CM-12-02-031Item Caption:
Approval Date:
Civl1 i--
CIty
Manager Approval Form
RE "r='VED
FEB 092012
Consider executing Supplemental Agreement No. 1 with Black & Veatch Corporation for an additional $1i
February 10, 2012
Department Name: Finance Department
Project Manager: Becca Ramsey
Assigned Attorney: JKay Gavle
Item Summary:
The City maintains a utility rate model that is used to determine the water and sewer rates for our customers. This model
determines the cost to provide these services. This is a supplemental agreement with Black & Veatch Corporation for assistance
in developing a high level analysis in revising the current water rate structure. They are assisting us developing a strategy that
will determine the impact a year-round rate structure and the impact on rates.
No. of Originals Submitted:
Project Name: Supplemental Agreement for Consulting for Water and Wastewater Rate Study
Cost: $15,000.00
Source of Funds: Utility Fund
Source of Funds (if applicable): Select Source Fund
Account Number: 5216-200-40000
Finance Director Approval: Cheryl Delaney
Date: 2/6/12
Department Director Approval: Cheryl Delaney Date: 2/6/12
**Electronic signature by the Director is acceptable. Please only submit ONE approval form per item. **
CIP ❑111 Budget
❑ ❑✓
N/A OK N/A OK
Purchasing ❑ Accounting ❑ ❑
N/A OK N/A OK
ITEMS WILL NOT BE PLACED ON THE COUNCIL OR CM AGENDA W/OUT PRIOR FINANCE AND/OR LEGAL APPROVAL
REV. 6/20/11
SUPPLEMENTAL AGREEMENT NO. 1
TO " CITY OF ROUND ROCK AGREEMENT FOR CONSULTING
SERVICES FOR WATER AND WASTEWATER RATE STUDIES
WITH BLACK & VEATCH CORPORATION"
CITY OF ROUND ROCK
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
COUNTY OF TRAVIS
FIRM:
ADDRESS:
KNOW ALL BY THESE PRESENTS:
Black & Veatch Corporation
1300 Summit Avenue, Suite 400, Fort Worth, Texas 76102
This Supplemental Agreement No. 1 to "City of Round Rock Agreement for Consulting Services
for Water and Wastewater Rate Studies with Black & Veatch Corporation" is made by and between the
City of Round Rock, Texas (hereinafter called the "City"), and Black & Veatch Corporation (hereinafter
called the "Consultant" or "Black & Veatch").
WHEREAS, City and Consultant executed the referenced Agreement (hereinafter called the
"Agreement") on the 21st day of the month of October, 2011; and
WHEREAS, it has now become necessary to execute Supplemental Agreement No. 1 to provide
a scope of services change to the Agreement; to add additional fees therefor; and to extend the contract
term;
NOW, THEREFORE, premises considered, City and Consultant agree that said Agreement is
amended as follows:
I.
A scope of services addition shall be made to the Agreement, and said addition shall be entitled
"Exhibit A-1 Scope of Consultative Services Regarding Retail Water Rate Structure." Said
Exhibit A-1 is attached hereto and incorporated herein for all purposes as though recited
verbatim.
II.
Section 1.05 shall be amended to provide for an additional $15,000.00 in payment for the scope
of services addition delineated in Exhibit A-1, and shall now read as follows:
Payment for Basic Services: In consideration for the consulting services to be performed by
Consultant, City agrees to pay Consultant the following sum(s): $52,000.00.
Unless subsequently changed by additional Supplemental Agreement to this Agreement, duly
authorized by City Council or City Manager action, Consultant's total compensation hereunder
shall not exceed $52,000.00 including any Reimbursable Expenses. This amount represents the
absolute limit of City's liability to Consultant hereunder unless same shall be changed by
additional Supplemental Agreement hereto.
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OSI
All other portions of Section 1.05 shall remain in place as originally written, with no modification
or alteration.
All services described in the attached exhibits shall be performed for the originally -contracted
total sum of $37,000.00, with an added fee of $15,000.00 for the scope of services addition made in
Supplemental Agreement No. 1, totaling $52,000.00.
Section 1.06 shall be amended to provide for additional time to the original contract term for the
scope of' services addition delineated in Exhibit A-1, and shall now read as follows:
Unless otherwise indicated to Consultant in writing by City, or unless Consultant is unreasonably
delayed in the orderly progress of its work by forces beyond Consultant's control, the following
timetable structure and deliverable due dates shall apply: 180 days from date of execution
hereof.
IV.
The subsection entitled "No Reimbursable Expenses" under Section 1.07 shall be amended to
read as follows:
No Reimbursable Expenses. No additional reimbursable expenses, over and above the total
payment amount of $52,000.00, are authorized hereunder. Travel expenses up to the maximum
amount of $3,000.00 are included in the total payment amount of $52,000.00.
IN WITNESS WHEREOF, the City and Black & Veatch have executed this Supplemental
Agreement No. 1 in duplicate originals.
CITY OF ROUND ROCK, TEXAS BLACK & VEATCH CORPORATION
By:
Printed Name:
Title:
Date Signed:
FOR CITY, ATTEST:
By:
By: /11Aeorusia �.
Printed Name: Thomas R. Peterson
Title: Vice President
Date Signed: 01/25/2012
Oft Approved by Legal(Grimaldi) 01/25/2012.
Approved by PM(R. Campbell) e-mail 01/25/2012.
FOR CITY APPROVED AS TO FORM:
By:
Stepha L. Sheets, City Attorney
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Black & Veatch Corporation
October 2011
CITY OF ROUND ROCK
Scope of Consultative Services Regarding Retail Water Rate Structure
Scone of Services
Black & Veatch Corporation ("Black & Veatch") will serve as an independent consultant
to the City of Round Rock ("Round Rock") for evaluating various scenario or "what -if"
analyses of revenue recovery from the potential changes to the retail water rate structure.
Round Rock has indicated that it is interested in reviewing the current seasonal two-tiered
rate structure for effectiveness; evaluating the merit of adding additional tiers for
encouraging conservation; and, possibly escalating the rate per block for each stage of
Round Rock's Drought Management Plan beyond Stage 1. Specifically, Black & Veatch
anticipates providing consultative services in the following areas:
• Proposed Rates — Objectives & Goals. Initially, Black & Veatch will provide assistance to
Round Rock Staff in developing a high level analysis and presentation to the Round Rock
City Council seeking direction in revising the current water rate structure. Based on the
outcome of this presentation,_ Black & Veatch will assist Round Rock with the evaluation of
any identified potential water rate structures. Potential revisions to the existing retail water
rate structures will be reviewed and evaluated for use in meeting water service policies,
pricing and conservation objectives, cost of service recovery and conservation goals, and any
practical limitations. Water rate structure changes will also be reviewed for flexibility so
Round Rock is able to respond to water supply issues affecting its service area in the future.
Black & Veatch will evaluate proposed schedules of retail water rates recognizing the
following:
A Recovery of total revenues needed for utility enterprise operations.
♦ Development of rate structures, where appropriate, that will provide proper pricing
signals to encourage more efficient water usage and assist in the conservation of Round
Rock's water resources.
♦ Water utility service policies.
O Recognition of allocated costs of service and proportional cost recovery by customer
class.
• Equitable recovery of costs for the water utility and/or class of service.
A Practical considerations and needs.
• Proposed Rate Revenue Adequacy. Black & Veatch will compare revenues expected from
each customer class under the proposed water rates to examine the adequacy of cost recovery
by individual customer classes and for the water system in general.
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EXHIBIT
"A-1"
Consultant Fee
Black & Veatch's fee for providing the consultative services identified herein are not
expected to exceed $20,000. Black & Veatch proposes to use Andy McCartney (Billing
Rate = $170/Hour) and Richard Campbell (Billing Rate = $200/Hour) for these services.
Invoices will be submitted monthly based upon the actual work performed in that month
and the actual expenses incurred. All other invoice and billing provisions contained in
the Master Agreement between Round Rock and Black & Veatch will apply. The
referenced Master Agreement is the current contract between Black & Veatch and Round
Rock for consulting work dated October 12, 2011.
Project Schedule
Black & Veatch's services shall begin after November 1, 2011 with the work anticipated
to be completed within 180 days.
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