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AGREEMENT FOR WATER, WASTEWATER, AND SURFACE
WATER RATES AND SYSTEM DEVELOPMENT CHARGES UPDATE
2020
THIS AGREEMENT, dated February 7, 2020, is by and between the City of Renton (the "City"), a
Washington municipal corporation, and KU Financial Consulting ("Consultant"), a registered
Washington Sole Proprietorship. The City and the Consultant are referred to collectively in this
Agreement as the "Parties." Once fully executed by the Parties,this Agreement is effective as of
the last date signed by both parties.
1. Scope of Work: Consultant agrees to provide consultant services as specified in Exhibit
A, which is attached and incorporated herein and may hereinafter be referred to as the
"Work
2. Changes in Scope of Work: The City, without invalidating this Agreement, may order
changes to the Work consisting of additions,deletions or modifications.Any such changes
to the Work shall be ordered by the City in writing and the Compensation shall be
equitably adjusted consistent with the rates set forth in Exhibit B or as otherwise mutually
agreed by the Parties.
3. Time of Performance: Consultant shall commence performance of the Agreement
pursuant to the schedule(s) set forth in Exhibit C.All Work shall be performed by no later
than December 31, 2020.
4. Compensation:
A. Amount. Total compensation to Consultant for Work provided pursuant to this
Agreement shall not exceed $50,730, including any applicable state and local sales
taxes. Compensation shall be based upon Work actually performed according to the
rate(s) or amounts specified in Exhibit B.The Consultant agrees that any hourly or flat
rate charged by it for its Work shall remain locked at the negotiated rate(s) unless
otherwise agreed to in writing or provided in Exhibit B. Except as specifically provided
herein, the Consultant shall be solely responsible for payment of any taxes imposed
as a result of the performance and payment of this Agreement.
B. Method of Payment. On a monthly or no less than quarterly basis during any quarter
in which Work is performed,the Consultant shall submit a voucher or invoice in a form
specified by the City, including a description of what Work has been performed, the
name of the personnel performing such Work, and any hourly labor charge rate for
such personnel. The Consultant shall also submit a final bill upon completion of all
Work. Payment shall be made by the City for Work performed within thirty (30)
calendar days after receipt and approval by the appropriate City representative of the
voucher or invoice. If the Consultant's performance does not meet the requirements
of this Agreement, the Consultant will correct or modify its performance to comply
with the Agreement.The City may withhold payment for work that does not meet the
requirements of this Agreement.
C. Effect of Payment. Payment for any part of the Work shall not constitute a waiver by
the City of any remedies it may have against the Consultant for failure of the
Consultant to perform the Work or for any breach of this Agreement by the
Consultant.
D. Non-Appropriation of Funds. If sufficient funds are not appropriated or allocated for
payment under this Agreement for any future fiscal period, the City shall not be
obligated to make payments for Work or amounts incurred after the end of the
current fiscal period, and this Agreement will terminate upon the completion of all
remaining Work for which funds are allocated. No penalty or expense shall accrue to
the City in the event this provision applies.
5. Termination:
A. The City reserves the right to terminate this Agreement at any time, with or without
cause by giving ten (10)calendar days' notice to the Consultant in writing. In the event
of such termination or suspension, all finished or unfinished documents, data,studies,
worksheets, models and reports, or other material prepared by the Consultant
pursuant to this Agreement shall be submitted to the City, if any are required as part
of the Work.
B. In the event this Agreement is terminated by the City,the Consultant shall be entitled
to payment for all hours worked to the effective date of termination, less all payments
previously made. If the Agreement is terminated by the City after partial performance
of Work for which the agreed compensation is a fixed fee, the City shall pay the
Consultant an equitable share of the fixed fee. This provision shall not prevent the
City from seeking any legal remedies it may have for the violation or nonperformance
of any of the provisions of this Agreement and such charges due to the City shall be
deducted from the final payment due the Consultant. No payment shall be made by
the City for any expenses incurred or work done following the effective date of
termination unless authorized in advance in writing by the City.
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6. Warranties And Right To Use Work Product: Consultant represents and warrants that
Consultant will perform all Work identified in this Agreement in a professional and
workmanlike manner and in accordance with all reasonable and professional standards
and laws. Compliance with professional standards includes, as applicable, performing the
Work in compliance with applicable City standards or guidelines (e.g. design criteria and
Standard Plans for Road, Bridge and Municipal Construction). Professional engineers shall
certify engineering plans, specifications, plats, and reports, as applicable, pursuant to
RCW 18.43.070. Consultant further represents and warrants that all final work product
created for and delivered to the City pursuant to this Agreement shall be the original work
of the Consultant and free from any intellectual property encumbrance which would
restrict the City from using the work product. Consultant grants to the City a non-
exclusive, perpetual right and license to use, reproduce, distribute, adapt, modify, and
display all final work product produced pursuant to this Agreement. The City's or other's
adaptation, modification or use of the final work products other than for the purposes of
this Agreement shall be without liability to the Consultant. The provisions of this section
shall survive the expiration or termination of this Agreement.
7. Record Maintenance: The Consultant shall maintain accounts and records, which
properly reflect all direct and indirect costs expended and Work provided in the
performance of this Agreement and retain such records for as long as may be required by
applicable Washington State records retention laws, but in any event no less than six
years after the termination of this Agreement. The Consultant agrees to provide access
to and copies of any records related to this Agreement as required by the City to audit
expenditures and charges and/or to comply with the Washington State Public Records Act
(Chapter 42.56 RCW). The provisions of this section shall survive the expiration or
termination of this Agreement.
8. Public Records Compliance: To the full extent the City determines necessary to comply
with the Washington State Public Records Act,Consultant shall make a due diligent search
of all records in its possession or control relating to this Agreement and the Work,
including, but not limited to, e-mail, correspondence, notes, saved telephone messages,
recordings, photos, or drawings and provide them to the City for production. In the event
Consultant believes said records need to be protected from disclosure, it may, at
Consultant's own expense, seek judicial protection. Consultant shall indemnify, defend,
and hold harmless the City for all costs, including attorneys'fees, attendant to any claim
or litigation related to a Public Records Act request for which Consultant has responsive
records and for which Consultant has withheld records or information contained therein,
or not provided them to the City in a timely manner. Consultant shall produce for
distribution any and all records responsive to the Public Records Act request in a timely
manner, unless those records are protected by court order.The provisions of this section
shall survive the expiration or termination of this Agreement.
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9. Independent Contractor Relationship:
A. The Consultant is retained by the City only for the purposes and to the extent set forth
in this Agreement.The nature of the relationship between the Consultant and the City
during the period of the Work shall be that of an independent contractor, not
employee.The Consultant, not the City,shall have the power to control and direct the
details, manner or means of Work. Specifically, but not by means of limitation, the
Consultant shall have no obligation to work any particular hours or particular
schedule, unless otherwise indicated in the Scope of Work or where scheduling of
attendance or performance is mutually arranged due to the nature of the Work.
Consultant shall retain the right to designate the means of performing the Work
covered by this agreement, and the Consultant shall be entitled to employ other
workers at such compensation and such other conditions as it may deem proper,
provided, however, that any contract so made by the Consultant is to be paid by it
alone, and that employing such workers, it is acting individually and not as an agent
for the City.
B. The City shall not be responsible for withholding or otherwise deducting federal
income tax or Social Security or contributing to the State Industrial Insurance
Program,or otherwise assuming the duties of an employer with respect to Consultant
or any employee of the Consultant.
C. If the Consultant is a sole proprietorship or if this Agreement is with an individual,the
Consultant agrees to notify the City and complete any required form if the Consultant
retired under a State of Washington retirement system and agrees to indemnify any
losses the City may sustain through the Consultant's failure to do so.
10. Hold Harmless: The Consultant agrees to release, indemnify, defend, and hold harmless
the City, elected officials, employees, officers, representatives, and volunteers from any
and all claims, demands, actions, suits, causes of action, arbitrations, mediations,
proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees,
penalties, expenses, attorney's or attorneys' fees, costs, and/or litigation expenses to or
by any and all persons or entities, arising from, resulting from, or related to the negligent
acts, errors or omissions of the Consultant in its performance of this Agreement or a
breach of this Agreement by Consultant, except for that portion of the claims caused by
the City's sole negligence.
Should a court of competent jurisdiction determine that this agreement is subject to RCW
4.24.115, (Validity of agreement to indemnify against liability for negligence relative to
construction,alteration,improvement,etc.,of structure or improvement attached to real
estate...)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
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Consultant and the City, its officers, officials, employees and volunteers, Consultant's
liability shall be only to the extent of Consultant's negligence.
It is further specifically and expressly understood that the indemnification provided in
this Agreement constitute Consultant's waiver of immunity under the Industrial
Insurance Act, RCW Title 51, solely for the purposes of this indemnification. The Parties
have mutually negotiated and agreed to this waiver. The provisions of this section shall
survive the expiration or termination of this Agreement.
11. Gifts and Conflicts: The City's Code of Ethics and Washington State law prohibit City
employees from soliciting, accepting, or receiving any gift, gratuity or favor from any
person, firm or corporation involved in a contract or transaction. To ensure compliance
with the City's Code of Ethics and state law,the Consultant shall not give a gift of any kind
to City employees or officials. Consultant also confirms that Consultant does not have a
business interest or a close family relationship with any City officer or employee who was,
is, or will be involved in selecting the Consultant, negotiating or administering this
Agreement, or evaluating the Consultant's performance of the Work.
12. City of Renton Business License: The Consultant shall obtain a City of Renton Business
License prior to performing any Work and maintain the business license in good standing
throughout the term of this agreement with the City.
Information regarding acquiring a city business license can be found at:
http://www.rentonwa.gov/cros/One.aspx?portalld=7922741&pagel d=9824882
Information regarding State business licensing requirements can be found at:
http://dor.wa.gov/doing-business/register-my-business
13. Insurance: Consultant shall secure and maintain:
A. Commercial general liability insurance in the minimum amounts of $1,000,000 for
each occurrence/$2,000,000 aggregate for the Term of this Agreement.
B. In the event that Work delivered pursuant to this Agreement either directly or
indirectly involve or require Professional Services, Professional Liability, Errors and
Omissions coverage shall be provided with minimum limits of $1,000,000 per
occurrence. "Professional Services", for the purpose of this section, shall mean any
Work provided by a licensed professional or Work that requires a professional
standard of care.
C. Workers' compensation coverage, as required by the Industrial Insurance laws of the
State of Washington, shall also be secured.
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D. Commercial Automobile Liability for owned,leased,hired or non-owned,leased,hired
or non-owned, with minimum limits of $1,000,000 per occurrence combined single
limit, if there will be any use of Consultant's vehicles on the City's Premises by or on
behalf of the City, beyond normal commutes.
E. Consultant shall name the City as an Additional Insured on its commercial general
liability policy on a non-contributory primary basis. The City's insurance policies shall
not be a source for payment of any Consultant liability, nor shall the maintenance of
any insurance required by this Agreement be construed to limit the liability of
Consultant to the coverage provided by such insurance or otherwise limit the City's
recourse to any remedy available at law or in equity.
F. Subject to the City's review and acceptance, a certificate of insurance showing the
proper endorsements, shall be delivered to the City before performing the Work.
G. Consultant shall provide the City with written notice of any policy cancellation,within
two (2) business days of their receipt of such notice.
14. Delays: Consultant is not responsible for delays caused by factors beyond the
Consultant's reasonable control. When such delays beyond the Consultant's reasonable
control occur,the City agrees the Consultant is not responsible for damages, nor shall the
Consultant be deemed to be in default of the Agreement.
15. Successors and Assigns: Neither the City nor the Consultant shall assign, transfer or
encumber any rights, duties or interests accruing from this Agreement without the
written consent of the other.
16. Notices: Any notice required under this Agreement will be in writing, addressed to the
appropriate party at the address which appears below (as modified in writing from time
to time by such party), and given personally, by registered or certified mail, return receipt
requested, by facsimile or by nationally recognized overnight courier service.Time period
for notices shall be deemed to have commenced upon the date of receipt, EXCEPT
facsimile delivery will be deemed to have commenced on the first business day following
transmission. Email and telephone may be used for purposes of administering the
Agreement, but should not be used to give any formal notice required by the Agreement.
CITY OF RENTON CONSULTANT
Teresa Phelan Karyn Johnson
1055 South Grady Way 1402 Lake Tapps Pkwy SE, Ste F104-229
Renton, WA 98057 Auburn, WA 98902
Phone: (425) 430-7332 Phone: (425)749-6030
PAGE6 OF 16
tphelan@rentonwa.gov karynljohnson@outlook.com
Fax: (425) 430-7241
17. Discrimination Prohibited: Except to the extent permitted by a bona fide occupational
qualification,the Consultant agrees as follows:
A. Consultant, and Consultant's agents, employees, representatives, and volunteers
with regard to the Work performed or to be performed under this Agreement, shall
not discriminate on the basis of race, color, sex, religion, nationality, creed, marital
status, sexual orientation or preference, age (except minimum age and retirement
provisions), honorably discharged veteran or military status, or the presence of any
sensory, mental or physical handicap, unless based upon a bona fide occupational
qualification in relationship to hiring and employment, in employment or application
for employment, the administration of the delivery of Work or any other benefits
under this Agreement, or procurement of materials or supplies.
B. The Consultant will take affirmative action to insure that applicants are employed and
that employees are treated during employment without regard to their race, creed,
color, national origin, sex, age, sexual orientation, physical, sensory or mental
handicaps, or marital status. Such action shall include, but not be limited to the
following employment, upgrading, demotion or transfer, recruitment or recruitment
advertising, layoff or termination, rates of pay or other forms of compensation and
selection for training.
C. If the Consultant fails to comply with any of this Agreement's non-discrimination
provisions, the City shall have the right, at its option, to cancel the Agreement in
whole or in part.
D. The Consultant is responsible to be aware of and in compliance with all federal, state
and local laws and regulations that may affect the satisfactory completion of the
project, which includes but is not limited to fair labor laws, worker's compensation,
and Title VI of the Federal Civil Rights Act of 1964, and will comply with City of Renton
Council Resolution Number 4085.
18. Miscellaneous:The parties hereby acknowledge:
A. The City is not responsible to train or provide training for Consultant.
B. Consultant will not be reimbursed for job related expenses except to the extent
specifically agreed within the attached exhibits.
C. Consultant shall furnish all tools and/or materials necessary to perform the Work
except to the extent specifically agreed within the attached exhibits.
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D. In the event special training, licensing, or certification is required for Consultant to
provide Work he/she will acquire or maintain such at his/her own expense and, if
Consultant employs,sub-contracts,or otherwise assigns the responsibility to perform
the Work, said employee/sub-contractor/assignee will acquire and or maintain such
training, licensing, or certification.
E. This is a non-exclusive agreement and Consultant is free to provide his/her Work to
other entities, so long as there is no interruption or interference with the provision of
Work called for in this Agreement.
F. Consultant is responsible for his/her own insurance, including, but not limited to
health insurance.
G. Consultant is responsible for his/her own Worker's Compensation coverage as well as
that for any persons employed by the Consultant.
19. Other Provisions:
A. Approval Authority. Each individual executing this Agreement on behalf of the City
and Consultant represents and warrants that such individuals are duly authorized to
execute and deliver this Agreement on behalf of the City or Consultant.
B. General Administration and Management. The City's project manager is Teresa
Phelan. In providing Work, Consultant shall coordinate with the City's contract
manager or his/her designee.
C. Amendment and Modification. This Agreement may be amended only by an
instrument in writing, duly executed by both Parties.
D. Conflicts. In the event of any inconsistencies between Consultant proposals and this
Agreement, the terms of this Agreement shall prevail. Any exhibits/attachments to
this Agreement are incorporated by reference only to the extent of the purpose for
which they are referenced within this Agreement. To the extent a Consultant
prepared exhibit conflicts with the terms in the body of this Agreement or contains
terms that are extraneous to the purpose for which it is referenced,the terms in the
body of this Agreement shall prevail and the extraneous terms shall not be
incorporated herein.
E. Governing Law. This Agreement shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington and the City of
Renton. Consultant and all of the Consultant's employees shall perform the Work in
accordance with all applicable federal, state, county and city laws, codes and
ordinances.
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F. Joint Drafting Effort.This Agreement shall be considered for all purposes as prepared
by the joint efforts of the Parties and shall not be construed against one party or the
other as a result of the preparation, substitution, submission or other event of
negotiation, drafting or execution.
G. Jurisdiction and Venue.Any lawsuit or legal action brought by any party to enforce or
interpret this Agreement or any of its terms or covenants shall be brought in the King
County Superior Court for the State of Washington at the Maleng Regional Justice
Center in Kent, King County,Washington,or its replacement or successor. Consultant
hereby expressly consents to the personal and exclusive jurisdiction and venue of
such court even if Consultant is a foreign corporation not registered with the State of
Washington.
H. Severability. A court of competent jurisdiction's determination that any provision or
part of this Agreement is illegal or unenforceable shall not cancel or invalidate the
remainder of this Agreement,which shall remain in full force and effect.
I. Sole and Entire Agreement. This Agreement contains the entire agreement of the
Parties and any representations or understandings, whether oral or written, not
incorporated are excluded.
J. Time is of the Essence. Time is of the essence of this Agreement and each and all of
its provisions in which performance is a factor. Adherence to completion dates set
forth in the description of the Work is essential to the Consultant's performance of
this Agreement.
K. Third-Party Beneficiaries. Nothing in this Agreement is intended to, nor shall be
construed to give any rights or benefits in the Agreement to anyone other than the
Parties,and all duties and responsibilities undertaken pursuant to this Agreement will
be for the sole and exclusive benefit of the Parties and no one else.
L. Binding Effect. The Parties each bind themselves, their partners, successors, assigns,
and legal representatives to the other party to this Agreement, and to the partners,
successors, assigns, and legal representatives of such other party with respect to all
covenants of the Agreement.
M. Waivers.All waivers shall be in writing and signed by the waiving party. Either party's
failure to enforce any provision of this Agreement shall not be a waiver and shall not
prevent either the City or Consultant from enforcing that provision or any other
provision of this Agreement in the future. Waiver of breach of any provision of this
Agreement shall not be deemed to be a waiver of any prior or subsequent breach
unless it is expressly waived in writing.
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N. Counterparts. The Parties may execute this Agreement in any number of
counterparts, each of which shall constitute an original, and all of which will together
constitute this one Agreement.
IN WITNESS WHEREOF, the Parties have voluntarily entered into this Agreement as of the date
last signed by the Parties below.
CITY OF NTON CONSULTANT
By: By: l7 at./
Arm do Pavone nJo nson
Mayor President
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Date Date
Attest
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Shane Moloney
Renton City Attorney
Contract Template Updated 03/12/2019
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EXHIBIT A - SCOPE OF WORK
The following Scope of Work identifies the tasks to be performed for the City of Renton's Water,
Wastewater and Surface Water Rate and SDC Study Update for the 2021/22 budget cycle.
Task 000 I Project Management
Perform administrative/management procedures for efficient study performance. Submit monthly
invoices and progress reports describing recent and forthcoming efforts, potential challenges and/or
needs from the City, and a status of the study progress, schedule and budget adherence. Maintain
regular contact with the City's project manager to address any issues as they arise.
Task 100 I Data Collection and Review
Provide a data request list identifying financial and operational documents, and customer data pertinent
to the performance of the study. Review, analyze, and validate such information as necessary for use in
formulating the technical analyses.
Task 200 I Update Revenue Requirements
Update the City's revenue requirement models for each utility for the current year(2020) and six-year
planning horizon, 2021—2026. Rate adjustments will focus on proposed rates for adoption for the
2021/2022 budget cycle with future rate adjustments provided for planning purposes.
a I Baseline Analysis—Prepare a baseline revenue requirement analysis incorporating the following
updated information:
• Economic assumptions for inflation,customer growth,and funds earnings rate
• Assumptions for SPU purchased water costs and King County wastewater treatment costs
• Actual or estimates for beginning cash balances and depreciation expense
• Draft and final 2021/2022 budgeted revenues and expenses
• Capital projects,associated annual costs(capitalized and expensed), and assumed capital
realization factors
• Capital funding sources including cash reserves SDCs, infrastructure replacement funding from
rates, contributions, and potential debt(if any)
Compare baseline revenue requirements against projected revenue under existing rates and update the
rate adjustment strategy for the planning period.
b I Scenario Development—Prepare multiple "what if" scenarios to evaluate impacts of incremental
costs associated with potential additional staffing, new programs,equipment needs, and/or other non-
budgeted costs.While the Scope of Services imposes no limit on the number of scenarios, it is
anticipated that about five (5)scenarios will be prepared for each utility.
c I Residential Bill Impacts—Summarize the proposed six-year rate revenue adjustments and typical
single-family residential bill impacts for each utility and on a combined basis for all utilities.
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Task 300—Update System Development Charges(SDCs)
Update the City's SDC models for each utility based on the existing methodology to reflect current and
planned capacity for the current year(2020) and six-year planning horizon, 2021—2026.SDCs will be
calculated for the 2021/2022 adoption cycle.
a ( Baseline Analysis—Prepare a baseline SDC analysis including the six-year schedule of eligible capital
projects, costs and associated capacity(consistent with approach used for the current adopted SDCs).
Incorporate the following updated information:
• Actual financial data/resource data as of December 31, 2019 for plant-in-service, contributed
assets, interest earnings, construction work in progress, customer data, existing cash balances
and outstanding debt principal
• Identified capital projects and costs for the 2020 base year and six-year planning horizon (2021-
2026)
• Review/update of assignment of capital projects to "major maintenance" or
"upgrades/expansions".
• Growth projections from system plans and/or current customer data
b I Scenario Development—Prepare scenarios that may include capital costs/capacity and calculated
SDCs for two-year and four-year planning horizons and/or potential phase-in strategies to achieve the
proposed maximum calculated SDCs.
c I Residential Impact—Summarize the proposed SDC for each utility and on a combined basis for all
utilities for a typical single-family residential customer.
Task 400—Water Fixed Meter Charge Structure Modification
The objective of this task is to evaluate alternative approaches and resulting impacts for equalizing the
single family 3/4-inch and 1-inch meter charge. Potential options include, but are not limited to the
following:
• Revenue Neutral for Single Family Class—Design a separate fixed charge structure for the
single-family class. Reset the meter ratios and resulting meter charges by applying the AWWA
meters&services cost ratios assuming 1-inch as the new base size for the single-family
customer classes.
• Revenue Loss-Set the 1-inch single family fixed meter charge equal to the proposed 3/4-inch
charge established under Task 200 above.Accept the resulting revenue loss to the water utility
as compared to the proposed 1-inch charge established under the existing structure in Task 200
above.
• Revenue Neutral for Water Utility-Set the 1-inch single family fixed meter charge equal to the
proposed 3/4-inch charge established under Task 200 above.Adjust system-wide increase to
make up the revenue loss and apply uniformly to all customer classes.
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Task 500—Wholesale Water Rate Update
Update the wholesale water rate model and proposed rate for the 2021/2022 budget cycle following the
approach recommended in the 2018 Comprehensive Rate study.
a I O&M Rate Component—Update the City's wholesale rate model to incorporate the 2021 budget
and current water system and wholesale customer demand. Review O&M allocation factors established
in the previous study and update as warranted.Calculate resulting O&M rate component for 2021.
b I Capital Rate Component(Optional)—This task is dependent upon whether the City will have
compiled the plant asset data in the detail and format required to complete the technical analysis.
Major tasks include:
• Review allocation factors developed in the previous study and update as necessary to reflect
current demand data and outstanding debt.
• Update detail water system fixed assets list as of December 31, 2019, including original cost,
contributed assets,accumulated depreciation,and depreciation expense. Incorporate new
information compiled by the City for assets specifically serving Skyway.
• Assign percentage share of assets applicable to wholesale and allocate corresponding asset data
to Skyway based on updated demand allocation factors and calculate return on rate base.
• Sum the components of depreciation expense and return on rate base to derive the capital rate
component for 2021.
• Combined O&M and capital rate components to derive the total wholesale water rate.
• Summarize wholesale customer total water bill impact.
Task 600—Meetings
Prepare for and facilitate onsite meetings to review interim findings and final results.The following
onsite meetings are anticipated.Additional meetings via teleconference will be accommodated as
needed:
a I Initial Project Meeting—Participate in a project meeting with City staff to discuss study objectives
and major milestones.We will also use this session to discuss options for the water rate structure
evaluation and any issues/challenges to address in the wholesale water rate update. Prior to this
meeting,we will submit a data request identifying the information needed for the study and review
readily available information.
b I Revenue Requirement Results—Four(4)working sessions to review preliminary results, run hands-
on modeling of"what if"scenarios under draft and final budget figures and review finding results.
c I SDC Results—Two(2) meetings to review draft and final SDC results.
d I Water Meter Charge Modifications/Wholesale O&M Rate Results—Two (2) meetings to review
water meter fixed charge results and results for the wholesale O&M rate component.
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e I Wholesale Capital Rate Results(Optional)—One (1) meeting to review results for the capital rate
component.This task is dependent upon selection and completion of optional Task 500(b).
Task 700—Rate Model Training and User Guide
Conduct onsite training sessions with utility managers and staff to review model inputs and functionality
for updating the revenue requirement portion of the rate model.The following sessions are anticipated:
a I Utility Manager's Training—Conduct a working session with utility managers and the study project
manager to provide an overview of model data inputs, model operations/functionality and testing of
"what if"scenarios and results. Review particular areas of interest in more detail as may be requested.
b ) Project Manager Training—Conduct an additional working session with the study project manager
to review each section of the models in more depth, including quality control/assurance for testing of
inputs and results. It is anticipated that this session will be held on the same day as Task 700(a) above.
c ) User Guide—Update the City's current user guide as necessary for in-house updates of the revenue
requirement portion of the models.There is no charge for this task.
Task 800—Documentation and Study Deliverables
Document final results in a technical memorandum describing major assumptions,findings and
proposed rates and charges.Submit electronic versions of documentation and updated models. It is
anticipated that separate memorandums will be submitted covering the following topics:
• Revenue Requirements and SDCs
• Water Rate Structure Alternatives
• Wholesale Water Rates
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EXHIBIT B - COMPENSATION
The exhibit below presents estimated hours by task,hourly billing rate and total fees for the Scope
of Work described in Exhibit A.
Task/Description
Hours Dollars
K.Johnson
Hourly Billing Rate: $ 200
Task 000- Project Management 6.00 $ 1,200
Task 100- Data Collection/Review 12.00 $ 2,400
Task 200- Update Revenue Requirements 94.50 $ 18,900
Task 300- Update System Development Charges 36.00 $ 7,200
Task 400-Water Meter Charge Modification 16.00 $ 3,200
Task 500-Wholesale Water Rate
(a) O&M Rate Component 4.00 $ 800
(b) Capital Rate Component(optional) 24.00 $ 4,800
Task 600- Meetings
(a) Initial Project Meeting [1] 4.00 $ 800
(b) Revenue Requirement Results [4] 16.00 $ 3,200
(c) SDC Results [2] 6.00 $ 1,200
(d) Water Fixed Charge/Wholesale Water O&M Rate Results [2] 4.00 $ 800
(e) Wholesale Water Capital Rate Results(optional)[1] 2.00 $ 400
Task 700-Rate Model Training and User Guide [1]
(a) Utility Manager's Training 4.00 $ 800
(b) Project Manager's Training 2.00 $ 400
(c) User Guide (No charge) - $ -
Task 800- Documentation/Study Deliverables
(a) Revenue Requirements and SDCs 12.00 $ 2,400
(b) Water Rate Structure Modifications 4.00 $ 800
(c) Wholesale Water Rate- O&M Component 2.00 $ 400
(d) Wholesale Water Rate-Capital Component Increment(optional) 4.00 $ 800
Subtotal Labor 252.50 $ 50,500
Mileage Expense $ 230
Total Fee $ 50,730
Less Optional Tasks: $ 44,730
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EXHIBIT C - SCHEDULE
Based on discussion with City staff,the proposed schedule for completion of major task
milestones is outlined below:
• Notice to proceed and data collection:on or about March 1,2020
• Revenue Requirement Draft Results: mid-May to early June 2020 (to assist City with
budget recommendations)
• SDC Results:July 2020
• Water Rate Structure Alternatives:July 2020
• Wholesale Water Rate Results:July-August 2020
• Rate Model Training:August 2020
• Final Results and Study Deliverables:August 31,2020
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