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Willdan Financial Services-CN 2020-01-28 STATE OF TEXAS § § AGREEMENT FOR PROFESSIONAL SERVICES COUNTY OF DALLAS § This agreement ("Agreement") is made by and between the City of Coppell, Texas ("City") and Willdan Financial Services (the"Professional") (each a"Party" and collectively the "Parties"), acting by and through their authorized representatives. Recitals: WHEREAS,City desires to engage the services of Professional as an independent contractor and not as an employee in accordance with the terms and conditions set forth in this Agreement; and WHEREAS, Professional desires to render professional services to provide a Water and Sewer Cost of Service Rate Study for the City (the "Project") in accordance with the terms and conditions set forth in this Agreement; NOW THEREFORE, in exchange for the mutual covenants set forth herein and other valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the parties agree as follows: Article I Term 1.1 This term of this Agreement shall begin on the last date of execution hereof (the "Effective Date") and continue until completion of the services provided herein. 1.2 Either party may terminate this Agreement by giving thirty (30) days prior written notice to the other party. In the event of such termination, Professional shall be entitled to compensation for any services completed to the reasonable satisfaction of the City in accordance with this Agreement prior to such termination. Article II Scope of Services 2.1 Professional shall provide the services specifically set forth in Exhibit"A." 2.2 The Parties acknowledge and agree that any and all opinions provided by Professional represent the best judgment of Professional. 2.3 Preliminary design documents, specifications, estimates, and other documents, including those in electronic form, prepared by Professional and its consultants, agents, representatives, and/or employees in connection with the Project are intended for the use and benefit of the City. Professional and its consultants, agents, representatives, and/or employees shall be deemed the authors of their respective part of said Project documents. Notwithstanding, City shall own, have, keep and retain all rights, title and interest in and to all Project documents, including all CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 1 ownership,common law, statutory,and other reserved rights, including copyrights, in and to all such Project documents, whether in draft form or final form, which are produced at its request and in furtherance of this Agreement or the Project. City shall have full authority to authorize the Contractor, Subcontractors, Sub-subcontractors, City consultants, and material or equipment suppliers to reproduce applicable portions of the Project documents to and for use in their execution of the work or for any other purpose. All materials and reports prepared by Professional in connection with this Agreement are"works for hire" and shall be the property of the City. City shall have the right to publish, disclose,distribute and otherwise use such materials and reports. Professional shall upon completion of the services, or earlier termination, provide the City with reproductions of all materials reports,and exhibits prepared by Professional pursuant to this Agreement,and in electronic format if requested by the City. Article III Schedule of Work Professional agrees to commence services upon written direction from City and to complete the required services in accordance with the schedule set forth in Exhibit"A"(the"Work Schedule"). Article IV Compensation and Method of Payment 4.1 City shall compensate Professional as set forth in Exhibit"A"in a total amount not to exceed Thirty-Nine Thousand Five Hundred Dollars($39,500.00). 4.2 Unless otherwise approved by the City in advance, Professional shall be responsible for all expenses related to the services provided pursuant to this Agreement including,but not limited to, travel, copying and facsimile charges, reproduction charges, and telephone, internet and e-mail charges. Article V Devotion of Time; Personnel; and Equipment 5.1 Professional shall devote such time as reasonably necessary for the satisfactory performance of the work under this Agreement. Should the City require additional services not included under this Agreement,Professional shall make reasonable efforts to provide such additional services at mutually agreed charges or rates,and within the time schedule prescribed by the City,and without decreasing the effectiveness of the performance of services required under this Agreement. 5.2 To the extent reasonably necessary for Professional to perform the services under this Agreement,Professional shall be authorized to engage the services of any agents,assistants,persons, or corporations that Professional may deem proper to aid or assist in the performance of the services under this Agreement. The cost of such personnel and assistance shall be borne exclusively by Professional. CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 2 5.3 Professional shall furnish the facilities, equipment, telephones, facsimile machines, email facilities,and personnel necessary to perform the services required under this Agreement unless otherwise provided herein. Article VI Relationship of Parties It is understood and agreed by and between the parties that in satisfying the conditions of this Agreement,Professional is acting independently,and that City assumes no responsibility or liabilities to any third party in connection with these actions. All services to be performed by Professional pursuant to this Agreement shall be in the capacity of an independent contractor,and not as an agent or employee of the City. Professional shall supervise the performance of its services and shall be entitled to control the manner and means by which its services are to be performed, subject to the terms of this Agreement. As such,City shall not: train Professional,require Professional to complete regular oral or written reports, require that Professional devote its full-time services to the City, or dictate Professional's sequence of work or location at which Professional performs its work. Article VII Insurance (a) Professional shall during the term hereof maintain in full force and effect the following insurance: (i)a comprehensive general liability policy of insurance for bodily injury, death and property damage insuring against all claims, demands or actions relating to Professional's performance of services pursuant to this Agreement with a minimum combined single limit of not less than$1,000,000.00 per occurrence for injury to persons (including death), and for property damage; (ii) policy of automobile liability insurance covering any vehicles owned and/or operated by Professional, its officers, agents, and employees, and used in the performance of this Agreement with policy limits of not less than $500,000.00 combined single limit and aggregate for bodily injury and property damage; (iii) statutory Worker's Compensation Insurance at the statutory limits and Employers Liability covering all of Professional's employees involved in the provision of services under this Agreement with policy limit of not less than $500,000.00; and (iv) Professional Liability covering negligent acts, errors and omissions in the performance of professional services with policy limit of not less than $2,000,000.00 per claim and $2,000,000.00 in the aggregate. (b) All policies of insurance shall be endorsed and contain the following provisions: (1) name the City, its officers, and employees as additional insureds as to all applicable coverage with the exception of Workers Compensation Insurance and Professional Liability; and (2) provide for at least thirty (30) days prior written notice to the City for cancellation of the insurance; (3) provide for a waiver of subrogation against the City for injuries, including death,property damage, or any other loss to the extent the same is covered by the proceeds of insurance, except for Professional Liability Insurance.Professional shall provide written notice to the City of any material change of or to the insurance required herein. CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 3 (c) All insurance companies providing the required insurance shall be authorized to transact business in Texas and rated at least"A"by AM Best or other equivalent rating service. (d) A certificate of insurance and copies of the policy endorsements evidencing the required insurance shall be submitted prior to commencement of services and upon written request of the City. Article VIII Miscellaneous 8.1 Entire Agreement. This Agreement constitutes the sole and only agreement between the parties and supersedes any prior understandings, written or oral agreements between the parties with respect to this subject matter. 8.2 Authorization. Each party represents that it has full capacity and authority to grant all rights and assume all obligations granted and assumed under this Agreement. 8.3 Assignment. Professional may not assign this Agreement in whole or in part without the prior written consent of City. In the event of an assignment by Professional to which the City has consented, the assignee shall agree in writing with the City to personally assume, perform, and be bound by all the covenants, and obligations contained in this Agreement. 8.4 Successors and Assigns. Subject to the provisions regarding assignment, this Agreement shall be binding on and inure to the benefit of the parties to it and their respective heirs, executors, administrators, legal representatives, successors and assigns. 8.5 Governing Law. The laws of the State of Texas shall govern this Agreement; and venue for any action concerning this Agreement shall be in the State District Court of Dallas County, Texas. The parties agree to submit to the personal and subject matter jurisdiction of said court. 8.6 Amendments. This Agreement may be amended by the mutual written agreement of the parties. 8.7 Severability. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,illegality or unenforceability shall not effect any other provisions,and the Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in it. 8.8 Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the termination of this Agreement shall survive termination. 8.9 Recitals. The recitals to this Agreement are incorporated herein. CITY OF COPPELV WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 4 8.10 Notice. Any notice required or permitted to be delivered hereunder may be sent by first class mail,overnight courier or by confirmed telefax or facsimile to the address specified below, or to such other party or address as either party may designate in writing, and shall be deemed received three(3)days after delivery set forth herein: If intended for City: With Copy to: Mike Land Robert E. Hager City Manager Nichols, Jackson, Dillard, Hager& Smith,L.L.P. City of Coppell,Texas 1800 Ross Tower 255 E.Parkway Blvd. 500 North Akard Coppell, Texas 75019 Dallas,Texas 75201 If intended for Professional: Dan V. Jackson Vice President Willdan Financial Services 5500 Democracy Drive, Suite 130 Plano,Texas 75024 8.11 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of any number of copies hereof each signed by less than all, but together signed by all of the parties hereto. 8.12 Exhibits. The exhibits attached hereto are incorporated herein and made a part hereof for all purposes. 8.13 Indemnification. CITY SHALL NOT BE LIABLE FOR ANY LOSS,DAMAGE, OR INJURY OF ANY KIND OR CHARACTER TO ANY PERSON OR PROPERTY ARISING FROM THE SERVICES OF PROFESSIONAL PURSUANT TO THIS AGREEMENT. PROFESSIONAL HEREBY WAIVES ALL CLAIMS AGAINST CITY, ITS OFFICERS, AGENTS AND EMPLOYEES (COLLECTIVELY REFERRED TO IN THIS SECTION AS"CITY")FOR DAMAGE TO ANY PROPERTY OR INJURY TO,OR DEATH OF, ANY PERSON ARISING AT ANY TIME AND FROM ANY CAUSE OTHER THAN THE NEGLIGENCE OR WILLFUL MISCONDUCT OF CITY.PROFESSIONAL AGREES TO INDEMNIFY AND SAVE HARMLESS CITY FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, ATTORNEYS'FEES AND COSTS OF INVESTIGATION)AND ACTIONS BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY TO THE EXTENT CAUSED BY PROFESSIONAL'S NEGLIGENT PERFORMANCE OF SERVICES UNDER THIS AGREEMENT OR BY REASON OF ANY ACT OR OMISSION ON THE PART OF PROFESSIONAL, ITS OFFICERS, DIRECTORS, SERVANTS, AGENTS,EMPLOYEES, REPRESENTATIVES, CONTRACTORS, SUBCONTRACTORS, CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 5 LICENSEES, SUCCESSORS OR PERMITTED ASSIGNS (EXCEPT WHEN SUCH LIABILITY,CLAIMS,SUITS,COSTS,INJURIES,DEATHS OR DAMAGES ARISE FROM OR ARE ATTRIBUTED TO SOLE NEGLIGENCE OF THE CITY). IF ANY ACTION OR PROCEEDING SHALL BE BROUGHT BY OR AGAINST CITY IN CONNECTION WITH ANY SUCH LIABILITY OR CLAIM,PROFESSIONAL,ON NOTICE FROM CITY,SHALL' DEFEND SUCH ACTION OR PROCEEDINGS AT PROFESSIONAL'S EXPENSE,BY OR THROUGH ATTORNEYS REASONABLY SATISFACTORY TO CITY. PROFESSIONAL'S OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY PROFESSIONAL UNDER THIS AGREEMENT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 8.14 Audits and Records. Professional agrees that during the term hereof the City and its representatives may, during normal business hours and as often as deemed necessary, inspect, audit, examine and reproduce any and all of Professional's records relating to the services provided pursuant to this Agreement for a period of one year following the date of completion of services as determined by the City or date of termination if sooner. 8.15 Conflicts of Interests. Professional represents that no official or employee of the City has any direct or indirect pecuniary interest in this Agreement. [Signature page to follow! CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 6 EXECUTED this day of , 20 . City of Coppell,Tex By: Mike Land,City Manager if Approved as to I By: I/_�� 4, , L Robert E. Hager, ity J orney (TM-113437) EXECUTED this day of , 2020. Willdan Financial Services By: VOGSel li gliet,-.---------- Da,h 1 j '-joic'<so✓v, Managing Director CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT-PAGE 7 EXHIBIT "A" SCOPE OF SERVICES See attached letter agreements from Willdan Financial Services to provide Water and Wastewater Rate Study and to prepare a cost allocation plan. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT 1IVW I LLDAN • January 15 2020 Ms. Kimberly Tiehen Assistant Director of Finance City of Coppell 225 Parkway Blvd. Coppell TX 75019 Re: Letter Agreement to Provide Water and Wastewater Rate Study Dear Ms. Tiehen: Willdan Financial Services ("Willdan") is pleased to present the following scope of services and budget to assist the City of Coppell in providing a new water and wastewater rate study and long-term financial plan. We are an economic and financial consulting firm, with offices in Plano, Texas and throughout the United States. Our principal clients are national, state and local governments. Our firm contains professionals with decades of experience in water and wastewater utility operations and economic/financial management. Scope of Services We want to ensure that our scope of services is responsive to the City's needs. We will work with the City to tailor our proposed scope based on input prior to approval of this letter agreement, and as needed during the course of the project. Task 1: Rate Comparison Description: We will provide a detailed analysis and comparison of the City's current and proposed rates to the state average as well as to other surrounding communities. Task 2: Acquire and Analyze Data for Analysis Description: The project team will work with City staff to acquire the data required for the study. This will include customer and volume data, budgets, operating expenses. capital improvement plans and debt service schedules. We will thoroughly analyze all acquired data to ensure that it meets the requirements for our study and will follow up with City staff as necessary. We will examine the following issues: • Should the City adopt a current or tiered rate for water service? • What would be the impact of adopted a wastewater winter average method for charging for service? • Should we adjust the volume blocks because of the increased ability of customers to monitor their own usage? • What would be the impact of changes to the City's cost allocations from the utility fund to the general fund? Engineering and Planning I Energy Efficiency and Sustainabillty I Financial and Economic Consuiiing I National Preparedness and Interoperability 972.378.6588 I Fax:972.378.6988 i 5500 Democracy Drive,Suite 130,Plano,Texas 75024 I www.willdan.com EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kim Tiehen, City of Coppell Letter Agreement to Provide Water and Wastewater Rate Study January 15 2020 Page 2 Task 3: Update Rate Model Description: The project team will use acquired current budget, volume and CIP data to update its previously-prepared ten-year water and wastewater cost of service forecast model. The model will identify current and forecast operating expenses, capital outlays and debt service for the period FY 2020 —FY 2029. The model adheres to AWWA ratemaking standards to ensure that the cost of service for each customer class is just, reasonable and accurate Task 4: Prepare Alternative Rate Plans and PowerPoint Summary Description: Based on the findings and results from prior tasks, the project team will prepare alternative water proposed rate structures for the City Council to consider. Each alternative will enable the City to recover sufficient revenues to fund operating and capital costs. The project team will prepare additional scenarios should the staff or council so choose in determining which is the most just and reasonable. The City will summarize its findings into a PowerPoint presentation and a written rate study report. Task 5: Meetings Description: The project team will conduct the following meetings: a) One meeting with City staff to review preliminary results b) One workshop with the City Council to discuss our findings and recommendations c) One final Council meeting/public hearing at which the preferred rate plan is to be decided upon by the Council. Budget Witldan will perform the tasks described in the Scope of Services section for not to exceed professional fees and expenses of$25,000. Note: • Telephone conference calls are not considered meetings and are not limited by our proposal. • Additional services, including attending additional meetings, may be authorized by the City and will require an additional fee. • We will bill the City based on percent of the task completion. Additional Services Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. Our current hourly rates are: EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kin Tiehen,City of Coppet! Letter Agreement to Provide Water and Wastewater Rate Study January 15 2020 Page 3 Willdan Financial Services Group Manager $250 Managing Principal $240 Principal Consultant $210 Senior Project Manager $185 Project Manager $165 Senior Project Analyst $135 Senior Analyst $125 Analyst $110 Analyst Assistant $100 Authorization If the terms of this engagement are acceptable, please sign where indicated and email this letter back to myself and to our contracts supervisor: Ms. Joanie Reynolds Willdan Financial Services 27368 Via Industria, Suite 200 Temecula, California 92590 Ph. (800)755-6864; fax(951)587-3510 E-mail:jrevnolds chi willdan.com We appreciate this opportunity to serve the City of Coppell. If you have any questions regarding the proposed services, please contact me directly at(972)378-6588 or via email at djackson willdan.com. Sincerely, Willdan Financial Services cl , VL January 15 2020 Dan V. Jackson,Vice President Date City of Co, pelt L Signature Date Print Name COMPREHENSIVE. INNOVATIVE. TRUSTED. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT ATTACHMENT 1 TO LETTER AGREEMENT TERMS AND CONDITIONS The Letter Agreement between the City of Coppell ("Client")and Willdan Financial Services(''WFS") is subject to these Terms and Conditions(collectively,this"Agreement"). 1. Additional Services. Additional services shall be performed by WFS only upon Client's request evidenced by a written addendum executed by both parties. 2. Compensation. WFS shall submit monthly statements for services. Payments shall be due and payable within 30 days of invoice and if not timely paid shall bear interest at the rate of 1.5% per month. 3. Termination. Either party may terminate this Agreement at any time upon 30 days' written notice. In the event of early termination,WFS shall be paid for services performed prior to the effective date of termination. 4. Data Provided by Client. WFS shall rely upon data provided by Client without independent verification of accuracy. WFS shall not be responsible for any errors resulting from its use of inaccurate data provided by Client. 5. Indemnification. Each Party shall indemnify the other from claims resulting from their respective negligence or other wrongful conduct or the negligence or other wrongful conduct of their respective officers, agents or employees. 6. Insurance. WFS shall maintain the following insurance: a. Workers'Compensation and Employer's Liability Insurance as prescribed by applicable law. b. Commercial General Liability Insurance, with limits not be less than $1,000,000 per occurrence and general aggregate. c. Commercial Automobile Liability with limits not less than$1,000,000 per occurrence. d. Professional Liability with limits not be less than $1,000,000 per claim and annual aggregate. e. All policies except Professional Liability and Workers Compensation shall include Client as an additional insured and be primary with respect to any insurance carried by WFS. All policies shall include a waiver of subrogation in favor of Client. f. WFS shall provide Client with certificates of insurance evidencing compliance with the above insurance requirements prior to commencing it services. 7. Miscellaneous. a. Titles used in this Agreement are for general reference and are not a part of the Agreement. b. This Agreement shall be interpreted as though prepared by both parties. c. Any provision of this Agreement held to violate any law shall be deemed void, and all remaining provisions shall continue in full force and effect. d. This Agreement shall be interpreted under the laws of the State of California. e. This Agreement comprises a final and complete repository of the understandings between the parties and supersedes all prior or contemporary communications, representations or agreements, whether oral or written, relating to the subject matter of this Agreement. f. Any notices given pursuant to this agreement shall be effective on the third business day after posting by first class mail, postage prepaid, to the address appearing immediately after the signatures below. g. WFS shall not be liable for damages resulting from the actions or inactions of governmental agencies including, but not limited to, permit processing or environmental impact reports. h. WFS's waiver of any term, condition,or covenant, or breach of any term, condition, or covenant, shall not constitute the waiver of any subsequent breach of any other term, condition or covenant. i. WFS shall not responsible for the performance of services by third parties not retained by WFS. Willdan Financial Services Page A-1 City of Copper EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT WW I LLDAN January 15 2020 Ms.Kimberly Tiehen Assistant Director of Finance City of Coppell 255 Parkway Blvd. Coppelt Texas 75019 Re: Letter Proposal to Prepare a Cost Allocation Plan for the City of Coppell Dear Ms. Tiehen: Thank you for allowing Willdan Financial Services ("Willdan") the opportunity to present this engagement letter to prepare a Cost Allocation Plan for the City of Coppell("City").The development of a fair and reasonable Cost Allocation Plan (CAP) helps ensure recovery of General Fund expenditures, through appropriate allocation of expenses to the water and wastewater utility and other city departments. Our objective is to provide useful,detailed information to City Council and staff, so that they have the information necessary to make important decisions. Our experience ensures that we can meet this objective. Willdan has worked with municipal clients to prepare and update Cost Allocation Plans and administrative allocations for nearly two decades. This direct experience provides us with firsthand understanding of city operations and is uniquely useful in helping us understand relationships between City departments,and how support services are utilized. Further,we would note the following: Collaborative Approach and User-friendly Models and Reports—Willdan prides itself on working closely with City staff to develop an approach that is targeted toward your specific objectives and your reality, and then working with staff to gather first-hand information regarding the City's overhead services and functions, and understand your accounting data. We create user-friendly Excel-based models and conduct our analysis and develop the model collaboratively with City staff. Rather than using an inflexible proprietary software program,we construct our models from the ground up, mirroring the City's budget format wherever possible. As a result, the information contained in our models is easy for City staff to interpret, and the familiar software ensures ease of navigation. This also allows for easy on-the-fly adjustments and updates, inclusion of updated budgets, or changes in organizational structure. As the model is being designed and constructed we will work with City staff to determine the best and most effective features to include. After the project is complete, we will provide reports that clearly and graphically illustrate bases for the allocation of costs. Willdan is pleased to submit the following Work Plan and Proposed Fee to assist the City of Coppell ("City"). 4 Engineering and Planning I Energy Efficiency and Sustainabl9ty I Financial and Economic Consulting I National Preparedness and Interoperability 972.378.6588 I Fax:972.378.6968 15500 Democracy Drive,Suite 130,Plano,Texas 75024 I www.wllidan.com EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kimberly Tiehen City of Coppoll Letter Proposal to Prepare a Cost Allocation Plan Page 2 January 15 2020 Work Plan Our proposed work plan, described in detail by task, is provided below. We explain how each task will be accomplished, and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity, and is responsive to the City's needs and specific local circumstances. We will work in concert with the City to adjust the scope as needed during the course of the study. Cost Allocation Plan This proposed scope of services addresses the completion of the Cost Allocation Plan(CAP). Task 1: Initial Document Request Objective: Initial due diligence. Description: Prior to the kick-off meeting or conference call, relevant documentation will be obtained and reviewed in order to enhance our understanding of the City's current cost allocation plan or methodology, and internal structure of the agency. A written request for specific data will be sent to the City. The data provided in this task will provide the building blocks for later model development. Our request may include(but is not limited to): • Detailed budget and accounting data; • Prior year's financial data, salary, position and staffing data; • Organizational structure; • Prior cost allocation plan and/or user fee documentation and models; and • Data related to various allocation bases that may be incorporated as part of the methodology, i.e. City Council agenda frequencies by department, AP/AR transactions by department, IT equipment distribution by department, etc. Deliverables: Willdan: Submit information request to City. City: Provide requested data to Willdan (prior to Task 2, Kick-off Conference Call/Refine Scope). We will follow up with the City to confirm in writing the data that we have received,or which is still outstanding. Task 2: Kick-off Meeting or Conference Call I Refine Scope Objective: Establish objectives and goals for this study, and identify and resolve policy issues raised by the study and determine appropriate fee categories. Description: Willdan will identify and resolve policy issues typically raised by these studies and address data gaps in order to gain a full understanding of the City's goals for the cost allocation plan. We will establish effective lines of communication and processes for information gathering and review. During this meeting or conference call, we will ask that the City assign a project manager to serve as its primary contact.The selected City project manager will ensure that available data is provided to Willdan in a timely manner, thereby maintaining adherence to the project's schedule. We will obtain and review the current cost allocation methodology and discuss with City staff. The objective of this review is to determine specific areas of focus as they relate to the City's objectives, and to discuss and evaluate current and potential allocation factors. Meetings: One (1) project kick-off meeting or conference call to initiate the project, discuss data needs and methodologies, and to address policy issues. WCOMPREHENSIVE. INNOVATIVE. TRUSTED. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kimberly Tiehen City of Coppell Letter Proposal to Prepare a Cost Allocation Plan Page 3 January 15 2020 Deliverables: Willdan: If needed, a revised project scope and schedule. City: Provide further data requirements and select I introduce City's project manager. Task 3: Gather Staffing Information and Develop Cost Allocation Plan Model Objective: Gather information related to indirect staffing and functions. Prepare draft cost allocation plan and model. Description: This task involves the gathering of specific information, directly from City staff,through interviews and discussion,related to the functions served by indirect staff and the departments served by their activities. Through this process, we will identify staff whose hours may be allocated, and who will participate in projects and/or programs to which overhead can be allocated. This task also focuses on the development of, and/or adjustment of existing, allocation bases.. and the development and testing of a model that will ultimately be used to calculate the proper cost allocations derived from data gathered in prior tasks, and to calculate overhead rates for staff and projects. We will utilize budget and organizational information, and other required information gathered from City staff to complete the work in this task. Specific discussions will be held to discuss bases, how central overhead services are provided to and utilized by other departments, cost categories and allocation criteria, and how these will factor into the overall cost allocation methodology. We will work with the City to review any existing Internal Service Funds (ISF) and their functions and structures, and incorporate them into the model and methodology. Meetings: Conference calls with staff to understand structure and operations as model and allocation bases are developed. Key staff will be interviewed to best understand central overhead staffing and functions and the departments served. Deliverables: Willdan:One(1)user-friendly model in Microsoft Excel format that provides a full cost allocation plan. Task 4: Test and Review Cost Allocation Methodology Objective: Test and review model and results with City. Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to ensure that preliminary allocations provide an accurate depiction of how the central overhead costs should be borne by the operating programs and funds. Over the past several years, we have successfully integrated online meetings by using GoToMeeting TM as an element to our approach.This allows us to remotely guide staff through the model review, and allows you the opportunity to interactively change inputs and test approaches. Meetings: One(1)conference call and online demonstration(GoToMeeting)to review the model. Deliverables: Willdan and City: Draft cost allocation plan model review. Task 5: Prepare and Present Draft Report Objective: Prepare the draft cost allocation report. Description: This task involves the draft report preparation. The cost allocation plan's background. model methodologies, and results will be discussed; calculations and supporting data will be presented textually and in easily understood tables, and provided to the City. Meetings: One(1)conference call to present the draft report to the City. WCOMPREHENSIVE INNOVATIVE. TRUSTED. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kimberly Tiehen City of Coppell Letter Proposal to Prepare a Cost Allocation Plan Page 4 January 15 2020 Deliverables: Willdan:Draft report for City review and input. City: Review of draft report,with comments, and edits. Task 6: Discuss and Revise Report Objective: Review of draft report,cost distribution methods, and model. Description: An in-depth review of the draft report and model will be conducted to arrive at an optimum allocation method for each expenditure type. Often,through the course of an engagement,comments usually revolve around issues of: understandability; appropriate levels of enterprise funds' cost recovery, etc.; ease of calculation; and overhead costs' distribution methods. Following a round of comments from City staff concerning the draft report, the final report will be prepared for presentation to the Council. Meetings: One(1) conference call with City staff to review the report. Deliverables: Draft report, and revised draft/final report. Task 7: Prepare and Present Final Report Objective: Prepare and present the final report to City Council. Description: This task is the culmination of the cost allocation plan project. Based on staff comments on the draft report,Willdan will prepare the final report for presentation to City Council. Meetings: One(1)meeting with the City Council to present the final cost allocation plan. Deliverables: Willdan: Provide five(5)bound copies,one(1)unbound copy,and one(1)electronic PDF file copy of the final report and model to the City. City Staff Support To complete our tasks, we will need the cooperation of City staff. We suggest that the City assign a key individual to represent the City as the project manager who can function as our primary contact. Willdan will endeavor to minimize the impact on City staff in the completion of this project. We anticipate that the City's project manager will: 1) Coordinate responses to requests for information; 2) Coordinate review of work products; and 3) Help resolve policy issues. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City's project manager to steer the project back on track. We will keep the City's project manager informed of data or feedback we need to keep the project on schedule. Willdan will rely on the validity and accuracy of the City's data and documentation to complete our analysis.Willdan will rely on the data as being accurate without performing an independent verification of accuracy, and that Willdan will not be responsible for any errors that result from inaccurate data provided by the client. Client shall reimburse Consultant for any costs Consultant incurs, including without limitation, copying costs, digitizing costs, travel expenses,employee time and attorneys'fees,to respond to the legal process of any governmental agency relating to Client or relating to the Project. Reimbursement shall be at Consultant's rates in effect at the time of such response. 407COMPREHENSIVE INNOVATIVE. TRUSTED EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kimberly Tiehen City of Coppell Letter Proposal to Prepare a Cost Allocation Plan Page 5 January 15 2020 Fee Proposal Not to Exceed Fee Full and OMB Compliant Cost Allocation Plan Based on our outlined work plan,we propose a not-to-exceed fixed fee of$14,500 for a Cost Allocation Plan. Notes: • There is no additional expense for a proprietary software program. • Our fee includes all direct expenses associated with the project. • We will invoice the City monthly based on percentage of project completed. • Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. We are very excited about the opportunity to provide these services to the City of Coppell. If you wish to discuss any aspect of this proposal, please contact me at(972)378-6588 or via email at diackson@willdan.com. Willdan reserves the right to invoice for services on a monthly basis. Payment is requested 30 days after receipt of each invoice. If this proposal is acceptable to you,please execute one copy of this letter and return it to our Plano office. Thank you for this opportunity;we look forward to working with you on this engagement. Respectfully submitted, WILLDAN FINANCIAL SERVICES \f Vie,,+.- ll ',,,. i _. d Dan V.Jackson Vice President ACCEPTED : • . OF / Date WCOMPREHENSIVE. INNOVATIVE. TRUSTED. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kimberly Tiehen City of Coppell Letter Proposal to Prepare a Cost Allocation Plan Page 6 January 15 2020 ATTACHMENT 1 TO LETTER AGREEMENT TERMS AND CONDITIONS The Letter Agreement between the City of Coppel'("Client")and Willdan Financial Services("WFS")is subject to these Terms and Conditions(collectively,this"Agreement"). 1. Additional Services. Additional services shall be performed by WFS only upon Client's request evidenced by a written addendum executed by both parties. 2. Compensation. WFS shall submit monthly statements for services. Payments shall be due and payable within 30 days of invoice and if not timely paid shall bear interest at the rate of 1.5%per month. 3. Termination. Either party may terminate this Agreement at any time upon 30 days'written notice. In the event of early termination,WFS shall be paid for services performed prior to the effective date of termination. 4. Data Provided by Client. WFS shall rely upon data provided by Client without independent verification of accuracy. WFS shall not be responsible for any errors resulting from its use of inaccurate data provided by Client. 5. Indemnification. Each Party shall indemnify the other from claims resulting from their respective negligence or other wrongful conduct or the negligence or other wrongful conduct of their respective officers, agents or employees. 6. Insurance. WFS shall maintain the following insurance: a. Workers'Compensation and Employer's Liability Insurance as prescribed by applicable law. b. Commercial General Liability Insurance, with limits not be less than $1,000,000 per occurrence and genera! aggregate. c. Commercial Automobile Liability with limits not less than$1,000,000 per occurrence. d. Professional Liability with limits not be less than$1,000,000 per claim and annual aggregate. e. All policies except Professional Liability and Workers Compensation shall include Client as an additional insured and be primary with respect to any insurance carried by WFS. All policies shall include a waiver of subrogation in favor of Client. f. WFS shall provide Client with certificates of insurance evidencing compliance with the above insurance requirements prior to commencing it services, 7. Miscellaneous. a. Titles used in this Agreement are for general reference and are not a part of the Agreement. b. This Agreement shall be interpreted as though prepared by both parties. c. Any provision of this Agreement held to violate any law shall be deemed void, and all remaining provisions shall continue in full force and effect. d. This Agreement shall be interpreted under the laws of the State of California. e. This Agreement comprises a final and complete repository of the understandings between the parties and supersedes all prior or contemporary communications,representations or agreements,whether oral or written,relating to the subject matter of this Agreement. f. Any notices given pursuant to this agreement shall be effective on the third business day after posting by first class mail, postage prepaid,to the address appearing immediately after the signatures below. g. WFS shall not be liable for damages resulting from the actions or inactions of governmental agencies including, but not limited to,permit processing or environmental impact reports. h. WFS's waiver of any term, condition, or covenant, or breach of any term, condition, or covenant, shall not constitute the waiver of any subsequent breach of any other term,condition or covenant. i. WFS shall not responsible for the performance of services by third parties not retained by WFS. Me/COMPREHENSIVE. INNOVATIVE. TRUSTED. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT Ms.Kimberly Tiehen City of CoppeII Letter Proposal to Prepare a Cost Allocation Plan Page 7 January 15 2020 WCOMPREHENSIVE INNOVA INNOVATIVE. TRUSTED. EXHIBIT"A" CITY OF COPPELL/WILLDAN FINANCIAL SERVICES PROFESSIONAL SERVICES AGREEMENT