HomeMy WebLinkAboutResolution - 2006-R0305 - Second Amendment To Contract - Malcolm Pirnie Inc. - 06/26/2006Resolution No. 2006-RO305
June 26, 2006
Item No. 5.10
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 Second Amendment of
Contract, between the City of Lubbock and Malcolm Pirnie, Inc. Said Second
Amendment to 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 26th
ATTEST:
Reb cca Garza, City Secretary
APPROVED AS TO CONTENT:
mamas Adams
Deputy City Manager
APPROVED AS TO FORM:
Richard K. Casner
First Assistant City Attorney
ml/ccdocs/Pirnie-2 amend.res
June 16, 2006
day of
.Tune 2006.
DAVID A. MILLER, MAYOR 7
Resolution No. 2006-RO305
June 26, 2006
Item No. 5.10
Second Amendment of Contract
This Second Amendment of Contract ("Second Amendment") is entered into this 81h day
of June, 2006, by and between the City of Lubbock, Texas (the "City"), a Texas home
rule municipal corporation and Malcolm Pirme, 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-RO102, 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;
WHERAS, the City consented to such assignment as evidenced by its Resolution dated
the 13th day of January, 2005, Resolution No. 2005-R0021;
WHEREAS, the Original Contract was amended by that certain Amendment of Contract
dated on or about January 13, 2005 (the "First Amendment"), Resolution No. 2005-
R0022, providing for the performance of additional services and other matters as set forth
therein;
WHEREAS, the City now desires that Contractor perform additional services under the
Original Contract, as amended by the First Amendment;
WHEREAS, Contractor desires additional compensation for such additional services; and
WHEREAS, the City and Contractor now desire to amend the Original Contract, as
amended by the First Amendment, 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, Attachment D — Additional
Scope of Work and Attachment E — Second Additional Scope of Work.
Second Amendment of Contract - Page 1 of 7
The Contractor's services shall include those services that are identified by
the City.
B. The draft Executive report for items set forth in Attachment A — Scope of
Work and Attachment D — Additional Scope of Work will be delivered 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. The draft report prepared for items set forth in Attachment E —
Second Additional Scope of Work, will be delivered to the City no later
than August 16, 2006. The meetings and delivery of the final report to
City shall be as described on Attachment E — Second Additional Scope of
Services.
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 25th and
the morning of January 26th. 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
two hundred four thousand, eight hundred and seventy-five dollars ($204,875), 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 March 31, 2007.
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.
Second Amendment of Contract - Page 2 of 7
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 E — Second Additional Scope of
Work, as attached hereto.
6. The Contract, as amended by the First Amendment, except as expressly amended
hereby, shall remain in force and effect as originally provided.
7. The (i) expiration date set forth in Article 4; (ii) the delivery date of the draft
report set forth in Article I.B.; and (iii) the meeting dates set forth in Attachment
E herein are based upon certain budget information being furnished to Contractor
by City on or before June 21, 2006. In the event the furnishing of such
information by City is delayed, the delivery and meeting dates set forth herein
shall be extended the identical number of days of the delay.
MALCOLM PIRNIE, INC.
�WQ
By
�'►' t
Richard D. Giardina, Vice President
Second Amendment of Contract - Page 3 of 7
CITY OF LUBBOCK
By
David A. Miller, Mayor
ATTEST:
Re cca Garza, City Secretary
APPROVF) AS TO CONTENT:
Adams, Deputy City Manager
APPROVED AS TO FORM:
Richard K. Casner, First Assis ant City Attorney
Second Amendment of Contract - Page 4 of 7
Attachment C
The not -to -exceed cost for the services contemplated by this Contract, as amended by this
Second Amendment to Contract, is two hundred four thousand, eight hundred and
seventy-five dollars ($204,875). 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:
Principal Consultant $275 per hour
Senior Consultant $198 per hour
Junior Consultant $149 per hour
Specialist $125 per hour
Support Staff $ 85 per hour
These rates will remain in effect for the duration of this Contract, as amended by the First
Amendment and this Second 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 First Amendment and this Second Amendment to Contract. In no event
shall the charge to the City for the services described in Article 1. Statement of Work
exceed two hundred four thousand, eight hundred and seventy-five dollars ($204,875).
Second Amendment of Contract - Page 5 of 7
Attachment E — Second Additional Scope of Services
Task 1 — Project Initiation. Contractor will conduct a kick-off meeting with the City on
or before May 1, 2006, to discuss and clarify the project objectives, schedule,
deliverables, and communication protocols.
Task 2 — Revenue Requirements and Cost of Service Update. Contractor will use the
City's most recently approved budget data to determine the revenue requirements. The
cost of service model developed by Rick Giardina & Associates, Inc. will be updated
with the new revenue requirements, and the financial plan will be reviewed and updated
as necessary to reflect the latest budget and capital improvement plan.
Task 3 — Rate Development. Using the revenue requirements from Task 2, Contractor
will determine the rate design alternatives for each customer class. The rate design
alternatives will include the following scenarios:
Static monthly connection fees for all customer classes (the connection fee is the
monthly charge to all accounts that varies by meter size; it does not include a
water usage allowance.)
Cost of service -based monthly connection fees for all customer classes.
For each of the connection fee alternatives, base rates under the Average Winter
Consumption (AWC) approach will be prepared (the base rate is the volume or
commodity charge assessed to each account based on metered water use).
As part of this task, Contractor will perform a price elasticity analysis to determine the
estimated impact of the rate design alternatives on demand. The price elasticity analysis
will identify the potential for revenue loss as well as the impact of conservation on the
proposed Lake Alan Henry project. In addition to the price elasticity analysis, we will
develop a bill impact analysis of each rate alternative for each customer class. The rate
alternative and customer impact results will be presented to City staff in a workshop, to
be conducted on or before July 26, 2006, for discussion and selection of the
recommended rate structure.
Task 4 — Report Preparation and Public Presentation. Contractor will develop a
report detailing the rate update process, alternatives, and resulting recommendations. The
report will include an executive summary, data references, cost of service methodology,
rate design development and alternatives, recommended rate structure, and customer bill
impacts. Contractor will meet with City staff on or before August 16, 2006, to present
the study results, and five (5) copies of the draft report will be provided at that meeting.
City comments will be addressed and 15 copies of the final report will be provided to the
City within two weeks of receipt of the comments. Contractor will present the results of
the rate update to the Lubbock Rate Review Committee, Lubbock Water Advisory
Commission and the City Council.
Task 5 — Public Relations Assistance. Contractor will assist City staff with the
development of public notification materials and information regarding the proposed rate
Second Amendment of Contract - Page 6 of 7
structure. Contractor will present the proposed rate design at a Public Meeting at a
mutually agreed upon date and time.
The compensation described in Article 2 includes travel, meals and all expenses of
Contractor and includes five (5) face-to-face meetings, two of which would be a formal
presentation to the City Council and/or the public.
ml/CITYATT/RICHARD/Second Amendment of Contract — Pimie-rdin accept
June 7, 2006
Second Amendment of Contract - Page 7 of 7