HomeMy WebLinkAboutFCS Group
RECEIVED
A3.lb.3
MAR 2 1 2006
CITY OF AUBURN AGREEME~A~~~:i~~;)".I.
FOR CONSULTING SERVICES
THIS AGREEMENT made and entered into on this I Lj day of J?J a:.c.-vI- ,
200~, by and between the City of Auburn, a municipal corporation of the State of Washington,
hereinafter referred to as "City" and FCS Group, hereinafter referred to as the "Consultant."
WITNESSETH:
WHEREAS, the City is considering the establishment of an ambulance utility, and is in
need of services of individuals, employees or firms to conduct a cost of service study to identify
the total costs necessary to regulate, operate, and maintain the ambulance utility; and,
WHEREAS, the City desires to retain the Consultant to provide certaiin services in
connection with the City's work on said project; and,
WHEREAS, the Consultant is qualified and able to provide consulting services in
connection with the City's needs for the above-described work/project, and is willing and
agreeable to provide such services upon the terms and conditions herein contained.
NOW, THEREFORE, the parties hereto agree as follows:
1. Scope of Services.
The Consultant agrees to perform in a good and professional manner the tasks described
on Exhibit "A" attached hereto and incorporated herein by this reference:. (The tasks
described on Exhibit "A" shall be individually referred to as a "task," and collectively
referred to as the "services.") The Consultant shall perform the services as an
independent contractor and shall not be deemed, by virtue of this Agreement and the
performance thereof, to have entered into any partnership, joint venture, employment or
other relationship with the City.
2. Additional Services.
From time to time hereafter, the parties hereto may agree to the perfonnance by the
Consultant of additional services with respect to related work or projects. Any such
agreement(s) shall be set forth in writing and shall be executed by the resp'ective parties
prior to the Consultant's performance of the services there under, except as may be
provided to the contrary in Section 3 of this Agreement. Upon proper completion and
execution of an addendum (agreement for additional services), such addendum shall be
incorporated into this Agreement and shall have the same force and effect as if the terms
of such addendum were a part of this Agreement as originally exe,cuted. The
performance of services pursuant to an addendum shall be subject to the terms and
conditions of this Agreement except where the addendum provides to the contrary, in
which case the terms and conditions of any such addendum shall control. In all other
respects, any addendum shall supplement and be construed in accordance with the terms
and conditions of this Agreement.
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3. Performance of Additional Services Prior to Execution of an Addendum.
The parties hereby agree that situations may arise in which services other than those
described on Exhibit "A" are desired by the City and the time period for 1the completion
of such services makes the execution of addendum impractical prior to the
commencement of the Consultant's performance of the requested slervices. The
Consultant hereby agrees that it shall perform such services upon the oral request of an
authorized representative of the City pending execution of an addendum, at a rate of
compensation to be agreed to in connection therewith. The invoice pro(~edure for any
such additional services shall be as described in Section 7 of this Agreement.
4. Consultant's Representations.
The Consultant hereby represents and warrants that he has all necessary licenses and
certifications to perform the services provided for herein, and is qualified to perform such
services.
5. City's Resvonsibilities.
The City shall do the following in a timely manner so as not to delay the services of the
Consultant:
a. Designate in writing a person to act as the City's representative with respect to the
services. The City's designee shall have complete authority to transmit
instructions, receive information, interpret and define the City's policies and
decisions with respect to the services.
b. Furnish the Consultant with all information, criteria, objectives, schedules and
standards for the project and the services provided for herein.
c. Arrange for access to the property or facilities as required for the Consultant to
perform the services provided for herein.
d. Examine and evaluate all studies, reports, memoranda, plans, sketches, and other
documents prepared by the Consultant and render decisions regarding such
documents in a timely manner to prevent delay of the services.
6. Acceptable Standards.
The Consultant shall be responsible to provide, in connection with the services
contemplated in this Agreement, work product and services of a quality and professional
standard acceptable to the City.
7. Compensation.
As compensation for the Consultant's performance of the services provided for herein,
the City shall pay the Consultant the fees and costs specified on Exhibit '''A'' attached
hereto and made a part hereof (or as specified in an addendum). The Consultant shall
submit monthly to the City an invoice or statement of time spent on tasks included in the
scope of work provided herein, and the City shall process the invoice or statement in the
next billing/claim cycle following receipt of the invoice or statement, and shall remit
payment to the Consultant thereafter in the normal course, subject to any Gonditions or
provisions in this Agreement or addendum.
8. Time for Performance and Term of Agreement.
The Consultant shall perform the services provided for herein in accordance with the
direction and scheduling provided on Exhibit "A" attached hereto and incorporated
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herein by this reference, unless otherwise agreed to in writing by the parties. The Term
of this Agreement shall commence on the date hereof or on the --L.!t..' day of
m~ nJ-.. , 200 ", and shall terminate upon completion of the
performance of the scope of work provided herein, according to the schedule provided on
Exhibit "A" attached hereto, unless otherwise agreed to in writing by the parties.
9. Ownership and Use of Documents.
All documents, reports, memoranda, diagrams, sketches, plans, surveys, design
calculations, working drawings and any other materials created or otherwise prepared by
the Consultant as part of his performance of this Agreement (the "Work Products") shall
be owned by and become the property of the City, and may be used by the City for any
purpose beneficial to the City.
10. Records Inspection and Audit.
All compensation payments shall be subject to the adjustments for any amounts found
upon audit or otherwise to have been improperly invoiced, and all records and books of
accounts pertaining to any work performed under this Agreement shall be subject to
inspection and audit by the City for a period of up to three (3) years ii-om the final
payment for work performed under this Agreement.
11. Continuation of Performance.
In the event that any dispute or conflict arises between the parties while this Contract is in
effect, the Consultant agrees that, notwithstanding such dispute or conflict, the Consultant
shall continue to make a good faith effort to cooperate and continue work toward
successful completion of assigned duties and responsibilities.
12. Administration of Agreement.
This Agreement shall be administered by, on behalf of the Consultant, and by the Mayor
of the City, or designee, on behalf of the City. Any written notices required by the terms
of this Agreement shall be served on or mailed to the following addresses:
Citv of Auburn
Auburn City Hall
25 West Main
Auburn, W A 98001-4998
(253) 931-3000 FAX (253) 931-3053
Consultant
FCS Group
Attn: Peter Moy, Principal
8201 164th Ave NE Suite 300
Redmond, W A 98052
(425) 867-1802 x228
FAX (425) 867-1973
13. Notices.
All notices or communications permitted or required to be given under this Agreement
shall be in writing and shall be deemed to have been duly given if delivered in person or
deposited in the United States mail, postage prepaid, for mailing by certified mail, return
receipt requested, and addressed, if to a party of this Agreement, to the address for the
party set forth above, or if to a person not a party to this Agreement, to the address
designated by a party to this Agreement in the foregoing manner.
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Any party may change his, her or its address by giving notice in writing, stating his, her
or its new address, to any other party, all pursuant to the procedure set forth in this
section of the Agreement.
14. Insurance.
The Consultant shall be responsible for maintaining, during the term of this Agreement
and at its sole cost and expense, the types of insurance coverages and in the amounts
described below. The Consultant shall furnish evidence, satisfactory to the City, of all
such policies. During the term hereof, the Consultant shall take out and maintain in full
force and effect the following insurance policies:
a. Comprehensive public liability insurance, including automobile and property damage,
insuring the City and the Consultant against loss or liability for damages for personal
injury, death or property damage arising out of or in connection with the performance
by the Consultant of its obligations hereunder, with minimum liability limits of
$1,000,000.00 combined single limit for personal injury, death or prope:rty damage in
anyone occurrence.
b. Such workmen's compensation and other similar insurance as may be required by
law.
c. Professional liability insurance with minimum liability limits of $1 ,000,000.
15. Indemnification.
The Consultant shall indemnify and hold harmless the City and its officers, agents and
employees, or any of them from any and all claims, actions, suits, liability, loss, costs,
expenses, and damages of any nature whatsoever, by any reason of or arising out of the
negligent act or omission of the Consultant, its officers, agents, employees, or any of
them relating to or arising out of the performance of this Agreement. If a fiinal judgment
is rendered against the City, its officers, agents, employees and/or any of them, or jointly
against the City and the Consultant and their respective officers, agents and employees,
or any of them, the Consultant shall be required to indemnify and defend only in
proportion to the negligence or omissions of the Consultant. These indemniity provisions
shall not require the Consultant to defend or indemnify the City against any action based
solely on the actions or alleged negligence of the City.
16. Assignment.
Neither party to this Agreement shall assign any right or obligation hereunde:r in whole or
in part, without the prior written consent of the other party hereto. No assignment or
transfer of any interest under this Agreement shall be deemed to release the assignor from
any liability or obligation under this Agreement, or to cause any such liability or
obligation to be reduced to a secondary liability or obligation.
17. Amendment. Modification or Waiver.
No amendment, modification or waiver of any condition, provision or term of this
Agreement shall be valid or of any effect unless made in writing, signed by the party or
parties to be bound, or such party's or parties' duly authorized representative(s) and
specifying with particularity the nature and extent of such amendment, modification or
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waiver. Any waiver by any party of any default of the other party shall not effect or
impair any right arising from any subsequent default.
Nothing herein shall limit the remedies or rights of the parties hereto under and pursuant
to this Agreement.
18. Termination and Suspension.
Either party may terminate this Agreement upon written notice to the other party if the
other party fails substantially to perform in accordance with the terms of this Agreement
through no fault of the party terminating the Agreement.
The City may terminate this Agreement upon not less than seven (7) days written notice
to the Consultant if the services provided for herein are no longer needed from the
Consultant.
If this Agreement is terminated through no fault of the Consultant, the Consultant shall be
compensated for services performed prior to termination in accordance with the rate of
compensation provided in Exhibit "A" hereo[
19. Parties in Interest.
This Agreement shall be binding upon, and the benefits and obligations provided for
herein shall inure to and bind, the parties hereto and their respective slllccessors and
assigns, provided that this section shall not be deemed to permit any transfer or
assignment otherwise prohibited by this Agreement. This Agreement is for the exclusive
benefit of the parties hereto and it does not create a contractual relationship with or exist
for the benefit of any third party, including contractors, sub-contractors and their sureties.
20. Costs to Prevailing Party.
In the event of such litigation or other legal action, to enforce any rights, n:sponsibilities
or obligations under this Agreement, the prevailing parties shall be entitled to receive its
reasonable costs and attorney's fees.
21. Applicable Law.
This Agreement and the rights of the parties hereunder shall be gov€:rned by the
interpreted in accordance with the laws of the State of Washington and venue for any
action hereunder shall be in of the county in Washington State in which the property or
project is located, and if not site specific, then in King County, Washington; provided,
however, that it is agreed and understood that any applicable statute of limitation shall
commence no later than the substantial completion by the Consultant of the services.
22. Captions. Headings and Titles.
All captions, headings or titles in the paragraphs or sections of this Agreement are
inserted for convenience of reference only and shall not constitute a part of this
Agreement or act as a limitation of the scope of the particular paragraph or sections to
which they apply. As used herein, where appropriate, the singular shall include the plural
and vice versa and masculine, feminine and neuter expressions shall be interchangeable.
Interpretation or construction of this Agreement shall not be affected by any
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determination as to who is the drafter of this Agreement, this Agreement having been
drafted by mutual agreement of the parties.
23. Severable Provisions.
Each provision of this Agreement is intended to be severable. If any provision hereof is
illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect
the validity of the remainder of this Agreement.
24. Entire Agreement.
This Agreement contains the entire understanding of the parties hereto in respect to the
transactions contemplated hereby and supersedes all prior agreements and lmderstandings
between the parties with respect to such subject matter.
25. Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be one
and the same Agreement and shall become effective when one or more cOUlnterparts have
been signed by each of the parties and delivered to the other party.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
effective the day and year first set forth above.
CQYBU~
L~
\
Peter B. Lewis, Mayor
CONSULTANT
-
..--?
t~.~~
N.ame: "R:>A-~r "-V
TItle: ~n"~l'~~
Attest:
~~
Danielle E. Daskam City Clerk
Page 6 of6
AMBULANCE CoST OF SERVICE AND RATE STUDY
CTIY OF AUBURN, WASHINGTON
EXHIBIT A
Scope of Work and Task Plan
The City of Auburn is considering establishing an ambulance utility, and as part of establishing
an ambulance utility, the City needs to conduct a cost of service study to identify lhe total costs
necessary to regulate, operate, and maintain the ambulance utility. FCS Group has developed the
following task plan to conduct a cost of service study, identify the availability and demand costs,
establish customer classes and rates, and analyze the rate impact on the various customer classes.
TASK 1 - KICK-OFF MEETING
The consultant team will conduct a project kick-off meeting with Finance staff and other City
staff members who will serve as the primary contacts with FCS Group for assisting and
providing infonnation 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, project schedule, and
discussion of other coordination issues. A written data request will be provided to the
appropriate City staff 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 infonnation on the Ciity's costs to
provide its emergency medical services and ambulance services. We will review tht: 2005 actual
costs and the 2006 budgeted costs as well as 2005 call and response data. 2005 and 2006
revenue data will also be reviewed.
TASK 3 - DEVELOP A COST OF SERVICE FRAMEWORK AND ESTABLISH THE COST
OF SERVICE
After reviewing the City's fire department and ambulance costs, we will develop a cost of
service framework consistent with 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. As part of the process we will develop a cost of service model
that can be used to allocate the costs between fire and emergency medical services ~md between
availability and demand costs. Availability costs include dispatch, labor, training, equipment,
patient care supplies and maintenance of equipment. Demand costs include costs mlated to the
frequency of calls, distances from hospitals, and other costs related to responding to a call. We
will also develop a methodology for establishing transport fees.
TASK 4 - 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. Based on an analysis of the City's service data, potential customer classes
and allocation methods will be identified as well as alternative rate structures. In developing
customer classes. allocation methods, and rate structures, utility rate setting concepts will be used
whenever they are applicable to EMS and ambulance services.
.::> FCS GROUP
Page 1
AMBULANCE COST OF SERVICE AND RATE STUDY
CTIY OF AUBURN, WASHINGTON
TASKS - CALCULATE AVAILABILITY AND DEMAND RATES FOR EACH
CUSTOMER CLASS
After identifying customer classes, allocation methods, and rate structures, the Ci~y's identified
revenue requirements for the availability and demand services will be calculated for the potential
customer classes. Because the law limits. the amount of funding from ambulance revenues, we
will analyze the City's current funding of ambulance services to determine the amount of
revenue that can be raised by ambulance fees. Once the ambulance revenue:s have been
determined and the costs have been allocated, rates consistent with RCW 35.21.766 rate policies
will be calculated.
TASK 6 - PREP ARE 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 comments on the draft report and will make changes, as appropriate, befi)re issuing a
final report.
TASK 7 - MAKE PRESENTATIONS
FCS Group will attend and prepare one presentation for the City that may include City staff, City
Council Committees, and/or the full City Council.
Budget Estimate
The FCS Group consultants primarily assigned to this study are Peter Moy, Principal, and Kyle
Nelson, Analyst. The table below summarizes our estimated cost to perform the proposed task
plan. No travel or other incidental and ordinary expenses (e.g. copying, phone, faxes, postage,
etc) will be billed.
Task
Effective Hourly Billing R4tes:
Conl.ltaot Houn
FeSO
Principal Consultants
Mo Nelson
$160 $95
Eldlnated Bud
Task I: Kick-off meeting
Task 2: Review & analyze Fire Dept & IDlbulance costs & workload data
Task 3: Develop cost of secvice framework & establish !be COlt of service
Task 4: Identify potetniaI custome classes and cost al1ocation methods
Task S: Calculate availability BDd demand Jates for each customer class
Task 6: Prepare a report
I~!c7:mMa!l:~~~~..m._._.____........
Total Eatimated Labor Bud et
4
8
12
4
8
16
.. ...._._-~._.._- .............
60
4
16
48
8
16
4
4
100
o
o
o
o
o
2
4
6
8
24
60
12
24
22
16
166
$ 1.020
$ 2.800
$ 6,480
$ 1.400
$ 2.800
$ 3.040
.~... 1.860
$ 19400
TOTAL PROJECT BUDGET
$19,400
.::) FCS GROUP
Page 2
Exhibit A
Scope of Services
Water, Sewer, & Storm Water Preliminary Baseline Requirement Analyses
Task is Data Collection / Validation
Collect, review, and analyze data needed for the preliminary analysis. A list of data needs for each
utility is provided below:
¦ 2007 financial statements
¦ 2oo8 year-end estimated revenues (rate revenues, SDC revenues, miscellaneous)
¦ 2008 year-end estimated expenses (budget line item detail if available)
¦ 2008 year-end estimated cash balances (operating cash, capital cash, debt reserve
cash). Note: capital cash balances need to exclude any monies earmarked to pay for
capital projects currently underway but not yet paid for in 2008.
¦ 2009 operating budget (line item detail)
¦ 2oo9 and 2010 list of capital projects (additional years if desired)
¦ Existing debt service schedules
¦ Near-term customer growth percentage (2008 - 2010)
Task 2: Two-Year Capital Funding Analysis
identify and evaluate capital resources to fund the capital projects identified by the City for years
20o9 and 201o. Develop a capital funding strategy for each utility based on different approaches
to funding capital needs, including alternative levels of annual cash contributions from rates, use
of cash reserves, appropriate and /or necessary levels of debt financing, resources from new
development, etc. Work with the City to perform "what if' scenarios for varying capital costs,
scheduling, and/or funding sources.
Task 3: Baseline Revenue Requirement Forecast
Prepare a baseline revenue requirement analysis for each utility for the two-year period 20o9 and
201o. This analysis will assume costs under existing operations and will utilize the 20o9 budget
at the starting point. Escalation factors will be applied to forecast 2o1o expenditures. It is not
anticipated that potential new purchased water costs (water utility), new NPDES permit
requirements (Storm Water) or other incremental costs to the current budget will be incorporated
into this baseline analysis unless information is readily available.
Incorporate existing debt, new debt and any other financial obligations of the utilities over the
two-year period. Compare annual financial needs against available utility user rate and
miscellaneous operating revenues, identifying any projected shortfalls over the two-year period.
Calculate annual and overall adjustments needed in utility user rate levels to recover identified
costs. Alternative scenarios will be run to reflect the "what if' capital funding scenarios and/or
other approaches to smooth rate impacts to the extent practical over the two-year period.
Task 4: Documentation & Meetings
Prepare brief materials summarizing the findings and recommendations. Participate in a
conference call with City staff to review findings.
Exhibit B
Fee Schedule
Water, Sewer, & Storm Water Preliminary Baseline Analysis
Consultant Hours
Technical Total
Principal Manager Admin. Estiamted Labor
Task Johnson Chaw Support Hours Budget
Hourly Billing Rates: $195 $150 $60
Task 1 - Data Collection / Validation 1 4 5 $795
Task 2 - Two-Year Capital Funding Analysis 3 30 33 $5,085
Task 3 - Baseline Revenue Requirement Forecast 6 42 48 $7,470
Task 4- Documentation & Meetings 4 4 1 9 $1 440
Total 14 80 1 95 $14-790