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Home My WebLink About2006.08.15_OPWA AgendaTYPE OF MEETING: Regular DATE: August 15, 2006 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch Notice and agenda filed in the office of the City Clerk and posted at City Hall at 5:00 p.m. on Friday, August 11, 2006. C) Timothy D. oo ey, Assistant City Ma z g r AGENDA 1. Call to Order Chairman Stephen Cataudella 2. Invocation Chuck Self, First Baptist Church of Owasso 3. Flag Salute 4. Roll Call 5. Consideration and appropriate action relating to a request for approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of the August 1, 2006 Regular Meeting. Attachment #5 -A B. Approval of Claims. Attachment #5 -B IP0815 OPbVA Agenda d- Owasso Public Works Authority August 15, 2006 Page 2 C. Acknowledgement of receiving the monthly FY 2006 -2007 budget status report. Attachment # 5 -C 6. Consideration and appropriate action relating to a request for Trustee approval of an Engineering Services Agreement between the City of Owasso and Greeley and Hansen, LLC in an amount not to exceed $35,000 for the purpose of preparing a Water and Sewer Rate Study. Mr. Rooney Attachment #6 Staff will recommend Trustee approval of the Engineering Services Agreement between the City of Owasso and Greeley and Hansen, LLC in an amount not to exceed $35,000 for the purpose of preparing a Water and Sewer Rate Study. 7. Consideration and appropriate action relating to a request for Trustee adoption of Resolution No. 2006 -04, a resolution adopting refuse collection rates. Mr. Rooney Attachment #6 Staff will recommend Trustee adoption of Resolution No. 200604. 8. Consideration and appropriate action relating to a request for Trustee adoption of Resolution No. 200605, a resolution adopting rates for water service within and outside the corporate limits of the City of Owasso. Mr. Rooney Attachment 96 Staff will recommend Trustee adoption of Resolution No. 2006 -05. 9. Report from OPWA Manager. 11 M15 OPWA Agenda. doe Owasso Public Works Authority August 15, 2006 Page 3 10. Report from OPWA Attorney. 11. New Business. (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 12. Adjournment. H 50815 OPWA Agenda.doc OWASSO PUBLIC WORDS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, August 1, 2006 The Owasso Public Works Authority met in regular session on Tuesday, August 1, 2006 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 p.m. on Friday, July 28, 2006. ITEM 1. CALL TO ORDER The meeting was called to order at 6:50 p.m. ITEM 2. FLAG SALUTE The flag salute was held during the City Council meeting preceding this meeting. ITEM 3. ROLL CALL PRESENT ABSENT Steve Cataudella, Chair Brent Colgan, Vice Chair D.J. Gall, Trustee Wayne Guevara, Trustee Susan Kimball, Trustee A quorum was declared present. STAFF Rodney J. Ray, Authority Manager Julie Lombardi, Authority Attorney ITETT,f 4. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGET\1D1, A. Approval of Minutes of the July 25, 2006 Special Meeting. B. Approval of Claims. Mr. Kimball moved, seconded by Mr. Gall, to approve the OPWA Consent Agenda with claims totaling $358,156.38 and payroll claims totaling $66,930.20. YEA: Cataudella, Colgan, Gall, Guevara, Kimball NAY: None Motion carried 5 -0. Owasso Public Works Authority ITEM 5. REPORT FROM OPWA MANAGER None ITEM 6. REPORT FROM OPWA ATTORNEY None ITEM 7. NEW BUSINESS None ITEM S. ADJOURNMENT Mr. Colgan moved, seconded by Mr. Guevara, to adjourn. YEA: Cataudella, Colgan, Gall, Guevara, Kimball NAY: None Motion carried 5 -0 and the meeting was adjourned at 6:51 p.m. Pat Fry, Minute Clerk August 1, 2006 Steve Cataudella, Chairman VENDOR DESCRIPTION AMOUNT WAL -MART COMMUNITY JANITORIAL SUPPLIES 19.63 SAMS CLUB OPERATING SUPPLIES 217.41 IKON OFFICE SOLUTIONS COPIER SERVICE 49.99 LOCKE SUPPLY REPAIR EXIT SIGN 91.43 AT &T PHONE USE 272.36 LOWES HOME IMPROVEMENT MATERIALS 25.58 ADMINISTRATION DEPT TOTAL. 676.40 TRIAD PRINTING CUT OFF NOTICES 84.38 OFFICE DEPOT OFFICE SUPPLIES 108.29 MARK MEYER METER READER 540.00 BEN RAY GUINN METER READER 141.60 TOMMY G ARRINGTON METER READER 128.70 TYRONE EUGENE DINKINS METER READER 355.50 MARK MEYER METER READER 545.85 DAVID R. OLINGHOUSE METER READER 436.05 KATHLEEN A BALSIGER METER READER 176.40 TECHNICAL PROGRAMMING SERVICES BILLING SERVICE 2,135.39 TPI BILLING SOLUTIONS UB COLLECTIONS 347.11 TPI BILLING SOLUTIONS UB COLLECTIONS 38.85 DELL MARKETING PRINTER 368.00 UTILITY BILLING DEPT TOTAL 5,406.12 GEORGE & GEORGE SAFETY & GLOVE REPAIR /MAINT SUPPLIES 21.66 WATER PRODUCTS REPAIR/MAINT SUPPLIES 9,680.82 UNIFIRST HOLDINGS UNIFORM RENTAL /GLEANING 88.06 ATWOODS WORK BOOTS- DUGAN/VAUGHAN /HARRIS 358.85 GEORGE & GEORGE SAFETY & GLOVE UNIFORM GEAR 38.88 BROWN FARMS SOD SOD 15.84 TWIN CITIES READY MIX SIDEWALK REPLACEMENT 101.88 WATER PRODUCTS REPAIR /MAINT SUPPLIES 2,077.11 CITY GARAGE CITY OF OWASSO VEHICLE MAINT -PARTS 9.63 FUELMAN FUEL CHARGES -JULY 717.99 CITY GARAGE CITY OF OWASSO VEHICLE MAINT - SERVICES 1,226.67 TRIAD PRINTING BUSINESS CARDS- VAUGHAN 45.00 WATER DEPT TOTAL 14,382.39 NORTH CENTRAL LABS LAB SUPPLIES 53.19 TRIAD PRINTING WWTP TEST BOOKS 268.53 GEORGE & GEORGE SAFETY & GLOVE REPAIR /MAINT SUPPLIES 21.66 WAL -MART COMMUNITY OPERATING SUPPLIES 15.56 SAMS CLUB OPERATING SUPPLIES 68.01 ESTES CHEMICALS 220.00 UNIFIRST HOLDINGS UNIFORM RENTAL /CLEANING '77.09 GEORGE & GEORGE SAFETY & GLOVE UNIFORM GEAR 38.88 LOWES HOME IMPROVEMENT CHLORINE DISPERSER REPAIR 74.72 CITY GARAGE CITY OF OWASSO VEHICLE MAINT -PARTS 86.31 FUELMAN FUEL CHARGES -JULY 410.78 WASTE MANAGEMENT QUARRY LANDFILL TIPPING FEES 4,117.91 CITY GARAGE CITY OF OWASSO VEHICLE MAINT - SERVICES 230.00 AT &T OKLA DEQ WATER QUALITY DIVISION GEORGE & GEORGE SAFETY & GLOVE UNIFIRST HOLDINGS GEORGE & GEORGE SAFETY & GLOVE TWIN CITIES READY MIX COMMERCIAL POWER SOLUTIONS CITY GARAGE CITY OF OWASSO FUELMAN CITY GARAGE CITY OF OWASSO AT &T IKON OFFICE SOLUTIONS O'REILLY AUTOMOTIVE GEORGE & GEORGE SAFETY & GLOVE UNIFIRST HOLDINGS GEORGE & GEORGE SAFETY & GLOVE CITY GARAGE CITY OF OWASSO FUELMAN O'REILLY AUTOMOTIVE NATIONAL POWER WASH T & W TIRE CITY GARAGE CITY OF OWASSO AT &T WASTE MANAGEMENT QUARRY LANDFILL UNIFIRST HOLDINGS AT &T WASTE MANAGEMENT QUARRY LANDFILL GREELEY & HANSEN, LLC MCGUIRE BROTHERS CONSTRUCTION DESCRIPTION AMOUNT PHONE USE 91.31 TESTING- MCKNIGHT /CARTER 80.00 WW TREATMENT PLANT DEPT TOTAL 5,853.95 REPAIR /MAINT SUPPLIES 21.66 UNIFORM RENTAL /CLEANING 122.13 UNIFORM GEAR 38.88 CONCRETE 244.50 GENERATOR REPAIR 615.31 VEHICLE MAINT -PARTS 22.91 FUEL CHARGES -JULY 1,305.15 VEHICLE MAINT - SERVICES 613.33 PHONE USE 244.68 WASTEWATER DEPT TOTAL 3,228.55 REFUSE FLIERS 32.96 SPARK PLUG 1.69 REPAIR /MAINT SUPPLIES 21.66 UNIFORM RENTAL /CLEANING 66.76 UNIFORM GEAR 38.89 VEHICLE MAINT -PARTS 893.05 FUEL CHARGES -JULY 5,156.26 REPLACE DRILL 64.97 POWER WASHING - VEHICLES 150.00 DISMOUNT /MOUNT 112.00 VEHICLE MAINT - SERVICES 3,066.67 PHONE USE 18.27 TIPPING FEES 12,996.37 REFUSE DEPT TOTAL 22,619.55 #?PWA OPERATING FUND TOTAL ENGINEERING SERVICE 42,336.00 CAPITAL IMPROVEMENTS FUND TOTAL 42,336.00 TRANSMISSION MAIN /BOOSTER 342,945.27 CAPITAL PROJECTS WATER SYSTEM 342,945.27 IMPROVEMENTS OPWA GRAND TOTAL 443,093.47 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE OVERTIME TOTAL EXPENSES EXPENSES bf:'WA, Administration ,,,, -249.68: Utility Billing 247.62 4,953.49 Wastewater 441.99 11,747.76 ter,Cbllectio'n -885.04 8 -616 50 Refuse 134.00 10,818.69 Regyple, Center 0.'00 - 1539.39 :FUN5',TOTAL"111 12 $2,584 ','�,Z,$69,245.41 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY - OPERATING FUND FISCAL YEAR 2006 -2007 Statement of Revenues & Expenses As of July 31, 2006 OPERATING REVENUES: Water Wastewater Refuse & recycle Otherfees Interest & other TOTAL OPERATING REVENUES OPERATING EXPENSES: Personal services Materials & supplies Other services Capital outlay Debt service TOTAL OPERATING EXPENSES REVENUES OVER EXPENSES TRANSFERS OUT MONTH TO -DATE YEAR PERCENT TO -DATE BUDGET OF BUDGET 315,866 315,866 3,200,000 9.87% 109,641 109,641 1,260,000 8.70% 94,113 94,113 1,073,000 8.77% 43,351 43,351 545,500 7.95% 249 249 25,500 0.98% 563,220 563,220 6,104,000 9.23% 131,570 131,570 1,924,165 6.84% 206,657 206,657 2,754,240 7.50% 44,496 44,496 938,595 4.74% 561 561 162,000 0.35% 383,285 383,285 5,779,000 6.63% 179,935 179,935 325,000 (27,083) (27,083) (325,000) 8.33% NET INCOME (LOSS) 152,852 WORKING CAPITAL - Beginning Balance WORKING CAPITAL - Ending Balance 152,852 991,070 366,025 1,143,922 366,025 TO: THE HONORABLE CHAIR D TRUSTEES OWASSO PUBLIC WORKS FROM: ROONEY ASSISTANT s - _, 1t SUBJECT: D REFUSE RATE ADJUSTMENl AND DATE: August 10, 2006 BACKGROUND: The Owasso Public Works Authority (OPWA) received Notice from the City of Tulsa that, effective October 1, 2006, water rates will increase from $1.98 to $2.18 per 1000 gallons. Because the City of Owasso currently purchases treated water from the City of Tulsa, FY 2006- 2007 operating budget included a rate increase to offset the rate increase from Tulsa. Similarly, the FY 2006 -2007 budget also included an increase of $1.00 for refuse service to provide additional operating funds for the OPWA. The current and proposed fee structure for water and refuse services are presented below. The last water rate increase of $0.15 per 1000 gallons occurred in 2002 to compensate for an increase in Tulsa water rates of $0.12 per 1000 gallons and to facilitate the financing of scheduled capital improvement projects. The last increase for such service occurred in 2001 in the amount of $2.00 per each 90 gallon refuse cart. SERVICE REGULAR RATE RURAL RATE* Current Proposed Current Proposed WATER Minimum 1,000 gallons $7.65 $7.90 $9.18 $9.48 Each additional 1,000 gallons $3.35 $3.70 $4.02 $4.44 REFUSE Residential Rates Each 90 gallon refuse cart $10.00 $11.00 Commercial Rate Each 90 gallon refuse cart $12.00 $13.00 Note: Water rates for rural customers have been established by OPWA Resolution to be 20% greater than in -city rates. The proposed rate increase to rural customers would be $30 per first 1000 gallons and $.42 per 1000 gallons thereafter. Water and Refuse Rate Adjustment and Study Page 2 of 3 An information sheet containing both the existing and proposed water rate structure and how it would affect single family residential customers is attached for your review. In addition, a comparison analysis of suburban cities is also attached for review. The proposed Resolutions No. 2006 -05 and No.2006 -06, if adopted by the OPWA, will established rates for water and refuse service, respectively, to become effective with the first utility billing in October 2006. RATE STUD': The Owasso Public Works Authority adjusts rates and service fees to compensate for increases in maintenance, operating and capital improvement costs. The last rate increase for water service was directly related to the increase in purchased water rate and anticipated debt service related to proposed improvements. No further analysis for cost of service was performed at that tune. To support the long -term financial sustainability of the Utility, it is recommended that a comprehensive water, sewer and refuse rate studies will be completed today to establish a long- term rate structure for the Utility. The objective of the studies would be to compile planning information — provided by the recently completed Master Plan documents — and maintenance and /or replacement requirements of existing infrastructure to assure the long -term financial stability of the Utility at the lowest possible cost to our customers. Such studies would be the first of its kind performed by the City of Owasso and expected to be completed by December 2006. To better plan for the future needs of our community, it is proposed that a methodological water and sewer rate study be completed by a specialized consultant. Staff contacted Greeley and Hansen, LLC for this purpose as they have extensive experience in performing rate studies for municipalities. It is further recommended that such work be immediately followed by an in- house rate analysis for refuse collection, which can be completed by City personnel utilizing training and knowledge obtained from the completion of the water and sewer rate study. Following the completion of such study, it is anticipated that rates will once again be adjusted to better align the growing needs of our community with the financial requirements of the Utility. Such adjustment, if necessary, will be proposed for implementation no earlier than October 1, 2007. FUNDING: Funding for the Rate Study is included in FY 2006 -2007 Water Distribution Budget, Line Item 61 -420 -53001 in the amount of $35,000. COMMENDATIONS: Item 1: Staff recommends Trustee adoption of OPWA Resolution No. 2006 -05 increasing rates for refuse collection service. Item 2: Staff recommends Trustee adoption of OPWA Resolution No. 2006 -06 increasing rates for water service. Water and Refuse Rate Adjustment and Study Page 3 of 3 Item 3: Staff recommends Trustee approval of an Engineering Services Agreement for the preparation of a Water and Sewer Rate Study by Greeley and Hansen, LLC in an amount not to exceed $35,000. ATTACHMENTS: A. Residential water rate change comparison B. Suburban water rate comparison C. Resolution No. 2006 -05 — Refuse Rate Increase D. Resolution No. 2006 -06 — Water Rate Increase E. Engineering Services Agreement OPWA Rates for 8/10106 Total Utility Bills Single Family Residential Customers 2,000 gals. sewer 5,000 gals. sewer 8,000 gals. sewer 10,000 gals. sewer 10,000 gals. sewer 3,000 gals. water 7,000 gals. water 12,000 gals. water 20,000 gals. water 35,000 gals. water Low Usage: _ Avg Usage: Moderate -High Usage: Summer Usage: High Summer Usage: Usage: Water gallons Sewer gallons Current Rate Billing: Water Sewer Refuse Ambulance Stormwater Total Proposed Rate Billing: Water Sewer Refuse Ambulance Stormwater Total $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 3000 7000 12000 20000 35000 2000 5000 8000 10000 10000 14.35 27.75 44.50 71.30 121.55 7.85 14.63 21.41 25.93 25.93 10.00 10.00 10.00 10.00 10.00 4.00 4.00 4.00 4.00 4.00 2.50 2.50 2.50 2.50 2.50 38.70 58.88 82.41 113.73 163.98 15.30 30.10 48.60 78.20 133.70 7.85 14.63 21.41 25.93 25.93 11.00 11.00 11.00 11.00 11.00 4.00 4.00 4.00 4.00 4.00 2.50 2.50 2.50 2.50 2.50 40.65 62.23 87.51 121.63 177.13 •s s 1° I iti $113.73 $121.63 $177.13 $163.98 , -M Water Rate Comparison Rates Effective October 2006 3,000 gals 7,000 gals 12,000 gals 20,000 gals 35,000 gals Low Usage: Ave Usage: Moderate -High Usage: Summer Usage: High Summer Usage: Bixby 16.16 30.88 49.28 78.72 133.92 Glenpool 26.59 42.81 63.64 95.11 151.81 Jenks 17.76 32.48 51.03 82.23 146.23 Sapulpa 18.63 36.03 57.78 92.58 157.83 Owasso 15.30 30.10 48.60 78.20 133.70 PUBLIC OWASSO • 1 •. OKLAHOMA RESOLUTION PUBLIC WOR PROVISION AUTHORITY ADOPTING RATES TO BE CHANGED FOR TH, OF NECESSARY COLLECTION 1 DISPOSAL O POLYCART REFUSE CUSTOMER ... 1° ESTABLISHING AN EFFECTIVE DATE. BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY THAT: SECTION ONE. From and after the effective date as hereinafter set forth, the charges by the Owasso Public Works Authority to its customers for polycart refuse service are described as follows: Type of Polycart Rate Residential $11.00 Multi - Family $11.00 Commercial $ 13.00 Yard Waste $6.50 SECTION TWO. Any customer having reached the age of sixty -five (65) years and retired from full -time employment, or alternatively, any customer being totally permanently disabled and receiving Social Security Disability Benefits therefore, may make application for and receive a diminution of rate to that residential rate in effect prior to the date hereof ($9.00). SECTION 'THREE: the rates herby approved shall become effective with the first utility billing in October 2006. APPROVED AND ADOPTED this 15t" day of August, 2006 by the Trustees of the Owasso Public Works Authority. Stephen Cataudella, Chairperson ATTEST: Sherry Bishop, Authority Secretary Julie Lombardi, Authority Attorney 4 IFMILVIR, A RESOLUTION OF THE OWASSO PUBLIC ' AUTHORITY ADOPTING RATES FOR WATER SERVICE WITHIN AND WITHOUT THE CORPORATE OF THE CITY OF O,, SSO,. EARMARKING 1 ESTABLISHING DATE. WHEREAS, The Owasso Public Works Authority ( "Authority ") desires to establish the following rates for the provision of water service: Base Rate Rate for usage for usage of of each additional 1 -100 gallons 100 gallons Users inside the corporate limits, as well as those customers of Rural Water $7.65 $3.35 District #3 Rogers County acquired November 1, 1993 Users outside corporate limits $9.18 $4.44 WHEREAS, The Authority desires to segregate and carmark certain revenues generated by the referenced water rate ( "Eanrrarked Revenues ") as follows: Minimum charge per month $1.00 Each additional 1000 gallons $.28 DE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORDS AUTHORITY TY THAT- SECTION ONE: from and after the effective date of this Resolution (as hereinafter set forth), the charge by the Authority for water services shall be adjusted accordance with the above- referenced recital paragraphs and as specifically codifrcd pursuant to Ordinance No. 871 of the City of Owasso, Oklahoma. ( "City ") SEC'T'ION TWO: The Earmarked Revenues (as defined above) shall be segregated and said Earmarked Revenues shall be utilized for the sole purpose of (1) funding capital improvement projects and associated costs of the City or the Authority and/or (ii) paying debt service on indebtedness pertaining thereto. SECTION THREE: The water rates established pursuant to the Resolution shall become effective with the first utility billing cycle in October 2006. APPROVED AND ADOPTED this 15TH day of August, 2006 by the Trustees of the Owasso Public Works Authority. Stephen Cataudella, Chairperson ATTEST: Sherry Bishop, Authority Secretary APPROVED AS TO FORM: Julie Lombardi, Authority Attorney THIS AGREEMENT, made and entered into this August 4, 2006 between the Owasso Public Works Authority, Owasso, Oklahoma, a Municipal Corporation, of Oklahoma, hereinafter referred to as OPWA, Greeley and Hansen LLC, hereinafter referred to as ENGINEER; WITNESSETH: WHEREAS, CITY intends to perform a Water and Wastewater Rate Review Study, hereinafter referred to as the PROJECT; and, WHEREAS, OPWA requires certain professional services in connection with the PROJECT, hereinafter referred to as the SERVICES; and, WHEREAS, ENGINEER, is prepared to provide such SERVICES; NOW THEREFORE, in consideration of the promises contained herein, the parties hereto agree as follows: 1. SCOPE OF PROTECT. The scope of the PROJECT is described in Attachment A, SCOPE OF PROTECT, which is attached hereto and incorporated by reference as part of this AGREEMENT. 2. SERVICES TO BE PERFORMED BY ENGINEER. ENGINEER shall perform the SERVICES described in Attachment B, SCOPE OF SERVICES, which is attached hereto and incorporated by reference as part of this AGREEMENT. 3. OPWA'S RESPONSIBILITIES. OPWA shall be responsible for all matters described in Attachment C, RESPONSIBILITIES OF THE OPWA, which is attached hereto and incorporated by reference as part of this AGREEMENT. 4. COMPENSATION. OPWA shall pay ENGINEER in accordance with Attachment D, COMPENSATION, and further described in Attachment E, FEE /MANHOUR BREAKDOWN, which are attached hereto and incorporated by reference as part of this AGREEMENT. SCHEDULE. ENGINEER shall perform the SERVICES described in Attachment B, SCOPE OF SERVICES, in accordance with the schedule set forth in Attachment F, SCHEDULE, attached hereto and incorporated by reference as part of this AGREEMENT. STANDARD OF PERFORMANCE. ENGINEER shall perform the SERVICES undertaken in a manner consistent with the prevailing accepted standard for similar services with respect to projects of comparable function and complexity and with the applicable laws and regulations published and in effect at the time of performance of the SERVICES. The PROJECT shall be designed and engineered in a good and workmanlike manner and in strict accordance with this AGREEMENT. All engineering work shall be performed by or under the supervision of Professional Engineers licensed in the State of Oklahoma, and properly qualified to perform such engineering services, which qualification shall be subject to review by OPWA. Other than the obligation of the ENGINEER to perform in accordance with the foregoing standards, no warranty, either express or implied, shall apply to the SERVICES to be performed by the ENGINEER pursuant to this AGREEMENT or the suitability of ENGINEER'S work product. 7. LIMITATION OF RESPONSIBILITY. 7.1. ENGINEER shall not be responsible for construction means, methods, techniques, sequences, procedures, or safety precautions and programs in connection with the PROJECT. 7.2. The presence of ENGINEER's personnel at a construction site is for the purpose of providing to the OPWA a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). 7.3. In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total PROJECT cost and /or execution. These conditions and cost/ execution effects are not the responsibility of ENGINEER. 7.4. Record drawings will be prepared, in part, on the basis of information compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. ENGINEER is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 7.5. ENGINEER's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer - generated drawing files furnished by ENGINEER are for OPWA or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. OPINIONS OF COST AND SCHEDULE, 8.1, Since ENGINEER has no control over the cost of labor, materials, equipment, or services furnished by others, or over contractors', subcontractors', or vendors' methods of determining prices, or over competitive bidding or market conditions, ENGINEER'S cost estimates shall be made on the basis of qualifications and experience as a Professional Engineer. 8.2. Since ENGINEER has no control over the resources provided by others to meet construction contract schedules, ENGINEER'S forecast schedules shall be made on the basis of qualifications and experience as a Professional Engineer. 9. LIABILITY AND INDEMNIFICATION. 9.1. ENGINEER shall defend and indemnify OPWA from and against legal liability for damages arising out of the performance of the SERVICES for OPWA, including but not limited to any claims, costs, attorney fees, or other expenses of whatever nature where such liability is caused by the negligent act, error, or omission of ENGINEER, or any person or organization for whom ENGINEER is legally liable. Nothing in this paragraph shall make the ENGINEER liable for any damages caused by the OPWA or any other contractor or consultant of the OPWA. 9.2. ENGINEER shall not be liable to OPWA for any special, indirect or consequential damages, such as, but not limited to, loss of revenue, or loss of anticipated profits. 10. CONTRACTOR INDEMNIFICATION AND CLAIMS. 10.1. OPWA agrees to include in all construction contracts the provisions of Articles 7.1, and 7.2, and provisions providing contractor indemnification of OPWA and ENGINEER for contractor's negligence. 10.2. OPWA shall require construction contractor(s) to name OPWA and ENGINEER as additional insureds on the contractor's general liability insurance policy. 11. COMPLIANCE WITH LAWS. In performance of the SERVICES, ENGINEER shall comply with applicable regulatory requirements including federal, state, and local laws, rules, regulations, orders, codes, criteria and standards. ENGINEER shall procure the permits, certificates, and licenses necessary to allow ENGINEER to perform the SERVICES. ENGINEER shall not be responsible for procuring permits, certificates, and licenses required for any construction unless such responsibilities are specifically assigned to ENGINEER in Attachment B, SCOPE OF SERVICES. 12. INSURANCE 12.1. During the performance of the SERVICES under this AGREEMENT, ENGINEER shall maintain the following insurance: 12.1.1. General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $1,000,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate. 12.1.2. Automobile Liability Insurance with bodily injury limits of not less than $1,000,000 for each person and not less than $1,000,000 for each accident and with property damage hints of not less than $100,000 for each accident. 12.1.3. Worker's Compensation Insurance in accordance with statutory requirements and Employers' Liability Insurance with limits of not less than $100,000 for each occurrence. 12.1.4. Errors and Omissions Insurance to remain in effect during the PROJECT and the term of any legal liability. Errors and Omissions coverage to be for a minimum of $1,000,000, deductibles subject to approval. 12.2. ENGINEER shall furnish OPWA certificates of insurance which shall include a provision that such insurance shall not be canceled without at least 30 days written notice to the OPWA. 13. OWNERSHIP AND REUSE OF DOCUMENTS. 13.1. All documents, including original drawings, estimates, specifications, field notes and data shall become and remain the property of the OPWA. 13.2. OPWA'S reuse of such documents without written verification or adaptation by ENGINEER for the specific purpose intended shall be at OPWA'S risk. 14. TERMINATION OF AGREEMENT. 14.1. The obligation to continue SERVICES under this AGREEMENT may be terminated by either party upon fifteen days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. 14.2. OPWA shall have the right to terminate this AGREEMENT, or suspend performance thereof, for OPWA'S convenience upon written notice to ENGINEER; and ENGINEER shall terminate or suspend performance of SERVICES on a schedule acceptable to OPWA. In the event of termination or suspension for OPWA'S convenience, OPWA shall pay ENGINEER for all SERVICES performed to the date of termination in accordance with provisions of Attachment D, COMPENSATION. Upon restart of a suspended project, ENGINEER's contract price and schedule shall be equitably adjusted. 15. NOTICE. Any notice, demand, or request required by or made pursuant to this AGREEMENT shall be deemed properly made if personally delivered in writing or deposited in the United States mail, postage prepaid, to the address specified below. To ENGINEER: Kenneth V. Johnson Greeley and Hansen LLC 100 S. Wacker Drive, Suite 1400 Chicago, Illinois 60606 To OPWA: OPWA, OKLAHOMA P.O. Box 180 Owasso, Oklahoma 74055 Attention: Ana C. Stagg 15.1. Nothing contained in this Article shall be construed to restrict the transmission of routine communications between representatives of ENGINEER and OPWA. 16. UNCONTROLLABLE FORCES. Neither OPWA nor ENGINEER shall be considered to be in default of this AGREEMENT if delays in or failure of performance shall be due to forces which are beyond the control of the parties; including, but not limited to: fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil disturbance, sabotage; inability to procure permits, licenses, or authorizations from any state, local, or federal agency or person for any of the supplies, materials, accesses, or services required to be provided by either OPWA or ENGINEER under this AGREEMENT; strikes, work slowdowns or other labor disturbances, and judicial restraint. 17. SEVERABILITY. If any portion of this AGREEMENT shall be construed by a court of competent jurisdiction as unenforceable, such portion shall be severed herefrom, and the balance of this AGREEMENT shall remain in full force and effect. 18. INTEGRATION AND MODIFICATION. This AGREEMENT includes Attachments A, B, C, D, E, F and represents the entire and integrated AGREEMENT between the parties; and supersedes all prior negotiations, representations, or agreements pertaining to the SCOPE OF SERVICES herein, either written or oral. OPWA may make or approve changes within the general Scope of Services in this AGREEMENT. If such changes affect ENGINEER's cost of or time required for performance of the services, an equitable adjustment will be made through an amendment to this AGREEMENT. This AGREEMENT may be amended only by written instrument signed by each of the Parties. 19. DISPUTE RESOLUTION PROCEDURE. In the event of a dispute between the ENGINEER and the OPWA over the interpretation or application of the terms of this AGREEMENT, the matter shall be referred to the City's Director of Public Works for resolution. If the Director of Public Works is unable to resolve the dispute, the matter may, in the Director's discretion, be referred to the City Manager for resolution. Regardless of these procedures, neither party shall be precluded from exercising any rights, privileges or opportunities permitted by law to resolve any dispute. 20. ASSIGNMENT. ENGINEER shall not assign its obligations undertaken pursuant to this AGREEMENT, provided that nothing contained in this paragraph shall prevent ENGINEER from employing such independent consultants, associates, and subcontractors as ENGINEER may deem appropriate to assist ENGINEER in the performance of the SERVICES hereunder. 21. APPROVAL. It is understood and agreed that all work performed under this AGREEMENT shall be subject to inspection and approval by the Public Works Department of the City of Owasso, and any plans or specifications not meeting the terms set forth in this AGREEMENT will be replaced or corrected at the sole expense of the ENGINEER. The ENGINEER will meet with the City staff initially and periodically thereafter and will be available for public meetings and/or City of Owasso presentations. 22. KEY PERSONNEL. In performance of the SERVICES hereunder, ENGINEER has designated Joseph M. Gorgan as Project Manager for the PROJECT. ENGINEER agrees that no change will be made in the assignment of this position without prior approval of CITY. IN WITNESS WHEREOF, the parties have executed this AGREEMENT in multiple copies on the respective dates herein below reflected to be effective on the date executed by the Chair of the Owasso Public Works Authority. APPROVED: Greelev and Hansen LL Kenneth V. Johnson Principal Date Ronald F. Martin Principal Date `f' f, * �f City Clerk Chair Date APPROVED AS TO FORM. City Attorney 6 SCOPE OF PROJECT. The PROJECT shall consist of the project described as: The Water and Wastewater Rate Review consists of reviewing the current water and wastewater rates charged by the Owasso Public Works Authority (OPWA) with the goal of generating sufficient revenue to properly fund system growth, capital improvements, operation and maintenance and debt retirement. It is understood that these revenue requirements must be carefully balanced against the customer's willingness/ ability to to pay for OPWA services. The balance (between revenue and expense) will be reached using a collaborative process involving industrial customers, residential customers, business leaders and OPWA staff. The information gathered from the Stakeholders will be modeled using a financial model. The outcome of the model will enable the OPWA to establish water and wastewater rates for the next five (5) years. The Water and Wastewater Rate Review Study will incorporate information from the following City of Owasso studies: ® Wastewater faster Plan, May 2005 prepared by Greeley and Hansen LLC. 0 Wet Weather Study currently being prepared by Greeley and Hansen LLC. The execution of the work will be broken up into six major work tasks, as follows: A. Project Meeting No. 1 B. Interviewing of Five Stake Holders C. Review Water and Wastewater Facilities Operational Efficiencies D. Project Meeting No. 2 E. Run Financial Model F. Project Meeting No. 3 A more detailed description of each work task is provided as part of Attachment B. RATE STUDY ATTACHMENT A A -1 Agreement t Engi Services neering P11 • • Attachment B The services to be performed by the ENGINEER, Greeley and Hansen LLC, under this AGREEMENT will consist of performing a Water and Wastewater Rate Review Study for the OPWA. The execution of the work will be broken up into six major work tasks, as stated below. Further, it is understood and agreed that the date of beginning, rate of progress, and the time of completion of the work to be done hereunder are essential provisions of this AGREEMENT; and it is further understood and agreed that the work embraced in this AGREEMENT shall commence upon execution of this AGREEMENT and receipt of Notice to Proceed. The Basic Services of ENGINEER include, but are not necessarily limited to, the following tasks: Greeley and Hansen LLC propose to furnish the OPWA the following professional engineering services for the development of the Water and Wastewater Rate Review Study: 1. Project Meeting Moo 1 1.1 Project Meeting No. 1 - Greeley and Hansen will conduct a meeting with OPWA personnel to initiate project activities. The purpose of the meeting will be to: ® Define project scope and goals ® Reach consensus on OPWA's goals for Water and Wastewater Rate Study Project • Confirm interview schedule location • Review present cost of service financial data • Review and revise interview questions • Schedule Meeting No. 2 1.2 Deliverables --- Meeting Agenda, Interview questions, list of people to be interviewed and minutes of the meeting. 2. Interview Five Stakeholders 2.1 Conduct five one hour interviews: ® hlterview three customers ® Interview two business developers/ leaders i= 2.2 Tabulate findings from interviews into a summary sheet. 2.3 Create summary of all interviews. 2.4 Deliverables - Submit interview summary sheet of the five interviews. 3. Water and Wastewater Facilities Operational Efficiencies 3.1 Review the operational efficiencies of the water and wastewater facilities operations. 3.2 Deliverables - Summary of Water and Wastewater operational efficiencies. 4e Project Meeting loo, 2 4.1 Greeley and Hansen will conduct a second meeting with OPWA personnel, the goals of the meeting are as follows: ® Discuss operational efficiencies summary ® Review capital improvements plans and goals ® Review anticipated growth rates and population density ® Review regulatory issues and changes ® Review GASB 34 and CMOM needs and requirements ® Develop "Potential Improvement Points" (PIP) 4.2 Deliverables - Meeting Agenda and the minutes of the meeting which will serve as the "Basis of Understanding" for the parameters of the financial model. 5. Financial Model 5.1 Run Model - Run model for two different scenarios: 5.2 Deliverables - Draft Report that includes Financial Model runs detailing assumptions, scenarios and analysis. Report to include rate and implementation schedule. 6. Project Meeting No. 3 6.1 Greeley and Hansen will conduct a third and final meeting with OPWA personnel to initiate project activities. The purpose of the meeting will be to: ® Present and revise report based upon comments. Present alternative rate schedules B -2 ® Review and revise PowerPoint presentation to OPWA. 6.2 Deliverables _ Meeting Agenda, revised "Rate Review Study" report, OPWA Presentations and the minutes of the meeting. B -3 Responsibilities Attachment C RESPONSIBILITIES OF THE OPWA. The OPWA agrees: A. Scheduling. Provide notice to at least 14 days prior to acheduling a progress meeting. P. Reports, Records, etc. To furnish, as required by the work, and not at expense to the ENGINEER: 13.1. Records, reports, studies, plans, drawings, and other data available in the files of the OPWA that may be useful in the work involved under this AGREEMENT. 13.2. ENGINEER will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by OPWA. C. Access. To provide access to public and private property when required in performance of ENGINEER's services. D. Staff Assistance. Designate in writing a person to act as its representative in respect to the work to be performed under this AGREEMENT, and such person shall have complete authority to transmit instructions, receive information, interpret and define OPWA'S policies and decisions with respect to materials, equipment, elements and systems pertinent to the services covered by this AGREEMENT. E. Review. Examine all studies, reports, sketches, estimates, specifications, drawings, proposals and other documents presented by ENGINEER and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of ENGINEER. C -1 The OPWA agrees to pay, as compensation for services set forth in Attachment B, a total lump sum fee of thirty four thousand nine hundred and sixty two dollars ($34,962.00) for the services described in Attachment B. ENGINEER shall submit monthly invoices based upon the proportion of the total services actually completed at the time of billing. Invoices are due and payable within 30- calendar days of receipt by the OPWA. A breakdown of the lump sum amount to be billed for each of the work tasks are shown as follows: City of Owasso, Oklahoma Water and Wastewater Rate Review Study AAT -..I, rP--I. 1. Project Meeting No. 1 2. Interview Five Stakeholders 3. Water and Wastewater Operational Efficiencies 4. Project Meeting No. 2 5. Financial Model 6. Project Meeting No. 3 Travel Reproduction/ Printing Estimated Feel $3,216 $6,202 $6,802 $3,216 $7,506 $4,520 $31,462 $3,000 $500 $34,962 OWASSO RATE STUDY ATTACHMENT D D -1 Owasso Public Works Authority City of Owasso, Oklahoma Water and Wastewater Rate Review Study LABOR MAN HOUR /PEE SCHEDULE Exhibit E Task Description Direct Labor Hours - Greeley and Hansen Project Director Project Manager UMC Engineer Total Hours Compensation Billing Rates: 230 189 163 I. Project Meeting No. 1 a. Project Meeting No. 1 1 2 16 19 $3,216 2. Interview Five Stakeholders a. Interviews b. Tabulation of Findings C. Summary Development 0 0 1 1 0 2 2 4 12 12 8 32 12 14 11 37 $1,956 52,334 $1,912 $6,202 Szebtotaal - Interview Five Stake Holders 3. Water and Wastewater Operational Efficiencies 1 2 38 0 $6,802 4. Project Meeting No. 2 1 2 16 19 $3,216 5. Financial model a. Model Runs 1 4 40 45 $7,506 6. Project Meeting No. 3 1 2 24 27 $4,520 x >L e a. Printing b. I rave l3,lDi)(D Project Total 6 16 966 147 $500 $34,962 Exhibit A, 12:21 PM, 8/10/2006 SCHEDULE: The Water and Wastewater Rate Review Study will be conducted in a single phase. It is anticipated that the project will require approximately three months to complete. The schedule illustrates a start date of early early September and an approximate completion date at the end of November. Actual start date will be 14 days from Notice to Proceed by the Owasso Public Works Authority (OPWA). Water and Wastewater Rate Review Study Schedule 1. The following schedule is based on receiving the notice to proceed by September 5, 2006 2. Meeting No. 1 to be completed by September 19, 2006 Note: meeting schedule dependent upon availability of Owasso OPWA Staff. 3. Interview 5 Stakeholders to be completed in conjunction with Meeting No. 1 4. Review of Operational Efficiencies review to be completed by September 22, 2006. 5. Meeting No. 2 to be completed by October 17, 2006. 6. Run Financial Model to be completed by October 31, 2006. 7. Meeting No. 3 to be completed by November 15, 2006. OWASSO RATE STUDY ATTACHMENT F F