06-G Water & Wastewater StudyDRAFT
J:\Attorney\ALICE\RESWORK\CiJRRENT\Prof Serv Contr Reed, Stowe & Yanke Res.wpd
December 5, 2001
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AUTHORIZING THE CITY MANAGER AND THE CITY
ATTORNEY TO NEGOTIATE, THE CITY MANAGER TO EXECUTE, AND
THE CITY CLERK TO ATTEST TO A PROFESSIONAL SERVICES
CONTRACT BY AND BETWEEN THE CITY OF PARIS AND REED,
STOWE & YANKE, RATE CONSULTANTS, TO PERFORM A WATER
AND WASTEWATER RATE STUDY FOR THE CITY OF PARIS; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Paris, as a retail water supplier and processor of wastewater,
periodically must conduct rate studies to determine appropriate charges for the sale of water and the
treatment of wastewater, consistent with existing water supply contracts and the obligations of the
City with regard to its revenue bonds and the security for said bonds; and,
WHEREAS, the City's consultant for rate-related matters is Reed, Stowe & Yanke,
Professional Consultants, who have advised the City on rate-related matters in the past and continue
to advise the City on such matters; and,
WHEREAS, the City Manager has requested a proposal from Reed, Stowe & Yanke to
perform a follow-up water rate review and study to assist the City in determining the appropriate
charges for its water and wastewater services, as such charges are assessed pursuant to existing and
future water supply contracts and otherwise; and,
WHEREAS, the City Manager has requested the City Council to approve the City Manager
and the City Attorney to negotiate and enter into a contract with Reed, Stowe & Yanke to perform
the aforesaid rate study; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the City Manager and the City Attorney are hereby authorized to negotiate,
the City Manager to execute, and the City Clerk to attest to a Professional Services Contract by and
between the City of Paris and Reed, Stowe & Yanke, Professional Consultants, for the performance
of a water and wastewater rate study for the City of Paris.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this lOth day of December, 2001.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
DEC-04-2091 15:44 REED, STDWE 8 YRNKE, LLC
512 450 9515 P,02
~ REED, STDWE & YANKE
a Limited LiaMllryfompany
December 4, 2001
Mr. Mike Malone
Ciry Manager
Ciry of Paris
P.O. Box 9037
Paris, Texas 75461-9037
Re: Water aud Wxstewater ConsulHog Services
Dear Mr. Malone:
Reed, Stowe & Yankc, LLC (RS&Y) is pleased to have tlvs oppomuiiry to provide the Ciry of
Paris water and wastewater consulting services. Based upon ow conversations with you and the
Ciry Attorney, Mr. Larry Schenk, it is our understending tha[ the Ciry desires assistance in the
perfonnance af a retail water and wastewater rate study in compli8nce with cxisting conhacts
with Campbell's Soup and 7enaska III.
This engagement letter speeifically iden6fies the scope of scrvices to be provided and the
associated timing, fees, and staffing.
Scape oi Services
RS&Y will perform the seme level of services to conduct this study as were provided in the
performance of the 1999 study. It is our understanding that an update of the 1999 sNdy is
rcquired at this time due to the contractuel rcquirements with Campbell's Soup Company and
Teneske III, which provide for rate adjushnrnts every tltrtc years. The last rate adjustrnent for
these rntities was in 1998.
During the performance of this study, specific attention will be given the cucrent stetus of lost and
unaccounted for water on the system.
TiminQ
A delivcrable of the 1999 study wes a'rate model' supporting tha 1999 study. It is our opinion
ttiat the presente of this model will signifecantly reduce the level of effort necessary to perform
this study. We anticipate issuance of the final report within sixry days from the iniHation of the
study.
Fees
While RS&Y is confident that the existittg rete model will signi8cently reduce the level of effort
required, it has bGtn two years since RS&Y has worked with the City's Financiel end operational
5806 Mesa Drive, Suite 310 • AuSt1n,TX 78731 • P(512) 450-0991 • F(512) 450-0515
DEC-64-2991 15:44 REED, STDWE 8 YRNKE- LLC 512 450 0515 P,03
W. Mike Malone
December 4, 2001
Page 2 af 2
data. Therefore, there may have been changes which may requirc additional analysis and/or
modifications to the model. In addition, as stated above, additional effoR will be expended to
analyze lost and unaccounted for water.
RS&Y proposes a not-to-exceed pnce of $25,000 associated with the wattt and wasteweter cost
of service and rate design etudy. However, as the City knows, RS&Y bills only for actual hours
worked plus out of pocket expenses. Therefore, if the study can be completed at the lower level
of efSort anlicipated, the City would be billed accordingly.
Proiect StatfinE
Mr. ]ack E. Stowe, Jr, will serve as the Project Director having overall responsibility for the
successful compierion of all phases of tlvs project. Mr. Stowe will be assisted by Mr. Darrell
Cline and Ms. Kelly Visness.
RS&Y believes the City to be familiaz with the qualifications of Messrs. Stowe and Cline and
therefore has not etteched their professional resumes but wilt provide them if requested by the
Ciry. Attached to this proposal letter is the professional resume of Ms. Kelly Visness for your
mformation.
Again, RS&Y thanks you for this opportunity to assist the City of Paris in insuring the financial
stability of the City's utility operations. If you should have any questions regerding this letter,
please contact Mr, Jack E. Stowe at (512) 450-0991.
If this engagement letter is in agreement with your understanding of the scope of services to be
provided and the terms and condiHons aze acceptable, please execute one oopy and retum to our
Austin office.
Very truly yours,
JA,.,,e tA...Je., Lz C
Reed, Stowe & Yanke, LLC
Accepted by:
Tiue:
Date:
TOTqL P.03