R-2020-0354 - 12/3/2020RESOLUTION NO. R-2020-0354
WHEREAS, the City of Round Rock ("City") desires to retain professional consulting services
related to the Fiscal Year 2021 rate study update; and
WHEREAS, Raftelis Financial Consultants, Inc. has submitted an Agreement for Professional
Consulting Services to provide said services; and
WHEREAS, the City Council desires to enter into said agreement with Raftelis Financial
Consultants, Inc., Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on behalf of the City an
Agreement for Professional Consulting Services Related to the FY 2021 Rate Study Update with
Raftelis Financial Consultants, Inc., a copy of same being attached hereto as Exhibit "A" and
incorporated herein for all purposes.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject matter
hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 3rd day of December, 2020.
CRAB O N. Mayor
City of Roun ock, Texas
ATTEST:
r
SARA L. WHITE, City Clerk
0112.20202, 00460454
EXHIBIT
„A»
CITY OF ROUND ROCK AGREEMENT FOR
PROFESSIONAL CONSULTING SERVICES RELATED TO
THE FY 2021 RATE STUDY UPDATE
WITH
RAFTELIS FINANCIAL CONSULTANTS, INC.
THE STATE OF TEXAS §
THE CITY OF ROUND ROCK §
COUNTY OF WILLIAMSON §
COUNTY OF TRAVIS §
KNOW ALL BY THESE PRESENTS
THIS AGREEMENT for professional consulting services related to the Fiscal Year 2021
rate study update (the "Agreement") i*s made and entered into on this day of the month of
2020, by and between the CITY OF ROUND ROCK, a Texas home -rule
municipal corporation with offices located at 221 East Main Street, Round Rock, Texas 78664m
5299, (the "City") and RAFTELIS FINANCIAL CONSULTANTS, INC., located at 3775 Capital
of Texas Highway, Suite 155 Austin, Texas 78704 (the "Consultant').
RECITALS0
:
WHEREAS, City has determined that there i*s a need for professional services related to
the Fiscal year 2021 rate study uPdate; and
WHEREAS, City desires to contract with Consultant for such services; and
WHERFAS, the parties desire to enter into ths Agreement to set forth in writing their
respective rights, duties and obligations hereunder;
NOW, THEREFORE, WITNESSETH:
That for and in consideration of the mutual promises contained herein and other good and
valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is
mutually agreed between the parties as follows:
1.01 EFFECTIVE DATE, DURATION, AND TERM
This Agreement shall be effective on the date this Agreement has been signed by each party
hereto and shall remain in full force and effect unless and until it expires by operation of the term
iherein or indicateds terminated or extended as provided herein.
The term of this Agreement shall be until full and satisfactory completion of the work
specified herein is achieved, with an estimated completion date of May 31, 2021.
00459843/ss2
City reserves the right to review the Agreement at any time and may elect to terminate the
Agreement with or without cause or may elect to continue.
2.01 PROPOSAL FOR SERVICES
For purposes of this Agreement, Consultant hasi*ssuedi'ots proposal for services for the tasks
delineated therein, such proposal for services being attached to this Agreement as Exhl'*bit "A"
ttledi"Scope of Work," which document is incorporated herein for all purposes.
3.01 SCOPE OF SERVICES
Consultant shall satisfactorily provide all services described herein and as set forth in
Exhibit "A" according to the schedule set forth agreed upon by the parties,, Consultant's
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undertaking shall be limited to performing services for City and/or advising City concerning those
matters on which Consultant has been specifically engaged. Consultant shall perform services in
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accordance with this Agreement i*n a professional and workmanlike manner pursuant to the Work
Schedule attached as Exhibit "B," and incorporated herein by reference for all purposes.
4.01 LIMITATION TO SCOPE OF SERVICES
Consultant and City agree that the scope of services to be performed is enumerated in
Exhibit "A" and herein, and Consultant shall not undertake work that I*s beyond the Scope of Work
set forth I*n Exhibit "A," however, either parry may make written requests for changes to the Scope
of Work. To be effective, a change to the Scope of Work must be negotiated and agreed to and
must be embodied in a valid Supplemental Agreement as described in 10.01.
5.01 CONTRACT AMOUNT
In consideration for the consulting services Consultant shall be paid on the basis of actual
hours worked by employees performing work associated with this Agreement, i*n accordance with
the Fee Schedule attached hereto as Exhibit "C."
Not -to -Exceed Total Payment for Services: Consultant's total compensation for
consulting services hereunder shall not exceed One Hundred Twenty -Four Thousand Four
Hundred Seventy -Six and 25/100 Dollars ($124 476.25). This amount represents the absolute
limit of Ci*ty's liability to Consultant hereunder unless same shall be changed by Supplemental
Agreement, and Ci*ty shall pay, strictly within the not -to -exceed sum recited herein, Consultant's
fees for work done on behalf of City.
Payment for Reimbursable Expenses: There shall be no payments for reimbursable
expenses included I*n this Agreement.
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6.01 INVOICE REQUIREMENTS; TERMS OF PAYMENT
Invoices: To receive payment, Consultant shall prepare and submit detailed invoices to
the City, in accordance with the delineation contained herein, for services rendered. Such invoices
for services shall track the referenced Scope of Work, and shall detail the services performed,
along with documentation for each service performed. Payment to Consultant shall be made on
the basis of the invoices submitted by Consultant and approved by the City. Such invoices shall
conform to the schedule of services and costs i*n connection therewith.
Should additional backup material be requested by the City relative to service deliverables,
Consultant shall comply promptly. In this regard, should the City determine it necessary,
Consultant shall make all records and books relating to this Agreement available to the City for
inspection and auditing purposes.
Payment of Invoices: The City reserves the right to correct any error that may be
discovered in any invoice that may have been paid to Consultant and to adjust same to meet the
requirements of this Agreement. Following approval of an invoice, the City shall endeavor to pay
Consultant promptly, but no later than the time period required under the Texas Prompt Payment
Act described I*n Section 8.01 herein. Under no circumstances shall Consultant be entitled to
receive interest on payments which are late because of a good faith dispute between Consultant
and the City or because of amounts which the City has a right to withhold under this Agreement
or state law. The City shall be responsible for any sales, gross receipts or siilar taxes applicable
to the services, but not for taxes based upon Consultant's net income.
7.01 INSURANCE
Consultant shall meet all City of Round Rock Insurance Requirements set forth at:
httv://www.roundrocktexas, ov/wv=vcontent/u ads/2014/12/corr insurance 07.2011"ic)'o-ond-fo
Consultant's Certificate of Insurance is attached as Exhibit "D."
8.01 PROMPT PAYMENT POLICY
In accordance with Chapter 225 1, V.T.C.A., Texas Government Code, any payment to be
made by the City to Consultant will be made within thirty (30) ays o
df the date the City receives
goods under this Agreement, the date the performance of the services under this Agreement are
completed, or the date the City receives a correct invoice for the goods or services, whichever i*s
later., Consultant may charge interest on an overdue payment at the "rate i*n effect" on September
1 of the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas
Government Code, Section 2251.025 b . This Prompt Payment Ploicy does not apply to payments
made by the City in the event:
(a) There i*s a bona fide dispute between the City and Consultant, a contractor,
subcontractor, or supplier about the goods delivered or the service performed
that cause the payment to be late; or
(b) There i*s a bona fide dispute between Consultant and a subcontractor or between
a subcontractor and its supplier about the goods delivered or the service
performed that causes the payment to be late; or
(c) The terms of a federal contract, grant, regulation, or statute prevent the City
from making a timely payment with federal funds; or
(d) The invoice is not mailed to the City i*n strict accordance with any instruction
on the purchase order relating to the payment.
9.01 NON -APPROPRIATION AND FISCAL FUNDING
This Agreement is a commitment of the Ci*ty's current revenues only. It i*s understood and
agreed that the City shall have the right to terminate this Agreement at the end of any City fiscal
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year if the governing body of the City does not appropriate funds sufficient to purchase the services
as determined by the City's budget for the fiscal year in question. The City may effect such
termination by giving Consultant a written notice of termination at the end of its then -current fiscal
year.
10.01 SUPPLEMENTAL AGREEMENT
The terms of this Agreement may be modified by written Supplemental Agreement hereto,
duly authorized by City Council or by the City Manager, I*f the City determines that there has been
a significant change in (1) the scope, complexity, or character of the services to be performed; or
(2) the duration of the work. Any such Supplemental Agreement must be executed by both parties
within the period specified as the term of this Agreement. Consultant shall not perform any work
or incur any additional costs prior to the execution, by both parties, of such Supplemental
Agreement. Consultant shall make no claim for extra work done or materials furnished unless and
until there I*s full execution of any Supplemental Agreement, and the City shall not be responsible
for actions by Consultant nor for any costs incurred by Consultant relating to additional work not
directly authorized by Supplemental Agreement.
11.01 TERMINATION; DEFAULT
Termination: It is agreed and understood by Consultant that the City may terminate this
�greement for the convenience of the City, upon thirty (30) days' written notice to Consultant,
with the understanding that immediately upon receipt of said notice all work being performed
under this Agreement shall cease. Consultant shall invoice the City for work satisfactorily
completed and shall be compensated inaccordance with the terms hereof for work accomplished
prior to the receipt of said notice of termination. Consultant shall not be entitled to any lost or
anticipated profits for work terminated under this Agreement. Unless otherwise specified in this
Agreement, all data, information, and work product related to this project shall become the
property of the City upon termination of this Agreement and shall be promptly delivered to the
City iiin a reasonably organzed form without restrction on future use,, Should the City
subsequently contract with a new consultant for continuation of service on the project, Consultant
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shall cooperate in providing information.
Termination of this Agreement shall extinguish all rights, duties, and obligations of the
City and the terminated party to fulfill contractual obligations. Termination under this section
shall not relieve the terminated party of any obligations or liabilities which occurred prior to
termination.
Nothing contained in this section shall require the City to pay for any work which it deems
unsatisfactory or which i*s not performed in compliance with the terms of this Agreement.
Default: Either party may terminate this Agreement, in whole or in part, for default I*f the
Party provides the other Party with written notice of such default and the other fails to satisfactorily
cure such defaultwithl*nten (10) business days of receipt of such notice (ora greaterti" e
upon between the Parties).
If default results in termination of this Agreement, then the City shall give consideration to
the actual costs incurred by Consultant i*n performing the work to the date of default. The cost of
the work that i*s useable to the City, the cost to the City of employing another firm to complete the
useable work, and other factors will affect the value to the City of the work performed at the time
of default. Neither party shall be entitled to any lost or anticipated profits for work terminated for
default hereunder.
The termination of this Agreement for default shall extinguish all rights, duties, and
obligations of the terminating Party and the terminated Party to fulfill contractual obligations.
Tenation under this section shall not relievemi
the ternated party of any obligati
rmions or liabilities
which occurred prior to termination.
Nothing contained in this section shall require the City to pay for any work which I*t deems
unsatisfactory, or which i*s not performed i*n compliance with the terms of this Agreement.
12.01 NON -SOLICITATION
All parties agree that they shall not directly or indirectly solicit for employment, employ,
or otherwise retain staff of the other during the term of this Agreement.
13.01 INDEPENDENT CONTRACTOR STATUS
Consultant is an independent contractor and is not the CI*ty's employee. Consultant's
employees or subcontractors are not the Ci*ty's employees. This Agreement does not create a
partnership, employer -employee, or joint venture relationship. No party has authority to enter into
contracts as agent for the other party. Consultant and the City agree to the following rights
consistent with an independent contractor relat"onship:
(1) Consultant has the right to perform services for others during the term hereof.
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(2) Consultant has the sole right to control and direct the means, manner and method
by which I*t performs its services required by this Agreement.
(3) Consultant has the right to hire assistants as subcontractors, or to use employees to
provide the services required by this Agreement.
(4) Consultant or its employees or subcontractors shall perform services required
hereunder, and the City shall not hire, supervise, or pay assistants to help
Consultant.
(5) Neither Consultant nor its employees or subcontractors shall receive training from
the City in skills necessary to perform services required by this Agreement.
(6) City shall not require Consultant or its employees or subcontractors to devote full
time to performing the services required by this Agreement.
(7) Neither Consultant nor its employees or subcontractors are eligible to participate in
any employee pension, health, vacation pay, sick pay, or other fringe benefit plan
of the City.
14.01 CONFIDENTIALITY; MATERIALS OWNERSHIP
Any and all programs, data, or other materials furnished by the City for use by Consultant
in connection with services to be performed under this Agreement, and any and all data and
information gathered by Consultant, shall be held i*n confidence by Consultant as set forth
hereunder. Each party agrees to take reasonable measures to preserve the confidentiality of any
proprietary or confidential information relative to this Agreement, and to not make any use thereof
other than for the performance of this Agreement, provided that no claim may be made for any
failure to protect information that occurs more than three (3) years after the end of this Agreement.
The parties recognize and understand that the City i*s subject to the Texas Public
Information Act and its duties run in accordance therewith.
All data relating specifically to the CI*ty's business and any other information which
reasonably should be understood to be confidential to City i*s confidential information of City.
Consultant's proprietary software, tools, methodologies, techniques, ideas, discoveries,
inventions, know-how, and any other information which reasonably should be understood to be
confidential to Consultant is confidential information of Consultant. The City9 s confidential
irmation and Consultant's confidential information infos collectively referred to as "Confidential
Information." Each party shall use Confidential Information of the other party only in furtherance
of the purposes of this Agreement and shall not disclose such Confidential Information to any third
party without the other parry's prior written consent, which consent shall not be unreasonably
withheld. Each part',y agrees to take reasonable measures to protect the confidentiality of the other
parry's Confidential Information and to advise their employees of the confidential nature of the
Confidential Information and of the prohibitions herein.
Any and all materials created and developed by Consultant i*n connection with services
performed under this Agreement, including all trademark and copyright rights, shall be the sole
property of City at the expiration of this Agreement.
15.01 WARRANTIES
Consultant represents that all sery ices performed hereunder shall be performed consistent
with generally prevailing professional or industry standards and shall be performed in a
professional and workmanlike manner. Consultant shall re -perform any work no in compliance
with this representation.
16.01 LIMITATION OF LIABILITY
Should any of Consultant's services not conform to the requirements of the City or of this
Agreement, then and in that event the City shall give written notification to Consultant; thereafter,
(a) Consultant shall either promptly re -perform such services to the CIt s satIsfaction at no
additional charge, or (b) I*f such deficient services cannot be cured within the cure period set forth
herein, then this Agreement may be terminated for default.
In no event will Consultant be liable for any loss, damage, cost or expense attributable to
negligence, willful misconduct or misrepresentations by the City, its directors, employees or
agents,,
In no event shall Consultant be liable to the City, by reason of any act or omission relating
to the services provided under this Agreement (including the negligence of Consultant), whether
a clai*be in tort, contract or otherwise, (a) for any consequentifit
al, indirect, lost pro, puni
m tiove,
special or similar damages relating to or arising from the services, or (b) in any event, in the
aggregate, for any amount i*n excess of the total fees paid by the City to Consultant under this
Agreement, except to the extent determined to have resulted from Consultant's gross negligence,
Willful misconduct or fraudulent acts relating totheservicepro vided hereunder.
17.01 INDEMNIFICATION
Consultant agrees to hold harmless, exempt, and indemnify City, its officers, agents,
directors, servants, representatives and employees, from and against any aasui*ts,acndll tions, legal
proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and claims of
any character, type, or description, including but not limited to any and all expenses of litigation,
court costs, attorneys' fees and all other costs and fees incident to any work done as a result hereof.
To the extent allowable by law, City agrees to hold harmless, exempt, and I*ndemnify
Consultant, its officers, agents, directors, servants, representatives and employees, from and
against any and all suits, actions, legal proceedings, demands, costs, expenses, losses, damages,
penalties, liabilities and claims of any character, type, or description, ifines,ncludi*ng but not
limited to any and all expenses of litigation, court costs, attorneys' fees and all other costs and fees
incident to any work done as a result hereof.
18.01 ASSIGNMENT AND DELEGATION
The parties each hereby bind themselves, their successors, assigns and legal representatives
to each other with respect to the terms of this Agreement. Neither party may assign any rights or
delegate any duties under this Agreement without the other party's prior written approval, which
approval shall not be unreasonably withheld.
19.01 LOCAL, STATE AND FEDERAL TAXES
Consultant shall pay all income takes, and FICA (Social Security and Medicare taxes)
incurred while performing services under this Agreement. The City will not do the following:
(1) Withhold FICA from Consultant's payments or make FICA payments on its
behalf'*
(2) Make state and/or federal unemployment compensation contributions on
Consultant's behalf; or
(3) Withhold state or federal income tax from any of Consultant's payments.
If requested, the City shall provide Consultant with a certificate from the Texas State
Comptroller indicating that the City i*s not subject to State of Texas Sales and Use Tax.
20.01 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES
A. Consultant, its consultants, agents, employees and subcontractors shall use best efforts to
comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round
Rock, as amended, and with all applicable rules and regulations promulgated by local, state and
national boards, bureaus and agencies. Consultant shall further obtain all permits, licenses,
trademarks, or copyrights, I*f required i'*n the performance of the services contracted for herein, and
same shall belong solely to the City at the expiration of the term of this Agreement.
Be In accordance with Chapter 2270, Texas Government Code, a governmental entity may not
enter into a contract with a company for goods and services unless the contract contains 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 signatory executing this Agreement on behalf of Consultant
verifies Consultant does not boycott Israel and will not boycott Israel during the term of this
Agreement.
21.01 FINANCIAL INTEREST PROHIBITED
Consultant covenants and represents that Consultant, its officers, employees, agents,
consultants and subcontractors willfi
have no inancali'*nterest, direct or indirect, i*n the purchase or
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sale of any product, materials or equipment that will be recommended or required hereunder.
22.01 DESIGNATION OF REPRESENTATIVES
The City hereby designates the following representative authorized to actl'on its behalf with
regard to this Agreement:
David Freireich, P.E., Utility Engineering Manager
Utilities and Environmental Services
3400 Sunrise Road
Round Rock, TX 78665
dfreireich('�q.),roundrockp-texas..ov
23.01 NOTICES
All notices and other communications in connection with this Agreement shall be i*n writing
and shall be considered given as follows:
(1) When delivered personally to recipient's address as stated herein; or
(2) Three (3) days after being deposited i*n the United States mail, with postage prepaid
to the recipient's address as stated 1*n this Agreement.
Notice to Consultant.,*
Raftelis Financial Consultants, Inc.
3775 Capital of Texas Highway
Suite 155
Austin, TX 78704
Notice to City:
City Manager, City of Round Rock
221 East Main Street
Round Rock, TX 78664
AND TO:
Stephan L. Sheets, City Attorney
309 East Main Street
Round Rock, TX 78664
Nothing contained in this section shall be construed to restrict the transmission of routine
communications between representatives of the City and Consultant.
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24.01 APPLICABLE LAW; ENFORCEMENT AND VENUE
This Agreement shall be enforceable in Round Rock, Texas, and"f legal action is necessary
by either party with respect to' the enforcement of any or all of the terms or conditions herein,
exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be
governed by and construed in accordance with the laws and court decisions of Texas.
25.01 EXCLUSIVE AGREEMENT
The terms and conditions of this Agreement, including exhibits, constitute the entire
agreement between the parties and supersede all previous communications, representations, and
agreements, either written or oral, with respect to the subject matter hereof. The parties expressly
agree that, in the event of any conflict between the terms of this Agreement and any other writing,
this Agreement shall prevail. No modifications of this Agreement will be binding on any of the
parties unless acknowledged i*n writing by the duly authorized governing body or representative
for each party.
26.01 DISPUTE RESOLUTION
The City and Consultant hereby expressly agree that no claims or disputes between the
parties arising out of or relating to this Agreement or a breach thereof shall be decided by any
arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration
Act (9 USC Section I m 14) or any applicable state arbitration statute.
27.01 SEVERABILITY
The invalidity, illegality, or unenforceabl*11*ty of any provision of this Agreement or the
occurrence of any event rendering any portion of provision of this Agreement void shaiiion no way
affect the validity or enforceability of any other portion or provision of this Agreement. Any void
provision shall be deemed severed from this Agreement, and the balance of this Agreement shall
be construed and enforced as I*f this Agreement did not contain the particular portion of provision
held to be void. The parties further agree to amend this Agreement to replace any stricken provision
with a valid provision that comes as close as possible to the intent of the stricken provision. The
provisions of this Article shall not prevent this entire Agreement from being void should a
provision which i*s of the essence of this Agreement be determined void.
28.01 STANDARD OF CARE
Consultant represents that it is specially trained, experienced and competent to perform all
of the services, responsibilities and duties specified herein and that such services, responsibilities
and duties shall be performed, whether by Consultant or designated subconsultants, in a manner
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acceptable to the City and according to generally accepted business practices.
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29.01 GRATUITIES AND BRIBES
City, may by written notice to Consultant, cancel this Agreement without incurring any
liability to Consultant I*f I*t I*s determined by City that gratuities or bribes i*n the form of
entertainment, gifts, or otherwise were offered or given by Consultant or its agents or
representatives to. any City Officer, employee or elected representative with respect to the
performance of this Agreement. In addition, Consultant may be subject to penalties stated I*n Title
8 of the Texas Penal Code.
30*01 RIGHT TO ASSURANCE
Whenever either party to this Agreement, in good faith, has reason to question the other
parry's intent to perform hereunder, then demand may be made to the other party for written
assurance of the intent to perform. In the event that no written assurance is given within the
reasonable time specified when demand i*s made, then and I*n that event the demanding party may
treat such failure as an anticipatory repudiation of this Agreement.
31.01 MISCELLANEOUS PROVISIONS
Time is of the Essence. Consultant agrees that time is of the essence and that any failure
of Consultant to complete the services for each phase of this Agreement within the agreed project
schedule may constitute a material breach of this Agreement. Consultant shall be fully responsible
for its delays or for failures to use reasonable efforts i*n accordance with the terms of this
Agreement. Where damage i*s caused to City due to Consultant's failure to perform i*n these
circumstances, City may withhold, to the extent of such damage, Consultant's payments hereunder
without a waiver of any of CI*ty's additional legal rights or remedies. City shall render decisions
pertaining to Consultant's work promptly to avoid unreasonable delays in the orderly progress of
Consultant's work.
Force Majeure, Notwithstanding any other provisions herein to the contrary, no failure,
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delay or default in performance of any obligation hereunder shall constitute an event of default or
breach of this Agreement, only to the extent that such failure to perform, delay or default arises
out of causes beyond control and without the fault or neg,igence of the party otherwise chargeable
with failure, delay or default; including but not limited to acts of God, acts of public enemy, civil
war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters or other
casualties, strikes or other labor troubles, which i*n any way restrict the performance under this
Agreement by the parties.
Section Numbers. The section numbers and headings contained herein are provided for
convenience only and shall have no substantive effect on construction of this Agreement.
Waiver. No delay or omission by either party in exercising any right or power shall impair
such right or power or be construed to be a waiver. A waiver by either party of any of the covenants
to be performed by the other or any breach thereof shall not be construed to be a waiver of any
succeeding breach or of any other covenant. No waiver or discharge shall be valid unless in writing
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and signed by an authorized representative of the party against who such waiver or discharge i*s
sought to be enforced.
Multiple Counterparts. This Agreement may be executed i*n multiple counterparts, which
taken together shall be considered one original. The City agrees to provide Consultant with one
fully executed original.
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates hereafter
indicated.
City of Round Rock, Texas
00
Printed Name:
Title:
Date Signed:
For City, Attest:
Sara L. White, City Clerk
For City, Approved as to Form:
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Stephan L. Sheets, City Attorney
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Raftelis F' anci onsultants, Inc.
By:
Printed Name: Harold J Smith
TiTitle:Vice President
Date Signed: 11/17/20
EXHIBIT A — SCOPE OF SERVICES
Project Work Plan
The tasks of our proposed project scope are summarized below and based on our understanding of the
project expectations for the Utility Cost of Service Rate Study. Although we have listed these tasks
consecutively, many tasks will overlap and be conducted concurrently.
Task 1: Project Development and Management
This task provides a solid foundation for the project. During the kick-off meeting, all aspects of the project
will be discussed, including the primary objectives of the City, final deliverables, and ongoing project
management. In addition, Raftelis will discuss the pricing objectives and rate setting objectives in order to
gain a clearer understanding of what the City would like to achieve through its rate structure.
As part of this task, the Project Team will have discussions with City management and stafft0 obtain a
thorough understanding of the financial, operational, regulatory and political environment. Key issues and
areas of concern, such as operating procedures, rate and financial philosophies, the current financial vision,
and the pricing objectives used to develop the current rate structures will be reviewed and discussed.
Historical information will be reviewed related to costs, customers, usage, demand patterns, capital
spending, and revenues generated in order to gain a better understanding of recent changes in operating
characteristics and to develop information and materials required to facilitate the completion of later tasks.
The proposed project approach entails several different, yet interrelated, work efforts that will require
effective coordination between the Project Team and the utility staff: Our project management approach
stresses communication, teamwork, objectivity, and accountability for meeting project objectives. This
includes general administrative duties, including client correspondence, billing, project documentation,
and administration of the study control plan. This provides for consistent and competent project
management to ensure that all deadlines and objectives are met in a timely and efficient manner. We believe
in a no -surprises approach so that the client is always aware of the status of the project.
Task 210s Financial Planning and Rate Model Development
This task includes the creation of a water and wastewater cost of service and rate design model (Rate
Model) tailored to the City's current situation and needs. The Rate Model will be constructed in Microsoft
Excel, will incorporate the comprehensive 10-year financial plan, and will be user-friendly to run van* ous
financial scenarios based on key inputs. The Rate Model will be used as the primary vehicle in the next five
tasks. Upon completion of the Study, the Rate Model will be a formal deliverable, and Raftelis will train
City staff' on the functionality and use of the model.
Task 3: Comprehensive Financial Pl.nning and Revenue Requirement Determination
Raftelis will collect, analyze, and forecast all of the operating expenditures, capital expenditures, debt
service, and miscellaneous items to be included in comprehensive ten -,year water and wastewater financial
plans for the ten-year study period 2021 — 2030. The projections contained in each financial plan will be
developed in consultation with the utility and will focus on determining the level of rate revenue required
to fund utility operations, meet target reserve balances, comply with debt service coverage rates and ensure
long-term financial viability. The financial plan will be incorporated as a module in the Rate Model,
discussed in Task 2,
Task 44.1 Water Cost Allocation and Rate Development
During this task, Raftelis will review existing methodologies for compliance with industry accepted
approaches. In our own analysis, Raftelis will use a ulti-step cost allocation methodology based on
AWWA standard processes to allocate FY 2021 water utility revenue requirements to each water customer
class based on the proportionate demands they impose on the water utility system and to determine the
specific revenue requirement for each water service customer class.
Revision 6/17/2019
Additionally, the existing demand and financial relationships, such as subsidies, between classes will be
reviewed and will be determined if existing practice should continue or be revised to reflect new objectives
or datadriven changes.
Raftelis, will discuss the advantages and disadvantages of the existing water rate structure with City staff
and recommend alternatives based on pricing objectives, cost of service, and City staff input. Coupled with
the results of cost allocation analysis, the existing and alternative rate structures will be examined and
evaluated using the Rate Model (Task 2). Customer impact analyses will be performed for comparison,
and a proposed water rate structure and schedule of water rates will be recommended.
Task 5*0 Wastewater Cost Allocation and Rate Development
Similarly, Raftelis will review the existing methodology for wastewater allocation and rates for
appropriateness according to industry accepted methods. For an updated calculation of wastewater cost of
service, Raftelis will conduct a ulti-step cost allocation methodology based on WEF standard processes
to allocate FY 2021 wastewater utility revenue requirements to each customer class based on the
proportionate demands they impose on the wastewater utility system and determine the specific revenue
requirement for each wastewater service customer class. Similar to the water cost allocation, Raftelis will
examine existing customer classes and review the existing relationships between customer classes.
Raftelis will discuss the advantages and disadvantages of the existing wastewater rate structure with City
staff and recommend alternatives based on pricing objectives, cost of service, and City staff input. Coupled
with the results of the cost allocation analysis, the existing and alternative rate structures will be examined
and evaluated using the Rate Model (Task 2). Customer impact analyses will be performed for comparison,
and a proposed wastewater rate structure and schedule of wastewater rates will be recommended.
Task 6.0 Wholesale Cost Allocation and Rate Determination
The objective of this Task is to perform a detailed wholesale rate study and to evaluate the rate calculation
for each of the City's wholesale customers. Raftelis will conduct a cost of service study for the wholesale
customers using industry -accepted methods. Based on the City's input during the kick-off meeting, Raftelis
will work with the City to make any necessary modifications or changes to the selected rate calculation
approach. The approach for the wholesale cost of service will consider the outcome of the City's Wholesale
Rate Case. The detail of the rate calculation will be documented in a simple, straightforward manner for
ease of understanding. This Task will also involve a meeting with the Project Team as well as individual
meetings with each of the City's wholesale customers to brief the customers on any changes to the
approach, future rates, and to address any questions.
Task 7: B.Cnchmarking Study
The Study will include a bench arking analysis to compare and benchmark the proposed rate structure
and rates developed for the City with relevant neighboring communities and utilities of comparable size
and service characteristics. Raftelis will work with City staff to develop an appropriate group of survey
communities, and we anticipate that the final comparison group will be six to ten peer communities.
Task 8,e Study Deliverables, Presentation of Results, and Support
Raftelis will docu,ment the Study 's methodology and results in formal report. Raftelis will assist the City in
drafting relevant policy and procedural language should any changes be necessary. As previously stated,
the Rate Model will be a formal deliverable and will accompany the final report. Raftelis will be create a
PowerPo t presentation summarizing Study results and will present to City senior staff and City Council.
As additional optional tasks not included in this scope, Raftelis can provide assistance as needed when
conveying the new rate structure to the public, and Raftelis can serve as expert support in any related rate
case should one arise.
Task 9: Con-finigency
This task has been included for contingency purposes only. If any additional items not covered above are
needed, they will be completed under this task.
Revision 6/17/2019
EXHIBIT B — WORK SCHEDULE
It is anticipated that the study will be substantially complete by May 2021. Raftelis understands
that City staff will begin discussions with City Management and City Council in June which might
result in changes. Reports and presentations will be finalized once those discussions are completed.
DEC JAN FEB NIA R A PR MA Y
1, Project Development and
--------------- - — ------ - --------------------- - ---
Management
2, Financial Planning and Rate
Modei Development
3. Comprehensive Financial
Planning and Revenue
Reauirement Determination
---------------
4. Water Cost Allocation and Rate f.
Development
5,Wastewater Cost Allocation and
Rate Development
6, Wholesale Cost Allocation and
Rate Development
7, Bench -narking Study
Vng V trks need
4 .-person.- s.,,'' V �-Ops (or 4tual, as ree ed
270919TWORMW
EXHIBIT C — FEE SCHEDULE
.......... ................... ... .... ....... .. . ... ...... ......
Project Name:
... ............ -- ......... .... .......... . I .......... I ...... 11 ....... 11.1 .. .... ....... I.— .........
FY 2021 Rate Study Update
F�
Task
I Total
Labor Hours
I Total
Loaded Labor Cost
Other
Direct Costs
Subconsultants
TOTALS
Task 1: Project Development and Management
56
$151040900...
$11104905
$0. 00
$161144.05......
Task 2: Financial P. ...lanning & Rate Mod.... I ..el Dev.1 .........elopmen.... ....t I.I.I.....- ... ....
............ .......56 ...........
$11,560000..
— ........... I ..........
$11649900..... . — ....................
— ..............
so-00.
.................. .. -- ....... ........ -..- .
.......$131209000
— . .............. — ........
Comprehensive Financial Planning & Revenue
Task3: Requirement Determination ...... ........... ................................ .. ..... .
.. � I ....................
.. I .... ... 40 ... ...
$8,600800..........
.............................
$11489200......................
$0800.......
L
Task 4: Water Cost Allocation & Rate Development
.. I ......... .. .
44
......
$91820000
. ...... -.1 ......... ...... ....
$984950
... ......................... ... .. ................
$0600
. .......... ...$10,089600
...... .. . . .....
r $10,804250
Task 5: Wastewater Cost Allocation 8 Rate Development
.......... ............................................... ............... ........
44
$9,820000
........................
$984950
$0900
$10,804150
............................... ............................................... ...................... I
Task 6: Wholesale Cost Allocation & Rate D.......
....................................... ......
50
............................................
$111470000
...................................................
$1,044855
...................................................... .
$0100
.................. I ...............................
$121514055
......... -- ..... .. I ..... .............evelopment
Task 7: Benchmarking Study ...... ...
... 30 .
I.—
$61330900
........................................
$844650
$71 1 74,50
Task 8: Study Deliverables, Presentation of Results & Suppo
.......... ...... .............
72
I ........ ......... ...
$18,120800
......................................................
$720000
........ .........$0.00
....... ...... ........
............ I...... .............
$18,840600
Task 9: Contingency
99
$24,896915
MW
$24,896015
GRAND TOTAL:
491
$1151656015
$8,820610
$0200
$124,476o25
=Omni
Revision 6/17/2019
EXHIBIT D - CERTIFICATE OF INSURANCE
Revision 6/17/2019
Cliant*w- 1722AR3
RAFTEFIN
ACORDTM CERTIFICATE OF LIABILITY INSURANCE
DATE (MMIDDNYYY)
10/28/2020
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy., certain policies may require an endorsement. A statement on
this certificate does not confer any rights to the. certificate holder in lieu of such endorsement(s).
PRODUCER
Cameron M Harris & Co, LLC
Div USI Ins
CONTACT NAME: Linda Rolfe
_(A/C, No, o eM : 980=265=5804 FAX
(A/C.No
nooR�Ess: linda.rolfeD-usl*.com
6100 Fairview Road Ste 1400
Charlotte, NC 28210
INSURER(S) AFFORDING COVERAGE
N/UC N
INSURER A: National Fire Insurance Co. of Hartford
20478
INSURED
INSURER B : Continental Insurance Company
35289
Raftelis Financial Consultants, Inc.
227 West Trade Street, Ste. 1400
iNsurtert C : American Casualty Company of Reading PA
20427
INSURER D : Continental Casualty Company
20443
Charlotte, NC 28202
INSURER E
J
INSURER F :
I
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LTRR
TYPE OF INSURANCE
�NDRL
SyyUyp
POLICY NUMBER
MMILDDY�
MM/DDY�
LIMITS
A
X
COMMERCIAL GENERAL LIABILITY
CLAIMS -MADE OCCUR
6076000011
01/21/2020
01/21/2021
EACH OCCURRENCE
$1000,000
PREMISES?ERN TErD
nce
$500000
MED EXP (Any one person)
s15,000
PERSONAL 8 ADV INJURY
$190009000
GEN'L
AGGREGATE LIMIT APPLIES PER:
PRO-
POLICY I JECT ILOC
OTHER
GENERAL AGGREGATE
s2,000,000
PRODUCTS - COMP/OP AGG
s2,000,000
$
D
AUTOMOBILE LIABILITY
ANY AUTO
OWNED SCHEDULED
AUTOS ONLY AUTOS
HIRED NON -OWNED
xAUTOS ONLY xAUTOS ONLY
607600002501/21/2020
01/21/2021
Ea aocideD SINGLE LIMIT nt)
$190009000
BODILY INJURY (Per person)
$
BODILY INJURY (Per accident)
$
PROPERTY DAMAGE
Per accident
$
B
X
UMBRELLA LIAB
EXCESS LIAB
X
OCCUR
I CLAIMS -MADE
6076000039
01/21/2020
01/21/2021
EACH OCCURRENCE
s5,000,000
AGGREGATE
$590009000
DED X I RETENTION $10000
$
C
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY Y/N012
PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED? NJ
(Mandatory In NH)
If yes, describe under
DESCRIPTION OF OPERATIONS below
N I A
6076305637
sO/12021
GO4
01/21/2020
1ANY
01/21/2021
x PER OTH-
T E ER
E.L. EACH ACCIDENT
$120002000
E.L. DISEASE - EA EMPLOYEE
$1,000,000
E.L. DISEASE -POLICY LIMIT
1$1,000,000
D
Prof. Liability
652071235
01/21/2020
01/21/2021
$5,000,000 Occurrence
$5,000,000 Aggregate
DESCRIPTION OF OPERATIONS /LOCATIONS /VEHICLES (ACORD 707, Additional Remarks Schedule, may be attached If more space Is required)
City of Round Rock is included as additional insured with respect to General Liability, Automobile
Liability and umbrella will follow form. 30 day notice of cancellation will ge given except for non-payment
of premium will be 70 days if required by written contract.
CERTIFICATE HOLDER CANCELLATION
City Manager
City of Round Rock
221 E. Main Street
Round Rock, TX 78664
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
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