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R2007-179 2007-11-12 RESOLUTION NO. R2007 -179 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A CONTRACT FOR ENGINEERING SERVICES FOR PREPARATION OF A COMPREHENSIVE WATER AND SEWER RATE MODEL. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain contract for engineering services associated for a Comprehensive Water and Sewer Rate Model, 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 for engineering services associated for a Comprehensive Water and Sewer Rate Model PASSED, APPROVED and ADOPTED this the 1 ih day of November, A.D., 2007. c ~p~ TOM REID MAYOR ,""'::":'~R.'L~'~':',. /~ ~*,;:""",,:,~~~> f~/ '\~\ .1-: ';t>= ',~::::::~:,,:,:::~j ATTEST: C APPROVED AS TO FORM: o a-:: h,~ DARRIN M. COKER CITY ATTORNEY Exhibit "A" Resolution 2007-179 07 -0084 CONTRACT FOR PROFESSIONAL SERVICES THIS CONTRACT is entered into on November 12 ' 2007 by and between the City of Pearl and ("CITY") and HDR Engineering Inc. ("CONSULTANT"). The CITY engages the CONSULTANT to perform professional services for a project known and described as Water and Wastewater Cost of Service Study and Rate Model ("PROJECT"). SECTION I - SERVICES OF THE CONSULTANT The CONSULT ANT shall perform the following professional services to CITY standards and in accordance with the degree of care and skill that a professional in Texas would exercise under the same or similar circumstances: A. The CONSULTANT shall provide Services services as outlined in Exhibit A. See Exhibit A, attached, for a detailed SCOPE OF WORK and PROJECT schedule. B. The CONSULT ANT shall perform these services, including training staff and providing a document manual for a price not to exceed $52,000. C. The CONSULTANT acknowledges that the CITY (through its employee handbook) considers the following to be misconduct that is grounds for termination of a CITY employee: Any fraud, forgery, misappropriation of funds, receiving payment for services not performed or for hours not worked, mishandling or untruthful reporting of money transactions, destruction of assets, embezzlement, accepting materials of value from vendors, or consultants, and/or collecting reimbursement of expenses made for the benefit of the CITY. The CONSULT ANT agrees that it will not, directly or indirectly; encourage a CITY employee to engage in such misconduct. D. The CONSULTANT shall submit all final report documents in both hard copy and electronic format. Plans shall be Microsoft Office compatible. The software version used shall be compatible to current CITY standards. E. The CONSULTANT recognizes that all reports and documents or work product generated by the CONSULTANT under the CONTRACT shall be delivered to the CITY upon request, shall become subject to the Open Records Laws of this State. F. The CONSULTANT shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons, damages to property, or any errors and omissions relating to the performance of any work by the CONSULTANT, its agents, employees or subcontractors under this Agreement, as follows: (1) Workers' Compensation as required by law. -1- 10. Revised 7/30/07 (2) Professional Liability Insurance in an amount not less than $1,000,000 in the aggregate. (3) Comprehensive General Liability and Property Damage Insurance with minimum limits of $1,000,000 for injury or death of anyone person, $1,000,000 for each occurrence, and $1,000,000 for each occurrence of damage to or destruction of property. (4) Comprehensive Automobile and Truck Liability Insurance covering owned, hired, and non-owned vehicles, with minimum limits of $1,000,000 for injury or death of anyone person, $1,000,000 for each occurrence, and $1,000,000 for property damage. The CONSULTANT shall include the CITY as an additional insured under the policies, with the exception of the Professional Liability Insurance and Workers' Compensation. Certificates of Insurance and endorsements shall be furnished to the CITY before work commences. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled, and/or reduced in coverage or in limits ("Change in Coverage") except with prior written consent of the CITY and only after the CITY has been provided with written notice of such Change in Coverage, such notice to be sent to the CITY either by hand delivery to the City Manager or by certified mail, return receipt requested, and received by the City no fewer than thirty (30) days prior to the effective date of such Change in Coverage. Prior to commencing services under this CONTRACT, CONSULTANT shall furnish CITY with Certificates of Insurance, or formal endorsements as required by this CONTRACT, issued by CONSULTANT'S insurer(s), as evidence that policies providing the required coverage, conditions, and limits required by this CONTRACT are in full force and effect. G. The CONSULTANT shall indemnify and hold the CITY, its officers, agents, and employees, harmless from any claim, loss, damage, suit, and liability of every kind for which CONSULTANT is legally liable, including all expenses of litigation, court costs, and attorney's fees, for injury to or death of any person, for damage to any property, or errors in design, any of which are caused by the negligent act or omission of the CONSULTANT, his officers, employees, agents, or subcontractors under this CONTRACT. H. All parties intend that the CONSULTANT, in performing services pursuant to this CONTRACT, shall act as an independent contractor and shall have control of its own work and the manner in which it is performed. The CONSULT ANT is not to be considered an agent or employee of the CITY. SECTION II - PERIOD OF SERVICE This CONTRACT will be binding upon execution and end upon completion of work and delivery and training of staff on the rate model. -2- 10. Revised 7/30/07 SECTION III - CONSULTANT'S COMPENSATION A. The method of payment for this CONTRACT is not-to-exceed. Total compensation for the services performed shall $52,000. B. The CITY shall pay the CONSULTANT in installments based upon monthly progress reports and detailed invoices submitted by the CONSULTANT C. The CITY shall make payments to the CONSULT ANT within thirty (30) days after receipt and approval of a detailed invoice. Invoices shall be submitted on a monthly basis. Disputed items in the invoice will be deleted from payment pending outcome of dispute. SECTION IV - THE CITY'S RESPONSIBILITIES A. The CITY shall designate a project manager during the term of this CONTRACT. The project manager has the authority to administer this CONTRACT and shall monitor compliance with all terms and conditions stated herein. All requests for information from or a decision by the CITY on any aspect of the work shall be directed to the proj ect manager. B. The CITY shall review submittals by the CONSULTANT and provide prompt response to questions and rendering of decisions pertaining thereto, to minimize delay in the progress of the CONSULTANT'S work. The CITY will keep the CONSULTANT advised concerning the progress of the CITY'S review of the work. The CONSULTANT agrees that the CITY'S inspection, review, acceptance or approval of CONSULT ANT'S work shall not relieve CONSULTANT'S responsibility for errors or omissions of the CONSULTANT or its sub-consultant(s) or in any way affect the CONSULTANT's status as an independent contractor of the CITY. SECTION V - TERMINATION A. The CITY, at its sole discretion, may terminate this CONTRACT for any reason- - with or without cause -- by delivering written notice to CONSULTANT personally or by certified mail at HDR Engineering, Inc., 4401 West Gate Blvd, Suite 400, Austin, Texas 78745. Immediately after receiving such written notice, the CONSULTANT shall discontinue providing the services under this CONTRACT. B. If this CONTRACT is terminated, CONSULTANT shall deliver to the CITY all drawings, special provisions, field survey notes, reports, estimates and any and all other documents or work product generated by the CONSULT ANT under the CONTRACT, entirely or partially completed, together with all unused materials supplied by the CITY on or before the 15th day following termination of the CONTRACT. -3- 10. Revised 7/30/07 C. In the event of such termination, the CONSULTANT shall be paid for services performed prior to receipt of the written notice of termination. The CITY shall make final payment within sixty (60) days after the CONSULTANT has delivered to the CITY a detailed invoice for services rendered and the documents or work product generated by the CONSULTANT under the CONTRACT. D. If the remuneration scheduled under this contract is based upon a fixed fee or definitely ascertainable sum, the portion of such sum payable shall be proportionate to the percentage of services completed by the CONSULTANT based upon the scope of work. E. In the event this CONTRACT is terminated, the CITY shall have the option of completing the work, or entering into a CONTRACT with another party for the completion of the work. F. If the CITY terminates this CONTRACT for cause and/or if the CONTRACTOR breaches any provision of this CONTRACT, then the CITY shall have all rights and remedies in law and/or equity against CONSULTANT. Venue for any action or dispute arising out of or relating to this CONTRACT shall be in Brazoria County, Texas. The laws of the State of Texas shall govern the terms of this CONTRACT. The prevailing party in the action shall be entitled to recover its actual damages with interest, attorney's fees, costs and expenses incurred in connection with the dispute and/or action. CONSULT ANT and CITY desire an expeditious means to resolve any disputes that may arise between under this CONTRACT. To accomplish this, the parties agree to mediation as follows: If a dispute arises out of or relates to this CONTRACT, or the breach thereof, and if the dispute cannot be settled through negotiation, then the parties agree first to try in good faith, and before pursuing any legal remedies, to settle the dispute by mediation of a third party who will be selected by agreement of the parties. SECTION VI - ENTIRE AGREEMENT This CONTRACT represents the entire agreement between the CITY and the CONSULT ANT and supersedes all prior negotiations, representations, or contracts, either written or oral. This CONTRACT may be amended only by written instrument signed by both parties. SECTION VII - COVENANT AGAINST CONTINGENT FEES The CONSULTANT affirms that he has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT to solicit or secure this CONTRACT, and that he has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage brokerage fee, gift, or any other consideration, contingent upon or resulting from the award or making of the CONTRACT. For breach or violation of this clause, the CITY may terminate this CONTRACT without liability, and in its discretion, may deduct from the CONTRACT pnce or consideration, or otherwise -4- 10. Revised 7/30/07 recover, the full amount of such fee, commission, percentage brokerage fee, gift, or contingent fee that has been paid. SECTION VIII- SUCCESSORS AND ASSIGNS This CONTRACT shall not be assignable except upon the written consent of the parties hereto. The parties have executed this CONTRACT this 12th day of November ,2007. &t!? :: CITY OF PEARLAND, TEXAS HDR ENGINEERING, INe. ICE PRESIDENT -5- 10. Revised 7/30/07 Contract for Professional Services Between the City of Pearland, Texas and HOR Engineering, Inc. Exhibit A - Scope of Work & Project Schedule 1.0 Scope of Work In this scope of services, HDR proposes to develop a water and wastewater utilities financial planning model and rate study for the City of Pearland, Texas. An Integrated Financial Planning Model (IFPM) structure is proposed and costed as our basic effort. Other enhancements are proposed as optional efforts for the City to consider. Task 1 - Initial Policy Direction and Data Gathering HDR believes that an initial coordination workshop is critical to conducting an efficient and useful rate study. The rate consultant needs to adequately understand the policy goals, special concerns, and data availability of the City to focus the work, model development, and rate design features to reflect what is important to the City and is workable within budget and scheduling constraints. In this initial meeting, we will discuss possible City policy and financial goals that include promoting conservation, economic development, provisions for low or fixed-income needs, and other City policy goals, wastewater rate designs, volume versus demand components. We will also discuss legal and regulatory aspects that will be pertinent in the eventual cost rate design. At this session, we will also identify target cities for rate structure and competitive bill surveys, as well as plan for the Council policy workshop. Once the initial staff workshop is conducted, a Council workshop is proposed. This workshop will include: . Policy make level presentation of "rate making 101"; . Overview of general policy or regulatory issues for water and wastewater financial planning; and . Review of specific policy issues for Pearland to address such as conservation rates for water, rate caps for wastewater; setting minimum coverage and reserve requirements, evaluating customer classes and growth related issues. · Review best practices in rate structure and design with specific focus on those used in the local area. Also important to the effort is the extent of readily available information to conduct the study. The rate consultant will need detailed information for the water and wastewater utilities to be used in assessing customer use patterns, costs of service, and rate design. HDR will provide a detailed listing of data requested and will advise/assist any assigned City staff in the extraction of needed data. From our experience, the quality of data and timeliness with which needed information is made available are key to the success of this effort. Task 2 - Examine Utility Production and Customer Use Patterns Using information from the City's customer billing database and other data sources, HDR will examine historical trends in various customer characteristics including number of customers by type, total billed use by customer class and by volume, and base and seasonal billed service use by customer class and average connection. This information is useful in assessing future service demands versus facility capacity and identifying levels of unaccounted-for volumes. This information is needed to adjust billed service volume forecasts to needed supply quantities. These supply quantities are then used in calculating certain other costs within the model. Also from this information, HDR can advise the City on whether its existing customer classes are appropriate or whether new customer class distinction may be warranted. This data also serves as the basis for the service use and revenue forecasts. Task 3 - Develop Financial Planning Model HDR will also develop a "what-if' financial planning model as an analytical tool to address the water and wastewater financial and rate issues. The basic model will include planning, engineering, and financial modules sufficient to provide for general cost allocations and to test various rate structure designs. . Every HDR financial planning model is customized for our client's unique organizational and service situation... we do not use a canned model. This customization starts by adopting the City budget format and providing line-item control over the expenses and revenue forecast so that the planning model is also useful for draft development of the pending year's budget. It is our intent to develop the models for water and wastewater utilities within a single spreadsheet as separate, but related, modules. This will allow for the sharing and consistency of common planning and financing assumptions, allocation of common costs, and the ability to supplement other utility modules at a later date to provide a full capability for all utilities and the needed broad perspective at the combined fund level. More sophisticated cost allocations to the customer class level, provision of the cash- and utility- basis components for inside- and outside-city rates, extra efforts to design an automated upload of accounting data into the model and provision of a detailed Users Manual add to the development cost, complexity, or maintenance of the model and will be included as budgeted optional efforts where needed. It is our practice to involve the client's prospective model operator during development of the model by HDR, so that when it is completed, there is already a working understanding of the model design and use. Some clients have been adept at understanding the spreadsheet model, its calculations and links, and have not felt that they wanted or needed a detailed Users Manual, while others have requested this optional effort. Exhibit A 2 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. Ji}{ Task 4 - Assess Existing and Future Cost of Service and Revenue Requirements Identify Cost of Service. To identify the cost of service, relevant utility cost centers, and cost allocations, HDR will evaluate information on: (a) customer use patterns and demand factors, (b) historical and budgeted expenditures, (c) anticipated future capital, operating, and administrative expenses, (d) allocation of common costs to separate utilities and other cost centers, and (e) possible inter-fund transfers. To address the overall cost of service, the historical spending and current budget of each utility will be assessed for components, levels of spending, and trends. Possible "nested" costs for other utility services, such as for garbage, drainage, streets, etc. will be separately identified and excluded. Departmental costs narrowly attributable to one utility will be identified, and costs common to more than one utility (administration, utility business office, workshops or equipment, etc.) will be allocated to each respective utility. . This task effort will identify the base-year (most recent historical year) cost of service assessment. Using cost trends and other known spending plans, HDR will use the Integrated Financial Planning Model to project the utility costs for the test-year (pending fiscal year) and later years in the ten-year forecast. Any prospective new costs will be examined as to possible effects upon the test-year's cost allocation percentages, and the pending year's costs will then be allocated to the appropriate customer classes. Determine Revenue Requirements. Given the prospective overall cost of service by utility and by customer class, HDR will work with City staff to gain concurrence on initial target revenue requirements for rate-setting purposes. Factors to be considered in setting revenue requirements will include: . Consideration of weather influences on revenue, . Operating reserves, debt coverage ratios, or other bond covenant requirements. . Fee and other income, . Adjustments for non-collection of bills, and . Other possible issues. Once the initial model framework is developed, HDR will calibrate the model against the last full fiscal year's data to see if the model reasonably predicts known revenues. Once assured of reasonable model calibration, our team will then investigate various options for modified rate structure designs (as discussed below), or if the current rate structure design is deemed adequate, simply consider changes in service pricing levels. Task 5 - Evaluate Current Rates & Make Recommendations for Future Rates Given the targeted revenue requirement by utility and customer class and considering customer use patterns and their effect upon the cost of service, HDR will review the current rate structure and potential alternative rate design approaches for: · ability to recover targeted revenue requirements; Exhibit A 3 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. fill . fairness to customer classes; . ease of implementation, administration, and understanding; and . promotion of utility and City policy goals. In considering appropriate minimum or fixed monthly charges, various factors will be assessed, including meter costs, account maintenance costs, and City policy goals for revenue stability, low/fixed income affordability, resource conservation, etc. As indicated in our proposed coordination efforts, we recommend a workshop with City staff once the initial model framework is developed. This workshop will review the cost of service and cost allocation findings, target initial revenue requirements, discuss methods of incorporating City policy goals, consider rate design possibilities, and discuss their political and administrative feasibility. HDR will also calculate sample monthly bills for representative City customers and provide a comparison with other cities' typical water and wastewater bills for representative levels of monthly use. After consideration of City comments and direction, the HDR team will finalize the initial model framework and develop the draft assessment report outlining the current and prospective customer use patterns, cost of service and cost allocation analyses, anticipated revenue requirements, rate structure options evaluated, and initial rate recommendations. Our staff is sensitive to the fact that good rate-making is both an "art" and a "science" and involves an optimal balancing of cost of service, fairness, revenue stability, affordability, ease of understanding and administration, and political considerations. Task 6 - Public Information and Customer Communications Coordination A key factor in any new rate structure or pricing change is the ability to effectively communicate that information to policy makers, staff and the community. The model and the report will include many "lift-able" schedules and summaries to assist staff in communicating samples bills, water and wastewater rate surveys, reasons for rate increases and structures changes, and overall issues impacting the City's water and wastewater utilities. This proposal anticipates that HDR will assist City finance, public works and public information staff in creating necessary documents and presentations to communicate the City's message. Citizen focus groups or additional public hearings apart from the Council presentations can be added to the scope and cost of service. The scope does anticipate one meeting or work session with key customers and stakeholders. HDR has expertise in these areas and can provide added support at the City's request. Task 7 - Coordination and Reporting Coordination. HDR proposes close coordination with the City staff through regular phone and e-mail communications, work visits, and scheduled coordination meetings, workshops, or presentations with staff and/or stakeholde~s at key milestones in the effort (see Figure 3-1). Our budget assumes five work sessions with City staff and three presentations to the City Council. Exhibit A 4 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. fill Reporting. HDR proposes to prepare 20 each of draft and final assessment reports. The draft report will contain supporting details and an Executive Summary suitable for City management, Council, and stakeholder communication. Based on subsequent comments and City direction, our team will make any reasonable requested changes to the model framework or rate recommendations, and the report Summary will be revised to final form. Deliverables. To summarize, the HDR Team will provide the City with the following major deliverables from the proposed efforts: . 20 copies each of draft and final reports, . a copy of the final electronic Excel-based cost of service/rate model developed in the study process, and . if optioned, an on-site training workshop and detailed model Users Manual. . The proposed schedule for supplying these deliverables is shown in Section 3.2. Optional Tasks HDR's model development process is designed to include the model coordinator. Some clients are adequately prepared by the end of the process and do not feel the need for additional training and documentation. Some of HDR's rate model clients retain us to do update the model as often as annually. In both of those instances, additional training and documentation is not required and therefore not included in the base cost of services. If Pearland desires to create fully self-sufficient in-house model update capability, and wants further documentation and training, the following services are available at the City's option. The update services typically consist of updating the model for customer demand data if needed, updating current revenues, departmental expenses, contractual and capital project changes. Also included are any minor model improvements HDR has made to its overall modeling template and one to two on-site staff workshops. These updates also provide City staff with HDR assistance in planning and analyzing various utility and rate issues as they arise. Task 8 - Training Workshop A two-part, on.-site training workshop is proposed, if optioned. The first part of the session would target senior management and other decision makers to provide an overview of the model capabilities and complexities. This session would be focused on the policy and "what-if' capabilities offered by the model. The second part of the session would be a much more detailed workshop with the City's designated model coordinator and limited other technical staff. The second session would be focused on specific functionality, layout and update methods for the model. HDR expects both sessions would be accomplished in a one day, on-site session with the City staff. Task 9 - Documentation Manual A detailed model layout and documentation manual, customized to Pearland's actuallFPM, will be provided to City staff if optioned. Exhibit A 5 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. fiR 2.0 Project Timelioo The anticipated schedule for the model development and study efforts is shown in Figure 2-1. The viability of this schedule is greatly dependent upon the timeliness of data provision, policy direction, and actions by the City. Figure 2-1 Anticipated Study Schedule City of Pearland Water and Wastewater Rate Study A l' 'f 2007/2008 C IVI les Dec 07/Jan Feb/Mar Apr/May Jun/Jul NOTICE TO PROCEED x Task 1 -Initial Policy Direction & Data Gathering Data requests made to City City provides data to Consultant Consultant gathers other data Council & staff review policy options & set direction Task 2 - Examine Utility Production & Customer Use Patterns Task 3 - Develop Financial Planning Model Task 4 - Cost of Service Assessment & Determine Rev Requirements Task 5 -Initial Rate Structure Design and Recommendations Task 6 - Public Information & Customer Communications Task 7 - Reporting Develop draft Cost of Service/Rate Report City review of draft Revise Rate Report to final Task 7 - Coordination Exhibit A 6 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. A - Regular City/Consultant coordination meeting B - City/Consultant rate design workshop with City Council I-il\ 3.0 Project Team HDR would staff the study effort with highly knowledgeable professionals. As shown below in Figure 5-1, Ms. Susan Morgan, CPA will serve as the HDR Project Manager and take a lead role in the preparation of the financial modeling and rate study efforts. She would be assisted in the effort by Mr. Grady Reed. Mr. Stan Williams, P.E. has extensive experience in the area and will serve as a local resource and provide engineering oversight on the project. Demand & Use Patterns Grady Reed En~ Stan Williams, P.E. Figure 5-1 Proposed Management and Organization Exhibit A 7 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. ill\ 4.0 Cost of Services HDR proposes to conduct the water, and wastewater rate study efforts for an amount of $48,000, plus additional optional efforts, for a total of $52,000. These fees are proposed on a per diem basis, not to be exceeded without advance written authorization from the City. Extra coordination, if desired, can be provided on a per diem basis at the hourly rates shown in Table 4-1. Table 4.1 Proposed Study Cost of Services Activity TABLE 9-1 PROPOSED STUDY COST OF SERVICES Person-Holl' Effort Project Project Senior Financial Total Principal Manager Engineer Analyst Clerical Total Hours Cost A. LABOR EXPENSES Task 1 - Inllal Policy Dlrecllon & Data Gathering Task 2 - examine utility Production & Customer Use Patterns Task 3 - Develop Financial Planning Model Task 4 - Assess Exlsllng & Future COS & Revenue Req. Task 5. Evaluate Current Rates & Recommend Future Rates Task 6 - Pl1lllc Information & Customer Communicallons Task 7 - CoordlnaUon, Meellngs & Reporllng Total Labor Hours Total Loaded Labor Expense per Hour $ Total Loaded Labor Expense $ 8.0 2.0 12.0 6.0 72.0 24.0 18.0 12.0 56.0 200.0 147.87 $ 29.574 $ 4.0 2.0 2.0 26.0 $ 4,498 42.0 $ 5,665 72.0 $ 10.647 26.0 $ 3.944 26.0 $ 4,242 22.0 $ 3.111 80.0 $ 12.443 294.0 $ 44,549 32.0 2.0 8.0 2.0 8.0 30.0 197.50 $ 5,925 $ 2.0 6.0 8.0 8.0 16.0 32.0 16.0 248.90 $ 121.40 $ 73.94 3,982 $ 3,885 $ 1.183 B. NON-LABOR EXPENSES Item Urit Total Quantity Price Cost 8 days $ 232.50 per trip $ 1,860 294 labor hours $ 3.70 per hour $ 1.088 40 ea. $ 10 I.s. $ 400 1 ea. $ 103 I.s. $ 103 $ 3,451 Travel - Mileage & Expenses - RIT Austi'lto Peartand Technology Charge Reproduction Supplies Total Non-Labor Expenses C. TOTAL PROJECT BUDGET $ 48,000 D. Optional Items T8$k 8 - Training workshop (at cJfent ste) Task 9 - Documeltatfon manual $ 2,000 $ 2.000 $ 52,000 E. Total Project Budget with Optional Items Exhibit A 8 Contract for Professional Services between City of Pearland and HDR Engineering, Inc. lil{