HomeMy WebLinkAboutContract 34185r''ITY SECRETARY''
CONTRACT NO.
CONSULTING SERVICES AGREEMENT
This Agreement ("Agreement"), effective August 11, 2006, is between the City of Fort Worth Water Department (the "Client') and BLACK & VEATCH
CORPORATION ("Consultant"). Consultant shall perform the Scope of Services (Services) set forth in Exhibit A, and Client shall pay Consultant in
accordance with the compensation provisions set forth in Exhibit A.
1. Consultant warrants that it will perform the Services in accordance with the standards of care and diligence normally practiced by recognized
consulting firms in performing services of a similar nature. It during the six month period following the earlier of completion or termination of the
Services, it is shown there is an error in the Services caused solely by Consultant's failure to meet such standards, and Client has promptly notified
Consultant in writing of any such error within that period, Consultant shall perform, at Consultant's cost, such corrective consulting services within
the original Scope of Services as may be necessary to remedy such error. No other warranty, express or implied, is included in this Agreement or in
any drawing, specfcafion, report, or opinion produced pursuant to this Agreement.
2. Consultant shall maintain in force, during the period that Services are performed, workers' compensation insurance in accordance with the laws of
the states having jurisdiction over Consultant's employees who are engaged in the Services and employers liability insurance with a limit of
$100,000 each occurrence and in the aggregate. Consultant also shall maintain commercial general liability insurance with a limit of $1,000,000 per
occurrence and in the aggregate; automobile liability insurance with combined single limit of $1,000,000, and professional liability insurance with
per occurrence and aggregate limits of $1,000,000.
3. Consultant shall indemnify Client against any and all claims, demands and causes of action for bodily injury to or death of persons or for damage to
or destruction of third -party property resulting solely from any and all negligent physical acts of Consultant while at Client's facility. The parties
hereby waive all claims for property damage, and shall require their insurers to waive subrogation rights against the other party under any applicable
policy of property insurance.
4. In performance of the Services, Consultant may be supplied with certain information and/or data by Client and/or others, and Consultant may rely on
such information. It is understood that the accuracy of such information is not within Consultant's control and Consultant shall not be liable for its
accuracy, nor for its verification.
5. At all times, each party shall retain all of its rights in its drawing details, designs, specifications, databases, computer software, copyrights, trade and
service marks, patents, trade secrets, and any other proprietary property, Rights to intellectual property developed, utilized, or modified in the
performance of the Services shall remain the property of Consultant.
6. Client may, with or without cause, terminate the Services at any time upon ten working days written notice to Consultant. In such case, Consultant
shall be paid costs incurred and fees earned to the date of termination and through demobilization and neither party shall be entitled to any other
compensation or damages from the other.
7. Client may audit and inspect Consultant's records and accounts covering reimbursable costs for a period of 6 months following the completion of
Consultant's Services. The purpose of any such audit shall be only for verification of such costs. Consultant shall not be required to keep records of
or provide access to those of its costs expressed as fixed rates, a lump sum, or as a percentage of other costs.
8. Consultant's opinions, estimates, projections, and forecasts of current and future costs, revenues, other levels of any sort, and events shall be made on
the basis of available information and Consultant's expertise and qualifications as a professional. Consultant does not warrant or guarantee that its
opinions, estimates, projections or forecasts of current and future levels and events will not vary from Client's estimates or forecasts or from actual
outcomes.
9. Neither party shall be liable to the other party for loss of profits or revenue; loss of use; loss of opportunity; loss of goodwill; cost of substitute facilities,
goods or services; cost of capital; cost of replacement power; governmental and regulatory sanctions; and claims of customers for such damages; or for
any special, consequential, incidental, indirect or exemplary damages. Except for an obligation to make payments, neither party shall be in default to the
extent any nonperformance is caused by a circumstance beyond such party's reasonable control. Consultant's total aggregate liability under this
Agreement for any reason whatsoever shall not exceed the compensation received by Consultant under this Agreement, and Client agrees to release,
defend, indemnify, and hold Consultant harmless from and against any and all further liability in excess thereof arising in any manner from the
Services. In the event such provision is determined to exceed the maximum scope allowed by law, said provision shall be interpreted and enforced
so as to preserve the indemnity, release or limitation to the maximum extent allowable. The warranties, obligations, liabilities and remedies of the
parties, as provided herein, are exclusive and in lieu of any others available at law, equity or otherwise. To the fullest extent allowed by law, releases
from, and limitations of liability shall apply notwithstanding the breach of contract, tort including negligence, strict liability or other theory of legal
liability of the party released or whose liability is limited. Consultant may subcontract portions of the Services to its related entities.
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This Agreement and the attached Exhibit constitute the entire Agreement. No other representations of any kind, oral or otherwise, shall have any effect.
This Agreement shall be governed by the laws of the state of Missouri, notwithstanding the operation of any conflict or choice of law statutes or decisional
law to the contrary.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples this 11'sday of August, 2006.
CITY(OFFORT WOR BLAC C C O TION:
�`By: C By:
irank Crumb Ray Adams
Water Director Regional Director— Vice President
By:
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Marc Ott
Assistant City Manager
ATTE
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By:
City Secretary NO M&C REQUIRED
APPRO V� I: ROMj�AND `L.I✓bALITY:
By:
Assistant City Attorney
06/27/05
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EXHIBIT A
To the
CONSULTING SERVICES AGREEMENT
City of Fort Worth Water Department
("Client")
and
BLACK & VEATCH CORPORATION
("Consultant", 'B&V" or "Black & Veatch")
Dated August 11, 2006
A Scope of Services:
Attached
B. Comoensation:
$ 22,630.00
C. Invoicing: Commencing on or about the first day of the calendar month following execution of this Agreement, and monthly thereafter,
Consultant shall furnish Client with an invoice covering the Reimbursable Costs and Fee incurred during the previous month and any interest
due under this Agreement. Client shall pay each billing within fifteen (15) days of its receipt.
Select the Anolicable Section D:
Standard Preferred Payment Method
X D. Method of Payment. Payments to be made to Consultant under this Agreement shall be electronically transferred either by ACH,
specifically in CCD+ or CTX format, or wire transfer to the bank account and in accordance with the bank instructions identified in
Consultant's most recent invoice in immediately available funds no later than the payment due date. Invoice number and project name shall
be referenced in the bank wire reference fields or the ACH addenda information.
Alternate Payment Method (Domestic or International)
_D. Method of Payment. Payments to be made to Consultant under the Agreement shall be made by check and mailed to the PO Box
identified in the remittance instructions on the Consultant's most recent invoice, and received by Consultant no later than the payment due
date. The Remittance Advice document shall be mailed with the check to the PO Box.
E. Disputes: In the event Client disputes any invoice item, Client shall give Consultant written notice of such disputed item within ten days
after receipt of such invoice and shall pay to Consultant the undisputed portion of the invoice according to the provisions hereof. If Client
fails to pay any invoiced amounts when due, interest will accrue on each unpaid amount at the rate of ten percent per annum, or the
maximum amount allowed by law if less, from the date due until paid according to the provisions of this Agreement. Interest shall not be .
charged on any disputed invoice item which is finally resolved in Client's favor. Payment of interest shall not excuse or cure any default or
delay in payment of amounts due.
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BLACK & VEATCH
5001 LBJ Freeway, Suite 700
Dallas, Texas 75244
Tel: (972) 715-2622
Frank Crumb
Director
City of Fort Worth Water Department
1000 Throckmorton Street
Fort Worth, TX 76102
Subject: Treatment Benchmarking and Pricing Review
Frank,
Black & Veatch Corporation
July 31, 2006
Black & Veatch is pleased to provide the City of Fort Worth Water Department with this
proposal to assist the City in their evaluation of existing Laboratory Services fees.
The scope for this project will consist of the following items:
1. Project Initiation — meet with Department to determine source of data, gather available
data, & establish project expectations;
2. Revenue Requirement Determination - to analyze the current rate methodologies,
miscellaneous charges, and billing policies in order to gain an understanding of the existing
cost recovery mechanisms of the department;
3. Rates and Charges Analysis — develop rates and charges to adequately recover the costs
of treatment;
4. Computer Model Review — review the adequacy of the current model in capturing the
costs associated with treatment; and
5. Meetings —Meet with staff to report on initial, interim and final findings of the project.
Please find attached our proposed scope of services for this project. We propose to l c�D
attached scope of work for the lump sum of $22,630. Our project team is extremely ' t't off
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building a w0rld of difference-
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August 28, 2006
performing the requested services and look forward to beginning the evaluation. If you have any
questions or need additional information, please call me at (940) 642-1671.
Sincerely,
Black & Veatch Corporation
'R �0'� . c
Richard L. Campbell
Senior Consultant
FoP*,TW0XTH
WITFRDEPwTmENT
PROPOSED SCOPE OF SERVICES
Laboratory Services Benchmarking & Model Review
Based on our understanding of the City's needs, this section presents our proposed project
approach and work plan.
Project Approach
Black & Veatch will conduct comprehensive treatment cost benchmarking and pricing model
review. A maj or goal of the work effort is to provide an independent, expert review of the Utilities'
existing laboratory treatment pricing and charges to identify the extent to which they produce
adequate revenues and whether existing methodologies result in equitable recovery of the
associated costs. This includes benchmarking of the pricing structure with those of other laboratory
facilities and model review to ensure that the current model is capturing all associated treatment
costs.
Our work plan is divided into six tasks, each of which is interrelated:
1. Project Initiation
2. Revenue Requirement Determination
3. Rates and Charges Analyses
4. Computer Model Review
5. Reports and Meetings
TASK 1. PROJECT INITIATION AND DATA COLLECTION.
At the initiation of the project, we will work with the City's Laboratory Services staff to collect and
review basic financial and statistical data provided by the Utility to include historical and current
financial information, reports by others, and operating and capital budgets. Where possible,
financial data will be collected in an electronic format to avoid duplication of effort with regard to
data entry and to ensure data accuracy.
Supplemental Data Request
As the study progresses after initial data is reviewed, we may submit requests for additional
data and/or seek clarification of initial information received, as necessary.
TASK 2. REVENUE REQUIREMENT DETERMINATION.
The purpose of this task will be to analyze the current rate methodologies, miscellaneous charges,
and billing policies in order to gain an understanding of the existing cost recovery mechanisms of
the department. We will conduct a review of the current methodologies the department uses to
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W+ITEP,DMXKTMENT
FoP*,TWoP*,TH
PROPOSED SCOPE OF SERVICES
Laboratory Services Benchmarking & Model Review
develop rates and charges for treatment service. This review will form the foundation for assessing
the adequacy of the existing methodologies to equitably recover costs.
The development of revenue requirements will be based on an examination of historical financial
reports, current operating budgets, and capital improvement programs based on data provided by
Laboratory Services management. Detailed analyses will provide an indication of the degree of
overall adequacy of rates and potential adjustments in respective annual revenue levels needed to
meet the projected revenue requirements of the department.
TASK 3. RATES ANALYSES
Rates and charges designed to recover the costs of treatment will be developed to also recognize
Department's policy objectives.
TASK 4. PRICING DEVELOPMENT MODEL REVIEW AND TRAINING
The purpose of this task is to review the adequacy of the current pricing model in capturing all
costs associated with treatment services.
We will provide one (1) training session that will be conducted at the Department's offices. This
training session will orient staff members in the use of the pricing model.
TASKS. REPORTS AND MEETINGS
We will meet with Department representatives to discuss study progress, report on interim
findings, and present our findings and recommendations. These meetings will be conducted in a
workshop format to encourage an active exchange of information by all participants and provide
a basis for complete understanding of relevant issues. Meetings will include:
✓ Department Staff Meetings
Attend one (1) meeting with Department representatives during the course of the study to
review preliminary findings, discuss alternatives, and reach consensus on recommendations.
✓ Training Meeting
Meet with the Department staff to provide one (1) training session in the use of the pricing
model
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FoP,TWOP,TH PROPOSED SCOPE OF SERVICES
Laboratory Services Benchmarking & Model Review
WATFRDEPAfZ1 mEw
✓ Additional Meetings
At the City's discretion we will be available for additional meetings with City staff.
Project Schedule
Normally, 45 to 60 days are required to conduct financial planning/rate benchmarking studies for
utilities, depending on the number of meetings, timeliness in receiving needed data, and client
availability to review interim results. We have committed the necessary resources to ensure that
the study is completed in a timely manner and within budget. It is our commitment to complete
the study within 60 days to the point of having recommendations available for the Utility's
review.
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