HomeMy WebLinkAboutDADDEL COHOON & ASSOC - 2001-03-19�. CITY OF HUNTINGTON BEACH
c 2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE: April 25, 2001
TO: Darrel Cohoon & Associates
Name
726 13th Street
Street
Huntington Beach, CA 92648
City, State, Zip
ATTENTION: Darrel Cohoon
DEPARTMENT:
REGARDING: Professional Services
Contract
See Attached Action Agenda Item E-21 Date of Approval 3-19-01
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
G�xl a4re�y-
Connie Brockway
City Clerk
Attachments: Action Agenda Page x Agreement x Bonds
CC: R. Beardsley
Name
L. Daily
Name
Name
Name
C. Mendoza
RCA
Deed
DPW
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x
Department
RCA
Agreement
DPW
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x
Department
RCA
Agreement
Agreement
Department
RCA
Agreement
Department
RCA
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Risk Management Dept.
Insurance x
Other
x
Insurance Other
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Insurance Other
Insurance Other
Insurance Other
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Insurance
(Telephone: 714-536-5227 )
Council/Agency Meeting Held:
Deferred/Continued to:
)'Approved ❑ Conditionally Approved ❑ Denied
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gyp- City C erk's Signature
Council Meeting Date: March 19, 2001
Department ID Number: PW 01-035
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBE
SUBMITTED BY: RAY SILVER, City Administrator jpO
PREPARED BY: ROBERT F. BEARDSLEY, Director of P b c orks�
SUBJECT: Approve Contract with Darrel Cohoon and Associates for
Development of Methodology for Implementation of a Sewer Service
Charge.
Statement of issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Should the City enter into a professional services agreement with
Darrel Cohoon and Associates to develop the methodology and rate structure for a sewer
service charge?
Funding Source: Funds in the amount of $32,450 are available in Public Works
NPDES/IIMP Contract Services 10085102.69365.
Recommended Action: Motion to:
1. Approve and authorize the Mayor and City Clerk to execute the Professional Services
Contract between the City of Huntington Beach and Darrel Cohoon and Associates for
Development of Methodology for Implementation of a Sewer Service Charge;
2. Waive the Workers Compensation Insurance requirements;
3. Approve additional wording of negligent performance to the Hold Harmless contract
clause; and
4. Authorize the Director of Public Works to expend up to $32,450 for $29,500 contract costs
plus 10% contingency for development of a methodology for implementation of a sewer
service charge.
Alternative Action(s): 1. Do not approve contract and direct staff to request proposals
from other qualified firms. This action will delay the approved sewer charge implementation
schedule. 2. Do not approve contract and direct staff on how to proceed.
4�
•QUEST FOR COUNCIL ACAN
MEETING DATE: March 19, 2001 DEPARTMENT ID NUMBER: PW 01-035
Analysis: On February 20, 2001, the City Council directed staff to proceed with
developing a sewer service charge. Tasks include structuring of a proposed rate,
programming by City's Information Technology Staff, and drafting of a proposed ordinance
by the City Attorney. In order to maintain the implementation schedule, these tasks must
be completed by early May.
In accordance with the established schedule, staff was directed to return to the City Council
with a professional services contract_ with Darrel Cohoon and Associates for services
relating to establishing the rate structure and preparing the reports needed to demonstrate
that the charge is reasonably related to the cost of the service.
In a preliminary report, Darrel Cohoon & Associates evaluated a monthly sewer service
charge as a method of funding improvements and maintenance for the sewer system.
Alternative rate structure methodologies and billing methods were included as part of the
effort. The preliminary report did not address specific information relating to cost of services
as advised by the City Attorney.
The scope of work included in this agreement includes calculating charges for each of the
identified customer categories. The final report will include the recommended charges and
document the methodology used in calculating them. In addition, Mr. Cohoon will develop
recommendations for updating charges in the future as advised by the City Attorney.
As a Sole proprietor, Mr. Cohoon is unable to secure Workers Compensation Insurance;
therefore, it is requested that the insurance requirement be waived.
Mr. Cohoon requests modification of the Hold Harmless contract clause by the addition of
the word "negligent" in front of "performance." Insurance companies will not write
professional liability insurance for the broad coverage included in the contract.
Darrel Cohoon & Associates was selected through a competitive process for preparation of
a preliminary report evaluating a monthly sewer service. This work will be an extension of
the work performed under the previous work authorization.
Environmental Status: Not applicable
Attachments :
1 Professional Services Agreement between the City of Huntington
Beach and Darrel Cohoon and Associates
RCA Author: L. Daily ext 5599
01-35 March 19 Daily (Darrel Cohoon-Sewer Fee).doc -2- 03/14/01 9:40 AM
ATTACHMENT #1
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a
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
DARREL COHOON & ASSOCIATES FOR DEVELOPMENT OF
METHODOLOGY FOR IMPLEMENTATION OF SEWER SERVICE CHARGE
Table of Contents
Scopeof Services.....................................................................................................I
DesignatedContacts.................................................................................................I
Time of Performance...............................................................................................2
Compensation..........................................................................................................2
Priorities...................................................................................................................2
ExtraWork...............................................................................................................2
Methodof Payment..................................................................................................2
Disposition of Plans, Estimates and Other Documents...........................................4
HoldHarmless.........................................................................................................4
Workers' Compensation Insurance...........................................................................5
General Liability Insurance......................................................................................5
Professional Liability Insurance..............................................................................6
Certificates of Insurance..........................................................................................7
Independent CONSULTANT..................................................................................8
Termination of Agreement.......................................................................................8
Assignment and Subcontracting................................................................................8
Copyrights/Patents....................................................................................................9
CityEmployees and Officials..................................................................................9
Notices.....................................................................................................................9
Modification.............................................................................................................9
SectionHeadings.....................................................................................................10
Interpretation of Agreement.....................................................................................10
DuplicateOriginal....................................................................................................I
I
Immigration..............................................................................................................11
Legal Services Subcontracting.................................................................................I
I
Attorney's Fees.........................................................................................................
I I
Entirety......................................................................................................................12
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
DARREL COHOON & ASSOCIATES FOR DEVELOPMENT OF
METHODOLOGY FOR IMPLEMENTATION OF SEWER SERVICE CHARGE
THIS Agreement is made and entered into this 19th day of March 2001,
by and between the City of Huntington Beach, a municipal corporation of the State of California,
hereinafter referred to as "CITY," and DARREL COHOON & ASSOCIATES, a sole
proprietorship, hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to engage the services of a consultant to assist in development of
methodology and rate structure for implementation of a monthly sewer service charge; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of the
Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service
contracts have been complied with; and
CONSULTANT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
SCOPE OF SERVICES
CONSULTANT shall provide all services as described in the CONSULTANT's
Proposal dated February 1, 2001 (which embodies the Scope of Work is hereinafter referred to as
Exhibit "A") and is attached hereto and incorporated into this Agreement by this reference. These
services shall sometimes hereinafter be referred to as the "PROJECT."
2. DESIGNATED CONTACTS
CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this Agreement.
CONSULTANT hereby designates Darrel Cohoon, who shall represent it and be its
sole contact and agent in all consultations with CITY during the performance of this Agreement.
01 agree/cohoon/2/23/01
3. TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of CONSULTANT are to
commence as soon as practicable after the execution of this Agreement and all tasks specified in
Exhibit "A" shall be completed no later than three months from the date of this Agreement. These
times may be extended with the written permission of CITY. The time for performance of the tasks
identified in Exhibit "A" are generally to be shown in the Scope of Services on the Work
Program/Project Schedule. This schedule may be amended to benefit the PROJECT if mutually
agreed by CITY and CONSULTANT.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY agrees to
pay CONSULTANT a fee not to exceed Twenty Nine Thousand Five Hundred Dollars
($29,500.00).
PRIORITIES
In the event there are any conflicts or inconsistencies between this Agreement, the
CITY's RFP, or the CONSULTANT's Proposal, the following order'of precedence shall govern: (1)
Agreement, (2) the CONSULTANT's Proposal, and (3) the CITY's RFP.
6 EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A" or
changes in the scope of services described in Exhibit "A", CONSULTANT will undertake such
work only after receiving written authorization from CITY. Additional compensation for such extra
work shall be allowed only if the prior written approval of CITY is obtained.
7. METHOD OF PAYMENT
A. CONSULTANT .shall be entitled to progress payments toward the fixed fee
set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A."
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B. Delivery of work product: A copy of every memorandum, letter, report,
calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to
demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on
any such product, CITY shall identify specific requirements for satisfactory completion. Any such
product which has not been formally accepted or rejected by CITY shall be deemed accepted.
C. CONSULTANT shall submit to CITY an invoice for each progress payment
due. Such invoice shall:
1) Reference this Agreement;
2) Describe the services performed;
3) Show the total amount of the payment due;
4) Include a certification by a principal member of CONSULTANT's
firm that the work has been performed in accordance with the
provisions of this Agreement; and
5) For all payments include an estimate of the percentage of work
completed.
Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is
making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY
shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of
receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does
not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -
approval within seven (7) calendar days of receipt of the invoice, and the schedule of performance
set forth in Exhibit "A" shall be suspended until the parties agree that past performance by
CONSULTANT is in, or has been brought into compliance, or until this Agreement is terminated as
provided herein.
01 agree/cohoon/2/23/01 3
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D. Any billings for extra work or additional services authorized by CITY shall
be invoiced separately to CITY. Such invoice shall contain all of the information required above,
and in addition shall list the hours expended and hourly rate charged for such time. Such invoices
shall be approved by CITY if the work performed is in accordance with the extra work or additional
services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is
accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties
concerning payment of such an invoice shall be treated as separate and apart from the ongoing
performance of the remainder of this Agreement.
8. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS
CONSULTANT agrees that all materials prepared hereunder, including all original
drawings, designs, reports, both field and office notices, calculations, maps, memoranda, letters and
other documents, shall be turned over to CITY upon termination of this Agreement or upon
PROJECT completion, whichever shall occur first. In the event this Agreement is terminated, said
materials may be used by CITY in the completion of the PROJECT or as it otherwise sees fit. Title
to said materials shall pass to CITY upon payment of fees determined to be earned by
CONSULTANT to the point of termination or completion of the PROJECT, whichever is
applicable. CONSULTANT shall be entitled to retain copies of all data prepared hereunder.
9. HOLD HARMLESS
CONSULTANT shall protect, defend, indemnify, save and hold harmless CITY, its
officers, officials, employees, and agents from and against any and all liability, loss, damage,
expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out
of or in connection with CONSULTANT's negligent performance of this Agreement or its failure to
comply with any of its obligations contained in this Agreement by CONSULTANT, its officers,
agents or employees except such loss or damage which was caused by the sole negligence or willful
01 agree/cohoon/2/23/01 0 4
misconduct of CITY. CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees
incurred by CITY in enforcing this obligation.
10. WORKERS' COMPENSATION INSURANCE
Requirement waived by City Council action 3/19/01
11. GENERAL LIABILITY INSURANCE
In addition to the workers' compensation insurance and CONSULTANT's covenant
to indemnify CITY, CONSULTANT shall obtain and furnish to CITY, a policy of general public
liability insurance, including motor vehicle coverage covering the PROJECT. The policy shall
indemnify CONSULTANT, its officers, agents and employees, while acting within the scope of
their duties, against any and all claims arising out of or in connection with the PROJECT, and shall
provide coverage in not less than the following amount: combined single limit bodily injury and
property damage, including products/completed operations liability and blanket contractual liability,
of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated
general aggregate limit, the aggregate limit must be no less than $1,000,000 for this PROJECT.
The policy shall name CITY, its agents, its officers, employees and volunteers as Additional
Insureds, and shall specifically provide that any other insurance coverage which may be applicable
to the PROJECT shall be deemed excess coverage and that CONSULTANT's insurance shall be
primary.
Under no circumstances shall the above -mentioned insurance contain a self -insured
retention, or a "deductible" or any other similar form of limitation on the required coverage.
12. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall furnish a professional liability insurance policy covering the
work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's
01 agree/cohoon/2/23/01 5
professional liability in an amount not less than $1,000,000 per occurrence and in the aggregate. A
claims -made policy shall be acceptable if the policy further provides that:
A. The policy retroactive date coincides with or precedes the initiation of the
scope of work (including subsequent policies purchased as renewals or
replacements).
B. CONSULTANT will make every effort to maintain similar insurance during
the required extended period of coverage following project completion,
including the requirement of adding all additional insureds.
C. If insurance is terminated for any reason, CONSULTANT agrees to purchase
an extended reporting provision of at least two (2) years to report claims
arising from work performed in connection with this Agreement.
D. The reporting of circumstances or incidents that might give rise to future
claims.
13. CERTIFICATES OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT shall
furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverages as required by this Agreement; the certificates shall:
A. provide the name and policy number of each carrier and policy;
B. shall state that the policy is currently in force; and
C. shall promise that such policies shall not be suspended, voided or canceled by
either party, reduced in coverage or in limits except after thirty (30) days'
prior written notice; however, ten (10) days' prior written notice in the event
of cancellation for nonpayment of premium.
01 agree/cohoon/2/23/01 6
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CONSULTANT shall maintain the foregoing insurance coverages in force until the
work under this Agreement is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverages shall not derogate
from the provisions for indemnification of CITY by CONSULTANT under the Agreement. CITY
or its representative shall at all times have the right to demand the original or a copy of all said
policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on
all insurance hereinabove required.
14. INDEPENDENT CONSULTANT
CONSULTANT is, and shall be, acting at all times in the performance of this
Agreement as an independent CONSULTANT herein and not as an employee of the CITY.
CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes,
social security, state disability insurance compensation, unemployment compensation and other
payroll deductions for CONSULTANT and its officers, agents and employees and all business
licenses, if any, in connection with the services to be performed hereunder.
15. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike manner.
CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and
whether or not PROJECT is fully complete. Any termination of this Agreement by CITY shall be
made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the
event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at
the option of the CITY, become its property and shall be delivered to it by CONSULTANT.
01 agree/cohoon/2/23/01 7
16. ASSIGNMENT AND SUBCONTRACTING
This Agreement is a personal service contract and the supervisory work hereunder
shall not be delegated by CONSULTANT to any other person or entity without the express written
consent of CITY.
17. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this Agreement.
18. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY employee in
the work performed pursuant to this Agreement. No officer or employee of CITY shall have any
financial interest in this Agreement in violation of the applicable provisions of the California
Government Code.
19. NOTICES
Any notice or special instructions required to be given in writing under this
Agreement shall be given either by personal .delivery to CONSULTANT's agent (as designated in
Section 1 hereinabove) or to CITY's Director of Public Works as the situation shall warrant, or by
enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United
States Postal Service, addressed as follows:
TO CITY:
TO CONSULTANT:
Director of Public Works Darrel Cohoon
City of Huntington Beach Darrel Cohoon & Associates
2000 Main Street 726 131h Street
Huntington Beach, CA 92648 Huntington Beach, CA 92648
0 1 agree/cohoon/2/23/01 8
20. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid unless in
writing and duly executed by both parties.
21. SECTION HEADINGS.
The titles, captions, section, paragraph, subject headings and descriptive phrases at
the beginning of the various sections in this Agreement are merely descriptive and are included
solely for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Agreement.
22. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be
unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining
covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent
upon any other unless so expressly provided here. As used in this Agreement, the masculine or
neuter gender and singular or plural number shall be deemed to include the other whenever the
context so indicates or requires. Nothing contained herein shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation contrary to which
the parties have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to
bring it within the requirements of the law.
01 agree/cohoon/2/23/01 9
23. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the
date of its execution and delivery, be deemed an original. Each of the parties hereto shall retain an
originally signed copy hereof. Each duplicate original shall be deemed an original instrument as
against any party who has signed it.
24. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
25. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subconsultants work involving legal services, and that such legal services are expressly outside the
scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington
Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY
shall not be liable for payment of any legal services expenses incurred by CONSULTANT.
26. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and provisions of this
Agreement or to secure the performance hereof, each party shall bear its own attorney's fees.
01 agree/cohoon/2/23/01 10
scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington
Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY
shall not be liable for payment of any legal services expenses incurred by CONSULTANT.
26. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and provisions of this
Agreement or to secure the performance hereof, each party shall bear its own attorney's fees.
27. ENTIRETY
The Agreement contains the entire agreement between the parties respecting the subject
matter of this Agreement and supercedes all prior understanding and agreements whether oral or in
writing. The foregoing and Exhibit "A" attached hereto, set forth the entire Agreement between the
parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and
through their authorized offices the day, month and year first above written.
DARREL COHOON & ASSOCIATES, a sole CITY OF HUNTINGTON BEACH, a
propriet ip mu icipal corporation of the State of California
By
Darrel Cohoon, proprietor ffayor
ATTEST:
REVIEWED AND APPROVED: City Clerk 0q- 29-- / .
_ APPROVED AS TO FORM:
Cit dministrator '
�Q ity Attorney
D AND APP ED
Director of Public Works
0 1 agree/cohoon/2/23/01 I I
72613th Street
Huntington Beach, CA 92648
Phone: 714.536.1882
February 1, 2001
Mr. Robert F. Beardsley
Director of Public Works
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Dear Mr. Beardsley:
Darrel Cohoon & Associates (DCA) is pleased to submit this proposal to provide
further assistance to the City of Huntington Beach in initiating a sewer service
charge.
BACKGROUND
The City is considering this charge to pay for costs associated with:
• Repairing and replacing sewer lines
• Rehabilitating and replacing lift stations
• Funding a replacement reserve fund for sewer -related capital facilities
• Funding sewer -system maintenance costs under one of two options: (1)
funding the portion of costs that exceed historical maintenance funding levels
or (2) funding the full cost of sewer maintenance.
DCA previously developed several alternative sewer service charge approaches
and presented them in our report issued in October 2000.
On February 20, 2001 the City Council will consider a Request for Council Action
recommending further development of a sewer service charge for possible
adoption and implementation later this year. This proposal sets forth DCA's
scope of work for developing the methodology and the amounts of initial charges.
OVERVIEW OF PLANNED SEWER CHARGE APPROACH
The sewer service charge would be based on a flat -charge approach. The
methodology and basis for charges are outlined below:
Mr. Robert Beardslel •
February 1, 2001
Page 2 of 8
• There would be six categories of customers:
✓ Residential. These customers would each be charged the same flat
monthly amount. The designation "Residential" would be used the same
way that it is in the City's water -billing system. That is, any housing unit
with a dedicated water meter is categorized as Residential.
✓ Apartment. These customers would also each be charged a flat monthly
amount per unit, but that amount would be lower than the Residential
charge because of lower average sewage discharge. The Apartment
designation applies to any housing unit that shares a common meter. This
includes some individually owned townhouses, condominiums, and mobile
homes.
✓ Commercial and Industrial (two separate categories). These
customers would be charged a flat amount per month based either on the
number of equivalent dwelling units (EDUs) corresponding to the capacity
of the customer's water meter(s) or on the number of units served by each
meter, whichever is greater. The City's Water Department has already
identified for each Commercial and Industrial customer whether EDUs by
meter size or number of units is higher. The Department uses this
information for calculating the water capital surcharge. (This methodology
is discussed further under Task 5 in our work plan below.)
✓ High -Consumption Users. Commercial and Industrial customers that
use unusually high amounts of water would be reviewed individually to
determine an appropriate monthly charge based on estimated discharge
to the sewer system.
✓ Schools. Public and private schools would be charged a flat amount per
student per year. This would be calculated on the basis of the average
number of students attending each school, average discharge per student
per day, and the number of school days per year. The per -student
charge -calculation basis would be different for each of the following types
of schools: (1) grammar and middle schools, (2) high schools, and (3)
community college. The City would likely issue a single annual bill to each
school district or, in the case of private schools and Goldenwest College,
to each school.
• The sewer service charges for Schools and High -Consumption Commercial
and Industrial categories would be calculated and billed by Public Works
and/or City Treasurer personnel and not via the City water billing system.
Irrigation -only and municipal accounts would not be subject to the sewer
service charge.
An appropriate index such as the ENR construction index would be used
annually to adjust charges.
Mr. Robert Beardsle'p is
February 1, 2001
Page 3 of 8
• Any property not connected to the sewer system would be exempt from the
sewer service charge.
PURPOSE AND SCOPE OF WORK
The purpose and scope of work for the project are to:
• Identify the data points and calculation methodologies needed to calculate the
charges for each of the six customer categories.
• Calculate the dollar amount of initial monthly and annual charges for each of
the categories. This includes calculating charges for each school and for
each High -Consumption Commercial and Industrial customer. We estimate
there are approximately 20 such high -consumption customers.
• Develop the methodology for updating charges in the future.
• Document in a written report the amount of the initial charges, data points and
methodology used in calculating them, and methodology for updating them.
• Meet legal requirements associated with a sewer service charge as
determined by the City Attorney's Office.
• Present the findings described above to the City Council.
APPROACH AND WORK PLAN
Task 1. Allocate costs to customer categories.
The starting point for calculating the sewer service charge will be sewer -related
revenue requirements. The amount of revenue required has been determined by
the Public Works Department in the IIMP. Starting with the amount of revenue
required for the first year the charge will be in place, we will allocate the needed
revenue to the six customer categories listed above. In doing this, we will use
the same basic methodology we did in our previous project. That methodology
divides each category's estimated sewer discharge by total estimated discharge.
It then multiplies the total revenue required by the percentage of total discharge
allocated each to category, yielding revenue allocable to each category. The
methodology is documented beginning on page 15 of our October report and
reflected in the spreadsheet model delivered to the City along with the report.
Schools are categorized as Commercial within the water billing system. Since
they will form their own category for sewer service charge purposes, their
consumption must be estimated and subtracted from historical Commercial
water -use figures before allocations are made. (This is covered further in Task 3
below.) High -Consumption Commercial and Industrial volume will also be
estimated and subtracted from the City's historical Commercial- and Industrial -
use base. (See Task 4 below.) The remaining amount of consumption
Mr. Robert Beardsle'p •
February 1, 2001
Page 4 of 8
attributable to the Commercial and Industrial users will then be allocated to other
Commercial and Industrial users by meter -size EDUs and number of units.
In the summer of 2000 when we prepared the spreadsheet model used for
allocating costs to user categories, the water -use data for April through June
2000 was not yet available. We estimated the data for those months. In this task
we will update the model to reflect actual water use for the entire fiscal year
2000. This task also includes other minor modifications of the spreadsheet as
may be necessary to update the water -use database contained in sheets 2 and 3
of the model.
Task 2. Calculate initial charges for Residential and Apartment.
Monthly charges for Residential and Apartment customers will be calculated by
dividing the category's allocated share of total revenue required by the number of
units in each category and then dividing by 12 (months).
Task 3. Calculate initial charges for Schools.
Charges to schools will be based on their estimated sewer discharge. Sewer
discharge for each school will be determined by multiplying average daily
attendance by estimated discharge per student and then multiplying by the
number of school days per year. We will estimate the discharge per student for
each of three school levels (grammar and middle, high school, and community
college) by evaluating factors used in three to five other sewering agencies within
Southern California and by reference to published national figures. We will then
meet with representatives of Huntington Beach School District, Ocean View
School District, Huntington Beach High School District, and Goldenwest
College/Coast Community College District to determine average daily attendance
(full-time equivalent students in the case of Goldenwest), number of school days
per year, and other factors that might affect schools' sewer discharge.
We expect that private schools' charges will be calculated using the same per -
student discharge factors and number of school days as equivalent -level public
schools, but we will contact a sampling of private schools to determine if there
are any significant differences and make needed modifications.
We will then calculate charges applicable to grammar and middle schools, high
schools, and the community college, and document our assumptions and
methodology.
Mr. Robert BeardslJP •
February 1, 2001
Page 5 of 8
Task 4. Calculate initial charges for High -Consumption Commercial and
Industrial Customers.
Water Department representatives indicate that some Commercial and Industrial
users' water consumption is disproportionate to the size of their water meters.
For example, the Department representatives note, some companies have small
water meters, but run them at capacity for many hours per day. Such
companies' discharge to the sewer system is much greater than that of a small
retail establishment with the same -size water meter. On the other hand, there
may be some Commercial and Industrial customers that have large meters but
relatively low sewer discharge due to use of water in a product, cooling tower, or
for irrigation.
We will develop a set of criteria for determining whether a Commercial or
Industrial customer should be placed in the High -Consumption category. These
criteria will involve both total water consumption and the customer's estimated
return to sewer as a percentage of water consumption. Based on input from
Water Department representatives, we expect that there will be 20 to 30
customers who fall into this category. For customers in this category, we will also
develop a set of criteria for determining appropriate charges. These criteria will
be useful in establishing charges for new businesses that are opened over the
years as well as in calculating charges for existing companies.
Using these criteria, we will identify businesses that likely belong in the High -
Consumption category. We will attempt to estimate their average sewer
discharges and determine proportionate sewer service charges. Since we have
not yet developed the criteria for determining which customers will be in the High -
Consumption category, we do not know which customers will be involved.
Without knowing these customers and their water -use and sewer -discharge
patterns, we are not in a position to promise that we can calculate the charges for
all customers in this category. Cases involving irrigation, cooling towers, and
product water can become very time-consuming. We have budgeted 60 hours
for this task, and we will attempt to calculate the charges for all High -
Consumption customers within that budget. If we are not able to do so, however,
City employees, using the criteria we have developed, should be able to
complete the task.
Task 5. Calculate initial charges for All Other Commercial and Industrial
Customers.
All other Commercial and Industrial customers (those not categorized as High
Consumption) will be charged on the basis of number of EDUs corresponding to
the size of the customer's water meter(s) or the number of units (tenant spaces),
whichever is greater. One EDU is the equivalent of one 3/4-inch water meter. A
Mr. Robert Beardsley •
February 1, 2001
Page 6 of 8
single Commercial customer with one 3/4-inch meter and a single unit (e.g.
storefront business) would be charged on the basis of one EDU. If a Commercial
customer has a larger meter or more than one unit, the number of EDUs would
be determined by the meter size or number of units, whichever corresponded to
higher water capacity. For example, a 2-inch meter has the same capacity as
five 3/4-inch meters. If a customer has a 2-inch meter and three units, the
customer pays on the basis of five 3/4-inch meters. If that customer had six
units, the charge would be based on six 3/4-inch meters.
This methodology is currently used for determining the water capital surcharge
billed to customers. For the Commercial category we will divide the sewer
charge revenue allocable to Commercial by the number of EDUs/units in the
Commercial category to determine a per-EDU/unit charge. Each customer's
sewer service will then be calculated by multiplying the customer's number of
EDUs/units by the charge per EDU/unit. The same methodology will be applied
to the Industrial category.
Task 6. Confer with City Attorney regarding Legal Issues.
The City Attorney issued an opinion on November 8, 2000 regarding
requirements associated with adopting a sewer service charge. Two matters
addressed in that opinion relate to how the charge is calculated. One has to do
with providing sufficient information regarding the amounts of sewer -related
capital expenses and maintenance costs to determine an appropriate charge.
The other relates to the need to demonstrate that the capital portion of the sewer
service charge applicable to a school district does not exceed the cost of
constructing the facilities necessary to serve that district.
Regarding the sufficiency of capital and maintenance costs, the City Public
Works Department will supply sewer -related cost information. We will work with
the Department and the City Attorney's Office to ensure that the information
provided is sufficient. We will include the costs and a description of how the
charges relate to them in our report.
Regarding the allocation of costs to school districts, we will analyze the figures
supplied by the Public Works Department and show clearly in our report how the
allocation of capital costs to schools is proportionate to their sewer -related
needs. Accomplishing this assumes that average cost on a per -pupil basis, a
common approach to allocating capital costs, is deemed a satisfactory basis for
the charges charges.
In addressing both of these matters, we will meet with the City Attorney or her
staff and develop approaches that they agree meet legal requirements.
Mr. Robert Beardsleo •
February 1, 2001
Page 7of8
Task 7. Prepare and present report.
We will prepare a draft report and review it with City representatives. We will
then make needed changes and submit out final report. Our report will include:
• The amount of capital and maintenance costs required for the sewer system.
• A description of the methodologies used to calculate sewer charges for each
category of customer.
• The amount of the charges per Residential unit, Apartment unit, each High -
Consumption User, each EDU/unit as described in Task 5 above, and each
school for the first year.
• The steps that should be taken to update the charges annually.
• A statement affirming that the charge methodology is in keeping with the legal
requirements identified by the City Attorney as we understand them. (Should
the City Attorney deem that the charge structure, as outlined in this proposal
does not meet legal requirements, we will attempt to modify the approach so
that it is acceptable.)
• A diskette containing the spreadsheet model used to calculate the charges.
We will be prepared to present our findings at two meetings of the City Council or
one meeting of the Council and another of a board or commission.
STAFFING AND REFERENCES
The same consultants who conducted the previous sewer charge study will work
on this project. Darrel Cohoon will be the project manager and will conduct a
majority of DCA's work on the project. Mr. Cohoon is a management consultant
with extensive experience in wastewater issues including cost allocation, billing
approaches and return -to -sewer issues. His office is close to the Civic Center,
and he will make himself readily available to meet with City representatives.
Dale Burgoyne, PE, will assist Mr. Cohoon on the project. Mr. Burgoyne has
worked full-time on wastewater -finance issues for the past 15 years. He has
extensive experience in capital planning, project finance, cost allocation, rate
calculation, return -to -sewer issues and other matters relating to this project.
PROJECT SCHEDULE
We estimate the work described in this proposal will require six weeks to
complete, and we expect to submit our final report in six weeks from receiving a
notice to proceed.
Mr. Robert Beardsley •
February 1, 2001
Page 8 of 8
PROJECT COST
We will conduct the work on a time -and -materials basis for a not -to -exceed
amount of $29,500. We will bill actual hours worked at the rates shown below
plus out-of-pocket expenses for mileage, report reproduction and the like. We bill
after the end of each month and request payment within 30 days of submitting
invoices. Our hourly billing rates are:
Darrel Cohoon, Principal $120
Dale Burgoyne, Associate $100
We appreciate the opportunity to submit this proposal and look forward to
working with you. If I may answer any questions or be of further assistance,
please contact me at (714) 536-1882.
Very truly yours,
Darrel Cohoon, CMC
Principal
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CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE
TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
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DESCRTPTION OF OPEOMOSS11,4=068/vEma /STBCLAL
rhe certificate holder is amended to read:
City of Huntington Beach, Its Agents, Officers, and Employees
*10 day notice of cancellation for non payment of premium applies*
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SHOULD MY OF TOE AMM DZ=IZM POLICIES BE CANCKLIM BEFORE ME
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POLICY NUMBER
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75-T7-6061-1 G
OF�crnYDATE
OCT 20, 2001
OCT 20,
2001
DESCRIPTION OF
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VEHICLE
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� YES
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b. Collision
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EMPLOYER'S
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❑ YES CM NO
❑ YES
❑ NO
❑ YES
❑ NO
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COVERAGE
HIRED CAR COVERAGE
❑ YES Et NO
❑ YES
❑ NO
❑ YES
❑ NO
❑ YE3
❑ NO
Agent 8001 March 13. 2001
gkj&tuyof ortzed Representative Title Agent's Code Number Date
Name a Address of Certificate Holler Name and Address of Agent
r City of Huntington Beach r
2000 Main Street
Huntington Beach, CA 92648
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CERTIFICATE HOLDER COPY
Check if a pemlanent Certificate of Insurance for liability coverage is needed:
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Remarks:
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DESCRIPTICO OF OPZtATI/:ffiC EWSPECLAL ITEMS
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THIS ENDORSEMENT CHANGES THE POLICY_ PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - DESIGNATED PERSON OR
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This endorsement modifies insurance provided under the following: ,,JQ 6D6 10
BUSINESSOWNERS POLICY 1VV p
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Name of Per&= or organization:
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I.ts Agents, Officers, And Employees
2000 Main Street
Huntington Beach, Ca. 92648
Re: City Contract
(If no entry appears above, information reVircd to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)
WHO 15 AN INSURED (Section II) is amended to include as an insured the person or organization shown in the
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or rented to you.
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City of Huntington Beach
2O00 M Street California 92648 -
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DECLARATION of NON-EMPLOYER5TATU5
In order to comply with City Council Resolution No. 6277, you are required to Provide proof of
Workers' Compensation insurance. If you have no employees, this form must 6e signed and returned
to:
City of Huntington (')each
Risk Management Division
2000 Main Street
Huntington Beach, CA 92648
I certify that in the performance of the activity or work for which this permit is issued, I small not
employ any person in any manner so as to become su6'ect to California Workers' Compensation
insurance requirements.
I authorize the City of Huntington beach to immediately and retroactively revoke the license or
permit issued under this declaration if I hire any empioyee(s) or become su6'ect to the provisions of
the laws requiring Workers' Compensation insurance.
ApplicanVCompany Name: �af'reA &kODK k A556CtA�2S
Address: ef
APP licant's Signature: Date: I�1'fl[0 1
Title:
Location Signed:
Telephone Num6er: �(q 53 6 IY$).
C:\Ri skMgmt\Cert-1 n s\WC-Wvr.D oc (Rev. 5/31 /00)
CITY OF HUNTINGTON BEACH
APPLICATION FOR INSURANCE REQUIREMENTS WAIVER OR MODIFICATION
I. Name/Title/Department of Requesting Staff Member Linda Daily/Public Workg
2. Date of Request 4/18/01
3. Name of Contractor/Permittee Darrel Cohoon & Associates
4. Description of work to be performed Sewer service charge calculations
5. Value of Contract $29, 500
6. Length of Contract Six (6) months
7. Type of Insurance Waiver or Modification Requested: Cancellation
clause wording
(a) Limits: 2, 000, 000 (b) Coverage GEneral Liability
8. Have you contacted Risk Management to determine if professional liability coverage is available through
SCOPE? N/A
9. Reason for Request for Waiver or Reduction of Limits Unable to comply with
City's cancellation clause wording requirement
10. Identify the risks to the City if this request for waiver or modifications granted None
Department Head Signature
(This section to be completed by Risk Manager)
Recommendation: Approve V1 D
Risk Manager's Signature/D
(This section to be completed by City Attorney)
Recommendation: Approve Deny
City Attorney's Signature/Date
Settlement Committee approval [is] [is not] required for this waiver. If Settlement Committee approval is required,
submit this form to City Attorney's Office to be placed on the agenda. Recommendation: Approve Deny
City.Council approval [is] [is not] required for this waiver. If City Council approval is required, attach this form to the
- RCA after consideration by the Settlement Committee. This insurance waiver [is not] on City Council agenda.
Reviewer's initials:
jmp/mis/inswaiver/3/14/00
*EQUEST FOR COUNCIL APION
MEETING DATE: March 19, 2001 DEPARTMENT ID NUMBER: PW 01-035
Analysis: On February 20, 2001, the City Council directed staff to proceed with
developing a sewer service charge. Tasks include structuring of a proposed rate,
programming by City's Information Technology Staff, and drafting of a proposed ordinance
by the City Attorney. In order to maintain the implementation schedule, these tasks must
be completed by early May.
In accordance with the established schedule, staff was directed to return to the City Council
with a professional services contract with Darrel Cohoon and Associates for services
relating to establishing the rate structure and preparing the reports needed to demonstrate
that the charge is reasonably related to the cost of the service.
In a preliminary report, Darrel Cohoon & Associates evaluated a monthly sewer service
charge as a method of funding improvements and maintenance for the sewer system.
Alternative rate structure methodologies and billing methods were included as part of the
effort. The preliminary report did not address specific information relating to cost of services
as advised by the City Attorney.
The scope of work included in this agreement includes calculating charges for each of the
identified customer categories. The final report will include the recommended charges and
document the methodology used in calculating them. In addition, Mr. Cohoon will develop
recommendations for updating charges in the future as advised by the City Attorney.
As a Sole proprietor, Mr. Cohoon is unable to secure Workers Compensation Insurance;
therefore, it is requested that the insurance requirement be waived.
Mr. Cohoon requests modification of the Hold Harmless contract clause by the addition of
the word "negligent" in front of "performance." Insurance companies will not write
professional liability insurance for the broad coverage included in the contract.
Darrel Cohoon & Associates was selected through a competitive process for preparation of
a preliminary report evaluating a monthly sewer service. This work will be an extension of
the work performed under the previous work authorization.
Environmental Status: Not applicable
Attachment(s):
1 Professional Services Agreement between the City of Huntington
Beach and Darrel Cohoon and Associates
RCA Author: L. Daily ext 5599
01-35 March 19 Daily (Darrel Cohoon-Sewer Fee).doc -2- 03/14/01 9:40 AM
RCA*ROUTING 9HEET
INITIATING DEPARTMENT:
Public Works
SUBJECT:
Approve Contract between Darrel Cohoon and Assoclates
to Develop Sewer Service Charge
COUNCIL MEETING DATE:
March 19, 2001
RCA. ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorne)
Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney)
Attached
Certificates of Insurance (Approved by the City Attorney)
Not Attached (Explain)
Financial Impact Statement (Unbudget, over $5,000)
Not Applicable
Bonds (If applicable)
Not Applicable
Staff Report (If applicable)
Not Applicable
Commission, Board or Committee Report (If applicable)
Not Applicable
Findings/Conditions for Approval and/or Denial
Not Applicable
EXPLANATION:. FO.... ....
R. MISSING ATTACHMENTS:,;
Subject to approval by Insurance Settlement Committee 3/20/01
RCA Author: L Daily x 5599