HomeMy WebLinkAbout064910 - General - Contract - NewGen Strategies and Solutions, LLCCSC No. 64910
AGREEMENT FOR
2027 WHOLESALE WATER COST OF SERVICE AND RATE STUDY
THIS AGREEMENT is made and executed by and between the City of Fort Worth,
Texas, a Texas municipal corporation, hereinafter called the "City", acting herein by and
through its duly authorized Assistant City Manager, and NewGen Strategies and Solutions,
LLC, hereinafter called the "Consultant," acting herein by and through its duly authorized
President.
WHEREAS, the City desires to perform a Wholesale Water Cost of Service and Rate
Study; and
WHEREAS, the City desires to hire a professional firm knowledgeable and
experienced in conducting such a study; and
WHEREAS, the Consultant has represented that it is knowledgeable and
experienced in conducting such a study.
NOW, THEREFORE, that for and in consideration of the mutual covenants anc
agreements herein contained, the parties hereto do hereby covenant and agree as follows:
SECTION 1.
DEFINITIONS
In this Contract, the following words and phrases shall be defined as follows:
City's Representative means the Director of the Water Department or his designee.
Contract Documents means the Consultant's Draft Scope of Services and all its addenda,
attached as Exhibit "A", this Contract and all other attachments.
Deliverable Document means a report, photograph, electronic file, or an invoice that shows
the completion of one of the work tasks and/or subtasks. Electronic files shall be in Word,
Excel, AutoCad, or similar software and shall be provided as requested by the City.
Notice to Proceed means the letter issued by the City that authorizes Consultant to begin
work. It also authorizes future invoices to be paid.
The City hereby contracts with the Consultant as an independent consultant, and the
Consultant hereby agrees to perform the professional services set out herein in accordance
with standard utility rate -setting practices and policies as well as the prevailing standard of
care delineated in Section 5 hereunder.
SECTION 2. OFFICIAL RECORD
CITY SECRETARY
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SCOPE OF SERVICES
The Consultant shall perform a Wholesale Water System Cost of Service and Rate Study
for the fiscal year 2027 which begins October 1, 2026.
Unless otherwise directed by the City and agreed to by the Consultant, the deliverables shall
include the following as set forth by the City in accordance with Consultant's scope of work
in its Response to the RFP as described in Exhibit A. If there is a discrepancy between the
scope of services listed below and the Response, the list below shall prevail.
1. The Consultant will review all inputs made by Staff into the rate model.
2. The Consultant will review and confirm all calculations by the model related to
establishing revenue requirements:
a) operating expense;
b) depreciation expense; and
c) return on investment.
3. The Consultant will review and confirm all calculations by the model related to
allocating costs of service:
a) allocate cost of service to service functions; and
b) allocate functionalized costs to the wholesale customer class
4. The Consultant will provide the City their review comments, reports, and presentation
materials, including the following specific deliverables, on or about:
a) May 21, 2026: Preliminary Cost of Service and Rates Reports (for
presentation at May 28, 2026 Rates Sub -Committee Meeting),
b) May 28, 2026: 1 st Draft Cost of Service and Rates Reports (for presentation
at June 11, 2026 Rates WCAC Meeting),
c) June 18, 2026: Final Cost of Service and Rates Reports (for communication
due out June 25, 2026).
SECTION 3.
TIME OF PERFORMANCE
The term of this Agreement shall commence upon complete execution and shall terminate
on September 30, 2026, unless extended by mutual written agreement.
SECTION 4.
CO ENSATION TO THE CONSULTANT AND METHOD OF PAYMENT
As compensation for the services required to complete this Project in accordance with the
terms of this Agreement, the City agrees to pay the Consultant on the basis of the hourly
rates set forth in Exhibit B an amount not -to -exceed $46,690.00. This amount shall constitute
full and complete compensation for the Consultant's services under this Agreement,
including all expenditures made and expenses incurred by the Consultant in performing
such services.
Such compensation shall be paid to the Consultant in monthly installments upon submission
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of statements, together with supporting data indicating the progress of the work and services
performed for the month immediately preceding. Invoices will be due upon receipt and
payable within thirty (30) days, subject to certification by the Director of the Water
Department, or his authorized representative, that such work has been performed and the
expenses have been incurred. Such certification shall not be unreasonably withheld or
delayed.
Reimbursable expenses are part of the Not -to -Exceed amount and include, but are not
necessarily limited to sub -contractors' expenses, travel, report production and other out-of-
pocket expenses, which shall be paid based upon actual cost, supported by such
documentation as the City may reasonably request.
SECTION 5.
PROFESSIONAL RESPONSIBILITY AND WARRANTY
Consultant shall perform services consistent with skill and care ordinarily exercised by other
professional consultants under similar circumstances at the time services are performed,
subject to any limitations established by City as to time or expense to be incurred or other
limitations of this Agreement. Consultant further warrants that it will perform all services
under this Agreement in a safe, efficient and lawful manner using industry accepted
practices, and in full compliance with all applicable state and federal laws governing its
activities and is under no restraint or order which would prohibit performance of services
under this Agreement.
City expressly acknowledges and agrees that the Services provided by this Agreement do
not and shall not include: (1) serving as "municipal advisor" for purposes of the registration
requirements of Section 975 of the Dodd -Frank Wall Street Reform and Consumer
Protection Act (2010) or the municipal advisor registration rules issues by the Securities and
Exchange Commission; (2) advising Client, or any municipal entity or other person or entity,
regarding municipal financial products or the issuance of municipal securities, including
advice with respect to the structure, timing, terms, or other similar matters concerning such
products or issuances; (3) the practice of law or other legal services, nor any form of
insurance advisory services.
Consultant has no control over the cost of labor, materials, equipment or services
furnished by others, over the incoming water quality and/or quantity, or over the way City's
plant and/or associated processes are operated and/or maintained. Data projections and
estimates are based on Consultant's opinion based on experience and judgment.
Consultant does not guarantee that actual costs and/or quantities realized will not vary
from the data projections and estimates prepared by Consultant and Consultant will not
be liable to and/or indemnify City and/or any third party related to any inconsistencies
between Consultant's data projections and estimates and actual costs and/or quantities
realized by City and/or any third party in the future, except to the extent such
inconsistencies are the result of Consultant's failure to exercise the skill and care
ordinarily exercised by other professional consultants under similar circumstances.
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SECTION 6.
ESTABLISHMENT AND MAINTENANCE OF RECORDS
Records shall be maintained by the Consultant at its place of business with respect to all
matters covered by this Agreement. Such records shall be maintained for a period of
three (3) years after receipt of final payment under this Agreement
SECTION 7.
AUDITS AND INSPECTIONS
The Consultant agrees that the City shall, until the expiration of three (3) years after the final
payment under this Agreement have access to and the right to examine any directly
pertinent books, documents, papers and records of the Consultant involving transactions
relating to this Agreement. The Consultant agrees that the City shall have access during
normal working hours to all necessary Consultant facilities and shall be provided adequate
and appropriate work space in order to conduct audits in compliance with the provisions of
this section. The City shall give Consultant reasonable advance notice of intended audits.
The Consultant further agrees to include in all its subcontracts hereunder a provisions to the
effect that the subcontractor agrees that the City shall, until the expiration of three (3) years
after the final payment and directly pertinent books, documents, papers and records of such
subcontractor, involving transactions to the subcontract, and further, that City shall have
access during normal working hours to all subcontractor facilities, and shall be provided
adequate and appropriate work space, in order to conduct audits in compliance with the
provisions of this article, and shall give subcontractor reasonable advance notice of intended
audits.
SECTION 8.
INDEMNITY
THE CONSULTANT AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS THE
CITY AND ITS OFFICIALS, AGENTS AND EMPLOYEES FROM AND AGAINST ANY
AND ALL THIRD PARTY CLAIMS, ACTIONS, SUITS OR PROCEEDINGS OF ANY KIND
BROUGHT AGAINST SAID PARTIES TO THE EXTENT CAUSED BY THE NEGLIGENT
ACT, ERROR, OR OMISSION OF THE CONSULTANT OR CONSULTANT'S AGENTS,
EMPLOYEE OR OFFICER, IN THE PERFORMANCE OF SERVICES HEREUNDER. THE
CONSULTANT IS NOT REQUIRED HEREUNDER TO DEFEND, INDEMNIFY AND HOLD
HARMLESS THE CITY OF FORT WORTH AND ITS OFFICIALS, AGENTS AND
EMPLOYEES FROM LIABILITY RESULTING FROM THE NEGLIGENCE OR
WRONGFUL ACTS OF THE CITY OR ANY THIRD PARTY. THE INDEMNITY
REQUIRED HEREUNDER SHALL NOT BE LIMITED BY REASON OF THE
SPECIFICATION OF ANY PARTICULAR INSURANCE COVERAGE IN THIS
AGREEMENT.
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SECTION 9.
COMPLIANCE WITH LAWS
In providing the scope of services outlined herein, the Consultant shall comply with all
applicable laws, ordinances, and codes of the Federal, State and local governments.
Consultant certifies that on the day work is to commence under this Agreement and during
the duration of the Agreement, it shall have and maintain current valid and appropriate
federal and state licenses and permits necessary for the provision of services under this
Agreement.
Consultant also certifies that if it uses any subcontractor in the performance of this
Agreement, that such subcontractor shall have and maintain current valid and appropriate
federal and state licenses and permits necessary for the provision of services under this
Agreement.
SECTION 10.
NON-DISCRIMINATION
During the performance of this Contract, Consultant agrees not to discriminate against any
employee or applicant for employment because of race, religion, color, sex or national origin,
except where religion, sex or national origin is a bona fide occupational qualification
reasonably necessary to the normal operation of the Consultant. Consultant agrees to post
in conspicuous places, available to employees and applicants for employment, notices
setting forth the provisions of the non-discrimination clause.
Consultant also agrees that in all solicitations or advertisements for employees placed by or
on behalf of this Contract, that Consultant is an equal opportunity employer.
Notices, advertisements, and solicitations placed in accordance with federal law, rule or
regulation shall be deemed sufficient for the purpose of meeting the requirements of this
section.
SECTION 11.
MODIFICATION
No modification of this Agreement shall be binding on Consultant or the City unless set out
in writing and signed by both parties. Modifications shall be in the same format as the final
specification showing the change or addition of a task, project schedule, deliverable
document(s), and schedule of payments.
SECTION 12.
PERSONNEL
The Consultant represents that it has, or will secure at its own expense, all personnel
required in performing all of the services required under this Agreement. Such personnel
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shall not be employees of or have any contractual relationships with the City.
All the services required hereunder will be performed by the Consultant or under its
supervision and all personnel engaged in the work shall be qualified and shall be
authorized or permitted under state and local law to perform such services.
The Consultant represents that the Consultant's Project Manager, Richard Campbell, is
available to ensure completion of the scope of services pursuant to this Agreement.
SECTION 13.
ASSIGNABILITY
Neither party hereto shall assign, sublet or transfer its interest herein without prior written
consent of the other party, and any attempted assignment, sublease or transfer of all or any
part hereof without such prior written consent shall be void.
SECTION 14.
DEFAULT
Consultant shall not be deemed to be in default because of any failure to perform under this
Agreement, if the failure arises from causes beyond the control and without the fault or
negligence of Consultant. Such causes shall include acts of God, acts of the public enemy,
acts of Government, in either its sovereign or contractual capacity, fires, flood, epidemics,
quarantine restrictions, strikes, freight embargoes, and unusually severe weather.
If Consultant fails to begin work herein provided for within the time specified above, or to
complete such work within the time specified above, within the true meaning of this
Agreement, City shall have the right to take charge of and complete the work in such a
manner as it may deem appropriate. If City exceeds the costs detailed in the attached
documents, City may deliver to Consultant a written itemized statement of the total excess
costs, and Consultant shall reimburse City for such excess costs without delay.
If, at any time during the term of this Contract, the work of Consultant fails to meet the
specifications of the Contract Documents, City may notify Consultant of the deficiency in
writing. Failure of Consultant to correct such deficiency and complete the work required
under this Agreement to the satisfaction of City within ten (10) days after written notification
shall constitute default, and shall result in termination of this Agreement. All costs and
attorney's fees incurred by City in the enforcement of any provision of this Agreement shall
be paid by Consultant.
The remedies provided for herein are in addition to any other remedies available to City
elsewhere in this Agreement and by law.
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SECTION 15.
TERMINATION OF CONVENIENCE OF CITY
The City may terminate this Agreement for its convenience at any time by giving at least ten
(10) days' notice in writing to the Consultant. In the event of termination pursuant to this
paragraph, Consultant shall be entitled to receive payment for all work completed or in
progress, and for costs reasonably incurred to close out its project services. Compensation
is to include fees, expenses, and liabilities to subcontractors or other third parties.
Consultant will make reasonable attempts to cancel all such liabilities in order to mitigate the
cost to the City.
SECTION 16.
INSURANCE
Consultant shall maintain at its own expense the following insurance:
Commercial General Liability (CGL)
$1,000,000 each occurrence
$2,000,000 aggregate limit
2. Workers' Compensation
Statutory limits
Employer's liability
$100,000 each accident/occurrence
$100,000 Disease - each employee
$500,000 Disease - policy limit
3. Automobile Liability
$1,000,000 each accident on a combined single limit basis
Split limits are acceptable if limits are at least:
$250,000 Bodily Injury per person /
$500,000 Bodily Injury per accident /
$100,000 Property Damage
4. Errors & Omissions (Professional Liability)
$1,000,000 per claim and aggregate
The certificate of insurance shall document the City of Fort Worth, its' Officers, Employees
and Volunteers as an "Additional Insured" on all liability policies. The additional insured
requirement does not apply to Workers' Compensation or Errors & Omissions policies
The certificate of insurance shall provide thirty days (30) notice of cancellation or non -
renewal.
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Example: "This insurance shall not be canceled, limited in scope or coverage,
cancelled or non -renewed, until after thirty (30) days prior written notice has been
given to the City of Fort Worth.
The certificate shall be signed by an agent authorized to bond coverage on behalf of the
insured, be complete in its entirety, and show complete insurance carrier names as listed
in the current A.M. Best Property & Casualty Guide.
All policies shall include a Waiver of Subrogation (Rights of Recovery) in favor of the City
of Fort Worth.
The insurers for all policies must be licensed and/or approved to do business in the State
of Texas. Except for workers' compensation, all insurers must have a minimum rating of
A-: VI in the current A. M. Best Key Rating Guide or have reasonably equivalent financial
strength and solvency to the satisfaction of Risk Management. If the rating is below that
required, written approval of Risk Management is required.
If insurance policies are not written for specified coverage limits, an Umbrella or Excess
Liability insurance for any differences is required. Excess Liability shall follow form of the
primary coverage.
"Unless otherwise stated, all required insurance shall be written on the "occurrence
basis". If coverage is underwritten on a claims -made basis, the retroactive date shall be
coincident with or prior to the date of the contractual agreement and the certificate of
insurance shall state that the coverage is claims -made and the retroactive date. The
insurance coverage shall be maintained for the duration of the contractual agreement and
for three (3) years following completion of the service provided under the contractual
agreement or for the warranty period, whichever is longer. An annual certificate of
insurance submitted to the City shall evidence such insurance coverage.
Policies shall have no exclusions by endorsements, which nullify the required lines of
coverage, nor decrease the limits of said coverages unless such endorsements are
approved in writing by the City. In the event a contract has been bid or executed and the
exclusions are determined to be unacceptable or the City desires additional insurance
coverage, and the City desires the Consultant/engineer to obtain such coverage, the
contract price shall be adjusted by the cost of the premium for such additional coverage
plus 10%.
Certificates of Insurance shall be furnished to the City upon the request of the City.
SECTION 17.
SEVERABILITY
If any portion of this Contract is held to be void, invalid, or otherwise unenforceable, in whole
or part, the remaining portions of this Contract shall remain in effect.
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SECTION 18.
VENUE
Should any action, whether real or asserted, at law or in equity, arise out of the terms of this
Contract, venue for said action shall be in Tarrant County, Texas.
SECTION 19.
NOTICES
All written notices to the respective parties shall be sent by registered mail and be addressed
as follows:
CITY OF FORT WORTH CONSULTANT
Chris Harder Richard Campbell
Water Director Managing Director
City of Fort Worth NewGen Strategies
100 Fort Worth Trail 275 W. Campbell Rd., Suite 440
Fort Worth, Texas 76102 Richardson, Texas 75080
SECTION 20.
CAPTIONS
The captions of this Contract are for informational purposes only and shall not in any way
affect the substantive terms and conditions of the Contract.
SECTION 21.
CONFLICTS
This Contract is the sole agreement between the City and the Consultant and any and all
other prior agreements, whether oral or written, are merged into this Contract and of no
further force or effect.
SECTION 22.
PROHIBITION ON CONTRACTING WITH COMPANIES THAT BOYCOTT ISRAEL
Consultant, unless a sole proprietor, acknowledges that in accordance with Chapter 2271
of the Texas Government Code, if Consultant has 10 or more full time -employees and the
contract value is $100,000 or more, 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, Consultant certifies that Consultant's signature provides
written verification to the City that if Chapter 2271, Texas Government Code
applies, Consultant: (1) does not boycott Israel; and (2) will not boycott Israel
during the term of the contract.
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SECTION 23.
PROHIBITION ON BOYCOTTING ENERGY COMPANIES
Consultant acknowledges that in accordance with Chapter 2274 of the Texas Government
Code -(as added by Acts 2021, 87th Leg., R.S., S.B. 13, § 2), the City is prohibited from
entering into a contract for goods or services that has a value of $100,000 or more, which
will be paid wholly or partly from public funds of the City, with a company (with 10 or more
full-time employees) unless the contract contains a written verification from the company
that it: (1) does not boycott energy companies; and (2) will not boycott energy companies
during the term of the contract. The terms "boycott energy company" and "company" have
the meaning ascribed to those terms by Chapter 2274 of the Texas Government Code
(as added by Acts 2021, 87th Leg., R.S., S.B. 13, § 2). To the extent that Chapter 2274
of the Government Code is applicable to this Agreement, by signing this
Agreement, Consultant certifies that Consultant's signature provides written
verification to the City that Consultant: (1) does not boycott energy companies; and
(2) will not boycott energy companies during the term of this Agreement.
SECTION 24
PROHIBITION ON DISCRIMINATION AGAINST FIREARM
AND AMMUNITION INDUSTRIES
Consultant acknowledges that except as otherwise provided by Chapter 2274 of the
Texas Government Code (as added by Acts 2021, 87th Leg., R.S., S.B. 19, § 1), the City
is prohibited from entering into a contract for goods or services that has a value of
$100,000 or more which will be paid wholly or partly from public funds of the City, with a
company (with 10 or more full-time employees) unless the contract contains a written
verification from the company that it: (1) does not have a practice, policy, guidance, or
directive that discriminates against a firearm entity or firearm trade association; and (2)
will not discriminate during the term of the contract against a firearm entity or firearm trade
association. The terms "discriminate," "firearm entity" and "firearm trade association"
have the meaning ascribed to those terms by Chapter 2274 of the Texas Government
Code (as added by Acts 2021, 87th Leg., R.S., S.B. 19, § 1). To the extent that Chapter
2274 of the Government Code is applicable to this Agreement, by signing this
Agreement, Consultant certifies that Consultant's signature provides written
verification to the City that Consultant: (1) does not have a practice, policy,
guidance, or directive that discriminates against a firearm entity or firearm trade
association; and (2) will not discriminate against a firearm entity or firearm trade
association during the term of this Agreement.
SECTION 25.
CITY -PROVIDED INFORMATION AND SERVICES
Upon reasonable request, City shall furnish Consultant available and actual studies,
reports and other data pertinent to Consultant's services; cooperate in obtaining or
authorizing Consultant to obtain or provide additional reports and data provided there is
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no additional cost to the City; and Consultant shall be entitled to use and rely upon all
such information and services provided by City in performing Consultant's services under
this Agreement.
SECTION 26.
THIRD PARTIES
The services to be performed by Consultant are intended solely for the benefit of the City.
No person or entity not a signatory to this Agreement shall be entitled to rely on
Consultant's performance of its services hereunder, and no right to assert a claim against
Consultant by assignment of indemnity rights or otherwise shall accrue to a third party as
a result of this Agreement or the performance of Consultant's services hereunder.
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Duly executed by each party's designated representative to be effective on the date
subscribed by the City's designated Assistant City Manager.
NewGen Strategies and Solutions, LLC
Richard Campbell
Managing Director
03/05/2026
City of Fort Worth, Texas:
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Jesica McEachern
Assistant City Manager
03/20/2026
Date Date:
Approval Recommended:
Christopher Harder
Chr-pher I—er (Mur 12 2— 11 -239 CDI )
Chris Harder, Director
Fort Worth Water Department
APPROVED AS TO FORM AND
LEGALITY:
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Douglas Black (Mar 18, 2026 17 40:05 CDT)
Douglas W. Black
Sr. Assistant City Y Attorne
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Jannette S. Goodall
CC
City Secretary
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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.
Brian Brown (Mar 12, 2026 11:52:53 CDT)
Brian Brown
Assistant Director OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
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Exhibit A
Consultant's Scope of Work Response to RFP
A. General Scope of Services
The Department is soliciting the services of qualified firms to conduct Wholesale Water
Cost of Service and Rate Studies in accordance with contractual methodology. To meet
the requirements of this request for proposals, the studies shall be performed in
accordance with generally accepted principles for such studies using the Utility Basis, the
existing rate models and schedules, data for the models as provided by City staff,
presentation formats and report formats established in the uniform wholesale contract
between The City of Fort Worth and its Customers. Further, the methodology utilized shall
comply with the terms of the uniform contract between Fort Worth and its wholesale
customers. The City of Fort Worth shall provide a copy of the models, reports,
presentations and all data necessary to perform the study.
B. Specific Scope of Work
The successful firm will review all data and model inputs provided by Staff into the rate
model. The firm will review and confirm all calculations by the model related to:
1. Establishing revenue requirements
a) Operating expense
b) Depreciation expense
c) Return on rate base
2. Allocating costs of service
a) Allocate cost of service to service functions
b) Allocate functionalized costs to the wholesale customer class
3. Calculating and recommending rates and charges.
The successful firm will use the established schedules to prepare presentations and reports
for the WCAC. During the review, the successful firm will also make, as necessary, any
recommendations for changes in the model.
C. Specific Deliverables and Due Dates
Reports and presentations shall follow the general subjects and formats as used by the
Department and include the following specific deliverables on or about:
1. May 21, 2026: Preliminary Cost of Service and Rates Reports (for presentation at
May 28, 2026 Rates Sub -Committee Meeting)
2. May 28, 2026: 1st Draft Cost of Service and Rates Reports (for presentation at
June 11, 2026 Rates WCAC Meeting)
3. June 18, 2026: Final Cost of Service and Rates Reports (for communication due
out June 25, 2026)
D. Special Considerations
The cost of making presentations to the Wholesale Customer Advisory Committee and
Subcommittee should be included in consultant's proposal.
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Role
Project Manager
Technical Advisor
QA/QC
Senior Consultant
:7117ti:3
Consultant's Hourly Rates
Hourly
$400
$310
$415
$205
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FORT WORTH,
City Secretary's Office
Contract Routing & Transmittal Slip
Contractor's Name: NewGen Strategies and Solutions, LLC
Subject of the Agreement: Agreement for 2027 Wholesale Water Cost of Service and Rate Study
M&C Approved by the Council?* Yes❑No M
If so, the M&C must be attached to the contract.
Is this an Amendment to an Existing contract? Yes D No
Ifso, provide the original contract number and the amendment number.
Is the Contract "Permanent"? *Yes ❑ No Iii
If unsure, see backpage for permanent contract listing.
Is this entire contract Confidential? *Yes D No ® If only specific information is
Confidential, please list what information is Confidential and the page it is located.
Effective Date: upon complete execution
If different from the approval date.
Is a 1295 Form required? *Yes❑No A
Expiration Date: September 30, 2026
If applicable.
*If so, please ensure it is attached to the approving M&C or attached to the contract.
Project Number: Ifapplicable.
*Did you include a Text field on the contract to add the City Secretary Contract (CSC)
number? Yes Iii No D
Contracts need to be routed for CSO processing in the followingoder:.
1. Katherine Cenicola (Approver)
2. Jannette S. Goodall (Signer)
3. Allison Tidwell (Form Filler)
*Indicates the information is required and if the information is not provided, the contract will be
returned to the department.