HomeMy WebLinkAboutresolution.council.059-05 RESOLUTION NO. 5°)
Series of 2005
A RESOLUTION OF THE CITY OF ASPEN, COLORADO, APPROVING AN
AGREEMENT BETWEEN THE CITY OF ASPEN, COLORADO, AND AMEC EARTH &
ENVIRONMENTAL, INC., AND AUTHORIZING THE CITY MANAGER TO EXECUTE
SAID DOCUMENT(S) ON BEHALF OF THE CITY OF ASPEN, COLORADO.
WHEREAS, there has been submitted to the City Council an Agreement between the City
of Aspen, Colorado and AMEC Earth & Environmental Inc., of Lakewood, Colorado, to
perform rate analysis work for a possible stormwater utility program for the City of Aspen, a
copy of which agreement is annexed hereto and made a part thereof.
NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
That the City Council of the City of Aspen hereby approves an Agreement between the
City of Aspen, Colorado and AMEC Earth & Environmental, Inc., to perform the rate analysis
for a possible stormwater utility program for the City of Aspen, a copy of which is annexed
hereto and incorporated herein, and does hereby authorize the City Manager of the City of Aspen
to execute said contract on behalf of the City of Aspen.
Dated: ~ /! ~
~-~ Helffn Kalin Klan'de~ra, ~ayor
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
I~athryn S. K~, City C
TLO- saved: 7/27/2005-222-G:\john\word\resos\AMEC.doc
AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement made and entered on the date hereinafter stated, between the CITY OF
ASPEN, Colorado, ("City") and AMEC Earth & Environmental Inc., ("Professional")·
For and in consideration of the mutual covenants contained herein, the parties agree as
follows:
1. 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 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 Tasks 1 and 2 pursuant to this agreement shall be
completed no later than January 15, 2006 if Notice to proceed is issued by August 31, 2005. 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.
2. 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
$25,170 for Tasks 1 & 2 and if City Council approves, $96,220 for Tasks 3-6. 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.
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 $0.00
· 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 bill.
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,
~S1-97 l.doc Page 1
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. 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
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 proposes of set-off until such time as the exact amount of
damages due the City from the Professional may be determined.
6. Covenant Against Contingent Fees. The Professional warrants that s/he has not
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.
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 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, insurers, and self-insurance pool, from and against all liability, claims, and
demands, on account of injury, loss, or damage, including without limitation claims arising from
bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of
any kind whatsoever, which arise out of or are in any manner connected with this contract, if 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 act, omission, error, professional error, mistake, negligence, or other fault of the
-97 l.doc Page 2
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, or at the option of the City, agrees to pay the City or reimburse the City for the
defense costs incurred by the City in connection with, any such liability, claims, or demands. 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 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 repoffing periods shall be procured to
maintain such continuous coverage.
(i) Workers' 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 THOUSAND
DOLLARS ($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) disease - policy limit, and FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted
for the Workers' Compensation requirements of this paragraph.
(ii) Commercial General Liability insurance with minimum combined single
limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION
DOLLARS ($1,000,000.00) 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 contain a severability of interests provision.
~s ! -971 .doc Page 3
(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 ($1,000,00-
0.00) 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 ONE MILLION DOLLARS ($1,000,000)
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 insur-
ance, and any insurance carded by the City, its officers or employees, or carded 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 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 $150,000.00
per person and $600,000 per occurrence) or any other rights, immunities, and protections provided
by the Colorado Govemmental 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.
-97 l.doc Page 4
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 retum receipt requested,
to:
City:
City Manager
City of Aspen
130 South Galena Street
Aspen, Colorado 81611
Professional:
F. Robert McGregor
AMEC Earth & Environmental, Inc.
355 S. Teller St., Suite 300
Lakewood, CO 80226
13. Non-Discrimination. 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 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 by City. This agreement shall be binding upon all parties
hereto and their respective heirs, executors, administrators, successors, 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.
~S 1-971.doc Page 5
16. 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.
(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 govemed by the 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.
[SIGNATURES ON FOLLOWING PAGE]
~S 1-971.doc Page 6
ATTESTED BY:
CITY OF ASPEN, COLORADO:
WITNESSED BY:
By:
PROFESSIONAL:
Title:
Date:
~S 1-97 l.doc Page 7
Section 3.
EXHIBIT ~'a"
Tasks I and 2
Business Plan Process
In our experience, the process of business plan development is as important as the plan
itself, perhaps more important. The mechanical process of policy, data and information
development is important, but failure to develop sufficient or accurate information is rarely
the cause of a project to be halted. It is more often a failure of due diligence or community
engagement.
For example, some key reasons given in failure post mortems of unsuccessful stormwater
utility formation efforts include:
v' Not understanding the process
· " Cutting corners to minimize initial cost
," Failure to establish stakeholder support
v' Failure to identify and account for technical, political, legal or administrative hurdles
," Inadequate legal assessment of the authority for the subject jurisdiction to employ a
particular institutional form or rate structure
,/ Failing to work preemptively with the media to build the desired community message
· / Inability to focus the stormwater program on citizen felt needs
v' Highly inaccurate databases or lack of corrective process
,/ Failure to provide an effective and accepted user fee appeal process
· " Poor citizen or customer service
· " Illegal rate structures without rational nexus
· / Rate structures too complex to explain to the public and/or seemingly inequitable
· / Failure to understand political timing
Due Diligence
In our business plan process we place great emphasis on ensuring that due diligence is
exercised. The formal legal definition of "due diligence" is: a measure of prudence, activity
or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable
and prudent person under the particular circumstances. It includes the formulation and
Proposal for Stormwater Utility Business Plan Page 5
City of Aspen
execution of a plan with appropriate levels of investigation, establishment of facts,
estimation of future prospects, framing of assumptions and inherent risks, and
establishment of a plan of action-or refraining from action.
We organize our work in this type of engagement in four major tracks of effort. Due
diligence is important along the four "tracks" or major areas of concern:
,/ Program - Does the program make sense, is it compelling, is it within ability and
willingness to pay, does it meet citizen perceptions, is it action oriented?
Finance - Are legal tests satisfied, it is simple yet fitted to the local situation, does it
have the perception of equity, are proper steps followed, does it support the
stormwater program?
Public - Are there appropriate levels of involvement of key stakeholders, is the
general public handled correctly, is the media appropriately involved, is customer
service accounted for, are staff and political leadership elements accounted for and
handled appropriately?
Database - Is the database accurate within legal requirements, is there an appeals
process, is it maintainable within reasonable cost constraints, are anomalies
accounted for, is customer service appropriate and responsive?
The cost of appropriate due diligence is not insignificant but should be put in perspective.
Experience has shown that, should a stormwater utility fail for whatever reason, it normally
takes five to seven years for there to be a staff willingness and political forgetfulness
sufficient to make another attempt practical. The opportunity cost of failure is then five to
seven years' revenue. The cost to do a thorough job in due diligence along the four tracks
of work mentioned above is rarely more than two to three months' of a utility's service fee
revenue. In our experience, it is a prudent approach.
Additional benefits of appropriate due diligence on the front end include:
· / More efficient long-term database maintenance leading to lower costs and better
customer service.
Better initial and long-term public knowledge and cooperation leading to greater
acceptance, support and participation.
,/ A funding rate structure that matches and meets program needs, both short term
and long term leading to stable, adequate funding for program needs.
A stormwater program that can meet both the capital and operations needs of the
local community leading to better services and ability to meet regulatory demands.
Those communities that have cut corners in due diligence, even if the stormwater user fee
should go forward, often find them selves hampered in terms of their ability to manage the
Proposal for Stormwater Utility Business Plan Page 6
City of Aspen
database, meet customer expectations, solve flooding problems, meet regulatory needs,
and transform to meet changing program demands.
The City of Aspen has asked for proposals to cover, in two phases, a total of eight tasks.
Task 1 allows for a f~st orientation to the City, documents, and past efforts. Thus any final
suggestions for task modification will be held until this review is completed.
Having said that, in our preliminary review of these tasks we are convinced they cover well
the areas of financial and database due diligence. We have some additional ideas and
suggestions based on our experience which may enhance the process and bring about a
fuller consideration of public involvement and of cost analysis, program-driven rates, rate
structures, and organizational planning.
Support of Key Political Leaders and Stakeholders
Progress in any major area of endeavor in Aspen depends on the support of the political
leadership. In the past, stormwater has not been considered a high enough priority to
balance the potential risk in going forward with a needed new funding method. The desire
to avoid tax increases and the understandable aversion to increases in charges of any kind
often holds ideas like this back.
In the current situation, key political leaders have agreed to give the idea a chance to gain
momentum among the general public and key stakeholders. A two-step process has found
success in other places: (1) test the waters to gauge support while proceeding with utility
development, and (2) then if all goes well, complete utility implementation.
We believe that if the political leadership is convinced that the idea has popular merit they
will not withhold support. So it is vitally important to have a direct link throughout the
process with these leaders - to take their pulse, to gain their insight, to have their ear, to
know what will make them comfortable. AMEC has a team and process, designed to do
just that.
Since one key to success will be to convince political leadership that the stormwater user
fee is an idea whose time has come, and that there is genera approva of the idea from the
public, it is also crucial to obtain the vocal support of stakeholders and continue to gauge
the support of the general public. This is especially true in a close-knit community like
Aspen. A high percentage of people, when well informed of the needs and given a choice,
will pick a stormwater user fee above a tax increase. Part of our job is to assist the City in
making a compelling case for any funding change or increase, and to effectively
communicate that case to the community.
To build key stakeholders support (testing the waters of support), we have, in many cities,
used a proven process to take stakeholders through a series of about six meetings
designed to solicit input from them on a series of related issues concerning the stormwater
program focus and funding methods. Council would appoint the stakeholders, suggested
by staff. The purpose of this would be to develop a basic plan of action for activation of the
business plan, which will address the flooding, system maintenance, and water quality
Proposal for Stormwater Utility Business Plan
City of Aspen Page 7
priorities now facing Aspen. The citizen's group process then forms the backbone of the
project, culminating with a set of recommendations on program and financing. The
consultant team, staff and a citizen's group would work to find answers to the following five
questions:
What is the City currently doing in terms of stormwater management?
· / What are the stormwater related problems, issues, needs, and opportunities
currently being faced by the City?
,/ What stormwater program priorities should guide the City's stormwater business
plan in the next three to five years?
What specific program improvements should the City make and what will the costs
be?
What is (are) the best way(s) to pay for these program improvements?
While we do not include that process in our scope, we do recommend it and would be
pleased to work with the City in its development and implementation as part of the project.
Program-Driven Project and Rate
People are convinced to support a program when they can see a valuable return on
investment. Thus, it is important to know just what the improved program will do, what
problems it will solve, what it will cost, and what its worth will be. Solving flooding problems
will certainly gain the support of flood victims, and the general tacit support of those who
feel no one should be flooded if they bought a house with an expectation of flood safety.
However, the scope of stormwater management is much broader than just flood protection.
We must be able to quantify and qualify the need for program improvements as well as
infrastructure betterments.
For instance, there are expectations that the basic stormwater infrastructure will be properly
maintained to protect this valuable community asset. There are also expectations that
questions and concerns will be responded to in a timely and effective manner. There are
also issues related to water quality and the ability of the stormwater management program
to respond to local, state and federal water quality protection requirements. There is also a
growing recognition that stormwater runoff is a resource to be managed, not a nuisance to
disposed of and discharged mindlessly to local streams. Implementing modern stormwater
management techniques that create greenspace, enhance wildlife habitat, and improve
recreation will require careful planning and a well-focused program that is in touch with
community needs and desires.
Simple hand waving and general statements of need do not convince anyone. Thus, there
will be a need to estimate capital and remedial maintenance backlogs, routine maintenance
needs, needs for other types of services and programs as key elements of the business
Proposal for Stormwater Utility Business Plan Page 8
City of Aspen
plan. The need for program improvements must be illustrated graphically through pictures,
testimonies, and stories. A compelling case for change must be made - and that case must
take full advantage of both "right brain" and "left brain" approaches.
In any case, the program strategy need must drive the funding concept. The need for a
utility must spring directly from a detailed consideration of the program needs and the
compelling case. This has proven successful in our experience and leads to our overall
approach.
Overall Utility Approach
Regardless of the use of feasibility studies, the AMEC Team concept of implementation of a
user fee follows the previously cited four "tracks" of activity. Figure 1, on the following page,
shows an overall flow chart for utility implementation.
In Figure 1, a typical stormwater utility development follows the four interrelated "tracks" of
activity. It is crucial that these four tracks are coordinated and timed to occur as shown.
While there are almost infinite variations on this schematic figure, the key activities within
the figure are all important and cannot, or should not, be skipped.
The Public Track goes through four basic phases: planning the program, stakeholder
involvement and general public education, implementation campaign, and short and long
term customer service. Often there is a citizen's stakeholder group involved to assist in
policymaking and to serve as eventual proponents of the utility. Stormwater utilities are
rarely infeasible technically, and legal constraints can usually be overcome. It is in
development of public, stakeholder, and political support that the difficulties often arise.
Thus the Public Track is often THE key to success of the utility.
The Program Track builds on basic problems, needs and goals through a setting of program
priorities, laying out a program for a three to five year period, a costing of that program, and,
finally setting up implementation steps. The program strategy must drive the final rate and
rate structure, although due regard must be given for the customer's willingness to pay for
stormwater given other demands on the limited resources of the citizens. The program is
key; it is what sells the utility concept. But we must also resolve other issues as part of the
utility development process. What is the bang for the buck? How do we convince citizens
and stakeholders of the need for an alternate funding source? How do we craft a
stormwater program that meets the needs of the City without exceeding the available
funding?
Proposal for Ston'nwater Utility Business Plan Page 9
City of Aspen
Figure 1: Utility Implementation Approach
Public Program Finance Database
I
DEFINE PUBLIC [ PROBLEMS, NEEDS
INFO& ED PLAN I AND GOALS
STAKEHOLDERS H PROGRAM
& GEN EDUCATION PRIORITIES &
OBJECrIVES
FUNDING
LEGAL ISSUES
DATABASE
POLICY ISSUES
l FUNDING ~ DATA, MATERIA~
POLICY ISSUES & INFORMATION
COST OF SERVICE ~l~ RATE STRUCTURE ~ MASTER
ANALYSIS I ~ ri ANALYSIS I ' ' I ACCOUNTBILLING DATAFILE&
ORGA ONAL RATE STUDY & BILLING SYSTEM
CASH FLOW DEVELOPMENT
ANALYSIS
~l~ UTILITY
IMPLEMENTATION IMPLEMENTATION RATE
CAMPAIGN STEPS ORDINANCE
I 1
UTILITY IMPLEMENTATION & CUSTOMERSERVICE
INQUIRY AND
COMPLAINT
RESPONSE
1
The Finance Track sets some basic financing policies first. Then, based on program input,
it goes from development of a rate structure to meet the program needs, to a rate study and
cash flow analysis and, finally, to a rate ordinance. In order for this track to be successful
you need both strong financial background and experience and the practical experience that
comes from actually setting up and managing a stormwater utility. Over the past thirty
years our team members have guided the development and implementation of more than
one hundred stormwater management programs as utilities, special service districts or
authorities, or integrated components of broader water resource management programs
that include water supply and/or wastewater treatment.
The Database Track has three main purposes: to develop the master account file, to
develop a mechanism to deliver the bill to the customer, and to properly integrate the two.
Inherent in this work are myriad decisions on who to bill, how to arrange certain properties
within the account file, etc. Our team includes a dedicated group of specialists who prepare
master account files, data sets, and billing integration protocols.
Specific Tasks
The City of Aspen has asked for a set of specific tasks, some in great detail. The AMEC
Team will respond to these tasks as requested to allow for comparison of approaches.
However, we do have some suggestions on approach that may be appropriate to this
Proposal for Stormwater Utility Business Plan Page 10
City of Aspen
project that would streamline some parts and may also strengthen the ability to gain City
Council approval.
Specifically we suggest:
A more purposeful development of a compelling case for change and the program
elements to support it
· / The use of a citizen's group to develop key concepts and support
The program suggestion has been included within the scope we propose. Due to its
expense the stakeholder group process has not. The additional cost for adding a special
stakeholder process may be on the order of $25,000 for five to seven meetings of a group.
Task I - Project Orientation
AMEC has a standard letter request for
information. We will initiate the request with
a phone conversation to discuss the types
of information that may be available,
general City organization, and other
overview topics. We will then follow up with
a letter request for information.
As part of the initial meeting we would like
to be able to receive for review a number of
Task I - Project Orientation
Prepare initial request for policy, financial,
operational and statistical data needed prior to
first meeting with City representatives.
Meet with City representatives to discuss
policies regarding stormwater activities,
finalize project schedule, and collect available
data.
documents to give us the necessary background and jump start to ask pertinent questions
in later discussions. The following is a list of materials that we need to begin our work on
the utility. The list will however serve as a starting point and as we learn more additional
documents will be reviewed. The documents and types of documents we will need include:
Organization charts with points of contact for key departments
Manpower and equipment listings for all stormwater related functions
Estimate of funds spent on stormwater
,," City Budget and Annual Report information
City overhead allocation information
Information on any outstanding stormwater bond Issues
· / City Capital Improvement Plan for stormwater projects
,/ Any existing information on complaints
Proposal for Stormwater Utility Business Plan Page 11
City of Aspen
," Copies of stormwater related ordinances, regulations and written policies (zoning,
subdivision, water supply, erosion control, etc.)
Copies of checklists and other guidance commonly used by plans reviewers (official
or not)
Written development and design policies commonly used by the City staff
· " Any existing information on parcels, tax database descriptions, utility billing
information, customer databases, etc.
· / A copy of a typical utility bill and tax bill
Description of available mapping, GIS coverages, databases, hardware, etc.
Since much of the information we request will be bulky or one-of-a-kind we will review the
information in your offices and make copies of only what is necessary for our efforts. We will
do this ahead of the first meeting, the day before.
To prepare to meet with City Council AMEC will discuss the program needs, issues, costs,
etc. with City staff to develop a compelling case for change and for a user fee, if one exists.
This is critical in convincing both political leaders and other key stakeholders of the need to
go forward and becomes the basis for selling the program to the public.
Task 2 - Institutional Considerations
The AMEC Team (including our legal
counsel) will work with City staff to develop
pro-con analysis of key institutional and
governance options. Legal counsel would
participate in this Task by identifying all of
the legally feasible institutional
arrangements that should be considered
initially by Staff, a citizens task rome (if
Task 2 - Institutional Considerations
Identify potential institutional arrangements for
administering City stormwater activities. These
could include (a) status quo arrangement, (b)
stormwater utility, (c) flood control district, or
(d) some other arrangement.
appropriate) and finally City Council either presenting to it all possible arrangements or
some number of the most desirable from Staff's and / or Task Force's point of view. It has
been found that elected officials are usually more supportive of these arrangements if
citizens have had an opportunity to have input into the process especially if City Council
would adopt a fee structure without the vote of citizens.
In addition to identifying these arrangements, the AMEC Team would document the factors
of each that distinguish one from the other. Specifically, among other considerations, the
focus would be on what is desired to be accomplished (construction, maintenance,
regulatory enforcement and regulatory compliance) and the various avenues to fund those
tasks. In that way, Staff / Task Force can focus on what are the most important elements of
an arrangement and thus make the selection process easier. Usually, this takes the form of
a grid for easy review and comparison.
Proposal for Stormwater Utility Business Plan Page 12
City of Aspen
Eventually, from a functional standpoint, Aspen will probably want to manage all its water
resources in a coordinated fashion. Demands on the Roaring Fork for diversion, stress on
Aspen's water supply, and Iow stream flow make proper control of runoff and reduction of
urban pollution increasingly important as Aspen and Pitkin County grow. It is important to
both keep it as simple as possible given the small size of the City, but not to foreclose on
opportunities for regional cooperation. This is important both for potential economies of
scale in stormwater programmatic efforts, and because runoff knows no political
boundaries.
AMEC is currently working with both Arapahoe and Douglas Counties in development of
options for institutional arrangements in a complex multi-party setting. In these settings, as
in Aspen, it is important to differentiate the le.qal entity from the qovernance of stormwater.
For example, it might be advisable to create an enterprise fund, while retaining essentially
the same governance structure. However, if there appears to be a natural linkage with other
water entities in the area, then options should, and will, be explored.
At the end of these two tasks AME¢ will work with City staff to develop a presentation in
workshop format that will be presented to City Council about the program needs and how a
user fee might be structured to meet these needs.
Schedule
The overall project schedule showing major tasks is shown in the table on the following
page.
Proposal for Stormwater Utility Business Plan Page 13
City of Aspen
"E
5ect/on 4. Tasks 3 - 7
Task 3 - Regulatory Requirements and Legal Review
To some extent some of these tasks are
included in Task 2. AMEC's legal counsel
would meet with the City's legal
representatives and, to the extent that the
City's legal representatives wish, would
brief them on both the Colorado statutes
applicable to the arrangements being
considered as well as drainage law in
general. In addition, legal counsel would
update them on the common law
applicable to drainage and Colorado
statutes in regard to governmental
immunity as applicable to drainage
improvements.
Task 3 - Regulatory Requirements and
Legal Review
Meet with City legal representatives to identify
elements of current state statutes that will
directly affect proposed entity's operational,
financial and bonding requirements.
Assist City in developing goals and objectives
for stormwater entity based on requirements
imposed by Colorado statues,
· Assist City in drafting a proposed stormwater
ordinance. Final ordinance will be prepared by
the City Attorney's office.
Finally, AMEC's legal counsel would assist the City in fleshing out the permitted goals and
objectives of the arrangement selected. Such a consideration would include identification
and analysis of Colorado statutes and the City of Aspen's adopted ordinances and
regulations applicable to the goals and objectives identified. Once this has been completed,
a draft ordinance would be prepared for consideration by the City Attorney's office.
Task 4 - User Fee Bases
There are about seven or eight fairly
common basic rate methodologies used
in the United States. Each one was
developed in an attempt to bring about,
or reflect, specific stormwater program
objectives and philosophies. In some
cases the methodologies were simply
reflective of the form of available billing
data, and were deemed suitably
equitable to pass legal muster.
While Aspen includes three bases for
comparison, in fact, there are several
other bases that may carry considerable
weight given Aspen's unique housing
situation and mountain setting.
In the end the rate methodology, and in
fact the complete rate structure
Task 4 - User Fee Bases
· Review possible bases for a standard stormwater
billing unit including:
· Total Impervious Area
· Average Impervious Area for Single Family
Residences
· Average Total Area for Single Family
Residential Units
Submit report describing these billing unit bases
and their applicability to stormwater user fee
development. Each method will be evaluated in
terms of data availability, equitability of user fees
and ease of conversion of data into Stormwater
Master Billing Database.
Assist City representatives in determioing which
methodology best meets utility goats and
objectives.
Proposal for Stormwater Utility Business Plan Page 15
City of Aspen
including possibte secondary funding methods and rate modification factors), will be a
compromise among the various factors, and will pass the "rational nexus" test reflecting cost
causation for program elements both now and in the future.
AMEC will develop a set of objective criteria by which to evaluate the various methods, and
variations on them. We will initially interview staff (and citizen's group if appropriate) to
determine which factors are of greatest perceived and real importance. We will then frame
these factors into an analysis process and quickly assess a sub-set of options. We will
develop a report, suitable to meet due diligence standards for Colorado, which lays out both
the overall rate structure and user fee basis, as these two are intertwined.
Task 5 - Billing Database Development and Implementation
AMEC will collect and
analyze available parcel,
account, permit, imagery,
land use, planimetric, and
impervious area data from
the City and the County.
The goal of this analysis will
be to develop a set of
algorithms which determine
impervious area on each
non-residential parcel, and
which determine the correct
class (for example, large,
medium, or small) for each
single-family residential
parcel.
Done properly, this analysis
will feed into the
development of the billing
database such that the
billing database is crafted
from the rate structure (of
task 4), the land use of
each parcel, and the
algorithms developed in
step 1 of this task. The
algorithms themselves will
rely on one or more
variables "mined" from
source data including the
Assessor's information.
Special classes of
properties, including
Task 5 - Billing Database Development and Implementation
Review available land use data necessary to populate stormwater
utility database. This data may be obtained from the County
Assessor's office and City IM, Permits and GIS systems.
Develop billing database including the following components:
Count of all land parcels tied to water meters in current GIS
and Permits database.
Number of land parcels within the City limits.
Customer bills matched to parcel records.
Land use codes and descriptors.
Impervious area on County Assessor/City parcel records.
Plat maps and aerial photo data.
Sample physical address/water meter address.
Residential properties with and without garages.
Billing rates.
identify unmatched property records and unmatched water billing
records. Develop method for City representatives to identify non-
matched properties and accounts.
Determine statistically significant podion of average
impervious area for residential land parcels. Residential
billing basis will be developed as follows:
Random samples of each residential class will be drawn and
statistically analyzed. Average, high, and Iow impervious
areas will be determined along with standard deviations in
order to conduct statistical tests.
Statistical tests will be conducted on each residential class to
determine if each customer class can be billed as a separate
residential customer class.
A report on findings of residential customer classes will be
prepared.
Identify special billing circumstances. Generally these
circumstances include (a) more than one customer occupies
individual parcel of developed land (e.g. apartment building), (b)
one customer occupies more than one parcel of contiguous land
(e.g. large industry), or (c) developed parcel of land is not
presently a utility customer (e.g. parking lot).
Meet with City representatives to review and finalize the Master
Billing Database. The database will include at least the basis of
billing appropriate to each customer (e.g. impervious area
billable, applicable number of equivalent residential units, or
some similar measure) and new stormwater only customer
accounts.
Proposal for Stormwater Utility Business Plan Page 16
City of Aspen
condominiums and townhomes, may be dealt with in different ways to address the
parcel/account/land characteristics differences in a fair and maintainable way.
Once the algorithms are developed, they will be tested against a sampling of measured
properties to ensure they appropriately predict the fee associated with each parcel. The
algorithms wilJ be adjusted to most accurately predict each pamel's fee, and statistical
summary information will be produced.
Once each parcel or group of parcels has a fee associated with it, AMEC will perform a
matching routine to match each parcel or group of parcels to one or more existing accounts
in the utility billing system. This will result in many parcels that associate with exactly one
account, and many parcels that associate with either no accounts or more than one account
(we refer to these as "not 1 to 1"). With help from the City staff, AMEC will establish policy
and take steps to assign the stormwater fees for each parcel to one or more than one
existing account. The table shown below depicts generally how this would be done, but the
exact approach will depend on the available data, the rate structure employed (from Task
4), and the billing policy decisions that are yet to be made.
Proposal for Storrnwater Utility Business Plan
City of Aspen Page 17
I Parcel Possible Approach
Type
Single Family Detached Residential
Determine residential class from gross
lot area, garage existence, and heated
square footage of home.
Duplex or Triplex
Determine residential class from gross
lot a~ea, garage existence, and heated
square footage of home.
~ondominium Community
Determine aggregated fee for entire
community from imagery, gross lot
areas, and assessor data.
ownhome Community
Determine aggregated fee for entire
community from imagery, gross lot
areas, and assessor data.
Ion-Residential
Determie fee for entire parcel from
imagery, gross lot area, and assessor
data.
Result
Match of
Parcels to
Accounts
Action
Correct fee for each Bill existing
single family 1 to 1 account.
detached parcel
Determine correct
Not 1 to 1 ratepayer.
Correct fee for each Bill existing
duplex or triplex 1 to 1 account.
unit.
Determine correct
Not I to I
ratepayer.
Correct aggregate
fee for each
condominium
community.
1 to I Will not happen.
Not 1 to 1
Not 1 to 1
Correct aggregate
fee for each
townhome
community.
Correct fee for each
non-residential 1 to 1
parcel.
Not 1 to I
Assign
proportionate fees
to each unit or
develop other
method to capture.
Will not happen.
Assign
proportionate fees
to each unit or
develop other
method to capture.
Bill existing
account,
Proportionate fees
for tenants, or one
bill to owner.
Proposal for Stormwater Utility Business Plan
City of Aspen
Page 18
Task 6 - Long Range Financial Plan
The long range financial plan is
essentially a rate study and cash flow
analysis. Both of these are necessary to
satisfy legal due diligence in
establishment of a user fee rate in
Colorado and to insure the program is
well planned for.
It would be unusual for the program to
actually follow the details of the plan
beyond the first five-year period as things
normally change significantly from initial
assumptions by that time.
The basis for the fee must be the
stormwater program. Therefore we will
work this task in tandem with the
previous one to insure the fee basis
reflects program needs. The requested
services did not include a thorough look
at just what "stormwater" means to
Aspen and a detailed cost of service
analysis. We would look at that as part of
this task first and then tailor the rate
structure to meet the program objectives.
That is key.
We will (1) look at key problems, issues
and needs, (2) establish program
priorities, and (3) lay out a five year program in
look at rate structure.
Task 6 - Long Range Financial Plan
Determine stormwater entity revenue requirements
for projected ten-year study period. Revenue
requirements will include:
Operation and maintenance expenses.
Routine and major capital expenditures
(asset management program).
Proposed debt service on bond issues.
Other cash obligations
Allocate revenue requirements to various customer
classifications on the basis of relative responsibility
of each classification for service provided as
determined from customer classification units of
service billing units and quality issues.
Design schedule of stormwater user charges to
equitably recover revenue requirements from
customer classes.
Develop financial planning spreadsheet to show
ability of projected stormwater user fee revenues to
meet annual revenue requirements. Debt financing
will be reflected to meet any needs that are not
conducive to cash funding. A projected cash flow
statement will show timing and magnitude of any
anticipated changes in user charges and timing and
magnitude of any indicated bond issues.
Meet with City representatives to discuss financial
plan findings and finalize long-term financial plan.
detail and ten years in less detail, and then
From that AMEC will develop a cost-of-service analysis that will meet program objectives
and goals within the revenue capacity of the City's fee. In so doing we will determine which
components of the program should be user fee based, which are handled by secondary
funding, and which by other means. For ease of understanding and use costs will be
developed in a format compatible with the City's budget document and comprehensive
annual financial report.
The costs are then divided among rate payers on the basis of the rate methodology
determined in Task 4. It is important to both attain relative equity and to have a simple
enough rate method that it can be easily explained and maintained in the face of changing
development conditions. Many consultants have developed overly complex rate structures
only to have the public reject them as toe complex or the City rue the day they agreed to try
to maintain complex algorithms year after year. We should not be as complex as we can be.
Proposal for Stormwater Utility Business Plan Page 19
City of Aspen
Costs and rates will be placed in AMEC's rate analysis spreadsheet to allow for easy "what
if" analysis for changing program concepts, rate methods, credits, growth assumptions, etc.
Debt and secondary funding will be included to demonstrate the impacts of various
decisions. Recommendations will be made and presented in a draft and final rate study.
It will be important throughout this process, if appropriate, to both keep council members
appraised of key information, and to bring a stakeholder's group into the policy development
process for some key decisions. The stakeholder process is not included in the cost
estimates, as it was not indicated in the scope.
Task 7 - Reports
AMEC will provide one draft and one final report
for each of the deliverable products.
The deliverable products will be:
A preliminary program assessment
report detailing the problems, needs and
issues and the program priorities. It will
then lay out a proposed program concept
for five and ten years. It will also include
the legal assessment of Task
Task7-Reports
Provide draft reports to City
representatives for review and comment.
Report will summarize study findings,
procedures, assumptions and
recommendations.
Finalize study report and provide 25
copies to the City.
A preliminary rate structure and fee basis analysis which lays out the basic rate
structure to support the proposed program concept, including assessment of the
various bases for the fees.
rate study, cash flow and cost of service analysis which is the final rate study.
· / A final report which includes the final versions of the previous reports with
coordinating language laying out the total process.
Task 8 - Support Services
The AMEC Team, AMEC local staff and Denver
resources are skilled at meeting with political
leaders and presenting key information. We will
work with staff to develop and then keep updated
a short slide show of the process and compelling
case for change.
In addition other AMEC team members are noted
national and international speakers on stormwater
funding. We have access to all national database
findings both private and publicly available and
can present national trends and costs.
Task 8 - Support Services
Having a professional available to
attend meetings such as City Council
Meetings and Workshops, Public
Hearings, and Press Conferences.
The presentation of available national
stormwater data. This presentation
should give insight into practices,
policies, and rates of stormwater
utilities across the country.
Proposal for Stormw~iter Utility Business Plan Page 20
City of Aspen