HomeMy WebLinkAboutFCS Group, Inc. - Water & Sewer Capital Expansion Fee Study PSAPERSONAL SERVICES AGREEMENT
FCS GROUP
Water & Sewer Capital Expansion Fee Study
TRIS AGREEMENT is entered by and between the City of Pasco (hereinafter `City') and
FCS Group (hereinafter `Consultant') for the purpose of contracting for personal services in the
capacity as Financial Consultants.
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; and
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 12/31/2022.
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
issued. Payment shall occur within thirty (30) days of receipt and approval of an
invoice.
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Water & Sewer Capital Expansion Fee Study Page 1 of 9
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 $27,590 without the prior written authorization by the City;
or
4. ReRorts 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.
5. Ownership and Use of Documents.
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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 if 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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Water & Sewer Capital Expansion Fee Study 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.
7.5 Consultant as an independent contractor and not an employee shall not be entitled
to any employee benefits including but not limited to vacation time, sick leave, paid
time off, or paid holidays.
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.
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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 caused by
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
Icascd vehicics. Coverage shall be at least as broad as Insurancc Scrviccs
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 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 CO 20 26.
9.1.3 Workers' Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
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Water & Sewer Capital Expansion Fee Study Page 5 of 9
9.1.4 Professional Liability insurance appropriate to the
[Contractor's/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 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 Ascenta.bility 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 Coverage. 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 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
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Water & Sewer Capital Expansion Fee Study Page 6 of 9
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
[Contractor/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 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 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.
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,
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Water & Sewer Capital Expansion Fee Study Page 7 of 9
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 affected 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:
14.3.2 For the Consultant:
Personal Services Agreement — FCS Group
Water & Sewer Capital Expansion Fee Study
Steve Worley, P.E., or designee
525 N 3"1 Ave
Pasco, WA 99301
worIcys@pgEpq:Va..gov
pasco-wa.gov
Brooke Tacia, or designee
Project Manager
7525 1661' Ave NE D-215
Redmond, WA 98052
hrooket�`?a,fcszroup.conn
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 RC W 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. 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.
CITY O WVy4SH1NGTQJNCONSULTANT
Steve . W,1)ir or Angie Sa ez - Vice President, FVS Group
Debra C. Barham, City Clerk
TO
Kerr Fergus ,*1sLLC, City Attorney
a] Services Agreement — FCS Group
& Sewer Capital Expansion Fee Study Page 9 of 9
•:;? FCS GROUP " Cmkr Wash4ton142 86.1802
S(Aititlns-OriLtual (.insulting 7525166hAve NE, N, D-215 0"M 1503.841.6543
Redmond, WaNwg9on 98052 Cdxado 1719.284.9168
EXHIBIT A
CITY OF PASCO
WATER AND SEWER CAPITAL EXPANSION FEE UPDATE
The City of Pasco (City) has requested an update of the City's water and sewer capital expansion
fees. The one-time fee is charged to new development or expanded development as a condition of
service. FCS GROUP is pleased to submit this proposed scope of services and budget to complete
the capital expansion fee update. The analysis will be based on financial information provided by the
City including existing asset data, system capacities and future capital related to expansion of each
system. The tasks required to complete the update are as follows:
Task 1 - Data Collection/Validation
Prepare an initial data request identifying data required for completion of the update. Review,
analyze, and validate data as necessary for use in formulating the technical analyses.
Task 2 - Project initiation Meeting
A project initiation meeting will be scheduled before the commencement of the project with the
consultant and 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, identify project objectives, expectations and deliverables, outline the project
schedule and key milestone review points and discuss appropriate lines of communication. We have
budgeted this meeting to be conducted via remote session.
Task 3 - Capital Expansion Fee Update
A capital expansion fee is a one-time charge imposed as a condition of service on new development
or on expanded connection to the water or sewer 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. 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 Water -Wastewater Cities (RCW 35.92.025).
■ Discuss alternative methodologies available for calculation of the fee to determine what approach is
consistent with the City's goals and objectives.
■ Update 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.
City of Pasco January 2022
Water and Sewer Capital Expansion Fee Update Page 2
• The future cost basis includes future capital improvement projects planned within the next 10-20
years and listed in an approved comprehensive plan. 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 customer basis over which the cost basis is to be allocated. This
includes an analysis of existing customers, planned growth in the customer base, and system
functional capacities (e.g. treatment, storage, pumping, transmission/distribution, collection,
etc.).
■ Calculate the maximum allowable capital expansion fee and develop a proposed schedule of
charges. We will review the existing fee schedule for consistency and will recommend an
appropriate schedule based on meter customer equivalents or equivalent residential units.
Task 4 - Project Review Meetings
Four (4) project review meetings are planned with City staff to review key assumptions, results and
recommendations at key points during the study. To minimize budget, these meetings will be
conducted remotely through RingCentral conferencing.
Task 5 1 Presentations (optional)
One (1) onsite presentation to the City Council is anticipated to share initial study results/findings
and to gain input and direction from the City Council. This task includes development of the
PowerPoint presentation materials.
We are more than happy to provide additional presentations to the Council, public or stakeholder
groups, at the City's request. Additional meetings may be requested and will be billed at time and
material.
Task 6 - Documentation (optional)
Craft an executive level memorandum documenting the study process, planning factors, key issues,
results and recommendations.
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.
We have developed our cost estimate to accommodate the request by the City. Our estimate for the
cost of completing the water and sewer capital expansion fee update is an amount not to exceed
$27,590. The process tasks such as project review meetings, council presentation and documentation
are an area the City may reduce as needed to accommodate budget constraints. The total budget
without the council presentation and documentation is $20,370. The detailed project budget is
provided below.
City of Pasco January 2022
Water and Sewer Capital Expansion Fee Update Page 3
We are 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 expectations.
MA 1_t
FCS GROUP
2022 STANDARD FEE SCHEDULE
Effective November 8, 2021
LABOR 1
POSITION/TITLE
Principals
Project Managers
Consultants
Administrative and Technical Support
Public Relations
Technical Writer/Graphic Artist
Administrative Support
Standard Rate
Standard Rates
Standard Rates
BILLING RATE
$280
$185-S215
$145-$175
$155
$130
$ 90
Major direct expenses, such as travel, mileage, and lodging, will be charged at cost. Other expenses
will not be directly charged unless by mutual agreement of the client and FCS GROUP and specific
terms will be established in advance prior to expenditure and billing.
SUBCONSULTANTS
When applicable, subconsuitants will be charged at invoiced cost plus 10%.
' Litigation rates are 150% of standard hourly rates for services in support of direct litigation,
settlement negotiations, arbitration and/or mediation processes.
GROUP www.fcsgroup.com