HomeMy WebLinkAboutContract 53775 r CSC No. 53775
aQR" TA
- Black&Veatch Management Consulting, LLC
BLACK&VEATCH
11401 Lamar Avenue
Overland Park,KS 66211
949-302-6017
Buia@bv.com
March 25,2020
Mrs.Maenica Berry
Assistant Director
Fort Worth Water Department
200 Texas Street
Fort Worth,TX 76102
Subject:Consulting Service Agreement for Fiscal Year 2021 Retail Water and Wastewater Cost of Service
&Rate Study
Dear Mrs. Berry:
Black&Veatch Management Consulting, LLC,("Black&Veatch")is pleased to present the Black&Veatch
endorsed draft of the Consulting Services Agreement to perform the Fiscal Year(FY)2021 Retail Water
and Wastewater Cost of Service&Rate Study for Fort Worth Water Department("Fort Worth Water").
Three original versions of the Consulting Services Agreement are enclosed. Please fully ratify the
Consulting Services Agreements and let us know if you have any questions.
We would like to thank you in advance for the opportunity to serve Fort Worth Water in completing this
important project. Please contact Richard Campbell at 407-913-4430 or CampbellRL@bv.com if you have
any questions or require additional information.
Very truly yours,
Ann Bui
Managing Director
Black&Veatch Management Consulting,LLC
Copied:
Richard Campbell—Managing Director
Robert Chambers-Principal
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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 Dana Burghdoff,its duly
authorized Interim Assistant City Manager, and Black&Veatch Management Consulting,LLC
("Consultant"),a limited liability company,as executed by Robert E.Welch,its duly authorized Senior
Vice President and COO,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
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 Fiscal Year 2021 Retail Water and Wastewater Cost
of Service and Rate Study. 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.
2. TERM.
This Agreement shall commence upon the date of full execution("Effective Date") and shall expire
September 30,2020,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 $65,450 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. If there is any conflict between the terms of Exhibit"Al"and this Section 3, this Section 3 shall
prevail.
CITY SECRET
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FT.WORTH,J,,{
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-gpprWriation 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
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.
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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
or obligations under the assigned portion of the Agreement. If the City grants consent to a subcontract, the
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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 accidentloccurrence
$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
Professional E&O. Either is acceptable if coverage meets all other requirements.
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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-DISCRUMNATION 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.
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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 Black&Veatch Management Consulting,LLC
Attn: Chris Harder,Water Department Director Attn: John Chevrette,President
200 Texas Street 11401 Lamar Avenue
Fort Worth TX 76102-6311 Overland Park,KS 66211
Facsimile: (817) 392-8654 ChevretteJM@bv.com
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 majeurc), 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.
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.
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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. PROHIBITION ON CONTRACTING WITH COMPANIES THAT BOYCOTT ISRAEL
Contractor acknowledges that in accordance with Chapter 2270 of the Texas Government Code,
the City is prohibited from entering into a contract with a company for goods or services unless the contract
contains a written verification from the company that it: (1)does not boycott Israel;and(2)will not boycott
Israel during the term of the contract. The terms "boycott Israel"and"company" shall have the meanings
ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this contract,
Contractor certifies that Contractor's signature provides written verification to the City that
Contractor: (1)does not boycott Israel;and(2)will not boycott Israel during the term of the contract.
25.WARRANTY AND LIMITATIONS
Contractor warrants that it shall perform the Services in accordance with the standards of care and
diligence normally practiced by recognized engineering firms in performing services of a similar nature.
If,during the one year period following the earlier of completion or termination of the Services,it is shown
there is an error in the Services caused by Contractor's failure to meet such standards, and City promptly
notified Contractor in writing of any such error within that period, Contractor shall re-perform, at
Contractor's cost, such corrective services within the original scope of Service as may be necessary to
remedy such error.
Page 7 of 8
IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples this day
of Ani 2020.
CITY OF FORT WORTH
�y(A � ! X Ile
By: l�4
Dana eurghdoff( 4,2U2U)
$y
Dana Burghdoff GNRiS WA40c-
Interim Assistant City Manag/ ,�eRT
w�Tt QI��R
ATTEST:
By:
Mary Kayser C3 .
City Secretary '
Date:
4/6/2020
T�y�^
APPROVED AS TO FORM AND LEGALITY:
By: Czu�L/1-0 ,L BAo2��¢c1tLB
Christa R.Lopez1r-R olds�-
Sr.Assistant City Attorney
No M&C 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.
A&DW I"n
Nam of Employee
fTOM AstmTiYE R.�icLS JM�dtG�a.
Title
BLACK&VEATCH MANAGEMENT CONSULTING,LLC
By: f-cm U
Steve Uhlmansiek,Associate Vice President
Date: March 25,2020
OFFICIAL -
WIT '1(� CITY SECKF-.
By: Print: Michelle Duck FT. WORTH,
Page 8 of 8
Reviewed KAR 3-23-2020
Reviewed PM(Chambers)03/23/2020, R S L
EXHIBIT A
Scope
The Fort Worth Water Department("Fort Worth Water")has requested Black&Veatch Management Consulting,
LLC,("Black&Veatch")to provide consulting services in developing a comprehensive retail water and wastewater
cost of service&rate study. It is anticipated that this project will commence in February 2020 and conclude at the
end of September 2020. Black&Veatch will provide Fort Worth Water with a standard Data Request List as soon as
feasible after receipt of a notice to proceed(or approved purchase order)so the compilation of data/information by
Fort Worth Water can proceed in a timely manner. Black&Veatch's scope of services will be limited as described in
the following tasks.
Fiscal Year 2021 Retail Water and Wastewater Cost of Service.&Rate Study
Phase I - Project Management, Initiation, and Data Collection & Review
Task 'I - Data Collection
Purpose: To obtain data and information necessary to develop a projection of revenue requirements,
customer accounts&volurnes, and other data needed to perform the cost of service analysis and
rate design tasks.
Subtasks: This task will require completion of the following subtasks:
1.1.1 If necessary, Fort Worth Water will issue follow-up data requests to various Divisions or
other City Departments for additional information and/or to clarify any data-related
questions.
Task 2 - Data Review
Purpose: To gain an understanding of the information gathered and ensure that such information is sufficient
enough,and In the correct format,to complete the project.
Subtasks: This task will require completion of the following subtasks:
2.1 Black&Veatch,along with Fort Worth Water,to review available background documents
related to water&wastewater operations;and
« Operating and capital budgets;
* Official Statements or other related documents for current outstanding debt
obligations;
Projected capital outlays for ongoing and future projects;
® Renewal &Replacement,and Operating Cash Reserve requirements;
Current and historical customer information;
Operating statistics(gallons of water pumped,gallons of wastewater treated,
etc.);and
All wholesale&retail service contracts established by Fort Worth Water.
2.2 Black&Veatch will review current water&wastewater rate schedules and policies.
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Task 3 - Identify Goals and Objectives
Purpose: To ensure that rates and charges developed directly correlate to Fort Worth Water's goals and
objectives relating to operations and rate setting policies.
Subtasks: This task will require completion of the following subtasks:
3.1 Black&Veatch, along with Fort Worth Water,will discuss and identify rate-making goals
and objectives including, but not limited to,the following:
Rate and revenue stability;
* Full cost recovery;
* Minimizing rate impact on customers;
Comparability with neighboring utilities;
Equitable application among and within customer classes;
® Ease of implementation;and
® Administrative efficiency.
3.2 Black&Veatch and Fort Worth Water will discuss the conceptual retail rate design
strategy and accompanying retail rate structure based upon the defined objectives. Black
&Veatch will provide guidance on potential retail rate structures,encouraging revenue
stability,as well as contemplated changes to the retail rate structure.
Phase II - Billing Determinants and Revenue Requirements
Task 1 - Identify & Determine Billing Determinants
Purpose: To gain an understanding of the customer base and usage characteristics associated with the water
& wastewater system. The water & wastewater systems' billing determinants in the form of
customer accounts, meters by size, and the associated usage provide the revenues necessary to
operate the systems and are the primary factors utilized in developing proposed user rates and
charges. Fort Worth Water will provide Black & Veatch with guidance on recent growth rate
projections regarding number of customer accounts, and the determination of normalized annual
billing determinants.
Subtasks: This task will require completion of the following subtasks:
1.1 Black &Veatch, along with Fort Worth Water, will review historical customer and billing
data;
1.2 Black&Veatch, along with Fort Worth Water, will identify customer classifications based
on the current and anticipated customer mix;
1.3 Black&Veatch,along with Fort Worth Water,will identify customer usage characteristics
within each customer class;
1.4 Black & Veatch will utilize historical growth statistics and recent trends, in consultation
with Fort Worth Water,to develop a projection of water&wastewater system customers
and volumes into the future;and
1.5 Black&Veatch,along with Fort Worth Water,will determine normalized annual billing
determinants of wastewater usage(volumes)from a winter quarter average for
Residential customer class bills,in consultation with Fort Worth Water.
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Task 2 - Determine Net Revenue Requirements
Purpose: To ensure all costs incurred to provide retail water & wastewater service are recovered from
proposed user rates and charges.
Subtasks: This task will require completion of the following subtasks:
2.1 Black&Veatch,along with Fort Worth Water,will review and identify applicable operating
costs;
2.2 Black& Veatch, along with Fort Worth Water, will determine anticipated non-operating
and capital costs to be recovered through rates(including debt service and related reserves
and coverage requirements, capital outlays, transfers, renewal and replacement costs,
etc.);
2.3 Black & Veatch, along with Fort Worth Water, to determine pro-forma adjustments as
necessary for the fiscal year in which rates will be developed (the"Test Year");and
2.4 Slack & Veatch, along with Fort Worth Water, will review other available sources of
revenue used to offset revenue requirements.
Phase III - Five-Year Projected Operating Results (PY 2021 -2025)
Task 1 - Project Net Revenue Requirements
Purpose: To provide an estimate of expenditures anticipated in future years and establish a basis for
projecting future revenue needs.
Subtasks: This task will require completion of the following subtasks:
1.1 Black&Veatch will determine estimated Test Year revenue requirements from the FY 2021
Proposed Budget, outstanding debt service schedules, and the Proposed Capital
Improvement Program(CIP) Plan,as a basis for performing projections; and
1.2 Black & Veatch, along with Fort Worth Water, will determine inflationary and customer
growth factors to project the revenue requirements through the projection period on a
line-item by line-item basis.
Task 2 - Project User Rate and Charge Revenues
Purpose: To provide an estimate of user rate and charge revenues that will be derived from the application
of proposed rates. The projected customer accounts and volumes will be utilized in conjunction
with any anticipated rate adjustments necessary to meet projected revenue requirements.
Subtasks: This task will require completion of the following subtasks:
2.1 Black&Veatch will apply proposed water&wastewater rates to projected customers and
volumes in order to estimate the revenues that will be generated as a result of normal
customer growth;and
2.2 Black & Veatch will compare projected revenues to estimated revenue requirements in
order to determine the approximate revenue surpluses/deficits for each fiscal year of the
projection period;and
2.3 Fort Worth Water will provide guidance to Black&Veatch on anticipated rate adjustments
for the projection of User Rate and Charge Revenues.
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Task 3 - Update the Retail Water &Wastewater Rate Model
Purpose: To enable the respective models to provide a summary estimate of the cash flows related to
operating the water & wastewater systems for the projection period utilizing a user-friendly
dashboard.
Subtasks: This task will require completion of the following subtasks:
3.1: Retail Rate Model Update - Black&Veatch will update the current retail rate models to
include cash flow statements, as well as a user-friendly dash board,for Fort Worth Water
staff.
3.2 Retail Rate Model Update — Black & Veatch will review all calculations and assumptions
utilized in the Retail Rate Models.
Task 4 - Develop Projected Operating Results
Purpose: To provide a summary estimate of the cash flows related to operating the water & wastewater
systems.
Subtasks: This task will require completion of the following subtasks:
4.1 Black&Veatch will develop a schedule of the projected operating results that provides a
summary of projected revenues and accompanying revenue requirements for each fiscal
year of the projection period;and
4.2 Black&Veatch will utilize summary results to identify the order of magnitude of water&
wastewater rate adjustments required in future years.
Task 5 - Review Results
Purpose: To review the summary estimate of the cash flows related to operating the water& wastewater
systems.
Subtasks: This task will require completion of the following subtasks:
5.1 Black & Veatch and Fort Worth Water staff will meet and review the retail water &
wastewater system operating results over the planning period. Any potential changes to
projected revenue requirements and/or customer growth should be finalized after
obtaining Fort Worth Water's input on Transfers to the General Fund(both the amount of
transfers and timing).
Phase IV - Cost of Service Analysis & Rate Design
Task 1 - Conduct Cost of Service Analysis and Allocation of Revenue
Requirements
Purpose: To establish an equitable retail rate structure, determine the appropriate rate components and
develop a methodology for allocating the net revenue requirements to applicable rate components.
The allocation of net revenue requirements will define the total costs to be recovered through each
component of the rate structure.
Subtasks: This task will require completion of the following subtasks:
1.1 Black&Veatch,along with Fort Worth Water staff, will review the existing rate structure
for equity of application to customers,and consistency with the objectives of the City;
Page 8 of 8
1.2 Black&Veatch will develop a cost of service analysis to fairly and equitably allocate costs
to the various customer classes;
1.3 Black&Veatch will propose retail rate structure modifications as necessary to satisfy the
primary objectives,and Black&Veatch will provide guidance and consultation on potential
retail rate structures encouraging revenue stability and any potential changes to the retail
rate structure;and
1.4 Black&Veatch will establish rate components based on the proposed retail rate structure.
Task 2 - Design Water Rates
Purpose: To calculate a schedule of retail water&wastewater user rates and charges that equitably recover
projected net revenue requirements.
Subtasks: This task will require completion of the following subtasks:
2.1 Black & Veatch will determine monthly charges based on allocated net revenue
requirements and billing determinants,including-
* Customer costs;and
Volumetric rates.
The Customer charges developed above by Black & Veatch will reflect the utility's fixed
cost to serve an individual customer, whether or not that customer is currently taking
water and/or wastewater service or not.
2.2 Black&Veatch will prepare a proof of revenue analysis to ensure that proposed rates, as
applied to estimated customer accounts and volumes,will generate sufficient revenue to
meet the projected net revenue requirements.
2.3 Once the proposed retail rates are developed, they will be evaluated to ensure that they
comply with the goals and objectives set forth by Fort Worth Water.
2.4 Additionally, proposed retail rates will be addressed to identify any potential impact on
system revenues due to an increase in rate levels or changes in rate structure.
Task 3 - Prepare Customer Impact Analysis/Rate Comparisons
Purpose: To assess the impact of proposed retail rates upon various classes of customers with different usage
levels. In addition, the comparability of proposed retail rates to other neighboring utility systems
selected by Fort Worth Water will be addressed.
Subtasks: This task will require completion of the following subtasks:
3.1 Black &Veatch will update the impact assessment analysis section within the retail rate
models for the proposed rates and classes of users identified in the rate study;
3.2 Black &Veatch will update the impact assessment analysis section within the retail rate
models for the proposed rates compared to existing rates;and
3.3 Black&Veatch will prepare rate comparisons of proposed retail ratesversus those of other
neighboring utilities.
Phase V - Prepare Draft and Final Reports
Task 1 - Prepare Draft Report— Provide Electronic Copy
Purpose: Black&Veatch will present the preliminary study findings and recommendations in a draft report
format for review by Fort Worth Water Staff.
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Subtasks: This task will require completion of the following subtasks:
1.1 Black&Veatch will prepare and forward an electronic copy of the draft report in a near-
final format to be reviewed,changed,and/or corrected as necessary by Fort Worth Water
Staff.
Task 2 - Review Draft Report
Purpose: Fort Worth Water Staff and Black&Veatch will discuss and document any necessary changes to the
draft report,as well as its retail rate models.
Subtasks: This task will require completion of the following subtasks:
2.1 Black&Veatch will discuss preliminary findings with Fort Worth Water staff;and
2.2 Black & Veatch will incorporate any changes and/or corrections provided by Fort Worth
Water Staff into the report. Black & Veatch will make any subsequent changes and/or
corrections in the retail rate models.
Task 3 - Prepare Final Report— Provide Electronic Copy
Purpose: To document the overall findings in a complete and concise report for Fort Worth Water.
Subtasks: This task will require completion of the following subtasks:
4.1 Black&Veatch will prepare and deliver an electronic cop of the Final Report;
Consultant Fee
Black&Veatch estimates that to provide the consultative services identified herein for a not-to-exceed fee of
$65,450, inclusive of direct expenses.
Provided below is Black&Veatch's proposed rate schedule for professionals working on this engagement.
Position
Administrative $100
Analyst $185
Senior Analyst $190
Consuftant $200
Manager $250
Principal $275
Director $285
Managing Director $300
Plus direct expenses charged at cost
Any additional work requested by Fort Worth Water, not contained within this scope of work,will be invoiced by
Black&Veatch for the hours agreed upon multiplied by respective billing rates noted above(plus any direct
expenses). No additional work will be undertaken without approval from Fort Worth Water. Invoices will be
submitted monthly based upon the actual work performed in that month and the actual expenses incurred.All
invoices shall be paid within 30 days.
Project Schedule
Black&Veatch`s services shall begin after January 31, 2020 with the work anticipated to be completed by
September 30, 2020.
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