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HomeMy WebLinkAbout1997-062J \WPDOCB\ORD\BLACK&V ORD ORDINANCE NO 6T7— Q�p ,3k. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH BLACK & VEATCH FOR COMPLETION OF A UTILITY MANAGEMENT STUDY, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is hereby authorized to execute a Professional Services Agreement with Black & Veatch, a copy of which is attached hereto and incorporated herein SECTION II That the expenditure of funds as provided in the attached agreement is hereby authorized SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the � day of �' 1997 JA C ILLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY r BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY DATE MARCH 4, 1997 CITY -COUNCIL REPORT TO Mayor and Members of the City Council FROM Kathy DuBose, Executive Director of Finance SUBJECT RFSP # 1966 - UTILITY DEPARTMENT MANAGEMENT STUDY RECOMMENDATION: We recommend this RFSP # 1966 for a Utility Department Management Study be awarded to Black and Veatch in the not -to -exceed amount of $160,000 00 SUMMARY. This proposal is for a professional consultant group to perform a management study of the Utility Department The study is a requirement of the City Charter and is to be performed at ten year intervals Five proposals were submitted in response to twenty five solicitations mailed Those submitting proposals were Arthur Anderson Barrington Wellesley Group Deloitte & Touche, LLP Schumaker & Associates Black and Veatch Black and Veatch and Schumaker and Associates were selected for presentations to the selection panel Black and Veatch was selected by the panel and the recommendation presented to the Public Utility Board The Public Utility Board approved the contract subject to legal review on February 17, 1997 The contract is based upon a scope of services with an estimated time assigned to each task Project billing will be based upon actual hours spent on the project PROGRAMS, DEPARTMF,NTSQI-GROUMAFFECTED. Denton Municipal Utilities FISCAL IMPACT. This project is limited to a not -to -exceed $160,000 00 and will be funded from Utility Department Funds Attachments Minutes from Public Utility Board dated February 17, 1997 (Item 15) Respectfully submitted �OSt Kat B e Executive Director of Finance Approved Name I om taw, Title Purchasing Agent 840 AGENDA FROM, DENTON UTIL RDMI FAX NO 1 8175668120 02-18-97 08t38A P 03 CITY OF DENTON PUBLIC UTILITIES BOARD ANNUAL PLANNING SESSION February 17, 1997 Minutes Ex4erpt - IS CONSIDER APPROVAL OF A CONTRACT WITH BLACK AND VEATCH CONSULTANTS TO PERFORM A UTILITY MANAGEMENT STUDY Mr Nelson presented this item He said that the draft contract was being completed by the Legal department with revisions in the special provisions area, minor format changes and a thorough review of the newly received project deliverables A Management Study Oversight Committee was sanctioned and will meet on a weekly basis with Utility management to provide feedback and information as the study progresaea Mr Hopkins made a motion to approve the contract subject to Legal review Mr I hompson seconded the motion All ayes, no nays motion approved 4 PROFESSIONAL SERVICES AGREEMENT FOR UTILITY MANAGEMENT STUDY STATE OF TEXAS § COUNTY OF DENTON § THIS AGREEMENT is made and entered into as of the 7, day of AA" 2, 1997, by and between the City of Denton, Texas, a Municipal Corporation, with its principal office at 215 E McKinney Street, Denton, Denton County, Texas 76201 (hereinafter referred to as "OWNER") acting herein by and through its duly authorized City Manager; and Black & Veatch, a partnership with its principal office at 8400 Ward Parkway, Kansas City, Missouri 64114 (hereinafter referred to as "CONSULTANT"), acting herein by and through its duly authorized representative WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually AGREE as follows: ARTICLE I ENGAGEMENT OF CONSULTANT The OWNER hereby contracts with CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services herein in connection with the Project as stated in the sections to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas The professional services set out herein are in connects^n with the following described project Management Study of the City of Denton, Texas Utility Department (hereinafter referred to as the "Project") The Project shall include without limitation , the preparation of a management study of the City of Denton, Texas Utility Department, expressly including a general management review of the City,s Utility Department, as well as a comparative analysis of the City's Utility Department with other publicly and privately -owned utilities ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the following services in a professional manner - A The CONSULTANT shall perform all those services as necessary and as described in OWNER'S Request for Sealed Proposal #1966 (Opening date January 14, 1997), which is attached hereto and incorporated by reference, and made a part hereof as Exhibit "A", as if written word for word herein B To perform all those services (hereinafter referred to as the "Basic Services") set forth in CONSULTANT'S Scope of Services (hereinafter referred to as the "Scope of Services") is attached hereto and incorporated by reference 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 which shall be attached to this Agreement and made a part hereof for all purposes as separate agreements Any and all pre-printed terms and conditions shown on any task order shall be null and void D CONSULTANT shall furnish to OWNER the Pro]ect Deliverables which are set forth on the List of Project Deliverables (hereinafter referred to as the "Pro3ect Deliverables"), which is attached hereto and incorporated by reference, and made a part hereof as Exhibit "C", as if written word for word herein E 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 PAGE 2 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, are described as follows A Assisting OWNER or Contractor 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 B Sampling, testing or analysis beyond that specifically included in Basic Services ARTICLE IV PERIOD OF SERVICE This Agreement shall become effective upon execution by the OWNER and the CONSULTANT of this Agreement and upon issuance of a written notice to proceed by the OWNER, and shall remain in force for the period which may reasonably be required for the completion of the Project, including Additional Services, if any, and any required extensions approved in writing, by the OWNER This Agreement may be sooner terminated in accordance with the provisions hereof Time is a material consideration in this Agreement The CONSULTANT shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule established by the OWNER, acting through its City Manager or his designee OWNER requires that CONSULTANT perform its management study in accordance with the Project Schedule (hereinafter referred to as the "Project Schedule"), which is attached hereto and incorporated by reference and made a part hereof as Exhibit I'D", as if written word for word herein CONSULTANT shall not be responsible for delays in completion of the Project which are attributable to circumstances beyond its reasonable control. PAGE 3 ARTICLE V COMPENSATION A COMPENSATION TERMS 1 "Subcontract Expense" is defined as expenses incurred by the CONSULTANT in engagement of others in outside firms for services incident to the completion of the Project 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 directly incurred in connection with that assignment B BILLING AND PAYMENT For and in consideration of the professional services to be performed by the CONSULTANT herein to fully complete the Project in a professional manner in accordance with the Scope of Services, the OWNER agrees to pay a total fee (including reimbursement for direct non -labor expense) not to exceed ONE HUNDRED SIXTY THOUSAND DOLLARS ($160,000 00) CONSULTANT has prepared a preliminary estimate of the cost detail anticipated in its completion of the Project which is shown in Exhibit "E" consisting of eight (8) pages, which Exhibit is attached hereto and incorporated by reference herein, and made a part of this Agreement as if written word for word herein The parties acknowledge that said estimate is a good faith preliminary estimate of the anticipated work and expense to complete the Project, and is not the sole basis upon which the total fee is established 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 PAGE 4 designees, however, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered The OWNER may withhold the final 5% of the contract amount until completion of the Pro)ect 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 designees, or for any statement 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 the terms of this Agreement It is specifically understood and agreed that the CONSULTANT shall not be authorized to undertake any work, or perform any professional services, 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 hereinabove stated, without first having obtained prior written authorization from the OWNER The CONSULTANT shall not proceed to perform the services listed 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 "Ell Payments for additional services shall be due and payable upon submission by the CONSULTANT and shall be paid in accordance with Article V B hereof Statements shall not be submitted to OWNER by CONSULTANT more frequently than monthly PAGE 5 D PAYMENT If OWNER fails to make payments due the CONSULTANT for services and expenses within sixty (60) days after receipt of the CONSULTANT'S undisputed statement thereof, the amounts due the CONSULTANT will be increased by the rate of one percent (1k) per month from the said sixtieth (60th) day, and in addition, 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 provided However, nothing herein shall require OWNER to pay the late charge of one percent (1%) set forth herein if OWNER reasonably determines the work performed by CONSULTANT is unsatisfactory, in accordance with this Agreement In the event OWNER questions some portion or element of an invoice, that fact shall be communicated in writing by OWNER to the CONSULTANT immediately CONSULTANT will reasonably cooperate to effect resolution of the problem and shall transmit a revised invoice to OWNER as is necessary or appropriate Amounts not questioned by OWNER shall be promptly paid to CONSULTANT in accordance with the above payment provisions 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 of CONSULTANT'S subcontractors or subconsultants on the Project 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 PAGE 6 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 OWNER'S use of these documents in other projects shall be at OWNER'S sole risk and expense In the event the OWNER uses the Agreement in another project or for other purposes than specified herein any of the information or materials developed pursuant to this Agreement, CONSULTANT is released from any and all liability relating to their use in that other project CONSULTANT shall retain its rights in its standard drawing details, designs, specifications, databases, computer software and any other proprietary property Rights to intellectual property developed, utilized, or modified in the performance of the CONSULTANT'S services under this Agreement shall remain the property of the CONSULTANTS ARTICLE VIII 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 IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officers, 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 incurred by the OWNER, and including without limitation, damages for bodily and personal injury, death and property damage, to the extent caused by the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, or employees 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 party's defenses, both at law or equity, to any claim, cause of action or litigation filed by PAGE 7 anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved ARTICLE X INSURANCE During the performance of the professional services by CONSULTANT under this Agreement, CONSULTANT shall maintain the following insurance coverage with insurance companies licensed to do business in the State of Texas by the State Insurance Commission, or any successor agency that has a rating with Best Rate Carriers of at least "A"- or above A Commercial General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence, and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence, and not less than $100,000 in the aggregate B Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person, and not less than $500,000 for each accident, and with property damage limits of not less than $100,000 for each accident C Worker's Compensation Insurance in accordance with statutory requirements and Employers' Liability Insurance with limits of not less than $100,000 for each accident D Professional Liability Insurance with policy limits of not less than $1,000,000 annual aggregate E CONSULTANT shall furnish insurance certificates at the OWNER's request to evidence such coverage The insurance policies shall name the OWNER as an additional insured on all such policies, except for the worker's compensation and professional liability coverage, and shall contain a provision that such insurance shall not be canceled or modified without thirty (30) days prior written notice to OWNER and CONSULTANT In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation, deliver to OWNER substitute certificates of insurance which furnish the same coverage PAGE 8 ARTICLE XI ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation No arbitration or alternate dispute resolution 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 ARTICLE XII TERMINATION OF AGREEMENT A Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by giving thirty (30) days advance written notice to the other party 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 this Agreement and setting forth the reason or reasons specifying the nonperformance, and not less than thirty (30) 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 ser- vices 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, herein 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 PAGE 9 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 own use ARTICLE XIII 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 OWNER for any defect in the design or other work prepared by the CONSULTANT, its employees, subcontractors, agents and consultants ARTICLE XIV 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 at 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 Black & Veatch ATTN John Gallagher Title Partner 11900 East Cornell Ave Suite 300 Aurora, Colorado 80014 To OWNER City of Denton ATTN Robert E Nelson Title Exec Dir of Utilities 215 E McKinney Denton, Texas 76201 All notices shall be deemed effective upon receipt by the party to whom such notice is given or within three days after mailing PAGE 10 ARTICLE XV ENTIRE AGREEMENT This Agreement consisting of fifteen (15) pages and five (5) exhibits constitutes the complete and final expression of the 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 XVI 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 of this Agreement to be invalid or unenforceable In such event, the OWNER and CONSULTANT 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 parties regarding the stricken provision ARTICLE XVII COMPLIANCE WITH LAWS The CONSULTANT shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder in effect during the performance of services by CONSULTANT `ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, the CONSULTANT shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap PAGE 11 ARTICLE XIX 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 in the performance of services that may arise during the term of this Agreement immediately upon discovery of any such conflict 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 federal, state and local laws to perform such services ARTICLE XX ASSIGNABILITY 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 XXI MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith 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, unless such waiver or modification is in writing, duly executed The parties further agree that the provisions of this section will not be waived unless by written agreement so providing PAGE 12 ARTICLE XXII MISCELLANEOUS A The following exhibits are attached to and made a part of this Agreement 1 OWNER'S Request for Sealed Proposal #1966 (Exhibit "A"), 2 CONSULTANT'S Scope of Services (Exhibit "B"), 3 List of Project Deliverables (Exhibit "C"), 4 Project Schedule (Exhibit "D"), and 5 Cost Estimate Summary (Exhibit "E") B CONSULTANT agrees that OWNER shall, until the expiration of three (3) years after the final payment under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of the CONSULTANT related to the direct cost of goods and services provided under this Agreement CONSULTANT agrees that OWNER shall have access during normal working hours to all necessary CONSULTANT facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section OWNER shall give CONSULTANT reasonable advance notice of intended audits C This Agreement shall be construed in accordance with the laws of the State of Texas Venue of any suit or cause of action brought under this Agreement shall lie exclusively in Denton County, Texas D For the purpose of this Agreement, the key persons who will perform most of this work hereunder are as listed in the Appendix of CONSULTANT'S proposal However, nothing herein shall limit CONSULTANT from using other qualified and competent members of its firm to perform the services required herein E CONSULTANT shall commence, carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, efficient manner, and, in accordance with the provisions hereof In accomplishing the Project, CONSULTANT shall take such steps as are appropriate to ensure that the work involved is properly coordinated with any related work being carried on by the OWNER F The OWNER shall assist the CONSULTANT by placing at the PAGE 13 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 to, 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 G 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 XXIII LIMITATIONS To the extent permitted by law, CONSULTANT shall not be liable to OWNER for any special, or indirect damages resulting in any way from its performance of the services under this Agreement XXIV THIRD PARTY RIGHTS Nothing in this Agreement shall be construed to confer any rights or benefits to any person or entity other than OWNER and CONSULTANT IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and CONSULTANT has caused this Agreement to be executed by its duly authorized Partner on this the day of 1997 '7AIR,,7 CITY OF DENTON, TEXAS A Municipal Corporation BY 7 TED BENAVIDES, CITY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY By bllfiAj� PAGE 14 APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY,, CITY ATTORNEY By:MA L1 J:\WPDOCS\K\B&VEATCB.K CONSULTANT BLACK & VEATCH A Partnership By: Gl ! JOHN OhLLAGHER, Pa ner PAGE 15 CITY OF DENTON RFSP # 1966 UTILITY DEPARTMENT MANAGEMENT STUDY OPENING DATE: JANUARY 14,1997 Exhibit A CITY OF DENTON REQUEST FOR PROPOSALS t V I "IM 1 MAl 1Cg_ ICI 1 RFSP #1966 I. GENERAL The Charter of the City of Denton prescribes that "at intervals not exceeding ten (10) years the council shall at the expense of the utilities involved cause a general management survey to be made of all utilities under the jurisdiction of the board by a competent management consulting or industrial engineering firm, the report and recommendations of which shall be made public " The City of Denton is seeking proposals from qualified professional or engineering firms to conduct this charter prescribed management study Denton and all local governments are facing increasing pressure to achieve greater productivity, efficiency and effectiveness in providing services Denton recognizes that to meet these expectations that bench marking, business process redesign and outsourcing are some of the methods being used by local governments to address the more competitive utility environment that exists today Therefore, in addition to the general management study as prescribed by the charter, Denton desires that a bench marking of operational costs be performed on selected significant cost components of the various utility operating divisions and that business process redesign and outsourcing, if determined appropriate, be included as a consideration in the recommendations resulting from this study This study, should evaluate the cost and quality of Denton's existing utility services and provide recommendations including general and specific operational actions and policy changes, which can be used as a guide for changes so that Denton can assure its citizens are receiving quality, cost effective utility services which compare favorably with other similar utilities in the region A. Proposal Delivery Please submit six (6) copies of your written proposal not later than 2 00 p in on January 14, 1997, to Mr Tom Shaw Purchasing Agent City of Denton 901-B Texas Street Denton, Texas 76201 The proposal is not to exceed 35 pages (not including the attached examples of work product and team members' resumes ) AM049D4 Itn City of Denton RFP Utility Department Management Study B. Inquiries and Pre -proposal Meetina• Submit all inquiries about the pmlect to Mr R E Nelson, City of Denton, City Hall, Department of Utilities, 215 E McKinney, Denton, TX 76201 in writing at the above address A pre -proposal meeting will be held in Denton, Texas, at 2 00 p in December 17, 1996, in the Denton City Hall, Civil Defense Room Firms not attending the pre -proposal meeting may not receive further consideration for this assignment All inquiries should be submitted in writing to Mr Nelson no later than 5 00 p m , January 3, 1997 Responses to written inquiries will be provided to all proposers attending the pre -proposal conference All communications should be directed in writing to Mr R E Nelson Proposers should refrain from contacting members of the selection team C. Cost of Proposal Preparation Please note that no reimbursement will be made by the City of Denton for any costs incurred in the preparation of this proposal, attendance at the pre -proposal meeting, and/or any oral presentation (if required) H. DESCRIPTION OF PROJECT A. Study Objective/Purpose The purpose of this study is to perform the general management study as prescribed by the City charter, to perform an overall benchmarking comparative analysis of the major cost components of the various utility operating divisions and provide recommendations of changes, for internal improvements including options for outsourcing, that will enhance the efficiency and effectiveness of Utility services in the City of Denton B. Scopg of Project The study shall include an independent evaluation of the general management of the electric, water, wastewater (including stormwater drainage) and municipal solid waste (MSW) utilities and the city's fleet services It shall also include a comparative analysis of major cost components for the various utility operating divisions The comparative analysis part of the study should concentrate on examining the areas with the greatest cost reduction potential The study should examine such issues as use of technology, competitive outsourcing, operational methodologies, purchase of services and products, labor, power, chemicals, vehicles, equipment, etc 1. General Management- In the general management part of the study, all aspects of the city's utility should be reviewed in the context of how each aspect relates to the cost or function of providing utility services Included, but not limited in this review, shall be such issues as governance, organizational structure, financial practices, development policies, support services, franchise and PILOT AAAO49D4 rm City of Denton RFP Utility Department Management Study transfers, communications, public relations, planning and budgeting processes, rate development and administration, etc Governance review shall consider the Council, Public Utility Board, Management structure as outlined in the charter and analyze actual practice for compliance and effectiveness Organizational structure review shall consider the present business service structure effectiveness versus other possible organizational structures such as operational function The review should also include, but not be limited to, reviews of various operational units and their relationship in the overall utility organization structure It should also examine span of control and the size of various work units, especially field service crews Financial practices review shall examine the financial condition, strength, appropriate ratios, debts and assets, general practices, etc of the financial issues of each utility Development policies review shall examine the city and utility overall utility development policies that affect the various utilities financially, planning wise, operationally, etc Support services review shall examine the various support services provided by the city's general government departments in the provision of utility services The support service review shall include, but may not be limited to, utility billing, customer service, accounting, purchasing, warehousing, legal, information services, human resources, risk management, finance, treasury, utility engineering and inspection, etc Franchise and payment in lieu of taxes (PILOT) review shall examine the practices in Denton as compared to other similar cities and the comparative impact on utility rates and services Communications review shall examine the general communications, formal and informal, necessary for the internal functioning of the Utility, other city departments and governance structures in the process of intelligence gathering, decision making, directing, controlling, monitoring and informing, the staff involved in providing utility services Public relations review shall examine the formal and informal public relations programs, mediums, etc for effectively informing and coordinating with customers Public relations and external communications reviews may be AAA049D4 rm - 3 - City of Denton RFP Utility Department Management Study overlapping and the consultant shall organize as determined appropriate to address these important functions Planning review shall examine, but shall not be limited to, the processes of strategic planning, capital improvement planning, financial planning, strategic rate planning, etc This review should examine the processes for appropriate public, governance and staff input and for analysis process, decision making, plan approval and implementation The specific plans for electric power supply, water supply and treatment, wastewater treatment, solid waste management including recycling and landfill, regional and partnership involvements in all utility areas, delivery facilities for electric, water, wastewater and solid waste collection services, etc shall be included in the general sections applicable to the comparative analysis part of this management study versus this planning section of the general management part of this study Budgeting review shall examine the process of budget development, approval, implementation and monitoring This shall include the capital and operating budget processes Rate development and administration review shall examine the process of developing, implementing and administrating rates for electric, water, wastewater and solid waste utility services This review should provide a cursory review of the market sensitivity and flexibility of Denton's rates and the comparability of Denton's rates with other similar communities in the area The Denton staff has a good data base of comparative rates but the consultant shall verify the accuracy of this data base before utilizing or including as part of the study The consultant shall also review all other management issues that may have a significant affect on the management efficiency or effectiveness of the utility 2. Comparative Analysis -The comparative analysis part of the management study shall examine the selected significant cost component segments of each operating division of the Utility Department The management study report should include a general section for each of the main utility services of electric, water, wastewater and solid waste plus fleet services Where appropriate, each of the subunits of the main utility services should also include a general section, example -water production, electric production, wastewater plant, landfill, etc The comparative analysis of the main utility services and their sub -units shall include, but may not be limited to, Electric Utility - Electric power supply, fuel, power pooling and partnerships, power production, transmission, substations, distribution, engineering, metering, AAA049134 rm 4 City of Denton RFP Utility Department Management Study radio services, fiber optic services, and computer/techmcal services to internal/external organizations Water Utilitv - Raw Water Supply, regional partnerships, treatment, storage and pressure pumping, distribution, engineering, metering and wholesale services Wastewater Utilitv - Collection, Pumping Stations, treatment, biosolids management, regional partnerships, wholesale services and stormwater drainage Solid Waste Utilitv - Residential collection, commercial collection, landfill, composting, recycling Fleet Services - Vehicle maintenance, parts, fuel services SSupRort Services - utility billing customer service, accounting, purchasing, warehousing, legal information services, human services, risk management, finance and treasury, utility engineering and inspection 3 Outsourcinn - If during the course of the general management or comparative analysis review, the consultant finds that any function the utility or city is now performing by its own personnel is not reasonably comparable or competitive and that there are significant reasons to conclude would not be comparable or competitive within a reasonable timeframe the consultant shall present the issues involved with those functions in the scheduled May 1997 interim report If outsourcing is an appropriate recommended action, to address the concerns of such function(s), the consultant may be requested to provide an RFP and a detailed plan for implementation for outsourcing Such an effort if requested, must have prior approval of the city and will result in an amendment to the consultants base contract C. Proiect Dellverables• It is anticipated that the project will be completed in phases with interim draft reports on key issues being prepared for review by the City The final report would be a single comprehensive document including all interim reports The cost of service and comparative relationship (bench marking) to other utilities of comparable size is required The analysis shall include the major cost components such as labor, power, chemicals, amortization of capital facilities, purchased services and products, and other factors The City of Denton's cost shall be measured against other comparable utilities and the competitive market, if applicable The City does not anticipate engaging the selected consultant to implement the recommendations contained in the consultant's report, either as a prime consultant or as a sub -consultant AAA049D4 ft 5 City of Denton RFP Utility Department Management Study D. Contract and Confidentiality The working documents of the study and information therein are to be treated in confidence by the consultant Such documents and use of the City as a reference is not to be disclosed to any party without the prior written approval of the City All proposers on this project will be required to execute a confidentiality agreement (three year's duration) The proposer who is selected to perform this study will be required to execute a professional services contract approved as to form by the City Attorney, which will include a provision which prohibits the successful proposer or any subcontracting professional or engineering firm who performs work on this study from bidding, submitting proposals, or performing any other work for the City on any contract or any other municipal function, operation, or service that is outsourced or results directly or indirectly from this study for a period of three years after the completion of this study No information obtained from the proposal process or any work activities can be divulged to any party other than those designated in writing by the City of Denton Several areas that will be subject to review are areas where a competitive market is or will soon exist The consultant shall be cognizant of the ramifications of divulging information that may be critical to the Utility's ability to compete in such markets The consultant shall present information in reports in such a manner that does not make available critical marketing and confidential information to competing entities E. Services Furnished by the City of Denton The City will furnish the following to assist the consultant on this project A single individual designated as the City's representative All readily available information from the City's existing records including prior management studies, financial analysis, operational parameters such as commodity sales and revenues of water/wastewater, tonnage of municipal solid waste, electric etc , existing reports forecasts, budgets, master plans, future utilities requirements, rate studies, annual reports and any other data currently available from the City The City's representative will act as a liaison to the consultant in requesting information from other municipal, utility, state or other organizations upon request of the consultant The city will obtain from other parties such information as the consultants determine necessary for conducting the management study F. Description of Utility Operations Budgets and Organization (See Appendix A) AAA049D4 fin 6 City of Denton RFP Utility Department Management Study M. PROPOSAL REQUIREMENTS A. Information to be Submitted Please include as a minimum the following information with your submittal in the order indicated 1. Transmittal Letter Indicate the person authorized to contract on behalf of the proposer and any subcontractors or other parties which form a part of your proposed team 2. Overall Approach and Work Plan The proposer should be specific in discussing the work plan so that the level of analysis estimated is sufficient to permit an evaluation of your approach 3. Qualifications a. Firm: General description of your firm, including the types of professional or engineering services available, domestic or foreign ownership, general areas of practice, number of employees in offices, and an approximate annual average billing volume for the last three years Also indicate the percentage of your revenues which have been derived over the last three years for similar management consulting services to publicly owned utilities and to privately owned utilities The Firm, either within its own personnel or through sub -consultants, must have expert technical personnel in each of the functional areas of electrical, water, wastewater, solid waste and fleet services b. Project organization and personnel Provide an organizational chart depicting the principal management consultant, the project manager, and any key support personnel and their specific roles in the project In addition, indicate an average percent of utilization on this assignment anticipated during the course of the study for each of the key members of your project team, and the location of their principal office Indicate the correlation with the proposed project team personnel and the project descriptions of past assignments of a similar nature performed by your firm in the last five years Identify sub -consultants or personnel from other organizations who would be assisting on this assignment C. Recent similar projects with budget and references Indicate a listing of the top ten clients (determined by annual billings) over the last three years for similar type assignments AAA049D4 fin 7 City of Denton RFP Utility Department Management Study Also provide a listing of not less than five similar management studies conducted for public utilities in the last five years Include the name, title, address, and current telephone number of the client representative Indicate the date the project was completed, the total project cost, and to what extent the projects involved similar scopes such as water and wastewater, electrical utility, municipal solid waste, or a combination of these areas Identify members of your proposed project team who worked on the project, as well as their roles Note whether any of these projects were completed as a sub -consultant to another firm d. Client profile Please provide an estimated percentage of work your firm has completed within the last three years for the following major categories Public Utilities, Investor -Owned Utilities, Privatized Utilities Service Providers or related industries for other clients, and other clients e. Conflict of Interest The consultant should identify any conflicts of interest, including but not limited to services other than management consulting provided to other utility clients, construction firms, private contract operators, equipment manufacturers, or related business entities Other business relationships which could affect the independence of the management consultant to serve the best interest of the City of Denton must also be identified (these include parent company ownership, subsidiary firms, other alliances or affiliations such as joint ventures or preferred teaming arrangements) and any other factor which may affect the objectivity of the management consultant Failure to make such disclosure could result in the disqualification of the consultant for the project 4. Sample Work Product Include one (1) report of a similar scope and nature to serve as an example of the consultant's completed work product Also include executive summaries of two (2) additional studies completed within the last five years These reports will be used by the selection committee to evaluate the style, content and depth of the study anticipated by the consultant on the City of Denton's project. The information will be handled confidentially and returned to all proposers immediately following selection If necessary, the consultant is free to remove the client's name from the examples B. FUTURE OUTSOURCING ELIGIBIIdTY The firm who is selected to perform this study or any subcontracting professional or engineering firm who performs work on this study shall not be eligible for a period of three years after completion of this study to bid on or contract for any municipal operational function that is outsourced as a result of this study AAAo49D4 fin 8_ City of Denton RFP Utility Department Management Study IV. SCHEDULE AND SELECTION PROCESS A. Schedule The City of Denton proposes to evaluate the submitted proposals in accordance with the following schedule 1 Pre -proposal meeting, December 17, 1996 2 All proposals received by 2 00 p m , January 14, 1997 3 Consultants short-listed for interviews will be notified by January 20, 1997 4 Interview of short-listed firms, January 24, 1997 5 The selected firm will be notified by January 27, 1997 6 Contract negotiation completed by February 3, 1997 7 Notice to Proceed will be issued on February 21, 1997 8 Interim reports on specific issues due in April, May & June 1997 9 Presentation of Preliminary Report to the Public Utilities Board/City Council on June 23, 1997 10 Presentation of Final Report to Public Utilities Board/City Council on July 8, 1997 B. Evaluation/Selection Critena The City of Denton will appoint a selection committee composed of five members including a Council member, Public Utility Board member, City Manager, Executive Director of Utilities and Executive Director of Finance The selection committee will review the submitted proposals using the following selection cntena and weighing factors Experience, quality and availability of assigned team members (30 points) 2 Project approach for this assignment (20 points) 3 Recent firm experience with comparable utilities and study costs (20 points) Independence and absence of conflicts of interest of management consultant (20 points) Other factors (10 points) C. Minority and Women -Owned Business Enterprises (M/WBE) The City of Denton does not have a formal M/WBE goals participation program in this project If M/WBE participation is proposed, consultants should identify the proposed firm(s) as such in the project organization section AAA069D4 rm 9- APPENDI K A DESCRIPTION OF UZ H= OPERATIONS CITY OF DENTON, TEXAS General The City of Denton, county seat of Denton County, is the northern gateway to one of Texas' major metropolitan areas Bordering on the Dallas/Fort Worth metroplex, Denton is convenient to major financial and commercial centers as well as major transportation facilities such as the Dallas/Fort Worth Airport and Alliance Airport Denton is home to the University of North Texas and Texas Woman's University The University of North Texas has approximately 25,000 students, and TWU about 8,000 With its access to DFW Airport and Alliance Airport, Denton is home to many of those individuals and businesses serving as support structures, such as marketing, sales, etc Denton has a complement of manufacturing and high tech industry and is a retail and medical center for North Texas Denton Municipal Utilities has reflected the growth of the city and continues to emphasize the strong partnership between the Utility and its citizen -owners who benefit from public power ,� , I Tyol`YY Denton City Council Denton operates under a Councd/Manager form of government This form of government allows citizens to elect their representatives to make policies The City Council oversees the ordinances, and policies of the overall city organization The City Council hires a professional City Manager to oversee the day-to-day management of the City using the policies they have set as guidelines There are seven members on the City Council representing four single -member districts, two at -large districts and a Mayor They are all voting members of the Council Denton Public Utilities Boa The Denton Public Utilities Board is composed of five members appointed by the City Council to serve four year terms The City Manager and the Executive Director of Utilities are ex- officio members of the Board The Board acts as a consulting, advisory and supervisory body to the Department of Utilities The Board has authority and responsibility to study and to recommend policies relating to the organization, including the setting of rates and charges, operations, promotion, enlargement, planning, system expansion, personnel, incurring of indebtedness, issuance of bonds, budget and capital improvement project recommendations AAA049D4 fm -10- City of Denton RFP Utility Department Management Study The Denton Public Utilities Board begins each year with an annual Planning Session in January and, with departmental staff, develops priorities for policy/procedure as they apply to local operations and administration of the utilities and local, regional and statewide regulatory and political issues A "Statement of Policy" is then formulated with this policy functioning as a major guideline for the organization The Annual Planning Session by staff, the Annual Forecast, Annual Financial Report, Capital Improvements Plan and Operating Budget involve considerable exchange of ideas and information between Board, staff and other entities over a period of several months and comprise four of the Board's highest responsibility areas The Department Strategic Plan is revised on an "as needed" basis having a flexibility built in to it sufficient to respond to an ever -changing competitive environment The Board members serve on several committees which include the Vision 21st Century Project for the City, the Chamber of Commerce Economic Development Board, the PLUS I Utility Account Review Committee, the Land Use Development Plan Committee, the TMPA Board of Directors, as well as serving on several National Committees, such as the American Public Power Association's Legislative and Resolutions Committee, their Policy Makers Advisory Council, and the Texas Public Power Association's Legislative and Resolutions Committee The Board also sends an emissary to Washington during critical hearings on issues that directly impact the Utility organization UTILITY ADMINISTRATION The Utility Administration Department is responsible for management of the Electric, Water, Wastewater, and Solid Waste Departments, which includes 26 organizational units, for the City of Denton, Texas. This department provides these services to 70,000+ residents of the City of Denton A few of the responsibility areas of the Utility Administration Department include all utility long-range planning (i e , strategic planning, future water supply, energy supply, etc ) - establishment of the utility capital and operating budgets and utility rates - active participation on several state, regional, county and city committees for future water supply and quality as well as power supply issues - coordinating all activities with the Denton City Council, Denton Public Utilities Board, the City Vision Committee, and other boards and commissions within the city organization The Utility Administration office coordinates and prepares final agenda items for the Public Utilities Board, presentations to the City Council and Planning and Zoning Commission and makes recommendations as appropriate AAA049D6 Po1 City of Denton RFP Utility Department Management Study The Utility Administration office is the contact office for all local, state and federal regulatory agencies dealing with utilities and actively participates in local, state and federal legislative matters Brief outlines of the four major departments and their operating divisions follow THE ELECTRIC SYSTEM The City of Denton has owned and operated its Electric System for approximately 91 years Today, the Electric System serves approximately 31,600 customers. The Electric System consists of 174 MW of gas fired generation, 3 MW of hydro generation, Denton's 21 3% share of the Gibbons Creek coal-fired unit, 11 substations, 16 miles of 69 KV transmission, 303 miles of overhead distribution lines, 204 miles of underground distribution lines, and 33 miles of fiber optic lines The system is operated by 133 employees The 1996 annual system peak was 219 MW and is projected to grow by slightly more than 3% per year for the next five years The fiscal year 1996 MWH sales were 906,099 MWH and are projected to grow by slightly more than 4% for the next five years The fiscal year 1996 average cost per KWH over all customer classes was 6 62 cents/KWH and is not forecast to increase in 1997, except for a projected 1 51 % increase necessary to reflect fuel cost changes Fiscal year 1996 revenues are forecast to be $74,243 million Fiscal year 1997 revenues are forecast to be $77,296 millon The fiscal year 1996 operating expenses are forecast to be approximately $69,500 million The fiscal year 1997 operating budget is $75,225,883 The fiscal year 1997 Capital Improvement budget is $54,566 million Electric Administration The Electric Administration Division provides general supervision for Electric Utility Operations including the functional divisions of Production, Operations/Dispatch, Overhead -Underground Services, Substations, Engineering, Metering, Meter Reading, Customer Information, Demand Management, and Communications Included within the functions of the Administration Division is Operating Budget and Capital Improvement Plan formulation, System Planning and Design, Board and Council Agenda preparation, review and monitoring of rates, system load forecasting and planning, and industrial, commercial, and residential development review Goal modifications to the Electric Department Master Plan include implementing recommendations and results of the Power Supply Study, development of quarterly purchased power and fuel cost adjustment ordinance, computer productivity improvements through linking of computer systems, space requirements and plan for service center, and expansion of electric service into dual -certified service territories Other goals within the Electric Department are detailed within the specific division narratives AAA049D4 fin _l2_ City of Denton RFp Utihty Department Management Study 1, develoment of Assure the availability of needed elst costectric resources to meet customer load through development of cost-effective demand_side lonterm or resources supply coupled with programs Z Maintain competitive rates with adjoining utilities with goal of limning average increase to at or below inflation 3 Provide appropriate financing for major capital Improvements and replacements without incurring excessive levels of debt 4 Select and track financial and performance indicators to measure productivity and financial performance Sup rt ion of ng process and continue to 5 development sto attract new business and retain or expand existing support on economic es 6 Provide employees with proper resourcestraining, environment for effective lob performance and iproved es, Procedures, and work customers productive service to our 7 Monitor and comply with all environmental and safety regulations 8 Create a safe workplace that promotes concern for employee and public safety 9 Identify, develop, and implement programs that meet the service requirements of customers and that achieve external and internal customer satisfaction goals El�od � lion The Electric The Division is responsible for the Ci 's at Spencer Station, Ray Roberts and Lewisville Hydro power generation resources at reflects funding for purchase power requirements supplied by Texas he Mumcbpuadlgpow additionally and Texas Municipal power pool The City's Power generation resources include five natural gas fueled steam -turbine generating units located at Spencer station, All five units are equipped with Combustion Engineering boilers and General Electric turbine generator sets Installed rating for the five steam units totals 174,000 MW The generating resources also include two remotely operated hydro -electric plants at the base of Lewisville and Ray Roberts dams Those Units total 3000 KW in combined capacity and are operated as allowed by lake discharge directed by the US Army Corps of Engineers or Dallas AAA009D4 fin - 13 - City of Denton RFP Utility Department Management Study Water Utilities The units operate primarily unattended with routine operation and maintenance checks totaling a minimum of 16 hours per week In addition to power generation, the division operations staff monitors the electrical distribution system and provides dispatch service to the utility and city services at night and on Sunday Regulatory requirements occupy a large amount of staff time and resources The Continuous Emission Monitoring Systems have been installed on units Four and Five as required by EPA Staff performs all preventative maintenance on the CEM units EPA acceptable electronic data reports must be submitted regularly Responsibilities also include the Pollution Prevention Plan, SPCC and Storm Water Permit OSHA compliance and Title V operation permit compliance are also responsibilities of the electric production Personnel training development are necessary to assure station availability, capability, reliability, efficiency, and to maintain regulatory compliance Craft progression requirements have been established Specific training curriculums have been developed for basic academics and for power plant fundamental Dispatch and Operations The Utility Dispatch and Operations division is responsible for a wide range of activities including, the development and administration of a fully functional operation/dispatch center, coordination of the integration of GIS, SCADA, AVR, CAD, metering devices and other external systems, coordination of the extension of automation functions throughout the transmission, distribution, and substation systems, handling customers' service requests and assisting in the adjustment of system voltages and various levels, documenting outages and substation breaker operations, maintaining plant facility records within GIS, and short and long term planning including system analysis, protective device coordination, contingency analysis, etc Customer calls for electric, water, wastewater, solid waste and animal control are handled by one full time and two 3/4 time Dispatchers The dispatchers handle approximately 14,000 calls per year covering outages, partial power, line locations, sewer back-ups, no water or dirty water, loose animals, and full dumpsters The dispatch function is operated from 7 a m to 11 p m , six days per week with the Power Plant staff operating the dispatch for the remainder The two GIS Technicians are responsible for the upkeep of plant records They maintain 442 coverages containing nine substations serving 48 distribution feeders These feeders are made up of 14,000 poles, 6,000 transformers, 210 air switches and 96 padmount switches, 155 capacitor banks, 35,000 meters plus associated pedestals, pullboxes and other secondary facilities The Technicians verify field changes from service crew job orders and as built drawings received from Engineering AAA049p4 fin 14- City of Denton RFP Utilityi Department Management Study These functions are performed under the direction of the Operations Manager The Operation Manager is also responsible for approving switching orders and issuing clearances, reviewing system data and making recommendations for improvements to the electrical system Electric Distribution The Electric Distribution Division provides new construction, service and maintenance of proposed and existing underground and overhead electrical distribution and transmission systems in the City of Denton This includes new distribution lines, upgrading existing lines to provide increased load capacity, prevention of overloading feeder conductors and service to new customers Other activities performed by this division include a pole inspection treatment/replacement program designed to check poles on a seven-year cycle; a line clearance program based on a three-year cycle, ongoing maintenance programs of installing and replacing squirrel guards, insulated jumpers, replacement of failed direct buried underground cable with a conduct system and the maintenance of exit feeders (All these activities improve the system reliability while maintaining the overall service level to our customers ) The division is divided into groups under three foremen One foreman supervises primarily underground construction and maintenance. The second foreman supervises overhead construction and maintenance Because the workload has shifted to more underground construction, the crews under the second foreman also work underground construction and maintenance The third foreman supervises the service group which also includes street lighting, tree trimming along with crews that respond to customers' service needs This organizational format has proven to be a cost-effective method of operation In 1996, the Electric Distributions' Safety/Training Coordinator was transferred from Electric Distribution to the entire Utility Department The Safety and Training work is now carved out by a part-time Administrative Intern that had been assisting the Safety/Training Coordinator, and an employee temporarily assigned to help in this area This Line Technician was moved from the service area and teamed with the Utility Safety/Traming Coordinator and the part-time Intem to assist in obtaining the goal of becoming the first municipal electric utility in the nation to obtain the Municipal Electric Safety Accreditation To obtain this accreditation, the electric department must demonstrate industry "best practices" regarding all area of regulatory compliance, employee safety, training and teamwork To meet all of the requirements, the overall attention of the Line Technician is required The Engineering Technician II position in the division handles the purchase requisitions, receiving reports, monitors the budget and works closely with the Finance and Purchasing Departments to help resolve any conflicts in materials, budgeting differences and project numbers. The Technician II positron is also responsible for the coordination with the Engineering Department on ongoing projects and helps with monitoring the cost and the performance measures for the Distribution Division Over the past five years, the Distribution Division has undergone a reduction in workforce by not replacing some of the employees that have resigned from their positrons Even with this AAA019D4 M - 15 - City of Denton RFP Utility Department Management Study reduced work force the Division has improved the service level due to the education and training offered and the utilization of the advances in technology in equipment The Distribution Division has continued to train all employees through the Department of Labor registered apprenticeship program This program fulfills all OSHA requirements while providing our Utility Line Technicians with the technical skills needed to operate and maintain our distribution system in a manner that will maximize our competitive posture This division is also dedicated to the continual education of its employees in electrical concepts and theories and in personal safety Electric Substations/Fiber Optics The Substation/Fiber Optic Division is responsible for the operation and maintenance of the city's nine electric substations, four TMPA Interchanges and the fiber optic network The division performs highly technical work in all areas of substation and fiber optic design, operation, and maintenance Major maintenance projects include transformers, breakers, D C control systems, protective relay systems, building maintenance, fiber optic repair and trouble shooting and station ground care Capital Improvements projects include 15 KV breaker conversions from air to vacuum for reliability and lower maintenance cost, 69 KV breaker upgrades from oil to SF6 gas to add more reliability and lower maintenance cost, and fiber optic new installations. With new technology, training and schools are necessary for all substation personnel Each type of equipment has its own operation and maintenance requirements With the emphasis on cost, the rise of new technology in maintenance is substantial The technology requirements are met by updating old test equipment and purchasing new equipment This division is also dedicated to the continual education of its employees in electrical concepts and theories and in personal safety The division is divided into three areas These include maintenance, operations and fiber optics The maintenance group is responsible for all maintenance of nine city owned substations, and the minor maintenance of the four TMPA Interchanges The operations area is responsible for the daily operation of the substations, the SCADA system, which consists of (7) CRT's, (19) RTU's, (800) Transducers and over 105,600 feet of 25 pair control cable, highly technical testing and programming and trouble shooting The fiber optic's area consists of design, maintenance and installation of the fiber optic network Fiber optics is the new technology for the City of Denton This division has installed fiber to nineteen city buildings This number will increase as our fiber network expands with more options The fiber optic network increases the communications inside a department and between different departments AAA049D4 fin -16- City of Denton RFP Utility Department Management Study Electric En nearing The Electric Engineering division's primary responsibility is to provide quality engineering to meet Departmental goals and customer needs in a professional, cost effective and ti system analysis mely manner The primary areas of responsibility include design construction, monitoring, system planning and Under design and construction, staff designs work for implementation by electric distribution division construction crews Designs normally included cost estimates, area mapping, load analysis, conductor selection, protective devices, structure and assembly standards, and field data Review and update specifications for overhead and underground standards and material purchases The goal is to reduce materials inventory and construction costs Under system planning, studies performed are system load forecast, customer problems, load distribution and automation, and life cycle tracking of items of plant a Load forecast predicts future electrical load growth by utilizing economic and trending of historical growth patterns for industrial, commercial and residential customers b Customer problems are handled through a power quality team that represents the divisions of Engineering, Distribution, Substations, Communications and Metering The team performs site visits to customers' facilities for data collection and offer assistance Load distribution to study new and existing loads location and recommend required system modifications Distribution automation provides the means to move effectively towards minimizing outage duration, isolate faults, restore service by system reconfiguration and improve efficiency of personnel and machines used to clear faults Under system analysts, staff performs the following a Response to customer requests b Perform load flow models by utilizing system configuration for electric lines and equipment The model takes into consideration light and heavy load cases c Performs fault analysis to support system devices coordination and equipment ratings d Reduce losses, load distribution, capacitors placement and transformer load management Each Engineer is assisted by a technician and or intern to provide technical assistance in the planning, design and construction, and analysis functional responsibilities Electric Metering The Electric Metering Organization is engaged in the daily operations of providing customers with electric and water service connections, disconnections and customer support operations AAA049D4 fin 17- City of Denton RFP Utility Department Management Study In the and thew ter turn-ons are Pojtected to be approximately 22, 50 toprojected be ever- o approximately 2,400 Provide customers with quality electric service has prompted more g wing need to energy information, demand side management, training in such areas as detection and their effects on the customers business and energy power quality' and harmonic Division c 1996-97 Fiscal Year will test approximately 22,,885�e1 electric meters ortaboth maintenance and meter test program The goal for the 1996-97 Fiscal Year will "target" large commercial and industrial customers for total testing of all metering equipment Funds are commercial and time steal customersnd equipment Continual r "Power Quality" studies and assistance for is a must for the electric metering organizations training m today s high standards of excellence The organization's goal remains steadfast in providing the City of Denton customers with courteous, fast and quality service, presently and in the future The Drvision works to maintain a cost-effective operation for both the customer and the organization without sacrificing quality or safety Meter R ding This Division's eight members are responsible for reading 29,687 electric meters, 3$1 I demand meters and 18,294 water meters, and 50 sewage meters every month, for a total of 618,504 per Year Each Meter Reader is responsible for reading approximately 7,363 meters per month, or 88,356 meters per year The meters are assigned to 21 cycles All 21 cycles must be read and billed each month All meters must be read and be ready to bill in the time frame of a minimum 28 days' reading billing, and no more than a maximum of 32 days per reading/billing The Customers' bills are made up of electric, water, and sewage usage The Solid Waste charges are residential customers, while commercial customers are charged by dumpsflat rated for ter size and number of days they are scheduled for pickup This Division is responsible for maintaining the Reading/Billing Schedule to allow the cash flow of the Utility charges to remain on a consistent basis CVU The Customer Information Division serves the public information function for the utility and oversees the residential energy management programs This division forms partnerships with various groups in Denton such as the school district and civic groups n order to facilitate utility objectives The Communications and Special Projects Coordinator (CBcSPC) also represents the utility department in national and state organizations such as the Texas Municipal Power Association and American Public Power Association The public information role is to educate and inform the public about ut 11ty-related issues, concerns, programs and accomplishments The C&SPC works with the department directors from all four utilities to decide on the topics needing to be targeted for the education programs AAA049D4 fin WE City of Denton RFP Utility Department Management Study The materials used to educate utility customers are advertisements in the local media, news releases, cable TV spots, bill-stuffers, and informational newsletters These materials are written, designed, and produced by this division We are also responsible for the placement of materials with various media and for the evaluation of communication methods used On average, 220 educational materials are produced yearly The division also uses public programs such as presentations and participation in community groups and the school district upon request Community events range from participation in Earth Day to the Chamber of Commerce Expo Last year thirty public programs were completed The division helps plan in-house projects such as Open House, National Drinking Water Week and Public Power Week On average, 1,500 customers are assisted yearly with questions about electric and water conservation, high -bill complaints, and general service and billing problems Residential energy management programs include performing 150 energy audits yearly and working with utility customers and HVAC dealers on the appliance rebate program This division also conducts commercial audits and will be working closely with other divisions on a commercial marketing program. Last year 441 rebate applications were processed The division tracks monthly energy use and cost data for all City facilities and maintains a lending library with current information about building practices, appliance efficiencies, EMF, and other related areas as well as weather and degree day data This division has video production capabilities which is utilized for in-house training programs, advertising and educational materials, and presentations The division also takes on "special projects" for other city departments The division also administers the utility residential energy management programs This function consists of assistmg customer with questions about conservation and efficiency, high -bill complaints, energy audits and the appliance rebate program The division tracks energy use and cost data for all City facilities, maintains a library with current information about building practices, appliance efficiencies, EMF, and other related areas as well as weather and degree day data The division also has graphic and desktop publishing capabilities in order and which are used to produce educational materials, the Utility Citizen Newsletter, and multi -media presentations for the Utility and other Departments THE WATER SYSTEM The Water System provides retail water service to all customers located within the city limits, as well as wholesale water service of approximately 1 1 MGD to the Upper Trinity Regional Water District The water distribution system consists of 295 miles of water mains, 7 million gallons of ground storage in four tanks, and 4 36 million gallons of elevated storage in three AAA049D4 fin 19- City of Denton RFP Utility Department Management Study tanks. The City rs in compliance with all State and Federal water quality requirements and currently rated as a "superior public water system " Wate-- r 4— 'mlv Denton has 4 86 MGD of water rights from Lake Lewisville and 19 76 GD of water rights from Lake Ray Roberts Denton also purchases 500000 to serve" amount to maintain the future options for additional water purchases Denton also gallons per day from Dallas as a "readiness has 2 MGD available from Cooper Reservoir in Fast Texas in partnership with the Upper Trinity Regional Water District Denton maintains and utilizes its groundwater well system (2 5 MGD as a inthe event of an unusual disruption in the water treatment and/or transmission system contingency supply Water A mintcrrn�� Water Administration provides for the direction and general supervision facilities and operations These facilities include water treatmentter distribution metering and repair and laboratory functions Other responsibilities include capital imrovement planning, grant administration, financial and operational reporting, Board and Council apgenda preparations, infrastructure review for development, and liaison with local, state and federal regul authorities and other parties associated with Denton's Water Utility atory The single most important service is to act as the liaison between the Public Utilities Board and the various operating/planning departments thereby translating the Board's policies into functional operations, monitoring the progress of operations, and apprising the Board of such progress Water Department Long -Term Strategies include 1 Continue to own, retain and defend Denton's current water rights and cooperate with the Upper Trinity Regional Water District (UTRWD) in the future raw water requirements, either through participation with UTRWD UTRWD or by the purchase of raw water from 2 Continue to own the community water treatment facilities, and consider wholesale treated water purchases from UTRWD only on an Interim basis prior to phased construction of Plant expansions or new plant construction 3 Offer a minority equity ownership to the UTRWD in the proposed Ray Roberts Water plant on an equal cost basis, or offer long -tern wholesale contracts to the UTRWD rovided Denton customers are not burdened by such wholesale contracts 4 Continue effective and efficient treatment of the community's water achieving regulatory compliance of a "superior" water system rating and all water quality cntena. 5 Continue to recognize and honor contractual interim water supply and long-term water transportation obligations with the UTRWD in water and wastewater projects, while at AAA0/9D4 fin -20- City of Denton RFP Utility Department Management Study the same time, proceeding to momtor quality and supply and demand factors that may influence modifications of these obligations 6 Develop and maintain a water distribution system that balances optimum service provisions with the cost of service Water Engineering The main functions of this Division is data collection, project management, study and system analysis, technical support and mapping Data collection is mainly a function of our field technicians and our interns Project management and study and system analysis are accomplished by staff engineers with assistance from the technicians Staff provides project management services for over $3 4 million of capital improvements for the water utility Technical support is provided by the enure staff Mapping is the main function of the GIS Technician who receives assistance from other staff technicians Design of water/wastewater lines is done by the City's Public Works Engineering Division with review by the Water/Wastewater Engineering staff Most water/wastewater lines funded by the utility are contracted to private firms with inspection services provided by the City's Public Works Inspection group Water Production The Division's primary responsibility is to produce sufficient quantities of safe drinking water to satisfy the community's demands on a continuous basis throughout the year The specific areas of responsibility include raw water supply and transmission, treatment, storage, high service pumping and pressure maintenance (booster pumps and elevated storage) The division is also responsible for the operation and maintenance of the ground water wells, storage tanks and booster pump stations located at the water well sites within the distribution system These systems need to be operated and maintained on a 24 hour per day, 7 days a week basis to insure adequate supply and to preserve and maintain the public health and safety Increased customer demands, an expanding customer base, higher levels of customer expectations, and a rapidly changing State and Federal regulatory environment has dictated that the division be managed, operated and maintained with a much higher level of technical and professional competency than was envisioned five to ten years ago The primary goals of the division which remain the focus for the organization's efforts are as follows 1 Maintain finished water quality at the highest level possible with existing facilities and available resources Meet all State and Federal Standards for finished water quality and exceed these to the maximum extent possible where technologically possible and economically prudent 3 Direct resources and staff effort to improve system reliability and to minimize the potential for service interruption or loss of pressure maintenance within the distribution system AAA04904 fin _2l_ City of Denton RFP Utility Department Management Study 4 Provide continuing education and training opportunities for all employees to promote and encourage continuous self-improvement, upgrade certification levels, and to maintain the public's trust and confidence in the important role entrusted within our division The division requires that all non-clencal staff obtain and maintain certification in surface water treatment from the TNRCC The plant staff is organized into the following functional subgroups Supervisory/Office/Clerical, Plant Operations, Plant Mechanical Maintenance and p Plant Electrical Maintenance Each functional subgrouhas a supervisor who is responsible for achieving the goals and objectives outlined for their area This includes budget responsibilities, assignments staff training and development, resource allocation, manpower deployment and special project Water M t i' rig This organization's primary responsibility is to install new meters and maintain the water meters that service the Denton customers They maintain an accurate system for an equitable distribution of cost to all customers The Division will change out 1,800 water meters in 1996 97 ranging in size from 5/8 x 3/4 inch through 2 inch All water meters are scheduled to be changed every ten years in order to maintain accuracy Old meters are tested when removed from service to evaluate how well they are performing and to determine the best length of service The Division plans on exchanging sixteen (20%) of compound water meters ranging in size from three inch, four inch, and one six inch in 1996-97 The Division has an ongoing testing and repair program on all large water meters Three inch through eight inch water meters are scheduled to be tested and calibrated once each year Field tests are performed on all large meters that indicate any problem Although the Division has used outside repair services in the past, they are now testing and repairing in-house The Division responds to all complaints from our customers and helps them determine the nature of the problem They also assist Customer Service with information regarding any complaints Customer Service depends heavily on this Division to assist them when handling problems and billing disputes Water D ar.ar,.4ri�.. The primary responsibility for Water Distribution is to maintain the continuous flow of water to approximately 16,905 active customers The most critical service is to restore water service to customers where a water main has ruptured, and to provide such restoration as quickly as possible Other services provided by this division include hydrant and valve maintenance, fire flow testing, and water main installation The water distribution system is comprised of approximately 1,716,000 feet of water mains, 10,000 main line valves, 2,400 fire hydrants and 34,000 small valves which serve as control mechanisms for service connections AAA049D4 fin I7 City of Denton RFP UtilityDepartment Management Study THE WASTEWATER SYSTEM The wastewater system provides collection and treatment service to the citizens of Denton, as well as Denton's two wholesale wastewater customers, the Town of Corinth and the Upper Trinity Regional Water District The collection system consists of approximately 344 miles of gravity wastewater lines, 15 miles of force mains, 3,600 manholes and 18 lift stations Wastewater Administration Wastewater Administration provides for the direction and general supervision of all wastewater system facilities and operations These facilities include water reclamation plant, wastewater collection, wastewater engineering, and laboratory functions Other responsibilities include capital improvement planning, grant administration, financial and operational reporting, Board and Council agenda preparations, Utility review of subdivisions and liaison with local, state and federal regulatory authorities and other parties associated with Denton's Wastewater Utility The single most important service is to act as the liaison between the Public Utilities Board and the various operating/planning departments thereby translating the Board's policies into functional operations, monitoring the progress of operations, and apprising the Board of such progress Support the level of participation in regional wastewater system development with the Upper Trinity Regional Water District (UTRWD) that will result in the most cost effective provision of wastewater services to the Denton community 2 Continue to study wastewater treatment plant options, optimize joint participation with the UTRWD, and maintain majority ownership of the wastewater treatment plant with clear rules of management, fiscal responsibility and present and future obligations 3 Continue to eliminate all dry weather system backups and overflows, minimize overflows in high exposure areas during rainfall events and systematically rehabilitate the collection system to prevent infiltration and inflow Develop and maintain a wastewater collection system that balances optimum service provisions with the cost of service 5 Support the beneficial reuse of wastewater blosolids and effluent through programs that develop and maximize the product value to the community 6 Continue to support a responsible level of environmental stewardship and public health protection with policy decisions that minimize the impact of pollution on the environment and the public health of the Denton community Wastewater Treatment Plant This division's primary responsibility is the effective treatment of approximately four billion gallons per year of wastewater and the operation of 19 liftstations. State and Federal permit limitations require consistent effluent quality of 10 mgle BOD, 15 mgle TSS, 3 mgle nh2 AAA049D4 Co - 23 - City of Denton RFP Utility Department Management Study Specific areas of responsibilities requiring 24 hours a day, 365 days per year operation include wastewater treatment and disinfection, liftstation operation and maintenance and biosolid management Stringent State and Federal regulatory requirements necessitate a high degree of technical competency The primary goals of the division which remain the focus for the organization include 1 Produce the best quality effluent at the lowest possible cost 2 Minimize overflows and bypasses of wastewater to the environment through automation and continuous monitoring systems at all lift stations 3 Provide assistance to other divisions to help resolve environmental problems or issues 4 Continue the development of a partnership with the University of North Texas and Texas Woman's University to provide multi -disciplinary approaches to the resolution of local environmental problems. The TNRCC requires that the Water Reclamation Plant be operated by a chief operator with an A Wastewater Certificate and that shift operators have a B Wastewater Certificate The plant is organized into the following functional subgroups Supervisory/Office/Clencal, Water Reclamation Operations and Biosolids Operations Each functional sub -group has a supervisor who is responsible for achieving the goals and objectives outlined for their area Municipal Laboratory/Pretreatment These divisions' primary responsibilities are to provide analytical and environmental support to other divisions within the Department of Utilities The specific areas of responsibility include analytical testing for permit compliance for water reclamation, water production, water distribution, electric production and the Landfill The laboratory also provides analytical testing for Pollution Control and Abatement, Industrial Pretreatment and performs bacteriological testing for public and private water systems The Industrial Pretreatment Program is responsible for the implementation and enforcement of industrial pretreatment regulations, pollution abatement activities, septic system and water well permitting activities, landfill groundwater monitoring issues and to provide other utility divisions assistance with environmental problems and issues The primary goals of these divisions are To provide all analytical testing for the Department of Utilities at a competitive price with private analytical laboratories 2 To maintain compliance with all state and Federal environmental regulations AAA619D4 fin 24 . City of Denton RFP Utility Department Management Study 3 To protect the wastewater system through the effective implementation of the Industrial Pretreatment Program 4 To provide continuing education and training opportunities for all employees Wastewater Collection The primary responsibility for the wastewater collection operation is to maintain the continuous flow of wastewater to the Wastewater Treatment Plant Our single most important function in this organization is to restore wastewater service to customers where service has been interrupted by blockage in the sewer system Other services provided by this division include manhole rehabilitation, collection system maintenance, grease and obstruction removal and wastewater collector construction The wastewater collection system is comprised of approximately 319 miles of gravity/sewer mains, 88,975 feet of force mains, 18 lift stations, 3,600 manholes and 15 major creek crossings Wastewater Engineering Water and Wastewater Engineering consists of two divisions There are two engineers, one manager of construction projects, one technician and one intem in Water Engineering There are three engineers, five technicians and two interns in Wastewater Engineering These Divisions do not operate as separate divisions The Divisions are operated in a matrix fashion, where people are used according to their skills, ability and work load. The organizational chart shows how we report for administrative purposes All employees report directly to the Engineering Administrator, except for two Engineering Technician Its and an Engineering Technician I, who report to an Engineering Technician III The main functions of these Divisions are data collection, project management, study and system analysts, technical support and mapping Data collection is mainly a function of the field technicians and interns Project management and study and system analysis are accomplished by staff engineers with assistance from the technicians The staff will provide project management services for over $4 4 million of capital improvements for the wastewater utility in Fiscal Year 1997 Technical support is provided by the entire staff Mapping is the main function of the GIS Technician with assistance provided by the other technicians. THE DRAINAGE SYSTEM Drainage Operation & Maintenance This organization's primary responsibility is to maintain the storm drainage system The maintenance of the drainage system consists of numerous activities such as weed control through mowing and herbicide application, reshaping and grading of channels, street sweeping, minor concrete repair on lined channels, and responding to customer requests In addition, this AAA049D4 fin - 25 - City of Denton RFP Utility, Department Management Study Division is responsible for closing the flood gates, placing high water barricades on city streets and for mosquito spraying The drainage system consists of approximately 35 miles of open channel, 44,500 feet of concrete lined channel, 28,700 feet of bar ditch and 250,000 feet of underground storm drain system with 1,600 drainage inlets and some 338 culverts and 146 bridges Three quarters of the city streets are curb and gutter streets that require sweeping to prevent buildup of sand and debris in the storm sewer inlets Six flood gates must be closed during heavy rains, plus many streets with inadequate drainage need high water barricades Once the streets are reopened, they must be cleaned of dirt and debris The underground portion of the system is old, deteriorated and designed with sharp angles in many areas The lined channels are overall in average to poor condition with a few areas in desperate need of major repair The earthen channels are in generally poor condition They have eroded over time with most needing reshaping and grading Many of the earthen channels are overgrown with weeds and trees There has been encroachment by adjacent property owners that prevents proper drainage of storm water runoff, inhibits or prohibits maintenance activities, limits access to drainage facilities and prevents the use of equipment in some areas Flooding is minimal in and around the drainage channels when they are not blocked by debris However, there been several documented cases of localized flooding of private buildings and property from inadequately designed drainage in developments THE SOLID WASTE SYSTEM The Solid Waste Department provides solid waste collection, disposal and recycling services to residents and businesses of Denton The Department serves the Denton community in a professional cost effective manner, with a slate of services designed to meet customer expectations and need Solid Waste Administration The Department's Solid Waste Administration Division provides supervision and administrative support for the Department's Divisions, which include Residential and Commercial solid waste collections, disposal, and recycling The Division is also responsible for providing secretarial and clerical support for the Utility Department's Public Information Office The long-term strategies for the Department include Continue to support a city -owned and operated landfill for the Denton community, joint ownership of the landfill facility is not supported at this time AAA049D4 fin -26- City of Denton RFP Utility Department Management Study 2 Offer the use of the expanded landfill site to outside entities as long as the outside entities follow similar recycling policies as Denton's Comply with the guiding principals identified in the Solid Waste Master Plan regarding costs, flexibility, economic development, risk, educational opportunities and environmental stewardship 4 Promote flexibility in recycling facility development in an effort to systematically and cost effectively provide recyclable materials processing to the Denton community 5 Encourage the development of public education programs to influence customer attitudes and disposal habits over the long term Implement the first five years of the Solid Waste Master Plan programs with emphasis on the possible benefits of a pubhc/pnvate partnership 7 Encourage development of commercial recycling activities as a priority recognizing that the largest waste diversion and revenue potential exists with commercial customers 8 Continue with the timely expansion of the existing 36 acre landfill to the 155 acre site adjacent to this existing site 9 Continue city -owned and operated solid waste collection services for both residential and commercial customers with oversight and approval by the Public Utility Board Solid Waste Residential Collection The Residential Collections Division provides for the removal of all solid waste from each residential unit in the City Collection of regular solid waste and unusual accumulations is provided twice weekly while yard waste is collected on Wednesdays only Appliances and large household items are collected within 72 hours of request During a typical year, these department will make over 1 6 million regular solid waste collection pickups, over 800,000 yardwaste collection pickups, almost 1,000 appliance collection pickups, and an average of over 15,000 large household item collection pickups Solid Waste Commercial Collection Commercial Solid Waste provides for the removal of solid waste from all commercial, multi- family, and industrial customers in the City The Division also provides litter collection services along City right-of-ways The Division operates three side load container routes and four front load routes. The Division operates three roll off routes collecting compactors and open tops from approximately 90 permanent customers and several hundred temporary customers each month AAA049D0 fin _27_ City of Denton RFP Utility Department Management Study Although the Division conducts its waste collection activities around the clock, it strives to arrange its collection routes to maximize efficiency while meeting its customers' individual needs For example, the Division is slowly converting its routes to routes requiring front load as opposed to side load vehicles in order to maximize compaction and reduce maintenance costs It also makes every effort to minimize potential adverse collection impacts on an individual business' hours of operation Individual drivers are encouraged to analyze service delivery options and alternatives accruing to individual customers on their routes and to inform their supervisors of opportunities to upsize containers This reduces the number of containers in the field and maximizes route collection tonnages Solid Waste Disposal/Lan 11 The Solid Waste Disposal Division provides for the operation of the Denton Municipal Landfill This Division is responsible for the disposal of all solid waste received from City operated collection systems, contract customers and cash customers as well as the supervision of the City's appliance disposal program and tub grinding operations The landfill's activities are regulated by the Texas Natural Resources Conservation Commission under the guidelines of the Texas Solid Waste Management Act and related state regulations The goal of the division is to provide disposal services in such a way as to minimize turnaround time for users, exclude prohibited materials, compact waste thoroughly to conserve space, and comply with all Texas Natural Resource Conservation Commission rules and regulations Operating hours of the Division are 7 a in - 4 p m , Monday thorough Friday, and 7 a m - 3 p m on Saturdays During FY 1996, the Landfill disposed of over 417,000 cubic yards of solid waste To accommodate the City's plan to expand the landfill in 1998 by conserving space in the existing landfill, the Division adjusted disposal rates to encourage customers with waste generated outside of Denton to use alternative disposal facilities The division also manages the Department's rental properties Solid Waste Remling The Recycling Division was created in 1994 to administer and operate the City's recycling programs and to properly identify the costs and revenue of existing and proposed recycling activities. The Division's programs consist of four multi-matenals public drop off sites, thirteen public newspaper drop off sites, the collection of office paper from municipal facilities, the school district, and Horizon Management and MHMR, the weekly curbside collection of yard waste for the Reclamation Plant's centralized composting, six used oil and oil filter public drop off sites, commercial cardboard collections from both dumpster and compactor customers, and the Cable Swap program. AAA049D4 fin - 28 - City of Denton RFP Utility Department Management Study The Recycling Coordinator's activities include the overall administration and management of the Division's programs. Primarily, this includes the planning and execution of expanded recycling services, negotiating commodity prices with vendors, maximizing the programs' publicity in the Denton community, insuring the timely collection and maintenance of the Division's public drop off sites and regular recycling collection routes, soliciting residential and business participation in recycling programs, providing a full range of recycling related information to the community, and maintaining recycling databases regarding collection tonnages, costs, and revenues h ♦ _: �_1 1��_ 4._:_ M g Financial Administration is primarily responsible for the coordination, analysis, planning, preparation, reporting and documentation of financial related activities in the Utility Department It also provides supervision of the Electric Customer Information Division, which supports the entire utility in the area of public information and education The Financial Administration function is directly responsible to the Executive Director of Utilities, but is not organized as a separate division for funding purposes Financial Administration personnel and activities are funded primarily by Electric, Water and Wastewater administration divisions The financial group consists of one utility Financial Administrator, one Utility Rates Administrator, one Financial Analyst, one Administrative Assistant, one Computer Analyst, and one Administrative Intern Three are funded by Electric, two by Wastewater and one by Water Funding special activities (travel, training, etc ) normally depends upon the utility receiving the primary support Major coordination responsibilities include such financial projects as the Five Year Capital Improvements Plan, and annual Operating Budget, which cover all Electric, Water, Wastewater, Solid Waste Departments plus all of Fleet Services except the Motor Pool Financial Administration is heavily involved in overall financial planning and prepares the five year financial pro forma that supports decisions on long-range financial strategies and goals This group also provides the primary utility coordination with other city offices involved in financial activities, including accounting, finance, customer service, information services, economic development, etc In addition, the group provides general financial assistance to personnel at all levels of the utility organization Financial analysts activities include both recurring and ad hoc programs and projects The Rates Administrator is responsible for conducting periodic utility rate cost of service and rate design studies for four utilities Utility rates are designed to accommodate individual retail customer classes, separate and unique wholesale contracts, competitive environments, and other special situations Many other rate analyses or rate comparison projects or tasks are accomplished to support city, utility and customer needs on a recumng basis Special analyses are prepared in support of such long range activities as the Solid Waste Master Plan, volume and revenue AAA04904 fm _2q_ City of Denton RFP Utility Department Management Study forecasts, financial impact of various funding options, costs of new plant construction, debt costs, financial ratios, etc The Financial Analyst position provides overall support in the areas of financial analysis and reporting This includes analysis and preparation of monthly commodity volume, revenue, expense and net income performance reports for senior utility management and Public Utilities Board Frequent rate analyses are prepared for the Economic Development office to support city efforts to attract new businesses to Denton, and to assist the customer and utility with billing data or rate options Analysis and review support is provided to insure quality financial documents such as the CIP and operating budget Administrative support is also provided for Water, Wastewater and Drainage The Administrative Assistant position provides general financial and administrative support with primary emphasis on Electric activities A major task involves CIP and operating budget software development, training, assistance and documentation This position provides financial and administrative support to Electric personnel in preparing budget documents under both FERC and object code formats, as well as assistance with current year revenue and expense issue Other major tasks include maintaining a detailed ECA/Supply Side database, documenting Electric off -system sales and revenues, and performing basic analysis of budget and actual revenues and expenses, plus review of the accuracy of financial reports The Administrative Assistant also provides general administrative support to the Electric Department The Computer Analyst position provides general assistance in support of financial and administrative programs, with emphasis on computer software applications Examples include design of CIP and budget summary documents, preparation of graphs and charts for the Annual Report or Public Utility Board presentations, and documentation of various financial activities This position also provides basic assistance to utility personnel on software used for development of the CIP, budget, vehicle plan, etc The Intern position, located in Electric Administration, is used to assist in the accomplishment or documentation of various financial or administrative activities It is often used to support special requirements or projects that occur throughout the utility FLEET SERVICES Parts & Fuel Division Parts and Fuel Division is responsible for administering a $100,000 voluminous inventory to the Vehicle Maintenance Divisions This division, working synergistically with the Vehicle Maintenance Division, affects turn -around repair time for customers by promptly locating and retrieving parts Frequently -used parts for the city's broad range of vehicle and fuel types are stocked Specialty items are located and acquired within one hour or less, or within a maximum of one day Our customer's cost for these parts is 15% to 45% below industry standard rates This organization manages the Service Center fuel facility which dispenses propane, gasoline and diesel for city and span vehicles AAA049D4 fin -30- City of Denton RFP Utility Department Management Study For FY-95, 520,775 gallons of fuel were sold 334,338 gasoline, 170,293 diesel and 16,144 propane; revenues were $505,000 This year it is proposed to increase fuel by $ 06 per gallon to help generate revenues for the scheduled 20-year payback of a new Vehicle Maintenance Facility Based on FY 95's 520,775 gallons of fuel sold, the increase would generate $31,250 per year The revised per -gallon price is averaged yearly at less than $1 00 per gallon and remains at an estimated 10% below industry -standard rates For FY 97, divisions have been instructed to budget $1 05 per gallon of fuel Projected FY 96- 97 revenues from city sales is $526,402 and $80,000 from Span sales Span's usage has increased with the addition of two 38-passenger buses received in FY 96 These buses were purchased by the City of Denton with funding from a Public Transportation Federal Grant and will be maintained by Span Additional buses may be added in the future These buses will be included on the Equipment Management Inventory System monthly which is sent to Span and itemizes each vehicles' fuel consumption and charges The City's fuel consumption is combined with their vehicle repairs onto a monthly departmental report sent to each departmental supervisor The organizational structure is comprised of two office clerical and two service maintenance employees. The Fleet Superintendent oversees the organization but is not funded through the Parts and Fuel Budget AAA049D6 fin - 31 - City of Denton RFP Utility Department Management Study INTBtNAF/ONAL ACCOUN7V4G FIRM Arthur Anders a Compaq "i Maw Street, State 5600 Dallas, TX 75M (214) 741. M Casper & Lybrand 1999 Bryn Sheet Dalbd, TX 75MI (214) 754-SM Ddodk • To the TausCannamw Tars 22M Raw Aseaae State 16" Dallas, TX 73MI (214) 777-7000 RPM red Muwiet 200 Creme" Cozrt State 306 DaWs, TX 75201 (214) 75440N 2001 Ras Asewoe Dalles, TX 7=1 (214) 754 M Resat a YeEN 2121 Sea Jsdab Sheet Shcs SN DWbm6 TX 75201 (214) 904M r Block & VON" 57U LBJ Freeway Suite 300 Dallas, TX 751M (214) 770-1500 JPP Dtshtltaelsn List for Coy of DasieWs WRY D*w6ms momemma Salo Camp Dnww & McKee 12770 Cat Road Stab 800 Dallas, TX 75251 (214) 308-"00 Carol HHI. 5339 Alpha Road State 306 Dallas, TX 757M (214) 900d179 R.W. Baer & Astsdais, lea 2101 Fourth Avenue Sate 60 Seattle, WA 98121 (246) 441-7500 ADOr77ONAL FIRMS Rawk garirenumel Casubiq Camp, bc. 610 Fahview Toren Stab fig Cbwbtie, NC 28210 (7" 556-1936 Tbsdse Rsny & Aa ddo 515 Saab rquer" Street some 1500 Las Am" CA 9N71 (213) 6094770 CRRRA! 2" War Madison Sheet So %3144 Chicam H. SUN (312)263-7VS Stun! Wdsds Msasprat Attn: Richard Kucduwdo One,PWta Plan 250 West 34th Street New York, NY 10119 (212) 290-71" Baiwt & Chawberti, hsa 1s" Harrison Street 18th Floor Oakland, CA 94612 (510) M7300 IF , vab+ Cmde.r, Ltd. 29 Hilknd Road Maud Vas, NY 10552 (914 W-U4 Richard Metzler a Ands 4" Skalds Baderard Northbrook, H. 60062 (Un 291-1414 Sdbmmdw & CaaapasD 10N Ykisz Way Sstb 30 Awn Arbor, MI 48148 013) 91841110 Mures, Msidbtsm Has 3W Tons Cokstsoe Taws 22N Res Ares e DaNw TX 7091 (214) 220'm Dodd M. taY & (DM4) & AsseWs IJoW LIM ltWst- Rand, sow 4N W Ddk4 TX TAN (214 4904M Plelksiorkd Seslone crew 00 LMlOR)ss2 !vat Pssbanq, Seib 2 Hwssi.. 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EXHIBIT 1 IW- 2001 CAPITAL IMPROVEMENT SUMMARY TOTAL DENTON MUNICIPAL UTILITIES BONO CURRENT AI0.1N FUND REVENUE CON8TR OTHER cs x,000� ELECTRIC DEPARTMENT 97 $6,521 98 32,989 99 4,840 00 5,311 01 5,095 554 558 1,osw 1,90 so47w 1,150 ss,% 1,150 e73w 1,800 934% 1,600 �- S7,4t5 2e,2w 4,503 $81% 1s4aw 31,788 s7e,w ,s4ew 3,449 73ew z,4ew 21400 3,852 7 - -3-��2 7V37% 548,Sol 73 70 41 33 43 s2eo xeaw 2e02w 1577% 1zsow ,seew $O 0 0 0 0 ao oaow o00w 000% 000w 000% 97 54,090 98 81207 99 4,805 00 4,552 01 8,428 528,082 14sew 2,669 2o22w 6,888 n „w 3 58b 1e21% 3,470 az eew 5.3177 521,888 WATER DEPARTMENT 1231% 1,327 2Ln% 3074w 1 �� s4 e0w ,s 44w 1,125 1e 32w Isom 960 ,am% 24 e,wa 975 107ew� $5,822 94 104 115 122 $571 u4ew a 2,w 20 ,4w 21 v% 23 esw $O 0 0 0 0 $0 000% o ao 000% 000% 0 o0w 97 $4,858 98 6,026 99 8,443 00 7A45 01 2,031 � $29,203 ,sa4w 3,523ASTEWATER DEPARTMENT 20O% 5,090 u43w i'286 206% us,% 7,015 3ow 378 ,41ew eo 2eesw 6,173 27� 1,8 22o,w s oew 1,622 2aeow 890 3 o2w 1,091 7 42w 522,691 $6,262 50 50 50 50 50 $250 20Dow z000w 2000% 20 sow 20 oow $0 0 0 0 0 $O 0Dow 000w 000% 000% 000% 97 $5,380 98 2,870 99 988 00 2,488 Ot 547 $12,279 10000% SOLID WASTE DEPARTMENT 43 sew $4,978 4e 37% $335 17 "% 2a27w 52,412 z3 uw 5488 23 aow s sow $700 a sow $288 , s oew 202ew $2,200 213sw $288 ,soew 4 4ew o oow 5647 st eew $10,288 $1,916 100am $ $0 SO $O $O 0 $76 /ao00w 000% 000% 000% 000% $O 0 0 0 0 ao 000 000% 000% 000w o om FLEET SERVICES / OTHER DEPARTMENT 97 $1,027 es em 0 000% 27 3e 4ew 98 31 2 eew 0 000% 0 98 5 0 47w 31 4, uw 0 O 0 00w S e 7m 0 00 3 o n% 0 000% Ot 3 4 osw 0 8 0 74% 0 000% $� 100 so- $7a ,00 000w 3G 0 Dow 1,000 0 oow 0 000% 0 000% 0 0 009` 0 $1,000 ,00 00% o ao 000% 000% 0 oow UT $125,194 5/10/961348 $02,113 F9 $60.925 $1,158 $1,000 O't!�pp�� ^GN�npfc+�faOo�NOO�Oc� p V �NOlT �f aD t'�NR c�COt�iI��N�O a� �O1��4'fOO1NNt00l0O'7�O��OC+f� Z T T Q ddC W o ao T m ao 0 0 0 ozw wa W; a, " :,� —o�x a V w W�W tI1 (ag =y 1y59 —9CC W w N < yrZ RW p >W W daO 1 a°1 °Cm 9� < may§O ci p n293 � Q Qy�y 2W2p� �• WW;Z w QWyyy�WV52W'MWN maic m m m T N Oi � Ip t0 I� aD Of O T N C9 � Ifi tp I� m O T T T T T T T T T T (9 23 5 <Z J H O T Z Q J a. CO � Z W 2 W > O cr. a. � J � � Q U < &§&k§2§/k����■■ p mL6c� e §2OOM8§29CmeOo _ A2§m/§2§7220�_�0 � @00=00 _ © § 22k2§CY§IW CY ^ ^2§§CR COW) � cri ��§ § a ci § k k $ ■ q § � ILIL � k Lou � � Co �� zz���w IL C willa � 5 maa8Z���� 20 W w oo� 2■ w 1.- 2 Ica Bk< s§§§ Im n- WIC$ z k§o\§gk1 §ui ��■i aQ_w 2 2 LL 8Lu I-L 2 LL E ■3�SwWo■¥! §\§� a. zcc LU mz §§:3 §z « < »40E- O 40 N W N Q /NN�N^Nr1N��l/pN� N N N W y�i ZN N wm m LC yNyNNNN�NN O w pgp Np V CL x N y CO)RE co �3 F� ico or co9) W WOOH ��cc2 a2w (� Z _al a CD @W G W N Ram a � C) UJ x a CC LL Q U U O F- aooao�c4 Ila I�NOtp00 IIQ !R $Occ�00 � Q $ N O l7 O O I N O V R O W Z Z 0 W S W a w a2> �$ W}a o�oo� CO W Z W � Z-j I-- • gg Q z w < Z UTILITIES 10/02/96 EXPENDITURE SUMMARY 1002AM 1996-97 Electric Department $68 129,065 $73,533 272 $72.442,623 $75 225 883 Water Department 13 505,652 14 649 119 14 414 737 15 021 382 Wastewater Department 9,033,427 10,396 sat 10.356,427 10 343 596 Solid Waste Department 5.272,306 6 638,776 6,128 695 7 100 938 Subtotal Utilities 95,09,]¢$ 105217.04a 103,342,482 107,691.799 Fleet Services Department 2,073,330 2 412 836 2 410 837 2440.622 Drainage (Water Department) 354,117 400,322 365,063 499,707 Total Utility Expenses $95.039,449 $106,217,048 $103342482 $107691,799 With Fleet Services 8 Drainage S98,366,902 $100,030,200 $106,118,382 $110,832,128 UTILITIES EXPENDITURES BY CLASSIFICATION 1996-97 m= 1994.05 AOTUAL 1995.96 BUDGET 1996.96 ESTIMATE I SM97 TOTAL Personal Services 11,759,048 13,208,177 12 835,475 14 102 285 Supplies 1917750 2143,599 2104,155 2194244 Purchase Power 47 80,708 50 416,713 50,718,814 48 296 024 Maintenance 3,686,985 4 231,884 3 867,638 4 SW 985 Services 5,671,796 7,343,012 7,396,131 6,169,396 Admit Transfer • 1 134.195 106,540 100,540 38 630 Insurance 189,809 183,716 183,127 189,741 Sundry 1.060,267 1242,500 663,050 738 000 Lard 0 20,000 0 0 Fixed Assets 5,613,700 6778,971 6,036.707 7 280 016 Subtotal Budget Expenses ZZ22226o 83 ffT7- 83,919.e97 83,542,311 Mecallanean / xxxM TraroMr Expenses 18,017.190 19,539,957 19,426,785 24 049 488 Total Utility Expenses S95 939,449 $106,217.049 $103,342 482 $107 691 799 PERSONNEL 1994-95 ACTUAL 1996.96 1995-M BUDGET ESTIMATE 19W97 TOTAL Service/Maimenance 10400 10300 10400 10500 OSbe/Clencal 1900 2050 21 00 2075 Technical/Paraprofessional 12850 13350 13750 13750 Professional 2600 2900 2860 3000 Management/Supervision 4075 3899 3799 3879 Temporary/Seasonal 1718 1691 1591 1641 TOTAL PERSONNEL 33541 341 90 34500 34845 ELECTRIC EXPENDITU9ES BY CLASSIFICATION 1996-97 10/02W 1002AM Expenses 1994-95 ACTUAL 1996.96 BUDOET 1995.96 ESTIMATF 199&97 TOTAL Personal Services $5 648 552 lib 306,903 $0.255 740 $6,698 472 Supplies 887364 881820 931,107 875277 Purchase Power 46 928 138 49 366 100 49 664,460 47 196 020 Maintenance 1,734,919 2 249 851 180,072 2 057 258 Services 1 130,103 1 591 908 2 044 075 3 8M 688 Insurance 123,823 117 197 116 606 126 676 Sundry 918,174 1100000 523.550 568000 Fixed Assets 2,271.470 3,607 7" 2,993,803 4038,616 Subtotal Electric Budget Expenses 59 642 w 65 3031" = 65,443-9115 Transfers Total Electric Expenses ,128,0e5 $73,533,273 $72 442 923 $75,225,883 PERSONNEL 1994.95 ACTUAL 1996.96 BUDGET 19wee ESTIMATE 1996.97 TOTAL ServicalMeintemnce 1200 1200 1200 1300 Office/clerical 700 900 1000 1025 TechnicaYPeregd 8400 8400 8600 8500 Professional 1400 1500 1560 1500 Mgl/SupeMalon 2025 2000 2000 2000 Temporary/Seasonal 6.50 6.00 4.50 6.00 TOTAL PERSONNEL 14375 14600 14810 14925 ELECTRIC EXPENDITURE SUMMARY 10/02196 1996-97 10 02 AM 1994-95 ACTUAL 1995.98 BUDGET 1995.98 ESTIMATE 1996-97 TOTAL Production 50,425 419 53,075,366 53,024.653 51 723,613 Dispatch 8 Operations 0 79 370 161,584 365 571 Distribution 5740,393 6 847 650 6 249 125 7 142 947 Substations 700 805 928 803 976 128 1 140 513 Engineering 586 254 642 065 585 810 462 337 Metering 791,829 972 408 968,065 1 023 687 Metering Reading 290,859 317 167 315,404 331,925 Customer Information 16Q446 224 997 256,158 297.326 Demand Side Management 299,722 370,748 239,289 0 Customer Accounts 1,102,826 1 071 396 1 037 550 1048,142 Administration 7668,433 8,411 936 8,306,410 11 249.176 Communication 361278 591.375 323,427 440,646 Total Electric Expendlhires 68,128,065 73533272 72,442,823 75225883 WATER EXPENDITURES BY CLASSIFICATION I9W97 10/02M UTILITY FUNDED 1002AM Examinee 1994.96 ACTUAL 1995.96 BUWFT 1905.96 FSTIMATF 1996.97 TOTAL Personal Services 82,061,836 S2 362 727 $2 200,160 $2 434.131 Supplies 545,272 623,964 638 769 655 297 Purchase Power 512 133 641,613 641,613 669,822 Maintenance 867 036 922 551 962 874 1 451 155 Services 3,360402 3,748.046 3667395 634,484 Insurance 17 515 16 893 18,893 17 472 Sundry 2 908 22 500 22 500 23 000 Land 0 0 0 0 Fixed Assets 1 637 801 1550,306 1 517 924 1370,700 Subtotal Water Budget Expenses Miscellaneous / 0450M 4 510 949 4,752,529 4 754 600 7,765,321 TOTALEXPENSES $13,505,652 $14649,119 $14414737 $15,021382 PERSONNEL 1994.95 ACTUAL 1995.96 BUDGET 1995.98 ESTIMATE 1 OW97 TOTAL Service/Maintenance 2500 2500 2500 2500 Office/Clerical Boo 450 400 400 TechnlcaYParaprofeseionel 2050 2150 2150 2150 Professorial 200 400 300 400 Manegement/Supervlebn 900 833 833 773 Temporary/Seasonal 2 98 246 296 240 TOTAL PERSONNEL 6648 6579 6479 6469 WATER DEPARTMENT 10/02M EXPENDITURE SUMMARY 1002AM 1996-97 DIVISIONS 1994.95 ACTUAL 199E-9s BUDGET 1998.9e ESTIMATE 19W97 TOTAL Water Administration $209 680 $332 391 $330,661 $350,010 Water Production 4 931 604 5 432 4" 5 371 557 2 971 650 Water Distribution 2,989,808 3,027584 2,973,201 2580,132 Water Meter Repair 495.997 551 620 525,982 632,221 Water Engineering 183 074 336 772 249 551 301 002 Water Laboratory 184,542 215,779 209 166 221 047 Subtotal Water Budget Expenses a.994-703 2ARLM 9,660,128 Z259A52 Miscellaneous / 0460M 4.510,949 4,752,520 4 754 909 7765,321 Total Water Expenses 13,505,652 14,649,119 14,414,737 15,021,382 Drainage (Gen GovL Funded) 354,117 400.322 365,003 409707 TOTAL WITH GG EXPENDITURES $13,869,769 $15,049,441 $14.779.800 $15,521,009 WASTEWATER EXPENDITURES BY CLASSIFICATION 1996-97 10/02r96 1002AM EXPENSES _ 1994.95 &MAL 1995.95 BUDGET 1996.96 ESTIMATE 1996.97 TOTAL Personal Services $2,122,046 62 393 668 $2,362,170 $2 707.456 Suppim 217 163 255 300 264 423 267 215 Purchase Power 429,437 409,000 422 733 430,182 Maintenance 399 810 431 SW 447.942 474 320 Services 501,244 768 643 770 361 734 641 Insurance 22,409 25,406 25,406 26113 Sundry 79 16,700 16,500 16 700 Land 0 20,000 0 0 Fixed Assets 1 376 598 1344,325 1.341,704 1,459,800 Subtotal Wastewater Budget Expenses 5,068, 66 5,669,152 5,851,238 6_116.427 Miscellaneous /0451M 3,964,541 4,730,729 4,705,188 4,227,169 TOTAL EXPENSES $9,033,427 $10,395,881 $10,31141,427 $10,343,696 PERSONNEL 1994-95 ACTUAL 1996.96 BUDGET 19mes ESTIMATE 19M97 TOTAL ServiceiMaintenance 2000 1900 1900 1900 OfficdClerical 200 200 200 150 TechnicsiWaraprolesslonal 2200 2600 2600 2700 Professional 800 Soo 800 900 Management/Supervision 500 433 433 573 Temporary/Seailonal 520 520 520 520 6220 6453 6453 6743 WASTEWATER DEPARTMENT 10/02/96 EXPENDITURE SUMMARY 10 02 AM 1996-91 DIVISIONS 1994-95 ACTUAL 1995-96 BUDGET 1995.98 ES71 ATE 19116.97 TOTAL Wastewater Administration 220 582 279 322 280,189 331 017 Water Reclamation Plant 2 008 354 2,252,992 2,291 453 2598.480 Wastewater Collection 1915,759 1989,659 1,973,789 2 048 581 Wastewater Engineering 420.619 480.325 443.050 489286 Wastewater Laboratory 268 201 352 610 346 854 310 6H Industral Pretreatmern 235 270 310 244 315 924 337 819 Subtotal Wastewater Budget Expenses 5-068-755 5.6B5.152 LIIEL13111 8.116.427 Miscellanom/0451M 3,964,641 4730729 4,706,186 4,227,169 TOTAL EXPENDITURES $9,033,426 $10 396 881 $10,368,427 $10 343 596 - SOLID WASTE DEPARTMENT EXPENDITURES BY CLASSIFICATION 1996-97 1994.95 199&96 199&9e ACTUAL BUDGET E871MATE 10✓1em 09 59 AM 1998.97 TOTA Personal Services $1 938,614 $2 142,869 $2 017,406 S2,262 226 Supplies 287951 382,725 269.856 396455 Maintenance 684 220 627 572 628 750 653,252 Services 680 047 1 234 415 913,5W 916 505 Admin Transfer • Lease 134195 108 540 108 540 38,630 Insurance 26,062 22 220 22 220 19 480 Sundry 159,106 103,300 100 500 130.300 Fixed Assets 328 031 190 596 185,336 410 900 Subtatsl Solid Waste Budget Expenses 4.218"228 4.912"n27 4.244.1117 U25" Miscellaneous /080M 1,056,079 1.826749 1884,5e9 2.275,100 TOTAL EXPENSES $6,272 305 $8163e 776 $6,128,80 $7,100,939 PERSONNEL. 1904.96 ACTUAL 199&9s 19w9e BUDGET ESTIMATE 1996.97 TOTAL Servlc&Mainten9nce 4700 4700 4800 4800 OfSceclerlcal 400 500 500 Soo TechricsIlPers�ofepbnsl 200 200 400 400 Professional 200 200 200 200 ManagwnenVSUpwvWm 650 633 533 533 Tempon"moss" 2.50 3.25 3.2E 2.75 TOTAL PERSONNEL 6400 65 Se 87 58 6708 SOLID WASTE DEPARTMENT EXPENDITURE SUMMARY 10/02/96 1998-97 10 02 AM 1994.96 ACTUAL 1995.96 BUDGET 1995.06 ESTIMATE 199"7 TOTe Administration /OB00 175,958 256,928 231,121 274,240 Solid Waste Residential/0801 1158,979 1371330 1,091785 1277NO Solid Waste Commerolel/0802 1528.710 1.590,547 1,501215 1.770.744 Solid Waste LendN / 0503 890 527 1 051 960 1,001 508 1039.475 Recycling / 0804 462 054 541 254 418 477 457,491 Subtotal Solid Waste Budget Expenses 4.2.18.22a 4,512pu 4.244.1oa 4.825= Mbce9aneous/080M 1,056,079 1826,749 1,884.586 2,275,100 TOTAL EXPENDITURES 5,272,30E 6,8W,776 6129894 7.100,930 FLEET SERVICES / MACHINE SHOP DEPARTMENT EXPENDITURES BY CLASSIFICATION 1996-97 10/18i90 08 59 AM 1994.95 1995.96 199&98 199&97 Elsoansea ACT 1At S ngr-7 FSTIMATF TOTAL Personal Services Suppues Maintenance Services Insurance Sundry Sublet RepWm Debt Service Fixed AssM AdminNtrobve Trarefer Inventory Purchases TOTALEXPENSES $567,519 $502,158 $578,216 $484,462 15 631 21 825 19 425 17 325 27,453 33 810 29.425 17 400 41,048 88 759 55 M 52,770 1201 1201 1201 1200 0 2.000 2.000 2000 0 0 0 0 0 15 475 15,475 95 475 20,555 35,600 25,500 32,500 8 5M 8 500 0 0 1,393,430 1,627 500 1672,500 1,727,500 $2,073.336 $2,412,838 $2.410,837 $2,440,822 PERSONNEL 1994.95 ACTUAL 1995 98 199&95 RuDOE7 ESTIMATIE 199&97 TOTAL serAcauawftrwoo 200 200 200 200 OMcelClericel 3 00 200 200 200 TechnlcallParggirclowildrial 13 00 1300 1300 900 Profassi" 000 000 000 000 ManapemerOuperWsicn 100 100 100 100 TOMPorwyts"mxw 0.00 0.00 0.00 .00 0 1900 18 00 18 00 1400 FLEET SERVICES / MACHINE SHOP DEPARTMENT EXPENDITURE SUMMARY 10/02/98 19W97 10 02 AM 199498 1998-08 199596 1998.97 ACTUAL BUDGET ESTIMATE TOT OARAOE/0880 $619,825 $997,827 $917 880 $1 034 922 MACHINE SHOP/0881 191 268 238 891 206 828 0 PARTS 3 FUEL/0883 1 062 243 1 179 320 1280,301 1405700 073.330 $2,412 ON $2,410.837 $2.440 822 Exhibit B City of Denton, Texas Utility Department Management Study Scope of Services Phase 1 - General Management Review The purpose of this phase is to review functional areas related to the general management and business environment of the Owner's Utility Department ("Department") and to identify any significant areas of improvement which could enhance the effectiveness, competitive position, and efficiency of the Department The functional areas and the scope of their review are as follows • Governance review will consider the Council, Public Utility Board, and management structure as outlined in the charter and analyze actual practice for compliance and effectiveness • Organization structure review will consider the present business service structure effectiveness versus other possible organizational structures such as operational function Various operational units and their relationship in the overall Department organization structure will also be included It will also examine span of control and the size of various work units, especially field service crews • Financial practices review will examine the financial condition, strength, appropriate ratios, debts, assets, and general practices of the financial issues of each utility • Development practices review will examine the City and Department overall development policies that affect the finances, planning and operations of each utility • Support services review will examine various support services provided by the Owner's general government departments in the provision of utility 1 services This review will include utility billing, customer service, accounting, purchasing, warehousing, legal, information services, human resources, risk management, finance, treasury, utility engineering, and inspection • Franchise and payment in lieu of taxes review will examine the practices in Denton as compared to other similar cities and the comparative impact on utility rates and services • Communications review will examine the general communications, formal and informal, necessary for the internal functionamg of the Department, other City departments and governance structures in the process of intelligence gathering, decision making, directing, controlling, monitoring and informing the staff involved in providing utility services Public relations review will examine the formal and informal public relations programs and mediums for effectively informing and coordinating with customers • Planning review will examine the processes of strategic planning, capital improvement planning, financial planning and strategic rate planning This review will examine the processes for appropriate public, governance and staff input, analysis process, decision making plan approval and implementation • Budgeting review will examine the process of budget development, approval, implementation and monitoring This will include the capital and operating budget processes Rate development and administration review will examine the process of developing, implementing and administering rates for electric, water, wastewater and solid waste utility services This review will provide a cursory review of the market sensitivity and flexibility of the Owner's rates and comparability of the Owner's rates with other similar communities in the area 2 Task 1.0 Conduct Project Orientation and Planning Meeting An orientation session will be conducted with the Management Study Oversite Committee and senior City management to ensure a clear understanding of the objectives of the project Specific subjects and actions to be addressed and taken during the session include the following • Roles of City and Consultant representatives during the study • Major goals and objectives of the study • Overview of project methods and work plan • Review and refinement of project schedule and deliverables • Initial data request list Task 1.1 Interview External Stakeholders • Select external stakeholders who have an opportunity to deal with the Department during the course of business, who influence the business environment in which the Department currently operates, or who the Department desires to have a closer relationship with in the future Such stakeholders could include Public Utility board members, City Council members, City agencies that provide support services to the Department, wholesale service customers, large industrial customers, newspaper representatives, and suppliers Final selection will be conducted in collaboration with the Department's Project Manager and the Management Study Oversite Committee • Develop list of base questions as a guide for the external and internal stakeholder interviews in collaboration with the Department's Project Manager and the Management Study Oversite Committee Interview up to 20 external stakeholders in order to ascertain the perceived strengths, weaknesses, opportunities, and threats of the Department All interviews with the elected officials and appointed Public Utility board members will be led by the Consultant's Project Manager and/or Partner - in -Charge Other interviews may be conducted by members of the 3 Consultant's team most familiar with the specialty area important to the stakeholder • Provide written summary of interview results to Department's Project Manager and the Management Study Oversite Committee Task 1.2 Conduct Internal Department Stakeholder Interviews • Select internal Department stakeholders that represent a cross-section of management and supervisory personnel Final selection will be conducted in collaboration with Department's Project Manager and the Management Study Oversite Committee • Interview up to 20 internal Department stakeholders in order to ascertain the perceived strengths, weaknesses, opportunities, and threats of the Department Interviews may be conducted by members of the Consultant's core team members most familiar with the specialty area important to the stakeholder Ascertain the perceived strengths, weaknesses, opportunities, and threats of the Department and to assess the perceived effectiveness of the Department in the functional areas identified above from these interviews • Determine current performance measures and potential benchmarkmg parameters for significant cost centers related to the individual divisions of the Department from these interviews • Provide written summary of interview results to Department's Project Manager and the Management Study Oversite Committee Task 1.3 Conduct Other City Agencies Interviews • Select representatives of the City's Economic Development, Engineering, and Financial Services agencies which provide service to the Utility Department Final selection will be conducted in collaboration with 0 Department's Project Manager and the Management Study Oversite Committee • Interview up to five representatives of other City agencies in order to ascertain the perceived strengths, weaknesses, opportunities, and threats of the Department Interviews may be conducted by members of the Consultant's core team members most familiar with the specialty area important to the stakeholder • Gather additional information from these interviews regarding daily Department activities and interactions, performance measures, and the eleven functional areas described above • Provide written summary of interview results to Department's Project Manager and the Management Study Oversite Committee Task 1.4 Conduct Management Workshop. This workshop will be facilitated by the Consultant and should be attended by the Management Study Oversite Committee, Department senior management and key division heads The following items will be discussed • Results of external stakeholder interviews • Current status of Department and business environment • Internal stakeholders perceived strengths, weaknesses, opportunities and threats of the Department • Department mission statement, goals, objectives and strategies • Department's ability to control internal factors of price, product, marketing and sales • Department's ability to recognize impact of external factors 5 • General management functional review areas Task 15 Perform Intense Functional Area Review and Evaluation Analyze, for each functional areas identified above, whether the current practices and policies address the following parameters effectively and efficiently from an overall Department perspective - Support the City's Vision - Support the Department's Mission Statement - Promote a customer based and focused operation - Provide tools to control internal factors of price, quality of product, and marketing in order to be competitive in today's marketplace Provide tools to evaluate and recognize the impact of external factors on current and future operations - Are clearly communicated to internal and external stakeholders - Permit the Department to address perceived weaknesses and threats and build upon current strengths and opportunities Promotes the practice of continual improvement through self - operation assessments - Promotes the practice of business process reengineering to implement dramatic improvements through technology and other means - Promotes a more efficient work force through gam -sharing r Provide summary analysts of any particular organization function that appears to be noncompetitive due to changing market conditions, regulatory requirements, technology or other reasons • Provide draft report of Department's general management functions The draft report will include an executive summary, a discussion of general management practices and policies, and detailed analysis organized by individual utility • Include City's comments on draft report in final study report Phase 2 - Comparative Analysis The purpose of this phase is to examine specific and significant cost components of each operating division of the Department and perform a comparative analysis with other public and private utilities The comparative analysis will include the following cost components • Electric Utility - Electric power supply, fuel power pooling and partnerships, power production, transmission, substations, distribution, engineering, metering, radio services, fiber optic services, and computer / technical services to internal / external organizations • Water Utility - Raw water supply, regional partnerships, treatment, storage and pressure pumping, distribution, engineering, metering and wholesale services • Wastewater Utility - Collection, pumping stations, treatment, blosolids management, regional partnerships, wholesale services and stormwater drainage • Solid Waste Utility - Residential collection, commercial collection, landfill, composting and recycling • Fleet Services - Vehicle maintenance, parts, fuel services UI • Support Services - Utility billing, customer service, accounting, purchasing, warehousing, legal, information services, human services, risk management, finance and treasury, utility engineering and inspection Task 2.1 Identify Benchmarkmg Criteria This task will be performed early in the study in order to allow sufficient time for the conduct of the analysis and evaluation of the comparative results Review benchmarkmg criteria gathered from interviews performed in Phase 1 • Meet with Project Department representatives to finalize benchmarkmg criteria Task 2 2 Perform Benchmarkrng Analysis. • Meet with Department's Project Manager and the Management Study Oversite Committee to select benchmarkmg candidates • Conduct benchmarkmg analysis using data currently available to the Department and the Consultant This data may be supplemented with additional data from other candidates as deemed necessary for analysis and evaluation purposes Task 2.3 Evaluate Benchmarking Results • Identify significant gaps in performance applicable to the Department's operation • Determine impact of performance gap on the overall success of the Department Recommend specific steps for performance improvement N Task 2.4 Prepare Draft Comparative Analysis Report • Prepare draft report of comparative analysis • Include City's comments on draft report in final study report Phase 3 - Identification of Outsourcing Candidates and Options During the course of the study it is conceivable that the Consultant will identify functions currently performed by the Department which offer the potential of outsourcing through cost reduction or improved quality and service These outsourcing opportunities will be included in either the Phase 1 or Phase 2 draft reports Supplemental Services During the course of this study it is conceivable that issues outside the basic evaluation already noted in the previous phases may arise from external or internal stakeholders that the Department's Project Manager and the Management Study Oversite Committee deems necessary for separate evaluation in support of the goals of this management audit The Consultant will proceed with these evaluations upon written direction from the Department's Project Manager 0 Exhibit C City of Denton, Texas Utility Department Management Study List of Project Deliverables 1 Project orientation and planning meeting 2 Questionnaire for interviews 3 Summary of interview results 4 Management workshop 5 Summary analysis of Department functions that appear to be noncompetitive 6 25 copies of Draft report on Phase 1 findings (general management functions) 7 Benchmarking criteria 8 List of benchmarking candidates 9 25 copies of Draft report on Phase 2 findings (comparative analysis) 10 25 copies of Draft study report I 1 Presentation of Draft study report 12 100 copies of Final study report 13 Presentation of Final study report Exhibit 1) City of Denton, Texas Utility Department Management Study Project Schedule Week Beginning Event March 5, 1997 Authorization to proceed with study March 10, 1997 Project orientation and planning meeting Interviews with external, internal Department, and other City agency stakeholders begin Benchmarkmg begins March 31, 1997 April 21, 1997 May 19, 1997 June 23, 1997 June 30, 1997 Management Workshop Draft report on general management review Draft report on comparative analysis and outsourcing candidates Presentation of preliminary study report Final report July 7, 1997 Presentation of final report } 0) z ] L W �2( k o ujaLu [§S ek [ § Eqf|\\ §f// !_ )z � ƒ § a = f LU)E ) „ OR 4 ; § 0 }� r ` °77` ° e ` / ! ! o,!!0, 0000 0 e §_ !) £� RE w £! ` �{ | _ ! i & • _ 1;± E � f!§/ ;;�!§!7 EC)' ) } - 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