HomeMy WebLinkAbout7876RESOLUTION NO. 7876
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
THE CITY OF PUEBLO AND BLACK AND VEATCH CONSUL-
TANTS FOR PROFESSIONAL SERVICES ASSOCIATED WITH
THE WASTEWATER UTILITY FINANCIAL PLAN AND RATES
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
An agreement, a copy of which is on file at the office of the City Clerk and made a part
hereof by reference, after having been approved as to form by the City Attorney, by and between
Pueblo, a Municipal Corporation and Black and Veatch Consultants, is hereby approved.
SECTION 2.
Funds for said professional services shall be paid from the Wastewater Administration -
Professional Services Account, Number 014 - 0400 - 437 - 000 - 030 -0020.
SECTION 3.
The President of the City Council is hereby authorized to execute the said Agreement on
behalf of Pueblo, a Municipal corporation and the City clerk shall affix the seal of the City thereto
and attest the same.
INTRODUCED May 28 1 1996
By Al G.irule
Councilperson
APPROVED:
President o e Council
ATTEST:
City Clerk
BLACK &VEATCH
1 1900 East Cornell Avenue Suite 300, Aurora, Coloroao 80014 303)b71-4200 Fax 1303) 671 -4285
Mr, James R. DiIorio
Director of Utilities
City of Pueblo
211 East "D" Street
Pueblo, CO 81003
Dear Mr. DiIorio:
May 15, 1996
i
i
can,
As requested, we are submitting this proposal to update the wastewater utility
financial plan and rates. Our proposal includes a general scope of work, an
estimate of fees, and a basis for billing.
SCOPE OF WORK
The scope of work for this study will include the following tasks:
1. Financial Plan Update
The City staff will provide operating, financial and statistical data needed to
update the financial plan, including a summary of wastewater bills that will
reconcile to audited revenues. We will update the wastewater utility
financial plan for the five -year study period, 1997 through 2001. Up to
three different financial plan scenarios will be developed for the City. We
will meet with City staff at our office to discuss preliminary financial plan
scenarios and select an optimum plan.
2. Cost of Service Analysis
The City staff will summarize operation and maintenance expenses and
capital investment costs for the collection system and each major facility
within the treatment plant (for example, headworks, primary, secondary,
sludge handling). We will review the current basis for allocating cost of
service to customer classes including:
BLACK & V E A T C H
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Mr. James R. DiIorio May 15, 1996
• Operation and maintenance expense and capital cost allocation factors.
• Definition of customer classes.
• Policy for charging outside City customers.
Particular attention will be paid to industrial monitoring and Blende
Sanitation District cost allocations. We will meet with City staff at our
office to finalize the cost of service findings.
3. Rate Design
Wastewater rates will be designed for a future test year to meet annual cash
requirements identified in the financial plan and fairly recover allocated cost
of service. We will meet with City staff at our office to finalize the rate
design findings.
4. Reports
We will publish a draft letter report for staff review. A final report will be
prepared after receiving staff s comments on draft report.
5. Computer Model Modifications
The wastewater utility's rate model will be modified to take advantage of the
latest technology enhancements of Lotus 1 -2 -3 software and computer
hardware. Model changes will include:
• Combining the current model's multiple files into a single file with
multiple work sheets. This will eliminate the need for data transfers
between files and significantly enhance model speed and performance.
• Eliminating iterative calculation macros. This change will the allow the
user to immediately see the impact of any input change.
• Adding an improved model menu system for file navigation and printing.
This will enhance the user - friendliness of the existing model.
BLACK & V E A T C H
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Mr. James R. DiIorio
May 15, 1996
• Developing an on -line help file to support model operation. The on -line
help facility will provide the user with detailed explanations and tips on
model operation.
A one -day training session will be held with City staff at our office to review
enhanced model operation and changes. A new users manual and example file
printouts will be provided to the City.
ESTIMATED FEES
We estimate an effort of 170 hours and a fee of $14,900 to perform this study.
Our fee is based on current hourly billing rates plus direct expenses. Direct
expenses include such items as computer, reproduction, telephone, and postage
costs. A breakdown of our estimated fee by task is as follows:
Staff Hours Estimated Fee
1. Financial Plan Update
2. Cost of Service Analysis
3. Rate Design
4. Reports
5. Computer Model Modifications
Total
28
42
20
56
24
170
2,440
3,450
1,580
4,860
2,570
14,900
BLACK & V E A T C H
Page 4
Mr. James R. DiIorio
May 15, 1996
We greatly appreciate the opportunity to submit this proposal. Please let us
know if you have any questions.
Very truly yours,
a.
0 John A. Gallag er
alh
CITY OF PUEBLO
Accepted by
Attest