Loading...
HomeMy Public PortalAboutJFOCP 2009-02-26Laughlin Water N G I N E E R S LTD. February 2, 2009 Council Members Fraser Sanitation District c/o Joe Fuqua, Superintendent P.O. Box 120 153 Fraser Ave. Fraser, CO 80442 RE: Engineering Rates Dear Mr. Fuqua: McLaughlin Water Engineers, for ongoing clients, typically establishes an hourly rate schedule valid for one year (until February 1) with next year's adjustments subject to your approval. A new rate schedule is not attached. For 2009, we have determined to continue our 2008 rates, which you have on file. Although municipal -type utilities work is still strong, we realize that the overall economic outlook is not great and believe we should "tighten our belts" along with most of our clients. Our principals want to continue to focus on continuing clients, thus minimizing marketing expenses (which don't really benefit you). The result is that our comparable rates are lower; we recently surveyed hourly rates for similar engineering firms and found ours to be lower in almost every category even though the relative experience of our personnel is greater. We still provide a 10% labor discount for our continuing clients on general 0 M type work and construction phase services, along with our other no charge customs e.g. no markup on expenses or subcontracts; no charge for part travel time or for short, incidental, consulting. Please call us if you have any questions concerning billings or service (or, of course, any projects or problems). Respectfully submitted, McLaughlin Water Engineers, Ltd. Ronald C. McLaughlin, P.E. L.S. McLaughlin Water Engineers, Ltd. 2300 15th Street, Suite 220 Denver, CO 80202 T 303.964.3333 F 303.964.3355 P: \Becky \Form Letter no Change of Rates Fraser.doc MEMO TO: FROM: DATE: SUBJECT: JFOC Partners Town of Fraser February 23, 2009 Wastewater Management Plan As you know, the Town of Fraser provided the JFOC members with a Wastewater Management Plan that outlined how wastewater operations would be incorporated into the Town as a result of the merger between the Fraser Sanitation District and the Town of Fraser. We recently received some suggested revisions to the plan from Grand County Water and Sanitation District #1 and Winter Park Ranch Water and Sanitation District. After evaluating these suggestions, we have concluded that there is merit to these comments and are proposing revisions to our plan. This memo is provided to outline those revisions and the financial impact of these changes. Rather than establish a Wastewater Department within the Town's organization that would be responsible for all wastewater operations, we would establish a Wastewater Treatment Plant Department that would be responsible for Wastewater Treatment Plant Operations while operation of the wastewater collections system within Town would be incorporated into our Public Works Department. The Wastewater Fund as previously described would now become two different funds; the Wastewater Treatment Plant Fund (all expenses /revenues related to plant operations, essentially a JFOC fund) and the Wastewater Fund (all expenses /revenues related to the operations of our collections system). Establishment of a department solely for the operations of the Wastewater Treatment Plant would require that this department have at least two individuals (more likely three) that can be dedicated to the operations of the Plant. This would be consistent with the design /management recommendations for the Plant, however, would increase the number of employees that are expensed to the JFOC. One or two new employees would be added to the Public Works Department for collections operations. Currently, the expenses related to three FSD employees are split between FSD and JFOC. We would anticipate that there would be an additional $100,000 to $125,000 in expenditures allocated to the JFOC Budget to establish this department. Administrative functions (human resources, financial administration, records management, JFOC meeting administration, general management, etc) for the JFOC would be provided via existing Town of Fraser positions. At this time, we believe that the $42,000 administrative /management fee would be sufficient to cover these services. We are confident that the JFOC would see an increase in the level of services provided via the Town and would recommend annual review of this fee. In addition to the management plan changes outlined above, we would propose a monthly meeting with the Managers of all three JFOC members and the Plant Superintendant to review current activities, discuss outstanding concerns /issues, review financials, and other applicable matters. This would not change the contractual relationship between the partners, or provide all three members with day to day management roles within the Town of Fraser organization; however, we believe this would be integral to the success of the relationship and open communication between the members. Given that this suggestion has merit, FSD has initiated these meetings already regardless of the status of the Town /FSD merger. We look forward to discussing this with the JFOC members further at the meeting on February 26, 2009.