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Home My WebLink About000594 Amendment Port Angeles Record#000594 AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE THE CITY OF PORT ANGELES AND FCS GROUP, INC RELATING TO: PORT ANGELES UTILITY COST OF SERVICE STUDIES THIS AMENDMENT NO. 1 is made and entered into this Jtday of , 2014 by and between THE CITY OF PORT ANGELES, a non-charter code city of the State of Washington, (hereinafter called the "CITY") and FCS GROUP, INC , a Washington Corporation (hereinafter called the "CONSULTANT"). WHEREAS, the CITY entered in to an AGREEMENT with the CONSULTANT on the 7t" of May 2013, (the AGREEMENT) and WHEREAS, the CITY desires to amend the AGREEMENT to amend the Scope of Services, Budget, and Time of Performance. NOW, THEREFORE, in consideration of the representations and the terms, conditions, covenants and agreements set forth in this AMENDMENT, the original AGREEMENT is hereby amended as follows: I REVISED SCOPE OF SERVICES The amended scope of professional services to be performed and the results to be achieved by the CONSULTANT pursuant to the AGREEMENT shall be amended to read as shown in the attached Exhibit A to Amendment 1. The Scope of Services shall include all services and material necessary to accomplish the work. II MAXIMUM COMPENSATION The CONSULTANT'S total compensation and reimbursement are stated in the attached Exhibit A to Amendment 1. The maximum compensation amount, referenced in Section VI of the Agreement, is amended from $145,876 to $188,551 an increase of $42,675. The budget for any Task may be further adjusted by mutual agreement without an amendment to the Agreement, as long as the maximum compensation amount of$188,551 is not exceeded. III SIGNATURES Except as modified herein, the original Agreement and Exhibits A through D shall remain in effect. In WITNESS THEREOF, the parties hereto have executed this Amendment No. 1 to the Agreement as of the day and year first written above. Page 1 CONSULTANT CITY FCS GROUP, INC CITY OF PORT ANGELES CITY MANAGER TITLE: �° `� . ..� ..,._.. SIGNATURE DATE: 31 I ` SIGNATURE DATE: APPROVED AS TO FORM: BY: CITY ATTORNEY ATTEST: BY: C CLERK Page 2 ^ K`� '� � T7� � �_ �� j�^��J][ So\odons-01-1cnicd �ous1141111.4 EXHIBIT d ��TY �� T �� | �� `�. . . ��^ / ��^ / ~ ux��`/ RATE ADVISORY SERVICES Scope of Se[Y'Ce5 The following scope of services has been developed to meet the needs expressed during the February 13, 2014 telephone discussion with City Staff and the March 24` 2014 follow Lip telephone discussion with Gregg King. The services to be provided as pad of this Rate Advisory Services effort are described below: + ?uak l: Cost of service update � Update the 2013 cost of service analyses for water, sewer, collection, transfer station and electric utilities / For sewer, collection, transfer station and electricNdi,ies —thecooto[oervicenpdute will consist of updating costs for the 20l4budget. All other assumptions for classification and allocation will remain unchanged (does not include au update ofthe electric load anu\yoiu). • Provide u summary of cost of service changes compared to initial results • Update the transfer station debt with the latest information from the City's financial advisor. • Incorporate latest capital improvement program and update capital funding plan for each utility. / For the water utility cost of service, a more detailed analysis will be conducted on the monthly customer statistics to determine if study results, by customer class, are couiotuiuud. Update allocation fxotum with updated usage information. / The combined sewer overflow(CSO) rate shall evaluate different methods for cost allocation 1u customer classes. 4, Task 2: Rate Design � Update all utility rate proposals for 2015 and 2016 (across the board application) / The 2013 Sewer rates incorporated u l0-yeur cost of service pbuxo-in; the phase-in will require updating. / Does not include rate structure changes / Incorporate findings from the CSD evaluation into rates / Collection rates mbul\ separate the transfer station debt as a separate rate component. 4 Task 3: Fixed and Variable Cost Review � For each utility, provide u line item cost review to determine total fixed and variable costs. page / Firm Headquarters Locations nedmnodl��oCon|e/ | 425367.1802 7525 1WAveJwE'SoiteD'215 0eyon | 5038416543 nedmond,vvo�mng«z^p80Je A|cmko | 91"17.2*2D659 ' March 25' 20l4 City of Port Angeles Rate Advisory Services a Summarize key cost components/areas arid provide in numeric and graphic form. a Develop template in the existing model to facilitate this cost summary io the future. / Template will allow for a summary at different cost levels [e.g. l) summary oftotal operating costs, 2) broken down further by labor, chemicals, eto] 4 Task 4: Industrial Transmission Kate Review * Review and Update Basic Charge / Review existing charge documentation / [}cvo)op cost basis for updating basic charge—this will include line henu review of applicable costs. / Develop equitable o|locuhouofcoa|o —dbiunuuy/equirodiucuxoiononddbatufIncgordiuA time spent and level of effort ou certain tasks. / Calculate updated basic charge * Review [[Rate Schedule Regarding Change iu Service Level / Review rate schedule °~ Discussions with B9/\representative / Options for covering City related to credits and stranded costs, if applicable � Task 5: St000vvutczfioaooial Plan and Rate Forecast * Use 2Ol4 Budget uu baseline and prepare projected 20l5 -20l9expenses * Analyze current budget and project futoo:zeveuuenodcxpeooeo (O&M, tuzoo, debtourviuu and capital from rates) * Analyze capital facilities plan (2 scenarios: debt/cash split arid annual deprecation funding) and its impacts oo revenue requirements and City budget * Develop annual rate strategy (20)5 -2O|7) and alternatives * Perform nyto two rate strategy sensitivity analyses and alternatives * Update existing rates with the proposed adjustments * Compare proposed rates to existing schedules to ensure revenue sufficiency * Facilitate a review meeting togo over draft results '�� 8 �� ~�� o�~��u_ /& draft ofTask 1, 2 and 3 (cost of service analysis, rate design and fixed/variable cost review) is to be completed in sufficient time to incorporate edits and finalize for City to present to Council on or around April 28. All tasks shall he completed hy July 3l, 20|4. March 25, 2014 City of Port Angeles Rate Advisory Services BUDGET 6 k i f Task r, Hourly Billing Rates: Task 1 COSA Update 8 10 2 4 10 2 36 $5,840 Water Statistics Review/UpdateAlloc Factors - - - 4 18 - 22 2,910 CSO Cost Allocation Alternatives 2 - - 8 - - - 10 1,760 Task Rate Design 2 8 2 8 20 3,090 -Collection System Debt Surcharge 2 4 - - 6 1,100 Task 3 Fixed and Variable Cost Review 4 8 4 8 24 3,860 Task 4 Industrial Transmission Rate Review Review and Update Basic Charge 8 2 24 34 5,570 Additional Analysis Re:Service Level Changes 16 16 - - - 32 6,160 Task 5 Stormwater Financial Plan and Rate Forecast Data Collection and Validation - 1 3 2 6 690 Financial Forecast 4 10 28 - 42 6,030 Rate Strategy and Sensitivity Analysis 2 8 16 26 3,760 Rate Design 1 1 4 6 885 -One GoTOMeetingReview 2 2 2 - 6 1,020 Total Labor Expenses 51 70 2 22 24 97 4 270 $42,675 .i , -