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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: October 22, 2019 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Raftelis Financial Consultants, Inc., for Water and Wastewater Utilities Cost of Service and Rate Design Study as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7105 – Professional Services Agreement for Water and Wastewater Utilities Cost of Service and Rate Design Study awarded to Raftelis Financial Consultants, Inc., in the not-to-exceed amount of $108,470). The Public Utilities Board recommends approval (6 - 0). RFQ INFORMATION/BACKGROUND The Water and Wastewater Utilities has contracted for outside consulting services to perform the cost of service and rate design analyses approximately every five years. Contracts with our wholesale customers also require a rate study to be performed by an outside consultant within the same timeframe. During interim years, in-house financial staff members perform these studies. These consulting services provide expertise in reviewing all departmental costs (both direct and indirect) and allocation processes, which helps to ensure rates to ensure among all rate classes. Although separate Water and Wastewater rate studies could be accomplished, the close operational relationship between the two utilities makes it technically and financially desirable to complete the studies in one coordinated effort. An external Water and Wastewater cost of service/rate design study was included in the FY 2019-2020 operating budget. Their project team will consist of Mr. Rick Giardina, as project director. Ms. Angie Flores will serve as the project manager and Mr. Todd Cristiano will serve as a Quality Assurance/Quality Control (QA/QC) Manager. Additional analytical support will be provided by supporting staff. Raftelis Financial Consultants, Inc., have been involved in numerous water and wastewater cost of service analyses across the United States and in Texas. Request for Qualifications (RFQ) for professional consulting services was sent to 397 prospective firms for these services. In addition, the RFQ was placed on the Materials Management website for prospective respondents to download, and advertised in the local newspaper. Based upon this evaluation, the recommended award is to Raftelis Financial Consultants, Inc., and is determined to be the most qualified firm for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 918 – Consulting Services Notifications sent for Solicitation sent in IonWave: 397 Number of Suppliers that viewed Solicitation in IonWave: 10 HUB-Historically Underutilized Business Invitations sent out: 33 SBE-Small Business Enterprise Invitations sent out: 172 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (Council, Boards, Commissions) On October 14, 2019, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Raftelis Financial Consultants, Inc., for the supply of Water and Wastewater Utilities Cost of Service and Rate Design Study services for the Water and Wastewater Utilities, in a not-to-exceed amount of $108,470. PRINCIPAL PLACE OF BUSINESS Raftelis Financial Consultants, Inc. Austin, TX ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion date by May 31, 2020. FISCAL INFORMATION These services will be funded from Water and Wastewater Administration accounts 630430517 and 640408541. Requisition #143782 has been entered into the Purchasing software system in the amount of $108,470. The budgeted amount for this item is $108,470. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Tab Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Kenneth Banks, 940-349-7165. Legal point of contact: Mack Reinwand at 940-349-8333.