Res 1136 12/15/1970r
RESOLUTION NO. //,l
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
That certain proposal dated November 12, 1970, addressed
to Gerald G. Fox, City Manager, by Black & Veatch, Consulting
Engineers, providing for the preparation of a water and sewer
revenue requirements and financing study and the preparation of
a cost of sewerage service and rate study for the City of Wichita
Falls, is hereby approved and accepted, and the City Manager is
hereby authorized to execute the acceptance of said proposal for
the City of Wichita Falls.
PASSED AND APPROVED THIS the 15th day of December, 1970.
77- 211°"1:4W4I'M
MAYOR
ATTEST:
Njc_./-1-/uf4LZ6W-6-
City Clerk
BLACK & V E A T C H
AREA CODE 016
CONSULTING ENGINEERS TEL.301-7000
1500 MEADOW LAKE PARKWAY
MAILING ADDRESS, P.O.PDX NO 6405
AIR MAIL KANSAS CITY, MISSOURI 64114
November 12, 1970
Mr. Gerald G. Fox
City Manager
City Hall
Wichita Falls, Texas 76301
Dear Mr. Fox:
We are pleased to have the opportunity to submit this proposal for engineering
services for the preparation of a revenue requirement and financing study, and
a rate study for the City of Wichita Falls. We appreciated the time you and
Mr. Ruhmann spent in meeting with us November 10 in discussion of these matters.
In accordance with your request we are submitting this proposal. It is in two
parts, the first phase pertaining to a revenue requirement study of the sewerage
and water systems recognizing all elements of annual costs and financing of
annual costs. The second phase of the study would involve a cost of sewerage
service analysis in which an allocation of costs to the customers would be made
based on service requirements. Rate schedules would be designed and proposed
which would recover allocated costs from the appropriate customer groups.
The principal components of the studies of the sewerage and water systems are:
Phase I - Revenue Requirements and Financing Study
1. Review of the operation and maintenance expenses associated with
the sanitary sewage collection system, the sewage treatment plant,
utility accounting billing, and collecting operations, and
appropriate administrative and general functions. The study will
also include a review of expenses of the water system including costs
of supply treatment, pumping, distribution, and other general and
administrative costs. The evaluation of current costs will reflect
future level of service.
2. Review of debt service requirements. This review would include the
evaluation of all currently outstanding debt, both general
obligation issues and combined water and sewerage systems rc . nue
bonds, separated between sewerage and water systems.
BLA C. K 11 V EATC H
Mr. Gerald G. Fox 2 - November 12, 1970
3. Review of annual capital additions and replacements and
projection of requirements which should be met by both the
sewerage and water systems, as determined by the City.
4. Review and programming of major capital improvement financing
requirements of both the sewerage and water systems to be
furnished by City.
5. Review of annual revenues of the sewerage and water systems and
estimates of future revenues recognizing customer growth, future
area development, customer contributions , and such other factors
as may be pertinent, including the effect of climatic and
economic factors on historical revenues.
6. Analysis of methods of meeting ten years of annual revenue
requirements through cash financing, debt financing, and federal
and state subsidy of capital improvements either through general
obligation or revenue bonds, or a combination thereof. The review
of financial programs will of necessity require an examination of
the sewerage and water systems operations.
7. Presentation of the Phase I study of revenue requirements in report
form.
Phase II - Cost of Sewerage Service and Rate Study
1. Allocation of current and anticipated annual revenue requirements
of the sewerage system to the cost functions of volume, strength,
and customer related costs and the application of the allocation
to determine annual unit costs of service.
2. Review of customer classes, including residential, commercial,
industrial, and any special customers, contribution responsibility,
including sewage volume and average sewage strength. This review
would evaluate the effect of infiltration in effecting costs of
providing service.
3. Allocation of annual revenue requirements to each customer class
based on class responsibility and the unit costs of service.
4. Review of annual billings, by customer classes, correlated with
a study of climatic conditions and other factors contributing to
annual billing patterns. This review and further rate analysis
will require a detailed bill tabulation to be furnished by the
City, with supervision, as required, by the Engineers.
r
B L A ( K & V E A T C H
Mr. Gerald G. Fox 3 - November 12, 1970
5. Design of schedule of charges which will recover the annual
revenue requirements of the customer classes in accordance
with the cost of service study. If warranted and desired a
schedule of industrial waste surcharges would also be
formulated.
6. Presentation of the Phase II study of sewerage costs of service
and rates in report form.
It is estimated that both phases of the study could be completed six months
after receipt of the summarized bill tabulation and capital improvement
program data to be furnished by the City.
The charges for the service as proposed herein would.be o r diem basis
with a maximum fee. Our current per diem charges are: 2
3 ,
Principal Engineer and Partner 2'54. .."
Project Engineer 175 'p ° -, . '
All other personnel 2.4 times salary
All expenses Out-of-pocket cost
The maximum fee for Phase I - The Revenue Requirements and Financing Study
of the Sewerage and Water System would be $18,500, of whic±: $11,000 is for
Sewerage and $7,500 is for the Water System revenue requirements. The
maximum fee for Phase II - The Cost of Sewerage Service and Rate Study
would be $16,500. Should this proposal meet with City approval the signing
of one copy of this letter proposal will constitute authority to proceed.
We look forward to the opportunity of serving the City in these matters.
Should there be any questions concerning this proposal please do not hesitate
to contact either the writer or Mr. J. R. Brown.
Yours very truly,
BLACK & VEATCH
i
LPatterson
WLP:mj 6`J
Carbon copy enclosed
Accepted: CITY OF WICUITA FALLS, TEXAS
CABY 3A; I. 2:...it .
Date December 1 , 1970