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HomeMy WebLinkAbout2025-077 AGRMT HDR Engineering Inc. I,WCITY or Personal Services Agreement ASHLAND City Information Consultant Information City of Ashland Firm Name:HDR Engineering Inc. Attn: Scott Fleury Contact: Josiah Close 20 East Main Street Address: PO Box 74008202 Ashland, Oregon 97520 Chilcago, IL 60674 Phone: Phone:488-5587 Phone: (360) 570-7294 Email: scott.fleuty@ashland.or.us Email; josiah.dose@hdrinc.com Contract Summary Procurement Method. Direct award'. Completion Date: 06f30f2026 Contract Amount: $72,868•00 not to exceed Assistance with conducting rate stud Description of Services:. g y for Wastewater and Stormdrain Supporting Documents: Scope of services Dated: Dated: Dated: ' Dated: This Personal Services Agreement (hereinafter"Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and the Consultant listed under Consultant Information above, ("hereinafter "Consultant"), for the services listed under Description of Services and Supporting Documents as noted in the Contract Summary above. In the event of conflict between provisions of the Supporting Documents, the Supporting Documents shall be given precedence in the order listed above. i This Agreement, the Exhibits and the Supporting Documents shall be construed to be mutually complementary and,supplementary wherever possible. In the event of a conflict which cannot be so resolved, the provisions of this Agreement itself shall control over any conflicting provisions in any of the exhibits or supporting documents. The Consultant's initials [_E herein signify acknowledgment and agreement to this provision, if applicable, or if not sign "NIA". i Consultant's services are collectively referred to in this Agreement as the "Work." Page 1 of 8 Personal 'Services Agreement Between the City of Ashland and HDR Engineering Inc. NOW THEREFORE, in consideration of the mutual covenants contained herein, the City and Consultant hereby agree as follows: 1. Effective Date and Duration: This Agreement shall become effective on the date of execution on behalf of the City, as set forth below (the "Effective Date"), and unless sooner terminated as specifically provided herein, shall terminate upon the City's affirmative acceptance of Consultant's Work as complete and Consultant's acceptance of the City's final payment therefore, but not later than the Completion Date listed under the Contract Summary in the table one page one of this agreement. 1.1. Time is of the essence. Time is of the essence for Consultant's performance of each and every obligation and duty under this Agreement. City, by written notice to Consultant of default or breach, may at any time terminate the whole or any part of this Agreement if Consultant fails to provide the Work called for by this Agreement within the time specified herein or within any extension thereof, provided City shall not terminate with cause unless City provides written notice of the breach and Consultant fails to cure within fifteen (15) days of receipt of such notice. 2. Compensation: City shall pay Consultant the sum listed as the"Contract Amount" under the Contract Summary on page one of this document as full compensation for Consultant's performance of all Work under this Agreement. In no event shall Consultant's total of all compensation and reimbursement under this Agreement exceed the Contract Amount without the express, written approval from the appropriate Department Head or City Manager. Payments shall be made within thirty(30)days of the date of receipt by the City of Consultant's invoice. Should this Agreement be terminated prior to completion of all Work, payments will be made for any phase of the Work completed and accepted as of the date of termination. 3. Consultant Obligations: 11. Independent Contractor Status. Consultant is an independent contractor and not an employee of the City for any purpose. Consultant shall have the complete responsibility for the performance of this Agreement. Consultant shall provide workers' compensation coverage as required in ORS Chapter 656 for all persons employed to perform Work pursuant to this Agreement. Consultant is a subject employer that will comply with ORS 656.017. 3.2. Qualified Work. Consultant has represented, and by entering into this Agreement now represents,that all personnel assigned to the Work to be performed under this Agreement are fully qualified to perform the services to which they will be assigned in a skilled manner and, if required to be registered, licensed, or bonded by the State of Oregon, are so registered, licensed, or bonded. Consultant shall perform all services with the care and skill ordinarily used by members of Consultant's profession practicing under the same or similar circumstances at the same time and in the same locality. 3.3. Assignment. Consultant shall not assign this Agreement or subcontract any portion of the Work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract of the Work shall not create any contractual relation between the assignee or subcontractor and City. Page 2 of 8 Personal Services Agreement Between the City of Ashland and HDR Engineering Inc. 3.4. Work Performance Obligation. Consultant shall, at its own risk, perform the Work described in the Description of Services and in the Supporting Documents and, unless otherwise specified in this Agreement,furnish all labor, equipment, and materials required for the proper performance of such Work. 3.5, Certification. Consultant agrees to and shall sign the certification attached hereto as "Exhibit C" and incorporated herein by this reference. 4. Insurance; Consultant shall, at its own expense, maintain the following insurance: 4.1. Worker's Compensation. Worker's Compensation insurance in compliance with ORS 656,017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers. 4.2. Workers' Compensation Exemption. If applicable, Consultant affirms and certifies that it is exempt from providing Workers' Compensation per ORS 656.027. Exemption criteria: Enter criteria here or delete if not applicable Consultant initials if exempt: Date: 4.3. Professional Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per claim. This is to cover any damage caused by error, omission or negligent acts related to the Work to be provided under this Agreement. Consultant agrees to continuously maintain its professional liability insurance coverage for not less than three (3) years after completion of all services covered by this Agreement. 4.4. General Liability insurance with a combined single limit, or the equivalent, of not less than$2,000,000(two million dollars) per occurrence for Bodily Injury, Death,and Property Damage, 4.5. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars)for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. 4.6. Notice of cancellation or change. There shall be no cancellation or material change to the insurance coverage(s)without thirty(30)days'prior written notice from the Consultant or its insurer(s) to the City. 4.7. Additional Insured/Certificates of Insurance. Consultant shall name the City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Agreement. The consultant's insurance is primary and non-contributory. As evidence of the insurance coverages required by this Agreement, the Consultant shall furnish acceptable insurance certificates prior to commencing the Work under this Agreement. The certificate will specify all of the parties who are Additional Insureds. Insuring Page 3 of 8 Personal Services Agreement Between the City of Ashland and HDR Engineering Inc. companies or entities are subject to the City's acceptance. If requested, redacted copies of insurance policies shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. 5. Termination: 5.1, Mutual Consent. This Agreement may be terminated at any time by the mutual consent of both parties. 5.2. City's Convenience. This Agreement may be terminated by City at any time upon not less than thirty (30) days' prior written notice delivered by certified mail or in person. 5.3. For Cause. City may terminate or modify this Agreement, in whole or in part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: • If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services; or • If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or • If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this Agreement is for any reason denied, revoked, suspended, or not renewed. 5.4. For Default or Breach. Either City or Consultant may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and its intent to terminate. If the party committing the breach has not entirely cured the breach within fifteen (15) days of the date of the notice, or within such other period as the party giving the notice may authorize in writing, then the Agreement may be terminated at any time thereafter by a written notice of termination by the party giving notice. 5.4.1. Default: The Consultant shall be in default of this Agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation under the Agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type identified in its obligations under the Agreement; or attempts to assign rights in, or delegate duties under, this Agreement. Page 4 of 8 Personal Services Agreement Between the City of Ashland and HDR Engineering Inc. 5.5. Obligation/Liability of Parties. Termination or modification of this Agreement pursuant to subsections 5.1, 5.2, or 5.3 above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless of whether such notice is given pursuant to subsection 5.1, 5.2, 5.3, or 5.4 of this section, Consultant shall immediately cease all activities under this Agreement, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall deliver to City all documents, information, works-in-progress and other property that are or would be deliverables had the Agreement been completed. City shall pay Consultant for Work performed prior to the termination date if such Work was performed in accordance with this Agreement. 5.6. The rights and remedies of City provided in this subsection are not exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. 6. Indemnification: Consultant hereby agrees to defend, indemnify, save, and hold City, its officers, employees, and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, or other damages resulting from injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of whatsoever nature to the extent caused by negligent acts, errors or omissions in the performance of this Agreement by Consultant (including but not limited to, Consultant's employees, agents, and others designated by Consultant to perform Work or services attendant to this Agreement). However, Consultant shall not be held responsible for any losses, expenses, claims, costs, judgments, or other damages, caused by the negligence of City. 7. Consultant's Compliance with Tax Laws: Consultant represents and warrants to the City that: Consultant shall comply with all Oregon tax laws, including but not limited to ORS 305.620, ORS 305.380(4), and ORS Chapters 316, 317, 318, in addition to any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions and any tax provisions imposed by a political subdivisions of the State of Oregon. 8. Living Wage Requirements: If the amount of this Agreement is $26,429.65 or more, Consultant is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter, to all employees performing Work under this Agreement and to any Subcontractor who performs 50% or more of the Work under this Agreement. Consultant is also required to post the notice attached hereto as "Exhibit B" predominantly in areas where it will be seen by all employees. 9. Notice: Whenever notice is required or permitted to be given under this Agreement, such notice shall be given in writing to the other party by personal delivery, by sending via a reputable commercial overnight courier, by mailing using registered or certified United States mail, return receipt requested, postage prepaid, or by electronically confirmed at the addresses set forth on page one of this agreement with a copy to: Page 5 of Personal Services Agreement Between the City of Ashland and HDR Engineering Inc. City of Ashland —Legal Department 20 E. Main Street Ashland, Oregon 97520 Phone: (541) 488-5350 10. General Provisions: 10.1. Ownership of Work/Documents: All Work, work product, or other documents produced in furtherance of this Agreement belong to the City, and any copyright, patent, trademark proprietary or any other protected intellectual property right shall vest in and is hereby assigned to the City. Any modification or reuse of the Work, work product, or other documents by the City for purposes other than those intended by this Agreement shall be at the City's sole risk and without liability to Consultant. 10.2. Non-appropriations Clause - Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this Agreement within the City's fiscal year budget. Consultant understands and agrees that City's payment of amounts under this Agreement attributable to Work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this Agreement. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this Agreement without penalty or liability to City, effective upon the delivery of written notice to Consultant, with no further liability to Consultant. 10.3. Statutory Requirements: The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 27913.235. 10.4. Nondiscrimination: Consultant agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of any Work under this Agreement when employed by Consultant. Consultant agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Consultant agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.110. 10.5. Governing Law: This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for litigation of any action arising under this Agreement shall be in the Circuit Court of the State of Oregon for Jackson County unless exclusive jurisdiction is in federal court, in which case exclusive venue shall be in the federal district court for the district of Oregon. Each party expressly waives any and all rights to maintain an action under this Agreement in any Page 6 of Personal Services Agreement Between the City of Ashland and HDR Engineering Inc. other venue, and expressly consents that, upon motion of the other party, any case may be dismissed, or its venue transferred, as appropriate, so as to effectuate this choice of venue. 11. Merger: This agreement and the attached exhibits constitute the entire understanding and agreement between the parties. No waiver, consent, modification or change of terms of this agreement shall bind either party unless in writing and signed by both parties. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this agreement. Consultant, by signature of its authorized representative, hereby acknowledges that he/she has read this agreement, understands it, and agrees to be bound by its terms and conditions. 12. No Third Party Beneficiary: This Agreement shall not be construed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action under this Agreement. 13. Reliance: Consultant shall be entitled to rely upon information and services provided by the City, provided that Consultant shall provide the City prompt notice of any known defects in such information and services. 14. Cost Estimates: Any cost estimates or opinions of probable project/construction cost provided by Consultant are made on the basis of information available to Consultant and on the basis of Consultant's experience and qualifications, and represents its judgment as an experienced and qualified professional engineer. However, since Consultant has no control over the cost of labor, materials, equipment or services furnished by others, or over the construction contractors' methods of determining prices, or over competitive bidding or market conditions, Consultant does not guarantee that proposals, bids or actual project or construction cost will not vary from opinions of probable cost Consultant prepares. Page 7 of 8 Personal Services Agreement Between the City of Ashland and H©R Engineering Inc. WITNESS WHEREOF, the parties have executed this Agreement in their respective names by their duly authorized representatives as of the dates indicated below, This Agreement may be executed in two counterparts, each of which shall be deemed an original, with equal force and effect as if executed in a single document. City of Ashland: HDR Engineering Inc. (Consultant) By: by T—y EVe�,n 202&09 07 21:11 MOT CIO' 9/17/2025 Signature Tracy Ellwein Date Printed Name Senior Vice President Title Purchase Order No. 09/07/2026 Date (IN_9 is to be submitted with this signed Agreement) APPROVED AS TO FORM: Carmel Zahran City Attorney 9.17.25 Date Page 8 of 8 Personal Services Agreement Between the City of Ashland and HDR Engineering Inc. City of Ashland, Oregon I City of Ashy LIVING ALL employers WAGE �. �. livingwith City of Ashland laws regulating payment of wage. 1 • per hour, effective June 30, 2025. The Living Wage is adjusted annually every �l r June 3�O by the Consumer Price Index. Employees - paid a project or portion of the 401 K, and IRS eligible business of their employer, if cafeteria plans (including living wage: the employer has ten or more childcare) benefits to the employees, and has received employee's amount of wages. For all fours worked under a financial assistance for the service contract between their project or business from the Note. For temporary and part- employer and the City of City of Ashland over$27,163. time employees, the Living Ashland if the contract Wage does not apply to the exceeds$27,163 or more, If their employer is the City of first 1040 hours worked in any Ashland, including the Parks calendar year. For more For all hours worked in a and Recreation Department. details, please see Ashland month,if the employee spends Municipal Cade Section In calculating the living wage, 3.12.020. 50%or more of the employee's employers may add the value time in that month working on of health care, retirement, F or additional information: Call the Ashland City Manager's office at 541-466-6002 or write to the City Manager, City Hall, 20 East Main Street, Ashland„ OR 07520,or visit the City's website at e ww.asMand, r. s. � Notice to Employers; This notice must be posted in areas where it can be seen by all employees. Apr. CI °rY or` Exhibit C Certifications/Representations: Consultant„ by and through its authorized representative, under penalty of perjury, certifies that (a) the number shown on the attached W-J form is its correct taxpayer ID (or is waiting for the number to be issued to it and (b) Consultant is not subject to backup withholding because: (i) it is exempt from backup withholding, or(ii) it has not been notified by the Internal Revenue Service (IRS)that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS, has notified it that it is no longer subject to backup withholding. Consultant further represents and warrants to City that: (a) it has the power and authority to enter into this Agreement and perform the Work, (b) the Agreement, when executed and delivered, shall be a valid and binding obligation of Consultant enforceable in accordance with its terms, (c) the work under the Agreement shall be performed in accordance with the customary professional standards, and (d) Consultant is qualified, professionally competent, and duly licensed (if applicable) to perform the Work. Consultant also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, it is an independent contractor as defined in the Agreement, it is authorized to do business in the State of Oregon, and Consultant has checked four or more of the following criteria that apply to its business. rF (1) Consultant carries out the work or services at a location separate from a private residence or is in a specific portion of a private residence, set aside as the location of the business. r (2) Commercial advertising or business cards or a trade association membership are purchased for the business. rF (3) Telephone listing is used for the business separate from the personal residence listing. rT (4) Labor or services are performed only pursuant to written contracts. i r (5) Labor or services are performed for two or more different persons within a period of one year. i r (6) Consultant assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission (professional liability) insurance or liability insurance relating to the Work or services,to be provided. f Consultant's signature 09/07/20,25 f Date Page 1 of 9: Exhibit C City of Ashland I Wastewater and Storm Drain Rate Study Scope of Services FN Scope of Services The City of Ashland (City) requested assistance to conduct a wastewater collection, wastewater treatment, and storm drain rate study (Study), Given the discussions of the goals and objectives with City staff, the following scope of services has been developed. Taal( I - r oect Administration & wii iity Assurance iµiaiity Control QA, , HDR's project manager is responsible for the overall) quality, schedule, and budget of the Study. Our successful projects are accomplished through our project manager's close coordination and communication with the City's project manager. Additionally, HDR has a specific and detailed QA/QC process for our projects. The Study will be reviewed using HDR's company-wide internal' QA/QC Program and documentation. Taisk Activities: ' HDR QA/QC procedures and internal documentation will be used. HDR project manager is responsible for meeting a;nd fulfilling QC requirements., Expected City Staff Support: The City's project manager to work closely with HDIR's project manager to coordinate the Study schedule and budget Deliverables: HDR project manager will provide monthly invoices and progress reports ).ask 2 Rota Collectiorri HDR will provide an email containing a written data request to the City prior to Task 3 so that it can be discussed at the meeting and questions on the data needs resolved. The data and information requested for the Study should be readily available information (e.g., financial, t statistical, customer). HDR will review the data and information and will provide the City with documentation of the data received along with further questions, clarifications, or outstanding data needs. Task Activities: " Develop a written data request and provided to the City electronically via email v" identify and resolve outstanding data constraints or data issues J Expected City Staff Support: Gather the data requested in, the written data request provided by HDR Discuss data constraints or outstanding data needs with HDR ' Deliverables: An initial written data request to the City provided electronically Email documentation of data received and provide the City with outstanding data needs ras . IInItial Project Kick-Off MecAing The initial project meeting is important to the overall success of the Study as it provides a key City of Ashland I Wastewater and Starnn Drain hate Study Scope of Services FN I foundation for the rate study process aind coordination between HDR and the City. This meeting also allows both parties to discuss in detail the overall goals, objectives, approach, methodology, and schedule while discussing Study issues and concerns that either party may have. It is proposed that the initial project meeting be held virtually and will be approximately one hour in length. Task Activities; V" Schedule an initial project meeting with the City"s wastewater and storm drain rate study tea m Meeting is proposed to be held virtually and attended by up to two HDR project staff Expected City Staff Support: '' Have key management/project team members attend a one-hour virtual kick-off meeting V� Confirm the City's goals and objectives for the Study Deliverables. ' Kick-off meeting agenda outlining the Study objectives, tasks, and schedule f"asl( 4— Revenue Requirement Analysis The reveniue requirement analysis is the first major analytical portion of the comprehensive rate study process. This task considers the prudent and proper funding for O&M and capital expenditures and evaluates the need for rate adjustments over the time period selected. The financial model and revenue requirement analysis for each utility will be developed for a ten- year projected time period, with a focus on the first five years for rate setting purposes. A calsh basis methodology will be used as it was used for the recent water rate study for the City and is also the typical methodology used by municipal utilities.The cash basis methodology sums l each utilities operating and maintenance expenses, taxes and transfers, rate funded capital, and annual'debt service to determine the total revenue requirement.The total revenue requirement, minus miscellaneous revenues, produces the balance of funds required from rates. The revenue requirement is composed of two major types of expenses or costs. operating costs and capital costs.Operating costs are generally projected from historical or budgeted costs, using escalation factors for future costs, and adjusted for known changes in operations (e.g., changes in levels of service/personnel, operating costs, growth/expansion). HDR will begin with City's adopted budgets for each utility and project costs into the future using escalation factors for the different types of costs that City incurs (e.g., labor, benefits, electricity, chemicals). Operating costs will also be analyzed and adjusted for changes in service levels or customer growth as identified' by City staff. Additionally, the storm drain utility does not currently have a clearly established franchise charge such as the other City's utilities do. As part of the development of the revenue requirement, an approach will be developed and reviewed with the City. The costs associated with the proposed' franchise charge for the storm drain utility will be included in the revenue requirement analysis. City m Ashland|Wastewater and Storm Drain Rate Study Q��� Scopemse^��, ����� The starting point for projecting capital expenditures will be C|tv's most recent capital improvement plan for the wastewater and storm drain utilities. In the financial planning process, consideration should be given to maximizing the capital improvement expenditures, while attempting to minimize rate impacts to the utility's customers. The capital (improvement) funding plan is developed omoyear-by-year basis for the projected ten-year period. The capital projects are listed by year with the estimated (planned)outside funding sources for each pr 'eci. The balance of projects not funded by the available onQmcms uffund's must be financed from a combination of long-term debt and rates (or de6erred). |tis the balancing of the use oflong-term debt tnthe impact on rates that iscritical to the analysis, This framework provides the proper approach to evaluate the financial/rate implications mfthe planned capita{ improvements. For each utility, HDRvviUU work closely with the City to evaluate the current |evm|o of funding for replacement capital and develop a long-term plan to increase funding to appropriate and adequate levels. HDRvvil| use financial targets based on either the Cit«'s current established financial policies, or absent clear policy direction, industry customary practices. The revenue, requirement analysis is designed to provide an understanding of the total costs to operate the utility from year to year. While the analysis is very detailed, an important step is to summarize those results and findings into an easy-to-understand format. HDR will develop summary tables for the revenue re�uire,ment analysis for each utility to provide easy to understand findings and results. Another important element of the Study is the potential need for a rate transition plan.The Study will develop a rate transition plan —as necessary and for each utility-10 adjust rates over time, given the funding requirements and constraints of each utility. As the Study progresses, HDR will meet with the City'y project team to review the draft results of the revenue requirement analyses. The objective of the internal review mnee1Ung is to provide City with an understanding of the overall methodology, while reviewing the key inputs and assumptions of the analysis for each utility. In this way, City staff will clearly understand the approach and methodology used by HDRto develop the analysis and gain City staff confirmation nf the key inputs and assumptions. Based nm input from City's project tearn, thenavenuerequiremnentvvi|| be finalized. Using a generally accepted rate-setting mmethodo|ogy, develop m revenue requirement analysis for the sewer utility for a projected 10-yearperimd, with a focus onthe first five years for rate ` setting purposes. The revenue requirement analyses will establish the cost-based level of revenue tVbe collected from rates(O&M and capital),The analysis will also examine keyfinancial performance indicators such as debt service coverage and reserve levels. Once the draft revenue requirement has been developed, it is proposed to hold atvvo-hour meeting at the City's offices to review the assumptions,approach, and draft results.This meeting would be attended by HDF's project manager and analyst and it is proposed to be held in conjunction with the Task 5 review meeting. � City m Ashland |Wastewater and Storm Drain Rate Study ��� mmp,a�� e* ���� Task Activities: *~ Wastewater and storm drain revenue requirement analyses for a projected ten-year period, with the focus on the first five years, that considers the, necessary operating and capital needs of each utility * Develop financiaU/nnte model for each utility to project revenues and expenditures (operating and capital costs) for a ten-year period with the focus mnthe next five-year period for setting rates ~� Develop a franchise charge approach for the City"s storm drain utility m� Develop a capital funding plan for the Ot»'s wastewater and storm drain C|P and a consistent annual funding source for renewal and replacement capital projects fnreach If needed, develop a rate transition plan to smoothly adjust the overall levels of rate revenues for each utility ^� Recommendations regarding key financial indicators (e.g., debt service coverage, capital fund inQ/na placement through rates, reserve levels) Expected City Staff Support. V Provide as-needed assistance tn clarify the Oty's data and information V Provide as-needed data refinements oradditional data v' Attend a 1wo-hou�r meeting at the Citu's offices to review the revenue requirement analysis Task 5 ~~ Cost of Service Analysis A cost-of-service analysis proportionally distributes the revenue requirement between the customer classes of service. The basis for establishing rates that are cost-�ased and proportional has traditionally been cost ofservice principles and methodologies. Generally accepted cost-of- service methodologies are discuissed in, detail for wastewater utilities within the Water Environment Federation's Manual of Practice No. 27, Financing and Charges for Wastewater Systems. Although there is not o specific industry manual utilized for the storm drain cost of service, the principles, methodologies, and approaches are similar in nature which will then be tailored to the Cit/ootnrmm drain utility. Within the uost-of-mervice analyses for each utility, the corresponding revenue requirement is funttinna|ized, allocated, and distributed to the identified customer classes o{service. A cost of service analysis typ�|ca||y reviews a one-year period (i.e, the test year) toestablish, cost-based rates for each utility. For cost of service purposes, distributing the revenue requirement developed in Task 4 for the rate setting year(e.g., FY 2027 starting July 1, 2026)would appear to be appropriate. /\san alternative, the rate implementation may be January 1, 2025 (FY2025). |n discussion with the City, itiyundecided the final timing mf implementation of the proposed rates but the final test year selection for each utility will align with the rate adoption. Fumct[omaUizatiom refers tn the arrangement ufthe cost data into its basic cost categories. Next thefwmctiuwalized costs are allocated to the appropriate cost component(s) based upon the reason why the cost was incurred.As an example-for a wastewater utility-allocation determines | mmo,xmumu |Wastewater w"omomn Drain Rate Study u_��=� s�pm^/uam�ey Q~���� whether a specific cost was incurred to meet a volume(NovV) strength (8O[\TSS),ora customer- related need. Typically, storm drain, omroes back to either an irnpen/iouls surface assumption or cost per equivalent unit. The allocation of City's costs will be based on generally accepted cost of service techniques and the specific system and customer characteristics of the City's wastewater and storm dns|m systems. As a part of this task, it is assumed the City will guide and assist in the identification of the customer classes ufyerv/cc to be reviewed. An important objective of the cost of service is to proportionally distribute the costs to each class of service. HDR will work with the City to n2VieVV historical billing data and develop proportional distribution factors. The newt step is to distribute each of the allocated costs to the customer classes of service, using distribution factors. HDR will develop distribution factors for each utility that are proportional to the customer classes ofservice and rely on City-specific data. From the above process, o summary page of the cost of uon/iva analysis for each utility is developed and will be included in the Task 7 written report, The summary page compares the difference between the current level of rate revenue contribution and the proportionally distributed costs for each class. This provides anunderstanding o{the relationship between the costs each customer class of service places on the system and the revenues received from the customers for each utility. From this summary, a determination can be made as to the revenue/rate adjustments, by class of service, which are reflective of cost responsibility. Finally, the cost of service provides average wmit costs, or cost-based rates. These cost-based rates are used as the starting point for the development of the final proposed wastewater and storm drain rates. Average unit costs also provide City with an understanding of the cost/rate relationship between fixed and variable,costs for each utility. As the Study progresses, HDR will meet with the City project tearnto review the results ufthe cost of service analyses in conjunction with Task 4. The objective of the internal review meeting is to provide the City with an understanding of the cost of service analyses for each utility and provide input on the recommendations for implementing the results. From the cost of service ame|Voio completed, the City will have an understanding of the cost-basis for the proposed wastewater and storm drain rates to be developed in Task 5. Task Activities: ~,' Utilize generally accepted cost of service methodologies (i.e., VVEF MOP #27\ to proportionally distribute the Qty's rmwcnUm requirement to the customer classes of service for each utility ~/ Summarize the results of the analyses and develop average unit costs for each utility *° A proportional distribution of City's wastewater and storm drain revenue requirement to the identified customer classes ofservice * Average unit costs (e.g., $/cuixtnnner/rnooth, $/1"OQ0 gallons, $/|b.TSS andBOC}) I, City of Ashland Wastewater and Storm Drain Rate Study Scope of Services FN Expected City Staff Support. Discuss City's wastewater and storm drain system and facilities V Assist in determining the customer classes of service for each utility Attend a two-hiour in person meeting(in conjunction with the Task 4 meeting)to review the draft cost of service analysis for each utility Review the key assumptions and'results of the wastewater and storm drain cost of service analyses rack 6 - Rate Desigri analysis The development of proposed wastewater and storm drain rates is the final analytical task of the rate study process. This task will result in up to two rate structure alternatives for consideration by the City for each utility. For each rate structure alternative, HDR will provide bill comparisons to demonstrate the bill impacts to customers. Each rate design will be discussed with City staff to review the compatibility with the current billing system. At the conclusion of thiis task, HDR will provide a recommendation on the proposed wastewater and storm drain rate structures and recommended rates for adoption. The proposed rates for each utility will be developed for a five-year period. Task Activities: Utilize the results of the revenue requirement and cost of service analyses to establish the proposed rates for each utility V Review the city's existing rate structure and discuss potential alternatives for each utility V Review the City's rate design goals and objectives (e.g., revenue stability, ease of administration, ease of customer understanding) Develop up to two wastewater and storm drain rate design alternatives that meet the City's objectives and are cost-based and proportional, the final recommendation will be included in the written report. V Proposed rates will be developed for a five-year period V' Provide customer bill comparisons for each alternative developed to demonstrate the potential bill impacts Expected City Staff Support: Discuss the City's rate design goals and objectives and potential rate structure alternatives for each utility Review rate designs for appropriateness, provide direction for the preferred alternative V Confirm that rate design alternatives are compatible with the City's current billing system for both utilities Task ' - Written Report ' At the completion of the technical analyses, HDR will develop a draft written report for the wastewater and storm drain utilities. HDR's written reports are intended to document the City m Ashland[Wastewater and Storm Drain Rate Study Scope of Services activities undertaken as a part of the project, along with our findings, conclusions, and recommendations. Attached to the report will be the exhi'bits developed as a part nf the Study (revenue neq:uinemments, cost of service, and rate design for each utility). The City will review the draft report and provide comments to HDR within two weeks. Based on the�ity's feedback, HDR will develop the final report. Task Acdu|ties,: ^� Deve[oponelectronic/VVord and PDF\draft wastewater and storm drain report for review and comment by the City */ Incorporate changes or comments from the draft report into the final report ~" Provide a Microsoft VVnrclamd Adobe PDF copy af the final report Expected City Staff Support: w/ Review and comment on the draft written wastewater and storm drain report within two weeks Deliverables: v� /\ draft and final written wastewater and storm drain report in electronic format (e.8, Word, PDF) Task 8 - public F'resentationg To effectively communicate the results of the Study, HDR recommends at least two public meetings. This includes presentation on the draft results including the find�ings, conclusions, and recommendations of the Study aowell an the final proposed wastewater and storm drain rates. HDR will prepare the presentation materials (i.e., PovverPo|nt\ and Josiah Close will be present to provide the presentations. Should additional public meetings urpresentations be required, they will be provided on a time and material basis with, prior approval of the City. /t is assumed that one meeting will!be attended virtually and one in person byHDR'x project rnanager. Task Activities: */ Develop the presentation materials based on the Study results and recommendations */ Josiah Close will attend the public meet imgs/prememtotinns Expected Cit«^sStaff Support: ~' Review and comment on the proposed handouts for the public meetings Deliuern6l�es: =/ Up to two public presentations (one virtual, one in person) to present the finding, conclusions, and recommendations of the Study Task 9 ~ Rate Model HUR will develop financial/rate models for the Cit«'s wastewater and storm drain rate study based in Microsoft ExceU.The models will be specifically developed fnrthe Cit»'svvaytevvateramd storm drain util|ty. The financial/rate models are designed and intended to be technically City of Ashland i Wastewater and Storm Draln Rate Stody scope of services FN sophisticated, yet easy to use and update. At the conclusion of the Study, HDR will provide the models to the City. Task Activities: V Develop a 10-year financial/rate model for each utility as part of the Study using Microsoft Excel V" Develop the models specifically for the City, utilizing their chart of accounts and specific facility information for each utility Expected City Staff Support: Review with HDR the requested features of the models Deliverables: A copy of the computer spreadsheet models for each utility used to develop the City's Study City of Ashiland i Wastewater and Storer,Crain Rate Study Scope ofSeuvic:es FN Project 'rime Schedule A comprehensive wastewater and storm drain rate study generally requires 4 to 6 months to complete. HDR is willing to collaborate with the City and! develop a final schedule for the development of the Study. Although the final timeline is not set, it is assumed that the City will implement the final proposed rates for each utility between January 1, 2026 and the start of fiscal year 2027 (July 1, 2026). In preViminary discussion with the City,the Study would start as soon as possible with a target of September 2025. Cost Proposal The estimated project fee was developed based on the previously discussed scope of services, the hourly billing rates for each individual, and level of effort by individual for each task of the Study. Rate Schetjt lle For the proposed Study, the following hourly billing rates were used to establish the proposed' fees for the Study. This hourly rate schedule will be in effect through December 2025. hourly rates are updated annually by HDR in January and HDR will work with the City to update the hourly rates for the staff working on the City"s project. Although the rates may be updated, the total) fee will not be adjusted. NOW Josiah Close Project Manager $228 Sara Anderson Financial Analyst $140 _......__ -.-._.. Shawn Koorn QA/QC $338 ........ _- ...... _ _. Paul Worrlein Principal $300 ...... V Juana Garcia Project Accountant $135 ......... ......... ...... Christine Senseman Project Coordinator $130 .---........... ......... ..._..._. _ f Jennifer Switzer Technical Editing $178 i The billing rates shown above cover payroll cost, employee benefits, and HDR overhead and profit. City mxs hl and|Wastewater wid Storm ommRate Study Scope mSmicey Expenses In-House Expenses Vehicle Mileage Current Federal Travel Regulation /FTB\ Nm markup on expenses. Other direct expenses (e.g., parking, mileage, airfare) will be billed at cost, Estiniate(I I)ro.ect Fee The estimated fees have been broken down 6x tasks identified in the Scope of Services and include the hourly billing rate by team member, as well as other direct costs (expenses) anticipated for the wastewater and' storm drain rate study. Provided on the following page is a summary of the estimated project hsmsforthescnpeVfserviuesdemz[mpedfortheOty.Thccno± for both utilities im combined bvtask, Data Collection 2,230 3 Initial Project Kick-Off Meeting 876 4 Revenue Requirement Analysis 18,504 5 Cost of Service Analysis 17,208 6 Rate Design Analysis 9,304 7' Written Report 9,676 8 Public Meetings/Presentations 4,428 9 Rate Models 2,428 Plus: EXPENSES $2,256 TOTAL LABOR AND EXPENSE COST ESTIMATE, $72,868 The above fees are based upon the scope of services detailed and discussed above. HDR is willing to negotiate a final fee for the Study based on a final scope of services. HDR is willing to enter into an agreement for$72,868 for the scope of services described above.Should the City request additional services under this contract, the services will be provided at the hourly billing rates City of Ashiland i Wastewater and Storm Drain Irate Study Scope of Selvkes FN noted above with prior written approval from the City's project manager or staff with approval authority. Portions of this fee proposal can be expanded or reduced in conformance with scope adjustments and as mutually agreed upon in writing by the City and HDR. Payment for Services HDR proposes that fees will be billed monthly on a time-and-material basis in accordance with the unit prices described in the above price proposal. While our services will be billed on a time and material basis, HDR has offered to enter into a "not to exceed"agreement for these services. I Y I