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7628 - Contract Executed
Docusign City Council Transmittal Coversheet
File Name
Purchasing Contact
City Council Target Date
Piggy Back Option
Contract Expiration
Ordinance
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
7628
Cost of Service Study
Christa Christian
Not Applicable
RFQ
MAY 4, 2021
MAY 4, 2026
21-806
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 1 of 14
PROFESSIONAL SERVICES AGREEMENT
FOR CONSULTING SERVICES
FILE 7628
STATE OF TEXAS §
COUNTY OF DENTON §
THIS AGREEMENT (the “Agreement”) is made and entered into on
________________________, by and between the City of Denton, Texas, a Texas municipal
corporation, with its principal office at 215 East McKinney Street, Denton, Denton County,
Texas 76201, hereinafter called “OWNER” and NewGen Strategies and Solutions, LLC with its
corporate office at 225 Union Blvd., Suite 305, Lakewood, CO 80228, hereinafter called
“CONSULTANT,” acting herein, by and through their duly authorized representatives.
WITNESSETH, that in consideration of the covenants and agreements herein contained,
the parties hereto do mutually agree as follows:
ARTICLE I
CONSULTANT AS INDEPENDENT CONTRACTOR
The OWNER has selected CONSULTANT on the basis of demonstrated competence and
qualifications to perform the services herein described for a fair and reasonable price pursuant to
Chapter 2254 of the Texas Government Code. The OWNER hereby contracts with the
CONSULTANT as an independent contractor and not as an employee, and as such, the OWNER
will not assert control over the day-to-day operations of the CONSULTANT. The
CONSULTANT is customarily engaged to provide services as described herein independently
and on a nonexclusive basis in the course of its business. This Agreement does not in any way
constitute a joint venture between OWNER and CONSULTANT. The CONSULTANT hereby
agrees to perform the services described herein based on the skills required for the scope of work
in connection with the Project as stated in the sections to follow, with diligence and in
accordance with the highest professional standards customarily obtained for such services in the
State of Texas. The professional services set out herein are in connection with the following
described project:
The Project shall include, without limitation, Electrical Cost of Service Study, as
described in Exhibit A, which is on file at the purchasing office and incorporated herein
(the “Project”).
ARTICLE II
SCOPE OF BASIC SERVICES
The CONSULTANT shall perform the following services in a professional manner:
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
05/04/2021
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 2 of 14
A. The CONSULTANT shall perform all those services as necessary and as described in the
OWNER’s RFQ 7628 – Electric Cost of Service Study which is on file at the purchasing
office and made a part hereof as Exhibit A as if written word for word herein.
B. To perform all those services set forth in CONSULTANT’s proposal, which proposal is
attached hereto and made a part hereof as Exhibit B as if written word for word herein.
C. CONSULTANT shall perform all those services set forth in individual task orders, as
described in Exhibit B, which shall be attached to this Agreement and made a part
hereof.
D. If there is any conflict between the terms of this Agreement and the exhibits attached to
this Agreement, the terms and conditions of this Agreement will control over the terms
and conditions of the attached exhibits or task orders.
ARTICLE III
ADDITIONAL SERVICES
Additional services to be performed by the CONSULTANT, if authorized by the
OWNER, which are not included in the above-described Basic Services, may be negotiated as
needed, per rates included in Exhibit B.
A. Preparing applications and supporting documents for government grants, loans, or
planning advances and providing data for detailed applications.
B. Preparing data and reports for assistance to OWNER in preparation for hearings before
regulatory agencies, courts, arbitration panels or mediator, giving testimony, personally or
by deposition, and preparations therefore before any regulatory agency, court, arbitration
panel or mediator.
C. Assisting OWNER in preparing for, or appearing at litigation, mediation, arbitration,
dispute review boards, or other legal and/or administrative proceedings in the defense or
prosecution of claims disputes with Contractor(s).
D. Assisting OWNER in the defense or prosecution of litigation in connection with or in
addition to those services contemplated by this AGREEMENT. Such services, if any, shall
be furnished by CONSULTANT on a fee basis negotiated by the respective parties outside
of and in addition to this AGREEMENT.
E. Visits to the site in excess of the number of trips included in Exhibit B.
F. Preparing statements for invoicing or other documentation for billing other than for the
standard invoice for services attached to this professional services agreement.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 3 of 14
ARTICLE IV
TIME OF COMPLETION
CONSULTANT is authorized to commence work under this contract upon execution of this
AGREEMENT. CONSULTANT shall perform and complete its obligations herein in a prompt
and continuous manner, so as to not delay the completion of the Project in accordance with the
schedules as described in Exhibit B. The contract shall remain effective for a period which may
reasonably be required for the completion of the Project, acceptance by an authorized
representative of the OWNER, exhaustion of authorized funds, or termination as provided in this
Agreement, whichever occurs first.
ARTICLE V
COMPENSATION
A. COMPENSATION TERMS:
1. “Subcontract Expense” is defined as expenses incurred by the CONSULTANT in
employment of others in outside firms for services related to this agreement.
2. “Direct Non-Labor Expense” is defined as that expense for any assignment
incurred by the CONSULTANT for supplies, transportation and equipment,
travel, communications, subsistence, and lodging away from home, and similar
incidental expenses in connection with that assignment.
B. BILLING AND PAYMENT: For and in consideration of the professional services to be
performed by the CONSULTANT herein, the OWNER agrees to pay, based on the cost
estimate detail at an hourly rate shown in Exhibit B which is attached hereto and made a
part of this Agreement as if written word for word herein, a total fee, including
reimbursement for direct non-labor expenses not to exceed $169,500.
Partial payments to the CONSULTANT will be made on the basis of detailed monthly
statements rendered to and approved by the OWNER through its City Manager or his
designee; however, under no circumstances shall any monthly statement for services
exceed the value of the work performed at the time a statement is rendered.
Nothing contained in this Article shall require the OWNER to pay for any work which is
unsatisfactory, as reasonably determined by the City Manager or his designee, or which is
not submitted in compliance with the terms of this Agreement. The OWNER shall not be
required to make any payments to the CONSULTANT when the CONSULTANT is in
default under this Agreement.
It is specifically understood and agreed that the CONSULTANT shall not be authorized
to undertake any work pursuant to this Agreement which would require additional
payments by the OWNER for any charge, expense, or reimbursement above the
maximum not to exceed fee as stated, without first having obtained written authorization
from the OWNER. The CONSULTANT shall not proceed to perform the services listed
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 4 of 14
in Article III “Additional Services,” without obtaining prior written authorization from
the OWNER.
C. ADDITIONAL SERVICES: For additional services authorized in writing by the
OWNER in Article III, the CONSULTANT shall be paid based on the Schedule of
Charges at an hourly rate shown in Exhibit B. Payments for additional services shall be
due and payable upon submission by the CONSULTANT and approval by the City staff,
and shall be in accordance with subsection B hereof. Statements shall not be submitted
more frequently than monthly.
D. PAYMENT: If the OWNER fails to make payments due the CONSULTANT for
services and expenses within thirty (30) days after receipt of the CONSULTANT’s
undisputed statement thereof, the amounts due the CONSULTANT will be paid interest
in accordance with the Texas Government Code 2251.025. Additionally, the
CONSULTANT may, after giving seven (7) days’ written notice to the OWNER,
suspend services under this Agreement until the CONSULTANT has been paid in full all
amounts due for services, expenses, and charges. Nothing herein shall require the
OWNER to pay the late charge if the OWNER reasonably determines that the work is
unsatisfactory, in accordance with this Article V, “Compensation,” there is a bona fide
dispute concerning the amount due, or the invoice was not mailed to the address or in the
form as described in this Agreement. The OWNER will notify CONSULTANT of any
disputes within twenty-one (21) days of receipt of the invoice.
E. Invoices shall be sent directly to the City of Denton Accounts Payable Department, 215
E McKinney St, Denton, TX, 76201-4299. A pro-forma invoice shall be sent to the
contract administrator. It is the intention of the City of Denton to make payment on
completed orders within thirty days after receipt of invoice or items; whichever is later,
unless unusual circumstances arise. Invoices must be fully documented as to labor,
materials, and equipment provided, if applicable, and must reference the City of
Denton Purchase Order Number in order to be processed. No payments shall be
made on invoices not listing a Purchase Order Number.
ARTICLE VI
OBSERVATION AND REVIEW OF THE WORK
The CONSULTANT will exercise reasonable care and due diligence in discovering and
promptly reporting to the OWNER any defects or deficiencies in the work of the
CONSULTANT or any subcontractors or subconsultants.
ARTICLE VII
OWNERSHIP OF DOCUMENTS
All documents prepared or furnished by the CONSULTANT (and CONSULTANT’s
subcontractors or subconsultants) pursuant to this Agreement are instruments of service, and
shall become the property of the OWNER upon the termination of this Agreement. The
CONSULTANT is entitled to retain copies of all such documents. The documents prepared and
furnished by the CONSULTANT are intended only to be applicable to this Project, and
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 5 of 14
OWNER’s use of these documents in other projects shall be at OWNER’s sole risk and expense.
In the event the OWNER uses any of the information or materials developed pursuant to this
Agreement in another project or for other purposes than specified herein, CONSULTANT is
released from any and all liability relating to their use in that project.
ARTICLE VIII
INDEMNITY AGREEMENT
THE CONSULTANT SHALL INDEMNIFY AND SAVE AND HOLD HARMLESS
THE OWNER AND ITS OFFICERS, OFFICIALS, AGENTS, AND EMPLOYEES FROM
AND AGAINST ANY AND ALL LIABILITY, CLAIMS, DEMANDS, DAMAGES,
LOSSES, AND EXPENSES, INCLUDING, BUT NOT LIMITED TO COURT COSTS
AND REASONABLE ATTORNEY FEES ASSERTED AGAINST OR INCURRED BY
THE OWNER, AND INCLUDING, WITHOUT LIMITATION, DAMAGES FOR
BODILY AND PERSONAL INJURY, DEATH AND PROPERTY DAMAGE,
RESULTING FROM THE NEGLIGENT ACTS OR OMISSIONS OF THE
CONSULTANT OR ITS OFFICERS, SHAREHOLDERS, AGENTS, OR EMPLOYEES
INCIDENTAL TO, RELATED TO, AND IN THE EXECUTION, OPERATION, OR
PERFORMANCE OF THIS AGREEMENT.
Nothing in this Agreement shall be construed to create a liability to any person who is not
a party to this Agreement, and nothing herein shall waive any of the parties’ defenses, both at
law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this
Agreement, including the defense of governmental immunity, which defenses are hereby
expressly reserved.
ARTICLE IX
INSURANCE
During the performance of the services under this Agreement, CONSULTANT shall
maintain insurance in compliance with the requirements of Exhibit C which is attached hereto
and made a part of this Agreement as if written word for word herein.
ARTICLE X
ALTERNATIVE DISPUTE RESOLUTION
The parties may agree to settle any disputes under this Agreement by submitting the
dispute to mediation with each party bearing its own costs of mediation. No mediation arising
out of or relating to this Agreement, involving one party’s disagreement may include the other
party to the disagreement without the other’s approval. Mediation will not be a condition
precedent to suit.
ARTICLE XI
TERMINATION OF AGREEMENT
A. Notwithstanding any other provision of this Agreement, either party may terminate by
giving thirty (30) days’ advance written notice to the other party.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 6 of 14
B. This Agreement may be terminated in whole or in part in the event of either party
substantially failing to fulfill its obligations under this Agreement. No such termination
will be affected unless the other party is given (1) written notice (delivered by certified
mail, return receipt requested) of intent to terminate and setting forth the reasons
specifying the non-performance, and not less than fifteen (15) calendar days to cure the
failure; and (2) an opportunity for consultation with the terminating party prior to
termination.
C. If the Agreement is terminated prior to completion of the services to be provided
hereunder, CONSULTANT shall immediately cease all services and shall render a final
bill for services to the OWNER within thirty (30) days after the date of termination. The
OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily
performed and for reimbursable expenses to termination incurred prior to the date of
termination, in accordance with Article V “Compensation.” Should the OWNER
subsequently contract with a new consultant for the continuation of services on the
Project, CONSULTANT shall cooperate in providing information. The CONSULTANT
shall turn over all documents prepared or furnished by CONSULTANT pursuant to this
Agreement to the OWNER on or before the date of termination, but may maintain copies
of such documents for its use.
ARTICLE XII
RESPONSIBILITY FOR CLAIMS AND LIABILITIES
Approval by the OWNER shall not constitute, nor be deemed a release of the
responsibility and liability of the CONSULTANT, its employees, associates, agents,
subcontractors, and subconsultants for the accuracy and competency of their designs or other
work; nor shall such approval be deemed to be an assumption of such responsibility by the
OWNER for any defect in the design or other work prepared by the CONSULTANT, its
employees, subcontractors, agents, and consultants.
ARTICLE XIII
NOTICES
All notices, communications, and reports required or permitted under this Agreement
shall be personally delivered or mailed to the respective parties by depositing same in the United
States mail to the address shown below, certified mail, return receipt requested, unless otherwise
specified herein. Mailed notices shall be deemed communicated as of three (3) days’ mailing:
To CONSULTANT: To OWNER:
NewGen Strategies and Solutions, LLC City of Denton
Scott Burnham Purchasing Manager –File 7628
225 Union Blvd., Suite 305 901B Texas Street
Lakewood, CO 80228 Denton, Texas 76201
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 7 of 14
All notices shall be deemed effective upon receipt by the party to whom such notice is
given, or within three (3) days’ mailing.
ARTICLE XIV
ENTIRE AGREEMENT
This Agreement and related exhibits constitute the complete and final expression of this
Agreement of the parties, and is intended as a complete and exclusive statement of the terms of
their agreements, and supersedes all prior contemporaneous offers, promises, representations,
negotiations, discussions, communications, and agreements which may have been made in
connection with the subject matter hereof.
ARTICLE XV
SEVERABILITY
If any provision of this Agreement is found or deemed by a court of competent
jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of
this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event,
the parties shall reform this Agreement to replace such stricken provision with a valid and
enforceable provision which comes as close as possible to expressing the intention of the stricken
provision.
ARTICLE XVI
COMPLIANCE WITH LAWS
The CONSULTANT shall comply with all federal, state, and local laws, rules,
regulations, and ordinances applicable to the work covered hereunder as those laws may now
read or hereinafter be amended.
ARTICLE XVII
DISCRIMINATION PROHIBITED
In performing the services required hereunder, the CONSULTANT shall not discriminate
against any person on the basis of race, color, religion, sex, sexual orientation, national origin or
ancestry, age, or physical handicap.
ARTICLE XVIII
PERSONNEL
A. The CONSULTANT represents that it has or will secure, at its own expense, all
personnel required to perform all the services required under this Agreement. Such
personnel shall not be employees or officers of, or have any contractual relations with the
OWNER. CONSULTANT shall inform the OWNER of any conflict of interest or
potential conflict of interest that may arise during the term of this Agreement.
B. All services required hereunder will be performed by the CONSULTANT or under its
supervision. All personnel engaged in work shall be qualified, and shall be authorized
and permitted under state and local laws to perform such services.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 8 of 14
ARTICLE XIX
ASSIGNABILITY
The CONSULTANT acknowledges that this Agreement is based on the demonstrated
competence and specific qualifications of the CONSULTANT and is therefore personal as to the
CONSULTANT. Therefore, the CONSULTANT shall not assign any interest in this Agreement,
and shall not transfer any interest in this Agreement (whether by assignment, novation, or
otherwise) without the prior written consent of the OWNER.
ARTICLE XX
MODIFICATION
No waiver or modification of this Agreement or of any covenant, condition, or limitation
herein contained shall be valid unless in writing and duly executed by the party to be charged
therewith, and no evidence of any waiver or modification shall be offered or received in evidence
in any proceeding arising between the parties hereto out of or affecting this Agreement, or the
rights or obligations of the parties hereunder, and unless such waiver or modification is in
writing and duly executed; and the parties further agree that the provisions of this section will not
be waived unless as set forth herein.
ARTICLE XXI
MISCELLANEOUS
A. The following exhibits are attached to and made a part of this Agreement:
Exhibit A – RFQ 7628 – Electric Cost of Study Service for the City of Denton (on file at
the purchasing office)
Exhibit B – Consultant’s Scope of Services Offer, Project Schedule and Rate Sheet
Exhibit C – Consultant’s Insurance Requirements
Exhibit D – Conflict of Interest Questionnaire
What is called for by one exhibit shall be as binding as if called for by all. In the event of
an inconsistency or conflict in this Agreement and any of the provisions of the exhibits,
the inconsistency or conflict shall be resolved by giving precedence first to this
Agreement then to the exhibits in the order in which they are listed above.
B. This Agreement shall be governed by, construed, and enforced in accordance with, and
subject to, the laws of the State of Texas or federal law, where applicable, without regard
to the conflict of law principles of any jurisdiction. In the event there shall be any dispute
arising out of the terms and conditions of, or in connection with, this Agreement, the
party seeking relief shall submit such dispute to the District Courts of Denton County or
if federal diversity or subject matter jurisdiction exists, to the United States District Court
for the Eastern District of Texas-Sherman Division.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 9 of 14
C. For the purpose of this Agreement, the key persons who will perform most of the work
hereunder shall be __________________. However, nothing herein shall limit
CONSULTANT from using other equally qualified and competent members of its firm to
perform the services required herein.
D. CONSULTANT shall commence, carry on, and complete any and all projects with all
applicable dispatch, in a sound, economical, and efficient manner and in accordance with
the provisions hereof. In accomplishing the projects, CONSULTANT shall take such
steps as are appropriate to ensure that the work involved is properly coordinated with
related work being carried on by the OWNER.
E. The OWNER shall assist the CONSULTANT by placing at the CONSULTANT’s
disposal all available information pertinent to the Project, including previous reports, any
other data relative to the Project, and arranging for the access thereto, and make all
provisions for the CONSULTANT to enter in or upon public and private property as
required for the CONSULTANT to perform services under this Agreement.
F. The captions of this Agreement are for informational purposes only, and shall not in any
way affect the substantive terms or conditions of this Agreement.
G. The parties agree to transact business electronically. Any statutory requirements that
certain terms be in writing will be satisfied using electronic documents and signing.
Electronic signing of this document will be deemed an original for all legal purposes.
ARTICLE XXII
INDEPENDENT CONTRACTOR
CONSULTANT shall provide services to OWNER as an independent contractor, not as
an employee of the OWNER. CONSULTANT shall not have or claim any right arising from
employee status.
ARTICLE XXIII
RIGHT TO AUDIT
The OWNER shall have the right to audit and make copies of the books, records and
computations pertaining to this agreement. The CONTRACTOR shall retain such books,
records, documents and other evidence pertaining to this agreement during the contract period
and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in
which case records shall be kept until all audit tasks are completed and resolved. These books,
records, documents and other evidence shall be available, within 10 business days of written
request. Further, the CONTRACTOR shall also require all Subcontractors, material suppliers,
and other payees to retain all books, records, documents and other evidence pertaining to this
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Jill Schuepbach
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 10 of 14
agreement, and to allow the OWNER similar access to those documents. All books and records
will be made available within a 50 mile radius of the City of Denton. The cost of the audit will
be borne by the OWNER unless the audit reveals an overpayment of 1% or greater. If an
overpayment of 1% or greater occurs, the reasonable cost of the audit, including any travel costs,
must be borne by the CONTRACTOR which must be payable within five business days of
receipt of an invoice.
Failure to comply with the provisions of this section shall be a material breach of this contract
and shall constitute, in the OWNER’S sole discretion, grounds for termination thereof. Each of
the terms "books", "records", "documents" and "other evidence", as used above, shall be
construed to include drafts and electronic files, even if such drafts or electronic files are
subsequently used to generate or prepare a final printed document.
ARTICLE XXIV
Prohibition On Contracts With Companies Boycotting Israel
Consultant acknowledges that in accordance with Chapter 2270 of the Texas Government Code,
City is prohibited from entering into a contract with a company for goods or services unless the
contract contains a 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 terms “boycott Israel” and
“company” shall have the meanings ascribed to those terms in Section 808.001 of the Texas
Government Code. By signing this agreement, Consultant certifies that Consultant’s signature
provides written verification to the City that Consultant: (1) does not boycott Israel; and (2)
will not boycott Israel during the term of the agreement. Failure to meet or maintain the
requirements under this provision will be considered a material breach.
ARTICLE XXV
Prohibition On Contracts With Companies Doing Business with Iran, Sudan, or a
Foreign Terrorist Organization
Section 2252 of the Texas Government Code restricts CITY from contracting with companies
that do business with Iran, Sudan, or a foreign terrorist organization. By signing this agreement,
Consultant certifies that Consultant’s signature provides written verification to the City that
Consultant, pursuant to Chapter 2252, is not ineligible to enter into this agreement and will
not become ineligible to receive payments under this agreement by doing business with Iran,
Sudan, or a foreign terrorist organization. Failure to meet or maintain the requirements under
this provision will be considered a material breach.
ARTICLE XXVI
CERTIFICATE OF INTERESTED PARTIES ELECTRONIC FILING
In 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the
Government Code. The law states that the City may not enter into this contract unless the
Consultant submits a disclosure of interested parties (Form 1295) to the City at the time the
Consultant submits the signed contract. The Texas Ethics Commission has adopted rules
requiring the business entity to file Form 1295 electronically with the Commission.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 11 of 14
Consultant will be required to furnish a Certificate of Interest Parties before the contract is
awarded, in accordance with Government Code 2252.908.
The consultant shall:
1. Log onto the State Ethics Commission Website at :
https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm
2. Register utilizing the tutorial provided by the State
3. Print a copy of the completed Form 1295
4. Enter the Certificate Number on page 2 of this contract.
5. Complete and sign the Form 1295
6. Email the form to purchasing@cityofdenton.com with the contract number in the subject
line. (EX: Contract 1234 – Form 1295)
The OWNER must acknowledge the receipt of the filed Form 1295 not later than the 30th day
after Council award. Once a Form 1295 is acknowledged, it will be posted to the Texas Ethics
Commission’s website within seven business days.
ARTICLE XXVII
PROHIBITION AGAINST PERSONAL INTEREST IN CONTRACTS
No officer, employee, independent consultant, or elected official of the City who is involved in
the development, evaluation, or decision-making process of the performance of any solicitation
shall have a financial interest, direct or indirect, in the Contract resulting from that solicitation as
defined in the City’s Ethic Ordinance 18-757 and in the City Charter chapter 2 article XI(Ethics).
Any willful violation of this section shall constitute impropriety in office, and any officer or
employee guilty thereof shall be subject to disciplinary action up to and including dismissal. Any
violation of this provision, with the knowledge, expressed or implied, of the Contractor shall
render the Contract voidable by the City. The Consultant shall complete and submit the City’s
Conflict of Interest Questionnaire.
IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be
executed by its duly authorized City Manager, and CONSULTANT has executed this Agreement
through its duly authorized undersigned officer on this date______________________.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Cheyenne Defee
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 12 of 14
CONSULTANT
NewGen Strategies and Solutions, LLC
BY:______________________________
AUTHORIZED SIGNATURE
Printed Name:_____________________
Title:____________________________
__________________________________
PHONE NUMBER
_________________________________
EMAIL ADDRESS
CITY OF DENTON, TEXAS
BY: _____________________________
Title: _____________________________
ATTEST:
ROSA RIOS, CITY SECRETARY
BY: _______________________________
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: _______________________________
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Director
Scott Burnham
sburnham@newgenstrategies.net
7202591762
Interim City Manager
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 13 of 14
__________________________________
TEXAS ETHICS COMMISSION
1295 CERTIFICATE NUMBER
THIS AGREEMENT HAS BEEN
BOTH REVIEWED AND APPROVED
as to financial and operational obligations and business terms.
_______________ ________________
SIGNATURE PRINTED NAME
__________________________________
TITLE
__________________________________
DEPARTMENT
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
TO COME
Electric
Exec Mgr of Utilities
Antonio Puente
City of Denton, Texas Contract 7628
Standard Agreement for Engineering Related Design Services
Revised Date: 9/11/18
Page 14 of 14
Exhibit A
RFQ 7628 Electric Cost of Study Service
(on file in the purchasing office)
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 1
COMPANY HISTORY AND BACKGROUND
NewGen Strategies and Solutions, LLC (NewGen) is a management and economic consulting firm
specializing in serving the utility industry and market. Established in August 2012, NewGen primarily
serves public sector utilities and provides nationally recognized expertise in utility cost of service (COS)
and rate design studies, load forecasting, financial feasibility studies, municipalization efforts,
depreciation and appraisal studies, litigation support for state and federal regulatory proceedings, utility
financial planning, and stakeholder engagement for electric, water, wastewater, solid waste, and natural
gas utilities.
NewGen was created by consultants who are dedicated to our clients’ missions and recognized as experts
in our respective fields of service. “Thoughtful Decision Making for Uncertain Times” succinctly describes
our capability to provide our clients with solutions and recommendations tempered with our keen insight
into the growing role of stakeholders, resource availability (including renewables), environmental
concerns, cost of providing utility services, and economic conditions. This ensures an integrated approach
to delivering our products and services.
NewGen employs 48 professional and administrative staff, with 11 ownership members and a Board
of Directors. Our current staff has the capability to work on simultaneous assignments, and we have
the capacity to add staff and/or expand support from a network of teaming partners if needed.
NewGen has 10 offices located nationwide.
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Exhibit B
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
2 Thoughtful Decision Making for Uncertain Times
PROJECT APPROACH AND PROPOSED METHODOLOGY
Denton Municipal Electric (DME), like many public utilities across the country, is facing a number of
complex market, policy, resource, financial, stakeholder, and environmental issues that will likely drive
increasing costs and require additional flexibility and agility by the utility and its rates. In addition to the
amplification of broader electric utility market trends such as distributed generation, conservation,
renewable policies, pressure on rates, and increasing customer engagement, DME must plan for notable
growth in the electric system.
Any effort to navigate or address these complex issues must be integrated with DME’s broader ratemaking
policy and strategy. NewGen is well-equipped to provide the services and deliverables DME is requesting
for this assignment. We previously worked closely with the utility to develop an existing financial planning
model and an Advanced Metering Infrastructure (AMI)-based Time of Use (TOU) Rate Design Model, both
of which will be critical in the success of this Study. Our approach for the Study is to expand our
collaborative working relationship with DME in updating and expanding the Financial Planning model to
include the known and measurable changes that are expected to occur in the near future. We will develop
a comprehensive and fully-allocated COS model that will apply industry standard methodologies and
DME’s unique characteristics to assign costs to the utility’s rate classes. In addition, NewGen proposes to
update the AMI Rate Design Model used for TOU rate design to quantify the impacts of recommended
rate changes on each of DME’s customers. NewGen’s vision is to integrate these three primary planning
models for DME to optimize its rate setting processes. The following graphic illustrates our vision for the
Study:
Financial Planning Model
The financial planning model forecasts revenues and expenses to evaluate potential average class
revenues from rates, financing options, changes in system loads, capital improvements, or other items as
desired by DME. The model includes a “dashboard” that allows for dynamic scenario analyses, which
DocuSign Envelope ID: 2ACE1E19-BD60-49BD-BC9C-9B20199BEDC9DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 3
provides DME with flexibility in determining the appropriate mix of rate changes, capital projects, debt
issuances, or other variables to meet budgetary or capital constraints and to inform defensible decision-
making. The model will be updated and expanded to address DME’s policy issues and future growth plans
and will provide the total system Revenue Requirement for use in the COS model.
Cost of Service Model
The COS model will functionalize, unbundle, classify, and allocate the total system Revenue Requirement
for each DME customer class. The COS model provides insight on the underlying nature of DME’s costs
and will identify those that are fixed and those that are variable. The COS model also provides valuable
information to support a variety of charges that recover fixed costs, such as customer charges, minimum
charges, delivery charges, and demand charges. As part of the COS process, we will review existing rate
classes and make recommendations for adjustments, as appropriate. The results from the COS will be
incorporated into the Rate Design model and provide guidance for setting cost-based rates.
Rate Design Model
The Rate Design model will compare each of the existing customer class’s rate structures, including
demand, customer, energy, Energy Cost Adjustment (ECA), and related components, with the COS results.
This initial review of the rate structures will identify any intra-class subsidies and misalignments in the
recovery of fixed and variable costs. NewGen will collaborate with DME to develop recommendations for
structural rate adjustments or modifications to achieve its ratemaking policy and financial goals. All
recommended structures will rely upon COS results to provide a cost-based justification and defensibility
for the changes.
Included in the Rate Design Model will be a Customer Impact Model, which is an interactive model that
contains every customer served by DME. This model will be designed to evaluate the impacts to DME
customers from rate and rate structure changes as a result of the COS process and rate recommendations
developed for this Study. The advantage of our Customer Impact Rate Design Model is that it provides
the entire range of impacts to all customers from changes in rates and rate structures, rather than solely
focusing on representative customers. By developing a histogram of the rate impacts for each customer
within a rate class, DME can determine a course of action with a complete understanding of those impacts,
either as a percentage of current bills or a monthly dollar change. Additionally, by identifying those
accounts with significant changes, DME can proactively reach out to specific customers to determine if a
utility-led program may be appropriate for their premise.
As part of this Study, NewGen proposes to update the AMI Rate Design Model previously designed. The
model includes dynamic and instant analyses of TOU rate options, projections of load profile, and demand
reduction opportunities to integrate with DME’s resource planning efforts.
Scope of Services
Phase 1: Project Management
Open lines of communication and a clear understanding of project goals and objectives are critical to the
overall success of the project. NewGen prides itself on projects done well, on time, and on budget. We
have a strong track record of satisfied long-term clients. Given our objective to completely satisfy DME
during this engagement, tasks within this phase are designed to facilitate achievement of this objective.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
4 Thoughtful Decision Making for Uncertain Times
Task 1.1: Data Request and Kick-Off Meeting
Upon receiving the notice to proceed, NewGen will deliver a Data Request to gather the data and
information required to perform the Study. As data is submitted, NewGen will review the DME data and
identify any potential gaps in information or additional data required to conduct our analyses.
After reviewing the data, NewGen will schedule a Kick-Off Meeting with DME. Depending upon the
preferences of the DME Team, and in consideration of any coronavirus disease (COVID-19) restrictions,
NewGen can be available to host the Kick-Off Meeting remotely via webinar or to attend the meeting in
person in Denton. The purpose of the meeting is to discuss all five phases of the Study. During the
meeting, NewGen will facilitate a discussion of DME’s broader utility strategy, financial goals, and
ratemaking policies to provide a framework for the various tasks to be completed during the Study. In
particular, the Study should act to align with and communicate DME’s broader strategy through the
delivery of proper pricing signals to customers.
This meeting will also include a discussion of schedule and deliverables, including potential progress
meetings with the DME Team, Citizen Groups, City Council, and Public Utilities Board (PUB), where
applicable.
Task 1.2: Communication and Progress Reports
During the Kick-Off Meeting, we will establish a communication plan whereby members of the combined
DME and NewGen teams agree to the frequency and type of communication that will be adhered to
throughout the Study. Typically, we schedule a periodic conference call where members of the combined
teams can discuss project issues as they arise. We will also provide DME with a monthly written Project
Guide by phase that will give DME a project progress report. The guide will identify the various
responsibilities of NewGen and DME team members, the status of outstanding data requests and work
product deliverables, and the expected near-term schedule. The Monthly Project Guide will be developed
concurrent with the monthly invoices and will provide a status of labor expenses incurred to date by
month and remaining budget.
Phase 1 Deliverables:
Data Request
A half-day Kick-Off Meeting via webinar or in person attended by up to two members of the Project
Team
Establish communication plan regarding project progress as mutually agreed upon by the
combined DME and NewGen teams
Monthly Project Guide to be submitted to DME along with invoicing
Phase 2: Financial Forecast and Revenue Requirement
Task 2.1 Financial Planning Model Update and Expansion
NewGen will work with DME to update and expand the existing Financial Planning model, which forecasts
revenues by customer class and expenses for five years to evaluate potential rate, debt, changes in loads,
capital impacts, and/or other items as requested by DME. The model includes a “dashboard” to allow for
dynamic scenario analyses. This scenario analysis tool provides flexibility to determine the optimal mix of
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 5
various financing approaches (retained earnings or rate revenue compared to new debt) and investment
(capital projects, rebates for policy objectives, etc.). This will allow DME management and staff to make
informed and defensible decisions regarding future courses of action. The results of the various scenarios
will be evaluated utilizing key performance indicators (KPIs) which will be developed in coordination with
DME management and staff during the financial modeling process. The customized tools allow for
dynamic and complete analysis of the various inputs/variables and produce easy-to-understand tables
and graphs that aid DME in communicating this information to various stakeholders engaged in the
project. We will host a webinar to review and make final revisions to the financial planning model.
The model NewGen built for DME includes embedded instructions and guidance that can be accessed
within the model’s customized menus. The model also contains custom ribbons in Microsoft Excel to
provide functionality and instructions in addition to pop-up windows with additional capability to “drill
down” into specific areas for instructions. The model includes integrated error and data validity checking.
This error checking features the ability for update notifications, user update logs, and version
control/dates.
Task 2.2: Development of Revenue Requirement
The Financial Planning Model will be used to develop the Test Year Revenue Requirement (Revenue
Requirement) used in the COS. Test Year means that actual historical costs are adjusted using current
information so that the “shelf-life” of adopted rates are sufficient over the Study period. The Revenue
Requirement to be included in the COS will include all costs the utility must collect through rates for the
fiscal years (FY) 2022 through FY 2026 period. It will also include any known and measurable adjustments
necessary to account for material or significant changes to the DME system, such as a new load associated
with large-use customers, anticipated opportunities for wholesale sales, and/or projected changes in
generation resources and power market fluctuations.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
6 Thoughtful Decision Making for Uncertain Times
Utility Basis versus Cash Basis
The current financial forecast was developed on a Cash Basis, which is the traditional method by which
municipal electric utilities design rates. Investor-owned utilities utilize the Utility Basis given their cost
structure and for-profit regulated business model. DME requested a Revenue Requirement developed on
a Utility Basis. While we will work with DME to provide what is desired, NewGen recommends utilizing a
Cash Basis and methodology consistent with the establishment of municipal utility rates, which would
include, at a minimum, operation and maintenance (O&M) expenses, debt service, cash funded capital,
transfers to the City, and reserve requirements related to debt service coverage covenants or other utility
financial policies.
A Utility Basis Revenue Requirement may be included at a summary level (i.e., a modified Cash Basis
summary to exclude debt service and capital/reserves, and include depreciation, interest expense, and
return on equity) for comparison purposes at DME’s request. NewGen will utilize information provided
by DME with regard to the rate base (gross and net plant) and annual depreciation as recorded by the
City. Furthermore, we will work with DME to develop an appropriate Return on Equity (ROE) to be utilized
for the basis of return, given the risks for municipal utilities, as well as a comparison to comparable private
utility companies. This will be combined with DME’s cost of debt to provide a Return on Investment (ROI)
applicable to a Utility Basis approach for the municipal utility. The results between the Cash Basis and the
Utility Basis will be compared and discussed with DME management, if desired.
Task 2.2 Financial Planning Model Training
NewGen will provide a four-hour training session via webinar to DME staff to ensure they can update the
model in the future.
Phase 2 Deliverables:
Updated and expanded Financial Planning Model
Webinar to discuss results including rates, debt, and key performance indicators
Revenue Requirement
Provide training for DME management and staff to update the Financial Planning Model
Phase 3: Cost of Service Study
As previously mentioned, NewGen has significant experience in
developing user-friendly COS and rate design models for our clients. Our
COS models determine embedded costs by class and have been well
vetted in numerous public and regulatory settings. Our COS model is
unbundled and allows DME the flexibility to allocate costs to functions,
sub-functions, and projects. Additionally, our model is designed to quickly
run scenarios to better understand the impact of different cost allocation
philosophies on rates. During the Kick-Off Meeting, we will discuss the
level of unbundling and COS scenarios to be developed during the Study.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 7
Task 3.1: Cost of Service
There are three key steps to completing the COS: 1) unbundle or functionalize the Revenue Requirement
into utility functions (i.e., production, transmission, distribution, and customer); 2) classify costs (i.e.,
energy, demand, customer); and 3) allocate the costs to the customer classes. These steps include the
development of allocation factors to support the assignment of shared costs to different functions or
classifications, and the eventual customer class allocation factors to allocate the final costs to serve each
customer class.
The model will use basic Microsoft Excel tools such as reference tables, pull-down menus, and lists for
inputs and adjusting selections such as allocation methodologies or specific allocators. The COS model is
comprised of three interconnected components: A, B, and C, which are graphically depicted and described
in further detail below.
Cost of Service Model
Component A – Functional Unbundling
Functional unbundling provides detailed
descriptions of the utility’s Revenue
Requirement by core utility function. For
each item, if adjusted, the amount of the
adjustment is identified with an associated
work paper. Once the detailed Revenue
Requirement has been established, the
amounts are assigned to the production,
transmission, distribution, and customer
functions. Assignments are made either
through direct assignments or other
allocation methodologies. The results of
the Component A analysis for each function
of the Revenue Requirement are expressed
on a functional basis.
Select function/allocation factors for each account
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
8 Thoughtful Decision Making for Uncertain Times
Component B – Sub-functional Unbundling
Sub-functionalizing the production, transmission, distribution, and customer functions developed in
Component A provides additional detail and accuracy to DME’s costs. For example, distribution function
costs may be sub-functionalized into substations, poles and conduit, transformers, meters, services, and
streetlights. Additionally, costs are classified as demand-related, energy-related, customer-related, or a
direct assignment. Similar to functionalization, sub-functionalization is accomplished either through
direct assignments or other allocation methodologies.
Specific allocation factors are found at the bottom of each sub-function worksheet. The Component B
analysis results in DME’s Revenue Requirement expressed on a sub-functional basis for each cost
classification. See the following graphic for an illustration of the COS sub-functionalization and
classification of costs.
Component C – Allocated Cost of Service
Using the information developed in Component B, the sub-functionalized and classified Revenue
Requirement is allocated to each of the proposed rate classes using various customer class allocation
methodologies. These allocation factors are developed in alignment with the cost classification. An
illustration of the COS model allocations to customer classes is included below.
Select classification or
allocation for each
account within the
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 9
The final COS results will be summarized on an aggregate basis for each customer class and compared to
projected Test Year revenues to identify rate adjustments needed to meet the COS. In addition, the COS
will summarize more detailed unbundled COS categories, such as the breakdown of distribution
demand-related costs, distribution customer-related costs, and power supply demand/variable per
customer class and by unit costs.
Evaluate Existing Rate Classes
An important step in the COS process is the review of existing rate classes. The industry standard is to
establish rate classes that represent different types of customers that have similar usage characteristics
and service requirements. Examples of these characteristics include customer delivery voltage, size as
measured by demand (kW), load factor, metering technology, load profiles, etc. NewGen will review
DME’s current and historical load data and profiles for each customer class to identify any class
consolidation or modification opportunities. If or where modifications are recommended and agreed to
by DME, the COS will be updated to reflect the changes.
AMI hourly data for each of the customer classes will be instrumental in the evaluation of the existing
customer classes and potential changes in addition to the development of the key underlying cost
allocators used in the COS. Please see Task 4.4 regarding NewGen’s proposed updates to DME’s existing
AMI rate design model.
Test Year Billing Determinants
As part of the COS process, the Test Year billing determinants will be reviewed and adjusted to represent
a “typical” or average year. If needed, NewGen can weather normalize the billing data. NewGen has
extensive experience both deriving normalized weather (i.e., determining the typical/average
temperature and precipitation for a given hour or day) and determining normalized load using derived
normalized weather. We have implemented a wide range of algorithms to determine normalized load,
from classical linear regressions in Microsoft Excel to Machine Learning (ML) algorithms like Decision Tree
Forests and Neural Networks. The algorithm of choice for DME depends on the granularity of available
data, the specific use case, and any regulatory guidelines.
Select allocation
factors and develop
COS for each class
Classified costs are
summarized and allocated to customer classes
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
10 Thoughtful Decision Making for Uncertain Times
Fixed and Variable Costs
The unbundled COS and related work papers will also provide all the data required to evaluate and
compare fixed and variable costs of the utility. This comparison will provide valuable information to
support a variety of charges that recover fixed costs, such as customer charges, minimum charges, delivery
charges, and demand charges. Both fixed and variable cost information will be important in the
development of rates and charges on the system that address the economic value of distributed
generation including traditional and renewable options.
Work Papers
Work papers for supporting adjustments and allocations used in Components A, B, and C are included in
the model for reference. These work papers include detailed supporting calculations, such as customer
class contributions to system load and peak demands, minimum system calculations for customer and
demand classifications of the distribution costs, asset-related data such as transformer inventory or miles
of lines, and/or purchased power cost breakdown.
NewGen will rely on available DME metering data in the development of summary-level statistics for each
customer class (e.g., total kilowatt-hour (kWh) sales, sum of maximum demands, monthly non-coincident
peak (NCP), and monthly coincident peak (CP)). If a portion of this data is not available, NewGen will rely
upon surrogate data available in our files.
A draft COS will be provided to and reviewed with DME for initial feedback and approval prior to
completion of the COS. NewGen will host a webinar with the DME Team to review the draft results of the
COS model. Feedback from the meeting and any modifications requested from DME will be integrated
into the final COS results.
Upon completion of this phase, we will summarize our methodology and results in the draft and final
reports as described in Phase 5.
Task 3.2 Cost of Service Model Training
NewGen will provide a four-hour training session via webinar to DME staff to ensure they can update the
model in the future.
Phase 3 Deliverables:
COS model with a breakdown of fixed and variable costs by class
Webinar to discuss COS results
Provide training for DME Staff to update the COS Model
Phase 4: Rate Design Study
Successful rate design represents a blend of COS results and DME policy. In the development of rates,
important community values will be considered and appropriately reflected in rate proposals. These
values will be discussed during the Phase 1 Kick-Off Meeting and will be documented in the final report.
Among other things, values may include the fair recovery of costs from different types of customers, the
gradual implementation of rate changes to minimize customer bill impacts associated with new rates, and
the competitiveness of rates compared to neighboring utilities.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 11
Task 4.1: Review DME Rates and Riders
In consideration of DME’s retail rate objectives as discussed and established in the Kick-Off Meeting, we
will compare each of the existing customer class’s rate structures by rate component as appropriate
(demand, customer, energy, Energy Cost Adjustment (ECA)) with the COS results. The purpose of this
initial review is to identify any intra-class subsidies that may exist and to quantify the differences between
the fixed and variable costs and their cost recovery mechanisms. This review will be conducted in
collaboration with the DME Team to develop recommendations for adjustments to the rate structures or
modifications to support DME’s ratemaking policy and financial goals. Any applicable rate riders will be
analyzed to ensure they are sustainable and consistent with the underlying costs.
After NewGen’s review and DME’s input, recommendations will be developed for the proposed rate
structure changes, as necessary. One of DME’s stated goals for the Study is to promote conservation and
reduce peak demand. As part of this Study, we will explore removing or reducing the existing declining
energy block rates contained in DME’s rates to encourage conservation. To ensure revenue stability, we
will also review the existing customer and demand charges compared to the costs to serve those
customers.
Task 4.2: Rate Design and Revenue Sufficiency
This task includes designing base rates for each customer class and
confirming their ability to fully recover the Revenue Requirement.
Furthermore, new rate structures or policies identified through
discussions with the DME Team will also be integrated into the Rate
Design Model.
After an agreement is reached on the recommended rates, the revenue
adequacy of the new rates will be proven by calculating the annual rate
revenue generated for each customer class and comparing it to the class
and total system COS. Average bills and average customer rate impacts
for each class will be calculated to compare existing, COS, and
recommended new rates.
This initial rate recommendation will consider gradualism in changing the
structure and rate increases, if needed or desired. For example, if the COS identifies customer classes
that require a rate increase of 5% or more in a year, the changes or increases could be phased in over
multiple years if this approach is consistent with DME’s ratemaking policy. The results of the initial rate
design will be presented and discussed during a meeting with the DME Team via a webinar. During this
meeting we will conduct an in-depth evaluation of different rate options and the corresponding impact
on customers. Based on feedback from the rate review, we will revise or provide an optional or alternative
rate design scenario, such as a phase-in of rate changes or adjustments in customer/demand/energy rate
components.
All elements of the Rate Design Model are user friendly and easily adjusted to evaluate alternative rate
implementation scenarios and metrics for success such as revenue adequacy, gradualism (e.g., maximum
and minimum rate changes), fixed cost recovery changes over time, cost shifting, and alignment with COS
results. An illustration of the rate model dashboard is shown below.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
12 Thoughtful Decision Making for Uncertain Times
Task 4.3: Customer Impacts
We will use DME’s monthly customer billing data by class to evaluate bill impacts on customers associated
with the proposed rates. To the extent that data is available, we will compare proposed and current rates
for each customer in the class. With this information, we can accurately present dollar and percentage
impacts for the class. This information allows DME to identify specific customer accounts that may be
adversely impacted by proposed rates before the rates have been implemented.
Task 4.4 AMI Rate Design Model Update
NewGen proposes to update the AMI Rate Design Model that previously designed for DME. The model
will provide for a more robust AMI-based rate design and can be used to integrate and inform resource
planning. With the penetration of AMI systems increasing, utilities are further evaluating TOU (and other)
rate options and structures to leverage this investment and improve system efficiency, manage system
load profiles, offer customers choices, and reduce costs. The current and potential proliferation of EV and
distributed generation (e.g., rooftop solar) further emphasize the need to view ratemaking as a strategic
tool by integrating it with resource planning.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 13
The AMI Rate Design Model will allow for dynamic and instantaneous analysis of all elements of TOU rates
including seasons, on/off peak periods, and pricing differentials. This unique model allows decision
makers to immediately evaluate and compare TOU structural options such as shifting rates from demand
to energy, or larger price differentials to deliver desired results. This functionality is also available to
better inform the design of EV rates or evaluate the impacts of broader distributed generation
penetration. An illustration of NewGen’s AMI-based hourly rate model is shown below.
Some of key components of the dashboard include time differentiated rate structure selections (i.e., TOU
periods and pricing), annual and customer monthly existing load profiles, customer and system load
profile changes resulting from the rate selections, customer class monthly billing impacts, and the load
duration curve changes. As seen in the following figures, the dashboard allows the user to select the
months to displace customer class monthly load profiles. This allows the user to identify the peak and
off-peak hourly periods and visually see when and to what extent each customer class contributes to the
system load peak. These graphics and the ability to select options (e.g., Jun–Aug vs. Jun–Sept summer
months) support the development of optimal TOU rates.
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CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
14 Thoughtful Decision Making for Uncertain Times
Based on the customer class selected, the
hourly and monthly load profiles for the
customers are shown to inform the design of
the TOU periods or differentials. Similar
profiles could be included for distributed
generation or EV customers to better
incentivize charging periods or TOU periods for
current residential/net metering customers
and net metering successor tariffs.
To optimally develop and understand the
impacts of a time differentiated rate, the user
must have flexibility to evaluate multiple on
and off-peak time periods (e.g., 12pm to 7pm
peak), seasonality (e.g., summer vs.
non-summer), and on- to off-peak rate
differentials. The following graphic illustrates
the ability to select (yellow shaded months and
hours) any combination of months and hours
during the day to include in the TOU rate
structure. In addition, the user can input
multiple rate differentials between on- and
off-peak periods to see the related revenue
impacts to ensure revenue neutrality of any
rate options selected.
System Max Demand System Load
1 2 3 4 5 6
7 8 9 10 11 12
0 2 4 6 8 10 12 14 16 18 20 22
Current System Average Day
Load Profile by Month
6
7
8
0
1,000
2,000
3,000
4,000
5,000
6,000
1 2 3 4 5 6 7 8 9 10 11 12
Comm Pri Sec Res
Current System Max Demand (kW)
-0.15
Energy Efficiency:25.00%
Items Units Charge Revenue
Customer Charge 12,852 4.75$ 61,047$
Energy
Summer
Peak 1,523,107 0.2220$ 338,130$
Off-Peak 2,720,134 0.0475$ 129,206$
Non-Summer
Energy 6,872,100 0.08319$ 571,690$
Energy Subtotal 11,115,341 1,039,026$
Total Revenue 0.09897$ 1,100,073$
Existing Rate Revenue 0.09843$ 1,101,104$
Difference 0.00054$ (1,031)$
Assumed Elasticity of Demand:
Residential
Time -of-Use Rate Structure
Time Period Selection Tools
Summer Peak Hours
Summer Months
0 1 2 3 4 5 6 7891011121314151617181920212223
1 2 3 4 5 6
7 8 9 10 11 12
TOU Rate Structure Selections
DocuSign Envelope ID: 2ACE1E19-BD60-49BD-BC9C-9B20199BEDC9DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 15
The results of the inputs and rate design parameters selected are communicated in histogram graphs
illustrating the distribution of the bill increases or decreases in dollars and percentages. The dashboard
also summarizes the potential or expected hourly load profile and/or adjusted or shifted peak demand of
the customer class subject to the time differentiated rates.
Task 4.5: Rate Comparisons with Other Utilities
Current and proposed rates will be compared with neighboring utilities for DME to understand the relative
position of rates with the neighboring utilities, and other utilities in Texas, as desired. DME will select
utilities with which to perform these comparisons at the Kick-Off Meeting.
Task 4.6: Impact Fee Development
NewGen will work with DME to develop an electric impact fee methodology and provide a new Impact
Fee Model to calculate applicable fee schedules. As part of this effort, NewGen will perform a survey of
other utilities’ methodologies and summarize the results to show common industry practices. NewGen
will provide a Microsoft Excel-based model designed to allow DME to maintain and update the cost and
investment information as needed. Additionally, the new model will identify costs associated with the
existing infrastructure that support the extension of service and will be designed to have “growth pay for
growth.”
DocuSign Envelope ID: 2ACE1E19-BD60-49BD-BC9C-9B20199BEDC9DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
16 Thoughtful Decision Making for Uncertain Times
Task 4.7 Rate Design Model Training
NewGen will provide a four-hour training session via webinar to DME staff to ensure they can update the
model in the future.
Phase 4 Deliverables:
Rate Design model including an analysis of customer bill impacts
Provide training for DME Staff to update the Rate Design Model
Updated AMI Rate Design Model
Webinar attended by at least two members of the Project Team to review rate design options
Competitive benchmarking of current and proposed rates
Impact Fee model
Provide training for DME Staff to update the Impact Fee Model
Phase 5: Reports and Presentations
Task 5.1: Preliminary Report
Upon completion of Phases 1 through 4, NewGen will prepare a preliminary report of the Study that will
describe the process, assumptions, and policy that led to the development of recommended rates and
impact fees. With respect to retail rates, the report will document the integration of DME’s policies, goals,
and objectives into rate design; summarize system operating characteristics; describe customer classes;
and present the COS and rate results, including supporting analyses. NewGen will demonstrate the
competitiveness of the proposed DME rates by benchmarking the rate recommendations and COS results
to selected utilities.
NewGen will submit the preliminary report electronically to the DME Team for review and comment. The
preliminary report will be reviewed with DME via conference call and changes will be made as appropriate.
Task 5.2: Presentations of Preliminary Study Results
NewGen will develop a PowerPoint presentation of the preliminary report and present preliminary Study
results to stakeholders including any Citizens Groups, the PUB, and City Council, as desired, to obtain
feedback regarding results. NewGen can be available to host a webinar or to give presentations in person
to stakeholders during one trip to Denton.
Task 5.3: Final Report and Deliverables
We will review feedback from the Citizen Groups, PUB, and City Council meetings as described in Task 5.2
with the DME Team via a conference call and will incorporate comments in the final report as appropriate.
Once this report is finalized, we will deliver a flash drive containing electronic copies of the report,
presentations, all models, and workpapers to DME.
DocuSign Envelope ID: 2ACE1E19-BD60-49BD-BC9C-9B20199BEDC9DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 17
Task 5.4: Presentations of Final Study Results
NewGen will develop a PowerPoint presentation of the preliminary report and present final Study results
to stakeholders including any Citizens Groups, the PUB, and City Council, as desired. NewGen can be
available to host a webinar or to give presentations in person to stakeholders during one trip to Denton.
Phase 5 Deliverables:
Electronic copy of the preliminary report
Electronic copy of the final report
Presentations of preliminary Study results via webinar or in person during a single trip attended
by up to two members of the Project Team
Presentations of final Study results via webinar or in person during a single trip attended by up to
two members of the Project Team
A flash drive containing electronic copies of the report, presentations, all models, and workpapers
as listed below:
• Updated Financial Planning Model
• COS Model
• Rate Design Model
• Updated AMI Rate Design Model
• Impact Fee Model
• Presentations
• Report
Project Schedule
NewGen is available to begin work immediately. Upon award of this contract, NewGen will send a detailed
data request to support the Study and host a Kick-Off Meeting. After receipt of all data, we estimate it
will take four to six months to complete Phases 1 through 5 depending on changes in rate design and
customer billing impacts.
PROPOSED PROJECT STAFF
NewGen evaluates the needs of each project and responds by assembling a Project Team of
knowledgeable professionals who are uniquely qualified to provide the services needed. The Project
Team includes experts in COS, rate design, stakeholder engagement, and analytical support needed to
accurately execute the work. NewGen seeks to be a trusted advisor to all our clients, and our Project
Team is committed to completing the identified services in a timely and professional manner.
DocuSign Envelope ID: 2ACE1E19-BD60-49BD-BC9C-9B20199BEDC9DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
Thoughtful Decision Making for Uncertain Times 1
COST ESTIMATE
NewGen proposes the following fee schedule for the City of Denton’s Electric Cost of Service and Rate
Design Study:
Phase and Task Cost Estimate
Phase 1: Project Management, Data Request, Kick-Off Meeting $26,000
Phase 2: Financial Forecast and Revenue Requirement $22,000
Phase 3: Cost of Service Study $32,000
Phase 4: Rate Design Study
Rate Design Model $38,000
Impact Fee Development $15,000
AMI Rate Design Model Update $15,000
Phase 5: Reports and Presentations $17,000
Subtotal $165,000
Optional
Per trip for two NewGen team members (not included above) $4,500
The cost associated with this scope of services will be based on the hourly billing rates of the project team,
including the reimbursement of reasonable travel-related expenses at cost. The estimated cost associated
for the services to be provided in the Scope of Work is $165,000, which excludes travel-related expenses.
Billing rates are set forth as follows:
NewGen Strategies and Solutions 2021 Billing Rates
Position Hourly Billing Rate
President / Managing Director / Director $230 - $360
Executive Consultant $220 - $320
Senior Consultant $190 - $220
Consultant $120 - $150
Administrative Services $110
Note: Billing rates are subject to change based on annual reviews and salary increases.
DocuSign Envelope ID: 7B266208-3E68-4D7B-9894-737A0CF565FDDocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CITY OF DENTON, TX
ELECTRIC COST OF SERVICE AND RATE DESIGN STUDY
RFQ #: 7628
2 Thoughtful Decision Making for Uncertain Times
UPDATED PROPOSED SCHEDULE
NewGen is available to begin work immediately. Upon award of this contract, NewGen will send a detailed
data request to support the Study and host a Kick-Off Meeting. After receipt of all data, we estimate it
will take four to six months to complete the project depending on changes in rate design and customer
billing impacts.
DocuSign Envelope ID: 7B266208-3E68-4D7B-9894-737A0CF565FDDocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Exhibit C
Bidder's attention is directed to the insurance requirements below. It is highly recommended
that bidders confer with their respective insurance carriers or brokers to determine in advance
of Bid submission the availability of insurance certificates and endorsements as prescribed and
provided herein. If an apparent low bidder fails to comply strictly with the insurance
requirements, that bidder may be disqualified from award of the contract. Upon bid award, all
insurance requirements shall become contractual obligations, which the successful bidder shall
have a duty to maintain throughout the course of this contract.
STANDARD PROVISIONS:
Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall
provide and maintain until the contracted work has been completed and accepted by the City of
Denton, Owner, the minimum insurance coverage as indicated hereinafter.
As soon as practicable after notification of bid award, Contractor shall file with the Purchasing
Department satisfactory certificates of insurance, containing the bid number and title of the
project. Contractor may, upon written request to the Purchasing Department, ask for clarification
of any insurance requirements at any time; however, Contractors are strongly advised to make
such requests prior to bid opening, since the insurance requirements may not be modified or
waived after bid opening unless a written exception has been submitted with the bid. Contractor
shall not commence any work or deliver any material until he or she receives notification that
the contract has been accepted, approved, and signed by the City of Denton.
All insurance policies proposed or obtained in satisfaction of these requirements shall comply with
the following general specifications, and shall be maintained in compliance with these general
specifications throughout the duration of the Contract, or longer, if so noted:
Each policy shall be issued by a company authorized to do business in the State of Texas
with an A.M. Best Company rating of at least A- VII or better.
Any deductibles or self-insured retentions shall be declared in the bid proposal. If
requested by the City, the insurer shall reduce or eliminate such deductibles or
self-insured retentions with respect to the City, its officials, agents, employees and
volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and
related investigations, claim administration and defense expenses.
Liability policies shall be endorsed to provide the following:
Name as additional insured the City of Denton, its Officials, Agents,
Employees and volunteers.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Consultants Insurance Requirements
That such insurance is primary to any other insurance available to the additional
insured with respect to claims covered under the policy and that this insurance
applies separately to each insured against whom claim is made or suit is brought.
The inclusion of more than one insured shall not operate to increase the insurer's
limit of liability.
Provide a Waiver of Subrogation in favor of the City of Denton, its officials,
agents, employees, and volunteers.
Cancellation: City requires 30 day written notice should any of the policies
described on the certificate be cancelled before the expiration date.
Should any of the required insurance be provided under a claims-made form,
Contractor shall maintain such coverage continuously throughout the term of
this contract and, without lapse, for a period of three years beyond the contract
expiration, such that occurrences arising during the contract term which give rise
to claims made after expiration of the contract shall be covered.
Should any of the required insurance be provided under a form of coverage that
includes a general annual aggregate limit providing for claims investigation or
legal defense costs to be included in the general annual aggregate limit, the
Contractor shall either double the occurrence limits or obtain Owners and
Contractors Protective Liability Insurance.
Should any required insurance lapse during the contract term, requests for
payments originating after such lapse shall not be processed until the City
receives satisfactory evidence of reinstated coverage as required by this contract,
effective as of the lapse date. If insurance is not reinstated, City may, at its sole
option, terminate this agreement effective on the date of the lapse.
SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS:
All insurance policies proposed or obtained in satisfaction of this Contract shall additionally
comply with the following marked specifications, and shall be maintained in compliance with these
additional specifications throughout the duration of the Contract, or longer, if so noted:
[X ] A. General Liability Insurance:
General Liability insurance with combined single limits of not less than $1,000,000.00
shall be provided and maintained by the Contractor. The policy shall be written on an
occurrence basis either in a single policy or in a combination of underlying and
umbrella or excess policies.
If the Commercial General Liability form (ISO Form CG 0001 current edition) is used:
Coverage A shall include premises, operations, products, and completed
operations, independent contractors, contractual liability covering this
contract and broad form property damage coverage.
Coverage B shall include personal injury.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Coverage C, medical payments, is not required.
If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and
ISO Form GL 0404) is used, it shall include at least:
Bodily injury and Property Damage Liability for premises, operations,
products and completed operations, independent contractors and property
damage resulting from explosion, collapse or underground (XCU)
exposures.
Broad form contractual liability (preferably by endorsement) covering this
contract, personal injury liability and broad form property damage liability.
[X] Automobile Liability Insurance:
Contractor shall provide Commercial Automobile Liability insurance with Combined
Single Limits (CSL) of not less than $500,000.00 either in a single policy or in a
combination of basic and umbrella or excess policies. The policy will include bodily injury
and property damage liability arising out of the operation, maintenance and use of all
automobiles and mobile equipment used in conjunction with this contract.
Satisfaction of the above requirement shall be in the form of a policy endorsement for:
any auto, or
all owned, hired and non-owned autos.
[X] Workers’ Compensation Insurance
Contractor shall purchase and maintain Worker's Compensation insurance which, in
addition to meeting the minimum statutory requirements for issuance of such insurance,
has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each
employee, and a $500,000 policy limit for occupational disease. The City need not be
named as an "Additional Insured" but the insurer shall agree to waive all rights of
subrogation against the City, its officials, agents, employees and volunteers for any work
performed for the City by the Named Insured. For building or construction projects, the
Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096
of the Texas Labor Code and rule 28TAC 110.110 of the Texas Worker's Compensation
Commission (TWCC).
[ ] Owner's and Contractor's Protective Liability Insurance
The Contractor shall obtain, pay for and maintain at all times during the prosecution of the
work under this contract, an Owner's and Contractor's Protective Liability insurance policy
naming the City as insured for property damage and bodily injury which may arise in the
prosecution of the work or Contractor's operations under this contract. Coverage shall be
on an "occurrence" basis, and the policy shall be issued by the same insurance company
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
that carries the Contractor's liability insurance. Policy limits will be at least combined
bodily injury and property damage per occurrence with a aggregate.
[X] Professional Liability Insurance
Professional liability insurance with limits not less than $1,000,000 per claim with respect
to negligent acts, errors or omissions in connection with professional services is required
under this Agreement.
[ ] Builders' Risk Insurance
Builders' Risk Insurance, on an All-Risk form for 100% of the completed value shall be
provided. Such policy shall include as "Named Insured" the City of Denton and all
subcontractors as their interests may appear.
[ ] Commercial Crime
Provides coverage for the theft or disappearance of cash or checks, robbery inside/outside
the premises, burglary of the premises, and employee fidelity. The employee fidelity
portion of this coverage should be written on a “blanket” basis to cover all employees,
including new hires. This type insurance should be required if the contractor has access to
City funds. Limits of not less than each occurrence are required.
[ ] Additional Insurance
Other insurance may be required on an individual basis for extra hazardous contracts and
specific service agreements. If such additional insurance is required for a specific contract,
that requirement will be described in the "Specific Conditions" of the contract
specifications.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
ATTACHMENT 1
[ ] Workers’ Compensation Coverage for Building or Construction Projects for
Governmental Entities
A. Definitions:
Certificate of coverage ("certificate")-A copy of a certificate of insurance, a certificate
of authority to self-insure issued by the commission, or a coverage agreement (TWCC-
81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation
insurance coverage for the person's or entity's employees providing services on a
project, for the duration of the project.
Duration of the project - includes the time from the beginning of the work on the
project until the contractor's/person's work on the project has been completed and
accepted by the governmental entity.
Persons providing services on the project ("subcontractor" in §406.096) - includes all
persons or entities performing all or part of the services the contractor has undertaken
to perform on the project, regardless of whether that person contracted directly with
the contractor and regardless of whether that person has employees. This includes,
without limitation, independent contractors, subcontractors, leasing companies, motor
carriers, owner-operators, employees of any such entity, or employees of any entity
which furnishes persons to provide services on the project. "Services" include, without
limitation, providing, hauling, or delivering equipment or materials, or providing
labor, transportation, or other service related to a project. "Services" does not include
activities unrelated to the project, such as food/beverage vendors, office supply
deliveries, and delivery of portable toilets.
B. The contractor shall provide coverage, based on proper reporting of classification codes
and payroll amounts and filing of any overage agreements, which meets the statutory
requirements of Texas Labor Code, Section 401.011(44) for all employees of the
Contractor providing services on the project, for the duration of the project.
C. The Contractor must provide a certificate of coverage to the governmental entity prior
to being awarded the contract.
D. If the coverage period shown on the contractor's current certificate of coverage ends
during the duration of the project, the contractor must, prior to the end of the coverage
period, file a new certificate of coverage with the governmental entity showing that
coverage has been extended.
E. The contractor shall obtain from each person providing services on a project, and
provide to the governmental entity:
1) a certificate of coverage, prior to that person beginning work on the project, so the
governmental entity will have on file certificates of coverage showing coverage for
all persons providing services on the project; and
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
2) no later than seven days after receipt by the contractor, a new certificate of coverage
showing extension of coverage, if the coverage period shown on the current
certificate of coverage ends during the duration of the project.
F. The contractor shall retain all required certificates of coverage for the duration of the
project and for one year thereafter.
G. The contractor shall notify the governmental entity in writing by certified mail or
personal delivery, within 10 days after the contractor knew or should have known, of
any change that materially affects the provision of coverage of any person providing
services on the project.
H. The contractor shall post on each project site a notice, in the text, form and manner
prescribed by the Texas Workers' Compensation Commission, informing all persons
providing services on the project that they are required to be covered, and stating how
a person may verify coverage and report lack of coverage.
I. The contractor shall contractually require each person with whom it contracts to
provide services on a project, to:
1) provide coverage, based on proper reporting of classification codes and payroll
amounts and filing of any coverage agreements, which meets the statutory
requirements of Texas Labor Code, Section 401.011(44) for all of its employees
providing services on the project, for the duration of the project;
2) provide to the contractor, prior to that person beginning work on the project, a
certificate of coverage showing that coverage is being provided for all employees
of the person providing services on the project, for the duration of the project;
3) provide the contractor, prior to the end of the coverage period, a new certificate of
coverage showing extension of coverage, if the coverage period shown on the
current certificate of coverage ends during the duration of the project;
4) obtain from each other person with whom it contracts, and provide to the contractor:
a) certificate of coverage, prior to the other person beginning work on the
project; and
b) a new certificate of coverage showing extension of coverage, prior to the end
of the coverage period, if the coverage period shown on the current certificate
of coverage ends during the duration of the project;
5) retain all required certificates of coverage on file for the duration of the project and
for one year thereafter;
6) notify the governmental entity in writing by certified mail or personal delivery,
within 10 days after the person knew or should have known, of any change that
materially affects the provision of coverage of any person providing services on the
project; and
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
7) Contractually require each person with whom it contracts, to perform as required
by paragraphs (1) - (7), with the certificates of coverage to be provided to the person
for whom they are providing services.
J. By signing this contract or providing or causing to be provided a certificate of coverage,
the contractor is representing to the governmental entity that all employees of the
contractor who will provide services on the project will be covered by workers'
compensation coverage for the duration of the project, that the coverage will be based
on proper reporting of classification codes and payroll amounts, and that all coverage
agreements will be filed with the appropriate insurance carrier or, in the case of a self-
insured, with the commission's Division of Self-Insurance Regulation. Providing false
or misleading information may subject the contractor to administrative penalties,
criminal penalties, civil penalties, or other civil actions.
K. The contractor’s failure to comply with any of these provisions is a breach of contract
by the contractor which entitles the governmental entity to declare the contract void if
the contractor does not remedy the breach within ten days after receipt of notice of
breach from the governmental entity.
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
CONFLICT OF INTEREST QUESTIONNAIRE
CONFLICT OF INTEREST QUESTIONNAIRE - FORM CIQ
For vendor or other person doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a).
By law this questionnaire must be filed with the records administrator of the local government entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code.
A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code. An offense under this section is a misdemeanor.
1 Name of vendor who has a business relationship with local governmental entity.
2 Check this box if you are filing an update to a previously filed questionnaire.
(The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.)
3 Name of local government officer about whom the information in this section is being disclosed.
Name of Officer
This section, (item 3 including subparts A, B, C & D), must be completed for each officer with whom the vendor has an employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment income, from the vendor? Yes No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer named in this section AND the taxable income is not received from the local governmental entity? Yes No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership of one percent or more? Yes No D. Describe each employment or business and family relationship with the local government officer named in this section.
4 I have no Conflict of Interest to disclose.
5
Signature of vendor doing business with the governmental entity Date
NewGen Strategies and Solutions, LLC
N/A
X
X
X
N/A
DocuSign Envelope ID: 93C2DC42-E1C4-4E47-A128-E9BE74FE2946
2/16/2021
EXHIBIT D
DocuSign Envelope ID: 1B9E9C07-53D3-4592-BA5D-55E08610E1C1
Certificate Of Completion
Envelope Id: 1B9E9C0753D34592BA5D55E08610E1C1 Status: Completed
Subject: Please DocuSign: City Council Contract 7628 - Cost of Service Study
Source Envelope:
Document Pages: 42 Signatures: 5 Envelope Originator:
Certificate Pages: 6 Initials: 1 Christa Christian
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-06:00) Central Time (US & Canada)
901B Texas Street
Denton, TX 76209
Christa.Christian@cityofdenton.com
IP Address: 198.49.140.104
Record Tracking
Status: Original
4/5/2021 4:55:30 PM
Holder: Christa Christian
Christa.Christian@cityofdenton.com
Location: DocuSign
Signer Events Signature Timestamp
Christa Christian
christa.christian@cityofdenton.com
Senior Buyer
City of Denton
Security Level: Email, Account Authentication
(None)
Completed
Using IP Address: 198.49.140.104
Sent: 4/5/2021 5:17:18 PM
Viewed: 4/5/2021 5:17:26 PM
Signed: 4/5/2021 5:17:54 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lori Hewell
lori.hewell@cityofdenton.com
Purchasing Manager
City of Denton
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.49.140.104
Sent: 4/5/2021 5:17:57 PM
Viewed: 4/6/2021 3:36:27 PM
Signed: 4/6/2021 4:31:43 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Christa Christian
christa.christian@cityofdenton.com
Senior Buyer
City of Denton
Security Level: Email, Account Authentication
(None)
Completed
Using IP Address: 198.49.140.104
Sent: 4/6/2021 5:23:41 PM
Viewed: 4/6/2021 5:24:07 PM
Signed: 4/6/2021 5:24:28 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Marcella Lunn
marcella.lunn@cityofdenton.com
Deputy City Attorney
City of Denton
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 68.185.202.16
Sent: 4/6/2021 4:31:45 PM
Resent: 4/6/2021 5:24:32 PM
Viewed: 4/6/2021 4:34:26 PM
Signed: 4/7/2021 8:21:24 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Signer Events Signature Timestamp
Scott Burnham
sburnham@newgenstrategies.net
Director
Security Level: Email, Account Authentication
(None)Signature Adoption: Drawn on Device
Using IP Address: 207.159.78.210
Sent: 4/7/2021 8:21:28 AM
Viewed: 4/7/2021 8:42:42 AM
Signed: 4/7/2021 8:45:49 AM
Electronic Record and Signature Disclosure:
Accepted: 4/7/2021 8:42:42 AM
ID: c5130a3d-287b-40c8-bb45-8a5a5d5b0910
Antonio Puente
Antonio.Puente@cityofdenton.com
Exec Mgr of Utilities
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 198.49.140.104
Sent: 4/7/2021 8:45:53 AM
Viewed: 4/7/2021 9:54:03 AM
Signed: 4/7/2021 9:54:25 AM
Electronic Record and Signature Disclosure:
Accepted: 4/7/2021 9:54:03 AM
ID: a73fe45c-9007-4792-9aaa-3f324eb1265b
Cheyenne Defee
cheyenne.defee@cityofdenton.com
Contract Administrator
City of Denton
Security Level: Email, Account Authentication
(None)
Completed
Using IP Address: 198.49.140.104
Sent: 4/7/2021 9:54:28 AM
Viewed: 5/5/2021 8:00:02 AM
Signed: 5/5/2021 8:01:06 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Sara Hensley
sara.hensley@cityofdenton.com
Interim City Manager
City of Denton
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.49.140.10
Sent: 5/5/2021 8:01:10 AM
Viewed: 5/5/2021 8:03:36 AM
Signed: 5/5/2021 8:03:50 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Rosa Rios
rosa.rios@cityofdenton.com
City Secretary
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 198.49.140.10
Sent: 5/5/2021 8:03:53 AM
Viewed: 5/5/2021 12:34:27 PM
Signed: 5/5/2021 12:35:05 PM
Electronic Record and Signature Disclosure:
Accepted: 5/5/2021 12:34:27 PM
ID: 891df970-ca5f-43f2-a57c-d36efcaf18ee
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Cheyenne Defee
cheyenne.defee@cityofdenton.com
Contract Administrator
City of Denton
Security Level: Email, Account Authentication
(None)
Sent: 4/5/2021 5:17:57 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Sherri Thurman
sherri.thurman@cityofdenton.com
City of Denton
Security Level: Email, Account Authentication
(None)
Sent: 4/7/2021 9:54:28 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Gretna Jones
gretna.jones@cityofdenton.com
Legal Secretary
City of Denton
Security Level: Email, Account Authentication
(None)
Sent: 4/7/2021 9:54:28 AM
Viewed: 4/8/2021 8:46:51 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
City Secretary Office
citysecretary@cityofdenton.com
Security Level: Email, Account Authentication
(None)
Sent: 5/5/2021 12:35:08 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Bill Shepherd
William.shepherd@cityofdenton.com
Security Level: Email, Account Authentication
(None)
Sent: 5/5/2021 12:35:09 PM
Electronic Record and Signature Disclosure:
Accepted: 5/4/2021 3:39:34 PM
ID: 685b3efd-8315-48ea-880e-658f7c6678e5
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 4/5/2021 5:17:18 PM
Certified Delivered Security Checked 5/5/2021 12:34:27 PM
Signing Complete Security Checked 5/5/2021 12:35:05 PM
Completed Security Checked 5/5/2021 12:35:09 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, City of Denton (we, us or Company) may be required by law to provide to
you certain written notices or disclosures. Described below are the terms and conditions for
providing to you such notices and disclosures electronically through your DocuSign, Inc.
(DocuSign) Express user account. Please read the information below carefully and thoroughly,
and if you can access this information electronically to your satisfaction and agree to these terms
and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of
this document.
Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available
electronically to you by us. For such copies, as long as you are an authorized user of the
DocuSign system you will have the ability to download and print any documents we send to you
through your DocuSign user account for a limited period of time (usually 30 days) after such
documents are first sent to you. After such time, if you wish for us to send you paper copies of
any such documents from our office to you, you will be charged a $0.00 per-page fee. You may
request delivery of such paper copies from us by following the procedure described below.
Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time
change your mind and tell us that thereafter you want to receive required notices and disclosures
only in paper format. How you must inform us of your decision to receive future notices and
disclosure in paper format and withdraw your consent to receive notices and disclosures
electronically is described below.
Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the
speed at which we can complete certain steps in transactions with you and delivering services to
you because we will need first to send the required notices or disclosures to you in paper format,
and then wait until we receive back from you your acknowledgment of your receipt of such
paper notices or disclosures. To indicate to us that you are changing your mind, you must
withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your
DocuSign account. This will indicate to us that you have withdrawn your consent to receive
required notices and disclosures electronically from us and you will no longer be able to use your
DocuSign Express user account to receive required notices and consents electronically from us
or to sign electronically documents from us.
All notices and disclosures will be sent to you electronically
Unless you tell us otherwise in accordance with the procedures described herein, we will provide
electronically to you through your DocuSign user account all required notices, disclosures,
authorizations, acknowledgements, and other documents that are required to be provided or
made available to you during the course of our relationship with you. To reduce the chance of
you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required
notices and disclosures to you by the same method and to the same address that you have given
us. Thus, you can receive all the disclosures and notices electronically or in paper format through
the paper mail delivery system. If you do not agree with this process, please let us know as
described below. Please also see the paragraph immediately above that describes the
consequences of your electing not to receive delivery of the notices and disclosures
electronically from us.
Electronic Record and Signature Disclosure created on: 7/21/2017 3:59:03 PM
Parties agreed to: Scott Burnham, Antonio Puente, Rosa Rios, Bill Shepherd
How to contact City of Denton:
You may contact us to let us know of your changes as to how we may contact you electronically,
to request paper copies of certain information from us, and to withdraw your prior consent to
receive notices and disclosures electronically as follows:
To contact us by email send messages to: purchasing@cityofdenton.com
To advise City of Denton of your new e-mail address
To let us know of a change in your e-mail address where we should send notices and disclosures
electronically to you, you must send an email message to us at melissa.kraft@cityofdenton.com
and in the body of such request you must state: your previous e-mail address, your new e-mail
address. We do not require any other information from you to change your email address..
In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected
in your DocuSign account by following the process for changing e-mail in DocuSign.
To request paper copies from City of Denton
To request delivery from us of paper copies of the notices and disclosures previously provided
by us to you electronically, you must send us an e-mail to purchasing@cityofdenton.com and in
the body of such request you must state your e-mail address, full name, US Postal address, and
telephone number. We will bill you for any fees at that time, if any.
To withdraw your consent with City of Denton
To inform us that you no longer want to receive future notices and disclosures in electronic
format you may:
i. decline to sign a document from within your DocuSign account, and on the subsequent
page, select the check-box indicating you wish to withdraw your consent, or you may;
ii. send us an e-mail to purchasing@cityofdenton.com and in the body of such request you
must state your e-mail, full name, IS Postal Address, telephone number, and account
number. We do not need any other information from you to withdraw consent.. The
consequences of your withdrawing consent for online documents will be that transactions
may take a longer time to process..
Required hardware and software
Operating Systems: Windows2000? or WindowsXP?
Browsers (for SENDERS): Internet Explorer 6.0? or above
Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0,
NetScape 7.2 (or above)
Email: Access to a valid email account
Screen Resolution: 800 x 600 minimum
Enabled Security Settings:
•Allow per session cookies
•Users accessing the internet behind a Proxy
Server must enable HTTP 1.1 settings via
proxy connection
** These minimum requirements are subject to change. If these requirements change, we will
provide you with an email message at the email address we have on file for you at that time
providing you with the revised hardware and software requirements, at which time you will
have the right to withdraw your consent.
Acknowledging your access and consent to receive materials electronically
To confirm to us that you can access this information electronically, which will be similar to
other electronic notices and disclosures that we will provide to you, please verify that you
were able to read this electronic disclosure and that you also were able to print on paper or
electronically save this page for your future reference and access or that you were able to
e-mail this disclosure and consent to an address where you will be able to print on paper or
save it for your future reference and access. Further, if you consent to receiving notices and
disclosures exclusively in electronic format on the terms and conditions described above,
please let us know by clicking the 'I agree' button below.
By checking the 'I Agree' box, I confirm that:
• I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF
ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and
• I can print on paper the disclosure or save or send the disclosure to a place where I can
print it, for future reference and access; and
• Until or unless I notify City of Denton as described above, I consent to receive from
exclusively through electronic means all notices, disclosures, authorizations,
acknowledgements, and other documents that are required to be provided or made
available to me by City of Denton during the course of my relationship with you.
