HomeMy WebLinkAbout5134 Contract Number. 5134
Vendor FCS GROUP
Subject PSA -- Utilities Rate Study
Department: Public Works
File Class: LEG 12 -1
Begin Date: 5/16/2012
End Date. 12/31/2013
Review Date: 9/30/2013
Vault Date 2014
Comments: MOU 2/13/13
®:O)FCSGROUP Memorandum
Solutions-Oriented Consulting
To: Becky Hasart, City of Bremerton; Director of Financial Services Date: February 13, 2013
From: Angie Sanchez Virnoche, FCS GROUP; Principal/Project Manager
RR: Utilities Rate Study Budget Authorization Request
The City has requested additional services related to the Utilities Rate Study. In addition, during the note
study process there were additional analyses and meetings requested that were not part of the original
scope of services. The City has asked that we identify the additional services and the budget that will be
required to complete the study. The additional services requested include:
• Two (2) Additional Workshops (attendance and materials)
• Open House (attendance and materials)
• Chamber meeting (attendance and material)
• Sensitivity /Additional Analyses - Additional financial plan alternatives for PILOT, sewer rate increase
timing, alternative capital, debt alternatives, low income memo to council, delayed wastewater
increase, outside city multiplier analysis, calculate each system's replacement cost , depreciation v.
pay as you go funding analysis, neighboring utility bill comparisons, bill frequencies for multi - family
and non - residential, additional water rate designs. The original budget listed an estimate of $6,660 for
sensitivity analyses. This was put on hold until written authorization The proposed budget is slightly
above this original estimated amount.
• Communications Plan — This task did not specify a bill calculator tool, but this is one of the tools
proposed for effective ratepayer engagement. The calculator format and logistics are taking more time
than originally envisioned due to format limitations of the website and additional input from
staWCouncil/UAC (bill image).
The Agreement, Section III Compensation, identifies a not to exceed amount for the Utilities Rate Study
of $150,230. The original scope of services authorized the Financial Chapter of the Water System Plan
and Conduct Benchmarking Analysis from Task 5 Other Services with Written Authorization leaving
approximately $32,600 under this task. The Agreement requires that any modification be in writing and
signed by bath parties. This budget authonzation request is to allow use of $23,000 of the available Task 5
budget to cover the additional services detailed above. The remaining budget under Task 5 will be $9,600.
The budget identified is our best estimate of the additional cost that may be required to complete the
project. If you have any questions or need additional information, please do not hesitate to contact me at
(425) 867- 1802 x230
Am Heads lxaltoro
Redmond Town Center Redmond, WA 1425.867 1802
7525166^ Ave NE- Suite x215 PorHond, OR 1503.841 6543
Redmond, Waswaion 98052 Son Francisco, CA 415.445.8947
February 13, 2014
City of Bremerton UtiiPities Rate Study
Budget Authorization Request
The parties hereto have accepted this budget authorization request, which will become effective upon the
execution by the City.
City of Bremerton FCS GROUP
By: By: P A-W
Title0t0tC69 F&6 Sde Title:
Print Name._ Ca iAtbA4 Print Name: r V/1 -
Date: /3 W4 '/ Date:
000' FCS GROUP Pa 2
February 13, 2014
City of Bremerton Utilities Rate Study
Budget Authorization Request
Detailed Budget Authorization Request
Hourt Rates:
ia*
A) Meetings (Motenal and Meeting Time)
- December 12 Joint UAC /Council Workshop 8 10 - 18 3,000
- January 9 Joint UAC /Cou Workshop 8 8 - 16 2720
- February Open House - New Presentation 10 14 - 24 3,960
- February 19 Chamber Meeting 6 12 - 18 2,880
B) Sensitivity /AdcHonalAnalysis is 28 - 43 6,920
C Communications Plan 6 16 22 3.440
iOTALADDENDUM REQUBT 1 53 as r 119 S IM
° ee� K S GROUP Page 3
Contract Number
Vendor
Sub�ect.
Department:
File Class.
Begin Date•
End Date:
Review Date:�
Vault Date:
5134
FCS GROUP
PSA -- Utilities Rate Study
Public Works
LEG 12-1
5/16I2012
10/9/2012
10/1/2012
2014
Comments :
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PROFESSIONAL SERVICES AGREEMENT
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Utilities Rate Study
The Crty of Bremerton ("City") and FCS Group ("Consultant"), referred to collectively
as the "Parties," enter mto the following Agreement for professional serv�ces
I. Scope: The Consultant agrees to perform the services more specifically descnbed in the
Scope of Work, dated April 2012, includmg any attachments thereto , attached hereto as Exhibit
A, which is incorporated by reference herein The Scope of Work may be modified only
pursuant to Section VII G of this Agreement If the Scope of Work provides for unspecified
additional services such services shall only be performed upon the express wntten request of the
City Consultant further represents that the services furtushed under ttus Agreement will be
performed in accordance wrth generally accepted professional practices m effect at the time such
services are performed ,
II. Term: The City and the Consultant agree thax work will begin on the tasks descnbed m
Exhibrt A immediately upon execution of tlus Agreement The parnes agree that the work
described m Extubrt A is to be completed as provided for in the work schedule attached hereto as
Extubrt B, provided however, that addrtional time shall be granted by the City for excusable
delays or extra work as provided for in section IX (A) of this agreement
III. Compensation: In consideration of the services provided pursuant to this Agreement, the
City shall pay Consultant m an amount not to exceed $ 150,230 Consultant's charges and bills
shall conform to the fee schedule attached hereto as Extubit C and mcorporated herem by tlus
reference
The Consultant shall submrt regulaz billing statements detasling work performed and
amount charged on each task or portion thereof The descnptions shall conform to and fall
wrthm the categones set out xn the Scope of Work and/or Fee Schedule Upon receipt of a
confornung billing statement, the Crty sha11 promptly process payment PROVIDED,
HOWEVER, the Crty reserves the nght to pnoritize scoped work and accelerate and/or delay
work tasks under the time frame set forth in Section II herem The Consultant's labor rates and
bilhng fees shall be as dehneated in Exlubrt C
Consultant shall not perform work beyond the Scope of Work, nor sha11 be compensated
for such work, unless the Scope of Work or amount of compensation is modified pursuant to tlus
Agreement Consultant shall only be compensated for addirional sernces if requested pwsuant
to Sechon I and, if not otherwise provxded, such compensation shall be in accordance with
Exhibit C
If a billing statement does not conform to this Agreement, the City may withhold
payment until the statement is brought mto compliance Such wrthholdmg does not relieve
Consultant of its obligations under this Agreement
Bremerton/FCS Group
Utilities Rate Studv
Page 1 of 13
IV. Relationship of Parties: Consultant represents that it is skilled m the matters addressed
m the Scope of Work and is perfornung independent functions and responsibilities wrttun rts
fietd of expertise Consultant and its personnel are independent Consultants and not employees
of the City Consultant and rts personnel have no authonty to bind the City or to control the
City's employees and other Consultants None of the benefits provided by the City to rts
employees, including, but not limrted to, compensation, msurance, and unemployment msurance
are available from the City to the employees, agents, representatives, or sub-Consultants of the
Consultant Consultant v�nll be solely and entuely responsible for rts acts and for the acts of
Consultant's agents, employees, representatives and sub-Consultants during the perFormance of
tlus Agreement The Crty may, during the term of this Agreement, engage other mdependent
Consultants to perform the same or similar work
As an independent Consultant, Consultant is responsible for its own management The
Crty's admimstration and enforcement of this Agreement shall not be deemed an exercise of
managenal control over Consultant or rts personnel
As an mdependent Consultant, Consultant is responsible for payment of a1I taxes and
licensing fees necessary to perform rts obligations under tlus Agreement These taxes and fees
include but aze not lirtuted to State mdustrial insurance, Business & Occupation, State
professional licensmg, and City business licensing If any taaces or fees due the Crty have been
declazed delmquent, the Crty may withhold the dehnyuent amount, plus any addihonal charges
arismg from the delmquency, from any payments due Consultant
V. Indemnification: Consultant shall defend, mdemmfy and hold the Crty, its officers,
officials, employees, agents and volunteers harmless from any and all cla�ms, in�unes, damages,
losses or suits, mcluding a11 legal costs and attorney fees, arismg out of or in connection with the
performance of tivs Agreement, e�ccept for that portion of the in�unes and damages caused by the
City's sole negligence
The Crty's review or acceptance of any of the work when completed shall not be grounds
to avoid any of these covenams of indemrufication
Should a court of competent jurisdiction determine that this Agreement is sub�ect to
RCW 4 24 115, then, in the event of liabilrty for damages azising out of bodily mjury to persons
or damages to property caused by or resulting from the concurrent negligence of the Consultant
and the City, its officers, officials, employees, agents and volunteers, the Consultant's liabilrty
hereunder sha11 be only to the extent of the Consultant's neghgence
IT IS FUR1'HER SPECIFICALLY AND EXPRE5SLY UNDERSTQOD THAT TI�
INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSLJLTANT'S
WAIVER OF I�V1M[1NITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY
FOR THE PURPOSES OF THIS INDEMN�ICATION 'THE PARTIES FUR'THER
ACKNOWLEDGE THAT TI�Y HAVE MUTUALLY NEGOTIATED THIS WAIVER
The prov�sions of ttus section shall survive the e�iration or ternunation of ttus Agreement
Bremerton/FCS Group
�.Thlrties Rate Study
Page 2 of 13
VI. Insurance: The Consultant shall procure and mamtam for the durahon of the Agreement,
insurance agamst claims for m�uries to persons or damage to property which may arise from or m
connection wrth the performance of the work hereunder by the Consultant, rts agents,
representat�ves, employees, sub-consultants or sub-Consultants
Before beguinmg work on the pro�ect descnbed m tlus Agreement, the Consultant sha11
provide a Certificate of Insurance evidencin�
1. Automobile Liabilitv msurance with limrts no less than $1,000,000 combined smgle
limit per accident for bodily m�ury and property damage, and
2. Commercial Generat Liabilitv insurance wntten on an occunence basis wrth limits no
less than $1,000,000 combined single limit per occurrence and general aggregate for
personal m�ury, bodily mjury and property damage Coverage shall include but not be
limrted to blanket contractual, products/completed aperations/broad form property
damage, explosion, collapse and underground (XCI� if applica.ble, and employer's
liability, and
3. Egcess Liabilitv insurance wrth limrts not less than 1,000,000 limit per occurrence and
aggregate
4. Professional Liabilitv msurance with hmrts no less than $1,000,000 limit per
occurrence/claim
Any payment of deductible or self insured retent�on shall be the sole responsibility of the
Consultant
' All required policies shall be provided on an"occurrence" basis except profess�onal
liability insurance (if requued), wluch may be provided on a"cla�ms-made" basis
The City sha11 be named as an additional msured on the Commercial General Liabilrty
msurance policy, as respects work performed by or on behalf of the Consultant and a copy of an
endorsement that is acceptable to the Crty, wluch names the City as an addrtional msured shall be
attached to the Certificate of Insurance The City reserves the right to receive a certafied copy of
all the required insurance policies and endorsements The City further reserves the right to reject
any unacceptable pohcies and/or endorsements
The Consultant's Commercial General Liabilrty msurance sha11 contam a clause stat�ng
that coverage shall apply separately to each insured against whom cla.im is made or suit is
brought, except wrth respects to the limits of the msurer's liabilrty
The Consultant's mswance sha11 be pnmary insurance as respects the Crty and rt shall be
an affirmative obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473-
5161, or by certified mvl, return receipt requested to City of Bremerton, attn Risk Management,
345 6�` Street, Suite 600, Bremerton, WA 98337 witlun two days of the cancellation, suspension
or substantive change of any msurance pohcy set out herein, and fa�lure to do so shall be
construed to be a breach of this Agreement
BremertonlFCS Group
Utilities Rate Studv
Page 3 of 13
�
The Crty also reserves its unqualified right to requue at any time and for any reason,
proof of coverage in the form of a duplicate of the msurance policy wrth all endorsements as
evidence of coverage
VII. General Conditions:
A R orts and Informat�on When requested by the Crty, Consultant sha11 fiumsh
penodic reports and documents on matters covered by tlus Ageement The reports and
documents shall be furnished m the ttme a.nd form requested Consultant shall mamtam
account�ng records in accordance with Generally Accepted Accounting Principles (GAAP) to
substantiate all billed amounts
B Ownerstun and Use of Records and Documents Ongmal documents, dravv�ngs,
designs and reports, mcluding those m electronic format, developed under tlus Agreement are the
property of the Crty All written mformation submitted by the City to the Consultant in
connection with the services performed by the Consultant under tlus Agreement will be
safeguarded by the Consultant to at least the same extent as the Consultant safeguards hke
mformation relatmg to its own busmess If such information is publicly available or is already m
Consultant's possession or known to rt, or is rightfully obtained by the Consultant from thu�d
parties, Consultant sha11 bear no responsibility for its disclosure, inadvertent or otherwise
All data, documents and files created by Consultant under tivs Agreement may be stored
at Consultant's office m Redmond, Waslungton Consultant shall make such data, documents,
and files available to the City upon its request at alI reasonable t�mes for the purpose of edrtmg,
modifying and updatmg as necessary until such time as the Crty is capable of storing such
information m the City's offices Duplicate copies of this information sha11 be provided to the
Crty upon rts request, and at reasonable cost
All documents, mcludmg all reports, drawmgs, specifications, computer software or other
items prepared or furnished by Consultant pursuant to t}us Agreement, are instruments of service
wrth respect to the pro�ect and aze the property of the Crty Any reuse by the City for other than
the specific purpose mtended will be at City's sole risk
C Work Performed at Consultant's Risk Consultant shall take a11 precautions necessary
and shall be responsible for the safety of its employees, agents, and sub-consultants m the
performance of the work hereunder and sha11 utilize all protection necessary for that purpose
All work shall be done at Consultant's own nsk, and Consultant sha11 be responsible for any loss
of or damage to matenals, tools, or other articles used or held for use m connection with the
work
D Place of Work The Consultant shall perform the work authorized under this
Agreement at its offices m Redmond, Washmgton Meetmgs with the City staff as described m
Exhibit A, Scope of Work, shall take place at the Crty's offices, or at locations mutually agreed
upon by the parties
BremertonlFCS Group
Utilities Rate Study
Page 4 of 13
E Ennre Agreement Tlus Agreement and rts Extubrts constrtutes the emue agreement
between the Parties, and the Parties acknowledge that there are no other agreements, wntten or
ora1, that have not been set forth m the text of this Agreement
F 5everabilrtv Should any part of this Agreement be found void, the balance of the
Agreement shall remam in full force and effect
G Modification Tlus Agreement may only be modified by vrmtten instrument signed by
both Parties
H Wntten Not�ces All communications regarding ttus A�reement sha11 be sent to the
parties at the addresses l�sted below by reg�stered or lst class ma.il, or by personal service, and
shall be deemed sufficiently given if sent to the addressee at the address sta.ted in ttus Agreement
or such other address as may be hereafter specified in writing
Crty Address
Director, Public Works and Utilrties
100 Oyster Bay Avenue N
Bremerton, WA 98312
Consultant Address
Pro�ect Manager, FCS Group
Redmond Town Center Suite D-215
7525 166�' Ave NE
Redmond, WA 98052
I Wa�ver Fa�lure to enforce any' provision of this Agreement shall not be deemed a
waiver of that provision Waiver of any nght or power ansing out of ttus Agreement shall not be
deemed wa.iver of any other right or power
J Non-Waiver of Breach The failure of the Crty to msist upon strict performance of any
of the covenants and agreements contamed herem, or to exercise any option herem conferred in
one or more mstances shall not be construed to be a wa�ver or relmquishment of sa�d covenants,
agreements or options, and the same shall be and remam m full force and effect
K Compliance with La,ws Consultant shall comply wrth all applicable Federal, State,
and local laws m perfornung rts obligations under this Agreement
L Choice of La.w and Venue This Agreement sha11 be mterpreted accordmg to the laws
of the State of Washington Any judicial�action to resolve disputes arising out of this Agreement
sha11 be brought m Krtsap County Supenor Court
M Attorneys' Fees In the event of litigation to enforce any of the terms or provisions
herein, each party shall pay a11 its own costs and attorney's fees
N Assignment Any assignment of this agreement by the Comractor without the wntten
consent of the Crty shall be void
VIII. Nondiscrimination: Consultant shall not discnminate in employment or services to the
public on the basis of race, color, nataonal origin, sex, religion, age, marital status, disa.bilrty, or
sexual orientation except for employment actions based on bona fide occupational qualification
Bremerton/FCS Group
Utilrties Ra.te Studv
Page 5 of 13
IX. �ermination: This Agreement shall rema.m m force until completion and acceptance of
the services, termmated by wntten instrument upon mutual consent, or by the City of Bremerton
for convemence Ttus Agreement may be immediately termmated for cause by a Party if the
other Party substantially fails to perform through no fault of the terminating Party, and the non-
perfornung Party does not commence correctaon of the failwe of performance wrtlun thirty (30)
days of the terminatang Party's sending notice to the non-performmg Party Any Notice by
Consultant sha11 mclude a report showmg the status of all items listed m the Scope of Work
cunent through the teimmation date
If the Crty receives reimbursement by any federal, state, or other source for work descnbed in
Section I herem, and that funding is withdrawn, reduced or limited m any way, or the pro�ect is
cancelled or substantially reduced after the execution date of tlus Agreement and pnor to the
completion of the work, the Crty may summarily terminate this Agreement
A Excusable Dela�s The right of Consultant to proceed sha11 not be ternunated nor shall
Consultant be charged with liquidated damages for any delays in the completion of the work due
to 1) any acts of the federal government m controllmg, restnctmg, or requisrtiorung matenals,
equipment, tools, or labor by reason of war, national defense, or other national emergency, 2)
any acts of the Crty, its consultants, or other public agencies causing such delay, and 3) causes
not reasonably foreseeable by the parties at the t�me of the execution of the Agreement that are
beyond the control and without the fault or negligence of the Consultant, including, but not
restncted to, acts of God, fires, floods, stnkes, or weather of unusual seventy PROVIDED,
HOWEVER, that the ConsuItant must promptly notify the Crty wittun ten (10) calendaz days in
wntmg of the cause of the delay If, on the basis of the facts and the terms of this Agreement,
the delay is properly excusable, the Crty shall, m wnting, extend the time for completmg the
work for a penod of rime commensurate wrth the penod of excusable delay
B. Rights 7�on Termmation. In the event of termination, the City shall pay for all
services performed by the Consultant to the effective date of ternvnation, as described on a final
mvoice submitted to the Crty After termmation, the City may take possession of a11 records and
data wrthm the Consultant's possession pertainmg to tlus project which may be used by the City
without restnction Any such use not related to the pro�ect wtuch Gonsultant was contracted to
perform sha11 be wrthout liabilrty or legal exposure to the Consultant
CITY OF BREMERTON
By �' Z
�ts �
Date � / — � L
�y �
rts _
Date
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Ap s to form
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B mert n Crty Attorney
R U.EGAL\Co�tracts�F'ORMS�Professional Serv�ces Agreement Fotm (2003) doc
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Bremerton/FCS Group
Utilities Rate Studv
Page 6 of 13
Ctty of Bremerton
UTILI'TY 1ZATE STUDY
Exhibit A: Scope of Work
BACK�ROUND
The Crty of Bremerton is conducting a comprehensive rate study for its three enterpnse fund
utilities water, wastewater, and stormwater These utilrties are managed by the Department of
Public Works and Utilrties The last rate study was completed in 2005 A steenng committee of
city staff and rate payers has been assembled to assist with tlus pro�ect
The purpose of the rate study is to independently evaluate Bremerton's e�ustmg utility rates and
provide recommendations The goal of the study is to adequately fund ut�lrty operations, caprtal
costs, and bonded debt wtule mmimizing rates to the greatest degree possible
The study will take a business approach based on a comprehensive review of Bremerton's ut�lrty
funds and budgets, utility comprehensive plans, customer classes, current usage data,
benchmarlcmg, future planned growth of the Crty pursuant to comprehensive planiung and any
other information deemed necessary
It is desired that Task l, the customer rate component of this study, be completed before
October, 2012
STUDY OBJECTIVES
1 Provide a companson of cunent utility system metrics (operations, caprtal impravements,
bonded debt, envuonmental re$ulation compliance, and resource management) aga.inst
appropnate industry benchmarks
2 Identify those portions of utilrty system revenues that fund utilrty system costs
3 Recommend baselme rate and fee structure reqiured to fund utility system costs as well as
adjustments to rates and fees needed to fund other costs
4 Recommend strategies to effectively commurucate with all ratepayers about utility systems
value and costs
SCOPE OF WORK
TASK 1 CONDUCT RATE ANAI..YSIS
a) Deteimine Revenue Requirements
• Establish a susta.inable, 6-yeaz rate strategy to meet the pro�ected total financial
needs of each utility through the generation of sufficient ongomg revenue wrth
mmimal reliance on reserves
Bremerton/FCS Group
Utilities Rate Studv
Page 7 of 13
• Vandate detailed customer billing statistics, for each utility, that will become
the basis for the revenue projection, cost allocation and altemative rate
designs
• Current and future cost of providmg utilrty services in accordance wrth
established and ant�cipated standards and regulations
• Projected demands
• Age and condrtion of system and need fully to fund long-term caprtal
improvementlreplacements for supply, treatment, and distribution/collections
mfrastructure
• Funding requuements for a11 current long-term habilities and debt obligations
(bond and loans)
• Impact of upcoming water qualrty and envu�onmental regulations, mcluding
compliance wrth NPDES Phase II update implementation (LID
considerations, program management, and inspections)
b) Conduct Cost of Service Analysis — sewer only
Establish the necessary amount of annual revenue to be recovered from each rate class
Establ�sh a defensible bas�s for assigmng cost shares and equrty for sewer system
customers
c) Present Three Recommended Rate Design Options
Present three rate structure alternatives and phasing strategies considenng the following
factors
• Multi-tier water rate stnucture to effectively promote conservation
• Develop at least one rate and fee structure alternative with a stated goal to
leverage commercial and industrial development and investment in the City,
mcluding the South Krtsap Industrial Area
• Consistency with mdustry practice for utility rates in Washmgton
• Ra.te structures that are easy to admimster and understand
• The City of Bremerton's existmg automated billing system should be able to
handle any proposed rate structure
• Develop a wastewater and stormwater fee structure that addresses new low
impact and conservat�on construction techmques mcluding pervious
pavement, raznwater harvestmg, vegetated roofs, etc
• Assess the equrty of recommended utilrty rates for all types of property
ownerslup
• Recommend rates for customers outside of city limits to maximize long-term
City benefits
Bremerton/FCS Crroup
Utilities Rate Study
Page 8 of 13
Include a comprehensive summary of recommended rate structures. Assess performance
of each recommended rate structure agasnst current rate structure performance as basehne
and provide recommendation on prefened rate structure
Provide data supportmg conclusions and observations made for each of the areas above
and site wrtlun study
TASK 2 RE-EVALUATE GENERAL FACILITIES FEE STRUCTURE FOR SEWEIt
Evaluate the current General Facility Charge methodologies to streamlme and enswe
equrty for sewer customers Evaluate re-instatement of front footage charge separate the
cuirent General Facility Charge into two separate fees, one that pays for connection to up
and downstream system improvements (e g general facilrties fee,) and one that pays for
infrastructure fronting the praperty
TASK 3 COMMUIVICATIONS PLAN
Prepare a commumcation plan with recommendations to ensure effect�ve rate payer
engagement Stakeholders include elected officials, the steering committee, rate payers,
businesses, service azea residents, and crty employees Provide methods for
commumcating the value of utility services and utility costs which could inctude Iayout
of the urihty bill, and messaging for brochures, websrte, emails, news releases, and public
meetings Assess ease of commurucation associated vv�th each recommended rate
structure Recommend t�mmg for each communicarion technique and identify
responsibilrties
TASK 4 PROJECT MANAGEMENT
a) Pro�ect Team
The mam FCS pro�ect team will be as follows
Angie Sanchez Vu FCS GROUP
7ohn Ghilarducci, FCS GROUP
Roger Fhnt, CHZM HII,L
Sergey Tarasov, FCS GROUP
Jenrufer Henke, CHZM HII.,L
These mdividuals will remam on Bremerton's rate study for the duration of the
pro�ect Should one of these mdividuals not be able to fulfill ttus commrtment,
theu replacement will need to be approved by Bremerton
b) Pro�ect Meet�ngs
• Meet or confer wrth staff as needed and attend meetings with the City Council
and Steenng Committee to present the intenm status of the study and obtain
their mput Plan for a maximum of three staff/steenng committee meetings
and two council meetmgs
BremertonlFCS Group
Utilrties Rate Studv
Page 9 of 13
. Attend one open house-type meetmg for the public Tlvs will l�kely be a late
afternoon/early evening event
• Present a 1-hour educational traimng for staff, elected officials, and steenng
committee on the basics of rate making and the methodology used for
Bremerton's pro�ect Th�s will likely be a late afternoon/early evemng event
c) Deliverables
• Submrt automated customer "what-if' mterface
• Submit final ratemakmg spreadsheet
• Submrt draft and final reports m electroruc format Final Report to have an
Executive Summary
TASK 5 OTHER S�RVICES BY WRITTEN AU�"HORIZATION ONLY
a) Review of Other Service Charges
Assess existmg customer service fee structure and identify other potential areas
for service and system fee changes (plan reviews, water service shut-offs, etc )
and recommend changes
b) Sensrtivity Analysis
Assess the abilrty of the revenue stream generated by the recommended rate
structures to contmue to fully fund ut�lrty system costs and other costs under the
impacts of future water quality and envuonmental regulations and standards
Assessment is to mclude a sensrtivrty analysis where the long-term revenue
generated under each alternative as well as the cunent rate structure sha11 be
illustrated when confronted with the impacts of growth, drought, mandated
requuements, and major system improvements (up to 4 sensrtivrty analyses for
each utility)
c) Prepare Financial Chapter in the Water System Plan
The WSP update is being prepared dunng 2012 The first draft of tlus chapter
will be needed by July, 2012
b) Supplemental Scope Items
Durmg this pro�ect, other related scope items may arise and the consultant may be
asked to provide assistance to the crty by written request only A total of $15,000
will be allocated for tlus potential work
d) Detemune Appropnate Response to Lane vs. City Of Seattle
Tl�us lawsurt determined that certun fire-fightmg capabilities of a water system
are general government functions, not to be borne by the water utility Determme
how this impacts the Bremerton Water Utility and what changes m accountmg are
Bremerton/FCS Group
Utilrties Rate Studv
Page 10 of 13
needed both m the City lim�ts and for the pomon of ow system in the City of Part
Orchard and m unincorporated Krtsap County
, e) Conduct Benchmarkmg Analysis
Develop a qualitative comparative assessment of orgatuzational performance as
compared to other utilities similar m size and complexity to Bremerton's utilities
Identify and evaluate key metncs for comparison Bremerton has panc�ipated in the
AWWA QualServe program
SERVICES TO BE PRUVIDED BY THE CITY OF BREMERTON
The services to be provided by the Crty of Bremerton mclude, but are not necessarily
limrted to the following
• Furnish a11 reasonably available records and information, including financial
reports, budgets, and consumption data m a timely manner
• Provide a loaner copy of each of the utihty planrung documents
• Provide staff support and assistance as required and agreed to m advance of
study
• Review submitted analysis and provide feedback as specified
• Attend project review meetmgs
Bremerton/FCS Group
Uhlities Rate Studv
Page 11 of 13
Crty of Bremerton '
UTILITY RATE STUDY
Exhibit B: Schedule
Gty of Bremerton Draft UUl�ty Rate Study
P�o�ect Schedule
5/1 5/8 5/IS 5/22 5/29 6/S 6/12 6/19 6/26 7/3 7/10 7/17 7/24 7/31 8/7 8/14 8/21 8/28 9/4 9/11 9/18 9/25 10/2 10/9
Data Collection
Revenue Reqwrement
2 Benchmarking
Cost of Serv�ce
Rate Des�gn
Generel FanlityCharges
Other Service Charges
Documentat�on
Mcetings
Kickoff
Mdestone 1 Rcwew
Mdestone 2 Review ,
Mdestone 3 Review I
Bremerton/FCS Group
Utilities Rate Studv
Page 12 of 13
City of Bremerton
UTILITY RAT� STiJllY
Exhibit C: Budget
mk �r��� �g� , _s rv,w '� a
� eS'� e4ft+,.lt�J � m ,
2 amD`a P�. d4' S. n P t�"'� ° '""a ' 7Y+ 7'F-"� G. �,+,fip
nour BRBn Rates. @, � � a B k g, ��, �y.� 8 �, ��
mk 1 !d� Anal►wb
a)DefemrneRev��eReq�tremenis �g pq u qp 8 �� s p �
Cusfomersfattsircswftlohon - � p bp � 9 �
Capifal Fundklg Plan - B 36 - - 44 6640
b) Caxl�ct Cost of $eMce Anayas (sewer onry) 8 24 10 42 5960
c R fe Des n o tlais water mvB� earoll �tilihes 4 I6 40 32 92 12b40
Total Rate Maysls � 60 175 142 8
405 ; SSA60
wk 2 Rs Evduofe IismrN faeply /ve
Dovelop Alternoflve rharge asseament mefhod fui sewer ony 4 8 p 32 S 5 240
mt E Commu�kmbro Plmi 24 24 S 4.800
mk 4 Prysef MmwysmeM
bI Praect TMeetl ��agement) S
f10S
I Kick Off M99hr�g 4 d 6
I Ed�cation Traning �COmbine wNh klckol� 6 � I 4 S 2,4gp
I Open Ho�se (uftantlance no maferiaq _ _
� 1270
- 2 ComrNftee Meel4�gs �Rev Req and Rate Design� 12 20 3 35 5AI0
2 Co�ndl Maetvgs (st�dy sesslon, hornmg� g p
c) Dahverobles 2 ' 30 4540
- A�fomofetl lvtqf IP InteRaoa d 16 p 3 �
- Ratarrqkhg Spreadsheeh 10 - 10 1 A00
- ExecufNe Svmmary oPflntivigs - 4 14 4 ' ' ' 22 3,1 d0
YB 17D 599
PercoM W Total 2 6
tRporoe�
s i.eoo
� A E m � I 0 0 0 9
mk 6 qhsr 7sMaef by WAMn AuMa�b�
a� ReNew ot Other $eMCes and Chaiges 4 38 42 $ 6 I ZO
b) Ser�NvBy Motysis 2 a I6 7a 50 6.660
cl PreDare Fmondal Chaofer In fhe WaterSysiam Phn 8 40 a 52 S.BBD
d) DeterMne Response to Lane vs Seatfle (water only) 2 B ZO
1 Conduct Benchma�kug nrwrys�s 30 4s2o
Collect/Re�iew q�alServe Dato 4 24 6 34 $ S.B60
Updafe BCndimorking ' 4 24 8 1 37 6500
SuPPOrI Rale Devebpmanl ' - 2 8 - 10 1 950
Meeiings (kick off meetirg affentlance/I Commtttee meeting) 10 ld 24 4 9a0
Deliverables Executive S�mmary of Hntlings 4 8 4 2 I8 3100
Fxpenses
I .000
TOtOI BCnUtRqrkVg ' 24 78 12 9 123 s yf,3$p
Su IementalSoo ItAma os uested
S 15A00
Bremerton/FCS Group
Utilities Rate Studv
Page 13 of 13