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HomeMy WebLinkAboutContract 35743 CITY SECRETARY�52� CONTRACT NO. STATE OF TEXAS ) KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT ) THIS AGREEMENT is made and executed by and between the City of Fort Worth, Texas, a municipal corporation situated in Tarrant County, Texas, hereinafter called the "City,,, acting herein by and through Marc Ott, its duly authorized Assistant City Manager, and Malcolm Pirnie, Inc., hereinafter called the "Consultant." WITNESSETH: WHEREAS, the City wishes to engage the Consultant to perform a wholesale wastewater cost of service and rate study and provide a rates modeling tool; and WHEREAS, the Consultant is willing to perform such wastewater cost of service and rate study provide a rates modeling tool for the City; and WHEREAS, the City desires to engage the Consultant to render certain services in connection therewith and the Consultant is willing to provide such services; NOW, THEREFORE, that for and in consideration of the mutual covenants and agreements herein contained, the parties hereto do hereby covenant and agree as follows: SECTION 1. Services of the Consultant: The City hereby contracts with the Consultant as an independent consultant, and the Consultant hereby agrees to perform the professional services set out herein in accordance with standard utility rate-setting practices and policies. SECTION 2. Scope of Services: The Consultant shall conduct a wholesale wastewater cost of service rate study and develop wholesale wastewater rates for fiscal year beginning October 1, 2007 in accordance with Attachment A. The Consultant shall not be responsible for additional services except by written amendment to this agreement signed by both parties hereto. SECTION 3. Time of Performance: Services of the Consultant shall commence upon execution of this Agreement. Consultant shall complete and deliver, the final report on or before August 31, 2007, and shall complete all other services on or before September 30, 2007, unless an extension of time is granted by the City in writing. The City recognizes that portions of the Consultant' s work and the completion thereof are predicated upon timely performance and completion of certain activities required to be performed by the City. Accordingly, delays in Consultant's performance and completion that occur due to circumstances and events beyond the reasonable control of the Consultant will give rise to the need for an extension of time for the completion of Consultant s work. Consent for extension of time for performance as a result of the foregoing shall not be unreasonably withheld or delayed. SECTION 4. Compensation to the Consultant and Method of Payment: As compensation for the services requi�ed to complete this Project in accordance with the terms of this Agreement, the City agrees to pay the Consultant on the basis of the hourly rates set forth in this section an amount not to exceed $230,876. This amount shall constitute full and complete compensation for the Consultant' s services under this Agreement, including all expenditures made and expenses incurred by the Consultant in performing such services, and which amount is hereinafter referred to as the "Basic Fee." The Basic Fee shall be paid to the Consultant in monthly installments upon submission of statements, together with supporting data indicating the progress of the work and services performed for the month immediately preceding. Invoices will be due upon receipt and payable within 30 days, subject to certification by the Director of the Water Department, or his authorized representative, that such work has been performed and the expenses have been incurred. Compensation for the services rendered by the Consultant as set forth in Attachment A, entitled "Basic Services," shall be paid at the following rates: Project Director $285 Project QA/QC $250 Project Manager $230 Senior Financial Consultants $185 Senior IT Consultant $185 Senior Technical Advisor $250 Technical Advisor $230 Support Staff $ 89 These rates are effective for all work completed prior to October 1, 2007. After such time, these rates are subject to change based on written agreement by both parties. Reimbursable expenses are part of the Basic Fee and include, but are not necessarily limited to subcontractor expenses, travel, report production and other out-of-pocket expenses, which shall be paid based upon actual cost, supported by such documentation as the City may reasonably request. The undersigned representatives of the City hereby warrant and represent that the legislative authority of the City has complied with all necessary rules and regulations and statutory provisions in connection with the authorization of this Agreement and the amount to be paid hereunder and that the funds necessary to meet its contractual obligations under this agreement have been appropriated for this purpose. SECTION 5. Establishment and Maintenance of Records: Records shall be maintained by the Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of three (3) years after receipt of final payment under this Agreement. SECTION 6. Audits and Inspections: The Consultant agrees that the City shall, until the 2 expiration of three,(3) years after the final payment under this Agreement have access to and the right to examine any directly pertinent books, documents, papers and records of the Consultant involving transactions relating to this Agreement. The Consultant agrees that the City shall have access during normal working hours to all necessary Consultant 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 Consultant reasonable advance notice of intended audits. The Consultant further agrees to include in all its subcontracts hereunder a provisions to the effect that the subcontractor agrees that the City shall, until the expiration of three (3) years after the final payment and directly pertinent books, documents, papers and records of such subcontractor, involving transactions to the subcontract, and further, that City shall have access during normal working hours to all subcontractor facilities, and shall be provided adequate and appropriate work space, in order to conduct audits in compliance with the provisions of this article, and shall give subcontractor reasonable advance notice of intended audits. SECTION 7. Indemnity: The Consultant agrees to defend, indemnify and hold harmless the City and its officials, agents and employees from and against any and all third party claims, actions, suits or proceedings of any kind brought against said parties to the extent caused by the negligent act, error, or omission of the Consultant or anyone for whom it is legally liable in the performance of services hereunder. The Consultant is not required hereunder to defend, indemnify and hold harmless the City of Fort Worth and its officials, agents and employees from liability resulting from the negligence or wrongful acts of the City or any third party. The indemnity required hereunder shall not be limited by reason of the specification of any particular insurance coverage in this Agreement. The Consultant shall have the right to defend against any and all such claims, actions, suits or proceedings with counsel of its own choosing and shall have the right to settle and or compromise such matter as the Consultant deems appropriate. The City shall provide Consultant with written notice of such claims within 10 business days after receipt of same by the City. SECTION 8. Limitations: To the fullest extent permitted by law, Consultant shall not be liable to City for any special, indirect, or consequential damages resulting in any way from the performance of the services. SECTION 9. Compliance with Laws: In providing the scope of services outlined herein, the Consultant shall comply with all applicable laws, ordinances, and codes of the Federal, State and local governments. SECTION 10. Non-Discrimination: The Consultant agrees that its employees and applicants for employment and those of any labor organization, subconsultants, or employment agency in either furnishing or referring employee applicants to the undersigned are not discriminated against as prohibited by all applicable law. i _ SECTION 11. M/WBE Goals: The Consultant acknowledges its commitment and agrees to meet the City of Fort Worth's goals for Minority and Women Business Enterprise (NMBE) participation in City contracts. SECTION 12. Changes: The City may, from time to time, request changes in the Scope of Services of the Consultant to be performed hereunder. Such changes, including any increase or decrease in the arnount of the Consultant's compensation, which are mutually agreed upon by and between the City and the Consultant shall be incorporated in written amendments to this Agreement. SECTION 13. Personnel: A. The Consultant represents that it has, or will secure at its own expense, all personnel required in performing all of the services required under this Agreement. Such personnel shall not be employees of or have any contractual relationships with the City. B. All the services required hereunder will be performed by the Consultant or under its supervision and all personnel engaged in the work shall be qualified and shall be authorized or permitted under state and local law to perform such services. C. The Consultant represents that the Consultant's Project Director, Mr. Richard D. Giardina, is available for the direction of the Basic Services indicated in Attachment A. SECTION 14. Assignability:_ Neither party hereto shall assign, sublet or transfer its interest herein without prior written consent of the other party, and any attempted assignment, sublease or transfer of all or any part hereof without such prior written consent shall be void. SECTION 15. Termination for Cause. If through any cause the Consultant shall fail to materially fulfill in a timely and proper manner its obligations under this Agreement or if the Consultant shall materially violate any of the covenants, agreements or stipulations of this Agreement, the City shall thereupon have the right to terminate this Agreement by giving written notice to the Consultant of such termination and specifying the effective date thereof, with such effective date not to occur earlier than seven days after the notice date, unless more time is granted by the City. The Consultant shall have seven calendar days to cure such alleged defaults. Unless such alleged defaults are cured and accepted by the City within this seven-day period, the Consultant shall immediately cease all work. In such event, all finished or unfinished documents, data, maps, studies, surveys, drawings, models, photographs and reports prepared by the Consultant under this Agreement shall, at the option of the City, become its property, and the Consultant shall be entitled to receive compensation in accordance with the terms of this contract for all work completed in accordance with the terms of this contract up to the date of termination. Performance shall be defined in accordance with the terms of this contract and all attachments. Compensation is to include fees and expenses incurred by the Consultant as defined in Section 4 of this Agreement. Nothing herein shall constitute a waiver 4 of any right, at law and at equity, which the City may have if the Consultant is in default, including the right to bring legal actions for damages or force the specific performance of this contract. SECTION 16. Termination of Convenience of City: The City may terminate this Agreement for its convenience at any time by giving at least fifteen (15) days' notice in writing to the Consultant. In the event of termination pursuant to this paragraph, Consultant shall be entitled to receive payment for all work completed or in progress, and for costs reasonably incurred to close out its project services. Compensation is to include fees, expenses, and liabilities to subconsultants or other third parties. Consultant will make reasonable attempts to cancel all such liabilities in order to mitigate the cost to the City. If this Agreement is terminated due to the fault of the Consultant, Section 14 hereof relative to termination shall apply. SECTION 17. Insurance: The Consultant shall maintain at its own expense (1)comprehensive general liability insurance, (2) professional liability insurance for errors and omissions, and (3) worker's compensation insurance, which insurance shall provide coverage for liabilities or claims for damages resulting solely from services performed or undertaken by the Consultant hereunder. Certificates of Insurance shall be furnished to the City upon the request of the City. SECTION 18. Severability: If any portion of this agreement is held to be void, invalid, or otherwise unenforceable, in whole or part, the remaining portions of this agreement shall remain in effect. SECTION 19. Venue: Should any action, whether real or asserted, at law or in equity, arise out of the terms of this contract, venue for said action shall be in Tarrant County,Texas. SECTION 20. Agreement Amendment: This instrument represents the entire understanding between the City and the Consultant in respect to the Project, supersedes any and all prior written or oral negotiations of agreements between the parties, and may only be modified in writing signed by both parties. SECTION 21. Notices: All written notices to the respective parties shall be sent by registered mail and be addressed as follows: CITY OF FORT WORTH CONSULTANT Mr. Marc Ott Mr. Richard D. Giardina Assistant City Manager Vice President City of Fort Worth Malcolm Pirnie, Inc. 1000 Throckmorton 100 Fillmore Street, Suite 200 Fort Worth,Texas 76102 Denver, Colorado 80206 SECTION 22. Captions: The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms and conditions of the Agreement. SECTION 23. Conflicts: This Agreement is the sole agreement between the City and the Consultant and any and all other prior agreements, whether oral or written, are merged into this Agreement and of no further force or effect. 5 EXECUTION OF AGREEMENT IN TESTIMONY HEREOF, the City of Fort Worth, Texas, has caused this instrument to be signed in its nam and on its behalf by its Assistant City Manager, and attested by its City Secretary, with th Corporate Seal affixed; and the Consultant has also properly executed this instrument in triplicate copies each of which is deemed an original. 7 c m P' Inc.. t�' k-l", Mr. Richard D. Giardina Vice President Date Attest: City of Fort W ex : ry\k'-(z I By: Marty Hen x Marc t City Secretary Assistant City Manager W Date APP VAL RECO ,� NDED: S. Frank Crumb,P.E.,Director Fort Worth Water Department APPROVED AS TO FORM AND LEGALITY: Christa R. pez Assistant City Attorney Contract Authorization Lt Q 1 za Date ATTACHMENT A Scope of Work CITY OF FORT WORTH RED OAK CONSULTING WHOLESALE WASTEWATER RATE STUDY PLAN 10 J U N E 7-2 0,07 R q CITY OF FORT WORTH, TEXAS FORT WORTH WATER DEPARTMENT WHOLESALE WASTEWATER COST OF SERVICE AND RATE STUDY 1. Provide a new Microsoft Excel-based rates modeling tool based on generally accepted principles for water and wastewater rate studies for both wholesale and retail rates and multiple year capital improvement plans with the fallowing attributes: A. Ability to handle various services to include at least water, wastewater and reclaimed wastewater with the ability to expand to other services as needed B. Ability to pull information from existing and future software applications. C. Ability to perform "what if' scenarios for changes in capital program, operations &maintenance expenses, etc. D. Providing a single point of data entry for each data item that would then flow as appropriate to various places within the model as needed. E. Ability to specify various financing options for each capital proj ect. F. Ability to handle multiple debt financing sources. G. Providing an efficient and clear graphical dashboard to allow interactive parameter changes to debt, rate increases, reserves, operations and maintenance, and capital improvements such that one could compare various scenarios based on these changes. H. Providing ease of use so that anyone with a basic knowledge of the rate study process and the use of Microsoft Excel could intuitively utilize the model without significant amounts of training. I. Provide for at least a 10 year planning horizon J. Provide appropriate printable output for the rate study presentations to both the Retail Rate Advisory Committee and the Wholesale Advisory Committee and Subcommittee. 2. Provide training to Fort Worth Water Department staff in the use and functionality of the Rates Modeling tool so that they could use it independently. 3. Conduct a wholesale wastewater cost of service and rate study in accordance with established methodology. A. Establish cost of service (revenue requirement) (1) Operating &maintenance expense (2) Depreciation expense (3) Return on investment (4) Street Rental CITY OF FORT WORTH RED OAK CONSULTING WHOLESALE WASTEWATER RATE STUDY PLAN 11 JUNE 7,2007 B. Allocate cost of service (1) Allocate cost of service to wastewater service functions (2) Allocate functionalized costs to cost components C. Design wastewater rates — following rate structure established by contract D. Provide recommendations for changes in methodology, if needed Normalization of volumes Record keeping (i.e. fixed asset tracking, contributions, etc.) Engineering assumptions E. Conduct periodic status meetings with Wholesale Advisory Subcommittee and Fort Worth staff. CITY OF FORT WORTH RED OAK CONSULTING WHOLESALE WASTEWATER RATE STUDY PLAN 12 JUNE 7,2007 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/22/2007 - Ordinance No. 17557-05-2007 DATE: Tuesday, May 22, 2007 LOG NAME: 60WW STUDY 07 REFERENCE NO.: **C-22131 SUBJECT: Authorize Execution of a Contract with Malcolm Pirnie Inc., to Conduct a Wholesale Wastewater Cost of Service and Rate Study and to Provide a Rates Modeling Tool and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached supplemental appropriation ordinance increasing appropriations in the Water and Sewer Fund, Wastewater Department, in the amount of $69,016.50 and in the Water and Sewer Fund, Water Department, in the amount of $66,859.50 from available funds and decreasing the unreserved retained earnings by the same amount; and 2. Authorize the City Manager to execute a contract with Malcolm Pirnie Inc., in the amount not to exceed $230,876 for the purpose of preparing a cost of service study for wholesale wastewater rates and providing a rates modeling tool for both wholesale and retail water and wastewater rates. DISCUSSION: The uniform wholesale wastewater contracts presently in effect between Fort Worth and its wholesale customers require annual rate revisions with an extensive cost of service study to be performed by a consultant every three years. By contract, the wholesale customers provide Fort Worth with the names of qualified firms, and Fort Worth selects a firm. Through an evaluation process, which included involvement of representatives from the wholesale customers, it was recommended that Malcolm Pirnie Inc., be retained to perform the cost of service study for the FY2007-08 wholesale wastewater rates and to provide a rates modeling tool for both wholesale and retail water and wastewater rate studies. The firm has significant background in rate development and is capable of meeting time schedules established in the wholesale contracts. Currently staff uses four Microsoft Excel-based models and multiple supporting spreadsheets to analyze and develop wholesale and retail rates for water and wastewater services. The proposal requested that the selected firm develop a new modeling tool that consolidates the four models into one. Key elements desired of the new tool include the ability to pull data from multiple sources into the models electronically, the ability to provide "what if' scenarios, ease of use, a clear graphic interface to compare different scenarios, and the ability to handle a 10-year planning horizon. The model developed by Malcolm Pirnie and in use at other cities meets these requirements. The cost of the wastewater cost of service study is $97,157.00 of which $95,000.00 is budgeted in the Wastewater Department Non-Departmental Division. The cost of the modeling tool is $133,719.00 and is not budgeted. Since the tool will be used for calculating both water and wastewater rates, the cost is http://www.cfwnet.org/council_packet/Reports/mc print.asn Q/11/)nn7 Page 2 of 2 divided between the Water and Wastewater Departments Malcolm Pirnie Corporation is in compliance with the City's M/WBE Ordinance by committing to 15 percent MIWBE participation. The City's goal on this project is 15 percent. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendation and adoption of the attached supplemental appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Water and Sewer Fund. Upon approval, the cash balance in the Water and Sewer Fund will be $49,388,393.00. TO Fund/AccounVCenters FROM Fund/AccounVCenters PE45 539120 0609010 $66, 559.50 PE45 539120 0609010 $66,859.50 PE45 539120 0709010 $69,016.50 PE45 539120 0709010 $164,016.50 Submitted for City Manager's Office bX. Marc Ott (8476) Originating Department Head: S. Frank Crumb (8207) Additional Information Contact: Melissa Ramon (8245) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 8/23/2007