HomeMy WebLinkAboutOrdinance 17557-05-2007Ordinance No. 17557-OS-2007
AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER SEWER
FUND IN THE AMOUNT OF $135,876 AND DECREASING THE UNRESERVED,
RETATINED EARNINGS BY THE SAME AMOUNT, FOR THE PURPOSE OF
EXECUTING A CONTRACT WITH MALCOLM PIRNIE INC. TO PREPARE A
COST OF SERVICE STUDY FOR WHOLESALE WATER RATES AND
PROVIDING A RATES MODELING TOOL FOR BOTH WHOLESALE AND
RETAIL WATER AND WASTEWATER RATES; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2006-
2007 in the Budget of the City Manager, there shall also be increased appropriations in the Water
and Sewer Fund in the amount of $135,876 and decreasing the unreserved, retained earnings by
the same amount, for the purpose executing a contract with Malcolm Pirnie Inc. to prepare a cost of
service study for wholesale water rates and providing a rates modeling tool for wholesale water
rates and providing a rates modeling tool for both wholesale and retail water and wastewater rates.
SECTION 2.
That should any portion, section ar part of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 17142 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance
are in direct conflict with such other ordinances and appropriations, in which instance said
conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4
This ordinance shah take
AS TO
ADOPTED AND EFFECTIVE: _ ~' ~L ~~~r~O ~I
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/22/2007 -Ordinance No. 17557-05-2007
DATE: Tuesday, May 22, 2007
LOG NAME: 60WW STUDY 07 REFERENCE NO.: **C-22131
SUBJECT:
Authorize Execution of a Contract with Malcolm Pirnie Inc:, to Conduct a Wholesale Wastewater
Cost of Service and Rate Study and to Provide a Rates Modeling Tool and Adopt Appropriation
Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing appropriations in the Water and
Sewer Fund, Wastewater Department, in the amount of $69,016.50 and in the Water and Sewer Fund,
Water Department, in the amount of $66,859.50 from available funds and decreasing the unreserved
retained earnings by the same amount; and
2. Authorize the City Manager to execute a contract with Malcolm Pirnie Inc., in the amount not to exceed
$230,876 for the purpose of preparing a cost of service study for wholesale wastewater rates and providing
a rates modeling tool for both wholesale and retail water and 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 Malcolm Pirnie Inc., be retained
to perform the cost of service study for the FY2007-08 wholesale wastewater rates and to provide a rates
modeling tool for both wholesale and retail water and wastewater rate studies. The firm has significant
background in rate development and is capable of meeting time schedules established in the wholesale
contracts.
Currently staff uses four Microsoft Excel-based models and multiple supporting spreadsheets to analyze
and develop wholesale and retail rates for water and wastewater services. The proposal requested that the
selected firm develop a new modeling tool that consolidates the four models into one. Key elements
desired of the new tool include the ability to pull data from multiple sources into the models electronically,
the ability to provide "what ifs scenarios, ease of use, a clear graphic interface to compare different
scenarios, and the ability to handle a 10-year planning horizon. The model developed by Malcolm Pirnie
and in use at other cities meets these requirements.
The cost of the wastewater cost of service study is $97,157.00 of which $95,000.00 is budgeted in the
Wastewater Department Non-Departmental Division. The cost of the modeling tool is $133,719.00 and is
not budgeted. Since the tool will be used for calculating both water and wastewater rates, the cost is
divided between the Water and Wastewater Departments
Logname: 60WW STUDY 07 Page 1 of 2
Malcolm Pirnie Corporation is in compliance with the City's M/1NBE Ordinance by committing to 15 percent
M/WBE participation. The City's goal on this project is 15 percent.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendation and adoption of the
attached supplemental appropriation ordinance, funds will be available in the current operating budget, as
appropriated, of the Water and Sewer Fund. Upon approval, the cash balance in the Water and Sewer
Fund will be $49,388,393.00.
TO Fund/AccountlCenters
PE45 539120 0609010 $66,859.50
PE45 539120 0709010 $69.016.50
FROM Fund/AccountlCenters
PE45 539120 0609010 $66.859.50
PE45 539120 0709010 $164.016.50
Submitted for City Manager's Office by: Marc Ott (8476)
Originating Department Head: S. Frank Crumb (8207)
Additional Information Contact: Melissa Ramon (8245)
Logname: 60WW STUDY 07 Page 2 of 2