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Red Oak Consulting ~I' Ilk remFINANCIAL CITY OF TIGARD,OREGON PERSONAL SERVICES CONTRACT a( CONSULTING SERVICES WATER RATE STUDY AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE THIS AGREEMENT made and entered into this 12th day of May, 2010 by and between the City of Tigard, a municipal corporation of the State of Oregon, hereinafter called City, and Red Oak Consulting, a Division of Malcolm Pirnie,hereinafter called Contractor. RECITALS WHREAS, the City's budget provides for services to conduct a water rate study and a water system development charge update; and W-1EREAS City has need for the services of a company wide a particular training, ability, knowledge, and experience possessed by Contractor;and WHEREAS City has determined drat 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: 1. SERVICES TO BE PROVIDED Contractor shall initiate services immediately upon receipt of City's notice to proceed and an executed copy of this Agreement. Contractor agrees to complete work that is detailed in Exhibit A, Services to Be Provided & Fee Schedule, and Exhibit B, Red Oak Consulting Proposal. These documents, by this reference, are made a part hereof widi the same legal force and effect as if set forth herein in full. Any additional work assigned by the City will be contained in subsequent scope of work as needed. 2. EFFECTIVE DATE AND DURATION This Agreement shall become effective upon die date of execution, and shall expire, unless otherwise terminated or extended, on February 28, 2011. All work under this Agreement shall be completed prior to the expiration of this Agreement. 3. COMPENSATION The City agrees to pay Contractor in accordance with Exhibit A, Section 5., "Fee Schedule," for performance of those services described herein and in any subsequent agreements that arise from the work under this Agreement. The total amount paid to the Contractor by the City shall not exceed Ninety-Two Thousand Five Hundred and Thirty-Eight Dollars ($92,538) if all tasks are completed. Any and all payments made to die Contractor shall be based upon the following applicable terns: A. Payment by City to Contractor for performance of services under this Agreement includes all expenses incurred by Contractor,with die exception of expenses identified in dnis Agreement as separately reimbursable. B. Payment will be made in installments based on Contractor's invoice, subject to the approval of die City Manager, or designee, and not more frequently than monthly. Payment shall be made only for work actually completed as of the date of invoice. Water Rate Study and Water System Development Charge Update Page 1 C. Payment by City shall release City from any further obligation for payment to Contractor, for services performed or expenses incurred as of the date of the invoice. Payment shall not be considered acceptance or approval of any work or waiver of any defects dierein. D. Contractor shall snake payments promptly, as due, to all persons supplying Labor or materials for die prosecution of this work. L. Contractor shall not permit any lien or claire to be filed or prosecuted against the City on any account of any labor or material furnished. F. Contractor shall pay to die Department of Revenue all sums withheld from employees pursuant to ORS 316.167. G. If Contractor fails, neglects or refuses to make prompt payment of any clairn for labor or services furnished to Contractor or a subcontractor by any person as such cl<airn becomes due, City's Finance Director may pay such claim and charge the amount of the payment against current or future funds due the Contractor. Tlie payment of die claire in this manner shall not relieve Contractor or their surety from obligation with respect to any unpaid claims. H. Contractor shall pay employees at least time and a half pay for all overtime worked in excess of 40 hours in any one week except for individuals under die contract who are excluded under ORS 653.010 to 653.261 or under 29 USC sections 201 to 209 from receiving overtime. I. Contractor shall promptly, as due, make payment to any person, co-partnership, association or corporation, furnishing medical, surgical and hospital care or other needed care and attention incident to sickness or injury to the employees of Contractor or all sums which Contractor agrees to pay for such services and all moneys and sums which Contractor collected or deducted from the wages of employees pursuant to any lav, contract or agreement for the purpose of providing or paying for such service. J. The City certifies that sufficient fluids are available and authorized for expenditure to finance costs of dhis contract. K. Contractor shall provide separate invoices for the water rate study and water system development charge update. 4. OWNERSHIP OF WORK PRODUCT City shall be the owner of and shall be entitled to possession of any and all work products of Contractor wlhich result from this Agreement, including any computations,plans, correspondence or pertinent data and infonnation gathered by or computed by Contractor prior to termination of this Agreement by Contractor or upon completion of the work pursuant to this Agreement. 5. ASSIGNMENT/DELEGATION Neither party shall assign, sublet or transfer any interest in or duty under this Agreement without the written consent of the other and no assignment shall be of any force or effect whatsoever unless and until the other party has so consented. If City agrees to assignment of tasks to a subcontractor, Contractor shall be fully responsible for the acts or omissions of any subcontractors and of all persons employed by them, and neither the approval by City of any subcontractor nor anything contained herein shall be deemed to create any contractual relation between the subcontractor and City. Water Rate Study and Water System Development Charge Update Page 2 6. STATUS OF CONTRACTOR AS INDEPENDENT CONTRACTOR Contractor certifies that A. 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 670.700 and not an employee of City, slizll 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. Furdiermore,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 wider the terns of this Agreement, to die 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. B. The undersigned Contractor hereby represents that no employee of die City, or any partnership or corporation in which a City employee has an interest, has or will receive any remuneration of any description from Contractor, either directly or indirectly, in connection wide the letting or performance of this Agreement, except as specifically declared in writing. If this payment is to be charged against Federal funds, Contractor certifies that he/she is not currently employed by the Federal Government and the amount charged does not exceed his or her normal charge for tie type of service provided. Contractor and its employees,if any, are not active members of the Oregon Public Employees Retirement System and are not employed for a total of 600 hours or more in the calendar year by any public employer participating in the Retirement System. C. Contractor certifies that it currently has a City business license or will obtain one prior to delivering services under this Agreement. D. Contractor is not an officer, employee, or agent of the City as diose terns are used in ORS 30.265, 7. 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 tie requirements of applicable federal, state and local laws, it being understood drat acceptance of a Contractor's work by City shall not operate as a waiver or release. Contractor agrees to indemnify and defend tie City, its officers, agents and employees and hold diem 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) that may be asserted by any person or entity which in any way arise from, during or in connection with tie performance of the work described in this contract, except liability arising out of the sole negligence of the City and its employees. Such inderxunification shall also cover claims brought against the Citi, 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 tie remainder of this indeuuhification. Water Rate Study and Water System Development Charge Update Page 3 8. INSURANCE Contractor and its subcontractors shall maintain insurance acceptable to City in full force and effect throughout the tern of this contract. Such insurance shall cover all risks arising directly or indirectly out of Contractor's activities or work hereunder, including the operations of its subcontractors of any tier. The policy or policies of insurance maintained by the Contractor and its subcontractor shall provide at least the following liunits and coverage: 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 die indemnity provided under this contract. Tlhe following insurance will be carried: Coverage Limit General Aggregate 2,000,000 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. Commercial Automobile Insurance Contractor shall also obtain, at contractor's expense, and keep in effect during the tern of tie contract, Commercial Automobile Liability coverage including coverage for all owned, hired, and non-owned vehicles. The Combined Single Limit per occurrence shall not be less than $1,000,000. C. Workers' Compensation Insurance The Contractor, its subcontractors, if any, and all employers providing work, labor, or materials under this Contract that are subject employers under the Oregon Workers' Compensation Law shall comply with ORS 656.017, which requires them to provide workers' compensation coverage that satisfies Oregon law for all their subject workers. 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 workers' compensation coverage. All non-exempt employers shall provide Employer's Liability Insurance with coverage limits of not less than $500,000 each accident. D. Additional Insured Provision The Commercial General Liability Insurance and Commercial Automobile Insurance policies and other policies tie City deems necessary shall include the City, its officers, directors, and employees as additional insureds with respect to this contract. E. Notice of Cancellation There shall be no cancellation, material change, exhaustion of aggregate lin-lits or intent not to renew insurance coverage x6thout 30-days written notice to die City. Any failure to Water Rate Study and Water System Development Charge Update Page 4 I` comply with this provision will not affect the insurance coverage provided to the City. The 30-days notice of cancellation provision shall be physically endorsed on to die policy. T. Insurance Carrier Rating Coverage 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 carriers) with an unacceptable financial rating. G. Certificates of Insurance As evidence of the insurance coverage required by the contract, the Contractor shall furinish 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 certificate will specify and document all provisions within this contract. A renewal certificate will be sent to the above address 10 days prior to coverage expiration. H. Independent Contractor Status The service or services to be rendered under this contract are diose of an independent contractor. Contractor is not an officer, employee or agent of the City as those terms are used in ORS 30.265. I. Primary Coverage Clarification The parties agree that Contractor's coverage shall be primary to the extent permitted by law. The parties furdier agree that other insurance maintained by the City is excess and not contributory insurance with the insurance required in this section. J. Cross-Liability,Clause A cross-liability clause or separation of insureds clause will be included in all general liability, professional liability, pollution and errors and omissions policies required by this contract. Contractor's insurance policy shall contain provisions that such policies shall not be canceled or their limits of liability reduced without darty (30) days prior notice to City. A copy of each insurance policy, certified as a true copy by an authorized representative of the issuing insurance company, or at the discretion of City, in lieu thereof, a certificate in form satisfactory to City certifying to the issuance of such insurance shall be forwarded to: City of Tigard Atm: Joseph Barrett,Sr. Management Analyst 13125 SW Hall Blvd. Tigard, Oregon 97223 Such policies or certificates must be delivered prior to commencement of the work. The procuring of such required insurance shall not be construed to limit Contractor's liability heretulder. Notwithstanding said insurance, Contractor shall be obligated for the total amount of any damage, injury,or loss caused by negligence or neglect connected witi this contract. 9. METHOD &PLACE OF SUBMITTING NOTICE,BILLS AND PAYMENTS All notices, bills and payments shall be made in writing and may be given by personal delivery, mail or by fax. Payments may be made by personal delivery, mail, or electronic transfer. The following addresses shall be used to trarismit notices,bills,payments,and other information: Water Rate Study and Water System Development Charge Update Page 5 1 CITY tJF TIG `ARD+ RED;(SAS CONSULTING, : it�A fDrni o>! c®z PiRrrr j Attn: John Goodrich, Utility Division Attn: Paul Matthews,Project Manager Manager Address: 13125 SW Hall Blvd. Address: 12670 NW Barnes Road, Suite 104 Tigard Oregon 97223 Portland OR 97229 Phone: (503) 718-2609 Phone: (503) 352-0900 Fax: (503) 684-8840 Fax: (503) 644-2414 Email Address: johng@dg_ard-or.gov Email Address: pmatthews(n)pirnie.com and when so addressed, shall be deemed given upon deposit in the United States mail, postage prepaid, or when so faxed, shall be deemed given upon successful fax. In all other instances, notices, bills and payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to who notices,bills and payments are to be given by giving written notice pursuant to this paragraph. 10. MERGER This writing is intended bodi as a final expression of the Agreement between the parties with respect to the included terms and as a complete and exclusive statement of the terms of the Agreement. No modification of this Agreement shall be effective unless and until it is made hi writing and signed by both parties. 11. PROFESSIONAL SERVICES The City requires that services provided pursuant to this agreement shall be provided to the City by a Contractor that does not have a conflict of interest widi City interests to the best of Contractor's knowledge and belief. Further, Contractor shall not engage services of an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests. Should the Contractor represent clients on matters contrary to City interests or engage the services on an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests, Contractor shall consult with die appropriate City representative regarding the conflict. After such consultation, the Contractor shall have seven (7) days to eliminate the conflict to die satisfaction of die City. If such conflict is not eliminated widnin the specified time period, die agreement may be terniinated pursuant to Section 13.B.3 of this agreement. 12. TERMINATION WITHOUT CAUSE At any time and without cause, City shall have the right in its sole discretion, to terminate this Agreement by giving notice to Contractor. If City terminates the contract pursuant to this paragraph,it shall pay Contractor for services rendered to the date of termination. 13. TERMINATION WITH CAUSE A. City may terminate this Agreement effective upon delivery of written notice to Contractor, or at such later date as may be established by City,under any of the following conditions: Water Rate Study and eater System Development Charge Update Page 6 1) If City funding from federal, state,local, or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services. This Agreement may be modified to accommodate a reduction in funds. 2) If federal or state regulations or guidelines are modified,changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement. 3) If any license or certificate required by lav or regulation to be held by Contractor, its subcontractors, agents, and employees to provide the services required by this Agreement is for any reason denied,revoked, or not renewed. 4) If Contractor becomes insolvent, if voluntary or involuntary petition in bankruptcy is filed by or against Contractor, if a receiver or trustee is appointed for Contractor, or if there is an assignment for the benefit of creditors of Contractor. Any such ter nination of this agreement under Section 13.A. shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination. B. City, by written notice of default (including breach of contract) to Contractor, may terminate die whole or any part of this Agreement- 1) greement1) If'Contractor fails to provide services called for by this agreement within the time specified herein or any extension thereof,or 2) If Contractor fails to perform any of the other provisions of this Agreement, or so fails to pursue the work as to endanger performance of this agreement in accordance with its terms, and after receipt of written notice from City, fails to correct such failures within ten (10) days or such other period as City may authorize, or 3) If Contractor fails to eliminate a conflict as described in Section 11 of this agreement. T1ie rights and remedies of City provided in the above clause related to defaults (including breach of contract) by Contractor shall not be exclusive and are in addition to any other tights and remedies provided by law or under dhis Agreement. If City terminates this Agreement under Section 13.B., Contractor shall be entitled to receive as full payment for all services satisfactorily rendered and expenses incurred, an amount which bears the same ratio to the total fees specified in this Agreement as the services satisfactorily rendered by Contractor bear to the total services otherwise required to be performed for such total fee, provided, that there shall be deducted from such amount the amount of damages, if any, sustained by City due to breach of contract by Contractor. Damages for breach of contract shall be those allowed by Oregon law, reasonable and necessary attorney fees, and other costs of litigation at trial and upon appeal. 14. ACCESS TO RECORDS City shall have access to such books, documents, papers and records of Contractor as are directly pertinent to taus Agreement for the purpose of snaking audit,examination, excerpts and transcripts. 15. FORCE MA ET URE Neither City nor Contractor shall be considered in default because of any delays in completion and responsibilities hereunder due to causes beyond the control and without fault or negligence on the part of the parties so disenabled, including but not restricted to, an act of God or of a public enemy, civil unrest, volcano, earthquake, fire, flood, epidemic, quarantine restriction, area-wide strike, freight Water Rate Study and Nater System Development Charge Update Page 7 Y r, embargo, unusually severe weather or delay of subcontractor or supplies due to such cause, provided that the parties so disenabled simll widhui ten (10) days from the beginning of such delay, notify die other party in writing of the cause of delay and its probable extent. Such notification shall not be the basis for a claim for additional compensation. Each party shall, however, snake all reasonable efforts to remove or eliminate such a cause of delay or default and shall, upon cessation of the cause, diligently pursue performance of its obligation under the Agreement. 16. NON-WAIVER The failure of City to insist upon or enforce strict performance by Contractor of any of the terms of this Agreement or to exercise any rights hereunder should not be construed as a waiver or relinquishment to any extent of its rights to assert or rely upon such terms or rights on any fume occasion. 17. NON-DISCRIMINATION Contractor agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statues, rules, and regulations. Contractor also shall comply with the Americans with Disabilities Act of 1990, ORS 659.425, and all regulations and administrative rules established pursuant to those laws. 18. ERRORS Contractor shall perform such additional work as may be necessary to correct errors in the work required under this Agreement without undue delays and widiout additional cost. 19. EXTRA(CHANGES) RK Only the City's Utility Division Manager,John Goodrich, may audiorize extra (and/or change) worn:. Failure of Contractor to secure authorization for extra work shall constitute a waiver of all light to adjustment in the contract price or contract time due to such unauthorized extra work and Contractor thereafter shall be entitled to no compensation whatsoever for the performance of such work. 20. WARRANTIES All wort:shall be guaranteed by Contractor for a period of one year after the date of final acceptance of the work by the owner. Contractor warrants drat all practices and procedures, workmanship and materials shall be in accordance with generally accepted professional practices and standards. Neither acceptance of die work nor payment therefore shall relieve Contractor from liability under warranties contained in or implied by dais Agreement. 21. ATTORNEY'S FEES In case suit or action is instituted to enforce the provisions of this contract, die parties agree that the losing party shall pay such sum as die court may adjudge reasonable attorney fees and court costs, including attorney's fees and court costs on appeal. 22. GOVERNING LAW The provisions of dais Agreement shall be construed in accordance widi die provisions of die laws of the State of Oregon. Any action or suits involving any question arising under this Agreement must be brought in the appropriate court of the State of Oregon. 23. COMPLIANCE WITH STATE AND FEDERAL LAWS/RULES Contractor shall comply wid1 all applicable federal, state and local laws, rules and regulations, including, but not limited to, the requirements concerning working hours, overtime, medical care, workers compensation insurance, health care payments, payments to employees and subcontractors Water Rate Study and Water System Development Charge Update Page 8 and income tax withholding contained in ORS Chapter 279B, the provisions of which are hereby made a part of this agreement. 24. CONFLICT BETWEEN TERMS It is agreed by and between the Parties that should there be any conflict between the terms of this Agreement and Exhibit B, the Contractor's proposal, this Agreement shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. It is further expressly agreed by and between the Parties that should there be any conflict between the terms of Exhibit A, Services to Be Provided & Fee Schedule, and Exhibit B, the Contractor's proposal, Exhibit A shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewidi. 25. AUDIT Contractor shall maintain records to assure conformance with the terns and conditions of this Agreement, and to assure adequate performance and accurate expenditures within the contract period. Contractor agrees to permit City, the State of Oregon, the federal government, or their duly authorized representatives to audit all records pertaining to this Agreement to assure the accurate expenditure of funds. 26. SEVERABILITY In the event any provision or portion of this Agreement is held to be unenforceable or invalid by any court of competent jurisdiction, the validity of the remaining terms and provisions shall not be affected to the extent that it did not materially affect the intent of the parties when they entered into the agreement. 27. CONDITIONS OF SUPPLYING A PUBLIC AGENCY Where applicable, seller must make payment promptly as due to persons supplying Contractor labor or materials for tie execution of die 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 fihrtlher agrees to pay to the Department of Revenue all sums withheld fiom employees pursuant to ORS 316.167. 28. HOURS OF LABOR If labor is performed under this order, then no person shall be employed for more than eight (8) hours in any one day, or forty (40) hours in any one week, except in cases of necessity, or emergency or where the public policy absolutely requires it, and in such cases, except cases of contracts for personal services as defined in ORS 279A.055, the labor shall be paid at least time and a half for all overtime in excess of eight (8) hours a day and for all work performed on Saturday and on any legal holidays as specified in ORS 279C.540. In cases of contracts for personal services as defined in ORS 279A.055, any labor shall be paid at least time and a half for all hours worked in excess of forty (40) hours in any one week, except for those individuals excluded under ORS 653.010 to 653.260 or under 29 USC SS 201-209. 29. COMPLETE AGREEMENT This Agreement and attached exhibits constitute tie 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 tie Water Rate Study and Plater System Development Charge Update Page 9 signature of its authorized representative, hereby acknowledges that lie has read this Agreement, understands it and agrees to be bound by its terms and conditions. IN WITNESS WHEREOF, City has caused dhis Agreement to be executed by its duly authorized undersigned officer and Contractor has executed this Agreement on the date hereinabove first written. Authorized by Tigaid's Local Contact Review Board: May 11,2010 City o i rd Red Oak Consulting, A division ofMalcolm Pirnie QPxOA�-, Paul L. Matthews By: Craig P sser, Lty Manager By: Autho ' ed Agent of Contractor June 1, 2010 Date Date Water Rate Study and Water System Development Charge Update Page 10 EXHIBIT A SERVICES TO BE PROVIDED&FEE SCHEDULE FINANCIAL CONSULTING SERVICES WATER RATE STUDY AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE 1. INTRODUCTION The City of Tigard's water service area includes approximately two-thirds of the City of Tigard, the Cities of Durham and King City, and unincorporated areas of Washington County represented by the Tigard Water District. This area is identified as the Tigard Water Service Area (TWSA). The City of Tigard serves as the water provider and managing authority for the TWSA through intergovernmental agreements with the Cities of Durham and King City, and the Tigard Water District. All fees and charges and the level of water service are the same for customers within the TWSA, irrelevant of jurisdiction. Areas of Tigard not served by the City receive water service from the Tualatin Valley Water District (TVWD). The City estimates it provides drinking water to approximately 57,500 people within the TWSA through 17,890 residential, multi-family, irrigation, commercial, and industrial water service connections. Water customers are currently billed once every two months. The requested financial services will assist the City in developing a water fees and charges schedule by conducting a water rate study, and updating the water system development charge (SDC) methodology. The work shall establish the necessary revenue requirements to implement the 2010 Water System Master Plan which forecasts through 2030. The plan includes the most recent capital maintenance and improvement projects. There will also be funding requirements for the capital improvements related to the Lake Oswego-Tigard Water Partnership. General information regarding die partnership can be found at .v,�vw.lotig.2rdwater.org. Tigard's financial commitment to partnership projects is estimated to be $118 million dollars. The City desires review of various rate structures,with a subsequent recommendation of setting the water fees and charges in order to meet die City's financial obligations. The City also needs a comprehensive water SDC update that identifies and allocates funding associated with excess capacity and new construction.The current SDC methodology was last updated in 2000. 2. WATER RATE STUDY SCOPE AND SCHEDULE OF WORK A. DATA REQUEST The Contractor will submit, in writing, a data request list in sufficient time for the City to prepare the material for the pre-services meeting. B. PRE-SERVICES MEETING/DATA REQUEST The Contractor will arrange for a pre-services meeting with City staff to set a course for the work to be completed and to establish a clear understanding of die water rate study analysis tasks and completion schedule. This meeting may be conducted in conjunction with the pre-services meeting for tie water SDC update. This meeting will also serve as an information exchange, with tie Contractor collecting all necessary data. Water Rate Study and Witer System Development Charge Update Page 11 I { C. WATER RATE STUDY PROJECT SCOPE The Contractor will recommend a water fees and charges schedule and a test period. This recommendation will be considered by the Intergovernmental Water Board gWB) and Tigard City Council. The schedule shall establish the projected revenue requirements necessary to ensure an adequate cash flow in a stable and predictable manner. This proposal should use the following assumptions regarding appropriate financial policy and project scope of work requirements. 1. A fair and equitable fees and charges schedule that ensures water services are provided on a self- supporting basis. 2. Adequate funding for capital projects as identified in the 2010 Water System Master Plan. 3. Encourage water conservation consistent with Oregon Water Resources Department requirements. 4. Identify and develop the strategies and schedule necessary to acquire bond financing to fund future projects from the City's water capital improvement plan and the Lake Oswego-Tigard Water Partnership. 5. Analyze and develop a cost-benefit analysis of utility billing frequency to adequately meet cash flow requirements. 6. Review and update all current and recommended non-commodity fees and charges associated with water service. 7. Analyze and develop recommendations regarding what level of adequate fund reserves would be necessary to meet the City's needs. 8. Compare any proposed new water fees and charges to other utilities providing water services in the county and region. 9. The recomrnended rate structures shall be consistent with industry practice for utility rate making in Oregon. 10. The benefits of any proposed modifications shall be weighed against the financial impacts on ratepayers, and separated by rate classifications such as residential, multi-family, commercial, industrial, and irrigation,etc. 11. Justifications for any special classes of customers under the recornmended water fees and charges schedule shall be demonstrated. 12. Any recornmended rate structure or rate model should take into consideration die ease of administration and understanding by die rate payers. 13. Any proposed water fees and charges schedule must integrate with dne City's utility billing system. 14. Analyze and develop die appropriate test period for the recommended water fees and charges schedule. 15. The rate study shall include a user-friendly electronic rate model, in either Microsoft Excel or Access,which enables the City to calculate future water fees and charges. D. WATER RATE ANALYSIS AND REPORT With regard to water fees and charges recommendations, the water rate study shall include a final report that explicitly includes die following elements and analysis: 1. Current Rate Structure: Assess dne current water fees and charges performance as a baseline for comparing recommended changes. 2. Equity: Assess dne equity of recommended water fees and charges for all types of property ownership to include multi-family units. Water Rate Study and Water System Development Charge Update Page 12 3. Conservation Impacts: Assess the interaction between the water conservation elements of the recommended water fees and charges, and their impacts on die ability to fund water operations and capital projects including those associated-with die Lake Oswego-Tigard Water Partnership. 4. Other Service Charges: Assess existing customer service fees and charges and identify other potential areas for service and system charges (service activities, back-flow devices, plan reviews, water service shut-offs, delinquent payment, reconnection fees, etc.) and recommend changes, if appropriate. Assessment is to note any resulting increase in liability the City may incur as a result of approving and assessing these fees and charges. 5. Annual Operating Fund Balance Targets: Recommend adequate reserve levels for operating cash flow, capital replacement, bond requirements, and unforeseen events. 6. Electronic Rate Model: Provide a user-friendly electronic rate model, in either Microsoft Excel or Access,which enables die City to calculate future water fees and charges. 7. Rate Sensitivity Analysis and Affordability Index: Provide a rate sensitivity analysis and affordability index ratio regarding die recommended water fees and charges schedule. This analysis should consider TWSA demographics relating to the household income level, and the types of residential, multi-family,commercial, and industrial accounts. This shall include impacts to public authorities such as schools,parks, etc. 8. Rate Payer Education/Communications: Recommend mediods for communicating utility costs to customers, including changes in the utility billing structure and identifying the actual costs of providing -eater under the recommended fees and charges schedule. Assess ease of communication associated with each recommended type of water fee and charge. 9. Cost Analysis of Tigard Expansion: Provide a cost-benefit analysis on the expansion of die City's water services into developed and undeveloped areas adjacent to the current service area. E. WATER RATE STUDY SUMMARY OF SERVICES At the conclusion of the project, the Contractor shall provide a draft report for the City's review. The report shall summarize the methodology and analysis undertaken in completing die -eater rate study findings, including the results, conclusions, and recommendations. The report shall be detailed and shall include a proposed water commodity structure, rates, user fees, user charges, etc. The report shall provide implementation recommendations in a "ready-to-adopt" format including calculation tables. The Contractor shall propose the number of hours and fee estimate based on the following assumptions: 1. Conduct a detailed review of the existing-eater rates and status of the Water Fund. Develop a general familiarity with die City's utility billing system. 2. Meet-with City's financial advisor to confer and discuss recommendations addressing financial and future bond issuance requirements. 3. Supply a time schedule for developing the preliminary and final reports. 4. Prepare for and attend six (6) evening meetings: a. Project Introduction presentation to tie Intergovernmental Water Board (IWB) and the Tigard City Council. This 30-minute presentation is scheduled for the evening of June 15, 2010. b. Fees and Charges Options presentation to obtain preferred option(s) for further evaluation based on findings. Presentation will be given to the Intergovernmental Water Board (IWB) and, separately, to the City Council. c. Preliminary Report presentation based on final recommendations. This presentation will be given to the IWB and, separately, to the City Council. Water Rate Study and Water System Development Charge Update Page 13 d. Final Report presentation detailing, and considering for adoption, the water rate schedule of fees and charges. This presentation will take place at a City Council meeting and will include a public hearing. 5. Meet with City staff to review findings. G. Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format, with spreadsheets in Excel format. 7. Final Report and presentation requirements: a. City staff shall review and approve all work prior to fugal acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public nodfication(s) suintmarizing analyses and recommendations. Notices will be distributed by the City. c. Incorporate changes pursuant to comments received City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 copies, plus one reproducible copy, and an electronic storage disc with fugal report in MS Word format, with spreadsheets in Excel format. 8. Provide a user-friendly electronic rate model, in either Microsoft Excel or Access, which enables the City to re-calculate future water fees and charges. 9. All work related to the water rate study, including the final report, will be completed and submitted to the City's Utility Division Manager, John Goodrich, in a ready-to- adopt format by October 19, 2010. 3. WATER SYSTEM DEVELOPMENT CHARGE (SDC) UPDATE SCOPE AND SCHEDULE OF WORI{ A. DATA REQUEST The Contractor will submit, in writing, a data request list in sufficient time for the City to prepare the material for the pre-services meeting. B. PRE-SERVICES MEETING/DATA REQUEST The Contractor will arrange for a pre-services meeting with City staff to collect and discuss initial data, review die work plan and schedule, discuss policy and technical issues, and 'initiate the study. This meeting may be conducted iu conjunction with the water rate study pre-services meeting. C. SDC UPDATE PROJECT SCOPE The Contractor shall provide fuiancial consulting services including: 1. Review of City's financial data and 2010 Water System blaster Plan. 2. Preparation of the SDC methodology evaluation and analysis. 3. Calculation of revised fees and charges for the water utility. The Contractor shall include recominendadons regarding aspects beneficial to the City pertaining to SDC update methods. D. SDC UPDATE SUMMARY OF SERVICES At the conclusion of the project, the Contractor shall provide a draft report for the City's review. The report shall summarize die methodology and analysis undertaken in completing the water SDC Water Rate Study and Water System Development Charge Update Page 14 .. k update fundings including the results, conclusions, and recommendations. The report shall provide implementation recommendations in a "ready-to-adopt" format including calculation tables. The Contractor shall propose the number of hours and fee estimate based on the following assumptions: 1. Develop and complete the technical analyses with City staff and other engineering consultants: a. Use the SDC project list supplied in the 2010 Water System Master Plan. Review the list of projects and costs and use as die initial improvements fees and charges basis. b. The Contractor will be provided information regarding allocation of project costs to growth. Using information provided in the 2010 Water System Master Plan and the input of City staff, the Contractor will include the capacity-increasing portion of each project for the improvement fee. This shall serve as the improvement fee cost basis. c. Determine the reimbursement fee cost basis (if applicable). Using the City's asset information and the policy input from the pre-services meeting, the Contractor will establish the amount of eligible unused capacity in the existing water system for use in the calculation of the SDC reimbursement fees. d. Determine appropriate SDC allocation to any portion of the capital construction necessary for the Lake Oswego-Tigard Water Partnership. e. Calculate the improvement fee from information on the eligible cost of planned future facilities. Calculate the reimbursement fee, as applicable, from information on the cost of unused capacity in existing infrastructure. 2. Supply a time schedule for developing the preliminary and final reports. 3. Prepare for and attend up to six (6) evening meetings tividn the Intergovernmental Water Board (IWB) and/or the City Council to solicit input, describe Contractor recommendations, and participate in a public hearing on die adoption of updated SDC methodology. These meetings shall be scheduled in conjunction with the water rate study meetings described in section 4.1 E.4. 4. Meet with City staff to review findings. 5. Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format, with spreadsheets in Excel format. 6. Final Report and presentation requirements: a. City staff shall review and approve all work prior to final acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public notification(s) summarizing analyses and recommended changes. Notices will be distributed by the City. c. Incorporate changes pursuant to comments received by staff and City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 hard copies, one reproducible copy, and an electronic storage disc with final report in MS Word format,-%vidn spreadsheets in Excel format. 7. Provide a user-friendly electronic SDC methodology,in either Microsoft Excel or Access, which enables the City to re-calculate future SDCs. 8. All work related to the water SDC study, including the final report, will be completed and submitted to the City's Utility Division Manager, John Goodrich, in a ready-to- adopt format by August 31, 2010. Water Rate Study and Water System Development Charge Update Page'15 4. ADDITIONAL INFORMATION SCOPE AND SCHEDULE OF WORK A. SERVICES PROVIDED BY THE CITY TI-ie information to be provided by the City shall include, but is not necessarily limited to die following: 1. SDC-related documents and information as available. 2. E Listing water rate fees and charges 3. The 2010 Water System Master Plan and adopted SDC project list. 4. Current development status and projected build out figures. 5. Financial information regarding balance of water utility SDC accounts and status of outstanding SDC credits,if any. G. Oilier information, as available, regarding water usage, water production, billing data, annual budget requirements, wholesale water purchase agreements, and information specified by the Contractor relating to data required to conduct adequate analysis of the financial revenue requirements. 5. FEE SCHEDULE—See Attached Pages Water Rate Study and Nater System Development Charge Update Page 16 V CITY OF TIGARD,OREGON PERSONAL SERVICES CONTRACT FINANCIAL CONSULTING SERVICES WATER RATE STUDY AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE THIS AGREEMENT made and entered into this 12th day of May, 2010 by and between the City of Tigard, a municipal corporation of the State of Oregon, hereinafter called City, and Red Oak Consulting, a Division of Malcolm Pimie,hereinafter called Contractor. RECITALS WHREAS, the City's budget provides for services to conduct a water rate study and a water system development charge update;and WHEREAS City has need for the services of a company with a particular training, ability, knowledge, and experience possessed by Contractor;and WHEREAS 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: 1. SERVICES TO BE PROVIDED Contractor shall initiate services immediately upon receipt of City's notice to proceed and an executed copy of this Agreement. Contractor agrees to complete work that is detailed in Exhibit A, Services to Be Provided & Fee Schedule, and Exhibit B, Red Oak Consulting Proposal. These documents, by this reference, are made a part hereof with the same legal force and effect as if set forth herein in full. Any additional work assigned by the City will be contained in subsequent scope of work as needed. 2. EFFECTIVE DATE AND DURATION This Agreement shall become effective upon the date of execution, and shall expire, unless otherwise terminated or extended, on February 28,2011. All work under this Agreement shall be completed prior to the expiration of this Agreement. 3. COMPENSATION The City agrees to pay Contractor in accordance with Exhibit A, Section 5., "Fee Schedule," for performance of those services described herein and in any subsequent agreements that arise from the work under this Agreement. The total amount paid to the Contractor by the City shall not exceed Ninety-Two Thousand Five Hundred and Thirty-Eight Dollars ($92,538) if all tasks are completed. Any and all payments made to the Contractor shall be based upon the following applicable terms: A. Payment by City to Contractor for performance of services under this Agreement includes all expenses incurred by Contractor,with the exception of expenses identified in this Agreement as separately reimbursable. B. Payment will be made in installments based on Contractor's invoice, subject to the approval of the City Manager, or designee, and not more frequently than monthly. Payment shall be made only for work actually completed as of the date of invoice. Water Rate Study and Water System Development Charge Update Page 1 C. Payment by City shall release City from any further obligation for payment to Contractor, for services performed or expenses incurred as of the date of the invoice. Payment shall riot be considered acceptance or approval of any work or waiver of any defects therein. D. Contractor shall make payments promptly, as due, to all persons supplying labor or materials for the prosecution of this work. E. Contractor shall not permit any lien or claim to be filed or prosecuted against the City on any account of any labor or material furnished. F. Contractor shall pay to the Department of Revenue all sums withheld from employees pursuant to ORS 316.167. G. If Contractor fails, neglects or refuses to make prompt payment of any claim for labor or services furnished to Contractor or a subcontractor by any person as such claim becomes due, City's Finance Director may pay such claim and charge the amount of the payment against current or future funds due the Contractor. The payment of the claim in this manner shall not relieve Contractor or their surety from obligation with respect to any unpaid claims. H. Contractor shall pay employees at least time and a half pay for all overtime worked in excess of 40 hours in any one week except for individuals under the contract who are excluded under ORS 653.010 to 653.261 or under 29 USC sections 201 to 209 from receiving overtime. L Contractor shall promptly, as due, make payment to any person, co-partnership, association or corporation, furnishing medical, surgical and hospital care or other needed care and attention incident to sickness or injury to the employees of Contractor or all sums which Contractor agrees to pay for such services and all moneys and sums which Contractor collected or deducted from the wages of employees pursuant to any law, contract or agreement for the purpose of providing or paying for such service. J. The City certifies that sufficient funds are available and authorized'for expenditure to finance costs of this contract. K. Contractor shall provide separate invoices for the water rate study and water system development charge update. 4. 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. 5. ASSIGNMENT/DELEGATION Neither party shall assign, sublet or transfer any interest in or duty under this Agreement without the written consent of the other and no assignment shall be of any force or effect whatsoever unless and until the other party has so consented. If City agrees to assignment of tasks to a subcontractor, Contractor shall be fully responsible for the acts or omissions of any subcontractors and of all persons employed by them, and neither the approval by City of any subcontractor nor anything contained herein shall be deemed to create any contractual relation between the subcontractor and City. Water Rate Study and Water System Development Charge Update Page 2 C. Payment by City shall release City from any further obligation for payment to C'oiitractor, for services performed or expenses incurred as,of the date of the invoice. Payment shall;,not be considered acceptance or approval of any work or waiver of any defects therein: D. Contractor shall make payments promptly, as due, to all persons supplying labor or materials for the prosecution of this work. E. Contractor shall not permit any lien or claim to be filed,or,prosecuted against the City on any account of any labor or material furnished. F. Contractor.shall pay to the Department of Revenue all sums withheld from employees pursuant to ORS 316.167. G. If Contractor fails, neglects or refuses to make prompt payment of any claim for labor or services furnished to Contractor or a subcontractor by any person,as such claim becomes due, City's Finance Director may pay such claim and charge the amount of the payment against current or future funds due the Contractor. The payment of the clairn.in this manner shallnot relieve Contractor or their surety from obligation with respect to any unpaid claims. H. Contractor shall pay employees at least time and a half pay for all overtime worked in excess of 40 hours in any one week except for individuals under the contract who are excluded under ORS 653.010 to 653.261 or under 29 USC sections 201,to 209 from.receiving overtime. I. Contractor shall promptly, as due, make payment to any person, co-partnership, association or corporation, fin fishing medical, surgical and hospital care,or other needed care and attention incident to sickness or injury to the employees of_Contractor or all sums which Contractor agrees to pay for such services and all moneys and sums which Contractor collected or deducted from'the wages of employees pursuant to any law, contract or agreement for the purpose of providing or paying for such service. J. The City certifies that sufficient funds are available.and authorized for expenditure to finance costs of this contract K. Contractor shall provide separate invoices for the water rate study and water system development charge update. 4. 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. 5. ASSIGNMENT/DELEGATION Neither party shall assign, sublet or transfer any interest in or duty under this Agreement without the written consent of the other and no assignment shall be of any force or effect whatsoever unless and until the other party has so consented. If City agrees to assignment of tasks to a subcontractor, Contractor shall be fully responsible,for the acts or omissions of any subcontractors and of all persons employed by them, and neither the approval by City of any subcontractor, nor anything contained herein shall be deemed to create any contractual relation between the subcontractor and City. Water Rate Study and Water System Development Charge Update Page 2 6. STATUS OF CONTRACTOR AS INDEPENDENT CONTRACTOR Contractor certifies that: A. 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 670.700 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. B. The undersigned Contractor hereby represents that no employee of the City, or any partnership or corporation in which a City employee has an interest,has or will receive any remuneration of any description from Contractor, either directly or indirectly, in connection with the letting or performance of this Agreement,except as specifically declared in writing. If this payment is to be charged against Federal funds, Contractor certifies that he/she is not currently employed by the Federal Government and the amount charged does not exceed his or her normal charge for the type of service provided. Contractor and its employees, if any, are not active members of the Oregon Public Employees Retirement System and are not employed for a total of 600 hours or more in the calendar year by any public employer participating in the Retirement System. C. Contractor certifies that it currently has a City business license or will obtain one prior to delivering services under this Agreement. D. Contractor is not an officer, employee, or agent of the City as those terms are used in ORS 30.265. 7. 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 agrees to indemnify and defend the City, its 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) that may be asserted by any person or entity which in any way arise from, during or in connection with the performance of the work described in this contract, except liability arising out of the sole negligence of the City and its employees. Such indemnification 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. Water Rate Study and Water System Development Charge Update Page 3 8. INSURANCE Contractor and its subcontractors 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, including the operations of its subcontractors of any tier. The policy or policies of insurance maintained by the Contractor and its subcontractor shall provide at least the following limits and coverage: 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 2,000,000 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. Commercial Automobile Insurance Contractor shall also obtain, at contractor's expense, and keep in effect during the term of the contract, Commercial Automobile Liability coverage including coverage for all owned, hired, and non-owned vehicles. The Combined Single Limit per occurrence shall not be less than $1,000,000. C. Workers' Compensation Insurance The Contractor, its subcontractors, if any, and all employers providing work, labor, or materials under this Contract that are subject employers under the Oregon Workers' Compensation Law shall comply with ORS 656.017, which requires them to provide workers' compensation coverage that satisfies Oregon law for all their subject workers. 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 workers' compensation coverage. All non-exempt employers shall provide Employer's Liability Insurance with coverage limits of not less than $500,000 each accident. D. Additional Insured Provision The Commercial General Liability Insurance and Commercial Automobile Insurance policies and other policies the City deems necessary shall include the City, its officers, directors, and employees as additional insureds with respect to this contract. E. Notice of Cancellation There shall be no cancellation, material change, exhaustion of aggregate limits or intent not to renew insurance coverage without 30-days written notice to the City. Any failure to Water Rate Study and Water System Development Charge Update Page 4 8. INSURANCE Contractor and its subcontractors shall maintain insurance acceptable to City in full force and effect throughout the term of this contract. Such insurance shallcover all,risks arising directly or indirectly out of Contractor's activities or work hereunder, including the operations of its subcontractors of any tier. The policy or policies of insurance maintained by the Contractor and its subcontractor shall provide at least the following limits and coverage: 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 2,000,000 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. Commercial Automobile Insurance Contractor shall also obtain, at contractor's expense, and keep in effect during the term of the. contract, Commercial Automobile Liability coverage including coverage for all,owned, hired, and non-owned vehicles. The Combined Single Limit per occurrence shall not be less than$1,000,000. C. Workers' Compensation Insurance The Contractor, its subcontractors, if any, and all employers providing work, labor, or materials under this Contract that are subject employers. under the Oregon Workers! Compensation Law shall comply with ORS656.017, which requires them, to provide workers' compensation coverage that satisfies Oregon,law for all their subject workers. 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 workers' compensation coverage. All non-exempt employers shall provide Employer's Liability Insurance with coverage limits of not less than$500,000 each,accident. Q. Additional Insured Provision The Commercial General Liability Insurance and Commercial Automobile Insurance policies and other policies the City deems necessary shall include the City, its officers, directors, and employees as additional insureds with respect to this contract. E: Notice of Cancellation There shall be no cancellation, material change, exhaustion of aggregate limits or intent not to renew insurance coverage without 30-days written notice to the City. Any failure to Water Rate Study and Water System Development Charge Update Page 4 comply with this provision will not affect the insurance coverage provided to the City. The 30-days notice of cancellation provision shall be physically endorsed on to the policy. F. Insurance Carrier Rating Coverage 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. G. 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 certificate will specify and document all provisions within this contract. A renewal certificate will be sent to the above address 10 days prior to coverage expiration. H. Independent Contractor Status The service or services to be rendered under this contract are those of an independent contractor. Contractor is not an officer, employee or agent of the City as those terms are used in ORS 30.265. I. Primary Coverage Clarification The parties agree that Contractor's coverage shall be primary to the extent permitted by law. The parties further agree that other insurance maintained by the City is excess and not contributory insurance with the insurance required in this section. J. Cross-Liability Clause A cross-liability clause or separation of insureds clause will be included in all general liability, professional liability,pollution and errors and omissions policies required by this contract. Contractor's insurance policy shall contain provisions that such policies shall not be canceled or their limits of liability reduced without thirty (30) days prior notice to City. A copy of each insurance policy, certified as a true copy by an authorized representative of the issuing insurance company, or at the discretion of City, in lieu thereof, a certificate in form satisfactory to City certifying to the issuance of such insurance shall be forwarded to: City of Tigard Attn: Joseph Barrett,Sr. Management Analyst 13125 SW Hall Blvd. Tigard, Oregon 97223 Such policies or certificates must be delivered prior to commencement of the work. 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. 9. METHOD & PLACE OF SUBMITTING NOTICE,BILLS AND PAYMENTS All notices, bills and payments shall be made in writing and may be given by personal delivery, mail or by fax. Payments may be made by personal delivery, mail, or electronic transfer. The following addresses shall be used to transmit notices,bills,payments,and other information: Water Rate Study and Water System Development Charge Update Page 5 CITY,OF TIGARD RED OAK CONSULTING, A DIVISION OF MALCOLM PIRNIE Attn: John Goodrich, Utility Division Attn: Paul Matthews,Project Manager Manager Address: 13125 SW Hall Blvd. Address: 12670 NW Barnes Road, Suite 104 Tigard Oregon 97223 Portland OR 97229 Phone: (503) 718-2609 Phone: (503) 352-0900 Fax: (503) 684-8840 Fax: (503) 644-2414 Email Address: iohng&igard-or.gov Email Address: 12matthews@12irnie.com and when so addressed, shall be deemed given upon deposit in the United States mail,postage prepaid, or when so faxed, shall be deemed given upon successful fax. In all other instances, notices, bills and payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to who notices,bills and payments are to be given by giving written notice pursuant to this paragraph. 10. MERGER This writing is intended both as a final expression of the Agreement between the parties with respect to the included terms and as a complete and exclusive statement of the terms of the Agreement. No modification of this Agreement shall be effective unless and until it is made in writing and signed by both parties. 11. PROFESSIONAL SERVICES The City requires that services provided pursuant to this agreement shall be provided to the City by a Contractor that does not have a conflict of interest with City interests to the best of Contractor's knowledge and belief. Further, Contractor shall not engage services of an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests. Should the Contractor represent clients on matters contrary to City interests or engage the services on an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests, Contractor shall consult with the appropriate City representative regarding the conflict. After such consultation, the Contractor shall have seven (7) days to eliminate the conflict to the satisfaction of the City. If such conflict is not eliminated within the specified time period, the agreement may be terminated pursuant to Section 13.B.3 of this agreement. 12. TERMINATION WITHOUT CAUSE At any time and without cause, City shall have the right in its sole discretion, to terminate this Agreement by giving notice to Contractor. If City terminates the contract pursuant to this paragraph,it shall pay Contractor for services rendered to the date of termination. 13. TERMINATION WITH CAUSE A. City may terminate this Agreement effective upon delivery of written notice to Contractor, or at such later date as may be established by City,under any of the following conditions: Water Rate Study and Water System Development Charge Update Page 6 � ,�,� .��,� �'� �r.� �,� .� �x.,.�s-�, 0 ��' u 1 ]D r .�' SSR Attn: John Goodrich, Utility Division Atm: Paul Matthews, Project Manager Manager Address: 13125 SW Hall Blvd. Address: 12670 NWBarnes Road, Suite 104 Tigard Oregon 97223 Portland OR 97229 Phone: (503) 718-2609 Phone: (503) 352-0900 Fax: (503) 684-8840 Fax: (503) 644-2414 Email Address: iohng@tigard-or.gov Email Address: pmatthewsLpirnie.com and when so addressed, shall be deemed given upon deposit in the United States mail,postage prepaid, or when so faxed, shall be deemed given upon successful fax. In all other instances, notices, bills and payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to who notices,bills and payments are to be given by giving written notice pursuant to this paragraph. 10'. MERGER This writing is intended both as a final expression of the Agreement between the parties with respect to the included terms and as a complete and exclusive statement of the terms of the Agreement. No modification of this Agreement shall be effective unless and until it is made in writing and signed by both parties. 11. PROFESSIONAL SERVICES The City requires that services provided pursuant to this agreement shall be provided to the City by a Contractor that does not have a conflict of interest with City interests to the best of Contractor's knowledge and belief. Further, Contractor shall not engage services of an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests. Should the Contractor represent clients on matters contrary to City interests or engage the services on an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests, Contractor shall consult with the appropriate City representative regarding the conflict. After such consultation, the Contractor shall have seven (7) days to eliminate the conflict to the satisfaction of the City. If such conflict is not eliminated within the specified time period, the agreement may be terminated pursuant to Section 13.B.3 of this agreement. 12. TERMINATION WITHOUT CAUSE At any time and without cause, City shall have the right in its sole discretion, to terminate this Agreemenf by giving notice to Contractor. If City terminates the contract pursuant to this paragraph,it shall pay Contractor for services rendered to the date of termination. 13. TERMINATION WITH CAUSE A. City may terminate this Agreement effective upon delivery of written notice to Contractor, or at such later date as may be established by City,under any of the following conditions: Water Rate Study and Water System Development Charge Update Page 6 1) If City funding from federal, state,local, or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services. This Agreement may be modified to accommodate a reduction in funds. 2) If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement. 3) If any license or certificate required by law or regulation to be held by Contractor, its subcontractors, agents, and employees to provide the services required by this Agreement is for any reason denied,revoked, or not renewed. 4) If Contractor becomes insolvent, if voluntary or involuntary petition in bankruptcy is filed by or against Contractor, if a receiver or trustee is appointed for Contractor, or if there is an assignment for the benefit of creditors of Contractor. Any such termination of this agreement under Section 13.A. shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination. B. City, by written notice of default (including breach of contract) to Contractor, may terminate the whole or any part of this Agreement: 1) If Contractor fails to provide services called for by this agreement within the time specified herein or any extension thereof,or 2) If Contractor fails to perform any of the other provisions of this Agreement, or so fails to pursue the work as to endanger performance of this agreement in accordance with its terms, and after receipt of written notice from City, fails to correct such failures within ten (10) days or such other period as City may authorize, or 3) If Contractor fails to eliminate a conflict as described in Section 11 of this agreement. The rights and remedies of City provided in the above clause related to defaults (including breach of contract) by Contractor shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. If City terminates this Agreement under Section 13.B., Contractor shall be entitled to receive as full payment for all services satisfactorily rendered and expenses incurred, an amount which bears the same ratio to the total fees specified in this Agreement as the services satisfactorily rendered by Contractor bear to the total services otherwise required to be performed for such total fee, provided, that there shall be deducted from such amount the amount of damages, if any, sustained by City due to breach of contract by Contractor. Damages for breach of contract shall be those allowed by Oregon law, reasonable and necessary attorney fees, and other costs of litigation at trial and upon appeal. 14. ACCESS TO RECORDS City shall have access to such books, documents, papers and records of Contractor as are directly pertinent to this Agreement for the purpose of making audit,examination, excerpts and transcripts. 15. FORCE MNEURE Neither City nor Contractor shall be considered in default because of any delays in completion and responsibilities hereunder due to causes beyond the control and without fault or negligence on the part of the parties so disenabled, including but not restricted to, an act of God or of a public enemy, civil unrest, volcano, earthquake, fire, flood, epidemic, quarantine restriction, area-wide strike, freight Water Rate Study and Water System Development Charge Update Page 7 embargo, unusually severe weather or delay of subcontractor or supplies due to such cause, provided that the parties so disenabled shall within ten (10) days from the beginning of such delay, notify the other party in writing of the cause of delay and its probable extent. Such notification shall not be the basis for a claim for additional compensation. Each party shall,however, make all reasonable efforts to remove or eliminate such a cause of delay or default and shall, upon cessation of the cause, diligently pursue performance of its obligation under the Agreement. 16. NON-WAIVER The failure of City to insist upon or enforce strict performance by Contractor of any of the terms of this Agreement or to exercise any rights hereunder should not be construed as a waiver or relinquishment to any extent of its rights to assert or rely upon such terms or rights on any future occasion. 17. NON-DISCRIMINATION Contractor agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statues, rules, and regulations. Contractor also shall comply with the Americans with Disabilities Act of 1990, ORS 659.425, and all regulations and administrative rules established pursuant to those laws. 18. ERRORS Contractor shall perform such additional work as may be necessary to correct errors in the work required under this Agreement without undue delays and without additional cost. 19. EXTRA(CHANGES)WORK Only the City's Utility Division Manager,John Goodrich, may authorize extra (and/or change) work. Failure of Contractor to secure authorization for extra work shall constitute a waiver of all right to adjustment in the contract price or contract time due to such unauthorized extra work and Contractor thereafter shall be entitled to no compensation whatsoever for the performance of such work. 20. WARRANTIES All work shall be guaranteed by Contractor for a period of one year after the date of final acceptance of the work by the owner. Contractor warrants that all practices and procedures, workmanship and materials shall be in accordance with generally accepted professional practices and standards. Neither acceptance of the work nor payment therefore shall relieve Contractor from liability under warranties contained in or implied by this Agreement. 21. ATTORNEY'S FEES In case suit or action is instituted to enforce the provisions of this contract, the parties agree that the losing party shall pay such sum as the court may adjudge reasonable attorney fees and court costs, including attorney's fees and court costs on appeal. 22. GOVERNING LAW The provisions of this Agreement shall be construed in accordance with the provisions of the laws of the State of Oregon. Any action or suits involving any question arising under this Agreement must be brought in the appropriate court of the State of Oregon. 23. COMPLIANCE WITH STATE AND FEDERAL LAWS/RULES Contractor shall comply with all applicable federal, state and local laws, rules and regulations, including, but not limited to, the requirements concerning working hours, overtime, medical care, workers compensation insurance, health care payments, payments to employees and subcontractors Water Rate Study and Water System Development Charge Update Page 8 i embargo, unusually severe weather or delay of subcontractor or supplies due to such cause, provided that the parties so disenabled shall within ten (10) days from.the beginning of such delay, notify the other party in writing of the cause of delay and its probable extent. Such notification shall not be the basis for a claim for additional compensation. Each party shall,however,makeall reasonable efforts to remove or eliminate such a cause of delay or,default and shall, upon cessation of the cause, diligently pursue performance of its obligation under the Agreement. 16. NON-WAIVER The failure of City to insist upon or enforce strict performance by Contractor of any of the terms of this Agreement or to exercise any rights hereunder should not be construed as a waiver or relinquishment to any extent of its rights to assert or rely upon such terms or rights on any future occasion. 17. NON-DISCRIMINATION Contractor agrees to comply with all applicable requirements of federal and-,state civil rights and rehabilitation statues, rules, and regulations. Contractor also shall comply with the Americans with Disabilities Act of 1990, ORS 659.425, and all regulations and administrative rules established pursuant to those laws. 18. ERRORS Contractor shall perform such additional work as may be .necessary, to correct errors in the work required under this Agreement without undue delays and without additional cost. 19. EXTRA(CHANGES)WORD Only the City's Utility Division Manager,_John Goodrich, may authorize.extra (and/or change) work. Failure of Contractor to secure authorization for extra work shall constitute a waiver of all right to adjustment in the contract price or contract time due to such unauthorized extra work and Contractor thereafter shall be entitled to no compensation whatsoever for the performance of such work. 20. WAARANTIES All work shall be guaranteed by Contractor for a period of one year after the date of final acceptance of the work by the owner. Contractor warrants that all practices and procedures, workmanship and materials shall be in accordance with generally accepted professional practices and standards. Neither acceptance of the work nor payment therefore shall relieve Contractor from liability under warranties contained in or implied by this Agreement. 21. ATTORNEY'S FEES In case suit or action is instituted to enforce the provisions of this contract, the parties agree that the losing party shall pay such sum as the court may adjudge reasonable attorney fees and court costs, including attorney's fees and court costs on appeal. 22. GOVERNING LAW The provisions of this Agreement shall be construed in accordance with the provisions of the,laws of the State of Oregon. Any action or suits involving any question arising under this Agreement must be brought in the appropriate court of the State of Oregon. --. 23. COMPLIANCE WITH STATE AND FEDERAL LAWS/RULES Contractor shall comply with all applicable federal, state and local laws, rules and regulations, including, but not limited to, the requirements concerning working hours, overtime, medical care, workers compensation insurance, health care payments, payments to employees and subcontractors Water Rate Study and Water System Development Charge Update Page 8 and income tax withholding contained in ORS Chapter 279B, the provisions of which are hereby made a part of this agreement. 24. CONFLICT BETWEEN TERMS It is agreed by and between the Parties that should there be any conflict between the terms of this Agreement and Exhibit B, the Contractor's proposal, this Agreement shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. It is further expressly agreed by and between the Parties that should there be any conflict between the terms of Exhibit A, Services to Be Provided & Fee Schedule, and Exhibit B, the Contractor's proposal, Exhibit A shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. 25. AUDIT Contractor shall maintain records to assure conformance with the terms and conditions of this Agreement, and to assure adequate performance and accurate expenditures within the contract period. Contractor agrees to permit City, the State of Oregon, the federal government, or their duly authorized representatives to audit all records pertaining to this Agreement to assure the accurate expenditure of funds. 26. SEVERABILITY In the event any provision or portion of this Agreement is held to be unenforceable or invalid by any court of competent jurisdiction, the validity of the remaining terms and provisions shall not be affected to the extent that it did not materially affect the intent of the parties when they entered into the agreement. 27. CONDITIONS OF SUPPLYING A PUBLIC AGENCY Where applicable, seller 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. 28. HOURS OF LABOR If labor is performed under this order, then no person shall be employed for more than eight (8) hours in any one day, or forty (40) hours in any one week, except in cases of necessity, or emergency or where the public policy absolutely requires it, and in such cases, except cases of contracts for personal services as defined in ORS 279A.055,the labor shall be paid at least time and a half for all overtime in excess of eight (8) hours a day and for all work performed on Saturday and on any legal holidays as specified in ORS 279C.540. In cases of contracts for personal services as defined in ORS 279A.055,any labor shall be paid at least time and a half for all hours worked in excess of forty (40) hours in any one week, except for those individuals excluded under ORS 653.010 to 653.260 or under 29 USC SS 201-209. 29. COMPLETE AGREEMENT This Agreement and attached exhibits constitute 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 Water Rate Study and Water System Development Charge Update Page 9 signature of its authorized representative, hereby acknowledges that he 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. Authorized by Tigard's Local Contract Review Board: May 11,2010 City of Tigard Red Oak Consulting, A division ofMalcolm Pirnie By: Craig Prosser, City Manager By:Authorized Agent of Contractor Date Date Water Rate Study and Water System Development Charge Update Page 10 signature of its authorized representative, hereby acknowledges that he 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. Authorized by Tigard's Local.Contract,Review Board: May 11,2010 City of Tigard Red Oak Consulting, A division ofMalcohn Pirnie By: Craig Prosser, City Manager By: Authorized Agent of Contractor Date Date Water Rate Study and Water System Development Charge Update Page 10 EXHIBIT A SERVICES TO BE PROVIDED&FEE SCHEDULE FINANCIAL CONSULTING SERVICES WATER RATE STUDY AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE 1. INTRODUCTION The City of Tigard's water service area includes approximately two-thirds of the City of Tigard, the Cities of Durham and King City, and unincorporated areas of Washington County represented by the Tigard Water District. This area is identified as the Tigard Water Service Area (TWSA). The City of Tigard serves as the water provider and managing authority for the TWSA through intergovernmental agreements with the Cities of Durham and King City, and the Tigard Water District. All fees and charges and the level of water service are the same for customers within the TWSA, irrelevant of jurisdiction. Areas of Tigard not served by the City receive water service from the Tualatin Valley Water District (TVWD). The City estimates it provides drinking water to approximately 57,500 people within the TWSA through 17,890 residential, multi-family, irrigation, commercial, and industrial water service connections. Water customers are currently billed once every two months. The requested financial services will assist the City in developing a water fees and charges schedule by conducting a water rate study, and updating the water system development charge (SDC) methodology. The work shall establish the necessary revenue requirements to implement the 2010 Water System Master Plan which forecasts through 2030. The plan includes the most recent capital maintenance and improvement projects. There will also be funding requirements for the capital improvements related to the Lake Oswego-Tigard Water Partnership. General information regarding the partnership can be found at wwwlotlgardwatenorg. Tigard's financial commitment to partnership projects is estimated to be $118 million dollars. The City desires review of various rate structures,with a subsequent recommendation of setting the water fees and charges in order to meet the City's financial obligations. The City also needs a comprehensive water SDC update that identifies and allocates funding associated with excess capacity and new construction.The current SDC methodology was last updated in 2000. 2. WATER RATE STUDY SCOPE AND SCHEDULE OF WORK A. DATA REQUEST The Contractor will submit, in writing, a data request list in sufficient time for the City to prepare the material for the pre-services meeting. B. PRE-SERVICES MEETING/DATA REQUEST The Contractor will arrange for a pre-services meeting with City staff to set a course for the work to be completed and to establish a clear understanding of the water rate study analysis tasks and completion schedule. This meeting may be conducted in conjunction with the pre-services meeting for the water SDC update. This meeting will also serve as an information exchange, with the Contractor collecting all necessary data. Water Rate Study and Water System Development Charge Update Page 11 C. WATER RATE STUDY PROJECT SCOPE The Contractor will recommend a water fees and charges schedule and a test period. This recommendation will be considered by the Intergovernmental Water Board (1WB) and Tigard City Council. The schedule shall establish the projected revenue requirements necessary to ensure an adequate cash flow in a stable and predictable manner. This proposal should use the following assumptions regarding appropriate financial policy and project scope of work requirements. 1. A fair and equitable fees and charges schedule that ensures water services are provided on a self- supporting basis. 2. Adequate funding for capital projects as identified in the 2010 Water System Master Plan. 3. Encourage water conservation consistent with Oregon Water Resources Department requirements. 4. Identify and develop the strategies and schedule necessary to acquire bond financing to fund future projects from the City's water capital improvement plan and the Lake Oswego-Tigard Water Partnership. 5. Analyze and develop a cost-benefit analysis of utility billing frequency to adequately meet cash flow requirements. 6. Review and update all current and recommended non-commodity fees and charges associated with water service. 7. Analyze and develop recommendations regarding what level of adequate fund reserves would be necessary to meet the City's needs. 8. Compare any proposed new water fees and charges to other utilities providing water services in the county and region. 9. The recommended rate structures shall be consistent with industry practice for utility rate making in Oregon. 10. The benefits of any proposed modifications shall be weighed against the financial impacts on ratepayers, and separated by rate classifications such as residential, multi-family, commercial, industrial, and irrigation, etc. 11. Justifications for any special classes of customers under the recommended water fees and charges schedule shall be demonstrated. 12. Any recommended rate structure or rate model should take into consideration the ease of administration and understanding by the rate payers. 13. Any proposed water fees and charges schedule must integrate with the City's utility billing system. 14. Analyze and develop the appropriate test period for the recommended water fees and charges schedule. 15. The rate study shall include a user-friendly electronic rate model, in either Microsoft Excel or Access,which enables the City to calculate future water fees and charges. D. WATER RATE ANALYSIS AND REPORT With regard to water fees and charges recommendations, the water rate study shall include a final report that explicitly includes the following elements and analysis: 1. Current Rate Structure: Assess the current water fees and charges performance as a baseline for comparing recommended changes. 2. Equity: Assess the equity of recommended water fees and charges for all types of property ownership to include multi-family units. Water Rate Study and Water System Development Charge Update Page 12 C. WATER RATE STUDY PROJECT SCOPE The Contractor will recommend a water fees and, .charges schedule and a test period. This recommendation will.be considered by the Intergovernmental Water Board .(IWB) and Tigard City Council. The schedule shall establish the projected revenue requirements necessary to ensure an adequate cash flow in a stable and predictable manner. This proposal should use the following assumptions regarding appropriate financial policy and project scope of work requirements. 1. A fair and equitable fees and charges schedule that ensures water services are provided on a self- supporting basis. 2. Adequate funding for capital projects as identified in the 2010 Water System Master Plan. 3. Encourage water conservation consistent with . Oregon .Water Resources Department requirements. 4. Identify;and develop the strategies and schedule necessary to,acquire bond :financing-to fund future projects. from the City's water capital improvement plan and the Lake Oswego-Tigard Water Partnership. 5. Analyze and develop a cost-benefit analysis of utility billing frequency to adequately meet cash flow requirements. 6. Review and update all current and recommended non-commodity fees and charges associated with water service. 7. Analyze and develop recommendations regarding what level of adequate fund reserves would be necessary to meet the City's needs. 8. Compare any proposed new water fees and charges,to other utilities .providing water services in the county and region. 9. The recommended rate structures shallbe consistent with industry practice for utility rate making in Oregon. 10. The .benefits of any proposed modifications shall be weighed against the.financial,impacts on ratepayers, and separated,by rate classifications such as residential, multi-family, commercial, industrial, and irrigation, etc. 11. Justifications for any special classes of customers under the recommended water fees and charges schedule shall be demonstrated. 12..Any recommended rate structure or rate model,should take into consideration the ease of administration and understanding by the rate payers:_ 13. Any proposed water fees and charges schedule must .integrate with the City's utility billing system. 14. Analyze and develop the appropriate test period for the recommended water fees and charges schedule. 15. The rate stud shall include a user-friendly electronic rate mode in either Microsoft Excel or 5 y y 1, Access,which enables the City to calculate future water fees and charges. D. WATER RATE ANALYSIS AND REPORT With regard to water fees and charges recommendations, the water rate study shall include a final report that explicitly includes the following-elements and analysis: 1. Current Rate Structure: Assess the current water fees and charges performance as a,baseline for comparing recommended changes. 2. Equity: Assess the equity of recommended water fees and charges for all types of property ownership to include multi-family units. Water Rate Study and Water System Development Charge Update Page 12 3. Conservation Impacts: Assess the interaction between the water conservation elements of the recommended water fees and charges, and their impacts on the ability to fund water operations and capital projects including those associated with the Lake Oswego-Tigard Water Partnership. 4. Other Service Charges: Assess existing customer service fees and charges and identify other potential areas for service and system charges (service activities,back-flow devices, plan reviews, water service shut-offs, delinquent payment, reconnection fees, etc.) and recommend changes, if appropriate. Assessment is to note any resulting increase in liability the City may incur as a result of approving and assessing these fees and charges. 5. Annual Operating Fund Balance Targets: Recommend adequate reserve-levels for operating cash flow, capital replacement,bond requirements, and unforeseen events. 6. Electronic Rate Model: Provide a user-friendly electronic rate model, in either Microsoft Excel or Access,which enables the City to calculate future water fees and charges. 7. Rate Sensitivity Analysis and Affordability Index: Provide a rate sensitivity analysis and affordability index ratio regarding the recommended water fees and charges schedule. This analysis should consider TWSA demographics relating to the household income level, and the types of residential, multi-family, commercial, and industrial accounts. This shall include impacts to public authorities such as schools,parks, etc. 8. Rate Payer Education/Communications: Recommend methods for communicating utility costs to customers, including changes in the utility billing structure and identifying the actual costs of providing water under the recommended fees and charges schedule. Assess ease of communication associated with each recommended type of water fee and charge. 9. Cost Analysis of Tigard Expansion: Provide a cost-benefit analysis on the expansion of the City's water services into developed and undeveloped areas adjacent to the current service area. E. WATER RATE STUDY SUMMARY OF SERVICES At the conclusion of the project, the Contractor shall provide a draft report for the City's review. The report shall summarize the methodology and analysis undertaken in completing the water rate study findings, including the results, conclusions, and recommendations. The report shall be detailed and shall include a proposed water commodity structure, rates, user fees, user charges, etc. The report shall provide implementation recommendations in a "ready-to-adopt" format including calculation tables. The Contractor shall propose the number of hours and fee estimate based on the following assumptions: 1. Conduct a detailed review of the existing water rates and status of the Water Fund. Develop a general familiarity with the City's utility billing system. 2. Meet with City's financial advisor to confer and discuss recommendations addressing financial and future bond issuance requirements. 3. Supply a time schedule for developing the preliminary and final reports. 4. Prepare for and attend six (6) evening meetings: a. Project Introduction presentation to the Intergovernmental Water Board (IWB) and the Tigard City Council. This 30-minute presentation is scheduled for the evening of June 15, 2010. b. Fees and Charges Options presentation to obtain preferred option(s) for further evaluation based on findings. Presentation will be given to the Intergovernmental Water Board (IWB) and, separately, to the City Council. c. Preliminary Report presentation based on final recommendations. This presentation will be given to the IWB and, separately, to the City Council. Water Rate Study and Water System Development Charge Update Page 13 d. Final Report presentation detailing, and considering for adoption, the water rate schedule of fees and charges. This presentation will take place at a City Council meeting and will include a public hearing. 5. Meet with City staff to review findings. 6. Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format, with spreadsheets in Excel format. 7. Final Report and presentation requirements: a. City staff shall review and approve all work prior to final acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public notification(s) summarizing analyses and recommendations. Notices will be distributed by the City. c. Incorporate changes pursuant to comments received City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 copies,plus one reproducible copy, and an electronic storage disc with final report in MS Word format,with spreadsheets in Excel format. S. Provide a user-friendly electronic rate model, in either Microsoft Excel or Access, which enables the City to re-calculate future water fees and charges. 9. All work related to the water rate study, including the final report, will be completed and submitted to the City's Utility Division.Manager, John Goodrich, in a ready-to- adopt format by October 19, 2010. 3. WATER SYSTEM DEVELOPMENT CHARGE (SDC) UPDATE SCOPE AND SCHEDULE OF WORK A. DATA REQUEST The Contractor will submit, in writing, a data request list in sufficient time for the City to prepare the material for the pre-services meeting. B. PRE-SERVICES MEETING/DATA REQUEST The Contractor will arrange for a pre-services meeting with City staff to collect and discuss initial data, review the work plan and schedule, discuss policy and technical issues, and initiate the study. This meeting may be conducted in conjunction with the water rate study pre-services meeting. C. SDC UPDATE PROJECT SCOPE The Contractor shall provide financial consulting services including: 1. Review of City's financial data and 2010 Water System Master Plan. 2. Preparation of the SDC methodology evaluation and analysis. 3. Calculation of revised fees and charges for the water utility. The Contractor shall include recommendations regarding aspects beneficial to the City pertaining to SDC update methods. D. SDC UPDATE SUMMARY OF SERVICES At the conclusion of the project, the Contractor shall provide a draft report for the City's review. The report shall summarize the methodology and analysis undertaken in completing the water SDC Water Rate Study and Water System Development Charge Update Page 14 t d. Final Report presentation detailing, and considering for adoption, the water rate schedule of fees and charges. This presentation will take place at a City Council meeting and will include a public hearing. 5. Meet with City staff to review findings. 6. -Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format, with spreadsheets in Excel format. 7. Final Report and presentation requirements: a. City staff shall review and approve all work prior to final acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public notification(s) summarizing analyses and recommendations. Notices will be distributed by the City. C. Incorporate changes pursuant to comments received City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 copies,plus one reproducible copy, and an electronic storage disc with final report in MS Word format,with spreadsheets in Excel format. 8. Provide a user-friendly electronic rate model, in either Microsoft Excel or Access, which enables the,City to re-calculate future water fees and charges. 9. All work related to.the water rate study; including the final report, will be completed and submitted to.the City's Utility Division,Manager,..John Goodrich,.in a ready-to- adopt format by October 19, 2010. 3. WATER SYSTEM DEVELOPMENT CHARGE (SDC) UPDATE SCOPE AND SCHEDULE OF WORK A. DATA REQUEST The Contractor will submit, in writing, a data request list in sufficient time for the City to.prepare the material for the pre-services meeting. B. PRE-SERVICES MEETING/DATA REQUEST The Contractor will arrange for a pre-services meeting with City staff to collect and discuss initial data, review the work plan and schedule, discuss policy and technical issues, and initiate the study. This meeting may be conducted in conjunction with the water rate study pre-services meeting. C. SDC UPDATE PROJECT SCOPE The Contractor shall provide financial consulting services including: 1. Review of City's financial data and 2010 Water System Master Plan. 2. 'Preparation of the SDC methodology evaluation and analysis. 3. Calculation of revised fees and charges for the water utility. The Contractor shall include recommendations regarding aspects beneficial to the City pertaining to SDC update methods. D. SDC UPDATE SUMMARY OF SERVICES At the conclusion of the project, the Contractor shall provide a draft report for the City's review. The report shall summarize the methodology and analysis undertaken in completing the water SDC Water Rate Study and Water System Development Charge Update Page 14 update findings including the results, conclusions, and recommendations. The report shall provide implementation recommendations in a "ready-to-adopt" format including calculation tables. The Contractor shall propose the number of hours and fee estimate based on the following assumptions: 1. Develop and complete the technical analyses with City staff and other engineering consultants: a. Use the SDC project list supplied in the 2010 Water System Master Plan. Review the list of projects and costs and use as the initial improvements fees and charges basis. b. The Contractor will be provided information regarding allocation of project costs to growth. Using information provided in the 2010 Water System Master Plan and the input of City staff, the Contractor will include the capacity-increasing portion of each project for the improvement fee. This shall serve as the improvement fee cost basis. c. Determine the reimbursement fee cost basis (if applicable). Using the City's asset information and the policy input from the pre-services meeting, the Contractor will establish the amount of eligible unused capacity in the existing water system for use in the calculation of the SDC reimbursement fees. d. Determine appropriate SDC allocation to any portion of the capital construction necessary for the Lake Oswego-Tigard Water Partnership. e. Calculate the improvement fee from information on the eligible cost of planned future facilities. Calculate the reimbursement fee, as applicable, from information on the cost of unused capacity in existing infrastructure. 2. Supply a time schedule for developing the preliminary and final reports. 3. Prepare for and attend up to six (6) evening meetings with the Intergovernmental Water Board (IWB) and/or the City Council to solicit input, describe Contractor recommendations, and participate in a public hearing on the adoption of updated SDC methodology. These meetings shall be scheduled in conjunction with the water rate study meetings described in section 4.1 EA. 4. Meet with City staff to review findings. - 5. Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format, with spreadsheets in Excel format. 6. Final Report and presentation requirements: a. City staff shall review and approve all work prior to final acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public notification(s) summarizing analyses and recommended changes. Notices will be distributed by the City. c. Incorporate changes pursuant to comments received by staff and City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 hard copies, one reproducible copy, and an electronic storage disc with final report in MS Word format,with spreadsheets in Excel format. 7. Provide a user-friendly electronic SDC methodology, in either Microsoft Excel or Access, which enables the City to re-calculate future SDCs. 8. All work related to the water SDC study, including the final report, will be completed and submitted to the City's Utility Division Manager, John Goodrich, in a ready-to- adopt format by August 31, 2010. Water Rate Study and Water System Development Charge Update Page 15 4 4. ADDITIONAL INFORMATION SCOPE AND SCHEDULE OF WORK A. SERVICES PROVIDED BY THE CITY The information to be provided by the City shall include, but is not necessarily limited to the following: 1. SDC-related documents and information as available. 2. Existing water rate fees and charges 3. The 2010 Water System Master Plan and adopted SDC project list. 4. Current development status and projected build out figures. 5. Financial information regarding balance of water utility SDC accounts and status of outstanding SDC credits,if any. 6. Other information, as available, regarding water usage, water production, billing data, annual budget requirements, wholesale water purchase agreements, and information specified by the Contractor relating to data required to conduct adequate analysis of the financial revenue requirements. 5. FEE SCHEDULE—See Attached Pages Water Rate Study and Water System Development Charge Update Page 16 Version Date:March 17, 2010 CITY OF TIGARD, OREGON REQUEST FOR'PRIOPOSALS" FINANCIAL CONSULTING SERVICES - WATER RATE STUDY AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE DATE DUE: Tuesday,April 6,2010 TIME DUE: 2:00 p.m. local time Envelopes must be sealed and marked with Project Tide. Proposers must submit one (1) original and five (5) complete copies of their proposal. #17 t ' ' I - A P"QJ John Goodrich,Utility Division Manager Joseph Barrett,Senior Management Analyst City of Tigard,Public Works Department City of Tigard, Financial& Information Services Phone: (503) 718-26209 Phone: (503) 718-2477 Fax: (503) 684-8840 Fax: (503) 684-7297 Email: johng2tigard-or.gov Email: josephgtigard-or.gov SUBMIT PROPOSAL TO: Joseph Barrett, Sr. Management Analyst City of Tigard-Information Desk 13125 SW Hall Blvd. Tigard, Oregon 97223 RFP-Financial Consulting Services-Water Rate Study and Water SDC Charge Update Page 1 Close Date-April 6,2010 PUBLIC NOTICE REQUEST FOR PROPOSALS CITY OF TIGARD, OREGON Financial Consulting Services - Water Rate Study and Water System Development Charge Update The City of Tigard will receive sealed proposals from firms qualified to perform financial consulting services for a water rate study and a water system development charge (SDC) update until 2:00 p.m. local time, Tuesday, April 6, 2010, at Tigard City Hall's Information Desk at 13125 SW Hall Blvd., Tigard, Oregon 97223. No proposal will be considered unless fully completed in a manner provided in the RFP packet. Facsimile and electronic (email) proposals will not be accepted nor will any proposal be accepted after the stated due date and time. Any proposal received after the closing time will be returned to the submitting firm unopened after a contract has been awarded for the required services. RFP packets may be downloaded from.httj2://-,vw-,v.tiVard-or.gov or obtained in person at Tigard City Hall's Information Desk located at 13125 SW Hall Blvd.,Tigard, Oregon 97223. Proposers are required to certif,non-discrimination in employment practices, and identify resident status as defined in ORS 279.029. Pre-qualification of proposers is not required. All proposers are required to comply with the provisions of Oregon Revised Statutes and Local Contract Review Board (LCRB) Policy. The City may reject any proposal not in compliance with all prescribed public bidding procedures and requirements, and may reject for good cause any or all proposals upon a finding of the City if it is in the public interest to do so. PUBLISHED: Daily Journal of Commerce DATE: Thursday,March 18,2010 RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 2 Close Date—April 6,2010 TABLE OF CONTENTS TITLE PAGE TidePage................................................................................. .....................................1 Public Notice 2 Table of Contents 3 SECTIONS Section 1 Introduction 4 Section 2 Proposer's Special Instructions--------------------------------------------------------------------------------------4 Section3 Background....................................... ---------------------------------------- ...................................6 Section 4.1 Scope and Schedule of Work—Water Rate Study........................................................7 Section 4.2 Scope and Schedule of Work—Water SDC Update--------_.......................................... Section 4.3 Scope and Schedule of Work—Additional Information.............................................11 Section 5 Proposal Content and Format 12 Section 6 Proposal Evaluation Procedures.------ __________________14 --------------------------------------------------------- Section 7 Proposal Certification-------------------------------------------------------------------------- -----------------------16 Section8 Signature Page------------- ....... --------------------------------------•-------•------ ..................................17 Section 9 Fees Schedule 18 --------------------------------------------------------------------------------------------------------------- ATTACHMENTS Attachment A Acknowledgement of Addendum--------------------------------------------------------------------------------19 Attachment B Statement of Proposal------------------------------------------- •------------------------------------------------------ 20 Attachment C City of Tigard Personal Service Contract....................................................................21 RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 3 Close Date—April 6,2010 SECTION 1 INTRODUCTION The City of Tigard will receive sealed proposals from firms qualified to perform financial consulting services for a water rate study and a water system development charge (SDC) update until 2:00 p.m. local time, Tuesday, April 6, 2010, at Tigard City Hall's Information Desk at 13125 SW Hall Blvd., Tigard, Oregon 97223. No proposal will be considered unless fully completed in a manner provided in the RFP packet. Facsimile and electronic (email) proposals will not be accepted nor will any proposal be accepted after the stated due date and time. Any proposal received after the closing time will be returned to the submitting firm unopened after a contract has been awarded for the required services. SECTION 2 PROPOSER'S SPECIAL INSTRUCTIONS A. PROPOSED TIMELINES Thursday,March 18,2010 Advertisement and Release of Proposals Tuesday,April 6,2010—2:00 p.m. Deadline for Proposal Submission Week of April 12,2010 Interviews (if necessary) Tuesday,May 11,2010 Award of Contract by LCRB Friday,May 14,2010 Commencement of Services NOTE: The City reserves the right to modify this schedule at the City's discretion. Proper notification of changes in the will be made to all interested parties. B. GENERAL By submitting a proposal, the proposer certifies that the Proposal has been arrived at independently and has been submitted without any collusion designed to limit competition. C. PROPOSAL SUBMITTAL The Proposal and all amendments must be signed and submitted no later than 2:00 p.m. on Tuesday,April 6, 2010, to the address below. Each proposal must be submitted in a sealed envelope and designated with proposal title. To assure that your proposal receives priority treatment, please mark as follows. Request for Proposals Financial Consulting Services - Water Rate Study and Water System Development Charge Update Due: April 6, 2010—2:00 p.m. City of Tigard—City Hall Information Desk Attn: Joseph Barrett, Sr. Management Analyst 13125 SW Hall Blvd. Tigard, Oregon 97223 Proposer shall put their name and address on the outside of the envelope. It is the proposer's responsibility to ensure that proposals are received prior to the stated closing time. The City shall not be responsible for the proper identification and handling of any proposals submitted incorrectly. Late proposals, late modification or late withdrawals shall not be considered accepted after the stated bid opening date and time and shall be returned unopened. Facsimile and electronic (email) proposals will not be accepted. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 4 Close Date—April 6,2010 D. PROTEST OF SCOPE OF WORK OR TERMS A proposer who believes any details in the scope of work or terms detailed in the proposal packet and sample contract are unnecessarily restrictive or limit competition may submit a protest in writing, to the Purchasing Office. A protest may be submitted via facsimile. Any such protest shall include the reasons for the protest and shall detail any proposed changes to the scope of work or terms. The Purchasing Office shall respond to any protest and, if necessary, shall issue any appropriate revisions, substitutions, or clarification via addenda to all interested proposers. To be considered, protests must be received at least five (5) days before the proposal closing date. The City shall not consider any protest against award due to the content of proposal scope of work or contract terms submitted after the established protest deadline. All protests should be directed to Joseph Barrett, Sr. Management Analyst, and be marked as follows: RFP Specification/Term Protest City of Tigard Attn: Joseph Barrett, Sr. Management Analyst 13125 SW Hall Blvd. Tigard, Oregon 97223 If a protest is received in accordance with section above, the proposal opening date may be extended if necessary to allow consideration of the protest and issuance of any necessary addenda to the proposal documents. E. PROPOSAL SUBMISSION AND SIGNING All requested forms and attachments (Signature Page, Acknowledgment Addendum, Statement of Proposal, etc.) must be submitted with the Proposal and in the required format. The submission and signing of a proposal shall indicate the intention of the firm to adhere to the provisions described in this RFP. F. COST OF PREPARING A PROPOSAL The RFP does not commit the City to paying any costs incurred by proposer in the submission or presentation of a proposal, or in making the necessary studies for the preparation thereof. G. INTERPRETATIONS AND ADDENDA All questions regarding this project proposal shall be directed to John Goodrich, Utility Division Manager. If necessary,interpretations or clarifications in response to such questions will be made by issuance of an "Addendum" to all prospective proposers within a reasonable time prior to proposal closing, but in no case less than 72 hours before the proposal closing. If an addendum is necessary after that time, the City,at its discretion, can extend the closing date. Any Addendum issued, as a result of any change in the RFP, must be acknowledged by submitting the "Acknowledgment of Addendum"with proposal. Only questions answered by formal written addenda will be binding. Oral and other interpretations or clarifications will be without legal effect. H. BUSINESS TAX/FEDERAL TAX ID REQUIRED The City of Tigard Business Tax is required. Chapter 5.4 of the Tigard Municipal Code states any business doing business in the City of Tigard shall pay a City of Tigard Business Tax. No contracts shall be signed prior to the payment of the City of Tigard Business Tax. Upon award of proposal, contractor shall provide the City with a completed a W-9 form. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 5 Close Date—April 6,2010 I. CITY'S PROTECT MANAGER The City's Project Manager for this work will be Utility Division Manager John Goodrich who can be reached by phone at (503) 718-2609 or by email at johng a,tigard-or.gov. Contacting any other person or authority for information other than the City Sr. Management Analyst or Project Manager may result in disqualification of bid. J. PROPOSAL VALIDITY PERIOD Each proposal shall be irrevocable for a period of sixty (60) days from the Proposal Opening Date. K. FORM OF CONTRACT A copy of the City's standard Personal Services Contract,which the City expects the successful firm or individual to execute,is included as "Attachment C." The contract will incorporate the terms and conditions from this RFP document and the successful proposer's response documents. Firms taking exception to any of the contract terms shall submit a protest or request for change in accordance with Section 2.D. "Protest of Scope of Work or Terms" or their exceptions will be deemed waived. L. TERM OF CONTRACT The term of the contract shall be a period of one (1) year. The total term of the contract shall not exceed one (1) year. M. TERMINATION The contract may be terminated by mutual consent of both parties or by the City at its sole discretion with a 30-day written notice. If the contract is so terminated, Contractor shall be paid in accordance with the terms of the contract. N. NON-COLLUSION Proposer certifies that this proposal had been arrived at independently and has been submitted without collusion designed to limit independent bidding or competition. O. PUBLIC RECORD All proposal material submitted by proposer shall become the property of the City and is public record unless otherwise specified. A proposal that contains any information that is considered a trade secret under ORS 192.501(2) should be segregated and clearly identified as such. This information will be kept confidential and shall not be disclosed except in accordance with the Oregon Public Records Law, ORS 192. The above restrictions may not include cost or price information,which must be open to the public. SECTION 3 BACKGROUND The City of Tigard's water service area includes approximately two-thirds of the City of Tigard, the Cities of Durham and King City, and unincorporated areas of Washington County represented by the Tigard Water District. This area is identified as the Tigard Water Service Area (TWSA). The City of Tigard serves as the water provider and managing authority for the TWSA through intergovernmental agreements with the Cities of Durham and King City, and the Tigard Water District. All fees and charges and the level of water service are the same for customers within the TWSA, irrelevant of jurisdiction. Areas of Tigard not served by the City receive water service from the Tualatin Valley Water District (TVWD). RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 6 Close Date—April 6,2010 The City estimates it provides drinking water to approximately 57,500 people within the TWSA through 17,890 residential, multi-family, irrigation, commercial, and industrial water service connections. Water customers are currently billed once every two months. The requested financial services will assist the City in developing a water fees and charges schedule by conducting a water rate study, and updating the water system development charge (SDC) methodology. The work shall establish the necessary revenue requirements to implement the 2010 Water System Master Plan which forecasts through 2030. The plan includes the most recent capital maintenance and improvement projects. There will also be funding requirements for the capital improvements related to the Lake Oswego- Tigard Water Partnership. General information regarding the partnership can be found at Nvww.lotigardwater.or . Tigard's financial commitment to partnership projects is estimated to be $118 million dollars. The City desires review of various rate structures, with a subsequent recommendation of setting the water fees and charges to a schedule that best meet the needs of the City's financial obligations. The City also needs a comprehensive water SDC update that identifies and allocates funding associated with excess capacity and new construction. The current SDC methodology was last updated in 2000. SECTION 4.1 SCOPE AND SCHEDULE OF WORK WATER RATE STUDY A. DATA REQUEST The successful proposer will submit, in writing, a data request list in sufficient time for the City to prepare the material for the pre-services meeting. B. PRE-SERVICES MEETINGfDATA REQUEST The successful proposer will arrange for a pre-services meeting with City staff to set a course for the work to be completed and to establish a clear understanding of the water rate study analysis tasks and completion schedule. This meeting may be conducted in conjunction with the pre-services meeting for the water SDC update. This meeting will also serve as an information exchange,with the successful proposer collecting all necessary data. C. WATER RATE STUDY PROJECT SCOPE The successful proposer will recommend a water fees and charges schedule and a test period. This recommendation will be considered by the Intergovernmental Water Board (IWB) and Tigard City Council. The schedule shall establish the projected revenue requirements necessary to ensure an adequate cash flow in a stable and predictable manner. This proposal should use the following assumptions regarding appropriate financial policy and project scope of work requirements. 1. A fair and equitable fees and charges schedule that ensures water services are provided on a self- supporting basis. 2. Adequate funding for capital projects as identified in the 2010 Water System Master Plan. 3. Encourage water conservation consistent with Oregon Water Resources Department requirements. 4. Identify and develop the strategies and schedule necessary to acquire bond financing to fund future projects from the City's water capital improvement plan and the Lake Oswego-Tigard Water Partnership. 5. Analyze and develop a cost-benefit analysis of utility billing frequency to adequately meet cash flow requirements. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 7 Close Date—April 6,2010 6. Review and update all current and recommended non-commodity fees and charges associated with water service. 7. Analyze and develop recommendations regarding what level of adequate fund reserves would be necessary to meet the City's needs. 8. Compare any proposed new water fees and charges to other utilities providing water services in the county and region. 9. The recommended rate structures shall be consistent with industry practice for utility rate making in Oregon. 10. The benefits of any proposed modifications shall be weighed against the financial impacts on ratepayers, and separated by rate classifications such as residential, multi-family, commercial, industrial,and irrigation, etc. 11. Justifications for any special classes of customers under the recommended water fees and charges schedule shall be demonstrated. 12. Any recommended rate structure or rate model should take into consideration the ease of administration and understanding by the rate payers. 13. Any proposed water fees and charges schedule must integrate with the City's utility billing system. 14. Analyze and develop the appropriate test period for the recommended water fees and charges schedule. 15. The rate study shall include a user-friendly electronic rate model, in either Microsoft Excel or Access,which enables the City to calculate future water fees and charges. D. WATER RATE ANALYSIS AND REPORT With regard to water fees and charges recommendations, the water rate study shall include a final report that explicitly includes the following elements and analysis: 1. Current Rate Structure: Assess the current water fees and charges performance as a baseline for comparing recommended changes. 2. Equity: Assess the equity of recommended water fees and charges for all types of property ownership to include multi-family units. 3. Conservation Impacts: Assess the interaction between the water conservation elements of the recommended water fees and charges, and their impacts on the ability to fund water operations and capital projects including those associated with the Lake Oswego-Tigard Water Partnership. 4. Other Service Charges: Assess existing customer service fees and charges and identify other potential areas for service and system charges (service activities, back-flow devices,plan reviews, water service shut-offs, delinquent payment, reconnection fees, etc.) and recommend changes, if appropriate. Assessment is to note any resulting increase in liability the City may incur as a result of approving and assessing these fees and charges. 5. Annual Operating Fund Balance Targets: Recommend adequate reserve levels for operating cash flow,capital replacement, bond requirements, and unforeseen events. 6. Electronic Rate Model: Provide a user-friendly electronic rate model, in either Microsoft Excel or Access,which enables the City to calculate future water fees and charges. 7. Rate Sensitivity Analysis and Affordability Index: Provide a rate sensitivity analysis and affordability index ratio regarding the recommended water fees and charges schedule. This analysis should consider TWSA demographics relating to the household income level, and the types of residential,multi-family, commercial, and industrial accounts. This shall include impacts to public authorities such as schools,parks,etc. 8. Rate Payer Education/Communications: Recommend methods for communicating utility costs to customers, including changes in the utility billing structure and identifying the actual RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 8 Close Date—April 6,2010 costs of providing water under the recommended fees and charges schedule. Assess ease of communication associated with each recommended type of water fee and charge. 9. Cost Analysis of Tigard Expansion: Provide a cost-benefit analysis on the expansion of the City's water services into developed and undeveloped areas adjacent to the current service area. E. WATER RATE STUDY SUMMARY OF SERVICES At the conclusion of the project, the successful proposer shall provide a draft report for the City's review. The report shall summarize the methodology and analysis undertaken in completing the water rate study findings, including the results, conclusions, and recommendations. The report shall be detailed and shall include a proposed water commodity structure, rates, user fees, user charges, etc. The report shall provide implementation recommendations in a "ready to adopt" format including calculation tables. The bidder shall propose the number of hours and fee estimate based on the following assumptions: 1. Conduct a detailed review of the existing water rates and status of the Water Fund. Develop a general familiarity with the City's utility billing system. 2. Meet with City's financial advisor to confer and discuss recommendations addressing financial and future bond issuance requirements. 3. Supply a time schedule for developing the preliminary and final reports. The final report shall be delivered to the City within 90 days from contract date. 4. Prepare for and attend five (5) evening meetings: a. Fees and Charges Options presentation to obtain preferred option(s) for further evaluation based on findings. Presentation will be given to the Intergovernmental Water Board (IWB) and, separately, to the City Council. b. Preliminary Report presentation based on final recommendations. This presentation will be given to the IWB and, separately, to the City Council. c. Final Report presentation detailing, and considering for adoption, the water rate schedule of fees and charges. This presentation will take place at a City Council meeting and will include a public hearing. 5. Meet with City staff to review findings. 6. Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format, with spreadsheets in Excel format. 7. Final Report and presentation requirements: a. City staff shall review and approve all work prior to final acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public notification(s) summarizing analyses and recommendations. Notices will be distributed by the City. c. Incorporate changes pursuant to comments received City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 copies,plus one reproducible copy,and an electronic storage disc with final report in MS Word format,with spreadsheets in Excel format. 8. Provide a user-friendly electronic rate model, in either Microsoft Excel or Access, which enables the City to re-calculate future water fees and charges. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 9 Close Date—April 6,2010 SECTION 4.2 SCOPE AND SCHEDULE OF WORK WATER SYSTEM DEVELOPMENT CHARGE (SDC) UPDATE A. DATA REQUEST The successful proposer will submit, in writing, a data request list in sufficient time for the City to prepare the material for the pre-services meeting. B. PRE-SERVICES MEETING/DATA REQUEST The successful proposer will arrange for a pre services meeting with City staff to collect and discuss initial data, review the work plan and schedule, discuss policy and technical issues, and initiate the study. This meeting may be conducted in conjunction with the water rate study pre-services meeting. C. SDC UPDATE PROJECT SCOPE The successful proposer shall provide financial consulting services including: 1. Review of City's financial data and 2010 Water System Master Plan. 2. Preparation of the SDC methodology evaluation and analysis. 3. Calculation of revised fees and charges for the water utility. The successful proposer shall include recommendations regarding aspects beneficial to the City pertaining to SDC update methods. Proposals should address how you or your firm would approach the following six (6) assumptions to develop your analysis and calculations regarding SDC methods. • Discuss how you would ensure that new development pays its own way. • Discuss how to fund major system expansion using SDC fees. • Discuss what approach would be used to generate sufficient revenue to fund portions of capital improvements related to growth. • Discuss equity vs. debt balance to minimize rates by prudent use of debt. • Discuss how to equitably recover capital costs from current and future customers. • Discuss how to maintain the appropriate level of retained earnings and cash reserves to meet capital needs of the water system. D. SDC UPDATE SUMMARY OF SERVICES At the conclusion of the project, the successful proposer shall provide a draft report for the City's review. The report shall summarize the methodology and analysis undertaken in completing the water SDC update findings including the results, conclusions, and recommendations. The report shall provide implementation recommendations in a "ready to adopt" format including calculation tables. The proposer shall propose the number of hours and fee estimate based on the following assumptions: 1. Develop and complete the technical analyses with City staff and other engineering consultants: a. Use the SDC project list supplied in the 2010 Water System Master Plan. Review the list of projects and costs and use as the initial improvements fees and charges basis. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 10 Close Date—.April 6,2010 b. The proposer will be provided information regarding allocation of project costs to growth. Using information provided in the 2010 Water System Master Plan and the input of City staff, the proposer will include the capacity-increasing portion of each project for the improvement fee. This shall serve as the improvement fee cost basis. c. Determine the reimbursement fee cost basis (if applicable). Using the City's asset information and the policy input from the pre-services meeting, the proposer will establish the amount of eligible unused capacity in the existing water system for use in the calculation of the SDC reimbursement fees. d. Detern7ine appropriate SDC allocation to any portion of the capital construction necessary for the Lake Oswego-Tigard Water Partnership. e. Calculate the improvement fee from information on the eligible cost of planned future facilities. Calculate the reimbursement fee, as applicable, from information on the cost of unused capacity in existing infrastructure. 2. Supply a time schedule for developing the preliminary and final reports. The final report shall be delivered to the City within 90 days from contract date. 3. Prepare for and attend up to five (5) evening meetings with the Intergovernmental Water Board (IWB) and/or the City Council to solicit input, describe proposer recommendations, and participate in a public hearing on the adoption of updated SDC methodology. These meetings shall be scheduled in conjunction with the water rate study meetings described in section 4.1 EA. 4. Meet with City staff to review findings. 5. Draft Final Report requirements: a. Incorporate changes pursuant to comments received by staff and City Council. b. Submit 15 copies. c. Provide an electronic storage disc with final report in MS Word format,with spreadsheets in Excel format. 6. Final Report and presentation requirements: a. City staff shall review and approve all work prior to final acceptance and provide direction concerning specific recommendations. b. Prepare public notice schedule and text for public notification(s) summarizing analyses and recommended changes. Notices will be distributed by the City. c. Incorporate changes pursuant to comments received by staff and City Council. This final report shall be submitted for adoption at formal public hearing. d. Submit 15 hard copies, one reproducible copy, and an electronic storage disc with final report in MS Word format,with spreadsheets in Excel format. 7. Provide a user-friendly electronic SDC methodology,in either Microsoft Excel or Access,which enables the City to re-calculate future SDCs. SECTION 4.3 SCOPE AND SCHEDULE OF WORK ADDITIONAL INFORMATION A. SERVICES PROVIDED BY THE CITY The information to be provided by the City shall include, but is not necessarily limited to the following: 1. SDC-related documents and information as available. 2. Existing water rate fees and charges 3. The 2010 Water System Master Plan and adopted SDC project list. 4. Current development status and projected build out figures. 5. Financial information regarding balance of water utility SDC accounts and status of outstanding SDC credits,if any. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 11 Close Date—April 6,2010 6. Other information, as available, regarding water usage, water production, billing data, annual budget requirements, wholesale water purchase agreements, and information specified by the proposer relating to data required to conduct adequate analysis of the financial revenue requirements. SECTION 5 PROPOSAL CONTENT AND FORMAT A. FORMAT To provide a degree of consistency in review of the written proposals, firms are requested to prepare their proposals in the standard format specified below. 1. Title Page Proposer should identify the RFP subject, name and title of contact person, address, telephone number, fax number, email address and date of submission. 2. Transmittal Letter The transmittal letter should be not more than two (2) pages long and should include as a minimum the following: a. A brief statement of the proposer's understanding of the project and services to be performed. b. A positive commitment to perform the services within the time period specified, starting and completing the project within the deadlines stated in this RFP, and the names of persons authorized to represent the proposer, their title, address and telephone number (if different from the individual who signs the transmittal letter). 3. Table of Contents The table of contents should include a clear and complete identification by section and page number of the materials submitted. 4. Firm Qualifications a. Background of the firm. This should include a brief history of the firm and types of services the firm is qualified to perform. b. Qualifications of the firm in performing this type of work. This should include examples of related experience and references for similar studies and projects. 5. Team Member Oualifications Identify individuals and sub-consultants who will complete this work, their experience, and their individual qualifications. Pertinent resumes of assigned personnel should be included. 6. Project Approach a. Submit a work plan to accomplish the work defined in the sections entitled "Water Rate Study Project Scope," "Water Rate Study Summary of Services," "SDC Update Project Scope," and "SDC Update Summary of Services" in this RFP. The work plan should include time estimates (in hours) for each significant segment of the project and the staff level to be assigned. Where possible, individual staff members should be named and their titles provided. The planned use of specialists (if any) should be described. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 12 Close Date—April 6,2010 b. Proposals shall also include you or your firms project approach to these specific questions: i. What approach would be used to develop a comprehensive, long-term financial plan for the City's water utility over the next 20 years? ii. What approach should be used to manage a revenue bond strategy for scheduling an estimated project cost of$118 million dollars within a 5 year period? Discuss how the debt service reserve requirements would be managed and any impacts regarding the actual dollars needed. iii. What approach would be used in determining what revenue streams can be used to pay back debt, including a discussion of SDC, fixed, and variable allocations? Discuss if water SDC fees can be used and why. iv. What approach would be used to determine the test period to meet the City's revenue requirements? c. Indicate the extent to which City personnel would be expected to contribute to the project work effort. 7. Project Timeframe Prepare a timeframe that demonstrates a practical approach to meeting the City's specific deadlines by providing detailed information as to how the firm proposes to meet the timelines and reporting deadline requirements of the project. The successful bidder shall complete the project within 90 days of the date the contract is initiated. A detailed project design schedule shall be submitted to the City initially for review and approval in the pre- services meeting. Monthly progress reports including the planned project schedule verses the actual progress shall accompany billings submitted to the City. These reports and schedules shall be approved by the City as a condition of payment. 8. Compensation The proposer's fee structure should include the total hours and dollar amounts, including out-of-pocket costs for the total project. The water rate study and the water system development charge update must be billed separately. Therefore a time and materials "Not to Exceed" fee for each proposed scope should also be provided with hourly rates for assigned staff including.travel/transportation costs. B. ADDITIONAL SERVICES Provide a brief description of any other services that your firm could provide the City and an approximation of the hourly charge for each service of this type. Such services would be contracted on an"as needed" basis, to be provided and billed for separately. C. ADDITIONAL INFORMATION Please provide any other information you feel would help the selection committee evaluate your firm for this project. D. REFERENCES Please list three (3) references with, at the minimum, the follow information: 1. Company Name 2. Contact Individual Name 3. Contact Individual Title RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 13 Close Date—April 6,2010 4. Contact Phone E. DISPUTES Should any doubt or difference of opinion arise between the City and a proposer as to the items to be furnished hereunder or the interpretation of the provisions of this RFP, the decision of the City shall be final and binding upon all parties. F. CITY PERSONNEL No officer,agent, consultant or employee of the City shall be permitted any interest in the contract. SECTION 6 PROPOSAL EVALUATION PROCEDURES A. SELECTION AND EVALUATION PROCESS A selection committee assembled by the City will review the written proposals. Proposals will be evaluated to determine which ones best meet the needs of the City. After meeting the mandatory requirements, the proposals will be evaluated on both their technical and fee aspects. The selection committee will select the proposer which best meets the City's needs based upon an evaluation of a firm's proposal. Proposals will be evaluated in accordance with the following: 1. Completed proposal submitted on time Pass Fail 2. An original plus five (5) copies of the complete proposal Pass Fail 3. Transmittal letter Pass Fail 4. Firm qualifications 10 points 5. Project team member qualifications 30 points 6. Project understanding and approach 20 points 7. Project timeframe 10 points 8. Compensation 30 points TOTAL EVALUATION POINTS 100 POINTS B. PRESENTATION/INTERVIEW At the option of the City, the top scoring proposers (based on the criteria points) may be asked to make a presentation of their proposal. This will provide an opportunity to clarify or elaborate on the proposal, but will not, in any way provide an opportunity to change any fee amount originally proposed. The City's Project Manager will schedule the time and location of these presentations and notify the selected firms. If the City elects to conduct a presentation/interview process, 10 criteria points will be assigned to the process and will be added to the participating proposers' total points. C. INVESTIGATION OF REFERENCES The City reserves the right to investigate references and the past performance of any proposer with respect to its successful performance of similar projects, compliance with specifications and contractual obligations,its completion or delivery of a project on schedule and its lawful payment of employees and workers. D. CLARIFICATION OF PROPOSALS The City reserves the right to obtain clarification of any point in regards to a proposal or to obtain additional information necessary to properly evaluate a particular proposal. Failure of a proposer to respond to such a request for additional information or clarification could result in rejection of their proposal. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 14 Close Date—April 6,2010 E. RESERVATION IN EVALUATION The selection committee reserves the right to either: (a) request "Best and Final Offers" from the two finalist firms and award to the lowest priced or (b) to reassess the proposals and award to the vendor determined to best meet the overall needs of the City. F. INTENT OF AWARD Upon review of the proposals submitted, the City may negotiate a scope of work and a Personal Service Contract with one firm, or may select one or more firms for further consideration. G. PROTEST OF AWARD In accordance with Tigard Public Contracting Rule 30.135, any adversely affected proposer has seven (7) calendar days from the date of the written notice of award to file a written protest. H. PROPOSAL REJECTION The City reserves the right to: 1. Reject any or all proposals not in compliance with all public procedures and requirements; 2. Reject any proposal not meeting the specifications set forth herein; 3. Waive any or all irregularities in proposals submitted; 4. In the event two or more proposals shall be for the same amount for the same work, the City shall follow the provisions of LCRB 30.095 and Section 137-095 of the Oregon Attorney General's Model Public Contract Manual; 5. Reject all proposals; 6. Award any or all parts of any proposal;and 7. Request references and other data to determine responsiveness. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 15 Close Date—April 6,2010 SECTION 7 PROPOSAL CERTIFICATIONS Non-discrimination Clause The proposer agrees not to discriminate against any client, employee or applicant for employment or for services, because of race, color, religion, sex, national origin, handicap or age with regard to, but not limited to, the following: employment upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; selection for training; rendition of services. It is further understood that any proposer who is in violation of this clause shall be barred from receiving awards of any purchase order from the City, unless a satisfactory showing is made that discriminatory practices have terminated and that a recurrence of such acts is unlikely. Agreed by: Firm Name: Address: Resident Certificate Please Check One: ❑ Resident Vendor: Vendor has paid unemployment taxes and income taxes in this state during the last twelve calendar months immediately preceding the submission of this proposal. Or ❑ Non-resident Vendor:Vendor does not qualify under requirement stated above. (Please specify your state of residence: ) Officer's signature: Type or print officer's name: RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 16 Close Date—April 6,2010 SECTION 8 SIGNATURE PAGE The undersigned proposes to perform all work as listed in sections 4.1, 4.2, and 4.3 of this Request for Proposal, for the price(s) stated, and all articles supplied under any resultant contract will conform to the specifications herein. The undersigned agrees to be bound by all applicable laws and regulations, the accompanying specifications and by City policies and regulations. The undersigned, by submitting a proposal, represents that: A) The proposer has read and understands the specifications. B) Failure to comply with the specifications or any terms of the Request for Proposal may disqualify the proposer as being non-responsive. The undersigned certifies that the proposal has been arrived at independently and has been submitted without any collusion designed to limit competition. The undersigned certifies that all addenda to the specifications has been received and duly considered and that all costs associated with all addenda have been included in this proposal: Addenda: No. through No. inclusive. We therefore offer and make this proposal to furnish services at the price(s) indicated herein in fulfillment of the attached requirements and specifications of the City. Name of firm: Address: Telephone Number: Fax Number: By: Date: (Signature of Authorized Official. If partnership, signature of one partner.) Typed Name/Tide: If corporation, attest: (Corporate Officer) ❑ Corporation ❑ Partnership ❑ Individual Federal Tax Identification Number (TIN): RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 17 Close Date—April 6,2010 SECTION 9 FEES SCHEDULE Request for Proposal Financial Consulting Services Water Rate Study and Water System Development Charge Update A. Proposed Fees—Water Rate Study Complete all tasks as described in scope of work and summary of services: Principal Consultant project hours x $ per hour Financial Consultant project hours x$ per hour Administrative project hours x $ per hour Travel Expenses project hours x $ per hour Additional Services,if required: Additional Public Hearings/Meetings $ per hour (Include travel and administrative expenses) Total Water Rate Study $ B. Proposed Fees —Water System Development Charge Update Complete all tasks as described in scope of work and summary of services: Principal Consultant project hours x $ per hour Financial Consultant project hours x $ per hour Administrative project hours x $ per hour Travel Expenses project hours x $ per hour Additional Services,if required: Additional Public Hearings/Meetings $ per hour (Include travel and administrative expenses) Total Water System Development Charge Update $ Total Financial Services Cost (lYlater Study + Water SDC) $ RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 18 Close Date—April 6,2010 ATTACHMENT A ACKNOWLEDGMENT OF ADDENDA CITY OF TIGARD, OREGON Request for Proposal Financial Consulting Services Water Rate Study and Water System Development Charge Update Close: Tuesday,April 6.2010- 02:00 p.m. local time I/WE HAVE RECEIVED THE FOLLOWING ADDENDA (- none received, wite `None Received'r): 1. 3. 2. 4. Date Signature of Proposer Title Corporate Name RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 19 Close Date—April 6,2010 ATTACHMENT B STATEMENT OF PROPOSAL Name of Consultant: Mailing Address: Contact Person: Telephone: Fax: Email: accepts all the terms and conditions contained in the City of Tigard Request for Proposal for Financial Consulting Services — Water Rate Study and Update of Water System Development Charges and the attached Personal Services Contract (Attachment C): Signature of authorized representative Date Type or print name of authorized representative Telephone Number Type or print name of person(s) authorized to negotiate contracts Telephone Number REFERENCES Reference #1 Telephone Number Project Tide Contact Individual Reference #2 Telephone Number Project Title Contact Individual Reference #3 Telephone Number Project Title Contact Individual RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 20 Close Date—April 6,2010 ATTACHMENT C CITY OF TIGARD,OREGON PERSONAL SERVICES CONTRACT(SAMPLE TEMPLATE) THIS AGREEMENT made and entered into this day of , 20 by and between the City of Tigard, a municipal corporation of the State of Oregon, hereinafter called City, and , hereinafter called Contractor. RECITALS WHREAS, the City's 20 -20 Fiscal Year budget provides for services related to ;and WHEREAS City has need for the services of a company with a particular training, ability, knowledge, and experience possessed by Contractor,and WHEREAS 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: 1. SERVICES TO BE PROVIDED Contractor shall initiate services immediately 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 and by this reference made a part hereof Any and all work assigned by the City will be contained in subsequent scope of work as needed 2. EFFECTIVE DATE AND DURATION This Agreement shall become effective upon the date of execution, and shall expire, unless otherwise terminated or extended, on , 20 All work under this Agreement shall be completed prior to the expiration of this Agreement. 3. COMPENSATION The City agrees to pay Contractor in accordance with the fee schedule outlined in Exhibit A for performance of those services described herein and in any subsequent agreements that arise from the work under this Agreement. The total amount paid to the Contractor by the City shall not exceed and /100 Dollars ($ ) if all task are completed. Any and all payments made to the Contractor shall be based upon the following applicable terms: A. Payment by City to Contractor for performance of services under this Agreement includes all expenses incurred by Contractor, with the exception of expenses, if any identified in this Agreement as separately reimbursable. B. Payment will be made in installments based on Contractor's invoice, subject to the approval of the City Manager, or designee, and not more frequently than monthly. Payment shall be made only for work actually completed as of the date of invoice. C. Payment by City shall release City from any further obligation for payment to Contractor, for services performed or expenses incurred as of the date of the invoice. Payment shall not be considered acceptance or approval of any work or waiver of any defects therein. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 21 Close Date—April 6,2010 D. Contractor shall make payments promptly, as due, to all persons supplying labor or materials for the prosecution of this work. E. Contractor shall not permit any lien or claim to be filed or prosecuted against the City on any account of any labor or material furnished. F. Contractor shall pay to the Department of Revenue all sums withheld from employees pursuant to ORS 316.167. G. If Contractor fails, neglects or refuses to make prompt payment of any claim for labor or services furnished to Contractor or a subcontractor by any person as such claim becomes due, City's Finance Director may pay such claim and charge the amount of the payment against funds due or to become due the Contractor. The payment of the claim in this manner shall not relieve Contractor or their surety from obligation with respect to any unpaid claims. H. Contractor shall pay employees at least time and a half pay for all overtime worked in excess of 40 hours in any one week except for individuals under the contract who are excluded under ORS 653.010 to 653.261 or under 29 USC sections 201 to 209 from receiving overtime. I. Contractor shall promptly, as due, make payment to any person, co-partnership, association or corporation, furnishing medical, surgical and hospital care or other needed care.and attention incident to sickness or injury to the employees of Contractor or all sums which Contractor agrees to pay for such services and all moneys and sums which Contractor collected or deducted from the wages of employees pursuant to any law, contract or agreement for the purpose of providing or paying for such service. J. The City certifies that sufficient funds are available and authorized for expenditure to finance costs of this contract. 4. 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. 5. ASSIGNMENT/DELEGATION Neither party shall assign, sublet or transfer any interest in or duty under this Agreement without the written consent of the other and no assignment shall be of any force or effect whatsoever unless and until the other party has so consented. If City agrees to assignment of tasks to a subcontract, Contractor shall be fully responsible for the acts or omissions of any subcontractors and of all persons employed by them, and neither the approval by City of any subcontractor nor anything contained herein shall be deemed to create any contractual relation between the subcontractor and City. 6. STATUS OF CONTRACTOR AS INDEPENDENT CONTRACTOR Contractor certifies that: A. 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 670.700 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 RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 22 Close Date—April 6,2010 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. B. The undersigned Contractor hereby represents that no employee of the City,or any partnership or corporation in which a City employee has an interest,has or will receive any remuneration of any description from Contractor, either directly or indirectly, in connection with the letting or performance of this Agreement,except as specifically declared in writing. If this payment is to be charged against Federal funds, Contractor certifies that he/she is not currently employed by the Federal Government and the amount charged does not exceed his or her normal charge for the type of service provided. Contractor and its employees,if any, are not active members of the Oregon Public Employees Retirement System and are not employed for a total of 600 hours or more in the calendar year by any public employer participating in the Retirement System. C. Contractor certifies that it currently has a City business license or will obtain one prior to delivering services under this Agreement. D. Contractor is not an officer, employee, or agent of the City as those terms are used in ORS 30.265. 7. 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 agrees to indemnify and defend the City, its 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) that may be asserted by any person or entity which in any way arise from, during or in connection with the performance of the work described in this contract, except liability arising out of the sole negligence of the City and its employees. Such indemnification shall also cover claims brought against the City under state or federal workers 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. 8. INSURANCE Contractor and its subcontractors 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, including the operations of its subcontractors of any tier. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 23 Close Date—April 6,2010 The policy or policies of insurance maintained by the Contractor and its subcontractor 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 2,000,000 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. Commercial Automobile Insurance Contractor shall also obtain, at contractor's expense, and keep in effect during the term of the contract, Commercial Automobile Liability coverage including coverage for all owned, hired, and non-owned vehicles. The Combined Single Limit per occurrence shall not be less than $1,000,000. C. Workers' Compensation Insurance The contractor,its Subcontractors,if any, and all employers providing work,labor, or materials under this Contract that are subject employers under the Oregon Workers' Compensation Law shall comply with ORS 656.017, which requires them to provide workers' compensation coverage that satisfies Oregon law for all their subject workers. 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 workers' compensation coverage. All non-exempt employers shall provide Employers Liability Insurance with coverage limits of not less than$500,000 each accident. D. Additional Insured Provision The Commercial General Liability Insurance and Commercial Automobile Insurance policies and other policies the City deems necessary shall include the City, its officers, directors, and employees as additional insureds with respect to this contract. E. Notice of Cancellation There shall be no cancellation, material change, exhaustion of aggregate limits or intent not to renew insurance coverage without 30 days written notice to the City. Any failure to comply with this provision will not affect the insurance coverage provided to the City. The 30 days notice of cancellation provision shall be physically endorsed on to the policy. F. 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. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 24 Close Date—April 6,2010 G. 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 certificate will specify and document all provisions within this contract. A renewal certificate will be sent to the above address 10 days prior to coverage expiration. H. Independent Contractor Status The service or services to be rendered under this contract are those of an independent contractor. Contractor is not an officer, employee or agent of the City as those terms are used in ORS 30.265. 1. Primary Coverage Clarification The parties agree that Contractor's coverage shall be primary to the extent permitted by law. The parties further agree that other insurance maintained by the City is excess and not contributory insurance with the insurance required in this section. J. Cross-Liability Clause A cross-liability clause or separation of insureds clause will be included in all general liability, professional liability,pollution and errors and omissions policies required by this contract. Contractor's insurance policy shall contain provisions that such policies shall not be canceled or their limits of liability reduced without thirty (30) days prior notice to City. A copy of each insurance policy, certified as a true copy by an authorized representative of the issuing insurance company, or at the discretion of City, in lieu thereof, a certificate in form satisfactory to City certifying to the issuance of such insurance shall be forwarded to: City of Tigard Attn: Joseph Barrett,Sr.Management Analyst 13125 SW Hall Blvd. Tigard, Oregon 97223 Such policies or certificates must be delivered prior to commencement of the work. 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. 9. METHOD &PLACE OF SUBMITTING NOTICE,BILLS AND PAYMENTS All notices, bills and payments shall be made in writing and may be given by personal delivery, mail or by fax. Payments may be made by personal delivery, mail, or electronic transfer. The following addresses shall be used to transmit notices,bills,payments,and other information: RON AM M NO Attn: Attn: Address: 13125 SW Hall Blvd., Address: Tigard, Oregon 97223 Phone: (503) 718- Phone: ( ) Fax: (503) Fax: ( ) Email Address: Utigard-or.gov Email Address: RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 25 Close Date—April 6,2010 and when so addressed, shall be deemed given upon deposit in the United States mail,postage prepaid, or when so faxed, shall be deemed given upon successful fax. In all other instances, notices, bills and payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to who notices,bills and payments are to be given by giving written notice pursuant to this paragraph. 10. MERGER This writing is intended both as a final expression of the Agreement between the parties with respect to the included terms and as a complete and exclusive statement of the terms of the Agreement. No modification of this Agreement shall be effective unless and until it is made in writing and signed by both parties. 11. PROFESSIONAL SERVICES The City requires that services provided pursuant to this agreement shall be provided to the City by a Contractor that does not represent clients on matters contrary to City interests. Further, Contractor shall not engage services of an attorney and/or other professional who individually, or through members of his/her same firm,represents clients on matters contrary to City interests. Should the Contractor represent clients on matters contrary to City interests or engage the services on an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests, Contractor shall consult with the appropriate City representative regarding the conflict. After such consultation, the Contractor shall have seven (7) days to eliminate the conflict to the satisfaction of the City. If such conflict is not eliminated within the specified time period, the agreement may be terminated pursuant to Section 13 (B) (3) of this agreement. 12. TERMINATION WITHOUT CAUSE At any time and without cause, City shall have the right in its sole discretion, to terminate this Agreement by giving notice to Contractor. If City terminates the contract pursuant to this paragraph,it shall pay Contractor for services rendered to the date of termination. 13. TERMINATION WITH CAUSE A. City may terminate this Agreement effective upon delivery of written notice to Contractor, or at such later date as may be established by City,under any of the following conditions: 1) If City funding from federal, state,local, or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services. This Agreement may be modified to accommodate a reduction in funds. 2) If federal or state regulations or guidelines are modified,changed,or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement. 3) If any license or certificate required by law or regulation to be held by Contractor, its subcontractors, agents, and employees to provide the services required by this Agreement is for any reason denied,revoked,or not renewed. 4) If Contractor becomes insolvent, if voluntary or involuntary petition in bankruptcy is filed by or against Contractor, if a receiver or trustee is appointed for Contractor, or if there is an assignment for the benefit of creditors of Contractor. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 26 Close Date—April 6,2010 Any such termination of this agreement under paragraph (a) shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination. B. City, by written notice of default (including breach of contract) to Contractor, may terminate the whole or any part of this Agreement: 1) If Contractor fails to provide services called for by this agreement within the time specified herein or any extension thereof, or 2) If Contractor fails to perform any of the other provisions of this Agreement, or so fails to pursue the work as to endanger performance of this agreement in accordance with its terms, and after receipt of written notice from City, fails to correct such failures within ten (10) days or such other period as City may authorize. 3) If Contractor fails to eliminate a conflict as described in Section 11 of this agreement. The rights and remedies of City provided in the above clause related to defaults (including breach of contract) by Contractor shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. If City terrnmi ates this Agreement under paragraph (b),Contractor shall be entitled to receive as full payment for all services satisfactorily rendered and expenses incurred, an amount which bears the same ratio to the total fees specified in this Agreement as the services satisfactorily rendered by Contractor bear to the total services otherwise required to be performed for such total fee; provided, that there shall be deducted from such amount the amount of damages, if any,sustained by City due to breach of contract by Contractor. Damages for breach of contract shall be those allowed by Oregon law, reasonable and necessary attorney fees, and other costs of litigation at trial and upon appeal. 14. ACCESS TO RECORDS City shall have access to such books, documents, papers and records of Contractor as are directly pertinent to this Agreement for the purpose of making audit,examination,excerpts and transcripts. 15. FORCE MAJEURE Neither City nor Contractor shall be considered in default because of any delays in completion and responsibilities hereunder due to causes beyond the control and without fault or negligence on the part of the parties so disenabled, including but not restricted to, an act of God or of a public enemy, civil unrest, volcano, earthquake, fire, flood, epidemic, quarantine restriction, area-wide strike, freight embargo, unusually severe weather or delay of subcontractor or supplies due to such cause; provided that the parties so disenabled shall within ten (10) days from the beginning of such delay, notify the other party in writing of the cause of delay and its probable extent. Such notification shall not be the basis for a claim for additional compensation. Each party shall,however,make all reasonable efforts to remove or eliminate such a cause of delay or default and shall, upon cessation of the cause, diligently pursue performance of its obligation under the Agreement. 16. NON-WAIVER The failure of City to insist upon or enforce strict performance by Contractor of any of the terms of this Agreement or to exercise any rights hereunder should not be construed as a waiver or relinquishment to any extent of its rights to assert or rely upon such terms or rights on any future occasion. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 27 Close Date—April 6,2010 17. NON-DISCRIMINATION Contractor agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statues, rules, and regulations. Contractor also shall comply with the Americans with Disabilities Act of 1990, ORS 659.425, and all regulations and administrative rules established pursuant to those laws. 18. ERRORS Contractor shall perform such additional work as may be necessary to correct errors in the work required under this Agreement without undue delays and without additional cost. 19. EXTRA(CHANGES)WORK Only the City's Project Manager for this Agreement, John Goodrich, Utility Division Manager, may authorize extra (and/or change) work. Failure of Contractor to secure authorization for extra work shall constitute a waiver of all right to adjustment in the contract price or contract time due to such unauthorized extra work and Contractor thereafter shall be entitled to no compensation whatsoever for the performance of such work. 20. WARRANTIES All work shall be guaranteed by Contractor for a period of one year after the date of final acceptance of the work by the owner. Contractor warrants that all practices and procedures, workmanship and materials shall be the best available unless otherwise specified in the profession. Neither acceptance of the work nor payment therefore shall relieve Contractor from liability under warranties contained in or implied by this Agreement. 21. ATTORNEY'S FEES In case suit or action is instituted to enforce the provisions of this contract, the parties agree that the losing party shall pay such sum as the court may adjudge reasonable attorney fees and court costs, including attorney's fees and court costs on appeal. 22. GOVERNING LAW The provisions of this Agreement shall be construed in accordance with the provisions of the laws of the State of Oregon. Any action or suits involving any question arising under this Agreement must be brought in the appropriate court of the State of Oregon. 23. COMPLIANCE WITH STATE AND FEDERAL LAWS/RULES Contractor shall comply with all applicable federal, state and local laws, rules and regulations, including, but not limited to, the requirements concerning working hours, overtime, medical care, workers compensation insurance, health care payments, payments to employees and subcontractors and income tax withholding contained in ORS Chapter 27913, the provisions of which are hereby made a part of this agreement. 24. CONFLICT BETWEEN TERMS It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument in the proposal of the contract, this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. 25. AUDIT Contractor shall maintain records to assure conformance with the terms and conditions of this Agreement, and to assure adequate performance and accurate expenditures within the contract period. RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 28 Close Date—April 6,2010 Contractor agrees to permit City, the State of Oregon, the federal government, or their duly authorized representatives to audit all records pertaining to this Agreement to assure the accurate expenditure of funds. 26. SEVERABILITY In the event any provision or portion of this Agreement is held to be unenforceable or invalid by any court of competent jurisdiction, the validity of the remaining terms and provisions shall not be affected to the extent that it did not materially affect the intent of the parties when they entered into the agreement. 27. CONDITIONS OF SUPPLYING A PUBLIC AGENCY Where applicable, seller 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. 28. HOURS OF LABOR If labor is performed under this order, then no person shall be employed for more than eight (8) hours in any one day,or forty (40) hours in any one week, except in cases of necessity, or emergency or where the public policy absolutely requires it, and in such cases, except cases of contracts for personal services as defined in ORS 279A.055,the labor shall be paid at least time and a half for all overtime in excess of eight (8) hours a day and for all work performed on Saturday and on any legal holidays as specified in ORS 279C.540. In cases of contracts for personal services as defined in ORS 279A.055,any labor shall be paid at least time and a half for all hours worked in excess of forty (40) hours in any one week, except for those individuals excluded under ORS 653.010 to 653.260 or under 29 USC SS 201-209. 29. MEDICAL CARE AND WORKERS'COMPENSATION Contractor shall promptly,as due,make payment to any person,co-partnership,association or corporation, furnishing medical, surgical and hospital care or other needed care and attention incident to sickness or injury, to the employees of such Contractor, of all sums which the Contractor agrees to pay for such services and all moneys and sums which the Contractor collected or deducted from the wages of the employees pursuant to any law, contractor agreement for the purpose of providing or paying for such service. 30. COMPLETE AGREEMENT This Agreement and attached exhibits 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 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. Authorized by Tigard's Local Contract Review Board:_ RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 29 Close Date—April 6,2010 City of Tigard By: Craig Prosser, City Manager By:Authorized Agent of Contractor Date Date RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 30 Close Date—April 6,2010 EXHIBIT A SERVICES TO BE PROVIDED (TEMPLATE AGREEMENT SAMPLE INTRODUCTION SCOPE OF WORK SCHEDULE COST/RATE ESTIMATES RFP—Financial Consulting Services—Water Rate Study and Water SDC Charge Update Page 31 Close Date—April 6,2010 Addendum Publication: A n11,2010 CITY OF TIGARD, OREGON N Request forTroposals ADDENDUM #1 FINANCIAL CONSULTING SERVICES - WATER RATE STUDY AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE DATE DUE: Tuesday,April 6, 2010 TIME DUE: 2:00 p.m.local time Envelopes must be sealed and marked with project title. Proposers must submit one (1) original and five (5) copies of their proposal. i "PROJECT MANAGER IJik'E 'Q,UEg'rIO1yS TO. , John Goodrich,Utility Division Manager Joe Barrett, Sr. Management Analyst City of Tigard,Public Works City of Tigard,Financial&Information Services Phone: (503) 718-2609 Phone: (503) 718-2477 Fax: (503) 684-8840 Fax: (503) 684-2797 Email: iohng_ci,ti arg d-or_goy Email: josephatipard-or.gov SUBMIT BIDS TO: Joe Barrett, Sr. Management Analyst City of Tigard—Information Desk 13125 SW Tull Blvd. Tigard,Oregon 97223 The following information serves as Addendum #1 to the City of Tigard's Request for Proposals for Financial Consulting Services—Water Rate Study and Water System Development Charge Update. CITY OF TIGARD REVENUE ANALYSIS& COST ALLOCATION PLAN For reference purposes,a section of the City's FY 2009-2010 budget,entitled"Revenue Analysis,"is attached. Information on revenues and interfund transfers (cost allocation)is contained in this section.The City's entire budget can be found at«\v-,v.tigard-or.gov/city hall/departments/finance/budget.asp. PROJECT MANAGER CONTACT INFORMATION The Project Manager's phone number was incorrectly listed as (503) 718-26209.The correct number is (503) 718-2609 and is hereby incorporated into the RFP by means of this addendum. MEETINGS Meeting Addition The proposer shall present a 30-minute project introduction to the City Council and Intergovernmental Water Board no later than June 9,2010.This meeting is in addition to the meetings already outlined in the RFP and is hereby incorporated into the RFP by means of this addendum. TIMEFRAME/SCHEDULE This addendum contains scheduling changes which now afford the Proposer approximately 180 days to complete the water rate study and the water SDC update.With regard solely to project timeframes and scheduling,should there be any conflicting language between the existing RFP and this addendum, the addendum shall take precedence. Changes and additions to the schedules in the existing RFP are as follows: ■ A detailed Tentative 2010 Water Rate Study and Water SDC Update Project Schedule is attached and is hereby incorporated into the RFP by means of this addendum. ■ The proposer shall finalize all work for the water SDC update in a ready-to-adopt format by August 31,2010. ■ Approval to proceed to the public hearing notification phase for the water SDC update shall be no later than October 12,2010. ■ The proposer shall finalize all work for the water rate study in a ready-to-adopt format by October 19,2010. ■ The City Council shall consider the Water Rate methodology on November 9,2010. e The City Council shall hold the required public hearing for and consideration of the water SDC update no later than December 14,2010. ■ References to a 90-day completion timeline as specified in Section 4.1 E.3.,Section 4.2 D.2.,and Section 5 A.7. are no longer applicable. ■ Proposer acknowledges that the City reserves the right,at its sole discretion, to modify the tentative project schedule,and any other timeframes and schedules associated with this RFP,as required to best meet the needs of the City. SECTION 9, FEE SCHEDULE Proposers may submit a detailed work plan or work breakdown structure in lieu of Section 9,Fee Schedule. Proposer shall provide separate detailed work plans or work breakdown structure for the water rate study and the water SDC update. The work plan or breakdown structure should clearly state"Section 9,Fee Schedule,"and must include all information required on the Fee Schedule including the total financial service cost. SELECTION COMMITTEE AND PROCESS Based on the criteria scoring listed in the RFP, a selection committee of public works and finance department staff shall select up to four"most qualified"proposers. These proposers shall be invited to provide a presentation of their proposal as part of the final selection process. The City is planning to tentatively hold these presentation interviews on Tuesday,April 13'x' and Wednesday,April 14th. The presentations shall be scheduled between 8 a.m. and noon. Proposers shall limit their presentations to one hour with an additional 30 minutes for questions. Final selection to award the contract shall take place by April 22,2010. The City reserves the right to change the dates and times of this schedule or to request follow up interviews as needed. MISCELLANEOUS INFORMATION Note: The following is provided as additional background information. However, as stated in the RFP, all questions or inquiries regarding this RFP are to be directed to the project manager or senior management analyst. The City's financial advisor is Pat Clancy,Western Financial Group.Additionally the City has retained Carollo Engineers for SDC engineering/technical services. Carollo will provide assistance as needed to the successful proposer. Therefore no additional engineering services should be required within the scope of the project proposal. Tentative 2010 'dater.Rate-Study and SDC Update Project Schedule Note:Proposer aclmowledaes that the City reserves the ribabt; at its sole,discretion, to modify this project schedule, and any other timeframes and.schedules associated with this RFP, as required to best meet the needs of the City. Project lection 'Tentative.Schedule;Date Comments Publish and Release for Bid Friday, March 19th Done Pro osals Due Tuesday,A ril 6th Close Bids Review and Select Proposer Friday,April 16th Conduct Any Optional Interviews LCRB Packet to Council Tuesday,April 27th Prepare Packet Documents to Award;Contract to Pioposer LCRB (Council) Meeting Tuesday, May 11th LC RB Consent Agenda -Award of Contract Presentation &Packet Submitted Tuesday, May 25th Presentation Slides and Packet for 6/15 Workshop Am)royal IWB Meeting- 30 minutes Wednesday,June 9th Project Introduction by Proposer Council Workshop—30 minutes. Tuesday,June 15dh Project Introduction by Proposer Presentation&Packet Submitted Tuesday,June 29th. Presentation Slides and Packet for.7/20 Workshop Approval IWB Meeting-90 minutes Wednesday,July 14th Proposer Presentation on Water Rate'Study Findings—IWB Recommendations Regarding Cost Allocation and Rate Design Criteria Proposer Presentation on SDC Update Findings Council Workshop—6.0 minutes Tuesday,July 20th Proposer Presentation on Water Rate Study Findings—Council Direction Regarding Cost Allocation and Rate Design Criteria Council Workshop-30 minutes Tuesday,July 20dh Proposer Presentation on SDC U' date Findings Presentation&Packet Submitted Tuesday,August 31st Presentation Slides and Packet for 9/21 Workshop., Approval GG 4/1/10 IWB Meeting-60 minutes Wednesday, September $th Proposer Presentation on Final Recommendations Water Rate Study Proposer Presentation on Final Recommendations Water SDC Update Council Workshop—60 minutes Tuesday, September 21st Proposer Presentation on Final Recommendations Water Rate Stud Council Workshop—30 minutes Tuesday, September 21st Proposer Presentation on Final Recommendation for Water SDC Update before Public Review Process Presentation &Packet Submitted Tuesday, September 21st Packet Approval. - Council for 10/12 Council Meeting Consent Agenda Prepare Packet.for Water SDC Update Public Hearing Review Notification on 12/14 Council Meeting Tuesday, October 12th Council Consent Agenda - Request Permission to Post for 60-Day Public Review Water SDC Update. Presentation &Packet Submitted Tuesday, October 19th Presentation Slides and Packet for 11/9 Workshop Approval Council Business Meeting—Public Tuesday, November 9th Council Adoption of Water Rate Hearing- 30 minutes Study and Resolution Fees and Charges Schedule Council Business Meeting— Tuesday;November 9th Council approval to post for 20 minutes inspection Water SDC Update Resolution Presentation &Packet Submitted Tuesday, November 23rd Presentation Slides and Packet for 12/14 Council Meeting Approval Council Packet for Upcoming Water SDC Update Public Hearing and Request to Adopt Resolution Council Business Meeting—Public Tuesday, December 140h Water SDC Update Public Hearing- 60 minutes Hearing—Council Considers Resolution to Adopt Water SDC Update GG 4/1/10 CURRENT REVENUE SIA1 MARY BY FUND Current.Revenue (Excludes Beginning Balances and Trarisfets) Actual Actual Revised Projected Adopted Funds 2006-07 2007-08 2008-09 2008-09 2009-10 General Fund S20,820.927 S23;692,024 S24,086,291 $23,423973 S23 910364S23.91 0;364 Total General fund 20,820,927 23,692,024 24,086,291 23,423,973 23,910,364 23,910;364 Sanitary Sewer Fund 52;279,008 52,563,822 S1,827,813 $'b,866,59G $1,746,592 S1,746,592 Stotmwater Fund 1,191,706 1,626,061 1,605,200 1,574,568 1,769,958 1,769,958 WatcrQuality/Quantity Fund 129,204 107,107 83,750 62,848 25,368 25,368 Water Fund 7,655,131 7,604,890 8,334,844 7,543;439 8,618,398 8,678,398 Water SDC Fund 368,158 50,813 254;000 96,989 89,838 89;838 Water CIP Fund 691,020 435,444 18,470,000 3,143.028 2,714,564 2 714,564 Total Enterprise Funds $33,435,174 $36,082,161 $54,661,898 $37,711,441 514,964,718 $14,964,718, Gas Tax;Fund $2;779,797 '$2,423,497 S3,928,796 $2,189,634 S9,117,388 $9,117;388 CityGas Tax Fund 713,355 7.68,750 638;5Q0 657,217 657;217 Electrical Inspcdion Fund 249,305 203,682 211,023 118,500 124,378 124,378 Building Fund 1,546,971 1,081,858 1,483,969 494,450 727,368 727,368' Criminal Forfeiture Fund 2,533 2,042 6,517 4;200 5,534 51534 TreeRepla=ncntFund 0 0 0 0 100,000 100,000 UbraryTrust Fund 0 0 0 0 4,524 4524 Total Special Revenue Funds, $4,578,606 $4,424,433 $6,399,055 $3,445,284 $10,736,409 $10,736,409 Centrad Services Fund S76,212 $71,569 $45,000 $11,500 $7,338 $7,338 Elect/PropL ty Management Fund 4,091 3,997 1,450 2,000 1,228 1,228 lnsurana.Fund 36;493 100.076 53,350 116,782 67;849 67,849 Total Internal Services Funds $116,796 $175,642 $99,800 $130,282 $76,415 $76,415 Bancroft Debt-Scrvicc Fund 5319,654 $265,474 S219,307 5162;800 $13,5,184 $135,184 General Obligation Debt Sen7tt Fund 933,864 1,010.052 995,813 825:803 993,041 993,041 Total Debt Service Funds $1,253,518 $1,275,526 $1,215,120. $988,603 $11128;225 $1,128,225 Facilitie.9 Project Nnd $76,269 $52 013 $9,000 $9;979 $3,932 $3,932 Traffic Impact h'ce Fund 51,107,158 $875,415 $745,000 $369;629 S162;602 S16-2601- Underground Utility'Fund 163,282 $133,373 $70,000 $78,175 $56;414 $56,414, Strcct Maintenantx Fund 862,892 $873,871 $798,000 $876,588 S860,000 $860;000 Parks Capital Fund 272,633 S756,374 $1,273,538 S65,560 $1,125,270 51,125;270 Parks SDC Fund 1,101,196 596,524 857,586 281,641 206,300 206,300 Tigard,TriaagIc IIID#1 0 0 2,455,500 0 0 0 Traffic Development Tax 0 0 0 0 .100,622 100 622. Total Capital Projects Funds $3,583,430 $3477,569 $6,208;624 $1,681,572, $2,515,140 $2,515,140 Total Revenue $63,488,451 $68,927,354 $92,670,788 $67,381,156 $53,331,271 $53,331,271 REVENUE ANALYSIS-PAGE 51 PROPERTY TAX SummARY Tigard's permanent property tax rate of$2.5131 per thousand is applied to the assessed value (AV) of property in the City each year. This permanent tax rate produces revenues to support General Fund operating costs such as Police; Library, and Parks. Under dne Oregon Constitution (as amended by Measure 50 in 1997), assessed values may increase 3%per year. The City's total property assessed value has grown at a rate greater than 3% due to new construction and annexations. New construction is added to the tax.rolls, nota real marl et value, but at a calculated lower rate,which is on average about 60% of real market value in Tigard. The City's total projected assessed value is multiplied by its permanent tax rate per$1,000 of assessed value to calculate the anticipated property taxes to be received. However,.the City assumes a 93% collection rate on property taxes, so budgeted property tax revenues are approximately 93% of estimated total property taxes for FY 2009-10. Actual Actual Est.Actual Prosed Tax,Information } 2006-07 2007-08 "2008-09 2069-10 Property Times General Fund $ 10 799,266 $ 11,025,29 6 $ 11,312,304 $ 11,640,610 GO Debt.Scrvkc $ 924,991 .,$ 1,002,985 $ 821,518 $ 9.91 563 Total Tax Levied $ 11,724,251 $ 12 028,281 } $ 12,193,82-7 } $ 12 63,2 173 Assessed Values } Prior Ycar Assessed Value $ 4,572,357,820 $ 4 732 621 0,73 Allowable 3%Increase $ 137,170,735 $ 141,978,632 Est Annexations&•New Const $ 58,000'000 $ 29-000 000 Total-Assessed Value { { $ 4,767,528,555 } $ 4,903,599,705 Tax Rates/S'4000 A/V Genera] Fund Permanent Rate $ 2.51310 $ 2.51310 $ 2.51310 $ 251310 GO Debt Service $ 0.21350 $ 0.2?733 $ 0.17510 $ 0.22187 Tax Rate{ $ 2.72660 } $ 2.74043 } '$ 2:68820 }_$ 2.73497 Assessed Value of Average Home $ 189,631 $ 1'105,042 $ 200,03 } 206920 Genera]Fund $ 476.56 $F—I490.16 $ 504.86 $ 520.01 GO Debt Service } $ 40.49 $ 44.34 $ 35.18 S 45.91 Total Estimated Tax per Household $ 517.05 } $ 534.50 { $ 540.04 + $ 565.92 } PAGE 52-CITY of TIGARD ASSESSED VALUATION At the beginning of each fiscal year, the Washington County Assessor determines assessed values'of p'rojjerdies in the City. Prior to Measure 50, Oregon's property tax system was based on dollars levied and not tax rates, therefore increased values had the effect of lowering property tax rates, not,changing the amount of taxes that could be collected. With the approval of Measure 50 in 1997, assessed values on individual properties were rolled back to.FY 1.995-96 levels and then reduced by"10%. Assessed values are limited to an increase of 3%per year: The difference between market value and,assessed value is expected towiden in future years due to the 3% cap on assessed value growth. For FY 2009-10,Tigard's total assessed value was 58% of its real market value: Assessed value is used for spreading the operating levies,wlvle market values are used to meet the Measure 5 cap requirements and to spread debt service levies,which are exempt from Measure 50. $5,000,000,000 era . 3"+- ° 54,000,000,000 `i $3,000,000,000 �� a ' ll ». . $2,000,000,000 gg j $1,000,000,000 $0 FY 01-02 FY'02-03 FY 03-04 FY 04-05 FY OS-06 FY-0"7 FY 07-08 FY 08-09 FY 09-10 Fiscal Year Assessed Value FY 01-02 $3,470,5783863 FY 02-03 $3,621,710,974 FY 03-04 $3,754,359,399 FY 04-05 $3,908,208;975 FY 05-06 $4,087;904,786 FY 06-07 $4,344,958,735 FY 07-08 $4,572;357,820 FY 08-09 $4,732,621,073 FY 09-10 $4;744,069,210 (estilnated) REVENUE ANALYSIS-PAGE 53 7 PROPERTY TAX REVENUE Property Ta.Revenues 12000000 10500000 9000000 7500000 6000000 . 4500000VIA ' � 4 a 3000000 ' ' 1500000 FY- 2005-06 FY 2006-07 P i'2.007-08 FY 2008-09 Est. FY 2009-10 Actual Actual Actual Actual Adopted 0 Property Tax Revenue E3 Debt Service Revenue The City has a General Obligation Bond property tax levy. In May 2002,Tigard voters approved a $13 million General Obligation Bond to construct a new library. FY 2009-10 property tax revenues include die debt service For this bond. PAGE 54-CIT-Y OF TIGARD E# STATE REVENUE SHARING State Revenue Sharing $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000;000 $500,000 $0 FY 2005-06 FY 2006-07 FY 2007-08 F'Y 2008-09 F o. FY 2009-10 Actual Actual Actual Actual Adopted State Revenues include gas tax, cigarette tax,liquor tax,and State revenue*sharing. State revenues are distributed to cities by state-based formulas incorporating population and per capita incomes. These collective revenues have shown remarkable consistency over the past few years. It is anticipated that the City will see a slight increase in the State Gas Tax in FY 2009-10 compared with the previous year. A drop in the State Gas Tax for 2008-09 was,a result of below average gas'tax receipts compared to State projections,which drove the overall-per capita revenue rate down significantly. Budgetary revenue estimates are based on information provided by the League of Oregon Cities fol- lowing consultation with the State. REVENUE ANALYSIS-PAGE 55 ENTERPRISE FUNDS - USER FEES ; Enterprise Funds -User Fees $12,000,000 u� $10,000,000 $8,000,000 $6,000,000 . $4,000,000 $2,000,000• h F'Y2005-06 FY 2006-07 F'Y2007-08 F'Y2008-09 FY2009-10 Actual Actual Actual Est.Actu21 Adopted User fees include Water,Sanitary Sewer,and Storm Drainage fees charged to all users of such services. The Sanitary and Storm fees are established by the Clean Water Services Agency (CWS) and updated by the Agency each year. The City Council, through an intergovernmental agreement with other sys- tem participants,sets the hater rates. The City does not own its own water source and is currently in the process of evaluating several op- tions. Once a permanent water supply source is identified,the City will incur substantial capital invest- ment costs related to the expansion of the water supply system and will need to issue bonds to finance the capital expenses. This will require a stable revenue source for the debt service. Beginning in FI' 2008-09,a four year annual water rate increase of 7%was implemented. Per the intergovernmental agreement with CWS, the City retains only a portion of the sanitary and storm fees it collects. Each year,CWS revises the split for sanitary sewer fees. It is anticipated that the sanitary sewer revenues will increase slightly in F1'2009-10. In June 2007 the City Council approved a 5% franchise fee for Storm Water management dhat began Julyl, 2008 and is reflected in the budget. PAGE 56-CITY OF TIGARD CONNECTION FEES Connection Fees $1,400,000 $1,200,000 $1,000;000 $800,000 $600,000 E $400,000 - $200,000 �d FY-2005-06 FY 2006-07 FY20,07-08 FY 2008-09 Est. FY 2009-10 Actual Actual Actual Actual Adopted [DWater ®Sewer p Roads p Parks Connection fees include Traffic Impact fees (TIF),storm and sanitary sewer connection charges,water connection and system,development Cha ges,and parks system development charges. Tlvs revenue category has shown a marled decline in recent years which coincides with the decreased level of devel- opment activity occurring within Tigard:. REVENUE'ANALYsIs-PAGE 57 PERMIT REVENUE Permit Revenues $3,500,000 $3,000,000 $2,500,000 $1,500,000 , $1,000,000 re s $500,000 Ma FY 2005-06 FY2006-07 FY2007-08 FY 2008-09 FY2009-10 Actual Acbhl Actual Est.Actual Adopted Permit fees are recorded in the Building Fund, the Electrical Inspection Fund, the General.Fund,and, formerly;in theUrban Services Fund. Nearly aIl fees•are related to development activity and,there- fore,reflect the level of that activity. Tigard is experiencing a decline in activity,as is much of the state and the nation, and the revenue trend reflects this decline. It is projected that this decline Nvill.continue in FY 2009-10 and the decrease in adopted revenues reflects this trend. The prunary fees that are represented in the chart include: Engineering Public Improvement Fee, Sign Permits,Land Use Planning Application Fees,and all related Building Permit Fees. PAGE 58-CITY OF TIGARD COUNTY SHARED REVENUE County Shared Revenues #z,sao,ono $2,400,000 $2,000,000 #1,600,000 i y $1,200,000 s $800,000 $900,000 r $0 FY 2005.06 FY 2006-07 FY 2007-08 FY'2008-09 Est FY2009-10 Actual Actual Actual Actual Adopted 10 County Gas Tax ®Hotel-Motel Tax p WCCLS County Shared Revenues include"the Washington County Gas Tax; the Was County Coopera- tive Library System'(WCCLS) levy;and a countywide Hotel/Motel tax. Washington County collects a one=cent per gallon tax on gasoline,which is.distributed.to cities in the County to be used for road maintenance activities. Since the County has not increased the gas tax,as an increase has,to.be approved by voters, this revenue source has seen very minor growth. This trend is being projected to continue in FY'2009-10. The Hotel/Motel tax is collected by Washington County at a 7%rate and is distributed to all participat- ing jurisdictions. Tigard receives about one third of the amount collected in the city=limits. Tax collec- tions are directly related to room rental rates, the number of hotel and motel rooms within the City, and the economy. As the economy continues to rebound,it is projected that these revenues will con- tinue to increase. WCCLS funds come from the County property taxes generated from the County's permanent property tax rate. WCCLS funds are distributed to cities with public libraries based upon a formulaheavily weighted to increases in cfrcuhation. In November 2006,,a new WCCLS levy was passed by the voters. This levy increased revenues by nearly $1 million annually REVENUE ANALYSIS-PAGE 59 --i i 4 FINE AND FORFEITURE REVENUE a i Fane and Pnrfegture Revenues $800,000 $700,000 ' : $600,000 $500,00041 $400,000 $300000 $200,000 _ $100,000 MOM FY2005-06 FY2006707 FY2007-08 FY2008-09Est. FY2009-10 Actual Actual Actual Actual Adopted Q Traffic-Civil Infractions OI.a`brary Fuzes This source of revenue includes traffic and civil infraction citations,which,are processed by the Mu- nicipal Court,and fines for late and lost materials at the Library. Fine collections are directly related to the number of citations issued. The bail schedule is updated annually by the Municipal Court Judge. The FY 2009-10 budget revenues include an additional Firies &Forfeitures-Traffic revenue of $125,000 associated with the additional Traffic Officer FTE in the Police Department. FAGS 60-CITY OF TIGARD i I INTEREST EARNINGS, Interest Earnings $2 50gOOQ $%OORDDo $1,500;000 $1,00QQQQ $504000 $0 FY 200546 FY 2006-07 FY 2007-08 FY 200849 Ect FY 2009-1) A6Actual Actual Actual Adapted Interest earnings are generated from the investment of cash on hand in various funds of the City. In- terest earnings are directly attributable to the amount of cash available for investment and current in- terest rates. The City is assuming an interest.rate of 1% for its investments due to the low rate of re- turns in the current market. It is anticipated that interest.earnings will also be down in FY 2009-10 as capital improvement project needs begin to take from the fund balances in many funds. REVENUE ANALYSIS.-PAGE 61 FRANCHISE FEE REVENUE Franchise Fee Reitnue $5,000,o0ai $4,500,000 } 41 $3,500,000 fi kx. $3,000,000 ' $2,500,000 $2,000,000 $1,500,000 $1,000,000 , $500,000 is � �7,777 � , A� p FY 2005-06 FY2006-07 FY 2007-08 FY 2009-09 M00940 Actual Actual Actual Est.Actual Adopted Franchise fees are charged to private utilities for the use of the public rights-of-way. Private franchised activities paying the fee include electricity,natural gas, telecommunications,cable television, and solid waste haulers. In FY 2006-07,the City began charguig a 5% franchise fee to its public utilities;water and sanitary sewer. All franchise fees are computed as percentage of gross proceeds generated within Tigard's city limits. All franchises,with exception of cable television,are directly between the City and the franchise holder. The Metropolitan Area Communications Commission (MACC),a consortium of cities in the metro area,administers the cable television franchise. The increase in franchise fee revenue in FY 2009-10 is due to a continued growth in population. In January 2006, the solid waste franchise fee was increased from 3% to 4%. Also, there has been a con- siderable increase in the natural 'gas franclise fees received,which is partially due to an increase in the franclvse fee in 2004. Telecommunication franclvse fees tend to fluctuate from year to year. How- ever, the City has experienced a small upward trend over the last four years. Therefore,it is anticipated that telecommunication franchise fees will continue to increase slightly in FY 1009-10. PAGE 62-CITY OF TIGARD 3 FRANCHISE FEE 1ZEVENuE Current franchisees and franchise rates are: Senrice Provider Rate Cable Television Comcast/Verizon 5.00% Electricity Portland General Electric 3.50% Garbage All haulers 4.00% Natural Gas Northwest Natural Gas 5.00% Sanitary Sewer City of Tigard 5.00% Telecommunications All providers 5.00% Water City of Tigard 5.00% REVENUE ANAI:YSIs-PAGE 63 } INTERFUND TRANSFERS Interfund transfers are the transfer of revenues Between funds when the revenue is.received in one fund for an expense that occurs in another fund or when City functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund (far example, Financial Operations Division providing utility billing services for die eater, Sani- tary Sewer,Stormwater,and Street Maintenance Funds). A transfer-out is an expense to the fund that is transferring the inoney out or buying services. A trans- fer-in is a resource to the .fund that is receiving the money or selling the service. For every expense transfer-out, there is a corresponding resource transfer-in. The corresponding transfers must show the same dollar amount: The various types of interfund transfers are defined below: General Resource Transfer Transfer of resources from.' ne fund to another which are not based upon a cost allocation plan, actual expenditure, or any expectation of a payment for services provided. This type of transfer is simply a transfer of resources from one fund to another. Direct Resource Transfer Transfer of resources from one fund to another which are based upon a cost allocation plan and actual expenditures or an expectation of a payment for services provided. This type of transfer is typically based upon actual expenditure needs by a certain fund and are"trued up" from the budget figure based upon actual expenditures. Debt/Loan Repayment Transfer Transfer of resources from one fund to another to pay either all or a portion of an interfund loan. This type of transfer is typically based upon a five-year repayment schedule for capital loans. Indirect Cost Transfer Transfers received for services provided,which have been allocated based upon a cost allocation plan. The Indirect Cost Transfers Out are typically budgeted along with a division's operating budget to show the true cost for that division to the City. For the City, the following bases of allocation are used for diose functions or programs listed below: City Management—size of budget Finance—size of budget Financial Operations—size of budget Human Resources—FTE count Risk Management—FTE/Auto Assignment/Bond Premium/Property Premiums Inforination Technology— number of personal computers assigned to budget unit and number of li- censes for specific software applications. Office Services—percent of time spent working on projects City Recorder/Records—percentage of Council items processed/percentage of records requests Property Management—square footage Fleet Maintenance—vehicle assignment Since the internal transfers are complex and can be difficult to follow and trace through the budget document, die following explanation is provided for each transfer,by fund. PAGE 64-CITY of DGARD IwEkFLTND TRANSFERS From ToAmount T -Description Transfer of funds to support the Community BuildingFund General Fund IS, 141-4051 Indirect iDeveloprnentAdministration Division 7 7777"Xll�—,;'77 -� Y,- "i ov,"-", 7 T', aiel4uiidm� Central Services I Debt/Loan �Tedinolo Repayment of loan used for Capital OutlayFund General Fund S 265,426 Repayme o MF v, EN N, Criminal Forfeiture Transfiir of funds 'for. allowed expenses on Police Fund General Fund S 10,000 0.000 Direct (relatedra s ] RR NAM afw Electrical cal-inspections by the Inspecuosi Fund. I BuildingFund $ 122 8G0 Direct (Buildin Division v_ 7 ITransfer of funds to support Street Maintenance r-,—.—]P—A c 118 399�IjDi�cvrr program 22m Tax.Fund d �Gw�e-IF.nd�1 $ 1 (Transfer of fund-, to support pport the Public Works Gas Tax Fun GencrabFund S 237,704 Indirect lAdministration Division Transfer of funds to support the,Captial Construction Gas Tax'Fund General Fund IS 389,428 Indirect I&Trans ITransfer of funds 'to support Current Planning Gas Tax Fund General Fund Is 1-7,564 Direct Division ITransfer of Roll-over -funds to pu,chase a Street Gas Tax Fund General Fund I S 140Direct,000 Maintenance Division vehicle L Gastax.Fund I Fadlides Fund 1$ 312825 1 General (Transfer dffunds for new.Pw* facilities Q�r Transfer of fund.s to support the City's Housing Code General Fund I Building Fund I S 56.075 Direct (Ins edtions pr6krkih Operational Loin for FY 2009-10 to stabiLlike the General Fund I BVilding Fund I S 300,000 Direct IBuilding Fund Central sdvims I Transfer of funds s to support the City's Passport 'General Fund Fund S 51,331 Direct Program I (CentralTransfer of funds to support the City's HR/PY IFAIGencralFund fuSnervices' I $ 100,000 Direct Project General Fund Facilities Fund 1$ 86;375 General ITransfer ta"fund various faclities'-related CIP proiects Tree Replacem en t Transfer of tree kplacment/mitigation revenues General Fund Fund. S- 26-8000 General (recorded in the.General Fund Debt/Loan Repayment of Clute Property loan - 2nd year of four- General'Fund Water CIPFund S 109,826 Repayment year repayment schedule Dibt/iban I09' Repayment of Cook Park Loan borrowed in FY'2008-ParksSDCFund GeheralFund gyp$ 278,053 Repayme Debt/Loan Repayment ofC lute Property loan- 1st year of three- Parlis.SDC,Fund I Water-CIPFund 1 $, 101,759 I Renavment vearrepayment schedule kEVENuE ANALYSIS-PAGE 65 I,NTERFUND TRANSFERS Sanitary Sewcr Central tiervia.s Fun I Fund I S 19,358 I Indirect (Transfer of funds to support UtilityBiMn*program I Sanitary Sewer Fund Facilities Fund I S 22,725 I General ITnnsfer of funds for'ncW PXXI facilities Sanitary SewerI ( Transfer of funds to support the Public Worksl FundS 169,789 ' Gencral.Fund Indirar Administration Division Sanitary Sewer II I ITrnnsfer of funds to support`rhe Captinl Construction Full Fud General Fund 181 532 Indirect &Trans-portation Division Sanitary Sewer Transfer of funds to support Current Planning Fund Gener.al.Fund I-$ 18:295 Direct IDivision 'ot�ESan'ita`v�3�stns f�?u '°' � _�.� 698 �:.�, `,��.. :� `��"� :� ,�.,ri• -� .,.�«:. „�`�`' ��;. :�.� ' Ccrrntn]Scntias StormwatcrFund Fund I.$ 63,162 I Indirect ITrhsferoffunds tosupport Udlitv,Billin ro run Stormwater Fund 1. FadliFund I S 27,275 General Transfer of funds for new PW facilities 1 Trtnsfer of funds to support the Public Works Stormwatcr Fund Genual Fund j$ 203,746 Indirect IAdministration Division I ' Transfer of funds to stipport the Captial Construction Stounwatcr•Fund Gcncril Fund 5 79 456 Indirect I&•Trans ortation Division Transfer of funds to support Current Planning I1 Storrriwatcr.Fund I General Fund IS 18,295 I Direct (Division Strret 111aintcriana� Ccrrtral Sciviers .. �� Fund Fund I.$ 84,000 I llired ITransferof funds to sugport Utility.Bill ihg program Dt�7' �!r`leCt:IVlaua'�'e�aasCC f}tt � ��O11D�:,c^c. ,.»q -r:.,- � "_� F° "_ K:,t `, �r S°' .€. _.''� �.s�'.�.i�:."•w`'�`^ Traffic Iin act Fee Transfer of funds to support the Ca tial Construction T'un I Gencx-d Fund I S 274,327 I IndirecC I&'Trans ortation Division P TrafbcIm act Fee Transfer of funds to support Current Planning P PP g Fund General Fund S 0,148 Direct Division TrafficImpactFee Transfer of funds to support the Development Fund General Fund I $ 11,096 I Direct (Engineering Division I Tree Replaaancrrt Debt/Loan Fund I General Fund L S 75,000 I Rcpayment I R-paymcnt.of loan used for tree planting projects �'"� �- •�-m "��, r r` Transfer of funds for misadlancous Library h6lity Trust Fund I Facilities Fund 15 100,000 Direct improvements I ' . I_ox ftT CentralScrvias Water Fund lend $ 331,115 I Indirect Transfer of funds to support Utility Billingra . I Water Fund 1 Fadlitics Fund 1$ 77,250 1 General ITransfer.of funds for new P\G fadlitics 1 I ( I ITransfcr of funds to support the Public Worksl Water Fund General7Fund S 577,281 Indirect Administration Division Water Fund 1 Water-CIP-Fund 1 $ 4,600 000 1 GmertI _ ITransfer to fund various water-related CIP projects 1 Debt/Loan Transfer of funds to line of credit payment'for Longl -Water Fund I,Water CIP Fund I S 150,000 I .Re avmcnt Tran\Cuter borroviin Water Quality/ uantiiv Fund Facilities Fun I $ 4 550 I Gcrrcril Transfer of funds for,new PW Erdlities Water Quality f Transfer' of funds to support 'the Public Wortrs uantity Fund I Genual Fund IS 33,958 I Indirect Administration Division , Wates Quality/ Transfer of funds to support the Ca tial Construction) I I I• PP Cap tial Fund General Fund S 74,237 Indirect &:Transportation Division ' Water,Quality/. I I I (Transfer of funds to support Current Planning)' Quantity Fund General Fund- $ 3,049 Direct Divisibn �„-,3{otal Ware r�� friclO:ui� `Y'���8 ,3a,:a:: .�_ ��x;: .Mx `�"�� ^`�• - 'm�5 ;� �.�o`ti+I�uaiarr'af'aFrt•s �,.�.. >`*g .� D�b�d� PAGE 66-CITY OF TIGARD �V City of Tigard June 4, 2010 Red Oak Consulting Attn: Paul Matthews, Project Manager 12670 NW Barnes Road, Suite 104 Portland OR 97229 NOTICE TO PROCEED City of Tigard Financial Consulting Services Water Rate Study and Nater System Development Charge Update You are hereby authorized to proceed with the work required under the aforementioned contract. This contract shall expire, unless otherwise terminated or extended, on February 28, 2011. Please contact me at 503.718.2595 orrg eer(a,,tigard-or.gov, if you have any questions. Sincerely, Greer Gaston Management Analyst 13125 SW Hall Blvd. • Tigard, Oregon 97223 0 503.639.4171 TTY Relay: 503.684.2772 0 www.tigard-or.gov a City of Tigard April 21, 2010 Mr. Paul Matthews Principal Consultant Red Oak Consulting 12670 NW Barnes Road, Suite 104 Portland, OR 97229 Re: City of Tigard Water Rate Study and SDC Update Request for Proposals Dear Mr. Matthews, Thank you for submitting a proposal regarding the City of Tigard Water Rate Study and SDC Update. The City received five proposals in response to our solicitation, all of which were submitted by well-qualified firms capable of providing the services as described in our request for proposal. The selection committee used a multiple review process to choose which firm would best meet the needs of the City to complete this project. The selection committee has recommended that the City Council accept your proposal to provide financial consulting services for the Water Rate Study and SDC Update project for the amount of$92,537.25 as a total financial service cost. All project tasks are to be completed by December 14, 2010 as provided by our tentative project schedule. The Council is scheduled to consider approval of this recommendation on Tuesday, May 11, 2010. I greatly appreciate the time and effort that you and Joe Healy provided to the City on short notice, especially the final interview with Dennis Koellermeier and Toby LaFrance. I will be in contact regarding the next steps toward awarding a contract with Red Oak Consulting after Council's approval. I look forward to working with you and Joe in the near future. If you have any questions, please contact me at your convenience. Sincerely, Xhn Goo •ch tility Division Manager 503.718.2609 13125 SW Hall Blvd. ® Tigard, Oregon 97223 ® 503.639.4171 TTY Relay: 503.684.2772 0 www.tigard-or.gov n ®, City of Tigard April 21, 2010 Mr. Dan V.Jackson Managing Director Economist.com 550 Democracy Drive, Suite 130 Plano, TX 75024 Dear Mr.Jackson, Thank you for submitting a proposal regarding the City of Tigard Water Rate Study and SDC Update. The City received five proposals in response to our solicitation, all of which were submitted by well-qualified firms capable of providing the services as described in our request for proposal. The selection committee used a multiple review process to choose which firm would best meet the needs of the City to complete this project. The selection committee has forwarded a recommendation to the City Council to consider Red Oak Consulting, 12670 NW Barnes Road, Suite 104, Portland, Oregon to perform the financial consulting services for the Water Rate Study and SDC Update Project. Although your firm was not forwarded as a recommendation,we do hope you will respond to future City requests for proposal regarding financial services. If you have any questions regarding our selection process, please contact me. Again, thank you for your interest in our project, and for your time and effort in providing us the opportunity to review your firm's qualifications and experience. Sincerely, ohn Goodrich Project Manager 503.718.2609 13125 SW Hall Blvd. . Tigard, Oregon 97223 ® 503.639.4171 TTY Relay: 503.684.2772 a www.tigard-or.gov 00 City of Tigard April 21, 2010 Mr. Art Griffith Project Manager R.W. Beck 1001 Fourth Avenue, Suite 2500 Seattle, WA 98154-1004 Re: City of Tigard Water Rate Study and SDC Update Request for Proposals Dear Mr. Griffith, Thank you for submitting a proposal regarding the City of Tigard Water Rate Study and SDC Update. The City received five proposals in response to our solicitation, all of which were submitted by well-qualified firms capable of providing the services as described in our request for proposal. The selection committee used a multiple review process to choose which firm would best meet the needs of the City to complete this project. The selection committee has forwarded a recommendation to the City Council to consider Red Oak Consulting, 12670 NW Barnes Road, Suite 104, Portland, Oregon to perform the financial consulting services for the Water Rate Study and SDC Update Project. Although your firm was not forwarded as a recommendation, we do hope you will respond to future City requests for proposal regarding financial services. If you have any questions regarding our selection process, please contact me. Again, thank you for your interest in our project, and for your time and effort in providing us the opportunity to review your firm's qualifications and experience. Sincerely, IlAohqn Gd2h Project Manager 503.718.2609 johng@tigard-or.gov 13125 SW Hall Blvd. ® Tigard, Oregon 97223 ® 503.639.4171 TTY Relay: 503.684.2772 www.tigard-or.gov 4 e 0 ' D City of Tigard April 21, 2010 Mr. Steve Donovan Donovan Enterprises 9600 SW Oak Street, Suite 335 Tigard, OR 97223 Re: City of Tigard Water Rate Study and SDC Update Request for Proposals Dear Mr. Donovan, Thank you for submitting a proposal regarding the City of Tigard Water Rate Study and SDC Update. The City received five proposals in response to our solicitation, all of which were submitted by well-qualified firms capable of providing the services as described in our request for proposal. The selection committee used a multiple review process to choose which firm would best meet the needs of the City to complete this project. The selection committee has forwarded a recommendation to the City Council to consider Red Oak Consulting, 12670 NW Barnes Road, Suite 104, Portland, Oregon to perform the financial consulting services for the Water Rate Study and SDC Update Project. Although your firm was not forwarded as a recommendation, we do hope you will respond to future City requests for proposal regarding financial services. If you have any questions regarding our selection process, please contact me. Again, thank you for your interest in our project, and for your time and effort in providing us the opportunity to review your firm's qualifications and experience. Sincerely, John Goodrich Project Manager 503.718.2609 johng@tigard-or.gov 13125 SW Hall Blvd. • Tigard, Oregon 97223 503.639.4171 TTY Relay: 503.684.2772 0 www.tigard-or.gov City of Tigard April 21, 2010 Mrs. Angie Sanchez-Virnoche Principal FCS Group 7525 166th Avenue NE, Suite D-215 Redmond, WA 98052 Re: City of Tigard Water Rate Study and SDC Update Request for Proposals Dear Mrs. Sanchez-Virnoche, Thank you for submitting a proposal regarding the City of Tigard Water Rate Study and SDC Update. The City received five proposals in response to our solicitation, all of which were submitted by well-qualified firms capable of providing the services as described in our request for proposal. The selection committee used a multiple review process to choose which firm would best meet the needs of the City to complete this project. The selection committee has forwarded a recommendation to the City Council to consider Red Oak Consulting, 12670 NW Barnes Road, Suite 104, Portland, Oregon to perform the financial consulting services for the Water Rate Study and SDC Update Project. Although your firm was not forwarded as a recommendation, we do hope you will respond to future City requests for proposal regarding financial services. If you have any questions regarding our selection process, please contact me. I greatly appreciate the time and effort that you and John Ghilarducci gave to the City on short notice, especially the final interview with Dennis Koellermeier and Toby LaFrance. Again, thank you for your interest in our project, and for providing us the opportunity to review your firm's qualifications and experience. Sincerely, ftohn Goodrich Utility Division Manager 503.718.2609 johng@tigard-or.gov 13125 SW Hall Blvd. o Tigard, Oregon 97223 ® 503.639.4171 TTY Relay: 503.684.2772 0 www.tigard-or.gov Form W.9 Request for Taxpayer Give form to the Dapag January2W!5) "a identiflcation Number and Certification requester.a°not aemal Rev er the Service Send to the IFAS. Uitarna!Revenue Servke of I Name(as shown on your income tax return) o, MALCOLM PIRNIE, INC. to Q Business name,If different from above c O O C 0 indWuaY Check appropriate box:El We pproprietor ' ®Corporation 13Partnership ❑Other► ❑withholding backup p° Address(number,street,and apt.or suite no.) Requester's name and address(optlonal) a o 104 CORPORATE PARK DRIVE City,state.and XIP code CL WHITE PLAINS, Ny 10602 W List ac aunt number(s)here(optionaq N Taxpayer Identification (dumber iN Enter your T!N in the appropriate box.The TIN provided must match the name given on tine 1 to avoid Social security nrnrrber backup withholding.For individuals,this is your social security number(SSN).However,for a resident ellen,sole proprietor,or disregarded entity,see the Part I Instructions on page 3.For other entities,it is your employer identification number(SIN).If you do not have a number,see Now to get a 77M on page 3. of Note.if the account is In more than one name,see the chart on page 4 for guidelines on whose numberri, ployer ide Wwatton number to enter. 3 2 1 6 1 51 3 1 710 13 -- EM Cerfi lcation Under penalties of perjury,I certify that: 1. The number shown on this form is my correct taxpayer identification number(or t am waiting for a number to be issued to me),and 2. lam not subject to backup withholding because:(a)I am exempt from backup withholding,or ib)I have not been notrtied by the internal Revenue Service(iRS)that I am subject to backup withholding as a result of a failure to report all Interest or dividends,or(c)the IRS has notified me that I am no longer subject to backup withholding,and 3. 1 am a U.S.person(Including a U.S.resident alien). Certification instructions.You must cross out item 2 above If you have been notified by the IRS that you are currently subject to backup withholding because you have Palled to report all interest and dividends on your tax return,For real estate transactions,item 2 does not apply. For mortgage interest paid,acquisition or abandonment of secured property,cancellation of debt,contributions to an individual retirement arrangement(IRA),and generally,payments other than interest and dividends,you are not required t6 sign the Certification,but you must provide your correct TIN.(See the instructions on page 4.) Sign t3ignaturo at Here I U.S porson> �1 ,(` Mata ► ��-�Q 1 l> Purpose of Form A person who is required to file an Information return with the i Any estate(other than a foreign estate)or trust.See iRS, must obtain your correct taxpayer identification number Regulations sections 301.7701-6(a)and 7(a)for additional (TIN)to report,for example,income paid to you,real estate information. transactions,mortgage interest you paid,acquisition or Foreign person.if you are a foreign person,do not use abandonment of secured property,cancellation of debt,or Form W-9.Instead,use the appropriate Form W-8(see contributions you made to an iPA. Publication 515,Withholding of Tax on Nonresident Allens U.S. person.Use Form W-9 only if you are a U.S.person and Foreign Entities). (including a resident alien),to provide your correct'PIN to the Nonresident alien who becomes a resident alien. person requesting it(the requester)and,when applicable,to: Generally,only a nonresident alien Individual may use the 1.Certify that the TIN you are giving is correct(or you are terms of a tax treaty to reduce or eliminate U.S.tax on waiting for a number to be rssued), certain types of income. However,most tax treaties contain a 2.Certify that you are not subject to backup withholding, provision known as a"saving clause."Exceptions specked or in the saving clause may permit an exemption from tax to 3.Claim exemption from backup withholding If you area continue for certain types of income even after the recipient U.S.exempt payee. has otherwise become a U.S.resident alien for tax purposes. Note.if a requester gives you a form other than Fort W-9 to if you are a U.S.resident alien who is relying on an request your T7N,you must use the requester's form if it is exception contained in the saving clause of a tax treaty to substantially sine"ar to this Form W-9. claim an exemption from U.S.tax on certain types of income, you must attach a statement to Form W-9 that specifies the For fedo al tax purposes you are considered a person if you following five Items: are: 1.The treaty country.Generally,this must be the same •An individual who Is a citizen or resident of the United treaty under which you claimed exemption from tax as a States, nonresident alien. a A partnership, corporation,company,or association 2.The treaty article addressing the income. created or organizes;in the United States or under the laws 3.The article number or location in the tax trey that of the United Stales,or contains the saving clause and its exceptions.treaty Cat.No.10231X Form W-$(ROY.1-20M q City 0 f Tigard Application please fill out compl te Business s License Apply. • � Calendar Year: 2010 © New O Renewal (check one) BUSINESS 1�NFOR.1\1AT10N: MAILING ADDRESS: Red Oak Consttlrin a division of Malcolm Pirnie Inc. 12670 NW Barnes Rd. Doing Busin:: .,as P:.:ne Registered Business Name 12670 NW :carnes RSI. 12670 NW Barnes Rd. Address(if home add.css,please see Home Occupation Permit Address information bc!o",) Portland, OR 97229 Portland, Olt 97229 City State Zip City State Zip 503-352J:900 503-644-2414 _.. ._—._. Owncr/Emergency Contact Names&Telephone: Telephon: Fax 1. Paul Matthews, 503-352-0901 cmaki()pi. Email AddrCicisLiccnse Correspondence 2 Joe Healy, 503-352-0900 Business C,:.! from brick of form: 8910 OTHER 11 t`• !`:I � 1 UO ICN1ATION NEEDED: Tax Excn P+ .'%­p:oval th Contractor#: (Attach cor:,r:: ' :':,"':.cher of Determination"from the IRS) (Attach a copy of the Oregon State Contractor's License) Business St.,r: r :..... ....................................................................................................... ............... Number o iI.:: ;l!)­-rpiv:iicnt employees,*including the owner,within Tigard:................... 0 Business L.ic n> Cc. lu:: :his calendar year(see fee schedule or pro-rated schedule):................ $79.50 *NOTE: 'I', •.J ;,siucss License fee is based on the number of people employed by the company and who are working in Tigard. For the p i:: i)u t i! ti the business license fee,the term"employee"includes the owner as well as his/her spouse if also engaged is i:. ...,... To compute the number of full-time equivalent employees,estimate the total number of hours worked by all employed (}n r year) and divide by 2,080. HOME C2 "'UPA'! l e :.N i'ERMIT: If your business is operated from your home in Tigard,and you use the home as an office or place of business, o. nntst o' 7..,:1 :: iiome Occupation Permit through our Permit Center. Please call 503-639-4171 for additional information. TEMPO R.1'.Y U5 !:-.)!(.)Ur business in Tigard is of a temporary nature,(performing at the Tigard Library,for example),you must obtain a temporar f'• ,iness Complete this form and return it to the City of Tigard. PLEASE 1117TURN A h 'L.ICATION AND REMIT PAYMENT TO: FOR OFFICE USE ONLY' City of Ti,:a r:! Attn:Busi s LicC!•,: License# 13125 SVI I-it Blvd Tigard,0!1. 223 Date: $Amount: If you ha iestior it your business license, HOP#: call 503-63")-1171 of :tn email to buslic egard.or.g_Qv _ HOP Type: _ �_ -_ `Z• j..1 Effective Date: b ature sirs Date The info: tionpi, idcd on this application is public record. Submitting this application does not assume zoning compliance for your busi:• stype. sc contact the Planning Department at 503-639-4171 for business zoning questions. VOFYFiri- 8t, '.Appk, •"71 W) F CERTIFICATE OF LIABILITY INSURANCE DATE05/11/20 0 ) PRODUCER Aon Risk Services South, Inc. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY Franklin TN Office AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER,THIS 501 Corporate Centre Drive CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE suite 300 COVERAGE AFFORDED BY THE POLICIES BELOW. Franklin TN 37067 USA PHONE-(866) 283-7122 r--(847) 953-5390 INSURERS AFFORDING COVERAGE MAIC# INSURED INSURER A: Greenwich Insurance Company 22322 •• Malcolm Pirnie, Inc. 104 Corporate Park Drive INsuRER6: XL Specialty insurance Co 378$5 sr white Plains NY 10602 USA INSURER C: u INSURER D: i al a INSURER E: p COVERAGES THE POLICIES OF INSURANCE LISPED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY'THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LIMITS SHOWN ARE AS REQUESTED INSR ADD' LTR LNSRC I YPE OF INSUR,',NCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS DATE(SINVDD DATE(NIAI/DDIN'"Y) A CENERALLIABILITY GEC001076168 01/01/2010 01/01/2011 EACH OCCURRENCE $1,000,000 X COMMERCIAL G;-NERAL LIABILITY General Liability DAMAGE TO RENTED S1,000,000 CLAIMS MADE OCCUR PREMISES(Ea occurrence) MED EXP(Any one person) rn PERSONAL BADV INJURY $1,000,000 O GENERAL AGGREGATE $2,000,000 GLt"L AGGREGA'I E LI\l]T APPLIES PER: cc PRODUCTS-COMPIOPAGG $1,000,000 rn P:7LICY ® PRO- M LOC O ECr O n I11 B AVTOA;OBILE LIAItI1.11Y AE0001075808 01/01/2010 01/01/2011 COMBINED SINGLE LIMIT C )( ANY AUTO Auto (ADS) (Eaacciden9 $1,000,000 Z at ,v.I.OWNED A111 CS BODILY INJURY v SCI IEUULEU At:I US (Per person) tom. )( }i1RF.D AUTOS BODILY INJURY (� J( ::ON OWNU)A`a;US (Per accident) PROPERTY DAMAGE (Pcr accident) GARAC E LIABILITY AUTO ONLY-EA ACCIDENT ANY AUTO OTHER THAN EA ACC AUTO ONLY AGG 'EXCESS/UMBRELLA LIA It ILIIY EACH OCCURRENCE ❑OCCUR 7 i-:.AINISMADE AGGREGATE HDEDUCTIBLE KFTGNTION B RWD X WC STATU• OTH- \VORKERSCONIPENSAl'IOV.IND �,JY workers Compensation TORY LIMITS ER EMPLOYERS'LIABILITI' E.LEACHACCIDENT $1,000,000 ANY PROPKI EI U R/PAR r�'E:t i EXECUTIVE OFFICER/MENOW'A LXCLts)I;11? E.L DISEASE-EA EMPLOYEE $1,000,000 (Manduory in:d H/ E.L.DISEASE-POLICY LIMIT $1,000,000 If yes,dcscnbc:j:.d.rSPECIAL I':+V ,~IONS Wow OTHER DESCRIPTION OF OPERATIONSILOCAI'IONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS Project: Financial Consulting Services - water Rate Study and water SDC Charge Update. City of Tigard, its = officers, directors and employees are included as additional insured with respect to the General Liability and Auto Liability policies where required by written contract. Contractual Liability and severability of Interests ti CERTIFICATE t 10 L D h 1, CANCELLATION `-= City of Tigard SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION Attn: Joseph Parrett- Sr. Mgmt. Analyst DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 13125 Sw Hall E l v d. 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. Tigard OR 9722" USA BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER.ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25(2000''01) 01988-2009 ACORD CORPORATION.All rights reserved= The ACORD name and logo are registered marks of ACORD 1 4. G-140331-A CNA (Ed.01/01) IMPORTANT: THIS ENDORSEMENT CONTAINS DUTIES THAT APPLY TO THE ADDITIONAL INSURED IN THE EVENT OF OCCURRENCE, OFFENSE, CLAIM OR SUIT. SEE PARAGRAPH C.1.OF THIS ENDORSEMENT FOR THESE DUTIES. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTOR'S SCHEDULED AND BLANKET ADDITIONAL INSURED ENDORSEMENT WITH PRODUCTS-COMPLETED OPERATIONS COVERAGE 5 This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Any person or organization whom you are required to add as an additional insured under written contract or agreement. (Coverage under this endorsement Is not affected by an entry or lack of entry in the Schedule above.) A. WHO IS AN INSURED (Section II) is amended to of the "products-completed operations hazard" include as an.insured any person or organization, unless required by the written contract or including any person or organization shown in the written agreement. schedule above, (called additional insured) whom 4. The insurance provided to the additional you are required to add as an additional insured on insured does not apply to "bodily injury," this policy under a written contract or written "property-damage,"or"personal and advertising agreement; but the written contract or written injury" arising out of an architect's, engineer's, agreement must be:. or surveyor's rendering of or failure to render 1. Currently in effect or becoming effective during any professional services including: the term of this policy;and a. The preparing, approving, or failing to 2. Executed prior to the "bodily injury," "property prepare or approve maps, shop drawings, damage,"or"personal and advertising injury". opinions, reports, surveys, field orders, change orders or drawings and B. The insurance provided to the additional insured is specifications;and limited as follows: b. Supervisory, or inspection activities 1. That person or organization is an additional performed as insured sole) for liability due to our negligence part of any related Y ty Yarchitectural or engineering activities. specifically resulting from "your work" for the additional insured which is the subject of the C. As respects the coverage provided under this written contract or written agreement. No endorsement, SECTION IV — COMMERCIAL coverage applies to liability resulting from the GENERAL LIABILITY CONDITIONS are amended sole negligence of the additional insured. as follows: 2. The Limits of Insurance applicable to the 1. The following is added to the Duties In The additional insured are those specified in the Event of Occurrence, Offense, Claim or Suit written contract or written agreement or in the Condition: Declarations of this policy, whichever is less. e. An additional insured under this These Limits of Insurance are inclusive of, and endorsement will as soon as practicable: not in addition to,the Limits of Insurance shown in the Declarations. (1) Give written notice of an occurrence or an offense to us which may result in a 3. The coverage provided to the additional insured claim or"suit"under this insurance; by this endorsement and paragraph f. of the definition of "insured contract" under (2) Tender the defense and indemnity of DEFINITIONS (Section V) do not apply to any claim or "suit" to any other insurer "bodily injury" or "property damage" arising out G-140331-A Page 1 of 2 (Ed.01/01) . G-140331-A (Ed.01/01) which also has insurance for a loss we 4. Other Insurance cover under this Coverage Part;and b. Excess Insurance (3) Agree to make available any other This insurance is excess over any other insurance which the additional insured insurance naming the additional has for a loss we cover under this Coverage Part. insured as an insured whether primary, excess, contingent or on any other f. We have no duty to defend or indemnify an basis unless a written contract or additional insured under this endorsement written agreement specifically requires until we receive written notice of a claim or that this insurance be either primary or "suit'from the additional insured. primary and noncontributing. 2. Paragraph 4.b. of the Other Insurance Condition is deleted and replaced with the following: G-140331 A Page 2 of 2 (Ed.01/01) a City of Tigard ti Financial Consulting Servl'ces, Water Rate Study and Water System-Development Charge Update. � 4: 1 Per Addendum No.1,we present a detailed work breakdown structure in lieu of Section 9, Fee Schedule. Following that, we also present a modified Section 9,Fee Schedule. 5. COST/RATE ESTIMATES �- M948501 wH� Pat wa s a-Lastin .Sout7ons. City ofMgetd,Oregon' Water Rata Study and Water System 0mlapmenl Charge Updato Proposed Work Plan April 2010 Allecalml' HouseTotal Eq- 'TNN Rate ,SOC Tach I Totw' tabor' Naa- Cosb by Task Sad U e MnUhews Hardy Sva Teodoro Support Hou. Costs Tmval Travel TNN ."Task Task 1;Dalin Request and P--Stow Meeting a.Preps.PmOmisery Data Requests 78% 22% 2.0 20 3290 50 56 $6 5298 b.P!ePara far Projed P-Getvidas Marlow 78% 22% 1.0 4.0 4.0 0.0 1,1&5 0 24 24 1,2dB q'Conduct NOW Pre-SonAm Mewling 78% 22% 4.0 4.0 &0 1A60 9 31 40 1.8DO 'd.R-loai'INard ONe 78% 22% 4A 4.0 &0 1,100 0 22 22 1,122 a.Piepme Revtim Data ROqusN 78% 2Z% 1.0 1.0 145 0 3 3 148 Subaal X78% 22% &0 15.0 4.0 0.0 4.0 28.0 $4,280 59 ;Be $94 34974 ash 2 Fl-KdW Plan a.WOolha Model 100% 0% 1.0 8.0 9.0 $1,465 $0 $26 $26 $1,433 b.1"nale Begmeng Fund Cash Balances 100% 0% 20 z0 290 0 6 e 290 C.Review ClP 100% 0% 2.0 20 290 0 6 a 298 d.Rall..O&$9 100% 0% z0 20 290 0 6 8 290 e:Ravlevn larlp-Term Debt 100% 0% 20 2.0280 0 6 6 296' L Prepem IldUoi Canbrallon 100% 0% 8.0 8.0 1,160 0 23 23 1,183 9.CondW Meeting with Stag on lniow Calibration 100% 0% 3.0 3.0 1.D 7.0 1,280 925 34 1,294 h.Reines Finance Plan 100% 0% 8.0 8.0 1,160 0 23 23 1063 I.l3A19C 100% 0% 110 1.0 245 0 5 5 250 Sublutal 100% 0% 510 35.0 0.0 0.0 1.0 414 SSASO $9 $126 $137. $6,527, ask 3:Cesl•rli-Bervice Analysis a.Worst.Model 160% 0% 8.0 e.0 $1,160 $0 $23 $23 $1,183 b.Fu ctkirw6ie 0&M 100% 0% 4 0 4.0 580 0 12 12 592 c.AUomie O&M to Cuanomer Service ChereclMeUce100% 0% 4.0 44 680 0 12 12 592 d,Fwtch.ru Ui.Find Assets 160% 0% zo 4.0 6.0 1,070 0 21 21 _1,091 e.Alacuts Fled Assets to Customer Service Charadodsdra 100% 0% 4.0 44 580 0 12 12 592 1.Dotoimina Custerrior Grail a CherecledlOca by Gass 100% 0% 20 20 290 0 8 6 290 g.Albwa CostaaCualomer Gasaee 100% 0% 2.0 4.0 8.0 1,070 0 21 21, 1.081 h.Develop Lino Costs by Cie.and CSC 100% 0% 4.0 4.0 680 0 12 12 692 1 oavelop Cast ofBormce by Claes 100% 0% CO 4,0 588 0 12 12 592 1.OA7OC t00% 0% 4.0 �4.0 888 0 2D 20 1,000 ouhaue 100% 0% 8.0 38.0 0.0 0.0 0.0 460 $7.470 $0 $149 S149 $7,619 Task 4:Rate DMISWCO 000 InpeN Analyses a Inmellia Model 100% 0% 1.0 BA 9,0 $1,165 s0 524 $24 $1,208 b.100gmle Cudemsr Cla- 100% 0% 0:6 8.0 85 1,113 0 22 22 1,135 a F_dred/Ogandse Data 100% 0% 1A 1.0 244 26.0 3,510 0 TO 70 3,560 d.Develop G.ae-Up Factors 100% 0% 1.0 4.0 6.0 685 0 is 131178 0.QAIQC Review .100% U% 2.0 2.0 2.0 6.0 1,040 0 21 21 1,061 L Prepare INlul Col"116n 100% 0% 1.0 44 6.0 665 0 13 13 678 6 Propane for Mo,Ur19Mth$1a0on lnhid CnUbmlbn IDO% 0% O'S 2.0 110 35 543 0 11 11 553 h.Cendudl Meeting Win SleBon Inglal Cellbmlhn 100% 0% 2.0 20 4A 760 9 18 60 24 4 I.Revtle Meda 100% 0% 1.0 6A 7.0 925 0 t9 19 944 pare I.Pretar Rob Design Workshop2.0 100% 0% 2.0 4.0 BA .1,260 0 25 25 1,275 k.Conduct Rea Coulon Workshop 160% 0% 49 4.0 84 11560 a 31 31 1591 1.Preps.Daft TM Summeddog Findings 100% 0% 2.0 4.0 8.0 4.0 18.0 2,470 0 49 49 2,519 m,Conduct Tel-forenea Mth Tigard PM .1 W% 0% 20 20 4.0 780 0 16 18 798 n:Prepare Flnei TM 100% 0% 1.0 4.0 SO 025 0 17 17 042 o. 0A/QC 160% U% 20 2 0 0 4. 76D 0 16 18 798 Subtotal 100% D% 1 D 31.6 652 0.0 6.0 1214 S18,090 S9 $362 $371 $16,461 Task 5:System Dsvelonment Crmve Updale a.wooln's Model ,0% 100% 4.0 4.0. $580 SO $12 $12 5592 b:Prelims for Engineering Workshop with Carrillo O% 100% 24 4.0 z0 BA 1,250 0 25 25 1,275 c.Cadues Fuglnsedrg Workshop 0% 100% 8.0 B. 1&0 3,120 D 62 62 3,182 d,Flnsnm Engblseri g Acmmptlms, a% 100% 20 &0 10.0 1,650 033 33 1,883 e.Culadste Water SDCs 0% 100% 2A 1&0 .1tl.0 2,810 0 50 56 2868 f.Prepare Dreg Magtodalagy 0% 100% 1.0 &a OA 1,405 028 28 IA33 g.Cobud,Tal-rhem-M h Tig�d PM 0% 100% 2.0 70 4.0 780 0 16 18' 795 K P.pam FinalMaUmdology D% 100% 1.0 20 3.0 536 0 11 11 546 1.DAtQC 0% 100% 1.0 1.0 2D 398 D 8 6 398 Subtotal 0% 100% i9,C 53.0 0.0 0.0 20 74.0 $12520 - 60 $250 $250 $12,770 Talk 5:Moelings nM PreaenlNlom a.Prep and Conduct Jae 15-Council Workshop Inlroducllen 18% 22% 15 25 1.0 5.0 $820 $9 $16 $25 $645 b.Prep and Conduct July 14.IWS MaoUrg 78% 22% 25 4.0 20 0.5 1,373 9 27 38 1,409 ,Prep and Conduct July 20•Cmncg WaN6hop 78% M. 2.5 4.0 2,0 8.5 1,373 9 27 38 1,409 d Prep and Conduct Supt 8-IWB MeeUng 78% Z2% 2.0 4A 20 5.0 1,250 9 25 34 1,264 e.Prep and Condud Said 21-Colm4 Workshop 78% 22% 2.5 4.0 20 8.5 1:373 9 27 38 11409 Subtotal 78% '22% 11.0 1815 0.0 0.0 9.0 WA $8,186 $53 $124 $177 $87•164 Teti,7:Non•Raaming Clung. a.Review 71gand's Nun-Raaradng Charges 100% 0% 1.0 4.0 6.0 5825 s6 $17 117 $842 b,CarduclTNeranferenra MOn llllirydnd Fl.-Stag 180% 0% 2.0 2.0 4.0 780 0 16 16 708 aPrepare Oral and tidal TM Summwbr a Reclines 100% 0% 20 8.0 20 120 1,830 0 37 37 1,887 d.DAIQC 100% 0% 1.0 1.0 20 300' 0 8 6 308 Sublolal 100% 0% 6.0 15.0 &0 DA 20 23,0 $3,S25 50 $77 $77 S3,902 Task 6:Rate Setd0v6yArceyals(Agotdab0lty I dak) a.Conduct m A&mdabllity Tolanlmance WW.Tigard 100% 0% 20 2.0 2.0 6.0 $1,080' so $52 $62 $1,132 b.Redew TWSADs.uwaphlc Daa 100% 0% 2.0 4.0 &0 890 0 78 78 968 s,Integrate A6ardebUrn,Index In Rea trustee Madel 100% 0% 05 2.0 26 333 0 7 7 339 d.Prepare TM SummerMng Flog. 100% 0% 04 1.0 4.0 1.0 8.5 898 0 34 34 971 e.OMOC 100% 0% 1.0 14 1.0 3,0 540 0 28 26 See Subtotal 100% 0% 3.8 6.5 0.0 gall 0.0 244 $3,760 $0 $198 $198 $3,978 Task R ExponslonArudyds aDevelop Revenue EVUmalea 100% 0% 1.0 4.0 5.0 $823 s0 $17 $17 $842 b.alegma Cost Emanates 100% 0% 1.0 4.0 5.0 am 0 17 '17 842 a Analy-DSC and Rey Financial lndlr_aa. 100% 0% 4A 4.0 sea 0 12 12 692 d,Cekstlnte C=UBemfi1 Ratio 1OD% 0% 1.0 4.0 20 7.0 1,005 0 2A 20 1,02a e.Prapana Draft and Final TM Surmarllirg Flrdfrgs 100% 0% 3.0 8.0 2.0 130 2075 0 42 42 2,117 L QAIQC 100% 0% 1.0 1.0 245 0 5 5 250 Subloal 180% 0% 7.0 24.0 0,0 0.0 '4,0 350 $5,555 ,$0 $111 $111 $6,666 oak 10:Reports and Preset atkars e•Prepare Dreg Rnnl Report, 7B% 2Z% 4.0 40.0 8.D 8.0 60.0 same $0 $171 $171 $8,711 b.Peaps.Oreo Uesrmanual 78% 22% 2.0 18.D 2.0 20.0 2,990 a W 60 3,050 c.CordudTfl-rdtenc*W1h Tlgam PM 78% 22% 20 4A 8.0 1,070 0 21 21 11091 d,Pape.Kriel Rapist 78% 22% 20 6.0 &0 18.0 2,770 0 47 47 IA17 e.Pmpe.Final User Manuel 76% 22% 2A 2.0 4.0 470 0 9 9 479 Subloaf 76% 22% 10.0 70.0 8.0 OA 20.0 108.0 ,$15,440 $9 5309 $Me '516,749 oak 11:Project Manag-at a.Prepera Project Mamge sonl Plan 78% 22% 2-0 64 1.0 9.0 $1,450 s0 529 $29 $1,479 b.Conduct Telemnferenc,Mih T198d PM 78% 22% 2.0 Co 81) 1,360 0 27 27 1,387 c mike ring zed C.,w 76% 22% 10 120 4.0 174 2,345 0 47 47 2,392 d.prepareRipon.Progress Rip78% 22% 1.0 6.0 6.0 ISO 11836 0 37 37- 1,872 Sab,WW 78% 22% 6.0 30.0 0.0 0.0 13.0 49.0 s6,99D $0 $140 $"a $7,130 owl 78% 22% 99.0 3311.6 834 8.0 61.0 $07.5 $70.628 S70 $1,931 $2,010 .492,537 Total Water Rate Study Cosa $78,877 ;68 51,538 $Y,BD3 572,981 Total Water System Daysaymenf Charge Update Coals 19,410_ 13 383 5008 20,457 Rea $245.00 5145.00 $130.00 $150.CD 80.00 Section 9 FEES SCHEDULE Request for Proposal Financial Con-sultine Services Water Rate Study and Water System Development Charge Update A. Proposed-Fees-Water Rqte,StudV Paul Matthews project hours 73-06 x $ 245.00 pet hour = $ 17,000.75 project hours 254.57 k $ 145.00 per hour $ 36,911.94 Joe�_He.aly proi ' 1. Sean Swe project hours 80.40 x $ 130..00 per hour 10;451.8& Mannyleodoro project hours 8.00 x $, 150.00 per hour = $ 1.5200.00 Administrative project hours, 49.0 x $ .9.0..00 per hour $ 4,412.1.6.9 Expenses Travel $ 65685 Non-Travel $ 1,537.55 Additional Public Hearings/Meetings; it required Jot Healy 145.00 per hour Travel Expenses 8,80 per meeting Total Water Rate Study 72,486.67 B. Proposed Fees-Water Svstem DeYeI6OmentChat.Pe Update Paul Matthews project hours 25:94 x $ 245.00 per hour = $ 6,354.25 Joe Healy project hours �8 1.93 x $ 145.00 per hour = $ 11,880..56 r0i Sean Swe project hours 2.60 x $ 130.00 per hour = $ 338,12 Manny Teodoro project hours 0.00 x $ 150.00 per hour = $ 0.00 AdminiWative project hours I1:97 x $ 90.00 per hour = $ 1,077;131 Expenses. Travel 13,35 Non-Travel $ 393.00 Additional Public Hearings/Meetings, if required Joe Healy $ 14_5;00 per hour Travel Expenses $ . 8'.80 per meeting, Total Water Sygt6rfi Development Charge Update $ 201056:58 Total Financial SerVices Cost(Vater Study + Water SDC) $ 92,537.25 Kathy Mollusky From: Joseph Barrett Sent: Tuesday, May 25, 2010 8:19 AM To: John Goodrich Cc: Loreen Mills; Kathy Mollusky Subject: FW: Red Oak Consulting Contract Changes Attachments: Red Oak Consulting Contract Changes 5-24-10.doc Hi John, attached are comments regarding Red Oaks proposed changes to the contract. It is perhaps worth reminding Red Oak that during the RFP one of the City's Special Instructions to the proposers stated the following: D. PROTEST OF SCOPE OF WORK OR TERMS A Proposer who believes any details in the scope of work or terms detailed in the proposal packet and sample contract are unnecessarily restrictive or limit competition may submit a protest in writing, to the Purchasing Office. A protest may be submitted via facsimile. Any such protest shall include the reasons for the protest and shall detail any proposed changes to the scope of work or terms. The Purchasing Office shall respond to any protest and, if neces,-~----hall issue any appropriate revisions, substitutions, or clarification via addenda to all interested Prop 6ed 0,6 (Q05u1 f' - To be considered, protests must be received' � ig date. The City shall not consider any protest against award,' or contract terms submitted after the established protest de 3seph Barrett, Sr. Management Analyst, and be marked as foll RFP Specification/Term Protes City of Tigard Attn: Joseph Barrett, Sr. Managei 13125 SW Hall Blvd. Tigard, Oregon 97223 If a protest is received in accordance e may be extended if necessary to allow consideration of tl lenda to the proposal documents. K. FORM OF CONTRACT A copy of the City's standard Personal Services Contract, which the Ci1y expects the successful firm or individual to execute is included as "Attachment C". The contract will incorporate the terms and conditions from this RFP document and the successful proposer's response documents. Firms taking exception to any of the contract terms shall submit a protest or request for change in accordance with Section 2.D "Protest of Scope of'Work or Terms" or their exceptions will be deemed waived. Red Oak should have raised these issues during the RFP process. We are absolutely in our right to not change the contract and Red Oak should sign the agreement. We may be willing to work with them on sections 11 and 20(see attached)of the contract as a give but absolutely should not alter section 7 to meet their request. From: Loreen Mills Sent: Monday, May 24, 2010 4:50 PM To: Joseph Barrett Subject: Red Oak Consulting Contract Changes 1 Joe — I've attached a document -,t shows Red Oak's requested contras, ,hanges and my one exception to their request. The bigger question for me is — did Red Oak identify this as an issue during bids? If they didn't, we could be kind and let them have some of the changes requested but it doesn't seem like we have to let them change the contract at this late date! See ya tomorrow morning. Lore wv M LU% Asst. to the City Manager City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 503-718-2417 (direct line) DISCLAIMER: E-mails sent or received by City of Tigard employees are subject to public record laws. If requested, e-mail may be disclosed to another party unless exempt from disclosure under Oregon Public Records Law. E-mails are retained by the City of Tigard in compliance with the Oregon Administrative Rules "City General Records Retention Schedule." 2 I Joe—I've attached a document L_t shows Red Oak's requested contrac :hanges and my one exception to their request.. The bigger question for me is — did Red Oak identify this as an'issue diii=irig Bids. If they didn't,we coda be kind and let them have some of the changes requested but it doesn't seem like we have to let them change the contract at this late date! See ya tomorrow morning. Asst. to the City Manager City of Tigard 13125 SW Hall Blvd. Tigard,OR 97223 503-718-2417 (direct line) DISCLAIMER: E-mails sent or received by City of Tigard employees are subject,to.public record laws. If requested, e-mail may be disclosed to another party unless exempt from disclosure under Oregon Public Records Law. E-mails are retained by the City of Tigard in compliance with the Oregon Administrative Rules "City General Records Retention Schedule." 2 TIGARD PERSONAL SERVICES CONTRACT WATER RATE STUDY— CONTRACT MODIFICATION REQUESTS Following are excerpts from the contract showing Red Oak requested changes: (7) 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 agrees to indemnify and defend the City, its 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) that may be asserted by any person or entity whici Y arise froin is caused by the negligen��, errors, or omissions, during or in connection with the performance of the work described in this contract, except liability arising out of the �Ael `.[Lli negligence of the City and its employees. Such indemnification 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. (11) PROFESSIONAL SERVICES The City requires that services provided pursuant to this agreement shall be provided to the City by a Contractor that does not have a conflict of interest with City 5 interests to the best of Contractor's knowledge and belief. Further, Contractor shall not engage services of an attorney and/or other professional who individually, or through members or his/her same firm, represents clients on matters contrary to City interests. Should the Contractor represent clients on matters contrary to City interests or engage the services on an attorney and/or other professional who individually, or through members of his/her same firm, represents clients on matters contrary to City interests, Contractor shall consult with the appropriate City representative regarding the conflict. After such consultation, the Contractor shall have seven (7) days to eliminate the conflict to the satisfaction of the City. If such conflict is not eliminated within the specified time period, the agreement may be terminated pursuant to Section 13.13.3 of this agreement. (20) WARRANTIES All work shall be guaranteed by Contractor for a period of one year after the date of final acceptance of the work by the owner. Contractor warrants that all practices and procedures, workmanship and \� materials shall be the best available unless otherwise speeified in the profession in accordance with generally accepted professional practices and standards. Neither acceptance of the work nor payment Page 1 therefore shall relieve Contractor from liability under warranties contained in or implied by this Agreement. Page 2 therefore shall relieve Contractor from liability,under,warranties contained in or implied by this Agreement. Page 2