HomeMy WebLinkAboutR-2014-040 Wastwater, Industrial Wastewater and Stormwater Rate Studies Agreement with FSC Group RESOLUTION NO. R- 2014 -040
A RESOLUTION authorizing the City Manager to execute a Professional Services
Agreement with FCS Group in an amount not to exceed $91,000 to
develop and provide Rate Studies for the Wastewater, Industrial
Wastewater and Stormwater Utilities.
WHEREAS, the City of Yakima desires consulting services to provide a Wastewater,
Industrial Wastewater, and Stormwater Rate Study to obtain a fair and accurate assessment of
the Division's current rate structure and charges and how it relates to projected future needs
and requirements; and
WHEREAS, the consulting services provided will review the historical financial
performance of the utilities, evaluate existing financial policies /practices, capital funding
analysis, operating forecast, revenue requirement analysis, retail cost of service analysis, retail
rate structure evaluation, contract services charges, and pretreatment program charges and
recommend future rates; and
WHEREAS, assigning "cost share" and establishing "equity" for utility customers is
based on their demands and usage of the utilities will be reviewed; and
WHEREAS, the funding for the Rate Study was included within the 2014 authorized
budget as a Strategic Initiative; and
WHEREAS, the City Council has determined that it is in the best interest of the City of
Yakima to enter into a professional services contract agreement with FCS Group, which was
selected as the most qualified firm after contacting nine consultants listed on the Municipal
Research & Services Center (MRSC) Roster and conducting interviews with three; now,
therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to execute a Professional Services
Contract Agreement between the City of Yakima and FCS Group in an amount not to exceed
$91,000.00 (ninety -one thousand dollars), to develop a Wastewater, Industrial Wastewater and
Stormwater Rate Study, a copy of the Agreement with Exhibit A, B and C are attached hereto
and by reference made a part hereof.
ADOPTED BY THE CITY COUNCIL this 1 1 th day of March, 2014.
A EST: icah' Ga4ayor •
Sony dClaar Tee, City Clerk ,�;' i ,--
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CONTRACT AGREEMENT
BETWEEN
FCS GROUP AND CITY OF YAKIMA
7525 166"' Ave NE Ste D -215 j Wastewater Division
Redmond, WA 98052 2220 E Viola Ave
Yakima, WA 98901
PROJECT: 2014 WASTEWATER, INDUSTRIAL WASTEWATER, AND STORMWATER RATE
STUDY
THIS AGREEMENT combines all understandings between Parties regarding professional services for
the Project named above and supersedes all prior proposals, quotations, solicitations, negotiations,
representations, agreements or understandings, whether written or oral.
The performance of the professional services herein described and authorized by the City of Yakima, as
well as payment for such services shall be in accordance with the terms and conditions presented in this
Agreement and the following Sections and Exhibits which are attached and incorporated by reference
which, taken together, shall constitute the whole Agreement.
Section I - Relationship of the Parties
Section II - Contract Provisions
Exhibit A - Scope of Work and Task Plan
Exhibit B - i Project Budget /Fee Schedule
Exhibit C - Study Schedule
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals this day of
, 2014.
APPROVED: APPROVED:
CITY OF YAKIMA FCS GROUP
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Tony O'Rou ke, City Manager i I,fa�yn 4 ' hns s
/ on Princ" al
Date J tat Date: f L
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RESOLUTION �
CITY CONTRAC t NO:�
ATTEST: N N0: `1
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*=- •- � Tee, City Clerk
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City of Yakima
Wastewater Di ' siim 1 UJ ;� ♦ D
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SECTION I: RELATIONSHIP OF THE PARTIES
The City of Yakima ( "Client ") desires consulting services for a Wastewater, Industrial Wastewater, and
Stormwater Rate Study. In furtherance of the Project, the Client hereby contracts with FCS GROUP to
perform the professional services described in Exhibit A of this Agreement. All services shall be
performed under the joint supervision of the Client's Representative, Shelley Willson, or a designee or
designees identified in writing to 1i CS Group by the Client's Representative.
This Agreement shalt be for the benefit of and be binding upon successors, assigns, and legal
representatives of each of the Parties hereto. Any assignment or transfer of an interest in this Agreement
by either Party without the written consent of the other shall be void.
SECTION II: CONTRACT PROVISIONS
1. Scope of Work: FCS Group shall perform the service for the Client as defined in Exhibit A,
Scope of Work, which is attached hereto and hereby incorporated by this reference.
2. Time for Completion: The Scope of Work for the conduct of the study as set' forth above is
anticipated to be completed by FCS Group, within a time frame approxnnating that shown by the
following schedule
Notice to Proceed: Expected Mid -March 2014
Completion of Draft Analysis within 5 months of Notice to Proceed (NTP)
Presentations to Council: within 5 months of NTP
Completion of Project• On or before September 1, 2014
FCS Group agrees to perform the work described in the Scope of Work according to the contract
schedule. Any delays shall be agreed upon by FCS Group and Client prior to the due date. Changes in
the schedule caused by Client delays may require additional compensation and a change order.
3. Payment: FCS Group will be paid by the Client on a time and materials basis as outlined below and in
accordance with the standard billing rates attached hereto as Exhibit B. FCS Group agrees to perform the
services as set forth in Exhibit A at a cost not to exceed (S84,595 00). It is understood that FCS Group
will not exceed this amount without the Client's prior written authorization.
FCS Group shall submit to the Cli an invoice each month for payment for work completed through the
accounting cut -off day of the previous month Such invoices shall be for work perfonned and costs
incurred prior to the date of the invoice and not covered by previously submitted invoices. FCS Group
shall submit, with each invoice a summary of time expended on the work for the current billing period,
copies of subconsultant invoices, and any other supporting materials detemmned by the Client necessary
to substantiate the costs incurred.' Client will use its best efforts to pay such invoices within thirty (30)
days of receipt and upon approval of the work completed and amount killed. Client will notify FCS
Group promptly if any problems are noted with the invoice. Client may question any item in an invoice,
noting to FCS Group the questionable item(s) and withholding payment for such item(s). FCS Group
may resubmit such items) in a subsequent invoice together with additional supporting information
required.
Payment to FCS Group for services set forth in Exhibit A shall be: an amount equal to FCS Group's
standard billing rates as set forth in Exhibit 13 multiplied by the actual hours worked.
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Direct expenses will not be charged except as identified in Exhibit 13. Payment shall be made monthly
upon receipt and approval of FCS Group's invoice.
Payment for any work shall not constitute a waiver or release by Client of any claims, right, or remedy it
may have against the FCS Group under this Agreement or by law, nor shall such payment constitute a
waiver, remission, or discharge by Client of any failure or fault of FCS Group to satisfactorily perform
the PROJECT WORK as required under this Agreement.
4. Supplemental Agreements: Supplemental Agreements may be entered into upon mutual written
agreement that would increase or decrease the scope and associated costs and payment.
5. Work to be Accomplished: All work accomplished will be performed under the direction of the
Client Representative or his /her Designee.
6. Termination: This contract may be tenninated by the Client by giving FCS Group written notice of
such termination no fewer than fifteen (15) days in advance of the effective date of said termination. FCS
Group shall be entitled to terminate this agreement only in the case of a material breach by the Client, and
upon failure of the Client to remedy said breach within fifteen (15) days of wntten notice of the breach.
7. Indemnity: FCS Group shall comply with all Federal Government, State and local laws and
ordinances applicable to the work to be done under this Agreement
(a) FCS Group agrees to defend, indemnify, and hold harmless the Client, its elected officials,
agents, officers. employees, agents and volunteers (hereinafter "parties protected ") from (1)
claims, demands, liens lawsuits, administrative and other proceedings,(including
reasonable costs and attorney's fees) and (2) judgments, awards, losses, liabilities, damages,
penalties, fines, costs and expenses of any kind claimed by third parties arising out of, or
related to any death, inju damage or destruction to any person or any property to the
extent caused by any negligent act, action, default, error or omission or willful misconduct
arising out of FCS Groups performance under this Agreement. In the event that any lien is
placed upon the Client's property or any of the Client's officers. employees or agents as a
result of the negligence or willful misconduct of FCS Group, FCS Group shall at once
cause the same to be dissolved and discharged by giving bond or otherwise.
(b) Client agrees to indemnify and hold FCS Group hailess from loss, cost, or expense of any
kind claimed by third pa rnn
rties, including without limitation such loss, cost, or expense
resulting from injuries to persons or damages to property, caused solely by the negligence
or willful misconduct of the Client, its employees, or agents in connection with the
performance of the Scope l of Work.
(c) If the negligence or willful misconduct of both FCS Group and the Client (or a person
identified above for whom each is liable) is a cause of such third party claim, the loss, cost,
or expense shall be shared between FCS Group and the Client in proportion to their relative
degrees of negligence or willful misconduct and the right of indemnity will apply for such
proportion.
(d) Nothing contained in this Section or this Agreement shall be construed to create a liability
or a right of indemnification in any third party.
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8. All Work Produced is Property of the Client: The materials, computer programs, reports,
calculations, analyses, etc., generated by FCS Group under this contract, including the final report, shall
become the property of the Client. The Client agrees that if it uses products prepared by FCS Group for
purposes other than those intended in this agreement, it does so at its sole risk and agrees to hold FCS
Group harmless thereafter
9. Assignment: The Contractor shall not assign or subcontract any portion of the contracted activities
without obtaining prior written approval from the Client.
10. Integrated Agreement: This agreement together with attachrncnts or addenda represents the entire
and integrated agreement between the Client and FCS Group supersedes all prior negotiations,
representations, or agreements written or oral. This agreement may he amended. by written instrument
signed by both the Client and FCS, Group.
11. Independent Contractor: The parties intend that an independent Contractor /Client relationship will
be created by this agreement. No agent, employee, or representative of FCS Group shall be deemed to be
an agent, employee, or representative of the Client for any purpose. FCS Group shall be solely
responsible for all acts of its agents, employees, representatives, and subcontractors during the
performance of this contract.
12. Equal Opportunity: During the performance of this Agreement, FCS Group. and FCS Group's
subconsultants and subcontractors shall not discriminate in violation of any applicable federal, state
and /or local law or regulation on the basis of age, sex, race, creed, religion, color, national origin, marital
status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, and any
other classification protected under federal, state, or local law. This provision shall include but not be
limited to the following' employment, upgrading, demotion, transfer, recruitment, advertising, layoff or
termination, rates of pay or other forms of compensation, selection for training, and the provision of
services under this Agreement. FCS Group agrees to comply with the applicable provisions of State and
Federal Equal Employment Opportunity and Nondiscrimination statutes and regulations.
13. Notices: Notices to the Client ishall be sent to the following address:
City of Yakima Wastewater Division
Attention Shelley Willson, Wastewater Manager
2220 E Viola Ave
Yakima, WA 98901
509 575.6077
Notices to FCS Group shall be sent to the following address:
FCS Group
Attention: Karyn Johnson, Principal
7525 166"' Ave NE Ste D -215
Redmond, WA 98052
425- 867 -1802 ext. 241
14. Insurance At all times during performance of the Services, FCS Group shall secure and maintain in
effect insurance to protect the Client and FCS Group from and against all claims, damages, losses, and
expenses arising out of or resulting from the performance of this Contract. FCS Group shall provide and
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maintain in force insurance in limits no less than that stated below, as applicable. The Client reserves the
right to require higher limits should it deem it necessary in the best interest of the public. If FCS Group
carries higher coverage limits than the limits stated below, such higher limits shall be shown on the
Certificate of Insurance and Endorsements and FCS Group shall be named as an additional insured for
such higher limits.
14.1.1 Commercial General Liability Insurance. Before this Contract is fully executed by the
parties, FCS Group shall provide the Client with a certificate of insurance as proof of commercial liability
insurance and commercial umbrella liability insurance with a total liability limit of the limits required in
the policy, subject to minimum lnnits of One Million Dollars ($1,000,000) per occurrence combined
single limit bodily injury and property damage, and Two Million Dollars ($2,000,000.00) general
aggregate. The certificate shall clearly state who the provider is, the coverage amount, the policy number,
and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration
of this Contract. The policy shall name the Client, its elected officials, officers, agents, employees and
volunteers as additional insureds The insured shall not cancel or change the insurance without first
giving the Client thirty (30) calendar days prior written notice. The insurance shall be with an insurance
company or companies rated A -VII or higher in Best's Guide and admitted m the State of Washington.
14.1.2. Commercial Automobile Liability Insurance.
(a) If FCS Group owns any vehicles, before this Contract is fully executed by the parties.
FCS Group. shall provide the Client with a certificate of insurance as proof of automobile
liability insurance and personal umbrella liability insurance with a total liability limit of
the limits required in the policy, subject to minimum limits of One Million Dollars
($1,000,000) per occurrence combined single limit bodily injury and property
damage. Automobile liability will apply to Any Auto" and be shown on the certificate.
(b) If FCS Group does not own any vehicles, only "Non -owned and Hired Automobile
Liability" will be required and may be added to the commercial liability coverage at the
same limits as required' in that section of this Contract, which is Section 10.1.1 entitled
"Commercial General Liability Insurance ".
(c) Under either situation described above in Section 14.1.2.a or Section 14.1.2.b the
required certificate of insurance shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in
effect. Said policy shall be in effect for the duration of this Contract. The policy shall
name the Client, its elected officials, officers, agents, employees, and volunteers as
additional insureds. The insured shall not cancel or change the insurance without first
giving the Client thirty (30) calendar days prior written notice. The insurance shall be
with an insurance company or companies rated A -VII or higher in Best's Guide and
admitted in the State of Washington.
14.1.3. Statutory workers' compensation and employer's liability insurance as required by state
law.
14.1.4. Professional Liability Coverage. Before this Contract is fully executed by the parties,
FCS Group shall provide the Client with a certificate of insurance as proof of professional liability
coverage with a total liability limn of the limits required in the policy, subject to minimum limits of One
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Million Dollars (51,000,000) per claim, and Two Million Dollars ($2,000,000) aggregate. The certificate
shall clearly state who the provider is, the coverage amount, the policy number, and when the policy and
provisions provided are in effect! Said policy shall be in effect for the duration of this Contract. The
insured shall not cancel or change the insurance without first giving the Client thirty (30) calendar days
prior written notice. The insurance shall be with an insurance company or companies rated A -VII or
higher in Best's Guide. If the policy is written on a claims made basis the coverage will continue in force
for an additional two years after the completion of this contract.
Failure of either or all of the additional insureds to report a claim under such insurance shall not prejudice
the rights of the Client, its officers, employees, agents, and representatives there under The Client and
the Client's elected officials, officers, principals, employees, representatives, and agents shall have no
obligation for payment of premiums because of being named as additional insureds under such insurance.
None of the policies issued pursuant to the requirements contained herein shall be canceled, allowed to
expire, or changed in any manner that affects the rights of the Client until thirty (30) days afler written
notice to the Client of such intended cancellation, expiration or change.
15. Jurisdiction and Venue. This Agreement• shall be administered and interpreted under the laws of the
State of Washington. Jurisdictionjof litigation arising from this Agreement shall be in Washington State.
If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null,
and void insofar as it conflicts with said laws, but the remainder of this Agreement shall be in full force
and effect. Venue for all disputes arising under this Agreement shall be Yakima County, State of
Washington.
16. Dispute Resolution In the event that any dispute shall arise as to the interpretation of this
agreement, or in the event of a notice of default as to whether such default does constitute a breach of the
contract, and if the parties hereto cannot mutually settle such differences, then the parties shall 'first pursue
mediation as a means to resolve the dispute If either of the afore mentioned methods are not successful
then any dispute relating to this Agreement shall be decided in the courts of Yakima County, in
accordance with the laws of Washington. If both parties consent in writing, other available means of
dispute resolution may he implemented.
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EKIIIBIT A: SCOPE OF WORK
The following Scope of Work SOW identifies that (SQW) at FCS GROUP will perform for the City of Yaknna's
Wastewater, Industrial Wastewater, and Stormwater Rate Study.
SCOPE OF WORK
Task I: Data Collection / Kick -off Meeting
Establish a foundation for the study by conducting a structured data collection process and review of study
issues, objectives, and scheduling'requirements. The following subtasks will be performed:
▪ Prepare a written request for data/ information to be collected from the City for the study. Due to
the tight study timeframe, we will submit this list to the City at time of contract negotiation for a
quick start to the data coll ection activity.
▪ Prepare for and attend an on -site kick -off meeting with key City and Consultant participants to
review scope, approach and schedule. Key issues and objectives to be addressed in the study will
be discussed.
® Review, analyze, and validate data as necessary for use in conducting the technical analyses
Follow up with City staff (via telephone / email) for any additional items or explanations as
necessary.
Task 2: Financial Policy Evaluation
Review the historical financial performance of the wastewater and stonnwater utilities, evaluate existing
financial polices /practices, and recommend alternative practices that might further City goals for financial
sustainability. Review policies implemented during the previous wastewater rate study, evaluate current
achievement of those policies, and'recommend adjustments as warranted to meet current objectives.
Evaluate and recommend similar stormwater policies. The following subtasks will be perfonned:
n Review historical financial statements to assess' the overall financial condition of the wastewater
and stormwater utilities. This analysis will establish the context for the evaluation of fiscal policies
to be incorporated into the',rate study.
▪ Review the City's existing and practices regarding cash•reserves, debt management and
coverage, and system reinvestment (depreciation) funding rates Recommend
enhancements, as warranted, to provide for sound financial management. Evaluate the need for
policies, the basis for minimum thresholds, and the financial and rate impacts for establishing any
new or revised policies.
▪ Incorporate recommended policies into the revenue requirement analysis (Task 5).
Task 3: Capital Funding Analysis
Establish a strategy to fund the identified municipal wastewater, industrial wastewater, and stormwater
capital needs over a 10 -year study period The budget provides for up to two (2) alternative capital funding
strategies. The following subtasks will be performed:
• o Review the City - provided (d etailed capital project list for each utility Incorporate capital inflation
factors and forecast annual capital project costs over the study
▪ Identify potential sources for funding utility projects including available cash reserves, connection
charges, direct rate funding, contributions, and the use of debt. Develop alternative strategies for
funding the capital prograins, determining borrowing needs and associated coverage requirements
over the study period. To he conservative in our forecast, revenue bonds will be the assumed debt-
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financing mechanism. Grants and/or Iow- interest loans will only be assumed if approval has been
received. Alternative scenarios can be developed to test the sensitivity of obtaining grants /low cost
loans
Note that the study does not include an update of Wastewater connection charges or development
of stonnwater connection.icharges. Forecasted revenues will be based on current charges and
growth, forecasts.
a Calculate new debt service costs and associated coverage requirements for each utility over the
study period.
Task 4: Operating Forecast
Forecast operating revenues and expenditures for each utility over the study period. The following subtasks
will be performed:
• Review actual 2013 . and 2014 budgeted revenues and expense detail.
▪ Incorporate economic./ financial assumptions and forecast annual operating revenues (under
existing rates) and expenditures over the study penod. Incorporate any known or expected future
year costs not- accounted for in the current budgets (e.g., additional future staffing needs, changes
in operations due to regulatory requirements, anticipated changes in operational practices, etc.).
Incorporate existing debt,s'ervice schedules and integrate new debt service costs for funding future
capital costs.
Task 5: Revenue Requirement Ainalysis
Analyze the financial performance of the wastewater and stormwater utilities over the study period and
recommend revenue adjustment strategies. The result will he the annual and cumulative percentage
revenue adjustments needed to meet the financial obligations of each utility, including cash needs and debt
service coverage policies. Cost recovery by customer class will be determined in Tasks 6 and 7. The budget
provides for up to three (3) revenue requirement scenarios The following subtasks will be performed:
▪ Integrate fiscal policies, capital financing impacts, and the operating forecast to determine revenue
requirements for the studyperiod. Compare annual total cash and coverage requirements against
available annual rate and miscellaneous operating revenues, and identify any projected shortfalls
over the.forecast period.
• Develop rate revenue adjustment strategies that meet financial obhgations over the planning
horizon and provide smooth impact to utility customers, to the extent practical.
▪ Forecast balance activity in utility reserves to ensure consistency with recommended minimum
fund balance targets.
Task 6: Retail Cost of Service Analysis
The cost of service analysis provides a defensible basis for assigning "cost shares" and establishing
"equity" for utility customers based on their unique demands placed on the municipal wastewater,
industrial wastewater, and stonnwater systems. Retail wastewater customer classes include inside and
outside City single family residential, multi - family residential, and commercial /industrial. Outside City
user rates are roughly 1.5 times the. inside City rate. Extra strength surcharges are imposed on customers
not connected to the separate industrial wastewater system yet discharging wastewater exceeding domestic
strength thresholds for BOD, TSS, land FOG. In addition, the City imposes septage and exceptional
wastewater disposal charges.
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For wastewater, regular retail user, rates assume domestic level strength; thus it is likely that no customer
class rate differential is necessary .for these customers. Cost differentials will be established to determine
rates for extra strength and septage customers.
A new Industrial Wastewater customer service rate needs to be established based on the new process
system installed in 2013. This new class will be for industries connected directly to the separate collection
system that delivers the wastewater to the industrial treatment process designed to treat a high sugar
content waste- stream.
Stormwater classes include residential (small, average and large) and non - residential using impervious
surface data as the basis. The City;does not anticipate a need to revise the current stonnwater rate /credit
schedule. The following subtasks will be performed:
▪ A Customer Statistics Analysis to evaluate individual customer data including: number of
accounts, dwelling units, meter size, water use / wastewater contribution, and impervious surface
area.
• A "Price Out" of Rate Revettue.hy Customer Class under Existing Rates to validate the underlying
customer data set for use in assessing cost of service shifts and designing alternative rate
structures. This is a critical process in a cost of service rate study to provide the baseline for ,
analyzing the current distribution of costs by customer class in comparison to any indicated shifts
in the distribution of costs; resulting from the cost of service analysis Apply prevailing rates to the
customer statistics and calculate revenues by customer class for each utility These calculated
revenues will be tested against actual reported revenues by customer class to determine if the
underlying data set is valid. Depending on the initial outcome, this could require follow up with
City staff to determine potential reasons for any significant discrepancies before moving forward
with updated or new rate structures.
A Functional Allocation of Svsrem Assets and Expenses to provide the baseline for assigning costs
to customer classes. For wastewater, we will review historical asset records, classify plant
investment by mayor categories, and allocate costs to functional service components based on
system design criteria andamdustry standards. Functional service components include customer,
flow, and treatment (BODi, TSS, and FOG). A detailed allocation process will not be required for
Stormwater since this existing rate structure will be maintained
• A Distribution of Costs to'Customer Classes using the results of the customer billing analysis and
the functional cost allocation process. Allocate system costs to customer classes in proportion to
use /demand. Derive unit costs of service for use in designing rate structure components (further
discussed in Task 8 below).
Task 7: Retail Rate Structure Evaluation
The rate design incorporates specific pricing strategies that link to cost and policy parameters and provide
for revenue stability as well as understandability of the rate structure. The budget provides for the
calculation of up to two (2) alternative wastewater rate structures. The following subtasks will be
performed:
▪ Review and analyze the current wastewater and industrial wastewater rate stnuctures. Recommend
modifications reflective of cost -of- service findings and policy objectives for rate stability,
customer equity, efficiency of use, and administrative practicality. This will include evaluation of
outside city rate multipliers.
Evaluate and demonstrate the ability of the resulting rates to generate the projected and required
revenues by testing rates against composite system customer demands. Identify revenues to be
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generated from the fixed and volume -based components of the rate structures to ensure adequate
revenue stability.
Prepare sample wastewater, industrial wastewater, and stormwater bills for each class of service
comparing existing rates and proposed rate impacts. Conduct a survey of up to 10 neighboring
jurisdiction's current wastewater and stormwater bills for the single family residential class at a
minimum.
Task 8: Wastewater Contract Services Charges
Review the recently updated contract services charges for the management and treatment ofwastewater
collected by the City from Terrace Heights (TH) and Union Gap (UG) following the methodology
prescnbed in the new Three Part Agreements.
Task 9: Pretreatment Program Charges
The City's pre - treatment program was fonned for the purpose of regulating non - domestic strength
wastewaterdischarges. Revenues collected from program- related charges are used to administer and
enforce the program. Charge categories include. significant industrial user (SIU) permit fees, minor
industrial user (MIU) base fees, and costs incurred for outsourcing sampling and laboratory testing. Update
SIU and MIU charges based on current customers, costs and policy direction.
Task 10: Meetings & Presentations 1
Prepare materials and attend the following meetings to review interim findings, obtain policy direction, and
present draft and final study results. The following meetings are anticipated:
la Up to three (3) meetings with City staff and management to review interim findings, receive policy
direction, and strategize for the CilyCouncil presentation
▪ One (1) meeting with the City Council to present study results and recommendations.
• Additional meetings can he facilitated via teleconference and GoToMeeting to accommodate
interim.reviews as necessary.
Task . 11: Documentation
Prepare /submit a study report summarizing major assumptions, findings and study recommendations. A
draft will be provided in electronic format for City staff review and comment. A final report will be
delivered in hard copy and electronic format. The supporting spreadsheet analyses will he included as
technical appendices. An electronic version of the spreadsheet models will also be provided.
Task 12: 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 study
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EXHIBIT B: PROJECT BUDGET
The exhibit below outlines the current hourly rates, estimated labor hours, cost per task and toal fee for
the project.
Consultant Hours
Principal in Project Stormwater Total
Charge Manager Analyst Advisor Admin. Estimated Total
Task Johnson Wison Aaker Ghilarduca Support Hours Budget
Hourly Billing Rates 6225 5175 5125 5225 575
Task 1 Data Collecton ! Kicko8 Meetng [1 m;g) 8 10 24 42 $ 6.550
Task 2 - Financial Policy Evaluator 2 4 16 2 24 $ 3,600
Task 3 - Capital Funding Analysis 1 4 16 21 $ 2,925
Task 4 - Operatng Forecast 1 4 16 21 $ 2,925
Task 5 - Revenue Reg uirement Analysis - 2 8 48 2 60 $ 8.300
Task 6 -Retail Costol Service Analysis 8 16 80 2 106 5 15.050
Task 7 - Retail Rata Stucture Evaluaton 2 6 20 2 30 $ 4,450
Task 8 - Wastewater Contact Services Charges 2 8 20 30 $ 4,350
Task 9 - Pre - Treatment Charges 2 6 40 48 $ 6,500
Task 10 - Meetings & Presentations (4 mijs) • 16 40 40 4 100 $ 15.900
Task 11 - Documentafon 4 8 48 60 $ 8,300
Task 12 - Protect Adnnnistabon/Manageinenl 2 7 2 4 15 $ 2,225
Subtotal 50 121 370 8 8 557 $ 81.075
Technology Charge (a) $ 2.785
Mileage(b) $ 735
Total 1 $ 84,595
(a) $5 00 per labor hour b cover overhead tar IT sysrns.computers, cormunicaton devices and connectvity
(8) $0 50 per m!e
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EXHIBIT C: PROJECT SCHEDULE
Performance of the Scope of Work described in Exhibit A will begin immediately upon notice to proceed.
Major milestones are estimated as follows:
• Notice to Proceed (NTI: Expected mid -March 2014
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c Draft Results / Report July 2014
• Final Results / Reports'— August 2014
® City Council Presentation — August 2014
Final Deliverables — September 1, 2014.
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1
For Meeting of: 3/11/2014
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ITEM TITLE: Resolution authorizing an Agreement with FCS Group in an
amount not to exceed $91,000 to develop and provide a
Wastewater, Industrial Wastewater and Stormwater Rate
Study.
SUBMITTED BY: Debbie Cook, Director of Utilities and Engineering
Shelley Willson, Wastewater Manager
SUMMARY EXPLANATION:
The City of Yakima's 2014 Strategic Initiatives includes completing a utility rate study for
Stormwater, Wastewater and Industrial Wastewater. The existing Wastewater and Stormwater
Rate Ordinances expire at the end of 2014.
The Wastewater Division requested proposals for completion of the rate studies from nine
consulting firms listed on Municipal Research & Services Center (MRSC) Roster and three firms
were requested to interview. FCS Group was selected as the most qualified firm to complete
the utility rate studies. The attached Professional Services Agreement with Exhibit A, B and C
includes the scope of work and project schedule for the rate studies that will evaluate existing
and future operation, maintenance and capital costs to develop recommended utility rates for
Wastewater, Industrial Wastewater and Stormwater. FCS will complete their analysis and
provide their recommendations to Council for consideration during preparation of the 2015
Budget.
Resolution: X Ordinance:
Other (Specify):
Contract: X Contract Term:
Start Date: March 10, 2014 End Date: September 30, 2014
Item Budgeted: Yes Amount: $91,000
Funding Source /Fiscal Impact: 441 Stormwater and 473 Wastewater
Strategic Priority: Improve the Built Environment
Insurance Required? No
Mail to: FCS Group Karyn Johnson 7525 166th Ave NE STE D -215
Redmond WA 98052
Phone: 425 - 867 -1802 ext 241
APPROVED FOR
SUBMITTAL: . -. - City Manager
RECOMMENDATION:
Staff respectfully requests City Council approve the Resolution
ATTACHMENTS:
Description Upload Date Type
0 Resolution FCS Group 2/14/2014 Cover Memo
FCS PSA and Exhibits A, B and C 2/14/2014 Cover Memo