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.