HomeMy WebLinkAboutFinancial Consulting Solutions Group - Fees/Rates CONTRACT EXTENSION AGREEMENT
CITY OF CENTRAL POINT,OREGON
This CONTRACT EXTENSION AGREEMENT is entered into by and between the City
of Central Point, a municipal corporation of the State of Oregon (hereinafter, the"City"), and
FCS GROUP (hereinafter, the "Contractor").
WHEREAS, the City and the Contractor entered into a Contract Agreement on March 3,
2020, for the completion of an Update of Street, Park& Recreation, Stormwater, and Water Fees
/Rates ("Agreement").
WHEREAS, the City and the Contractor hereby agree to extend the term of the
Agreement in accordance with the terms of the Agreement as well as the terms provided herein.
Section 2 of the Agreement("Time for Completion") is amended such that"Completion of
Project," which was originally"on or before August 31, 2020," is now"on or before June 30,
2022."
In all other respects,the Contract shall remain in full force and effect.
By: e_L• (- _c_n By:
'24-- im>/...„2.
Chris Clayton John Ghilarducci
City Manager, City of Central Point President, FCS GROUP
Date: e . 4k-e. ..acp Date: 12/9/2021
February 25,2020 Page 1
CONTRACT AGREEMENT
BETWEEN
FINANCIAL CONSULTING CITY OF CENTRAL POINT
SOLUTIONS AND 140 S.3rd Street
GROUP,INC. Central Point,OR 97502
Redmond Town Center
7525– 166th Ave.NE,Suite D-215
Redmond,Washington 98052
PROJECT: Update of Street,Park&Recreation,Stormwater,and Water Fees/Rates
THIS AGREEMENT combines all understandings between the Patties regarding professional
services for the Project named above and supersedes all prior proposals,quotations,solicitations,
negotiations,representations,agreements or understandings,whether written or oral.
The performance of the professional services herein described and authorized by CITY OF
CENTRAL POINT,as well as payment for such services,shall be in accordance with the terms and
conditions presented in this Agreement and the following Sections and Exhibits which are attached and
incorporated by reference which,taken together,shall constitute the whole Agreement.
Section I - Relationship of the Parties
Section II - Contract Provisions
Exhibit A - Scope of Work and Task Plan
Exhibit B - Fee Schedule
IN WIT_ SS WHEREOFt arties hereto have hereunto set their hands and seals this
cP day of t 7 ,20
APPROVED: APPROVED:
FINANCIAL CONSULTING CITY OF CENTRAL POINT
SOLUTIONS GROUP,INC.
C'C4QS
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J
J n Gkilarducci
President/Principal
Date: 31 3 2..0 Date: 0/0ea
1
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February 25, 2020 Page 2
SECTION I: RELATIONSHIP OF THE PARTIES
The CITY OF CENTRAL POINT ("Client"), desires to perform an update of its Street, Park&
Recreation, Stormwater, and Water Fees/Rates ("Project"). In furtherance of the Project, the Client
hereby contracts with Financial Consulting Solutions Group, Inc. ("FCS GROUP")to perform the
professional services described in Exhibit A of this Agreement. All services shall be performed under
the joint supervision of the Client's Representative, Matt Samitore, or a designee or designees identified
in writing to FCS GROUP by the Client's Representative.
This Agreement shall inure to the benefit of and be binding upon successors, assigns, and legal
representatives of each of the Parties hereto. Any assignment or transfer of an interest in this
Agreement by either Party without the written consent of the other shall be void.
SECTION II: CONTRACT PROVISIONS
1. Scone of Work: FCS GROUP shall perform the service for the Client which as defined in Exhibit A
of this Agreement.
2. Time for Completion: The Scope of Work for the conduct of the study as set forth above is
anticipated to be completed by FCS GROUP within a time frame approximating that shown by the
following schedule:
Notice to Proceed: On or before March 31, 2020
Completion of Analysis: On or before June 30, 2020
Completion of Project: On or before August 31, 2020.
FCS GROUP agrees to perform the work described in the Scope of Work according to the contract
schedule. Any delays shall be agreed upon by FCS GROUP and Client prior to the due date. Changes
in the schedule caused by Client delays may require additional compensation and a change order.
If FCS GROUP is delayed in the performance of services by conditions which are beyond their control,
or by a change in the scope of work, the schedule showing time of performance may be revised. Any
revision thereto shall be submitted in writing to the Client for review and approval by the Client
Representative. If FCS GROUP's services are temporarily suspended by the Client in the interest of the
Project and with written notice to FCS GROUP, and the suspensions last longer than 90 consecutive
days, FCS GROUP shall be compensated for any additional labor and direct expenses incurred due to
the interruption and resumption of services.
3. Payment: FCS GROUP will be paid by the Client on a time and materials basis as outlined below
and in accordance with the standard billing rates attached hereto as Exhibit B. Direct expenses will be
charged as identified in Exhibit B. FCS GROUP agrees to perform the services as set forth in Exhibit A
at a cost not to exceed $70,620. It is understood that FCS GROUP will not exceed this amount without
the Client's prior written authorization.
Payment to FCS GROUP for services set forth in Exhibit A shall be: an amount equal to FCS GROUP's
standard billing rates as set forth in Exhibit B multiplied by the actual hours worked. Should any
unforeseen project delays, not caused by FCS GROUP, and/or any requested amendments to the original
scope of work, cause this contract to extend more than 90 days past the original contracted schedule
date, any work and/or amendments to the work shall be billed at the standard billing rates in effect for
the period of time the work is being performed. If said change in billing rates will cause the project to
exceed the amount stated in the preceding paragraph, a change order will be prepared and signed by
both parties.
FCS GROUP will invoice Client monthly and payment shall be made within 30 days of receipt of
invoice.
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February 25, 2020 Page 3
4. Supplemental Agreements: Supplemental Agreements may be entered into upon mutual written
agreement that would increase or decrease the scope and associated costs and payment.
5. Work to be Accomplished: All work accomplished will be performed under the direction of the
Client Representative or his/her Designee.
6. Termination: This contract may be terminated by the Client by giving FCS GROUP written notice
of such termination no fewer than fifteen (15) days in advance of the effective date of said termination.
FCS GROUP shall be entitled to terminate this agreement only in the case of a material breach by the
Client, and upon failure of the Client to remedy said breach within fifteen(15)days of said notice. In
the event that the contract is terminated before completion, FCS GROUP shall be paid for the services to
date on the basis set forth in Paragraph 3, plus 10%of the total compensation earned to time of
termination to compensate for FCS GROUP's rescheduling adjustments, reassignment of personnel, and
related costs incurred due to termination. The Client shall notify FCS of termination or abandonment in
writing.
7. Indemnity: FCS GROUP shall comply with all Federal Government, State and local laws and
ordinances applicable to the work to be done under this Agreement.
FCS GROUP hereby agrees to hold the Client harmless from and shall process and defend at its own
expense, specific claims, demands or suits at law or equity, arising from FCS GROUP's negligent
performance of the provisions of this Agreement; provided that if the Client and FCS GROUP are
concurrently negligent, FCS GROUP shall be required to indemnify and defend only in proportion to
negligence of FCS GROUP. These indemnity provisions shall not require FCS GROUP to defend or
indemnify the Client against any action based solely on the alleged negligence of the Client.
8. All Work Produced is Joint Property of FCS GROUP and the Client: The materials, computer
programs, reports, calculations, analyses, etc., generated by FCS GROUP under this contract including
the final report shall be the joint property of the Client and FCS GROUP. FCS GROUP may retain
copies thereof for work paper documentation and their own use unless specifically restricted in writing
by the Client as to use.
Computer models use generally available software, such as Microsoft Excel (TM), and FCS GROUP
does not intend or imply any warranty of those programs.
9. Financial Forecasts: Neither FCS GROUP's name nor the report and its financial projections may be
referred to or included in any prospectus or as a part of any offering or representation made in •
connection with the sale of securities or participation interests to the public, whether through a public or
private offering.
The information used in developing the forecast assumptions will be derived from published information
and other sources FCS GROUP considers appropriate. However, FCS GROUP cannot assume
responsibility for the accuracy of such material. Moreover, forecasts are subject to many uncertainties
as to the future; therefore, FCS GROUP cannot represent that the projected financial statements will be
representative of the results that actually occur. FCS GROUP will endeavor to include appropriate
comments drawing the readers' attention to these matters.
10. Integrated Agreement: This agreement together with attachments or addenda, represents the entire
and integrated agreement between the Client and FCS GROUP supersedes all prior negotiations,
representations, or agreements written or oral. This agreement may be amended by written instrument
signed by both the Client and FCS GROUP.
11. Independent Contractor: The parties intend that an independent Contractor/Client relationship
will be created by this agreement. No agent, employee, or representative of FCS GROUP shall be
deemed to be an agent, employee, or representative of the Client for any purpose. FCS GROUP shall be
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February 25, 2020 Page 4
solely responsible for all acts of its agents, employees, representatives, and subcontractors during the
performance of this contract.
12. Equal Opportunity: FCS GROUP is committed to the principles of providing equal employment
opportunities for all employees. The performance and diversity of our employees will help us meet the
challenges of the present and the future in serving our clients. This policy statement is a reaffirmation of
our long-standing commitment to provide equal opportunity on the basis of individual merit and
personal qualifications to employees and applicants for employment without regard to race, color,
religious creed, sex, sexual orientation or preference, gender identity, genetic characteristics or
information of employee or family, age, national origin, ancestry, marital status, citizenship, the
presence of sensory, mental, or physical disability, pregnancy/childbirth or related condition, medical
condition, membership in the military service, veteran's status, political ideology or any other basis
protected by applicable federal, state, or local laws.
13. Notices: Notices to the Client shall be sent to the following address:
CITY OF CENTRAL POINT
Attention: Matt Samitore
140 S. 3rd Street
Central Point, OR 97502
Notices to FCS GROUP shall be sent to the following address:
Financial Consulting Solutions Group, Inc.
Attention: John Ghilarducci, President
Redmond Town Center
7525 — 166th Ave.NE, Suite D-215
Redmond, Washington 98052
) I . I GROUP www.fcsgroup.com
February 25, 2020 Page 5
EXHIBIT A: SCOPE OF WORK AND TASK PLAN
The City of Central Point wishes to update its(1)street utility fee,(2)park&recreation fee,(3)stormwater
utility fee, and (4) water rates to meet current needs for each service. The following work plan would
apply.
Task One: Data Collection and Review
We will prepare an initial data request identifying specific pieces of data to be collected from the City.
We will review data provided by the City and make formal requests for any additional items or
explanations as necessary. Inconsistencies and problems in data collected will be identified and resolved
to allow accurate analysis. We will participate in a project kickoff meeting by video or teleconference.
Data needs for each service will likely include:
• Current and budgeted maintenance & operations, engineering, and other costs;
• Planned capital projects.
Note: We have the FY 2019-2021 Biennial Budget from the City website.
Task Two: Utility Fee Structure Review
Task Two is the examination of fee structure changes / enhancements that will align each of the fee
structures with City objectives. Alternatives will be defined and analyzed against evaluation criteria such
as revenue sufficiency, equity, administrative feasibility, and legal defensibility. Documentation will be
provided in the form of a policy issue paper on fee structure options for each service. It is assumed that
this task will not include a review of the water rate structure.
2.1 Write and provide issue paper on fee structure options.
Task Three: Fee Analysis
Task Three is the analytical update of each of the street utility, park & recreation, stormwater, and water
utility fees/rates and the modeling of fee structure alternatives.
3.1 Using newly developed or adapted spreadsheet models,project revenue requirements for each service
for up to twenty years. If applicable, each of the models will include a capital financing analysis to
project borrowing needs and associated cash flows and fund balances. Each of the models will
accommodate other revenue sources, and increases to existing revenue sources, in order to complete
a balanced financial plan for each service.
3.2 Work with City staff to compile customer data needed to model the fee structure alternatives
recommended in Task Two.
3.3 Model up to three fee structure alternatives for each service, designed to recover the relevant revenue
requirement and meet City objectives for each fee structure. Provide sample bills to illustrate impacts
of fee structure changes on representative individual customers. Recommended water rates will
include only an across-the-board option.
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February 25, 2020 Page 6
Task Four: Documentation and Presentations
Task Four includes the meetings and process needed to meet the City's objectives, as well as the report.
It is assumed that up to three meetings will be needed with City staff (two on-site and one via video
conference), as well as one meeting with the Council. This task also includes ongoing project
management. Additional requested meetings can be accommodated on a time and materials basis.
4.1 Write a draft report summarizing findings and finalize the report after input from City staff and
Council.
4.2 Develop materials and participate in up to three meetings with City staff(two on-site and one via
video conference)to discuss key policy issues and present and discuss technical findings.
4.3 Develop materials and participate in a meeting with the City Council to present and discuss findings.
4.4 Project management (to include ongoing communications with City staff, and internally, in the
execution of the project).
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February 25, 2020 Page 7
EXHIBIT B: FINANCIAL CONSULTING SOLUTIONS GROUP. INC. FEE SCHEDULE
LABOR
Name Title Billine Rate
John Ghilarducci Principal $270
Doug Gabbard Project Manager $185
Consultant $145
Support $90
DIRECT EXPENSES
Direct Expenses will not be charged for ordinary project-related expenses. Travel expenses will be
charged at cost. For any client-requested extraordinary expenses, specific terms will be established
prior to expenditure and billing.
•:;> l H. GROUP www.fcsgroup.com