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HomeMy WebLinkAbout1990-04-17; Municipal Water District; 011; Proposal - Long-Range Operating PlanCMWD - AGENDA BILL 3#.-&---- TrrLE: TG. 4/17/90 PROPOSAL FROM HUGHES, HEISS & ASSOCIATES EPT. ADMIN TO DEVELOP LONG-RANGE OPERATING PLAN IECOMMENDED ACTION: Approve Resolution No.654 accepting the proposal of Hughes, Heiss and Associates to develop a long-range operating plan for the Carlsbad Municipal Water District. ITEM EXPLANATION In an effort to provide the most efficient water service possible for Carlsbad, a strategy has been developed that analyzes current operations from two different perspectives. The first step was authorization for an audit of the District's financial condition through January 1, 1990. As approved at the March 20, Board of Directors meeting, KPMG Peat Mar-wick is currently studying the following: 1) A financial audit of records for the period ending 12-31-89 2) A business review of operating practices, procedures and policies 3) A general review of the condition of the entity in- cluding investments, assets, contracts, budgets and insurance The second step is to develop a long-range operating plan, or '*game plan," to provide the citizens of Carlsbad with a unified water service operation that best meets their needs. In February, a Request for Proposal was developed and distributed to six consulting firms. Staff has just recently interviewed the two firms that responded, and based on their understanding of the project and relative experience, the firm of Hughes, Heiss & Associates is being recommended. A brief summary of the issues and products arising from this proposed study is attached as Exhibit C. FISCAL IMPACT The proposed operating plan will cost $20,000. Funding for this expense will be provided through an appropriation of $21,000 from the C.M.W.D. Unappropriated Reserves to the Special Studies Account. The appropriation of these funds will reduce the unappropriated reserve balance to $492,000. 4. Agenda Bill Cdl-( continued) A. Resolution No. 654 B. Agreement between C.M.W.D. and Hughes, Heiss & Assoicates C. Summary of Proposal RESOLUTION NO. 654 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT ACCEPTING THE PROPOSAL FROM HUGHES, HEISS & ASSOCIATES TO DEVELOP A LONG-RANGE OPERATING PLAN AND AUTHORIZING THE PRESIDENT TO EXECUTE THE AGREEMENT WHEREAS, the Carlsbad Municipal Water District has developed a request for proposal for the formation of a long-range operating plan to address the provision of water service within its service area: and WHEREAS, the firm of Hughes, Heiss and Associates is being recommended by staff to perform this study. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District as follows: 1. That the above recitation are true and correct. 2. That the proposal of Hughes Heiss & Associates is hereby accepted. 3. That the President is authorized to sign the agreement for services shown in Exhibit B. 4. that the amount of $21,000 is hereby appropriated to the Special Studies Account from the Unappropriated Oper- tional Reserve to support costs of these services. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad Municipal Water District held on the 17th' day of April r 1990, by the following vote, to wit: . . AYES: Board Members Lewis, Kulchin, Pettine, Mamaux and Larson N&S : None ABSENT: None C ATTEST: (SEAL) . . 4 PROFESSIONAL SERVICES AGREEMENT This Agreement is made and entered into this day of 1990, between the Carlsbad Municipal Water District, a body corporate and politic (hereinafter referred to as t'Districtvl), and Hughes, Heiss and Associates (hereinafter referred to as ttConsultanttt). A. Recitals (1) (2) (3) (4) District has heretofore issued its Request for Proposal pertaining to the performance of professional services with respect to developing an operating plan. Consultant has submitted its proposal for the performance of such services, and by this reference is made a part of this agreement. District desires to retain Consultant to perform professional services necessary to render advice and assistance to District in developing an operating plan. Consultant represents that it is qualified to perform such services and is willing to perform such professional services as hereinafter defined. NOW, THEREFORE, it is agreed by and between District and Consultant as follows: B. Aareement 1. Definitions: The following definitions shall apply to the following terms, except where the context of this Agreement otherwise requires: (a) (b) Proiect: As described in Request for Proposal, including, but not limited to, the preparation of surveys, reports, and documents, the presentation, both oral and written, of such documents to District as required and attendance at any and all work sessions, public hearings and other meetings conducted by District with respect to Project. Services : Such professional services as are necessary to be performed by Consultant in order to complete the Project in accordance with scope of work outlined in Request for Proposal. 2. Consultant agrees as follows: - _ (a) Consultant shall forthwith undertake and complete the project in accordance with Request for Proposal, and all in accordance with Federal, State, and District statutes, regulations, ordinances and guidelines, all to the reasonable satisfaction of the District. lb) Consultant shall supply copies of all reports, plans and documents (hereinafter collectively referred to as lldocumentsl*) including all supplemental technical documents, within the time specified. District may thereafter review and forward to Consultant comments regarding said documents and Consultant shall thereafter make such revisions to said documents as are deemed necessary. District shall receive revised documents in such form and in the quantities determined necessary by the District. The time limits set forth pursuant to this section may be extended upon written approval of District. (c) Consultant agrees that all services performed by Consultant shall be performed by individuals described in Consultant's Proposal, except upon the prior written approval of the District. Consultant shall, at Consultant's sole cost and expense, secure and hire such other persons as may, in the opinion of Consultant, be necessary to comply with the terms of this Agreement. Consultant further agrees that no subcontractor shall be retained by Consultant except upon the prior written approval of the District. (d) Consultant agrees to provide 10 copies of the final report plus a 'camera ready' copy. 3. District aorees as follows: (a) To pay Consultant a sum not to exceed a maximum of Twenty Thousand Dollars ($20,000.00) for the performance of the services required hereunder. This sum shall cover the cost of all staff time and all other direct or indirect costs or fees, including the work of employees, consultants and subcontractors to Consultant. Payment to Consultant shall be made in accordance with the schedule set forth below. 1 . (b) Payments to Consultant shll be made by District in accordance--with the invoices submitted by consultant, on a monthly basis, and such invoices shall be paid within thirty days after said invoices are received by District. In no event, however, will said invoices exceed Twenty Thousand Dollars ($20,000.00). 4. Termination: This Agreement may be terminated by District upon the giving of a written HNotice of Terminationtt to Consultant at least Fifteen (15) says prior to the date of termination specified in said Notice. In the event this Agreement is so terminated, Consultant shall be compensated at Consultant's applicable hourly rates, as set forth in Consultant's Proposal, on a pro rata basis with respect to the percentage of the Project completed as of the date of termination. In no event, however, shall Consultant receive more than the maximum specified in paragraph 3(a) above. Consultant shall provide to District any and all documents, data, studies, sumeys, and reports, whether in draft or final form, prepared by Consultant as of the date of termination. Consultant may not terminate this Agreement except for cause. 5. Notices and Desianated Renresentatives: Any and all notices, demands, invoices and written communications between the parties hereto shall be addressed as set forth in this paragraph 5. The below-named individuals, furthermore, shall be those persons primarily responsible for the performance by the parties under this Agreement: Carlsbad Municipal Water District 5950 El Camino Real Carlsbad, California 92008 John W. Heiss Principal Hughes, Heiss & Associates 35 South Rayond Avenue, Suite 220 Pasadena, California 91105 6. Insurance: Consultant shall neither commence work under this Agreement until it has obtained all insurance required hereunder nor shall Consultant allow any subcontractor to commence work on a subcontract until all insurance required of the subcontractor has been obtained. Consultant shall take out and maintain at all times during the term of this Agreement the following policies of insurance: , . . (4 Worker's Comnensation Insurance: Before beginning -- work, Consultant shall furnish to District a certificate of insurance as proof that it has taken out full worker's compensation insurance for all persons whom it may employ directly or through subcontractors in carrying out the work specified herein, in accordance with the laws of the State of California. (b) Public Liability and Pronertv Damaae: Throughout the term of this Agreement, at Consultant's sole cost and expense, Consultant shall keep, or cause to be kept, in full force and effect, for the mutual benefit of the District and Consultant, comprehensive, broad form, general public liability and automobile insurance against claims and liabilities for personal injury, death, or property damage arising from Consultant's activities, providing protection of at least One Million Dollars ($1,000,000.00) for bodily injury or death to any one person or for any one accident or occurrence and at least One Million Dollars ($1,000,000.00) for property damage. (c) General Insurance Requirements: All insurance required by express provision of this Agreement shall be carried only in responsible insurance companies licensed to do business in the State of California and policies required under paragraphs 6.(a) and (b) shall name as additional insureds District, its officials, officers, employees and agents. Consultant shall furnish District with certificate evidencing insurance. 7. Indenmificatioq: Consultant shall defend, indemnify and safe harmless District, its officials, officers, employees and agents from all liability from loss, damage or injury to persons or property, including the payment by Consultant of any and all legal costs and attorney's fees, in any manner arising out of or incidental to the performance by Consultant of this Agreement, including, but not limited to, all consequential damages, to the maximum extent permitted by law. 8. Assianment: No assignment of this Agreement or of any part or obligation of performance hereunder shall be made, either whole or in part, by Consultant without the prior written consent of District. - 1 . 9. 10. 11. Indenendent Contractor: The parties hereto agree that Consultant and its employees, officers, and agents are independent contractors under this Agreement and shall not be construed for any purpose to be employees of the District. Governina Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California. Entire Aareement: This Agreement supersedes any and all other agreements, either oral or written, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representation by any party which is not embodied herein nor any other agreement, statement, or promise not contained in this Agreement shall be valid and binding. Any modification of this Agreement shall be effective only if it is in writing, signed by all parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above: CONSULTANT DISTRICT ATTEST: Hughes, Heiss & Associates Summary of Our Proposal to Develop an Operating Plan for the Carlsbad Municipal Water District March 29, 1990 ’ . Study Issues and Products Project Tasks * Profile current operations and services and identify issues. Issues l How are all District staff currently utilized? l What interface between City/District operations? l Similarities and differences between District and City systems. Products l Detailed narrative and statistical profile of Drstnct and City operations and systems In the water service area. l Evaluation of staff attitudes. l Evaluate approaches of l Where can l Criteria for evaluating organizing water service economics/efficiencies be alternatives. operations, both now and in achieved? future years. l Short, medium, longer range l Operating barriers to alternatives. organizational adjustments? * ‘People’ concerns impacting change. l Impact on service levels and service costs. l Evaluation of each alternative- include subjective and quantitative impact. @ Recommend and develop l What level of organizational l Detailed short, medium, long operating plan. adjustment really makes sense? range operating plan. l How should adjustment be l Implementation plan. phased in over time? l How can barriers be overcome? l What cost and/or savings impact?