HomeMy WebLinkAboutContract 47614 CpMCT�L!'/li l`
C
STATE OF TEXAS §
COUNTIES OF TARRANT §
DENTON AND WISE §
THIS AGREEMENT is made and executed by and between the City of Fort Worth, Texas,
a municipal corporation situated in Tarrant, Denton and Wise Counties, Texas,hereinafter called the
"City", acting herein by and through Jesus J. Chapa, its duly authorized Assistant City Manager,
and Arcadis U.S., Inc., hereinafter called the "Consultant," acting herein by and through Jennifer
Ivey, its duly authorized Vice President.
WHEREAS, the City desires to perform a Wholesale Wastewater Cost of Service and Rate
Study; and
WHEREAS, the City desires to hire a professional firm knowledgeable and experienced in
conducting such a study; and
WHEREAS, the Consultant has represented that it is knowledgeable and experienced in
conducting such a study.
NOW, THEREFORE, that for and in consideration of the mutual covenants and
agreements herein contained, the parties hereto do hereby covenant and agree as follows:
SECTION 1.
DEFINITIONS
In this Contract,the following words and phrases shall be defined as follows:
City's Representative means the Director of the Water Department or his designee.
Contract Documents means the Consultant's Draft Scope of Services and all its addenda, attached
as exhibit"A", this Contract and all other attachments.
Deliverable Document means a report, photograph, electronic file, or an invoice that shows the
completion of one of the work tasks and/or subtasks. Electronic files shall be in Word, Excel,
AutoCad, or similar software and shall be provided as requested by the City.
Notice to Proceed means the letter issued by the City that authorizes Consultant to begin work. It
also authorizes future invoices to be paid.
The City hereby contracts with the Consultant as an independent consultant, and the Consultant
hereby agrees to perform the professional services set out her_e1nia ce ith standard utility
rate-setting practices and policies. OFFICIAL Co","RE
C►TY SECT ETTA I-y
SECTION 2.
SCOPE OF SERVICES
The Consultant shall perform a Wholesale Wastewater System Cost of Service and Rate Study for
the fiscal year beginning October 1, 2016.
Unless otherwise directed by the City and agreed to by the Consultant,the deliverables shall include
the following as set forth by the City in accordance with Consultant's Response to the RFP as
described in Exhibit A. If there is a discrepancy between the scope of services listed below and the
Response,the list below shall prevail.
1. The Consultant will review all inputs made by Staff into the rate model.
2. The Consultant will review and confirm all calculations by the model related to establishing
revenue requirements:
a) operating expense;
b) depreciation expense; and
c) return on investment.
3. The Consultant will review and confirm all calculations by the model related to allocating
costs of service:
a) allocate cost of service to wastewater service functions; and
b) allocate functionalized costs to the wholesale customer class
4. The Consultant will review and confirm all calculations by the model related to calculating
and recommending rates and charges:
5. May 19, 2016 Preliminary Cost of Service and Rates Report;
6. June 9, 2016 1'Draft Cost of Service and Rates Report; and
7. July 14,2016 Final Cost of Service and Rates Report.
SECTION 3.
TIME OF PERFORMANCE
The term of this Agreement shall commence upon complete execution and shall terminate on
August 1, 2016,unless extended by mutual written agreement..
SECTION 4.
COMPENSATION TO THE CONSULTANT AND METHOD OF PAYMENT
As compensation for the services required to complete this Project in accordance with the terms of
this Agreement, the City agrees to pay the Consultant on the basis of the hourly rates set forth in
Exhibit B an amount not-to-exceed $40,390. This amount shall constitute full and complete
compensation for the Consultant' s services under this Agreement, including all expenditures made
and expenses incurred by the Consultant in performing such services.
Such compensation shall be paid to the Consultant in monthly installments upon submission of
statements, together with supporting data indicating the progress of the work and services
performed for the month immediately preceding. Invoices will be due upon receipt and payable
within thirty (30) days, subject to certification by the Director of the Water Department, or his
authorized representative, that such work has been performed and the expenses have been incurred.
Such certification shall not be unreasonably withheld or delayed.
Reimbursable expenses are part of the Not-to-Exceed amount and include, but are not necessarily
limited to subcontractors expenses, travel, report production and other out-of-pocket expenses,
which shall be paid based upon actual cost, supported by such documentation as the City may
reasonably request.
SECTION 5.
PROFESSIONAL RESPONSIBILITY AND WARRANTY
Consultant shall perform services consistent with skill and care ordinarily exercised by other
professional consultants under similar circumstances at the time services are performed, subject to
any limitations established by City as to degree of care, time or expense to be incurred or other
limitations of this Agreement. Consultant further warrants that it will perform all services under this
Agreement in a safe, efficient and lawful manner using industry accepted practices, and in full
compliance with all applicable state and federal laws governing its activities and is under no
restraint or order which would prohibit performance of services under this Agreement.
City expressly acknowledges and agrees that the Services provided by this Agreement do not and
shall not include: (1) serving as "municipal advisor"for purposes of the registration requirements of
Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) or the
municipal advisor registration rules issues by the Securities and Exchange Commission; (2)
advising Client, or any municipal entity or other person or entity, regarding municipal financial
products or the issuance of municipal securities, including advice with respect to the structure,
timing, terms,or other similar matters concerning such products or issuances; (3)the practice of law
or other legal services, nor any form of insurance advisory services.
SECTION 6.
ESTABLISHMENT AND MAINTENANCE OF RECORDS
Records shall be maintained by the Consultant at its place of business with respect to all matters
covered by this Agreement. Such records shall be maintained for a period of three (3) years after
receipt of final payment under this Agreement.
SECTION 7.
AUDITS AND INSPECTIONS
The Consultant agrees that the City shall, until the expiration of three (3) years after the final
payment under this Agreement have access to and the right to examine any directly pertinent books,
documents, papers and records of the Consultant involving transactions relating to this Agreement.
The Consultant agrees that the City shall have access during normal working hours to all necessary
Consultant facilities and shall be provided adequate and appropriate work space in order to conduct
audits in compliance with the provisions of this section. The City shall give Consultant reasonable
advance notice of intended audits.
The Consultant further agrees to include in all its subcontracts hereunder a provisions to the effect
that the subcontractor agrees that the City shall, until the expiration of three (3) years after the final
payment and directly pertinent books, documents, papers and records of such subcontractor,
involving transactions to the subcontract, and further, that City shall have access during normal
working hours to all subcontractor facilities, and shall be provided adequate and appropriate work
space, in order to conduct audits in compliance with the provisions of this article, and shall give
subcontractor reasonable advance notice of intended audits.
SECTION 8.
INDEMNITY
THE CONSULTANT AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS
THE CITY AND ITS OFFICIALS, AGENTS AND EMPLOYEES FROM AND AGAINST
ANY AND ALL THIRD PARTY CLAIMS, ACTIONS, SUITS OR PROCEEDINGS OF
ANY KIND BROUGHT AGAINST SAID PARTIES TO THE EXTENT CAUSED BY THE
NEGLIGENT ACT, ERROR, OR OMISSION OF THE CONSULTANT OR
CONSULTANT'S AGENTS, EMPLOYEE OR OFFICER, IN THE PERFORMANCE OF
SERVICES HEREUNDER. THE CONSULTANT IS NOT REQUIRED HEREUNDER TO
DEFEND, INDEMNIFY AND HOLD HARMLESS THE CITY OF FORT WORTH AND
ITS OFFICIALS, AGENTS AND EMPLOYEES FROM LIABILITY RESULTING FROM
THE NEGLIGENCE OR WRONGFUL ACTS OF THE CITY OR ANY THIRD PARTY.
THE INDEMNITY REQUIRED HEREUNDER SHALL NOT BE LIMITED BY REASON
OF THE SPECIFICATION OF ANY PARTICULAR INSURANCE COVERAGE IN THIS
AGREEMENT.
SECTION 9.
COMPLIANCE WITH LAWS
In providing the scope of services outlined herein, the Consultant shall comply with all applicable
laws, ordinances, and codes of the Federal, State and local governments.
Consultant certifies that on the day work is to commence under this Agreement and during the
duration of the Agreement, it shall have and maintain current valid and appropriate federal and state
licenses and permits necessary for the provision of services under this Agreement.
Consultant also certifies that if it uses any subcontractor in the performance of this Agreement, that
such subcontractor shall have and maintain current valid and appropriate federal and state licenses
and permits necessary for the provision of services under this Agreement.
SECTION 10.
NON-DISCRIMINATION
During the performance of this Contract, Consultant agrees not to discriminate against any
employee or applicant for employment because of race, religion, color, sex or national origin,
except where religion, sex or national origin is a bona fide occupational qualification reasonably
necessary to the normal operation of the Consultant. Consultant agrees to post in conspicuous
places, available to employees and applicants for employment, notices setting forth the provisions of
the non-discrimination clause.
Consultant also agrees that in all solicitations or advertisements for employees placed by or on
behalf of this Contract,that Consultant is an equal opportunity employer.
Notices, advertisements, and solicitations placed in accordance with federal law, rule or regulation
shall be deemed sufficient for the purpose of meeting the requirements of this section.
SECTION 11.
MODIFICATION
No modification of this Agreement shall be binding on Consultant or the City unless set out in
writing and signed by both parties. Modifications shall be in the same format as the final
specification showing the change or addition of a task, project schedule, deliverable document(s),
and schedule of payments.
SECTION 12.
PERSONNEL
The Consultant represents that it has, or will secure at its own expense, all personnel required in
performing all of the services required under this Agreement. Such personnel shall not be
employees of or have any contractual relationships with the City.
All the services required hereunder will be performed by the Consultant or under its supervision and
all personnel engaged in the work shall be qualified and shall be authorized or permitted under state
and local law to perform such services.
The Consultant represents that the Consultant's Project Manager, Jennifer Ivey, is available to
ensure completion of the scope of services pursuant to this Agreement.
SECTION 13.
ASSIGNA;;ILITY
Neither party hereto shall assign, sublet or transfer its interest herein without prior written consent of
the other party, and any attempted assignment, sublease or transfer of all or any part hereof without
such prior written consent shall be void.
SECTION 14.
DEFAULT
Consultant shall not be deemed to be in default because of any failure to perform under this
Agreement, if the failure arises from causes beyond the control and without the fault or negligence
of Consultant. Such causes shall include acts of God, acts of the public enemy, acts of Government,
in either its sovereign or contractual capacity, fires, flood, epidemics, quarantine restrictions, strikes,
freight embargoes, and unusually severe weather.
If Consultant fails to begin work herein provided for within the time specified above, or to complete
such work within the time specified above, within the true meaning of this Agreement, City shall
have the right to take charge of and complete the work in such a manner as it may deem appropriate.
If City exceeds the costs detailed in the attached documents, City may deliver to Consultant a
written itemized statement of the total excess costs, and Consultant shall reimburse City for such
excess costs without delay.
If, at any time during the term of this Contract, the work of Consultant fails to meet the
specifications of the Contract Documents, City may notify Consultant of the deficiency in writing.
Failure of Consultant to correct such deficiency and complete the work required under this
Agreement to the satisfaction of City within ten (10) days after written notification shall constitute
default, and shall result in termination of this Agreement. All costs and attorneys fees incurred by
City in the enforcement of any provision of this Agreement shall be paid by Consultant.
The remedies provided for herein are in addition to any other remedies available to City elsewhere
in this Agreement and by law.
SECTION 15.
TERMINATION OF CONVENIENCE OF CITY
The City may terminate this Agreement for its convenience at any time by giving at least ten (10)
days notice in writing to the Consultant. In the event of termination pursuant to this paragraph,
Consultant shall be entitled to receive payment for all work completed or in progress, and for costs
reasonably incurred to close out its project services. Compensation is to include fees, expenses, and
liabilities to subcontractors or other third parties. Consultant will make reasonable attempts to
cancel all such liabilities in order to mitigate the cost to the City.
SECTION 16.
INSURANCE
Consultant shall maintain at its own expense the following insurance:
1. Commercial General Liability(CGL)
$1,000,000 each occurrence
$2,000,000 aggregate limit
2. Workers'Compensation
Statutory limits
Employer's liability
$100,000 each accident/occurrence
$100,000 Disease- each employee
$500,000 Disease-policy limit
3. Automobile Liability
$1,000,000 each accident on a combined single limit basis
Split limits are acceptable if limits are at least:
$250,000 Bodily Injury per person/
$500,000 Bodily Injury per accident/
$100,000 Property Damage
4. Errors & Omissions(Professional Liability)
$1,000,000 per claim and aggregate
The certificate of insurance shall document the City of Fort Worth, its' Officers, Employees and
Volunteers as an "Additional Insured" on all liability policies. The additional insured
requirement does not apply to Workers' Compensation policies
The certificate of insurance shall provide thirty days (30) notice of cancellation or non-renewal.
Example: "This insurance shall not be canceled, limited in scope or coverage, cancelled
or non-renewed, until after thirty (30) days prior written notice has been given to the City
of Fort Worth.
The certificate shall be signed by a agent authorized to bond coverage on behalf of the insured,
be complete in its entirety, and show complete insurance carrier names as listed in the current
A.M. Best Property& Casualty Guide
All policies shall include a Waiver of Subrogation (Rights of Recovery) in favor of the City of
Fort Worth.
The insurers for all policies must be licensed and/or approved to do business in the State of
Texas. Except for workers' compensation, all insurers must have a minimum rating of A-: VII in
the current A. M. Best Key Rating Guide or have reasonably equivalent financial strength and
solvency to the satisfaction of Risk Management. If the rating is below that required, written
approval of Risk Management is required.
If insurance policies are not written for specified coverage limits, an Umbrella or Excess
Liability insurance for any differences is required. Excess Liability shall follow form of the
primary coverage.
"Unless otherwise stated, all required insurance shall be written on the "occurrence basis". If
coverage is underwritten on a claims-made basis, the retroactive date shall be coincident with or
prior to the date of the contractual agreement and the certificate of insurance shall state that the
coverage is claims-made and the retroactive date. The insurance coverage shall be maintained
for the duration of the contractual agreement and for three (3) years following completion of the
service provided under the contractual agreement or for the warranty period, whichever is longer.
An annual certificate of insurance submitted to the City shall evidence such insurance coverage.
Policies shall have no exclusions by endorsements, which nullify the required lines of coverage,
nor decrease the limits of said coverages unless such endorsements are approved in writing by
the City. In the event a contract has been bid or executed and the exclusions are determined to be
unacceptable or the City desires additional insurance coverage, and the City desires the
Consultant/engineer to obtain such coverage, the contract price shall be adjusted by the cost of
the premium for such additional coverage plus 10%.
Certificates of Insurance shall be furnished to the City upon the request of the City.
SECTION 17.
SEVERABILITY
If any portion of this Contract is held to be void, invalid, or otherwise unenforceable, in whole or
part, the remaining portions of this Contract shall remain in effect.
SECTION 18.
VENUE
Should any action, whether real or asserted, at law or in equity, arise out of the terms of this
Contract, venue for said action shall be in Tarrant County,Texas.
SECTION 19.
NOTICES
All written notices to the respective parties shall be sent by registered mail and be addressed as
follows:
CITY OF FORT WORTH CONSULTANT
John Carman Jennifer Ivey
Water Department Director Vice President
City of Fort Worth Arcadis U.S., Inc.
1000 Throckmorton 777 Main Street, Suite 1250
Fort Worth, Texas 76102 Fort Worth, TX 76102
SECTION 20.
CAPTIONS
The captions of this Contract are for informational purposes only and shall not in any way affect the
substantive terms and conditions of the Contract.
SECTION 21.
CONFLICTS
This Contract is the sole agreement between the City and the Consultant and any and all other prior
agreements,whether oral or written, are merged into this Contract and of no further force or effect.
EXECUTED on this, the I? day of 5 2016.
Arcadis U.S.,Inc. City of Fort Worth,Texas:
fer Ivey Jay Cha
S Vice Pr i ent Assistant City Manager
14 L : /151zj1�
�—
Date Date
Approval Recommended
Witness fin Carman, .,Director
Fort Worth Water Department
APPROVED AS TO FORM AND
LEGALITY:
OFFICIAL RECORD
CITY SECRETARY hrista W. Lopez-Reye ds
FT.WORTHo TX Senior Assistant City Attorney
ATTEST:
Mary ays �� FC�i
City Secretary
V
910Z 9 l .�c g g�
� r
NO M&C RLaQUIR.E.
Exhibit A
Consultant's Response to RFP
Exhibit B
Compensation Schedule of Hourly Rates
Standard Quoted Number Hours
Hourly Hourly of per Grand
Title Hours Rates Rates Total Meetings Meeting Totals
Project QA/QC 8 $275 $275 $2,200
Project Manager 78 $275 $275 $21,450 4 4
Financial Consultant 92 $158 $158 $14,536
Senior Technical Advisor 4 $275 $275 $1,100
Support Staff 8 $138 $138 $1,104
Subtotal 202 $40,390
Out-of-pocket Expenses
Travel
Other
Total all-inclusive maximum price for rate
study $40,390
04ARCADIS Arcadis U.S.,Inc.
777 Main Street,Suite 1250
January 29, 2016 Fort wort,,Texas 76102
Tel 817 877 9978
Skipper Shook, Sr. - Utility Rate Analyst Fax 817 885 8676
Fort Worth Water Department www.arcadis.com
1000 Throckmorton, Second Floor
Fort Worth, Texas 76102
Subject:
PROPOSAL:Wholesale Wastewater Cost of Service and Rate Study
Dear Mr. Shook:
Arcadis U.S., Inc. (Arcadis) is pleased to present our proposal in response to the subject RFP.We
understand that the Fort Worth Water Department(Department) needs a qualified consultant that
possesses a full suite of financial, business advisory, and engineering capabilities to complete a wholesale
wastewater cost of service and rate study. Arcadis offers the following advantages to the Department:
• Nationally Recognized Leadership with Local Presence—Our combination of nationally
recognized utility finance experts and a responsive local Project Manager has proven to be a
�- successful combination in working with Texas utilities, including Fort Worth. Members of our
project team are actively involved via leadership positions in the national and regional rate-setting
and utility finance committees of the AWWA and WEF and are contributing authors of industry
publications regarding utility cost of service methodologies.
• Unparalleled Experience with Texas Utilities—We understand the dynamics of providing water
and wastewater utility services in the State of Texas, having served the largest municipal utilities
in Texas, including Fort Worth, Arlington and Irving. This vast local experience, combined with
nationally recognized experts, provides the City with the necessary level of expertise to complete
the proposed study.
• Ability to Meet Your Study Schedule—Our extensive experience with past wholesale cost of
service studies for Fort Worth enables us to quickly identify and mitigate potential problems,
thereby allowing the study to proceed efficiently.We have successfully met or exceeded the
schedule for these past studies, as well as aggressive schedules for numerous other utilities.
Our experience with these clients, other municipalities, and more importantly, our team's expertise in utility
ratemaking will benefit you because we are able to quickly integrate our proven approach with your unique
needs, thereby allowing implementation to proceed smoothly. We understand the priorities of the
Department and the wholesale customers, as well as the issues that can have an impact on project
success.
Thank you for the opportunity to provide this proposal for your important project. If there are any questions
regarding our proposal, please contact me at(972)339-0783 or at Jennifer.lvey@arcadis.com.
Sincerely,
Arcadis U.S., Inc.
Jennifer Ivey, PE
Vice President
CERTIFICATE OF INTERESTED PARTIES FORM 1295
OFFICE USE ONLY
Complete Nos. 1 - 4 and 6 if there are interested parties.
Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties.
1 Name of business entity filing form,and the city,state and country of the business
entity's place of business.
Arcadis U.S.,Inc. 777 Main Street,Suite 1250 Fort Worth,TX 76102
2 Name of governmental entity or state agency that is a party to the contract for
.� which the form is being flied.
w
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,
and provide a description of the goods or services to be provided under the contract.
4
City,State,Country Nature of Interest(check applicable)
Name of Interested Party (place of business)
Controlling Intermediary
Arcadis U.S.,Inc. 777 Main Street, Suite 1250 X
Fort Worth TX 76102
5 Check only if there is NO Interested Party. ❑
6 AFFI AVIT swear, or Ir under penalty of perjury,that the above isclosure is true and correct.
�:�:ei�:CFIARNAWEiiiuRa:l1RICHARDSON
*`- MY COMMISSION EXPIRES
="tv Septeffftr 19,2016
Signature of uth rized agent of contractin b siness entity
AFFIX NOTARY STAMP / SEAL ABOVE
Sworn to and subscribed before me,by the said `�C.I ll�t -r�/�- this the day
0 20 ! a to certify which,witness my hand and seal of offi.4.
�n-
Signat a of officer administering oath Printed name of officer administering oath Title of off' r administering oath
ADD ADDITIONAL PAGES AS NECESSARY
Form provided by Texas Ethics Commission www.ethics.state.tx.us Adopted 10/5/2015
04ARC(ADIS Wholesale Wastewater Cost of Service and Rate Study
Qualifications . -
Firm Description Arcadis staff members hold leadership roles in and have
Arcadis is an international leader in the fields of provided expert assistance to leading organizations such
as the AWWA,Water Research Foundation (formerly
infrastructure,water,buildings and environment AwwaRF),Water Environment Research Foundation
with our multidisciplinary staff that provides design, (WERE), and WEF, in developing best practice
engineering and management services to public and methodologies for the municipal community. Several
private clients around the globe. For 128 years,Arcadis members of our Financial Services group are primary
has been designing the human habitat,setting industry authors of industry texts regarding issues facing municipal
standards with patented technologies and published utilities.These professionals have authored chapters in
works. related publications,conducted industry polls, and delivered
Arcadis' Business Advisory practice focuses on the informational and training workshops.Our financial
financial, management, organizational, and information consultants regularly give presentations at regional and
technology needs of municipalities and public utilities. national conferences,including the AWWANVEF Utility
As a group within Arcadis,we have the resource Management Conference. Our staff and clients consistently
benefit from the up-to-date knowledge gained and shared
support and technical engineering backing of a global by our experts in all aspects of the water environment field.
engineering firm. Synergy between our business
advisory consultants and our engineering experts Arcadis'Fort Worth and Dallas offices have been
brings depth and breadth of knowledge to our clients, providing planning, design and consulting services to
so that clients receive the highest-quality expertise and North Texas municipalities and utilities for over 20 years.
project deliverables. We have completed and continue to provide successful
Our experts have provided financial services to most projects for the City.
of the major municipalities in Texas, including the City
of Fort Worth,and throughout the country. Arcadis
consultants advise clients on how to respond to
continually evolving challenges using practical,feasible
approaches to address issues in the context of their
unique organizations. We provide enduring solutions w
for our communities with a concentration on the
environment.
EI Paso Dalm
• FGA V*VM
tuMcln
Size of Firm Midland +♦
Our Business Advisory practice includes over 200 AnOn(2)
professionals whose experience and dedication help •gm
., clients achieve their most important utility management Santo� Nederland
goals and objectives.With 22,000 employees
worldwide,Arcadis has an extensive network
Laredo Corpus Christi
supported by strong local market positions to provide
support to your study.
Industry Leadership
Our Project Manager,Ms. Ivey is an active member Arcadis Texas Office locations
of the national industry association committees
that develop guidelines and best practices for utility
financial management, including the AWWA M-1
Manual and the WEF Manual of Practice 27. FO T �QR
AARCADIS Wholesale Wastewater Cost of Service and Rate Study
Organizational Chart A/B. Project Team
By selecting Arcadis,the Fort Worth Water Department Qualifications
(Department)will receive a carefully selected team
of professionals who not only possess relevant local Jennifer Ivey, PE TI-Project Manager
knowledge, but also offer the technical experience needed Location:Dallas,TX
to review and update your impact fee program.We are Education:BS Civil Engineering University of Texas,
proposing a proven team with substantial experience Austin 1998; MBA Finance Southern Methodist
working together on similar projects which provides University 2003
significant benefit to the Department in terms of the
management of the collective resources and the proven Ms. Ivey is aVice-President and Texas Area Leader
track record of successful project implementation of this for the Water Business Line. She has served as project
team. manager and lead financial analyst on numerous multi-
year financial planning, impact fee, bond feasibility and
The organizational chart below presents the Arcadis cost of service, rate and charge studies. In addition,
team, including project management and project delivery Ms. Ivey has experience as a project engineer on
leadership and resources. Brief key project team member various civil and environmental engineering design
qualifications are presented below. Full resumes can be projects, including water and wastewater, roadway
found at the end of the SOQ, starting on page 15. and drainage facilities. She is a member of the AWWA
Rates and Charges Committee and the WEF Utility
Management Committee, and has presented at several
national and regional industry association conferences
and seminars.
FORT WORTH
City Project Manager
Technical Advisor
Randy McIntyre, PE
Project Manager
Jennifer Ivey, PE
Richard Campbell
Financial
Isalah Barnes
Shireen Abdullah
FORT WORTH
2
OAARCADES Wholesale Wastewater Cost of Service and Rate Study
Richard Campbell - QA/QC years'experience in rate studies,working with water,
Location:Dallas,TX wastewater, and stormwater municipal utilities. In
Education:BS Electrical Engineering, University of addition, she conducts affordability and cost/benefit
Central Florida, 1992; United States Naval Nuclear analyses. Ms. Barnes has worked with the cities of
"" Power Training Longmont, Castle Rock and Lakewood in their rate
studies as well as Colorado Springs and Northglenn on
Mr.Campbell has extensive consulting experience various studies. Prior to joining Arcadis, Ms. Barnes
and has served as project manager on a variety of worked with JP Morgan's Retirement Planning Services
projects associated with municipal electric, natural gas, group where she was responsible for managing client
water,wastewater, stormwater and reclaimed water investment portfolios and private investment strategies.
utilities. His experience encompasses the full range She brings with her a solid background in financial
of utility finance issues, including wholesale and retail analysis and economic theory.
ratemaking, revenue bond financial feasibility reports, Shireen Abdullah-Financial Analysis
valuation studies for acquisitions and mergers(including
condemnation proceedings), capital financing analyses, Location:Washington, DC
economic feasibility studies,and strategic and business Education:BS Information Systems Technology
planning. University of Houston 2003; MBA-University of
.�
Randy McIntyre, PET'S- Technical Advisor Houston 2006
Location:Dallas,TX Ms.Abdullah is a senior financial consultant with 13
years of experience in developing financial strategies,
Education:BS Civil Engineering University of Texas, increasing efficiency, and creating business solutions
Arlington 1984; M. Eng Civil and Environmental
Engineering University of Texas,Arlington 1992 within the public and private sector. She has assisted
with financial analysis for several rate and impact fee
Mr.McIntyre has been involved with many environmental, studies for municipalities, including Fort Worth,TX; San
water,wastewater, stormwater study and design projects Antonio Water System,TX; City of Tempe,AZ;and
in Texas for over 32 years. Using his previous operations Oklahoma City Water Utilities Trust, OK. Her experience
and maintenance experience, he has provided technical also includes serving as the Finance Director for a small
support on many facility studies, condition assessments, Texas municipality.
operations, maintenance and utility rate and impact fee
studies to provide capital planning and operational cost
planning. He has completed many engineering design
and construction management projects,and is very
familiar with utility systems and operations. Recently,
Mr.McIntyre was part of a team that updated design
standards and ordinances for utilities, roadways,and
stormwater for the City of Arlington.
Mr.McIntyre is the principal and technical advisor for all
financial studies in north Texas.
Isaiah Barnes- Financial Analysis
Location:Atlanta, GA
Education:BA Economics University of Northern
Colorado 2003; MBA-Regis University 2007
Ms. Barnes is a senior financial consultant specializing
in financial modeling, long-range planning, cost of
service analysis, and rate design. She has over eight
FORT WORTH
3
04ARCADIS Wholesale Wastewater Cost of Service and Rate Study
Education
BS Civil Engineering University of Jennifer Ivey, ■
Texas,Austin 1998 Project . •er
MBA Finance Southern Methodist
University 2003 As the primary point of contact and Project Manager,Jennifer Ivey is Vice
Years of Experience President and Area Leader for Texas for the Water Business Line. She has served
Total—18 as project manager and lead financial analyst on numerous multi-year financial
planning, impact fee, bond feasibility and cost of service, rate and charge studies.
Professional Registrations In addition, Ms. Ivey has experience as a project engineer on various civil and
Professional Engineer(TX) environmental engineering design projects, including water and wastewater,
Professional Affiliations stormwater,and transportation infrastructure. She is a member of the AWWA
American water works Association, Rates and Charges Committee and the WEF Utility Management Committee and
Rates and Charges Committee has presented at several national and regional industry association conferences
Member and seminars.
American Water Works Association,
Texas Section,Rates and Charges
Committee Member Detailed Experience
Chi Epsilon-National Civil City of Fort Worth:Wholesale Water and Wastewater Cost of Service Rate
Engineering Honor Society,Member Studies/Fort Worth TX.Managed cost-of-service rate studies for the City of
Water Environment Association of Fort Worth's wholesale water and wastewater customers using the utility basis
Texas,Member
Water Environment Federation,Utility approach to determine the wholesale revenue requirements. Input current test
Management Committee Member year data into the existing cost-of-service and rate model to determine the
recommended wholesale water rates for 2006,2012 and 2015 and wholesale
wastewater rates for 2008 and 2011. Prepared detailed reports summarizing the
• results of each study and presented study findings and proposed rates at several meetings of the Wholesale Water and
Wastewater Advisory Committee and Subcommittee.
City of Fort Worth: Preliminary Rate Study, Fort Worth,TX.Analyzed data from Texas utilities to determine impact
of various degrees of outside watering restrictions on water production, utility revenues, and rates. Study also included
recommending cost allocations and rate structures to improve revenue stability using defensible methodology.
City of Houston Department of Public Works and Engineering:Water and Wastewater Cost of Service Rate
and Impact Fee Study/Houston TX. Managed a study that included development of a 10-year financial plan, cost
of service analysis, rate structure design, development of land use assumptions,evaluation of capital improvements
program, calculation of maximum impact fees and public information program. Developed implementation plan to
transition toward cost of service-based rates while reducing impact on customers. Recently updated cost of service
analysis using model from original rate study.
Oklahoma City Water Utilities Trust:Water and Wastewater Cost of Service, Rate Design and Associated
*' Financial Planning Services/Oklahoma City OK.Managing study to develop cost of service rates and system
development charges.Analyzing customer billing and financial data to determine revenue requirements.Allocating
revenue requirements to functional categories and rate components to determine class cost of service. Study also
includes transitioning rates toward cost of service, presenting study findings and recommendations to stakeholders and
training staff on use of financial planning and rate models.
Town of Castle Rock: Rate and Fee Study/Castle Rock CO. Developed ten-year financial plan and conducted
cost of service analysis for water,wastewater,water resource,and stormwater utilities.Also updated the system
development charges for water,wastewater,and stormwater.
FORT WORTH
4
ARCADISWholesale Wastewater Cost of Service and Rate Study
Jennifer Ivey, PE
Project Manager
City of Irving: Reclaimed Water Rates/Irving TX.Assisting City with cost of service study for proposed reclaimed
water system. Evaluating various financing alternatives for reclaimed water capital costs. Developed rate model to
identify costs and benefits of reclaimed water and calculate cost-based rate for reclaimed water service.
City of Arlington:Water and Wastewater Rate Study/Arlington TX.Managed a cost of service and rate study for
water and wastewater utilities. Prepared two financial plan scenarios to vary capital financing options. Evaluated class
cost of service and compared to revenue under existing rates. Developed rates using three alternative rate structures.
Prepared study report summarizing assumptions,findings and recommendations. Study included presentations to
senior management and City Council.
City of Austin Water Utility:Water/Wastewater Cost of Service Rate Study/Austin TX. Performed a cost of
service and rate study for water and wastewater utilities. Prepared several issue papers to educate Public Involvement
Committee(PIC)about issues relating to cost of service methodologies and rate design, including cost allocations to
BOD, TSS, and other measures of wastewater strength. Presented issue paper topics to PIC and utility's Executive
Committee. Developed cost of service and rate models for water and wastewater utilities. Prepared report summarizing
study assumptions, analysis,and recommendations.
City of Glendale:Water and Wastewater Rate and Development Impact Fee Study/Glendale AZ. Managed
study to update financial model to forecast revenues and expenses for 10-year study period and determine revenue
increase required in each year of study period. Recommended bond issue amounts for 10-year study period to meet
minimum fund reserves and debt service coverage requirements. Designed rate structure to recover cost of service and
made recommendations to Utility Management. Used marginal and hybrid methods to calculate maximum supportable
water and wastewater development impact fees. Prepared report and presentation summarizing results of study and
recommended rates and development impact fees. Met with developers to present development impact fee study
results. Provided model training session and Model User Manual for City staff.
City of Columbus: Comprehensive Rate and Charges Study/Columbus OH. Performed a cost of service and
rate study for the City of Columbus' Division of Sewerage and Drainage. Updated the City's existing rate model to
recommend a rate structure to meet the Division's revenue requirements. In addition to the sewer rate study, performed
a sewer capacity fee study using both the buy-in approach and the incremental approach to calculate the recommended
capacity charges for each meter size. Prepared a report summarizing the results of the rate study and the capacity fee
study with the recommended rates and charges.
City of Jersey Village: Water and Wastewater Financial Planning Study/Jersey Village TX.Managed a Water and
Wastewater Financial Planning Study to determine annual revenue requirements for 5-year period, cost of service by
customer class, and recommended rate structure and rates. Study included development of and staff training on cost of
service rate model,comprehensive study report and presentations to City Council.
FORT WORTH
5
ARCADESWholesale Wastewater Cost of Service and Rate Study
Education
Richard Campbell
BS Electrical Engineering,University QA
of Central Florida,1992
United States Naval Nuclear Power
Training Mr. Campbell has extensive consulting experience and has served as project
manager on a variety of projects associated with municipal electric,natural gas,
Years of Experience water,wastewater, stormwater and reclaimed water utilities. His experience
Total-z� encompasses the full range of utility finance issues, including wholesale and
Professional Affiliations retail ratemaking, revenue bond financial feasibility reports,valuation studies for
American Public Power Association acquisitions and mergers(including condemnation proceedings),capital financing
American Water Works Association analyses, economic feasibility studies,and strategic and business planning.
National AWWA Rates and Charges Mr.Campbell currently serves on the American Water Works Association's
Committee National Rates and Charges committee.
Detailed Experience
City of Fort Worth:Wastewater Wholesale Cost-of-Service and Rate Study/Fort Worth,TX. Mr.Campbell
served as Project Manager for a wastewater cost-of-service and rate study to determine the annual wholesale
revenue requirements for a prospective test year based upon the most recent actual historical costs,adjusted for
known and measurable changes.Annual revenue requirements were classified under the utility basis approach and
assigned to functional cost categories(volume/capacity, BOD, TSS and metering) using a design-causative approach.
Functionalized costs were then allocated to approximately 27 individual wholesale customer entities based on their
respective loadings and strength contributions to the system, and charges under a four-part rate structure were
developed.The results were presented in a series of meetings to a Wastewater Wholesale Advisory Subcommittee and
ultimately to the full Advisory Committee.
City of Dallas:Water[Wastewater Cost of Service&Rate Studies I Dallas,TX. Mr. Campbell was responsible for
conducting a comprehensive water and wastewater cost of service and rate design study for the Dallas Water Utilities.
The study involved determining fair and equitable rates for treated and untreated water service, retail and wholesale
service, and in-City residential and general service customer classes. Untreated or raw water rates were developed for
interruptible and non-interruptible service.The utility basis approach to determining and allocating revenue requirements
of DWU's utility systems was conducted which also recognized current standard wholesale contract requirements. The
revenue requirements for the test period reflected actual utility costs, adjusted for known and measurable changes,
which included operation&maintenance expenses, annual depreciation, and return. Modifications to current cost of
service methodologies and processes were identified recognizing accepted industry rate-making practices.A computer
rate model was developed for the City's continuing use to assist with the implementation of needed changes in future
years. Preliminary and final results of the study were presented and discussed in several meetings with representatives
of DWU's wholesale customer committee and the Dallas City Council.
San Antonio Water System(SAWS): Unbundled Cost-of-Service and Rate Design Study/San Antonio,TX.
Mr.Campbell has served as Project Manager to provide a cost-of-service and rate study for SAWS. SAWS desired to
have a comprehensive study of all of its current rates for the water and wastewater utilities performed.The goals of this
study were to fully evaluate and design rates for watertwastewater that will promote and cause a change in the usage
characteristics of certain SAWS customer classes;obtain buy-in from external and internal stakeholders,which included
an established Citizen's Advisory Committee;and functionally unbundle the cost of service for each utility for use in rate
design to move toward operating each utility as a stand-alone entity.This study also included developing a computer
model that would allow SAWS to evaluate various water supply scenarios and determine the impact upon the total
system.
FO T WORTH
6
ARCADISWholesale Wastewater Cost of Service and Rate Study
City of Fort Worth: Inside-Outside City Rate Differential Study/Fort Worth,TX. Mr. Campbell served as Project
Manager for a watertwastewater Inside-City/Outside-City rate differential study to determine fair and equitable rates
applicable to outside-city customers.This process required a cost-of-service evaluation to adequately allocate proper
costs to various rate classes based upon a pre-determined test.
JEA(Jacksonville Electric Authority): Unbundled Cost-of-Service, Rate Design and Impact Fee Study/
Jacksonville, FL.Mr.Campbell has served as Project Manager to provide a cost-of-service and rate study and capacity
fee study for JEA. JEA desired to have a comprehensive study of all of its current rates,fees and charges for the
electric,water,wastewater,and reclaimed water utilities performed.The goals of this study were to fully evaluate and
optimize the revenue generating potential of every rate and charge in place for the system; design rates for electric and
water/wastewater that will promote and cause a change in the usage characteristics of certain JEA customer classes;
evaluate the appropriateness and cost recovery mechanisms of each ancillary fee and miscellaneous service charge;
obtain buy-in from external and internal stakeholders;functionally unbundle the cost of service for each utility for use in
rate design and for future use in a partially or totally deregulated environment; and successfully obtain approval from the
Florida Public Service Commission for any and all rate changes.
Miami-Dade County Water and Sewer Department/2007-2015 Water and Sewer Cost of Service and Rate Study/
Miami, FL.The Miami-Dade County WASD provides utility services to both residential and nonresidential customers as
well as many wholesale customers. Mr. Campbell serves as the Project Manager for the ongoing Water and Sewer Cost
of Service and Rate Study. One of the major goals of this study is to design an equitable rate structure that is consistent
with industry standards and provides economic incentives to encourage conservation.To assist in the strategic planning
efforts of the City,the study addresses certain areas of concern with regard to the customer characteristics and
associated billing practices, as well anticipated funding mechanisms for the capital improvement program. The study
includes the development of a 10-year projection of operating results in order to provide a strategic planning tool for
estimating future revenue needs and rate impacts.
The study includes,on an annual basis,the development of Wholesale customer true-up rates and Wholesale rates
for the upcoming year. Along with the annual Wholesale rate development,we assist the WASD with Staff/Wholesale
customer presentations.
City of Brownsville:Water/Wastewater Impact Fee Study/Brownsville,TX.Mr. Campbell has served as Project
Manager for the last two WMIW Impact Fee Studies conducted for the City of Brownsville in 2006 and 2009.These
studies were conducted for the purposes of determining the maximum allowable impact fees for a projected five-year
test period.This process required development of projected land use assumptions, as well as a capital improvement
plan to meet system needs for the projected study period.The analysis required review of the City's existing impact fees
that are applied to all new development as a means of recovering capital costs of facilities constructed to make capacity
available for such new development. In addition to adjusting the fees to allow for greater capital recovery,the study also
reviewed the methodology for applying the fees to provide for a more administratively efficient process.
City of Brownsville:Water/Wastewater Cost-of-Service and Rate Study/Brownsville,TX.Mr. Campbell has
served as Project Manager for a water/wastewater cost-of-service and rate study to determine revenue requirements
and applicable customer class rates for a specific test year period. This process required a cost-of-service evaluation to
adequately allocate proper costs to various rate classes based upon a pre-determined test year.
City of Round Rock:Water/Wastewater Cost of Service and Rate Study/City of Round Rock,TX.Mr. Campbell
served as Project Manager in conducting a study of the revenue requirements, costs of service, and rates for the City's
water and wastewater systems.The study included the development of a computer rate model that would accommodate
the implementation of optional annual and biennial scheduling of rate adjustments.A follow-up study included the
evaluation of alternative water conservation rate structures that included meeting with the City Council various
shareholders in a series of workshops to select and design new rates that met the City's financial goals.
FORT WORTH
7
PARCADIS Wholesale Wastewater Cost of Service and Rate Study
Education _
_ BS Civil Engineering University of Randy
Texas,Arlington 1984 Technical
MEng Civil and EnvironmentalAdvisor
Engineering University of Texas,
Arlington 1992
Mr. McIntyre has been involved with many water and wastewater treatment plant
Years of Experience design and study projects in North Texas for over 35 years. He has designed and
Total-35 managed various pumping and treatment plant projects,water and wastewater
Professional Registrations plant expansions and operations, environmental projects,water and wastewater
Professional Engineer(TX) distribution/collection,flood plain studies, stormwater improvements, stream and
Professional Affiliations lake quality monitoring, environmental permitting, dam improvements, intake
m Water Environment Federation pumping stations,tunnels and facility operation planning.Additionally, he has an
American Water Works Association operations and maintenance perspective of facilities while working for the Trinity
American Academy of Environmental River Authority of Texas.
Engineers
Detailed Experience
City of Arlington: Water Treatment Plant Rehabilitation,Improvements and Optimization Master Plan/Arlington
TX. Project Principal to provide a water treatment rehabilitation,improvements and optimization plan to streamline
water production operations and transfer capital costs to improve the reliability, redundancy,efficiency and sustainability
of its treatment system, including the 75 mgd Pierce-Burch and 97.5 mgd John Kubala Water Treatment Plants.
City of Arlington: Design Criteria Manual&Unified Stormwater Ordinance/Arlington TX. Developed and updated
design standards and specifications for all future construction and stormwater management for the City.
Arlington Water Utilities: Lake Arlington Master Plan/Arlington TX. Principal and technical expert providing
evaluations of water quality and lake usages on system master plan, including watershed modeling, lake modeling,
development planning, lake usage evaluations, boating capacity study, development standards and recommendations
to maintain quality of urban drinking water supply lake.
Trinity River Authority:Tarrant County Water Supply Project-Water System Evaluations,Transfer Service Main
and Pumps Station Design/Euless TX. Project manager for modeling of transmission mains and high service water
supply system that provides water and pressure to five wholesale water customers. Evaluated the impact of pump
station and pipelines using hydraulic and surge analysis modeling and designed surge control facilities.
Trinity River Authority:Tarrant County Water Supply Project—87 MGD Expansion and Reliability Projects I
Euless TX. Principal/Project engineer for water treatment plant expansion, ozone systems for disinfection,
rehabilitation and systems to improve operations and reliability. Principal for study of interconnection and system
backup to Arlington&Fort Worth systems.
City of Dallas: Elm Fork Water Treatment Plant Master Plan/Dallas TX. Principal for plant facility evaluations,
surveys, operations assessment, alternative treatment systems and development of master plan of plant improvements.
City of Dallas:Water Master Plan and Water Quality Study/Dallas TX. Project engineer for water distribution
facility condition assessment. Field inspection,facility evaluation and recommendation of improvements of the water
distribution pumping stations, ground storage tanks and elevated tanks.Technical reviews of study of potable water
system from raw water sources to customer tap delivery to improve potable water quality and stability. Development of
water treatment goals, booster chlorine stations,water distribution monitoring and action plan.
City of Lewisville: Distribution System Modeling and Water Quality Management/Lewisville TX.Conducted
distribution system hydraulic and water quality modeling to determine system water age and water quality in pipes and
3 storage tanks. Developed unidirectional flushing program,elevated storage tank modeling and chlorine booster stations.
FORT WORTH
8
PARCADIS Wholesale Wastewater Cost of Service and Rate Study
Education
BA Economics University of Northern Isaiah Barnes
Colorado 2003 Financial
MBA Accounting and Finance Regis
University 2007 Ms. Barnes specializes in financial modeling and long-range planning,cost of
Years of Experience service analysis, and rate design for water and wastewater municipal utilities. In
Total-s addition, she has regularly conducts water,wastewater, and stormwater rates and
impact fee surveys. Prior to joining Arcadis, Ms. Rounds worked with JP Morgan's
Retirement Planning Services group where she was responsible for managing
client investment portfolios and private investment strategies. She brings with her a
solid background in financial analysis and economic theory.
Detailed Experience
City of Key West: General Fund Impact Fee Study/Key West FL.Completed an impact fee study for the City of Key
West to calculate the maximum supportable cost-justified impact fees to help the City recoup the cost of community
facilities and infrastructure and pay for its expansion.The study included evaluation of the City's existing impact fees
for sewer,solid waste and transportation, as well as development of new impact fees for fire rescue, law enforcement,
parks and recreation and stormwater.
Town of Fountain Hills: Development Fee Study I Fountain Hills AZ. Created model to determine the maximum
allowable development fees for seven town services,including streets,police,and fire and emergency services. Used
three different methods to calculate the recommended development fees. Prepared a detailed report to summarize
the study findings and present the recommended development fees. Researched current fees from neighboring
communities to prepare a fee survey comparing the town's current and recommended fees with the fees of other
communities in the area.
City of Fort Worth: Preliminary Rate Study I Fort Worth TX. Analyzed data from Texas utilities to determine impact
of various degrees of outside watering restrictions on water production,utility revenues,and rates. Study also included
recommending cost allocations and rate structures to improve revenue stability using defensible methodology.
City of Laramie:Water and Wastewater Cost of Service Study I Laramie WY.Lead analyst in developing a 10-year
financial plan and conducting cost-of-service analysis for both utilities. Designed five years of water and wastewater
rates and assisted the City in moving from a uniform water rate to an increasing block water rate structure. Used
industry wide benchmarks in analysis of 0&M and pipes repair and replacement.
Moulton Niguel Water District: Budget-based Rate Strudy and Financial Planning/CA. Implemented a new water
budget rate design for its potable water and reuse customers.ARCADIS assisted the district in evaluating alternative
rate frameworks and presented the results to the executive management and board of directors.ARCADIS developed a
conservation impact model to allow the district to better understand the implications of proposed rate designs.As part of
the project team,ARCADIS participated in the district's management meetings for the implementation of the rate design.
City of Northglenn:Water and Wastewater Study I Northglenn CO.Lead analyst in developing a 10-year financial
plan for the City's water and wastewater services. Conducted a cost-of-service study to identify and appropriately assign
water and wastewater costs to each customer class served by the City. Rate design based on the results of the cost-of-
service analysis. Evaluated connection fees to promote new growth that will pay its proportionate share of the facilities.
City of Rio Rancho:Water and Wastewater Rate Study/Rio Rancho NM. Lead analyst in water and wastewater
rate study that included the following: 1)5-year financial plan that assists the City in funding future needs; 2)cost
of service analysis; 3)development of rates for both utilities; and 4)delivery of a financial and rate planning model.
Assisted in the City's last three financial plan updates.
FO T WORTH
9
ARCADISWholesale Wastewater Cost of Service and Rate Study
Education
BS Information Systems Technology Shireen Abdullah
-University of Houston 2003 Financial
MBA-University of Houston 2006
Years of Experience Ms.Abdullah is a Senior Financial Consultant with 10 years of experience in
Total-10 developing financial strategies, increasing efficiency, and creating business
solutions within public and private sector. Her experience also includes serving as
the Finance Director for a small Texas municipality.
Detailed Experience
Oklahoma City Water Utilities Trust:Water and Wastewater Cost of Service, Rate Design and Financial
Planning Services I Oklahoma City OK.Analyzing customer billing and financial data to determine test year revenue
requirements.Allocating O&M and capital costs to functional categories and rate components to determine customer
class cost of service. Study includes transitional rate design and several stakeholder presentations.
City of Tempe:Water and Wastewater Cost of Service Rate Study/Tempe AZ. Completing a cost of service and
rate update for water and wastewater. Study includes analysis of multiple financial planning scenarios and transitional
rate design.
City of Tempe:Water and Wastewater Development Impact Fee Study I Tempe AZ.Completing a study to update
- the water and wastewater development impact fees to comply with the new Arizona development fee statute. Study
includes Land Use Assumptions and Infrastructure Improvement Plan,as well as required public hearings.
City of Dayton: Cost of Service Analysis/Dayton OH. Created baseline and optimized capital improvements plan to
determine revenue requirements and subsequent rate increases in each scenario.
Ross County Water Company: Water Cost of Service Rate Study/Chillicothe OH.Created bill frequency analysis
and prepared revenue from existing rates by meter size to determine usage trends and recommendation for new
customer classes. Study includes rate analysis and design as well as presentation to RCWC Board and training for
staff.
City of Arlington:Water and Wastewater Rate Study/Arlington TX. Reviewed financial model to address client
concerns regarding rate increase forecast. Study includes rate design and wholesale contract review.
Del-Co Water Company: Rate Structure Evaluation/Delaware OH.Reviewed existing water consumption data along
with related rate codes and meter size to create usage by meter size and class. Study includes rate sufficiency analysis
and rate structure evaluation.
City of Wallis: Finance Director I Wallis TX.Monitored and controlled costs for new City Hall construction project and
produced monthly budget variance reports.Analyzed and presented monthly financial statements for City Council review
at Town Hall meetings. Prepared the City's annual operating and capital budget of$1 million in accordance with State
Statues and policies of City Council. Liaised with external auditors on annual audit and implemented recommendations
w
for tighter controls. Initiated monthly internal audits and analyzed financial accuracy of records to ensure legal
compliance. Performed city account activities including fixed asset accounting, payroll and accounts payable. Prepared
reports for the State of Texas on progress and compliance of public works grant and for citizens on city bonds. Created
ad hoc reports for ad valorem, sales tax, police, court and water&sewerage billing.
FORT WORTH
10
AARCADIS Wholesale Wastewater Cost of Service and Rate Study
C. Project Experience7t affi
Financial Services _
• .-.- .-
One of the most unique,value-adding aspects of Arcadis of the City of Fort Worth, as defined
a is our team of financial professionals who are exclusivelyGovernmentccounting
committed to financial consulting projects 100%of the Auditing Standards
time.They regularly advise clients on how to respond to
continually evolving challenges using practical,feasible
approaches to address issues in the context of their Successful Completion of Water and Wastewater Cost of Service and
unique organizations.Arcadis'financial consultants have Rate Design Studies,Impact Fee Studies,and Wholesale Cost ofWater Rate Studies
expertise in the following spectrum of financial services:
• Utility valuations 4 M
• Customized financial modeling and risk analyses E
• Capital improvement funding studies a j;; a o
• Impact fee/capital recovery fee analysesW m
NC 00
• Revenue bond feasibility and consulting engineer LL N
reports
X0r«
• Cost-of-service studies 3J, 3 o
• Rate and charge studies ✓ ✓ ✓ ✓ ✓
• Development and pricing of inter-jurisdictional ✓ ✓ ✓ ✓ ✓
agreements
• Optimization of utility financial functions - ✓ ✓ ✓ ✓ ✓
Rate and Charge Studies ✓ ✓ ° ✓
Rate and charge studies are needed by many municipal Fort Worth ✓ ✓ ✓ ✓ ✓ ✓
utilities as part of their ongoing financial planning El Paso ✓ ✓ ✓ ✓ ✓
processes to meet revenue requirements, maintain Arlington ✓ ✓ ✓
competitive rates and existing level of service and to Lubbock ✓ ✓ ✓
manage debt.
Arcadis has provided these studies for a wide variety of Irving
utilities, including:
(CIP), as well as the funding needs associated with
• Preliminary cost identification maintaining aging infrastructure to maintain the existing
• Cost categorization level of service.
• Cost allocation to customer classes Utility Valuation Analysis
Combining our understanding of utility operations and
maintenance and capital improvement programs affords Utility asset valuations are completed for a variety of
Arcadis the unique ability to provide valuable insights into reasons, including supporting system acquisition,sale or,
rate and fee structures and cost-of-service categorization transfer,developing one-time capital recovery or impact
and allocation that other firms often overlook. fees and evaluating renewal and replacement obligations
or financial planning reserve requirements.Arcadis
Accurate budgets and the equitable allocation of capital has provided similar services to utilities throughout the
costs are the centerpieces of creating a sustainable utility. nation.
Arcadis has assisted numerous utilities to do just that.
Our rich engineering history combined with our financial
expertise make Arcadis uniquely qualified to support our
clients in developing a budget that supports the projected
capital funding needs of a capital improvement plan
FO T WORTH
11
ARVADIS Wholesale Wastewater Cost of Service and Rate Study
Relevant Project Experience
Arcadis' Business Advisory group was created to focus on the unique management,financial, organizational and
information technology(IT) needs of our clients. It has been our experience that municipalities in the southwestern U.S.
possess unique needs,therefore, our local business advisory consultants have become adept at advising these clients
on how to respond to continually evolving local challenges using the most practical,feasible approaches to address
issues in the context of their unique organizations.
Arcadis professionals have completed over 200 financial studies for utilities in the last five years. Our experience with
these municipal utilities clearly demonstrates our success with these services for our clients like the City.
The proposed Arcadis project team has extensive experience working with city agencies and municipal utilities in Texas.
In fact, our team has worked with utilities in 13 of the 15 largest cities in Texas, including financial services projects for
nine,which were managed by Jennifer Ivey(listed by population in the adjacent table).
Y The project descriptions we have included on the following pages are examples of relevant projects we have completed
recently with a similar scope of services to those requested in the City's RFP.
Arcadis was retained by the City of Fort Worth to calculate wholesale
water rates for 2006.We performed a cost of service study using
the utility basis approach to determine the revenue requirements for
wholesale water and recommend wholesale water rates for 2006.
Arcadis also completed the 2011 and 2014 wholesale water cost of
service rate study.
Fort Worth retained Arcadis again in 2007 and 2010 to perform
a wholesale wastewater cost of service rate study. Similar to the
wholesale water rate study,we used the utility basis approach to
calculate the wholesale wastewater rates for 2008 and 2011.
Arcadis assisted Fort Worth with an update of its water and wastewater Reference:
Skipper Shook
impact fees and development of reclaimed water rates.As part of the Utility Rate Analyst
Impact Fee Study,Arcadis estimated the City's Land Use Assumptions
and used these to determine the Capital Improvement Plan costs Phone:817.392.8402
eligible for inclusion in the impact fee calculations.This study was Fax: 817.392.8195
completed in accordance with Chapter 395 of the State of Texas Local Key Project Staff.
Government Code and included a Public Information Program.The
updated impact fees were adopted by City Council in June 2009. • Jennifer Ivey, PE
Arcadis also helped Fort Worth develop reclaimed water rates and • Randy McIntyre, PE
negotiate contracts with its potential reclaimed water customers.We Project Cost:$258,800
created a model to project capital and operating costs for the startup Project Features:
reclaimed water system.We evaluated several alternatives and
considered the costs and benefits of each to recommend the most • Wholesale cost of service rate
appropriate reclaimed water rate structure for Fort Worth's system. study
In 2013,Arcadis assisted Fort Worth with a water rate study to • Stakeholder meeting
project the impact on revenue due to stricter water conservation presentations
initiatives, specifically additional watering restrictions.We also • Update of wastewater allocation
reviewed current cost of service allocations and rate structure to make factors
recommendations that will improve the utility's revenue stability.
FO T WORTH
�. 12
IRE
GO
04ARCADIS Wholesale Wastewater Cost of Service and Rate Study
a
rThe of Irving provides water and wastewater service to over
40,000 customers in the Dallas-Fort Worth Metroplex. In 2007,
Arcadis performed a comprehensive water and wastewater rate ! _
design and cost-of-service study.As part of the study,our financial
professionals customized our dynamic eFORECAST model to
provide the City with a 10-year financial plan for the water and
wastewater utilities. During the study,Arcadis worked closely with
City management and staff to develop the 10-year financial plan,
determine the revenue increases required for each utility,design _
W water and wastewater rates for the next five years and calculate the
impacts of the proposed rates on typical customers.Arcadis prepared
a detailed report summarizing the analysis and results of the study. Reference:
In addition,Arcadis supported City and utility management in David Cardenas
presenting the study findings and proposed rates to the City Council Business Manager
for approval. Finally,we trained staff to use the eFORECAST model Phone: 972.721.2637
and provided a user's manual for future financial analyses. Since Key Project Staff.
the completion of this study, utility staff has successfully updated the • Jennifer Ivey, PE
eFORECAST model to develop water and wastewater rates. In a . Randy McIntyre, PE
follow-on project,Arcadis assisted the City with development of cost- 0 Shireen Abdullah
based reclaimed water rates to be implemented upon startup of their
Isalah Barnes
reclaimed water system.
Project Features:
• eFORECAST model
• Cost of service analysis
• Stakeholder presentations
FORT WORTH
13
Wholesale Wastewater Cost of Service and Rate Study
ArlingtonLocal Project Team with Relevant and Proven Experience that will Benefit this Project
City of .- • - •
Arcadis completed a water and wastewater cost of service rate study for AWU.
The study included a 10-year financial plan,for which we fully developed
two capital financing scenarios, cost of service analysis and development of
the following three 5-year rate alternatives for each of the two financial plan
scenarios:
-s • Existing rate structure
• Cost-of-service rates 0-1 lime
• Transition to cost of service rates by Year 5 Reference:
Arcadis customized the model for AWU and provided model training to AWU Medria Browhow
staff upon completion of the study in April 2013. Our scope of work also Financial Administrator
included evaluations of adding wholesale customer cities, funding initiatives Phone: 817.459.6810
to improve watershed protection and irrigation improvements,a report Key Project Staff.,
summarizing the study assumptions,findings and recommendations and • Jennifer Ivey, PE
presentations to City Council and other stakeholders. • Randy McIntyre, PE
• Shireen Abdullah
Project Features:
• eFORECAST model
• Transitional rates
• Future wholesale rates
4
1
FORT WORTH
�. 14 ��
ARCADESWholesale Wastewater Cost of Service and Rate Study
F
�r
Arcadis performed a water and wastewater cost of service rate and impact
fee study for the City of Houston with the goal of assessing the adequacy and
equitability of the rates and fees.As part of the study,we prepared a ten-year
financial plan to determine the revenue requirements for each year of the
planning period.We allocated the revenue requirements among functional
categories,customer service characteristics and customer classes. Using
the results of the study,we designed cost-based rates to recover sufficient
revenues.
Reference:
We also calculated the maximum allowable impact fees for water and Katheryn Bechtold
wastewater in accordance with Texas Local Government Code Chapter Executive Staff Analyst
395.We developed a Land Use Assumptions plan using data from the City Phone:832.395.2578
�* Planning Department and service area maps from the Public Works and
Engineering (PWE) Department.Working with PWE staff,we identified Key Project Staff:
Capital Improvement Plan (CIP) projects eligible for inclusion in the impact fee • Jennifer Ivey, PE
calculation. • Shireen Abdullah
Since completion of the 2009 rate study,Arcadis was engaged by the City to Project Features:
enhance the cost of service model and update the cost of service analysis. . eFORECAST model
We are currently working with the City to review the most recent update of the
• Wholesale rates
model,which was completed by CUS staff.
• Impact of conservation on
revenue
FORT WORTH
15
rt
ARCIaDIS Wholesale Wastewater Cost of Service and Rate Study
-
Arcadis was retained by the Oklahoma City Water Utilities Trust(OCWUT)
to complete a cost of service analysis and rate design for its water and
wastewater utilities. The objective of the study is to evaluate alternative pricing
plans,which include water and wastewater service charges and system
development charges,and determine the optimal pricing plan for OCWUT.The
recommended pricing plan should promote equity among various customer
types, recover sufficient revenue to meet annual revenue requirements and
meet all financial obligations of OCWUT, including a debt service coverage
ratio of 2.0. Reference:
Marsha Slaughter
Arcadis used data provided by OCWUT to determine the annual net revenue Director
requirements for the ten-year study period.We also analyzed historical billing phone:405.297.2833
data to identify groups of customers with similar usage characteristics to
consider for customer classes.We completed a cost of service analysis to Key Project Staff:
allocate the revenue requirements to appropriate functions, rate components • Jennifer Ivey, PE
and customer classes. Once we determined cost of service for each customer • Randy McIntyre, PE
class,we developed rates to recover the class cost of service through each . Richard Campbell
alternative pricing plan.Arcadis evaluated the alternative pricing plans using
evaluation criteria ranked by the OCWUT Board of Trustees to determine • Shireen Abdullah
which pricing plan is optimal for OCWUT. • Isalah Barnes
Once we identified a recommended pricing plan,Arcadis prepared a study Project Features:
report summarizing the analysis process, evaluation of alternative pricing • eFORECAST model
plans,study findings and recommendation.We presented the study findings . Wholesale rates
and recommendations to the OCWUT Board of Trustees,the McGee Creek
Authority,City of Oklahoma City management, City Council wholesale • Stakeholder presentations
customers and other stakeholders.
R
FORT WORTH
w 16
PARCADIS Wholesale Wastewater Cost of Service and Rate Study
Legal • Litigation
/aRD1S aac�m.-..
�rltaea�
Updated:04 2015
The follovdng is a Summary of all litigation for the preceding three years.Such claims aro disputed and not reasonable expected to be adven»ly determined,
applicable insurance is available,and/or such claims are not reasonably expected to materially impact the financlat condition or the operations of Arcadia.
r
Litigation Three Year History: ARCADIS U.S.,Inc.and all affiliates
ype aim uton
Plaintiff Arcis US,Inc. Date Filed Nature of Incident General Liao ry , Jufi diction 1)22j Diamwat
Defendant Employment or 3)Resolved/Settled
Prof Liablityl 41 Jdom,nt
isionary Integration Dec 15 Breach of Contract Douglas Cnty,CO
Professionals Arcadia US,Inc. Alb ed non- ant for servcas arformed g 1
a epos mi y mem ars sue on props y a Mas
Oct-15 contaminated by toxic metals.Allege.•number of delendantn,Includbg Arcadia Prof.LIab6My USDC-ED Kentucky
Bradb Sloven Ha s Arcaids US,Inc. are responsible. 1
aonary a me n SeP-75 Breach of Contract H11W..ugh Cnty.IL
Professionals Arcadia US,Inc. Alk ed non-a enl for services ertormed dlamissad and refiled in Colorado 2
roup an ens a c aim or con ion agAins rca is an room un a ng
Cit of Chca o Arcadia US,Inc. Sep•15 claim a ainst client for ne f enc, u Prof LlebBly Cook Cnty,L 1
Yonkers Contracting v. Arcadia US and GP-15 ac or c arm s9sms c nn an su con ao rs r me a encs an Prof Liability Westchester Cnty, 1
Malcolm Punta.Inc. dian,tions of the ro'ect NY
uono, n on
AmodioJul-15 arsons in u ue to ve icle co lision uto Middlesex Cn NJ 1
Rodriguez,Antonio Arcadia US Incn Jul-15 Personal injury to employee of 3rd party contractor at the project site General Liabihty Middlesex Cnty,NJ 1
Enviro-E ui men)Inc. Arcadia US Jul-15 Breach of rental a reemant-collection Breach of Contract Wake Cnt NC 3
Jun-15 aking o prop,y an reverse con emna n ue o oca ono sever pump Breach of Contract Wake Cnty,NC
Leo Baxter Honne utt Arcadia US station behind leintiffs'home 1
Breach of contract claim against client and negligence against Arcadis related to
Interstate Home Loan Arcadia US Mey-13etmarrmnt Prof.Liabili Baton Rou e,LA 1
Wilson,Gilberto Aroadis US Feb-15 Personal injury due to vehicle collision Breach of Contract Suffolk Cnry,NY 1
Friedsuer,Paul Rostan Dec-14 Personal Injury/death of 3rd partyconatruction contractor worker near project site. Auto Kmga Cnty,NY 1
Induchem Services,Inc. Arcadia US Dec-14 Alk ed non-a ant for Services performed General l_l illy Monmouth Cnty,NJ 3
Meiners Theodore RISE Alaska Se-14 Wron death claim related to Anchors a Alaska escalator incident Breach of Contract Son Juan P 1
Beauchamp,
Arthur Malcom Pirnie Aug-14 Class action directed at
contractors and others allegedly providing Services Go-.[Lubllly Anchorage,AK 1
Arca is US iib all tow NeMark Watershed Conservation Development Co oratbn
Gane Julian Malcolm Pirm. Au-14 Porsonal in'u b 3rd art contractor Morkar et theproject He. General Liabili Esaez C 1
Smith Jen Malcolm Pirnk Au-14 Personal m u to 3rd artconbactor Mocker at the protectoile. General Liabilhv Kino.Chtv,NY 1
Jeffrey Marcus Gray Aroadis US Jul-14 Alleged violation of Florida Statute Chapter 119 FOIA request Breach of Contract Jefferson Cnty,CO 3
Ledouz Arcadia US Mar-14 Personal injury to 3rd party contractor Morker at we project site. General Liability Duval Cnty,FL 2
1120 Club The Rlae Group Feb-14 General contractor and all subs(RISE)sued because allegedly project didn't General Liability Hampden Cnly.MA 1
comply Wth the contract and vas defective
Maloney,James Malcolm Ptrnle Feb-14 Personal injury to 3rd parry contactor worker at the project site. General Liability Cook Cnty,IL 1
Baptista,Scott Malcolm Pirnk Dec-13 Personal injury to 3rd party contractor worker at the project site. General Liability Rockland Cnty,NY 1
Hussey,Michael Malcolm Pirnie Dec-13 Personal injury to 3rd party contractor worker at the project site General Liability Kings Cnty,NY 1
Solan,Mark Malcolm Pirnk Nov-13 Personal Injury to 3rd party contractor worker at the project site. General Liability Bronx Cnty,NY 1
Bahumes.George Arcadis US Nov-13 Personal injury to 3rd party contractor worker at Na project site. General Liability Bronx Cnty,NY 1
Allen,Paul/Sauk Village Aroadis US Nov-13 Class action involving propertydamage for alleged groundwater contamination by General Liability Cook Cnty,IL 1
client and others.
Taimi Construction Arcadia US Nov-13 Contractor claim a ainst subcontractors in suit with client for defective work. Prof.Liabilitv Cook Cn IL 3
3rd party against several subndemnity and cc incontractors alleging breach o(cont act,negligence, Negligence/Breach Los Angeles Cnty. 2
DR.Horton Arcadk US Oct-13
of Contract
Client's subcontractor filed breach of contract Claim for failure to pay for as,-.
Heatcool RISE Ag-13 Breach of Contract Cook Cnty,IL 2
Savlas Pana iotls Malcolm Pirnie Jul-13 Personal in'u to 3rd artcontractor worker at the ro'ct site. General Llabila Bronx Cnt NY 1
kba
Ar Ra and Malcolm Pimie Jun-13 Personal in u to 3rd artcontractor works at the ro'ct Site. General Llabil0 Bronx Cnl NY 1
Ramondetta Jose h Malcolm Pirnie Jun•13 Personal injuryto 3rd artcontractor Mocker at the ro'ct also General Llablit Queens Cnt NY 1
Sauer James Malcolm Pimie n-13 Personal iniury to 3rd artcontractor worker at the ro'ct ska. General Llabli Bronx Cn NY 1
More Stop Inc. Arcadia US Jun-13 Pro a vmer aIle tl demo asaociatad with remediation activi Broach of Contrast Wayne Cnl MI 3
Purv,S ArcadMalc ia PS Mrnk, ay.13 Empbym,nt related claim by tormer recruiter alleging breach of contract Employment Yob Cnty,CA 3
inclnnati Insuran
Arcadia US Apr-13 Ins rance com an for the ntractor ale des'n u d ams s P f.Li bili) Lucas Cn OH 1 3
Legal and Disciplinary Action
The table above presents the legal and disciplinary
actions taken against the firm by any regulatory bodies or
professional organizations over the past three years, and
the resolutions for each case.
To the best of Arcadis U.S., Inc.'s knowledge, no
disciplinary action has been taken or is pending against
the firm in the past three years by any regulatory body or
professional organization.
FORT WORTH
AARCADIS Wholesale Wastewater Cost of Service and Rate Study
ExperienceCity of Fort Worth
The following table presents all engagements performed by Arcadis for the City over the past three
years.
Projectof • Date
Biosolids Dewatering and Odor Study Engineering 2015
Preliminary Rate Study Financial 2013
Wholesale Water COS and Rate Study Financial 2014
FORT WORTH
18 __
ARVAQIS Wholesale Wastewater Cost of Service and Rate Study
I
Schedule of Professional Fees and Expenses
for the Wholesale Wastewater Cost of Service and Rate Study
100% Quoted rates as percent of standard rates
Standard Quoted
Hourly Hourly Number of Hours per Grand
Title Hours Rates Rates Total Meetings Meeting Totals
Project QA/QC 8 $275 $275 $2,200
Project Manager 78 $275 $275 $21,450 4 4
Financial Consultant 92 $158 $158 $14,536
Senior Technical Advisor 4 $275 $275 $1,100
Support Staff 8 $138 $138 $1,104
Subtotal 1 202 $40,390
Out-of-pocket Expenses
Travel
Other
Total all-inclusive maximum price for rate study $40,390
FORT WORTH
= 19 ��
SECRETARY CERTIFICATE
I, James M. Donahue, Secretary of Arcadis U.S., Inc. (the "Corporation"), do hereby
certify and attest that the Corporation, in accordance with the Bylaws of the Corporation,
Resolution of the Board of Directors and delegation of the Chief Executive Officer, has
duly authorized and directed, Jennifer Ivey, in her capacity as Vice President of Arcadis
U.S., Inc., to execute and sign, the proposal for the City of Fort Worth, Texas;
Wholesale Wastewater Cost of Service and Rate Study on behalf of Arcadis U.S., Inc.
and to affix the corporate seal on such documents, and her signature shall be legal and
binding upon the Corporation.
ATTEST: J//vh/
Name: Af&6i hr b
Title: Corporate Secretary
Arcadis U.S., Inc.
STATE OF Colorado )
ss.
COUNTY OF )
bw5s
Personally appeared James M. Donahue, Secretary of Arcadis U.S., Inc. signer
and sealer of the forgoing instrument, who, being duly authorized, acknowledged the
same to be his fee act and deed and the free act and deed of said Corporation before
me.
KAYTE J0 GERVVIG tWotary Public
NOTARY PUBLIC
STATE OF COLORADO ' 20J9NOTARY IDN 2007036500 2
y Commission expires
saklis�AM