HomeMy WebLinkAbout18- Amendment 1 to PSA - AE2S Nexus, LLC - Water and Wastewater Cost of Service and Rate Design Studies �+co.
FIRSTAMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR
water and wastewater cost of service and rate study dated November 6, 2017(the "Agreement") is
made and entered into this 3 day of December, 2018,by and between the CITY OF BOZEMAN,
MONTANA,a self governing municipal corporation organized and existing under its Charter and
the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing
address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as "City," AE2S Nexus
LLC,hereinafter referred to as "Contractor."
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged,the parties hereto agree to amend the Agreement
as follows:
1. Extension of Term. Section 4 of the Agreement is extended and will terminate upon
completion of the work included in the Scope of Services of Exhibit A.
2. Agreement still valid.All remaining terms and provisions of the Agreement remain valid.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
First Amendment to Professional Services Agreement for water and wastewater cost of service and rate design
FY 2018—FY 2019
Page 1 of 2
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA AE2S NEXUS LLC
ByTT71 By
Andrea Surratt, Ci MaLger Print Name: GNrot E
Title: G joataAL KWA GLL
APPROVED AS TO FORM
By
Greg Sullivan,Bozeman City Attorney
First Amendment to Professional Services Agreement for water and wastewater cost of service and rate design
FY 2018—FY 2019
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CN
N E X U S
The Financial Link
November 13,2018
City of Bozeman
Attn: Kristin Donald,MBA
Finance Director
P.O.Box 1230, 121 N Rouse Avenue
Bozeman,MT 59771-1230
Re: Request for Amendment#1:Water and Wastewater Utility System Cost of Service&Rate
Design Study
Dear Kristin:
The purpose of this letter is to request an extension of the effective date and a scope and fee amendment under
the existing agreement between the City of Bozeman and AE2S Nexus (Nexus)for the Water and Wastewater
Utility System Cost of Service&Rate Design Study.Paragraph 4 of the Agreement, dated November 6,2017,
notes that the parties must agree in writing upon any additional costs associated with deviation from the described
services within the Agreement, and that additional charges must be agreed upon in writing. Based on our
discussions regarding changes to the original agreement, we respectfully request to amend the contract and
compensation as follows:
1. Amendment to Payment Amount.AE2S is requesting additional payment in an amount up to
$43,777 increasing the total contract maximum to$150,123. Key project components falling outside
of the original contract are outlined below. A summary table containing the additional scope items is
also included.
a. Revised Approach to Commission Engagement and Project Completion:At the direction
of City staff,the Commission meeting at which it was originally intended that final results
would be presented was utilized instead to initiate rate-setting policy discussion. This
resulted in a change in direction for the project,which was nearing completion,and halted
finalization of the Water and Wastewater study reports that were in the process of being
drafted.
b. Rate Model Updates:Based on original study results,City staff determined that the existing
capital plans included to the rate models should undergo detailed review and rework. In
addition,staffing concerns have been raised and are under review. The rate models,rate
projections,and reserve funding recommendations will be updated to reflect the newly
developed capital and staffing plans as they become available and a coordination meeting
with City staff will be conducted to review revised modeling results.
c. Commission Workshop:As a follow-up to the policy presentation in August,AE2S will
prepare for and attend an additional Commission meeting for further discussion based on
updated capital values and input from the previous Commission meeting. Prior to this
workshop and following updates to the rate models,AE2S Nexus will hold a teleconference
with City staff prior to review the updated results and discuss content for presentation and
discussion at the Commission Workshop. AE2S Nexus will then prepare a summary
memorandum for the Commission for review prior to the workshop.
www.AE2SNexus.com
4050 Garden View Drive,Suite 200 Granrl Forks,ND 58201 Phone: 701-746-8087 Fax: 701-746-0370
i
Ms.Kristin Donald
City of Bozeman
Re: Request for Amendment#1: Water and Wastewater Utility System Cost of Service&Rate
Design Study
November 13,2018
Page 2 of 2
d. Delivery of Final Results: Following completion of the Commission Workshop,revisions
will be made to the analyses based on Commission input and the final reports will be revised
to reflect updated results. Recommendations will be updated to reflect policy discussions
with the Commission. Following review of the reports by City staff,final reports will be
provided. The finalized models will also be provided to the City and AE2S Nexus staff will
provide training regarding use of the models via teleconference.
The below table outlines a summary of all tasks,labor,and expenses estimated for the completion of the
additional scope of services requested.
Hours Labor Expense Total
Revised Approach to Commission Engagement/Project 41 $7,623 $7,623
Completion _
Industrial Rate Clarifications 4 $770 $770
Rate Model Updates based on Revised Capital and Staffing
Water 20 $3,630 $3,630
Wastewater 20 $3,630 $3,546
Rate Model Updates Review Meeting w/City Staff 6 $1,074 $1,074
Commission Workshop
Prepare Summary Information for Commission Review 18 $3,231 $3,231
Commission Workshop Preparation 12 $2,193 $2,193
On-Site Commission Workshop(Includes Travel) 16 $3,392 $1,250 $4,642
Revisions to Policy and Analysis based on Commission 21 $3,814
Feedback $3,814
Delivery of Final Results and Recommendations
Final Report Preparation and Revisions 38 $6,304 $500 $6,804
Final Results Presentation to Commission 26 $5,116 $1,250 $6,366
(Includes Prep and Travel)
Total Contract Amendment Request $43,777
In consideration of the above outlined changes to the scope and schedule of the work, we are respectfully
requesting an amendment to the Agreement. AE2S Nexus greatly appreciates the continued opportunity to
provide professional service to the City of Bozeman. If you have any questions or require any additional
information regarding this amendment request,please do not hesitate to contact me at(701)746-8087.
Sincerely,
AE2S Nexus
awn Gaddie,PE
General Manager