REQUEST FOR PROPOSALS

Transcription

1 REQUEST FOR PROPOSALS for the City of Fort Morgan, Colorado March 19, 2014 Brent Nation Director of Utilities CITY OF FORT MORGAN P.O. BOX 100 FORT MORGAN, COLORADO (970)

2 REQUEST FOR PROPOSALS City of Fort Morgan The City of Fort Morgan is accepting proposals for for the until 4:00 p.m. (our clock) on April 7, 2014 at City Hall located at 110 Main Street, Fort Morgan, Colorado If delivered, they are to be sent to 110 Main Street, Fort Morgan, CO If mailed, the address is PO Box 100, Fort Morgan, CO Proposals must be received at City Hall prior to 4:00 p.m. (our clock) on April 7, No pre-proposal meeting will be held. All questions regarding this Request for Proposals should go to Brent Nation, Director of Utilities, in writing and can be ed to The cut-off date and time for questions is March 28, 2014 at 10:00 a.m. It is the responsibility of the Respondent to contact Brent Nation at (970) to verify receipt of questions. A copy of the RFP and associated documentation may be obtained as follows: 1. The City website at 2. City Hall located at 110 Main Street, Fort Morgan RFP Rate Study Services

3 INSTRUCTIONS FOR PROPOSAL I. GENERAL INSTRUCTIONS: All Proposals must be properly signed by an authorized representative of the company with the legal capacity to bind the company to the contractual agreement. In addition, the authorized representative s signature of the Proposal assures the company s understanding of the City s Procurement Policy. A copy of the policy is available upon request at the City Clerk s Office. Proposals may be withdrawn up to the date and time set for closing upon written, faxed or e- mailed notice to the City. Proposals may not be withdrawn for a period of sixty (60) days after the date of opening. Negligence upon part of the bidder in preparing their Proposal shall not constitute a right to withdraw a Proposal subsequent to the submittal deadline. A conditional or unqualified Proposal may be cause for rejection. Only Proposals properly received will be accepted. Each Proposal and applicable documentation as requested must be submitted in a sealed envelope, addressed to: City of Fort Morgan for the Gas Department Attn. Brent Nation And bear the name of the Proposer and their address. If Proposal is to be delivered via private courier, such as FedEx, UPS, etc., they are to be sent to: 110 Main Street, Fort Morgan, CO If Proposal is to be mailed via USPS, they are to be sent to: PO Box 100, Fort Morgan, CO The City of Fort Morgan reserves the right to reject any or all Proposals, in whole or in part, to make multiple awards, partial awards, award by types, or item by item, whichever may be most advantageous to the City of Fort Morgan. Upon selection, the City will issue a Notice of Award and a contract must be completed and signed by all parties concerned within ten days of issuance of the Notice of Award. If this date is not met, the City may elect to cancel the Notice of Award (if the delay is not the fault of the City). The City reserves the right to incorporate standard contract provisions into any contract as a result of a Proposal submitted in response to this Request for Proposal ( RFP ). This RFP is issued to serve as the basis for the selection process for Rate Study Services to be provided on an as needed basis for the City of Fort Morgan s Gas Department and System Enterprise. Instructions - Page 1 of 5

4 INSTRUCTIONS FOR PROPOSAL II. PROJECT OVERVIEW The City of Fort Morgan invites interested professional engineering and/or government accounting firms, and/or firms specializing in fee studies, to submit written proposals to provide consulting services to the City regarding comprehensive gas rates and fee studies for a period of up to three (3) years. The initial contract will be for one year with an automatic renewal for two additional one year terms subject to annual appropriations. The City of Fort Morgan owns and operates the Natural Gas Department and System Enterprise. Rate studies will require a review of various sources of revenue to determine equitability of the distribution of charges and a recommendation of rates that will generate the funds required to meet cash requirements and of which support City Council s policies. Reports will include comprehensive studies of projected revenue under existing rates, future revenue requirements, customer costs of service, and rates for gas service. The is funded entirely from gas service rates and charges. Rates and charges are subject to approval by City Council and are adjusted as needed to meet budgetary requirements. A. GENERAL: III. PROJECT SCOPE 1. The City of Fort Morgan is soliciting proposals from qualified firms to conduct comprehensive gas rates and fees studies. The objectives of the studies are to evaluate existing gas rates and fees in order to meet short and long term financial targets and policy objectives, and to ensure that operation and maintenance (O&M), capital replacements and improvements (CIP), and other direct and indirect costs are adequately funded. 2. Services will include comprehensive studies of projected revenue under existing rates, future revenue requirements, customer costs of service, and rates for services. Annual revenue requirements shall be projected taking into consideration operation and maintenance expense; and financing of proposed system improvements and normal annual additions. Projections shall be based on a study of past costs incurred in providing service and reflect anticipated changes, due both to price escalation and increased levels of service. 3. The Consultant will propose the addition or modification of fees to gain full cost recovery for services and establish fair and equitable rates to ensure revenue sufficiency, stability and sustainability. 4. The Consultant will complete all tasks and prepare a written report which shall include an executive summary, methodologies, detailed findings, various scenarios for rate structures and the modification of existing fees, recommendations for the City s Instructions - Page 2 of 5

5 INSTRUCTIONS FOR PROPOSAL consideration and action, and any impacts the recommendations would have on customers. 5. The Consultant will be requested to attend meetings with City staff as needed and give presentations to City Council to present the findings of studies and recommendations. B. NATURAL GAS DEPARTMENT AND SYSTEM ENTERPRISE The Consultant shall calculate the annual Gas Supply Charge for the Natural Gas Department and System Enterprise (hereinafter referred to as Gas Department), which is anticipated to be effective on or about October 1 st of each year, and under certain circumstances be adjusted more frequently due to extreme market volatility. It shall also assist the Gas Department in implementing the annual Gas Supply Charge, including appearing at regularly scheduled City Council meetings as requested. As part of the services provided pertaining to the Gas Supply Charge, the Consultant will prepare a report documenting the calculation of the rates approved by City Council. The Consultant will also provide other services related to the calculation and implementation of Gas Supply Charge as requested by the City. In conjunction with the calculation of the annual Gas Supply Charge or at other times as requested by the City, the Consultant will assist the City in determining if changes in the Metering & Billing Charge and the Delivery Charge are warranted. The Consultant will conduct a preliminary evaluation of the need for modifying such charges. After consultation with the City, if it is decided such charges need to be revised, the Consultant will calculate proposed new charges, as requested, and document the calculation of the revised charges in a written report to the City. The Consultant will also assist the City in implementing such changes as may be approved by City Council. As requested by the City, the Consultant may provide other consulting services to the Gas Department. Such services may include the following: 1. Assist in determining the cost of gas for the annual budget. 2. Address issues relating to the utility billing system. 3. Assist in ensuring the gas department accounting records accurately reflect transactions associated with the cost of gas. 4. Review, analyze, and evaluate issues associated with the City s gas supply contracts with the National Public Gas Agency. 5. Review, analyze, and evaluate issues associated with the City s gas transportation and storage contracts with Colorado Interstate Gas Company, LLC (Kinder Morgan) 6. Review, analyze, and evaluate the special contract service the City provides to Dairy Farmers of America as it relates to billing, deferred gas costs, and cash out. 7. Address tariff issues that may arise from time to time. 8. Address other issues that may arise from time to time, as requested by the City. Instructions - Page 3 of 5

6 INSTRUCTIONS FOR PROPOSAL IV. CONFLICT OF INTEREST AND GOOD FAITH In preparation of the Proposal, Respondents must declare among their team, any business entity or individual who is, or is associated with in any way, likely to create a conflict of interest or a perception of conflict of interest. Furthermore, by submitting a Proposal, the Respondent is declaring that its submittal is in good faith and will disclose to the best of its knowledge whether there are any circumstances whereby any member of Council or any officer or employee of the City would gain any pecuniary interest, direct or indirect and that it has not and will not participate in any collusive scheme with any entity or person in developing this RFP. If the Respondent considers that a particular relationship or association does not create a conflict of interest and will not create a perception of conflict of interest, but is concerned that the City could arrive at a different conclusion, the Respondent should fully disclose the circumstances to the City at the earliest possible date, and request that the City provide an advance interpretation as to whether the relationship or association will be likely to create a conflict of interest or a perception of conflict of interest. Failure to comply with this provision may result in disqualification of the Proposal from the RFP process or, if the City becomes aware of a breach of this provision after the detailed Proposal has been requested, disqualification from the further processes. V. CONFIDENTIALITY AND PRIVACY Information provided to a Respondent by the City, or acquired by a Respondent by way of further enquiries or through investigation, is confidential. Such information shall not be used or disclosed in any way without the prior written authorization of the City. The Respondent shall not make any statement of fact or opinion regarding any aspect of the RFP and any subsequent proposal to the media or any member of the public without the prior written authorization of the City. Respondents are advised that the City is subject to freedom of information laws, such as the Colorado Open Records Act and that the Respondent will be expected to comply with the obligations imposed upon the City. To the extent permitted, the City shall treat all submissions as confidential. However, the Respondent is advised that any information contained in any submission may be released if required by City policy or procedures, by other authorities having jurisdiction, or by law. All Proposals submitted to the City will be kept in confidence with the City administrators for the sole purposes of evaluating and developing the best possible strategic option for the City. Instructions - Page 4 of 5

7 INSTRUCTIONS FOR PROPOSAL Submitted Proposals will become the property of the City. The City will have the right to make copies of all Proposals for its internal review process and to provide such copies to its staff, legal, technical and financial advisors and representatives. All information will become and remain the property of the City; none will be returned. If the application contains any proprietary or trade secret information, said information must be indicated as such. VI. INSURANCE AND INDEMNIFICATION REQUIREMENTS The Respondent(s) and proposal(s) chosen by the City (hereinafter identified as the Contractor ) shall be required to maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance with minimum limits of One Million Dollars ($1,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by the Contractor. At all times during the term of the agreement, the Contractor shall carry, maintain, and keep in full force and effect, a policy or policies of Professional Liability Insurance with minimum limits of One Million Dollars ($1,000,000) for each occurrence. The Contractor shall agree to maintain in force at all times during the performance of work under the agreement worker s compensation insurance as required by law. The Contractor shall require each of its sub-consultants or sub-contractors to maintain insurance coverage which meets all of the requirements of the agreement. The Contractor understands and agrees that if it does not keep the aforementioned insurance in full force and effect, City may either immediately terminate the agreement or, if insurance is available at a reasonable costs, City may take out the necessary insurance and pay, at Contractor s expense, the premium thereon. Instructions - Page 5 of 5

8 SELECTION PROCESS VII. SELECTION PROCESS AND SCHEDULE The City shall be the sole and exclusive judge of quality and compliance with Proposal specifications in any of the matters pertaining to this RFP. The City reserves the right to award the contract in any manner it deems to be in the best interest of the City. All Proposal information will be evaluated according to the criteria listed herein, and the firms selected will be chosen on their apparent ability to best meet the overall expectations of the City of Fort Morgan. By submitting an RFP submission and participating in the process as outlined in this document, Respondents expressly agree that no contract of any kind is formed under, or arises from, this RFP and that no legal obligations will arise. The City will have no obligation to enter into negotiations, or to contract, with a Respondent, even though one or all of the Respondents are determined to be responsible and qualified, and the proposals are determined to be responsive. If the City proceeds to request a more detailed Proposal from Respondents, who are determined to be qualified under the RFP process, the City will have no obligation to award a Contract where: (a) One submission is received; or (b) In the judgment of the City, the interests of the City would best be served by not entering into a Contract. The City of Fort Morgan reserves the right to reject in whole or in part any or all proposals. The City reserves the right to cancel or modify this solicitation at any time. Interested parties are advised to monitor the website for any updated information released after initial distribution of this RFP. Selection Process

9 A. Proposal (RFP): PROPOSAL PROCESS The Respondent shall submit three (3) paper copies of their Proposal. All Proposals shall be limited to the following prescribed information: City of Fort Morgan 1. LETTER OF TRANSMITTAL: Clearly indicate the single contact (principal-in-charge), mailing address, address, telephone and facsimile numbers. i. Indicate unique features of the organization and the project team that makes the team uniquely suited to undertake these types of projects. ii. Signify commitment to comply with all insurance requirements. 2. KEY PERSONNEL: Identify the individuals from the firm who will be involved in projects and their responsibilities. Provide brief biographical data of the primary participant(s), resumes can be included. 3. APPROACH, ORGANIZATION AND MANAGEMENT OF THE PROJECT: i. Describe how projects will be organized, both internal by the Respondent and how coordination with the project stakeholders will be undertaken. ii. iii. Describe the Respondent s management approach and philosophy to the project. Describe how the Respondent will accomplish the work in a thorough, effective, and timely manner. Provide an estimate of how many hours it would take the Respondent to provide a comprehensive rate study for the City and a breakdown of those hours related to the Respondent s approach and management of the study. 4. PROJECT EXPERIENCE: Describe the Respondent s experience in similar projects. Provide: i. Examples of previous similar projects that involved rate study services which have similar size and work elements to those identified in this request for proposal. 5. BILLING RATES AND EXPENSES: Provide current billing rate sheet(s) and a list of possible reimbursable expenses. i. BILLING RATES: Any billing rate shall include a complete list of classifications and hourly billing rates for all of the Respondent's personnel. The hourly rate schedule shall equal payroll cost times a markup for overhead and profit. Proposal Process Page 1

10 PROPOSAL PROCESS City of Fort Morgan ii. ADDITIONAL REIMBURSABLE EXPENSES: An expense list shall be submitted for any additional or unforeseen services that may be required. The Respondent shall include the cost of travel, meals, mileage, miscellaneous printing and producing up to five (5) sets of documents for any project. B. Proposal/ RFP Selection Criteria: Submitted Proposals will be rated by City staff and the Respondents rated the highest may be invited to an interview. i. The City shall be the sole and exclusive judge of quality and compliance with Proposal specifications in any of the matters pertaining to this RFP. The City reserves the right to award the contract in any manner it deems to be in the best interest of the City. ii. All Proposal information will be evaluated according to the criteria listed herein, and the firms selected will be chosen on their apparent ability to best meet the overall expectations of the City of Fort Morgan. C. Oral Presentation/ Interview: Respondents may be invited to make an Oral Presentation at a time and place to be determined by the City. The Oral Presentation shall not exceed 40 minutes in length, followed by up to twenty minutes for questions by the Selection Committee. Each Respondent shall be represented by at least one member of their firm. Presentation skills will be evaluated. Respondents are free to prepare their own agenda for the presentation. The presentation should demonstrate the proposed approach and understanding of rate studies, as well as addressing how the Respondent will interface with the City. Each Interviewee shall be prepared to answer questions on the submitted Proposal and presentation. Proposal Process Page 2