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HomeMy WebLinkAboutContract 26855 CITY CON RACT Np Y -16955- STATE 9u- STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF TARRANT § THIS AGREEMENT is made and executed this y of June, 2001, by and between the City of Fort Worth, Texas, a municipal corporation situated in Tarrant and Denton Counties, Texas, hereinafter called the "City", acting herein by and through Mike Groomer, its duly authorized Assistant City Manager, and Black and Veatch Corporation, hereinafter called the"Consultant." WITNESSETH: WHEREAS, the City wishes to engage the Consultant to perform a wholesale wastewater cost of service and rate study; and WHEREAS, the Consultant is willing to perform such wastewater cost of service and rate study for the City; and WHEREAS, the City desires to engage the Consultant to render certain services in connection therewith and the Consultant is willing to provide such services; 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. Services of the Consultant: 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. SECTION 2. Scope of Services: The Consultant shall conduct a wholesale wastewater cost of service rate study and develop wholesale wastewater rates for fiscal year beginning October 1, 2001 in accordance with Attachment A. The Consultant shall not be responsible for additional services except by written amendment to this agreement signed by both parties hereto. SECTION 3. Time of Performance: Services of the Consultant shall commence upon execution of this Agreement. Unless otherwise directed by the City and agreed to by thD Consultant, the timing of interim deliverables shall follow the schedule as set forth by City, as follows: By June 14, 2001 -First interim review with Wholesale Advisory Committee (Operations &maintenance cost analysis) By June 28, 2001 - Second interim review with Wholesale Advisory Committee (Depreciation,rate of return analysis, and draft rate structure recommendations). Consultant shall complete and deliver the draft report on or before July 26, 2001, the final BLACK AND VEATCH CORPORATION ����_��� ���U�® WHOLESALE WASTEWATER RATE STUDY 2001 C e o v Page 1 of 8 ( j0 pn�n ,x A QDY 20 and shall complete all other services on or before report on or before August 31, O1, a p a September 30, 2001,unless an extension of time is granted by the City in writing. The City recognizes that portions of the Consultant's work and the completion thereof are predicated upon timely performance and completion of certain activities required to be performed by the City. Accordingly, delays in Consultant's performance and completion that occur due to circumstances and events beyond the reasonable control of the Consultant will give rise to the need for an extension of time for the completion of Consultant's work. Consent for extension of time for performance as a result of the foregoing shall not be unreasonably withheld or delayed. SECTION 4. Compensation to the Consultant and Method of Pa ent: 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 this section an amount not to exceed $75,525. 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, and which amount is hereinafter referred to as the"Basic Fee." The Basic Fee 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 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. Compensation for the services rendered by the Consultant as set forth in Attachment "A", entitled"Basic Services,"shall be paid at the following rates: Project Director $150 Project Manager $125 Senior Financial Analyst $100 Clerical Staff $ 55 Technical Advisor $125 M/WBE Subconsultant $100 These rates are effective for all work completed prior to October 1, 2001. After such time, these rates are subject to change based on written agreement by both parties. Reimbursable expenses are part of the Basic Fee and include, but are not necessarily limited to subcontractor expenses, travel, report production and other out-of-pocket expenses, supported by such documentation as the City may reasonably request. There shall be no mark-up for reimbursable expenses. BLACK AND VEATCH CORPORATION WHOLESALE WASTEWATER RATE STUDY 2001 Page 2 of 8 The undersigned representatives of the City hereby warrant and represent that all necessary rules and regulations and statutory provisions in connection with the authorization of this Agreement and the amount to be paid hereunder have been complied with and that the funds necessary to meet its contractual obligations under this agreement have been appropriated for this purpose and are free from any previous encumbrance and are being held in the appropriate fund for the purpose of this Agreement. SECTION 5. 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 6. 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 workspace 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. Further, such subcontracts shall provided that the subcontractor agrees to photocopy such documents as may be requested by the City and the City shall reimburse the subcontractor for the cost of copies at the rate published in the Texas Administrative Code in effect as of the time copying is performed. Consultant agrees to photocopy such documents as may be requested by the City. The City agrees to reimburse Consultant for the cost of copies at the rate published in the Texas Administrative Code in effect as of the time copying is performed. SECTION 7. Indemni : 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 anyone for whom it is legally liable 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 BLACK AND VEATCH CORPORATION WHO E 8ALE WASTEWATER RATE STUDY 2001Page r� third party. For the purposes of this section, the term "third party" does not mean officers, subconsultants, the agents or employees of the Consultant. The indemnity required hereunder shall not be limited by reason of the specification of any particular insurance coverage in this Agreement. The Consultant shall have the right to defend against any and all such claims, actions, suits or proceedings with counsel of its own choosing and shall have the right to settle and or compromise such matter as the Consultant deems appropriate. The City will endeavor to provide Consultant with written notice of any such claims within 10 business days after receipt of by the City. The City agrees that it will cooperate with the Consultant in the defense of any such matter including,but not limited to,providing necessary documents and personnel to testify. SECTION 8. Limitations: To the fullest extent permitted by law, Consultant shall not be liable to City for any special, indirect, or consequential damages resulting in any way from the performance of the services. To the fullest extent permitted by law, Consultant's total liability to City for all claims, losses, damages, and expenses resulting in any way from the performance of the services shall not exceed five hundred thousand dollars($500,000). 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. SECTION 10. Non-Discrimination: The Consultant agrees that its employees and applicants for employment and those of any labor organization, subconsultants, or employment agency in either famishing or referring employee applicants to the undersigned are not discriminated against as prohibited by the terms of City Ordinance No. 7278 as amended by City Ordinance No. 7400. SECTION 11. M/WBE Goals: In accord with City of Fort Worth Ordinance No. 11923, as amended, the City has goals for the participation of minority business enterprises and woman business enterprises in City contracts. Engineer acknowledges the M/WBE goal established for this contract and its commitment to meet that goal. Any misrepresentation of facts(other than a negligent misrepresentation) and/or the commission of fraud by the Engineer may result in the termination of this agreement and debarment from participating in City contracts for a period of time of not less than three(3)years. SECTION 12. Changes: The City may, from time to time,request changes in the Scope of Services of the Consultant to be performed hereunder. Such changes, including any increase or decrease in the amount of the Consultant's compensation,which are mutually agreed upon by and between the City and the Consultant shall be incorporated i itten amendments to BLACK AND VEATCH CORPORATION90b L�n' WHOLESALE WASTEWATER RATE STUDY 2001 Page 4 of 8 U'Oo ^�(!`U'Ulj U�ryNo this Agreement. SECTION 13. Personnel: A. 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. B. 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. C. The Consultant represents that the Consultant's Project Director,Mr. Larry A. Peart, is available for the direction of the Basic Services indicated in Attachment A. SECTION 14. 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 15. Termination for Cause. If through any cause, unless it is caused by another party or due to an act beyond the control of the Consultant, the Consultant shall fail to materially fulfill in a timely and proper manner its obligations under this Agreement or if the Consultant shall materially violate any of the covenants, agreements or stipulations of this Agreement, the City shall thereupon have the right to terminate this Agreement by giving written notice to the Consultant of such termination and specifying the effective date thereof, with such effective date not to occur earlier than seven days after the notice date. The Consultant shall have seven calendar days to cure such alleged defaults. Unless such alleged defaults are cured and accepted by the City within this seven-day period, the Consultant shall immediately cease all work. In such event, all finished or unfinished documents, data, maps, studies, surveys, drawings, models, photographs and reports prepared by the Consultant under this Agreement shall, at the option of the City, become its property, and the Consultant shall be entitled to receive compensation in accordance with the terms of this contract for all work completed in accordance with the terms of this contract up to the date of termination. Performance shall be defined in accordance with the terms of this contract and all attachments. Compensation is to include fees and expenses incurred by the Consultant as defined in Section 4 of this Agreement. Nothing herein shall constitute a waiver of any right, at law and at equity, which the City may have if the Consultant is in default, including the right to bring legal actions for damages or force the specific performance of this contract. The Consultant's work papers are specifically excluded from the list of documents, which become the City's property under this Section. However, the City does have the right to make copies, at its own expense, of the Consultant's work papers. SECTION 16. Termination of Convenience of City: The City may terminate this Agreement for its convenience at any time by giving at least fifteen(15) days' notice in writing to the BLACK AND VEATCH CORPORATION WHOLESALE WASTEWATER RATE STUDY 2001 Page 5 of 8 f Ju U �Ui% +C�l�Ur C'���: ftS tYIYP�J U 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 subconsultants or other third parties. Consultant will make reasonable attempts to cancel all such liabilities in order to mitigate the cost to the City. If this Agreement is terminated due to the fault of the Consultant, Section 14 hereof relative to termination shall apply. SECTION 17. Insurance: The Consultant shall maintain at its own expense(1) comprehen- sive general liability insurance, (2) automobile liability, (3)professional liability insurance for errors and omissions, and(4)worker's compensation insurance in the following amounts: Commercial General Liability $1,000,000 each occurrence $1,000,000 aggregate Automobile Liability $1,000,000 each accident(or reasonably equivalent limits of coverage if written on a split limits basis). Coverage shall be on any vehicle used in the course of the PROJECT. Worker's Compensation Coverage A: statutory limits Coverage B: $100,000 each accident $500,000 disease-policy limit $100,000 disease-each employee Professional Liability $1,000,000 each claim/annual aggregate The insurance shall provide coverage for liabilities or claims for damages resulting solely from services performed or undertaken by the Consultant hereunder. Certificates of Insurance shall be furnished to the City upon the request of the City. SECTION 18. Severability: If any portion of this agreement is held to be void, invalid, or otherwise unenforceable, in whole or part,the remaining portions of this agreement shall remain in effect. SECTION 19. 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 20. Agreement Amendment: This instrument represents the entire understanding between the City and the Consultant in respect to the Project, supersedes any and all prior written or oral negotiations of agreements between the parties, and may only be modified in BLACK AND VEATCH CORPORATION WHOLESALE WASTEWATER RATE STUDY 2001 ° Page 6 of 8 �� 7^ r r' � � o writing signed by both parties. SECTION 21. Notices: All written notices to the respective parties shall be sent by registered mail and be addressed as follows: CITY OF FORT WORTH CONSULTANT Mr. Mike Groomer Mr. Larry A. Peart Assistant City Manager Project Director City of Fort Worth Black and Veatch Corporation 1000 Throckmorton 14100 San Pedro Ave., Ste. 310 Fort Worth,Texas 76102 San Antonio, Texas 78232 SECTION 22. Captions: The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms and conditions of the Agreement. SECTION 23. Conflicts: This Agreement 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 Agreement and of no further force or effect. BLACK AND VEATCH CORPORATION WHOLESALE WASTEWATER RATE STUDY 2001 MU Page 7 of 8 IN TESTIMONY WHEREOF,the City of Fort Worth, Texas,has caused this instrument to be signed in its name and on its behalf by its Assistant City Manager, and attested by its City Secretary,with the Corporate Seal affixed; and the Consultant has also properly executed this instrument in triplicate copies each of which is deemed an original. ATTEST: BLACK AND VEATCH CORPORATION Corporate Secretary Larry A. Peart City Secretary Project Director AT EST: CITY OFF T WZ 11 V.C�IAL--w lona Pea on 4-6?t-D/ ike Groomer City Secretary Assistant City Manager APPROU REC ��ENDE Dale A. Fisseler,P.E.,Director Fort Worth Water Department APPROVED AS TO FORM AND LEGALITY: C;4j� /�� Assistant y Attorney e - 185K� Contract Authorization Date iviC�Oji%�jcv�1 e� ice^a BLACK AND VEATCH CORPORATION WHOLESALE WASTEWATER RATE STUDY 2001 = Page 8 of 8 I ATTACHMENT A CITY OF FORT WORTH,TEXAS FORT WORTH WATER DEPARTMENT WHOLESALE WASTEWATER COST OF SERVICE AND RATE STUDY The Consultant shall conduct a wholesale wastewater cost of service and rate study for Fiscal Year 2002 (year beginning October 1, 2001) in accordance with the scope of service task plan presented below. The scope of services includes basic elements covering revenue requirements determination, cost of service allocations, and rate design. In addition, it includes review of the City's rate model as well as meetings/presentations and the submittal of reports. Further,the scope ensures that the wholesale wastewater rate study will be performed in accordance with generally accepted principles for wastewater rate studies and that the methodology utilized will comply with the terms of the uniform contract between the City and its wholesale customers. Task 1 -Establish Cost of Service(Revenue Requirements) The cost of service, or revenue requirements, to be shared by the City's wholesale customers for the "test year" ending September 30, 2000, will be established utilizing the rate methodology contained in the uniform wholesale contract between the City and wholesale customers. Revenue requirements will be determined on a utility basis and will include operating and maintenance (O&M) expense, depreciation expense, return on investment, and street rental fees. Specific activities to be accomplished in this task include: 1. Operating_& Maintenance Expense. Test year O&M expense to be shared will include historical costs for the fiscal year ending September 30, 2000, adjusted for known and measurable changes to expense categories, such as salary and wages, employee benefits, power and chemical costs, non-recurring costs recovered over a related benefit period, etc. 2. Depreciation Expense. Annual depreciation expense to be shared will be based on available plant investment data from the Fort Worth Fixed Asset Tracking System, as of March 31, 2001, net of grants and contributions, applied to appropriate annual depreciation rates as utilized in the most recent wholesale wastewater cost of service study. 3. Return on Investment and Street Rental Fee. Return on investment to be shared will be calculated on investment in facilities providing water service to the wholesale customers (or rate base). Investment will include plant investment net of accumulated depreciation, grants and contributions, plus construction work in progress at March 31, 2001, including recognition of inventories and working capital. Return will be determined by applying a rate of return equal to the weighted average imbedded cost of outstanding debt plus 1-1/2 percent to plant investment. uRAI bH The street rental fee to be shared will be calculated as 4 percent of the sum of O&M, depreciation, and return on investment attributable to wholesale wastewater service. Task 2 -Allocate Cost of Service to Customer Classes The wholesale customer share of the test year cost of service will be developed by first allocating the elements of cost of service identified in Task 1 to functional cost components and then to wholesale customers based on their proportional share of units of service associated with each functional cost category. Specific activities to be accomplished in this task include: 1. Allocate Cost of Service to Wastewater Service Functional Cost Components. O&M, depreciation, and return will be allocated to the various costs of service components which constitute a functional classification of service provided to wastewater customers. The allocation methodology endorsed by the WEF in its Financing and Charges for Wastewater Systems manual will be used to develop the allocations to functional cost components consisting of volume/capacity, strength (BOD &TSS),customer billing,customer metering, and retail only parameters. The return element will be based on allocated net plant investment or rate base. 2. Allocate Functionalized Costs to the Wholesale Customer Class. The wholesale customer class will be allocated their share of the functional cost of service component costs based on their responsibility for each functional component cost as determined by their proportional share of related units of service associated with each cost function. Task 3-Design Wholesale Wastewater Rates for Fiscal Year 2001-2002 Percentage allocations and unit costs developed in connection with the cost of service methodology/allocation task (Task 2) will serve as the basis for the development of cost of service based rates for the wholesale customers. As discussed in Task 6, the City's existing rate model will be revised as appropriate and will be utilized in performing this task. This rate design process will adhere to the rate structure requirements of the Wholesale Uniform Wastewater Contract. Specific activities to be accomplished in this task include: 1. Recommend Wholesale Rate Pricing Structure. Unit costs developed in Task 2 will be utilized to develop a schedule of proposed charges and will be compared with existing charges. The proposed charges, at a minimum, will include the following elements: Volume Charge - $per 1,000 gallons BOD Charge- $per pound TSS Charge - $per pound Customer Charge- $per month Task 4-Provide Recommendations for Changes in Cost/Rate Methodology The City's current cost of service - rate methodology will be reviewed for: (1) adherence to the terms and conditions of the uniform wholesale contract; (2) correct and A-2 r, consistent application of the utility basis cost of service concepts and principles; and (3) recognition of special conditions and factors which may influence the wholesale rate design causing significant fluctuations from year to year in calculated rates. After discussions with City staff and the Wholesale Wastewater Advisory Subcommittee, studies may be conducted on flow normalization, strength billing assignments, and other assumptions/applications incorporated in the ratemaking methodology if considered necessary. Based upon this review and any recommendations resulting therefrom for making changes in the wholesale rate calculation methodology, modifications will be made as appropriate,pertaining to each of the following areas: 1. Normalization of Wastewater Volumes. The influence of dry and wet weather years on the annual sales volumes of customers can cause wide variations in calculated rates from year to year. The feasibility of reflecting several years of usage history in the apportionment of volume and strength related costs among retail and wholesale customer classes in an effort to design rates on "normalized" sales volumes will be examined if required. 2. Application of Measured Strength to Billed Volume. To normalize the application of measured concentrations of BOD and TSS to billed monthly volume an evaluation of the process of recognizing a"pound is a pound"will be conducted, as required. 3. Fixed Asset Accounting Requirements. Discussions will be held with Utility Staff to reassess fixed asset tracking capabilities and methodologies pertaining to recording and maintaining fixed asset investment data, the years of historical data available, the level of detail available, the organization of recorded data, and the categories of data captured and summarized in the current fixed asset system for ratemaking. This reassessment will provide an indication of the utility's compliance with GASB 34 reporting requirements. 4. Engineering Assumptions. The applicability and appropriateness of engineering assumptions incorporated in the current wholesale ratemaking methodology will be reviewed. Specifically, assumptions pertaining to the assignment of elements of O&M, depreciation, and plant investment to functional cost components under the WEF "design" and"proportionate use"bases of allocation will be reviewed, as will assumptions pertaining to the assignment of customer class responsibility for volume and strength related costs. Further, the assumptions pertaining to the assignment of costs to be recovered from all customers and the costs to be recovered from retail only customers will also be reviewed. Task 5-Conduct Status Meetings and Presentations Black & Veatch is proposing seven (7) visits to the City's offices to conduct and participate in a number of meetings. These visits and meetings are to include: FMY-6, SD 1. Detailed Study Plan Meeting. On May 1st, Project Team personnel will visit the Department's office to deliver a detailed study plan and collect necessary data and information in order to conduct the rate study. 2. Project Overview Meeting. On May 17th,participate in a project overview meeting with City Staff and the Wholesale Wastewater Advisory Subcommittee to discuss the work plan, study methodology, and review key issues relating to the study. 3. Present O&M Interim Report. On June 14th,meet with City Staff and the Wholesale Wastewater Advisory Subcommittee to present an interim report regarding O&M revenue requirements; and at the same time report on the overall progress of the study. 4. Present Capital Cost Interim Report. On June 28th, meet with City Staff and the Wholesale Wastewater Advisory Subcommittee to present an interim report regarding depreciation expense, rate of return, and the draft rate structure findings; and at the same time report on the overall progress of the study. 5. Present Draft Wholesale Rates. On July 12th, present the draft study results including the proposed wholesale rates (after final adjustments)to City Staff and the Wholesale Wastewater Advisory Subcommittee. 6. Present Draft Wholesale Rates. On July 26th, present the draft study results including the proposed wholesale rates (after final adjustments)to City Staff and the Wholesale Advisory Committee. 7. Present Final Wholesale Rates. On September 25th,meet with City Staff, if required, for presentation of final wholesale rates to City Council for approval. Task 6-Use and Update Existing Rate Model The City's existing rate model will be utilized in performing Tasks 1 - 4 above for the wholesale wastewater rate study, and fii Cher will be revised and updated as appropriate. Specific activities to be accomplished in this task include: 1. Review Model Structure and Revise as Necessary. The City's rate model will be reviewed,revised, and updated as necessary after considering such factors as: a. Conformance with terms and conditions of the uniform wholesale contract. b. Recognition of appropriate elements of cost(and revenue credits if applicable) in determining revenue requirements to be shared by wholesale customers. c. Identification and assignment of costs to cost fimctions in sufficient detail to allow for appropriate allocation to functional cost components. d. Appropriate and adequate recognition of plant investment, grants and contributions including impact fees, accumulated depreciation on plant investment, and other elements of rate base used in determining the return element of cost of service. A-4 e. The basis for apportionment of functionalized volume, strength, and customer costs to customer classes. f. Design of wholesale cost of service rates utilizing the results of previous model calculations. g. After the City has considered recommendations made as a result of efforts in Task 4, the model will be edited/updated as directed by the City to reflect selected additional cost considerations. 2. Update Data. The City's rate model will be updated for a new year of data. 3. Update Model User Instructions. Black & Veatch will update any on-line user instructions in the model and/or for other existing instructional guides to recognize all changes developed as a part of the study. Task 7-Reports/Deliverables The following reports and deliverables are included as a part of the proposed study: 1. Detailed Study Plan. On May 0 prepare and deliver a detailed study plan including a list of schedules to be prepared by the City and/or Consultant and a timeline for project completion. 2. Overview Project Meeting Presentation. Prepare a project overview presentation covering the project scope, schedule, and key issues for the May 17th Wholesale Wastewater Advisory Subcommittee meeting. 3. O&M Interim Report. Prepare an interim report regarding O&M revenue requirements for presentation to the Wholesale Wastewater Advisory Subcommittee on June 14th. 4. Capital Cost Interim Report. Prepare an interim report regarding depreciation expense,rate of return, and the draft rate structure for presentation to the Wholesale Wastewater Advisory Subcommittee on June 28th. 5. Draft Wholesale Rates. Prepare summary of study results and the draft wholesale rates for presentation to the Wholesale Wastewater Advisory Subcommittee on July 12th. 6. Draft Rate Report. Prepare and submit the draft final report to the Fort Worth Water Department by July 25th. 7. Presentation of Draft Wholesale Wastewater Rates. Prepare summary of study results and the draft rate structure for presentation to the Wholesale Advisory Committee on July 26th. OFRCoIWIas FK ''u'��a � . A-5 8. Final Report. By August 31st deliver the final report and 50 signed copies to the Fort Worth Water Department. The final updated computer rate model will be delivered at the same time. 9. Approval of Wholesale Wastewater Rates. If required, provide support to the Fort Worth Water Department when the Wholesale Wastewater Rates are presented to City Council for approval on September 25h. � (N/kU�EC'-0PDD C T tCPP�,�:,C� �° VY Gr `f �3 City of Fort Worth, Texas 4baffor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 5/8/01 **C-18586 60RATE 1 of 2 SUBJECT EMPLOYMENT OF THE BLACK & VEATCH CORPORATION TO CONDUCT A WHOLESALE WASTEWATER RATE STUDY RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a contract with the Black and Veatch Corporation in an amount not to exceed $75,525 for the purpose of preparing � cost of service study for wholesale wastewater rates. DISCUSSION: The uniform wholesale wastewater contracts presently in effect between Fort Worth and its wholesale customers require annual rate revisions with an extensive cost of service study to be performed by a consultant every three years. By contract, the wholesale customers provide Fort Worth with the names of qualified firms and Fort Worth selects a firm. Through an evaluation process, which included involvement of representatives from the wholesale customers, it was recommended that the Black & Veatch Corporation be retained to perform the cost of service study for the FY2001-2002 wholesale wastewater rates. The firm has significant background in rate development and is capable of meeting time schedules established in the wholesale contracts. Principal elements of the proposed study will include: • Review and analyze test year data; and • Establish revenue requirement; and • Allocate costs of service to customer classes; and • Design wastewater rates; and • Conduct periodic status meetings with Wholesale Wastewater Advisory Committee and City of Fort Worth staff; and • Update rate model and user manual. The Black & Veatch Corporation is in compliance with the City's M/WBE Ordinance by committing to 15% M/WBE participation. The City's goal on this project is 15%. City of Fort Worth, Texas qVileor and Council Communication DATE REFERENCE NUMBER LOG NAMEPAGE 5/8/01 **C-18586 60RATE 2 of 2 SUBJECT EMPLOYMENT OF THE BLACK & VEATCH CORPORATION TO CONDUCT A WHOLESALE WASTEWATER RATE STUDY FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Water and Sewer Fund. MG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPROVED Mike Groomer 6140 CITY COUNCIL Originating Department Head: Dale Fisseler 8207 (from) MAY 8 2001 PE45 539120 0709010 $75,525.00 Additional Information Contact: xfj.� 'r` City secretary of ilk Dale Fisseler 8207 City of Fort Worth,Toxss