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HomeMy WebLinkAbout161-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 161-23 File Number: 2023-880 E SOURCE COMPANIES, LLC (SERVICE CONTRACT): A RESOLUTION TO APPROVE A PROFESSIONAL ENGINEERING SERVICES CONTRACT WITH E SOURCE COMPANIES, LLC FOR WATER LOSS INVESTIGATION SERVICES IN AN AMOUNT NOT TO EXCEED $95,000.00, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $10,000.00 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of City of Fayetteville, Arkansas hereby approves a professional engineering services contract with E Source Companies, LLC, a copy of which is attached to this Resolution, for water loss investigation services in an amount not to exceed $95,000.00, approves a project contingency of $10,000.00, and authorizes Mayor Jordan to sign this contract. PASSED and APPROVED on August 1, 2023 Page 1 Attest: 1-pZA ��r�� r ara Paxton, City Clerl Trcasurcr CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 1, 2023 CITY COUNCIL MEMO TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: SUBJECT: E Source Companies, LLC - Water Loss Investigation Services RECOMMENDATION: 2023-880 Staff recommends approval of an engineering services agreement with E Source Companies, LLC in an amount not to exceed $95,000.00 for Water Loss Investigation Services, and approval of a project contingency in the amount of $10,000.00. BACKGROUND: The City conducted an AWWA-M36 Water Audit in 2018 through consulting engineer Black & Veatch. One of the recommendations from this audit was to perform further analysis of data handling and billing. Specifically, a forensic analysis of billing system data involving a complete download of our database looking for anomalies, trends, or errors. DISCUSSION: This type of water loss is classified as "apparent loss" since it is not related to physical water being leaked. E Source Companies, LLC specializes in assisting water utilities track down apparent water losses. These errors may be associated with a variety of processes that support the billing system and the billing process. Further investigation will also be performed focusing on identifying Customer Metering Inaccuracies, Unauthorized Consumption, and source meter accuracy from Beaver Water District. The City has exhausted in-house abilities to assess these matters and looks forward to working with E Source to take a deeper look into water losses. E Source has helped several other local Arkansas utilities with similar needs, generating good reviews of their service. E Source was selected for these services through the City's engineering selection committee process on March 30, 2023 (RFQ 23-01, Selection #4). BUDGET/STAFF IMPACT: Funds are available in the Water System Rehabilitation/Replacement account within the Water & Sewer fund. ATTACHMENTS: SRF E Source Companies, LLC, E Source Companies, LLC Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2023-880 E Source Companies, LLC - Water Loss Investigation Services A RESOLUTION TO APPROVE A PROFESSIONAL ENGINEERING SERVICES CONTRACT WITH E SOURCE COMPANIES, LLC FOR WATER LOSS INVESTIGATION SERVICES IN AN AMOUNT NOT TO EXCEED $95,000.00, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $10,000.00 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of City of Fayetteville, Arkansas hereby approves a professional engineering services contract with E Source Companies, LLC, a copy of which is attached to this Resolution, for water loss investigation services in an amount not to exceed $95,000.00, approves a project contingency of $10,000.00, and authorizes Mayor Jordan to sign this contract. Page 1 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2023-880 Item ID 7/18/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/30/2023 WATER SEWER (720) Submitted Date Division / Department Action Recommendation: Staff recommends approval of an engineering services agreement with E Source Companies, LLC in an amount not to exceed $95,000.00 for Water Loss Investigation Services, and approval of a project contingency in the amount of $10,000.00. Budget Impact: 5400.720.5600-5314.00 Water and Sewer Account Number Fund 12009.1 Water System Rehabilitation/Replacement Project Number Budgeted Item? Yes Does item have a direct cost? Yes Is a Budget Adjustment attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: RFQ 23-01, Selection #4 Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 6,573,686.00 $ 1,835,802.76 4,737,883.24 $ 105,000.00 4,632,883.24 Previous Ordinance or Resolution # Approval Date: V20221130 AGREEMENT For PROFESSIONAL ENGINEERING SERVICES Between CITY OF FAYETTEVILLE, ARKANSAS And E SOURCE COMPANIES, LLC THIS AGREEMENT is made as of August 1 , 2023, by and between City of Fayetteville, Arkansas, acting by and through its Mayor (hereinafter called CITY OF FAYETTEVILLE) and E Source Companies, LLC (hereinafter called ENGINEER). CITY OF FAYETTEVILLE from time to time requires professional engineering services in connection with the evaluation, design, and/or construction supervision of capital improvement projects. Therefore, CITY OF FAYETTEVILLE and ENGINEER in consideration of their mutual covenants agree as follows: ENGINEER 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 ENGINEER'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- AUTHORIZATION OF SERVICES 1.1 Services on any assignment shall be undertaken only upon written Authorization of CITY OF FAYETTEVILLE and agreement of ENGINEER. 1.2 Assignments may include services described hereafter as Basic Services or as Additional Services of ENGINEER. 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 services in connection with the Project as hereinafter stated. 2.1.1 The Scope of Services to be furnished by ENGINEER during the Project is included in Appendix A attached hereto and made part of this Agreement. 2.2 ENGINEER shall coordinate their activities and services with the CITY OF FAYETTEVILLE. ENGINEER and CITY OF FAYETTEVILLE agree that ENGINEER has full responsibility for the engineering services. E-source Draft Contract RS Burks 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 ENGINEER. 3.1.1 Provide full information as to CITY OF FAYETTEVILLE's requirements for the Project. 3.1.2 Assist ENGINEER by placing at ENGINEER's disposal all available information pertinent to the assignment including previous reports and any other data relative thereto. 3.1.3 Assist ENGINEER in obtaining access to property reasonably necessary for ENGINEER to perform its services under this Agreement. 3.1.4 Examine all studies, reports, sketches, cost opinions, proposals, and other documents presented by ENGINEER and render in writing decisions pertaining thereto. 3.1.5 The Utilities Director is the CITY OF FAYETTEVILLE's project representative with respect to the services to be performed under this Agreement. The Utilities Director shall have complete authority to 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 and/or its representative will review all documents and provide written comments to ENGINEER 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. 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. ENGINEER 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. The anticipated schedule for this project is included as Appendix A. SECTION 5 - PAYMENTS TO ENGINEER 5.1 The maximum not -to -exceed amount authorized for this Agreement is $95,000.00. The CITY OF FAYETTEVILLE shall compensate ENGINEER based on a Lump Sum basis as described in Appendix A. 5.2 Statements 5.2.1 Monthly statements for each calendar month shall be submitted to CITY OF FAYETTEVILLE or such parties as CITY OF FAYETTEVILLE may designate for professional services consistent with ENGINEER'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 ENGINEER and approved by CITY OF FAYETTEVILLE. Applications for payment shall E Source Companies, LLC 2 be accompanied each month by the updated project schedule as the basis for determining the value earned as the work is accomplished. Final payment for professional services shall be made upon CITY OF FAYETTEVILLE's approval and acceptance with the satisfactory completion of the study and report for the Project. 5.3 Payments 5.3.1 All statements are payable upon receipt and due within thirty (30) days. If a portion of ENGINEER'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 ENGINEER 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. 5.4 Final Payment 5.4.1 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, ENGINEER 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 specifically exempted by ENGINEER 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 ENGINEER or his sureties under this Agreement or applicable performance and payment bonds, if any. SECTION 6 - GENERAL CONSIDERATIONS 6.1 Insurance 6.1.1 During the course of performance of these services, ENGINEER 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 E Source Companies, LLC ENGINEER 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. 6.1.2 CITY OF FAYETTEVILLE and ENGINEER waive all rights against each other and their officers, directors, agents, or employees for damage covered by property insurance during and after the completion of ENGINEER's services. 6.2 Professional Responsibility 6.2.1 ENGINEER will exercise reasonable skill, care, and diligence in the performance of ENGINEER's services and will carry out its responsibilities in accordance with customarily accepted professional engineering practices. CITY OF FAYETTEVILLE will promptly report to ENGINEER any defects or suspected defects in ENGINEER's services of which CITY OF FAYETTEVILLE becomes aware, so that ENGINEER can take measures to minimize the consequences of such a defect. CITY OF FAYETTEVILLE retains all remedies to recover for its damages caused by any negligence of ENGINEER. 6.3 Cost Opinions and Projections 6.3.1 Cost opinions and projections prepared by ENGINEER relating to construction costs and schedules, operation and maintenance costs, equipment characteristics and performance, and operating results are based on ENGINEER's experience, qualifications, and judgment as a design professional. Since ENGINEER 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, ENGINEER does not guarantee that actual rates, costs, performance, schedules, and related items will not vary from cost opinions and projections prepared by ENGINEER. 6.4 Changes 6.4.1 CITY OF FAYETTEVILLE shall have the right to make changes within the general scope of ENGINEER'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 ENGINEER. 6.5 Termination 6.5.1 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, 6.5.1.2 An opportunity for consultation with the terminating party prior to termination. E Source Companies, LLC 4 6.5.2 This Agreement may be terminated in whole or in part in writing by CITY OF FAYETTEVILLE for its convenience, provided that ENGINEER 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 on unperformed services or other work, 6.5.3.2 Any payment due to ENGINEER at the time of termination may be adjusted to cover any additional costs to CITY OF FAYETTEVILLE because of ENGINEER's default. 6.5.4 If termination for default is effected by ENGINEER, 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 ENGINEER for services rendered and expenses incurred prior to the termination, in addition to termination settlement costs reasonably incurred by ENGINEER relating to commitments which had become firm prior to the termination. 6.5.5 Upon receipt of a termination action under Paragraphs 6.5.1 or 6.5.2 above, ENGINEER 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 ENGINEER 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 over the work and may award another parry an agreement to complete the work under this Agreement. 6.5.7 If, after termination for failure of ENGINEER to fulfill contractual obligations, it is determined that ENGINEER 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 ENGINEER are suspended or delayed by CITY OF FAYETTEVILLE or by other events beyond ENGINEER's reasonable control, ENGINEER shall be entitled to additional compensation and time for reasonable costs incurred by ENGINEER in temporarily closing down or delaying the Project. E Source Companies, LLC 6.7 Rights and Benefits 6.7.1 ENGINEER'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 ENGINEER 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 ENGINEER 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. 6.8.3.2 For disputes arising within one year after the making of final payment, CITY OF FAYETTEVILLE shall give ENGINEER 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 ENGINEER 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 ENGINEER 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 ENGINEER for services rendered by ENGINEER. 6.10 Publications 6.10.1 Recognizing the importance of professional development on the part of ENGINEER's employees and the importance of ENGINEER's public relations, ENGINEER may prepare publications, such as technical papers, articles for periodicals, and press releases, pertaining to ENGINEER'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 ENGINEER CITY OF FAYETTEVILLE may require E Source Companies, LLC 6 deletion of proprietary data or confidential information from such publications, but otherwise CITY OF FAYETTEVILLE will not unreasonably withhold approval. The cost of ENGINEER's activities pertaining to any such publication shall be for ENGINEER'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 ENGINEER 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 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, CAD drawings, estimates, field notes, and project data are and remain the property of CITY OF FAYETTEVILLE. ENGINEER may retain reproduced copies of drawings and copies of other documents. 6.12.2 Engineering documents, computer models, drawings, specifications and other hard copy or electronic media prepared by ENGINEER as part of the Services shall become the property of CITY OF FAYETTEVILLE when ENGINEER has been compensated for all Services rendered, provided, however, that ENGINEER shall have the unrestricted right to their use. ENGINEER 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 ENGINEER. 6.12.3 Any files delivered in electronic medium may not work on systems and software different than those with which they were originally produced. ENGINEER 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. 6.13 Notices 6.13.1 Any Notice required under this Agreement will be in writing, addressed to the appropriate parry at the following addresses: CITY OF FAYETTEVILLE's address: 113 West Mountain Street Fayetteville, Arkansas 72701 E Source 3020 Carbon Pl. Ste. 300 Boulder, CO 80301 E Source Companies, LLC 7 6.14 Successor and Assigns 6.14.1 CITY OF FAYETTEVILLE and ENGINEER each binds himself and his successors, executors, administrators, and assigns to the other parry 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 ENGINEER 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 ENGINEER 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 ENGINEER a purchase order, no preprinted terms thereon shall become a part of this Agreement. Said purchase order document, whether or not signed by ENGINEER, shall be considered as a document for CITY OF FAYETTEVILLE's internal management of its operations. SECTION 7 - SPECIAL CONDITIONS 7.1 Additional Responsibilities of ENGINEER 7.1.1 CITY OF FAYETTEVILLE's review, approval, or acceptance of design drawings, specifications, reports and other services furnished hereunder shall not in any way relieve ENGINEER of responsibility for the technical adequacy of the work. Neither CITY OF FAYETTEVILLE'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 ENGINEER shall be and shall remain liable, in accordance with applicable law, for all damages to CITY OF FAYETTEVILLE caused by ENGINEER's negligent performance of any of the services furnished under this Agreement except for errors, omissions or other deficiencies to the extent attributable to CITY OF FAYETTEVILLE or CITY OF FAYETTEVILLE-furnished data. 7.1.3 ENGINEER's obligations under this clause are in addition to ENGINEER's other express or implied assurances under this Agreement or State law and in no way diminish any other rights that CITY OF FAYETTEVILLE may have against ENGINEER for faulty materials, equipment, or work. 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 ENGINEER arising E Source Companies, LLC 8 out of or relating to 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 ENGINEER shall maintain books, records, documents 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. ENGINEER shall also maintain the financial information and data used by ENGINEER 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 State 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. ENGINEER 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 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. 7.3.3 This right of access clause (with respect to financial records) applies to: 7.3.3.1 Negotiated prime agreements: 7.3.3.2 Negotiated change orders or agreement amendments in excess of $10,000 affecting the price of any formally advertised, competitively awarded, fixed price agreement: 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 ENGINEER; 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 ENGINEER 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 ENGINEER 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 E Source Companies, LLC 9 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 ENGINEER or any of ENGINEER'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 ENGINEER 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. 7.5.2 In the event this Agreement is terminated as provided in Paragraph 7.5.1, CITY OF FAYETTEVILLE may pursue the same remedies against ENGINEER as it could pursue in the event of a breach of the Agreement by ENGINEER 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 ENGINEER incurs in providing any such gratuities to any such officer or employee. 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 OF FAYETTEVILLE, ENGINEER 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. §25-19-101 et seq.). Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. IN WITNESS WHEREOF, CITY OF FAYETTEVILLE, ARKANSAS by and through its Mayor, and ENGINEER, by its authorized officer have made and executed this Agreement as of the day and year first above written. CITY OF FAY By/ M Y , Li nck ATTEST: By: W� V, City Clerk Y END OF AGREEM CAN AS E Source Companies, LLC 1..` ii — �����c.�K'', Reinhard Sturm, SVP E Source 7; C3 • ~ atthew Burks, CSO, E Source AL ENGINEERING SERVICES E Source Companies, LLC 10 j4d]V Proposal to: The 'City of Fayetteville May 4, 2023 Water Loss Technical Assistance E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AWWA WATER AUDIT —ADDITIONAL ANALYSIS Table of Contents Tableof Contents........................................................................................................................................... i FirmExperience............................................................................................................................................1 Proposed Scope of Services.......................................................................................................................... 3 Task 1: Customer Meter Reading Process Review & Data Analysis..............................................................3 Task 2: AWWA Water Audit Review & Compilation.....................................................................................4 Task 3: Pilot Leak Detection Design & Implementation................................................................................ 5 Task 4: District Metered Area Assessment & Planning.................................................................................5 Task 5: Source Metering Assessment...........................................................................................................4 ProjectTeam................................................................................................................................................. 7 Fee................................................................................................................................................................. 9 E Source POWERING WHAT'S NEXT 1-800-ESOURCE May 4, 2023 esource@esource.com www.esource.com 3020 Carbon PI., Ste 300, Boulder, CO 80301 Corey Granderson, Utilities Engineer City of Fayetteville 113 W. Mountain Fayetteville, AR 72701 RE: Water Loss Technical Assistance Dear Mr. Granderson, E Source Companies ("E Source"), the leading solver of problems facing electric, gas, and water utilities, is pleased to provide this proposal to the City of Fayetteville ("City" or "Fayetteville") for Water Loss Technical Assistance. E Source offers a broad portfolio of customer -first and technology -driven solutions to help utilities effectively manage the customer and infrastructure sides of their businesses reliably, efficiently, safely, and sustainably. Our guidance helps our clients make data -driven decisions to strengthen their customer relationships, plan for tomorrow's infrastructure needs, and further their sustainability goals while becoming more innovative and responsive in the rapidly evolving utility market. The E Source Water Loss Consulting (WLC) Team has worked with more than 100 utilities in the United States to compile and validate water audits, design water loss control strategies, conduct leak detection surveys and evaluate production meter accuracy. Our expertise reaches to every element of implementing water loss control programs. In most of our work, we move beyond water loss analysis to establish water loss control programs that save water and money. We are well versed in the benefits and challenges of designing and implementing meter accuracy maintenance programs. We have extensive experience in both designing informative meter testing programs and in appreciating the implications of meter accuracy for water loss control. Our experience is outlined in the proposal that follows; we hope it demonstrates our commitment to enabling water utilities to better understand and manage water losses. We appreciate the opportunity to submit this proposal and thank you in advance for your consideration of our capabilities. We will be pleased to provide any further information and hope to hear from you soon. Sincerely, Reinhard Sturm, Senior Vice President Water Loss Consulting 786-877-5752 Reinhard—Sturm@esource.com Kody Salem, Senior Vice President Solution Services Business Development 615-375-6396 kody_salem@esource.com E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AWWA WATER AUDIT—ADDITIONALANALYSIS Firm Experience From primary research, consulting, and operational data systems selection and implementation expertise to breakthrough predictive data science services and Al applications, E Source enables energy and water utilities to collect, enhance, and use data to transform their operations and solve their sustainability, safety, reliability, equity, and cost challenges. With hundreds of clients, a 35-year focus exclusively on utilities, and a growing arsenal of data -driven solutions, E Source brings to each engagement an unrivaled understanding of what works and how to implement it, increasing speed to value. The E Source Solution Services Division provides a range of services, from water loss audits and water management control programs to data analytics, feasibility studies, strategic plans, business cases, vendor selections, and all phases of the system implementation life cycle. We offer significant innovation, expertise, and experience to our customers. E Source WLC's water loss expertise has been recognized by many industry stakeholders, including the American Water Works Association (AWWA) and the Water Research Foundation (WEF), as well as dozens of water utility managers nationwide. For nearly 20 years, utilities and professional drinking water associations have looked to E Source WLC to define best practices for water loss analysis, control, and management; as well as implementation of proven interventions against water loss; pioneering new methodologies; and galvanizing regional cooperation. Our unique blend of utility operational technology consulting expertise coupled with industry -leading non -revenue water management proficiency is unmatched by any other firm —and ideally suited for the City's project. Research institutes and professional drinking water associations overwhelmingly select us to review industry standards, evaluate the integration of new technologies with water loss management, and propose cutting - edge analysis and field studies that support distribution system efficiency. ) The North American Industr 19, Taught 25000 drinking water professionals about best -practice water loss analysis and control methodology Performed or validated 400+ water audits to the level-1 standard and dozens more beyond Staff average 10 years of water loss consulting experience Advised regulatory & water management agencies in states, plus Puerto Rico, Guam, and the EPA, both nationally and regionally Led 65+ comprehensive non -revenue water programs for water utilities nationwide AWWA committees at the national & state level Figure 1. E Source Water Consulting's Metrics Demonstrate Our Expertise E Developed E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AW WA WATER AUDIT—ADDITIONAL ANALYSIS Our Water Research Foundation publications have been recognized as definitive guides to water loss management. Notably, the AWWA recommends that utilities employ our Real Loss Component Analysis model when developing water loss control programs. As shown in Figure 1 of the previous page, we are the North American industry leader in Water Loss Management. We have worked with more than 100 utilities nationwide to compile and validate detailed water audits. With most of these partners, our work has moved beyond water loss analysis to establish water loss control programs that save water and money. In each of these projects, we established a nuanced understanding of each system's unique water loss profile, gained an appreciation for the strengths and uncertainties of each utility's data sources, and developed customized action plans that concretely improve system management and financial viability. In addition to developing comprehensive water loss control strategies, we also have a great deal of experience implementing these strategies to reduce water loss. Our recommendations are always informed by a detailed review of our clients' unique circumstances, characteristics, practices, and culture. Our water loss management expertise includes supporting pioneer ground -breaking water loss control programs, such as the California Water Loss Technical Assistance Program (Water Loss TAP), where we led the largest water audit training and validation program ever offered —teaching best -practice methods and performing level 1 water audit validations for all 450 retail urban water suppliers in California. Our expertise also includes developing proprietary water loss analysis tools and applications, including Leak Scenario Builder, our multi -agent simulation to systematically explore leakage control strategies for water distribution systems. Our modeling approach provides actionable recommendations to conserve water and save money while acknowledging uncertainty. We calibrate the leak scenario builder with system -specific data to provide insight into three core elements of leakage management: estimating impact on loss rates, anticipating required level of effort, and evaluating cost effectiveness. Our mission is to ensure a high -quality delivery that meets your needs, budget, and schedule. We are extremely proud of our capabilities and are 100% confident we can achieve the City's goals. We work as an extension of your staff —our philosophy in providing services for our clients is to work side -by -side with your team, providing the needed expertise and experience to achieve project success. E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AW WA WATER AUDIT—ADDITIONAL ANALYSIS Proposed Scope of Services The City of Fayetteville has identified an increasing trend in water losses over time and has engaged E Source to identify the most cost-effective recovery opportunities. The tasks described below were developed by E Source based on initial discussion with City staff and can be modified to meet the City's expectations and needs. At the time of writing the City plans to engage in tasks 1 through 3, with tasks 4 and 5 reserved for potential future work. Task 1: Customer Meter Reading Process Review & Data Analysis E Source proposes to analyze underlying customer meter reading and billing data to assess how the meter reading to bill process is implemented in practice and look for evidence of water losses. This analysis intends to assess the integrity of raw billing data and to evaluate how consistently billing best practices are applied before summarizing usage volumes for water loss assessments. Analyses include but are not limited to: • Duplicate, negative, and large suspicious use volumes • Comparing raw totalizer reads to listed consumption volumes • Assessments of data completeness such as the count of records per meter and per month • Prevalence and impact of adjustments and estimates • Identification of likely stuck meters • Identification of consumption patterns that may indicate metering inaccuracy, meter multiplier inconsistencies, or meter reading unit inconsistencies. • Selection of customer meters for volumetric testing • Meter right -sizing evaluation including comparison to similar results from past E Source analyses with other agencies. • Prorating customer meter use to better approximate the volume and timing of use to align with production meter readings for water loss analysis. • Final derivation of billed metered authorized consumption for the water audit. Outcomes - A comprehensive report documenting all significant errors and anomalies found in the underlying billing and meter reading data sets analyzed. - Lists of customer meters for targeted testing or other maintenance activities. - Data sets identifying anomalous records detected through detailed analysis. E E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AWWA WATER AUDIT —ADDITIONAL ANALYSIS Task 2: AWWA Water Audit Review & Compilation E Source will review past water audit results to gain important system context and then compile an updated water audit for a recent calendar or fiscal year. The compilation process includes derivation of all audit inputs based on data provided by the City. Outcomes: A compiled AWWA water audit in version 6 of the free water audit software. E Source will also provide a summary of known methodological differences from prior water audits. 2. Documentation of data sources used to inform water audit inputs to facilitate future audit compilation by the City. Task 3: Source Metering Assessment E Source will review and analyze historical source meter flow data and accuracy assessments where available, in addition to visiting source metering sites as needed. Source meters record the volume of water supplied into the distribution system, and real loss is derived by subtracting authorized use and apparent loss from water supplied. Therefore, all real loss performance indicators, and therefore real loss intervention strategies based on those indicators, are dependent on the accuracy of source meters. Outcomes: 1. Previous source meter testing and calibration review: E Source will review the protocols and documentation related to source meter testing and calibration practices employed at each source metering site (own source, import meter and export meter). E Source will also analyze any available source meter calibration and testing documentation for the last three years. 2. Development of source meter testing approaches: E Source's review will focus on identifying appropriate testing methodologies for source metering sites. Where the current set up does not allow for meter tests to be conducted, E Source will provide recommendations to make these meters testable. This task can include an initial inspection site visit to inspect meter settings. 3. High frequency flow analysis (source meters): E Source will analyze production data for the City's source meters at the highest temporal resolution available to identify potential data gaps, the appropriate testing flow rates, and the proportion of flow recorded outside each meter's designed specifications. E Source will then compare archived flow data with summary volumes and derive the entries for water supplied in the water audit. E E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AW WA WATER AUDIT—ADDITIONAL ANALYSIS For Future Work: Tasks 4 and 5 described below are reserved for potential future work. Task 4: Pilot Leak Detection Design & Implementation E Source proposes to survey a representative cross section of the City's distribution system covering about 30% of the miles of mains (-250 miles) and then reporting on the findings. Pilot leak detection results can be used to estimate how significant real losses are in the system and to decide if further survey is warranted. E Source's leak detection technicians listen to every accessible appurtenance for leak noise including service connections, hydrants, and valves, for example. Outcomes: 1. Leak detection survey plan documenting the representative areas for the survey and selection methodology. Factors that could be considered include the main and service line materials, where known, in addition to the density of development, among others. 2. Individual leak reports showing where E Source technicians detected suspicious noise that may indicate a leak. Suspected leak noise can be confirmed with City staff before deciding to dig to attempt a repair. 3. Report on leak detection findings including recommendations for additional survey if pilot results justify it. Task 5: District Metered Area Assessment & Planning E Source will analyze available system data, including GIS data where available, in addition to discussions with City staff, to identify candidate areas for developing district metered areas (DMAs). DMAs are hydraulically discrete portions of the distribution system with metered inlets and outlets such that the volume of authorized use inside the zone boundaries can be compared with the net volume of supply into the area. By comparing use with supply, functioning DMA's allow system managers to deploy water loss recovery efforts to specific areas strategically when losses exceed a predetermined threshold. This task would help the City to plan for DMA implementation and position E Source to assist with that implementation and monitoring in the future should that be of interest. Outcomes: 1. A report identifying candidate areas to develop district metered areas (DMAs) including zone statistics such as the number of boundary sites (inlets & outlets), miles of main, and count of service connections based on available data. 2. A DMA implementation plan documenting the general steps and considerations for establishing DMAs based on E Sources extensive experience. E E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AW WA WATER AUDIT—ADDITIONAL ANALYSIS E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AW WA WATER AUDIT—ADDITIONALANALYSIS Project Team E Source aims to provide the right team of focused experts on each project we pursue —highly skilled senior consultants, comprised of experts in their fields who understand the unique drivers, responsibilities, and needs of our clients. We have assembled a team of consulting experts with the directly relevant experience needed for project success. CITY OF FAYETTEVILLE ARKANSAS Project Team Qualification: The following information provides highlights of each team member's qualifications to support this project. Resumes for each are provided as Appendix A of this proposal. In addition to the identified project team, we have several other on -demand resources and support staff who are available if and as needed. / , ' • • .• • 7+ years of water loss consulting experience, including managing all aspects of water loss control program development; 7+ years of experience with WSO (acquired by E Source in 2021); currently serves as Director of Water Loss Consulting Developed and implemented multi -year programs in partnership with water utility clients —from initial proposal to project hand-off Expertise includes applying statistics; cleaning and analyzing data; developing program tools to process client data efficiently and consistently; and coordinating, executing, and reporting on extensive field data collection projects (including leak detection, comprehensive pressure surveys, source meter testing, and customer meter flow profiling) Served in same role for the City of Bentonville, City of Fountain Valley, Moulton Niguel Water District, Coachella Valley Water District, and the East Bay Municipal District among others Authored technical reports ranging from customer meter management strategies to comprehensive water loss control master plans for both small and large water utilities E E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AWWA WATER AUDIT—ADDITIONAL ANALYSIS 20+ years of water loss consulting experience Served as Water Loss SME supporting water loss audit, prevention, and control programs for 50+ utility clients 19 years of experience with WSO (acquired by E Source in 2021); currently serves as Senior Vice President, TPI Water Loss Consulting Frequent speaker at AWWA and WEF conferences on water loss management; co-authored Water Loss Control (2nd Ed.) and published 20+ papers on various water loss topics Served in same role for Moulton Niguel Water District (reference project 2), Coachella Valley Water District (reference project 3), and the East Bay Municipal District (reference project 4) among others 30+ years of water utility experience; 7+ years of experience with E Source (Director, Water Operations) Experience includes 19 years as Utilities Director at the City of Topeka, where he gained extensive experience investigating and resolving water loss Expertise includes defining, developing and directing multiple water loss initiatives, including development of reporting tools that extracted information from a SunGard HTE billing application to identify billing failures due to new account additions, rate misapplication to accounts, High/Low reporting failures, off cycle billing escapes, misapplication of cancel / rebill for sewer adjustments, aged payment processing, and identification of accounts where a single customer had outstanding debt. Served as Water AMI Meter and Operations SME supporting utility IT and OT systems planning, acquisition, implementation and integration projects involving AMI, MDMS, data analytics, and related technologies for 30+ utility clients, including Long Beach Water (reference project 5) and WaterOne (reference project 6) Frequent speaker at AWWA and WEF conferences on AMI reporting, asset management, cost reduction, and leadership practices 8 years of experience in utility assessment, business case, and procurement for smart metering and associated systems and services related to technology planning and implementation. Analytics expertise with metering data to assist with utility planning and enhanced asset utilization/optimization. Technology expertise includes AMI, MDMS, and Customer Engagement Portal (CEP), as well as procurement support for outage management systems and meter installation vendor (MIV) services. E SOURCE PROPOSAL TO CITY OF FAYETTEVILLE FOR AW WA WATER AUDIT—ADDITIONAL ANALYSIS E Source proposes to perform tasks 1, 2, and 3 as detailed in this proposal for a fee of $95,000. Tasks 4 and 5 are reserved for potential future work. The breakdown of this fee by task is shown in the table below. Task 1: Customer Meter Reading Process Review & Data Analysis $70 Task 2: AWWA Water Audit Review & Compilation Task 3: Source Metering Assessment Task 4: Pilot Leak Detection Desian & Implementation (-250 miles of main Task 5: District Metered Area Assessment & Plannin Total Tasks 1-3 $10,000 $100,000 $35,000 $95,000 E Source has calculated the proposed fee based on experience completing several similar projects. Our fee includes all services and deliverables described herein. E Source can adjust the scope of work to provide support to match the needs of the City. Reimbursable Expense, Reimbursable expenses (e.g., travel, incidentals, etc.) are not included and will be submitted monthly for reimbursement on an actual and reasonable basis. There is no markup on these direct costs, and E Source does not charge for time spent traveling. We will seek to minimize expenses through the use of government contractor rates, if available, and teleconferences whenever possible. ssumations The following assumptions apply to this proposal: E Source's proposed fee to implement this Scope of Work is based on the timely start and timely completion of each proposed task as outlined in the project schedule provided herein. If an unforeseen delay in any proposed task(s) impacts the level of effort identified or exceeds the duration outlined in the proposed schedule, E Source reserves the right to develop a change order applicable to the additional services / level of effort required to complete the impacted task(s). These rates and estimates are exclusive of taxes. Any required state, city, or local government taxes, fees, or business licenses costs will be invoiced at actual cost incurred. The City will provide E Source with working space, network connections, infrastructure, administrative support, and other services and materials reasonably required to perform project work while onsite at City offices, if requested. Payment Terms Payment terms are net thirty (30) days unless otherwise agreed upon. E Source reserves the right to charge one and one-half (1.5%) percent per month, or the maximum rate permitted by law, if less than 1.5%, on any balance remaining unpaid after thirty (30) days. rroposa► terms ana uonctmons Terms of this proposal remain valid for 90 days from date of submittal. E Source reserves the right to negotiate any terms and conditions of the written agreement relating to this SOW with the City. E Non -Disclosure Agreement E Source Companies, LLC Tim Nyander Submitted By City of Fayetteville Staff Review Form City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 10/16/2023 WATER SEWER (720) Submitted Date Division / Department Action Recommendation: Staff recommends approval of and the Mayor's signature on a Non -Disclosure Agreement with E Source Companies, LLC. Budget Impact: N/A N/A Account Number N/A Project Number Budgeted Item? No Total Amended Budget Expenses (Actual+Encum) Available Budget Does item have a direct cost? No Item Cost Is a Budget Adjustment attached? No Budget Adjustment Remaining Budget Fund N/A Project Title $ V20221130 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: 10/19/2023 CITY OF FAYETTEVILLE ARKANSAS TO: Mayor Lioneld Jordan THRU: Susan Norton, Chief of Staff Tim Nyander, Utilities Director FROM: Corey Granderson, Utilities Engineer DATE: October 16, 2023 SUBJECT: Non Disclosure Agreement with E Source Companies, LLC STAFF MEMO RECOMMENDATION: Staff recommends approval of and the Mayor's signature on a Non -Disclosure Agreement with E Source Companies, LLC. BACKGROUND: The City Council approved a professional services contract with E Source Companies on August 1, 2023 (Res. 161-23) for water audit services to investigate water loss. After project kickoff and process overviews, it was determined that the data requests needed by E Source to perform their scope would need to be accompanied by a Non -Disclosure Agreement so that the City can remain compliant with our legal obligations to protect customer information. DISCUSSION: The IT Department and City Attorney's office collaborated to create the Non -Disclosure agreement which will supplement the existing professional services contract and allow the data transfer and analysis of our billing data to occur. This will allow E Source to complete their tasks and scope related to water loss. BUDGET/STAFF IMPACT: No budget impact. Attachments: Non -Disclosure Agreement Resolution 161-23 Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 10 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 161-23 File Number: 2023-880 E SOURCE COMPANIES, LLC (SERVICE CONTRACT) A RESOLUTION TO APPROVE A PROFESSIONAL ENGINEERING SERVICES CONTRACT WITH E SOURCE COMPANIES, LLC FOR WATER LOSS INVESTIGATION SERVICES IN AN AMOUNT NOT TO EXCEED $95,000.00, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $10,000.00 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of City of Fayetteville, Arkansas hereby approves a professional engineering services contract with E Source Companies, LLC, a copy of which is attached to this Resolution, for water loss investigation services in an amount not to exceed $95,000.00, approves a project contingency of $10,000.00, and authorizes Mayor Jordan to sign this contract. PASSED and APPROVED on August I, 2023 Page 1 NON -DISCLOSURE AGREEMENT BETWEEN E SOURCE COMPANIES, LLC AND THE CITY OF FAYETTEVILLE, AR Whereas, the City of Fayetteville, Arkansas ("City"), with municipal offices at 113 W Mountain St, Fayetteville, AR 72701, is the owner of certain confidential information relating to its technology systems (collectively referred to as "Confidential Information"). Whereas, E Source Companies, LLC (referred to as "Vendor") is desirous of receiving, reviewing, and/or evaluating the Confidential Information for the sole and exclusive purpose of providing services related to the City's Utility Billing Water Audit. Now, therefore, it is hereby agreed: That the City shall authorize disclosure to the Vendor some or all of the Confidential Information based on the Vendor's requirement to provide consulting services related to the audit of Water Utility Billing. This may include, but is not limited to, location and configuration information related to city's network infrastructure, meter reading systems, utility billings systems, and related network equipment and technology systems. That the Vendor shall hold and use Confidential Information only for the above -stated purpose of this Agreement and shall restrict disclosure of such Confidential Information to its employees with a need to know. The Vendor shall protect the Confidential Information received by using the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized use, dissemination, or publication of the Confidential Information as the Vendor uses to protect its own confidential information of a like nature. The Vendor shall be responsible for compliance with this Agreement by its Representatives (The Vendor's employees and employees of the third parties engaged by it) who receive Confidential Information from the CITY or the Vendor on a need to know basis provided such persons agree in writing to protect such information in accordance with this Agreement. That the Vendor will hold the Confidential Information or any part thereof in strict confidence and will not permit any disclosure thereof to any person or persons outside its organization and not use or derive any direct or indirect benefit from the Confidential Information or any part thereof without prior written consent of the City. The Vendor agrees that it will not disseminate in any manner any part of the Confidential Information. That the Vendor will not make or authorize to be made any copies of any data authorized to be released by the City and showing or describing or embodying the Confidential Information except carrying out its duties with the City. That the restrictions on the use or disclosure of Confidential Information by the Vendor shall not include any information which: 1. at the time of disclosure to the Vendor was known to the Vendor to be free of restriction and such previous knowledge is evidenced by documentation in the possession of the Vendor, copies of which will be provided to the City if requested; 2. is publicly known or later made publicly known by the City; 3. is evidenced by documentation in the possession of the Vendor as being received from a third party to this Agreement who: (a) has the legal right to so furnish such information to the Vendor, and (b) is not obligated to the City to keep such information confidential; or is approved for release in writing by the City; or 4. is required to be disclosed by federal, state or local law and regulations including but not limited to the Arkansas Freedom of Information Act, however, the information shall not be disclosed prior to City being notified in writing of such request for disclosure and the opportunity for the City to oppose such disclosure as allowed by law. That nothing in this Agreement shall be construed as conferring to the Vendor any right of ownership in the Confidential Information or license to use any patents, industrial designs, copyrights or other intellectual property rights owned or licensed by the City. That nothing in this Agreement shall be construed as restricting the City's right to restrain use or dissemination of the Confidential Information in accordance with applicable federal, state or local law and regulation. The Vendor acknowledges that a breach by it or any of its employees, agents, officials or officers of the provisions of this Agreement will cause the City irreparable damage for which the City cannot be reasonably or adequately compensated in damages. The City shall therefore be entitled, in addition to all other remedies available to it including, but not limited to, attorney fees and costs, to injunctive and/or other equitable relief to prevent a breach of this Agreement, or any part of it, and to secure its enforcement. This Agreement shall be construed in accordance with the laws of the State of Arkansas. This Agreement and any amendments hereto may be executed by facsimile signature and in any number of counterparts, all of which taken together shall constitute one and the same instrument. City of Fartteville, Arkansas E Source Companies, LLC e B By: } Lioneld Jordan, ayor Name: Reinhard Sturm Title: SVP Date: 10/19 23 Date:10-16-2023