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HomeMy WebLinkAbout5.709 Original Contract ~\ r \ ..' - \ .5.7D9 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE THE CITY OF PORT ANGELES AND HDR Engineering, Inc. RELATING TO: WaterlWastewater Utility Cost of Service Study THIS AGREEMENT is made and entered into this J~ day of ~ "it -' , 2 0115 , by and between THE CITY OF PORT ANGELES, a non-charter code ity of the State of Washington, (hereinafter called the "CITY") and HDR Engineering, Inc. , a Washington Corporation (hereinafter called the "CONSULTANT"). WHEREAS, the CITY desires to develop a revenue requirements and rate design for the water/wastewater utilitys, and WHEREAS, the CITY desires to engage the professional services and assistance of a qualified consulting firm to perform the scope of work as detailed in Exhibit A, and WHEREAS, the CONSULTANT represents that it is in full compliance with the statutes of the State of Washington for professional registration and/or other applicable requirements, and WHEREAS, the CONSULTANT represents that it has the background, experience, and ability to perform the required work in accordance with the standards of the profession, and WHEREAS, the CONSULTANT represents that it will provide qualified personnel and appropriate facilities necessary to accomplish the work; NOW, THEREFORE, in consideration of the above representations and the terms, conditions, covenants and agreements set forth below, the parties hereto agree as follows: SCOPE OF WORK The scope of professional services to be performed and the results to be achieved by the CONSULTANT shall be as detailed in the attached Exhibit A and shall include all services and material necessary to accomplish the work. The CITY may review the CONSULTANT'S work product, and if it is not satisfactory, the CONSULTANT shall make such changes as may be required by the CITY. Such changes shall not constitute "Extra Work" as related in Section XII of this Agreement. The CONSULTANT agrees that all services performed under this Agreement shall be in accordance with the standards of the profession and in compliance with applicable federal, state and local laws. The Scope of Work may be amended upon written approval of both parties. II OWNERSHIP OF DOCUMENTS Upon completion of the work, all documents, exhibits, photographic negatives, or other presentations of the work shall become the property of the CITY for use without restriction and PW 410_01 [ReVised 06/01/04] Page 1 of 6 . without representation as to suitability for reuse by any other party unless specifically verified or adapted by the CONSULTANT. However, any alteration or reuse of the documents, by the City or by others acting through or on behalf of the City, will be at the City's sole risk. III DESIGNATION OF REPRESENTATIVES Each party shall designate its representatives in writing. The CONSULTANT'S representative shall be subject to the approval of the CITY. IV TIME OF PERFORMANCE The CONSULTANT may begin work upon execution of this Agreement by both parties. The work shall be completed in accordance with the schedule set forth in the attached Exhibit D. V PAYMENT I The CITY shall pay the CONSULTANT as set forth in this section of the Agreement. Such payment shall be full compensation for work performed, services rendered, and all labor, materials, supplies, equipment and incidentals necessary to complete the work. A. Payment shall be on the basis of the CONSULTANT'S cost for actual labor, overhead and profit plus CONSULTANT'S direct non-salary reimbursable costs as set forth in the attached Exhibits Band C, respectively. 1. Labor costs shall be based on the hourly rates shown in Exhibit B. General clerical time shall be considered an overhead item, except where specific work items are involved that require one hour or more continued effort, in which case time will be charged on the basis of hours worked. 2. The direct non-salary reimbursable costs are those directly incurred in fulfilling the terms of this Agreement, including, but not limited to, travel, subsistence, telephone, CADD computer, reproduction and printing, supplies and fees of outside services and consultants. B. The CONSULTANT shall submit invoices to the CITY on a monthly basis. Invoices shall detail the work, hours, employee name, and hourly rate; shall itemize with receipts and invoices the non-salary direct costs; shall indicate the specific task or activity in the Scope of Work to which the costs are related; and shall indicate the cumulative total for each task. C. The CITY shall review the invoices and make payment for the percentage of the project that has been completed less the amounts previously paid. D. The CONSULTANT invoices are due and payable within 30 days of receipt. In the event of a disputed billing, only the disputed portion will be withheld from payment. E. Final payment for the balance due to the CONSULTANT will be made upon the completion of the work and acceptance by the CITY. F. Payment for "Extra Work" performed under Section XII of this Agreement shall be as agreed to by the parties in writing. PW 410_01 [ReVised 06/01/04] Page 2 of 6 ~ . VI MAXIMUM COMPENSATION Unless otherwise agreed to in writing by both parties, the CONSULTANT'S total compensation and reimbursement under this Agreement, including labor, direct non-salary reimbursable costs and outside services, shall not exceed the maximum sum of $1~OO. (Q:fl( S {q c..?>$. 0 0 I ; d 0 VII INDEPENDENT CONTRACTOR STATUS · ..._.~- ~ 4-~~~ The relation created by this Contract is that of employer-independent contractor. The Contractor is not an employee of the City and is not entitled to the benefits provided by the City to its employees. The Contractor, as an independent contractor, has the authority to control and direct the performance of the details of the services to be provided. The Contractor shall assume full responsibility for payment of all Federal, State, and local taxes or contributions imposed or required, including, but not limited to, unemployment insurance, Social Security, and income tax. VIII EMPLOYMENT Employees of the CONSULTANT, while engaged in the performance of any work or services under this Agreement, shall be considered employees of the CONSULTANT only and not of the CITY, and claims that may arise under the Workman's Compensation Act on behalf of said employees while so engaged, and any and all claims made by a third party as a consequence of any negligent act or omission on the part of the CONSULTANT'S employees while so engaged, on any of the work or services provided to be rendered herein, shall be the sole obligation and responsibility of the CONSULTANT. In performing this Agreement, the CONSULTANT shall not employ or contract with any CITY employee without the City's written consent. IX NONDISCRIMINATION The CONSULTANT shall conduct its business in a manner, which assures fair, equal and non-discriminatory treatment of all persons, without respect to race, creed or national origin, or other legally protected classification and, in particular: A. The CONSULTANT shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity/affirmative action requirements; and, B. The CONSULTANT shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran status, disabled veteran condition, physical or mental handicap, or national origin. X SUBCONTRACTS A. The CONSULTANT shall not sublet or assign any of the work covered by this Agreement without the written consent of the CITY. PW 410_01 [ReVised 06/01/04] Page 3 of 6 . B. In all solicitation either by competitive bidding or negotiation made by the CONSULTANT for work to be performed pursuant to a subcontract, including procurement of materials - and equipment, each potential subconsultant or supplier shall be notified by the CONSULTANT of Consultant's obligations under this Agreement, including the nondiscrimination requirements. XI CHANGES IN WORK Other than changes directed by the CITY as set forth in Section I above, either party may request changes in the scope of work. Such changes shall not become part of this Agreement unless and until mutually agreed upon and incorporated herein by written amendments to this Agreement executed by both parties. XII EXTRA WORK The CITY may desire to have the CONSULTANT perform work or render services in connection with this project, in addition to the Scope of Work set forth in Exhibit A and minor revisions to satisfactorily completed work. Such work shall be considered as "Extra Work" and shall be addressed in a written supplement to this Agreement. The CITY shall not be responsible for paying for such extra work unless and until the written supplement is executed by both parties. XIII TERMINATION OF AGREEMENT A. The CITY may terminate this Agreement at any time upon not less than ten (10) days written notice to the CONSULTANT. Written notice will be by certified mail sent to the consultant's designated representative at the address provided by the CONSULTANT. B. In the event this Agreement is terminated prior to the completion of the work, a final payment shall be made to the CONSULTANT, which, when added to any payments previou~ly made, shall compensate the CONSULTANT for the percentage of work completed. C. In the event this Agreement is terminated prior to completion of the work, documents that are the property of the CITY pursuant to Section II above, shall be delivered to and received by the CITY prior to transmittal of final payment to the CONSULTANT. XIV INDEMNIFICATION/HOLD HARMLESS The CONSULTANT agrees to indemnify the CITY from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of the CONSULTANT, CONSULTANT employees, affiliated corporations, officers, and subcontractors in connection with the work performed under this Agreement. The CITY agrees to indemnify the CONSULTANT from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of the CITY, CITY's employees, or agents in connection with the work performed under this Agreement. PW 410_01 [ReVised 06/01/04] Page 4 of 6 , If the negligence or willful misconduct of both CONSULTANT and CITY (or a person identified above for whom each is liable) is a cause of such damage or injury, the loss, cost, or expense shall be shared between the CONSULTANT and the CITY in proportion to their relative degrees of negligence or willful misconduct and the right of indemnity shall apply for such proportion. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the CONSULTANT and the CITY, its officers, officials, employees, and volunteers, the CONSULTANT'S liability hereunder shall be only to the extent of the CONSULTANT'S negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the CONSULTANT'S waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. However, the CONSULTANT expressly reserves its rights as a third person set forth in RCW 51.24.035. XV INSURANCE The CONSULTANT shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the CONSULTANT, its agents, representatives, employees or subcontractors. The CONSULTANT shall provide a Certificate of Insurance evidencing: 1. Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and, 2. Commercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and $2,000,000 aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations; broad form property damage; eXP~sion, collapse and underground (XCU) if applicable; and employer's liability; and, 6:rK.. 3/3/0) c.\ Q,\ \IV\. 3. Professional Liability insurance with limits no less than $1,000,000 limit per ac.Gt:H'feT1Ce. Any payment of deductible or self-insured retention shall be the sole responsibility of th~ ,.- CONSULTANT. t.{-~., ~ The CITY shall be named as an additional insured on the Commercial General Liability insurance policy, as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the CITY as additional insured shall be attached to the Certificate of Insurance. The CITY reserves the right to review a certified copy of all required insurance policies in the CONSULTANT's office. The CONSULTANT'S insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. The CONSULTANT'S insurance shall be primary insurance as respects the CITY, and the PW 410_01 [ReVised 06/01/04] Page 5 of 6 . CITY shall be given thirty (30) days prior written notice of any cancellation, suspension or material change in coverage. '- XVI APPLICABLE LAW This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington, and in the event of dispute the venue of any litigation brought hereunder shall be Clallam County. XVII EXHIBITS AND SIGNATURES This Agreement, including its exhibits, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following exhibits are hereby made a part of this Agreement: Exhibit A - Scope of Work Exhibit B - Consultant Labor Costs/Expenses Exhibit C - Schedule for the Work IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. ~~:OV~t YOR BILL BLOOR, CITY ATTORNEY CONSULTANT ~~J~~ TITLE:_VC-~ ~ Dn~.)\J~~ ATTEST: -60~"TA BECKY U N, ITY CL K - PW 410_01 [Revised 06/01/04] Page 6 of 6 February 6,2005 Mr. Scott McLain Deputy Director of Power Services City of Port Angeles 321 East Fifth Street P.O. Box 1150 Port Angeles, W A 98362-0217 Dear Mr. McLain: HDR Engineering, Inc. (HDR) is pleased to provide a proposal to the City of Port Angeles (City) to update the 2003-2005 water and wastewater revenue requirement and rate designs for the next three year period (2006-2008). The purpose of the update is to assure that the City's rate revenues are sufficient to meet the future financial obligations of the City, and that the water and wastewater rate designs are cost-based and equitable. We look forward to discussing our proposal with you. Thank you again for the opportunity to propose on this project. Sincerely, ~~ Angie Sanchez Vimoche Senior Financial Manager ASV:dlo 10900 NE 4th Street SUite 1110 Bellevue. WA 98004.5876 Phone (425) 452.8100 Fax (425) 454-4189 www hdnnc com Contents 1 Scope of Services 1.1 Introduction ......................................... .....................................................................1 1.2 Proposed Scope of Services........... ................. ............ ....................... ................ ......1 1.3 Summary ........................... .................. ........ ................ .......................... ................. ..4 2 Project Team 2.1 Project Team Organization......................................................................................5 2.2 Summary..................................................................................................................6 3 Proposed Time Schedule and Fees 3.1 Introduction.............................................................................................................. 7 3.2 Estimated Time Schedule ........................................................................................ 7 3.3 Billing Rates....................................................................................... ...................... 7 3.4 Estimated Project Fees............................................................................................. 7 l-D~ City of Port Angeles Water and Wastewater Rate Study Proposal 1.1 Introduction HDR Engineering, Inc. (HDR) proposes to provide an update to the current water and wastewater revenue requirement and rate designs for the City of Port Angeles. The update will provide the basis for establishing rates that will meet the financial obligations for each utility. This section of the proposal will provide a brief overview of the proposed approach to the services requested by the City. Our proposal is based upon our understanding of the City's goals and objectives for this project along with ensuring consistency with the past rate setting philosophy and methodology used by the City. 1.2 Proposed Scope of Services HDR has developed a proposed scope of services to meet the needs of the City. Provided below is a detail of the proposed tasks required to complete the water and wastewater rate study update. Task i-Data Collection HDR will provide a written data request detailing the data needed to complete the study. Data collection should be expedited due to the familiarity of the City's data by the project team. Task 2-Revenue Requirement Analysis The first step in developing equitable and cost-based rates for each utility is to develop the revenue requirements. The development of revenue requirements compares the various revenues of the utility with the expenses associated with each utility. A more detailed discussion of the general approach to be used for this analysis follows. STEP 1 - SELECTION OF A TEST PERIOD - The first step in developing the revenue requirements is the selection of a "test period". A "test period" refers to a time frame of reference for the accumulation of costs and consumption data. In the past, the City has reviewed a five-year time period with emphasis on a three year period for rate setting purposes. This approach will again be used unless otherwise directed. STEP 2 - METHOD OF ACCUMULATING COSTS - Once the "test period" has been determined, the next decision is to determine the basis or method of accumulating costs. There are two choices for accumulating costs for revenue requirement purposes: the "cash" basis or "utility/accrual" basis. Table 1-1 provides a simple comparison between these two methodologies. @~ City of Port Angeles Water and Wastewater Rate Study Proposal 1 Table 1-1 Cash vs. Utility Basis Comparison Utility/Accrual Basis -- ~---- - ~ ---. -- -- - ~- -- -- + ~--- + O&M Expense + Taxes + Annual Depreciation Expense Cash Basis + Return on Rate Base (Investment) Revenue Requirement + O&M Expense + Taxes or Transfer Payments + Capital Projects Financed with Rate Revenues (~Deprec. Exp.) + Debt Service (P+I) Revenue Requirement It is recommended that the City continue to use the cash basis methodology to maintain consistency with the City's past rate setting practices. STEP 3 - ACCUMULATION OF REVENUES AND EXPENSES - Once the test period and method of accumulating costs has been determined, HDR will develop the test period revenue requirements. The revenue requirements are composed of two major types of costs: operational and capital expenses. The operational costs are generally projected from historical or budgeted costs, using assumed escalation factors, and adjusted for any known changes in operations (e.g. increased treatment costs, additional personnel, etc.). While the projection of the operational costs is fairly straightforward, the capital cost projections are generally the focus of the analysis. The starting point for projecting capital costs (expenditures) will be the City's capital improvement plan (CIP) for each utility. In the financial planning process, consideration must be given to maximizing the capital improvements (expenditures) for the system, while minimizing rates to customers. This is accomplished through a review of available funding sources and determining the optimal mix of funding that achieve the planned capital projects at the least cost to the City and its customers. The final consideration of the revenue requirement analysis is prudent financial planning through review of key financial indicators. The typical financial indicators reviewed include adequate debt service coverage, minimum fund balance targets and properly funding capital at levels that ensure each utility maintains system integrity and has the ability to operate at desired service levels. STEP 4 - REVENUES AT PRESENT RATES - An important task of the revenue requirement is the independently calculation of the revenue at present rates, for each utility. This step of the project verifies the anticipated rate revenue for each utility along with ensuring consistent units (customer and usage) are developed and used throughout the cost of service and rate design tasks. STEP 5 - SUMMARY OF THE REVENUE REQUIREMENTS - The conclusion of this analysis is a summary of the revenue requirements. This summary will reflect proper levels of funding for O&M, debt service, capital needs and incorporate applicable financial planning criteria. The revenue requirement will determine the sufficiency of existing rates and highlight any need for a rate adjustment. If necessary, an implementation plan can be developed to "phase-in" rates over time should it appear that large adjustments are required. lil.\ City of Port Angeles Water and Wastewater Rate Study Proposal 2 Task 3-Rate Design Analysis A starting point for the rate design analysis is understanding the rate design goals and objectives of the City. These objectives may include ease of administration, revenue stability, efficient use, or others. Understanding the City's rate design objectives will assist in the development of any needed rate design alternatives. In designing rate alternatives, consideration must be given to two elements of the rate design process - level and structure. Level refers to the amount of revenue collected from a class of customer, whereas structure refers to the way in which it is collected. As a part of this task, the City's present water and wastewater rate designs will be reviewed to ensure that they conform to contemporary rate-setting goals and objectives. HDR will review the rate objectives of the City and provide up to two (2) water and wastewater rate alternatives that will meet those objectives. The City has specified the desire to review the sewer residential rate design. Specifically, the cut-off point for the lower rate (<430 cubic feet) of the residential class should be reviewed to ensure that the cut-off point is consistent with the City's current planning criteria and flow characteristics of the class or if the cut-off point should be changed. The project team will review additional water and wastewater rate structure issues with the City as the study progresses. For each rate option developed a bill comparison will be provided to demonstrate the impacts upon a customer's bill at various levels of consumption. In addition, the rate alternatives recommended will be checked to ensure adequate flow of funds to cover operating and capital costs identified within the financial plan. Task 4-Written Report Upon completion of the study, a draft written report of the study will be provided. The written report is intended to be comprehensive in nature and document all of the activities undertaken as a part of the project, along with the findings, conclusions and recommendations. A complete set of the technical analyses completed as part of the study will be provided. Five (5) copies of the draft final report will be provided to the City for their review and comment. Any comments, suggestions or corrections from the City concerning the draft final report will be incorporated into the final report. Fifteen (15) copies of the final report will be provided to the City. Task S-Project Meetings/Public Presentations The successful completion of a rate study relies on project meetings at key milestones of the project to review the results and assumptions of the deliverables before moving forward. Four (4) project meetings are anticipated between the City project team and the consultant project team. . Meeting 1 - Conference call to review the results of the revenue requirement. . Meeting 2 - Conference call to review edits/changes based on meeting 1 technical review. . Meeting 3 - Conference call to review the rate design alternatives. @~ City of Port Angeles Water and Wastewater Rate Study Proposal 3 . Meeting 4 - Conference call to review edits/changes to rate design alternatives presented during meeting 3. The project team meetings have been budgeted in the appropriate task in the fee proposal The City has requested the following public presentations: . One (1) meeting with the Utility Advisory Committee (UAC) - This meeting will present the results and findings of the rate study update for both utilities. Policy direction from the Committee will be requested. . One (1) meeting with the City Council - One (1) meeting to present the results and findings of the analysis. Any additional meetings requested beyond those specified above will be billed on time and materials. Task 6-Computer Models Provide a copy of all spreadsheet models developed as a part ofthis study. 1.3 Summary HDR has developed an approach for completing an update of the water and wastewater rate study. We are confident in our ability to provide a quality work product to the City and to work effectively and efficiently in ensuring the best interest of the City and its customers. J-i)~ City of Port Angeles Water and Wastewater Rate Study Proposal 4 2.1 Project Team Organization Presented below in Table 2-1 is a graphical overview of the organization of our project team. Angie Sanchez will be the Project Manager for this engagement. As Project Manager, she will be responsible for all aspects of the project, including quality control, project schedule and project coordination. I Table 2-1 I Overview of the Proposed Consultant Project Team Project Manager Angie Sanchez .. ... . Rate Analvsis and ModelinQ Task Leader: CiI Pierce Eric Christensen MeetinQs/Presentations Angie Sanchez CiI Pierce A more detailed discussion of the individual team member qualifications is provided below. Angie Sanchez, Project Manager - Overall project management will be provided by Angie Sanchez. As Project Manager, Angie will coordinate and manage the project team on a day-to-day basis. In addition, she will participate in all project meetings and public presentations. Angie was the project manager on the previous water and wastewater rate study for the City. She worked successfully with the City's UAC and City Council to adopt a three year rate implementation plan. Angie brings national recognition and expertise to the project. She was recently elected as a member of the National A WW A Rates and Charges Subcommittee and Standards Committee. As a part of her committee activities, she is currently authoring chapters for a small water system rate manual. eil Pierce, Senior Financial Analyst - Cil will perform the bulk of the analytical work for this project. Cil's lO-years of experience at the City of Renton utilities and involvement with the Washington State Finance Officers Association will benefit the City's project. Cil has lead the analytical effort on a number of similar rate studies including the Cities of Shelton, Stanwood, Hoquiam, Burlington, Marysville, Madison, Alabama and Passaic, New Jersey. Cil lil.'\ City of Port Angeles Water and Wastewater Rate Study Proposal 5 also has familiarity with the City staff and operations through her work on the solid waste rate analysis. Eric Christensen, Financial Analyst - Eric will assist in the development of the technical analyses and spreadsheet modeling for the City's study. Eric recently joined HDR. Prior to joining our firm he worked as an accountant/budget analyst for a medium sized municipal utility in Washington. Eric has strong accounting and spreadsheet skills and developed a number of cost/financial analyses relating to costs and the pricing of utility/city servIces. 2.2 Summary HDR is prepared to commence work on this project as soon as notice to proceed is given. Work schedules have been reviewed and it is determined that the project team members selected for this project will be available on a continuous basis until the project has been completed to the City's satisfaction. The above noted individuals will provide the bulk of the required efforts for this project. Should additional personnel be required for a specific issue, HDR has additional personnel that can address any financial, rate, resource or engineering issue that may arise. ill, City of Port Angeles Water and Wastewater Rate Study Proposal 6 Section 3 Proposed Time Schedule and Fees 3.1 Introduction This section of the proposal will provide a detailed discussion of our proposed time schedule and fee estimate for completing the comprehensive water and wastewater study. 3.2 Estimated Time Schedule A rate study of this complexity generally requires 20 to 30 weeks to complete, depending upon a number of factors. These factors include the amount of time required by the City to collect the necessary data, the quality of the data provided, the ability to schedule meetings with City's staff in a timely manner and, most importantly, receive policy direction from the City's management and/or UAC or City Council. The specific time schedule for this study may be negotiated and adjusted to meet the specific needs and time constraints of the City. 3.3 Billing Rates The following hourly billing rates will be utilized for the project. These hourly billing rates are used in the development of our project fee estimate. . Angie Sanchez . Cil Pierce . Eric Christensen . Clerical $ 148.00/hour $124.00/hour $84.00/hour $75.00/hour 3.4 Estimated Project Fees Based upon the above hourly billing rates, the following labor and expense estimates are provided for the City's study. I-i)~ City of Port Angeles Water and Wastewater Rate Study Proposal 7 Summary of the Water and Wastewater Rate Study Update Estimated Labor and Expenses Labor Fees: Task 1 - Data Collection Task 2 - Revenue Requirement Analysis Task 4 - Rate Design Analysis Task 5 - Written Report Task 6 - Project Meetings/Public Presentations (1 UAC, 1 Council) Task 7 - Computer Models Total Labor Fees Total Labor and Expenses $250 5,000 5,500 4,500 3,000 _ ()~ N/C 4->/ $18,25~ $1,685 ~~ /'1,&35. 05(\ ' \'? ~ () '? " Plus: Expenses (report/presentation copies, travel expenses, phone, fax) The above fee estimate is based upon the scope of services previously presented. HDR is willing to enter into a "fixed fee" contract based upon a final negotiated scope of services. Additional services requested by the City, that are not listed in the scope of services, will be provided at the hourly billing rates stated above. All portions of this proposal can be expanded or reduced as mutually agreed upon in writing by the City and HDR. The above quoted fees will remain in effect until December 31, 2005. 3.5 Summary HDR has provided a detailed discussion regarding the proposed fees for the City's project. If necessary, we are willing to negotiate the scope and schedule to attempt to work within the City's constraints. @~ City of Port Angeles Water and Wastewater Rate Study Proposal 8