Loading...
HomeMy WebLinkAbout5346�r e , 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: Wr � WE O • ' • • ATTEST: a ity Jerk � e� 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� /b r 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 r 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 r 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. r. .