HomeMy WebLinkAboutresolution.council.024-96
.
.
.
RESOLUTION # 2.:4-
(Series of 1996)
A RESOLUTION APPROVING AN CONTRACT FOR HOLY CROSS
FRANCHISE AGREEMENT CONSULTING WORK BETWEEEN SVBK
CONSULTING GROUP AND THE CITY OF ASPEN, COLORADO, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT
ON BEHALF OF THE CITY OF ASPEN, COLORADO
WHEREAS, there has been submitted to the City Council a contract for Holy Cross
franchise agreement consulting work between SVBK, Consulting Group and the City of Aspen,
a true and accurate copy of which is attached hereto as Exhibit n An;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
ASPEN, COLORADO:
That the City Council of the City of Aspen hereby approves that contract agreement
between SVBK Consulting Group and the City of Aspen, a copy of which is annexed hereto
and incorporated herein, and does hereby authorize the City Manager to execute said agreement
on behalf of the City of Aspen.
INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on
the Bnd
day of May 1996.
,p'Y. {P~
Johh S. Bennett, Mayor
I, Kathryn S, Koch, 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 on the day hereinabove stated.
~
e'
,,'
"''-c_
.
.
-) -,
~.:) _1-.
AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement made and entered on the date hereinafter stated, between the CITY OF
ASPEN, Colorado, ("City") and SVBK Consulting Group ("Professional").
For and in consideration of the mutual covenants contained herein, the parties ag~ee as
follows:
1. Scope of Work. Professional shall perform in a competent and professional manner
the Scope of Work as set forth at Exhibit" A", tasks 1 through 14, as amended by that certain letter
dated April 8, 1996, attached hereto as Exhibit "B".
2. Completion. Professional shall commence work immediately upon receipt of a
written Notice to Proceed from the City and complete all phases of the Scope of Wqrk 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 December 31, 1996. 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
Fifty-One Thousand Dollars ($51,000.00). 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 billing, the City understanding of the disposition of the issue. Professional's i-!lvoice
shall be for the period ending the 25th day of each month. The invoice should be received by the
City's project engineer no later than the 1st of each month.
4. Non-Assignability. Both parties recognize that this contract 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 payor be
liable for payment of any sums due which may be due to any,sub-contractor.
I
5. Termination. The Professional or the City may terminate 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, 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.
6. Covenant Against Continl?ent Fees. The Professional warrants that sfhe has not been
employed or retained any company or person, other than a bona fide employee working' for the
Professional, to solicit or secure this contract, that s/he has not paid or agreed to pay any company
or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gifts
or any other consideration contingent upon or resulting from the award or making of this contract.
For a breach or violation of this contract without liability, or in its discretion to deduct from the
contract price or consideration, or otherwise recover, the full amount of such fee, commission,
percentage, brokerage fee, gift or contingent fee.
7. Inde1,Jendent 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, I 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 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 wit!), 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. Liability. Damages. Indemnity and Release.
Professional and its subcontractors shall have no liability for any consequential, indirect, or
incidental losses or damages including, but not limited to, loss of use, lost revenues or profits, loss
of capital or financing, increased operation costs, loss of good will, contractual claims by third
parties, and regulatory penalties or i,anctions imposed on City, and City hereby releases
Professional from any such liability. The total liability of Professional and its sub-rontractors to
City, arising out of or in 'connectidn with this Agreement; from any and all causes, shall in no event
exceed, in the cumulative aggregate the proceeds of any applicable insurance required to be
maintained by the Professional under the provisions of this Agreement; and the City hereby
expressly releases Professional from any liability in excess thereof. The limitations on
.2
.
.
.
Professional's liability set forth in this Agreement shall apply in the event of Professional's fault,
negligence, breach of contract, or strict liability.
Professional shall indemnify and hold harmless the City and its governing body, officers and
employees, from any and all claims, expenses, and liability, following operation of applicable
rights of contribution, arising out of negligent acts, errors or omissions of the Professional and its
employees, Including claims made by employees of the Professional; provided, however, such
indemnification and hold harmless shall not exceed the amount set forth above.
To the full extent permitted by law, City shall indemnify and hold harmless Professional, its
officers, and employees and associates from all claims, expenses and liability, following operation
of applicable rights of contribution, arising out of negligent acts, errors and omissions of the City,
and its associates or employees, including claims of any kind arising out of a claim for loss of life,
bodily injury, property damage or other loss from any cause related to the furnishing of the services
covered by this Agreement. City's remedies specified in this Agreement are City's exclusive
remedies for liabilities of Professional arising under this Agreement. Releases from liability and
limitations on liability expressed in this Agreement shall apply to the fullest extent permitted by
applicable law, even in the event of Professional's fault or negligence, and whether founded in
contract, tort, strict liability, or other basis of liability. .
9. Professional's Insurance. (a) Professional agrees to procure and maintain, at its
own expense, a policy or policies of insurance as provided for herein, 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 contractor by
law. The Professional shall not be relieved of any liability, claims, demands, or other obligations
assumed pursuant to Section 6 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) Workmen'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 FIVE HUNDRED 1HOUSAND
DOLLARS ($500,000.00) for each accident, FIVE HUNDRED 1HOUSAND DO~LARS
($500,000.00) disease , policy limit, and FIVE HUNDRED 1HOUSAND DOLLARS.
($500,000.00) disease -,each employee. Evidence of qualified self,insured status may be substituted
for the Workmen's !Compensation requirements of this paragraph.
(ii) Commercial General Liability insurance with IIDillmum combined single
limits of ONE MILLION. DOLLARS ($1,000,000.00) each occurrence and ONE
3
.
."'"
"',,:,
.
MILLION DOLLARS ($1,000,000.00) aggregate. The policy shall be applicable to all
premises and operations. The policy shall include coverage for boQily iI1iury, 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 contain a severability of interests provision.
(ill) Comprehensive Automobile Liability insurance with minimum combined
single limits for bodily injury and property. damage of not less than ONE MILLION
DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($l,ooo,()()..
0.(0) aggregate with respect to each Professional's owned, hired and non-<Jwned 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)
DOLLARS
aggregate.
Professional Liability insurance with the minimum limits of ONE MILLION
($1,000,000) each claim and ONE MILLION DOLLARS ($1,000,000)
( 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 by the City shall be completed by the
Professional's insurance agent as evidence that policies providing the required coverages, condi-
tions, 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 certifi-
cate 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 procllfe or
renew j,IIly 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.
4
.
e
.
(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 $150,000.00
per person and $600,000 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. City's Insurance. The parties hereto understand that the City is a member of the
Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA
Property/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen
Finance 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.
11. Completeness of Agreement. 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 to the
respective persons and/or 'addresses listed below or mailed by certified mail return receipt
requested, to:
City:
Amy Margerum, City Manager
City of Aspen
130 South Galena Street
Aspen, Colorado 81611
Professional:
SVBK Consulting Group
I.A. Vumbaco, Managing Principal
4643 S. IDster St., Suite 1485
Denver, CO 80237-2869
13. Non-Discrimination: penalty. No discrimination because of race, 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 13-
98, 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 $ill be
5
e
entitled to invoke any remedy available to it under this Agreement or by law despite any such
forbearance or indulgence.
15. Execution of Agreement by City. This agreement shall be binding upon all parties
hereto and their respective heirs, executors, administrators, su=ssors, and assigns. Notwith-
standing 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. General Terms.
(a) It is agreed that neither this agreement nor any of its terms, provlSlons,
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
provlSlon.
(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 begovemed by t!Je laws of the State of Colorado as
from time to time in effect.
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly
authorized officials, this Agreement in three copies each of which shall be deemed an original on
the date hereinafter written.-
Dated:
[-/7-'16'
ATTESTED BY:
CITY OF ASPEN, COLORADO:
.#jA4jj~~/J
efhyJ "~~~
By(l/-jI((j~
6
e
.
.
Witnessed By:
APPROVED AS TO FORM BY:
8vbk.agr
Title:
PROFESSIONAL:
SVBK Consulting Group
By:
! Uo
~II-Yl.
7
l
".
~ .j:,
\(i'
'~W;
,
EXHIBIT HA"
Ill. SCOPE OF SERV1CE
A.
PROJECT OIlJECTIVES
Based on our February 27, 1996 meeting with the City Staff, it is our understanding that the
City's objectives with regard to this study are:
>- To acquire a sufficient understanding of Aspen's electric utility system, and Holy Cross'
electric utility system within the City limits of Aspen, to be able to wisely advise the
City Council on its alternative courses of future action;
>- To explore the potential expansion of Aspen's electric utility system when the existing
franchise with Holy Cross expires in the year 1997;
>- To explore ways to reduce the cost of electricity to Aspen electric users, including both
those users currently served by the City and those served by Holy Cross; and
>- To explore the potential for future expansion of the City's municipal electric system into
currently unincorporated areas which the City may at some point in the future annex.
B. SCOPE OF SERVICE
The City of Aspen (hereinafter "Aspen" or the "City") is at a crossroads regarding its future
electric service. Expiration in 1997 of the City's existing franchise with Holy Cross Electric
Association ("Holy Cross") affords the City the opportunity to:
>- continue service with Holy Cross in future years;
>- expand the City's existing electric utility to serve the areas currently served by Holy
Cross that are under consider for acquisition ("Distribution Expansion Area(s)"); or
>- serve only some portions of the Distribution Expansion Area(s) by "cherry'picking"
select customers therefrom.
The purpose of this Study will be to critically examine the options available to the City, and to
prov ide to City decision-makers information necessary for the making of informed judgements.
The simplest course of action for the City - and its first alternative - would be to continue its
existing franchise with Holy Cross without major change. However, with such course of action,
the City would have limited future influence on Holy Cross., Negotiated modificationlof the
franchise with Holy Cross, as a condition of renewal with suitable concessions, would be a
second alternative for the City. A third alternative, and the one which will be most focused upon
within this study, is the acquisition of the Distribution Expansion Area(s) from Holy Cross, thus
expanding the City's existing municipal electric utility. This alternative would put ultimate
local control of the entire electric system serving the City of Aspen in the hands of the City.
These alternatives clearly represent several distinct possibilities for the City - each having their
own merits, tiine lines, cost of implementation, and risks. From SVBK's long term experience
6
SCOPE OFSElIVICE
in analyzing such alternatives for numerous municipal clients throughout the country, it is our
opinion that a detailed level of work is required to achieve meaningful results to provide the City
with adequate information in support of an informed strategic planning process, directed at
bringing the matter to successful conclusion. For this reason, and in the interest of providing
objective support to the City's critically important deliberations, the Scope of Services we
propose to perform herein has been designed to examine each of the realistic alternatives
through the use of a process which is responsive to the City's stated goals and objectives and is
commensurate with the level of detail necessary to provide the City - at the end of the process -
with an objective evaluation of its realistic alternatives for use in its decision making process.
TASK 1 - PROJECT INITIATION
The Project will commence within five (5) working days of contract award beginning with an
initial meeting with representatives of the City, The purpose of this meeting will be to reach a
mutual understanding regarding the project objectives; the scope of the specific issues to be
addressed, project schedule, the proposed detailed work plan, and protocols for coordinating the
SVBK's project activities, At this time a detailed data request to the City and to Holy Cross will
be presented for the City's consideration, as discussed hereinafter.
TASK 2 - REVIEW OF FRANCHISE AGREEMENT
~
F
.
[n conjunction with the City Attorney, SVBK will review the existing franchise and any
agreements between the City and Holy Cross, together with applicable state laws, administrative
regulations and provisions of the City Charter and local ordinances, SVBK will utilize the
results of this review, together with its knowledge of existing and proposed federal statutes,
regulations, and industry developments, its experience in establishing and expanding municipal
electric systems, and its experience representing municipal and cooperative electric systems and
large industrial electric consumers, to analyze each realistic City alternative.
TASK 3 - REVIEW OF OPTIONS
[n this task, SVBK will identify and itemize the options potentially available to the City. As the
electric utility industry is currently going through a period of significant change from a
monopoly to a free market competitive environment, and as deregulation activities are complex
and far reaching, it is critically important that the City gain an objective understanding of the
feasibility of its options in light of ongoing events. Accordingly, this task will be structu['ed to
provide the City with information concerning the pros and cons of each identified option in
order to provide the City with an understanding of the rationale for proceeding into the future.
Among the options to be considered are:
I> Renewal of the existing Holy Cross franchise without modification;
:>- Renewal of the existing Holy Cross franchise with negotiated modifications; and
> Acquisition of one or more distribution expansion service areas from Holy Cross.
'\l
7
j
SeOI'E. OrSE.RVICI,'
Thc product of Task 3 will be a review, with input from the City Staff, which discusses the
technical, legal and economic/tinancial factors for the above listed options available to the City.
TASK 4 - REvmw OF FACILITIES UNDER CONSIDERATION FOR ACQUISITION
SYBK will perform a general review of those portions of Holy Cross's local electric distribution
system serving customers within and surrounding Aspen in order to gain an understanding of
the facilities under consideration for acquisition by the City. The system will be reviewed with
respect to its general design, construction and condition.
The starting point for evaluating potential distribution system expansion areas will be to ide;ntify
existing local Holy Cross transmission/distribution facilities. This obvious tirst step is
sometimes the most difficult, depending upon the cooperation received from the,utility that owns
the system. It is expected that detailed information on the existing power system will only be
available from Holy Cross. Absent infonnation from Holy Cross, it will be more difficult to
determine the existing system configuration, equipment sizing, feeder loadings, and so forth.
Without the timely availability of such data descriptive of Holy Cross's facilities, a limited field
inspection will be required to develop necessary system infonnation, It is also possible that the
City Electric Department may have the requisite data required for the study. SYBK will
interface with the City to minimize the need for performance of an independent review of the
area(s) under consideration for acquisition. SYBK will use the following approach to identify
and inventory the components of the power system serving the potential Distribution Expansion
Areas in and around Aspen.
.~
Direct Request to Holy Cross - With the City's concurrence, SYBK will attempt to acquire
necessary distribution system, load and customer infonnation directly from Holy Cross. SVBK
will review infonnation as is made available by Holy Cross, and will request additional data as
appropriate. It has been our experience in similar projects of this nature that, at best, utilities
assign such requests low priority and provide requested infonnation slowly. To minimize such
delays, SYBK will develop a comprehensive written Iistof data requirements and coordinate
with the City to accelerate the data collection process. SYBK strongly recommends persistence
in following up all such data requests.
Publicly Available Information ,It has been SYBK's experience that much of the information
required to identify and inventory the existing power system may be available through other
channels. SVBK will request FERC Form I and REA Form 7 type of data from Holy Cross or
will attempt to obtain this infonnation through other public channels. We will also seek pliblicly
available information through the Colorado Public Utilities Commission, and other state and
federal agencies with regulatory responsibility over Holy Cross.
Sile Inspections. In order to identify and inventory the existing Holy Cross distribution
facilities under consideration for acquisition by the City; a site inspection will be accornplished
as necessary to become acquainted with the nature of the existing system and to idtntify possible
problems which may be encountered in the City's proposed acquisition.
8
Seol'!: OF SElWICE
The best way to display existing power system information is on maps and tables. To perform
this task, SVBK will attempt to obtain from Holy Cross, system one.line diagrams concerning
local facilities, applicable design standards utilized in the development of the system serving the
Aspcn area, as well as, information which indicates the age of its existing local facilities.
Tables and appropriate one-line routings will be prepared to complete the inventory of the
system data, including a display of distribution system lines lengths, conductor and transformer
sizing, services, number of meters, street lighting, etc.
Task 5 ? VALUATION OF SYSTEM UNDER CONSlDERATION FOR ACQUISITION
Data acquired in the performance of Task 4, as well as information assumed to be accessible
from Holy Cross, should provide SVBK with the basic information necessary to perform a
valuation of the existing Holy Cross distribution system areas under consideration for
acquisition by the City. SVBK assumes that one,line diagrams of Holy Cross's local power
system will be available with sufficient detail to pennit reasonable identification of the total
miles of distribution lines, as well as the number and sizing of substation equipment, distribution
transformers, capacitor banks, fusing schemes, switches and disconnects, seetionalizersl and
reclosers and other installed distribution equipment. The number and age of poles, overhead and
underground conductor sizing and other items not shown on Holy Cross supplied diagrams will
be developed from an examination of Holy Cross's physical plant inventory records, and other
such records as may be available, including City and County tax information.
Upon completing development of a system inventory, existing Holy Cross facilities under
consideration for acquisition by the City will be categorized by age and type of plant
(transmission, distribution, general, etc.). Based upon SVBK's review of Holy Cross physical
property records, historical annual renewals. and replacements expenditures and originailcost
infonnation for each inventoried facility will be determined for inclusion in SVBK's valuation
database.
Utilizing the database, SVBK will develop a valuation of the existing Holy Cross system unqer
consideration for acquisition by the City on the basis of (I) Replacement Cost, (2) Replacement
Cost Less Depreciation, (3) Original Cost, and (4) Original Cost Less Depreciation valuation
methodologies. Additionally, SVBK will develop an estimate of Physical Severance Damages,
ifanv, which could be claimed by Holy Cross in condemnation proceedings. Holy Cross might
also claim Stranded Investment damages should the City elect to condemn a portiones) of their
local power system. The issue of stranded investment is presently a volatile subject with re'spect
to electric utilities in the courts and at several state and federal regulatory agencies. SVBj( will
provide a preliminary estimate of the magnitude of any potential claim for stranded investment
damages, if any, Holy Cross might make.
TASK 6 - ENERGY AND POWER REQUIREMENTS
,
Task 6 represents an important work element upon whose results! will depend all other,work
activities. Examples of "downstream" work elements which will make direct use of the results
of the Task 6 analyses include the following:
:I
.:iIo....
9
SCOl'lo OF SElWICE
>- Establishment of system power requirements;
"> Determination of revenue requirements; and
>- Pro Forma financ.ial statements.
The objective of Task 6 will be to develop the required customer energy consumption (kWh)
and system peak load (kW) projections needed as input to other work activities.
/
Sub, Task A: Establish Energy & Power Requirements
In order to establish the future energy and power requirements of Aspen electric users,. including
those located in the potential Distribution Expansion Areas, the first work element to' be
performed will be to gather available data pertaining to area demographic and economic trends;
and the current and anticipated number of customers and customer energy usage levels (by
customer group and/or rate class) within the City's existing service area and in the areas under
consideration for acquisition by the City. Specific data to be collected arid incorporated into a
computerized data base, to the extent available, will include:
>- U.S, Census data such as population, households, commercial/industrial establishments
and employment by census tract for census years 1980, 1990, and 1994 (as available);
>- Data available from City sources, including numbe, of customers served by other
municipal functions (e.g. water service), voter registration by district, and the results of
other City sponsored studies dealing with municipal water service, land use studies,
highway planning studies, etc.; and
>- Input from City planners regarding growth trends by geographical region.
Using the above information for as many historical years as are available (ten years of historical
data would be preferred), to the extent practicable models will be developed that estabhsh
statistically valid relationships between City demographic and economic trends and the number
of electric customers and energy consumption levels. These models will then be used to project
electric energy sales (kWh) over the planning horizon,
Sub-Task B: Estimate Distribution System Losses
SVBK will develop estimates will of electric system distribution losses. It is anticipated thatthe
City Electric Department can provide SVBK with historical loss information which will be
utilized for projection of future distribution system losses. Further, owing to our understanding
that the characteristics of customer load and distribution syste'l' design parameters of the areas
under consideration for acquisition from Holy Cross ~are' sirrlilar to Aspen's system, it is
anticipated that Aspen loss data can be utilized for"projection of losses for the potential
distribution areas. To the extent data from Holy Cross is! available for this analysis, it wil'! be
used. In the event that such information is not available, use will be made of industry averages
,'elating customer mix and miles of distribution lines to distribution system losses,
10
SCOPE OF SER. VICE
Sub-Task C: Estimate Total Energy & POlVer Requirements
The forecasts of customers and energy consumption (kWh) will serve as the basis for estimating
total energy and power requirements for the City including the areas under consideration for
acquisition. Estimated distribution system losses will be added to the system sales projections,
thus arriving at projections of system energy requirements. Total system energy requirements
will then serve as the basis for projecting system load requirements (KW). System load
projections will be based on load factors developed from Holy Cross' and City data or, in the
absence of such infom1ation, on representative load factors from municipal systems which have
similar characteristics and comparable mixes of residential, commercial and industrial loads.
TASK 7 - REQUIRED FACILITY IMPROVEMENTS
In order to determine the impact of the proposed service area acquisitions on Aspen municipal
electric system customers, it is necessary to project the future costs associated with necessary
improvements to both the existing City distribution system and the acquired distribution system
expansion areas in order to insure the ability of the system(s) to serve both growth in customer
load and in order to insure ongoing provision of reliable electric service.
~"
It is likely that Holy Cross may refuse to provide load data on the basis of maintaining
confidentiality. Thus, one potential problem which may be encountered in evaluating necessary
power system improvements will be the determination of how much load'is presently supplied
to local Holy Cross customers, SVBK will request load data,however if this is not available,
it will be necessary for SVBK to make independent projections of existing system load on the
basis of customer types and typical usage patterns. Projections of customer energy consumption
and system loads will be developed in Task 6.
1
Once the existing load level is determined, the next step will be to make a projection of future
system load requirements including the Distribution Expansion Areas. It has been SVBK's
experience that residential development can be reasonably projected on the basis of available
land and current zoning. Future long-term commercial and industrial development will be
difficult to accurately predict and will be dealt with on a case specific basis.
Owing to our understanding of the nature of the areas being considered for acquisition, SVBK
believes that the City Electric Department may be able to provide information concerning the
costs associated with future upgrades of both the existing distribution system and the potential
expansion areas. To the extent possible, SVBK will utilize such information in projecting future
upgrade requirements and costs. Should such information not be available, we will determine
recommended facility improvements using standard utility planning criteria, After establishing
loads and suitable planning criteria, SVBK will evaluate the existing distribution systcm.
TASK 8 - POWER SUPPLY OPTIONS ^rND COSTS
I
Power supply costs represent O:le single largest cost component for a municipal system. The
City presently receives power from three supply sources: City.owned hydroelectric generation,
Western Area Power Administration ("W AP A"), and the Municipal Electric Agency of
t
II
\
,
.
t
l"h....
i
!
Ill,
.....
SU)f'E OF SERVICE
Nebraska ("MEAN".) From our discussions with the City, it is expected that these supply
sources will continue to be utilized to meet the City's overall electric requirements in future
years. Accordingly, SYBK will develop a projection of the City's future power supply costs
from these three supply sources, in addition to other sources identified as potential power supply
as a part of this task. Estimates of total costs will be used in the subsequent development of
revenue requirements and pro forma financial statements.
TASK 9 - REVENUE REQUIREMENTS
Sub-Task A: Base System Revenue Requirements Projections
The next step towards evaluating the economic feasibility of acquiring additional service, area
will be the determination of "Base System" revenue requirements. Tbe overall Base System
revenue requirements,which will be calculated for each year of the study period, represent the
amount of revenue the City would need to recover from its electric utility customers to meet the
fll1ancialobligations of operating and maintaining the City's exisiting electric system, In
general, such operating cost estimates will include power supply cost estimates, transmission
service cost estimates, distribution and transmission system operations and maintenance (O&M)
cost estimates, administrative and general cost estimates, allowances for renewals and
replacements, extensions and improvements (if applicable), taxes and debt service payments as
applicable. Based on this analysis, the average rates that would be charged to the City's existing
electric customers in future years will be developed.
Sub-Task B: Expanded System Revenue Requirements Projections
After development of the Base System revenue requirements calculated in Sub-Task A, it is
necessary to calculate the overall revenue requirements associated with the combination of the
Base System and the Distribution Expansion Areas under, consideration for acquisition. The
objective of this sub-task, therefore, is to determine the total acquisition, operating and
administrative costs of the City electric system with the addition of the system potentially to be
acquired from Holy Cross on a Pro Forma basis throughout the study period analyzed.
The sub-tasks to be performed in developing the Pro Forma Revenue Requirements for the
expanded electric system include the following:
>- Power supply cost estimates will be developed for the study period to meet the
anticipated load and energy requirements of the system.
>- Transmission service cost estimates will be developed for the study period to meet the
anticipated load and energy requirements.
>-
,
Transmissipn a!l,d Distribution O&M cost estimates will be developed for the study tem1
based up.,on' historical City experience.
>- Administrative and General cost estimates will be developed based on historical City
experience.
12
.
SCOPE orSER VICE
>- Renewals/Replacements and Extensions/lmprovements expense will be projected on the
basis of historical City experience.
Additionally, SYBK will develop an estimate of financing costs and bond sizing related to the
assumed issuance by the City of either taxable or tax exempt revenue bonds issued for
acquisition of the Distribution Expansion Areas from Holy Cross, Estimated financing costs
will include those costs related to underwriting, bond counsel and other legal costs, premiums
if any, original issue discount costs as applicable, bond rating fees, bond insurance, premiums,
trustee fees and Independent Consulting Engineer's Report fees. SYBK's determination Iof
estimated financing costs will'be based upon the total capital costs projected to be required to
acquire the Distribution Expansion Areas under consideration, taking into account capitaliz~d
interest, coverage requirements and fund balance earnings offsets.
/
A bond size analysis utilizing SYBK's municipal bond sizing software will be perfonnedto
estimate the eventual amount of borrowed funds required to finance acquisition of the
Distribution Expansion Areas, as well as the likely sources and uses of borrowed funds and the
annual debt service payments. A provision for debt service coverage will be included in the debt
service estimates.
The work product of this task will be the comparison pro-forma revenue requirements ~nd
average electric rates for continued operation of the Base System vs. expanding the City's
electric system to include the Distribution Expansion Areas. The results of this economic
feasibility analysis, in addition to the other factors to be considered within this Scope of Service,
will be used to determine the overall feasibility of acquiring the Distribution Expansion Areas.
Sub,Task C: Risk Analyses
Due to the uncertainties involved in predicting future costs, demands, etc" and the risks inherent
in any transaction, a risk analysis will be performed in order to create a boundary of costs with
for assessing the economic feasibility of the City electric system. The analyses performed by
SYBK in this task will be designed to quantify the risk associated with changes in such key
parameters as load forecast, valuation methodology, acquisition schedule, interest rates, bond
financing terms and inflation over the study period.
Task 10 - POLICY AND LEGAL CONSlDERATlONS
In conducting a comprehensive assessment of the merits of forming a municipal utility, a
number of important policy and legal issues must be addressed. These include:
>- Potential for voluntary purchase;
,>- ILegal authority to condemn;
:1-- Ability to oust;
>-
Yaluation;
I J
\;
SeO!'E orSERV/CE
>- Use of taxable or tax-exempt bonds; and
~
>-
Transmission access and pricing.
SVBK will prepare a summary briefing in preparation for a meeting with the appropriate City
representatives regarding these matters, for the purpose of appraising the City of current
evolving changes in the electric utility industry, regulatory agencies, and financial markets
which could affect the City's efforts to proceed and impact the cost of City electric system
operations.
TASK 11 ' STRATEGY FOR FUTURE ELECTRIC SERVICE
SVBK will identify the time elements and decision points related to each of the st~dy
alternatives. For each alternative, SVBK will develop a risk matrix, a critical path for the
implementation of the alternative, and strategies to overcome and/or avoid delays. The
deliverables associated with this task will include:
>- A detailed outline of each selected alternative;
>- Time frames and critical decision points to complete each alternative in a manner and
time frame consistent with the renewal provisions of the City's franchise;
>- A critical path model depicting go/no-go decisions, mjlestones, delay factors; and
>- Strategies to be employed by the City should it encounter delays or opposition,
TASK 12 - MEETINGS WITH CITY COUNCIL AND STAFF
SVBK will attend meetings with the City Staff upon completion of certain milestones to obtain
input relative to the analyses and initial findings, Additionally, the Consultant will conduct a
workshop for the City Council, the purpose of which will be to provide education ,and
information concerning the study and to obtain policy guidance.
This Scope of Service envisions a total of four trips to Aspen, for up to two SVBK personnel for
one and one-half days each.
TASK 13 ,DRAFT REpORT
.
Upon completion of the Scope of Work described hereinabove, a Draft Report will be prepared
for review by the City Staff. This report will contain a description of the approach and
methodology employed for each work task, a description ofthe analyses undertaken, and clearly
stated fmdings and recommendations (i.e. - an estimate of the range of cost which the City
would have to pay to Holy Cross in the event it condemns the Distribution Expansion Areas
under consideration, average rates and rate impacts which would result to Aspen ratepaye,rs as
a result of each of the options addressed in the study, etc.) which will flow directly from the
results of the analyses performed.
14
\
\1)
!
SCOI'E OF SERVICE
TASK 14 - FINAL REPORT AND PRESENTATION
Upon receipt of the feedback from the City Staff regarding the Draft Report, SVBK willprepare
its Final Report on the study and make a presentation to the City summarizing its tindings. The
Final Report and Presentation will also discuss the "next steps" for the City with regard to each
of the options addressed in the study.
OPTIONAL SERVICES
(
Should the City elect to proceed with one of the alternative courses of action investigated in the
preceding Scope of Service, SVBK would be prepared to provide continuing consulting support
to the City in furtherance of its efforts to best serve the electric customers of Aspen. [n
particular, SVBK could assist the City as follows:
>- Assistance in negotiations of modified franchise terms and conditions;
>- Preparation of a formal appraisal of the properties to be acquired; and
>- Assistance in condemnation proceedings.
Franchise Negotiations
SVBK has a multitude of experience in franchise negotiations and is fully prepared to assist the
City of Aspen in negotiating a new franchise agreement with Holy Cross, should the City elect
this course of action, SVBK would provide to the City in this regard, among other things,
assistance in the development and negotiation of a model franchise between the City and Holy
Cross and/or analyses of the short and long term impacts on the City and its citizens of differing
Holy Cross franchise offers.
Formal Appraisal and Condemnation Proceedings
Should the City elect to proceed with acquisition of the Distribution Expansion Area(s),a formal
appraisal report would have to be prepared concerning the properties to be acquired from Holy
Cross. This appraisal report would have to be prepared in adequate detail for submission to the
Court for use in condemnation proceedings. Ultimately, the controlling methodology for
determining "Market Value" and "Just Compensation" of the Holy Cross properties to be
acquired should reflect the City's legal counsel's and/or Special Counsel's requirements-to besl
support the City's position. SVBK would work in close coordination with Counsel to clearly
identify the most appropriate methodology and best approach for meeting the City's objectives.
Notwithstanding this, SVBK's appraisal would represent an independent finding of value in full
conformance with the Uniform Standards of the Professional Appraisal Practice 4USPAP),
General appraisal standards require consideration of three approaches when c'etermining market
value of a property, These include the cost approach, the income approach, and the market
approach. While some consideration should be given to all of these approaches, it is likely that
specific conditions will deem one approach significantly more important than the others. It is
15
i
.~
SCO!'E OFSERVICE
t
our bcliefthat thc cost approach, or the depreciated replaccment/reproduction approach will play
a primary role in the City's case. The income approach may also bc a factor. Accordingly,
SVBK would prcpare the appropriatc analyses utilizing both regulated and unregulated
considerations of income, For utility property, the market approach, or sale of comparable
propcrties is seldom a consideration since the salc of such properties are specific situation
scnsitive and adequate data is almost never available to fully consider all aspects of the sale.
As mentioned during our February 27 meeting with the City Staff, it is expected that partial.
taking and/or stranded investment may become issues. There may also be questions of Holy
Cross's ability to serve its other customers in the Aspen area in the evcnt of severance from Holy
Cross's system as a result of the City's condemnation action. SVBK would closely coordinate
with legal counsel to identify potentially affected propcrties. While it is premature to make any
definitive judgements based upon currently available infonnation, it is our belief that the "reason
for the occurrence" of any stranded investment or partial taking may have legal ramifications
with regard to the appraisal treatment. For example, if the stranded investment occurs, not
because of condemnation, but rather because of Holy Cross's franchise expiration, there may
be reason to argue that the City has no responsibility for the stranding. This will be dependent
upon legal interpretation ofthe Franchise Agreement. Likewise, if the property can be shown
to have very little value as a result of the loss of Holy Cross's franchise, there may be reason,to
argue that the City's partial taking is actually a benefit to Holy Cross in that the City is providing
value where no value would otherwise exist. We believe that these issues should be considered
prior to simply accepting blindly the responsibility for stranded and partial taking of investment.
Additionally, we strongly recommend the City fully consider and analyze potential stranded a.nd
partial taking investment values, as Holy Cross may mount an aggressive argument in favor of
including such value considerations.
Following completion of the appraisal, SVBK would assist the City and its Legal Counsel in
proceeding with litigation. Owing to the uncertainties in this process, it is impossible to propose
a specific scope of work regarding such activities at this time. However, SVBK is fully prepared
to provide assistance to the City in drafting deposition questions, sponsoring expert testimony,
assistance in the evaluation of depositions and expert witness testimony of the oppositipn,
preparation of trial exhibits or analyses, and any other assistance required under the direction
of the City's legal counsel.
.'\
Cc
16
.'
'\".
'"
e
e
SVBK CONSULTING GROUP
Engineers and Con..<ultants
April 8, 1996
Mr. Steve Barwick
Assistant City Manager
City of Aspen
130 South Galena Street
Aspen, CO 81611
Clicnt Matter: 0101
Subject: Proposal Re: Expansion of the City's Municipal Utility
Dear Steve:
In conjunction with our April 5, 1996 telephone conference, we have reviewed the scope of Qur
March 15, 1996 proposal concerning the subject project in order to identify ways to reduce ove,all
costs.
From our telephone conference, it is our understanding that the City can potentially utilize its local
engineer for project snpport thereby rcducing the need for SVBK staff to accomplish certain data
. collection and field activities. In this regard, we propose that the City's local engineer pcrform
portions of the following project work tasks:
TASK 4: REVIEW F ACILlTlES
Perfonnance of site inspections of local Holy Cross Electric Association distribution facilities
under consideration for acquisition by the City in order to identify and inventory such facilities
as to existing system configuration, equipment sizing, feeder loadings, and to generally
determine physical condition. In addition, the facilities would be reviewed to identify any
possible problems related to any potential physical severance of the facilities from Holy Cross.
TASK 6: ENERGY AND POWER REQUIREMENTS
Identification of major customer loads in the area(s) under consideration for acquisition, and
estimation of distribution system losses.
TASK 7: SYSTEM IMPROVEMENTS
Determination of improvements to the elcctric system under consideration for acquisition that
may be 'required to meet future load growth and insure reliable service to customers.
Determination of the timing and future costs associated with such improvements.
For your consideration, we have revised our proposed budget based upon the participation of the
City's local engineer in performance of the above work tasks. On this basis and with the appropriate
~
CHARLOnE () DENVER 0 OAlANOO
4643 SOUTH UlSTEA STREET. SUITE 1485 (j DENVER, co 80237.2862 Q TEL (303)843.0600 lJ FAX (303) 643-0529
e
e
.
Mr. Steve Barurick
Proposal Rc: Expansion of the City's Municipal Utility
April 8, 1996
Page 2
reduction in SVBK labor hours and expense~ we propose to undertake the subject study for a budget
amount of$49,719 1'1\13 direct "''(Fpnopo :',~
Please don't hesitate to contact me to further discuss our suggested modified scope. We look
forward to the opportunity of providing assistance to the City on this project.
Very truly yours,
~J11~
SVBK CONSULTING GROUP
Philip J. Movish
Executive Consultant
PJM:db
Enclosure
cc: J. Vumbaco
J. Corder
J. Worcester
~,
-
e
..
"l,
SVBK CONSULTING GROUP
Engineers and Consultants
June 12, 1996
Mr. Steve Barwick
Assistant City Manager
City of Aspen
130 South Galena St.
Aspen, CO 81611
Client Matter: 11200
Subject: Expansion of City's Municipal Electric Utility
Dear Steve:
1 have enclosed two executed copies of the Agreement you recently sent me regarding the subject
project. As required, I have also enclosed a Celiificate of Insurance which names the City as an
additional insured. Upon countersigning the agreement, please forward one copy to us for our files.
I have spoken with Clem Kopf regarding starting the data collection effort and I will contact Bill
Early directly to get our work effort moving.
Should you have any questions, please don't hesitate to call me.
V~oi11JL
SVBK CONSULTING GROUP
Philip J. Movish
Executive Consultant
PJM:db
Enclosure
~
CHARLOTTE 0 DENVER 0 OR~NDO
4643 SOUTH ULSTER STREET; SUITE 1485 0 DENVER, CO 80237-2862 0 TEL (303) 843-0600 0 FAX (303) 843~0529
407-843-3200 SUBK ORLANDO
729 P02/02 JUN 12'96 10:38
i"",~~ORD~ CERTIFiCATE
Th~a E. Ccrkhill lna. ASeOoy
~ B. Bumby Avenue
. Do>< 538891
de J'L 34853
~"
~~
Thoeaa E. Corkh111 '~6.8483'3
~_~ 4_o.1_~.'~.@::>-'HJjll_ ,;.....
lI'IIIVIIIP
THIS CE IFICA TE 1$ Ifill
DIll'" AND CONI'EJI8 11I0 IIlO
HOlOfl!. THIS CEATlt'IC6. tE I
At TIR THE COVIRAOE A
.CO~AilIEII A
Of LIABILITY INSURANCE
CO",I>...HV
A
Continental Oa.~&~~y Co.pany
COW"'-'IloIY
.
J'lorid. aatail '~eratica
~VBK Con.ult1ng aro"p,~nc. ~
Tha Lagend con.ult1ng 4rp.Ltd
201 s. Orange ~v.. '10~0
Orlando WL 3~801-3477
ca~'A~""
C
.'._-~. -'--.._-- - -~.-
COM,.......
o
COVEAAGES
TtllS IS yt:! CTRTrfV TUA T fl.H, POLICIES OJ" INSURANt::E l.ISTEO BElOW HAVE BeEN ISSUED TO tHE INSUAfO NAMEO AtIOUE FOA T~tfi POliCy PERtOO
INt~ICA T[D. NOTWITHSTANOING ANv AEGUlREMENT. TfAt.iII OR CONDITION or ANY' CONTAAC'r OR OTHER DOCUNEUT WITH flESPt:CT TO u"WICH THIS
Cf A TJFICA 1t MAY DE ISSUED C,1A !l.IlA or pfHr AIN. THllNSURANCf AfFOROED B'( J~f POl.lClfS of:SCRIBf;O HEREIN IS S\fIUtCT TO Al.L THE n:FlMS.
(l(C"LU~IONS AND CONDITiONS OF SUCw POIICIFS ll""Ul'S SHOwN MAV HAVE BHN REDUCEO BV PAlO (:LAI~S
. . -. _._---~ ...------
co
LT,
----r-"~ -----.
I GrtN"."L LLA.tUTY
A. X ({\lI.4~"R'IAI GIN~1U.1 LI....QI..IT'v' 131"74948
t,_.j j (I AIM!> WAOI" ~~ICJCCUA
j aWNfA'::;' 6. c.:mw'''^CTOlt"S "aT 1
'. ...-.- --.. 1---------
TYPf OF ".UtuaNC[
PCLlC'Y lllUMnJl:
fiOUCY Uf~TN'
QAttj"lIIIDOn'Yl
JIOUCY U,..TlO.II
DAft IMIII'DUtYY1
UMffO
09/:10/95
09/20/96
_"""4'1"""""TI.. .
f"C)Q T5 "' CONI',()" A.oo
t"(Ie;CftA.L . 4UV IlllJUM'"
.
tA,j(;H C"'I'l'tfW(:t
".2" 000,000.
'.1. 000 '..!l(),~"
.' 1. OOQ.,.oO_~.:.....
. l.!~~~!J~O."
. 50.~.!!.l!.-..
, 5.000.
1.000,000.
J'IU !~~1jj"~
"CO "l~ _ pw~1
"'l.Il0YGall.( 1J.AAlllTV
A. I.",,,, AUTO
ALL OWhitO AUlDS
"NY AUT (I
11317149-1.8
I
J
,
I
,
09;::lO/9!1
09/20/U
CQM.~ClllttlCJ,t.f 0"'11'
I
,
I
. "l~fO "UTO~
". r "ION OWNED ~UTOS
. I
, !j.t:HEouLI:U AuTOS
~Qn.Ir'IINJtl.\'
,...~
SOOl"YlIIIl.n.fIIV
jPIIt .....11
MOPBI""'" o.uu.C.il
.
CIAIUrQl l........ITV
,
AlITO 1....~~-~.~~1~~.'!'
0'",'" "A~ AUTO ONLV
lAC'" 4CClOIIv.T ,
.... ....-.
-L-__
I f...ll:c:tu: lJ,U3UYy
i U....lIRtLLA Hmw
I OTHfR TltA.q UUBAHlA f-o~
I WOlQ.fM caMfltllrU TlO.. 4IIIlP
t.....ptc...~ItI't..~LtT...
"'GaRl'GA Tf
EACH ~t;CUMf~1Il _
A4aM ~T(
I
8 h(~PP,O"AlnORI Lt;' f"lCl! 520..1'150
,....Il:TNfRSJfll(t(..UTIV~
('IJ'f'CFRS "'R~ ()(C~ I
--- r
DQle"ll'1lO1r (WI OH....ltONlJl.Dt:~TlOwaflJ~~W IJUI.
Cartificata Hold.~ liat.d .. addie100al Ipaur.d.
01/01/9'
01/01/97
.
Et.. II!. il!AhIIPlOVU
, co 000 _
. 500, OltO.
, 100.000.
,(.lTl1~
I
CERTIflCA TE HOLDER CAIlCELlATlON
ASPKlI...l lMOULD....Y 01' ""f. ~on.laQ(;""IqUC" _ ~D>1rU9M nit
........... D...YII TM~. ,....1&AQe1Q q-......., Wl.L 1iIIIOlUW0fl YO 11""'-
3Jl,.D.Ir'.~lilKI~.a....... TltfOI..outtIAIIIIII)TCI"I"NI.W'f'.
OUT........M~'f. """'''.''1JY
Of"'C..I~ E
..".
~
'.
City of A.p~
130 Bow a.l.na 8cr..e
....1'.." co 811i11
T
ACORD 1&-8 111961
JGN-II-96 MON 15:48 DEAN. INSURANCE
487 841 0901
P.02
[~~~,~~!!~!;'l~.III\lltmililiiifl~:!nt~.~II"i~rJil~i;!~4Jj.:~j:~~;i[q~~\~~i';(lj(!j~~il[:!1~1ij[i.!~i~~i'1'! "~~i(~~;~"j!:
pROOUCER Dean Insurance Agency, Inc THIS CIORTIFICATE IS ISSUED AS A MAlTER OF INFORMATION
POBox 3268 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER, THIS CERTIFICATIO DOES NOT AMEND. EXTI'ND OR
ALTER THE COVERAGE AFFORDED BY THE POUCIES BELOW.
cOMPANIES AFFORDING COVERAGE
..
'.
Orlando,
(407) 841-7111
FL 328023268
COMPf..N(
A UTICA NATIONAL INSURANCE COMPANY
INSURED
SVBK CONSULTING GROUP,INC,ETAL
205 E Central Blvd . #500
COMPANY
8 EVANSTON INSURANCE COMPANY
COMPA"'!'
C
Orlando
(,407) 872-1500
FL 32801
COI\IIPA,'JY
o
THIS IS TO CERTIFY lHA r THE POLICIES OF INSURANC€ LISTED BELoV-iHAvE' BEEN ISSU'EO"TO ''''H'E lNSURED'NA~iEO ABOVE FOR'THE POLICY PERIOD
INDICATED. NOTWITH9T ANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT oR OTH~R DOCUMENT WITH RESPE.cT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AffORDED BY THE POUCIEs DESCRIBED HEREIN IS SUBJECT TO ALL THE TEAMS,
EXCLUSIONS AND CONDITIONS Of SUCH POLICIES. UMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS,
CO
LrR
POLICY EFFEcTIVE POUCY EXPIRATION
DATE (MM/DDfN) DATE (I\.lUIDDIYY)
T'fPE OF INSURANCE
POUCY NUMBER
~NERAl L1ABILfTY
COMMERCIAL GENEAAL UAB1UTY
I CLAIMS MADE 0 OCCUR
_ DWNER'S & CONTRACTOR'S PRQT
-
/
/
/
~TOMOBllE LIABILITY
_ ~Y AUTO
_ ALL OWNED AUT09
~: SCHEDULED AUTOS
HIRED AUT09
NON,OWNED AUTOS
"
R1 GARAGe UAatUTV
ANY >\UTO
I
/ /
/
/ /
/
,
EXCESS L1ABIUTY
A'UMSRELLAFORM
H OTHER THAN W...1BRELLA faRM
A WORKERS COMPENSATION AND
EMPLOYERS'LlABIUrY
THE PROPAIETOFV ~'NCL
PARTNERSJEXECUnVE
oFFICERS ARE: > X EXCL
BOTHER
PROFESSIONAL
LIABILITY-
CLAIMS MADE
/
/
/
1957601
01/01/96 01/01/97
BJ'-102949
03/22/96 03/22/97
DESCRIPTION OF opeRA TIONSiLOCA T10~S/VEHICLESJSPEctAL ITtMS
:,:,',.,.'.
LIMITS
/
GENEAAL AQCREM TE S
PRODUCTS. COMP/O? AGG :$
pERSONAL & ADV lNJuAY :II
EACH OCCUAAENCS $
/
FIRE DAMAGE (Any ona fin:.) $
MEO EX? IArry one person) 5
COMBINED SINGLe UMIT .
OODIL y INJU~Y $
(P6rp;J~n)
BODILY II'JJURY .
(p~e.ocldenr)
PROPERlY DAMAGE .
/
AUTO ONLY - EA ACCIDENT S
OTf.-lER THAN AUTO ONLY:
EACH ....c:CIOENT S
AGGREGATE 2
/
EACH QCCURAHJCE
AGGREGATE
,
,
S
X I STA1UTOAYUMlTS
EACH AcooENT
DISEASE - POliCY UMIT
DISEASE:. EACH €MPLOYEE
0100 000
.500 000
,100,000
EACH CLAIM
AGGREGATE
RETRO DATE
1,000,000
1,000,000
7-1-92
NAMED INSURED TO READ: SVBK CONSULTING GROUP, INC;. AND LEGEND CONSULTING
GROUP, LTD, CERTIFICATE HOLDER INCLUDED AS ADDIrIONAL INSURED INCLUDING
THE CITY'S OFFICERS AND EMPLOYEES FOR WORK DONE BY THE NAMED INSURED, ..
The Ci ty Of Aspen SHOULD ANY OF THE ABOVE DE~CRI8ED f"OLlCIES eE CANCEL.LJ;D BEFORE. THE
. EXPI~~nOK DAn; THEREOF, mE ISSUlNO COMPANY Wilt ~NDUVOR TO MAl\.
,: --.l.Q DAYS WRIlTEH HOTICE TO THE CERTIFICATE I-IOl.DER NAMED TO nu: LEfT.
~~~~_ BuT FAILURE TO U,AIL gUcH NOTICE sHAU IMPosE 11I0 OBtlGJ}TION OR LIABILITY
Aspen CO OF ANY KINO UPON THE COMPANY. lTt> AGENTS onRErA.~SENTAT1VES.
AUTtlORlZEO REPRESENTATIVE ( ) , a ~
'APtiRQ~5,$:{W5i:iE'aLH;;,@!:;:};};!@i';H'1@illt;:11'i;~iil)!,\:M:::j~tiii;f!;1i:!;!':'i$"~if:::g!';!ijfi\1~1,~jt~gjl;jl)'1~~I!!;iiij((iqBl~]q&fi~TI~iN'jmt
ACORDm
CERTIFICATE OF LIABILITY INSURANCE ~~~K<:~~ DA;~7~;~;~
THIS CERTIFICATE IS ISSUED AS A MAHER OF INFORMA TIDN
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND. EXTEND OR
ALTER THE COVERAGE AFFDRDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
Ins. Agency
PRODUCER
Thomas E. Corkhill
20 S. Bumby Avenue
P.O. Box 53BB9~
ndo FL 32B53
las E. Corkhi~~ #264B48393
407-B9B-BB9~ ,,,No.
COMPANY
A
continental Casualty Company
COMPANY
B
Florida Retail Federation
SVBK Consulting Group,Inc. &
The Legend Consulting Grp,Ltd
20~ S. Orange Ave. #~020
Or~ando FL 32BO~-3477
COMPANY
C
COMPANY
D
COVERAGES
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE
INDICA TED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 15 SUBJECT TO ALL THE
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO TYPE OF INSURANCE POliCY NUMBER POliCY EFFECTIVE POliCY EXPIRATION liMITS
LTR DATE (MM/DDfYYj DATE (MM/DDfYYI
GENERAL liABIliTY GENERAL AGGREGATE '2,000,000.
A X COMMERCIAL GENERAL LIABILITY 13~77494B 09/20/95 09/20/96 PRODUCTS. COMP/OP AGG ,~,OOO,OOO.
CLAIMS MADE [!J OCCUR PERSONAL & ADV INJURY . ~,OOO,OOO.
OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE ,~,OOO,OOO.
FIRE DAMAGE (Anyone fire) 50,000.
MED EXP (Anyone person) 5,000.
AUTOMOBILE liABIliTY
09/20/95 09/20/96 COMBINED SINGLE LIMIT $1.,000,000.
A ANY AUTO ~3~77494B
All OWNED AUTOS BOOlLY INJURY
SCHEDULED AUTOS (Per person)
HIRED AUTOS BOOlL Y INJURY
NON-OWNED AUTOS (Per accident)
PROPERTY DAMAGE
GARAGE LIABILITY AUTO ONLY - EA ACCIDENT
ANY AUTO OTHER THAN AUTO ONLY:
EACH ACCIDENT ,
AGGREGATE
EXCESS LIABILITY EACH OCCURRENCE
UMBRELLA FORM AGGREGATE
! OTHER THAN UMBRELLA FORM ----.-.-.----.------'
WORKERS COMPENSATION AND WC STATU-
TORY LIMITS
EMPLOYERS' liABILITY '~OO,OOO.
El EACH ACCIDENT
B THE PROPRIETOR/ INCL 520,~7150 0~/0~/96 0~/0~/97 EL DISEASE - POLICY liMIT '500,000.
PARTNERS/EXECUTIVE
OFFICERS ARE: EXCL El DISEASE - EA EMPLOYEE '~OO,OOO.
OTHER
DESCRlPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIALITEMS
Certificate Holder listed as Additional Insured.
CERTIFICATE HOLDER
ASPEN-~
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED: BEFORE THE
EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
City of Aspen
130 So. Galena Street
Aspen CO 8~6~~
ACORD 25.S (1/951
__CC-C-"""'._',"",,,,",