HomeMy WebLinkAbout5346�r
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RESOLUTION NO. 5346
A RESOLUTION APPROVING A WASTEWATER
SYSTEM STUDY CONTRACT BETWEEN THE CITY
OF PUEBLO AND BLACK & VEATCH, CONSULT-
ING ENGINEERS, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO,
COLORADO, THAT:
SECTION 1.
A Wastewater System Study Contract between the
City of Pueblo, a Municipal Corporation, and Black & Veatch,
Consulting Engineers, a copy of which is attached hereto and
made a part hereof by reference, after having been approved
as to form by the City Attorney, is hereby approved.
SECTION 2.
The Director of Finance is hereby authorized to
transfer $25,000.00 from Fund Balance Account #14 -7090 to
Account #14 -435 -0020 Professional Services Sewer User Fund,
to pay for said project.
SECTION 3.
The City Manager is hereby authorized and directed
to execute said contract for and on behalf of the City of
Pueblo and the City Clerk is directed to affix the seal of the
City of Pueblo thereto and attest the same.
INTRODUCED Marrh 12 , 1984
BY REIMAR VON KALBEN
Councilman
APPROVED BY:
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ATTEST:
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BLACK & V E A T C H
ENGINEERS - ARCHITECTS
Mr. Fred E. Weisbrod.
City Manager M AR 6 �984,�
City of Pueblo City
1 City Hall Place �ia:a�ar's Oftide
Pue blo, CO
2nd Floor
Pueblo, CO 81003 4' i�
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Dear Mr. Weisbrod:
TEL. (9131967-2000
TELEX 42 -6263
1500 MEADOW LAKE PARKWAY
MAILING ADDRESS: P.O. BOX NO. 8405
KANSAS CITY, MISSOURI 64114
March 5, 1984
As requested, we are submitting a proposed scope of work and cost
estimate for updating our 1980 Report on Wastewater Utility Revenue
Requirements, Costs of Service, and Rates for the City of Pueblo. The
following scope of services is suggested:
1. Based on a review of historical records of the number of
customers served, historical wastewater volumes by customer
class, and revenue received under the existing rate schedules,
project customers, volumes, and revenues for a five year study
period.
2. Develop annual revenue requirements for the wastewater utility
based on actual cash needs for the five year study period.
Revenue requirements will include operation and maintenance
expenses and capital- related costs including routine capital
additions and replacements, debt service on existing and any
proposed revenue bond issues, and any other cash obligations
of the utility. Revenue requirements will be based on an
analysis of historical expenditures since the last rate study
and projected on a yearly basis taking into account expected
operational changes and the effects of continuing inflation on
cost levels.
3. Based on the projections of revenues under existing rates and
total revenue requirements of the wastewater utility, determine
the adequacy of existing revenues to meet requirements on a
year by year basis for the study period. Determine the need
and extent of any overall revenue level adjustments required
to finance the major and routine annual capital expenditures
of the capital improvement program provided by the City.
BLACK & VEATCH
Mr. Fred Weisbrod 2 March 5, 1984
4. Upon approval of the financing plan, allocate an appropriate
test level of revenue requirements, or total cost of service
provided by the wastewater utility, to the various functional
cost of service components related to wastewater volume,
strength, infiltration /inflow and customer cost.
5. Based on available data from the City and experience of other
utilities, estimate the relative responsibility of each customer
group, or customer class, for wastewater volumes delivered,
contributed strength, infiltration /inflow and customer cost.
Customer classes will consist of residential, commercial and
industrial classifications used in our 1980 study.
6. Distribute the cost by functional component to the various
customer classifications based on relative service requirements
and federal guidelines.
7. Develop a schedule of wastewater service charges which will
reasonably recover revenue from the various classes of customers
in proportion to the total cost of providing service to each
class and which will provide the total level of revenue required.
Federal user charge requirements as of the date of the notice
to proceed will be recognized.
8. Prepare preliminary findings of the revenue and revenue
requirements analysis for the wastewater utility and present
the findings in person to City representatives on a date
agreeable to both parties. Upon completion of rate study,
prepare a preliminary report summarizing revenue requirements,
cost allocations and rate design for the wastewater utility
and present findings in person to City representatives on date
agreeable to both parties. Upon receipt of review comments
from the City, revise the preliminary report, if necessary,
before submitting 50 copies of the final report. Present the
report findings in one appearance before the City Council.
For the above scope of work, approximately 60 mandays of efforts will be
required. The estimated fee for this level of effort, to include approximately
$3,400 in out -of- pocket expenses, would be about $25,000. We will
submit itemized monthly statements for time spent and out -of- pocket
expenses incurred during the previous month. Should the work be performed
for less than the maximum estimated fee, the City would only be billed
for the actual time and cost incurred.
It is our understanding that the City proposes to initiate the study by
March 13 and desires the study results by May 1 so that they may be
included with an EPA funding request. The approximately six weeks
provided for the study is extremely tight for the proposed scope of work
involved and will require close coordination between the City and Black
& Veatch. First of all, the items in the enclosed data request list
must be assembled and ready for review during the first part of the week
BLACK a VEATCH
Mr. Fred Weisbrod 3 March 5, 1984
beginning March 19. Black & Veatch will meet with City representatives
during that week to review the assembled data, make additional requests
ds necessary, and hand -carry the materials to Kansas City.
We estimate that revenue requirements and the proposed financing plan
may be ready in preliminary form for review about mid - April. After a
brief review by the City and receipts of review comments, Black & Veatch
will revise the financing plan as necessary before allocating cost and
designing rates for wastewater service. A preliminary final rate study
report will be delivered for City review by May 1. Review of the preliminary
report, preparation of a final report, and presentation to the City
Council would occur after May 1. We estimate that a final report could
be delivered within two weeks after receipt of the City's review comments
on the preliminary final report.
We appreciate the opportunity to submit this proposal and look forwarding
to conducting the proposed rate study update. If you have any questions
after reviewing this letter proposal, please contact us.
Very truly yours,
BLA & CH
. R. B wn
mp
Enclosure
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BLACK & VEATCH
March 5, 1984
Pueblo, Colorado
Data Request for
Wastewater Rate Study Update
1.
Annual financial reports of the City to include all departments
from 1979 through 1983. Preliminary 1983 audit schedules and
tables will be acceptable.
2.
The annual budget of the City showing all departments for 1980
through 1984. Computer - printed Trial Balance for the Sewer
User Fund for years ending December 31, 1980, 1981, 1982, and
1983. Computer - printed Appropriation Report of Sewer User
Fund for years ending December 31, 1980, 1981, 1982, and 1983.
3.
Sewer User Fund current ledger showing Revenue detail by
source of funds and Encumberence and Disbursements for 1980,
1981, 1982 and 1983.
4.
Department of Public Works, Wastewater Treatment Division,
Annual Reports for 1980, 1981, 1982 and 1983.
5.
Copies of laboratory analyses of high strength users monitored
in 1980, 1981, 1982 and 1983. Such users could include the
Boston Company, Alpha Beta Packers, Pepsi Company, CBE Metals,
Horizon, and Triplex.
6.
Copies of monthly hand - billed charges and surcharges to
monitored industrial customers for 1980 through 1983.
7.
Monthly Consumption Report of the Pueblo Board of Water Works
by meter size for each user code, or customer class, for the
months -of January and February for 1981 through 1984.
8.
Computer print out of Water Board's Billing Ledger as of
March 1984 with an indication of sewer exempt water accounts
included.
9.
A list of any flat -rate customers provided sewer service but
not being billed by the Water Board which shows monthly volumes
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and revenues for 1980 through 1983.
10.
Current contract for service with the Blende Sanitation District
and copies of monthly billed wastewater volumes and revenues
for 1980 through 1983.
11.
A copy of the most recent engineer's 201 report and /or system
design report. We have in our possession a 1977 version of
the 201 study and require a report indicating the most recent
cencept for the wastewater system.
B L A C K & V E A T C H
12. A five year capital improvement program showing itemized
projects by ear of construction initiation and estimated cost
in a format shown in Table 3 of Black & Veatch's 1980 Wastewater
Rate Report. Indicate whether costs represent current cost
estimates or include an allowance for inflation on cost to the
year of construction. Designate those projects eligible.for
50 percent EPA grant funding.
13. Copy of the current rate ordinances which may in Chapters 6
and 7 of Title XVI, Water and Sewer, of the 1971 Code of
Ordinances.
14. Copy of the agreement with the Pueblo Board of Water Works
describing the determination of the City's share of customer
accounting and billing cost incurred by the Water Board.
15. A copy of the wastewater revenue bond ordinance and 1980 bond
Official Statement. A copy of the existing revenue bond debt
service payment schedule.
16. A list of sewer mains by type, size and length in the Pueblo
Sewer System.
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