12. Sewer Rate Analysis - Morrison-Maierlet isc
Incorporated 1892
Telephone (406) 758-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Box 1997
Zip 59903-1997
Bruce Williams
City Manager
City Council
Members:
Gary W. Nystul
Ward I
TO: Mayor and City Council
Cliff Collins
FROM: Bruce Williams
Ward
Barbara Moses
DATE: June 21, 1995
Ward11
RE.: Sewer Rate Consultant
Dale Haarr
Ward 11
Jim Atkinson
It has been sometime now since we have heard from Evergreen Ward III
sewer/water board concerning our disputed sewer rate. Lauren Granmo
Ward III
In an effort to move things forward, I believe it is in our
best interest to have an expert review our sewer rate Pamela B. Kennedy
structure, sewer treatment plant budget, methods used to Ward IV
calculate depreciation, the interlocal agreement and the Ron M. Duane Larson
Foltz (Evergreen's expert) data to determine properness of our Ward IV
budget, rate and charge to Evergreen as per the agreement.
I have been advised the best water/sewer rate expert. in
Montana is an engineer who works for Morrison Maierle. I
contacted Mr. Berry of Morrison Maierle last week and shared
with him my concerns as they relate to the interlocal
agreement with Evergreen. I asked Mr. Berry if he would be
interested in evaluating our sewer budgets, rate structure,
the interlocal and the Ron Foltz (Evergreen expert) analysis
and offer us his best expert opinion. He responded with a
short proposal (attached) indicating that he would entertain
the request for a fee of $80.00 an hour with an estimate of
60-80 hours to complete his work, plus expenses.
It seems to me that if we ever plan on making progress toward
resolution of our differences with Evergreen over the rate, we
will need expert opinions about our sewer rate, sewer budget,
practice, methods, and policies. Since Mr. Berry is the
recognized state expert and he is willing to take it on for
under $6,500, we might want to consider the proposal and have
the work completed so we at least have a third party expert
opinion.
I would recommend that you allow me to negotiate a contract
with Morrison Maierle to do the work covered in this memo.for
a price not to exceed $6,500.
JUN 2 0 1995
--� r MORRISON
MAIERLE, INC.
An Employee -Owned Company
June 16, 1995
Mr. Bruce Williams
City Manager
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903-1997
RE: Evergreen Sewer Agreement
Dear Bruce:
ENGINEERS
SCIENTISTS
SURVEYORS
PLANNERS
910 HELENA AVENUE • P.O. BOX 6147 • HELENA. NIT 59604 • 406.442-3050 • FAX: 406-442-7862
I would estimate the level of effort required to review your current wastewater charge system
and the data you presented me with, and, to prepare response to the Evergreen Water and Sewer
District comments and be prepared to defend thoses respones would require 60-80 hours of my
time at $80.00 per hour plus expenses.
It is unfortunate EPA has declined to become involved in the review of your wastewater user
charge structure at this time. Your original plant was funded by EPA and as a condition of
receiving that funding EPA reviewed your wastewater use and user charge ordinances to insure
certain conditions were satisfied. I am almost sure EPA also reviewed Evergreen's ordinances
too and I would not be surprised that EPA also did not have a hand in reviewing the orginal
agreement between the City of Kalispell and Evergreen.
Sincerely,
MORRISON-MAIERLE, INC.
Timothy R. Berry . E. , DEE
CC: Terry Richmond
J
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