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HomeMy WebLinkAboutResolution - 2006-R0412 - Professional Services Agreement - Parkhill, Smith & Cooper, Inc. - 08/24/2006Resolution No. 2006-RO412 August 24, 2006 Item No. 6.11 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, a Professional Services Agreement by and between the City of Lubbock and Parkhill, Smith & Cooper, Inc., and all related documents. Said Professional Services Agreement 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 24th day of August 2006. Ar .► 7-3%0;We- / .• �.•ILLER, MAYOR ATTEST: becca Ga a, City Secretary APPROVED AS TO CONTENT: ty 7 Richard K. Casner, First Assistant City ttorney ml/ccdocs/PSC-LAH Preliminary Engineering.res August 18, 2006 Resolution No. 2006-RO412 August 24, 2006 Item No. 6.11 PROFESSIONAL SERVICES AGREEMENT This Professional Services Agreement ("Agreement") is entered into this 24th day of August , 2006, by and between the City of Lubbock (the "City"), a Texas home rule municipal corporation, and Parkhill, Smith & Cooper, Inc. (the "Engineer"), a professional engineering corporation. WITNESSETH WHEREAS, Engineer has substantial skill and experience in the planning and design of water supply, conveyance and treatment facilities, and such planning services are needed in the Preliminary Engineering Phase of the development of the Lake Alan Henry Water Transmission Pipeline, Pump Stations, Water Treatment Facility and Related Projects as outlined in RFQ # 06-712-BM dated July 2006 (the "Activities"); WHEREAS, the City desires to contract with Engineer to perform services related to the Activities and Engineer desires to provide the services related to same. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and Engineer agree as follows: ARTICLE I Services 1.01 Engineer shall conduct all activities and within such time frames, as set forth on Exhibit "A", "Scope of Services", attached hereto (the "Services"). ARTICLE II Compensation and Term 2.01 The consideration to be paid for the Services to be provided the City as described in Article I shall be on a lump sum basis. The lump sum due and payable to Engineer shall be $525,000. This amount shall be invoiced to the City monthly as work is performed and as further described on Exhibit `B", "Payments to Engineer", attached hereto. 2.02 This Agreement shall expire on January 1, 2008, contingent upon issuance of Notice to Proceed by September 15, 2006; if the Notice of Proceed is provided after September 15, 2006, the expiration date shall be extended a like number of days. Additionally, the City may terminate this Agreement by providing written notice to Engineer at least thirty (30) days prior to the effective date of termination as provided in such notice. In the event this Agreement is so terminated, the City shall pay Engineer only for services actually performed by Engineer up to and including the date the Engineer is deemed to have received the City's notice of termination. ARTICLE III Independent Contractor 3.01 It is understood and agreed that Engineer is to perform the Services in a sound and professional manner and exercising the degree of care, skill and diligence in the performance of the Services as is exercised by a professional engineer under similar circumstances and Engineer hereby warrants to the City that the Services shall be so performed. Further, Engineer is and shall be considered at all times an independent contractor under this Agreement and/or in its service, hereunder. -2- 4.01 During the performance of the Services under this Agreement, Engineer and Engineer's employees will not be considered, for any purpose, employees or agents of the City within the meaning or the application of any federal, state or local law or regulation, including without limitation, laws, rules or regulations regarding or related to unemployment insurance, old age benefits, workers compensation, labor, personal injury or taxes of any kind. ARTICLE IV Events of Default/Remedies a. City's Defaults/Engineer's Remedies. In the event the City shall default in the performance of any term or provision of this Agreement for any reason other than failure by Engineer to perform hereunder, Engineer may, if said default shall be continuing after five (5) days notice of such default is deemed received by the City, exercise any right or remedy available to it by law, contract, equity or otherwise. b. Engineer's Defaults/City's Remedies. In the event Engineer shall default in the performance of any term or provision of this Agreement for any reason other than failure by the City to perform hereunder, the City may, if said default shall be continuing after five (5) days notice of such default is deemed received by Engineer, exercise any right or remedy available to it by law, contract, equity or otherwise, including without limitation, specific performance and/or the right to terminate this Agreement without additional notice. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. -3- 5.01 ARTICLE V Insurance/Indemnity Engineer shall procure and carry, at its sole cost and expense through the life of this Agreement, insurance protection as hereinafter specified, in form and substance satisfactory to City, carried with an insurance company authorized to transact business in the state of Texas, covering all aspects and risks of loss of all operations in connection with this Agreement, including without limitation, the indemnity obligations set forth herein. Engineer shall obtain and maintain in full force and effect during the term of this Agreement, commercial general liability, professional liability and automobile liability coverage with insurance carriers admitted to do business in the state of Texas. The insurance companies must carry a Best's Rating of A-VII or better. The policies will be written on an occurrence basis, subject to the following minimum limits of liability: Commercial General Liability: Combined Single Limit: Professional Liability: Combined Single Limit: Automobile Liability: Combined Single Limit for any auto $1,000,000 $500,000 $500,000 Per Occurrence The City shall be listed as a primary additional insured with respect to the Automobile Liability and Commercial General Liability and shall be granted a waiver of subrogation under those policies. Engineer shall provide a Certificate M of Insurance to the City as evidence of coverage. The Certificate shall provide 30 days notice of cancellation. A copy of the additional insured endorsement and waiver of subrogation attached to the policy will be included in the Certificate. Engineer shall elect to obtain worker's compensation coverage pursuant to Section 406.002 of the Texas Labor Code. Further, Engineer shall maintain said coverage throughout the term of this Agreement and shall comply with all provisions of Title 5 of the Texas Labor Code to ensure that the Engineer maintains said coverage. The Engineer may maintain Occupational Accident and Disability Insurance in lieu of Worker's Compensation. In either event, the policy must be endorsed to include a waiver of subrogation in favor of the City of Lubbock. If at any time during the life of the Agreement or any extension hereof, Engineer fails to maintain the required insurance in full force and effect, Engineer shall be in breach hereof and all work under the Agreement shall be discontinued immediately. Engineer shall indemnify and hold City and City's elected officials, officers, agents, employees and independent contractors harmless, to the fullest extent permitted by law, from and against any and all claims, demands, damages, costs, liabilities and expenses, and including reasonable attorney's fees, as a result of, related to or arising from Engineer's use or occupation of City owned lands, and/or any matter related to Engineer's activities, performances, operations or omissions under this Agreement. The indemnity provided herein shall survive the expiration or termination of this Agreement. 519 ARTICLE VI Miscellaneous 6.01 Engineer shall comply with all laws, statutes, regulations, ordinances, rules and any other legal requirement related to, in any way, manner or form, the performance of the Services contemplated herein. 6.02 Any notice required by this Agreement shall be deemed to be properly served, if (i) provided in person or by telephonic facsimile; or (ii) deposited in the United States mail by certified letter, return receipt requested, addressed to the recipient at recipient's address shown below, subject to the right of either party to designate a different address by notice given in the manner just described. Notice shall be deemed to be received when delivered if provided in person or by telephonic facsimile or, if deposited in the United States mail, as set forth above, three (3) days after depositing such notice in the United States mail, as set forth above. For City: Tom Adams, Deputy City Manager P.O. Box 2000 Lubbock, Texas 79457 Facsimile: (806) 775-2051 w/ copy to: Wood Franklin, P.E. P.O. Box 2000 Lubbock, Texas 79457 Facsimile: (806) 775-3344 For Engineer: John S. Kelley, P.E. Parkhill, Smith & Cooper, Inc. 4222 85`h Street -6- Lubbock, Texas 79423 Facsimile No. 806-473-3500 6.03 THIS AGREEMENT IS TO BE CONSTRUED UNDER TEXAS LAW WITHOUT REGARD TO CONFLICT OF LAW RULES THAT WOULD DIRECT APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION. THE OBLIGATIONS OF THE PARTIES CREATED BY THIS AGREEMENT ARE PERFORMABLE, AT LEAST IN PART, IN LUBBOCK COUNTY, TEXAS. VENUE FOR ANY ACTION BROUGHT PURSUANT TO THIS AGREEMENT, OR ACTIVITY CONTEMPLATED HEREBY, SHALL EXCLUSIVELY BE IN LUBBOCK COUNTY, TEXAS. 6.04 This Agreement represents the entire and sole agreement between the City and Engineer with respect to the subject matter hereof and supersedes any and all prior negotiations, understandings, representations or other agreements, whether written or oral. This Agreement may not be modified or amended except in writing and duly executed by each party hereto. 6.05 Nothing contained herein shall be construed to imply a joint venture, joint enterprise, partnership or principal — agent relationship between Engineer and the City. 6.06 If any provision of this Agreement is declared invalid or unenforceable, such provision shall be deemed modified to the extent necessary to render it valid and enforceable so long as said modification is reasonably within the intent the parties as originally expressed. In the event such provision may not be so modified, the unenforceability or invalidity of any provision shall not affect any other provision -7- of this Agreement, and this Agreement shall continue in force and effect as if such provision had not been included in this Agreement. 6.07 Any and all documents, drawings and specifications prepared by Engineer as part of the Services hereunder, shall become the property of the City when Engineer has been compensated as set forth in Section 2.01, above. 6.08 A waiver by either City or Engineer of a breach of this Agreement must be in writing to be effective. In the event either party shall execute and deliver such waiver, such waiver shall not affect the waiving party's rights with respect to any other or subsequent breach. 6.09 Neither City nor Engineer may assign this Agreement, in whole or in part, without the written consent of such assignment by the non -assigning party. City and Engineer each bind itself or himself, their legal representatives and permitted assigns in respect to all provisions of this Agreement. 6.10 Nothing in this Agreement shall be construed to provide any rights or benefits whatsoever to any party other than City and Engineer. 6.11 Engineer represents and warrants to City that it has taken all actions necessary to authorize the party executing this Agreement to bind, in all respects, Engineer to all terms and provisions of this Agreement, and that such person possesses authority to execute this Agreement and bind Engineer hereto. 10 IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date first written above. Parkhill, Smith & Cooper, Inc. By: Name: John S. Kelley, P. . Title: Firm Principal/Project Manager CITY OF LUBBOCK ATTEST: R becca Ga a, City Secretary APPROVED AS TO CONTENT: Thomas Adams, Deputy City Manager APPROVED AS TO FORM: Richard K. Casner, First Assistant City Attorney mi/Cityatt/Richard/ProfessionalServicesAgreement-PSC inc-LAH August 14, 2006 0 Resolution No. 2006-R0412 August 24, 2006 Item No. 6.11 Exhibit "A" Lake Alan Henry Water Transmission Line, Pump Stations, Water Treatment Facility and Related Projects Scope of Services The scope of services includes preliminary engineering for conveying surface water from Lake Alan Henry to the City of Lubbock for use as a drinking water supply, with initial emphasis on the pipeline route and facility locations in sufficient detail to enable the City to begin easement and land acquisition proceedings. The project will also provide conceptual engineering for the necessary associated facilities, including an intake pump station, intermediate pump stations, a terminal storage reservoir, new water treatment plant, and connections to the existing distribution system. The work will result in the preparation of an engineering report that provides a clear understanding of the major facilities that will be required, issues that need to be resolved in detailed design, including environmental and permitting issues, and opinions of probable construction costs. A. General Work Items — On or before January 1, 2008, Engineer shall perform the following: 1. Conduct a project initiation meeting to further clarify Owner's requirements for the Project, identify and collect pertinent available data, review project staffing and organization, present initial work plan, and present initial work schedule. 2. Geotechnical, archaeological, and environmental issues will be evaluated from a "desktop" approach with no anticipated fieldwork other than general verification to avoid readily available and known archaeological, wetland, floodplain, and similar sites. These evaluations will consist of general evaluations of the key issues that could impact routing, siting and alignment alternatives as well as project costs. Regulatory agencies will be contacted to determine permitting requirements and to identify any issues that could impact the project schedule, including a Certificate of Convenience and Necessity (CCN) potentially required to provide utility service to the project component locations. 4. Participate in informal meetings with the Owner to review progress and exchange ideas and information. Prepare and distribute meeting minutes for project meetings. B. Preliminary Work Items — On or before January 1, 2007, Engineer shall perform the following: 1. Integrated Water Resources Evaluation a. Review the City of Lubbock's Water Supply Plan and Report dated June 2005; verify and quantify the City's available water supply sources and the projected system demand requirements --both AAD and Peak Day. -10- b. Identify and quantify risks associated with each supply source that could impact the City's ability to meet demand projections. c. Prepare a water balance spreadsheet model to evaluate the conjunctive use of the potential supply sources. d. Evaluate the model to optimize the use of the resources on a daily, weekly, or monthly time -step to help the City use its resources as effectively as possible to maximize their yield. 2. Establish the basic design flow, maximum flow, flow ranges and patterns, and hydraulic capacity of the conveyance, storage, and treatment facilities. Establish water quality treatment goals for new facilities. 3. Evaluate and discuss with the City the potential impact of the location of the water treatment plant (either near Lubbock, near Post, or at Lake Alan Henry) on the staffing and operations of the plant and on the associated capacity and budgetary requirements of the transmission pipeline, transmission pump stations, terminal storage reservoir, and water treatment plant 4. Evaluate the extent of additional facilities needed to incorporate existing and proposed facilities owned and operated by the White River Municipal Water District, including the proposed Post Reservoir. 5. Review surrounding area and community water supply demands and projected deficiencies as identified in the Regional Water Plan, and evaluate the impact of those additional demands on the project. Evaluate the impact of those needs on the ability of the system to provide treated water versus raw water to those cities, acknowledging that most of the surrounding communities do not have surface water treatment facilities. 6. Identify existing energy and power providers available in the project areas. Evaluate potential feasibility of integrated renewable sources, such as on -site wind energy as an opportunity in Distributed Power Generation. 7. Review findings with City for direction and impact on subsequent work items. C. Objectives, Selection Criteria and Data Review 1. The route study will include various alternatives: a. Most direct route b. Route maximizing use of highway right of way, as available c. Route best accommodating potential connections with the proposed Post Reservoir 2. Selection and facility location(s) criteria will be determined in conjunction with the City, and will include, among others: a. Construction Costs b. Land Costs c. Environmental Permitting Issues d. Total life cycle costs including capital, pumping, operations, and maintenance costs e. Compatibility of alternate routes to allow a future water supply from the proposed Post Reservoir f. Cost of power lines and access roads to pump stations 3. Data review will include: a. Aerial photography from DOQQ or other sources for cropland and other conflicts b. USGS digital contour maps c. Property maps from local appraisal districts d. Geologic and soil mapping e. Wetland mapping, species habitat mapping, and historical site mapping of the potential routes f. Flood mapping g. Utility mapping where available h. Mapping of White River Municipal Water District water transmission facilities i. City mapping including master thoroughfare plans, utility maps, street maps, property maps, aerial photography, and contour maps as available j. Oil and gas well and pipeline mapping Methodology A. Route Study 1. Route Selection a. Review available topographic, property, and utility maps within the corridor to determine potential alternative alignments. b. Conduct a surface reconnaissance field survey to review the potential alignment alternatives within the corridor to determine if there are additional alternatives not apparent from the available records, as well as to identify potentially problematic creek, terrain, road crossings, and other conflicts. c. Develop preliminary ownership maps, based on information that can be readily obtained from the county appraisal district office(s) which reflects the proposed routing of the project and the apparent ownership of the properties to be affected. This activity is solely to estimate the number of easements that would be required to be obtained. d. Meet with representatives of the various governmental agencies through which the pipeline will pass to review alternative pipeline alignments through their area of jurisdiction, as well as availability of public right-of-way for placement of the pipeline. e. Identify both construction and permanent easement requirements. SPA 2. Evaluate alternative hydraulic scenarios, piping materials, diameters, pipe pressure classes, valve types and locations, and appurtenances such as blow -off and air release valves. 3. Evaluate relative route differences in cost, land issues, and hydraulics, as well as environmental issues associated with each alternative route, as affects permitting, construction time requirements, and construction costs, including: a. Designations of waters of the United States b. Archeological Sites c. Historic sites d. Wetlands e. Playa lakes f. Threatened and endangered species 4. Prepare summary memorandum. a. Summarize advantages and disadvantages of the basic alignment and each alternative alignment, considering geotechnical conditions, urban development conditions, service requirements, construction difficulties, environmental factors, and overall costs. b. Prepare estimates of probable construction cost for the alternatives and make a cost effectiveness analysis of the alternatives based on the opinions of probable construction costs, operating and maintenance costs, and other project costs. c. Prepare recommendation for route, including identification of temporary and permanent easement requirements. d. Prepare a draft memorandum containing the materials, information and evaluations set forth in this paragraph A, "Methodology" and submit to the City on or before May 1, 2007. e. Review draft with Owner and revise as required on or before 30 days after the draft memorandum has been delivered to the City. f. Prepare a memorandum listing major review comments and the resolution of the comments on or before 30 days after receiving comments from the City. g. Issue final memorandum in sufficient clarity and detail for City to initiate field survey work for the right-of-way and easement acquisition process on or before September 1, 2007. B. Raw Water Intake 1. Review raw water intake concept and planned facilities. a. Verify the intake pump station site b. Identify and evaluate access and utilities to serve the intake pump station c. Verify the tailwater elevations of the Probable Maximum Flood for the planned pump station location. -13- 2. Prepare summary memorandum. a. Summarize findings, including geotechnical conditions, water quality issues, constructability, access, utilities, environmental factors, and overall cost effects. b. Summarize advantages and disadvantages of each alternative intake design concept. c. Prepare estimates of probable construction cost for the alternatives and make a cost effectiveness analysis of the alternatives based on the opinions of probable construction costs, operating and maintenance costs, and other project costs. d. Prepare a draft memorandum containing the materials, information and evaluations set forth in this paragraph B, "Methodology" and submit to the City on or before January 1, 2007. e. Review draft with Owner and revise as required on or before 30 days after the draft memorandum has been delivered to the City. f. Prepare a memorandum listing major review comments and the resolution of the comments on or before 30 days after receiving comments from the City. g. Issue final memorandum on or before May 1, 2007. C. Pumping Station(s) Pump station design criteria. a. Establish the firm capacities and the capacity ranges for each pump station. b. Identify type, number, capacity, speed ranges, drive types, horsepower, and type of control for all pumping units. c. Evaluate alternative pumping station site locations to determine the most cost-effective locations for pipeline pressure, access, power supply availability, and site constraint issues. d. Evaluate alternatives for phasing pump station construction to meet initial and future requirements. e. Evaluate alternatives for controlling biological growth within the conveyance system and means of delivering at the points of application. f. Evaluate necessary surge control facilities. g. Evaluate the need for on -site flow storage facilities. h. Develop conceptual layouts of the pumping station on or before May 1, 2007. Include in summary memorandum. 2. Prepare summary memorandum. a. Summarize advantages and disadvantages of the alternatives, considering geotechnical conditions, urban development conditions, service requirements, construction difficulties, environmental factors, and overall costs. b. Prepare estimates of probable construction cost for the alternatives and make a cost effectiveness analysis of the alternatives based on the opinions of probable construction costs, operating and maintenance costs, and other project costs. -14- c. Prepare a draft memorandum containing the materials, information and evaluations set forth in this paragraph C, "Methodology" and submit to the City on or before May 1, 2007. d. Review draft with Owner and revise as required on or before 30 days after the draft memorandum has been delivered to the City. e. Prepare a memorandum listing major review comments and the resolution of the comments on or before 30 days after receiving comments from the City. f. Issue final memorandum on or before September 1, 2007. D. Water Treatment Facilities Plan Review existing regulations and anticipated future regulations and evaluate the potential impacts of these regulations on the Owner. Perform desktop review of source water quality from Lake Alan Henry, future Post Reservoir, and future wastewater treatment plant effluent. a. Determine historical means, ranges, and trends of water quality constituents based on available data. b. Estimate water quality changes which may occur due to transport from source to point of delivery. c. Investigate the potential for water quality problems and improvements due to mixing of treated water supply sources due to total dissolved solids, pH, alkalinity, disinfectants, and other reactive characteristics. d. Recommend additional testing to be performed by Owner for additional data as required by the Texas Commission on Environmental Quality and the treatment technologies to be evaluated, upon review of existing data. Develop sampling and testing protocol for purpose of obtaining meaningful results. 2. Evaluate raw water storage needs. Identify locations and basic capacities needed. Optimize size and location to minimize life -cycle cost of raw water conveyance facilities, taking into account initial capital costs and long-term operation and maintenance costs. 3. Evaluate up to three alternative liquid treatment process alternatives that could be capable of meeting the finished water quality parameters desired by the City of Lubbock. 4. Evaluate up to three sludge disposal alternatives to determine their ability to meet the Owner's goals and objectives and meet existing and future regulatory requirements. Potential disposal alternatives will include discharge to the sanitary sewer system, co -use with wastewater treatment plant biosolids, landfill cover, on -site monofill, and potential market to outside sources for soil amendments. Upon completion of evaluation of sludge disposal alternatives, evaluate up to three solids dewatering alternatives to meet the Owner's sludge disposal goals and objectives and regulatory requirements. -15- 5. Evaluate laboratory facilities needs. Review the adequacy of the existing laboratory facilities to meet future needs. 6. Evaluate chemical delivery alternatives and review transportation corridors to the water plant site. 7. Evaluate alternative layouts and develop preliminary site plan. 8. Develop preliminary hydraulic profile. 9. Develop architectural concept of the proposed treatment facility. 10.Develop basic utilities services concepts, including standby power. I I.Prepare estimates of probable construction cost for the alternatives and make a cost effectiveness analysis of the alternatives based on the opinions of probable construction costs, operating and maintenance costs, and other project costs. 12.Prepare summary memorandum. a. Summarize advantages and disadvantages of the alternatives, considering geotechnical conditions, urban development conditions, service requirements, construction difficulties, environmental factors, and overall costs. b. Summarize probable construction cost. c. Prepare a draft memorandum containing the materials, information and evaluations set forth in this paragraph D, "Methodology" and submit to Owner on or before August 1, 2007. d. Review draft with Owner and revise as required on or before 30 days after the draft memorandum has been delivered to the City. e. Prepare a memorandum listing major review comments and the resolution of the comments on or before 30 days after receiving comments from the City. f. Issue final memorandum on or before December 1, 2007. E. Water Distribution System Evaluation 1. Review previous modeling efforts and subsequent system improvements. Identify impact to the distribution system for alternate treatment plant locations. 2. Evaluate high -service or low -head pumping requirements into City distribution system. Based on previous and updated distribution system models, optimize size and location to maximize value of distribution system improvements. 3. Prepare summary memorandum -16- a. Prepare a draft memorandum containing the materials, information and evaluations set forth in this paragraph E, "Methodology" and submit to Owner on or before August 1, 2007. b. Review draft with Owner and revise as required on or before 30 days after the draft memorandum has been delivered to the City. c. Prepare a memorandum listing major review comments and the resolution of the comments on or before 30 days after receiving comments from the City. d. Issue final memorandum on or before December 1, 2007. F. Power Delivery Plan The effective use of energy for the large pumping load and water treatment processes will be critical to the long-term economic operation of this project. On -site electric generation may offer savings over electricity purchased through the local utility because on -site power is not subject to losses through the utility's transmission and distribution system and the remote pumping stations may require substantial construction of new transmission, substation and distribution facilities to service these stations. An analysis of the electric loads of the facilities and alternative electric supply options to develop a least -cost life -cycle energy supply plan for the project will be performed. This study will include the following major tasks. 1. Energy Demand Analysis - Define the electric peak demand and demand profiles for the facility based on the conceptual designs for the pumping stations and water treatment plant. The cost of the local utility providing electricity to the facility will be determined as a basis for comparison to an on -site wind energy generation option. Develop options for on -site wind energy projects, including the impact of a single utility -scale wind turbine, enough turbines to meet the project's minimum demand, and turbines to provide sufficient generation to offset the facility's expected annual energy consumption. The feasibility of each project option will be discussed in context with ERCOT interconnection allowances. 2. Wind Energy Technical Feasibility Review - The wind resource of the project site will be evaluated using the Texas wind resource map and the performance characteristics of nearby wind energy projects. Estimates of the likely annual and monthly average energy production of candidate wind turbine designs will be prepared. 3. High-level Conceptual Design and Cost Estimate - A high level conceptual design will be developed for each generation alternative that is deemed to be feasible in the previous task. The conceptual design will include a description of the electric generation option, a preliminary power generation layout diagram, and a major equipment list. Indicative capital and operations and maintenance (O&M) cost estimates will then be developed for each alternative to support the economic evaluation. 4. Economic Evaluation - The levelized cost of electricity will be calculated for each of the short-listed power generation options. The levelized cost is the life -cycle cost per kWh of -17- generating power with a particular technology considering the capacity factor (utilization factor), capital cost, operations cost, financing cost, and economic incentives. 5. Power Supply Plan Development - Develop a power supply plan based on the results of each of the previous tasks. The cost of providing power will be considered along with the generation profile of the most promising options. For example, wind energy provides an intermittent generation profile which may or may not be acceptable for this application. An integrated solution with multiple power supply options will likely be the best solution. This approach combines the benefits of fixed -cost power generation with the reliability and availability of traditional electric delivery options. 6. Prepare summary memorandum. a. Summarize advantages and disadvantages of the alternatives, considering urban development conditions, service requirements, construction difficulties, environmental factors, and overall costs. b. Summarize probable construction cost. c. Prepare a draft memorandum containing the materials, information and evaluations set forth in this paragraph F, "Methodology" and submit to the City on or before August 1, 2007. d. Review draft with Owner and revise as required on or before 30 days after the draft memorandum has been delivered to the City. e. Prepare a memorandum listing major review comments and the resolution of the comments on or before 30 days after receiving comments from the City. f. Issue final memorandum on or before December 1, 2007. G. Preliminary Engineering Report 1. Prepare a draft report that compiles the findings and recommendations of the individual memoranda to present a recommended plan of improvements and opinions of probable construction cost for that plan. Submit twenty copies to Owner for review and comment on or before November 1, 2007. 2. After Owner has reviewed and commented, make any necessary modifications and submit twenty copies of the final report to Owner on or before January 1, 2008. Submit to TCEQ for concept approval. DE:1 Resolution No. 2006-RO412 August 24, 2006 Item No. 6.11 EXHIBIT B PAYMENTS TO ENGINEER LUMP SUM METHOD Article II of the Agreement is amended and supplemented to include the following agreement of the parties: ARTICLE II -- PAYMENTS TO THE ENGINEER B4.01 For Basic Services Having A Determined Scope --Lump Sum Method of Payment A. OWNER shall pay ENGINEER for Basic Services set forth in Exhibit A as follows: 1. A Lump Sum amount of $525,000.00 distributed per work item as follows: Preliminary Work Items $ 75,000 Route Study $125,000 Raw Water Intake $ 20,000 Pumping Stations $ 60,000 Water Treatment Facilities Plan $140,000 Water Distribution System Evaluation $ 25,000 Power Delivery Plan $ 25,000 Preliminary Engineering Report $ 55,000 2. The Lump Sum includes compensation for ENGINEER's services and services of ENGINEER's Consultants. Appropriate amounts have been incorporated in the Lump Sum to account for labor, overhead, profit, and expenses. 3. The portion of the Lump Sum amount billed for ENGINEER's services will be based upon ENGINEER's reasonable estimate of the proportion of the total services actually completed during the billing period to the Lump Sum. B4.02 For Authorized Additional Services --Standard Hourly Rates Method of Payment. A. OWNER shall pay ENGINEER for authorized additional services, if and as set forth in writing, from the City Manager, or his/her designee, such authority to designate the additional services being hereby delegated by the City Council, shall be billed and payable as follows: 1. For labor on an hourly rate basis in accordance with the attached schedule. 2. For reimbursable expenses, on the basis of cost times a factor of 1.15 . B. The hourly rate schedule will be adjusted each January 1st to reflect cost of living adjustments, limited to a maximum increase of 3 % per annum. -19- Rules and Expenses for Additional Services if Authorized Client: Project: Agreement Date: Classification Hourly Rate PROFESSIONAL LEVEL VII Engineer VII Architect Vill Landscape Architect Vlll PROFESSIONAL LEVEL VI Engineer VI Architect VII Landscape Architect VII PROFESSIONAL LEVEL V Engineer V Architect VI Landscape Architect VI PROFESSIONAL LEVEL IV Engineer IV Architect V Landscape Architect V PROFESSIONAL LEVEL III Engineer III Architect IV Interior Designer V Engineering Technologist IV Resident Project Representative IV Landscape Architect IV PROFESSIONAL LEVEL II Engineer UII Architect III Interior Designer IV Engineering Technologist III Resident Project Representative III Landscape Architect III Expenses Parkhill, Smith & Cooper, Inc. Hourly Rate Schedule Current through December 31, 2006 January 1, 2006 Classification Hourly Rate 148.00 PROFESSIONAL LEVEL 1 66.00 Intern (Architect) 1/11 Interior Designer III Intern (Interiors) II Engineering Technologist I/11 126.00 Resident Project Representative 1/11 CADD Manager V SUPPORT STAFF III 63.00 Engineering Technician III/IV 112.00 CADD IV Administrative Secretary III SUPPORT STAFF 11 58.00 Accounting Clerk 96.00 CADD Clerical Engineering Technician 1/11 Administrative Secretary I 111 81.00 SUPPORT STAFF 1 32.00 Accounting Clerk Trainee CADD Trainee Clerical Trainee 73.00 Reimbursement for expenses, as listed below, incurred in connection with any additional services, will be at cost plus fifteen percent for items such as: 1. Maps, photographs, postage, toll telephone, reproductions, printing, equipment rental, and special supplies related to the services. 2. Consultants, soils engineers, surveyors, contractors, and other outside services. 3. Rented vehicles, local public transportation and taxis, travel, and subsistence. 4. Special or job specific fees, insurance, permits, and licenses applicable to the work services. 5. Outside computer processing, computation, and proprietary programs purchased for the services. Rate for professional staff for legal proceedings or as expert witnesses will be a rate one and one-half times the Hourly Rates specified above. Excise and gross receipts taxes, if any, will be added as an expense. The foregoing Schedule of Charges is incorporated into the agreement for the services provided, effective January 1, 2006 through December 3I , 2006. After December 31, 2006, invoices will reflect the Schedule of Charges currently in effect, as limited in this Contract.