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HomeMy WebLinkAbout000729 Original Contract City of Port Angeles Record #000729 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PORT ANGELES AND FCS GROUP, INC. RELATING TO: AFFORDABILITY INDEX THIS AGREEMENT is made and entered into this day of 44A)j 2014, by and between THE CITY OF PORT ANGELES, a non-charter cod'e'city of 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 an affordability comparison of Port Angeles to other cities using a set of specified criteria; 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 X11 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. Professional Services Agreement Page 1 of 7 Revised [04-01-2014) 11 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 B. 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 Exhibits C 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 C. Total shall not exceed amount specified in Exhibit B B. The CONSULTANT shall submit invoices to the CITY. 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. Professional Services Agreement Page 2 of 7 Revised [04-01-2014) 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$12,000. 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. Vill 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. Professional Services Agreement Page 3 of 7 Revised [04-01-20141 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. X11 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. X11 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. X11111 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 11 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 Professional Services Agreement Page 4 of 7 Revised [04-01-2014) the sole negligence of the CITY. 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: Professional Services Agreement Page 5 of 7 Revised [04-01-2014) 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 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. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 3. 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. 2. 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. Professional Services Agreement Page 6 of 7 Revised [04-01-2014) 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 — Schedule and Budget Exhibit C — FCS Group Fee Schedule for 2014 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: BYRON OLS N-'�HIEF FINANCIAL OFFICER WILLIAM E. BLOOR, CITY ATTORNEY FCS GROUP, INC. ATTEST: JA 4d4,;:met0j ANGIE SANCHEZ VIRNOCHE, PRINCIPAL JA SSA HURD, CITY CLERK Professional Services Agreement Page 7 of 7 Revised [04-01-2014) D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VI I. 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 Clallarn 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 —Schedule and Budget Exhibit C— FCS Group Fee Schedule for 2014 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: BYRON OLSON, CHIEF FINANCIAL OFFICER WILLIAM E. BLOOR, CITY ATTORNEY FCS GROUP, INC. ATTEST: ANGI 'SSANCHEZ VIRNOCHE, PRINCIPAL JANESSA HURD, CITY CLERK Professional Services Agreement Page 7 of 7 Revised [04-01-2014) March 26` 2Oz4 Affordability Analysis Assistance page A. Meet or conduct teleconference with City staff t0000fiuu comparable cities and to discuss key uounmpd000 (basket of indicators)tuhc assessed,Such oa the following: • Demographic/socioeconomic factors: population,households, family size, family income • County Assessor data and property tax rate uyunropdona (average mil rates) • Iloaideoiiul utility rates (power, water,sewer,landfill, C8O, ctnj • Local sales and use taxes • Housing costs (home value for owner occupied dwellings) • Other factors (c.8.'transportation costs) A. Consultant will analyze the^^pvimary" fiscal/tax, utility rate, local sales tax and housing costs related impacts on local bonuoowuom (households) io Port Angeles and nyto six other cities. The analysis will utilize consistent data sources and base years to identify and compare the key assumptions listed in Task 1,with itemized average annual costs (per household and per capita) pertaining to: • Residential utility rates (power,water, oowcr` landfill,C8O`etcj • Housing costs • Property taxes • Local sales and use taxes, and • Other costs (to huidon6fiod) • Total average annual costs per resident and per household • Three of the comparable cities toho used have been ideobfioday Shelton,Bremerton and Ellensburg—the additional three cities will hoiduudfied during the project inibaboo discussion. A. Consultant will summarize findings that compare key metrics used to compare the relative cost burdens to residents and relative affordability index in a draft Technical Memorandum report. Cuuuultuo1 will also participate in local work session with staff and/or city o[Goiulo to present draft findings and to answer questions. A. Consultant will prepare a revised Technical Memorandum Oualrcpm1tbutrempooduWkoy questions and issues idoodficdio Task]. Final report will provide uu independent study that describes ao overall affordability index and the relative affordability of key benchmarks, such uy taxes,utilities, housing and other factors for Port Angeles and upto six odico. 3 March 26, 2014 Affordability Analysis Assistance page 4 We propose to complete the work scope provided in this proposal within 3 months for a total not-to- exceed budget of$12,000. This proposed budget includes personnel time and direct expenses associated with making one trip to Port Angeles. This price proposal is good for 60 days. Budget assumes city will provide support regarding time review of input assumptions to complete the analysis, including utility rate structures, property tax rates, and related assumptions. All work incurred by FCS GROUP project team members will be billed on a basis of actual time charged to the project, using our current hourly billing rates(provided in Exhibit C). 4 March 2h' uoz4 Affordability Analysis Assistance page LABOR 1 POSITIONJITLE BILLING RATE Principal Standard Rate $220 Senior Project Muuagcr Standard Rate $195 Project Consultant Standard Rate $145 Senior Analyst Standard Rate $125 Analyst Standard Rate $115 Administrative and Technical Support Administrative Support $75 DIRECT EXPENSES Major direct expenses, such as travel, mileage, and lodging, will be charged at cost. Odbcz expenses will not be directly charged unless by mutual agreement of the client and FCS GROUP and specific terms will be established in advance prior to expenditure and billing. TECHNOLOGY CHARGE FC8 GROUP nburgcx u$5 per hour technology charge to cover overhead for IT systems, computers, communication devices and connectivity. ' Litigation rates are/5096o/slonduu/hourly ru/mr/br services/nxuppor/u/litigation, se///omen/ nego//udoxs, orb//oz//om unuYbrmm5o//ouprocesses. 5 March 26,2014 Byron Olsen City of Port Angeles 321 East Fifth Street Port Angeles,WA 98362 Subject: Affordability Index Analysis Dear Mr. Olsen, It is our understanding that the City of Port Angeles desires to obtain a more complete understanding of the relative household affordability of living in Port Angeles in comparison to other cities in the State of Washington. Understanding affordability is important for ascertaining the relative "ability to pay" for municipal services required by local residents. FCS GROUP, established in 1988, provides utility, economic, and management consulting services that include financial/cost-benefit/feasibility analysis to city and county governments, municipal corporations and ports, special purpose districts, and state agencies. Since the firm's inception, FCS GROUP has delivered high-quality, cost-effective consulting services in over 2,000 engagements and served more than 425 clients. Our staff serves clients throughout the western states and Canada from our offices in Redmond,Washington;Portland, Oregon; and Anchorage, Alaska. We provide a solutions-oriented analytical approach and produce a set of customized study results that can be easily implemented and understood by everyone. Angie Sanchez Virnoche will serve as the Principal-In-Charge on this assignment. Angie has worked on several rate studies in Port Angeles and elsewhere in Washington and Idaho. I will serve as the senior project manager, and will be supported by in-house staff, as needed. My background includes 28 years of providing fiscal impact assessment throughout the western U.S., including many municipal and port clients in Washington and Oregon. I have also written and spoken extensively on the subject of fiscal impact assessments, with work sponsored by the Association of Pacific Ports, National. League of Cities, Urban Land hlstitute, American Planning Association, and the National Growth and Infrastructure Consortium. _q e,, As we discussed the purpose of this analysis is to evaluate the relative affordability for a typical owner- occupied household in Port Angeles in comparison to up to six comparable cities in Washington.We have prepared a draft work scope as Exhibit A. If you desire additional assistance or our attendance at additional meetings, we would be pleased to provide additional related scope and budget materials. We are able to initiate this work immediately upon notice to proceed, and have assumed a 20% cost reduction given economics of scale of completing this work along with other ongoing rate work. We March 26, 2014 Affordability Analysis Assistance page 2 have prepared a work scope that can be completed within 1-3 months of notice to proceed, so that preliminary findings can be presented at your planned April 29 workshop. Please refer to Exhibit B for the schedule and budget estimates. All work incurred by FCS GROUP project team members will be billed on a basis of actual time charged to the project, using our current hourly billing rates(provided in Exhibit Q. Thank you for considering us for this assignment. We look forward to modifying the work scope, schedule and fee estimate to fully meet your requirements and expectations. Please give me a call at (503) 841-6543 or by email at toddc&)f"sy�ogp,com.to discuss any aspect of this proposal. You may also contact Angie at (425) 867-1802 (x230) or by email at an iq,.(a)f6gLQ ua lj. Ljj with questions or comments. Best regards, Todd Chase, AICP, LEED cc. Angie Sanchez Virnoche 2