THIS AMENDMENT (Amendment) is agreed to by and between the CITY OF LAWRENCE (CLIENT) and BLACK & VEATCH CORPORATION (CONSULTANT).
ARTICLE 1 - APPLICATION
This Amendment amends the Consulting Services Agreement, dated January 8, 2004, any amendments thereto and any work orders, work authorizations, purchase orders or documents of similar effect issued thereunder, between CLIENT and CONSULTANT (the Agreement).
ARTICLE 2 – ADDITIONAL SERVICES
As provided under Optional Task 10 of the Agreement, the CLIENT has requested the CONSULTANT to provide additional follow-up services related to the completed water and wastewater rate studies. These additional services are identified in Attachment A-2.
ARTICLE 3 – ADDITIONAL COMPENSATION
Compensation for the additional services provided by this Amendment shall be at the billing rates specified below. The maximum amount payable to the CONSULTANT for services provided by this Amendment shall not exceed ten thousand dollars ($10,000) without further CLIENT authorization.
Executive Officer $300/hour
Director (Principal-in-Charge) $250/hour
Principal Consultant $215/hour
Senior Consultant (Project Manager) $175/hour
Consultant (Project Staff) $140/hour
Senior Associates (Support Staff) $110/hour
Associates (Support Staff) $80/hour
Clerical/Administrative Support $60/hour
ARTICLE 4 - EFFECTIVE DATE
The effective date of this Amendment shall be . All other provisions of the Agreement, to the extent not inconsistent with this Amendment, remain in full force and effect.
CITY OF LAWRENCE (CLIENT) BLACK & VEATCH CORPORATION
(CONSULTANT)
By: ______________________________ By: _____________________________
Mike Wildgen William C. Cole
City Manager Vice President
Date: ____________________________ Date: ____________________________
The following scope of work includes tasks designed to meet specific requests of the City Commission to consider an additional water rate alternative. Rates for this new rate structure and those for the proposed uniform volume charges will also be determined for a five-year study period. Typical bills of representative customers served by each utility will be determined and summarized to indicate the various cost impacts of the proposed charges.
Uniform water rates by customer class and a common schedule of monthly service charges will be determined for each year of the five-year study period consisting of calendar years 2005 through 2009. The rates for 2005 and 2006 will be identical to the rates proposed in the water and wastewater rate report. Three tables will be prepared to summarize the uniform rate structure. Table 1 will show the existing rates and projected uniform rates for each year of the five year study period. Table 2 will show the monthly water bills under existing water rates for 2005 and under the uniform rate structure for each year of the study period by customer class. Table 3 will show the annual percentage increases in the selected typical bills.
A new water rate alternative will be developed that modifies the existing declining block rate structure by adding a new first block to provide lifeline assistance to the City’s lowest volume users. This block will be established for usage up to and including 2,000 gallons per month (the prior minimum bill monthly usage allowance) which is estimated to affect about 22 percent of the City’s residential customers and account for about 30 percent of billable residential water usage. The remaining blocks will be set at the existing breakpoints and a schedule of service charges identical to those developed in Task 1 will be included in the rate structure. This rate alternative assumes that the City will continue its current multifamily billing practice although it may not be advantageous to the City to do so under this new rate structure. Three tables similar to those prepared under Task 1 will be prepared to summarize the modified declining block rate structure. Table 4 will show the existing rates and projected declining block rates for each year of the five year study period. Table 5 will show monthly water bills under existing water rates for 2005 and under the modified declining block rate structure for each year of the five year study period by customer class. Table 6 will show the annual percentage increases in the selected typical bills.
A table will be created that shows the percentage differences between the typical bills of the two rate alternatives, as shown in Tables 2 and 5, for each year of the study period. It is anticipated that this table (Table 7) will demonstrate that the declining block rates are generally more favorable to the large water use customers within each customer class, while the uniform rates are more favorable to the small water use customers within each customer class.
This task will compare the existing rate structure with the two alternative rate structures for 2005 and present the results in three tables. Table 8 will summarize the existing rates and alternative rates for 2005 shown in Tables 1 and 4. Table 9 will summarize the monthly water bills under existing water rates and under each of the two alternative water rate structures for 2005 shown in Tables 2 and 5. Table 10 will compare typical bills under alternative rates with bills under existing rates for 2005 and present the results as percentage increases, as previously presented in Tables 3 and 6.
The proposed wastewater rates are intended to replace the existing system of minimum charges with a system of service charges. Table 11 will present the existing rates and the proposed wastewater rates for each year of the study period as presented in the rate report. Table 12 will show the monthly wastewater bills under existing wastewater rates and under the proposed rate structure for each customer class for each year of the study period. Table 13 will show the annual percentage increases in the selected typical bills.
A simplified table will be prepared for each utility that compares the total revenue to be collected under the proposed revenue increases for each year of the study period with the related revenue requirements which consist of operation and maintenance expense, debt service requirements, routine capital additions, operating reserve, and cash financing of construction. The total revenues and expenditures will be equal for each year and be presented similar to a balance sheet. Additionally, for each year, CONSULTANT will show the related level of capital improvement projects financed by the financial plans to demonstrate how the annual increases in debt service is used to leverage the proposed financing of needed capital improvements. These tables will demonstrate how the proposed revenue increases are being spent.
CONSULTANT will prepare a draft letter report covering the six tasks previously summarized for CLIENT review and comment. Based on review comments of the draft letter report, a final letter report will be prepared and an electronic copy in a PDF format will be delivered to the City.