Loading...
HomeMy WebLinkAboutRED OAK CONSULTING - 2007-04-11 V CONTRACTS SUBMITT)* STP $ P11 3: 18 CITY CLERK'S OFFICE , y Z i i N" CH if G 0 To: JOAN FLYNN, City Clerk Name of Contractor: Red Oak Consulting Amendment #1 Purpose of Contract: For Example:Audit Services or Water Quality Testing Huntington Lake—Huntington Central Park WasteNVastewater In-Lieu and Cost Allocation Study Amount of Contract: $94,357.00 Copy of contract distributed to: The original insurance certificate/waiver distributed Initiating Dept. n to Risk Management E:1 Finance Dept. F-1 ORIGINAL bonds sent to Treasurer El Date: Na xten on City Attorney's Office co 7D7Y-TL_ K, 3 G:AttyMisc/Contract Forms/City Clerk Transmittal AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND RED OAK CONSULTING THIS AMENDMENT is made and entered into the�day o , 2007, by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City," and RED OAK CONSULTING, a New York corporation, hereinafter referred to as "Red Oak." WHEREAS, City and Red Oak are parties to that certain agreement, dated April 11, 2007, entitled"Professional Services Contract Between The City of Huntington Beach and Red Oak Consulting for a Water/Wastewater In-Lieu and Cost Allocation Study," which agreement shall hereinafter be referred to as the "Original Agreement," and City and Red Oak wish to amend the Original Agreement to provide for the performance of additional tasks by Red Oak, and to provide for additional compensation to be paid to Red Oak for the performance of such additional tasks. NOW, THEREFORE, it is agreed by City and Red Oak as follows: 1. ADDITIONAL WORK AND COMPENSATION The Original Agreement is hereby amended to incorporate the additional tasks and additional compensation as set forth in the proposal letter from Red Oak to City dated July 16, 2007, a copy of which is attached hereto as Attachment No. 1 and incorporated by this reference as though fully set forth herein. The total amount of compensation to be paid to Red Oak, including the additional compensation described herein, shall not exceed Ninety-four Thousand Three Hundred Fifty-seven Dollars ($94,357.00). 07-1188/13789 1 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their authorized officers on the date first above written. RED OAK CONSULTING, CITY OF HUNTINGTON BEACH, a New York corporation a municipal corporation of the State of California B : � Acting Director of u lic Works print name (Pursuant to HBMC§3.03.100) cle one)Chairman/Presiden ice President AND APPROVED AS TO FORM: By: e7 QIC t(14�-� _ CT1 r14�1�A City Attorney print name E� ITS: (circle one ecretary hief Financial Officer/Asst. Secretary-Treasure REVIEWED AND APPROVED: City Administrator (only for contracts$50,000.00 and over) 07-1188/13789 2 ATTACHMENT NO . 1 PATHWAYS TO LASTING SOLUTIONS SN'0 ING t.. Es.s'E;*.j+}��: 01 h'.x„�:. July 16, 2007 Howard Johnson Utilities Manager City of Huntington Beach Public Works Department, Utilities Division 19001 Huntington Street P.O. Box 190 Huntington Beach, CA 92648 Dear Mr. Johnson: On behalf of Red Oak Consulting (Red Oak), I am pleased to submit this proposal to complete a Sewer Rate Study for the City of Huntington Beach, (City). Our proposal includes a discussion of the services to be provided and a fee estimate. Sanjay Gaur will serve as the Project Manager on this project and Paul Matthews, a Senior Principal Consultant with Red Oak, will serve as the Project Director. Our team has over 35 years of collective experience and has conducted over 200 rate studies. The foundation of our analysis will be a customized, interactive eForecast model,which is an Excel-based financial 1 rate model. The model will be a key tool in evaluating City financial and rate options. BASICF SERVICES Schedule Red Oak understands that the City is interested in implementing the new sewer rate structure by January 1, 2008. To comply with Proposition 218, a final report would need to be completed by October. We will be able to meet this tight deadline assuming we are given notice to proceed by July 23, 2007 and we receive an electronic copy (PC version) of the Sewer Enterprise billing database by August 1, 2007. To conduct the requested Sewer Rate Study analysis, Red Oak will complete the following seven tasks. Task 1 —Project Orientation Workshop Red Oak will facilitate a project orientation workshop with City Staff to initiate the project. Priorio the project orientation workshop, Red Oak will provide the City with a preliminary data request list. We will also review and discuss financial and growth forecast assumptions as well as the City policies to be considered as part of the financial plan evaluation, including but not limited to, debt service coverage ratios and reserve • 725 South Figueroa Street Suite 1,540 • Los Angeles,CA 90017 • T (213)614-9002 • F (213)614-9003 • www.redoakeonsulting.com City of Huntington Beach July 11, 2007 Page 2 requirements. In addition, we will discuss what criterions we should use when evaluating various sewer rate structures (see Task 3). Finally,we will clarify roles, communication procedures,the project schedule, and due dates for deliverables. Task 2—5-Year Financial Plan Red Oak will develop an eForecast financial planning model for the City's Sewer Enterprise Fund for a five-year study period. The financial plan analysis will include the following elements: Revenue Requirements. A projection of operating expenses based on the utility's budget and a review of historical cost trends will be conducted in sufficient detail to: • Recognize types of expenses incurred by the system; • Project expenses for the study period; and • Recognize changes in certain costs consistent with changes in projected utility operations. Review of the Capital Improvement Charge. This exercise will provide the means for determining the most appropriate funding source such as cash reserves or debt financing. Bond Compliance Analysis. An analysis will be conducted to demonstrate that the covenants and financial requirements associated with any existing or proposed bond obligations and other debt instruments are complied with over the forecast period. Reserve Requirements. An analysis will be conducted to examine two reserve requirements that we typically recommend: • Operational and Maintenance. This is to satisfy yearly cash flow requirements. • CIP Reserve. This is the annual contribution for future refurbishment programs. 11 Revenue Analysis. Using the current discharge for sewer, Red Oak will calculate revenue at current rates for the five-year study period. Based on the above information, Red Oak will develop a five-year revenue program that will maintain the sewer system. We anticipate one meeting to confirm the revenue requirement with City staff members. This will ensure that all foreseeable costs are accounted for. Task 3—Cost of Service/Rate Design Analysis Once the five-year financial plan has been developed, Red Oak will develop a cost of service analysis which will be based on a rate structure that charges customers based on sewage flow. In addition,two additional alternative sewer rate design options will be developed. In total,there will be three rate design alternatives, including: Current Sewer Rate Structure. This rate structure will be based on the rate structure that is currently implemented at the City. PATHWAYS TO LASTING SOLUTIONS �3. City of Huntington Beach July 11, 2007 Page 3 Indoor Water Use Rate Structure. The foundation of this rate structure alternative is based on indoor water consumption. We will examine data on the fluctuation of winter and summer water use and determine an approximation methodology for indoor water use. 11 Meter Size Rate Structure.This rate structure will be based on the current water meter size. In order to evaluate each of these rate structures, it is recommended that the criteria be developed in advance as part of Task 1. Based on these criteria, Red Oak will assess and present the pros and cons of each rate methodology. Task 4 - Sensitivity Analysis/Rate Workshop Once the eForecast model has been developed to incorporate the five-year financial plan and rate design,we will conduct a sensitivity analysis to examine the outcome of various financial scenarios that may occur over the course of the next five years. In addition, we will conduct one workshop with the City staff to determine a sewer rate structure that is financially sustainable, legally justifiable and politically acceptable for the community of Huntington Beach. At this workshop, Red Oak will recommend a sewer rate structure for adoption by the City Council. Task 5-Prepare Draft Report We will prepare a draft report that encompasses the eForecast model and integrates our findings from the previous tasks. We will provide a detailed, yet easy-to-read report for City staff and policymakers. In the financial planning analysis section,we will explain the proposed revenue requirement and provide any applicable information to document how the proposed revenue requirement has accounted for probable risks. The report will include a comparative matrix that compares the sewer rates of three neighboring utility service providers with the City's current and proposed rates. Task 6—Finalize Report After City staff has reviewed the draft report, we will discuss any feedback and comments via up to three conference calls. These discussions will allow us to better understand and accurately incorporate City staff comments and concerns. The final report will include any pertinent corrections and clarifications to ensure full coverage and clear explanations. Task 7—Model Delivery and Training Following completion of Task 6, Red Oak will conduct a 4-hour formal training session to review and demonstrate the key functions of the eForecast model. The training will consist of reviewing methodologies used during the study and helping the City staff understand the financial planning and rate study process, model design and layout, how to adjust key variables that support the"what-if' scenario development features of the PATHWAYS TO LASTING SOLUTIONS City of Huntington Beach July 11, 2007 Page 4 model, and how to update the model with a new budget, CIP, and revenue information for the City's future use. At the completion of the training,we will provide the model in Microsoft Excel format to the City for its future use. Fee Estimate As requested, we have provided a schedule of rates and an estimate of the total cost(with subtotals by task) identified in the scope of work on the following page. Thank you for consideration of our team for this important study. Please contact Sanjay Gaur at(213) 327-1640 or by email sgaur@pirnie.com, if you have any questions regarding this proposal. Very truly yours, RED OAK CONSULTING A Division of Malcolm Pirnie, Inc. R Richard D. Giardina Sanjay Gaur Vice President Principal Consultant PATHWAYS TO LASTING SOLUTIONS , ;, . PATHWAYS TO LASTING SOLUTIONS So r, r,r tccaLsa s rRrate ESTIMATED FEE Our not-to-exceed fee based on the outlined scope of services is $49,703. This amount includes both fees and expenses. Labor Hours by Staff Type Administrative Task Description Project Director Project Manager Financial Analyst Support Total Hours Labor Direct Costs Total Paul Matthews Sanjay Gaur Mark Hildebrand $ 225 $ 200 $ 125 $ 89 Task 1—Project Orientation Workshop 1 16 16 2 35 $ 5,603 $ 536 $ 6,139 Task 2—5-Year Financial Plan 1 20 30 - 51 7,975 151 8,126 Task 3—Cost of Service/Rate Design Analysis 4 30 80 114 16,900 - 16,900 Task 4-Sensitivity Analysis/Rate Workshop 1 10 15 26 4,100 536 4,636 Task 5-Prepare Draft Report 4 16 30 50 7,850 - 7,850 Task 6-Review,Revise&Present Report 1 4 8 - 13 2,025 - 2,025 Task 7—Model Delivery and Training 11 12 2 25 3,878 151 4,029 TOTAL 12 107 191 4 314 $ 48,331 $ 1,372 $ 49,703 This fee proposal is a firm offer for a 60-day period NUMBER OF MEETINGS This scope of work includes four(4) on-site meetings: One (1)Project Orientation One (1)Revenue Requirement Workshop One (1)Rate Workshop One (1) eForecast training workshop • 725 South Figueroa Street Suite 1540 + Los Augeles, CA 90017 • T (213)614-9002• N (213)614-9003 www.redoake.onsultin,.coni DATE(MM1DD/YYYY) I b QC0,�3DTu CERTIFICATE OF LIABILITY INSURANCE 03/22/2007 :ODUCER (908)654-0300 FAX (908)6S4-0332 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION j lapin-Lieb & Co. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE i ?0� Sheffield Street HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, i iuite 104 fi 1 i 4ountainside, N] 07092-2314 p I INSURERS AFFORDING COVERAGE NAIC# ;C ,� SURED Mal col m P.i rni a Inc. 0 INSURER A: American Intl Specialty Lines 26883 104 Corporate Park D r i ve INSURER B: P. 0. Box 751 INSURERC: f White Plains, NY 10602-0751 INSURERD: INSURER E: i :OVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS 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.AGGREGATE LIMITS SHOWN MAY HAVESEEN REDUCED BY PAID CLAIMS. SR DD' TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITSTR SR s DATE IMMtDDIM GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ CLAIMS MADE F__j OCCUR MED EXP(Any one person) $ i 1 PERSONAL 8 ADV INJURY $ GENERAL AGGREGATE $ GEWL AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ POLICY PRO- LOC JECT El AUTOMOBILE LIABILITY i COMBINED SINGLE LIMB E ANY AUTO (Ea accident) ALL OWNED AUTOS P ATFO BODILY INJURYSCHEDULED AUTOS (Per person) HIRED AUTOS B H i A o7vo BODILY INJURY $ NON-OWNED AUTOS � PROPERTY DAMAGE $ z (Per accident) 3 GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ 11 ANY AUTO OTHER THAN EA ACC $ I AUTO ONLY: AGG $ [I EXCESSAIMBRELLA LIABILITY EACH OCCURRENCE $ 1 OCCUR CLAIMS MADE AGGREGATE $ $ DEDUCTIBLE $ s RETENTION $ ATU $ F WORKERS COMPENSATION AND WC ST..TT O R 1# EMPLOYERS'LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? E.L.DISEASE-EA EMPLOYE $ N yes,describe under SPECIAL PROVISIONS-below E.L.DISEASE-POLICY LIMIT 1$ rot. Liab/Contractors 2190384 02/01/2007 02/01/2008 $10.000,000 per Claim A Pollution Liab. Ins. $10,000,000 Aggregate Including Claims Expense ;• DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS 2E: M504401, in Lieu & Cost Allocation. i s (Operations of the Named Insured, including above) 'Except 10 days premium lion-payment. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE.DESQRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30= DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, i City of Huntington $each BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. Huntington Beach, CA 92648 AUTHORIZED REPRESENTATIVE Richard Ra olla Exec. V.P.y ACORD 25(2001108) ©ACORD CORPORATION 1988 CITY OF HUNTINGTON BEACH Professional Service Contracts Purchasing Certification Amendment # 1 Date: September 11, 2007 1. Department: Public Works 2. Requested By: Howard Johnson SEP 1 4 2007 3. Name of Consultant: Red Oak Consulting City of Hontin9ton Bwach City Attorney°,s®fFico 4. Amount of Original/Prior Contract: $44,654 5. Additional Compensation Requested: $49,703 6. Reason for Contract Amendment: The consultant's scope of work has been expanded to include a sewer service rate study. 7. Are sufficient funds available to fund this contract? Yes ® No ❑ 8. Company number and object code where funds are budgeted: 50685801.69365 rtment Head Sig ature RI HA D AM DRIL, Mana er Central Services Division CONTRACTS SUBMITTAL TO CITY CLERK'S OFFICE To: JOAN FLYNN, City Clerk Name of Contractor: Red Oak Consulting Purpose of Contract: For Example:Audit Services or Water Quality Testing Huntington Lake—Huntington Central Park For cost allocation study of the water and sewer enterprise funds Amount of Contract: $44,654.00 Copy of contract distributed to: The original insurance certificate/waiver distributed Initiating Dept. to Risk Management [� Finance Dept. ED ORIGINAL bonds sent to Treasurer ❑ Date: 7( l Name/Extension City Attorney's Office z e� G:AttyMisc/Contract Forms/City Clerk Transmittal PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND RED OAK CONSULTING FOR A COST ALLOCATION STUDY OF THE WATER AND SEWER ENTERPRISE FUNDS Table of Contents 1 Scope of Services.....................................................................................................1 2 City Staff Assistance................................................................................................2 3 Term; Time of Performance.....................................................................................2 4 Compensation ..........................................................................................................2 5 Extra Work..........................................................:....................................................2 6 Method of Payment..................................................................................................3 7 Disposition of Plans, Estimates and Other Documents ...........................................3 8 Hold Harmless .........................................................................................................3 9 Professional Liability Insurance.............................................................................4 10 Certificate of Insurance............................................................................................5 11 Independent Contractor............................................................................................6 12 Termination of Agreement.......................................................................................6 13 Assignment and Delegation......................................................................................6 14 Copyrights/Patents...................................................................................................7 15 City Employees and Officials..................................................................................7 16 Notices.........................................................................................7 17 Consent ....................................................................................................................8 18 Modification.............................................................................................................8 19 Section Headings .....................................................................................................8 20 Interpretation of this Agreement..............................................................................8 21 Duplicate Original....................................................................................................9 22 Immigration...............................................................................................................9 23 Legal Services Subcontracting Prohibited................................................................9 24 Attorney's Fees..........................................................................................................10 25 Survival.....................................................................................................................10 26 Governing Law.........................................................................................................10 27 Entirety......................................................................................................................10 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND RED OAK CONSULTING FOR A WATER/WASTEWATER IN-LIEU AND COST ALLOCATION STUDY THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY, and RED OAK CONSULTING, a New York State corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to perform a water/wastewater in-lieu and cost allocation study; 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 these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Sanjay Gaur who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 07-866/8713 1 3. TERM, 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 by CITY (the 0400 Pig yS IrW~ "Commencement Date"). This Agreement shall expire oi�°'"' �" �'yz unless sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than .2o a P,4,Y S from the Commencement 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 Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Forty Four Thousand Six Hundred Fifty Four Dollars ($44,654.00). 5. 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. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 07-866/8713 2 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit, but CITY will indemnify CONSULTANT for liability arising out of CITY's use beyond the intended purpose of the materials. CONSULTANT shall be entitled to retain copies of material for its file. 8. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) 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 misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do rz)t act as limitation upon the amount of indemnif:Zation to be provided by CONSULTANT. 07-866/8713 3 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide' coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not contain a self-insured retention, "deductible" or any other similar form of limitation on the required coverage except with the express written consent of CITY. 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 shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. 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. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insuranc-- coverage as required by this Agreement; the certificat.: shall: A. provide the name and policy number of each carrier and policy; 07-866/8713 4 B. state that the policy is currently in force; and C. promise that such policy 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. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely, manner,the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and 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 PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good a:.d workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without 07-866/8713 5 cause, and whether or not the 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 CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. 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. 15. 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. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delive.32 to CONSULTANT's agent (as designated in Section I hereinabove; or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage 07-866/8713 6 prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: TO CITY: TO CONSULTANT: City of Huntington Beach Red Oak Consulting ATTN: Director of Public Works Attn: Sanjay Gaur 2000 Main Street 727 South Figueroa Street, Suite 1540 Huntington Beach, CA 92648 Los Angeles, CA 90017 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and 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. 07-866/8713 7 20. 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. 21. 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 duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United Stages and shall, particular, comply with the provisions of the United States Code regarding employment verification. 07-866/8713 8 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor 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. 24. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non-prevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal ccunsel prior to executing this .'agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or 07-866/8713 9 warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on �� 20r)7. RED OAK CONSULTING, INC., a New York corporati n CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: ��_ �t Joe L ria, Vice President Director of PubliJ4orks AND (Pursuant To HBMC§3.03.100) By: , 4.7� Rick Giardina, Secretary AP OVED AS TO FORM: Me City Attorn 6?' A""u 07-866/8713 10 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) Consultant will perform a cost allocation study of the water and sewer enterprise funds as noted in the contract title. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: 1. Please see "Scope of Services"beginning is section 2 of the attached proposal C. CITY'S DUTIES AND RESPONSIBILITIES: 1. Attend meetings and provide financial and operational information as required 2. Ken Dills (ext. 5055)will act as Project Manager. D. WORK PROGRAM/PROJECT SCHEDULE: Please see "Scope of Services"beginning is section 2 of the attached proposal jmp/contracts group/exA/4/5/07 EXHIBIT "B" Payment Schedule (Alternative#1) 1. Charges for time during travel are normally not reimbursable and will only be paid if such time is actually used in performing services for CITY or as otherwise arranged with CITY. 2. CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. SCE /02/&47' 3. 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. 4. 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 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 and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 5. Any billings for extra work or additional services authorized in advance and in writing 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. jmp/contracts group/exB-1/4/2/07 1 EXHIBIT B Alternative#1 r) 0 -TG 0 c) 6� C� RE w' e A 01VIS1oN OF MALCOLM PIRNIF March 19, 2007 Mr. Howard Johnson Utility Manager- Department of Public Works City of Huntington Beach Utilities Operations 19001 Huntington Street Huntington Beach, CA 92648 Dear Mr.Johnson: Red Oak Consulting, a division of Malcolm Pirnie, is pleased to submit a proposal to provide professional consulting services for the City of Huntington Beach's Water/Wastewater Utility In Lieu and Cost Allocation Study. Please find enclosed a price proposal that breaks down staffing commitments, projected level of work by task, and billing rates. Red Oak has put together a well qualified team utilizing local staff and staff from other offices with the required experience to address the City's needs. This team will have the resources to meet the City's requirements. If needed, Red Oak is available to discuss the City's needs and able to adjust the scope and budget appropriately. Please call me with any questions at my office number (303)316-6505 or call Sanjay Gaur at (213)327- 1640. We are committed to helping the City of Huntington Beach complete this project. Sincerely, L� Rick Giardina Sanjay Gaur Vice President Associate Huntington Beach In-Lieu and Cost Allocation Study Estimated Budget Labor Hours by Staff Type Principal Consultant I Principal (Project i Senior Financial Administrative Task Description Vice President Consultant 11 Manager) Consultant Analyst Support Total Hours Labor' Direct Costs Total Todd Mark Rick Giardina Steve Hayashi Sanjay Gaur Anderson Hildebrand 00 i Task 1-Kickoff Meeting 2 - 8 8 16 2 36 $ 6,638 $ 545 $ 6,183 Task 2-Reviewing and Updating the Cost 12 24 36 5,400 5,400 Allocation Plan Task 3-Examination of Operational Practices 4 2 10 16 32 5,000 5,000 under the Water and Sewer Enterprise Fund Task 4-Identification of Services and Development of Cost Estimates 4 2 12 18 2,640 2,640 Task 5-Development of Prop.218 Strategy 2 8 24 34 6,100 5,100 Excel Model Task 6-Workshops with Staff and City Council 20 28 48 7,500 298 7,798 Task 7-Report Development 2 6 4 16 28 4,380 - 4,380 [Task 8-Final Presentation to City Council 14 16 2 32 4,978 325 5,303 TOTAL 6 4 74 24 152 4 264 $ 40,636 $ 1,168 $ 41,804 This fee proposal is a firm offer for a 60-day period. Page 1 of 1 LJ00 C! City of Huntington Beach Water/Wastewater Utility'ln lieu and Cost Allocation Study ' HUNTINGTON BEACH PROJECT UNDERSTANDING SCOPE OF SERVICES The City of Huntington Beach (City) is requesting Red Oak Consulting proposes to develop a plan for proposals to determine the appropriate amount of the City that will determine the level of transfer from transfer from the City's Sewer and Water Enterprise the City's Enterprise Fund to the General Fund in Fund to the City's General Fund. The California accordance with Proposition 218. This plan will include Supreme Court has recently ruled that water and sewer three major aspects: services are "property-related goods." This has caused 1. To review and, if needed, update the City's concern that prior rationality of transfers between current Cost Allocation Plan.This step will include municipal enterprise and general funds may not meet reviewing methodology that is used to allocate central the requirements of Proposition 218. The objective of service costs to the operating departments. For this study is to: instance,we typically recommend that centralized IT ■ Review and, if needed, update the City's current Cost Services costs be allocated according to the number Allocation Plan. of computers in each operating department. However, each allocation methodology will need to be reviewed ■ Identify areas where the City is providing services to to ensure a "Rational Nexus" is determined. the Water and Sewer Enterprise Fund that may not be captured by the current Cost Allocation Plan, and 2• We will review the operational practices of the conduct associated cost-of-service calculations. City's Water and Sewer Enterprises and help identify ■ Develop a user-friendly Excel model that can map any additional central services that directly benefit the out different levels of transfer amounts. City's enterprise activities. The Red Oak Consulting team is poised to meet these 3. We will conduct cost-of-service calculations for objectives given our thorough understanding of cost each additional identified service. We will ensure that allocation plans, Proposition 218, and operational no double-counting of service is conducted between management of water and sewer utilities. this step and the Cost Allocation Plan, and that all identified services are represented. We have closely reviewed the City's RFP and taken into account the "constraints, problems, and issues"that To accomplish this task, we will develop an Excel model may arise during the performance of this contract in with which we or the City can easily represent differ- the development of our proposed scope of services. ent levels of transfer based on various interpretations The most significant issue we anticipate at this point is of Proposition 218 and identified activities. Once the one not noted explicitly in the City's RFP; namely, the model has been developed, we will conduct two work- need for the City's in-lieu transfers and cost allocations shops (one with staff and another with the City Coun- to be consistent with Proposition 218. For this reason, cil)to develop consensus on the appropriate level of we have incorporated Proposition 218 considerations transfer of centralized City costs to its Water and Sewer directly into our proposed scope of services and Enterprise Funds. consider Proposition 218 compliance to be an integral Task 1 - Kickoff Meeting part of our written deliverables and presentations for this project. It is anticipated that core members of the Red Oak project team will meet with City Staff for one (1) kickoff As noted in Section 1,we believe that our meeting at City offices to discuss the City's concerns comprehensive approach will provide more long-term and needs and confirm the scope, schedule,and ap- value to the City than a typical cost allocation study. proach outlined in this proposal. During this meeting, REWAK .. . .R, City of • • Beach I, Il4 Water/Wastewater Utility In Lieu • Cost AllocationStudy we will also discuss the Proposition 218 environment will accomplish this through three methods: given recent legal developments,and determine the Review of key documents to complement best approach to balance these issues when identifying our review of the current Cost Allocation and justifying the appropriate transfers between the Plan and understand water and sewer City's Enterprise Funds and the General Fund. After the operations,such as the City's Water and Sewer meeting, introductions could be made with any other Enterprise budgets and strategic plans. key staff that we will be working with throughout the - Review of the City's organizational charts course of the project. In addition, we will identify our and/or work unit descriptions, and relevant documentation and data requirements and confirm our suggested project timeline in coordination Interviews with selected Sewer and Water managers. with the City to ensure that the project's milestones are met. Previously unidentified or unallocated services may Task 1 Deliverables: Project schedule; minutes of the include one or more of the following: meeting; data request ■ Public outreach activities conducted by central City Staff that incorporate water, sewer,or environmental Task 1 Meeting:One kickoff meeting information. Task 2- Reviewing and Updating the Cost ■ Legal services provided by central City legal staff Allocation Plan related to Sewer or Water Enterprise activities. We will review the City's current Cost Allocation Plan ■ Inspection or other field activities performed by and compare the "allocation units" (e.g.,full-time other City groups for Water or Sewer Enterprise equivalents,or FTEs;agenda items; purchase orders; programs- for example, some municipalities conduct building square footage occupied) with industry stan- stormwater or hazardous materials compliance dards. We will review this methodology with key central inspections by their Fire Department to support a service department staff to determine the activities and water or wastewater quality-driven program. tasks performed by each department and discuss which "allocation units"serve as the most appropriate bases ■ Human resources (e.g., hiring,training), billing/ for allocation of central service department expenses. financial, risk management, procurement, and/or We are anticipating that the Cost Allocation Plan will other centralized services provided to the operating need to be updated. We will develop a user-friendly departments. Excel cost allocation model that can map out differ- ent "allocation units" for each Central Service depart- Task 3 Deliverable: Memo that highlights services that ment. Once the model has been created we will conduct the City is providing to the Water and Sewer Enterprise sensitivity analyses on the "allocation units" to develop Fund that are not already captured in the City's existing a Cost Allocation Plan that meets the "Rational Nexus" Cost Allocation Plan. criterion and meets the objectives of the City. Task 3 Meetings: Up to three (3)telephone interviews Task 2 Deliverables: Memo summarizing our findings Task 4- Identification of Services and and recommendations on the Cost Allocation Plan; Cost Allocation Model in electronic format Development of Cost Estimates Task 2 Meetings: Up to three (3) conference calls to Based on the identified services in Task 3, we will de- discuss the Cost Allocation Plan. velop cost estimates for the identified services.There are two key components of this task:the first is to use Task 3- Examination of Operational Practices fully burdened hourly rates,which include salary, ben- under the Water and Sewer Enterprise Fund efit, and indirect and direct overhead costs. The second is to ensure that the identified services are not being We will work with the City to identify any centralized "double-counted," that is, not already accounted for "City" activities currently being provided that benefit under the City's current Cost Allocation Plan. the City's Water and Sewer Enterprise activities but are not yet captured in the current Cost Allocation Plan. We [\EWAK City of • • • �/, Water/Wastewater Utility In Lieu • • • • • Task 4 Deliverable: Memo that discusses the assump- Task 8- Final Presentation to City Council tions associated with the calculation of service costs We will present our final results at one City Council and the results of those calculations meeting where we will be able to work with City Staff to Task 4 Meetings: Up to three (3)conference calls answer any Council questions. Task 8 Deliverables: None Task 5- Development of Proposition 218 Strategy Excel Model Task 8 Meeting:One City Council Meeting where we Based on the information developed in Tasks 1-4, we will present the final 218 Strategic Plan, which will recom- develop a user-friendly Excel model that can be used to mend the level of transfer between the Enterprise Fund map out different transfer scenarios. to the General Fund. Project Schedule Task 5 Deliverable: Proposition 218 Strategy Excel Model A Project Schedule follows this section. This Schedule anticipates that we will have a signed contract by March Task 5 Meeting: None 31st, 2007, and will have a Kickoff Meeting directly Task 6- Workshops with Staff and City Council following the contract signing. We can work with the City to adjust the schedule to best meet the City's We anticipate two workshops with the City, one with needs. the Public Works Commission and another with the City Council. The foundation of these workshops will be the Proposition 218 Strategy Excel Model (Task 5), which will examine different transfer scenarios. Task 6 Deliverable: Memo that summarizes the results from the two workshops Task 6 Meetings: Two workshops, one with City Staff and the second with the City Council Task 7- Report Development We will develop a draft report (15 copies) based on all tasks to date. We anticipate two rounds of review and comment by City Staff. Based on comments,we will produce a Final Report.We will provide the City with 50 copies of the Final Report. Task 7 Deliverable: Draft version and final version of the Proposition 218 Strategic Plan which will recom- mend a level of transfer between the Enterprise Fund to the General Fund. Task 7 Meeting: None 1 • • ••. CONSULTING 2007 Task Mar. April May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 1. Kickoff Meeting 2. Reviewing and Updating the Cost Allocation Plan 3. Examination of Operational Practices under the Water and Sewer Enterprise Fund 4. Identification of Services and Development of Cost Estimates 5. Development of Prop. 218 Strategy Excel Model 6. Workshops with Staff and City Council 7. Report Development 8. Final Presentation to City Council L� Mr. Harvey R. Gobas, PE Mr. Brian Jewitt PSOMAS Muni Financial 3187 Red Hill Avenue, Suite 250 27368 Via Industria, Suite 110 Costa Mesa, CA 92626 Temecula, CA 92590 Mr. Tom Gould Ms. Joan Cox HDR Engineering Harris &Associates 500 108th Avenue Northeast, Suite 1200 34 Executive Park, Suite 150 Bellevue, WA 98004 Irvine, CA 92614 Mr. Bob Sullivan Mr. Marty Nohe Maximus Springsted 11419 Sunset Hills Road 28137 Espinoza Reston, VA 20190 Mission Viejo, CA 92692 V Mr. Robert Warren Malcolm Pirme 1525 Faraday Avenue, Suite 290 Carlsbad, CA 92008 CITY OF HUNTINGTON BEACH Professional Service Contracts t � Purchasing Certification 1. Date: April 2, 2007 2. Department: Public Works 3. Requested by: Howard Johnson 4. Name of consultant: Red Oak Consulting 5. Attach the written statement of the specification, conditions and other requirements for the requested services that was provided to solicited consultants in your answer to 11 of this form. RFP Attached 6r-&� E /Q/7' of 6. Amount of the contract: $44,654.00 7. Are sufficient funds available to fund this contract?' ® Yes ❑ No 8. Is this contract generally described on the list of professional service contracts approved by the City Council'? ® Yes ❑ No 9. Company number and object code where funds are budgeted: 50685801.69365 10. Is this contract less than $50,000? ® Yes ❑ No 11. Does this contract fall within $50,000 and $100,000? ❑ Yes ® No 12. Is this contract over$100,000? ❑ Yes ® No (Note: Contracts requiring City Council Approval need to be signed by the Mayor and City Clerk. Make sure the appropriate signature page is attached to contract.) 13. Were formal written proposals requested from at least three available qualified consultants? ® Yes ❑ No 14. Attach list of7nsultants from whom proposals were requested (including a contact telephone number). Attached 15. Attach proposed scope of work. Attached to contract as Exhibit A 16. Attach proposed payment schedule. Attached to contract as Exhibit B . r epartment Head Signature RI ARD MADRIL, Man ee� Purchasing/Central Services I. If the answer to this question is"No,"the contract will require approval from the City Council. Professional Services Contracts Included in FY 2006107 Budget Department Description Amount Business Unit Public Works Special reports 10,000 10085101 Public information;technical assistance 100,000 10085102 Minor design or specialty services; inspection 30,000 10085201 Development processing; CFD assistance 330,000 10085251 Development processing 100,000 10085301 Continue ADA transition services 75,000 10085401 Building Reports&Specifications 25,000 10085402 Underwater Pier inspection 40,000 10085402 Building Inventory for CMMS program 200,000 10085402 Building Reports&Specifications 15,000 10085403 Pavement management updates 25,000 10085412 Certified Arborist reports 5,000 10085621 Design, project, management, inspection, &testing for CIP 95,000 20185201 Design, project management, inspection,&testing for CIP 30,000 20190007 Design; capital project assistance 250,000 20685201 Design; capital project assistance 980,000 20690001 Design; capital project assistance 250,000 20690007 Street reports;capital project assistance 100,000 20785201 Design, project, management, inspection, &testing for CIP 100,000 20785412 Design, project, management, inspection,&testing for CIP 250,000 20790001 Design, project, management, inspection, &testing for CIP 80,000 20790007 Design, project, management, inspection,&testing for CIP 1,500,000 20790008 Design, project, management, inspection,&testing for CIP 315,000 20987030 Design, project, management, inspection,&testing for CIP 100,000 21089008 Street reports; capital project assistance 100,000 21385201 Design, project, management, inspection, &testing for CIP 500,000 21390002 Design, project, management, inspection, &testing for CIP 2,600,000 30585201 Design, project, management, inspection,&testing for CIP 500,000 31485201 Water Standards Update 25,000 50685201 Hydraulic Modeling 75,000 50685201 Records Update 50,000 50685201 Cathodic Protection Monitoring -_ - 50,000 50685201 Consultant services for water rate/prop 218 study 250,000 50685801- Annual water quality testing contract 65,000- 50685802 Design, project, management, inspection, &testing for CIP 50,000 50785201 Design, project, management, inspection, &testing for CIP 75,000 50791011 Design, project, management, inspection,&testing for CIP 950,000 50791017 Design, project, management, inspection,&testing for CIP 1,020,000 51185201 Design, project, management, inspection,&testing for CIP 80,000 51189001 Design, project, management, inspection,&testing for CIP 555,000 51189002 Design, project, management, inspection,&testing for CIP 50,000 51189003 Design, project, management, inspection, &testing for CIP 50,000 87390009 Design, project, management, inspection, &testing for CIP 840,000 89288005 Total Professional Services $12,890,000 DATE.(MM/DD/YYYY) C_ -R ,M CERTIFICATE OF LIABILITY INSURANCE 03/22/2007 IODUCER (908)654-0300 FAX (908)654-0332 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION la in-Lieb & Co. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR !66 Sheffield Street ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. >uite 104 Mountainside, NJ 07092-2314 ^�f ( {` a ; ;� INSURERS AFFORDING COVERAGE NAIC# sURED Malcolm Pi rni a Inc. r INSURER A: American Int'1 Specialty Lines 26883 104 Corporate Park Drive� INSURER B: P. 0. Box 7 S 1 INSURERC: White Plains, NY 10602-0751 INSURERD: INSURER E: ;OVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSUREDNAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY.CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS 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.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. SR IkDD*L TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATIONDATE(MM/DDIYYI LIMITS GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ CLAIMS MADE F OCCUR MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GENERAL AGGREGATE $ GENT AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ POLICY PRO LOC JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO {Ea accident) ALL OWNED AUTOS B ODIILYINJURY SCHEDULED AUTOS VEIF�EVED TO FOAM ( So ) $ HIRED AUTOS MC BODILY INJURY $ . I NON OWNED AUTOS TH Ole accident)s/O7 PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR El CLAIMS MADE AGGREGATE $ DEDUCTIBLE g RETENTION $ $ WC TH- WORKERS COMPENSATION AND OR I IMIT FR EMPLOYERS'LIABILITY " ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? E.L.DISEASE-EA EMPLOYE $ 9 yes,describe under I i SPECIAL PROVISIONS below I E.L.DISEASE-POLICY LIMIT $ ro Liab/Contractors 2190384 02/01/2007 02/01/2008 $10,000,000 per Claim A ollution Liab. Ins. $10,000,000 Aggregate Including Claims Expense DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS - 2E: M504401, in Lieu & Cost Allocation. (Operations of the Named Insured, including above) *Except 10 days premium non-payment. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30" DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, City of Huntington Beach BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. Huntington Beach, CA 92648 AUTHORIZED REPRESENTATIVE Richard Rampolla Exec. V.P.i /llw- ACORD 25 42001108) ©ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s),authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend,extend or alter the coverage afforded by the policies listed thereon. i I I ACORD 25(2001108) City of Huntington Beach Certificate issued to City of Huntington Beach 03/22/2007 Slapin-Lieb & Co. 03/22/Z007 Sanjay Gaur Malcolm Pirnie, Inc. 725 South Figueroa Street Suite 1540 Los Angeles, CA 90017 RE: Certificate of Insurance Malcolm Pirnie, Inc. Dear Mr. Gaur: Enclosed please find General and Professional Liability Certificates of Insurance evidencing coverage as of 02/01/07 which we trust should suffice your needs. If you have any questions or concerns, please feel free to call me at Ext. 124. Sincerely, Richard P. Rampolla, CPIA Executive Vice President RRR/sh Encl . CC: Anne Marie Conigliaro, MPI/WHI Chris Newman, MPI/WHI A XjW,TM CERTIFICATE OF LIABILITY INSURANCE 03/22/2007) RODUCER (908)654-0300 FAX (908)654-0332 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ilapin-Lieb & Co. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 200 Sheffield Street ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Suite 104 Mountainside, NJ 07092-2314 INSURERS AFFORDING COVERAGE NAIC# 1SURED Malcolm Pirnie, Inc. INSURERA: National Fire Ins. of Hartford 20478 104 Corporate Park Drive INSURERB: Continental Casualty Company 20443 P. 0. BOX 7 S 1 INSURER C: White Plains, NY 10602-0751 INSURERD: INSURER E: ;OVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. 4SR 1=1 Ew TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS GENERAL LIABILITY 02/01/2007 02/01/2008 EACH OCCURRENCE $ 1,000,000. X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ 1,000,0001 CLAIMS MADE FX OCCUR 2076336602 SEE ATTACHED MED EXP(Any one person) $ 10,0001 A FOR COMMENTS PERSONAL&ADV INJURY $ 11000,000 IF ANY GENERAL AGGREGATE $ 2,000,000 GENT AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ 2,000,000 POLICY X PROECT X LOC J AUTOMOBILE LIABILITY 02/01/2007 02/01/2008 COMBINED SINGLE LIMIT $ X ANY AUTO 2082790277 (Ea accident) 1,000,00 ALL OWNED AUTOS BODILY INJURY A SCHEDULED AUTOS (Per person) $ X HIRED AUTOS SEE ATTACHED BODILY INJURY X NON-OWNED AUTOS FOR COMMENTS (Per accident) - $ IF ANY PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS/UMBRELLA LIABILITY - 02/01/2007 02/01/2008 EACH OCCURRENCE $ 20,000,000 X OCCUR CLAIMS MADE 2082790280 AGGREGATE $ 20,000,000 B SEE ATTACHED $ DEDUCTIBLE FOR COMMENTS $ RETENTION $ IF ANY $ WORKERS COMPENSATION AND WCBTATT OTH- EMPLOYERS'LIABILITY E.L.EACH ACCIDENT $ ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICERIMEMBER EXCLUDED? E.L.DISEASE-EA EMPLOYE $ If yes,describe under SPECIAL PROVISIONS below E.L.DISEASE-POLICY LIMIT $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS RE: M504401, in Lieu & Cost Allocation. j . . . .See attached for details. . . . . `-Except 10 days premium non-payment. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30* DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, City of Huntington Beach BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. Huntington Beach, CA 92648 AUTHORIZED REPRESENTATIVE Richard Rampolla Exec. V.P. -- ACORD 25(2001108) �@ACORD CORPORATION 1988 City of Huntington Beach Zertificate issued to City of Huntington Beach 03/22/2007 Slapin-Lieb & Co. Endorsements or Modifications as Applicable: General Liability (CG 0001 10/01): 1/A, 2, 3, 4, 5, 6 Automobile (CA 0001 03/06) : 1/B, 3, 4, 5, 6 Excess. Liability: 1/C, 2, 3, 5, 6 OPERATIONS OF THE NAMED INSURED ,INCLUDING M504401, IN LIEU & COST ALLOCATION. 1/A: If required by written contract or agreement, the City of Huntington Beach is included as additional insured, but only for work performed by the Insured, per G-140331-A (01/01) (copy attached). 1/B: If required by written contract or agreement, the City of Huntington Beach is included as additional insured, per CA 20 48 (02/99) (copy attached) . 1/C: If required by written contract or agreement, the City of Huntington Beach is included as additional insured, per G-18669-A (10/92) (copy attached) . 2: Excludes Professional Liability 3. If required by written contract or agreement, includes Waiver of Subrogation. 4. If required by written contract or agreement, this Insurance is primary to the extent coverage is .provided by the polity, to the coverage of the Certificate Holder as respects work performed for the Certificate Holder by the Insured. 5. If required by written contract or agreement, includes Contractual Liability Insurance to the extent coverage is provided by the policy. 6. If required by written contract or agreement, includes Severability of Interest. G-140331-A CNAPOLICY NUMBER: 2076336602 (Ed. 01/01) IMPORTANT: THIS ENDORSEMENT CONTAINS DUTIES THAT APPLY TO THE ADDITIONAL INSURED IN THE EVENT OF OCCURRENCE, OFFENSE, CLAIM OR SUIT. SEE PARAGRAPH C.1. OF THIS ENDORSEMENT FOR THESE DUTIES. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTOR'S SCHEDULED AND BLANKET ADDITIONAL INSURED ENDORSEMENT WITH PRODUCTS-COMPLETED OPERATIONS COVERAGE This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART 5 SCHEDULE Name of Person or Organization: Designated Project: AS REQUIRED BY WRITTEN CONTRACT OR AGREEMENT (Coverage under this endorsement is not affected by an entry or lack of entry in the Schedule above.) A. WHO IS AN INSURED (Section II) is amended to 3. The coverage provided to the additional insured include as an insured any person or organization, by this endorsement and paragraph f. of the including any person or organization shown in the definition of "insured contract" under schedule above, (called additional insured) whom DEFINITIONS (Section V) do not apply to you are required to add as an additional insured on "bodily injury" or "property damage" arising out this policy under a written contract or written of the "products-completed operations hazard" agreement; but the written contract or written unless required by the written contract or agreement must be: written agreement. 1. Currently in effect or becoming effective during 4. The insurance provided to the additional the term of this policy; and insured does not apply to "bodily injury," 2. Executed prior to the "bodily ry in'u "property " pp ro "property damage," or"personal and advertising '" injury" arising out of an architect's, engineer's, damage," or personal and advertising injury". or surveyor's rendering of or failure to render B. The insurance provided to the additional insured is any professional services including: limited as follows: a. The preparing, approving, or failing to 1. That person or organization is an additional prepare or approve maps, shop drawings, insured solely for liability due to your negligence opinions, reports, surveys, field orders, specifically resulting from "your work" for the change orders or drawings and additional insured which is the subject of the specifications; and written contract or written agreement. No b. Supervisory, or inspection activities coverage applies to liability resulting from the performed as part of any related sole negligence of the additional insured. architectural or engineering activities. 2. The Limits of insurance applicable to the C. As respects the coverage provided under this additional insured are those specified in the endorsement, SECTION IV — COMMERCIAL written contract or written agreement or in the GENERAL LIABILITY CONDITIONS are amended Declarations of this policy, whichever is less. G NERA: These Limits of Insurance are inclusive of, and as not in addition to,the Limits of Insurance shown in the Declarations. G-140331-A Page 1 of 2 rF,i niiniN G-140331-A CN! A (Ed.01/C 1) 1 The following is added to the Duties In The f. We have no duty to defend or indemnify an Event of Occurrence, Offense, Claim or Suit additional insured under this endorsement Condition: until we receive written notice of a claim or e. An additional ' insured under this "suit"from the additional insured. endorsement will as soon as practicable: 2. Paragraph 4.b, of the Other Insurance (1) Give written notice of an occurrence or Condition is deleted and replaced with the an offense to us which may result in a following: claim or"suit"under this insurance; 4. Other Insurance (2) Tender the defense and indemnity of b. Excess Insurance any claim,or "suit" to any other insurer This insurance is excess over any other which also has insurance for a loss we insurance naming the additional cover under this Coverage Part;and insured as an insured whether primary, (3) Agree to make available any other excess, contingent or on any other insurance which the additional insured basis unless a written contract_ or has for a loss we cover under this written agreement specifically requires Coverage Part. that this insurance be either primary or primary and noncontributing. SLAPIN-LIES&CO 200 SHEFFIEID STREET,SUITE 104 MOUNTAINSIDE,NJ 07092-2314 G-140331-A Page 2'of 2 (Ed.01M1) POLICY NUMBER: 2082790277 COMMERCIAL AUTO CA 20 48 02 99 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED INSURED This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement. This endorsement identifies person(s) or organizations)who are "insureds" under the Who Is An Insured Provision of the Coverage Form. This endorsement does not alter coverage provided in the Coverage Form. This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below. Endorsement Effective: Countersigned By: Named Insured: orized Representative) SWIM-IMB&CO SCHEDULE 200 slim m STREET,SUITE 104 MOUNTAINSIDE,NJ EM-2314 Name of Person a)or Organization(a): AS REQUIRED BY WRITTEN CONTRACT OR AGREEMENT (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to the endorsement.) Each person or organization shown in the Schedule is an "insured" for Liability Coverage, but only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured Provision contained in Sectlon 11 of the Coverage Form. G-18669-A OVA VA (Ed. 10/92) POLICY NUMBER: 2082790280 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET ADDITIONAL INSURED ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA PLUS COVERAGE PART EXCESS THIRD PARTY LIABILITY POLICY It is agreed that if the Blanket Additional Insured Endorse- 2. If the limits specified in the written contract or agree- ment is attached to the 'underlying general liability policy ment are greater than the limits provided by the under- pursuant to a written or oral contract or agreement be- lying policy, then this insurance is excess over the in- tween you and another person or organization (called ad- surance provided by the underlying policy. The limits ditional insured), this insurance is excess over such insur- of liability for the additional insured is the lesser of: ance provided to the additional insured subject to the fol- a. The limits specified in the written contract;or lowing conditions: 1. If the limits specified in the written contract or agree- b. The limits of the underlying policy plus the limits of ment are less than the limits provided by the underly- this policy. ing policy, then no coverage is provided to the addi- These limits are inclusive of and are not in addition to the tional insured under this policy. limits of insurance shown in the Declarations. SLAPIN-LIEB &CO 200 SHEFFIELD STREET,SUITE 104 MOUNTAINSIDE,NJ 07092-2314 r ■e 's i si n?i ii r� ac G-18669-A Page 1 of 1 (Ed. 10192) r IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies)must be endorsed.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER i The Certificate of Insurance on the reverse side of this form does not constitute a contract behveen the issuing insurer(s), authorized representative or producer,and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25(2001108)