HomeMy WebLinkAbout2008-11-18; City Council; 19639; FCS Group AgreementCITY OF CARLSBAD CITY COUNCIL AND
MUNICIPAL WATER DISTRICT - AGENDA BILL
11
19.639AB#
MTG. 11-18-08
DEPT. PW/M&O
APPROVING THE AGREEMENT FOR A COST OF
SERVICES & RATE DESIGN STUDY WITH FCS GROUP,
INC.
DEPT. HEAD /,
CITY ATTY.
CITY MGR.(Jj
RECOMMENDED ACTION:
Adopt Resolution No. 2008-308 of the City Council of the City of Carlsbad, California approving
an agreement with FCS Group, Inc., to provide a comprehensive Cost of Services and Rate Design
Study for wastewater operations.
Adopt Resolution No.1345 of the Board of Directors of the Carlsbad Municipal Water
District, California approving an agreement with FCS Group, Inc., to provide a comprehensive Cost of
Services and Rate Design Study for potable and recycled water operations.
ITEM EXPLANATION:
Proposition 218, officially titled the "Right to Vote on Taxes Act," was approved by California voters on
November 5, 1996. It added articles XIII C and XIII D to the California Constitution. This Proposition
added substantive and procedural requirements on new and increased taxes, assessments, property
related fees and charges and includes placing the burden on agencies providing public utility service
(e.g., water, wastewater, etc.) to develop cost of service studies that document the costs for which the
fees and charges are being imposed. The California Supreme Court has determined that water fees
and charges are a property related fee and subject to the procedural requirements set forth in the
constitution, namely,
• Notice and hold a majority protest hearing.
• Fees and charges may only be used for the services provided.
• Fees and charges may not exceed the amount required to provide the service.
Although not yet specifically addressed by the Supreme Court, these requirements likely apply to
sewer charges and fees.
The most recent cost of service study for Carlsbad was completed in January 1996. That study
included recommendations about what levels the City and District should maintain reserves in order to
have sufficient funding available to meet its operating, capital, and debt service obligations in the
potable water, recycled water, and wastewater enterprise funds. The policies established at that time
were intended to allow the City and District to fund expenditures in a manner consistent with
Carlsbad's Water, Recycled Water and Wastewater Master Plans, the 10-Year Financial Plan, the
Carlsbad Growth Management Plan, and to avoid significant rate fluctuations due to changes in cash
flow requirements. The outcome of the proposed study should provide data to update and/or revise
the fiscal policies of the 1996 study and will include new policy elements such as utility rate
compliance with Proposition 218. There is also an optional component to the contract that asks for
the contractor to be available to incorporate any new information from the Water & Wastewater
Master Plan Updates which are expected to be completed by 2011 into a revised cost of service
analysis if requested to do so by staff.
Page 2
A Request for Proposal (RFP) to conduct a Cost of Service and Rate Design Study was placed and
advertised on the City bid site. Eight responses to the RFPs were received and following a best value
analysis, staff recommends PCS Group, Inc. as the best firm to perform the studies.
The intent is to complete the Cost of Service and Rate Design Study by February 2009, in time to
incorporate any new or revised policies in the FY 2009-10 Water and Wastewater Capital
Improvement Program (CIP) and Operating Budgets
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15738, this
contract does not constitute a "project" within the meaning of CEQA and therefore, does not require
environmental review.
FISCAL IMPACT:
The total cost of the contract with FCS Group is $173.380. as follows:
• Cost of Services & Rate Design Studies - $138.855
• Water & Wastewater Master Plan Updates (optional services) - $34,525
The cost of the contract will be shared equally between the Water and Wastewater Operating
Budgets; i.e., $86,690 to be encumbered to Water pursuant to a CMWD Professional Services
Agreement, and $86,690 to be encumbered to Wastewater pursuant to a City of Carlsbad
Professional Services Agreement. There are sufficient appropriations in both enterprise budgets to
cover all costs associated with this work, including the optional services.
EXHIBITS:
1. Resolution No. 2008-308 of the City Council of the City of Carlsbad, California approving
an agreement with FCS Group, Inc. to provide a comprehensive Cost of Services and Rate
Design Study for wastewater operations.
2. Resolution No. 1345 of the Board of Directors of the Carlsbad Municipal Water
District, California approving an agreement with FCS Group, Inc. to provide a comprehensive
Cost of Services and Rate Design Study for potable and recycled water operations.
3. Agreement for Cost of Services and Rate Design Study Services with FCS Group, Inc. (City)
4. Agreement for Cost of Services and Rate Design Study Services with FCS Group, Inc. (CMWD)
FOR CITY CLERKS USE ONLY.
COUNCIL/BOARD ACTION: APPROVED » CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D
DEPARTMENT CONTACT: Mark Stone 760-438-2722 mston@ci.carlsbad.ca.us
EXHIBIT 1
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RESOLUTION NO. 2008-308
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT
WITH FCS GROUP, INC., TO PROVIDE A COMPREHENSIVE
4 COST OF SERVICES AND RATE DESIGN STUDY FOR
WASTEWATER OPERATIONS.
5
WHEREAS, Proposition 218, officially titled the "Right to Vote on Taxes Act," was
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approved by California voters on November 5, 1996. This Proposition added substantive and
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procedural requirements on new and increased taxes, assessments, property related fees and
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charges which includes placing the burden on agencies providing public utility service (e.g.,
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wastewater, etc.) to develop cost of service studies that document the costs for which the fees
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and charges are being imposed; and
WHEREAS, the most recent cost of service study for Carlsbad was completed in
January 1996; and13
WHEREAS, city staff does not have the technical skills and expertise necessary to14
conduct a Wastewater Cost of Service and Rate Design Study; and
ID
WHEREAS, the City issued a Request for Proposal (RFP) for a Wastewater Cost of16
Service and Rate Design Study; and
WHEREAS, after careful review and evaluation the Selection Committee recommended18
FCS Group, Inc. to provide the Wastewater Cost of Services and Rate Design Study.I \y
_n WHEREAS, selection of FCS Group, Inc. is expected to perform the study in an
21 expedited fashion without compromising the final work product.
22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
23 California, as follows:
24 1. That the above recitations are true and correct.
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1 2. That the agreement to conduct a Cost of Service and Rate Design Study for
2 Wastewater Operations by PCS Group, Inc. at a cost of $86,690 is approved and
3 the Mayor is hereby authorized to execute said agreement.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council and Carlsbad Municipal Water District Board of Directors, held
on the 18th day of November, 2008, by the following vote:
AYES: Council Members Lewis, Hall, Packard and Nygaard.
NOES: None.
ABSENT: Council Member Kulchin.
ATTEST:
LORRAINE M.M/p>6D, City tflerk
/SEAL) V
EXHIBIT 2
1
2 RESOLUTION NO. 1345
3 A RESOLUTION OF THE BOARD OF DIRECTORS OF
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD)
4 APPROVING AN AGREEMENT WITH FCS GROUP, INC., TO
PROVIDE A COMPREHENSIVE COST OF SERVICES AND
5 RATE DESIGN STUDY FOR POTABLE AND RECYCLED
WATER OPERATIONS.
6
7 WHEREAS, Proposition 218, officially titled the "Right to Vote on Taxes Act," was
8 approved by California voters on November 5, 1996. This Proposition added substantive and
9 procedural requirements on new and increased taxes, assessments, property related fees and
10 charges which includes placing the burden on agencies providing public utility service (e.g.,
11 water, etc.) to develop cost of service studies that document the costs for which the fees and
12 charges are being imposed; and
13 WHEREAS, the most recent cost of service study for Carlsbad was completed in
14 January 1996; and
15 WHEREAS, city staff does not have the technical skills and expertise necessary to
16 conduct a Water and Recycled Water Cost of Service and Rate Design Study; and
17 WHEREAS, the City issued a Request for Proposal (RFP) for a Water and Recycled
18 Water Cost of Service and Rate Design Study; and
19 WHEREAS, after careful review and evaluation the Selection Committee recommended
20 FCS Group, Inc. to provide the Water and Recycled Water Cost of Service and Rate Design
21 Study.
PP
WHEREAS, selection of FCS Group, Inc. is expected to perform the study in an
po expedited fashion without compromising the final work product.
24 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Carlsbad Municipal
pc
Water District (CMWD) of the City of Carlsbad, California, as follows:
26 1. That the above recitations are true and correct.
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1 2. That the agreement to conduct a Cost of Service and Rate Design Study for
2 Potable and Recycled Water Operations by PCS Group, Inc. at a cost of $86,690
3 is approved and the Board President is hereby authorized to execute said
agreement.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council,
held on the 18th day of November, 2008, by the following vote:
AYES: Board Members Lewis, Hall, Packard and Nygaard.
NOES: None.
ABSENT: Board Member Kulchin.
ATTEST:
ZORRAlJJE M. W0OD, Secretary O
/(SEAL)1
/Mill///,,
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ti
EXHIBIT 3
AGREEMENT FOR COST OF SERVICES AND RATE DESIGN STUDY SERVICES
(FCS Group, Inc.)
THIS AGREEMENT is made and entered into as of the / 9 day of
, 20 A&, by and between the CITY OF CARLSBAD, a municipal
corporation, ("City"), and FCS Group, Inc., a California Corporation, ("Contractor").
RECITALS
A. City requires the professional services of a consultant that is experienced
in wastewater utility cost of services and rate design studies.
B. Contractor has the necessary experience in providing professional
services and advice related to wastewater utility cost of service and rate design studies.
C. Selection of Contractor is expected to achieve the desired results in an
expedited fashion.
D. Contractor has submitted a proposal to City and has affirmed its
willingness and ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those services (the
"Services") that are defined in attached Exhibit "A", which is incorporated by this
reference in accordance with this Agreement's terms and conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Contractor will exercise the reasonable professional
care and skill customarily exercised by reputable members of Contractor's profession
practicing in the Metropolitan Southern California Area, and will use reasonable
diligence and best judgment while exercising its professional skill and expertise.
3. TERM
The term of this Agreement will be effective for a period of one year from the date first
above written.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
5. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term
will be not to exceed Eighty Six Thousand, Six Hundred and Ninety dollars ($86,690).
No other compensation for the Services will be allowed except for items covered by
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subsequent amendments to this Agreement. The City reserves the right to withhold a
ten percent (10%) retention until City has accepted the work and/or Services specified
in Exhibit "A".
Incremental payments, if applicable, should be made as outlined in attached Exhibit "A".
6. STATUS OF CONTRACTOR
Contractor will perform the Services in Contractor's own way as an independent
contractor and in pursuit of Contractor's independent calling, and not as an employee of
City. Contractor will be under control of City only as to the result to be accomplished,
but will consult with City as necessary. The persons used by Contractor to provide
services under this Agreement will not be considered employees of City for any
purposes.
The payment made to Contractor pursuant to the Agreement will be the full and
complete compensation to which Contractor is entitled. City will not make any federal or
state tax withholdings on behalf of Contractor or its agents, employees or
subcontractors. City will not be required to pay any workers' compensation insurance or
unemployment contributions on behalf of Contractor or its employees or subcontractors.
Contractor agrees to indemnify City within thirty (30) days for any tax, retirement
contribution, social security, overtime payment, unemployment payment or workers'
compensation payment which City may be required to make on behalf of Contractor or
any agent, employee, or subcontractor of Contractor for work done under this
Agreement. At the City's election, City may deduct the indemnification amount from any
balance owing to Contractor.
7. SUBCONTRACTING
Contractor will not subcontract any portion of the Services without prior written approval
of City. If Contractor subcontracts any of the Services, Contractor will be fully
responsible to City for the acts and omissions of Contractor's subcontractor and of the
persons either directly or indirectly employed by the subcontractor, as Contractor is for
the acts and omissions of persons directly employed by Contractor. Nothing contained
in this Agreement will create any contractual relationship between any subcontractor of
Contractor and City. Contractor will be responsible for payment of subcontractors.
Contractor will bind every subcontractor and every subcontractor of a subcontractor by
the terms of this Agreement applicable to Contractor's work unless specifically noted to
the contrary in the subcontract and approved in writing by City.
8. OTHER CONTRACTORS
The City reserves the right to employ other Contractors in connection with the Services.
9. INDEMNIFICATION
Contractor agrees to indemnify and hold harmless the City and its officers, officials,
employees and volunteers from and against all claims, damages, losses and expenses
including attorneys fees arising out of the performance of the work described herein
caused by any negligence, recklessness, or willful misconduct of the Contractor, any
City Attorney Approved Version #05.06.08
subcontractor, anyone directly or indirectly employed by any of them or anyone for
whose acts any of them may be liable.
The parties expressly agree that any payment, attorney's fee, costs or expense City
incurs or makes to or on behalf of an injured employee under the City's self-
administered workers' compensation is included as a loss, expense or cost for the
purposes of this section, and that this section will survive the expiration or early
termination of this Agreement.
10. INSURANCE
Contractor will obtain and maintain for the duration of the Agreement and any and all
amendments, insurance against claims for injuries to persons or damage to property
which may arise out of or in connection with performance of the services by Contractor
or Contractor's agents, representatives, employees or subcontractors. The insurance
will be obtained from an insurance carrier admitted and authorized to do business in the
State of California. The insurance carrier is required to have a current Best's Key Rating
of not less than "A-:VM". OR with a surplus line insurer on the State of California's List of
Eligible Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide
of at least "A:X".
10.1 Coverages and Limits.
Contractor will maintain the types of coverages and minimum limits indicated below,
unless City Attorney or City Manager approves a lower amount. These minimum
amounts of coverage will not constitute any limitations or cap on Contractor's
indemnification obligations under this Agreement. City, its officers, agents and
employees make no representation that the limits of the insurance specified to be
carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If
Contractor believes that any required insurance coverage is inadequate, Contractor will
obtain such additional insurance coverage, as Contractor deems adequate, at
Contractor's sole expense.
10.1.1 Commercial General Liability Insurance. $1.000.000 combined
single-limit per occurrence for bodily injury, personal injury and property damage. If the
submitted policies contain aggregate limits, general aggregate limits will apply
separately to the work under this Agreement or the general aggregate will be twice the
required per occurrence limit.
10.1.2 Automobile Liability (if the use of an automobile is involved for
Contractor's work for City). $1,000,000 combined single-limit per accident for bodily
injury and property damage.
10.1.3 Workers' Compensation and Employer's Liability. Workers'
Compensation limits as required by the California Labor Code. Workers' Compensation
will not be required if Contractor has no employees and provides, to City's satisfaction, a
declaration stating this.
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10.1.4 Professional Liability. Errors and omissions liability appropriate to
Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must
be maintained for a period of five years following the date of completion of the work.
10.2. Additional Provisions. Contractor will ensure that the policies of insurance
required under this Agreement contain, or are endorsed to contain, the following
provisions:
10.2.1 The City will be named as an additional insured on General
Liability.
10.2.2 Contractor will obtain occurrence coverage, excluding Professional
Liability, which will be written as claims-made coverage.
10.2.3 This insurance will be in force during the life of the Agreement and
any extensions of it and will not be canceled without thirty (30) days prior written notice
to City sent by certified mail pursuant to the Notice provisions of this Agreement.
10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution
of this Agreement, Contractor will furnish certificates of insurance and endorsements to
City.
10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these
insurance coverages, then City will have the option to declare Contractor in breach, or
may purchase replacement insurance or pay the premiums that are due on existing
policies in order to maintain the required coverages. Contractor is responsible for any
payments made by City to obtain or maintain insurance and City may collect these
payments from Contractor or deduct the amount paid from any sums due Contractor
under this Agreement.
10.5 Submission of Insurance Policies. City reserves the right to require, at anytime,
complete and certified copies of any or all required insurance policies and
endorsements.
11. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term of
the Agreement, as may be amended from time-to-time.
City Attorney Approved Version #05.06.08
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12. ACCOUNTING RECORDS
Contractor will maintain complete and accurate records with respect to costs incurred
under this Agreement. All records will be clearly identifiable. Contractor will allow a
representative of City during normal business hours to examine, audit, and make
transcripts or copies of records and any other documents created pursuant to this
Agreement. Contractor will allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of
final payment under this Agreement.
13. OWNERSHIP OF DOCUMENTS
All work product produced by Contractor or its agents, employees, and subcontractors
pursuant to this Agreement is the property of City. In the event this Agreement is
terminated, all work product produced by Contractor or its agents, employees and
subcontractors pursuant to this Agreement will be delivered at once to City. Contractor
will have the right to make one (1) copy of the work product for Contractor's records.
Under this agreement, the City agrees not to distribute the computer models produced
during this study to outside vendors without the Consultant's authorization.
14. COPYRIGHTS
Contractor agrees that all copyrights that arise from the services will be vested in City
and Contractor relinquishes all claims to the copyrights in favor of City.
15. NOTICES
The name of the persons who are authorized to give written notices or to receive written
notice on behalf of City and on behalf of Contractor under this Agreement.
For Citv:
Name Mark Stone
Title Deputy PW Director
For Contractor:
Name Robb Grantham
Department Maint. & Operations
City of Carlsbad
Address 5950 El Camino Real
Carlsbad. CA 92008
Title Senior Project Manager
Address 225 Bush Street. Suite 1825
San Francisco. CA 94104
Phone No. (415)445-8947
Email Address robbg@fcsgroup.com
Phone No. (760) 438-2722
Each party will notify the other immediately of any changes of address that would
require any notice or delivery to be directed to another address.
16. CONFLICT OF INTEREST
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II
City will evaluate Contractor's duties pursuant to this Agreement to determine whether
disclosure under the Political Reform Act and City's Conflict of Interest Code is required
of Contractor or any of Contractor's employees, agents, or subcontractors. Should it be
determined that disclosure is required, Contractor or Contractor's affected employees,
agents, or subcontractors will complete and file with the City Clerk those schedules
specified by City and contained in the Statement of Economic Interests Form 700.
Contractor, for Contractor and on behalf of Contractor's agents, employees,
subcontractors and consultants warrants that by execution of this Agreement, that they
have no interest, present or contemplated, in the projects affected by this Agreement.
Contractor further warrants that neither Contractor, nor Contractor's agents, employees,
subcontractors and consultants have any ancillary real property, business interests or
income that will be affected by this Agreement or, alternatively, that Contractor will file
with the City an affidavit disclosing this interest.
17. GENERAL COMPLIANCE WITH LAWS
Contractor will keep fully informed of federal, state and local laws and ordinances and
regulations which in any manner affect those employed by Contractor, or in any way
affect the performance of the Services by Contractor. Contractor will at all times observe
and comply with these laws, ordinances, and regulations and will be responsible for the
compliance of Contractor's services with all applicable laws, ordinances and regulations.
Contractor will be aware of the requirements of the Immigration Reform and Control Act
of 1986 and will comply with those requirements, including, but not limited to, verifying
the eligibility for employment of all agents, employees, subcontractors and consultants
that the services required by this Agreement.
18. DISCRIMINATION AND HARASSMENT PROHIBITED
Contractor will comply with all applicable local, state and federal laws and regulations
prohibiting discrimination and harassment.
19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance of the Services the following
procedure will be used to resolve any questions of fact or interpretation not otherwise
settled by agreement between the parties. Representatives of Contractor or City will
reduce such questions, and their respective views, to writing. A copy of such
documented dispute will be forwarded to both parties involved along with recommended
methods of resolution, which would be of benefit to both parties. The representative
receiving the letter will reply to the letter along with a recommended method of
resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory
to the aggrieved party, a letter outlining the disputes will be forwarded to the City
Manager. The City Manager will consider the facts and solutions recommended by each
party and may then opt to direct a solution to the problem. In such cases, the action of
the City Manager will be binding upon the parties involved, although nothing in this
procedure will prohibit the parties from seeking remedies available to them at law.
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12.
20. TERMINATION
In the event of the Contractor's failure to prosecute, deliver, or perform the Services,
City may terminate this Agreement for nonperformance by notifying Contractor by
certified mail of the termination. If City decides to abandon or indefinitely postpone the
work or services contemplated by this Agreement, City may terminate this Agreement
upon written notice to Contractor. Upon notification of termination, Contractor has five
(5) business days to deliver any documents owned by City and all work in progress to
City address contained in this Agreement. City will make a determination of fact based
upon the work product delivered to City and of the percentage of work that Contractor
has performed which is usable and of worth to City in having the Agreement completed.
Based upon that finding City will determine the final payment of the Agreement.
Either party upon tendering thirty (30) days written notice to the other party may
terminate this Agreement. In this event and upon request of City, Contractor will
assemble the work product and put it in order for proper filing and closing and deliver it
to City. Contractor will be paid for work performed to the termination date; however, the
total will not exceed the lump sum fee payable under this Agreement. City will make the
final determination as to the portions of tasks completed and the compensation to be
made.
21. COVENANTS AGAINST CONTINGENT FEES
Contractor warrants that Contractor has not employed or retained any company or
person, other than a bona fide employee working for Contractor, to solicit or secure this
Agreement, and that Contractor has not paid or agreed to pay any company or person,
other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift,
or any other consideration contingent upon, or resulting from, the award or making of
this Agreement. For breach or violation of this warranty, City will have the right to annul
this Agreement without liability, or, in its discretion, to deduct from the Agreement price
or consideration, or otherwise recover, the full amount of the fee, commission,
percentage, brokerage fees, gift, or contingent fee.
22. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees that any Agreement claim submitted to
City must be asserted as part of the Agreement process as set forth in this Agreement
and not in anticipation of litigation or in conjunction with litigation. Contractor
acknowledges that if a false claim is submitted to City, it may be considered fraud and
Contractor may be subject to criminal prosecution. Contractor acknowledges that
California Government Code sections 12650 et seq.. the False Claims Act applies to
this Agreement and, provides for civil penalties where a person knowingly submits a
false claim to a public entity. These provisions include false claims made with deliberate
ignorance of the false information or in reckless disregard of the truth or falsity of
information. If City seeks to recover penalties pursuant to the False Claims Act, it is
entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges
that the filing of a false claim may subject Contractor to an administrative debarment
proceeding as the result of which Contractor may be prevented to act as a Contractor
on any public work or improvement for a period of up to five (5) years. Contractor
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acknowledges debarment by another jurisdiction is grounds for City to terminate this
Agreement.
23. JURISDICTIONS AND VENUE
Any action at law or in equity brought by either of the parties for the purpose of
enforcing a right or rights provided for by this Agreement will be tried in a court of
competent jurisdiction in the County of San Diego, State of California, and the parties
waive all provisions of law providing for a change of venue in these proceedings to any
other county.
24. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon City and
Contractor and their respective successors. Neither this Agreement nor any part of it nor
any monies due or to become due under it may be assigned by Contractor without the
prior consent of City, which shall not be unreasonably withheld.
25. ENTIRE AGREEMENT
This Agreement, together with any other written document referred to or contemplated
by it, along with the purchase order for this Agreement and its provisions, embody the
entire Agreement and understanding between the parties relating to the subject matter
of it. In case of conflict, the terms of the Agreement supersede the purchase order.
Neither this Agreement nor any of its provisions may be amended, modified, waived or
discharged except in a writing signed by both parties.
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26. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on behalf
of Contractor each represent and warrant that they have the legal power, right and
actual authority to bind Contractor to the terms and conditions^ this Agreement.
CITY
corpoo
(sign here)
(print name/title)ATTEST:
(e-r^ail acfdres^)/
*Bv: /kIMJI i/M/M\t L JL0A iZZ
nnn / /OOD
/l' /'(e-ma(l address)/
if required by City, proper notarial acknowledgment of execution by __,,r
must be attached. If a Corporation. Agreement must be signed by one corporate
officer from each of the following two groups.
*Group A.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or
assistant secretary under corporate seal empowering the officer(s) signing to bind the
corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
Deputy City Attorney
City Attorney Approved Version #05.06.08
<> PCS GROUP
EXHIBIT "A"
SCOPE OF WORK
TASK PLAN
The following task plan outlines PCS GROUP'S structure for undertaking the data review, policy review,
analysis, review and documentation of the wastewater cost of service and rate study process. Within
this task plan, PCS has incorporated work products for each scope of work element referenced in the
City's Request for Proposal (RFP).
Task 1 - Project Management and Communication
PCS GROUP will keep an open line of communication with the City through meetings and a project
management and control plan. This plan will establish the protocols for communication and data
transfer. The plan will help to minimize the time impacts on staff, while enhancing data transfer from
staff.
1.1 Kick-off Meeting & Data Collection - PCS GROUP will hold a project kick-off meeting with
Carlsbad staff to review the scope of work, background information, initial data needs, and to establish
appropriate lines of communication for any arising concerns. The history and context of existing fees
will be reviewed and discussed as well as management preferences related to the project. PCS
GROUP will develop a preliminary written data request that will precede the project kick-off meeting, so
that readily available materials can be assembled and remaining data needs can be reviewed and
discussed. The data request will address fiscal policies and practices, historical and projected
operational and maintenance expenditures, operating transfers, non-operating revenues, debt service
requirements, replacement funding and capital improvement needs.
1.2 Communication Plan - Following the kick-off meeting, PCS GROUP will develop a project
management and control plan to facilitate communication with the City regarding progress, technical
issues and planned activities. This plan will establish the protocols for communication and data
transfer. The plan will help to minimize the time impacts on staff, while enhancing data transfer from
staff. Our project manager will be the primary client contact, with direct and targeted interaction with
the technical advisor and analyst. We will thoroughly review the data received for adequacy and
completeness and assess the need for additional data. As necessary, PCS GROUP will work with
Carlsbad to develop a plan to fill-in any data gaps when there are omissions or deficiencies in the data.
1.3 Project Meetings - PCS GROUP will participate in progress meetings with Carlsbad staff. We
have scoped three (3) meetings, combined with the Water Cost of Services Study being conducted
concurrently, including the project kick-off meeting. These workshops will allow staff to review and
provide input on the financial plan.
Task 2 - Prepare Budget Projections and Assess Revenue Requirements
PCS GROUP will perform a financial analysis which evaluates utility revenue requirements that account
for all costs associated with operating and maintaining the water, recycled water and wastewater
utilities. These analyses will rely on historic expenditures and system growth; projected operating, non-
operating, debt-related and capital expenditures; increased demands; and, projected revenues.
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The analyses will be captured in financial planning models. The models will be structured to project
revenue needs related to a 20-year planning horizon. While the primary focus of this study will be to
produce a three year rate package, the model will allow the user to evaluate both short- and long-term
rate strategies in a comprehensive manner. The model will calculate rate revenue requirements based
on cash flow, bond coverage, and fiscal policy requirements.
2.1 Fiscal Policies Review - In developing the financial models, FCS GROUP will review and evaluate
the wastewater utility's guiding fiscal policies as they relate to capital funding, and appropriate
operating, capital, emergencies, rate stabilization and connection charge reserves/funds. We
understand the desire to cash fund capital projects over the next 5 to 10 years.
2.2 Historical Financial Statements and Budgets - FCS GROUP will develop revenue requirements
and sufficiency analyses based on historic data and projected expenditures. The analyses will extend
through 20-year planning horizons in order to provide an estimated impact of the long-term capital
program.
2.3 Capital Improvement Program - FCS GROUP will incorporate Carlsbad's capital improvement
program within its analysis, including all future capital improvement projects. FCS GROUP will
recommend a capital funding strategy based on debt ratios, replacement and expansion needs, funding
sources, and rate impacts. The model will utilize cost "S" curves that take into account the timing,
duration and costs of specific projects. This feature will allow staff to review potential projects from a
fiscal perspective and assess the feasibility of such projects before spending too much time and money
evaluating potential projects from an engineering standpoint.
2.4 Revenue Requirement - At the heart of any utility rate study is a revenue requirement, which uses
projected cash flows and debt service requirements to project revenue shortfalls. Using historical
records, FCS GROUP will project future operating and maintenance expenditures. Ongoing
expenditures will be escalated annually on a line-item basis using a range of escalation factors. For
example, variable costs, such as power, will increase not only by general cost inflation, but also with
increases in utility demands. Additionally, debt and non-operating revenues and expenditures will also
be evaluated.
Using these projections, FCS GROUP will develop a financial model for the wastewater utility that
incorporates the preceding tasks and assess the forecasted revenues through a cash flow sufficiency
test and debt service coverage test. The result of the analyses will be an accurate projection of
revenue required to service total service operations and debt. The model will consist of a functional set
of methods and data that meet the objectives set forth in the RFP, including the ability to update
revenues and expenses, and calculate costs associated with the collection and treatment of
wastewater.
Task 3 - Develop Proposed Utility Rates Based on Cost of Service
The rate design analysis determines, using system planning and statistical data, an allocation of costs
to customer classes, defining an equitable cost-based rate burden. Since restructuring rates will almost
inevitably shift cost burdens, a valid cost allocation analysis is essential to ensuring this equitable
allocation and recovery of costs. FCS GROUP will begin with a management review of general rate
options, is then supported by a cost analysis process, and returns to a review of specific rate proposals.
3.1 Utility Rate Review- FCS GROUP will meet with utility management to review and evaluate
potential rate structure alternatives. Based on our extensive experience, we will advise Carlsbad on
key features likely to promote policy objectives while retaining equitable cost recovery. From this
City Attorney/General Counsel Approved Version #05.06.08
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session, multiple rate structure alternatives will be identified for analysis and development. A portion of
this task will be devoted to the discussion of potential drought rate structures, and the impacts to flow-
based wastewater service charges.
3.2 Customer Data Analysis - PCS GROUP will evaluate historical billing information. Due to the
variable nature of utility rates, it is important to evaluate a multi-year trend and determine the potential
revenue lulls during low-usage years. PCS will thoroughly examine the usage data, calibrating billing
records against actual rate revenues to prevent over or under estimation of Carlsbad's sewer service
area customer base. This is a critical step in setting appropriate and sufficient rates.
3.3 Develop Proposed Rates - This task involves three separate components - 1) allocating costs by
function, 2) allocating costs by customer class, and 3) calculating wastewater rates. Based on the rate
evaluation performed under the previous tasks, PCS GROUP will develop rates for the wastewater
utility based on the preferred rate structures. These rates will be based on "cost-of-service" principles
that incorporate the work performed in all previous tasks and will adhere to Proposition 218
requirements.
3.4 Surcharges and Miscellaneous Fees - PCS GROUP will review all fees, charges and surcharges
in use. We will examine current costs associated with the treatment of wastewater by the Encina
Wastewater Authority, and evaluate implementing a surcharge to recover the expenses associated with
any price increases. This will allow customers to see that a portion of their rates are increasing due to
increased wastewater treatment costs. Additionally, PCS GROUP will determine the cost of service for
other miscellaneous fees. These fees will be based on fully loaded labor costs and cost of materials.
3.5 Wastewater Connection Fees - PCS GROUP will provide a connection fee study for the
wastewater utility. Calculation of a connection fee is a simple mathematical operation; however,
defining the cost and capacity bases that make up that operation are more complex and represent the
core of the connection fee study. Basic steps in defining the basis for and computing the connection
fee are as follows: defining existing facilities in service; defining future facilities required; allocating
existing and future facilities to beneficiaries; establishing a connection equivalency basis; and, dividing
allocated facility costs by the expected growth to be served. We will incorporate the data used from the
wastewater utility cost of service study for efficiencies.
3.6 Internal Review - PCS GROUP will conduct an independent and objective review of the proposed
rates for the wastewater utility. This review will be performed by a senior project manager with
extensive experience developing utility rates. This proposed task is additive to the Carlsbad's original
project scope. However, we believe this proposed QA/QC process is vital to delivering tested and
defensible recommendations. We believe the level of this review is unique and reflects the depth of our
resources.
Task 4 - Project Meetings, and Draft and Final Reports
Based on the findings and recommendations of this study, PCS GROUP will develop a draft and final
report, attend meetings with staff, and present to stakeholders and the Carlsbad City Council.
4.1 Prepare Draft Report - After all analyses have been performed, PCS GROUP will develop a draft
report. The report will contain an executive summary that provides a clear and concise overview of the
study and its recommendations. The main body of the report will provide additional detail and
supporting charts and graphs. PCS GROUP will provide an electronic version of the draft report for
staff review and comment.
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4.2 Prepare Final Study Report - Based on staff review and comment, PCS GROUP will finalize the
report and produce the final report (8 copies plus one unbound reproducible copy). PCS GROUP will
finalize presentation materials and provide an electronic (MS PowerPoint) version.
4.3 Presentations - PCS GROUP will make six (6) presentations, combined with the Water Cost of
Services Study being conducted concurrently, in order to articulate the methodology behind the
analysis and promote the recommendations. These presentations will be aimed at the Carlsbad City
Council and/or Citizens.
4.4 Computer Rate Model Training -At the close of this project, a one-day training session will be
held with staff. We believe that having a usable financial planning tool is a critical project deliverable.
The models will allow Carlsbad staff to run "what-if scenarios as necessary, often times eliminating no-
go projects before spending significant time or money investigating their feasibility. The model will also
be designed to be transparent, allowing staff to quickly respond to questions regarding specific impacts
to rates. As a part of this effort, training tasks will be provided after the first session to generate added
participation and insight into model use.
COST ESTIMATES
The proposed fixed costs associated with providing the services presented within this proposal amount
to $69.428. This amount includes labor, indirect and direct costs and is broken down by task as
follows:
FCS GROUP Proposed
Project Budget
Labor Effort & Expense by Task
1.Project Management & Communication
Project Management
Kick-Off Meeting & Data Collection
Workload by Consultant
Principal
$235.00
1.0
0.0
Project
Manager
$190.00
4.0
5.0
Technical
Advisor
$190.00
0.0
0.0
Analyst
$135.00
0.0
7.0
Admin Total
Support Labor
$65.00 Expenses
2.0
0.0
$
$
1,125
1,895
Direct Total
Expenses Expenses
$
$
$
450 $
1,125
2,345
2. Budget Projections & Revenue Requirements
3.
4.
Fiscal Policies Review
Historical Financial Statements and Budgets
Capital Improvement Program
Revenue Requirement
Develop Proposed Rates & Fees
Utility Rate Review
Customer Data Analysis
Develop Proposed Rates •
Surcharges & Miscellaneous Fees
Water & Wastewater Connection Fees
Internal Review
1.0
0.0
0.5
1.0
1.0
0.0
0.5
0.0
3.0
2.0
4.0
1.0
2.0
12.0
2.0
3.0
1.0
2.0
14.0
2.0
1.0
0.0
0.0
0.0
0.5
0.0
0.0
0.0
0.0
4.0
12.0
4.0
12.0
60.0
5.0
40.0
50.0
9.0
44.0
2.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$
$
$
$
$
, $
$
$
$
$
2,805
730
2,118
10,615
1,385
5,970
7,058
1,595
9,305
1,880
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,805
730
2,118
10,615
1,385
5,970
7,058
1,595
9,305
1,880
Project Meetings, and Draft and Final Reports
Project Meetings (3; water & wastewater)
Prepare Draft Report
Prepare Final Study Report
Public Presentations (3)
Computer Rate Model Training
Total Study Hours
0.0
1.0
0.5
0.0
0.0
11.5
20.0
4.0
2.0
36.0
0.0
114.0
0.0
1.0
0.0
0.0
0.0
6.5
4.0
12.0
6.0
24.0
5.0
296.0
1.0
2.0
2.0
6.0
0.0
13.0
$
$
$
$
$
„„ $
4,405
2,935
1,438
10,470
675
66,403
S
$
$
$
S
$
900 $
25 $
75 $
1,350 $
225 $
3,025 $
5,305
2,960
1,513
11,820
900
69,428
City AttOTiey/General Counsel Approved Version A'Q5.06.08
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OPTIONAL SERVICES
Carlsbad intends to update its Wastewater Master Plan by early 2011. At Carlsbad's request, PCS
GROUP will be readily available to incorporate any new information from the master plan into a revised
cost of service analysis. At this time, it is estimated that this service will cost approximately $17.263.
Please see the preliminary budget by task outlined below.
Optional Master Plan Update
Labor Effort & Expense by Task
Workload by Consultant
Principal
$275.00
Project
Manager
$220.00
Technical
Advisor
$220.00
Analyst
$160.00
Admin
Support
$75.00
Total
Labor
Expenses
Direct Total
Expenses Expenses
1. Project Management & Communication
Project Management
Kick-Off Meeting & Data Collection
0.5
0.0
2.0
5.0
0.0
0.0
0.0
7.0
1.0
0.0
$
$
653
2,220
$
$
$
450 $
653
2,670
2. Budget Projections and Revenue Requirements
3
Capital Improvement Program
Revenue Requirement
0.5
0.5
2.0
4.0
0.0
0.0
12.0
36.0
0.0
0.0
$
$
2,498
6,778
$
$
$
$
2,498
6,778
. Project Meetings, and Draft and Final Reports
Prepare Draft Update Memo
Prepare Final Update Memo
Project Meeting (1)
Total Study Hours
1.0
0.5
0.0
3.0
2.0
2.0
5.0
22.0
0.0
0.0
0.0
0.0
6.0
2.0
3.0
66.0
1.0
0.5
1.0
3.5
$
$
$
„„ $
1,750
935
1,655
16,488
$
$
$
$
$
50 $
275 $
775 $
1,750
985
1,930
17,263
* Hourly rates are assumed to increase at 5% per year.
City Attorney/General Counsel Approved Version #05.06.08
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EXHIBIT 4
AGREEMENT FOR COST OF SERVICES AND RATE DESIGN STUDY SERVICES
(FCS Group, Inc.)
THIS AGREEMENT is made and entered into as of the / (TC-' day
of WV/U/7? L0j>J , 206_&, by and between the CARLSBAD MUNICIPAL
WATER DISTRICT, a Public Agency organized under the Municipal Water Act of
1911, and a Subsidiary District of the City of Carlsbad, referred to as ("CMWD"), and
and FCS Group, Inc., a California Corporation, ("Contractor").
RECITALS
A. CMWD requires the professional services of consultant that is
experienced in water utility cost of services and rate design studies.
B. Contractor has the necessary experience in providing professional
services and advice related to water utility cost of service and rate design studies.
C. Selection of Contractor is expected to achieve the desired results in an
expedited fashion.
D. Contractor has submitted a proposal to CMWD and has affirmed its
willingness and ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual
covenants contained herein, CMWD and Contractor agree as follows:
1. SCOPE OF WORK
CMWD retains Contractor to perform, and Contractor agrees to render, those
services (the "Services") that are defined in attached Exhibit "A", which is
incorporated by this reference in accordance with this Agreement's terms and
conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Contractor will exercise the reasonable professional
care and skill customarily exercised by reputable members of Contractor's
profession practicing in the Metropolitan Southern California Area, and will use
reasonable diligence and best judgment while exercising its professional skill and
expertise.
3. TERM
The term of this Agreement will be effective for a period of one year from the date
first above written.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
5. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement
term will be not to exceed Eighty Six Thousand, Six Hundred and Ninety dollars
General Counsel Approved Version #05.06.08
1
($86,690). No other compensation for the Services will be allowed except for items
covered by subsequent amendments to this Agreement. The CMWD reserves the
right to withhold a ten percent (10%) retention until CMWD has accepted the work
and/or Services specified in Exhibit "A".
Incremental payments, if applicable, should be made as outlined in attached Exhibit
"A".
6. STATUS OF CONTRACTOR
Contractor will perform the Services in Contractor's own way as an independent
contractor and in pursuit of Contractor's independent calling, and not as an
employee of CMWD. Contractor will be under control of CMWD only as to the result
to be accomplished, but will consult with CMWD as necessary. The persons used by
Contractor to provide services under this Agreement will not be considered
employees of CMWD for any purposes.
The payment made to Contractor pursuant to the Agreement will be the full and
complete compensation to which Contractor is entitled. CMWD will not make any
federal or state tax withholdings on behalf of Contractor or its agents, employees or
subcontractors. CMWD will not be required to pay any workers' compensation
insurance or unemployment contributions on behalf of Contractor or its employees or
subcontractors. Contractor agrees to indemnify CMWD within thirty (30) days for
any tax, retirement contribution, social security, overtime payment, unemployment
payment or workers' compensation payment which CMWD may be required to make
on behalf of Contractor or any agent, employee, or subcontractor of Contractor for
work done under this Agreement. At CMWD's election, CMWD may deduct the
indemnification amount from any balance owing to Contractor.
7. SUBCONTRACTING
Contractor will not subcontract any portion of the Services without prior written
approval of CMWD. If Contractor subcontracts any of the Services, Contractor will
be fully responsible to CMWD for the acts and omissions of Contractor's
subcontractor and of the persons either directly or indirectly employed by the
subcontractor, as Contractor is for the acts and omissions of persons directly
employed by Contractor. Nothing contained in this Agreement will create any
contractual relationship between any subcontractor of Contractor and CMWD.
Contractor will be responsible for payment of subcontractors. Contractor will bind
every subcontractor and every subcontractor of a subcontractor by the terms of this
Agreement applicable to Contractor's work unless specifically noted to the contrary
in the subcontract and approved in writing by CMWD.
8. OTHER CONTRACTORS
CMWD reserves the right to employ other Contractors in connection with the
Services.
9. INDEMNIFICATION
Contractor agrees to indemnify and hold harmless the CMWD and its officers,
officials, employees and volunteers from and against all claims, damages, losses
General Counsel Approved Version #05.06.08
2
and expenses including attorneys fees arising out of the performance of the work
described herein caused by any negligence, recklessness, or willful misconduct of
the Contractor, any subcontractor, anyone directly or indirectly employed by any of
them or anyone for whose acts any of them may be liable.
The parties expressly agree that any payment, attorney's fee, costs or expense
CMWD incurs or makes to or on behalf of an injured employee under the CMWD's
self-administered workers' compensation is included as a loss, expense or cost for
the purposes of this section, and that this section will survive the expiration or early,
termination of this Agreement.
10. INSURANCE
Contractor will obtain and maintain for the duration of the Agreement and any and all
amendments, insurance against claims for injuries to persons or damage to property
which may arise out of or in connection with performance of the services by
Contractor or Contractor's agents, representatives, employees or subcontractors.
The insurance will be obtained from an insurance carrier admitted and authorized to
do business in the State of California. The insurance carrier is required to have a
current Best's Key Rating of not less than "A-:VM", OR with a surplus line insurer on
the State of California's List of Eligible Surplus Line Insurers (LESLI) with a rating in
the latest Best's Key Rating Guide of at least "A:X".
10.1 Coverages and Limits.
Contractor will maintain the types of coverages and minimum limits indicated below,
unless the General Counsel or Executive Manager approves a lower amount. These
minimum amounts of coverage will not constitute any limitations or cap on
Contractor's indemnification obligations under this Agreement. CMWD, its officers,
agents and employees make no representation that the limits of the insurance
specified to be carried by Contractor pursuant to this Agreement are adequate to
protect Contractor. If Contractor believes that any required insurance coverage is
inadequate, Contractor will obtain such additional insurance coverage, as Contractor
deems adequate, at Contractor's sole expense.
10.1.1 Commercial General Liability Insurance. $1,000,000 combined
single-limit per occurrence for bodily injury, personal injury and property damage. If
the submitted policies contain aggregate limits, general aggregate limits will apply
separately to the work under this Agreement or the general aggregate will be twice
the required per occurrence limit.
10.1.2 Automobile Liability (if the use of an automobile is involved for
Contractor's work for CMWD). $1,000,000 combined single-limit per accident for
bodily injury and property damage.
10.1.3 Workers' Compensation and Employer's Liability. Workers'
Compensation limits as required by the California Labor Code. Workers'
Compensation will not be required if Contractor has no employees and provides, to
CMWD's satisfaction, a declaration stating this.
General Counsel Approved Version #05.06.08
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10.1.4 Professional Liability. Errors and omissions liability appropriate to
Contractor's profession with limits of not less than $1,000,000 per claim. Coverage
must be maintained for a period of five years following the date of completion of the
work.
10.2. Additional Provisions. Contractor will ensure that the policies of insurance
required under this Agreement contain, or are endorsed to contain, the following
provisions:
10.2.1 The CMWD will be named as an additional insured on General
Liability.
10.2.2 Contractor will obtain occurrence coverage, excluding
Professional Liability, which will be written as claims-made coverage.
10.2.3 This insurance will be in force during the life of the Agreement
and any extensions of it and will not be canceled without thirty (30) days prior written
notice to CMWD sent by certified mail pursuant to the Notice provisions of this
Agreement.
10.3 Providing Certificates of Insurance and Endorsements. Prior to CMWD's
execution of this Agreement, Contractor will furnish certificates of insurance and
endorsements to CMWD.
10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these
insurance coverages, then CMWD will have the option to declare Contractor in
breach, or may purchase replacement insurance or pay the premiums that are due
on existing policies in order to maintain the required coverages. Contractor is
responsible for any payments made by CMWD to obtain or maintain insurance and
CMWD may collect these payments from Contractor or deduct the amount paid from
any sums due Contractor under this Agreement.
10.5 Submission of Insurance Policies. CMWD reserves the right to require, at
anytime, complete and certified copies of any or all required insurance policies and
endorsements.
11. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term
of the Agreement, as may be amended from time-to-time.
12. ACCOUNTING RECORDS
Contractor will maintain complete and accurate records with respect to costs
incurred under this Agreement. All records will be clearly identifiable. Contractor will
allow a representative of CMWD during normal business hours to examine, audit,
and make transcripts or copies of records and any other documents created
pursuant to this Agreement. Contractor will allow inspection of all work, data,
General Counsel Approved Version #05.06.08
documents, proceedings, and activities related to the Agreement for a period of
three (3) years from the date of final payment under this Agreement.
13. OWNERSHIP OF DOCUMENTS
All work product produced by Contractor or its agents, employees, and
subcontractors pursuant to this Agreement is the property of CMWD. In the event
this Agreement is terminated, all work product produced by Contractor or its agents,
employees and subcontractors pursuant to this Agreement will be delivered at once
to CMWD. Contractor will have the right to make one (1) copy of the work product
for Contractor's records.
Under this agreement, CMWD agrees not to distribute the computer models
produced during this study to outside vendors without the Consultant's authorization.
14. COPYRIGHTS
Contractor agrees that all copyrights that arise from the services will be vested in
CMWD and Contractor relinquishes all claims to the copyrights in favor of CMWD.
15. NOTICES
The name of the persons who are authorized to give written notices or to receive
written notice on behalf of CMWD and on behalf of Contractor under this Agreement.
For CMWD: For Contractor:
Name Mark Stone Name Robb Grantham
Title Deputy PW Director Title Senior Project Manager
Address 5950 El Camino Real Address 225 Bush Street. Suite 1825
Carlsbad. CA 92008 San Francisco. CA 94104
Phone No. (760)438-2722 Phone No. (415) 445-8947
Email Address mston@ci.carlsbad.ca.us E-Mail Address robba@fcsgroup.com
Each party will notify the other immediately of any changes of address that would
require any notice or delivery to be directed to another address.
16. CONFLICT OF INTEREST
CMWD will evaluate Contractor's duties pursuant to this Agreement to determine
whether disclosure under the Political Reform Act and CMWD's Conflict of Interest
Code is required of Contractor or any of Contractor's employees, agents, or
subcontractors. Should it be determined that disclosure is required, Contractor or
Contractor's affected employees, agents, or subcontractors will complete and file
with the Secretary of the Board those schedules specified by CMWD and contained
in the Statement of Economic Interests Form 700.
General Counsel Approved Version #05.06.08
Contractor, for Contractor and on behalf of Contractor's agents, employees,
subcontractors and consultants warrants that by execution of this Agreement, that
they have no interest, present or contemplated, in the projects affected by this
Agreement. Contractor further warrants that neither Contractor, nor Contractor's
agents, employees, subcontractors and consultants have any ancillary real property,
business interests or income that will be affected by this Agreement or, alternatively,
that Contractor will file with the CMWD an affidavit disclosing this interest.
17. GENERAL COMPLIANCE WITH LAWS
Contractor will keep fully informed of federal, state and local laws and ordinances
and regulations which in any manner affect those employed by Contractor, or in any
way affect the performance of the Services by Contractor. Contractor will at all times
observe and comply with these laws, ordinances, and regulations and will be
responsible for the compliance of Contractor's services with all applicable laws,
ordinances and regulations.
Contractor will be aware of the requirements of the Immigration Reform and Control
Act of 1986 and will comply with those requirements, including, but not limited to,
verifying the eligibility for employment of all agents, employees, subcontractors and
consultants that the services required by this Agreement.
18. DISCRIMINATION AND HARASSMENT PROHIBITED
Contractor will comply with all applicable local, state and federal laws and
regulations prohibiting discrimination and harassment.
19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance of the Services the following
procedure will be used to resolve any questions of fact or interpretation not
otherwise settled by agreement between the parties. Representatives of Contractor
or CMWD will reduce such questions, and their respective views, to writing. A copy
of such documented dispute will be forwarded to both parties involved along with
recommended methods of resolution, which would be of benefit to both parties. The
representative receiving the letter will reply to the letter along with a recommended
method of resolution within ten (10) business days. If the resolution thus obtained is
unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded
to the Executive Manager. The Executive Manager will consider the facts and
solutions recommended by each party and may then opt to direct a solution to the
problem. In such cases, the action of the Executive Manager will be binding upon
the parties involved, although nothing in this procedure will prohibit the parties from
seeking remedies available to them at law.
General Counsel Approved Version #05.06.08
20. TERMINATION
In the event of the Contractor's failure to prosecute, deliver, or perform the Services,
CMWD may terminate this Agreement for nonperformance by notifying Contractor by
certified mail of the termination. If CMWD decides to abandon or indefinitely
postpone the work or services contemplated by this Agreement, CMWD may
terminate this Agreement upon written notice to Contractor. Upon notification of
termination, Contractor has five (5) business days to deliver any documents owned
by CMWD and all work in progress to CMWD address contained in this Agreement.
CMWD will make a determination of fact based upon the work product delivered to
CMWD and of the percentage of work that Contractor has performed which is usable
and of worth to CMWD in having the Agreement completed. Based upon that finding
CMWD will determine the final payment of the Agreement.
Either party upon tendering thirty (30) days written notice to the other party may
terminate this Agreement. In this event and upon request of CMWD, Contractor will
assemble the work product and put it in order for proper filing and closing and deliver
it to CMWD. Contractor will be paid for work performed to the termination date;
however, the total will not exceed the lump sum fee payable under this Agreement.
CMWD will make the final determination as to the portions of tasks completed and
the compensation to be made.
21. COVENANTS AGAINST CONTINGENT FEES
Contractor warrants that Contractor has not employed or retained any company or
person, other than a bona fide employee working for Contractor, to solicit or secure
this Agreement, and that Contractor has not paid or agreed to pay any company or
person, other than a bona fide employee, any fee, commission, percentage,
brokerage fee, gift, or any other consideration contingent upon, or resulting from, the
award or making of this Agreement. For breach or violation of this warranty, CMWD
will have the right to annul this Agreement without liability, or, in its discretion, to
deduct from the Agreement price or consideration, or otherwise recover, the full
amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
22. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees that any agreement claim submitted to
CMWD must be asserted as part of the agreement process as set forth in this
Agreement and not in anticipation of litigation or in conjunction with litigation.
Contractor acknowledges that if a false claim is submitted to CMWD, it may be
considered fraud and Contractor may be subject to criminal prosecution. Contractor
acknowledges that California Government Code sections 12650 et sea., the False
Claims Act applies to this Agreement and, provides for civil penalties where a person
knowingly submits a false claim to a public entity. These provisions include false
claims made with deliberate ignorance of the false information or in reckless
disregard of the truth or falsity of information. If CMWD seeks to recover penalties
pursuant to the False Claims Act, it is entitled to recover its litigation costs, including
attorney's fees. Contractor acknowledges that the filing of a false claim may subject
Contractor to an administrative debarment proceeding as the result of which
Contractor may be prevented to act as a Contractor on any public work or
General Counsel Approved Version #05.06.08
7
improvement for a period of up to five (5) years. Contractor acknowledges
debarment by another jurisdiction is grounds for CMWD to terminate this Agreement.
23. JURISDICTIONS AND VENUE
Any action at law or in equity brought by either of the parties for the purpose of
enforcing a right or rights provided for by this Agreement will be tried in a court of
competent jurisdiction in the County of San Diego, State of California, and the
parties waive all provisions of law providing for a change of venue in these
proceedings to any other county.
24. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon
CMWD and Contractor and their respective successors. Neither this Agreement or
any part of it nor any monies due or to become due under it may be assigned by
Contractor without the prior consent of CMWD, which shall not be unreasonably
withheld.
25. ENTIRE AGREEMENT
This Agreement, together with any other written document referred to or
contemplated by it, along with the purchase order for this Agreement and its
provisions, embody the entire Agreement and understanding between the parties
relating to the subject matter of it. In case of conflict, the terms of the Agreement
supersede the purchase order. Neither this Agreement nor any of its provisions may
be amended, modified, waived or discharged except in a writing signed by both
parties.
General Counsel Approved Version #05.06.08
8
26. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on
behalf of Contractor each represent and warrant that they have the legal power, right
and actual authority to bind Contractor to the terms and conditions of this
Agreement.
CONTRACTOR
*Bv:
y Y^"^"rrr' \%///? fLM/^ L
(>prinrname/titl^)
Ahi\fj±&$G/QJL.
CARLSBAD MUNICIPAL WATER
DISTRICT, a Public Agency
organized under the Municipal Water
Act ofX»1Ik and a Subsidiary Djstfct
of thA 0W/of Carlsbac
^^^&m
dosignoe-
ATTEST:c\*<
f>fif j\/E> K/loiicifti'M'^or
= $1
LORRAINE
Secretary
If required by CMWD, proper notarial acknowledgment of execution by contractor must
be attached. If a Corporation. Agreement must be signed by one corporate officer from
each of the following two groups.
*Group A.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
CFOor
Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or
assistant secretary under corporate seal empowering the officer(s) signing to bind the
corporation.
APPROVED AS TO FORM:
RONALD R. BALL, General Counsel
Deputy General Counsel
General Counsel Approved Version #05.06.08
<:> PCS GROUP
EXHIBIT "A"
SCOPE OF WORK
TASK PLAN
The following task plan outlines PCS GROUP'S structure for undertaking the data review, policy review,
analysis, review and documentation of the cost of service and rate study process. Within this task plan,
PCS has incorporated work products for each scope of work element referenced in the District's
Request for Proposal (RFP).
Task 1 - Project Management and Communication
PCS GROUP will keep an open line of communication with the District through meetings and a project
management and control plan. This plan will establish the protocols for communication and data
transfer. The plan will help to minimize the time impacts on staff, while enhancing data transfer from
staff.
1.1 Kick-off Meeting & Data Collection - PCS GROUP will hold a project kick-off meeting with
Carlsbad staff to review the scope of work, background information, initial data needs, and to establish
appropriate lines of communication for any arising concerns. The history and context of existing fees
will be reviewed and discussed as well as management preferences related to the project. PCS
GROUP will develop a preliminary written data request that will precede the project kick-off meeting, so
that readily available materials can be assembled and remaining data needs can be reviewed and
discussed. The data request will address fiscal policies and practices, historical and projected
operational and maintenance expenditures, operating transfers, non-operating revenues, debt service
requirements, replacement funding and capital improvement needs.
1.2 Communication Plan - Following the kick-off meeting, PCS GROUP will develop a project
management and control plan to facilitate communication with the District regarding progress, technical
issues and planned activities. This plan will establish the protocols for communication and data
transfer. The plan will help to minimize the time impacts on staff, while enhancing data transfer from
staff. Our project manager will be the primary client contact, with direct and targeted interaction with
the technical advisor and analyst. We will thoroughly review the data received for adequacy and
completeness and assess the need for additional data. As necessary, PCS GROUP will work with
Carlsbad to develop a plan to fill-in any data gaps when there are omissions or deficiencies in the data.
1.3 Project Meetings - PCS GROUP will participate in progress meetings with Carlsbad staff. We
have scoped three (3) meetings, combined with the Wastewater Cost of Services Study being
conducted concurrently, including the project kick-off meeting. These workshops will allow staff to
review and provide input on the financial plan.
Task 2 - Prepare Budget Projections and Assess Revenue Requirements
PCS GROUP will perform a financial analysis which evaluates utility revenue requirements that account
for all costs associated with operating and maintaining the water, and recycled water utilities. These
analyses will rely on historic expenditures and system growth; projected operating, non-operating, debt-
related and capital expenditures; increased demands; and, projected revenues.
City Attorney/General Counsel Approved Version ff05.06.Q8
10
<> FCS GROUP
The analyses will be captured in financial planning models. The models will be structured to project
revenue needs related to a 20-year planning horizon. While the primary focus of this study will be to
produce a three year rate package, the model will allow the user to evaluate both short- and long-term
rate strategies in a comprehensive manner. The model will calculate rate revenue requirements based
on cash flow, bond coverage, and fiscal policy requirements.
2.1 Fiscal Policies Review - In developing the financial models, FCS GROUP will review and evaluate
the water utility's guiding fiscal policies as they relate to capital funding, and appropriate operating,
capital, emergencies, rate stabilization and connection charge reserves/funds. We understand the
desire to cash fund capital projects over the next 5 to 10 years.
2.2 Historical Financial Statements and Budgets - FCS GROUP will develop revenue requirements
and sufficiency analyses based on historic data and projected expenditures. The analyses will extend
through 20-year planning horizons in order to provide an estimated impact of the long-term capital
program.
2.3 Capital Improvement Program - FCS GROUP will incorporate Carlsbad's capital improvement
program within its analysis, including all future capital improvement projects. FCS GROUP will
recommend a capital funding strategy based on debt ratios, replacement and expansion needs, funding
sources, and rate impacts. The model will utilize cost "S" curves that take into account the timing,
duration and costs of specific projects. This feature will allow staff to review potential projects from a
fiscal perspective and assess the feasibility of such projects before spending too much time and money
evaluating potential projects from an engineering standpoint.
2.4 Revenue Requirement - At the heart of any utility rate study is a revenue requirement, which uses
projected cash flows and debt service requirements to project revenue shortfalls. Using historical
records, FCS GROUP will project future operating and maintenance expenditures. Ongoing
expenditures will be escalated annually on a line-item basis using a range of escalation factors. For
example, variable costs, such as power, will increase not only by general cost inflation, but also with
increases in utility demands. Additionally, debt and non-operating revenues and expenditures will also
be evaluated.
Using these projections, FCS GROUP will develop financial models for the water utility that
incorporates the preceding tasks and assess the forecasted revenues through a cash flow sufficiency
test and debt service coverage test. The result of the analyses will be an accurate projection of
revenue required to service total service operations and debt. The model will consist of a functional set
of methods and data that meet the objectives set forth in the RFP, including the ability to update
revenues and expenses, and calculate costs associated with the purchase, distribution, and treatment
of water, recycled water and wastewater.
Task 3 - Develop Proposed Utility Rates Based on Cost of Service
The rate design analysis determines, using system planning and statistical data, an allocation of costs
to customer classes, defining an equitable cost-based rate burden. Since restructuring rates will almost
inevitably shift cost burdens, a valid cost allocation analysis is essential to ensuring this equitable
allocation and recovery of costs. FCS GROUP will begin with a management review of general rate
options, is then supported by a cost analysis process, and returns to a review of specific rate proposals.
3.1 Utility Rate Review- FCS GROUP will meet with utility management to review and evaluate
potential rate structure alternatives. Based on our extensive experience, we will advise Carlsbad on
key features likely to promote policy objectives while retaining equitable cost recovery. From this
City Attorney/General Counsel Approved Version #05.06.08
11
<:> PCS GROUP
session, multiple rate structure alternatives will be identified for analysis and development. A portion of
this task will be devoted to the discussion of potential drought rate structures, and the District's
objectives in achieving water usage curtailments.
3.2 Customer Data Analysis - PCS GROUP will evaluate historical billing information. Due to the
variable nature of utility rates, it is important to evaluate a multi-year trend and determine the potential
revenue lulls during low-usage years. PCS will thoroughly examine the usage data, calibrating billing
records against actual rate revenues to prevent over or under estimation of Carlsbad's water service
area customer base. This is a critical step in setting appropriate and sufficient rates.
3.3 Develop Proposed Rates - This task involves three separate components - 1) allocating costs by
function, 2) allocating costs by customer class, and 3) calculating water, drought, and recycled water.
Based on the rate evaluation performed under the previous tasks, PCS GROUP will develop rates for
the water utility based on the preferred rate structures. These rates will be based on "cost-of-service"
principles that incorporate the work performed in all previous tasks and will adhere to Proposition 218
requirements.
3.4 Surcharges and Miscellaneous Fees - PCS GROUP will review all fees, charges and surcharges
in use. We will examine current costs associated with the purchase of water the San Diego County
Water Authority, and evaluate implementing a surcharge to recover the expenses associated with these
price increases. This will allow customers to see that a portion of their rates are increasing due to
increased water purchasing costs. Additionally, PCS GROUP will determine the cost of service for other
miscellaneous fees (fire service, meter installation, reconnection fees, etc.). These fees will be based
on fully loaded labor costs and cost of materials.
3.5 Water Connection Fees - PCS GROUP will provide a connection fee study for the water utility.
Calculation of a connection fee is a simple mathematical operation; however, defining the cost and
capacity bases that make up that operation are more complex and represent the core of the connection
fee study. Basic steps in defining the basis for and computing the connection fee are as follows:
defining existing facilities in service; defining future facilities required; allocating existing and future
facilities to beneficiaries; establishing a connection equivalency basis; and, dividing allocated facility
costs by the expected growth to be served. We will incorporate the data used from the water utility cost
of service study for efficiencies.
3.6 Internal Review - PCS GROUP will conduct an independent and objective review of the proposed
rates for the water utility. This review will be performed by a senior project manager with extensive
experience developing utility rates. This proposed task is additive to the Carlsbad's original project
scope. However, we believe this proposed QA/QC process is vital to delivering tested and defensible
recommendations. We believe the level of this review is unique and reflects the depth of our resources.
Task 4 - Project Meetings, and Draft and Final Reports
Based on the findings and recommendations of this study, PCS GROUP will develop a draft and final
report, attend meetings with staff, and present to stakeholders and the CMWD Board of Directors.
4.1 Prepare Draft Report - After all analyses have been performed, PCS GROUP will develop a draft
report. The report will contain an executive summary that provides a clear and concise overview of the
study and its recommendations. The main body of the report will provide additional detail and
supporting charts and graphs. PCS GROUP will provide an electronic version of the draft report for
staff review and comment.
City Attorney/General Counsel Approved Version #05.06.08
12
<:> PCS GROUP
4.2 Prepare Final Study Report - Based on staff review and comment, PCS GROUP will finalize the
report and produce the final report (8 copies plus one unbound reproducible copy). PCS GROUP will
finalize presentation materials and provide an electronic (MS PowerPoint) version.
4.3 Presentations - PCS GROUP will make six (6) presentations, combined with the Wastewater Cost
of Services Study being conducted concurrently, in order to articulate the methodology behind the
analysis and promote the recommendations. These presentations will be aimed at the CMWD Board of
Directors and/or Citizens.
4.4 Computer Rate Model Training -At the close of this project, a one-day training session will be
held with staff. We believe that having a usable financial planning tool is a critical project deliverable.
The models will allow Carlsbad staff to run "what-if scenarios as necessary, often times eliminating no-
go projects before spending significant time or money investigating their feasibility. The model will also
be designed to be transparent, allowing staff to quickly respond to questions regarding specific impacts
to rates. As a part of this effort, training tasks will be provided after the first session to generate added
participation and insight into model use.
COST ESTIMATES
The proposed fixed costs associated with providing the services presented within this proposal amount
to $69.428. This amount includes labor, indirect and direct costs and is broken down by task as
follows:
FCS GROUP Proposed
Project Budget
Labor Effort & Expense by Task
1.
2.
3.
4.
Project Management & Communication
Project Management
Kick-Off Meeting & Data Collection
Budget Projections & Revenue Requirements
Fiscal Policies Review
Historical Financial Statements and Budgets
Capital Improvement Program
Revenue Requirement
Develop Proposed Rates & Fees
Utility Rate Review
Customer Data Analysis
Develop Proposed Rates
Surcharges & Miscellaneous Fees
Water & Wastewater Connection Fees
Internal Review
Workload by Consultant
Principal
$235.00
1.0
0.0
1.0
0.0
0.5
1.0
1.0
0.0
0.5
0.0
3.0
2.0
Project
Manager
$190.00
4.0
5.0
4.0
1.0
2.0
12.0
2.0
3.0
1.0
2.0
14.0
2.0
Technical
Advisor
$190.00
0.0
0.0
1.0
0.0
0.0
0.0
0.5
0.0
0.0
0.0
0.0
4.0
Analyst
$135.00
0.0
7.0
12.0
4.0
12.0
60.0
5.0
40.0
50.0
9.0
44.0
2.0
Admin
Support •
$65.00
2.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Total
Labor
Expenses
'
$
$
$
S
$
$
$
$
$
$
$
$
1,125
1,895
2,805
730
2,118
10,615
1,385
5,970
7,058
1,595
9,305
1,880
Direct Total
Expenses Expenses
$
$
$
$
$
$
$
$
$
$
$
$
$
450 $
$
$
$
$
$
$
$
S
$
$
1,125
2,345
2,805
730
2,118
10,615
1,385
5,970
7,058
1,595
9,305
1,880
Project Meetings, and Draft and Final Reports
Project Meetings (3; water & wastewater)
Prepare Draft Report
Prepare Final Study Report
Public Presentations (3)
Computer Rate Model Training
Total Study Hours
0.0
1.0
0.5
0.0
0.0
11.5
20.0
4.0
2.0
36.0
0.0
114.0
0.0
1.0
0.0
0.0
0.0
6.5
4.0
12.0
6.0
24.0
5.0
296.0
1.0
2.0
2.0
6.0
0.0
13.0
$
$$$
%
,,„ *
4,405
2,935
1,438
10,470
675
66,403
$
$
$
$
$
$
900 $
25 $
75 $
1,350 $
225 $
3,025 $
5,305
2,960
1,513
11,820
900
69,428
C'Ly At:orrGy/Ganorai Counsel Aop'cved Version #05.06.08
13
«:>PCS GROUP
OPTIONAL SERVICES
Carlsbad intends to update its Water and Recycled Water Master Plans by early 2011. At Carlsbad's
request, PCS GROUP will be readily available to incorporate any new information from the master
plans into a revised cost of service analysis. At this time, it is estimated that this service will cost
approximately $17.263. Please see the preliminary budget by task outlined below.
Optional Master Plan Update
Labor Effort & Expense by Task
1. Project Management & Communication
Project Management
Kick-Off Meeting & Data Collection
Workload by Consultant
Principal
$275.00
0.5
0.0
Project
Manager
$220.00
2.0
5.0
Technical
Advisor
$220.00
0.0
0.0
Analyst
$160.00
0.0
7.0
Admin
Support
$75.00
1.0
0.0
Total
Labor
Expenses
$
$
653
2,220
Direct Total
Expenses Expenses
$
$
$
450 $
653
2,670
2. Budget Projections and Revenue Requirements
Capital Improvement Program
Revenue Requirement
0.5
0.5
2.0
4.0
0.0
0.0
12.0
36.0
0.0
0.0
$
$
2,498
6,778
$
$
$
$
2,498
6,778
3. Project Meetings, and Draft and Final Reports
Prepare Draft Update Memo
Prepare Final Update Memo
Project Meeting (1)
Total Study Hours
1.0
0.5
0.0
3.0
2.0
2.0
5.0
22.0
0.0
0.0
0.0
0.0
6.0
2.0
3.0
66.0
1.0
0.5
1.0
3.5
$
$
$
„„ $
1,750
935
1,655
16,488
$
$
$
$
$
50 $
275 $
775 $
1,750
985
1,930
17,263
* Hourly rates are assumed to increase at 5% per year.
14
C'iy Atiorrey/Gararal Couisol Approved Vorsior #05.06.08
COST OF SERVICES & RATE DESIGN STUDYCOST OF SERVICES & RATE DESIGN STUDYWATER & WASTEWATER UTILITIESWATER & WASTEWATER UTILITIES
••Key objectiveKey objective: To develop a financial plan and : To develop a financial plan and rates necessary to meet the CMWD/City operating rates necessary to meet the CMWD/City operating and capital needs of the water and wastewater and capital needs of the water and wastewater utilitiesutilities••Most recent cost of service study for Carlsbad was Most recent cost of service study for Carlsbad was completed in January 1996completed in January 1996Why conduct a Cost of Service Study?Why conduct a Cost of Service Study?
••Conclusions will include a financial plan and rate Conclusions will include a financial plan and rate model options that will ensure the financial model options that will ensure the financial stability of City and CMWD utilities during normal stability of City and CMWD utilities during normal and drought conditions, and promote conservationand drought conditions, and promote conservation••Optional component asks consultant to revise cost Optional component asks consultant to revise cost of services analysis as needed based on new of services analysis as needed based on new information from the Water & Wastewater Master information from the Water & Wastewater Master Plan Updates expected to be completed by 2011Plan Updates expected to be completed by 2011••NoteNote: Each utility will be financially evaluated on : Each utility will be financially evaluated on a a ““stand alonestand alone””basis; that is, no subsidies basis; that is, no subsidies between the utilities should occurbetween the utilities should occurCost of Services Study ConclusionsCost of Services Study Conclusions
Overview of Rate Study ProcessOverview of Rate Study ProcessRevenue Requirement AnalysisRevenue Requirement AnalysisRevenue Requirement AnalysisCost of Service AnalysisCost of Service AnalysisCost of Service AnalysisRate Design AnalysisRate Design AnalysisRate Design AnalysisCompares the revenue of the utility to the expenses to determine the overall rate adjustment requiredAllocates the revenue requirements to the various customer classes of service in an equitable mannerConsiders both the level and structure of the rate design to collect the appropriate and targeted levels of revenue
••Request for Proposal (RFP) was advertised and Request for Proposal (RFP) was advertised and placed on the Cityplaced on the City’’s bid sites bid site••Eight responses to the RFP were received. Based Eight responses to the RFP were received. Based on a best value analysis, staff recommends FCS on a best value analysis, staff recommends FCS Group, Inc. as the best firm to perform the studyGroup, Inc. as the best firm to perform the study••Complete the cost of service study by Spring 2009. Complete the cost of service study by Spring 2009. Incorporate new or revised financial policies in the Incorporate new or revised financial policies in the FY 2009FY 2009--10 Water and Wastewater operating and 10 Water and Wastewater operating and capital budgets capital budgets Selection of Consultant:Selection of Consultant:
1.1.Adopt City Council Resolution No. 2008Adopt City Council Resolution No. 2008--308 308 approving an agreement with FCS Group, Inc., approving an agreement with FCS Group, Inc., to provide a comprehensive Cost of Services and to provide a comprehensive Cost of Services and Rate Design Study for wastewater operations; Rate Design Study for wastewater operations; andand2.2.Adopt CMWD Board of Directors Resolution No. Adopt CMWD Board of Directors Resolution No. 1345 approving an agreement with FCS Group, 1345 approving an agreement with FCS Group, Inc., to provide a comprehensive Cost of Inc., to provide a comprehensive Cost of Services and Rate Design Study for potable and Services and Rate Design Study for potable and recycled water operationsrecycled water operationsStaff Recommendations:Staff Recommendations: