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HomeMy WebLinkAboutPEASLEY, ALDINGER & OBYMACHOW - Professional Services Contract to perform a water rate study 3/17/97 Expires 6/17/97 - 1997-03-17 CITY OF HUNTINGTON BEACH f,. 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LET;ER O TRANsmiTTAL DATE: To: - K/ Name Street Cite, State,Zip ATTI:,',MOiv: /SST/tfN L A 4d1NG[ DEPARTMENT: V/ /Q�w RE: 4 �a�s/a�v�,ceT J See Attached Action Agenda Item Enclosed For Your Records Is An Eseculed Copy Of The Above Referenced Item For Your Records. Ccanie Brockway City Clerk Attaclunents: Action Agenda Page Date Agreement Lnsurance_ 11� RCA Other Remarks: CC: 1-70-N J �b y' RCA Ag:ee::Icnt k"'11j;surance Other i`a e Dcparhuentof�F / / /V 1if — RCA ✓ Agreement V Insurance Other N'ri ^.e Department _ RCA— .Agreement Insurance Otl:cr Dame Dcp rmnent Risk Managcmcnt :11sur nce Copv--/— (Telephone: 714-536.5227) DP nt. 600.10 Council/Agency Meeting Held: Deferred/Continued to: approved ❑ Conditionally Approved ❑ Denied City Clerk's Si ature . 7-11 Council Meeting Date: March 17, 1997 Department ID Number: PW 97-021 CITY OF HUNTINGTOWBEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrato - �C�_ PREPARED BY: LES M. JONES, II, Director of Public Works SUBJECT: Approval of Contract for Water Rate Study Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: A study of the Water Enterprise Fund is proposed. The draft report of Phase I is complete. Phase II will examine rate compliance with Proposition 218. The final report will provide a rate determination model, and recommend a rate adjustment strategy. Funding Source: Required funds, in the amount of $13,759 are available in the Water Fund, Account E-EW-PW-921-3-90-00. Recommended Action: 1. Approve the contract for Phase II of the Water Rate Study 2. Approve waiver of the insurance requirement that the party provide a separate attached endorsement naming the City , its agents, officers and•employees as additional insured. Alternative Action(sl: 1. Do not approve the contract, and do not proceed with the second phase of the study. 2. Do not approve the contact, and direct staff on further actions. Z:1-- U r y x�� ) •tt7N 1ti h!- �. b RE VEST FOR COUNCIL ACTIOP MEETING DATE: March 17, 1997 DEPARTMENT ID NUMBER: PW 97-021 Analysis: In December, the Public Works Department, requested proposals for a comprehensive study of the Water Enterprise Fund. Request were distributed to seven qualified agencies. Two firms responded to the request. Based on qualifications and cost, Peasley, Aldinger and O' Bymachow, an accountancy corporation, was selected to perform the study. The first phase, a Rate Structure Evaluation was completed in January. The draft report explains principles and philosophies to consider when developing water rate structures. Although the study analyzes the current rate formula and suggests possible modifications, it addresses only one component of the rate process. Both phases must be combined to establish an overall rate strategy. City Council approval is required to proceed with the second phase of the report. Phase Two, the Report on New Rates, will outline a rate adjustment strategy and provide a rate determination model that can be used by our staff for future adjustments. The consultant will review revenue needs, service costs and assess current rates. Phase Two will also cover compliance with current interpretations of Proposition 218. If necessary, operational adjustments can be made before the July 1 deadline, as required by law. Information gained from Phase Two will be incorporated into the FY 1997/98 budget. Required rate modifications can then be discussed during the preliminary budget preparation. The proposal will review revenue requirements, capital depreciation needs, allocation of overhead and special funds accounting. The study will provide information that can be integrated into a sound rate adjustment program. Environmental Status: Not applicable Attachments): City Clerk's Page Number Professional Services Contract for Peasley, Aldinger & O'Bymachow 2 Scope of work for Phase Two--Report on New Rate Design LMJ/id 0024011.01 -2- 03111/97 1:51 PM PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND PEASLEY,ALDINGER&O'BYMACHOW TO PERFORM A WATER RATE STUDY THIS AGREEMENT,made and entered into this 17 t tday of March , 1997, by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY",and Peasley, Aldinger& O'Bymachow, a California corporation,hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to perform a water rate study k analysis and provide a rate construction model for the City of Huntington Beach; and Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and - CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. WORK STATEMENT CONSULTANT shall provide all services as described in the Request for Proposal, and CONSULTANT's proposal dated November 13, 1996 (hereinafter referred to as Exhibit "A"), which is attached hereto and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONSULTANT hereby designates Christian L. Aldinger, 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. 3. TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of the 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(3)months from the date of this Agreement. These times may be 1 3/k/PCDiTeas1ey/2118/97 extended with the written permission of the 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 the 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 Thirteen Thousand Seven Hundred Fifty Nine Dollars ($13,759). 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 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 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". B. Delivery of work product. A copy of every technical memo and report prepared by CONSULTANT shall be submitted to the 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. The CONSULTANT shall submit to the 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 the CONS ULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and 2 34OWD/Peulcy/3/12/97 S). 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 the 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. D. Any billings for extra work or additional services authorized by CITY shall be invoiced separately to the 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. 7. 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 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 PROJECT or as it otherwise sees fit. Title to said materials shall pass to the 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. 3 31kWD/Peas1cyt2118197 8. INDEMNIFICATION AND HOLD HARMLESS CONSULTANT hereby agrees to indemnify, defend, and hold and save harmless CITY, its officers and employees from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this Agreement by CONSULTANT, its officers or employees. 9. WORKERS COMPENSATION CONSULTANT shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California,the applicable provisions of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONSULTANT under this Agreement. CONSULTANT shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than$100,000 bodily injury by accident,each occurrence, $100,000 bodily injury by disease, each employee, and$250,000 bodily injury by disease, policy limit. 10. INSURANCE In addition to the workers compensation insurance and CONSULTANT's covenant to indemnify CITY, CONSULTANT shall obtain and furnish to CITY the following insurance policies covering the PROJECT: A. General Liabilitv Insurance A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONSULTANT, its officers, agents and employees,while acting within the scope of their duties, against any and all claims of 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 4 3:1c1PCD.Peas1ey/2/18197 0 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. Said policy shall awpw CITY, its W� V4mpl@5,GGs as nsur-ads, 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 said abovementioned insurance contain a self-insured retention, or a"deductible"or any other similar form of limitation on the required coverage. B. Professional_Liability_Insurance. CONSULTANT shall acquire a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's professional liability in an amount not less than $500,000 per claim. A claims made policy shall be acceptable. 11. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS 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; said certificates shall: 1. provide the name and policy number of each carrier and policy; 2. shall state that the policy is currently in force; 3. shall promise to provide that such policies will not be canceled or modified without thirty(30) days prior written notice of CITY; 4. and shall state as follows: "The above detailed coverage is not subject to any deductible or self-insured retention, or any other form of similar type limitation." 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 5 3!k/PCp.Peasley,'2/16197 insurance. CONSULTANT shall pay, in a prompt and timely manner,the premiums on all insurance hereinabove required. 12. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. 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. 13. 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. 14. 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 consent of CITY. 15. COPYRIGHTSIPATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 16. 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. 17. 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 6 3AJPCD/Pew1ey/2/18/97 same in a sealed envelope,postage prepaid,and depositing the same in the United States Postal Service, addressed as follows: TO CITY: . TO CONSULTANT: Les Jones, Director of Public Works Christian L. Aldinger, Vice President City of Huntington Beach Peasley, Aldinger& O'Bymachow 2000 Main Street 2120 Main Street, Suite 265 Huntington Beach, CA 92648 Huntington Beach, CA 92648 18. 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. 19. 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. 20. 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. REST OF PAGE NOT USED 7 3/k/PM/Peasley/2/19/97 i • 21. ENTIRETY 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. PEASLEY, ALDINGER& O'BYMACHOW, a CITY OF HUNTINGTON BEACH, A municipal California corporation, corporation of the State of California Christian L. Aldinger, Vise President Mayor vice i By: ATTEST: �� D� GBH - Mara Q BS nachow, Secretary City Clerk a77v 9� AND APPROVED: APPROVED AS TO FORM:,- . City Admi s rator �`� C�l�City Attorney INITIATED AND APPROVED: r X'3hh1 . P„'DTicor olX%W14o 8 3/k/PCD/Peuley/2/18/97 h? CITY OF HUNTINGTON BEACH 2 0 0 0 Main Street P . O . B o x 1 9 0 Cal i f o r n i a 9 2 6 4 E Les M. Jones II Public Works Department Director (714) 536-5431 October 25, 1996 Subject: Request for Proposal Water Enterprise Fund Financial Study The City of Huntington Beach is seeking proposals to perform a comprehensive study of the Water Enterprise Fund. The study will analyze and make recommendations regarding rate structures, reserve funds, depreciation methods and related issues. Separate components will be addressed in each of the five phases. The Huntington Beach Water Division manages a $20-25 million annual operating budget. An eleven year, $50 million Master Plan for capital improvements was begun last year. The financing plan includes a capital facilities charge on new development, and a monthly surcharge to all water customers. The Master Plan represents a significant financial commitment to both the City and the public. The requested study will address the issues of rate equity, reserve funds and overhead charges. A Request for Proposal follows this letter. Proposals must be submitted by November 13, 1996. Questions regarding the study may be directed to Linda Daily, at 714-536-5599. Thank you for your interest in working with the City of Huntington Beach. Sincerely, Les M. Jones, II Director of Public Works LMJ:LDI wTRCVR.00C i • REQUEST FOR PROPOSAL for Water Enterprise Fund Financial Study 1. Introduction and Objective The City of Huntington Beach is seeking proposals and quotations from professional accounting firms to perform a comprehensive study of the Water Enterprise Fund. The objective of the study is to determine the status of the fund; and provide direction for future actions. The study will analyze rate structures, reserve funds, depreciation methods and related issues. The results will be presented in five phases. Specific issues and questions are detailed in the Scope of Work. II. Information Available from the City The City will provide available financial information and documentation. III. Consultant's Representative The consultant will assign a responsible representative and an alternate, and identify both in the proposal. This representative will remain in charge of, and informed about, the project. If the primary representative should be unable to complete the project, the alternate will become the representative. The City must approve any other changes in responsible representative. The City will have the right to reject other proposed changes in personnel. IV. City's Representative The City will assign a responsible representative to administer the contract, answer questions, and assist the consultant in obtaining information regarding the project. All correspondence from the consultant to the City should be addressed to the attention of Linda Daily, Public Works Department. She may be reached at 714-536-5599. V. Meeting Attendance The Consultant will attend all meetings necessary to obtain a complete and accurate understanding of the City's needs. Payment for meetings will be included in the proposed fee. City staff will coordinate required meetings. VI. Schedule The City's anticipated schedule is included in the Scope of Work. Rapid completion of the study is important to the City. Should the consultant be unable to meet the schedule, please address this topic in the proposal. Please include a work schedule for each phase of the study. • • VII. Insurance Requirements The Consultant shall maintain the following minimum insurance requirements (as applicable) for the duration of the project: A. Professional Liability Coverage-- $500,000 per occurrence. B. Worker's Compensation Coverage-- $100,000 bodily injury by accident, each accident; $100,000 bodily injury by disease, each employee; $250,000 bodily injury by disease, policy limit ; or, sign a Declaration of Non-Employer Status, available from the City. Vill. Form of Agreement The consultant will enter into a Professional Services Agreement with the City based on the contents of this RFP, the Consultant's proposal, and standard form of agreement, if required. IX. Proposal Requirements and Selection Procedure Proposals should be structured to correspond with the five phases outlined in the Scope of Work. Each phase of work should be quoted separately. The ability to meet the schedule for completion of Phase I, will be an essential factor in the selection process. A quotation for the entire project should also be included. Submit quotations in a separate envelope, or section, of the proposal. Five copies of the proposals should be delivered to the City of Huntington Beach, Department of Public Works, 2000 Maid Street; by_5:00 P.M -November 13, 1996 The proposal of services and fees shall be submitted in a sealed envelope clearly marked "WaterEnterp►rse Financial Study". Late proposals will not be accepted. The City will review all proposals from qualified firms and may invite one or more firms to an oral interview. The Public Works Director will then make a recommendation to contract for services with the selected firm. X. Scope of Work Identification of Issues and Services to be Provided Water Rates: Include usage charges; basic (meter) fees and fire protection services for all customers Current Are rates adequate to support the desired level of service? Is the rate structure fair and equitable to all user categories? Are fixed charges in an appropriate ratio to.fixed expenses? Future Given present Operating habits, what trends in future rate increases can the Water Division expect? Discuss and recommend rate calculation methods. Can indexing help determine and maintain adequate rates? Which indexes are appropriate? 2 WTRFUND.DOC Capital Facilities Charges: Include the monthly surcharge What are the appropriate accounting procedures necessary to track and maintain accountability for the capital facilities charges and projects funded by the charges? Is the charge applied fairly and equitably to all users? Should the City pay the charge? Reserve Funds: What is the status of the reserve fund? What are common policies within the industry for appropriate reserve levels to maintain? How are reserves designated for capital replacement? Are reserve funds and depreciation funds properly and adequately separated? Depreciation Are annual depreciation accruals correctly accounted for and calculated? How should depreciation of facilities and equipment be determined? What is the status of depreciation funds? General Fund Charges Are the general fund charges (City overhead) allocated to the Water Division appropriate? What criteria are used to determine the charges? Should the charges include payment for City water usage? Report Format Schedule and Deliverables The final report will be structured and delivered in phases. Each phase will address specific issues and questions as outlined in the scope of work. Phase I In a report form, analyze, discuss and determine if the present rate structure for both the water rate and the capital facilities charge is fair and equitable. Identify and discuss alternative types of rates, or structures, which could be used to achieve maximum fairness and equity in rates. Completion Date: December 30, 1996 Phase II Based on the most recent budget for the City, demonstrate through a rate determination model, the adequacy of present and future rates to meet revenue requirements. Provide the software program used for the rate modeling. Provide a simple software program for tracking and projecting revenues and expenses so that it can be used by the City for budget planning. Completion Date: January 15, 1997 3 WTRFUND.DOC i • Phase III Identify, study and explain the present method used by the City to allocate overhead (general fund charges) to the Water Division. Prepare and analysis of the impact on the Water Division. Include a discussion of payment for City water usage. if appropriate, discuss the potential challenges of State Proposition 21 B. Completion Date: January 30, 1997 Phase IV Explain the current methods used for depreciation, and if required, prepare a remaining life depreciation study to determine proper depreciation rates. This report will include an analysis of the current reserve and depreciation funds. Provide recommendations for allocating, separating and expending these funds. Completion Date: February 15, 1997 Phase V. Prepare flowcharts describing the options and preferred methods to account for the funds received through the capital facilities charges, and of depreciation recovered through the revenue requirement component. Completion Date: February 28, 1997 4 WTRFUND.DOC Water Enterprise Fund Financial Study Request for Proposal Sent October 25, 1996 Firm Response Bartle Wells and Associates Received November 13, 1996 1636 Bush Street Phases 1 & 11 S41,000 San Francisco CA 94109 Entire Project $62,500 Attn: Lora Stovall Arthur Anderson and Company Received November 14, 1996 18500 Von Karman, Suite 1100 Declined to Bid Irvine CA 92715 Attn: Dale Fraaza Peasley, Aldinger and O'Bymachow Received November 15, 1996 2120 Main Street Suite 265 Phase I $6,280 Huntington Beach CA 92648 Phase II S11,625 Attn: Christian Aldinger Phase III $7,527 Phase IV S9,796 Phase V $3,510 $38,708 Revised Phase II Received March 5, 1997 Phase II $13,759 Phase III-V unnecessary at this time Deloitte, Touche and Company No Response 695 Town Center Drive#1200 Costa Mesa CA 92626 Attn: Gary Smith Conrad and Associates No Response 1100 Main Street Irvine CA 92714 Attn: Ronald L. Conrad Ernst and Young No Response 3750 University, Suite 600 Riverside CA 92501 Attn: Sally Anderson Price Waterhouse No Response 575 Anton Suite 1100 Costa Mesa CA 92626 5 WTRFUND.DOC PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND PEASLEY, ALDINGER& O'BYMACHOW TO PERFORM A WATER RATE STUDY Table of Contents 1 Work Statement....................................................................................................1 2 City Staff Assistance..............................................................................................2 3 Time of Performance.............................................................................................2 4 Compensation .......................................................................................................4 5 Extra Work...........................................................................................................2 6 Method of Payment...............................................................................................2 7 Disposition of Plans, Estimates and Other Documents ...........................................4 8 Indemnification and Hold Harmless.......................................................................4 9 Workers' Compensation.........................................................................................5 10 Insurance...............................................................................................................5 11 Certificates of Insurance.......................................................................................6 12 Independent Contractor........................................................................................7 13 Termination of Agreement....................................................................................7 14 Assignment and Subcontracting............................................................................7 15 Copyrights/Patents...............................................................................................7 16 City Employees and Officials................................................................................8 17 Notices.................................................................................................................7 18 Immigration..........................................................................................................8 19 Legal Services Subcontracting Prohibited.............................................................8 20 Attorney Fees.......................................................................................................9 21 Entirety................................................................................................................ 9 3/k1PCD/Penley12118197 S PROPOSALTO THE CITY OF HUNTINGTON BEACH TO PERFORM A COMPREHENSIVE STUDY.._ , OF THE WATER ENTERPRISE FUND PROPOSAL SUBMITTED NOVEMBER 13, 1996 i t PEASLEY. ALDINGER & O'BYMACHOW AN ACCOBNTllNGY CORPORATION 2120 MAIN STREET.SUITE 266 6ERALD W.PEASLEY.CPA(RETIRED) HUNTINGTON BEACH.CA�,WORNIA 22646 ;>>41 636.4a16 µATT A-PEASLEY.CPA FAX;7'4;536.2039 CHRISTIAN L.ALDINGER.CPA µARA ROSSI O-gYMACHOW.CPA November 13, 1996 City of Huntington Beach Public Works Department 2000 Main St. i Huntington Beach, CA 92648 i . i Dear Sirs: We are pleased to submit this proposal to perform a comprehensive study of the water enterprise fund of the City of Huntington Beach. This proposal is intended to encompass the following: 1. Understanding of engagement and identification of services to be provided Il. Methodology and approach Ill.. Proposed work-schedule IV. Qualifications of our firm V. Firm personnel Vl. Consultant representative VII. Client references VI ll. Estimate of fees for services 1. UNDERSTANDING OF ENGAGEMENT AND IDENTIFICATION OF URVICES TO BE PROVIDEQ It is our understanding that the City of Huntington Beach is requesting that the comprehensive study of the water enterprise fund be addressed in five phases, each of which could be completed . independently of another. As stated in the request for proposal, completion dates have been identified for each of the five phases, and the overall study will be a series of individual reports delivered in phases. Within the intended scope of work is a list of questions which should be addressed and answered in the appropriate phase of the study. We understand that for phase one of the study time is of the essence and the ability to meet the completion date of December 30, 1996 is critical. II. METHODOLOGY AND APPROACH Our rethodology and approach to completing this type of project is to identify the objectives and delivefables for each phase and with a solid knowledge of what is to be achieved, prepare a task oriented list for each phase so that the overall project can be completed as efficiently as possible. City of Huntington Beach November 13, 1996 Page two Ill. PROPOSED WORK SCHEDULE If selected to perform this study, we will contact city personnel to discuss the scope, schedule meetings, and exact timing of our work. To achieve the desired objective of this project we have identified by phase and task the following work schedule: ha 1 , REPORT ON EQUITY OF PRESENT RATES a. Meet with city staff to gather information regarding the present rate structure b. Prepare report identifying alternative rate structures, discuss pro's & con's of each. c. Meet with city staff to discuss preliminary findings. d. Identify and propose the best rate design method to use under the present circumstances. e. Produce final report Phase Il REPORT ON NEW RATE DESIGN a. Meet with city staff to discuss 1996-97 adopted budget for the water division. b. Study 1996-1997 budget. c. Based on the 1996-97 budget, determine revenue requirements for the water division. d. Prepare a rate determination spreadsheet using Lotus 123 (using both the present rate structure and the proposed method identified in phase I.) e. Assess the adequacy of present rates to meet revenue requirements.- f. Meet with city to discuss preliminary findings. g. Calculate proposed rates. h. Prepare report identifying any surplus or deficiency as present rates and at proposed rates. I. Deliver final report. Phase Ill REPORT ON CITY OVERHEAD CHARGES TO WATER IVISIO a. Meet with city staff to discuss the overall method used to allocate the city's general fund (overhead) charges to the water department. b. Prepare an analysis of the benefits received by the water department from the general fund and identify replacement cost of those services. C. Prepare a discussion of how payment for the city's water usage would effect revenue requirements. d. Meet with city staff to discuss preliminary findings. e. Produce final report. Phast V BEPORT ON DEPREC16T_ION R. Meet with appropriate city staff-16 fWan=tmderstanding of the current methods used for depreciation. b. Prepare a status report identifying the current reserves and depreciation funds. C. Meet with staff to discuss preliminary findings. d. Prepare depreciation study. e. Propose methods for tracking uses of funds generated from the depreciation component of revenue requifements. f. Produce final report. City of Huntington Beach November 13, 1996 Page three III. PROPOSED WORK SCHEDULE (continued) Phase V REPOR Qh ACCOUNTING FOR FUNDS FOR CAPITAL , a. Propose method to account for funds received through capital facilities charge and from depreciation. i b. Prepare flow chart describing preferred method. c. Produce final report. I Providing we are given a notice to proceed at least 30 days prior to the completion deadline we can complete all phases in a timely manner. I IV. QUALIFICATIONS OF OUR FIRM Peasley,Aldinger and O'Bymachow, An Accountancy Corporation formerly Peasley Accountancy Corporation, was organized in its present form in 1984, predecessor accounting firms date back to 1972. Our offices are located in Huntington Beach, California and at the present time, include five professional and two clerical staff. We provide services to a wide variety of clients in the Califomia area and as far away as Montana, Nevada and Hawaii. The largest segment of our work is in the area of utilities, both public and private, providing services in the areas of accounting, auditing, utility rate design and consulting. We also provide accounting auditing and consulting services, services to municipalities and local governments. All certified public accountants currently employed by Peasley, Aldinger & O'Bymachow are members of both the American Institute of Certified Public Accountants and the California Society ' of Certified Public Accountants. In connection with our memberships, we participate in the Quality - .. Review Program and have successfully undergone two reviews over the past six years and obtained favorable results. Appendix A to this proposal includes resumes of our key personnel. It is our goal to provide out clients with the highest quality of service when conducting our engagements.We wish to establish solid working relationships whereby our clients can utilize our vast array of services throughout they year. Adams Ranch Mutual Water Company* Borrego Springs Water Company* Jess Ranch Utilities Peerless Water Company, Inc.* Waikoloa Sanitary Sewer Company* Arrowhead Manor Water Company* Waikoloa Water Company* Mountain Water Company* Walnut Valley Water District* City of Coronado* Newhall County Water District* California Domestic Water Company* Park Water Company` Apple Valley Ranchos Water Company* Santa Paula Water Works, Ltd.* East Pasadena Water Company* Mesa Crest Water Company* Clark Fork Water Company Fruitridge Vista Water Company West Hawaii Utility Company* Hillview Water Company * Have provided rate design services City of Huntington Beach November 13, 1996 Page four IV. QUALIFICATIONS OF OUR FIRM (continued) Noted below are various utilities for which we have provided services in the past. Azusa Valley Water Company* Arvin Water Company* Joshua Basin Water District Bella Vista Water District' Yucca Water Co., Ltd' Castaic Lake Water Agency' Elsinore Valley Municipal Water District' City of Chino Hills' City of Imperial Beach* Morro Bay Garbage Company' San Luis Garbage Company' City of Fontana Twentynine Palms Water District Valencia Water Company* Metropolitan Water Company* City of Big Bear Lake Yucaipa Valley Water District* Great Oaks Water Company Yuima Water District Pomona Valley Water Company Vallecitos Water District Have provided rate design services V. FIRM PERSONNEL_ Two of the Firm's principals, Matt Peasley and Christian Aldinger have collectively over 40 years of utility accounting experience. In November 1992, Peasley and Aldinger served on a committee t formed by the Califomia Public Utilities Commission to develop streamlined standard work papers for I rate increase applications of small water utilities(less than 10,000 connections). The overall objective of the Committee was to develop a work paper package which was easy to use yet comprehensive enough to minimize follow-up data requests form the Public Utilities Commission. Peasley's proposed work papers were eventually adopted by the Public Utilities Commission and are currently required to accompany all rate application of small utilities in California. Associated with Peasley, Aldinger& O'Bymachow is Gerald W. Peasley who has over 40 years of i utility accounting and rate making experience. For this study the project team of Christian Aldinger, Gerald W. Peasley and Julie Hammeras will provide a broad range of skills, innovative thinking and a tremendous amount of depth in terms of experience. Vl. CONSULTANTS REPRgSENTATIVE For purposes of this project Christian Aldinger will be designated the responsible representative of our firm , and will be in charge of the project. Gerald Peasley will be designated as the alternate. . I City of Huntington Beach • • November 13, 1996 Page five VI I. CLIENT REFERENCES One means of judging the high quality of our consulting services would be through contact with some of our existing clients. For your convenience, we are including the names, addresses and phone numbers of several client references. We encourage you to contact any of these individuals. { i Mr. Tom Snodgrass, Vice President Mr. Tim Flynn 2841 Gardena Avenue Mesa Crest Water Company P.O. Box 7002 P.O. Box 257 Downey, CA 90241 La Canada, CA 91012 (818) 790-2071 Mr, Charles King CK Constructian Mr. John V. Rossi Signal Hill, CA 90805 Director of Operations (310)426-1558 Elsinore Valley Municipal Water District P.O. Box 3000 Mr. Daniel Boyle Lake Elsinore, CA 92531-13000 Daniel Boyle Engineering, Inc. (909) 674-3146 23231 S. Pointe, #103 Laguna Hills, CA 92653 Mr. Jean DiAngelous (714) 768-2600 General Manager Newhall County Water District Mr. Steve Hicks 23780 N. Pine Vice President Newhall, CA 91321 West Hawaii Utility Company (805) 259-3610 150 Waikoloa Beach Drive Kamuela, HI 96743 (808) 885-1000 Mr. Scott Huth Director of Public Services City of Coronado 1825 Strand Way Coronado, CA 92118 (619) 522-7380 Vill. FEES FOR SERVICE$ The estimated fee for this project is submitted under separate cover. Our standard billing rates by job classification are as follows: Principal, CPA 61141hr Managing CPA 8 851hr Staff Accountant $ 451hr to$ 651hr Clerical $ 411hr The request for proposal states that the consultant will attend all meetings necessary to obtain complete and accurate understanding of the City's need related to this project. We have in our proposed fee for each of the phases included time for meetings for planning, progress, and draft reports. Additional meetings are not included in our work plan will be billed separately at our standard billing rates. City of Huntington Beach November 13, 1996 Page Six We are available to discuss this proposal at any time and we look forward to the opportunity to be of service to you. Yours truly, PEASLEY, ALDINGER & O'SYMACHOW AN ACCOUNTANCY CORPORATION Christian L. Aldinger Certified Public Accountant FEE E817 4TE TO ACCOWMrrPHaPA9Ac _ OOA0WhEAWW STUW OF 7T�WATER F FU1n SWANREO NOW&BIEW la IM FRI124 LATE AL STAFFA AFF ACCr MATT JULE PHASE T ` :-::::.-.OE r ALO LEY FEYNOSO CLERICAL TOTAL' I REPORT ON PR1=$ENT RATE DEMON EOLNTY L GATIIERCUWENTRATEINFORMATION 4 b. V REPORT IDENTIFYING ALTERNATIVE RATE BTRUCTIMS 4 e 34 a MEETVVRH CITY STAFF TO DISCUSS PFELIPANARY FINDINGS 4 d. IDENTIFY AND PROPOSE BEST ALTERNATIVE 2 2 4 L PRODUCE FINAL FIEPORT e 2 8 Is TOTAL HOURS 42 6 0 0 0 12 82 HOLt}LYRATE 6114 126 6114 SW s4e silt 0 REPORT ON NEW RATES L w-ET WITH CITY TO DISCUSS 1ee5-0 BUDGET 4 4 b. STUIOY 16ee-07 BLCGET to 18 a DETENJANE WATER DIVISION REVENLE REOUIFiEIENTS 8 2 e 18 d. CFTEATE RATE DE'TE TION SPREADSHEET AI8D WAMf L 20 4 tg 38 a ASSE88 ADEQUACY OF PFIESENT RATES 6 1 0 I. MEET WITH CITY STAFF TO DWAX36 PREUABNARY FINDINGS 4 4 e. CALCULATE PROPOSED RATES e 2 2 12 h. PRODUCE FINAL REPORT 8 1 2 e 17 I. PREBENTTO PUBLIC WORKS LW4AGEMENT 8 6 TOTAL HOURS 75 3 11 20 0 8 113 HOURLY PATE ill 8125 i114 $w $45 i41 550 St MO 501 M. SILOS pl REPORT ON CITY OVERWFAO CHARGED TO WATER INV. L MEET WITH ACCNTS DEPT-DETERIANE ALLOCATION ME THD e 4 4 to b. ANALYZE SENEFITRECT)BY WATER DIVISION 4 2 e C. DETEFOANE EF FEC SOF GRY LIKE OF WATER AND PAYMENT 10 3 8 18 d. WRITE REPORT IDENTFYIN13 EFFECTS ON FEV REOUIFIE ENT8 e 2 8 8 20 4. MEET WITH CITY STAFF TO DISCUSSPREUMYNARY FINDINGS 3 3 e t FRODLJOE FINAL FEPORT 8 8 14 TOTAL HOURS 3e 3 11 to 0 12 el HOLIALYRATE S114 812e 4114 se0 $4e $41 A 44 7 N REPORT ON DEPRECIATION L MEETING TO GATHER INFO ON CURRENT Di AETHODS 6 6 b. PREPARE STATUS REPORT ON DEFRECLATICIN FUNDS 9 8 e. 164EET WITH CITY STAFF TO DISCUSS PFEUMNARY FINDINGS e e d. PREPARE DEPN STUDY TO DETERANNE PROPER DEPN RATES a 40 46 & IDENT1Fy BEST METHOD TO ACOOUNTFOR DEPN FUNDS 8 Is 24 I. PROOl1OE FINAL REPORT 8 4 8 20 TOTAL HOURS 42 0 20 40 O e 110 HOURLY RATE $114 6125 $114 se0 $43 µ1 " 7W 400 V REPORT ON ACCOUNTING FOR FUNDS FOR CAPITAL L PREPARE REPORT IDENTIFYING AND BEST ALTERNATIVES e a b. CREATE FLOWCHAFTT DESCRIBING PFEFEFFIED INETHOO 24 24 a PRODUCE FINAL REPORT 8 2 6 t4 TOTAL HOURS 8 0 10 24 0 e 48 HOURi12 HOURLY RATE Sill, 5 114 iB0 $451 641 11,1401 1 440 61 PEASLEY. ALDINGER & IISBYMACHO`+1T Ax ACCOUNTANCY CORPORATION 2120 MAIN STREET.SUITE 265 GERALD W.PEASLEY.CPA{RETIRED) HUNTINOTON BEACH,CALIFORNIA 82646 (714)536-4416 MATT A.PEASLEY.CPA FAX(714)63a•2938 CHRISTIAN L-ALDINQER.CPA MARA ROSSI O'SYMACHOW.CPA March 4, 1997 Linda Daily City of Huntington Beach Public Works Department 2000 Main St. Huntington Beach, CA 92648 Amendment to proposal dated Nov. 13, 1996 Dear Ms. Daily: In a proposal dated November 13, 1996 we responded to a RFP dated October 25, 1996 to perform a comprehensive study of the water enterprise fund of the City of Huntington Beach. We have completed Phase I of the study and are the City has requested that we make amendments to the scope of work for Phase II. The fundamental result of this comprehensive study will be the proposed water rate. In considering water rates, Phase I dealt primarily with how to recover revenue requirements ("slice the pie" ) and Phase If was intended to determine the revenue requirements("size of the pie"). In our original proposal the scope of the work for Phase II was identified as follows: Phase II REPORT ON NEW RATE DESIGN a. Meet with city staff to discuss 1996-97 adopted budget for the water division. b. Study 1996-1997 budget. c. Based on the 1996-97 budget, determine revenue requirements for the water division. d. Prepare a rate determination spreadsheet using Lotus 123 (using both the present rate structure and the proposed method identified in phase 1.) e. Assess the adequacy of present rates to meet revenue requirements. f. Meet with city to discuss preliminary findings. g. Calculate proposed rates. h. Prepare report identifying any surplus or deficiency as present rates and at proposed rates. I. Deliver final report. I City of Huntington Beach March 4, 1997 Page two The scope of the work identified by the City in the October 25, 1996 request was determined before the general election in November and before Proposition 218 was approved by the voters. As a result of the passage of Proposition 218 you have asked us to modify our proposed scope of work for Phase 11 to include consideration of the effects that Proposition 218 will have on water rates of the City of Huntington Beach. The following is an expanded scope of work for Phase II intended to include consideration of Proposition 218. 1. Working with City staff, obtain and assemble base information related to: a. Present customers and projected growth b. Historical operating expenses and projected operating expenses c. Historical water usage and projected water usage d. Capital improvement projects e. In-lieu payments to the general fund f. Other indirect charges allocated from the general fund. 2. Study 1996-97 operating budget for the City: a. Consider proper allocation of departmental costs in all areas to see if Water Department is properly paying for all benefits received. 3. Determine all other revenues or expenses affecting revenue requirements of the Water Department. 4. Analyze water consumption by customer type and meter size & project consumption for the 1996- 97 year. 5. Determine the City's total investment in Water Utility Plant by analyzing the fixed asset property records of the Water Department. 6. Meet with appropriate city staff to gain an understanding of current methods used for the calculation of depreciation. 7. Assess the adequacy of depreciation accruals in comparison to the total investment in water utility plant. a. If depreciation accrual is determined to be incorrect consider Phase IV of original proposal. b. Meet with City to discuss if Phase IV is required. 8. For the year 1996-97 year, determine total revenue requirements for the Water Department using alternative methods. a. Cash basis- (typical for cities) b. Utility basis -(typical for privately owned utilities) 9. Assess adequacy of present rates to meet projected revenue requirements for the 1996-97 year. 10. Meet with City staff to determine best revenue requirement calculation method to use. 11. Calculate rates and recommend changes in rates to provide for the full and complete recovery of costs associated with providing water service. City of Huntington Beach • March 4, 1997 Page three 12. Meet with the City staff to discuss preliminary findings. 13. Prepare rate determination spreadsheet and model using Lotus 123 and provide to City to use for future years. 14. Prepare and deliver final report. The objective of our work plan in Phase II is to prepare a revenue require study which identifies the total costs associated with providing water service within the City and fairly allocates the costs to the customers. Stated another way, to charge each customer amount which is reflective of the cost to provide the service, or in simplest terms, to determine water rates which are cost based. This concept of cost based rates is a large step toward defending present rates and successfully justifying future rate adjustments. Although the final results and impacts of Proposition 218 won't be known until the court cases(which are likely to happen) are decided, it is commonly felt that cost based rates will survive the challenges brought by Proposition 218, and in essence one of the primary reasons behind Proposition 218. One of the intents of Proposition 218 is to prohibit the use of revenues derived for a stated purpose for any other purpose. The tasks identified in our study process are intended to identify and allow for the capture of all costs related to providing water service. Also at issue in the confines of Proposition 218 is the justifiability of the City's "In Lieu" payment which has been part of the water rate since its inception in 1959. Prior to Proposition 218 the City had no compelling reason to justify the in lieu payment and without the incentive to do this provided by Proposition 218, it is suspected that the city has possibly absorbed many indirect costs (which should be allocated to the water operation) into the general fund. In our study process we will identify and discuss with staff alternative methods to allocate various departmental costs , striving to make sure that all costs associated with providing water service are considered. As the final interpretations of Proposition 218 will not be known for quite some time, our recommendations and guide related to Proposition 218 will be based on existing information and data made available and developing through out the study process. In our original proposal we estimated our fee for Phase II based on the original scope of work in this project. Attachment A to this amendment identifies the revised time estimates and resulting fee. We would like to thank City for considering our firm to perform a revenue requirement study and look forward to assisting the Water Department in dealing with the challenges presented by Proposition 218. Yours Truly PEASLEY, ALDINGER & O'BYMACHOW AN ACCOUNTANCY CORPORATION Christian L. Aldinger Certified Public Accountant AMENDED FEE ESTIMATE TO ACCOMPANY REVISED PROPOSAL FOR PHASE II OF THE COMPREHENSIVE STUDY OF THE WATER ENTERPRISE FUND ORIGIALLYSUBMII IF NOVEMBER 13, 1996 REVISED MARCH S. 1997 ESTIMATE OF MANHOURS :: f PRINCIPAL' SOCIATE 'PAINCIPAL TAFF ACCT STAF-'CCT :-- -: -CHRISTIAN GERALD. :::'':MATT JULJE, MATT .::::PHASE TASK > " DESCRIPTION ::..::.:; ALDINGER '..PEASLEY' ::PEASLEY. HAMME .'.REYNOSO CLERICAL . -:'-'TOTAL PHASE II REPORT ON NEW RATES 1. OBTAIN AND ASSEMBLE BASE INFORMATION 8 2. STUDY 1996-97 BUDGET 16 16 3. DETERMINE OTHER EXPENSES a REVENUES 4 4 4. ANALYSE WATER CONSUMTION BY CUSTTYPE&MTR SIZE 6 _ 5. DETERMINE WATER PLANT INVESTMENT 6 2 8 6. DETERMINE METHOD USED TO CALCULATE DEPRECIATION 2 7. ASSESS ADEQUACY OF DEPRECIATION ACCRUAL 2 8. DG(ERMINE WATER DIVISION REVENUE REQUIREMENTS 6 1 2 8 17 9. ASSESS ADEQUACY OF PRESENT RATES 4 10. MEET WITH CITY STAFF TO DISCUSS BEST METHOD 4 • 11. CALCULATE PROPOSED RATES 8 12. MEET WITH CITY STAFF TO DISCUSS PRELIMINARY FINDINGS 4 13, CREATE RATE DETERMINATION SPREADSHEET AND MODEL 20 4 12 36 14. pAODUCE FINAL REPORT AND PRESENT TO PUBLIC WORKS STAFF 6 2 all 16 TOTAL HOURS 86 3 16 20 0 8 135 HOURLY RATE $114 $125 _ $114 S60 $45 S41 $10,032- S375 S1,824 S1 00 $0 S328 $13759 Mar-06-97 09 : 12A P A & O ACCOUNTAN �(pp� 1 714 535 Z039 P. 04 GATE[MMJD DJY Y) s+u GERTIFICA: : -OF .INSURANCE 12/05/9G PROPUC;" THIS CFRTjncA7E IS ISSUED AS A MATTER OF INFORMATION A11er. Lawrence. & Assoc . , 7nC . i_ ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR License #0 4 4 2 G$3 6 00.10 3/17197 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. P. 0. Box 3 3 9 jpAvmz, ( otz, I COMPANIES AFFORDING COVERAGE Bellflower, CA 90707-1339 /- — G - �5 GOtf PAN1' A I:'T Hartfcrd INrrURED _� --- -- Peasley, Aldir.ger & C'Bymachow �AN1 2120 Main Street , Suite 265 + f�nM --- -- PANr i C Hunt-:7at-on Beach, CA 92548 - — - - I roMPAn Y D COVERAGES. THIS IS TO CFRTIGY )F(A I 4(IL POLCEES OF INSURANCE USTED BELOW HAVE RFFN :SSULLI TO THE INSURED NAMEG A{{OVI•:rOR TN IC POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OIl c0N:),Ti0N Or ANY CONTRACT OR OTHEr, DOCU-JI NT WITH A.ESPECT TO (WkICH IHIS, CERTIFICATE MAY BE i"UED On MAY r'FiTTAtN. TFIt: tNSUHANCL Arr--ORDEO BY THE PGLVES OE;,C,RIF-f: "ItHI_IN IS 5.J8J=CT TO ALL THE TFRMS. FkCr USIONS AND CON11I1'QNS or,SUC,4 POLICIES LPAITS SHOWN MAN HAVE BEEN r'Ff),IC�-:;r.Y PAID C:,SR.'.5 Go TYPE CF I NSU4AJYGE POI ICY NUMBER •POLICY EFFEG7IVE�L3l:YEIfPIF1A�10N L'MITS LTN j pATZ(IVM:DDrYY,:DATE(MFrIOD/YY} A IGE-KERALUAEILITY 75S3ADTi 418 0i/11%7G Cy i j 11 7 'a:+ERA:AGC�sEeATC S2 GOJ, 000 X tCNUI_nCiAL-ENE TAL P Far Q, C GC 00110 CI A:AI4�/Ah-I X ()C';.!N .I`LRGCNAL is ADV INJURY '.S1 .p 0 U-, 0 U 0 _ VWNER'S b CONTRAC701'w rROT FACTa[`r_Gv M'i�tiCE `ST ,,�/000/ n,�00_ 0 I MEDEXf (Aft OfiePeISD-Ij Is10 000 A IAUTOMOBILELIAW, ITV} 72SBADK3418 107/11I?5 /11/97 CC,+13'X: SINGI 'vI: sue , C^^ 000 y� Y I I+P`All 7(7 - A:L OWNED AUTOC } .. -• .._.-� i i j �O�ILYInJL'RY 6tIE0U_rDA,:TOS r i + _'"arps:iar.; S IXI-IrtL)AVYOE X NON.OYd NF h Y A, ,N i SDI a.udrelj rflARAGELIAgI,I'Y -,;:cCNLv.FAr,CGOENT s .ANY A:1)D oI►,E la ThA ALI-0ONI I I Y- I"An-IACC'DENT �S r A',10REGATE s Ex0E59lIABILITY - - _r,CHOC=uFa�:N^E s I - I UMBR;LLL;0Pl1 j ArG4l uA7 - s I I I "JTt,rFtT,•aR'i;1�yMt:Ll.F:I�+ti'� i A WORI(E RS CO MPE NSATI.^.N AN 7211 E-CCR 3 3 7 0 ! 1._/1,y-: ,.• i� tom, 5 'AY D:Ly N'--S .. ... EMPLaYCRS•L:AB;LITY —`— =_r.G• r.r.La!II-�� •<) isl I 000�000 11IEPgCP4Ir'Car X0 C rA�TNEns'Ex_�u-ve +st c_c LI } -1-0 00, 0s G-�-'CERSKRE:.__ I _EXCL - _ -- -- - - -)1:EFSE-!AC�E:LAPL0VEZ.s1 000,.t QCQ I ' I � DE5cRtP omOFOPERATIOy&tLOCAT!ONSIVEHOLESfSPEGIALITEMS AV 4-U;;�'� '• "� y Cert Holder : s Ad insured red for General `.; - o1;c';r an1y. Policy #72SWOH3418 . yeP`„ ;... C�FICATE HOLDER : . CANCELLATION _ - - 5-10VLO ANY OF THE AB04t p RIBEO POLICIES eE CANCELLE D BE=ORE THE City of H-srtingCon Beach, I`..s IEXPIRATON OATS THEQEO;:,THE.9sL.INflCOMPANY WILL �MAIL Agents, officers & Emoloyees 'p, DArgw�7tT'ENNO"OE TQ7HECERi1FIGATEHOLOERNI�!✓EOTOT"iE:EFT. 2000 Main Street- Hunringto_J Beach, CA 92648 At•tn : Li-da i lY I A F12EORCPRESEtiTA�R lI1LTIOMI 1943 ACORD�5•S(3 7 Ot �7'1 G F © AC DAD COiIPt1 1M9 Mar-06-97 09 : 30A P A&O ACCOUNTANCY 1 714 536 2039 P. 01 rN C14'h if'"t(W"" CAMIC13 le aassa MornAl IY{{1P�MGt coMr4pr ~ 155 Shcisin 0r"n,Nrd Nor,Redwood GN.U 94D6;-1404 4'5 60715•JO.870 657 1777-rm-415 807.7109 l� C AMICO MUTUAL 1NSUAANCE COMPAY (CAMI ) CERTIFICATE QE IN�URANC To: Ms. Linda Daily DATE: December 9, 1996 City of Huntington Beach Public Works Department 2000 Main Street _ Huntington Beach, CA 92648 T� i ' 7 i RE: Policy #CAL01699 This is to certify that as of the date hereof a CAMICC policy of accountant's professional liability insurance insuring Peasley. Al in Fr m as the Named Insured is in effect. The policy period of such policy is OIJ01197-12/31/97 and w the per claim/aggregate limits of liability thereunder are Si/2,000,000 respectively. Such insurance is subject to cancellation as provided in the policy and to nonrenewal by the Company or by the Named Insured. Coverage is subject to al' the terms and conditions of the policy. By issuing this Certificate, CAMICO undertakes no obitigaiion to inform any persor of the cancellation or nonrenewal of the policy or of exhaustion of the limits of liability thereunder. - CAMICO MUTUAL INSURANCE COMPANY BY P Clyde akahash` Senior Undenrriter h C' 01 : .M Y ; CfLEBRATINr, A WADE Of MWAI, SUCCESS