HomeMy WebLinkAbout6054RESOLUTION NO. 6054
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE
CITY OF PUEBLO AND BLACK & VEATCH CONSULTING
ENGINEERS, FOR PROFESSIONAL SERVICES ASSOCIATED
WITH UPDATING THE 1984 REPORT ON WASTEWATER
UTILITY REVENUE REQUIREMENTS, COSTS OF SERVICE,
AND RATES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO, COLORADO, that:
SECTION 1.
An Agreement dated June 24, 1987, 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 & Veatch Consulting Engineers, is hereby approved.
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Funds for said professional services, which are estimated to cost $25,000,
shall be paid from Account No. 014 - 0400 - 437 - 000 - 030 -0031.
CFCTTnN I
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 July 13 , 1987
B y ALLY I DDELKAMP
ouncilman
APPROVED
resident of the Council
ATTEST:
f
City Clerk
B LAC K & V E A T C H
ENGINEERS - ARCHITECTS TEL. (913) 339 -2000
1500 MEADOW LAKE PARKWAY
MAILING ADDRESS P.O. BOX NO. 8405
KANSAS CITY, MISSOURI 64114
June 24, 1987
Mr. Donald J. Saling
Asst. City Manager /Utility Manager
Department of Public Works
211 East "D" Street
Pueblo, Colorado 81003
Dear Mr. Saling:
As requested, we are submitting a proposed scope of work and cost estimate
for updating our 1984 Report on Wastewater Utility Revenue Requiremen
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.
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.
BLACK & V E A T C H
Mr. Donald J. Saling 2 June 10, 1987
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 and 1984 studies.
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. Sewer User Charges that are
developed shall be in compliance with the rate covenants of
Ordinances No. 5341 and 5265 of the City of Pueblo.
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 letter 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 letter report, if necessary,
before submitting the final letter report. Present the report
findings in one appearance before the City Council.
For the above scope of work, approximately 40 mandays of effort will be
required. The fee for this level of effort, to include approximately
$4,600 in out -of- pocket expenses, shall not exceed $25,000. The basis of
our billing is 2.8 times salary costs plus direct out -of- pocket expenses.
We will submit itemized monthly statements for time spent and out -of- pocket
expenses incurred during the 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.
We estimate that revenue requirements and the proposed financing plan may
be ready in preliminary form for review about 30 days after receipt of all
basic data. After a brief review by the City and receipt 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 letter report will be delivered for City review. Review
of the preliminary report, preparation of a final letter report, and
presentation to the City Council would occur or a schedule to yet be
determined. We estimate that a final report could be delivered within two
B L A C K & V E A T C H
Mr. Donald J. Saling 3 June 10, 1987
weeks after receipt of the City's review comments on the preliminary final
letter report.
As you requested, we are enclosing a listing of the basic material that
would be necessary in order to proceed with this study.
We appreciate the opportunity to submit this proposal and look forward to
conducting the proposed rate study update. If you have any questions after
reviewing this letter proposal, please contact us.
Very truly yours,
BLA &
J. R. Brown
jwa
Enclosure
This proposal shall be approved upon acceptance by the President of the
City Council and attested to by the City Clerk.
Approve .
P e ' ent of City Council
Attest
City Jerk