HomeMy WebLinkAboutITEM VIII-B-9CITY F ?T .LV AGENDA BILL APPROVAL FORM
WASHINGTON
Agenda Subject: Date:
Resolution No. 4344 Aril 14, 2008
Department: Attachments : Budget Impact:
Finance Professional Services Contract,
Exhibit "A", and Exhibit "B"
Administrative Recommendation:.
City Council to adopt Resolution No. 4344
-
Background Summary:
Resolution No. 4344 allows the Mayor and City Clerk to enter into an agreement with FCS Group to
conduct a revenue and cost of service fee study for building, planning, and development activities within
the City.
N0421-1
F4.3
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
? Arts Commission COUNCIL COMMITTEES: ? Building ? M&O
? Airport ® Finance ? Cemetery ? Mayor
? Hearing Examiner ® Municipal Serv. ? Finance ? Parks
? Human Services ® Planning & CD ? Fire ? Planning
? Park Board ®Public Works ? Legal ? Police
? Planning Comm. ? Other ? Public Works ? Human Resources
? Information Services
Action:
Committee Approval: ?Yes ?No
Council Approval: ?Yes ?No Call for Public Hearing
Referred to Until __
Tabled Until
Councilmember: Backus Staff: Coleman
-Meeting Date: April 21, 2008 Item Number: VIII.B.9
A BURN * MORE THAN YOU IMAGINED
RESOLUTION NO. 4 3 4 4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT FOR SERVICES
BETWEEN THE CITY OF AUBURN AND FCS GROUP TO
CONDUCT A FEE STUDY FOR DEVELOPMENT ACTIVITIES
WITHIN THE CITY
WHEREAS, the City is engaged or readying itself to conduct a revenue
and cost of service fee study for building, planning, and development activities
within the City, and is in the need of services of individuals, employees, or firms
for consultation work on said projects; and
WHEREAS, the City desires to retain the Consultant to provide certain
services in connection with the City's work on said project; and
WHEREAS, the City has satisfied itself that the Consultant has the
requisite knowledge, experience and ability to perform the tasks set forth in the
attached agreement.
THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A
REGULAR MEETING, DULY ASSEMBLED, HEREWITH RESOLVES AS
FOLLOWS:
Section 1. The Mayor and City Clerk of the City of Auburn are hereby
authorized to execute an Agreement between the City of Auburn and FCS
Group, which agreement shall be in substantial conformity with the Agreement a
copy of which is attached hereto, designated as Exhibit "A" and incorporated
herein by this reference.
Resolution No. 4344
April 9, 2008
Page 1 of 2
Section 2. The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directives of this
legislation.
Section 3. This Resolution shall take effect and be in full force and
effect upon passage and signature hereon.
DATED and SIGNED this day of April, 2008.
CITY OF AUBURN
PETER B. LEWIS
MAYOR
ATTEST:
Danielle E. Daskam
APPROVED AS TO FORM:
Daniel B. Heid,
City Attorney
Resolution No. 4344
April 9, 2008
Page 2 of 2
CITY OF AUBURN AGREEMENT
FOR CONSULTING SERVICES
THIS AGREEMENT made and entered into on this day of ,
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 engaged in or readying itself to conduct a revenue and cost of
service fee study for building, planning, and development activities within the City, and is in
need of services of individuals, employees or firms for consultation work on said project; and,
WHEREAS, the City desires to retain the Consultant to provide certain 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 performance 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 respective 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 executed. 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.
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 the completion
of such services makes the execution of addendum impractical prior to the
commencement of the Consultant's performance of the requested services. 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 procedure 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 Responsibilities.
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 "B" attached
hereto and made a part hereof (or as specified in an addendum). The Consultant shall
submit 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 conditions or provisions
in this Agreement or addendum.
Page 2 of 10
8. Time for Performance and Term of Agreement.
The Term of this Agreement shall commence on the date hereof or on the 21st day of
April, 2008, and shall terminate on the 31 st day of December, 2008, or upon completion
of the performance as provided in Exhibit "B", 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 from 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:
City of Auburn
Auburn City Hall
25 West Main
Auburn, WA 98001-4998
(253) 931-3000 FAX (253) 931-3053
Consultant
FCS Group
7525 166th Ace NE, Suite D-215
Redmond, WA 98052
(425) 867-1802 FAX (425) 867-1937
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.
Page 3 of 10
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 property damage in
any one 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 final 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 satisfy the same to the extent that such judgment was
due to the Consultant's negligent acts or omissions.
16. Assignment.
Neither party to this Agreement shall assign any right or obligation hereunder 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
Page 4 of 10
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 "B" hereof.
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 successors 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, responsibilities
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 governed 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
Page 5of10
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 understandings
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 counterparts 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.
CITY OF AUBURN
CONSULTANT
Peter B. Lewis, Mayor Name:
Title:
Attest:
Name:
Danielle E. Daskam City Clerk Title:
Approved as to form:
Daniel B. Heid, City Attorney
Page 6of10
STATE OF WASHINGTON ) .
ss.
COUNTY OF )
ON THIS day of , 200 , before me, personally
appeared and , to
me known to be the and
of the Contractor, the party(ies) who executed - the corporation/company that executed the within and
foregoing instrument, and acknowledged said instrument to be his/her/their the free and voluntary act and
deed of said corporation/company, for the uses and purposes therein mentioned, and on oath stated that
they were authorized to execute said instrument.
GIVEN under my hand and official seal this day of , 200.
NOTARY PUBLIC in
Washington, residing at
My Commission Expires:
and for the State of
Page 7 of 10
Exhibit "A"
Scope of Work
City of Auburn Revenue and Cost of Service Fee Study
TASK I - DATA COLLECTION
1.1 Conduct Preliminary Kick-Off electing
This meeting should be conducted with the departmental and divisional managers that will be involved or
affected by the study. The meeting will introduce the project team, study objectives, methodology,
schedule, and City and Consultant team roles. The consultant will also review the preliminary data needs
list which will include such items as budget data, actual fee revenue and associated expenditures, permit
volumes, etc.
1.2 Identify Current and Potential Development Fee Activities
The current fee-generating activities will be identified, and we will work with City staff to identify
additional services where cost-based fees may be appropriate but are not currently charged. In this initial
sub-task, the consultant will determine the appropriate level of detail in terms of data generation and
modeling needed for each fee generating area.
1.3 Review Organization and Corresponding, Data
The consultant will review the functions conducted by City employees relating to development, and as
part of this effort, we will review the City's budget, organizational charts, and fund structure to identify
each Department's functions, responsibilities, and finances.
1.4 Collect Detailed Tinrc Data
The most important data element required for the study is estimates of how time is spent. If the City
already collects data on the time spent on various development fee activities, we will determine if the data
is sufficient for the cost of service study, and if not, we will then collect and validate self-reported time
estimates. The needed estimates will be collected using a structured data collection form. We will guide
City staff through completion of the form, which will identify direct time estimates for fee-generating
activities and for the related indirect activities of the departments, such as public information and
assistance. Summaries of the time estimates will be reviewed with management to ensure that they are
consistent with the practices and organization of the departments. Salary and benefit costs will be required
for all positions involved in all activities. Data and data analysis will be well organized for ease of use by
the City in future updates to the City fee structure.
1.5 Cross Deference Cost and Revenue Data, Fee Schedules, and Fee Statistics
We will inventory the fee schedules related to development and cross reference them with the revenue
data categories, volume statistics, and any costs specific to individual activities to ensure that the cost of
service analysis is structured to reflect a reasonable level of detail for data reporting and updating.
Page 8 of 10
1.6 Data Collection Follow-up[Refinement
Based on the results of the prior tasks, supplemental data needs will need to be identified and processes
defined for generating any additional information.
TASK II - CALCULATE THE FULL COST OF SERVICES
11.1 Calculate Direct Costs of Direct Services
Using the time and salary data, a spreadsheet model will be created to calculate the direct costs of the fee-
generating services. These costs may include both work on specific activities and efforts associated with
related general services, such as public information provided at the Permit Center and elsewhere. This
analysis will also include an allocation of non-salary costs associated with fee-generating services.
11.2 Calculate Indirect Costs
Indirect costs, salary and non-salary expenses associated with support functions within the Departments
will be identified and summarized to produce separate indirect cost layers for each Department. Related
administrative and clerical costs will be quantified as indirect support costs.
11.3 Allocate Cite Overhead Costs
Analyze and assign costs of political decisions which relate to overhead costs including, but not limited
to, central administration fees such as payroll processing, Human Resources, Risk Management, Legal
and Information Services. Allocate departmental and the City-wide share of overhead costs to
development services activities.
11.4 Calculate the Hull Cost of Service
To calculate the full cost of service, the consultant will combine the results of the previous sub-tasks and
will identify the cost both as total dollars and dollars per direct hour. The full cost layers will include
some or all of the following elements:
• City-wide Indirect Costs
• Departmental Administrative Costs
• Direct Service Provision
• Related Department Activities, such as:
- Public Information
- Code Enforcement
• Indirect activities that are allocated between fee-generating and non-fee generating work, such as
Vacation/Sick Leave/Holiday and General Training.
• Associated non-labor costs, such as supplies, rent, and telephone.
TASK III - ASSESSMENT OF EXISTING STRUCTURE
Provide an assessment of the extent to which the costs allocated to development fees are appropriate and
or necessary. We will compare the costs charged, activities performed, and code requirements with five
other cities and/or counties. We will draw conclusions based on this data to the extent feasible, and our
professional experience and judgment.
TASK IV - FEE EVALUATION
IVA Compare Full Cost Results to Revenues Collected
Page 9 of 10
We will prepare a comparison of the full costs of fee-generating services versus the projected revenues for
the current 2008 budget year and actual revenues in 2007. A comparison of the workload in these
periods will also be done to validate results.
IV.2 Formulate Cost Recovery Objectives with City Staff and Management
We will meet with the City Council and City staff/management to determine if full costs should be
recovered for all fees or whether there are certain costs or activities where less than full cost recovery is
warranted. The consultant should characterize this sub-task as the public versus private benefit analysis.
Recognizing that costs not recovered from fees are paid for from other revenues, such as taxes, less than
full cost recovery may be justifiable due to the benefit the service provides to the public at-large, based on
City policy, or based on the practical consideration of whether the market can bear the full cost fee.
IV.3 Project Fees/Revenues
Based on the various fee recovery objectives and subsidy policies identified in the prior subtask, we will
recalculate existing user fees. We will also calculate new fees for services identified in Task 1 as not
currently generating fee revenue and will estimate the impact on revenues from these new fees or fee
changes.
TASK V - PROGRESS REPORTS/UPDATES/MEETINGS/ STUDY
REPORT
V.I Progress lleportsi ? ?r::/Mc:etings
A total of four meetings with the City Council and/or City staff/management will be held. The first
meeting to discuss the scope and timeline of the project. Following TASK I, TASK II and TASK III the
Consultant will meet with and provide the City Council and/or City staff/management with a progress
report and update on the findings of those three tasks. This update will be an interactive session with the
staff and the City Council at its Finance Committee meeting appropriate to the timeline of the project and
provide direction before proceeding to TASK IV Fee Evaluation. The third meeting will be to discuss the
preliminary report and recommendations. The fourth meeting will be to present the final study results. If
additional meetings are desired, we will charge $800 for each meeting.
V.2 Draft and Final Report
Study findings, conclusions, and recommendations will be submitted as a draft report for City review and
input, and we will meet with the City staff to discuss their comments. Revisions will be reflected, as
appropriate, to incorporate warranted changes suggested by the City, and 10 copies of the final report will
be produced with a master electronic copy. The details of the analysis will be included as a technical
appendix.
TASK VI - PRESENTATION OF RESULTS
In addition to the study report in Task V, the consultant will prepare presentations for the City Council
and/or Finance Committee that will address the findings of the study, methodologies employed, cost
recovery objectives targeted, proposed fees, and implementation strategies developed.
Page 10 of 10
Exhibit "B"
Consultant Hours Estimated Budget
Principal Consultant Admin. Total Labor
Tasks Moy Rogers Support Hours Budget
Effective Hourly Billing Rates: $195 5140 $60
Comprehensive Fee Studv
Task 1: Data Collection 28 48 2 78 12.2""
1.1 Conduct Preliminary Kick-Off Meeting 6 4 2 12 $1,850
1.2 Identify Current & Potential Development Fees 4 4 8 $1,340
1.3 Review Organization and Corresponiding Data 2 8 10 $1,510
1.4 Collect Detailed Time Data 12 24 36 $5,700
1.5 Cross Reference Cost & Revenue Data eta 4 8 12 $1,900
Task II: Calculate the Full Cost of Services 18 36 0 54 $8,550
11. 1 Calculate Direct Costs of Direct Services 4 16 20 $3,020
11.2 Calculate Indirect Costs 4 8 12 $1,900
11.3 Allocate City Overhead Costs 4 4 8 $1,340
114 Calculate the Full Cost of Service 6 8 14 $2290
Task III: Assessment of Existing Structure 2 24 0 26 $3,750
Task IV: Fee Evaluation 14 18 0 32 $5,250
IVA Compare Full Cost Results to Revenues Collected 4 8 12 $1,900
IV.2 Formulate Cost Recovery Objectives with City Staff & Mgt. 8 4 12 $2,120
IV.3 Project Fees/Revenues 2 6 8 $1,230
Task V: Progress Reports/Updates/Meetings/ Study Report 20 44 8 72 $10,540
V.I Progress Reports, t_ plates%t leetings 12 12 1_4 54.020
V.2 Draft & Final Report 8 _ 8 48 56,520
Task VI: Presentation of Results 4 8 4 16 $2,140
Grand Total Estimated Labor Budget 86 178 14 278 $42,530
Total Project Budget $42,530