HomeMy WebLinkAboutFinancial Consulting Solutions Group Inc (FCS Group) AG-C-337 - CLOSED 12/30/2010
CITY OF AUBURN AGREEMENT
FOR CONSULTING SERVICES
AG-C-337
THIS AGREEMENT made and entered into on this -/1 day of ?`lr
2008, by and between the City of Auburn, a municipal corporation of the State of Washington,
hereinafter referred to as "City" and Financial Consulting Solutions Group, Inc. (FCS GROUP),
hereinafter referred to as the "Consultant."
WITNESSETH:
WHEREAS, the City is engaged in or readying itself to conduct a utility rate study for the
storm drainage, water, and sewer utilities 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.
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Consultant Agreement AG-C-337
August 26, 2008
Page I of 14
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.
Consultant Agreement AG-C-337
August 26, 2008
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8. Time for Performance and Term of Agreement.
The Term of this Agreement shall commence on the date hereof or on the 1 st day of
September, 2008, and shall terminate on the 31st day of December, 2009, or upon
completion of the performance as provided in Exhibit "A", 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 Karyn Johnson, 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
Attn: Dan Repp, P.E.
Auburn City Hall
25 West Main
Auburn, WA 98001-4998
253-931-3000; FAX 253-931-3053
Consultant
Attn: Karyn Johnson, Principal
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.
Consultant Agreement AG-C-337
August 26, 2008
Page 3 of 14
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. Assi agent.
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
Consultant Agreement AG-C-337
August 26, 2008
Page 4 of 14
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 determination as to who is the
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Consultant Agreement AG-C-337
August 26, 2008
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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.
CONSULTANT
CITY OF AUBURN
ter Lewis, Mayor e:
i le:
Attest:
Danie le E. Daskam City Clerk
Name:
Title:
Consultant Agreement AG-C-337
August 26, 2008
Page 6 of 14
STATE OF WASHINGTON
COUNTY OF
ss.
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 and for the State of
Washington, residing at
My Commission Expires:
Consultant Agreement AG-C-337
August 26, 2008
Page 7 of 14
Exhibit A
Scope of Services
City of Auburn Utility Rate Study
Task is Data Collection / Validation
1.1 Prepare a written request for data / information needed for the study. The list will be
provided to the City in advance of the kick-off meeting.
1.2 Review, analyze, and validate the data. Identify data limitations and/or issues for further
discussion with City staff.
1.3 Prepare any necessary written requests for follow-up information. Coordinate via
telephone and email with City staff on data acquired in this initial process.
Task Deliverables:
¦ Written data request list
• Additional data requests (as necessary)
Task 2: Fiscal Policy / Water Supply Evaluation
2.1 Review existing utility financial policies and identify potential new fiscal policies for
evaluation.
2.2 Conduct an evaluation of existing policies and potential new policies to include reserve
management (e.g., operating reserves, capital-related reserves, debt reserves, other);
system reinvestment funding levels; debt coverage levels; and debt management
strategies.
2.3 Document the need for reserves / fiscal policies, the basis for minimum thresholds, and
the financial and rate impacts for establishing any new or revised policies for each utility.
2.4 Integrate recommended fiscal policies into the technical analyses.
2.5 Indentify and evaluate alternative strategies for recovering upfront purchased water costs
from existing and future customers. The City plans to buy water from an adjacent
purveyor (Tacoma or Kent), with an estimated upfront cost of about $3.2 million in
system development charges that will need to be debt financed. We will work with the City
to identify and evaluate alternative strategies to provide the upfront funding, make debt
payments, meet coverage requirements, etc., in the near term, while shifting an
appropriate share of the cost burden back to new development as growth occurs. We will
provide a "white paper" outlining feasible options, methods of recovery, and impacts to
ratepayers and new development.
Task Deliverables:
¦ Draft & final fiscal policy recommendations
¦ White paper for purchased water cost recovery
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Consultant Agreement AG-C-337
August 26, 2008
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Task 3: Capital Connection Charges
3.1 Review and evaluate the current connection charge methodology and structure for each
utility. Recommend alternatives as warranted to promote revenue adequacy and customer
equity, as well as adherence to state. and industry guidelines.
3.2 Based on the results of Subtask 3.1 above, update capital connection charges for each
utility. The recommended methodology is likely to incorporate current and planned
system investment and system capacity:
¦ Determine the existing cost basis to be incorporated into the charges. For each
utility, this includes review and evaluation of existing system plant-in-service,
contributed assets, interest accumulation, and other adjustments;
¦ Determine the future cost basis to be incorporated into the charges. This includes
review and evaluation of each utility's capital improvement program (CIP) as
identified in system planning documents, and working with the City's consulting
engineers to apportion capital needs to existing customers and to future customers
for each utility system;
¦ Evaluate customer growth and determine system capacity that the existing and
future planned system infrastructure can serve; and
¦ Calculate the maximum allowable capital connection charge per customer equivalent
and develop a schedule of connection charges for each utility.
3.3 Calculate forecasted revenues from the charges and integrate into the capital funding
analysis (Task 4) to update revenue sources available to help fund capital needs.
Task Deliverables:
¦ Schedule of connection charges for each utility (up to 2 scenarios for each utility)
¦ Annual connection charge revenue forecast for each utility
Task 4: Capital Financial Planning Analysis
4.1 Develop a spreadsheet-based analysis to analyze the ability of each utility to fund the
capital needs identified in the CIPs. Consider funding sources from current revenue
streams (e.g., rates, connection charges, and dedicated cash reserves) and potential
revenue streams that are consistent with City policy and preference (e.g., increased rates
and charges as warranted, debt financing, acquisition of special grants or loans,
assessments, or special funding structures). Working from the capital projects list,
incorporate annual capital projects and associated costs for a six to ten-year study period.
Forecast future costs using inflationary factors.
4.2 Compare forecasted improvements against forecasted funding sources available, as
derived from current rate and charge levels, cash reserves, and other identified sources for
funding capital projects. 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.
Task Deliverables:
¦ Capital funding strategy for each utility (up to 2 scenarios for each utility)
¦ Rate impacts (rate funding, debt service 1 coverage)
Consultant Agreement AG-C-337
August 26, 2008
Page 9 of 14
Task 5: Revenue Requirement Forecast
5.1 Prepare a spreadsheet-based financial planning module for each utility to forecast and
analyze the financial performance of each utility over the study period. Utility budgets will
be used as the baseline for forecasting future costs and revenues. The chief output of this
task is a "revenue requirement" that defines the full-cost need from user rates, after other
revenue sources have been accounted for in meeting the financial obligations of the utility.
5.2 Determine appropriate escalation factors to be used to account for future year cost
increases in the various budget line times. Several different factors will be determined to
adequately capture escalation due to general inflation, salaries & benefits adjustments,
extraordinary cost escalation for power, fuel, and other commodities increasing at a
different rate than general inflation. Annual escalation for new purchased water costs will
be dependent upon the final selected source (Tacoma or Kent), and will be estimated
based on the best available information provided to the City at the time of the study.
5.3 Incorporate incremental operating costs not reflected in the current utility budgets. This
will include such things as additional staffing requirements, impacts resulting from
operational cost additions or savings caused by capital projects, known or anticipated
changes to meet regulatory requirements, additional equipment needs (not included in
the CIP), costs of new or enhanced program improvements / initiatives, and purchased
water costs. We will work with the City to obtain a listing of these incremental cost
categories and associated additional costs. In addition, the storm water analysis will
include incorporation of the cost of NPDES permit compliance. Alternative scenarios will
be developed to evaluate the sensitivity of these cost changes to the overall revenue needs
assessment for each utility.
5.4 Forecast annual operating revenues over the study period including rate revenue adjusted
for customer growth, miscellaneous fees and charges, and other miscellaneous revenues.
5.5 Integrate cash and coverage requirements from recommended fiscal policies (Task 2);
debt-related costs from purchased water cost strategies (Task 2) and capital financing
strategies (Task 4).
5.6 Compare annual financial needs against available utility user rate and miscellaneous
operating revenues, identifying any projected shortfalls over the forecast period. Calculate
annual and overall adjustments needed in utility user rate levels to recover the full cost of
service over the study period.
5.7 Develop rate revenue strategies that meet financial obligations over the near-and long-
term planning horizon and provide smooth impact to utility customers, to the extent
practical.
Task Deliverables:
¦ Forecast of annual revenues / expenses over the study period for each utility
¦ Schedule of annual rate increases for each utility (up to 4 scenarios for each utility)
Task 6: Cost of Service / Rate Structure Evaluation
6.1 Develop functional allocation of utility system assets and expenses. Detailed allocations
will be performed for the water and sewer utilities; this level of analysis will not be
required for the storm water utility:
Consultant Agreement AG-C-337
August 26, 2008
Page 10 of 14
¦ Classify plant investment by major categories (e.g., water: supply/treatment, storage,
distribution/ transmission, customer, hydrants, and general plant; sewer: customer
services, collection/ conveyance, and general plant);
¦ Assign categorized plant investment to functional cost components (water: customer,
base demand, peak demand, fire protection; sewer: customer, flow) using system
design criteria;
¦ Classify expense data by major and sub categories relating to the activities performed
in the operation of the systems; and
¦ Assign categorized expenses to functional cost components.
6.2 Distribute functional costs to customer classes:
¦ Analyze and summarize customer service and usage statistics by customer class
including meter size, average annual water usage, winter period water usage, and
peak summer period water usage for a recent 12-month period of detailed individual
customer billing histories. (To be provided electronically by the City, preferably in
Excel format). Several configurations of customer billing frequencies will be
developed to aide in the design of rate structures. For the storm water utility, this will
include number of accounts, equivalent service units, impervious surface area, or
other available measures);
¦ Perform a customer class analysis for each utility to determine the appropriate
grouping of customers for use in the cost allocation process and rate structure
design;
¦ Apply prevailing rates to the customer data set to determine whether the historical
information serves as a valid basis for calculating utility user rates that will generate
the correct amount of revenue. Depending on the initial outcome, this could include
follow up with City staff to determine potential reasons for any significant
discrepancies;
¦ Allocate classified costs to each customer class based on use of, and demand for, the
utility systems; and
¦ Derive class of service unit costs for each utility.
6.3 Develop alternative utility rate structures for each utility:
¦ Review and evaluate the current utility rate structures. Recommend rate
modifications reflective of cost-of-service findings and City policy objectives, as
appropriate. In particular, for the water utility, review the feasibility of designing
higher rates in the summer season to promote reduced energy costs in the summer;
¦ Evaluate and demonstrate the ability of the resulting utility rates to generate the
projected and required revenues by testing rates against composite system customer
demands;
¦ Identify revenues to be generated from fixed and volume-based charges;
¦ Prepare sample utility bills for each customer class, comparing existing rates and
proposed rate impacts; and
¦ Prepare a typical utility bill comparison for the residential class including a survey of
up to five (5) neighboring communities and the City's existing and proposed utility
rates (include Kent, Renton, and Sumner).
Consultant Agreement AG-C-337
August 26, 2008
Page 11 of 14
Task Deliverables:
¦ Identified costs of service for each customer class for each utility
¦ Rate structure alternatives & customer impacts (up to 2 alternatives structures for
each utility)
¦ Comparison of rates with other jurisdictions
Task 7: Miscellaneous Fees Review
7.1 Review existing utility miscellaneous fees and recommend potential additional fees to
recover unique utility costs that are not applicable to all customers on the systems (e.g.,
meter installation fees; turn on/turn off fees; plan review/inspection fees; and late fees).
7.2 Compile the list of identified fees and determine the key driver of costs to be recovered by
each fee, such as staff labor time, materials, or policy, in order to select the appropriate
analytical method for calculating the fees.
7.3 For primarily labor-based fees, determine a fully-loaded cost per productive labor hour at
the City. Compute the average full cost of providing each service. For primarily materials-
based fees, work with City staff to obtain estimates on costs incurred to provide the
service. Apply any associated labor time involved in the service, and compute the average
cost of each service. For primarily policy-based fees that seek to modify behavior, work
with City staff to define intent of the fee and past success or otherwise in implementing
the fee.
7.4 Calculate the updated / new schedule of fees.
Task Deliverables:
¦ Preliminary list of fees to be updated / calculated
¦ Schedule of updated miscellaneous fees
Task 8: Meetings & Presentations
8.1 Prepare materials and meet with City staff at key points during the study to review interim
findings and receive policy direction. The following meetings are anticipated:
¦ A kick-off meeting to initiate the study, review the work plan, schedule key milestones,
and review issues to be addressed.
¦ Up to three (3) meetings to review interim work products and discuss key assumptions
and data driving each analysis (connection charges, revenue requirements, and cost of
service/rates).
8.2 Prepare materials and meet with the Public Works Committee, City Council, and general
public to present study findings and recommendations. The following meetings are
anticipated:
¦ One (1) meeting with the Public Works Committee to review findings and
recommendations, and receive input and policy direction for finalizing the analyses
prior to bringing recommendations to City Council.
¦ Two (2) meetings to present findings and recommendations to the City Council and
public during a study workshop, City Council meeting and/or public hearing.
Consultant Agreement AG-C-337
August 26, 2008
Page 12 of 14
Task Deliverables:
¦ Meeting agendas
¦ Review/presentation materials
¦ Seven (7) onsite meetings
Task 9: Documentation
9.1 Develop a draft policy-oriented report for City staff review that focuses on findings,
conclusions, and implementation methods and issues related to the recommended rates.
The draft will be provided in electronic format.
9.2 Incorporate City staff comments as appropriate and deliver a final report in hard copy and
electronic (pdf) format. The details of the analysis will be included as a technical
appendix. Electronic versions of the spreadsheet models will also be submitted in Excel
format.
9.3 If desired, provide a supplemental document to be incorporated as the Financial Chapter
of the Comprehensive Water System Plan. Consistent with regulatory requirements, this
Chapter will include discussion of historical water utility financial performance, results of
the revenue requirement analysis and capital connection charge update, as well as
discussion of rate affordability, rate equity, and conservation considerations. This effort
will be coordinated with the City's consulting water engineer.
Task Deliverables:
¦ Draft rate study report (electronic format)
¦ Final rate study report
¦ Comprehensive Water System Plan Financial Chapter (optional)
Task io: Project Administration / Management
Perform miscellaneous project set up activities, work paper documentation, internal scheduling /
workload planning, invoicing, ongoing client correspondence, and other miscellaneous
administrative / project management activities throughout the course of the study.
Task Deliverables:
¦ Monthly progress reports
Consultant Agreement AG-C-337
August 26, 2008
Page 13 of 14
Exhibit B
Fee Schedule
City of Auburn Utility Rate Study
Consultant Hours
Technical Total
Principal Manager Admin. Estiamted Labor
Task Johnson Cbaw Support Hours Budget
Hourly Billing Rates: $195 $150 $60
Task 1- Data Collection / Validation 4 48 52 $7,980
Task 2 - Fiscal Policy / Water Supply Evaluation 14 44 1 59 $9,390
Task 3 - Capital Connection Charges 12 90 102 $15,840
Task 4 - Capital Financial Planning Analysis 6 60 66 $10,170
Task 5 - Revenue Requirement Forecast 16 140. 156 $24,120
Task 6 - Cost of Service / Rate Structure Evaluation 24 180 204 $31,680
Task 7 - Miscellaneous Fees Review 4 30 34 $5,280
Task 8 - Meetings & Presentations [7 mtgs] 42 70 8 120 $19,170
Task 9 - Documentation 12 104 12 128 $18,660
Task 10 - Project Administration/ Management 8 24 4 36 5,400
Total 142 790 25 957 $147,690
Consultant Agreement AG-C-337
August 26, 2008
Page 14 of 14
AMENDMENT #1 TO AGREEMENT NO. AG-C-337 BETWEEN
THE CITY OF AUBURN AND FCS GROUP, INC
RELATING TO THE UTILITY RATE STUDY
,Y /
THIS AMENDMENT is made and entered into this ~ day of ~by and
between the CITY OF AUBURN, a municipal corporation of the State of Washington (hereinafter referred
to as the "CITY"), and FCS Group, Inc (hereinafter referred to as the "CONSULTANT"), as an Amendment
to the Agreement between the parties for AG-C-337 executed on the 11th day of September 2008.
The changes to the agreement are described as follows:
1. CONTRACT TERM: The term of the Agreement for Professional Services is extended to December
31, 2010.
2. SCOPE OF WORK: There is no change in the scope of work.
3. COMPENSATION: There is no change to the amount authorized in the original agreement.
REMAINING TERMS UNCHANGED: That all other provisions of the Agreement between the parties
for AG-C-337 executed on the 11 day of September 2008. shall remain unchanged, and in full force and
effect.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first
above written.
FCS GROU,P, INC ?
,
;
gy.
Auth r ed Xign e
ATTEST (Optional):
By:
Its:
Approved as to form (Optional):
Attorney for (Other Party)
CITY O
~
Peter B. Lewis, Mayor
ATTEST:
~
Danielle E. Daskam, Auburn City Clerk
Appr ved as rm:
ie B. Aub rn City Att gney
Amendment No. 1 for Agreement No. AG-C-337
FCS Group, Inc
Page 1 of 1
A3. I&
CITY OF
Peter B. Lewis, Mayor
D_-BURN
WASHINGTON 25 West Main Street * Auburn WA 98001-4998 * www.aubumwa.gov * 253-931-3000
December 30, 2010
Martin Chaw
FCS Group
7525 166u Avenue Northeast Suite D-215
Redmond, WA 98052
RE: Agreement for Professional Services, AG-C-337
2008 Utility Rate Study
Dear Mr. Chaw:
This letter is to inform you that the above-referenced Agreement for Professional Services is
being closed at this time. Our records indicate that we processed the final payment for this
agreement on December 20, 2010 for invoice #1437-21011029 in the amount of $1,200.00. If
you feel that this Agreement for Professional Services should not be closed, or if there are any
outstanding invoices, please inform me by January 14, 2011.
Thank you for your firm's professional services in work related to the utility rate study. If you
should have any questions, feel free to give me a call at 253-804-5062.
Sincere ,
Dan Repp, P.E.
Utilities Engineer
Public Works Department
DR/ad/hg
cc: City Clerk
AG-C-337
AUBURN *MORE THAN YOU IMAGINED