HomeMy WebLinkAbout1989-12-19; City Council; 10426; Sewer Rate Study & Funds AppropiationOF CARLSBAD - AGENC BILL
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MTG 12/19/89
OPPT U/M
TITLE: CONSULTANT CONTRACT FOR THE
PREPARATION OF A SEWER RATE STUDY FOR THE
CITY OF CARLSBAD AND APPROPRIATION OF FUNDS
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CITY MQR.5^
RECOMMENDED ACTION:
Adopt Resolution No. Aj'T7~<& approving a consultant contract
with James M. Montgomery, Consulting Engineers, Incorporated,
for the preparation of a Sewer Rate Study for the City of
Carlsbad and appropriating $51,000.
ITEM EXPLANATION;
It has been over 5-1/2 years since the sewer service charge
has been adjusted. Since that time, energy, operations and
maintenance costs have increased and Encina has implemented
centralized flow monitoring and pretreatment testing of
effluent. In addition, Encina's expansion and proposed sludge
management costs make it necessary that the City review the
adequacy of the present sewer service charges. An update of
the existing inventory and an analysis of the current rate and
revenue structure are also required.
Staff prepared a request for proposal to perform a sewer rate
study and solicited proposals from (22) firms. Six (6)
proposals were received. After a review by staff, James M.
Montgomery Consulting Engineers, Incorporated (JMM), was
determined to be the firm that could best develop an equitable
rate structure in the most cost effective manner considering
time, cost and other factors. JMM will provide the City with
a computerized rate model that can be used for rate
determinations, in the future. The consultant will analyze
the present financial position and predict financial
requirements over a five year period. After analyzing the
existing service charge and fee system, an upgraded analysis
of inventory data and prediction of current and future
expenses and revenues will be made. The consultant will then
propose appropriate changes in the City of Carlsbad sewer rate
> ordinances.O
jb FISCAL IMPACT;
The sewer enterprise fund is totally dependent on sewer
service charges and other fees for its support. No general
fund revenues are dedicated to the operation and/or
maintenance of the sewer system. The maintenance of
appropriate sewer service charges is necessary for this fund
_ to remain fiscally sound. In the years past, the City has
< used studies similar to the one proposed in this agenda bill
for the establishment of sewer service changes and operating
O
OO
rates .
PAGE 2 OF
From time to time, it is necessary to review the operation and
detail to guarantee that the City Council has established
rates that fairly reflect the cost of operation. Although it
is not guaranteed that the sewer study as proposed will result
in increased sewer service charges, it is likely that a series
of sewer rate increases will occur over the years to come
based on the information to be presented through this study.
The cost of the proposed study will be $51,000 which is not
covered by current appropriations in the sewer enterprise
fund. Adequate funds are available in the sewer enterprise
fund retained earnings account (Account No. 511-890) and
should be transferred to Account No. 511-820-6110-2479 to
cover the contract costs.
Funds for the study were not budgeted since the study was
originally to be performed by City staff. After completing
the scope of work it was apparent that, given the timing and
complexity of the study, staff was not available to complete
the work in a timely manner.
EXHIBITS;
1. Resolution No. <y-yf^ approving a consultant contract
with James M. Montgomery Consulting Engineers, Inc.
(JMM), for the preparation of a sewer rate study.
2. Consultant proposal for the preparation of City of
Carlsbad's Sewer Rate Study.
RESOLUTION NO. 89-445
A RESOLUTION OP THE CITY COUNCIL OF THE CITY
1 OF CARLSBAD, CALIFORNIA, APPROVING A
CONSULTANT CONTRACT BETWEEN THE CITY OF
2 CARLSBAD AND JAMES M. MONTGOMERY, CONSULTING
ENGINEERS, INCORPORATED, AN AUTHORIZING THE
3 TRANSFER OF FUNDS FOR THE PREPARATION OF A
SEWER RATE STUDY FOR THE CITY OF CARLSBAD
4
5 WHEREAS, proposals have been received for the preparation
6 of a sewer rate study for the City of Carlsbad;
7 WHEREAS, the firm of James M. Montgomery, Consulting
8 Engineers, Incorporated, has been selected to perform the work
9 for the amount of $51,000;
10 WHEREAS, there are no funds budgeted for the work; and
11 WHEREAS, there are adequate funds available in the Sewer
12 Enterprise Fund Retained Earnings Account to accomplish the
13 work.
14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the
15 City of Carlsbad, as follows:
15 1. That the above recitations are true and correct.
17 2. That the consultant contract between the City of
13 Carlsbad and James M. Montgomery, Consulting Engineers,
19 Incorporated, for the preparation of a sewer rate study,
20 attached hereto as Exhibit A, is hereby approved and the Mayor
21 and City Clerk are hereby authorized and directed to execute
22 said contract.
23 3. That the transfer of $51,000 from the Sewer
24 Enterprise Fund Retained Earnings Account No. 511-890 to
25 Account No. 511-820-6110-2479 is authorized and directed.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
Carlsbad City Council held on the 19th day of December
1989, by the following vote, to wit:
AYES: Council Members Lewis, Pettine and Larson
NOES: None
ABSENT: Council Members Kulchin and
ATTEST:
VUDE A. LEWIS; Mayor
ALBTHA L.
R.
, City Clerk
)TZ, Deputy City Clerk
(SEAL)
CONSULTANT CONTRACT FOR PREPARATION OF
SEWER RATE STUDY FOR THE CITY OF CARLSBAD
THIS CONTRACT, made and entered into as of the day of
19__, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter
referred to as "City," and James M. Montgomery, Consulting Engineers,Inc. of
Pasadena, California, hereinafter referred to as "Consultant."
RECITALS
The City requires the services of a qualified engineering consultant to
provide the necessary services for conducting a sewer rate study; and
The Consultant possesses the necessary skills and qualifications to provide
the services required by the City;
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Consultant agree as follows:
1. CONSULTANTS OBLIGATIONS
The consultant shall provide necessary consulting services for the
conducting of a sewer rate study in accordance with the attached "Proposal"
submitted by the Consultant, dated July 13, 1989.
2. CITY OBLIGATIONS
A. The Utilities & Maintenance Director, or his designated
representative, shall provide appropriate direction and liaison to the
consultant.
12/8/89
2
B. The Finance Director and the City Engineer, or their designated
representatives, shall provide appropriate liaison to the Consultant.
C. All of the above will make records available to the Consultant and
respond to requests for information from the Consultant in a timely manner, which
is two (2) workdays unless there are complications.
3. PROGRESS AND COMPLETION
The work under this Contract will begin within ten (10) days after receipt
of Notification To Proceed by the Utilities & Maintenance Director and be
completed within the time limit specified therein. Extensions of time may be
granted if requested by the Consultant- and agreed to in writing by the Utilities
& Maintenance Director. In consideration of such requests, the Utilities &
Maintenance Director will give allowance for documented and substantiated
unforeseeable and unavoidable delays not caused by a lack of foresight on the
part of the Consultant, or delays caused by City inaction or other agencies' lack
of timely action.
4. FEES TO BE PAID TO CONSULTANT
The full sum fee payable according to Paragraph 5, "Payment of Fees," shall
be fifty-one thousand dollars ($51,000.00). No other compensation for services
will be allowed except those items covered by Supplemental Contracts per
Paragraph 7, "Changes in Work."
5. PAYMENT OF FEES
Partial payment of fees shall be made. Two (2) copies of invoices are to
be submitted to the Department Secretary, Utilities & Maintenance Department,
1200 Elm Avenue, Carlsbad, California 92008 by the fifth of each month. Checks
for partial payments will be disbursed by the third Friday of the month.
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6. FINAL SUBMISSIONS
Within fifteen (15) days of completion and approval of the final work,
the Consultant shall deliver to the Utilities & Maintenance Director, all final
documents which shall be appropriately signed.
7. CHANGES IN WORK
If, in the course of this Contract, changes deemed merited by the Consultant
or the City, and informal consultations with the other party indicate that a
change in the conditions of the Contract is warranted, the Consultant or the City
may request a change in Contract. Such changes shall be processed by the City
in the following manner: A letter outlining the required changes shall be
forwarded to the Utilities & Maintenance Director by the Consultant informing
the Director of the proposed changes along with a statement of estimated changes
in charges or time schedule. After reaching mutual agreement on the proposal,
a Supplemental Contract shall be prepared by the City, and approved by the City
Council or City Manager. Such Supplemental Contract shall not render ineffective
or invalidate unaffected portions of the Contract. Changes requiring immediate
action by the Consultant or the City shall be ordered by the Utilities &
Maintenance Director who will inform a principal of the Consultant's firm of the
necessity of such action and follow up with a Supplemental Contract covering such
work.
8. COVENANTS AGAINST CONTINGENT FEES
The Consultant warrants that their firm has not employed or retained any
company or person, other than a bona fide employee working for the Consultant,
to solicit or secure this Contract, and that the Consultant has not paid or
agreed to pay any company or person, other than a bona fide employee, any fee,
commission, percentage, brokerage fee, gift, or any other consideration
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contingent upon, or resulting from, the award or making of this Contract. For
breach or violation of this warranty, the City shall have the right to annul this
Contract without liability, or, in its discretion, to deduct from the agreement
price or consideration, or otherwise recover, the full amount of such fee,
commission, percentage, brokerage fee, gift, or contingent fee.
9. NONDISCRIHINATION CLAUSE
The Consultant shall comply with the State and Federal Regulations regarding
nondiscrimination.
10. TERMINATION OF CONTRACT
In the event of the Consultant's failure to prosecute, deliver, or perform
the work as provided for in this Contract, and the Notice to Proceed, the City
may terminate this Contract for nonperformance by notifying the Consultant by
certified mail of the termination of the Contract. The Consultant, thereupon,
has five (5) working days to deliver said documents owned by the City and all
work in progress to the Utilities & Maintenance Director. The Utilities &
Maintenance Director shall make a determination of fact based upon the documents
delivered to the City of the percentage of work which the Consultant has
performed which is usable and of worth to the City in having the Contract
completed. Based upon that finding, as reported to the City Manager and/or City
Council, a determination of the final payment of the Contract shall be made.
Final payment shall be in compliance with the Code of Federal Regulations.
11. DISPUTES
If a dispute should arise regarding the performance of work under this
Contract, the following procedure shall be used to resolve any question of fact
or interpretation not otherwise settled by agreement between parties. Such
questions, if they become identified as a part of a dispute among persons
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operating under the provisions of this Contract, shall be reduced to writing by
the principal of the Consultant or the Utilities & Maintenance Director. A copy
of such documented dispute shall be forwarded to both parties involved along
with recommended methods of resolution which would be of benefit to both parties.
The Utilities & Maintenance Director or the principal of the Consultant receiving
the letter shall reply to the letter along with a recommended method of
resolution within ten (10) calendar days. If the resolution thus obtained is
unsatisfactory to the aggrieved party, a letter outlining the dispute shall be
forwarded to the City Manager or the City Council through the Office of the City
Manager for resolution. The City Council or the City Manager may then opt to
consider the directed solution to the problem. In such cases, the action of the
City Council shall be binding upon the parties involved, although nothing in this
procedure shall prohibit the parties seeking remedies available to them at law.
12. RESPONSIBILITY OF THE CONSULTANT
The Consultant is hired to render professional services as set forth herein
and any payments made to Consultant are compensation solely for such services.
The Consultant shall certify as to the correctness of all designs and sign all
plans, specifications, and estimates furnished with a Registered Civil Engineer's
number.
13. SUSPENSION OR TERMINATION OF SERVICES
This Contract may be terminated by either party upon tendering thirty (30)
days written notice to the other party. In the event of such suspension or
termination, upon request of the City, the Consultant shall assemble the work
product and put same in order for proper filing and closing and deliver said
product to the Utilities and Maintenance Director. In the event of termination,
the Consultant shall be paid for work, performed to the termination date; however,
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the total shall not exceed the guaranteed total maximum. The Utilities &
Maintenance Director shall make the final determination as to the portions of
tasks completed and the compensation to be made. Compensation to be made in
compliance with the Code of Federal Regulations.
14. STATUS OF THE CONSULTANT
A. The Consultant shall perform the services provided for herein in
Consultant's own way as an independent Contractor and in pursuit of Consultant's
independent calling, and not as an employee of the City. The Consultant shall
be under control of the Utilities & Maintenance Director or his designated
representative, only as to the result to be accomplished and the personnel
assigned to the project, but shall consult with the Utilities & Maintenance
Director, or designated persons as provided for herein.
B. The Consultant is an independent contractor of the City. The payment
made to the Consultant pursuant to this Contract shall be the full and complete
compensation to which the Consultant is entitled pursuant to this Contract.
The City shall not make any federal or state tax withholdings on behalf of the
Consultant. The City shall not be required to pay any workers' compensation
insurance on behalf of the Consultant. The Consultant agrees to indemnify the
City for any tax, retirement contribution, social security, overtime payment,
or workers' compensation payment which the City may be required to make on behalf
of the Consultant or any employee of the Consultant for work done under this
Contract.
C. The Consultant shall be aware of and comply with the Immigration
Reform and Control Act of 1986. to include but not limited to, verifying the
eligibility for employment of all agents, employees, subcontractors and
consultants that are included in this Contract.
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15. CONFORMITY TO LEGAL REQUIREMENTS
A. The Consultant shall cause all documents to conform to all applicable
requirements of law: Federal, State, County and City. Consultant shall provide
all necessary supporting documents, to be filed with any agencies whose approval
is necessary.
B. The City will provide copies of the approved documents to any other
agencies, as required.
16. OWNERSHIP OF DOCUMENTS
All documents, studies, sketches, drawings, reports, and specifications as
herein required are the property of the City, whether the work for which they
are made is to be executed or not. In the event this Contract is terminated,
all documents, studies, sketches, drawings, reports and specifications shall be
delivered forthwith to the Utilities & Maintenance Director. The Consultant
shall have the right to make one (1) copy for the Consultant's records.
17. HOLD HARMLESS AGREEMENT
The City, its agents, officers, and employees shall not be liable for any
claims, liabilities, penalties, fines, or any damage to goods, properties, or
effects of any person whatever, nor for personal injuries or death caused by,
or resulting from, or claimed to have been caused by any act, or omission of the
Consultant or the Consultant's agents, employees, or representatives. The
Consultant agrees to defend, indemnify, and save free and harmless the City and
its authorized officers and employees against any of the foregoing liabilities
or claims of any kind and any cost and expense that is incurred by the City on
account of any of the foregoing liabilities. Consultant shall not be liable for
any of the foregoing liabilities caused by the sole negligence of the City.
Further, Consultant shall be entitled to rely on any and all data furnished by
City to Consultant under this Agreement.
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18. ASSIGNMENT OF CONTRACT
The Consultant shall not assign this Contract or any part thereof or any
monies due thereunder without the prior written consent of the City.
19. SUBCONTRACTING
If the Consultant shall subcontract any of the work to be performed under
this Contract by the Consultant, the Consultant shall be fully responsible to
the City for the acts and omissions of the Consultant's subcontractor(s) and of
the persons either directly or indirectly employed by the subcontractor(s), as
the Consultant is for the acts and omissions of persons directly employed by
Consultant. Nothing contained in this Contract shall create any contractual
relationship between any subcontractor of Consultant and the City. The
Consultant shall bind every subcontractor and every subcontractor of a
subcontractor by the terms of this Contract applicable to Consultant's work
unless specifically noted to the contrary in the subcontract in question and
approved in writing by the Utilities & Maintenance Director.
20. PROHIBITED INTEREST
No official of the City who is authorized in such capacity on behalf of the
City to negotiate, make, accept, or approve, or take part in negotiating, making,
accepting, or approving of any architectural, engineering, inspection,
construction or material supply contractor, or any subcontractor in connection
with the construction of the project, shall become directly or indirectly
interested personally in this Contract or in any part thereof. No officer,
employee, architect, attorney, engineer, or inspector of or for the City who is
authorized in such capacity and on behalf of the City to exercise any executive,
supervisory, or other similar functions in connection with the performance of
this Contract shall become directly or indirectly interested personally in this
Contract or any part thereof.
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21. VERBAL CONTRACT OR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employee
of the City, either before, during, or after the execution of this Contract,
shall affect or modify any of the terms or obligations herein contained nor such
verbal agreement or conversation entitle the Consultant to any additional payment
whatsoever under the terms of this Contract.
22. SUCCESSORS OR ASSIGNS
Subject to the provisions of Paragraph 18, "Hold Harmless Agreement," all
terms, conditions, and provisions hereof shall insure to and shall bind each of
the parties hereto, and each of their respective heirs, executors,
administrators, successors, and assigns.
23. EFFECTIVE DATE
This Contract shall be effective on and from the day and year first above
written.
24. CONFLICT OF INTEREST
The Consultant shall file a Conflict of Interest Statement with the City
Clerk of the City of Carlsbad in accordance with the requirements of the City
of Carlsbad Conflict of Interest Code prior to commencing work under this
Contract.
25. INSURANCE
A. The Consultant shall obtain and maintain a policy of liability
insurance from an insurance company authorized to be in business in the State
of California, in an insurable amount of not less than one million dollars
($1,000,000). This insurance shall be in force during the life of this Contract
and shall not be cancelled without thirty (30) days prior written notice to the
City Clerk.
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B. The City shall be named as an additional insured on this policy.
The Consultant shall furnish a certificate of said insurance to the City Clerk
prior to commencing work under this Contract.
IN WITNESS WHEREOF, we have hereunto set our hands and seals.
(CONSULTANT'S NAME) CITY OF CARLSBAD:
Title Title
APPROVED AS TO FORM: ATTESTED:
Vincent F. Biondo, Jr. Aletha L. Rautenkranz
City Attorney City Clerk
City of Carlsbad
Proposal to Perform
Sewer Rate Study
July 1989
JMfl James M. Montgomery
Consulting Engineers. Inc.
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SECTION
SECTION 1
INTRODUCTION
This document is a proposal by James M. Montgomery, Consulting Engineers. Inc.
(JMM) to provide consulting engineering services to develop a wastewater rate/revenue
program commensurate with State Water Resources Control Board requirements.
PROPOSAL STRUCTURE
This JMM proposal is presented in six sections. Besides this introduction section, the
methodology tasks and schedule for completion are outlined in Section 2. The project
team is presented in Section 3 and capabilities and related experiences in Section 4. The
information JMM will need from the City is listed in Section 5. Section 6 describes the
schedule of fees and conditions.
KEY ELEMENTS
Financial Plan
The JMM study will focus on the present financial position and project the future position
over a five year planning horizon. Increases in population, new commercial and
industrial development, financing and capital improvements will be considered in
projecting the future financial position. From these projections, financial requirements
will be determined.
Rate Study
JMM will review and evaluate the existing charge system. Based on these financial
requirements, an equitable set of rates will be recommended that will be, easy to
Inventory of Assets
JMM will work with the City to complete and upgrade the list of wastewater collection
and treatment facility assets, which the City has largely performed already. Upon
completion of this list of assets, JMM will perform a valuation of the system's assets.
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SECTION
SECTION 2
METHOD OF APPROACH AND SCHEDULE
Based on many years of experience, JMM's project approach is well organized and will
lead efficiently and quickly to the desired results. Our approach is reflective of the data
available, of past experience, and of management requirements as well as our
understanding of data availability and timing requirements. The project is identified by
the tasks shown below:
Task Group Subject
1 Meetings
2 Data Compilation and Review
3 Data Projection
4 User Charge and Fee Development
5 Inventory/Valuation of Assets
6 Reports and Deliverables
These tasks are described below.
TASK GROUP I - MEETINGS
Ongoing communications are of prime importance to successful planning. We prefer
a "no-surprises" relationship with the City and promote frequent and written oral
communication. We propose the following meetings:
Task I.I - Kick-Off Meeting
The kick-off meeting will be convened within a week of Notice to Proceed. Prior to
the kick-off meeting, JMM shall provide a detailed listing of the data needed from
the City. The kick-off meeting will have the following agenda:
1. Introduction of City staff and JMM study team.
2. Exchange of data with discussion of possible data holes.
3. Discussion of policy consideration and restraints on:
o capital financing
o growth projections
o rate structure
o budget schedule and needs
4. Adjustments or refinements to schedule and scope.
-2-
Task 1.2 - Mid-course Meeting
This meeting will be held approximately 30 days into the project study. Tables
showing the results of data compilation and rate review will be presented to show
status of the study.
Task 1.3 - Draft Review Meeting
A meeting will be held to review and address City staff comments on Draft Report.
Task 1.4 - Workshop Meeting
This meeting will be held with the City Manager and Assistant City Manager. JMM
will present the recommendations of the study and answer questions regarding any
aspects of the study.
Task 1.5 • City Council Meeting/Public Hearing
JMM will make a formal presentation to City Council at a public hearing and will
answer any questions that the Council or public may have about the financial plan
and wastewater rate study. JMM will assist preparing the staff report to Council, if
requested.
TASK GROUP 2 - DATA COMPILATION AND REVIEW
TASK 2.1 - Review Current and Historical Revenues and Reserves
Existing data and reports regarding the City's current rate and revenue structure and
reserve balance will be reviewed if available. The analysis will include property
taxes, interest income, and revenues from standby charges, service charges, service
connection fees, regional connection fees, and any other revenue sources reported in
the City's audit or budget reports. It is understood that the City will identify reserve
funds as encumbered or unencumbered, operational and capital as the case may be.
Task 2.2 - Review Current Operating Budget and Historical Expenditures
City expenditures and those from the Encina Water Pollution Control Facility for the
past five years will be analyzed and summarized in a form suitable to JMM for data
projections and allocations in subsequent tasks. The City shall also provide budgeted
expenses for 1989-90.
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Task 2.3 - Review User Data
City staff will provide data regarding the numbers of accounts by user classification
for review by JMM. The user classifications will be as follows if possible:
1A. Single family residential
IB. Multiple family residential and mobile homes (number of units)
II. Commercial with low pollutant loadings
III. Commercial with medium pollutant loadings
IV. Commercial with high pollutant loadings
V. Schools
VI. High-volume users
Low pollutant loadings are generally defined as those whose combined BOD
(biochemical oxygen demand) and SS (suspended solids) strength is less than 400
mg/1. Medium loading is similarly defined at combined strength of between 400 to
1000 mg/1 and high loading for strength greater than 1000 mg/1. High volume users
are those using more than 25,000 gallons per day (gpd). Section 5 presents the
different types of commercial users.
Task 2.4 - Review Wastewater Flow Equivalent Dwelling Unit (EDU) Data
City staff will provide last year's water use data and any known wastewater quantity
data for each of the non-residential user classifications for review by JMM. Data on
EDlTs for existing non-residential users should also be provided. Infiltration and
inflow data should be provided if available.
Task 2.5 - Review Current Charge System
Current sewer service charges, !••••••(, and lateral installation charges will
be reviewed'evaluated for adequacy and equity.
TASK GROUP 3 • DATA PROJECTION
A five-year financial planning period will be used to make projections. It is
recognized that financial figures such as revenues and expenses and related operation
figures like quantity of wastewater generated can be projected with sufficient
accuracy only for a few years. The model will be set up so that projections for
additional years can be accomplished easily.
Task 3.1 - Project User and Wastewater/EDU Data
Using growth figures received from the City staff, the number and types of services,
resulting wastewater generation over the planning period will be projected. Data in
the Master Plan may be updated at this stage.
Task 3.2 - Project Revenue Sources
The various revenue sources currently funding the City's operations will be reviewed
and projected.
Task 3.3 - Project Operations and Maintenance Costs
Each expenditure item will be reviewed and projected separately. Costs such as
power will be projected using the latest available cost and energy indices and
economic forecasts. Changes, if any, in O&M costs due to changes in number of
users, capacity or because of regulatory requirements will be considered. Treatment
costs from the Encina Water Pollution Control Facility will be obtained.
Task 3.4- Review Capital Improvement Plans
Capital improvement plans as described in the City's Master Plan will be reviewed.
Expansion costs of the Encina Water Pollution Control Facility will be obtained and
reviewed with the City Engineer. Cash requirements associated with capital
improvement plans for the planning period will be reviewed with City staff.
TASK GROUP 4 - USER CHARGE AND FEE DEVELOPMENT
TASK 4.1 - Allocate Revenue Requirements
The revenue requirements determined by projecting the fiscal data in Task 3.2 will
be allocated as to flow, BOD, and suspended solids.
Task 4.2 - Calculate User Charges
JMM will provide an alternative to the existing method of charges based on EDU's.
This alternative method will be based on flow for commercial and non-commercial
users. Allocated costs of operation, maintenance and replacement will be used to
formulate a fair and equitable user charge system. The allocated costs will be
divided by the appropriate use measures (e.g. numbers of accounts, gallons of flow
or pounds of BOD and suspended solids) to obtain unit costs which wUl then be used
to determine wastewater ratesfor each customer class.
« t
Task 4.3 - Recommend Rates and Financial Plan f
Based on the calculations and City policies, an acceptable set of rates and plans to
meet City's goals will be prepared. The rates will be structured taking into
consideration bond coverage requirements.
TASK GROUP 5 - INVENTORY AND VALUATION OF ASSETS
JMM will work with the City to compile an extensive list of assets that comprise the
City's wastewater system. Valuation of these assets will then be performed using two
methods—reproduction costs new (RCN) and reproduction costs new less depreciation
(RCNLD). Both of these valuation parameters will be useful to the City.
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TASK GROUP 6 - REPORTS AND DELIVERABLES
Task 6.1 - Mid-Course Report
The report for the mid-course meeting will be a compendium of tables, without text,
showing the effects of various alternatives on rates. Five copies will be provided.
Task 6.2 - Draft Report
Prior to the workshop, a draft report will be produced for critical review by staff and
JMM. Five copies of the draft report will be provided.
Task 6.3 - Final Report
Following receipt of comments on the draft report, the final report will be produced.
It will include complete textual information supporting the many tabulations and
graphics. Ten copies will be provided.
A computer diskette including the rate calculation model on Lotus Symphony or
Lotus 123 can be provided.
Task 6.4 - Ordinance Revision
JMM will propose appropriate changes in the City's rate ordinances, corresponding
to recommendations made in the final report.
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SCHEDULE
JMM has an excellent reputation for meeting its schedule requirements. We recently completed
an in-depth revenue program for the City of Burbank with a very tight schedule. We will meet
the following schedule for this study.
Notice to Proceed
Kickoff Meeting
Mid-Course Meeting
Draft Report
Review Meeting
Final Report
August I, 1989
August 8; 1989
September 8, 1989
September 21, 1989
September 26, 1989
September 29, 1989
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SECTION 3
SECTION 3
PROJECT TEAM
It is the policy of JMM to staff ail projects from our own organization of experienced
professionals. All projects are carried out utilizing a team approach with
coordination between the client and the team maintained at all times. A structured
team is assembled from our staff designed to provide excellent management, review,
and analytical abilities combined with proven experience.
A concise summary of qualifications of the key project team members is presented in
the following paragraphs. Detailed education and experience biographies for all the
project team members follow.
PROJECT MANAGER - RICHARD W. HOWELL
The major responsibility of the project manager is to provide the overall supervision
and administration of the project. Mr. Howell's duties as the project manager would
include ensuring that qualified staff are available for the project, directing the project
approach, reviewing the quality of the finished project, monitoring its progress and
meeting deadlines and assuring cost control of the total effort.
Mr. Howell is JMM's Financial Studies Division Manager. He has been involved
with financing and rate studies for over ten years. Mr. Howell's education is in
management as well as civil engineering and he has served as project engineer and/or
project manager on over fifty water and wastewater rate studies and financing
analyses.
PROJECT ENGINEER - JAMES R. LESERMAN
Mr. Leserman has extensive work experience in the financial, budgetary and planning
aspects of public works operations. He has analyzed costs and determined rates as
part of comprehensive studies many times including most recently for two wastewater
agencies in Southern California. Mr. Leserman worked for several years in a
planning and financial role for the County Sanitation Districts of Los Angeles
County. He holds advanced degrees in both engineering and finance.
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COST ESTIMATING - WILLIAM T. MCGIVNEY
Mr. McGivney is JMM's chief costs estimator. He provides cost estimating and
economic analytical assistance based on years of practical experience with
construction planning techniques. He is responsible for updating all price indexing
and unit price changes relating to component materials common to water and
wastewater construction. He is ideally suited to take a lead role in the valuation of
the City's wastewater system assets by preparing accurate and valid cost estimates.
PROJECT SUPPORT - SUDHIR D. PARDIWALA
Mr. Pardiwala will provide support for this project. Mr. Pardiwala is currently
completing water and wastewater rate studies for Del Mar. He has performed
financial and institutional analyses including water and wastewater rate studies for
several other municipal clients. He has several years of project economic and
financial analysis experience with JMM and other engineering firms. Mr. Pardiwala
holds degrees in engineering and business administration.
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RICHARD W. HOWELL
EDUCATIONS M.S., Environmental Engineering, Stanford University
B.S., Civil Engineering, Stanford University
B.A., Management Engineering, Claremont McKenna College
REGISTRATION: Civil Engineer in California and Washington
Professional Engineer in Arizona, Montana and Nevada
Diplomate, American Academy of Environmental Engineers
SUMMARY:
Mr. Ho well is manager of JMM's Financial Studies Division. He has over 15 years of
experience in financial and institutional studies and in civil and environmental
engineering. Mr. Howell's managerial and engineering experience has had a nationwide
perspective with projects located in the states of Arizona, California, Idaho, Louisiana,
Montana, Nevada, New York, Oregon, Utah, Pennsylvania, Washington, West Virginia and
Wyoming. Mr. Howell has overseas experience in Jamaica and Sudan.
EXPERIENCE:
JAMES M. MONTGOMERY, CONSULTING ENGINEERS, INC.
As manager of the Financial Studies Division, Mr. Howell is responsible for the firm's
financial and institutional studies prepared throughout the Southwest Region, and is a
regular participant in such work in the rest of the United States and abroad.
Mr. Howell has been with JMM more than 13 years. His experience includes water and
wastewater cost of service and rate studies, including detailed connection fee evaluations;
financial planning, economic feasibility and financing alternatives analyses; institutional
and utility management studies; and value appraisals for acquisition and depreciation.
Mr. Howell has been responsible for the financial content of many official statements
associated with public works debt financing. He has served as an expert witness in
Superior Court. He has participated in the formation of special districts and has been
responsible for assessment engineering on several improvement district projects ranging in
size up to $85 million. Mr. Howell has prepared water system rules and regulations, sewer
use ordinances and has evaluated several major intermunicipal utility service agreements,
both as newly proposed and for negotiation of changes to existing agreements. Mr. Howell
has participated in over 50 grant-funded projects under various state and federal
assistance programs and has been instrumental in successfully interpreting regulatory
procedure and grantsmanship protocol for many clients. Extensive utilization of computer
methods has been incorporated into much of Mr. Howell's financial and institutional
experience including financial statement modelling and pro forma forecasting, alternative
financing evaluation, assessment spreads, cash flow/reserves optimization and present
worth economic analyses.
Mr. Howell's financial and institutional management experience grows from a strong
foundation as a water and wastewater engineer. As a sanitary engineer he was responsible
for many water and sewage pipeline and pumping projects, water and wastewater
treatment projects, ocean engineering and master planning. Mr. Howell has construction
experience including resident engineering/inspection, construction management planning,
construction administration and claims negotiation.
RICHARD W. HOWELL (CONTINUED)
CONSULTING FIRM IN WASHINGTON STATE
Mr. Howell participated in the facility planning, scheduling, environmental impact
assessment preparation, design, cost estimation, construction inspection, and preparation
of operation and maintenance manuals for several sewerage and wastewater treatment
projects. He authored much of the wastewater section of a significant water resources
study. He prepared assessments for newly formed local improvement districts, and
performed underwater inspections of the installation of four ocean outfalls.
ORGANIZATIONS: American Academy of Environmental Engineers
American Public Works Association
American Society of Civil Engineers
American Water Works Association
Government Finance Officers Association
Water Pollution Control Federation
PUBLICATIONS/PRESENTATIONS:
Howell, R.W., "Developments in Public Works Financing, An Overview" presented at
Montgomery Engineers Annual Seminar, "Plant Improvements in an Era of Funding
Cutbacks," April 24, 1983.
Howell, R.W., "History of Public Works Financing in California," presented to Southern
California Water Utilities Association, August 19, 1983.
Howell, R.W.; Chapman, D.F., "Small Agencies' Troubles with Federally Funded Projects,"
presented to American Public Works Association, Nevada Section Conference, October
1983.
Howell, R.W., "Wastewater Law and Regulation in the United States and California,"
presented to the Environment Committee of the World Federation of Engineering
Organizations, May 1984.
Howell, R.W., "State and Local Government Finance," AWWA Pacific Northwest Section
Annual Conference, May 1985.
JAMES R. LESERMAN
EDUCATION: M.B.A., Finance, University of Southern California
M.S., Environmental Engineering, University of North
Carolina
B.S., Engineering, Northwestern University
REGISTRATION: Civil Engineer in California
SUMMARY:
Mr. Leserman has experience in the financial, budgetary and planning aspects of
public works operations. He has extensive experience in all disciplines within
environmental engineering including water and wastewater treatment, solid
waste management, and air pollution control.
EXPERIENCE:
JAMES M. MONTGOMERY, CONSULTING ENGINEERS, INC.
Mr. Leserman is a Supervising Engineer, specializing in financial planning and
analysis, water and wastewater rate studies, system appraisals, economics, solid
waste management systems, and organizational assessments and evaluations. He
performed water rate studies and financial analyses for the Cities of Napa and
Whittier. He undertook a wastewater rate study for the Dana Point Sanitary
District. He participated in a study evaluating the efficiency of a
physico-chemical wastewater treatment plant in Niagara Falls, New York, by
analyzing operations and maintenance costs, identifying capital requirements,
and developing a capital management plan. Mr. Leserman worked with a local
municipality to appraise the public ally-owned water works, and to find a buyer
for the system. He contributed to an evaluation of a sanitary landfill operation
in Utah by providing financial, economic, and cost analyses. Mr. Leserman
provided financial analysis to a water and wastewater utility bond issue in
Southern Florida. Mr. Leserman has served as a liaison between the City of Los
Angeles and contributing agencies in the negotiation of new wastewater system
service contacts.
COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY, CALIFORNIA
Mr. Leserman was responsible for developing and computerizing the $90 million
annual budget for the Districts' Solid Waste Management Department. He
determined the revenue and fee requirements for the solid waste management
and energy recovery operations, and prepared and negotiated the agency's
equipment lease-purchase financing arrangements. He tracked relevant state
and federal legislation and initiated the use of a computerized tracking system,
enabling quicker response time to legislative items. Mr. Leserman contributed
to environmental impact reports for landfills and refuse to energy facilities.
JAMES R. LESERMAN (CONTINUED)
As a field engineer, Mr. Laser man tested and started up new equipment
associated with secondary treatment facilities, authored equipment training
manuals, and implemented a hazardous materials handling system.
SMALL CONSULTING FIRM, SANTA MONICA, CALIFORNIA
Mr. Leserman inspected and evaluated industrial facilities for compliance with
applicable air quality regulations.
MAJOR ARCHITECT/ENGINEERING FIRM, CHICAGO, ILLINOIS
Mr. Leserman designed control and safety systems, evaluated pollution control
equipment, and performed scientific studies for this large firm specializing in
utility power plant design.
ORGANIZATIONS: American Society of Civil Engineers
American Water Works Association
Government Refuse Disposal and Collection Association
Southern California Waste Management Forum
Southern California Water Utilities Association .
Water Pollution Control Federation
WILLIAM T. McGWNEY
EDUCATION: M.S., Resource Economics, University of Rhode Island
B.S., Economics, California Polytechnic University
SUMMARY:
Mr. McGivney provides highly specialized cost estimating services and economic
analytical assistance to JMM engineering projects. This expertise is based on years of
practical experience with construction planning techniques. Since joining our firm he has
been involved with review and implementation of state-of-the-art computer-assisted cost
estimating programs at JMM. His experience includes in-depth financial and accounting
analysis as controller for a major manufacturing firm.
Mr. McGivney is also responsible for the complete project scheduling effort in support of
JMM engineering projects. This support takes the form of both production work and
educational seminars throughout the many regional offices of JMM. He has published an
in-house series on CPM scheduling which has been video-taped and made available for the
indoctrination of new and experienced JMM engineers. The main thrust of this scheduling
production effort is CPM scheduling, delay claims analysis, and construction management
and is carried out by an expert staff of engineers and technical support personnel.
EXPERIENCE:
JAMES M. MONTGOMERY, CONSULTING ENGINEERS, INC.
Senior Schedule Analyst: Mr. McGivney has been responsible for establishing and
developing the scheduling effort at JMM. He has developed the Project Controls Master
Schedule system for all in-house design production work in the Southwest Region. He is
responsible for primary schedule submittal review for all Construction Management
Services projects, and in this capacity reviews the project specification and contract
submittals.
Senior Cost Estimator: Mr. McGivney is assigned to the firm's Financial Studies Division
as principal estimator. He is responsible for the preparation of final cost estimates on
water and wastewater treatment plants, pumping stations, reservoirs, transmission
pipelines, operations and control buildings, and other associated plant facility designs
produced by the firm. In this capacity, Mr. McGivney provides updating of all price
indexing and unit price changes relating to component materials common to water and
wastewater construction. He is also directly involved with the firm's various computer
models used in the analysis of treatment plant costs and project cost optimization
developed to assist project engineers with both preliminary and detailed cost estimates as
well as alternative design selection. He recently completed an estimate for a JMM
designed project (in joint venture with another firm) with the City of Los Angeles
involving more than two thousand contract drawings and over seventeen thousand pages of
specifications with an estimated construction cost in excess of $200 million.
MAJOR MANUFACTURING FIRM, LOS ANGELES
In the role of plant controller, Mr. McGivney was responsible to corporate officers for
continuous detailed analysis of plant operating costs and profit analysis for all product
lines. He maintained a current data base for the computer inventory system (M.LS.)
including reconciliation of printout reports to verify system integrity.
WILLIAM T. McGIVNEY (CONTINUED)
PRIVATE BUSINESS
Mr. McGivney spent a number of years in the private business sector in the construction
market. He spent two years as general manager of two cabinet and inillwork companies
performing all management functions, all cost estimating, and the fixing of profit "margins
for the entire product spread. Mr. McGivney was self-employed for several years in
commercial and residential construction. He operated as a general contractor and -vas
directly responsible for estimating, project management, and coordination of all partici-
pating trades.
SUDHIR D. PARDIWALA
EDUCATION: M.B.A., Finance/Accounting, UCLA
M.S., Chemical Engineering, Arizona State University
B.S., Chemical Engineering, Indian Institute of
Technology, Bombay
REGISTRATION: Chemical Engineer in California
SUMMARY:
Mr. Pardiwala has extensive expertise in water and wastewater utility cost
accounting, budgeting, and valuation, financial and revenue planning, assessment
engineering, and has completed numerous water and wastewater rate studies for
utilities. He has developed and utilized computer models to conduct the
financial evaluation and studies, and has developed models of activity systems
for analytical analysis. His engineering education and background provides Mr.
Pardiwala with an excellent basis for financial studies of public and municipal
utilities.
EXPERIENCE:
JAMES M. MONTGOMERY, CONSULTING ENGINEERS, INC.
Supervisory Engineer: Mr. Pardiwala has conducted and completed financial
analyses including water and wastewater rate studies, connection fee
evaluations, financial planning and economic feasibility studies for numerous
agencies. They include the Cities of Downey, Rialto, Malibu, San Fernando,
Sweetwater, Burbank, and Victor Valley County Water District, all in California.
These studies involved a complete analysis of the client's budgeting and cost
systems, and evaluation of financing alternatives. Developed rules and
regulations governing utility operations and sewer use ordinances. Responsible
for financial data included in official statements issued for purpose of public
works debt financing. Other projects included alternate methods of financing,
formation of special districts ranging in size up to $85 million, the preparation of
assessment charges for inclusion on County tax rolls and master planning of
water facilities for the City of Riverside.
CONSULTING ASSIGNMENTS, LOS ANGELES, CALIFORNIA
As an independent consultant, Mr. Pardiwala carried out a market survey and
performed financial analysis including cash flow, financing, costing, budgeting,
valuation and risk analysis.
SUDH3R D. PARDIWALA (CONTINUED)
MAJOR ENGINEERING, CONSULTANT AND CONSTRUCTION FIRM IN
LOS ANGELES, CALIFORNIA
Senior Engineer: Designed, engineered and performed economic analysis for
process equipment. Responsible for specifications and purchase of equipment.
Developed cash flows in coordination with cost engineering. Modeled and
developed computer programs to simulate systems.
CONSULTING ENGINEERING FIRM IN LOS ANGELES, CALIFORNIA
Research Engineer; Modeled and developed computer programs to simulate
processes and process equipment. Provided technical support to clients. Worked
on projects involving water treatment for commercial power plants.
ARIZONA STATE UNIVERSITY, TEMPE, ARIZONA
Mr. Pardiwala's thesis for his master's degree was on ultra purification of water
and involved the design of a unit incorporating reverse osmosis, deionization,
ultrafiltration and activated charcoal filters.
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SECTION
SECTION 4
RELATED EXPERIENCE AND REFERENCES
JMM has prepared numerous rate and financial studies involving wastewater systems. Our
staff provides many years of experience in financial analysis and rate investigations. JMM
has completed well over 150 analytical and statistical financial studies of water and
wastewater systems.
In addition to studies which dealt primarily with the determination of proper rate schedules,
many other investigations and studies involving cost determinations which have a related
effect on utility rates have been completed. These include master plans and feasibility
studies, analyses of bond issue costs, water reclamation studies, water resource studies,
water storage investigations, water treatment studies, wastewater collection, treatment,
disposal and reclamation studies assessment engineering, as well as the effect on rates when
utility properties are purchased or sold.
During the last two years, as interest rates came down, interest in refinancing and new
financing peaked and the financial studies group prepared financial plans for several cities
and agencies in California and the USA. These projects included rate studies and
refinancing existing issues as well as preparing plans, estimating costs and economics and
preparing official statements for new issues.
Most of JMM's business is repeat business, i.e., business from satisfied clients who prefer to
deal with us because of our responsive and timely assistance. A case in point is the City of
Burbank. The financial studies group completed a rate study involving user charges and was
then retained to prepare a financial plan to finance expansion of wastewater facilities. This
shows the on-going relationships we build with our clients.
The following list gives references of several currently or recently completed wastewater rate
studies and bond studies. We invite the City to contact any of these references to discuss
our rate work. This list is followed by descriptions of some of JMM's projects and a
representative list showing names of some of our other clients.
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REFERENCES
VVastewater Rate Studies
Dana Point Sanitary District
1989 Wastewater Rate Study
Mr. Sherman Salonen
General Manager
(714) 496-9322
Wastewater Flow : 2 mgd
City of San Fernando
1988 Wastewater Rate Study
Mr. Donald Penman
City Manager
(818) 898-1201
Wastewater Flow : 2 mgd
Elsinore Valley Municipal Water District
1987 Wastewater Rate Study
Mr. Robert Modrich
Controller
(714) 674-3146
Wastewater Flow : 3 mgd
Capistrano Beach Sanitary District
1989 Wastewater Rate Study
Mr. Dennis A. Erdman
Manager
(714) 496-9247
Wastewater Flow: 1 mgd
City of Del Mar
1989 Water and Wastewater Rate
Study
Ms. Gloria Curry
City Manager
(619)755-9313
Wastewater Flow : 1.8 mgd
City of Burbank
1986 Wastewater Rate Study
Mr. Paul Thyamagondalu
Supervising Engineer
(818) 953-9530
Wastewater Flow : 17 mgd
City of Los Angeles
1988 Wastewater Rate Implementation
Mr. Donald Smith
Wastewater Program Director
(213)322-3131
Wastewater Flow : 440 mgd
Financial Plans
City of Riverside
1985 Water Bond Study
Mr. Thomas K. Clarke
Utilities Administrative Officer
(714) 787-7502
County of Los Angeles
1987 Financial Plan for Malibu
Mr. Brian Scanlon
Superintendent, Sewer Maintenance
Division
(213) 738-2534
City of Upland
1986 Water Revenue Study
Mr. Larry Ditty
Water Department Manager
(714) 982-1352
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CITY OF BURBANK
The City of Burbank had been using system development charges to fund operations and
running a deficit in their budget. The State Water Resources Control Board required the
City to meet EPA's revenue program guidelines and recommended JMM to develop the
City's wastewater revenue program.
JMM successfully performed a user charge study which included an analysis of the City's
wastewater rate structure. This included a detailed study of historical water consumption
data and infiltration and inflow data. Analysis showed that revenues collected from high
strength users was totally inadequate. Rates were structured to take into account the
wastewater flow and the strength of the City's large commercial and industrial accounts. In
addition because of large capital expenditures at Hyperion treatment facilities, JMM
designed a lifeline rate for the City's senior citizens so that they would not be unduly
burdened by high sewer rates. A program of charges for inspections of industrial waste
discharge permitees was developed to reflect cost of service. In addition a system of
reserves was designed to prevent commingling of funds from system development charges,
from restricted bond accounts and from operations. JMM made presentations to the City
Council and at public hearings to ensure smooth passage of the rate increases. The revenue
program was approved by the SWRCB. JMM also drafted an ordinance to reflect the
recommended changes. One of the features of this ordinance provided staff the flexibility to
implement rate increases necessitated by inflation without approaching Council for approval.
As part of this study, JMM provided a rate model on Lotus Symphony to the City. This
model is being used to determine rates for subsequent years.
As a follow up to the user charge study, JMM was retained to perform a study on the
system development charges. The City treats part of its wastewater at its own facilities and
part at the Los Angeles Hyperion Treatment plant. The City's facilities needed to be
expanded to meet increased demand. JMM evaluated the costs of increase in treatment
capacity and recommended system development charges for the residential and various
commercial and industrial users.
Following the above work, JMM provided a financial analysis study to be included in the
City's Official Statement for a proposed bond sale to finance construction of the City's plant
expansion. This included an analysis of bond sizing, estimating reserves, bond issues costs,
coverage requirements and methods of increasing rating and reducing interest costs.
JMM also performed an engineering feasibility study and evaluated the economics of water
conservation by using reclaimed water to irrigate the City's parks, golf courses, and for
freeway landscaping and industrial uses such as plating.
CITY OF CULVER CITY, CALIFORNIA
JMM has been performing Culver City's annual wastewater rate review update for the last
eight years. This consists of a review of the annual expenditures including the costs of
operation and capital expenses at Los Angeles and the operation and capital costs of Culver
City. These are integrated to develop a new set of rates. This year because of the large
capital improvements at Los Angeles Hyperion treatment plant, the user charges increased
by 300 percent. JMM wrote a report, presented to Council, to ensure smooth passage of
this large rate increase.
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CITY OF RIALTO, CALIFORNIA
The City of Rialto was required by state regulators to provide tertiary treatment for their
effluent discharged into the Santa Ana River. JMM performed an engineering study for
preliminary design, estimated the costs and performed a financial analysis to project
wastewater services charges and connection fees for five years. In addition, JMM evaluated
the City's financial resources and recommended sale of revenue bonds to finance plant
construction. This included determining bond coverage, interest rate, and issue costs.
COUNTY OF LEHIGH, PENNSYLVANIA
Wastewater in Lehigh County, Pennsylvania, is generated in a number of different cities and
townships, is conveyed through interceptor sewers owned by several other agencies, and is
ultimately treated in a regional plant operated by the City of Allentown. During a recent
rate study, JMM reviewed the agreements governing the distribution of treatment capacity
and the allocation of treatment and transportation costs to the various signatory agencies. A
computer spreadsheet model of the institutional structure was created and then calibrated to
historical cost, flow and pollutant loading data to ensure the accuracy of the rate and cost
allocation calculations.
The model was used to identify cost subsidies caused by the current institutional structure
and to project the impacts of a new industrial waste pretreatment plant on the rates and
costs of the signatories. The model was also used during negotiations between the County
and two large industrial dischargers over the industries' contributions toward the cost of the
plant.
The rate model was installed in the County's microcomputer for use in future negotiations.
To assist County personnel in operating the model, JMM prepared an operating manual and
conducted a training session.
CITY OF SAN FERNANDO, CALIFORNIA
JMM was retained to prepare a water rate study, wastewater rate study, and sewer capacity
study to estimate ultimate sewer discharge from the City. The primary source of water
supp'ly for the City was groundwater. To meet peak demands that exceed the existing water
rights, water is purchased from the Metropolitan Water District of Southern California. The
rate study recommended using a pass through charge from users to recover the MWD water
purchase costs. The rate study also developed a rate schedule to fund the $3 million capital
improvement program.
Wastewater treatment and disposal services were provided by the City of Los Angeles. The
wastewater rate study provided a rate schedule to fund the City's portion of the Los Angeles
treatment plant improvement program over a five-year period. In addition, the rate
schedule was developed to provide sufficient funds to purchase additional capacity at the
improved treatment facilities.
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CITY OF FOLSOM, CALIFORNIA
JMM completed a water and sewer rate study for the City of Folsom following the
annexation of the Folsom-South area. The annexation procedures increased the geographical
extent of the City by a factor of two. The rate study was completed to determine if
revenues generated by the new users would be adequate to fund the additional costs. JMM
worked with City staff to develop water and wastewater capital improvement programs. The
rate study also considered providing funds to repay past loans from the General Fund to the
Water Department. Based upon the comparison of the cost projections to the revenue
sources, JMM determined that the existing rate structure was not adequate. JMM worked
with the City staff to develop a rate structure which had minimal impact on special user
groups. The wastewater rate structure was modified to be consistent with the structure used
by the regional wastewater agency, in accordance with Clean Water Grant guidelines.
CITY OF CORONA, CALIFORNIA
JMM conducted a financing feasibility study for the City of Corona, that resulted in a
successful bond issue authorization. JMM also was retained to provide the City with a water
service rate study and subsequent updates. The study recommended a change in the City's
rate structure from a minimum charge with water allowances to a service availability charge
without water allowance. The service availability charge was designed for periodic update
using specific cost functions that were not related to the amount of water used.
CITY OF DEL MAR, CALIFORNIA
JMM was selected to evaluate the City's system of fees and charges associated with the
water and wastewater services. The City serves residential and commercial customers as
well as the County Fairgrounds which includes the Del Mar Racetrack. The Racetrack
dominates the water and wastewater demands. JMM developed a report and determined a
fair and equitable charge for the Fairgrounds which were benefiting from an inequitable rate
structure as compared to the balance of the City's other users. The study also evaluated
alternative rate structures to eliminate the City's deficit in the water and wastewater
accounts.
CITY OF SCOTTSDALE, ARIZONA
JMM completed a financial study of utility operations for the City of Scottsdale Municipal
Utilities Department. This study involved an evaluation of present water and sewer rate
structures; an evaluation of connection and development fees; and a determination of water
and wastewater revenue requirements, by source, for a five-year period. Also included in
the study are determinations of appropriate cost allocation methodologies and
recommendations regarding revisions to accounting and administrative practices. Allocations
of direct and indirect costs are made to properly define the actual costs for providing the
water and sewer system services. The final product of the study included recommendations
and formula for equitable water and sewer rates, fees chargeable to new development, and
financing plans (including methods and policies). To ensure a successful and timely
completion of the study, seven meetings were held with City Council, City Staff, and in
public workshops throughout the study. All of the recommendations resulting from this
extensive study were adopted by the City Council and implemented by the Municipal
Utilities Department.
CITY OF SKAGWAY, ALASKA
The City of Skagway, Alaska, selected JMM to prepare a financial and revenue plan for the
wastewater, water, and solid waste disposal systems. The adoption of an equitable system
of rates and user charges pursuant to criteria developed in regulations issued by EPA is
required as a condition of receiving federal and state grant funds under PL 92-500. The
report included the development of an annual budget to recover costs of operation,
maintenance, capital replacement, and debt service for the water and wastewater systems. A
comparison of monthly rates which would include recovery of debt service was made with
rates providing for collection of the debt service. A review of the present solid waste
operation and alternative methods of improving the system was accomplished. Estimated
annual budgets were presented for four alternatives of disposal including incineration;
development of the sanitary landfill site; transfer by the City of Skagway to Haines. Alaska
for disposal by a private firm; and the collection, transfer, and disposal by a firm at Haines.
Sanitary landfill site development appeared to be the most economical alternative but. due to
the difficulty in locating a suitable site, the report recommended that the City contract with
a private firm for collection, transfer, and disposal in Haines until a long-term alternative
can be determined. An ordinance to provide for rules and regulations to assure smooth
operation of the City utility systems and schedule of recommended rates and fees to be
charged and collected for utility service in the City of Skagway were also included.
DANA POINT SANITARY DISTRICT
Dana Point Sanitary District was using ad valorem taxation to fund the operating costs of its
sewer services. JMM revised their revenue program to meet federal and state guidelines and
helped implement the program. JMM prepared their annual roll to collect sewer service
charges along with property taxes.
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REPRESENTATIVE LIST OF FINANCIAL
ANALYSIS AND RATE STUDIES
American Potash and Chemical Corporation
Azusa, California, City of
Azusa Irrigating Company
Azusa Valley Water Company
Baker, Oregon, City of
Basic Management, Inc.
Boise, City of
Broward County, Florida
Burbank, California. City of
California Domestic Water Company
Camarillo Sanitary District
Canby, Oregon, City of
Capistrano Beach Sanitary District
Charleston, West Virgina, City of
Chino Basin Municipal Water District
Chino, California, City of
Clark County, Nevada (Las Vegas)
Compton, California, City of
Contra Costa County Water District
Corona, California, City of
Costa Mesa County Water District
Covina, California, City of
Covina Irrigating Company
Crestmore Village Water Company
Cucamonga County Water District
Culver City, California, City of
Dei Mar, California, City of
Dominguez Water Company
Downey, California, City of
El Centre, California, City of
El Monte, California, City of
Elsinore Valley Municipal Water District
El Toro Water District
Escondido Mutual Water company
Fairfield, California, City of
Glendora Irrigating Company
Guadalupe, California, City of
Helena, Montana, City of
Idaho Department of Health & Welfare
Jackson, Wyoming, City of
La Habra Heights County Water District
La Habra Heights Mutual Water Company
Laguna Hills Utility Company
Las Vegas Valley Water District, Nevada
Lauderhill, Florida, City of
Los Angeles, California, County of
Lytle Creek Water and Improvement Company
Missoula, Montana, City of
Mojave Water Agency
Monrovia, California, City of
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REPRESENTATIVE LIST OF FINANCIAL
ANALYSIS AND RATE STUDIES
(Continued)
Montebello, California. City of
Mountain Properties, Inc.
Murphy Ranch Mutual Water Company
Nevada Irrigation District
North Cucamonga Water Company
North Lauderdale, Florida
Opa Locka, Florida, City of
Pajaro County Sanitation District
Palm Springs Water Company
Pasadena, California, City of
Pomona, California, City of
Pomona Valley Water Company
Rancho California, City of
Rancho California Water District
Rancho Las Posas Water Company
Redlands, California, City of
Rialto, California, City of
Rohnert Park, California, City of
Sacramento, California, City of
San Buenaventura, California, City of
San Dieguito Irrigation District
San Dimas, California, City of
San Dimas-Charter Oak Domestic Water Company
San Dimas Water Company
San Fernando, City of
Safford, Arizona, City of
Santa Fe Irrigation District
Santa Rosa Ranches Water District
Scottsdale, Arizona, City of
Simi Valley County Sanitation District
Skagway, Alaska, City of
South Gate, California, City of
South Pasadena, California, City of
Stockton East Water District
Sweetwater Authority
Thousand Oaks, California, City of
Torrance, California, City of
Transamerica Development Company
Turner Ranches Water Company
Tustin Water Works
Upland, California, City of
Vallejo County Flood Control and Sanitation District, California
Vernon, California, City of
Victor Valley County Water District
Walt Disney World, Florida
Watsonville, California, City of
West Covina, California, City of
Yorba Linda County Water District
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SECTION
SECTION 5
WASTEWATER RATE STUDY DATA REQUIREMENTS
In order to complete the study within the specified time limits, it is expected that the City
will provide the following information during the kick-off meeting. The City has already
collected much of the information required. Our discussions with staff suggest there
should not be any problem gathering the remaining information.
1. Audited financial reports for last four years and proposed budget for coming year.
Please provide
a. Budget details with line item explanations
b. Breakdown of costs between sewer system and treatment and
administration.
c. Depreciation schedule
d. Existing reserves
e. Debt servicing requirements, bond covenants
f. Insurance costs.
g. Name of power company
Future capital expenditures
2. Number of multi-family units.
3. Expected future growth pattern or general plan.
4. Typical wastewater strengths if known for various users.
5. List of commercial, industrial and institutional users with water usage for last year.
These need to be classified into various categories as shown in the accompanying
table on the following page.
6. Total wastewater flow. Provide infiltration and inflow data if available.
7. Total Encina Wastewater Treatment Facility capacity
7. Previous reports including master plan updates and previous revenue programs and
rate studies.
8. Current fee ordinance.
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TYPICAL WASTERWATER STRENGTHS BY USER CLASSIFICATION
Users BOD
mg/1
SS
mg/1
BOD+SS
mg/1
Group I Residential
Typical Domestic 175 175 350
Group II Commercial
Softwater Service
Car Wash
Office Buildings
Laundromats
Department and Retail Stores
Warehouse
Hospitals
Indoor Theatre
3
20
130
150
150
150
250
190
55
150
80
110
150
150
100
210
58
170
210
260
300
300
350
400
Group III Commercial
Hotels-Motels(w/o restaurants) 310
Repair and Service Stations 180
Commercial Laundry 450
Manufacturing 405
Lumber yard 400
120
280
240
420
430
430
460
690
825
830
Group IV Commercial
Hotels-Motels (v restaurants) 500
Bakeries (wholesale) 1,000
Supermarkets 800
Mortuary 800
Restaurants 1,000
600
600
800
800
600
1,100
1,600
1,600
1,600
1,600
Group V Institutional
Membership Organizations
Social Services
Schools
Motion Pictures (studios)
130
130
130
130
80
80
100
100
210
210
230
230
Group VI Large Volume Users
** Wastewater strength data is adapted from State Water
Resources Control Board's(SWRCB) "Revenue Program
Guidelines for Wastewater Agencies".
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SECTION 6
SECTION 6
SCHEDULE OF FEES AND CONDITIONS
Based on the present knowledge of the work, and tasks listed in Section^ 2,
" 00 for the wastewater revenue
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