1.0 Introduction Colorado Springs Utilities ( UTILITIES ) is an enterprise of the Municipal Government of the City of Colorado Springs, Colorado ( City ) that provides electric, natural gas, water, wastewater utility services to the citizens of the City and other customers in the Pikes Peak region. UTILITIES is one of the few municipally-owned, utility companies in the nation that provides all four of these utility services. UTILITIES operates an electric generation, transmission, and distribution system; a natural gas distribution system; a water collection, treatment and distribution system; and a wastewater collection and treatment system. The UTILITIES service area includes the City, the City of Manitou Springs, and many of the areas surrounding the City. Additionally, the military installations of Fort Carson Army Base ( Fort Carson ), Peterson Air Force Base ( Peterson ) and the United States Air Force Academy ( Academy ) receive water and electric service and natural gas supply and transportation from UTILITIES, and Peterson also receives wastewater treatment service. The UTILITIES Water Services Division is requesting proposals for program management services for the development of an Integrated Water Resource Plan (IWRP). This IWRP project requires program management services to initiate a program of study, analysis, evaluation, and planning that will define and describe the next phase of planning, development and management of UTILITIES water resources for the benefit of its customers and the citizens of the City. It is required that a portion of the Respondents staffing for this effort be located at Utilities offices. The amount and frequency of the Respondents co-located staff will be determined as part of the detailed work plan described in Section 4 below. This Statement of Work document provides the background for the entire IWRP planning project, but only specifies deliverables for the 1 st phase of program-management-services work to be completed in 2011. However, the successful respondent to this request-for-proposal will be required to complete the entire planning project and co-manage and collaborate with UTILITIES staff to perform to develop and implement the tasks and sub-projects necessary to complete the final IWRP document. This Contract will be awarded for an initial two (2) year period, with an option to extend for three (3) additional one year periods, exercisable at Colorado Springs Utilities (UTILITIES) discretion. Any such extension shall be made pursuant to a written amendment of this Agreement by mutual consent of the Parties. The Parties agree that time is of the essence and performance of the Services under this Agreement shall be developed, completed and implemented according to the Statement of Work. Any delays in performance within the control of Respondent, its consultants, subcontractors, employees or agents shall not be cause for extending the completion of Program Services beyond April 2016. 2.0 Background UTILITIES has adopted the use of Integrated Resource Plan (IRP) processes for each utility service in order to identify, evaluate, and plan for the systematic and orderly acquisition, development and management of the resource portfolios required for each utility service. Examples include the Electric IRP, the Gas IRP, the Finished Water T01-10653 (05/2007) Page 1 of 9
Master Plan, and most recently the trans-enterprise Master IRP. UTILITIES last completed a comprehensive water IRP in the early 90 s, which culminated1990 s culminating in the approval of its Water Resource Plan by Colorado Springs City Council in the spring of 1996 (the 1996 WRP ). That 1996 WRP included four principal objectives: Conservation & Demand Side Management, Existing System Improvements, Non-Potable Development, and Major Delivery System. These objectives have been largely achieved through implementation of the 1996 WRP over the last 15 years with the receipt of a Record of Decision for the Southern Delivery System (SDS) Project from the U.S. Bureau of Reclamation ( Reclamation ), City Council approval of the SDS Project Implementation Plan for the Preferred Action, and UTILITIES receipt of contracts from Reclamation for the storage, conveyance and exchange of water in Fryingpan- Arkansas Project facilities 3.0 Scope UTILITIES intends to execute a professional services contract with a firm to assist with the development, from concept to finish, of a comprehensive IWRP. The IWRP shall identify and define the water resource requirements for a time horizon to be determined and identify a portfolio of structural and nonstructural solutions, including strategies, projects, infrastructure, and options for providing safe, reliable, competitively-priced water services to the citizen-owners and customers of UTILITIES. It is expected that most of the program management work will be conducted at Utilities offices. It is anticipated this may involve 2 4 CONTRACTOR personnel 20 40 hours per week depending on the phase of the program, engagement of specialty subcontractors, and the amount of field work and off-site engagement with stakeholders and other agencies. UTILITIES will provide office and meeting space, office supplies, and basic administrative support as needed. Computer equipment and network access will be negotiated with the selected respondent as part of contract negotiation. The IWRP shall consider customer water consumption, water rights, system yields, local, transmountain, and transferred agricultural water supplies, demand side management & conservation opportunities, raw-water collection, storage, and delivery systems, potable and tertiary treatment capacity, distribution system capacity, storage opportunities, and the environmental regulatory climate. The IWRP shall also address operating strategies to maximize supply yields. Strategic projects shall be identified for subsequent implementation plans. Construction and operation of the SDS Project, along with the completion of other smaller projects and programs, represents substantial implementation of Colorado Springs 1996 Water Resource Plan. This new IWRP planning effort will pick up the themes of the 1996 WRP, evaluate the efficacy of implementing any projects or processes from the 1996 WRP that have not been completed, and integrate new understandings of: risk identification, analysis, and management including linkages to multiple existing and on-going studies and assessments of the Colorado River Basin in terms of hydrology and institutional frameworks probabilistic analysis of supply, demand, and risks regional socioeconomics and development conservation and demand-side management T01-10653 (05/2007) Page 2 of 9
simulation and modeling techniques drought identification and mitigation for both long-term and short-term events climate variability and change including vulnerability assessment and adaptation responses alternative agricultural water transfer concepts including rotational fallowing; periodic, temporary lease agreements; and partial consumptive use transfer with crop substitution structural and nonstructural solutions others as identified throughout the development of the plan The final form and total content of this IWRP will be determined, in part, by the initial phase of the program, which is the community engagement process. This community engagement process shall identify and define the stakeholder groups necessary to adequately address the issues identified above. These stakeholder groups will include: UTILITIES senior management and officer team, Colorado Springs City Council acting in its role as Utilities Board, and Utilities Policy Advisory Committee (UPAC). Additional stakeholder groups may also include select groups from the following: Military representatives Homeowner groups Service and philanthropic organizations Industry associations Economic development and sustainability committees Planning commissions and watershed groups Agricultural Interests Conservation and environmental organizations The IWRP planning process will be overseen internally by a selected management team and assisted by a select technical team, both of which are comprised of individuals from within the UTILITIES organization that either have responsibility for or are affected by the outcomes and deliverables of this IWRP. At milestones to be determined, UTILITIES may also elect to convene a 3 rd -party expert panel of planning and water resource professionals to review and provide advice on the development of the IWRP. UTILITIES Water Resource staff has participated in and is currently engaged in a number of collaborative planning processes with regional partners, the Water Research Foundation, Stockholm Environment Institute, and state and federal agencies. While none of these set the agenda for this IWRP process, the program manager shall become familiar with the major themes, outcomes, and current progress of these engagements. Publications from some of these efforts are provided as part of Section 8.0 Applicable Documents. UTILITIES Water Resource staff has been moving toward a risk-based and probabilistic planning approach that would provide a framework to plan, manage, and operate a T01-10653 (05/2007) Page 3 of 9
water supply system over the long-term which is robust, resilient, and reliable in the face of the following identified risks: Drought, both long-term and short-term Climate variability and change Aging infrastructure Regulatory and legal mandates Changes in customer preferences and use patterns Economic variability and transformation Water rights litigation and administration As part of this risk-based planning approach, a suite of risk mitigation tools will be required. UTILITIES has identified the complimentary concepts of reserve margin and energy cost adjustment used within UTILITIES Energy Services Division as opportunities for development of analogs in a water resource context. A reserve margin may be defined as an amount of unused capacity and yield as a percentage or fraction of total system capacity that is reserved as a planning or operating buffer, which provides a factor of safety against service interruption. A water reserve margin or margins could serve as both short and long-term indicators of water supply shortage. An electric or gas cost adjustment factor is used by UTILITIES to maintain adequate energy revenues when the cost of fuel departs from forecast levels. A water cost adjustment factor could serve as a means to provide additional revenue over the short-term to fund temporary or interruptible water acquisitions, but infrequent shortages without the need to change long-term base rates. Other risk mitigation concepts shall also be developed and analyzed as appropriate. The resulting IWRP document shall: Be simple to understand and communicate Identify and conceptually design the actionable projects and programs necessary to achieve the IWRP s goals and objectives Provide a roadmap and timeline for the subsequent implementation plans, including the planned and permitted Phase II components of the SDS Project. Be robust and defendable in the context of ever more stringent requirements of legal and water court processes. 4.0 Tasks, Deliverables & Schedule 4.1 UTILITIES Responsibilities: 4.1.1 Assign a designated Project Manager on behalf of UTILITIES who shall have responsibility for providing all project approvals, project information, and the day-to-day management of the IWRP planning program. The UTILITIES Project Manager shall be available to consult with CONTRACTOR to facilitate the delivery of the services per this Statement of Work ( SOW ). 4.1.2 Provide CONTRACTOR with supervised access to all locations where services are to be performed. T01-10653 (05/2007) Page 4 of 9
4.1.3 Provide available background information; e.g., existing studies, water rights information, system data, base mapping, and demand data. 4.1.4 Participate in workshops and public meetings conducted by the CONTRACTOR. 4.1.5 Provide CONTRACTOR with reasonable access to UTILITIES information, documents, and data as necessary to accomplish the intent of the program. 4.1.6 Provide CONTRACTOR with reasonable access to UTILITIES personnel as appropriate to accomplish the intent of the program. 4.1.7 UTILITIES will provide office and meeting space, office supplies, and basic administrative support as needed at a UTILITIES facility. 4.2 CONTRACTOR Responsibilities: 4.2.1 Assign a designated Project Manager who shall have responsibility for providing all project approvals, project information, and the day-to-day project management of the Implementation. 4.2.2 Reassign and relocate such staff needed to prosecute the work to the Project Management Office as required and in compliance with the timephased sequences. As such, all assignments and relocations of all personnel will require approval by Utilities. 4.2.3 Participate with UTILITIES at a project kick-off meeting introducing the team, reviewing available resources, and setting a meeting schedule. 4.2.4 Provide a draft project plan developed with UTILITIES prior to the project kick-off meeting. During this meeting, a series of planning workshops shall be scheduled to refine and finalize a work plan to complete the IWRP. 4.2.5 Complete the entire IWRP planning project and co-manage and collaborate with UTILITIES staff to perform the necessary tasks and subprojects leading to the final IWRP document, including but not limited to the following: 4.2.5.1. Conduct two (2) workshops to define goals, develop strategies, and define the project plan. 4.2.5.2. Develop with UTILITIES additional project tasks for work phases subsequent to Phase I, and to perform those tasks as approved and requested by UTILITIES 4.2.5.3. Provide as needed project communication and updates to UTILITIES in both written and presentation form on a reasonable schedule to be developed cooperatively by UTILITIES and CONTRACTOR 4.2.5.4. Prepare a draft and final scoping and community engagement report that summarizes the research conducted and stakeholder input (e.g., identified issues, potential solutions, & known opportunities) received during Phase I (2011) of the IWRP process. T01-10653 (05/2007) Page 5 of 9
Public Involvement Support: 4.2.6 Support UTILITIES staff as needed in its public involvement activities. Assist with critical stakeholder management and public involvementrelated activities. 4.2.7 Provide support staff to assist with the public involvement activities. 4.2.8 Assist in coordinating with the internal and external stakeholders. 4.2.9 Consult with UTILITIES staff concerning media relations. 4.2.10 Attend and assist with preparations for public functions required to facilitate the successful messaging of the IWRP program. 4.2.11 Participate in the Project Wrap-up Session and/or this could be a presentation to the UTILITIES BOARD. 4.2.12 Conduct project team coordination meetings weekly or as often as necessary to discuss and resolve issues relating to the management of all tasks. Document the meetings and record action items assigned to project team members. 4.2.13 Manage program resources and ensure necessary technical, management and support resources are available to meet the goals and objectives of the IWRP program. Management 4.2.14 Assist UTILITIES in the preparation of material and presentations informing the public, citizen s advisory committees, advisory boards, and other governmental agencies on the status of the project. 4.2.15 Provide, organize and lead key staff to perform the program management services. 4.2.16 Prepare and review work authorizations or amendments with UTILITIES. 4.2.17 Assist UTILITIES in discussions with other governmental agencies or consultants as requested. Executive Review 4.2.18 Meet with CONTRACTOR s staff to assess planned versus actual progress. 4.2.19 Obtain input from UTILITIES on the CONTRACTOR s performance 4.2.20 Review current and projected resource requirements. Assist with development of additional work authorizations or amendments. Quality Management 4.2.21 Provide CONTRACTOR QA/QC procedures and revise/reissue as requested by UTILITIES. 4.2.22 Conduct program management reviews. T01-10653 (05/2007) Page 6 of 9
Program Controls 4.2.23 The primary role of the CONTRACTOR shall be to maintain a reliable program controls management information system using proven program software and procedures. The CONTRACTOR shall monitor program and project progress from both schedule and cost perspectives and shall manage the flow of information with UTILITIES. 5.0 Performance Requirement and Methods of Measurement CONTRACTOR s performance measurement will be based on the following tabulated criteria. CONTRACTOR s performance shall be accessed after each task is completed. Item # Performance Measurement Methods Matrix Measurement Method Analysis Inspection Physical Test Measurement Component UTILITIES Project Lead/ Manager 1 Quality of Work 2 Timely Performance 3 Budget Compliance 4 Effectiveness of Management Completion of project on time or before UTILITIES Project Lead/ Manager Upon project completion Proper compliance to all standards and requirements to achieve UTILITIES goals Substantial completion date according to agreed upon Project Plan. Resolution and flexibility to task order issues; customer service; resource allocation; compliance with contract Score rating report Project Plan and deliverables, compliance with UTILITIES reporting and drawing standards Weekly schedule updates Timely response to issues Does not meet requirements or exceeds requirements Demonstration Acceptance of Contractor s Project Plan and deliverables Meets or exceeds substantial completion date of Task. Issue resolutions which meet or exceed UTILITIES requirements and resources assigned to task Score below minimum expectations will result in contract termination T01-10653 (05/2007) Page 7 of 9
Performance Measurement Methods Matrix Item # Measurement Method Analysis Inspection Physical Measurement 6 Compliance with Contract Terms and Conditions Test Component Demonstration CONTRACTOR shall be rated as outstanding, satisfactory, or unsatisfactory. Unsatisfactory ratings shall be taken into consideration at the time of contract renewal. Based on performance measures Contractor s contract may not be renewed. 6.0 Contractor Key Contact The Contractor personnel listed below are considered to be essential to the work being performed hereunder. Prior to diverting the specified individual to other programs or in the event a key personnel terminates his/her employment, the Contractor shall inform UTILITIES in writing of any non-employee persons, consultants or firms CONTRACTOR intends to hire to perform any Work required by this Agreement and shall keep UTILITIES informed of any changes or additions to this information in advance and shall submit justification, including proposed substitutions, in sufficient detail to permit evaluation of the impact on the program. No diversion or substitution shall be made by the Contractor without written consent of UTILITIES. Name (TBD) Organization Name Organization (TBD) 7.0 Non-Disclosure of Information The selected Contractor will have access to information of a politically or legally sensitive nature, as well as restricted information regarding Utilities operations and security that shall not be disclosed. The selected Contractor will be required to sign a nondisclosure/confidentiality agreement before Utilities releases sensitive information for project purposes. Please see the sample non-disclosure/confidentiality agreement attached. 8.0 Applicable Documents Utilities will provide any documents (e.g., reports, diagrams, correspondence, etc.) that may be required to complete the work effort. The following information is provided as part of this RFP: T01-10653 (05/2007) Page 8 of 9
Timeline 1996 WRP SDS Whitepaper Additional information that will also be available to the selected Contractor includes the following: Water Research Foundation Reports Raw Water Yield Study System Maps Other relevant reports, studies, and research completed for Utilities. 9.0 Outside Information It shall be the responsibility of UTILITIES to address all requests for outside information regarding the project including press releases, permission for news photographers, etc. All requests for such information shall be referred to UTILITIES. Under no circumstance shall any raw data, draft report, or final report prepared, on behalf of UTILITIES, be submitted to any third party or regulatory agency in the absence of explicit written authorization by UTILITIES. 10.0 Security Requirements Access to any properties or facilities owned or managed by UTILITIES shall be coordinated through the Watershed Planning Section, and may require prior approval by Water System Operations and/or Security Operations. Access will be granted according to applicable policies and procedures, including QBD 11671, Colorado Springs Utilities Security Plan and QBD 10213, Raw Water Access and Location of Watersheds. IT Network Security Requirements Remote access to Colorado Springs Utilities computer resources is provided to perform work authorized by UTILITIES. Access to general enterprise computing systems, using Utilities computer equipment with VPN technology, is enabled for all employees as a standard provision. Remote access by Contractors and temporary employees must be requested and authorized using the Remote Access Request process. Remote access to protected, critical systems or access through dialup solutions must be specifically requested and authorized using the Remote Access Request process. T01-10653 (05/2007) Page 9 of 9