Loading...
CM-07-04-070PATHWAYS TO LASTING SOLUTIONS RED )A1,„ CONSULTING A DIVISION OF MALCOLM PINNIC April 11, 2007 CONFIDENTIAL Mr. David Kautz CFO/Assistant City Manager City of Round Rock 221 E. Main Street Round Rock, Texas 78664 Re: Regional Wastewater System Costs Study Proposed Agreement and Scope of Services Dear Mr. Kautz: As we discussed with you last Thursday during our telephone conference involving yourself, Mr. Nuse, and Ms. Demers for the City of Round Rock, and Andy McCartney, Charles Schoening, and myself for Red Oak, we are happy to submit this letter proposal to the City of Round Rock. Red Oak Consulting, a division of Malcolm Pirnie, Inc., (Red Oak), has prepared the attached Professional Services Agreement for your execution. This document describes the Basic Services to be provided by Red Oak in Sections 1 and 2. Section 1 refers to Attachment A, where our services are listed. Attachment A, in turn, refers to this letter as the Scope of Services. BACKGROUND The City of Round Rock and a few other cities (referred to as The Cities herein) along with the LCRA and the Brazos River Authority (BRA) formed a regional wastewater utility system some 14 years ago. At that time, a significant amount of assets were contributed by The Cities into this regional system. Major assets include the wastewater collection system and a wastewater treatment plant. The regional system has grown significantly during the intervening time. Total investment in the regional facilities now exceeds $109 million. Another $39 million is expected to be added to that by 2011. Per existing agreements, LCRA and BRA provide The Cities with wastewater collection, treatment and disposal services. The Cities expressed concern to us about significant escalations in LCRA's charges for these services. The objective of this study is to collect rate data to assist The Cities in determining if their initial misgivings are based on relevant industry comparative rate emt-o17-61-000 • 100 Fillmore Street - Suite 200 - Denver, CO 80206 - T 303-316-6500 F 303-316-6599 - www.redoakconsulting.com Mr. David Kautz City of Round Rock April 11, 2007 Page 2 information and LCRA cost data. Our discussions confirmed that the City of Round Rock desires Red Oak to initiate a limited scope study consisting of two specific tasks. We propose to complete these two tasks on an fixed fee basis. If additional tasks are subsequently identified and requested by the City of Round Rock, Red Oak will discuss these requests with you at that time to conduct such additional tasks. SCOPE OF SERVICES For this limited study, we propose to conduct the following tasks in accordance with our previous discussions. Task 1 - Rate Survey In this task we will conduct a wholesale wastewater rate survey of the following Texas wastewater utilities: 1. Fort Worth Water Department 2. Dallas Water Utilities 3. Trinity River Authority 4. Austin Water Utility, and 5. San Antonio Water System This information will serve to establish wholesale service rates per 1,000 gallons for wastewater service. This information will likely not allow us to conduct a more rigorous analysis of specific line item costs such as administrative overhead costs. However, it will demonstrate if the LCRA wholesale rates are similar to the rates charged by these other wholesale wastewater utilities. Task 2 - Round Rock Cost Data Review We propose that our senior analyst for this study will meet with your Finance Director, Ms. Cindy Demers, in Round Rock within the first few weeks of this study. This will be a one day session to review and discuss the LCRA cost data gathered by The Cities and submitted to us, and to discuss other observations and questions regarding this data. The data we have received from you to date includes: • March 9 • March 19 Batch 1. • March 19 Batch 2. • March 19 Batch 3. LCRA Brushy Creek Wastewater System 2007 Budget BCWWTP System Data Proforma BCWWT data Brushy Creek Capital expenditures PATHWAYS TO LASTING SOLUTIONS Mr. David Kautz City of Round Rock April 11, 2007 Page 3 STAFFING We propose to designate Mr. Andy McCartney, senior financial consultant as the manager for Tasks 1 and 2, as discussed above. Dr. Kees Corssmit will act as our senior reviewer for these two tasks. As previously discussed, if other tasks are requested, Red Oak can make available experienced engineers or other Red Oak consultants, such as Gary Rabalais and David Sklar, whose names and resumes were previously made available to you, to address future potential needs. Their resumes are attached for your convenience. All of our senior consultants may be assisted by other consultants, as needed. TIMELINE We are prepared to meet your timeline for this study targeting a mid June 2007 date to complete Tasks 1 and 2. WORK EFFORT AND FEE We propose to conduct Tasks 1 and 2 of this study for a fixed fee of $16,500. If you have any questions or concerns, or require additional information, please contact me. Very truly yours, RED OAK CONSULTING a division of Malcolm Pirnie, Inc. C. ( ies) W. Corssmit, PhD Vice President CWC Enclosures M052103 cc: Andy McCartney, RO Charles Schoening, RO PATHWAYS TO LASTING SOLUTIONS STANDARD TERMS AND CONDITIONS FOR PROFESSIONAL SERVICES Page 6 of 27 Between City of Round Rock, Texas and Red Oak Consulting In consideration of the mutual promises herein, City of Round Rock, Texas [Client] and Red Oak Consulting, a division of Malcolm Pirnie, Inc. [Red Oak], agree that the terms and conditions of this Agreement [Agreement] are the following: SECTION 1-- BASIC SERVICES 1.1 Scope. Red Oak shall provide Professional Financial Consulting Services [Services] described in Attachment A, Scope of Services. Attachment A shall also contain payment and pricing provisions. 1.2 Standard of Care. Red Oak shall perform the Services under this Agreement at the level custom- ary for competent and prudent professionals performing such Services at the time and place where the Services are provided. These Services will be provided by professionals and individuals skilled in financial consulting services. 1.3 Instruments of Service. Red Oak is responsible for the professional quality, technical accuracy, timely completion, and the coordination of all instruments of its Services [Service Instruments] provided under this Agreement. SECTION 2 -- ADDITIONAL SERVICES 2.1 Scope. Red Oak will provide Additional Services when authorized in writing by the Client. SECTION 3 -- CLIENT'S RESPONSIBILITIES Unless stated otherwise in Section 8, the Client shall do the following in a timely manner. 3.1 Client's Representative. Designate a representative having authority to give instructions, receive information, define Client's policies, and make decisions with respect to the Services. 3.2 Assignment Criteria. Provide all criteria and information as to Client's requirements for the Services, including any budgetary limitations. 3.3 Data. Provide all available information, including previous reports and any other data in the possession of the Client relevant to the Services per the request submitted by Red Oak. 3.4 Access. If necessary, arrange for Red Oak to enter upon public and private property as necessary 3.5 Review. Examine the Service Instruments and obtain the advice of attorneys, insurance counselors or other consultants as Client thinks appropriate. Render written decisions concerning the Service Instruments within a reasonable time. 3.6 Assignment Developments. Give prompt written notice to Red Oak whenever Client observes or otherwise becomes aware of any development that affects the scope or timing of Red Oak's Services. SECTION 4 -- PERIODS OF SERVICE 4.1 Time of Performance. Sections 4 and 5 anticipate the orderly and continuous progress of the Services. The time of performance is the period which should reasonably be expected to be required for the completion of the Services. 4.2 Delays. If Attachment A specifies specific dates by which Services are to be completed and if such dates are exceeded through no fault of Malcolm Pirnie, the compensation specified under Section 5 shall be subject to equitable adjustment. 4.3 Start of Performance. Red Oak will start the Services upon authorization by the Client. If Client gives authorization before signing the agreement, Red Oak shall be paid as if the Services had been performed after both parties signed the Agreement. 4.4 Completion of Performance. For the purposes of final payment under Section 5, completion of Red Oak's services will occur upon completion of the Services. 4.5 Force Majeure. If a force, event, or circumstance beyond Red Oak's control interrupts or delays Red Oak's performance, the time of Version: Dec 2005 Master STANDARD TERMS AND CONDITIONS FOR PROFESSIONAL SERVICES Between City of Round Rock, Texas and Red Oak Consulting performance of the Services shall be equitably adjusted. SECTION 5 -- COMPENSATION 5.1 Basic Services. Client shall pay Red Oak the amount stated in invoices issued in accordance with the pricing schedule for work performed and reimbursable expenses incurred during the period covered by the invoice as outlined in Attachment A. Invoices are due and payable within 30 days after receipt by the Client. 5.2 Additional Services. Client shall pay Red Oak for Additional Services performed pursuant to Client's Authorization and invoiced in accordance with the pricing schedule. 5.3 Delay or Termination. 5.3.1 If Client delays the performance of, or payment for, Services under this Agreement for more than 3 months for a reason(s) other than Red Oak's fault, Red Oak may suspend performance until it receives payment in full for Services rendered and expenses incurred to the date of suspension. 5.3.2 If Client terminates this Agreement prior to completion of the Services, Red Oak shall be paid in full for Services satisfactorily rendered and expenses incurred to the date of termination, including reasonable demobilization and termination expenses. 5.4 Disputed Amounts. If Client disputes an item(s) or amount(s) contained in an invoice, Client agrees to pay the balance of the undisputed invoiced amounts to Red Oak. 5.5 Collection. Any reasonable attorney's fees or other reasonable costs incurred by Red Oak in collection of delinquent amounts shall be paid by the Client. SECTION 6 -- GENERAL CONSIDERATIONS 6.1 Changes. By written notice at any time, the Client may change the Services, provided such Page 7 of 27 changes are within the general scope of the Services contemplated by this Agreement. In such event, an equitable adjustment both in the compensation for and time of performance of the Agreement shall be made in writing prior to Red Oak's performing the changed Services. 6.2 Confidentiality. Red Oak will hold secret and confidential all information designated by the Client as confidential. Red Oak will not reveal Confi- dential Information to a third party unless: 6.2.1 the Client consents in writing; 6.2.2 the information is or becomes part of the 6.2.3 Red Oak lawfully possessed the information before receipt from the Client; public domain; 6.2.4 applicable law, regulation, court order or an agency of competent jurisdiction requires its disclosure; or 6.2.5 failure to disclose the information would pose an imminent and substantial threat to human health or the environment. 6.3 Professional Service. The Service Instruments furnished under this Agreement are the tangible results of Red Oak's Services. Red Oak shall retain ownership and property interests in the Service Instruments whether or not Client completes the Project and Red Oak shall retain sole ownership of pre-existing proprietary property including but not limited to computer programs, software and models. Red Oak does not represent the Service Instruments to be suitable for reuse by Client or others for exten- sions of the Services or on any other project. Any reuse without written verification or adaptation by Red Oak for the specific purpose intended is at Client's sole risk, without liability to Red Oak. Any such verification or adaptation will entitle Red Oak to compensation at rates to be agreed on by the Client and Red Oak. 6.3.1 Except as stated in this Agreement, Red Oak makes no warranty or guarantee, express or Version: Dec 2005 Master STANDARD TERMS AND CONDITIONS FOR PROFESSIONAL SERVICES Between City of Round Rock, Texas and Red Oak Consulting implied, regarding the electronic data furnished by Red Oak or the device or medium in or on which the files are furnished. Without limiting the generality of the preceding statement, Red Oak makes no warranties of merchantability or suitability for any use other than those set forth contained in the Agreement. Red Oak cannot and does not warrant that the electromagnetic data furnished by it will not degrade over time. 6.3.2 Copies of documents that may be relied upon by the Client are limited to the printed copies (also known as hard copies) that are signed or sealed by the' Client. Files on electronic media of text, data or graphics or of other types that are furnished by Red Oak to the Client are only for the convenience of the Client. Any conclusion or information obtained or derived from such electronic file will be at the user's sole risk. 6.3.3 Red Oak makes no representations as to long term performance of electronic media data resulting from the use of software application packages, operating systems, or computer hardware differing from those used by the creator. Red Oak shall not be responsible for the consequences of errors found to exist in standard software products that are sold to the public by commercial vendors. 6.4 Insurance. Red Oak will maintain insurance against the following risks during the term of the Agreement: 6.4.1 workers compensation in statutory amounts and employer's liability for Red Oak's employees' Services -related injuries or disease; 6.4.2 general liability and automobile liability each in the amount of $1,000,000 for personal injury or property damage to third parties which arises from Red Oak's perfor- mance under this Agreement; and Page 8 of 27 6.4.3 professional liability in the amount of $1,000,000 for legal obligations arising out of Red Oak's failure to meet the Standard of Care. 6.5 Limitation of Liability. Notwithstanding any other provision of this Agreement and to the fullest extent permitted by law, Client agrees that Red Oak shall not be liable to the Client for any special, indirect or consequential damages, whether caused or alleged to be caused by Red Oak's negligence, strict liability, breach of contract or warranty under this Agreement. 6.6 Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of New York. 6.7 Successors. This Agreement is binding on the successors and assigns of the Client and Red Oak. The Agreement may not be assigned in whole or in part to any third parties without the written consent of both Client and Red Oak. 6.8 Independent Contractor. Red Oak represents that it is an independent contractor and is not an employee of Client. 6.9 Notices. Written notices may be delivered in person or by certified mail, or by facsimile, or by courier. All notices shall be effective upon the date of receipt by the party. Notices shall be delivered or sent to the designated representative of the other party at the address given on the last page of this Agreement. An address may only be changed by written notice. 6.10 Applicable Law. If applicable to this Agreement, Red Oak will comply with the requirements of: 6.10.1 the Equal Employment Opportunity clause in Section 202 of Executive Order 11246, as amended, 6.10.2 Utilization of Small and Disadvantaged Business Concerns (Public Law 95-507), and Version: Dec 2005 Master STANDARD TERMS AND CONDITIONS FOR PROFESSIONAL SERVICES Between City of Round Rock, Texas and Red Oak Consulting 6.10.3 all other federal, state and local laws and regulations or orders issued under such laws. 6.11 Entire Agreement. This Agreement, including any attachments and referenced documents, is the entire agreement between the Client and the Red Oak. Any prior or contemporaneous agreements, promises, negotia- tions or representations not expressly stated herein are of no force and effect. Any changes to this Agreement shall be in writing and signed by the Client and Red Oak. Page 9 of 27 6.12 Waivers and Severability. A waiver or breach of any term, condition, or covenant by a party shall not constitute a waiver or breach of any other term, condition or covenant. If any court of competent jurisdiction declares a provision of this Agreement invalid, illegal, or otherwise unen- forceable, the remaining provisions of the Agreement shall remain in full force and effect. 6.13 Effective Date. Unless stated otherwise, this Agreement is effective on the date shown on the cover page. Execution Authority. This Agreement is a valid and authorized undertaking of Client and Red Oak. The representatives of Client and Red Oak who have signed below have been authorized to do so. IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement effective as of (CIi By ,:�1� �I Title "1- ALC Date Red Oak Consulting By C. (Kees) W. Corssmit PhD Title Vice President Date 22 March 2007 Version: Dec 2005 Master STANDARD TERMS AND CONDITIONS FOR PROFESSIONAL SERVICES Page 10 of 27 Between City of Round Rock, Texas and Red Oak Consulting ATTACHMENT A Scope of Services and Pricing Schedule 1) Scope of Services. The Scope of Services consists of (Proposal to City of Round Rock, dated March 22, 2007 attached and made part of this Agreement or the following:) a) Proposal Letter dated March 22, 2007. b) X 2) Pricing Schedule. The Pricing Schedule consists of this page plus the following documents attached and made part of this Agreement: a) Summary of Charges: Per attached Letter dated 22 March 2007 b) X 3) Terms of Payment a) Fixed Rates. For Basic Services under Section 1, Client shall pay Malcolm Pirnie on the basis of the terms provided in the Scope of Services Letter dated March 22, 2007. If additional services are requested Red Oak's standard hourly rates will be charged for technical work actually performed. b) Reimbursable Expenses. Except for certain in-house services, project expenses incurred with subcontractors and outside vendors will be invoiced at cost plus 10% to cover handling. These project expenses may include, but are not limited to: shipping charges; printing; supplies; equipment; traveling expenses; special insurance; licenses; permits; and subcontracted services. c) In House Services. In-house services not subject to handling costs are: i) Computer usage: ii) Transportation: iii) Reproduction: iv) Specialty Equipment: $3.60/per labor hour $0.48/mile for vehicles; $0.60/mile for 4x4 vehicles $0.76/per labor hour In accordance with a usage rate schedule d) Invoices. Malcolm Pirnie will submit invoices to Client as stated in our letter dated 22 March, 2007. If additional services are requested invoices will be submitted for each month during which services were performed. Invoices may include carrying charges at 1.5% per month for delinquent payments outstanding over 30 days and applicable sales or value-added taxes. Version: Dec 2005 Master Dr. Corssmit recently joined Malcolm Pirnie's Red Oak Consulting division as a Vice President in the Financial Services group. Prior to this, he served as President of Integrated Utilities Group, a consulting firm specializing in water and wastewater utility economics which was acquired by Red Oak in January of 2007. Before founding Integrated Utilities Group in 1993, Dr. Corssmit was a partner at a large multi- discipline engineering firm, where he established and managed the development of the largest specialized water and wastewater utility economics group in the nation. Dr. Corssmit's career and practice focuses on water and wastewater utility cost of service rates, financing, general economics and management consulting, and economic development issues. He has developed and presented expert testimony before numerous city councils, utility commissions, and similar organizations. He has also served as a judge and arbitrator on rate and valuation disputes. He is the chairman of the American Water Works Association's Rates and Charges Committee, and member of the Wastewater Environment Federation's Financing and Charges Task Force. Dr. Corssmit is the lead author and editor of the book Water Rates, Fees, and the Legal Environment, AWWA, 2005, and a co-author on various ratemaking manuals. DETAILED EXPERIENCE ■ Plumb Creek Wastewater Authority: Wastewater User Charge Study / Castle Rock CO. Project Director for an analysis of wastewater user charges and rate structure. Developed and analyzed three rate structure alternatives for PCWA's wholesale customers. The primary objectives of this study were to develop three alternative rate structures that are easy to understand and that promote equity among PCWA's customers, consider both current capacity investments and future capacity needs, develop rate structures that facilitate service agreements, and assist the Staff and Board in selecting the best rate structure alternative. The Board selected one alternative for implementation. Subsequently, reviewed PCWA's capital replacement program for input into the rate study and then analyzed the user charges for PCWA's reuse water system which were also implemented. ■ City of Omaha: Wastewater Finance Plan and Rate Studies / Omaha NE. Project Director for a comprehensive cost of service study and analysis for wastewater rates to determine the cost of providing wastewater service to customers served by the city's Sewer Revenue Fund. The analysis provided the city with a repeatable and consistent approach to calculating wastewater rates as revenue requirements change in the future. ■ Metro Wastewater Reclamation District: Development Charge Updates / Denver CO. Conducted an extensive review and a series of ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY C. (Kees) Corssmit Project Role: Project Manager Title/Firm: Vice President Red Oak Consulting A division of Malcolm Pirnie Years of Experience 33 Education Ph.D., Water Resource Economics, Washington State University 1973 M.S., Resource Economics, University of Massachusetts 1969 B.S., Economics and Agricultural Commerce, McGill University, Canada 1967 Diploma, Agricultural Engineering, Deventer International Institute of Agriculture, The Netherlands 1965 Societies American Public Works Association American Water Works Association Denver Association of Business Economists National Association of Business Economists Water Environment Federation Water Environment Federation Task Force on Financing and Charges, Member American Water Works Association Financial Management Committee, Member American Water Works Association Rates and Charges Committee, Chair National Association of Business Economists, President, Portland Chapter Member of Various Advisory Boards of Public Utilities Special Recognition Who's Who, Environmental Registry, Citation's 1992 KOAP-TV Oregon Educational and Public Broadcasting Service, Contributing Economist iEl),\K :�)NSU1.i 1NG workshops to assist in modifying Metro's sewer connection charge (a.k.a. development charge) and annual charges. The study included conducting a series of seminars with Metro's Annual Charges Committee to ensure the adopted methodology was based on sound principles and met the needs of agencies with differing rates of growth. • Tualatin Valley Water District: Proposed Regional Drinking Water Agency / Portland OR. Developed a regional cost model (including financing options) used to determine costs for each of the participating agencies in a jointly funded comprehensive study to evaluate the development of a regional drinking water agency. • Expert Testimony / Nationwide. Dr. Corssmit is one of the most experienced water and wastewater utility rate analysts and expert witnesses in the United States. During the last few years he has supervised, or participated in, comprehensive water and, or, wastewater rate studies for the Denver Water Distributors Technical Advisory Committee, City of Los Angeles, Central and West Basin Municipal Water Districts, California, the Cities of Albuquerque and Santa Fe, New Mexico, Plum Creek Wastewater Authority, Arapahoe County Water and Wastewater Authority, Ft. Collins Loveland Water District, Castle Pines Metropolitan District, Purgatory Metropolitan District, Black Hawk/Central City Sanitation District, the Town of Monument, and the City of Brighton, Colorado, the City of Cedar Rapids, Iowa, the City of Fairbanks, Alaska, Municipal Utilities System, and the Northern Colorado Water Conservancy District. He also managed the development of a comprehensive finance plan and rate study for the Central Wyoming Regional Water System, a tap fee study for Arapahoe Water and Wastewater Authority (Colorado), and expert testimony and rate analysis for the city of Missoula, Montana, Butler County, Ohio, and Durango Metropolitan District No. 1 and No. 2. (Colorado). Previous to the above mentioned cases, he also provided expert witness testimony and analysis for the City of Portland, Oregon in a water pollution damages case, the City of Billings, Montana in a comprehensive water rate case, the City of Holland, Michigan, in a wholesale water rate dispute, Durango West Metropolitan District Number 1 in a wholesale water rate dispute, and for Breckenridge Sanitation District and the City of Colorado Springs in wastewater impact fee and rate lawsuits. For FSW (Fairbanks, Alaska) he provided expert testimony in proceedings leading to a complete privatization of the City of Fairbanks' water and wastewater utilities. He also prepared expert witness testimony for the cities of Modesto and Clovis (California) regarding ground water pollution issues. Other significant expert witness analysis and, or, testimony was 7 - ROUND ROCK,TEXAS SSION. PROSPERITY 12 1`L10 ),� I �_a ),\N I I 1'6 given by Dr. Corssmit for Oildale Mutual Water Company, California, Anchorage Water and Wastewater Utilities, the Hammond Sanitary District, Albuquerque Utilities Corporation, and the cities of Vancouver, Washington; Portland, Oregon; and Kalamazoo, Michigan. A number of these assignments involved rate issues between inside and outside users. ■ Rate Studies / Nationwide. Participated in or supervised water, wastewater, and storm water rate studies in more than 300 assignments, including the following: • ALASKA: Anchorage, College Utilities, Central Alaska Utilities, King Cove, Kodiak, Fairbanks, Fairbanks Sewer and Water, and Soldotna, Alaska • CALIFORNIA: Oildale Mutual Water Company, Fresno, Merced, Metropolitan Water of Southern California, Los Angeles, Palm Springs, San Francisco, Sacramento, West and Central Basins, and EBMUD, California • COLORADO: Arapahoe Water and Sanitation District, Arapahoe County Water and Wastewater Authority, Aurora, Bancroft Clover Water and Sanitation District, Breckenridge Sanitation District, Black Hawk/Central City Sanitation District, Buena Vista Sanitation District, Castle Pines Metropolitan District, Cherry Creek Water District, Colorado Renaissance Festival, Colorado Springs, Cottonwood Water and Sanitation District, Denver Water Distributors Technical Advisory Committee, Durango West Metropolitan Districts No.1 and No. 2, Ft. Collins -Loveland Water District, Goldsmith Gulch Sanitation District, Greeley, Grand Junction, Home Builders Association Denver, Idaho Springs, Denver Metro Wastewater Reclamation District, Montrose and Montrose Fire District, Montezuma Water Company, Northern Colorado Water Conservancy District, Platteville, Purgatory Metropolitan District, South -East Englewood Water Board, Southgate Water and Sanitation District, Westminster, Colorado • FLORIDA: City of West Palm Beach, Fort Lauderdale, Oldsmar, Pembroke Pines, Pompano Beach, South Daytona Beach, and Village of Palm Springs, Florida • ILLINOIS: DuPage County and City of Peoria, Illinois • IOWA: Cedar Rapids, Iowa • INDIANA: The Hammond Sanitary District, City of Hobart and Lake Station, Indiana • MASSACHUSETTS: Boston, Massachusetts • MICHIGAN: Holland and Kalamazoo, Michigan • MONTANA: Billings and Missoula, Montana • NEBRASKA: Omaha, Nebraska • NEW MEXICO: Albuquerque Bernalillo County Water Authority, Albuquerque Utilities Corporation, Albuquerque, and Santa Fe, New Mexico • NORTH CAROLINA: Brunswick County, North Carolina • OHIO: Butler County Department of Environmental Services and Huber Heights, Ohio -"ROUND ROCK, TEXAS PURPOSE. PASSION PROSPERITY. lP AA K 11 I INC • OKLAHOMA: Tulsa, Oklahoma • OREGON: Metropolitan Wastewater Management Commission, Multnomah County, Eugene -Springfield, Drainage District No.1 of Multnomah County, East Multnomah County Wastewater District, Eugene -Springfield; Eugene Water and Electric Board, Albany, Coos Bay, Eugene, Forest Grove, Milwaukee, Newport, Portland, Springfield, Gresham, Tualatin Valley Water District, and Fairview, Oregon • UTAH: Salt Lake City, Salt Lake County Water Conservancy District, Utah • WASHINGTON: Clark County, Vancouver, Seattle, Camas, and Bremerton, Washington • WISCONSIN: Milwaukee, Wisconsin • WYOMING: Central Wyoming Regional Water System and City of Gillette, Wyoming PUBLICATIONS & PRESENTATIONS Dr. Corssmit is the author or coauthor of more than 250 reports dealing with water and wastewater economics and economic development. He regularly presents technical papers or speeches to professional and semi-professional organizations on water or wastewater utilities or economic development issues. A selected list of his publications and presentations follows: Defensible Rates and Fees: What makes them Legally Defensible? Principles and Practical Guidance, by C. (Kees) W. Corssmit, Ph.D., Sandra Doyle, CMA, Mark S. Sanchez, RMWEA/AWWA Regional Conference, Albuquerque, New Mexico, September 12, 2005. Water Conservation Rates: Experiences from Colorado's Special Districts from the Past Five Years, by C. (Kees) W. Corssmit, Ph.D. and Jason G. Mumm, Facilitator, Special District Association Annual Convention September 23, 2005, Keystone, Colorado. The New Financing & Charges Manual: Everything You Always Wanted to Know About Rates, with Carol Malesky and others, AWWA/WEF 2005 Joint Management Conference Workshop, Atlanta, GA, February 27, 2005. Water, Rates, Fees and the Legal Environment, by C. (Kees) W. Corssmit, Ph.D., and numerous contributors, Handbook, AWWA, 2005. Financing and Charges for Wastewater Systems, WEF Manual of Practice No. 27, coauthor C. (Kees) W. Corssmit, McGraw Hill 2004. Water Supply Issues and the Denver Metropolitan Area, by C. (Kees) W. Corssmit, Ph.D., Rotary Club of the Denver Tech Center, May 13, 2003, Greenwood Village, Colorado. Rate Setting for Small Water and Wastewater Systems, by C. (Kees) W. Corssmit, Ph.D., Carol F. Malesky, and Jason G. Mumm, National Association of Regulatory Commissioners, Staff Subcommittee on Accounting and Finance, October 1, 2002, Rapid City, South Dakota. Wastewater Impact Fees: A Significant Legal Ruling, by C. (Kees) W. Corssmit, Ph.D., Carol F. Malesky, Jason G. Mumm, and Norman F. Kron, WEFTEC 2002 Conference Proceedings, September, 2002, Chicago, Illinois. Water Rates and Charges and the Legal Environment Workshop, Editor and Co -moderator, with David B. LaFrance and Jason G. Mumm and various other authors, June 16, 2002, Annual American Water Works Association Convention, New Orleans, Louisiana. The Breckenridge Sanitation District Impact Fee Study: A Case Study, by Andy Carlberg, Gene Riordan, and Kees Corssmit, Annual Conference Special District Association of Colorado, Steamboat Springs, Colorado, September 21, 2001. Impact Fees: A Recent Ruling with National Implications, by C. (Kees) W. Corssmit, Ph.D. and Paul L. Matthews, 2001 AWWA Conference and Exposition, Washington D.C., June 21, 2001. ROUND ROCK, TEXAS PURPOSE. RiRS1O..' PROSPERITI: 14 1,110) �-)\ t!i_1IN 1 Challenges of Implementing GASB 34, by C. (Kees) W. Corssmit, Ph.D. and Neil Geitner, P.E., Annual Conference Special District Association of Colorado, Bail, Colorado, September 14, 2000. Fire Protection Cost Allocation, by C. (Kees) W. Corssmit, Ph.D., New AWWA Rate Manual Workshop, AWWA 2000 Annual Conference, Denver, Colorado, June 2000. Wholesale Rates and Wheeling, by C. (Kees) W. Corssmit, Ph.D., Shane Chapman, and Kent Turner, New AWWA Rate Manual Workshop, AWWA 2000 Annual Conference, Denver, Colorado, June 2000. Sell -Off, by C. (Kees) W. Corssmit, Ph.D., Carol F. Streiner, Jeffery D. Brunson, and Bill Gordon, Article in Civil Engineering, November 1998. Institutional Hurdles in Privatization: The Fairbanks Municipal Utilities System, by C. (Kees) W. Corssmit, Ph.D., Carol F. Streiner, and Bill Gordon, presented to the ASCE's 25th Annual Conference of the Water Resources Planning and Management Division in Chicago, Illinois, June 10,1998. Establishing Wastewater Surcharge Program for Commercial Customers, by C. (Kees) W. Corssmit, Ph.D. and Greg Tilley, presented at the RMSAWWA/RMWEA Annual Conference, September 1997. Water Efficient Rate Structures and a Computer Model for Evaluating Conservation Rates. A Pre -Conference Workshop, taught with Edward J. Amatetti and Paul L. Matthews, Annual Conference AWWA, Atlanta, June 15, 1997. FMUS Privatization, by C. (Kees) W. Corssmit, Ph.D., and Jeffrey Brunsdon, CPA, presented to the ASCE 24th Annual Conference of the Water Resources Planning and Management Division in Houston, Texas, April 9,1997. Financial Planning and Cost of Service, A Short Course for Water and Wastewater Utility Engineers, by C. (Kees) W. Corssmit, Ph.D., David S. Backer, P.E., and Carol Streiner, presented to AWWA/WEF in Des Moines Iowa, September 23, 1996. Fire Impact Fees, by C. (Kees) W. Corssmit, Ph.D., Gregory Tilley, and Carol Streiner presented to the Special Districts Association of Colorado, September 20,1996. Basic Elements of Cost of Service. A short course presented to Japan Water Works Association Delegation at the request of American Water Works Association, April 9 and 10, 1996. A Primer on Calculating Fees and Charges, by C. (Kees) W. Corssmit, Ph.D., Paul L. Matthews and Gregory Tilley, presented to the Special District Association of Colorado Workshop, Spring, 1995. Equity and Defensible Water Conservation Rates. Presented at the Annual Meeting of the Rocky Mountain Section, American Water Works Association; Crested Butte, Colorado; September 1994. Water Conservation Strategies --The Right Strategy for the Underlying Need. With Paul L. Matthews and David B. LaFrance. CONSERV '93 Conference. Las Vegas, NV. December 1993. Financing Protocol: A Management Tool for Special Districts. With Newell Wright, Presented to Special Districts Association of Colorado Annual Conference. Breckenridge, Colorado. September 24,1993. Privatization as a Source of Financing --The Presidential Executive Order. With Paul L. Matthews, Presented at the 1993 Rocky Mountain AWWA/WPCA Section Conference. Albuquerque, New Mexico. September 22,1993. Considerations for Privatizing City Services. A paper presented to the American Planning Association Annual Conference. Chicago, Illinois. May 5,1993. Financial Planning and Defensible Water Rates. Presented to the Illinois Section AWWA 84th Annual Meeting. Arlington Heights, Illinois. April 1993. The Presidential Order to Promote Infrastructure Privatization for Municipal Services. Presented to Municipal Management Session of the Pacific Northwest Pollution Control Association Annual Conference. Boise, Idaho. October 1992. Infrastructure Financing Trends: Public and Private Financing, Privatization. Capital Project in Difficult Financial Times Symposium. Lake Lawn, Wisconsin. September 1992. ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPER/TN {5 l AM \ I[ 1 I N V Water and Wastewater Rate Setting for Special Districts. Presented at Special District Association of Colorado. Fifteenth Annual Conference. Vail, Colorado. September 1991. Selecting a Rate Structure: Legal Requirements and Latest Trends. Rocky Mountain Water Pollution Control Association. Denver, Colorado. December 1989. Unit Process Cost Allocations for Wastewater Rate Studies. Proceedings AACE Annual Meeting. New York, New York. July 1988. The Oregon Economy -Now and Five Years From Now. Presented to The Planning forum. Portland, Oregon. January 1988. Pricing of Reclaimed Effluent. Presented at Arizona Water and Pollution Control Association Annual Conference. Tucson, Arizona. May 1987. Wastewater Utility Unit Process Cost Parameter Allocations: Advancing Towards a Scientific Method. With Larson, E.M. and D.M. Mynhier. Presented at the 59th Annual Conference Water Pollution Control Federation. Los Angeles, California. October 1986. Innovations in POTW Financial Management. Planning to Meet Future Needs. AMSA Proceedings. 1985. pp. 40-52. Paying for Reuse Water. Journal AWWA. July 1985. Paying for Reused Water. Alternative Water Sources in the Pacific. Pacific Seminar. CH2M HILL, Honolulu, Hawaii. 1984. Financing Water Reclamation Projects. Rocky Mountain Seminar. CH2M HILL. Denver, Colorado. 1984. Public Works Financing After the Tax Revolt. American Public Works Association Oregon Spring Conference. 1983. ROUND ROCK, TEXAS PURPOSE. PASSION PROSPERIT: RE.0)AK t._Nl_1111;'6 Mr. McCartney's extensive managerial and financial experience includes many organizational studies and numerous rate and financial studies serving both the public and private sector. His experience covers technical areas such as utility cost of service and rate studies, litigation support, economic feasibility analyses, financial, management & operational audits, reviews of policies & procedures, and operating practices, valuation services, utility financial statement analyses, and regulatory rate filing and reporting. DETAILED EXPERIENCE • Fort Worth Water Department - Water Planning & Business Services Department: Senior Finance Manager / Fort Worth TX. • Conducted cost of service/rate studies under the cash and utility basis methods for retail and wholesale customers. • Developed and conducted presentations to credit rating agencies, customer groups, city management, and city council. • Coordinated debt issuances with financial advisors. • Assisted with the preparation of the multimillion dollar departmental budget. • Calculated the revenue budget for entire department. [2005- 2007] • City of Hurst: Accounting Manager / Hurst TX. • Managed investment portfolio (fixed income) of approximately $60 million. • Responsible for the accounting and financial reporting functions. • Supervised the city's treasury management functions. • Responsible for auditor, broker, and bank relationship management. [2004-2005] ■ Rylander Clay & Opitz, LLP: Audit Manager / Fort Worth TX. • Managed all aspects of audit and review service delivery from engagement planning, supervision of audit staff and in -charge seniors, financial statement preparation, presentations to audit committees, to practice management activities such as billing and business development. • Developed an engineering firm's general overhead burden rate for cost-plus contracts in accordance with federal acquisition regulations. • Specialized in audits of small businesses, nonprofit organizations, and local governments. • Expert witness regarding financial matters. (2000-2004] ■ Black & Veach Corporation: Senior Management Consultant / Fort Worth TX. • Conducted cost of service/rate studies for water and wastewater utilities. • Provided financial consulting services in the areas of revenue and debt management as well as bond feasibility studies. ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERIn: Andy McCartney Project Role: Financial Analyst Title/Firm: Senior Associate Red Oak Consulting Division of Malcolm Pirnie Years of Experience 20 Education Bachelor of Business Administration/Finance, Texas A&M University 1987 Bachelor of Business Administration - Accounting, University of Texas, Arlington 1989 BS Economics University of Texas, Arlington 1996 MBA Business Administration/Finance, Dallas Baptist University 1992 License/Certification Certified Public Accountant Certified Valuation Analyst Societies American Institute of Certified Public Accountant Texas Society of Certified Public Accountants Government Finance Officers of Texas National Association of Certified Valuation Analysts American Water Works Association, Texas Section Employment History Malcolm Pirnie, Inc. 2007 to present Fort Worth Water Department 2005 to 2007 City of Hurst, Texas 2004 to 2005 Rylander Clay & Opitz, LLP 2000 to 2004 Black & Veatch Corporation 1999 to 2000 Fort Worth Water Department 1998 to 1999 KPMG, LLP 1996 to 1998 Texas -New Mexico Power Company 1988 to 1996 REto)i\K LON5111 1 ti's; • Assisted customer advisory committees regarding rate design and conservation Issues. • Developed and conducted training of utility rate personnel in performing cost of service studies. [1999-2000] ■ Fort Worth Water Department - Water Administration Department: Senior Utilities Rate Analyst / Fort Worth TX. • Conducted cost of service/rate studies under the cash and utility basis methods for retail and wholesale customers. • Developed and conducted presentations to credit rating agencies. • Assisted with preparation of the official statement for a $98 million revenue bond issuance. • Conducted customer advisory committee meetings for both retail and wholesale customers. • Coordinated preparation of the annual financial and statistical report. [1998-1999] • KPMG, LLP: Senior Auditor / Fort Worth TX. • Performed all aspects of audit planning for large clients such as Alcon Laboratories, and supervised audit staff members performing internal control testing and audit sampling. • Audited areas such as inventory, receivables, payables, cash, debt, equity, and fixed assets. • Worked on a client's multimillion dollar capital project as an internal auditor. [1996-1998] • Texas -New Mexico Power Company - Power Resources Department: Senior Analyst / Fort Worth TX. • Assisted with preparation of monthly and annual financial statements. • Assisted with preparation of SEC filings (10-K, 10-Q, and 8-K). • Participated in reengineering the annual operations and maintenance budgeting process as well as the capital budgeting process. • Assisted with preparation of cost of service studies and rate filings with the Public Utility Commission of Texas. • Calculated monthly purchased power and fuel cost recovery factors. • Developed special rate proposals for industrial class customers. [1988-1996] ..ROUND ROCK, TEXAS 5 JRPOSE PfrSSIOV. PROSPERITY. 1;,1,10),\ �. LUNY, i I_ Mr. Rabalais has more than 20 years of experience in the civil/environmental field. As project manager, his primary emphasis has been in process and detailed design of municipal and industrial treatment systems for both conventional and design -build delivery methods. He has been responsible for the management and engineering of projects with a combined construction value of over $250 million. His background includes program management, planning and feasibility studies for water and wastewater facilities, predesign reports, design of municipal and industrial water and wastewater treatment systems, design/build projects for municipal water plants, design of aquarium life support system, and construction management services. DETAILED EXPERIENCE • City of McAllen: Northwest Water Treatment Plant / McAllen TX. Project manager for a development report that included an assessment of an existing City -owned site, wetlands permitting, development of the treatment process (high -rate conventional with chlorine dioxide disinfection), sizing of the facility for a 25 - yr growth period, and a rate analysis that included options for wholesale of water and assessment of impact fees. • City of Houston: Public Utilities Support Program / Houston TX. Deputy Program Manager responsible for the daily operations of the $7.5 million City of Houston Public Utilities Support Program. The program covers a variety of services to the Wastewater Operations Branch of the City's Public Utilities Division. While overseeing a full-time staff of approximately 40, with additional supplemental staff being furnished by 12 subconsultants, the program provides the following services: • Engineering analysis of neighborhood basins for condition and capacity. • Construction administration of approximately $30 million (annual) structural pipe rehabilitation. • Capacity and condition assessment of over 350 lift stations. • Geographic Information Management Systems updating and correction. • Capital project planning and development. • Detailed design of special and emergency projects. • Regulatory responses and coordination. • Development of long term control plans for permit compliance. • Excursion and SSO tracking, response, and correction. • Capacity, Management, Operations, and Maintenance (CMOM) Plan. • Bexar Metropolitan Development Corporation: Medio Creek Ranch Water 'Treatment Plant / San Antonio TX. Led a pilot study of membrane technology for the Bexar Metropolitan Development Corporation. The objective of the study was to develop design criteria for the sizing of three different membrane processes, 11) ROUND ROCK, TEXAS PURPOSE. PNSSION. PROSPERITY Gary P. Rabalais Project Role: Project Engineer Title/Firm: Senior Associate Malcolm Pirnie, Inc. Years of Experience 24 Education Program completed in BSCE Civil Engineering Louisiana State University 1982 Licenses and Certifications Professional Engineer Employment History Malcolm Pirnie, Inc. 2004 to present Montgomery Watson Harza 1983 to 2004 US Army Corps of Engineers New Orleans District 1983 1:l_10) \ determine operational costs, and evaluate overall performance. Data from the study was used for bidding and procurement or the membranes. The pilot study included an IDI SUPERPULSATOR for membrane pretreatment for removal of organics, and parallel Aquasource and KOCH ultra filtration membranes, and MEMCOR micro filtration membranes. Following the pilot study and membrane procurement, Mr. Rabalais prepared the conceptual design for a 9.6 mgd plant. The conceptual design included site layout, equipment sizing, design and operation criteria, and process and instrumentation diagrams. As an alternative to the membrane process, a conventional process was engineered and priced. The membrane process proved economically viable and was implemented using a design / build project delivery approach. • City of Houston: Plant 1 & 2 Filter Upgrade Project / Houston TX. Completed a predesign report of the filtration processes for the East Water Purification Plant. Evaluation of the 36 filters (combined filtration area of over 46,000 sq. ft.) included a review of historical data, media coring and analysis, backwash testing, and development of conceptual designs and costs for new media, surface wash systems, wash troughs, concrete repair, addition of a filter -to -waste system, valve replacement, replacement of field instrumentation, and a new PLC -based control system. The evaluation led to rehabilitation and improvements projects for both Plants 1 and 2. The work included new actuated filter valves, media, fiberglass wash troughs, rehabilitation of existing rotating arm surface wash system, and design of a new filter -to waste piping and pumping system. The project included a new alum feed system including transfer pumps, diaphragm metering pumps, day tank, instrumentation, and on-line analyzers. The existing waste wash -water pump station storage volume was doubled and was provided with three new pumps, a new 30" force main, and forebay outfall. The new PLC control system can automatically backwash the filters, and provides flow control for the filters. A similar project was designed and constructed for improving the eight Plant 2 filters. In addition to the filter and alum feed system improvements, the tow sedimentation basins were retro -fitted with tube settlers and submerged orifice launders to increase the hydraulic capacity of the basins while still providing high quality settled water to the filters. • City of Dallas: SWWTP Solids Screening and Thickening Facility and Odor Control Improvements / Dallas TX. Quality control reviewer for the improvements to the solids screening and thickening ROUND ROCK. TEXAS I ORPOSE. PASSION PROSPERITY. ?(1 !\L 0)f\' facility. The project scope included the redesign of the building's odor control system (ventilation system and sand media biofilter), modifications to the GBT filtrate drain system, addition of a 44,000-scfm organic media biofilter, odor control fans, ventilation fans, instrument air supply system, etc. • City of Houston: Sims Bayou Wastewater Model / Houston TX. Project manager for development of a planning tool for the City of Houston Sims Bayou Service area. The INFOWORKS computer model will be used to model the 4.4. million ft. long collection system network to determine future capacity, rehabilitation, and treatment needs for regulatory compliance. The model building effort includes survey of over 2,200 manholes and capacity testing of 30 lift stations for the 26,000 acre area. Intensive flow monitoring using 130 meters will be undertaken to collect rainfall and flow data for model calibration. • City of Houston: Willowrun Wastewater Treatment Plant / Houston TX. Completed the fast-track design of repairs to the 36" diameter Dedrick force main the 30" diameter Fannin St. Bridge vent pipe, and Willow run WWTP for the City of Houston. The projects were declared emergencies by the City, and involved emergency procurement procedures to implement nearly $600 thousand of construction improvements. ■ Escambia County Utilities Authority: Main Street Wastewater Treatment Plant Odor Study / Pensacola FL. Project engineer on an odor control study of a 20-mgd pure oxygen tertiary wastewater treatment plant for the Escambia County Utilities Authority in Pensacola, Florida. The study included an odor panel and sampling of the process units within the plant, as well as upstream pumping stations. Te study evaluated odor control alternatives, and included treatment systems such as wet scrubbers, incineration, chemical addition, as well as process modifications to minimize odors. He also conducted a hydraulic and treatment capacity evaluation of the plant and developed alternatives for upgrading the plant to 30 mgd while providing full nitrification and denitrification. • Hampton Road Sanitation District: Williamsburg Virginia Wastewater Treatment Plant / Williamsburg VA. Project engineer for the design of a plant expansion of the Williamsburg, Virginia WWTP (22.5 mgd expandable to 30.0 mgd). The project included a new headworks with screening, septage unloading, and aerated grit chambers, primary clarifiers, high rate oxidation towers, intermediate clarifiers, aeration basins with three 22,000 cfm (900 hp) centrigfugal blowers, secondary clarifiers, and chlorine and sulfur dioxide contact basins. Primary sludge is thickened with gravity thickeners, and intermediate and secondary sludge is thickened with four 3.0 meter gravity belt thickeners. The ''~ROUND ROCK, TEXAS PURPOSE. PASSION PROSPERITY, 21 11O)r\K sludges are blended prior to dewatering with plate and frame filter presses, then incinerated. Single and two —stage packed bed scrubbers were provided to treat odorous air collected from the headworks, primary clarifiers, oxidation towers, intermediate clarifiers, and gravity belt building. ■ International Boundary and Water Commission: Water and Wastewater Master Plan / Matamoros Mexico. Project engineer for a master plan for water and wastewater for the City of Matamoras, Mexico. This major border city; population of 350,000, is expected to more than double by the year 2020. The project objective was to develop a long-term plan for infrastructure improvements to meet the needs for this new growth. Initial tasks include aerial photography, field survey of the existing pipelines, pump station, storage tanks, treatment facilities, digital mapping, wastewater flow monitoring and characterization, and water distribution system flow and pressure monitoring. The master plan included planning for wastewater treatment and re- use, evaluation of new sources for drinking water, expansion and upgrade of the water treatment plants, and cost-effective analysis of system improvements using computer modeling. PUBLICATIONS Rabalais, G.P., "Membrane Filtration of Dirty Filter Backwash Waste," presented at the Joint Conference of the Water Environment Association of Texas and American Water Works Association, Texas Section (Texas Water 2003), Corpus Christi TX, April 1-4, 2003. Rabalais, G.P., "Enhanced Coagulation for Compliance with the Stage 1 D/DBP Rule," presented at the Joint Annual Conference of the American Water Works Association and Water Environment Association of Texas, TX, April 2000. Rabalais, G.P., Wei, Y., "Ozone as an Alternative Disinfectant," presented at the Joint Annual Conference of the Water Environment Association of Texas and the American Water Works Association, Texas Section, TX, April 2000. Rabalais, G.P., "Trends in Technology - Alternatives for Compliance with the Interim Enhanced SWTR and the Stage 1 D/DBP Rule," presented at the Texas Water Utility Operators Short School, March 2000. Rabalais, G.P., Hulbert, R.W., "Requirements of the Disinfection By-products Rule," presented at the Joint Annual Conference of the American Water Works Association and Water Environment Association of Texas, TX, April 1999. Rabalais, G.P., "Trends in Technology - Membrane Filtration," presented at the Texas Water Utility Operators Short School, March 1999. Rabalais, G.P., Hulbert, R.W., "Implementation of a Large Scale Pilot Facility for the East Purification Plant," presented at the Houston Lighting and Power Municipal Water/Wastewater Seminar, Houston TX, August 1997. Rabalais, G.P., Joyce, J.J., Taylor, F., Evans, K., "Odor Control in Pensacola, Florida," presented at the Joint Annual Conference of the American Water Works Association Florida Section / Florida Water Pollution Control Association / Florida Water and Pollution Control Operators Association, Miami FL, November 14-18,1987. Rabalais, G.P., Chow, B.M., White, S.C., "Design for Computer -Aided Water Resource Planning," Water Forum '86: Water /ssues in Evolution, M. Choriomas, G.R. "ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY 1l [10),\I\ ( 11 1 I N.(1 Baumli, W.J. Brick, eds., Conference Proceedings, Vol. 2. ASCE Press, Washington DC, August 1986. AROUND ROCK TEXAS PURPOSE- PASSION. PROSPERITY Mr. Sklar is the Asset Management Practice Leader for Red Oak Consulting and brings over twelve years of experience across the water, wastewater, and electric utility industries. His projects have included extensive international exposure across North America, Europe, Australia, and New Zealand. Mr. Sklar has led asset management and capital planning projects for water and wastewater utilities across the US, developed and managed international benchmarking programs, as well as led several projects examining network performance and regulatory strategy for some of the largest electric utilities in the UK. In addition, Mr. Sklar has developed and facilitated numerous Asset Management training workshops in both the US and Europe. He is a frequent speaker and author on the topic of Asset Management and Performance Management and has presented at many industry conferences including AWWA, WEF, IWA, IEEE and the US Conference of Mayors Urban Water Council. Mr. Sklar's key skills and areas of expertise include asset management strategy, benchmarking, KPI/balanced scorecard implementation, operational best practices, business process optimization, regulatory strategy, business and systems analysis, and project management. DETAILED EXPERIENCE • Erie County Dept. of Environment and Planning: Asset Management Capital Planning and Prioritization / Buffalo NY. This ongoing project includes the development of an asset management focused capital planning and prioritization methodology. Scope includes a baseline condition assessment of major plant and buried assets, evaluation of strategic business drivers, development of project prioritization methodologies, and preparation of the final CIP document, including a detailed rate and financial impact analysis. As a final task, technical and functional requirements for a CMMS system will be developed along with standard policies and procedures, followed by formal vendor evaluation and selection. • Spartanburg Water System and Sanitary Sewer District: CIP Workshops / Spartanburg SC. Facilitated a series of workshops for management and staff and developed business processes and tools to implement a formal CIP approach across the organization. The goal of the project was to help ensure that optimal capital projects are selected and implemented consistent with asset management practice including: cost/benefit analysis, project review and prioritization, criticality determination, and service level impacts. "ROUND ROCK, TEXAS PURPOSE. FISSION PROSPERITY. 24 Dave C. Sklar Project Role: Asset Management Title/Firm: Principal Consultant Red Oak Consulting Division of Malcolm Pirnie Years of Experience 12 Education BA Economics Boston University 1992 Employment History Malcolm Pirnie, Inc. 2005 to present MWH (TAG - The Asset Group) 2003 to 2005 Business Edge Solutions 2000 to 2001 UMS Group UK 1998 to 2000 UMS Group Inc.1993 to 1998 The project included the development of key service level metrics, project business cases and prioritization tools, and a public and stakeholder support program. ■ City of Phoenix, Water Distribution and Wastewater Collection Division: Performance Management and Organizational Improvement Strategy / Phoenix AZ. Facilitated several business process improvement teams across water distribution and wastewater collection including water distribution system maintenance and reliability, collection system operations, recruiting / hiring, and development, and dispatch. Also worked with the utility's senior management team to define key performance and service level measures across water distribution and wastewater collection divisions. • City of Delaware: Asset Management CMMS and GIS Program / Delaware OH. This ongoing project includes the development of formal asset management policies and procedures for both the water and wastewater utility. The scope encompasses the establishment of service levels and performance measures, asset condition and criticality criteria (include plant and buried assets), and asset and project prioritization methodologies. Following the development of policies and procedures, the project will focus on defining the functional and technical requirements for a Computerized Maintenance Management Software (CMMS). This will include the final vendor selection and implementation, work process definition, configuration, data conversion, and integration with GIS. • Ojai Valley Sanitary District: Collection System CIP / Ojai CA. Project Manager for the development of a comprehensive 25 year capital improvement plan for the wastewater collection system. The focus of the project was to provide a formal long-term asset enhancement, renewal, and replacement plan and capital investment strategy that was both financially sound and supported long term sustainability. The plan provided a long term planning tool for OVSD's management team, as well as a communication mechanism to the board and other key stakeholders. Project tasks included asset inventory and condition assessment, prioritization of required capital projects, and a 25 year financial forecast. • Ojai Valley Sanitary District: Wastewater Treatment Plant Capital Improvement Plan / Ojai CA. Project Manager for the development of a long-term capital improvement plan (CIP) for the wastewater treatment plant. The project scope includes a detailed asset inventory, condition assessment, asset valuation, and expected remaining life estimate for all major assets. The goal of the project is to develop a 25 year capital expenditure forecast and assess the likely impact on rates, reserves, and 'ROUND ROCK, TEXAS PURPOSE PASSION. PROSPERITY. • Beaufort Jasper Water & Sewer Authority: Asset Management / CIP Workshops / Okatie SC. Facilitated a series of workshops to review, analyze, and prioritize proposed water and wastewater CIP projects. Project business cases were developed and prioritized utilizing asset management methodologies and tools. The workshop included a detailed review of business cases, development of business drivers and weighting criteria, NPV and ROI financial analysis, and final project ranking and scoring. • City of Fort Wayne: Asset Management and CIP Workshops / Fort Wayne IN. Facilitated a series of workshops to review, analyze, and prioritize proposed water and wastewater CIP projects. Project business cases were developed and prioritized utilizing asset management methodologies and tools. The workshop included a detailed review of business cases, development of business drivers and weighting criteria, NPV and ROI financial analysis, and final project ranking and scoring. • Birmingham Water Works Board: Performance Management and Organizational Assessment / Birmingham AL. Currently working with the senior management team to develop enterprise wide performance metrics and measurement systems that are aligned with the board's strategic business plan goals. In addition, the project includes a comprehensive organizational assessment covering key business functions and processes including operations and maintenance, engineering, customer service, finance, human resources, and compliance/reporting. • City of Atlanta Department of Watershed Management: Performance Improvement, Bureau of Drinking Water / Atlanta GA. Senior Consultant and Project Lead for a team providing strategic support for one of the largest municipal utilities on the East Coast, The City of Atlanta Department of Watershed Management. As part of this effort, Mr. Sklar worked with the Commissioner and Senior Management to develop a high-level performance management and improvement strategy. This project included the implementation of a utility wide performance scorecard, as well as business process redesign across several key functions including: new meter installations, operations and maintenance, procurement, revenue collection and billing, and customer service. PUBLICATIONS Sklar, D.C., "Asset Management and its Alignment with Effective Utility Management," Water Asset Management lnternationa/2.3, pp.13-15, September 2006. IWA Publishing 2006. Westerhoff, G.P., Pomerance, H., Sklar, D.C., "Envisioning the Future Water Utility," Journal of the American Water Works Association, Vol. 97, No.11, pp. 67-74, November 2005. "ROUND ROCK TEXAS PURPOSE. PASSION, PROSPERITY. 26 Rt O);1k t'� \.` t!1 1 1 +-, Sklar, D.C., "Aligning Asset Management Strategy with Service Level Objectives," Proceedings, 124th Annual Conference and Exposition of the American Water Works Association, San Francisco CA, June 12-16, 2005. Sklar, D.C., "Starting an Asset Management Plan -- Objectives a Water or Wastewater Utility Should Meet," Public Works, 2005 Manual, Spring 2005. Sklar, D.C., "Performance Measurement and Reporting," Proceedings, Water Environment Federation 'Hot Topics' Workshop on Asset Management for Water and Wastewater Utilities, Albuquerque NM, March 29-30, 2005. Sklar, D.C., et al., "Establishing Service Levels -- The Driving Force of a Utility," Journal of the American Water Works Association, Vol. 97, No.1, January 2005. Sklar, D.C., "Asset Management and Performance Management," presented at an Asset Management Panel Discussion, Annual Conference of the American Water Works Association, Orlando FL, June 2004. Sklar, D.C., "Principles of Asset Management -- The Holistic Model," www.energypulse.net and in Asset Management, Special Issue, March 2004. Sklar, D.C., "A Holistic Approach to Asset Management Drives Sustainable Performance Improvement," presented at the Spring Conference of the American Water Works Association, New England Section, Worcester MA, March 2004; and the Joint Conference of the Water Environment Association of Texas and American Water Works Association, Texas Section (Texas Water 2004), Arlington TX, April 5-8, 2004. Sklar, D.C., "Managing Urban Water Infrastructure Assets," presented at the U.S. Conference of Mayors, Urban Water Summit, Washington DC, Septemberl0-12, 2003 and April 27-28, 2004. ROUND ROCK, TEXAS PURPOSE. MSSION. PROSPERITY. RH0),AK {1N(1 DATE: April 25, 2007 SUBJECT: City Manager - April 27, 2007 ITEM: Consider a Resolution authorizing the City Manager to sign an agreement with Red Oak Consulting for financial analysis services associated with the Regional Wastewater plant. Department: Finance Staff Person: Cindy Demers, Finance Director Justification: This is a limited, fixed fee engagement to assist the Brushy Creek Regional Wastewater customers assess the escalating costs being charged to the customers by LCRA/BRA. The scope is defined by two specific tasks. (1) to conduct a wholesale rate survey of similar facilities in Texas and (2) to review current and historical cost data and cost allocation methodologies and provide observations. Funding: Cost: $16,500 Source of funds: Utility Fund Outside Resources: Background Information: Public Comment: The cities of Round Rock, Cedar Park, Leander, and Austin have all agreed to pay a prorata share of the study.