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HomeMy WebLinkAboutFCS Group - Ambulance Utility StudyPROFESSIONAL SERVICES AGREEMENT Ambulance 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. Scope 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. �41 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 ofRCW 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: ❑ $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 3d Ave Pasco WA 99301 12.2.2 For the Consultant: Peter Moy Redmond Town Center 7525 166th 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. lb. 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 / day of J U /LP 2015. CITY OF PASCO, WASHINGTON avid .t.. Man ii&- Dat6 APPROVED AS TO FORM: Leland B. Kerr, City Attorney CONSULTANT Peter Moy Date AMBULANCE COST OF SERVICE AND RATE STUDY CITY OF PASCO, WASHINGTON SCOPE OF WORK AND TASK PLAN Task 1 - Conduct Kick-off Meeting The consultant team will conduct a project kick-off meeting with staff from the Finance and Fire Departments, who will serve as the primary contacts with FCS GROUP for assisting and providing information for the cost of service and rate study. The agenda for this meeting will include basic data collection, a discussion of project goals and parameters, formulation of the project schedule, and discussion of other coordination issues. A written data request will be provided to appropriate City staff members in advance of this meeting. TASK 2 - Review and Analyze Fire Department and Ambulance Costs and Workload Data To determine the cost of service, we will collect and review information on the City's costs to provide its emergency medical services and ambulance services. The review will include the 2014 actual revenues and costs and the 2015 budgeted revenues and costs. Specific 2013, 2014, and 2015 revenue data will be reviewed as well as call and response data for these same years. Because of our methodology for determining availability and demand costs, we will also need to know the total service time spent responding separately to fire/other and EMS incidents by unit, station, and jurisdiction. For all the data needs including the customer billing data, the City will provide the information in a format specified by FCS GROUP. TASK 3 - Develop a Cost of Service Framework After reviewing the City's fire department and ambulance costs, we will develop a cost of service framework consistent with the provision in RCW 35.21.766. We will identify the costs associated with the basic infrastructure needed to respond to calls for service and the costs associated with responding to calls for service. We will review the framework with the City staff to determine if the City has data to support the framework and allocation factors used to distribute the various costs. TASK 4 - Determine the Cost of Service Based on the framework, we will develop a cost of service model that can be used to allocate the costs between fire and EMS/ambulance services as well as between availability and demand cost categories. Availability costs include dispatch, labor, training, equipment, patient care supplies and maintenance of equipment. Demand costs include costs related to the frequency of calls, distances from hospitals, and other costs related to responding to a call. The example below shows how costs -*..-),FCS GROUP AMBULANCE COST OF SERVICE AND RATE STUDY CITY OF PASCO, WASHINGTON are allocated and what often happens when a study is done compared to the budget. TASK 5 - Identify Potential Customer Classes and Cost Allocation Methods To develop the ambulance utility rates, customer classes and the use of the ambulance service must be determined. We will use the City's existing service and customer data that it already has for its ambulance utility. Potential allocation methods will be identified as well as alternative rate structures. In analyzing customer classes, allocation methods, and rate structures, utility rate setting concepts will be used whenever they are applicable to EMS and ambulance services. TASK 6 - Calculate Availability and Demand Rates for Each Customer Class Once customer classes, allocation methods, and rate structures have been identified, the City's revenue requirements for the availability and demand services will be calculated for the potential customer classes. After identifying the costs associated with these services, rates consistent with RCW 35.21.766 will be developed. The current ambulance fees will also be reviewed to determine their impact on the demand costs. Before calculating the rates, the City should address whether the current General Fund subsidy should continue or whether rates should recover the full cost of service after subtracting fees and other miscellaneous revenues. Based on the City policy choice, we will then calculate the rates. If costs are not anticipated to change (i.e. no additional staff will be hired) in the near future, rates can be adjusted by the percentage change in the budgets related specifically to EMS and ambulance services. Based on discussions with the City, a new unit might be considered in the future, and as a result, a five year forecast in Task 7 will be developed to determine the rate impacts of adding another unit. TASK 7 - Develop a Five Year Forecast Once the rates have been established for the base year such as 2014 or 2015 and if the City plans to add additional staffing and/or medic units, a five year forecast will be developed to identify the ambulance rate impacts. We will forecast revenues and costs over the next five years to determine the necessary rate increases needed to support any additional staff or medic units in the future. As part of the analysis, we will need the Fire Department to analyze and forecast EMS incidents and any impacts that an additional unit might have on the fire and EMS workload of the existing units. If a new unit takes incidents away from the existing units additional transport revenues might not occur, but existing units might be more available to respond sooner to multiple EMS calls. TASK 8 - Prepare a Report To document the assumptions, methodology, analysis, and alternatives for establishing customer classes and rates, FCS GROUP will prepare a draft report. We will meet with the City staff to discuss the draft report and will make changes, as appropriate, before issuing a final report. We will provide ten copies of a bound final report and an electronic version of the report. TASK 9 - Present Results FCS GROUP will prepare and make one presentation for the City that could include City staff, a City Council Committee, and/or the full City Council. •:;> FCS GROUP AMBULANCE COST OF SERVICE AND RATE STUDY CITY OF PASCO, WASHINGTON BUDGET ESTIMATE The table below summarizes our estimated cost to perform the above task plan. For expenses we are planning two on-site trips for the review of the preliminary rates and forecast parameters and the City Council presentation. •::> FCS GROUP Consultant Principal Hours Analyst Admin. Total Tasks Moy Support abor Hou Budget Effective Hourly Billing Rates: $225 $120 $80 Task 1 - Conduct Kickoff Meeting 6 6 1 13 $2,150 Task 2 - Review and Analyze Fire Department and Ambulance Costs and Workload Data 4 8 12 $1,860 Task 3 - Develop a Cost of SeNce Framework2 2 4 $690 Task 4 - Determine the Cost of SeNce 8 40 - 48 $6,600 Task 5 - Identify Potential Customer Classes and Cost Allocation Methods 2 4 6 $930 Task 6 - Calculate Availability and Demand Rates for Each Customer Class 4 8 - 12 $1,860 Task 7 - Develop a Five Year Forecast 8 20 28 $4,200 Task 8 - Prepare a Report 24 8 2 34 $6,520 Task 9 -Present Results 4 - 1 5 $980 Travel and Expenses $1,200 Total Required Project Budget 52 96 4 162 S 90 •::> FCS GROUP