HomeMy WebLinkAboutresolution.council.081-22EXHIBIT B
RESOLUTION #081
(Series of 2022)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT
BETWEEN RAFTELIS FINANCIAL CONSULTANTS, INC. (DBA RAFTELIS) AND THE CITY OF ASPEN FOR
PROFESSIONAL SERVICES, AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF
OF THE CITY OF ASPEN, COLORADO
WHEREAS, there has been submitted to the City Council a not -to -exceed contract between the City of
Aspen and Raftelis Financial Consultants, Inc., which is attached hereto as Attachment A in the amount
of $153,790 for professional services and fees associated with the Utility Water and Electric Rate Study
and Plan;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
That the City Council of the City of Aspen hereby approves the contract between the City and Raftelis
Financial Consultants, Inc., a copy of which is incorporated herein, for $153,790 and hereby does
authorize the City Manager to execute said agreement on behalf of the City of Aspen
INTRODUCED AND READ AND ADOPTED BY THE City Council of the City of Aspen on the
12th day of July 2022.
Torre, Mayor
I, Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is a true and
accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting
held, July 12, 2022.
Nicole Henning, City Clerk
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CITY OF ASPEN STANDARD FORM OF AGREEMENT CITY OF ASPEN
PROFESSIONAL SERVICES
City of Aspen Contract No.:2022-063
AGREEMENT made this 12 day of July, in the year 2022
BETWEEN the City:
The City of Aspen
c/o Tyler Christoff, Utilities Director
500 Doolittle Drive
Aspen, Colorado 81611
Phone: (970) 920-5118
And the Professional:
Raftelis Financial Consultants, Inc.
c/o Todd Christiano
5619 DTC Parkway, Suite 850
Greenwood Village, CO 80111
Phone: 303-916-3151
For the Following Project:
Water and Electric Rate Study and Plan
Contract Amount:
Total: $153,790
If this Agreement requires the City to pay
an amount of money in excess of
$50,000.00 it shall not be deemed valid
until it has been approved by the City
Council of the City of Aspen.
Exhibits appended and made a part of this Agreement:
Exhibit A: Scope of Work.
Exhibit B: Fee Schedule.
City Council Approval:
Date: 07/12/2022
Resolution No.: 081 of 2022
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The City and Professional agree as set forth below.
1. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as
set forth at Exhibit A attached hereto and by this reference incorporated herein.
2. CgMletion. Professional shall commence Work immediately upon receipt of a written Notice to Proceed from
the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and
care and the orderly progress of the Work in a timely manner. The parties anticipate that all Work pursuant to this
Agreement shall be completed no later than October 31, 2023. Upon request of the City, Professional shall submit,
for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required
as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer
for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This
schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by the Professional.
3. Payment. In consideration of the work performed, City shall pay Professional on a time and expense basis
for all work performed. The hourly rates for work performed by Professional shall not exceed those hourly rates set
forth at Exhibit B appended hereto. Except as otherwise mutually agreed to by the parties the payments made to
Professional shall not initially exceed the amount set forth above. Professional shall submit, in timely fashion,
invoices for work performed. The City shall review such invoices and, if they are considered incorrect or untimely,
the City shall review the matter with Professional within ten days from receipt of the Professional's bill.
4. Non -Assignability. Both parties recognize that this Agreement is one for personal services and cannot be
transferred, assigned, or sublet by either party without prior written consent of the other. Sub -Contracting, if
authorized, shall not relieve the Professional of any of the responsibilities or obligations under this Agreement.
Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any
subcontractors' officers, agents and employees, each of whom shall, for this purpose be deemed to be an agent or
employee of the Professional to the extent of the subcontract. The City shall not be obligated to pay or be liable for
payment of any sums due which may be due to any sub -contractor.
5. Termination of Procurement. The sale contemplated by this Agreement may be canceled by the City
prior to acceptance by the City whenever for any reason and in its sole discretion the City shall determine that
such cancellation is in its best interests and convenience.
6. Termination of Professional Services. The Professional or the City may terminate the Professional Services
component of this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the
other party, specifying the effective date of the termination. No fees shall be earned after the effective date of the
termination. Upon any termination, all finished or unfinished documents, data, studies, surveys, drawings, maps,
models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become
the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for
damages sustained by the City by virtue of any breach of this Agreement by the Professional, and the City may
withhold any payments to the Professional for the purposes of set-off until such time as the exact amount of damages
due the City from the Professional may be determined.
7. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing
contained in this agreement shall result in, or be construed as establishing an employment relationship. Professional
shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said
services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the
employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner
and means of conducting the work are under the sole control of Professional. None of the benefits provided by City
to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are
available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely
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responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the
performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and
shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required
under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's
employees engaged in the performance of the services agreed to herein.
8. Indemnification. Professional agrees to indemnify and hold harmless the City, its officers, employees, from
and against all liability, claims, and demands, on account of injury, loss, or damage, including claims arising from
bodily injury, personal injury, sickness, disease, death, property loss or damage, arising from Professional's
performance of this contract, to the extent and for an amount represented by the degree or percentage such injury,
loss, or damage is caused in whole or in part by, or is claimed to be caused in whole or in part by, the wrongful act,
omission, error, professional error, mistake, negligence, or other fault of the Professional, any subcontractor of the
Professional, or any officer, employee, representative, or agent of the Professional or of any subcontractor of the
Professional, or which arises out of any workmen's compensation claim of any employee of the Professional or of
any employee of any subcontractor of the Professional. The Professional agrees to investigate, handle, respond to,
and to provide defense for and defend against, any such liability, claims or demands at the sole expense of the
Professional, If it is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or
damage was caused in whole or in part by the act, omission, or other fault of the City, its officers, or its employees,
the City shall reimburse the Professional for the portion of the judgment and expenses attributable to such act,
omission, or other fault of the City, its officers, or employees.
9. Professional's Insurance.
(a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance
sufficient to insure against all. liability, claims, demands, and other obligations assumed by the Professional
pursuant to Section 8 above. Such insurance shall be in addition to any other insurance requirements imposed
by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other
obligations assumed pursuant to Section 8 above by reason of its failure to procure or maintain insurance, or
by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types.
(b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure
and maintain, the minimum insurance coverages listed below. Such coverages shall be procured and
maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained
to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section
8 above. In the case of any claims -made policy, the necessary retroactive dates and extended reporting periods
shall be procured to maintain such continuous coverage.
(i) Worker's Compensation insurance to cover obligations imposed by applicable laws for any
employee engaged in the performance of work under this contract, and Employers' Liability insurance
with minimum limits of ONE MILLION DOLLARS ($1,000,000.00) for each accident, ONE
MILLION DOLLARS ($1,000,000.00) disease - policy limit, and ONE MILLION DOLLARS
($1,000,000.00) disease - each employee. Evidence of qualified self -insured status may be substituted
for the Worker's Compensation requirements of this paragraph.
(ii) Commercial General Liability insurance with minimum combined single limits of TWO
MILLION DOLLARS ($2,000,000.00) each occurrence and THREE MILLION DOLLARS
($3,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy
shall include coverage for bodily injury, broad form property damage (including completed
operations), personal injury (including coverage for contractual and employee acts), blanket
contractual, independent contractors, products, and completed operations. The policy shall include
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coverage for explosion, collapse, and underground hazards. The policy shall contain a severability of
interests provision.
(iii) Comprehensive Automobile Liability insurance with minimum combined single limits for
bodily injury and property damage of not less than ONE MILLION DOLLARS ($1, 000, 000. 00) each
occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate with respect to each
Professional's owned, hired and non -owned vehicles assigned to or used in performance of the Scope
of Work. The policy shall contain a severability of interests provision. If the Professional has no
owned automobiles, the requirements of this Section shall be met by each employee of the
Professional providing services to the City under this contract.
(iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS
($1,000,000) each claim and TWO MILLION DOLLARS ($2,000,000) aggregate.
(c) The policy or policies required above shall be endorsed to include the City and the City's officers and
employees as additional insureds. Every policy required above shall be primary insurance, and any insurance
carried by the City, its officers or employees, or carried by or provided through any insurance pool of the
City, shall be excess and not contributory insurance to that provided by Professional. No additional insured
endorsement to the policy required above shall contain any exclusion for bodily injury or property damage
arising from completed operations. The Professional shall be solely responsible for any deductible losses
under any policy required above.
(d) The certificate of insurance provided to the City shall be completed by the Professional's insurance agent
as evidence that policies providing the required coverages, conditions, and minimum limits are in full force
and effect, and shall be reviewed and approved by the City prior to commencement of the contract. No other
form of certificate shall be used. The certificate shall identify this contract and shall provide that the coverages
afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30)
days prior written notice has been given to the City.
(e) Failure on the part of the Professional to procure or maintain policies providing the required coverages,
conditions, and minimum limits shall constitute a material breach of contract upon which City may
immediately terminate this contract, or at its discretion City may procure or renew any such policy or any
extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies
so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the
premiums against monies due to Professional from City.
(f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto.
(g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by
any provision of this contract, the monetary limitations (presently $350,000.00 per person and $990,000 per
occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental
Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to
City, its officers, or its employees.
10. Citys 11151Iratice. The parties hereto understand that the City is a member of the Colorado Intergovernmental
Risk Sharing Agency (CIRSA) and as such participates in [tie CIRSA Property/Casualty Pool. Copies of the CIRSA
policies and manual are kept at the City of Aspen Risk Management Department and are available to Professional
for inspection during normal business hours. City makes no representations whatsoever with respect to specific
coverages offered by CIRSA. City shall provide Professional reasonable notice of any changes in its membership or
participation in CIRSA.
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11. Completeness ofA ement. It is expressly agreed that this agreement contains the entire undertaking of the
parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties
or promises pertaining to the project matter thereof not expressly incorporated in this writing.
12. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return
receipt requested to the respective persons and/or addresses listed above.
13. Non -Discrimination. No discrimination because ofrace, color, creed, sex, marital status, affectional or sexual
orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of
persons to perform services under this contract. Professional agrees to meet all of the requirements of City's
municipal code, Section 15.04.570, pertaining to non-discrimination in employment.
14. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of
any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be
waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever
shall not constitute a waiver of any term, covenant, or condition to be performed by Professional to which the same
may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be
entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or
indulgence.
15. Execution of Agreement byCity. This Agreement shall be binding upon all parties hereto and their respective
heirs, executors, administrators, successors, and assigns. Notwithstanding anything to the contrary contained herein,
this Agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly
authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing
the Mayor (or a duly authorized official in his absence) to execute the same.
16. Worker Without Authorization prohibited — CRS 8-17.5 -101 & 24-76.5- 101
Purpose. During the 2021 Colorado legislative session, the legislature passed House Bill 21-1075 that amended
current CRS §8-17.5-102 (1), (2)(a), (2)(b) introductory portion, and (2)(b)(III) as it relates to the employment
of and contracting with a "worker without authorization" which is defined as an individual who is unable to
provide evidence that the individual is authorized by the federal government to work in the United States. As
amended, the current law prohibits all state agencies and political subdivisions, including the Owner, from
knowingly hiring a worker without authorization to perform work under a contract, or to knowingly contract
with a Consultant who knowingly hires with a worker without authorization to perform work under the contract.
The law also requires that all contracts for services include certain specific language as set forth in the statutes.
The following terms and conditions have been designed to comply with the requirements of this new law.
Definitions. The following terms are defined by this reference are incorporated herein and in any contract for
services entered into with the Owner.
1. "E-verify program" means the electronic employment verification program created in Public Law 208, 104th
Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, that is jointly
administered by the United States Department of Homeland Security and the social security Administration, or
its successor program.
2. "Department program" means the employment verification program established pursuant to Section 8-17.5-
102(5)(c).
3. "Public Contract for Services" means this Agreement.
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4. "Services" means the furnishing of labor, time, or effort by a Consultant or a subconsultant not involving the
delivery of a specific end product other than reports that are merely incidental to the required performance.
5. "Worker without authorization" means an individual who is unable to provide evidence that the individual is
authorized by the federal government to work in the United States
By signing this document, Consultant certifies and represents that at this time:
1. Consultant shall confirm the employment eligibility of all employees who are newly hired for employment to
perform work under the public contract for services; and
2. Consultant has participated or attempted to participate in either the e-verify program or the department
program in order to verify that new employees are not workers without authorization.
Consultant hereby confirms that:
1. Consultant shall not knowingly employ or contract with a worker without authorization to perform work
under the Public Contract for Services.
2. Consultant shall not enter into a contract with a subconsultant that fails to certify to the Consultant that the
subconsultant shall not knowingly employ or contract with a worker without authorization to perform work
under the Public Contract for Services.
3. Consultant has confirmed the employment eligibility of all employees who are newly hired for employment
to perform work under the public contract for services through participation in either the e-verify program or the
department program.
4. Consultant shall not use the either the e-verify program or the department program procedures to undertake
pre -employment screening of job applicants while the Public Contract for Services is being performed.
If Consultant obtains actual knowledge that a subconsultant performing work under the Public Contract for
Services knowingly employs or contracts with a worker without authorization, Consultant shall:
1. Notify such subconsultant and the Owner within three days that Consultant has actual knowledge that the
subconsultant is employing or subcontracting with a worker without authorization: and
2. Terminate the subcontract with the subconsultant if within three days of receiving the notice required
pursuant to this section the subconsultant does not stop employing or contracting with the worker without
authorization; except that Consultant shall not terminate the Public Contract for Services with the subconsultant
if during such three days the subconsultant provides information to establish that the subconsultant has not
knowingly employed or contracted with a worker without authorization.
Consultant shall comply with any reasonable request by the Colorado Department of Labor and Employment
made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is
undertaking pursuant to the authority established in Subsection 8-17,5-102 (5), C.R,S,
If Consultant violates any provision of the Public Contract for Services pertaining to the duties imposed by
Subsection 8-17.5-102, C.R.S. the Owner may terminate this Agreement. If this Agreement is so terminated,
Consultant shall be liable for actual damages to the Owner arising out of Consultant's violation of Subsection 8-
17.5-102, C.R.S.
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It is agreed that neither this agreement nor any of its terms, provisions, conditions, representations or covenants
can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate
written instrument fully executed by the parties.
If any of the provisions of this agreement shall be held invalid, illegal or unenforceable it shall not affect or
impair the validity, legality or enforceability of any other provision.
17. Warranties Against Continant Fees, Gratuities, Kickbacks and Conflicts of Interest.
(a) Professional warrants that no person or selling agency has been employed or retained to solicit or
secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or
contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies
maintained by the Professional for the purpose of securing business.
(b) Professional agrees not to give any employee of the City a gratuity or any offer of employment in
connection with any decision, approval, disapproval, recommendation, preparation of any part of a
program requirement or a purchase request, influencing the content of any specification or procurement
standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or
application, request for ruling, determination, claim or controversy, or other particular matter, pertaining
to this Agreement, or to any solicitation or proposal therefore.
(c) Professional represents that no official, officer, employee or representative of the City during the
term of this Agreement has or one (1) year thereafter shall have any interest, direct or indirect, in this
Agreement or the proceeds thereof, except those that may have been disclosed at the time City Council
approved the execution of this Agreement.
(d) In addition to other remedies it may have for breach of the prohibitions against contingent fees,
gratuities, kickbacks and conflict of interest, the City shall have the right to:
1. Cancel this Purchase Agreement without any liability by the City;
2. Debar or suspend the offending parties from being a Professional, contractor or subcontractor
under City contracts;
3. Deduct from the contract price or consideration, or otherwise recover, the value of anything
transferred or received by the Professional; and
4. Recover such value from the offending parties.
18. Fund Availabilijy. Financial obligations of the City payable after the current fiscal year are contingent
upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement
contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be
contingent upon the availability of thosc funds for payment pursuant to the terms of this Agreement.
19. General Terms.
(a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions, representations or
covenants can be modified, changed, terminated or amended, waived, superseded or extended except by
appropriate written instrument fully executed by the parties.
(b) If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not
affect or impair the validity, legality or enforceability of any other provision.
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(c) The parties acknowledge and understand that there are no conditions or limitations to this
understanding except those as contained herein at the time of the execution hereof and that after execution no
alteration, change or modification shall be made except upon a writing signed by the parties.
(d) This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect.
Venue is agreed to be exclusively in the courts of Pitkin County, Colorado.
20. Electronic Signatures and Electronic Records This Agreement and any amendments hereto may be
executed in several counterparts, each of which shall be deemed an original, and all of which together shall
constitute one agreement binding on the Parties, notwithstanding the possible event that all Parties may not have
signed the same counterpart. Furthermore, each Party consents to the use of electronic signatures by either Party.
The Scope of Work, and any other documents requiring a signature hereunder, may be signed electronically in
the manner agreed to by the Parties. The Parties agree not to deny the legal effect or enforceability of the
Agreement solely because it is in electronic form or because an electronic record was used in its formation. The
Parties agree not to object to the admissibility of the Agreement in the form of an electronic record, or a paper
copy of an electronic documents, or a paper copy of a document bearing an electronic signature, on the grounds
that it is an electronic record or electronic signature or that it is not in its original form or is not an original.
21. Successors and Assigns. This Agreement and all of the covenants hereof shall inure to the benefit of and
be binding upon the City and the Professional respectively and their agents, representatives, employee, successors,
assigns and legal representatives. Neither the City nor the Professional shall have the right to assign, transfer or
sublet its interest or obligations hereunder without the written consent of the other party.
22. Third Parties. This Agreement does not and shall not be deemed or construed to confer upon or grant to
any third party or parties, except to parties to whom Professional or City may assign this Agreement in accordance
with the specific written permission, any right to claim damages or to bring any suit, action or other proceeding
against either the City or Professional because of any breach hereof or because of any of the terms, covenants,
agreements or conditions herein contained.
23. Attorneys Fees. In the event that legal action is necessary to enforce any of the provisions of this
Agreement, the prevailing party shall be entitled to its costs and reasonable attorney's fees.
24. Waiver of Presumption. This Agreement was negotiated and reviewed through the mutual efforts of the
parties hereto and the parties agree that no construction shall be made or presumption shall arise for or against
either party based on any alleged unequal status of the parties in the negotiation, review or drafting of the
Agreement.
25. Certification RegardingRegqrding Debarment. Suspension. Ineli ibili and Volunta Exclusion. Professional
certifies, by acceptance of this Agreement, that neither it nor its principals is presently debarred, suspended,
proposed for debarment, declared ineligible or voluntarily excluded from participation in any transaction with a
Federal or State department or agency. It further certifies that prior to submitting its Bid that it did include this
clause without modification in all lower tier transactions, solicitations, proposals, contracts and subcontracts. In
the event that Professional or any lower tier participant was unable to certify to the statement, an explanation was
attached to the Bid and was determined by the City to be satisfactory to the City.
26. lnte ration and Modification. This written Agreement along with all Contract Documents shall constitute
the contract between the parties and supersedes or incorporates any prior written and oral agreements of the
parties. In addition, Professional understands that no City official or employee, other than the Mayor and City
Council acting as a body at a council meeting, has authority to enter into an Agreement or to modify the terms of
the Agreement on behalf of the City. Any such Agreement or modification to this Agreement must be in writing
and be executed by the parties hereto.
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27. Authorized Representative. The undersigned representative of Professional, as an inducement to the City
to execute this Agreement, represents that he/she is an authorized representative of Professional for the purposes
of executing this Agreement and that he/she has full and complete authority to enter into this Agreement for the
terms and conditions specified herein.
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized
officials, this Agreement of which shall be deemed an original on the date first written above.
CITY OF ASNCQ40RADO:
[Signature]
By: Sara Ott
[Name]
Title: City Manager
Date: 7/15/2022 1 4:37:21 PM PDT
Approve as to Form:
Ci ttorney
PROFESSIONAL:
6ow54pne�rE��hyy�t:1�
U l Y `shmh
S
[Signature]
By: Todd cristiano
[Name]
Title: senior Manager
Date: 6/28/2022 1 2:25:46 PM PDT
General Conditions and Special Conditions can be found on City of Aspen Website.
litips://www.cityofasVen.cei-n/497/Put-chasing
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EXHIBIT A PROFESSIONAL SERVICES AGREEMENT
Scone Of Work
Project Team
The Raftelis team will consist of the following resources. If a resource becomes unavailable, Raftelis will replace the
resource with someone of comparable experience and knowledge.
CITY OF
ASPEN
PROJECT DIRECTOR
Todd Cristiano
RAFTELIS 5
ELECTRIC AND WATER QAIQC
Amanda Guci
ELECTRIC SUBJECT
MATTER EXPERT
WATER /WASTEWATER LEAD ELECTRIC LEAD Tom Sullivan, PE
Justin Rasor Collin Drat
STAFF CONSULTANT STAFF CONSULTANT
Lundyn Harrelson Joe Collins
Project Plan
Task 0: Project Initiation
WORK PLAN ACTIVITIES
This task sets the stage for efficient and effective project execution through understanding the City's perspective
and what they value in a success project.
• Project Management
o Provide timely invoices, conduct regular calls with the City's project manager, and identify
milestones and deliverables.
Project Initiation Meeting
o Provide data request in advance of project initiation meeting.
o Review prior City rate models prior to the meeting
o Schedule conference call to review and clarify data request items.
o Discuss other policy objectives that may affect the study (e.g., reserve policies, debt
coverage requirements, etc.).
o Review rate model functional requirements with staff
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• Pricing Objectives Workshop
o Conduct a pricing objectives workshop with City staff to better understand the objectives of
current rate structures, and critical issues that should be considered in the development of
alternative rate designs such as low income, changes in base charges
o Review current Electric Community Investment Fees and Utility Investment Fees structure and
identify the key priorities for possible modifications
o Prepare rate structure alternatives that align with the selected objectives. Rate structure
alternatives will be evaluated in Task 6
DELIVERABLES:
• Kick-off meeting with City Staff
• Technical Memorandum summarizing results and action items from Kick-off meeting
Technical Memorandum (TM) summarizing results of pricing objectives workshop
Task 1: Revenue Requirements for Electric and Water Utilities
WORK PLAN ACTIVITIES
This task lays the groundwork for creating a long-term financial roadmap to meet financial goals. This will
assist the City with proactive planning of large capital projects, evaluating various funding options and
balancing those to minimize future revenue adjustments
Customer Billing Data Analysis
• Calculate the number of bills and ECUs for
all water customers for the past three years b
ased on billing area, billing area factor. This
applies to the customer classes who are
:G?r:
Example Bill Frequency Analysis
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302A0.18,% 5BOX05h 95%a19Aa
BI(4
>25 W
23%ul Bil,
assessed the fire protection charge and the
demand charges. These classes include all E
I
6:+ I
metered and unmetered customers,
construction water, and senior rates.
• Develop the residential bill frequency to
determine the number of bills and water i
volume billed within each tier by ECU for all
20 21 22 23 2= 2: 26 2' e 25 v,
metered water customers. Calculate volume s,
�cRa�aa„=e^n:e'usag=--Cn_rneveare Jens
billed for pump levels 1, 2, and 3. Calculate
total volume billed for all other customers
(e.g. pressurized and non -pressurized raw
water, irrigation,
senior, etc.). Analyze last three years of data to determine changes in usage patterns. Apply
appropriate rate schedule to each class and year and reconcile revenues back to budget documents
and annual reports.
• Develop bill frequency to determine the number of bills and kilowatt-hours billed within each
current tier for residential customers. Calculate total kilowatt-hours billed for small and large
commercial and kilowatts billed for large commercial. Analyze last three years of data to determine
changes in usage patterns. Calculate total kilowatt-hours billed for the commercial, Apply
appropriate rate schedule to each class and year and reconcile revenues back to budget documents
11
DocuSign Envelope ID: F48F11AD-FB23-4263-8E16-CC96E9575AE7
and annual reports.
Project water and electric rate revenues based trends from the historical data develop in the above
tasks. Adjust projections for potential conservation efforts. Water rate revenues include the
demand charges, fire protection charges, pumping charges, and variable charges. Electric rater
revenues include residential, small commercial consumption and availability charges, and large
commercial consumption, demand, and availability charges
Water Financial Plan (Long Range Plan or LRP)
• Create an LRP for the water utility for the study period 2022 to 2031. The LRP includes operating
revenues, operating and non -operating revenues, operation and maintenance expense, capital
expenditures, and transfers.
• Forecast revenue under existing rates using the demands projections developed above along with
other operating and non -operating revenues such as development review fees, and tap fees (water
utility investment fees) for water and electric community investment fees and other operating
income. If necessary, incorporate the price elasticity of demand to account for changes in customer
usage behavior from the impact of rate increases.
• Forecast operations and maintenance (O&M), capital, and overhead allocation charges.
Incorporate new positions, changes in operating efficiencies, etc.
• Develop `optimal' revenue requirement financial plan balancing a mix of cash funding and debt
financing capital projects (if applicable) while meeting reserve targets, and minimizing revenue
increases. Calculate annual rate revenue adjustments needed through the study period.
• Update financial plan scenarios based on feedback from City staff
Electric Financial Plan (Long Range Plan)
• Create an LRP for the electric utility for the study period 2022 to 2031. The LRP includes
operating revenues, operating and non -operating revenues, operation and maintenance expense,
capital expenditures, debt service, and overhead allocation transfers.
• Forecast revenue under existing rates using the demands projections developed above along with
other operating and non -operating revenues such as the electric community investment fee, tenant
service deposits, and electric development review fees. If necessary, incorporate the price elasticity
of demand to account for changes in customer usage behavior from the impact of rate increases.
• Forecast operations and maintenance (O&M), capital, and overhead allocation charges. Incorporate
new positions, changes in operating efficiencies, etc. Review with City and significant changes to
purchased power projections, and locally produced power. Compare with trends in the regional area
• Forecast debt and capital costs for the study period.
■ Develop `optimal' revenue requirement financial plan balancing a mix of cash funding and debt
financing capital projects (if applicable) while meeting reserve targets, debt service coverage
requirements, while maintaining conservative debt capacity levels and minimizing revenue
increases. Calculate annual rate revenue adjustments needed through the study period.
• Update financial plan scenarios based on feedback from City staff
Revenue Requirement (See Task 2 for additional steps with cost allocation)
• Develop separate water and electric revenue requirement for the year in which rates will be effective, If
test year is beyond the next budget cycle, develop rates that will transition to that revenue requirement
and recover cost of service by class.
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DocuSign Envelope ID: F48F11AD-FB23-4263-8E16-CC96E9575AE7
DELIVERABLES:
• Water and electric LRPs
• Water and electric revenue requirement
• Conference call with staff to review LRPs and adjust as necessary.
Task 2: Develop a Revenue Recovery Cost of Service Rate Model
WORK PLAN ACTIVITIES
This outcome of this task is to develop rates which recover costs fairly and equitably from customer classes while
minimizing subsidies between the classes.
■ Determine the test year revenue requirement (which includes O&M, capital projects, transfers, debt
service, etc.) for the purposes of cost allocation
• Allocate test -year capital cost, O&M expenses, and non -rate revenue offsets to the correct `buckets'
o For water, buckets include demand charge, fire protection charge, pumping (1, 2, and 3),
variable, raw, and bulk water service.
o For electric, buckets include energy, demand, billing, transformer, and community benefit
■ Determine customer class units of service. Units of service include:
o For water, ECUs, water demands, billing area factors
o For electric, kilowatt-hours, kilowatts, billing, and transformer (equivalent amps)
• Calculate unit cost by expense bucket.
o For water, the expense buckets are analogous to customer classes. This step calculates the unit
cost per ECU for demand charges, variable charge, fire protection charge, and pumping
charge. These unit costs are used in the rate design
o For electric, the unit cost is based on the expense buckets of demand, availability, energy, and
billing.
• Distribute costs to customer classes/buckets
o For water, the cost of service was calculated above in the allocation step.
o For electric, the unit costs developed above are applies to each class' units of service
for demand, availability, energy, and billing
Compare cost of service buckets/classes to revenue under existing rates for the same.
Rate Design Under Existing Structure
o Calculate rates by bucket (water only) or by class (electric) for the test year. If the test year is
beyond the next budget year, create rate transition to achieve cost of service in the final year.
o Create additional rate design alternatives which is discussed further in Task 3
DELIVERABLES:
• Separate water and electric cost of service models
• Draft and final LRP in which to develop cost of service and rates
• Comparison of cost of service results to revenue under existing rates for the selected test year
• Rates that are transitioned (if necessary) that recover cost of service by bucket (water) and by class
(electric)
■ TM summarizing results of cost of service analysis
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DocuSign Envelope ID: F48F11AD-FB23-4263-8E16-CC96E9575AE7
Task 3: Run Two or Three Cost of Service Scenarios with Rate Model
WORK PLAN ACTIVITIES
■ Using the results developed in Task 3, develop alternative rate schedules based on direction from staff.
This may include adjusting the water demand charges or electric availability charges to address address
affordability goals, or adjusting the tiers in the water volume and the energy consumption rates.
• Conduct a revenue recovery sensitivity analysis comparing the alternative to the cost of service
rates. Identify pricing objectives such as revenue stability, affordability, conservation that the rate
structures must meet. Determine measurable criteria and compare each alternatives' ability to
meet those objectives.
■ Create customer impacts which will show
each customer change in annual bill under
existing structure and alternative structure.
State this on an average monthly basis and
create customer impact graph which will
show how many customers' average bill will
increase at specific dollar increments. For
example (numbers are illustrative only), the
graph may show that 350 customcrs' (or 25%
of the customer base) will see an average
monthly bill increase of $100 or less. This
information provide great feedback how
impactful a rate structure change can be on
customers.
30% Customer BIII Impact
25%
20%
E
g 15%
u 20%
0
ae 5%
0%
F.yB .yy 0,yy 0'� 1P ,y5y %P DStiu 'Sv0
� V. a .yro a � gy yy Sg �
$ Change In Monthly BIII
DELIVERABLES:
• Conference call with staff to run `what -if scenarios on alternatives.
• TM summarizing results of rate design analysis of the existing and proposed rate structure alternatives
Task 4: Meetings and Other Deliverables
WORK PLAN ACTIVITIES
Develop Fee and Rate Recommendations
Based on the analysis completed on the previous tasks, the rate objectives identified in Task 4, and
discussions with staff, finalize the rate alternative calculations in the rate model. These finalized rates
will then be used to develop future LRP revenue projections and serve as the basis for the cost of
service and rate design.
Present the Final Report to City Council
• Develop presentation which summarizes the water and electric rate setting process. Provide copy for staff s
review and comment. Update presentation incorporating comments.
• Attend City Council meeting to present findings and answer questions
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DocuSign Envelope ID: F48F11AD-FB23-4263-8E16-CC96E9575AE7
Water and Electric Comparison Study
Update the residential water typical bill survey based on the selected peer utilities and using the City's
existing survey model.
Update the residential electric typical bill survey based on the selected peer utilities and using the City's
existing survey model.
Task 6: Supplemental Tasks Included in Scope of Work
WORK PLAN ACTIVITIES
■ Increased number of EV charging stations. Evaluate revenue opportunities for the City with increasing
the availability of charging stations. Conduct a cost benefit analysis based on the current EV management
platform and potential alternatives
EV charging station rates. Evaluate energy and demand patterns of the various EV stations and develop a
customer class within the cost of service model to allocate costs and determine the appropriate unit costs.
Weigh costs in light of community goals and the political environment around promoting increased use of
EV charge stations. Evaluate the possibility of time -of -use rates that will help smooth loads such that
capacity is not materially affected.
Beneficial electrification. Evaluate the impacts of increased demand across our existing electric service
area as a result of beneficial electrification. Using rate model, determine is if increased load has a material
impact on the cost allocations. Compare the increased demand and associated greenhouse gases to the
reduction in traditional fossil fuels due to the transition. If possible, use any benchmarks in the City's
Climate Action Plan to determine how and what level of beneficial electrification may be required to meet
certain goals.
• PV solar base rate. Evaluate the costs associated with the service requirements for customers with
individual PV solar. This would involve completed a cost allocation study to assess labor, materials, and
other indirect administrative costs associated with providing services to these customers.
• Senior rates. Calculate the current subsidy to the senior accounts and the impact to other customers. With
assistance from staff, identify specific peer utilities which have senior programs. Compare and contrast the
programs and identify potential other methods to maintain lower rates for seniors while minimizing
subsidy impact to other customer classes
• Base charges on small residential electric customers review. Through the cost of service analysis
determine whether the base charges are recovering their proportionate share of cost of service. First,
review cost allocations to determine if adjustments are required. If cost allocations are representative,
evaluate rate design options to minimize increases to the base charges.
• Extend water construction rate period. Determine the financial impact to extending the period in which
construction water is not assessed variable rates from 9 to 12 months (they are currently assessed the demand
and fire charges). Determine average number of construction meters and duration meters are held.
Determine the volume and revenue for usage in excess of the 9 months based on the average outstanding
construction hydrants in a given year. Determine the revenue reduction from extending the period from 9 to
12 months,
• Rate structure changes. Review potential changes to tiered rate structure to address emerging industry
trends and conservation efforts. Using the bill frequency analysis and pricing objectives create rate
alternatives with the tiered structures that will better meet objectives. Compare the bill impacts under each
scenario.
• Waterworth Update. Input complete rate and fee schedule into Waterworth — a utility rate setting and
15
DocuSign Envelope ID: F48F1 1 AD-F1323-4263-80 6-CC96E9575AE7
financial planning platform. Assist staff with entering data into the Waterworth system. Provide QA/QC
to ensure accuracy of rates.
Project Schedule
Raftelis will complete the scope of services within the timeframe shown in the schedule below. The proposed
schedule assumes a project start date of July 30, 2022, and that Raftelis will receive the needed data in a timely
manner and be able to schedule meetings as necessary. Raftelis will complete the final report on or before
September 2023. Raftelis will present the final report on or before, October 2023.
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
0. Project Initiation
1 Revenue Requirement for Water and
Electric Utilities
2. Develop a Revenue Recovery Cost of
Service Rate Model
3. Run Two or Three Cost of Service
Scenarios with the Rate Model
4. Meetings and Other Deliverables
4a. Develop Fee and Rate
Recommendations
4b. Present the Report to City Council
4c. Water and Electric Comparison Study
In -Person Meetings
Web Meetings
Deliverables
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DocuSign Envelope ID: F48F11AD-FB23-4263-8E16-CC96E9575AE7
EXHIBIT B PROFESSIONAL SERVICES AGREEMENT
Fee Schedule
Pricing — Work Plan
The following tables provides a breakdown of our proposed fee for this project. These tables include the
estimated level of effort required for completing each task and the hourly billing rates for our project team
members. Expenses include costs associated with travel and a $10 per hour technology charge covering
computers, networks, telephones, postage, etc. Table B1 shows the pricing by task, for Tasks 1 through 5
shown in our work plan. Table B2 shows the pricing by milestone as identified in the City's RFP. The not -to -
exceed price is the same in both cases, with the only difference being the way the information is presented.
Pricing for the Supplemental Tasks, which are included within the scope of work, follow in Table B3.
Additional hourly rates are specified in Table B4.
Table B1: Pricing by Task for Tasks 1-5
Hours
Web in -person
Total Fees &
Teske (per Proposal Work Plena
Meetings Meetings
TC
AG
TS
CD
Jc
LH Total
r
Expenses
0. Pro(act Initiation
12
-
2
8
2
2 38
$12,463
1. Revenue Requirement for Water and
1
12
38
38 108
$24,230
Electric Utilities
2, Develop a Revenue Recovery Cost of
12
38
38 120
$27,530
Service Rate Model
3. Run Two or Three Cost of Service
6
0
0 42
$10,350
Sce na ri" vAln the Rate Modal
4. Meetings and Other Dellverables
4a, Develop Fee and Rate
12
12
2
2 36
$9,530
Recommendations
r
4b. Present the Report to CIry Council
1
16
12
12
2
2 44
$13,007
4c, Water and Electric Comparison Study
2
2
4
4 12
$2,600
Total Meetings r Hours
4 2
09
12
10
62 ,
62
94
94 400
Hourly Billing Rate
$285
$255
$275
$255
$255
$225
$160
Total Professional Fees
$18,810
$3,060
$2,750
$15,810
$15,810
$21,150
$15,040 $92,430
TC • Todd Crisden0
Total Fees
$92,430
AG - Amanda Gucl (OA/OC)
TS • Tom Sullivan (Technical Advisor)
JR • Justin Rasor (Water Lead)
Total Expenses
$7,350
CD - Collin Drar (Electric Lead)
JC • Job Collin (Lead Analyst)
Total Fees (L Expenses
LH • Luadyn Harrelson (Lead Analyst)
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DocuSign Envelope ID: F48F11AD-FB23-4263-8E16-CC96E9575AE7
Table B2. Pricing by Milestone for Tasks 1-5
Hours
Web In -person
Total Fees &
Milestone$(perCityRFP)
Meetings Meetlnps
TC
AG
TS
JR
CD
JC
LH Total
Expenses
Pro)act Mck-O f (Took 0)
0 1
12
4
2
6
6
2
27 38
$12,453
Delivery of Revenue Ro4wrarl (Took 1)
1 0
12
0
0
10
10
30
38���38 108
$24.230
fleflveryofPreliminary $canarlo"oling
(Task 2)
0
12
6
6
10
10
38
38 120
$27,530
Delivery of Draft Ripon (Task 4a)
9
a
0
0
12
12
2
2 36
$0,530
Council Presentation of Final Ripon (Teske
3, 4b and 4c)
22
2
2
22
22
14
14 88
$26,037
Total Meetings r Hours
4 1
60
12
10
62
02
64
04 400
Hourly 8110"0 Rate
$285
$265
$275
$255
$265
$226
$100
Total Professional Fees
$18,810
$3,080
$2,750
$15,810
$15,810
$21,150
$15,040 $92,430
TC - Todd Cr,sf ano
AG -Amanda Gucr (OAiGC)
Total Fees
$92,430
7S - Tom Surlrvan r7ecnrelcar Advrsorl
JP,-JueanR8aor(Warirtiad)
Total Expenses
$7,350
CO - CAdmn Drat (E*C1nO �080)
(ztsd t)
dC • Joe COIdyr?
LH • Lundyn HBrriisdn (Lied Ani7y9[)
He (u6&d
Total Fees & Ex piltie6
Table B3 below indicates the estimated pricing for the supplemental tasks listed on pages 6 and 7 of the City's
RFP. These are described in Task 6 of our work plan. The pricing assumes they are conducted either in
conjunction with the Tasks 1 through 5 or relatively soon after study completion. It also based on the cost of
doing each task individually. If they are all conducted at the same time, there may be some efficiencies which
could reduce the cost. If needed, Raftelis can work with City staff to determine which tasks are needed, at
which point the level of effort can be refined to meet the City's needs.
18
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Table B3. Pricing for Supplement Tasks (Task 6)
Hours
Web
In -parson
Total Fees b
Supplemental Tasks (par City RFP)
Meetings
Meetings
TC
AG
TS
JR
CO
JC
LH Total
Expanses
EV Station Impaots
1
0
2
2
6
16
16 44
09,720
EV Station Rates
1
0
2
1
4
12
12 31
$6,775
Elvotdfio+tion
i
0
2
2
6
16
18 44
09,720
Base Rau for SOIar Customers
0
2
1
2
6
6 17
$3,815
Senior Rates AnalysislBanohmarking
t
G
1
2
4
6 15
$3,125
Base Charge for Small Eleotrio
s
2
6
6 16
$3,520
Customers
Extend Water Construotlon Period
i
4
10
10 26
05,700
Rote Struoture Changes
Z
16
16 42
$9,190
Input Rato s Into Waterrorth
_
4
4 11
02,445
Total Meetings l Hours
6
0
15
7
0
14
26
90
94 246
Hourly
Billing Rate
$205
$255
•275
$255
$255
s225
$160
Total Professional Fees
$4,275
$1,785
40
$3,570
$6,630
$20.250
$15,040 $51,550
TC - TOM Crl0940
Total Fees
i51,550
AG -Amanda Gdcr {OA1OCy
TS - Tom Sufflvan (Technfcal AOvlaor)
JR- JustinRasd((waterLCodl
TotalEwp-nsas
$2,460
CD - Colfln Dror (Eleame Lean I
JC - Joe Collins (Lead Analyst)
Total Fe to f4 Expanses
LH- Lowy* Harrelson (LeadAwlystJ
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DocuSign Envelope ID: F48FllAD-FB23-4263-8E16-CC96E9575AE7
Hourly Billing Rates
Project team hours and expenses will be billed on the same invoice. Expenses related to travel will be billed at
cost. Additional services outside the agreed upon scope of work will be billed on a time and materials basis.
Raftelis' billing rates can be found below.
Table B4. Hourly Billing Rates
POSITION HOURLY BILLING RATE**
Chair/Chair Emeritus
$475
Chief Executive Officer/President
$400
Executive Vice President
$350
Vice President/Principal Consultant
$325
Senior Manager
$285
Manager
$250
Senior Consultant
$220
Consultant
$190
Creative Director
$190
Associate
$160
Graphic Designer
$135
Analyst
$115
Administration
$85
Technology Charge*
$10
Techrrolo;_I /Cnnrnarnication.s
Charge: This is an hourll• fee charged
monthh for each hour worked on the
project to recover telephone, f tes•indle,
computer, postage%ner•nightdelirerr,
confereneecalls, electronicleonrputer
wehinars, photocopies, etc.
"'Tor servicev related to the
preparation for and participation in
deposition and triaLsihearings, the
standard billing rates listed above will
be increased of an amount up to 50
percent.
20