VII(C) Approval And Authorization For Burton & Associates To Submit A Proposal To Update The Water , Wastewater, Reclaimed Water Rate Study Agenda 11-07-2000
Item VII C
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
Ocoee5 - S.SCOTT VANDERGRIFT
°� i CITY OF OCOEE
COMMISSIONERS
a 150 N.LAKESHORE DRIVE DANNY HOWELL
RUSTY JOHNSON
v OCOEE,FLORIDA 34761-2258 DANSCOT HOWE L
n'"y :•. ?" (407)656-2322 NANCY J.PARKER
1. O Gov
CITY MANAGER
ELLIS SHAPIRO
MEMORANDUM
DATE: October 26, 2000
TO: The Honorable Mayor and Board of City Commissioners
FROM: James W. Shira, P.E., City Engineer/Utilities Director
SUBJECT: Water, Wastewater, Reclaimed Water Rate Study
On April 20, 1999 the City Commission engaged the services of Burton &Associates and
directed that they perform a Water Utility Rate Analysis. This analysis was to evaluate the
conservation rate requirements of the city's Consumptive Use Permit and determine alternative
rate structures that will comply with the CUP requirements while meeting the City's objectives
regarding rate structure and customer impact.
Mr. Mike Burton presented the results of that analysis to the City Commission at the February 1,
2000 meeting. Mr. Burton discussed the need for a detailed analysis of water consumption in
Ocoee in order to accurately determine appropriate rates. At that meeting, the City
Commission requested that he submit a proposal for the additional work.
Burton &Associates submitted that proposal, and it was approved by the City Commission on
April 18, 2000. The work was begun immediately based on the financial information in the
1999/2000 budget, and Burton &Associates has submitted a draft report for staff review. Upon
review, we determined that it would be best to use the latest available data for the final report,
and this data would be the newly approved 2000/2001 budget data.
The final report will detail the City's ability to operate, maintain and expand the water,
wastewater and reclaimed water systems based on revenue and expense parameters, so it is
critical that the most current data be used in the analysis of that ability.
To date, Burton &Associates has, on three different occasions, been authorized to perform
three distinct tasks, those being a water and wastewater revenue sufficiency analysis, a water
and wastewater rate structure analysis and a reclaimed water program rate analysis. Rather
than receive a separate report for each of these activities, we believe it would be more useful to
have a single comprehensive report which details the results of all three tasks.
To that end, we requested that Burton &Associates submit a proposal to update the water and
wastewater revenue sufficiency report based on the 2000/2001 budget, and to prepare a single
comprehensive report containing the results and recommendations of all of their work.
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Burton &Associates has submitted a proposal in the amount of$9,505.00 to perform this work.
A copy of the proposal is attached for your review. As indicated, their schedule calls for
submission of a draft report by November 17, 2000.
I recommend that the City Commission authorize Burton &Associates to proceed with the work
outlined in their proposal dated October 26, 2000 for a not-to-exceed fee of$9,505.00.
Funding for this work will come from the Utility Administration Professional Services account.
As always you are welcome to come into my office or call me if you have any questions on this
or any other topic.
JWS/jbw
BURTON &
ASSOCIATES
October 26, 2000
Mr. Jim Shira, P.E.
Director of Engineering and Utilities
City of Ocoee
150 N. Lakeshore Drive
Ocoee, FL 34761-2258
RE: Water and Wastewater Rate Study - Additional Services Authorization
Dear Mr. Shira:
In our last worksession with you and City staff, it was decided that in order to present the most
accurate projections possible in the Final Water and Wastewater Rate Study Report, the Revenue
Sufficiency Analysis portion of the Study should be updated with FY 2001 budget data. As
requested, I have prepared this Additional Services Authorization request to update the above
referenced Revenue Sufficiency Analysis in accordance with the FY 2001 budget.
I have included a Project Workplan & Cost Estimate schedule for this update of the revenue
sufficiency analysis. This schedule shows that successful completion of this additional work will
require approximately 79 hours for a total estimated additional cost of$9,505.
We estimate that we will be able to provide the City with a draft report by November 17, 2000.
If you have any questions, please do not hesitate to call me at (904) 247-0787.
Ve t y yo ,
'c g on
resi ent
MEB/jv
Enclosure
2902 Isabella Blvd.,Suite 20■Jacksonville Beach,Florida 32250■904/247-0787
Figure 1
CITY OF OCOEE
UPDATE OF WATER AND WASTEWATER REVENUE SUFFICIENCY ANALYSIS
PROJECT WORKPLAN&COST ESTIMATE
ESTIMATED MANHOURS
Burton 6 Associates
PROJECT TASKS PROecT Paaecr PnoccT TOTAL
C•RECTO0 MQWO€R CCHRLT WT CLERICAL PROLCT
Harty rate—> $1S0 $125 $85 540
TASK 1- UPDATE WATER AND WASTEWATER REVENUE SUFFICIENCY ANALYSIS WITH FY 2001 BUDGET
1.1 Update FAMS model with FY 2001 budget data 4 16 0 0 20
1.2 Worksession with City staff to discuss updated revenue sufficiency analysis 2 • 2 2 0 6
1.3 Adjust FAMS model based upon input from City staff during worksession 2 8 0 0 10
1.4 Worksession with City staff to discuss adjustments to updated revenue sufficiency analysis 2 2 2 0 6
1.5 Prepare draft report for review by City staff including: 4 8 2 4 18
o Capital Improvements Program
- Project listing by year
- Optimum funding source by project by year
o Borrowing Program
- Borrowing required(by source)to fund CIP projects not funded by other sources to include but not
necessarily be limited to revenue bonds and State Revolving Fund Loans
- liming of bond issue(s)/loan(s)to provide required borrowed funds
- Annual debt service of bond issue(s)/loan(s)
o Revenue Sufficiency Analysis
- Annual revenue projections
- Annual rate plan to provide sufficient revenues
o Sources and Uses of Funds Analysis
o Funds Analysis
- Spend down limits(minimum reserve requirements)by fund
- Beginning and ending funds balances by fund by year
1.6 Worksession with City staff to discuss updated revenue sufficiency analysis draft report 2 2 2 0 6
1.7 Finalize revenue sufficiency update report based upon input from City staff during worksession 4 6 1 2 13
ESTIMATED MANHOURS 20 44 9 6 79
ESTIMATED CONSULTING FEE $3,000 $5,500 $765 $240 $9,505
ESTIMATED EXPENSES NA
ESTIMATED CHARGES $9,505
SOURCE:BURTON&ASSOCIATES
C SATAUMOCCE000 nS+L.ww 10/11/2000