HomeMy WebLinkAboutResolution - 2021-R0301 - Amendment No. 2 PSA 14327 with NewGen Strategies 8.24.21Resolution No. 2021-R0301
Item No. 7.15
August 24, 2021
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute
for and on behalf of the City of Lubbock, the Second Amendment to the Professional Services
Agreement (Contract #14327) for consultant services related to reviewing, evaluating,
designing and implementing water and wastewater cost of service, rates, and financial models,
by and between the City of Lubbock and NewGen Strategies and Solutions, LLC and related
documents. Said Second Amendment is attached hereto and incorporated in this Resolution as
if fully set forth herein and shall be included in the minutes of the City Council.
2021
Passed by the City Council on August 24, ___ 52021.
DANIEL M. POPE, MAYOR
AT EST:
— �A � k4\( f)Z
Rebecca arza, City Secre ary
". 9-9;Ti1+I-37MM�i Ci iZ0[1Wy" 1
Jesica McEachern, Assistant City Manager
APPROVED AS TO FORM:
Amy puty City Atto ey
Resolution No. 2021-R0301
STATE OF TEXAS §
COUNTY OF LUBBOCK §
AMENDMENT NO.2 TO PROFESSIONAL SERVICES AGREEMENT
This Amendment No. 2 to Agreement is entered into this 'h day of August,
2021 between the City of Lubbock, a Texas municipal corporation (hereinafter called
"the CITY") and NewGen Strategies and Solutions, LLC (the "CONSULTANT"), a
corporation authorized to conduct business in Texas.
WHEREAS, the CONSULTANT and the CITY have previously entered into
Agreement (Contract #14327) dated October 9, 2018 (hereinafter called "the
Agreement"); and
WHEREAS, the CONSULTANT and the CITY have previously amended the
Agreement dated February 25, 2020 (hereinafter called "Amendment No. 1); and
WHEREAS, the CITY and the CONSULTANT hereby desire to amend said
agreement again (Amendment No. 2).
NOW THEREFORE, the CITY and the CONSULTANT hereby agree to amend
the Agreement as follows:
1) ARTICLE I. TERM is deleted in its entirety and replaced with the
following:
The term of this Contract commences on the Original Contract's Effective
Date and continues without interruption for a term of 48 months, as set
forth in Exhibit "A-2", attached to and made a part of this Agreement for
all purposes. If the CONSULTANT determines that additional time is
required to complete the Services, the Director of Water Utilities may, but
is not obligated to, in his discretion, execute an agreement to grant up to
an additional six (6) months of time so long as the amount of the
consideration does not increase. An amendment to this Agreement
resulting in an increase in the amount of the consideration must be
approved by the City Council.
2) ARTICLE II. SERVICES AND COMPENSATION is deleted in its
entirety and replaced with the following:
A. CONSULTANT shall conduct all activities and within such timeframes
as set forth on Exhibit "A-2", attached hereto (the "Services").
B. CONSULTANT shall receive as consideration to be paid for the
performance of the Services set forth in Exhibit "B-2". In no event shall
Water & Wastewater Rate Structure Update- Phase II I of 6
Amendment No. 2
the total compensation paid to CONSULTANT pursuant to this Contract
exceed eighty-one thousand five -hundred dollars ($81,500).
3) Except as specifically amended or modified hereby, all of the terms and
provisions of the Agreement shall remain valid and in full force and effect
as originally provided.
IN WITNESS WHEREOF, the parties have executed this Agreement by their
duly authorized representatives as of the date first written above.
AS Tjfiu.ka
i�4'
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
1j""' / '
G�
Aubrey A. Spe , P.E., Direc r of Water Utilities
APPROVED AS TO FORM:
CITY OF UBBOCK
Daniel M. Pope, Mayor
Ne n trategies & Solutions, LLC
�--
C t, Director
Water & Wastewater Rate Structure Update- Phase II 2 of 6
Amendment No. 2
Exhibit A-2
Scope of Services
Water & Wastewater Rate Structure Update- Phase II
Task 1— Financial Plan Update & Revenue Requirements Identification
In Task 1, the Project Team will update the prior Water and Sewer Financial Plans
prepared for the City's Water and Wastewater Utilities. As part of this update, the
Project Team will work with the City to incorporate recently prepared Master Plans,
including the Water Supply Master Plan, and estimates of upcoming capital projects
reflective of anticipated funding source (i.e., cash -funded, debt -funded, grants, etc.).
Task I Deliverables:
• Task I In -Person Work Sessions with Water Advisory Commission.
• Annual Fiscal Year Task I Memo Report including revenue requirement projections
after teleconference with City staff to discuss initial results and any revisions.
Task 2 — Phase II Rate Design (Completed)
Based on direction received in FY 2019 from the Water Advisory Commission and City
staff, the Project Team will meet with the City Council to discuss Phase II rate revisions
to Commercial and Irrigation Customers. As part of these briefing sessions, the Project
Team will emphasize the impact on school and irrigation accounts and will provide
potential alternative rate options the Council may wish to consider for mitigating
potential rate shock. Based on Council feedback, NewGen will prepare final rates for
consideration based on City Council guidance, with specific emphasis on the projected
impact the amended rates will have on financial performance and the City's credit rating.
Given the sensitivity of the proposed rate design, the Project Team has included several
meetings with the City Council under this task.
Task H Deliverables:
• Up to (3) Task II Briefing Session with Water Advisory Commission. (Completed)
• Presentation materials, as necessary, for Water Advisory Commission (Completed)
• Presentation materials, as necessary, for City Council. (Completed)
• Memorandum on rate design recommendation(s) inclusive of discussion of customer
impact and projected impact on financial performance and the City's credit rating.
(Completed)
Water & Wastewater Rate Structure Update- Phase II 3 of 6
Amendment No. 2
Task 3 — Financial Forecasting & Rate Model Amendment
As requested by City Staff and reflective of Council's final decision on Phase II rate
design, the Project Team will make necessary changes to the previously prepared
financial forecasting and rate models to incorporate the rate structure amendments and
enhance the Model's reporting capabilities specific to financial metrics. As part of this
task, the Project Team will also conduct teleconference meetings with City staff to
discuss the strength and weaknesses of the existing models, and to receive input on other
desired changes or requested features that the Project Team should consider as part of
Task III. The Project Team will make requested changes at the direction of Staff and
then will meet again to demonstrate the revised models. In the interest of project cost, the
Project Team anticipates meetings to demonstrate model revisions will be conducted via
teleconference or webinar but will happily conduct these meetings on -site if the project
budget will allow.
Task III Deliverables:
As needed meetings with City staff each fiscal year to discuss changes to the Financial
Forecasting and Rate Models.
• Revised Financial Forecasting and Rate Models incorporating new rate design and requested
staff changes.
• Teleconference/Webinar(s) to illustrate revised models.
Task 4 — Model Support Services (Completed)
On an as -needed basis, the Project Team will assist City staff with updating and
maintenance of the City's Financial and Rate Models including, but not limited to,
managing or reviewing data input, model performance, and output. The Project Team
will provide phone and internet-based support, as well as on -going technical and quality
assurance review of the models. When requested, the Project Team will provide support
to the City in preparation of required infographics or ad -hoc analysis in support of the
management of the City's water and wastewater utilities. Work will be performed at the
direction of City staff, and costs incurred by NewGen under this Task will not exceed the
proposed budget without prior written authorization of the City. Additional services
requested above these levels will be provided at a mutually negotiated price with the
City.
Task IV Deliverables:
• Model support and ad -hoc analysis. (Completed)
Task 5 — Wholesale & Industrial Customer Support (Completed)
On an as -needed basis, the Project Team will assist City staff in the review and analysis
of the impact new wholesale or industrial customers will have on the City's water and
wastewater system. This analysis will include, but not be limited to, an analysis of
revenues under existing rates and appropriate pricing structures reflective of the cost of
Water & Wastewater Rate Structure Update- Phase II 4 of 6
Amendment No. 2
providing service based on defined demand levels as well as pricing required to
encourage economic development. When requested, the Project Team will also help in
preparing briefing materials for City Management and the City Council on rates or the
financial/operational impact of these customers. Work will be performed at the direction
of City staff, and costs incurred by NewGen under this Task will not exceed the proposed
budget without prior written authorization of the City. Additional services requested
above these levels will be provided at a mutually negotiated price with the City.
Task V Deliverables:
• Ad -hoc financial and rate analysis specific to existing or potential wholesale customers of the
City. (Completed)
Proposed Project Schedule
The tasks identified above are on -going based on the Original Contract between the
CITY and CONSULTANT. Tasks will be completed upon expiration of the contract.
I
Financial Plan Updates and Revenue
On -going
October 7, 2022
Requirements Identification
2
Phase II Rate Design
Completed
N/A
3
Financial Forecasting & Rate Model
On -going
October 7, 2022
Amendment
4
Model Support Services
Completed
N/A
5
Wholesale/Industrial Customer Support
Completed
N/A
Water & Wastewater Rate Structure Update- Phase I1 5 of 6
Amendment No. 2
Exhibit B-2
Payment of Fees
Water & Wastewater Rate Structure Update — Phase II
The City shall pay Consultant for services set forth in Exhibit A-2 on a lump sum basis by task,
as indicated in the attached schedule below. The Consultant will invoice the City monthly based
on estimated percent complete of each task. This amount will not be exceeded without a
contract amendment. As fees for each task are estimates only, the City and Consultant
agree to allow redistribution of funds between Tasks as appropriate to allow flexibility in
providing the needed services.
Task
Description
Original
Amendment
Amendment
Total Amended
Contract
No.1
No.2
Contract
Amount
1
Financial Plan Update & Revenue
$ 18,810
$ 190
$11,462
$ 30,462
Requirements Identification
2
Phase II Rate Design
25,550
4,450
(17,718)
12,282
3
Financial Forecasting & Rate
15,600
4,400
12,201
32,201
Model Amendment
4
Model Support Services
5,400
2,100
(2,100)
5,400
5
Wholesale / Industrial Customer
0
5,000
(3,845)
1,155
Support
Total Contract Amount
$ 65,360
$16,140
$0
$ 81,500
Water & Wastewater Rate Structure Update- Phase II 6 of 6
Amendment No. 2
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
1 of 1
Complete Nos. 1 - 4 and 6 if there are interested parties.
OFFICE USE ONLY
Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties.
CERTIFICATION OF FILING
Certificate Number:
1 Name of business entity filing form, and the city, state and country of the business entity's place
of business.
2021-793196
NewGen Strategies and Solutions, LLC
Richardson, TX United States
Date Filed:
08/20/2021
2 Name of governmental entity or state agency that is a party to the contract for which the form is
being filed.
City of Lubbock, Texas
Date Acknowledged:
09/01/2021
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods, or other property to be provided under the contract.
14327A
Utility consulting services
4
Name of Interested Party
City, State, Country (place of business)
Nature of interest
(check applicable)
Controlling
Intermediary
Lane, Mike
Brentwood, TN United States
X
Yanke, Dave
Austin, TX United States
X
Ekrut, Chris
Richardson, TX United States
X
Georgis, Tony
Lakewood, CO United States
X
Mancinelli, Joseph
Lakewood, CO United States
X
5 Check only if there is NO Interested Party. ❑
6 UNSWORN DECLARATION
My name is and my date of birth is
My address is
(street) (city) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct.
Executed in County, State of on the
day of , 20
(month) (year)
Signature of authorized agent of contracting business entity
(Declarant)
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.1.191b5cdc