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1997-062J \WPDOCS\ORD\BLACK&V ORD 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 w~th Black & Veatch, a copy of whlch is attached hereto and ~ncorporated here~n 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 ~/~k day of ~, 1997 ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY DATE MARCH 4, 1997 c I TY~X)U2~CIL REPORT TO Mayor and Members of the City Council FROM Kathy DuBose, Executive D~reetor of Finance SUBJECT RFSP # 1966 - UTILITY DEPARTMENT MANAGEMENT STUDY RECO3~3~IDAIIO31: We recommend this RFSP #1966 for a Utlhty Department Management Study be awarded to Black and Veatch ~n the not-to-exceed amount of $160,000 00 SIJMMARY. This proposal is for a professional consultant group to perform a management study of the Utility Department The study is a requirement of the Ctty Charter and ~s to be performed at ten year tntervals Five proposals were submitted ~n response to twenty five sohcltatlons marled Those submitting proposals were Arthur Anderson Delmtte & Touche, LLP Black and Veatch Barrlngton Wellesley Group Schumaker & Assocmtes Black and Veateh and Schumaker and Assocmtes were selected for presentattons to the selection panel Black and Veatch was selected by the panel and the recommendation presented to the Pubhc Utility Board The Public Utility Board approved the contract subject to legal rewew on February 17, 1997 The contract is based upon a scope of services w~th an estimated t~me asmgned to each task ProJect bllhng wdl be based upon actual hours spent on the project PROGRAMS, DEPARTMENTS ORGROUP~_AFF~CTED. Denton Mumc~pal Utd~tles FISCALIMPACI. Th~s project ~s hm~ted to a not-to-exceed $160,000 00 and will be funded from Utd~ty Department Funds Attachments Minutes from Pubhc Utility Board dated February 17, 1997 (Item 15) Respectfully submitted Katb. y~B~e Executive D~rector of Finance Approved T~tle Purchasing Agent 840 AGENDA 3 FRONI DENTON UT[L RDNI FRX NO I OtY§66812e 82-18-97 DS~8R P 03 CITY OF DENTON PUBLIC UTILITIES BOARD ANNUAL PLANNING SESSION February 17, 1997 Minutes Ex~,erpt - 15 CONSIDEK APPROVAL OF A CONTRACT WITH BLACK AND VEATCH CONSULTANTS TO PERFORM A UTILITY MANAOEMENT STUDY Mt Nelson presented this item He ~md that the draft contract was being completed by the Legal d,~partmcnt w~th rews~on$ in the qpecial proms~ons area, minor format changes and a thorough review of the newly received project deliverables A Management Study Oversight Committee was sanctioned and wall meet on a weekly basis with Utility inanagemem to provide feedback and mformaUon as the study pmgre~ea Mr l-Iopkms made a motion to approve the contract subJeCt to Legal review Mr l hompson seconded the inotlon All ayes, no nays inotion approved PROFESSIONAL SERVICES AGREEMENT FOR UTILITY MANAGEMENT STUDY STATE OF TEXAS § COUNTY OF DENTON § THIS AGREEMENT is made and entered into as of the ~/~'~ day of ~, 1997, by and between the City of Denton, Texas, a Municipal Corporation, with ~ts principal office at 215 E McKlnney 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 (herelnafter referred to as "CONSULTANT"), acting herein by and through its duly authorized representative WITNESSETH, that in conszderation of the covenants and agreements herein contained, the parties hereto do mutually AGREE as follows: ENGAGEMENT OF CONSULTANT The OWNER hereby contracts with CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services hereln 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 connectl~n with the followlng described project Management Study of the City of Denton, Texas Utility Department (hereinafter referred to as the "Project") The Project shall include wlthout 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 Utzlzty Department wzth other publicly and privately-owned utzlztzes ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the followzng services in a professzonal manner' A The CONSULTANT shall perform all those servzces as necessary and as described zn OWNER'S Request for Sealed Proposal #1966 (Openlng date January 14, 1997), which zs attached hereto and incorporated by reference, and made a part hereof as Exhzbzt "A", as zf wrztten word for word herezn B TO perform all those servzces (hereznafter referred to as the "Basic Servzces") set forth in CONSULTANT'S Scope of Services (hereznafter referred to as the "Scope of Servzces") zs attached hereto and incorporated by reference and made a part hereof as Exhzbzt "B", as zf wrztten word for word herezn C CONSULTANT shall perform all those servzces set forth zn zndzvldual task orders which shall be attached to thzs Agreement and made a part hereof for all purposes as separate agreements Any and all pre-prznted terms and condztzons shown on any task order shall be null and vold D CONSULTANT shall furnzsh to OWNER the Project Deliverables whlch are set forth on the Lzst of Project Delzverables (hereznafter referred to as the "Project Deliverables"), which KS attached hereto and zncorporated by reference, and made a part hereof as Exhibit "C", as zf wrztten word for word herezn E If there zs any confllct between the terms of thzs Agreement and the exhzbzts attached to thzs Agreement, the terms and condztzons of thzs Agreement wzll control over the terms and conditzons of the attached exhzbzts 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 lltlgat~on in connection w~th or ~n addition to those services contemplated by this Agreement Such services, ~f any, shall be furnished by CONSULTANT on a fee bas~s negotiated by the respectlve parties outside of and in addition to this Agreement B Sampling, testing or analys~s beyond that specifically ~ncluded · n Basic Services ARTICLE IV PERIOD OF SERVICE This Agreement shall become effective upon execution by the OWNER and the CONSULTANT of thls Agreement and upon issuance of a written not~ce 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 Servlces, if any, and any required extensions approved in writing, by the OWNER Th~s Agreement may be sooner terminated in accordance w~th the provisions hereof Tlme ls a material consideration ~n 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 h~s designee OWNER requires that CONSULTANT perform lts management study ~n accordance with the Project Schedule (hereinafter referred to as the "Pro]ect Schedule"), which · s attached hereto and incorporated by reference and made a part hereof as Exhibit "D", as if written word for word herein CONSULTANT shall not be responsible for delays ~n completion of the Project which are attrlbutable 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 "D~rect Non-Labor Expense" is defined as that expense for any assignment incurred by the CONSULTANT for supplies, transportation and equlpment, travel, communications, subsistence and lodging away from home and s~mllar incidental expenses directly ~ncurred in connection with that assignment B BILLING AND PAYMENT For and ~n consideration of the professional services to be performed by the CONSULTANT herein to fully complete the Pro3ect in a professional manner ~n accordance with the Scope of Services, the OWNER agrees to pay a total fee (including reimbursement for d~rect 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 ~n ~ts completion of the Project which is shown in Exhibit "E" cons~stlng of eight (8) pages, which Exhibit is attached hereto and incorporated by reference here~n, and made a part of this Agreement as ~f 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 wzll 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 Pro3ect Nothing contained ~n th~s Article shall require the OWNER to pay for any work whach is unsatasfactory, as reasonably determaned by the Caty Manager or h~s designees, or for any statement whach is not submitted ~n compliance wath the terms of th~s Agreement The OWNER shall not be required to make any payments to the CONSULTANT when the CONSULTANT Ks ~n default under the terms of th~s Agreement It ~s speclfacally understood and agreed that the CONSULTANT shall not be authorized to undertake any work, or perform any professional servaces, pursuant to thas Agreement which would requare additional payments by the OWNER for any charge, expense or reimbursement above the maxamum not to exceed fee as hereanabove stated, wlthout first having obtaaned prior written authorization from the OWNER The CONSULTANT shall not proceed to perform the servlces lasted an Artacle III "Addat~onal Services", w~thout obtalnang praor written authorlzataon from the OWNER C ADDITIONAL SERVICES For additional services authorized an wratlng by the OWNER ~n Article III, the CONSULTANT shall be paad based on the Schedule of Charges at an hourly rate shown ~n Exh~bat "E" Payments for addataonal servmces shall be due and payable upon submassaon by the CONSULTANT and shall be paad an accordance with Article V B hereof Statements shall not be submatted to OWNER by CONSULTANT more frequently than monthly PAGE 5 D PAYMENT If OWNER falls to make payments due the CONSULTANT for servmces and expenses wmthmn smxty (60) days after receipt of the CONSULTANT'S undmsputed statement thereof, the amounts due the CONSULTANT wmll be mncreased by the rate of one percent (1%) per month from the samd smxtleth (60th) day, and in addltmon, the CONSULTANT may, after gmvmng seven (7) days' written notmce to the OWNER, suspend servzces under thms Agreement until the CONSULTANT has been pamd mn full all amounts due for servmces, expenses and charges provided However, nothmng heremn shall requmre OWNER to pay the late charge of one percent (1%) set forth heremn mf OWNER reasonably determmnes the work performed by CONSULTANT ms unsatmsfactory, mn accordance wmth thms Agreement In the event OWNER questlons some portmon or element of an mnvomce, that fact shall be communmcated mn wrmtmng by OWNER to the CONSULTANT mmmedmately CONSULTANT will reasonably cooperate to effect resolutmon of the problem and shall transmmt a revmsed mnvomce to OWNER as ms necessary or approprmate Amounts not questmoned by OWNER shall be promptly pald to CONSULTANT mn accordance wmth the above payment provmsions ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercmse reasonable care and due dmlmgence an d~scoverln~ and promptly reportmn~ to the OWNER any defects or defmclencles mn the work of the CONSULTANT or any of CONSULTANT'S subcontractors or subconsultants on the Project OWNERSHIP OF DOCUMENTS Ail documents prepared or furnmshed by the CONSULTANT (and CONSULTANT's subcontractors or subconsultants) pursuant to thms Agreement are lnstruments of service and shall become the property of the OWNER upon the termmnatmon of thms Agreement The PAGE 6 CONSULTANT ~s entitled to retain cop~es of all such documents The documents prepared and furnished by the CONSULTANT are ~ntended only to be applicable to th~s Project and OWNER'S use of these documents ~n other projects shall be at OWNER'S sole r~sk and expense In the event the OWNER uses the Agreement ~n another project or for other purposes than specified here~n any of the · nformat~on or materials developed pursuant to this Agreement, CONSULTANT ~s released from any and all l~ab~l~ty relatlng to their use in that other pro3ect CONSULTANT shall retain ~ts r~ghts ~n · ts standard drawing details, designs, specifications, databases, computer software and any other proprietary property R~ghts to intellectual property developed, utilized, or modified in the performance of the CONSULTANT'S services under thlsAgreement shall remain the property of the CONSULTANTS ARTICLE VIII INDEPENDENT CONTRACTOR CONSULTANT shall provide services to OWNER as an ~ndependent contractor, not as an employee of the OWNER CONSULTANT shall not have or claim any r~ght arising from employee status ARTICLE IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and ~ts officers, agents, and employees from and against any and all l~abil~ty, claims, demands, damages, losses and expenses, ~ncluding but not l~mited to court costs and reasonable attorney fees ~ncurred by the OWNER, and ~nclud~ng w~thout l~m~tat~on, damages for bodily and personal ~n]ury, death and property damage, to the extent caused by the negligent acts or omissions of the CONSULTANT or ~ts officers, shareholders, agents, or employees ~n the execution, operation, or performance of thls Agreement Nothing ~n th~s Agreement shall be construed to create a l~ab~l~ty to any person who ~s not a party to th~s Agreement and nothing here~n shall waive any of the party's defenses, both at law or equity, to any claim, cause of action or l~t~gat~on f~led by PAGE 7 anyone not a party to thzs Agreement, lncludzng the defense of governmental lmmunmty, whmch defenses are hereby expressly reserved ARTICLE % INSURANCE Durzng the performance of the professmonal services by CONSULTANT under thms Agreement, CONSULTANT shall malntazn the followzng lnsurance coverage wzth mnsurance companmes lmcensed to do buslness mn the State of Texas by the State Insurance Commlsslon, or any successor agency that has a ratmng wmth Best Rate Carrmers of at least "A"- or above A Commerczal General Llablllty Insurance wmth bodlly mn]ury lmmmts of not less than $500,000 for each occurrence, and not less than $500,000 mn the aggregate, and wzth property damage lzmlts of not less than $100,000 for each occurrence, and not less than $100,000 mn the aggregate B Automobzle Lzabzlzty Insurance wmth bodmly mn]ury lmmmts of not less than $500,000 for each person, and not less than $500,000 for each accldent, and wmth property damage lmmzts of not less than $100,000 for each acczdent C Worker's Compensatlon Insurance in accordance with statutory requmrements and Employers' Llab~l~ty Insurance w~th l~m~ts of not less than $100,000 for each acczdent D Professzonal Lmabmlmty Insurance with polmcy llmmts of not less than $1,000,000 annual aggregate E CONSULTANT shall furnlsh znsurance certzfzcates at the OWNER's request to evzdence such coverage The mnsurance polzcmes shall name the OWNER as an addztmonal insured on all such polzcmes, except for the worker's compensatmon and professmonal llabmlmty coverage, and shall contamn a provmszon that such mnsurance shall not be canceled or modlfzed wmthout thmrty (30) days przor wrztten notmce to OWNER and CONSULTANT In such event, the CONSULTANT shall, prior to the effectmve date of the change or cancellation, delmver to OWNER substztute certmfzcates of mnsurance whzch furnzsh the same coverage PAGE 8 ARTICLE XI ARBITRATION ANDALTERNATE 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 mall, 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 f~nal 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, 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 Ail notices, communications, and reports required or permltted under th~s Agreement shall be personally delivered or ma~led to the respective parties by depositing same in the United States ma~l at the address shown below, certified mall, return receipt requested unless otherwise specified herein Ma~led notices shall be deemed communicated as of three (3) days mailing To CONSULTANT To OWNER Black & Veatch City of Denton ATTN John Gallagher ATTN Robert E Nelson Title Partner Title Exec Dlr of Utilities 11900 East Cornell Ave 215 E McK~nney Suite 300 Denton, Texas 76201 Aurora, Colorado 80014 Ail notices shall be deemed effective upon receipt by the party to whom such not~ce is given or within three days after mailing PAGE 10 ARTICLE XV ENTIRE AGREEMENT Th~s Agreement consisting of fifteen (15) pages and f~ve (5) exhlb~ts constitutes the complete and flnal expresslon of the Agreement of the part~es and is ~ntended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, d~scuss~ons, communications and agreements which may have been made in connection w~th the subject matter hereof ARTICLE XVI SEVERABILITY If any provision of this Agreement ~s found or deemed by a court of competent jurisdiction to be ~nvalld or unenforceable, it shall be consldered severable from the remainder of thms Agreement and shall not cause the remainder of th~s Agreement to be invalid or unenforceable In such event, the OWNER and CONSULTANT shall reform th~s Agreement to replace such stricken provision w~th a valid and enforceable provision which comes as close as posslble to expressing the ~ntention of the parties regarding the stricken provlslon ARTICLE XVII COMPLIANCE WITH LAWS The CONSULTANT shall comply w~th all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder ~n effect durmng the performance of services by CONSULTANT 'ARTICLE XVIII DISCRIMINATION PROHIBITED In performlng the services required hereunder, the CONSULTANT shall not discrmminate against any person on the bas~s of race, color, religion, sex, national or~g~n 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 Ail services required hereunder will be performed by the CONSULTANT or under Its supervision Ail personnel engaged 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 modlf~catlon 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 ~nformatlon 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 thls 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 ~n 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 ~ts duly authorized City Manager, and CONSULTANT has caused this Agreement to be executed by ~ts duly authorized Partner on this the'~ day of ~ , 1997 OWNER CITY OF DENTON, TEXAS A Municipal Corporation TED BENAVlDES, CITY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY PAGE 14 APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY ATTES . CONSULTANT BLACK & VEATCH A Partnership J:\WPDOCS\K\B&VEATCH.K PAGE 15 CITY OF DENTON RFSP # 1966 UTILITY DEPARTMENT MANAGEMENT STUDY OPENING DATE: JANUARY 14, 1997 Exhzbzt A CITY OF DENTON REQUEST FOR PROPOSALS UTILITY DEPARTMENT MANAG~ STUDY RFSP #1966 I. GENERAL The Charter of the City of Denton prescribes that "at intervals not exceeding ten (10) years the couno! shall at the expense of the uuhues revolved cause a general management survey to be made of all uulme~ under the jurisdiction of the board by a competent management consulting or industrial engineering tn-m, the report and recommendaUons of which shall be made pubhc" The C~ty of Denton is seelong proposals from quahfied professional or engmeenng firms to conduct th~s charter prescribed management study Denton and all local governments are facing increasing pressure to achmve greater producUwty, efficiency and effecuveness in prowdmg services Denton recogmzes that to meet these expectaUons that bench marlong, business process redesign and outsourcmg are some of the methods being used by local governments to address the more competitive uuhty enwronment that exists today Therefore, m addmon to the general management study as prescribed by the charter, Denton desires that a bench marlong of operational costs be performed on selected s~gmficant cost components of the various uUhty operating dlws~ons and that business process rede~gn and outsourcmg, if determined appropriate, be included as a consideration m the recommeodat~ons resulting from flus study Th~s study, should evaluate the cost and quahty of Denton's ex~stmg u~hty services and provxde recommendattons including general and specific operational actions and pohcy changes, which can be used as a grade for change~ so that Denton can assure ~ts citizens are recexwng quality, cost effecuve ut~hty services whxch compare favorably wtth other smular ut~ht~es m the region A. ~ Please subrmt six (6) cop~es of your written proposal not later than 2 00 p m on Sanuary 14, 1997, to Mr Tom Shaw Purchasing Agent C~ty 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 ) City of Denton RFP Utility Department Management Study B. lnouiries and Pre-nrouosal Meetinn' Submit all mqumes about the pwject to Mr R E Nelson, City of Denton, City Hall, Department of Utlhties, 215 E McKmney, Denton, TX 76201 in writing at the above address A pre-proposal meeting will be held in Denton, Texas, at 2 00 p m December 17, 1996, m the Denton City Hall, Civil Defense Room Firms not attending the pre-proposal meeting may not receive further conslderauon for this assignment All mquines should be submitted in wnUng 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 Preoaration Please note that no reimbursement will be made by the City of Denton for any costs incurred in the preparauon of this proposal, attendance at the pre-proposal meeung, and/or any oral presentation (if required) II. DESCRIFrlON OF PROJECT A. Study Oblective/Purpose The purpose of this study is to perform the general management study as prescribed by the City charter, to perform an overall benchmarlong comparative analysis of the major cost components of the various utility operaUng divisions and provide recommendations of changes, for internal improvements including options for out. sourcing, that will enhance the efficiency and effecuveness of Utdity services in the City of Denton B. ~_9.iiL0i.l~r..oJ{~ The study shall include an independent evaluation of the general management of the electric, water, wastewater (including stormwater drainage) and municipal solid waste (MSW) uUhttes and the city's fleet services It shall also include a comparative analysis of major cost components for the various utility operating divisions The comparauve 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 outsourclng, operational methodologies, purchase of services and products, labor, power, chemicals, vehicles, equipment, etc 1. ~- 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 prowdmg utility services Included, but not limited in this review, shall be such ~ssues as governance, organizational structure, financial practices, development policies, support services, franchise and PILOT City of Denton RFP Utihty Department Management Study transfers, commumcations, pubhc relauons, planning and budgeting processes, rate development and admimstraUon, etc Governance review shall consider the Council, Public Utility Board, Management structure as outlined m the charter and analyze actual practice for compliance and effectiveness OrgamzaUonal structure review shall consider the present business service structure effectiveness versus other possible orgamT~tional structures such as operational function The review should also include, but not be limited to, reviews of various operataonal units and their relationship in the overall utihty 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 f'mancialissue~ of each utfltty Development policies review shall examine the city and uUhty overall utihty development pohcles that affect the various utihties financially, planning wise, operationally, etc Support services review shall examine the various support serwces 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, utflRy engmeenng and inspection, etc Franchise and payment m lieu of taxes (PILOT) review shall examine the pracuces m Denton as compared to other similar cities and the comparative impact on utihty rates and services Commumcattons review shall examine the general communications, formal and informal, necessary for the internal funcuomng of the Utility, other city departments and governance structures in the process of intelligence gathenng, decision malang, directing, controlling, momtonng and informing, the staff involved in providing uUlity services Public relations review shall examine the formal and informal public relations programs, mediums, etc for effectively informing and coordinaung with customers Public relations and external communications reviews may be Cl~y 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, sohd waste management including recychng and landfill, regional and parmerslup involvements in all uUhty areas, delivery facilities for electric, water, wastewater and solid waste collection services, etc shall be included in the general secuons apphcable to the comparauve analysis part of this management study versus this planning section of the general management part of this study BudgeUng review shall examine the process of budget development, approval, implementation and monitonng This shall include the capital and operating budget processes Rate development and administration review shall exarmne the process of developing, implementing and administrating rates for electnc, water, wastewater and solid waste utihty services This review should provide a cursory review of the market sensitivity and flexthihty of Denton's rates and the comparablhty of Denton's rates with other similar communiues 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 utihzing 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 effecUveness of the utility 2. ]~[lil~.~glti~ - The comparauve 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 uuhty services of electnc, water, wastewater and solid waste plus fleet services Where appropriate, each of the subunlts of the main utility services should also include a general section, example -water production, electric preducUon, wastewater plant, landfill, etc The comparative analysis of the main uUhty 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, Ctty of, Denton RFP Ut~hty Department Management Study ra&o serwces, fiber opuc services, and computer/techmcal services to internal/external organlzaUons Water Utility - Raw Water Supply, regmnal partnerships, treatment, storage and pressure pumping, &stnbutton, engmeenng, metenng and wholesale serwces Wastewater Utility -Collectton, Pumping Stations, treatment, btosohds management, regtonal partnershxps, wholesale services and stormwater drmnage Solid Waste Utility - Res~denual collecuon, commercml collection, landfill, compost~ng, recychng Fleet Services - Vehicle mmntenance, parts, fuel services ~ - utlhty bllhng customer service, accounUng, purehas~n§, warehousing, legal ~nformataon serwces, human services, risk management, finance and treasury, utility engmeenng and ~nspect~on O~tsourcin~ - If dunn§ the course of the general management or comparauve analys~s rewew, the consultant finds that any funcuon the uUhty or aty ~s now performing by its own personnel ~s not reasonably comparable or compeUUve and that there are s~gmficant reasons to conclude would not be comparable or competitive w~thm a reasonable t~meframe the consultant shall present the ~ssues revolved w~th those functions m the scheduled May 199'/interim report If outsourc~ng ~s an appropriate recommended acuon, to address the concerns of such funcuon(s), the consultant may be requested to pwvule an RFP and a detmled plan for ~mplementatton for outsourcmg Such an effort if requested, must have pnor approval of the c~ty and will result m an amendment to the consultants base contract C. ]~L]~' It xs anuclpated that the project will be completed m phases with ~ntenm draft reports on key ~ssues being prepared for revxew by the C~ty The final report would be a single comprehensive document xncludmg all interim reports The cost of serwce and comparauve relatlonslup (bench marlong) to other utflmes of comparable s~ze ~s reqmred The analys~s shall ~nclude the major cost components such as labor, power, chemicals, amortization of capital facfimes, purchased services and products, and other factors The C~ty of Denton's cost shall be measured agmnst other comparable uUht~es and the competmve market, ~f apphcable The C~ty does not antxc~pate engaging the selected consultant to ~mplement the recommendations contained in the consultant's report, e~ther as a prime consultant or as a sub-consultant City of Denton RFP Ut~hty Depamnent Management Study D. Contraet and Confldentialitv The worhng documents of the study and mformat~on thereto 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 confidenUallty agreement (three year's duraUon) The proposer who is selected to perform tlus 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 subcontracUng professional or engmeenng firm who performs work on this study from bidding, submimng proposals, or performing any other work for the City on any contract or any other mumcipal funcUon, operaUon, or service that is outsourced or results directly or mducectly from flus study for a period of three years after the completion of this study No lnformaUon obtmned from the proposal process or any work acUvlUes can be divulged to any party other than those designated in wnUng by the City of Denton Several areas that will be subject to review are areas where a competmve market is or will soon exist The consultant shall be cogmzant of the ramifications of divulging mformauon that may be cnucal to the Utihty's ability to compete in such markets The consultant shall present mformat~on in reports in such a manner that does not make avmlable critical markeung and confidenual mformat~on to competing entitles E. Services Furnished by the City of Denton The City will furnish the following to assist the consultant on this project 1 A single individual designated as the City's representative 2 All readily available information from the City's exisUng records including prior management studies, financial analysis, operauonal 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 ha~son to the consultant in requesting information from other municipal, uUhty, state or other organizat~ons upon request of the consultant The city will obtain from other parties such mformaUon as the consultants determine necessary for conducting the management study F. Description of Utility Oneratlons. Budgets and Or~amzation (See Appendix A) Cxty of Denton RFP Ut~hty Depa,-tment Management Study HI. PROPOSAL REQUIREM~NTS A. Information to be Subnntted Please include as a minimum the following mformatmn with your submittal in the order indicated 1. Transmittal Letter Indicate the person authonzed to contract on behalf of the proposer and any subcontractors or other pa_rUes 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 pernut an evaluaUon of your approach 3. Qualifications a. Firm: General descnpuon of your firm, including the types of professional or engmeenng services available, domesUc or foreign ownership, general areas of pracuce, number of employees m 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 simdar management consulting services to publicly owned uUhues and to privately owned uUhUes The Firm, either w~thm ~ts own personnel or through sub-consultants, must have expert techmcal personnel m each of the functional areas of electncal, water, wastewater, sohd waste and fleet services b. Project orgamzatlon and personnel Provide an organlzauonal chart depleting the pnncipal management consultant, the project manager, and any key support personnel and their specific roles in the project In addit~on, indicate an average percent of uUhzaUon on this assignment anU¢lpated dunng the course of the study for each of the key members of your project team, and the location of theur pnnclpal office Indicate the correlaUon with the proposed project team personnel and the project descnptions of past assignments of a similar nature performed by your firm in the last five years Idenufy sub-consultants or personnel from other organizations who would be ass~sUng on this assxgnment c. Recent sunilar projects with budget and references Indicate a hsung of the top ten clients (determined by annual billings) over the last three years for similar type assignments AAA~9~ ~ 7- C~ty of Denton P.~P Uuhty DelXu'tment Mnnagement Study Also provide a hsUng of not less than five smular management studies conducted for pubhc ut~hues ~n the last five years Include the name, utle, address, and current telephone number of the chent 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 ut~hty, municipal sehd waste, or a combmaUon 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 esumated percentage of work your firm has completed within the last three years for the following major categories Public U~lt~es, Investor-Owned Utlltues, Pr~vatazed Ut~hues Service Provtders or related industries for other clients, and other chents e. Confllet of Interest The consultant should ldenUfy any confhcts of interest, lncluchng but not limited to services other than management consulting provided to other ut~ty chents, construcUon firms, private contract operators, eqmpment manufacturers, or related business entrees Other business relaUonslups wluch could affect the independence of the management consultant to serve the best interest of the City of Denton must also be tdenufied (these include parent company ownership, subsidiary firms, other alliances or affihat~ons such as joint ventures or preferred teammg arrangements) and any other factor whtch may affect the objecuvity of the management consultant Fmlure to make such disclosure could result m the disquahfieat~on 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) addtuonal studies completed within the last f~ve years These reports will be used by the selecUon committee to evaluate the style, content and depth of the study anuclpated by the consultant on the City of Denton's proJect. The reformation will be handled confidenually and returned to all proposers lmmedtately following selecuon If necessary, the consultant ts free to remove the chent's name from the examples B. FUTURE OUTSOURClNG ELIGIBILITY The firm who ts selected to perform this study or any subcontracung professional or eng~neenng firm who performs work on this study shall not be ehgthle for a period of three years after compleUon of this study to bid on or contract for any municipal oporat~onal function that is outsourced as a result of thts study AAA0~gD~ fi~ Czty of Denton RFP Utahty Department Management Study IV. SC~I~nUI,~ AND SF~L~CTION PROCESS A. Schedule The Ctty of Denton proposes to evaluate the submitted proposals m accordance with the following schedule ! Pre-proposal meeUng, December 17, 1996 2 All proposals recezved by 2 00 p m, Sanuary 14, 1997 3 Consultants short-hsted for interviews will be noUfied by lanuary 20, 1997 4 Interview of short-hsted firms, Sanuary 24, 1997 The selected finn will be notified by January 27, 1997 6 Contract negouatton completed by February 3, 1997 7 NoUce to Proceed will be issued on February 21, 1997 8 Interim reports on specific issues due in April, May & lune 1997 9 Presentatton of Prehmmary Report to the Pubhc Ut~hUes Board/City Council on lune 23, 1997 10 Presentauon of Final Report to Public Utfliue,s Board/City Council on Suly 8, 1997 B. gvaluatmn/SeleCtlon Criteria The City of Denton will appoint a selecUon committee composed of five members including a Council member, Public Uuhty Board member, City Manager, ExecuUve Director of Utalmes and ExecuUve D~rector of Finance The selecUon committee will review the submitted proposals using the following selecUon criteria and wetghmg factors 1 Experience, qualtty and avaflablhty of assigned team members (30 points) 2 Project approach for this asstgnment (20 points) 3 Recent finn experience with comparable utahues and study costs (20 points) 4 Independence and absence of conflicts of interest of management consultant (20 points) 5 Other factors (10 points) C. Minoritv and Women-Owned Business Enternrises fl~I/WBE~ The City of Denton does not have a formal M/WBE goals part~clpaUon program in this project If M/WBE part~cipatton is proposed, consultants should identify the proposed firm(s) as such in the project organtzatton section AAA0~91N. rm APPENDIX A DESCRIPTION OF U'IILITY 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 Bordenng on the Dallas/Fort Worth metroplex, Denton is convement to major financial and commercial centers as well as major transportauon facdiUes such as the Dallas/Fort Worth Airport and Alliance A~rport 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 Alq)On, Denton is home to many of those individuals and businesses serving as support structures, such as markeung, sales, etc Denton has a complement of manufactunng and lugh tech industry and is a retail and medical center for North Texas Denton Municipal UUhUes has reflected the growth of the city and conUnues to emphasize the strong partnership between the Utlhty and its clUzen-owners who benefit from public power CITY GOVERNMENT Denton operates under a Council/Manager form of government This form of government allows citizens to elect their representatives to make policies The C~ty Council oversees the ordinances, and policies of the overall city organlzauon The City Council hires a professional City Manager to oversee the day-to-day management of the City using the pohcies they have set as guidelines There are seven members on the C~ty Council represenung four single-member d~stncts, two at-large d~stncts and a Mayor They are all voting members of the Council Denton Public Utilities Board The Denton Public Utlht~es Board is composed of five members appointed by the City Council to serve four year terms The City Manager and the Executive D~rector of Uuhues are officio members of the Board The Board acts as a consulUng, advisory and supervisory body to the Department of UtahUes The Board has authority and respons~bflRy to study and to recommend policies relating to the organization, including the setting of rates and charges, operations, promotion, enlargement, planmng, system expansion, personnel, ~ncumng of indebtedness, ~ssuance of bonds, budget and capital improvement project recommendations A AAO~gDd l'tn - 10- C~ty of Denton RFP Utthty ~DepatUnent Management Study The Denton Pubhc Utthties Board begins each year with an annual Planmng Session m January and, with departmental staff, develops pnonUes for pohcy/procedure as they apply to local operaUons and administration of the uuhues and local, regional and statewide regulatory and political issues A 'Statement of Policy~ is then formulated vnth this policy funcUomng as a major guideline for the orgamzation The Annual Planning Session by staff, the Annual Forecast, Annual Financial Report, Capital Improvements Plan and OperaUng Budget involve considerable exchange of ideas and information between Board, staff and other enUUes over a penod 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 m to it sufficient to respond to an ever-changing compeuuve environment The Board members serve on several committees winch include the Vision 21 st Century Project for the City, the Chamber of Commerce Economic Development Board, the PLUS I Utihty Account Review Committee, the Land Use Development Plan Committee, the TM'PA Board of Directors, as well as serving on several Nauonal Comrmttees, such as the Amencan Pubhc Power Association's LegislaUve and Resolutions Committee, their Policy Makers Advisory Council, and the Texas Pubhc Power Association's Legislative and Resolutions Committee The Board also sends an ermssary to Washington during cntical heanngs on issues that directly impact the Utility organization UTILITY ADMINISTRATION The Utility Administration Department is responsible for management of the Elecmc, Water, Wastewater, and Solid Waste Depa~ments, which includes 26 organ~zauonal umts, for the City of Denton, Texas. This department provides these services to 70,000-t- residents of the City of Denton A few of the responsibility areas of the Utility Admmistrauon Department include -- all utility long-range planning 0 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 Uulmes 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 C~ty of Denton RFP Utility Dep~ment Management Study -- The Utlhty Admimstratton office ts the contact office for all local, state and federal regulatory agenctes deahng with uulmes and acuvely pamc~pates m local, state and federal legtslauve matters Brief outhnes of the four major departments and thetr operating dtvtstons follow THE ELECTRIC SYSTEM The Ctty of Denton has owned and operated xts Elect. nc System for apprommately 91 years Today, the Electric System serves apprommately 31,600 customers. The Electnc System conststs of 174 MW of gas fired generaUon, 3 MW of hydro generation, Denton's 21 3% share of the Gthbons Creek coal-fired umt, 1 ! substations, 16 males of 69 KV transnuss~on, 303 males of overhead d~stnbuUon hnes, 204 miles of underground distribution hnes, and 33 males of fiber optic hnes The system ts operated by 133 employees The 1996 annual system peak was 219 MW and ~s projected to gww by shghtly 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 shghtly 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 ts not forecast to increase m 1997, except for a projected 1 51% increase necessary to reflect fuel cost changes Fiscal year 1996 revenues are forecast to be $74,243 mtlhon Ftscal year 1997 revenues are forecast to be $??,296 mdlon The fiscal year 1996 operating expenses are forecast to be approxtmately $69,500 mflhon The fiscal year 1997 operating budget ~s $?5,225,883 The fiscal year 1997 Capttal Improvement budget is $54,566 mdhon Electric Administration The Electric Admmtstration D~vts~on prowdes general supervision for Electnc Utihty OperaUons including the funcUonal dtv~stons of ProducUon, Operauons/Dtspatch, Overhead-Underground Servtces, Substations, Engmeenng, Metering, Meter Readmg, Customer InformaUon, Demand Management, and Commumcauons Included wtthm the funcuons of the Admmlstrauon D~vtston ts Operating Budget and Capxtal Improvement Plan formulaUon, System Planning and Design, Board and Counctl Agenda preparaUon, rewew and momtonng of rates, system load forecasting and planmng, and ~ndustnal, commerctal, and restdenUal development revtew Goal modtfications to the Electric Department Master Plan include tmplementlng recommendaUons and results of the Power Supply Study, development of quarterly purchased power and fuel cost adjustment ordinance, computer producuvtty xmprovements through lmlong of computer systems, space reqmrements and plan for service center, and expanmon of electric servtce into dual-cerufied servtce territories Other goals w~thm the Electnc Department are detmled w~thtn the spectfic d~vtston narratives AAA049D4 I'tll - 12- City of Denton RFp Utihty Department Management Study 1. Assure the ava~lablhty of needed electric resources to meet customer load through development of least cost long-term power resources supply coupled with development of cost-effective demand-side Programs 2 Mamtmn competiuve rates with adJoining uahties with goal of hmiung average increase to at or below inflation 3 Provide appropriate financing for major capital improvements and replacements without mcurnng excessive levels of debt 4 Select and track financial and performance indicators to measure Productivity and financial performance $ Support "Vision of Denton" planning process and contanue to support economic development to attract new business and retmn or expand existing ones 6 Provide employees with proper resources, trmnmg, facihties, procedures, and work environment for effective job performance and improved Productive service to our customers 7 Monitor and comply w~th 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 The Electric Production Division is responsible for the City's power generataon resources located at Spencer Station, Ray Roberts and Lewlswl reflects funding for purchase w le Hydros. The Production bud and Texas Municipal Power Po~l er requirements supplied by Texas Mumclpalg;towaderdl~naldyY The C~ty's power genera.on resources include five natural gas fueled steam-turbine generating units located at Spencer station. All five units are eqmpped w~th Combustion Engmeenng bo~lers 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 Lewlsvllle and Ray Roberts dams Those Units total 3000 KW in combined capacity and are operated as allowed by lake discharge d~rected by the US Army Corps of Engineers or Dallas - 13- City of Denton RFP Utzhty Del~'Vaent Management Study Water Uttht~es The umts operate pnmanly unattended vath routine operaUon and maintenance checks totaling a minimum of 16 hours per week In addttion to power generatton, the dlvmon operaUons staff monitors the elect_ncal 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 t~me and resources The Continuous Emission Momtonng Systems have been installed on units Four and Five as reqmred by EPA Staff performs all preventaUve maintenance on the CEM umts EPA acceptable electronw data reports must be submitted regularly Responsibflmes also include the Pollution Prevention Plan, SPCC and Storm Water Permit OSHA compliance and Title V operaUon pernut compliance are also responsib~httes of the electric production Personnel trmmng development are necessary to assure staUon availabdlty, capability, rehabthty, efficiency, and to maintmn regulatory compliance Craft progresszon requirements have been established Specific trmnmg curriculums have been developed for basic academics and for power plant fundamental Dis~)atch and Operations The UUhty Dispatch and Operatzons dtvmon is responsible for a wide range of acUviUes including, the development and admmlstrauon of a fully functional operat~on/dispatch center, coordination of the lntegratzon of GIS, SCADA, AVR, CAD, metenng devices and other external systems, coordination of the extension of automatzon functions throughout the transmission, distnbut~on, and substatton systems, handhng customers' serwce requests and assisung in the adjustment of system voltages and various levels, documenting outages and substaUon breaker operaUons, maintmnmg plant facihty records within OIS, and short and long term planning including system analysis, protectzve device coordination, contingency analysis, etc Customer calls for electnc, water, wastewater, sohd waste and animal control are handled by one full Ume and two 3/4 Ume Dispatchers The dispatchers handle approximately 14,000 calls per year covering outages, parUal power, hne locauons, sewer back-ups, no water or dirty water, loose animals, and full dumpsters The dispatch funcUon ~s operated from 7 a m to 11 p m, six days per week with the Power Plant staff operaUng the d~spatch for the remainder The two OIS Technicians are responsible for the upkeep of plant records They mmntain 442 coverages contaimng nine substations serving 48 dlstnbutzon 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 Engineenng City of Denton RFP Utility,Department Management Study These funcUons are performed under the dtrecuon of the Operauons Manager The Opemuon Manager Is also responsible for approwng sw~tclung orders and ~ssumg clearances, reviewing system data and making recommendations for improvements to the electrical system The Electric D~stnbuuon Dlwston provides new construction, service and maintenance of proposed and emsung underground and overhead electrical distnbuUon and transm~ssion systems in the City of Denton This includes new d~stnbution hnes, upgrading emsUng hnes to provide increased load capacity, prevention of overloading feeder conductors and service to new customers Other acUvlUes performed by ttus dxws~on 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 sqmrrel guards, insulated jumpers, replacement of failed direct buried underground cable w~th a condmt system and the maintenance of exit feeders (All these acUwt~es ~mprove the system reliability wh~le main~nmg the overall service level to our customers ) The dtvislon is divided into groups under three foremen One foreman supervises primarily underground construcuon and maintenance. The second foreman supervises overhead construcUon 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 hghtlng, tree trimming along with crews that respond to customers' service needs Th~s orgamzational format has proven to be a cost-effecuve method of operaUon In 1996, the Electric D~stnbuUons' Safety/Trmmng Coordinator was transferred from Electric D~stnbuUon to the entare Utility Department The Safety and Trmnmg work ~s now camed out by a part-Ume AdmmistraUve Intern that had been assisting the Safety/Traimng 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/Training Coordinator and the part-Ume Intern to assist in obtmmng the goal of becoming the first municipal electric utihty m the nation to obtmn the Mumc~pal Electric Safety Accred~tauon To obtmn this accreditation, the electric department must demonstrate industry "best pracUces' regarding all areas of regulatory compliance, employee safety, training and teamwork To meet all of the requirements, the overall attention of the Line Technician is required The Englneenng Technician II posiUon in the diwslon handles the purchase reqmsmons, receiving reports, momtors the budget and works closely with the Finance and Purchasing Departments to help resolve any conflicts m materials, budgeting d~fferences and proleet numbers. The Technician II position ~s ~so responsible for the coordmaUon with the Engmeenng Department on ongoing projects and helps with momtonng the cost and the performance measures for the D~strtbutton Div~sxon Over the past five years, the D~stnbuUon Dlws~on has undergone a reducUon m workforce by not replacing some of the employees that have resigned from their posiUons Even with this AAA049D4 fin - 15- City of Denton RFP Utihty Department Management Study reduced work force the Division has improved the serwce level due to the education and traimng offered and the utihzauon of the advances ~n technology m eqmpment The D~stnbution Dlwsxon has conUnued to train all employees through the Department of Labor registered apprenucesh~p program This program fulfills all OSHA reqmrements while prowdmg our Utihty Line Techmclans w~th the techmcal slolls needed to operate and maintmn our d~stnbuUon system m a manner that w~ll maximize our compeuUve posture Th~s dtws~on ~s also dedicated to the continual educaUon of its employees ~n electrical concepts and theories and ~n personal safety Electric Substations/Fiber Ootics The SubstaUon/F~ber Optic D~wsxon is responsible for the operation and maintenance of the c~ty's nme eleetnc substaUons, four TMPA Interchanges and the fiber optic network The division performs h~ghly techmcal work m all areas of substaUon and fiber opUc design, operation, and maintenance Major maintenance projects include transformers, breakers, D C control systems, protecuve relay systems, bmldmg maintenance, fiber opuc repan- and trouble shooting and station ground care Cap~ta[ Improvements projects include 15 KV breaker converslons from air to vacuum for rehab~hty and lower maintenance cost, 69 KV breaker upgrades from o~I to SF6 gas to add more rel~ablhty and lower mmntenance cost, and fiber optic new installations, Wxth new technology, trmmng and schools are necessary for all substation personnel Each type of eqmpment has its own operation and maintenance reqmrements With the emphas~s on cost, the rise of new technology m maintenance la substanual The technology reqmrements are met by updating old test eqmpment and purchasing new equipment This d~v~s~on ~s also dedicated to the continual educaUon of ~ts employees m electrical concepts and theories and m personal safety The dtws~on ~s dlwded into three areas These include maintenance, operauons and fiber opucs The maintenance group ~$ responsible for all maintenance of nme c~ty owned substations, and the minor maintenance of tho four TMPA Interchanges The operations area ~s rasponmble 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 pa~r control cable, hlglfly techmcal testing and programming and trouble shooting The fiber optic's area consists of design, maintenance and mstallauon of the fiber optic network Fxber optics is the new technology for tho City of Denton This d~v~sxon has installed fiber to mneteen city braidings This number will increase as our f'~ber network expands w~th more options The fiber optic network increases the commumcat~ons ~ns~de a department and between d~fferent departments City of Denton RFP Utthty Department Management Study The Electric Engineering dlwslon's pnmary responslbdlty is to provide quahty engmeenng to meet Departmental goals and customer needs ~n a professional, cost-effecuve and timely manner The primary areas of respons~blhty include design construction, momtonng, system planning and system analysis Under design and construcuon, staff designs work for lmplementauon by electric dxstnbution division construcuon crews Designs normally included cost esumates, area mapping, load analysis, conductor selection, protective dewces, structure and assembly standards, and field data Review and update spec~ficauons 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 automatton, and hfe cycle traclang of items of plant a Load forecast predtcts future electrical load growth by ut~hzmg econormc and trending of h~stoncal growth patterns for industrial, commercml and residential customers b Customer problems are handled through a power quahty team that represents the d~v~s~ons of Englneenng, D~stnbutlon, Substations, Commumcations and Metenng The team performs site VlS~tS to customers' faclhties for data collection and offer assistance c Load distribution to study new and exisUng loads location and recommend required system mod~ficattons Dlstrtbutlon automation prowdes 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 eqmpment The model takes into constderation light and heavy load cases c Performs fault analysis to support system devices coord~naUon and eqmpment ratings d Reduce losses, load dlstnbutton, capacitors placement and transformer load management Each Engineer is assisted by a techmc~an and or ~ntern to provxde techmcal assistance In the planmng, design and construction, and analysis functional respens~b~hties The Electric Metenng Organization is engaged ~n the da~ly operations of providing customers with electric and water service connections, disconnections and customer support operations AAA049D4 f'tn City of Denton RFP Utihty Department Management Study In the projected 1996-97 Budget, the electric turn-ohs and ~e water turn-ohs are projected to are projected to be approydmately 2,400 be approximately 22,230 The ever-growing need to provlae customer~ w~th quahty electric service has prompted more training ~n such areas as energy reformation, demand side management, power factor, power quality, and harmonic detection and their effects on the customers business and energy use The Electric Metenng Division m 1996-97 Flsca/ Year will test approximately 2,885 electric meters for both maintenance and meter test program The goal for the 1996-97 F~scal Year will "target" large commercial and industrial customers for total testing of all metenng equipment Funds are allocated for time and equipment involved for "Power Quahty~ studies and assistance for commercial and industrial customers Continual training m today's high standards of excellence is a must for the electric metering organizations The organization's goal remains steadfast in providing the City of Denton customers w~th courteous, fast and quality service, presently and m the future The Division works to maintain a cost-effective operation for both the customer and the organization without sacrificing quahty or safety This Division's eight members are responsible for reading 29,687 electric meters, meters and 18,294 water meters, and $0 sewage meters every month, for a total of 618,504 per year Each Meter Reader is responsible for reading approxamately 7,363 3,511 demand 88,336 meters per year meters per month, or The meters are assigned to 21 cycles All 21 cycles must bo read and billed each month All meters must he 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 readmg/btlhng The Customers' bills are made up of electric, water, and sewage usage The Solid Waste charges are flat rated for residential customers, whtle commercial customers are charged by dumpster size and number of days they are scheduled for pickup This Division is responsible for mamtmmng the Readmg/Btlhng Schedule to allow the cash flow of the Utility charges to remain on a consistent basis The Customer Information Division serves the pubhc 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 in order to fantl~tate ut~hty objectives The Communications and Specxal Projects Coordinator (C&SPC) also represents the utility department m 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 utihty-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 AAA0~9D4 £m -18- C~ty of Denton RFP UUhty ~ent Management Study The materials used to educate uUhty customers are advemsements in the local media, news releases, cable TV spots, bill-stuffers, and mformaUonal newsletters These materials are written, designed, and produced by this division We are also responsible for the placement of matenals with vanous media and for the evaluauon of communlcauon methods used On average, 220 educational materials are produced yearly The diwsion also uses public programs such as presentauons and parUcipaUon in community groups and the school distnct upon request Community events range from parUcipatlon m Earth Day to the Chamber of Commerce Expo Last year thm'y pubhc programs were completed The division helps plan m-house projects such as Open House, NaUonal Dnnlong Water Week and Pubhc Power Week On average, 1,500 customers are assisted yearly with quesUons about electnc and water conservation, h~gh-bfll complaints, and general service and bxlhng problems Residential energy management programs include performing 150 energy audits yearly and worlong w~th uUhty customers and HVAC dealers on the apphance rebate program This division also conducts commercml audits and will be worlong closely with other divisions on a commercial marketing program. Last year 441 rebate apphcaUons were processed The division tracks montlOy energy use and cost data for all City facilities and maintains a lending library with current lnformauon about bmldmg practices, apphance efficiencies, EMF, and other related areas as well as weather and degree day data This division has video producuon capab~lmes which is uuhzed for m-house training programs, adverUsing and educaUonal materials, and presentauons The d~vmon also takes on "special projects" for other city departments The &ws~on also admmisters the uuhty residential energy management programs This function consists of assisting customer w~th questions about conservation and efficiency, high-bill complaints, energy audits and the appliance rebate program The dtvmon tracks energy use and cost data for all City fac~lmes, maintmns a library with current lnformaUon about building pracUces, apphance 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-medm presentauons for the Utihty and other Departments THE WATER SYSTEM The Water System provides retml water service to all customers located within the city limits, as well as wholesale water service of approximately 1 1 MGD to the Upper Tnmty Regional Water District The water dlstnbutaon system consists of 295 miles of water mares, 7 million gallons of ground storage in four tanks, and a 36 million gallons of elevated storage m three AAA0~gD4 fin 19- City of Denton RFP UUhty Department Management Study tanka. The City is m comphanco with all State and Federal water quahty reqmrements and currently rated as a "superior pubhc water system" Denton has 4 86 MGD of water rights from Lake Lewlsvllle and 19 76 OD of water n hts fr Lake Ray Roberts Denton also nurcha to serve" a ,- ses 500,000 gallons g om ho. ,~ ..,.,~amoun. t to mmntmn the future o,-.,,.,o ,~ ...... per. day from Dallas as a "readiness · ,,o ,o ~v~u~ avmiable fro,,, ,'~-- - ~.-,-,,~ ~tsf a~OlRonal water nu,.oho.-. ,~ . , · -,,, ~opor geservolr in Ea r .... ~ uenton mso Regional Water District st Texas m Partnership with the Upper Tnmty Denton mamtmns and utilizes its groundwater well system (2 $ MOD) as a contingency supply m the event of an unusual disrupt~on in the water treatment and/or transmission system Water Admimstrat~on provides for the direct~on and genera/ supervision of all water system faciht~es and operations These facllmes include water treatment, water dlstnbut~on, metenng and repair and laboratory funcUons Other respenslbflit~es include capital improvement planning, grant admlmstration, financlal and operational repomng, Board and Council agenda prepamtlons, infrastructure rewew for development, and ha~son w~th local, state and federal regulatory sa~t.h.~nt~es and other pemes associated with Denton's Water UUhty The sin le most crv~ce is to act as the hmson between the g portant operating/planning departments thereu ..... Pub!lc Utflmes Board and the vann., operataons, momtonne the ,~ro ...... ~?' ~ransiaung me Board's pohc~es into o ~- ss,aa ~,1 operations, and a Drlsln~ s, ]:l~o.el ~t t P_ o th_ ...,~u ~ SUCh progress Water Department Long-Term Strategies include 1 ¢onUnue to own, retrun and defend Denton's current water rights and cooperate w~th the Upper Tnmty Regional Water Dmnct (UTRWD) in the future raw water reqmrements, either through paruclpaUon with UTRWD or by the purchase of raw water from UTRWD 2 Continue to own the community water treatment faclhUes, and consider wholesale treated water purchases from UTRWD only on an interim basis prior to phased construction of plant expansions or new plant construcuon 3 Offer a minority eqmty ownership to the UTRWD m the propesed Ray Roberts Water Plant on an equal cost bas~s, or offer long-term wholesale contracts to the UTRWD provided Denton customers are not burdened by such wholesale contracts 4 ¢onunue effective and efficient treatment of the community's water achieving regulatory compliance of a "superior" water system rating and all water quality cntena. 5 ¢onUnue to recognize and honor contractual interim water supply and long-term water trans~rtaUon obhgauons with the UTRWD m water and wastewater projects, while at AAA049D4 - 20 - C~ty of Denton RFP Utthty Department Management Study the same time, proceeding to momtor quality and supply and demand factors that may influence mod~ficauons of these obligations 6 Develop and maintmn a water dxstnbuuon system that balances opumum service provislons with the cost of service The main functions of this Division ,s data collection, project management, study and system analysis, techmcal support and mapp,ng Data collection is mainly a function of our field techmclans and our interns Project management and study and system analysis are accomphshed by staff engineers w~th assistance from the techmc~ans Staff provides project management services for over $3 4 million of capital improvements for the water uUhty Techmcal support ~s provtded by the enUre staff Mapping is the main function of the GIS Technician who recexves assistance from other staff techmc~ans Design of water/wastewater hnes is done by the Cxty's Public Works Eng~neenng Division with rewew by the Water/Wastewater Engmeenng staff Most water/wastewater lines funded by the utdity are contracted to private firms with mspecUon services provided by the City's Pubhc Works Inspection group The Division's primary responslbihty is to produce sufficient quantities of safe dnnlong water to satisfy the community's demands on a conunuous basis throughout the year The specific areas of responsibility include raw water supply and transmission, treatment, storage, h~gh service pumping and pressure maintenance (booster pumps and elevated storage) The diwslon ~s also responsible for the operation and maintenance of the ground water wells, storage tanks and booster pump stauons located at the water well sites within the dlstnbution system These systems need to be operated and maintmned on a 24 hour per day, 7 days a week basis to insure adequate supply and to preserve and maintain the pubhc 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 d~ctated that the diwsion be managed, operated and mamtmned with a much h~gher level of techmcal and professional competency than was envlsxoned five to ten years ago The primary goals of the dxwslon which remain the focus for the orgamzation's efforts are as follows 1 Mmntain finished water quality at the h~ghest level possible with exisUng facilities and available resources 2 Meet all State and Federal Standards for fimshed water quality and exceed these to the maximum extent possxble where technologxcally possxble and economxcally prudent 3 D~rect resources and staff effort to improve system rehabthty and to minimize the potential for service mterruptton or loss of pressure maintenance within the dlstnbutlon system City of Denton RFP Ut~hty Department Management Study 4 Provide continuing education and trmnlng opportumties for all employees to promote and encourage continuous self-Improvement, upgrade pubhc's trust and confidence m the cer~ficat~on levels, and to maintain the ~mportant role entrusted wlthm our d~v~slon The division requires that all non-clerical staff obtmn and mamtmn ce~fication m surface water treatment from the TNRCC The plant staff ~s organized Into the following functional subgroups Supervlsory/Office/Clenca/, Plant Operauons, Plant Mechanical Maintenance and Plant Electnca/Maintenance Each functional subgroup has a supervisor who ~s responsible for achieving the goals and objecUves outlined for their area This Includes budget responslblhUes, staff training and development, resource allocation, manpower deployment and specm/project assignments This organization's primary responsibility is to install new meters and ma~ntmn the water meters that service the Denton customers They ma~ntmn an accurate system for an eqmtable d~stnbution of cost to all customers The Division will change out 1,800 water meters in 1996.. 97 ranging in s~ze from 5/8 x 3/4 tach through 2 tach All water meters ar~ scheduled to be changed every ten years m order to mamtmn 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 m size from three tach, four inch, and one slx tach in 1996-97 The Division has an ongoing testing and repair program on all large water meters Three tach through eight inch water meters are scheduled to be tested and calibrated once each year F~eld tests are performed on ail large meters that ~nd~cate any problem Although the Division has used outside repmr services m the past, they are now testing and repmring m-house The Division responds to all complmnts from our customers and helps them determine the nature of the problem They also assist Customer Service w~th reformation regarding any complaints Customer Service depends heavily on th~s D~v~slon to assist them when handling problems and b~llmg disputes Water Distributioq The primary responslblhty for Water Distribution ~s to mamtmn 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 ma~n has ruptured, and to provide such restoration as qmckly as possible Other services prowded by th~s d~v~slon include hydrant and valve mmntenance, fire flow testing, and water ma~n installation The water d~stnbut~on system ~s comprised of approximately 1,716,000 feet of water mains, 10,000 mum hne valves, 2,400 fire hydrants and 34,000 small valves which serve as control mechanisms for service connections AAA049D4 l~m City of Denton RFP Ut~hty. Depan'm~t Management Study TIlE 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 Connth and the Upper Tnmty Regional Water Dmtnct The collecuon system consists of approximately 344 miles of gravity wastewater lines, 15 miles of force mares, 3,600 manholes and 18 lift staUons W~tewater Administration Wastewater Admimstrat~on provides for the direction and general supervision of ail wastewater system facilities and operations These famlit~es include water reclamation plant, wastewater collection, wastewater engmeenng, and laboratory funcuons Other responsibilities include capital improvement planmng, grant admlmstraUon, financial and operational reporting, Board and Council agenda preparations, UUhty review of subdivisions and lmson with local, state and federal regulatory authonUes and other parues associated with Denton' s Wastewater Utihty The single most important service is to act as the hmson between the Pubhc Utilities Board and the various operating/planning departments thereby translating the Board's policies into funcuonal operations, momtonng the progress of operauons, and apprising the Board of such progress 1 Support the level of participation in regional wastewater system development with the Upper Tnmty Regional Water Dmtnct (UTRWD) that wR1 result m the most cost effective provision of wastewater services to the Denton community 2 ConUnue to study wastewater treatment plant options, optimize joint part~cipaUon with the UTRWD, and mmntam majority ownership of the wastewater treatment plant with clear rules of management, fiscal responsibility and present and future obhgat~ons Continue to ehmmate all dry weather system backups and overflows, minimize overflows in high exposure azeas during rmnfall events and systematically rehabilitate the collecuon system to prevent infiltration and inflow 4 Develop and maintain a wastewater collection system that balances opumum service provisions with the cost of service 5 Support the beneficial reuse of wastewater biosohds and effluent through programs that develop and mayamize 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 W~¥~'tewater Treatment Plant This dtvimon's primary responsibility is the effective treatment of approximately four billion gallons per year of wastewater and the operation of 19 hftstat~ons. State and Federal permit limitations require consistent effluent quahty of l0 ingle BOD, 15 ingle TSS, 3 mgle nh2 C~ty of Denton RFP Ut~hty Depamnent Management Study Speofic areas of respons~bihties reqmnng 24 hours a day, 365 days per year operaUon include wastewater treatment and disinfection, hftstation operation and maintenance and biosohd management Stringent State and Federal regulatory requirements necessitate a h~gh degree of techmcal competency The primary goals of the division whxch remain the focus for the organlzauon 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 momtonng systems at all l~ft stations 3 Prowde assistance to other dtvistons to help resolve environmental problems or issues 4 Continue the development of a partnership with the Umverslty of North Texas and Texas Woman's Untversity to provide multi-dlsctpllnary approaches to the resoluUon of local environmental problems. The TNRCC requtres that the Water ReclamaUon Plant be operated by a chxef 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/Clerical, Water ReclamaUon Operauons and Btosohds OperaUons Each functional sub-group has a supervisor who is responsible for achieving the goals and objecuves outlined for their area 1Vl[unieioai Labornt orv/Pretreatment These divistons' pnmary responstb~httes are to provide analytical and environmental support to other dtws~ons wlthtn the Department of Utilmes The speoflc areas of respons~blhty include analytical testmg for permit comphance for water reclamation, water production, water d~stnbution, electric production and the Landfill The laboratory also prowdes analyucal testing for Pollution Control and Abatement, Industrial Pretreatment and performs bactenolog~cal testing for pubhc and private water systems The Industnal Pretreatment Program ts responsible for the ~mplementaUon and enforcement of industrial pretreatment regulations, polluuon abatement acUv~ties, sepUc system and water well permRting acttvtties, landfill groundwater momtonng issues and to provide other utthty d~wstons assistance wtth environmental problems and tssues The primary goals of these dtvislons are 1 To prowde all analytical testing for the Department of Utilities at a competitive price w~th private analytical laboratories 2 To maintmn compliance wtth all state and Federal environmental regulatxons C~ty of Denton RFP Ut{hty Depamnent Management Study 3 To protect the wastewater system through the effective implementation of the Industnal Pretreatment Program 4 To provide conUnumg education and training opportunmes for all employees Wastewater Collection The pnmary responslbihty for the wastewater collection operation is to mamtmn the continuous flow of wastewater to the Wastewater Treatment Plant Our single most important funcUon 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 tins 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, 88,9'75 feet of force mains, 18 lift stations, 3,600 manholes and 15 major creek crossings Wastew,~ter En_olneerin~ Water and Wastewater Engineering consists of two divisions There are two engineers, one manager of construction projects, one techmclan and one intern m Water Engineenng There are three engineers, give technicians and two interns in Wastewater Engineering These Divisions do not operate as separate divisions The Divisions are operated in a matrix fasb, on, where people are used according to their skills, ability and work load. The organizational chart shows how we report for adnunlstrative purposes All employees report directly to the Engineering Admimstrator, except for two Engineering Technician lis and an Engineenng Technician I, who report to an Engineenng Technician III The main functions of these Divisions are data collecuon, project management, study and system analysis, technical support and mapping Data collection is mainly a funcuon 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 uuhty tn 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 techmclanS. THE DRAINAGE SYSTEM Drmna~ O_ueration & 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 AAA0491}4 fl~ - 25 - Ctty of Denton RFP Utthty~ Department Management Study Division Is responsible for closing the flood gates, placing h~gh water barncades on city streets and for mosqmto 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 drmnage inlets and some 338 culverts and 146 bridges Three quarters of the city streets are curb and gutter streets that require sweeping to prevent bmldup of sand and debris m the storm sewer inlets Slx flood gates must be closed dunng heavy rmns, 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, detenorated and designed vath sharp angles m many areas The hned channels are overall m average to poor condtUon w~th a few areas m desperate need of major repair The earthen channels are tn generally poor condiuon 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 drmnage of storm water runoff, inhibits or prohibits maintenance activities, hmlts access to drainage faclht~es and prevents the use of equipment tn some areas Flooding is minimal m and around the drainage channels when they are not blocked by debns However, there been several documented cases of localized flo~xhng of private buildings and property from inadequately designed drmnage tn developments THE SOLID WASTE SYSTEM The Solid Waste Department provides solid waste collecuon, disposal and recycling services to restdents and businesses of Denton The Department serves the Denton commumty tn a professional cost effecUve manner, with a slate of services destgned to meet customer expectaUons and need Solid Wsste Administration The Department's Solid Waste Admmtstrauon Division provides supervision and admlmstraUve support for the Department's Dtvlslons, which include Residential and Commercial solid waste collections, disposal, and recycling The Division is also responsible for providing secretarial and clerical support for the Uuhty Department's Public InformaUon Office The long-term strategies for the Department include 1 Conunue to suppor! a city-owned and operated landfill for the Denton community, joint ownership of the landfill facility is not supported at this time AAA049D4 r~ - 26- City of Denton RFP Uuhty Department Management Study 2 Offer the use of the expanded landfill site to outside entities as long as the outside entities follow smular recychng pohctes as Denton's 3 Comply with the guiding pnnclpals identified m the Solid Waste Master Plan regarding costs, flexlbthty, economic development, r~sk, edueational opportumties and environmental stewardship 4 Promote flextbihty in recycling faclhty development in an effort to systematically and cost effectively provide recyclable materials processing to the Denton community 5 Encourage the development of public educauon programs to influence customer attitudes and disposal habits over the long term 6 Implement the first five years of the Solid Waste Master Plan programs with emphasis on the possible benefits of a public/private partnership 7 Encourage development of commercial recycling act~vmes as a pnortty recogmzmg that the largest waste diversion and revenue potential exists with commercial customers § Conunue 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 Ut~hty Board Solid White Residential Collection The Residential Collections Division provides for the removal of ail sohd waste from each residential unit in the City CollecUon of regular solid waste and unusual accumulauons is provided twice weekly while yard waste is collected on Wednesdays only Appliances and large household items are collected within 72 hours of request Dunng a typical year, these department will make over 1 6 million regular sohd waste collecuon pickups, over 800,000 yardwaste collection pickups, almost 1,000 appliance collecuon pickups, and an average of over 15,000 large household item collection pickups ~olid, Wn.~te 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 collecuon services along City right-of-ways The Division operates three side load contmner 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 -27 o Cxty of Denton R~P Utthty Department Mana/ement Study Although the Division conducts tis waste collection activities around the clock, tt 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 mutes requmng 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 operauon Individual drivers are encouraged to analyze service delivery options and alternatives accruing to individual customers on their routes and to inform their superwsors of oppormmties to ups~ze containers This reduces the number of containers in the field and maximizes route collection tonnages Solid Waste Disnosal/Landflll The Solid Waste Disposal Dlvlston pwvldes for the operauon 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 apphance disposal program and tub gnndmg operations The landfill's activities are regulated by the Texas Natural Resources Conservation Comrmssion 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 ume for users, exclude prohibited materials, compact waste thoroughly to conserve space, and comply with all Texas Natural Resource ConservaUon Commission rules and regulations Operating hours of the Division are 7 a m - 4 p m, Monday thorough Friday, and 7 a m - 3 p m on Saturdays Dunng 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 exisUng 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 properUes The Recychng D~vmon 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-materials public drop off sites, thirteen public newspaper drop off sites, the collecUon of office paper from municipal facilities, the school distnct, and Horizon Management and MHMR, the weekly curbside collection of yard waste for the ReclamaUon Plant's centralized compostmg, six used off and oil filter public drop off sites, commercial cardboard collections from both dumpster and compactor customers, and the Cable Swap program. City of Denton RFP UUhty Department Management Study The Recychng Coordinator's acuvit~es include the overall adnumstrataon and management of the Division's programs. Primarily, this includes the plamung and execution of expanded recycling serwces, negot~atang commodity pnces with vendors, maximizing the programs' publicity m the Denton community, msunng the Umely collecuon and mmntenance of the D~vislon's public drop off sites and regular recycling collecUon routes, sohciung residenUal and business part~cipauon m recychng programs, providing a full range of recycling related mformataon to the community, and mamtmmng recycling databases regarding collectaon tonnages, costs, and revenues I~ql~ANCIAL ADMINIS~ON Financial AdmlmstraUon is pnmanly responsible for the coordmauon, analysis, planning, preparation, reporUng and documentauon of financial related actaviUes In the Uullty Department It also provides supervision of the Electric Customer InformaUon Division, which supports the entire utility in the area of pubhc mformataon and educaUon The Financial AdmmistraUon funcUon is directly responsible to the ExecuUve D~rector of Utaht~es, but is not organized as a separate division for funding purposes Financial AdmmistraUon personnel and act~viUes are funded primarily by Electric, Water and Wastewater admmistrat~on divisions The financial group consists of one uuhty Financial Administrator, one Utahty Rates Admimstrator, one Financial Analyst, one Adrmmstrauve Assistant, one Computer Analyst, and one Admimstrat~ve Intern Three are funded by Electric, two by Wastewater and one by Water Funding special acUvmes (travel, trmnmg, etc ) normally depends upon the uUhty receiving the pnmary support Major coordlnaUon responsibilities include such financial projects as the Five Year Capital Improvements Plan, and annual Operaung Budget, which cover all Electric, Water, Wastewater, Solid Waste Departments plus all of Fleet Services except the Motor Pool Financial AdmlnlstraUon is heavily involved In overall financial planning and prepares the five year financial pro forms that supports decisions on long-range financial strategies and goals This group also provides the primary uuhty coordlnataon w~th other city offices involved in financial activities, including accounting, finance, customer service, reformation services, economic development, etc In addition, the group provides general financial assistance to personnel at all levels of the uUhty organlzaUon Financial analys~s act~wttes include both recurnng and ad hoc programs and projects The Rates Administrator is responsible for conducting periodic uUlity rate cost of service and r~te design studies for four utllmes Uuhty rates are designed to accommodate individual retml customer classes, separate and unique wholesale contracts, competat~ve environments, and other special s~tuatlons Many other rate analy~s or rate compa~son projects or tasks are accomplished to support city, utility and customer needs on a recurnng basis Speclal analyses are prepared in support of such long range act~vxtles as the Sol~d Waste Master Plan, volume and revenue AAA049D4 rll~ City of Denton RFP UUhty Department Management Study forecasts, financial impact of various funding options, costs of new plant construction, debt costs, financial ratios, etc The Financial Analyst posiUon 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 uulity management and Public UUhties 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 utihty with bllhng data or rate options Analysis and review support is provided to insure quahty financial documents such as the CIP and operaung budget Admmlstrauve support is also provided for Water, Wastewater and Drmnage The Adnumstrative Assistant position provides general financial and admmistraUve support with primary emphas~s on Electnc activities A major task involves CIP and operating budget software development, trmnmg, assistance and documentation This posiUon provides financial and admmlstraUve support to Electric personnel in prepanng budget documents under both FERC and object code formats, as well as assistance with current year revenue and expense issue Other major tasks include mamtmmng a detmled 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 Admlmstratlve Assistant also provides general administrative support to the Electric Department The Computer Analyst posiUon provides general assistance in support of financial and administrative programs, with emphasis on computer software apphcauons Examples include design of CIP and budget summary documents, preparaUon of graphs and charts for the Annual Report or Public Utahty Board presentations, and documentaUon of various financial acUviUes This posmon also provides basic assistance to utility personnel on software used for development of the CIP, budget, vehicle plan, etc The Intern position, located in Electnc Administration, Is used to assist m the accomplishment or documentation of various financial or administrative activities It Is often used to support special requirements or projects that occur throughout the uuhty FLEET SERVICES p '' Parts and Fuel Division is responsible for admimstenng a $100,000 voluminous inventory to the Vehicle Mmntenance Divisions This diwslon, worlong synergistically with the Vehicle Miuntenance Division, affects turn-around repair time for customers by promptly locating and retnewng 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 par~s ts 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 City of Denton RFP Ut~hty Department Management Study For FY-95, 520,775 gallons of fuel were sold 334,338 gasohne, 170,293 d~esel 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 Mmntenance Facfltty 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 esUmated 10% below industry-standard rates For FY 97, divmons have been instructed to budget $1 05 per gallon of fuel ProJected FY 96- 97 revenues from c~ty sales Is $526,402 and $80,000 from Span sales Span's usage has increased with the addlUon of two 38-passenger buses received in FY 96 These buses were purchased by the City of Denton with funding from a Pubhc TransportaUon Federal Grant and will be maintmned by Span Addlttonal buses may be added m the future These buses will be included on the Equipment Management Inventory System monthly which is sent to Span and ~temlzes each velucles' fuel consumption and charges The City's fuel consumpuon is combined with their vehtcle repmrs onto a monthly departmental report sent to each departmental supervisor The organizat~onal structure is comprised of two office clerical and two service maintenance employees. The Fleet Supenntendent oversees the organizauon but is not funded through the Parts and Fuel Budget C~ty of Denton RFP Utd~ty Dep~ment Management Study AAA(MglM lin - 32 - 1997- 21X)l CAPITAL IMPROVEMENT SUMMARY ----- ($ x loo0) ELECTRIC DEPARTMENT 97 $8,521 "'~ ~ 1,945 ;e 'Ja~ 4,508 ~ e'~,4 73 :,. o~,4 S0 o o0~ 98 32,969 o04~ %150 `1~,~ 31,769 e~l~,4 70 ~2o~ 0 oo0~ 99 4,640 82`1,4 1,160 ll,~e~ 3,449 ;ae~ 41 `1e'n~ 0 oo0~ 00 5,311 o~,~ 1,600 ;`1 ,m~ 3,678 ;.#~ 33 `1a ee~ 0 oo0~ 01 5,088 1~,4 1,900 ;~ ,~e~ 3,462 23.~ 43 `18 e~,4~ 0 oo0~ $64,656 -' $7,448 $46,861 '~' $260 $0 WATER DEPARTMENT 97 $4,0g0 `14 ~e~ 2,660 `1a ~,1,4 1,327 ~e,4 94 `1e,m~ 50 oo0~ 98 8,207 ;e~ 6,66~ ~o24.~ 1,43~ 248~ 104 `18a~,4 0 oo0~ 99 4,805 `1211.,~ 3,$6~ `1e ~.,~, 1,125 `1eaa~ 118 ;e ~4,4 0 oo0~ 00 4,562 `182~,4 3,470 `18o0~ 960 le.#,4 122 21~ 0 oo0~ 01 6,428 u #,4 6,317 24 ,q,4 978 `18 ;e~ 136 aa ~a~ 0 o o0,~ $28,082 $21,668 $5,822 $671 $0 WAWrEWATER DEPARTMENT 97 $4,856 lee,w, 3,828 `1~ ea~ 1,256 ao&~4 50 20o0,4 $0 oo0,4 96 6,028 ;o ~ 6,090 '* ~ 886 `1,1 '1~o 50 2o 2o~ 0 o 0o,4 99 8,443 aec,4 7,016 o0~ 1,378 aao~,4 80 2oo0~ 0 oo0~ 00 7,84~ ~eee~ 6,173 .2o~ 1,622 ~.ee~ 50 ~oo0~ 0 oo0~ 01 2,0231 ee~, 890 ~ea~ 1,091 `1;,m~ 50 ;oo0~ 0 oo0,4 $29,203 $22,691 $6,262 $260 $0 ~,OLID WASTE DEPARTMENT 97 $6,386 ~ee~ $4,978 #~ $335 ~;~m~ $76 `1o0o0~ $0 oo0~ 98 2,870 ~.a';~ $2,412 23 ,~,4 $458 2,,1,e,4 $0 oo0~ 0 o o0.,~ 99 988 eoe~ $700 eeo,4 $256 `11 os,4 90 o2o~ 0 oo0~ 00 2,488 aeal~ $2.200 2'~.-,4 $256 '~eo.w, 20 oo0~ 0 oo0,4 01 647 44e~ ~0 o o0,4 3647 a ,e~ 50 o o0,4 0 o $12,279 lo0o0,4 $10,256 $1,916 `1ooo0,4 $76 $0 FLEET SERVICES / OTHER DEPARTMENT 97 $1,027 Mea~ 0 oo0,4 27 ae ,le~ 0 oo0,4 1,000 ~o0 o0~, 98 31 2#,4 0 oo0,4 31 4`1#~ 0 oo0,4 0 oo0~, 99 6 o ,17~, 0 o 00,4 5 e ~ 0 o o(w, 0 o o0~, 00 3 o 2i,4 0 o o0,4 3 4 oe~ 0 o 01 8 o ;4,4 0 o o0,4 8 `1o i'~,4 0 o o0,4 0 o 00,4 $1,074 ';o0 o0~ $0 $74 '1oo o0,4 $0 $1,000 UT $125,194 $62,113 $60,956 $1,166 6/10/96 13 48 _ pq - UTILITIES lo/o2~ EXPENDITURE SUMMARY lo 02 AM 1996-97 1994-95 1995.g~ 1995-96 1996-97 ACTUAL BUDGET Es'nMATE TOTAL Electric De~ $68 128,050 $73,533 272 $72,442,623 $75 225 883 Water Del3a~lent 13 505,652 14 64~ 119 14 414 737 15 021 382 Wastewater D~nt 9,033,427 10,395 881 10,356,427 10 343 596 Solid Waate De~ent 5,272,305 6 638,776 6,128 8~5 7 100 938 Su~ota} Lltil#~ g5.~39.449 ~ ~ 1 o7.691.7~} Fleet Serwce~ Defla~ment 2,073,33~ 2 412 83~ 2 410 837 2 440,622 Drainage (~Nater ~attment) 354,117' 400,3~2 3~,063 499,707 Total Utility Exl3ermee ${~,g~9,449 $102,217,04~ $1¢3~3424~ $107691,799 With Fleet Servi~ea & Drmnage $98,386,902 $108,020,20~ $106,1 t5,382 $110,632,128 UTILITIES EXPENDITURES BY CLASSIFICATION 1996-97 1{~-97 Exm~maa ACllJAL BUDGL=T EBTIMATE TOTAL PemonaJ ~e~ 11,759,048 13,2{3~,177 12 83~,475 14 102 285 Sup~i~ 1 917 750 2 143,~ 2 104, t50 2 194 244 Pumlla~e Power 47 86~,70~ 50 416,713 50,7'18,814 4~ 29~ 024 Mainteflanc. e 3,50~,9~ 4 231,8~4 3 8~7,638 4 635 985 Secvk=ee 5,671,796 7,343,012 7,396,131 6,16~,3~6 Insu~eJ~e 189,8(3~ 183,716 183,127 189,741 Sund~/ 1,080,267 1 242,500 503,050 73~ (300 Lan~ 0 20,0(30 0 0 Fix.<l ~ 5,613,700 6 77~,971 6,038,767 7 280 016 Su~otm audg~ ~ ~ as.~77.0~ e~.~.aa7 ~ Mmcelleneeus I X~o~M Tratl~er F.x~en.~ 18,011,190 19,538,~57 19,426,785 24 049 488 Total Utility I~ $~ 938,449 $105,217,048 $102,342 482 $107 691 ?99 1994-95 1995-96 1995-96 1996-97 pERBONNEL ACTUAL BUDGET EBT1MATE TOTAL Servrce/Mmntenance 104 00 103 00 104 00 105 00 Offi~e/Clen~ai 19 00 20 50 21 00 20 75 Tee hmcai/Par~orofeaaionai 128 50 133 50 137 50 137 50 Profa~K)nai 26 00 29 00 28 60 30 00 Managament/SuDervi"~on 40 75 38 99 37 99 38 79 Temloorary/Sea~ollal 17 16 16 91 15 91 16 41 TOTAL PERSONNEL 335 41 341 90 345 00 348 45 ELECTRIC EXPENDITUCIES BY CLASSIFICATION 1996-97 1995-96 1995-g~ 1996-97 Exoenses ACTUAL BUDGET E~T~MATE TOTAL Personal Serwces $5 648 552 $5 308,903 $5,255 740 $5,698 472 Supplies 887 364 881 620 931,107 875 277 Purchase Power 46 928 138 49 366 100 49 6~4,4~8 47 lg6 020 Mantenance 1,734,919 2 349 851 1 840,072 2 057 258 Sen~k~e~ 1 130,103 1 591 908 2 044 875 3 883 666 Insurance 123,823 117 197 116 608 126 676 Sundry 918,174 1 100000 523,550 568000 F~xed Asaet~ 2,271,470 3,687 744 2,993,803 4 038,816 Su~otal Electric Budgel Exlxlna~ Transfers 9.4as. S2~ 9.22a.ase a.oa2.4m ~,T~I,~ Total Electric ~ $58,128,065 $73,533,273 $72442623 $75,225,883 1994.,~ 1995-9~ 199~-g~ 1996-97 PERSONNEL ACTUAL BUDGET ESTIMATE TOTAL Sewi~alMa.~ 12 00 12 00 12 00 13 00 Offlce~lerlcal 700 900 1000 1025 Technir.,~JP~on~ 84 O0 84 OO 86 O0 85 O0 Profmioflal 14 00 15 O0 15 80 15 00 Temlxxaty/~ 6.50 6.00 4.50 6.00 TOTAL PERSONNEL 143 75 146 00 148 10 149 25 ELECTRIC EXPENDITURE SUMMARY 1996-97 l o 02 AM 1994-9~ 't 995-98 199~9~ 199~97 ACTUAL OUDGET ESTIMATE TOTAL Production 50,425 419 53,075,368 53,024,653 51 723,613 Ore,arch & Ol~ratio~ls 0 79 370 161,684 365 571 Otstribution 5 740,393 6 847 ~ 6 249 125 7 142 947 Sub~taflon8 700 605 926 8(~ 976 128 1 140 613 Engineering 586 254 642 06~ 585 810 462 337 Metenng 791,828 972 408 968,06~ I 023 687 Metedng Reading 290,859 317 167 316,404 331,925 Customer InformatJ~l 160,446 224 987 256,158 297,326 Demand $~e Management 299,722 370,748 239,289 0 Customer A(;~ount~ 1,102,828 1 071 306 1 037550 1 048,142 Admin~tk)tt 7 668,4.33 6,411 936 8,306,410 11 249.176 Communicatfoa 361 278 591,376 323,427 440,646 Total Electfffi ~ 68,128,06~ 73633272 72,442,823 76226883 WATER EXPENDITURES BY CLASSIFICATION 1996-97 ~ o/o;/;e UTILITY FUNDED lo 02 AM 1994-95 1995-g6 1995-96 1996-97 Exmns~ AI~TLIAL BUD(~'T ES~MA~E TOTAL Personal Sewk=e~ $2,051,636 $2 362 727 $2 200,160 $2 434,731 SUl~Olies 545,272 623,954 638 769 655 297 Purchase Power 512 133 641,613 641,613 669,822 Maintenance 867 036 922 551 952 874 1 451 155 Servica~ 3,360 402 3,748,046 3 667 395 634,484 Insurm~e 17 515 18 863 18,863 17 472 Sun~ry 2 908 22 500 22 500 23 Q00 Land 0 0 0 0 F~xed Asset~ 1 637 601 ~ 556,306 1 517 924 1 370,700 Subtotal Wata~ Budget Expense A.~.?~3 9.8~.sao ~ ~ Mi~e#aneou~ / 04~5(3M 4 510 949 4,752,529 4 754 8~3g 7,765,321 TOTAL EXP~NSE$ $13,50~,6~2 $14 649,119 $14 414 737 $15,021 382 WATER DEPARTMENT lO/O2/96 EXPENDITURE SUMMARY 1996-97 1994-95 199~-g6 1995-9~ 1996-97 DIVISION~ ACTUAL _R~ irt~l:T ESTIMATE TOTAL Water Admln~traflon $209 680 $332 391 $330,561 $3.50,010 Water Production 4 931 604 5 432 444 5 371 557 2 971 650 Water Diatribuflon 2,989,806 3,027 584 2,973,201 2 580,102 Water Mate~* Repair 495,997 551 620 525,982 832,221 Water Engineering 183 074 336 772 249 661 301 002 Water Laboratoe/ 184,542 215,779 209 166 221 047 Subto~J Water' Bu~ Expenae~ 8.9~4.7o~ o.sga.sgo ~ 7.2~.oe2 Miscellane~ua / 04~0M 4,510,949 4,752,529 4 754 609 7 765,021 TotaJ Water Expen~e~ 13,506,652 14,649,119 14,414,737 15,021,382 Ormnage (Gan Olovf. Fun~ 354,117 400,322 38~,023 499707 TOTAL WITH GiG EXPENDITURES $13,8~9,769 $15,049,441 $14,779,800 $15,~21 WASTEWATER EXPENDITURES BY CLASSIFICATION 1996-97 m~se IO02AM 19~4-9~ 1995-96 19~5-~6 1996-97 EXPENSE-~ ACTUAL BUOGET E~}T~MATE TOTAL Personai Services $2,122,048 $2 393 888 $2,362,170 $2 707,456 Supfll~e~ 217 163 255 300 264 423 267 215 Purchase Power 429,437 409,000 422 733 430,182 Maintenance 399 810 431 890 447,942 474 320 Service~ 501,244 768 ~ 770 361 734 641 Insurance 22,409 2~,406 25,40~ 26 113 Sund~y 79 16,700 16,,500 16 700 Lartd 0 20,000 0 0 Fixed A~et~ 1 376 598 1 344,325 1,341,704 1,459,800 Sub{oral Wa~tewater Budget Expene~ s.oaa. T8~ s.6e, s.4~ 5.~1.23a ~ Mi~cailaneo~ / 0451M 3,964,641 4,730,729 4,70~,188 4,227,169 TOTAL EXPENSE8 $9,033,427 $10,39~,88! $I 0,3~1,427 $10,343,596 1994-~ 199~-9~ 199~-96 1996-97 pERSONNEL ACTUAL BUDGL=T I=$TIM~TE TOTAL Sen/ice/Maintenat~e 2000 1900 1900 1900 Offlce/Clerimd 200 200 200 1 50 Te~hnicai/Paral~lonal 22 (30 26 O0 26 {30 27 O0 Profe~Monal 800 800 800 900 Manag~u~3e~l~k3n 500 433 43~ 573 Tempurary/Sea~ 5 20 5 20 5 20 5 20 ~2.20 6453 6453 6743 WASTEWATER DEPARTMENT ~o/02~e EXPENDP'URE SUMMARY ~o 02 AM 1 996-9 ! 1024-95 1995-g6 1995-g6 1996-97 DIVISIONS ACTUAL ~IUDGET ~;STIMAI'~ TOTAl, wastewater Aclm~n*atrat~on 220 582 279 322 280,189 331 617 Water Reclamation Plant 2 008 354 2,252,992 2,291 453 2 598,48~ Wastewater Colle~tion 1 915,759 1 989,659 1,973,769 2 048 561 Wastewater Engineering 420,619 480,325 443,0~0 489 286 Westewat~r I..alaoratoty 268 201 352 610 346 854 310 658 Induatfal Preb'eali11ent 235 270 310 244 315 924 337 819 Sul3total Waatewate~ Budget Ex!0ensea s.oea.7~ ~ ~ e.t~6.427 Miscellaneous / 0451M 3,964,641 4 730 729 4,70~,188 4,227,169 TOTAL EXPENDITURES $9,033,426 $10 395 881 $10,356,427 $10 343 596 SOLID WASTE DEPARTMENT EXPENDITURES BY CLASSIFICATION 1996-97 10/18/9;) F. xoenaea ^~;Tl.,I/Id. BUDGET ESTIMATE TOTAL Pemonal ~etvicee $1 936,614 $2 142,659 $2 017,40~ $2,262 226 $ ul~olie~ 267 951 382,725 269,856 396 455 Maintensttce 684 220 627 572 626 750 853,252 Service~ 680 047 1 234 415 913,500 916 595 Admln Transf~ - Leeae 134 195 108 540 108 540 36,630 Insurance 26,062 22 220 22 220 19 480 Sundw 159,10~l 103,300 100 500 130,300 Fixed ~ 328 031 190 696 185,386 410 900 s~b~,~ so#4 w~te Budget ~ ~ ~ ~ ~ Ml~ellaneeus I O80M 1,0'Je,079 1,82e 74~ ~ e84,S96 2,275,~ 00 TOTAL EXPENSE8 $5,272 305 $~,838 776 $8,128,88~ $7,100,938 1994-96 1996-96 1996-96 1996-97 PERSONNEL ACTUAL Rt JP, t~I=T ESTIMATE TOTAL SewtcedMainte~lar~e 4700 4700 4800 4800 Of#ce/Cletl~J 400 500 500 Techni~l~'~-~.l'~al 2 00 2 00 4 96 4 Profea~IonaJ 200 200 200 200 Managemem/Sul=ewlaton 65O 633 533 533 Terll~l~ary~ea~oetaJ 2.50 :~,~ 3.25 2.75 TOTAL PERSONNEL 64 00 65 58 67 58 67 08 SOLID WA8TE DEPARTMENT EXPENDITURE SUMMARY 1o~;e 199~-97 lO~AU ACTUAL BUDGL=I' ESTIMATE TOTAl. Admln~tratidn ! (~00 175,956 256,928 231,121 274,240 Solid Waste Residential/0801 1 158,979 1 371 330 1,091 785 1 277888 Solid Waste Commemial/0802 1 528,710 1,590,547 1,501 215 1,776,744 Solid We. re Lan~/~80~ 890527 1 0~11 9~8 1,001 50~ 1 039,476 Re~/~ling / 0~04 462 0~4 541 254 418 477 457,491 S~c-~ SoM Waste Budget Experu~e ~ 4.a~2.o~7 ~ ~ bll~cet~aneo~ 108~4 1,056,079 1 826,749 1,~4,588 2,27S,100 TOTAL EXPENDITURES 5,272,30~ 6,638,776 6 128 694 7,100,938 FLEET SERVICES / MACHINE SHOP DEPARTMENT EXPENDITURES BY CLASSIFICATION 1996-97 1~18/93 08 6CAM ~x~ns~ ACTUAL m ,r~c'~' ESTIMATE TOT^k Pere~aJ Serviee~ $567,519 $6~,168 $578,218 $484,452 Sui~oik~ 15631 21 62~ 19425 17325 Malmenaf~ce 27,453 33 810 29,425 17 400 Service~ 41,04~ 6~ 760 85 99~ 82,770 Insurance 1 201 I 201 1 201 t 200 Sund~y 0' 2,000 2,000 2 0(30 Sublet Rellim 0 0 0 0 Del)t ~ 0 15 475 15,475 95 475 Ad~ Tran~ 6 5430 6.600 0 0 TOTAL EXPF..N~EB $~,073,33~ $~,4 t 2,838 $2,410,837 PERSONNEL ACllJAL BUDGET E~TIMATE TOTAL ~ 200 200 200 200 Offlce/Cle~ 300 200 200 200 Tech ntcal~ afTll~-~i~alo~at 13 00 13 00 13 00 9 (30 Profea~x~ 000 000 000 000 Temm~//Seaso~ 0.00 0.00 ~,99 19oo 1soo ~eoo 1400 FLEET SERVICES / MACHINE SHOP DEPARTMENT EXPENDITURE SUMMARY ~o~o2M 1996-97 ~oo2Au 1994-~ 1996-~6 19g~-g~ 1996-97 ACTUAL Al In~GT E~TII~IATE~ TOTAL_ GARAG _E/~__. $819,825 $M)7,827 $917 6~0 $1 034 922 MACHINE SHOP~581 191 268 Z35 891 206 826 0 PARTS & FUEL/0583 1 062 243 1 179 320 I 286,381 1 405 700 $2,073,3~ $2,412 838 $2,410,837 $2,440 622 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 rewew functional areas related to the general management and bus~ness environment of the Owner's Utility Department ("Department") and to ~denttfy 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 m the charter and analyze actual practice for comphance and effectiveness · Orgamzatlon 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 s~ze of various work units, especially field service crews · Financial practices rewew will examine the financial condition, strength, appropriate ratios, debts, assets, and general practices of the financial issues of each utthty · Development practices review will examine the City and Department overall development pohmes that affect the finances, planmng and operations of each utility · Support serwces review will examine various support services provided by the Owner's general government departments in the provision of utility services Th~s rewew will ~nclude utday b~lhng, customer serwce, accounting, purchasing, warehousing, legal, tnformatlon serwces, human resources, risk management, finance, treasury, utdlty eng~neenng, and inspection · Franchise and payment ~n heu of taxes review will examine the practices ~n Denton as compared to other s~mdar mtms and the comparative impact on ut~hty rates and servmes · Commumcat~ons rewew w~ll examine the general commumcat~ons, formal and ~nformal, necessary for the ~nternal funct~onamg of the Department, other C~ty departments and governance structures ~n the process of ~ntelhgence gathertng, dec,stun making, d~rect~ng, controlling, momtonng and reforming the staff ~nvolved ~n provl&ng utdlty services · Pubhc relations review wall examine the formal and informal pubhc relatmns programs and mediums for effectively informing and coordinating w~th customers · Planning rewew w~ll examine the processes of strategic planning, capital ~mprovement planning, financml planning and strategic rate planmng Th~s rewew wall examine the processes for appropriate pubhc, governance and staff tnput, analys~s process, dec,stun making plan approval and ~mplementat~on · Budgeting rewew will examine the process of budget development, approval, implementation and momtonng This wall include the capital and operating budget processes · Rate development and adm~mstrat~on rewew will examtne the process of developing, implementing and admm~stenng rates for elecmc, water, wastewater and sohd waste utd~ty services This review will provide a cursory remew of the market sens~t~wty and flemb~llty of the Owner's rates and comparabdity of the Owner's rates w~th other s~mdar commumttes ~n the area Task 1.0 Conduct Project Orientation and Planning Meeting An orientation sesston will be conducted wtth the Management Study Overs~te Committee and semor Ctty management to ensure a clear understanding of the objecttves of the project Spccffic subjects and actions to be addressed and taken during the sesston mclude thc following · Roles of Ctty and Consultant representattves dunng the study · Major goals and objectives of the study · Overvtew of project methods and work plan · Rewew and refinement of project schedule and dehverables · Imtml data request hst Task 1.1 Interview External Stakeholders · Select external stakeholders who have an opportumty to deal w~th the Department dunng the course of business, who influence the bustness environment tn which the Department currently operates, or who the Department desires to have a closer relattonsh~p w~th ~n the future Such stakeholders could ~nclude Pubhc Utlbty board members, C~ty Councd members, C~ty agencies that provide support servtces to the Department, wholesale service customers, large tndustnal customers, newspaper representatives, and supphers F~nal selection will be conducted m collaboration w~th the Department's ProJect Manager and the Management Study Overstte Committee · Develop hst of base questions as a guide for the external and internal stakeholder interviews m collaboratton w~th the Department's Project Manager and the Management Study Overslte Committee · Interwew up to 20 external stakeholders ~n order to ascertatn the perceived strengths, weaknesses, opportumt~es, and threats of the Department All ~nterv~ews with the elected offictals and appotnted Pubhc Utfltty board members will be led by the Consultant's ProJect Manager and/or Partner- m-Charge Other interviews may be conducted by members of the Consultant's team most fam~har w~th the specmlty area important to the stakeholder · Prowde wrttten summary of ~nterv~ew results to Department's ProJect Manager and the Management Study Overslte Committee Task 1.2 Conduct Internal Department Stakeholder Interwews · Select internal Department stakeholders that represent a cross-sect~on of management and superwsory personnel F~nal selectton will be conducted m collaboration w~th Department's ProJect Manager and the Management Study Overs~te Committee · Interview up to 20 ~nternal Department stakeholders ~n order to ascertatn the perceived strengths, weaknesses, opportumt~es, and threats of the Department Interviews may be conducted by members of the Consultant's core team members most fam~har w~th the specmlty area important to the stakeholder · Ascertain the perceived strengths, weaknesses, opportumtles, and threats of the Department and to assess the perceived effectiveness of the Department ~n the functional areas ~dentffied above from these ~ntervtews · Determtne current performance measures and potenttal benchmark~ng parameters for s~gmficant cost centers related to the ~ndlvtdual diws~ons of the Department from these ~nterwews · Provide written summary of ~ntervtew results to Department's ProJect Manager and the Management Study Overs~te Committee Task 1.3 Conduct Other City Agencies Interviews · Select representatives of the C~ty's Economic Development, Eng~neenng, and F~nanclal Services agencies which prowde service to the Ut~hty Department F~nal select~on wtll be conducted ~n collaboration w~th 4 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 ~mportant 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 Overslte Committee Task 1.4 Conduct Management Workshop. This workshop w~ll be facilitated by the Consultant and should be attended by the Management Study Oversite Committee, Department senior management and key dlws~on heads The following items wall 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 rmssion 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 · General management functional revtew areas Task 1 5 Perform Intense Functional Area Revtew and Evaluation · Analyze, for each functional areas ~denttfied above, whether the current pmctmes and pohc~es address the followtng parameters effecttvely and efficiently from an overall Department perspecttve Support the City's V~smn Support the Department's Mtss~on Statement Promote a customer based and focused operatton Prowde tools to control mternal factors of price, quahty of product, and marketmg tn order to be compettttve tn today's marketplace Prowde tools to evaluate and mcogmze the impact of external factors on current and future operattons Are clearly commumcated to tnternal and external stakeholders Permit the Department to address percetved weaknesses and threats and bmld upon current strengths and opportumttes Promotes the practice of conttnual ~mprovement through self- operation assessments Promotes the practme of busmess process reenglneenng to ~mplement dramattc ~mprovements through technology and other means Promotes a more efficient work force through gam-shanng · Provide summary analysis of any particular organization function that appears to be noncompetitive due to changing market conditions, regulatory mqmrements, technology or other reasons · Provide draft report of Department's general management functions The draft report will ~nclude an executive summary, a discussion of general management practices and policies, and detailed analysis orgamzed by individual utility · Include City's comments on draft report in final study report Phase 2 - Comparative Analysis The purpose of th~s phase is to examine specific and s~gmficant cost components of each operating dimsion of the Department and perform a comparative analys~s with other pubhc and private utilities The comparative analysis will include the following cost components · Electric Utility - Electric power supply, fuel power pooling and partnerships, power production, transm~ssmn, substations, d~stnbution, engineering, metering, radio serwceq, fiber optic serwces, and computer / techmcal services to internal / external orgamzations · Water Utdlty - Raw water supply, regional partnerships, treatment, storage and pressure pumping, distribution, engineering, metering and wholesale services · Wastewater Utility - Collection, pumping stations, treatment, btosohds management, regional partnerships, wholesale services and stormwater drainage · Sohd Waste Utility - Residential collection, commem~al collection, landfill, composting and recycling · Fleet Services - Vehicle maintenance, parts, fuel services · 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 Benchmarklng Criteria This task will be performed early in the study in order to allow sufficient time for the conduct of the analyqis and evaluation of the comparative results · Review benchmarklng criteria gathered from interviews performed in Phase 1 · Meet with ProJect Department representatives to finahze benchmarking criteria Task 2 2 Perform Benehmarkmg Analysis. · Meet with Department's ProJect Manager and the Management Study Oversite Committee to select benchmarkmg candidates · Conduct benchmarklng analysis using data currently available to the Department and the Consultant This data may be supplemented w~th additional data from other candidates as deemed necessary for analysts and evaluation purposes Task 2.3 Evaluate Benehmarklng Results · Identify s~gmficant gaps ~n performance applicable to the Department's operation · Determine ~mpact of performance gap on the overall success of the Department · Recommend specific steps for performance improvement 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 Outsourclng 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 outsourcmg through cost reduction or improved quality and service These outsourclng opportunities will be included in either the Phase 1 or Phase 2 draft reports Supplemental Serwces 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 Overs~te 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 Exhibit C C~ty of Denton, Texas Utflaty Department Management Study List of Project Dehverables 1 Project orientation and planmng meeting 2 Quest~onnmre for interviews 3 Summary of mtermew results 4 Management workshop 5 Summary analys~s of Department functions that appear to be noncompetitive 6 25 copras of Draft report on Phase 1 findings (general management functmns) 7 Benchmark~ng criteria 8 List of benchmark~ng candidates 9 25 cop~es of Draft report on Phase 2 findmgs (comparative analys~s) 10 25 cop~es of Draft study report I 1 Presentation of Draft study report 12 100 cop~es of Final study report 13 Presentation of Final study report Exhibit 1) City of Denton, Texas Utility Department Management Study Project Schedule Week Beg~nmng Event March 5, 1997 Authorization to proceed w~th study March 10, 1997 Project orientation and planmng meeting Interviews w~th external, internal Department, and other C~ty agency stakeholders beg~n Benchmarkmg begins March 31, 1997 Management Workshop April 21, 1997 Draft report on general management remew May 19, 1997 Draft report on comparative analysis and outsourc~ng candidates June 23, 1997 Presentation of prehmmary study report June 30, 1997 Final report July 7, 1997 Presentation of final report ~ ooooo~ ooo~ ~ ~ ~ ~o~o~ o~ o 8 ~ ~ ~ oo~oo oooo o §