HomeMy WebLinkAbout1991 07 10 - CM TransmittalA48%,
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
SUBJECT: Water & Sewer
Approved For Submittal By:
City Manager 65 � n^' �_
Dept. of Origin: City Manager
Date Submitted: 07/03/91
For Agenda Of: 07/10/91
Exhibits:
EXPENDITURE AMOUNT APPROPRIATION
REQUIRED: BUDGETED: REQUIRED:
SUMMARY STATEMENT
At its Regular Meeting of June 26th, the Sebastian City Council
formally received a report from its consulting engineers, Hartman
& Associates, Inc., and its special legal counsel, Thomas Cloud.
The report detailed findings and recommendations of the City
providing water and waste water services within the City limits.
The report concluded that it is in the City's best interest to
pursue the acquisition of the water and waste water facilities
owned by both GDU and Indian River County, which are situated
within the City. The report further recommends that the City
begin to "unbuckle" current agreements with Indian River County
and to replace those agreements with new inter -local agreements
which address service areas, flow diversions, cooperation, inter-
connections, wholesaling, transmission cost sharing and host of
other issues.
I encourage the City Council to look at its actions in getting
into the water and waste water utilities as an "irrevocable"
decision. Indian River County has been more than cooperative
with the City in both providing water and sewer services within
the City and agreeing to relinquish its franchise and work with
the City to allow the City to provide water and sewer services
within the City. However, we should not view Indian River County
as a safety net should we pursue providing water and waste water
services. In other words, we should be prepared to make
immediate and long term commitments to plan, implement, and
provide services to the City. To that end, the City should be
taking certain steps immediately to begin the lengthy process of
developing water and waste water services to the City.
First, the City should appoint its initial Utilities Department
staff, consisting of, at a minimum, a Utilities Director and
support services. The City should have a Utilities Director on
board to build the Utilities Department from from the ground up.
Initially, the Utilities Department will be the coordinator
between all the efforts to unbuckle County agreements and to
acquire GDU and certain County facilities. This will mean
coordinating and developing strategies involving legal,
engineering, financial, and public relations efforts. Second, the
City will need to appoint consulting engineers to assist in the
negotiations with the County but more importantly in the required
engineering evaluations for the acquisition of the GDU
facilities. Third, the City will need to appoint special legal
counsel whose experience and expertise lies in the field of
publicly owned utilities and public acquisitions of private
utility systems.
RECOMMENDED ACTION
I recommend that the City Council initiate three (3) concurrent
efforts:
1. Authorize the position of Utilities Director and
clerical support and direct the City Manager to hire individuals
to these positions.
2. To engage special legal counsel. Given Tom Cloud's
unique background and expertise, I recommend that we negotiate an
engagement with him.
3. To engage consulting engineers. The engagement of
consulting engineers must be in compliance of Chapter 287,
Florida Statutes, known as the "Consultants Competitive
Negotiations Act".
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
SUBJECT:GDU Franchise
Assignment
Approved For Submittal By:
City Manager
EXPENDITURE
REQUIRED:
Dept. of Origin: City Manager
Date Submitted: 08/22/91
For Agenda Of: 08/28/91
Exhibits:
- Resolution No. R-91-31
- Termination Agreement
AMOUNT
BUDGETED:
SUMMARY STATEMENT
APPROPRIATION
REQUIRED:
On December 12, 1991, the City entered into an agreement with
Indian River County whereby the City assigned its rights under
the GDU Franchise to Indian River County. These rights included
the ability to purchase GDU facilities within the City. On July
10, 1991 the City Council adopted a briefing document, referred
to as the "Hartman Report" which contains specific
recommendations which would create a City owned water and sewer
utility. Those recommendations included an "unbuckling"
agreement between the City and the County to nullify the GDU
Assignment Agreement. The attached Resolution and Agreement
would have the effect of nullifying the December 12, 1990
Assignment Agreement.
RECOMMENDED ACTION
Move to adopt Resolution R-91-31.
VU3 �
DATE:
TO:
FROM:
STAFFED AND
PREPARED BY:
SUBJECT:
,..
UTIL (SEBRATE.HEAj'):rb
INDIAN RIVER COUNTY
AGENDA ITEM
NOVEMBER 12, 1991
JAMES E. CHANDLER
COUNTY ADMINISTRATOR
TERRANCE G. PI
DIRECTOR OF UT
HARRY E. ASHER
ASSISTANT DIREC OR bF UTILITY SERVICES
RECEIVE
Wi
AGREEMENT FOR THE DEVELOPMENT OF CHARGES FOR
PROVIDING WHOLESALE WASTEWATER SERVICES TO CITY OF
SEBASTIAN
On April 3, 1990, the Board of County Commissioners approved the
Department's proposed agreement with CH2M Hill to furnish Economic
and Financial Consulting and Services as may be authorized by the
County from time to time. Task One of the agreement was to perform
a complete study and review of the utility ordinance and rate and
charges in effect at that time. Task One of the agreement was
completed and on March 12, 1991, the Board of County Commissioners
adopted Ordinance 91-9 and Resolution 91-31 adopting the rates,
fees, and charges for use by the Department of Utility Services
effective April 1, 1991.
ANALYSIS•
As the Board of County Commissioners is aware, the City of'Sebastian
has requested a revocation or cancellation of the franchise given to
the County to provide water and wastewater service within the city
limits of the City of Sebastian. The County has agreed to
relinquish its franchise rights within the City and on March 13,
1991, the County sent a letter to the City offering to relinquish
its franchise rights. On April 5, 1991, the City conditionally
accepted the County's offer subject to completion of the necessary
documents containing the terms and conditions acceptable to both
parties, so that agreements, ordinances, and resolutions may be
rescinded in such manner as to not impact third parties.
The County and City staff members have met on several occasions to
work out interim plans to effect the set)aration of the utility
systems and are developing the provisions of.an interlocal agreement
as an acceptable way to satisfy the concerns of all parties. One
provision of the interlocal agreement would be for Indian River
County to accept and treat wastewater generated within the
wastewater system owned and operated by the City of Sebastian. This
provision will require the County to "Develop a nondiscriminatory,
cost -of -service rate to be charged to the City for treatment of the
wastewater, which rate shall take into account the fact that the
City is utility service provider for all classes of units --within the
City. The rates and components which make up the rates would be
attached and incorporated into the agreement."
The Department reviewed these requirements with CH2M Hill, its rate
consultant, and requested a Scope of Services for the development of
rates and charges for providing wholesale wastewater service to the
City of Sebastian. The fee for providing the Scope of Services
under Work Authorization Six (attached) will be $9,640.00, with a
charge of $1,490.00 for additional meetings if required. The
project is to be funded from account No. 471-218-536-033.19 (other
professional services - wastewater).
.-\
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RECOMMENDATION•
CEO
The staff of the Department of Utility Services recommends approval
of the attached Work Authorization Six and authorization for the
Chairman of the Board of County Commissioners to execute the
agreement.
HEA:rb
Attachments
APPROVED FOR AGENDA:
BY f
/'James E. Chandler
County Administrator
FOR // —/
Date
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Indian FINt Go
Admin.
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Rick Mgr,
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Work Authorization 6
Development of Charges for Providing Wholesale
Wastewater Services to City of Sebastian
This work authorization is conducted under the Agreement to Furnish Economic and
Financial Consulting Services to Indian River County, dated April 3, 1990.
Purpose
The City of Sebastian has requested Indian River County to accept and treat
wastewater generated within a wastewater system owned and operated by the City of
Sebastian. Specific activities that the County will conduct to provide this service
include the following:
• Meter wastewater flows from the City of Sebastian, collected at several
points of connection to the County's system
• Convey the wastewater to the County's wastewater treatment plant
• Treat the wastewater to a standard consistent with local, state, and
federal environmental requirements
• Dispose of the treated effluent in a manner consistent with local, state,
and federal environmental requirements
The County has established a retail wastewater rate "structure designed to recover the
full cost of providing wastewater services to individual customers in the County's
service area. The County needs to identify the components of the retail wastewater
fees applicable to providing wholesale wastewater services to the City of Sebastian.
The purpose of this work authorization is to develop the appropriate charges for
Indian River County to provide these services consistent with the County's adopted
rate structure and schedule.
Project Tasks
The project will be conducted in six tasks:
• Project Kickoff
• Estimation of Cost of Service
• Development of Rates
• Preparation of Report
dbmO14976.51 1
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• Meeting with County and City Staff
• Presentation of Recommended Rates at Rate Hearing
In addition to these six tasks, CH2M HILL will participate in additional meetings as
necessary. This participation is addressed as a seventh task.
Task 1 --Project Kickoff
CH2M HILL will meet with County and City of Sebastian staff to review the
proposed operating agreement between the County and the City and gather informa-
tion relating to the cost of providing wholesale wastewater services to the City of
Sebastian.
Task 2 --Estimation of Cost of Service to City of Sebastian
Based on the rates developed during the April 1991 rate study and October 1991
update, CH2M HILL will estimate the utility costs allocable to providing wastewater
services to the City of Sebastian. Costs associated with the retail rates developed in
the April 1991 rate study will be adjusted to take into account the City's providing
collection, meter -reading, and billing services to individual customers.
Task 3 --Development of Rates
CH2M HILL will adjust the County's current base facilities and commodity charges
for wastewater services to reflect the level of service to be provided by the City of
Sebastian, and prepare a base and commodity charge system applicable to the City of
Sebastian and a basis for adjustments in charges in the future.
Task 4 --Preparation of Report
CH2M HILL will prepare a draft report presenting the proposed base facilities and
commodity charges, the assumptions and methods applied in developing the proposed
charges, and the calculations used in developing the proposed charges. The report
will include proposed revisions in the County's adopted rate ordinance and rate
resolution. Five copies of the report will be provided. CH2M HILL will meet with
County staff to discuss the draft report. Upon receiving County review comments,
CH2M HILL will revise the report and provide 15 copies to the County.
Task 5 --Meeting with County and City Staff
CH2M HILL will meet with County and City staff to summarize and discuss the
results of the analysis. CH2M HILL will make any necessary revisions in the report
following the meeting.
dbm0t71076.51 2 to 2/
IQ
Task 6 --Presentation of Recommended Rates at Rate Hearing
CH2M HILL will present the recommended rates, including proposed modifications
to the County's adopted rate ordinance and resolution, at a public hearing.
Task 7 --Additional Meetings as Required
CH2M HILL will participate in additional meetings at the request of the County.
Schedule
CH2M HILL will complete tasks 1 through 5 within days of receiving authorization
to proceed, based on receiving comments on the draft report within 7 days of the
County's receipt of the draft. Task 6 will be completed based on the County's
schedule of the rate hearing.
Compensation
The County will compensate CH2M HILL on a lump sum basis of $9,640. Compen-_
cation will be in accordance with the Agreement to Furnish Economic and Financial
Consulting Services to Indian River County, Article 2.A. Table 1 shows the estimated
project costs by task. CH2M HILL will participate in additional meetings in
accordance with provisions of Task 7 above at a lump sum cost of $1,490 per
meeting.
Indian River County ,
Date:
CH2M HILL Southeast, Inc.
dbmO12/076.51 3
TABLE 1
DEVELOPMENT OF CHARGES FOR PROVIDING WHOLESALE
WASTEWATER SERVICES TO CITY OF SEBASTIAN
BUDGET ESTIMATE
r
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Total
Task 7
Kickoff
Cost of Sery
D.ev of Rates
Prep of Rep
Meeting
Presentation
Add Meetings
Cost Item
Hours
Hours -Q9SI
Hours S9SI
Hours _C_45I
Hours _C4SI
Hours
Hours QHours
—Q=
Labor
Subtotal
Hours &
Labor Cost
12 $506
16 $542
14 $479
22 $651
20 $549
28 $801
112 $3,528
20 $549
Full Labor
Cost@2.35
$1,190
$1,274
$1,126
$1,529
$1,290
$1,882
$8,290
$1,290
Direct Costs
Subtotal
Direct
Costs
$100
$250
$250
$500
$200
$250
$1,350
$200
Total Costs
$1,290
$1,524
$1,376
$2,029
$1,490
$2,132
$9,640
$1,490
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