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HomeMy WebLinkAbout2009.08.10 Council Workshop Packet AGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 p.m. August 10,2009 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) State Energy Program Grant and Loan Program—Process Water Reuse Facility: 1. Agenda Report from Robert J. Alberts,Public Works Director dated August 5, 2009. 2. Vicinity Map. 3. Project Outcome and Goals by Troy Green. 4. Department of Ecology Letter of Support. (b) Authorization to Approve Meter Reading Contract: 1. Agenda Report from Jim Chase, Finance Manager dated August 4, 2009. 2. Contract for Meter Reading and Related Services and Exhibit A. 3. Memorandum to Rick Terway, Administrative & Community Services Director and Stan Strebel,Deputy City Manager. (c) Capital Improvement Plan: 1. Agenda Report from Gary Crutchfield, City Manager dated August 4, 2009. 2. Proposed Capital Improvement Plan 2010-2015 (Council packets only; copy available for review in the City Manager's office, Pasco Library or on the city's website at ht!p://www.pasco-wa.gov/Generallnfo/FinariceAccountin ). 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT REMINDERS: 1. 12:00 p.m., Monday, August 10, Pasco Red Lion -Pasco Chamber of Commerce Luncheon Meeting. ("Community Services Awareness Luncheon") 2. 10:00 a.m., Tuesday, August 11, Senior Center — Senior Citizens Advisory Committee Meeting. (COUNCILMEMBER TOM LARSEN, Rep.; BOB HOFFMANN, Alt.) 3. 3:00 p.m., Thursday, August 13, 7130 W. Grandridge Blvd. — TRIDEC Executive Committee Meeting. (COUNCILMEMBER MIKE GARRISON) 4. 7:00 p.m., Thursday, August 13, Transit Facility — Ben-Franklin Transit Board Meeting. (COUNCILMEMBER MATT WATKINS,Rep.; MIKE GARRISON, Alt.) 5. 8:00 a.m., Friday, August 14, Franklin County Courthouse — Franklin County Law & Justice Board Meeting. (COUNCILMEMBER BOB HOFFMANN,Rep.; MIKE GARRISON, Alt.) AGENDA REPORT NO. 25 FOR: City Council August 5, 2009 TO: Gary Crutchfiee anager FROM: Robert J�4 s, Public Works Director Workshop Mtg.: 08/10/09 Regular Mtg.. 08/17/09 SUBJECT: State Energy Program Grant and Loan Program- Process Water Reuse Facility I. REFERENCE(S): I. Vicinity Map 2. Project Outcome and Goals by Troy Green 3. Department of Ecology Letter of Support II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 08/10: Discussion 08/17: MOTION: Authorization to submit a grant application for the State Energy Program Grant and Loan Program and commit $250,000 from the Process Water Reuse Facility. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) Community Trade and Economic Development (CTED) announced a call for projects for the State Energy Program Grant and Loan Program. The City operates the Process Water Reuse Facility (PWRF) which takes vegetable waste from four food processing plants. Several years ago the City held discussions with Energy Northwest to complete an assessment of how much energy can be generated by the vegetable waste at the reuse facility. This project did not move forward. V. DISCUSSION: A) The State Energy Program Grant and Loan Program allows agencies to apply for funds to be use for energy demonstration programs. Staff believes there are opportunities to show that energy can be taken from vegetable waste to help offset some of the electrical costs at the PWRF facility and reduce the solids of the waste water. The project would cost $500,000. The City will apply for a $250,000 grant matched with $250,000 from the PWRF. The grant funds and project selected must be used and completed by the end of 2011. Staff believes that there is a high probability that a demonstration project will reveal a significant benefit to the City which would justify moving forward with a larger project that would be funded by future grants. The project also may be eligible for the energy efficiency credit program. B) Troy Green of J-U-B Engineers, Inc. will make a presentation to Council on what the demonstration project would entail and will also submit the application on the City's behalf. Staff requests Council's authorization to apply for the $250,000 grant with a commitment from the City of$250,000 for the project. 4(a) fix; y •.i - + '�° cn k tikr� x �a x i! t �-°SCE. " ~ 3� „ _• •V r6 trr v�'+r-��;`..'v:r?.4.t:V+�kb..E..-• 4".(:.Si. {4 2 3• nm MN, ' •v l s, .b x '� ar Julissa Valdez From: Troy Green [tmg @jub.com] Sent: Wednesday, August 05, 2009 12:36 PM To: Bob Alberts Subject: CTED Application Here is some information to help you on your Council packet. The Planned Project: Pasco Reuse Facility — TIREPower Anaerobic Digester Demonstration Project The City of Pasco operates an industrial process wastewater treatment facility that currently receives food process wastewater from Pasco Processing (formerly JR Simplot), Reser's Fine Foods, Twin City Foods and Bybee Foods. The existing facility annually receives over 1,000 million gallons of high organic strength process wastewater. The Reuse Facility pre-treats the incoming flow via high rate aeration and mixing lagoons prior to applying it to adjacent land application spray fields at agronomic rates. During the winter, non-growing season, the process wastewater is stored in a multi-million gallon lined storage pond. The proposed project is to construct and demonstrate a pilot scale TIREPower digester to prove its effectiveness treating food process waste water. The digester will be constructed at the City of Pasco Reuse Facility and be operated and studied for approximately 18 months. The goals of this project will be to evaluate the effectiveness and efficiency of the TIREPower design treating food process waste water. The system would be sized to treat a portion of the process waste water received at the reuse facility and if proven effective, could be expanded to treat the entire flow stream. Other food processing facilities throughout the Northwest would also be candidates for implementation of the technology. The expected outcomes and goals from the demonstration digester project are to: • Prove the Pasco Reuse Facility and other food processors that currently use conventional aerated treatment processes can significantly decrease their current electrical demand by pre-treating the organics with anaerobic digestion. Total volatile solids (TVS) and chemical oxygen demand (COD) are two key parameters used to describe the ability of an anaerobic digester to stabilize an organic waste and reduce its strength. The percent removals of these two parameters are directly related to the amount of energy produced by the digester, the improvement to water quality, and the reduction in odor causing compounds. Removal efficiencies of 70% to 90% are typical of other commercially available anaerobic digester technologies treating food process wastewater. At the Pasco Reuse Facility, decreasing the organic load with anaerobic digestion will lower the overall aeration requirements currently needed for odor control and pre-treatment. Reducing the organic load to the land treatment system will also lessen the potential for anaerobic soil conditions that can cause leaching of salts through the root zone potentially impacting shallow groundwater, • Reinforce that odors can be reduced by incorporating anaerobic digestion prior to open air storage lagoons. The storage of high organic strength waste has created nuisance odors at the Pasco Reuse Facility and other similar systems throughout the region. The JR Simplot processing waste treatment facility in Moses Lake recently installed a 20 million gallon covered lagoon digester which has proven to be very effective controlling odors. It is proven AD is effective for odor control, but cost and efficiency must be improved before adoption of the process becomes common place. Existing commercially available anaerobic digestion technologies used on food process wastewater are typically low rate, inefficient systems such as covered lagoons or completely stirred tank reactors with detention times in excess of 20 days; or very complex retained biomas systems such as fixed film or upflow sludge blanket technologies. These systems with their high capital and/or operational costs, or complexity have impeded their widespread adoption in the food processing industry. The TIREPower design through its efficient and simple design could become an affordable anaerobic digester option available to the Pasco Reuse Facility and other food processors throughout the State of Washington, Oregon and Idaho. 1 • Generate a methane rich biogas that can be collected and used as a renewable energy supply. • Demonstrate the simplicity of operation and maintenance. The prototype digester will allow optimization of the design and verification of its capabilities to fill a significant void in the list of available technologies for cost-effective treatment of process waste water flow streams. A submersible chopper pump will be installed in the existing receiving tank at the Pasco Reuse Facility to pump untreated process wastewater to the pilot digester. The pilot digester container will include the construction of bolted steel digester tank filled with approximately 3,000 to 4,000 used automobile tires. The tank will be constructed with a bottom sump and chopper pump. From the bottom of the digester, the digester content will be pumped to be either wasted (effluent) or returned and recycled to the top surface of the digester to provide mixing and maximize biomass/substrate contact. The tank will have a gas-tight cover to collect biogas. Biogas will be periodically sampled and analyzed, metered and vented to the atmosphere. Digester temperature will be controlled between 94 °F and 96 °F using a small boiler burning propone. The boiler hot water will be pumped through a pipe network inside the digester to transfer heat to the system. Digester decant or treated effluent from the digester system will be piped to the existing pre-treatment system, mixed with the incoming flow and ultimately land applied. This e-mail and any attachments transmitted with it are created by and are the property of J-U-B ENGINEERS, Inc.and may contain information that is confidential or otherwise protected from disclosure. The information it contains is intended solely for the use of the one to whom it is addressed,and any other recipient is directed to immediately destroy all copies. If this electronic transmittal contains Professional Design Information, Recommendations, Maps, or GIS Database, those are "draft'documents unless explicitly stated otherwise in the email text. 2 �`yF,tiTA'fE•O� V. STATE OF WASHINGTON DEPARTMENT OF ECOLOGY 4601 N Monroe Street•Spokane,Washington 9920.5-7295• (509)329-3400 July 31,2009 Mr. Troy Green, P.E. JUB Engineers 2810 Clearwater Ave., Suite 201 Kennewick, WA 99336 Dear Mr. Green: ! I enjoyed talking with you yesterday about your proposal to construct and operate a pilot digester at the Pasco Industrial Wastewater Treatment Facility. As the permit manager for the facility, I am interested in the results of your study as it relates to possible reductions in the organic loading to the treatment facility's land treatment system,as well as its potential to reduce the potential for odors from facility. The results from the pilot could also be extended to other food processors located within the Columbia Basin that use land treatment systems. Most all use multi-million gallon lined storage ponds to hold high organic strength wastewater during part of the growing season.and throughout the entire winter non-growing season. These open air structures have the potential to produce odors that sometimes are a nuisance to local land and home owners. An affordable treatment option to reduce the organic content of these stored waters could reduce the potential for off site odors. In addition, reducing the organic loading to the land treatment system could reduce the potential to cause anaerobic soil conditions. Anaerobic soils can result in the leaching of salts from the root zone and into any shallow ground water. 1 look forward to learning of the results of your pilot digester study at the Pasco.facility. incer-ly, Don Nichols Permit Manager Water Quality Program DN:eh AGENDA REPORT FOR: City Council DATE: August 4, 2009 TO: Gary Crutchfiel anager WORKSHOP: August 10, 2009 Rick Terway, & C Director REGULAR: August 17, 2009 FROM: Jim Chase, Finance Manager SUBJECT: AUTHORIZATION TO APPROVE METER READING CONTRACT. I. REFERENCE(S): A) Contract for Meter Reading and Related Services and Exhibit A B) Memorandum to Rick Terway, Administrative &Community Services Director and Stan Strebel, Deputy City Manager H. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 8110/2009: Discussion 8/17/2009: MOTION: I move to approve the proposed contract for meter reading services with Columbia Meter Reading, Inc., and authorize the mayor to sign the contract. III. FISCAL IMPACT: The current contract with Columbia Meter Reading, Inc. (CMR) expired in April, 2009. Peter Lemieux, Vice President of CMR, has stated the company would extend the now expired contract for 3 additional years without any increases in their fees for services. The City currently pays CMR approximately $190,000 for their services. This includes routine meter reading, meter turn ons and turn offs when a customer moves in or out, delinquent turn ons and offs due to delinquent amounts owing(including after hours), confined space readings and requested re-reads. The staff at CMR is virtually on-call 24/7. They also respond to emergency shut offs where a customer has a pipe break or is working on the plumbing. IV. HISTORY AND FACTS BRIEF: The city has contracted with CMR for meter reading services for the past 9 years. This contract expired March 31, 2009. Staff last advertised in January 2005 for Request for Proposals for meter reading services. Only CMR responded to that request. There are currently approximately 15,600 water meters to read. In 2000 there were approximately 9,000 meters. All water meters are read once every two months. The account usage is estimated for billing purposes in the non-read months. V. DISCUSSION: Mr. Lemieux was employed by a previous contractor prior to being awarded the contract 9 years ago. He resides within the city limits of Pasco. He has demonstrated his allegiance to the City by notifying staff, on many occasions, when he or his staff notice illegal water connections. He and his staff do an excellent job reading meters. Over the past year CMR's reading accuracy rate has been 99.87%. The attached memo indicates that hiring City employees to do the job would not be as cost effective as continuing to contract with CMR for the next three years. Staff recommends the approval of the new contract with Columbia Meter Reading, Inc. using the current rates. 4(b) CONTRACT FOR METER READING SERVICES This agreement is made and entered into between the City of Pasco, a municipal corporation of the State of Washington,hereinafter referred to as the "City", and Columbia Meter Reading, Inc., hereinafter referred to as the "Contractor". In consideration of the mutual covenants and conditions herein contained the parties agree as follows: 1, SCOPE OF WORK. The Contractor shall read or cause to be read all meters measuring the flow of water from the City water transmission system in accordance with written schedules and maps supplied by the City. Such schedules will provide for the reading of water meters from specified areas or parts thereof within the City's water system at regular intervals. Such schedules may be suspended or revised by the City if, in its sole discretion, such action is required. The reading of water meters shall consist of; accessing the water meter, raising or lifting the lid of the meter box (small metal flap), raising the small metal cover-plate on the meter, wiping any dust or dirt accumulated since the prior reading, reading the numerical readout on the meter, imputing the reading into the electronic handheld device or writing down the reading for future input into electronic handheld device, replacing the small metal cover-plate on the meter and closing the meter box lid. In most instances the contractor will be required to bend down and in some cases get down on their hands and knees to read a meter. There will a few meters were the contractor will be required to lift a heavy lid and climb down into a vault to obtain a reading. A vault is a confined space in which all applicable safety regulations must be followed. At the City's discretion, the contractor will also be required to replace broken meter box lids when found during the routine reading of a route. The City will provide the contractor with a supply of new meter box lids. All daily reading and other assignments shall originate and be dispatched from the Finance Department at Pasco City Hall located at 525 N. 3 Ave.,Pasco, Washington. When reading meters, the Contractor shall check for and record obvious meter malfunctions and damages to the meter or the meter box or lid and report same to the City. If the Contractor deviates from the reading schedules provided by the City without prior approval (not having readings completed as scheduled)the City has the right to impose a penalty (see COMPENSATION). If the percentage of unread meters, excluding defective meters, is over 3%per book the City has the right to impose a penalty (see COMPENSATION). In addition to meter reading,the Contractor shall perform water meter turn-ons and turn-offs at the direction of the City and shall be responsible for emergency turn-on and turn-off services. The Contractor shall be available on a 24 hour basis, seven days a week, for such service. It is against City Ordinance for any unauthorized person to turn-on or turn-off a water meter. Any costs associated with the repair or replacement resulting from a violation of that ordinance, plus a penalty fee, will be billed to the customer. 2. COMPENSATION. The City agrees to pay the Contractor at the rates shown in Exhibit A. 1. For meter reading 2. For service turn-ons and turn-offs and simultaneous turn-ons and turn-offs. 3. For after hours and emergency turn-ons and turn-offs. "After hours" means a turn-on or turn-off assigned to/or received by the contractor after 5.00 p.m. and before 8:00 a.m. the following day. 4. For re-reading meters City staff suspects the original reading may not be accurate. 5. For meter box lid replacements. 6. For testing of the air in confined vault spaces for the breathing safety of the reader. 7. The City has the right to impose a penalty for not having meter reading completed as scheduled,to be deducted from the next regular payment. 8. The City has the right to impose a penalty when the percentage of unread meters and/or reading errors exceeds 3%per book, to be deducted from the next regular payment. 9. The City has the right to impose a penalty in the event the Contractor cannot be reached and sends a public works employee to respond to a call. The amount due the Contractor for services for the month shall be calculated from the 26th to the 25th of each month and paid to by the 10th of the following month. 3. PERSONNEL REQUIREMENTS. The personnel used by the Contractor in connection with the services rendered hereunder shall be persons of good character. Moreover, such personnel must be dressed to distinctively indicate their status as personnel of the Contractor and the Contractor shall employ a standard uniform in the conduct of its business. A standard uniform may either have a patch sewn on clothing or a separate vest with the words 'METER READER' visible. The Contractor shall employ at least one regular employee to perform the work required in connection with the services to be rendered hereunder and shall have an adequate pool of reserve employees to fulfill the requirements specified herein within a reasonable amount of time. The City reserves the right to disapprove the continued use of any employee of the Contractor when it comes to the attention of the City that the employee has acted contrary to the best interest of the City in the performance of the services to be rendered hereunder. Such employee shall be immediately removed from performance of the services hereunder by the Contractor upon its receipt of written notice of disapproval from the City. 4. VEHICLE AND EQUIPMENT REQUIREMENTS. Vehicle and Equipment requirements are as follow: a. The Contractor shall supply at least two vehicles suitable for the services specified herein, not older than three years as of the date of this contract, identified with the words "WATER METER READER" (magnetic sign acceptable). b. The Contractor will provide a cellular telephone for each employee for immediate communication with the Finance Department at City Hall. c. The City will provide the Contractor with 2 pagers that shall be in the possession of the employee(s) or the reserve employee who has the immediate responsibility for the performance of the service requirements provided hereunder. d. All items of property provided to the Contractor by the City will remain the property of the City. The Contractor will be responsible for all property of the City delivered unto its custody until it is returned to the City. It shall provide or obtain written receipts therefore as required by the City Finance Manager. All property shall be returned in good working condition, normal wear and tear excepted. e. The Contractor shall supply all tools necessary to perform the requirements of the contract. (See DAILY REQUIREMENTS.) 5. CONTRACTOR'S EXPENSES. Costs and expenses incurred by the Contractor and/or its personnel in connection with the services rendered hereunder, except as may be specifically stated otherwise herein, shall be the sole cost and expense of the Contractor including, but not limited,to fuel costs, vehicle maintenance expenses, uniforms, wages and other employee benefits. 6. DAILY REQUIREMENTS. Monday through Friday of each week, except in the case of a holiday, the Contractor shall report to the Utility Billing Manager, or designee, at approximately 9:30 a.m., 12:30 p.m. and 4:30 p.m.,to be given a schedule of work, including delinquent turn offs, hangers, re-reads, other turn ons and turn offs, and reads, if any, as prepared by the City. All work orders given to the Contractor must be completed and returned to the office at the next scheduled arrival. Any deviations from the schedule must be cleared through the Utility Billing Manager, or designee. Any work orders that are not completed in accordance for the schedule will not be compensated unless the deviation is approved by the Utility Billing Manager, or designee. The Contractor shall be available to the City by pager or by telephone 24 hours a day for the assigning of emergency water service turn-ons and turn-offs. It shall be the responsibility of the Contractor to keep any answering service used informed of which employee's are on call for emergency turn-ons and turn-offs. Emergency turn-ons and turn-offs shall be performed expeditiously, within 30 minutes of assignment, to minimize any potential property damage. Meter readings shall be performed within the schedule designated by the City but the actual hours worked by the Contractor in the performance of meter reading shall be at the Contractor's discretion, so long as the meter reading is performed within said schedule. Monday through Friday, as previously specified,the Contractor or a specifically designated employee of the Contractor shall give to the Utility Billing Manager, or designee, all required records of water turn-ons and turn-offs and meter readings performed by the Contractor's personnel but not yet reported to the City. The Contractor or its employees are not authorized to collect nor shall they collect any monies whatsoever from the City's utility customers for services performed or for payments on account. Each employee of the Contractor must have the following meter reading equipment available to them at all times: a flat-head screwdriver; a key for large meters; a key for padlocks used for lock- offs; a water pump; a shovel; a pick; blue paint; and door hangers. 7. PERSONNEL TRAINING. The Contractor shall insure that all employees are properly trained, to the City's satisfaction, in the methods by which meters are to be read and the results recorded, and to insure the meters are read accurately and without damage to City property in accordance with the schedules established by the City. Contractor shall further insure that all employees are trained as to the location of the City's water meters for readings and service turn-ons and turn-offs without damage to the meters or others property. 8. ACCURACY OF READINGS. The accuracy for each meter reading and the reporting thereof shall be the responsibility of the Contractor and/or its personnel. Re-reads requested by the City shall be without compensation to the Contractor if the original read was in error. If a meter is re-read and no error is found to have occurred the Contractor shall be compensated by the City at the rate shown in Exhibit A. 9. ACCESSIBILITY OF METERS. It is acknowledged by both parties that the City's water meters can be obscured from vision by physical elements, water and/or other materials. It is the responsibility of the customer to keep the meter free from overgrown shrub growth and debris and to maintain the area around the meter to allow easy access for meter reading purposes. If a meter is obscured from vision due to water or dirt in the meter box, the Contractor and/or its personnel shall be required to pump out the water or dig out the dirt and obtain a reading. If a meter is unable to be found, due to it being covered by substantial sand, dirt or other debris, then the meter reader shall have the responsibility of leaving a door hanger at the location and reporting such failure to find the meter and the reason therefore on their report sheet for follow-up action by the City and shall be paid at the regular meter reading rate. If the meter reader cannot obtain a meter reading for safety reasons (i.e., a mean animal in the area),the reader shall try to obtain the residence's assistance, or leave a door hanger explaining when he/she will return to obtain a reading. If, upon returning, the animal is still loose and a reading cannot be obtained, the reader will leave another door hanger notifying the customer the reading will be estimated. The reader must keep a log of the addresses that have been left a hanger, the date it was left, and the reason the hanger was needed. The log should be turned into the finance Department along with the readings for that particular route and the contractor shall be paid at the regular meter reading rate. 10. INCLEMENT WEATHER/SUSPENSION OF METER READING SERVICES. Parties recognize that snow or extreme cold or other weather conditions may substantially affect the accessibility of City water meters and their susceptibility to damage from the cold if a reading is attempted. The City, in its sole discretion, shall have the authority to suspend meter reading for such periods of time deemed appropriate and reasonably necessary. 11. INSURANCE. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Contractor shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 1185. There shall be no endorsement or modification of the Commercial General Liability insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured- Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Minimum Amounts of Insurance Contractor shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of$1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a$2,000,000 products- completed operations aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Contractor's insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance,or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. 2. The Contractor's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. Subcontractors Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Contractor. 12. INDEMNITY. In the performance hereunder, Contractor is an independent contractor,the City being interested only in the result obtained. The manner and means of conducting such work will be under the sole controls of Contractor, except as herein specifically provided. However, all work performed hereunder will be done in accordance with the provisions hereof and be subject to the right if of inspection by the City and its representatives. The Contractor shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. Contractor agrees to indemnify the City for loss or damage to any of the City's property or equipment issued or obtained in connection with the work to be performed hereunder. 13. REQUIREMENTS OF LAW. In the performance of the work provided for herein, the Contractor agrees that it shall be conducted in full compliance with any and all applicable laws, rules, and regulations adopted or promulgated by any government agency or regulatory body, either municipal, state or federal. The Contractor expressly agrees that in the performance of work hereunder compliance will be had with the applicable provisions of the Fair Labor Standards Act of 1938 as amended, and with all valid regulations having applications thereto. The Contractor assumes sole responsibility for the payment of all contributions, payroll taxes or assessments, state or federal, as to all employees engaged in the performance of work hereunder, and further agrees to meet all requirements that may be specified under regulations of administrative officials or bodies charged with enforcement of any state or federal act, upon the subject referred to. The Contractor assumes and agrees to pay any and all gross receipts, compensation, use, transaction, sale, or other taxes or assessments of whatever nature or kind levied or assessed as a consequence of the work to be performed or on the compensation to be paid hereunder. 14. ATTORNEYS FEES AND COSTS. For the purpose of this Contract, time is of the essence. Should any dispute arise concerning the enforcement, breach or interpretation of this Contract, venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall apply, and the prevailing parties shall be entitled to its reasonable attorney's fees and costs. 15. TERM OF CONTRACTITERMINATION. The term of this contract shall be for a period beginning 12:00 a.m. April 1, 2009 and ending at 11:59 p.m. March 31, 2012, unless earlier terminated as provided hereunder. Either party may, without cause, terminate this contract by providing 90 days written notice to the other. Either party has the right to terminate this agreement if the other defaults in performing any of the covenants and agreements contained in,provided that prior thereto the party terminating the contract shall have given the other party written notice of the facts constituting the default and the other party shall have not remedied the same within thirty days of the receipt of the notice. Upon mutual agreement of both parties, this contract may be extended for one additional year term. 16. COMPLETE AGREEMENT. This agreement is the whole and complete agreement of the parties, superceding and replacing all others and may not be replaced,modified or revoked without the same being in writing signed by all of the parties. In witness whereof, the parties hereto have executed this agreement this 17th day of August, 2009. CONTRACTOR: Representative: CITY OF PASCO: Joyce Olson, Mayor ATTEST: Sandy Kenworthy,Deputy City Clerk APPROVED AS TO FORM: Leland Kerr, City Attorney Exhibit A COMPENSATION: The City agrees to pay the contractor at the following rates: 1. Per meter Read $1.42 2. Per turn-off or turn-on $4.26 and simultaneous turn-ons and turn-offs 3. per non-scheduled after hours call outs $42.77 "After hours" means a turn-on or turn-off assigned to/or received by the contractor after 5:00 p.m. and before 8:00 a.m. the following day. 4. per re-read, when the original read turns out to be correct $7.13 when the original read turns is NOT correct $0.00 5. per meter box lid replacement If done by work order $6.00 If done while on route being read $0.00 Contractor will carry a small inventory of meter box lids, provided by the City, to replace damaged lids. 6. per each air test for breathing safety in confined vault spaces $14.26 Penalties: 7. There shall be a $100.00 penalty for not having meter reading completed as scheduled. 8. There shall be a$100.00 penalty when the percentage of unread meters exceeds 3%per book. 9. There shall be a$150.00 penalty when the City sends a public works employee to respond to a location when the Contractor cannot be reached. MEMORANDUM Date: July 17, 2009 To: Rick Terway, Administrative& Community Services Director Stan Strebel, Deputy City Manager From: Jim Chase, Finance Manager Re: Meter Reading Contract The water meter reading contract expired in April. This was a one year extension to the original 3 year contract. Last year, Columbia Meter Reading, Inc. (CMR) (Peter Lemieux) asked and was given a 3% increase over the previous reading rates due to the increase in gasoline prices. CMR has offered to sign an additional 3 year extension with NO increase in fees. The original contract does state it runs for three years and also states the "contract may be extended for one additional year term." Based on my calculation, contracting out these services is still a cost effective way to get the job done at the current rates. Using City employees would most likely require Operating Engineer's (OE) union employees to perform the job functions. It would also require purchasing several vehicles. I believe it would take 2.5 employees to perform the function in house. Every Wednesday is turn off day for delinquent customers. The meter readers are busy all day turning off and locking off those water meters. When the customer discovers the water has been shut off they call the office and either come in to make their payment or go on-line and pay and want their water back on as soon as possible. Staff calls CMR to schedule the turn-on. Many times the customer does not find out their water has been disconnected until they arrive home from work. They then call the after-hour's number (Kelly's Answering Service) who, in-turn, contacts CMR to turn the water back on (with the customer's promise to be in the next day to pay the bill and the reconnect fee). After hours turn-on's, based on the current OE labor agreement, as I understand it, would require over-time pay, and call out pay. CMR is currently paid $1.42 per meter read (a total of$129,664 for the year ended March 2009), $7.13 for a re-read (if their original read was accurate, which it usually is) (annual total of$841), $42.77 for an after-hour's turn-on or off(annual total of $11,805), $14.26 for a confined space read (annual total of$6,845), and $4.26 for a turn-on or off when given work order prior to 4:30 pm (annual total of$40,662). The total paid to CMR for the last contract period was $189,817. The City collected $141,461 in Reconnect Fees during that same period and collected $142,782 in Late Fees. Two and one half OE's with vehicles would cost between $189,000 to $205,000 for the first year, depending on where each employee was on the wage scale, including salaries, call-out pay, overtime, cell phone pay and annual vehicle costs. The second and third year increases would depend on COLA's and step increases. The first year we might save a small amount using OE employees, the second third year we would be spending more. The OE pay scale goes from step one to step six (top) in 5 years. CMR requires very little supervision. Each day they are given the handheld device with the downloaded route information to be read. They can work day or night and/or weekends obtaining the reads. They are given work orders to perform (turn-on's, turn-off s, re-reads). They are paid the contract price to complete assigned work. There are penalty provisions in the contract for high reading errors and getting the readings to City staff after the scheduled time. We have never penalized CMR. They are very reliable. There are very few meter reading errors with CMR. Utility Billing staff sends them out for a re- reads because the original reading might show an unusual jump in consumption. 99.87% of the time the reading is correct (118 errors out of 99,313 readings). In-house meter readers would require additional supervision, direction, training, and annual evaluations. Staff would need to schedule around vacations and sick leave. Since in-house readers would be Operating Engineer's would they be supervised by Finance or Public Works? We have the opportunity to extend CMR's current contract for an additional 3 year period at the current rates (NO RATE INCREASE). AGENDA REPORT TO: City Council August 4, 2009 FROM: Gary Crutchfi Manager Workshop Mtg.: 8/10/09 SUBJECT: Capital Improvement Plan 1. REFERENCE(S): 1. Proposed Capital Improvement Plan 2010 — 2015 (Council packets only; copy available for review in the City Manager's office, Pasco Library or on the city's website at htip://www.pasco-wa.gov/Generallnfo/FinanceAccountin . II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS: 8/10: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS: A) The city spends several million dollars annually on a wide variety of capital expenditures necessary to deliver or improve municipal services to its citizenry. Those capital expenditures range from parks, streets and utilities to buildings, fire engines and computers. B) Some of the capital improvement projects require debt financing. Given the constraints on operating revenues, it is important to properly plan for additional debt service obligations. Development of a six-year Capital Improvement Plan, which identifies the various capital projects expected to be undertaken each year and the method of financing for each, is essential to effective financial planning for the city. It is also beneficial to the general public, which can reasonably anticipate when certain improvements are expected to occur. C) Development of the annual Capital Improvement Plan occurs as a prelude to the annual budget; the first year of the approved Capital Improvement Plan is then incorporated into the subsequent annual budget document. Thus, review and discussion of the Capital Improvement Plan should be carried out with the notion that the conclusions reached represent guidance to staff in developing next year's budget. V. DISCUSSION: A) Staff will be prepared to answer questions about any of the projects included in the proposed Capital Improvement Plan at the Workshop. It is recommended that Council gain a thorough understanding of the document through discussion at the Workshop. Staff expects Council to take formal action approving the Capital Improvement Plan in September so that it can be used to develop the 2010 fiscal year budget during September/October. 4(c)