HomeMy WebLinkAboutEagle Ottawa - rate increase - 2/6/2006 CITY OF WATERLOO , IOWA
CITY ATTORNEYS OFFICE
715 Mulberry St. Waterloo, IA 50703 (319) 291-4327 Fax (319)291-4571
. . JAMES E.WALSH,JR.,City Attorney • DAVID R.ZELLHOEFER,Assistant City Attorney
January 27, 2006
Mayor
TIMOTHY I. Michael L. Robinson
HURLEY Warner Norcross & Judd
900 Fifth Third Center
COUNCIL 111 Lyon Street,N.W.
MEMBERS Grand Rapids, MI 49503-2487
REGINALD A. Re: City of Waterloo—Eagle Ottawa
SCHMITT
Ward I Dear Mr. Robinson:
CAROCOLE This letter confirms terms negotiated by Eagle and the City with respect to rate
Ward 2 increases and sharing of certain capital costs. The parties have reached the following
agreement:
HAROLD
GETTY
ward 3 1. Billing arrearage. Eagle will pay the Cit $66,500 to bring Eagle's account
current as of the last billing issued by the City. Said sum will be paid on or
JOHN A. before February 24, 2006. The City will deem this as payment in full
KINCAID satisfaction of all billed amounts to date.
Ward 4
RON 2. Rates. Effective as of the next regular billing statement issued by the City,
WELnER Eagle will pay the following rates:
Ward 5
BOB Flow charge: $1.715/100 cubic feet
GREENWOOD BOD surcharge: $0.066/lb
At-LirXe TSS surcharge: $0.070/lb
ERIC
GUNDERSON 3. Future rate changes. Rate changes for flow, BOD, and TSS will be subject to
At-Large upward adjustment in future years based upon the "Sewer Rate Analysis"
developed by the parties, a copy of which is attached hereto as Exhibit"A".
Inputs for the formula will be derived from summaries of operating expenses
and flow/loading information provided by the City. The parties agree that this
information, when provided in the format shown on the summaries attached
hereto as Exhibit`B", will satisfy the demonstration required by Section 9 of
the Second Amended Treatment Agreement dated August 25, 1997. The
parties will exchange information and cooperate in good faith so that the
parties can mutually confirm any rate change(s) and allow for any such
change to become effective no later than December 1 that next follows the end
of the City's immediately preceding fiscal year.
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
4. Capital costs. Eagle will pay to the City as a contribution to the City's costs
incurred in the corrosion control project the sum of$152,000. Of this amount,
$22,000 shall be deemed satisfied from the City's budgeted improvement
fund,to which Eagle as a rate payer has contributed, and the remaining sum
shall be satisfied by delivery of payment in full on or before February 24,
2006.
Please have this letter agreement executed in duplicate by a duly authorized
representative of Eagle. For the City's part, this letter agreement must be approved by the
City Council before it can be signed by the mayor and made binding upon the City. We will
attempt to secure such approval at the earliest possible date. The parties are in agreement
that counterpart signatures are acceptable and that, when taken together, such signatures will
constitute one and the same letter agreement.
Thank you for your cooperation in helping to achieve a resolution of the above issues.
Ver ly yours,
s . als ,
JEW/cw
By their signatures below, the undersigned represent that they have been duly authorized to
execute this letter agreement and that the foregoing terms are binding.
Eagle Ottawa, LLC City of Waterloo, Iowa
By:- By:
Title: /-0 Timothy J. y, May
Attest:
Nancy Rckerq
ity Clerk
2
EXHIBIT
m
Eagle Ottawa Waterloo
Sewer Rate Analysis
Form Revision 6/14/2004
Current Year:
Date: Completed By:
Previous Year:
-Fields shaded in green require data entry,all other fields are calculated
Note:"Current Year"means City's fiscal year that just ended,"Previous Year'is Citys fiscal year prior to the current year. FY Values
ends July 1,City's rate increase demonstration final by Sept.1,rate increases take affect on Dec.1. Example
2002=current,
Calculation of Flow Charge Increase From Increases in Flow Operating Costs 1997=previous
City of Waterloo Flow for Previous Year(MG) Q?MO 0 4,234
City of Waterloo Flow for Previous Year(100 ft) QPtOOCF=QPMGx 1,000,000!748 0 5,660,428
City of Waterloo Operating Expenses for Previous Year($) EP $0 $3,075,705
Flow Operating Costs for Previous Year($)(calculated by multiplying City of
Waterloo Operating Expenses for Previous Year by 35%) EPo=EP x 0.35 $0 $1,076,497
Flow Operating Costs per 100 cubic feet flow for Previous Year($1100 fts) EPou=EPo/QPmoCF #DIV/01 0.1902
City of Waterloo Flow for Current Year(MG) OcMo 0 5,187
City of Waterloo Flow for Current Year(100 It") QC100CF=QCMGx 1,000,0001748 0 6,934,024
City of Waterloo Operating Expenses for Current Year($) Ec $0 $4,438,239
Flow Operating Costs for Current Year($)(calculated by multiplying City of
Waterloo Operating Expenses for Current Year by 35%) ECQ=E,x 0.35 $0 $1,553,384
Flow Operating Costs per 100 cubic feet flow for Current Year($/100 if) Econ=Eco/QC1000F #DIV/01 $0.2240
Net Increase in Flow Operating Costs per 100 cubic feet from Previous Year
to Current Year($/100 fe) lO=Ecou-EPOu #DIV/0! $0.0338
Proposed Increase to Eagle Ottawa Waterloo's Flow-based Sewer Rate If to>$0.042, IOA=$0.042; If to<or
Due to Increases in Flow Operating Costs($/100 tt) =to$0.042, IoA=to #DN/01 $0.034
Calculation of BOD Surcharge Rate Increase From Increases in BOD Operating Costs
City of Waterloo BOD for Previous Year(lbs) BOD, 0 8,377,480
City of Waterloo Operating Expenses for Previous Year($) EP $0 $3,075,705
BOD Operating Costs for Previous Year($)(calculated by multiplying City of
Waterloo Operating Expenses for Previous Year by 35%) EPBOD=EP x 0.35 $0 $1,076,497
BOD Operating Costs per pound of BOD for Previous Year($/lb) Epeonu=EPBOD/BODP #DIV/o! $0.1285
City of Waterloo BOD for Current Year(lbs) BOD, 0 11,301,495
City of Waterloo Operating Expenses for Current Year($) E, $0 $4,438,239
BOD Operating Costs for Current Year($)(calculated by multiplying City of
Waterloo Operating Expenses for Current Year by 35%) ECBOD=Ec x 0.35 $0 $1,553,384
BOD Operating Costs per pound of BOD for Current Year($/Ib) Ecsoou=EPBOD/BODc #DIV/0! $0.1374
Net Increase in BOD Operating Costs per pound BOD from Previous Year to
Current Year($/Ib) IBOD=ECBODU-EPBODU #DIV/01. $0.0090
Proposed Increase to Eagle Ottawa Waterloo's BOD Surcharge Rate If IBOD>$0.005, IBODA=$0.005; If]BOD #DN/01 $0.005
Due to Increases in BOD Operating Costs($/1b) <or=to$0.0059 IBODA=IMI)
Calculation of TSS Surcharge Rate Increase From Increases in TSS Operating Costs
City of Waterloo TSS for Previous Year(Ibs) TSS, 0 8,193,8x5
City of Waterloo Operating Expenses for Previous Year($) E, $0 $3,075,705
TSS Operating Costs for Previous Year($)(calculated by multiplying City of
Waterloo Operating Expenses for Previous Year by 30%) EPTss=EP x 0.30 $0 $922,712
TSS Operating Costs per pound of TSS for Previous Year($/Ib) EPTssu=EPrss/TSSP #DIV/01 $0.1126
City of Waterloo TSS for Current Year(lbs) TSSc 0 12,165,815
City of Waterloo Operating Expenses for Current Year($) Ec $0 $4,438,239
TSS Operating Costs for Current Year($)(calculated by multiplying City of Ecrss=Ec x 0.30 $0 $1,331,472
Waterloo Operating Expenses for Current Year by 30%)
TSS Operating Costs per pound of TSS for Current Year($/Ib) Ecrssu=Eprss/TSSc NDIV/0! $0.1094
Net Increase in TSS Operating Costs per pound TSS from Previous Year to IBOD=ECTSSU-EPTSSU #DIV/0! -$0.0032
Current Year($/Ib)
Proposed Increase to Eagle Ottawa Waterloo's TSS Surcharge Rate If ITSS>$0.005, ITSSA=$0.005; If ITS$ #DIV/0! $0.000
Due to Increases in TSS Operating Costs(ITssAf($1Ib) <or=to$0.005, ITSSA=ITSS
List of Variables Used in Calculations
QPMG City's previous year flow in millions of gallons
QCMG City's current year flow in millions of gallons
QP1XGF City's previous year flow in units of"100 cubic feet"
QC1000P City's current year flow in units of°100 cubic feet"
EP Citys operating expenses for previous year (see note below)
Ec City's operating expenses for current year (see note below)
Epo City's operating expenses for previous year allocated to flow
Eco City's operating expenses for current year allocated to flow
Epou Citys operating expenses for previous year allocated to flow per 100 cubic feet
Ecou City's operating expenses for current year allocated to flow per 100 cubic feet
EpBOD City's operating expenses for previous year allocated to BOD
Ecem City's operating expenses for current year allocated to BOD
EPBODU City's operating expenses for previous year allocated to BOD per pound of BOD
Ecsoou City's operating expenses for current year allocated to BOD per pound of BOD
Ep,, City's operating expenses for previous year allocated to TSS
EcTss City's operating expenses for current year allocated to TSS
EPTBsu City's operating expenses for previous year allocated to TSS per pound of TSS
Ecrssu City's operating expenses for current year allocated to TSS per pound of TSS
BODp City's pounds of BOD for previous year
BODO City's pounds of BOD for current year
TSSP City's pounds of TSS for previous year
TSSc City's pounds of TSS for current year
IQ Net increase in flow charge due to increased flow operating costs
IDA Allowable increase in flow charge due to increased flow operating costs
IBOD Net increase in BOD surcharge due to increased BOD operating costs
IBODA Allowable increase in BOD surcharge due to increased BOD operating costs
ITSS Net increase in TSS surcharge due to increased TSS operating costs
ITSM Allowable increase in TSS surcharge due to increased TSS operating costs
IOBDDA Allowable increase in flow charge due to increased BOD operating costs
IOTSsA Allowable increase in flow charge due to increased TSS operating costs
IOTOTALA Allowable increase in flow charge due to increased flow,BOD and TSS operating costs
Note: City's operating expenses-Operation and maintenance expenses attributable solely to the treatment of wastewater,
and not to the expansion or enhancement of other capacity,capabilities,or facilities(or operation or maintenance of
the foregoing),debt service or other capital costs or expenses. May include salaries and benefits of wastewater
treatment plant personnel,supplies,utility usage and resource consumption of the wastewater treatment plant,
disposal and management costs for biosolids generated during wastewater treatment,maintenance costs of the
wastewater treatment plant. May not include costs that,when allocated to the Company's proportion of flow,BOD,
and TSS loadings,do not represent operation and maintenance expenses attributable solely to the treatment of the
Company's wastewater.
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federal law(such as the Buy America provisions).
10. As required by 23 CFR 635.112(e), the Recipient shall not bid in competition or enter
into subcontracts with private contractors. However, this restriction does not preclude
the Recipient from performing highway construction work on a force account basis,
subject to the requirements set forth in Index No. 3 of the Project Development
Information Packet.
11. As required by 23 CFR 635.110, The Recipient shall not implement procedures or
requirements for bonding, insurance, prequalification, qualification, or licensing
which restricts competition or prevents submission or consideration of a bid by a
responsible contractor.
12. As required by 23 CFR 635.105, the Recipient agrees that it has adequate staff and is
suitably equipped to satisfactorily complete the project work. A full-time employee of
the Recipient shall have responsible charge of the project. Responsible charge means
that the employee is: aware of the day-to-day operations of the project; involved with
decisions regarding change orders; aware of the qualifications, assignments, and
performance of the consultant staff, and visiting the project site on a frequency that is
appropriate for the size and complexity of the project.
In witness whereof each of the parties hereto has executed this Supplemental Agreement
as of the date shown opposite its signature below.
RECIPIENT:
Signature: Date: Ftbtu-a�y , 20 O�(.
Name: ell ^n, H Lt f 12 Title: KVI a IP Y
IOWA DEPARTMENT OF TRANSPORTATION:
Signature: Date: 20
Name: Office: