Ordinance No. 9,538ORDINANCE NO. 9538
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING A CONTRACT FOR A WATER AND SEWER
RATE STUDY WITH MAXIMUS, INC., AUTHORIZING PAYMENT BY THE
CITY OF BAYTOWN IN AN AMOUNT OF THIRTY -SEVEN THOUSAND
FIVE HUNDRED AND NO 1100 DOLLARS ($37,500.00); MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section l: That the City Council of the City of Baytown, Texas, hereby authorizes and
directs the City Manager to execute and the City Clerk to attest to a professional services contract for a
Water and Sewer Rate Study with Maximus, Inc. A copy of said agreement is attached hereto, marked
Exhibit "A," and made a part hereof for all intents and purposes.
Section 2: That the City Council of the City of Baytown authorizes payment to Maximus,
Inc., of a sum not to exceed THIRTY -SEVEN THOUSAND FIVE HUNDRED AND NO 1100
DOLLARS ($37,500.00).
Section 3: That the City Manager is hereby granted the general authority to approve a
decrease or an increase in costs by TWENTY -FIVE THOUSAND AND NO 1100 DOLLARS
($25,000.00) or less, provided that the amount authorized in Section 2 hereof may not be increased by
more than twenty-five percent (25 %).
Section 4: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown. _
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 27`h day of March, 2003.
PETE C. ALFARO, Mayor
ATTEST:
GA Y" W. SMITH, City Clerk
APPROVED AS TO FORM:
is • . , I. Ci;
P:\ KarenTiles\City Cowicill ordinances \Water &SewerRateSwdy.doe
® AGREEMENT TO PROVIDE
PROFESSIONAL CONSULTING SERVICES TO
CITY OF BAYTOWN, TEXAS
THIS AGREEMENT, entered into this day of March, 2003 and effective
immediately by and between MAXIMUS, INC. (hereinafter called the "Consultant ") and City of
Baytown, Texas (hereinafter called the "City"), WITNESSETH THAT:
WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced
in the area of conducting water and sewer rate studies, and
WHEREAS, the City desires to engage the Consultant to assist in developing a water
and sewer rate study, and
NOW THEREFORE, the parties hereto mutually agree as follows:
1. Employment of Consultant. The City agrees to engage the Consultant and the
Consultant hereby agrees to perform services as outlined in its proposal for water & sewer rate
study dated January 27, 2003 (the "Proposal "). The Proposal is attached hereto and incorporated
herein by this reference for all intents and purposes, provided that in the event of any conflict or
inconsistency between the provisions of this Agreement and the provisions of the Proposal, the
provisions of this Agreement shall control.
2. Scope of Services. The Consultant shall perform and carry out in a good and
professional manner the services as outlined in the Proposal. Consultant shall perform all
services under this Agreement with the care and skill ordinarily used by members of profession
practicing under the same or similar circumstances, time and locality. Additionally, the
Consultant shall be responsible for the technical accuracy of its services and documents resulting
therefrom, and the City shall not be responsible for discovering deficiencies therein. Consultant
shall correct deficiencies without additional compensation.
3. Time of Performance. The services to be performed hereunder by the Consultant
shall be undertaken and completed in such sequence as to assure their expeditious completion
and best carry out the purpose of the Agreement. The Consultant must submit and obtain the
approval of the City Council of a water and sewer rate study on or before May 29, 2003.
4. Compensation. The City agrees to pay the Consultant a sum not to exceed thirty-four
thousand, five hundred dollars ($34,500) for all services required, plus reimbursement for travel
and associated travel expenses not to exceed three thousand dollars ($3,000).
A'1 `11 ! " ;
rp
Agreement to Provide Professional Consulting Services, Page 1
5. Method of Payment. The Consultant shall be entitled to payment in accordance with
the provisions of this paragraph. The Consultant will invoice the City showing a detailed listing
of all services performed upon both completion of a water and sewer rate study and acceptance of
such study by the City Council. Travel and associated travel expenses may be invoiced monthly
and shall show a detailed listing of such expenses. Receipts for expenses shall be available for
audit and provided to the City at no additional expense upon request. The City shall have thirty
(30) days to pay Consultant's invoice from the date of receipt of such invoice. All invoices must
identify with specificity the expenses incurred, and/or the work or services performed and the
date(s) of such expense, work or services. In the event of a disputed or contested invoice, the
parties understand and agree that the City may withhold the portion so contested, but the
undisputed portion will be paid.
6. C h_ antes. The City may, from time to time, require changes in the scope of the
services of the Consultant to be performed hereunder. Such changes, which are mutually agreed
upon by and between the City and the Consultant, shall be incorporated in written amendment to
this Agreement.
7. Services and Materials to be Furnished by the City. The City shall locally furnish
the Consultant with all available necessary information, data, and material pertinent to the
execution of this Agreement. The City shall cooperate with the Consultant in carrying out the
work herein and shall provide adequate staff for liaison with the Consultant and other agencies of
the City government.
8. Termination of Agreement for Cause. The City may terminate this Agreement at
any time by giving at least (5) days prior written notice of termination to the Consultant. Upon
delivery of any notice of termination required herein, Consultant shall discontinue all services in
connection with the performance of the Agreement. Within ten (10) days after receipt of the
notice of termination, Consultant shall submit a final statement showing in detail the services
satisfactorily performed and accepted and all other appropriate documentation required herein for
payment of services. At the same time that the final statement is tendered to the City, Consultant
shall also tender all of Consultant's work product, whether complete or not, in an acceptable
form and format to the City's liaison. No final payment will be made until all work product is so
tendered. The calculation of payment shall be pursuant to the mutual agreement of the parties
provided, however, Consultant shall not be entitled to anticipatory profit. If this Agreement is
terminated for cause, Consultant shall be liable for any damage to the City resulting therefrom.
This liability includes any increased costs incurred by the City in completing Consultant's work.
The rights and remedies of the City in this section are in addition to any other rights and remedies
provided by law or under this Agreement.
9. Information and Reports. The Consultant shall, at such time and in such form as the
City may require, furnish such periodic reports concerning the status of the project, such
statements, certificates, approvals and copies of proposed and executed plans and claims and
other information relative to the project as may be requested by the City. The Consultant at the
• completion of the services under this Agreement shall furnish the City a final report in such form
as may be required by the City. Furthermore, the Consultant will provide the City with a copy of
Agreement to Provide Professional Consulting Services, Page 2
•
•
the computerized r ate m odel, i n M icrosoft E xcel f ormat, s upporting a 11 f indings o f t he s tudy.
The rate model should be in suitable form for annual updates by City staff:
10. Right of Review and Audit. City may review any and all of the services
performed by Consultant under this Agreement. City is hereby granted the right to audit, at
City's election, all of Consultant's billings relating to the performance of this Agreement.
Consultant agrees to retain such records for a minimum of three (3) years following completion
of this Agreement.
11. OwnershiR of Documents. Upon acceptance or approval by City or upon
termination of this Agreement, all reports, information and other data, given to, prepared or
assembled by Consultant under this Agreement, and any other related documents or items shall
become the sole property of City and shall be delivered to City, without restriction on future use.
Consultant may make copies of any and all documents for its files.
12. Notices. Unless otherwise provided in this Agreement, any notice provided for or
permitted to be given must be in writing and delivered in person or by depositing same in the
Unites States mail, postpaid and registered or certified, and addressed to the party to be notified,
with return receipt requested, or by delivering the same to an officer of such party. Notice
deposited in the mail as described above shall be conclusively deemed to be effective, unless
otherwise stated in this Agreement, from and after the expiration of three (3) days after it is so
deposited.
For the purpose of notice, the addresses of the parties shall be as follows unless properly
changed as provided for herein below:
CITY:
City of Baytown
Gary Jackson, City Manager
2401 Market Street
Baytown, TX 77520
CONSULTANT:
MAXIMUS, INC.
Robert McLain, Senior Manager
13601 Preston Road, Suite 400 West
Dallas, TX 75240
Each party shall have the right from time to time at any time to change its respective address and
each shall have the right to specify a new address, provided that at least fifteen (15) days' written
notice is given of such new address to the other party.
13. Insurance. Consultant shall procure and maintain at his sole cost and expense for
the duration of the Agreement, insurance against claims for injures to person or damages to
property which may arise from or in connection with the performance of the Work hereunder by
Consultant, his agents, representatives, volunteers, employees or subconsultants.
a. Consultant's insurance coverage shall be primary insurance with respect to the
City, his officials, employees and agents. Any insurance or self - insurance
maintained by the City, his officials, employees or agents shall be considered in
excess of Consultant's insurance and shall not contribute to it. Further,
Consultant shall include all subconsultants, agents and assigns as additional
insureds under its policy or shall furnish separate certificates and endorsements
Agreement to Provide Professional Consulting Services, Page 3
® for each such person or entity. All coverages for subconsultants and assigns shall
be subject to all of the requirements stated herein.
The following is a list of standard insurance policies along with their respective
minimum coverage amounts required in this Agreement:
1. Commercial General Liability
• General Aggregate: $1,000,000
• Products & Completed Operations Aggregate: $1,000,000
• Personal & Advertising Injury: $1,000,000
• Per Occurrence: $500,000
• Fire Damage $50,000
• Coverage shall be at least as broad as ISO CG 00 01 10 93
• No coverage shall be deleted from standard policy without
notification of individual exclusions being attached for review and
acceptance.
2. Business Automobile Policy
• Combined Single Limits: $500,000
• Coverage for "Any Auto"
3. Errors and Omissions
• Limit: $1,000,000 for this project.
• For all architects, engineers, and/or design companies
• Claims -made form is acceptable
• Coverage will be in force for three (3) years after construction of
the Project is completed.
4. Workers' Compensation
■ Statutory Limits
■ Employer's Liability $500,000
■ Waiver of Subrogation required.
b. The following shall be applicable to all policies of insurance required herein.
1. Insurance carrier must have an A.M. Best Rating of A:VIH or better.
2. Only insurance carriers licensed and admitted to do business in the State of Texas
will be accepted.
3. Liability policies must be on occurrence form. Errors and Omissions can be on
claims -made form.
Agreement to Provide Professional Consulting_ Services, Page 4
• 4. Each insurance policy shall be endorsed to state that coverage shall not be
suspended, voided, canceled or reduced in coverage or in limits except after sixty
(60) days' prior written notice by certified mail, return receipt requested, has been
given to the City.
0
5. The City, its officers, agents and employees are to be added as Additional Insureds
to all liability policies, with the exception of the Errors and Omissions Policy
required herein.
6. Upon request and without cost to the City, certified copies of all insurance polices
and/or certificates of insurance shall be furnished to the City.
7. Upon request and without cost to the City, loss runs (claims listing) of any and/or
all insurance coverages shall be furnished to the City.
8. All insurance required herein shall be secured and maintained in a Consultant or
companies satisfactory to the City, and shall be carried in the name of Consultant.
Consultant shall provide copies of insurance policies required hereunder to the
City on or before the effective date of this Agreement.
14. Indemnification and Release.
CONSULTANT AGREES TO AND SHALL INDEMNIFY AND
HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS,
AGENTS, AND EMPLOYEES (HEREINAFTER REFERRED TO
AS THE "CITY ") FROM AND AGAINST ANY AND ALL CLAIMS,
LOSSES, DAMAGES, CAUSES OF ACTION, SUITS AND
LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF
LITIGATION, COURT COSTS, AND ATTORNEY'S FEES, FOR
INJURY TO OR DEATH OF ANY PERSON, FOR DAMAGE TO
ANY PROPERTY, OR FOR ANY BREACH OF CONTRACT,
ARISING OUT OF, OR IN CONNECTION WITH THE WORK
DONE BY CONSULTANT UNDER THIS AGREEMENT CAUSED
BY THE JOINT NEGLIGENCE OF THE CITY AND ANY OTHER
PERSON OR ENTITY AND /OR BY THE SOLE OR JOINT
NEGLIGENCE OF CONSULTANT AND ANY OTHER PERSON
OR ENTITY. IT IS THE EXPRESSED INTENTION OF THE
PARTIES HERETO, BOTH CONSULTANT AND THE CITY,
THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH
IS INDEMNITY BY CONSULTANT TO INDEMNIFY AND
PROTECT THE CITY FROM THE CONSEQUENCES OF (1) THE
CITY'S OWN NEGLIGENCE WHERE THAT NEGLIGENCE IS
Agreement to Provide Professional Consulting Services, Page 5
•
THE CONCURRING CAUSE OF THE RESULTING INJURY,
DEATH OR DAMAGE AND (2) CONSULTANT'S OWN
NEGLIGENCE, WHETHER THAT NEGLIGENCE IS THE SOLE
OR A CONCURRING CAUSE OF THE RESULTING INJURY,
DEATH OR DAMAGE. SUCH INDEMNITY SHALL NOT APPLY,
HOWEVER, TO LIABILITY ARISING FROM THE PERSONAL
INJURY, DEATH, OR PROPERTY DAMAGE OF PERSONS THAT
IS CAUSED BY OR RESULTS FROM THE SOLE NEGLIGENCE
OF THE CITY. IN THE EVENT THAT ANY ACTION OR
PROCEEDING IS BROUGHT AGAINST THE CITY FROM
WHICH THE CITY IS INDEMNIFIED, CONSULTANT FURTHER
AGREES AND COVENANTS TO DEFEND THE ACTION OR
PROCEEDING BY LEGAL COUNSEL ACCEPTABLE TO THE
CITY.THE INDEMNITY PROVIDED FOR IN THIS ARTICLE VII
SHALL SURVIVE THE TERMINATION OR EXPIRATION OF
THIS AGREEMENT.
By this Agreement, the City does not consent to litigation or suit, and the City
hereby expressly revokes any consent to litigation that it may have granted by the
terms of this Agreement or any other contract or agreement, any charter, or
applicable state law. Consultant assumes full responsibility for its work performed
hereunder a nd h ereby r eleases, r elinquishes a nd d ischarges t he C ity, i is o fficers,
agents, and employees from all claims, demands, and causes of action of every kind
and character, including the cost of defense thereof, for any injury to or death of
any person (whether they be either of the parties hereto, their employees, or other
third parties) and any loss of or damage to property (whether the property be that
of either of the parties hereto, their employees, or other third parties) that is caused
by or alleged to be caused by, arising out of, or in connection with Consultant's
work to be performed hereunder. This release shall apply with respect to
Consultant's work regardless of whether said claims, demands, and causes of action
are covered in whole or in part by insurance.
15. Subcontractors and Subconsultants. Consultant shall receive written approval
of the City's liaison prior to the use of any subcontractors or subconsultants. A copy of all
proposed contracts with subconsultants and/or subcontractors shall be given to the City before
execution of such contracts.
16. Records. Within ten days of the City's request and at no cost to the City, the City
will be entitled to review and receive a copy of all documents that indicate work on the project
18 that is the subject of this Agreement.
Agreement to Provide Professional Consulting Services, Page 6
• 17. Supervision of Consultant. Consultant is an independent contractor and the City
neither reserves nor possesses any right to control the details of the Work performed by
Consultant under the terms of this Agreement.
•
18. Governing Law. This Agreement has been made under and shall be governed by
the laws of the state of Texas. The parties further agree that performance and all matters related
thereto shall be in Hams County, Texas.
19. Venue. The obligations of the parties to this Agreement are performable in Harris
County, Texas, and if legal action is necessary to enforce same, exclusive venue shall lie in
Harris County, Texas.
20. No Third Party Beneficiary. This Agreement shall not bestow any rights upon
any third party, but rather, shall bind and benefit Consultant and the City only.
21. No Right to Arbitration. Notwithstanding anything to the contrary contained in
this Agreement, the City and Consultant hereby agree that no claim or dispute between the City
and Consultant arising out of or relating to this Agreement shall be decided by any arbitration
proceeding including, without limitation, a ny proceeding under the Federal Arbitration Act (9
U.S.C. Sections 1 -14), or any applicable State arbitration statute, including, but not limited to,
the Texas General Arbitration Act, provided that in the event that the City is subjected to an
arbitration proceeding notwithstanding this provision, Consultant consents to be joined in the
arbitration proceeding if Consultant's presence is required or requested by the City of complete
relief to be recorded in the arbitration proceeding.
22. Waiver. No waiver by either party to this Agreement of any term or condition of
this Agreement shall be deemed or construed to be a waiver of any other term or condition or
subsequent waiver of the same term or condition.
23. Complete Agreement. This Agreement represents the entire and integrated
agreement between the City and Consultant in regard to the subject matter hereof and supersedes
all prior negotiations, representations or agreements, either whether written or oral, on the subject
matter hereof. This Agreement may only be amended by written instrument approved and
executed by both of the parties. The City and Consultant accept and agree to these terms.
24. No Assignment. Consultant may not sell or assign all or part interest in the
transport of the materials to another party or parties without the prior express written approval of
the C ity M anager o f s uch s ale o r a ssignment. T he C ity in ay require any records or financial
statements necessary in its opinion to ensure such sale or assignment will be in the best interest
of the City.
25. Headings. The headings used in this Agreement are for general reference only
and do not have special significance.
Agreement to Provide Professional Consulting Services, Page 7
26. Severability. All parties agree that should any provision of this Agreement be
determined to be invalid or unenforceable, such determination shall not affect any other term of
this Agreement, which shall continue in full force and effect.
27. Ambijzuities. In the event of any ambiguity in any of the terms of this
Agreement, it shall not be construed for or against any party hereto on the basis that such party
did or did not author the same.
28. Non-Discriminatory Policy. Consultant agrees that as to all of its programs and
activities conducted on the subject premises, it shall comply fully with all Civil Rights Acts and
specifically will not discriminate against any person on the basis of race, color, national origin,
sex or by reason of being handicapped.
29. Compliance with Applicable Laws. The Agreement is subject to all legal
requirements in the City Charter and other laws, state and federal laws, regulations orders and
rules of the State, County, City and all other governmental agencies.
30. Attorney Fees: In the event that either the City or the Consultant or both shall file
or otherwise commence any legal action or proceeding against the other relating to this
Agreement including, but not limited to, a declaratory judgment action under state or federal law,
the parties hereby agree to waive any and all rights to recover attorneys' fees, to which the
prevailing party might otherwise be entitled.
31. Authority. The officers executing this Agreement on behalf of the parties hereby
represent that such officers have full authority to execute this Agreement and to bind the party
he /she represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deemed to be an original, but all of which shall constitute but one
and the same Agreement on the date first written above.
CITY OF BAYTOWN, TEXAS
By:
GARY JACKSON, City Manager
ATTEST:
GARY W. SMITH, City Clerk
• APPROVED AS TO FORM:
Agreement_ to Provide Professional Consulting Services, Page 8
FROM MAXIMUS FAX NO.
ACIQ RAN1l1tEL, SR., ,i y Attorney
STATE OF TEXAS
COUNTY OF HARRIS
Mar. 26 2003 11:22AM P2
M.AXIMUS, INC.
s
By:
J M/ enzie, Vice P dent
Beforc me on this day personally appeared Jerry McKenzie, in his capacity as Vice
President of Maximus, Inc., on behalf of such Consultant,
X— known to me;
proved to me on the oath of _ ; or
proved to me through his current
{description of identification card or other document issued by the federal
government or any state government that contains the photograph and signature of
the acknowledging person)
(� one)
to be the person whose name is subscribed to the foregoing iiustruiwwt and acknowledged to me
that be executed the same for the purposes and consideration therein cxpressed.
SUBSCRIBED AND SWORN before me this day of _ %�% 2003.
Notary Public in and for the State of ansas
ELLEN ANDERTON
katarr Pt;�!t of Kenm
(IMY!Mt. Explrm /- H -6 ^J
l' :1K�ron1l�ila,1C'untn +ctslW�dci' and ScwCP Ratc CantractlAaylnwnngrccmcnt2IX13 C'Ican.dae
AAgMe.mcnt to Provide FmA65ional Consulting Services. Pagc 9
•
EXHIBIT
1
�r
•
January 27, 2003
Travis Doughty
Purchasing Manager
City of Baytown
2123 Market Street
Baytown, Texas 77520
281 - 420 -6525
281 - 420 -6542 (Fax)
Re: Proposal to Perform a Water & Sewer Rate Study, RFP 0311 -01
Dear Mr. Doughty:
MAXIMUS®
HELPING GOVERNMENT SERVE THE PEOPLE'
Via Federal Express
MAXIMUS, INC. (MAXIMUS) is pleased to submit this proposal to provide the professional services
required for a comprehensive water and wastewater cost of service, multi -year financial plan, and rate
design study. We believe we possess all the expertise, experience, and skills required to perform this
engagement. We believe we should be chosen for this assignment for the following reasons:
Our project team is comprised of national and regional experts in the fields of water and .
wastewater costing. We bring to this engagement a senior -level project team. This team is
comprised of MAXIMUS employees, and therefore we will not require the use of subcontractors.
Members of the project team have been responsible for more than 125 separate utility cost of service
and rate design studies nationwide for communities as small as 200 people to one as large as
3,500,000 (Los Angeles Power & Light). More importantly, the majority of our assignments have
been with small to medium sized municipalities the size of Baytown. Section 11 of this proposal
describes in detail our project team's record of quality professional consulting work specific to water
and wastewater rate studies.
2. The majority of our rate work has been with cities and utilities in the State of Texas, Florida,
and Georgia, that wished to consider conservation rates. Dating back to 1984, we have
successfully implemented conservation rates in numerous cities, including the majority of those
listed in the next paragraph.
The majority of our rate work has been with high- growth cities in the State of Texas that
incorporate impact fees into the rate - setting process. Bob McLain has performed numerous water
and wastewater studies for cities in the State of Texas, which have grown tremendously over the last
10 -20 years, and therefore have relied substantially on water and wastewater impact fees to help pay
for the impact of growth. Our experience in this area will be valuable to the City of Baytown, since
the level of impact fees adopted can significantly impact the required revenues needed from rate
payers. These cities have included Plano, Allen, McKinney, Carrollton, Richardson, Coppell, Flower
Mound, Grapevine, Keller, Lancaster, DeSoto, Red Oak, Corinth, Rockwall, Sachse, Princeton,
North Richland Hills, and The Colony. For a more comprehensive list, see page 17 in Section I1.
13601 PRESTON ROAD • SUITE 40OW • DALLAS, TX 75240 • 972.490.9990 • FAX 972.490.3040
I� 4. Our ratemaking approach and workplan is based on a proven interactive and educational
process designed to identify the City's philosophy, community values, and policies concerning
f trends in water and wastewater rate' design. The staff and /or Council workshops, with the
presentation of alternatives along with the explanation of policy issues, are developed with the idea
that the ideal rate structure:
a. is fiscally responsible;
b. is technically and legally justifiable, and;
c. is politically acceptable,
Therefore, the result will be rate structures that will be a reflection of policies and values that the
City considers important. Furthermore, we have had considerable experience developing "transition
plans" where rate design changes have been "phased -in" in order to soften the impact on customer
groups.
Our project team uses the most comprehensive, easy to use, rate model available on the market
today. Each time we perform a rate study, we use MAXIMUS's Planning and Rate Model
(PAR), and tailor the model to fit the specific needs of each client. MA.XIMUS's Planning &
Rate Model (PAR) has been developed, designed and redesigned over the last 20 years, based on the
needs of Finance Directors, Budget Directors, and City Engineers across the nation. The integration
of the financial planning module, cost of service modules, and the rate design modules gives the
Finance office the most effective management of a "transition plan ", whereby subsidies between
customer groups are eliminated over a period of years so that no particular group of customers
receive "rate shock ". Furthermore, we believe the model gives the Finance office the greatest
"flexibility" when planning debt issues required to fund capital improvement plans. As part of the
scope of the engagement, we can turn the model over to the City at the conclusion of the study.
Appendix B will give the reader highlights of the PAR model.
6. We believe we have an excellent record of performance in Texas and the nation, as illustrated
by our ability to retain our rate study clients over the last twenty years. We have worked hard
over the last twenty years to develop excellent, long -term relationships with our rate study clients
across the nation. Many of our City Managers and Finance Directors have continued to use our
services as they have moved from City to City. We have a reputation for going beyond the call of
duty to provide outstanding service to our clients. We encourage you to call our references. We will
work hard to provide the same level of outstanding service to the City of Baytown.
I am an authorized agent of MAXIMUS, INC., empowered to submit this bid and am authorized to sign
the proposal. The following document states our qualifications, technical approach, and references. The
fee we are quoting in this proposal shall be valid for one hundred and twenty days (120) days from the
receipt of this proposal. The fee we are quoting in Section IV is intended to be the total fixed price for
the scope of work described in this proposal, unless designated otherwise. We look forward to working
with you and your staff on this study and are available to discuss our proposal at your convenience.
Please feel free to contact Bob McLain at (972) 490 -9990.
MAXIMU�}S AAuthori ed Officer
• e 7 McKenzie
Vice President
MAXIMUS
I MAXIMUS
JIELYGI'C GOVERNAiENT SERI�E TJiE PEOPLE`
6
I. Approach & Work Plan ............................................................................. ...............................
1
A.
MAXIMUS's Approach to Utility Ratemaking ................................... ...............................
1
B.
MAXIMUS's Approach to Project Management ................................. ...............................
2
C.
How MAXIMUS Addresses the Issue of Quality Control ................... ...............................
2
fD.
Overview of Workplan Tasks .............................................................. ...............................
3
E.
Detailed Workplan Tasks ..................................................................... ...............................
7
II. Project Team Profile .................................................................................. ...............................
16
A.
Project Team's Qualification Matrix ................................................... ...............................
16
B.
Project Team Highlights ....................................................................... ...............................
16
IlC.
Project Team's Role Matrix ................................................................. ...............................
18
D.
References ............................................................................................ ...............................
19
E.
Comprehensive Project Listing ............................................................ ...............................
21
III. Corporate
Profile ........................................................................................ ...............................
24
Overview ... ..................................................................................... ...............................
24
fA.
B.
Corporate Offices ................................................................................. ...............................
24
C.
The Cost Services Division ................................................................... ...............................
24
D.
The Government Utility Rate Practice ................................................. ...............................
24
IV. Engagement Fees ....................................................................................... ............................... 28
APPENDIX A — Data Collection Needs .......................................................... ............................... 29
APPENDIX B — Highlights of the Planning and Rate Model ( PAR) .............. ............................... 32
APPENDIXC — Resumes ................................................................................ ............................... 35
APPENDIX D — Required Certifications ........................................................ ............................... 44
MAXIMUS
HELPING GOVERNMENT SERVE THE PEOPLE"
lie
SECTION I:
APPROACH & WORKPLAN
0
MAXIMUS
HELPING GOVERNMENT SERVE THE PEOPLE°
0 SECTION I: APPROACH & WORKPLAN
A. MAXIMUS'S APPROACH TO UTILITY RATEMAKING
MAXIMUS's approach to a comprehensive financial planning and cost of service engagements is
governed by the idea that the ideal rate design must satisfy the criteria of revenue
adequacy /stability, equity, efficiency (conservation), administrative simplicity, and legal
conformity. Our water cost of service methodology is guided by the American Water Works
Association's (AWWA) manual titled "Ml -Water Rates ". Our wastewater cost of service
methodology is guided by the Water Environment Federation's (WEF's) guidelines. These
approaches are customized to meet the City's objectives within the following guidelines:
•
Revenue Adequacy /Stability is the most fundamental of all considerations since it
recognizes that rates should be cost - driven. When a rate alternative is evaluated, it is
essential that it produces enough overall revenues to properly operate and maintain the
systems and that it produces enough revenues even when there are changes in the
demands for service, such as "wet" years vs. "dry" years.
+ Equity requires that rates and charges should be the result of the equitable recovery of
costs and that no undue discrimination among customer classes should result from this
recovery of costs. Rates and charges should also recognize that customer acceptance will
center on preconceived ideas of equity and fairness.
• Efficiency (conservation) refers to the ability of a rate schedule to encourage the wise use
of the resources consumed in the service provided by the utility. This has increasingly
come to mean the adoption of "conservation" rates. Efficiency considerations require, at
least that:
♦ Rates should reflect the incremental cost of providing the next unit of service. If
capacity is a limiting factor, for example, then rates should reflect capacity costs.
♦ Rates should be similar for customers or classes of customers served under
similar conditions.
• Administrative simplicity recognizes that limits must be placed on the number of
customer classes, complexity of the.rate structure, and the frequency of billing.
• Legal constraints are a consideration because rate structures must incorporate applicable
local, state, and federal statutes. Where questionable areas exist, they should either be
buttressed by documentation or modified.
• Customer impact is the primary consideration when changing rates, after all other criteria
are considered. MAXTMUS works with our clients using a multi -year approach to phase
-in cost - causal rates so that huge increases to any one group of customers are minimized.
SECTION I: APPROACH & WORKPLAN PACE 1
•
0
MAXIMU5
HELPING GOVERNMENT SERVE 771E PEO
• D. OVERVIEW OF WORKMAN TASKS
Purpose of this section:
The purpose of this section is to present the technical approach to the project. Each task that will
be performed to achieve the objectives we believe are necessary, along with the associated
meetings and deliverables.
Goals of this engagement:
Following are the goals to be achieved with this engagement, based on our understanding of the
RFP:
1. To develop a water and wastewater rate structure that equitably distributes costs to customers
and adequately funds current costs and future needs.
2. To develop a Microsoft Excel based rate design model that City staff can update on an annual
basis to monitor the adequacy of the rates.
Objectives of this engagement:
Following is a list of the objectives to be achieved with this engagement, based on our
understanding of the RFP. Please note, that in the majority of the instances, we have listed the
objectives in the order in which they will be achieved. Furthermore, we have restated some of
the objectives with different wording than listed in the RFP. For example, typically we will
ensure we identify the costs of providing other, non -rate services that are associated with tap
fees, connect fees, etc., prior to identifying the revenue requirements over the planning period.
When this tasks is performed in this order, we can incorporate any recommended changes of
these fees into the multi -year financial plan, and therefore show the impacts on the rates.
1. To collect the information necessary to perfom'i the comprehensive cost of service and rate
design study.
2. To independently identify the financial condition of the overall water and wastewater
enterprise fund.
3. To review, analyze, and evaluate the integrity of the consumption history that is provided to
us by the City.
4. To identify a "normal" average consumption year for each class of customer (this will be
further explained in the task).
5. To identify the full cost of providing non -rate water and wastewater fund fees, such as tap
• fees, connect fees, locate fees, etc.
SECTION I. APPROACH & WORKPLAN PAGE 3
MAXIMUS
11ELPING GOVERNMENT SERVE THE PEOPLE"
�• 6. To review, analyze, and evaluate the adequacy of the existing required customer deposits,
and make reconvnendations to change, if necessary.
•
7. To review, analyze, and evaluate the planned water and wastewater capital improvement
plan, and related impact fees, for the purpose of incorporating all capital improvement
funding sources into the multi -year financial plan.
8. To identify the revenues required from water rates and wastewater rates over the ten -year
planning period, using the multi -year financial plarming model, identifying any subsidies that
exist between the water and wastewater utilities.
9. To distribute the costs of providing water and wastewater service for each year of the
planning period into the customer classes, identifying any subsidies that exist between the
classes of customers.
10. To design alternative retail rate structures that will equitably recover the costs of each water
and wastewater customer class, including outside retail customers.
11. To design, as alternatives rates, conservation rates.
12. To develop special rates, as an alternative, that contain economic development incentives;
13. To identify the customer impact of each alternative rate structure, including how the City
compares to the surrounding cities.
14. To prepare and present the findings, conclusions, and recommendations of the engagement.
15. To install the rate model and train staff on use of rate model for future in -house updates.
SECTION I: APPROACH & WORKPLAN PAGF_ 4
MAXIMUS
HELPING GOVERNMENT SERYE i!1 G PEOPLE
10 Overview of project work plan:
We have organized the tasks that have to be accomplished to meet the goals and objectives into
five phases:
Phase I: Collect, review, analyze, and evaluate the data necessary to complete the
engagement
Phase II: Develop multi -year financial plan
Phase III: Design rate structure alternatives
Phase IV: Prepare and present findings
Phase V: Install PAR model and train staff
Meetings, deliverables & timinjZ of engagement:
The following table will provide the reader with a list of the tasks in the engagement, as well as
the meetings, deliverables, and timing.
Proposed
Week
Meeting
Meeting Deliverable By Week
Task
Descri !ion
Number
Date
Number Number EnT ding
1:
Conduct City staff meeting # 1 to
1
02/14
1 02/14
kickoff engagement
2:
Collect data
1
02/14
3:
Assess the financial condition of the
1
02/14
utility fund
4:
Proof the integrity of the consumption
1 — 3
02/28
history
5:
Identify "normal' consumption year
1 —3
02/28
6:
Review, analyze, & evaluate non -rate
2-4
03/07
fees
7:
Review, analyze, & evaluate
4
03/07
adequacy of customer deposits
8:
Prepare memo # 1 on non -rate fees &
5
03/14
deposits
9:
Conduct City staff meeting # 2 to
5
03/14
2 1 03/14
review memo report # I on non -rate
fees and deposits
10:
Revise memo report # 1, if necessary
6
03/21
It:
Load operating and maintenance
5-7
03/28
expenditures and revenues into the -
rate model
12:
Load debt amortization schedules into
5-7
03/28
the rate model
13:
Incorporate capital projects and their
5-7
03/28
related funding into the revenue
requirements over the plamiing period
14:
Allocate any shared costs between
5-7
03/28
water and wastewater
15:
Project revenues required over the
7
03/28
planning period
SECTION I: APPROACH & WORKPLAN
PACE 5
MAXIMUS
UELPING GOVERNMENT SERVE THE PEOPLE"
Proposed
Meeting Meeting Deliverable By Week
Date Number Number Ending
03/28
03/24 3 2 03/28
04/17 4 3
04/25 5 4
05/12 6 5
05/28 7 6
Meeting purpose
1 To kickoff engagement
2 To review memo report # t on non -rate fees and deposits
3 To review memo report # 2 on revenue requirements (multi -year financial plan)
4 To review memo report # 3 on impact of rate design alternatives
5 To review draft of final report and presentation
6 To present findings to City Council
7 To install model and train staff over two -day period
SECTION L• APPROACH & WORKPLAN
04/04
04/18
04/18
04/18
04/18
04/25
04/25
04/25
05/02
05/16
05/23
05/30
Planned
Date
02/14
03/14
03/24
04/17
04/25
05/12
05/28
PAGE 6
Week
Task
Description
Number
16:
Prepare memo report # 2 on revenue
7
requirements
17:
Conduct City staff meeting # 3 to
7
review memo report .# 2 on revenue
requirements
18:
Revise memo report # 2, if necessary
8
19:
Design rate alternatives, including
8-10
reuse rates
20:
Determine impact of each rate
10
alternative on customers.
21:
Prepare memo report # 3 on customer
10
impact of rate design alternatives
22:
Conduct City staff meeting # 4 to
10
review rate alternative report
23:
Revise rate alternatives, if necessary
11
24:
Prepare draft of final report and
11
presentation
25:
Conduct City staff meeting # 5 to
11
review draft of final report
26:
Revise report, if necessary & deliver
12
copies to City
27:
Present findings to City Council
14
28:
Finalize the customization of the rate
15
model
29:
Install rate model & conduct training
16
sessions
Recap
of project meetings:
MAXIMUS
UELPING GOVERNMENT SERVE THE PEOPLE"
Proposed
Meeting Meeting Deliverable By Week
Date Number Number Ending
03/28
03/24 3 2 03/28
04/17 4 3
04/25 5 4
05/12 6 5
05/28 7 6
Meeting purpose
1 To kickoff engagement
2 To review memo report # t on non -rate fees and deposits
3 To review memo report # 2 on revenue requirements (multi -year financial plan)
4 To review memo report # 3 on impact of rate design alternatives
5 To review draft of final report and presentation
6 To present findings to City Council
7 To install model and train staff over two -day period
SECTION L• APPROACH & WORKPLAN
04/04
04/18
04/18
04/18
04/18
04/25
04/25
04/25
05/02
05/16
05/23
05/30
Planned
Date
02/14
03/14
03/24
04/17
04/25
05/12
05/28
PAGE 6
MAXIMUS
10 E. DETAILED WORK-PLAN TASKS
Phase I: Collect, Review. Analvze, and Evaluate Data:
'ask 1. Conduct City staff meeting # 1 to kickoff engagement. An onsite meeting will be
conducted with the City to collect, review, and evaluate the information necessary to
perform the study
Task 2. Collect data. We will collect the data and information that is readily available, or has
been brought to the meeting by the staff, and to identify which information is not
readily available and must be collected by the end of the initial on -site visit.
Sometimes the information that is brought to the initial meeting by City staff is
incomplete, or it is in a different format than what is required for the engagement. In
these cases, arrangements will be made to collect the required information by the end
of our initial site visit, of surrogate information will be used for the rate study.
Task 3. Assess the financial condition of the utility fund. We will independently evaluate
the existing financial condition of the water and wastewater utility. The consolidated
financial statements of the utility's for the last three years will be examined and
evaluated. Furthermore, we will identify for our purposes the components of the
restricted asset accounts of the water and wastewater utility's. For example, we'd like
to identify the amounts of the restricted assets that are reserved for revenue debt
interest and principal payments, revenue debt reserves, customer deposits, bond
proceeds, etc. The findings of this evaluation will be incorporated into our first report
deliverable.
Task 4. Proof the integrity of the consumption history. This is a very important task, since
we will use this data to develop rate design alternatives. The FY 2002 twelve -month
billing history will be sorted and summarized and incorporated into the rate model.
The accuracy of the water and wastewater consumption and billing history will be
verified so that a sound foundation will be used to calculate rate alternatives.
Task 5. Identify "normal" consumption year. The purpose of this task will be to "even out"
the "dry" and "wet" years experienced over the last several years. A five -year history
of water and wastewater monthly billings, consumption billed (billings and
consumption by meter size within customer class), will be reviewed, analyzed, and
evaluated in order to identify a "normal year ". This "normal" year will be used as a
basis to "adjust" the twelve -month detailed billing history for FY 2001 — 2002.
` Task 6. Review, analyze, & evaluate non -rate fees. An analysis of expenditure and revenue
{` data will be performed to determine what costs are appropriate to allocate to fee
related service areas and to determine the current level of revenue recovery.
Additionally, an analysis of how many applications, permits, etc. will be conducted to
determine the amount of fee for service activity.
I
SECTION I: APPROACH & WORKPLAN PACE 7
MAXIMUS
• Task 7. Review, analyze, & evaluate adequacy of customer deposits. An analysis will be
perfomled of the average billing cycle for each class of customer, and the adequacy of
the existing deposits will be detennined. The results of this analysis will become the
basis for recommending any changes in the existing deposits.
Task 8. Prepare memo report # 1 on non -rate fees and deposits. Memo report # 1 will be
prepared, conveying the findings to date concerning the following issues:
• Results of consumption analysis and revenue proof test.
• Results of the evaluation of the financial condition of the water and wastewater
utility.
! Results of analysis of the non -rate fees and charges.
• Results of the analysis of the adequacy of the deposits.
is
Task 9. Conduct City staff meeting # 2 to review memo report # 1 on non -rate fees and
deposits. An onsite meeting will be held for the purpose of reviewing the memo
report.
Task 10. Revise memo report # 1, if necessary. Memo report # 1 will be revised, if necessary,
based on the results of the meeting with City staff.
SECTION 1: APPROACH & WORKPLAN PACE 8
MAXIMU5
!I FLYING COVERNAiENT SER 1'E TIdE PEOPLE"
I• E. DETAILED WORK.PLAN TASKS
(CONTINUED)
Phase 11: Develop Multi -Year Financial Plan:
The purpose of this phase is to identify and forecast the revenues required to support the water
and wastewater utilities over the ten -year plaiming period. The objectives to be achieved with
Phase II:
• To prepare forecasts of revenues, operation and maintenance expenditures, and capital
improvements.
• To incorporate the cost of the capital projects over the planning period, including the use of
impact fees to partially pay for eligible projects.
• To allocate any shared costs between the water and wastewater funds.
• To identify any subsidies between the water and wastewater utilities.
• To identify any percentage increases in revenues required in the water and wastewater
revenues generated by rates.
• To prepare a memo report reporting the findings of Phase II.
• To present findings of Phase H at a meeting with City staff.
• To revise memo report # 2, if necessary, based on the results of the staff meeting.
In summary, the total cost of service and overall revenue requirements for each utility will be
identified for each year of the planning period, based on the City's most recently adopted
operating and capital budgets. Utilizing data collected, reviewed, and analyzed in previous tasks,
I we will use the financial planning component of our rate model to identify all costs of service for
each utility for the planning period by establishing the following components:
• Operating costs of each system;
• Required system maintenance costs for each utility;
• Required system replacement costs for each utility;
• City indirect departmental and overhead costs;
• Existing debt principal and interest payments;
• Planned debt principal and interest payments;
• Revenue debt coverage requirements;
• Revenue debt reserve requirements;
• Operating reserves requirements;
• Any other user fees, such as ancillary fees, shall be used to offset the cost of service
recovered from rates.
I
SECTION I: APPROACH & WORKPLAN PAGE 9
I
MAXIMUS SERY E TId E PIi DPLE`
• Preliminary revenue increases will be calculated for each year of the planning period to
independently fund each utility's costs identified as part of this Phase. The financial planning
components of the cost of service will be identified in considerable detail so that all assumptions
that drive the cost of service will be fully disclosed and documented, much as you would a
budget document. The debt interest and sinking fund, the debt reserve fund, the capital
improvement fund, and any other restrictions of cash, such as impact fees, will be developed as
supporting schedules for staffs review.
Task 11. Load operating and maintenance expenditures and revenues into the rate model.
The actual revenues and expenditures for FY 2001, and FY 2002, as well as the FY
2003 budgeted revenues and expenditures will be incorporated into the rate model at
the line item level.
Task 12. Load debt amortization tables into the rate model. The principal and interest
payments for the existing debt and any plarined debt that is or will be supported by the
water and wastewater fund will be incorporated into the rate model.
Task 13. Incorporate capital projects and their related funding into the revenue
requirements over the planning period. The most critical costs that will impact the
revenues required from rates will be the level of capital funding necessary from rates,
and the level of funding from impact fees. Our time commitment will consist of
integrating the funding of the capital improvement plan projects either with impact
fees, or with bond issues, or with operating funds.
Task 14. Allocate any shared costs between the water and wastewater utilities. Any costs
shared by the water and wastewater services will be allocated between the two
services.
Task 15. Project revenues required for the planning period (MYFP). The revenue
requirements for water and wastewater will then be identified, over the multi -year
planning period. Any subsidies that exist between the water and wastewater utilities
will be identified. Any increases in water and /or wastewater revenues will be
identified.
Task 16. Prepare memo report # 2 on revenue requirements. A short memo report will be
prepared on the revenue requirements. The memo report will contain the following
findings:
• The key planning assumptions that drive the multi -year financial plan, such
as growth, staffing increases, inflation drivers, capital improvements, and
the planned debt issue.
• Any existing subsidies that exist between water and wastewater.
• The overall water revenue percentage increases and overall wastewater
revenue increases that will be necessary to fiend the anticipated costs over
• the multi -year planning period.
SECTION I: APPROACH & WORKPLAN PAGE 10
MAXIMUS
HELPING GO VERNAIENTSERI'E TPIE PEOPLE"
• Task 17. Conduct City staff meeting # 3 to review memo report # 2 on revenue
requirements. A few days after the memo report has been e- mailed to the City, a
meeting will be held onsite with City staff and City management on the findings
conveyed in the memo report on the multi -year financial plan.
140
Task 18. Revise memo report # 2, if necessary. The MYFP will be revised, if necessary,
based on the results of the meeting with City staff.
SECTION I: APPROACH & WORKPLAN PAGE 11
MAXIMUS
HELPING GO VPervnrrn�r.cravF"7-111. vr:nnr r^
• E. DETAILED WORKPLAN TASKS
(CONTINUED)
•
Phase III: Develo meat Of The Rate Design Alternatives:
While the tasks performed in Phase II will identify the level of revenues required, the tasks
performed, as part of Phase III, will identify alternatives of how the City will collect the
revenues. The objectives to be achieved with Phase III are:
• To develop proposed water and sewer rate alteratives, including reuse rates, as well as
industrial wastewater surcharge rates.
• To compare revenues "generated under the existing rates for each customer class with the
allocated cost of service to determine the adequacy of present revenue levels and the
indicated adjustment in rates required to equitably distribute costs to the respective
classes of customers.
Once the cost of providing service to each customer class is known, the revenue requirements of
each group can be calculated. The City may elect to maintain retail rates that achieve objectives
related to community values, maintaining subsidies between retail customer classes. Even so, it
will do so with better knowledge of its true costs and make more informed decisions regarding
customer rates. The rate development process is organized as follows:
• Distribute costs into the system components;
• Classify water system costs based on the overall demand and peaking
characteristics of the water system;
• Classify wastewater system components;
• Calculate average cost of service per unit of service and distribute costs into the
customer classes;
• Design service charges and commodity rates, including reuse rates;
• Compare the distributed cost of service with the revenues generated with existing
rates and determine the indicated adjustment in rates required to equitably recover
the cost of service;
• Illustrate the financial impact of the retail rate alternatives on the water and
wastewater customers;
• Illustrate how the calculated water and wastewater monthly and annual bills
compare under each rate alternative, as well as to other utility's rates in the region.
SECTION I: APPROACH & WORKPLAN PAGE 12
MAXIMUS
IIELP /NG GOVE• RNA/ENT SERVE THE PEOPLE'
• Task 19. Design rate alternatives, including conservation rates. As many as three water rate
design alternatives and three wastewater rate design alternatives will be prepared.
Rates will be designed for each customer classes based on the consumption
characteristics of each class. Rates will also be based on the goals and objectives that
the City wishes to achieve with this engagement. Service charges and consumption
charges will be calculated for each customer class based on the cost of service
identified for each customer class. Furthermore, conservation rates and economic
development incentive rates will be developed.
I*
Task 20. Determine the impact of each rate alternative on customers. The purpose of this
task is to illustrate the impact of proposed rate alternatives on customers and how they
compare to surrounding utilities in the region.
• Selected municipal utilities in the region will be surveyed.
• Revenues generated by the existing rates will be compared with the costs
distributed to each customer class and the indicated adjustment in rates required
will be calculated.
• Each customer's water and wastewater monthly bill, as well as annual bill, will be
calculated using each rate alternative, as well as using selected other City rates.
• A customer impact profile will be created illustrating the financial impact of each
rate alternative, based on the calculations performed. The profile will illustrate
how many customers will see increases in the annual bills, as well as decreases in
the annual bills.
Task 21. Prepare memo report It 3 on customer impact of rate design alternatives. A short
rate alternative memo report will be prepared. The impact of each rate alternative will
be highlighted for discussion and evaluation. The report on customer impact will be e-
mailed to the City a few days before we have our onsite review meeting.
Task 22. Conduct City staff meeting 4 4 to review rate alternative report. An onsite meeting
will be conducted by Maximus onsite for the staff's review of the customer impact of
the three rate alternatives.
Task 23. Revise rate alternatives, if necessary. The rate design alternatives wilt be revised, if
necessary, based on staff's review. The revised memo report on customer impact will
then be e- mailed to the City.
SECTION I: APPROACH & WORKPLAN PACE 13
•
MAXIMUS
HELPING GOVERNAIENT SER PE THE PEOPLE'
E. DETAILED WORKPLAN TASKS
(CONTINUED)
Phase IV: Prepare And Present Findings Of The Engagement:
Task 24. Prepare draft of final report and presentation. A draft of the final report and
presentation will be prepared. The draft of the final report will be e- mailed to the City
a few days before we have our onsite review meeting.
Task 25. Conduct City staff meeting # 5 to review draft of final report and presentation.
An onsite meeting will be conducted with City staff and management for the purpose
of reviewing the draft report and presentation.
Task 26. Revise final report and presentation, if necessary, and deliver copies of report to
City. The final report and presentation will be revised, if necessary, based on the
results of the meeting with City management and staff. The final report and
presentation will then be e- mailed to the City a few days before the presentation to the
City Council.
Task 27. Present findings to the City Council. An onsite presentation (Meeting # 6) of the
findings will be made to City Council.
SECTION I: APPROACH & WORKPLAN PAGE 14
0
MAXIMUS 11 ELPING G'OVERNAIENT SER PIE 771E PEOPLE
E. DETAILED WORKPLAN TASKS
(CONTINUED)
Phase V: Installation and training of PAR model:
We will make most of our revisions to our model as we go through the study process,
customizing our model as we use it ourselves.
Task 2$: Finalize the customization of the model. MAXIMUS will finalize the model and get
it ready to turn over to the City.
Task 29: Install rate model & conduct training sessions. Training sessions will be held with
staff members over a two -day period
SECTION I: APPROACH & WORKPLAN PAGE 15
MAXIMUS
/IELPING GOI'ERcVAlENTSGRI'E77IL- PEOPLE"
i SECTION II: PROJECT TEAM PROFILE
•
A. PROJECT TEAM'S QUALIFICATION MATRIX
The following table recaps the qualifications of the project team and their credentials.
B. PROJECT TEAM HIGHLIGHTS
Jerry McKenzie, Project Director. Mr. McKenzie will serve as the project director on this
engagement. He will be responsible for reviewing each deliverable before it is released to
Baytown. Mr. McKenzie is a Vice President with MAXIMUS, INC. Since 1986, he has been
responsible for managing several successful engagements in both the utility and governmental
environments. Mr. McKenzie graduated with Honors from Wichita State University in Kansas
with a Bachelor of Business Administration in Accounting in 1980. He has been involved with
the local chapter of the Institute of Internal Auditors and has taught cost allocation and software
design at the local and national level since 1986.
SECTION II: PROJECT TEAM PROFILE Page 16
Jerry
Robert
James
Bret
McKenzie,
McLain,
Brown,
Schlyer,
Team
Project
Project
Project
Project
Member
Director
Manager
Consultant
Consultant
Education
BBA,
BBA,
BBA,
BBA,
Accounting
Accounting
Accounting
Accounting
MAXIMUS
Vice- President,
Senior Manager,
Manager,
Manager,
Position
Government
Government
Gover unent
Government
Utility Rate
Utility Rate
Utility Rate
Utility Rate
Practice
Practice
Practice
Practice
Role in
Director of
Project
Project
Project
Engagement
Engagement
I Manager
Consultant
Consultant
Years of
20+
20+
14+
8+
Experience in
Field
Utility
15+
100+
5
2
Rate
Shldies
PAR Rate
N/A
20+
N/A
NIA
Model
Installations
Professional
GFOA
GFOA, GFOAT,
GFOA,
GFOA
Associations
APWA
GFOAT
AWWA, WEF
Office Location
Wichita, KS
Dallas, TX
Dallas, TX
Wichita, KS
Role in
Quality
50% of tasks,
Assist
Assist
engagement
Control
All presentation
Bob
Bob
McLain
McLain
B. PROJECT TEAM HIGHLIGHTS
Jerry McKenzie, Project Director. Mr. McKenzie will serve as the project director on this
engagement. He will be responsible for reviewing each deliverable before it is released to
Baytown. Mr. McKenzie is a Vice President with MAXIMUS, INC. Since 1986, he has been
responsible for managing several successful engagements in both the utility and governmental
environments. Mr. McKenzie graduated with Honors from Wichita State University in Kansas
with a Bachelor of Business Administration in Accounting in 1980. He has been involved with
the local chapter of the Institute of Internal Auditors and has taught cost allocation and software
design at the local and national level since 1986.
SECTION II: PROJECT TEAM PROFILE Page 16
MAXIMUS
!HELPING COVERNAIENT SEX VE 77I E PEOPLE'
I, Mr. McKenzie has been responsible for utility rate studies and management audits, the
development of administrative and general capitalization rates, subsidiary cost allocation plans
iand overhead allocation methods for jointly owned power plants. Heavily involved in assisting
utilities in dealing with restructuring, Jerry has authored two electric rate unbundling manuals for
the American Public Power Association (APPA). These manuals serve as a guidepost for
municipal utilities to utilize in unbundling service costs as they prepare for retail wheeling in a
competitive, market- driven environment. He - has also been involved in the design and
implementation of internal service billing algorithms for administrative departments such as data
processing, building service, fleet, stores handling, and engineering. In addition, he has an
extensive knowledge of the Federal Energy Regulatory Commission's (FERC) statutes and
regulations and currently serves as the instructor for APPA's Public Utility Accounting course.
Robert McLain, Project Manager and Cost of Service and Rate Design Specialist. Mr.
McLain is a senior -level expert in water, wastewater, solid waste, and storm water cost of service
and rate design studies. Mr. McLain brings to this engagement over 20 years of experience with
water and sewer cost of service and rate design experience, particularly in Texas. He has
performed over 100 rate studies during this time. Mr. McLain has a Bachelor's of Business
Administration with an emphasis in Finance and Accounting. Mr. McLain will be the day -to -day
project manager for this engagement. Mr. McLain has extensive experience with rate costing and
design in Texas. Mr. McLain has had extensive experience over the last twenty years developing
water and wastewater cost of service and rate design engagements in Texas. Texas clients have
included:
Addison
Allen (3)
Alvin
Bartlett
Bartonville WSC (4)
Bedford
Burleson
Carrollton (2)
Commerce
Coppell
Corpus Christi
Corinth (2)
Denton
DeSoto (2)
Duncanville
Farmers Branch (other)
Flower Mound (3)
Forest Hills
Paris
Gainesville (7)
Plano (4)
Granbury (3)
Princeton
Grapevine
Red Oak (4)
Greenville (Other)
Richardson (2)
Hackberry (2)
Richland Hills
Highland Village (2)
Rockport (3)
Iowa Park
Rockwall (2)
Keller (3)
Rosenberg (4)
Lancaster
Royse City (2)
LaPorte (2)
Sachse (2)
McAllen (2)
San Benito (2)
McKinney (4)
Santa Rosa (2)
Med Star (Tarrant County)
Terrell (2)
Nacogdoches (2)
The Colony
North Richland Hills
Watauga (Other)
Pampa
Waco (2)
Addison, Coppell, Duncanville, Grapevine, Highland Village, La Porte, and North Richland Hills
were performed by Bob McLain when he was with another firm, in the early to late 1980's.
Note: Over the last twelve years we have performed rate studies for various additional clients
across the country, such as Newark, New Jersey, Los Angeles, CA, Chicago, IL, Norfolk, VA,
and Hollywood, FL.
SECTION II: PROJECT TEAM PROFILE Page 17
MAXIMUS
11ELPING GUVERNAMENT SEX I'E T'lIE PEOPLE''
James T. Brown, Manager. Mr. Brown specializes in cost of service and rate development for
MAXIMUS. Mr. Brown has compiled numerous costing studies for state and local governments
Iin Texas, New Mexico, Arizona, Louisiana, Oklahoma, Colorado, and Nevada during his tenure
of fourteen years with Maximus. Prior to joining MAXIMUS, Mr. Brown was employed by a
regional public accounting firm that performed financial audits of city and county entities.
Bret Schlyer, Project Consultant. Bret Schlyer is a Manager in the Wichita, KS office of
MAXIMUS. His responsibilities include a wide -range of indirect cost allocation projects and
analysis within Texas, Kansas, Oklahoma and Louisiana and with utilities nationally. Mr.
Schlyer graduated with Honors from the University of Kansas with a Bachelor of Science degree
in Accounting in 1994. Mr. Schlyer will assist Mr. McLain with the loading of the proofing of
the integrity of the billing history.
C. PROJECT TEAM'S ROLE MATRIX
The following table illustrates which members of the engagement team will address the issues
required in this engagement. It should be noted that Jerry McKenzie will be the principal in
charge, and will be responsible for the overall quality and timeliness of this engagement, along
with Bob McLain, who will be the day -to -day project manager. Complete resumes of the team
members can be found in Appendix C.
SECTION H: PROJECT TEAM PROFILE Page 18
Robert
James Bret
McLain,
Brown, Schlyer,
Task
Description
Project
Project Project
Manager
Consultant Consultant
1:
Conduct City staff meeting # 1 to kickoff engagement
X
X
2:
Collect data
X
X
3:
Assess the financial condition of the utility fund
X
4:
Proof the integrity of the consumption history
X
5:
Identify "normal" consumption year
X
6:
Review, analyze, & evaluate non -rate fees
X
X
7:
Review, analyze, & evaluate adequacy of customer deposits
X
8:
Prepare memo # 1 on non -rate fees & deposits
X
9.
Conduct City staff meeting # 2 to review memo report # 1 on
X
non -rate fees and deposits
10:
Revise memo report # 1, if necessary
X
11:
Load operating and maintenance expenditures and revenues
X
into the rate model
12:
Load debt amortization schedules into the rate model
X
13:
Incorporate capital projects and their 'related funding into the
X
revenue requirements over the planning period
14:
Allocate any shared costs between water and wastewater
X
15:
Project revenues required over the planning period
X
16:
Prepare memo report # 2 on revenue requirements
X
17:
Conduct City staff meeting # 3 to review memo report # 2 on
X
revenue requirements
18:
Revise memo report # 2, if necessary
X
• 19:
20:
Design rate alternatives, including reuse rates
Determine impact
X
X
of each rate alternative on customers.
X
X
SECTION H: PROJECT TEAM PROFILE Page 18
C
i
s
Task Description
21: Prepare memo report # 3 on customer impact of rate design
alternatives
22: Conduct City staff meeting # 4 to review rate alternative report
23: Revise rate alternatives, if necessary
24: Prepare draft of final report and presentation
25: Conduct City staff meeting # 5 to review draft of final report
26: Revise report, if necessary & deliver copies to City
27. Present findings to City Council
28: Finalize the customization of the rate model
29: Install rate model & conduct training sessions
D. REFERENCES
MAXIMUS S£R 1'£ 711£ YEOPLG `
Robert lames Bret
McLain, Brown, Schlyer,
Project Project Project
Manager Consultant Consultant
X
X
X
X
X
X
X
X
X
Following are the cost of service and rate design engagements performed by Bob McLain and the
Government Utility Rate Group within the last 3 years.
City/Contact Person
Address/Phone/Fax/
Years
E -Mail
Allen, TX
305 Century Parkway, 75013
1984
John Baumgartner, P.E.
(972) 727 -0178,
1989
City Engineer
(972) 727-0165 (Fax)
2001
ibaum artner a ci.alien.tx.us
2002
Carrollton, TX
1945 E. Jackson Rd., 75006
1986
Robert Scott,
(972) 466 -3103
1999
Asst. City Manager
(972) 466 -3535 (fax)
bob.scottacilZofcarrollton.com
Commerce, TX
2621 Sterling Hart Dr. 75248
1999
Roger McKinney
(903) 886 -7058
Former City Manager
Cmckinne 49 nrqyAhoo.com
Flower Mound, TX
2121 Cross Timbers Rd. 75028
1998
Harland Jefferson
(972) 874 -6020
1999
Deputy Town Manager
(972) 874 -6460 (fax)
2001
I- Iarlan.Jefferson r flower- mound.com
2002
Hollywood, Florida
3441 Hollywood Blvd., 3`a. Floor 33022
1995
Whit Van Cott
(954) 967 -4455
1996
Director of Utilities
(954) 967 -4450 (fax)
1997
Annual large user rates
wvancottpbollywoodfl.org
1998
1999
2000
2001
2002
Hillsboro, TX
214 E. Elm St. 76645
2000
Kevin Carruth
(254) 582 -3271
City Manager
(254) 582 -0112 (fax)
cmhillsboro r .htcom .net
SECTION II: PROJECT TEAM PROFILE
Page 19
10
•
MAXIMUS
City/Contact Person
Address/Phone/Fax/
Years
E -Mail
Iowa Park, TX
103 N. Wall St. 76367
2002
Mike Price
(940) 592 -2131
City Manager
(940) 592 -4793 (fax)
m rice n,iowa ark.com
Keller, TX
1100 Bear Creek Parkway, 76244
1998
Johnny Phifer
(817) 743 -4025
1999
Director of Finance
(817) 743 -4191 (fax)
2001
i2liifer@.citvofk-eller.com
2002
McKinney, TX
222 N. Tennessee 75069
1999,
Jennifer Fung
(972) 547 -7531
2000
Director of Finance
(972) 547 -9738 (Fax)
fun a.mckinne texas.or
Plano, Texas
P.O. Box 860358 75086
1997
Karen Rhodes
972- 941 -7121
1998
Director of Budget
972 -941 -7439 (Fax)
1999
karenr(@Rwmail.r)lano.gov
Princeton, TX
306 N. Front St. 75407
2002
Steve Gorarn
(972) 734 -2416
2003
City Administrator
(972) 734 -6347 (fax)
citym-gr r flash.net
Red Oak, TX
F.O. Box 393 75154
1990
Ken Pfeifer
(972) 617 -3638
1991
City Administrator
(972) 576 -0993 (fax)
2001
ken. feifer r redoak.tx.or
2002
Rockwall, Texas
205 W. Rusk 75087
2000
Julie Couch
(972) 771 -7700
2001
City Manager
(972) 771 -7728 (Fax)
'couch o ci.rockwall.tx.us
Rockport, TX
P.O. Box 1059 78381 -1059
1999
Billy Dick
(361) 729 -2213
2001
Director of Public Works
(361) 790 -5966 (fax)
2002
citsvcab .ci ofrock ort.com
Rosenberg, TX
2110 Fourth St. 77471
1995
Lynda Eiche
(832) 595 -3369
1998
Director of Finance
(832) 595 -3333 (fax)
2001
lyndae n,rosenbere.tx.us
2002
Sachse, TX
5560 Hwy 78 75048
2000
Alan Dickerson
(972) 495 -1212
2001
Director of Finance
(972) 495 -9536 (fax)
adickerson o.cityofsachse.com
San Benito, TX
485 N. Sam Houston 78586
2001
Victor Trevino
(956) 399 -3800
2002
City Manager
(956) 399 -3805 (fax)
vtrevino san- benito.tx.us
Santa Rosa, TX
413 Santa Cruz 78593
2001
Javier Mendez
(956) 636 -1113
2002
City Manager
(956) 636 -2044 (fax)
sewd a,Qte.net
SECTION II: PROJECT TEAM PROFILE
Page 20
4D
•
MAXIMUS
City/Contact Person
Address /Phone /Fax/
Years
E -Mail
Terrell, TX
201 East Nash Street 75160
2000
Stan Ballard
(972) 551 -6607
2001
City Engineer
(972) 551 -6682 (fax)
sballard n,cit ofterrell.or
The Colony, TX
6800 Main St. 75056
1999
Tony Johnston
(972) 625 -1756
Asst. City Manager
(972) 624 -2298 (fax)
t'ohnston Qcki. the -colon .tX.LIS
E. COMPREHENSIVE PROJECT LISTING
(Next two pages)
The tables that follow on the next two pages provide the reader of a more extensive listing of rate
study clients that dates back into the 1980s.
SECTION II: PROJECT TEAM PROFILE
Page 21
MAXIMUS
HELPING COVERAW ENT SERVE THE PEOPLE"
Lft
I
E. PRIOR UTILITY EXPERIENCE
Client
Note
Population (x
1,000 )
Year
Water /Sewer
Rates
Solid Gas & Storm
Waste Electrical Water Regional
Strategic PAR
Planning Installation
Addison, TX
9
1988
X
X X
Albany, GA
78
1997 -9
X.
X
Allen, TX
2)
1 23
1986 -8
X
X X
Alvin, TX
20
1992 -3
X
x
Bartlett, TX
20
1987
X
X
Bartonville WSC, TX
2)
12
1990 -6
X
X X
Boy County, FL
2)
127
1991 -3,5,7
X
X X
X
Boynton Beach, FL
(3
40
1990
X
X
Burleson, TX
16
1991
X
X X
Carrollton, TX
120
1988 -99
X
X
Chicago Water Partners, IL
5,500
1998 -9
X
X X
oconut Creek, FL
30
1995
X
ollege Station, TX
q
52
1993,01
X
X
X X
olony, TX
25
1998
X
X X
ommerce, TX
t0
1994 -8
X
X X
oppell, TX
20
1984
X
X
Corpus Christi, TX
250
2001
X
X X
X X
Corinth, TX
10
1996 -00
X
X
Denton, TX
85
1991
X
X X
Desoto, TX
30
7995 -8
X
X X
District of Columbia
Farmers Branch, TX
600
24
1998 -00
1996
X
X
X X
X X
X X
X
Fayetteville, AR
40
1996 -01
X
X
X X
Flower Mound, TX
16
1997 -9
X
X X
Forest Hills, TX
12
1996
X
G.F.O.A. / EPA
-
1997
X X
Gainesville, TX
(2)
15
1984 -00
X
X X
arner, NC
15
1997
X
X
ranbuly, TX
4
1984 -99
X
X X
rapevine, TX
30
1998
X
x
reenville, TX
Hemando County, FL
23
101
1995
1990
X
X
High. City, TX
(2,3)
9
1989 -90
X
x
Hillsboro, TX
25
2000
X
Hollywood, FL
(2,6)
140
1994 -01
X
X X
X X
Keller, TX
La Porle, TX
2
2
15
28
1996 -00
1985,88
X
X
X
X' X
X X
Lake City, FL
(1
10
1993
X
X
X X
Lancaster, SC
10
1993
X
X X
Lancaster, TX
25
1997
X
os Angeles, CA
(3)
3,200
1993
X
X x
J
SECTION II: PROJECT TEAM PROFILE Page 22
Mill—
MAXIMUS
11 £LPING GU i,ERivmE vrS£R t'£ THE PEOPLE`
E. PRIOR UTILITY EXPERIENCE
Client
Note
Population (x
1,000)
Year
Water /Sewer
Rates
Solid
Waste
Gas &
Electrical
Storm
Water
Regional
Strategic
Planning
PAR
Installation
Me Allen,'TX
(2,3)—
84
1994 -8
X
X
X
Mc Kinney, TX
24
1985 -99
X
X
X
edStar, Fort Worth, TX
2
470
1992
X
X
N. Richland Hills, TX
2
46
1988
X
X
X
Nacogdoches, TX
(4)
31
1995,6
X
X
X
X
Newark, N1
320
1992 -3
X
X
X
Norfolk, VA
7
261
19924
X
X
X
X
North American Development Bank
30
2001
X
X
X
I'alm Beach County, FL
(3 )
864
1984 -8
X
X
X
Pampa, TX
15
1995
X
X
X
X
Panama City, FL
34
19933,00
X
X
Paris, TX
25
1997 -8
X
X
X
Pasco County, FL
(3,5,6 )
281
1994 -01
X
X
X ,
Plano, TX
130
1994 -9
X
X
X
X
Red Oak, TX
(2)
3
1991 -2
X
X
Richardson, TX
2
75
1994 -7
X
X
X
X
Richland Hills, TX
8
1989
X
X
Rockport, TX
5
1998
X
X
Rockwall, TX
25
2000
X
X
X
Rosenburg, TX
25
1995 -9
X
Roysc City, TX
(2
2
1990 -3
X
achse, TX
20
2000
X
I'ctrcll, TX
5
1999
X
X
Tilton, GA
15
1997 -8
X
X
frumbell, CT
g
32
1992 -8
X
Venice, FL
16
1992
X
X
Waco, TX
105
1997 -01
X
X
X
Wake Forest, NC
10.
1997
X
X
Watauga, TX
(g
21
1996
celand, MI
(5
30
1995,00
10
Notc (1) - Developed system development fees.
Note (2) - Also updated study in succeeding years at least once.
Note (3) - Developed impact fees also.
Note (4) - Developed stormwater rates.
Note (5) - Litigation support.
Note (6) - System Acquisition Analysis.
Note (7) - Cost Accounting System Development.
Note 11), Developed RFP
SECTION II: PROJECT TEAM PROFILE Page 23
SECTION IIII:
CORPORATE PROFILE
lie
MAXIMUS
HELPING GOVERNAIENT SER VE THE PEOPLE"
MAXIMUS HELPING GOVERNAIENT SERVE THE PEOPLE
SECTION III: CORPORATE PROFILE
A. OVERVIEW
MAXIMUS was formed over twenty -six years ago to provide direct services to state and local
goverrunents. Over time, we have grown to be the largest provider of consulting and direct
services exclusively to non - defense govenunental agencies in the United States. Today, we are a
publicly traded corporation on the New York Stock Exchange (MMS) and highly regarded as an
industry and financial leader. We provide services to our clients through more than 5,000 client
service professionals in local and regional offices located in 34 different States, including our
southeast regional office located in Dallas, and service offices in San Antonio and Houston.
B. CORPORATE OFFICES
The Corporate Office is located at 11419 Sunset Hills Road, Reston, VA 20190 -5207.
C. THE COST SERVICES DIVISION
I The Cost Services Division is part of the Management Services Division of MAXIMUS,
formerly David M. Griffith & Associates, Ltd. This practice was established in 1976 to provide
experienced and high quality analytical services to public sector agencies. The founders of the
I fine established it based on the philosophy that senior and, experienced staff members would be
involved in all phases of our management and financial studies. The Management Services
Division has conducted over 12,000 projects for over 3,200 local government client agencies.
10
The Government Utility Rate Practice is based in our Dallas, Texas office. It is a component of
our overall financial services to clients. This practice serves our clients in helping them to
establish equitable utility rates. We have assisted several hundred governmental clients over our
many years of service to local government.
D. THE GOVERNMENT UTILITY RATE PRACTICE
MAXIMUS' Government Utility Practice is headquartered in Dallas, Texas. The Dallas office
directs and coordinates the work of the Utility Consultants. The Utility Practice is currently
staffed by full utility and management professionals of 8 persons throughout the country.
Staff Level j
Number of I
Personnel j
Practice Leader ! X
Consultant Managers _4 - - - --
Senior Consultants /Cost Analysts �— 2
Administrative Staff
1
SECTION Ili: CORPORATE PROFILE
Page 24
MAXIMUS
HELPING GOVERNAI£NT SERV£ 711£ PEOPLE`
f• MAXIMUS is a leading provider of management consulting services to government utilities and
state and local governments in the United States. In the past seven years, MFS has conducted
` over 250 rate/management studies of all types across the United States and more than 100 for
1
government utilities. Our professional services for water, sewer, storm water, gas, electric and
solid waste utilities include:
I,*
• Rate Analysis, both wholesale and retail;
• Financial Planning and Modeling;
• Acquisition Studies;
• Asset Inventory and Depreciation Services;
• Managed Competition and Privatization;
• Fixed Asset Analysis;
• Litigation Support;
• Organizational Studies and Operational Reviews;
• Regulatory Analysis;
• Cost Allocation Plans and Indirect Cost Analysis;
• Strategic Planning and,
• Policy and Procedure Review.
The MAXIMUS Goverrment Utility Rate Practice provides a comprehensive set of services for
Government Utilities. We are staffed with leading Utility Professionals. A brief description of
our major services follows.
• Rate Studies — Our approach is based on the premise that there are two separate issues
involved in this area (i.e., cost of services and rate design). It is also based on national
guides and regulatory requirements which are customized to meet the client's specific
objectives and needs. We normally suggest a multi -year analysis where expenses drive
revenues, and the cost of the service is tied to operating and capital budgets and must take
into account properly allocated costs. All assumptions are documented and community
participation is recommended.
• Financial Planning and Modeling — Long range capital improvement programs require that
expenditures be planned in advance in order to assure smoothness in rates, as well as to
optimize financing arrangements. We utilize a multi -year financial Planning and Rate model
(PAR) to develop and answer "what if' questions and formulate a sound basis for short and
long -range plans.
• Acquisition and Fixed Asset Studies — These services generally involve a determination of
the financial and operational feasibility of combining another utility or district with a
City /County utility. A key component of these studies is the valuation of the utilities fixed
assets, and projections of the financial impact over several years.
SECTION III: CORPORATE PROFILE Page 25
MAXIMUS
!HELPING COVERNAIENT SER I'E TT I E PEOPLE"
• Asset Inventory, Appraisal and Depreciation Services — these studies generally include a
comprehensive evaluation of existing policies and procedures, system operations,
management and staffing of an entity's existing fixed asset inventory management program.
Often done in conjunction with these services is the determination of replacement costs to
assist with property insurance placement and proof of loss documentation. Our proprietary
FACTS /plus software is a Visual FoxPro Windows based, event- driven program, which
enables clients to maintain their property cost accounting records internally. FACTS /plus
incorporates the fixed asset management tools in an easy to use software application.
' •
Managed Competition and Privatization Studies —Our services include developing and
' managing a competitive bidding process. These services normally involve the definition of
the services to be provided, quality standards and a detailed Request for Proposal. Technical
assistance is also provided in evaluating responses and contract negotiations.
MImpact Fee Studies — Impact Fees, also known as System Development Charges; are used to
allocate the costs of increasing capacity among the users of the new capacity. Our approach
considers both the "incremental method ", used primarily for new construction, and the " buy -
in method ", used when there is existing capacity for utilities. We have also developed impact
fees for other services such as libraries, parks, roads and fire.
• Financial Feasibility Studies — We can perform comprehensive financial feasibility studies
including rate requirements, projections of financial statements and coverage ratios, for debt
I issues requiring feasibility studies. These studies are generally a component of the bond
offering.
• Storm Water Utility Studies — There are significant differences between County and City
utilities and MFS has experience with both. Our approach is to provide assistance with all
aspects of establishing a storm water utility (i.e., feasibility analysis, program /fee design and
implementation).
+ Regulatory Analysis — Many Federal and State laws /regulations impact local utilities capital
and operations. MFS can determine the potential staffing and cost impact of complying with
new regulations (e.g. backflow /cross connection) as well as performing viability analysis of
the utility under de- regulation (e.g. electric and gas).
• Expert Witness and Litigation Support —We have supported its clients regarding legal
matters in several states, working closely with the clients' attorneys and providing detailed
supporting analysis and testimony. These services have resulted in significant costs
recoveries /savings.
10
ISECTION III: CORPORATE PROFILE Page 26
HELPING GOV MAXIMUS E SrR1'
Comprehensive Management and Operational Review — Our management studies
encompass all significant functions and organizational activities. Knowledge of how each
I function is performed and how it interacts or is interrelated is critical if there is to be a valid
assessment of management techniques. Our studies utilize "benclirnarks" and are generally
segmented into the following functions or elements:
V
— General Management & Organization — Finance & Accounting
— Engineering & Construction — Public Relations
-- Operations — Personnel & Labor Relations
— Maintenance — Administrative Senlices
--- Procurement & Materials Management
Establishing Utility Authorities —Our approach to evaluating the advantages and disadvantages
of consolidating or separating utility normally involves evaluation of capital and debt programs,
impacts on O &M costs and rates and asset valuations. An engineering cost analysis of
interconnection and upgrade is also needed.
SECTION III: CORPORATE PROFILE Page 27
SECTION IV:
ENGAGEMENT FEES
19
LJ
MAXIMUS
t
A
1
1
1
i
A
A
w
4
w
MAXIMUS
!/FLYING GOVFRNAiFNTSFR I �F TIiEY�'OPL E°
SECTION IV: ENGAGEMENT FEES
PROPOSED BILLING SCHEDULE
We will perform the tasks outlined in the work plan for a not -to- exceed fee of $37,500. The not -
to- exceed fee includes $3,000 for travel and associated expenses. We will bill the City on a
monthly basis, as follows:
Month
Month 1 (Feb)
Month 2 (Mar)
Month 3 (Apr)
Month 4 (May)
SECTION IV: ENGAGEMENT FEES
TOTAL
Amount
$10,000
15,000
7,500
5,000
$37,500
Page 28
MAXIMUS
!HELPING GO VERNAIENTSERVE THE PEOPLE`
I*
APPENDIX A:
DATA COLLECTION NEEDS
I*
v
I
i
F0
MAXIMU S'
PLE''
APPENDIX A:
DATA COLLECTION NEEDS
Phone
We'd like to have the phone number, fax number, and e -mail
Directory
address for all key City contacts we'll be working with on this
engagement.
Organization
We'd like to review this in order to enhance our understanding
Chart of City
of the organization of the City. Note - sometimes we can find
& Utilities
these published as part of the published budget.
C.A.F.R.'s
For last two -three fiscal years - required to evaluate the existing
and recent financial condition of utilities
Budgets by line
For FY 2003, at the line item level - we plan on identifying the
item
cost of service for each utility, based on the most recently'
approved budget, at the line item level.
Actual
For FY 2002, at the line item level. We propose to show in the
Revenues &
financial plan the audited actual revenues and expenditures for
Expenditures
FY 2002, the revised revenue and expenditures for FY 2003,
by line item
and the preliminary budget for FY 2004. The actual and
budgeted revenues and expenditures for these three years will
become the basis for forecasting the revenues and expenditures
for the plaruiing period.
Capital
Water and wastewater
Improvement
Plans
Bond
We will need copies of these ordinances for all outstanding debt
Ordinance(s)
that will is supported by the rates. As part of our due diligence,
For All Debt
we will need to independently understand and verify any bond
That is
covenants, so that we can properly incorporate these adequacy
Supported by
tests into the rate model.
Water /Sewer
Rates
APPENDIX A: DATA COLLECTION NEEDS
Page 29
;0
1*
MAXIMUS
IIELPINGGOVERNAIENTSERJ E'TIIEPEOPLE'
Amortization
We will need copies of these schedules for all outstanding debt
Schedules For
that is supported by the rates. These schedules will need to
All Debt Issues
show the principal and interest payments and the dates they are
Supported by
to be paid.
Water /Sewer
customers will be impacted negatively by each rate alternative
Rates
and how many customer's will be impacted positively by each
Monthly
We will need to review and evaluate the amount of water
Summary of
produced by month for the last 3 -S years in order to develop a
Water
basis for forecasting water consumption billed for the planning
Treated for the
period. We will also use this information to develop an estimate
Last 3- 5 years
of the percent of water lost and unaccounted for.
Population
We'd like to review any information the City may have related
growth
to growth forecasts.
forecasts for the
reflects: residential, multi-family, commercial, industrial.
tannin period
We will need to know the meter size of the account the record
We will require a copy of the City's billing history file in ASCII format, delimited by commas in
electronic format. The following table illustrates what information we'd like to have in each
record for the rate analysis.
Field Name
Reason Needed
Account Number
As part of the process of determining the impact of each rate
alternative, we will calculate each account's water and
wastewater monthly bill and develop profiles of how many
customers will be impacted negatively by each rate alternative
and how many customer's will be impacted positively by each
rate alternative. In order to do this, we will need to know the
account number.
Customer Area
We will need to know the geographical location of the account
the record reflects: inside or outside
Customer Type
We will need to know the type of account the record reflects:
water or irrigation.
Customer Class
We will to know the class of the account that the record
reflects: residential, multi-family, commercial, industrial.
Meter Size
We will need to know the meter size of the account the record
reflects.
APPENDIX A: DATA COLLECTION NEEDS
Page 30
10
10
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Field Name
Reason Needed
Year Month
We will need to know the year and the month each record
reflects, in "YYYY -MM"
Units
We will need to know how many units this record reflects.
Consumption
We will need to know the consumption billed for the account
for that month. Furthermore, we will need to know if we are
getting this information in thousands of gallons, hundreds of
,gallons, or actual gallons .
A detailed memorandum will be forwarded by Bob McLain to the City's Utility Billing
Coordinator at the onset of the project explaining the exact information required from the utility
billing department and required formats.
IAPPENDIX A: DATA COLLECTION NEEDS Page 31
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APPENDIX B:
HIGHLIGHTS OF THE PLANNING & RATE MODEL (PAR)
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APPENDIX B:
PAR MODEL HIGHLIGHTS
1. What is PAR?
MAXIMU5
NFLYINC C, O �'ERA'AIF_T'T SERI E 771 G PGOPLE"
PAR is a planning and rate model designed by the Government Utility Rate Group of
MAXIMUS, INC. PAR gives the user the power to project and allocate costs, design
rates, and most importantly, determine the impact on the customer base of the different
rate designs. The model is currently run under Windows 95, 98, Windows Millennium,
Windows 2000, and Windows XL using Excel 7.0 or later version.
2. What is the Background of PAR?
9 Supported by almost twenty years of development and use in the Government
Utility Rate Group of MAXIMUS, INC.;
PAR has evolved with each upgrade of Excel to take advantage of the capabilities
of each upgrade;
9 Developed in a format that will be familiar with those municipal and County
utility staff members used to working with budgets and financial plans.
3. What are PAR's Capabilities?
PAR gives the user the power to perform the following functions:
Forecast each utility's demand by meter size within each customer class;
➢ Forecast operating and maintenance costs, including a level of support as detailed as
the user wishes it to be, including staffing and salary tables, if required.
➢ PAR gives the user the ability to vary the type, size, timing, and amortization of
planned debt over the multi -year planning period;
➢ PAR gives the user the ability to incorporate the various revenue adequacy tests into
the model, based on the utility's bond covenants and/or reserve policies, allowing the
user to perform "what -if' sensitivity analysis, based on the requirements of these
adequacy tests;
Identify the revenue requirements of each utility for each year of the planning period
using either the "cash -needs approach ", the "utility approach ", or a combination of
both;
9 Allocate costs into the categories of "shared costs" and "retail- only" costs, if required
by large user agreements;
[• r Allocate costs into the customer classes using the "base -extra capacity method ", or a
more simplified approach;
APPENDIX B: HIGHLIGHTS OF THE PAR MODEL Page 32
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Gives the user the capability to design conservation rates based on the unique
characteristics of their system.
4. What are other features of PAR that are important to know?
9 PAR is adaptable to each utility's unique characteristics;
➢ PAR uses AWWA's Base -Extra Capacity cost allocation method, or a more
simplified method tailored to the unique requirements desired by each utility;
➢ PAR uses EPA's User Service Charge method to determine rates, or a more
simplified method tailored to the unique requirements desired by each utility;
PAR is organized in a modular format.
5. What are PAR's Modules?
This Excel -based software package is organized into four major modules:
➢ Multi year revenue requirements module (MYFP). The purpose of this module is to
identify the revenues required from each utility for each year of the planning period.
This module is organized into the following components:
• Projection of each utility's units of service, such as the number of water meters,
5/8 inch water meter equivalents, annual water production, and annual water
consumption billed.
9 Cost of service allocation module. The purpose of this module is to first, distribute
any shared costs between each utility.
• Second, each utility's costs are allocated into cost - causal functional categories
such as, for example - water:
• Customer costs;
• Raw water costs (if applicable);
• Water treatment and production costs (if applicable);
• Water transmission costs;
• Water distribution costs.
• Another example would be wastewater costs, such as:
• Customer costs;
• Wastewater collection system;
• Wastewater treatment flow costs;
• Wastewater treatment strength costs, such as TSS, BOD, etc.
Note - the model has the capability of segregating retail -only costs versus
shared costs, if required for wholesale or large water and wastewater users.
APPENDIX B: HIGHLIGHTS OF THE PAR MODEL
Page 33
MAXIMUALE `
9 Rate design module. The purpose of this module is to design both the monthly
minimum bill and the rate per thousand gallons for each customer class for each
utility.
• The monthly mininuarn bill rate design options that can be calculated for each
utility are:
Uniform monthly base bill, regardless of customer class;
Uniform monthly base bill that varies by customer class;
Monthly base bill that varies by meter size.
• The volume rate design options that can be calculated for the water utility are:
Uniform rate per thousand gallons, regardless of customer class;
Uniform rate per thousand gallons, that recovers cost from each customer class
based on the peak -to- average factors for each customer class - the result will be
different volume rates for each customer class;
Seasonal or year -round conservation rates (inclining -block rates).
pThe volume rate design options that can be calculated for the wastewater utility
are:
Uniform rate per thousand gallons, regardless of customer class;
Uniform rate per thousand gallons, that recovers cost from each customer class
based on the average strength of effluent for each customer class - the result will
be different volume rates for each customer class;
L?"
Bill comparison nodule. The purpose of the bill comparison module is to provide to
the user as clear a picture as possible of the customer impact that different rate design
options will have.
APPENDIX B: HIGHLIGHTS OF THE PAR MODEL Page 34
APPENDIX C:
RESUMES
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MAXIMUS HELPINGCOVERhAIENTSERVE• 77/EPEOPLE
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MAXIMUS
IIELPLYG GOVERNMENT SERVE THE PEOPLE"
APPENDIX C: RESUMES
A. Resume of Jerry McKenzie
Vice President, Project Director
BACKGROUND Mr. McKenzie has an extensive background in cost accounting concepts and
practical applications. Mr. McKenzie is a Vice President with MAXIMS,
INC. Since 1986, he has been responsible for managing several successful
engagements in both the utility and governmental environments.
EXPERIENCE Utility - Mr. McKenzie -has been responsible for utility rate studies and
management audits, the development of administrative and general
capitalization rates, subsidiary cost allocation plans and overhead allocation
methods for jointly owned power plants. Heavily involved in assisting
utilities in dealing with restructuring, Jerry has authored two electric rate
unbundling manuals for the American Public Power Association (APPA).
These manuals serve as a guidepost for municipal utilities to utilize in
unbundling service costs as they prepare for retail wheeling in a competitive,
market -driven environment. He has also been involved in the design and
implementation of internal service billing algorithms for administrative
departments such as data processing, building service, fleet, stores handling,
and engineering. In addition, he has an extensive knowledge of the Federal
Energy Regulatory Commission's (FERC) statutes and regulations and
currently serves as the instructor for APPA's Public Utility Accounting
course.
Some of his clients include Georgia Power Company, Santee Cooper,
Arkansas Electric Cooperative Corporation, Boston Edison Company,
Oglethorpe Power Corporation, Central and South West Corporation, Old
Dominion Electric Cooperative, Madison Gas and Electric Company, the
Oklahoma Municipal Power Authority, South Carolina Electric & Gas,
Boston Gas Company, Entergy Services, City of Austin Electric Utility,
Reliant Energy, City Public Service (San Antonio), the American Public
Power Association, and well over forty members of the Kansas Municipal
Utilities/Kansas Municipal Energy Agency.
Nationally recognized as an expert in the area of overhead cost identification
and allocation, he has made presentations on utility cost allocation theory
and techniques to several professional organizations. These organizations
include the Edison Electric Institute, the Institute of Internal Auditors, the
American Public Power Association, the Electric Council of New England,
Utilities Training Conferences, Inc., and the Nuclear Nonoperating Owners'
Group.
APPENDIX C: RESUMES Page 35
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As stated earlier, Mr. McKenzie recently authored two unbundling manuals
now offered tlu•ough the American Public Power Association - one on
unbundling utility services, the other covering marginal costing of
generation. Mr. McKenzie has assisted several Municipal, Investor Owned,
Rural Electric Coops, as well as Federal, State and District Systems with
their costing needs.
Prior to joining MAXIMUS, Mr. McKenzie acquired over eight years of
public utility experience with a major midwestern electric utility. While
with that firm he obtained experience in utility ratemaking, accounting
systems design, financial and regulatory reporting, and operational auditing.
Governmental - Mr. McKenzie has been directly responsible for the
development and review of cost allocation plans created in accordance with
federal guidelines (i.e. OMB Circular A -87). These guidelines establish the
procedures necessary for govenunental entities to recover indirect costs
associated with grant funded programs. In this capacity, Mr. McKenzie has
dealt with several reviewing agencies on behalf of our clients.
In addition, he has developed "Full Cost" plans which enable clients to bill
the full cost of support services to enterprise funds, special revenue
accounts, etc. This process involves an in -depth analysis of general fund
support provided to enterprise funded activities such as Utilities and Golf
Course operations.
Another related area in which Mr. McKenzie has extensive experience is in
the costing of internal services. He has developed several billing algorithms
for fleet maintenance programs, data processing funds and miscellaneous
other internal service type charge back systems.
Finally, he has been directly responsible for the review and analysis of
alternative revenue sources for governmental clients. This activity primarily
involves the development and implementation of User Fee Cost Recovery
Programs, as well as the identification of "new" potential revenue areas for
the governmental units.
Mr. McKenzie's governmental experience includes completion of cost
allocation projects for entities at both the state and local level. He has
managed statewide engagements for the States of Oklahoma, Kansas,
Louisiana and Arkansas. He has completed cost plans and user fee cost
analysis projects for several state agencies including the Oklahoma Office of
State Finance, the Printing, Motor Pool, and Building Management
Divisions of the Oklahoma Department of Central Services, the Kansas
State Historical Society, Kansas Corporation Commission, Washington
State Patrol, Kansas Fire Marshal, Kansas Highway Patrol, Kansas
Department of Health and Environment, the Kansas Board of Agriculture,
APPENDIX C: RESUMES Page 36
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HELPING GOVERNAIENT SERVE 171E PEOPLE''
the Louisiana Department of Natural Resources, the Louisiana Department
of Public Safety and Corrections, the Louisiana Department of Wildlife and
Fisheries and the Louisiana Division of Administration.
Mr. McKenzie has also been responsible for completing indirect cost
allocation plans and other cost recovery projects for local government
clients including the City of Tulsa, Oklahoma and the Cities of Kansas City,
Hutchinson, Topeka, Wichita and Leavenworth, Kansas, as well as
Sedgwick, Shawnee, Wyandotte, Butler and Johnson Counties in Kansas.
He has also performed these services for the Cities of New Orleans, Lake
Charles, Shreveport, Lafayette, Baton Rouge and Alexandria in Louisiana.
Mr. McKenzie has served as the Project Director for Caddo, Rapides, St.
Charles, Iberia, Jefferson and Orleans Parishes in Louisiana, as well as
Pulaski County, Arkansas.
All of these studies resulted in the identification of significant revenue
enhancement possibilities and a couple of the user fee projects resulted in
the client implementing fee increases, or adopting new fees identified, which
totaled over two million dollars annually.
EDUCATION Mr. McKenzie graduated with Honors from Wichita State University in
Kansas with a Bachelor of Business Administration in Accounting in 1980.
He has been involved with the local chapter of the Institute of Internal
Auditors and has taught cost allocation and software design at the local and
national level since 1986.
APPENDIX C: RESUMES Page 37
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B. Resume of Robert McLain
Senior Manager, Practice Leader
Mr. McLain is the Practice Leader and Senior Project Manager in the Government Utility
Consulting Group, for MAXIMUS, Inc. Mr. McLain has almost twenty years of goveruuental
rate experience. Mr. McLain has specialized in government utility financing and rate setting
since 1982. Since then, he has performed over 100 utility cost of service and rate design studies.
The majority of the other assigrunents included multidisciplinary skills such as planning,
budgeting, economic analysis, and cash management.
Furthermore, Mr. McLain has been the driving force in the development of our rate model. The
rate model has been enhanced many times (latest is in Excel 7.0 for Windows 95,98). His
experience prior to joining MAXIMUS includes serving as part of the team that was the
contractual Finance Director for two medium sized cities in North Texas.
Partial Sample of Ex erience
Services
Clients
Cost of Service /Rates
Chicago, IL, Hollywood, FL, Washington DC,
Plano, TX, Waco, TX, Carrollton, TX,
Richardson, TX, Newark, N7
Impact Fees /Growth Studies
Boynton Beach, FL, Plano, TX Flower Mound,
TX, Keller, TX, Granbu , TX.
Management Studies
Auburn, NY, Farmers Branch, TX, Edwards
Aquifer, TX
HIGHLIGHTS OF PROJECT EXPERIENCE:
Chicago, Illinois: Project manager of a water rate study for the City of Chicago and its
suburbs (approximate population of 7.5 million). Rates had not been changed in nine years
and the City's capital improvement program was almost $I billion. The study involved
evaluating several rate alternatives such as life -line and seasonal rates as well as including
ROI in the cost of service. Numerous financial scenarios were evaluated using MAXIMUS'
financial planning and rate model. The resultant rate model was installed after new rates
were adopted.
DC Utility Authority. Managed several projects related to a multi -year contract for the
newly formed DC Water and Sewer Authority. The projects included financial planning/
financing, rate setting, and performing an annual "true up" of large wastewater user charges.
Hollywood, Florida. Managed a water and sewer rate study. The study involved working
with citizen groups to develop rate objectives for the City and identification of financial
policies which required clarification. It also involved evaluation and restructuring
Hollywood's large user agreements and the development of an equitable "true up" process.
APPENDIX C: RESUMES Page 38
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IIELPING GOVERNAI ENT SERVE THE PEOPLE"
® The study resulted in a significant shift of costs by customer group and a significant increase
in the revenue requirement to achieve equitable "cost rates ". The study and rates were
approved unanimously by the City Council. Since then, Mr. McLain has implemented the
"true up" process five times.
•
Town of Trumbull, Connecticut. Served as the project manager related to a review of the
rate structure between the Town's sewer Commission and Bridgeport's WPCA. The review
required a complete evaluation of Bridgeport's rate methodology and cost allocation. It also
required an understanding of agreements between the cities and EPA. The Study resulted in
approximately 15% annual savings after three year's of litigation.
City of Plano, Texas. Performed a rate study in conjunction with an impact fee study. The
project involved determining the cost of serving the numerous customer classes, along with
designing and determining the impact of several alternative rate structures. A computer
model was developed and utilized to perform various "what -if' scenarios regarding the mix
of impact fee charges and water and sewer rates. The subsidies were so severe between the
customer classes that the consensus was to pursue phasing in equity between the classes over
a several -year period. Rate alternatives considered were flat, inverted, and a seasonal
summer surcharge. MAXIMUS subsequently assisted the City over a five -year period as
these subsidies were minimized.
Other Utility Clients. Mr. McLain has also developed cost -based solid waste rates for
several clients. Additional project descriptions are also available.
EDUCATION:
B.B.A. - University of North Texas, 1983, with a heavy emphasis in Accounting and Finance.
PROFESSIONAL AFFILIATIONS:
American Water Works Association
Water Environment Federation
Government Finance Officers of North America
APPENDIX C: RESUMES
Page 39
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C. Resume of Jim Brown
Manager, Project Consultant
BACKGROUND Mr. Brown is a manager in the Dallas office of MAXIMUS. His
experience has centered on the development, negotiation, and
application of cost accounting and allocation principles during his
tenure with MAXIMUS, Inc.
His responsibilities include the preparation and negotiation of activity
based indirect cost allocation plans, indirect cost rate proposals, cost
of service studies, management studies, fleet management studies, and
the support and maintenance of the MAXIM -US activity based cost
allocation software.
Mr. Brown has twenty years of accounting experience, of which more
than nine years have been directly associated with federal, state, and
local governmental entities. Upon graduation, Mr. Brown worked for
a regional CPA finn maintaining financial records, performing both
private and public sector audits, and preparing personal and corporate
tax returns for four years. He then assumed the financial duties for a
multi -state pet store chain. He has worked for a leading software firm
in the development of accounting software providing a strong
background in accounting system development and implementation.
Mr. Brown has played an instrumental part in developing accounting
systems and internal controls for a financial institution that had been
placed under federal conservatorship. That financial institution was
the first one of its kind to successfully be removed from
conservatorship.
He was, also, part of a team that instituted internal control procedures
for a firn with $200,000,000 annual sales and converted the existing
accounting system on an IBM 36 to a new system on an IBM 38
resulting in a centralized reporting system from satellite locations and
efficient monitoring and utilization of cash flow.
EXPERIENCE Mr. Brown has been involved in the preparation and negotiation of
State Goverment indirect cost allocation plans and indirect cost rate proposals utilizing
Level activity based costing principles for various state governments and
agencies. His statewide cost allocation plan experience has included
the preparation of plans for Louisiana, New Mexico, and Oklahoma.
• These plans have been successfully negotiated with the US
Department of Health and Human Services.
APPENDIX C: RESUMES Page 40
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HELPING GOVERNAIENTSERI'ETILE PEOPLE
He has also prepared numerous state agency indirect cost allocation
plans utilizing an activity based costing approach and indirect cost rate
proposals. These include the Veterans Administration, Department of
Education, Department of Agriculture, and the Department of Water
Resources for the State of Oklahoma; the Department of Commerce,
General Land Office, and the Department of Mental Health and
Mental Retardation of the State of Texas, Texas Commission for the
Blind, Texas Natural Resource and Conservation Commission, and the
Texas Commission of Alcohol and Drug Abuse. These proposals
have been successfully negotiated with various federal cognizant
agencies including the US Department of Health and Human Services,
HCFA, the US Department of Education, Environmental Protection
Agency, and the US Department of Labor.
Mr. Brown has prepared a variety of activity based cost of services
studies for several state agencies which identify the actual costs of
providing services by fully identifying direct and indirect program
costs by activity. Cost of service studies on which he has participated
include the Alaska Division of Insurance, the Texas Department of
Health and the Comptroller for the State of Texas.
EXPERIENCE Mr. Brown has a varied background in the local government area. He
Local Government has prepared and negotiated indirect cost allocation plans and
Level proposals, fleet management studies, and management studies for
various cities, counties, and parishes.
His activity based cost allocation plan clients have included the
following: Texas cities of Austin, Fort Worth, and San Marcos;
Louisiana cities of Baton Rouge and-Shreveport; Tulsa, Oklahoma;
and Los Alamos, New Mexico Electric Utility Section. County clients
have included: Pulaski County, Arkansas; Beauregard, Jefferson, and
St. Charles Parishes of Louisiana; Cameron, San Patricio, and Tarrant
Counties of Texas.
Mr. Brown has prepared a variety of activity based cost of services
studies for cities and counties. These studies detennined the full cost
of providing services by determining and allocating direct and indirect
costs by activity. These studies have included service such as
planning, engineering, health, fire, police, jail housing, parks and
recreation, building inspections, and tax collection.
His efforts were instrumental in assisting these jurisdictions in
establishing a comprehensive user fee policy, and the detailed
• accounting necessary to identify the actual costs of providing a
specific service by activity. Among others, studies have been
APPENDIX C: RESUMES Page 41
MAXIMUS
HELPING
prepared for the City of San Marcos, Texas and the Texas counties of
• El Paso, Cameron, San Patricio and Tarrant.
•
Mr. Brown has participated in engagements that include the San
Antonio, Texas Fleet Management Study, the San Angelo, Texas
Management Study, the Houston Light and Power Indirect Cost
Allocation Plan for the City Participants, and the Boston Edison
Indirect Cost Allocation Plan for the power line relocation.
His responsibilities also include the maintenance and support of the
NGCS2 activity based cost allocation software. Mr. Brown was the
chairman for the software development committee that was
instrumental in the development of the existing software. He provides
training to both internal and external software users.
EDUCATION Mr. Brown graduated from New Mexico State University in Las
Cruces, New Mexico with a Bachelors of Accountancy. He is a
Certified Government Finance Manager as recognized by the
Association of Government Accountants. He participates in numerous
professional seminars and classes in government finance and
budgeting.
APPENDIX C: RESUMES Page 42
MAXIMUS
HELPING GO VERMIENTSERVE 7711E PEOPLE'
D. Resume of Bret Schyler
Manager, Project Consultant
BACKGROUND Bret Schlyer is a Manager in the Wichita, KS office of MAXIMUS. His
responsibilities include a wide -range of indirect cosi allocation projects and
analysis within Kansas, Oklahoma and Louisiana and with utilities nationally.
EXPERIENCE Since joining MAXIMUS, Mr. Schlyer has assisted in the preparation on
multiple indirect cost allocation studies for Boston Edison Company. These
studies include cost allocation for charges to subsidiary companies, A &G
capitalization, and A &G over head determination for charges to the State of
Massachusetts for a major relocation project.
Additional engagements Mr. Schlyer has participated in include the annual cost
study for the four joint owners of the South Texas Project nuclear power plant,
and the FERC account cost distribution study for the Rocky Mountain
hydroelectric plant.
Government - Mr. Schlyer has had primary responsibility for the preparation of
indirect cost allocation plans within the state of Kansas for the Kansas
Corporation Commission, Kansas Department of Health & Environment; the
cities of Wichita, Topeka and Kansas City (Unified Government); and the
counties of Sedgwick, Shawnee and Johnson. Additional work includes annual
cost of services studies for the Mental Health Department in Sedgwick County,
for the detention centers in Counties of Wyandotte, Shawnee, Sedgwick and
Saline; and assistance in the preparation of the Kansas State Wide Cost
Allocation Plan (SWCAP).
In Louisiana, Bret's responsibilities include the annual cost allocation projects
for the City of New Orleans, Jefferson Parish and St. Charles Parish. Additional
work has included cost allocation plans for the Department of Natural Resources
and the WIA 1 -Stop Centers in New Orleans, Hammond and Bastrop; and a cost
of service study for the Sheriff's Association. Mr. Schlyer also prepared a WIA
1 -Stop Center cost allocation guide for the State Department of Labor, and
provided state -wide training to 1 -Stop operators as part of an implementation
program.
In Oklahoma, Mr. Schlyer has also completed a cost allocation plan for the City
of Norman, and prepares an annual indirect cost allocation plan for the City of
Tulsa. Additional work in Oklahoma has included cost of service studies for the
Cities of Broken. Arrow and Tulsa, and assistance in the preparation of the
Oklahoma State Wide Cost Allocation Plan (SWCAP).
EDUCATION Mr. Schlyer graduated with Honors from the University of Kansas with a
• Bachelor of Science degree in Accounting in 1994.
APPENDIX C: RESUMES Page 43
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APPENDIX D:
REQUIRED CERTIFICATIONS
•
CITY OF BAYTOWN
• Purchasing (281) 420 -6524
P. O. BOX 424 Baytown, Texas 77522 -0424
—
!3 a
AMENDMENT #1
January 13, 2003
REQUEST FOR PROPOSAL FOR WATER AND
SEWER RATE STUDY FOR THE CITY OF BAYTOWN, TEXAS
RFP : 0311 -01
AMENDMENT #1
Please refer to the SCOPE OF WORK and GENERAL REQUIREMENTS, page 4 and 5, and
amend this proposal by removing any reference to storm water. For clarity this proposal does not
include stone water.
For information purposes this proposal should not exceed $100,000.00 in scope.
Please include and submit the amendment as part of leis /her proposal. Any questions
concerning this amendment should be directed to:
Travis Doughty
Purchasing Manager
Phone: (281)420 -6525
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NOVEMBER 2002
CITY OF BAYTOWN
Purchasing
P. O. BOX 424
NOTICE TO PROPOSERS
(281) 420 -6524
Baytown, Texas 77522 -0424
REQUEST FOR PROPOSAL FOR WATER AND
SEWER RATE STUDY FOR THE CITY OF BAYTOWN, TEXAS
PROPOSAL NUMBER RFP 0311 -01
A sealed proposals should be sent with one 1 original and five 5 duplicates to the Purchasing
Manager of the City of Baytown at the address listed below by:
2:00 P.M. 'THURSDAY, JANUARY 30, 2003
Proposers' shall include with this Invitation for Proposal the Specification Sheets appropriately filled
out according to instructions in the Teens and Conditions.
I+AILURE TO SUBMIT A PROPOSAL OR NO- PROPOSAL NOTIFICATION
MAY RESULT IN REMOVAL FROM FUTURE PROPOSERS' LISTS.
TRAVIS DOUGHTY
PURCHASING MANAGER
Phone: (281) 420 -6525
Fax No: (281)420 -6542
NOTE: PIIOPOS.ALS ARE TO BE TURNED IN TO THE PURCHASING DEPARTMENT AT
'11,11l MUNICIPAI, SERVICE CENTER LOCATED AT 2123 MARKET STREET BAYTOWN
TEXAS 77520.
HATE, PROPOSALS WILL NOT BE CONSIDERED.
I'tJ131..1S1 -1 ED: 1 -8 -03
• 1 -15 -03
1
013AYTOWN
I10POSAL TITLE: REQUEST FOR
ItOI'OSAL FOR WATER AND SEWER RATE
TUI)Y FOR THE CITY OF BAYTOWN,
'Iii.XAS
ItOPOSAL NUMBER: 0311 -01
ROPOSAL OPENING DATE 2:00 P.M.:
HU11SDAY, JANUARY 30, 2003
.,A'PI's PROPOSALS WILL NOT BE
: ONSIDERED
Name of Firm, Company
MAXIMUS, INC.
Agent's Name
Jerry McKenzie
Agent's Title
13601 Preston Rd., Suite 40OW
Mailing Address
Dallas Texas 75240
City State Zip
972 - 490 -9990
Telephone
Fax Number
jerrymckenzieCamaximus.com
Em '1 Address
A HO ED SIGNATUR
LU TO MANUALLY S N MAY DISQUALIFY
OPOSAL
PROPOSER AGREES TO COMPLY WITH ALL CONDITIONS BELOW, ATTACHED SPECIFICATIONS, AND NOTES.
PIOPOSER HAS READ AND AGREES TO COMPLY WITH ALL TERMS AND CONDITIONS ON BACK OF INVITATION FOR
PROPOSAL. PURCHASES MADE FOR CITY USE ARE EXEMPT FROM THE STATE SALES TAX AND FEDERAL EXCISE TAX.
DO NOT INCLUDE TAXES IN YOUR PROPOSAL. PROPOSER GUARANTEES PRODUCT OFFERED SHALL MEET OR
EACEED MINIMUM SPECIFICATION IDENTIFIED IN THIS INVITATION FOR PROPOSAL.
A. SUBMIT TO:
CITY OF BAYTOWN, MUNICIPAL SERVICE CENTER, 2123 MARKET STREET,
BAYTOWN, TEXAS 77520
I'll"IM NO.
ITEM AND DESCRIPTION
UNIT PRICE
EXTENSION
REQUEST FOR PROPOSAL FOR WATER
AND SEWER RATE STUDY FOR THE
CITY OF BAYTOWN, TEXAS, per
attached speciEcatiolls.
I ,
Proposer shall submit proposal to furnish a
COST NOT TO
rate analysis for the City of Baytown.
EXCEED:
$ 34,500
PLUS Reimbursables up
to:
V
$ 3,000
W _
ALL PROPOSE IS SHALL MEET OR EXCEED THE MINIMUM SPECIFICATIONS TO BE CONSIDERED AS A
VALID PIO)POSAL. THE CITY OF BAYTOWN RESERVES THE RIGHT TO ACCEPT OR REJECT ALL OR ANY
PART OF ANY PROPOSAL, WAIVE MINOR TECHNICALITIES AND AWARD THE PROPOSAL TO BEST SERVE
TI I It INTEREST OF THE CITY OF BAYTOWN.
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`f
TERMS AND CONDITIONS
•'hhc City or Baytown will accept sealed proposals Monday through Friday, 8:00 a.m. — 12:00 p.m. and 1:00 p.m. — 5:00 p.m. Purchasing
Department is closed from 12:00 p.m. to 1:00 p.m. Proposals nnrsl be received by the PURC14ASING DEPARTMENT and in the
PURCHASING DEPARTMENT before the specified hour and dale of the opening. At that time the proposals will be publicly opened
and read aloud.
2. All proposals should be submitted on the original forms provided, with one copy. Each proposal and its copy should be placed in the
orange envelope provided and properly identified.
3. Late proposals properly identified will be UNOPENED. Late proposals will not be considered under any circumstances.
4. Proposals CANNOT be allered or amended after opening time. Any alterations made before opening time must be initialed by Proposer
or his authorized agent. No proposal may be withdrawn after opening without approval, and based on a written acceptable reason.
5. The City of Baytown reserves the right to revise or amend the specifications prior to dale set for opening proposals. Such revisions or
amendments, if any, will be announced by amendments or addendum to these specifications. Copies of such amendments or addendum
SO issued will be furnished to all prospective Proposers. If Proposer demonstrates just reason for a change, the City of Baytown must
have at least five working days' notice prior to proposal opening date.
6. Should Proposer find discrepancies in or ontissibns from the specifications or other documents or be in doubt as to their
meaning, Proposer should at once notify the Purchasing Department and obtain clarification prior to submitting a proposal.
7. QUOTE F.O.B. destination. Price should include all costs including shipping, handling, and other related costs. Proposal unit price on
quantity specified — extend and show total. In case of errors in extension, UNIT prices shall govern. Proposals subject to unlimited
price increases will not be considered.
8. Proposal offered shall be valid for ninety (90) days from opening date.
9. The City of Baytown is exempt from taxes. DO NOT INCLUDE TAX IN PROPOSAL.
10. The City of Baytown reserves the right to terminate this contract for any reason by notifying the Contractor /Supplier in writing thirty
(30) days prior to the termination of this agreement.
I. Proposer MUST give full firm name and address. Person signing proposal should show TITLE or AUTHORITY TO BIND HIS FIRM
IN A CONTRACT. Authorized signature should appear on each page of the proposal, in the space provided.
12. Any catalog, brand name or manufacturer's reference used in proposal invitation is descriptive — NOT restrictive— it is to indicate type
and quality desired. Proposals on brands of like nature and quality will be considered. If proposing on other than reference
specifications, Proposer must show manufacturer, brand or trade name, lot number, etc., of article offered. If other than brand(s)
specified is offered, illustrations and complete description should be made part of the proposal. If Proposer takes no exceptions to
specifications or reference data, he will be required to furnish brand names, numbers, etc., as specified. All items proposed shall be
new, in first class condition and manufacturer's latest model and design including containers suitable for shipment and storage, unless
otherwise indicated in proposal invitation. Verbal agreements to the contrary will not be recognized.
13. If the brochure or information included with your proposal does not exactly describe the item to be furnished, then notes in the
"PROPOSER'S PROPOSAL" must explain the difference. Proposer shall document under separate cover the reason for the differences.
14. NO substitutions or cancellations shall be permitted without written approval of the City of Baytown.
15. All Proposers must meet or exceed the minimum specifications to be considered as a valid proposal. The City of Baytown reserves
the right to accept or reject all or any part of any proposal, waive minor technicalities and award the proposal to best serve the interests
of the City of Baytown.
16. DELIVERY: Specifications indicate number of days required to place material in receiving department designated location under
normal conditions. A difference in delivery promise may break a tie proposal. Unrealistically short or long delivery promises may
cause proposal to be disregarded. Consistent failure to meet delivery promises without valid reason may cause removal from proposal
list. Delivery shall be made during normal working hours only, 8:00 a.m. to 5:00 p.m. unless prior approval for late delivery has been
obtained.
17. Consistent and continued tie proposing could cause rejection of proposals by the City of Baytown and /or investigation for Anti -Trust
violations.
18. The Contractor /Supplier agrees to protect the City of Baytown from claims involving infringement of patents or copyrights.
19. Purchase order number should be on original invoice and invoice sent to the City of Baytown, PO Box 424, Baytown, TX 77522 -0424;
Attn: Accounts Payable.
20, The City of Baytown shall pay for the product/service within thirty (30) days of receipt and acceptance or within thirty (30) days after
receipt of an invoice for the same, whichever is later . Acceptance by the City of Baytown shall constitute all items proposed being
received and in good working order to the City of Baytown's satisfaction.
•
CITY OF BAYTOWN
REQUEST FOR PROPOSAL FOR WATER AND
SEWER RATE STUDY FOR THE CITY OF BAYTOWN, TEXAS
PROPOSAL NUMBER: RFP- 0311 -01
IN'T'RODUCTION:
The City of Baytown is soliciting proposals front qualified and experienced firms to provide a water,
sewer, and utilities nuIlti -range financial plan and a rate design review. The intent of this proposal is to
enable the City of Baytown to obtain a comprehensive rate study of all water and sewer operating systems
of the City in order to determine what portion of operation and debt is being recovered under the current
rsite structure.
1roposer shall furnish specifications, analysis, rate structure, and time table for completion of an
acceptable rate study for the City of Baytown. The rate study must meet or exceed the minimum
specifications within this proposal. All consultants are invited to submit a proposal. The City of Baytown
shall have the right to reject any or all proposals and, in particular, to reject a proposal not accompanied
by minimum data specifications as required by the proposal documents or a proposal in any way
incomplete or irregular. Tile City of Baytown shall have the right to waive any informality or irregularity
in any proposal received.
SCOPE OF WORK:
This proposal will include all labor, materials and equipment to provide a rate study for the City of
1:3aytown. Proposal shall entail an examination of the financial records of the water and sewer fiend,
interviews with operating managers, and a rate structure evaluation. The proposed rate study will
compare the current versus the proposed utility rates of the City of Baytown to the rates in surrounding
areas, to provide a benchmark for rate adjustments. Proposer shall perform an impact analysis to provide
a "before and after" comparison of typical residential water bills to translate new rates or rate strictures
into meaningful numbers, i.e., ]low much the new rate will cost (or save) the average homeowner. The
rate study will allocate all costs to cost drivers, which are incurred for the benefit of certain customers.
These customers should pay for these specific costs. For example, supplying water to large commercial
users requires the City to incur significant capital expenses that it would otherwise not incur in supplying
water only to residential users. These capital expenses are cost drivers that must be periodically reviewed
and reflected in the commercial rate structure. Based on the result of the study, the revised structure
would increase (or reduce) rates for various classes of customers.
The rate study shall take into consideration, but not be limited to, a transition plan whereby changes in
rate are phased in over a period of time to allow the City the ability to correct subsidies in their rates while
minimizing the financial impact on any customer group. The rate study shall show purpose of task to
forecast the revenues required to support the water, sewer, and storm water utilities over a multi -year
planning period, including the cost of the capital projects over the planning period and usage of impact
fees to partially pay for eligible projects. Proposer shall prepare forecasts of revenues, operation and
maintenance expenditures, and capital improvements.
0
GENERAL RE, OUIREMENTS,: Proposer shall perform cost -of- service and rate analysis to determine
an equitable rate schedule. Proposer shall develop water and sewer rate schedules to meet increased costs
4
i
ill, providing services, Implementation of conservation measures and regulatory Initiatives; for example,
Worm water. Proposer shall perform as follows:
• Analyze current rate design and, if necessary, propose updated design customized to current
demographics and trends of Baytown.
+ Develop a long -range financial plan projecting utility revenue needs for ten (10) year period
and develop equitable cost allocation between various customer classes.
• Development of special rates to address issues such as economic development incentives,
outside of area customers.
• Conduct cost of service study.
• Develop and evaluate rate alternatives.
• Conduct rate studies and develop rate models to include providing City staff a template to be
used for rate analysis in the future.
• Analyze capital improvement program and city's long -term planning initiatives (2001 Bond
Program, Baytown-2020).
• Development and recommendation of water conservation initiatives.
• Development of rates for implementation of storm water requirements.
• Evaluate current service rules and regulations and propose alteratives; for example, process
for oversight and installation of cornmercial/residential taps. Review current ordinances and
recommend updates where needed.
{
• Review competitiveness of proposed city rates as they apply to utility rates in other areas
(in(Iustrial, commercial, residential).
• Rate associated with debt service and coverage as required by revenue bond ordinances. For
example, debt water rate - .01 /1,000 gallons and would include coverage.
i
i • Analyze current minimum charge per active account, develop alternative methodologies, and
recommend best method to compliment proposal.
5
PROPOSAL REQUIREMENTS:
All proposals shall meet or exceed 1111111111LI111 specifications to he considered as valid proposals. Any
S varitilice in any itern must be specified clearly under the Exceptions to Proposer's Proposal by Proposer in
order to have a valid proposal. All proposals received ill response to this invitation shall become the
property of the City of Baytown, shall be retained in its file, and by reference become part of any formal
agreement with the City. Receipt of a proposal by the City does not in and of itself constitute a contract.
The City accepts no responsibility or liability for any cost incurred in the preparation and /or Submission
of such proposal. After award of proposal, all proposals shall be open for public inspection.
Failure to respond to any portion of this proposal, unless otherwise provided for may result in a reduction
of the total numerical graded value and possible rejection of the complete proposal from further
consideration.
INSTRUCTIONS TO PROPOSERS: It is the responsibility of each Proposer, before submitting a
proposal, to examine the documents thoroughly, and request written interpretation or clarifications soon
after discovering any conflicts, ambiguities, errors or omissions in the documents.
DESIGN DRAWINGS /MODELS: Proposer shall include all costs for any design drawings,
spreadsheets, computer models /programs in rate study cost. All models and /or programs shall become
property of the City of Baytown. Training for appropriate City persomlel shall be inclusive in proposal.
EVALUATION CRITERIA: Award will be to the Proposer who provides goods or services at the best
value for the City of Baytown. Consideration shall be given for previous service, references, etc.
Consideration shall be given for rate design and eilhancement to minimum requirements. All Proposers
shall be required to meet or exceed minimum requirements. The proposal shall clearly set forth the basis
of fees for the work proposed and provide a not to exceed cost. The City of Baytown reserves the right to
accept or reject all or any part of any proposal, waive minor technicalities and award the proposal to best
serve the interest of the City of Baytown.
Proposers shall be aware that the City of Baytown will review the proposals with particular weight to the
following factors:
1. Reputation and experience of Proposer in association with water, sewer, and utility
financial services related to rate studies (0 to 25 points)
2. Responsiveness of the written proposal in clearly stating objectives and
methodologies of the work to be performed as outlined in this request for proposal.
(0 to 25 points)
3. Qualifications of staff to be assigned. Education, position in firm, type and years of
experience will be considered, as derived from the written proposal. (0 to 25 points)
4. Compensation, to include quotation of fees or charges, and other cost proposal or cost
breakdown information. (0 to 25 points)
INCLUSIONS:
The Invitation for Proposal, Proposer's Certification, Terms and Conditions, and appropriate design
information required, as well as a not to exceed price for entire proposal, shall be included as part and
Wody of these specifications. Proposer shall submit one (1) original and five (5) duplicates.
tit &I_I If, QIJ LE:
tiller receipt of proposal, it is the intent of the City of Baytown to evaluate the proposals to secure the
es( and linal proposal to meet this Request for Proposals Contract Schedule for Award. Successful
- roposer shall complete rate study presentation by May 30, 2003.
BUSINESS ESTABLISHMENT /REFERENCES: The written proposal submitted should at a
miniirrum include the following:
• A brief history of the firm outlining organizations structure, location of management, and
evidence that the firm is authorized to do business in the State of Texas.
• A description of services, specifically relating to (lie governmental sector, which the Proposer
is capable of providing, together with an explanation of how these services might best assist
the City of Baytown. Proposer shall include specific information on specialized resources
available to your firm such as computer capability, access to market information, persomiel
with specialized knowledge and expertise in the governmental field.
• A chronological listing of the governmental engagements, specifically within the State of
Texas, for which your firm and /or staff has served over the past three (3) years. Be sure to
include specific dates and a brief description of the services provided.
• A list of references the City may contact in order to assist in the evaluation of your past
performance. Please limit these references to governmental entities within the State of Texas
to whom you have provided services over the past three (3) years. For each reference listed,
the information provided should consist of the following:
1) Name and mailing address of the goverrurrental entity.
2) Name and telephone number of your contact person within said governmental
entity.
STANDARDS:
The company shall keep informed of, and comply with all applicable laws, ordinances, rules, regulations
and orders of the City, County, State, Federal or other public bodies having jurisdiction affecting the
work. Violations will be corrected at Company's expense. The Company will pay for all applicable
royalties, permits, and Iicense fees and defend all suits and claims of infringernents of any rights.
INSURANCE RE UIREMENTS: BIDDER SHALL INCLUDE CERTIFICATE OF
INSURANCE WITH THE INVITATION TO BID, OR PRIOR TO AWARD OF BID. BIDDER OR
BIDDER'S INSURANCE AGENT SHALL INCLUDE BID NUMBER AND DESCRIPTION OF
BID ON THE CERTIFICATE OF INSURANCE. THE COMPANIES AFFORDING COVERAGE
AND THE PRODUCER OF THE CERTIFICATE OF INSURANCE SHALL BE LICENSED WITH
THE STATE BOARD OF INSURANCE TO DO BUSINESS IN THE STATE OF TEAS.
The Bidder agrees to provide insurance as required by the City of Baytown, according to the type of
0.00ds or service contractually provided the City of Baytown. The City of Baytown, hereinafter
referred to as the "City," shall be named as an ADDITIONAL INSURED on said policies of
insurance, as its interests may appear after award of bid. Insurance should be provided within ten
7
(10) days of notification of acceptance of bid. Bidder shall provide the City with a Certificate evidencing
11C Cily of Baytown as ADDITIONAL INSURED for coverage prior to award of bid and prior to
g.ceiving_an order for purchase of egr3►plllent, the beginning of the demonstration period for equipalent,
1Frr Inlllatlon of contracted services. Bidder agrees to maintain said coverages of insurance. Bidder shall
}live the City thirty (30) days notice of cancellation except for non - payment of premium. In that case, ten
(10) days notice is required. In the event that the contracted services are altered or modified in any
respcets by the City, Bidder shall provide proof of insurance coverage as outlined in this agreement to
Cover such additional or modified services. If the insurance policy is on a claims -made basis, the Bidder
agrees -to make reasonable efforts to obtain an unlimited reporting endorsement from their insurance
carrier upon non- renewal or expiration of the policy. Waiver of subrogation shall be provided when
Workers compensation requirements apply.
CERTAIN OF THESE PROVISIONS MAY BE WAIVED OR MODIFIED WITH THE APPROVAL
OF CITY COUNCIL AT TIME OF AWARD.
1 N DEMNITY AGREEMENT:
The Contractor hereby agrees to and shall indemnify, hold harmless, and defend the
City, its officers, agents and employees from and against any and all claims, losses,
damages, demands, causes of action, suits and liability of every kind, including all
expenses of litigation, court costs and attorneys' fees, for injury to or death of any
person, for loss of use or revenue, or for damage to any property arising out of or in
connection with the actual or alleged malfunction, design or workmanship in the
manufacture of equipment, the fulfillment of contract, or the breach of any express or
implied warranties under this contract. Such indemnity shall apply where the claims,
losses, damages, causes of action, suits or liability arise in part from (i) the joint
negligence of the City and any other person or entity and /or (ii) the sole or joint
negligence of the contractor, its officers, agents and employees. It is the expressed
intention of the parties hereto, both Contractor and the City, that the indemnity
provided for in this paragraph is indemnity by Contractor to indemnify and protect
the City from the consequence of (i) the City's own negligence where that negligence
is a concurring cause of the injury, death or damage and (ii) the Contractor's own
negligence where that negligence is the sole or joint cause of the injury, death, or
damage. Furthermore, the indemnity provided for in this paragraph shall have no
application to any claim, loss, damage, cause of action, suit and liability where in
injury, death or damage results from the sole negligence of the City unmixed with the
fault of any other person or entity. In the event any action or proceeding is brought
against the City by reason of any of the above, the Contractor agrees and covenants
to defend the action or proceeding by counsel acceptable to the City. The indemnity
provided for herein shall survive the termination or expiration of this agreement.
COMPLIANCE WITH LAWS: Bidder shall comply with all Federal and State laws and City
Ordinances and Codes applicable to the Bidder's operation under this contract. These Specifications and
40, lie contract resulting llerefiom shall be fully governed by the laws of the State of Texas, and shall be fully
performable in Harris County, Texas, where venue for any proceeding arising hereunder will lie. I
►
8
, UQJ';NCE OF SPECIFICATIONS: The apparent silence of specifications as to any detail, or the
apparent omission from it of a detailed description concerning any point, shall be regarded as meaning that
only the best commercial practice is to prevail and that only material and workmanship of the finest
Oluality shall be used. All interpretations of specifications shall be made on the basis of this statement.
ASSIGNMENT: The successful bidder may not assign, sell or otherwise transfer this contract without
prior written consent of the City Council of the City of Baytown.
SEVERABILITY: If any section, subsection, paragraph, sentence, clause, phrase or word of these
requirements or specifications shall be held invalid, such holding shall not affect the remaining portions of
these requirements and the specifications and it is hereby declared that such remaining portions would
have been included in these requirements and the specifications as though the invalid portion had been
omitted.
NON - FUNDING CLAUSE: The City of Baytown's budget is funded on an October I" to September
3011i fiscal year basis. Accordingly, the City of Baytown reserves the right to terminate this contract by
giving Proposer thirty (30) days' writteu notice, without liability to the City, in the event that funding
for this contract is discontinued or is no longer available.
PRICING: The price shall include all costs including labor, travel time, design drawings, computer
models, training, materials, service, shipping, handling, delivery and any other related costs. All quotes
shall be F.O.B. City �ytown City Hall 2401 Market Street, Baytown, Texas 77520.
INVOICE: Invoices shall be sent to:
CITY OF BAYTOWN
P. O. BOX 424
Baytown, TX 77522 -0424
ATTN: ACCOUNTS PAYABLE
PAYMENT: The City of Baytown shall pay the agreed contract price witivn 30 days of receipt of an
invoice or 30 days after work billed is complete, whichever occurs later.
PROPOSAL DELIVERY: The City of Baytown Purchasing Department shall accept proposals
Monday through Friday, 8:00 a.m. - 12:00 p.m. and 1:00 p.m. - 5:00 p.m. Proposals must be received by
the Purchasing Department before the specified hour and date of the opening. The Purchasing
Department is closed from 12:00 p.m. - 1:00 p.m. Proposal is to be properly identified with proposal
number, time and date of opening. Proposer shall submit one (1) original and five (5) duplicate copies.
Submit to:
h /RFP- 0311 -01
2 18 -02
CITY OF BAYTOWN
PURCHASING DEPARTMENT
2123 MARKET STREET
BAYTOWN, TX 77520
Z
•
PROPOSER'S CERTIFICATION
The 1985 Texas Legislature passed HB 620 relating to proposals by nonresident contractors. The
pertinent portion of the Act has been extracted and is as follows:
Section I. (a)
(2) "Nonresident Proposer" means a Proposer whose principal place of business is not in this state, but excludes a contractor
whose ultimate parent company or majority owner leas its principal place of business in this state.
(3) "Texas Resident Proposer" means a Proposer whose principal place of business is in this state, and includes a contractor
Whose ultimate parent company or majority owner has its principal place of business in this stale.
(b) The state or a governmental agency of the state may not award a contract for general construction, improvements, services,
or public works projects or purchases of supplies, materials, or equiptzlent to a nonresident Proposer unless the nonresident's
proposal is lower than the lowest proposal submitted by a responsible Texas resident Proposer by (lie same amount that a Texas
resident Proposer would be required to underpropose a nonresident Proposer to obtain a comparable contract in the state in
which the nonresident's principal place of business is located.
I certify that MAXIMUS, INC.
defined in HB 620.
(Company Name)
is a resident Proposer of Texas as
Signature Lo-L-4- wo,
Print Name Robert; McLain
I certi fy that
(Company Name)
defined in HB 620 and our principal place of business is:
•
and State)
Signature
Print Name
10
is a Nonresident Proposer as
•
EXCEPTIONS TO SPECIFICATIONS
If any item, material or equipment submitted as a part of this proposal does not fully meet or exceed the minimum
specifications as published, the exception(s) MUST be listed on this sheet and attached to the proposal.
Section Item /Material /Equipment Proposal Reasou
WA
If no exceptions are listed, it will be assumed that the proposal meets or exceeds the minimum
specifications and any purchase contract as a result of this proposal will be contingent on that condition.
Company : MAXIMUS, INC.
Agent
17-�
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SUPPLIER INFORMATION FORM
•
COMPANY'S FULL BUSINESS NAME:
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PI-1 VS I CAI, ADDRESS:
13601 Preston Rd., Suite 40OW
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Dallas, Texas 75240
1'I•10NE ft:
972-490-999Q
FAX #:
972-490-3040
CONTACT PERSON:
Robert McLain
PI -IONS #:
972-490-9990
REMITTANCE ADDRESS: for 1�avmnts
MWIMUS, INC.
P.Q. Box 791188
Baltimore, MD 21279-1188
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FAX th
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CONTACT PERSON:
111-IONE #:
PAYMENT TERMS/DISCOUNT:
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COMPANY TAX ID 4:
54-1000588
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PLEASE FILL OUT THIS FORM AND FAX OR RETURN TO PURCHASING
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•
SAMPLE QUESTIONNAIRE
In an effort to better serve our suppliers, the City of Baytown
Purchasing Department is conducting the following survey. We
appreciate the time and effort expended to submit your offer.
Please take an additional moment to complete the survey below.
If you have any questions or need more information, please call
our Purchasing Department at 281- 420 -6524.
HOW DID YOU RECEIVE NOTICE OF THIS REQUEST FOR BID OR
PROPOSAL?
Local Newspaper advertisement
Internet Access
X Word of Mouth
Other (Please explain
X Are you a member of Deniandstar by Onvia?
C]
THANK YOU!
/ -7 -02
13
CITY OF BAYTOWN
PURCHASING DEPARTMENT
NO PROPOSAL NOTIFICATION
PROPOSAL TITLE:
PROPOSAL NUMBER:
SUPPLIER NAME:
ADDRESS:
AGENT'S NAME:
TELEPHONE:
The CITY OF BAYTOWN is interested in receiving competitive pricing on all items proposal. We also
desire to keep your firm as a Proposer and a supplier of materials and equipment. Therefore, it is
important for us to determine why you are'not submitting a proposal on this item. We will analyze your
input carefully and try to detennine if future changes are needed in our specifications and procedures.
i did not submit a proposal for the following reasons: (PLEASE CHECK ONE OF THE LISTED
REASONS)
Do not supply the requested product.
Quantities offered are too small or too large to be supplied by your
company. (Please circle one of the underlined.)
Specifications are "too tight" or written around a particular product.
(Please elaborate on this item.)
Can-not proposal against manufacturer or jobber on this item.
(Please circle one of the underlined).
Time frame for proposing was too short for my organization.
Not awarded a previous contract by the City when you felt you were
low Proposer.
Other
• if you wish to remain on the City's proposal '11st for this item, please indicate:
I wish to remain. I do not wish to remain.
14
i
INSURANCE REQUIREMENTS
MAXIMUS, INC. will provide Certificate of Insurance prior to award of bid and bidder's
insurance agent shall include bid number and description of bid on the Certificate of
Insurance.
C]
AGREEMENT TO PROVIDE
PROFESSIONAL CONSULTING SERVICES TO
CITY OF BAYTOWN. TEXAS
THIS AGREEMENT, entered into this -1-4-h day day of �9003 and effective
immediately by and between MAXEV US, INC. (hereinafter called the "C nsultant") and City of
Baytown, Texas (hereinafter called the "City"), WITNESSETH THAT:
WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced
in the area of conducting water and sewer rate studies, and
WHEREAS, the City desires to engage the Consultant to assist in developing a water
and sewer rate study, and
NOW THEREFORE, the parties hereto mutually agree as follows:
1. Employment of Consultant. The City agrees to engage the Consultant and the
Consultant hereby agrees to perform services as outlined in its proposal for water & sewer rate
study dated January 27, 2003 (the "Proposal'). The Proposal is attached hereto and incorporated
herein by this reference for all intents and purposes, provided that in the event of any conflict or
inconsistency between the provisions of this Agreement and the provisions of the Proposal, the
provisions of this Agreement shall control.
2. Scone of Services. The Consultant shall perform and carry out in a good and
professional manner the services as outlined in the Proposal. Consultant shall perform all
services under this Agreement with the care and skill ordinarily used by members of profession
practicing under the same or similar circumstances, time and locality. Additionally, the
Consultant shall be responsible for the technical accuracy of its services and documents resulting
therefrom, and the City shall not be responsible for discovering deficiencies therein. Consultant
shall correct deficiencies without additional compensation.
3. Time of Performance. The services to be performed hereunder by the Consultant
shall be undertaken and completed in such sequence as to assure their expeditious completion
and best carry out the purpose of the Agreement. The Consultant must submit and obtain the
approval of the City Council of a water and sewer rate study on or before May 29, 2003.
4. Compensation. The City agrees to pay the Consultant a sum not to exceed thirty -four
thousand, five hundred dollars ($34,500) for all services required, plus reimbursement for travel
and associated travel expenses not to exceed three thousand dollars ($3,000).
5. Method of Payment. The Consultant shall be entitled to payment in accordance with
the provisions of this paragraph. The Consultant will invoice the City showing a detailed listing
Agreement to Provide Professional Consulting Services Page 1
of all services performed upon both completion of a water and sewer rate study and acceptance of
such study by the City Council. Travel and associated travel expenses may be invoiced monthly
and shall show a detailed listing of such expenses. Receipts for expenses shall be available for
audit and provided to the City at no additional expense upon request. The City shall have thirty
(30) days to pay Consultant's invoice from the date of receipt of such invoice. All invoices must
identify with specificity the expenses incurred, and/or the work or services performed and the
date(s) of such expense, work or services. In the event of a disputed or contested invoice, the
parties understand and agree that the City may withhold the portion so contested, but the
undisputed portion will be paid.
6. Changes. The City may, from time to time, require changes in the scope of the
services of the Consultant to be performed hereunder. Such changes, which are mutually agreed
upon by and between the City and the Consultant, shall be incorporated in written amendment to
this Agreement.
7. Services and Materials to be Furnished by the City. The City shall locally furnish
the Consultant with all available necessary information, data, and material pertinent to the
execution of this Agreement. The City shall cooperate with the Consultant in carrying out the
work herein and shall provide adequate staff for liaison with the Consultant and other agencies of
the City government.
8. Termination of Agreement for Cause. The City may terminate this Agreement at
any time by giving at least (5) days prior written notice of termination to the Consultant. Upon
delivery of any notice of termination required herein, Consultant shall discontinue all services in
connection with the performance of the Agreement. Within ten (10) days after receipt of the
notice of termination, Consultant shall submit a final statement showing in detail the services
satisfactorily performed and accepted and all other appropriate documentation required herein for
payment of services. At the same time that the final statement is tendered to the City, Consultant
shall also tender all of Consultant's work product, whether complete or not, in an acceptable
form and format to the City's liaison. No final payment will be made until all work product is so
tendered. The calculation of payment shall be pursuant to the mutual agreement of the parties
provided, however, Consultant shall not be entitled to anticipatory profit. If this Agreement is
terminated for cause, Consultant shall be liable for any damage to the City resulting therefrom.
This liability includes any increased costs incurred by the City in completing Consultant's work.
The rights and remedies of the City in this section are in addition to any other rights and
remedies provided by law or under this Agreement.
9. Information and Reports. The Consultant shall, at such time and in such form as the
City may require, furnish such periodic reports concerning the status of the project, such
statements, certificates, approvals and copies of proposed and executed plans and claims and
other information relative to the project as may be requested by the City. The Consultant at the
completion of the services under this Agreement shall furnish the City a final report in such form
as may be required by the City. Furthermore, the Consultant will provide the City with a copy of
the computerized rate model, in Microsoft Excel format, supporting all findings of the study.
The rate model should be in suitable form for annual updates by City staff.
Agreement to Provide Professional Consulting Services, Page 2
10. Right of Review and Audit. City may review any and all of the services
performed by Consultant under this Agreement. City is hereby granted the right to audit, at
City's election, all of Consultant's billings relating to the performance of this Agreement.
Consultant agrees to retain such records for a minimum of three (3) years following completion
of this Agreement.
11. Ownership of Documents. Upon acceptance or approval by City or upon
termination of this Agreement, all reports, information and other data, given to, prepared or
assembled by Consultant under this Agreement, and any other related documents or items shall
become the sole property of City and shall be delivered to City, without restriction on future use.
Consultant may make copies of any and all documents for its files.
12. Notices. Unless otherwise provided in this Agreement, any notice provided for or
permitted to be given must be in writing and delivered in person or by depositing same in the
Unites States mail, postpaid and registered or certified, and addressed to the party to be notified,
with return receipt requested, or by delivering the same to an officer of such party. Notice
deposited in the mail as described above shall be conclusively deemed to be effective, unless
otherwise stated in this Agreement, from and after the expiration of three (3) days after it is so
deposited.
For the purpose of notice, the addresses of the parties shall be as follows unless properly
changed as provided for herein below:
CITY: CONSULTANT:
City of Baytown MAXIMUS, INC.
Gary Jackson, City Manager Robert McLain, Senior Manager
2401 Market Street 13601 Preston Road, Suite 400 West
Baytown, TX 77520 Dallas, TX 75240
Each party shall have the right from time to time at any time to change its respective address and
each shall have the right to specify a new address, provided that at least fifteen (15) days' written
notice is given of such new address to the other party.
13. Insurance. Consultant shall procure and maintain at his sole cost and expense for
the duration of the Agreement, insurance against claims for injures to person or damages to
property which may arise from or in connection with the performance of the Work hereunder by
Consultant, his agents, representatives, volunteers, employees or subconsultants.
a. Consultant's insurance coverage shall be primary insurance with respect to the
City, his officials, employees and agents. Any insurance or self-insurance
maintained by the City, his officials, employees or agents shall be considered in
excess of Consultant's insurance and shall not contribute to it. Further,
Consultant shall include all subconsultants, agents and assigns as additional
insureds under its policy or shall furnish separate certificates and endorsements
for each such person or entity. All coverages for subconsultants and assigns shall
be subject to all of the requirements stated herein.
Agreement to Provide Professional Consulting Services, Page 3
The following is a list of standard insurance policies along with their respective
minimum coverage amounts required in this Agreement:
1. Commercial General Liability
■ General Aggregate: $1,000,000
■ Products & Completed Operations Aggregate: $1,000,000
■ Personal & Advertising Injury: $1,000,000
■ Per Occurrence: $500,000
■ Fire Damage $50,000
■ Coverage shall be at least as broad as ISO CG 00 01 10 93
■ No coverage shall be deleted from standard policy without
notification of individual exclusions being attached for review and
acceptance.
2. Business Automobile Policy
■ Combined Single Limits: $500,000
■ Coverage for "Any Auto"
3. Errors and Omissions
■ Limit: $1,000,000 for this project.
■ For all architects, engineers, and/or design companies
■ Claims -made form is acceptable
■ Coverage will be in force for three (3) years after construction of
the Project is completed.
4. Workers' Compensation
■ Statutory Limits
■ Employer's Liability $500,000
■ Waiver of Subrogation required.
b. The following shall be applicable to all policies of insurance required herein.
1. Insurance carrier must have an A.M. Best Rating of A:VIII or better.
2. Only insurance carriers licensed and admitted to do business in the State of Texas
will be accepted.
3. Liability policies must be on occurrence form. Errors and Omissions can be on
claims -made form.
4. Each insurance policy shall be endorsed to state that coverage shall not be
suspended, voided, canceled or reduced in coverage or in limits except after sixty
(60) days' prior written notice by certified mail, return receipt requested, has been
given to the City.
Agreement to Provide Professional Consulting Services, Page 4
5. The City, its officers, agents and employees are to be added as Additional
Insureds to all liability policies, with the exception of the Errors and Omissions
Policy required herein.
6. Upon request and without cost to the City, certified copies of all insurance polices
and/or certificates of insurance shall be furnished to the City.
7. Upon request and without cost to the City, loss runs (claims listing) of any and/or
all insurance coverages shall be furnished to the City.
8. All insurance required herein shall be secured and maintained in a Consultant or
companies satisfactory to the City, and shall be carried in the name of Consultant.
Consultant shall provide copies of insurance policies required hereunder to the
City on or before the effective date of this Agreement.
14. Indemnification and Release.
CONSULTANT AGREES TO AND SHALL INDEMNIFY AND
HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS,
AGENTS, AND EMPLOYEES (HEREINAFTER REFERRED TO
AS THE "CITY ") FROM AND AGAINST ANY AND ALL CLAIMS,
LOSSES, DAMAGES, CAUSES OF ACTION, SUITS AND
LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF
LITIGATION, COURT COSTS, AND ATTORNEY'S FEES, FOR
INJURY TO OR DEATH OF ANY PERSON, FOR DAMAGE TO
ANY PROPERTY, OR FOR ANY BREACH OF CONTRACT,
ARISING OUT OF, OR IN CONNECTION WITH THE WORK
DONE BY CONSULTANT UNDER THIS AGREEMENT CAUSED
BY THE JOINT NEGLIGENCE OF THE CITY AND ANY OTHER
PERSON OR ENTITY AND /OR BY THE SOLE OR JOINT
NEGLIGENCE OF CONSULTANT AND ANY OTHER PERSON
OR ENTITY. IT IS THE EXPRESSED INTENTION OF THE
PARTIES HERETO, BOTH CONSULTANT AND THE CITY,
THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH
IS INDEMNITY BY CONSULTANT TO INDEMNIFY AND
PROTECT THE CITY FROM THE CONSEQUENCES OF (1) THE
CITY'S OWN NEGLIGENCE WHERE THAT NEGLIGENCE IS
THE CONCURRING CAUSE OF THE RESULTING INJURY,
DEATH OR DAMAGE AND (2) CONSULTANT'S OWN
NEGLIGENCE, WHETHER THAT NEGLIGENCE IS THE SOLE
OR A CONCURRING CAUSE OF THE RESULTING INJURY,
DEATH OR DAMAGE. SUCH INDEMNITY SHALL NOT APPLY,
Agreement to Provide Professional Consulting Services, Page 5
HOWEVER, TO LIABILITY ARISING FROM THE PERSONAL
INJURY, DEATH, OR PROPERTY DAMAGE OF PERSONS THAT
IS CAUSED BY OR RESULTS FROM THE SOLE NEGLIGENCE
OF THE CITY. IN THE EVENT THAT ANY ACTION OR
PROCEEDING IS BROUGHT AGAINST THE CITY FROM
WHICH THE CITY IS INDEMNIFIED, CONSULTANT FURTHER
AGREES AND COVENANTS TO DEFEND THE ACTION OR
PROCEEDING BY LEGAL COUNSEL ACCEPTABLE TO THE
CITY.THE INDEMNITY PROVIDED FOR IN THIS ARTICLE VII
SHALL SURVIVE THE TERMINATION OR EXPIRATION OF
THIS AGREEMENT.
By this Agreement, the City does not consent to litigation or suit, and the City
hereby expressly revokes any consent to litigation that it may have granted by the
terms of this Agreement or any other contract or agreement, any charter, or
applicable state law. Consultant assumes full responsibility for its work performed
hereunder and hereby releases, relinquishes and discharges the City, its officers,
agents, and employees from all claims, demands, and causes of action of every kind
and character, including the cost of defense thereof, for any injury to or death of
any person (whether they be either of the parties hereto, their employees, or other
third parties) and any loss of or damage to property (whether the property be that
of either of the parties hereto, their employees, or other third parties) that is caused
by or alleged to be caused by, arising out of, or in connection with Consultant's
work to be performed hereunder. This release shall apply with respect to
Consultant's work regardless of whether said claims, demands, and causes of action
are covered in whole or in part by insurance.
15. Subcontractors and Subconsultants. Consultant shall receive written approval
of the City's liaison prior to the use of any subcontractors or subconsultants. A copy of all
proposed contracts with subconsultants and/or subcontractors shall be given to the City before
execution of such contracts.
16. Records. Within ten days of the City's request and at no cost to the City, the City
will be entitled to review and receive a copy of all documents that indicate work on the project
that is the subject of this Agreement.
17. Supervision of Consultant. Consultant is an independent contractor and the City
neither reserves nor possesses any right to control the details of the Work performed by
Consultant under the terms of this Agreement.
18. Governing Law. This Agreement has been made under and shall be governed by
the laws of the state of Texas. The parties further agree that performance and all matters related
thereto shall be in Harris County, Texas.
Agreement to Provide Professional Consulting Services, Page 6
19. Venue. The obligations of the parties to this Agreement are performable in Harris
County, Texas, and if legal action is necessary to enforce same, exclusive venue shall lie in
Harris County, Texas.
20. No Third Party Beneficiarx. This Agreement shall not bestow any rights upon
any third party, but rather, shall bind and benefit Consultant and the City only.
21. No Right to Arbitration. Notwithstanding anything to the contrary contained in
this Agreement, the City and Consultant hereby agree that no claim or dispute between the City
and Consultant arising out of or relating to this Agreement shall be decided by any arbitration
proceeding including, without limitation, any proceeding under the Federal Arbitration Act (9
U.S.C. Sections 1 -14), or any applicable State arbitration statute, including, but not limited to,
the Texas General Arbitration Act, provided that in the event that the City is subjected to an
arbitration proceeding notwithstanding this provision, Consultant consents to be joined in the
arbitration proceeding if Consultant's presence is required or requested by the City of complete
relief to be recorded in the arbitration proceeding.
22. Waiver. No waiver by either party to this Agreement of any term or condition of
this Agreement shall be deemed or construed to be a waiver of any other term or condition or
subsequent waiver of the same term or condition.
23. Complete Agreement. This Agreement represents the entire and integrated
agreement between the City and Consultant in regard to the subject matter hereof and supersedes
all prior negotiations, representations or agreements, either whether written or oral, on the subject
matter hereof. This Agreement may only be amended by written instrument approved and
executed by both of the parties. The City and Consultant accept and agree to these terms.
24. No Assignment. Consultant may not sell or assign all or part interest in the
transport of the materials to another party or parties without the prior express written approval of
the City Manager of such sale or assignment. The City may require any records or financial
statements necessary in its opinion to ensure such sale or assignment will be in the best interest
of the City.
25. Headings. The headings used in this Agreement are for general reference only
and do not have special significance.
26. Severability. All parties agree that should any provision of this Agreement be
determined to be invalid or unenforceable, such determination shall not affect any other term of
this Agreement, which shall continue in full force and effect.
27. Ambiguities. In the event of any ambiguity in any of the terms of this
Agreement, it shall not be construed for or against any party hereto on the basis that such party
did or did not author the same.
28. Non - Discriminatory Policy. Consultant agrees that as to all of its programs and
activities conducted on the subject premises, it shall comply fully with all Civil Rights Acts and
specifically will not discriminate against any person on the basis of race, color, national origin,
sex or by reason of being handicapped.
Agreement to Provide Professional Consulting Services, Page 7
29. Compliance with Applicable Laws. The Agreement is subject to all legal
requirements in the City Charter and other laws, state and federal laws, regulations orders and
rules of the State, County, City and all other governmental agencies.
30. Attorney Fees: In the event that either the City or the Consultant or both shall file
or otherwise commence any legal action or proceeding against the other relating to this
Agreement including, but not limited to, a declaratory judgment action under state or federal law,
the parties hereby agree to waive any and all rights to recover attorneys' fees, to which the
prevailing party might otherwise be entitled.
31. Authoritv. The officers executing this Agreement on behalf of the parties hereby
represent that such officers have full authority to execute this Agreement and to bind the party
he /she represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deemed to be an original, but all of which shall constitute but one
and the same Agreement on the date first written above.
CITY OF BAYTQWN, TEXAS
IM
Manager
ATTFCT-
Agreement to Provide Professional Consulting Services, Page 8
ACID RAMIREZ, SR., a Attorney
STATE OF TEXAS §
COUNTY OF HARRIS §
MAXIMUS, INC.
By
?IM e"Vice dent
Before me on this day personally appeared Jerry McKenzie, in his capacity as Vice
President of Maximus, Inc., on behalf of such Consultant,
known to me;
proved to me on the oath of , or
proved to me through his current
{description of identification card or other document issued by the federal
government or any state government that contains the photograph and signature of
the acknowledging person}
(4 one)
to be the person whose name is subscribed to the foregoing instrument and acknowledged to me
that he executed the same for the purposes and consideration therein expressed.
SUBSCRIBED AND SWORN before me this day of 2003.
Notary Public in and for the State of Texas
ELLEN ANDERTON
FYA otary ptt!ic a!�!A of Kansas
. Ex pires /- AI --61
FAKaren\Files \Contracts \Water and Sewer Rate Contract \BaytownAgreement2003C1ean.doc
Agreement to Provide Professional Consulting Services, Page 9
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