AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
ACM: Bryan Langley
AGENDA DATE: October 18, 2016
SUBJECT
Title
Consider adoption of an ordinance authorizing the City Manager to execute a professional services agreement for financial planning and rate modeling services for Denton Municipal Electric and Water/Wastewater Utilities; providing for the expenditure of funds therefor; and providing an effective date (File 6229-awarded to NewGen Strategies & Solutions, LLC in an amount not-to-exceed $215,000). The Public Utilities Board recommends approval (6-0).
Body
FILE INFORMATION
This Agreement is for NewGen Strategies & Solutions, LLC (NewGen) to develop a Microsoft Excel based utility financial model based on the utility's budgeting system and accounts to support periodic updates and alignment with Cost of Service and generation planning models. The financial model will forecast revenues by customer class and expenses for five years to evaluate potential rate, debt, or capital impacts. NewGen will use each of the City's electric and water/wastewater utilities financial, sales, meter data and rates along with the current budget assumptions to build customized models. It will then compare the scenarios numerically and geographically. The electric and water/wastewater models can also be combined and analyzed as a total utility.
NewGen is a professional service firm that provides 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.
The City's existing financial planning model is 18 years old, has ...
Click here for full text