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1986-255
1653L NO Xf ass AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND CAMP, DRESSER AND MCKEE FOR ENGINEERING SERVICES, APPROVING THE EXPENDITURE OF FUNDS THEREFORE, AND PROVIDING FOR AN EFFECTIVE DATE NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Council hereby approves and authorizes the Mayor and City Secretary to execute and attest, respectively, the agreement between the City of Denton, and Camp, Dresser and McKee providing for engineering services under the terms and conditions being contained in said agreement which is attached hereto and made a part hereof SECTION II That the City Council authorizes the expenditure of funds in the manner and amount as specified in the Agreement SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the & day of 1986 RA P EN , MAYOR CITY OF DENTON, TEXAS ATTEST CI OF ENTON, TEXAS APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY 1653L THE STATE OF TEXAS S COUNTY OF DENTON S ENGINEERING SERVICES AGREEMENT BETWEEN THE CITY OF DENTON AND CAMP, DRESSER AND MCKEE This Agreement is made and entered into this ~ day of Dece-_Mk Y' 19869 by and between the City of Denton, here- ina ter re erre to as the "City", and CAMP, DRESSER $ MCKEE, hereinafter referred to as "ENGINEER" WHEREAS, the CITY desires the professional services of ENGINEER to perform engineering services, to serve as the CITY's professional engineering consultant and advisor in connection with a Study to evaluate and make recommendations for Capital Recovery fees for the City as described in Exhibit A, "Scope of Work", and, WHEREAS, the CITY has designated the DIRECTOR OF UTILITIES to serve as the PROJECT MANAGER for the CITY to direct the day-to- day activities of the ENGINEER, NOW, THEREFORE, the CITY and ENGINEER, for the mutual con- sideration hereinafter stated, agree and understand as follows I Scope of Services for ENGINEER A The Scope of Services to be rendered under this Agreement is set forth in Exhibit A, attached to and made a part hereof, relating to an evaluation and recommendations regarding the adoption of capital recovery fees by the City of Denton Any deviations from the attached Scope of Services, or other provisions of this Agreement, may only be made by written agreement signed by both parties B If authorized by CITY, additional services related to the scope of work will be performed by ENGINEER for an addi- tional professional fee as the parties may subsequently agree II CITY'S Responsibilities A CITY shall perform the following in a timely manner so as not to delay the services of ENGINEER Provide all criteria and full information as to CITY'S requirements for the Study and designate in writing a person with authority to act on CITY'S behalf on all matters concerning the Study 2 Furnish to ENGINEER all existing reports and other available data pertinent to the Study, obtain or authorize ENGINEER to obtain or provide additional reports and data as required, and furnish to ENGINEER services of others required for the performance of ENGINEER's services hereunder, and ENGINEER shall be entitled to use and rely upon all such information and services provided by CITY or others in performing ENGINEER'S services under this Agreement 3 Arrange for access to and make all provisions for ENGINEER to enter upon public and private property as required for ENGINEER to perform services hereunder 4 Perform such other functions as are indicated as City's responsibilities in Exhibit A, "Scope of services" 5 Bear all costs incidental to the requirements of this Section 6 Provide labor and safety equipment to inspect or investigate any existing facilities as required by the ENGINEER III Period of Service A ENGINEER'S basic services will commence within fifteen (15) days of the date of this Agreement The Part 1 Report shall be completed within sixty (60) days from execution of Agreement, and the Part II Report, if authorized in writing, shall be completed within sixty (60) days after authorization to proceed B ENGINEER'S basic services under this Agreement will be considered complete at the earlier of (1) the date when Part II, item 1 9 and Part II, item 2 7 in the "Scope of Work" is accepted by CITY or (2) sixty (60) days after the date when the report is submitted for final acceptance, and the amount of time, in each case, if applicable, as may be considered reasonable for obtaining approval of governmental authorities having jurisdiction to approve the Study C ENGINEER'S additional services will be performed and completed within the time period agreed to in writing by the parties at the time such services are authorized IV Payments to ENGINEER A ENGINEER will undertake the "Scope of Services" under this Agreement for a fee of $17,800 for Part I and Page 2 $17,100 for Part II For and in consideration of the work performed hereunder, CITY agrees to compensate ENGINEER on a monthly basis Each month, ENGINEER will submit to PROJECT MANAGER an invoice for services performed by ENGINEER during the previous month The amount invoiced will be based upon the percentage of completion of work authorized under this Agreement Terms of each invoice shall be net thirty (30) days Late payments will incur a late penalty of one percent (1%) per month from the original date of the invoice Payments in excess of sixty (60) days late may be cause for a suspension of work B Any required change in the "Scope of Services" will be accompanied by an adjustment in the fixed cost amount of this Agreement, subject to mutual consent of CITY and ENGINEER V Cost Control A Opinions of probable construction cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance costs prepared by ENGINEER hereunder will be made on the bass of ENGINEER'S experience and qualifications and shall represent ENGINEER'S best judgment as an experienced and qualified design professional VI General Matters A Neither City nor ENGINEER shall assign, sublet or transfer any rights under or interest in, including, but without limitation, monies that may become due or monies that are due, this Agreement without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limi- tation may be restricted by law Unless specifically stated to the contrary in any written consent to an assign- ment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement Nothing contained in this paragraph shall prevent ENGINEER from employing such independent professional associates, subcontractors and consultants as ENGINEER may deem appro- priate to assist in the performance of services hereunder B Nothing under this Agreement shall be construed to give any rights or benefits in this Agreement to anyone other than CITY and ENGINEER, and all duties and responsibil- ities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of CITY and ENGINEER and not for the benefit of any other party Page 3 C This Agreement (consisting of pages 1 to 9 inclusive), together with Exhibit "A", constitute the entire Agree- ment between CITY and ENGINEER and supersede all prior written or oral understandings This Agreement may only be amended, supplemented, modified or cancelled by duly executed written instrument D In the event the Engineer's PROJECT MANAGER is removed from the performance of this Agreement, CITY will have the right to interview and approve or disapprove of his replacement VII Indemnification A ENGINEER shall and does hereby agree to indemnify and hold harmless CITY from any and all damages, loss or liability of any kind whatsoever, by reason of injury to property or third persons occasioned by any error, omis- sion or negligent act of ENGINEER, its officers, agents, employees, invites, and other persons for whom it is legally liable, with regard to the performance of this Agreement, and ENGINEER will, at its cost and expense, defend and protect the CITY against any and all such claims and demands VIII Mailing Addresses A All notices and communications under this Agreement to be mailed or delivered to CITY shall be sent to the address of PROJECT MANAGER as follows, unless and until ENGINEER is otherwise notified Denton Municipal Utilities 215 E McKinney St Denton, TX 76201 ATTN Robert E Nelson, P E (817) 566-8230 B Notices and communications to be mailed or ENGINEER shall be sent to the address of follows, unless and until PROJECT MANAGER notified Camp, Dresser and McKee Three North Park East, Suite 400 8800 North Central Expressway Dallas, TX 75231 ATTN Roger Hartman (214) 987-1900 delivered to ENGINEER as is otherwise Page 4 Any notices and communications required to be given in writing by one party to the other shall be con- sidered as having been given to the addressee on the date the notice or communication is posted by the sending party In WITNESS WHEREOF, the Parties hereto have made and executed this agreement as of the day and year first above written ATTEST yV~ C©v~tr ~Fdm~n~stra-For ATTEST ENGINEER CAMP, DRESSER AND MCKEE BY CITY OF DENTON, TEXAS n BY P'ry RAY T PH S, MAYOR APPROVED AS TO LEGAL FORM 0A 0S h NIFE WALTERS DEBRA ADAMI DRAYO ITCH $ UTY & TY SECRETARY CITY ATTORNEY Y OF DENTON, TEXAS CITY OF DENTON, TEXAS Page 5 EXHIBIT "A" SCOPE OF SERVICES Pur ose of Study The primary purpose of this study is to eval- uate t e nee or a capital recovery fee, as well as alternatives to such a fee, and their respective impacts on rates and charges for water and wastewater services The study consists of two parts - Part 1 and Part II If a capital recovery fee is recom- mended as a result of this initial evaluation, and approved by the Denton City Council, the second phase of study will develop such a capital recovery fee Part II will only be authorized and payment made therewith if the Denton City Council so directs by written resolution PART I 1 0 Preliminary Assessment 1 1 Review existing financial, planning and capital improve- ment plans and documents 1 1 1 Collect existing financial, budget, and planning reports on existing and proposed City facilities 1 1 2 Review existing reports and data 1 1 3 Review existing legal and institutional arrange- ments and constraints Review City's commitments to provide water and wastewater services to surrounding entities 1 1 4 Consult with City to identify and convene Citizen's Capital Recovery Fee Advisory Committee, hereafter referred to as "Committee" 1 2 Project annual operating and maintenance (0$M) and debt service costs, and system usage through 1995, using current utility capital improvements programs, planning reports and studies 1 2 1 Using data and information from Section 1 1, pro- ject system costs through 1995 1 2 2 Using data and information from Section 1 1, pro- ject system usage through 1995 1 2 3 City shall make available all information being developed for City's ongoing utility rate study Exhibit A/Page 1 1 3 Establish revenue requirements through 1995 for each utility system and conduct Workshop No 1 with Committee 1 3 1 Distribute Working Paper No 1 and agenda to Com- mittee one (1) week prior to Workshop No 1 1 3 2 Working Paper No 1 will be based on work completed in Sections 1 1 through 1 2 3 1 3 3 Conduct workshop with Committee 1 3 4 Review and evaluate workshop comments and results with City 1 4 Identify and examine up to three (3) alternative financing mechanisms for City's capital programs(s) 1 4 1 Alternative financing mechanisms shall include a current method assigning all debt service to rate base b capital recovery fee method using a range of estimated fee (high and low) c special improvement assessment method for some proposed capital improvements 1 4 2 Define "new" and "existing" customers for each utility 1 4 3 Evaluation shall include an assessment of impacts of each of the alternatives from Section 1 4 1 on rates and charges for water and wastewater service using City's existing rate and charge structures 1 5 Conduct Workshop No 2 with Committee 1 5 1 Distribute Working Paper No 2 and agenda to Committee one (1) week prior to session 1 5 2 Working Paper No 2 will be based on work completed in Sections 1 4 through 1 4 3 1 5 3 Conduct workshop with Committee 1 5 4 Review and evaluate workshop comments and results with City 1 6 Submit preliminary draft report on feasibility of capital recovery fee and conduct Workshop No 3 with Committee Exhibit A/Page 2 1 6 1 Distribute twenty-five (25) copies of preliminary draft report to Committee and Public Utilities Board and City one (1) week prior to session 1 6 2 Preliminary draft report will include findings and recommendations regarding the feasibility of a capital recovery fee 1 6 3 Conduct workshop with Committee and Public Utilities Board and City 1 6 4 Review and evaluate workshop comments and results with City Incorporate comments from Board, Committee and City into final draft report 1 7 Submit twenty-five (25) copies of final draft report and present findings and recommendations to Denton City Council (Council) Incorporate Council comments into final report 1 8 Submit twenty-five (25) copies of final report to City PART II 2 1 Develop basis for capital recovery fee program 2 1 1 Identify facilities to be funded by the fee 2 1 2 Identify legal constraints and guidelines, regulations, etc , of the Public Utilities Commission and the Texas Water Commission regarding such fees 2 2 Develop capital recovery fee program 2 2 1 Identify and examine up methods for determining recovery fee, including a "buy-in" concept to three (3) alternative the level for a capital b marginal cost approach based on recent or near- term system additions c debt service apportionment concept 2 2 2 Evaluation shall include an assessment of the level of fee associated with each alternative, projection of revenues to be collected, and impact on rates paid by existing customers Exhibit A/Page 3 2 2 3 Evaluate and recommend unit of measure for fee assessment 2 2 4 A discussion of the advantages and disadvantages of each concept will be developed 2 3 Conduct Workshop No 4 with Committee 2 3 1 Distribute Working Paper No 4 and agenda to Committee one (1) week prior to session 2 3 2 Working Paper No 4 will be based on work completed in Sections 2 1 through 2 2 4 2 3 3 Conduct workshop with Committee 2 3 4 Review and evaluate workshop comments and results with City 2 4 Submit preliminary draft report on capital recovery fee program and conduct Workshop No 5 with Committee, Public Utilities Board and City 2 4 1 Distribute twenty-five (25) copies of preliminary draft report to Committee and Public Utilities Board and City at least one (1) week prior to session 2 4 2 Preliminary draft report will include findings and recommendations regarding the capital recovery fee program 2 4 3 Conduct workshop with Committee and Public Utilities Board and City 2 4 4 Review and evaluate workshop comments and results with City Incorporate comments from Board, Committee and City into final draft report 2 5 Submit twenty-five (25) copies of final draft report and present findings and recommendations to Denton City Council Incorporate Council comments into final report 2 6 Submit twenty-five (25) copies of final report to City Exhibit A/Page 4 CDR is proposing to conduct the Capital Recovery Fee Study for the City of Denton, using the project management team, technical approach, and schedule outlined in this proposal With a current population in excess of 50,000 and expected steady growth, Denton, like most cities, is faced with deciding how to finance utility system improvements while maintaining a reasonable rate structure and ac- ceptable level of service The basic question is, "Should existing utility system customers share the cost of financing capital projects that are pri- marliy needed to serve growth?" The primary objective of the capital Recovery Fee Study will be to evaluate the need for such a fee as well as alternatives to such a fee and their as- sociated costs CDM recognises that such fees are sensitive issues, and that sometimes the final decision is made subjectively if a Capital Recovery Fee is recommended, the study will enter a second phase in which the details of the possible capital recovery fees will be developed and tested for suitability to each of the various needs of the City of Denton our proposal is divided into six major sections covering these topics o Introduction o Technical Approach o Project Staffing o Project Schedule o Summary Statement, and o Camp Dresser & McKee Qualifications r ■ s In Appendix A we have included a summary of the management and Financial Services Division's areas of practice, Appendix B contains resumes for all of the staff members who will be assigned to the study, Appendix C contains brief descriptions of several related studies we have performed across the united States, and Appendix D contains corporate brochures -1- - - _ _ _ ^auo roc ec con vrc w W y~ TECHNICAL APPROACH l d ill i e a nc u COM's approach to conducting the Capital Recovery Fee Study w series of interrelated tasks focusing on evaluation of the financial im- pacts of the existing facilities and their operations, as well as proposed facility improvements, on utility rates and charges, bond ratings, etc The method by which capital improvements are financed will have a major impact on the study results and, therefore, the analyses must include com- parisons of alternatives both with and without a Capital Recovery Fee The tasks will ultimately encompass the analysis, projection, and computer modeling of the utility system's historic and anticipated capital program, financing arrangements, operating costs, and system usage, as they relate to total revenue program requirements recovered through user-charges and possible connection fees An outline of proposed tasks includes l Task Task Description ? 1 Initial Project Meeting with City 2 Review Utility Department Financial Statements and various Planning Documents 3 Review Capital Improvement Program (CIP) and Financing Plan q Project Annual O&M Costs and System Usage 5 Determine Revenue Requirements 6 Workshop with City Staff to Review Revenue Requirements 7 Evaluate CIP Impacts with Capital Recovery Fees B Evaluate CIP Impacts without Capital Recovery 9 Assess CIP Impacts on Components of Rates and Charges 10 Determine Need for Capital Recovery Fees 11 Workshop with City Staff and Public Utility Board to Review Impact of Capital Recovery Fee -2- 12 Develop Capital Recovery Fee Program (if recommended) 13 Prepare Preliminary Report and Review with City Staff 14 Prepare Final Report and Present Conclusions and Recommendations to the Public Utilities Board and City Council CDM assumes that City staff will be available to collect, organize, and transmit the necessary data and water and wastewater system records PROJECT STAFFING CDM's approach to this project will make full use of our extensive in-house rate, financial, and management staff from our management and Financial Services Division, with water and wastewater technical suooort from roe engineering staff CDM Vice President, Ashok varma will serve as officer-in-Charge with the ultimate responsibility for overall quality assurance of the work Mr Roger Hartman, Manager of CDM's West Region Management and Financial Services, with over 14 years of utility system management and consulting experience, will serve as Project Manager with responsibility for the development of all aspects of the study, including contract management Mr Hartman will provide day-today and task-by-task direction of the work in terms of data analysis, evaluation techniques, task relationships, and communication with the City of Denton's Utility Department The Project Manager will be supported by CDM Financial Specialist Brent Hoots who is experienced in the preparation of all phases of financial planning, rate review, and revenue programs He will be responsible for executing the analytical work, including impact evaluation, revenue pro- jections, etc -3- N' A N N N With a strong technical knowledge of both water and sewer systsms, Mr Ken Adams will provide engineering support to the overall project effort, and participate in the development of project tasks Providing additional technical review assistance to the project o Roger Fry and Richard Thompson - engineering review o Dave Laredo - financial review Resumes of the project staff are included as Appendix B PROJECT SCHEDULE should be submitted to the City in approximately three months CDM proposes to submit Part 1 of the study, the Capital Recovery Fee need determination within four weeks of receipt of a notice to proceed Work- shops which encourage participation of City Staff, the Utility Board, and perhaps the City Council will help determine the need and applicability of such a fee if a Capital Recovery Fee is recommended, Part 2 will develop the structure and level of the Capital Recovery Fee Therefore, we antic- ipate that it, too, will require four weeks Assuming two weeks for the City to review the draft report and subset comments to CDM, a final report SUMMARY STATEMENT CDM is excited about the prospect of working with the City of Denton on conducting the proposed Capital Recovery Fee Study we believe our com- pany's experience and the proposed project team places CDM in an excellent position to successfully complete the study in a timely fashion After you have had the opportunity to review our proposal, please call us at your convenience CAMP DRESSER & MCKEE QUALIFICATIONS Camp Dresser & McKee Inc (CDM) is the largest multi-disciplined profes- sional consulting organization specializing in the environmental field and -4- ranked 11th overall among the top 500 architectural/engineering design firms in the United States Providing consulting services since 1947, CUM currently has a staff of over 1,600 professionals located in 50 offices throughout the United States and abroad CDM is an employee owned, totally independent consulting firm and does not engage in the contracting or supply of goods and equipment W -5- IN MANAGEMENT AND FINANCIAL SERVICES EXPERIENCE CDM's management and financial services group provides focused consulting to water waste at d , w er, an stormwater utilities in financial, institutional, and management areas The members of this group combine engineering backgrounds with advanced degrees in finance, economics, law, and business, providing alternative viewpoints for the successful implementation of engineering solutions. The value of the integrated perspective provided by this diverse group is extremely important, given the ever-changing nature of organizations, institutions, regulations, and project financing. The following is a brief description of the areas on which the management and financial services group focuses. FINANCIAL SERVICES CDM's experience in financial analyses for utilities covers the entire spectrum of such services from capital project and program planning through budgeting for facilities operations. The various categories of work and analyses required often overlap, and in many instances encompass activities which can be classified as management and/or institutional studies The categories of these services are described below. o User charge studies CDM's user charge studies include determining the amount of revenue required to support a utility's short- and long-term activities These activities may include debt service, facilities operation and maintenance requirements, and the needs of various service delivery programs and other supporting activities Once revenue requirements are determined, alternative schedules of rates and charges designed to equitably recover the required revenue from the various user classes are recommended for implementation. Parallel studies, including detailed cost of service analyses, accounting system and administrative procedure reviews, and management audits, often provide significant input into user charge studies CDM has completed over 100 user charge studies over the past five years o General feasibility and sources of funds CDM services include determining the financial requirements, in terms of total dollars and cash flow, of various programs both public and private Sources of funds to meet various levels of program implementation are identified and a recommended plan to utilize the various sources presented Feasibility analyses can be related to master planning, specific - capital improvement programs, or to ongoing or new operational and administrative programs. Often these financial studies are predicated on management and institutional studies which define the increases or decreases in financial resources necessary for the new or continuing programs. o Capital programming and budget preparation CDM services include studies to prepare capital improvement plans and operating budgets for new facilities as well as ongoing operations. Often such engagements stem from the financial feasibility projects, and may involve user charge studies. The significant tasks in such studies includes determination of contracting, financing and other related costs for capital works, and all direct labor, overhead, fringe benefits and material and power costs related to operating budgets o Bond ros ectus report CDM prepares engineering, project need an rate mpact reports that are part of bond prospectus documents The reports review the technical, managerial, and financial aspects of the utility or agency implementing the program for which the bonds are being issued. Such reports address the amount of risk assumed by the prospective bond buyers Factors reviewed include ' s the history of the operating entity, the strength of the agency management team, the technical soundness and financial viability of the planned project, and legal obstacles and/or liability faced by the agency involved. o Certification re orts to meet bond covenants These reports are " required by covenants and ordinances that form the basis of municipal bond offerings. The covenants ordinarily require a review, on an annual basis, by a firm with expertise in the _ technical, managerial and financial aspects of public utility the bond trustee(s) operation. The review is required to assure that the utility is well managed, is making sufficient investments in operation and maintenance to protect the condition of the assets paid for with bond proceeds, and is in compliance with various and flow stipulations of the bond issue regarding revenue recovery of funds o Enterprise funds and accounting system studies Several CDM engagements have involved the study and establishment of enterprise funds and utility accounting systems Enterprise fund revenues are ram (the enterprise) ro l i , g ar p cu funds solely dedicated to a part for instance a community's wastewater collection and treatment system Such engagements require establishing systems for the 0 proper accounting of costs and revenues involved in the program Similar accounting studies not involving enterprise funds have also been conducted INSTITUTIONAL SERVICES CDM's experience in institutional studies for utilities covers the three broad areas of program implementation, inter-agency and inter-governmental agreements, and legal requirements Our services in institutional studies are described below. o Strategic Planning The strategic plan of an organization is a compos tee - systematic blueprint of management's answers to the three basic strategic questions facing any enterprise (1) What is N our purpose, what will it be, what should it be?, (2) What objectives do we want to achieve?, (3) How are we going to manage the organization's activities so as to achieve the chosen objectives? From developing the strategic planning framework to implementation and monitoring of the strategic gameplan, CDM combines the diverse backgrounds of a multi-disciplined staff with over 40 years of infrastructure experience to provide the expertise necessary for managing the strategic planning process o Organization planning Organization planning projects usually fall into one o two categories (1) determining which existing agency (or group of agencies) should implement a particular program, and how the organization should be structured to facilitate the program's operation, and (2) for new agencies determining what structure should be established to implement a particular new program. In both cases, CDM's typical analysis presents recommendations on the optimum organizational structure, manpower levels, the mix of skills required and descriptions of the systems and procedures the agency should utilize to perform its mission o Program develoPme~ntt Program development projects are those in w ch nisi ew activities required by statute or regulation are imposed upon utilities or public works agencies. For the most part, CDM's services in these projects have focused upon new programs for existing agencies EPA's industrial pretreatment program requirements are a prime example On projects of this type, CDM matches the program needs to the agency's available resources, and presents recommendations on how any deficiencies can be overcome, including the new systems and procedures required, additional personnel or training of existing personnel and necessary budget increases required for the new program o Program evaluation and agency interaction CDM services on this type o project typically require the evaluation of particular public works or utility projects on both the macro and micro levels. Agency interaction studies are often included in such evaluations as few large programs are concentrated in single agencies Program evaluations focus on the results of various programs compared to the expectations These studies examine the methods by which the results are achieved, the level of interagency relationship required, and the coordination mechanisms utilized o Statu~tor /re ulator review Projects of this type require a etd ailed rev ew o the statutes and regulations pertinent to particular projects. This review leads to a determination of the permits needed, the special features a project must incorporate, all the government agencies involved in the approval process and the type and number of public hearings required This analysis is often critical as many elements, especially those involved with permitting, require specific timeframes for review and public comments on permit applications. CDM's services on these projects typically include an implementation plan which indicates the required application dates for specific permits, the state, federal, and local agencies involved in the process, and the type of information required for each permit. In some cases, CDM actually prepares the applications for our client's review and submittal o Legal authority and enabling legislation This type of project ordinarily req red s an analysis the legal basis for program implementation While not providing legal advice directly, CDM, working through our clients' legal counsel, has often aided in the interpretation of enabling legislation and prepared drafts of required enabling legislation and ordinances for the implementation of various programs ' o inter-governmentael agreements and service contracts This type of project requires valuation or formulation of agreements between two or more governmental entities for provision of public services, including water supply, wastewater collection and treatment, and solid waste disposal. CDM services with regard to these agreements often stem from the legal analyses discussed above o Litigation support CDM has provided litigation support services to va out s government jurisdictions involved in law suits concerning construction claims, violations of various ordinances or regulations, by system users or permit holders and noncompliance actions (consent decrees) In addition to many of the elements of service described above, litigation support usually involves the skills to negotiate settlements '.J 0 ■ ■ i 0 MANAGEMENT SERVICES CDM's experience in utility management studies have focused on the evaluation of the overall performance of utilities, and the systems they utilize in performance of their mission The outputs of these studies provide implementabie recommendations designed to significantly improve operations. Past engagements have been directed towards the utility as a whole, and/or to specific functions or systems utilized by component groups. The services are described below o Management audits and diagnostic evaluations Typical management audits performed by CDM determine the functions and supporting activities of a particular utility, the systems and procedures used to perform these functions, and the relationship of the functions to the goals and objectives of the organization Further analyses determine if systems in place allow the goals and objectives of the utility to be met. The analysis methodology on such projects consists of interviews with the utility's management team (and other government officials), reviews of reports and file data and field observation. Through a diagnostic evaluation, CDM provides specific recommendations aimed at improving the effectiveness and/or efficiency of the utility as a whole, or anyone of its component parts. Recommendations typically include revised procedures, incorporation of new systems, analytical techniques or technology, revisions to the skills mix in various groups, and development of other improvements to operations (such as preventive maintenance programs, management information systems, or career development and training programs). o Organizational studies Typical CDM services on these engagements are directed tower evaluating the organizational structure of a utility, and the relationship of the structure to the utility's performance of its mission. In effect, these studies center on groups within the organization and how they relate to one another in a particular department, and to the utility as a whole Such studies and specific recommendations on organization structure are geared toward enabling the utility to carry out its responsibilities in an optimal fashion o Contract o erations Typical CDM services related to contract opera ons nvo ve analyses to determine which portions of an ongoing or planned operation could be more effectively or economically provided by the private sector The analyses include many of the elements in management audit and diagnostic evaluations described above, and require a detailed cost of service study to determine the utility's actual cost for all components of a given 0 function. In addition, various socio-political factors must be included in the decision making process, as well as a detailed evaluation of the capabilities of the private sector to provide the required services. General management CDM services related to general management studies usually fall into one of two categories (1) analyses of how utilities function, and what changes would be necessary to implement new functions or programs, (2) general descriptions of various utility programs and how these relate to utility operations as a whole. The analyses for such projects are more descriptive and less diagnostic in nature than those described above. The objective is geared more toward providing information to the utilities and the public at large Often these studies act as a preamble to more detailed management and organization studies discussed above. i ROGER B HARTMAN, Ph D Senior Environmental Engineer Management Consulting Services Camp Dresser 6 McKee QUALIFICATIONS SUMMY Mr Hartman has over 13 years' experience in civil and environmental engineering relating to the management, planning, design, and construction of water and wastewater treatment facilities, and stormwater control facilities He has served as Director of Engineering for the Metropolitan Denver Sewage Disposal District and as Director of Utilities for the City of Boulder, Colorado ZVERIENCE As Director of Engineering for the Metropolitan Denver Sewage Disposal District, Dr Hartman was responsible for activities and services related to the planning, design, construction and modifications of wastewater transport and treatment facilities, solids processing, and recycling for the Denver metropolitan area. Dr. Hartman also coordinated and developed the District's Long-Range Master Plan Study, focusing on alternative future service area concepts through the year 2035 For the City of Boulder, he served as Director of Utilities in charge of the administration and management of the City's water, wastewater and flood control utilities, including billing, finance, maintenance, treatment, and engineering functions As Assistant Director for Treatment Operations in Boulder, Dr Hartman was responsible for administration, management, and engineering for vaster and wastewater treatment operations Dr Hartman has participated in cost of service and rate determination studies for public water and wastewater agencies in Colorado, California, and Now Jersey included in these studies were analyses of various cost recovery alternatives for operating and capital expenses, impact on customer classes, and impact an water consumption He also has appeared before various boards and commissions offering testimony regarding rate analyses As project manager, he is developing a strategic plan for future water and wastewater service for the City of Fort Worth, Texas This includes projecting service requirements, developing alternative service delivery concepts, estimating capital and operating costs for various alternatives, and investigating possible institutional arrangements for service through year 2010. REGISTRATION Professional Engineer Colorado EDUCATION B S - Civil Engineering, Ohio University, 1970 M S - Civil Engineering, Ohio university, 1972 Ph D - Environmental Engineering, University of Colorado, 1977 PROFESSIONAL Water Pollution Control Federation SOCIETIES American Water Works Association American Public Works Association PL0786 -r r r r r BRENT F HOOTS Financial and Institutional Analyst Camp Dresser A McKee QUALIFICATIONS SUMMARY Mr Hoots has experience in financial, analyses, rate studies, institutional and regulatory analyses, and management information systems for water and wastewater utilities and other public agencies EXPERIENCE Mr Hoots' recent project involvement includes the financial and performance analysis of the Louisville Water Company, and a water and sewer rate study for the City of Allentown, Pennsylvania The Louisville project included a comprehensive analysis of financial statements and operating utilitiand es in also, overall US The performance e of comparisons Allentown,~ Pseveral ennsylvania rprowater ject included a computerized financial model for the utility's in-house use, an analysis of intermunicipal service agreements for the retail customers, and the development of a framework for applying various capital cost recovery techniques. His additional experience includes the regulatory review of proposed hazardous waste control plans for two U.S Air Force installations in the western United States, determining the tax implications of various financing alternatives for resource recovery facilities, and, developing computer applications for the financial analysis of utilities EDUCATION B S - Civil Engineering, University of Illinois, 1982 M B A - Finance, University of Denver, 1984 SOCIETIES American Society of Civil Engineers American Water Works Association M i rr is /cc 1 KENNETH C ADAMS ' Senior Environmental Engineer Camp Dresser 4 McKee Inc f QIAbIFICATIONS SUMMARY Mr. Adams has more than twelve years experience in the operation, planning, ' process design, detailed design, construction administration, startup and operator training for municipal and industrial water and wastewater pro- jects. To these projects he brings the operator's perspective and a flair ' or innovative solutions to problems EXPMENCE Mr Adams is currently a senior environmental design engineer in CDM's Dallas office, serving as project manager on a number of projects and project engineer an others. Since joining CDR, he has managed many pro- jects for the Town of Flower Mound, Taxes, including a wastewater treatment plant expansion study, along with the subsequent design and construction- related services Be has also served this client an many other smaller ass gnmgnts, and will now menaggee a full-scale water and wastewater master pl ing study Flower Mound is currently undergoing very rapid yrowhh The management of this growth, and particularly the requirements for water and wastewater planning and development, have made it necessary for the Town to have someone of Mr. Adams' experience to aid in making prudent and practical decisions Mr Adams is also the project engineer for a new wastewater treatment plant ' for,Denison, Texas. Of particular concern in this project is the handling of significant quantities of high strength industrial wastes, a high degree of infiltratiorVinflow, and a requirement that the project be completed in a very short timeframe. Mr. Adams' abilities as a coordinator and process designer have been of great importance in this project in spite of the time constraints, the resulting facilities are tailored to the personnel and unique conditions in Denison. Prior to joining CDM, Mr. Adams worked for consulting engineering firms in Missouri and Now Mexico, gaining appreciation for the geographical and cul¢ural influences an water and wastewater projects. Having worked in sma 1 consulting firms, he has gained experience in all phases of water and was ter treatment and pimping facilities and water distribution and wastewater collection systems projects, including planning, budget prepare- ti ,scheduling, £acilities design and preparation of contract documents, bi ing, contract administration, project close-out, startup, operator tra ning, and quality ca►trol. ' EDUCATION M.S. - Environmental Engineering, Oklahoma University, 1974 B.S - Civil Engineering, Oklahoma University, 1973 REGISTRATION Registered Professional Engineer in four states ASHOK VARMA Vice President Camp Dresser i McKee Inc QUALIFICATION SUMMARY Mr Varna is the Manager of Dallas' CDM office and has twenty years of design and project management experience in both environmental and engineering projects, including water treatment plants, wastewater treat- ment plants, pumping systems, waste heat recovery systems, and air ollution control systems He is also experienced in HVAC and plumbing p systems design ' EXPERIENCE In the field of water treatment and transmission Mr Varma's recent pro- jects include evaluating performance of and determining trihalomethane con- trol methods of Odessa's Mater Treatment Plant, and design and services during construction of Odessa Water Treatment Plant's 100-mgd finished water pump station and treatment plant improvements from 35-mgd to 70-mgd, Mr Varma has been respon- t d i ' u y on s s water Distribut and City of Garland sible for major water treatment plant improvements for North Texas Munici- pal Water District; 250-mgd to 400-W expansion of City of Dallas' East Side Plant, and other smaller plants in Austin, Commerce, and Livingston in the field of wastewater Mr Vanma's recent projcts include serving as project engineer on Dallas' 1980 wastewater Plan - a comprehensive study j of Dallas' collection and treatment systems through 2000; and project manager on study, design, and construction administration for rehabilating esses d d l ge proc s u and improving the Dallas Central Plant's 115-mgd activate end the plant's centralized instrumentation and controls He also served i as project manager for Dallas' wastewater Sludge master Plan and design of ehabilitation and upgrading of existing S-mgd North ' R s r ouge City of Baton Plant and 16-mgd South Plant to secondary facilities using trickling and energy recovery rin t d j g, ewa e filters with sludge digestion, r EX=TICN 8.9 - Mechanical Engineering, Bihar College of 1967 India P t i , na, a ty, Engineering, Patna Univers M.S - Mechanical Engineering, Oklahoma State University, 1969 REGISTRATION Professional Engineer Texas PROFESSIONAL SOCIETIES American Society of Mechanical Engineers American Society of Refigeration and Air Conditioning Engineers American water works Association water Pollution Control Federation ROGER G FRY Associate Camp Dresser 8 McKee QUALIFICATIONS SUMMARY rF IF i a y Mr Fry has extensive experience in water resources, supply, and distribu- tion projects, and drainage and flood control projects His experience includes consulting, preparing planning and feasibility studies, designing physical facilities, performing financial and institutional studies, teaching, and providing expert testimony in court cases and hearings EXPERIENCE Mr Fry has been principal-in-charge or project manager for more than 40 planning studies and more than 30 design projects in California, Arizona, Washington and Alaska He managed the development of structural flood con- trol alternatives for the Central Arizona Water Control Study Other flood control projects include a reconnaissance level flood control study of the Agua Caliente Wash in Tucson, Arizona, the San Lorenzo River in Santa Cruz County, California, and Alhambra Creek in Martinez, California Mr Fry managed the urban runoff and basin drainage study for Metropolitan Seattle, i a drainage master plan (including an environmental assessment) for Bellevue, Washin ton, the hydraulic analyses and design phase of the Corte Madera Creek project, California, and the erosion control master plan for Las Trampas Creek, Contra Costa County, California Mr Fry has managed numerous water supply, transmission, and distribution studies for cities and districts in California and has prepared master i water plans in the cities of Benicia, San Bernardino, Pleasanton, Vallejo, i and Scotts Valley He was project manager of a water resources study in Marin County, California, involving two reservoirs, imported water, and flood control. Mr Fry has designed, or has been responsible for the design of numerous physical facilities, including pipe and conduit systems, pump stations, channels and flood control structures, dams and spillways, detention basins, lakes, and reservoirs Examples are an 8-mile long interior drainage channel on the Chena River in Fairbanks, Alaska, a 2,000-gpm booster pump station in the City of Tracy, California, an 8-million-gallon prestressed concrete reservoir in Pleasanton, California, a 2-mile long levee and river bank stabilization project near Phoenix, Arizona, and a 200-acre marsh restoration project along the shoreline of San Francisco Bay EDUCATION B S - Civil Engineering, Berkeley, 1956 M S - Civil Engineering, Berkeley, 1958 University of California, REGISTRATION University of California, Professional Engineer California, 1959, Arizona, 1964, Nevada, 1969, Washington, 1973, Nebraska, 1978 DAVID LAREDO Associate Camp Dresser A McKee Inc QUALIFICATIONS SUMMARY Mr. Laredo has had over 22 years of experience in all phases of water resources, including planning mana eme t , g n , and financial studies, final designs, contract administration, field engineering and environment a l , a ssessments. EXPERIENCE Mr Laredo has been responsible for the management, financial, and i nstitutional analyses relating i a i n County, Florida. His in storm past experience drainage utilityct work includes directing simil t di ar s u es for Loveland, Colorado and Prince George's County, Maryland, and he participated in the wastewater and drainage rate projects for Denver, Colorado He was responsible for the management, financial, and institution l k f wor a or the Loveland Drainage Utility Study and communities in the Northeast and Southwest as well a for , s a group of industries in Memphis, Tennessee, and the Boston Water and Sewer Commission. He activel a ti i y p r c pated in management and financial s works and tudies for the Manchester, New Hampshire and Waterbury, Connecticut water i Detroit (including inputs tinto ntheelegal settlementy of o th h t i e rate cases), and Georgia Department of Environmental Control Mr. Laredo has extensive overseas experience in management and financial consulting and water supply and t was ewater master planning studies for Metropolitan Bangkok, Thailand, Istanbul, Turkey, Karachi, Pakistan the Re and ublic f S , p o eychelles. In addition, Mr Laredo has directed water supply studies for many towns in N ew England and New York and ha f , s prepared the final designs for wastewater and Massachusetts, Virginiar treatment Island and Hi l t e h e , s master planning experience includes as m service project anager for water quality management studies in the Dallas/F t W B or orth and eaumont Port Authority Pennsylvania Department of areas Envi onmental t Resour r a ces, and Piedmont Triad the Council of Governments' 11 county jurisdiction in North Carolina EDUCATION B.S. - Civil Engineering, City College of New York , 1960 M S - Civil Engineering, New York University, 1964 REGISTRATION Professional Engineer Massachusetts New York Texas , , Registered Thailand HONORS Diplomate, American Academy of Environmental Engineers IN IN r CLIENT NAME Manchester water works, Manchester, New Hampshire r PROJECT NAME Water Rate Study DESCRIPTION The Manchester Water Works is a publicly-owned municipal water utility that owns and operates the water treatment and distribution system serving the City of Manchester and the surrounding towns of Londonderry, Hooksett, Goffstown, Bedford, and Auburn, New Hampshire The population of the service area is approximately 110,000 CDM was engaged to prepare and present a water rate study to the New Hampshire Public Utilities Commission The rate study included a cost of service analysis to determine private and public fire protection charges; in city and out-of-city retail water rates; direct charges for service and meter installations, and a rate of return to the City of Manchester The proposed rates and charges were accepted by the Public Utilities Commission as filed in addition, MCS prepared a water rates manual which described, in detail, the procedures for conducting future water rates and cost of service studies YEAR COKPLE'M 1979 CLIENT NAME Orange Water and Sewer Authority Carrboro, North Carolina ' PROJECT NAME Water and Wastewater Rate Study DESCRIPTION The Orange Water and Sewer Authority is a public non-profit organization which owns and operates water and sewer systems in southeastern orange County, North Carolina (including the Chapel Hill campus of the university r of North Carolina) The Authority acquired properties from the towns of Chapel Hill and Carrboro, and the University of North Carolina in February 1977 During 1978, CDM's Management Consulting Services Group prepared a new study of water and wastewater rates for the Authority The study was divided into two tasks The first task was the preparation of an interim report analyzing various rate making methodologies and approaches This analysis included: an evaluation of the use of a service charge based on meter or service size as opposed to a minimum charge which includes a water allowance; an examination of alternative water pricing policies including uniform rates, seasonal surcharges, and increasing and decreasing block rates; and a comparison of uniform rates and high strength surcharges with charges based an customer class as methods of charging for sewer service Recommended approaches to the water and wastewater rates for the Authority were made The second task was the preparation of a report that presented water and wastewater rates for the Authority based on the Task 1 I recommendations. These rates were designed to recover, from the appropriate customers, the full costs of providing basic water and sewer service, public and private fire protection, service and meter installations and other services The final rates were formally adopted to include water and sewer service charges, uniform commodity charges for water and sewer and high strength waste surcharges Also included were charges which recovered the costs of providing treatment and transmission capacity for future water and sewer customers based on expected demand and density of development a YEAR COMPLETED 1978 r r M M CLIENT NAME PROJECT NAME DESCRIPTION City of Raleigh, North Carolina Water and Wastewater Rate Study The Public Utilities Department of the City of Raleigh provides water and sewer service to retail customers inside and outside its corporate boundaries and to neighboring municipalities on a wholesale, contract basis To ensure the continuing ability to provide services, the City undertook a major capital improvements program to increase the capacity of both the water and sewer systems Because of the importance of the financial considerations associated with this program, Camp Dresser a McKee (CDM) was engaged to conduct a comprehensive water and sewer rate study This study was conducted in three phases, each of which was presented in an interim report in the first phase CDM examined alternative caneptual methods of establishing and recovering revenue requirements In phase two CDM developed revenue requirements separately for the water and sewer systems and determined the allocation of these revenue requirements to wholesale and retail customers in the third phase CDM examined alternative rate structures, chose the structure best suited to Raleigh and then calculated the water and wastewater rates An important aspect of this study was the development of capital cost recovery mechanisms based on reserve capacity to ensure that the City's residents would not be required to subsidize the costs of system expansion to serve outside communities The results of all three phases were summarized in a rates manual that was designed to allow the City to revise its rates as necessary 'M- -COMPLETED 1981 µ p CLIEPT! NAt9: City of San Antonio, Texas PFWL''CP ton Water Rates Li-valuation Study DESCRIFTICN The City of San Antonio engaged camp Dresser & McKee to cc ct an ndu evaluation of the Water Board's rate increase request, financial planning, capital rd is improvements an opera program, Hater ward is and policies affecting their rates The City ting entity of the City which provides retail and wholesale water service and public and private fire protection services to the City of San Antonio and the surrounding communities CDR conducted this evaluation study in two phases First, a series of interim reports were submitted which addressed rate structures issues and alternatives and provided objective evaluations Then, after obtaining input from City and City Water Board officials, a final report was prepared presenting CDR's conclusions and recommendations Through this process of consultation it consideration was scial and cons derationseaslwell as to basic rate-making objectives Recommendations were made regarding the determination of revenue requi of service allocation system; the rate and charge structure; the the cost extension, li structure] the Board's the relationshipjbet een thepCityi n' the Water Boarrd planning; and YEAR CWLVMS 1979 Mx i 1° i, 1 I CLIENT NAME PRQ7ECT NAME Fairfax County, Virginia Wastewater User Charges Management Consulting Services of MM completed a five year financial projection study for this urban County's wastewater system The county operates a large, advanced waste treatment (ANT) plant and has purchased capacity in the ANT plants operated by four other jurisdictions Complex issues resulting from the phased conversion to ANT, the rapid growth of the County's population, and legal limitation on uses of the various forms of revenues, made the projections subject to a wide range of variables The final report proposed. specific rate determination algorithms; annual rate adjustments; and rates to be adopted through 1982 1977 CLIENT NAME Fairfax County, Virginia PROJECT NAND: Annual Financial Report in Support of County Bond Program DESCRIPTION The Fairfax County Department of Public Works administers a county-wide sewer system serving over 400,000 persons and a yearly budget of $40 million CON has been retained by the DPW to provide annual services required by the County's Bond Ordinances These services include reviewing the operating and capital budget to assure proper funding is provided; inspection of physical plant to assure proper maintenance is being carried out; reviewing rates and revenues in light of required costs; recommending changes or additions as required, to the Capital Improvement Program and; or the maintenance programs and; changes to the budget or rate and charge structures to provide proper funding of faciltiies YEAR CONPLETED Ongoing (1979, 1980, 1981, 1982) i ~r i CLIENT RAMS Boca Raton, Florida r PRDJECT MME Water and Sewer Rate Litigation DESCRIPTION The City of Boca Raton was sued by class action over certain city ordi- nances pertaining to water and sewer rate charges in 1973 The plaintiffs were a class of apartment owners that felt they were being discriminated against by the City's metering and resultant rate determination policies for water and sewer service The plaintiffs claimed damages of same $250,000 plus interest, attorney's fees and court costs in early 1980, the City engaged Camp Dresser & McKee (CDM) to appear as an expert witness on behalf of the City for the upcoming trial CDM reviewed the plaintiff's complaint, background law, and the basis for the rates Pretrial depositions were taken by the plaintiff's attorneys from a CDM utility rates specialist On the strength of the pretrial depositions, the . plaintiffs settled out of court for attorney's fees plus a nominal am, two days before the start of the trial COMPLETION DATE 1980 r CLIENT NAME Orange County, Florida PROTECT NAME Cost-Benefit Analysis of the Orlando Easterly Regional Water Pollution Control Program DESCRIPTION CDM conducted a benefit-cost analysis of a proposed 24 million gallon per day advanced wastewater treatment (ANT) plant that would serve the City of Orlando and portions of Seminole and Orange Counties Required by state and federal regulatory agencies to meet stringent discharge standards, the ANT plant proposed state-of-the art biological treatment technology Its high energy and chemical requirements for operation meant high annual oper- atinq costs The CDM analysis addressed the question Do the economic benefits of ANT justify its high costs? The analysis entailed two steps First, the instream water quality impacts of AWT and lesser treatment options had to be assessed Both a lake and a river were examined, with eutrophication being the main concern at the lake and dissolved oxygen being the principal consideration in the river Sec- ond, the economic benefits associated with the water quality impacts had to be identified The following types of benefits were examined for the lake and rivers recreation, commercial fishing, fish and wildlife propogation, public health, land values, aesthetics, aquatic weed control, and water supply Because of the subjectivity involved, a Benefits Assessment Panel comprising various CDM experts was assembled to assign such benefits to water quality impacts YEAR COMPLETED 1978 N r N CLIENT NAME Greenville Utilities Commission Greenville, North Carolina PROJECT NMZ Water and Wastewater Rate Study DESCRIPTION The Greenville Utilities Commission provides water, sewer, gas and electric service to approximately 40,000 customers in the City of Greenville and unincorporated portions of the county Because the Commission was incurring significant costs constructing new water and wastewater treatment facilities, they wanted to develop new rates schedules that reflected the cost of providing services Camp Dresser and McKee was engaged by the Commission to design rates that provide sufficient revenues to meet expenditures for operation, maintenance, debt retirement, and limited expansion; were equitable between classes of users based on the allocated cost to the classes, and included charges reflecting the cost of fire protection services CDM prepared an interim report that presented alternative methods of determing revenue requirements, reviewed current and alternative rate j structures, and recommended rate structures and charges To determine rates for the Commission that met their objectives, CDM conducted a thorough review of the Commissions operations and accounts Based on this review, CDM developed projects of Commission expenses for a five year period and allocated the projected expenses to types of service These expenses were then allocated to classes of customers to determine the revenues that should be recovered from each class of customer CDR also prepared a computer bill analysis of water and wastewater use to determine the amount of use by each class of custo- mer by meter size through various ranges of consumption Because the Commission had been charging customers outside the City limits rates that were two times the in-City rates, the analysis of the costs to provide service to these outside customers was an important component of the study ky, I The proposed water rates included three block declining rate schedules that were different for In-City and Out-of-City customers A separate rate schedule for out-of-City industrial users was developed due to their unique water use requirements A service charge, that increased by meter size was also developed To recover the costs of providing fire protection services, CDM developed private fire service charges based an service size, and public fire service charges based on type of customer. CDM also reviewed the Commission's connection charges and recommended methods to periodically update them The proposed wastewater rates also included a service charge, sur- charges for wastewater discharges that were higher strength than normal domestic wastewater, and rates for wastewater service based on metered water use YEAR CO1HPLEM 1983 ~f CLIENT NAM* City of Lompoc, California M PROJECT NAME* Water Rate Study/System Evaluation DESCRIPTICK. CDM was retained by the City of Lompoc to conduct a comprehensive water rate study, including an evaluation of the existing water system The services provided by CDM'B Management Consulting Services included An evaluation of the existing water system, including analyses of water wells and hydrology, watertreatment plant, and distribution system Establishing a Capital Improvement Program (including individual elements, scheduling, and capital costs) based on the evaluation of the existing system and projected future needs Review of the Water Department's historic and projected financial status including an analysis of existing rates and charges, historic water sales and service connections, and past and projected operation and maintenance costs Developing a computer model to analyze the rate impact of alternative capital Improvement Programs Revising the City's water rates and service charges based upon the City's existing rate structure policy, with consideration given to: capital replacement fund requirements, and, optional financing methods give alternative economics and growth assumptions r YEAR COMPLETED 1986 r r a r r r r PROTECT water and wastewater Rate Study LOCATICN Stuart, Florida DESCRIPTION Camp Dresser i McKee was retained by the City of Stuart to perform a water and wastewater rate study CDM's analyysis, revealed that an overall increase in operating revenue of 23 2 percent was needed For the water system, the required revenue increase was 20 7 percent; for the wastewater system the increase was 26 4 percent our review revealed that no revision to the water rate structure was needed However, CDM recommended three modifications to the wastewater rate structure which included converting the Residential Customer class to a rate structure incorporating a charge per thousand gallons of metered water consumption; a metered water out-off of 10,000 gallons per dwelling unit for wastewater charges for the Residential and Apartment House Customer Classes; and establishing a separate customer category for Apartment Houses Since Stuart's last actual rate increase seven years prior to CDM's study, operating and maintenance costs, capital costs, renewal and replacement needs, bond covenant revenue requirements, along with general inflation, had increased such that current cost recovery methods were inadequate to meet revenue requirements Capital expenditures relating to the wastewater deep well rehabilitation program also resulted in an increase in 06M costs and a depletion of capital reserves In addition to revising the water and wastewater rates, surcharges for water conservation were also developed and analyzed, along with the recommended rates, for their effects on various customer categories, both inside and outside the City CON found the existing outside City surcharges of 50 percent for the water system and 25 percent for the wastewater system valid and should not be changed in developing a fair and equitable schedule of rates, CDM determined revenue requirements for both the water and wastewater systems, examined operating expenses, capital improvements, forecasted cash flow through FY 1984-1985, estimated growth in water production and consumption, examined wastewater flows, future renewal and replacement and debt service costs, and various methods of cost recovery PROJECT DATE 1983 PROJMT Litigation Support LOCATION Waterford Township, MI Several apartment owners in Waterford Township, believing that the Township's water and wastewater charges were discriminatory, brought suit against the Township over the rates and fees they were charged Specifically, the plaintiffs believed they were Unfairly charged for o One-time water service connection fees o One-time sewer service connection fees o Minimum water service rates and charges o Minimum sewer service rates and charges The plaintiffs were charged one-time sewer connection fees based on the number of apartment units Each unit was charged a fee equal to the charge for a single family residence (equivalent dwelling unit) The plaintiffs claimed they should be charged at less than one equivalent dwelling unit per apartment as apartments use less water and discharge less sewage per apartment than do single family homes Further, the one-time water and wastewater connection fees established by the township provide for deferred payments over a number of years, with interest, by those buildings existing prior to the ordinance passage with no deferment for buildings constructed after the passage of the ordinance The Plaintiffs also claimed this was unfair Finally, the minimum water and wastewater charges for apartment buildings was based on the number of apartment units and was equal to that charged to single family homeowners The plaintiffs claimed this also was unfair because they ' used less water than single family buildings Though the rates and fees were not established by CDM, the township asked CDM to assist them in defending the case A CDM utility rate specialist consulted with the Township attorneys, helped prepare for the case, and provided depositions ' After both sides took depositions from the experts, settlement discussions began A settlement was reached before trial which resulted in no change in the one-time connections fees and a minor change in the way water and wastewater service minimum charges were to be calculated in the future YEAR COMPLETED 1985 CLIENT 11, City of Redlands, California PROJECT NUM: Water Rate Study/Revenue Program !Valuation DESCRIPTION CDR was retained by the City of Redlands to conduct a comprehensive water rate study, including an evaluation of the existing water system The services provided by CDM's Management Consulting Services included: Establishing a capital improvement Program (including individual elements, scheduling, and capital costs) based on the evaluation of the existing system and projected future needs Review of the Water Department's historic and projected financial status including an analysis of existing rates and charges, historic water sales and service connections, and past and projected operation and maintenance costs Developing a computer model to analyze the rate impact of alternalternativetivesCapital Improvement Programs, and financing a Revising the City's water rates and Service charges based upon the City's existing rate structuuredpolici, with consideration 1,liven ca methods give alternative e ~ resents, and, optional assumptions economics and growth YEAR 00MLETED. 1986 CLIENT NAME City of Pittsburg, California PROJECT NAMES Water Rate Impact Study/Revenue Program Evaluation DESCRIPTION CDR was retained by the City of Pittsburg to conduct a water rate impact study, including an evaluation of the existing revenue program The services provided by CDM's Management Consulting Services included Evaluating the impacts of alternative Capital Improvement Program on the revenue program (including individual elements, scheduling, and capital costs) based on the evaluation of the existing financial and projected future needs Review of the Water Department's historic and projected financial status including an analysis of existing rates and charges, historic water sales and service connections, and past and projected operation and maintenance costs Developing a computer model to analyse the rate impact of alternative Capital improvement Programs ~ Developing financing plans to adequately address upgrading and r expansion needs g 1986 WATER AND SEPE R RATE STLM AND COMPUTER MMEL LOCATION Allentown, PA r DESCRIPTION r After several years of increasing operating expenses in both Allentownts water and sewer utilities due to normal inflationary pressure and more costly federal regulations regarding drinking water and wastewater, CDM1s Management and Financial Services Consulting Group was asked to analyse Allentown's water and sewer rates CDM analyzed past and projected sewer and water utility expenses along with the estimated signatory revenues obtained from the projected expenses to derive the proposed water and sewer rates ' In determining the water rates, CDR performed a cost of service study, allocating water utility expenses to the categories of billing and collection, fixed costs, average day use, peak period usage and fire service. In reviewing these cost allocations along with the projected water consump- tion by Allentown's signatories, CDM recom ended a system of service charges based on customer's meter size to recover the costs associated with billing and collection in keeping with the current trend away from the traditional declining block system of rates whereby users pay less the more water they use, CDM developed three optional water rate schedules in response to this growing consumer interest in the rate setting process The options included a flat or uniform charge, a block rate schedule by differing customer class and a two-block decreasing rate schedule variant on the current rates ' Similar to the water system, CDM recommended a system of service charges based an meter size for the sewer system to recover billing and collection costs. Rates based an metered water consumption and wastewater quality were derived to recover the remaining costs. The impacts of the proposed systems of charges for both utilities, including the effects of the three optional water rate schedules, were examined for their effects on typical customers and on each of the signatories CDM's water and sewer rate study for Allentown was unique in that an extensive computer model was designed for each utility to be used by City personnel for periodically updating the water and sewer rates and for quickly and accurately showing the impacts of various financial and managerial decisions on all categories of users YEAR COMBL M 1986