HomeMy WebLinkAboutResolution - 2008-R0097 - Agreement - Black & Veatch Corporation - 03_13_2008Resolution No. 2008-R0097
March 13, 2008
Item No. 4.23
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 with Black & Veatch Corporation which is attached hereto and which shall be
spread upon the minutes of the Council and as spread upon the minutes of this Council
shall constitute and be a part of this Resolution as if fully copied herein in detail.
Passed by the City Council this
13th day of March , 2008.
DavIdM;iller, Mayor
ATTEST:
AfReb-ca Garza., Cit-,, Secretar
APPROVED AS TO CONTENT:
Thomas Adams, f5eputy City Manager
APPROVED AS TO FORM:
Matthew L. Wade
Assistant City Attorney
Q:ccdocs/RES-Black & Veateb Corporation
Resolution No. 2008-R0097
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement ("Agreement") is entered into this 8th day
of February, 2008, by and between the City of Lubbock and its municipally owned
electric utility, Lubbock Power & Light (collectively the "City"), a Texas home rule
municipal corporation, and BLACK & VEATCH CORPORATION ("Consultant").
WITNESSETH
WHEREAS, the City desires assistance in connection with internal support
services provided by the utility departments of the City of Lubbock owned utilities
(Utilities) including, but not linuted to, issues raised in internal audit #0701.
WHEREAS, the City desires to contract with Consultant to perform services
related to the internal support services provided by the utility departments of the City of
Lubbock owned utilities (Utilities) including, but not limited to, issues raised in internal
audit #0701Services and Consultant 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 Consultant agree as follows:
ARTICLE I
Services
1,01 Consultant shall conduct all activities and within such time frames, as set forth on
Exhibit "A", attached hereto (the "Services"). Consultant will receive an
equitable extension of time for delays beyond its reasonable control.
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 due and payable in accordance to the terms and conditions
outlined in Exhibit "A".
2.02 The term of this Agreement shall be for six (6) months beginning on March ,
2008. Additionally, the City may terminate this Agreement by providing written
notice to Consultant 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 Consultant only for services actually performed by
Consultant up to and including the date the Consultant is deemed to have received
the City's notice of termination.
ARTICLE III
Independent Contractor
3.01 It is understood and agreed that Consultant 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 Consultant under
similar circumstances and Consultant hereby agrees with the City that the
Services shall be so performed.
If, during the six-month period following the earlier of completion of the
Services, it is shown there is an error in the Services caused by Consultants failure
to meet such standards, and City has notified Consultant in writing of any such
error within that period, Consultant shall perform, at Consultant's cost, such
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corrective consulting services within the original Scope of Work as may be
necessary to remedy such error. Except as provided in this Section 3.01,
Consultant makes no other warranties or guarantees, express or implied, relating
to Consultant's services and Consultant disclaimer any implied warranties or
warranties imposed by law including warranties of merchantability and fitness for
a particular purpose. This Section governs, modifies, and supersedes any other
terms in this Agreement which may be construed to address warranties or
guarantees or the quality of the Services. It is understood that Consultant will not
provide legal advice and City will obtain legal advice from its attorneys.
3.02 Further, Consultant is and shall be considered at all times an independent
M
contractor under this Agreement and/or in its service, hereunder. During the
performance of the Services under this Agreement, Consultant and Consultant'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/Rcmedies
a. City's Defaults/Consultant'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 Consultant to perform hereunder, Consultant may, if said default shall be
Page 3 of l 1
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. Consultant's Defaults/City's Remedies. In the event Consultant 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 Consultant, exercise any
right or remedy available to it hereunder and terminate this Agreement without additional
notice.
The remedies set forth herein are cumulative and may be exercised concurrently.
ARTICLE V
Insurance/Indemnity
5.01 Consultant 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.
Consultant shall maintain in force, during the term of this Agreement,
workers' compensation insurance in accordance with the laws of the states having
jurisdiction over Consultant's employees who are engaged in the Services and
employer's liability insurance with a limit of $100,000 each occurrence and in the
aggregate. Consultant also shall maintain commercial general liability insurance
with a limit of $1,000,000 per occurrence and in the aggregate; automobile
liability insurance with combined single limit of $1,000,000; and professional
Page 4 of 1 1
liability insurance with per occurrence and aggregate limits of $1,000,000. The
policies (not including the professional liability 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,
Consultant fails to maintain the required insurance in full force and effect,
Consultant shall be in breach hereof and all work under the Agreement shall be
discontinued immediately.
Consultant 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, for bodily
injury, death, or third -party property damages to the extent of Consultant's
negligence or willful misconduct.
ARTICLE VI
Miscellaneous
6.01 Consultant 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
Page 5 of 1 1
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/LP&L:
Damian Pantoya,CPA, CIA
Finance Director Electric Utilities
P.O. Box 2000
Lubbock, Texas 79457
W/ copy to:
Aubry Spear, RF
Assistant Director of ?dater Utilities
402 Municipal Driup
Lubbock, Texas 791;5i
For Consultant:
Richard Heenan
Senior Vice -President
Black & Veatch Corporation
11401 Lamar Avenue
Overland Park, KS 66211
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
Page 6 of I
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
Consultant 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 Consultant 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
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 Consultant as
part of the Services hereunder, shall become the property of the City when
Consultant has been compensated as set forth in Section 2.01, above. Documents,
drawings, specifications, and reports prepared by Consultant pursuant to this
Agreement, are instruments of service in respect to the project and not intended to
be suitable for reuse on other projects. At all times, each party shall retain all of its
rights in its drawing details, designs, specifications, databases, computer software,
Page 7 of 11
copyrights, trade and service marks, patents, trade secrets, and any other proprietary
property.
6.08 The City may audit and inspect Consultant's records and accounts covering fees
and reimbursable costs for a period of six months following the completion of
Consultant's Services. The purpose of any such audit shall be only for verification
of such costs. Consultant shall not be required to keep records of or provide
access to those of its costs expressed as fixed rates, a lump sum, or as a
percentage of other costs.
6.09 A waiver by either City or Consultant 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.
6.10 Neither City nor Consultant may assign this Agreement, in whole or in part,
without the written consent of such assignment by the non -assigning party. City
and Consultant each bind itself, their legal representatives and permitted assigns
in respect to all provisions of this Agreement.
6.11 To the extent possible, this Agreement and any exhibit hereto shall be construed
as being consistent with one another. In the event that the terms and conditions
contained in this Agreement conflict with the terms of any exhibit attached hereto,
the terms and conditions of this Agreement shall control.
6.12 Nothing in this Agreement shall be construed to provide any rights or benefits
whatsoever to any party other than City and Consultant.
6.13 Consultant represents and warrants to City that it has taken all actions necessary
to authorize the party executing this Agreement to bind, in all respects, Consultant
Page 8 of I I
to all terms and provisions of this Agreement, and that such person possesses
authority to execute this Agreement and bind Consultant hereto.
6.14 Neither party shall be liable to the other party for loss of profits or revenue; loss
of use; loss of opportunity; loss of goodwill; cost of substitute services; cost of
capital; governmental and regulatory sanctions; and claims of customers for such
damages; or for any special, consequential, incidental, or indirect damages. The
warranties, obligations, liabilities and remedies of the parties, as provided herein,
are exclusive and in lieu of any others available at law or in equity. Consultant's
total aggregate liability under this Agreement shall not exceed the compensation
received by Consultant under this Agreement. To the fullest extent allowed by
law, releases from, waivers of, and limitations of liability shall apply
notwithstanding the breach of contract, tort including negligence, strict liability or
other theory of legal liability of the party released or whose liability is limited.
IN WITNESS WHEREOF, the parties have executed this Agreement by their
duly authorized representatives as of the date first written above.
BLACK & V)E/ATCH CORPORATION
B y:
�
Name: Richard J. Heenan
Title: Senior Vice President
Flo
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CITY OF LUBBOCK
DA •'
ATTEST:
Rebe ca Garza, City Secretary
APPROV ' TO C TENT:
'----n—orn—as Adams, Deputy City Manager
APPROVED AS TO FORM:
Mat ew L. Wade,
Natural Resources Attorney
Page 10 of 11
A i i EST:
Lo ehart, Board Secretary
APPROVED AS TO CONTENT:
Gary Z1194
Director of Electric Utilities
APPROVED AS TO FORM:
,00W't Zel/
Matthew L. Wade
Natural Resources Attorney
LUBBOCK POWER & LIGHT
r
W.R. Collier, Chairman
Page 1 1 of 1 1
Resolution No. 2008—R0097
EXHIBIT A
PROFESSIONAL SERVICES AGREEMENT
WITH BLACK AND VEATCH CORPORATION
A. Requested Services - The City of Lubbock desires assistance in connection with internal support
services provided by the utility departments of the City of Lubbock owned utilities (Utilities) In this
regard, Utilities include Lubbock Power & Light (LP&L), Lubbock Water, Stormwater, Garbage,
and Sewer services. The City of Lubbock desires assistance in connection with issues raised in
internal audit #0701. Specifically, issues stated in internal audit report #0701 as follows: 01)Service
Level Agreements (SLAB) that include pricing mechanisms for expectations such as customer
credits, delinquent accounts, payment arrangements, billing and collections, phone answer times,
cost control, and service; 2) Benchmarking of the LP&L's support services; 3) Automated Meter
Reading or AMI/AMR that include assistance with its automated meter reading program (AMR) and
with options regarding technologies and integrating those technologies with current systems; 4) and
how bills are presented to rate payers of the Utilities.
B. Scope of Services - The functional scope for this project would be the support services:
• Currently provided by the City of Lubbock to LP&L, Lubbock Water and the other utilities.
• Services provided by LP&L to the City of Lubbock, Lubbock Water and the other utilities.
• Benchmarking of the customer service levels provided to the utilities
• Identify metrics for both internal performance tracking and external comparison;
• Measure LP&L's performance against those metrics
• Identify call center best practices from other relevant utility organizations for implementation at
LP&L.
• Service Level Agreements for the utilities and the city to consider for implementation
• Current AMR/AMI initiative and planned AMR/AMI initiatives for Lubbock Water and LP&L
C. Key Deliverables — Communicate a clear understanding between the Customer and Service Provider
regarding the parameters that will be used in building/implementing the Provider/Customer
relationship. AMR parameters will be analyzed to define and develop AMR program strategy
elements and an AMR Business Case and Program Roadmap. The parameters will be developed
from a series of interviews among LP&L, Lubbock Water, the other utilities and the City of Lubbock
personnel. These interviews will be documented using a scoring template for setting the parameter
for the following areas:
• Governance Structure
• Customer Relationship Management Program
• Product/Service Offerings
• Service Level Agreements (SLA's)
• Pricing Mechanisms
• Service Provider Operating Model
• Service Provider Performance Management
• Analysis of current costs related to metering capabilities
• AMR/AMI Business Objectives
• AMR/AMI Current Capabilities
• AMR/AMI Dependencies and Risks
a. Deliverables for benchmarking
I. Report on Benchmarking of LP&L's Customer Services to Industry Standards.
Page 1 of 4 Exhibit A
Benchmarks of the most common Key Performance indicators in the call center
industry. The following KP1's will be included in the benchmarking report:
• Cost Metrics
Cost/Contact
Cost/Minute of Handle Time
• Productivity Metrics
Contacts/Agent-month
Agent Utilization
Service Level Metrics
Average Speed of Answer (ASA)
Call Abandonment Rate
Percent Answered in 30 Seconds or Less
Average queue time
Average hold time
Average time to abandon
• Quality Metrics
Call Quality
Customer Satisfaction
Percent of calls requiring rework
Agent Metrics
Agent Occupancy
Agent Turnover
Daily absenteeism
New Agent Training Hours
Ongoing Agent Training Hours
Agents as a Percent of Total Call Center FTEs
Schedule adherence
Agent tenure
Agent satisfaction
• Call Handling Metrics
Contact Handle Time
Talk time
After call work time
First Contact Resolution Rate
2. Percent of calls transferred
3. A Technology Profile of the benchmarking peer group
4. A Call Center Scorecard that is customized for LP&L
5. A Salary Survey for call center positions
6. LP&L's call center position on a two-dimensional Efficiency vs. Effectiveness
Matrix plotted along with other call centers in the benchmark
7. A Summary of LP&L's Call Center's Quartile Performance for each KPI
8. Correlation charts showing the cause -and -effect relationships between all KPI' s
9. Key Findings that are specific to the LP&L call center
10. Recommended Strategies for Improved Performance for LP&L
11. A comprehensive action plan for achieving world -class performance in the
LP&L call center
12. An on -site presentation of results
b. Deliverables for Service Level Agreement. Written model service level agreements for the City of
Page 2 of 4 Exhibit A
Lubbock to consider for implementation. It is understood that B&V will not provide legal advice
and the City of Lubbock will obtain legal advice from its attorneys. Include the below information
in the report:
• Create SLA's and pricing mechanisms for the delivery of services and address the issues raised
in internal audit report 40701
• Present an understanding of the cost for providing billing operations services, increasing
services, or adding services
• Present options to potentially reduce overall costs and improve services
• Recommendation for streamlining and improving services
• Design and produce reports through the Performance Management process that are meaningful
to the internal customers of the City of Lubbock and allow the management teams of the utilities
to understand how service levels are met and the results of process improvements made to
services
• Deliverables for Bill Presentment
• Develop at least three options for how bills should be presented to the citizens of Lubbock from
LP&L, Department of Water and other Lubbock utilities.
• Deliverables for AMI/AMR study
• Work jointly with Lubbock Water and LP&L to identify AMR/AMI program strategy elements
and business objectives
• Include in the study explanations of the different types of AMI/AMR technologies and how
business processes are changed.
• Strengths and weaknesses as they relate to Lubbock of the different technologies
• Recommend a best fit for the Lubbock utilities that include current state and an estimate of
current costs of Lubbock Water and LP&L for AMR/AMI projects
• Present a clear comprehension of AMRIAMI activities required to potentially create the stated
desired business objectives to support a strong business case.
c. Deliverables for AMI/AMR study. A business case report communicating the required
AMR/AMI activities to potentially achieve the stated desired business objectives.
1. Work jointly with Lubbock Water and LP&L to identify AMR program strategy
elements and business objectives
2. Include in the study explanations of the different types of AMI/AMR technologies
and how business processes are changed
3. Recommend a best fit for the Lubbock utilities that include current state and an
estimate of current costs of Lubbock Water and LP&L for AMR projects
4. Present a clear comprehension of AMR/AMI activities required to potentially create
the stated desired business objectives to support a strong business case.
Deliverables for Bill Presentment
Develop at least three options for how bills should be presented to the citizens of Lubbock from
LP&L, Department of Water and other Lubbock utilities.
L Include examples of other utilities
2. Include suggested technologies to create the reports or best fit technologies
3. At least three hard copy examples that the show the recommended bills in a
format within the capabilities of the recommended technologies.
Page 3 oF4 ftihihit A
D. Assessment/Parameter Setting: Develop the parameters that will be used to build the future Service
Provider Operating Model and a Roadmap for creating the Business Case to support a complete
AMR/AMI Program. By the end, Lubbock Water and the other utilities and the City of Lubbock will
be given information to form an understanding how the current customer service levels services
compare to industry standards. LP&L, Lubbock Water and the other utilities and the City of
Lubbock will have a joint understanding how the providing of services will be defined, governed,
priced, committed to in service level agreements and invoiced. Lubbock Water and the other utilities
and the City of Lubbock will be given information to form an understanding of examples of bill
presentment and the necessary resources to accomplish changes. AMR/AMI program Stakeholders
will be given information to form an understanding of AMR activities required to potentially create
the stated desired business objectives to support a strong business case.
E. Commencement Date: Final ratification is expected March 13, 2008. Therefore, work will begin no later
than March 17, 2008.
F. Cost of the Services and Billing Basis: Fees for this project are: (a) SLA Development Project -
$51,000.00 plus expenses limited/capped at $6,500; (b) AMR Business Case; Program Strategy -
$51,000,00 plus expenses limited/capped at $6,500; (c) Benchmarking project - $37,500 plus
expenses limited to $5,900. All expenses associated with this project will be billed to LP&L at B&V
cost, and B&V will keep expenses reasonable.
Monthly Billing: Commencing on or about the first day of the calendar month following execution
of this Agreement, and monthly thereafter, B&V shall furnish LP&L with an invoice covering the
Reimbursable Costs and Fee for services provided during the previous month and any interest due
under this Agreement. Invoices may be submitted electronically by email to dantoya(a!mvluhhock.its
and to Aspear("Jmail.cOubbock.tx.us. In such event, the electronic copy of the invoice will be
considered the official invoice and will not be followed by a hard copy invoice. Notwithstanding any
other provision of the above referenced Agreement, or this Exhibit A, B&V is under no obligation to
submit any deliverable if any invoice is more than 45 days outstanding. Invoices will be due upon
receipt.
G. Completion Date: Six weeks from start date.
H. Method of Payment: Payments to be made to B&V under this Agreement shall be electronically
transferred either by ACH, specifically in CCD+ or CTX format, or wire transfer to the bank account
and in accordance with the bank instructions identified in B&V's most recent invoice in immediately
available funds no later than the payment due date, Invoice number and project name shall be
referenced in the bank wire reference fields or the ACH addenda information.
Page 4 of 4 Exhibit A