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Home My WebLink AboutR-2025-054 Resolution authorizing a Supplemental Agreement 2 with FCS Group to provide an Irrigation Rate Study RESOLUTION NO. R-2025-054 A RESOLUTION authorizing a Supplemental Agreement 2 with FCS Group to provide an Irrigation Rate Study. WHEREAS, customer rates and fees finance the operation, maintenance, and improvement of City of Yakima irrigation system in accordance with state and federal requirements; and WHEREAS, the cost to support the system must be periodically assessed through a rate study to provide a basis for updated rates and fees that will meet current and projected requirements; and WHEREAS, City of Yakima requires consulting services to provide an Irrigation Rate Study to assess current and projected costs of service and to recommend rates and fees that will support current and future requirements; and WHEREAS, the consulting services provided will recommend appropriate rates and fees that will reflect customer usage of the utility based on a review of the historical financial performance of the utility, an evaluation of existing financial policies/practices, capital funding analysis, operating forecast, revenue requirement analysis and rate design; and WHEREAS, under Request for Qualifications #12342Q the City used the Municipal Research Services Center (MRSC) of Washington roster in selecting FCS Group as having the experience and expertise necessary to perform the rate study; and WHEREAS, the City entered into agreement with FCS Group on January 31, 2024 (Contract No. 2024-19) to provide consulting services to evaluate rates and fees for the domestic water utility; and WHEREAS, the City Council has determined that it is in the best interest of the City of Yakima and its residents to approve Supplemental Agreement 2 to the agreement with FCS Group to perform the required professional services for the irrigation rate study; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the Supplemental Agreement 2 to Contract No. 2024-019 between the City of Yakima and FCS Group in an amount not to exceed Forty-Two Thousand Seventy-Nine Dollars ($42,079) to provide the Irrigation Rate Study. ADOPTED BY THE CITY COUNCIL this 18th day of March, 2025. a Q� s=A MA ��`k� Patricia Byers, ayor ATTEST: bi Brandy B r dford, Dep ty ity Clerk '‘‘,gsHIN�? Contract Supplemental Agreement Supplemental Agreement Organization and Address: Number: 2 FCS, a Bowman company 7525 166th Ave NE, Ste D-215 Redmond, WA 98052 Original Contract Number: Execution Date of Supplement: 2024-019 City Project Number: Completion Date of Supplement: Original Contract Project Title: Maximum Amount Payable this Supplement: Domestic Water Rate and Fee Study $42,079.00 Supplemental Project Title: Maximum Total Amount Payable for the Irrigation Water Rate Study Agreement: $136,754.00 Section 1: Supplemental Agreement The City of Yakima, Washington desires to supplement the contract agreement entered into with FCS a Bowman company, and executed on January 31, 2024 and identified as Contract 2024-019. All provisions in the basic contract remain in effect except as expressly modified by this supplement. The changes to the agreement are described as follows: Section 2: Scope of Services Task 1 I Project Kickoff Meeting & Data Collection This kickoff meeting will provide an opportunity for the project team to identify and discuss key policy and technical issues to be addressed in the study, along with further data questions if needed Submit a written request for the data needed to complete the study FCS will review and analyze the data received and identify any data limitations, gaps, or issues of concern. Deliverables to include: • Prepare for and participate in one (1) remote project kickoff meeting with City staff. • Request the necessary information needed to perform the study. • Follow-up data request and ask clarifying questions as needed • Perform project set-up activities, work paper documentation, internal scheduling and workload planning, invoicing, client correspondence, and other miscellaneous tasks throughout the study. Task 2 I Revenue Requirement Forecast The revenue requirement is the total amount of rate revenue needed to meet capital, operating, debt service (if applicable), and policy-driven commitments. • Using an Excel spreadsheet model and with the input of City staff, FCS will develop an analytical model to project operating and capital revenue requirements While a six-year rate-setting period is assumed, the model can forecast up to 20 years. The model will be constructed with user-friendliness in mind and will accommodate the user entry of key data. • Up to three distinct scenarios. Scenarios could be based on capital plans that vary in cost, timing, and /or priority. Changes in service levels that impact operating expenditures could also be considered if that data is provided by City staff; e.g., additional staffing and/or programmatic requirements to meet existing or anticipated regulatory requirements or additional staffing requirements needed to execute the capital plan. Deliverables to include: • Construct the revenue requirements analysis and model (electronic[Excel]). • Up to three distinct scenarios. • Prepare for and attend two (2) remote review meetings with City staff to review results. Task 3 I Rate Design Develop annual rates to ensure that the revenue targets set from Task 2 are collected. Based on the City's current rate structure, overall costs from the revenue requirement will be allocated to either the operations and maintenance (O&M) or capital improvement program (CIP) for the utility and then divided by the total square footage (TSF) of the area served This task will maintain the City's current structure. Deliverables to include: • Annual rate schedule for City Council adoption based on selected revenue requirement scenario. • Prepare for and attend one (1) remote review meeting with City staff to review the results. • A jurisdictional survey comparing Yakima irrigation rates to other similar providers (up to six). Task 4 I City Council Meeting FCS will prepare for and meet with the City Council once to present findings. Deliverables to include. • Provide draft and final PowerPoint content for City Council meeting (electronic [PowerPoint]). • Participate in one (1) onsite City Council meeting. Task 5 I Documentation FCS will document findings in a comprehensive study report and provide a copy of the spreadsheet analyses for future use by City staff. • Draft and Final Report. FCS will provide up to two (2) draft report iterations for City review. The draft report will summarize the methodology and analysis undertaken in completing the project, the results and conclusions of the study, and noted recommendations. Submit a final report incorporating comments received from the City. • Spreadsheet Model. FCS will deliver to the City a final copy of the Excel-based spreadsheet models for City use. The models will provide for 1) evaluation of revenue and cost changes on rates, 2) analysis of fiscal policy implementation options, 3) analysis of changes in economic and financial indicators, 4) rate smoothing, and 5) variances to any other key rate study inputs including the capital plan, the operating budget, etc Deliverables to include. • Provide draft&final study report(electronic [Word or PDF]). • Provide final analytical model (electronic [Excel]). Section 6: Compensation Payment for this supplemented work will, as shown on Exhibit A is not to exceed $42,079, bringing the total amount of the Agreement to $136,754 The detailed estimates are for planning purposes only—the "not to exceed" amount refers to the total contract, not any given task. Section 8: Project Schedule and Budget The timeframe for completing the study will depend on various factors including the timeliness of receiving data, the relative quality and completeness of data, and the ability to schedule meetings in a timely manner. A study schedule will be developed in collaboration with the project team as part of the initial kick-off meeting. Based on our initial discussion regarding this supplemental contract, our understanding is that the schedule would resemble the following: • Supplemental Agreement under contract March 2025 • Data gathering by City: March -April 2025 • Analysis by FCS GROUP: March -August 2025 • Review meetings with City staff May—August 2025 • Council presentation development and attendance: October or November 2025 Exhibit A: Supplemental #2 Consultant Hours Principal Sr.Mgr. Asst.Mgr. Admin Total Total Sanchez Aaker Bozett Support Hours Budget Hourly Billing Rates: $310 $250 $220 $110 Task 1:Project Kickoff Meeting&Data Collection Project kickoff meeting(1 remote) 1 1 1 3 $ 780 Data request&Follow-up 1 4 5 1,130 Project administration 1 5 3 9 1,890 $ 3,800 Task 2:Revenue Requirement Forecast Construct analytical model 2 1 3 $ 550 Fiscal policy framework 1 2 3 690 Update operating forecast 1 6 7 1,570 Develop updated capital funding strategy 1 8 9 2,010 Project baseline revenue requirements 1 4 20 25 5,710 Up to three scenarios 1 2 8 2,570 Staff review meetings and materials(2 remote) 4 4 4 3,120 $ 16,220 Task 3:Rate Design Allocate costs to operating and capital components 1 1 3 5 $ 1,220 Review and"priceout"customer data to estimate TSF 1 2 8 11 2,570 Calculate operating and capital rates 1 1 2 4 1,000 Rate survey 1 3 4 910 Staff review meetings and materials(1 remote) 2 2 2 6 1,560 $ 7,260 Task 4:City Council Meeting City Council presentation materials 1 4 8 1 14 $ 3,180 City Council meeting(1 onsite) 8 8 16 3,760 Mileage 179 $ 7,119 Task 5:Documentation Spreadsheet model 1 1 2 $ 470 Draft report 2 6 20 28 6,520 Final report 1 2 3 690 $ 7,680 Supplemental Budget#2 16 47 112 5 157 $ 42,079 If you concur with this supplement and agree to the changes as stated above, please sign the appropriate spaces below and return to this office for final action. By: , t e , ( c-it,e__, By: V I G ricti 01/k t Q—C' Vi 171- 01 C- Ct'-'e--. Consultant Signature It n er 11 et j i)a� ate CITY CONTRACT NO.��t-'�`1 L'( C/ RESOLUTION NO k�• L,_- 1/ >• FCS Billing Rates a Bowman company EXHIBIT B FCS, a Bowman Company 2025 STANDARD FEE SCHEDULE Effective February 10, 2025 LABOR' Position/Title Billing Rate Principals Standard Rates $295-$325 Project Managers Standard Rates $220-$250 Consultants Standard Rates $170-$205 Administrative and Technical Support Public Relations $185 Technical Writer/Graphic Artist $160 Administrative Support $110 DIRECT EXPENSES 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 and specific terms will be established in advance prior to expenditure and billing. SUBCONSULTANTS When applicable, subconsultants will be charged at invoiced cost plus 10%. 1 Litigation rates are 150%of standard hourly rates for services in support of direct litigation, settlement negotiations, arbitration and/or mediation processes. 2025 Standard Fee Schedule fcsgroup.com I bowman.com