March 17, 1994VIA FACSIMILE
Mr. John W. Abney, 11.
Abney Abney Construction, Inc.
Post Office Drawer 700
Okeechobee, Florida 34973
Subject:
Dear Mr. Abney;
A. Gather Information:
14: 46 5 q L EPIC, I r EEP5
SMITH AND GILLESPIE ENGINEERS, INC.
•os' orrlcE SOIL 63136
JACKSONVILLE, FLORIDA 32201
(0041 743.6960
March 17, 1994
Revised Cost Proposal
Proposed Water and Sewer Rates Analysis
S&G File No, 9402 001 -01
Okeechobee Utility Working Group
HAROLD R. BRIDGES, Ph.D.. P.E.
VICE PRESIDENT
I understand from our telephone conversation this morning that the Okeechobee
Utility Working Group has accepted our proposal dated March 15, 1994, provided
that certain changes are made to the scope of services. Therefore, pursuant to
the request of the Working Group, we are pleased to submit our revised proposed
scope of services and fee for conducting a water and sewer rates analysis.
The purpose of the proposed water and sewer rates analysis is to provide the
Okeechobee Utility Working Group with an understanding of: (1) water and sewer
rates uniform for all customers which would be required to maintain the existing
revenue of the system; and (2) a five -year projection of system revenues,
expenses and debt service requirements. The rates analysis will be made assuming
two levels of contribution ($2.O million and $3.O million) by the County and the
five -year projection will be made both with and without a proposed $8.0 million
wastewater improvements project.
To achieve the above purpose, the following scope of services is proposed:
1. Obtain copy of the City's Financial Statements for year ending
September 10, 1993, to establish existing system revenues.
2. Review City and OBWA billing records to establish number of
customers and water usage by meter size and user category in
the City, County and OBWA.
3. Review billing records, review previous reports and conduct
interviews to establish the projected customer growth by meter
size and category in the City, County and OBWA.
1
SMITH AND GILLESPIE ENGINEERS, INC.
B. Analyze Existing System:
1. Prepare a comparison of City rates both with and without OBWA
as a customer,
2. Calculate the system -wide, uniform rates required to maintain
the existing system revenues.
3. Assume two levels of County contribution ($2.0 million and
$3.0 million) tor the rate calculation in Item B2 above.
C. Project Future Earnings:
1. Prepare a five -year projection of estimated system revenues,
expenses and debt service requirements.
2. Prepare the above projection both with and without the
proposed $8.0 million wastewater improvements project.
D. Prepare Final Report:
1. Write a report summarizing the information gathered, analyses
and results.
2. Present the report to the Working Group on April 18, 1994, and
to a joint meeting of the City and req. on April 19, 1994.
We propose to complete the scope of services for a lump sum fee of $6,500.00.
We appreciate this opportunity to provide our services to the Working Group and
look forward to your acceptance of this proposal.
QovAici t, n46- -ri J6 ,4-7
C /4-tu, c)( 4 A46
SF cod-144)6. a Vii° r
HRB: jh
4
ACCEPTED 8
OKEtc40 UTIIJITY WORKIN GROUP
3/1414
003
Mr. John W. Abney, Jr.
Abney Abney Construction, Inc.
Revised Cost Proposal, Proposed
Water and Sewer Rates Analysis
8 &G File No. 9402 «00141
Okeechobee Utility Working Group
March 17, 1994 Page 2
Sincerely,
SMITH AND GILLE IE ENGINEERS, INC.
Harold R. Bridges, Ph.D.
M
VIA FACSIMIL$
03/22/94 17:13 S G ENGINEERS 002
Mr, John W. Abney, Sr.
Abney Abney Construction, Inc.
Post Office Drawer 700
Okeechobee, Florida 34973
SMITH AND GILLESPIE ENGINEERS, INC.
POST Orrice SOX 13136
JACKSONVILLE, FLORIDA 38201
(904) 743.6990
March 22, 1994
Subject: Water and Sewer Rates Analysis
S&G Project No. 9402. 001 -01
Okeechobee Utility Working Group
HAROLD R. BRIDGES, Ph.D., P.E.
VICE PRESIDENT
Dear Mr. Abney:
Information which we will need to obtain in order to complete the subject water
and sewer rates analysis is as follows:
1. City of Okeechobee Financial Statements for year ending
September 30, 1993.
2. City of Okeechobee Budget for FY 1993 1994.
3. City of Okeechobee water and wastewater billing information
for October 1, 1992 to September 30, 1993. A summary form is
attached.
4. A copy of OBWA's current rate resolution.
5. A copy of OBWA's Audit or Financial Statement for year ending
September 30, 1993 or December 31, 1993, as the case may be.
6. OBWA water billing and expenses information for October 1,
1992 to September 30, 1993, A summary for is attached.
It is preferable to obtain the billing summary data (Items 3 and 6, above) on a
monthly basis. However, not being familiar with either the City's or OBWA's
billing system, we do not know how difficult a task this may be. If necessary,
an annual summary would be acceptable.
SMITH AND OILLESPIE ENGINEERS, INC.
It will bet necessary to obtain the requested information by the first week
in April in order to maintain our schedule. I will call you to discuss this in
further detail.
HRB :jh
Enclosures
03/22/94 17:14 S G ENGINEERS 003
Mr. John W. Abney, Sr.
Abney Abney Construction, Inc.
Water and Sewer Mates Analysis
SO Project No.9402- 001 -01
Okeechobee Utility Working Group
March 22► 1994 Page 2
Sincerely,
SMITH AND GILLESPJ E ENGINEERS, INC.
Harold R. Bridges, Ph.D.,
CITY OF OKEECHOBEE
BILLING PERIOD:
A. RETAIL WATER CUSTOMERS
1. CITY
03/22/94 17:14 S G ENGINEERS 004
5/8 -3/4"
1"
1 -1/2"
2"
3"
4"
6"
8"
2. COUNTY
S/8 -3/4"
1"
1 -1/2"
2"
3"
4"
6"
8"
Total Water
Total
Number
Connection Fees:
Total Backflow Prevention Fees:
Total Water System Capacity Fees:
1
Total `Use.
t1000.gal.)
Total Water Connection Fees:
Total Backflow Prevention Fees:
Total Water System Capacity Fees:
'Total
Charges
n3/22/94
8. WHOLESALE WATER CUSTOMERS
1. CITY
2. COUNTY
2"
3"
4"
6"
17:15 5 G ENGINEERS
Meter
si Nutitbee.
11 11111E11E1E11111111 111101. .01111 1 1 1 I 1 I
2" M
3"
4"
6"
1.11141 ..111R114.im.. Mei
I
I
I
otat.'..:Vtiii..:
1000'...'
Is
I
I
I
005
.0%*4**:
C. RETAIL WASTEWATER CUSTOMERS
1. CITY
teter'
Size
5/8 -3/4"
1"
1 -1/2"
2"
3"
4"
6"
03/22/94 17:16 S a G ENGINEERS
8"
2. COUNTY
10"
1*ter
Size
5/8 -3/4"
1"
1 -1/2"
2"
3"
4"
6"
8"
10"
Total Wastewater Connection Fees:
Total Wastewater System Capacity Fees:
Total
Number.
4
11 111
(1000 gal.)
Total Wastewater Connection Fees:
Total Wastewater System Capacity Fees:
D. MISCELLANEOUS FEES AND SPECIAL SERVICE CHARGES
Total Fees and Charges:
Is
Is
Is
Is
Is
Is
I s
Is
Is
d otal Use Total
(1000 gal.) Charges
Toth
Charges.::
006
A. INCOME
03/22/94 17:17 S G ENGINEERS 007
1. MONTHLY CHARGES
B. EXPENSES
eter
Et&o 1
S/8 -3/4
1"
1 -1/2"
2"
3"
4"
6"
8"
OKEECHOBEE BEACH WATER ASSOCIATION
BILLING PERIOD:
2. OTHER FEES AND CHARLES
(Connection Fees, Development Charges, etc.)
Total Other Fees and Charges:
City of Okeechobee:
Operation Maintenance: