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Home My WebLink AboutItem 12 - Engineering ServicesMEMO TO: FROM: MEETING DATE: SUBJECT: RECOMMENDATION: ITEM 4949 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ROGER NELSON, CITY MANAGER MARCH 23, 2004 ENGINEERING SERVICES CONTRACT City Council to consider award of an engineering services contract to Freese and Nichols Incorporated in the amount of $23,000 and authorize staff as signatory. FUNDING SOURCE: Funds are available in Account # 200-44540-531-2 Professional Services BACKGROUND: Freese and Nichols Incorporated has provided a Utility Fund Analysis on a yearly basis for the past several years. The analysis looks at historical, current and future revenue and expenditure in the water and sewer Utility Fund and predict water and sewer rates necessary to support Utility operation. The analysis is an excellent tool in maintaining a sound Utility system. This year the analysis will also include a hydrologic analysis to ensure the Lake Grapevine Accounting Plan is properly administered. This plan was a part of the settlement water rights dispute between the City of Grapevine, Dallas Water Utilities and Dallas County Park Cities Municipal Utility District. Staff recommends award of the Engineering Services Contract to Freese and Nichols Incorporated. MS/ms March 15, 2004 (8:29AM) March 9, 2004 %;aad Mr. Jerry Hodge Director of Public Works City of Grapevine 200 South Main Street Grapevine, Texas 76051 Re: Water and Wastewater Rate Study and Lake Grapevine Accounting Review Dear Mr. Hodge: In response to your request, we are pleased to submit this letter agreement to provide services to the City of Grapevine for a Water and Wastewater Rate Study and Lake Grapevine Accounting Review. The following Scope of Services details the work to be performed in this study. SCOPE OF SERVICES A. Water and Wastewater Rate Study 1. Meet with Grapevine staff to discuss the study and obtain necessary data, including the following: • Information on actual population, connections, water use, wastewater flow, operating expenses, capital expenditures, revenue, and debt service for fiscal year 2001-02 and 2002-03. • Information on budgeted connections, water use, wastewater flow, operating expenses, capital expenditures, revenue, and debt service for fiscal year 2003-04. • Information on expectations for changes in income and expenditures for Grapevine's water and wastewater system. • Historical data on use for golf course irrigation and projections of future use. • Information on projected water needs for Opryland and expected start-up date. • Information on recent impact fee income. • Projections of capital expenditures and bond sales for the next 5 years. • Information on existing commitments for future debt service by fiscal year. • Information on the water and wastewater fund working capital as of the end of fiscal year 2002-03. • Other information that will be useful in the proposed study. Obtain information from city staff (Department of Public Works and Finance Department) on desired output and format for the study, expected trends in growth for Grapevine, and other issues. 2. Input the data obtained from the city into existing spreadsheet models of historical and i projected water and wastewater fund income and expenses. Review the previous projections of population, connections, water use, wastewater flow, revenue, and expenses and compare them with the new data. Develop revised projections of the following: Letter Agreement from Tom Gooch to Jerry Hodge on Water and Wastewater Rate Study and Lake Grapevine Accounting Review March 9, 2004 Page 2 of 4 • Population • Water and sewer connections • Water use • Wastewater flow • Revenue • Operating and other expenses Meet with Grapevine staff to review the revised projections. 3. Incorporate the revised projections of population, water and sewer connections, water use, wastewater flow, revenue, and operating and other expenses into the existing rate study spreadsheet model, and extend the model through fiscal year 2008-09. Identify rate increases needed in the time frame, if any. 4. Update the comparison of water and wastewater rates with the rates charged by other Metroplex cities of similar population. 5. Meet with city staff to review the projected rate increases and the projected financial performance of the water and wastewater system. Prepare a draft report describing the analysis and provide Grapevine with five copies for review. Revise the report as appropriate based on staff comments, and provide 25 copies of the final report. Present the results of the study to Grapevine's city council. B. Lake Grapevine Accounting Review 1. Meet with Grapevine staff to obtain the Lake Grapevine Accounting Program (recently completed by Nationwide Water Resources). Obtain any related data and discuss the study with Grapevine staff. Review and provide a memorandum with comments and, if necessary, recommendations for adjustments to the Program. 2. Obtain historical data (last 2 years) of releases from Lake Grapevine as well as gage flow data for the gage located immediately downstream of Lake Grapevine. Compare and analyze the data, and provide a memorandum outlining any recommendations to improve accuracy of data collection. 11- 10 1 t ' Freese and Nichols is authorized to commence work on the Project upon execution of this Agreement and agrees to complete the services in accordance with the following schedule: Draft Report within four weeks of receipt of data requested in Scope Items A- 1, B-1, and B-2. Final Report within 2 weeks of receipt of comments from Grapevine If Freese and Nichols' services are delayed through no fault of Freese and Nichols, Freese and Nichols Letter Agreement from Tom Gooch to Jerry Hodge on Water and Wastewater Rate Study and Lake Grapevine Accounting Review March 9, 2004 Page 3 of 4 shall be entitled to equitable adjustment of compensation and Freese and Nichols shall be entitled to adjust contract schedule consistent with the number of days of delay. RESPONSIBILITIES OF GRAPEVINE Grapevine shall perform the following in a timely manner so as not to delay the services of Freese and Nichols: A. Designate in writing a person to act as Grapevine's representative with respect to the services to be rendered under this Agreement. Such person shall have contract authority to transmit instructions, receive information, interpret and define Grapevine's policies and decisions with respect to Freese and Nichols' services for the Project. B. Provide all criteria and full information as to Grapevine's requirements for the Project. C. Assist Freese and Nichols by placing at Freese and Nichols' disposal all available information pertinent to the Project. DESIGNATED REPRESENTATIVES Freese and Nichols and OWNER designate the following representatives: • Owner's Designated Representative - Matt Singleton, Assistant Director of Public Works, City of Grapevine, 501 Shadybrook Drive, Grapevine, Texas 76051, 817/410-3328, FAX 817/410-3051, matts@ci.grapevine.tx.us. • Freese and Nichols' Project Manager — Tom Gooch, Freese and Nichols, 4055 International Plaza, Suite 200, Fort Worth, Texas 76109, 817/735-7314, FAX 817/735-7492, tcg@fi-eese.com. • Freese and Nichols' Accounting Representative — Sharon James, Freese and Nichols, 4055 International Plaza, Suite 200, Fort Worth, Texas 76109, 817/735-7298, FAX 817/735-7491, sdj@freese.com. COMPENSATION Compensation to FNI for the services described in the scope of services shall be the lump sum of $23,000 twenty-three thousand do "ars If FNI sees the Scope of Services changing so that additional services are needed, FNI will notify OWNER so that mutually acceptable compensation can be negotiated. TERMS AND CONDITIONS OF AGREEMENT We propose to furnish our services as described herein in accordance with Attachment TC, "Terms and Conditions of Agreement". Letter Agreement from Tom Gooch to Jerry Hodge on Water and Wastewater Rate Study and Lake Grapevine Accounting Review March 9, 2004 Page 4 of 4 We appreciate the opportunity to submit this letter agreement. If additional information or clarification is desired, please do not hesitate to contact us. If you are in agreement with the services described above and wish for us to proceed with this assignment, please sign below and return one copy of the agreement for our files. Yours very truly, FREESE AND NICHOLS, INC. CITY OF GRAPEVINE, TEXAS IC Title: Title: Date: Date: