CONTRACT 3874A Closed CLOSED3874A . .
FIRST AMEND T TO
AGREEMENT NO. TWEEN
THE CITY OF EL SEG DO AND
AKM CONSULTING ENGINEERS
THIS FIRST AMENDMENT ( "Amendment ") is made and entered into this 8th day of May 2009,
by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation
existing under the laws of California ( "CITY "), and AKM CONSULTING ENGINEERS,
a California Corporation ( "CONSULTANT ").
1. Agreement No. 3874 ( "Agreement "), executed by parties on December 1, 2008, is amended
to increase the contract amount to a new sum not to exceed THREE HUNDRED FOUR
THOUSAND EIGHT HUNDRED EIGHT FOUR DOLLARS ($304,884) for the services
listed on Exhibits "A ", `B" and "C ".
2. The new term of the contact will be from December 1, 2008 to May 12, 2010.
This Amendment may be executed in any number or counterparts, each of which will be an
original, but all of which together constitutes one instrument executed on the same date.
4. Except as modified by this Amendment, all other terms and conditions of Agreement No.
3874 remain the same.
[SIGNATURES ON NEXT PAGE]
3874h,._
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year
first hereinabove written.
4Jayt, EG AKM Consulting Engineers,
Zeki Kayiran, P.E. '`�✓� Principal
ATTEST:
Cindy Mo sen, `
City Clerk
APPROVED AS F
MARK D. HE E t A me
i
By:
Kar H. erger, Assis nt City Attorney
Taxpayer ID No. �7�' 04 2Z06 G
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AKM Consulting Engineers
553 Wald
Irvine, CA 92618
Telephone: 949.753.7333
Facsimile: 949.753.7320
April 6, 2009
City of El Segundo
350 Main Street
El Segundo, California 90245
EXHIBIT "A ", "B" AND "C”
Attention: Ms. Maryam Jonas
Subject: Proposal to Prepare a Water Rate Update Study
Dear Ms. Jonas:
3874 ,f „..
Water
Resources
Infrastructure
Construction
Management
AKM Consulting Engineers is pleased to submit this proposal to prepare an update to the rate study for the
City's water utility. The purpose of the study is to update the existing financial model with the most current
information, including the increases in the Metropolitan Water District of Southern California's imported water
rates, and develop new rates that will provide adequate and stable revenues for operating the municipal water
utility as a self sufficient enterprise.
The City currently provides water service to approximately 4,500 customers within its service area. The
existing source of supply consists solely of imported water from the Metropolitan Water District of Southern
California. Four classes of Recycled water produced by the West Basin Municipal Water District is provided to
various customers in El Segundo.
Scope of Work
The scope of work for the study will consist of:
1. Analysis of operating expenses between FY 2003 -2004 and 2007 -2008. This will include water
purchases, power, operation and maintenance, staff costs, supplies, equipment, administrative costs.
2. Review of the existing and planned charges from the Metropolitan Water District of Southern California for
imported water, and evaluation of its impact on the water rates
3. Analysis of the existing capital improvement and facility replacement program for the next ten (10) years
4. Review of existing reserves in the water fund, and developing recommendations for future reserves
(Water Fund Balances)
5. Update the existing financial model with the most up -to -date fund balance, expenditure, and revenue
information.
6. Conduct financial analyses to develop rates for the next five years. The recommended rates will stabilize
the revenues for fixed operation and maintenance, and capital improvements
7. Hold meetings with City's Public Works and Administrative Services Department staff to obtain
information, provide status reports, and review the submittals
AKM Prop. 09- 3060 -04 -06
3874A,"
City of El Segundo
Ms. Maryam Jonas
April 6, 2009
Page 2
B. Prepare a draft report of the rate study, and submit ten (10) copies to the City of El Segundo
9. Review the comments with City staff, incorporate them into the report and prepare final Rate Study
Report. Include twenty (20) hard copies, and one electronic copy that can be utilized for additional
reproductions. The submittal will include the financial model, and instructions on the use of the model
10. Prepare presentations and participate in staff and public workshops, including two (2) meetings with the
City Council
The City will provide:
1. Annual Financial Reports (audited) from FY 03 -04 through FY 07 -08 from which the water utility's annual
revenues and expenses can be clearly developed
2. FY 08 -09 and FY 09 -10 budgets
3. Ten -year capital improvement plan, including anticipated facility replacements
4. One year of billing data by meter and billing period for all meters in Excel
9. Water purchase reports by month from FY 03 -04 through present
10. Water sales reports by billing period from FY 03 -04 through present
10. Other information as available from existing files.
Schedule
We propose to complete this scope of work within 16 weeks of obtaining all needed information from the City.
Workhour and Cost Estimate
The workhours needed to complete the work tasks and associated costs are presented in the table below:
Task
Description
Hours
Cost
Project
Manager
Financial
Analyst
Word
Processing
1
Analysis of Operating Expenses
4
24
$3,072
2
Review of MWD Rates
4
8
$1,552
Review 10- r CIP & Replacement Program
2
8
$1,156
Review Reserve Requirements /Policies
2
4
$776
Update Financial Model
4
40
$4,5Conduct
H8
Financial Analyses
4
32
$3,832
Meetings with Staff
8
8
$2,344
Draft Rate Study Report
4
24
16
$4,128
Final Rate Study Report
4
8
8
$2,080
Workshops and Presentations
8
8
8
$2,872
Total Labor
44
164
32
Hourly Rates
$198
$95
$66
Labor Cost
$8,712
$15,5801
$2,112
$26,404
Expenses
$2,000
Total Cost
$28,404
AKM Prop. 09- 3060 -04 -06
38744, ,
City of El Segundo
Ms. Maryam Jonas
April 6, 2009
Page 3
We appreciate the opportunity to submit this proposal and look forward to being of continued service to the
City of El Segundo. Should you have any questions or require additional information, please do not hesitate in
contacting the undersigned.
Very truly yours,
AKM Consulting Engineers
/e2 Kayiran, P.E.
Principal
AKM Prop. 09- 3060 -04 -06