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HomeMy WebLinkAbout5.515 Original Contract 5. 5/5 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE THE CITY OF PORT ANGELES AND ECONOMIC AND ENGINEERING SERVICES, INC. RELATING TO: Water/Wastewater Rate Study THIS AGREEMENT is made and entered into this ~ day of , 199!L, by and between THE CITY OF PORT ANGELES, a non-charter code city f the State of Washington, (hereinafter called the "CITY") and * Economic and Engineering Services, Inc., a Washington Corporation (hereinafter called the "CONSULTANT'). WHEREAS, the CITY desires to develop a revenue requirements and rate study for the WaterlWastewater 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 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 sha II make such changes as may be required by the CITY. Such changes shall not constitute "Extra Work" as related in Section XI of this Agreement. The CONSULTANT agrees that all services performed under this Agreement shall be in a ccordance 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 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 CONSULTANTS 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 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 cost for actual labor, overhead and profit plus CONSULTANT'S direct non-salary reimbursable costs as set forth in the attached Exhibit B. 1. Labor costs shall be based on the hourly rates shown in Exhibit B. Hourly rates shall be based upon an individual's hourly wage, times the total number 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, reproduction and printing, supplies and fees of outside services and consultants. B. The CONSULTANT shall submit invoices to the CITY no more frequently than 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 XI of this Agreement shall be as agreed to by the parties in writing. 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: Phase 1- $12,000.00 Phase 2- $24,200.00 (includes phase 1). VII 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. VIII 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, 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 or veterans's status, disabled veteran condition, physical or mental handicap, or national origin. IX 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. The CONSULTANT will be using the firms submitted with its proposal as subcontractors. Subcontractors other than those listed shall not be permitted without the written consent of the CITY. C. 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. X 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 wntten amendments to this Agreement executed by both parties. XI 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. XII 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 consultanfs 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. XIII lNDEMN1F1CA T10N/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 damag e 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 damag e 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 sha red 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. XIV 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, collapse and underground (XCU) if applicable; and employer's liability; and, 3. Professional Liability insurance with limits no less than $1,000,000 limit per occurrence. Any payment of deductible or self insured retention shall be the sole responsibility of the CONSULTANT. 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 CITY shall be given thirty (30) days prior written notice of any cancellation, suspension or material change in coverage. XV 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. XVI 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 Hourly Billing Rates Exhibit C -Schedule for the Work In WITNESS THEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY OF PORT ANGELES ~~A/"~_ MAY R CONS~ /!~ LJ/~ /21M,1b-t- TITLE I, r { '" . A TreST: . ~o~\e~ .ilftoA BECKY UP~ CLER " "- , , \ Exhibit A- Scope of Work Consultant shall perform work as outlined in Section 1 of its June 8, 1999 proposal to the City (copy attached). Project shall be divided into two separate phases, Phase 1- Revenue Requirements Study, and Phase 2- Cost of Service and Rate Design. Phase 2 of the project will be dependant on the outcome of phase 1. After completion of phase 1, the City will notify the consultant in writing if the City desires to complete phase 2 of the study. Phase 1 of the study will include the following tasks: Task 1: Initial Project Meeting. Task 2: Data Collection. Task 3: Review of Financial Policies. Task 4: Determine Revenue Requirements. Task 4a: Revenue Requirements Report (preliminary and final). Task 9: Computer models (revenue requirements). Phase 2 of the study will include the following tasks: Task 5: Cost of Service. Task 6: Rate Design Analysis. Task 7: Cost of Service and Rate Design reports. Task 8: Public presentations. Task 9: Computer models (Cost of Service, Rate Design).. All spreadsheets, reports, graphs, presentations, or other material that is prepared electronically by the consultant shall be provided to the City in electronic form along with hard copies of the material. " Section 1 Proposed Scope of Services 1.1 Introduction The City of Port Angeles (City) has requested technical assistance in performing a comprehensive water and sewer rate study. From a very general perspective, a comprehensive rate study reviews the adequacy of the existing rates for each utility along with the equity or "fairness" of the rates to the City's customers. A comprehensive analysis is performed for each utility using a "generally accepted" methodology . Economic and Engineering Services, Inc. (EES) has worked extensively with the City in the past on their water and sewer rates. This study is an update of the comprehensive reviews that EES has conducted for the City in the past. 1.2 Overview of the Study A comprehensive rate study is composed of three separate, but interrelated analyses. These are a revenue requirement analysis, cost of service analysis and a rate design analysis. A revenue requirement analysis reviews the various revenues and expenses of each utility to determine the overall level of rate adjustment needed. Next, the cost of service takes the revenue requirements and "fairly" allocates them to the various customer classes of service (e.g. residential, commercial, etc.). Finally, a rate design analysis takes the targeted level of revenue to collect from each class of service and develops a rate to collect the fixed and variable charges in an equitable manner, while considering any other policy issues the City may have (e.g. conservation, etc.). 1.3 Goals and Objectives for the Study Determining the City's goals and objectives for the study is an important starting point. By determining the City's goals and objectives for this study, a scope of services can be tailored to meet those needs. We believe, given our experience in past rate studies for the City that, at a minimum, the following goals and objectives should be established for this study. . Review the City's current costs and develop revenue requirements to meet the City's operational and capital needs, for each system, for a 5-year planning period. . Review and incorporate the City's future capital requirements into the financial plans developed, such that the results have the least impact on the City's Proposed Scope of Services 1-1 customers. . Review key financial indicators such as fund reserve levels, debt servIce coverage ratios, as well as any additional covenant requirements. . Review the cost allocations of the City to assure that the City's rates are perceived as "fair and equitable" by the City and its customers . Review the City's current rate designs/structures and provide, as appropriate, alternative rate designs that are contemporary, cost based and defensible. . Provide an effective written and oral presentation of the results of this study. . Have the consultant and the City work closely together as a team and maximize the value of this study to the City. The above list is our perception of the City's goals and objectives at this time. As the project unfolds, the City can expand upon this list to assist us in better understanding your needs. Given these goals and objectives, a scope of services has been developed to meet the City's needs. 1.4 Detailed Description of Proposed Services EES attempted to develop a detailed scope of services that meets the specific needs of the City. It should be noted that each utility will be financially analyzed on a "stand-alone" basis, and that our rate study approach assumes that the rate studies will be conducted simultaneously. Furthermore, it should also be understood, that the description for each task provided below will be conducted for each utility using the approach specified, unless noted differently. Task 1-lnitial Project Meeting Task Objective: Bring the Consultant and City staff together, at the start of the project, to assure that both parties have a mutual understanding of the goals, objectives, issues and concerns related to the study. An initial project meeting is important to the overall success of study since it forms the foundation for the rate study process. This meeting will allow both parties to discuss the overall goals and objectives for this study, while at the same time discussing any issues and concerns that either party may have. The project time schedule will also be discussed during this meeting. It is proposed that the initial project meeting be a half-day meeting. Work Product Deliverables as a Result of Task I-Initial Project Meeting. From the work accomplished above, the deliverables for this task will be as follows: . An understanding of the study's goals, objectives, issues and concerns by both parties. . Face-to-face meeting to get the study off to a positive start. Proposed Scope of Services 1-2 Task 2-Data Collection Task Objective: Accumulate the necessary data to conduct the water and sewer rate study. EES will develop an initial written data request, for the City, that details the data and information required to conduct the study. The list of data items will be separated by system. As with past rate studies, this data and information should be, for the most part, readily available information (e.g. financial, statistical, customer, etc.). ._J Work Product Deliverables as a Result of Task 2-Data Collection. From the work accomplished above, the deliverables for this task will be as follows: . An initial written data request to the City. . Identification of any data constraints. Task 3-Review of Financial Policies Task Objective: Determine the extent of any financial/rate setting policies in use by the City and recommend additional policies, as appropriate. EES will review the existing financial/rate policies of the City to assure conformance with the current policies or practices. This review will also include a review of all current rate covenants associated with existing (outstanding) revenues bonds. At the same time, EES will propose, as appropriate, additional financial/rate policies for possible adoption by the City. This information will be presented to the City Council for discussion and review. In the end, the City may adopt these policies as guiding principles, or as actual written policies. Work Product Deliverables as a Result of Task 3--Review of Financial Policies. From the work accomplished above, the deliverables for this task will be as follows: . Review of the existing financial/rate setting policies of the City. . Develop, as appropriate and necessary, additional policies to help provide financial stability to the City and aid in simplifying the rate setting process over the long-term. . If appropriate, meet with the City Council to review and discuss policies. Task 4-Determine Revenue Requirements Task Objective: Develop revenue requirements for a projected five year period, for each system, while assuring adequate funds for operating and Proposed Scope of Services 1-3 capital needs. Revenue requirements are the first step of the comprehensive rate study process. This portion of the study entails reviewing the various sources of funds (revenues) and compares them to the applications of funds (expenses) for the utility. This review is completed, for each utility, on a "stand-alone" basis, and determines if the revenue levels are adequate to meet the operating and capital needs of each system. 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". A "test period" refers to a time frame of reference for the accumulation of costs and consumption data. For this study, we would propose revenue requirements be developed for the five year test period of 2000 - 2004. 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" or "utility/accrual" basis. Table 1-1 provides a simple comparison between these two methodologies. Table 1-1 Cash vs. Utility Basis Comparison Utility/Accrual Basis + O&M Expense + Taxes + Annual Depreciation Expense + Return on Rate Base (Investment) = Revenue Requirement Cash Basis + O&M Expense + Taxes or Transfer Payments + Capital Projects Financed with Rate Revenues (~Deprec. Exp.) + Debt Service (P+D = Revenue Requirement Historically, the City has utilized the "cash" basis approach to establish their revenue requirements. STEP 3 - ACCUMULATION OF REVENUES AND EXPENSES - Once the test period and method of accumulating costs has been determined, EES, in conjunction with City staff, 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, Proposed Scope of Seru~ces 1-4 and adjusted for any known changes in operations (e.g. additional personnel, etc.) The typical starting point for projecting capital costs (expenditures) is the system capital facilities plan or master plan. Table 1-2 provides an overview of the general approach that will be used to develop a capital expenditure plan for the revenue requirement analysis. Table 1-2 Overview of the General Methodology For Reviewing the Financing of Capital Project Expenditures + Total Capital Projects - ./ Renewal and Replacement Capital Projects ./ Legally Mandated Capital Projects ./ System Growth and Expansion Capital Projects _ Outside Funding Sources - ./ Capital Reserves ./ Grants ./ Low-Interest Loans (State and/or Federal) ./ General Facility Charges ./ Borrowed FundslLong Term Debt (e.g. Revenue Bond) = Capital Projects Financed With Rate Revenues (~ Depree. Exp.) The basic framework shown above is developed on a year-by-year basis for each of the projected years of the revenue requirement analysis. In summary form, the general approach is to list all capital projects in each year, and then determine the various outside funding sources for each of the projects. These outside funding sources may be low-interest loans, grants, customer capital contributions, 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. It is the balancing of the use of long-term debt to the impact upon rates, which is critical to the analysis. Given a better understanding of the overall magnitude of the needed capital projects, a financing plan can be developed to minimize rates and costs over time. Overall, EES will attempt to minimize rates, while at the same time maximizing the funds available for capital projects. STEP 4 _ SUMMARY OF THE REVENUE REQUIREMENTS - At the end of this process, a summary of the revenue requirements for each utility will be developed. This summary will reflect proper levels of funding for O&M activities, capital expenditure needs and incorporate necessary financial planning criteria. At this point, a determination and recommendation can be provided regarding the required changes in rate revenue levels for each Proposed Scope of Services 1-5 system. If necessary, a plan can be developed to "phase-in" rates over time should it appear that large adjustments are required. Work Product Deliverables as a Result of Task 4-Development of the Revenue Requirements. From the work accomplished above, the deliverables for this task will be as follows: . A projected five-year financial plan, for each utility, that considers the necessary operating and capital needs of each system. . A capital expenditure plan, to incorporate into the financial plans, which attempts to minimize the impacts to customers over time. . Recommended rate adjustments, for each utility, during the planning period. Task 5-Cost of Service Task Objective: Develop an average embedded cost of service study for the water and sewer utilities. Given the results of the revenue requirements, the City's water and sewer costs will be allocated to the various customer classes of service using an average embedded cost of service methodology. In simplified terms, a cost of service study attempts to allocate the revenue requirements for the utility between the various customer classes of service (e.g. residential, commercial, etc.). A brief discussion of the major steps associated with the cost of service is provided below. STEP 1 - SELECTION OF TEST PERIOD The first step of the cost of service is to select a time period for the allocation of costs. This is similar to the time period selection used for the revenue requirement analysis. In the City's case, allocating the CY 2000 revenue requirements for cost of service purposes would appear to be appropriate. STEP 2 - FUNCTIONALIZATION AND CLASSIFICATION OF EXPENSES The next step in the cost of service process is to functionalize the data. Functionalization refers to the arrangement of cost data into its basic cost categories (e.g. source of supply, treatment, transmission, distribution, etc.). This task is simplified greatly through the City's use of a uniform system of accounts. Given functionalized costs, the costs are then classified to their various cost components. For the water utility, classification involves determining whether each specific cost or account item was incurred to meet a consumer's capacity, commodity, fire protection or customer related needs. For the sewer utility, the basic classification components are volume related, strength (BOD's and suspended solids) related, and customer related. EES will utilize the same classification methodology that was utilized in past Proposed Scope of Services 1-6 studies, while updating it for any known changes. Step 3 - Allocation of Expenses The final analytical process involved in the cost of service studies is the allocation of the classified rate base and expenses to each of the customer classes of service. In developing the allocation factors, EES will develop factors that are "fair and equitable", to all customers, and which rely upon City specific data whenever possible. STEP 4 - SUMMARY OF THE COST OF SERVICE Given the development of all the allocation factors, the final task is to allocate the rate base and expenses to each class of service. From this process, a summary page of the cost of service study is provided. The summary page for each study compares the difference between the current level of rate revenues received from each class of service, and the allocated cost of service for each class. The cost of service will also provide average unit costs, or cost-based rates, which will serve as a guideline in the development of final rate designs. In summary, the development of average unit costs will provide "cost of service" based rates for all classes of service, for each utility. Work Product Deliverables as a Result of Task 5-Cost of Service. From the work accomplished above, the deliverables for this task will be as follows: . A "fair and equitable" allocation of costs to the various classes of service for the water and sewer systems of the City. . A summary of the average unit costs (cost based rates) by customer class for each system. Task 6-Rate Design Analysis Task Objective: To utilize the cost information developed as a part of the previous tasks and develop rate design options for each utility, for possible adoption by the City Council. In designing the rate options for the water and sewer systems, the cost of service information and average unit cost information will be used as a starting point. As a part of this task, each of the City's present rate designs will be reviewed to ensure that it conforms to the current contemporary rate- setting goals and objectives. Depending upon the findings and conclusions of the revenue requirement and cost of service study, multiple rate design options may be developed. An important aspect of rate design is determining whether to "phase-in" Proposed Scope of Services 1-7 necessary adjustments overall or between classes of service. For each rate design developed, a bill comparison will be provided that shows the present bill, proposed bill, dollar change and percentage change, for various levels of consumption. This type of information is useful to better understand which customers are most impacted by changes in rate levels and structures. Work Product Deliverables as a Result of Task 6-Rate Design Analysis. From the work accomplished above, the deliverables for this task will be as follows: . Review of current water and sewer rates and development of various rate design options . Bill comparisons for each rate design developed. Task 7-Workpapers and Report Documentation Task Objective: Provide a well-written report to summarize the findings, conclusions and recommendations of the study. In addition, provide a copy of all workpapers associated with the project for purposes of documentation. Upon completion of the water and sewer rate study, the City will receive five (5) draft reports of our findings. Any comments, suggestions or corrections from the City will be incorporated into the final report. Fifteen (15) copies of the final report will be provided to the City. Additionally, complete documentation of all workpapers used in the preparation of the utility rate study will be provided to the City. Work Product Deliverables as a Result of Task 7-Workpapers and Report Documentation. From the work accomplished above, the deliverables for this task will be as follows: . A draft and final written report . A copy of all workpapers used in the preparation of the study Task a-public Presentations Task Objective: Provide effective public presentations of the findings, results and recommendations of the utility rate study. The overall quality and value of a rate study is often measured by the quality of the public presentation process. For this study, we have planned on three presentations. They are as follows: . Review of Revenue Requirements/Cost of Service Proposed Scope of Servtces 1-8 . Review Rate Design Options . Public Hearing on Proposed Rates It is assumed that the first two meetings will be at a committee level, and the final public hearing is a City Council meeting. Work Product Deliverables as a Result of Task 8-Public Presentations, Educational Services. From the work accomplished above, the deliverables for this task will be as follows: . Three (3) public meetings with the City to discuss the findings, results and recommendations of the study. . Scheduled meetings, as necessary, with City project staff to review the issue, progress, findings and results of the study. - i Task 9-Computer Models Task Objective: Provide a "user friendly" spreadsheet model for future use by the City. The study will be developed and updated on an IBM compatible microcomputer, using the spreadsheet program of the City's choice (e.g. Microsoft Excel, Lotus, etc.). The spreadsheet models will be specifically designed for the City's system of accounts and needs. At the end of this engagement, the City will receive the various data disks associated with this project. Work Product Deliverables as a Result of Task 9-Computer Models. From the work accomplished above, the deliverables for this task will be as follows: . A copy of all spreadsheet models developed as a part of this study 1.5 Summary This section of the proposal has provided a detailed discussion of our approach and methodology in meeting the City's water and sewer rate study needs. We have attempted to provide as much detail to our approach as reasonably possible. Our rate study approach can be revised to meet the specific needs of the City, as needed. We are confident of our ability to provide a quality work product to the City, and to work effectively and in the best interests of its customers. Proposed Scope of Services 1-9 Exhibit B- Consultant Hourly Billing Rates The following billing rates will be used for the scope of work for this agreement: Principa1/President/Sr. V.P. PrincipalN.P.lSr. Associate II Sr. Associate III Sr. Associate II Sr. Associate I Associate III Associate II Associate I Analyst V Analyst IV Analyst III Analyst II Analyst I Engineer V Engineer IV Engineer III Engineer II Engineer I Word Processor III Word Processor II Word Processor I $128.001hr $ 128.001hr $112.001hr $107.001hr $ 92.001hr $ 97.001hr $ 92.001hr $ 87.001hr $ 87.001hr $ 82.001hr $ 72.001hr $ 67.001hr $ 62.001hr $ 87.001hr $ 82.001hr $ 77.001hr $ 72.001hr $ 62.001hr $ 47.001hr $ 42.001hr $ 37.001hr Exhibit C - Schedule for the Work Initial Project Meeting Data Collection Review of Financial Policies Determine Revenue Requirements Preliminary Revenue Requirements Report Final Revenue Requirements Report Decide Go/NoGo on Phase 2 Development of cas Rate Design Final Report on cas and Rate Design Presentation to UAC Presentation for Council Approval July 30, 1999 Aug 2 - Aug 13 Aug 9 - Aug 20 Aug 2 - Sept. 3 Aug 30 Sept. 3 Sept. 1 Sept. 1 - Sept 24 Sept. 27 - Oct 1 Oct. 5 Oct 11 Oct 19