CH2MHill - Water Division Business Plan 4
i
, e �
CITY OF TIGARD,OREGON
Water Division Business Plan Development
PERSONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into this 22nd of April, 2008, by and between the CITY OF TIGARD, a
municipal corporation of the State of Oregon, hereinafter called City, and CH2M Hill, hereinafter called
Contractor.
RECITALS
City has need for the services of a company with a particular training, ability, knowledge, and experience
possessed by Contractor, and
City has determined that Contractor is qualified and capable of performing the professional services as City
does hereinafter require, under those terms and conditions set forth:
Therefore, the parties agree as follows:
SCOPE OF WORK
Contractor shall initiate services on upon receipt of City's notice to proceed, together with an executed copy of
this Agreement. Contractor agrees to complete work that is detailed in Exhibit A— Scope of Work/Contractor's
Proposal and by this reference made a part hereof.
EFFECTIVE DATE AND DURATION
This Agreement shall become effective upon execution and shall expire, unless otherwise terminated or
extended, on 30th of June, 2009. All work under this Agreement shall be completed prior to the expiration of
this Agreement.
COMPENSATION
City agrees to pay Contractor an amount not to exceed Twenty Four Thousand dollars ($24,000) annually for
performance of those services described in this Agreement. Payment will be made based on Contractor's
invoice, subject to the approval of John Goodrich, Utility Manager, and not more frequently than monthly.
Payment shall be payable within thirty(30) days from the date of receipt by the City.
CONTACT INFORMATION
All notices, bills, and payments shall be made in writing and may be given by personal delivery, mail, or fax.
Payments may be delivered by personal delivery, mail, or electronic transfer. The following addresses and
contacts shall be used to transmit notices,bills,payments, and other information:
Contact Manager for City: Contact Manager for Contractor:
City of Tigard Company: CH2M Hill
Attn: John Goodrich, Utility Manager Attn: Dale Jutila
13125 SW Hall Blvd., Tigard, Oregon 97223 Address: 2020 SW Fourth Ave., Portland, OR 97201
Phone: 503-639-4171 ext. 2609 Phone: 503-235-5000
Fax: 503-684-8840 Fax:
Email Address:johng@tigard-or.gov Email Address:
CONTRACTOR AS INDEPENDENT CONTRACTOR
Contractor acknowledges that for all purposes related to this Agreement, Contractor is and shall be deemed to be an
independent contractor as defined by ORS 670.600 and not an employee of City, shall not be entitled to benefits of
any kind to which an employee of City is entitled and shall be solely responsible for all payments and taxes
required by law. Furthermore, in the event that Contractor is found by a court of law or any administrative agency
to be an employee of City for any purpose, City shall be entitled to offset compensation due, or to demand
repayment of any amounts paid to Contractor under the terms of this Agreement, to the full extent of any benefits
or other remuneration Contractor receives (from City or third party) as a result of said finding and to the full extent
of any payments that City is required to make(to Contractor or to a third party) as a result of said finding.
Contractor acknowledges that for all purposes related to this Agreement, Contractor is not an officer, employee, or
agent of the City as those terms are used in ORS 30.265.
INDEMNIFICATION
City has relied upon the professional ability and training of Contractor as a material inducement to enter into this
Agreement. Contractor warrants that all its work will be performed in accordance with generally accepted
professional practices and standards as well as the requirements of applicable federal, state and local laws, it being
understood that acceptance of a contractor's work by City shall not operate as a waiver or release.
Contractor and City agree to indemnify and defend the other, and the other's officers, agents and employees and
hold them harmless from any and all liability, causes of action, claims, losses,damages,judgments or other costs or
expenses including attorney's fees and witness costs and (at both trial and appeal level, whether or not a trial or
appeal ever takes place) incurred by the party being indemnified resulting from the indemnifying party's acts (or
failure to act when action is appropriate) that may be asserted by any person or entity which in any way arise from
or relate to this Agreement or the performance of obligations under this agreement, except liability arising out of
the sole negligence of the party being indemnified. The indemnification by Contractor of the City shall also cover
claims brought against the City under state or federal worker's compensation laws. If any aspect of this indemnity
shall be found to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the
validity of the remainder of this indemnification.
INSURANCE
Contractor shall maintain insurance acceptable to City in full force and effect throughout the term of this contract.
Such insurance shall cover all risks arising directly or indirectly out of Contractor's activities or work hereunder.
The policy or policies of insurance maintained by the Contractor shall provide at least the following limits and
coverages:
a. Commercial General Liability Insurance
Contractor shall obtain, at contractor's expense, and keep in effect during the term of this contract,
Comprehensive General Liability Insurance covering Bodily Injury and Property Damage on an
"occurrence" form (1996 ISO or equivalent). This coverage shall include Contractual Liability
insurance for the indemnity provided under this contract. The following insurance will be carried:
Coverage Limit
General Aggregate 1,000,000
Products-Completed Operations Aggregate 1,000,000
Personal &Advertising Injury 1,000,000
Each Occurrence 1,000,000
Fire Damage (any one fire) 50,000
Medical Expense (any one person) 5,000
b. Business Automobile Liability Insurance
If Contractor will be delivering the goods, Contractor shall provide City a certificate indicating that
Contractor has business automobile liability coverage for all owned, hired, and non-owned vehicles. The
Combined Single Limit per occurrence shall not be less than $1,000,000. Said insurance shall name City as
an additional insured and shall require written notice to City thirty (30) days in advance of cancellation. If
Contractor hires a carrier to make delivery, Contractor shall ensure that said carrier complies with this
paragraph.
c. Workers' Compensation Insurance
The Contractor and all employers providing work, labor or materials under this Contract that are either
subject employers under the Oregon Workers' Compensation Law and shall comply with ORS 656.017,
which requires them to provide workers' compensation coverage that satisfies Oregon law for all their
subject workers or employers that are exempt under ORS 656.126. Out-of-state employers must provide
Oregon workers' compensation coverage for their workers who work at a single location within Oregon for
more than 30 days in a calendar year. Contractors who perform work without the assistance or labor of any
employee need not obtain such coverage. This shall include Employer's Liability Insurance with coverage
limits of not less than $500,000 each accident.
d. Insurance Carrier Rating
Coverages provided by the Contractor must be underwritten by an insurance company deemed
acceptable by the City. The City reserves the right to reject all or any insurance carrier(s) with an
unacceptable financial rating.
e. Certificates of Insurance
As evidence of the insurance coverage required by the contract, the Contractor shall furnish a Certificate
of Insurance to the City. No contract shall be effected until the required certificates have been received
and approved by the City.
The procuring of such required insurance shall not be construed to limit contractor's liability hereunder.
Notwithstanding said insurance, Contractor shall be obligated for the total amount of any damage, injury, or loss
caused by negligence or neglect connected with this contract.
TERMINATION
The parties agree that any decision by either party to terminate this Agreement before 30th of June, 2009 shall
be accompanied by sixty (60) days written notice to the other party prior to the date termination would take
effect. There shall be no penalty for early termination. If City terminates the contract pursuant to this paragraph,
it shall pay Contractor for services rendered prorated to the date of termination.
AGREEMENT MODIFICATIONS
Modifications to this Agreement are valid only if made in writing and signed by all parties.
OWNERSHIP OF WORK PRODUCT
City shall be the owner of and shall be entitled to possession of any and all work products of Contractor which
result from this Agreement, including any computations, plans, correspondence or pertinent data and information
gathered by or computed by Contractor prior to termination of this Agreement by Contractor or upon completion of
the work pursuant to this Agreement.
GOVERNING LAW
Contractor shall comply with all applicable federal, state and local laws; and rules and regulations on non-
discrimination in employment because of race, color, ancestry, national origin, religion, sex, marital status, age,
medical condition or disability. The provisions of this Agreement shall be construed in accordance with the
provisions of the laws of the State of Oregon. All provisions required by ORS Chapter 279 to be included in a
contract of this type are incorporated into this Agreement as though fully set forth herein. Any action or suits
involving any question arising under this Agreement must be brought in the appropriate court of the State of
Oregon.
CONDITIONS OF SUPPLYING A PUBLIC AGENCY
Where applicable, Contractor must make payment promptly as due to persons supplying Contractor labor or materials
for the execution of the work provided by this order. Contractor must pay all contributions or amounts due from
Contractor to the Industrial Accident Fund incurred in the performance of this order. Contractor shall not permit any
lien or claim to be filed or prosecuted against Buyer or any subdivision of City on account of any labor or material to be
furnished. Contractor further agrees to pay to the Department of Revenue all sums withheld from employees pursuant
to ORS 316.167.
COMPLETE AGREEMENT
This Agreement and attached exhibit constitutes the entire Agreement between the parties. No waiver, consent,
modification, or change of terms of this Agreement shall bind either party unless in writing and signed by both
parties. Such waiver, consent, modification, or change if made, shall be effective only in specific instances and for
the specific purpose given. There are no understandings, agreements, or representations, oral or written, not
specified herein regarding this Agreement. Contractor, by the signature of its authorized representative, hereby
acknowledges that he/she has read this Agreement, understands it and agrees to be bound by its terms and
conditions.
IN WITNESS WHEREOF, City has caused this Agreement to be executed by its duly authorized undersigned
officer and Contractor has executed this Agreement on the date hereinabove first written.
CITY OF Ti ARD CONT T
By: Auth ' ed Ci y staff By: Authorized gent of Contractor
Date Date
Exhibit A
Scope of Work/Contractor's Proposal
City of Tigard Water Division
Business Development Planning
Scope of Work and Estimated Fee
General
The City of Tigard Water Division is interested in creating a business plan for its areas of
responsibility.The process to create this business plan will include steps to develop a
common understanding and concurrence among the Water Division staff of the variety of
programs and activities needed to provide its customers with a safe and adequate supply of
drinking water.Once,the list of programs is developed and prioritized,it is expected that
best management practices will be developed by Tigard staff for each of the identified
programs.CH2M HILL will assist Tigard in this project,as described in the scope of work.
Scope of Work
CH2M HILL will provide the following tasks in performance of this project:
Task 1—Project Chartering
Sub-task 1a—Kick-off Meeting
Prepare for and conduct an initial 2-hour meeting with John Goodrich and Dennis
Koellermeierto confirm the charge for the project;articulate the risks faced by the
Water Division,which provide the rationale for taking this comprehensive look at its
programs;:determine who will participate in the working group;and select the
approach for evaluating programs identified in Task 2.Up to three approaches that
could be used for evaluating the programs will be presented and the City will select
which approach to use.
Sub-task 1 b—First meeting with entire Water Division group and Utility Billing staff
Prepare for and participate in a 2-hour meeting with the entire Water Division group
and the Utility Billing staff to describe the project;explain the reasons for doing it;
and ask questions from the larger group about concerns,expectations,ideas,and
other thoughts to gain a broad perspective.
Task 2—Program Identification/Prioritization
Sub-task 2a—First meeting with working group
Prepare for and conduct a daylong meeting with the working group.The primary
purposes for the meeting will be to identify the current Water Division
programs/activities,identify what other programs could be implemented,discuss
organization of the programs,establish criteria to be used in evaluating the
BUSINESS PLANNING SCOPE APR 0 000OC
APRIL 0.2 WO
programs,and develop rating descriptors to facilitate consistent definitions for
ratings.
Sub-task 1b—Prepare rating sheets
Create water division program rating sheets that incorporate the programs,selected
rating criteria,and rating descriptors developed in Task 3.These will be in a
spreadsheet format that will facilitate easy entry of ratings by the working group.
Print 10 copies for the working group.
Sub-task 2c-Second meeting with working group
Prepare for and conduct a day-long meeting with the working group.The primary
purposes for the meeting will be to discuss the program rating activity,rate the
Water Division work programs,and discuss the working group members'ratings.
Sub-task 2d-Collate ratings from working group
Results of the rating activity will be collected into a single spreadsheet to facilitate
sorting of programs based on ratings or other characteristics.Print 10 copies for the
working group.
Sub-task 2e—Third meeting with working group
Prepare for and conduct a half-day meeting with the working group.The primary
purposes for the meeting will be to go over results of the scoring exercise conducted
in Task 5,adjust the scores/ratings as appropriate,identify wjlich programs will be
targeted for written procedures and/or best management practices,and make
assignments to Tigard staff for developing the written program documentation.
Task 3—Project Summary
Sub-task 3a-Second meeting with the entire Water Division group and Utility Billing
staff
Prepare for and participate in a 2-hour meeting with the entire Water Division group
and Utility Billing staff to describe the process of documenting the programs,
determining evaluation criteria,rating,and results.Present the recommended
approach to the group that describes the next steps that will be completed by Tigard
staff.This will provide an opportunity for water division feedback regarding the
results and provide clarification of upcoming activities.
Sub-task 3b-Prepare and deliver summary
Prepare and deliver a summary memorandum in electronic format that describes the
process used in the project and the results in sufficient detail that the process can be
repeated in other Public Works divisions.
2
Schedule
Target dates for the six meetings and the summary memorandum are show below:
Meeting/Deliverable Projected Date
Kick-off Meeting April 29,2008
Meeting with entire Water May 7,2008
Division group and Utility
Billing staff
First meeting with working May 28,2008
group
Second meeting with working June 18,2008
group
Third meeting with working July 7,2008
group
Second meeting with the entire July 10,2008
Water Division group and
Utility Billing staff
Deliver Summary Memo July 24,2008
Compensation
The following table shows the estimated cost of$724;000 for conducting the above scope.A
maximum of$12,000 will be incurred prior to June 30,2008.
Staff Hours Rate Estimated Cost
Labor& enses
Dale Jutila,Primary Consultant 110 $180 $20,120
Dan Speicher,Process Advisor 8 $210 1,680
Support Staff 22 $100 2,200
Total $24,000
3
Dale Jutila, P.E.
Client Service Manager
Distinguishing Qualifications
• Respected member of the Pacific Northwest drinking water community
• Facilitator for productive relationships and cooperative ventures
• Innovative leader who initiated organizational development program
• Advocate for sound asset management principles for utilities
Relevant Experience
Mr.Jutila is a client service manager with CH2M HILL's Water Business Group in Portland,
Oregon.He brings more than 30 years of experience in all aspects of water utility leadership.
Prior to joining CH2M HILL,Dale served as Water Division Manager for the City of
Gresham Department of Environmental Services;and General Manager,Manager,and
Deputy Chief Engineer for several water utilities in the Portland area;Clackamas River
Water,Mt.Scott Water District,and the Portland Water Bureau,respectively.
Dale is experienced in both the operation and administration of water utilities including
developing agreements among multiple agencies.He led the merger of two water utilities
resulting in a,savings of$100;000 in the first year;.negotiated.agreement for joint ownership
of water supply facilities;developed regional and sub-regional wholesale water supply
agreements;participated in legislative,regional and governmental activities;and provided
leadership in Portland Regional Water Supply Planning process.As a steward of natural
and human resources,he promoted creation of first watershed council for a major sub-basin.
Representative CH2M HILL Project Experience and Dates of involvement
Task Leader;Asset Management Tasks—Clackamas County Service.District No.1
Sanitary Sewer Master Plan;Clackamas County,Clackamas,Oregon,11/2007 to 7/2008
(estimated).Providing task leadership for application of asset management principles in
developing the sanitary sewer master plan,including condition assessment of existing
facilities and prioritizing facilities using risk-based evaluation developed from likelihood
and consequence of failure scoring matrices.
Technical Facilitator;Tualatin Project Title Transfer Governance Investigation;Tualatin
Basin Water Supply Partnership;Hillsboro,Oregon;6/2007 to 10/2007.The Partnership
explored governance options for a new entity that would be created to receive title for
Scoggins Dam,Hagg Lake,and other facilities in the'rualatin Project.Provided supportive
facilitation services for the nine-member partnership in a sub-consultant role,assisting the
members work through technical issues related to potential formation of the new entity.
This assistance helped the group work through hydrological,institutional,and financial
issues.
SPOUTILA-TIGAR0_4-NDOC 1
Representative Experience Prior to CH2M HILL
Facilitator of Contracts
Played a major role in achieving agreement on water supply contracts,joint ownership of
water supply and transmission facilities,regional water supply plans,and mutual aid
arrangements.This work has included facilitation of groups of up to 15 people.Recent
examples:
• Portland Regional Water Supply Agreement 10/2003 to 5/2006
• City of Gresharn/Rockwood Water PUD Joint Ownership and Operations Agreements,
10/2003 to 3/2006
• Regional Water Supply Plan Update,6/2004
• Clackamas River Water Wholesale Contracts,1998 to 2000
Advocacy and Facilitation
Water Utility Emergency Response Preparedness.Has advocated vulnerability evaluation
and emergency preparedriess.for water utilities including participation in the charter group
working to establish a state-wide network in Oregon.Recent examples:
• Creating Oregon Water and Wastewater Agency Response Network,9/2006 to Present
• Emergency Response Plan for City of Gresham,Oregon,Water Division,12/2004
• Vulnerability Assessment for City of Gresham and Clackamas River Water,completed
12/2004 and 12/2002,respectively
Utility Management
Staff Mentoring for High-Quality Water and Service to Customers.Set direction for a
participatory,creative,customer-focused organization.Used utility-based water quality
goals to surpass regulatory standards in a water treatment plant.Engaged customer
advisory groups for water rate design.Water and service quality ideas from this utility
experience have been shared with water utilities in Indonesia.
Stewardship—Natural and Human Resources.Instilled a sense of environmental
responsibility in employees and facilitated process evaluation and improvement activities.
Cultivated an organizational culture of innovation and creativity.
Budget and Financial Management.Led the creation of annual program-based budgets
reaching$15 million.Connected balanced scorecard approach with strategic planning to
align organizational efforts.Developed long-term financial plan to stabilize rates,led the
development of utility system charges,
Professional Organizations I Affiliations
American Water Works Association,Past Chair—Pacific Northwest Section
Honors and Awards
George Warren Fuller Award Recipient—American Water Works Association
SP IJUTLA TIGARO MDOC 2