HomeMy WebLinkAboutDocumentation_Regular_Tab 11-G_5/14/1998 RESOLUTION NO. 26-97/98
4 A RESOLUTION OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, APPROVING AN ENGINEERING SERVICES
PROPOSAL WITH REESE, MACON & ASSOCIATES OF
LAKE WORTH, FLORIDA, FOR WATER SYSTEM RATE
ANALYSIS IN THE AMOUNT OF $24, 500 AND
AUTHORIZING THE VILLAGE MANAGER TO EXECUTE
THE SAME ON BEHALF OF THE VILLAGE.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. The Engineering Services Proposal with Reese,
Macon, & Associates of Lake Worth, Florida, for Water System
Rate Analysis, in the Amount of $24, 500, Attached Hereto as
Exhibit "A" and Incorporated by Reference as Part of this
Resolution, is Hereby Approved and the Village Manager of
the Village of Tequesta is Authorized to ;Execute the Same on
Behalf of the Village of Tequesta.
THE FOREGOING RESOLUTION WAS OFFERED by Councilmember
, who moved its adoption. The motion was seconded by
Councilmember , and upon being put to a vote, the
vote was as follows :
FOR ADOPTION AGAINST ADOPTION
The Mayor thereupon declared the Resolution duly passed and
adopted this 14th day of May, A.D. , 1998 .
MAYOR OF TEQUESTA
Elizabeth A. Schauer
ATTEST:
Joann Manganiello
Village Clerk
wp60\res\26-98
Village �'o T uesta Memo
village of Tequesta
To: Thomas G. Bradford, Village Manager MAY 0 8 1998
. From: Thomas C. Hall, Water System Manager eI.
Date: May 8, 1998 I Village Manager's Office
Subject: Water System Rate Analysis
Now that we are commencing construction of our Reverse Osmosis Treatment Facility, which is
anticipated to be completed in November of 1999, it is incumbent upon us to begin reviewing the
adequacy of our various rate structures as we proceed into the new millennium with our new treatment
processes. As expected, we are incurring new debt as well as a commitment to the provision of a safe
and potable water supply. We, therefore, must periodically review all rates, charges, and fees to
determine the adequacy of supporting the operation of our system. Although we recently adopted a rate
increase which affects base and step rates, we must also review all those ancillary charges which support
the operation of the Department as well as reviewing our conservation step rates.
The first item which needs to be addressed, is the review of our capital improvement charges. These
charges are those fees paid by new connections to the water system for their anticipated plant capacity
which is required to serve them and other future connections.
The second item to be reviewed, will be to perform a cost evaluation of the miscellaneous charges such
as meter installation fees, and customer deposits. An analysis will reveal to us whether or not our
current fees are adequate to cover the direct charges for customer service, field service, and other related
activities directly related to providing services to our customers by the Utility.
The third item to be reviewed will be an evaluation of water consumption and the current block
structure in effect to identify options for water pricing This analysis will indicate whether or not our
inclining blocks are too stringent, or too lenient, and if any adjustments should be made to tiers and
quantity charges.
Attached, you will find an engineering services proposal from our engineering consultant, Mr. William
D. Reese, P.E., of Reese, Macon & Associates, who will utilize the services of Mr. Robert Ori, from
Public Resources Management Group, to undertake analysis of the above items. As you are aware, Mr.
Ori was instrumental in the preparation of our block structure pricing adopted last year.
The attached engineering services proposal from Reese,Macon&Associates indicates for scope items 1
through 6, which includes all fees and charges subcontracted to PRMG, a lump sum to be charged
totalling $24,500.00. Funding for this important analysis, will be provided by the Water Enterprise
Fund, Reserves balance.
Please place this item on the Village Council Agenda of May 14, 1998, for their review and approval.
TCH/mk
Attachments.
Hall sMemo.TGB3.8.98
May-08-98 11 :54A Reese,Macon&Assoc_ P_01
1 y
RSA
Reese,Macon and Associates,Inc. 10 •
May 8, 1998 h
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Village of Tequesta
P.0_ Box 3474 �G
Tequesta,FL 33469-0474
ATTN: Thomas C. Hall, Water System Manager
RE: Capital Improvement and Service Fee Review Q x
Gentlemen:
We are pleased to submit this proposal for engineering and financial services in connection with
the above referenced project. REESE,MACON and ASSOCIATES,INC.,hereinafter referred
to as the Engineer, shall perform the services as documented below for the Village of Tequesta,
hereinafter referred to as the Client.
SCOPE
The Engineer understands the Scope of Work shall include services relative to the development of
capital improvement charges and miscellaneous service fees in order to provide for the recovery
. of the full cost of providing services to the Village's water system customers. It should be noted
that the bulk of these services shall be performed by Public Resources Management Group
(PRMG).
The following specific tasks will be performed by the Engineer:
1. Data Acquisition and Review: Prepare a data request to obtain information to be compiled
by the Village relative to the review of the Capital improvement Charges and
miscellaneous fees. Information to be obtained and reviewed will include financial(e.g.,
fixed asset records), operational (e.g.,plant utilization and available reserve margins),
statistical(e.g., current plant utilization rates), and other water system information as
deemed appropriate. It is anticipated that a meeting with the Village staff will be held in
order to discuss the needs for this information as it relates to the project,to discuss
charge/fee objectives and issues, and to identify specific requirements for the development
of the utility rate making assumptions for which a fee will be based. Also, a detailed data
request will be prepared prior to the attendance of the on-site visits in order to provide the
Village an indication of the data requirements needed to conduct the study.
2_ Development of Capital Improvement Fee: Based on information obtained during Scope
Item 1, a Capital Improvement fee will be developed to be applied to future customers of
the water system. The capacity fee will be based on an evaluation of the existing and
6415 bake Worth Road • Suite 307 • Lake Worth,FL 33463-2907
Telephone(561)433-3226 • Farslmtk(561)433-8011
e-mail • ram((h netcom.com
May-OS-98 11 :54A Ransa,Macon&Assoc_ P_O2
anticipated water pant capacity required to serve future customers/connections, the level
of service requirements dictated by Village policy and/or regulatory practice, and other
factors as may affect the derivation of the fee. A review of the existing Capital
Improvement fee application methodology as reflected in the Village's current utility rate
ordinances will also be conducted to ensure that the proposed fee is consistent with such
methodology. To the extent that revisions in the Capital Improvement fee methodology
are warranted, the Engineer will notify the Village of such changes. In addition to the
derivation of the fee, preparation of a comparison of the proposed fee with other
neighboring utilities to the Village will be developed in order to indicate the competitive
relationship of the proposed fee. Finally, the Engineer will assist the Village's legal
counsel in the preparation of any modifications to the utility rate ordinance due to any rate
or application modifications which may be recommended in the study of such fees.
3. Miscellaneous Service Charge Evaluation_Perform a cost evaluation on the miscellaneous
service fees,which will include an evaluation of the adequacy of customer deposits,
identified during the Scope Item 1 activities which need to be re-evaluated and updated to
ensure cost recovery or need to be adapted due to the absence of such fee structure for
Village's water system. Based on data availability and the results of data acquisition
activities conducted in accordance with Scope Item I, evaluate the currently miscellaneous
charges in place and propose new charges based on the direct and indirect costs of
providing service relative to the specific customer request for which the fees are
developed or in accordance with Village policy. Direct charges will include the cost of
customer service,field services,and other related activities directly related to providing
the service as requested by the customer or provided by the utility. The indirect cost
component will include the determination and allocation of administrative overheads to the
fee to ensure total cost recovery from the customers. It is anticipated that the information
to be relied upon in the development of the fees will be based on the attendance of staff
interviews with the Village to identify the work effort or flow required to provide the
services. Where applicable,a comparison of the existing and proposed fees being
evaluated will be conducted with other neighboring utilities to present the competitiveness
of such fees and for Village council consideration.
4. Water Rate Evaluation: Assist the Village in the evaluation of the water consumption
blocks currently in effect to identify options for water pricing. The Engineer will review
bill frequency information provided by the Village to identify consumption patterns by
class of customer and will develop revised rates as deemed appropriate by the Village
staff It is expected that the revenue requirements delineated in the Bond Feasibility
Report for the fiscal year ended September 30, 1998 will serve as the basis for the revenue
requirements for which rates are discussed. The revised water sales(revenues)projections
and a comparison of rates will be developed to illustrate any potential rate structure
changes to the Village.
5. Presentation: Prepare a report delineating the assumptions,analyses, and the data relied
upon in the development of the proposed fees and rates. The report will be prepared in
support of the presentation to the Village Council. Attend a public hearing before the
Village Council to present the results and recommendations of the capital facility charge
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May-08-9B 11 :55A Reese,Macon&Assoc_ P_03
and miscellaneous fee study. Additionally, assist the Village Council in the preparation of
any revised rate ordinances required to adequately present the results of the study to the
Village Council for adoption.
6. Meetings: It is contemplated under this scope of services that four(4)meetings will be
held with the Village. A summary of the meetings is as follows:
Description Number of Meetings
• Kick-off Meeting 1
Staff Interview(s) 1
Presentation of Issues and Results to Staff 1
Attendance of Public Hearing 1
Total Number of Meetings 4
7. Provide additional services as mutually agreed upon in writing.
The above scope is predicated on the assumption that the Client shall furnish, at no cost to the
Engineer,all available pertinent information including previous financial reports, budgets and
other data relevant to the performance of the above services for the project. In addition, the
Client shall designate,in writing, a person to act as the representative for services performed
under this agreement_
TIME OF PERFORMANCE
The Engineer acknowledges that the time frame for this project is critical. Items 1 -6 of the
Scope of Services will be completed within(90)calendar days after receipt of an executed
authorization except for delays beyond the control of the Engineer.
FEES
For Scope Items 1-6 the Engineer shall be paid a lump sum fee of twenty four thousand five
hundred dollars(S24,500.00). This includes all fees and charges subcontracted to PRMG.
Exclusive of PRMG subcontracted services, if services are required in the performance of the
above scope, beyond those normally provided by the Engineer,which must be sublet, the
Engineer shall order the work after obtaining the written authorization of the Client. If the
Engineer is requested to subcontract the work directly, a 10% handling charge will be added to
the subcontractors invoice.
Invoices for services rendered are issued on a monthly basis and are due within thirty(30)days of
the invoice date. Interest at a compound rate of one and one-half percent per month shall be
charged to any past due statements. Interest shall be computed on past due statements from the
date of the invoice.
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'.r.
COST ESTIMATES
Construction cost estimates are developed from knowledge of market conditions and based on the
experience of the Engineer. However,the Engineer exercises no control over the competitive
bidding process and,therefore,makes no guarantee of the accuracy of the estimate when
compared to previous estimates or actual bids.
TERMINATION
This agreement may be terminated by either party by giving thirty(30)days written notice. The
Engineer shall be paid for all services rendered prior to the termination date_
ACCEPTANCE
Acceptance of this proposal may be indicated by executing this document in the space provided
below_ This contract shall be considered void if not executed within thirty(30)days from the
above date. Upon execution of this agreement the Client shall return one copy to the Engineer.
Very truly yours,
REESE,MACON and ASSOCIATES, INC.
•
William D.Reese, P.E.
President
Accepted By:
VILLAGE OF TEQUESTA
BY:
Thomas G. Bradford, Village Manager
•
DATE:
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