R-88-1197 - 11/22/1988WHEREAS, the City Council has a need for a water rate study for
water provided to wholesale customers, and
WHEREAS, Willis Graves and Associates has submitted a proposal
to provide said water rate study, Now Therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City a contract with Willis Graves and Associates for a
water rate study, a copy of said contract being attached hereto and
incorporated herein for all purposes. �I n ors
RESOLVED this f day of r/____1' , 19 0 d .
ATTEST:
NE LAND, City Secretary
C34RESWILLIS
RESOLUTION NO.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
WILLIS, GRAVES & ASSOCIATES, INC.
Public Utility Consultants
9501 Capital of Texas Highway North Austin, Texas 78759
Suite 301 [5121 346 -8240
October 28, 1988
Mr. Bob Bennett, City Manager
City of Round Rock
214 East Main Street
Round Rock, TX 78664
Re: Proposal to Perform Review of Wholesale Water and Sewer Rates
for the City of Round Rock
Dear Mr. Bennett:
Pursuant to my various meeting with the City's Staff, I am pleased to submit
the following proposal in the form of a letter agreement to perform an analysis
of the wholesale water and sewer rates of the City of Round Rock.
We are prepared to start working on the studies as soon as we are authorized
to proceed. The following terms and conditions are proposed:
SCOPE OF SERVICES
Work under this agreement shall include the following tasks:
1 Review and analyze the various wholesale water and sewer contracts that
exist between the City and the various other contracting parties. Included
in this review will be an analysis of the various contractual water and
sewer rate structure differentials and the factors that are unique to each
contract that would justify the differentials.
2. Review and brief the City on the status and implications of the current
rate case between the City of Austin and several of its wholesale customers
that is currently being heard before the Texas Water Commission.
3. Quantify the historical and projected growth in demand for service from
each wholesale customer with respect to costs placed on the Round Rock
system in both the present year and with respect to the ultimate demand.
Mr. Bob Bennett, City Manager Page 2
October 28, 1988
4. Update and modify as necessary the existing utility rate model to include
projections for each of the various wholesale customers under the current
rate structure reflected in each of the existing contracts.
5. Update and modify as necessary the existing utility rate model to reflect
the currently proposed (FY 1989) Utility Fund Budget, revised projections
of growth within the City, revised capital expenditures projections, and
current projections of revenues from Capital Recovery Fees.
6. Identify the various components of the water and sewer system which serve
the various customer classes with particular emphasis on the assets that
are utilized to serve the various wholesale customers.
7 Examine various rate structure alternatives which would identify and
recover the cost of providing service to the various wholesale customers,
consistent with TWC guidelines, and provide appropriate compensation to
the City for all of the identifiable costs of furnishing this service.
This analysis will include adequate compensation to the City for assuming
the financial risks related to supplying wholesale utility service.
8. Prepare a report of the results of the analysis with recommendations for
1) water and sewer rates for wholesale customers for FY 1989, 2) a cost
of service and rate design formula basis for determination of future rates,
and 3) projections for the following 10 years for use in the City's long
range planning model.
COMPENSATION
Services performed under this agreement shall be billed in accordance with
the following schedule of rates and fees:
Professional services
Clerical /word processing
Out -of- pocket expenses
BILLING AND PAYMENT
$ 90.00 per man -hour
$ 15.00 per man -hour
Actual Cost
Billings shall be rendered monthly for services performed and expenses
incurred during the month immediately preceding, and shall be payable upon
receipt.
TOTAL BILLING
Billings will be based on the actual amount of time required to complete
the work as described above. It is estimated that the tasks can be completed
in 180 hours or less. However, since the level of effort is not well defined
at this stage, we are not proposing a maximum billing.
Mr. Bob Bennett, City Manager Page 3
October 28, 1988
Work under this agreement is anticipated to be completed within 10 weeks
of authorization to proceed, but may be extended at the option of the City.
If the above terms and conditions are acceptable to you, please execute in
the space provided and return one executed copy to Willis, Graves & Associates,
Inc. at 9501 Capital of Texas Highway North, Suite 301, Austin, Texas 78759.
Very truly yours,
Searcy F. Willis, Jr.
President
TIME FOR COMPLETION
Accepted and Agreed to this
_day of , 1988
WILLIS, GRAVES & ASSOCIATES, INC. By
of Round Rock, T xas
Name
By
LL .\ Nri t �=
B
tle
ATTEST:
y Secretary
DATE:
SUBJECT:
ITEM:
November 21, 1988
Council Agenda, November 22, 1988
8B. Consider a resolution authorizing the Mayor to
enter into a contract with Willis Graves and
Associates to revise the water rate study (whole-
sale water customers).
STAFF RESOURCE PERSON: Sam Huey
STAFF RECOMMENDATION: Retain Willis Graves and Associates to update
and revise the water rate study.with particular emphasis to
determining out of city rates for future out of city customers.
ECONOMIC IMPACT: Not to exceed $16,000.