HomeMy WebLinkAboutC2017-106 - 3/7/2017 - NA , t
CITY OF CORPUS CHRISTI
CONTRACT FOR PROFESSIONAL SERVICES
FOR PROJECT E17009 UTILITIES RATE MODEL UPDATE FY 2018
The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi,
Nueces County, Texas 78469-9277 (City)acting through its duly authorized City Manager or Designee
(Director) and HDR Engineering, Inc. a Nebraska corporation, 4401 West Gate Boulevard, Suite 400,
Austin, Texas 78745, (Consultant), hereby agree as follows:
TABLE OF CONTENTS
ARTICLE NO. TITLE PAGE
ARTICLE I SCOPE OF SERVICES 2
ARTICLE II QUALITY CONTROL 2
ARTICLE III COMPENSATION 3
ARTICLE IV TIME AND PERIOD OF SERVICE 4
ARTICLE V OPINIONS OF COST 4
ARTICLE VI INSURANCE REQUIREMENTS 5
ARTICLE VII INDEMNIFICATION 5
ARTICLE VIII TERMINATION OF AGREEMENT 5
ARTICLE IX RIGHT OF REVIEW AND AUDIT 6
ARTICLE X OWNER REMEDIES 7
ARTICLE XI CONSULTANT REMEDIES 7
ARTICLE XII CLAIMS AND DISPUTE RESOLUTION 8
ARTICLE XIII MISCELLANEOUS PROVISIONS 9
EXHIBITS
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HDR Engineering Inc.
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ARTICLE I—SCOPE OF SERVICES
1.1 The Consultant shall provide to Engineering Services its Scope of Services,to be incorporated herein and
attached to this Agreement as Exhibit A. The Scope of Services shall include all associated services required for
Consultant to provide such Services, pursuant to this Agreement,and any and all Services that would normally be
required by law or common due diligence in accordance with the standard of care defined in Article XIII of this
Agreement.
1.2 Consultant shall comply with City standards,as specified in the Unified Development Code(UDC)or Code
of Ordinances at the time of the execution of the contract,throughout the duration of the Project,unless specifically
and explicitly excluded from doing so in the approved Scope of Services attached as Exhibit A. A request made by
either party to deviate from City standards after the contract is executed must be in writing.
1.3 Consultant shall provide labor,equipment and transportation necessary to complete all services agreed to
hereunder in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform
work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City
with a list of all subconsultants that includes the services performed by subconsultant and the%of work performed
by subconsultant. Changes in Consultant's team that provides services under this Agreement must be agreed to by
the City in writing.
1.4 Consultant shall not begin work on any phase/task authorized under this Agreement until they are briefed on
the scope of the Project and are notified in writing to proceed. If the scope of the Project changes, either
Consultant or City may request a review of the changes with an appropriate adjustment in compensation.
1.5 Consultant will provide monthly status updates(project progress or delays)in the format requested by the
City with each monthly invoice.
1.6 For design services,Consultant agrees to render the professional services necessaryforthe advancement
of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its
responsibilities, as defined and described in City's General Conditions for Construction Contracts.
1.6.1 The Consultant agrees to serve as the City's Designer as defined in the General Conditions and will
consult and advise the City on matters related to the Consultant's Scope of Services during the performance
of the Consultant's services.
1.6.2 The Consultant agrees to prepare plans,specification, bid and contract documents and to analyze
bids and evaluate the documents submitted by bidders in order to make an informed, written
recommendation to City concerning the responsibilities of the lowest bidders. In determining a bidder's
responsibilities,factors considered include,without limitation,the bidder's experience,capacity,supervision,
ability to maintain project budget and schedule, past performance and safety record.
ARTICLE II —QUALITY CONTROL
2.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews(QCP Review).
The City reserves the right to retain a separate consultant to perform additional QCP services for the City.
2.2 The Consultant will perform QCP Reviews at intervals during the Project to ensure deliverables satisfy
applicable industry quality standards and meet the requirements of the Project scope. Based on the findings of the
QCP Review, the Consultant must reconcile the Project Scope and the Opinion of Probable Cost (OPC), as
needed.
2.3 Final construction documents that do not meet City standards may be rejected. Consultant will not be
compensated for having to resubmit documents.
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ARTICLE III—COMPENSATION
3.1 The Compensation for all services (Basic and Additional) included in this Agreement and in the Scope of
Services for this Agreement shall not exceed $49,740.
3.2 The Consultant's fee will be on a lump sum or time and materials(T&M)basis as detailed in Exhibit A and
will be full and total compensation for all services and for all expenses incurred in performing these services.
3.3 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule
and budget as defined in Exhibit A, including completing the work in phases defined therein..
3.4 The Director of Engineering Services may request the Consultant to undertake additional services or tasks
provided that no increase in fee is required. Services or tasks requiring an increase of fee will be mutually agreed
and evidenced in writing as an amendment to this contract. Consultant shall notify the City within three(3)days of
notice if tasks requested requires an additional fee.
3.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit B. Each
invoice will include the Consultant's estimate of the proportion of the contracted services completed at the time of
billing. For work performed on a T&M Basis,the invoice shall include documentation that shows who worked on the
Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any
reimbursable expenses associated with the work. City will make prompt monthly payments in response to
Consultant's monthly invoices.
3.6 Principals may only bill at the agreed hourly rate for Principals (as defined in the Rate Schedule) when
acting in that capacity. Principals acting in the capacity of staff must bill at applicable staff rates.
3.7 Consultant certifies that title to all services covered by a Payment Request shall pass to City no later than
the time of payment. Consultant further certifies that, upon submittal of a Payment Request,all services for which
Payment Requests have been previously issued and payments received from City shall,to the best of Consuftant's
knowledge,information and belief,be free and clear of liens,claims,security interests or encumbrances in favor of
Consultant or other persons or entities making a claim by reason of having provided labor or services relating to this
Agreement. CONSULTANT SHALL INDEMNIFY AND HOLD CITY HARMLESS FROM ANY LIENS, CLAIMS,
SECURITY INTERESTS OR ENCUMBRANCES FILED BY ANYONE CLAIMING BY,THROUGH OR UNDER THE
ITEMS COVERED BY PAYMENTS MADE BY CITY TO CONSULTANT.
3.8 The final payment due hereunder shall not be paid until all reports, data and documents have been
submitted, received, accepted and approved by City. Final billing shall indicate "Final Bill — no additional
compensation is due to Consultant."
3.9 City may withhold compensation to such extent as may be necessary, in Citys opinion,to protect City from
damage or loss for which Consultant is responsible, because of:
3.9.1 delays in the performance of Consultant's work;
3.9.2 failure of Consultant to make payments to subconsultants or vendors for labor, materials or
equipment;
3.9.3 damage to City; or
3.9.4 persistent failure by Consultant to carry out the performance of its services in accordance with this
Agreement.
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3.10 When the above reasons for withholding are removed or remedied by Consultant, compensation of the
amount withheld shall be made within 30 days. City shall not be deemed in default by reason of withholding
compensation as provided under this Agreement.
3.11 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any
phase or as final compensation or regarding any amount that may be withheld by City,Consultant shall be required
to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided
herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures
as required by the terms of this Agreement, any such claim shall be waived.
3.12 Request of final compensation by Consultant shall constitute a waiver of claims except those previously
made in writing and identified by Consultant as unsettled at the time of final Payment Request.
3.13 All funding obligations of the City under this Agreement are subject to the appropriation of funds in its annual
budget. The City may direct the Consultant to suspend work pending receipt and appropriation of funds.
ARTICLE IV—TIME AND PERIOD OF SERVICE
4.1 This Agreement shall be effective upon the signature of the City Manager or designee(Effective Date).
/1.2 This service shall bo for a period of yoars boginning on tho Effoctivo Dato. Tho Agrcomont may bo
4.3 The Consultant agrees to begin work on those authorized Services for this contract upon receipt of the
Notice to Proceed from the Director of Engineering Services. Work will not begin on any phase or any Additional
Services until requested in writing by the Consultant and written authorization is provided by the Director of
Engineering Services.
4.4 Time is of the essence for this Agreement. Consultant shall perform and complete its obligations under this
Agreement in a prompt and continuous manner so as to not delay the Work for the Project, in accordance with the
schedules approved by City. The Consultant and City are aware that many factors may affect the Consultant's
ability to complete the services to be provided under this agreement. The Consultant must notify the City within
three business days of becoming aware of a factor that may affect the Consultant's ability to complete the services
hereunder.
4.5 City shall perform its obligations of review and approval in a prompt and continuous manner so as to not
delay the project.
4.6 This Agreement shall remain in force for a period which may reasonably be required for completion of the
Project, including any extra work and any required extensions thereto, unless terminated as provided for in this
Agreement. For construction design services, "completion of the Project" refers to acceptance by the City of the
construction phase of the Project, i.e., Final Completion.
ARTICLE V OPINIONS OF COST
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of the City.
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ARTICLE VI — INSURANCE REQUIREMENTS
6.1 Consultant must not commence work under this Agreement until all insurance required has been obtained
and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence
work until all similar insurance required of any subcontractor has been obtained.
6.2 Insurance Requirements are shown in EXHIBIT C.
ARTICLE VII — INDEMNIFICATION
Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials,
officers, agents, employees or other entity, excluding the engineer or architect or that person's
agent,employee or subconsultant,over which the City exercises control("Indemnitee")from and
against any and all claims, damages, liabilities or costs, including reasonable attorney fees and
court costs, to the extent that the damage is caused by or results from an act of negligence,
intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier
committed by Consultant or its agent, Consultant under contract or another entity over which
Consultant exercises control while in the exercise of rights or performance of the duties under
this agreement. This indemnification does not apply to any liability resulting from the negligent
acts or omissions of the City or its employees, to the extent of such negligence.
Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and
against any and all claims, damages, liabilities or costs, including reasonable attorney fees and
court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of
contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or
breach of contract by Indemnitee,the Consultant shall reimburse the City's reasonable attorney's
fees in proportion to the Consultant's liability.
Consultant must advise City in writing within 24 hours of any claim or demand against City or
Consultant known to Consultant related to or arising out of Consultant's activities under this
Agreement.
ARTICLE VIII—TERMINATION OF AGREEMENT
8.1 By Consultant:
8.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience
of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this
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Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days
by delivering a Notice of Termination to the City.
8.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement.
8.2 By City:
8.2.1 The City may terminate this agreement for convenience upon seven days written notice to the
Consultant at the address of record.
8.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If
Consultant begins,within three days of receipt of such notice,to correct its failure and proceeds to diligently
cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to
perform under this agreement, the City may terminate the agreement for cause upon seven days written
notice to the Consultant with no additional cure period. If the City terminates for cause,the City may reject
any and all proposals submitted by Consultant for up to two years.
8.3 Termination Procedure
8.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the
notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period,
Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the
performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless
Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in
detail the services performed under this Agreement prior to the effective date of termination. City retains the
option to grant an extension to the time period for submittal of such statement.
8.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement,
including but not limited to specifications, designs, plans and exhibits.
8.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City
may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time&
Materials calculation or Consultant and City's estimate of the proportion of the total services actually
completed at the time of termination. There will be no compensation for anticipated profits on services not
completed.
8.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of
public funds. The failure of Consultant to comply with the submittal of the statement and documents, as
required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for
services performed under this Agreement.
ARTICLE IX— RIGHT OF REVIEW AND AUDIT
9.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City's election, all of
Consultant's records relating to the performance of the Work under this Agreement, during the term of this
Agreement and retention period herein. The audit,examination or inspection may be performed by a City designee,
which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its
records for a minimum of four(4)years following termination of the Agreement,unless there is an ongoing dispute
under this Agreement,then such retention period shall extend until final resolution of the dispute.
9.2 Consultant's records include any and all information, materials and data of every kind and character
generated as a result of and relevant to the Work under this Agreement(Consultant's Records). Examples include
billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting
notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily
diaries,reports,drawings,receipts,vouchers, memoranda,time sheets, payroll records,policies, procedures,and
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any and all other agreements, sources of information and matters that may, in City's and Consultant's reasonable
judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any
Agreement Documents.
9.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant's Records only during
Consultant's regular business hours. Consultant agrees to allow City's designee access to all of Consultant's
Records,Consultant's facilities and Consultant's current employees,deemed necessary by City or its designee(s),
to perform such audit,inspection or examination. Consultant also agrees to provide adequate and appropriate work
space necessary to City or its designees to conduct such audits, inspections or examinations.
9.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract.
ARTICLE X—OWNER REMEDIES
10.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to
pursue its actual damages and any other remedy allowed by law. This includes but is not limited to:
10.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful
completion of the Project, which includes failure of subconsultants to meet contractual obligations;
10.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal
governments,such that subsequent compliance costs exceed expenditures that would have been involved
had services been properly executed by the Consultant.
10.1.3 Losses are incurred because of errors and/or omissions in the design, working drawings,
specifications or other documents prepared by the Consultant to the extent that the financial losses are
greater than the City would have originally paid had there not been errors and/or omissions in the
documents.
10.2 The City may assert a claim against the Consultant's professional liability insurance as appropriate when
other remedies are not available or offered for design deficiencies discovered during and after Project construction.
10.3 When the City incurs non-value added work costs for change orders due to design errors and/or omissions,
the City will send the Consultant a letter that includes:
(1) Summary of facts with supporting documentation;
(2) Instructions for Consultant to revise design documents, if appropriate, at Consultant's expense;
(3) Calculation of non-value added work costs incurred by the City; and
(4) Deadline for Consultant's response.
10.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant's
sole cost if,in the City's judgment,the Consultant generates excessive addenda,either in terms of the nature of the
revision or the actual number of changes due to the Consultant's errors or omissions.
10.5 The City may withhold or nullify the whole or part of any payment as detailed in Article III.
ARTICLE XI—CONSULTANT REMEDIES
11.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national
emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond
Consultant's and City's reasonable control,an extension of the Project schedule in an amount equal to the time lost
due to such delay shall be Consultant's sole and exclusive remedy. The revised schedule should be approved in
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writing with a documented reason for granting the extension.
11.2 The City agrees that the Consultant is not responsible for damages arising from any cause beyond
Consultant's reasonable control.
11.3 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as
provided in this Agreement.
ARTICLE XII—CLAIMS AND DISPUTE RESOLUTION
12.1 Filing of Claims
12.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events,
shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one
(21)calendar days after the start of the occurrence or event giving rise to the Claim and stating the general
nature of the Claim.
12.1.2 Every Claim of Consultant,whether for additional compensation,additional time or other relief,shall
be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the
truth and accuracy of the Claim.
12.1.3 The responsibility to substantiate a claim rests with the party making the Claim.
12.1.4 Within thirty(30)calendar days of receipt of notice and supporting documentation,City will meet to
discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to
Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30)
calendar days in which to(i) submit additional supporting data requested by the City, (ii) modify the initial
request for remedy or(iii) request Mediation.
12.1.5 Pending final resolution of a claim,except as otherwise agreed in writing,Consultant shall proceed
diligently with performance of the Agreement,and City shall continue to make payments in accordance with
this Agreement.
12.2 Mediation
12.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and
settlement negotiations for purposes of applicable rules of evidence.
12.2.2 Before invoking mediation,the Parties agree that they shall first try to resolve any dispute arising out
of or related to this Agreement through discussions directly between those senior management
representatives within their respective organizations who have overall managerial responsibility for similar
projects. This step shall be a condition precedent to the use of mediation. If the parties' senior
management representatives cannot resolve the dispute within thirty (30) calendar days after a Party
delivers a written notice of such dispute, then the Parties shall proceed with the mediation process
contained herein.
12.2.3.1 In the event that City or Consultant shall contend that the other has committed a material
breach of this Agreement,the Party alleging such breach shall,as a condition precedent to
filing any lawsuit, request mediation of the dispute.
12.2.3.2 Request for mediation shall be in writing,and shall request that the mediation commence
no less than thirty(30) or more than ninety (90) calendar days following the date of the
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request, except upon agreement of both parties.
12.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the
identity of the mediator or mediators within thirty (30) calendar days of the request for
mediation, all conditions precedent in this Article shall be deemed to have occurred.
12.2.3.4 The parties shall share the mediator's fee. Venue for mediation shall be Nueces County,
Texas. Any agreement reached in mediation shall be enforceable as a settlement
agreement in any court having jurisdiction thereof. No provision of this Agreement shall
waive any immunity or defense. No provision of this Agreement is a consent to suit.
12.3 In calculating the amount of any Claim or any measure of damages for breach of contract, the following
standards shall apply both to claims by Consultant and to claims by City:
12.3.1 In no event shall either Party be liable,whether in contract or tort or otherwise,to the other Party for
loss of profits, delay damages or for any special incidental or consequential loss or damage of any nature
arising at any time or from any cause whatsoever;
12.3.2 Damages are limited to extra costs specifically shown to have been directly caused by a proven
wrong for which the other Party is claimed to be responsible.
12.4 In case of litigation between the parties,Consultant and City agree that neither party shall be responsible for
payment of attorney's fees pursuant to any law or other provision for payment of attorneys' fees. Both Parties
expressly waive any claim to attorney's fees should litigation result from any dispute between the parties to this
Agreement.
12.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO
WAIVE CITY'S GOVERNMENTAL IMMUNITY FROM LAWSUIT,WHICH IMMUNITY IS EXPRESSLY RETAINED
TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW.
ARTICLE XIII —MISCELLANEOUS PROVISIONS
13.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this
Agreement contract to any other person and/or party without the prior written consent of the other party,except for
routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services
under this Agreement. If the Consultant is a partnership or joint venture,then in the event of the termination of the
partnership or joint venture,this contract will inure to the individual benefit of such partner or partners as the City
may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without
written consent of the City.
The City will not pay the fees of expert or technical assistance and consultants unless such employment,including
the rate of compensation, has been approved in writing by the City.
13.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all
information in whatsoever form and character produced and/or maintained in accordance with,pursuant to or as a
result of this Agreement, including contract documents (plans and specifications), drawings and submittal data.
Consultant may make a copy for its files. Any reuse by the City,without specific written verification or adaptation by
Consultant,shall be a City's sole risk and without liability or legal exposure to Consultant. The City agrees that any
modification of the plans will be evidenced on the plans and be signed and sealed by a licensed professional prior
to re-use of modified plans.
13.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the
professional skill and care ordinarily provided by competent licensed professionals practicing in the same or similar
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locality and under the same or similar circumstances and professional license;and performed as expeditiously as is
prudent considering the ordinary professional skill and care of a competent engineer or architect.
13.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or
certification(s)at meetings of any official nature concerning the Project,including scope meetings,review meetings,
pre-bid meetings and preconstruction meetings.
13.5 Entire Agreement. This Agreement represents the entire and integrated Agreement between City and
Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This
Agreement may be amended only by written instrument signed by both the City and Consultant.
13.6 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and
complete the Disclosure of Interests form, attached as Exhibit D.
13.7 Certificate of Interested Parties. For contracts greater than $50,000, Consultant agrees to comply with
Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this
agreement,attached as Exhibit-E. Form 1295 requires disclosure of"interested parties"with respect to entities that
enter contracts with cities that exceed $50,000. These interested parties include:
(1) persons with a"controlling interest" in the entity,which includes:
a. an ownership interest or participating interest in a business entity by virtue of units,percentage,shares,
stock or otherwise that exceeds 10 percent;
b. membership on the board of directors or other governing body of a business entity of which the board or
other governing body is composed of not more than 10 members; or
c. service as an officer of a business entity that has four or fewer officers, or service as one of the four
officers most highly compensated by a business entity that has more than four officers; or
(2) a person who actively participates in facilitating a contract or negotiating the terms of a contract with a
governmental entity or state agency, including a broker, intermediary, adviser or attorney for the business
entity.
Form 1295 must be electronically filed with the Texas Ethics Commission at
https:/lwww.ethics.state.tx.us/whatsnew/elf info_formI295.htm. The form must then be printed, signed,
notarized and filed with the City. For more information, please review the Texas Ethics Commission Rules at
https://www.ethics.state.tx.us/legal/ch46.html.
13.8 Conflict of Interest. Consultant agrees, in compliance with Chapter 176 of the Texas Local Government
Code,to complete and file Form CIQ with the City Secretary's Office. For more information and to determine if you
need to file a Form CIQ, please review the information on the City Secretary's website at
http://www.cctexas.com/government/city-secretary/conflict-disclosure/index.
13.9 Controlling Law. This Agreement is governed by the laws of the State of Texas without regard to its conflicts
of laws. Venue for legal proceedings lies exclusively in Nueces County,Texas. Cases must be filed and tried in
Nueces County and cannot be removed from Nueces County.
13.10 Severability. If, for any reason, any one or more Articles and/or paragraphs of this Agreement are held
invalid or unenforceable, such invalidity or unenforceability shall not affect, impair or invalidate the remaining
Articles and/or paragraphs of this Agreement but shall be confined in its effect to the specific Article, sentences,
clauses or parts of this Agreement held invalid or unenforceable,and the invalidity or unenforceability of any Article,
sentence, clause or parts of this Agreement, in any one or more instance,shall not affect or prejudice in any way
the validity of this Agreement in any other instance.
13.11 Conflict Resolution Between Documents. Consultant hereby agrees and acknowledges if anything
contained in the Consultant-prepared Exhibit A, Consultant's Scope of Services, or contained in any other
document prepared by Consultant and included herein,is in conflict with this Agreement,this Agreement shall take
precedence and control to resolve said conflict.
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CITY OF CORPUS CHRISTI HDR ENGINEERING, INC.
Margie C.Rose Date aloi?7', '.E. Date
City Manager ,: i. Vice •res' :nt
•01 We Gate Boulevard,Suite 400
Austin, T4xas 78745
(512)912-5100 Office
d-z2"
3 3 i7 (512)912-5158 Fax
Mark Van Vleck to
Assistant,City M.n-!er
5 41/ 7
V- .rie Gray, -.E. 3►- [7 Oat
Executive Di ; Publi• W% s
APPROVED AS TO LEGAL FORM
9MA4 /gyp 2017.02.2408:26:35
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Assistant City Attorney Date
Project Name Utilities Rate Model Update FY 2018
Project Number E17009
Total Contract Amount$49,740
Accounting Unit 4010-30003-701 Accounting Unit 4200-33000-042
Account 530000 Account 530000
Activity E17009-01-4010-EXP Activity E17009-01-4200-EXP
Account Category 30000 Account Category 30000
Fund Name Water Operating Fund Name Wastewater Operating
Amount 512.435 Amount 512,435
Accounting Unit 4130-34000-022 Accounting Unit 4300-32006-043
Account 530000 Account 530000
Activity E17009-01-4130-EXP Activity El 7009-01-4300-EXP
Account Category 30000 Account Category 30000
Fund Name Gas Operating Fund Name Storm Water Operating
Amount$12,435 Amount$12,435
Page 11 Rev 02/17
KIENGINEERING DATAE%CMANGELENNIFERSWATER1E17009 UTILITIES RTE IX DEL UPDATE FY 20181GONTRACr PER JAfrET DOC
I
February 8, 2017
Mr. Mark Van Vleck
Executive Director of Utilities
City of Corpus Christi
P.O. Box 9277
Corpus Christi, Texas 78469-9277
Re: Agreement for FY2018 Rate Model Update
Dear Mr. Van Vleck:
HDR is pleased to submit, for your consideration, this agreement for the update of the City's
water, wastewater, and gas utility financial planning and rate model. HDR will provide
technical and coordination support during this rate model update. This budget assumes that
the City will supply all of the data required to update the rate model, with HDR responsible
for placing the updated data into the model and running rate model scenarios as required.
As part of the updating process, any modifications that may be required to the model will be
evaluated and made under this agreement to the extent that they can be completed under
the fee and schedule. It is anticipated that these services would span a time frame of
February 2017 to July 2017. A detailed scope of services, schedule and fee proposal is
included as Attachment A to this agreement.
HDR recommends an overall fee of$49,740 for this effort, proposed on a time and materials
basis and not to be exceeded without advance written authorization from the City. Any work
beyond this scope will require an amendment and additional fee and schedule.
Billing will be made monthly based on the monthly level of effort incurred. It is understood
that this fee is a placeholder amount. If less effort is needed, the City will not be billed the
full amount. If a greater level of effort is needed, then HDR will negotiate a scope
amendment at that time if required.
If you have any questions, please call me at 512-214-6154.
hdrinc.com
4401 West Gate Boulevard,Suite 400.Austin,TX 78745 Exhibit A
T 512.912 5100 F 512 9125158 Page 1 of 7
Texas Registered Engineering Firm F-754
Sincerely,
// ç
• ecr, K
Grady Reed
Project Manager
Agreed:
at,A...,,, • 41/II"
KellKa-,,, E. Authorized Representative
Senior Vice President City of Corpus Christi, Texas
Date
4401 West Gate Boulevard,Suite 400,Austin,TX 78745 hdrinc.com Exhibit A
P 512.912.5100
Texas Registered Engineering Firm F-754 Page 2 of 7
•
•
Attachment"A"
Scope of Work, Fee&Schedule
4401 West Gate Boulevard,Suite 400,Austin,TX 78745 hdrinc.com Exhibit A
P 512.912.5100 Page 3 of 7
Texas Registered Engineering Firm F-754
•
Scope of Professional Services for
ADJUSTMENTS AND UPDATING OF THE
CITY OF CORPUS CHRISTI UTILITY RATE MODEL
HDR Engineering, Inc. (HDR) has been asked by staff of the City of Corpus Christi (City)to
provide various consulting services to assist the City with the update of its water, wastewater,
stormwater and gas utilities rate model for the pending FY18 fiscal year. Some requested
activities are typical efforts involved in an annual update of the model,while other efforts
involve recompiling data or making structural changes to the rate model to accommodate
organizational and financial accounting changes being implemented by the City.
SCOPE OF SERVICES
Task 1-Compile HTE Customer Count and Water Use Data as Input to the Rate Model
HDR will compile the most recent customer counts and service use information as well as the
most recent actual expenses, provided by the City,to update the model for FY17 and projected
FY18. This updated data will be placed into the rate model.
Task 2-Update Various Other Inputs to the Rate Model
HDR will gather/compile various other data that may be needed as input to the model, such as
an updated Capital Improvements Program, any pending or new debt issuance, updated
common cost allocation factors.
Task 3—Analyze Effect of 2-Year Average Rate and Model Simplification
HDR will evaluate the 2-Year Average Rate that has been implemented by the City. Based on
the evaluation, HDR will make recommendations regarding the next two fiscal year's rate (FY18
and FY19). HDR will work with staff to determine any financial impacts that should be
considered.
In addition,the current modeling effort has become cumbersome and requires maintaining two
rate models (a one-year rate model and a two-year rate model). HDR will explore options to
combine or simplify this current rate setting practice and make appropriate modifications to
the model(s) as appropriate.
Task 4—Calculate the Treated Water and Raw Water True-Up
HDR will calculate the true-up of the costs for water diversion and treatment and raw water.
HDR will confer with City staff as to the calculation and result. In doing the true-up, HDR will
need to consider the 2-year average rate and will work with City staff to determine how any
over or under-recoveries will be collected. HDR will also be prepared to discuss the results with
the City's customers and their consultants.
Exhibit A
Page 4 of 7
•
Task 5—Change"Las Brisas" References in the Rate Model to"Blended"
HDR will update the model to rename any references to Las Brisas to Blended. This will allow to
City to have a blended water rate in the future should one be needed.
Task 6—Update Users Manual
HDR will update the model's User Manual, as needed. The manual will describe: (a)the model's
features,structure and linkages; (b) a description of each worksheet and tables discussing
inputs to the table, key calculations, outputs of the table and their use by other portions of the
model, and (c) various issues relating to running scenarios, interpreting results, archiving model
versions and updating the model.
HDR will also provide model training to City staff on the revised rate model.
Task 7—Model Scenarios
HDR will be available to run various rate scenarios directed by staff as budget and schedule
allows. These could include considering various capital improvement schedules, cost
adjustments or consumption projections.
Task 8—Coordination
In scoping this effort, HDR has budgeted for four coordination meetings with the City:
(1) Two meetings with Finance Department Staff to discuss various aspects of the model,
including but not limited to data input and model simplification.
(2) a third interim coordination meeting with City Staff to review draft changes to the
model and model input to date.
(3) a fourth and final coordination meeting to go over draft model results with Staff and to
get direction on any additional scenarios that may be needed.
(4) Any additional meetings needed to discuss additional scenarios will be billed at the
appropriate hourly rate.
Exhibit A
Page 5 of 7
SCHEDULE
HDR will work to adhere to the schedule below and will strive to meet this schedule to the
extent that data and critical decisions are made on a timely basis. HDR understands that the
City would like to approve rates during June, if possible. This schedule assumes that budget,
CIP, customer and use data will be available no later than the end of March.
2017
Activities Feb Mar Apr May Jun Jul
Notice to Proceed — February 15, 2017 4
Task 1 — Compile HTE Customer Count and
Water Use Data
Task 2— Update Various Other Inputs
Task 3 —Analyze 2-Year Average Rates and
Model Simplification
Task 4 —Treated Water and Raw Water True-up
Task 5—Change "Las Brisas" to "Blended"
Task 6 — Update Users Manual & Model Training
Task 7 — Model Scenarios
Task 8 — Coordination • • S 4
Exhibit A
Page 6 of 7
PROPOSED FEE
HDR proposes a fee of$49,740 to complete this project, on a time and materials basis and not
to be exceeded without advanced written authorization of the City. A breakdown of these
costs is shown below. Additional effort or meetings can be provided for on an hourly basis at
the appropriate billing rates based on the table below.
PROPOSED FEE
CORPUS CHRISTI RATE MODEL UPDATE
A. LABOR EXPENSES Hourly Effort Total
Actitity Proi Mgr Staff Tech.Staff Clerical Total Hours Cost
Task 1—Compile Km Customer Count&Water Use Data as Input to the Rate Model 20,0 30,0 - - 50.0 8 8,244
Task 2-Update Various Other Inputs to the Rate Model 20.0 30.0 - - 50,0 $ 8,244
Task 3-Analyze Effect of 2-year Aterage Rate&Model Simplification 40.0 - 40.0 $ 6,889
Task 4-Calculate the Treated Water and Raw Water True up 32 0 -
10.0 42.0 $ 6,831
Task 5-Change Las Brisas References to"Blended" 8.0 - 8.0 5 1,378
Task 8-Update Users Manual&Model Training 24.0 - • 8.0 32.0 $ 4,773
Task 7-Model Scenarios 40,0 - - 40.0 $ 6,889
Task B-Coordination 32.0 - - 2.0 34.0 $ 5,671
Total Labor Hours 216.0 60.0 10.0 10.0 296,
Total Labor Expense $ 37,200 $ 9,600 $ 1,120 5 800 $ 48,720
B. NON-LABOR EXPENSES Unit Total
Item Quantdy Price Cost
Mileage 1,500 miles $ 0,56 per mile $ 840
Per Diem 4 days $ 20 per day $ 60
Communications,Reproduction&Supplies 1 ea. $ 100 I.s. $ 100
Total Nontabor Expenses $ 1,020
C. TOTAL TASK FEE $ 49,740
Exhibit A
Page 7 of 7
Basic Services:
Preliminary Phase
Design Phase
Bid Phase
Construction Phase
Subtotal Basic Services
Additional Services:
Permitting
Warranty Phase
Inspection
Platting Survey
O & M Manuals
SCADA
Subtotal Additional Services
Summary of Fees:
Basic Services Fees
Additional Services Fees
Total of Fees
COMPLETE PROJECT NAME
Project No. XXXX
Invoice No. 12345
Invoice Date 01/01/2017
Sample form for:
Payment Request
AE Contract
Revised 02/01/17
Total Current Previous Total Remaining Percent
Contract Amd No. 1 Amd No. 2 Contract
$1,000.00
$0.00
$0.00
$1,000.00
$2,000.00
$1,000.00
$0.00
$3,000.00
$500.00
$0.00
$250.00
$750.00
$2,500.00
$0.00
$1,000.00
$3,500.00
$6,000.00
$1,000.00
$1,250.00
$8,250.00
$0.00
$2,000.00
$0.00
$0.00
$2,000.00
$0.00
$1,120.00
$0.00
$1,120.00
$0.00
$0.00
$1,627.00
$1,627.00
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
$2,000.00
$1,120.00
$1,627.00
$4,747.00
$6,000.00
$1,000.00
$1,250.00
$8,250.00
$2,000.00
$1,120.00
$1,627.00
$4,747.00
$8,000.00
$2,120.00
$2,877.00
$12,997.00
Invoice Invoice Invoice
$0.00
$1,000.00
$1,000.00
$1,000.00
$500.00
$1,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$1,000.00
$1,500.00
$2,500.00
0.0%
$500.00
$0.00
$500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
$500.00
$0.00
$500.00
$1,000.00
$1,500.00
$2,500.00
$500.00
$0.00
$500.00
$1,500.00
$1,500.00
$3,000.00
Notes:
If needed, update this sample form based on the contract requirements.
If applicable, refer to the contract for information on what to include with time and materials (T&M).
Balance Complete
$0.00
100.0%
$1,500.00
50.0%
$750.00
0.0%
$3,500.00
0.0%
$5,750.00
30.3%
$1,500.00
25.0%
$1,120.00
0.0%
$1,627.00
0.0%
TBD
TBD
TBD
TBD
TBD
TBD
$4,247.00
10.5%
$5,750.00
30.3%
$4,247.00
10.5%
$9,997.00
23.1%
EXHIBIT B
Page 1 of 1
•
EXHIBIT C
INSURANCE REQUIREMENTS
1.1 Consultant must not commence work under this agreement until all required
insurance has been obtained and such insurance has been approved by the City.
Consultant must not allow any subcontractor to commence work until all similar insurance
required of any subcontractor has been obtained.
1.2 Consultant must furnish to the Director of Engineering Services with the signed
agreement a copy of Certificates of Insurance (COI)with applicable policy endorsements
showing the following minimum coverage by an insurance company(s) acceptable to the
City's Risk Manager. A waiver of subrogation is required on all applicable policies.
Endorsements must be provided with COI. Project name and or number must be
listed in Description Box of COI.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-written day notice of cancellation, Bodily Injury and Property Damage
required on all certificates or by Per occurrence - aggregate
applicable policy endorsements
PROFESSIONAL LIABILITY $1,000,000 Per Claim
(Errors and Omissions)
If claims made policy, retro date must be
prior to inception of agreement, have
extended reporting period provisions and
identify any limitations regarding who is
insured.
1.3 In the event of accidents of any kind related to this agreement, Consultant must
furnish the City with copies of all reports of any accidents within 10 days of the accident.
1.4 Consultant shall obtain and maintain in full force and effect for the duration of this
Contract, and any extension hereof, at Consultant's sole expense, insurance coverage
written on an occurrence basis, by companies authorized and admitted to do business in
the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is
required to provide City with renewal Certificates.
1.5 Consultant shall be required to submit a copy of the replacement certificate of
insurance to City at the address provided below within 10 days of the requested change.
Consultant shall pay any costs incurred resulting from said changes.All notices under this
Article shall be given to City at the following address:
•
City of Corpus Christi
Attn: Engineering Services
P.O. Box 9277
Corpus Christi, TX 78469-9277
1.6 Consultant agrees that with respect to the above required insurance, all
insurance policies are to contain or be endorsed to contain the following required
provisions:
1.6.1 Provide thirty (30) calendar days advance written notice directly to City of
cancellation of coverage and not less than ten (10) calendar days advance
written notice for nonpayment of premium.
1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of
coverage, Consultant shall provide a replacement Certificate of Insurance and applicable
endorsements to City. City shall have the option to suspend Consultant's performance
should there be a lapse in coverage at any time during this contract. Failure to provide and
to maintain the required insurance shall constitute a material breach of this contract.
1.8 In addition to any other remedies the City may have upon Consultant's failure to
provide and maintain any insurance or policy endorsements to the extent and within the
time herein required, the City shall have the right to order Consultant to remove the exhibit
hereunder, and/or withhold any payment(s) if any, which become due to Consultant
hereunder until Consultant demonstrates compliance with the requirements hereof.
1.9 Nothing herein contained shall be construed as limiting in any way the extent to
which Consultant may be held responsible for payments of damages to persons or property
resulting from Consultant's or its subcontractor's performance of the work covered under
this agreement.
1.10 It is agreed that Consultant's insurance shall be deemed primary and non-
contributory with respect to any insurance or self-insurance carried by the City of Corpus
Christi for liability arising out of operations under this agreement.
1.11 It is understood and agreed that the insurance required is in addition to and
separate from any other obligation contained in this agreement.