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
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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
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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
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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
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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
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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
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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
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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
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