HomeMy WebLinkAboutResolution - 2005-R0022 - Amendment Of Contract - Malcolm Pimie, Inc. - 01_13_2005Resolution No. 2005-R0022
January 13, 2005
Item No. 13
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, an Amendment of Contract,
between the City of Lubbock and Malcolm Pirnie, Inc., amending that certain Contract
dated on or about February 19, 2004, regarding the scope of services and costs associated
with the Water and Sewer Rate Study. Said Amendment of Contract is attached hereto
and incorporated in this Resolution as if fully set forth herein and shall be included in the
minutes of the Council.
Passed by the City Council this 13th day of January 2005.
X ".-/(
ARC McDOUISAL, MAYOR
ATTEST:
Re cca Garza, City Secretary
APPROVED AS TO CONTENT:
Sherry Stephens, Water Programs Manager
APPROVED AS TO FORM:
Richard K. Casner, First Assistant City Attorney
gs/ccdocs/Res. Amend Contract-ProfServs-Malcolm Pimie
Jan. 7, 2005
Resolution No. 2005-R0022
January 13, 2005
Amendment of Contract Item No. 13
This Amendment of Contract ("Amendment") is entered into this 13a' day of January,
2005, by and between the City of Lubbock, Texas (the "City"), a Texas home rule
municipal corporation and Malcolm Pirnie, Inc. ("Contractor"), a New York corporation.
Witnesseth
WHEREAS, Rick Giardina & Associates, Inc. ("Giardina") and the City entered into that
certain Contract dated on or about February 19, 2004 (the "Original Contract"),
Resolution No. 2004-R0102, providing for the provision of professional services to the
City, as more fully described therein;
WHEREAS, Giardina assigned the Original Contract to Malcolm Pirnie, Inc. by
Assignment of Contract dated effective December 1, 2004.
WHEREAS, the City consented to such assignment as evidenced by its Resolution dated
the 13`h day of January, 2005;
WHEREAS, the City now desires that Contractor perform additional services under the
Original Contract;
WHEREAS, Contractor desires additional compensation for such additional services; and
WHEREAS, the City and Contractor now desire to amend the Original Contract to so
provide.
NOW THEREFORE, for good and valuable consideration, the City and Contractor
hereby amend the Original Contract as follows:
1. Article 1. Statement of Work is deleted in its entirety and replaced with the
following:
Article 1. Statement of Work
A. Contractor shall provide professional services to the City as more fully
described in Attachment A — Scope of Work and Attachment D —
Additional Scope of Work. The Contractor's services shall include those
services that are identified by the City.
B. The draft Executive report will be delivered to the City no later than
March 15, 2005. Within fifteen (15) days of receiving the City's
comments on the draft report, Contractor will deliver the final report to the
City.
Amendment of Contract - Page 1 of 4
C. Contractor will provide training to City staff on the use of financial
models developed by Contractor for the water and sewer utilities. This
training will involve one trip to Lubbock by Contractor on January 25 and
26, 2005, or other dates as agreed to by City, and shall include training
session(s) conducted by Contractor on the afternoon of January 25`h and
the morning of January 26`h. Contractor shall provide training to a
maximum of five (5) City staff during each of the above -described
sessions to completely update the financial models for a new fiscal year,
inform the attendees on how to develop scenarios with different bond
issuance sizes and timing, and how to model different annual rate
adjustments and their impact on various reserves maintained in each
applicable fund.
2. Article 2. Compensation is deleted in its entirety and replaced with the following:
Article 2. Compensation
The Contract amount for the services provided for in Article 1. shall not exceed
one hundred fifty-one thousand, eight hundred and seventy-five dollars
($151,875), as more fully described in Attachment C — Fee Schedule. This
amount includes all expenses incurred by Contractor.
3. Article 4. Term and Termination is deleted in its entirety and replaced with the
following:
Article 4. Term and Termination
The term of this Contract shall be for a period expiring December 31, 2005.
Contractor or the City may terminate this Agreement at any time. Contractor will
be paid for all time and expenses incurred as of the termination date. Further
renewals of this Agreement are at the option of the parties hereto. The provisions
of Article 8 shall survive termination or expiration hereof.
4. Page 1 of Attachment C — Fee Schedule, shall be deleted in its entirety and
replaced with Page 1 of Attachment C — Fee Schedule, as attached to this
Amendment of Contract.
5. The Contract is amended by adding Attachment D — Additional Scope of Work,
as attached hereto.
6. The Contract, except as expressly amended hereby, shall remain in force and
effect as originally provided.
Amendment of Contract - Page 2 of 4
MALCOLM PIRNIE, INC.
By
1 C4 0 )q / L
Richard D. Giardina, Vice President
Lu
ATTEST:
Re ecca Garza
City Secretary
APPROVED AS TO CONTENT:
Sherry Stephens
Water Programs Manager
APPROVED AS TO FORM:
Richard K. asner
First Assistant City Attorney
CITY OF LUBBOCK
Amendment of Contract - Page 3 of 4
Resolution No. 2005-R0022
January 13, 2005
Item No. 13
Attachment C
The not -to -exceed cost for the services contemplated by this Contract, as amended by the
Amendment to Contract, is one hundred fifty-one thousand, eight hundred and seventy-
five dollars ($151,875). The not -to -exceed cost is based on the scope of services
described in Article 1. Statement of Work and the hourly rates as listed below:
Richard Giardina $225 per hour
Joel Theis $180 per hour
Kevin Burnett $145 per hour
Andrew Rheem $125 per hour
Administration $ 65 per hour
These rates will remain in effect for the duration of this Contract, as amended by the
Amendment to Contract. Contractor's rates may be increased for services requested by
the City after the expiration of this Contract, as amended by the Amendment to Contract.
In no event shall the charge to the City for the services described in Article 1. Statement
of Work exceed one hundred fifty-one thousand, eight hundred and seventy-five dollars
($151,875).
CITYATT/RICHARD/Amendment of Contract — Pimic
01/05/2005
Amendment of Contract - Page 4 of 4
Resolution No. 2005-R0022
nt
WATER RATE STUDY
ATTACHMENT D - ADDITIONAL SCOPE OF WORK
Red Oak Consulting (Red Oak) has outlined the tasks below
necessary for developing and evaluating alternative rate structures for
the City of Lubbock that have a pricing incentive for conservation or
water efficiency. These tasks are based on using the cost of service
analysis completed as part of the recent rate study completed by Rick
Giardina & Associates, Inc. (RGA), and updating the revenue
requirements to reflect the latest budget for FY2005-06.
As a result of the RGA Rate Study, a uniform rate structure was
recommended until the billing software could be updated for
administering the average winter consumption (AWC) rate structure
recommended for implementation by the Lubbock Water Advisory
Committee (LWAC). The uniform rate structure included a lower
monthly Base Charge than currently implemented, allowing for a
higher volume rate. The higher volume rate would shift some of the
billing revenue currently collected through the Base Charge to the
higher volume usage customers, and provide an incentive to use less
water in order to reduce their water bills. The purpose of this water
rate update is to update the recommended uniform rate structure using
the most recent budget for 2005-06, and comparing it to an inverted
(inclining) block rate structure for implementation during FY 2005-06.
Task 1: Project Initiation
The kick-off meeting will involve a meeting with the City Staff to
discuss and clarify the objectives, schedules, and the status reporting
for of this project. Suggested topics for discussion and consideration in
designing the rates include the type of rate structure for each rate class,
costs included in the monthly Base Charge, working capital and rate
stabilization reserve targets, capital fund utilization, and the bond
issuance timing, size, and financing parameters.
M747301
NCA
Rate Study
Objectives
- Price Incentive for
Conservation
- Adjust Rates to Meet
Revenue
Requirements
Task 1
Deliverables
- Kick-off Meeting,
Study Objectives, and
Schedule
City of Lubbock .', - RED' `' PAGE
Water Rate Study �".�' 1-1
PATHWAYS TO LASTING SOLUTIONS
Task 2: Revenue Requirements and Cost of Service Update
Using the most recently approved budgets, Red Oak will develop
the revenue requirements within the existing framework used for the
recently completed rate study. This will only involve updating the cost
of service model developed by RGA with new revenue requirements
using the current budget for FY 2005-06.
As part of this update, Red Oak will review the water utility budget
with Staff and include any modifications to the capital improvement
plan in the financial model. The new budget will be used to update the
water financial model and as a basis for reviewing potential revenue
outcomes under the new surcharges.
Task 3: Conservation/Efficiency Rate Development
Red Oak will develop the rate design model for each rate class and
develop rates using the revenue requirements by class as determined in
Task 2.
Another step in this task will be to develop a bill impact analysis of
each rate alternative for each rate class. Comparisons will be made to
the current rate structure updated for the revenue increase needed to
meet revenue requirements as determined in Task 2. Thus, each rate
structure compared will be designed to recover the same amount of
revenue. These rate comparisons will be presented to the LWAC and
Staff for discussion prior to decide upon the final rate structures that
will be recommended to City Council.
Task 4: Report Preparation and Public Presentations
Red Oak will develop one of the final reporting documents:
1) A draft report (5 copies), and a Final report (15 copies). The
report will include an executive summary, full explanations
of the data used, the cost of service methodology, the rate
design development, and bill impact comparisons.
SCOPE OF WORK
Task 2
Deliverables
- Revenue
Requirements for
Each Rate Class
- Cost of Service
Update
Task 3
Deliverables
- Rate Design
Alternatives for Each
Rate Class
- Bill Impact
Comparisons
- Meeting with LWAC
to Review Results
Task 4
Deliverables
- Final Report or
Executive Overview
- Formal Presentation
to City Council
M747301 Ciry of Lubbock RED),\,;',, PAGE
NCA Water Rate Study . ,, ...,SL .._ 1.<......
PATHWAYS TO LAST/NGSOLUT/ONS
SCOPE OF WORK
2) An executive overview document (15 copies) providing a
summary of the budget expenditures and items that comprise
the revenue requirements used to develop the water rates.
This will include a summary of all rates and a brief discussion
of the rate development approach, and the study process.
At a minimum, each of the above will include:
❑ Schedule of proposed rates and fees.
❑ A discussion of the approach to developing the rate alternatives and the
supporting rationale.
❑ A discussion of significant issues and how they were addressed in the
study.
❑ Rate comparisons of the alternative rate designs for each customer
class.
Red Oak will deliver the final report within 15 days of receiving
comments on the draft report.
Red Oak will make a formal presentation of the results to City
Council within two weeks after a date is scheduled at the City's
convenience.
M747301 Ciry of Lubbock ,6 a CON C(.'LTI \C. PAGE
NCA Water Rate Study
PATHWAYS TO LAST/NG SOL UT/ONS