HomeMy WebLinkAboutSANITARY SEWER BOARD (2) Assoc1Ctt2S,LLP
CPA's and Consultants
Otto W.Krohn,CPA,CGMA 231 E.Main Street,Westfield,Indiana 46074 American Institute of CPA's
James W.Treat,CPA,CGMA Indiana CPA Society
August 24, 2017
Mr. Len Ashack, Utility Director
City of Jeffersonville, Indiana
500 Quartermaster Court, Suite 300
Jeffersonville, Indiana 47130
Re: 2017 Municipal Advisor Services Contract Addendum
Dear Len:
Pursuant to our recent discussions, we are submitting this proposal for additional services relative
to a "limited cost of service analysis" to establish a more competitive Large Industrial User Rate
Classification and a corresponding additional rate block, as follows:
Scope of Services
Analyze customer usage&billing data for a recent"test year"by customer class
Analyze detailed usage&billing data for the 10 Largest Users for the "test year"
Update pro forma cash operating expenses and allocate said costs to their cost of service function
Collection
Treatment
Customer
General &Administrative
Determine baseline wastewater treatment cost per 1,000 gallons
Consider other revenue requirements appropriate to include in baseline treatment costs
Establish proposed rate block for potential Large Industrial Users that are unique to any of the City's
existing Industrial User base
Compare existing and proposed large user rates with existing large users and potential new
industrial users with unique usage characteristics
Identify other considerations for large industrial user characteristics (i.e. average day, peak day,
peak hour and excessive strength limitations)
Meetings and consultations with appropriate City Officials
Phone: 317-867-5888 Facsimile:317-867-5898 www.owkcpa.com
Mr. Len Ashack, Utility Director
August 24, 2017
Page 2
Estimate of Fees for Additional Services
Fees for services to be rendered will be based upon our standard hourly billing rates as identified in
our existing contract with the City dated January 23 &April 11, 2017. We estimate that our fees for
these additional services will fall within a range of$7,500 to $12,500.
Pursuant to our overall consulting services agreement with the City, we hereby submit this proposal
for"additional services" for consideration by you and the Utility Board.
Very truly yours,
0.W. Krohn&Associates, LLP
Otto W. "Buzz" Krohn, CPA, CGMA
Executive Partner
Acknowledged:
City of Jeffe s )le
C
Client Auth rized Represenative