HomeMy WebLinkAboutCity of Tamarac Resolution R-87-162w Introduced b//L%
Y� � Temp. Rests. #4566
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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