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HomeMy WebLinkAbout5207 Contract Number: 5207 Vendor: BERK & ASSOCIATES, INC Subject: PSA Gorst Annexation Fiscal Analysis Department: Finance File Class: LEG 12 -1 Begin Date: 2/22/2013 End Date: Review Date: 9/1/2015 Vault Date: Comments: Amendment #1 4/14/14 5 CONTRACT MODIFICATION AGREEMENT NO.1 BETWEEN THE CITY OF BREMERTON AND BERK & Associates, Inc. PROJECT Gorst Annexation Fiscal Analysis CONSULTANT BERK & Associates Inc_ DATE Aril 10 2014 THIS CONTRACT MODIFICATION AGREEMENT SPECIFICALLY AMENDS THE AG (the "Contract ") entered into between the City of Bremerton nd BERK & Associates, Inc. on February 22, 2013 and as modified red on r 0?Q All provisions in the Contract shall remain in full force and effect except as expressly modified by this document. For valuable consideration and by mutual consent of the parties, the modifications to the Contract are as follows: I. Section I. Scope; is modified as follows: See Amended Scope of Work attached as Exhibit A. Section III. Compensation; is modified as follows: The original contract amount was an amount not to exceed Fifteen Thousand Dollars ($15,000.00). The City shall pay the Consultant for the additional work described above an amount not to exceed Two Thousand Eight Hundred Dollars ($2,800.00) for a total amended contract amount of Seventeen Thousand Eight Hundred Dollars ($17,800.00), including this Contract Modification. II. Consultant accepts all requirements of this Contract Modification by endorsing below. Consultant further agrees that this Contract Modification constitutes full and final settlement of all of the Consultant's claims for contract time and for all costs of any kind, including without limitation, costs of delays related to any work either covered or affected by this Contract Modification, claims related to on -site or home office overhead, or lost profits. This Contract Modification does not limit the City's right to bring a claim for past performance. The undersigned consultant approves the foregoing Contract Modification as to the changes, if any, in the contract price specified for each item, including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work due to said Contract Modification. This document will become it supplement of the contract and all provisions will apply hereto. It is understood that this Contract Modification shall be effective when approved by the City of Bremerton. BERK & Associates Contract Modification l Gorst Annexation Fiscal Analysis r The parties whose names appear below warrant that they are authorized to enter into a contract modification that is binding on the parties of this contract. In addition, Consultant warrants that it has or will inform the surety of this change, and shall take appropriate action to modify any bonds required under the contract to address this change. BERK & ASSOCIATES, INC. THE CITY OF BREMERTON By �� t Nd B P t i Its f jV4 ' ' r Its Ma DATE: 'T'I'C' �`T DATE: APPROVED AS TO ORM: ATTEST: 41- — r Bremerton City ey City Clerk NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: BERK & Associates, Inc. Andrea Spencer 2025 First Avenue, Suite 800 Director of Community Development Seattle, WA 98121 City of Bremerton 345 6' Street, Suite 600 Bremerton, WA 98337 BERK & Associates Contract Modification 2 Gorst Annexation Fiscal Analysis p. s EXHIBIT A - CONTRACT MODIFICATION BERK & ASSOCIATES GORST ANNEXATION FISCAL ANALYSIS April 2014 Contract Amendment This section outlines a contract amendment that would provide additional budget to support BERK in completing the following work on this project: Complete the Final Technical Memorandum. This contract amendment would provide additional budget for BERK to incorporate the City's comments on the Draft Technical Memorandum into a Final Technical Memorandum. The original budget for the technical memorandum was exhausted due to higher- than- expected level of effort around capital cost estimates with the City and the County, as well as an extended timeline for document completion. Attend and Present at a Bremerton City Council Meeting. The contract amendment would provide budget for BERK to attend a Bremerton City Council meeting and present the findings of the analysis. This effort was not part of the original scope. This budget would provide resources for BERK to prepare a presentation, as well as travel to and attend a council meeting. The following table summarizes the requested budget increase in order to complete the above tasks. All work will be billed on a time and materials basis with the total budget for this amendment not to exceed $2,800. The estimated distribution of effort is outlined in the exhibit below. Principal Senior Project Total Hours and Associate Associate Estimated Cost 2013 Hourly Rate 1 $250 115 75 Task Task 6: Additional Budget for Memorandum Completion Subtotal 0 8 2 10 1 70 Task 7: Presentation to city Council Subtotal 2 10 0 12 0 1,65 Total Estimated Hours 2 18 2 22 Cost (Hours *Rate) $500 $2,070 $150 L $2 720 Subtotal Consultant Cost $2,720 Project Expenses @ - 3% of project budget $80 Estimated Pro ect Total $2,800 BERK & Associates Contract Modification 3 Gorst Annexation Fiscal Analysis Contract Number: 5207 Vendor: BERK & ASSOCIATES, INC Subject: PSA Gorst Annexation Fiscal Analysis Department: Finance File Class: LEG 12 -1 Begin Date: 2/22/2013 End Date: Review Date: 9/1/2015 Vault Date: Comments: CONTRACT MODIFICATION AGREEMENT NO. I BETWEEN THE CITY OF BREMERTON AND BERK & Associates, Inc. PROJECT Gorst Annexation Fiscal Analysis CONSULTANT BERK & Associates, Inc. DATE _ April 10, 2014 THIS CONTRACT MODIFICATION AGREEMENT SPECIFICALLY AMENDS THE AGREEMENT (the "Contract ") entered into between the City of Brem and BERK & Associates, Inc. on February 22, 2013 and as modified on All provisions in the Contract shall remain in full force and effect except as expressly modified by this document. For valuable consideration and by mutual consent of the parties, the modifications to the Contract are as follows: I. Section 1. Scope; is modified as follows: See Amended Scope of Work attached as Exhibit A. Section III. Compensation; is modified as follows: The original contract amount was an amount not to exceed Fifteen Thousand Dollars ($15,000.00). The City shall pay the Consultant for the additional work described above an amount not to exceed Two Thousand Eight Hundred Dollars ($2,800.00) for a total amended contract amount of Seventeen Thousand Eight Hundred Dollars ($17,800.00), including this Contract Modification. H. Consultant accepts all requirements of this Contract Modification by endorsing below. Consultant further agrees that this Contract Modification constitutes full and final settlement of all of the Consultant's claims for contract time and for all costs of any kind, including without limitation, costs of delays related to any work either covered or affected by this Contract Modification, claims related to on -site or home office overhead, or lost profits. This Contract Modification does not limit the City's right to bring a claim for past performance. The undersigned consultant approves the foregoing Contract Modification as to the changes, if any, in the contract price specified for each item, including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work due to said Contract Modification. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that this Contract Modification shall be effective when approved by the City of Bremerton. BERK & Associates Contract Modification 1 Gorst Annexation Fiscal Analysis The parties whose names appear below warrant that they are authorized to enter into a contract modification that is binding on the parties of this contract. In addition, Consultant warrants that it has or will inform the surety of this change, and shall take appropriate action to modify any bonds required under the contract to address this change. BERK & ASSOCIATES, INC. THE CITY OF BREMERTON s By 1(. Q By Pa t Its ' V1VLu rMl Its Mav DATE: `C' `f DATE: 4 Ifo APPROVED AS TO RM: ATTEST: n— Bremerton City ey City Clerk NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: BERK & Associates, Inc. Andrea Spencer 2025 First Avenue, Suite 800 Director of Community Development Seattle, WA 98121 City of Bremerton 345 6 Street, Suite 600 Bremerton, WA 98337 BERK & Associates Contract Modification 2 Gorst Annexation Fiscal Analysis EXHIBIT A - CONTRACT MODIFICATION BERK & ASSOCIATES GORST ANNEXATION FISCAL ANALYSIS April 2014 Contract Amendment This section outlines a contract amendment that would provide additional budget to support BERK in completing the following work on this project: Complete the Final Technical Memorandum. This contract amendment would provide additional budget for BERK to incorporate the City's comments on the Draft Technical Memorandum into a Final Technical Memorandum. The original budget for the technical memorandum was exhausted due to higher -than- expected level of effort around capital cost estimates with the City and the County, as well as an extended timeline for document completion. Attend and Present at a Bremerton City Council Meeting. The contract amendment would provide budget for BERK to attend a Bremerton City Council meeting and present the findings of the analysis. This effort was not part of the original scope. This budget would provide resources for BERK to prepare a presentation, as well as travel to and attend a council meeting. The following table summarizes the requested budget increase in order to complete the above tasks. All work will be billed on a time and materials basis with the total budget for this amendment not to exceed $2,800. The estimated distribution of effort is outlined in the exhibit below. Principal Senior Project Total Hours and Associate Associate Estimated Cost 2013 Hourly Rate $250 $115 $75 by Task Task 6: Additional Budget for Memorandum Completion Subtotal 0 8 2 10 $1,070 Task 7: Presentation to City Council Subtotal 2 10 0 12 $1,650 Total Estimated Hours 2 18 2 22 Cost (Hours *Rate) $500 $2,070 $150 L $2 Subtotal Consultant Cost $2,720 Project Expenses @ - 3% of project budget $80 Estimated Project Total $2,800 BERK & Associates Contract Modification 3 Gorst Annexation Fiscal Analysis Contract Number 5207 Vendor BERK & ASSOCIATES, INC Sub�ect PSA Gorst Annexation Fiscal Analysis Department Finance File Class LEG 12-1 Begin Date 2/22/2013 End Date. Review Date: Vault Date• Comments PROFESSIONAL SERVICES AGREEMENT GOItST ANNEXATION FISCAL ANALYSIS BERK & Associates, Imc. The City of Bremerton ("Crty") and BERK & Associates, Inc ("Consultant"), referred to collectively as the "Parhes," enter mto the following Agreement for professional services I. Scope: The Consultant agrees to perform the services more specifically descnbed m the Scope of Work, attached hereto as E�ibit A, which is mcorporated by reference herem The Scope of Work may be modified only pursuant to Section VII G of this Agreement If the Scope of Work provides for unspecified addrtional services such services shall only be performed upon the express written request of the Criy Consultant further represents that the services furnished under this Agreement will be performed m accordance wrth generally accepted professional practices m effect at the time such services aze performed II. Term: The City and the Consultant agree that work will begin on the tasks described m Exhibit A immediately upon execuhon of this Agreement The parties agree that the work descnbed m Exhibit A is to be completed as provided for m the work schedule attached hereto as Exhibit B, provided however, that additional time shall be granted by the Crty for excusable delays or extra work as provided for m Section IX A of this agreement III. Compensation: In consideration of the services provided pursuant to tlus Agreement, the City shall pay Consultant m an amount not to exceed $15,000 Consultant's charges and bills shall conform to the fee schedule attached hereto as Exlubrt C and incorporated herem by this reference The Consultant shall submrt regular billmg statements detailmg work performed and amount charged on each task or portion thereof The descriptions shall conform to and fall withm the categones set out m the Scope of Work and/or Fee Schedule Upon receipt of a conformmg billmg statement, the Crty shall promptly process payment PROVIDED, HOWEVER, the City reserves the right to pnontize scoped work and accelerate and/or delay work tasks under the time frame set forth m Section II herem The Consultant's labor rates and bilhng fees shall be as delmeated m Exhibrt C Consultant shall not perform work beyond the Scope of Work, nor shall 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 additional services if requested pursuant to Sechon I and, if not otherwise provided, such compensahon shall be m accordance with Exlubrt C If a billmg statement does not conform to this Agreement, the City may wrthhold payment until the statement is brought mto compliance Such wrthholding does not relieve Consultant of its obligahons under this Agreement Bremerton/BERK Gorst Annexahon Fiscal Analysis Page 1 of 12 IV. Relationship of Parties: Consultant represents that rt is slcilled in the matters addressed m the Scope of Work and is performmg mdependent funchons and responsibilities wrtlun rts field of expertise Consultant and rts personnel are independent Consultants and not employees of the City Consultant and its personnel have no authonty to bind the Crty or to control the City's employees and other Consultants None of the benefits provided by the City to its employees, mcludmg, 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 will be solely and entirely responsible for its acts and for the acts of Consultant's agents, employees, representatives and sub-Consultants durmg the performance of this Agreement. The Crty may, dunng the term of tlus Agreement, engage other mdependent Consultants to perform the same or similaz work As an independent Consultant, Consultant is responsible for rts own management The Crty's admmistration and enforcement of tlus Agreement shall not be deemed an exercise of managenal control over Consultant or its personnel As an mdependent Consultant, Consultant is responsible for payment of all taxes and licensmg fees necessary to perform its obligations under tlus Agreement These taxes and fees mclude but are not limited to State mdustnal msurance, Busmess & Occupation, State professional licensmg, and Crty busmess licensing If any taxes or fees due the City have been declazed delmquent, the City may withhold the delmquent amount, plus any addrtional chazges arismg from the delmquency, from any payments due Consultant V. Indemnification: A Consultant shall defend, mdemYUfy and hold the City, its officers, officials, employees, agents and volunteers harmless from any and a11 claims, m�unes, damages, losses or surts, mcludmg all legal costs and attorney fees, ansing out of or m connection wrth Consultant's performance of tlus Agreement, unless Consultant is conducting work pursuant to Subsection B below The City's review or acceptance of any of the work when completed shall not be grounds to avoid any of these covenants of indemmfication B Archrtects, En�meers and Any Other Professional Listed In and Performing Services Defined in RCW 42 24 115 Should a court of competent �urisdiction determine that Consultant's services provided pursuant to this Agreement is sub�ect to RCW 4 24 115, then, m the event of liabilrty for damages arising out of bodily m�ury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the Crty, rts officers, officials, employees, agents and volunteers, the Consultant's liability hereunder sha11 be only to the extent of the Consultant's negligence IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WANER OF IMMUNITY UNDER 1NDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY Bremerton/BERK Gorst Annexation Fiscal Analvsis Page 2 of 12 FOR THE PURPOSES OF THIS INDEMNIFICATION THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER The provisions of this section shall survive the expiration or termmation of tlus Agreement VI. Insurance: The Consultant shall procure and mamtam for the duration of the Agreement, msurance agamst claims for m�uries to persons or damage to property wluch may anse from or m connection wrth the performance of the work hereunder by the Consultant, rts agents, representatives, employees, sub-consultants or sub-Consultants Before begimm�g work on the proJect described m this Agreement, the Consultant shall provide a Certificate of Insurance evidencmg 1. Automobile Liabilitv msurance with limrts no less than $1,000,000 combmed single limit per accident for bodily m�ury and property damage, and 2. Commercial General Liabilitv msurance written on an occurrence basis with limrts no less than $1,000,000 combmed smgle limit per occurrence and general aggregate for personal m�ury, bodily in�ury and property damage Coverage shall mclude but not be limrted to blanket contractual, products/completed operations/broad form property damage, explosion, collapse and underground (XCU) if applicable, and employer's liabihty, and 3. Excess Liabilitv msurance wrth limits not less than 1,000,000 limit per occurrence and aggregate 4. Professional Liabalitv msurance wrth limits no less than $1,000,000 limit per occurrence/claim Any payment of deductible or self msured retention shall be the sole responsibilrty of the Consultant All required policies shall be provided on an"occurrence" basis except professional liability msurance (if required), wluch may be provided on a"claims-made" basis The City shall be named as an addrtional insured on the Commercial General Liability 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, which names the City as an addrtional msured shall be attached to the Certificate of Insurance The Crty reserves the nght to receive a certified copy of all the required msurance policies and endorsements The City further reserves the nght to re�ect any unacceptable policies and/or endorsements The Consultant's Commercial General Liabilrty msurance shall contam a clause stahng that coverage shall apply separately to each msured agamst whom claim is made or swt is brought, except with respects to the limits of the msurer's liability The Consultant's msurance shall be pnmary insurance as respects the City and it shall be an affirmative obligation upon Consultant to advise the Crty's Risk Manager by fax at (360) 473- 5161, or by certified mail, return receipt requested to City of Bremerton, attn Risk Management, BremertonBERK Gorst Annexahon Fiscal Analvsis Page 3 of 12 345 6�' Street, Surte 600, Bremerton, WA 98337 wrthin two days of the cancellation, suspension or substanhve change of any msurance policy set out herem, and failure to do so shall be construed to be a breach of tlus Agreement The City also reserves rts unqualified nght to require at any time and for any reason, proof of coverage m the form of a duplicate of the insurance policy wrth all endorsements as evidence of coverage VII. General Conditions: A Reports and Information When requested by the Crty, Consultant shall furnish penodic reports and documents on matters covered by tlus Agreement The reports and documents shall be furnished in the time and form requested Consultant shall mamtvn accountmg records m accordance with Generally Accepted Accountmg Pnnciples (GAAP) to substanhate all billed amounts B Ownership and Use of Records and Documents Ongmal documents, drawings, designs and reports, mcludmg those m electronic format, developed under this Agreement are the property of the City All written informahon submitted by the City to the Consultant m 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 safeguazds like mformation relatmg to rts own busmess If such mformation is publicly available or is already m Consultant's possession or known to it, or is nghtfully obtamed by the Consultant from tlurd parhes, Consultant shall bear no responsibilrty for its disclosure, madvertent or otherwise All data, documents and files created by Consultant under this Agreement may be stored at Consultant's office m Seattle, Washmgton Consultant shall make such data, documents, and files available to the City upon its request at all reasonable hmes for the purpose of edrtmg, modifymg and updatmg as necessary until such time as the City is capable of stonng such information m the City's offices Duplicate copies of tlus information shall be provided to the City upon its request, and at reasonable cost All documents, including all reports, drawings, specifications, computer software or other rtems prepared or furnished by Consultant pursuant to this Agreement, are mstruments of service wrth respect to the pro�ect and are the property of the City Any reuse by the Crty for other than the specific purpose mtended will be at City's sole nsk C Work Performed at Consultant's Risk• Consultant shall take all precautions necessary and shall be responsible for the safety of rts 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 risk, and Consultant shall be responsible for any loss of or damage to matenals, tools, or other articles used or held for use in connechon with the work D Place of Work The Consultant sha11 perform the work authonzed under this Agreement at its offices m Seattle, Washington Meetmgs wrth the Crty staff as described m BremertonBERK Gorst Annexation Fiscal Anal.�sis Page 4 of 12 Exlubit A, Scope of Work, shall take place at the Crty's offices, or at locations mutually agreed upon by the parties E Entire Agreement Tlus Agreement and its Exhibrts conshtutes the entire agreement between the Parties, and the Parties acknowledge that there are no other agreements, written or oral, that have not been set forth m the text of this Agreement F Severabilrtv Should any part of tlus Agreement be found void, the balance of the Agreement shall remam m full force and effect G Modification This Agreement may only be modified by written instrument signed by both Parties H Wntten Notices All commumcations regardmg th�s Agreement shall be sent to the parties at the addresses listed below by registered or 1 st class mail, or by personal service, and shall be deemed sufficiently given if sent to the addressee at the address stated m this Agreement or such other address as may be hereafter specified in wrrting City Address City of Bremerton Consultant Address BERK & Associates, Inc 345 6�' Street, Surte 600 Bremerton, WA 98337 2025 First Avenue, Suite 800 Seattle, WA 98121 I Waiver Failure to enforce any provision of tlus Agreement shall not be deemed a waiver of that provision Waiver of any r�ght or power arismg out of tlus Agreement shall not be deemed waiver 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 ophon herem conferred in one or more mstances shall not be construed to be a waiver or relmquishment of said covenants, agreements or options, and the same shall be and remain in full force and effect K Compliance with Laws Consultant shall comply with all applicable Federal, State, and local laws m performmg its obligations under this Agreement L Choice of Law and Venue This Agreement shall be interpreted according to the laws of the State of Washmgton Any Judicial action to resolve disputes arismg out of tlus Agreement shall be brought m Krtsap County Superior Court M Attornevs' Fees In the event of litigation to enforce any of the terms or provisions herem, each party shall pay all its own costs and attorney's fees N Assignment. Any assignment of this agreement by the Contractor without the wntten consent of the Crty shall be void Bremerton/BERK Gorst Annexation Fiscal Analvsis Page 5 of 12 VIII. Nondiscrimination: Consultant shall not discruninate m employment or services to the public on the basis of race, color, national ongm, sex, religion, age, marital status, disabilrty, or sexual onentation except for employrnent actions based on bona fide occupahonal qualification IX. Termination: Tlus Agreement shall remain in force until completion and acceptance of the services, termmated by wntten mstrument upon mutual consent, or by the City of Bremerton for converuence This Agreement may be immediately termmated for cause by a Party if the other Party substantially fails to perform through no fault of the termmatmg Party, and the non- performmg Party does not commence correction of the failure of performance wrthm tlurty (30) days of the termmahng Party's sending notice to the non-performmg Party Any Nohce by Consultant shall include a report showing the status of all rtems listed m the Scope of Work current through the termmation date If the Crty receives reimbursement by any federal, state, or other source for work descnbed in Section I herein, and that fundmg is wrthdrawn, reduced or limrted 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 tlus Agreement A Excusable Delays The nght of Consultant to proceed shall not be termmated nor shall Consultant be charged wrth liquidated damages for any delays m the completion of the work due to 1) any acts of the federal government m controlling, restnctmg, or requisitiorung matenals, equipment, tools, or labor by reason of war, national defense, or other national emergency, 2) any acts of the Crty, rts consultants, or other public agencies causmg such delay, and 3) causes not reasonably foreseeable by the parties at the hme of the execution of the Agreement that are beyond the control and wrthout the fault or negligence of the Consultant, mcludmg, but not restricted to, acts of God, fires, floods, strikes, or weather of unusual seventy PROVIDED, HOWEVER, that the Consultant must promptly notify the City wrtlun ten (10) calendar days in wrrtmg 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 City shall, in writmg, extend the time for completmg the work for a period of time commensurate with the penod of excusable delay B Ri ts Upon Termination In the event of termination, the City shall pay for all services performed by the Consultant to the effective date of termination, as described on a final invoice submitted to the City After termmahon, the Crty may take possession of all records and data witlun the Consultant's possession pertairung to this pro�ect wluch may be used by the City without restriction Any such use not related to the pro�ect wluch Consultant was contracted to perform shall be wrthout liabilrty or legal exposure to the Consultant X. Suspension & Debarment For contracts mvolving Federal fundmg, Consultant hereby certifies, by sigmng this agreement, that nerther it nor rts pnncipals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntanly excluded from participation m this transaction by any Federal department or agency Consultant shall provide immediate written notice to the Crty if at any time it learns that it is or has become mehgible for certification Should Consultant enter mto a covered transachon with another firm, Consultant BremertonBERK Gorst Annexahon Fiscal Analysis Page 6 of 12 agrees by sigmng this agreement that rt will venfy that the firm with whom rt mtends to do busmess is not debarred, suspended, ineligible, excluded or disqualified CITY OF BREMERTON � / By Pa ent its Ma or Date � �-a, � /3 CONSULTANT 4 B y �. f� � 1ts r ��. �; � Date z-1�—�3 Approved as to form � Breme on City Attorney Bremerton/BERK e L r, Crty Clerk Gorst Annexation Fiscal Analvsis Page 7 of 12 EXHIBIT A The Crty of Bremerton is considenng annexation of the Gorst Urban Growth Area (LJGA) and has requested consultant assistance m assessmg the fiscal implications of such an annexahon This memorandum outlmes an approach to the analysis of fiscal impacts of annexation and mcludes a cost estimate by task BERK has conducted numerous annexation and mcorporation studies for crties and counties throughout Washmgton and are confident that we can provide efficient and valuable analysis to assist decision-makers considenng annexation and other governance changes In addihon, our recent work on the Krtsap County UGA Remand process m 2012 and the Gorst Subarea Plan will provide valuable mputs for the analysis and allow us to leverage this work to complete an annexation analysis efficiently and effectively Approach For this study, BERK's efforts will be focused on the current mcremental impacts of annexation and the sigmficant fiscal impacts of annexahon that will be realized over the long-term These two ma,�n elements mclude Reviewmg, analyzmg, and modelmg the Crty's current fiscal srtuation and analyzmg the mcremental impact annexation will likely have on Crty revenues, costs, and staffing Assessing longer-term fiscal issues and caprtal improvement needs related to the annexahon of the Gorst UGA m a more qualitative way, with the intention of identifymg long-term nsks, opportuxuties, and uncertamties the City of Bremerton will need to consider The study will be divided mto five different tasks, wluch aze outlmed below Task 1: Data Gathering and Land Base Analysis Data Gathering In Task 2, BERK will build a workmg model of the City's cost and revenue structure This model and analysis will be based on current data and a solid understandmg of the City's fiscal situation, includmg existmg staff, revenues, and costs BERK will gather this mformation through discussions wrth City department directors and a detailed analysis of the Crty's budget and actual financial data BERK will work with department directors to determme underl}nng drivers for changes m staffing for each staff position The model's staffing component will be structured based on these drivers Land Base Analysis Revenues and costs aze driven by the current distribution of land uses and development m the City and the Gorst UGA This study will include an analysis of current land use m the City and the UGA and creation of reasonable development assumptions to understand longer-term impacts BERK will leverage land capacrty analysis work as part of the Gorst Subarea Plan to inform the land base analysis BremertonBERK Gorst Annexation Fiscal Analysis Page8of12 Task 2: Analyze Annezation Fiscal Impacts Task 2 will analyze the fiscal impacts of annexation on the City of Bremerton Specifically, the analysis will evaluate impacts for the followmg urban services Fire Service Police Service Emergency Medical Service Transportation Utilrties, mcludmg power and telecommumcations, wluch mcludes broadband where available Stormwater Potable water Sewer Solid Waste Pazk and Recreation Facilrties Schools Model Building and Fiscal Impact Analysis BERK will use our firm's propnetary mwucipal fiscal model to analyze the Crty of Bremerton's current operatmg fiscal structure and the potential fiscal impact of annexahon This model will estimate operatmg costs and revenues associated wrth a potential Gorst UGA annexation, to provide a complete picture of the true mcremental impacts of annexation The advantage of tlus type of model is that it uses factors m the land base (such as population, employment, commercial achvity, and levels of developmentJredevelopment) to drrve both demand for services and the tax base Upon completmg a draft build of the model, we will schedule a meehng wrth key City staff to walk through the model, examme prelimmary findmgs, and discuss and refine key assumptions and relationships The goal will be to get City staff confident that the model describes current Crty operations and likely annexahon impacts in a way that fits with the reality they know Once the fiscal model and assumptions are finalized, BERK will develop a series of mdicators (e g costs and revenue per capita) to demonstrate how the Gorst UGA compares to the Crty of Bremerton as a whole and how servmg the area would impact the City fiscally Tlus surte of mdicators and comparisons will be incorporated m the final techrucal memo to assist decision- makers m understandmg the fiscal impacts of annexahon Task 3: Assess Capital Needs Tlus task will involve a review of caprtal mfrastructure needs developed for the Krtsap County UGA Remand process in 2012 as well as the Gorst Subazea Plan and evaluation of any annexation implications that may not have been considered. BERK will work wrth the Crty to review capital needs, and will identify areas of concern or ad�ustments that may be necessary under an annexation scenario BremertonBERK Gorst Annexation Fiscal Analysis Page 9 of 12 Task 4: Assess Long-Term Fiscal Issues of Annexation In addihon to analyzmg the fiscal impacts of annexation today, BERK will identify long-term revenue, cost, and service provision issues that would impact the Crty's fiscal posrtion in the future The assessment will factor m the Crty's current level-of-service standards, and estimate future needs and associated costs The assessment will also incorporate findmgs from the capital needs assessment The assessment will look at the development potenhal under the three land use alternahves developed as part of the Gorst Subarea Plan Development potential mcludes the number and type of additional housmg umts and commercial buildmg square feet studied under the three alternatives The assessment will consider how costs may grow m the future relative to future revenue under different development scenarios The analysis of long-term implicahons will not mclude detailed fiscal pro�echons and quantified impacts The findmgs will mstead be an identification of future risks and opportumties for the ma�or public services from both operational and capital needs perspectives Upon completing these analyses, we will schedule a meetmg with key City staff to walk through prelimmary findmgs, and discuss and refine key assumptions and relationships Task 5: Draft and Final Technical Memorandum Upon conclusion of the analysis, BERK will develop a draft and final summary of findmgs This techmcal memorandum will briefly discuss the methods and approach, but it will focus primanly on key findmgs to support policy discussions BremertonBERK Gorst Annexation Fiscal Analysis Page 10 of 12 EXHIBIT B Schedule The schedule for the annexation analysis should be coordmated wrth work being completed for the Gorst Subarea Plan, which vv�ll provide several of the mputs for the analysis BERK staff are available and able to begin analysis immediately once data and mputs are made available BremertonBERK Gorst Annexation Fiscal Anal,� Page 11 of 12 EXHIBIT C Budget This pro�ect will be billed on a time and matenals basis with the total budget for this scope of work not to exceed $15,000 The estimated distnbution of effort is outlmed m the exlubrt below Manager Semor Assoaate Total Hours and Associate Estimated Cost Task 1 Data Gathering and land Use Analysis Subtotal 2 0 20 22 $2,620 Task 2 Analyze Annexation Fisral Impacts Subtotal Task 3 Assess Capnal Needs Subtotai Task 4 Assess Long-term F�scal Issues of Annexation Subtotal Task 5 Draft and Pmal Technical Memorandum Subtotal Totai Estimated Hours Cost(Hours'Rate) 2 7 45 54 $6,475 2 2 5 9 $1,175 2 5 10 17 $2,170 2 0 15 17 $2,045 30 14 95 119 $1,600 $1,960 $10,925 $14,485 Subtotal Conwltant Cost $14,485 Pro�ect Expenses @ "'3%of pro�ed budget $515 Estimated Pro ect Total $15 000 BremertonBERK Gorst Annexation Fiscal Analvsis Page 12 of 12