The URL can be used to link to this page

Home My WebLink AboutResolution - 2020-R0069 - Amendment With Newgen Strategies And Solutions - 02/25/2020 Resolution No. 2020-R0069 Item No. 7.13 February 25, 2020 RESOLUTION BE IT RESOLVED BY THE CITY COUNCII. OF"1 HE 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, an Amendment to Professional Services Contract (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 Contract 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. Passed by the City Council on February 25_ , 2020. DANIEL M. POPE, M YOR ATTEST: Rebe ca Garza, City Se eta APPROVED AS TO CONTENT: Aubrey A. Sp�e, P.1E, Direc or of Water Utilities APPROVED AS TO FORM: Amy/L,�S s, eput y ttorney RES.Prof Sery Contract Amend-NewGen Strategies and Solutions, LLC (2-6-20) Resolution No. 2020-R0069 STATE OF TEXAS § COUNTY OF LUBBOCK § AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT This amendment to Agreement is entered into this 25th day of February, 2020 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 CITY and the CONSULTANT hereby desire to amend said agreement. 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 thus Contract commences on the Original Contract's Effective Date and continues without interruption for a term of 36 months, as set forth in Exhibit"A-l", 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 timefranies as set forth on Exhibit"A-I", attached hereto (the"Services"). B. CONSULTANT shall receive as consideration to be paid for the performance of the Services set forth in Exhibit"B-I". In no event shall the total compensation paid to CONSULTANT pursuant to this Contract exceed eighty-one thousand five-hundred dollars($81,500). 3) Except as specifically amended or modified hereby, all of the terms and provisions of the Agreement shall remain valid and in full force and effect as originally provided. Water&Wastewater Rate Structure Update-Phase II 1 of 6 Amendment No. 1 IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date first written above. CIT7OFLUBZCK Daniel M. Pope, M yor ATTEST: X— lt`eb cca Garza, City Sec eta APPROVED AS TO CONTENT: ubrey A. Sp ; P.E., Dire or of Water Utilities APPROVED AS TO FORM: Amy Sj�as, .$ant ttoiney NewGen S rategies & Solutions, LLC Chris lout, Director I i I Water&Wastewater Rate Structure Update-Phase II 2 of 6 Amendment No. 1 Exhibit A-1 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 1 Deliverables: • Task I In-Person Work Sessions with Water Advisory Commission. (Complete) • 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 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. (Complete) • Presentation materials, as necessary, for Water Advisory Conunission (Complete) • Up to (3) Task II Briefing Sessions with the City Council concerning Phase II Rate Design. • Presentation materials ,as necessary, for City Council. • Memorandum on rate design reconunendation(s) inclusive of discussion of customer impact and projected impact on financial performance and the City's credit rating. Water&Wastewater Rate Structure Update-Phase II 3 of 6 Amendment No. 1 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 snake 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 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 intemet-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. Task 5 —Wholesale & Industrial Customer Support 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 providing service based on defined demand levels as well as pricing required to Water&Wastewater Rate Structure Update-Phase II 4 of 6 Amendment No. 1 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. 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. DescriptionTask No Task • • Financial Plan Updates and Revenue 1 On-going October 8,2021 Requirements Identification 2 Phase II Rate Design On-going October 8,2021 3 Financial Forecasting&Rate Model On-going October 8,2021 Amendment 4 Model Support Services On-going October 8,2021 5 Wholesale/Industrial Customer Support On-going October 8, 2021 Water&Wastewater Rate Structure Update-Phase II 5 of 6 Amendment No. 1 Exhibit B-1 Payment of Fees Water & Wastewater Rate Structure Update—Phase II The City shall pay Engineer for services set forth in Exhibit A-1 on a lump sum basis by task,as indicated in the attached schedule below. The Engineer will invoice the City monthly based on estimated percent complete of each task. Task Description Original Amendment Total Amended Contract No. I Contract Amount 1 Financial Plan Update &Revenue $ 18,810 $ 190 $ 19,000 Requirements Identification 2 Phase II Rate Design 25,550 4,450 30,000 3 Financial Forecasting &Rate 15,600 4,400 20,000 Model Amendment 4 Model Support Services 5,400 2,100 7,500 5 Wholesale/Industrial Customer 5,000 5,000 Support Total Contract Amount $ 65,360 16,140 $81,500 Water&Wastewater Rate Structure Update-Pliase II 6 of 6 Amendment No. 1