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PROFESSIONAL SERVICES AGREEMENT
Utility Rate Study
THIS AGREEMENT is made and entered into between the City of Pasco, a Washington
Municipal Corporation, hereinafter referred to as "City", and FCS Group, hereinafter referred to
as "Consultant."
RECITALS
WHEREAS, the Consultant represents that it is qualified and possesses sufficient skills,
experience, equipment, and necessary capabilities to perform the services and/or tasks as set
forth in this Agreement upon which the City is relying.
NOW, THEREFORE, in consideration of the mutual covenants, and performances
contained herein, the parties agree as follows:
1. Scone of Services. The Consultant shall perform such services and accomplish such
tasks, 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 date of final execution by the signatories to the
agreement and promptly be completed within six calendar months of the date of
execution. Facilitation services may be provided outside of the six month window as
mutually agreed in writing.
3. Compensation and Payment.
3.1 Payment for services provided hereunder shall be made as provided in Exhibit A.
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.
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.
CL 0
4. Reports and Inspections.
4.1 The Consultant 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 Consultant shall maintain books, records and documents related to the
performance of this Agreement. These records shall be subject, at all reasonable
times, to inspection, review, or audit as provided above.
4.3 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, preliminary data, information 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 property of the City. 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.
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.
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).
8. Indemnification.
8.1 The Consultant shall defend, indemnify, and hold harmless the City, its officers,
officials, agents, employees, and volunteers from any and all claims and causes of
action, including, but not limited to, actions of law or administrative proceedings
for all injuries to persons or damages to property, and all losses, damages,
demands, suits, judgments, including attorney fees, arising out of, or as a result
of, or in connection with the work performed under this Agreement, and caused or
occasioned in whole or in part by reason of errors, negligent acts or omissions of
the Consultant or its subcontractors in the performance of this Agreement, except
for injuries and damages caused by the sole negligence of the City, its officers,
employees, agents, and volunteers.
8.2 This waiver has been mutually negotiated by the parties, and the provisions of this
section shall survive the expiration or termination of this Agreement.
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.
9.1 Minimum Scone of Insurance. Consultant shall obtain insurance of the types
described below:
9.1.1 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.
9.1.2 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.
9.1.3 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:
❑ $1,000,000 aggregate
9.2.3 Professional Liability insurance shall be written with limits no less than:
'9 $1,000,000 aggregate
9.3 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:
9.3.1 The Consultant's insurance coverage shall be primary insurance as
respects 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.
9.3.2 The Consultant's insurance shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty (30) days prior written
notice by certified mail, return receipt requested, has been given to the
City.
9.4 Acceptability of Insurers. Insurance is to placed with insurers with a current A.M.
Best rating of not less than ANII.
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. Termination.
11.1 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.
11.2 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.
12. General Provisions.
12.1 For the purpose of this Agreement, time is of the essence.
12.2 The Project Administrator for the purpose of this Agreement shall be:
12.2.1 For the City: Rick Terway,
Director Admin & Community Services
525 North 3'a Ave
Pasco WA 99301
12.2.2 For the Consultant: Angie Sanchez
Redmond Town Center
7525 166d' Ave NE Ste. D-215
Redmond, WA 98052
13. Dispute Resolution.
13.1 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.
13.2 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 party shall be entitled to its reasonable attorney fees and costs as
additional award and judgment against the other.
14. 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.
15. Integration. This Agreement between the parties consist in its entirety of this document
and any exhibits, schedules or attachments verified by initials as a part of Exhibit A. Any
modification of this Agreement or change order affecting this Agreement shall be in
writing and signed by both parties.
16. 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 1 day of , 2015.
CITY OF PASCO, WASHINGTON CONSULTANT
LA -i
Date
APPROAS TO FORM:
Leland B. Ken, City Attorney
Angie Sanchez
Date
13.2 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 party shall be entitled to its reasonable attorney fees and costs as
additional award and judgment against the other.
14. 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.
15. Inteeratiou. This Agreement between the parties consist in its entirety of this document
and any exhibits, schedules or attachments verified by initials as a part of Exhibit A. Any
modification of this Agreement or change order affecting this Agreement shall be in
writing and signed by both parties.
16. 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 _I day of W2015.
CITY OF PASCO, WASHINGTON
David &6bll�+,
AYMS
DeBbie-Clark, City Cldrk
APPROVED AS TO FORM:
Leland B. Kerr, City Attorney
CONSULTANT
Angie nchez
Date
•:J FC S GROUP
Solutions -Oriented Consulting
SCOPE OF WORK
Han Headquarters
Redmond Town Center
7525 166m Ave NE, Ste D-215
Redmond, Washington 98052
Exhibit A
Serving the Western U.S.
and Canada since 1988
Washington 1425.867.7802
Oregon 1503.841.6543
FCS GROUP is pleased to submit this proposed scope of services and budget to complete utility rate
studies for the City of Pasco's (City) Water, Sewer, Storm Drain and Irrigation Water Utilities. As
illustrated in the Task Plan, we follow a structured method to arrive at rate conclusions, which will enable
us to perform the work in an orderly, efficient, and results -oriented manner. The tasks noted below will be
completed for each utility unless specifically noted otherwise.
PROJECT INITIATION MEETING
FCS GROUP will schedule a project initiation meeting with the City project team. Attendees will ideally
include representatives from engineering, operations, administration, finance, and customer service. This
approach has worked successfully in the past by incorporating multiple views and allowing for issues to be
vetted at the beginning of the project. The meeting will introduce the project team, identify study
objectives, review methodology and expectations, confirm schedule, and discuss team roles. We
recommend this meeting be conducted via the interactive computer program GoTo MeetingTM to minimize
budget.
TASK ONE: DATA COLLECTION/VALIDATION
FCS GROUP will provide a data needs list encompassing historical and projected revenue, expenses,
capital improvement plans, debt schedules, fiscal policies, customer billing data and other relevant
planning information. The data will be reviewed, analyzed and validated for inclusion in the study process.
TASK TWO: REVENUE REQUIREMENT
FCS GROUP will develop the revenue requirements to include the most recent budget projections, growth
assumptions, and capital improvement plans. The following components define the comprehensive needs
of each of the utilities on a standalone basis:
• Long-term capital investment funding (improvements, expansion, and replacement)
• Expenses incurred to operate, maintain, and manage the systems
• Debt repayment
• Cash flow needs
• Fiscal policy achievement
We will design the analysis to mirror the City's own funds and to be flexible and stable enough to analyze
multiple scenarios. Sub -tasks include:
2a. Review the actual 2013-2014 customer statistics for each utility to identify demand trends for use
in future projections. Many entities have experienced declining demand in use, analyzing the
City's specific customer use profiles and recalibrating anticipated revenue levels for future
projections is warranted. Of particular emphasis will be validating the customer billing statistics
with the revenue generated. This task has proven beneficial in uncovering anomalies in customer
statistics and/or incorrect billing units that can impact forecast revenue. The compilation of this
data offers consistency throughout the rate study process by using the same units to calculate rate
revenue in the revenue requirement, allocate costs as part of the cost of service, and to design rate
Fi Headquarters GROUP
Serving the Western U.S.Redmond ownenter
and Canada since 1988
Solutions -Oriented Consulting 7525 166m Ave NE Ste D-215 Washington 1 425.867.1802
Redmond, Washington 98052 Oregon 1 503.841.6543
SCOPE OF WORK
FCS GROUP is pleased to submit this proposed scope of services and budget to complete utility rate
studies for the City of Pasco's (City) Water, Sewer, Storm Drain and Irrigation Water Utilities. As
illustrated in the Task Plan, we follow a structured method to arrive at rate conclusions, which will enable
us to perform the work in an orderly, efficient, and results -oriented manner. The tasks noted below will be
completed for each utility unless specifically noted otherwise.
PROJECT INITIATION MEETING
FCS GROUP will schedule a project initiation meeting with the City project team. Attendees will ideally
include representatives from engineering, operations, administration, finance, and customer service. This
approach has worked successfully in the past by incorporating multiple views and allowing for issues to be
vetted at the beginning of the project. The meeting will introduce the project team, identify study
objectives, review methodology and expectations, confirm schedule, and discuss team roles. We
recommend this meeting be conducted via the interactive computer program GoTo Meeting""' to minimize
budget.
TASK ONE: DATA COLLECTION/VALIDATION
FCS GROUP will provide a data needs list encompassing historical and projected revenue, expenses,
capital improvement plans, debt schedules, fiscal policies, customer billing data and other relevant
planning information. The data will be reviewed, analyzed and validated for inclusion in the study process.
TASK TWO: REVENUE REQUIREMENT
FCS GROUP will develop the revenue requirements to include the most recent budget projections, growth
assumptions, and capital improvement plans. The following components define the comprehensive needs
of each of the utilities on a standalone basis:
• Long-term capital investment funding (improvements, expansion, and replacement)
• Expenses incurred to operate, maintain, and manage the systems
• Debt repayment
• Cash flow needs
• Fiscal policy achievement
We will design the analysis to mirror the City's own funds and to be flexible and stable enough to analyze
multiple scenarios. Sub -tasks include:
2a. Review the actual 2013-2014 customer statistics for each utility to identify demand trends for use
in future projections. Many entities have experienced declining demand in use, analyzing the
City's specific customer use profiles and recalibrating anticipated revenue levels for future
projections is warranted. Of particular emphasis will be validating the customer billing statistics
with the revenue generated. This task has proven beneficial in uncovering anomalies in customer
statistics and/or incorrect billing units that can impact forecast revenue. The compilation of this
data offers consistency throughout the rate study process by using the same units to calculate rate
revenue in the revenue requirement, allocate costs as part of the cost of service, and to design rate
Water, Sewer, Storm Drain and Irrigation Water Utilities Rate Study
page 2
structures that generate necessary revenue levels.
2b. Develop the forecast of operating revenues and expenses to reflect budget 2015. Adjust for any
known future changes in annual non -capital costs associated with the operation, maintenance, and
administration of each of the systems such as additional staffing needs and other operating costs
associated with maintaining the systems along with initiating new or enhanced program activities.
2c. Incorporate the most recent capital plans from the comprehensive planning efforts. Develop a
capital funding analysis that balances available funding from rate revenue, reserve funds and
additional debt.
2d. Develop a capital reinvestment strategy for each utility in collaboration with City staff. The
calculation will use asset inventory, replacement cost, useful life, condition (if available), and
construction cost indices. The result will identify the unfunded liability for each utility and an
annual funding target for replacement of utility infrastructure.
2e. Provide a reserve Analysis. We will review existing fund balances (e.g. operating, capital,
contingency, rate stabilization, etc.) for compliance with existing policies and recommend new
fund balance targets as warranted. A review of fund balance distribution to each utility will likely
be required.
2f. Cursory review of indirect cost analysis. This will identify if a more formal study is warranted.
2g. Evaluate cash flow needs to meet existing and anticipated new annual debt service requirements
and debt coverage requirements. Review that the proper allocation of combined debt to each
Utility.
2h. Review the separation of existing costs into fixed and variable components. This analysis will
inform the design of rates, particularly if the balance between fixed and variable costs should be
refined for revenue stability.
2i. Test the sufficiency of each system's current revenues in meeting all system obligations. After
identifying the full array of financial requirements, we will compare those needs against available
rates and miscellaneous operating revenues, identifying 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.
2j. Develop an annual rate transition strategy that meets each system's financial obligations over a 3-6
year planning horizon.
2k. Provide up to two (2) sensitivity analyses, per utility, to evaluate the impact of changes to key
variables such as funding sources, growth rates, project timing, or others identified by the City.
TASK THREE: COST OF SERVICE ANALYSIS
The cost of service analysis (COSA) will provide a defensible basis for assigning "cost shares" and
establishing "equity" for system customers with the development of a series of allocations that will be
based on customer data and engineering/planning criteria in order to assign utility cost recovery to
customers in proportion to their actual demands. This exercise will establish the projected amount of
annual revenue to be recovered from the rates for each class. The results will identify any warranted shifts
in cost burden that could improve equity between customers from the existing rate structure being
evaluated. It should be noted that a formal cost ofservice will be completed for the water and sewer
•:;>FCS GROUP www.fcsgroup.com
Water, Sewer, Storm Drain and Irrigation Water Utilities Rate Study
page 3
utilities only. The cost ofservice for the storm drain and irrigation rates is much more simnlifted and is
generally taken care of with the revenue requirement (task A Key task outcomes include the following:
3a. Determine the appropriate grouping of customers/customer classes to review. The intent of the
service distinction is to evaluate any potential cost differences that may exist in serving different
customer classes or if new service groupings are warranted.
3b. Allocate Costs to Customers. Specific consideration will be given to total utility costs in
relationship to the following functions of service:
3c. Distribute functional cost pools. Each functional cost pool developed above will be distributed to
each existing customer class based on the class demands and facility requirements. The results will
identify any warranted shifts in cost burden from the existing rate structures that could improve
equity.
3d. Provide the unit cost for each major utility service function. The unit costs will serve as the
building block for rate design. The unit costs will assist in comparing how current fixed and
variable rates align with the cost based rates of the system and where adjustments may be
warranted to align with the fixed and variable costs of each system.
TASK FOUR - RATE DESIGN/STRUCTURES
The rate design task will evaluate existing rate structures for alignment with the City's current and/or
recommended fiscal policies, generate sufficient revenue to meet the revenue requirement forecast, and
address inequities identified in the cost -of -service findings. Key task outcomes include the following:
4a. Develop alternative rate structures as warranted to achieve total system cost recovery while
promoting the City's pricing goals and objectives. Specific consideration will be given to the
following:
• Water (two rate structure alternatives)
o Review water meter size ratio differentials
o Discuss if uniform rate structure is appropriate or if there is a need to review a different rate
structure (e.g. tiered rate)
• Sewer (two rate structure alternatives)
o Review and discuss 1,000 cubic foot allowance in base fee for hotel/motel and commercial
customers.
o Discuss average winter water as basis.
• Storm drain (no rate structure changes anticipated)
o Review multi -family per unit rate basis
o Review commercial per parking space rate basis
':;>FCS GROUP www.fcsgroup.com
Base capacity (average demand)
Volume (includes inflow and
infiltration)
Peak Capacity (peak demand)
Strength (BOMSS)
Customer -accounts and meter
& services
Customer -accounts and meter
customer equivalents
Fire Protection
3c. Distribute functional cost pools. Each functional cost pool developed above will be distributed to
each existing customer class based on the class demands and facility requirements. The results will
identify any warranted shifts in cost burden from the existing rate structures that could improve
equity.
3d. Provide the unit cost for each major utility service function. The unit costs will serve as the
building block for rate design. The unit costs will assist in comparing how current fixed and
variable rates align with the cost based rates of the system and where adjustments may be
warranted to align with the fixed and variable costs of each system.
TASK FOUR - RATE DESIGN/STRUCTURES
The rate design task will evaluate existing rate structures for alignment with the City's current and/or
recommended fiscal policies, generate sufficient revenue to meet the revenue requirement forecast, and
address inequities identified in the cost -of -service findings. Key task outcomes include the following:
4a. Develop alternative rate structures as warranted to achieve total system cost recovery while
promoting the City's pricing goals and objectives. Specific consideration will be given to the
following:
• Water (two rate structure alternatives)
o Review water meter size ratio differentials
o Discuss if uniform rate structure is appropriate or if there is a need to review a different rate
structure (e.g. tiered rate)
• Sewer (two rate structure alternatives)
o Review and discuss 1,000 cubic foot allowance in base fee for hotel/motel and commercial
customers.
o Discuss average winter water as basis.
• Storm drain (no rate structure changes anticipated)
o Review multi -family per unit rate basis
o Review commercial per parking space rate basis
':;>FCS GROUP www.fcsgroup.com
Water, Sewer, Storm Drain and Irrigation Water Utilities Rate Study
page 4
• Irrigation Water (no rate structure changes anticipated)
o Review appropriateness of 5,000 square feet/lot size or 5,000 square feet of irrigated area
for irrigation unit basis.
o Discuss with the City specific rate structure issues to review, if any.
4b. Bill Comparisons will be generated comparing the impact of each rate structure change (including
the existing rate structure) on typical bills of representative customers from each customer class.
TASK FIVE - MEETINGS/WORKSHOPS/PRESENTATIONS
It will be important to interact frequently with City staff and Council throughout the project, to ensure that
the findings and recommendations reflect approaches that are understood by impacted parties and that they
can be implemented within the City's administrative practices. In addition, frequent interaction will ensure
that the study develops work products collaboratively, reflecting the industry expertise of the Project Team
and the specific needs and goals of the City. The review points identified with staff will be the first
presentation of analytical outcomes and recommendations held before any presentation to the City
Council. When available, review meetings can be conducted via the interactive computer program GoTo
Meeting'. This program allows users in different locations to review documents and changes in real-time.
This is becoming the preferred method for reviewing follow-up analysis with many of our clients.
5a. Meet with City staff in up to three (3) meetings to review study results at key milestones. We
anticipate the following review meetings;
1 meeting to review revenue requirement and cost of service findings - onsite
1 meeting to review proposed rate designs/structures— Go To MeetingTA4
• 1 meeting to review edits incorporated after the rate design meeting — Go To Meetinem
5b. Meet with City Council one (1) time to present study findings and recommendations. We prefer
this meeting with Council be conducted in a workshop setting.
TASK SIX - DOCUMENTATION
FCS GROUP will document findings and provide a copy of the spreadsheet analysis for future City use.
6a. Technical Memorandum — At the conclusion of the project, we will provide a technical
memorandum that will summarize the methodology and analysis undertaken in completing the
project, the results and conclusions of the study, and recommendations.
6b. Spreadsheet Model — FCS GROUP will deliver a final copy of the Excel -based spreadsheet models
for City use.
':J FCS GROUP www.fcsgroup.com
Water, Sewer, Storm Drain and Irrigation Water Utilities Rate Study
page 5
SCHEDULE
Completion of the studies 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 will be developed during the project initiation meeting.
BUDGET
The total proposed level of effort to complete the water, sewer, storm drain and irrigation water system
rate study is summarized below. Our normal billing practice is to bill based on time and materials actually
expended, not to exceed the total budget. The project fees have been listed by utility for each major task.
If we have scaled our approach out of line with the City's expectations, we would be more than happy to
negotiate the appropriate level of effort.
'**i>FCS GROUP www.fcsgroup.com
Water, Sewer, Storm Drain and Irrigation Water Utilities Rate Study
page 6
COMBINED BUDGET
':JFCS GROUP www.fcsgroup.com
Tool
Managing
Asst Study
Senor
Adlfi.
ESNepd
Labor
Task
Prkvlpal
Manager
Analyst
Support
Hours
Budget
HouryNogRa/es.•
$230
$170
$130
$80
Waterut111ty
Task i - Data CotlerdonNaklation
-
-
2
7
3
$340
Task 2- Revenue Requirement
4
10
36
50
7,300
- Customer sbasks deveopmenWaklation
4
8
28
-
40
5,920
Task 3-CostofService
4
12
28
-
44
6,600
Task 4- Rat Desgn/Structures
2
8
16
26
3,900
Subtotal Water UBiy Rae Study
14
38
110
1
163
$24,060
SewerUWRy
Task1-Dao ColecfoM/asdation
2
1
3
$340
Task 2- Revenue Requirement
4
10
36
50
7300
- Customer smisksdevelopmenWalldaWn
4
8
24
-
36
5,400
Task 3 -Cost of Samoa
4
12
28
44
6,600
Task 4- Rao Design Syucures
2
8
16
_f061
-
26
3,900
Subtotal Sewer UBiy Rao Sbtly
14
38
159
$23,540
Storm Drain Utility
Task 1- Data ColodonNafdalDn
-
-
2
1
3
$340
Task2- Revenue Requirement
4
8
20
32
468D
- Customer datisics deveopmenWaidabon
1
2
4
-
7
1,090
Task 3-CostofServlce (N/A)
-
-
-
-
-
0
Task 4- Rab Deson/Shcures
4
8
8
20
3,320
Subbbl Storm Drab Ugly Rao Study
9
18
34
1
62
$9,830
Irigation WaterU6lRy
Tasks - Data CollemonNaYdafon
-
-
2
1
3
$340
Task 2- Revenue Requirement
4
8
16
-
28
4,360
- Customer slabks developmenWakhaion
1
4
16
21
P990
Task 3-CostofService (NIA)
-
-
-
-
0
Task 4 -Rab Design Mucks"
4
8
8
20
3,320
Subtotal broallon Wabr Uf iy Rae Sudy
9
20
42
1
72
$11,010
Total Technical Analysis
46
114
292
4
456
S68.2A
Combined Effort -lieetings/Documentation
Project Indahn Missing (GoTo Missing)
2
2
2
6
$11060
Task 5- MeebgsMbrlwhotxA' esemafons
- t sblfprojacfbam review mmings(costs)
8
8
-
-
16
3,200
- 2 staff project learn review meetings (GoTo Maefngsbne 2 tour; one 1
hour meetings)
3
3
3
-
9
1,590
-1 Counal Meefts (presenb4on development)
8
4
2
14
2780
Task6-Docurmn6tlon (Technical Men)
2
3
24
4
33
4,410
ProjectAdrmbtration
8
-
-
-
8
11840
Total MeetingsifDocumantatlon
31
20
31
d
e6 1
14,M
Total Labor Budget All
77
134
323
8 1
542 1
$83,120
Labor Hour Distribution
14.21%
24.72%
59.59%
1.48%
100.00%
Expenses (aidinehental cadhote0 - Estimate Billed @actual cost
$1,305
TOTAL PROJECT BUDGETWI EXPENSES
$84,425
':JFCS GROUP www.fcsgroup.com