 1996, Black & Veatch developed cost allocation and rate design modules to enhance
the City's existing Water Utility computer model. These modules allow staff to calculate
allocated costs of service for each customer class, and to design rates to reflect cost of
service and other rate policies. Along with the most recent rate increase, several
customer classes were eliminated and the City implemented rates that reflect a phased
approach in moving toward conservation -oriented rates. During 1997, Black & Veatch
provided further enhancements and improvements to the Water Utility rate model. In this
task, we will complete the enhancements of the water utility model, both to ensure
seamless coordination with the Irrigation Model (Task 3) and Consolidated Model (Task
4), and to allow the most efficient updating of the model in future rate studies. This will
include additional instructions to provide guidance in the interrelationships between the
models, additional graphics capabilities, additional print options and initialization macros
that will allow staff to automatically set up the model for the next budget year.
Task Order No. 1: Authorization to Proceed.
City of Yakima
By: enn Rice, Assistant City Manager
Engineer
/z -37g
Date
--� --c>25 28
By\Pamela l moine, Project Manager Date
Black & Vetch 1998 Contract
Task Order No. 2: Capital Financing Options/Water Utility Model
In the current Water Utility rate model, the revenue requirements section utilizes tables
and spreadsheets developed as part of the completion of the Comprehensive Plan. As
such, capital financing options allowed in the model include only those anticipated to be
used at the time the Comprehensive Plan was completed. Black & Veatch will expand
the capital financing module in the Water Utility Rate model to allow for easier evaluation
of alternative capital financing options, including, but not limited to, rates, revenue bonds,
state revolving fund loans, public works trust fund monies, and/or other grant and loan
programs.
Task Order No. 2: Authorization to Proceed.
City of Yakima
By: GI nn Rice, Assistant City Manager Date
Engineer
y: Pamela emoine, Project Manager Date
Black & Vetch 1998 Contract
Task Order No. 3: Development of an Irrigation Rate Model
Recently, an Irrigation Utility was formally created to allow the City to more accurately and
effectively manage the financial functions of the irrigation system. In order to allow staff
to evaluate costs and design rates that will adequately recover costs, Black & Veatch will
develop an Excel -based Irrigation Utility Rate Model. This model will be developed such
that staff worksheets and presentation tables are of the same format as the Water Utility
Rate Model. This model will provide City staff with the ability to evaluate historical and
projected operating and maintenance expenses, capital improvement programs and
capital financing options to determine the overall level of revenue required. It will also
determine the required rate for irrigation water for selected test years.
Task Order No. 3: Authorization to Proceed.
City of Yakima
By: C len Rice, Assistant City Manager
Engineer
3/147)
Date
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By. Pamela ' . L�ilnoine, Project Manager Date
Black & Vetch 1998 Contract
Task Order No. 4: Development of a Consolidated Water/Irrigation Model
In the future, the City will occasionally be required to evaluate the cost effectiveness of
conducting capital improvements and rehabilitation on certain parts of the irrigation
system. As part of the analysis of these future capital programs, it is reasonable to
evaluate whether or not irrigation customers could more effectively be served by the
domestic water system.
A critical component to the review of capital improvement options is the evaluation of total
costs to both utilities. Black & Veatch will develop a consolidated model that will evaluate
the total costs of the Combined Water and Irrigation Utilities. This consolidated model
will allow for a detailed and complete evaluation of the costs of alternative capital plans,
including conversion of all irrigation customers to the potable water system, rehabilitation
of the irrigation system, or some combination.
The consolidated model will also include several typical bill summaries. The summaries
will include an evaluation of costs incurred by various "typical" customers with both
irrigation and domestic water service, and will reflect not only annual average costs, but
also include detailed tables that provide summaries of costs during the following three
seasons: 1) winter; 2) transition (spring and fall); and 3) summer.
In addition to the development of the model, Black & Veatch will assist City staff in
evaluating alternative capital improvement programs. This evaluation will consider both
the total costs of the programs as well as the impact on domestic -only customers,
irrigation -only customers, and domestic/irrigation customers. Up to three alternatives will
be evaluated for inclusion in the final report (Task 6) and presentation to the City (Task
7).
Task Order No. 4: Authorization to Proceed.
City of Yakima
By: Glenn Rice, Assistant City Manager
Engineer
13c: amela '' . moine, Project Manager
Black & Vetch 1998 Contract
Da e
Date
Task Order No. 5: Staff training
Black and Veatch will provide one-half day of training to city staff in the use of the models
created in Tasks 1-4. The training session will provide staff an opportunity to learn the
features of the enhancements and models developed in Tasks 1-4. Prior to the training
session, Black & Veatch will provide staff with a copy of the models as well as a User
Manual (as described in Task 6 below).
Task Order No. 5: Authorization to Proceed.
City of Yakima
By: Glenn Rice, Assistant City Manager
Engineer
341f8
Date
:::
P meta 1‘
`
B vine, Project Manager Date
Black & Vetch 1998 Contract
Task Order No. 6: Reports
Black & Veatch will provide the City with a letter report summarizing the methodology
used in developing the Irrigation Utility Model (Task 3) and the Consolidated Model (Task
4). The report will include a discussion of the results of the Irrigation Utility analysis and
the Consolidated Utility analysis. It will also describe any data that the City should
consider maintaining to aid in future analyses.
Black & Veatch will also prepare a brief user manual for all models developed, including
the Water Utility Model, the Irrigation Utility Model, and the Consolidated Model.
Task Order No. 6: Authorization to Proceed.
City of Yakima
Engineer
k_
By: GI n ' ice, Assistant Cit Manager
ger
Da
amela 1-moine, Project Manager Date
Black & Vetch 1998 Contract
Task Order No. 7: Meetings and Presentations
As soon as possible upon receiving notice to proceed, Black & Veatch will meet with
appropriate staff to collect remaining data necessary to complete the scope of services,
and to discuss in further detail the objectives of the study. Prior to this meeting, Black
and Veatch will provide a data request to the City to help facilitate data collection.
In addition to the initial meeting and staff training, Black & Veatch will be available to
meet with City staff as requested. For purposes of establishing a budget for this activity,
we have estimated a total of 16 hours and up to 4 meetings. Additional meetings beyond
this level of effort would require an increase to our budget. The scheduling of these
meetings will be at the discretion of City staff.
Upon completion of the work effort, Black & Veatch will present the results of the study to
the City Manager, Assistant City Manager, and/or City Council. This presentation will
include an overview of the methodology used in developing the models, and a summary
of up to three options for providing safe and reliable service (both irrigation and domestic)
to the citizens of Yakima now and in the future.
Task Order No. 7: Authorization to Proceed.
City of Yakima
By: Glenn Rice, Assistant City Manager
En ineer
tAcAzu _V
3/2 r(.1d2
Date
By. mela /C�emoine, Project Manager Date
Pa
Black & Vetch 1998 Contract
EXHIBIT B
Proposed Schedule & Phasing
(Engineer will provided their completed schedule along with the signed Agreement forms to the City)
Black & Vetch 1998 Contract
EXHIBIT C
Fee Schedule
Fees for services estimated in the proceeding tacks, are based on the rate schedule set forth
below. Rates shown include salary costs, overhead costs, and profit. All rate shown are on a per
hour basis.
Partner
Project Manager
Project Staff
Clerical
Black & Vetch 1998 Contract
BLACK & VEATCHLLP
720 Third Avenue, Suite 1100, Seattle, Washington 98104, Tel: (206) 682-1133, Fax: (206) 621-8782
March 12, 1998
Mr. Dueane Calvin
Water and Irrigation Manager
Ciy of Yakima
2301 Fruitvale Blvd.
Yakima, WA 98902
Dear Mr. Calvin:
Black & Veatch became a Limited Liability Partnership (LLP) in July of 1997. As such,
all contracts after that date, including our current contract with you, needs to be with
Black & Veatch LLP instead of simply Black & Veatch.
All partners of the firm, including William G. Stannard, continue to have full
authorization to enter into agreements with clients.
If you have any questions, please feel free to contact me at (206) 224-4609.
Sincerely,
BLACK & VEATCH LLP
�yV ,
Pamela R. Lemoine
Regional Manager
Management Consulting Division
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /c2
For Meeting of 1-20-98
ITEM TITLE: Consideration of a Resolution Authorizing execution of an Agreement with Black &
Veatch, for engineering/financial services related to the further development and
completion of Financial Modeling Software, initiated in 1996.
SUBMITTED BY: Glenn Rice, ACM
Dueane Calvin, Water/Irrigation Manager
CONTACT PERSON/TELEPHONE: Dueane Calvin 576-6154
SUMMARY EXPLANATION:
In 1996 the City undertook the development of financial modeling software for use on personal
computing system, utilizing the services of Black & Veatch to accomplish that development. The
software that was developed at that time provided staff the ability to respond in a timely manner to
Council with additional options and numbers for the "1996 Cost of Service and Rate Study". That
oftware will now provide the foundation for the model that staff is seeking to complete. A
professional services agreement is necessary because the City does not have staff with the
expertise needed, nor the time available to produce the final financial modeling software. Upon
completion the software will be the property of the City.
All provisions of state law and City policy relating to the selection process for a professional services
provider have been followed.
Resolution X Ordinance Contract X Other (specify)
Funding Source Domestic and 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 with Black and Veatch, in an amount not to exceed
$28,720 for the services described therein.
COUNCIL ACTION: