Loading...
HomeMy WebLinkAboutCity Council Resolutions (R-05-2531)-04/05/2005RESOLUTION R-05-2531 A RESOLUTION APPROVING A CONTRACT WITH KIMLEY-HORN AND ASSOCIATES FOR WATER, WASTEWATER, AND ROADWAY CAPITAL IMPROVEMENT PLANNING NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec.1. THAT the contract for professional services with Kimley-Horn and Associates for water, wastewater, and roadway capital improvement planning in an amount not to exceed $71,000 is hereby approved AND IT IS SO RESOLVED. PASSED BY A VOTE OF 7- AYES, I NAYS AND O ABSTENTIONS ON THIS THE S~ DAY OF ' 2005. ATTEST: - '-,~~ ~`~, ~ Cynthia Singleton, TRMC City Secretary Mayor ~=~ Kimley-Horn and Associates, Inc. March 1, 2005 . Suite 1025 801 Cherry Street, Unit 11 Fort Worth, Texas 76102 Mr. Barry LeBaron, AICP Community Development Manager City of Colleyville 100 Main Street Colleyville, TX 76034 Re: Water, Wastewater, and Roadway Impact Fee Update Colleyville, Texas Proposal for Professional Engineering Services Dear Mr. LeBaron: Kimley-Horn and Associates, Inc. (KHA) is pleased to submit this Letter Agreement to the City of Colleyville (Client) to provide professional services to update the City's water, wastewater, and roadway impact fees. Our project understanding, scope of services, schedule, and fee are below. Project Understanding This project consists of providing professional services associated with an update of the City of Colleyville Land Use Assumptions and Water, Wastewater, and Roadway Impact Fees in accordance with Chapter 395 of the Texas Local Government Code. This project is anticipated to include the following components: 1. Land Use Assumptions (Report to include City staff-prepared work) 2. Water Impact Fee Update 3. Wastewater Impact Fee Update 4. Roadway Impact Fee Update 5. Financial Analysis and Impact Fee Credit Determination 6. Public Hearings and Approval Scope of Services If services beyond those defined in this scope are to be required, KHA will confer with the Client to receive further authorization before such additional services are performed. . TEL 817 335 6511 FAX 817 335 5070 ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1, 2005, Page 2 Task 1 - Land Use Assumptions $2,500 KHA will assist the City in developing the land use assumptions in conformance with Chapter 395 of the Local Government Code and shall include: 1.1. Service Area Boundaries. KHA will meet with the City to review current service areas for water, wastewater, and roadway impact fees. KHA will work with City staff to revise the service area boundaries (if necessary) KHA will review the existing roadway service areas and make recommendations to the number of service areas so that each area does not exceed the six (6) mile restriction as stated in Chapter 395 of the Local Government Code. 1.2. Land Use Assumptions. KHA will provide City staff with an overview of the information required as part of the Land Use Assumptions for Impact Fees. This task will require the City to develop the following for use in the Impact Fee calculations: 1.2.1 Existing population and employment information by service area for the Year 2005; 1.2.2 Build-Out population and employment projections by service area; 1.2.3 Ten Year population and employment projections by service area for the Year 2015; 1.2.4 All population information shall be reported by number of persons and number of dwelling units; while all employment data shall be classified as number of square feet of floor area for Basic, Service, and Retail employment; and 1.2.5 Summary report to include with the Impact Fee Update showing a general overview of methodology and results. Task 2 - Water Impact Fee Update $19,000 KHA will prepare the water impact fee update in conformance with Chapter 395 of the Local Government Code and shall include: 2.1. Data Collection. KHA will deliver a letter request to the City describing water data that should be provided to KHA. The data collection is as follows: 2.1.1 Water Master Plan - KHA will coordinate with the City to obtain the latest water system master plan adopted by the City. 2.1.2 KHA will obtain water usage history - Annual water usage and maximum day usage records for the past ten (10) years for development of the service unit projection. 2.1.3 Trinity River Authority (TRA) wholesale water contract with the City. ~=n Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1,2005, Page 3 2.1.4 TRA rate calculation with regards to the Cities cost obligation for TRA water delivery facilities. 2.2. Infrastructure Capacity Criteria. KHA will coordinate with the City to obtain the criterion for determining the ten (10) year capacity of the following infrastructure: 2.2.1 Future Transmission Lines (12-inch and larger) 2.2.2 Existing and Future Elevated Storage Tanks 2.2.3 Existing and Future Ground Storage Tanks 2.2.4 Existing and Future Pump Stations An analysis of the TRA rate calculation will be done to determine if existing or future TRA facilities may be accounted for as part of the Impact Fee Capital Improvements Plan. A criterion will not be developed for existing City transmission lines. 2.3. Water Impact Fee Capital Improvements Plan. KHA will coordinate with the City to develop the Water Impact Fee Capital Improvements Plan. It will include the following infrastructure: 2.3.1 Future Transmission Lines (12-inch and larger) 2.3.2 Existing and Future Elevated Storage Tanks 2.3.3 Existing and Future Ground Storage Tanks 2.3.4 Existing and Future Pump Stations Results of the TRA rate analysis will determine whether TRA facilities will be included in the Impact Fee Capital Improvements Plan. It will not include existing City transmission lines. 2.4. Maximum Assessable Water Impact Fee Calculation. KHA will calculate the additional service units based on the Land Use Assumptions. KHA will then calculate the Impact Fee per service unit, unit equivalents by meter size and the Maximum Assessable Water Impact Fee table by meter size. KHA will incorporate the financial analysis performed in Task 5 to determine the maximum assessable impact fee by service unit. 2.5. Water Impact Fee Update Report. KHA will provide both a draft and final Water Impact Fee Report. The report will include: 2.5.1 Water service area 2.5.2 Narrative of the impact fee update methodology 2.5.3 Impact fee calculations 2.5.4 Water Impact Fee CIP 2.5.5 Exhibits ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1,2005, Page 4 2.5.6 Because of the relatively high printing costs and the challenge of managing drafts and final versions of each major component of the Impact Fee Update Report, draft versions of the Water Impact Fee Report will be submitted in .pdf format. 2.6. Meetings. KHA will prepare for and attend the following meetings: 2.6.1 One (1) meeting with TRA staff to review the wholesale rate calculation. 2.6.2 One (1) meeting with staff to review Water Impact Fee Capital Improvements Plan 2.6.3 One (1) meeting with staff to review Maximum Assessable Water Impact Fees 2.7. Deliverables 2.7.1 Data collection request letter 2.7.2 Electronic (.pdf) copy ofthe Draft Water Impact Fee Report 2.7.3 Upon final approval ofthe Impact Fee Update and new ordinance by the City Council, KHA will provide twenty (20) originals of the Final Impact Fee Update Report, including the Water Impact Fee component ofthe Report (see Task 6). Task 3 - Wastewater Impact Fee Update $19,000 KHA will prepare the wastewater impact fee update in conformance with Chapter 395 of the Local Government Code and shall include: 3.1. Data Collection. KHA will collect the following data: 3.1.1 Wastewater Master Plan - KHA will coordinate with the City to obtain the latest wastewater system master plan adopted by the City. 3.1.2 KHA will obtain wastewater usage history - Annual wastewater usage and peak usage records for the past ten (10) years for development of the service unit projection. 3.1.3 Trinity River Authority (TRA) wholesale wastewater contract with the City. 3.1.4 TRA rate calculation with regards to the Cities cost obligation for TRA wastewater collection facilities. 3.2. Infrastructure Capacity Criteria. KHA will coordinate with the City to obtain the criterion for determining the ten (10) year capacity of the following infrastructure: 3.2.1 Existing Trunk Lines that are 1 a-inch and larger ~=~ Kimley-Horn and Associates, Inc. Mr. Barry leBaron, AICP, March I, ZOOS, Page S 3.2.2 Future Trunk Lines (8-inch and larger) 3.2.3 Existing and Future Lift Stations 3.2.4 Existing and Future Force Mains An analysis of the TRA rate calculation will be done to determine if existing or future TRA facilities may be accounted for as part of the Impact Fee Capital Improvements Plan. 3.3. Wastewater Impact Fee Capital Improvements Plan. KHA will coordinate with the City to develop the Wastewater Impact Fee Capital Improvements Plan. It will include the following infrastructure: 3.3.1 Existing Trunk Lines that are lO-inch and larger 3.3.2 Future Trunk Lines (8-inch and larger) 3.3.3 Existing and Future Lift Stations 3.3.4 Existing and Future Force Mains Results of the TRA rate analysis will determine whether TRA facilities will be included in the Impact Fee Capital Improvements Plan. 3.4. Maximum Assessable Wastewater Impact Fee Calculation. KHA will calculate the additional service units based on the Land Use Assumptions. KHA will then calculate the Impact Fee per service unit, unit equivalents by meter size and the Maximum Assessable Wastewater Impact Fee table by meter size. KHA will incorporate the financial analysis performed in Task 5 to determine the maximum assessable impact fee by service unit. 3.5. Wastewater Report. KHA will provide both a draft and final Wastewater Impact Fee Report. The report will include: 3.5.1 Wastewater service area 3.5.2 Narrative of the impact fee update methodology 3.5.3 Impact fee calculations 3.5.4 Wastewater Impact Fee CIP 3.5.5 Exhibits 3.5.6 Because of the relatively high printing costs and the challenge of managing drafts and final versions of each major component of the Impact Fee Update Report, draft versions of the Wastewater Impact Fee Report will be submitted in .pdf format. 3.6. Meetings. KHA will prepare for and attend the following meetings: 3.6.1 One (1) meeting with TRA staffto review the wholesale rate calculation. ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March I, 2005, Page 6 3.6.2 One (1) meeting with staff to review Wastewater Impact Fee Capital Improvements Plan 3.6.3 One (1) meeting with staff to review Maximum Assessable Wastewater Impact Fees 3.7. Deliverables. 3.7.1 Data collection request letter 3.7.2 Electronic (.pdt) copy of the Draft Wastewater Impact Fee Report 3.7.3 Upon final approval ofthe Impact Fee Update and new ordinance by the City Council, KHA will provide twenty (20) originals of the Final Impact Fee Update Report, including the Wastewater Impact Fee component ofthe Report (see Task 6). Task 4 - Roadway Impact Fee Update $19,000 KHA will prepare the roadway impact fee update in conformance with Chapter 395 of the Local Government Code and shall include: 4.1. Data Collection. KHA will collect the following data: 4.1.1 Thoroughfare Plan - The City shall provide KHA the most recent thoroughfare plan adopted by the City. GIS shapefiles, databases, and layering information shall be provided if available. 4.1.2 Traffic Counts - The City shall provide data (current and historical) for all roadway segments on the current Master Thoroughfare Plan. If additional traffic counts are required, the City will collect this additional data. 4.2. 10-Year Growth Proiections and Capacity Analysis. 4.2.1 KHA will use the service area boundaries established as part of Task 1 (Land Use Assumptions). In consultation with the City staff, KHA will determine land use categories to be included in the land use vehicle-mile equivalency table. 4.2.2 KHA will identify the service units for new development and the average trip length. Using the Seventh Edition ofthe Institute of Transportation Engineer's (ITE) Trip Generation Manual, KHA will develop updated trip generation and pass-by trip rates. 4.2.3 KHA will perform an analysis of existing conditions. This will include a determination of roadway capacities, volumes, vehicle- miles of supply, vehicle-miles of demand, existing excess capacity, and existing deficiencies. 4.2.4 KHA will project traffic conditions for the ten-year planning period, the target year for the impact fee growth projections. This will include growth and new demand by service area. KHA will determine the capacity available for new growth. ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1,2005, Page 7 4.3. Roadwav Impact Fee Capital Improvements Plan 4.3.1 KHA will assist the City to develop a Roadway Impact Fee Capital Improvements Plan, which will include cost projections for anticipated projects to be included in the study. The Roadway Impact Fee Capital Improvements Plan will include existing oversized facilities and proposed facilities designed to serve future development. The Roadway Impact Fee Capital Improvements Plan shall include a general description of the project and a project cost projection. Planning level cost projections for future projects will be prepared based on previous experience with Roadway construction costs. The City shall provide KHA with actual City cost information for previously completed projects with excess capacity and any cost contribution to County or State projects. 4.3.2 KHA will identify the portion of project improvements required to serve existing demand and the portion of project improvements required to serve new development within the lO-year planning period. 4.4. Maximum Assessable Roadway Impact Fee Calculation. Using the newly developed lO-year growth projections, roadway impact fee capital improvements plan, and capacity available for new growth, KHA will determine the cost of roadway improvements by service area, the maximum costs per service unit, and the resulting maximum assessable roadway impact fees by service area. KHA will incorporate the financial analysis performed in Task 5 to determine the maximum assessable impact fee per service unit. 4.5. Roadway Report. KHA will provide both a draft and final Roadway Impact Fee Report. The report will include: 4.5.1 Roadway service areas 4.5.2 Narrative of the impact fee update methodology 4.5.3 Impact fee calculations 4.5.4 Roadway Impact Fee CIP 4.5.5 Exhibits 4.5.6 Because of the relatively high printing costs and the challenge of managing drafts and final versions of each major component of the Impact Fee Update Report, draft versions of the Roadway Impact Fee Report will be submitted in .pdf format. 4.6. Meetings. KHA will prepare for and attend the following meetings: 4.6.1 One (1) meeting with staff to review the Roadway Impact Fee CIP ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1,2005, Page 8 4.6.2 One (1) meeting with staff to review the proposed Maximum Assessable Roadway Impact Fees 4.7. Deliverables 4.7.1 Electronic (. pdt) copy of the Draft Roadway Impact Fee Report 4.7.2 Upon final approval of the Impact Fee Update and new ordinance by the City Council, KHA will provide forty (40) originals of the Final Impact Fee Update Report, including the Roadway Impact Fee component of the Report (see Task 7). Task 5 - Financial Analysis and Impact Fee Credit Determination $8,000 A financial subconsultant will calculate maximum assessable impact fees for the designated ten-year period for each service function (i.e. water, wastewater, and roadways), as well as determine the water, wastewater, and roadway impact fee credits in conformance with Chapter 395 of the Local Government Code. This task shall include: 5.1. Select Appropriate Credit Option. In 2001, Chapter 395 was amended to include a plan for awarding either a credit for the portion of ad valorem tax and/or utility service revenues generated by new service units during the program period that are used for payment of improvements that are included in the impact fee capital improvements plan, or a credit equal to 50% of the total cost of the impact fee capital improvements plan. Using the impact fee eligible capital improvement costs and projected service units provided by KHA, the financial subconsultant will calculate the maximum assessable, full-cost recovery impact fees, including applicable financing costs, for the designated period. The financial subconsultant will then meet with City Staff to determine the credit option (either the credit determination or 50% of costs) that most appropriately satisfies the balance between the City's funding requirements and the City's desired economic growth. 5.2. Credit Determination. Assuming the City elects to pursue the credit option involving ad valorem tax and/or utility service revenue, the financial subconsultant will determine the appropriate credit, if any, and apply this credit to the impact fee determination in accordance with Chapter 395 requirements. A critical component of this calculation is the examination of funding practices involving existing projects that are impact fee eligible under the newly calculated impact fees. Since Chapter 395 requires a credit for ad valorem taxes and/or utility service revenues from new service units used to fund impact fee eligible projects, a decision must be made as to whether to maintain or modify the existing funding practice for existing projects. The ultimate decision of either maintaining or modifying existing ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1,2005, Page 9 funding practices is generally based on funding needs or the administrative requirements of complying with Chapter 395. 5.3. Impact Fee Determination. After the credit determination is made, the credit will be incorporated into the impact fee calculation. The impact fee calculation performed by the financial subconsultant uses a financial model, which fully recognizes the requirements of Chapter 395, including the recognition of cash and/or debt financing, interest earnings, fund balances, ad valorem taxes, and utility rate revenues. 5.4. Meetings and Presentations. After the impact fees have been calculated, the financial subconsultant will meet with City Staff to review the impact fee determination and address any outstanding issues and/or concerns. Staff's comments and recommendations will be incorporated where appropriate. KHA will incorporate the financial analysis and impact fee credit determination into the final impact fee documentation. Task 6 - Public Hearings and Approval $3,500 6.1. Prepare for and attend one (1) joint CIAC / Council workshop to present fundamentals of Impact Fees, a summary of the Impact Fee Update methodology, and the respective CIP's and Maximum Assessable Impact Fees 6.1.1 KHA will provide twenty-five (25) copies of the Draft Impact Fee Update Report for distribution to the CIAC, Council, and staff 6.2. Upon final approval of the Impact Fee Update and new ordinance by the City Council, KHA will provide twenty (20) copies of the Final Impact Fee Update Report, including Land Use Assumptions, Water, Wastewater, Roadway, and Financial Analysis components the Impact Fee Update. 6.3. Electronic (.pdf) copy of the Final Impact Fee Update Report Mr. Bany LeBaron, AICP, March I, 2005, Page J 0 Additional Services Services not specifically identified in the Scope of Services above shall be considered additional and shall be performed on an individual basis upon authorization by the City. Compensation for additional services will be agreed to prior to their performance. Such services shall include, but are not limited to, the following: · Additional assistance in developing the land use assumptions outside of that described in this agreement · Preparation for and attendance at additional public meetings not specifically identified in the Scope of Services · Furnish additional copies of review documents and/or bid documents in excess of the number of the same identified in the Scope of Services · Reanalysis or recalculation to reflect project scope changes or policy changes requested by the City, addressing changes in direction previously approved by the City, or mandated by changing governmental laws. Information Provided By Client The master plan information used in the analysis shall be provided by the Client. KHA shall be entitled to rely on the completeness and accuracy of all information provided by the Client. Schedule Task I will be completed by the City with assistance from KHA following receipt of a signed copy of this Letter Agreement. Tasks 2 through 5 will be completed within four (4) months following receipt ofthe information required as part of Task 1. Task 6 will be completed in a timely manner based upon CIAC and City Council schedules, along with the requirements of Chapter 395 of the Texas Local Government Code. Additional services, if desired, will be performed in a timely manner upon authorization by the Client. Fee and Billing KHA will perform the services described in the Scope of Services for a lump sum fee of $71,000. The fee breakdowns provided above are for budgeting purposes only, and are not intended to represent a specific budget amount for each Lump Sum task. KHA reserves the right to reallocate the budget among tasks as determined necessary by KHA. Fees will be invoiced monthly based upon the percentage of services completed as of the invoice date. Payment will be due within 25 days of the date of the InVOIce. ~=~ Kimley-Horn and Associates, Inc. Mr. Barry LeBaron, AICP, March 1,2005, Page 11 Closure In addition to the matters set forth herein, our Agreement shall include, and shall be subject to, the Standard Provisions attached hereto and hereby incorporated herein. The term "the Client" as used in the attached Standard Provisions shall refer to the City of Colleyville. If you concur in all the foregoing and wish to direct us to proceed with the services, please have authorized persons execute both copies of this Agreement in the spaces provided below, retain one copy, and return the other to us. Fees and times stated in this Agreement are valid for sixty (60) days after the date of this letter. We appreciate the opportunity to provide these services to you. Please contact us if you have any questions. Very truly yours, KIMLEY-HORN AND ASSOCIATES, INC. 4/?~ G. Brad Tribble, P.E. Senior Vice President/Project Manager GBT: ,2005. CITY COUNCIL APPROVED APR 5 2005 A Official Seal: , Witness P:\000008.024\Colleyville\impacl_fee_update\c_ vil1e_impact_fee....Pf~sal_REV .doc KIMLEY -HORN AND ASSOCIATES, INC. STANDARD PROVISIONS (1) Consultant's Scope of Services and Additional Services The Consultant's undertaking to perform professional services extends only to the services specifically described in this Agreement. However, if requested by the Client and agreed to by the Consultant, the Consultant will perform additional services ("Additional Services"), and such Additional Services shall be governed by these provisions. Unless otherwise agreed to in writing, the Client shall pay the Consultant for the performance of any Additional Services an amount based upon the Consultant's then-current hourly rates plus an amount to cover certain direct expenses including in-house duplicating, local mileage, telephone calls, postage, and word processing. Other direct expenses will be billed at 1.15 times cost. Technical use of computers for design, analysis, GIS, and graphics, etc., will be billed at $25.00 per hour. (2) Client's Responsibilities In addition to other responsibilities described herein or imposed by law, the Client shall: (a) Designate in writing a person to act as its representative with respect to this Agreement, such person having complete authority to transmit instructions, receive information, and make or interpret the Client's decisions. (b) Provide all information and criteria as to the Client's requirements, objectives, and expectations for the project including all numerical criteria that are to be met and all standards of development, design, or construction. (c) Provide to the Consultant all previous studies, plans, or other documents pertaining to the project and all new data reasonably necessary in the Consultant's opinion, such as site survey and engineering data, environmental impact assessments or statements, zoning or other land use regulations, etc., upon all of which the Consultant may rely. (d) Arrange for access to the site and other private or public property as required for the Consultant to provide its services. (e) Review all documents or oral reports presented by the Consultant and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of the Consultant. (t) Furnish approvals and permits from governmental authorities having jurisdiction over the project and approvals and consents from other parties as may be necessary for completion of the Consultant's services. (g) Cause to be provided such independent accounting, legal, insurance, cost estimating and overall feasibility services as the Client may require or the Consultant may reasonably request in furtherance of the project development. (h) Give prompt written notice to the Consultant whenever the Client becomes aware of any development that affects the scope and timing of the Consultant's services or any defect or noncompliance in any aspect of the project. (i) Bear all costs incident to the responsibilities of the Client. (3) Period of Services Unless otherwise stated herein, the Consultant will begin work timely after receipt of an executed copy of this Agreement and will complete the services in a reasonable time. This Agreement is made in anticipation of conditions permitting continuous and orderly progress through completion of the services. Times for performance shall be extended as necessary for delays or suspensions due to circumstances that the Consultant does not control. If such delay or suspension extends for more than six months (cumulatively), Consultant's compensation shall be renegotiated. (4) Method of Payment Compensation shall be paid to the Consultant in accordance with the following provisions: (a) Invoices will be submitted by the Consultant to the Client periodically for services performed and expenses incurred. Payment of each invoice will be due within 25 days of receipt. The Client shall also pay to the Consultant all transaction taxes, if any, whether state, local, or federal, levied with respect to amounts paid hereunder, including but not limited to sales tax. The Consultant shall be compensated in U.S. dollars. Interest will be added to accounts not paid within 25 days at the rate of 12% per annum beginning on the 25th day. If the Client fails to make any payment due the Consultant under this or any other agreement within 30 days after the Consultant's transmittal of its invoice, the Consultant may, after giving notice to the Client, suspend services under this Agreement until all amounts due are paid in full. (b) If the Client objects to an invoice, it must advise the Consultant in writing giving its reasons within 14 days of receipt of the invoice or the Client's objections will be waived, and the invoice shall conclusively be deemed due and owing. (c) If the Consultant initiates legal proceedings to collect payment, it may recover, in addition to all amounts due, its reasonable attorneys' fees, reasonable experts' fees, and other expenses related to the proceedings. Such expenses shall include the cost, at the Consultant's normal hourly billing rates, of the time devoted to such proceedings by its employees. (d) The Client agrees that the payment to the Consultant is not subject to any contingency or condition. The Consultant may negotiate payment of any check tendered by the Client, even if the words "in full satisfaction" or words intended to have similar effect appear on the check without such negotiation being an accord and satisfaction of any disputed debt and without prejudicing any right of the Consultant to collect additional amounts from the Client. (5) Use of Documents All documents, including but not limited to drawings, specifications and data or programs stored electronically, prepared by the Consultant are related exclusively to the services described in this Agreement, and may be used only if the Client has satisfied all of its obligations under this Agreement. They are not intended or represented to be suitable for use, partial use or reuse by the Client or others on extensions of this project or on any other project. Any rev 07/04 modifications made by the Client to any of the Consultant's documents, or any use, partial use or reuse of the documents without written authorization or adaptation by the Consultant will be at the Client's sole risk and without liability to the Consultant, and the Client shall indemnify, defend and hold the Consultant harmless from all claims, damages, losses and expenses, including but not limited to attorneys' fees, resulting therefrom. Any authorization or adaptation will entitle the Consultant to further compensation at rates to be agreed upon by the Client and the Consultant. Any electronic. files are provided only for the convenience of the Client, and use of them is at the Client's sole risk. In the case of any defects in the electronic files or any discrepancies between them and the hardcopy of the documents prepared by the Consultant, the hardcopy shall govern. Only printed copies of documents conveyed by the Consultant may be relied upon. Because data stored in electronic media format can deteriorate or be modified without authorization of the data's creator, the Client has 60 days to perform acceptance tests, after which it shall be deemed to have accepted the data transferred. (6) Opinions of Cost Because the Consultant does not control the cost of labor, materials, equipment or services furnished by others, methods of determining prices, or competitive bidding or market conditions, any opinions rendered as to costs, including but not limited to opinions as to the costs of construction and materials, shall be made on the basis of its experience and represent its judgment as an experienced and qualified professional, familiar with the industry. The Consultant cannot and does not guarantee that proposals, bids or actual costs will not vary from its opinions of cost. If the Client wishes greater assurance as to the amount of any cost, it shall employ an independent cost estimator. Consultant's services required to bring costs within any limitation established by the Client will be paid for as Additional Services. (7) Termination The obligation to provide further services under this Agreement may be terminated by either party upon seven days' written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party, or upon thirty days' written notice for the convenience of the terminating party. In the event of any termination, the Consultant shall be paid for all services rendered and expenses incurred to the effective date of termination, and other reasonable expenses incurred by the Consultant as a result of such termination. If the Consultant's compensation is a fixed fee, the amount payable for services will be a proportional amount of the total fee based on the ratio of the amount of the services performed, as reasonably determined by the Consultant, to the total amount of services which were to have been performed. (8) Insurance The Consultant is protected by Workers' Compensation insurance, professional liability insurance, and general liability insurance and will exchange certificates of insurance upon request. If the Client directs the Consultant to obtain increased insurance coverage, or if the nature of the Consultant's activities requires additional insurance coverage, the Consultant will take out such additional insurance, if obtainable, at the Client's expense. (9) Standard of Care In performing its professional services, the Consultant will use that degree of care and skill ordinarily exercised, under similar circumstances, by reputable members of its profession in the same locality at the time the services are provided. No warranty, express or implied, is made or intended by the Consultant's undertaking herein or its performance of services, and it is agreed that the Consultant is not a fiduciary with respect to the Client. (10) Limitation of Liability In recognition of the relative risks and benefits of the Project to both the Client and the Consultant, the risks have been allocated such that the Client agrees, to the fullest extent of the law, and notwithstanding any other provisions of this Agreement, that the total liability, in the aggregate, of the Consultant and the Consultant's officers, directors, employees, agents, and subconsultants to the Client or to anyone claiming by, through or under the Client, for any and all claims, losses, costs or damages whatsoever arising out of, resulting from or in any way related to the services under this Agreement from any cause or causes, including but not limited to, the negligence, professional errors or omissions, strict liability or breach of contract or any warranty, express or implied, of the Consultant or the Consultant's officers, directors, employees, agents, and subconsultants, shall not exceed twice the total compensation received by the Consultant under this Agreement or $50,000, whichever is greater. Higher limits of liability may be negotiated for additional fee. Under no circumstances shall the Consultant be liable for lost profits or consequential damages, for extra costs or other consequences due to changed conditions, or for costs related to the failure of contractors to perform work in accordance with the plans and specifications. This Section 10 is intended solely to limit the remedies available to the Client, and nothing in this Section 10 shall require the Client to indemnify the Consultant. (11) Certifications The Consultant shall not be required to execute any certifications or other documents that might, in the judgment of the Consultant, increase the Consultant's risk or affect the availability, applicability, or cost of its insurance. (12) Dispute Resolution All claims by the Client arising out of this Agreement or its breach shall be submitted first to mediation in accordance with the Construction Industry Mediation Rules of the American Arbitration Association as a condition precedent to litigation. Any mediation or civil action by Client must be commenced within one year of the accrual of the cause of action asserted but in no event later than allowed by applicable statutes. rev 07/04 2 (13) Hazardous Substances and Conditions (a) Services related to determinations involving hazardous substances or conditions, as defined by federal or state law, are limited to those tasks expressly stated in the scope of services. In any event, Consultant shall not be a custodian, transporter, handler, arranger, contractor, or remediator with respect to hazardous substances and conditions. Consultant's services will be limited to professional analysis, recommendations, and reporting, including, when agreed to, plans and specifications for isolation, removal, or remediation. (b) The Consultant shall notify the Client of hazardous substances or conditions not contemplated in the scope of services of which the Consultant actually becomes aware. Upon such notice by the Consultant, the Consultant may stop affected portions of its services until the hazardous substance or condition is eliminated. The parties shall decide if Consultant is to proceed with its services and if Consultant is to conduct testing and evaluations, and the parties may enter into further agreements as to the additional scope, fee, and terms for such services. (c) Except to the extent of negligence, if any, on the part of the Consultant in performing services expressly undertaken in connection with hazardous substances and conditions, the Client agrees to hold harmless, indemnify, and defend the Consultant from and against any and all claims, losses, damages, liability, and costs in any way arising out or connected with the presence, discharge, release, or escape of hazardous substances or conditions of any kind, or environmental liability of any nature, in any manner related to services of the Consultant. (14) Construction Phase Services (a) If the Consultant's services include the preparation of documents to be used for construction and the Consultant is not retained to make periodic site visits, the Client assumes all responsibility for interpretation of the documents and for construction observation, and the Client waives any claims against the Consultant in any way connected thereto. (b) If the Consultant provides construction phase services, the Consultant shall have no responsibility for any contractor's means, methods, techniques, equipment choice and usage, sequence, schedule, safety programs, or safety practices, nor shall Consultant have any authority or responsibility to stop or direct the work of any contractor. The Consultant's visits will be for the purpose of endeavoring to provide the Client a greater degree of confidence that the completed work of its contractors will generally conform to the construction documents prepared by the Consultant. Consultant neither guarantees the performance of contractors, nor assumes responsibility for any contractor's failure to perform its work in accordance with the contract documents. (c) The Consultant is not responsible for any duties assigned to the design professional in the construction contract that are not expressly provided for in this Agreement. The Client agrees that each contract with any contractor shall state that the contractor shall be solely responsible for job site safety and for its means and methods; that the contractor shall indemnify the Client and the Consultant for all claims and liability arising out of job site accidents; and that the Client and the Consultant shall be made additional insureds under the contractor's general liability insurance policy. (15) Assignment and Subcontracting This Agreement gives no rights or benefits to anyone other than the Client and the Consultant, and all duties and responsibilities undertaken pursuant to this Agreement will be for the sole benefit of the Client and the Consultant. The Client shall not assign or transfer any rights under or interest in this Agreement without the written consent of the Consultant. The Consultant reserves the right to augment its staff with subconsultants as it deems appropriate due to project logistics, schedules, or market conditions. If the Consultant exercises this right, the Consultant will maintain the agreed-upon billing rates for services identified in the contract, regardless of whether the services are provided by in-house employees, contract employees, or independent subconsultants. (16) Confidentiality The Client consents to the use and dissemination by the Consultant of photographs of the project and to the use by the Consultant of facts, data and information obtained by the Consultant in the performance of its services. If, however, any facts, data or information are specifically identified in writing by the Client as confidential, the Consultant shall use reasonable care to maintain the confidentiality of that material. (17) Miscellaneous Provisions This Agreement is to be governed by the law of the State of Texas. This Agreement contains the entire and fully integrated agreement between the parties and supersedes all prior and contemporaneous negotiations, representations, agreements or understandings, whether written or oral. Except as provided in Section 1, this Agreement can be supplemented or amended only by a written document executed by both parties. Provided, however, that any conflicting or additional terms on any purchase order issued by the Client shall be void and are hereby expressly rejected by the Consultant. Any provision in this Agreement that is unenforceable shall be ineffective to the extent of such unenforceability without invalidating the remaining provisions. The non-enforcement of any provision by either party shall not constitute a waiver of that provision nor shall it affect the enforceability of that provision or of the remainder of this Agreement. rev 07/04 3