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HomeMy WebLinkAboutSCI Consulting Group; 2024-06-18; PSA24-3460ENVPSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 1 AGREEMENT FOR STORMWATER COST OF SERVICE STUDY SERVICES SCI CONSULTING GROUP THIS AGREEMENT is made and entered into as of the ______________ day of _________________________, 2024, by and between the City of Carlsbad, California, a municipal corporation (“City”) and SCI Consulting Group, a California corporation (“Contractor”). RECITALS A. City requires the professional services of a consultant that is experienced in stormwater cost of service studies. B. Contractor has the necessary experience in providing professional services and advice related to stormwater cost of service studies. C. Contractor has submitted a proposal to City under RFP24-3460ENV and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1.SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the “Services”) that are defined in attached Exhibit “A,” which is incorporated by this reference in accordance with this Agreement’s terms and conditions. 2.STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3.TERM The term of this Agreement will be effective for a period of one (1) year from the date first above written. The City Manager may amend the Agreement to extend it for four (4) additional one (1) year periods or parts thereof. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4.TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5.COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term shall not exceed ninety-nine thousand dollars ($99,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. If the City elects to extend the Agreement, the amount shall not exceed ninety-nine thousand dollars ($99,000) per Agreement year. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit “A.” Incremental payments, if applicable, should be made as outlined in attached Exhibit “A.” DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 18th June PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 2 6. CONSTRUCTION MANAGEMENT SOFTWARE Procore Project Management and Collaboration System. This project may utilize the Owner’s Procore (www.procore.com) online project management and document control platform. The intent of utilizing Procore is to reduce cost and schedule risk, improve quality and safety, and maintain a healthy team dynamic by improving information flow, reducing non-productive activities, reducing rework and decreasing turnaround times. The Contractor is required to create a free web-based Procore user account(s) and utilize web-based training / tutorials (as needed) to become familiar with the system. Unless the Engineer approves otherwise, the Contractor shall process all project documents through Procore because this platform will be used to submit, track, distribute and collaborate on project. If unfamiliar or not otherwise trained with Procore, Contractor and applicable team members shall complete a free training certification course located at http://learn.procore.com/procore-certification- subcontractor. The Contractor is responsible for attaining their own Procore support, as needed, either through the online training or reaching out to the Procore support team. It will be the responsibility of the Contractor to regularly check Procore and review updated documents as they are added. There will be no cost to the Contractor for use of Procore. It is recommended that the Contractor provide mobile access for Windows, iOS located at https://apps.apple.com/us/app/procore-construction-management/id374930542 or Android devices located at https://play.google.com/store/apps/details?id=com.procore.activities with the Procore App installed to at least one on-site individual to provide real-time access to current posted drawings, specifications, RFIs, submittals, schedules, change orders, project documents, as well as any deficient observations or punch list items. Providing mobile access will improve communication, efficiency, and productivity for all parties. The use of Procore for project management does not relieve the contractor of any other requirements as may be specified in the contract documents. 7. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City’s election, City may deduct the indemnification amount from any balance owing to Contractor. 8. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 3 every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 9. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 10. INDEMNIFICATION Contractor agrees to defend (with counsel approved by the City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney’s fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code Section 2782.8, which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed the Contractor’s proportionate percentage of fault. The parties expressly agree that any payment, attorney’s fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City’s self-administered workers’ compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 11. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than “A-:VII”; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 11.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to the City as an additional insured. DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 4 11.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 11.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 11.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 11.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 11.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 11.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City. 11.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 11.2.3 If Contractor maintains higher limits than the minimums shown above, the City requires and will be entitled to coverage for the higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to the City. 11.2.4 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 11.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 11.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 11.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 12. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 5 13. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement. 14. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. 15. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 16. NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are: For City For Contractor Name Tim Murphy Name Edric Kwan Title Senior Program Manager Title Senior Vice President Department Public Works Address 4745 Mangels Boulevard City of Carlsbad Fairfield, CA 94534 Address 1635 Faraday Avenue Phone No. 707-430-4301 x119 Carlsbad, CA 92008 Email edric.kwan@sci-cg.com Phone No. 442-339-2587 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. /// /// /// /// DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 6 17. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests as required in the City of Carlsbad Conflict of Interest Code. Yes ☐ No ☒ If yes, list the contact information below for all individuals required to file: Name Email Phone Number 18. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 19. CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets. 20. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 21. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 7 Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 22. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 23. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 24. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 8 25. JURISDICTION AND VENUE This Agreement shall be interpreted in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 26. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 27. THIRD PARTY RIGHTS Nothing in this Agreement should be construed to give any rights or benefits to any party other than the City and Contractor. 28. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. This Agreement may be executed in counterparts. 29. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. [signatures on the following page] DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 PSA24-3460ENV City Attorney Approved Version 5/22/2024 Page 9 Executed by Contractor this___________ day of _______________________, 2024. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California SCI CONSULTING GROUP, a California corporation By: By: (sign here) Geoff Patnoe, Assistant City Manager, as authorized by the City Manager John W. Bliss, Vice President and Secretary (print name/title) ATTEST: By: SHERRY FREISINGER, City Clerk (sign here) By: Deputy City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney By: _____________________________ Assistant City Attorney DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 17 June Jd.w, (}J. tliss SCIConsultingGroup | 0 2024 John Bliss, President SCI Consulting Group 6/4/2024 City of Carlsbad Stormwater Cost of Service Study Submitted with: PSA24-3460ENV Exhibit "A" DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 SCIConsultingGroup Public Finance Consulting Services LARRY WALKER ASSOCIATES sc, nee policy solutions Proposal for Stormwater Cost of Service Study, May 8, 2024 SCIConsultingGroup | 7 WORK PLAN AND PROJECT APPROACH The scope of services described below are specific tasks the SCI Team will perform to conduct a comprehensive stormwater fee study. Task 1: Project Management and Coordination Lead: SCI As the prime consultant, SCI will oversee comprehensive project management, encompassing internal staff coordination, invoicing, and other support activities. Monthly budget and status updates will be provided to the City. These duties are shown separately in our cost proposal; rather, they are integrated into the scope of each functional task. SCI will commence the project with a kick-off meeting, setting a comprehensive agenda to ensure productivity and efficiency. This meeting will review the scope, discuss strategic objectives, and identify key decision points and milestones. Additionally, SCI will leverage well-established approaches and processes to control project costs, schedules, and quality assurance/quality control tailored specifically for this project. Scheduled periodic project virtual meetings with relevant City staff will be facilitated by SCI throughout the project lifecycle. Each session will be preceded by an agenda outlining the meeting's objectives and followed up with action notes. Monthly updates will be provided in sync with the invoicing cycle, offering a detailed account of work completed, task budget status for each billing period, and schedule updates. Task 2: Data Collection and Document Review Co-Leads: SCI and LWA Each city presents a unique starting point for the SCI Team, especially in stormwater projects where financial systems vary. While the Drainage Master Plan, approved by Council in 2015, offers a comprehensive list of capital needs, input from City staff is crucial. We'll outline data requirements, interview key stakeholders, and ensure alignment with City leadership's strategic goals by cataloging and vetting previous documents. During these interviews, SCI will collect information regarding current and future requirements for the operations and maintenance of the storm drain system and clean water programs. These data items will support Task 3 and Task 4 work, including budget information, levels of service, program elements, and needs. Task 2 Deliverables Information request list (PDF) Project kick-off meeting (Virtual) A summary of essential discussion items, decisions, and findings Follow-up interviews with key staff in groups or individually Task 1 Deliverables Meeting agendas and action item summaries Monthly Status Reports, invoices, and schedule updates PSA24-3460ENV Exhibit "A" (Cont.) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 Proposal for Stormwater Cost of Service Study, May 8, 2024 SCIConsultingGroup | 8 Task 3: Revenue Requirement Analysis Co-Leads: SCI and LWA SCI and LWA boast extensive experience in estimating both current and future stormwater program costs, having completed similar analyses for numerous municipal clients. Stormwater rate-setting stands out due to its requirement for voter approval and lack of a five-year rate limitation. Thus, establishing a durable initial rate structure is crucial, as adjustments in subsequent years are limited to prescribed inflationary indices. To meet this challenge, SCI will employ its long-range, 30-year financial forecasting tool, which will be informed by data collected and ongoing collaboration with City staff. This task involves iterative processes, with City staff continuously engaged in forecasting costs across three key areas: operations and maintenance, NPDES Permit compliance, and capital needs. Additionally, various alternative funding mechanisms will be evaluated, including special taxes, user taxes, and regulatory fees, considering attributes like political viability, legal rigor, legislative factors, and compatibility with existing mechanisms. The work in this task will be iterative insomuch as City staff will be interviewed and continually involved in working through and coordinating the expenditure forecasting of costs in the three main areas of concern: operations and maintenance, NPDES Permit compliance, and capital needs. Of particular interest is the implications of Senate Bill 231 (Hertzberg) on storm drainage funding. On its face, SB 231 provides a rate- setting path that avoids the voter-approval requirement – making it identical to water and sewer rates. However, questions surrounding constitutionality and separation of powers surround this important legislation. The authors of Proposition 218, Howard Jarvis Taxpayers Association, have vowed to bring suit against any municipality that proceeds along the SB 231 route.1 As an active member of Senator Hertzberg’s SB 231 Working Group, SCI is currently not encouraging cities to pursue SB 231 unless they have unique service characteristics that link stormwater to other property-related services (e.g., water, sewer, and solid waste) and have the appetite to be a test case along with the time and resources that would involve. This task will provide the City with all options, including balloted (fees or parcel taxes) and several non-balloted options, such as regulatory fees, realignments, and grant opportunities. This effort will enable the City to answer the following question: “Have you done all you can before asking me for a new fee?” The results of this analysis will provide the City with many options to consider before proceeding to a costly, risky, and time-consuming ballot measure. 1 SCI is aware of at least one warning letter received by a small city along the Central Coast warning of that very outcome. That city subsequently ceased their effort. Task 3 Deliverables Summary of costs and revenue requirements (Excel) Slide deck of financial findings, funding options, and initial recommendations (Ppt) Staff interviews, as needed (Virtual) Workshops with project staff to vet progress and scenarios (Virtual) Presentation to senior staff PSA24-3460ENV Exhibit "A" (Cont.) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 Proposal for Stormwater Cost of Service Study, May 8, 2024 SCIConsultingGroup | 9 Task 4: Stormwater Cost of Service Report Lead: SCI Based on the insights gathered from Tasks 2 and 3, including staff interviews, the SCI Team will craft a comprehensive Proposition 218-compliant property-related fee engineering report ("Fee Report") for the proposed programs and improvements. This initial phase will explore four rate structure options, covering all revenue, cost, reserve, debt service considerations, and capital improvement scenarios. The Report will delineate programs and improvements from earlier tasks, justify fee apportionment (typically based on impervious area), and calculate specific fees for each parcel in the City. Additionally, the Fee Report may incorporate rate credit provisions to encourage on-site runoff abatement, benefiting large impervious sites and newly developed areas. Examples from recent reports for Cupertino, Alameda, and Davis will inform this aspect. Legal considerations like fee methodology and appeal processes will also be addressed, leveraging data from previous tasks like parcel data and community priorities. A key aspect will be auditing parcel attributes, especially impervious surface coverage, involving thorough data examination, aerial photo analysis, and potential site visits. The resultant data will underpin the nexus analysis, which correlates parcel attributes with fee structure, employing statistical methods and robust rationale. The Fee Report's development will align with early stakeholder outreach and iterative review sessions with the City, possibly incorporating external stakeholders for refinement. Following City staff and legal counsel review, a Draft Fee Report will be prepared for consolidation, culminating in a Final Fee Report compliant with Proposition 218 and relevant regulations. Edric Kwan, PE, a registered Civil Engineer, will oversee its preparation, covering fee structure, future needs, cost estimates, apportionment rationale, parcel-specific fees, maps, and other pertinent elements. Task 5: Additional Services As Needed Lead: SCI In the course of completing the cost of study services, additional tasks that are out of scope may be requested by the City. In these situations, SCI will develop a scope, cost proposal, and potential adjustment in the project timeline for the City to authorize through Task 5. Task 4 Deliverables Preliminary Rate Scenarios (Ppt) Workshops with Project Staff (Virtual) Administrative Draft Report (PDF) Internal/External Outreach Slide Deck (PPT) Public Review Draft Report (PDF) Project Meeting (Virtual) City Council Study Session (Virtual) Final Report (PDF) Project Meeting (Virtual) PSA24-3460ENV Exhibit "A" (Cont.) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 Proposal for Stormwater Cost of Service Study, May 8, 2024 SCIConsultingGroup | 10 SCHEDULE Task 1 Project Management / Coordination2 2 Data Collection / Document Review 3 Revenue Requirement Analysis 4 Stormwater Cost of Service Report Legend: Task Work Council Jun 24 Nov 24 Dec 24 City of Carlsbad Stormwater Cost of Service Study Tentative Timeline Jan 25 Feb 25Oct 24Sep 24Jul 24 Aug 24 PSA24-3460ENV Exhibit "A" (Cont.) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Proposal for Stormwater Cost of Service Study, May 8, 2024 SCIConsultingGroup | 11 PROJECT HOURS The project hours below are based on our understanding of the City’s needs and the level of effort we expect is necessary to complete the Work Plan successfully. Jo h n B l i s s Ed r i c K w a n Ch r i s C o u l t e r Ka r e n A s h b y Pa u l H a r t m a n Ai r y K r i c h - Br i n t o n Pr e s i d e n t Se n i o r V P - En g i n e e r Se n i o r Co n s u l t a n t Vi c e Pr e s i d e n t As s o c i a t e Sc i e n t i s t Pr o j e c t En g i n e e r I I Total Hours 2 34 8 6 6 2 58 Task 2: Data Collection / Document Review 2 14 14 16 6 4 56 Task 3: Revenue Requirement Analysis 2 18 22 20 10 8 80 4 28 34 20 10 8 104 Task 5:Additional Services As Needed TBD SCI Consulting Group -- Larry Walker Associates City of Carlsbad Stormwater Cost of Service Study HoursWork Plan Classification: LWA Task 1: Project Management / Coordination Task 4: Stormwater Cost of Service Report Assigned Staff: Firm:SCI PSA24-3460ENV Exhibit "A" (Cont.) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 Page 1 of 2 Tuesday, June 4, 2024 Submitted via e-mail https://vendors.planetbids.com/portal/27970/bo/bo-detail/116221 Janean Hawney, Contract Administrator City of Carlsbad, Public Works Contract Administration 1635 Faraday Avenue Carlsbad, CA 92008 Re: FEE PROPOSAL for a Stormwater Cost of Service Study and Related Professional Consulting Services for the City of Carlsbad Dear Ms. Hawney: In compliance with the City’s RFP, our fee proposal for a Stormwater Cost of Service Study and Related Professional Consulting Services is provided herein. Our professional fees are based on our understanding of the City’s needs and the level of effort we expect is necessary to complete the Work Plan successfully. Please let me know if you have any questions or require additional information regarding this fee proposal. Sincerely, John W. Bliss, P.E., President SCI Consulting Group cc: Edric Kwan, SCI Consulting Group Chris Coulter, SCI Consulting Group Karen Ashby, LWA Paul Hartman, LWA Airy Kritch-Brinton, LWA PSA24-3460ENV Exhibit "A" (Cont.)DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 SCIConsultingGroup Public Finance Consulting Services City of Carlsbad June 4, 2024 Page 2 of 2 Page 2 of 2 The Work Plan envisions virtual meetings. As necessary and at the discretion of the City, SCI will attend in-person meetings at our prevailing hourly billing rates, with travel time at 75%. Customary incidental expenses, including travel, lodging, printing, postage, data, or other out-of-pocket costs, shall be billed at actual cost plus 10% not to exceed $3,000 without prior authorization from the Department. Mileage expenses shall be billed at the IRS-approved rate. After completing each task, SCI shall submit an invoice for the work performed. Payments shall be due and payable upon submitting an invoice for each completed task. Jo h n B l i s s Ed r i c K w a n Ch r i s C o u l t e r Ka r e n A s h b y Pa u l H a r t m a n Ai r y K r i c h - Br i n t o n Pr e s i d e n t Se n i o r V P - En g i n e e r Se n i o r Co n s u l t a n t Vi c e Pr e s i d e n t As s o c i a t e Sc i e n t i s t Pr o j e c t En g i n e e r I I $306 $287 $217 $332 $315 $224 Subcontractor Markup:10% 10% 10% Total Hours Total Costs 2 34 8 6 6 2 58 $16,900 Task 2: Data Collection / Document Review 2 14 14 16 6 4 56 $16,600 Task 3: Revenue Requirement Analysis 2 18 22 20 10 8 80 $23,300 4 28 34 20 10 8 104 $29,400 $9,900 10 94 78 62 32 22 298 $96,000 $96,000 Cost Total Costs Incidentals $3,000 $3,000 $99,000TOTAL PROJECT COST: Total Labor Cost: Direct Costs: Travel, data and other items (Reimbursable) TOTAL DIRECT HOURS: Direct Costs Hours Task 1: Project Management / Coordination Task 4: Stormwater Cost of Service Report Stormwater Cost of Service Study Task 5: Additional Services As Needed SCI Consulting Group -- Larry Walker Associates City of Carlsbad Assigned Staff: Firm:SCI LWA Classification: Hourly Billing Rate Work Plan PSA24-3460ENV Exhibit "A" (Cont.)DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 I I ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED? INSR ADDL SUBRLTRINSD WVD PRODUCER CONTACTNAME: FAXPHONE(A/C, No):(A/C, No, Ext): E-MAILADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY) (MM/DD/YYYY) AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE EACH OCCURRENCE $ DAMAGE TO RENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER:GENERAL AGGREGATE $ PRO-POLICY LOC PRODUCTS - COMP/OP AGGJECT OTHER:$ COMBINED SINGLE LIMIT $(Ea accident) ANY AUTO BODILY INJURY (Per person) $ OWNED SCHEDULED BODILY INJURY (Per accident) $AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $AUTOS ONLY AUTOS ONLY (Per accident) $ OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $ DED RETENTION $ PER OTH-STATUTE ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC # COMMERCIAL GENERAL LIABILITY Y / N N / A (Mandatory in NH) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03) CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) $ $ $ $ $ The ACORD name and logo are registered marks of ACORD 6/13/2024 License # 0L72977 (925) 482-1000 (925) 482-1001 SCI Consulting Group 4745 Mangels Boulevard Fairfield, CA 94534-4319 10833 A 2,000,000 57SBARH8313 4/20/2024 4/20/2025 1,000,000 10,000 2,000,000 4,000,000 4,000,000 2,000,000A 57SBARH8313 4/20/2024 4/20/2025 1,000,000A 57SBARH8313 4/20/2024 4/20/2025 1,000,000 B MWC000353314 4/20/2024 4/20/2025 1,000,000 1,000,000 1,000,000 C Service & Technical VNPL014820 12/17/2023 Each Claim 2,000,000 C Prof Liab/Claims Mad VNPL014820 12/17/2023 12/17/2024 Aggregate 4,000,000 Service & Technical Professional Liability Deductible: $25,000 City of Carlsbad/CMWD is included as additional insured per policy form SS0008 0405 attached. Primary wording & Waiver of Subrogation applies in regards to the General Liability per policy form SS0008 0405 attached. Written Contract Required. 30 Days Notice of Cancellation, Except 10 Days for Non Payment. City of Carlsbad/CMWD c/o EXIGIS Insurance Compliance Services P.O. Box 947 Murrieta, CA 92564 SCICONS-01 KALANA Legacy Risk & Insurance Services 1850 Mt. Diablo Blvd., Suite 400 Walnut Creek, CA 94596 certificates@legacyrisk.net Sentinel Insurance Company Ltd Markel Insurance Company Gemini Insurance Company X 12/17/2024 X X X X X X X DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 ACORD" I ~ I ~ □ □ ~ ~ ~ □ □ ~ ~ ~ ~ ~ ~ ~ ~ H I I I I I □ ~~ I 4#"3) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 4#"3) DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 ~/~t:SAt-<Ht5JlJ BUSINESS LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the stock insurance company member of The Hartford providing this insurance. The word "insured" means any person or organization qualifying as such under Section C. -Who Is An Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. -Liability And Medical Expenses Definitions. A. COVERAGES 1. BUSINESS LIABILITY COVERAGE (BODILY INJURY, PROPERTY DAMAGE, PERSONAL AND ADVERTISING INJURY) Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury", "property damage" or "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury", "property damage" or "personal and advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in Section D. - Liability And Medical Expenses Limits Of Insurance; and (2) Our right and duty to defend ends when we have used up the applicable limit of insurance in the payment of judgments, settlements or medical expenses to which this insurance applies. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Coverage Extension -Supplementary Payments. b. This insurance applies: (1 ) To "bodily injury" and "property damage" only if: Form SS 00 08 04 05 (a) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; (b) The "bodily injury" or "property damage" occurs during the policy period; and (c) Prior to the policy period, no insured listed under Paragraph 1. of Section C. -Who Is An Insured and no "employee" authorized by you to give or receive notice of an "occurrence" or claim, knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed insured or authorized "employee" knew, prior to the policy period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" during or after the policy period will be deemed to have been known prior to the policy period. (2) To "personal and advertising injury" caused by an offense arising out of your business, but only if the offense was committed in the "coverage territory" during the policy period. c. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any insured listed under Paragraph 1. of Section C. -Who Is An Insured or any "employee" authorized by you to give or receive notice of an "occurrence" or claim: (1) Reports all, or any part, of the "bodily injury" or "property damage" to us or any other insurer; Page 1 of 24 © 2005, The Hartford DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 %9DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06 (Ed. 04-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforceour right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 5 % of the California workers’ compensation premium otherwise due on such remuneration. Work performed by SCI CONSULTING GROUP (A CORP.) at: 4745 Mangels BlvdFairfield , CA 94534-4175 Schedule $0.00 Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver. This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 04/20/2024 Policy No. MWC0003533-14 Endorsement No. Insured: SCI CONSULTING GROUP (A CORP.)Premium (See Attached) Insurance Company: Markel Insurance Company Countersigned by_____________________________ WC040306 (Ed. 04-84) © 1998 by the Workers’ Compensation Insurance Rating Bureau of California. All rights reserved. From the WCIRB’s California Workers’ Compensation Insurance Forms Manual © 2001 20 of 38 DocuSign Envelope ID: DA11271C-547D-4064-B387-28E9B47B1502