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HomeMy WebLinkAboutRobert D. Niehaus, Inc. - 2023-08-01 (2) • PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND ROBERT D. NIEHAUS, INC. FOR PREPARATION OF CITY SEWER RATE STUDY FOR CITY OF HUNTINGTON BEACH 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, ROBERT D. NIEHAUS, INC., a hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to perform a City sewer rate study for the City of Huntington Beach; 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 Robert D. Niehaus who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 23-13254/317308 1 of 12 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on August 1, 2023 (the "Commencement Date"). This Agreement shall automatically terminate January 31, 2025 (18) eighteen months from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than two (2) years from the Commencement Date. 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. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 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 Sixty Four Thousand Seven Hundred Sixty Dollars ($64,760). 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 23-13254/317308 2of12 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." 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. 8. HOLD HARMLESS A. 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 (or alleged 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 23-13254/317308 3 of 12 apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. B. To the extent that CONSULTANT performs "Design Professional Services" within the meaning of Civil Code Section 2782.8, then the following Hold Harmless provision applies in place of subsection A above: "CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY and its officers, elected or appointed officials, employees, agents and volunteers, from and against any and all claims, damages, losses, expenses, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) to the extent that the claims against CONSULTANT arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT. In no event shall the cost to defend charged to CONSULTANT exceed CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more other defendants to the claims and/or litigation is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, CONSULTANT shall meet and confer with CITY and other defendants regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in California Civil Code Section 2782.8. C. Regardless of whether subparagraph A or B applies, CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. 23-13254/317308 4 of 12 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 without the express written consent of CITY; however an insurance policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. 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. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement. Such termination shall not 23-13254/3I7308 5 of 12 effect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 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 insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall 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. 23-13254/317308 6 of 12 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 and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without 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. 23-13254/317308 7 of 12 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 delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, 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 Robert D. Niehaus, Inc. ATTN: Dir. of Community Development ATTN: Robert D. Niehaus 2000 Main Street 140 E. Carillo Street Huntington Beach, CA 92648 Santa Barbara, CA 91301 23-13254/317308 8 of 12 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. 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 23-13254/317308 9 of 12 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 States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 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. 23-13254/317308 10 of 12 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 nonprevailing 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. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. 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 counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or 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, 23-13254/317308 11 of 12 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. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, CITY OF H t T TGTON BEACH, ROBERT D. NIEI-IAUS, INC. a mu ' i al c rpora ' n oft State of ifo By (Uk4AiLh oco e 1 c e City Manager print name INITIATED ND APPROVED: ITS: (circle one)Chairman/PresidentNice President AND 14 Director of Public Works Byj 61APPROVE 0,1ORM: Gt a ct— 1.�. N 1 P�/1( t l.6 ` print name ' y Attorney ITS: (circle one)Secretary/Chief Financial officer/Asst. Secretary—Treasurer Date RECEIVE AND FILE: 6204.(ft, 9'6/4441 City Clerk Date '01//,23 23-13254/317308 12 of 12 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) SEE ATTACHED EXHIBIT A B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: C. CITY'S DUTIES AND RESPONSIBILITIES: D. WORK PROGRAM/PROJECT SCHEDULE: EXHIBIT A EXHIBIT A s r r x „ L• �_. � � .W' e r�'��3 '�. T —s. ' �'i'dt- g - {�� x, Y^e C. METHODOL' OGY s - • �� ' -..s .�- � .,�r r' ^v m, x �`^'.�._,.;,. Yam. '�...,.tt�»,r. ��.°�....;,,��d � �.....�� .,., .....�. Sx. Task 1. Project Management/Meetings Objective: RDN is committed to providing transparent project management that fosters collaboration and ensures study success. We will prepare a Project Management Plan that wi!!guide project administration.Our quality assurance processes will ensure that products are delivered error free. Ahead of the kick-off meeting, we will provide the City with a data request form.At the kick-off meeting, we will solidify the project timeline and priorities. We will also hold bi-weekly virtual meetings to discuss project progress. Task 1.1. Project Management RDN incorporates best practices from the Project Management Institute's Project Management Body of Knowledge to establish processes that guide management procedures. For a project to be considered a success, all work must be completed on schedule, within budget, and error-free. Our project manager will prepare a Project Management Plan (PMP) to document all information necessary to execute a successful project. The PMP serves as a roadmap for the project team, defining project goals and objectives, scope of work, deliverables, budget, schedule, administrative procedures, and filing requirements. Task 1.2. Data Collection and Validation Prior to the Kickoff meeting, RDN will submit a data request to the City. The data request will include audits, budgets, general plans, capital improvement plans, customer billing records, debt service schedule, and reserve policies. For data validation and quality assurance, RDN may request additional data throughout the study to reconcile any inconsistencies. Task 1.3. Kick-Off Meeting/Progress Meetings The kick-off meeting will serve as a forum where City staff and the RDN team will meet to discuss project objectives,approach,work plan,schedule,and priorities. Bi-weekly progress meetings with City staff will be held via teleconference. At the end of each month, RDN will provide a summary report charting the current progress on each task, data needs, current issues that need to be resolved, project schedule updates,and status of action items from the previous report. Table 1. Task 1—Project Management • In-person kick-off meeting Meetrlgs • Progress meetings via teleconference • Data request Meeting agendas and minutes .�RD(V,�Deliverables ,�,�; • • Monthly progress reports and invoices • Respond to data request City Deliverables _..� „ - ■ Attend meetings and provide input M'IDAI 7 1 P a g e Task 2. Five-Year Financial Plan Objective: RON will review City data to develop a 10-year financial plan based on revenue generated from current rates, non-rate revenues, projected expenses, existing and potential debt service payments, and reserve contributions. To project revenue and costs, we use an econometric, data-driven approach that provides a high level of accuracy and reliability for the City's financial plan. Task 2.1. Growth/Revenue Analysis RDN will conduct detailed growth projections to ensure the City's revenue forecast is accurate. Sewer flow is influenced by price signals, high-efficiency technologies, drought mandates, and conservation programs and we will include an analysis of each in our analysis. We will also identify any changes to other revenues such as miscellaneous charges, property taxes, and investment income. Task 2,2. Operation and Maintenance Expenses Using the City's budgetary documents and audited financial reports, we will project operating and maintenance (O&M) expenses using reasonable inflationary factors for relevant itemized expenses based on reliable published sources or City's historical data. We also incorporate any known changes to personnel, level of service, or projected growth. Task 2.3. Capital Improvement Funding The City's new Master Plan will be complete in 2023. RDN will review the City's capital projects plan and explore financing options(reserves,debt proceeds,grants,and PAYGO)based on the timing of scheduled repairs and replacements and debt service requirements. in consultation with the City,we will create an optimal capital project plan,ensuring the City has sufficient funding to maintain and replace pipes,pump stations,and other assets while mitigating rate impacts to customers. Task 2.4. Reserve Funding RDN will work with City staff to understand future reserve targets and develop an implementation plan that maintains recommended balances that are consistent with the City's future financial goals, risk tolerance, and capital improvement projects. Task 2.5. Revenue Requirements Total revenue requirements determined through the cash flow analysis will be offset by other sources of revenue such as property taxes,investment earnings,rental income,and other water service charges. Proposed revenue adjustments to meet the revenue requirements will also meet the required debt service coverage ratio. The objective is to achieve a healthy cash flow mechanism for the next five years while keeping rates affordable. Table 2. Task 2.10-Year Financial Plan Deliverables 4Y3 L.i } F Meetings • Progress meetings via GoToMeeting • Demand projection summary - RDN`Deltverables - • Draft financial planning model City Deliverables . ■ Financial information and input arm 8jPage Task 3. Cost of Service Analysis Objective:RDN will perform a cost of service analysis and allocate costs to customers commensurate with their service requirements. We will evaluate existing customer classes and recommend necessary changes. The cost of service analysis will ensure that proposed rates are in compliance with Proposition 218 and that established rates adequately recover the costs to provide safe and reliable service to the City's customers. We will employ methodologies approved by the WEF Manual 27 to ensure the analysis meets industry standards. Task 3.1.. Review Customer Classes RDN will evaluate City customer classifications and recommend any necessary changes. Assigning costs to the correct class of customers based on their service requirements is critical to designing Proposition 218-compliant rates. We will explore alternative customer class definitions to best align with the City's goals. Task 3.2. Allocation of Costs to Cost Causative Components The previous Sanitary Sewer study identified four major cost components of the City's system:customer accounts, flow, biochemical oxygen demand (BOD), and total suspended solids (TSS). RDN will review the City's expenses and allocate the costs to each of the four components. Because the City only operates a collection system,the vast majority of costs will be allocated to the flow component. However, some costs will be allocated to the strength components since the concentration of BOD and TSS will affect the system's maintenance costs. Task 3.3. Unit Cost of Service Based on the cost allocations determined in Task 3.2, RDN will calculate the total system units of service associated with each cost component. We will then estimate the total system unit costs of service for each function. Task 3.4. Cost Allocation to Customer Classes As a final step of the cost of service analysis, the unit costs are used to allocate the costs back to each customer class commensurate with their service requirements.This analysis permits the City to adhere to the general principle of cost proportionality, under which the rates paid by customer classes are directly proportional to the costs each class imposes on the City as a whole. Table 3. Task 3.-Cost of Service Analysis Deliverables Meetings �, Progress meetings via teleconference CIA RDN.Deliverables ( • Cost of service analysis in Excel '4: City"Deliverables -1s • Cost of service analysis feedback ' !tIDN 9I Page Task 4. Rate Design Objective:RDN will design sanitary sewer rates that follow cost of service ratemaking principles as outlined in the WEF Manual 27. We will review the City's current rate structure and provide recommendations to ensure revenue adequacy while maintaining rate affordability. Recommended rates will have a clear connection between the costs and pricing to ensure compliance with all legal requirements. Task 4.1. Evaluate the Current Rate Structures and Identify Rate Alternatives We will perform a comprehensive review of the City's current rate structures to assess the advantages and disadvantages of the existing rates.The City's current structure consists of five user categories:single family residences, multi-family residences, commercial EDUs, high school EDUs, and grade school attendance. We will evaluate alternative structures that might be appropriate for the City, including options based on commodity rates and pressure zones. In consultation with the City, RDN will assess any additional administrative costs associated with alternative rate structures such as the purchase of new billing software and staff training. Task 4.2. DeveIop Recommended Rates Based on the evaluation of the different rate structure alternatives, RDN will recommend the rate structure that optimizes revenue to meet the City's goals. Rate recommendations will be based upon the updated cost of service analysis, which may include adjustments to customer class designations. The recommended rates will be easy to understand and administer, provide revenue adequacy,and comply with Proposition 218. RDN's final recommendation will fund planned capital improvement projects, be supported by statistical/econometric analyses, data, plans, and comparative examples, and be in full compliance with all legal requirements including Propositions 218.Any review,evaluation,or conclusion regarding the legality of the rate structures will be performed in cooperation with City staff and City legal counsel,as appropriate. Task 4.3. Rate Comparison Survey We will prepare a rate comparison survey of at least five comparable agencies to benchmark the City's current and proposed sewer rates. For instance, surveyed agencies may include the City of Santa Ana, Orange County Sanitation District, East Orange County Water District, Costa Mesa Sanitary District, and Irvine Ranch Water District. We will coordinate with City staff to finalize a list of agencies to include in the survey. The survey results will be added to the administrative report as well as to the meeting presentations if requested by the City. Table 4. Task 4—Rate Design Deliverables Meetings ' • Progress meetings via teleconference • Draft rate model in MS Excel �rRDN Deliverables 1, ■ Rate comparison survey Ctty Deliverables s • Policy goals and objectives for rates Rate feedback ��>4DN 10l Page Task 5. Reports and Model Objective:RDN will provide a Microsoft Excel model for the rate study and train City staff to adjust future inputs for future years. Feedback from the City's staff and Council will be incorporated into the final report, which will be presented to the City Board. Task 5.1. Rate Model The model will be developed in an easy-to-use Microsoft Excel format designed to allow City staff to conduct sensitivity scenarios by testing various assumptions through an interactive dashboard. Factors that may be adjusted in the rate model include staff levels and salaries, operating expense levels, CIP spending, and capital equipment funding. The model will be introduced to City staff early in the study process. We will add worksheets gradually as we perform key analyses through the study process and ask for the City's review. By the time the study is complete, City staff will be fully familiarized with the model and be able to use the model to make data-driven decisions.Any changes to the underlying model will appear instantly in a dashboard for quick executive evaluation. Task 5.2. Rate Study Reports The Draft report will contain an overview, study objectives, assumptions, regulatory requirements, and methodologies. It will discuss short-and long-term financial planning, capital planning, cost of services, rate-setting analysis, bill impacts, and comparison surveys. Key outputs of data, analysis, and rationale will be visualized in the reports using R ggplot2. The visualizations provided in the reports will be an effective tool to communicate conclusions to the City Board,customers, and other stakeholders. We will present the first draft to City staff and solicit feedback to ensure the direction and progress of the study are exceeding City expectations. The second draft will receive initial feedback from City staff before being reviewed by the City Council. Feedback from each review session will be incorporated into the draft report before the next review session. We will incorporate City feedback into the final report and clearly demonstrate the nexus between costs and recommended rates in simple terms to fulfill Proposition 218 reporting requirements. The Final Report will be delivered in PDF and MS Word and will be presented at a City Council Meeting. Table 5, Task 5—Reports and Model Deliverables ;:A-- ' i';;s` • Progress meetings via teleconference Meetings � LS' b �L; • Final study report presentation • Final Rate model in MS Excel RDN Deliverables z x • Draft and final reports in MS Word and PDF formats r City Deliverables • Comments,responses,and recommendations to draft report ! Page Task 6. Public Outreach/Meetings Objective:RDN will facilitate five rate workshops to explain proposed rates and their justification and to build support for the overall study goals. RDN's Proposition 218 support will include Proposition 218 notice design and presentations that effectively communicate the City's message to customers. Task 6.1. Rate Workshops Following the completion of the rate model, RDN will hold two rate workshops with City staff and City Council to develop different rate scenarios. Meetings classified as workshops include: presentations to the Public Works Commission and the Finance Commission, City Council Study Session, and City Council meeting to adopt the rate resolution. RDN will present the interim proposed rates and discuss the benefits and challenges associated with each proposed rate alternative, demonstrated through the rate models.Staff recommendations will be incorporated into the analyses prior to presenting results to the Council. Upon incorporating City staff comments to rates, RDN will present the results of the study at a public outreach meeting. The presentation will discuss the proposed financial plans, proposed rate and fee structures, along with the resulting customer impact analysis. Any public feedback will be incorporated into the final models and reports. Task 6.2. Proposition 218 Notice and Informational Material We will work with City staff and legal counsel to prepare a Proposition 218 notice within the 45-day noticing period.The notice will outline the proposed rate changes,the reasons for the changes, and the right for customers to challenge the rates. If requested, RDN will also develop a brochure or fact sheet to accompany the Proposition 218 notice to help share the story and value of the City's sewer service. It is our understanding that the City will print and mail the notice and other materials. Task 6.3. Proposition 218 Hearing We will attend the Proposition 218 public hearing to present the results of the study and answer questions from the City Council and public. RDN uses clear, concise language and visual messaging to clearly communicate why the rate study process is necessary and how the recommended rate structure was selected.We will provide a draft presentation for City review and incorporate any feedback into the final presentation. Table 6.Task 6—Rate Workshops/Public Hearing Deliverables ,� axri ti • Two rate workshops with staff/council glicMesetmgs 1 _4 • Proposition 218 Public Hearing , • Draft and final Hearing presentations T4 eam RDN Deliverables x - - +x • Proposition 218 Hearing Notice ,; -k 44;:4. • Comments and recommendations to draft presentation District Deliverables • Mailing Proposition 218 notices and information material l4DN 12 ! Page PROJECT SCHEDULE • Figure 2 presents a preliminary schedule for delivering a final report of the City's study by February 2024 and a tentative Proposition 218 hearing in March, 2024.The schedule assumes timely kick-off, City data availability,feedback, and availability for meetings.The final schedule will be discussed and agreed upon at the Kickoff Meeting. Figure 1.Preliminary Project Schedule V an tary ewer ,51§ udy 14 23-4 ug 23 Sep 23, Oct23 ,Nov 23l ec?3�1an 24 Feb 2t Mar'24 Ta sk 1.Project Management/Meetings ement Meet inB s _.. .. .... $ 5' 4C tF` I Task 2.5-Year Financial Plan N Tas k of Se rvice ice Ana lysis sis is(ai 141: Task 4.Rate Design 1� Task S.Reports and Model ' Task b.Public Outreach/Meetings .Y • •• Kickoff Meeting Rate Workshop ' Public Meeting 40, Draft Report Final Report/Rate Model Proposition 218 Notice Rate Implementation/Hearing EIDN 13IPage EXHIBIT "B" Payment Schedule (Hourly Payment) A. Hourly Rate CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule: SEE ATTACHED EXHIBIT B B. Travel. Charges for time during travel are not reimbursable C. Billing 1. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month's bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A copy of memoranda, letters, reports, calculations and other documentation prepared by CONSULTANT may be required to 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 monthly payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) 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 E) 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. 1 Exhibit B 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. • Exhibit B EXHIBIT B ?:5 a 5�3;t'..+• xs k 1%, !. 4, .7 ., s_ _§d'k" .' 1.0 h "`s yr;,_` Yea : *-"Y ¢. w F FEE.. R44PoS,AL z, Y=i x � ,z .>. t C..4.' 2'+ ,,,.1.,',t�. 4,, i,,,I,;„,. ,t.s z ZA''a , t".L i..... ':.. r,,.—„,..„.:7.: ..: r.„-- ....,.'..-, ha. r:,. ."c•..._... .. ,:X.: The tables below present RDN's cost proposal and compensation schedule,respectively. Our not-to-exceed time and materials proposal to provide professional consulting services to conduct a Sanitary Sewer Fee Study for the City of Huntington Beach, including other direct costs and travel expenses, is$35,960. Table 7.Fee Proposal � 7,xRobert D'�Niehaus, *; k m ;-�k e d m€i ,ril'x�,.�SP f",�-�$}�'w 4. r."�. k y Z.€'sc ,',,,,�.� r "r y's.. "e g'-< .w5`t` .� r`'��u �w`17jM'i �4.. Total a �tai F»?• 5 ,,i,*u N " *- .¢,, TaskStw... r f,k tt Princi I.g..a Sen19):',;..ao eJeCt q'5soC. Yr Hours Cost-. ' k i.0,.., .7....; .'Qvt;' .« -=R;.,A,, ,. -e 'V t -`�'_t'.:,v:r--. g A»aiy$t ,.'Manager ,A�ns�iy$,t . Task 1.Project Management/Meetings Z ] 16 10, 29 $5 560 Task 2.5-Year Financial Plan - 2 _ 12 ; �0 34 $5,840 Task 3.Cost of Service Analysis - 2 10 ; 8 : 20 $3,640 Task4.Rate Design 3 4 14 . 10 31 • $6,140 Task 5.Report and Model - 4 18 . 20 • 42 $7,490• :. Task 6.Public Outreach/Meetings 3 2 : 16 8 ; 29 $5,800. Estimated Direct Expenses ; $1,500; Total Hours 8 . 15 86 76 185 Hourly Rate $320 $220 $200 $150: :,,� t"�' ', �� �*'" ,k�x;x �,� ��'�,s�� ��, c � _... Total Pro ectCosts ;�u',r n k , $ , .• ..$3 300, $17,20U: „•.°.$11400 $35 960 Table 8.Compensation Schedule_ ____.____. __ ._. _._.___._.__� _ .__ ._�_ ___ _..____._ ?, 4l d Y t,, 5 �'t'd b '.-i:ii-ri l �`..1 d"'S""� it yy z - ,,i , Analyst .. ,ter , fTuabor Categorry .- ourly Rate;: :..lg.,,<e'`�4,.k.. .. N1 h.,ss Te?s,.r...-k.A ,:,—A,t.w'Ne1;!!'d:r r .^,n b>.: ya....,, ,•,..••-• .-^. •:. Robert Niehaus, Ph.D. Principal $320 Anthony Elowsky, M.A. Project Manager $200 Ichiko Kido, M.B.A. Senior Analyst $220 Zachary Van Dinther, B.S. Associate Analyst $150 Bjorn Kallerud, M.Sc. ,Associate Analyst $150 ZEill DN 191Page /(7.K. ® r♦ CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDD/YYYY)08/10/2023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. 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). PRODUCER CONTACT NAME: Aon Private Risk Mgmt - Phoenix PHONE Doreen Adelman FAX 2555 E Camelback Rd IA/C,No.Ext): (951) 772-8720 (A/C.NoI: E-MAIL doreen.adelmaneaon.com Phoenix AZ 85016 ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC p INSURERA:Travelers Property Casualty Co 20508 INSURED INSURER B:Travelers Property Casualty Co 42390 Robert D. Niehaus, Inc INSURER C:Travelers Property Casualty Co 35378 140 E. Carrillo Street INSURER O:Houston Casualty Company 42374 Santa Barbara CA 93101 INSURER E:Lloyd's of London AA112 INSURER F: Travelers Property Casualty Co 524126 COVERAGES JM CERTIFICATE NUMBER:cert ID 47221 (50) REVISION NUMBER: THIS IS TO CERTIFY THAT 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 BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSD NW POLICY NUMBER IMMIDD/YYYY) (MM/DDIYYYY) A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 AMAGE TOCLAIMS-MADE X OCCUR Y Y 680-0X748952-23-42 09/01/2023 09/01/2024 PREMSES EaENTED occurrence) S 300,000 MED EXP(Any one person) S 5,000 PERSONAL 8,ADV INJURY $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE S 4,000,000 JXPOLICY PRO- POLICY LOC PRODUCTS-COMP/OP AGG $ 4,000,000 OTHER: $ AUTOMOBILE LJABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident) A ANY AUTO Y Y 680-0X748952-23-42 09/01/2023 09/01/2024 BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ X AUTOS ONLY X AUTOS ONLY (Per accident) S C UMBRELLA LIAB X OCCUR Y Y CUP-0X751286-23-42 09/01/2023 09/01/2024 EACH OCCURRENCE $ 5,000,000 X EXCESS LIAB CLAIMS-MADE AGGREGATE $ 5,000,000 DEO RETENTIONS S WORKERS COMPENSATION B AND EMPLOYERS'LIABILITY Y UB-0X750517-23-42-0 09/01/2023 09/01/2024 X PERH Y STATUTE ER _ ANYPROPRIETOR/PARTNERIEXECUTIVE I NI NIA E.L.EACH ACCIDENT S 1,000,000 OFFICER/MEMBEREXCLUDED? I I (Mandatory In NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 It yes,desuibe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 1,000,000 F EPLI 652145186 09/01/2023 09/01/2024 EPLI Aggregate Limit S 4,000,000 A Property - Commercial 680-0X748952-23-42 09/01/2023 09/01/2024 Blanket Bus Per s 212,242 Prop - Ded $1,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES(ACORD 101,Additional Remarks Schedule,may be attached If more space Is required) Certificate Holder is named as Additional Insured as respects all operations of the named insured per written contract on file. Includes Blanket Waiver of Subrogation and Blanket Primaryg� Wording endorsement. Cancellation is 30 days except for non-payment which is 10 days. EIN OI/iint the FORM General Liability, Auto and Work Comp. v BY: MICHAEL E. GATES CIA—#( CITY ATTORNEY CERTIFICATE HOLDER CANCELLATION CITY OF HUNTINGTON BEACH mRMinsuranceesurfcity-hb.org SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Huntington Beach 2000 Main St AUTHORIZED REPRESENTATIVE RM ratan AW 2444mat Huntington Beach CA 92648 Tacualfm.lie. I ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD Page 1 of 2 CERTIFICATE COVERAGES OVERFLOW DATE(MM/DD/YYYY) 08/10/2023 PRODUCER INSURED Aon Private Risk Mgmt - Phoenix Robert D. Niehaus, Inc 2555 Et Camelback Rd 140 S. Carrillo Street Phoenix AZ 85016 Santa Barbara CA 93101 CONTACT NAME: PHONE(A/C,No,Ext): PHONE(A/C,No,Ext): Doreen Adelman (951) 772-8720 ADDITIONAL COVERAGES CERTIFICATE NUMBER:Cart ID 47221 REVISION NUMBER: INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS D Cyber/Network Liab a21N0P210314-02 09/01/2023 09/01/2024 Cyber Liability - $ 1,000,000 Limit D Cyber/Network Liab H21NOP210314-02 09/01/2023 09/01/2024 Cyber Liability - $ 2,500 Retention R Errors and Omissions MPL1118304.23 09/22/2023 09/22/2024 Aggregate $ 2,000,000 Certificate Coverages Overflow(11/2010) Page 2 of 2 9/14/23,3:32 PM PlanetBids Vendor Portal Sewer Rate Study 2023-0530 Bid Detail Project Title Sewer Rate Study Invitation # 2023-0530 Bid Posting Date 05/04/2023 3:54 PM (PDT) Project Stage Awarded Bid Due Date 05/30/2023 4:00 PM (PDT) Response Format Electronic Project Type RFP(Request for Proposal) Response Types Response File Type of Award Lump Sum Categories 91063-Public Utilities:Water,Sewer And Gas Maintenance And Repair 91800-Consulting Services 91812-Analytical Studies And Surveys(Consulting) 91849- Finance/Economics Consulting 91855-Geological Consulting And Study 91897-Utilities: Gas,Water, Electric Consulting License Requirements Department Finance Address 2000 Main Street Huntington Beach, California 92648 County Orange Bid Valid Liquidated Damages Estimated Bid Value Start/Delivery Date https://pbsystem.planetbids.com/portal/15340/bo/bo-detail/105464 1/3 9/14/23,3:32 PM PlanetBids Vendor Portal Project Duration Bid Bond Bid Bond 0.00% Payment Bond 0.00% Performance Bond 0.00% Pre-Bid Meeting Information Pre-Bid Meeting No Online Q&A Online Q&A Yes Q&A Deadline 05/17/2023 4:00 PM (PDT) Contact Information Contact Info Cody Hernandez 714-960-8878 cody.hernandez@surfcity-hb.org Bids to Owner's Agent Description Scope of Services The City of Huntington Beach (City) is seeking proposals from qualified consultants to provide services for the preparation of a comprehensive sanitary sewer fee study, including recommendations for the City's sewer rate structure. The awarded Consultant will be responsible for preparing the City's Sewer Rate Study.The study must include a comprehensive review and analysis of the City's sewer system,financials, and rate structure.The scope of work shall include, but not limited to: • Develop industry standard rate study goals and objectives • Review current O&M services,capital improvement projects,and existing assets • Perform due diligence and policy review https://pbsystem.planetbids.com/portal/15340/bo/bo-detail/105464 2/3 9/14/23,3:32 PM PlanetBids Vendor Portal • Hold in-person meetings and web conferences • Determine revenue requirements to sufficiently fund O&M activities and capital needs • Evaluate current financial condition, projected revenues,expenses,and debt service • Evaluate and provide recommendations to the City's Sewer Service Fund Reserve Policy • Identify key issues that may significantly affect the implementation of new sewer rates • Evaluate the City's Sewer Master Plan and proposed Capital Improvement Program (CIP) • Develop a 5-year financial plan,exhibits,graphs/tables,and financial model • Perform a cost of service analysis, include comparison with other municipal agency rates • Design rate structure options for consideration with decision matrix and/or tables • Provide draft and final Sewer Rate Study Report compliant with Prop 218 requirements • Conduct rate workshop with City of Huntington Beach Public Works Commission • Conduct rate workshop with City of Huntington Beach City Council • Develop public outreach materials and documents for public hearing •Assist City staff to present and answer questions at public hearing,tentative March 2024 • Develop a communication plan and public outreach strategy •Stakeholder engagement and public outreach assistance • Quality assurance and quality control • Develop references/appendices citing sources of authority,as applicable • Create and regularly update project schedule on a monthly basis(at a minimum) The Consultant must demonstrate in its proposal that it has the necessary resources and ability to undertake the entire work program within a defined schedule and budget limit. Other Details Notes Special Notices Local Programs&Policies https://pbsystem.planetbids.com/portal/15340/bo/bo-detail/105464 3/3 9/14/23,3:44 PM PlanetBids Vendor Portal Sewer Rate Study 2023-0530 Showing 3 Bid Results Vendor Type Bid Amount Rank Responsi Black&Veatch Management Consulting, $0.0000 0 Yes LLC 11401 Lamar Avenue Overland Park, Kansas 66211 Contact: Black&Veatch Management Consulting, LLC Phone:913-458-3579 Raftelis Financial Consultants, Inc. $0.0000 0 Yes 445 S. Figueroa Street Suite 1925 Los Angeles, California 90071 Contact:Steve Gagnon Phone:213-262-9308 Robert D. Niehaus, Inc. $0.0000 0 Yes 140 E Carrillo St Santa Barbara,California 93101 Contact:Jack Lyon Phone:805-618-1356 https://pbsystem.planetbids.com/portal/15340/bo/bo-detail/105464#bidResults 1/1