R2007-022 2007-02-26
RESOLUTION NO. R2007 -22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A MAINTENANCE CONTRACT WITH ECO RESOURCES,
INC. FOR MAINTENANCE SERVICES ASSOCIATED WITH THE WATER
AND SEWER INFRASTRUCTURE SERVING THE AREA PREVIOUSLY
KNOWN AS BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.1.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain contract by and between the City of Pearland and ECO
Resources, Inc., a copy of which is attached hereto as Exhibit "A" and made a part hereof
for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest a contract with ECO Resources, Inc., for maintenance
services associated with the water and sewer infrastructure serving the area previously
known as Brazoria County Municipal Utility District No.1. .
PASSED, APPROVED and ADOPTED this the 26th day of February, A.D., 2007.
-----'Jc>>zfL
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
(J~ /t.rJfl-
DARRIN M. COKER
CITY ATTORNEY
R2007 -22
File No. 07 -0013
A PROFESSIONAL SERVICE CONTRAC1-'
BET\VEEN
ECO RESOURCES, INC.
AND
THE CI1rr OF PEARLAND
Submitted By:
e
ECO Resources, Ine.
Janu;uy, 2007
TABLE OF CONTENTS
Pa2e
RECITALS .................... .............................. .......... ......... ............................... ............ ...........................1
1. BASIC SERVICES TO BE PERFORMED BY ECO
1.00 Basic Services.......................................................................................... ..............................2
1.01 Certified Personnel......... ............. ..................... .............................. .... ............. ...................... 2
1.02 24-Hour Service Center............................... ........................................................................ 2
1.03 Operational Meetings........... .... ........................................................ ..................................... 2
1.04 Monthly Operations Report................................ ................................ ................... ................2
1.05 Operational Budgeting............... .................... ..................................... ......................... ........3
1.06 Correspondence and Inquiries............................................................................. ......... .... .....3
1.07 Customer Relations.................................. ............ ..... ..........................................................3
II. OTHER OPERATIONAL SERVICES TO BE PERFORMED BY ECO
2.00 Other Operational Services.......... ................... ............................. ....... ........ ................. ........3
2.01 Emergency Repairs................................................................................................................ 4
2.02 Non-Emergency Repairs............... ......... ................... ......... .......... ..................... ............. .... ....4
2.03 Water Quality Complaints.................................. ..................................................................5
2.04 Fire Hydrant Locations............... ............... ....... ............................. ......... .... .... ................. ......5
2.05 Other Laboratory Testing.................. ..................................................................................... 5
2.06 Materials Purchasing............................................................................................................ 5
III. INSURANCE................ ........................... ....... ............ .................................................. ....__......... 5
IV. GUARANTIES. INDEMNITY. AND LIMITATIONS
4.00 Guaranties......... ............................. ....... ............ ......................... .................. .................... .... 6
4.01 Damage to Facilities...................... .......... ............. .... ..... .... ........ ............... ...................... ....... 7
4.02 Indemnity ......... ........... .... .... .... ....... ... ... ..... ....... ...... ... ......... .... ....... ..................... ....................7
4.03 Public Utility Indemnification........................................................ ......................................8
4.04 Reasonable Diligence.................. ...... ... ..... ....... ....... ... ..... .... ........... ........ .... ..... .... ........ ..... .... ..8
4.05 Force Majeure........... ................... ......................................... ................................ ................. 8
4.06 Compliance with Applicable Laws..................................... ..................................................9
V. PAYMENTS ..................... ......................... ....... ............ .................................................. _..........9
VI. TERM. TERMINATION. AND RECORDS
6.00 Term. ........................ ........................ ....... ............. ....... ... .......... .......................... .00..............9
6.01 Termination........... .... ....... ........................... ...........................................................................9
6.02 Increase/Decrease in Service.................................................................... ........................... 10
VII. MISCELLANEOUS
7.00 Record Drawings... .............................................................................................................1 0
7.01 Identification........................................................................................................................ 10
7.02 Modification................................................................................................................... ..... 10
7.03 Assignability ..................... ............. .................... ........... ....... ............... .............................__11
7.04 Independent Contractor....................................................................................................... .11
7.05 Notice................................................................................................................................... 11
EXHIBITS
'A' Facilities.. ....................... .............. ................... ............. .......................... ...... .............__. ..... 13
'B' Compensation for Services... ................ ............................. .................................................14
'C' Rates/Personnel, Equipment, and Billing & Collections..................................................... 15
STATE OF TEXAS
s
COUNTY OF BRAZORIA S
A PROFESSIONAL SERVICE CONTRACT
This Professional Service Contract ("Contract") is entered into as of this
day of
, 2007 by and between the City of Pearland, a body politic and corporate and governmental
agency of the State of Texas organized under the provisions of Article XVI, Section 59, Texas
Constitution ("the CITY"), and ECO Resources, Inc., a Texas Corporation ("ECO").
RECITALS
The CITY owns and operates a water distribution and wastewater collection utility system
consisting of the facilities attached hereto, and described in Exhibit' A' ("Facilities") located in the area
formerly referred to as "Brazoria County Municipal Utility District #1" (BCM1). The CITY, to the
best of its knowledge, affirms to ECO that the Facilities I) have been built in accordance with all
applicable local, state and federal regulations, 2) are in good working order, 3) do not contain any
known defective equipment and 4) are suitable and adequate for the reasonable need of the CITY's
present and future customers.
This contract provides for ECO to furnish to the CITY certain servIces for the proper
maintenance and operation of the Facilities located in BCMI; and to receive compensation from the
CITY for those services rendered, all in accordance with the following terms and conditions. No other
present or future CITY owned facilities are contemplated in this contract.
Brazoria County MUD I Service Area
Distribution and Collection
ECO Resources, Incorporated
January, 2007
I.
BASIC SERVICES TO BE PERFORMED BY ECO
Section 1.00. Basic Services. ECO shall perform all of the basic services stated in this
Article I. The cost for the basic services under this agreement shall be paid by the CITY to ECO in
accordance with paragraph I of Exhibit 'B' attached hereto.
Section 1.01.
Certified Personnel. The Facilities shall be operated under the direct
supervision of personnel who possess valid Certificates of Competency as required by the State of
Texas, each of whom shall maintain continuing education competency certifications consistent with
requirements of the State of Texas.
Section 1.02. 24-Hour Service Center. ECO shall maintain and operate a Service Center
(the "Service Center"), 24 hours a day, each and every day of the year. The Service Center shall provide
a communications interface between the CITY and ECO management and field personnel. The Service
Center shall maintain, to the extent reasonably possible, the ability to operate during natural disasters.
Section 1.03.
Operational Meetinl!s. A representative of ECO shall attend scheduled
meetings which have an agenda item pertaining to the operations of the Facilities under this Contract.
Section 1.04. Monthlv Ollerations Reoort. ECO shall submit to the CITY a monthly
operations report which shall include, a minimum the following information:
l.Total service connections
2.Estimated population
3.Summary of maintenance and repair backcharges
4.Summary of maintenance and repair by facility classification
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ECO Resources, Incorporated
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5.Summary of customer complaints and actions taken to resolve same
6.Copies of all reports and correspondence made by ECO to local, state or federal regulatory
agencies on behalf of the CITY
A clear audit trail of all ECO transactions on behalf of the CITY shall be maintained by ECO. Records
of such transactions shall be made available to the CITY's staff and auditor during normal working
hours. ECO shall cooperate in and provide adequate working space for the conduct of audits.
Section 1.05. Ooerational Bude:etine:. ECO shall coordinate with the CITY's staff to
prepare an operations budget for review and approval by the CITY each year as part of the CITY's
annual budgeting process. ECO shall work with the CITY's staff to review and report the CITY's budget
performance at least quarterly throughout the CITY's fiscal year.
Section 1.06. Corresoondence and Inauiries. ECO shall respond to all correspondence
and/or inquiries from the CITY's staff, consultants or customers in a prompt and professional manner.
Section 1.07. Customer Relations. ECO shall render to the CITY any and all reasonable
assistance in the promotion of good relations with the CITY's customers.
II.
OTHER OPERATIONAL SERVICES TO BE PERFORMED BY ECO
Section 2.00. Other Ooerational Services. ECO shall provide the operational services
stated in this Article II. The CITY shall pay ECO for such services in accordance with the rates for
personnel and equipment reflected in Exhibit 'C', attached hereto, and the materials and sub-contract
Brazoria County MUD I Service Area
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ECO Resources, Incorporated
January, 2007
provisions reflected in paragraphs III and IV of Exhibit' B', as applicable, unless otherwise noted in this
Article II.
Section 2.01. Emen!encv Reoairs. ECO shall respond to any emergency (as hereinafter
defined) throughout the year regardless of the day or the time of day. In all cases where, in the opinion
of ECO, the estimated costs of repair shall exceed the dollar amount specified as "Authorized
Maintenance Level" in Exhibit 'B'. ECO shall contact the authorized CITY representative to notify the
CITY of the particular situation. The fact that said notification cannot be made in a timely manner shall
neither relieve ECO of its responsibility to perform the required repair, nor limit the cost of repairs billed
in accordance with the pricing covenants of this contract.
Emergencies are defined as, but are not limited to:
I.A hazardous condition;
2.A loss of water pressure, or senous degradation of water quality at one or more
customer locations;
3.A blockage of any type in the sewage collection system; or
4.A condition which, in the opinion of ECO, or any authorized CITY representative,
poses an immediate threat to develop into one of the three emergencies listed
above.
Section 2.02. Non-Emen!ency Reo airs. ECO shall, during its regular work day, perform
repairs which are not emergencies, as defined in Section 2.0 I above. ECO shall schedule such non-
Brazoria County MUD I Service Area
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ECO Resources, Incorporated
January, 2007
emergency repairs on a first-call, first-serve basis, unless specifically asked to accelerate its response to
a particular item by an authorized CITY representative. ECO must receive approval from the authorized
CITY representative prior to performing non-emergency repairs when, in ECO's opinion, the estimated
cost of said repair shall exceed the dollar amount specified as "Authorized Maintenance Level" in
Exhibit 'B'.
Section 2.03.
Water Oualitv Complaints.
ECO shall investigate each water quality
concern or complaint received from the CITY or the CITY's customer. If required, ECO shall flush the
water main in response to each customer's water quality concern or complaint.
Section 2.04. Fire Hydrants Locations. ECO shall replace, install, or repair blue dot
reflectors on the roadway adjacent to each hydrant as necessary.
Section 2.05. Other Laboratorv Testin~. ECO shall perform, or have performed, other
tests, including but not limited to, those requested by the CITY, the TCEQ, the EPA, or any other
governmental agency with jurisdiction over the CITY's facilities. The CITY shall reimburse ECO
without markup for the actual costs incurred by ECO for the sampling and laboratory analysis.
Section 2.06. Materials Purchasilll?:. ECO shall purchase and deliver materials required to
provide services under this Contract, and shall bill the CITY for such materials at actual cost plus the
administrative fee described in Exhibit' B'.
III.
INSURANCE
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ECO Resources, Incorporated
January, 2007
ECO shall have and maintain throughout the term of this Contract, and shall deliver to the
CITY certificates of insurance evidencing the following insurance coverage:
1. Workers Compensation as prescribed by law
Statutory
2. Comprehensive General Liability
$10,000,000
3. Pollution Coverage
$10,000,000
4. Completed Operations - Aggregate
(Coverage for worked performed)
$10,000,000
5. Vehicle Liability/Excess Liability
$1,000,000
6. Employer's Liability
(Covers criminal or fraudulent acts
of our employees)
$2,000,000
Policies shall name the CITY as an additional insured, contain a waiver of subrogation in favor
of the CITY, and shall provide that they cannot be changed, terminated or cancelled without 30 day prior
notice to the CITY. Each such policy shall contain a primary endorsement stating "such coverage as is
afforded by this policy for the benefit of the additional insured(s) is primary and any other coverage
maintained by such additional insured(s) shall be non-contributing with the coverage provided under this
policy." Failure by ECO to carry such insurance shall constitute a default by ECO under the contract
and the CITY shall have the right to immediately terminate this contract by giving written notice to
ECO.
IV.
GUARANTIES. INDEMNITY AND LIMITATIONS
Section 4.00. Guaranties. ECO shall use generally accepted business practices in procuring
materials and equipment. ECO shall neither be responsible nor liable for any guaranty or guaranties of
or in connection with such materials or equipment. ECO shall use reasonable efforts to obtain the
Brazoria County MUD 1 Service Area
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ECO Resources, Incorporated
January, 2007
standard guaranties applicable in the particular industry manufacturing such materials or equipment, and
shall assign same to the CITY.
Section 4.01. Dama!!e to Facilities. ECO shall not be required for repair or replacement any
of the Facilities or system damaged due to flood, fire, explosion, riot, revolution, civil disturbance, war,
acts of God or due to the acts or omissions of any entity or person other than ECO, its employees,
agents, representatives or subcontractors. ECO shall notify the CITY of such damage, both orally and in
writing, as soon as possible after the damage occurs.
Section 4.02. Indemnity.
AS PART OF THE CONSIDERATION FOR THE
CONTRACT, ECO, FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, AGREES TO
INDEMNIFY AND HOLD HARMLESS THE CITY AND ITS OFFICERS, DIRECTORS,
REPRESENTATIVES AND AGENTS, FROM EVERY ACTUAL LOSS, DAMAGE, INJURY,
COST, EXPENSE, CLAIM, JUDGMENT OR LIABILITY OF EVERY KIND OR CHARACTER,
WHETHER IN CONTRACT, TORT OR OTHERWISE, WHICH ARISES DIRECTLY (BUT
NOT INDIRECTLY) FROM ECO'S WILLFUL, INTENTIONAL, RECKLESS OR
NEGLIGENT (WHETHER ACTIVE, PASSIVE OR GROSS) ACTS OR OMISSIONS RELATED
TO OR ARISING FROM THIS CONTRACT. THIS INDEMNITY AND HOLD HARMLESS
AGREEMENT SHALL APPLY WHETHER SUCH ACTS OR OMISSIONS ARE CONDUCTED
BY ECO OR ANY SUBCONTRACTOR OR AGENT OF ECO.
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ECO Resources, Incorporated
January, 2007
Section 4.03. Public Utility Indemnitv. The CITY acknowledges that during the term of this
agreement, ECO may be required to perform emergency repairs on a portion of the Facilities located
within easements wherein other public utilities may have facilities. The CITY agrees that during such
emergency repairs, as long as ECO exercises the amount of care exercised by a reasonably prudent party
in such situation, the CITY shall, to the extent permitted by applicable law, hold ECO harmless from any
and all damage to the facilities of the other public utilities, provided, ECO understands and agrees that
this hold harmless is specifically limited to damage of said facilities of the other public utilities and does
not extend to any other losses, damages or claims.
Section 4.04 Reasonable Dilil!ence. ECO shall use due diligence and good business practices
in the operation of the CITY's Facilities. ECO shall be liable for any direct or indirect loss, injury or
damage resulting from the diminution or interruption of service within the CITY'S Facilities which is
caused by the shallful misconduct or negligence (whether active, passive or gross) of ECO, its
employees, representatives, agents or subcontractors.
Section 4.05. Force Maieure ECO shall not be in default if performance of ECO's obligations
under this Contract are delayed, disrupted or become impossible because of any act of God, war,
earthquake, fire, strike, accident, civil commotion, epidemic, act of government, its agencies or offices,
or any other cause beyond the control of the parties. Upon occurrence of any such event, ECO shall
operate the Facilities to the best of its ability under the circumstances, and ECO shall not be responsible
for any damages, fines, penalties or claims resulting therefrom. If any additional expense is incurred by
ECO in such operation, that expense shall be deemed to be an extraordinary expense and shall be paid
by the CITY to ECO in accordance with paragraph V of Exhibit 'e'.
Brazoria County MUD I Service Area
Distribution and Collection
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ECO Resources, Incorporated
January, 2007
Section 4.06. Comoliance with Aoolicable Laws. ECO shall operate the Facilities in
compliance with all applicable local, State, and federal laws, rules and regulations.
V.
PAYMENTS
ECO shall review each monthly invoice with CITY staff and upon approval the CITY shall pay ECO
monthly for services to be rendered under this Contract in accordance with the fee schedules contained
in Exhibits 'B' and 'C'.Ifthe CITY fails to pay to ECO the undisputed invoiced amount within 45 days
after receipt of the invoice, the CITY shall pay to ECO, in addition to the amount owed, interest at a rate
of one percent (1 %) per month, which interest shall accrue beginning the 46th day following receipt of
the invoice until payment is received by ECO.
VI.
TERM. TERMINATION. AND RECORDS
Section 6.00. Term. This Contract commences on
and shall remain in
effect thereafter for a period of one (1) year. This Contract shall then automatically renew from year to
year subject to the rights of either party to terminate the Contract.
Section 6.01. Termination. This contract may be terminated by either party, without cause,
by the giving of thirty-day (30) written notice of such termination to the other party at its Address of
Record (Section 10.06).
Brazoria County MUD I Service Area
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ECO Resources, Incorporated
January, 2007
Section 6.02. Increase or Decrease in Service. In the event either ECO or the CITY
determine that any of the scope of services to be provided by ECO pursuant to this Contract should be
either increased or decreased as a result of increased scope of services, governmental regulations,
technological advances, or assignment of the CITY's obligations and interests in this Contract, ECO and
the CITY agree to negotiate in good faith with respect to the proposed increase or decrease in services,
and formally amended said Contract with negotiated change in the fees to be charged by ECO to the
CITY.
VII.
MISCELLANEOUS
Section 7.00. Record Drawinl!s. The CITY shall provide ECO with a complete set of
record drawings of the Facilities. ECO shall maintain these drawings in a manner which allows their
efficient and effective use in solving system problems.
Section 7.01. Identification. ECO employees shall readily identify themselves when
communicating within the CITY and with CITY customers. ECO maintenance and operating personnel
shall wear pictured I.D. cards and wear distinctive clothing bearing ECO's name. ECO vehicles shall
display ECO's name. All other ECO employees shall possess pictured I.D. cards.
Section 7.02. Modification. Modification of this Contract may be made only by a written
document signed by ECO and the CITY.
Brazoria County MUD 1 Service Area
Distribution and Collection
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ECO Resources, Incorporated
January, 2007
Section 7.03. Assil!nabilitv. Neither ECO nor the CITY may assign its interest ill this
Contract without the prior written consent of the other party.
Section 7.04. Indeoendent Contractor. ECO is not the CITY's employee. ECO serves the
CITY solely as an independent contractor.
Section 7.05. Notice. Any notice required under this Contract shall be in writing and sent by
certified mail return receipt requested to the intended party's address of record. Notice shall be deemed
given when mailed to the following addresses:
ECO
ECO Resources, Inc.
12535 Reed Road
Sugar Land, Texas 77478
Attn: Regional Vice-President
CITY
The City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Attn: Danny Cameron
SIGNED AND AGREED TO this 1 ~ dayof JcJ.f\4('\"'~
, 2007.
Regional Vice President
SIGNED AND AGREED TO this ~day of ~.tbn,t{uj
,2007.
Brazoria County MUD 1 Service Area
Distribution and Collection
11
ECO Resources, Incorporated
January, 2007
Forthec:~
BY:~
By:
--
Brazoria COl/nty MUD 1 Service Area
Distribl/tion and Collection
12
ECO Resol/rces, Incorporated
Janl/ary, 2007
EXHIBIT' A'
FACILITIES
The CITY's water distribution and wastewater collection system in the service area formally known as
BCMl consists of the following facilities:
WATER DISTRIBUTION
A water distribution system capable of carrying water at adequate volume and pressure to each of its
customers, including all Facilities up to and including the 151 customer connection.
WASTEWATER COLLECTION
A sanitary sewer collection system capable of transporting domestic wastewater from each customers
location, including laterals to the property line within the right of way.
Brazoria County MUD 1 Service Area
Distribution and Collection
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ECO Resources, Incorporated
January, 2007
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EXHIBIT 'B'
COMPENSATION FOR SERVICES
I. BASE OPERATIONS FEE: For and in consideration of services outlined in the Contract
and rendered to and on behalf of the CITY by ECO, the CITY agrees to pay to ECO, each
month, a base operations fee equal to:
1. A sum equal to $1.00 for each meter serving a single family residential dwelling,
plus
2. A sum equal to $1.00 per 10,000 gallons of metered water usage for each non-
residential meter.
II. AUTHORIZED MAINTENANCE LEVEL: Consistent with the principles of effective cost
containment, efficient maintenance and maximization of operational procedures, the CITY
authorizes ECO to perform non-emergency repairs when, in ECO's opinion, the cost to the
CITY of such repairs shall not exceed $1,000.00.
III. MATERIALS: Cost of materials billed and/or sold to the CITY by ECO shall include an
administrative fee of 10%.
IV. EXTRAORDINARY SERVICES: ECO may render additional services not specified in this
Contract. Extraordinary services not anticipated and not specified in this Contract may also be
requested of ECO by the CITY. The CITY and ECO shall in good faith negotiate the amount
to be paid by the CITY to ECO for such extraordinary services.
Brazoria County MUD 1 Service Area
Distribution and Collection
14
ECO Resources, Incorporated
January, 2007
EXHIBIT "C"
RATES
PERSONNEL(!)
Straight Time Rate Overtime Rate
Classification per Hour per Hour
Skilled Laborer $24.50 $36.75
Field Service Representative $27.00 $40.50
Crew Member $31.50 $47.00
Certified Operator $32.00 $48.00
Equipment Operator $32.00 $48.00
Technician $48.00 $72.00
Foreman $45.00 $67.50
Supervisor $45.00 $67.50
Manager $55.00 $55.00
Information Technology Technician $50.00 $50.00
Administrative $35.00 $35.00
Brazoria County MUD I Service Area
Distribution and Collection
15
ECO Resources, Incorporated
January, 2007
EXHIBIT "C"
RATES (continued)
EOUIPMENT
Minimum
Classification Hourly Rate Hours
16 ft. Trailer $15.00 None
Service Truck $15.00 None
Maintenance Truck $35.00 None
1- Ton Flat Bed Truck $35.00 2
Dump Truck $35.00 2
2- Ton Winch Truck $45.00 2
Air Compressor $40.00 None
Television Truck $120.00 3
Back Hoe Rig $60.00 2
7 -Ton Crane Truck $60.00 2
High Pressure Pipe Cleaner (Hydra) $66.00 3
Vactor Truck (plus dump fee) $120.00 3
(1.) These rates shall be in effect for year one (1) of the contract. For subsequent years the rates
shall be adjusted up or down based on the accumulated percentage rate of increase/decrease from
the previous year of the contract, based on the most current Consumer Price Index, as published
by the U.S. Bureau of Labor Statistics (CPI-U), Houston/Galveston Region.
Brazoria Coullly MUD 1 Service Area
Distribution and Collection
16
ECO Resources, lncorporated
January, 2007