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Home My WebLink About16050 ORD - 02/18/1981vp:2/16/81:1st AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH BLACK & VEATCH CONSULTING ENGINEERS FOR UPDATING OF THE WATER RATE STUDY MADE BY THE FIRM IN 1977 AT A COST NOT TO EXCEED $20,000, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO, MARKED EXHIBIT "A", AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be authorized to execute a con- tract with Black & Veatch Consulting Engineers for updating of the water rate study made by the firm in 1977, at a cost not to exceed $20,000, a substantial copy of which is attached hereto, marked Exhibit "A", and made a part hereof. SECTION 2. The necessity to authorize execution of the aforesaid contract at the earliest practicable date creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor, having declared that such emergency and necessity exist, having requested the suspension of the Charter rule and that this ordinance be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the )beday of February, 1981. ATTEST: CiteS cretary APPROVED: /7 7 DAY OF FEBRUARY, 1981: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant Cit 16050 MAYOR THE COF CORPUS CHRISTI, TEXAS WNW ED SEP 271984 f BLACK & VEATCH TEL. (913) 967-2000 CONSULTING ENGINEERS TELEX 42-6263 1500 MEADOW LAKE PARKWAY KANSAS^ CITY, g,MISSOURI 64114 CONTRACT FOR ENGINEERING SERVICES THIS CONTRACT, made and entered into this day of 1981, by'and between the City of Corpus Christi, Texas, hereinafter called the City, party of the first part, and Black & Veatch, Consulting Engineers, of Kansas City, Missouri, hereinafter called the Engineers, party of the second part; WITNESSETH: That in consideration of the mutual covenants herein contained, the City hereby agrees to employ the Engineers to perform engineering services hereinafter set forth, and the City hereby agrees to pay the Engineers for said engineering services according to the schedule of fees herein specififed. SECTION I. The services which the Engineers agree to perform comprise the preparation of a financial feasibility study to determine the ability of the Corpus Christi Water Division to meet the needs of current and projected operations and the debt service on a proposed revenue bond issue. Said studies shall include the following: 1. Review the capital improvement program prepared by the City and determine additional indicated capital funding needs over the next five years, including the proposed current bond offerings. 2. Compare actual operations for the fiscal years ending July 31, 1977, 1978, 1979 and 1980 with projections made as a part of the Report on Water Rates dated July 29, 1977. Determine the extent and reasons for variations from projected results. 3. Review and summarize existing data and studies currently in progress to reflect water source availability, quality and condition to meet current and future needs of the City. 4. Project future water revenues under existing rates. 5. Review historical and project future operation and maintenance expenses, taking into consideration factors which may influence future expense levels, such as operational changes and inflation. 1 f OLAC•K & VEATCH 6. Project other revenue obligations of the water system. Such obligations will include existing debt service, reserve fund requirements, routine capital additions and replacements to be financed by revenues and any other cash obligations that must be paid from revenues. 7. Evaluate the ability of projected revenues under existing rates to meet projected obligations. This shall include an estimated future cash flow statement and projected net revenues (revenues less operation and maintenance expenses) for the system operations. 8. The information developed as a part of the study will be summarized in a report or letter report which will be suitable for inclusion in an Offering Statement to be prepared by others for the proposed sale of revenue bonds. A draft of the report will be presented to the City for their review and comment, prior to finalization and publication. The final report will be submitted in original copy form suitable for direct reproduction by others. 9. On the basis of Items 5 and 6 above, allocate the revenue requirements to cost of service components for the fiscal year ending July 31, 1982 in sufficient detail to determine the cost of raw water. 10. Develop customer characteristics and usage in sufficient detail to establish projected requirements for raw water for the fiscal year ending July 31, 1982. 11. From the data established in Items 9 and 10 above establish a schedule of raw water rates that will meet expected costs. 12. Provide a letter summarizing the results of the studies related to raw water costs. SECTION II. It is mutually understood and agreed that the City will provide, at its own expense, the following items: 1. All maps, plans, records, statistical and financial data, reports by others, etc. which are related to the water utility and deemed useful in the work involved under this contract. 2. Capital improvement program for the water utility. Such program should be for a minimum of the next five years, if possible, and should describe each improvement item, its expected date of construction and estimated cost. 3. Policy direction on such matters as the City considers appropriate. 2 OLAC.K & V EATCH 4. Arrange for a conference, at a mutually agreeable time, with staff and other firms to discuss status of reports, studies and the water utility. 5. Debt service schedules for the proposed revenue bonds and any other indicated future debt shall also be provided by the City as may be developed and recommended by others. SECTION III. For all the services set forth in Section I, the City agrees to pay the Engineers a fee equal to the sum of (1) twice payroll costs, which consists of salaries, and twanty—five (25) per cent direct payroll overhead, of all personnel charges to the work and (2) all direct expenses at actual cost, including travel and subsistence away from the Kansas City office, long distance telephone, reproduction, and similar expenses. The fee for the financial feasibility study and development of raw water rates as outlined in Section I, so computed shall not exceed Twenty Thousand Dollars ($20,000). Statements for work performed shall be made on a monthly basis. Work in addition to that outlined in Section I may be performed by the Engineers upon written authorization of the City. In such an event, the fee for such work shall be on the basis stated above, except that it will not be included within the maximum limit. Such extra work specifically includes conferences, meetings and appearances after final completion and presentation to the City, or any meeting that may be required with bond rating agencies. SECTION IV. The City may at any time, with or without cause terminate this agreement by giving the Engineers notice in writing. In the event this agreement is terminated, the Engineer shall be compensated for the services rendered up to the time termination notice is received and upon delivery to the City of all work completed. SECTION V. The Engineer shall not assign, sublet or transfer any of his obligations or duties under this contract to any other persons without the prior written consent of the City. SECTION VI. The Engineers recognize that the City desires to issue water revenue bonds as soon as possible and that the feasibility report must be available in a timely manner. Based upon immediate authorization by the City, the Engineers agree to provide data and information in a preliminary form by March 2, 1981 and such other feasibility study material (Items 1 through 8, Section I) as may be required from time to time to meet a projected bond sale date of April 22, 1981. Results of the study of raw water rates will also be provided in a timely manner, with results to be finalized within 60 days after receipt of authorization to proceed. 3 BLACK & VEATCH IN WITNESS WHEREOF, the parties of the first and second parts have hereunto set their hands and seals on the date first above written. CORPUS CHRISTI, TEXAS BLACK & VEATCH, Consulting Engineers Party of the First Part Party of the Second Part By Attest: (SEAL) APPROVED: By DAY OF , 1981: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney »7 &athead 4 Ronald D. Hardten Corpus Christi, T xas a day of , 19S TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally,on the date it is introduced, or at the present meeting of the City Council. Respectfully, MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspend-• by the following vote: Luther Jones •' -Edward L. Sample / Dr. Jack Best 409, _ Jack K. Dumphy Leopoldo Luna / , Betty N. Turner Cliff Zarsky 1 The above ordinance was passed Luther Jones Edward L. Sample Dr. Jack Best Jack K. Dumphy Leopoldo Luna Betty N. Turner Cliff Zarsky by 1 /r the following vote: 16050