HomeMy WebLinkAbout5.710 Original Contract
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AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE
THE CITY OF PORT ANGELES
AND
HDR Engineering, Inc.
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RELATING TO: Electric Utility Cost of Service Study
THIS AGREEMENT is made and entered into this I~ day of ~ ~J\. ~ ,
20aQ, by and between THE CITY OF PORT ANGELES, a non-charter co city 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 study (cost of
service) for the electric utility, 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
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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
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.
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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 $29,990.00.
VII INDEPENDENT CONTRACTOR STATUS
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.
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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
previously 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.
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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; eXPlosion, tI 0'>
collapse and underground (XCU) if applicable; and employer's liability; and, . <fjj7c. ~ ;
CI~\VV\
3. Professional Liability insurance with limits no less than $1,000,000 limit per o.ccl::JFlvllC'e.
Any payment of deductible or self-insured retention shall be the sole responsibility of th~ft\C:::::-
CONSULTANT. Ji-.!.a-- ~
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
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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.
CONSULTANT
ATTEST:
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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
conduct a comprehensive electric rate study. This letter proposal provides our understanding of the
services being requested by the City along with our estimated fees to conduct the study.
Our firm is highly qualified to perform this work for the City based upon our technical skills and
experience in this specialized area of expertise.
. The project manager assigned to the project successfully completed the last rate study for the City.
Our prior experience and familiarity with the City's current cost allocation methodology and rates
will be extremely valuable.
. The project team members have assisted numerous utilities in determining the impact to rates of the
Bonneville Power Administration wholesale power contract and cost recovery adjustment clauses.
HDR has developed financial plans to minimize impacts to customers.
. The project team members are actively involved in the Northwest Public Power Association
(NWPPA) and presented at the last two NWPPA C.R.A.R.T Conferences on the topic of electric
utility rates and unbundling.
It has been a pleasure assisting the City with its financial planning and rate setting needs. HDR looks
forward to discussing the current proposal with you. Should you have any questions about our approach
to this project or any information contained herein, please call me directly. Thank you again for the
opportunity to provide technical assistance to the City.
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
wwwhdnnc com
Contents
1 Project Scope of Services
1.1 Introduction................... ...........................................................................................1
1.2 Overview of a Comprehensive Rate Study..............................................................1
1.3 Detailed Scope of Services ................ .................................................................... ..2
1.4 Summary............................................... ..................................................... ............ ..5
2 Project Staffing
2.1 Introduction.............................................................................................................. 6
2.2 Project Management and Personnel........ ........................... ...... .................. ..............6
2.3 Summary .... ............................................. ............................................... ..................7
3 Billing Rates/Cost Proposal
3.1 Introduction.............................................................................................................. 8
3.2 Hourly Billing Rates ................................................................................................8
3.3 Summary........... .......................................................... .............. ...............................9
@~ City of Port Angeles Comprehensive Electric Rate Study Proposal
1.1 Introduction
HDR Engineering, Inc. (HDR) proposes to conduct a comprehensive electric rate study for the
City of Port Angeles (City). A comprehensive electric rate study provides the basis for
evaluating the City's financial requirements, while establishing electric rates that are equitable
and cost-based.
HDR has provided a detailed and comprehensive scope of services based upon discussions with
City staff regarding the electric utility rate study needs.
1.2 Overview of a Comprehensive Rate Study
A comprehensive rate study is generally comprised of three interrelated analyses: (1) the
development of revenue requirements to determine adequate funding levels, (2) a cost of service
study designed to understand the cost differences associated with serving various types of
customers, and (3) a rate design analysis that establishes a cost-basis for setting rates. Provided
below in Table 1-1 is a brief overview of the rate study process.
,
Table 1-1
Overview of the Rate Study Process
Revenue Requirement Analysis
Compares the revenue of the City to the
expenses to determine the overall
adjustment to rates
+
Cost of Service Analysis
Allocates the total revenue requirements
to the vanous customer classes of service
in a ''fair and equitable" manner.
~
Rate Design Analysis
Design rates to yield the revenue
requirements and meet the goals
and objectives of the City.
While Table 1-1 provides an overview ofthe typical components of a comprehensive electric rate
study, an important aspect of this study is incorporating and "tailoring" those analytical elements
into an overall scope of services that will provide the work products being requested by the City.
ID~ City of Port Angeles Comprehensive Electric Rate Study Proposal
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1.3 Detailed Scope of Services
The City has requested a scope of services based upon its current perceived needs, along with its
goals and objectives for this study. Provided below is a detailed discussion of our approach to
successfully completing a comprehensive electric rate study.
Task i-Initial Project Meeting
An initial project meeting is important to the overall success of this engagement since it will
bring the Consultant and the City's management team and staff together. Since the last rate study
completed was not a comprehensive study (no cost of service completed), it will be beneficial to
schedule an initial project meeting to discuss any specific issues the study should address and the
objectives the City would like for the study to accomplish. A half day meeting with key city
team members should be sufficient.
Task 2-Data Collection
An initial data request which details the data and information required to conduct the study will
begin the rate study process. This data and information should be for the most part readily
available information (e.g. financial, load, plant assets, statistical, customer, etc.). Given our
experience from the last study conducted for the City, HDR is aware of the areas of the study
where City specific data was either "insufficient" or "unavailable." Therefore, for this study, we
believe we can gather the data more efficiently, knowing those areas where data problems may
still exist.
Task 3-Revenue Requirement Analysis
The development of the revenue requirement analysis is the first major analytical portion of the
comprehensive rate study process. This portion of the study entails reviewing the revenue of the
utility and comparing them to the expenses of the utility. This task considers the prudent and
proper funding for O&M and capital expenditures and determines the need for any rate
adjustments over the time period selected. A more detailed discussion of the various steps
involved in developing the City's revenue requirements is provided below.
STEP 1 - SELECTION OF A TEST PERIOD - The first step in the development of the revenue
requirements is the selection of a "test period". For this study, a five year projected test period
will be reviewed (e.g. 2006 - 2010).
STEP 2 - METHOD OF ACCUMULATING COSTS - A cash basis revenue requirement will be utilized
to maintain consistency with the past rate setting methodology. A simply summary of the cash
basis approach is provided in Table 2-2.
@~ City of Port Angeles Comprehensive Electric Rate Study Proposal
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Table 2-2
Cash Basis Methodology
Cash Basis
+ O&M Expense
+ Taxes or Transfer Payments
+ Capital Projects Financed with
Rate Revenues (~Deprec. Exp.)
+ Debt Service (P+I)
Revenue Requirement
STEP 3 - ACCUMULATION OF REVENUES AND EXPENSES - 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. additional personnel, growth/expansion, etc.) A major
component of the O&M projection is the projection of power supply costs. The City purchases a
majority of its power supply from the Bonneville Power Administration (BP A). Similar to the
past rate-setting methodology, power supply costs will be projected on a monthly basis for each
year of the test period. A new approach added to the rate study process is to further segregate the
power costs into demand, energy and transmission related costs. The final power cost calculation
will identify the allocated power costs, by customer class, for each power supply component.
Projections for the capital costs (expenditures) will use the City's capital plan. The general
approach is to list the annual capital projects, and then determine the various outside funding
sources for each of the projects. These outside funding sources may be reserve funds, line
extension charges, etc. The balance of projects not funded by the available sources of funds must
be financed from a combination of long-term debt and rates.
Other financial planning criteria such as meeting the required debt service coverage ratio,
maintenance of adequate reserves (cash and rate stabilization) and funding the proper level of
annual capital projects will be reviewed.
The results of the revenue requirement will identify the 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.
Task 4-Cost.of Service Analysis
The next steps after the revenue requirements is to allocate the City's costs to the various
customer classes of service using the "generally accepted" cost of service methodology used in
the electric utility industry. A brief discussion of the major steps associated with the cost of
service is provided below.
@~ City of Port Angeles Comprehensive Electric Rate Study Proposal
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Step I-Functionalization of Plant in Service and Expenses. The functionalization of costs is
the first manipulation of costs within a cost of service study. Functionalization refers to the
arrangement of cost data into its basic cost categories. This is a critical step since the costs will
need to be functionalized to meet the level of detail required as an end product. This task is
simplified through the City's use of a uniform system of accounts.
Step 2-Classijication of Plant in Service and Expenses. The next step in the cost of service
process is to classifY these items to their various cost components. Traditionally, classification
involves determining whether each specific cost or account item was incurred to meet a
consumer's demand, energy, or customer related need. HDR will use its expertise and experience
conducting electric rate studies as a starting point for the cost of service analysis. These
classifications will be reviewed with the City for appropriateness.
Step 3-Review of Classes of Service. A determination will need to be made as to the classes of
service that will be used for cost allocation purposes. HDR will review the City's current rate
schedules and discuss with City management the need for any additional customer classes of
service. As a starting point, the study will review the same classes of service as used in the last
analysis (e.g. residential, general service, general service demand, municipal water pumping,
primary, non-profit tax deductible, industrial transmission - Daishowa, street lighting and yard
lighting). The final classes of service to review will be verified with the City.
Step 4-Development of Load Data and Allocation Factors. The development of load data and
the subsequent allocation factors is a critical step in the cost of service analysis. Within our
approach, we will develop load data on a monthly basis for each class of service or rate schedule
for a 12-month period. This level of detail allows for the development and review of alternative
cost allocation approaches. The load data information is used to develop customer class usage
characteristics that will assist in the equitable allocate of energy and demand costs. Therefore,
care will be taken in ensuring that the load data is properly developed and fairly reflects the usage
characteristics of each class of service.
Step 5-Summary Table and Average Unit Cost. An important aspect of any model is having
results and output which is in a format which is both easy to read and understand, yet at the same
time comprehensive and useful. Care will be taken to ensure that the summary table of the cost
of service and the development of average unit costs (cost based rates) is formatted such that the
City will be able to easily utilize the output during the rate design process.
Task 5- Rate Design Analysis
In designing the retail rate options for the City, the cost of service information will be utilized as
a starting point. While the City has not detailed any specific rate structures to be reviewed as a
part of this process, HDR will discuss with the City the current rate structures and whether
alternative rate structures should be reviewed as a part of this process. The industrial
transmission rates may be an area of emphasis that had previously not been reviewed in detail.
For each rate design developed, a bill comparison will be developed which shows a comparison
between the present bill and the proposed bill at various levels of usage. Bill comparisons are
useful in assessing the potential impacts to a wide variety of customers.
J-i):{ City of Port Angeles Comprehensive Electric Rate Study Proposal
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Task 6-Computer Model
The rate model developed for the electric utility will be provided to the City at the end of the
study. The model will be developed using the spreadsheet program of the City's choice (e.g.
Excel, Lotus, etc.).
Task 7-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. These meetings have been budgeted in the appropriate task of the fee budget.
. Meeting 1 - On-site meeting to review the results of the revenue requirement and cost of
service results.
. Meeting 2 - Conference call to review edits/changes based on meeting 1 technical review.
. Meeting 3 - Conference call to review the rate design alternatives
. Meeting 4 - Conference call to review edits/changes to the rate design alternatives based on
meeting 3.
The City has requested the following presentations:
. One (1) meeting with the Utility Advisory Committee (UAC) - This meeting will present the
results and findings of the rate study. 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 study.
Any additional meetings requested beyond those specified above will be billed on time and
materials.
Task a-Written Report
Upon completion of the rate study analysis, the City will receive five (5) draft reports of its
findings from the study. City staff will review the draft report and HDR will incorporate any
comments or suggestions from the City into the final report. Fifteen (15) copies of the final
written report will be provided to the City. The draft and final report will contain technical
exhibits of all the analyses undertaken as a part of this study.
1.4 Summary
This section of the proposal has provided a detailed discussion of our approach to complete a
comprehensive electric utility rate study. We have attempted to provide as much detail to our
approach as reasonably possible. The scope of services may be negotiated to meet the specific
needs of the City.
ill.\ City of Port Angeles Comprehensive Electric Rate Study Proposal
5
2.1 Introduction
A key factor to the success of any project is the experience and expertise of the project team. To
be successful in a rate study, the project team must successfully combine a number of people
with different backgrounds and abilities into a well-rounded, comprehensive team. We believe
that is the strength of our proposed project team for the City's study.
2.2 Project Management and Personnel
We have created a small, tightly managed work group for this project. This will provide for
more efficient communications between project team members.
Angie Sanchez Virnoche, Project Manager - Overall project management will be
provided by Angie. As project manager she will be responsible for all aspects of the project,
including project schedule and coordination as well as the management of the analytical portions
of the study. In addition, she will participate in all project meetings and public presentations.
Angie was the project manager on the last electric rate analysis completed for the City. She
worked successfully with the City's UAC and City Council to adopt the proposed rates outlined
in the financial plan.
Joe McGrath, Senior Financial Analyst - Joe will provide the maJonty of the
analytical work required of this project. Joe has worked in the public utility field for the past 30
years. During that time he has worked for both public and private utilities as both an employee
and consultant primarily in the areas of cost analysis and rates. Joe has recently joined the HDR
team. He was previously employed as a product manager for Snohomish County PUD. During
his employment at the PUD, he was a lead utility representative in settlement negotiations
associated with the Bonneville Power Administration's (BPA) FY06-07 Transmission Business
Line (TBL) rate case. He was also the group leader responsible for development of cost profiles
for all power resources considered for evaluation. The cost profiles were constructed for all
major power resource types as well as conceptual long term BP A contract products. During his
time at the PUD Joe was also actively involved as a conservation program analyst and chief
salmon recovery cost analyst.
Shawn Koorn, Financial Analyst - Shawn will assist in the computer modeling and
analytical efforts of the study. Shawn specializes in the area of financial planning, cost of service
and rates. He has a strong command of spreadsheet and database programs and has successfully
used a number of programs for graphics and presentations. Shawn has recently worked on a
number of complex rate studies, including electric rate studies for the cities of Clarksville and
Hope Arkansas, and the City of Richland, Washington.
I-il..\ City of Port Angeles Comprehensive Electric Rate Study Proposal
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2.3 Summary
This section of our proposal has provided an overview of the individuals that will manage and
conduct the study for the City. Each individual has also worked extensively with Boards,
management, utility staff and the public to ensure that the goals and objectives of the utility are
accomplished in a successful manner.
@~ City of Port Angeles Comprehensive Electric Rate Study Proposal
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Section 3
Billing Rates/Cost Proposal
3.1 Introduction
This section of the proposal will provide a detailed discussion of our proposed fee estiqIate for
completing the comprehensive electric rate study based upon our understanding of the City's
needs.
3.2 Hourly 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 estimates.
. Angie Sanchez
. Joe McGrath
. Shawn Koorn
. Clerical
$ 148.00/hour
$ 142.00/hour
$96.00/hour
$75.00/hour
Based upon the above hourly billing rates, the following labor fee estimates are provided to
complete the requested services.
Table 3-1
Summary of the Electric Rate Study Estimated Fees
Total
Labor:
Task 1:
Task 2:
Task 3:
Task 4:
Task 5:
Task 6:
Task 7:
Task 8:
Initial Project Meeting
Data Collection
Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Computer Model
Public Presentations (1 UAC, 1 CouncIl)
Written Report
Grand Total Labor
$1,300
265
6,000
8,700
3,000
N/A
3,100
5.100
$27,465
Expenses:
Plus: Expenses (report/presentation copies, travel expenses, phone, fax)
$2,525
GRAND TOTAL (Labor and Expenses)
$29.990
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
fi):{ City of Port Angeles Comprehensive Electric Rate Study Proposal
8
mutually agreed upon in writing by the City and HDR. The above quoted fees will remain in
effect until December 31, 2005.
3.3 Summary
HDR has provided a detailed discussion regarding the proposed fees for the City's project. HDR
is willing to negotiate the scope to attempt to work within the City's constraints.
@~ City of Port Angeles Comprehensive Electric Rate Study Proposal
9