HomeMy WebLinkAbout02/16/1988, 5 - WASTEWATER MANAGEMENT PLAN IMPLEMENTATION AGREEMENT �NINI�9III�II�IIIIII�IIIII`II`Ir MEETING DATE:
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C�`"'..77 or san U5 oBispo FEBRUARY 16,
COUNCIL AGENDA REPORT ITEM NUMBER:
DAVID F. ROMERO, DIRECTOR PREPARED BY: WILLIAM T. HETLAND. �'
FROM: �-
PUBLIC WORKS DEPARTMENT UTILITIES MANAGER
SUBJECT:
Wastewater Management Plan Implementation Agreement
CAO RECOMMENDATION:
Council authorize the Mayor by resolution to execute the
Wastewater Management Plan Implementation agreement with the
firm of Brown and Caldwell Consulting Engineering and direct
staff to proceed with the preferred financing alternative.
BACKGROUND:
SUMMARY
On January 25, 1988, Council authorized staff to negotiate an
agreement with Brown and Caldwell Consultant Engineers for the
implementation of the Wastewater Management Plan. Staff is
recommending that the attached agreement in the amount of
$1, 184,035 be accepted. Funding options including short-term
loans, "pay-as-you-go" rate increases, and a combination of
these two were developed. Council should review these options
and direct staff according to their preference.
BACKGROUND
After an extensive proposal process, the Council authorized
negotiations with Brown and Caldwell Consulting Engineers for
implementation of the Wastewater Management Plan.
During negotiations, the scope of tasks and costs presented in
the initial proposal were refined and a final scope of work was
developed.
SCOPE OF WORK
The scope of the proposed agreement is divided up into specific
work tasks. These -tasks can be summarized into three key
areas. Those areas are: A. Planned Engineering Services,
B. Follow-on Engineering Services, and C. Special Engineering
Services.
A. Planned Engineering Services
The four tasks included in Planned Engineering services are:
Task 1. Project Management
The Project Management task covers the general coordination and
management of the project. It includes general administration
throughout the contract plus review meetings with City staff,
monthly progress reports and budget and schedule control. This
also includes meeting with the Regional Board to resolve waste
discharge requirement questions and grant funding concerns.
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Page Two
Task 2. Predesign
The Predesign Task includes brainstorming sessions with staff on
the treatment plant and collection system. Analysis of
beneficial use options, source detection work,
infiltration/inflow alternatives, and the treatment plant's
basis of design report are part of this task. Collection system
preliminary design and implementation program will also be part
of this task and will provide the basis for detail design of the
needed sewer system improvements. It is anticipated that local
engineering firms will then be retained to do the specific
detail plans and specifications for construction. At the
completion of this task, specific beneficial use option and
infiltration and inflow alternatives will be identified as part
of the City's Wastewater Management Plan.
Task 3. Design
The Design Task involves the nuts and bolts of putting the
recommended program into detail plans and specifications. It
also includes development of detailed construction cost
estimates and construction schedules. Value engineering and
cost planning and monitoring are two important parts of this
task. These are techniques to assure that the design is the
most cost effective and stays within budget.
Task 4. Bid Period Assistance
Bid Period Assistance task involves attendance at prebid
conference, preparation of contract addenda and assistance in
the evaluation of bids.
B. Follow-on Engineering Services
Follow-on Engineering services tasks relate to construction
administration and project startup and closeout.
Those tasks relating to construction administration includes
interpretation of contract documents, site visits, change order
preparation, and consultation during construction. Project
startup and closeout involves updating the operations and
maintenance manual, preparing startup procedures, operator
training, and as-built plans.
The cost of the follow-on engineering services will be
negotiated later after plans and specifications are complete and
a better understanding of the project needs are known.
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COUNCIL AGENDA REPORT
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Page Three
C. Special Engineering Services
Special engineering services cover miscellaneous items of work
that may be required but cannot be specifically defined at this
time.
These services may include preparation of as-built plans,
special design package for loan or grant funding, public
hearings with the Regional Board and design of emergency power
systems plus other miscellaneous items.
AGREEMENT FORMAT
The type of agreement proposed is a cost plus fixed fee with a
ceiling limit. This type of agreement is required by the
Environmental Protection Agency for any grant funded projects
and staff feels is in the City's best interest for this project.
The agreement is structured such that the consultant will be
paid his actual costs up to a ceiling limit. In addition, he
will also receive a fixed fee which covers his profit.
This form of agreement is the fairest for both the City and the
consultant. The City is protected by a ceiling which limits the
City's exposure. Since the consultant's fee is fixed and he has
a limit on his costs, it encourages him to work as efficiently
as possible. It eliminates the incentive to run up costs to
increase profits, if the agreement was simply a cost .plus
percentage type of contract. It is in the consultant's best
interest since he knows exactly what his fee is and it won't
vary.
COST
The cost breakdown for the agreement is as follows:
A. Planned Engineering Services
Cost Ceiling $932,535
Fixed Professional Fee 114,500
Subtotal $1,047,035
C. Special Engineering Services 137,000
Total $1, 184,035
Special Engineering Services will only be authorized if needed.
It is estimated that Follow-on Engineering services will be
around $319,500. The actual costs will be negotiated at the
completion of design. Cost of on-site construction, inspection
ic- not included and will be a separate a=eement.
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Page Four
FINANCIAL
Staff looked at four funding options. Two of the options
included short term loans and one of the options looked at
"pay-as-you-go" with an immediate sewer rate increase. The last
option is a combination of rate increases and loans.
A. Short Term Loans
The Wastewater-Management Plan identified short term loans as
the funding sources for this phase of the program. These short
term loans could then be repaid when long term debt financing
was authorized. Options available for short term financing are
loans from financial institutions or internal loans from City
accounts. Either case, interest would be paid on the loan
amount. The City currently has funds available in the sewer and
water funds to cover the costs associated with this program
phase.
Financing through internal loans would benefit the program by
saving financing costs. It is estimated that this would result
in a savings of $10,000 to $30, 000, based on a $1.0 million loan
for one year. The lending fund (water or sewer) would not lose
any money, since the payback interest rate would be based on the
City's current market rate of return.
A resolution authorizing the lending of these funds and
repayment with interest at current market rates is attached.
Repayment will be from long term debt financing proceeds.
B. "Pay-As-You-Go" Sewer Rate Increase
An alternative to the short term loans would be "pay-as-you-go"
financing through increased sewer fees. The Wastewater
Management Plan identified sewer rate increases for funding the
long term debt financing, beginning in July 1988. Subsequent
increases are proposed for July 1989 and July 1990. The
proposed increases, without grant funding, would be 85%, 75% and
20%.
Staff analyzed a "pay-as-you-go" revenue plan which proposes an
immediate rate increase of 140% or $6. 30/month for single family
homes. This would bring the single family rate to
$10.80/month. The rate would be effective for all bills issued
after May 1, 1988. The May 1, 1988 date was selected so as to
provide time for a public rate hearing and implementation by the
County data processing department.
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COUNCIL AGENDA REPORT
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Page Five
The 140% rate increase would generate about $1, 000, 000 between
May and December 1988. This would approximately cover the cost
of the contract. The second year rate increase could be
reduced, since the first year increase was greater than
proposed. Under this alternative, the sewer fund would have to
provide approximately $375, 000 during the next three months to
meet cash flow requirements. Once the revenue from the rate
increase begins, it will meet the cash flow needs plus
additional funds to pay back the $375, 000. By the end of the
year, everything will be balanced out.
The attached graph (Attachment #1 WWMP Implementation) shows the
proposed cumulative expenditures for the contract, peaking out
at a little over a million dollars in December 1988. This is
shown by the first revenue plan estimate curve meeting the
expenditure line at the end of December 1988.
C. Combination
The combination approach or second revenue plan shown on the
WMMP Implementation graph would raise sewer rates by 90%, again
being effective on all bills issued after May 1, 1988. The
single family rate would be increased by $4. 00/month to a total
monthly bill of $9.50/month. This increase would generate
approximately $670,000 between May and December 1988. Like the
previous rate increase alternatives, funds from the sewer or
water fund would be needed up front to cover cash flow
requirements.
This second revenue plan would not completely cover the cost of
this program phase. A shortfall of about $360,000 would
therefore have to be made up through short term loans as
explained previously. The attached graph shows the cumulative
revenues generated under this second revenue plan.
Though the proposed rate increases of 90% to 140% are
significant for San Luis Obispo, the actual monthly rates are
similar to other rates charged by surrounding communities. The
following is a brief list of some single family sewer
rates/month in San Luis Obispo County.
1. San Luis Obispo
a. Current $4.50
b. 90% Increase $9.50
c. 140% Increase $10.80
2. Paso Robles $7.76
3 . Templeton $10. 00
4. Atascadero $10.54
5. Morro Bay $12.30
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Page Six
CONCURRENCE
This report has been reviewed and received the concurrence of
the City Administrative Officer, City Attorney and Finance
Director. .
RECOMMENDATION
Staff recommends Council authorize by resolution the Mayor to
execute the Wastewater Management Plan Implementation agreement
with the firm of Brown and Caldwell Consulting Engineers. Staff
further recommends Council either authorize by resolution. an
internal loan from the sewer and water funds to finance this
contract, or direct staff to return with a proposed rate
ordinance amendment as outlined in the staff report.
Attachments: Attachment #1
Attachment #2
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---�77
RESOLUTION NO. (1988 Series)
A RESOLUTION Of THE COUNCIL. -OF THE CITY OF
SAN LUIS OBISPOIAPPROVING mr.ArREEmENT FOR'.::. .-
ENGINEERING SERVICE. BETWEEN
ORENGINEERING-SERVICE- BETWEEN THE ........
CITY OF SAN LUIS OBISPO AND BROWN AND CALDWELL-FOR .
IMPLEMENTATION OF WASTEWATER MANAGEMENT PLAN:
WHEREAS, the City has adopted a Wastewater. Management Plan
and
WHEREAS,, the Wastewater Management Plan identifies a .specific
program for the implementation of the Wastewater Management Plan;
and
WHEREAS, the City desires to retain technical assistance to
implement the Wastewater Management Plan program; and
WHEREAS, the City has gone through a consultant selection
process and the firm of Brown and Caldwell is determined to be
capable and interested in providing assistance.
NOW THEREFORE,, BE IT RESOLVED the Mayor is authorized to
execute the Agreement for Engineering Services between the City
of San Luis Obispo and Brown and Caldwell for Implementation of
Wastewater Management Plan.
On motion of seconded
by and on the following roll call vote:
AYES:
NOES:
ABSENT:
%the foregoing Resolution was passed and adopted this day of
1988.
MAYOR RON DUNIN
ATTEST:
-,,::: CITY- CLERK. PAMELA XOGES
AGREEMENT FOR ENGINEERING SERVICES
BETWEEN CITY OF SAN LUIS OBISPO
AND BROWN AND CALDWELL FOR
IMPLEMENTATION OF WASTEWATER MANAGEMENT PLAN
THIS AGREEMENT, made and entered into on this day
of , 1988 , by and between City of San Luis Obispo or
"City" , hereinafter referred to as "Owner, " and Brown and Caldwell ,
a California corporation, authorized to provide engineering
services , hereinafter referred to as "Engineer. "
WITNESSETH:
WHEREAS , City and Engineer have previously entered into an
Agreement on October 28 , 1986 , for engineering services for
preparation of Wastewater Management Plan for the City of San Luis
Obispo; and
WHEREAS, Engineer has completed the final report on the San
Luis Obispo Wastewater Management Plan; and
WHEREAS, City has requested Engineer to provide engineering
services for' the implementation of the Wastewater Management Plan,
hereinafter referred to as the "Project" ; and
WHEREAS, Engineer has available and offers to provide
personnel and facilities necessary to accomplish the work within
the required time; and
WHEREAS, Owner and Engineer have completed negotiation of
price based on certified cost data submitted by Engineer, and
NOW, THEREFORE, Owner and Engineer agree as follows :
I. PROJECT COORDINATION
A. City
The. City Utilities Manager shall be the representative of
the city for all purposes under this agreement and is
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designated as the Project Manager for the City. He shall
supervise the progress and execution of this agreement.
B. Engineer
Engineer shall assign a Project Director and a Project
Manager for this project. Mr. Pervaiz Anwar is hereby
designated as the Project Director and Mr. Azee Malik is
hereby designated as the Project Manager for engineer.
Should circumstances or conditions subsequent to the
execution of this agreement require a substitute Project
Director or Project Manager for any reason , the Project
Director or Project Manager designee shall be subject to
the prior written acceptance and approval of the City's
Project Manager.
II . DUTIES OF ENGINEER
A. Description of Project
The Project is described in Exhibit A . entitled ,
"Description of Project" . Any changes in the Project as
described will be incorporated by written Amendment
executed by the City' s. Project Manager and Engineer.
B. Scope of Engineering Services
Engineer agrees to . perform those services which are
described in detail hereafter. Unless modified in writing
by the parties hereto, duties of Engineer shall not be
construed to exceed those services specifically set forth
herein.
1. Planned Engineering Services Engineer agrees to
perform those planned tasks described in Exhibit B
entitled , "Scope of Planned Engineering Services , " .
Compensation for Planned Engineering Services shall be
as provided in Exhibit C.
2 . Follow-on Engineering Services Owner and Engineer
agree that certain of the work to be performed by
Engineer cannot be defined adequately prior to ' the
completion of the predesign or design services, and
that additional engineering work related to the
execution of the project and not covered in Exhibit B
will be needed during performance of this agreement.
It is intended that such categories of work be
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classified as Follow-on Engineering Services.
Follow-on Engineering Services will be negotiated
following pre-design or design services when the
actual facilities to be constructed are more
accurately defined. Follow-on Engineering Services
will include the following tasks.
a. Review of submittals . Review contractor' s
submittal to assure compliance with the contract
documents.
b. Consultation durin construction. Provide
interpretation of contract documents.
Respond to requests for information from the
contractor.
Review requests for substitution from the
contractor.
C. Site visits . Make visits to the construction site
to assist the construction manager in monitoring
of the construction program. It is assumed that
twelve trips to the site will be made during the
construction of the proposed project.
d . Change order preparation and review. Provide
assistance to the City in the preparation and
review of change orders . This will include
developing cost estimates for the changes as well
as evaluating contractor supplied costs for the
proposed changes.
e. Witness testing . Witness the testing of major
equipment. It is assumed that the testing of the
installed equipment would be witnessed at the
site.
f. Prepare operations and maintenance manual . Update
operation and maintenance (O&M) manual currently
in use by the City' s plant personnel . Incorporate
changes resulting from additions to or
modifications of existing treatment facilities.
g . Prepare start-up procedures. Prepare start-up
procedures for the modified treatment
facilities. Start-up procedures to include system
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flushing , inspections, testing and any other
additional manufacturer requirement necessary to
place the equipment and systems in full operation.
h. Start-up assistance. Provide start-up assistance
to the City. Conduct up to three pre-start-up
meetings with contractor, construction manager and
plant personnel . Coordinate and oversee the final
testing.
i . Provide operator training . Prepare training
procedures. Coordinate contractor and equipment
suppliers for contract-related training by the
equipment suppliers. Conduct start-up,
operations , shutdown, maintenance and on-site
field training.
3 . Special Engineering Services .
Owner and Engineer agree that certain of the work
contemplated to be performed by Engineer cannot be
defined sufficiently at the time of execution of this
Agreement, and that incidental engineering work
related to the Project and not covered in Planned or
Follow-on. Engineering Services may be needed during
performance of this Agreement. Such categories of
work shall be classified as Special Engineering
Services. Special Engineering Services shall be
authorized by the Project Manager for the City.
Special Engineering Services may include, b'ut are not
limited to, the following :
a. Prepare As-built Construction Plans . Prepare
as-built construction plans based on drawing
mark-ups developed by the contractor during the
construction phase. As-built information will be
transferred to original drawings (mylars ) and a
complete set will be submitted to the City.
b. Prepare a Separate Construction Package for
Advance Wastewater Treatment . If gran an funds
are to be pursued, a separate package will be
prepared for the construction of advance
wastewater treatment facilities. This package
will be formatted into a document which meets the
requirements of Clean Water Grant Program and
State Revolving Fund Loan Program.
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c. Incorporate Review Comments . The Advance
Wastewater Treatment construction package may be
submitted to the state and Corps of Engineers for
review. All review comments will be incorporated
to get state and Corps of Engineers concurrence .
d . Public Hearings. Attend public hearings meetings
in Sacramento, California and respond to any
comments from RWQCB to resolve waste discharge
requirements relating to color, turbidity and
temperature.
e. Emergency Power. Prepare plans and specification
for the construction of a new emergency power
system capable of keeping critical unit processes
on-line in case of power outage.
f . Value Engineering Recommendation. Incorporate
value engineering recommendations in the design
upon concurrence by the City.
C. Release of Reports and Information.
Any reports , information, data , or other material given
to, or prepared or assembled by, Engineer under this
agreement shall be the property of City and shall not be
made available to any individual or organization by
Engineer without the prior written approval of the City 's
Project Manager.
D. Copies of Reports and Information .
If City requests additional copies of reports, drawings ,
specifications, or any other material in addition to what
the Engineer is required to furnish in limited quantities
as part of the services under this agreement, Engineer
shall provide such additional copies as are requested , and
City shall compensate Engineer for the costs of
duplicating of such copes at Engineer's direct expense.
E. Qualifications of Engineer. Engineer represents that it
is qualified to furnish the services described under this
agreement.
Page 5 of 14
III . DUTIES OF CITY
City agrees to cooperate with Engineer and to provide
treatment plant operation, maintenance , and performance data
as requested plus available construction or as-built
drawings. City will provide potholing at the treatment plant
to expose underground utilities.
IV. COMPENSATION
For the - services described in Exhibit B which are to be
performed by the Engineer, the Owner agrees to pay, and the
Engineer agrees to accept, compensation in accordance with
the methods and schedules set forth in Exhibit C.
Compensation for Follow-on and Special Engineering Services
shall be as set forth in the written authorization for such
services . Payment to the Engineer is due upon receipt of
invoice by Owner. If payment is not made within 30 days,
interest on the unpaid balance will accrue beginning with the
31st day at the rate of 1 .0 percent per month or the maximum
interest rate permitted by law, whichever is lesser. Such
interest will become due and payable at the time said overdue
payment is made.
V AUTHORIZATION, PROGRESS, AND COMPLETION
Specific authorization to proceed with work described in
Exhibit B shall be granted in writing by the Owner within a
reasonable time after the effective date of this Agreement.
The Engineer shall not proceed with the work without such
authorization. The work shall be completed within 465 days
after receipt of the authorization to proceed .
For Follow-on and Special Engineering Services , the Owner's
authorization shall be in writing and shall include the
definition of the . work to be done, the schedule for
commencing and completing the work, and the basis of
compensation for the work.
VI. TEMPORARY SUSPENSION
The City's Project Manager shall have the authority to
suspend this agreement wholly or in part, for such period as
he deems necessary due to unfavorable conditions or to the
failure on the part of the Engineer to perform any provision
of this agreement. Engineer will be paid the compensation
due and payable to the date of temporary suspension.
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VII . SUSPENSION; TERMINATION
A. Right to Suspend or Terminate
The City retains the right to terminate this agreement
for any reason by notifying Engineer in writing 7 days
prior to termination and by paying the compensation due
and payable to the date of termination; provided ,
however, if this agreement is terminated for fault of
Engineer, City shall be obligated to compensate Engineer
only for that portion of consulting services which are of
benefit to City. Said compensation is to be arrived at
by mutual agreement of the City and Engineer and should
they fail to agree , then an independent arbitrator is to
be appointed and his decision shall be binding upon the
parties.
B. Return of Materials
Upon such termination, Engineer shall turn over to the
City immediately any and all copies of studies, sketches,
drawings , computations and other data, whether or not
completed , prepared by Engineer; and for which Engineer
has received reasonable compensation, or given to
Engineer in connection with this agreement. Such
materials shall become the permanent property of City.
Engineer, however, shall not be liable for City' s use of
incomplete materials or for City' s use of complete
documents if used for other than the project contemplated
by this agreement.
VIII. INSPECTION
Engineer shall furnish City with every reasonable
opportunity for City to ascertain that the services of
Engineer are being performed in accordance with the
requirements and intentions of this agreement. All work
done and all materials furnished , if any, shall be subject
to the City Project Manager' s inspection and approval . The
inspection of such work shall not relieve Engineer of any of
its obligations to fulfill its agreement as prescribed .
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IX. OWNERSHIP OF MATERIALS
All original drawings , plans, documents and other materials
prepared by or in possession of Engineer pursuant to this
agreement shall become the permanent property of the City,
and shall be delivered to the City upon demand .
X. INDEPENDENT JUDGMENT
Failure of City to agree with Engineer' s independent
findings , conclusions, or recommendations , if the same area
called for under this agreement , on the basis of difference
in matters of judgment shall not be construed as a failure
on the part of Engineer to meet the requirements of this
agreement.
XI . ASSIGNMENT: SUBCONTRACTOR' S EMPLOYEES
This agreement is for the performance of professional
engineering services of the Engineer and is not assignable
by the Engineer without prior consent of the City in
writing. The Engineer may employ other specialists to
perform special services as required with prior approval by
the City.
XII . NOTICE
All notices hereunder shall be given in writing and mailed ,
postage prepaid , by Certified Mail , addressed as follows :
To City: City Utilities Manager
City of San Luis Obispo
990 Palm Street
P.O. Box 8100
San Luis Obispo, CA 93403-8100
To Engineer: Brown and Caldwell
150 South Arroyo Parkway
P.O. Box 7103
Pasadena, CA 91109
XIII. INTEREST OF ENGINEER
Engineer covenants that it presently has no interest, and
shall not acquire any interest, direct or indirect,
financial or otherwise, which would conflict in any manner
or degree with the performance of the services hereunder.
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5 � � � .
Engineer further covenants that, in the performance of this
agreement, no subcontractor or person having such an
interest shall be employed . Engineer certifies that no one
who has or will have any financial interest under this
agreement is an officer or employee of City. It is
expressly agreed that, in the performance of the services
hereunder, Engineer shall at all times be deemed an
independent contractor and not an agent or employee of
City.
XIV. INDEMNITY
Engineer hereby agrees to indemnify and save harmless City,
its officers, agents, and employees of and from:
A. Any and all claims and demands which may be made against
City, its officers, agents or employees by reason of any
injury to or death of any person or corporation caused
by any negligent act or omission of Engineer under this
agreement or of Engineer employees or agents ;
B. Any and all damage to or destruction of any property,
including the property of City, its officers , agents, or
employees, occupied or used by or in the care, custody,
or control of Engineer, or in proximity to the site of
Engineer's work, caused by any negligent act or omission
of Engineer under this agreement or of Engineer' s
employees or agents;
C. Any and all claims and demands which may be made against
City, its officers, agents , or employees by reason of
any injury to or death of or damage suffered or
sustained by any employee or agent of Engineer under
this agreement, however caused , excepting , however, any
such claims and demands which are the result of the
negligence or willful misconduct of City, its officers,
agents, or employees;
D. Any and all claims and demands which may be made against
City, its officers, agents, or employees by reason of
any infringement or alleged infringement of any patent
rights or claims caused by the use of any apparatus,
appliance, or materials furnished by Engineer under this
agreement; and
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5 - 11.
E. Any and all penalties imposed or damages sought on
account of the violation of any law or regulation or of
any term or condition of any permit, when said violation
of any law or regulation or of any term or condition of
any permit is due to negligence on the part of the
Engineer.
Consultant , at its own costs , expense , and risks, shall
defend any and all suits , actions, or other legal
proceedings that may be brought against or for employees
on any such claim or demand of such third persons, or to
enforce any such penalty, and pay and satisfy any
judgment or decree that may be rendered against City,
its officers, agents , or employees in any such suit ,
action or other legal proceeding , when same were due to
negligence of the Engineer.
XV. WORKERS COMPENSATION
Engineer certifies that it is aware of the provisions of the
Labor Code of the State of California, which requires every
employer to be insured against liability for workers
compensation or to undertake self-insurance in accordance
with the provisions of that code , and .it certifies that it
will comply with such provisions before commending the
performance of the work of this agreement.
XVI. INSURANCE
For the duration of this Agreement, the Engineer shall
maintain the following minimum public liability and property
damage insurance which shall protect the Engineer from
claims for injuries, including accidental death, as well as
from claims for property damage which may arise from the
performance of work under this Agreement. The limit of
liability for such insurance shall be as follows :
A. Comprehensive general liability insurance, including
personal injury liability, blanket contractual
liability, and broad form property damage liability.
The combined single limit for bodily injury and property
damage shall be not less than $500 ,000.
B. Automobile bodily injury and property damage liability
insurance covering owned , non-owned , rented , and hired
cars. The combined single limit for bodily injury and
property damage shall be not less than $500 ,000.
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15 00 11 .
C. Statutory workers compensation and employers liability
insurance for the State of California.
The Engineer shall also maintain professional liability
insurance covering damages resulting from errors or
omissions of the Engineer. The limit of liability shall be
not less than $5 ,000 ,000 .
The Engineer shall submit to the Owner certificates for each
of the policies listed above. Each certificate. shall
provide that the insurance company give written notice to
the Owner at least 30 days prior to cancellation or any
material change in the policy. Certificates for
comprehensive general liability and automobile liability
policies shall provide that the Owner is named as an
additional insured .
XVII . AGREEMENT BINDING
The terms, covenants, and conditions of this agreement shall
apply to, and shall bind , the heirs, successors, executors,
administrators, assigns, and subcontractors of both
parties.
XVIII . WAIVERS
The waiver of either party of any breach or violation of
any terms, covenant, or condition of this agreement or of
any provision, ordinance or law shall not be deemed to be a
waiver of any subsequent breach of violation of the same or
of any other .term, covenant , condition , ordinance, or
law. The subsequent acceptance by either party of any fee
or other money which may become due hereunder shall not be
to be a waiver of any preceding breach or violation by the
other party of any term, covenant, or condition of this
agreement or of any applicable law or ordinance.
XIX. COST AND ATTORNEY' S FEES
The prevailing party in any action between the parties to
this agreement brought to enforce the terms of this
agreement or arising out of this agreement may recover its
reasonable costs and attorney' s fees expended in connection
with such an action from the other party.
Page 11 of 14
� - 19
XX. DISCRIMINATION
No discrimination shall be made in the employment of
persons under this agreement because of the race, color,
national origin, ancestry, religion or sex of such
person.
If Engineer is found in violation of the non discrimination
provisions of the state of California Fair Employment
Practices act or similar provisions of federal law or
executive order in the performance of this agreement , it
shall thereby be found in material breach of this
agreement. Thereupon , City shall have the power to cancel
or suspend this agreement, in whole or in part, or to
deduct from the amount payable to Engineer the sum of
Twenty-five Dollars ( $25 ) for each person for each calendar
day during which such person was discriminated against, as
damages for said breach of contract, or both. Only a
finding of the State of California Fair Employment
Practices Commission or the equivalent federal agency or
officer shall constitute evidence of a violation of
contract under his paragraph.
If Engineer is found in violation of the nondiscrimination
provisions of this agreement or the applicable affirmative
action guidelines pertaining to this agreement, Engineer
shall be found in material breach of the agreement.
Thereupon, City shall have the power to cancel or suspend
this agreement, in whole or in part, or to deduct from the
amount payable to Engineer the sum of Two Hundred Fifty
Dollars ( $250) for each calendar day during which Engineer
is found to have been in such noncompliance as damages for
said breach of contract, or both.
XXI. AGREEMENT CONTAINS ALL UNDERSTANDINGS
This document represents the entire and integrated
agreement between City and Engineer and supersedes al prior
negotiations , representations, or agreements , either
written or oral . This document may be amended only by
written instrument, signed by both City and Engineer. All
provisions of this agreement are expressly made
conditions . This agreement shall be governed by the laws
of the State of California.
IN WITNESS WHEREOF, City and Engineer have executed this
agreement on the day and year first above written.
Page 12 of 14
5 - 2o
XXII . SUBCONTRACTS
Engineer shall be entitled , to the extent determined
appropriate by the Engineer, to subcontract any portion of
the work to be performed under this Project. Engineer
shall negotiate and administer subcontracts in accordance
with 40 CFR 33 .295. The Engineer shall be responsible to
the Owner for the actions of persons and firms performing
subcontract work.
The Engineer is authorized by the Owner to subcontract work
having a cost which will not exceed 20 percent of the total
amount of compensation due under this Agreement.
Subcontractors selected as of the date of this Agreement,
and the nature of services to be performed by each , is as
follows:
Staal , Gardner, & Dunne, Inc.. Geotechnical Services
Engineering Development Associates Surveying Services
XXIII . JURISDICTION
This Agreement shall be administered and interpreted under
the laws of the State of California. Jurisdiction of
litigation arising from this Agreement shall be in that
state. If any part of this Agreement is found to be in
conflict with applicable laws, such part shall be
inoperative, null , and void insofar as it is in conflict
with said laws, but the remainder of the Agreement shall be
in full force and effect.
Page 13 of 14
5 - �i
The effective date of start of the work described in Exhibit B
shall be January 26 , 1988 .
BROWN./-ZND CAL LL CITY OF SAN LUIS OBISPO
By By
ervalz Anwar Ron Dunin, Mayor
Vice President
ATTEST:
Pamela Voges
City Cler
APPROVED:
Roger Pi uet
City At ney
Page 14 of 14
- Z2
EXHIBIT A
DESCRIPTION OF PROJECT
The project consists of implementation of the Wastewater
Management Plan adopted by the City of San Luis Obispo. This
recommended plan is described in Chapter 8 of the Wastewater
Management Plan dated October 1987. The project consists of three
elements : upgrade of wastewater collection system; improvements to
the wastewater treatment plant; and review of the potential
beneficial use options .
1. WASTEWATER COLLECTION SYSTEM
The wastewater collection system consists of 150 miles of
sewer lines and eight pumping stations. The collection system has
experienced high level of infiltration and inflow ( I/I) .
Cost-effective analysis will be conducted to determine if (a) the
collection system should be rehabilitated to reduce I/I; or (b)
larger relief sewers should be built; or (c ) additional storage ponds
should be constructed ; or (d ) the most cost-effective combination of
the above alternatives . An implementation program and a preliminary
design for the selected improvements to the collection system will be
developed during pre-design studies.
2. WASTEWATER TREATMENT PLANT
The wastewater treatment plant is a secondary treatment
plant, using trickling filters and ponds for biological treatment.
Although a portion of the effluent is used for irrigation during the
summer, most of it is discharged to San Luis Obispo Creek, which has
very low natural flows during the dry season. It is also an
important creek for steelhead spawning , and the discharge
requirements set by the Regional Board specify a stringent
ammonia-nitrogen limit to avoid toxicity effects on steelhead .
The treatment plant has also been unable to consistently
meet discharge requirements for 5-day biochemical oxygen demand
( BODS ) , and it has periodically exceeded limits for other
constituents such as suspended solids, oil and grease , and coliform
organisms. In addition, the treatment plant has several hydraulic
limitations. The design average dry-weather flow is approximately
Exhibit A
February 8 , 1988
Page 1 of 4
5 an
5 mgd . The wet-weather flow capacity of several process -- including
the influent pumping station, grit removal facility, primary
clarifiers , and effluent pipeline -- is about 10 mgd . A flow
equalization basin was constructed recently to help accommodate the
large I/I flows that occur during storms.
Several areas of treatment plant improvements have been
identified in Chapters 7 and 8 of the Wastewater Management Plan.
These improvements are briefly described here .
Elimination of Raw Wastewater Storage . Existing storage
tank and primary clarifiers will be retained . The
wastewater flow will be equalized after primary
clarification. The influent pumping station ' s capacity will
be expanded to accommodate the peak wet-weather flow of
22 mgd . New screening and preaeration/grit removal
facilities will be constructed ahead of influent pumping
station.
Eliminating Trickling Filter Flow from Primary Clarifiers .
Trickling filter effluent will be directed to the existing
secondary clarifier. Trickling filter effluent flow to the
primary clarifiers will be discontinued . Existing trickling
filters will be retained and will be operated in parallel .
Effluent Pipeline. The existing 24-inch diameter effluent
pipeline will be abandoned . New 36-inch pipeline will be
designed to convey treated wastewater to the chlorine
contact tank by-passing effluent ponds.
Potable Water Line to Chlorination Facility. The existing
2-1/2-inch PVC potable water line will be replaced with a
new higher-strength pipe .
Digester Spill Containment. A low berm around the digesters
will be constructed to contain any spillage from the
anaerobic digesters.
Electrical System Improvements . New electrical service and
power distribution system will be added to accommodate the
load increases associated with plant improvements. Existing
MCC A and B will be replaced . All field wiring and devices
installed prior to the 1962 plant expansion will be
replaced . . An analysis will be performed to identify the
emergency power needs in case of a power outage . A new
Exhibit A
February 8 , 1988
Page 2 of .4
5 --w 7.4.
electrical building will be constructed to house new
electrical equipment.
Sulfur Dioxide Evaporator . A sulfur dioxide evaporator will
be added to increase dechlorination capacity and to ensure
chlorine free water entering the receiving water.
Submerged Creek Discharge Structure . In order to minimize
foaming, the stream discharge structure will be modified so
that the effluent enters the stream below the water
surface. Relocation of the discharge to below the
confluence of .San Luis and Froom Creeks will evaluated .
Facultative Sludge Lagoon . A facultative sludge lagoon will
be constructed to receive decantate from the digested sludge
drying beds. A small brush aerator will be installed in the
lagoon to ensure that the lagoon surface area remains
aerobic. The decantate will be discharged evenly back to
the treatment facilities to prevent fluctuations in the
ammonia loading.
Advanced Wastewater Treatment Facilities . To meet the
stringent ammonia-nitrogen limits for stream discharge,
activated sludge process will be used . Existing primary
clarifiers, trickling filters (operating in parallel ) and
Clarifier No. 3 will continue to be used as a secondary
treatment facility. Flows from the existing secondary
Clarifier No. 3 will flow through a two-pass aeration tank
and then to two flocculator-clarifiers. Advanced treatment
facilities will be sized to handle a peak flow of 15 mgd .
Piping will be designed to divert higher flows either to the
equalization pond or to by-pass the activated sludge process
for blending with final clarifier effluent.
3 . BENEFICIAL USE OPTIONS
Four beneficial use options for the City' s treated effluent
will be evaluated during predesign phase of facilities design with
the goal of developing a beneficial use program for the City. The
four options include :
A. Stream enhancement -- Reestablishment and perhaps
irrigation of a strip of riparian vegetation along San
Luis Obispo Creek, to provide improved fish and
wildlife habitat, plus other stream enhancement
Exhibit A
February 8 , 1988
Page 3 of 4
5 �- Z
measures as determined to be appropriate and
beneficial .
B. Agricultural irrigation -- The use of effluent to
irrigate agricultural crops.
C. Landscape irrigation -- The use of effluent to
irrigate landscaped areas such as golf courses, parks ,
and industrial parks.
D. Laguna Lake indirect discharge -- Transport effluent
to retention basins above Laguna Lake and allow it to
percolate through and engineered sand and gravel
backfill to the lake.
A final report detailing the analysis and including a
recommended beneficial use program will be submitted to the City for
review and approval .
Exhibit A
February 8 , 1988
Page 4 of 4
45 - U
EXHIBIT B
SCOPE OF PLANNED ENGINEERING SERVICES
Planned Engineering Services to be performed under this
Agreement comprise and are limited to those specifically set forth
in this exhibit. These services are related to the implementation
of the Wastewater Management Plan, as described in Exhibit A and
hereinafter referred to as Project. . If , during the course of
performing the planned services, City and Engineer find that
additional tasks are required of the Engineer, such tasks will be
performed as Special Engineering Services or Follow-on Engineering
Services.
1.0 Project Management . Administer the project -- a
continuous function during all phases of the project.
Maintain liaison with the City of San Luis Obispo. Attend
and represent Brown and Caldwell at monthly meetings with
City' s staff. Provide City with periodic review materials
for critique during the monthly meetings . Encourage the
City's staff, especially the plant operators, to provide
their input on the design of various components of the
plant facilities.
Attend meetings with Regional Water Quality Control Board
( Regional Board ) to assure compliance with all
requirements .
Prepare monthly progress reports for submittal to the
City.
Maintain budget and time control .
1.1 Prepare Project Management Plan. Define each task to be
conducted , including sequencing , budget allocation and
establishing milestone. Establish project responsibili-
ties, staffing projections , project coordination require-
ments, and schedule of all meetings with the City staff.
Exhibit B
February 8 , 1988
Page 1 of 13
IS
1 .2 Coordinate State Revolving Fund Financing . Establish
strategy for obtaining State Revolving Fund financing .
Meet with SWRCB staff to review loan possibilities and to
determine if special issues should be addressed to
maximize the opportunity for obtaining the loan.
Coordinate submittals to SWRCB and prepare documents for
EPA funded projects. Any special requirements for the
State Revolving Loan financing , not specifically covered
by the various scope items included under planned
engineering services, will be provided under special
engineering services.
2 .1 Conduct "kick-off" meet ' Conduct a "kick-off" meeting
with the City' s engineering and operational staff at the
start of the predesign studies.
Collect available information necessary for the design of
the project. The information to be obtained will include :
o Available topographic and geotechnical information.
o As-built drawings
2 .2 Conduct a brainstorming session . Conduct a "brainstorming
session" with Brown and Caldwell project advisor and
City' s staff to discuss reclamation/beneficial use
options, wastewater collection system and wastewater
treatment plant design. It is anticipated that session
will be conducted over a 2-day period 'in San Luis
Obispo. Minutes of brainstorming session will be prepared
and distributed to all concerned.
2.3 Prepare geotechnical report. Perform geotechnical
investigations at the proposed facilities location. It is
assumed that a maximum of 7 drill holes will be
required . The depth of the drill holes will be :
1 hole to 40-foot depth
1 hole to 25-foot depth
5 holes to 20-foot depth
Exhibit B
February 8 , 1988
Page 2 of 13
is
Prepare a geotechnical report. Report will provide all
geotechnical data necessary for the design of the proposed
facilities. Specifically the following information will
be presented :
o Piezometric data for groundwater table .
o Moisture density test data.
o Grain size data
o Seismic analysis ( liquefaction potential of soils ) .
2 .4 Prepare site survey report. Determine the surveying
required to support the design of the project. Develop
topographic maps covering the area where new facilities
would be constructed .
2.5 Evaluate implementation of a stream enhancement program.
Identify agencies and organizations that might participate
in and provide funds for stream enhancement projects .
Also identify agencies (such as those with flood control
reponsibilities) that might have a nonparticipating
interest. Determine their specific interests and/or
concerns. Work with these agencies to evaluate and
implement projects.
Work with the Regional Board to determine how the intent
of the water quality objectives identified in the Basin
Plan and in the City' s discharge requirements could be met
through implementation of a stream enhancement program.
Identify specific stream enhancement projects that could
be implemented . These may include ( 1 ) reestablishment of
riparian vegetation; ( 2) irrigation of riparian
vegetation; ( 3 ) development of riparian parks; ( 4)
limiting cattle access to the stream; and ( 5) construction
of instream habitat improvement structures to enhance
steelhead spawning and rearing . Specific locations should
be identified , and the cooperation of riparian landowners,
where necessary, should be sought.
Exhibit B
February 8 , 1988
Page 3 of 13
is
Develop conceptual designs for the specific projects and
evaluate them on the basis of cost, overall benefits to
the community, and compatibility with Regional Board and
Basin Plan requirements. Prepare a letter report
summarizing the results of Task 2 .5 .
2 .6 Evaluate use of reclaimed water for agriculture irrigation
and landscape irrigation. Identify areas that are likely
candidates for irrigation. Review available soils data
and take soil samples from representative areas. Analyze
soils for chemical constituents plus such characteristics
as cation exchange capacity and sodium adsorption ratio.
Determine the chemical characteristics of the San Luis
Obispo wastewater treatment plant effluent. Evaluate the
compatibility of the effluent with the area soils.
Determine whether there is likely to be a market. for
reclaimed water. For agricultural irrigation, this will
involve discussions with local ranchers and farmers and
others who may have insight into local agriculture , such
as the county agricultural extension agent. For landscape
irrigation, facilities such as parks, golf courses, school
yards , cemeteries, industrial parks , and landscaped
highway medians are the most likely reuse sites.
Based on the above work, identify existing and potential
landscape vegetation and potential crops for the area .
Determine the compatibility of the effluent chemical
characteristics with the vegetation and crops, and prepare
preliminary conceptual designs for irrigation projects .
The main purpose of this step is to identify probable
costs. Determine whether the irrigators will be able to
afford the price of reclaimed water and , if not, determine
the degree to which the City would be willing to subsidize
the sale of reclaimed water. It must be remembered that
the agricultural irrigator will , in addition to having to
pay for delivery of reclaimed water to his property line ,
also incur costs for irrigation equipment, pumping , and
operation of the irrigation system. Landscape irrigators
may need water delivered at a suitably high pressure.
Some uses, particularly for landscape irrigation, may also
Exhibit B
February 8 , 1988
Page 4 of 13
�-3�
require higher treatment levels. Prepare a letter report
summarizing the results of Task 2.6 , including costs.
2.7 Evaluate indirect (subsurface) discharge of effluent to
Laguna Lake. Identify potential Laguna Lake discharge
projects.
Through discussions with the Regional Board and the
California Department of Health Services, document the
discharge requirements and treatment level needed for
specific discharge methods. Specific constituents for
which requirements must be determined include 5-day
biochemical oxygen demand ( BOD5 ) , ammonia-nitrogen, and
nutrients (nitrogen and phosphorus) . In addition, because
Laguna Lake is currently used as a body-contact
recreational impoundment, Title 22 requirements for those
types of water reclamation projects may apply. Prepare a
letter report summarizing findings.
Prepare a final report on beneficial use options . The
report will summarize the development and analysis of all
options developed and will recommend a beneficial use
program.
2.8 Review existing source detection data . Collect and review
existing smoke testing data. Collect and review existing
TV inspection data.
2 .9 Initial field work. Perform initial source detection work
in Basins B, .D, E. and H. Before any sewer rehabilitation
or extensive source detection work is performed in these
basins a cost-effectiveness evaluation is needed to
determine the optimum combination of sewer rehabilitation,
relief sewer construction, treatment plant modifications,
and flow equalization. Intensive flow monitoring will be
performed in these basins and existing smoke testing and
television inspection data will be reviewed . A
cost-effective evaluation will be conducted based upon the
above data to determine if any portions of the four basins
are cost-effective to rehabilitate . If rehabilitation is
cost-effective , additional source detection may be
necessary to determine the appropriate rehabilitation
methods for each sewer reach. Following subtasks will be
Exhibit B
February 8 , 1988
Page 5 of 13
is - 31 .
performed to identify sewer reaches with I/I and to
perform a cost-effective evaluation to determine if the
reaches should be evaluated .
o Conduct an intensive flow monitoring program with
approximately 12 temporary flow monitors in Basins B,
D, E and H to identify portions of the Basins with
high I/I rates. The intensive flow monitoring
program will be conducted as a cooperative effort
between Brown and Caldwell and City. The monitor
calibrations will be checked by the City collection
system maintenance crews.
o Perform flow data analysis to determine I/I rates
from each subbasin.
2 . 10 Develop alternative to handle I/I flows . I/I flows can
be handled by one or more of the following : sewer
rehabilitation, relief sewers, in-line or off-line
storage in the collection systems, storage at the
treatment plant, and expanded treatment plant. Develop
above options for analysing Task 2 .11.
Individual subbasins developed in Task 2 . 9 will be
identified for potential rehabilitation.
Develop alternatives for in-line and off-line storage in
the collection system. Develop treatment plant
modifications including enlarged influent pump station
and grit removal facilities , additional primary
clarifiers , new equalization basins , and increased
overall hydraulic capacity.
2. 11 Evaluate alternatives to handle I/I flows . Evaluate the
alternatives developed in Task 2.10 to determine the best
approach for the City to handle I/I.
Perform a detailed cost-effectiveness evaluation to rank
the alternatives by their cost-effectiveness . The
analysis will be based upon life-cycle costs and account
for the various projected useful lives of the
alternatives. The analysis , will also account for
Exhibit B
February 8 , 1988
Page . 6 of 13
- 32
differences in operational , maintenance , and power
costs.
Evaluate other factors such as community disruption,
environmental disruptions, and reliability, for the
alternatives .
2 .12 Develop collection system preliminary design and
implementation program. Collect existing information on
potential major utility interferences from the
appropriate utility companies. Obtain and review
as-built information on existing sewers.
Develop alternatives for relief and replacement sewer
alignment and storage basin placement. Alternative
alignments and preliminary profiles for relief,
replacement and new sewers will be developed at 1" = 400 '
scale.
Evaluate alternatives to recommend the best
alternatives. Develop preliminary cost estimates and
study non-economic factors such as community disruptions ,
environmental disruptions and implementation program for
each alternative.
Develop preliminary design of the recommended
alternatives. The preliminary design will include the
following :
o Detailed design criteria
o Hydraulic design
o Detailed preliminary cost estimate
Develop an implementation program for the selected
improvements to the collection system. The
implementation plan will show the recommended schedule of
construction and revenue program. The recommended
alternatives will be divided into several construction
packages. The project size will be based upon the
bonding capacity of local pipeline construction firms.
Exhibit B
February 8 , 1988
Page 7 of 13
5 - 33
Prepare a preliminary design and program management
report. The report will summarize the development and
analysis of the projects and present the recommended
design and construction scheduled and preliminary cost
estimates. The report will also include the preliminary
design of the projects including design criteria ,
recommended design flow, vertical and horizontal
alignments, pipe diameters, rehabilitation methods, and
storage location and size. Drafting and surveying
standards will be included to help ensure high quality
designs that provide the necessary improvements in the
collection system. New, relief, and replacement sewers
will be shown in plan and profile. Sewer rehabilitation
will be shown in plan. Design of proposed improvements
will be performed by others .
2 .13 Prepare treatment plant basis-of-desi n report. Prepare
basis-of-design report for the recommended modifications
to the treatment facilities. This report will focus on
refinements to the design criteria for the proposed
treatment facilities, based on the outcome of the
reclamation/beneficial use studies and the collection
system studies. The report will also include:
o Major process and instrumentation diagrams.
o Major process equipment list.
o Plant layout.
o Process flow diagrams and hydraulic capacity
determinations.
o Preliminary construction cost estimate.
o Design and construction schedule .
2. 14 Predesiqn review. Conduct predesign review meeting with
Brown and Caldwell Review Board and the City engineering
and operations staff. Make formal presentation to the
City council if requested . Incorporate comments and
submit the final report.
Exhibit B
February 8 , 1988
Page 8 of 13
� -� 3y
3 .1 Identify underground utilities . Review the existing
drawings and identify the pot-hole locations for iden-
tifying underground utilities in the immediate vicinity
of the proposed facilities and pipelines. Information on
pipe size, service type , depth and location of pipelines
will be developed for detailed design. This task does
not include the pot-holing effort.
3 .2 Prepare plans and specifications for bidding purposes .
Design new facilities as recommended by the predesign
report. For determination of effort required for this
task, it is assumed that number, sizes and locations of
all proposed facilities will be as discussed in
Wastewater Management Plan for stream discharge
alternative. The above assumptions will be validated
during the predesign phase and scope of work adjusted
accordingly. Detailed design will include design of the
following facilities/structures :
• o Screening facility
o Preaeration/grit removal tanks
o Expanded influent pumping station
o New 36-inch effluent line
o Potable water line to chlorination facility
o Sulfur dioxide evaporator
o Submerged creek discharge structure
o Digester spill containment berm and return pump
o Facultative sludge lagoon
o Electrical system improvements
o New electrical building
o Activated sludge aeration tank
Exhibit 8
February 8 , 1988
Page 9 of 13
15 VO 14
o Secondary clarifiers
o Return activated sludge and waste activated sludge
pumping stations
o Blower building
o Motor control center building
o Dissolved air flotation thickener
The design of above facilities will include architectur-
al , civil , structural , mechanical , electrical , and in-
strumentation disciplines . Demolition and removal of
existing facilities to be abandoned will be included in
the design.
Architectural design will include basic building layouts,
selection of building materials, and interior and ex-
terior treatment of the buildings.
Civil design will include site layouts, computation of
survey control data and paving , grading , landscaping ,
drainage, outside piping, and other civil engineering
items for the project.
Structural design will include design of foundations ,
buildings, process structures, piping supports, hand-
rails , repair and modifications to existing structures ,
and miscellaneous special construction:
Mechanical design will include final selection of mechan-
ical equipment, arrangement of equipment and piping , and
process schematics showing related controls, piping , and
power features. Mechanical design also includes modifi-
cations to existing equipment and piping , where necessary
for the work on this project.
Electrical design will include service analysis of power
utility service, determination of power requirements, de-
sign of electrical distribution system, motor control
centers, lighting and circuit diagrams and electric
motors and switchgear.
Exhibit B
February 8 , 1988
Page 10 of 13
J5 00 -34
Instrumentation design will include an evaluation of
specific control systems for various processes and
systems specified . Under this task, control panels will
be designed , control systems configured and display
components selected .
3 .3 Design reviews . Conduct design reviews with in-house
Design Review Board at roughly 40 percent and 70 percent
design completion levels. Invite City staff to these
design reviews.
Incorporate review comments in design documents.
3 .4 Prepare project schedule. Prepare design and
construction schedule updates to the schedule presented
as part of the basis-of-design report. The schedule
updates will be at 40- , 70- , and 90-percent completion
levels.
3 . 5 Prepare construction cost estimates . Update estimates of ,
project construction cost, developed as part of the
basis-of-design report, at various design completion
stages. Submit to the City these updates at 40- , 70 and
90-percent completion level . Present these cost
estimates categorized by major project components.
During the early design phase , develop the estimates of
project components from historical data of similar
projects adjusted for unique aspects of this project.
Prepare later phase estimates of more fully designed
components from unit costs in a Construction
Specifications Institute ( CSI ) format.
3 .6 Value engineering . Throughout the project provide a
review of the developing design by construction
specialists , process specialists and engineering
discipline specialists. These specialists and City
staff , principally plant operations personnel , will
identify and evaluate value engineering recommendations
to the design team and the City. Cost estimators will
perform tradeoff studies and cost evaluations of various
approaches , materials and methods. The design team will
review value engineering recommendations and propose
Exhibit B
February 8 , 1988
Page 11 of 13
5 -3
changes in design to the City for concurrence. Value
engineering recommendations, which change the design
already completed , will be incorporated under special
engineering services.
3 .7 Cost planning and monitoring . Establish a cost planning
and monitoring process to aid in predicting and
containing final project cost and enhancing value. This
process will begin with the cost estimators who
participate in Task 3 . 6 , assisting the design team and
the City at approximately 10 percent design to establish
a project Cost Model composed of component budgets .
Components will include both discrete project elements
such as process unit that can reasonably be foreseen and
also appropriate contingencies for those elements which
cannot be foreseen at the start of the project. The
design team and cost estimators will set component
budgets based on historical cost data and judgment. The
sum of all the individual component budgets will be the
Cost Model .
At 40- 1 70- and 90-percent estimates , cost estimators
will prepare cost estimates in the format of the Cost
Model as defined in Task 3 . 5 above . The estimate will
display the budgeted cost, an estimated cost and cost
variance . Significant variances between budgeted and
estimated component costs will focus value engineering on
that component.
3 .8 Prepare bidding plans and specifications . Coordinate
preparation of plans and specifications for bidding
purposes. Prepare one reproducible copy of plans and one
camera ready set of specifications for City' s use in
preparing bid documents.
4 .1 Provide bidding assistance . Provide assistance to the
City during the bidding of the proposed project. The
services under this task will include the following :
o Attend a pre-bid conference and respond to questions
during the bid period.
o Prepare all addenda to the contract documents.
Exhibit B
February 8 , 1988
Page 12 of 13
o Assist the City in evaluations of bids and in
selection of construction contractor.
Exhibit B
February 8 , 1988
Page 13 of 13
5 -39.
EXHIBIT C
COMPENSATION
Compensation for services provided under Article IIB,
"Scope of Engineering Services, " shall be in accordance with the
methods described in this Exhibit and the specific amounts shown on
the attached schedule, or as may be later mutually agreed to.
Compensation for each authorized task or project shall be
on the basis of one of the following types of compensation:
1. Firm Fixed-Price
2. Cost Reimbursement
3 . Per Diem Rate
4 . Hourly Rate
I. FIRM FIXED-PRICE
Compensation for each authorized firm fixed-price task
shall be as listed on the attached schedule, or as may be mutually
agreed upon at the time of the work if authorized .
II . COST REIMBURSEMENT
Compensation for each authorized cost reimbursement task
shall be the sum of the cost reimbursement portion and the fixed
professional fee for each task listed on the compensation schedule
included herein, subject to such later mutually accepted
modifications in writing as may be allowed herein.
The cost reimbursement portion of the compensation shall be
the sum of direct labor costs , indirect costs, and other direct
costs, as herein defined . The cost reimbursement for each
designated engineering service shall not exceed the cost ceiling
listed in the compensation schedule without formally amending this
Agreement.
Exhibit C
February 8 , 1988
Page 1 of 7
6-40
1 . Direct Labor Costs . Direct labor costs shall be the
total number of hours worked on the job by each
employee times each employee ' s regular time rate.
Direct labor costs shall not include any distribution
of profits.
2 . Indirect Costs. Indirect costs shall be the product of
all direct labor costs multiplied by an overhead rate
of 1 .85 .
3 . Other Direct Costs . Other direct costs shall be billed
at cost and shall include the following :
a. Services directly applicable to the work, such as
special legal and accounting expenses; computer
rental and programming costs ; special consultants;
borings; laboratory charges; commercial printing
and binding ; and similar costs that are not
applicable to general overhead .
b. Identifiable reproduction costs applicable to the
work, such as printing of drawings, photostating ,
multilithing , printing , and similar costs .
C . Identifiable communication expenses, such as
long-distance telephone , telecopying , telegraph ,
cable, express charges, and postage other than for
general correspondence.
d . Living and traveling expenses of employees when
away from home office on business connected with
work.
e. Automobile expenses at Engineer' s current mileage
rate.
f. Subcontracted services .
4. Fixed Professional Fee. Fixed professional fee for
engineering services shall be the amount listed in the
attached schedule for each authorized task. The fixed
fee shall not be modified unless there is a change in
scope or there is a delay of more than six ( 6 ) months
in authorizing one or more of the tasks.
Exhibit C
February 8 , 1988
Page 2 of 7
5-41
5 . Limitation of Cost and Time. It is estimated that the
total cost ceilings for Planned Engineering Services
given in Section V.A of this Exhibit and the time for
completion given in this Agreement will not be
exceeded. The Engineer agrees to use his best efforts
to perform the work specified in Exhibit B within the
estimated cost and time of completion.
If, at any time, the Engineer has reason to believe
that the total cost or time for the performance of
work under this Agreement will be greater or
substantially less than the estimated ceiling cost or
estimated time of completion given in this Agreement,
the Engineer shall immediately notify the Owner in
writing.
III . PER DIEM RATE
Compensation for each service or task authorized on a per
diem basis shall be the sum of per diem labor charges and other
direct costs. Reimbursement for services performed on a per diem
basis shall not exceed the price ceiling listed in the compensation
schedule without formally amending this Agreement.
1. Per Diem Labor Cost . Per diem labor cost shall be the
total number of days or parts thereof worked on the
job by each employee , times the appropriate per diem
billing rate shown on the schedule approved at the time
of authorization. Per diem billing rates cover direct
labor, indirect costs , plus professional fee. The
tabulation of per diem billing rates shall designate
the effective date , and identify those portions
of the per diem rate. which are allocable to direct
labor, overhead , and professional fee. Billing
rates shall be revised annually, or more often as
mutually agreed , to reflect relevant changes in
engineering salary costs. Revisions of the billing
rate tabulation shall be approved by the Owner.
2. Other Direct Costs. other direct costs shall be billed
at cost and shall include the following :
Exhibit C
February 8 , 1988
Page 3 of 7
Is — yX
a. Services directly applicable to the work, such as
special legal and accounting expenses; computer
rental and programming costs; special consultants;
borings; laboratory charges; commercial printing
and binding ; and similar costs that are not
applicable to general overhead .
b. Identifiable reproduction costs applicable to the
work such as printing of drawings, photostating ,
multilithing, printing , and similar costs.
C. Identifiable communication expenses such as
long-distance telephone , telecopying , telegraph ,
cable, express charges, and postage other than for
general correspondence .
d . Living and traveling expenses of employees when
away from home office on business connected with
work.
e. Automobile expenses at Engineer' s current mileage
rate.
f. Subcontracted services.
IV. HOURLY RATE
Compensation for each service or task authorized on an
hourly rate basis shall be the sum of hourly labor costs and other
direct costs, as herein defined. Reimbursement for services
performed on an hourly rate basis shall not exceed the price
ceiling listed in the compensation schedule without formally
amending this Agreement.
1 . Hourly Labor Cost. Hourly labor cost shall be the
Total number of hours worked on the job by each
employee times the appropriate billing rate. The
billing rate for each category of employee shall be set
forth in a -rate schedule agreed upon at the time of
authorization of hourly rate work. Billing rates shall
be revised annually, or more often as mutually agreed ,
to reflect relevant changes in engineering salary
costs. Revisions of the tabulation of hourly billing
rates shall be approved by the Owner.
Exhibit C
February 8 , 1988
Page 4 of 7
S - y3
2 . Other Direct Costs . Direct nonsalary cost shall be
Actual costs and shall include the following :
a. Services directly applicable to the work such as
special legal and accounting expenses; computer
rental and programming costs ; special consultants;
borings ; laboratory charges; commercial printing
and binding ; and similar costs that are not
applicable to general overhead .
b. Identifiable reproduction costs applicable to the
work such as printing of drawings, photostating ,
multilithing , printing, and similar costs .
C. Identifiable communication expenses such as
long-distance telephone , telecopying , telegraph,
cable, express charges, and postage other than for
general correspondence.
d . Living and traveling expenses of employees when
away from home office on business connected with
work.
e. Automobile expenses at Engineer' s current mileage
rate.
f. Subcontracted services.
V. COMPENSATION SCHEDULE
For each task authorized under this Agreement, compensation
shall be in accordance with the applicable portions of this
Agreement and the following schedule :
A. PLANNED ENGINEERING SERVICES
Compensation for the Planned Engineering Services
(Article IIB. 1) shall be as follows:
Basis of compensation Cost reimbursement
Cost ceiling $932 ,535
Fixed Professional fee $114 ,500
Professional fee payable Proportional to
per billing period the work completed .
Exhibit C
February 8 , 1988
Page 5 of 7
Ar ��r
B. FOLLOW-ON ENGINEERING SERVICES
Compensation for Follow-on Engineering services
(Article IIB.2) shall be agreed at the time of
authorization. An allowance of $319 ,500 shall be
established for such Follow-on Engineering Services as
may be authorized by the City in accordance with
Article IIB. 2. This allowance shall not be increased
without an amendment to this Agreement.
Basis of compensation
C. SPECIAL ENGINEERING SERVICES
Compensation for special engineering services
(Article IIB. 3 ) shall be agreed to at the time of
authorization. An allowance of $137 ,000 shall be
established for such special engineering services as
may be authorized by the City in accordance with
Article IIB.3 . This allowance shall not be increased
without an amendment to this Agreement.
VI . INVOICES
Charges for reimbursable costs determined in accordance
with this Exhibit shall be billed to the Owner in summary form at
four-week intervals.
1 . Firm Fixed-Price Invoices . Invoices for firm fixed-
price tasks shall be based on the percentage completion
of the work, as determined by the Engineer and approved
by the Owner.
2 . Cost Reimbursement Invoices . Invoices for cost
reimbursement tasks shall present the sum of all direct
labor, indirect costs , and other direct costs incurred
during the billing period plus a percentage of the
fixed professional fee. Direct labor charges will be
summarized as total hours and total cost for
professional , technical , and clerical personnel
categories. The amount of fixed professional fee due
for the billing period will be given.
Exhibit C
February 8 , 1988
Page 6 of 7
5 - 45
3 . Per Diem Invoices . Invoices for per diem tasks shall
present the sum of labor charges and direct costs
incurred during the billing period . Labor charges
shall be computed by multiplying the total number of
days and parts thereof expended within each labor
category by the applicable per diem rate .
4 . Hourly Rate Invoices. Invoices for hourly rate tasks
shall present the sum of labor charges and direct costs
incurred during the billing period . Labor charges
shall be computed by multiplying the total number of
hours expended within each labor category by the
applicable hourly rate.
Exhibit C
February 8 , 1988
Page 7 of 7
5 - fi4
A RESOLUTION OF THE COUNCIL OF .THE CITY'.-..
OF
ITY;::OF SAN LUIS OBISPO AUTHORIZING -A SHORT-TERM-.:LOAN
FROM THE WATER AND THE SEWER FUND TO THE' -
WASTEWATER MANAGEMENT PLAN IMPLEMENTATION .FUND
... ._ IN--THE TOTAL AMOUNT OF $1.2 MILLION
WHEREAS, the City of San Luis Obispo desires to retain the
firm of Brown and Caldwell to provide technical services for the
Wastewater Management Plan Implementation; and
WHEREAS, the finding for these technical services is
approximately $1.2 million; and
WHEREAS, sufficient Reserve Funds are available in the Water
and Sewer Funds to finance this amount on an interim basis.
NOW THEREFORE, BE IT RESOLVED that the Finance Director is
authorized to provide a short term loan not to exceed twenty four
(24) months from Water and Sewer fund reserves in the amount of
$1.2 million. The loan is to be repaid with interest based on
the City's current market rate.
On motion of , seconded
by and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day
-.of , 1988.
MAYOR RON DUNIN
ATTEST:
CITY CLERK PAMELA VOGES
67