03-190Couac'� Fic # � 3 � ��O
�reen 5heec � �\3$�
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WHEREAS, in 1997 the City of Saint Paul and the Boazd of Water Commissioners
entered into an A�eement for Billing and Collecting Sewer Service Chazges whereby the
Saint Paul Regional Water Services through its water billing and collections funcrions
would bill and collect sanitary sewer chazges on behalf of the Sewer Utility; and
WHEREAS, said Agreement expired on December 31, 1999, and both the Boazd and the
City desired to extend the term of the agreement for an additional two yeazs; and
WHEREAS, a First Amendment to the A�eement which extended said Agreement to
December 31, 2001 was approved by Board Resolution No. 4679; and
WHEREAS, an eazlier version of this agreement was approved by Board Resolution No.
4853; and
WHEREAS, staff of the Sewer Utility requested modifications to the agreement after the
agreement was approved by Board Resolution No. 4853; and
WHEREAS, both City and Board staffwish to have the Board continue to provide billing,
customer service and collections services for sanitary sewer chazges; and
WHEREAS, Boazd staff has prepazed and does recommend approval of attached
Agreement; now, therefore, be it
RESOLVED, That the Board of Water Commissioners does hereby approve said
Agreement; and that the proper officers aze hereby authorized to execute said Agreement on
behalf of the Board.
Reguested by Department of:
Saint Paul Rezional Water Services
BY _1���16�t� " � ' ' ��?.c.��
General Manager
�doption Cer�ed by Couadl Seaetary
�y.
�pproved by
RESOLUTiON
OF SA1NT PAUL, MINNESOT�
- For� Approved by C;ty Attomey
Mayor Sor
3y
ydopted by Councii: Date �.� .� a-O O�
.
- 03-19,Q
" DEPARTMENT/OFFICE/COUNCII.: DATE H�Ti'IATED 113895
St Paul Regioaal Water Services February 7 2003 GREEN SHEET No.:
CONTACL PERSON & PHONE: IIi[17ALmaTE 7N1TL1L/nATe
Bernie R Bullert 266-6274 1 DEPARTMENI' DIR Z� a crrY comvcu.
Mi3ST BE ON COUNCII.AGENDA BY ATE ASSIGN ? aTY ATTORNEY _ Cl'1'Y CLERK
� ) FINANCIAI, SERV DII2. FINANCIAL SERt:/ACCTG
NUMBER 3 MAYOR(ORASST.) _ B091'A Of WaY¢i COIDIIlLSS10RCT5
FOR —
ROOTING
ORDER
TOTAL#OFSIGNAI"UREPAGES _1_(CLIPALLLOCATIONSFORSIGNATURE)
.ACTION REQUESTED: .
Council Approval of an Agreement for Billing and Collecfion of Sewer Service Charges between the Board of
Water Commissioners and the City of Saint Paul; the Board has approved said agreement by Resolution No.
4853 attached.
RECOMIOIENDATIONSApprove(A)orReject(R) PERSONALSERVICECONTRACLSM[JSTAIYSWERTfIEFOLLOWINGQUEST'iONS:
1. Has this persodfirm ever worked under a contract for this department?
PLANNINGCOMhIISSION yec Na
CIB COIYIl1RTfTEE 2, flas this persodfirm ever beeu a city employee?
CIVII,SERVICECOMIYIISSION Yes No
CiTy Council 3. Does this person/firm possess a sldll not uormally possessed by any curren[ city employee?
A_ BoaN of Warer Commissioners Yes No
Explain all yes answers m separate sheet and attach to green sheet
INITIATING PROBLEM, ISSiIE, OPPORTUNITY (Who, V✓hat, When, Where, Why): '
The previous agreement was approved in 1997; in 1999 it was amended to ea#end to December 31, 2001. This
Agreement remains in effect until December 31, 2007 and specifies that Board staff will continue to provide fhe
billing, collection and customer service functions for sanitary sewer and rainleader variance charges on a fee per-
biil basis. Board staff recently analyzed its cost of service for these functions; study findings support the "catch-
up" fee increase reflected in the agreement while annual fee per-bill increases are tied to increases in labor costs.
ADVANTqGESIFAPPROVED: K
� l
Agreement will be currenf. F E B 0'� 2��3
DLSADVANTAGESIFAPPROVED: �,/ .�TT�FiI�
None.
DISADVANTAGES IF NOT APPROVED:
Board will not receive fair paymenf for the services it provides.
TOTAbAMOUNTOFTRANSACTION $0 COST/REVENUEBUDGETED:
FUNDING SOURCE: .. A(,T1V17'Y NUMBER: �
FINANCIAL IlVFORMATION: (EXPLAIN)
F�B 1 4 2003
�T� �#�K
�,
�
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O 3 -\�o
AGREEMENT
Between
BOARD OF WATER COMMISSIONERS
And
CIT`Y OF SAINT PAUI.
This ab eement ("A�eement") dated trus day of , 2003 by and
between the BOARD OF WATER COMNIISSIONERS OF THE CITY OF SAINT PAITL, a
Municipal Corporation under the laws of the State of Minnesota (`Board"), and the CITY OF
SAINT PAUL, MINNESOTA (Saint Paul Sewer Utility Fund), a home rule charter City under the
laws of the State of Minnesota ("City")
WHEREAS, The Legislative Code of the City o£ Saint Paul was recodified and adopted by
Ordinance No. t6787 on May 5, 1981; and
WHEREAS, Section 77.02 of the Code provides that sewer service charges in the City be
based on the volume of sewage discharged into the City's sewer system as determined by the volume
of water used; and
WHEREAS, Section 77.02 further provides that the Board shafl collecE such sewer service
chazges along with the water charges, and all costs for such collection by the Boazd shall be included
as part of the sewer service charges; and
WHEREAS, the Board desires to be fairly compensated for providing such collection
services to the City; and
WHEREAS, Sections 77.03,77.04 and 77.05 pertain to the Board's authority to calculate
and collect the sewer charges based on metered water use and gives the Board the authority to
regulate any collection, refunding or adjustment of such sewer services; and
N \CLER]CA:.\$OARDWGREEtv]ENTS\hfiSC\PW_SEWER$Il,LING_2002DOC 1
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WI3EREAS, Section 77.06 does state that ail funds collected from the sewer service _
chazges shall be deposited with the Office of Financial Services into a fund known as the Sewer
Utiliry Fund.
NOW, THEREFORE, in consideration of the mutual terms and conditions, promises,
covenants and payments hereinafter set forth, the Boazd and City a�ee as foIlows:
Sectiott 1. Scope of the Board of Water Commissioners.
This agreement shall cover professional services for calculating, billing, collecting and
providing customer service functions related to sanitary sewer service collection chazges and other
designated collection functions by the Boazd for the City. This agreement applies to thosa
properties where the $oatd supplies water service and to those properties served by private supply.
Section 2. Responsibility of the City of Saint Paul.
The City will establish sanitazy sew rates for residential and commercial customers each
yeaz by resolution. The rates will be based on the volume of water used and will include minimum
chazges.
The City shall be responsible for determining the amount of credit issued to a customer for
sanitary sewer chazges for water that does not discharge to the sanitary sewer system. The City shall
promptly send to the Boazd a list of those credits to be applied to the appropriate customer's bill.
The City will provide to the Board on an annual basis, a list of properties to be charged for a
rain-leader variance.
Section 3. Services to be provided by the Board of Water Commissioners.
The Board will be responsible for calculating, billzng and coIlecting sewer service charges.
The Board will be responsible for notifying customers of the sewer volume chazge and sewer
minimum charge in the first billing cycie of each year.
N \CLEffiCAL\BOARDW�REEMENTS\MfiC\PW_SEWERBIl.LING 2002 DOC
2
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The Boazd will handle all questions, complaints, notifications, routine adjustments, partial __
payments, collections, and other customer service requests.
The Board will bill and collect chazges for the City rain-leader disconnect progi and remit
payment to the Sewer Utility Fund on the Inter-departmental Invoice used to transmit sanitary sewer
payments collected in the previous month.
The Board and City acknowledge that the Ciry may from time to time wish to provide
information to its customers using a bill insert developed by the Board. This will be done at no
additional compensation to the Boazd.
The total amount payable to the Sewer Utility Fund will equal the net sewer billings.
The net sewer billings is defined as the total dollar amount billed through the end of the last
full billing month, less sewer billing adjustments made by the Board and credits issued by the City.
The Board will provide the City a detailed breakdown of the net sewer billings for the last full billing
month on or before the fifteenth (15) day of each month. The total amount payable to the City will
be remitted on or before the last business day of the current billing month.
The Boazd and City agree to monitor the balance due on Boazd supplied water and private
supply water accounts and, when delinquent, to process according to water and sewer code
provisions. The Board agrees to provide the City a monthly accounts receivable aging schedule far
the top twenty-five (25) largest sewer customers by account dollar value that aze past due. This
aging schedule will show amounts broken down by thirty (30), sixty (60), ninety (90) and one
hundred twenty (120) days past due for the last full billing month on or before the fifteenth (15) day
of each month.
When an account shown on the aging schedule defined in the preceding paragraph reaches
ninery (90) days past due, representatives of the Board and the City agree to meet to develop joint
N.\CLERICAL\BOARD�AGREEMENTS\MiSC\PW SEWERBIl.LING 20C2.DOC
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collection planning no later than the first business day of the month following agin� report receipt _
by the Ciry.
The Board and the City a� that the Board will certify amounts due from private water
supply accounts to the property owner's real estate taxes if the amounts due aze ninety days
delinquent.
Section 4. Joint Responsibilities of the Board and the City
The Board agrees to use due diligence when collecting delinquent sewer bills; if, however,
collection of these charges is delayed or the charges become uncollectible due to bankruptcy, tax
forfeiture, or a cease in operations, the City agrees to reimburse the Board the full amount the Boazd
has remitted to the City for the uncollected balance of that account. Reimbursements to the Boazd
will only occur when the uncollected balance(s) for the delinquent customer grow larger than
$250,000. Any uncollectible balances reimbursed to the Board by the City shall constitute a claim
on the associated Late Fee Chazges accrued by the Boazd in accordance with Board policies and
procedures in effect at the time account balances become delinquent. When customer payments are
made on these accounts to the Board, Late Fee Charges will be remitted to the City along with
remittance of sewer use charge payment.
The Board and the City agree to meet each December to discuss service issues, customer
notification requirements and rate changes effective in the following year.
The Board and the City aeree to meet and confer at five (5) yeaz intervals, from the date of
this a�eement, to review the billing service charges.
Section 5. Compensation.
Method of Payment. In consideration of the Board's performance ofthis agreement the City
will pay the Board a billing rate of two dollars and five cents ($2.05) per bill per account in 2003.
N�\CLERICAL\BOARD�AGREEMENTS\YISC\PW SEWERBiLiING 2002.DOC 4
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The amount will be transferred to the Board simultaneously with payment to the City on an Inter- _
departmental Invoice. The billing rate shall be no greater than the lowest billing rate char�ed to
other municipalities served by the Boazd for like (volume based) services of calculating billing and
collecting.
Additional Services and Com�ensation. It is possible that conditions might arise during the
term of this agreement that alter the scope of services described in this agreement. If the City
requests additional services from the Board, the Board shall, within thirty (30) working days,
provide a written estimate of the cost. Upon agreement between the City and the Board as to the
amount of such extra compensation, and if the extra compensation is greater than One thousand
dollars ($1,000), an amendment to this agreement will be entered into establishing the scope and
extent of the additional services.
Rainleader Disconnect Com�ensation. In consideration of the Boazd's performance in the
collection of rain-leader disconnect charges the City will pay the Boazd eights seven cents ($0.87)
per bill, per account where the rain-leader disconnect chazge is applied, in 2003 for services of
billing and collecting.
Future Compensation. Future annual increases to the compensation the City will pay the
Boazd for billing service chazges will be the average of the percentage wage increases of the
American Federation of State, County and Municipal Employees, AFL-CIO, Local Union 1842 of
District Council 14 and the American Federation of State, County and Municipal Employees, AFL-
CIO, Local Union 2508 of District Council 14 for the yeaz billing services will be performed. In
addition, the City agrees to pay the Board an additional three cents ($.03) in each of the years 2004,
2005 and 2006 to more equitably share in the costs associated with calculating, billing, collecting
and providing customer service functions.
N \CLERICAL\BOARD�AGREEMENTS\M15C\PW SEWERB41,]NG 2002.DOC �
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Section 6. 1Votice.
All notices, requests, demands, and other communications hereunder shall be in writin� and
shall be deemed given if personally delivered or mailed, certified mail, retum receipt requested, to
the following addresses:
If to Board: Saint Paul Regional Water Services
General Manager
8 Fourth Street East — STE 400
Saint Paul, MN 55101
If to City: Director of Public Works Department
25 Fourth Street West
1000 City Hall Annex
Saint Paul, MN 55102
Section 7. Term of Agreement.
This agreement shall commence on the date of Saint Paul City Council approval or Boazd of
Water Commissioners approval, whichever is latest. The a�eement shall ternunate on December 31,
2007.
Section 8. Amendment.
This Agreement may be amended in writing for additional terms prior to the expiration of the
current term, or for any other reason, upon such terms and conditions as may be mutually agreeable
between the parties. Both paYties expect revisions during the life of this agreement. - Such revisions
shall and may be accomplished and approved by mutual written approval of Saint Paul Regional
Water Services General Manager and the Director of the Public Works Department.
Section 9. Termination.
This Agreement may be terminated in whole or in part by either party in the event of
substantial failure by the other pariy to fulfill its obligarions under this Agreement through no fault of
the terminating party, provided that no termination may be effected unless the other party is given
N:\CLERICAL\BOARD�P.GREEN'cNTS\MBC�PW SEWERBII.LING 2002DOC
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(a) not less than one (1) year written notice of intent to terminate, and (b) an opportunity for _
consultation with the terminating pariy prior to said notification of intent to terminate.
This Agreement may be terminated in whole or in part without cause, provided both parties
agree to such temvnation in writing.
IN WITiVESS WHEREOF, the parties hereto have caused this Agreement to be executed in
their behalf respectively as of the day and year first above written.
. � . � 1
By ���.c " l � �Y2�^�"'`� "`
Bernie R. Bullert, General Manager
Approved as to form:
BY 67'i�.� `�1 - (/ � �
Assistant City Attorney
�..• �
�
:
.
S
Director, Public Works Departrnent
Approved as to form:
BY '�A�S� �T • ������ -
Assistant City Attorney
BOARD OF WATER COVIlVITSSIONERS
OF THE CITY OF SAINT PAUL
By �
es C. Reiter, President
By �
J et Lindgren, Se�
SAINT PAUL, MINNESOT.
crty of
By -`�
City Clerk
B �Cf'��� <�
Director, Office of Financial Services
N�\CLERICAL�BOARDWGREEMENTS\MLC\PW SEWER$H.LING 2�02.DQC 7
BOARD OF WATER COAdMISS10�lERS
RE50LUTlON — GE�IERAL FORM
PRESENTEO BY HaI'ii5
COMMISSIONER
t�3 —�9s3
No 4874
January 14, 2003
WHERE?,S, in 1997 the Ciry of Saint Paui and the Board of Water Cominissioners entered into an
A�eement for Billing and Collecting Sewer Service Chasges whereby rhe Saint Paul Regional Water
Services through its water billing and collections functions wouid bill and collect sanitary sewer
chazges on behalf of the Sewer Utility; and
WHEREAS, said A�eement expued on December 31, 1999, and both the Board and the Ciry desued
to extend the term of the agreement for an additional two yeazs; and
WHEREAS, a First Amendment to the Agreement which extended said Agreement to December 31,
2001 was approved by Boazd Resolution No. 4679; and
WHEREAS, an earlier version of this agreement was approved by Boazd Resolution No. 4853; and
WHEREAS, staff of the Sewer Utility requested modifications to the agreement after the aa eement
was approved by Boazd Resolution No. 4853; and
WHEREAS, both City and Board staff wish to have the Boazd continue to provide billing, customer
service and collections services for sanitary sewer chazges; and
WHEREA S, Boazd stafi has prepared and does recommend approval of attached Agreement; now,
therefore, be it
RESOLVED, "I`hat the Boazd of Water Commissioners does hereby approve said Agreement; and that
the proper o�cers aze hereby authorized to execute said A�eement on behalf of the Board.
Water Commissioners
Yeas Anfang
Harris
Zanmiller
President Reiter
Nays
Adopted by the Board of Water Commissioners
Sanuary 14, �y� 2003
In favor 4_ Oppos� � � � �'
SECv
c�.�` _ �- �
G_=_e^ She_= r � a3���
i
?=2ser.c2_ °Y
Re_ec_zc ^_'o
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WHEREAS, in 1997 the Ciry oi Saint Paul and the Board oi Water Commissionzrs
entered into an A�eement for Billin� and Collecting Sewz: Service Chazses whereby �hz
Saint Paul ReQional Water Services throu�h its water billin� and collections functions
would bill and collect sanirary sewer chaz�es on behalf oi the Sewer Utility; asid
WHEREAS, said A�reement expued on December 31 1999, and both the Boazd and the
Ciry desired to extend the term of the a�eement for an additional two years; and
WHEREAS, a First Amendment to the Agreement which extended said A�reement to
December 31, 2001 was approved by Board Resolution No. 4679; and
WHEREAS, an eazlier version of this a�eement was approved by Board Resolution No.
?8�3; and
WHEREAS, staff of the Sewer Utility requested modifications to the a�reement after the
agreement was approved by Board Resolution No. 4853; and
WHEREAS, both City and Board staffwish to have the Board continue to provide billing,
customer service and collections services for sanitary sewer char�es; and
WHEREAS, Board staff has prepazed and does recommend approval of attached
Agreement; now, therefore, be it
RESOLVED, That the Board of Water Commissioners does hereby approve said
Agreement; and that the proper officers aze hereby authorized to execute said Agreement on
behalf of the Boazd.
Reques(ed bg Den�t^eat oi:
Saint Paul Regional Water Services
$y: ����ri� �� ��rGC.C�it.C�/�
General Manager �
=.coptioe Ce:tu:e� by Couacl Seceta.ry
�V
i�
'.pproved 'py
CI
..
R�SOLUTiCN
O� S„fN i PAUL. M!h�c�CTr.
Fon App,eve� by Gty?_ttorncy
:�{;ycr io;
'r
idected bv Co�*_nci: Date �� .� � D�