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HomeMy WebLinkAboutCity of Tamarac Resolution R-87-162w Introduced b//L% Y� � Temp. Rests. #4566 1 2 3 4 7 8 9 10 11 12 13 14 15 16 19 20 21 22 23 24 25 `6 27 28 31 32 33 34 35 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-87- &-;Z A RESOLUTION APPROVING AN AMENDMENT TO THE LARGE USER WASTEWATER AGREEMENT BETWEEN THE CITY OF FORT LAUDERDALE AND THE CITY OF TAMARAC; PERTAINING TO CHARGES; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That the City Council of the City of Tamarac hereby approves an Amendment to the Large User Wastewater Agreement between the City of Fort Lauderdale and the City of Tamarac pertaining to charges (attached hereto and made a part hereof as Exhibit "A"). SECTION 2: That the appropriate staff is hereby authorized to execute said amendment. SSECTION 3: This Resolution shall, become effective immediately upon its passage. PASSED, ADOPTED AND APPROVED this /3 day of 1987. ATTEST: LAC/ CAROL E. BARBUTO CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. "BRY T TE CIT 'T'TO 2085041387/t MAYOR: HART DIST. 1: C/M ROHR DIST. 2: C/M STELZER DIST. 3: C/M HOFFMAN DIST. 4: V/M STEIN~ << 65o.8i' AMENDMENT TO LARGE USER WASTEWATER AGREEMENT BETWEEN CITY OF FORT LAUDERDALE AND CITY OF TAMARAC THIS AMENDMENT TO LARGE USER WASTEWATER AGREEMENT, made and entered into this(' day of 1987, between: CITY OF FORT LAUDERDALE, a municipality of the State of Florida, hereinafter referred to as "CITY", which term shall include its successor and assigns, and CITY OF TAMARAC, a municipality of the State of Florida, hereinafter referred to as "CUSTOMER", which term shall include its successors and assigns. CITY and CUSTOMER entered into a Large User Wastewater Agreement on / Said Agreement provides that interest earnings of the Central Wastewater Region shall be included in the account of the repair and replacement fund. However, that fund is projected to be at its target amount substantially prior to its twenty year life. CITY and CUSTOMER agree that the fund will not be impaired by excluding interest earnings and when applied as a credit against the costs of the Region, the actual rate for wastewater treatment services charged by the Region to all Large Users will decrease. In consideration of the mutual terms and conditions, promises and covenants hereinafter set forth, CITY and CUSTOMER agree as follows: 1. That the Large User Wastewater Agreement between the City of Fort Lauderdale and the City of Tamarac is hereby amended as shown on Exhibit "B", attached to and made a part of this Agreement. 2. That the proper officials of CITY were authorized to execute this Amendment by Resolution No. 87-95, passed at the meeting of the City Commission of CITY on March 31, 1987. 3. That the proper officials of CUSTOMER were authorized to execute this Amendment by Resolution X-g 7-/6.2 , passed at the meeting of the-tic�u.�-� on / / 9 4. That this Amendment shall not take effect until and unless a document in substantially the same form amending the Large User Wastewater Agreement in substantially the same manner is authorized by resolution of the governing bodies and executed by the proper officials of all the other Large User customers in the Central Wastewater Region. S. That in all other respects the Large User Wastewater Agreement shall remain in full force and effect. 0 • IN WITNESS OF THE FOREGOING, the parties have set their hands and seals the day and year first written above. WITNESSES: (CORPORATE SEAL) CITY CITY OF FORT LAUDERDALE By Mayor By City Manager ATTEST: City Clerk Approved as to form: City Xttorney CUSTOMER CITX OF AMARAC r r By a PERN��� r ATTEST: (CORPORATE SEAL) d i ry el-e-Aw L'ltRQc. 3144E ` 2 V ARTICLE 5 PROVISIONS PERTAINING TO CHARGES 5.1 B.ASIS OF CHARGES Both parties agree that CITY shall provide wastewater trans- mission, treatment, and disposal service to CUSTOMER at fees, rates and charges constituting the full cost of such service, which shall include Operating and Maintenance Expense, Debt Requirements, and Capital Replacement Fund (as required by PL 92-500) reduced by total interest earnin s of the Central Wastewater Re ion. CITY shall set the same fees, rates and charges for all Large Users (including itself) as defined in Article 2.6 that are within the same Region. Such fees, rates and charges shall be adopted or amended by the CITY, and it shall consider recommendations of the individual CUSTOMERS and recommendations of the Regional Advisory Board. The CITY shall hold public hearings on amendments to the rates and charges in the manner provided by law and after at least thirty (30) days written notice has been provided to the CUSTOMER of such public hearing. The CUSTOMER shall pay a monthly charge to CITY for wastewater transmission treatment and disposal services provided by the , CITY. Such charges shall include the following: 5.1.4 A credit for interest earnings of the Central Wastewater Region, shall be computed as a credit per 1000 gallons passingthroughthe meter or meters ser%in CUSTOMER. The rate for such per 1000 gallon credit shall be computed by dividing the budgeted annual total re ional interest earnin s, in thousands of dollars, for CITY'S ensuing fiscal year, ending September 30, by the number of thousands of Sallons of EXHIBIT B r� It wastewater which is estimated to be treated and disposed of through CITY'S Regional System for that year. 5:1:4 5.1.5 An annual adjustment will be computed after the close of the fiscal year and the issuance of the CITY'S Annual Financial Report which will be based upon the actual rate for the year. The actual rate will be computed by dividing the actual operating and main- tenance costs, bond debt service covenant requirements and replacement costs less interest earnings of the regional•system by the actual number of thousands of gallons of wastewater treated and disposed of through the system for that fiscal year. CUSTOMER'S actual charge for the fiscal year will be computed by multiplying the actual rate times the num- ber of thousands of gallons of wastewater delivered by CUSTOMER and increasing the amount by any additional charges as described in sections 3.6, 5.2 and 5.4. Should CUSTOMER'S actual charge exceed the amounts previously paid, a special bill will be presented to CUSTOMER showing the additional charge due. Should CUSTOMER'S actual charge be less than the amounts previously paid, the difference will be refunded to CUSTOMER. 5.1.6 The illustrations in Appendix A are designed to • demonstrate and clarify the items discussed in this section and should be reviewed concurrently. 1031 r - 2 - Appendix A D 7,16 I; it 1 USER CHARGE CALCULATION Public Law 92-500 (Section 204(b) (1) (A)) requires that a system of user charges be adopted to assure that each recipient of wastewater treatment ser- vices will pay its proportionate share of the costs of operation and maint-n- ance (including replacement) of any waste treatment services provided by the, Regional System. Accordingly, user rates will he developed annually as part of a budget process using the following formula: R= A+ B+ C- D N Where R = the rate per 1,000 gallons passing through the meter or meters of the large user, A = operation and maintenance costs as explained in Section A below, B = debt service and bond covenant requirements as described in Section R below, C = replacement costs as described in Section C below, and D = interest earnings as described in Section D below, and N = the total number of thousands of gallons of wastewater that it is esti- mated will be treated and disposed of through the Regional System for that year. Following the close of each fiscal year and the issuance of the annual finan- cial statements for that year, the actual user rates and charges will be calculated as described in part II of this Appendix and an adjustment made. 0 A. Operation and "Maintenance Costs The operation and maintenance portion of the user rate will be based upon the annual operating budget for the Central Regional System and will include, but not be limited to, the following categories of expenses: Personal Services Salaries XXX Employment Taxes XXX Employee Benefits XXX Current Expenses utilities XXX Fuel, Oil & Lubricants XXX Consumable Tools XXX General Operating Supplies. XXX Office Supplies XXX Chemicals XXX Professional Services XXX Insurance XXX Vehicle Operations and Maintenance XXX Equipment Repairs XXX Printing & Binding XXX Conferences, Schools f, Travel XXX Uniforms XXX * Administrative Service Charges XXX XXXX u * This item represents charges for the services of various City departments which will he charged to the Regional. System in accordance with the City's administrative indirect cost allocation plan developed under the guide- lines of "Federal Management Circular 74-4" as reviewed and approved by the Environmental Protection Agency. Ope-ndix A -Jage Two 3. DEBT SERVICE AND BOND COVENANT REQUIREMENTS 'his portion of the rate will be based upon the bond principal and interest )ayments required in the coming year and the amounts necessary for satisfac- .ion of the applicable bond covenant requirements as listed below: Principal and interest payments payable during the fiscal ,ear on those portions of the Water and Sewer Revenue Bond ssues of 1973 and 1978 that were used to purchase or construct 'ix0assets of the Regional System. (See Tables A-3 and A-4.) XXX Twenty-five percent of the amount in 1. above in satisfaction +f bond covenant requirements. XXX tote: Water and Sewer Revenue bond covenants require that •evenues be equal. to or greater than the sum of: 125% of bond principal and interest payable during the year, 100% of operation and maintenance costs for the year and 100% of payments to reserve accounts required by other bond covenants. Principal and interest payments payable during the iscal year on that portion of the General Obligation Sewer and Issue of 1971 that was used to purchase or construct ixed assets of the Regional System. (See Table A-2.) XXX Payment to the Operating Reserve Account of any additional mount necessary to establish a balance equal to two months' stimated operating expenses. XXX Payments to the Debt Service Reserve Account equal to he eater of 20% of the amount in 1. above or an amount of icient to establish a balance in the Debt Service eserve Account equal to the largest amount which will be equired in any one year for the payment of maturing rincipal of and interest on Water and Sewer Revenue onds. Due to the difficulty in allocating this reserved equirement, the City will account for and be responsible for aintaining this reserve at the appropriate balance. -0- Payments to the Replacement and Improvement Reserve ccount, if such payments should become necessary. Bond ovenants require that a minimum balance of $500,000 be aintained in this account and that at the direction of he consulting engineer additional funds will be appropri- ted to cover planned project costs. At the date of signing f this agreement, the balance in the Replacement and Improve- ent Reserve Account is $500,000 and no plans exist to increase he required balance. In addition, requirements for payments o the Replacement Account, as described in Section C below, re more restrictive. For these reasons, no payments to the eplacement and Improvement Reserve Account are contemplated t the date of signing of this agreement. -0- Total XXX .10 Replacement Costs his portion of the rate, as required by P.L. 92-500, is to provide for the eplacement or addition of equipment, accessories or appurtenances that will e needed to maintain the performance and capacity of the Regional System urine its first 20 years of operation. A schedule will be prepared by the onsulting engineer projecting such expenditures for the 20 year period. The chedule will be revised and updated each year to show the expected replace- ent costs for the remainder of the 20 years. Appendix A Page Three The replacement cost portion of all user charges collected will be deposited in the Replacement Account and replacement expenditures will he made directly from the account. If any unused balance remains in the Replacement Account at the end of the 20 year period it will be transferred to the Replacement and Improvement Reserve Account, as described in Section B.6. above. This portion of the rate will be calculated annually using the following formula: C = F - R Y Where C = the amount of replacement costs to be collected that year, E = the expected replacement costs for the remainder of the 20-year period as shown by the consulting engineer's updated schedule, R = the balance in the Replacement Account, anal Y = the number of years remaining in the 20-year period. D. Interest Earnings This portion of the rate is to provide credit for the interest earnings of the Central Regional Wastewater System as an offset to operating and maintenance, debt service and replacement costs prov"Red for under items A, B and C above. 8r E.E. Monthly Billing Each'large user will be billed monthly for the number of thousands of gallons of wastewater that passed through its meter or meters times the rate developed above. Il. YEAR-END ADJUSTMENT Following the close of the fiscal year and the issuance of the annual finan- cial report, an actual rate for the year will be computed using the following formula: 1 1 1 1 AR =A + B + C - D NI 'Where AR = the actual rate per 1,000 gallons passing through the meter or meters of the large user, Al = the total actual operation and maintenance costs incurred during the fi&l year, BI - the total bond principal and interest payments and amounts necessary to satisfy bond covenant requirements during the fiscal year as described in Sec- tion B above (this amount will not change), 0 = The replacement cost formula as computed in Section C above (this amount will not change), and The total actual interest earners during the fiscal year, and �1 the total number of thousands of gallons of wastewater actually treated anti disposed of through the regional systcim for the year. we . �7- f b P_ Iippendi x A ',age Four Che amount of adjustment due from or to each large user will be calculated as shown in Table A-1. The actual rate, as computed above, will be multiplied by :he number of thousands of gallons of wastewater that passed through the meter )r meters of each large user during the year. The result, after being in- -rea ed by applicable penalties, if. any, as described in Sections 3.6, 5.2 and i.4 till be the user's total actual. charge for the fiscal year (column F�. the mount paid by the large user.is then subtracted to determine the addi- tional charge due from or the refund due to the large user (column H). A Large User =ort Lauderdale )akland Park Vilton Manors "amarac sort Everglades 'almdale • rotal Table A-1 Calculation of Year-end Adjustment B C D E F G H Due Gallons Regular Total From Treated in Actual Charge Penalties Actual Amount 11sei Thousands Rate B X C Assessed D& E Paid F- r IIII. EXCESS REVENUES OF THE REGIONAL SYSTEM 3evenues from regular user charges will be equal to the costs of operation and maintenance, debt service and bond covenant requirements and replacement con- tributions less interest earnings of the system. Receipt of interest-reven"e and penalties, if any, will result in a net income for the regional system, if path net income should occur, it will be transferred to the Replacement Account, thus resulting in lower replacement cost contributions for the following year. If any money should remain in the Replacement Account at the end of the 20 year period it will be deposited in the Replacement and Improvement Reserve Account. Any net income occurring after the initial 20 year period will also be deposited in the Replacement and Improvement Reserve %ccount. I2695E