89-R-63RESOLUTION NO. 89-R-63
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EDGEWATER, FLORIDA, AUTHORIZING THE
APPROPRIATE OFFICIALS OF THE CITY OF EDGE -
WATER, FLORIDA, TO EXECUTE AMENDMENT NO. 1989-
13, "ENGINEERING SERVICES ASSOCIATED WITH
CONDUCTING A WATER AND WASTEWATER RATE AND
CHARGE STUDY FOR THE CITY OF EDGEWATER" WITH
DYER, RIDDLE, MILLS & PRECOURT, INC.; REPEAL-
ING ALL RESOLUTIONS IN CONFLICT HEREWITH AND
PROVIDING FOR AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EDGEWATER, FLORIDA:
SECTION 1: The City Council of the City of Edgewater,
Florida, hereby authorizes the appropriate officials of the City
of Edgewater, Florida to execute Amendment No. 1989-13,
"Engineering Services Associated with Conducting a Water and
Wastewater Rate and Charge Study for the City of Edgewater" with
Dyer, Riddle, Mills & Precourt, Inc.
SECTION 2: A copy of said Amendment is attached to this
Resolution and by reference incorporated herein as if fully set
forth and marked Exhibit "A".
SECTION 3: That all resolutions or parts of resolutions in
conflict herewith be and the same are hereby repealed.
SECTION 4: That this Resolution shall take effect immedi-
ately upon its adoption by the City Council of the City of Edge-
water, Florida, at a Regular meeting of said Council held on
the 30 day of August ,198 9 , and approved as provided by
law.
This Resolution was introduced and sponsored by councilman
Fish
and was
read and
passed by a
vote of
the City
Council of
the City of
Edgewater,
Florida, at a
Regular
meeting of
said Council
held on the 30 day of
August
,1989
and authenticated as provided by law.
ROLL CALL VOTE ON RESOLUTION NO. 89-R-63 AS FOLLOWS:
Authenticated this 30 day
of 19�8
MAYOR
--ram, O.
NEY
i�
C;.MAN - ZONE THREE
%r I
:OUNCILMAN - ZONE FOUR
-2- Res. No. 89-R-63
AMENDMENT NO. 1989-13
ENGINEERING SERVICES ASSOCIATED WITH
CONDUCTING A WATER AND WASTEWATER
RATE AND CHARGE STUDY
FOR THE CITY OF EDGEWATER
This AMENDMENT made and entered into this day of amends
the consulting engineering AGREEMENT for professional services between the CITY
COUNCIL OF THE CITY OF EDGEWATER, FLORIDA (hereinafter referred to as
"CITY"), and DYER, RIDDLE, MILLS & PRECOURT, INC. (hereinafter referred
to as "CONSULTING ENGINEER") to perform engineering services relative to
conducting a Water and Wastewater Rate and Charge Study for the CITY;
WHEREAS, this AMENDMENT shall incorporate all of the conditions and
requirements of the original CONTRACT between the CONSULTING ENGINEER
and the CITY, dated October 19, 1987;
Provisions delineated in the October 19, 1987 AGREEMENT shall remain in
full force without modification. In case of conflict this AMENDMENT shall prevail.
This AMENDMENT provides for certain professional consulting engineering services
relative to the CITY's water and wastewater utility. The services provided in this
AMENDMENT include, but are not limited to, providing engineering services to
the CITY related to the analysis and design of water and wastewater rates and
charges.
As directed by the designated CITY representative to the CONSULTING
ENGINEER, confirmed by the CITY's work order, the scope of services and
professional engineering compensation as included herein are made part of this
AMENDMENT.
DRMP 887-400.23
IN WITNESS WHEREOF, the parties hereto have accepted, made and executed
this AMENDMENT No. 1989-13 upon the terms and conditions stated in the
AGREEMENT dated October 19, 1987.
Dyer, Riddle, Mills Br Precourt, Inc.
B l•
vice r stdent
CITY OF EDGEWATER, FLORIDA
is
B
mess ayor
EXNIBIT A
CITY OF EDGEWATER
DRMP WORK ORDER DESCRIPTION
Project Title: 1989 Water and Wastewater Rate and Charge Study
Project Objective: The City of Edgewater currently is in the process of implementing
a significant capital improvement program, the objective of which is, among others,
to provide water and sewer service to the Florida Shores subdivision, to allow for
the expansion of water supply and wastewater treatment facilities, and to provide
for the construction of major drainage and stormwater facilities. As a result of
the implementation of the capital improvement program, the City issued a short
term debt instrument (Bond Anticipation Notes) to initially fund a portion of the
construction program. It is anticipated that the short term debt will be paid from
the proceeds of a longer term utility revenue bond issue. As a result of issuing the
short term indebtedness and in order to provide a surety to the payment of the debt,
a comprehensive utility rate and charge study needs to be performed. The objective
of the study Is to determine rates consistent with future customer and expenditure
needs, to satisfy the future debt service requirements, and to adequately reflect
the costs of the anticipated capital Improvement program. Additionally, the results
of the rate study will provide a basis for data which may be reflected in a Consulting
Engineer's Report anticipated to be Included in an Official Statement supporting
a long term revenue bond issue and will be a reference document associated with
the marketing of such Bonds.
Project Scope: The prosecution of the rate study is anticipated to be performed
in two general phases under this separate amendment as follows:
Phase I - Water and Wastewater Rate Study
Phase E - Water and Wastewater Impact Fee Study
Phase I - Water and Wastewater Rate Study
The preparation of rates for water and wastewater service will include the following
tasks:
1. Preparation of water and wastewater customer and sales forecast to determine
future revenue estimates, costs, and growth of the system.
2. Estimate system revenue requirements necessary to fund system operations
(i.e., treatment, transmission and distribution, collection, etc.), customer billing,
administrative costs, capital improvements, system indebtedness and any other
requirements as may be mandated by bond resolution, ordinance and/or loan
agreements. The system revenue requirements will include changes In operation
consistent with the implementation of the capital improvement program.
3. Design of the required rates necessary to meet the revenue requirements
discussed above. The rate structure design will provide user fees for each
respective utility system based on the rate structure of the City's existing
rates. It Is anticipated that the rate analysis will include a five fiscal year
period ending September 30, 1990 through 1994, or a period consistent with
the requirement of the anticipated long term debt Instrument.
4. Rate comparisons with utilities of similar size and complexity will be prepared
to provide the City an indication of the competitiveness of the proposed rates
with other Florida utilities.
5. Preparation of a debt service coverage calculation in order to meet rate
covenant tests as required by the Resolution authorizing the City's outstanding
indebtedness at the time of the study or anticipated to be in effect in the
next fiscal year.
6. Preparation of a final report detailing the anlytical methods, results obtained,
and conclusions and recommendations regarding rate modifications.
Phase II - Water and Wastewater Impact Fees
The preparation of impact fees for water and wastewater capacity will include the
following tasks:
1. Determination of the capital costs associated with system expansion in order
to determine the funding requirements of the fee. This analysis may include
a review of current construction or capital improvement plans or budget,
analyses of existing plant in service, capacity requirement of the system
facilities, and other analyses as deemed appropriate for the task.
2. Determination of the Equivalent Residential Unit (ERU) capacity requirements,
and segregation of customers by meter size and/or functional capacity
requirements.
3. Impact fee design as determined from the estimated incremental cost per
ERU. The impact fee design shall provide an estimate of the funds anticipated
based on the City's projected growth rate.
4. Comparison of the City's proposed impact fees to other utilities of similar
size and complexity to provide the City an indication of the competitiveness
of the fees with other Florida utilities.
5. Preparation of a final report detailing the analytical methods, results obtained
and conclusions and recommendations regarding impact fee modifications.
The final report will be included with the rate analysis report as a single bound
report.
Project Duration: It is anticipated that the preparation of the water and wastewater
rate study should be completed within twelve to sixteen weeks after notice to proceed
is given.
Project Compensation: This project will be invoiced on a monthly basis in accordance
with the conditions and requirements of the original contract between DRMP and
the CITY, dated October 19, 1987. The total maximum billing amount for this project
is $15.000.