HomeMy WebLinkAbout06-04 RESOLUTIONRESOLUTION NO. 06-04
A RESOLUTION APPROVING CONTRACT AMENDMENT #4 IN
THE AMOUNT OF S30,000.00 WITH BLACK & VEA"CCH
CORPORATION TO PERFORM CONTINUING WATER AND
SEWER OPERATIONS AND RATE STUDY SERVICES; AND
APPROVING A BUDGET ADJUSTMENT IN TI IE AMOUNT OF
525,000.00 FOR SAME.
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 #4 in the amount of 530,000.00 with Black
& Veatch Corporation to perform continuing water and sewer operations and
rate study sera ices.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a budget adjustment in the amount of $25,000.0( for same.
PASSED and APPROVED this 6th day of January, 2004.
pYE r
i.f Ec ' a APPROVED:
By: 4. -i
SONDRA SMITH, City Clerk
By
• •
ADDENDUM NO. 4
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:
(I) Preparation of presentation and attendance by two Black & Veatch
representatives at City Council meeting December 2, 2003.
(2) Preparation and submittal of information to Arkansas Soil and Water
Conservation Commission verifying that User Charge Requirements are met
under the rate structure adopted by the City.
(3) Consultation, as requested, on water and/or sewer rates, for discussions between
Fayetteville, outside City customer groups, Arkansas Soil and Water
Conservation Commission, bond counsel, bond underwriters, bond trustee's, and
other parties as may be required.
To cover the cost of these additional services, Black & Veatch is requesting additional
authorization in the amount of $30,000. If the services can be completed for less than
this amount, the City will be invoiced only for costs actually incurred.
City of Fa etteville, Arkansas (Client) 13lack & Veatch Corporation (Consultant)
Date: / Date: January 5, 2004
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City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2004
Department: FISD/Water & Wastewater
Division: Billing & Collections / Meter Ops
Program: Meter Capital Expenditures
Date Requested
1/6/2004
Adjustment Number
Project or Item Requested:
$25,000 is requested in the Water & Sewer
Rate/Operations Study capital project.
Project or Item Deleted:
None. $25,000 from the Use of Fund Balance account.
Justification of this Increase:
The funding is needed to cover amendment #4 with
Black & Veatch.
Justification of this Decrease -
Due to several capital projects not moving forward from
2003 to 2004, there is sufficient funding available in the
Water & Sewer Fund.
Increase Budget (Decrease Revenue)
Account Name Account Number Amount Project Number
Professional services
5400 1840 5314 00 25,000 02064
Decrease Budget (Increase Revenue)
Account Name Account Number Amount Project Number
Use of fund balance
5400 0940 4999 99 25,000
Approval Signatures
Requested By
7Budget Manager
Department Director
Date
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Dale
Date
12-7‘103Internal crvices Director
Mayor
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Budget Office Use Only
Type: A B C E
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
Initial Date
Initial Date
Initial Date
Initial Date
•
Approvals: nu" alike tee et)
Mayor: Department Director: Purchasing Manager:
Fin. & Int Services Director: Budget Manager: information Tech. Mgr:
K:\Steve Davis\Water & ewerl0&V_Water & Sewer Rate Study Arnend 4 Pur_Req -EDAM 1
Special Instructions:
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Ship To Code:
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Tax: N/A
TOTAL: $30,000.00
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NAME OF FILE: Resolution No. 06-04
wlAddendum No. 4, budget adjustment & purchase
requisition
CROSS REFERENCE:
Item #
Date
Document
1
12.10.03
memo to mayor & city council
draft resolution
Itr from Black & Veatch
staff review form
Itr from Black & Veatch
staff review
form
NOTES:
FAYETTE'dILLE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
•
Les
/W09
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Bleu ; ✓oi. asuAd. -A.9
City Council Agenda January 6, 2004
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
or
ugh EameShief Administrative Officer
Stephen Davis, Finance & Internal Services Directo5/1&
December 10, 2003
Black & Veatch Contract Amendment Number Four
Recommendation
Staff recommends City Council approval of a $30,000 contract amendment with Black & Veatch,
such work to be funded using the existing $5,000 contingency and a S25,000 budget adjustment.
This contract amendment funds the out -of -scope services to date and provides a budget for
continuing technical support until the city requests qualifications statements for the next operations
evaluation and rate study in 2005.
Current Status
City Council approved contract amendment #3 with Black & Veatch on April 15, 2003 in the
amount of S37,000 with a project contingency of $5,000 to provide funding to: expand the
benchmarking study, adjust the water & sewer rate study to reflect the impact of the Beaver
Water District rate increase and provide funding for four meetings with customers outside the
• City; two meetings with City Council, Chamber of Commerce, and Water and Sewer Committee
and two meetings with the Arkansas Soil and Water Conservation Commission (ASWCC).
Black & Veatch has participated in a total of ten (10) meetings. Additionally, Black & Veatch
developed five (5) alternative rates structures that were presented to City Council and/or the
various customer groups. Finally, Black & Veatch reviewed the % across-the-board and fixed -
unit -cost across-the-board rate options to ensure compliance with federal guidelines associated
with the low interest cost loan from ASWCC. These activities represent out -of -scope services
that have been absorbed within the existing contract amendment and contingency.
Now that the new rates have been approved by City Council there remain several very important
issues that require expertise in this rate study. The cities of Fayetteville and Farmington are
continuing the discussion of the sewer services provided to Farmington; the cities of Fayetteville and
Greenland will likely enter into similar discussions after the Farmington issues have been resolved
and the cities of Fayetteville and Elkins may enter into further discussions of the wholesale sewer
rate charged to Elkins. Finally, the adopted rates have to be re -submitted to ASWCC for
confirmation that the new rates comply with applicable Federal regulations. This change order is
•
• •
predicted to provide sufficient contract authority to fund the additional cost incurred by the City for
these additional meetings, rate calculations and additional review by ASWCC.
The additional $30,000 is proposed to be used by the City as continuing services until the next
operations and rate study work begins in 2005.
Discussion
As the discussions continue with the outside city customers and regulatory agencies, expertise in this
rate report will be critical for a better understanding of the rate structure, the compliance with
applicable state and federal requirements and the impact of any rate alternatives.
Budget Impact
This contract amendment utilizes $5,000 of previously approved contingcncy and an additional
$25,000 in water & sewer reserves.
K:'STEVE DAVIS\WATER & SEWER\BLACK & VEATCH ADDENDDUM NUMBER 4A RATE STUDY AGENDA MEMO.IX)C
• •
RESOLUTION NO.
A RESOLUTION APPROVING CONTRACT AMENDMENT #4 IN
THE AMOUNT OF $30,000.00 WITH BLACK & VEATCH
CORPORATION TO PERFORM CONTINUING WATER AND
SEWER OPERATIONS AND RATE STUDY SERVICES; AND
APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF
525,000.00 FOR SAME.
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 #4 in the amount of $30,000.00 with Black
& Veatch Corporation to perform continuing water and sewer operations and
rate study services.
Section 2. That the City Council of the City of Fayetteville,...At anq
hereby approves a budget adjustment in the amount of $25,000 00Eforr me.
PASSED and APPROVED this 6thday of January, 2004; I'4
AT"CEST
/'APPROVED:' :--J
. AN COiODY, Mayor
%/
By:1 1 1 1
S.00 NDRA S'atITH;'City Cler
a
BLACK & VEATCH
11401 Lamar Avenue Black & Veatch Corporation
Overland Park. Kansas 66211 USA
Tel W13)458-2033
Mr. Stephen Davis
Finance and Internal Services Director
City of Fayetteville
113 West Mountain
Fayetteville, Arkansas 72701
Dear Mr. Davis:
December 11, 2003
RECEIVED
DEC 12 2003
CITY OF FAYETTE V ILLE
MAYOR'S OFFICE
Enclosed are two copies of Addendum No. 4 related to additional services in conjunction
with the Report on Revenue Requirements, Cost of Service, and Rates for Water & Sewer
Service. Please return one fully executed copy to me for our files.
Items (1) through (7) of the Addendum have been completed. Approximately 90 hours of
effort have been expended to complete these seven items. It is anticipated that completion of
Item (8) will require approximately 4 hours of effort. An allowance of 80-90 hours of effort,
plus travel expenses, is included in Item (9). Neither the number of meetings nor the extent
of analyses associated with negotiation of contract provisions and rates with outside City
customers is known at this time.
Please contact me if you have any questions regarding this Addendum.
Very truly yours,
BLACK & VEATCH CORPORATION
B W B/mdd
Enclosures
atte-
Blaine W. Bickel
building • world of diaerence"
XX AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
• STAFF REVIEW FORM •
For the Fayetteville City Council Meeting of: January 6, 2004
•
FROM:
Stephen Davis
Name
Finance & Internal Services Dir.
Division
Finance & Internal Services
Department
ACTION REQUIRED: Approval of Amendment #4 with Black & Veatch for continuing services associated with
the 2002/2003 Water & Sewer Rate Study. Approval of a budget adjustment in the amount of $25,000 is also
requested. City Council previously approved a contingency in the amount of $5,000.
COST TO CITY:
$30,000.00 $ 63,043.00 Water & Sewer Rate Study
Cost of this request Program Category / Project Name
5400-1840-5314-00
Account Number
$ 58,043.00
Funds Used to Date Program / Project Category Name
02064 $ 5,000.00 Water & Sewer
Project Number
Remaining Balance Fund Name
BUDGET REVIEW: k _ Budgeted Item
12 -/P49
Budget Manager Date
Budget Adjustment Attached
CONTRACT/GRANT/LEASE REVIEW:
A
ting Manager
/21n11 c? l c c. t /rta 3
Date Internal Ai itor Date
e7P21C4-1 1) Lo
City At rney Da e Purchasing Manager
Date
STAFF RECOMMENDATION: Staff recommends approval of this contract amendment and budget adjustment.
Division Head
Cross Reference
Date
New Item: Yes No
Departmgnt Director Date Previous Ord/Res$:
o Orig. Contract Date
Finance Internal Services Dir. ate
„Lasittsir Ar
C ief ministrative Officer Date
if es Zs
Mayor Date
K:\Steve Davis\W ater :of er\Water & Sewer Rate Study_amendment 4 Staff_Review
Orig. Contract Number 416
•
•
BLACK & VEATCH
11401 Lamar Avenue
Overland Park. Kansas 66211 USA
Tel (913) 4532000
Mr. Stephen Davis
Finance and Internal Services Director
City of Fayetteville
113 West Mountain
Fayetteville, Arkansas 72701
Dear Mr. Davis:
RECEIVED
JAN082004
CITY OF FAYETTEVILLE
MAYOR'S OFFICE
Black & Veatch Corporation
January 5, 2004
Enclosed are two copies of Addendum No. 4 related to additional services in conjunction
with the Report on Revenue Requirements, Cost of Service, and Rates for Water & Sewer
Service Please return one fully executed copy to me for our files.
Item (1) has been completed, with effort amounting to 30 hours plus travel expenses. It is
anticipated that completion of Item (2) will require approximately 4 hours of effort.
Neither the number of meetings nor the extent of analyses associated with item (3) is
known at this time.
Please contact me if you have any questions regarding this Addendum.
Very truly yours,
BLACK & VEATCH CORPORATION
B W B/mdd
Enclosures
Blaine W. Bickel
building • world el dillerence"
• •
FAYET t'EVI LLE
THE CITY OF EAYETTIVIILI. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Steve Davis
Finance & Internal Services
From: Clarice Buffalohead-Pearman
City Clerk Division
Date: January 12, 2004
Re: Resolution No. 06-04
Attached is a copy of the above resolution passed by the City Council January 6, 2003, approving
Amendment No. 4 to Black & Veatch's agreement for water and sewer operations and rate study.
I have attached one of two original Addendums to the agreement, a copy of the budget
adjustment and original check request with the mayor and city clerk's signatures where
appropriate. The ordinance with attachments will be recorded in the city clerk's office and
microfilmed.
If anything else is needed please let the clerk's office know.
/cbp
attachment(s)
cc: Nancy Smith, Internal Auditor