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HomeMy WebLinkAboutContract 52570-A3 CSC No.52570-A3 THIRD AMENDMENT TO CITY SECRETARY CONTRACT NO. 52570 WITH BURNS & MCDONNELL ENGINEERING COMPANY, INC This Third Amendment is entered into by and between the City of Fort Worth ("City"), a home rule municipal corporation situated in Tarrant, Denton, Parker and Wise counties, Texas, and Burns & McDonnell Engineering Company, Inc. ("Consultant"), a Missouri Company, acting by and through Scott Pasternak, it duly authorized Department Manager, each individually referred to as a "party" and collectively referred to as the "parties." WHEREAS, City and Consultant entered into an Agreement identified as Fort Worth City Secretary Contract No. 52570 on or about July 29, 2019; and WHEREAS, the purpose of the Agreement is for the provision of solid waste consulting service; and WHEREAS, on January 14, 2020,the parties executed the First Amendment to the Agreement to allow for expanded services, new term and a not to exceed amount of$470,900 (M&C-19-0397); and WHEREAS, on or about May 27, 2020,the parties executed the Second Amendment to extend the term of the Agreement to June 20, 2021; and WHEREAS,the parties now wish to amend the scope of work to include Task 10 as shown in the attachment. NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, the parties agree to amend the Agreement as follows: I. Scope of Services. The scope of work shall be amended to include Task 10 and to revise the Fee Schedule as shown in Exhibit A to this Third Amendment, which shall be incorporated herein. II. Other Terms and Conditions.All other terms and conditions of the Agreement shall remain the same. IN WITNESS WHEREOF,this Agreement shall be deemed fully executed as noted by the City Secretary. OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX CITY OF FORT WORTH BURNS & MCDONNELL ENGINEERING COMPANY, INC 111aA4G4' a Iwl scot-PAa m"c Valerie Washington(Jan 6,202114:57 CSjy Scott Pasternak(Jan 7,202107:40 CST) Valerie Washington Scott Pasternak Assistant City Manager Department Manager APPROVAL RECOMMENDED: go�"ef-tsma"o- Robert Smouse(Jan 5,202122:23 CST) Robert Smouse Assistant Director, Code Compliance Department APPROVED AS TO FORM AND LEGALITY: Chris—ha)?. Loyez-Reynolds Christa R.Lopez-Reynolds(Jan 6,2021 14:08 CST) Christa Lopez-Reynolds Senior Assistant City Attorney ,a�vnnn� ATTEST: pd�`FoRp�aa �,Os�O000c000�a� � � ��a 'A=d Mary J. Kayser �p,�o d City Secretary a OOOoOOOOOOoo /.yam Date Executed: Jan 7,2021 nEXASaAp M&C: Not Required CONTRACT COMPLIANCE MANAGER: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. ,70G1D R/ffelftd Joao Pimentel(Jan 5,2021 11:19 CST) Joao Pimentel Sr. Planner—Solid Waste Division OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX City of Fort Worth: Solid Waste Financial and Contractual Consulting Services This proposal is for Burns & McDonnell to assist the City of Fort Worth (City) with solid waste consulting services focused on evaluating the City's residential solid waste and recycling collection contract and developing a cost of service study that will provide a long-term financial plan for the City. Listed below are the key tasks to be accomplished by our project team during the conduct of this study. We have organized this scope of services into four phases: (1) Project Initiation and Management; (2) Cost of Service and Rate Design; (3) Residential Collection Contract Review; and (4) Report Preparation and Presentation. This proposal includes our scope of work and fee; a schedule will be developed once we understand the timing of the Notice to Proceed. Scope of Work Phase 1 Project Initiation &Management TASK 1A: INITIAL DATA REQUEST & REVIEW Following receipt of the Notice to Proceed, Burns& McDonnell will provide the City with a detailed preliminary data request that will encompass data needs for completing the study. The data request will itemize our needs for understanding the operational,technical, planning and financial considerations that must be addressed. An initial listing of data to be requested by phase followings: Applicable for all Phases Applicable City ordinances Solid waste management plan Waste characterization study Phase 2: Cost of Service and Rate Design: Copies of the ordinances,regulations,policies and agreements governing the current finances of the solid waste operation ► Supporting documentation used in the computation of all solid waste fee ► Historical solid waste fees available from the City ► Historical and current budgets ► Billing data Contracts and other inter-governmental agreements Personnel rosters ► Inventory of equipment Solid wastes revenue Reserve fund balances Phase 3:Residential Collection Contract Review Contracts and amendments with Waste Management This task also includes organization and preliminary analysis of all data received. We recognize that the City may not have all information requested readily available or may track information differently than requested. We will work with the appointed project manager to arrive at reasonable substitutes for the key data, if needed. I A5K 'I B: t5 I ABLIbM A r-r<UJLL; I I A5K rumor_ In order to get the best information possible and increase buy-in for the outcomes of this project, we recommend that the City establish a Project Task Force (PTF) to participate throughout the process. The PTF would ideally include 4—6 key representatives from diverse roles and levels of responsibility within the City. The PTF will participate in the kick-off meeting, help facilitate data collection, provide feedback on preliminary findings, and provide support to our project team throughout the project. By involving a variety of individuals with a wide range of skills and responsibilities, a complete picture of the solid waste system can be developed more quickly. The diverse experience and concerns of the participants will help identify problem areas and contribute meaningful input to the solutions. Full participation from the PTF members should also be expected to increase buy-in and will speed implementation of the project findings. TASK 1 C: KICK-OFF MEETING & PQOJECT MANAGEMEN'i Prior to commencing the study, members of the project team will conduct a kick-off conference call and then an on-site kick-off meeting with key City staff. The purpose of the initial conference call will be to plan for the kick-off meeting and site visit. At this kick-off meeting we will discuss the project work plan, key issues to be addressed, key findings from previous engagements as well as confirm the timing associated with the various project tasks. We will discuss our initial data request (as previously described)that we will have provided to the City staff 7 to 14 days prior to the kick-off meeting. Burns & McDonnell will provide the agenda and any handout materials at least two days in advance. During the meeting, we will also identify primary contacts for our project team and the City and establish protocol for the exchange of information and the resolution of issues that arise in the normal course of this engagement. To facilitate effective communication between project team members and the City throughout the course of this project, Burns & McDonnell will: Schedule and participate in periodic conference calls as needed to discuss project matters(as identified in the specific tasks of this Refine scope of work) = ► Provide periodic status updated via electronic format IF &Goals ► Be available for other communication(s)as needed Policies Pathways PHASE 1 DELIVERABLESFrKICK_OFF ► Preliminary data request MEETING ► Electronic copies of the kick-off meeting agenda,handouts,and F, Confirm , , follow-up summary Schedule F Information ► Participation of Burns&McDonnell project manager and key staff 11 Make IL 'A in conference call and on-site kick-off meeting Assignments L A The kick-of meeting will provide a forum for establishing clear communication for the project. Phase 2: Cost of Service &Rate Study A cost of service study provides a clear understanding of the operation's cost of providing service. By conducting this portion of the projects early on, we will be able to not only provide the calculate the cost of service for the current program, but will also be able to provide the City with an understanding of the financial impacts associated with changes that may occur to the collection contract and/or disposal and transfer programs. As needed, we will update the cost of service and rate study based on the analysis that will be completed during Phase 3, as well as based on the Long-Term Disposal Analysis. TASK 2A: CURRENT COST OF SERVICE ANALYSIS A"Test Year" is a common term in cost of service studies that refers to an adjusted fiscal year budget that is used as a basis for determining cost of service and setting rates. The Test Year should be representative of typical conditions, with adjustments for any unusual or one-time expenses. Any projected non-recurring expenses or revenues will be identified and incorporated into the financial forecast. Burns & McDonnell will work with the City to develop an accurate Test Year revenue requirement reflecting the revenue required to meet all operating and maintenance (0&M) costs, debt service (including coverage and reserve requirements), working capital requirements, and capital expenditures. The goal of this task will be to document the current full cost of the City's various solid waste services and to allocate these costs to the appropriate cost centers. As part of this task, Burns& McDonnell will: Review current and historical financial data collected as part of Task 1 Summarize and analyze the current solid waste fees Develop a revenue requirement for the"Test Year,"which includes,but not limited to,the following types of costs: o Contractual,operational and maintenance o General fund and administrative overhead o Capital equipment and facility costs(current and future needs) o Current and anticipated long-term liabilities and debt obligations o Working capital and reserve funds requirements ► Work with the City to define cost centers:Cost centers will be based on the primary services provided by the Code Compliance Department and will be refined based on input from City staff. A preliminary listing of cost centers may include:Garbage Collection,Yard Trimmings Collection,Recycling Collection,Recycling Processing,Drop- off Centers,Bulk Waste Collection,Cart Maintenance,Landfill,Education and Outreach,Household Chemicals/Electronics and Administration Work with the City to allocate test year costs to the cost centers in the cost allocation model Develop an infrastructure and vehicle/equipment replacement analysis to account for growth and replacement ► Assist the City in developing or modifying a cost allocation strategy that captures capital,debt,operations,and maintenance costs,as well as indirect costs(administration and overhead)for each of the targeted services Allocate cost centers to customer classes Determine billing units Calculate the cost of service For equipment and personnel that serve more than one function, we will assist City staff in the development of an appropriate strategy to allocate those costs among the programs being evaluated. It will be imperative to work closely with financial and operational personnel during the cost allocation process to confirm that all direct and indirect costs are apportioned in an appropriate and meaningful BURN S\MSDONNELL way among the programs being evaluated, which will be critical given the broad range of services and operations. TASK 2A DL_�IVERABLES ► Meeting with City staff No. A Test Year revenue requirement ► Calculation of the Test Year cost of service ► Conference call with City staff to discuss results of Task 2A TASK 2B: FORECASTED COS i OF SERVICE ANALYSIS, PROGRAM REVENUE STREAM ANALYSIS AND RATE DEVELOPMENT This task will include three primary objectives: (1) to develop a five-year forecast; (2) to determine current revenue generation and review billing methods; and (3) fee structure methodology and rate development. Five-Year Forecasted Cost of Service In addition to calculating the current cost of service for the Test Year, Burns & McDonnell will project the future cost of service for a five-year time frame and will allocate these costs to the appropriate cost centers. Burns & McDonnell will work in conjunction with the City to develop an accurate five-year revenue requirement and billing unit forecast. To develop the five-year revenue requirement for the City, Burns& McDonnell will examine historical budgets and audited financials and, utilizing input from City staff, will develop a forecast that incorporates "known and measurable" changes for the forecasted period. Burns & McDonnell will analyze the assumptions used in projecting the revenue requirement and billing units, including, but not limited to, growth rate, inflation rates, increase in contractual obligations, and capital improvement plans for fleet, equipment and facilities. We will also develop the following schedules as a part of the five-year forecast: Fleet replacement: Specific to equipment,we will collaborate with the City to develop an equipment replacement strategy for the five-year forecast. Debt service and capital improvement plan(CIP):Will account for existing debt and anticipated future CIP needs for facilities(which may include funding for a future landfill). Reserve funds: There is a need for capital and operating reserve funds.We will review existing balances and account for additional amounts that may be needed. Landfill closure and post-closure:Will account for the need for the City to fund a reserve account that will build over time to fund future closure and post closure costs(if applicable). Review Revenue Generation from Existing Customer Classes and Review Billing Methods Burns & McDonnell will evaluate how much revenue is currently generated by the current fee structure from the existing customer classes to determine if revenues generated are sufficient to recover the cost of service assigned to each customer class. We will assess the overall revenue requirement compared to revenue generated under the current fee structure and rates. We will complete this analysis based on a review of revenue received by the City for the various services provided. We will independently estimate how much revenue should be generated by the current billing units to estimate whether any under-recovering is occurring. This analysis will provide the City with an BURN S\MSDONNELL_ understanding of how current rates are either over- or under-recovering compared to the cost of service. Fee Structure Methodology and Rate Development The objective of this task is to develop proposed rates that meet the needs and objectives of the solid waste system for the next five years. Burns & McDonnell will assess the existing rate structure for its historical performance, overall equity, and ability to meet City objectives for future solid waste rates. Prior to developing specific rates, we will provide an overview of several proven approaches to municipal solid waste fund rate design and implementation. Rate alternatives for each rate category will be developed based on our industry experience and collaboration with the PTF. For each alternative, rates will be designed to generate adequate revenues in accordance with the financial forecast results, reflect the results of the cost of services analysis, and further the objectives of the City for the utility systems. Pricing objectives could include, but would not be limited to: Escalation Strategies—For communities that have a need for increases,rates can be designed to be phased in at once or over an extended period of time. We will provide the City with an understanding of the financial implications associated with the timing of the proposed increases. ► Meeting Revenue Requirements in a Stable and Predictable Manner—Regardless of the outcome of the rate design process,rates must produce sufficient revenues to meet both the short-term and long-term financial needs and business objectives of the City. ► Fee Structure Equity—To the greatest extent possible,rate design will be based on cost of service principles and will not unduly subsidize certain customers or rate classes at the expense of others.We will specifically align rates with the cost of service for each of the major customer classes. ► Environmental Sustainability—Simply put,rates send pricing signals to customers.These pricing signals should promote efficient use of the City's resources and increase customer understanding of the cost associated with the various products and services provided by the City. Simple and Understandable—From a public relations perspective,simple and easy to understand rate structures are a benefit in that the City will be able to clearly communicate the relationship between the cost of service and customer use. If desired by the City, annual inflationary adjustments may be considered to provide a means by which future adjustments may be indexed and adjusted automatically.This will effectively allow the City to systematically incorporate marginal rate increases. r,,jrx LiELIVERABLES - A"base case"five-year revenue requirement forecast and fleet replacement schedule The calculation of the cost of service in each year ► Revenue projections ► Conference call to discuss findings and rate recommendations ► Rate design recommendations for the next five years for each customer class TASK 2C: LANuFILL AND RECYCLING FINANCIAL ANALYSIF Burns & McDonnell will evaluate the following key issues associated with the financial future of the City's landfill. BURN S\MSDONNELL_ Evaluate Future Landfill Funding Strategies for the Commercial Sector We will evaluate potential strategies for the City to consider for generating funding from commercial entities to contribute to a savings plan for the City's next landfill. Strategies to be evaluated will include: Environmental Fund: increasing the contribution to this existing fund Grants of Privilege:increasing the percentage paid by haulers to this existing fund Landfill Surcharge: Charging commercial customers of the Southeast Landfill an additional fee on a per ton basis For each strategy being evaluated,we will provide the City with a description of the strategy,as well as discuss the advantages and disadvantages of each. Further,we will describe the steps associated with implementing and administering each strategy,which may include updating the City's ordinance. Evaluate Financial Assurance for the Southeast Landfill The City's agreement with Republic for the operation of the Southeast Landfill includes contractual and financial provisions for funding future closure and post closure costs. For this task, Burns & McDonnell will provide an opinion regarding the adequacy of the current agreement, as well as recommendations on potential changes to consider. For this analysis, we will review documents developed by Republic's engineer, and will provide planning level perspective on the adequacy of the funding plan. This task does not include developing a new closure/post closure cost estimate for the landfill. We have assumed that the City will be able to provide information regarding the accrued liability prior to initiating the contract with Republic. We will also summarize how up to three other cities in Texas that own landfills are planning for landfill closure and post-closure costs. We will also provide an opinion on the potential impacts should the City's agreement with Republic terminate prior to the closure of the Southeast Landfill. Evaluate Financial Impacts from Eliminating Residential Recycling During a recent City Council workshop, a question was asked regarding the financial impact that would occur should the City discontinue the recycling program (note,there was not a recommendation for the City to discontinue the program). As a part of the cost of service analysis, we will evaluate how recycling costs and revenue would change. This will include determining what costs/revenue would be eliminated, as well as costs that would be stranded (e.g. cost would continue regardless of whether the program continues). We will also account for cost increases from higher disposal quantities, changes in refuse collection and the potential to purchase additional refuse carts. To estimate the changes in the refuse collection costs, we plan to interview the City's collection provider and request information. TASK 2C DELIVERABLES ► Report section that will be included in the draft and final reports Phase 3: Evaluation of Residential Collection Contract Burns & McDonnell will assist the City in determining whether to renegotiate or to reprocure the contract for waste and recyclables collection from residences and limited commercial establishments with Waste Management. BURN S\MSDONNELL_ TASK 3A: DATA ANALYSIS, FIELD OBSERVATIONS AND CONTRACTOR INTERVIEW Prior to conducting this phase of the review,Burns&McDonnell will review the operational and financial data collected in Phase 1 to gain an initial understanding of key issues that may need to be addressed during the review.To gain a first-hand understanding of the provided services and associated challenges,we will conduct one day of field observations and continued discussions with City staff. We have included budget to interview representatives from WM to gain insight on their perspectives. TASK 313: FINANCIAL ANALYSIS, MARKET RESEARCH AND CONTRACT REVIEW Burns & McDonnell will complete a financial analysis of the existing and requested pricing from WM. This analysis will include comparisons to financial terms for other cities in the DFW Metroplex, as this will provide the City with an understanding of how competitive its current rates are and whether the City could potentially expect to receive higher or lower pricing should the City decide to issue a request for proposals (RFP), as opposed to negotiating with the current provider. We will specifically compare pricing from the City of Fort Worth to multiple cities that contract for residential solid waste and recycling services. Our review will provide an understanding of how the pricing compares to the City based on the current and requested price increase from WM. We will also review the existing contract between the City and WM to identify issues that are potentially relevant to the requested rate increase. This effort will not include a comprehensive review of the contract, since members of the Burns & McDonnell project team completed a comprehensive analysis of the contract in 2012 for the City. We will also provide perspective on key issues that may need to be addressed as a part of the City's decision-making process. Issues may include but not be limited to collection services (e.g. how bulk and brush are collected) and location of disposal/processing facilities. TASK 3C. __JELOP OPINION ON THE OPTIMAL NUMBER OF COLLECTION DISTRICTS Burns & McDonnell will provide perspective on whether the City would be better served from having one versus multiple geographic areas (e.g. districts) for a collection contract. Since this is a topic that project team members evaluated for the City of Tulsa as part of its procurement planning, we will leverage this prior information for the City of Fort Worth. For this project, we will summarize the options, discuss advantages and disadvantages. We will also summarize the analysis that was completed for the City of Tulsa (which serviced approximately 115,000 households at the time). TASK 3D: CART MANAGEMENT BENCHMARKING While not a part of the collection contract,the City has a separate contract in place for cart management. For this task, we will benchmark up to three other cities that contract for the management of residential carts. The benchmarking will summarize financial, contractual and managerial issues associated with cart management. We will also provide perspective on the process and potential costs for the City to have the collection contractor provide cart management services. Our analysis will assume that the City will continue to purchase the carts directly. BURN S\MSDONNELL,_ TASK 3E: CONDUCT WORKSHOP AND DEVELOP BUSINESS STRATEGY Based on the analysis completed during the preceding tasks, we will conduct a workshop with the PTF. The primary purpose of this workshop will be to assist City staff in deciding the next steps for relationship between the City and WM, as well as developing a longer-term strategy for the provision of solid waste and recycling services. We will specifically address whether the City should renegotiate the contract with the existing contractor versus reprocuring the services. Based on the workshop discussion, we will provide key finding and recommendations regarding a path forward for the City. PHAS DELIVERABLtZ� ► Key findings and recommendation section to be included in the report Phase 4: Report Preparation TASK 4A: DRAFT REPORT Upon completion of the analyses outlined above, Burns & McDonnell will develop a Draft Report outlining recommendations and conclusions. We have developed our budget based on the assumption that the report will include all phases in a single report. Burns & McDonnell is committed to making sure the City thoroughly understands the recommendations in the Draft Report. Burns & McDonnell will provide the findings to the City staff and allow these individuals sufficient time to have their concerns and/or questions addressed. Burns & McDonnell will have a conference call with City staff to discuss the report. Burns & McDonnell will request that written comments be provided as one submittal from City staff to facilitate consensus regarding staff comments. TASK 413: FINAL RF1'ORT Upon receipt of City staff recommendations and comments, Burns & McDonnell will make appropriate changes and provide the City with a Final Report. We will issue the Final Report within three weeks of receiving comments from the City. PHASF " ^'71,IVERABLES ► Electronic version of the Draft Report ► One conference call to discuss the Draft Report Printed and one electronic version of the Final Report Phase 5: Additional Services Pending the results from Phases 1—4,the City may request additional services from Burns & McDonnell. These services will only be completed upon approval from the City. We have included a budget allowance of$4,200 to assist the City with this task. This assistance may include but not be limited to the following services: ► Additional On-site meetings with the City and/or contractor(s) ► City Council meetings and/or presentations ► Assistance with contract negotiations ► Drafting or review of proposed changes or amendments to contract ► Updating financial analysis to reflect negotiated rates ► Further detailed analysis for any phase of the scope of work PHASE 5 DELIVERAtsLt;, ► To be determined BURN S`MSDONNELL_ This section proposal is for Burns & McDonnell to continue assisting the City of Fort Worth (City) with solid waste consulting services focused supporting the on-going financial and contractual review project and planning for long-term disposal needs. Listed below are the key tasks to be accomplished by our project team as an amendment to Contract No. 52570 between the City and Burns & McDonnell (July 2019). We have organized this scope of services by describing one change to the existing Scope of Work and to include four additional phases: (6) Project Initiation and Management, Meetings and Stakeholder Engagement; (7) Landfill Financial Analysis and Valuation; (8) Long-Term Disposal Analysis; and (9) Landfill Report Preparation and Presentation. This proposal includes our scope of work and fee; a schedule will be developed once we understand the timing of the Notice to Proceed. Z)VUrc ur VVUKK We are proposing to increase the existing funding allocation for the Phase (5)Additional Services by $50,000 to adjust for additional work associated with the following four additional phases. Phase 6 Project Initiation &Management, Meetings and Stakeholder Engagement TASK 6A: INITIAL DATA REQUEST & REVIEW Following receipt of the Notice to Proceed, Burns& McDonnell will provide the City with a detailed preliminary data request that will encompass data needs for completing the study. The data request will itemize our needs for understanding the operational,technical, planning and financial considerations that must be addressed. An initial listing of data to be requested followings: Applicable City ordinances Solid waste management plan Financial reports required under the landfill contract with Republic Waste characterization study Landfill operating agreement with Republic Past Landfill disposal reports Future City waste generation projections Legal descriptions of a to be determined Landfill Available permit or design documents for a to be determined Landfill Applicable City landfill and transfer station siting ordinances or criteria This task also includes organization and preliminary analysis of all data received. We recognize that the City may not have all information requested readily available or may track information differently than requested. We will work with the appointed project manager to arrive at reasonable substitutes for the key data, if needed. BURN S\MSDONNELL_ TASK 613: ESTABLISH A PROJECT TASK FORCE In order to get the best information possible and increase buy-in for the outcomes of this project, we recommend that the City establish a Project Task Force (PTF) to participate throughout the process. The PTF would ideally include 4—6 key representatives from diverse roles and levels of responsibility within the City. The PTF will participate in the kick-off meeting, help facilitate data collection, provide feedback on preliminary findings, and provide support to our project team throughout the project. By involving a variety of individuals with a wide range of skills and responsibilities, a complete picture of the solid waste system can be developed more quickly. The diverse experience and concerns of the participants will help identify problem areas and contribute meaningful input to the solutions. Full participation from the PTF members should also be expected to increase buy-in and will speed implementation of the project findings. TASK 6C: KICK-OFF MEETING R PROJECT MANAGEMEN Prior to commencing the study, members of the project team will conduct a kick-off conference call and then an on-site kick-off meeting with key City staff. The purpose of the initial conference call will be to plan for the kick-off meeting and site visit. At this kick-off meeting we will discuss the project work plan, key issues to be addressed, key findings from previous engagements as well as confirm the timing associated with the various project tasks. We will discuss our initial data request (as previously described)that we will have provided to the City staff 7 to 14 days prior to the kick-off meeting. Burns & McDonnell will provide the agenda and any handout materials at least two days in advance. During the meeting, we will also identify primary contacts for our project team and the City and establish protocol for the exchange of information and the resolution of issues that arise in the normal course of this engagement. To facilitate effective communication between project team members and the City throughout the course of this project, Burns & McDonnell will: Schedule and participate in periodic conference calls as Refine needed to discuss project matters (as identified in the F Understanding specific tasks of this scope of work) 'IF Create IFF ► Provide periodic status updated via electronic format , 'All; Confirm City ► Be available for other communication(s) as needed L Pathways MEETING TASK 6D: PROJECT MEETINGS Confirm �. . . - During the course of the project, as well as for the on-goingSchedule Information cost of service study,there may be a need for additional in L Make - person and/or conference call meetings with City staff and/or Assignments City Council. This task includes a budget allowance for Burns & McDonnell to participate in requested meetings. This task will L A be invoiced on a time and materials basis. The kick-of meeting will provide a forum for establishing clear communication for the project. i r►orx 6E: o i r►rxr_r1OLL r_rt r_NGr►vEMENI MEETINGS As a part of the cost of service and rate study currently being completed,the City will possibly need assistance in conducting public/stakeholder engagement activities. The City is considering a two-phase approach. The first phase would be held to host 10 in-person meetings and one webinar to provide BURNS MSDONNELL.. Fort Worth residents with an understanding of the financial issues facing the solid waste system, as well as to discuss potential options, which may include rate increases. The second phase would be to host 5 in-person meetings and one webinar to inform stakeholders at the end of the study what the City heard from residents and ultimately decided was the best option. Our proposal provides the City with the option to select one of three scenarios regarding our role. For each scenario,the City will be responsible for providing an appropriate meeting location, ensuring A/V systems are available, hiring security personnel, and promoting the meeting/notifying citizens. Our budget assumes some meetings will be scheduled on consecutive days to minimize travel expenses.The scenarios are summarized below: Scenario 1: Burns & McDonnell will create the stakeholder engagement strategy and plan with guidance from the City. This would include serving as a resource and coordinating marketing the meetings. Burns & McDonnell will develop and produce all meeting materials. All materials would be consistent with existing City brand standards. Select meeting materials would be produced in Spanish. Burns & McDonnell will provide up to four staffers for the public meetings which includes setup and breakdown, registration, Spanish translator (up to 4 of the 15 meetings), gathering input using comment forms and electronic surveys, facilitation, and documentation of the meetings. Burns& McDonnell will also work with the City to host up to two webinars. Scenario 2: Burns & McDonnell will create the stakeholder engagement strategy and plan with guidance from the City. The City will develop and produce all meeting materials. The Burns & McDonnell Project Manager will participate at the public meetings and provide one person to document the meetings using comment forms and electronic surveys. Scenario 3:The City will create a strategy and plan for stakeholder outreach with some input from Burns& McDonnell. The City will develop and produce all meeting materials. The Burns & McDonnell Project Manager will participate at the public meetings. PHASE 6 DELIVERABLES ► Preliminary data request ► Electronic copies of the kick-off meeting agenda, handouts, and follow-up summary ► Participation of Burns & McDonnell project manager and key staff in conference call and on-site kick-off meeting and other requested meetings Stakeholder engagement services- depending on level of effort requested Phase 7: Landfill Financial Analysis and Valuation The City of Fort Worth (City) is interested in better understanding how the cash flow it receives from its landfill contract with Republic Services compares to the market value for the landfill. Burns & McDonnell will project the total landfill revenues, expenses, and net cash flows in comparison to the projected cash flows to the City under the current contract. The landfill valuation scope of services will include the following tasks: Data request and review for any data not captured by the cost of service analysis BURN S\MSDONNELL_ One-day site visit by two Burns & McDonnell consultants (one senior financial analyst and one senior landfill engineer) to observe current site infrastructure and operations. Develop financial model that projects cash flow to the City under the current contract until the current site reaches capacity (status quo) Review the back-up financial documentation to justify Republic's royalty payment to the City to better understand the sources and revenues generated from landfill customers. This review will based on the City rights and access to information as defined in under Section 6.16 Reporting Requirements, Section 6.17 Audited Financial report and Section 6.18 Records of the Contract between the City and Republic. Our budget assumes that Republic provides the necessary information and that all records will be sent to Burns & McDonnell electronically. . Conduct an analysis to estimate the total percent of disposal tons from commercial collection activities that is hauled to the City's landfill versus other landfills in the region. Burns & McDonnell will rely on Grants of Privilege data provided by the City and then estimate the percent of the revenue that is from disposal based on our experience conducting cost of service analyses for commercial collection operations. Develop financial model that projects total landfill cash flow based on two scenarios (1) current market conditions until the site reaches capacity and (2) all waste generated within the City is sent to the landfill until it reaches capacity. There will be two variations of the model for each scenario: one based on a City-operated landfill and one based on the landfill operated by a private contractor, similar to the current operating scenario. Both models will take into account: o Revenues based on projected tonnages and market rate for tons (within limits of what is allowed under current contract) o Operating costs (personnel, equipment, supplies, professional services, monitoring, leachate disposal, gas collection, etc.) o Landfill cell development costs o Closure/post-closure contributions Differences in City and Private-Operator versions of the model will include: o Cost of capital o Income taxes o Lease/royalty payments To benchmark landfill gas to energy projects to proposal received by the City, Burns & McDonnell will review four contracts for high-Btu projects at municipal landfills, summarize the key financial terms, and compare that to the financial terms in the proposal submitted to the City to determine how financially competitive the proposal is to other landfill gas to energy contracts. BURN S`MSDONNELL PHASE 7 DELIVERABLES ► Draft and final report sections Phase 8: Long-Term Disposal Analysis The City owns the Southeast Landfill (SELF) located at 6288 Salt Road. The SELF is operated through a contract with Republic Waste Services (Republic). During the past five years, the remaining life of SELF has decreased from approximately SO to less than 30 years. The City is concerned about preservation of future landfill airspace for the City residents and businesses. The decline in airspace is reportedly due to Republic bringing in waste from outside the City as allowed by the 2009 SELF operations agreement. The City's goal is to maintain disposal capacity through 2060. The City envisions five options for future disposal capacity: 1. SELF preservation 2. Expansion of another to be determined landfill 3. Evaluate transfer station system with long term disposal agreement 4. The City places restrictions of waste acceptance at the SELF to only Fort Worth residents and businesses. Republic would continue to operate a modified contract. S. City siting and permitting of a new greenfield landfill. The initial step would be to complete a siting study. This option may require a new transfer station for support depending on the haul distance. The City would procure operation of the new facilities. At this time, the City may decide to first evaluate the first four options prior to authorizing Burns & McDonnell to evaluate the greenfield landfill option. The City desires that Republic complete a feasibility study for Options 1 — 3, based on a scope of work that will be developed by Burns & McDonnell. Burns & McDonnell will have the lead role to evaluate Options 4 — S. The City may defer if and when to request that Burns & McDonnell evaluate Option S. The scope of work below outlines tasks that Burns & McDonnell will complete for these options. TASK 8A: DEVELOP FFASIRILITY STUDY SCOPF OF WORK (OPTIONS In this task, Burns & McDonnell will prepare the scope of work for Republic to follow in evaluating Options 1—3. For each option Republic would provide: A description of the option facilities and waste management methods A conceptual design of the required facilities Calculations that estimate the additional capacity provided to meet the 2060 goal The steps, schedule, and planning level costs necessary to site, permit, construct, and operate the necessary solid waste facilities The local, state, and federal regulatory permitting requirements The scope of work will also describe efforts for Republic to evaluate the manner in which waste may flow to landfills in the region through 2060. The scope will identify the landfills to be included and describe the associated analysis. A draft of the scope of work will be provided to the City for review and comment. We will then incorporate these comments into a final scope of work that the City would forward to Republic. TASK PA ^ml 1\/FRARI FR ► Draft and Final Scope of Work for Republic BURN S\MSDONNELL,_ TASK 813: CONDUCT MEETINGS WITH THE CITY AND THE CITY AND REPUBLIC REGARDING' SCOPE OF WO`"' Burns & McDonnell will meet with the PTF to discuss the feasibility study scope of work for Republic. As a part of this meeting, we will collaborate with City staff to develop the initial list of the criteria that the City will consider to evaluate the options. A potential starting point for the evaluation criteria may include the following: Technical Capacity Disposal costs Impact on collection costs Environmental Ability to permit and construct Schedule Political acceptance Siting (zoning potential, neighborhood acceptance, site access) Property ownership BURNS`MSDONNELL.. AA Subsequent to the City meeting, Burns & McDonnell will facilitate a meeting between the City and Republic to outline the requirements of the scope of work for Options 1 — 3 and the schedule for completion. TASr-, tsts OELIVERABLt,-) ► Meeting Agenda and Summary TASK bG: EVALUA I E I'U I EN TIAL LANDFILL DISPOSAL RESTRICTION6 (OPTION 4) To assist with prolonging the life of SELF, Burns & McDonnell will evaluate alternatives to place restrictions on the types of materials that could be placed into SELF. Alternatives that will be evaluated will include: Banning C&D materials from disposal Banning Organic materials (e.g. yard trimmings, brush) from disposal Restricting waste volumes accepted at the SELF to residential solid waste only during the final stages of the SELF capacity As a part of this effort, we will: Review the existing City ordinances, SELF operating agreement, solid waste management plan and waste characterization study to determine what modifications are required to limit landfill disposal to residents and businesses located within the City Estimate the annual tonnage that would be diverted from the SELF with these modifications. And how this would impact the capacity of SELF ► Identify the potential facility(ies) where diverted waste would be processed or disposed TASK Pr� nFi R/FR4BLES ► Report section TASLe Qn• 17,RFFNFIFLD LANDFILL SITING STI 1r)v 10PTION 5) Burns & McDonnell will develop a planning level siting analysis to identify areas that may be suitable or unsuitable for siting a municipal solid waste facility, which would include landfills and transfer stations. The study area will include the following counties: Tarrant, Parker, Johnson, Hood, Palo Pinto, Wise and Jack. The criteria will be the following: Exclusionary considerations based on factors included in the Texas Administrative Code, such as airport safety, floodplains, groundwater, endangered or threatened species, wetlands,fault areas, seismic impacts zones and unstable areas Land use based on current characteristics (e.g. proximity to residential areas, recreational sites, historic sites, pipelines and environmentally sensitive features, schools) and future land use criteria Local jurisdiction zoning restrictions 17 of 4 Proximity to major transportation networks Parcels/sites that have a minimum of 900 to 1,200 acres This task will be limited to identifying potential areas that could be suitable for a municipal solid waste facility. Following this initial analysis,the City may need to complete a more detailed analysis of individual sites. TASK 8E jELIVERABLES ► Report section and GIS-based maps TASK 8E. 1VALUATION OF WORK PRODUCTS DEVELOPED BY REPUBLIC Based on the scope of work that Republic will develop for Options 1—3, Burns & McDonnell will review the work products. For our review, we will provide the City with one set of written comments and will conduct one conference call with the City and another conference call with the City and Republic to review the comments. If there is a need for a second review based on changes to be made,they will be provided as additional services. TASK 8E DELIVERABLES ► Written comments to the Republic work products TASK 8r: EVALUATION OF OP'I IUNS wORKSHOF Prior to the workshop, Burns & McDonnell will summarize the evaluation of Options 1—5 completed, providing the following: A description of each option, including the facilities and waste management methods required A conceptual plan of the required facilities An estimate of the additional capacity provided to meet the 2060 goal The steps, schedule, and planning level costs necessary to site, permit, construct, and operate the necessary solid waste facilities The local, state, and federal regulatory permitting requirements Based on the discussion during Task 413, Burns & McDonnell will prepare a set of evaluation criteria and ranking matrix to compare all five options. A draft of the matrix will be provided to the PTF for concurrence. Burns & McDonnell will facilitate a workshop with the PTF to discuss the findings of all options. During the workshop, Burns & McDonnell and City staff will jointly complete the matrix based on the criteria developed for Options 1—5. TASK RF DELIVERABI F!z' ► PowerPoint slides and report section 18 of 3 Phase 9: Landfill Report Preparation I A5n 9A: UKAI- I I _r-um i Upon completion of the analyses outlined above, Burns & McDonnell will develop a Draft Report outlining recommendations and conclusions. We have developed our budget based on the assumption that the report will include all phases in a single report. Burns & McDonnell is committed to making sure the City thoroughly understands the recommendations in the Draft Report. Burns & McDonnell will provide the findings to the City staff and allow these individuals sufficient time to have their concerns and/or questions addressed. Burns & McDonnell will have a conference call with City staff to discuss the report. Burns & McDonnell will request that written comments be provided as one submittal from City staff to facilitate consensus regarding staff comments. TASK 913: FINAL REPORT Upon receipt of City staff recommendations and comments, Burns & McDonnell will make appropriate changes and provide the City with a Final Report. We will issue the Final Report within three weeks of receiving comments from the City. PHASE 9 DELIVERASI PS ► Electronic version of the Draft Report ► One conference call to discuss the Draft Report Printed and one electronic version of the Final Report Phase 10: Revised Long-Term Disposal Analysis TASK 1OA: LOKIP-TERM FINANrIAL COMPARIOnKi nc rNISPOSAL CorinKiC% For this task, Burns & McDonnell will develop a financial projection, through the year 2060, based on four scenarios. Each scenario will include current SELF operations, based on the work Burns & McDonnell completed for Phase 7, until currently-permitted capacity of the SELF reaches capacity. The four scenarios that will be included in the financial projections are: Scenario 1—Expand SELF and once capacity is reached,develop and operate City-only transfer station until 2060. Scenario 2—Expand SELF and once capacity is reached,haul to transfer station owned and operated by Republic until 2060. Scenario 3—Transition to Republic-owned landfill once SELF capacity is reached and once the Republic landfill reaches capacity,develop and operate City-only transfer station until 2060. Scenario 4—Transition to Republic-owned landfill once SELF capacity is reached and once the Republic landfill reaches capacity,haul to transfer station owned and operated by Republic until 2060. Scenario 5—One variation of Scenarios 1,2,3,or 4 based on reducing tonnage at the SELF. Scenario will be defined after the draft analysis of Scenarios 1 through 4. For the transfer station scenario that only accounts for City tonnage, Burns & McDonnell will assume the facility would be built on City-owned property, whether at SELF or another location. For this Scope of Work, Burns & McDonnell will not be evaluating the feasibility of whether the available area at SELF could accommodate the transfer station. If it is determined that a City- only transfer station at SELF is a financially viable option, further studies could be completed in the future to evaluate the feasibility of locating a transfer station at SELF. 19 of 3 The table below summarizes the planned source for the capital and operating cost estimates for the landfill and transfer station analysis. Republic Burns & McDonnell Burns & Burns & McDonnell Services Transfer Station McDonnell Transfer Station Model (Phase 7) Model To compare the options, Burns & McDonnell will evaluate the projected costs to the City each year through 2060. Where appropriate, Burns & McDonnell will also account for rent revenues received based on the structure of the current landfill operating agreement. Burns & McDonnell will provide summary of the results from the analysis and hold a video call with Code Compliance staff to review the results and discuss criteria. TASK 1013: EVALUATION OF SCENARIOS WORKSHOP This task is similar to Task 8F, but the deliverables will differ slightly based on the analysis developed by Burns & McDonnell in Task 10A. The purpose of the workshop will be to present the findings to a group of City stakeholders (to (e.g., Planning, Development, Zoning, PTW, Stormwater& possible Economic Development)to review the results of Task 10A. Prior to the workshop, Burns & McDonnell will summarize the evaluation of Scenarios 1—S, providing the following: A description of each scenario,including the facilities and waste management methods required ► Bulleted summary of advantages and disadvantages ► A timeline for landfill capacity(including existing SELF,SELF expansion or Republic Services landfill) for each scenario A planning level estimate of the up-front costs necessary to permit and construct the disposal alternative for each scenario,and which costs would be borne by the City versus private contractor ► A 40-year projection for each scenario ► An overview of the MSW permitting requirements for each scenario During the workshop, Burns & McDonnell and City staff will jointly rank the options based on a set of criteria that will be established with Code Compliance staff prior to the workshop. The budget for this task is the same as Task 8F. ,ASK 10C: ADDITIONAL DRAFT AND FINA ;Er IRT 'EC—IONS Task 10C is an incremental effort relative to the existing Tasks 9A(Draft Report) and Task 9B (Final Report). Burns & McDonnell will detail the relevant assumptions and summarized analysis from Task 10A, including additional appendices, and provide a ranking of the scenarios based on the results of the workshop from Task 10B. PHASF -in ^FI I\/FPAQI CC ► 40-year financial projections for Scenarios 1—S ► Workshop materials and documentation of workshop discussion, including ranking of scenario ► Electronic version of the Draft Report 20 of 3 One conference call to discuss the Draft Report Printed and one electronic version of the Final Report 21 of 3 FEF The following table provides an outline of the services to be provided and includes the fee, inclusive of professional fees and out-of-pocket expenses. Services for Phases 6A, 6C, 6E, 7, 8 and 9 will be invoiced on a percent complete basis. Phases 5 and 6D tasks will be invoiced on a time and expense basis (based on the rate schedule). TASK 1A: INITIAL DATA REQUEST & REVIEW $1,700 TASK 1 B: ESTABLISH A PROJECT TASK FORCE $0 TASK 1C: KICK-OFF MEETING & PROJECT MANAGEMENT $7,400 TASK 2A: CURRENT COST OF SERVICE ANALYSIS $17,200 TASK 213: FORECASTED COST OF SERVICE ANALYSIS, PROGRAM REVENUE STREAM ANALYSIS AND RATE DEVELOPMENT 5-Year Forecasted Cost of Service Analysis $16,200 Review Revenue Generation from Existing Customer Classes and $4,100 Review Billing Methods Fee Structure Methodology and Rate Development $8,000 TASK 2C: LANDFILL AND RECYCLING FINANCIAL ANALYSIS Evaluate Future Landfill Funding Strategies for the Commercial $6,700 Sector Evaluate Financial Assurance for the Southeast Landfill $4,000 Evaluate Financial Impacts from Eliminating Residential Recycling $6,300 • • • — •0— • • ro 22 of 3 TASK 3A: DATA ANALYSIS, FIELD OBSERVATIONS AND CONTRACTOR INTERVIEW $11,200 TASK 313: FINANCIAL ANALYSIS, MARKET RESEARCH AND CONTRACT REVIEW $9,700 TASK 3C: DEVELOP OPINION ON THE OPTIMAL NUMBER OF COLLECTION DISTRICTS $3,100 TASK 3D: CART MANAGEMENT BENCHMARKING $5,700 TASK 3E: CONDUCT WORKSHOP AND DEVELOP BUSINESS STRATEGY $8,700 TASK 4A: DRAFT REPORT $11,700 TASK 413: FINAL REPORT $5,600 $4,200 Project Task Total11 iphase 5: Additional ServicesF hase 6: Project Initiation & Management, Meetings and $23,500 • •- Engagement �J TASK 6A: INITIAL DATA REQUEST & REVIEW $4,600 TASK 613: ESTABLISH A PROJECT TASK FORCE $0 TASK 6C: KICK-OFF MEETING & PROJECT $10,600 MANAGEMENT TASK 6D: PROJECT MEETINGS $30,000 TASK 6E: STAKEHOLDER ENGAGEMENT MEETINGS' up to $88,000 $63,400 23 of 3 TASK 8A: DEVELOP FEASIBILITY STUDY SCOPE OF $8,300 WORK (OPTIONS 1 — 3) TASK 8B: CONDUCT MEETINGS WITH THE CITY AND $10,200 THE CITY AND REPUBLIC REGARDING SCOPE OF WORK TASK 8C: EVALUATE POTENTIAL LANDFILL DISPOSAL $11,700 RESTRICTIONS (OPTION 4) TASK 8D: GREENFIELD LANDFILL SITING STUDY $17,900 (OPTION 5) TASK 8E: EVALUATION OF WORK PRODUCTS $9,400 DEVELOPED BY REPUBLIC TASK 8F: EVALUATION OF OPTIONS WORKSHOP $11,500 TASK 9A: DRAFT REPORT $16,600 TASK 9B: FINAL REPORT $7,200 TASK 10A: LONG-TERM FINANCIAL COMPARISON OF $22,000 DISPOSAL OPTIONS TASK 10B: EVALUATION OF SCENARIOS WORKSHOP Included in Task 8F TASK 10C: ADDITIONAL DRAFT AND FINAL REPORT SECTIONS $4,500 [Expanded Project Tasks Total • 11 61 A Complete Project Tasks Total (up to based on final Stakehol "$470,90 Engagement &Additional Servi 1. The fee for the stakeholder engagement meetings will depend on the scenario selected by the City. The fee table identifies the cost for Option 1. Fees for Options 2 and 3 are $62,000 and $36,000, respectively. The budget allowance for the additional services is $54,200 and will be billed based on the billing rates included in the following table. Additional services will not be provided until we receive approval from the City. Depending on the requested services,there may be a need for additional budget, and this will be communicated in writing to the City, and no additional work will occur until we receive authorization from the City. 24 of 3 Senior Technical Adviser $241 Senior Project Manager $237 Senior Engineer/Consultant $204 Consultant 2 $170 Consultant 1 $123 Administrative $64 There will also be a $4.7S per hour technology charge for each hour. These rates are effective through June 30, 2020. 25 of 3