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HomeMy WebLinkAboutContract 40582STATE OF TEXAS § COUNTIES OF TARRANT § DENTON AND WISE § THIS AGREEMENT is made and executed by and between the City of Fort Worth, Texas, a municipal corporation situated in Tarrant, Denton and Wise Counties, Texas, hereinafter called the "City", acting herein by and through Fernando Costa, its duly authorized Assistant City Manager, and Red Oak Consulting, a Division of Malcolm Pirnie, Inc., hereinafter called the "Consultant," acting herein by and through RAO.0.t /n1 liVT`f Urits duly authorized V 1 c6 PRE51gw, WHEREAS, the City desires to conduct a wholesale wastewater cost of service and rate study; and WHEREAS, the City desires to hire a professional firm knowledgeable and experienced in conducting such a wholesale wastewater cost of service and rate study; and WHEREAS, the Consultant has represented that it is knowledgeable and experienced in conducting such a wholesale wastewater cost of service and rate study. 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. DEFINITIONS In this Contract, the following words and phrases shall be defined as follows: City's Representative means the Director of the Water Department or his designee. Contract Documents means the Consultant's Response to the City's Request for Proposal for Wholesale Cost of Service and Rate Study dated January 29, 2010 and all its addenda, attached as exhibit "A", this Contract and all other attachments. Deliverable Document means a report, photograph, electronic file, or an invoice that shows the completion of one of the work tasks and/or subtasks. Electronic files shall be in Word, Excel, AutoCad, or similar software and shall be provided as requested by the City. Notice to Proceed means the letter issued by the City that authorizes Consultant to begin work. It also authorizes future invoices to be paid. RFP means- the .City_'$ Request for January 29, 2010 ands all addenda. CITY SECRETARY FT. WORTH, TX Proposal for Wholesale Cost of Service and Rate Study dated 07-20-1 0 AU; : "I 7 I Pd Subcontract means a contract between the Consultant for this project and another person or company for any complete task defined in the scope of work. A purchase order is also considered a subcontract. 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 and rate study and develop wholesale wastewater rates for fiscal year beginning October 1, 2010 in accordance with Consultant's Response to the RFP as described in exhibit A. SECTION 3. TIME OF PERFORMANCE Services of the Consultant shall commence upon execution of this Agreement. Unless otherwise directed by the City and agreed to by the Consultant, the timing of interim deliverables shall follow the schedule as set forth by the City, as follows: • May 20, 2010 Preliminary Cost of Service and Rates Overview • June 10, 2010 1st Draft Cost of Service and Rates Report • July 15, 2010 Final Draft Cost of Service and Rates Report • August 31, 2010 Final Cost of Service and Rates Report Consultant shall complete and deliver the final draft report on or before July 15, 2010, the fmal report on or before August 31, 2010, and shall complete all other services on or before September 30, 2010, unless an extension of time is granted by the City in writing, as approved by City Council, SECTION 4. COMPENSATION TO THE CONSULTANT AND METHOD OF PAYMENT As compensation for the services required 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 notAo-exceed $74,725.00. 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. Wholesale Wastewater Cost of Service and Rate Study CRR7110 2 Such compensation 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 thirty (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. Such certification shall not be unreasonably withheld or delayed. Reimbursable expenses are part of the Not -to -Exceed amount and include, but are not necessarily limited to subcontractors 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. SECTION 5. PROFESSIONAL RESPONSIBILITY AND WARRANTY Consultant shall perform services consistent with skill and care ordinarily exercised by other professional consultants under similar circumstances at the time services are performed, subject to any limitations established by City as to degree of care, time or expense to be incurred or other limitations of this Agreement. Consultant warrants that it understands the currently known hazards and suspected hazards which are presented to persons, property and the environment by petroleum storage tanks testing and repair. Consultant further warrants that it will perform all services under this Agreement in a safe, efficient and lawful manner using industry accepted practices, and in full compliance with all applicable state and federal laws governing its activities and is under no restraint or order which would prohibit performance of services under this Agreement. SECTION 6. ESTABLISHMENT AND MAINTENANCE OF RECORDS Records shall be maintained by the Consultant at its place of business with respect to all matters cOWN; d by this Agreement. Such records shall be maintained fora period of three (3) years after receipt of final payment under this Agreement. SECTION 7. AUDITS AND INSPECTIONS The Consultant agrees that the City shall, until the 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 Wholesale Wastewater Cost of Service and Rate Study CRR7110 �3 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 8. 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. 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. Consultant certifies that on the day work is to commence under this Agreement and during the duration of the Agreement, it shall have and maintain current valid and appropriate federal and state licenses and permits necessary for the provision of services under this Agreement. Consultant also certifies that if it uses any subcontractor in the performance of this Agreement, that such subcontractor shall have and maintain current valid and appropriate federal and state licenses and permits necessary for the provision of services under this Agreement. SECTION 10. NON-DISCRIMINATION During the performance of this Contract, Consultant agrees not to discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin, except where religion, sex or national origin is a bona fide occupational qualification reasonably Wholesale Wastewater Cost of Service and Rate Study CRR7110 rd necessary to the normal operation of the Consultant. Consultant agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of the non-discrimination clause. Consultant also agrees that in all solicitations or advertisements for employees placed by or on behalf of this Contract, that Consultant is an equal opportunity employer. Notices, advertisements, and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this section. SECTION 11. M/WBE GOALS In keeping with the City's Minority/Women Business Enterprise (MWBE) ordinance, Consultant agrees a minimum of fifteen percent (15%) of the total dollar value of this Contract will be paid as compensation to certified MWBE firms. Monthly reporting is required to the City of Fort Worth — MWBE Office, 1000 Throckmorton Street, Fort Worth, Texas 76102. Proof of payment for all invoices from MWBE firms will be required. Final payment to the Consultant under this Contract may be withheld pending MWBE Office approval of documentation. SECTION 12. MODIFICATION No modification of this Agreement shall be binding on Consultant or the City unless set out in writing and signed by both parties. Modifications shall be in the same format as the final specification showing the change or addition of a task, project schedule, deliverable document(s), and schedule of payments. SECTION 13. PERSONNEL 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. 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. The Consultant represents that the Consultant's Project Director, , is available to ensure completion of the scope of services pursuant to this Agreement. Wholesale Wastewater Cost of Service and Rate Study CRR7110 5 SECTION 14. ASSIGNABILITY Neither parry hereto shall assign, sublet or transfer its interest herein out prior written consent of the other parry, and any attempted assignment, sublease or transfer of all or any part hereof without such prior written consent shall be void. SECTION 15. DEFAULT Consultant shall not be deemed to be in default because of any failure to perform under this Agreement, if the failure arises from causes beyond the control and without the fault or negligence of Consultant. Such causes shall include acts of God, acts of the public enemy, acts of Government, in either its sovereign or contractual capacity, fires, flood, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather. If Consultant fails to begin work herein provided for within the time specified above, or to complete such work within the time specified above, within the true meaning of this Agreement, City shall have the right to take charge of and complete the work in such a manner as it may deem appropriate. If City exceeds the costs detailed in the attached documents, City may deliver to Consultant a written itemized statement of the total excess costs, and Consultant shall reimburse City for such excess costs without delay. If, at any time during the term of this Contract, the work of Consultant fails to meet the specifications of the Contract Documents, City may notify Consultant of the deficiency in writing. Failure of Consultant to correct such deficiency and complete the work required under this Agreement to the satisfaction of City within ten (10) days after written notification shall constitute default, and shall result in termination of this Agreement. All costs and attorneys fees incurred by City in the enforcement of any provision of this Agreement shall be paid by Consultant. The remedies provided for herein are in addition to any other remedies available to City elsewhere in this Agreement and bylaw. SECTION 16. TERMINATION OF CONVENIENCE OF CITY The City may terminate this Agreement for its convenience at any time by giving at least ten (10) 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 subcontractors 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 15 hereof relative to termination shall apply. Wholesale Wastewater Cost of Service and Rate Study CRR7110 SECTION 17. INSURANCE Consultant $hall maintain at its own expense the following insurance: 1. Commercial General Liability (CGL) $ 1,000,000 each occurrence $2,000,000 aggregate limit 2. Workers' Compensation Statutory limits Employer's liability $100,000 each accident/occurrence $100,000 Disease - each employee $500,000 Disease - policy limit 3. Automobile Liability 4. $1,000,000 each accident on a combined single limit basis Split limits are acceptable if limits are at least: $250,000 Bodily Injury per person / $500,000 Bodily Injury per accident / $100,000 Property Damage 5. Errors &Omissions (Professional Liability) $1,OOO,OOOper claim and aggregate The certificate of insurance shall document the City of Fort Worth, its' Officers, Employees and Volunteers as an "Additional Insured" on all liability policies. The additional insured requirement does not apply to Workers' Compensation policies The certificate of insurance shall provide thirty days (30) notice of cancellation or non -renewal. Example: "This insurance shall not be canceled, limited in scope or coverage, cancelled or non -renewed, until after thirty (30) days prior written notice has been given to the City of Fort Worth. The certificate shall be signed by a agent authorized to bond coverage on behalf of the insured, be complete in its entirety, and show complete insurance carrier names as listed in the current A.M. Best Property & Casualty Guide All policies shall include a Waiver of Subrogation (Rights of Recovery) in favor of the City of Fort Worth. Wholesale Wastewater Cost of Service and Rate Study CRR7110 The insurers for all policies must be licensed and/or approved to do business in the State of Texas. Except for workers' compensation, all insurers must 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. If the rating is below that required, written approval of Risk Management is required. If insurance policies are not written for specified coverage limits, an Umbrella or Excess Liability insurance for any differences is required. Excess Liability shall follow form of the primary coverage. "Unless otherwise stated, all required insurance shall be written on the "occurrence basis". If coverage is underwritten on a claims -made basis, the retroactive date shall be coincident with or prior to the date of the contractual agreement and the certificate of insurance shall state that the coverage is claims -made and the retroactive date. The insurance coverage shall be maintained for the duration of the contractual agreement and for five (5) years following completion of the service provided under the contractual agreement or for the warranty period, whichever is longer. An annual certificate of insurance submitted to the City shall evidence such insurance coverage. Policies shall have no exclusions by endorsements, which nullify the required lines of coverage, nor decrease the limits of said coverages unless such endorsements are approved in writing by the City. In the event a contract has been bid or executed and the exclusions are determined to be unacceptable or the City desires additional insurance coverage, and the City desires the Concultant/engineer to obtain such coverage, the contract price shall be adjusted by the cost of the premium for such additional coverage plus 10%. Certificates of Insurance shall be furnished to the City upon the request of the City. SECTION 18. SEVERABILITY If any portion of this Contract is held to be void, invalid, or otherwise unenforceable, in whole or part, the remaining portions of this Contract 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. This Contract and all attachments 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 Wholesale Wastewater Cost of Service and Rate Study CRR7110 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 Mr. Fernando Costa Assistant City Manager City of Fort Worth 1000 Throckmorton Fort Worth, Texas 76102 CONSULTANT � `�7 (IV �J %. �J � i i l SECTION 22. CAPTIONS '2 S 0 The captions of this Contract are for informational purposes only and shall not in any way affect the substantive terms and conditions of the Contract. SECTION 23. CONFLICTS This Contract 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 Contract and of no further force or effect. Wholesale Wastewater Cost of Service and Rate Study CRR7110 0 EXECUTED on this, the lS� day of , 2010. Red Oak Consulting, a Division of Malcolm Pirme, Inc.. VW -1l BY 1< C.6A(Lk0 G, . ve t Lie ITS Q,� e azsL'c( �� Date OFFIC6Q� RECOF�F SECRETARY CITY FT �1lO�TH¢ T� SECRETAR City of Fort Worth, Texas: Fernando Costa �%Assist t C'ty Manager 90 Date Approv Recommended 1 Frank Crumb, P.E., Director Fort Worth Water Department APPROVED AS TO FORM AND LEGALITY: r( Christa R�3Reynolds Assistant City Attorney ATTEST: Marty Hendrix City Secretary Contract Authorization 5111 1 in Date OAS �000p�, Wholesale Wastewater Cost of Service and Rate Study CRR711 � I� Page 1 of 2 Cety of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/11/2010 DATE: Tuesday, May 11, 2010 LOG NAME: 60RED OAK COS STUDY 2011 REFERENCE NO.: **C-24216 SUBJECT: Authorize the Execution of a Contract in an Amount Not to Exceed $74,725.00 with Red Oak Consulting, a Division of Malcom Pirnie, Inc., to Conduct a Wholesale Wastewater Cost of Service and Rate Study for Fiscal Year 2011 RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a contract with Red Oak Consulting, a division of Malcom Pirnie Inc., in an amount not to exceed $74,725.00 to conduct a Wholesale Wastewater Cost of Service and Rate Study for Fiscal Year 2011. DISCUSSION: The Wholesale Wastewater Contract presently in effect between the City of Fort Worth and its wholesale customers requires a Cost of Service and Rate Study (Study) be performed each year to set rates and fees for the next fiscal year. The Contract also requires an external consultant perform the Study every three years. A Request for Proposals was issued on January 29, 2010, for firms interested in performing the Study with responses due on February 26, 2010. Six firms responded including Black and Veatch, J. Stowe and Company, Raftelis Financial Consultants, Stepwise Utility Advisors, R.W. Beck and Red Oak Consulting, a division of Malcom Pirnie, Inc. On March 12, 2010, a committee consisting of members of the Wholesale Customer Advisory Committee and the Water Department met and reviewed the responses. Using a matrix the committee evaluated the firms based on experience with the Fort Worth Water Department, similar rate study experience, qualifications and direct experience of consultants performing the work and overall cost. The committee recommended Red Oak Consulting be selected based on the firm's experience with the Fort Worth Water Department, the direct experience of staff performing similar studies and the lowest cost of $74,725.00. Principal elements of the study will include the following components: . Review current cost allocations and recommend changes if warranted; . Review and analyze test year data to establish revenue requirements; . Allocate costs of service between wholesale and retail customers; . Design wastewater rates; and . Prepare Final Cost of Service and Rate Report. Red Oak Consulting is in compliance with the City's M/WBE Ordinance by committing to 15 percent M/WBE participation. The City's goal on this project is 15 percent. The cost of the wastewater cost of service study is $74,725.00 and is budgeted in the Water Department, Non -Departmental Division. http://apps.cfwnet.org/ecouncil/printmc.asp?id=13347&print=true&DocType=Print 7/20/2010 Page 2 of 2 FISCAL INFORMATION / CERTIFICATION1 The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Water and Sewer Operating Fund, FUND CENTERS: TO Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office b� Originating Department Head: Additional Information Contact: FROM Fund/Account/Centers PE45 539120 0709000 $74.725.00 Fernando Costa (6122) S. Frank Crumb (8207) Melissa Ramon (8245) ATTACHMENTS 1. 60RED OAK COS STUDY 2011 MWBE.pdf (CFW Internal) 2. Fund Availabilit r�pdf (CFW Internal) http://apes.cfwnet.org/ecouncil/printmc.asp?id=13347&print=true&DocType=Print 7/20/2010