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R2020-149 2020-08-24RESOLUTION NO. R2020-149 A Resolution of the City Council of the City of Pearland, Texas, authorizing a consultant services agreement for Utility Billing Process/System review and assessment services, to Raftelis Financial Consultants, Inc., in the amount of $98,000.00. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain consultant services agreement for Utility Billing Process/System, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a contract for consultant services. PASSED, APPROVED and ADOPTED this the 24th day of August, A.D., 2020. ATT CRYS V L ROAN, TRMC, CITY SECRETARY APPROVED AS TO FORM: CfrieszDARRIN M. COKER CITY ATTORNEY TOM REID MAYOR ```, ,111111,1„I II/ .,''°t� Q PRNO1,i''\ sr •• N4.41L-- •0..T.12 CITY OF PEARLAND UTILI 1 Y BILLING DEPARTMENT 3 519 Liberty Drives Pearland, Texas 77581 General Services Contract Amendment For: _assessment of utility billing processes/systems and collection services D ate of Issuance: 11/24/2020 Amendment No: 1 Contractor: Raftelis Financial Consultants, Inc PO#: 2020-00001787; R2020-149 Explanation for Amendment: This Amendment encompasses the following: extending the contract term from December 15, 2020 to now end January 29, 2021. D escription of Work Cost Time 1. Adding additional days to contract $ 45 Days 2. $ Days 3. $ Days Please attach back-up documentation, Cost & Time Change Summary: Cost Time Original Contract: $ 106 Days Previous Amendment(s): $ Days N et increase (decrease) from this Amendment: $ 45 Days Revised Contract: $ 98,000 151 Days S ignatures. By signing below, the parties agree to the terms of this Contract: CITY OF PEARLAND: John Mccarter Digitally signed by John Mccarter DU: cn=John Mccarter, o=Gty of Pearland, ou=Finance, email=jmccarter@pearlandtx.gov, c=US —vats 2020.11.231801:16 -06'00' Assistant Erna �e Direct/ /) Date �tle: Executive Vice President /�,��__ Date: 11/24/2020 11-23-2020 CONTRACTOR**: a e• ity Man ger Assistant City Manager Director Superintendent/Manager *Contract Signature Authority: Superintendent/Manager -$5,999 or less Director - $6,000 to $30,000 City Manager/Assistant City Managers - $30,001 to $50,000 City Council Resolution - $50,000+ 2-v N , ** Contractor agrees to perform change(s) included in this Contract Amendment for the price, scope and/or time indicated. The prices for changes include all costs associated with this Contract Amendment. No work shall be performed until this Amendment is executed and a changed purchase order has been issued by the City. Upon execution by all parties, the changes identified for the Contract Value and/or Contract Time shown, are made part of the Contract, and all other provisions of the original contract shall remain in full force and effect. GSA Amendment 1 of 1 4/2019 City of Pearland 3519 Liberty Drive Pearland, TX 77581 General Services Contract This Contract (Contract) is made between the City of Pearland, Texas (City), and Contractor. The City and Contractor agree to the terms and conditions of this Contract, which consists of the following parts: I Summary of Contract Terms II Signatures III. Standard Contractual Provisions IV. Special Terms and Conditions V. Additional Contract Attachments I. Summary of Contract Terms. Contractor: Description of Services: Contract Type: Effective Date: Termination Date: Renewal: Raftelis Financial Consultants, Inc 3755 S. Capital of TX Hwy, Suite 155 Austin, TX 78704 Contractor will provide a comprehensive assessment of utility billing processes/systems and collection services, for the City of Pearland, per the specifications of bid # 0520-37, 82020-149. U nit Price Contract, Estimated Amount of $98,000. S eptember 1, 2020 December 15, 2020 N o renewal options are contemplated at this time. II. Signatures. By signing below, the parties agree to the terms of this Contract: CITY OF PEARLAND: John Mccarter D:gita'y srgned by John Mccarter DU: cn=John Mccarter, o --City of Pearhnd, ou=Rnance, email=jmccarter pearlandr( goy, c=US Date: 2020.03 27 13:1528 -05'00' 8-27-2020 Assistant F nce Director /44,- CONTRACTOR: Date Ytl40440 e: Executive Vice President Citnager Assistant City Manager Director Superintendent/Manager *Contract Signature Authority: Date: 8/26/2020 Superintendent/Manager -$5,999 or less Director - $6,000 to $30,000 City Manager/Assistant City Managers - $30,001 to $50,000 City Council Resolution - $50,000+ Page 1 of 4 III. Standard Contractual Provisions. A. Definitions. Contract means this Standard Services Contract. Services means the services for which the City solicited bids or received proposals as described in Exhibit A, attached hereto. B. Services and Payment. Contractor will furnish Services to the City in accordance with the terms and condifons. specified in this Contract. Contractor will bill the City for the Services provided at intervals of at least 30 days except for the final billing. The City shall pay Contractor for the Services in accordance with the terms of this Contract, but all payments to be made by the City to Contractor, including the time of payment and the payment of interest on overdue amounts, are subject to the applicable provisions of Chapter 2251 of the Government Code. C. Termination Provisions. (1) City Termination for Convenience. Under this paragraph, the City may terminate this Contract during its term at any time for the City's own convenience where the Contractor is not in default by giving written notice to Contractor. If the City terminates this Contract under this paragraph, the City will pay the Contractor for all services rendered in accordance with this Contract to the date of termination. (2) Termination for Default. Either party to this Contract may terminate this Contract as provided in this paragraph if the other party fails to comply with its terms. The party alleging the default will give the other party notice of the default in writing citing the terms of the Contract that have been breached and what action the defaulting party must take to cure the default. If the party in default fails to cure the default as specified in the notice, the party giving the notice of default may terminate this Contract by written notice to the other party, specifying the date of termination. Termination of this Contract under this paragraph does not affect the right of either party to seek remedies for breach of the Contract as allowed by law, including any damages or costs suffered by either party. (3) Multi -Year Contracts and Funding. If this Contract extends beyond the City's fiscal year in which it becomes effective or provides for the City to make any payment during any of the City's fiscal years following the City's fiscal year in which this Contract becomes effective and the City fails to appropriate funds to make any required Contract payment for that successive fiscal year and there are no funds from the City's sale of debt instruments to make the required payment, then this Contract automatically terminates at the beginning of the first day of the City s successive fiscal year of the Contract for which the City has not appropriated funds or otherwise provided for funds to make a required payment under the Contract. D. Liability and Indemnity. Any provision of any attached contract document that limits the Contractor's liability to the City or releases the Contractor from liability to the City for actual or compensatory damages, loss, or costs arising from the performance of this Contract or that provides for contractual indemnity by one party to the other party to this Contract is not applicable or effective under this Contract. Except where an Additional Contract Document provided by the City provides otherwise, each party to this Contract is responsible for defending against and liable for paying any claim, suit, or judgment for damages, loss, or costs arising from that party's negligent acts or omissions in the performance of this Contract in accordance with applicable law. This provision does not affect the right of either party to Page 2 of 4 this Contract who is sued by a third party for acts or omissions arising from this Contract to bring in the other party to this Contract as a third -party defendant as allowed by law. E . Assignment. The Contractor shall not assign this Contract without the prior written consent of the City. F. Law Governing and Venue. This Contract is governed by the law of the State of Texas and a lawsuit may only be prosecuted on this Contract in a court of competent jurisdiction located in or having jurisdiction in Brazoria County, Texas. G. Entire Contract. This Contract represents the entire Contract between the City and the Contractor and supersedes all prior negotiations, representations, or contracts, either written or oral. This Contract may be amended only by written instrument signed by both parties. H . Independent Contractor. Contractor shall perform the work under this Contract as an independent contractor and not as an employee of the City The City has no right to supervise, direct, or control the Contractor or Contractor's officers or employees in the means, methods, or details of the work to be performed by Contractor under this Contract. The City and Contractor agree that the work performed under this Contract is not inherently dangerous, that Contractor will perform the work in a workmanlike manner, and that Contractor will take proper care and precautions to insure the safety of Contractor's officers and employees. I. Dispute Resolution Procedures. The Contractor and City desire an expeditious means to resolve any disputes that may arise between them regarding this Contract If either party disputes any matter relating to this Contract, the parties agree to try in good faith, before bringing any legal action, to settle the dispute by submitting the matter to mediation before a third party who will be selected by agreement of the parties The parties will each pay one- half of the mediator's fees. J. Attorney's Fees. Should either party to this Contract bring suit against the other party for breach of contract or for any other cause relating to this Contract, neither party will seek or be entitled to an award of attorney's fees or other costs relating to the suit. K . Severability. If a. court finds or rules that any part of this Contract is invalid or unlawful, the remainder of the Contract continues to be binding on the parties. IV. Special Terms or Conditions. Attached are the federally -required Certifications and Assurances that may be applicable to the Contractor. V. Additional Contract Documents. None. A. Contractor's Additional Contract Documents: 1. The contractor's response (Exhibit B) to bid # 0520-37 (Exhibit C) shall be construed as additional contract documents. 2 Executed Contractor Insurance Requirements & Agreement (required insurance certificate[s] shall be in possession of City at actual commencement of work). B . City's Additional Contract Documents: 1. Scope of Services as listed on the attached. Page 3 of 4 EXHIBIT A CONTRACTOR'S SCOPE OF SERVICES Scope of services shall consist of the contractor providing a comprehensive assessment of utility billing processes/systems and collection services for the City of Pearland, as needed, per the specifications of bid # 0520-37, R2020-149. Pricing is as follows per contractor's response to the same, lump sum total cost $98,000. Michelle Ferguson, Engagement Director Seth Garrison, Project Manager Angie Flores, Project Advisor Chris McPhee, Lead Consultant Joshua Rauch, Lead Consultant Kelsey Engelking, Project Support Estimated Hours $275 $245 $245 $215 $185 $155 30 100 25 28 128 108 Page 4 of 4 I oet. If I Ills • The Novak .• b. ,. Consulting Group •et. .. • A PART OF RAFTELIS Exhibit B Utility Billing Process & System Review PROPOSAL RFP #0520-37 / JUNE 11, 2020 City of Peariand REGISTERED MUNICIPAL A WUSOR Raftelis is registered with the U.S. Securities and Exchange Corninission (SEC) and the Municipal Secturities Rulcniaking Board (MSRB) as a Municipal Advisor. Registration as a Municipal Advisor is a requirement under the Dodd -Frank Wall Street Reform and Consumer Protection Act. All firms that provide financial forecasts that include assumptions about the size, timing, and terms for possible future debt issues, as well as debt issuance support services for specific proposed bond issues, including bond feasibility studies and coverage forecasts, must be registered with the SEC and MSRB to legally provide financial opinions and advice. Raftelis' registration as a Municipal Advisor means our clients can be confident that Raftelis is fully qualified and capable of providing financial advice related to all aspects of utility financial planning in compliance with the applicable regulations of the SEC and the MSRB. June 11, 2020 Ms. Julie Blackmore Contract Administrator City of Pearland 3193 Liberty Drive Pearland, TX 77581 Subject: Proposal for City of Pearland Utility Billing Process and System Review Dear Ms. Blackmore: * 1 • The Novak • Consulting Group R A F T E L I S A PART OF • :. • .. Raftelis is pleased to submit this proposal to conduct a Utility Billing Process and System Review for the City of Pearland (City). We appreciate the opportunity to submit our proposal, which has been developed to provide the City with concise yet thorough information that introduces our team's qualifications, experience, and approach, which we believe will be a great match for your project needs. Based on our knowledge of, and direct experience, with the City of Pearland, we know that the community expects high levels of service, value, and efficiency for its taxes, fees, and utility charges. Helping local governments maximize their resources to meet these expectations is what we do. We have the nation's largest and most experienced practice focused on public water utility management, operations, and financial consulting. We provide exceptional services to assist municipalities, like the City of Pearland; in meeting their performance objectives. For more than 25 years, Raftelis has focused on helping utility and local government clients solve their financial, organizational, and technology challenges. Raftelis has served as a trusted advisor to more than 1,000 utility organizations throughout the U.S., including many in Texas. We have a thorough understanding of water/wastewater/stormwater utility billing operations and the organizational improvement activities required to help organizations successfully identify and achieve process improvements. We have provided expert advice on previous process improvement engagements for municipal utilities and understand the complexity of meter -to -cash process evaluation and improvement engagements. The Raftelis brand continues to strengthen in 2020 through the acquisition of The Novak Consulting Group (TNCG), which deepens our management consulting expertise for local governments. TNCG provides additional resources focused on providing the best thinking and execution in organizational design, development, and improvement. Our team is composed of professionals with diverse backgrounds who can provide the needed services and support. Our core project team has extensive experience in managing and performing process improvement and optimization initiatives as consultants and as local government employees. We will utilize a project framework that encourages collaboration, culture building, and continuous improvement. Raftelis will provide the City with insightful process improvement analysis, thorough risk control evaluation, and thoughtful recommendations for the future state of the City's water utility billing business processes. We are proud of the resources that we can offer and welcome the opportunity to assist the City in this engagement. If you have any questions, please do not hesitate to contact me using the following information: Julia Novak, Executive Vice President — Phone: 513.221.0500 / Email: jnovak@raftelis.com Sincerely, psyrainflese Julia Novak Executive Vice President 3755 S. Capital of Texas Highway, Suite 155, Austin, TX 78704 Raftelis.com Table of Contents Photo on cover courtesy of formulaone (Flickr) Firm Overview Experience Project Team Project Approach Schedule Cost FIRM OVERVIEW 1 MT 110 Ar A l MTCO RAFTELWtHE NOVAK CONSULT NG GROUP IS THE TRUSTED ADVISOR TO UTILITY AND LOCAL GOVERFMFNT AGENCIESU 4. VISIT RAFTELIS.COM OR THENOVAKCONSULTINGGROUP.COM TO LEARN MORE 1 Raftelis/TNCG provides utilities and public -sector organizations with insights and expertise to help them operate as high -performing, sustainable entities providing essential services to their residents. We help our clients solve their financial, organizational, technology, and communication challenges, achieve their objectives, and, ultimately, make their communities better places to live, work, and play. ThICG is Now Iart of Raftelis Raftelis and TNCG have always shared a focus on delivering lasting solutions for public -sector agencies. In January 2020, TNCG domed Raftelis. Today, we provide our clients with wide-ranging capabilities and resources in financial, management, technology, and communications consulting for all areas of government agencies. Our clients now have the expertise of more than 120 of the country's leading public -sector consultants. We know that our combined capabilities and resources will provide added value to our clients, and we're looking forward to what we can accomplish together. 2 CITY OF PEARLAND THE CITY at RAFTELIS/TNCG e Right Fit RESOURCES & EXPERTISE This project will require the resources necessary to effectively staff the project and the skillsets to complete all of the required components. With more than 120 consultants, Raftelis/TNCG has the largest public utility management and financial consulting practice in the nation. Our depth of resources will allow us to provide the City with the technical expertise necessary to meet your objectives. In addition to having many of the industry's leading management and financial consultants, we also have experts in key related areas, like stakeholder engagement and data analytics, to provide additional insights as needed. STAKRIOUNFIR (N6A+ EMENT (?t SUPPOL2 i' Proactive stakeholder engagement and communication results in an informed, supportive workforce and community. You need the buy -in of customers, employees, and other stakeholders as you adopt new approaches and begin new initiatives They want to know what's in it for them. How you collaborate and communicate with them is critical. Raftelis/TNCG can bring an array of effective approaches to engage these groups. We can help build communication pathways and form new relationships that will improve your organization. Also, our deliverables don't just sit on shelves they're living, working documents that effectively help you communicate your message to stakeholders. HISTORY OF SIMILAR SUCCESSES An extensive track record of past similar work will help to avoid potential pitfalls and provide the know-how to bring it across the finish line. Our extensive experience will allow us to provide innovative and insightful recommendations to the City. Our expertise lies in strengthening public -sector organizations. 1 We're consulting specialists rather than generalists, focusing our strengths to do a highly effective job for a specific group of clients. RECOMMENDATIONS THAT ARE ADOPTED Our actionable recommendations are developed based on priority, cost benefit, and ease of implementation. We suggest methods for implementation, with consideration for change management practices and operating environment limitations (e.g., unions, budgets, service levels, etc.). We then work with clients to manage the implementation of these recommendations and to track progress towards making them a reality. RAFTELIS 27 • years serving the utility industry Our tell!!! includes consultants focused on utility finance/ organization/technology Rattells has p ro videdJina ncial/organizational assistance for that serve more than +water/wastewater/stormwater utilities of the 25% U.S. population including the agencies serving 33 of the nation's 50 largest cities In the past year alone, we worked on 600+ projects for imiutilities gle states m in 4 EXPERIENCE CITY OF PEARLAND • Expericncc RAFTELIS/TNCG HAS THE MOST EXPERIENCED UTILITY FINANCIAL ANL) MANAGEM `l1 CONSULTING PRACTICES IN THE NATION. Our staff has assisted more than 1,000 utilities across the U.S., including some of the largest organizations in the nation. In the past year alone, Raftelis/TNCG worked on more than 600 financial/organizational/technology consulting projects for over 400 local government agencies in 40 states, the District of Columbia, and Canada. 4. • t" •t• • • •• a lits• 11" •,• • • THIS MAP AND THE MATRIX ON THE FOLLOWING PAGES.SHOW SOME OF THE UTILITY CLIENTS THAT WE HAVE ASSISTED. Raftelis/TNCG has provided financial/ organizational/technology assistance to utilities serving more than 2SO4, of the U.S. population •• • • • • • • • • :• • • • • fie $: ••3ri i1 in. , •• s• . ••11 • � • + ti Sitfit t •• • • • • • • • • • . ' • %•• • • .• ••• 1 • •• RAFTELIS n 7 This matrix shows a brief sample of some of the utilities throughout the U.S. and Canada that Raftelis staff has assisted and the services performed for these utilities. Client AL Birmingham Water Works Board AR Central Arkansas Water AR Little Rock Wastewater Utility AZ Phoenix, City of AZ Pima County AZ Tucson Water CA Alameda County Water District CA Anaheim, City of CA Central Contra Costa Sanitation District CA East Bay Municipal Utility District CA Long Beach, City of CA Los Angeles, City of CA Metropolitan Water District of Southern California CA San Diego, City of CA San Juan Capistrano, City of CA Santa Cruz, City of CA Thousand Oaks, City of CA Ventura, City of CO Boulder, City of CO Denver Wastewater Management Division CO Denver Water CO Greeley, City of CO Metro Wastewater Reclamation District CT Groton, City of DC DC Water DE Wilmington, City of FL Emerald Coast Utilities Authority FL Florida Keys Aqueduct Authority FL Pompano Beach, City of FL St. Johns County GA Augusta, City of GA Columbus Water Works GA Paulding County HI Honolulu ENV, City and County of IL Bloomington, City of IL City of Naperville KS Topeka, City of KS Wichita, City of KY Hardin County Water District #1 LA New Orleans, Sewerage & Water Board of MA Boston Water & Sewer Commission MA Northampton, City of MD Baltimore, City of ME Portland Water District MI Detroit Water and Sewerage Department MI Flint, City of MI Saginaw, City of ssuance Support N 0 Finance Economic & Financial Evaluations cn c Planning & Mode Rate, Charge, & Fee Studies CLIC U C C O ra C 0 o o O 03 C N O C n3 zO N ID Q �O Oohs Organization Program Planning & Support 4a m a a E C a c o En roc as di En O C C C r., c : >- 11:_ .mm meC +E C Jo N Ca. .oi. m U aa) � E 0 �o L O 4-+ ro U T. -- v) v) cQS % Co- U Technology c a) a O Business Process Deve y, r0 +, O Ec o rn;3 ra c N r6 = 4 E N ro D co Software Solutions Client MO Metropolitan St. Louis Sewer District MS Jackson, City of N C Charlotte Water N C Durham, City of N C Fayetteville, City of N C Raleigh, City of N H Concord, City of N J Brick Township Municipal Utilities Authority N J Jersey City Municipal Utilities Authority N V Henderson, City of NY New York City Water Board O H Montgomery County Environmental Services O H Northeast Ohio Regional Sewer District O K Chickasha, City of O K Stillwater Utilities Authority O R Portland Bureau of Water, City of PA Capital Region Water PA Philadelphia Water Department PA Pittsburgh Water and Sewer Authority RI Newport, City of RI Providence Water Supply Board SC Greenville Water SC Mount Pleasant Waterworks TN Johnson City, City of TN Metro Water Services of Nashville and Davidson County TX Abilene, City of TX Austin, City of TX Copperas Cove, City of TX . Dallas, City of TX El Paso Water Utilities TX North Texas Municipal Water District TX Round Rock, City of TX San Angelo, City of TX San Antonio Water System TX San Jacinto River Authority TX San Marcos, City of UT Salt Lake City VA Newport News Department of Public Utilities, City of VA Richmond Department of Public Utilities VA Suffolk, City of VT Burlington, City of WA Tacoma, City of WI Milwaukee Metropolitan Sewerage District WI Milwaukee Water Works WV Charleston Sanitary Board Can Calgary, City of P R Puerto Rico Aqueduct and Sewer Authority ++ t C• O �,vc4_, • E (0 ) a EN C O O ?= >,> 0 0 + . 0.8.7 Ez E .O O1 T. 4 C O 2 -13,1-1 p c m Qa` va Debt Issuance Support Finance Economic & Financial Evaluations Financial Planning & Modeling Rate, Charge, & Fee Studies Organization al c uo C a1 cm E OU N N yl UN C1O D-4-1 CN NY WNOOrn mE mO mE:.. o N : E , EN c CD ala O v O v 2O v m ina Oa5 a.ou Program Planning & Support c E G1 01 O c mo c—. W u N 'C 15 .c E s • O to 4-1 (n05 Strategic Planning CITY OF PEARLAND Y Q of O mE a_ O E c 0.0 0 C O m U Technology Business Process Development Software Solutions RAFTELIS • Below, we have provided descriptions of projects that we have worked on that are similar in scope to the City's project. We have included references for each of these clients and urge you to contact them to better understand our capabilities and the quality of service that we provide. City of Cedar Park TEXAS Reference: Cherie Hernandez, Utility Billing Manager 450 Cypress Creek Road, Cedar Park, TX 78613 P: 512.401.5310 / E: cherie.hernandez@cedarparktexas.gov The City of Cedar Park's Utility Billing Department (the Department) engaged Raftelis to perforin a business process review of the department's meter -to -cash business processes, policies, and procedures. The department recently upgraded to a new billing software and has struggled to align and integrate the policies and procedures that govern much of the meter -to -cash process: the day to day work it takes to read meters, apply consumption and charges to customer accounts, create customer bills, and manage the connection and disconnection process due to non-payment. Initial review of the department demonstrated that current operations are lean, however informal customer service policies and business processes that have not been integrated into the billing system are creating errors and extra work for department employees and also impacting the customer experience. Raftelis is working with the department to streamline its processes to elimi- nate errors and waste within the department's business processes and enhance its customer service policies to ensure repeatable and equitable customer service. City of Burlington VERMONT Reference: Megan Moir, Water Resources Division Head 235 Penny Lane, Burlington, VT 05401 P: 802.863.4501 / E: mmoir@burlingtonvt.gov The City of Burlington Water Resources Department (City) engaged Raftelis to develop a comprehensive revenue assurance program to address meter to -cash issues. The focus of the study was to identify opportunities for improvement. The Raftelis Team leveraged our proven Engage, Assess, Compare and Enhance methodology. During the Engage phase the Raft- elis team engaged the City and its workforce to understand its approach to revenue collections, its standard operating procedures (SOPs), and its .organizational structure and workflows. This first step was imperative so that Raftelis could thoroughly understand the ways things were done and identify areas for improvement. We then assessed Water Resources' data, business practices, and per- formance to identify opportunities for improvement. This phase involved activities such as comparing produced bills with those generated from raw meter data, performing cross checks of work activities, and error testing datasets. We then compared existing practices and metrics againstpeers and industry best practices, which allowed us to generate a prioritized list of opportunities to reduce errors and improve quality assurance/quality control within the meter -to -cash cycle. The study resulted in a number of key findings and recommenda- tions specific to: Organizational Structure — Raftelis found that staffing levels are appropriate for reading meters and responding to customer service requests. However, recommendations we made to assign an additional FTE to the metering functions because of a plan to initiate a more aggressive asset management approach of testing and replacing meters on a more regular basis. Other recommendations regarding the organizational structure included: 1. Create a new FTE for the Customer Service Group and formal- ize a part-time position. 2. Consider adding a Field Services FTE to assist with meter replacement and testing, cross connection control, and other currently neglected activities. 3. Move two (2) meter services FTEs from Field Services to Cus- tomer Service, so that everyone touching the meter -to -cash cycle reports to a single manager. Raftelis documented a series of other recommendations in the areas of meter inspection documentation, meter installation and replacement, and revenue assurance processes. These opportu- nities for improvement included were formulated and designed to enhance the performance of Water Resources and suggested changes to business processes, SOPs, and overall revenue assur- ance processes. 8 CITY OF PEARLAND Greene County Sanitary Engineering OHIO Reference: Jason Tincu, Director 667 Dayton Xenia Rd, Xenia, OH 45385 P: 937.673.7563 / E: jtincu@co.greene.oh.us In January 2019, the Greene County Sanitary Engineering department engaged Raftelis to perform a Meter -to -Cash Cycle Assessment and Improvement study. The Greene County Sanitary Engineering department (the department) manages the County's water and wastewater system oper- ations and provides service to approximately 17,000 water customers and 23,000 wastewater customers. A recent failed implementation of a new billing software system created various process and systems integrations issues resulting in significant meter -read errors, concerns around meter read and billing file imports, overall data and process reliability concerns, account management and payment inaccuracies, and ultimately an under -realization of revenues. Additionally, to identify root causes for the myriad meter -to -cash cycle issues and develop more lean and efficient processes, the department desired a compre- hensive evaluation of its meter read and billing practices and policies. In support of the department's goals, Raftelis has performed business process and root cause analyses, evaluated and improved systems integrations between the meter read and billing software systems. Raftelis has developed and pro- vided initial recommendations to achieve additional process, staffing, and policy improvements. With Raftelis' support, Greene County Sanitary Engineering is well on its way to improving process quality and ensuring the department accurately realizes appropriate levels of revenue. ti PROJECT TEAM c.) ProjcctTcam WE HAVE DEVELOPED A TEAM OF CONSULTANTS WHO SPECIALIZE IN THE SPECIFIC ELEMENTS THAT WILL BE CRITICAL TO TINE SUCCESS OF THE CITY'S PROJECT. CITY OF PEARLAND PROJECT MANAGER Seth Garrison LEAD CONSULTANT Joshua Rauch PROJECT SUPPORT Kelsey Engelking Our team includes senior -level professionals* to provide experienced project leadership with support from talented consultant staff. Most members of our project team began their careers in local government and have a deep understanding of municipal utility finances and processes. Here, we have included an organizational chart showing the structure of our project team. On the following pages, we have included resumes for each of our team members as well as a description of their role on the project. ENGAGEMENT DIRECTOR Michelle Ferguson PROJECT ADVISOR Angie Flores TECHNOLOGY LEAD Chris McPhee *All Raftelis employees have completed and passed background checks. 1 - ENGAGEMENT DIRECTOR Senior Manager - Organizational Assessment 11 I Michelle will be responsible for overall project accountability and will be available to provide quality assurance and control, industry perspective, and insights into the project. Michelle has nearly 25 years of management experience with and for local governments across the country. As organizational assessment practice leader for The Novak Consulting Group, Michelle spearheaded the work of nearly 200 local government reviews in some of the foremost governments across the country. Michelle has completed detailed organizational reviews of entire jurisdictions and recommended improvements to the structure, staffing, and processes within departments of all sizes. Specific department reviews have included development review, parks and recreation, public works, human services, human resources, capital budgeting, and finance. As a Lean certified professional, Michelle excels at helping local governments continuously improve and rely on data to make informed choices about services to the public. She is skilled in project management, process improvement strategies, performance measurement, consent building, and public process design. Additionally, she has provided customized training in the development and use of performance measures to assist numerous organizations continuously improve service delivery. CITY OF PEARLAND Professional History The Novak Consulting Group: Organizational Assessment Practice Leader (2009-2020) Management Partners: Senior Management Advisor (2005-2009) Arlington County, Virginia: Assistant County Manager (2002-2005) City of Overland Park, Kansas: Assistant City Manager (1996-2002) Education Master of Public Administration - University of Kansas (1998) Bachelor of Arts in Political Science - Loyola University, Chicago (1996) Certifications Lean Certified Professional Memberships International City/County Management Association (ICMA) Engaging Local Government Leaders (ELGL) Michelle is also a skilled facilitator, able to bring diverse groups of people together to articulate shared visions and priorities. She has led strategic planning engagements at the community, organizational, and department levels, and she has facilitated numerous staff and governing body retreats. Michelle began her consulting career in 2005 following ten years of direct experience in local government management, which included serving as assistant county manager in Arlington County, Virginia. During her tenure with Arlington County, Michelle oversaw the daily management and implementation of the County's capital program. She also led the organization -wide performance measurement initiatsive establishing their Balanced Scorecard. Before Arlington County, Michelle served as assistant city manager in Overland Park, Kansas. Michelle earned a bachelor's degree in political science from Loyola University -Chicago and a master's degree in public administration from the University of Kansas. She is a member of the International City/County Management Association. She also served as the president of the Metropolitan Association of Local Government Assistants in Washington, D. C, and has presented at state and national conferences on topics such as strategic planning, effective governing bodies, and council -staff relations. RAFTELIS 11 (c71 r-vn-11 Le) r,c1_ (ia_ii-aii-31C-11 C.) I: IL PROJECT MANAGER Senior Manager Seth will manage the day-to-day aspects of the project and ensure it is within budget and stays on schedule. He will be responsible for overall project success and will direct the work of the project team. li,�il ila Seth has 25 years of experience leading, consulting with, and regulating utilities and public agencies of all sizes, both public and private. He combines over 15 years of hands-on experience as the former General Manager of a regional utility and as a board member of two water and wastewater utilities, with an additional 15 years of consulting experience advising several of the largest and best-known utilities in the U.S., the U.S. Agency for International Development (USAID), and several foreign governments on management, organizational development, operations and maintenance practices, and strategy. Seth has extensive knowledge of performance management techniques, advanced operations and maintenance practices, and change management frameworks. Seth has a history of seeking challenging assignments where he can apply his extensive public sector experience and multi -disciplinary education in management, economics, and engineering to complex problems. He began his career as a regulator, leading implementation of the complex and enormously expensive Surface Water Treatment Rule as part of the Safe Drinking Water Act amendment of 1986. He became the General Manager of a failing utility that was teetering on the edge of financial insolvency. He turned the organization around and into an award-winning organization. Seth has worked internationally, helping the governments of Afghanistan, Jordan, Guam, Mozambique, and the U.S. implement management practices and environmental policy at the national level, while simultaneously assisting various development agencies with the implementation of more than $500 million in infrastructure and programmatic spending. In addition, he has assisted well-known utility organizations in the U.S. like Pittsburgh Water and Sewer Authority, Metro Water Services (Nashville), Boston Water and Sewer Commission, New York City DEP, Denver Water, Philadelphia Water, North Texas Municipal Water District, and PRASA (Puerto Rico) solve complex management and infrastructure strategic challenges. Professional History Raftelis: Senior Manager (2016 -present) Portland Water District: Board of Trustees - Administration & Finance Committee Chair (2014 - present) Scarborough Sanitary District: Board of Trustees Member (2013-2016) Woodard & Curran, Inc.: Vice President/Utility Management Practice Leader (2012-2016) CDM Smith, Inc.: Senior Management Consultant (2004-2012) t; Bath Water District: General Manger / Superintendent (1995-2004) State of Maine: Drinking Water Program: Surface Water Treatment Coordinator (1993-1995) Education Master of Public Policy & Management - University of Maine (2010) n Masters Certificate in Performance Management - University of Maine (2009) Masters Certificate in Non -Profit (Public Sector) Management - University of Maine (2008) Bachelor of Science in Engineering (Minor Economics) - Rensselaer Polytechnic Institute (1993) Certifications Certified Lean Six Sigma Master Black Belt BAMI-I (CTAM) Certification in Infrastructure Asset Management (Indiana University) Class IV Water System Operator (lapsed) Conflict Resolution Program - Harvard Business School Professional Memberships 0 AWWA: Chair of Strategic Management Practices Committee & Member of the Benchmarking Committee WEF. Utility Management Committee New England Water Environment Association: Utility Management Committee New England Water Works Association Maine Water Utilities Association: Past Board of Directors Member 1?_ 0 - r� 1 T PROJECT ADVISOR Senior Manager 11',;((11,1:1 Angie will serve as a subject matter expert for this project. Based on her current experience with the City of Pearland, she will assist the team with current and future state validation activities, and will provide perspective on the impacts of proposed recommendations for improvement, paying specific attention to financial impacts. pnoyup,E3 Angie has worked in the water and wastewater utility industry for more than 25 years. Over this time, she has completed various cost of service and rate studies, financial planning models, and impact fee studies for cities such as San Marcos, Abilene, Corpus Christi, San Angelo, Round Rock, and Georgetown. Prior to beginning her work as a consultant in 2013, Angie worked for the Lower Colorado River Authority (LCRA) for 12 years where she was responsible for developing rate studies and financial planning models and participating in the business plan process for 32 water and wastewater utilities. LCRA is responsible for managing the Highland Lakes system in Central Texas and a major wholesale electric provider. Before LCRA, Angie worked at the Texas Water Development Board as a financial analyst. The Texas Water Development Board is a financial resource for political subdivisions of the State of Texas. KEY PROJECT EXPERIENCES CITY OF PEARLAND P rofessional History Raftelis Senior Manager (2020 - present); Manager (2018-2019); Senior Consultant (2016-2017) HDR Engineering, Inc.: Rates & Finance Lead (2013-2016) Lower Colorado River Authority: Senior Financial Analyst & Rates Supervisor (2001-2013) o Texas Water Development Board: Senior Financial Analyst (1992- 2001) Education Bachelor of Arts in Government - The University of Texas, Austin (1991) P rofessional Memberships <, AWWA Government Finance Officers Association of Texas City of Pearland (TX) Raftelis has worked with the City of Pearland (City) for the past three years. Initially, Raftelis completed a rate study and financial planning model for the City for water and wastewater rates. Over the past several years, Raftelis has provided assistance to the City during its annual update of the model. Through this assistance, Raftelis has developed additional features to the financial planning model developed three years ago. These features provide further assistance to the City by helping them meet their needs. PE; k) lit (L,a 0J11 ;1 • City of Missoula (MT) — Acquisition Analysis • City of Corpus Christi (TX) — EPA Financial Capability Analysis • City of Pueblo (CO) — EPA Financial Capability Analysis • City of Liberty Hill (TX) — Water and Wastewater Rate Study (Retail and Wholesale) • City of San Marcos (TX) — Economic Development Analysis • City of Midland (TX) — Reclaimed Water Rate Study PRESENTATIONS • "Sharing Our Resources - How Abilene Priced Its Newest Service," Texas Water 2018 DEPOSITIONS/TESTIMONY • SOAH Docket No. 582-08-2863, TCEQ Docket No. 2008-0093-UCR, "Appeal of Retail Water and Wastewater Rates of the Lower Colorado River Authority RAFTELIS Chris McPhee: TECHNOLOGY LEAD Director of Data Services/Senior Manager Chris will assist with the technology evaluation of the billing system. i kH� t" -i ii Chris has 12 years of experience in the fields of application development and data analysis in support of water, wastewater, stormwater, and solid waste projects. As a data analyst and application developer, he has experience including financial modeling, impervious area digitization and quantification, stormwater utility financial analysis, relational database development, Oracle and SQL Server programming, and desktop/web/mobile application development. His qualifications include specialized training in ESRI ArcGIS analysis and tool development, Microsoft .Net programming in the C# and VB.Net languages, web application programming in the ASP.Net framework, and mobile application development for the iOS (iPhone) and Windows Phone platforms. He is well versed in the entire lifecycle of stormwater utility development including feasibility studies, implementation, customer service, data maintenance, and process improvement. He is also familiar with water, wastewater, and solid waste financial modeling including cost -of -service studies, rate structure design, affordability and impact analyses, and billing system best management practices. Professional History Raftelis: Director of Data Services/Senior Manager (2019 - present); Director of Data Services (2014-2018); Senior Consultant (2013); Consultant (2012) AMEC Earth & Environmental, Inc.: Application Developer (2008-2011) Education Master of Forestry in Forest Resource Management - Duke University (2008) Master of Science in Geoscience - University of Arizona (2006) Bachelor of Arts in Environmental Studies - Yale University (2004) Certifications GIS Certificate: NC (2008) City of Birmingham (AL) - Billing data management for financial model City of Chandler (AZ) - Billing data management for financial model City of Detroit (MI) - Billing data management for financial model Florida Keys Aqueduct Authority - Billing data management (Cogsdale) City of Gulfport (FL) - Billing data management for financial model (Incode) City of Hartsville (SC) - Billing data management for financial model County of Indian River (FL) - Billing data management for financial model City of Manor (TX) - Billing data management for fmancial model (Incode) City of Nashville (TN) - Billing data management for financial model City of Newport News (VA) - Billing data management for fmancial model (SAP) City of Patterson (NJ) - Billing data management for financial model City of Portland (OR) - Billing data management for financial model City of Round Rock (TX) - Billing data management for financial model City of Saginaw (MI) - Billing data management for financial model (BS&A) City of Salt Lake (UT) - Billing data management for financial model City of Santa Cruz (CA) - Billing data management for desalinization model City of Santa Rosa (NM) - Billing data management for financial model (Incode) City of Sheridan (WY) - Billing data management for financial model (Inhance) City of St. Louis (MO) - Billing data management for financial model City of Stillwater (OK) - Billing data management for financial model City of Wichita (KS) - Billing data management for financial model (Ventyx Advantage) iCITY OF PEARLAND (0)541_:Itint,?1 j LEAD CONSULTANT Senior Consultant Joshua will conduct staff and stakeholder interviews, develop recommendations, and prepare deliverables for the project. PROFILE Joshua brings extensive experience in local government and management consulting to his projects and relationships with clients. While in direct local government service with the Cities of Mission, Kansas, and Springfield, Ohio, Joshua developed a broad skill set in community development, code enforcement, neighborhood assistance programming, contract management, economic development, and special projects. As a management consultant, Joshua has leveraged these experiences and his involvement with professional associations to inform the analysis and insights he provides to clients. Joshua has participated in over 70 organizational assessments for towns, cities, and counties across the United States. These engagements have involved a wide array of individual department assessments and process improvement analyses, 18 organization -wide reviews spanning multiple departments, and six workforce survey efforts (averaging nearly 1,000 responses each). Joshua is familiar with processing large datasets and assisted the City of Aurora, Colorado, with a police staffing analysis that involved over 1.3 million directed call for service (DCFS) records. Joshua balances this quantitative expertise with a keen appreciation for qualitative considerations that inform sound recommendations. Joshua also leverages his consulting expertise to explore unique questions and challenges faced by clients. He worked with the City of Boulder, Colorado, to evaluate the cost-effectiveness of contracting for custodial services and developed a financial model that calculated the estimated impact of living wage requirements on City employees and contractors. Joshua also created a chargeback model for the Information Technology Department at the City of Greensboro, North Carolina, designed to more effectively allocate costs among customer departments, and provided implementation training to staff. Professional History The Novak Consulting Group: Associate (2014-2020) City of Springfield, Ohio: Deputy Economic Development Director (2013-2014) City of Mission, Kansas: Neighborhood Services Coordinator (2008-2013) Education Master of Public Administration - University of Kansas (2010) Bachelor of Arts in Political Science - University of Dayton (2008) Professional Memberships International City/County Management Association (ICMA) 0 Engaging Local Government Leaders (ELGL) Ohio City/County Management Association (OCMA) More recently, Joshua has played an instrumental role in a multi-year engagement with The Woodlands Township, Texas, a special purpose district studying the impacts of incorporating as a municipality. While working with The Woodlands, Joshua has examined the impact of incorporation on critical functions, including public works and law enforcement, conducted in-depth comparative analyses using benchmark communities, developed a financial model to illustrate incorporation impacts, and calculated the estimated tax impacts of incorporation. Joshua earned a bachelor's degree from the University of Dayton and a master's degree in public administration from the University of Kansas. RAFTELIS 1 �s 4.01_e(0_1(11.1!.; Ur_�l ►. _�?(C) PROJECT SUPPORT Associate Consultant Kelsey will conduct analyses and research and prepare deliverables for the project. 111\tr))j1111[ Kelsey has a background in physics, chemistry, and sustainability as well as experience providing residential energy efficiency consulting. She also has experience working with local governments and the public. Kelsey joined Raftelis in 2019 as an associate consultant in management services. FEY PROJECT MCP [ f \.9C Brownsville Public Utilities Board (TX) In early 2019, Raftelis was retained by the Brownsville Public Utility Board (BPUB) to assist their organization with the development of an updated five-year strategic plan. BPUB is a large publicly owned electric, water, and wastewater service provider to over 180,000 customers in their service area. This engagement is a multi-year, designed to engage both the employees and a large number of the BPUB's key stakeholders and customers. Major activities include leadership interviews, online stakeholder surveys, employee focus groups, and Board workshops. Raftelis is also tasked with developing and delivering an online strategy management system that will allow the organization to continuously measure, monitor, and report organizational progress and performance as it implements its new strategic plan. Kelsey has been involved in building the dashboards for the online strategy management system and developing plans and tactics for the first year of implementation. P rofessional History Raftelis: Associate Consultant (2019 -present) CLEAResult Associate Program Manager (2015-2019); Energy Advisor (2013-2015) Education Bachelor of Arts in Physics, U niversity of Colorado at Boulder 0 Bachelor of Arts in Chemistry, U niversity of Colorado at Boulder certifications Building Analyst Professional Certification, Building Performance Institute (BPI) U ndergraduate Energy Certificate, Renewable & Sustainable Energy Institute 0 Certifications AWWA Risk & Resiliency Certification (2020) P rofessional Memberships AWWA District of Columbia Department of Public Works (DC) Raftelis was engaged by the District of Columbia in May 2018 to perform strategic planning development and workforce assessment services for the Department of Public Works, which consists of three administrations: Solid Waste Management, Parking Enforcement, and Fleet Services. One of the main drivers to engage Raftelis for these services was to prepare for imminent succession planning needs and help develop an organizational roadmap for the future. As part of the strategic planning process, Raftelis interviewed numerous DC -area stakeholder organizations and incorporated the feedback into the goals and strategies of the new strategic business plan. For the workforce planning portion of the engagement, Raftelis leveraged the new strategic business plan and assessed the organization's current workforce development needs. Kelsey assisted in the creation of strategic planning and implementation deliverables and was involved in workforce position description benchmarking. 16 PROJECT APPROACH Project Approach COMPARE Our proposed approach for performing the Utility Billing Process and System Review for the City of Pearland is thoughtful, straightforward, and proven. The foundation of our approach is built on Raftelis' Engage, Assess, Compare, and Enhance methodology. The pro- cess leverages Lean and Six Sigma process improvement techniques, proven change management methodologies, and our unequaled industry experience gained from years of working with over 1,000 public utilities across the State of Texas and the U.S. Our first step will be to engage the City and the Utility Billing and Collections Departments, as well as other relevant parties within City government, and develop an understanding of the City's: meter -to -cash lifecy- cle and its associated practices, objectives, and workflows; standard operating procedures (SOPs); risk and quality control practices; and performance management approaches This will be accomplished through staff interviews and data gathering. We will focus our attention on the meter management (meter reading, monitoring, and accuracy), bill processing activities, and collections phases of the meter -to -cash lifecycle. We will also review customer account management practices, such as communications with custom- ers and account activities, as well as the technology related to the meter -to -cash lifecycle. It is imperative that we thor- oughly understand the ways things are done now — the current state — so we can iden- tify areas for improvement and work with the City to collabora- tively design an appropriate and effective future, desired state. Since our team is composed of former utility and local gov- ernment managers, who help develop the standards and benchmarks in the industry, we are very familiar with best practices, technology, and benchmarks associated with the entire meter -to -cash life- cycle. This means we have no learning curve when it comes to understanding utility billing and its support activities. This will allow us to focus on how Pearland is performing activ- ities and how they may differ from others in the industry. Our next step will be to assess the current meter -to -cash business practices to identify opportunities for improve- ment. This will involve activities such as assessing staff training, examining work- loads, performing cross-checks of SOPs, and reviewing busi- ness processes for alignment, duplication, waste, and areas of focus for streamlining. We will leverage process mapping concepts and similar efficien- cy -finding techniques from Lean as part of this step. Where applicable, we will reference industry benchmarks and best practices. A review of sample billing and metering data will be required to get a full picture of how the Departments' functions. Raftelis has often found that random samples can miss exceptions and unique cases that often result in billing errors. Raftelis will recommend a data review plan for meter data, billing data, and select customer accounts that we will work collaboratively with the City to execute. It will provide answers about the suitability of key meter -to -cash processes and the accuracy of billing. We will compare practices, policies, structures, and workflows against appropriate industry -best practices, which CITY OF PEARLAND will allow us to identify gaps between the current and future (desired state) and generate a prioritized list of opportunities to improve efficiency and effec- tiveness. This will most likely include process changes but could also include technology and organizational structure changes, training, and other enrichment activities. We will document the associated benefits of, and required level of effort to, implement recom- mendations and perform an informal risk analysis to iden- tify areas needing additional controls. Finally, we will work with the Departments to develop a roadmap for enhancing the Departments' critical business processes and decision pathways for the meter -to -cash lifecycle. !ASK 1 Begin Engagement We value City staff's time and understand that utility activi- ties must continue during the project, so before taking up valuable staff time with inter- views, site visits, and practice/ process investigations, we will become familiar with the City's RAFTELIS 17 meter -to -cash activities by reviewing relevant background information. This will help us prepare for a kick-off meeting and be more focused during our site visits. Raftelis will prepare an initial data request with prioritized information to help us gain an overview. The list will not be exhaustive but instead will be designed to get an impression of the current situation using readily availa- ble information. Raftelis will hold a kick-off meeting where we will work with the City to clarify project objectives, identify any special circumstances or challenges that may be present, outline key dates and timeframes, and commission the core project team consisting of key staff and Raftelis. As part of the project kick-off meeting visit and following the kick- off, we will meet with key stakeholders from the City and the Departments. During these meetings, we will eval- uate and document the key processes and subprocesses surrounding the meter -to - cash lifecycle. This will be an initial data -gathering exercise with the main objective of ori- enting the project team to the workflows, technology, and staff within the Departments. We will build heavily on this foundation and the knowledge gained during this task as the project proceeds. This will include standard and ongoing project manage- ment and quality assurance activities. Our project team is collaborative, and we will com- municate frequently with the core project team. Additionally, if requested by the City, we will provide regular updates, with specific attention paid to progress toward key project milestones and deliverables. Performance Management Cycle Our process addresses the mechanics of process improvement as well as change management. «\e e e 0 0 PERFORM & MEASURE 00 Ongoing quality assurance activities will also include the submission of delivera- bles. Comment and feedback received from the City during these project tollgates will be used to validate and refine the process maps we develop. SITE VISITS: O One on-site visit to kick off the project and gather data through stakeholder interviews. Note that these meetings may be conducted remotely, depending on city state, and national COVID-19 guidance. CURRENT STATE What do we do now? How do we do it? Goals Strategic Plans Performance Targets DESIRED STATE Where we want to be DELIVERABLES: Initial data request, kick- off meeting materials TASK2 Audit Utility Billing Processes and Assess Customer Response Timeframes • Our project team will doc- ument and review key meter -to -cash processes and subprocesses. We will develop process maps utilizing Swimlane Diagrams for certain essential meter -to -cash func- tions to illustrate the roles and Cho /290 �~9 GAP ASSESSMENT e�� responsibilities of the parties involved. The process maps will have clear beginning and end points and highlight the following: • Shared workflows and dependencies across divisions • Key ' decision points and triggers that initiate subprocesses or critical pathways • Bottlenecks and "loop - backs" that may indicate inefficiencies, redundan- cies, or waste The evaluation will identify process stakeholders, bound- aries, and responsible parties, 18 CITY OF PEARLAND Utility Meter -to -Cash Cycle Our process addresses the mechanics of the meter -to -cash work -flow, as well as the organizational support structures that impact the effectiveness and efficiency of meter -to -cash execution. CUSTOMER BILLINGS AND PAYMENTS as well as potential operational risk "hot spots" to indicate where controls are needed. Where subprocesses are critical and require refinement, we will create subprocess maps that expand to greater detail work- flows that may occur deeper inside workgroups but that are critical to customer service and billing excellence. The process will also highlight resources, technologies, or other tools that are critical to operational success. For example, more robust exception reports may be needed after initial meter reading data is collected. CUSTOMER METER AND BILLING SYSTEMS INTEGRATIONS Raftelis will also review organizational structures and practices to assess the Departments' capacity to suc- cessfully support meter -to -cash activities. Work will include examining: the effectiveness of the organization's processes, the adequacy and efficiency of staffing, and the value of inter- nal communication. Raftelis will review job descriptions and the organization of appli- cable staff. Questions to be examined as part of the review include the following: • Are staffing levels and skills adequate to meet the needs of the organization? METER READS • Are functions organized efficiently in the right organizational structures? • What quality assurance/ quality control (QA/QC) practices are followed to ensure stated practices are followed? • What new practices or programs, such as AMI, are likely to impact organ- izational performance and staffing needs? How can these impacts best be managed? • Are position descriptions up-to-date and accurate for the functions required? Using the information gath- ered through the Assessment Phase, Raftelis will compare Pearland's organizational structure and performance to industry benchmarks using data from the American Water Works Association (AWWA), the Water Environment Federation (WEF), and the National Association for Clean Water Agencies (NACWA). Additionally, based on its work with hundreds of utility and public works organizations around the country, Raftelis has access to a significant amount of financial and opera- tional data from which to draw; RAFTELIS `I9 the project team has a great deal of experience assessing organizational performance. All members have provided operational and management support to dozens of munici- pal organizations and utilities around the country and will use that experience to provide additional input during this aspect of the review. SITE VISITS: O None (Raftelis will communicate with the designated City project manager and key Department stakeholders to gain additional insight) DELIVERABLES: Draft current state process maps and staffing review TASK 3 Evaluate Current Operations and Procedures Raftelis will hold a workshop to validate our understanding of the current meter -to -cash organization and its processes. This workshop will involve key City and Departments stakeholders to ensure our understanding of processes, subprocesses, and staffing is accurate and valid. Feedback from this validation will be used to finalize the current state understanding. Prior to the validation workshop, Raftelis will recommend future state processes that incorporate suggested improvements. These recommendations could include, but are not limited to, the following: • Changes in current prac- tices, policies, or procedures • Staffing realignments and training • Changes in the way tech- nology is used or additional technologies/equipment • Additional quality control and risk management steps In most cases, changes in practices, policies, or proce- dures are the main drivers for success. Rarely, significant staffing or technology changes are needed to accomplish objectives. In our experience, optimizing the meter -to - cash lifecycle has much more to do with processes than technology. During the workshop, but after current state observations are validated, Raftelis will per- form initial validation of the proposed future state recom- mendations. The draft future state recommendations will encompass elements identified through analyses performed in prior activities. We will test the recommendations and recep- tivity to them, and based on feedback, assess their feasibility and potential for implementa- tion within the Departments. Raftelis prides itself on involv- ing staff collaboratively in developing solutions. We have found that this is the best way to achieve buy -in and get them to embrace changes. SITE VISITS: • One site visit to validate the current state and test the initial vision for the future state. Note that these meetings may be conducted remotely, depending on city, state, and national COVID-19 guidance. DELIVERABLES: Finalized current state process maps, draft future state process maps with initial potential recommendations for improvement TASK 4 Review Processes, Procedures, Controls, and Metrics Using important feedback gathered during the initial future state validation per- formed, Raftelis will revise the future state workflows and finalize .key recommen- dations that the Departments can implement to achieve the desired future state for the meter -to -cash lifecycle. Recommendations will be prioritized based on feasibility, the likelihood of sustained suc- cess, and overall impact to the Departments. Raftelis will hold a validation workshop where we will perform a final review of the future state workflows and present the prioritized list of recommendations. During this workshop, Raftelis will test assumptions to ensure the prioritization of recommended improvements is valid, meets the short-term and long-term goals of the City, and accu- rately contemplates the impacts to the Departments. The future state will emphasize reliability, provide pathways for accurate record keeping, and identify process areas that are a natural fit for automation and improvement. SITE VISITS: • One site visit to validate future state process maps and finalize recommendations. Note that these meetings may be conducted remotely, depending on city, state, and national COVID-19 guidance. DELIVERABLES: O Finalized future state process maps and a draft report on recommendations t Prepare Project Deliverables Upon final validation of the future state and prioritiza- tion of recommendations, Raftelis will develop a final report that clearly outlines recommendations to reach the Departments' desired future state. The report will lay out required changes, outline process responsibilities and interdependencies, and pro- vide a risk control evaluation that calls out potential risk control solutions. Raftelis will make a site visit for a final presentation to the City that memorializes the project, summarizes project findings regarding the cur- rent and future states, and outlines recommendations for improvement so that the Departments can achieve their future state vision for success. SITE VISITS: • One site visit to present report findings and final recommendations DELIVERABLES: • All project materials, documents, and deliverables; summary report of findings and recommendations 20 SCHEDULE Schedule CITY OF PEARLAND Raftelis will complete the scope of services within the timeframe shown in the schedule below. The proposed schedule assumes a notice -to -proceed by the beginning of July 2020 and that Raftelis will receive the needed data in a timely manner and be able to schedule meetings as necessary. Project completion is estimated for November 2020. Activity 1 - 1.1 1.2 1.3 1.4 Activity 2 - 2.1 2.2 2.3 2.4 2.5 Activity 3 - Begin Engagement Conduct project kick-off meeting with City Meet with Utility Billing Staff to describe project approach Request and review background information Finalize project schedule Audit Utility Billing Processes Extract random sample of residential and business accounts from each of the last four billing cycles Determine whether utility bills were processed accurately and timely Review adequacy and accuracy of meter reading process Assess the City's ability to recover amounts owed Develop preliminary observations and recommendations Assess Customer Response Timeframes 3.1 Review and identify causes of customer complaints 3.2 Review complaint investigation and disposition process and assess adequacy 3.3 Assess consistency and equitable treatment of customers 3.4 3.5 Activity 4 - 4.1 4.2 4.3 4.4 4.5 Evaluate effectiveness of customer communication practices and methods Develop preliminary observations and recommendations Evaluate Current Operations and Procedures Conduct an operational audit of the Utility Billing function Assess the meter reading, leak detection services, billing, collections, and customer service functions Identify SWOC Review and assess job descriptions, staffing level optimization, overtime, span of control, etc. Evaluate current staffing levels and positions and identify staffing levels necessary to maintain desired levels of services 4.6 Develop metrics to identify future operational and financial performance 4.7 Develop preliminary observations and recommendations 4.8 Review preliminary obs and recs with the City Activity 5 - Review Process, Procedures, Controls, and Metrics Review and evaluate the meter reading, billing, and collection process for 5.1 efficiency and effectiveness (develop as -is process maps) Identify opportunities to improve operations to provide for monthly billing of 5.2 utility accounts 5.3 Review and evaluate the process for identifying and resolving expectations 5.4 Assess frequency of meter reading and associated processes 5.5 Evaluate assignment of meter readers to routes Determine if proper internal controls are in place to comply with City policies 5.6 and procedures 5.7 Review and evaluate customer payment plan, policies, and procedures 5.8 Develop preliminary observations and recommendations Activity 6 - Assess the Adequacy of Technology, Equipment, and Automated Systems Assess the adequacy of equipment utilized by staff involved in the meter reading, billing, and collections processes and their data integration and/or 6.1 interfaces 6.2 Identify industry trends and best practices 6.3 Identify and recommend technology enhancements 6.4 Share best practices for AMI transition Activity 7 - Prepare Project Deliverables 7.1 Prepare analysis and recommendations (report) 7.2 Provide review of job descriptions and staffing 7.3 Detail audit findings for meter readings, billings, and collections 7.4 Operational analysis and recommendations 7.5 Customer service evaluation and recommendations 7.6 Presentation to internal decision -makers and executive leadership 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 c � 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 COST The following table provides a breakdown of the estimated level of effort required for each project team member and their hourly billing rates, along with our lump sum total cost. 21 Ala Team Member diL ilk Hourly Rate Estimated Hours Michelle Ferguson, Engagement Director Seth Garrison, Project Manager Angie Flores, Project Advisor Chris McPhee, Lead Consultant Joshua Rauch, Lead Consultant Kelsey Engelking, Project Support $275 $245 $245 $215 $185 $155 30 100 25 28 128 108 The following table provides a breakdown of the estimated cost for each task in our project approach, along with our lump sum total cost. Scope Activity Estimated Hours Activity 1 Activity 2 Begin Engagement Audit Utility Billing Processes and Assess Customer Response Timeframes Activity 3 Evaluate Current Operations and Procedures Activity 4 Review Process, Procedures, Controls, and Metrics Activity 5 Prepare Project Deliverables Lump Sum Total Cost $7,785 $16,334 $37,986 $17,954 $17,941 $98,000 REQUEST FOR PROPOSAL UTILITY BILLING PROCESS & SYSTEM REVIEW For CITY OF PEARLAND • RFP #0520-37 DUE DATE: 06/11/2020 @ 11:00 a.m. CST CITY OF PEARLAND, TEXAS 3193 Liberty Drive Pearland, TX 77581 (281) 652-1790 https://pearland.ionwave.net • Exhibit C RFP #0520-37 Introduction The City of Pearland is accepting proposals from Offerors to provide a comprehensive assessment of utility billing processes/systems and collection services for the City in full accordance with the specifications, terms and conditions contained in this request for proposal. Proposals shall be received no later than 11:00 a.m., CST, Thursday, June 11, 2020. Proposals received after the deadline stated herein will not be considered for the award of the contract, and shall be considered void and unacceptable. At the time stated above, proposals will be publicly unsealed and names of offerors read aloud in City Hall, 3519 Liberty Drive, Pearland, TX. Proposal forms, specifications and all necessary information may be obtained from the following website, upon supplier registration approval (if not already registered): https://pearland.ionwave.net. Prospective respondents should download required documents as found in the "Attachments" tab on website referenced above, complete and submit as part of the proposal as stated herein. It is the City of Pearland's preference that all response documents be submitted electronically via the website above. Respondent should upload required, completed documents as attachments under the "Response Attachments" tab and respond to the "Line Items" tab on the https://pearland.ionwave.net website. NOTE: Facsimile and/or email transmittals shall not be accepted as valid Proposals. The City of Pearland is aware and appreciative of the time and effort you expend in preparing and submitting proposals to the City. Please notify the Purchasing Office via email to ebids@peariandtx.gov of any proposal requirements that are causing you difficulty in responding to our proposal. We want to make the process as convenient as possible so that all responsible Vendors can compete for the City's business. QUESTIONS REGARDING PROPOSAL SPECIFICATIONS: All questions regarding this proposal should be submitted via email to ebids@pearlandtx.gov. Questions and answers will be distributed by addendum via the e -bid website https://pearland.ionwave.net. Questions should be submitted in writing no later than end of day Thursday, May 28tH. 2 RFP #0520-37 SECTION I - GENERAL SPECIFICATIONS 1.0 INTENTION OF SPECIFICATIONS The City of Pearland is accepting proposals from Offerors to provide a comprehensive review of the City's utility billing processes and collection services in full accordance with the specifications, terms and conditions contained in this request for proposal. It is the intent of the City to award the contract to one vendor; however, the City of Pearland reserves the right to accept or reject any and all proposals, to accept any proposal deemed advantageous and to waive irregularity in the proposals. By submitting a proposal, the Offeror acknowledges and will adhere to all specifications as stated within this request for proposal document. NO PERSON has the authority to verbally alter these specifications. Any changes to specifications will be posted on the City of Pearland s E -bidding website via Addendum. 2.0 TERM OF CONTRACT It is contemplated that this award shall be a lump sum contract supported by a man-hour estimate and billing rates to be submitted along with the proposal contract, with a duration of approximately three months or as negotiated. 3.0 PROPOSAL PREPARATION 3.1. GENERAL INSTRUCTIONS: Offerors should carefully examine all terms, conditions, specifications and related documents Should an Offeror find discrepancies in or omissions from the specifications or related documents or should there be doubt as to their meaning, the City of Pearland Purchasing Office should be notified immediately for clarification prior to submitting the Proposal In the event of any conflict between the terms and conditions of these requirements and the specifications the specifications shall govern. In the event of any conflict of interpretation of any part of this overall document the City of Pearland s interpretation shall govern. 3.2. DOCUMENTATION: Offeror shall provide with this Proposal response all documentation required herein; failure to provide this information may result in rejection of Proposal. 3.3. DESCRIPTIONS: It is the intent of the City to be descriptive, not restrictive, and to establish a desired quality level of service or to meet a pre -established standard of quality Offerors should respond to listed items. The City of Pearland shall act as a sole judge in determining quality and acceptability of services offered. 3.4. REFERENCES: City of Pearland requests Offeror to supply, with this Proposal, a list of three (3) references where your firm has supplied like products or services. Use provided 'Vendor References" form located in the Attachments tab. 3.5. PRICING: Offerors are instructed to propose the total unit price on the item(s) specified. 3 RFP #0520-37 In case of errors in extension, UNIT prices shall govern. Prices for all goods and/or services shall be firm for a minimum of 60 days beyond the opening date to allow ample time for City Council approval of the purchase. Prices shall be all inclusive. No price changes, additions or subsequent qualifications will be honored after the proposal opening. Additional charges not shown on the proposal will not be honored. All prices must be in ink. 3.6. SALES TAX: City of Pearland is exempt by law from payment of Texas Sales Tax and Federal Excise Tax, and will provide its tax exemption certificate to successful Offeror(s). Do not include tax in Proposal. 3.7. ADDENDA: Any interpretations, corrections or changes to this RFP and specifications will be made by addenda. Sole issuing authority of addenda shall be vested in the City of Pearland Purchasing Office. Addenda will be provided via City e -bidding system, located at https://pearland.ionwave.net. Offerors shall acknowledge receipt of any and all addenda in the Attributes tab. It is the responsibility of any Offeror to avail themselves to any addenda prior to proposal closing. Any addenda to the RFP specifications issued during the period between issuance of the RFP and receipt of proposals are to be considered covered in the proposal and in awarding a contract,- addenda will become a part thereof. 4.0 RECEIPT OF PROPOSAL 4.1. LATE PROPOSALS: Proposals received in the City after the submission deadline will be considered void and unacceptable. City of Pearland is not responsible for lateness or non- delivery of mail, carrier, etc. The date/time stamp in the City Secretary's office shall be the official time of receipt. 4.2. ALTERING OF PROPOSALS: Proposals cannot be altered or amended after submission deadline. Any alterations or erasures made before opening time must be initialed by the signer of the Proposal, guaranteeing authenticity. 4.3. WITHDRAWAL OF PROPOSAL: Any proposal may be withdrawn prior to the scheduling time for opening via the e -bid system website before the exact time set for proposal opening by the Offeror. No proposals may be withdrawn for a period of sixty (60) calendar days after the opening of proposals. 4.4. REJECTION OF PROPOSALS: The City may choose to reject all Proposals and not award any contract. 5.0 AWARD Criteria for award of the proposal shall include the following. These factors, among others identified herein, will be used to evaluate your capability as an Offeror and in selecting the proposal that provides the best value for the City. 4 RFP #0520-37 5.1. Price; 5.2. Reputation of the Offeror and of the Offeror's goods or services; 5.3. Quality of the Offeror's goods or services; 5.4. Extent to which the goods or services meet the City's needs; 5.5. Offeror's past relationship with the City; 5.6. The impact on the ability of the City to comply with laws and rules relating to contracting with historically underutilized businesses (HUB) and non-profit organizations employing persons with disabilities; 5.7. Total long-term cost to the City to acquire the Offeror's goods or services; 5.8. Any relevant criteria specifically listed in the request for bids or proposals. The City of Pearland reserves the right to accept or reject any proposal or combination of proposals deemed advantageous to the City. 6.0 SINGLE PROPOSAL REPSONSE If only one proposal is received in response to the Invitation to Bid, a detailed cost proposal may be requested of the single Contractor. A cost/price analysis and evaluation and/or audit may be performed of the cost proposal in order to determine if the price is fair and reasonable. 7.0 TERMS AND CONDITIONS 7.1. PROPOSALS MUST COMPLY with all state, county and local laws concerning this type of good or service. 7.2. REMEDIES: The successful Offeror and City of Pearland agree that both parties have all rights duties and remedies available as stated in the Uniform Commercial Code. 7.3. OBLIGATION OF FUNDING: Funds for payment have been provided through the City of Pearland budget approved by the City Council for this fiscal year only. State of Texas statutes prohibit the obligation and expenditure of public funds beyond the fiscal year for which a budget has been approved. Therefore, anticipated orders or other obligations that may arise past the end of the current City's fiscal year shall be subject to budget approval by City Council. The City s fiscal year is October 1st through September 30th 7.4. APPROPRIATION OF FUNDS: The City of Pearland has established an appropriation (allocation) of funds for this service, if in the event the appropriated (allocated) funds are exhausted, the Contractor's only remedy shall be suspension or termination of its performance under the contract and shall have no other remedy in law or in equity against the City and no right to damages of any kind The City may reduce the funds allocated and the services required at its discretion. The City shall notify Contractor in 5 RFP 110520-37 writing of any reduction. The de -obligation of funds does not require any formal amendment but shall be evidenced by a revised budget approved by City Council. 7.5. EQUAL OPPORTUNITY EMPLOYER: The successful Offeror shall warrant and agree that he/she is an Equal Opportunity Employer. Should complaints of any form of discrimination, either in dispensation of the service or within company hiring policies be substantiated, this contract may be terminated immediately. 7.6. CONFLICT OF INTEREST: No public official shall have interest in this contract accept in accordance with Vernon's Texas Codes Annotated, Local Government Code Title 5, Subtitle C, Chapter 171. Complete the Conflict of Interest Questionnaire (CIO) located in the Attachments tab and turn in with bid. 7.7. ETHICS: The Offeror shall not offer or accept gifts or anything of value or enter into any business arrangement with any employee, official or agent of City of Pearland. More than o ne Proposal on any one contract from a firm or individual under different names shall be grounds for rejection of all Proposals in which the firm or individual has an interest One or all Proposals will be rejected if there is any reason to believe that collusion exists between Offerors. 7.8. 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. 7.9. HOUSE BILL 89 VERIFICATION: The Offeror shall not Boycott Israel during the term of the resultant contract, meaning Offeror will not refuse to deal with terminate business activities with, or otherwise take any action that is intended to penalize, inflict e conomic harm on, or limit commercial relations specifically with Israel or with person o r entity doing business in Israel or in an Israeli -controlled territory. 7.10. City may, at any time, request a meeting to discuss performance, service, etc. 7.11. Offeror shall not subcontract any tasks associated with this contract without prior written consent of the City. 7.12. A contract will not be awarded to any party that has been debarred, suspended, e xcluded or ineligible for participation in federal assistance programs. In the event an awarded Contractor becomes debarred, suspended excluded or ineligible for participation in federal assistance programs after award of contract, the awarded contract may be cancelled without notice. 8.0 PURCHASE ORDER 8.1. City of Pearland shall generate a purchase order to the successful Offeror. 6 RFP #0520-37 8.2. The City will only be obligated for the dollar amount shown on the Purchase Order. 8.3. The Purchase Order number must appear on all invoices, packing lists and all related correspondence. 8.4. City of Pearland will not be responsible for any orders placed and/or delivered without a valid Purchase order number. 9.0 INVOICES 9.1. The City shall pay in accordance with the Prompt Payment Act in the total amount of the monthly statement. 9.2. Offerors shall submit an original invoice indicating the purchase order number. Any invoice, which cannot be verified by the contract price and/or is otherwise incorrect, will be returned to the Offeror for correction. 9.3. Invoices must be itemized. 9.4. Payment basis shall be net thirty (30) days from receipt of invoice. 9.5. Invoices may be submitted via email to accountspayable@pearlandtx.gov or may be mailed to the following address for payment: City of Pearland Accounts Payable P.O. Box 2719 Pearland, TX 77588 10.0 USAGE REPORTS Awarded Offeror may be requested to provide a complete and accurate usage history report for all products/services furnished hereunder, based on trailing twelve months. 11.0 NEW MERCHANDISE All product furnished as a result of this proposal request must be new, or recycled if applicable. The City will neither purchase nor accepts proposals or shipments of goods classified as seconds, irregulars or any other designation other than new. 12.0 QUALITY CONTROL Goods or services supplied under this contract shall be subject to approval as to quality and must conform to the highest standards of practice. Goods or services found defective or not meeting specifications shall be replaced at the Offeror's expense within a reasonable period of time. Payment for defective goods or goods failing to meet specifications is not due until 30 days after satisfactory replacement has been made. 7 RFP #0520-37 13.0 WARRANTY Successful Offeror shall warrant that all items or services shall conform to the proposed specifications and all warranties as stated in the Uniform Commercial Code and be free from all defects in material, workmanship and title. 14.0 INDEMNIFICATION 14.1. The Offeror shall indemnify, defend, and hold the City, its officers, agents, and employees, harmless from any claim, loss, damage, suit and liability of every kind, including all expenses of litigation, court costs, and attorneys fees for injury to or death of any person, or for damage to any property, arising from or caused by any act or omission of Offeror, its officers, employees, agents, or subcontractors, in performing its obligations u nder this contract. 14.2. The Offeror assumes full responsibility for the work to be performed hereunder and hereby releases, relinquishes, and discharges the City of Pearland, its officers, agents, and e mployees 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 and any loss of or damage to any property that is caused by, alleged to be caused by, arising out of, or in connection with the Offeror s work to be performed hereunder. This release shall apply regardless of whether said claims, demands, and causes of action are covered in whole or in part by insurance and regardless of whether such injury, death, loss, or damage was caused in whole or in part by the negligence of the City, any other party released hereunder, the Offeror, or any third party. 14.3. Provision to be applied if indemnity is determined void: If the foregoing indemnity provision is found void for any reason, and only in that case, then the parties agree that if any claim or suit for damages of any nature arising out of or o ccasioned by Contractor's breach of any of the terms or provisions of this Contract or by any negligent act or omission of Contractor, its officers, agents, associates, employees or subcontractors, then Contractor will be obligated to pay for the legal defense of the City, its officers, agents and employees against such claim or suit (including the costs and e xpenses associated with that defense). It is additionally expressly agreed that any payment due as a result of any successful claim or lawsuit shall be paid by the party or parties found liable in the proportion of liability found against that party after the matter has been finally litigated or, alternatively, in the proportion agreed upon by the parties if the matter is settled. This provision does not waive any immunity or defense available to e ither party under Texas law. The provisions of this Paragraph are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 15.0 PATENTS/COPYRIGHTS The awarded Offeror agrees to protect City of Pearland from claims involving infringements of patents and/or copyrights 8 RFP #0520-37 16.0 INSURANCE REQUIREMENTS An original, certified copy of an insurance certificate must be submitted within ten (10) days of request along with an Additional Insured Endorsement on the most recent version of a Cg20 form The awarded Offeror will be required to maintain, at all times during performance of the contract the insurance detailed on the "Insurance Requirements" form, which is attached under the Attachments" tab in the e -bidding system. Failure to provide this document may result in disqualification of proposal. Insurance required of the awarded Offeror, or any other insurance of the Offeror shall be considered primary, and list the City of Pearland as an additional insured with wavier of subrogation. The Offeror, at the discretion of the CITY, shall provide information regarding the amount of claims payments or reserves chargeable to the aggregate amount of the Offeror's liability coverage(s). 17.0 INTERLOCAL PARTICIPATION 17.1. The City may, from time to time, enter into Inter -local Cooperative Purchasing Agreements with other governmental entities (hereafter collectively referred to as "Entity" or "Entities") to enhance the City's purchasing power. At the City's sole discretion and option, City may inform other Entities that they may acquire items listed in this proposal. Such acquisition(s) shall be at the prices stated herein, and shall be subject to Offeror's acceptance. 17.2. In no event shall City be considered a dealer, re -marketer, agent or other representative of awarded Offeror or Entity. Further, City shall not be considered and is not an agent; partner or representative of the Entity making purchases hereunder, and shall not be obligated or liable for any such order. 17.3. Entity purchase orders shall be submitted to awarded Offeror by the Entity. 17.4. Awarded Offeror authorizes City's use of Offeror's name, trademarks and Offeror provided materials in City's presentations and promotions regarding the availability of use of this contract. The City makes no representation or guarantee as to any minimum amount being purchased by City or Entities, or whether Entity will purchase utilizing City's contract 17.5. City will not be liable or responsible for any obligations, including but not limited to payment, and for any item ordered by an Entity other than City. 18.0 EQUAL OPPORTUNITY EMPLOYER The awarded Offeror shall warrant and agree that he/she is an Equal Opportunity Employer. Should complaints of any form of discrimination, either in dispensation of the service, or within company hiring policies be substantiated, this contract may be terminated immediately. 9 RFP #0520-37 19.0 WORKS COMPENSATION The successful Offeror (as required by State of Texas Workers Compensations law) shall carry in full force workers compensation policy(ies) for all employees,including but not limited to full- time, part-time, and emergency employees .employed by the successful Offeror. Current insurance certificates, certifying that such policies as specified above are in full force, shall be presented to the City of Pearland by the successful Offeror. By entering into this contract or providing or causing to be provided a certificate of coverage, the successful Offeror is representing to the governmental entity that all employees of the Offeror who will provide services will be covered by workers' compensation coverage for the duration of the contract, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self - insured, with the commission's division of self-insurance regulation. Providing false or misleading information may subject the successful Offeror to administrative penalties, criminal penalties, or other civil actions. The Offerors failure to comply with any of these provisions is a breach of contract by the Offeror which entitles the governmental entity to declare the contract void if the Offeror does not remedy the breach within ten days after receipt of notice of breach from the governmental entity. 20.0 CONDITIONS FOR TERMINATION The City, besides all other rights or remedies it may have, shall have the right to terminate this agreement immediately upon written notice from the City Manager or his designee of its election to do so, if the awarded Offeror fails to perform the service or breaches this agreement in any way, including the following: 20.1. Fails to pay insurance, liens, claims, or other charges. 20.2. Fails to pay any payments due the City State or Federal Government from the successful Offeror or its principals, including but not limited to payments identified in this agreement or any taxes, fees, assessments, or liens. 20.3. Becomes insolvent and/or files for protection under bankruptcy laws. 20.4. Violates any provision of the agreement. 20.5. Fails to respond within the prescribed time, including weekends and holidays. 20.6. Fails to make adequate arrangements for an emergency call. 20.7. Provides substandard work, or work the City deems to be otherwise unacceptable. 20.8. The City may terminate the contract at any time by giving written notice to the awarded Offeror of such termination and specifying the effective date thereof, at least fifteen (15) calendar days before the effective date of such termination. 20.8.1. In that event, all finished or unfinished services, reports, materials prepared or 10 RFP #0520-37 furnished by the awarded Offeror under the contract shall, at the City's option, become its property. 20.8.2. if the award is terminated by the City as provided herein, the awarded Offeror will be paid an amount as of the time the notice is given by the City which bears the same ratio to the total compensation as the services actually performed or material furnished bear to the total services/materials the awarded Offeror covered by the award, less payments of compensation previously made 20.9. Additionally, the City reserves the right to terminate the contract without cause upon written notice 30 days prior to the date of termination. Such termination is in addition to and not in lieu of any other remedies that City of Pearland may have in law or equity. Offeror, in submitting this Proposal, agrees that City of Pearland shall not be liable to prosecution for damages in the event that the City declares the Offeror in default. 21.0 NOTICE Any notice provided by this Proposal or required by law to be given to the successful Offeror by City of Pearland shall be deemed to have been given and received on the next business day after such written notice has been deposited in the U. S. mail in Pearland, Texas, by Registered or Certified Mail with sufficient postage affixed thereto, addressed to the successful Offeror at the address so provided; provided this shall not prevent the giving of actual notice in any other manner. 22.0 PROPOSAL INFORMATION 22.1. If quantities are listed, the quantities should be considered as approximate and based on the best available information. The vendor may not limit an order or shipment of an order with a "Minimum Dollar Amount or Quantity Amount." In reference to new product/service proposals, quantity usage may be stated as one or more. 22.2. When "Unit Prices" and "Extended Prices" are listed in the proposal and there is an error in the mathematical calculations, the unit price shall govern for evaluation purposes. NOTE: City reserves the right to add or delete from the contract when in the best interest of City of Pearland. 23.0 ADDITIONAL ITEMS/UPGRADES The City may require additional items of similar nature not specifically listed in the contract or wish to purchase an item upgraded from that proposed by the Offeror In such event, the Offeror shall provide the City with a price for the new or upgraded item based upon a procedure or formula, which is the same or very similar to that used in establishing the prices as contained in the awarded Offerors list. If the price offered is not acceptable to the City and the matter cannot be resolved to the satisfaction of the City, the City reserves the right to procure the new or upgraded items from other Offerors or to cancel the contract upon giving thirty (30) days written notice to the Offeror. 11 RFP #0520-37 24.0 ASSIGNMENT The successful Offeror shall not sell, assign, transfer or convey this contract, in whole or in part, without the prior written consent of City of Pearland. 25.0 LAW GOVERNING AND VENUE The law of the State of Texas shall govern this contract and no lawsuit shall be prosecuted on this Contract except in a court of competent jurisdiction located in Brazoria County, Texas. 26.0 COMPANY OWNERSHIP/MANAGEMENT Should there be a change in the awarded Offerors ownership or management, the contract may be canceled unless a mutual agreement is reached with the new owner or manager to continue the contract with its present provisions and prices. This contract is nontransferable by either party without the written consent of the other party. 27.0 INDEPENDENT CONTRACTOR The parties contend that awarded Offeror, in performing the services specified herein, shall act as an independent contractor and shall have control of its work and the manner in which it is performed. It shall be free to contract for similar services to be performed for other employers while it is under contract with the City. Successful Offeror is not to be considered an agent or employee of the City and is not entitled to participate in any pension, medical or dental plan, or any other benefit provided by the City to its employees. 28.0 TAXES AND WAGES Successful Offeror shall pay or cause to be paid, without cost or expense to City of Pearland, all Social Security, Unemployment and Federal Income Withholding Taxes of all employees and all such employees shall be paid wages and benefits required by Federal and/or State Law. 29.0 COMMUNICATION Prospective Offerors shall communicate only with the Purchasing Division staff identified herein during the entire RFP process (from this solicitation to award). The City shall not be responsible for any verbal or non-verbal communication between a potential Offeror and any other employees of the City; and such action may be cause for rejection of the subject Offeror's proposal. Only written requirements and qualifications, and addenda as issued by the City of Pearland Purchasing Division will be considered official communication. 30.0 PUBLIC RECORD Responses to bid requests and requests for proposals are public record. By signing and submitting a response Responder hereby acknowledges the following: 30.1. That the Response and subsequent documents submitted to the City are subject to the Texas Public Information Act (PIA); 12 RFP #0520-37 30.2. That it is the Responder's obligation to specifically identify information it contends to be confidential or proprietary and accepts that the City may in its sole discretion deem a Response as non-compliant; and 30.3. That Responder grants a royalty -free, non -revocable, world-wide, perpetual license to reproduce, any copyrighted portions of the Response and subsequent documents to comply with LBB reporting requirements, PIA disclosures, or any other reporting requirements mandated by law or statute. 31.0 DISCLOSURE At the public opening, there will be no disclosure of contents to competing Offerors, and all Proposals will be kept confidential during the negotiation process. Except for trade secrets and confidential information which the Offeror identifies as proprietary, all Proposals will be open for public inspection after the contract award. 32.0 EXCEPTION TO PROPOSAL The Offerors will list on a separate sheet of paper any exceptions to the conditions of the proposal. This sheet will be labeled, "Exceptions to proposal conditions', and will be attached to the proposal If no exceptions are stated it will be understood that all general and specific conditions will be complied with, without exception. 33.0 FORCE MAJEURE 33.1. If by reason of Force Majeure either party shall be rendered unable, wholly or in part, to carry out its responsibilities under this contract by any occurrence by reason of Force Majeure, then the party unable to carry out its responsibility shall give the other party n otice and full particulars of such Force Majeure in writing within a reasonable time after the occurrence of the event, and such notice shall suspend the party's responsibility for the continuance of the Forced Majeure claimed, but for no longer period. 33.2. Force Majeure means acts of God, floods, hurricanes, tropical storms, tornadoes, e arthquakes, or other natural disasters, acts of public enemy, acts of terrorism, sovereign conduct, riots, civil commotion, strikes or lockouts, and other causes that are n ot occasioned by either Party's conduct which by the exercise of due diligence the party is unable to overcome and which substantially interferes with operations. 34.0 CERTIFICATE OF INTERESTED PARTIES All contracts and contract amendments, extensions or renewals executed by City Council will require the completion of Form 1295 "Certificate of Interested Parties" pursuant to Texas Local Government Code Chapter 2252.908. Only the successful Offeror of this RFP will submit a Certificate of Interested Parties form. Form must be completed by Offeror at time of signed contract submittal. 13 RFP #0520-37 All responding Offerors may access a video from the Texas Ethics Commission which explains the process on how to submit Form 1295. The video link is available on the City of Pearland Purchasing Department website at http://pearlandtx.gov/purchasing. 35.0 LODGING The awarded Offeror and professional service firms mobilizing personnel to perform the services described herein are strongly encouraged to utilize lodging within the City of Pearland. For information on booking a hotel in Pearland, please refer to: http://visitpearland.com/where-to- stay-in-pearland/. For further assistance, you may contact the Pearland Convention and Visitors Bureau at 713.436.5595.3 36.0 ADDITIONAL INFORMATION If any information is needed concerning specifications, please contact: City of Pearland Julie Blackmore E-mail: ebids@pearlandtx.gov 14 RFP #0520-37 SECTION II TECHNICAL SPECIFICATIONS The City of Pearland seeks an experienced consultant to work with City Council and Staff to access and improve its approach to Utility Billing Operations (Including the Meter Services Division) with an initial focus and thorough review of the billing process, systems, Standard Operating Procedures (SOP's), organizational structure, staffing levels and training protocols. The City's desire is to contract with a Consultant who will perform a comprehensive review of the Utility Billings and Collections Department processes, procedures and systems in order to improve its meter reading and collections process The work will be comprehensive in nature and will support achieving the overall goal of process improvement and public accountability. The following requirements and specifications shall be in addition to the other requirements contained herein and shall supersede the other requirements where applicable. SILENCE OF SPECIFICATIONS: The apparent silence of these specifications as to any detail or to the apparent omission from it of a detailed description concerning any point, shall be regarded as meaning that only the best commercial practices are to prevail. All interpretations of these specifications shall be made on the basis of this statement. 1.0 GENERAL INFORMATION 1.1 Utility Billing and collections departments manages over 35,000 accounts and with the assistance of the Meter Services Division reads approximately 40,000 meters on a monthly basis, in four cycles per month. Subsequently over 35 000 utility bills are processd on a monthly basis. 1.2 During the summer months of 2018 the City went to a consistent 28 days on average meter read cycle; however, the billing cycle remained on a monthly billing cycle. As a result of this change, over an extended period, the City's billings have fallen behind the meter read cycle by approximately 60 days. Due to the delay in billing combined with system and human errors that have occurred the billing for residence has fallen behind. 1.3 The City uses New World Logos ERP system for billing. 1.4 The City currently utilizes AMR meters and will be moving to the AMI system in the near future 1.5 The City is NOT contemplating purchasing new software. 1.6 The successful Offeror is expected to perform all work in a competent and professional manner. Any damage to public or private property during the prosecution of work, either direct or indirect, resulting from the successful Offeror or their employees must be repaired fully and completely at the cost to the successful Offeror, including work, materials, and any litigation fees that may be incurred to recover the cost of such damages not repaired or not repaired in a workmanlike manner. 1.7 Successful Offeror shall maintain a clean and tidy work area in performance of the service 15 RFP 110520-37 at the time the service is provided. 1.8 Offeror shall take necessary steps to complete work with minimal interference of City staff. 1.9 Background and criminal history checks must be provided for each employee working on City of Pearland property, and ensure that no employee assigned to work at a City facility has been convicted of: 1.9.1 A felony or any offense that designates the individual as a sex offender; 1.9.2 Found to have any conviction relating to theft, identity fraud, or vandalism; 1.9.3 Background checks shall be performed on the State level; Provide written confirmation in proposal document that all employees subject to working on City property have had background checks performed and meet the requested requirements. 1.10 Employees assigned to work at a City facility should be assigned on a permanent bases for the duration of the project (i.e. not different workers every week). 2.0 SCOPE OF SERVICES 2.1 Audit Utility Billing and Collections processes and assess whether utility customers are being properly billed for utility services. 2.1.1 Verify that usage and billing calculations are accurate for at least 500 random residential and 25 random business accounts in each of the four billing cycles, within the last six months. 2.1.2 Determine whether utility bills are processed accurately and timely. 2.1.3 Review adequacy and accuracy of meter reading process. 2.1.4 Assess the City's ability to recover amounts owed. 2.2 Assess whether customers are responded to within reasonable timeframes. 2.2.1 Review potential causes of customer complaints 2.2.2 Review adequacy of complaint investigations and that dispositions achieved were supported and reasonable. 2.2.3 Assess consistency and equitable treatment of customers. 2.2.4 Evaluate effectiveness of customer communication practices and methods. 2.2.5 Provide recommendations to improve customer service levels. 2.3 Evaluate current operations and procedures. 2.3.1 Conduct an operational audit of the utility billing function and provide recommendations for improvement. 2.3.2 Assess the meter reading, leak detection services, billing, collections and customer service functions. 2.3.3 Identify strengths, weaknesses, opportunities and challenges. 16 RFP #0520-37 2.3.4 Determine whether there are adequate job descriptions, optimized staffing levels and positions with respect to workload and overtime, appropriate span of management and supervisory oversight. 2.3.5 Evaluate current staffing levels and positions and identify staffing levels necessary to maintain desired levels of services. 2.3.6 Develop metrics by which to assess future operational and financial performance. 2.4 Review processes, procedures, controls, and performance measures for the administration and maintenance of City's utility accounts and related customer service. 2.4.1 Review and evaluate the meter reading, billing and collection processes for efficiency and effectiveness. 2.4.2 Make recommendations for improving operations to provide for monthly billing of utility accounts 2.4.3 Review and evaluate the processes for identifying and resolving exceptions. 2.4.4 Assess frequency of meter readings and associated processes. 2.4.5 Evaluate assignment of meter readers to routes. Temporary process, once wireless connections are completed, drive by readings will no longer be required due to automation of process with new water meters. 2.4.6 Determine if proper internal controls are in place to comply with City policies and procedures. 2.4.7 Review and evaluate customer payment plan policies and procedures. 2.5 Assess the adequacy of technology, equipment and automated systems to support effective and efficient operations to meet desired levels of service. 2.5.1 Assess adequacy of equipment utilized by staff involved in the meter reading, billing and collections processes and their data integration and/or interfaces 2.5.2 Identify and recommend industry trends and best practices for meter readers, customer service personnel, etc. 2.5.3 Identify and recommend any technology enhancements needed to achieve desired performance levels. 2.5.4 Provide best practice/recommended changes necessary for the transition to the AMI system 3.0 DELIVERABLES 3.1 Organizational analysis and recommendations including any additional quality control/quality assurance steps to reduce the likelihood of errors; 3.2 Review of job descriptions and staffing and recommendations; 3.3 Audit of meter readings, billings and collections; 3.4 Operational analysis and recommendations; 17 RFP #0520-37 3.5 Customer service evaluation and recommendations; 3.6 Presentation of reports to internal decision makers and executive leadership. 4.0 PROPOSAL REQUIREMENTS Offerors shall present their responses using the following guidelines. 4.1 Provide a proposal document, to include the following (Upload to "Response Attachments" tab in the e -bid system). MAXIMUM 30 PAGES. 4.1.1 underlying philosophy of the Offeror in providing the requested services; 4.1.2 statement of qualifications including resume and list of similar projects within the last three years; 4.1.3 proposed schedule for the project; 4.1.4 equipment requirements; 4.1.5 detail of fee proposal that should support pricing in Line Items tab 4.1.6 background check confirmation. 4.2 Provide pricing per the Line Items listed on the Line Items tab in the e -bid system. Any additional fees not called out in the Line Items list can be added via 'Add Notes" and should be listed in fee proposal. City of Pearland will not pay any additional charges unless specified in proposal. 4.3 Respond to questions in the Attributes tab in the e -bid system. 4.4 Required documents to be completed (located in "Attachments" tab of the e -bid system). Upload to "Response Attachments" tab in the e -bid system. 4.4.1 Insurance Requirements; 4.4.2 Local Bidder Preference Claim Form (note N/A if not applicable); 4.4.3 Non -collusion statement; 4.4.4 Conflict of Interest Questionnaire (note N/A if not applicable); 4.4.5 Contractor Questionnaire; 4.4.6 House Bill 89 Form; 4.4.7 Vendor References. 5.0 EVALUATION FACTORS Compliance with proposal requirements, qualifications, best value, delivery, pricing, and the needs of the end user department are all factors which will be considered when evaluating proposals The City reserves the right to accept or reject all or any part of any proposal, waive minor technicalities and award the contract to best serve the interest of the City. City of Pearland will use the following criteria in the selection process: 30 % Rates and Expenses; 40 % Qualifications/experience/methodology for completing requested work and thoroughness in addressing proposal requirements; 15% Schedule 18 RFP 110520-37 10% Experience List/References (preferably for projects of comparable size and scope) and past relationship with the City; 5% Compliance to proposal requirements. 6.0 SELECTION In order to secure the best value for the City, one or more of the following actions may be taken in the selection process: 6.1 Accept the highest scoring Response without changes; 6.2 Request clarifications, assurances and corrections; 6.3 Conduct discussions on Responses scoring within a competitive range and request Best and Final Offers (BAFOs); 6.4 Select the highest scoring BAFO and accept it without changes or negotiate better terms; 6.5 In an invitation to submit BAFOs, City may include any noncompliant Responses which City deems in its sole discretion are susceptible to being made acceptable. The BAFO must be in compliance with all requirements; In the case of a tie which cannot be resolved by application of one or more statutory preferences, a selection may be made that is in the best interest of the City. 7M TYPE OF CONTRACT The City contemplates award of a unit price contract resulting from this solicitation. It is a non- exclusive contract; the City may award additional contracts to additional Vendors at its discretion. 8.0 REQUIRED INFORMATION / DOCUMENTS All information and completed forms submitted by an Offeror in response to this solicitation shall become an integral part of the resultant contract. 9.0 APPROVAL OF RESULTANT CONTRACT The contract, which may result from this solicitation, is subject to approval by Pearland City Council and may be neither executed nor binding until so approved. 10.0 COSTS INCURRED BY OFFEROR The City will not be responsible, under any circumstances, for any submittal preparation costs or other costs incurred by any Offeror before the execution of a contract between the City and the successful Offeror. 19 CITY OF PEARLAND UTILITY BILLING DEPARTMENT 3519 Liberty Drives Pearland, Texas 77581 General Services Contract Amendment For: _assessment of utility billing processes/systems and collection services D ate of Issuance: 11/24/2020 Amendment No: 2 Contractor: Raftelis Financial Consultants, Inc PO#: 2020-00001787; R2020-149 Explanation for Amendment: This Amendment encompasses the following: extending the contract term from January 29, 2021 to now end July 30, 2021 and adding $5,000 to the contract amount (to be used at the City's discretion). D escription of Work 1 Extending contract through July 2021 2 3. Cost Time $ 6 months $ Days $ Days P lease attach backup documentation Cost & Time Change Summary: Cost Time Original Contract: $ 98,000 106 Days Previous Amendment(s): $ 45 Days N et increase (decrease) from this Amendment: $ 5,000 182 Days Revised Contract: $ 103,000 333 Days S ignatures. By signing below, the parties agree to the terms of this Contract: CITY OF PEARLAND: 1-20-2021 ijssistant Finance Director Date gned by: D'te: /4?/ 207/ City Manager 'Assistant City Manager Director Superintendent/Manager *Contract Signature Authority: Superintendent/Manager -$5,999 or Tess Director - $6,000 to $30,000 City Manager/Assistant City Managers - $30,001 to $50,000 City Council Resolution - $50,000+ CONTRACTOR**: title: Executive Vice President Date: 1/20/2021 ** Contractor agrees to perform change(s) included in this Contract Amendment for the price, scope and/or time indicated. The prices for changes include all costs associated with this Contract Amendment. No work shall be performed until this Amendment is executed and a changed purchase order has been issued by the City. Upon execution by all parties, the changes identified for the Contract Value and/or Contract "Time shown, are made part of the Contract, and all other provisions of the original contract shall remain in full force and effect. GSA Amendment I of 1 4/2019