HomeMy WebLinkAboutContract 52570 ��rE�VED CITY SECRETARY
JUL 2 9 2019 CONTRACT NO., 5a570
CI,C H
SECRETAPY
PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into by and
between the CITY OF FORT WORTH (the"City"), a home rule municipal corporation situated in portions
of Tarrant,Parker,Denton,and Wise Counties,Texas,as executed by Valerie Washington,its duly authorized
Assistant City Manager, and Burns & McDonnell Engineering Company, Inc. ("Consultant"), a Missouri
Corporation,as executed by Stephan L.Nalefski, its duly authorized Senior Vice President, each individually
referred to as a"party"and collectively referred to as the"parties."
CONTRACT DOCUMENTS:
The Contract documents shall include the following:
1. This Agreement for Professional Services
2. Exhibit A—Scope of Services,Payment Schedule and Hourly Rates for Optional Services
All Exhibits attached hereto are incorporated herein and made a part of this Agreement for all purposes. In the
event of any conflict between the documents,the terms and conditions of this Professional Services Agreement
shall control.
1. SCOPE OF SERVICES.
Consultant hereby agrees to provide the City with solid waste consulting services.Attached hereto and
incorporated for all purposes incident to this Agreement is Exhibit"A," Scope of Services,more specifically
describing the services to be provided hereunder.
Consultant warrants that it will exercise reasonable skill, care and diligence in the performance of its
services and will carry out its responsibilities in accordance with customarily accepted professional practices
and applicable laws. Except for the express representations and warranties set forth hereinabove and otherwise
in this Agreement,Consultant does not make any other express or implied warranties or representations of any
kind whatsoever relating to this Agreement or the Services,including any implied warranty of merchantability
or fitness for a particular purpose.
2. TERM.
This Agreement shall commence upon the date of full execution("Effective Date")and shall continue
until the completion of Tasks in Exhibit "A", unless terminated earlier or extended in accordance with the
provisions of this Agreement or agreed upon by written amendment to this Agreement by both parties.
3. COMPENSATION.
The City shall pay Consultant an amount not to exceed$131,500 in accordance with the provisions of
this Agreement and the Payment Schedule shown in Exhibit "A," which is incorporated for all purposes
herein.Consultant shall not perform any additional services for the City not specified by this Agreement unless
the City requests and both parties approve in writing the additional scope,schedule,and costs for such services.
Either party may seek a change order for a change in scope schedule and costs related thereto,which must be
agreed upon by both parties by a written amendment to this Agreement. The City shall not be liable for any
additional expenses of Consultant not specified by this Agreement unless the City first approves such expenses
in writing.
OFFICPAL RECORD
CITY SECRETARY
4. TERMINATION.
4.1. Written Notice.
The City or Consultant may terminate this Agreement at any time and for any reason by
providing the other party with 30 days written notice of termination.
4.2 Non-appropriation of Funds.
In the event no funds or insufficient funds are appropriated by the City in any fiscal period for
any payments due hereunder,City will notify Consultant of such occurrence and this Agreement shall
terminate on the last day of the fiscal period for which appropriations were received without penalty
or expense to the City of any kind whatsoever,except as to the portions of the payments herein agreed
upon for which funds shall have been appropriated.
4.3 Duties and Obligations of the Parties.
In the event that this Agreement is terminated prior to the Expiration Date,the City shall pay
Consultant for services actually rendered up to the effective date of termination and Consultant shall
continue to provide the City with services requested by the City and in accordance with this Agreement
up to the effective date of termination.
5. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION.
Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any
existing conflicts of interest related to Consultant's services under this Agreement. In the event that any
conflicts of interest arise after the Effective Date of this Agreement, Consultant hereby agrees promptly to
make full disclosure to the City in writing upon its first knowledge of such conflict. Consultant,for itself and
its officers,agents and employees,further agrees that it shall treat all information provided to it by the City as
confidential and shall not disclose any such information to a third party without the prior written approval of
the City, except to the extent that such disclosure is required by applicable law or court order and then only
after prior notice to and consultation with the City. Consultant shall store and maintain City Information in a
secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City
Information in any way. Consultant shall notify the City promptly if the security or integrity of any City
information has been compromised or is believed to have been compromised.
6. RIGHT TO AUDIT.
Consultant agrees that the City shall, until the expiration of three(3)years after final payment under
this Agreement, have access to and the right to examine at reasonable times any directly pertinent books,
documents, papers and records of the Consultant involving transactions relating to this Agreement at no
additional cost to the City. 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 at least five
(5)business days' advance notice of intended audits.
Consultant further agrees to include in all its subcontractor agreements hereunder a provision to the
effect that the subcontractor agrees that the City shall,until expiration of three(3)years after final payment of
the subcontract, have access to and the right to examine at reasonable times any directly pertinent books,
documents, papers and records of such subcontractor involving transactions related to the subcontract, and
further that City shall have access during normal working hours to all subcontractor facilities and shall be
Page 2 of 8
provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of
this paragraph. City shall give subcontractor reasonable notice of intended audits.
The audit rights conferred by this section shall not permit the City to access records related to the
pricing of fixed-price or lump sum amounts, the build-up of agreed rates or unit prices, or Consultant's
estimating records.
7. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Consultant shall operate as an independent contractor as to
all rights and privileges granted herein, and not as agent, representative or employee of the City. Subject to
and in accordance with the conditions and provisions of this Agreement, Consultant shall have the exclusive
right to control the details of its operations and activities and be solely responsible for the acts and omissions
of its officers, agents, servants,employees, contractors and subcontractors. Consultant acknowledges that the
doctrine of respondeat superior shall not apply as between the City, its officers, agents, servants and
employees, and Consultant, its officers, agents, employees, servants, contractors and subcontractors.
Consultant further agrees that nothing herein shall be construed as the creation of a partnership or joint
enterprise between City and Consultant.
8. LIABILITY AND INDEMNIFICATION.
CONSULTANT SHALL RELEASE, DEFEND, INDEMNIFY AND HOLD HARMLESS
CITY AND ITS OFFICERS,AGENTS AND EMPLOYEES FROM AND AGAINST ALL DAMAGES,
CLAIMS, LOSSES, DEMANDS, SUITS, JUDGMENTS AND COSTS, INCLUDING REASONABLE
ATTORNEY'S FEES AND EXPENSES, FOR PERSONAL INJURIES (INCLUDING DEATH) AND
THIRD-PARTY PROPERTY DAMAGE TO THE EXTENT CAUSED BY THE NEGLIGENT ACT
OR OMISSION OF CONSULTANT, ITS OFFICERS, AGENTS, EMPLOYEES, OR
SUBCONTRACTORS IN THE PERFORMANCE OF SERVICES UNDER THIS AGREEMENT.THE
CONSULTANT SHALL NOT BE OBLIGATED OR LIABLE TO THE CITY FOR ANY CLAIM
ARISING IN CONNECTION WITH THIS AGREEMENT EXCEPT ITS OWN NEGLIGENCE THAT
IS THE FAULT OF THE CONSULTANT, AND/OR ITS AGENTS, EMPLOYEES, OR
SUBCONTRACTORS, OR OTHERS FOR WHOM CONSULTANT IS LEGALLY RESPONSIBLE.
NOTWITHSTANDING THE FOREGOING, CONSULTANT AGREES, TO THE FULLEST
EXTENT PERMITTED BY LAW, TO INDEMNIFY AND HOLD HARMLESS CITY AND ITS
OFFICERS, AGENTS AND EMPLOYEES AGAINST COSTS, DAMAGES, OR LOSSES,
INCLUDING REASONABLE ATTORNEYS'FEES AND EXPENSES,RESULTING FROM CLAIMS
BY THIRD PARTIES FOR PERSONAL INJURIES (INCLUDING DEATH) OR PROPERTY
DAMAGE TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OF
CONSULTANT, ITS OFFICERS, AGENTS, EMPLOYEES, OR SUBCONTRACTORS IN THE
PERFORMANCE OF PROFESSIONAL DESIGN AND ENGINEERING SERVICES UNDER THIS
AGREEMENT. CONSULTANT SHALL NOT BE OBLIGATED TO DEFEND OR INDEMNIFY
CITY AND ITS OFFICERS, AGENTS AND EMPLOYEES FOR THEIR RESPECTIVE
NEGLIGENCE OR WILLFUL MISCONDUCT.
9. ASSIGNMENT AND SUBCONTRACTING.
Consultant shall not assign or subcontract any of its duties,obligations or rights under this Agreement
without the prior written consent of the City. If the City grants consent to an assignment, the assignee shall
execute a written agreement with the City and the Consultant under which the assignee agrees to be bound by
the duties and obligations of Consultant under this Agreement, and Consultant shall have no further liability
Page 3 of 8
or obligations under the assigned portion of the Agreement. If the City grants consent to a subcontract, the
Consultant shall require such subcontractor to execute a written agreement with the Consultant referencing this
Agreement and requiring subcontractor to be bound by duties and obligations substantially similar to those of
the Consultant under this Agreement as such duties and obligations may apply to the subcontractor's scope of
services. The Consultant shall provide the City with a fully executed copy of any such subcontract upon
request,with any financial and proprietary information redacted.
10. INSURANCE.
Consultant shall provide the City with certificate(s)of insurance documenting policies of the following
coverage limits that are to be in effect prior to commencement of any services pursuant to this Agreement:
10.1 Coverage and Limits
(a) Commercial General Liability
$1,000,000 Each Occurrence
$2,000,000 Aggregate
(b) Automobile Liability
$1,000,000 Each accident on a combined single limit basis or
$250,000 Bodily injury per person
$500,000 Bodily injury per occurrence
$100,000 Property damage
Coverage shall be on any vehicle used by the Consultant, its employees, agents,
representatives in the course of the providing services under this Agreement. "Any
vehicle"shall be any vehicle owned,hired and non-owned.
(c) Worker's Compensation
Statutory limits
Employer's liability
$100,000 Each accident/occurrence
$100,000 Disease-per each employee
$500,000 Disease-policy limit
This coverage may be written as follows:
Workers' Compensation and Employers' Liability coverage with limits consistent with
statutory benefits outlined in the Texas workers' Compensation Act(Art. 8308— 1.01 et seq.,
Tex. Rev. Civ. Stat.) and policy limits for Employers' Liability of $100,000 each
accident/occurrence,$500,000 bodily injury disease policy limit and$100,000 per disease per
employee.
(d) Professional Liability(Errors&Omissions)
$1,000,000 Each Claim Limit
$1,000,000 Aggregate Limit
Professional Liability coverage may be provided through an endorsement to the
Commercial General Liability (CGL) policy, or a separate policy specific to
Page 4 of 8
Professional E&O. Either is acceptable if coverage meets all other requirements.
Coverage shall be claims-made, and maintained for the duration of the contractual
agreement and for two(2)years following completion of services provided.An annual
certificate of insurance shall be submitted to the City to evidence coverage.
10.2 Certificates.
Certificates of Insurance evidencing that the Consultant has obtained all required
insurance shall be delivered to the City prior to Consultant proceeding with any services
pursuant to this Agreement. All policies except Workers' Compensation and Professional
Liability shall be endorsed to name the City as an additional insured thereon, as its interests
may appear. All policies except Professional Liability and Employer's Liability shall contain
a Waiver of Subrogation for the benefit of the City of Fort Worth.The term City shall include
its employees, officers, officials, agent, and volunteers in respect to the contracted services.
Any failure on the part of the City to request required insurance documentation shall not
constitute a waiver of the insurance requirement. A minimum of thirty (30) days' notice of
cancellation of coverage shall be provided to the City. Ten (10) days' notice shall be
acceptable in the event of non-payment of premium. Such terms shall be endorsed onto
Consultant's insurance policies.Notice shall be sent to the Risk Manager,City of Fort Worth,
1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same
address.
10.3 Waiver of Subrogation for Property Insurance.
The City and Consultant waive all rights against each other and their officers,officials,
directors, agents, or employees for damage covered by builder's risk insurance during and
after the completion of Consultant's services. If the services result in a construction phase
related to the project, a provision similar to this shall be incorporated into all construction
contracts entered into by the City,and all construction contractors shall be required to provide
waivers of subrogation in favor of the City and Consultant for damage or liability covered by
any construction contractor's policy of property insurance, including builder's risk provided
by such contractor, if applicable.
11. COMPLIANCE WITH LAWS, ORDINANCES,RULES AND REGULATIONS.
Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules and
regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or regulations,
Consultant shall promptly desist from and correct the violation.
12. NON-DISCRIMINATION COVENANT.
Consultant, for itself, its personal representatives, assigns, subcontractors and successors in interest,
as part of the consideration herein, agrees that in the performance of Consultant's duties and obligations
hereunder, it shall not discriminate in the treatment or employment of any individual or group of individuals
on any basis prohibited by law.
Page 5 of 8
13. NOTICES.
Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have
been delivered when(1)hand-delivered to the other party, its agents, employees, servants or representatives,
(2) delivered by facsimile with electronic confirmation of the transmission, or(3)received by the other party
by United States Mail,registered,return receipt requested,addressed as follows:
To The CITY: To CONSULTANT:
City of Fort Worth Burns&McDonnell Engineering Company, Inc.
Attn: Valerie Washington Scott Pasternak
200 Texas Street 8911 Capitol of Texas Highway
Fort Worth TX 76102-6311 Suite 3100
Facsimile: (817)392-8654 Austin, TX 78759
Facsimile: (713)622-0224
14. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement,the City does not waive or surrender
any of its governmental powers.
15. NO WAIVER.
The failure of the City or Consultant to insist upon the performance of any term or provision of this
Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or Consultant's
respective right to insist upon appropriate performance or to assert any such right on any future occasion.
16. GOVERNING LAW/VENUE.
This Agreement shall be construed in accordance with the internal laws of the State of Texas. If any
action, whether real or asserted,at law or in equity, is brought on the basis of this Agreement,venue for such
action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the
Northern District of Texas,Fort Worth Division.
17. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,the validity, legality
and enforceability of the remaining provisions shall not in any way be affected or impaired.
18. FORCE MAJEURE.
The City and Consultant shall exercise their best efforts to meet their respective duties and obligations
as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to
force majeure or other causes beyond their reasonable control (force majeure), including, but not limited to,
compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires,
strikes, lockouts, natural disasters, wars, riots, material or labor restrictions by any governmental authority,
transportation problems and/or any other similar causes.
Page 6 of 8
19. HEADINGS NOT CONTROLLING.
Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a
part of this Agreement.
20. REVIEW OF COUNSEL.
The parties acknowledge that each party and its counsel have reviewed and revised this Agreement
and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this Agreement or exhibits hereto.
21. AMENDMENTS/MODIFICATIONS /EXTENSIONS.
No extension, modification or amendment of this Agreement shall be binding upon a party hereto
unless such extension, modification, or amendment is set forth in a written instrument, which is executed by
an authorized representative and delivered on behalf of such party.
22. ENTIRETY OF AGREEMENT.
This Agreement contains all of the covenants, statements, representations and promises agreed to by
the parties. To the extent of any conflict,this Agreement supersedes the terms,conditions,and representations
set forth in the City's Request for Proposals, Consultant's Proposal and revised cost. No agent of either party
has authority to make, and the parties shall not be bound by, nor liable for, any covenant, statement,
representation or promise not set forth herein. The parties may amend this Agreement only by a written
amendment executed by both parties.
23. SIGNATURE AUTHORITY.
The person signing this agreement hereby warrants that he/she has the legal authority to execute this
agreement on behalf of the respective party,and that such binding authority has been granted by proper order,
resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this
warranty and representation in entering into this Agreement.
24. LIMITATION OF LIABILITY.
NEITHER THE CITY NOR CONSULTANT SHALL BE LIABLE TO THE OTHER FOR ANY
INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES INCLUDING,
WITHOUT LIMITATION, LOSS OF PROFITS OR REVENUE, LOSS OF PRODUCTION, COSTS
OF CAPITAL NON-OPERATION OR INCREASED EXPENSE OF OPERATION OF OTHER
EQUIPMENT OR SYSTEMS, INJURED REPUTATION, COSTS OF SUBSTITUTE EQUIPMENT,
FACILITIES OR SERVICES, DOWNTIME COSTS, OR CLAIMS BY CUSTOMERS, WHETHER
LIABILITY IS BASED ON CONTRAT, WARRANTTY, NEGLIGENCE, STRICT LIABILITY OR
OTHERWISE. SUCH WAIVER SHALL NOT INCLUDE PENALTIES ENFORCED BY
GOVERNMENTAL OR REGULATORY AGENCIES WITH JURISDICTION, SUCH AS THE
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY (TCEQ), TO THE EXTENT CAUSED
BY CONSULTANT'S NEGLIGENT PERFORMANCE OF SERVICES UNDER THIS AGREEMENT.
TO THE FULLEST EXTENT PERMITTED BY LAW, AND NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, THE TOTAL LIABILITY, IN THE AGGREGATE, OF
CONSULTANT, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND
Page 7 of 8
SUBCONSULTANTS, OR ANY OF THEM, TO THE CITY AND ANYONE CLAIMING BY,
THROUGH OR UNDER THE CITY, FOR ANY AND ALL CLAIMS, LOSSES, LIABILITIES,
COSTS OR DAMAGES WHATSOEVER ARISING OUT OF,RESULTING FROM OR IN ANY WAY
RELATED TO THE SERVICES OR THIS AGREEMENT FROM ANY CAUSE INCLUDING, BUT
NOT LIMITED TO, THE NEGLIGENCE, PROFESSIONAL ERRORS OR OMISSIONS, STRICT
LIABILITY, BREACH OF CONTRACT, OR WARRANTY (EXPRESS OR IMPLIED) OF
CONSULTANT,ITS OFFICERS,DIRECTORS,EMPLOYEES,AGENTS OR SUBCONSULTANTS,
OR ANY OF THEM, SHALL NOT EXCEED ONE MILLION DOLLARS ($1,000,000). THE
PARTIES AGREE THAT SPECIFIC CONSIDERATION HAS BEEN GIVEN BY THE
CONSULTANT FOR THIS LIMITATION AND THAT IT IS DEEMED ADEQUATE.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples this a-1 -day
of julm , 201/.9
CITY OF FORT WORTH
By: V
Valerie Washington
Assistant City Manager "'`'
ti17G111 ,A; �O.
Date: -
ATTCj
By: 'Rr fr
a ys M&C: C-aq 17 5 U145/19
City cretary
1295: 2019-503053
APPROVED AS TO F M AND LEGALITY:
By:
Christa R. Lopez- olds
Sr. Assistant City Attorney
44&6 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.
N of Employe
IMe
OFFICIAL RECORD
CITY SECRETARY
FT. WORTWIX"
SIGNATURE PAGE FOR
CONSULTANT CONTRACT
BURNS& MCDONNELL ENGINEERING
ENGINEERING COMPANY,INC.
By: =�L ^-�
Stephan L.Nalefski
Vice President
Date: July 8 2019
WITNESS:
Print: Tami Daniel
E
RDRYX
EXHIBIT A
Page 8 of 8
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 IA: 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
BURNS`M�DONNELL_ City of Fort Worth: Solid Waste Financial an
Contractual Consulting Services
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.
TASK 18: 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 1C: KICK-OFF MEETING & PROJECT MANAGEMENT
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?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:
Refine
► Schedule and participate in periodic conference calls as needed to F Understanding
discuss project matters(as identified in the specific tasks of this
AF
scope of work) I Create I Confirm City
Communications
Provide periodic status updated via electronic format Pathways Policies
► Be available for other communication(s)as needed
MEETING
Confirm
PHASE 1 DELIVERABLES
► Preliminary data request L Schedule Information 2
► Electronic copies of the kick-off meeting agenda,handouts,and
follow-up summary
P. Participation of Burns&McDonnell project manager and key staff Assignments
in conference call and on-site kick-off meeting -A
The kick-of meeting will provide a forum for
establishing clear communication for the
project.
City of Fort Worth: Solid Waste Financial an
BURNS`MSDONNELL_
Contractual Consulting Services
Phase 1: 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 1A: 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(O&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 way among the programs being evaluated,which will be critical given the broad range of
services and operations.
TASK 2A DELIVERABLES
► Meeting with City staff
► A Test Year revenue requirement
BURNS`MSDONNELL. City of Fort Worth: Solid Waste Financial and Contractual
Services AA
► Calculation of the Test Year cost of service
► Conference call with City staff to discuss results of Task 2A
TASK 213: FORECASTED (OST OF SERVI(E 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 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 -iistorical 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.
BURNS`M�DONNELL_ City of Fort Worth: Solid Waste Financial and Contractual
Services
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.
TASK 2B DELIVERABLES
► 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: LANDFILL AND RECYCLING FINANCIAL ANALYSIS
Burns&McDonnell will evaluate the following key issues associated with the financial future of the City's landfill.
Evaluate Future Landfall 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 an 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
BURNS`M�DONNELL_ City of Fort Worth: Solid Waste Financial and Contractual
Services
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.
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 3B: 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: DEVELOP OPINION ON THE OPTIMAL NUMBER OF COLLECTION DISTRICT'.,
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 comple
for the City of Tulsa(which serviced approximately 115,000 households at the time).
BURNS`M�DONNELL_ City of Fort Worth: Solid Waste Financial and Contractual
Services
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.
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.
PHASE 3 DELIVERABLES
► 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 4B: 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 4 DELIVERABLES
► Electronic version of the Draft Report
► One conference call to discuss the Draft Report
P. 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
BURN:3`M�DOINNELL City of Fort Worth: Solid Waste Financial and Contractual
Services AA
► 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 DELIVERABLES
► To be determined
BURNS`M�DONNELL_ City of Fort Worth: Solid Waste Financial and Contractual
Services AA
FEE
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 1—4 will be invoiced on a percent complete basis. Phase 5 tasks will be
invoiced on a time and expense basis(based on the rate schedule).
Task Fee
Phase 1: Project Initiation&Management
TASK 1A: INITIAL DATA REQUEST& REVIEW $1,700
TASK 1B: ESTABLISH A PROJECT TASK FORCE $0
TASK 1C: KICK-OFF MEETING&PROJECT MANAGEMENT $7,400
Phase 2:Cost of Service&Rate Study
TASK 2A:CURRENT COST OF SERVICE ANALYSIS $17,200
TASK 2B: 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 Review $4,100
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 Sector $6,700
Evaluate Financial Assurance for the Southeast Landfill $4,000
Evaluate Financial Impacts from Eliminating Residential Recycling $6,300
Phase 3:Evaluation of Residential Collection Contract
TASK 3A:DATA ANALYSIS, FIELD OBSERVATIONS AND CONTRACTOR INTERVIEW $11,200
TASK 3B: 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
Phase 4:Report Preparation and Presentation
TASK 4A: DRAFT REPORT $11,700
TASK 4B: FINAL REPORT $5,600
Phase 5:Additional Services $4,200
Total $131,500
BURNS`MSDONNELL. City of Fort Worth: Solid Waste Financial and Contractual
Services AA
The budget allowance for the additional services is$4,200 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.
Position Hourly Billing Rates
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$4.75 per hour technology charge for each hour. These rates are effective through December 31,2019.
BURNS`M�DONNELL_ City of Fort Worth: Solid Waste Financial and Contractual
Services 4A
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORT
COUNCIL ACTION: Approved on 6/25/2019
REFERENCE ,, 23SOLID WASTE FINANCIAL &
DATE: 6/25/2019 NO.: C-29173 LOG NAME: CONTRACT CONSULTING
SERVICES
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Professional Services Agreement for the Evaluation of the City's Solid Waste
Services Contracts with Burns & McDonnell for the Code Compliance Department in the
Amount of$131,500 (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize a Professional Services Agreement for the
Evaluation of the City's Solid Waste Services Contracts with Burns & McDonnell for the Code
Compliance Department in the Amount of$131,500.
DISCUSSION:
In 2003, the City implemented its current Solid Waste Management Program with specific innovative
program designs, such as garbage and recycling carts, and contractor performance measures. The
majority of the contracts have a term of 10 years ending in 2013, with three options each to renew for
another 10 years. City Staff was assisted by Science Applications International Corporation (currently
Burns & McDonnell), a solid waste consultant, with evaluating our current contracts and benchmark
comparable market rate service contracts. It was determined, the City would be better served through
negotiating a second term of the residential solid waste services contracts, which was completed with
Waste Management. In advance of the next renewal period (2023-2033) and to help decide whether
the City should enter into a renewal term with or without modifications to the contracts, or to seek
other options, City Staff is recommending that a thorough evaluation of the solid waste contracts and
contractors' performance under the contracts begin by an independent consultant.
The Code Compliance Department Solid Waste Division proposes to use the services of Burns &
McDonnell to perform such evaluation. Burns & McDonnell will evaluate the City's residential solid
waste and recycling collection contracts to determine whether to renegotiate the solid waste contracts
with the City's current contractor(s) or to procure the services or new services the City deems
necessary, and develop a cost of service study that will provide a long-term financial plan for the City.
Included in this evaluation, Burns& McDonnell will make field observations and conduct contractor
interviews, review the contracts and strategic procurement issues that staff has identified, perform a
market analysis of the services in place and provide a final report of Burns & McDonnell's
recommendations.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the recommendations, funds are available in
the capital budget, as appropriated, of the Solid Waste Capital Projects Fund and that, prior to an
expenditure being made, Code Compliance Department has the responsibility to validate the
availability of funds.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=27135&councildate=6/25/2019 7/23/2019
M&C Review Page 2 of 2
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I ID Year Chartfield 2
Submitted for City Manager's Office by: Valerie Washington (6199)
Originating Department Head: Brandon Bennett(6345)
Additional Information Contact: Robert Smouse (5153)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=27135&councildate=6/25/2019 7/23/2019