HomeMy WebLinkAbout18-22 RESOLUTION4 cnrErT
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113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 18-22
File Number: 2021-1124
BLACK & VEATCH WATER AND SEWER RATE STUDY:
A RESOLUTION TO APPROVE AN INCREASE IN PROJECT CONTINGENCY FUNDS IN
THE AMOUNT OF $25,000.00 FOR SCOPE OF WORK MODIFICATIONS AS NEEDED
FOR THE WATER AND SEWER RATE STUDY BEING PERFORMED BY BLACK &
VEATCH CORPORATION
WHEREAS, on August 18, 2020, the City Council passed Resolution No. 212-20 approving a
Professional Engineering Services Agreement with Black & Veatch Corporation for a water and sewer
rate study; and
WHEREAS, due to the long passage of time since the last cost of service study was performed and
the consequent shifts in cost impact among customer classes, the City anticipates additional scope of
work and change orders being necessary in order to complete the study.
NOW, THEREFORE, 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 an increase in
project contingency funds in the amount of $25,000.00 for scope of work modifications as needed for
the water and sewer rate study being performed by Black & Veatch Corporation.
PASSED and APPROVED on 1/18/2022
Page 1 Printed on 1119122
Resolution: 18-22
File Number.' 2021-1124
Attest:
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Kara Paxton, City Clerk Treasur—q4d. 9 :
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Page 2 Printed on 1119122
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Text File
File Number: 2021-1124
Agenda Date: 1/18/2022 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Resolution
Agenda Number: A.3
BLACK & VEATCH WATER AND SEWER RATE STUDY:
A RESOLUTION TO APPROVE AN INCREASE IN PROJECT CONTINGENCY FUNDS IN THE
AMOUNT OF $25,000.00 FOR SCOPE OF WORK MODIFICATIONS AS NEEDED FOR THE
WATER AND SEWER RATE STUDY BEING PERFORMED BY BLACK & VEATCH
CORPORATION
WHEREAS, on August 18, 2020, the City Council passed Resolution No. 212-20 approving a Professional
Engineering Services Agreement with Black & Veatch Corporation for a water and sewer rate study; and
WHEREAS, due to the long passage of time since the last cost of service study was performed and the
consequent shifts in cost impact among customer classes, the City anticipates additional scope of work and
change orders being necessary in order to complete the study.
NOW, THEREFORE, 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 an increase in project
contingency funds in the amount of $25,000.00 for scope of work modifications as needed for the water and
sewer rate study being performed by Black & Veatch Corporation.
City of Fayetteville, Arkansas Page 1 Printed on 111912022
Paul Becker
Submitted By
City of Fayetteville Staff Review Form
2021-1124
Legistar File ID
1/18/2022
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
12/29/2021 CHIEF FINANCIAL OFFICER (110)
Submitted Date Division / Department
Action Recommendation:
Approval of increasing contingency funds in the amount of $25,000 for scope of work modifications as needed for
the water sewer rate study being performed by Black & Veatch.
Budget Impact:
5400.720.1840.5314.00 Water/Sewer
Account Number
Fund
02064.1
Water & Sewer Rate / Operations Study
Project Number
Project Title
Budgeted Item? Yes
Current Budget
$ 95,554.00
Funds Obligated
$ -
Current Balance
$ 95,554.00
Does item have a cost? Yes
Item Cost
$ 25,000.00
Budget Adjustment Attached? No
Budget Adjustment
$ -
Remaining Budget
V20210527
Purchase Order Number: 2020-0628 Previous Ordinance or Resolution # 212-20
Change Order Number: N/A - Contingency Increase Only Approval Date:
Original Contract Number: 2020-00000054
Comments:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF JANUARY 18, 2022
TO: Mayor and City Council
FROM: Paul A. Becker, Chief Financial Officer
DATE: Wednesday, December 29, 2021
CITY COUNCIL MEMO
SUBJECT: Contingency increase for Water/Sewer rate study with Black & Veatch
RECOMMENDATION:
Approval of increasing contingency funds in the amount of $25,000 for scope of work
modifications as needed for the water sewer rate study being performed by Black & Veatch.
BACKGROUND:
The last Comprehensive Water and Sewer Rate Study for the City was performed in 2008. Since
that time the rates have provided adequate revenues to fund operational and capital needs for
the system because a 3% annual increase had been incorporated in the rate structure and
ordinance approved by the City Council.
On August 18, 2020, City Council approved a contract with Black & Veatch via Resolution 212-
20 in the amount of $93,355 with a contingency of $18,600. Change Order #1 was approved
8/10/2021 in the amount of $15,040 leaving a contingency balance of $3,560.00.
DISCUSSION:
Due to the long passage of time since the last cost of service study was performed and the
consequent shifts in cost impact among customer classes, the City anticipates additional scope
of work and change orders being necessary in order to complete the study.
The current request is for City Council to increase contingency funds by $25,000. Change orders
for the exact increase in scope will be modified via an additional formal change order, within the
$25,000 increased contingency, with the approval of the Water and Sewer Committee.
The original budget for this project was $368,463.00. After approval of the additional $25,000 in
contingency, the project will still be within budget at a total cost of $136,955.
BUDGET/STAFF IMPACT:
Sufficient funds are budgeted in the project for this increase in contingency funds.
Attachments:
Resolution 212-20
Change Order #1
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
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113 West Mountain Street
Fayettevdie AR 72701
(479) 575-8323
Resolution: 212-20
File Number: 2020-W3
RFQ 20-01 # 10 BLACK & VEATCH CORPORATION:
A RESOLUTION TO APPROVE A PROFESSIONAL ENGINEERING SERVICES
AGREEMENT WITH BLACK AND VEATCH CORPORATION, PURSUANT TO RFQ 20-01
SELECTION # 10, IN AN AMOUNT NOT TO EXCEED S93,355.00 FOR A WATER AND
SEWER RATE STUDY, AND TO APPROVE A PROJECT CONTINGENCY IN THE
AMOUNT OF S 18,600.00
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 a professional
engineering services agreement with Black and Veatch Corporation, pursuant to RFQ 20-01 Selection
# 10. in an amount not to exceed S93.355.00 for a water and sewer rate study, and further approves a
project contingency in the amount of S 18,600.00.
PASSED and APPROVED on 8/18/2020
i
Approved:
Attest:
,`ptttttrrrl
R K
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Kara Paxton. City Clerk Treasurer: FAV��EVI��f s
P699 1 Panted on ai19i20
City of Fayetteville, Arkansas 1'3West MountainStreet
ayettevdle AR 72701
Jk, (479) 575-8323
Text File
L
File Number: 2020-0643
Agenda Date: 8,18/2020 version Status: Passed
In Control: City Council Meetinq File Type: Resowtion
Agenda Number: A 6
RFQ 20-01 # 10 BLACK & VEATCH CORPORATION:
A RESOLUTION TO APPROVE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT
WITH BLACK AND VEATCH CORPORATION, PURSUANT TO RFQ 20-01 SELECTION #10, IN
AN AMOUNT NOT TO EXCEED S93,355.00 FOR A WATER AND SEWER RATE STUDY. AND TO
APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF S18,600.00
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 a professional
engineering services agreement with Black and Veatch Corporation, pursuant to RFQ 20-01 Selection #10, in
an amount not to exceed $93,355.00 for a water and sewer rate study, and further approves a project
contingency in the amount of S 18.600.00.
City of Fayetteville. Arkansas Page 1 Printed on 1V19R020
AGREEMENT
For
PROFESSIONAL ENGINEERING SERVICES FOR
A WATER AN❑ SEWER RATE STUDY
Between
CITY OF FAYETTEVILLE, ARKANSAS
And
BLACK & VEATCH CORPORATION
THIS AGREEMENT is made as of August I8, 120 20 , by and between City of Fayetteville,
Arkansas, acting by and through its Mayor (hereinafter called CITY OF FAYETTEVILLE OR CITY) and Black &
Veatch Corporation with its principal office located in Kansas City, Missouri (hereinafter called ENGINEER or
BVC).
WHEREAS, CITY OF FAYETTEVILLE annually solicits statements of qualifications and BLACK AN❑ VEATCH
CORPORATION responded to RFQ 20-01 and was selected by committee.
WHEREAS, CITY OF FAYETTEVILLE from time to time requires professional engineering services in connection
with the evaluation, planning, design, and/or construction administration of capital improvement projects.
Therefore, CITY OF FAYETTEVILLE and BVC in consideration of their mutual covenants agree as follows:
BVC 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 BVC'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.
CITY OF FAYETTEVILLE and BVC agree in addition to this agreement, the following documents are hereby
incorporated:
• Appendix A —Scope of Work and Fees
• Appendix B — Black and Veatch Corporation's response to RFC? 20-01
■ Appendix C —Black and Veatch Corporation's Certificate ❑f Insurance
RFQ 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 1 of 16
SECTION 1- AUTHORIZATION OF SERVICES
1.1 Services on any assignment shall be undertaken only upon written Authorization of CITY OF
FAYETTEVILLE and agreement of BVC.
1.2 Assignments from CITY OF FAYETTEVILLE to BVC may include services described hereafter as Basic
Services or as Additional Services of BVC.
1.3 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 ENGINEER
2.1 Perform professional design services in connection with the Project as hereinafter stated.
2.1.1 The Scope of Services to be furnished by ENGINEER during this project is included in APPENDIX A
attached hereto and made part ❑f this Agreement.
2.2 BVC shall coordinate their activities and services with the CITY OF FAYETTEVILLE. BVC and CITY OF
FAYETTEVILLE agree that BVC has full responsibility for the engineering services.
SECTION 3 - RESPONSIBILITIES OF CITY OF FAYETTEVILLE
3.1 CITY OF FAYETTEVILLE shall, within a reasonable time, so as not to delay the services of BVC:
3.1.1 Provide full information as to CITY OF FAYETTEVILLE's requirements for the Project.
3.1.2 Assist BVC by placing at BVC's disposal all available information pertinent to the assignment
including previous reports and any other data relative thereto.
3.1.3 Obtain for BVC access to property reasonably necessary for BVC t❑ perform its services under this
Agreement.
3.1.4 Examine all studies, reports, cost opinions, Drawings, proposals, and other documents presented by
ENGINEER and render in writing decisions pertaining thereto.
RFQ 20-01, Engineering and Architectural Services— Selection #10— Water Sewer Rate Study
Last Revised 07.13.2020
Page 2 of 16
3.1.5 The City's Chief Financial ❑fficer is the CITY OF FAYETTEVILLE's project representative with respect to
the services to be performed under this Agreement. Such person shall have complete authority t❑
transmit instructions, receive information, interpret and define CITY OF FAYETTEVILLE's policies and
decisions with respect to materials, equipment, elements and systems to be used in the Project, and
other matters pertinent to the services covered by this Agreement.
3.1.6 CITY OF FAYETTEVILLE will review all documents and provide written comments to BVC in a timely
manner.
SECTION 4 - PERIOD OF SERVICE
4.1 This Agreement will become effective upon the first written notice by CITY OF FAYETTEVILLE
authorizing services hereunder after issuance of a Purchase Order signed by the Purchasing
Manager.
4.2 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. BVC 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.
4.3 BVC shall provide a schedule of its services and include such schedule with the scope in APPENDIX A.
SECTION S - PAYMENTS TO ENGINEER
5.1 The maximum not -to -exceed amount authorized for this Agreement is $93,355.00 US Dollars.
5.2 The CITY OF FAYETTEVILLE shall compensate BVC based upon a unit price basis as described in
APPENDIX A.
5.2.1 The maximum not -to -exceed amount authorized for this Agreement is based upon the estimated fee
scope, hours, costs and expenses per phase. The estimated fee spreadsheets shall he included in
APPENDIX A. The amount for any phase may be more or less than the estimate, however the
maximum not -to -exceed amount shall not be exceeded without a formal contract amendment.
RFq 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 3 of 16
5.3 Statements
5.3.1 Monthly statements for each calendar month shall be submitted to CITY OF FAYETTEVILLE consistent
with BVC's normal billing schedule. Once established, the billing schedule shall be maintained
throughout the duration of the Project. Applications for payment shall be made in accordance with
a format to be developed by BVC and approved by CITY OF FAYETTEVILLE. Applications for payment
shall be accompanied each month by the updated project schedule, Final payment for professional
services shall be made upon CITY OF FAYETTEVILLE's approval and acceptance with the satisfactory
completion of the professional engineering services.
5.4 Payments
5.4.1 All statements are payable upon receipt and generally due within thirty (30) days. If a portion of
BVC'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 BVC 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.
5.5 Finai Payment
5.5.1 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, BVC shad
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 specifically exempted by BVC
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 BVC.
RFQ 20-01, Engineering and Architectural Services — Selection #f10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 4 of 16
SECTION 6 - GENERAL CONSIDERATIONS
6.1 Insurance
6.1.1 During the course of performance of these services, BVC will maintain (in United States Dollars) the
insurance coverages as presented and listed in APPENDIX C.
BVC will provide to CITY OF FAYETTEVILLE certificates as evidence of the specified insurance, listing
the CITY as an additional insured, within ten calendar days of the date of this Agreement and upon
each renewal of coverage.
6.1.2 CITY OF FAYETTEVILLE and BVC waive all rights of subrogation against each other and their officers,
directors, agents, or employees for damage covered by property insurance during and after the
completion of BVC's services. A provision similar to this shall be incorporated into all construction
contracts entered into by the CITY OF FAYETTEVILLE, and all construction contractors shall be
required to provide waivers of subrogation in favor of CITY OF FAYETTEVILLE and BVC for damage
covered by any construction contractor's property insurance.
6.2 Professional Responsibility
6,2.1 BVC will exercise reasonable skill, care, and diligence in the performance of BVC's services and will
carry out its responsibilities in accordance with customarily accepted professional engineering
practices, CITY OF FAYETTEVILLE Standards, Arkansas State Law and the Rules and regulations of the
Arkansas Board of Licensure For Professional Engineers and Professional Surveyors. CITY OF
FAYETTEVILLE will promptly report to BVC any defects or suspected defects in BVC's services of
which CITY OF FAYETTEVILLE becomes aware, so that BVC can take measures to minimize the
consequent of such defect. BVC 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 caused by BVC's failure to meet customarily accepted professional engineering
practices. This is BVC's sole obligation and guarantee and the CITY OF FAYETTEVILLE's exclusive
remedy with the respect to the quality of the Services.
RFQ 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 5 of 16
6.2.2 In addition, BVC will be responsible to CITY OF FAYETTEVILLE for damages caused by its negligent
conduct during its activities at the Project Site to the extent covered by BVC's Commercial General
Liability and Automobile Liability Insurance policies.
6.3 Cost Opinions and Projections
6.3.1 Cost opinions and projections prepared by BVC relating to construction costs and schedules,
operation and maintenance costs, equipment characteristics and performance, and operating
results are based on BVC's experience, qualifications, and judgment as a design professional. Since
BVC has no control over weather, cost and availability of labor, material and equipment, labor
productivity, construction Contractors' procedures and methods, unavoidable delays, construction
Contractors' methods of determining prices, economic conditions, competitive bidding or market
conditions, and other factors affecting such cost opinions or projections, BVC does not guarantee
that actual rates, costs, performance, schedules, and related Items will not vary from cost opinions
and projections prepared by BVC.
6.4 Changes
6.4.1 CITY OF FAYETTEVILLE shall have the right to make changes within the general scope of BVC'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 duly
authorized officer of BVC.
6.5 Termination
6.SA 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 terminating party, provided that no termination may be effected unless the other party is
given:
6.5.1.1 Not less than ten (10) calendar days written notice (delivered by certified mail, return receipt
requested) of intent to terminate,
RFQ 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 6 of 16
6.5.1,2 An opportunity for consultation with the terminating party prior to termination.
6.5.2 This Agreement may be terminated in whole or in part in writing by CITY OF FAYETTEVILLE for its
convenience, provided that BVC is given:
6.5.2.1 Not less than ten (10) calendar days written notice (delivered by certified mail, return receipt
requested) of intent to terminate,
6.5.2.2 An opportunity for consultation with the terminating party prior to termination.
6.5.3 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
6.5.3.1 No amount shall be allowed for anticipated profit ❑n unperformed services or other work,
6.5.3.2 Any payment due to BVC at the time of termination may be adjusted t❑ cover any additional
costs to CITY OF FAYETTEVILLE because of BVC's default.
6.5.4 if termination for default is effected by BVC, 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 BVC for
services rendered and expenses incurred prior t❑ the termination, in addition to termination
settlement costs reasonably incurred by BVC relating to commitments which had become firm prior
t❑ the termination.
6.5.5 Upon receipt ❑f a termination action under Paragraphs 6.5.1 or 6.5.2 above, BVC shall:
6.5.5.1 Promptly discontinue all affected work (unless the notice directs otherwise),
6.5.5.2 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 BVC in performing this Agreement, whether completed or in process.
6.5.6 Upon termination under Paragraphs 6.5.1 or 6.5.2 above CITY OF FAYETTEViLLE may take ❑ver the
work and may award another party an agreement to complete the work under this Agreement.
RFQ 20.01, Engineering and Architectural Services — Selection #10 - Water Sewer Rate Study
Last Revised 07.13.2020
Page 7 of 16
6.5.7 If, after termination for failure of BVC to fulfill contractual obligations, it is determined that BVC 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 in Paragraph 6.5.4 of this clause.
6.6 Delays
6.6.1 In the event the services of BVC are suspended or delayed by CITY OF FAYETTEVILLE or by other
events beyond BVC's reasonable control, BVC shall be entitled to additional compensation and time
for reasonable costs incurred by BVC in temporarily closing down or delaying the Project.
6.7 Rights and Benefits
5.7.1 BVC'S services will be performed solely for the benefit of CITY OF FAYETTEVILLE and not for the
benefit of any other persons or entities.
6.8 Dispute Resolution
6.8.1 Scope of Paragraph: The procedures of this Paragraph shall apply to any and all disputes between
CITY OF FAYETTEVILLE and BVC 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 BVC in the performance of this Agreement,
and disputes concerning payment.
6.8.2 Exhaustion of Remedies Required: No action may be filed unless the parties first negotiate. If timely
Notice is given under Paragraph 6.8.3, 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 in Paragraphs 6.8.3 and 6.8.4 have been complied with.
6.8.3 Notice of Dispute
6.8.3.1 For disputes arising prior to the making of final payment promptly after the 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;
RFq 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 8 of 16
6.8.3.2 For disputes arising within one year after the making of final payment, CITY OF FAYETTEVILLE
shall give BVC written Notice at the address listed in Paragraph 6.14 within thirty (30) days after
occurrence of any incident, accident, or first observance of defect or damage. in both instances.
the Notice shall specify the nature and amount of relief sought, the reason relief should be
granted, and the appropriate portions of this Agreement that authorize the relief requested.
6.8.4 Negotiation: Within seven days of receipt of the Notice, the Project Managers for CITY OF
FAYETTEVILLE and BVC 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 BVC 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.
6.9 CITY OF FAYETTEVILLE represents that it has sufficient funds or the means of obtaining funds to
remit payment to BVC for services rendered by BVC.
6.10 Publications
6.10.1 Recognizing the importance of professional development on the part of BVC's employees and the
importance of BVC's public relations, BVC may prepare publications, such as technical papers,
articles for periodicals, and press releases, pertaining to BVC's services for the Project. Such
publications will be provided to CITY OF FAYETTEVILLE in draft form for CITY OF FAYETTEVILLE's
advance review. CITY OF FAYETTEVILLE shall review such drafts promptly and provide CITY OF
FAYETTEVILLE's comments to BVC. CITY OF FAYETTEVILLE may require deletion of proprietary data
or confidential information from such publications, but otherwise CITY OF FAYETTEVILLE will not
unreasonably withhold approval. The cost of BVC's activities pertaining to any such publication shall
be for BVC's account.
6.11 indemnification
6.11.1 CITY OF FAYETTEVILLE agrees that it will require all construction Contractors to indemnify, defend,
and hold harmless CITY OF FAYETTEVILLE and BVC from and against any and all loss where loss is
caused or incurred or alleged to be caused or incurred in whole or in part as a result of the
RFQ 20-01, Engineering and Architectural Services — Selection ##10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 9 of 16
negligence or other actionable fault of the Contractors, or their employees, agents, Subcontractors,
and Suppliers.
6.12 Ownership of documents
6.12.1 All documents provided by CITY OF FAYETTEVILLE including original drawings, disks of CAD❑
drawings and cross sections, estimates, specification field notes, and data are and remain the
property of CITY OF FAYETTEVILLE. BVC may retain reproduced copies of drawings and copies of
other documents.
6.12.2 The CITY OF FAYETTEVILLE acknowledges the BVC's plans and specifications, including documents on
electronic media ("delivered documents"), as instruments of professional services. Nevertheless,
the delivered documents prepared under this Agreement shall be delivered to and become the
property of the CITY OF FAYETTEVILLE upon completion of the services and payment in full of all
monies due to BVC. Except for the BVC's services provided for by this Agreement as related to the
construction and completion of the Project, the BVC accepts no liability arising from any reuse of the
delivered documents by the CITY OF FAYETTEVILLE, unless BVC is retained by CITY OF FAYETTEVILLE
to make modifications or otherwise reuse the delivered documents. Except where the CITY OF
FAYETTEVILLE reuses the delivered documents subsequent to the completion of the Project, nothing
contained in this paragraph shall alter the BVC's responsibilities and obligations under this
Agreement.
6.12.3 Any files delivered in electronic medium may not work on systems and software different than those
with which they were ❑riginaIly produced. BVC 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 fifes, the sealed drawings/hard copies will govern.
6.13 Notices
6.13.1 Any Notice required under this Agreement will be in writing, addressed to the appropriate party at
the following addresses:
RFq 20-01, Engineering and Architectural services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 10 of 16
CITY OF FAYETTEVILLE's address:
113 West Mountain
Fayetteville, AR 72701.
BLACK AND VEATCH CORPORATIO N's address:
11401 Lamar Avenue
Overland Park, KS 66211
6.14 Successor and Assigns
6.14.1 CITY OF FAYETTEVILLE and BVC 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 BVC shall assign, sublet, or transfer his interest in the Agreement without
the written consent of the other.
6.15 Controlling Law
6.15.1 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.
6.16 Entire Agreement
6.16.1 This Agreement represents the entire Agreement between BVC 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 BVC a purchase order, no
preprinted terms thereon shall become a part of this Agreement. Said purchase order document,
whether or not signed by BVC, shall be considered as a document for CITY OF FAYETTEVILLE`s
internal management of its operations.
RFG 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 11 of 16
SECTION 7 - SPECIAL CONDITIONS
7.1 Additional Responsibilities of ENGINEER:
7.1.1 CITY OF FAYETTEVILLE's or any Federal or State Agency's review, approval, or acceptance of design
drawings, specifications, reports and other services furnished hereunder shall not in any way relieve
BVC of responsibility to its standard of care set forth in Section 6.2.1. Except as set forth in this
Agreement, neither CITY OF FAYETTEVILLE's nor any Federal or State Agency's review, approval or
acceptance of, nor payment for any of the services shall be construed as a waiver of any rights under
this Agreement or of any cause of action arising out of the performance of this Agreement.
7.1.2 BVC shall be and shall remain liable, in accordance with applicable law, for direct third -party
property and personal injury damages to CITY OF FAYETTEVILLE to the extent caused by BVC's
negligent performance of the Services furnished under this Agreement, BVC shall not be liable for
errors, omissions or other deficiencies to the extent attributable to CITY OF FAYETTEVILLE or CITY OF
FAYETTEVILLE-furnished data.
7.1.3 In no event will BVC be liable for any special, indirect, or consequential damages including, without
limitation, damages or losses in the nature of increased Project costs, loss of revenue or profit, lost
production, claims by customers of OWNER, or governmental fines or penalties.
7.1.4 To the fullest extent permissible by law, and notwithstanding any other provision of this Agreement,
the total liability, in the aggregate, of BVC, its officers, directors, shareholders, employees, agents,
and consultants, and any of them, to CITY OF FAYETTEVILLE and anyone claiming by, through or
under CITY OF FAYETTEVILLE, for any and all claims, losses, liabilities, costs or damages whatsoever
arising out of, resulting from or in any way related to the Project or this Agreement from any form of
negligence, professional errors or omissions (including breach of contract or warranty) of BVC, its
officers, directors, employees, agents or consultants, or any of them, SHALL NOT EXCEED One
Million Dollars ($1,000,000). The parties agree that specific consideration has been given by the BVC
for this limitation and that it is deemed adequate.
RFQ 20-01, Engineering and Architectural Services — Selection 410 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 12 of 16
7.2 Remedies
7.2.1 Except as may be otherwise provided in this Agreement, all claims, counter -claims, disputes and
other matters in question between CITY OF FAYETTEVILLE and BVC arising out of or relating t❑ this
Agreement or the breach thereof will be decided in a court of competent jurisdiction within
Arkansas.
7.3 Audit: Access to Records
7.3.1 BVC shall maintain books, records, documents and other evidence directly pertinent to performance
on work under this Agreement and for three (3) years from the date of final payment under this
Agreement, in accordance with generally accepted accounting principles and practices consistently
applied in effect on the date ❑f execution ❑f this Agreement. BVC shall als❑ maintain the financial
information and data used by BVC 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 FAYETTEVILLE, the 5tate 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. BVC will provide proper facilities for
such access and inspection.
7.3.2 Records under Paragraph 7.3.1 above, 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 ❑ut of such performance,
or to costs ❑r 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.
7.3.3 This right ❑f access clause (with respect t❑ financial records) applies to:
7.3.3.1 Negotiated prime agreements:
7.3.3.2 Negotiated change orders or agreement amendments in excess of 510,000 affecting the price of
any formally advertised, competitively awarded, fixed price agreement:
RFQ 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate study
Last Revised 07.13.2020
Page 13 of 16
7.3.3.3 Agreements or purchase orders under any agreement other than a formally advertised,
competitively awarded, fixed price agreement. However, this right of access does not apply to a
prime agreement, lower tier subagreement or purchase order awarded after effective price
competition, except:
7.3.3.3.1 With respect to record pertaining directly to subagreement performance, excluding any
financial records of BVC;
7.3.3.3.2 if there is any indication that fraud, gross abuse or corrupt practices may be involved;
7.3.3.3.3 If the subagreement is terminated for default or for convenience.
7.4 Covenant Against Contingent Fees
7.4.1 BVC represents 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 BVC for the purpose of securing business. For breach or violation of this
representation, CITY OF FAYETTEVILLE shall have the right to terminate 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.
7.5 Gratuities
7.5.1 If CITY OF FAYETTEVILLE finds after a notice and hearing that BVC or any of BVC'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 BVC 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.
RFQ 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 14 of 16
7.5.2 In the event this Agreement is terminated as provided in Paragraph 7.5.1, CITY ❑F FAYETTEVILLE
may pursue the same remedies against BVC as it could pursue in the event of a breach of the
Agreement by BVC.
7.6 Arkansas Freedom of Information Act
7.6.1 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
❑F FAYETTEVILLE for records kept solely and only in the possession of BVC, to the extent required by
law, BVC will provide the documents in a prompt and timely manner as prescribed in the Arkansas
Freedom of Information Act (A.C.A. §25-19-101 et seq.). Only legally authorized photocopying costs
pursuant to the FOIA may be assessed for this compliance.
7.6.2 Pursuant to Arkansas Code Ann. § 25-19-105(b)(20), the personal information of CITY OF
FAYETTEVILLE water system customers must be treated as confidential information and shall not be
made available for inspection except by BVC's employees as required to fulfill the terms ❑f this
Agreement. Upon completion of BVC's contractual duties and after approval ❑f BVC's documents,
the BVC agrees to destroy or return t❑ CITY OF FAYETTEVILLE any copies of records containing
Information about CITY OF FAYETTEVILLE water system customers.
IN WITNESS WHEREOF, CITY ❑F FAYETTEVILLE, ARKANSAS by and through its Mayor, and BVC, by its authorized
off icer have made and executed this Agreement as of the day and year first above written.
RFQ 20-01, Engineering and Architectural Services — Selection #10 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 15 of 16
"I
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ATTEST:
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Kara Paxton, City Clerk '
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By: fo
7v4,R 7-13-2020
PM(White) 07/13/2020. 1W
Title: Associate Vice President
END OF AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES
RFQ 20-01, Engineering and Architectural Services — Selection 410 — Water Sewer Rate Study
Last Revised 07.13.2020
Page 16 of 16
Water and Sewer Rate Study #RFQ 20-01
Change Order #1
Black & Veatch Corporation ("Black & Veatch") is currently assisting the City of Fayetteville
("City') with a Water and Sewer Rate Study ("Study") to develop proposed water and
wastewater rate schedules for Fiscal Year 2022.
During the execution of this project, Black & Veatch has performed tasks that are an
extension to the original scope of work. Due to the long passage of time since the last cost
of service study was performed and the consequent shifts in cost impact among customer
classes, the City needed additional cost of service analysis scenarios and review meetings
during the study. Consequently, the additional tasks required an increase in the level of
effort and associated project costs relative to what was defined in the original scope of
work. To partially offset the increase in study execution costs, we would like to request an
amendment for some of the additional work performed.
Black & Veatch is requesting a change order in the amount of $15,040 for the following
additional tasks that the Black & Veatch team has performed in response to the City's
needs:
1. Comprehensive review of HDR's 2008 Water and Sewer Rate Study Final Report.
Black & Veatch performed a table by table analysis of the report and documented
the differences in the water and sewer Cost of Service analysis. As a result of this
task, we found that sales tax funded project information was not provided to the
study team.
2. Additional cost of service iterations. The Black & Veatch team performed additional
iterations of water and sewer cost of service analyses to address new information
such as the sales tax funded amounts that were provided and to address cost of
service shifts among customer classes and cost components.
3. Additional work sessions with the City. The proposed scope of services included
three (3) work sessions with City/Utility staff, and one (1) presentation each to the
Water & Sewer Committee and City Council. Through June 30th, Black & Veatch has
conducted the following work sessions with the City and Utility staff:
September20, 2020— Prepared for and presented a comprehensive overview
of rate setting process and concepts to the Water and Sewer Committee —
additional work session
November 18, 2020 — Preliminary cash flow review — included in original
budget
iii. January 29, 2021 — Financial plan review and preliminary cost of service and
rate structure discussion — included in original budget
iv. April 19, 2021 — Cost of service results and proposed rates — included in
original budget
April29, 2021 — Revised proposed rates — additional work session
vi. May 21, 2021 — Summary of review of HDR's report and suggested changes
to cost of service — additional work session
This change order is made effective as of August IO
2021.
ATTEST:
By:
Kara Paxton, City Clerk
BLACK & VEATCH CORPORATION
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=�:FAYETTEVILLE : X`
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KAR
By.
8-5-21 Title: Associate Vice President -Chris Klausner PM(A.White) 8/6/2021-AW
Black & Veatch Utilizing Contingency Funds
City of Fayetteville Staff Review Form
2022-0725
Legistar File ID
N/A
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Paul A. Becker 8/29/2022 CHIEF FINANCIAL OFFICER (110)
Submitted By Submitted Date Division/Department
Action Recommendation:
of $12,758 for additional services related to the Water & Sewer rate study.
5400.720.1940.5314.00
Account Number
02064.1
Project Number
Budget Impact:
Water/Sewer
Fund
Water & Sewer Rate/Operations Study
Proiect Title
Budgeted Item? Yes Current Budget
Funds Obligated
Current Balance
Does item have a cost? Yes Item Cost
Budget Adjustment Attached? No Budget Adjustment
Remaining Budget
Purchase Order Number: 2020-0628
Change Order Number: 3
Original Contract Number: 2020-00000054
Comments:
amount
$ 80,139.06
$ 80,139.06
$ 12,758.00
$ 67,381.06
Previous Ordinance or Resolution It Res. 212-20, 18-22
Approval Date: 09/25/22
CITY OF
%F FAYETTEVILLE STAFF MEMO
ARKANSAS
TO: Mayor Lioneld Jordan
FROM: Paul A. Becker, Chief Financial Officer
DATE: Monday, August 29, 2022
SUBJECT: Change Order #3 to professional engineering service agreement with Black
& Veatch for Water Sewer Rate Study
RECOMMENDATION:
Approval of change order #3 with Black & Veatch utilizing contingency funds from Resolution 18-
22 in the amount of $12,758 for additional services related to the Water & Sewer rate study.
BACKGROUND:
The last Comprehensive Water and Sewer Rate Study for the City was completed in 2008, Since
that time the rates have provided adequate revenues to fund operational and capital needs for
the system because a 3% annual increase had been incorporated in the rate structure and
ordinance approved by the City Council.
On August 18, 2020, City Council approved a contract with Black & Veatch via Resolution 212-
20 in the amount of $93,355 with a contingency in the amount of $18,600. Resolution 18-22 was
passed in January 2022 allocating project contingency funds in the amount of $25,000.00.
Change Order #1 in the amount of $15,040 was executed in August 2021 for additional tasks
required an increase in the level of effort and associated project costs relative to what was defined
in the original scope of work.
Change Order #2 was approved in February 2022 for additional water and wastewater structure
options for the City to consider for implementation.
DISCUSSION:
Change Order #3 is being requested in the amount of $12,758 to accommodate the additional
following tasks:
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Task 1: Rate Structure Approval Support
Black & Veatch performed the following additional subtasks as a result of the June 21st City
Council Meeting. These subtasks were not included in Change Order No. 2.
Subtask 1.1: Developed Additional Rate Structures
Three additional rate structure options were developed and provided to the City, as
follows:
1. Scenario 1: No change in wholesale water and sewer rates from existing
rates, with recovery of the resulting revenue shortfall through increases to the
inside City residential rates.
2. Scenario 2: Cap the maximum wholesale class rate increase at 5%.
3. Scenario 3: Cap the maximum wholesale rate increase at 10%.
Subtask 1.2: Wholesale Customer Mayors/Administrators; Meeting
Virtual attendance at a 2-hour O&A session on July 1 st for the Mayors and
Administrators from the wholesale communities.
Subtask 1.3: City Council Presentation
In -person presentation at July 19th City Council meeting.
BUDGET/STAFF IMPACT:
This change order increases the contract to $136,568 from the current value of $123,810.
Funds are existing within contingency approved by City Council and sufficient funds are budgeted
in the Sewer and Water Fund for this contract modification order.
Attachments:
Change Order#3
AGREEMENT FOR WATER AND SEWER RATE STUDY
BETWEEN
CITY OF FAYETTEVILLE, AR (City)
AND
BLACK & VEATCH MANAGEMENT CONSULTING, LLC (Black & Veatch)
CHANGE ORDER NO. 3
Change Order No. 3
Additional Scope of Work
Total Cost for Change Order No. 3: $12,758.00
Scope.
This Change Order details the work elements previously performed by Black & Veatch at the request of
City/ Utility staff that represent additional services not included in the Agreement, and for which this
amendment is being requested.
Task 1: Rate Structure Approval Support
Black & Veatch performed the following additional subtasks as a result of the June 21st City Council
Meeting. These subtasks were not included in Change Order No. 2.
Subtask 1.1: Developed Additional Rate Structures
Three additional rate structure options were developed and provided to the City, as follows:
1. Scenario 1: No change in wholesale water and sewer rates from existing rates, with recovery of
the resulting revenue shortfall through increases to the inside City residential rates.
2. Scenario 2: Cap the maximum wholesale class rate increase at 5%.
3. Scenario 3: Cap the maximum wholesale rate increase at 10%.
Subtask 1.2: Wholesale Customer Mayors/Administrators Meeting
Virtual attendance at a 2-hour Q&A session on July 1•' for the Mayors and Administrators from the
wholesale communities.
Subtask 1.3: City Council Presentation
In -person presentation at July 18'h City Council meeting.
Contract Price. Fees for this Change Order shall not exceed $12,758.00. The Contract Price, as set
forth in Section Project Fee of Agreement shall be increased to $136,568.00 from the current value of
$123,810.00.
Other Provisions. This Change Order, when executed by the Parties, constitutes a modification to the
Scope of Services to the Agreement, and all other provisions of the Agreement shall apply hereto and
shall continue in full force and effect in accordance with the provisions thereof on the date hereof.
(Signature Page Follows]
IN WITNESS WHEREOF, the parties have signed this Agreement as of the date signified below.
CITY OF FAYETTEVILLE, BLACK & VEATCH MANAGEMENT
ARKANSAS CONSULTING, L'LCCI
By: By:t�l.'6A.aL WP�Ot
Lioneld lordart Robert T. Wilhite
(Printed) (Punted)
Title: Mayor Title: Senior Vice President
Legal
PM
Ai
Approved
P=,-ce.vvr
Dale
Dale
Legal review not required per CP-4.08
(G. Klausner) 812612022G1-,
PM (A. White) 8/26/2022,AW