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HomeMy WebLinkAboutResolution - 2004-R0102 - Consulting Agreement For Wate And Sewer Financial Planning - Rick Giardina - 02_19_2004Resolution No. 2004-RO102 February 19, 2004 Item No. 65 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 Consulting Agreement for water and sewer financial planning and rate analysis between the City of Lubbock and Rick Giardina & Associates, Inc., a Colorado corporation, and any other related documents. Said 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 19th day of AL, MAYOR ATTEST: Reb cca Garza, City Secretary APPROVED AS TO CONTENT: Sherry Stephens Acting Director of Public Works APPROVED AS TO FORM: r Richard K. Casner First Assistant City Attorney ke/ccdocs/Giardina. res February 11, 2004 2004. Giardini.Agreement Resolution No. 2004-RO102 February 19, 2004 Item No. 65 CONTRACT CONSULTING AGREEMENT This Consulting Agreement ("Agreement") is entered into this _ day of February, 2004 (hereinafter referred to as the effective date of the agreement) by and between the Lubbock, Texas ("City") and Rick Giardina & Associates, Inc. ("Contractor"), a Colorado corporation. Witnesseth WHEREAS, Contractor has substantial skill and experience in the preparation of water and sewer financial plan and rate analysis; and WHEREAS, the City desires to hire Contractor and Contractor desires to provide water and sewer financial plan and rate analysis services to the City. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the terms and conditions set forth herein. Article 1. Statement of Work Contractor shall provide professional services to the City as more fully described in Attachment A — Scope of Work. The Contractor's services shall include those services that are identified by the City. The draft Executive report will be delivered no later than August 1, 2004 as noted in Attachment B — Project Schedule. Within ten (10) days of receiving the City's continents on the draft report, Contractor will deliver the final Executive report. Article 2. Compensation The Contract Amount for the services provided for in Article 1. shall not exceed one hundred twenty-four thousand three hundred seventy-five dollars ($124,375) as more fully described in Attachment C — Fee Schedule. This amount includes all expenses. Page 1 Article 3. Payment Contractor shall submit invoices to the City on a monthly basis for services rendered to the date thereof. Such invoices shall be supported by appropriate documentation; at a minimum, the hours incurred by consultant by task, extended at the respective per hour billing rate. Expenses will be itemized by category (airfare, meals, rental car, etc.) and the current bill amount and amount billed to date will also be identified on each invoice. Upon receipt of a satisfactory invoice, the City will remit payment of same amount to the Contractor within fifteen (15) days. Article 4. Term and Termination The terms of this Agreement shall be for a period expiring June 30, 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. The provisions of Article 8 shall survive termination or expiration hereof. Article 5. Place of Performance Contractor shall be responsible for maintaining its own office facilities and will not be provided with either office facilities or secretarial support by the City. Article 6. Independent Contractor Status It is understood and agreed that Contractor will provide the services under this Agreement on a professional basis and as an independent contractor and that during the performance of the services under this Agreement, Contractor's employees will not be considered employees of the City within the meaning or the applications of any federal, state, or local laws or regulations including, but not limited to, laws or regulations covering unemployment insurance, old age benefits, worker's compensation, industrial accident, labor, or taxes of any kind. Contractor's employees shall not be entitled to benefits that may be afforded from time to time to City employees, including without limitation, vacation, holidays, sick leave, worker's compensation, and unemployment insurance. Further, the City shall not be responsible for withholding or paying any taxes or social security on behalf of Contractor's employees. Contractor shall be fully responsible for any such withholding or paying of taxes or social security. Article 7. Trademark and Trade Name This Agreement does not give either Party any ownership rights or interest in the other Party's trade name or trademarks. Page 2 Article 8. General Provisions A. Entire This Agreement represents the entire and sole agreement between the Parties Agreement: with respect to the subject matter hereof and supersedes any and all prior negotiations, understandings, representations, or consulting agreements whether written or oral. This Agreement cannot be modified, changed, or amended, except in writing signed by the Parties. B. Waiver: The failure of either Party to require performance by the other of any provision hereof shall in no way affect the right to require performance at any time thereafter, nor shall the waiver of a breach of any provision hereof be taken to be a waiver of any succeeding breach of such provision or as a waiver of the provision itself. All remedies afforded in this Agreement shall be taken and construed as cumulative; that is, in addition to every other remedy available at law or in equity. C. Relationship: Nothing herein contained shall be construed to imply a joint venture, partnership, or principal -agent relationship between Contractor and the City; and neither Party shall have the right, power, or authority to obligate or bind the other in any manner whatsoever, except as otherwise agreed to in writing. D. Assignment Neither Party shall assign or delegate this Agreement or any rights, duties, or and obligations hereunder without the express written consent of the other. Delegation: Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon the successors, legal representatives, and assignees of the Parties hereto. E. Severability: If any provision of this Agreement is declared invalid or unenforceable, such provision shall be deemed modified to the extent necessary and possible to render it valid and enforceable. In any event, 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, and be construed and enforced, as if such provision had not been included, or had been modified as above provided, as the case may be. F. Governing This Agreement shall be governed by, and construed in accordance with, the Law: laws of the State of Texas. G. Parag_raph The paragraph headings set forth in this Agreement are for the convenience Headings: of the Parties, and in no way define, limit, or describe the scope or intent of this Agreement and are to be given no legal effect. Page 3 IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized representatives. CONTRACTOR —RICK GIARDINA & ASSOCIAT C. (� 1 vJ RICHARD D. GIARDINA, PRESIDENT CITY OF LUBBOCK, TEXAS ATTEST: Reb ca Garza, City Secretary APPROVED AS TO CONTENT: 9L�'!A� e; �"-p kQi- Sherry Steph Ac ' g Directo of Public Works a Anita Burgess Acting Assistant City Manager APPROVED AS TO FORM: Richard Casner First Assistant City Attorney Page 4 Scope of Work ATTACHMENT A 2004 Rate Study Resolution No. 2004-RO102 2004 RATE STUDY SERVICES 1. Conduct Goal Setting Workshop with Lubbock Water and Sewer Rate Review, LRRC (to be scheduled for between March 5 and March 31, 2004). 2. Prepare separate multi -year financial plans for the City's Water and Sewer Funds. The plans will start with the current budget year/fiscal year (FY) 2003-04 and include an additional ten (10) years. The financial plans will provide the City with an indication of the revenue adjustments needed for each fiscal year of the study period. "Needed" revenue adjustments will be based on the ability of the projected revenues to meet established financial performance measures including debt service coverage, working capital or cash reserves, debt service reserves and the funding of a rate stabilization fund. 3. Complete a cost of service analysis for water and sewer service for a selected test year. In this instance, the recommended test year will be FY 2004-05. Costs will be developed for each customer class. 4. Develop alternative rates for water and sewer service. Based on the cost of service results, RGA will update water and sewer rates reflective of the City current structure. This will serve as the baseline for comparing alternative approaches. RGA will conduct a Conceptual Design Workshop with the LRRC for the purpose of determining pricing objectives and selecting up to four (4) alternative rate structures under which rates for service will be developed. Rates and customer impacts will be developed and reviewed with the City. 5. Prepare draft (25 copies) and final (25 copies and an electronic version) report (a full and comprehensive report) on the FY 2004-05 Rate Study. Prepare an Executive Report (10 draft and 40 final copies and an electronic version). 6. Present findings and recommendations to the LWAC (1 formal meeting) and City Council (3 formal meetings). 7. Develop financial planning and rate design models (using Excel software). Prepare user manuals and conduct a one -day training session for up to four (4) City staff. 8. Assist Staff in the development and execution of a Public Involvement Plan with the LRRC. RGA will lead all meetings and have responsibility for the preparation of all materials. Agenda and materials will be reviewed with Staff prior to each meeting. A total of five (5) LRRC meetings are planned as part of the Public Involvement Plan; three as part of this task and one each in Task 1 and Task 4. 9. Prepare for and lead meetings, briefings and formal presentations, with the LWAC, City Council and the LRRC. This task includes meetings as requested by the City and not specifically listed as part of the other task items listed in this Attachment. 10. Provide other services as requested by the City. Resolution No. 2004-RO102 ATTACHMENT B 2004 WATER AND SEWER RATE STUDY Preliminary Project Schedule Tasks March April May June July August 1. LRRC Goal Setting SessionC 2. Financial Plan 3. Cost of Service Study 77 4. Alternative Rates - LRRC Meeting (1) 5. Draft and Final Reports Draf Final 6. LWAC (1) and City Council (3) Meetings to Present Findings 7. Model Documentation and Staff ■ Training (1) S. Public Involvement Strategy - LRRC Meetings (3) T 7+C LRRC Meeting LWAC/Council Meetings Staff Meeting Project Cost ATTACHMENT C 2004 Rate Study Resolution No. 2004-RO102 The not -to -exceed cost for the 2004 Water and Sewer Rate Study is $124,375. The attached Not -To -Exceed Cost is based on the Scope of Services described in Attachment A (items 1 through 8) and the hourly rates as listed below: Rick Giardina, President $180 Joel Theis, Manager $135 Kevin Burnett, Senior Consultant $110 Andrew Rheem, Consultant $95 Word Processing / Administration $40 These rates will remain in effect for the duration of this contract. Contractor's rates may be increased for services requested by the City after the expiration of this contract. The estimated cost to prepare for and attend meetings not listed in the Cost Estimate is $5,000 per meeting. This includes all expenses and preparation and presentation time. 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Expenses Total No. Service Description Giardina Manager Consultant Consultant & Admin. Total Fees Other Travel Project () number of formal meetings $180 $135 $110 $95 $40 Hours (a) (b) Cost 1 LRRC Goal Setting Session (1) 12 16 8 6 42 $5,440 $710 $800 $6,950 2 Financial Plan 8 34 68 6 116 $13,750 $580 $800 $15,130 3 Cost of Service Study 10 38 76 4 128 $15,450 $640 $800 $16,890 4 Alternative Rates — LRRC Meeting 34 64 46 40 16 206 $24,500 $1,530 $2,600 $28,630 5 Draft and Final Reports 16 40 34 28 118 $13,140 $1,590 $1,000 $15,730 6 LWAC (1) and City Council (3) 48 16 8 12 84 $12,160 $920 $4,800 $17,880 Meetings to Present Findings Model) Development and Staff Training 7 2 16 36 16 70 $7,120 $600 $800 $8,520 Public Involvement Plan — LRRC 8 30 20 8 15 73 $9,580 $1,115 $3,950 $14,645 Meetings (3) TOTAL - 2004 SERVICES 160 244 284 40 103 837 $101,140 $7,685 $15,550 $124,375 (a) Includes telephone charges, computer time, regular and express mail, etc. (b) Includes airfare, hotel, or rental car expenses, etc.