HomeMy WebLinkAboutContract 30111 CITY SECRETARY,
.�ONTRACT NO . mol
STATE OF TEXAS )
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT )
THIS AGREEMENT is made and executed by and between the City of Fort Worth,
Texas, a municipal corporation situated in Tarrant County, Texas, hereinafter called the
"City", acting herein by and through Marc Ott, its duly authorized Assistant City Manager, and
Black and Veatch Corporation, hereinafter called the "Consultant."
WITNESSETH:
WHEREAS, the City wishes to engage the Consultant to perform a wholesale
wastewater cost of service and rate study; and
WHEREAS, the Consultant is willing to perform such wastewater cost of service and
rate study for the City; and
WHEREAS, the City desires to engage the Consultant to render certain services in
connection therewith and the Consultant is willing to provide such services;
NOW, THEREFORE, that for and in consideration of the mutual covenants and
agreements herein contained, the parties hereto do hereby covenant and agree as follows:
SECTION 1. Services of the Consultant: The City hereby contracts with the Consultant as an
independent consultant, and the Consultant hereby agrees to perform the professional services
set out herein in accordance with standard utility rate-setting practices and policies.
SECTION 2. Scope of Services: The Consultant shall conduct a wholesale wastewater cost of
service rate study and develop wholesale wastewater rates for fiscal year beginning October 1,
2004 in accordance with Attachment A. The Consultant shall not be responsible for additional
services except by written amendment to this agreement signed by both parties hereto.
SECTION 3. Time of Performance: Services of the Consultant shall commence upon
execution of this Agreement. Unless otherwise directed by the City and agreed to by the
Consultant, the timing of interim deliverables shall follow the schedule as set forth by the City,
as follows:
• By June 10, 2004 - First interim review with Wholesale Advisory Commit-
tee (Operations & maintenance cost analysis)
• By June 24, 2004 - Second interim review with Wholesale Advisory
Committee (Depreciation, rate of return analysis, and draft rate structure
recommendations).
Consultant shall complete and deliver the draft report on or before July 22, 2004, the final
report on or before August 31, 2004, and shall complete all other services on or before
September 30, 2004, unless an extension of time is granted by the City in writing.
The City recognizes that portions of the Consultant's work and the completion thereof are
predicated upon timely performance and completion of certain activities required to be
performed by the City. Accordingly, delays in Consultant' s performance and completion that
occur due to circumstances and events beyond the reasonable control of the Consultant will give
rise to the need for an extension of time for the completion of Consultant's work. Consent for
extension of time for performance as a result of the foregoing shall not be unreasonably
withheld or delayed.
SECTION 4. Compensation to the C,onsnitant and Method of Pa ent: As compensation for
the services required to complete this Project in accordance with the terms of this Agreement,
the City agrees to pay the Consultant on the basis of the hourly rates set forth in this section an
amount not to exceed $95,550. This amount shall constitute full and complete compensation
for the Consultant's services under this Agreement, including all expenditures made and
expenses incurred by the Consultant in performing such services, and which amount is
hereinafter referred to as the "Basic Fee."
The Basic Fee shall be paid to the Consultant in monthly installments upon submission of
statements, together with supporting data indicating the progress of the work and services
performed for the month immediately preceding. Invoices will be due upon receipt and payable
within 30 days, subject to certification by the Director of the Water Department, or his
authorized representative, that such work has been performed and the expenses have been
incurred. Such certification shall not be unreasonably withheld or delayed.
Compensation for the services rendered by the Consultant as set forth in Attachment A, entitled
"Basic Services," shall be paid at the following rates:
Project Director $250
Project Manager $175
Senior Financial Analyst $100
Clerical Staff $ 65
DBE Subcontractor $145
These rates are effective for all work completed prior to October 1, 2004. After such time,
these rates are subject to change based on written agreement by both parties.
Reimbursable expenses are part of the Basic Fee and include, but are not necessarily limited to
subcontractor expenses, travel, report production and other out-of-pocket expenses, which shall
be paid based upon actual cost, supported by such documentation as the City may reasonably
request.
The undersigned representatives of the City hereby warrant and represent that thelegislative
authority of the City has complied with all necessary rules and regulations' and statutory
provisions in connection with the authorization of this Agreement and the amount to be paid
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hereunder and that the funds necessary to meet its contractual obligations under this agreement
have been appropriated for this purpose and are free from any previous encumbrance and are
being held in the appropriate fund for the purpose of this Agreement.
SECTION 5. Establishment and Maintenance of Records: Records shall be maintained by the
Consultant at its place of business with respect to all matters covered by this Agreement. Such
records shall be maintained for a period of three (3) years after receipt of final payment under
this Agreement.
SECTION 6. Audits and Inspections: The Consultant agrees that the City shall, until the
expiration of three (3) years after the final payment under this Agreement have access to and the
right to examine any directly pertinent books, documents, papers and records of the Consultant
involving transactions relating to this Agreement. The Consultant agrees that the City shall
have access during normal working hours to all necessary Consultant facilities and shall be
provided adequate and appropriate 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 7. 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 anyone for whom it is legally liable in the
performance of services hereunder. The Consultant is not required hereunder to defend,
indemnify and hold harmless the City of Fort Worth and its officials, agents and employees
from liability resulting from the negligence or wrongful acts of the City or any third party. For
the purposes of this section, the term "third party" does not mean officers, subconsultants, the
agents or employees of the Consultant. The indemnity required hereunder shall not be limited
by reason of the specification of any particular insurance coverage in this Agreement.
The Consultant shall have the right to defend against any and all such claims, actions, suits or
proceedings with counsel of its own choosing and shall have the right to settle and or
compromise such matter as the Consultant deems appropriate. The City shall provide
Consultant with written notice of such claims within 10 business days after receipt of same by
the City.
The City agrees that it will cooperate with the Consultant in the defense of any such matter
including, but not limited to, providing necessary documents and personnel to testify.
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SECTION 8. Limitations: To the fullest extent permitted by law, Consultant shall not be
liable to City for any special, indirect, or consequential damages resulting in any way from the
performance of the services.
To the fullest extent permitted by law, Consultant's total liability to City for all claims, losses,
damages, and expenses resulting in any way from the performance of the services shall not
exceed five hundred thousand dollars ($500,000).
SECTION 9. Compliance with Laws: In providing the scope of services outlined herein, the
Consultant shall comply with all applicable laws, ordinances, and codes of the Federal, State
and local governments.
SECTION 10. Non-Discrimination: The Consultant agrees that its employees and applicants
for employment and those of any labor organization, subconsultants, or employment agency in
either furnishing or referring employee applicants to the undersigned are not discriminated
against as prohibited by the terms of City Ordinance No. 7278 as amended by City Ordinance
No. 7400.
SECTION 11. M/WBE Goals: The Consultant acknowledges its commitment to meet the City
of Fort Worth's goals for Minority and Women Business Enterprise (M/WBE) participation in
City contracts.
SECTION 12. Changes: The City may, from time to time, request changes in the Scope of
Services of the Consultant to be performed hereunder. Such changes, including any increase or
decrease in the amount of the Consultant's compensation, which are mutually agreed upon by
and between the City and the Consultant shall be incorporated in written amendments to this
Agreement.
SECTION 13. Personnel:
A. The Consultant represents that it has, or will secure at its own expense, all personnel
required in performing all of the services required under this Agreement. Such
personnel shall not be employees of or have any contractual relationships with the
City.
B. All the services required hereunder will be performed by the Consultant or under its
supervision and all personnel engaged in the work shall be qualified and shall be
authorized or permitted under state and local law to perform such services.
C. The Consultant represents that the Consultant's Project Director, Mr. J. Rowe
McKinley, is available for the direction of the Basic Services indicated in
Attachment A.
SECTION 14. Assignability: Neither party hereto shall assign, sublet or transfer its interest
herein without prior written consent of the other party, and any attempted assignment, sublease
or transfer of all or any part hereof without such prior written consent shall be void.
SECTION 15. Termination for Cause. If through any cause, unless it is caused by another
party or due to an act beyond the control of the Consultant, the Consultant shall fail to
materially fulfill in a timely and proper manner its obligations under this Agreement or if the
Consultant shall materially violate any of the covenants, agreements or stipulations of this
Agreement, the City shall thereupon have the right to terminate this Agreement by giving
written notice to the Consultant of such termination and specifying the effective date thereof,
with such effective date not to occur earlier than seven days after the notice date. The
Consultant shall have seven calendar days to cure such alleged defaults. Unless such alleged
defaults are cured and accepted by the City within this seven-day period, the Consultant shall
immediately cease all work. In such event, all finished or unfinished documents, data, maps,
studies, surveys, drawings, models, photographs and reports prepared by the Consultant under
this Agreement shall, at the option of the City, become its property, and the Consultant shall be
entitled to receive compensation in accordance with the terms of this contract for all work
completed in accordance with the terms of this contract up to the date of termination.
Performance shall be defined in accordance with the terms of this contract and all attachments.
Compensation is to include fees and expenses incurred by the Consultant as defined in Section
4 of this Agreement. Nothing herein shall constitute a waiver of any right, at law and at equity,
which the City may have if the Consultant is in default, including the right to bring legal actions
for damages or force the specific performance of this contract. The Consultant's work papers
are specifically excluded from the list of documents which become the City's property under
this Section. However, the City does have the right to make copies, at its own expense, of the
Consultant's work papers.
SECTION 16. Termination of Convenience of City: The City may terminate this Agreement
for its convenience at any time by giving at least fifteen (15) days' notice in writing to the
Consultant. In the event of termination pursuant to this paragraph, Consultant shall be entitled
to receive payment for all work completed or in progress, and for costs reasonably incurred to
close out its project services. Compensation is to include fees, expenses, and liabilities to
subconsultants or other third parties. Consultant will make reasonable attempts to cancel all
such liabilities in order to mitigate the cost to the City. If this Agreement is terminated due to
the fault of the Consultant, Section 14 hereof relative to termination shall apply.
SECTION 17. Insurance: The Consultant shall maintain at its own expense (1) comprehensive
general liability insurance, (2) professional liability insurance for errors and omissions, and (3)
worker's compensation insurance, which insurance shall provide coverage for liabilities or
claims for damages resulting solely from services performed or undertaken by the Consultant
hereunder. Certificates of Insurance shall be furnished to the City upon the request of the City.
SECTION 18. Severability: If any portion of this agreement is held to be void, invalid, or
otherwise unenforceable, in whole or part, the remaining portions of this agreement shall
remain in effect.
SECTION 19. Venue: Should any action, whether real or asserted, at law or in equity, arise out
of the terms of this contract, venue for said action shall be in Tarrant County, Texas.
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SECTION 20. Agreement Amendment: This instrument represents the entire understanding
between the City and the Consultant in respect to the Project, supersedes any and all prior
written or oral negotiations of agreements between the parties, and may only be modified in
writing signed by both parties.
SECTION 21. Notices: All written notices to the respective parties shall be sent by registered
mail and be addressed as follows:
CITY OF FORT WORTH CONSULTANT
Mr. Marc Ott Mr. J. Rowe McKinley
Assistant City Manager Director
City of Fort Worth Black and Veatch Corporation
1000 Throckmorton 11401 Lamar
Fort Worth, Texas 76102 Overland Park, Kansas 66211
SECTION 22. Captions: The captions of this Agreement are for informational purposes only
and shall not in any way affect the substantive terms and conditions of the Agreement.
SECTION 23. Conflicts: This Agreement is the sole agreement between the City and the
Consultant and any and all other prior agreements, whether oral or written, are merged into this
Agreement and of no further force or effect.
EXECUTION OF AGREEMENT
IN TESTIMONY WHEREOF, the City of Fort Worth, Texas, has caused this instrument to be
signed in its name and on its behalf by its Assistant City Manager, and attested by its City
Secretary, with the Corporate Seal affixed; and the Consultant has also properly executed this
instrument in triplicate copies each of which is deemed an original.
Black and Veatch Corporation: F
Mr. William C. Cole
Vice President
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Date
TActing
Fort Worth Texas:
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By.
Glover Marc Ott
�sJ�fit► City Secretary Assistant City Manager
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Date
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APPROVAL UCOM ED:
Dale A. Fisseler, P.E., Director
Fort Worth Water Department
AlOV D AS TO FORM AND EGALITY:
David L. Yett
City Attorney
Contract Aut oorization
Date
�V ally
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ATTACHMENT A
CITY OF FORT WORTH, TEXAS
FORT WORTH WATER DEPARTMENT
WHOLESALE WASTEWATER COST OF SERVICE AND RATE STUDY
The Consultant shall conduct a wholesale wastewater cost of service and rate study
for Fiscal Year 2005 (year beginning October 1, 2004) in accordance with the scope of
service task plan presented below. The scope of services includes basic elements covering
revenue requirements determination, cost of service allocations, and rate design. In
addition, it includes review of the City's rate model as well as meetings/presentations and
the submittal of reports. Further, the scope ensures that the wholesale wastewater rate study
will be performed in accordance with generally accepted principles for wastewater rate
studies and that the methodology utilized will comply with the terms of the uniform contract
between the City and its wholesale customers.
In addition, Consultant will make a review of the appropriate level of the administrative
service charges which the City assesses customers for specific services. Such service
charges include, but are not limited to, fees for laboratory testing, pretreatment monitoring,
returned check charges, reactivation fees, and various other services.
Task 1 -Establish Cost of Service (Revenue Requirements)
The cost of service, or revenue requirements, to be shared by the City's wholesale
customers for the "test year" ending September 30, 2003, will be established utilizing the
rate methodology contained in the uniform wholesale contract between the City and
wholesale customers. Revenue requirements will be determined on a utility basis and will
include operating and maintenance (O&M) expense, depreciation expense, return on
investment, and street rental fees. Specific activities to be accomplished in this task include:
1. Operating & Maintenance Expense. Test year O&M expense to be shared will
include historical costs for the fiscal year ending September 30, 2003, adjusted for
known and measurable changes to expense categories, such as salary and wages,
employee benefits, power and chemical costs, non-recurring costs recovered over a
related benefit period, etc.
2. Depreciation Expense. Annual depreciation expense to be shared will be based on
available plant investment data from the Fort Worth Fixed Asset Tracking System,
as of March 31, 2004, net of grants and contributions, applied to appropriate annual
depreciation rates as utilized in the most recent wholesale wastewater cost of service
study.
3. Return on Investment and Street Rental Fee. Return on investment to be shared will
be calculated on investment in facilities providing water service to the wholesale
customers (or rate base). Investment will include plant inv net of
accumulated depreciation, grants and contributions, plus construction work
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progress at March 31, 2004, including recognition of inventories and working
capital. Return will be determined by applying a rate of return equal to the weighted
average imbedded cost of outstanding debt plus 1-1/2 percent to plant investment.
The street rental fee to be shared will be calculated as 4 percent of the sum of O&M,
depreciation, and return on investment attributable to wholesale wastewater service.
Task 2 -Allocate Cost of Service to Customer Classes
The wholesale customer share of the test year cost of service will be developed by
first allocating the elements of cost of service identified in Task 1 to functional cost
components and then to wholesale customers based on their proportional share of units of
service associated with each functional cost category. Specific activities to be
accomplished in this task include:
1. Allocate Cost of Service to Wastewater Service Functional Cost Components.
O&M, depreciation, and return will be allocated to the various costs of service
components which constitute a functional classification of service provided to
wastewater customers. The allocation methodology endorsed by the WEF in its
Financing and Charges for Wastewater Systems manual will be used to develop the
allocations to functional cost components consisting of volume/capacity, strength
(BOD & TSS), customer billing,customer metering, and retail only parameters. The
return element will be based on allocated net plant investment or rate base.
2. Allocate Functionalized Costs to the Wholesale Customer Class. The wholesale
customer class will be allocated their share of the functional cost of service
component costs based on their responsibility for each functional component cost as
determined by their proportional share of related units of service associated with
each cost function.
Task 3 -Design Wholesale Wastewater Rates for Fiscal Year 2004-2005
Percentage allocations and unit costs developed in connection with the cost of
service methodology/allocation task (Task 2) will serve as the basis for the development of
cost of service based rates for the wholesale customers. As discussed in Task 6, the City's
existing rate model will be revised as appropriate and will be utilized in performing this
task. This rate design process will adhere to the rate structure requirements of the
Wholesale Uniform Wastewater Contract. Specific activities to be accomplished in this task
include:
1. Recommend Wholesale Rate Pricing Structure. Unit costs developed in Task 2 will
be utilized to develop a schedule of proposed charges and will be compared with
existing charges. The proposed charges, at a minimum, will include the following
elements:
Volume Charge - $ per 1,000 gallons
BOD Charge - $ per pound
TSS Charge - $ per pound
Customer Charge - $ per month
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Task 4- Provide Recommendations for Changes in Cost/Rate Methodology
The City's current cost of service - rate methodology will be reviewed for: (1)
adherence to the terms and conditions of the uniform wholesale contract; (2) correct and
consistent application of the utility basis cost of service concepts and principles; and (3)
recognition of special conditions and factors which may influence the wholesale rate design
causing significant fluctuations from year to year in calculated rates. After discussions with
City staff and the Wholesale Wastewater Advisory Subcommittee, studies may be
conducted on flow normalization, strength billing assignments, and other
assumptions/applications incorporated in the ratemaking methodology if considered
necessary. Based upon this review and any recommendations resulting therefrom for
making changes in the wholesale rate calculation methodology, modifications will be made
as appropriate, pertaining to each of the following areas:
1. Normalization of Wastewater Volumes. The influence of dry and wet weather years
on the annual sales volumes of customers can cause wide variations in calculated
rates from year to year. The feasibility of reflecting several years of usage history in
the apportionment of volume and strength related costs among retail and wholesale
customer classes in an effort to design rates on "normalized" sales volumes will be
examined if required.
2. Application of Measured Strength to Billed Volume. To normalize the application
of measured concentrations of BOD and TSS to billed monthly volume an
evaluation of the process of recognizing a "pound is a pound" will be conducted, as
required.
3. Fixed Asset Accounting Requirements. Discussions will be held with Utility Staff
to reassess fixed asset tracking capabilities and methodologies pertaining to
recording and maintaining fixed asset investment data, the years of historical data
available, the level of detail available, the organization of recorded data, and the
categories of data captured and summarized in the current fixed asset system for
ratemaking. This reassessment will provide an indication of the utility's compliance
with GASB 34 reporting requirements.
4. Engineering Assumptions. The applicability and appropriateness of engineering
assumptions incorporated in the current wholesale ratemaking methodology will be
reviewed. Specifically, assumptions pertaining to the assignment of elements of
O&M, depreciation, and plant investment to functional cost components under the
WEF "design" and "proportionate use" bases of allocation will be reviewed, as will
assumptions pertaining to the assignment of customer class responsibility for
volume and strength related costs. Further, the assumptions pertaining to the
assignment of costs to be recovered from all customers and the costs to be recovered
from retail only customers will also be reviewed.
Task 5-Conduct Status Meetings and Presentations
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Black & Veatch is proposing seven (7) visits to the City's offices to conduct and
participate in a number of meetings. These visits and meetings are to include:
1. Detailed Study Plan Meeting. On May 3rd, Project Team personnel will visit the
Department's office to deliver a detailed study plan and collect necessary data and
information in order to conduct the rate study.
2. Project Overview Meeting. On May 201h, participate in a project overview meeting
with City Staff and the Wholesale Wastewater Advisory Subcommittee to discuss
the work plan, study methodology, and review key issues relating to the study.
3. Present O&M Interim Report. On June 10`h, meet with City Staff and the Wholesale
Wastewater Advisory Subconunittee to present an interim report regarding O&M
revenue requirements; and at the same time report on the overall progress of the
study.
4. Present Capital Cost Interim Report. On June 24'x', meet with City Staff and the
Wholesale Wastewater Advisory Subcommittee to present an interim report
regarding depreciation expense, rate of return, and the draft rate structure findings;
and at the same time report on the overall progress of the study.
5. Present Draft Wholesale Rates. On July 8t', present the draft study results including
the proposed wholesale rates (after final adjustments) to City Staff and the
Wholesale Wastewater Advisory Subcommittee.
6. Present Draft Wholesale Rates. On July 22`h, present the draft study results
including the proposed wholesale rates(after final adjustments) to City Staff and the
Wholesale Advisory Committee.
7. Present Final Wholesale Rates. On September 21th, meet with City Staff, if required,
for presentation of final wholesale rates to City Council for approval.
Task 6-Use and Update Existing Rate Model
The City's existing rate model will be utilized in performing Tasks 1 - 4 above for
the wholesale wastewater rate study, and further will be revised and updated as appropriate.
Specific activities to be accomplished in this task include:
1. Review Model Structure and Revise as Necessary. The City's rate model will be
reviewed, revised, and updated as necessary after considering such factors as:
a. Conformance with terms and conditions of the uniform wholesale contract.
b. Recognition of appropriate elements of cost(and revenue credits if applicable) in
determining revenue requirements to be shared by wholesale customers.
c. Identification and assignment of costs to cost functions in sufficient detail to
allow for appropriate allocation to functional cost components.
d. Appropriate and adequate recognition of plant investment, grants and
contributions including impact fees, accumulated depreciation on--plan
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investment, and other elements of rate base used in determining the return
element of cost of service.
e. The basis for apportionment of f inctionalized volume, strength, and customer
costs to customer classes.
f. Design of wholesale cost of service rates utilizing the results of previous model
calculations.
g. After the City has considered recommendations made as a result of efforts in
Task 4, the model will be edited/updated as directed by the City to reflect
selected additional cost considerations.
2. Update Data. The City's rate model will be updated for a new year of data.
3. Update Model User Instructions. Black & Veatch will update any on-line user
instructions in the model and/or for other existing instructional guides to recognize
all changes developed as a part of the study.
Task 7-Reports/Detiverables for Wholesale Wastewater Rates
The following reports and deliverables are included as a part of the proposed study:
1. Detailed Study Plan. On May 3rd prepare and deliver a detailed study plan
including a list of schedules to be prepared by the City and/or Consultant and a
timeline for project completion.
2. Overview Prosect Meeting Presentation. Prepare a project overview presentation
covering the project scope, schedule, and key issues for the May 20th Wholesale
Wastewater Advisory Subcommittee meeting.
3. O&M Interim Report. Prepare an interim report regarding O&M revenue
requirements for presentation to the Wholesale Wastewater Advisory Subcommittee
on June 10th.
4. Capital Cost Interim Report. Prepare an interim report regarding depreciation
expense, rate of return, and the draft rate structure for presentation to the Wholesale
Wastewater Advisory Subcommittee on June 24th.
5. Draft Wholesale Rates. Prepare summary of study results and the draft wholesale
rates for presentation to the Wholesale Wastewater Advisory Subcommittee on July
8th.
6. Draft Rate Report. Prepare and submit the draft final report to the Fort Worth Water
Department by July 21 th.
7. Presentation of Draft Wholesale Wastewater Rates. Prepare summary of study
results and the draft rate structure for presentation to the Wholesale Advisory
Committee on July 22`n
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8. Final Report. By August 31st deliver the final report and 50 signed copies to the
Fort Worth Water Department. The final updated computer rate model will be
delivered at the same time.
9. Approval of Wholesale Wastewater Rates. If required, provide support to the Fort
Worth Water Department when the Wholesale Wastewater Rates are presented to
City Council for approval on September 21th.
Task 8—Review of Miscellaneous Service Fees
The purpose of this task is to review and evaluate the appropriateness of the current
level of fees assessed by the City for such specific services as laboratory testing,
pretreatment monitoring, return check charges, reactivation fees, and a variety of other
miscellaneous service fees. Specific activities for this task include:
1. Review Basis of Development of Existing Fees. The initial analyses of the
miscellaneous service fees will be to meet with the appropriate City of Fort Worth
staff to discuss their knowledge of the bases for the exiting fees and to obtain any
information, calculations, or input that they may have related to the specific costs
and procedures for developing these fees. To the extent that such information is
readily available, we will review the information and make any adjustments required
to make the information more current (i.e. to recognize any cost increases in labor,
materials and supplies, ect. since the date of last development of the fees).
2. Benchmark Current Fees Against Similar Utilities. As another check as to the
reasonableness of the existing fees, particularly in the absence of specific historical
metrics or procedures used in the development of certain fees, we will review similar
fees and charges assessed by other comparable utilities, including, but not limited to,
the water/wastewater utilities in Dallas, San Antonio, Arlington, and Austin. For
certain of the miscellaneous fees, especially those associated with laboratory testing,
we may also contact various private laboratories in the Fort Worth area to see if they
have standard prices for these tests.
3. Summary Report of Findings. The results of the analyses of the actual cost
information in support of existing fees and the benchmarking of the existing fees
against other similar utilities will be summarized in a brief report, including
recommendations as to the suggested level of such charges. An initial draft report
will be provided to the City of Fort Worth staff for review and discussion. Upon the
completion of the review by City staff, 20 copies of a final report will be prepared
and submitted to the City. It is anticipated that the work on this task will parallel the
cost of service analyses for the wholesale wastewater customers and will be
completed by August 31St
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/8/2004
DATE: Tuesday, June 08, 2004
LOG NAME: 60RATE REFERENCE NO.: **C-20107
SUBJECT:
Authorize the Employment of Black & Veatch Corporation to Conduct a Wholesale Wastewater Rate
Study
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a contract with Black and
Veatch Corporation in the amount not to exceed $95,550 for the purpose of preparing a cost of service
study for wholesale wastewater rates.
DISCUSSION:
The uniform wholesale wastewater contracts between Fort Worth and existing 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 Black & Veatch Corporation be
retained to perform the cost of service study for the FY 2004-05 wholesale wastewater rates. The firm has
significant background in rate development and is capable of meeting time schedules established in the
wholesale contracts.
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Principal elements of the proposed study will include the following components:
• Review and analyze test year data
• Establish revenue requirement
• Allocate costs of service to customer classes
• Design wastewater rates
• Conduct periodic status meetings with Wholesale Wastewater Advisory
Committee and City of Fort Worth Staff:
Update rate model and user manual
In addition to the cost of service study, Black &Veatch Corporation will provide a comprehensive review of
other fees for service currently charged by the Water Department to ensure adequate cost recovery from
other revenue sources.
Black & Veatch Corporation is in compliance with the City's M/WBE Ordinance by committing to 21%
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M/WBE participation. The City's goal on this project is 15%.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated, of
the Water and Sewer Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE45 539120 0709010 $83,050.00
PE45 539120 0601000 $6,250.00
PE45 539120 0701000 $6,250.00
Submitted for City Manager's Office by: Marc Ott (8476)
Originating Department Head: Dale Fisseler (8207)
Additional Information Contact: Dale Fisseler (8207)
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