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Home My WebLink AboutCC 6 WTR SERVICE RATE 02-01-88CONSENT CALENDAR TO: WILLIAM HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/WATER DIVISION SUBJECT: WATER SERVICE RATE ANALYSIS RECOMMENDATION: That the Tustin city Council of their meeting of February 1, 1988 authorize the execution of a Professional Services Agreement with the firm IWA Engineers. BACKGROUND: over the past several years, the-.City has been negotiating with the Irvine Ranch Water District (IRWD) with respect to exercising a 1973 Agreement between IRWD, The Irvine Company and the City which would ~ovide the City the opportunity to become the retail water purveyor .thin a certain portion of the IRWD service area. The service area in question lies generally easterly of Browning Avenue and the abandoned A.T. & S.F. Railroad right-of-way and between Edinger Avenue and the northerly City limits with East Tustin. This area is also defined as Parcel 1 (below the I-5 freeway) and Parcel 2 (above the I-5 freeway). Parcel 2 is the area currently being considered by the City for operation as a retail water purveyor. The 1973 Agreement as delineates IRWDas the water supply wholesaler to the City. A ....... ~ations have' proceeded with City staff and IRWD it has become apparent that there may be a need for a dual water rate to the ' 'n each of the two separate water service areas (IRWD consumers wlthl --- ' 'ce area · In order to Parcel.No. 2 and the current Tu~t~n ~r ~~ within)the n~w ~rcel ~ determine what the rates would_ = alvsis evaluation be . ' u est~n a rate un ~ . service area, staff_ ~s s_gg ..... ~A~ ~ ~h~ ' v's existing rate. completed which could then De comp~£~u ~ .... C~t~ DISCUSSIOn: Proposals were solicited from four consultants to perform said study as follows: ...... $ 4,800.00 IWA Engineers, Fountain Valley .... _ .... 5,000.00 S.S.J.. Engineering, Mission viejo .... _ _ 15,000.00 James M. Montgomery, Pasadena ........ ~oyle Engineering, Inc. declined to submit a proposal. WATER SERVICE RATE ANALYSIS JANUARY 25, 1988 PAGE 2 All consultants indicated that they could complete the rate analysis within the requested time period of three to four weeks. Funding for said analysis can be accommodated within the current ,87-'88 Water Service Budget. A. Professional Service~ Contract ~s .~tac~d_ ~?~ execution by the City Council ~f they desire to procee~ w~tn sal~ wa=er Rate Analysis. Bob Ledendecker .~_epartment of Public Works/City Engineer ~:bf PROFESSIONAJ_ SERVICES AGREEMENT THIS AGREEMENT, made and entered into this day of , 1988 by and between CITY OF TUSTIN, a municipal corporation (hereinafter referred to as "City"); and 1WA ENGINEERS, 17390 Brookhurst Street, Suite 100, Fountain Valley, California 92708 {hereinafter called "Consultant"). WITNESSETH: WHEREAS, City desires to employ Consultant to furnish the necessary · consulting services for providing an analysis of the water service rates within IRWD service area Parcel No. 2 and the existing Tustin water service rate hereinafter referred to as "Project"; and WHEREAS, Consultant is qualified to provide the necessary services in connection with said Project and has agreed to provide the necessary water rate analysis services; and WHEREAS, Consultant has submitted to City a letter proposal dated January 19, 1988, a copy of which is attached hereto marked Exhibit "A", and is by this reference incorporated herein as though set forth in full herein ("the Proposal"). NOW, THEREFORE, City agrees to employ and does hereby employ Consultant to provide for consulting services For the Project, and City and Consultant for the consideration hereinafter set forth agree as follows: Section 1: Scope of Consultant's Services. Consultant agrees to furnish to the City consulting services for the Pr~oject. These services shall include all of the .~ater rate analysis services to be performed as directed by the City Engineer. Section 2: Time for Comp. letion. It is hereby understood and mutually agreed that the time for completion of the work to be performed by Consultant is an essential condition of this Agreement. Consultant agrees that it shall prosecute regularly and diligently the work of this Agreement according to reasof)ahle schedules established by City for the various items as described. -1- Consultant shall not be accountable for delays in the progress of its work caused by any condition beyond its control and without the fault or negligence of Consultant. Any dela~ys shall not entitle Consultant to any additional compensation under any circumstances, regardless of the party responsible for the delay. Section 3: Compensation. The compensation to be paid under this Agreement shall be as set forth in Exh'ibit."A". Monthly payments for work completed will be paid as the work progresses. Section 4: Miscellaneous Provisions: A. City and Consultant further agree to the following conditions: (1) City, by notifying Consultant in writing, shall have the right to terminate any or all of %he services and work covered by this Agreement at any time. (2) Consultant agrees that it shall proceed immediately and diligently to perform the services provided for in this Agreement upon receipt of notic~ from City to proceed therewith. (3) The terms and provisions of this Agreement shall extend to and be binding upon and inure to the benefit of heirs, executors, administrators, successors an~ assigns of the respective parties thereto. (4) Consultant shall perform the services hereunder as an independent contractor and under no circumstances or conditions shall Consultant and any of its agents, servants and employees, be considered as an employee or agent of the City. (5) Consultant shall perform all services required under this Agreement in a careful, diligent, professional manner, and shall be responsible for all errors and om.issions for services performed by Consultant under the terms of this Agreement. Consultant, as a material part of the consideration of this -2- - . Agreement, hereby waives, on its behalf and on behalf ,of all others claiming 'ough Consultant, all claims and demands against City, its agents, employees, successors and assigns, for all loss, damage, injury, sickness or death of any person resulting from the negligent performance of this Agreement, and agrees to indemnify, defend and hold City, its agents, employees, successors and assigns, harmless from any loss, damage, injury, sickness, death, or other claim made by other persons and from all costs, expenses and charges arising therefrom. Consultant shall maintain in full force and effect during the term of this Agreement, its existing policies of insurance for which certificates of insurance have heretofore be~n delivered to City. (6) Consultant shall carry and pay for such compensation insurance as. is necessary to fully protect Consultant and his employees under California Worker's Compensation Insurance and safeY, y laws, to relieve City from all respbnsibility under said laws in connection with the performance of this ,,greement, and upon the execution of this Agreement, to file with City a certi fi cate certifying to. sa'id protection. · (7) Consultant certifies that there shall be no discrimination against any employee who is employed in the work covered by this Agreement, or against any application for such emp.loyment, because of race, religion, col or, sex, or national origin, including but not limited to, the following: (i) Employment, upgrading, demotion or transfer, recruitment or recruitment advertising, lay-off or termination, rates of pay or other forms of compensation, and selection for training, including appren'ticeship. (8) Consultant shall provide City monthly with a detailed itemiza- tion of all work performed, and the fees accrued thereon, in complete and suffi- cient detail, to fully apprise City thereof. -3- IN WITNESS WHEREOF, this Agreement was executed by the parties on the day and year first above written. CITY OF TUSTIN, a municipal corporation By Mayor ATTEST: City Clerk APPROVED AS TO FORM: · City -Attorney IWA ENGINEERS By By IWA ENGINEERS 17390 Brookhurst Street, Suite 100 Fountain Valley, CA 92708 · (714) 968-1221 January 19, 1988 Mr. Bob Ledendecker Director of Public Works/City Engineer city of Tustin 300 Centennial Way Tustin, CA 92680 Subject: Tustin Water Service Rate Analysis Proposal Dear Bob: IWA Engineers is pleased to submit a proposal for the referenced study. Our proposal is based on the City's Request for Proposal, discussions with City staff, and our understanding of the study objectives. STUDY OBJECTIVES The objective of the rate analysis is to p~ovide the City with an engineering evaluation of the existing City water rate as com- pared to the wholgsale rate to be charged by Irvine Ranch Water District (IRWD), and to develop an equitable rate structure for the service area.within Parcel 2. It is critical the City have adequate back-u~ information to substantiate its recommended policy. '~ SCOPE OF WORK The tasks to be completed as part of the rate analysis for the City of Tustin are as follows: '1. Review Existinq Reports and Data IWA Engineers will review the 1982 rate study, the IRWD wholesale rate schedule, the current City rate schedule,, and additional data on the water rates which have been develoPed to date. 2. Evaluate Existing Rate System We have already received a copy of the 1982 rate schedule and have completed a preliminary review of its recommenda- tions. We will also analyze all information on the existing City water rates. Mr. Bob Ledendecker City of Tustin January 19. 1988 Page 2 · perform Engineering and Economic Value Study for Parcel 2 Water Service Based on the information and data obtained and developed in Tasks 1 and 2, two alternatives will be analyzed. These al- ternatives are as follows: Establishing one uniform rate throughout the entire City service, including Parcel 2. Establishing a separate rate schedule for the existing service area and the Parcel 2 service area. A meeting will be held with the City during this phase to discuss preliminary findings and conclusions. 4. Preparation of Final Report A final report shall be prepared which includes all major results, conclusions, findings and recommendations of the study. FEE ES'rIMATE We pre.pose to complete this rate analysis for a fi):ed fee of $4,800-.00. This fee includes all labor and direct costs, includ- ing five (5) copies of the final report. This fee doas not ine clude services for presentation to the City Council. SCHEDULE Upon notice to proceed, IWA Engineers will complete the report within three to four weeks. If you have any questions on the proposed scope or fee, please call. We appreciate this opportunity to provide a pro9esal, and look forward to working with you on this study. Very truly yours, IWA ENGINEERS Steven R. Andrews, P.E. Principal SRA:pb