HomeMy WebLinkAboutFCS Group - Connection Charge Analysis & Cost of Service Rate Model Update (Agreement No. 20-027)PROFESSIONAL SERVICES AGREEMENT
PWRF Connection Charge Analysis & Cost of Service Rate Model Update
Agreement No. 20-027
THIS AGREEMENT is made and entered into between the City of Pasco, a Washington
Municipal Corporation, hereinafter referred"City", and FCS Group, hereinafter referred to
as "Consultant," on the day of I L , 2020.
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.
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,
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 12/31/2021.
3. Compensation and Payment.
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.
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
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PWRF Connection Charge Analysis & Cost of Service Rate Model Update Page I of 9
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 page 5 of [Exhibit A],
plus actual expenses incurred as provided under this Agreement, but not to
exceed a total of 530.170.00 without the prior written authorization by the
City.
4. Re orts and Inspections.
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.
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.
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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
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
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PWRF Connection Charge Analysis & Cost of Service Rate Model Update Page 3 of 9
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.
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, losses 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
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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 Scone 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 CO 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.
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:
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PWRF Connection Charge Analysis & Cost of Service Rate Model Update Page 5 of 9
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:
® Two million US dollars $2,000,000 each occurrence; and
® Two million US dollars $2,000,000 general aggregate;
9.2.3 Professional Liability insurance shall be written with limits no less than:
® Two million US dollars $2,000,000 per claim; and
® Two million US dollars $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 (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 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.
9.7 Cite Full AvailabilitN 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 ofwhether 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
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PWRF Connection Charge Analysis & Cost of Service Rate Model Update Page 6 of 9
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 Against Contingent 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 Subcontractina.
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.
I2.2 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.
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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. 1f 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:
14.3 .1 For the City: Steve M. Worley, P.E, or his/her designee
Public Works Director
525 North 3'd
PO Box 293
Pasco WA 99301
`,V;;Jc,15(2yasco-wa.¢ov (e-mail address)
14.3.2 For the Consultant: Brooke Tacia, or his/her designee
Project Manager
7525 166' Ave. NE, Site D-215
Redmond, WA 98052
Brooker # s rou &%,..-:� (e-mail address)
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
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PWRF Connection Charge Analysis & Cost of Service Rate Model Update Page 8 of 9
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 party 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. Inteeration. 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. Authorisation. 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.
CITY
Steve M. Worley, Public Works Di
ATTEST:
Debra C. Barham, City Clerk
APPROVED AS TO FORM:
Kerr) er an
0. PLLC, City Attorney
CONSULTANT
Angie S,i chez. Vice President
Professional Services Agreement — FCS Group Agreement No. 20-027
P WRF Connection Charge Analysis & Cost of Service Rate Model Update Page 9 of 9
EXHIBIT A
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CITY OF PASCO
PROCESS WATER REUSE FACILITY
CONNECTION CHARGE ANALYSIS AND COST OF SERVICE
RATE MODEL UPDATE
FCS GROUP is pleased to submit this proposed scope of services and budget to update the
connection charge analysis and cost of service rate model for the Process Water Reuse Facility
(PWRF). The City is currently completing a revised PWRF Capital Facilities Plan that has identified
improvements and upgrades to the existing plant along with future capital requirements to address
new service requests. This study is planned as two separate but related tasks, with the connection
charge analysis planned as the first step. Following the connection charge analysis, the City's
existing rate model will be updated to determine cost of service based monthly rates to ensure
ongoing operational and future capital costs are fully satisfied and customers are charged
commensurate with the cost incurred to serve them. The tasks noted below are required for an update
of the connection charge analysis and existing PWRF rate model.
Task 1 - Connection Charge
TASK 1A I CONNECTION CHARGE ANALYSIS
A connection charge is a one-time charge imposed as a condition of service on new connections to
the PWRF. Connection charges promote equity between existing and new customers ensuring that
new customers bear an equitable share of the cost of existing infrastructure used to provide service.
The charge represents a prorated share of the capital investment made to provide service. The charge
generally considers costs associated with existing assets as well as planned capital projects. Since
future projects will be debt financed and paid for via an annual debt service payment, the connection
charge will be isolated to the existing system assets. This task includes the following elements:
N Follow State law, legal precedence, and industry guidelines related to connection charges -
Revised Code of Washington (RCW) statute for Water -Wastewater Cities (RCW 35.92.025)
is the enabling legislation;
e Evaluate alternatives for buy -in to the existing system including: Original cost plus interest,
original cost less depreciation, replacement cost less depreciation or another staff requested
alternative;
• Define system capacity (customer base the PWRF can serve with the existing system) by area
of benefit (total system capacity, Foster Wells system capacity and Columbia East system
capacity);
Update existing asset list to include assets currently under construction. Develop asset
CITY OF PASCO
PWRF Connection Charge and Cost of Service Rate Study Update
June 2020
page 2
allocation process to assign shares of assets to area of benefit. Separate charge into three
components: General Benefit, Foster Wells and Columbia East;
Calculate the maximum allowable charge for each component;
TASK 1 B I CONNECTION CHARGE PROJECT REVIEW
MEETINGS
It will be important to review the methodology, approach and results with the City project team to
make certain that the study develops work products collaboratively, reflecting the industry expertise
of the project team and the specific needs and goals of staff and management.
The study has assumed the use of the interactive remote computer application "RingCentraill" over
a conference call to minimize budget. RingCentrall allows all parties to view documents via an
Internet connection and see edits and changes made to a shared document in real time. Four project
review meetings (l hour in duration) are recommend for this project.
TASK 1C I CONNECTION CHARGE DOCUMENTATION -
OPTIONAL
A technical memorandum will document the connection charge analysis process, methodology, key
assumptions, results and recommendations. The City will be provided an electronic copy of the
memorandum for reproduction.
Task 2 - Cost of Service Rate Model Update
TASK 2A I RATE STUDY UPDATE PROJECT KICK OFF
MEETING
FCS GROUP will schedule a project initiation meeting with the City project team prior to commencing
work on the rate study update portion of this study. The meeting will identify study objectives, review
methodology and expectations, confirm schedule, and discuss team roles. We recommend this meeting
be conducted remotely to save budget.
TASK 213 I RATE STUDY DATA COLLECTIONNALIDATION
FCS GROUP will provide a data needs list encompassing historical and projected revenue, expenses,
capital improvement pians, debt schedules, fiscal policies, deferred maintenance strategies and other
relevant planning information. The data will be reviewed, analyzed and validated for inclusion in the
study process.
TASK 2C I REVENUE REQUIREMENT
FCS GROUP will update the revenue requirement to include the most recent budget projections,
growth assumptions, and capital improvement plans. The following components define the
comprehensive needs of the PWRF on a standalone basis:
Long-term capital investment funding (improvements, expansion, and replacement)
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GROUP www. fcsgroup.c:::r.
CITY OF PASCO June 2020
PWRF Connection Charge and Cost of Service Rate Study Update page 3
Expenses incurred to operate, maintain, and manage the system
Debt repayment
Cash flow needs
■ Fiscal policy achievement
We will design the analysis to be flexible and stable enough to analyze multiple scenarios. Sub -tasks
include:
a. Develop the forecast of operating revenues and expenses to reflect the most current budget.
Adjust for any known future changes in annual non -capital costs associated with the
operation, maintenance, and administration of the system, such as additional staffing needs
and other operating costs associated with maintaining the systems along with initiating new
or enhanced program activities.
b. Incorporate the most recent capital plans from the recently completed value engineering
study. Develop a capital funding analysis that balances available funding from rate revenue,
reserve funds and additional debt.
c. Update the capital reinvestment strategy for the utility, identifying the annual funding target
for replacement of utility infrastructure.
d. Update the reserve analysis for compliance with existing policies and targets.
e. Evaluate cash flow needs to meet existing and anticipated new annual debt service
requirements and debt coverage requirements.
f. Test the sufficiency of 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.
g. Develop an annual rate transition strategy that meets the PWRF system's financial
obligations over a 3-6 year planning horizon.
h. Provide up to three (3) sensitivity analyses to evaluate the impact of changes to key variables
such as funding sources, growth rates, project timing, or others identified by the City.
TASK 2D 1 COST ALLOCATION
The cost allocation task will be updated for the PWRF. Customer permit limit characteristics developed
in the original 2018 PWRF rate study will be updated, if necessary, and used to develop cost allocation
factors. Existing rates will be reviewed for modifications. The allocation factors used will be based on
system cost data and engineering/planning criteria in order to assign utility cost recovery to customers
in proportion to their facility requirements and capacity allocations.
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CITY OF PASCO June 2020
PWRF Connection Charge and Cost of Service Rate Study Update page 4
TASK 2E I RATE DESIGN
The rate design task will update the existing rate structures for alignment with the City's goals and cost
allocations identified in task 2D while generating sufficient revenue to meet the revenue requirement
forecast. Key task outcomes include the following:
a. Update rate structures as warranted to achieve total system cost recovery while promoting the
City's pricing goals and objectives.
b. Bill comparisons will be generated comparing the impact of the rate structure update on typical
bills of representative customers from each processor.
TASK 2F I MEETINGS
It will be important to interact frequently with City staff 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. Review meetings can be conducted
remotely to save budget.
a. Meet with City staff in up to three (3) meetings to review study results at key milestones. We
anticipate the following review meetings;
1 remote meeting to review revenue requirement and cost allocation
1 remote meeting to review proposed rate designs/structures
1 remote meeting to review edits incorporated after the rate design meeting
TASK 2G ( RATE STUDY DOCUMENTATION - OPTIONAL
FCS GROUP will document findings and provide a copy of the spreadsheet analysis for future City
use.
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 rate study, the results and conclusions of the study, and recommendations.
Spreadsheet Model — FCS GROUP will deliver a final copy of the Excel -based spreadsheet
model to the Finance Director for City use.
**30 FCS GROUP www.fcsgroup.com
CITY OF PASCO
PWRF Connection Charge and Cost of Service Rate Study Update
BUDGET
June 2020
page 5
The total proposed level of effort to complete the PWRF connection charge analysis and cost of
service rate model update is summarized below. Our normal billing practice is to bill based on time
and materials actually expended, not to exceed the total budget. 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. In addition, the two separate tasks discussed are shown in
separate budgets below so that the City may choose to contract for each separately or as one joint
effort.
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(TASK
PWRF Connection Charge Update
Task la- Connection charge analysis
4 30 2
36
$ 6,510
Task lb - Project review meetings (4 @ 1 hour)
4 4
8
1,780
Task lc - Documentation o 'onal
2 4 -
6
1,240
y/
PWRF Cost of Service Rale Model Update
Task 2a -Project kick-offineeting
1 1 2
4
$ 625
Task 2b- Data colleclar tidation
- 6
6
1,050
Task 2c - Revenue requirement
2 15 -
17
3,165
Task 2d -Cost allocation
2 20
22
4,040
Task 2e -Rate design
2 8 -
10
1,940
Task 2f -SM review meetings
- Revenue requirementficost allocation
1 2
3
620
- Draft rate design
1 2
3
620
- Final rate design
1 2
3
620
Task 2y- Rate siudydocumentation (optional)
2 20 4
26
4,400
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