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HomeMy WebLinkAbout1975-06-03; City Council; 3346-1; Sewer Master Plan and Finance Program study(I i i ,.lf . I- CIm OF CARESW I I AGENDA BILL NO. 33464 -e/ Initial: .I Dept. Hd .m C. Mgr. DATE: June 3, 1975 _,_ .- DEPARTMENT: __ Engineerina Subject: SEWER MASTER PLAN AND FINANCING PROGRAM STUDY I Statement‘ of the Matter i At its last meeting in April, the City Council directed staff to prepare a contract agreement with the firm of Brown and Caldwell for engineering and management services for a comprehensive sewer . master plan and financial study. The attached agreement is submitted for Council consideration. Exhibits 1. Proposed agreement with Brown and Caldwell 2. Resolution No.- Recommendation Staff recommends.that the City Council adopt Resolution No. Study. approving the agreement for the Sewer Master Plan qnd Counci 1 .Action 6-3-75 Resolution 3655, approving an agreement between the City and Brown and Caldwell for Sewer Master Plan and Financial Study and authorizing the Mayor to execute said agreement, was ‘adopted by title only. / . .. .’ *. . 1- 1 2 3 4 5 6 7 8 9 10 21 12 13 14 15 16 17 18 19 20 21 22 23 . 24 25 26 27 28 29 RESOLUTION NO. ‘ 3555 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN AGREEMENT BETWEEN THE CITY OF CARLSBAD AND BROWN AND CALDWELL FOR SEWER MASTER PLAN AND FINANCIAL STUDY AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of CariLkqd, California, does hereby resolve as follows: 1. .That that certain agreement between the City of Carlsbad and Brown and Caldwell for a Sewer Master Plan and Finan- sial Study, a copy of which is attached hereto marked Exhibit “A” 2nd incorporated herein by reference, is hereby approved. 2. That the Mayor of the City of Carlsbad is hereby 3uthorized and directed to execute said agreement for and on behalf of the City of Carlsbad. PASSED, APPROVED A’ND ADOPTED at a regular meeting of the City Council of the City of Carlsbad., California, held on the 3rd day of June , 1975, by the following vote, to rJit: AYES: Councilmen Frazee, Chase, Lewis and Councilv!oman NOES: Councili!!an Skotnicki. Casler. .. ABSENT: None. I. \ 4TTEST: AGREEMENT FOR ENGINEERING SERVICES TO PROVIDE A SEWER MASTER PLAN AND FINANCIAL PLAN FOR THE CITY OF CARLSBAD SEWER SYSTEM THIS AGREEMENT made.and entered into this day of , 1975, by and between the CITY OF CARLSBAD, a municipal corporation of the State of California, herein- after referred to as "City", and BROWN AND CALDPELL, a Cali- fornia corporation, hereinafter referred to as "Engineer". WITNESSETH: WHEREAS, the City has determined that future growth . will necessitate the construction of additional' collection and transmission sewer systems; and. WHEREAS, it will be necessary and desirable to con- struct additiorml sewer facilities to accommodate future growth; and .. WHEREAS, it will be necessary to set up a plan for . funding said construction; and WHERSAS, it is desirable to establish policies and procedures to administer the City sewer system: and WEREAS, the firm of Brown and Caldwell has provided satisfal ory services for the City in the past and has sub- mitted a proposal in writing to perform the required ser- vices; and WHEREAS, it is desirable that the City retain the servj-ces of Brown and Caldwell as consulting engineers to perform the services in the manner, at the time and for the .\ compensation set forth herein; NOW, THEMFORE, the parties agree as follows: 1. Scope of Engineering Services. The Engineer will provide professional engineering and management services necessary for the completion of the sewerage master plan study and the sewerage financial plan and rate study as follows: Phase A. Sewerage Master Plan Study. - 1. Study Area. An analysis will be made of the existing City sewerage service area, adjacent sewered and unsewered areas,including portions of the City of Oceanside, and topdgraphy to define the study area and major sewerage .. service areas for the master plan study. 2. Environmental Characteristics. A review will be made of the physical and economic characteristics of the study area which are significant to sewerage systems. These characteristics include topography, climate and general economic environment of the study area. .. 3. Area Development. PlanneZ land use and population growth and distribution will be defined based on the recently adopted Land Use Element of the City's General Plan. 4. 'Existing Sewerage System. An' evaluation Will be made of the capacities and physical conditions of exist- ing trunk and interceptor sewers to identify any existing system deficiencies, to determine existing and future needs, ' and to assess' their adequacy and suitability. for incorporation 2. ,.c . into a long-range plan. 5. Wastewater Flow Characteristics. Present wastewater flow rates generated in the study area, during both dry and wet weather conditions, will be defined for the . purpose of establishing unit design factors. Design factors for sewers will include both.average and peak rates of flow on a per-capita or per-acre basis with allowances for storm- water inflow and infiltration. 6. Basis of Project Development. Design criteria and standards of construction will be established for the construction of trunk and interceptor’sewers and pumping stations as well as the basis for construction cost estimates and the annual costs of amortization, operation and mainte- nance. 7. Wastewater Management Plans. Sewerage sub- areas will be defined,and projected wastewater flow rates will be developed for each subarea. To expedite the computa- tional processes involved, a digital computer model will be utilized to generate these data at specified time’intervals. Alternative sewerage system improvement plans will be devel- oped and evaluated. 8. ‘Long-range Improvement Program. Utilizing the data generated in previous study tasks, a long-range sewerage improvement program or master plan will be developed. This plan will be set forth as a staged1 construction program necessary to alleviate existing deficiencies .and to serve 3. .- I future unsewered areas. 9. Short-term Capital Improvement Program. A detailed five-year schedule will be developed for construc- tion of those sewerage improvements immediately needed. This program will be utilized as input to the sewerage finan- cial plan and rate sfudy. 10. Final Report. Fifty printed copies of the final report will be submitted to the City. Phase B. Financial Plan and Rate Study. 1. Review of Wastewater Utility Accounting and I Billing -Procedures. Existing wastewater utility accounting and billing procedures will be studied and revisions will be recommended to meet reporting requirements stipulated in federal and state regulations to qualify for grants-in-aid. Requirements for a wastewater utility accounting system will be outlined which will demonstrate that collections and .. disbursements are being made in compliance with State Water Resources Control Board guidelines. Propcsals may be inclad- ed for establishing a chart of accounts, a balance sheet, an annual income statement showing functional cost detail, and a fixed asset and depreciation accounting system appropriate for cost allocation purposes. 2. Customer Inventory. Comprehensive customer inventories will be prepared by means of field surveys to assure completeness of the present billling roll. Each customer served by the.wastewater utility will be identified and 4. .- classified as a single family residential, multiple unit residential, commercial or industrial user. The number of dwelling units served within each multiple unit dwelling and mobile home park also will be determined. Each commercial ' user will be classified by enterprise category, to permit implementation of user charges based on wastewater strength characteristics as well as on wastewater volume. 3. Bill Analysis. A wastewater bill analysis will be performed,and the annual revenues contributed by each customer class through user charges will b,e determined. The tax'assessment rolls'will be analyzed,and the annual revenues contributed by each customer class through ad valorem taxes for sewer bond debt service also will be determined. .. 4. Projected Wastewater Volumes, Loadings and Number of Customers. The number of customers within each 'customer class will be projected by year, for the next five years, based on the planned development ar,d expansion of the existing service area. Future wastewater volumes and load- ings will be projected based on the existing relationship between water usage and wastewater discharges for each class of customer and'on the existing wastewater characteristics for each class of customer. 5. Capital Improvement Program. The short-term capital improvement program developed firom the Sewerage Master Plan Study and the Project Report for-the Phase I11 5. x Enlargement and Upgrading of the Encina Water Pollution Control Facility (WPCF) will be. utilized to determine the scheduled construction dates and the current cost estimates for necessary additions, replacements and improvements to the l'ocal wastewater system and the City's share of the Encina Phase I11 project. Projected construction costs will be escalated on the basis of current trends in the appropriate construction cost indexes, and projections of capital expenditures by year for the next five fiscal years will be prepared. 6. Policies for Financing System Expansion and .Capital Improvements. Recommendations will be prepared for financing additions, replacements and improvements to waste- water system facilities by existing users and -by new appli- cants for service. Policies will be formulated governing implementation of the following: (a) Developers and new applicants for service. (1) Contribution of in-tract facilities and special facilities by developers. (2) Service lateral installation charges. (3) Sewer extension and oversizing policies. (4) Connection charges or acreage charges. (5) Annexation charges. 6. (6) Formation of special assessment districts. (b) Existing users (1) Capital outlays to be funded from currept revenues. (2) Capital improvements to be financed by long-term debt. (3) Ad valorem taxes. Recommendations also will be prepared regarding the establishment and maintenance'of a capital reserve fund for the'wastewater utility. 7. Annual Revenue Requirements. The current wastewater utility operating and maintenance expense accounts will be analyzed by individual subaccount. Projections by year for the next five fiscal years will be prepared based on system expansion attributable to area development, the capital improvement program and the enlargement and upgrading of the Encina WPCF project. Projections will.be adjusted for cost escalation due to inflation. An analysis will be made of existing and proposed debt service expenses, capital outlays to be financed from current revenues, capital reserve fund accruals and all other cash requirements of the wastewater utility. The size of the unencumbered fund balances and trust fund balances cur- rently available to the wastewater util\ity will be ascertained, and the net additional revenue requirements by year, for the 7. next five years, will be determined. 8. Sources of Funds. Revenues available to the wastewater utility from the following sources of funds will Contributions in aid of construction. Service'lateral installation charges. Sewer extension charges. Connection charges or acreage charges. Annexation charges. Funding from' special assessment districts State and federal grants in aid of con- struction. Proceeds from the sale of bonds. Ad valorem taxes. .Interest income. User charges. Revenues anticipated 'from each of the above sources of funds during the next five years will be deter- mined on the basis of the projected water and wastewater volumes and number of customers and compared with the pro- jected annual revenue requirements. Amounts which should be recovered from each source of funds to match the require- ments of the use of funds will be established. 9. Design of Wastewater Utility Rates and Charges. A cost-of-service study will be prepardd for the wastewater utility which'recognizes the commodity-related, demand- 8. ’ related and ci stomer-related elements of cost. Costs t ill be-allocated to each class of customer based on customer usage characteristics, and the annual reyenue requirements to be recovered from each class of customer served will be determined. Schedules of rates and charges will be prepared for wastewater service that will equitably recover the cost of providing the service to each class of customer served. Resulting annual revenues will match the projected annual revenue requirements. Appropriate wastewater strength sur- charges will be developed for commercial and industrial users that discharge extra-strength wastewater. Consideration will be given to the following additional factors in establishing the schedule of wastewater utility rates: (a) Allowances for landscape irrigation and consumptive water usage. Equity of rates per dwelling unit for multiple-unit dwellings and mobile homes, as compared to single family dwellings. Compatibility of wastewater ‘customer classifications and rate structures with State Water Resources Control Board and U. S. Environmental Protection Agency guidelines (Revenue Program Guidelines for Municipalities Seeking Clean Water Grants, State Water Resources Control 9. Board, September, 1974). (d) Consistency of customer classifications and procedures to facilitate combined . water and wastewater billing by the City. (e) Compliance with existing bond covenants , and statutory requirements. 10. Preparation of a Sewer Use Ordinance. The present rules, regulations and ordinances applicable to the wastewater utility will be studied and a proposed new Sewer Use Ordinance will be developed for the City of Carlsbad that will document the policies forrate-making, ad valorem taxation, special assessments and connection charges appli- cable to new customers joining the system, special charges to areas to be annexed to the’City, charges for sewer extcn- sions and oversizing, charges .for installing service laterals, and contributions of in-tract facilities and off- site facilities by developers. 11. Final Report. Fifty printed copies of the . final report will be submitted to the City. 2. Scope of City Staff Assistance. The City will make its records available to determine existing sewer con- nections and existing rates being charged to users. City staff participation in assisting the Engineer and collecting and researching information shall not exceed 866.67 man- hours (5 man-months at 173.33 man-hours per month). 10. 3. Progress and Completion. Engineering services as provided herein shall begin promptly following written authorization by the City. Completion of Phase A (Sewer Master Plan) and Phase B (Financial Plan and Rate Study) as described in paragraph 1 above shall be in accordance with the following schedule: , Phase A shali be completed within 180 calendar days after written authorization to proceed. Phase B shall be completed within 90 calendar days after,completion of Phase A. 4. Compensation. Fees for engineering services pro- vided in paragraph 1 above will be determined on the basis of the rates in the proposal dated March 3, 1975, and by the direct nonsalary costs as hereinafter defined, except that the total fee for engineering .services will not exceed the guaranteed maximum fee given in paragraph 5 below. Direct nonsalary cost is an amount determined by multiplying actual costs by a factor of 1.10. Direct non- . salary'costs include the following: (a) Services directly applicable to 'the work such as computer rental' and programming costs associated with engineering analyses for the project, special consul- tants, 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, 11. .- A multilithing, printing and similar costs.' (c) Identifiable communication expenses such as long distance telephone, telegraph, cable, express charges and postage other than for general correspondence. (a) Living and trayeling expenses of employees when away from home office on business connected with the work, except for automobile travel which shall be at the rate of 15 cents per mile. 5. Guaranteed Maximum Fee. The guaranteed maximum fee for engineering and management services described in para- graph 1; Phases A and B, shall be $45',000.00. .. 6. Payment of Fees. Charges determined on the basis set forth in para-graph 3 above shall be billed on a monthly basis. on or before the 15th day of each calendar month .. following any month in which Engineer performs services. Invoices shall contain the following: (1) Each item of direct salary costs showing the number of hours worked by each person for whom a charge is made,.toyether with the nature of the work performed, (2) each item of direct non- salary costs, (3) the precise proportion of each invoice attributable to overhead and profit, and (4) an itemization .. 'of any miscellaneous engineering services rendered containing the data set forth in (1) , (2) and (3) above. Invoices which are not disputed in writing by the City and which are more than 90 days past due shall be subject'to interest charges at the rate of seven percent per annum. Payfient of fees 12. shall not exceed ninety percent of the guaranteed maximum fee until the City Council accepts Phase A and B reports. 7. Responsibility - of the Engineer. The Engineer is employed herein to render a professional service only and any payments made to him are conpensation solely for such services as he may render and recommendations he may make in the course of the project. The Engineer makes no warranty, either expressed or implied, as to his findings, recommenda- tions, or professional advice other than they were promul- gated after following a practice usual to the engineering profession. 8. Changes in Scope of Project. If conditions be- yond the control of the Engineer necessitate a change in scope-of the project after engineering and management work .under paragraph 1 above has commenced, the guaranteed maximum fee shall be adjusted as follows: (1) Increased or de- creased in proportion to the net change in the estimated cost of the project, and (2) increased -by the amount of charges for any work accomplished to the date of change in scope which cannot be incorporated into the changed project. 9. Suspension of Services or Termination of Agree- ment. The City, for any reason, may by written notice post- pone or suspend all or any part of the engineering services authorized under this agreement, or terminate the entire agreement. In sion or termination, Engineer shall by written notice may the event of such suspen- have thearight to expend 13. additional time to assemble the work in progress for the purpose of properly closing the job. Such additional time shall not exceed ten percent of the total time expended on the portion of the project affected by such notice or suspen- sion or termination before the receipt thereof. If suspension or.termination occurs, the guaran- teed maximum fee for PhasesA and B shall be eighty-five per- cent of the guaranteed maximum fee determined in accordance with paragraph'5 above and shall be computed on the basis of the Engineer's estimate of cost of the portion of the project thus suspended or terminated. In the event that suspension of services exceeds twelve months in duration, the Engineer may, by not less than thirty days' notice, terminate this agreement as it applies to the suspended portion of the project. .. 10. Status of Engineer. The Engineer will perform the services provided for herein in its own way as an inde- pendent contractor and in the pursuit of its independent calling, and not as an employee of the City; and it shall be under the control of the City only as to the result to be .. accomplished, and the personnel assigned to the project. The personnel assigned to the project by Engineer shall be those listed under Section 2 of the proposal dated March 3, 1975, for Engineering and Management Services, Sewerage Master Plan Study and Financial Plan and Rate Study,, City of Carlsbad by Brown and Caldwell, Consulting Engineers. 14. 11. Conformity to Legal Requirements. The Engineer shall cause all recommendations to conform to all applicable requirements of law, federal, state and local, to all re- quirements of all bodies formed under federal, state or local law whose approval must be obtained. 12. Ownership of Documents. Any plans, studies, sketches, drawings or specifications supplied, as herein required, are the property of the City. In the event this contract is terminated, any documents, plans, specifications and drawings shall be delivered forthwith to the City. ' 13. Hold Harmless Agreement. The City, its agents, officers and employees shall not be liable for any claims, liabilities, penalties, fines or for any damage to goods, properties or effects of any person whatever, or for per- sonal injuries to or death of them, or any of them, caused by or resulting from or claimed to have been caused by or resulting from any act or omission of Engineer, or its agents, employees or representatives; Engineer further agrees to indemnify and save free and harmless the City and its author- ized agents, officers and employees against any of the fore- going liabilities and claims therefor, and any cost and expense that is incurred by the City on account of any claim theref or. 14. Assignment of Contract. The Engineer shall not assign this contract or any part therebf or any monies due or.to become due thereunder without the prior written consent 15. of the City. 15. Subcontracting. If the Engineer shall subcon- tract any of the work to be performed under this contract by Engineer, the Engineer shall be fully responsible to the City ' for the acts and omissions of i$s subcontractor and of the persons either directly or indirectly employed by its sub- contractor, as it is for the acts and omissions of persons directly employed by it. Nothing contained in this contract shall create any contractual relationship between any sub- contractor of Engineer and the City. The Engineer shall bind every subcontractor and every subcontractor of a subcontract- or by the terms of this contract applicable to its work unless specifically noted to the contrary in the subcontract in question approved in writing by the City. 16. Prohibited Interest. No official of the City who is authorized in such capacity and on behalf of the City to negotiate, make, accept or approve, or to take part in negotiating, making, accepting or approviiig any architectural, engineering, inspection, construction, or material supply contract or any subcontract in connection with the construc- tion of the project, shall become directly or indirectly .interested personally in this contract or in any part thereof. No officer, employee, architect, attorney, engineer or in- spector of or for the City who is authorized in such capacity and on behalf of the City to exercise any executive, super- visory or other similar function: in connection with the 16. , performance of this contract shall become directly or in- directly interested personally in this contract or any part * thereof. 17. Verbal Agreement or Conversation. No verbal agreement or conversation with any officer, agent or employee of the City, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained, nor such verbal agreement or donversation entitle the Engineer to any addi- tional payment whatsoever under the terms of this contract. 18. Successors or Assigns. Subject to the provi- sions of paragraph 14 above,-all terms, conditions and pro- visions hereof shall inure to and shall bind each of the parties hereto, their and each of their respective heirs, executors, administrators, successors and assigns. 19. Application of ASCE Manual No. 45. Applicable provisions of American Society of Civil Engineers Manuals and Reports on Engineering Practice No. 45 shall apply to all matters not otherwise covered by this agreement. 20. Effective Date. This contract shall be effec- tive on and from the day and year first above written. IN WITNESS WHEREOF, the parties hereto have exe- cuted this agreement on the day and year first above 17. writ te'n . ATTEST : Margaret E. Adams City Clerk APPROVED AS TO FORM: CITY OF CARLSBAD, a Municipal Corporation of the State of California BY Robert C. Frazee, Mayor BROWN AND CALDWELL, a Corporation RV California Vincent F. Biondo City .Attorney 18.