ATTACHMENT B
ORIGINAL
AMENDMENT NO. 1
TO SEV^OilR SERVICE CHAKGE BILLING AND COLLECTION AGREEMENT OF DECJSMBEK 12,1997,
BYANDBETI^TEEN •
• EAST BAY l\fUNICIPAL UTILTTY DISTMCT
AND
• cm'OF OAKLAND
THIS AMENDMENT, dated the I2th day of March. 2007 (hereinafter the "AMENDlsdEl^IT") amends the Agreement dated December 12, 1997 for billing and collection of sewer charges (hereinafter the "AGREEMENT"), by and between the EAST BAY MUKICPAL UTiUTY DISTRICT (hereinafter the "District"), apublic entity, and the dTY OF OAKLAND (hereinafter "the Agency"), a municipal corporation.
WITl^SSETH
WBBKEAS District's Board of Directors adopted Motion 33076-97 on November 12.1997 authorizing the AGREElvIENT for billing and collection of sewer charges, and •WHEREAS on December 12. 1997. the Agency and District (collectively, the "PARTIES") entered into the AGREEMENT for billing and collection of sewer charges; and WHEREAS this AMENDMENT NO. 1 is made pursuant to paragraph 3.07 - Amendments in the AGREE]\4ENT; and
WHEREAS the-PARTIES wish to amend EXEHBIT A - Agency .Shared-Cost Calcniations for Billing and Colleclion of Sewer Service Charges to delete the reference to "excluding replacement of Customer Information System" and omit the designations "minoT" relating to fixed assets; and
"Pt^HEREAS the PARTIES wish to amend paragraph 1.02 - Terai Of Agreement in the AGREEMENT to extend the term of the original AGRBEMENT by three years Trbm July 1; 2O07 to Jtily 1, 2010, and to provide for one year's written notice before implementing a new rate tier calculation for the new Customer InfonnatioD System; and WHEREAS this AMB^iDlvlEm NO. 1 only relates to EXHIBIT A - Agency Shared-Cost Calculations for Billing and Collection of Sewer Service Charges and paragraph 1.02 - Term Of Agieement of the AGREEMENT-, as specified above and below; and WHEREAS aL other provisions of the AGREEMENT remain unchanged and in full force and effect.
NOW, THEREFORE, the PARTES do agree as follows:
EXHIBIT A - AgencY Shared-Cosf Calculations for Billing and Collection of Sevrer Service Charges, . • -
EXHIBIT A - Agency Shared-Cost Calculations for Billing and Collection of Sewer Service Charges of the AGREEMENT is replaced in its entirely with EXHIBIT A, Amendment No. 1 Agency Shared-Cost Calculations for Billing and Collection of Sewer Service Charges attached.
1.02 Term Of Agreement '
Paragraph 1.02 of the AGREEMENT is replaced in its enturety with the following: . .
The District will bill and collect the Agency's sewer service charge pmsuani to the terms of this Agreement until July 1, 2010 unless otlieiwisetenmnated as provided in paragraph 1.05. The District will provide twelve months written notice prior to implementing a new rate tier calculation for the District to recover from the Agency its proportionate share of the cost of the new Customer Information System.
IN WITNESS WHEREOE, the parties hereto each herewith subscribe the same in duplicate, •
EAST BAY MUNICIPAL UTILITY DISTKICT
Jtebecca F. Lamorfeaux
Manager of Customer and Community Senices
Date
Approved To Form
By:.
For^ Office of the General Counsel
CITY OF OAKLAND
Name: ^tSm^^ .... ^
Date: (^l./Z^lo 7
WPY E>3I1BIT A - Ai^trjcy Shared-Co-^i Calcuialiorji. for Bill.in^' arid Colleciiorj of St-wtr Sej-vjc-.
Cl'iaryf;;-: of ifji; AGl-^I^EA'lEls^T'ii: jepJact^d in in, cntijery swth E.IJrllEi'JT A, .An'jfcndnjfcni •.ND; 1 A^ieijcy SJ)ared-Co,';i CaJculation.'; :/or BiJhj'jL; and CoJleciion of Sewer Scn-ite Churntf:: aitiicbtd Paragj-;iph l.Ofi of iJjt AGIlEEhiEENTi^: rtpJactd m iU; cjnirery w.iih l)jt :followjijg:
The DisLi-jc! will bill and colleci the Agency'^; sewer service chaj-ge pursuan! to i]je le-rmis of ihi<-- AiTeenieni nniil luly 1, 2010 UJiki;£ otherwi:^e lerminatsd HL. jDJ'ovidfcd in paragraph 1.05. The Disuici will provide twelve- monihi; wrixten noiict-jirioi'to implementing b ueu* rate iJcj calculaiiori for the'Disuict to rtcovtr iroiij w-t Ai'tncy iti proportionals sl>aT> of the cost of the nsw Cosion'j£r Informaiior] System.
Dv] Wrrj\TESS WHEP_EOR tiie parties hfirtio each here-witli subscribi; the sanie m duphcate.
EA5T BAY mNICIP.AL UTILITY DISTRICT
For the Office of the General Counsel
CITY OF OAICLAND
By: [ [ • Date:,
A'<277Z c:
. Tide:
ippr^^ ^ To -Po.!^ . ,
•t By: : Date: ( :
Hebfccca F. Lamoream: .
Idanager of Customer and Communir]'Services - |
Approved A.s To Form
Bv: •
EXHIBIT A
Amendment: No. 1
Aaencv Shared-Cost Calculations for Billino and Collection of Sewer Serv-ice Charges.
The following outline is a numerical and narrative description ox the shared-cost calculations for Billing and • Collection of sewer service charges for any agency. It is for illustrative.. TDuroo.'^F:'^ The
:penses
only and does 'not represent any particular agency charges, schedule suminarizing the share of Billing and Collection ex for'the "Agency" -follows the narrative.
The Billing and. Collection esg^enses come from Collection, Customer'Ser\^ice and Meter Reading Activities, and they are allocated based on each agency's share of revenues collected, share of bills issued, and share of meters read by the'District.
Calculation Definition
Share of Collections
ABnual Agency Revenue collecced for
"Agency" of $600,000 is
divided by the
Annual DisCricC Revenue collected of
$200,000,000 to equal .003.
Ihis factor is multiplied by
Annual District Collection £>Tiense5 of
$3,000,000 to ecrual "Agency's" share
of Collection eyzpenses totaling
$9,000.
L
Annual Agency Revenue collected is the
yearly amount of sewage revenue
invoiced on each bill relating to the
agency.
Annual District Revenue collected is
the yearly amount of District water
and District sewage treatment' and
agency revenue invoiced on each
District water bill.
Annual District Collection expenses
are defined as Salsixies and Employee
Benefits, Services and Supplies, and
Fixed Assets directly charged to
Collections during the Year. In
addition to the direct charges, an
overhead amount is charged based on'
Total Collection Salary and Employee
Benefit dollars.
Amendment No. 1
Calculation
Share of Customer Serv^ices
Si3:ty percent of Annual District
customer Service expenses of
$5,000,000, OX $3,000,000, is
Definition
di'-ji-ded by the
Annual number of District bills-
rennered to customers of 2,200,000 to
equal the Cost per Bill of $1.3636.
Tie Cost per Bill is multiplied by
"Agency's' participatory share of
billing entities, 1 of 3 on each bill,
or 33.33 percent. The Cost" per' Bill
for the agenciy charge is $.4535. This_
a^nount is
multiplied by
the Annual number of "Agency" bills,
issued by the District of 30,000 to
egual "Agency's" share of Customer
Service eitpeiises of $13,635.
Aimual District Cuscomer Service
escpenses are defined as Salaries and
Employee Benefits, Services and
Supplies, and Fixed Assets directly
charged to Business Office
Administration, Repair Business Office
Bldgs . , Etnd Equipment, Grounds keeping
B.o.-'s, :CU5tomer-Records and Billings,
Customer Information Systeins, and
Administrative and General during the
Year. In addition to the direct
charges, an overhead amo.uzit is charged
based on Total Customer Services
Salary and Employee Benefit dollars.
At the present; time, forty percent of
Che total customer Services e^cpenses
relate only to Water System business
and are not shared by agencies, and
siKty percent relates to tocal
combined District water, - District
sevjage treatment, and agency business.
Annual number of District bills used
to collect revenues for the District.
The portion of each bill relating to
the Agency refers to the number of
entities who share the benefit of
billing. District Water, District
Wastewater, and Agency are the three
current entities who may share billing
and collection. However, all three
may not be present on all-bills.
Agencies that share the benefit of
billing with only District Water have
a participatory share of billing of 1
of 2 entities or 50 percent.
The Annual .number of .Agency bills
issued by the District may include
charges for District Water, District
Wastewater, and Agency. • One, two or
three entities may be listed, on each
bill depending on the location of the
service;
EXHXEXT A
Amendment Mo. 1
Calculation Def ini tion
Share of Meter Reading
Annual District Meter Seeding •e>rpenses
of $2,000,000 is
divided by the "
Annual number of District bills
rendered to custccners of 2,200,000 to
egual the Cost per Bill'of $.9091.
The Cost per Bill is multiplied by-^
'Agency'.s^" participatory shajre of each
billing, entities 1 of 3 on each bill,
or 33.33 percent. The Cost per Bill
for the agenci' charge is $.303. This
amount is
multiplied, by
the annual number of' "Agency" bills •
reguiring flow data from meter
readings of 3,000 to etjual "Agency's"
share of Weter Reading Costs of $909.
Total annual District: Meter Keading
expenses are defined as Salaries and
Employee Benefits, Services and .
Supplies, and Fixed itssets directly
charged to - Read Meters during the
Year. In addition .to the direct
.charges, an overhead .amount is charged
based on Total Meter Reading Salary
and Employee Benefit doll sirs.
Annual number of District bills used,
to collect revenues for the District.
The portion of each bill relating to
the Agency refers-to the nimiber of
entities who use meter reading data in
the calculation of charges chat appear
on each bill. District Water, District
Wastewater, and Agency may all base
charges on flow data derived from
meter readings. Agencies that share
the benefit of billing with only
District Water have a participatory
share of billing of 1 of 2 entities or
50- percent.
The Annual number of Agency^bills
reguiring flow data from meter
readings issued by the District.
J
In summary, by adding together the share of Collection eoqpense of $9,000, the share of Customer Service e>;pense of $13; 535 and the share of Meter Reading expense of $909, the actual annual Billing and Collection share for '^Agency" will be $23,544. This figure'represents the "Agency's" shared cost of the District's billing and collection operation. Actual cost varies by the nature of events during a year, and it may not necessarily reflect the-above algorithm.
Approved as to Form and Legality
OAKLAND CITY dfcHCaLp/f 3,^5
Resolution No. C.M.S.
RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AMENDMENT NO. 2 TO THE SEWER SERVICE CHARGES, BILLING AND COLLECTION AGREEMENT OF DECEMBER 12, 1997, BY AND BETWEEN EAST
BAY MUNICIPAL UTILITY DISTRICT (EBMUD) AND THE CITY OF OAKLAND FOR A TERM OF THREE YEARS FROM JULY 1, 2010 TO JULY 1, 2013 WHEREAS, on December 12,1997, both the City and the District collectively entered • into an Agreement for billing and collection of sewer charges; and WHEREAS, on March 12, 2007, the City and District entered into Amendment No. 1 to i ' extend the term of the original Agreement by three years from July 1, 2007 to July 1, 2010; and ;] WHEREAS, the Amendment No. 1 extended the term of the original agreement by three:
years from July 1, 2007 to July 1, 2010. 1|
WHEREAS, the Amendment No. 2 will extend the term of the Agreement by three years from July 1,2010 to July 1,2013; and H
WHEREAS, the average projected annual revenue will be $44,105,000 with the new proposed sewer fee increase; and
WHEREAS, the new Agreement is estimated to cost the City an average of SI million annually in service charges under the current rate tier calculation methodology and this cost is budgeted within the Fund 3100 - Sewer Service Fund and; WHEREAS, this Agreement would require EBMUD to provide the City twelve months prior notice to establish a new tier calculation for Sewer Service Charges, Billing and Collections; and
WHEREAS, should the City wish to terminate the agreement, the City is required to give a 90 day notice to EBMUD; now, therefore, be it
RESOLVED, that the City Administrator is hereby authorized to execute Amendment No. 2 to Sewer Service Charges, Billing and Collection Agreement of December 12, 1997, by and between East May Municipal Utility District (EBMUD) and the City of Oakland for a term of three years from July 1, 2010 to July 1, 2013.
IN COUNCIL. OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - BROOKS, DE LA FUENTE, KAPLAN, KERNIGHAN, NADEL, QUAN, REID AND
PRESIDENT BRUNNER
NOES -
ABSENT-
ABSTENTION -
ATTEST:
LATONDA SIMMONS
City Clerk and Clerk of the Council of
the City of Oakland, California
I' •
Il ! -I • '\ I
ii I