HomeMy WebLinkAbout48-03 RESOLUTION•
•
RESOLUTION NO. 48-03
A RESOLUTION TO APPROVE CONTRACT AMENDMENT #3
WITH BLACK AND VEATCH, INC. TO INCREASE FUNDING
IN THE AMOUNT OF $37,000.00, PLUS A CONTINGENCY OF
$5,000.00 FOR ADDITIONAL MEETINGS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves Contract Amendment #3 with Black and Veatch, Inc. attached
as Exhibit A and authorizes the expenditure of an additional $37,000.00 plus a
contingency of $5,000.00 pursuant to that Contract Amendment.
PASSED and APPROVED this the 15th day of April, 2003.
ic,t(Ert
• ei,
By: 40...4.44_, cao-Ar--
Sondra Smith, City Clerk
APPROVED:
By
DAN COODY, May
•
ADDENDUM NO. 3
To
CONTINUING SERVICES AGREEMENT
Between
City of Fayetteville and Black & Veatch Corporation
In accordance with the Agreement effective March 14, 2001 between City of Fayetteville,
Arkansas (Client) and Black & Veatch Corporation (Consultant), Consultant agreed to
perform consulting services as requested by Client. Client has requested Consultant to
provide the following additional services in conjunction with preparation of the Report on
Operations of the Water & Sewer System and the Report on Revenue Requirements, Cost
of Service, and Rates for Water & Sewer Service conducted under Addendum No. 2 to
the Continuing Services Agreement:
(3)
Expansion of the benchmarking study.
Revision of the cost of service study to recognize increases in costs of purchased
water.
Attendance of 4 meetings with customers outside the City; 2 meetings with City
Council, City Chamber, and Water and Sewer Committee; and 2 meetings with
Arkansas Soil and Water Conservation Commission.
To cover the cost of these additional services, Black & Veatch is requesting additional
authorization in the amount of $37,000. If the services can be completed for less than
this amount, the City will be invoiced only lig costs actually incurred. Additional
meetings or analyses requested as a result of the meetings set out in Item 3 above are not
included in the $37,000 fee, but will be performed upon authorization by the City with
associated costs invoiced at our standard hourly billing rates.
City of Faye•i ille, Arkansa • (CLIENT)
By:
Date:
Black & Veatch Corporation (CONSULTANT)
By:
2,11d-LAY-usi
Date: 311-11121_._
ADDENDUM NO. 3
To
CONTINUING SERVICES AGREEMENT
Between
City of Fayetteville and Black & Veatch Corporation
In accordance with the Agreement effective March 14, 2001 between City of Fayetteville,
Arkansas (Client) and Black & Veatch Corporation (Consultant), Consultant agreed to
perform consulting services as requested by Client. Client has requested Consultant to
provide the following additional services in conjunction with preparation of the Report on
Operations of the Water & Sewer System and the Report on Revenue Requirements, Cost
of Service, and Rates for Water & Sewer Service conducted under Addendum No. 2 to
the Continuing Services Agreement
(1) Expansion of the benchmarking study.
(2) Revision of the cost of service study to recognize increases in costs of purchased
water.
(3) Attendance of 4 meetings with customers outside the City; 2 meetings with City
Council, City Chamber, and Water and Sewer Committee; and 2 meetings with
Arkansas Soil and Water Conservation Commission.
To cover the cost of these additional services, Black 8c Veatch is requesting additional
authorization in the amount of $37,000. If the services can be completed for less than
this amount, the City will be invoiced only for costs actually incurred. Additional
meetings or analyses requested as a result of the meetings set out in Item 3 above are not
included in the $37,000 fee, but will be performed upon authorization by the City with
associated costs invoiced at our standard hourly billing rates.
City of Fay%fviIIe, Arkansas (CLIENT) Black & Veatch Corporation (CONSULTANT)
By:
Date:
By:
Date:
312.71 los
NAME OF FILE:
CROSS REFERENCE:
Date
Resolution No. 48-03
Document
1
04/01/03
Res. 48-03 w/Ex. A
2
03/28/03
Staff Review Form w/attachments
memo to Council
3
Li 111
le
memo to Steve Davis
NOTES:
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FAYETTEALLE
THE CITY OF FAYETTEVILLE. AAAAA SAS
DEPARTMENTAL CORRESPONDENCE
To: Steve Davis
Finance & Internal Services
From: Clarice Buffalohead-Pearman
City Clerk Division
Date: April 17, 2003
Re: Res. No. 48-03
Attached is a executed copy of the above resolution approved by the City Council on April 15,
2003, authorizing Addendum No. 3 to the Continuing Services Agreement with Black & Veatch,
Inc. increasing funding in the amount of $37,000.00 with a contingency amount of $5,000.00. .
I am retuming to you one original and the other original will be filed with the resolution in the city
clerk's office. If anything else is needed please let the clerk's office know.
/cbp
attachments
cc. Nancy Smith, Internal Auditor
XX AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
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STAFF REVIEW FORM
For the Fayetteville City Council Meeting of:
•
April 15, 2003
gt5
/7512,06
ata 3
4fritni mod ALS/
8/4ne ;1/toldli Int
FROM:
Stephen Davis Finance & Internal Services Dir.
Name Division
Finance & Internal Services
Department
ACTION REQUIRED: A resolution approving Contract Amendment Number 3 with Black & Veatch for continuing
services associated with the 2002/2003 Water & Sewer Rate Study. Approval of a contingency in the amount of
$5,000 is also requested.
COST TO CITY!
$42,000.00
Cost of this request
5400-1810-5314-00
Account Number
02064
$
63,043.00 Water & Sewer Rate Study
13,043.00
Funds Used to Date
Program Category / Project Name
Program / Project Category Name
50,000.00 Water & Sewer
Project Number Remaining Balance
Fund Name
BUDGET REVIEW:
Budget Ma ager
)( Budgeted Item
3- ),/ -u3
Date
Budget Adjustment Attached
CONTRACT/GRANT/LEASE REVIEW:
47,2,4 shot_ ya.A.a.dw) 3)31/03
Accounting Manager Date Internal Auditor Date
-PULAR
City Att rney Da e Purchasing Manager
3)31103
Date
STAPP RECOMMENDATION: Staff recommends approval of this contract amendment.
Division Head
Department Director
Fin n e
4/pd._Sr
& Internal Services Dir
Cross Reference
New Item. Yee No
Date Previous Ord/Res8:
Orig. Contract Date
Orig. Contract Number
Date
- 03
Date
ir1/.71(3
Ch e ministr
Mayor
KASteve DavisMater &
Date
/p,
Date
Water & Sewer Rate Study_amendment 3 Staff_Review
Description
Comments:
Budget Manager
0 Staff Review Form - Page 20
Meeting Date
Reference Comments:
Accounting Manager
City Attorney
Purchasing Manager
ADA Coordinator
Internal Auditor
Grants Coordinator
K:\Steve DavisMater & Sewer\Water & Sewer Rate Study_amendment 3 Staff_Reyiew
FAYETTEtILLE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Fayetteville City Council
Dan Coody, Mayor
Hugh Earnest, Chief Administrative Officer
AUStephen Davis, Finance & Internal Services Director :---
March 27, 2003
Black & Veatch Contract Amendment Number Three
Background
Black & Veatch has been actively involved in conducting an operations review of the City's water &
sewer utility in compliance with the appropriate bond document provisions. The operations report,
as required by the bond indenture agreements, was completed and distributed during the 4th quarter
2002. The City Council Water & Sewer Committee was presented the results of the operations
study. The Committee provided guidance to Black & Veatch for the development of the water &
sewer rates. Thc rate design incorporates the projected increased cost of operations that will be a
result of the Wastewater System Improvements Project (WSIP). This overall rate increase of 29% is
consistcnt with the amount reported to the voters in the November 2001 sales tax election. The
suggested water rate design incorporates the Beaver Water District 15% wholesale water rate
increase, being factored into a 10% retail rate increase for our customers.
Current Status
Black 8c Veatch has completed thc draft rate study and Staff has submitted the draft report to the
Arkansas Soil & Water Conservation Commission (ASWCC) for review and comment. The
ASWCC reviews the draft rate study to verify compliance with the federal guidelines attached to the
$100 million of revolving loan proceeds that will partially fund the City's Wastewater System
Improvement Project.
After Staff receives the ASWCC's approval the final report will be presented to the City Council
Water & Sewer Committee for review and comment and then on to the City Council for adoption
and approval of rate amendmcnts. It should be noted that the City's water & sewer rates were last
adjusted in 1997 and the proposals contained in the draft report are designed to provide predicted
revenue needs for current operations and capital for the next five years.
The City provides water and sewer services to a number of outside city customers under either a
wholesale services contract or as individual retail customers. Some of these agreements call for the
City to present any rate adjustment proposal to these affected customers in a timely manner. The City
KASteve Davis \Water & Sewer \Black & Veatch Addenddum Number 3 Rate Study Agenda Mcmo.doc
may expect that participation in meetings with the ASWCC will be needed to review the
Commissions comments prior to their acceptance of the rate report.
Due to anticipated numerous meetings, with outside City customers and ASWCC, Staff is proposing
a contract amendment with Black & Veatch for Black & Veatch to provide support for the rate
methodology and to explain the impact. It is predicted that up to eight meetings will be needed to
properly present the rate study and resolve concerns pertaining to the methodology.
Recommendation
Staff recommends that City Council approve a contract amendment with Black & Veatch for
S37,000 and approve a contingency of $5,000 to provide contract authorization and funds for any
additional meetings (above eight) or other costs that may be necessary to complete this portion of the
work.
K\STEVE DAVISMATER & SEWER \BLACK & VEATCH ADDENDDUM NUMBER 3 RATE STUDY AGENDA
MEMO.DOC