Agenda Information Sheet
DEPARTMENT: Denton Municipal Electric
CM/ ACM: Howard Martin
Date: October 10, 2016
SUBJECT
Title
Consider recommending approval of an ordinance authorizing the City Manager to execute a professional services agreement for financial planning and rate modeling services for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (File 6229-awarded to New Gen Strategies & Solutions, LLC in an amount not-to-exceed $215,000).
Body
BACKGROUND
New Gen is a professional services organization that provides utility financial planning and rate modeling services to public power utilities across the United States. What makes New Gen's approach unique, as compared to typical Enterprise Systems (such as SAP), is that they use the individual utility's operational, financial and rate data to build complex customized excel models that can be easily customized to the specific utility's work flow and processes, rather than the utility's processes being "force-fitted" into the Enterprise System's process flow and reporting.
OPTIONS
For DME - Continue using existing 18 year old model. This model has been revised numerous times over the years and is beyond its' life. Staff is having technical as well as developmental problems with this model due to its age and size.
For Water/Wastewater - Continue using existing budget model pro forma which is beyond its' life and is experiencing technical and developmental problems.
RECOMMENDATION
Staff recommends approval of the New Gen Proposal for Financial Planning and Rate Modeling Services.
ESTIMATED SCHEDULE OF PROJECT
Implementation of modeling is estimated to take four to six months. Estimated completion of the project is spring of 2017.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
No prior action.
FISCAL INFORMATION
Requisition #130844
603924497.1365.9230 - $85,000 -Electric Financial Design & Model
630341517.1365.40100 - $65,000 -Wat...
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