HomeMy WebLinkAbout5.251 Original ContractJanuary 14, 1991
Mr. John Maxwell
Economic and Engineering Services, Inc.
P.O. Box 976
626 Columbia St. NW, Suite 2 -A
Olympia, Wa. 98507
Dear John:
Enclosed is the executed copy for your files of the letter of
Agreement with the City to provide a cost of service study for our
solid waste operation.
Very yours;
Ja «I Pi tis, P.E.
Dir -c •r of Public Works
321 E FIFTH P 0 BOX 1150 PORT ANGELES, WASHINGTON 98362
PHONE (206) 457 -0411
cc: City Clerk, 2nd original of Agreement
CITY OF PORT ANGELES
FILE
Mr. Jack Pittis
City of Port Angeles
PO Box 1150
Port Angeles, WA 98362
Subject: City of Port Angeles Solid Waste Rate Evaluation
Letter Contract
Dear Jack:
This letter contract is submitted to finalize the agreement between Economic and
Engineering Services, Inc., (EES) to provide consulting services to the City of Port Angeles in
review of City solid waste rates.
It is understood that this evaluation will assess impacts of known changes in capital and oper-
ating expenses on the existing rate structure, both with and without costs associated with a
proposed recycling program for the city. In July, 1990, the City developed and prepared solid
waste rates based upon available information. Subsequently, refined data has been made
available which could affect the adequacy of the existing rates. EES is being asked to assist
the City assess impacts to existing rates, given the new data. It will be the City's responsibility
to provide current information regarding the solid waste utility's financial data to further
analysis. All information regarding solid waste projections by class of customer will also be
provided by the City. In addition, the City will provide estimates of all capital and operating
expenses associated with the continued operation and eventual closure of the facility, and will
provide EES with all revenue and expense information anticipated with the proposed solid
waste recycling contract.
Based on this understanding, the following Scope of Work is proposed:
1- Revenue Requirements
CITY OF PORT ANGELES
PUBLIC WORKS
FYI.
DIRECTOR
DEPUTY DIRECTOR
CITY ENGINEER
SOUD WASTE
SEWER/WATER
STREET
BUILDING
E ECONOMIC AND ENGINEERING SERVICES, INC.
Task Task Activities
ACTN. COPY (CONC.
1 1
1 1
i 1
1 1
I
I 1
I
1 1
Olympia, WA
Bellevue, WA
PD Box 976 6��o��mbia St NW 2 -A
P O Box 976 626 Columbia St NW Suite 2 -A
Olympia, Washington 98507
(206) 352 -5090 FAX (206) 357 -6573
January 10, 1991
Vancouver, BC
File 70190
Portland, OR Washington, DC
RECEIVED
CITY OF PORT ANGELES
PUBLIC WORKS
EES will prepare a source and application of
funds analysis comparing the revenues and
expenses anticipated by the City during the
next 5 -year planning horizon. EES will
structure the analysis using a Lotus 123
software program which, upon completion of
the project, will be provided to the City
for their future use. Data furnished by
the City will be input regarding revenues as
well as operating and capital expenditures
during this period. Overall surplus or
Mr. Jack Pittis
January 10, 1991
Page 2
2 Cost of Service Evaluation
Work Activities
3 Policy Review
4 Rate Design
5 Recycling Program Evaluation
deficiencies of revenues at current rate
levels will be established.
EES will evaluate revised revenue
requirement impacts on the allocation and
Cost of Service methodology previously used
by the City. Solid waste generating data by
class of customers, as provided by the City,
will be used in this allocation.
Improvements in Cost of Service methodology
will be recommended by EES.
EES will review the following policies and
their potential impact on either the Cost of
Service or solid waste rate structure:
o Free landfill dumping directly by City
citizens
o Free Christmas tree pickup service by City
o Free collection of yard waste in the
spring
o Basis for appropriate landfill tipping
charges for tires and appliances
o Pickup and disposal of senior citizen and
handicapped customer solid waste upon
request
EES will survey practices of several
similarly sized solid waste utilities in the
State of Washington and advise the City.
Any influence on Cost of Service and rate
design will be incorporated into final
recommendations within the EES report.
Based upon the results of items 1- 3 above,
the existing rate structure will be reviewed
and improvements recommended if necessary.
The Revenue Requirements and Cost of Service
will be revised to include the expense of
implementing a recycling program for the
City. Source and Application of Fund
Analysis results from Task 1 will be revised.
A review of the benefits and impacts of the
recycling program to commercial accounts
will be analyzed as a part of this task.
The overall rate impact will be estimated.
Mr. Jack Pittis
January 10, 1991
Page 3
Budget
The above work will be performed for a fee not to exceed $4,000 without prior authorization
of the City.
Schedule
EES is prepared to proceed immediately, upon receipt of information requested from the
City of Port Angeles, to prepare the Source and Application Analysis. We understand the
City wishes to have the draft results of the above analysis for all tasks completed by January
31. A draft letter report will be sent to the City for review, appropriate comments will be
incorporated, and a final letter result will be submitted to the City within 5 working days of
receipt of the City's review comments.
We appreciate the opportunity to be of assistance to the City. If you find this letter contract
to be in order, please sign both attached copies and return one for our files.
Sincerely,
Al 1'1464
John M. Maxwell, P.E.
Vice President
JMM:aa:9
Enclosure
cc: Tom Gould
Approved By:
City of Port Angeles
Date
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Economic and Engineering Services Inc,
Date
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