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Res 1539 - Agrmt Fin Cons Rate COUNCIL BILL NO. 1965 RESOLUTION NO. 1539 A RESOLUTION ENTERING INTO AN AGREEMENT WITH FINANCIAL CONSULTING SOLUTIONS GROUP, INC. FOR A RATE STUDY AND SYSTEM DEVELOPMENT CHARGE REVIEW FOR WATER SERVICE AND AUTHORIZING THE MAYOR TO SIGN SUCH AGREEMENT. WHEREAS, The City of Woodburn has completed a Water Master Plan for city water service and desires to evaluate the plans impact on water rates, and WHEREAS, The city's water system development charge structure has been in place since 1992 and a review of the charges is needed, and WHEREAS, Professional financial consulting services are required to complete a comprehensive water rate study and system development charge review for city water service, and WHEREAS, The city has determined that Financial Consulting Solutions Group, Inc. is qualified to provide the required financial consulting services and an agreement has been developed to provide the required services; NOW THEREFORE THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. That the City of Woodburn enter into an agreement, which is affixed as Attachment IJ A" and by this reference incorporated herein, with Financial Consulting Solutions Group, Inc. for consulting services to provide a water rate study and system development charge review for water service for the City of Woodburn Section 2. That the Mayor of the City of Woodburn be authorized to sign said agreement on behalf of the City. Page 1- COUNCIL BILL NO. 1965 RESOLUTION NO. 1539 1 .----..'."..---.-,.,-,.."....--.----" . .. Approved as to form: City Attorney Date APPROVED: ~ Richard Jennings, ayor Passed by the Council May 24. 1999 Submitted to the Mayor May 25, 1999 Approved by the Mayor May 25. 1999 Filed in the Office of the Recorder May 25. 1999 ATTEST: r:!l-~ Ma y Tetlnant, Recorder City of Woodburn, Oregon Page 1- COUNCIL BILL NO. 1965 RESOLUTION NO. 1539 .-..,.,--.-.. .. ..-",'_..,-....".....".,-'~--'--..,---,..,------_...,~---. ATTACHMENT- A- I'Ag@-'- of ~ PERSONAL SERVICES CONTRACT This Agreement is made and entered into by and between the City of Woodburn, Oregon, an Oregon municipal corporation, hereinafter referred to as "City", and Financial Consulting Solutions Group, Inc., a Washington corporation doing business in Oregon, hereinafter referred to as "Consultant", regarding work related to the Rate Study and System Development Charge Review for Water Service for the City of Woodburn, Oregon. IT IS HEREBY AGREED by and between the parties to this Agreement: 1. Term The term of this Agreement shall be from the date of execution by both parties until tasks required hereunder are complete and accepted, unless earlier terminated in accordance herewith. 2. Consultant's Services Consultant agrees to provide the services described in the Scope of Work dated May 18, 1999, a copy of which is attached hereto as Exhibit "A", and is incorporated herein by this reference. 3. Payment Consultant will be paid by the City on a time and materials basis as outlined below and in accordance with the standard billing rates attached hereto as Exhibit "B". Consultant agrees to perform the services as set forth in Exhibit "A" at a cost not to exceed $36,265. It is understood that Consultant will not exceed this amount without the City's prior written authorization. Payment to Consultant for services set forth in Exhibit "~' shall be: an amount equal to Consultant's standard billing rates as set forth in Exhibit "B" multiplied by the actual hours worked. There will be no charges for out-of-pocket expenses and material costs of Consultant incurred in the direct interest of the project, unless separately agreed to by the City. Payment shall be made monthly upon receipt and approval of consultant's invoice. 4. Independent Contractor Consultant is engaged hereby as an independent contractor, and will be so deemed for purposes of the following: A. Consultant will be solely responsible for payment of any Federal or State taxes required as a result of this Agreement. Page 1 - Personal Services Contnct -,,-- ___on. '-'-------r----------."''' ~~:~~E~-f- B. The Consultant is an independent contractor for purposes of the Oregon workers' compensation law (ORS Chapter 656) and is solely liable for any workers' compensation coverage under this Agreement. 5. Employees No person shall be employed for more than eight hours in anyone day, or 40 hours in any one week, except in cases of absolute necessity, emergency or where the public policy absolutely requires it, and in such cases except in cases of agreements for personal services as defined in ORS 279.051, the laborer shall be paid at least time and a half pay for all overtime in excess of eight hours a day and for work performed on Saturday and on any legal holiday specified in ORS 279.334. Persons who perform work under a personal services agreement shall be paid at least time and a half of all overtime worked in excess of 40 hours in anyone week, except for individuals who are excluded under ORS 653.010 to 653.261 or under 29 U.S.C. ~~201 to 209 from receiving overtime. Should Consultant elect to utilize employees on any aspect of this Agreement, Consultant shall be fully responsible for payment of all withholding required by law, including but not limited to taxes, including payroll, income, Social Security (FICA) and Medicaid. Consultant shall also be fully responsible for payment of salaries, benefits, taxes, Industrial Accident Fund contributions and all other charges on account of any employees. Consultant shall pay to the Department of Revenue all sums withheld from employees pursuant to ORS 316.167. All costs incident to the hiring of assistants or employees shall be Consultant's responsibility. Consultant shall indemnify, defend and hold City harmless from claims for payment of all such expenses. Unless specifically set forth on Exhibit A, expenses relating to items set forth in this paragraph shall not be the basis of additional reimbursement of Consultant. No person shall be denied or subjected to discrimination in receipt of the benefits of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, marital status, age, disability or national origin. Any violation of this provision shall be grounds for cancellation, termination or suspension of the Agreement in whole or in part by City. 6. Indemnity and Insurance Consultant acknowledges responsibility for liability arising out of the performance of this Agreement and shall hold City, its officers, agents, and employees harmless from and indemnify and defend the same of any and all liability, settlements, loss, costs and expenses in connection with any action, suit, or claim resulting or allegedly resulting from Consultant's negligent acts, omissions, activities or services provided pursuant to this Page 2 - Personal Services Contract .,-" ~.---~,.".-..,-..-_.-""_._--.....__.. -..,..,.--_.-..........-~ . ATTACHMENT A page.-L. of ~ Agreement or from Consultant's failure to perform its responsibilities as set forth in this Agreement. Nothing in this section shall be construed to require Consultant to indemnify or defend City from its own negligent acts. Consultant, its subcontractors, if any, and all employers working under this Agreement are subject employers under the Oregon Worker's Compensation Law and shall comply with ORS 656.017 which requires workers' compensation coverage for all their subject workers. Consultant shall maintain throughout this Agreement the following insurance: A. Workers' compensation and employers liability insurance as required by the State where the work is performed. B. Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from the use of motor vehicles, including on-site and off-site operations, and owned, non-owned, or hired vehicles, with $1,000,000 combined single limits. C. Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of Consultant or of any of its employees, agents or subcontractors, with $1,000,000 per occurrence and in the aggregate. 4. Professional Liability Insurance of $250,000. Except in the case of Workers' compensation insurance, City shall be named as an additional insured with respect to Consultant's insurance coverages identified herein. The coverage provided by these policies shall be primary and any other insurance carried by City is excess. Consultant shall be responsible for any deductible amounts payable under all policies of insurance. 7. Standard of Care In the performance of its professional services, Consultant shall use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of its profession practicing in the State of Oregon. Consultant will reperform any services not meeting this standard without additional compensation. Consultant's reperformance of any services, even if done at City's request, shall not be considered as a limitation or waiver by City of any other remedies or claims it may have arising out of consultant's failure to perform in accordance with the applicable standard of care or this Agreement. Page 3 - Persoftal Services Contract , __.,__. _~,____,_,'_"____'''~_____'''_''N'''_''_~__ 8. Termination ATTAC~ENT A Page of~ This Agreement may be terminated by the City by giving Consultant written notice of such termination no fewer that fifteen (15) days in advance of the effective date of said termination. Consultant shall be entitled to terminate this Agreement only in the case of a material breach by the City, and upon failure of the City to remedy said breach within fifteen (15) days of said notice. If City terminates the Agreement for its own convenience, payment of Consultant shall be prorated to and include the day of termination and shall be in full satisfaction of all claims by Consultant against City under this Agreement. 9. Work is Property of City All work in its original form which is performed or produced by Consultant under this Agreement shall be the exclusive property of City and shall be delivered to City prior to final payment. Consultant reserves the right to use its spreadsheet models in its ongoing use on other projects absent any City-specific data. 10. Law of Oregon The Agreement shall be governed by the laws of the State of Oregon. The Agreement provisions required by ORS Chapter 279 to be included in public agreements are hereby incorporated by reference and shall become a part of this Agreement as if fully set forth herein. 11. Adherence to Law Consultant shall adhere to all applicable federal and state laws, including but not limited to laws, rules, regulations, and policies concerning employer and employee relationships, workers' compensation, and minimum and prevailing wage requirements. Any certificates, licenses or permits which Consultant is required by law to obtain or maintain in order to perform work described on Exhibit A, shall be obtained and maintained throughout the term ofthis Agreement. 12. Modification Any modification of the provisions of this Agreement shall not be enforceable unless reduced to writing and signed by both parties. A modification is a written document, contemporaneously executed by City and Consultant, which increases or decreases the cost to City over the agreed sum or changes or modifies the scope of service or time of Page 4 - Personal Services Contract , --_.,-" ----y--'----"._-,.._'~--,.,-"-"'--_."._--_._.,--- ATTACHMENT~ page.-S..- of 5 performance. No modification shall be binding unless executed in writing by Consultant and City. 13. Attorneys Fees In the event a suit or action is instituted to enforce any right guaranteed pursuant to this Agreement, the prevailing party shall be entitled to, in addition to the statutory costs and disbursements, a reasonable attorneys fee to be fixed by the trial and appellate courts respectively. 14. Integration This Agreement, including but not limited to Exhibits and Consultant's proposal submitted to City contains the entire and integrated agreement between the parties and supersedes all prior written or oral discussions, representations or agreements. In case of conflict among these documents the provisions of this Agreement shall control. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly appointed officers on the date first indicated below. CITY OF WOODBURN FINANCIAL CONSULTING SOLUTIONS GROUP, INC. Richard Jennings, Mayor By: Edward Cebron, Vice-President By: Date: Date: ATTEST: Mary Tennant, City Recorder City of Woodburn Page 5 - Personal Services Contract '_~~'W''''''''''_'''''''''__"'''_;'-''-''-''''~''"'_-''''-''_'_^''''"''.~__~''''''~''_'.'_''''''''~.............."". EXHIBIT --A Page -1- of ..1) SCOPE OF WORK RATE STUDY AND SYSTEM DEVELOPMENT CHARGE REVIEW FOR WATER SERVICE May 18, 1999 This Scope of Work is between the City of Woodburn "CITY" and Financial Consulting Solutions Group, Inc. "CONSULTANT" for a project generally described as: A water rate study and system development charge review for City of Woodburn water service. TASK 1: PROJECT MANAGEMENT This task includes project coordination, administration and management. An initial meeting will be held with CITY and CONSULTANT staff to discuss project development, establish goals and objectives and define liaison and coordination procedures. Review meetings (up to a maximum of three) will be held to review problems, schedule, progress and budgets as appropriate. A work plan and schedule based on the contracted scope of work will be developed by the CONSULTANT and used for schedule and budget control throughout the project. Monthly progress reports will be prepared and included with the monthly invoice. TASK 2: REFINEMENT OF APPROACH Objectives Obtain data and refine approach 1 .._.._..~...,..._..._._....,_._....,._._._._._-' Task Descriptions EXH'B'l ~ Page of 1) 2.1 CONSULTANT will review the City Water Master Plan to determine extent of planned water system improvement needs. Treatment plant options are the major component of the master plan. The CITY will determine up to three options that will be used in formulation of the rate study and system development charge review. 2.2 CONSULTANT will provide CITY with a data request list to conduct the financial and water rate analyses. This list will consist of various operational and financial data to be used in the study. The CITY will assemble the available data and provide the requested data. 2.3 CONSULTANT will review the data and become familiar with the utility system as it pertains to the rate study and system development charge review. 2.4 CONSULTANT will review the existing rates for the utility and any prior rate studies for the City and/or City policies concerning rates. 2.5 CONSULTANT will meet with CITY staff to discuss the rate and system development charge related issues facing the City and to confirm the specific City objectives for the financial plan and the rate study. The CONSULTANT will discuss the technical approaches that could be used to develop the rates for the utility and will select one approach to be implemented. The technical approach to determining system development charges will also be selected. 2.6 CONSULTANT will prepare a memorandum summarizing the results of all Task 2 tasks. Product CONSULTANT will, upon completion of the analysis, submit a written technical memorandum No.1. 2 ~~,_""", '~_~_~~__~'""~.~'~_""~_""-""""I'-""'';'''_~M~~''_''''~_~"___~ TASK 3 DEVELOPMENT OF RATES AND CHARGES EXHIBIT A page.....::?L of 4) Objectives Develop rate and system development charges that reflect current costs and projected improvement costs. Task Descriptions 3.1 CONSULTANT will prepare a data request list for any additional information that may be needed to implement the approaches selected in Task 2.5. The CITY will collect the available data. The CITY and the CONSULTANT agree that the City's responsibility for data collection shall be limited to assembling and providing existing information that may be obtainable from the City's database software, existing information reports, and other readily usable sources. The CITY shall not be required to generate new information that does not already exist in its records. The CITY and CONSULTANT staffs will discuss and work to resolve any questions of data that may be difficult to collect or unavailable. 3.2 CONSULTANT will project revenue requirements (i.e., system costs) for the water system for the next 10 years. Nonrate revenues will also be projected for this period. Regulatory requirements and the Water Master Plan results will be considered in formulating these projections. Included in this task will be a review of the options for financing system improvements and a recommendation of which alternative to implement. 3.3 CONSULTANT will allocate the projected revenue requirements for the next 3 years to the relevant functional parameters for the utility and then allocated the costs by parameter to customer classes. The functional parameter for the water system will include system flow and customer services. The allocation procedures will be performed in conformance with applicable federal regulations and accepted cost-of- service principles. Any non cost-of-service policies (i.e. subsidies, penalty charges, special discounts, etc.) will be included only as directed by the CITY. Customer classes will include both retail and wholesale users. 3 '''-'_..-r-''--~c'',--,-,-,_.,-,_."",,--,,--- 3.4 CONSULTANT will develop two rate alternatives. EXHIBIJr~ Page of ~ Rate alternatives could include differing financing methods for identified capital improvements, differing customer classification groupings, and/or differing rate structures (e.g., flat rates, uniform volume rates, declining block rates). The CITY and CONSULTANT understand that the purpose of developing rate alternatives is to provide the City flexibility in the rates it considers for implementation, given the advantages and disadvantages of the various options. All rate alternatives will be consistent with cost-of- service principles, unless direction other wise is given by the CITY. Additional alternatives beyond the two provided for the City shall be considered beyond the scope of this agreement and subject to further negotiations. Rate alternatives shall be defined and differences in rate structure or ra.te methodology shall be considered as alternatives unless such modifications require an additional draft report or an additional final report. The CONSULTANT will also calculate one system development charge alternative for the utility. These development charges will be determined using the methodology selected in Tasks 2.5 and 3.5. 3.5 CONSULTANT will determine system development charges for the utility. The charges will be determined in accordance with current State of Oregon legislation specifying the requirements for these charges and the options on which they are based. The CITY has developed and implemented water system development charge methodology. The selected CONSU L T ANT will review the current methodology and review options for modification of the system development charge for water with the CITY and select the option most appropriate for the City's circumstances. 3.6 CONSULTANT will complete a rate and development charge updating model and a user manual for the utility. The model will operate on IBM-compatible hardware and Corel software. The CITY will provide its own hardware and software, and the CONSULTANT will provide the model files on diskettes. The CONSULTANT will conduct a training session on the use of these models for designated city staff and provide two copies of the user manual. 3. 7 CONSULTANT will prepare 10 copies of a draft report for the CITY to review. 4 .-,-,--- ''---r- ..".-.,", .,'."..." '"--''-''' ,-, ,-",--,.-,,,-,-.. . EXHIBI3--A Page of 5 3.8 CONSULTANT will prepare 20 copies of a final report. Approximately 2 weeks after receiving CITY comments on the draft report, the CONSULTANT will prepare and deliver 20 copies of the final report. 3.9 CONSULTANT will make three formal presentations of study results. It is anticipated that presentations will be at: . Two Water Master Plan Committee meetings. . An afternoon to evening public meeting on water system treatment options, water rates and system development charge review. · A City Council Meeting. The CONSULTANT will provide the presentation materials (e.g., overheads, flipcharts, slides) to be used in the presentations, and the CITY will provide any presentation materials it may require for presentation participation by its staff (if any). Additional presentations, if requested by the CITY, will be considered beyond the scope of services and fee agreement for this contract. Product CONSULTANT will, upon completion of the Task 3 deliver 20 copies of the final report to the CITY. 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