HomeMy WebLinkAboutContract 48978 Xr
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STATE OF TEXAS § �` �' CONTRACT NO, L!�� jk
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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 Richard
Campbell,its duly authorized Associate Vice President.
WHEREAS, the City desires to perform a Wholesale Water 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 herein in accordance with standard utility
rate-setting practices and policies.
EOFFIcIAL RECCRO
C II-TARP
RTH,TX
SECTION 2.
SCOPE OF SERVICES
The Consultant shall perform a Wholesale Water System Cost of Service and Rate Study for the
fiscal year beginning October 1,2017.
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 water 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 17,2017 Preliminary Cost of Service and Rates Report;
6. June 7,2017 1st Draft Cost of Service and Rates Report; 7. June 29, 2017 Review Final
Draft Cost of Service and Rates Report; and
8. July 13,2017 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
September 30,2017,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 $38,149.00. 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, Richard Campbell, is available to
ensure completion of the scope of services pursuant to this Agreement.
SECTION 13.
ASSIGNABILITY
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 Richard Campbell
Water Department Director Associate Vice President
City of Fort Worth Arcadis U.S.,Inc.
200 Texas Street 12400 Coit Road, Suite 1200
Fort Worth, Texas 76102 Dallas,Texas 75251
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 day of ,2017.
Ar City of Fort Worth, Texas:
oe* � � U1--_
arl olf Jay hapa
Sr.Vice President Assistant City
—)A%�6*-2 �-)o --/-?
Date Date
Approval Recommended
Witness hn Carman, Director
Fort Worth Water Department
APPROVED AS TO FORM AND
LEGALITY:
1
Uk -fi,Alx�
F O..�'
C sta . Lopez-Re olds
' enior Assistant City Attorney
U `= TTEST:
TEXAS
ary ser
l'�� 1Vg ori Y 17IUIRhD City S retary
By signing I acknowledge that I am the person
responsible for the monitoring and administration of
OFFICIAL RECORD
IL°I'. �lr'R 1 ,TX
this contract, including ensuring all performance
and repo . . g requirements.
_ 2
obe Shook
Name of Employee
Senior Utility Rate Analyst
Title
Exhibit A
Consultant's Response to RFP
FORT WORTH COPY
PROPOSAL
Wholesale Water Cost-of-Service and Rate Study
7,77 �r
�'�►ARCAD IS Design&Gonsuttancy
fornaturaland
built assets
ARCAD I S Arcadis U.S.,Inc.
12400 Coit Road,Suite 1200
January 27, 2017 Dallas,Texas 75251
Tel 972 934 3711
Skipper Shook, Senior Utility Rate Analyst Fax 972 934 3662
Fort Worth Water Department www.areadis.com
200 Texas Street, 2nd Floor
Fort Worth, Texas 76102
Subject:
Proposal for Wholesale Water 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:
History of Experience with Previous Water Cost-of-Service and Rate Studies—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 the schedules for these past studies, as well as aggressive schedules for
numerous other utilities. Specifically, our project manager, Richard Campbell, worked on the
recent wastewater cost-of-service and rate study, as did our financial analyst, Shireen Abdullah.
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. We will use this knowledge to provide
the City of Forth Worth (City)with the same expertise that we have provided on previous projects.
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 as we have in Houston, Brownsville, Dallas, and other Texas cities.
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) 934-3711 or at richard.campbell@arcadis.com.
Sincerely,
Arcadis U.S., Inc.
R -,�, - c6-�
Richard Campbell
Project Manager
/aRCADIS Wholesale Water Cost-of-Service and Rate Study
Firm Description proceedings), capital financing analyses, economic
Arcadis is an international leader in the fields of feasibility studies, and strategic and business planning.
infrastructure,water, buildings and environment Arcadis staff members hold leadership roles in and have
with our multidisciplinary staff that provides design, provided expert assistance to leading organizations such
engineering and management services to public and as the AWWA,Water Research Foundation (formerly
private clients around the globe. For 128 years,Arcadis AwwaRF),Water Environment Research Foundation
has been designing the human habitat, setting industry (WERF), and WEF, in developing best practice
standards with patented technologies and published methodologies for the municipal community. Several
works. members of our Financial Services group are primary
authors of industry texts regarding issues facing municipal
Arcadis' Business Advisory practice focuses on the utilities. These professionals have authored chapters in
financial, management, organizational, and information related publications, conducted industry polls, and delivered
technology needs of municipalities and public utilities. informational and training workshops.
As a group within Arcadis,we have the resource Our financial consultants regularly give presentations at
support and technical engineering backing of a global regional and national conferences, including the AWWA/
engineering firm. Synergy between our business WEF Utility Management Conference. Our staff and clients
advisory consultants and our engineering experts consistently benefit from the up-to-date knowledge gained
brings depth and breadth of knowledge to our clients, and shared by our experts in all aspects of the water
so that clients receive the highest-quality expertise and environment field.
project deliverables.
Our experts have provided financial services to most
of the major municipalities in Texas, including the City Arcadis'Fort Worth and Dallas offices have been
of Fort Worth,and throughout the country. Arcadis providing planning, design and consulting services to
consultants advise clients on how to respond to North Texas municipalities and utilities for over 20 years.
continually evolving challenges using practical, feasible We have completed and continue to provide successful
approaches to address issues in the context of their projects for the City.
unique organizations. We provide enduring solutions
for our communities with a concentration on the
environment.
Size of Firm
Lubbock
Our Business Advisory practice includes over 200
•Dallas
professionals whose experience and dedication help C El Paso Lufkin
clients achieve their most important utility management • Fort Worth
p Y 9 Midland
goals and objectives. With 27,000 employees Austin(2)
worldwide,Arcadis has an extensive network Houston Nederland
supported by strong local market positions to provide San Antonio
support to your study. Laredo Corpus Christi
Industry Leadership
Our Project Manager, Mr. Rich Campbell, has 29 years
of experience in the full range of utility finance issues,
including wholesale and retail ratemaking, revenue
bond financial feasibility reports, valuation studies for Arcadis Texas Office Locations
acquisitions and mergers(including condemnation FORT WORTH
ARCADES Wholesale Water Cost-of-Service and Rate Study
Organizational Chart
By selecting Arcadis, the Fort Worth Water Department Shireen Abdidlah" -Financial Analyst
(Department)will receive a carefully selected team Location:Dallas, TX
of professionals who not only possess relevant local Education:MBA Finance University of Houston 2003
knowledge, but also offer our experience from previous Ms.Abdullah is a senior financial consultant with 14
cost-of-service and rate design completion with the years of experience in developing financial strategies,
Department. We are proposing a proven team with increasing efficiency, and creating business solutions
substantial experience working together on similar projects within the public and private sector. She has assisted
which provides significant benefit to the Department in with financial analysis for several rate and impact fee
terms of the management of the collective resources studies for municipalities, including Fort Worth, TX;
and the proven track record of successful project Houston, TX; San Antonio Water System, TX; City
implementation of this team. The organizational chart below of Tempe,AZ; and Oklahoma City Water Utilities
presents the Arcadis team. More information on team Trust, OK. She has made several presentations on
members can be found on the pages that follow. rate findings to your Wholesale Customers Advisory
FORT WORTH Committee (WCAC) and Subcommitee.
John Mastracchio, CFA - Quality Assurance/
Quality Control
Location:Clifton Park, NY
Education:MBA Business Administration Cornell
University 2001; MS Civil& Environmental Engineering
Richard Campbell John Mastracchio,CFA Clarkson University 1994; BA Physics SUNY Geneseo
1993
Mr. Mastracchio leads Arcadis'financial services
Shireen Abdullah practice. His experience includes financial planning,
revenue and cost studies, rate setting, utility valuations
Technical and Administrative Support and regionalization. Mr. Mastracchio routinely speaks
at national and regional utility conferences on the topics
of financial management and rate setting, has earned
A/B. Project Team Qualifications the Chartered Financial Analyst(CFA) designation,
Richard ( arnl,bell" -Project Manager and is also a professional engineer. He is a member
of several committees including the AWWA Finance,
Location:Dallas,TX Accounting &Management Controls Committee, the
Education:BS Electrical Engineering, University of CFA Institute, and the Water Environment Federation
Central Florida, 1992; United States Naval Nuclear (WEF) Utility Management Committee.
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,water,
wastewater, stormwater and reclaimed water utilities.
His experience encompasses the full range of utility
finance issues, including wholesale and retail ratemaking,
revenue bond financial feasibility reports, valuation studies
for acquisitions and mergers (including condemnation
proceedings), capital financing analyses, economic
feasibility studies, and strategic and business planning.
FORT WORTH
2 _� ✓
ARCADISWholesale Water Cost-of-Service and Rate Study
Education
BS Electrical Engineering,University
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—28 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/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 water/wastewater 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.
FORT WORTH
3
� ARCADES Wholesale Water 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 water/wastewater 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 W/WW 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, cost-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.
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ARCADIS Wholesale Water Cost-of-Service and Rate Study
Education
John Mastracchio,
MBA Business Administration
Cornell University 2001;MS Civil& Quality Assurance / Quality Control
Environmental Engineering Clarkson
University 1994;BA Physics SUNY Mr. Mastracchio is a management consultant and financial analyst specializing in
Geneseo 1993 providing management consulting services to public utilities. He also leads Red
Years of Experience Oak's financial consulting practice in the central United States. His experience
Total-23 includes completion of utility rate studies, cost-of-service evaluations, revenue
sufficiency evaluations, and financial support for mergers and acquisitions. In this
Certifications capacity, he provides advice to utilities regarding rate restructuring,the affordability
Chartered Financial Analyst of capital programs, capital financing strategies, and the valuation of utility assets.
He has provided professional consulting services to publicly and privately owned
drinking water,wastewater, storm water, and solid waste utilities, local, state, and
federal agencies, and other businesses and organizations.
Detailed Experience
Charlotte Mecklenburg Utilities: Water and Sewer Rate Study/Charlotte, NC. Project Manager for a study to
review the current water and sewer rate structure and develop rate structure alternatives that provide a best fit for
the community. The goals of the study were to: . Ensure a fair and equitable rate structure,which produces sufficient
revenues to meet Utilities' revenue requirements . Maintain Utilities'AAA bond rating .Address customer affordability
. Maintain a pricing structure that encourages water conservation . Implement a public involvement process to obtain
feedback regarding the rate structure from customers served by the utility Red Oak developed a financial model to be
used as a planning tool for establishing a financial plan and identifying future revenue requirements. Water and sewer
cost-of-service studies were completed to identify the cost responsibility of various customer classes and to examine
intraclass rate equity. In addition, an affordability analysis was completed to assess the impact of rate structure changes
on low income customers. Red Oak also facilitated a two-phased public input process.A stakeholder advisory group
was formed that consisted of representatives of residential customers in various neighborhoods across the service
areas, as well as business representatives from the community. During the first phase of the public input process,
several meetings were held with the stakeholder advisory group, general public, Utilities' leadership team, and the
Restructuring Government Committee of the Charlotte City Council to obtain feedback pertaining to the most important
criteria to consider when developing rate structure alternatives. These criteria included equity between customer
classes, revenue stability,water conservation, economic development, affordability, and ease of administration.
Westchester Joint Water Works: 2009 Water Rate Study/Mamaroneck, New York. Provided ongoing rate
consulting support to the WJWW since 2006. The WJWW supplies water on a retail basis to several member
municipalities, and it also sells water on a wholesale basis to several customers. Developed projections of rate revenue
requirements, completed cost-of-service studies to ensure costs allocated equitably to each of its customers, and
assisted the member municipalities in revising their rate structures.Also assisted the WJWW in developing annual
budgets over the past two budget cycles, and has also assisted the WJWW in revising it rate methodologies associated
with its wholesale water customers, changing from a location-specific cost-of-service approach to an average cost
approach.The results of these efforts have improved the fairness and equity of the water rates charged to WJWW's
customers.
City of Lancaster: Water Revenue Bond Issue/Lancaster,Ohio. Completed an Engineers Feasibility Report
to support the release of bond disclosure documentation for the issuance of$8 million in 2004 waterworks revenue
bonds. Subsequently completed a sewer rate study in 2006 consisting of projections of rate revenue requirements
considering various capital improvement programs, and growth scenarios, development of sewer rate and connection
fee recommendations, evaluation of customer affordability, and comparison of sewer rates in nearby communities.
FORT WORTH
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4' ARCADIS Wholesale Water Cost-of-Service and Rate Study
City of Newark: Sewer Rate Study/Newark, Ohio. Project Manager for a wastewater rate and charge study.
The project included an evaluation of the Citys rate structure, development of a nonproprietary rate model, detailed
analyses of customer costs, usage characteristics, and capital improvement program costs, and presentation of rate
recommendations to City Council. In addition, neighboring utility rate comparisons were completed to support the design
of the rate components.
Henrico County: Comprehensive Water and Sewer Rate Study/Richmond,Virginia. Completed a cost-of-service
evaluation and rate, fee, and charge study to assist Henrico County develop a sustainable financial management
plan, determine revenue requirements over the next ten years, and ensure equitable recovery of costs.The study also
consisted of completing an impact fee evaluation to ensure that growth pays for itself over the planning period. The
financial management plan was developed using an interactive forecast model that allowed alternative scenarios to
be easily evaluated. Connection fees, fire protection charges, and local facility fees were established by determining
the costs of providing these services and developing fees to equitably recover these costs from customers utilizing the
services. Rate, fee, and charge formulas were developed for the County's$80-million operating budget.
City of Columbus: Comprehensive Rate and Charge Analysis/Columbus, OH.Completed a cost-of-service
evaluation and rate, fee, and charge assessment to assist the City of Columbus generate sufficient revenues to pay
for upcoming water and sewer capital improvement and operation and maintenance programs. The project included
completing a cost-of-service evaluation to determine the cost responsibility of the citys customers, and a rate structure
evaluation to identify water and sewer rate structures that were closely aligned with the cost of providing service and
developing rate formulas for the city's future use. Based on the results of this study,the city changed its water rates
from a declining block structure to a"lifeline"rate and an inclining block structure for residential customers.The city
also implemented a separate charge to customers to pay for its upcoming $2.5 billion wet weather capital program. This
charge recovers the cost of the program based upon the impervious surface area of the citys customers. Presented
study results to city staff, city council, and other stakeholders using interactive financial modeling tools that were
developed for the client.
City of Grand Forks: Cost-of-Service Study/Grand Forks, ND. Completed a financial evaluation of the city's water,
wastewater, solid waste, and stormwater utilities.The evaluations were conducted to ensure that the costs associated
with planned capital infrastructure investment and the operations of each utility were allocated equitably to each
customer, class-based on its service requirements. Evaluated the financial affordability of capital improvement plans.
Developed cost allocation methodologies using sound engineering, financial, and rate-making practice. Developed
nonproprietary revenue adequacy models to provide the city with a basis for the evaluation of alternative rate structures
and to ensure that all of the appropriate costs of operating the utility were reflected in the rates. Completed a financial
evaluation of the city's water,wastewater, solid waste, and stormwater utilities. The evaluations were conducted to
ensure that the costs associated with planned capital infrastructure investment and the operations of each utility were
allocated equitably to each customer, class-based on its service requirements. Evaluated the financial affordability
of capital improvement plans. Developed cost allocation methodologies using sound engineering,financial, and rate-
making practice. Developed nonproprietary revenue adequacy models to provide the city with a basis for the evaluation
of alternative rate structures and to ensure that all of the appropriate costs of operating the utility were reflected in the
rates.
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ARCADISWholesale Water Cost-of-Service and Rate Study
Education
BS Information Systems Technology Shireen Abdullah
-University of Houston 2003
MBA-University of Houston 2006
Years of Experience Ms.Abdullah is a Senior Financial Consultant with 14 years of experience in
Total—14 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
City of Fort Worth: Wholesale Water and Wastewater Cost of Service and Rate Study/Fort Worth,TX.
Analysed operations, rate base and depreciation classified under the utility basis approach to determine the wholesale
revenue requirements. Input current test year data into the existing cost-of-service and rate model to determine the
recommended wholesale water rates for 2015 and wholesale wastewater rates for 2017. Designed volume and excess
charge rates based on usage and demand. Prepared detailed reports summarizing the results of each study and
presented study findings and proposed rates at several meetings with the Wholesale Water and Wastewater Advisory
Committee and Subcommittee.
City of Houston Department of Public Works and Engineering: Water and Wastewater Cost-of-Service Rate I
Impact Fee Study/Houston,TX. 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. Ensured water and wastewater impact fees were calculated in
accordance with Chapter 395 of the State of Texas Local Governmental Code. Coordinated Public Information Program
for approval of proposed impact fees. Follow on work included updating cost of service analysis using model from
original rate study.
City of Oklahoma City: Water and Wastewater Utilities Cost-of-Service, Rate Design, Impact Fees and
Associated Financial Planning/Oklahoma City, OK.Analysed customer billing and financial data to determine test
year revenue requirements using utility basis approach.Allocated operation and maintenance (O&M) and capital costs
to functional categories and rate components to determine customer class cost of service. Estimated multi-year revenue
from proposed water and wastewater impact fees using various methodologies. Study included transitional rate design
and several stakeholder presentations.
City of Arlington: Water and Wastewater Rate Study/Arlington TX. Reviewed financial model to address client
concerns regarding rate increase forecast. Evaluated class cost-of-service and compared to revenue under existing
rates. Prepared study report summarizing assumptions,findings and recommendations. Study included rate design and
wholesale contract review.
City of Irving: Water and Wastewater Cost Update/Irving,TX. Developed a five-year financial plan projecting
annual revenue requirements and adjustments. Compared cost of service to revenue under existing rates for each
customer class to determine required adjustments. Study included presentation to City Council and model training.
City of Farmington: Water and Wastewater Rate Study/Farmington, NM. Gathered operational, existing debt and
capital plan data to determine revenue requirements for the five-year study period. Produced cash flow projections for
the water utility and identified revenue adjustments required each year of the study period. Customer billing data was
utilized to project revenue recovery ratio and adjustments to base charges.Asset and depreciation data was also used
to adjust the projected repair and replacement fee to recover such costs. Study included presentation to Public Utility
Commission (PUC) and Council.
FORT WORTH
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ARCADESWholesale Water Cost-of-Service and Rate Study
C. Project Experience Utility Valuation Analysis
Utility asset valuations are completed for a variety of
Financial Services reasons, including supporting system acquisition, sale or
One of the most unique, value-adding aspects of Arcadis transfer, developing one-time capital recovery or impact
is our team of financial professionals who are exclusively fees and evaluating renewal and replacement obligations
committed to financial consulting projects 100% of the or financial planning reserve requirements.Arcadis has
time. They regularly advise clients on how to respond to provided similar services to utilities throughout the nation.
continually evolving challenges using practical,feasible
approaches to address issues in the context of their Relevant Project Experience
unique organizations.Arcadis'financial consultants have Arcadis professionals have completed more than
expertise in the following spectrum of financial services: 200 financial studies for utilities in the last five years.
• Utility valuations Our experience with these municipal utilities clearly
• Customized financial modeling and risk analyses demonstrates our success with these services for our
• Wholesale rate reviews clients like the City. The proposed Arcadis project team
• Capital improvement funding studies has extensive experience working with city agencies
• Impact fee/capital recovery fee analyses and municipal utilities in Texas. In fact, our team has
• Revenue bond feasibility reports worked with utilities in 13 of the 15 largest cities in Texas,
• Cost-of-service studies including financial services projects for nine, (listed by
• Rate and charge studies population in the adjacent table). The project descriptions
• Development and pricing of inter-jurisdictional we have included on the following pages are examples
agreements of relevant projects we have completed recently with a
• Optimization of utility financial functions similar scope of services to those requested in the City's
Rate and Charge Studies RFP.
Rate and charge studies are needed by many municipal successful Completion of similarprojects,in Texas.
utilities as part of their ongoing financial planning ���,�,
processes to meet revenue requirements, maintain
competitive rates and existing level of service and to
manage debt.Arcadis has provided these studies for a
wide variety of utilities, including:
• Preliminary cost identification
• Cost categorizationMunicipal Utility
• Cost allocation to customer classes Houston 0 0 •
Combining our understanding of utility operations and
San Antonio • • • •
maintenance and capital improvement programs affords
Arcadis the unique ability to provide valuable insights into Dallas
rate and fee structures and cost-of-service categorization Austin
and allocation that other firms often overlook.
• • • • •
Our rich engineering history combined with our financial Fort Worth
expertise make Arcadis uniquely qualified to support EI Paso
our clients in developing a budget that supports the Arlington
projected capital funding needs of a capital improvement
plan (CIP), as well as the funding needs associated with Lubbock
maintaining aging infrastructure to maintain the existing Irving
level of service.
FORT WORTH
8
., ARCADIS Wholesale Water Cost-of-Service and Rate Study
Local Project Team with Relevant and Proven Experience that will Benefit this Project
"'IT —"7171 92,
Arcadis was retained by the City of Fort Worth to calculate wholesale „a
water rates for 2006. We performed a cost-of-service study using
the utility basis approach to determine the revenue requirements for M�
wholesale water and recommend wholesale water rates for 2006. I
Arcadis also completed the 2011 and 2014 wholesale water cost-of-
service rate study.
i 1�I
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 Reference:
calculate the wholesale wastewater rates for 2008 and 2011. Skipper Shook
Arcadis assisted Fort Worth with an update of its water and wastewater Utility Rate Analyst
impact fees and development of reclaimed water rates.As part of the Phone: 817.392.8402
Impact Fee Study,Arcadis estimated the City's Land Use Assumptions Fax: 817.392.8195
and used these to determine the Capital Improvement Plan costs
eligible for inclusion in the impact fee calculations.This study was Key Project Staff.•
completed in accordance with Chapter 395 of the State of Texas Local • Richard Campbell
Government Code and included a Public Information Program. The . Shireen Abdullah
updated impact fees were adopted by City Council in June 2009.
Arcadis also helped Fort Worth develop reclaimed water rates and Project Features:
negotiate contracts with its potential reclaimed water customers. We o Wholesale cost-of-service rate
created a model to project capital and operating costs for the startup study
reclaimed water system. We evaluated several alternatives and • Stakeholder meeting
considered the costs and benefits of each to recommend the most presentations
appropriate reclaimed water rate structure for Fort Worth's system.
In 2013,Arcadis assisted Fort Worth with a water rate study to • Update of wastewater allocation
project the impact on revenue due to stricter water conservation factors
initiatives, specifically additional watering restrictions.We also
reviewed current cost-of-service allocations and rate structure to make
recommendations that will improve the utility's revenue stability.
Most recently,Arcadis provided financial services for the City's 2016
Wholesale Wastewater Cost-of-Service and Rate Study.
FOR` WORTH
9 ��
ARCADIS Wholesale Water Cost-of-Service and Rate Study
Local Project Team with Relevant and Proven Experience that will Benefit this Project
Icity rr
71 a
1Irving: 1W : M! .1 1 1
RELEVANT INFORMATION
M1 1,A IIS
The City 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 financials
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
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 • Shireen Abdullah
eFORECAST model to develop water and wastewater rates. In a
follow-on project,Arcadis assisted the City with development of cost- Project Features:
based reclaimed water rates to be implemented upon startup of their • eFORECAST model
reclaimed water system. • Cost-of-service analysis
In 2014,Arcadis performed an update of the water and wastwater • Stakeholder presentations
cost-of-service.The existing model and customer usage
characteristics were updated along with financial assumptions and
data.Arcadis proposed rate adjustments for each customer class.
Preliminary rate findings were discussed at related workshops.At
subsequent workshops,Arcadis provided model training and ongoing
support.
FORT WORTH
10
A ARCADIS Wholesale Water Cost-of-Service and Rate Study
Local Project Team with Relevant and Proven Experience that will Benefit this Project
rArliniton
p. ' ' ' ' •
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: ir�
• Existing rate structure
• Cost-of-service rates
• 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 • Shireen Abdullah
presentations to City Council and other stakeholders.
Project Features:
• eFORECAST model
• Transitional rates
• Future wholesale rates
FORT WORTH
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ARCADIS Wholesale Water Cost-of-Service and Rate Study
DepartmentLocal Project Team with Relevant and Proven Experience that will Benefit this Project
City of Houston
� : a - Impact.Ee&Study RELEVANT INFORMATION
m h4 �a�� m ,:� t ���,.T� titi ,
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.
We also calculated the maximum allowable impact fees for water and Reference:
wastewater in accordance with Texas Local Government Code Chapter 395. Katheryn Bechtold
We developed a Land Use Assumptions plan using data from the City Planning Executive Staff Analyst
Department and service area maps from the Public Works and Engineering Phone: 832.395.2578
(PWE) Department.Working with PWE staff,we identified Capital Improvement Key Project Staff.,
Plan (CIP) projects eligible for inclusion in the impact fee calculation. • Shireen Abdullah
Since completion of the 2009 rate study,Arcadis was engaged by the City
in 2014 to enhance the cost-of-service model and update the cost-of-service Project Features:
analysis.We are currently working with the City to review the most recent • eFORECAST model
update of the model,which was completed by CUS staff. • Wholesale rates
FORT WORTH
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ARCADES Wholesale Water Cost-of-Service and Rate Study
Local Project Team with Relevant and Proven Experience that will Benefit this Project
ahoma City Water Utilities Trust: Comprehensive Cost-of-Service and RE6tLA ORMATION
e Study NT INP
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 f>'
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 • Richard Campbell
and customer classes. Once we determined cost-of-service for each customer • Shireen Abdullah
class,we developed rates to recover the class cost-of-service through each
alternative pricing plan.Arcadis evaluated the alternative pricing plans using Project Features:
evaluation criteria ranked by the OCWUT Board of Trustees to determine • eFORECAST model
which pricing plan is optimal for OCWUT. • Wholesale rates
Once we identified a recommended pricing plan,Arcadis prepared a study • Stakeholder presentations
report summarizing the analysis process, evaluation of alternative pricing
plans, study findings and recommendation. We presented the study findings
and recommendations to the OCWUT Board of Trustees,the McGee Creek
Authority, City of Oklahoma City management, City Council wholesale
customers and other stakeholders.
D. 6-tiatement of kawiiialiuii
Arcadis confirms that our firm is independent of
the City of Fort Worth, as defined by the U.S.
General Accounting Office's Government Auditing
Standards (1988).
FORT WORTH
13
ARCADISWholesale Water Cost-of-Service and Rate Study
LegalAill
2. • Litigation
Being a multi-disciplined international consultant firm with a long history,Arcadis has had various state and/or
federal governmental entity investigations or citations pending at any given time. However,Arcadis has not been
assessed any penalties or been found in violation of any laws, rules or regulations enforced or administerted by any
state or federal governmental entity or agency that would affect our ability to fully perform the services required by the
City of Fort Worth.
The following is a summary of relevant litigation for the preceding five years.Such claims are disputed and not reasonable expected
to be adversely determined,applicable insurance is available,and/or such claims are not reasonably expected to materially impact
the financial condition or the operations of Arcadis.
Litigation Three Year History: Arcadis U.S.,Inc.and all affiliates
Nature of incident—
a ing of property and reverse condemnation due to location of sewer pump slahon
Kelly,Russell and Paula Arcadis US,Inc. Aug-16 adjacent to plaintiffs'home Prof.Liability Case Ongoing
Glenmonl Arlington Arcadis GBM,Inc., Client's Third Party claim for indemnification,contribution,equitable subrogation an Case Ongoing
Kendall,LLC (BHR,Inc.) Jul-16 negligence against Arcadis G&M(BHR,Inc.)in underlying claim against client for Prof.Liability
construction defect(Diamond,at al v.Glenmonl Adingtion,at al.)
Visionary ntegration Arcadis US,Inc. Deo-15 Breach of services agreement-collection Case Ongoing
Professionals Breach of Contract
Plaintiff alleges that family mem ers su ere a a i nesses on grope y a was
Bradley Steven Arcadis US,Inc. Oct-15 contaminated by toxic metals.Alleges a number of defendants,including Arcadis Case Ongoing
Hayes responsible. Prof.Liability
City of Chicago The Rise Group and Client's Third Party claim for contribution against Arcadis and Rise in undo ging
Arcadis US,Inc. Sep-15 claim against client for negligence(Young v.CTR) Prof.Liability Case Ongoing
Yonkers Contracting Arcadis US and Malcolm Sep-15 Breach of contract claim against client and others,including Arcadis and Malcolm Breach of Contract Case Ongoing
v.County of Pimie,Inc. Pimie related to delays and disruptions of project causing monetary damages
Westchester
Leo Baxter Honneycutl Arcadis US,Inc. Jun-15 Taking of property and reverse condemnation due to location of sewer pump station Prof.Liability Case Ongoing
behind plaintiffs'home
Interstate Home Mey-15 Breach of contract claim against client and negligence against Arcadis related to Dismissed
Loan Arcadis US,Inc, environmental easement Prof.Liability
1120 Club The Rise Group Feb-14 General contractor and all subs(RISE)sued because allegedly project didn't Breach of Contract Case Ongoing
comply with the contract and was defective
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.
ern for Award
Arcadis is not excluded, debarred or suspended from the federal government's SAM/ELPS.
FORT WORTH
14
V1ARCADIS Wholesale Water Cost-of-Service and Rate Study
4. City of •rt Worth Experience
The following table presents all engagements performed by Arcadis for the City over the past three
years.
Project Title Type of Engagement Date
Wholesale Wastewater Cost-of-Service and Rate Study Financial 2016
Biosolids Dewatering and Odor Study Engineering 2015
Preliminary Rate Study Financial 2013
Wholesale Water COS and Rate Study Financial 2014
FORT WORTH
15
1 ARCADIS Wholesale Water Cost-of-Service and Rate Study
for Services
Arcadis U.S., Inc.
Schedule of Professional Fees and Expenses
for the Wholesale Water Cost-of-Service and Rate Study
100% Quoted rates as percent of standard rates
Standard Quoted Hours
Hourly Hourly Numberof per
Title Hours Rates Rates Total Meetings Meeting Grand Totals
Project QA/QC 8 $275 $275 $2,200
Project Manager 75 $275 $275 $20,625 4 4
Financial Consultant 90 $158 $158 $14,220
Support Staff 8 $138 $138 $1,104
Subtotal 181 $38,149 $38,149
Out-of-Pocket Expenses
Travel
Other
Total All-inclusive Maximum Project Price $38,149
Richard Campbell, Project Manager, is entitled to represent the firm, empowered to submit the bid and authorized to
sign a contract with the City of Fort Worth.
FORT WORTH
16
04ARCADISfora
nturatand
built assets
Arcadis U.S., Inc.
12400 Coit Road, Suite 1200
Dallas, Texas 75251-2005
PH: 972 934 3711
FX: 972 934 3662
www.arcadis.com
i
i�
i
Exhibit B
Compensation Schedule of Hourly Rates
Standard Quoted Number Hours Grand
Title Hours Hourly Hourly Total of per Total
Rates Rates Meetings Meeting
Project QA/QC 8 $275.00 $275.00 $2,200.00
Project Manager 75 $275.00 $275.00 $20,625.00 4 4
Financial 90 $158.00 $158.00 $14,220.00
Consultant
Support Staff 8 $138.00 $138.00 $1,104.00
Subtotal 181 $38,149.00 $38,149.00
CERTIFICATE OF INTERESTED PARTIES FORM 1295
101`1
Complete Nos.1-4 and 6 it there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2017-171314
Arcadis U.S„ Inc.
Dallas,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 02/24/2017
being filed.
City of Fort Worth,TX Date Ack owledged:
r
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 services,goods,or other property to be provided under the contract.
BID-34737054
Wholesale Water Cost-of-Service and Rate Study
4
Nature of interest
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I Intermediary
5 Check only if there is NO Interested Party. O
X
6 AFFIDAVIT
I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct,
IN'Sky P&', CNARMAINE MARCELL RICNARDSON
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:? :�=Notary Public,State 2Texas
020
Comm, Expires 09.266.2020 �Q^•d � C
Notary ID 12018194
Signature of authorized agent of contracting business entity
AFFIX NOTARY STAMP/SEAL ABOVE
Sworn to and subscribed before me,by the said ,�V�(�q ?�(�,l I this the a 1 day of
20 to certify which,witness my hand and seal of office.
-Arjulllll-,�Pi Odvd, Cha.rmot-o . All. 2�Ghurdsuy-\
S gnature of officer adn nistering oath Printed name of officer administering oath Title of officer admifistering oath
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277