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Bremerton/FCS Group
Salinity Surcharge Development, Project No. 325011
October 2020
PROFESSIONAL SERVICES AGREEMENT
with FCS Group for Salinity Surcharge Development for project NBK Salinity Study
Project No. 325011
The City of Bremerton (“City”) and FCS Group (“Consultant”), referred to collectively as
the “Parties,” enter into the following Agreement for professional services:
I. Scope: The Consultant agrees to perform the services more specifically described in the
Scope of Work, dated October 9, 2020, including 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.H of this Agreement. If the Scope of Work provides for unspecified
additional services such services shall only be performed upon the express written request of the
City. Consultant further represents that the services furnished under this Agreement will be
performed in accordance with generally accepted professional practices in effect at the time such
services are performed.
II. Term: The City and the Consultant agree that work will begin on the tasks described in
Exhibit A immediately upon execution of this Agreement. The parties agree that the work
described in Exhibit A is to be completed as provided for in the work schedule attached hereto as
Exhibit B; provided however, that additional 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 in an amount not to exceed $15,510. Consultant’s charges and bills shall
conform to the fee schedule attached hereto as Exhibit C and incorporated herein by this reference.
The Consultant shall submit regular billing statements detailing work performed and
amount charged on each task or portion thereof. The descriptions shall conform to and fall within
the categories set out in the Scope of Work and/or Fee Schedule. Upon receipt of a conforming
billing statement, the City shall promptly process payment. PROVIDED, HOWEVER, the City
reserves the right to prioritize scoped work and accelerate and/or delay work tasks under the time
frame set forth in Section II herein. The Consultant's labor rates and billing fees shall be as
delineated in Exhibit 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 this
Agreement. Consultant shall only be compensated for additional services if requested pursuant to
Section I and, if not otherwise provided, 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 into compliance. Such withholding does not relieve Consultant of
its obligations under this Agreement.
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Salinity Surcharge Development, Project No. 325011
October 2020
IV. Relationship of Parties: Consultant represents that it is skilled in the matters addressed
in the Scope of Work and is performing independent functions and responsibilities within its field
of expertise. Consultant and its personnel are independent Consultants and not employees of the
City. Consultant and its personnel have no authority to bind the City or to control the City’s
employees and other Consultants. None of the benefits provided by the City to its employees,
including, but not limited to, compensation, insurance, and unemployment insurance 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 during the performance of this Agreement. The
City may, during the term of this Agreement, engage other independent Consultants to perform
the same or similar work.
As an independent Consultant, Consultant is responsible for its own management. The
City’s administration and enforcement of this Agreement shall not be deemed an exercise of
managerial control over Consultant or its personnel.
As an independent Consultant, Consultant is responsible for payment of all taxes and
licensing fees necessary to perform its obligations under this Agreement. These taxes and fees
include but are not limited to State industrial insurance, Business & Occupation, State professional
licensing, and City business licensing. If any taxes or fees due the City have been declared
delinquent, the City may withhold the delinquent amount, plus any additional charges arising from
the delinquency, from any payments due Consultant.
V. Indemnification:
A. Consultant shall defend, indemnify and hold the City, its officers, officials,
employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or
suits, including all legal costs and attorney fees, arising out of or in connection with the acts, errors
or omissions of the Consultant in performance of this Agreement except for that portion of the
injuries and damages caused by the City’s sole negligence, 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 indemnification.
B. Architects, Engineers and Any Other Professional Listed In and Performing
Services Defined in RCW 4.24.115. Should a court of competent jurisdiction determine that
Consultant’s services provided pursuant to this Agreement is subject to RCW 4.24.115, then, in
the event of liability for damages arising out of bodily injury 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 liability hereunder shall 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 WAIVER
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October 2020
OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY 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 termination of this Agreement.
VI. Insurance: The Consultant shall procure and maintain for the duration of the Agreement,
insurance against claims for injuries to persons or damage to property which may arise from or in
connection with the performance of the work hereunder by the Consultant, its agents,
representatives, employees, sub-consultants or sub-contractors.
Before beginning work on the project described in this Agreement, the Consultant shall
provide a Certificate of Insurance evidencing:
1. Automobile Liability insurance with limits no less than $1,000,000 combined
single limit per accident for bodily injury and property damage; and
2. Commercial General Liability insurance written on an occurrence basis with
limits no less than $1,000,000 combined single limit per occurrence and general
aggregate for personal injury, bodily injury and property damage. Coverage shall
include but not be limited to: blanket contractual; products/completed
operations/broad form property damage; explosion, collapse and underground
(XCU) if applicable; and
3. Excess Liability insurance with limits not less than $1,000,000 limit per
occurrence and aggregate; and
4. Professional Liability insurance with limits no less than $1,000,000 limit per
occurrence/claim; and
5. Workers Compensation insurance as statutorily required by the Industrial
Insurance Act of the State of Washington, Title 51, Revised Code of Washington
and employer's liability with limits not less than $1,000,000.
Any payment of deductible or self-insured retention shall be the sole responsibility of the
Consultant.
All required policies shall be provided on an “occurrence” basis except professional
liability insurance (if required), which may be provided on a “claims-made” basis.
The City shall be named as an additional insured on the Commercial General Liability
insurance policy, as respects work performed by or on behalf of the Consultant and a copy of an
endorsement that is acceptable to the City, which names the City as an additional insured shall be
attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of
all the required insurance policies and endorsements. The City further reserves the right to reject
any unacceptable policies and/or endorsements.
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Salinity Surcharge Development, Project No. 325011
October 2020
The Consultant's Commercial General Liability insurance shall contain a clause stating that
coverage shall apply separately to each insured against whom claim is made or suit is brought,
except with respects to the limits of the insurer's liability.
The Consultant's insurance shall be primary and non-contributory insurance as respects the
City and shall contain a waiver of subrogation against the City for claims arising out of any
operations, liabilities and obligations to which coverage applies. It shall be an affirmative
obligation upon Consultant to advise the City’s Risk Manager by fax at (360) 473-5161, or by
certified mail, return receipt requested to City of Bremerton, Attn: Risk Management, 345 6th
Street, Suite 100, Bremerton, WA 98337 within two days of the cancellation, suspension or
substantive change of any insurance policy set out herein, and failure to do so shall be construed
to be a breach of this Agreement.
The City also reserves its unqualified right to require at any time and for any reason, proof
of coverage in the form of a duplicate of the insurance policy with all endorsements as evidence
of coverage.
In the event that the Consultant employs other consultants or contractors (sub-consultants
or sub-contractors) as part of the work covered by this Agreement, it shall be the Consultant’s
responsibility to require and confirm that each sub-consultant or sub-contractor meets the
minimum insurance requirements specified above. The Consultant shall, upon demand of the City,
deliver to the City copies of such policy or policies of insurance and the receipts for payment of
premiums thereon.
VII. General Conditions:
A. Reports and Information: When requested by the City, Consultant shall furnish
periodic reports and documents on matters covered by this Agreement. The reports and documents
shall be furnished in the time and form requested. Consultant shall maintain accounting records
in accordance with Generally Accepted Accounting Principles (“GAAP”) to substantiate all billed
amounts.
B. Ownership and Use of Records and Documents: Original documents, drawings,
designs and reports, including those in electronic format, developed under this Agreement are the
property of the City. All written information submitted by the City to the Consultant in connection
with the services performed by the Consultant under this Agreement will be safeguarded by the
Consultant to at least the same extent as the Consultant safeguards like information relating to its
own business. If such information is publicly available or is already in Consultant's possession or
known to it, or is rightfully obtained by the Consultant from third parties, Consultant shall bear no
responsibility for its disclosure, inadvertent or otherwise.
All data, documents and files created by Consultant under this Agreement may be stored
at Consultant's office in Redmond, Washington. Consultant shall make such data, documents, and
files available to the City upon its request at all reasonable times for the purpose of editing,
modifying and updating as necessary until such time as the City is capable of storing such
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information in the City's offices. Duplicate copies of this 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
items prepared or furnished by Consultant pursuant to this Agreement, are instruments of service
with respect to the project and are the property of the City. Any reuse by the City for other than
the specific purpose intended will be at City’s sole risk.
C. Use of Photographs and Images. Consultant shall not use or distribute photographs
or images depicting City officials, personnel, property, or equipment whether prepared by
Consultant or provided by City without prior written consent of the City. The City will not
unreasonably withhold its consent.
D. Work Performed at Consultant's Risk: Consultant shall take all precautions
necessary and shall be responsible for the safety of its employees, agents, and sub-consultants in
the performance of the work hereunder and shall 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 materials, tools, or other articles used or held for use in connection with the work.
E. Place of Work: The Consultant shall perform the work authorized under this
Agreement at its offices in Redmond, Washington. Meetings with the City staff as described in
Exhibit A, Scope of Work, shall take place at the City's offices, or at locations mutually agreed
upon by the parties.
F. Entire Agreement: This Agreement and its Exhibits constitutes 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 in the text of this Agreement.
G. Severability: Should any part of this Agreement be found void, the balance of the
Agreement shall remain in full force and effect.
H. Modification: This Agreement may only be modified by written instrument signed
by both Parties.
I. Written Notices: All communications regarding this Agreement shall be sent to the
parties at the addresses listed below by registered or 1st class mail, or by personal service, and
shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement
or such other address as may be hereafter specified in writing.
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Salinity Surcharge Development, Project No. 325011
October 2020
Notices to be sent to: Notices to be sent to:
CITY: CONSULTANT:
Attn: Bill Davis Attn: Angie Sanchez Virnoche
City of Bremerton FCS Group
345 6th Street, Suite 100 Redmond Town Center
Bremerton, WA 98337-1891 7525 166th Ave, NE, Suite D-215
Redmond, WA 98052
J. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a
waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be
deemed waiver of any other right or power.
K. Non-Waiver of Breach: The failure of the City to insist upon strict performance of
any of the covenants and agreements contained herein, or to exercise any option herein conferred
in one or more instances shall not be construed to be a waiver or relinquishment of said covenants,
agreements or options, and the same shall be and remain in full force and effect.
L. Compliance with Laws: Consultant shall comply with all applicable Federal, State,
and local laws in performing its obligations under this Agreement.
M. Choice of Law and Venue: This Agreement shall be interpreted according to the
laws of the State of Washington. Any judicial action to resolve disputes arising out of this
Agreement shall be brought in Kitsap County Superior Court.
N. Attorneys’ Fees: In the event of litigation to enforce any of the terms or provisions
herein, each party shall pay all its own costs and attorney’s fees.
O. Assignment: Any assignment of this agreement by the Contractor without the
written consent of the City shall be void.
VIII. Equal Employment Opportunity Statement: In the hiring of employees for the
performance of work under this Agreement, the Consultant, its subcontractors, or any person
acting on behalf of Consultant shall not discriminate in any employment practice on the basis of
age (40+), sex, race, creed, color, national origin, sexual orientation/gender identity, marital status,
military status, or the presence of any physical, mental or sensory disability.
IX. ADA Statement: The City of Bremerton does not discriminate on the basis of disability
in programs and activities, which it operates pursuant to the requirements of the Americans with
Disabilities Act of 1990, and ADA Amendments Act. This policy extends to both employment
and admission to participation in the programs, services and activities of the City of
Bremerton. Reasonable accommodation for employees or applicants for employment will be
provided.
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X. Termination: This Agreement shall remain in force until completion and acceptance of
the services, terminated by written instrument upon mutual consent, or by the City of Bremerton
for convenience. This Agreement may be immediately terminated for cause by a Party if the other
Party substantially fails to perform through no fault of the terminating Party, and the non-
performing Party does not commence correction of the failure of performance within thirty (30)
days of the terminating Party’s sending notice to the non-performing Party. Any Notice by
Consultant shall include a report showing the status of all items listed in the Scope of Work current
through the termination date.
If the City receives reimbursement by any federal, state, or other source for work described
in Section I herein, and that funding is withdrawn, reduced or limited in any way, or the project is
cancelled or substantially reduced after the execution date of this Agreement and prior to the
completion of the work, the City may summarily terminate this Agreement.
A. Excusable Delays: The right of Consultant to proceed shall not be terminated 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 in controlling, restricting, or requisitioning materials,
equipment, tools, or labor by reason of war, national defense, or other national emergency; 2) any
acts of the City, its consultants, or other public agencies causing such delay; and 3) causes not
reasonably foreseeable by the parties at the time of the execution of the Agreement that are beyond
the control and without the fault or negligence of the Consultant, including, but not restricted to,
acts of God, fires, floods, strikes, or weather of unusual severity. PROVIDED, HOWEVER, that
the Consultant must promptly notify the City within ten (10) calendar days in writing 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 writing, extend the time for completing the work for a period of time
commensurate with the period of excusable delay.
B. Rights 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 termination, the City may take possession of all records and
data within the Consultant's possession pertaining to this project which may be used by the City
without restriction. Any such use not related to the project which Consultant was contracted to
perform shall be without liability or legal exposure to the Consultant.
XI. Suspension & Debarment. For contracts involving Federal funding, Consultant hereby
certifies, by signing this agreement, that neither it nor its principals are presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation
in this transaction by any Federal department or agency. Consultant shall provide immediate
written notice to the City if at any time it learns that it is or has become ineligible for certification.
Should Consultant enter into a covered transaction with another firm, Consultant agrees by signing
this agreement that it will verify that the firm with whom it intends to do business is not debarred,
suspended, ineligible, excluded or disqualified.
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October 2020
IN WITNESS WHEREOF, the parties below have executed this Agreement.
CITY: CONSULTANT:
CITY OF BREMERTON FCS GROUP
By: By:
Print Name: Thomas Knuckey Print Name: Angie Sanchez Virnoche
Its: Director, Public Works & Utilities Its: Vice-President_______________
Date: Date:
APPROVED AS TO FORM: ATTEST:
By: By:
Roger A. Lubovich, Bremerton City Attorney Angela Hoover, City Clerk
R:\Legal\Legal\Forms\FORMS ON COBWEB\Professional Services Agreement Rev. 06 2020.docx
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10/22/202010/23/2020
Firm Headquarters
Redmond Town Center
7525 166th Ave NE, Ste D-215
Redmond, Washington 98052
Established in 1988
Washington | 425.867.1802
Oregon | 503.841.6543
Colorado | 719.284.9168
CITY OF BREMERTON
SALINITY SURCHARGE DEVELOPMENT
The City of Bremerton (City) has requested technical assistance from FCS GROUP (FCS) to
develop a salinity surcharge applicable to U.S. Puget Sound Naval Shipyard (Navy) as a means to
recover the ongoing cost of influent sewage salinity issues experienced by the City. The U.S. Navy
Wastewater Cost of Service study recently completed as part of the City and Navy contract
negotiations will be used as the basis for the surcharge developm ent. In addition, the work
completed as part of the HDR Wastewater Salinity Impact Study and Navy Salinity Study will
inform the surcharge development . Key tasks proposed for this effort include:
T ASK 1 – REVIEW OF ENGINEERING DOCUMENTS
This task includes reviewing relevant studies and documents studying the Navy salinity issues and
impacts to the City. At a minimum, these documents include the HDR Wastewater Salinity Impact
Study, Navy Salinity Study , Navy NPDES permit and City Department of Ecology per mit. These
studies are intended to inform the analysis by identifying salinity contributions, salinity threshold
loadings, permit requirements , capital impacts (improvements, useful life impacts, new capital
improvements required , other) and operating cost impacts.
T ASK 2 – UPDATE COST OF SERVICE ANALYSIS
The wastewater cost of service study completed as part of the new contract negotiations between
the Navy and City will be used as the basis for the updated analysis. Updates required to calculate
the cost-based salinity impacts include the following:
⚫Plant in service module – Update analysis to identify which assets are impacted by salinity
(treatment , conveyance, biosolid land application facilities, other). A cost classification
category for salinity will be added . Working with HDR and staff, a classification basis will
be developed to assign a proportional amount of applicable facilities to the salinity cost
classification (similar to the approach used for BOD/SS in the industry). The cost
classification may consider design requirements to appropriately handle salinity to standard
levels, maximum allowable loading levels or others deemed representative of the salinity
impact on specific infrastructure assets.
⚫Revenue requirement module – Update anal ysis to include a cost classification category for
salinity. Complete an account line item analysis to determine eligible costs . Eligible costs
will then be assigned as 100% eligible or a s a proportional share of eligible costs. The
proportional approac h can be unique or assigned as the plant in service allocation. This
analysis will also consider any additional costs or break out of existing costs to accurately
represent salinity related operating costs.
EXHIBIT A
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⚫Salinity allocation factor. Working with HDR, develop a factor(s) to allocate identified
salinity costs to the Navy. This could be one or multiple allocation f actors.
Completing of this task will result in tot al asset and system annual costs allocated to salinity and
the Navy’s allocated share of s alinity costs . This task anticipates there being up to three alternative
cost of service scenarios bracketing potential salinity impacts.
T ASK 3 – RATE DESIGN
This task will develop alternative rate structures to incentivize salinity controls by the Navy. Each
rate alternative will be developed to recover the preferred cost of service alternative selected. The
initial rate structures discussed include; a) tiered rate increasing as tiers are exceeded. b) flat rate
surcharge over a certain threshold c) Threshold cap with penalty rate tied to permit violation, d)
Other. This task anticipates development of up to four (4) alternative rate structures.
T ASK 4 | PROJECT MEETINGS
Four (4), one -hour remote project meetings are anticipated for the project to frame the analytical
approach and review preliminary results at key milestones. Project review meetings include the
following:
⚫Meeting 1 – Scheduled after Task 1 . Discuss with team the information in the completed
reports that will be used for the cost of service update , confirm s alinity thresho lds, identify
impacted assets and capital/operating cost impacts. Confirm rate design alternatives.
⚫Meeting 2 - Scheduled to review preliminary cost of service results, incorporate feedback and
changes.
⚫Meeting 3 – Review of alternative rate designs , incorporate feedback and changes.
⚫Meeting 4 – Finalize salinity rate surcharge.
T ASK 5 | DOCUMENTATION
A technical memo documenting the study approach, methodology, key assumptions and results will
be provided.
SCHEDULE
Completion of the analysis is based on a variety of issues. These issues include timeliness of receipt
of requested data/information; quality of data; ability to schedule meetings in a timely manner; and
the ability of the City to provide direction for the study to move forward at key study milestones.
The study team indicated a desire to have the work completed by the end of 2020. We are starting
about 1 month late and considering the upcoming holidays and vacations an e nd of January 202 1
target completion may be more realistic. We will do our best to make as much progress by the end
of year 2020 and re-assess project status and remaining tasks at that time .
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BUDGET
The total proposed level of effort to complete the Salinity Surcharge Development is summarized
below. Our normal billing practice is to bill based on time and materials actually expended, not to
exceed the total budget. We would be more than happy to negotiate the appropriate level of effort
for this project if we have scaled our approach out of line with the City’s needs and/or expectations.
Project Technical Project Admin.Estimated Total
Task Principal Advisor Analyst Support Hours Budget
Hourly Billing Rates:$270 $195 $145 $90
Technical Tasks
Task 1 - Review of Engineering Documents 4 - - - 4 $1,080
Task 2 - Update Cost of Service Analysis 8 4 24 - 36 6,420
Task 3 - Rate Design 4 2 12 18 3,210
Total Technical Tasks 16 6 36 - 58 $10,710
Process Tasks
Task 4 - Project Meetings
Four (4) Remote Review Meetings 4 - 4 - 8 1,660
Task 5 - Documentation - Technical Memorandum 2 - 8 - 10 1,700
Project Management - Administration, Billing 4 - -4 8 1,440
TOTAL PROJECT BUDGET 26 6 48 4 84 $15,510
Consultant Hours
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EXHIBIT B
SCHEDULE for Salinity Surcharge Development
Anticipated Notice to Proceed November 1, 2020
Technical Memo Delivery February 1, 2021
Contract Completion April 1, 2021
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EXHIBIT C
COMPENSATION for Salinity Surcharge Development
TASK ESTIMATED COST
Task 1: Review of Engineering Documents $1,080
Task 2: Update Cost of Service Analysis $6,420
Task 3: Rate Design $3,210
Task 4 (A): Project Meetings $1,660
Task 4 (B): Remote Review Meetings $1,700
Task 5: Documentation $1,440
TOTAL ESTIMATED COST $15,510
*The work will be invoiced based on time and materials and the total amount to be paid will not
exceed $15,510.
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