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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