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Home My WebLink About34700 / 88-393 . - Res. #393 Jou� A. M.�t�kA,soc�xrr:s Ura�n� R,�n:Consn:re.urs 1062a N DORT WASHW6TON ROAD �nEGWN, wI5CON5iN 53Wrz iEIEPHONE(414)4at-0650 December 22 , 1987 Mz. Gerald F. Konrad, P.E. Director of Public Works CITY OF OSHKOSH 215 Church Avenue P.O. Box 1130 Oshkosh, Wisconsin 54902 Dear Mr. Konrad: In accordance with your request we have prepared this proposal to review the existing sewer "user charges" presently in effect for the City of Oshkosh, and to update such user charges as required due to changes in operating expenses , additions to sewer plant investment, changes in number of customers and their usage patterns, and changes in the wastewater pollutant strengths of Category B customers, if any. The present rates are based on our "Report on Proposed Sewer User Charges" dated December 1985. As the City is aware from our previous study, the firm of JOHN A. MAYER ASSOCIATES is familiar with the practices and procedures of the EPA/DNR and the Wisconsin PSC with respect to sewer cost-of- service and zate design studies. The sewer cost allocation and rate design procedure utilized is based on user charge principles. This proposal is layered i❑ three parts or tasks: 1) revision and updating of the existing sewer user charges, 2) development of a sewer cost allocation model to be left with the City and training of City personnel in the use of the model, and 3 ) leaving behind the model on a working PC computer as a stand-alone sewer cost allocation computer model. These "layers" are cumulative. TASR #1: UPDATE EXISTIN6 SEWER USER CHARGES A. Determination of Billable Units of Service This is the single most important step i❑ the development of rates. The following information must be assembled : 1. Category A: # of customers S billed sewer usage for the most recent 12-month period. 2. Category B: Listing of customers, billed flow and strengths for BOD, SS and Phos. for the most recent 12-month period . - 9a - aes. #393 Mr. Gerald F. Koniad, P.E. December 22 , 1987 Page 2 3. Accumulate trailing 12-mo. billable from Tn. of Algoma, Winnebago M.H. Institute, and any other contractual users of the system. 4. Verification that items pl through X3 are representative of a "typical" year. 5. Reconcile revenues by applying present tariff to trailing 12-months billable units of service and comparing to booked revenue. Discrepancy should be narrowed to within 0. 58 if possible. B. Gather Sewer System Plant Investment Statistics 1. Update plant investment, by uniform system of accounts, for plant additions since the previous study. 2. Determine Replacement Fund Annual Accrual. C. Review Financial Information 1. Examine the Annual Reports/AUdits 1985-1986 2. Review any new debt issues outstanding since the previous study. 3. Capital Structure as of 12-31-87 4. Hudget (OMSR) projection for 1988. 5. Determine revenue requirement using the "utility basis" as well as the "cash basis" . D. Perform Cost-Of-Service Allocation Study 1. Review the cost allocation study performed for the December 1985 report and update as required. 2. Perform a cost allocation study and determine unit costs for flow, BOD, SS and Phosphorus . E. Design Sewer User Charqes 1. Design rates for Category A customers. 2 . Desig❑ rates for Category B customers. F. Prepare Letter Report On Proposed Sewer Rate58 Prepare a letter report on the results of the cost allocation study and our recommendations for proposed sewer user charge rates for the City. - 9b - . ' Res. #393 Mr. Gerald F. Konrad, P.E. December 22 , 1987 Page 3 TASK A2: DEVELOP SEWER USER CHARGE MODEL FOR USE BY CITY PERSONNEL IN PERIODIC OPDATING OF THE USER CHARGE RATES 1. Modify the sewer user charge model i❑ order to simplify input and output to the extent possible for easy updating by City personnel. 2. Conduct two 4-hour sessions with City personnel showing them how to update the sewer rate model. TASR �3: PROVIDE THE USER CHARGE MODEL ON A WORRING PC COMPUTER 1. If the City desires to have the user charge model provided along with the computer hardware to operate the software program, a used COMPAQ Portable 1 computer with 640K of RAM, and 2-360R disk drives could be provided. 2. A used 20-meg PLUS DEVELOPMENT HARD CARD could also be installed in the computer as an option. PROFESSIONAL FEE ESTIMATE Task #1: Update Existinq Sewer User Charqes Assuming that the City's Staff is able to gather most of the billing data and other data required for the updating process, the total professional time estimated to complete the project is 32 - 90 hours @ $60/hr. or a dollar range of $1, 920 - 52,400 . Task y2: Develop Sewer User Charge Model for Use by City Personnel in Periodic Updatinq of User Charqe Rates Modify the sewer user charge model to the extent practical for ease of data input and output by City personnel. Conduct two half-day training sessions, preferably a week or more apart, in order to allow time to °play with" the model before the second session. Estimated professional time: 30 hours - $1, 800. Task #3: Provide the Sewer User Charqe Model w/ Associated Hardware in Order to have a Complete Independent System Provide the COMPAQ Portable 1 computer as described above upon which to run the Sewer Oser Charge Model - $950 . Add the 20-meg hardcard disk drive described above - $600 . Out-of-pocket expenses for data processing, travel , telephone, xerox and other expenses directly related to the specific assignment will be billed on a dollar-for-dollar basis and are in addition to the professional fee. These expenses are estimated to be in the $300 - $400 range. - 9c - Res. #393 Mr. Gerald F. Konrad, P. E. December 22, 1987 Page 4 COMPLETION TIlfE It is understood that time is of the essence with respect to getting the sewer rates revised. If the City Staff can provide assistance in gathering the data required, we will make every attempt to complete Task #1 and have the rate recommendation to the City within 15 working days from noti£ication of acceptance of Task ►1 of this proposal. Should further information be needed, I would be more than happy to respond to your request. Re tfully submitted, JOHN A.yMAY ASS IATES John A. Mayer � JAM/cpq - 9d - January 7 , 1988 g393 AESOLUTION (CARRIED ______ LOST _____ LAID OVER _____ WITHDRAWN ) PURPOSE: APPPOVE AGREEMENT FOA SEWER CHARGE REVISIONS INITIATED BY ; City Administration WHEAEAS, from time to time, it is necessary for the City of Oshkosh to review existing sewer user charges to fairly assess all users for the costs of operating the sewage treatment plant ; and WHEREAS� the City has solicited a proposal for services from its past utility rate consultant to update the prese�t rates based on a December 1985 report ; antl WHEREAS� it is advantageous at this time to accept services for Tasks 1 and 2 of the proposal of John A . Mayer Associates , Mequon ; NOW, THEPEFORE� BE IT RESOLVED that the attached proposal for sewer charge revisions from John A. Mayer Associates , 10624 N. Port Washington Aoad , Mequon , Wiseonsln 53�92 is accepted and approved as follows : Task 1 -- Update Existing Sewer User Charger 32 to 40 hours @$60/hr . or $1 ,920 to $2 ,400 Task 2 -- Develop Sewer User Charge Model 30 hours @$60/hr . -- $1 , 800 BE IT FURTHER RESOLVED that the proper City officials are authorized and directed to enter into an appropriate agreement for such services . Money for this purpose is hereby appropriated from: Account No. 950-560 -- Sewer Utility� General & Administrative Professional Services . SUBD�ITTED BY �---------�— __.-----�__ - .J � v .a.s._.� APPROYID . - 9 - ov o � � L T 7 � M L � � c 3 ip C N � � i � ~ N O Ol p W �.ry � � T � 4 4 r�l +� �n 1� Ol C C [h N O YF E'� i •• p 41 �O O � N'.+ � .v ¢ � t > C F- d' v mv �0 06 O_' Q K '7 E CJ