HomeMy WebLinkAboutGALARDI ROTHSTEIN GROUP AUGUSTA UTILITIES WATER AND WASTEWATER RATE STUDY UTILITIES DEPARTMENT
_� � ;�=�-
G E' � R G 1`A
STATE OF GEORGIA
RICHMOND COUNTY
CONSULTANT SERVICES AGREEMENT
BETWEEN
AUGUSTA, GEORGIA
(CITY)
AND
GALARDI ROTHSTEIN GROUP
(CONSULTANT)
CONSULTANT: GALARDI ROTHSTEIN GROUP
PROJECT: Augusta Utilities Water and Wastewater Rate Study
DATE EXECUTED:
DATE COMPLETED:
1 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� �, :�=�-
G � O R G.I A
STATE OF GEORGIA
RICHMOND COUNTY
CONSULTANT SERVICES AGREEMENT
BETWEEN
AUGUSTA, GEORGIA -
(CITY)
AND
GALARDI ROTHSTEIN GROUP
(CONSULTANT)
This Agreement is made and entered into this day of , 2011
by and between AUGUSTA, Georgia, a political subdivision of the State of Georgia, hereinafter
called the "CITY" and GALARDI ROTHSTEIN GROUP, a Corporation authorized to do
business in Georgia, hereinafter called the "CONSULTANT."
WHEREAS, the CITY desires to engage a qualified and experience consulting firm to furnish
professional services for:
Augusta Utilities Water and Wastewater Rate Study; and,
WHEREAS, the CONSULTANT has represented to the CITY that it is experienced and qualified
to provide the services contained herein and the CITY has relied upon such representation.
NOW, THEREFORE, in consideration of the mutual promises and covenant herein contained, it
is agreed by and between the CITY and the CONSULTANT that:
2 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—/= � ; j�=�z,-
G E� O R G I A
GENERAL PROVISIONS
CONSULTANT has agreed in its Agreement with CITY to provide the professional services
required to meet the scope as described in Attachment A.
CONSULTANT COORDINATION
The CONSULTANT shall cooperate fully with all municipalities, local government officials,
utility companies, and other consultants as directed by the CITY. CITY, CONSULTANT and all -
relevant parties agree to work together on the basis of trust, good faith and fair dealing, and
shall take actions reasonably necessary to enable each other to perform this Agreement in a
timely, efficient and economical manner. All parties agree to cooperate in a manner consistent
with good design practice and will exercise the degree of skill and diligence normally employed
by professional engineers or consultants practicing under similar conditions. CONSULTANT
will re-perforrn any services not meeting this standard without additional compensation.
AMENDMENTS TO AGREEMENT
Every amendment to the Scope of Services shall become and is hereby made a part of this _
Agreement. Amendments must be fully executed by both the CONSULTANT and CIT'Y to be
valid.
REDUCTION IN REQUIRED SERVICES
If reductions in the required services are ordered by CITY, the credits shall be the amounts for
such services as described in subsequently executed Amendments to this Agreement, and no
claim for damages for anticipated profits shall accrue to the CONSULTANT.
DATE CHANGES
If in this Agreement specific periods of time for rendering services are set forth or specific dates
by which services are to be completed are provided and if such periods of time or dates are
changed through no fault of CONSULTANT, the rates and amounts of compensation provided
for herein shall be subject to equitable adjustment.
AGREEMENT MODIFICATIONS
This Agreement shall not be modified except by a duly executed Amendment hereto in writing
under the hands and seals of both parties hereto.
TIME OF COMPLETION
The time of completion shall be as described in the schedule attached hereto as Attachment D-
Schedule.
3 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� � :��
G � O R G I A
This Agreement shall terminate immediately and absolutely at such time as appropriated and
otherwise obligated funds are no longer available to satisfy the obligations of the
CONSULTANT on behalf of the CITY under this Agreement. However, CONSULTANT will be
compensated for all work prior to termination of contract even if the CITY has obligated the
funds to other projects.
PROJECT PROGRESS
CONSULTANT'S services and compensation under this Agreement have been agreed to in
anticipation of the orderly and continuous progress of the Project through completion.
LITIGATION
Nothing in this Agreement shall be construed as obligating the CONSULTANT to appear,
support, prepare, document, bring, defend or assist in litigation either undertaken or defended
in behalf of the CITY except in consideration of compensation. All such services required or
requested of CONSULTANT by the CITY except suits or claims between the parties to this
Agreement will be reimbursed as additional services.
BINDINGS
It is further agreed that the CITY and CONSULTANT each binds itself and themselves, it's or
their successors, executors, administrators and assigns to the other party to this Agreement and
to its or their successors, executors and assigns in respect to all covenants of this Agreement.
Except as above, neither CITY nor the CONSULTANT shall assign, sublet or transfer its or their
interest in this Agreement without prior written consent of the other party hereto.
EXTENT OF THE AGREEMENT
This Agreement represents the entire agreement between CITY and CONSULTANT and
supersedes all prior negotiations, representations and agreements, either written or oral. -
4 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-� � ;�! �-
G '� R G i A
DEFINITIONS
Wherever used in this Agreement, whether in the singular or in the plural, the following terms
shall have the following meanings:
A�reement Execution - means the date on which CONSULTANT executes and enters into an
Agreement with CITY to perform the Work.
A�reement Price - means the total monies, adjusted in accordance with any provision herein,
payable to the CONSULTANT under this Agreement.
CITY -means a legal entity AUGUSTA, Georgia, a political subdivision of the State of Georgia.
CONSULTANT - means the party or parties contracting directly with the CIT'Y to perform
Work pursuant to this Agreement.
Contract - means the Agreement Documents specifically identified and incorporated herein by
reference.
Contract Time - means the period of time stated in this Agreement for the completion of the
Work.
Subcontractor - means any person, firm, partnership, joint venture, company, corporation, or
entity having a contractual agreement with CONSULTANT or with any of its subcontractors at
any tier to provide a part of the Work called for by this Agreement.
Supplemental Agreement - means a written order to CONSULTANT signed by CITY and
accepted by CONSULTANT, effecting an addition, deletion or revision in the Work, or an
adjustment in the Agreement Price or the Contract Time, issued after execution of this
Agreement.
Task Order - means a written order specifying a Scope of Services, time of completion and
compensation limit for services being provided by CONSULTANT. Task Orders shall be
incorporated by reference as part of the Supplemental Conditions of this Agreement.
Work - means any and all obligations, duties and responsibilities, including furnishing
equipment, engineering, design, workmanship, labor and any other services or things necessary
to the successful completion of the Project, assigned to or undertaken by CONSULTANT under
this Agreement.
5 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-/= � ;�=�-
c 'o � c t n
CONTRACT DOCUMENTS
List of Documents
The Agreement, the General Conditions, the Attachments, and any Supplemental Agreements,
including Task Orders shall constitute the Agreement Documents.
Conflict and Precedence
The Agreement Documents are complementary, and what is called for by one is as binding as if
called for by all. In the event there are any conflicting provisions or requirements in the
component parts of this Agreement, the several Agreement Documents shall take precedence in
the following order:
1. Agreement - Including Attachments
2. General Conditions
3. Supplemental Conditions - Including Task Orders
6 OF 34 REVISION DATE: June 2011 -
- - UTILITIES DEPARTMENT
_� -' ;i�=�--
G � 4 R G 1 A
GENERAL CONDITIONS
1. COMMENCEMENT OF WORK
The performance of services herein described in this Agreement as Attachment A shall be
commenced upon receipt by the CONSULTANT of a written Task Order authorization. The
effective date of services shall be defined in each Task Order authorization. -
2. PROFESSIONAL STANDARDS
The standard of care for all services performed or furnished by CONSULTANT under this
Agreement will be the level of care and that is ordinarily used by members of CONSULTANT'S
profession practicing under similar conditions.
3. CHANGES AND EXTRA WORK
The CITY may, at any time, request changes in the work to be performed hereunder. All such
changes, including any increase or decrease in the amount of the CONSULTANT's
compensation, which are mutually agreed upon by and between the CITY and the
CONSULTANT, shall be incorporated in written Supplemental Agreements to the Agreement.
Changes that involve an increase in the compensation shall be considered major, and require
the approval of the CITY.
4. PERSONNEL
The CONSULTANT represents that it has secured or will secure, at its own expense, all
personnel necessary to complete this Agreement; none of whom shall be employees of, or have
any contractual relationship with, the CITY. All of the services required hereunder will be
performed by the CONSULTANT under its supervision, and all personnel engaged in the work
shall be qualified and shall be authorized or permitted under law to perform such services.
All key professional personnel, including subcontractors, engaged in performing services for
the CONSULTANT under this agreement are indicated in a personnel listing attached hereto as
Attachment C- Listing of Key Personnel and incorporate herein by reference. No changes or
substitution shall be permitted in the CONSULTANT's Key Personnel without the prior written
approval of the CITY or his designee.
The CONSULTANT shall employ only persons duly registered in the appropriate category in
responsible charge of supervision and design of the work as required. The CONSULTANT
shall endorse all reports, contract plans, and survey data. Such endorsements shall be made by
a person duly registered in the appropriate category by the Georgia State Board of Registration
7 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� � :�! --Q,
G ' Cf A G I A
for Professional Engineers and Land Surveyors, being in the full employ of the CONSULTANT _
and responsible for the work prescribed by this Agreement.
5. ACCURACY OF WORK
The CONSULTANT shall be responsible for the accuracy of the work and shall promptly
correct negligent errors and omissions in such work without additional compensation. The
CONSULTANT shall give immediate attention to these changes so there will be a minimum of
delay to others.
Acceptance of the work by the CITY will not relieve the CONSULTANT of the responsibility for
subsequent correction of any such errors and the clarification of any ambiguities.
6. CONFIDENTIALITY
The CONSULTANT agrees that its conclusions and any reports are for the confidential use and
information of the CIT'Y and that it will not disclose its conclusions in whole or in part to any
persons whatsoever, other than to submit its written documentation to the CITY, and will only
discuss the same with it or its authorized representatives. Upon completion of this Agreement
term, all documents, drawings, reports, maps, data and studies prepared by the CONSULTANT
pursuant thereto shall become the property of the CITY and be delivered thereto.
Articles, papers, bulletins, reports, or other materials reporting the plans, progress, analyses, or
results and findings of the work conducted under this Agreement shall not be presented
publicly or published without prior approval in writing of the CITY.
It is further agreed that if any i.nformation concerning the PROJECT, should be released by the
CONSULTANT without prior approval from the CITY, the release of same shall constitute
grounds for termination of this Agreement without indemnity to the CONSULTANT, but
should any such information be released by the CITY or by the CONSULTANT with such prior
approval, the same shall be regarded as public information and no longer subject to the
restrictions of this Agreement.
7. OPEN RECORDS
CONSULTANT acknowledge that all records relating to this Agreement and the services to be
provided under the contract may be a public record subject to Georgia's Open Records Act
(O.C.G.A. � 50-18-70, et seq.). CONSULTANT shall cooperate fully in responding to such
request and making all records, not exempt, available for inspection and copying as provided
by law.
8 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� � i��--
G Ef O � G 1'A
8. TURISDICTION
The law of the State of Georgia shall govern the CONTRACT between CITY and -
CONSULTANT with regard to its interpretation and performance, and any other claims related
to this agreement.
All claims, disputes and other matters in question between CITY and CONSULTANT arising
out of or relating to the Agreement, or the breach thereof, shall be decided in the Superior Court
of Richmond County, Georgia. The CONSULTANT, by executing this Agreement, specifically
consents to jurisdiction and venue in Richmond County and waives any right to contest the
jurisdiction and venue in the Superior Court of Richmond County, Georgia.
9. TERMINATION OF AGREEMENT FOR CAUSE _
If through any cause, the CONSULTANT shall fail to fulfill in a timely and proper manner its
obligations under this Agreement, or if the CONSULTANT shall violate any of the covenants,
agreements or stipulations of this Agreement, CONSULTANT will be given the opportunity to
commence correction of obligation within 5 days of written notice and diligently complete the
correction thereafter. Failure to maintain the scheduled level of effort as proposed and
prescribed, or deviation from the aforesaid schedule without prior approval of the CITY, shall
constitute cause for termination. The CITY shall thereupon have the right to terminate this
Agreement by giving written notice to the CONSULTANT of such termination, and specifying
the effective date thereof, at least five (5) days before the effective date of such termination. In
such event, all finished or unfinished documents, maps, data, studies, work papers and reports
prepared by the CONSULTANT under this Agreement shall become the property of the CITY,
and the CONSULTANT shall be entitled to receive just and equitable compensation for any
satisfactory work completed on such documents, as mutually agreed by the CITY and
CONSULTANT.
10. TERMINATION FOR CONVENIENCE OF THE CITY
The CITY may terminate this contract in part or in whole upon written notice to the
CONSULTANT. The CONSULTANT shall be paid for any validated services under this
Contract up to the time of termination. -
11. COORDINATION AND COOPERATION WITH OTHER UTILITIES AND
CONSULTANTS
If the CITY undertakes or awards other contracts for additional related work, the
CONSULTANT shall fully cooperate with such other CONSULTANTs and the CITY employees
or appointed committee(s), and carefully fit its own work to such additional work as may be
directed by the CITY. The CONSULTANT shall not commit or permit any act which will
interfere with the performance of work by any other CONSULTANT or by CITY employees.
9 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� � ;�'�-
G � � R � t + A
12. COVENANT AGAINST CONTINGENT FEES
The CONSULTANT warrants that no person or selling agency has been employed or retained
to solicit or secure this Agreement upon an agreement or understanding for a commission,
percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide
established commercial or selling agencies maintained by CONSULTANT for the purpose of
securing business and that the CONSULTANT has not received any non-CITY fee related to this
Agreement without the prior written consent of the CITY. For breach or violation of this
warranty, the CITY shall have the right to annul this Agreement without liability or at its
discretion to deduct from the Agreement Price of consideration the full amount of such
commission, percentage, brokerage or contingent fee.
13. RESPONSIBILITY FOR CLAIMS AND LIABILITY
The CONSULTANT shall be responsible for any and all damages to properties or persons
caused by its employees, subcontractors, or agents, and shall hold harmless the CITY, its
officers, agents and employees from all suits, claims, actions or damages of any nature
whatsoever to the extent found to be resulting from the CONSULTANT, its subcontracts, or
agent in the negligent performance or non-performance of work under this Agreement. These
indemnities shall not be limited by reason of the listing of any insurance coverage.
14. INSURANCE
The CONSULTANT shall, at all times that this Agreement is in effect, cause to be maintained in
force and effect an insurance policy(s) that will ensure and indexnnify both the CITY against
liability or financial loss resulting from injuries occurring to persons or property or occurring as
a result of any negligent error, act, or omission of the CONSULTANT during the term of this
Agreement.
The CONSULTANT shall provide, at all times that this agreement is in effect, Worker's
Compensation insurance in accordance with the laws of the State of Georgia.
The CONSULTANT shall provide, at all times that this Agreement is in effect, Insurance with
limits of not less than:
A. Workmeri s Compensation Insurance - in accordance with the laws of the State of Georgia.
B. Public Liability Insurance - in an amount of not less than One Million ($1,000,000) Dollars
for injuries, including those resulting in death to any one person, and in an amount of not
less than One Million ($1,000,000) Dollars on account of any one occurrence.
C. Property Dama�e Insurance - in an amount of not less than One Million ($1,000,000) Dollars
from damages on account of an occurrence, with an aggregate lixnit of One Million
($1,000,000) Dollars.
10 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-� � ;��
G ' � R� t A
D. Valuable Papers Insurance - in an amount sufficient to assure the restoration of any plans,
drawings, field notes, or other similar data relating to the work covered by the Project.
E. Professional Liability Insurance - in an of not less than One Million ($1,000,000) Dollars or
an amount that correlates to the aggregate fee on the project should it exceed $1,000,000.
CITY will be named as an additional insured with respect to CONSULTANT's liabilities
hereunder in insurance coverage's identified in items (b) and (c).
The policies shall be written by a responsible company(s), to be approved by the CITY, and
shall be noncancellable except on thirty-(30) days' written notice to the CITY. Such policies shall
name the CIT'Y as additional insured, except for worker's compensation and professional
liability policies, and a copy of such policy or a certificate of insurance shall be filed with the
Director at the time of the execution of this Agreement.
15. PROHIBITED INTERESTS
15.1 Conflict of Interest: The CONSULTANT agrees that it presently has no interest and shall
acquire no interest, direct or indirect, that would conflict in any manner or degree with
the performance of its services hereunder. The CONSULTANT further agrees that, in
the performance of the Agreement, no person having such interest shall be employed.
15.2 Interest of Public Officials: No member, officer, or employee of the CITY during his
tenure or for one year thereafter, shall have any interest, direct or indirect, in this
Agreement or the proceeds thereof.
15.3 Employment of CIT'Y's Personnel: The CONSULTANT shall not employ any person or
persons in the employ of the CITY for any work required by the terms of the Agreement,
without the written permission of the CITY except as may otherwise be provided for
herein.
16. SUBCONTRACTING
T'he CONSULTANT shall not subcontract any part of the work covered by this Agreement or
permit subcontracted work to be further subcontracted without the CITY's prior written
approval of the subcontractor.
All subcontracts in the amount of $5,000 or more shall include, where possible, the provisions
set forth in this Agreement.
11 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� �, ;�=�-
G ' D R G I A
17. ASSIGNABILITY
The CONSULTANT shall not assign or transfer whether by an assignment or novation, any of
its rights, obligations, benefits, liabilities or other interest under this Agreement without the
written consent of the CITY.
18. EQUAL EMPLOYMENT OPPORTUNITY
During the performance of this Agreement, the CONSULTANT agrees as follows: (1) the
CONSULTANT will not discriminate against any employee or applicant for employment
because of race, creed, color, sex or national origin; (2) the CONSULTANT will, in all
solicitations or advertisernents for employees placed by qualified applicants, receive
consideration for employment without regard to race, creed, color, sex or national origin; (3) the
CONSULTANT will cause the foregoing provisions to be inserted in all subcontracts for any
work covered by the Agreement so that such provision will be binding upon each
subcontractor, provided that the foregoing provision shall not apply to contracts or subcontracts
for standard commercial supplies of raw materials.
19. DRUG FREE WORK PLACE
CONSULTANT shall be responsible for insuring that its employees shall not be involved in any
manner with the unlawful manufacture, distribution, dispensation, possession, sale or use of a
controlled substance in the workplace. For purposes of the policy, "workplace" is defined as
CITY owned or leased property, vehicles, and project or client site. Any violation of the
prohibitions may result in discipline and/or immediate discharge.
CONSULTANT shall notify the appropriate federal agencies of an employee who has a criminal
drug statute conviction for workplace violation.
CONSULTANT may require drug or alcohol testing of employees when contractually or legally
obligated, or when good business practices would dictate.
20. ANTI-KICKBACK CLAUSE
Salaries of architects, drafters, engineer's, and technicians performing work under this
Agreement shall be paid unconditionally and not less often than once a month without
deduction or rebate on any account except only such payroll deductions as are mandatory by
law. The CONSULTANT hereby promises to comply with all applicable "Anti-kickback" laws,
and shall insert appropriate provisions in all subcontracts covering work under this Agreement. _
21. AUDITS AND INSPECTORS
At any time during normal business hours and as often as the CITY may deem necessary, the
CONSULTANT shall make available to the CITY and/or audit representatives of the CITY for
examination all of its records with respect to all matters covered by this Agreement. It shall also
12 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-,�� � ;
G 't} � C I A
permit the CITY and/or representatives of the audit, examine and make copies, excerpts or
transcripts from such records of personnel, conditions of employment and other data relating to
all matters covered by this Agreement.
The CONSULTANT shall maintain all books, documents, papers, accounting records and other
evidence pertaining to costs incurred on the Project and used in support of its proposal and
shall make such material available at all reasonable times during the period of the Agreement,
and for three years from the date of final payment under the Agreement, for inspection by the
CITY or any reviewing agencies, and copies thereof shall be furnished upon request at cost plus
10%. The CONSULTANT agrees that the provisions of this Article shall be included in any
Agreements it may make with any subcontractor, assignee, or transferee.
22. OWNERSHIP, PUBLICATION, REPRODUCTION AND USE
All documents and materials prepared as an instrument of service pursuant to this Agreement
are the property of the CITY. The CITY shall have the unrestricted authority to publish,
disclose, distribute, and otherwise use, in whole or in part, any reports, data, maps, or other
materials prepared under this Agreement without according credit of authorship. The CITY
shall hold harmless the CONSULTANT against all claims arising out of such use of documents
and materials without the CONSULTANT's knowledge and written consent.
23. VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employee of the CITY, either
before, during, or after the execution of this Agreement, shall affect or modify any of the terxns
or obligations herein contained, nor shall such verbal agreement or conversation entitle the
CONSULTANT to any additional payment whatsoever under the terms for this Agreement. All
changes to this Agreement shall be in writing and appended hereto as prescribed in Article 3
above.
24. INDEPENDENT CONTRACTOR
The CONSULTANT shall perform the services under this Agreement as an independent
contractor and nothing contained herein shall be construed to be inconsistent with this
relationship or status. Nothing in this Agreement shall be interpreted or construed to constitute
the CONSULTANT or any of its agents or employees to be the agent, employee, or
representative of the CITY.
13 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� J :��
c 'o x � t n
25. NOTICES
All notices shall be in writing and delivered in person or transmitted by certified mail, postage
prepaid. Notices shall be addressed as follows:
CIT'Y: CONSULTANT:
ADMINISTRATOR PROJECT MANAGER
AUGUSTA, GEORGIA GALARDI ROTHSTEIN GROUP
530 Greene Street Attn: Eric Rothstein
Augusta, GA 30901 740 S. Federal Street, Suite 1101
Chicago, Illinois 60605
Copy to:
DIRECTOR
AUGUSTA UTILITIES DEPARTMENT
360 Bay Street
Augusta, GA 30901
IN WITNESS WHEREOF, said parties have hereunto set their seals the day and year written
below:
AUGUSTA, GEORGIA (CIT'� CONSULTANT
� -- -
�
BY: �'`��` � BY:
�
^ f'�j"� � PRINTED NAME: ��U.�1> ;- C� �P� i� f�f=i i.���.p�NTED NAME: �"7f'/C �D7�f$
1 1 �� � TITLE: MAYOR TITLE: PROJECT MANAGER
... .
ATTEST �LERK:
�.��
`�"� �' :�i�p ��1
,.
n e�
�� �r� �o�.�I
DATE: ��� (f�` ,+,' o''� DATE: �//�-svv�9�/ l�, 2��/ Z
.s 0 9 �
� �� ' �'�... '� �
i: t:�.._ ) , �
. ... ., -� � �� �
" ;'�
- �f�`, ., :.� .
o� 7.
�` W � t
��;;,� �
�`� .., .+.." -
14 OF 34 ' REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� � ;i��
G `U R G T A
CONSULTANT'S RESPONSIBILITIES
CONSULTANT shall review its understanding of the Project requirements with the CITY and
shall advise CITY of additional data or services which are not a part of CONSULTANT's
services, if any, necessary for work to begin.
PROTECT UNDERSTANDING
Upon request from the CONSULTANT, CITY may provide all criteria and full information as to
CITY's and CONSULTANT'S requirements for this part of the project, including design
objectives and constraints, space, capacity and performance requirements, flexibility and
expendability, and any budgetary limitations. CONSULTANT may request from the CITY to
furnish data, reports, surveys, and other materials that may be relied upon in performing
CONSULTANT'S services.
REVIEW OF WORK
Authorized representatives of the CITY may at all reasonable times review and inspect the
project activities and data collected under the Agreement and amendments thereto. All reports,
drawings, studies, specifications, estimates, maps and computation prepared by or for the CITY
in association with this Agreement shall be subject to review.
The CITY may at any time request progress reports, prints or copies of any work performed
under this Agreement. Refusal by the CONSULTANT to submit progress reports and/or plans
shall be cause to withhold payment to the CONSULTANT until the CONSULTANT complies
with the CITY's request in the regard.
CONSULTANT'S INSURANCE
CONSULTANT will maintain throughout this AGREEMENT the following insurance limits as
specified in General Condition 14 - Insurance.
CITY'S RESPONSIBILITIES
CITY-FURNISHED DATA
CITY will provide to CONSULTANT all data in CITY's possession relating to CONSULTANT's
services on the PROJECT. CONSULTANT will reasonably rely upon the accuracy, timeliness,
and completeness of the information provided by CITY.
RIGHT TO ENTER
The CONSULTANT will notify alt property owners or occupants of the intent to enter
properties for the purpose of accomplishing work in accordance with the practices of the CITY.
The CONSULTANT shall discuss with and receive approval from the CITY prior to sending
notices of intent to enter private property. Upon request by the CONSULTANT, the CITY will
15 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� � ;��
G `� A G I A
provide the necessary documents identifying the CONSULTANT as being in the employ CITY
for the purpose described in the Agreement.
ADVERTISEMENTS, PERMITS, AND ACCESS
Unless otherwise agreed to in the Scope of Services, CITY will obtain, arrange, and pay for all _
advertisements for bids; permits and licenses required by local, state, or federal authorities; and
land, easements, rights-of-way, and access necessary for CONSULTANT's services or PROJECT
construction.
TIMELY REVIEW
CITY will examine CONSULTANT's studies, reports, sketches, drawings, specifications,
proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant,
auditor, bond and financial advisors, and other consultants as CITY deems appropriate; and
render in writing decisions required by CITY in a timely manner.
PROMPT NOTICE -
CITY will give prompt written notice to CONSULTANT whenever CITY observes or becomes
aware of any development that affects the scope or timing of CONSULTANT's services, or of
any defect in the work of CONSULTANT.
CITY'S INSURANCE
CITY will maintain property insurance on all pre-existing physical facilities associated in any
way with the PROJECT.
LITIGATION ASSISTANCE
The Scope of Services does not include costs of CONSULTANT for required or requested _
assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or
defended by CITY. All such services required or requested of CONSULTANT by CITY, except
for suits or claims between the parties to this AGREEMENT, will be reimbursed as additional
services.
16 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� - ;i��
G � O R G I A
ATTACHMENT A- SCOPE OF SERVICES
Proj ect Understanding
Over the course of the last decade, the City of Augusta has made major investments in its water
and wastewater systems and now serves the U.S. Army's Fort Gordon garrison. The Augusta -
Utilities Department (AUD) is updating its Master Plan and future Capital Improvement
Program to reflect changes in its systems' infrastructure and prospective system development
needs. A cost-of-service rate analysis, including an evaluation of impact fees and affordability
program options, will help ensure the equitable distribution of system cost responsibilities
across ratepayers. The study will further address emerging policy considerations including the
need to promote water efficiency in the context of state-wide water supply challenges and the
need to ensure the affordability of services for basic human health and sanitary needs.
Project Team & Ro1es
Galardi Rothstein Group (GRG) will serve as the prime for this engagement and will provide
financial and rate consulting services. Raftelis Financial Consultants, Inc. (RFC) will serve as a
sub-consultant providing financial and rate consulting services, and W.K. Dickson will serve as
a sub-consultant providing cost allocation services.
AUD Staff
Role: AUD staff will be responsible for providing data for the study, reviewing draft
deliverables, and participating in meetings and workshops. The Project Team (RFC/GRG) has
found that the most successful projects include client involvement throughout the engagement.
At the same time, the Project Team realizes AUD staff has other responsibilities, so it must
utilize staff time efficiently. The Project Team anticipates AUD designating a staff inember to be
the Client Project Manager who will serve as the prixnary contact and who will have authority
to provide guidance to the Project Team.
Eric Rothstein, CPA: Project Manager (Principal, GRG)
Role: For this engagement, Eric Rothstein will be responsible for contractual representations
with the City as well as overall project accountability, and will serve as the primary contact with
the City for this engagement. He will manage the project and ensure it is within budget, on
schedule, and that work and deliverables are satisfactory to the City. He will also conduct and
oversee analytical services.
17 OF 34 REVISION DATE: June 2011
- UTILITIES DEPARTMENT
_� � ;�! �-
G 'o � c t n
Peiffer Brandt: Technical Advisor (Chief Operating Officer, RFC)
Role: For this engagement, Peiffer Brandt will be available to advise the Project Team on rate
structure and cost of service matters.
Debbie Galardi: Staff Support/'Technical Advisor (Principal, GRG)
Role: For this engagement, Debbie Galardi will be available to advise the Project Team on rate
structure and cost of service matters. She will also assist with customer classification, review of
impact fee analyses, and evaluation of rate design options.
Melissa Levin: Lead Consultant (Manager, RFC)
Role: For this engagement, Melissa Levin will conduct analyses and prepare project
deliverables. She will also serve as Assistance Project Manager, providing daily support and
back-up for project management duties.
David Fox: Staff Consultant (Consultant, RFC)
Role: For this engagement, David Fox will compile and analyze AUD data sets, perform
analyses and modeling services, and help prepare project deliverables.
Trey Wingate, PE: Cost Allocation (Principal-In-Charge, W.K. Dickson)
Role: For this engagement, Trey Wingate will assist in the technical review of system operating
data and consideration of the design and function of system assets for the cost allocation phase
of the analysis. -
Gordon Smith, PE: Cost Allocation (Project Manager, W.K. Dickson)
Role: For this engagement, Gordon Smith will assist in the review of system operating data and
consideration of the design and function of system assets for the cost allocation phase of the
analysis. In addition, he will offer additional perspectives on stakeholder engagement issues
and protocols.
18 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� �',�! �-
G ' Cj R G I"A
Proj ect Approach
The Project Team has structured its approach with three main components: 1) cost-of-service
rate development; 2) miscellaneous fee and charge review/update; and 3) affordability issues
and public involvement/education. The three components are budgeted separately but are
closely interrelated. The proposed process for cost-of-service rate development follows the
standard approaches outlined by the American Water Works Association (AWWA) and the
Water Environment Federation (WEF). This process begins with development of utility revenue
requirements, and is followed by a four-step cost allocation process;l) functionalization, 2) joint
and specific allocation, 3) classification, and 4) customer class allocation. The final step in the
rate development process is the design of a structure of rates and charges for each customer
class. Cost of service serves as the framework from which to evaluate allocated revenue
requirements and alternative rate structures. Deviations from cost of service rates may be
warranted to further a community's public policy objectives.
Workshops
Because the GRG/RFC project approach is grounded by the intent to closely collaborate with
AUD and its key stakeholders, the project approach features a series of workshops - both
technical workshops and Commission/key stakeholder workshops (budgeted collectively).
These workshops are outlined briefly throughout the subsequent discussion of the project
approach. In general, technical workshops involve detailed discussion and review of data,
calculations, and administrative considerations, as well discussions of how to synthesize _
information for key decision-makers. Commission/key stakeholder workshops are generally
oriented to a review of fundamental policy issues and presentation of viable, administratively
feasible alternatives for Commission consideration.
Task #1- Cost-of-Service Rate Development
The cost-of-service and rate development is the heart of this engagement.
Proj ect Initiation, Management, and QA/QC
The Project Initiation and Management Task will begin the study so that it progresses in an
efficient and deliberate manner.
Kick Meeting with AUD Staff The kickoff ineeting provides a solid platform from
which the project is launched. The meeting serves as a forum in which management and staff
can provide input on the project approach, work plan, schedule, and priorities. A successful
meeting ensures that project participants mutually agree as to the project goals and
expectations.
19 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� �, ;�=�-
c 'o � c � n
Deliverable 1: Kick Meeting Agenda and Data Request List
Data and Document Review. GRG/RFC has developed a detailed list of information needs _
and will review available data prior to the kick-off ineeting so that comments and questions
related to the data may be discussed. Subsequently, data will be reviewed and discussed with
staff as it becomes available. The ability to meet project schedules will be contingent on the
receipt of data in a timely manner, and in a format that does not require extensive manipulation
by the Project Team. GRG/RFC is committed to undertaking the necessary dialogue in order to
gain an accurate understanding of the AUD's financial and system information.
Quality Assurance/Quality Control. GRG/RFC's Project Team leadership will participate
in and review analyses and deliverables throughout the engagement. For budgeting purposes,
this activity is included within this project component.
Technical Workshop 1- Pricing Objectives: In conjunction with the Project Kick-off
Meeting, GRG/RFC will conduct a Pricing Objectives Workshop. The objective of
this workshop is to work with staff and/or the Commission to determine the pricing objectives
of both the water and wastewater rate structures. Pricing objectives typically include revenue
sufficiency, revenue stability, affordability, conservation, minimizing customer impacts,
economic development, ability to implement, and others.
Deliverable 2: Workshop Materials, Results of Pricing Objectives Exercise
Develop Revenue Requirements -
Financial Data and Forecast Review. The Project Team will review historical revenues and
expenditures for each system for the last 3-5 years to identify significant cost factors and trends.
The Project Team will also review AUD's current operating and capital budgets and financial
forecasts in order to understand the current cost structure, and to identify key forecast
assumptions for development of a baseline financial forecast and sensitivity analyses.
Financial Forecast Development. Annual revenue requirements will be projected for the
study period. Revenue needs will include current revenue funded capital projects, debt service
(existing and any projected), O&M expenses (including indirect and direct administrative costs)
and policy-related requirements (e.g. funding of annual renewal and replacement expense and
reserves). Projections will incorporate price inflation and account for new O&M expense
requirements occasioned by installation of new capital facilities or changing regulatory
requirements. Miscellaneous revenues including impact fees, other charges, and interest income
will be projected and deducted from total revenue requirements to determine annual revenue
required from user rates. The annual rate revenue requirements will be compared to projections
of rate revenue under the current rate structure.
20 OF 34 REVISION DATE: June 2011
- UTILITIES DEPARTMENT
_,� --'ii� �
G � U B G T A
Financial Policy Development. AUD has historically recognized the importance of financial
policies, which helped lead to favorable ratings for its Series 2001 and 2004 bond issues. 'The
Project Team will meet with AUD staff to discuss the Department's current financial policies
addressing, for example, targeted debt service coverage and fund balance levels, and annual
renewal and replacement funding. Any changes to the current policy framework will be
evaluated in the context of industry standards and implications for the development of revenue
requirements.
Technical Workshop 2 Strategic Financial Planning/ Public Engagement Planning:
The objective of this workshop is to work with staff to evaluate the outcomes of initial cash
flow modeling, test key assumptions, identify and evaluate capital project schedule
alternatives, and identify system-wide rate increase scenarios. This workshop involves a
detailed and technical review of overall system financing options that may provide the
foundation for discussions with key stakeholders and the Commission. Furthermore, with a
fuller sense of the overall system-wide financing picture, this workshop may also provide for
more detailed and specific planning of public engagement activities including outlining of key
messages and development of informational materials.
Commission/ Stakeholder Workshop 1- Strategic Financial Planning: The completion
of the revenue requirements modeling is often an opportune time for engagement of key
stakeholders and/or the Commission. A strategic financial planning workshop may be used to
outline projected system financing requirements and potential system-wide rate adjustments
required to finance capital improvement projects identified through AUD's master plann;ng
processes. These workshops may also be used to educate attendees about the composition of
rate revenue requirements, importance of financial policy compliance and impacts of
assumptions related to consumption patterns, account growth and capital financing terms.
Deliverable 3: Financial Plan Component of Model
Conduct Cost Allocations
Allocate Costs to System Functions. Utilities incur varying levels of costs to perform
different system functions. The functionalization process involves categorizing costs according
to the functions performed in order to more appropriately assign costs to customer classes.
Wastewater functions typically include treatment (often subdivided by unit process), collection,
pumping, industrial pre-treatment and customer service. Water system functions may include
supply, treatment, storage, pumping, transmission and distribution, fire protection, and meter
and customer-related service. Leveraging the knowledge of the Augusta systems of W.K.
Dickson, the Project Team will work with AUD staff to determine appropriate functional -
categories and factors. Criteria for allocating costs will be based on an evaluation of the design
and function of system facilities.
joint & Specific Cost Groupings Functional costs will be grouped by joint and specific
categories. This process allows for certain types of costs (e.g. costs related to providing service
21 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� - ;i�=--a[-
G �U R G ! A
to Fort Gordon or specific costs associated with monitoring industrial waste users) to be
allocated directly to benefiting customers. GRG/RFC, W.K. Dickson and AUD staff will work -
collaboratively to determine the various levels of service provided within the system, and to
group and allocate costs accordingly.
Classification of Costs by Service Characteristic. Costs are classified in terxns of the base
water quantity used (water) or discharged (wastewater), and costs associated with meeting
peak usage demands, or addressing wastewater strengths. Customer service, billing, and meter
costs are allocated based on the number of customers served, and the sizes of ineters in service.
Allocate Costs to Customer Classes. The selection of a customer classification system is
critical to the establishment of an equitable cost of service framework. In addition to equity
considerations, the selection of customer classes will need to consider data availability and
billing system capabilities, so that customer demands may be estimated, and if desired, rates
charged accordingly. Additionally, classifications may be established to enable tailored pricing
for targeted user groups (e.g., low-income customers).
The customer characteristics analysis will likely include analysis of water system demand
patterns and establishment of peaking factors. For the wastewater system, we will review and
analyze wastewater system flow levels and patterns, influent strengths, and other
characteristics (e.g. geographical location) by customer class. Data sources generally include
customer billing information, system operations reports, engineering studies, and industrial
monitoring data. Once the customer classification system has been determined, units of service
will be estimated for each customer class based on available data. Unit costs will be calculated
for each cost component, and costs allocated to each class in proportion to their use of the
systems.
Technical Workshop 3- Cost Allocation: - The objective of this workshop is to work with
staff to make sure that costs to be recovered through user rates are properly allocated among
functions and customer classes. A workshop setting for this work has proven to be an
efficient and effective means to review design and operational considerations, informed by
the collective knowledge and experience of AUD and Project Team staff.
Rate Design
Evaluate Rate Structure Alternatives. The Project Team will evaluate the current rate
structures and potential alternatives with respect to the Departxnent's specific criteria, which
may include: conservation, revenue adequacy and stability, rate equity, and affordability. The
Project Team will also provide insight on experiences of other utilities. Alternative rate
structures to be considered will specifically address water conservation imperatives and
affordability considerations.
Calculate Rates and Sample Bills. Based on the cost of service analysis, rates will be -
calculated for each customer class under the current rate structure, as well as selected
22 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-% - i��
G �(1 R G I A
alternatives. For each alternative, the Project Team will verify that the revenue generated equals
the cost of service, and we will compare revenue by class under the alternative rates with
existing revenue collections. The Project Team will prepare sample monthly bills for different
usage levels within each class to illustrate the impacts of the alternative rate scenarios across
and within classes.
Technical Workshop 4- Rate Design: - The objective of this workshop is to review with
staff customer user characteristics which provide a basis for alternative rate structures, define
the calculations used to determine cost-of service based rates and charges, and identify
alternative rate structures to generate system revenue requirements. In addition, the Project
Team will examine customer bill ixnpacts of the various rate structures that are under
consideration.
High Strength or Extra-Strength Surcharges
AUD is interested in having high strength or extra-strength charges calculated for waste
contributions whose pollutant strengths are in excess of regular domestic strength waste. In
general, such high strength charges are based on the unit costs for strength handling
determined through the general cost allocation process and specific costs incurred to handle
high-strength waste. We will generate and provide cost templates for the calculation of these
fees for BOD, TSS, nitrogen and other parameters, as requested. We will also provide guidance
on setting the limits for which the charges for BOD, TSS and nitrogen become effective.
Commission/ Stakeholder Workshop 2 Water and Sewer Rate Design: The
completion of the core cost-of-service analysis and rate design option evaluation presents
another opportunity for engagement of key stakeholders and / or the Commission for
fundamental policy decision-making. AUD has the option of recovering allocated revenue
responsibilities from customer classes in innumerable ways - many which may advance a
variety of public policy objectives. Within boundaries defined in Technical Workshop 4, the
Project Team will conduct workshops that review pricing objectives, outline rate design
alternatives and delineate the customer bill impacts associated with given alternatives.
Deliverable 4: Rate Structure Design Memorandum
Rate Models
The Project Team will custom build a spreadsheet-based rate model in Microsoft Excel. Exact
model specifications will be defined collaboratively with AUD staff but typically feature:
a. Dedicated Input Areas. The model will contain a clearly labeled'Assumptions' section. This
will allow the user to modify significant assumptions that impact utility financial performance.
23 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-� , i ��
G �`U R G_ I A
The model will include the flexibility to change key assumptions including: customer growth,
cost inflation, capital funding mix, debt financing terms, capital project timing and costs, and
required cash balances or contingencies. Data input sections will emulate, to the extent
practicable, City budget and reporting formats.
b. Financial Plans / Cost-of-Service Analyses. Based on user-entered assumptions and data, the -
rate models will be designed to calculate revenue requirements, functional cost allocations, unit
costs, and alternative rate structures for all customer classes.
c. Summary Tables /Graphics will include utility fund cash flow summaries, revenue
requirements results, cost-of-service results, rate tables, and sample customer bills. Other
summary reports and graphics can be designed and incorporated into the model.
Deliverable 5: Preliminary Results of Proposed Rate Structure Changes and Rates
Model Training
Model training will be provided for AUD staff both through the collaborative model
development process and a dedicated on-site workshop. This training will consist of an
overview of the rate model functions and results interpretation, as well as detailed sessions to
ensure that assigned staff can perform model updates and run specified, anticipated, "what-if"
scenarios.
Technical Workshop 6 - Model Training - As noted above, the objective of this workshop
is to train staff in the use of the rate and financial planning model that is built as part of the
rate study and is a formal deliverable of the project. We will conduct a half-day training
program with staff in the use of the model.
Deliverable 8: Draft Reports/Commission Presentation
Task #2 - Miscellaneous Fee Review and Update
The primary objective of this component of the study will be to review and calculate
appropriate impact fees. The Project Team will also take this opportunity to review the City's
other miscellaneous fees such as late payment charges, turn-ons/turn-offs, etc.
Impact Fee Review
As cost-of-service based water and wastewater rates may help ensure equity across different
classes of system users, ixnpact fees may be an important mechanism to ensure equitable
distribution of cost responsibilities between existing and prospective users. Impact fees are
assessed to recover costs incurred to provide capacity to accommodate development and have
24 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-/= � i ��
G 'O R G I A
become an integral component of the capital funding plans of many water and wastewater
utilities throughout the country. The Project Team will provide a general review of both the
policy issues and methodological approaches to impact fee development and conduct an impact
fee analysis. Specific methodological issues typically include:
- Allocation of existing and planned capital improvement costs among existing -
customers and future customers
- System financing considerations (including debt service credit calculations)
- Basis for assessing impact fees for specific development types and sizes
- Developer reixnbursement policies
Technical Workshop 5a - Impact Fee Analyses: The objective of this workshop will be
to review the legal requirements for fee calculations in the State of Georgia, the outcomes
of cost allocations defining capital costs associated with providing capacity for new
development, the mechanics of debt service credit calculations, the relative advantages and
disadvantages of assessment basis alternatives and impact fee fund management
requirements.
Other Miscellaneous Fees Review
The goal of this task is to inventory and analyze existing miscellaneous fees and charges to
determine the most appropriate methodology for validating these fees and services, and to
recommend new miscellaneous fees and charges not currently assessed by AUD.
Utilities typically collect several non-user fees or charges such as: late payment charges,
returned check charges, new account fees, disconnection for non-payment charges, tap fees, etc.
As a first step, the Project Team will review each of the fees currently collected by AUD and the
methodology by which each fee was developed (if available). The Project Team will interview
AUD staff in order to gain any insight into the prior calculation of each fee and the purpose for
each of the fees. It will then inventory each of these fees including the level of the fee, the date
the fee become effective and the level of revenues generated from each of the fees. The second
step will involve determining the appropriate methodology for validating each fee. The
majority of the fees would be validated using one of several of these approaches:
- Inflationary adjustment
- Benchmarking with peer utilities
- Estimated costs for required activities
As a last step, the Project Team will compare the current fees to those offered by other
communities (local and regional) in order to determine if there are additional miscellaneous fees
and charges that can be assessed by AUD (or whether selected fees should be terminated). The
Project Team has performed numerous miscellaneous fee benchmarking studies for other
similar utilities and will use its knowledge and experience to determine opportunities to
implement new fees or simplify AUD's current fee structure.
25 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-�= � ;i��
G � O R G I A
Deliverable 6: Results of Impact Fee Analysis and Miscellaneous Fee Review
Task # 3- Affordability Issues and Public
Involvementf Education
Evaluate Low-Income Affordability Issues
Nationally, as wastewater rates have continued to increase at roughly double the rate of
inflation over the last decade, concerns about impacts on low-income customers have come to
the forefront. Many utilities have both structured rates and implemented affordability programs
to ensure the availability of service to meet health and sanitary needs for all ratepayers. A
review of low-income affordability program options may enable the Department to address this
issue proactively. Suggested steps include:
- Review of industry practices. The Project Team will prepare a review of
affordability program options implemented elsewhere in North America and address
both policy and implementation considerations;
- Program implementation guidance. Based on Department direction on what (if
any) programs to implement, the Project Team will provide guidance on specific
program policies and procedures;
- Affordability Fee development - We will also identify alternative approaches to
financing efforts to address affordability, whether through the AUD rate structure,
contributions or program funding.
- Technical Workshop 5b - Affordability Program Options Workshop: - In conjunction
with one of the other technical workshops (for budgeting purposes 5a), GRG/RFC will conduct
a workshop with staff to review priorities related to affordability for disadvantaged customers.
The Project Team will review low income affordability program options and experiences of
other utilities in the country, potential legal considerations associated with affordability
program fees and funding, and program implementation/administration considerations that
will enable AUD to address affordability proactively.
Deliverable 7: Affordability Options Memorandum and Draft Program Guidelines
Commission/ Stakeholder Workshop 3 AUD Rates, Fees and Public Outreach: With
the completion of all of the technical components of the study, there is the opportunity to
engage key stakeholders and/ or the Commission on the breadth of AUD financing
considerations, perhaps with emphasis on the use of impact fees, miscellaneous fees and
affordability fees and program funding. This workshop may be particularly useful in
portraying a complete picture of how AUD's financing strategy is designed to ensure the
integrity of system finances and provide for an equitable distribution of cost responsibilities.
26 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� - �i�=-�-
G '(3 R iP, I A
Public Involvement�Education
For this rate study to have value to AUD and its customers, recommendations developed
through collaboration of the Project Team and AUD staff must be approved and implemented.
To enhance the likelihood of achieving approval of the recommendations, the Project Team has
found that effective education and participation of key decision-makers over the course of the
study enhances understanding and acceptance of study outcomes. Accordingly, as noted
throughout the discussion of specific steps of the project approach the Project Team has
identified opportunities for Corrunission/ stakeholder workshops. In addition, the Project Team
has budgeted for the study to be formally presented to City/County management and the
Commission. The Project Team is also prepared to assist the City with the development of
informational collateral materials for public education efforts.
Website Bill Calculator
Specifically, as part of the project scope, the Project Team will develop a bill calculator to be
posted on AUD's website that will enable AUD customers to input varying amounts of water
usage and customer type. A bill will be calculated based on information input by the customers.
Proj ect Reporting
Technical memoranda may be prepared to review and document specific issues (e.g. rate design
options). In any event, the project will be documented by a project report reviewing all
assumptions, supporting data and calculations performed to derive the study results. The
project report will review the development of rate revenue requirements from AUD's available
budget and capital improvement program information as summarized in the strategic financial
plan. The report will also provide documentation for the basis of the distribution of system
costs to utility funciions and service characteristics and the distribution of costs to customer
classes. The report will review rate design options, their evaluation based on the pricing
objectives delineated in Workshop #1, and the relative advantages of the option recommended
for AUD implementation.
A draft of the project report will be submitted to AUD for review in advance of presentation.
Based on this report and direction of AUD staff, the study results and recommendations will be
presented to City management and the Commission as requested (2 presentations have been
budgeted - assuming one for City Management and one for the Commission). Following
presentation of the study results, final reports as well as final revisions to the models used to
calculate cost-of-service rate options and impact fees will be provided to AUD. These final
deliverables, with associated training, will provide complete documentation of the study and
important resources for future AUD updating of cost-of-service and impact fee analyses.
27 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
-/= � ;�=�-
G ' Q R G I A
Deliverable 9: Final Project Report - providing full documentation of study analyses, rate
design options and associated customer bill impacts, and study recommendations.
Deliverable 10: Final Rate and Impact Fee Models - providing infrastructure for regular
updating of the cost-of-service and impact fee analyses. These models will be structured to _
facilitate AUD staff analyses with limited or no consultant review and oversight. They will also
generate readily understood charts and table that highlight key study results (e.g., bill impacts,
inter-class subsidies, etc).
28 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—/= � :�'�-
G `� B G I A
ATTACHMENT B - COMPENSATION
The CITY shall compensate the CONSULTANT for services, which have been authorized by the
CITY under the terms of this Agreement.
The CONSULTANT may submit to the CITY a monthly invoice, in a form acceptable to the
CITY and accompanied by all support documentation requested by the CITY, for payment for
the services, which were completed during the billing period. The CIT'Y shall review for
approval said invoices. The CITY shall have the right to reject payment of any invoice or part
thereof if not properly supported, or if the costs requested or a part thereof, as determined
solely by the CITY, are unreasonably in excess of the actual phase of completion of each phase.
The CITY shall pay each such invoice or portion thereof as approved, provided that the
approval or payment of any such invoice shall not be considered to be evidence of performance
by the CONSULTANT to the point indicated by such invoice, or of receipt of acceptance by the
CITY of the service covered by such invoice. The CITY shall pay any undisputed items
contained in such invoices. -
Each invoice shall be accompanied by a letter progress report describing the total work
accomplished for each phase and any problems, which have been encountered, which may
inhibit execution of the work. The CONSULTANT shall also submit an accurate updated
schedule, and an itemized description of the percentage of total work completed for each phase
during the billing period.
When the CITY authorizes the CONSULTANT to proceed with additional work authorized in a
Task Order, it agrees to pay the CONSULTANT for work completed, on the basis of the
standard billing rates shown in Attachment B to the Contract of those principals and employees
engaged directly on the work.
Overtime may be performed at the discretion of the CONSULTANT, but the premium time
portion of the overtime will not be billed to the CITY unless the CONSULTANT has requested
acceleration of the scheduled work in writing.
Table 1 provides a summary of the Budget Estimate to perform each task item and is used to
reference percent complete of each project phase.
The fee for the scope of services described herein shall not exceed $199,520.00 based on the
Budget Estimates below. Fees will be billed hourly based on CONSULTANTS current rate -
schedule. CONSULTANT may alter the distribution of fees between but may not exceed the
totalfee.
29 OF 34 REVISION DATE: June 2011
- UTILITIES DEPARTMENT
_� �, i
G ' O � C I A
TABLE 1- Budget Estimate
Task # 1 Cost-of-Service Rate Develo ment
Pro'ect Initiation, Mana ement, and QA/QC $17,070
Develo Revenue Re uirements / Strate 'c Financial P1amlin $12,200
Cost Allocations $14,680
Rate Desi $8,230
Conservation Fees $2,280
Hi h-Stren Surchar es $5,680
Rate Models $16,460
Model Trainin $3,800
Associated Worksho s $29,260
Ex enses $11,490
Subtotal $121,150.00
Task # 2 Miscellaneous Fee Review
Im act Fee Anal sis $10,960
Other Miscellaneous Fees Review $ 7,560
Associated Worksho s $6,620
Ex enses $ 3,220
Subtotal $28,360.0
Task #3 Affordabili and Public Involvement/Education
Affordabili Pro am Develo ment $ 6,300 _
Affordabili Fees $ 2,280
Commission / User Grou Worksho s $ 16,260
Website Calculator $5,12
Associated Worksho s $6,060
Ex enses $2,930
Subtotal $38,950.00
*'� Pro' ect Re ortin
Re ort / Recommendation Presentations $ 8,520
Ex enses $2,540
Subtotal $11,060.00
Total Fee $199,520.00
30 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_� � i�--ct-
G f � � G 1 A
ATTACHMENT C- LISTING OF KEY PERSONNEL
CONSULTANT shall provide qualified personnel to perform its work. 'The list of key
personnel below, including a designated Project Manager will not change or be reassigned
without the written approval of the CITY. Those personnel committed for this work are as
follows:
Personnel Relationship to project Firm Affiliation
Eric Rothstein Project Manager Galardi Rothstein Group
Peiffer Brandt Technical Advisor Raftelis Financial Inc.
Debbie Galardi Staff SupportfTechnical Galardi Rothstein Group
Advisor
Melissa Levin Lead Consultant Raftelis Financial Inc.
David Fox Staff Consultant Raftelis Financial Inc.
Trey Wingate Cost Allocafiion W.K. Dickson
Gordon Smith Cost Allocation W.K. Dickson
31 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
_,�_ -' :�=�--
G r f? $ G I A
ATTACHMENT D- SCHEDULE FOR PERFORMANCE
Table 2 is provided as an estimated schedule for completion based on notice to proceed by
December 15, 2011. The nature of this project is partially based on AUD's staff's level
availability and dates given are tentative.
TABLE 2- Estimated for Schedule Completion Dates
Tasks Estimated Com letion Date
Task # 1 Cost-of-Service Rate Develo ment
Pro'ect Initiation Dec 15, 2011= Jan 15, 2012
Deliverable 1: Kick-off Meetin A enda / Data Re uest List December 15, 2011
Workshop 1: Pricin Ob'ective Worksho Week of Jan 16+�, Date TBD
Deliverable 2: Results of Pricin O'ectives Exercise Januar 23rd, 2012
Develo Revenue Re uirements Jan 15, 2012 - Feb 15, 2012
Deliverable 3: Financial Plan Com onent of Model Feb 15, 2012
Workshop 2: Strategic Financial Planning/ Public Communication
Plann;n Week of Feb 13� Date TBD
Cost Allocations Jan 15, 2012 - Mar 15, 2012
Workshop 3: Cost Allocation Worksho Week of Feb 13� Date TBD
Rate Desi Feb 15, 2012 - Mar 15, 2012
Deliverable 4: Rate Structure Desi Memorandum March 1, 2012
Workshop 2: Rate Desi O tions Worksho Week of Feb 13� Date TBD
Deliverable 5: Preliminary Results of Proposed Rate Structure
Chan es and Rates A ri11, 2012
Rate Models/Pro'ect Re ortin
Deliverable 8: Draft Re orts/Council Presentation Ma 15,2012
Deliverable 9: Final Re orts June 18, 2012
Deliverable 10: Final Rate and Im act Fee Models June 18, 2012
32 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� � ;i�=-a.-
c 'v � � i n
ask #1 -
cont. Model Trainin
Workshop 6: Model Trainin Worksho Week of June 18+� Date TBD
Task # 2 Miscellaneous Fee Review
Im act Fee Anal sis Feb 15, 2012 - Ma 15, 2012
Workshop 5a: Im act Fee Anal sis Week of A r 16+� Date TBD
Deliverable 6: Results if Im act Fee Anal sis Ma 15, 2012
Task #3 Affordabili and Public Involvement/Education
Affordabili Pro am Develo ment
Workshop 5b: Affordabili Pro am O tions Worksho
Deliverable 7: Affordability Options Memorandum and Draft
Pro ram Guidelines
Public En a ement TBD
33 OF 34 REVISION DATE: June 2011
UTILITIES DEPARTMENT
—� � :i�!-�
G ' O R G I A
ADDITIONAL SERVICES:
1. A revision to the contract documents to extend the limits of the project after this
AGREEMENT has been executed by the CITY.
2. Other revisions required by the CITY or other government agency at their request will be
considered an additional service.
3. Out-of-town meetings or conferences required of the CONSULTANT by the CITY not
assumed in project.
4. Phase 3- Business Plan Proposed Scope of Services
5. Additional meetings, workshops, and tasks not specifically identified herein
6. Other not described above, as approved by the CITY.
34 OF 34 REVISION DATE: June 2011