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Home My WebLink About000594 Original ContractAGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PORT ANGELES AND FCS GROUP, INC. City of Port Angeles Record #000594 RELATING TO: UTILITY COST OF SERVICE STU DIES THIS AGREEMENT is made and entered into this il day of 2013, by and between THE CITY OF PORT ANGELES, a non charter code city df the State of Washington, (hereinafter called the "CITY and FCS Group, Inc., a Washington Corporation authorized to do business in the state of Washington (hereinafter called the "CONSULTANT WHEREAS, the CITY desires professional services related to cost of service studies for its electric, telecommunications, water, wastewater, solid waste collection, and solid waste transfer station utilities; 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: I SCOPE OF WORK The scope of professional services to be performed 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. PW 0410_01 Professional Services Agreement Page 1 of 7 Revised [05112/061 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 without representation as to suitability for reuse by any other party unless specifically verified or adapted by the CONSULTANT. However, any alteration 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 and the duration of the Agreement shall extend through April 30, 2015. The work shall be completed in accordance with the schedule set forth in the attached Exhibit C. 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 standard billing rates as set forth in Exhibit B multiplied by the actual hours worked, cost for actual labor, overhead and profit plus CONSULTANT'S direct non -salary reimbursable costs as set forth in the attached Exhibit B. B. The CONSULTANT shall submit invoices to the CITY per schedule in Exhibit B. 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 after 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 0410_01 Professional Services Agreement Page 2 of 7 Revised [05112/06] 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 $145,876. The budget for each task is as set forth in the attached Exhibit B. VII INDEPENDENT CONTRACTOR STATUS The relation created by this Agreement is that of owner- independent contractor. The CONSULTANT is not an employee of the City and is not entitled to the benefits provided by the City to its employees. The CONSULTANT, as an independent contractor, has the authority to control and direct the performance of the services. The CONSULTANT 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; arid, 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. PW 0410_01 Professional Services Agreement Page 3 of 7 Revised (05/12/06] 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. 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 CONSULTANT shall defend, indemnify and hold the CITY, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the negligent acts, errors or omissions of the CONSULTANT in performance of this Agreement, except for injuries and damages caused by the sole negligence of the CITY. PW 0410_01 Professional Services Agreement Page 4 of 7 Revised [05/12/06[ 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. 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, the CITY, and the officers, officials, employees, and volunteers of either, 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. No Limitation. CONSULTANT'S maintenance of insurance as required by the agreement shall not be construed to limit the liability of the CONSULTANT to the coverage provided by such insurance, or otherwise limit the CITY'S recourse to any remedy available at law or in equity. Failure on the part of the CONSULTANT to maintain the insurance as required shall constitute a material breach of contract, up which the City may, after giving five business days notice to the CONSULTANT to correct the breach, immediately terminate the Agreement, or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sum so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the CONSULTANT from the City. A. Minimum Scope of Insurance CONSULTANT shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute PW 0470_01 Professional Services Agreement Page 5 of 7 Revised [05/12/061 form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage; and, 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, and personal injury and advertising injury. The City shall be named as an insured under the CONSULTANT'S Commercial General Liability insurance policy with respect to the work performed for the City; and, 3. Workers' Compensation coverage as required by the Industrial Insurances laws of the State of Washington; and 4. Professional Liability insurance appropriate to the CONSULTANT'S profession. B. Minimum Amounts of Insurance CONSULTANT shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability, Professional Liability and Commercial General Liability insurance: 1. The CONSULTANT'S insurance coverage shall be primary insurance as respect the City. Any insurance, self- insurance, or insurance pool coverage maintained by the City shall be excess of the CONSULTANT'S insurance and shall not contribute with it. The CONSULTANT shall provide the City and any additional insureds with written notice of any policy cancellation, within two business days of their receipt of such notice. 3. Any payment of deductible or self- insured retention shall be the sole responsibility of the CONSULTANT. 4. 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. PW 0410_01 Professional Services Agreement Page 6 of 7 Revised [05/12/06] D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage CONSULTANT shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the CONSULTANT before commencement of the work. 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 Budget Costs for Each Task 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. CITY OF PORT ANGELES APPROVED AS TO FORM: DAN MCKEEN, CITY MANAGER FCS GROUP, INC. I -z�� ANGIE SANCHEZ VIRNOCHE, PRINCIPAL PW 0410_01 Professional Services Agreement Page 7 of 7 Revrsed [051121061 WILLIAM E. BLOOR, CITY ATTORNEY ATTEST: JA SA HURD, CITY CLERK City of Port Angeles Utility Cost of Service Studies EXHIBIT A SCOPE OF WORK The following scope of services has been agreed upon by the City or Port Angeles and FCS GROUP for the Utility Cost of Service Studies. The scope of services has been separated into tasks proposed to be completed in 2013 and tasks anticipated to be completed in 2014. SCOPE OF WORK TO BE COMPLETED IN 2013 ELECTRIC UTILITY 1. Revenue Requirement Use 2013 Budget as baseline and prepare projected 2014 2016 expenses Validate revenue test and customer use statistics Analyze and project customer class load (include new time of use. (TOU) customer classes) Create power cost projection Analyze current budget and project future revenue and expenses (O &M, taxes, debt service and capital from rates) Evaluate if facility replacement fund contributions should continue Analyze capital facilities plan (2 scenarios: debt /cash split and annual depreciation funding) and its impacts on revenue requirements and City budget Develop annual rate strategy (2014 -2016) and alternatives Perform up to two rate strategy sensitivity analyses and alternatives 2. Cost of Service Review functionalization, classification and allocation of City utility costs Recommend changes to power cost classification and allocation as appropriate 3. Rate Design Evaluate fixed and variable charges Create up to two alternative rate options Compare proposed rates to existing schedules to ensure revenue sufficiency. Update pole attachment fees TELECOMMUNICATIONS 1. Revenue Requirement Use 2014 Budget as baseline and prepare projected 2015 2017 expenses Evaluate ability to transfer funds to general fund City of Port Angeles Utility Cost of Service Studies a Evaluate sufficiency of funds to cover costs WATER UTILITY 1. Revenue Requirement Use 2013 Budget as baseline and prepare projected 2014 2016 expenses Validate revenue test and customer use statistics Analyze current budget and project future revenue and expenses (O &M, taxes, debt service and capital from rates) Evaluate adequacy of transfer from water treatment plant fund to offset operating costs Analyze capital facilities plan (2 scenarios: debt /cash split and annual depreciation funding) and its impacts on revenue requirements and City budget Develop annual rate strategy (2014 -2016) and alternatives Perform up to two rate strategy sensitivity analyses and alternatives 2. Cost of Service Review functionalization, classification and allocation of City utility costs Recommend changes to cost classification and allocation as appropriate Calculate fire cost liability 3. Rate Design Evaluate effectiveness of conservation rate structure through evaluation of customer use statistics completed in 2013 Evaluate fixed and variable charges Create up to two alternative rate options Compare proposed rates to existing schedules to ensure revenue sufficiency WASTEWATER UTILITY 1. Revenue Requirement Use 2013 Budget as baseline and prepare projected 2014 2016 expenses Develop CSO financing plan using 2013 budget as baseline and prepare projected 2014 -2016 expenses Validate revenue test and customer use statistics Analyze current budget and project future revenue and expenses (O &M, taxes, debt service and capital from rates) Analyze capital facilities plan (2 scenarios: debt /cash split and annual depreciation funding) and its impacts on revenue requirements and City budget Develop annual rate strategy (2014 -2016) and alternatives 2 City of Port Angeles Utility Cost of Service Studies Perform up to two rate strategy sensitivity analyses and alternatives (harbor clean -up liability) 2. Cost of Service Review functionalization, classification and allocation of City utility costs Recommend changes to cost classification and allocation as appropriate Review cost of service to septic haulers 3. Rate Design Evaluate fixed and variable charges Create up to two alternative rate option (commodity rate structure for WW and CSO) Create up to two alternative rate options Compare proposed rates to existing schedules to ensure revenue sufficiency SOLID WASTE (COLLECTION AND TRANSFER STATION) 1. Revenue Requirement Use 2013 Budget as baseline and prepare projected 2014 2016 expenses Validate revenue test and customer use statistics Review contracts and apply appropriate indices per contract Analyze current budget and project future revenue and expenses (O &M, taxes, debt service and capital /equipment) Evaluate adequacy of post closure maintenance fund Develop annual rate strategy (2014 -2016) and alternatives Perform up to two rate strategy sensitivity analyses and alternatives 2. Cost of Service Review functionalization, classification and allocation of City utility costs Recommend changes to cost classification and allocation as appropriate Evaluate cost of changes to minimum fee, rate waiver /reductions, allocation of costs to entities and self haulers, co- composting operations, impacts of change in pick -up frequency 3. Rate Design Create to two alternative rate options Compare proposed rates to existing schedules to ensure revenue sufficiency 3 City of Pod Angeles Utility Cost of Service Studies EXCISE TAX REVIEW Review the City's current methodology for calculating state excise taxes and how revenues are categorized for tax reporting purposes Review supporting tax worksheets to determine potential areas of overpayment and underpayment Review applicable legal references within the Revised Code of Washington (RCW) and Washington Administrative Code (WAC) 4 a.ec ,_,z,,„,,,, Task l' NY In J .dN I Ti*• I Dela Collection Task e l Revenue 3.OUnem•m 6.1 Load ndec l b, Cnal dnO 3t 0I0l lcs 02 -Power Cal Flyecllm Task C I Cost of Lrvlc• (new cu•am.r chines/Power cla.Olc.ton /allocation) Task0 I Nile Delon D1- Update Pcte At000hmenl Fees 9 A 9 A A 9 Total Beetle UMW SM 34130 a ',,f ly; Tort A l Data CoPeclIOn Task I I Rev.nu• R.eu0em•nt A ii, 4.761 TolallwcammunIcaj,nr 30 sllx FF t 3 5r Task I Dal Collodion Tooth I R.vnu• l•aueem.nt 01 -CuncrosSbolhlIca Vrnmuon legit C l Cwas.MC. 1.1001 kale 13.4031 A A A A 391t WC 5 WI t 37x Total MaM I■Wy 254 3]1.0 Task A 1 Duo Collection Task 01 R.v.nue ti.auir•m•nt Al Cvnomwsmellc4 Volmllm 02.CSOFinancalFlan task I Can W Ionic. Task D I mhs D.4an (o wnmadOy ml. 'plop/ A A 2 A SR. 19 ox I.IB 7.101 Ant Tonal WOSIenold Uemy 134 Vac lid Wel0e(Ce11.clan 4 botanyStolen) 4 4 y "rft l+,_ „'1 Toa, A l Oohs Collodion IeRM I l.v.nu• S•auhem•nl 61 Curlpnw 5104011's Vi datlm Task C I Can o15•Me. ro 01 tale D.•an 2 9 A O407 Milt Silt MMD 2064 regal Sand Wade many 133 531.400 TOTAL AN 744 5134.4113 a TH3NIIC.AL Iti y'a PresonloliMS 141-MaIw11Ow•hpmanl .Me&Ro Oroil end Fnal 4epwl 24 s4 S 37340 Told Rrcros Elements e3 4453e TOTAL 11301 ALI. 030 3130140 rTY.t.[(,_ -a. c,:E` -j Txrincio V 0.0,00 Travelrwol4ICnslte meetnosIrWOe andomvl u Wed Al Con 3 rot of Expenan 5774 m10n wpo3 Labor and Expense. 5139,716 OpNOna4 MMCn Cache Tax am ten I] ecbicnl,evlev. rsM1 56 164 10 male[ Lob.. and IA P•nr•1 $145,876 City of Port Angeles of Service Studies EXHIBIT B BUDGET BY TASK City of Port Angeles Utility Cost of Service Studies Section 8. (page 5 of 8) of the Request for Qualifications identified the key milestones and schedule for the study. City Council acceptance of agreement and notice to proceed Consultant submits draft spreadsheet models reports Consultant submits draft rate study presentation Consultant presentation to senior management Consultant presentation to Joint Solid Waste Advisory Board Consultant presentation to Utility Advisory Committee Consultant presentation to City Council EXHIBIT C SCHEDULE City Council considers proposed rate ordinance amendments Consultant delivers final reports and electronic files 6 April 16, 2013 August 23, 2013 September 6, 2013 September 20, 2013 To be determined October 8, 2013 October 15, 2013 November 5, 2013 November 30, 2013