Loading...
HomeMy WebLinkAboutRES.234.02-16-1987 BILL NO. 87-24 RESOLUTION N0. �� A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH BLACK & VEATCH, ENGINEERS-ARCHITECTS, FOR A UTILITIES FEASIBILITY STUDY BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI , AS FOLLOWS : SECTION 1 . The City Manager on behalf of the City of Cape Girardeau, Missouri , is hereby authorized to enter into a Contract with Black & Veatch, Engineers-Architects , for a utilities feasibility study. A copy of said Contract is attached to this Resolution and made a part hereof . PASSED AND ADOPTED THIS �� DAY OF � 198� • i� �� --- - �C � �f � �A. i�.,7 7 .�f -' ' `'� !'� - � rancis E. Rhodes , Mayor ATTEST: � //� S�GC_..f,�r�5.���'t.f7 Alvin M. Stoverink , City Clerk CONTRACT FOR ENGINEERING SERVICES THIS CONTRACT is made by and between the City of Cape Girardeau, Missouri , hereinafter called the City, and Black & Veatch, Engineers-Architects, hereinafter called the Engineer. SECTION I - SCOPE OF SERVICES The Citizens Committee established by the City Council desires to determine the options available to the City under the terms of the current franchise agreements for water, gas, and electric utilities in the City, scheduled for renewal April 1988, and/or the feasibility of the possible acquisition and operation of one or more of the utilities by the City. The City hereby engages the Engineer to perform engineering services in connection with the investigation to determine options available to the City under its current franchise agreements and to determine the feasi- bility of possible City acquired and operated utility system(s). The Engineer agrees to perform engineering services as directed by the Citizens Committee including preliminary investigations, limited inspection of utility property, engineering studies, and bonding feasibility. A detailed description of the services to be performed is listed in Appendix A. SECTION II - COMPENSATION For the services covered by this contract, the City agrees to pay the Engineer as set forth below. A. All services rendered by Black & Veatch personnel in con- junction with the proposed studies will be billed at payroll costs times a multiplier of 2.0. Payroll costs are defined as salaries plus direct payroll overheads of 35 percent. The maximum amount billed shall not exceed $16,900 without further authorization. 1 B. All direct expenses, including in part travel and subsis- ' tence away from the Kansas City office, long distance tele- phone, computer charges, and reproduction will be billed at out-of-pocket cost. Black & Veatch will render itemized monthly statements to the City for work performed and costs incurred during the preceding month. Monthly payments will be due within 30 days after the statement is received by the City. SECTION III - CITY' S RESPONSIBILITIES The City will furnish, as required for the work and not at the expense of the Engineer, the following items if not currently on file with the Engineer: A. All information obtained from Union Electric Company relevant to the studies; B. All maps, drawings, records, audits, annual reports, and other data that are available in the files of the City and which may be useful in the work involved under this con- tract; C. Access to public and private property, as necessary, when required in conduct of field investigations; and D. Assistance as may be required to gain access to Union Electic Company staff and facilities. SECTION IV - OTHER MATTERS It is mutually understood and agreed: A. That the Engineer shall not be liable for delays resulting from causes beyond the reasonable control of the Engineer; that the Engineer has made no warranties, expressed or implied, which are not expressly set forth in this contract, and that under no circumstances will the Engineer be Liable for indirect or consequential damages. 2 IN WITNESS WHEREOF, the parties have executed this contract on this day of 19_ CITY OF CAPE GIRARDEAU, MISSOURI By Gary A. Eide, City Manager Attest: BLACK � VEATCH, Engineers-Architects By Ronald D. Hardten, Partner 3 CITY OF CAPE GIRARDEAU, MISSOURI FRANCHISE REQUIREMENTS AND/OR ACQUISITIONS OF ELECTRIC, GAS, AND WATER UTILITIES APPENDIX A TO CONTRACT FOR ENGINEERING SERVICES DESCRIPTION OF SCOPE OF SERVICES A. Utility Acquisition Study 1. Make the necessary limited inspection of existing utility proper- ties and assess the condition thereof. 2. Discuss with Union Electric (UE) the operation and condition of the properties. 3. Meet with UE, or the Missouri Public Service Commission if UE is unavailable, to obtain pertinent operating and operating cost, sales, revenue, and proposed capital expenditure data. 4. Prepare preliminary estimate of probable cost of a capital improvement program for each utility. The estimates will include supply and interconnection facilities. 5. Determine probable purchase price of the individual utilities. The price would be based on book value and a market analysis of earnings value. 6. Estimate the bond issues size and related annual debt service for each utility necessary to acquire the utility, pay for necessary capital improvements and pay issuance costs. 7. Determine initial financial feasibility of acquiring each utility by comparing costs with revenues under existing rates. 8. Evaluate the effects on initial feasibility of utility acquisi- tion against other alternative acquisition prices, alternative means of financing capital improvements, and alternative sources of electric and gas supply, as appropriate. Alternative sources of electric supply will consider: - Partial requirements (base load) service from UE and peaking capacity owned by the City. - Limited market survey of full and partial requirements power suppliers in the region. 4 - Transmission facilities required for interconnection of the acquired system. Alternative sources of gas supply will consider: - A limited survey of suppliers in the region. � - Transmission service and/or interconnection facilities required for alternate service suppliers. 9. As an alternative to acquiring the entire electric system, a study will be made of the feasibility of acquiring the street lighting system only. 10. Identify sources of revenues to the City which would likely be affected by the acquisition of one or more of the utilities. These sources would include: franchise fees, property taxes, payroll taxes (if applicable), and school taxes. 11. Identify organizational impacts on the City in acquiring and operating one or more of the utilities. Management and operating support systems needed to operate the utilities will be identi- fied. B. Franchise Agreement Study The following elements are typical of those which will be evaluated for inclusion in a renewed franchise agreement. 1. Length of contract and notice of renewal period. 2. Specification of capital improvements to be made to the systems. 3. Assistance from UE with promotion of industrial and community development. 4. Enhanced coordination of the City' s sewer utility billing with UE' s water utility billing and customer records. 5. Franchise fee percentages. C. Presentation 1. Attend two interim meetings with the Citizens Committee to dis- cuss preliminary findings. 2. Preparation and mailing of 20 copies of preliminary and final reports or material for inclusion in Citizens Committee report. 3. Presentation of the final report, including findings and recom- mendations, to a meeting of the City Council. 5 D. Supplemental Services Any additional work requested by the City that is not included in one of the items listed in this Appendix A will be classified as supplemental services. Supplemental services shall include but are not limited to: 1. Additional meetings with the City Council during their delibera- tions of the Committee's report as well as meetings with the public or special boards. 2. Supplemental studies required to meet the requests of the City or other entities as directed by the City. 6