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HomeMy WebLinkAboutContract 34263CITY SECRETARY CITY OF FORT WORTH, TEXAS CONTRACT No. SECRETARY AGREEMENT FOR ENGINEERING SERVICES This AGREEMENT is between the City of Fort Worth (the "CITY"), and HDR Engineering, Inc. (the "ENGINEER"), for a PROJECT generally described as: Development Of Water and Wastewater Utilities Growth Management and Extension Policies for the Extraterritorial Jurisdiction of the City of Fort Worth, Texas. Article I Scope of Services A. The Scope of Services is set forth in Attachment A. Article II Compensation A. The ENGINEER's compensation is set forth in Attachment B. Article III Terms of Payment Payments to the ENGINEER will be made as follows: A. Invoice and Payment (1) The Engineer shall provide the City sufficient documentation to reasonably substantiate the invoices. (2) The ENGINEER will issue monthly invoices for all work performed under this AGREEMENT. Invoices are due and payable within 30 days of receipt. (3) Upon completion of services enumerated in Article I, the final payment of any balance will be due within 30 days of receipt of the final invoice. (4) In the event of a disputed or contested billing, only that portion so contested will be withheld from payment, and the undisputed portion will be paid. The CITY will exercise reasonableness in contesting any bill or portion thereof. No interest will accrue on any contested portion of the billing until mutually resolved. (5) If the CITY fails to make payment in full to ENGINEER for billings contested in good faith within 60 days of the amount due, the ENGINEER may, after giving 7 days' written notice to CITY, suspend services under this AGREEMENT until paid in full, including interest. In the event of suspension of services, the ENGINEER sh iability to CITY for II€\Ij,. delays or damages caused the CITY because of such suspension of services. Article IV Obligations of the Engineer Amendments to Article IV, if any, are included in Attachment C. A. General The ENGINEER will serve as the CITY's professional engineering representative under this Agreement, providing professional engineering consultation and advice and furnishing customary services incidental thereto. B. Standard of Care The standard of care applicable to the ENGINEER's services will be the degree of skill and diligence normally employed in the State of Texas by professional engineers or consultants performing the same or similar services at the time such services are performed. C. Subsurface Investigations (1) The ENGINEER shall advise the CITY with regard to the necessity for subcontract work such as special surveys, tests, test borings, or other subsurface investigations in connection with design and engineering work to be performed hereunder. The ENGINEER shall also advise the CITY concerning the results of same. Such surveys, tests, and investigations shall be furnished by the CITY, unless otherwise specified in Attachment A. (2) In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect the total PROJECT cost and/or execution. These conditions and cost/execution effects are not the responsibility of the ENGINEER. D. Preparation of Engineering Drawings The ENGINEER will provide to the CITY the original drawings of all plans in ink on reproducible plastic film sheets, or as otherwise approved by CITY, which shall become the property of the CITY. CITY may use such drawings in any manner it desires; provided, however, that the ENGINEER shall not be liable for the use of such drawings for any project other than the PROJECT described herein. E. Engineer's Personnel at Construction Site (1) The presence or duties of the ENGINEER's personnel at a construction site, whether as on -site representatives or otherwise, do not make the ENGINEER or its personnel in any way responsible for those duties that belong to the CITY and/or the CITY's construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the Contract Documents and any health or safety precautions required by such construction work. The ENGINEER and its personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions. (2) Except to the extent of specific site visits expressly detailed and set forth in Attachment A, the ENGINEER or its personnel shall have no obligation or responsibility to visit the construction site to become familiar with the progress or quality of the completed work on the PROJECT or to determine, in general, if the work on the PROJECT is being performed in a manner indicating that the PROJECT, when completed, will be in accordance with the Contract Documents, nor shall anything in the Contract Documents or the agreement between CITY and ENGINEER be construed as requiring ENGINEER to make exhaustive or continuous on -site inspections to discover latent defects in the work or otherwise check the quality or quantity of the work on the PROJECT. If, for any reason, the ENGINEER should make an on -site observation(s), on the basis of such on -site observations, if any, the ENGINEER shall endeavor to keep the CITY informed of any deviation from the Contract Documents coming to the actual notice of ENGINEER regarding the PROJECT. (3) When professional certification of performance or characteristics of materials, systems or equipment is reasonably required to perform the services set forth in the Scope of Services, the ENGINEER shall be entitled to rely upon such certification to establish materials, systems or equipment and performance criteria to be required in the Contract Documents. F. Opinions of Probable Cost, Financial Considerations, and Schedules (1) The ENGINEER shall provide opinions of probable costs based on the current available information at the time of preparation, in accordance with Attachment A. (2) In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the PROJECT, the ENGINEER has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or Zr 'tY r,?ntf cr7°7 maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by third parties; quality, type, management, or direction of operating personnel; and other economic and operational factors that may materially affect the ultimate PROJECT cost or schedule. Therefore, the ENGINEER makes no warranty that the CITY's actual PROJECT costs, financial aspects, economic feasibility, or schedules will not vary from the ENGINEER's opinions, analyses, projections, or estimates. G. Construction Progress Payments Recommendations by the ENGINEER to the CITY for periodic construction progress payments to the construction contractor will be based on the ENGINEER's knowledge, information, and belief from selective sampling and observation that the work has progressed to the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by the ENGINEER to ascertain that the construction contractor has completed the work in exact accordance with the Contract Documents; that the final work will be acceptable in all respects; that the ENGINEER has made an examination to ascertain how or for what purpose the construction contractor has used the moneys paid; that title to any of the work, materials, or equipment has passed to the CITY free and clear of liens, claims, security interests, or encumbrances; or that there are not other matters at issue between the CITY and the construction contractor that affect the amount that should be paid. H. Record Drawings Record drawings, if required, will be prepared, in part, on the basis of information compiled and furnished by others,and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. The ENGINEER is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. I. Minority and Woman Business Enterprise (M/WBE) participation jss.�d In accord with City of Fort Worth Ordinance No. 1-33-699- the City has goals for the participation of minority business enterprises and woman business enterprises in City contracts. Engineer acknowledges the M/WBE goal established for this contract and its commitment to meet that goal. Any misrepresentation of facts (other than a negligent misrepresentation) and/or the commission of fraud by the Engineer may result in the termination of this agreement and debarment from participating in City contracts for a period of time of not less than three (3) years. J. Right to Audit (1) ENGINEER agrees that the CITY shall, until the expiration of three (3) years after final payment under this contract, have access to and the right to -� -- examine and photocopy any directly pertinent books, documents, papers and records of the ENGINEER involving transactions relating to this contract. ENGINEER agrees that the CITY shall have access during normal working hours to all necessary ENGINEER facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The CITY shall give ENGINEER reasonable advance notice of intended audits. (2) ENGINEER further agrees to include in all its subconsultant agreements hereunder a provision to the effect that the subconsultant agrees that the CITY shall, until the expiration of three (3) years after final payment under the subcontract, have access to and the right to examine and photocopy any directly pertinent books, documents, papers and records of such subconsultant, involving transactions to the subcontract, and further, that the CITY shall have access during normal working hours to all subconsultant facilities, and shall be provided adequate and appropriate work space, in order to conduct audits in compliance with the provisions of this article together with subsection (3)hereof. CITY shall give subcon- sultant reasonable advance notice of intended audits. (3) ENGINEER and subconsultant agree to photocopy such documents as may be requested by the CITY. The CITY agrees to reimburse ENGINEER for the cost of copies at the rate published in the Texas Administrative Code in effect as of the time copying is performed. K. ENGINEER's Insurance (1) Insurance coverage and limits: ENGINEER shall provide to the City certificate(s) of insurance documenting policies of the following coverage at minimum limits that are to be in effect prior to commencement of work on the PROJECT: Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate Automobile Liability $1,000,000 each accident on a combined single limit or $250,000 Property Damage $500,000 Bodily Injury per person per occurrence A commercial business policy shall provide coverage on "Any Auto", defined as autos owned, hired and non -owned when said vehicle is used in the course of the PROJECT. Worker's Compensation Coverage A: Statutory limits Coverage B: Employer's Liability $100,000 each accident $500,000 disease - policy limit $100,000 disease - each employee Professional Liability $1,000,000 each claim $2,000,000 aggregate Professional liability shall be written on a claims -made basis and shall contain a retroactive date prior to the date of the contract or the first date of services to be performed, whichever is earlier. Coverage shall be maintained for a period of 5 years following the completion of the contract. An annual certificate of insurance specifically referencing this project shall be submitted to the City for each year following completion of the contract. Under no circumstances shall a "claims -made and reported policy or provision" be acceptable to the City. (2) Certificates of insurance evidencing that the ENGINEER has obtained all required insurance shall be delivered to the CITY prior to ENGINEER proceeding with the PROJECT. (a) Applicable policies shall be endorsed to name the CITY an Additional Insured thereon, as its interests may appear. The term CITY shall include its employees, officers, officials, agents, and volunteers as respects the contracted services. (b) Certificate(s) of insurance shall document that insurance coverage specified in this agreement are provided under applicable policies documented thereon. (c) Any failure on part of the CITY to request required insurance documentation shall not constitute a waiver of the insurance requirements. (d) A minimum of forty-five (45) days notice of cancellation or material change in coverage shall be provided to the CITY. A ten (10) days notice shall be acceptable in the event of non-payment of premium. Such terms shall be endorsed onto ENGINEER's insurance policies. Notice shall be sent to the respective Department Director (by name), City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102. (e) Insurers for all policies must be authorized to do business in the State of Texas and have a minimum rating of A: VII in the current A.M. Best Key Rating Guide or have reasonably equivalent financial strength and solvency to the satisfaction of Risk Management. (f) Deductible limits, or self insured retentions, affecting insurance required herein shall be acceptable to the CITY in its sole discretion; and, in lieu of traditional insurance, any alternative coverage maintained through insurance pools or risk retention groups must be also approved. Dedicated financial resources or letters of credit may also be acceptable to the City. (g) Applicable policies shall each be endorsed with a waiver of subrogation in favor of the CITY as respects the PROJECT. (h) The City shall be entitled, upon its request and without incurring expense, to review the ENGINEER's insurance policies including endorsements thereto and, at the CITY's discretion, the ENGINEER may be required to provide proof of insurance premium payments. (i) The Commercial General Liability insurance policy shall have no exclusions by endorsements unless the CITY approves such exclusions. 0) For all lines of coverage underwritten on a claims -made basis, other than Professional Liability, the retroactive date shall be coincident with or prior to the date of the contractual agreement. The certificate of insurance shall state both the retroactive date and that the coverage is claims -made. (k) The CITY shall not be responsible for the direct payment of any insurance premiums required by this agreement and all insurance required in this section, with the exception of Professional Liability, shall be written on an occurrence basis. (1) Sub consultants and subcontractors to/of the ENGINEER shall be required by the ENGINEER to maintain the same or reasonably equivalent insurance coverage as required for the ENGINEER. When sub consultants/subcontractors maintain insurance coverage, ENGINEER shall provide CITY with documentation thereof on a certificate of insurance. L. Independent Consultant The ENGINEER agrees to perform all services as an independent consultant and not as a subcontractor, agent, or employee of the CITY. M. Disclosure The ENGINEER acknowledges to the CITY that it has made full disclosure in writing of any existing conflicts of interest or potential conflicts of interest, including personal financial interest, direct or indirect, in property abutting the proposed PROJECT and business relationships with abutting property cities. The ENGINEER further acknowledges that it will make disclosure in writing of any conflicts of interest that develop subsequent to the signing of this contract and prior to final payment under the contract. N. Asbestos or Hazardous Substances (1) If asbestos or hazardous substances in any form are encountered or suspected, the ENGINEER will stop its own work in the affected portions of the PROJECT to permit testing and evaluation. (2) If asbestos or other hazardous substances are suspected, the ENGINEER will, if requested, assist the CITY in obtaining the services of a qualified subcontractor to manage the remediation activities of the PROJECT. O. Permitting Authorities - Design Changes If permitting authorities require design changes so as to comply with published design criteria and/or current engineering practice standards which the ENGINEER should have been aware of at the time this Agreement was executed, the ENGINEER shall revise plans and specifications, as required, at its own cost and expense. However, if design changes are required due to the changes in the permitting authorities' published design criteria and/or practice standards criteria which are published after the date of this Agreement which the ENGINEER could not have been reasonably aware of, the ENGINEER shall notify the CITY of such changes and an adjustment in compensation will be made through an amendment to this AGREEMENT. Article V Obligations of the City Amendments to Article V, if any, are included in Attachment C. A. City -Furnished Data The CITY will make available to the ENGINEER all technical data in the CITY's possession relating to the ENGINEER's services on the PROJECT. The ENGINEER may rely upon the accuracy, timeliness, and completeness of the information provided by the CITY. B. Access to Facilities and Property The CITY will make its facilities accessible to the ENGINEER as required for the ENGINEER's performance of its services and will provide labor and safety equipment as required by the ENGINEER for such access. The CITY will perform, at no cost to the ENGINEER, such tests of equipment, machinery, pipelines, and other components of the CITY's facilities as may be required in connection with the ENGINEER's services. The CITY will be responsible for all acts of the CITY's personnel. C. Advertisements, Permits, and Access Unless otherwise agreed to in the Scope of Services, the CITY will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities; and land, easements, rights -of -way, and access necessary for the ENGINEER's services or PROJECT construction. D. Timely Review The CITY will examine the ENGINEER's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and financial advisors, and other consultants as the CITY deems appropriate; and render in writing decisions required by the CITY in a timely manner in accordance with the project schedule in Attachment A. E. Prompt Notice The CITY will give prompt written notice to the ENGINEER whenever CITY observes or becomes aware of any development that affects the scope or timing of the ENGINEER's services or of any defect in the work of the ENGINEER or construction contractors. F. Asbestos or Hazardous Substances Release. (1) CITY acknowledges ENGINEER will perform part of the work at CITY's facilities that may contain hazardous materials, including asbestos containing materials, or conditions, and that ENGINEER had no prior role in the generation, treatment, storage, or disposition of such materials. In consideration of the associated risks that may give rise to claims by third parties or employees of City, City hereby releases ENGINEER from any damage or liability related to the presence of such materials. (2) The release required above shall not apply in the event the discharge, release or escape of hazardous substances, contaminants, or asbestos is a result of ENGINEER's negligence or if ENGINEER brings such hazardous substance, contaminant or asbestos onto the project. G. Contractor Indemnification and Claims The CITY agrees to include in all construction contracts the provisions of Article IV.E. regarding the ENGINEER's Personnel at Construction Site, and provisions providing contractor indemnification of the CITY and the ENGINEER for contractor's negligence. H. Contractor Claims and Third -Party Beneficiaries (1) The CITY agrees to include the following clause in all contracts with construction contractors and equipment or materials suppliers: "Contractors, subcontractors and equipment and materials suppliers on the PROJECT, or their sureties, shall maintain no direct action against the ENGINEER, its officers, employees, and subcontractors, for any claim arising out of, in connection with, or resulting from the engineering services performed. Only the CITY will be the beneficiary of any undertaking by the ENGINEER." (2) This AGREEMENT gives no rights or benefits to anyone other than the CITY and the ENGINEER and there are no third -party beneficiaries. (3) The CITY will include in each agreement it enters into with any other entity or person regarding the PROJECT a provision that such entity or person shall have no third -party beneficiary rights under this Agreement. (4) Nothing contained in this section V.H. shall be construed as a waiver of any right the CITY has to bring a claim against ENGINEER. I. CITY's Insurance (1) The CITY may maintain property insurance on certain pre-existing structures associated with the PROJECT. (2) The CITY will ensure that Builders Risk/Installation insurance is maintained at the replacement cost value of the PROJECT. The CITY may provide ENGINEER a copy of the policy or documentation of such on a certificate of insurance. (3) The CITY will specify that the Builders Risk/installation insurance shall be comprehensive in coverage appropriate to the PROJECT risks. J. Litigation Assistance The Scope of Services does not include costs of the ENGINEER for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by the CITY. In the event CITY requests such services of the ENGINEER, this AGREEMENT shall be amended or a separate agreement will be negotiated between the parties. K. Changes The CITY may make or approve changes within the general Scope of Services in this AGREEMENT. If such changes affect the ENGINEER's cost of or time required for performance of the services, an equitable adjustment will be made through an amendment to this AGREEMENT with appropriate CITY approval. Article VI General Legal Provisions Amendments to Article VI, if any, are included in Attachment C. A. Authorization to Proceed ENGINEER shall be authorized to proceed with this AGREEMENT upon receipt of a written Notice to Proceed from the CITY. B. Reuse of Project Documents All designs, drawings, specifications, documents, and other work products of the ENGINEER, whether in hard copy or in electronic form, are instruments of service for this PROJECT, whether the PROJECT is completed or not. Reuse, change, or alteration by the CITY or by others acting through or on behalf of the CITY of any such instruments of service without the written permission of the ENGINEER will be at the CITY's sole risk. The final designs, drawings, specifications and documents shall be owned by the CITY. C. Force Majeure The ENGINEER is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of the ENGINEER. D. Termination (1) This AGREEMENT may be terminated only by the City for convenience on 30 days' written notice. This AGREEMENT may be terminated by either the CITY or the ENGINEER for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance with 5 days of written notice and diligently complete the correction thereafter. (2) If this AGREEMENT is terminated for the convenience of the City, the ENGINEER will be paid for termination expenses as follows: a.) Cost of reproduction of partial or complete studies, plans, specifications or other forms of ENGINEER'S work product; b.) Out-of-pocket expenses for purchasing storage containers, microfilm, electronic data files, and other data storage supplies or services; c.) The time requirements for the ENGINEER'S personnel to document the work underway at the time the CITY'S termination for convenience so that the work effort is suitable for long time storage. (3) Prior to proceeding with termination services, the ENGINEER will submit to the CITY an itemized statement of all termination expenses. The CITY'S approval will be obtained in writing prior to proceeding with termination services. E. Suspension, Delay, or Interruption to Work The CITY may suspend, delay, or interrupt the services of the ENGINEER for the convenience of the CITY. In the event of such suspension, delay, or interruption, an equitable adjustment in the PROJECT's schedule, commitment and cost of the ENGINEER's personnel and subcontractors, and ENGINEER's compensation will be made. F. Indemnification (1) The ENGINEER agrees to indemnify and defend the CITY from any loss, cost, or expense claimed by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of the ENGINEER, its employees, officers, and subcontractors in connection with the PROJECT. (2) If the negligence or willful misconduct of both the ENGINEER and the CITY (or a person identified above for whom each is liable) is a cause of such damage or injury, the loss, cost, or expense shall be shared between the ENGINEER and the CITY in proportion to their relative degrees of negligence or willful misconduct as determined pursuant to T.C.P. & R. Code, section 33.011(4) (Vernon Supplement 1996). G. Assignment Neither party shall assign all or any part of this AGREEMENT without the prior written consent of the other party. H. Interpretation Limitations on liability and indemnities in this AGREEMENT are business understandings between the parties and shall apply to all the different theories of recovery, including breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action, except for willful misconduct or gross negligence for limitations of liability and sole negligence for indemnification. Parties mean the CITY and the ENGINEER, and their officers, employees, agents, and subcontractors. I. Jurisdiction The law of the State of Texas shall govern the validity of this AGREEMENT, its interpretation and performance, and any other claims related to it. The venue for any litigation related to this AGREEMENT shall be Tarrant County, Texas. J. Alternate Dispute Resolution (1) All claims, disputes, and other matters in question between the CITY and ENGINEER arising out of, or in connection with this Agreement or the PROJECT, or any breach of any obligation or duty of CITY or ENGINEER hereunder, will be submitted to mediation. If mediation is unsuccessful, the claim, dispute or other matter in question shall be submitted to arbitration if both parties acting reasonably agree that the amount of the dispute is likely to be less than $50,000, exclusive of attorney's fees, costs and expenses. Arbitration shall be in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association or other applicable rules of the Association then in effect. Any award rendered by the arbitrators less than $50,000, exclusive of attorney's fees, costs and expenses, will be final, judgment may be entered thereon in any court having jurisdiction, and will not be subject to appeal or modification except to the extent permitted by Sections 10 and 11 of the Federal Arbitration Act (9 U.S.C. Sections 10 and 11). (2) Any award greater than $50,000, exclusive of attorney's fees, costs and expenses, may be litigated by either party on a de novo basis. The award shall become final ninety (90) days from the date same is issued. If litigation is filed by either party within said ninety (90) day period, the award shall become null and void and shall not be used by either party for any purpose in the litigation. K. Severability and Survival If any of the provisions contained in this AGREEMENT are held for any reason to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this AGREEMENT shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. Articles V.F., VI.B., VI.D., VI.H., VI.I., and VI.J. shall survive termination of this AGREEMENT for any cause. L. Observe and Comply ENGINEER shall at all times observe and comply with all federal and State laws and regulations and with all City ordinances and regulations which in any way affect this AGREEMENT and the work hereunder, and shall observe and comply with all orders, laws ordinances and regulations which may exist or may be enacted later by governing bodies having jurisdiction or authority for such enactment. No plea of misunderstanding or ignorance thereof shall be considered. ENGINEER agrees to defend, indemnify and hold harmless CITY and all of its officers, agents and employees from and against all claims or liability arising out of the violation of any such order, law, ordinance, or regulation, whether it be by itself or its employees. Article VII Attachments, Schedules, and Signatures This AGREEMENT, including its attachments and schedules, constitutes the entire AGREEMENT, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following attachments and schedules are hereby made a part of this AGREEMENT: Attachment A - Scope of Services Attachment B - Compensation Executed this the day of , 20 (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) ATTEST: NattlL martyHe ndrix City Secretary APPROVED AS TO FORM AND LEGALITY Contract AuthorizatioR —J-L- I I- �4 Date ATTEST: -F" I?tQvxp CITY OF FORT WORTH By: Marc A. Oft Assistant City Manager APPROVAL RECOMMENDED S.4W Frank Crumb, P.E. Director, Water Department -#Vp- 6noweerial I.4-lza ENGINEER UYIP �11� r- Ti 75 L I - Attachment A - Scope of Professional Services for DEVELOPMENT OF WATER AND WASTEWATER UTILITIES GROWTH MANAGEMENT AND EXTENSION POLICIES FOR THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF FORT WORTH, TEXAS 1.0 INTRODUCTION Not unlike many other large cities in Texas and the United States, the City of Fort Worth is facing increasing challenges in providing municipal utility services for both its own rapid growth, and potentially, the adjoining suburban areas. Some of these challenges include: Defining and facilitating the City's near- and long-term growth and annexation goals with good urban planning, utility planning, and ultimate fiscal impact in mind. Assuring the provision and extension of quality municipal utility services, where appropriate, Addressing issues where the City's near -term and future growth is abutting up to and overlapping other certificated utility jurisdictions, Assessing the implications of the decertification of some certificated areas to allow other utility suppliers to provide service, Evaluating and properly managing the growing use of the Municipal Utility District (MUD) funding vehicle used as a means of funding/subsidizing private utility development, Assuring that City costs for managing this growth are properly recovered, and Protecting the environment in the surrounding suburban area that affects the City. These issues are not conceptual, but current and pressing. The issues can affect the future size and look of the City, its quality of life, its financial health, its environmental amenities, and the affordability of quality utility services. The City of Fort Worth has asked HDR Engineering, Inc. to assist the City in better defining these issues, assessing the near- and longer -term effects of this growth on Fort Worth, and developing appropriate assessment tools and policies to strategically manage the provision and extension of water and wastewater utility service in its extraterritorial jurisdiction (ETJ) or beyond. For the City's review and consideration, HDR has defined the following efforts to assist Fort Worth in that regard. 2.0 SCOPE OF SERVICES 2.1 Task 1 — Facilitate Initial Staff Workshop to Identify and Evaluate Existing/Known Planned Conditions, Regulatory Setting, and Study Issues HDR will facilitate an initial staff workshop to identify and evaluate known and planned development conditions, the legal and regulatory setting, and key issues facing the City which need to be addressed in this effort. It is expected that this workshop will take about %2 day and that the City's Utilities staff will coordinate attendance of other Utilities and other Department staff as desired. As requested by City staff and in order to keep this consulting budget to a targeted level, HDR has only budgeted for facilitating and documenting the meeting. It is also assumed that City staff will conduct any background research needed and bring to the workshop the needed maps and materials to support this discussion. Issues to be examined in this initial workshop will include: • Discussing current city policies and plans, • Reviewing existing funding, financing and cost -sharing tools and policies, • Identifying neighboring government jurisdictions and service areas, • Discussing service capabilities of other neighboring utilities, • Outlining recent and anticipated development patterns and known/planned projects, • Discussing how MUDs and CCNs affect cities and why they are an issue, • Overviewing legal and regulatory issues, and • Reviewing others cities' experiences, The intent of this work session is to "do the homework" on the background setting that define existing law and policy, municipal and utility jurisdictions, existing funding tools, current development patterns, and understanding how these ETJ issues can affect the City's future growth and development. The outcome of this workshop will be a greater understanding by City and HDR staff of the growth and utility extension issues facing Fort Worth. HDR will document these proceedings. 2.2 Task 2 — Facilitate 2"d Staff Workshop to Identify/Evaluate Future Growth Patterns, City Planning and Policy Goals, and Implications for Utility Master Planning and Provision of Services This second workshop will build on the results of the first one. The intent of this effort is to "start with the end in mind" and vision what the City wants to "look like" in 30 years. This second workshop will discuss: What policies or actions can facilitate that vision happening? Where does the City want to grow and not want to grow? Will the future City and ETJ limits overlap other utility service areas? Under what conditions are utilities extended beyond the City limits? Are there partnering opportunities or other interim service opportunities? What are the factors that govern the City's annexation decisions? And many more issues. Desired outcomes of this discussion include: • Projecting most likely near- and long-term development patterns and City boundaries, • Identifying City goals as they relate to growth and utility expansion, • Reconciling this vision with the Comprehensive and Utility Master Plans, • Understanding legal and regulatory constraints and opportunities, and • Defining a planning and regulatory platform for ETJ policy -making. HDR will document these proceedings. 2.3 Task 3 — Identify and Assess Policy Alternatives With the input from these two workshops, HDR will then identify various policy alternatives as they relate to utility service extensions, avoiding or conditioning MUD creations, facilitating CCN amendments, making fiscally prudent annexation decisions, and funding mechanisms needed to manage and provide for growth. Each of the policy alternatives will be evaluated by relevant criteria, such as: ✓ Promotion of City policy goals, ✓ Legal defensibility, ✓ Fairness and equity, ✓ Effectiveness, ✓ Assurance of quality development and utilities, ✓ Fiscal effects on the City, ✓ Affordability to tax- and rate -payers and homebuyers, ✓ Promotion of economic development, and ✓ Environmental protection. The deliverable from this effort will be a series technical memoranda and policy matrices that examine the pros and cons of various policy approaches and issues. This will provide a platform for subsequent workshops to build consensus on desired approaches and make recommendations to City management and the City Council. 2.4 Task 4 — Build Consensus, Make Recommendations and Support City Decision -making With the background information and policy alternatives research previously conducted, HDR will then facilitate one or more subsequent workshops with internal or external stakeholders to: • discuss and evaluate the pros and cons of policy alternatives related to utility extensions, MUDs, CCNs, utility funding, and possible administrative fees and charges; • build consensus on favored approaches; • develop recommendations to be forwarded to City decision -makers; and • provide technical support to the City Council in its deliberations on these policies. Given that the extent of these activities is somewhat unknown at this time, HDR has budgeted for only one staff workshop to review the policy alternatives, but can perform more on an as -requested, additional per diem basis. 2.5 Task 5 — Develop Evaluation and Implementation Tools To support the implementation of these policies, HDR will also: - identify application submittal requirements for utility extensions, MUD consent, and CCN decertification, as well as recommendations as to how these should be processed; - recommended appropriate processes for Departmental and City decision - making, including initial policy development and review, implementation responsibilities, and resources required; - develop draft ordinances or model agreements relating to utility extensions, MUD consent policy, CCN partnering, and fees and charges associated with processing requests for service; and - develop a Fiscal Impact Model that will allow for the input of typical new development information, City expense and revenue parameters, and other various planning and financial assumptions and provide the City with an indication of when annexation would be financially advantageous. The deliverables from this task will include technical memoranda as to recommended submittal requirements, draft ordinances or model agreements, and a spreadsheet - based fiscal impact model. HDR can provide on -going implementation support on an as -requested, additional per diem basis. 3.0 SCHEDULE HDR proposes to complete various defined tasks of this scope of services within a four month period from receipt of Notice to Proceed. Additional, unscoped stakeholder coordination or other requested activities may extend this completion date. As our scope does not contain efforts for background research in Tasks 1 and 2 and we do not have direct control over the timing of staff workshops, HDR's schedule is dependent upon the timely provision of information, product review, and workshop scheduling by City staff. It is understood that some efforts, such as defining information submittal requirements for out -of -city service requests, may be advanced in the HDR schedule to address near - term needs of the City. FIGURE 3.1 ANTICIPATED SCHEDULE Activitv Task 1- Facilitate Initial Workshop Prepare for and Facilitate Staff Workshop Reporting Task 2 - Facilitate Second Workshop Prepare for and Facilitate Staff Workshop Reporting Task 3 - klentity and Assess Policy Alternatives Develop Policy Alternatives Analyses Reporting Task 4 - Build Consensus, Make Recommendations, Support DeclelonMaking Prepare for and Facilitate tntemal/Extemal Workshops Reporting Task 5 - Develop Evaluation & Implementation Toole Develop Fiscal Impact Model Identify Processes for Depart./City Decision -making Develop Model Agreements & Ordinances Develop Admin. Fees and Charges On -going Supper Staff Workshops Month f Month 2 .,k, Mcmth 3 L Month 4 !"u �� " I® X X JAl, r Month 5 77, s s Ill I11110144, I' 6f15 r 4 4.0 PROJECT TEAM The proposed project team is shown in Figure 2. Mr. Tony Bagwell will service as the HDR project manager. Mr. Bagwell is a Senior Economist and Vice President with HDR and has over 30 years experience in utility planning, regulation and finance. Mr. Rick Brooks is an HDR Vice President and will service as the HDR project principal. Ms. Susan Morgan, CPA will provide the quality control review. Mr. Bagwell will be assisted in the policy/regulatory aspects of this effort by Ms. Gwen Webb of Webb and Webb, PC (subcontractor). Mr. Terry Foyt, P.E. of HDR will assist on planning and utility issues. The entire project team has lengthy experience in a wide array of utility issues with special expertise in ETJ, utility extension, and special district/CCN areas. Figure 2 Proposed Project Team and Roles Contract Manaoer Paul Bounds (City of Fort Worth) Proiect Manaoer Tony Bagwell (HDR) . . ... ..... .............. . . . ..... Proiect Princieal QA/QC Rick Brooks - Susan Morgan (HDR) (HDR) Planni ' FjnancFa) �tg�needng 'terry 1�ol�cv Mato lebb Reg�rtns lC srd�na Tony.gagwellV`I; y µ�, Foyle, PE » GWen TonJyByagwell (HuR).� ' I IIII I i� (HDR):.. I IIIIII � III y �fl111Y'� � �. I I .11'irtl 'h I I II I � II - Attachment B - Engineer's Compensation As detailed below, HDR proposes a lump sum study budget of $105,000. Billing will be made monthly based on a percent complete basis. PROPOSED BUDGET CITY OF FORT WORTH WATER UTILITIES - DEVELOPMENT OF UTILITY -RELATED ETJ POLICIES Task 2 - Facilitate Second Workshop Prepare for and Facilitate Staff Workshop Coordi tion and Reoortino Task Subtotal Task 3 - Identify and Assess Policy Alternatives Develop Policy Alternatives Analyses ordination and Reporting ask Subtotal Task 4. Build Consensus, Make i3aaannterldatioM, Support )3eUslon-IWaklnp Prepare for and Facilitate Staff Workshop Coordination and Reporting Prepaje for and Facilitate InternallExtemal Workshops Task tut i Task 5 - Develop Evaluation & Implementation Tools Identify Processes for Depart./City Decision -making Develop Fiscal Impact Model Develop Model Agreements & Ordinances Develop Admin. Fees and Charges On'. nq Support Task Subtotal 12 a 20 $ 3,720 a 2 6 16 $ 2,207 20 10 - 6 36 5,927 60 16 16 92 $ 16,591 24 6 6 8 44 $ 6,932 84 22 22 8 136 23,523 12 8 20 3,720 8 2 6 16 2,207 provided on 8 oer diem basis as requested 20 10 6 36 5,927 12 8 4 24 $ 3,931 36 8 56 100 $ 16,145 36 10 4 50 $ 8A97 6 20 26 $ 3,043 provided on per diem basis as requested 90 26 76 8 200 32,916 Total Labor Hours 234 78 98 34 444 Total Labor Expense $ 44,975 , - 13,783 $ 13,671 $ 1,792 $ 74,220 B. NONAASOR EXPENSES Unit Trial Kam , t latNkv Price cost. AkfaM jAustiril") a kips $ 220 per trip $ 1.320 Car Rental 10 days $ 55 per day $ 550 Lodging 4 days $ 85 per day $ 340 Per Diem 12 person -days $ 40 per day $ 400 Technology Charge 444 hours $ 4.10 per hour $ 1,820 Communications (telephone, FAX, mail) 1 'm $- 150 I.S. -- $ 150 Rim 15t1i ea.• � 5 Ls. $ -�T'6�0 %tall�on4:eborExparwles ; C. SUBCONTRACTOR EXPEN3 , and Webb, PC) $ D. TOTAL BUDGET; Page 1 of L City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/17/2006 - Ordinance No. 17239-10-2006 DATE: Tuesday, October 17, 2006 LOG NAME: 60HDR REFERENCE NO.: **C-21780 SUBJECT: Authorize the Execution of an Engineering Agreement with HDR Engineering for the Development of Water and Wastewater Utilities Growth Management and Extension Policies for the Extraterritorial Jurisdiction of the City of Fort Worth and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Fund by $106,000 from available funds; and 2. Authorize the City Manager to execute a contract with HDR Engineering in the amount of $106,000 to assist the Water Department in assessing the near and long term effects of providing water and wastewater service to special utility districts and in developing appropriate assessment tools and policies to strategically manage the provision and extension of water and wastewater utility service in its (Extraterritorial Jurisdiction) ETJ. DISCUSSION: The City of Fort Worth is facing increasing challenges in providing municipal utility services for its rapidly growing areas and the adjoining suburban areas. The City of Fort Worth Water Department asked HDR Engineering, Inc., to assist in reviewing current policies and procedures and develop appropriate management tools to effectively manage the extension of water and wastewater services into our ETJ. HDR Engineering has extensive experience in this field and has recently completed similar studies in the Austin, Texas area. The study will take place over a four -month period and will: Evaluate and manage the Municipal Utility District (MUD) funding vehicle as a means of funding/subsidizing private utility development; Assure that City costs for management of water and wastewater services in the ETJ are properly recovered; Address issues where the City's near -term and future growth is abutting and/or overlapping other certificated utility jurisdictions; Assess the implications of the de -certification of some certificated areas to allow other utility suppliers to provide service; Assure the provision and extension of quality municipal utility services, where appropriate; and Protect the environment in the surrounding suburban area that affects the City. HDR Engineering, Inc., is in compliance with the City's M/WBE Ordinance by committing to 25 percent M/WBE participation on this project. The City's goal on this amendment is 25 percent. http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/9/2006 Page 2 of 2 FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Water and Sewer fund. TO Fund/Account/Centers FROM Fund/Account/Centers PE45 493012 0601000 $53,000.00 PE45 539120 0602502 $53,000.00 PE45 493022 0701000 $53,000.00 PE45 539120 0702502 $53,000.00 PE45 539120 0602502 $53,000.00 PE45 539120 0702502 $53,000.00 http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/9/2006