HomeMy WebLinkAbout71-05 RESOLUTION•
RESOLUTION NO. 71-05
A RESOLUTION TO APPROVE AN ENGINEERING SERVICES
CONTRACT WITH HDR/ECONOMIC AND ENGINEERING
SERVICES, INC. IN THE AMOUNT OF $62,379.00 WITH A
CONTINGENCY OF $14,000.00 FOR AUDIT OF THE 2003 RATE
STUDY, EVALUATION OF WATER AND WASTEWATER
BUSINESS RELATIONSHIP WITH MAJOR CUSTOMERS AND
DEVELOPMENT OF NEW CONTRACTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTF,VILLE, ARKANSAS:
Section 1: That the City Council of the City of' Fayetteville, Arkansas hereby
approves an engineering services contract with HDR/Economic and Engineering
Services, Inc. in the amount of $62,379.00 with a contingency of $14,000.00 for audit of
the 2003 rate study, evaluation of water and wastewater business relationship with major
customers and development of new contracts.
PASSED and APPROVED this 5th day of April, 2005.
AlTEST•
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: FAYETTEVILLE • E
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By:
SONDRA SMITH, City Clerk
By
APPROVED:
DAN COODY, Mayor
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AGREEMENT
For
PROFESSIONAL ENGINEERING SERVICES
Between
CITY OF FAYETTEVILLE, ARKANSAS
And
HDR ENGINEERING, INC.
THIS AGREEMENT is made as of' 1�Or i / 5 12005, by and between City of
Fayetteville, Arkansas, acting by and through its Mayor (hereinafter called CITY OF
FAYETTEVILLE) and HDR ENGINEERING, INC. with offices located at 500 108'h Avenue
N.E. Suite 1200, Bellevue, Washington 98004 (hereinafter called HDR).
CITY OF FAYETTEVILLE requires professional engineering services in connection with the
audit of the Water & Wastewater rate study for adherence to the AWWA Rate Model as defined
and described in AWWA Manual MI and other services more fully described in Section 2.
Therefore, CITY OF FAYETTEVILLE and HDR in consideration of their mutual covenants
agree as follows:
HDR shall serve as CITY OF FAYETTEVILLE's professional engineering consultant in those
assignments to which this Agreement applies, and shall give consultation and advice to CITY OF
FAYETTEVILLE during the performance of HDR's services. All services shall be performed
under the direction of a professional engineer registered in the State of Arkansas and qualified in
the particular field.
SECTION 1- AUTIIORIZATION OF SERVICES
1.1 Services on any assignment shall be undertaken only upon written Authorization of
CITY OF FAYETTEVILLE and agreement of HDR
1.2 Changes, modifications or amendments in scope, price or fees to this contract shall
not be allowed without a formal contract amendment approved by the Mayor and the
City Council in advance of the change in scope, costs, fees, or delivery schedule.
SECTION 2 - BASIC SERVICES OF HDR
2.1 Audit 2003 Water & Sewer Rate Study conducted by Black & Veatch for adherence to
AWWA Rate Model.
2.2 Audit City of Elkins water and sewer rates to their retail customers.
2.3 Develop model contracts for service and model franchise agreements that the system can
utilize to govern the business relationships between the various owners of the utility
service area.
2.4 Assistance in and development of a water service territory.
2.5 Develop a report that explores alternative business relationships with Elkins, Greenland,
Farmington and University of Arkansas and Washington Water Authority.
Reports and Meetings
2.24 Communication with the client is essential during all aspects of the study. Consultant will:
• Maintain ongoing dialogue with City representatives concerning progress and
issues through written and telephone communications and periodic meetings.
• Prepare a draft Report of the findings, conclusions, and recommendations
regarding the audit of the 2003 Water & Sewer Study conducted by Black &
Veatch and submit 5 copies of the report for review by City representatives.
• Prepare a draft Report of the alternatives to the existing relationship with Elkins,
Greenland, Farmington and the University of Arkansas and Washington Water
Authority.
• Conduct a public presentation of findings, including a prescntation of how the
AWWA Rate Model works, in terms so any citizen can understand, to
Fayetteville Water & Sewer Committee, Fayetteville City Council, Elkins
City Council, Farmington City Council, Greenland City Council, and
Chamber Industrial Committee
• Attend Fayetteville Water and Sewer Committee meeting and the ensuing City
Council meeting to recommend action by the respective bodies. Prepare and
present a recommendation complete with such supporting information as
necessary for the bodies to make an informed decision on the action
recommended.
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RESPONSIBILITIES OF CITY OF FAYETTEVILLE
CITY OF FAYETTEVILLE shall, within a reasonable time, so as not to delay services of
Consultant:
Provide full information as to CITY OF FAYEFIEVILLE's requirements for the Project.
Assist Consultant by placing at Consultant's disposal all available information pertinent to the
assignment including previous reports and any other data relative thereto.
Provide such professional legal, accounting, financial, and insurance counseling services as may
be required for the Project.
Designate in writing a person to act as CITY OF FAYETTEV ILLE's representative with respect
to the services to be performed under this Agreement.
PERIOD OF SERVICE
This Agreement will become effective upon the first written notice by CITY OF
FAYETTEVILLE authorizing services hereunder.
The provisions of this Agreement have been agreed to in anticipation of the orderly progress of
the Project through completion of the services stated in the Agreement. Consultant will proceed
with providing the authorized services immediately upon receipt of written authorization from
CITY OF FAYETTEVILLE. Said authorization shall include the scope of the services
authorized and the time in which the services are to be completed.
Compensation
For the Scope of Services described herein, CITY OF FAYETTEVILLE shall pay HDR the
lump sum amount of fifty six thousand, three hundred sixty United States Dollars (US
S56,360.00), plus estimated reimbursable expenses of six thousand, nineteen United States
Dollars (US $6,019.00), for a total contract not to exceed sixty thousand, six hundred thirty-six
United States Dollars (US $62,379.00).
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Subject to the City Council approval, adjustment of the lump sum amount may be made should
HDR establish and CITY OF FAYETTEVILLE agree that there has been or is to be a significant
change in scope, complexity or character of the services to be performed; or if CITY OF
FAYETTEVILLE decides to shorten the duration of work from the time period specified in the
Agreement for completion of work and such modification warrants such adjustment. Changes,
modifications or amendments in scope, price or fees to this Contract shall not be allowed without
formal contract amendment approved by the Mayor and the City Council in advance of the
change in scope, cost, fees, or delivery schedule.
The lump sum amount as stated in this Section shall be submitted in six (6) equal portions to
CITY OF FAYETTEVILLE for services consistent with HDR's normal billing schedule.
Reimbursable expenses shall be included applications for payment as accrued. Applications for
payment shall be made in accordance with a format to be developed by HDR and approved by
CITY OF FAYETTEVILLE. Each month an updated project report by task will be submitted to
the CITY OF FAYETTEVILLE as the basis for determining the value carred as the work is
accomplished. Final payment for services shall be made upon CITY OF FAYETTEVILLE's
approval and acceptance with the satisfactory completion of the Project.
Payments
All statements are payable upon receipt and due within thirty (30) days. If a portion of HDR's
statement is disputed by CITY OF FAYETTEVILLE, the undisputed portion shall be paid by
CITY OF FAYETTEVILLE by the due date. CITY OF FAYETTEVILLE shall advise HDR in
writing of the basis for any disputed portion of any statement. CITY OF FAYETTEVILLE will
make reasonable effort to pay invoices within 30 days of date the invoice is approved, however,
payment within 30 days is not guaranteed.
Final Payment
Upon satisfactory completion of the work performed under this Agreement, as a condition before
final payment under this Agreement, or as a termination settlement under this Agreement, HDR
shall execute and deliver to CITY OF FAYETTEVILLE a release of all claims against CITY OF
FAYETTEVILLE arising under or by virtue of this Agreement, except claims which are
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specifically exempted by HDR to be set forth therein. Unless otherwise provided in this
Agreement or by State law or otherwise expressly agreed to by the parties to this Agreement,
final payment under this Agreement or settlement upon termination of this Agreement shall not
constitute a waiver of CITY OF FAYETTEVILLE's claims against HDR or his sureties under
this Agreement or applicable performance and payment bonds, if any.
GENERAL CONSIDERATIONS
Insurance
During the course of performance of thcsc services, HDR will maintain (in United States
Dollars) the following minimum insurance coverages.
Type of Coverage
Workers' Compensation
Employers' Liability
Commercial General Liability
Bodily Injury and
Property Damage
Automobile Liability:
Bodily Injury and
Property Damage
Professional Liability Insurance
Limits of Liability
Statutory
$500,000 Each Accident
$1,000,000 Combined Single Limit
$1,000,000 Combined Single Limit
$1,000,000 Each Claim
HDR will provide to CITY OF FAYETTEVILLE certificates as evidence of the specified
insurance within ten days of the date of this Agreement and upon each renewal of coverage.
Professional Responsibility
HDR will exercise reasonable skill, care, and diligence in the performance of HDR's services
and will carry out its responsibilities in accordance with customarily accepted professional
engineering practices. HDR agrees not to seek or accept any compensation or reimbursements
from the City of Fayetteville for engineering work it performs to correct any errors, omissions or
other deficiencies causcd by HDR 's failure to meet customarily accepted professional
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engineering practices. CITY OF FAYETTEVILLE retains all other remedies to recover for its
damages caused by any negligence of HDR
In addition HDR will be responsible to CITY OF FAYETTEVILLE for damages caused by any
negligent conduct to the extent covered by HDR's Commercial General Liability and
Automobile Liability Insurance policies as specified above.
Changes
CITY OF FAYETTEVILLE shall have the right to make changes within the general scope of
HDR's services, with an appropriate change in compensation and schedule only after
Fayetteville City Council approval of such proposed changes and, upon execution of a mutually
acceptable amendment or change order signed by the Mayor of the CITY OF FAYETTEVILLE
and the President or any Vice President of HDR
Termination
This Agreement may be terminated in whole or in part in writing by either party in the event of
substantial failure by the other party to fulfill its obligations under this Agreement through no
fault of the tenninating party, provided that no termination may be effected unless the other party
is given:
Not less than ten (10) calendar days written notice (delivered by certified mail, ret -um receipt
requested) of intent to terminate,
An opportunity for consultation with the terminating party prior to termination.
This Agreement may be terminated in whole or in part in writing by CITY OF FAYETTEVILLE
for its convenience, provided that HDR is given.
Not less than ten (10) calendar days written notice (delivered by certified mail, return receipt
requested) of intent to terminate,
An opportunity for consultation with the terminating party prior to termination.
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If termination for default is effected by CITY OF FAYETTEVILLE, an equitable adjustment in
the price provided for in this Agreement shall be made, but no amount shall be allowed for
anticipated profit on unperformed services or other work,
Any payment due to HDR at the time of termination may be adjusted to cover any additional
costs to CITY OF FAYETTEVILLE because of HDR's default.
If termination for default is effected by HDR, or if termination for convenience is effected by
CITY OF FAYETTEVILLE, the equitable adjustment shall include a reasonable profit for
services or other work performed. The equitable adjustment for any termination shall provide
for payment to HDR for services rendered and expenses incurred prior to the termination, in
addition to termination settlement costs reasonably incurred by HDR relating to commitments
which had become firm prior to the termination.
Upon receipt of a termination action under Paragraphs above, HDR shall:
Promptly discontinue all affected work (unless the notice directs otherwise),
Deliver or otherwise make available to CITY OF FAYETTEVILLE all data, drawings,
specifications, reports, estimates, summaries and such other information and materials as may
have been accumulated by HDR in performing this Agreement, whether completed or in process.
Upon termination CITY OF FAYETTEVILLE may take over the work and may award another
party an agreement to complete the work under this Agreement.
If, after termination for failure of HDR to fulfill contractual obligations, it is determined that
HDR had not failed to fulfill contractual obligations, the termination shall be deemed to have
been for the convenience of CITY OF FAYETTEVILLE. In such event, adjustments of the
agreement price shall be made as provided above.
Delays
In the event the services of HDR arc suspended or delayed by CITY OF FAYETTEVILLE or by
other events beyond HDR's reasonable control, HDR shall be entitled to additional
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compensation and time for reasonable costs incurred by HDR in temporarily closing down or
delaying the Project.
Rights and Benefits
HDR's services will be performed solely for the benefit of CITY OF FAYETTEVILLE and not
for the benefit of any other persons or entities
Dispute Resolution
Scope of Paragraph: The procedures of this Paragraph shall apply to any and all disputes
between CITY OF FAYETTEVILLE and HDR which arise from, or in any way are related to,
this Agreement, including, but not limited to the interpretation of this Agreement, the
enforcement of its terms, any acts, errors, or omissions of CITY OF FAYETTEVILLE or HDR
in the performance of this Agreement, and disputes concerning payment.
Exhaustion of Remedies Required: No action may be filed unless the parties first negotiate. If
timely Notice is given, but an action is initiated prior to exhaustion of these procedures, such
action shall be stayed, upon application by either party to a court of proper jurisdiction, until the
procedures have been complied with.
Notice of Dispute
For disputes arising prior to the making of final payment promptly after thc occurrence of any
incident, action, or failure to act upon which a claim is based, the party seeking relief shall serve
the other party with a written Notice;
For disputes arising within one year after the making of final payment, CITY OF
FAYETTEVILLE shall give HDR written Notice at the address listed in the contract within
thirty (30) days after occurrence of any incident, accident, or first observance of defect or
damage. In both instances, thc Notice shall specify the nature and amount of relief sought, thc
reason relief should be granted, and the appropriate portions of this Agreement that authorize the
relief requested.
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Negotiation: Within seven days of receipt of the Notice, the Project Managers for CITY OF
FAYETTEVILLE and HDR shall confer in an effort to resolve the dispute. If the dispute cannot
be resolved at that level, then, upon written request of either side, the matter shall be referred to
the President of HDR and the Mayor of CITY OF FAYETTEVILLE or his designee. These
officers shall meet at the Project Site or such other location as is agreed upon within 30 days of
the written request to resolve the dispute.
CITY OF FAYETTEVILLE represents that it has sufficient funds or the means of obtaining
funds to remit payment to HDR for services rendered by HDR
Indemnification
Computer Models
HDR may use or modify HDR's proprietary computer models in service of CITY OF
FAYETTEVILLE under this Agreement, or HDR may develop computer models during HDR's
service to CITY OF FAYETTEVILLE under this Agreement. Such use, modification, or
development by HDR does not constitute a license to CITY OF FAYETTEVILLE to use or
modify HDR's computer models. Said proprietary computer models shall remain the sole
property of CITY OF FAYETTEVILLE and HDR will enter into a separate license agreement if
CITY OF FAYETTEVILLE wishes to use HDR's computer models.
Ownership of Documents
All documents provided by CITY OF FAYETTEVILLE remain the property of CITY OF
FAYETTEVILLE. HDR may retain reproduced copies of drawings and copies of other
documents.
Engineering documents, drawings, and specifications prepared by HDR as part of the Services
shall become the property of CITY OF FAYETTEVILLE when HDR has been compensated for
all Services rendered, provided, however, that HDR shall have the unrestricted right to their use.
HDR shall, however, retain its rights in its standard drawings details, specifications, databases,
computer software, and other proprietary property. Rights to intellectual property developed,
utilized, or modified in the performance of the Services shall remain the property of HDR
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Any files delivered in electronic medium may not work on systems and software different than
those with which they were originally produced. HDR makes no warranty as to the compatibility
of these files with any other system or software. Because of the potential degradation of
electronic medium over time, in the event of a conflict between the sealed original drawings/hard
copies and the electronic files, the sealed drawings/hard copies will govern.
Notices
Any Notice required under this Agreement will be in writing, addressed to the appropriate party
at the following addresses:
CITY OF FAYETTEVILLE's address:
City of Fayetteville
Mayor Dan Coody
113 W. Mountain
Fayetteville, AR 72701
HDR ENGINEERING INC.'s address
500 108i11 Avenue N.E.
Suite 1200
Bellevue, Washington 98004
Successor and Assigns
CITY OF FAYETTEVILLE and HDR each binds himself and his successors, executors,
administrators, and assigns to the other party of this Agreement and to the successors, executors,
administrators, and assigns of such other party, in respect to all covenants of this Agreement;
except as above, neither CITY OF FAYETTEVILLE nor HDR shall assign, sublet, or transfer
his interest in the Agreement without the written consent of the other.
Controlling Law
This Agreement shall be subject to, interpreted and enforced according to the laws of the State of
Arkansas without regard to any conflicts of law provisions.
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Entire Agreement
This Agreement represents the entire Agreement between HDR and CITY OF FAYETTEVILLE
relative to the Scope of Services herein. Since terms contained in purchase orders do not
generally apply to professional services, in the event CITY OF FAYETTEVILLE issues to HDR
a purchase order, no preprinted terms thereon shall become a part of this Agreement. Said
purchase order document, whether or not signed by HDR, shall be considered as a document for
CITY OF FAYETTEVILLE's internal management of its operations.
SPECIAL CONDITIONS
HDR shall be and shall remain liable, in accordance with applicable law, for all damages to
CITY OF FAYETTEVILLE caused by HDR's negligent performance of any of the services
famished under this Agreement except for errors, omissions or other deficiencies to the extent
attributable to CITY OF FAYETTEVILLE or CITY OF FAYETCEVILLE-furnished data.
HDR's obligations under this clause are in addition to HDR's other obligations under this
Agreement or State law and in no way diminish any other rights that CITY OF
FAYETTEVII.LE may have against HDR for services provided.
Remedies
Except as may be otherwise provided in this Agreement, all claims, counter -claims, disputes and
other matters in question between CITY OF FAYETTEVILLE and HDR arising out of or
relating to this Agreemcnt or the breach thereof will be decided in a court of competent
jurisdiction within Arkansas.
Audit: Access to Records
HDR shall maintain books, records, documcnts and other evidence directly pertinent to
performance on work under this Agreement in accordance with generally accepted accounting
principles and practices consistently applied in effect on the date of execution of this Agreement.
HDR shall also maintain the financial information and data used by HDR in the preparation of
support of the cost submission required for any negotiated agreement or change order and send
to CITY OF FAYETTEVILLE a copy of the cost summary submitted. CITY OF
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FAYETTEVILLE, or any of their authorized representatives shall have access to all such books,
records, documents and other evidence for the purpose of inspection, audit and copying during
normal business hours. HDR will provide proper facilities for such access and inspection.
Records shall be maintained and made available during performance on assisted work under this
Agreement and until three years from the date of final payment for the project. In addition, those
records which relate to any controversy arising out of such performance, or to costs or items to
which an audit exception has been taken, shall be maintained and made available until three
years after the date of resolution of such appeal, litigation, claim or exception.
This nght of access clause (with respect to financial records) applies to:
Negotiated prime agreements:
Negotiated change orders or agreement amendments in excess of $10,000 affecting the price of
any formally advertised, competitively awarded, fixed price agreement:
With respect to record pertaining directly to subagreement performance, excluding any financial
records of HDR;
If there is any indication that fraud, gross abuse or corrupt practices may be involved;
If the subagreement is terminated for default or for convenience.
Covenant Against Contingent Fees
HDR warrants that no person or selling agency has been employed or retained to solicit or secure
this Agreement upon an agreement of understanding for a commission, percentage, brokerage or
continent fee, excepting bona fide employees or bona fide established commercial or selling
agencies maintained by HDR for the purpose of securing business. For breach or violation of
this warranty, CITY OF FAYETTEVILLE shall have the right to annul this Agreement without
liability or at its discretion, to deduct from the contract price or consideration, or otherwise
recover, the full amount of such commission, percentage, brokerage, or contingent fee.
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Gratuities
If CITY OF FAYETTEVILLE finds after a notice and hearing that HDR or any of HDR's agents
or representatives, offered or gave gratuities (in the form of entertainment, gifts or otherwise) to
any official, employee or agent of CITY OF FAYETTEVILLE, in an attempt to secure an
agreement or favorable treatment in awarding, amending or making any determinations related to
the performance of this Agreement, CITY OF FAYETTEVILLE may, by written notice to HDR
terminate this Agreement. CITY OF FAYETTEVILLE may also pursue other rights and
remedies that the law or this Agreement provides. However, the existence of the facts on which
CITY OF FAYETTEVILLE bases such finding shall be in issue and may be reviewed in
proceedings under the Remedies clause of this Agreement.
In the event this Agreement is terminated as provided above, CITY OF FAYETTEVILLE may
pursue the same remedies against HDR as it could pursue in the event of a breach of the
Agreement by HDR As a penalty, in addition to any other damages to which it may be entitled
by law, CITY OF FAYETTEVILLE may pursue exemplary damages in an amount (as
determined by CITY OF FAYETTEVILLE) which shall be not less than three nor more than ten
times the costs HDR incurs in providing any such gratuities to any such officer or employee.
Arkansas Freedom of Information Act
City contracts and documents, including internal documents and documents of subcontractors
and sub -consultants, prepared while performing City contractual work are subject to the
Arkansas Freedom of Information Act (FOIA). If a Freedom of Information Act request is
presented to the CITY OF FAYETTEVILLE, HDR will do everything possible to provide the
documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information
Act (A.C.A. §25-19-10I et seq.). Only legally authorized photocopying costs pursuant to the
FOIA may be assessed for this compliance.
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Debarment And Suspension
I certify that to the best of my knowledge and belief that the company that I represent and its
principals:
(a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any Federal department or agency;
(b)
Have not within a three year period preceding this proposal been convicted of or had a
civil judgement rendered against them for commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a public (Federal, State, or
local) transaction or contract under a public transaction; violation of Federal or State
antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or
destruction of records, making false statements, or receiving stolen property;
(c) Are not presently indicted for or otherwise criminally or civilly charged by a government
entity (Federal, State, or local) with commission of any of the offenses enumerated in
paragraph (b) of this certification; and
(d) Have not within a three-year period preceding this application/proposal had one or more
public transactions (Federal, State, or local) terminated for cause or default.
I understand that a false statement on this certification regarding debarment and suspension may
be grounds for rejection of this proposal or termination of the award. In addition, under 18 USC
Sec. 1001, a false statement may result in a finc of up to $10,000 or imprisonment for up to 5
years, or both. I further certify that I will obtain a similar certification for each subcontract
awarded in excess of $25,000.
DEBARMENT CERTIFICATION
AUTHORIZED REPRESENTATIVE
COMPANY NAME: R ENG N ERING, INC.
SIGNATURE:/// (% '— DATE: I�r'S 5
PRINTED NAME: Re Ag a a ewes TITLE: S40.4.r V 'te Piike d'
to
IN WITNESS WHEREOF, CITY OF FAYETTEVILLE, ARKANSAS by and through its
Mayor, and HDR, by its authorized officer have made and executed this Agreement as of the day
and year first above written.
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o;••i By:
• •p, Mayor
:FAYETTEVILLE:
.e.• c.).:64' ATTEST:
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.....'GTONC.•�`' By:
"""""'� City Clerk
CITY OF FAY 11 EVILLE RICA SAS
HDR ENG ► " : IN % INC
By:
Title
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Changes, modifications or amendments in scope, price or fees to this Contract shall not be
allowed without formal contract amendment approved by the Mayor and the City Council in
advance of the change in scope, cost, fees, or delivery schedule.
END OF AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES
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City of Fayetteville
Work Plan to Audit the City's 2003 Water & Sewer Rate Study
and Provide Other Rate/Contractual Related Services
Task 1—Initial Meeting and Data Collection
Task Objective: Bring the Consultant, City management and staff together, at the start of the
project, to assure that both parties have a mutual understanding of the goals, objectives, issues
and concerns related to the study. Review and assess the City's existing water and sewer data,
and provide a written data request detailing the data required to complete the study.
The initial project meeting is used as a starting point for the study. It is proposed that the initial
project meeting be approximately '/: day in length, and review the goals, objectives and key
issues for the study. At the same time, provide a written data request to the City to obtain the
necessary data and information needed to complete the study. The data and information
requested for this study should be, for the most part, readily available information (e.g. financial,
statistical, customer, etc.).
Expected City Staff Support for Task 1:
• Have their key management/project team members attend a''/ day planning meeting.
• Gather the data requested in the written data request provided by EES. (Note: typically
requires 20 – 40 hours of total staff time to provide.)
Work Product Deliverables as a Result of Task 1—Initial Kick-off Meeting.
• Face-to-face meeting to identify key objectives, issues and conccros by both parties.
• An initial written data request to the City.
• identification of any data constraints.
Task 2—Rate Study Audit
Task Objective: Provide an audit of the City's 2003 Water and Sewer Rate Study. The audit
should review the study's adherence to American Water Works Association (AWWA) rate .setting
methodologies and principles, and the appropriate application of those methodologies and
principles to the specific and unique circumstances of the City.
The audit of the City's 2003 water and rate study has three main objectives. First, the audit must
confirm that the study met the contractual requirements of the City's existing wholesale contracts
(e.g. methodology to be used, etc.). Next, the audit should confirm the study's adherence to the
principles and methodologies contained in the American Water Works Association (AWWA) M-
1 Manual, Principles of Water Rates. Fees and Charges. Finally, the audit and review should
consider the appropriate application of the AWWA methodologies to the specific circumstances
of the City. While the City's rate study likely adheres to the AWWA methodologies, the
appropriate application of those methodologies is an important question to be answered. EES
will review the City's model in "line by line" detail and discuss it in relation to the requirements
of this task. At the end of this task, our conclusions and recommendations will be provided. The
L gees Work Plan - Rate Study Audit A•f
mCity of Fayetteville
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written report and presentations associated with the rate study audit are provided under Task 5.
Expected City Staff Support for Task 2:
• Provide any relevant background concerning the 2003 study
• Provide necessary assistance in HDR/EES understanding the City's water and sewer systems
and their operational and design characteristics
Work Product Deliverables as a Result of Task 2 — Rate Study Audit.
• Review of the existing wholesale contracts for rate setting provisions/requirements
• Review/audit of the City's 2003 water and sewer rate study for adherence to the AWWA M-1
rate setting methodologies
• Review/audit of the City's 2003 water and sewer rate study for the appropriate application of
the AWWA M-1 rate setting methodologies, as they apply to the City's specific
circumstances
Task 3—Explore Alternative Business Relationships and Develop Model
Contracts
Task Objective: Explore alternative business relationships with various entities served by the
City, and develop model contracts to support those alternative business relationships. The
model contracts developed as a part of this task are intended for discussion purposes only.
The City wants to explore alternative business relationships with various entities and develop
model contracts. The first step of this process is to explore the existing business relationships.
From the prior task, I IDR/EES will have an understanding of the current contractual relationship
and the services that the City provides and the responsibilities of the wholesale customer. The
City has initially identified Elkins, Greenland, Farmington, University of Arkansas and
Washington Water Authority for a review of alternative business relationships. Phis task will
likely identify multiple and different approaches for business relationships. An important aspect
of this task is to gain an understanding of the City's goals and objectives for changing an existing
business relationship, along with the perspective each City customer. From this task, a matrix of
potential business relationships will be developed that will attempt to match each parties needs.
In developing the model contracts, the first step will be a review of other wholesale contracts.
HDR/EES already has an extensive library of wholesale contracts. From these contracts, a
comparison will he made of the alternative business relationships, and the key components
required of each contract. HDR/EES will develop up to three (3) model contracts to reflect the
varying business relationship between the parties. HDR/EES will develop a "base" model
contract, and this contract will be modified to reflect the alternative business relationships. The
model contracts are for discussion purposes only. They are not intended to be implemented
without further discussion and negotiation between the parties, along with legal review by the
City attorney.
Expected City Staff Support for Task 3:
• Discuss the existing business relationships with the various parties
• Discuss existing concepts/discussions concerning alternative business relationships
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Work Product Deliverables as a Result of Task 3 — Explore Alternative Business Relationships
and Develop Model Contracts
• Review alternative business relationships and develop a matrix of existing and potential
alternative business relationships. Reviews of business relationships will be undertaken for
Elkins, Greenland, Farmington, University of Arkansas and Washington Water Authority.
■ Review of other utility contracts under altemative business relationships
• Development of up to three (3) model contracts to support alternative business relationships.
Task 4—Reports and Meetings
Task Objective: Provide a well-written report to summarize the findings, conclusions and
recommendations of the rate study. Provide effective public presentations of the findings, results
and recommendations of the study.
Upon completion of the tasks, HDI2/EES will develop written reports for each task. Given the
unique nature of each task, a separate written report will be prepared for the rate study audit, the
alternative business relationship/model contract task, and the water service territory task. For
each report, a draft final version will be prepared. One printed copy will be provided to the City,
along with an electronic (PDF) version of the report. The City will provide comments and
suggested changes to the report, and final reports will be issues. The City has requested eleven
(11) bound copies of each report and an electronic (PDF) copy.
Two public meetings are planned for this study. It is further assumed that these two meetings
will occur on the same day to minimize time and travel costs. The first meeting will be to the
City's working selection committee. The second meeting will be to the Fayetteville Water and
Sewer Committee/Fayetteville City Council.
Individual meetings/presentations to individual cities or City Councils has not been included
within our proposed fees. HDR/EES will gladly provide these services on a time and material
basis. The estimated fees for an individual meeting would be $2,500 to $4,000 depending upon
the amount of preparation time required.
Expected City Staff Support for Task 4:
■ Review the draft reports and provide comments for the final reports
• Assist in reviewing the proposed handouts for public meetings and coordinate meeting times
and locations
Work Product Deliverables as a Result of Task 4 — Reports and Meetings
• Draft and final reports for the Ratc Study Audit and Development of Model Contracts.
• Development of handouts and attendance at up to two (2) public presentations with the
working selection committee and the Fayetteville Water and Sewer Committee/Fayetteville
City Council to discuss the study and its conclusions, and make recommendations.
Task 5—Project Administration
Task Objective: Manage the study to assure that it completed on time and within budget.
Coordinate a work plan with the City's project manager to assure that the project meets the
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goals and objectives of the City. Provide monthly progress reports to the City.
To assure that the project is completed on time and within budget, the 1-IDR/EES project manager
for this study will work closely with the City's project manger to maintain open and clear
communication. A work plan will be developed to assure that both parties understand the goals
and objectives of each task, along with deliverables for each.
As invoices are prepared, a monthly progress report will be provided to keep the City's project
manager aware of any issues or problems that may arise, along with a clear understanding of the
status of the budget.
Expected City Staff Support for Task 5:
o Review of the HDR/EES work plan
n Availability of the City's Project Manager to discuss and resolve any problems, issues or
concerns of either party.
Work Product Deliverables as a Result of Task 5 — Project Administration
O Monthly invoice and project status report
Project Time Schedule
An important element of this study is the time schedule. The rate study audit will begin
immediately and a draft report should be completed in approximately forty-five days. HDR/EES
understands that the City of Farmington is interested in receiving the results of the audit prior to
June. HDR/EES will make every effort to meet this schedule.
The review of alternative business relationships and development of model contracts is
anticipated to require 90 to 120 days to complete. These are fairly complex issues and will
require sufficient time to understand the issues, determine the alternative approaches and
assemble the alternative solutions.
Provided below on Figure 1 is a summary of the projected time schedule for this project.
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Figure
Fayetteville
0
Study Audit
Project
MED Schedule
2005
Task
1
2
3
4a
4b
5
Description
Initial Meeting/Data Collection
Rate Study Audit
Alt. Business Relationship andJ
Model Contracts
Written Reports
Public Presentations
Project Administration
April
May
June
July
August
Sept.
Oct.
0s
t
1
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