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AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT FOR
WATER & SEWER COST OF SERVICE STUDY UPDATE
BY AND BETWEEN THE CITY OF ARCADIA
AND CAROLLO ENGINEERS, INC.
This Amendment No. 1 ("Amendment No. 1") is hereby entered into this 3 l "-
day of
AtA6lit5. ' , 2020 by and between the City of Arcadia, a municipal corporation of the
State of California, and Carollo Engineers, Inc., a Delaware Corporation, with respect to that
certain Professional Services Agreement ("Agreement") between the parties dated August 22,
2019.
The Parties agree as follows:
1. Section 3.1.2 of the Professional Services Agreement, the Term is hereby extended
from August 22, 2020 to December 31, 2020 ("Extended Term").
2. All terms and provisions of the Agreement not amended by this Amendment No. 1 are
hereby reaffirmed.
In witness whereof the Parties have executed this Amendment No. 1 on the date set
forth below.
CITY OF ARCADIA CAROLLO ENGINEERS, INC.
By:
Dominic Lazzaretto
City Manager Title: Senior Vice President
Dated: ��g�.S 31 I 20 Dated: August 12, 2020
By:
ATTEST:
Title: Vice President
Dated: August 13, 2020
i y Clerk
APPROVED AS TO FORM CONCUR:
Stephen P. Deitsch Tom Tait
City Attorney Public Works Services Director
eiiinue,7\c's
CITY OF ARCADIA
ORIGINAL
PROFESSIONAL SERVICES AGREEMENT REGARDING Q 9257
WATER & SEWER COST OF SERVICE STUDY UPDATE
1. PARTIES AND DATE.
This Agreement is made and entered into this I, day of , 2019
by and between the City of Arcadia, a charter city organized under thConstitution and
laws of the State of California with its principal place of business at 240 West
Huntington Drive, Arcadia, California 91066-6021 ("City") and Carollo Engineers, Inc.,
a Delaware Corporation, with its principal place of business at 707 Wilshire Blvd, Suite
3920, Los Angeles, CA 90017 ("Consultant"). City and Consultant are sometimes
individually referred to as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of
certain professional services required by the City on the terms and conditions set forth
in this Agreement. Consultant represents that it is experienced in providing professional
consulting, financial planning, accounting, and utility management services to public
clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for the Water &
Sewer Cost of Service Study Update ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to
furnish to the City all labor, materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately supply the professional financial
planning, accounting, and utility management consulting services necessary for the
Project ("Services"). The Services are more particularly described in Exhibit "A"
attached hereto and incorporated herein by reference. All Services shall be subject to,
and performed in accordance with, this Agreement, the exhibits attached hereto and
incorporated herein by reference, and all applicable local, state and federal laws, rules
and regulations.
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3.1.2 Term. The term of this Agreement shall be for one year from date
of execution, unless earlier terminated as provided herein. Consultant shall complete
the Services within the term of this Agreement, and shall meet any other established
schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates; Independent Contractor.
The Services shall be performed by Consultant or under its supervision. Consultant will
determine the means, methods and details of performing the Services subject to the
requirements of this Agreement. City retains Consultant on an independent contractor
basis and not as an employee. Consultant retains the right to perform similar or
different services for others during the term of this Agreement. Any additional personnel
performing the Services under this Agreement on behalf of Consultant shall also not be
employees of City and shall at all times be under Consultant's exclusive direction and
control. Consultant shall pay all wages, salaries, and other amounts due such
personnel in connection with their performance of Services under this Agreement and
as required by law. Consultant shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes,
income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, City shall respond to Consultant's
submittals in a timely manner. Upon request of City, Consultant shall provide a more
detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the prior written approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City
that certain key personnel will perform and coordinate the Services under this
Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence upon prior written approval
of City. In the event that City and Consultant cannot agree as to the substitution of key
personnel, City shall be entitled to terminate this Agreement for cause. As discussed
below, any personnel who fail or refuse to perform the Services in a manner acceptable
to the City, or who are determined by the City to be uncooperative, incompetent, a
threat to the adequate or timely completion of the Project or a threat to the safety of
persons or property, shall be promptly removed from the Project by the Consultant at
the request of the City. The key personnel for performance of this Agreement are as
follows: Jennifer Ivey, Vice President; Alexander Bugbee, Project Manager.
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3.2.5 City's Representative. The City hereby designates Tom Tait, Public
Works Services Director, or his or her designee, to act as its representative for the
performance of this Agreement ("City's Representative"). City's Representative shall
have the power to act on behalf of the City for all purposes under this Contract.
Consultant shall not accept direction or orders from any person other than the City's
Representative or his or her designee.
3.2.6 Consultant's Representative. Consultant hereby designates
Jennifer Ivey, Vice President, or his or her designee, to act as its representative for the
performance of this Agreement ("Consultant's Representative"). Consultant's
Representative shall have full authority to represent and act on behalf of the Consultant
for all purposes under this Agreement. The Consultant's Representative shall supervise
and direct the Services, using his best skill and attention, and shall be responsible for all
means, methods, techniques, sequences and procedures and for the satisfactory
coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with
City staff in the performance of Services and shall be available to City's staff,
consultants and other staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall
perform all Services under this Agreement in a skillful and competent manner,
consistent with the standards generally recognized as being employed by professionals
in the same discipline in the State of California. Consultant represents and maintains
that it is skilled in the professional calling necessary to perform the Services. Finally,
Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to
perform the Services, including a City Business License, and that such licenses and
approvals shall be maintained throughout the term of this Agreement. As provided for in
the indemnification provisions of this Agreement, Consultant shall perform, at its own
cost and expense and without reimbursement from the City, any services necessary to
correct errors or omissions which are caused by the Consultant's failure to comply with
the standard of care provided for herein. Any employee of the Consultant or its sub-
consultants who is determined by the City to be uncooperative, incompetent, a threat to
the adequate or timely completion of the Project, a threat to the safety of persons or
property, or any employee who fails or refuses to perform the Services in a manner
acceptable to the City, shall be promptly removed from the Project by the Consultant
and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to the City, Consultant shall be solely responsible for all
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costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials,
directors, officers, and employees free and harmless, pursuant to the indemnification
provisions of this Agreement, from any claim or liability arising out of any failure or
alleged failure to comply with such laws, rules or regulations.
3.2.9.1 Immigration Reform and Control Act. Consultant
acknowledges that Consultant, and all subcontractors hired by Consultant to perform
services under this Agreement, are aware of and understand the Immigration Reform
and Control Act ("IRCA"). Consultant is and shall remain in compliance with the IRCA
and shall ensure that any subcontractors hired by Consultant to perform services under
this Agreement are in compliance with the IRCA. In addition, Consultant agrees to
indemnify, defend and hold harmless the City, its directors, officials, officers and
employees, from any liability, damages or causes of action arising out of or relating to
any claims that Consultant's employees, or the employees of any subcontractor hired by
Consultant, are not authorized to work in the United States for Consultant or its
subcontractor and/or any other claims based upon alleged IRCA violations committed
by Consultant or Consultant's subcontractor(s).
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not
commence Work under this Agreement until it has provided evidence satisfactory to the
City that it has secured all insurance required under this section. In addition, Consultant
shall not allow any subcontractor to commence work on any subcontract until it has
provided evidence satisfactory to the City that the subcontractor has secured all
insurance required under this section; provided, however, that in lieu thereof, the
Consultant may provide evidence to the City that all subcontractors are additional
insureds under the Consultant's policies of insurance.
3.2.10.2 Minimum Requirements. Consultant shall, at its
expense, procure and maintain for the duration of the Agreement insurance against
claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the Agreement by the Consultant, its agents,
representatives, employees, subcontractors and volunteers. Consultant shall also
name and obtain insurer's consent to naming City, its directors, officials, officers, and
employees as an additional insured with proof of certificate of insurance that they are an
additional insured. Such insurance shall meet at least the following minimum levels of
coverage:
(A) Minimum Scope of Insurance. Coverage shall be
when commercially available (occurrence based) at least as broad as the latest version
of the following: (1) General Liability: Insurance Services Office Commercial General
Liability coverage for premises and operations, contractual liability, personal injury,
bodily injury, independent contractors, broadform property damage, explosion, collapse,
and underground, products and completed operations; (2) Automobile Liability:
Insurance Services Office Business Auto coverage for any auto owned, leased, hired,
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and borrowed by Consultant or for which Consultant is responsible; and (3) Workers'
Compensation and Employer's Liability: Workers' Compensation insurance as required
by the State of California and Employer's Liability Insurance.
The City, its directors, officials, officers, and employees shall be listed as additional
insured. Any deductibles or self-insured retentions must be declared to and approved
by City and conform to the requirements provided in Section 3.2.10.6 herein.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $1,000,000 combined single limit per
occurrence for bodily injury, personal injury and property damage, with an aggregate
limit of $1,000,000. If Commercial General Liability Insurance or other form with general
aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required
occurrence limit; (2) Automobile Liability: $1,000,000 combined single limit per accident
for bodily injury and property damage; and (3) Workers' Compensation and Employer's
Liability: Workers' Compensation limits as required by the Labor Code of the State of
California. Employer's Liability limits of $1,000,000 per accident for bodily injury or
disease.
3.2.10.3 Professional Liability. INTENTIONALLY OMITTED.
3.2.10.4 Insurance Endorsements. The insurance policies
shall contain the following provisions, or Consultant shall provide endorsements on
forms supplied or approved by the City to add the following provisions to the insurance
policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, and employees shall
be covered as additional insured with respect to liability arising out of Services
operations and for completed operations performed by or on behalf of the Consultant,
including materials, parts or equipment furnished in connection with such work; and (2)
the insurance coverage shall be primary insurance as respects the City, its directors,
officials, officers, and employees, or if excess, shall stand in an unbroken chain of
coverage excess of the Consultant's scheduled underlying coverage. Any insurance or
self-insurance maintained by the City, its directors, officials, officers, employees and
volunteers shall be excess of the Consultant's insurance and shall not be called upon to
contribute with it in any way.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the City, its directors, officials, officers, and
employees shall be covered as additional insureds with respect to the ownership,
operation, maintenance, use, loading or unloading of any auto owned, leased, hired or
borrowed by the Consultant or for which the Consultant is responsible; and (2) the
insurance coverage shall be primary insurance as respects the City, its directors,
officials, officers, and employees, or if excess, shall stand in an unbroken chain of
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coverage excess of the Consultant's scheduled underlying coverage. Any insurance or
self-insurance maintained by the City, its directors, officials, officers, and employees
shall be excess of the Consultant's insurance and shall not be called upon to contribute
with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its
directors, officials, officers, and employees for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be, reduced or
canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested of cancellation, of intended non-renewal or endorsement reduction in limit or
scope of coverage; provided, however, that in the event of cancellation due solely to
non-payment of premium, ten (10) days notice of cancellation for non-payment of
premium may instead be given to the City.; and (B) any failure to comply with reporting
or other provisions of the policies, including breaches of warranties, shall not affect
coverage provided to the City, its directors, officials, officers, and employees.
3.2.10.5 Separation of Insureds; No Special Limitations. All
insurance required by this Section shall contain standard separation of insureds
provisions. In addition, such insurance shall not contain any special limitations on the
scope of protection afforded to the City, its directors, officials, officers, and employees.
3.2.10.6 Deductibles and Self-Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the City.
Consultant shall guarantee that, at the option of the City, either: (1) the insurer shall
reduce or eliminate such deductibles or self-insured retentions as respects the City, its
directors, officials, officers, and employees; or (2) the Consultant shall procure a bond
guaranteeing payment of losses and related investigation costs, claims and
administrative and defense expenses.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed
with insurers with a current A.M. Best's rating no less than A:VII, admitted or approved
to do business in California, and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City
with complete and accurate copies of current certificates of insurance and
endorsements effecting coverage required by this Agreement on forms satisfactory to
the City. The certificates and endorsements for each insurance policy shall be signed
by a person authorized by that insurer to bind coverage on its behalf, and shall be on
forms provided by the City if requested. Copies of all certificates and endorsements
must be received and approved by the City before work commences. The City reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
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3.2.10.9 Safety. Consultant shall execute and maintain its
work so as to avoid injury or damage to any person or property. In carrying out its
Services, the Consultant shall at all times be in compliance with all applicable local,
state and federal laws, rules and regulations, and shall exercise all necessary
precautions for the safety of employees appropriate to the nature of the work and the
conditions under which the work is to be performed. Safety precautions as applicable
shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang
planks, confined space procedures, trenching and shoring, equipment and other safety
devices, equipment and wearing apparel as are necessary or lawfully required to
prevent accidents or injuries; and (C) adequate facilities for the proper inspection and
maintenance of all safety measures.
3.2.10.10 Material Breach. Lack of insurance does not negate
Consultant's obligations under this Agreement. Maintenance of proper insurance
coverage is a material element of this Agreement and failure to maintain or renew
coverage or to provide evidence of renewal may be treated by the City as a material
breach of the Agreement.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
reimbursements which receive the City's prior written authorization, for all Services
rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and
incorporated herein by reference. The total compensation shall not exceed SEVENTY-
EIGHT THOUSAND, NINE HUNDRED AND EIGHTY-TWO DOLLARS AND NO
CENTS, ($78,982.00) without written approval of the City Manager. Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and
manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a
monthly itemized statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
subsequent billing periods, as appropriate, through the date of the statement. City
shall, within forty-five (45) days of receiving such statement, review the statement and
pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed
for any expenses unless prior written authorization is obtained from the City.
3.3.4 Extra Work. At any time during the term of this Agreement, City
may request that Consultant perform Extra Work. As used herein, "Extra Work" means
any work which is determined by City to be necessary for the proper completion of the
Project, but which the parties did not reasonably anticipate would be necessary at the
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execution of this Agreement. Consultant shall not perform, nor be compensated for,
Extra Work without prior written authorization from City's Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete
and accurate records with respect to all costs and expenses incurred under this
Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of City during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of
final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof, at least seven (7) days before the effective date of such
termination. Upon termination, Consultant shall be compensated only for those services
which have been adequately rendered to City, and Consultant shall be entitled to no
further compensation. Consultant may not terminate this Agreement except for cause.
A termination without cause by City shall not act as or be deemed a waiver of any
potential known or unknown City claims associated with Consultant's performance prior
to the date of termination.
3.5.1.2 Effect of Termination. If this Agreement is terminated
as provided herein, City may require Consultant to provide all finished or unfinished
Documents and Data and other information of any kind prepared by Consultant in
connection with the performance of Services under this Agreement. Consultant shall be
required to provide such document and other information within fifteen (15) days of the
request.
3.5.1.3 Additional Services. In the event this Agreement is
terminated in whole or in part as provided herein, City may procure, upon such terms
and in such manner as it may determine appropriate, services similar to those
terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
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Consultant:
Carollo Engineers, Inc.
707 Wilshire Boulevard, Suite 3920
Los Angeles, California 90017
Attn: Alexander Bugbee, Project Manager
City:
City of Arcadia
11800 Goldring Road
Arcadia, CA 91006
Attn: Jacquelyn Mercado, Management Analyst
Such notice shall be deemed made when personally delivered or when mailed, forty-
eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and
addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data; Licensing of Intellectual Property.
This Agreement creates a non-exclusive and perpetual license for City to copy, use,
modify, reuse, or sublicense any and all copyrights, designs, and other intellectual
property embodied in plans, specifications, studies, drawings, estimates, and other
documents or works of authorship fixed in any tangible medium of expression, including
but not limited to, physical drawings or data magnetically or otherwise recorded on
computer diskettes, which are prepared or caused to be prepared by Consultant under
this Agreement ("Documents & Data"). Consultant shall require all subcontractors to
agree in writing that City is granted a non-exclusive and perpetual license for any
Documents & Data the subcontractor prepares under this Agreement. Consultant
represents and warrants that Consultant has the legal right to license any and all
Documents & Data. Consultant makes no such representation and warranty in regard
to Documents & Data which were prepared by design professionals other than
Consultant or provided to Consultant by the City. City shall not be limited in any way in
its use of the Documents and Data at any time, provided that any such use not within
the purposes intended by this Agreement shall be at City's sole risk.
3.5.3.2 Confidentiality. Except as otherwise required by
California law, all ideas, memoranda, specifications, plans, procedures, drawings,
descriptions, computer program data, input record data, written information, and other
Documents and Data either created by or provided to Consultant in connection with the
performance of this Agreement shall be held confidential by Consultant. Such materials
shall not, without the prior written consent of City, be used by Consultant for any
purposes other than the performance of the Services. Nor shall such materials be
disclosed to any person or entity not connected with the performance of the Services or
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the Project. Nothing furnished to Consultant which is otherwise known to Consultant or
is generally known, or has become known, to the related industry shall be deemed
confidential. Consultant shall not use City's name or insignia, photographs of the
Project, or any publicity pertaining to the Services or the Project in any magazine, trade
paper, newspaper, television or radio production or other similar medium without the
prior written consent of City.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with
one another, and shall take any additional acts or sign any additional documents as
may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Indemnification.
3.5.5.1 To the fullest extent permitted by law, Consultant shall
defend, indemnify and hold the City, its officials, officers, and employees free and
harmless from any and all claims, demands, causes of action, costs, expenses, liability,
loss, damage or injury, in law or equity, to property or persons, including wrongful death,
in any manner arising out of or incident to any alleged acts, omissions or willful
misconduct of Consultant, its officials, officers, employees, agents, consultants and
contractors arising out of or in connection with the performance of the Services, the
Project or this Agreement, including without limitation the payment of all consequential
damages and attorney's fees and other related costs and expenses. Notwithstanding
the foregoing, to the extent Consultant's Services are subject to Civil Code Section
2782.8, the above indemnity shall be limited, to the extent required by Civil Code
Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence,
recklessness, or willful misconduct of the Consultant. Consultant shall defend with
Legal Counsel of City's choosing, at Consultant's own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against City, its directors, officials, officers, and employees.
Consultant shall pay and satisfy any judgment, award or decree that may be rendered
against City or its directors, officials, officers, and employees, in any such suit, action or
other legal proceeding arising from Consultant's performance of the Services, the
Project or this Agreement; except to the extent that liability is caused by the active
negligence or willful misconduct by the City or its directors, officials, officers, and
employees. Consultant shall reimburse City and its directors, officials, officers, and
employees, for any and all legal expenses and costs incurred by each of them in
connection therewith or in enforcing the indemnity herein provided. Consultant's
obligation to indemnify shall not be restricted to insurance proceeds, if any, received by
the City, its directors, officials, officers, and employees, and shall take effect
immediately upon execution of this Agreement.
3.5.5.2 The duty to defend and to hold harmless, as set forth
above, shall include the duty to defend as established by Section 2778 of the California
Civil Code, and the duty to defend shall arise upon the making of any claim or demand
against the City, its respective officials, officers, agents, employees and representatives,
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notwithstanding that no adjudication of the underlying facts has occurred, and whether
or not Consultant has been named in the claim or lawsuit.
3.5.6 Entire Agreement. This Agreement contains the entire Agreement
of the Parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be modified by
a writing signed by both Parties.
3.5.7 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and
recover from the losing party reasonable attorneys' fees and all other costs of such
action.
3.5.8 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.5.10 City's Right to Employ Other Consultants. City reserves right to
employ other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the Parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein
without the prior written consent of the City. Any attempt to do so shall be null and void,
and any assignees, hypothecates or transferees shall acquire no right or interest by
reason of such attempted assignment, hypothecation or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their
agents have participated fully in the preparation of this Agreement, the language of this
Agreement shall be construed simply, according to its fair meaning, and not strictly for
or against any Party. Any term referencing time, days or period for performance shall
be deemed calendar days and not work days. All references to Consultant include all
personnel, employees, agents, and subcontractors of Consultant, except as otherwise
specified in this Agreement. All references to City include its elected officials, officers,
and employees except as otherwise specified in this Agreement. The captions of the
various articles and paragraphs are for convenience and ease of reference only, and do
not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.5.14 Amendment; Modification. No supplement, modification, or
amendment of this Agreement shall be binding unless executed in writing and signed by
both Parties.
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3.5.15 Waiver. No waiver of any default shall constitute a waiver of any
other default or breach, whether of the same or other covenant or condition. No waiver,
benefit, privilege, or service voluntarily given or performed by a Party shall give the
other Party any contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has
not employed nor retained any company or person, other than a bona fide employee
working solely for Consultant, to solicit or secure this Agreement. Further, Consultant
warrants that it has not paid nor has it agreed to pay any company or person, other than
a bona fide employee working solely for Consultant, any fee, commission, percentage,
brokerage fee, gift or other consideration contingent upon or resulting from the award or
making of this Agreement. For breach or violation of this warranty, City shall have the
right to rescind this Agreement without liability. For the term of this Agreement, no
member, officer or employee of City, during the term of his or her service with City, shall
have any direct interest in this Agreement, or obtain any present or anticipated material
benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any subcontractor,
employee or applicant for employment because of race, religion, color, national origin,
handicap, ancestry, sex, sexual orientation or age. Such non-discrimination shall
include, but not be limited to, all activities related to initial employment, upgrading,
demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Consultant shall also comply with all relevant provisions of City's Minority Business
Enterprise program, Affirmative Action Plan or other related programs or guidelines
currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Worker's Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power
and authority to conduct its business and to execute, deliver, and perform the
Agreement. Each Party warrants that the individuals who have signed this Agreement
have the legal power, right, and authority to make this Agreement and bind each
respective Party.
Revised 04/13
12
3.5.22 Counterparts. This Agreement may be signed in counterparts,
each of which shall constitute an original.
3.5.23 Exhibits and Recitals. All Exhibits and Recitals contained herein
are hereby incorporated into this Agreement by this reference.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any
portion of the work required by this Agreement, except as expressly stated herein,
without prior written approval of City. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
In witness whereof the Parties have executed this Professional Services
Agreement on the date set forth below.
CITY OF ARCADIA CAROLLO ENGINEERS, INC.
Cy-
Dom is Lazzar 'ignatur=air
City Manager
Date: Dv tsN.vr 2-1 'Lo �� s 5VOC7
�1 l/
Print Name and Title
ATTEST: Date:
y
1,11%4 4 kNi plc By
Citerk � Signature
APPROVED AS TO FORM: R )c cA .r;)11,-.00 � Avp
Print Name and Title
ti Date: g / S / 1'\
Steph n P. Deitsch
City Attorney CON ,,R:
}
om Tait
Public Works Services Director
Revised 04/13
13
EXHIBIT "A"
SCOPE OF SERVICES
The Scope of Services for the Water & Sewer Cost of Service Study Update shall
include, but are not limited to the following:
The Scope of Services outlines the approach for undertaking the water and sewer cost
of service and rate study update. This scope builds on the previous rate work performed
in collaboration with the City. Carollo will utilize the existing water and sewer financial
models in order to create cost and time efficiencies.
The rate update will rely on the financial and rate models that were developed for the
City during the previous rate study and subsequently updated and refined in 2017.
Water and sewer rates shall be developed for FY 2020/2021 through FY 2024/2025,
with rate increases to be implemented on July 1 of each fiscal year. The overall
structure of the existing rate models shall be retained, but will be updated to include the
latest available actual revenues and expenditures, capital programs, and customer
usage data along with other items that may be necessary to develop financial
projections for the rate study period.
The financial projections and rate analyses shall incorporate the following overall goals:
• Generate sufficient revenue to cover operating expenditures including increases
in water supply costs driven by the Main San Gabriel Basin Watermaster's
replenishment and sully augmentation efforts.
• Provide funding for capital improvements and equipment replacement including
achieving a 75 year replacement cycled for the sewer system (approximately $2
million per year).
• Review reserve policies and set rates to adequately fund reserves to react to
catastrophic event (current policy is to target a $12 million reserve for the Water
Fund).
• Incorporate the costs of potential water treatment projects into the financial
projections and cost allocations.
Minor modifications to the rate structure may be recommended as driven by changing
costs, customer demand patterns, and regulatory or case law guidance.
Water rates are expected to include fixed charges per meter size that are the same for
all customer classes, tiered rates for single family residential users with allotments
based on meter size, tired rates for multifamily residential users with allotments set per
dwelling unit, and uniform rates for commercial and city government, institutional, and
irrigation accounts. Sewer rates are expected to include fixed residential charges and
fixed and volumetric commercial charges.
Task 1: Data Collection
Carollo shall submit a detailed data request to allow the City to begin to collect
necessary study data. Carollo shall review the collected data with City staff in order to
confirm that critical information is captured in the study.
A-1
Task 2: Revenue Requirements Analysis
Carollo shall update the revenue requirement forecast for the water and sewer utilities
and revisit the fiscal policies for each utility based on necessary cash-on-hand and
capital replacement needs. The revenue requirement analysis will focus primarily on
revenue sufficiency over the next 5 years based on the City's projected operating,
capital, policy, regulatory, and asset management needs. A longer-term review shall
also be completed in order to avoid potential rate shocks after the study period. The
water and sewer financial forecasts shall consider the overall funding strategy including
near- and long-term capital and operational needs, as well as potential impacts on
customer usage changes due conservation. The results of the revenue requirement
shall define the levels of rate increases necessary to fund ongoing expenditures and to
meet the City's policy goals.
Task 3: Cost-of-Service Analysis
The calculated revenue requirements shall be allocated to each customer class based
on the calculated capacity and treatment requirements by billable constituent. Billable
constituents for the water utility include customer service, capacity, base water demand,
peak water demand, and water supply. Billable constituents for the sewer utility include
customer service, capacity, and flow. Proposed rate structures shall adhere to
Proposition 218 - requirements and sound cost-of-service, ratemaking principles.
Task 3.1 — Customer Data Analysis:
Carollo shall conduct a statistical analysis of the City's past three to five years' of
historical customer data and consumption records. Due to the variable nature of the
City's water rates, it is important to evaluate a multiyear trend and determine potential
revenue lulls during low-usage years. Carollo shall use statistical software to quickly
analyze customer billing records and provide usable information, such as consumption
breakpoints used in evaluating different rate structures and conservation incentives.
Carollo shall examine the usage data and calibrate billing records against actual rate
revenues to prevent over or under estimation of the City's customer base. This is a
critical step in setting appropriate and sufficient rates. Carollo shall also develop
consumption profiles that illustrate usage patterns by customer class (residential,
commercial, governmental, institutional, and irrigation users). In addition to an analysis
of each customer class, Carollo shall examine the data to identify potential outliers that
have unique consumption profiles.
Task 3.2 —Allocation of Water Costs to Functional Categories
Carollo shall update the water cost allocation based on City's unique system and
consider the American Water Works Association (AWWA) methodologies. These
allocations will build on the existing water allocations for consistency and incorporate
the City's current asset and accounting records. Line-item expenditures shall be
allocated to customer service, capacity, base water usage, peak water usage and water
supply. Additionally, costs shall be assigned to fixed and variable categories, in order to
develop defensible meter and volumetric charges.
A-1
Task 3.3 — Allocation of Sewer Costs to Functional Categories
Carollo shall update the cost allocation based on City's unique system and consider the
Water Environment Federation (WEF) methodologies. These allocations will build on
the existing sewer allocation for consistency and incorporate the City's current asset
and accounting records. Line-item expenditures shall be allocated to customer service,
capacity, and flow.
Task 4: Rate Design Analysis
While the City reviews its water and sewer rate revenues on an annual basis, the City
last completed a full structural review in 2015. Since the last update, the water demand
patterns have changed in response to the drought and conservation messaging. Carollo
shall conduct a rate structure update based on customer usage patterns, the City's cost
structure and revenue needs, and the City's policy objectives. Carollo shall review and
evaluate potential rate structure modifications with City staff, such as potential
modifications to the tier breaks. The updated rate structures shall continue to comply
with Proposition 218 - and the latest case law requirements.
Task 5: Study Report
A draft and final version of a summary report shall be prepared to present the
methodology, process, and findings of the rate study and its recommendations. This
report will document the need for rate increases, multi-year revenue requirements, and
the proposed structure to support the Proposition 218 - process. Comments on the draft
report shall be incorporated into a final report.
Task 6: Meetings and Presentations
Carollo shall hold one (1) onsite workshop and two (2) WebEx review meetings with City
staff during the course of the project.
A-1
Exhibit "B"
SCHEDULE OF SERVICES
The term of this Agreement shall be for one year from date of execution, unless earlier
terminated as provided herein. Consultant shall complete the Services within the term
of this Agreement, and shall meet any other established schedules and deadlines.
B-1
Exhibit "C"
COMPENSATION
Compensation shall be based on time and materials spent in accordance with the tasks
specified, not to exceed the total compensation listed:
Professional Consulting Services - $78,982.00
Total Compensation $78,982.00
The total compensation shall not exceed the total listed without written authorization in
accordance with Section 3.3.1 of this agreement period.
fennifer'Ivey Alex$ugbee Anabdtcal Support, Carotin
Other
Description tion Total
p QA/QC PM Support Clerical Labor Expenses'II' PECE i-'i Direct Total
Hours
># P L"JP Cast Costs
$150 $120 5512.00
UPDATE WITH EXISTING MODELS
1 Data Collection and Kickoff 4 8 12 i 24 54,596 5800 5288 ' 51,088 $5.1
2 Revenue RequirmentsAnalysis 4 16 I 40 60 $10,460 5720 5720 $11.'
3 Cost of Service Analysis
3.1-Customer DataAndiysis 2 i 12 1 40 l 54 59,062 $648 : 5648 so.:
3.2-Water 4 5 8 I 40 I 52 $8.796 $524 ° 5624 $9.,
3.3-Wastewater 4 i 8 i 20 i 32 $5,796 $384 i $384 56,
4 Rate Design Analysis j
4.1-Water 6 12 I 40 58 $10,194 $696 i $696 510.E
4.2.Wastewater 4 6 20 30 $5,380 $360 I $360 $5.;
5 Study Report 8 i 16 I 48 __ 8i $14.112 $1.008 j $1,008 515.;
6 Meetings and Presentations
Web&&Review Meetings(2) I 6 6 i :2 58,148 . $144 i $144 $2.2
S-a5 41'o =hops(1) iincudes presertaitan prep 6 5 S'4--- '236 $168 ` $311 $'.i
v g , —
\ore=;. t.assification ie2end_
(1)Travel and per diem SP Senior Professions: P Professional
(2)Project Egsipment and Communication Expense LIP Lead Project Profess AP Assistant Professional
PP Project Professional WP/G Word Prccessir.gi Graphics
c-I