HomeMy WebLinkAboutFCS Group - Irrigation Utility Rate Study and Connection Charge Update PSA (#22-030)PROFESSIONAL SERVICES AGREEMENT
Irrigation Utility Rate Study and Connection Charge Update
Agreement No. 22-030
THIS AGREEMENT is made and entered into between the City of Pasco, a Washington
Municipal Corporation, h.e�;r �'n�after referred to as "City", and FCS Group, hereinafter referred to
as "Consultant," on the . I ' " day of Nr) 4KiPi✓ , 2022.
RECITALS
WHEREAS, the City desires to have certain services and/or tasks performed as set forth
below requiring specialized skills, training, equipment, and other supportive capabilities; and
WHEREAS, the Consultant represents that it is qualified and possesses sufficient skills,
experience, equipment, and necessary capabilities, including: technical and professional expertise,
when required, to perform the services and/or tasks as set forth in this Agreement upon which the
City is relying.
WHEREAS, the City has, consistent with RCW 39.80, published an announcement related
to its need for Architectural and Engineering services, evaluated Consultant's current performance
data, and has determined that Consultant is the most highly qualified firm to perform the
Architectural and Engineering services related to the NW System Irrigation Upgrade project; and
WHEREAS, the City's Public Works Director finds that the Agreement with Consultant
is both fair and reasonable in light of the duties to be performed, the Consultant's performance
data, and the nature and complexity of the project.
NOW, THEREFORE, in consideration of the mutual covenants, and performances
contained herein, the parties agree as follows:
1. Scope of Services. The Consultant shall perform such services and accomplish such tasks,
including the furnishing of all labor, materials, facilities and equipment necessary for full
performance thereof, as identified and designated as Consultant's Responsibilities
throughout this Agreement, and as more particularly described in Scope of Work detailed
in Exhibit A, attached hereto and incorporated herein (the "Project").
2. Term. This Project shall begin on the execution date listed above and promptly be
completed by 12/31/2024.
3. Compensation and Pavment.
3.1 Payment for services provided hereunder shall be made following the performance
of such services. Such payment shall be full compensation for work performed or
services rendered, and for all labor, materials, supplies, equipment, and incidentals
necessary to complete the Project.
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 1 of 9
3.2 No payment shall be made for any services rendered by the Consultant except for
services identified and set forth in this Agreement except as may be authorized by
a written supplemental agreement approved by the City.
3.3 The City shall pay the Consultant for work performed under this Agreement upon
timely submitted invoices detailing work performed and expenses for which
reimbursement is sought. The City shall approve all invoices before payment is
issued. Payment shall occur within thirty (30) days of receipt and approval of an
invoice.
3.4 The City shall pay the Consultant for all work performed and expenses incurred
under this Agreement, as follows.
® Hourly (Multiple Rate): Such rates as identified on Exhibit A, plus actual
expenses incurred as provided under this Agreement, but not to exceed a
total of $34.270.00 without the prior written authorization by the City.
4. Reports and Insl2ections.
4.1 The Consultant at such times and in such forms as the City may require, shall
furnish to the City such statements, records, studies, surveys, reports, data, and
information as the City may request pertaining to matters covered by this
Agreement.
4.2 The Consultant shall, at any time during normal business hours and as often as the
City or the Washington State Auditor may reasonably deem necessary, make
available for examination all of its records and data with respect to all matters
covered, directly or indirectly, by this Agreement and shall permit the City, or its
designated authorized representative to audit and inspect other data relating to all
matters covered by this Agreement. The City shall receive a copy of all audit
reports made by the agency or firm as to the Consultant's activities. The City may,
at its discretion, conduct an audit at its expense, using its own or outside auditors,
of the Consultant's activities which relate, directly or indirectly, to this Agreement.
Consultant shall be provided a copy of such reports.
4.3 The Consultant, during the term of this Agreement, shall obtain all permits and
registration documents necessary for the performance of its work and for the
execution of services at its own expense, and shall maintain its validity. Upon
request, the Consultant shall deliver to the City copies of these licenses, registration
documents, and permits or proof of their issuance or renewal.
4.4 Consultant shall maintain books, records and documents, which sufficiently and
properly reflect all direct and indirect costs related to the performance of this
Agreement, and shall maintain such accounting procedures and practices as may be
necessary to assure proper accounting of all funds paid pursuant to this Agreement.
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 2 of 9
These records shall be subject, at all reasonable times, to inspection, review, or
audit as provided above.
4.5 The Consultant shall retain all books, records, documents or other material relevant
to this Agreement for three (3) years after its expiration. Consultant agrees that the
City, or its designee, shall have full access and right to examine any of said
materials at all reasonable times during this period.
5. Ownership and Use of Documents.
5.1 All research, tests, surveys, preliminary data, information, drawings and documents
made, collected, or prepared by the Consultant for performing the services subject
to this Agreement, as well as any final product, collectively referred to as "work
product," shall be deemed as the exclusive property of the City, including copyright
as secured thereon. Consultant may not use them except in connection with the
performance of the services under this Agreement or with the prior written consent
of the City. Any prior copyrighted materials owned by the Consultant and utilized
in the performance of the services under this Agreement, or embedded in with the
materials, products and services provided thereunder, shall remain the property of
the Consultant subject to a license granted to the City for their continued use of the
products and services provided under this Agreement. Any work product used by
the Consultant in the performance of these services which it deems as
"confidential," "proprietary," or a "trade secret" shall be conspicuously designated
as such.
5.2 In the event of Consultant's default, or in the event that this Agreement is
terminated prior to its completion, the work product of the Consultant, along with
a summary of the services performed to date of default or termination, shall become
the property of the City, and tender of the work product and summary shall be a
prerequisite to final payment under this Agreement. The summary of services
provided shall be prepared at no additional cost, if the Agreement is terminated
through default by the Consultant. If the Agreement is terminated through
convenience by the City, the City agrees to pay Consultant for the preparation of
the summary of services provided.
6. Public Records.
6.1 Consultant acknowledges that the City is an agency subject to Chapter 42.56 RCW
"Public Records Act." All preliminary drafts or notes prepared or gathered by the
Consultant, and recommendations of the Consultant are exempt prior to the
acceptance by the City or public citation by the City in connection with City action.
6.2 If the Consultant becomes a custodian of public records of the City and request for
such records is received by the City, the Consultant shall respond to the request by
the City for such records within five (5) business days by either providing the
records, or by identifying in writing the additional time necessary to provide the
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 3 of 9
records with a description of the reasons why additional time is needed. Such
additional time shall not exceed twenty (20) business days unless extraordinary
good cause is shown.
6.3 In the event the City receives a public records request for protected work product
of the Consultant within its possession, the City shall, prior to the release of any
protected work product or as a result of a public records request or subpoena,
provide Consultant at least ten (10) business days prior written notice of the pending
release and to reasonably cooperate with any legal action which may be initiated
by the Consultant to enjoin or otherwise prevent such release.
7. Independent Contractor Relationship.
7.1 The parties intend that an independent contractor relationship is created by this
Agreement. The City is interested primarily in the results to be achieved; subject
to the scope of services and the specific requirements of this Agreement, the
implementation of services will lie solely with the discretion of the Consultant. No
agent, employee, officer or representative of the Consultant shall be deemed to be
an employee, agent, officer, or representative of the City for any purpose, and the
employees of the Consultant are not entitled to any of the benefits or privileges the
City provides for its employees. The Consultant will be solely and entirely
responsible for its acts and for the acts of its agents, employees, officers,
subcontractors or representatives during the performance of this Agreement.
7.2 In the performance of the services provided in this Agreement, Consultant is an
independent contractor with full authority to control and direct the performance of
the details of the work, however, the results of the work contemplated herein must
meet the approval of the City and shall be subject to the City's general rights of
inspection and review to secure the satisfactory completion thereof.
7.3 The Consultant shall comply with all State and Federal laws including, but not
limited to:
7.3.1 The definition requirements of RCW 50.04.140 (Employment Security).
7.3.2 RCW 51.08.195 (Industrial Insurance).
7.3.3 Obtain a City of Pasco business license.
7.4 The City may, at its sole discretion, require the Consultant to remove any employee,
agent or servant from employment on this Project who, in the City's sole discretion,
may be detrimental to the City's interest.
8. Indemnification.
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 4 of 9
8.1 The Consultant shall defend, indemnify, and hold harmless the City, its officers,
officials, employees, and volunteers harmless from any and all claims, injuries,
damages, Iosses or suits including attorney fees, arising out of or resulting from the
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.
8.2 However, 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, including the duty and cost
to defend, 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 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.
8.3 No liability shall attach to the City by reason of entering into this Agreement except
as expressly provided herein.
8.4 This indemnification shall include damages, penalties and attorney fees sustained
as a result of Consultant's delayed or failed performance of Section 6 above.
9. 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'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.
9.1 Minimum Scope of Insurance. Consultant shall obtain insurance of the types and
coverage described below:
9.1.1 Automobile Liability insurance covering all owned, non -owned, hired and
leased vehicles. Coverage shall be at least as broad as Insurance Services
Office (ISO) form CA 00 01.
9.1.2 Commercial General Liability insurance shall be at least as broad as ISO
occurrence form CG 00 01 and shall cover liability arising from premises,
operations, stop -gap independent contractors and personal injury and
advertising injury. The City shall be named as an additional insured under
the Consultant's Commercial General Liability insurance policy with
respect to the work performed for the City using an additional insured
endorsement at least as broad as ISO endorsement form CG 20 26.
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 5 of 9
9.1.3 Workers' Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
9.1.4 Professional Liability insurance appropriate to the Consultant's profession.
9.2 Minimum Amounts of Insurance. Consultant shall maintain the following
insurance limits:
9.2.1 Automobile Liability insurance with a minimum combined single limit for
bodily injury and property damage of $1,000,000 per accident.
9.2.2 Commercial General Liability insurance shall be written with limits no less
than:
® $2,000,000 each occurrence; and
® $2,000,000 general aggregate;
9.2.3 Professional Liability insurance shall be written with limits no less than:
® $2,000,000 per claim; and
® $2,000,000 policy aggregate limit;
9.3 Other Insurance Provision. The Consultant's Automobile Liability, Professional
Liability, and Commercial General Liability insurance policies are to contain, or be
endorsed to contain that they shall be primary insurance as respect the City. Any
insurance, self-insurance, or self-insured pool coverage maintained by the City
shall be excess of the Consultant's insurance and shall not contribute with it.
9.3.1 The Consultant's insurance shall be endorsed to state that coverage shall not
be cancelled by either party, except after thirty (3 0) days prior written notice
by certified mail, return receipt requested, has been given to the City.
9.4 Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best rating of not less than A: VII.
9.5 Verification of Covera e. 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 Agreement before commencement of the work.
9.6 Notice of Cancellation. The Consultant shall provide the City with written notice
of any policy cancellation within two (2) business days of their receipt of such
notice.
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 6 of 9
9.7 City Full Availability of Consultant Limits. If the Consultant maintains higher
insurance limits than the minimums shown above, the City shall be insured for the
full available limits of Commercial General and Excess or Umbrella liability
maintained by the Consultant, irrespective of whether such limits maintained by the
Consultant are greater than those required by this Agreement or whether any
certificate of insurance furnished to the City evidences limits of liability lower than
those maintained by the Consultant.
9.8 Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the
insurance as required shall constitute a material breach of contract, upon which the
City may, after giving five (5) 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
sums 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.
10. Nondiscrimination. In the performance of this Agreement, the Consultant will not
discriminate against any employee or applicant for employment on the grounds of race,
creed, color, national origin, sex, marital status, age or the presence of any sensory, mental
or physical handicap; provided that the prohibition against discrimination in employment
because of handicap shall not apply if the particular disability prevents the proper
performance of the particular worker involved. The Consultant shall ensure that applicants
are employed, and that employees are treated during employment in the performance of
this Agreement without discrimination because of their race, creed, color, national origin,
sex, marital status, age or the presence of any sensory, mental or physical handicap.
Consultant shall take such action with respect to this Agreement as may be required to
ensure full compliance with local, State and Federal laws prohibiting discrimination in
employment.
11. Covenant A ainst Contin ent Fees. The Consultant warrants that it has not employed
nor retained any company, firm, or person, other than a bona fide employee working
exclusively for the Consultant, to solicit or secure this Agreement; and that it has not paid
or agreed to pay any company, person or firm, other than a bona fide employee working
exclusively for the Consultant, any fee, commission, percentage, brokerage fee, gift, or
other consideration contingent upon or resulting from the award or making of this
Agreement. For breach or violation of this warranty, the City shall have the right to
terminate this Agreement.
12. Assignment and Subcontracting.
12.1 The City has awarded this Agreement to the Consultant due to its unique
qualifications to perform these services. The Consultant shall not assign (or
subcontract other than as specifically identified in Exhibit A) its performance under
this Agreement or any portions of this Agreement without the prior written consent
of the City, which consent must be sought at least thirty (30) days prior to the date
of any proposed assignment.
Professional Services Agreement — FCS GROUP Agreement No. 22-030
Irrigation Utility Rate Study and Connection Charge Update Page 7 of 9
12.2 Any work or services assigned or subcontracted hereunder shall be subject to each
provision of this Agreement including Section 6, Public Records; Section 10,
Nondiscrimination; proper bidding procedures where applicable; and all local, State
and Federal statutes, ordinances and guidelines.
12.3 Any technical or professional service subcontract not listed in this Agreement, must
have prior written approval by the City.
13. Termination.
13.1 Termination for Convenience. Either party may terminate this Agreement for any
reason upon giving the other party no less than ten (10) business days written notice
in advance of the effective date of such termination.
13.2 Termination for Cause. If the Consultant fails to perform in the manner called for
in this Agreement, or if the Consultant fails to comply with any other provisions of
this Agreement and fails to correct such noncompliance within five (5) business
days of written notice thereof, the City may terminate this Agreement for cause.
Termination shall be effected by serving a notice of termination on the Consultant
setting forth the manner in which the Consultant is in default. The Consultant will
only be paid for services and expenses complying with the terms of this Agreement,
incurred prior to termination.
14. General Provisions.
14.1 For the purpose of this Agreement, time is of the essence.
14.2 Notice. Notice provided for in this Agreement shall be sent by:
14.2.1 Personal service upon the Project Administrators; or
14.2.2 Certified mail to the physical address of the parties, or by electronic
transmission to the e-mail addresses designated for the parties below.
14.3 The Project Administrator for the purpose of this Agreement shall be:
For the Cite:
Steve M. Worley, P.E., or designee
Public Works Director
525 North 3`'
PO Box 293
Pasco WA 99301
WorlgyS(a)pasco-wa. gov
Professional Services Agreement — FCS GROUP
Irrigation Utility Rate Study and Connection Charge Update
For the Consultant:
Brooke Tacia., or designee
Project Manager
7525 166"' Ave. NE, Suite D-215
Redmond, WA 98052
:T@fcsgroup.com
Agreement No. 22-030
Page 8 of 9
15. Dispute Resolution.
15.1 This Agreement has been and shall be construed as having been made and entered
into and delivered within the State of Washington and it is agreed by each party
hereto that this Agreement shall be governed by the laws of the State of
Washington.
15.2 In the event of a dispute regarding the enforcement, breach, default, or
interpretation of this Agreement, the Project Administrators, or their designees,
shall first meet in a good faith effort to resolve such dispute. In the event the dispute
cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, with both parties waiving the right
of a jury trial upon trial de novo, with venue placed in Pasco, Franklin County,
Washington. The substantially prevailing parry shall be entitled to its reasonable
attorney fees and costs as additional award and judgment against the other.
16. Nonwaiver. Waiver by the City of any provision of this Agreement or any time limitation
provided for in this Agreement shall not constitute a waiver of any other similar event or
other provision of this Agreement.
17. Integration. This Agreement between the parties consists in its entirety of this document
and any exhibits, schedules or attachments. Any modification of this Agreement or change
order affecting this Agreement shall be in writing and signed by both parties.
18. Authorization. By signature below, each party warrants that they are authorized and
empowered to execute this Agreement binding the City and the Consultant respectively.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
date first written above.
ATTEST:
Debra C. Barham, City Clerk
Professional Services Agreement — FCS GROUP
Irrigation Utility Rate Study and Connection Charge Update
CONSULTANT
Angie S ez, Vice President
APPROVED AS TO FORM:
Kerr Fergi
0PLLC, City Attorney
Agreement No. 22-030
Page 9 of 9
FCS GROUP
Solutions -Oriental (:onsulring
FmHeadquarlion;
Redmond Town Center
7525166a Ave NE, Ste D-215
Redn , Washington 98052
CITY OF PASCO
EXHIBIT A
Established in 1988
Washington 1425.867.111302
Oregon 1503.841.6543
Colorado 1719.284.9168
IRRIGATION UTILITY RATE STUDY AND CONNECTION
CHARGE UPDATE
FCS GROUP is pleased to submit this proposed scope of services and budget to complete a rate study
and connection charge update for the City of Pasco's Irrigation Utility. The City's study needs were
discussed via phone call with Brian Cartwright, the City's CIP Project Manager. As defined in the
task plan, we follow a structured method to arrive at rate and connection charge outcomes, which will
enable us to perform the work in an orderly, efficient and results -oriented manner. The tasks noted
below are proposed as part of this effort.
TASK PLAN
Task 1 1 Project Initiation Meeting
A project initiation meeting will be scheduled before the commencement of the project with FCS and
the City project team. This meeting will establish the goals and objectives of the overall project and
focus the efforts of the project team. The items covered at the meeting include review of the scope of
work, identification of project objectives, expectations and deliverables, outlining the project
schedule and key milestone review points and discussion of appropriate lines of communication. We
have budgeted this meeting to be conducted via remote session.
Task 2 1 Data Collection
FCS GROUP will provide a data needs list encompassing historical and projected revenue, expenses,
fiscal policies, capital plans, fund balances, comprehensive plans, fixed asset data and system
capacities. The data will be reviewed, analyzed and validated for inclusion in the study process.
Task 3 1 Revenue Requirement
This task encompasses developing a multi-year (20 year) financial management toolset, ensuring that
the plan meets the projected total financial needs of the utility through the generation of sufficient,
sustainable revenue. Annual cash flow needs are developed by identifying expenses incurred to
operate and manage the system including:
0 Capital investment funding (improvements, expansion, and replacement)
s Expenses incurred to operate, maintain, and manage the system
• Debt repayment
* Cash flow needs
0 Fiscal policy achievement
CITY OF PASCO
Irrigation Rate Study and Connection Charge Update
Tasks are as follows:
October 2022
page 2
» Develop a forecast of operating revenues and expenses to reflect the most recent approved
budgets. Adjust for any known future changes in annual non -capital costs associated with the
operation, maintenance, and administration of the system. Changes may include additional
staffing needs and other operating costs associated with maintaining the system along with
initiating new or enhanced program activities.
» Incorporate the most recent capital plans, identifying the capital projects required to maintain
the system in good repair. Develop a capital funding analysis that balances available funding
from rate revenue, reserve funds, contributions and additional debt, if needed.
» Evaluate cash flow needs to meet existing and anticipated new annual debt service
requirements and debt coverage requirements.
» Monitor City fiscal policy targets and metrics for compliance — such as reserve levels, system
reinvestment funding and debt coverage. Identify whether there are possible enhancements
that would strengthen the financial health of the system.
» Update the fund balance tracking analysis to track existing City funds. The analytical module
will include annual inflows and outflows of funds and monitor target balances for compliance
with established fiscal policies.
» Test the sufficiency of the system's current revenues in meeting all annual system
obligations. Identify any projected shortfalls over the forecast period. Rate revenue
sufficiency will be tested from two perspectives: the ability to meet all cash obligations, and
the attainment of any debt coverage requirements.
» Design a rate implementation strategy that meets the system's financial obligations over the
twenty-year planning horizon and provides smooth and moderated impacts to ratepayers.
» Develop rate scenarios to evaluate the impact of changes to key variables such as funding
sources, growth rates, capital project need and timing, or others identified by the City. The
budget includes three (3) alternative scenarios.
» At the end of the engagement, we will deliver an electronic copy of the updated financial
planning model for continued internal use.
Task 4 1 Rate Design
Rate design determines how the target level of revenue will be generated. No rate structure changes
are anticipated at this time. Any rate adjustments required will be applied equally to each rate class
and rate component (fixed and/or variable).
Monthly bill impacts of current and future rates will be calculated for comparison. In addition, a
comparative survey will be completed for up to five (5) neighboring utilities.
Task 5 1 Connection Charge Analysis
A connection charge is a one-time charge imposed as a condition of service on new development or
on expanded connection to the irrigation system. The charge represents a prorated share of the capital
investment made to provide system capacity. The charge considers costs associated with existing
assets (which were oversized to accommodate future growth) as well as planned capital projects.
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CITY OF PASCO
Irrigation Rate Study and Connection Charge Update
October 2022
page 3
Regular connection charge updates promote equity between existing customers and growth, ensuring
that new customers bear an equitable share of the cost of existing infrastructure and planned future
facilities. Key analytical tasks are as follows:
• Follow State law, legal precedence, and industry guidelines related to connection charges
Revised Code of Washington (RCW) statute for Cities (RCW 35.92.025).
Develop the existing cost basis including the original cost of existing system assets (net of donated
facilities), plus applicable interest (carrying costs) on those assets. The calculation will use the most
recent year-end asset register inventory of infrastructure values as a basis. Identify funding from
grants, developer contributions, local facility charges and/or other sources not directly funded from
utility revenue.
The future cost basis includes future capital improvement projects planned within the next 10-20
years. We will work closely with the City staff to allocate capital projects to or between
repair/replacement, improvement and/or expansion.
Develop existing and future capacity over which the cost basis is to be allocated. This includes an
analysis of capacity within the existing system as well as future capacity available after the
identified capital projects are completed.
• Calculate the maximum allowable connection charge and develop a proposed schedule of
charges. We will recommend an appropriate schedule based on meter customer equivalents or
equivalent residential units.
Task 6 1 Meetings/Presentations
During the study process, it will be important to interact frequently with staff throughout the project,
to ensure that the findings and recommendations reflect approaches that are understood by impacted
parties and can be implemented within the City's administrative practices. The following meetings I
presentations are proposed.
• Three (3) staff project team review meetings to review study results at key milestones.
>> One (1) remote meeting to review key assumptions and draft findings of the revenue
requirement analysis;
o One (1) remote meeting to review revised revenue requirement outcomes and draft
connection charge analysis; and
>> One (1) remote meeting to review final rate strategies and maximum allowable connection
charges.
lb One (1) workshop/presentation with the City Council to present the study results and incorporate
feedback, including presentation development.
We are happy to provide additional meetings as requested. The additional meetings will be billed on
a time and materials basis.
Task 7 1 Documentation
A written report documenting the rate study process, methodology, key assumptions, results and
recommendations will be provided. Included will be one (1) electronic copy of the report as well as
the modeling toolset for the utility.
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CITY OF PASCO
Irrigation Rate Study and Connection Charge Update
SCHEDULE
October 2022
page 4
Completion of the analysis is based on a variety of issues. These issues include timeliness of receipt
of requested data/information; quality of data; ability to schedule meetings in a timely manner; and
the ability of the City to provide policy direction for the study to move forward at key study
milestones. A specific project schedule that meets the City's needs will be developed during the
initial project meeting,
BUDGET
The total proposed level of effort to complete the Irrigation rate study and connection charge update
is summarized below. Our normal billing practice is to bill based on time and materials actually
expended, not to exceed the total budget. The budget includes one on-site meeting with the City
Council. We would be more than happy to negotiate the appropriate level of effort for this project, if
we have scaled our approach out of line with the City's needs and/or expectations.
(TASK - — — -
Project Initiation
Task 1- Initial Project Meeting 1 2 2 2 7 $
1,140
Task 2 -Data Collection - 2 4 2 8 $
1,150
Technical Analysis
Task 3- Revenue Requirement 4 20 40 - 64
10,820
Task 4- Rate Design (no structure changes) 1 2 8 11
1,830
Task 5- Connection Charge Pneloa 4 16 30 50
8,590
Task 6- Meetings and Presentations
•Staffprojectteamreviewmeeting - RR Draft
2 2 2
6
1,240
Staff project team review meeting - RR Update & CC Draft
2 2 2
6
1240
Staff project team review meeting - Final RR and CC
2 2 2
6
1240
1(One) Council Meeting (w/presentation development)
2 8 4
14
2,700
Task7-Documentation
2 4 16 4
26
4,020
�.
,
r .
Expenses —
$300
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