Public Works, Sewer and Water

CITY OF VERONA PUBLIC WORKS/SEWER & WATER COMMITTEE TUESDAY, MAY 28, 2019 – 5:15 P.M. VERONA CITY CENTER 111 LINCOLN STREET VERONA, WI 53593 AGENDA 1. Call to order. 2. Roll call. 3. Approval of the minutes of the April 22, 2019 meeting of the Public Works/Sewer and Water Committee. 4. Discussion and action regarding Awarding Contract for Project 2016-123, CTH PD expansion from Woods Road to CTH M. 5. Discussion and action regarding Amendment No. 2 with MSA Professional Services for Land Acquisition in regards to Project 2016-123, CTH PD (Woods Road to CTH M). 6. Discussion and action regarding Verona waterworks rate study. 7. Discussion and action regarding Verona sanitary sewer rates. 8. Discussion and action regarding Tower 1 maintenance. 9. Discussion and action regarding on going public works and utility projects. 10. Adjourn. Evan Touchett Chairperson POSTED: Verona City Hall, Verona Public Library, Miller’s Market ALL AGENDAS ARE POSTED ON THE CITY’S WEBSITE AT www.ci.verona.wi.us IF YOU NEED AN INTERPRETER, MATERIALS IN ALTERNATIVE FORMATS, OR OTHER ACCOMMODATION TO ACCESS THE MEETINGS, PLEASE CONTACT THE CITY CLERK AT 845-6495 AT LEAST 48 HOURS PRECEDING THE MEETING. EVERY REASONABLE EFFORT WILL BE MADE TO ACCOMMODATE YOUR REQUEST.  CITY OF VERONA MINUTES PUBLIC WORKS/SEWER & WATER COMMITTEE MONDAY, APRIL 22, 2019 1. The meeting was called to order by Mr. Touchett at 5:21pm. 2. Roll Call: Present: Evan Touchett, Chad Kemp, and Sarah Gaskell. Also present: Theran Jacobson, Public Works Director; Jeff Montpas, City Engineer, AECOM; Adam Sayre, Interim City Administrator; Carla Fischer, AECOM; Bill Dunlop, JSD; Tomas Toro, JSD; Fred DeVillers, FDG. 3. MOVED by Touchett, seconded by Kemp, to approve the minutes of the April 8, 2019 meeting of the Public Works/Sewer and Water Committee. Motion carried 3-0. 4. Mr. Jacobson stated that Construction Related Services for transportation improvements adjacent to west side Verona High School campus was outside of the staff ability for the City to handle, and that the City would contract this out and act as a pass-through for this project, and pass the costs along to the VASD. Mr. Jacobson detailed the research the city has done to review the possible contractors and recommends KL Engineering. Mr. Jacobson informed the VASD last month and previous Friday that the City would be contracting this out, and he had not heard back from VASD regarding this. MOVED by Gaskell, seconded by Kemp, to recommend approval of professional services agreement for Construction Related Services for transportation improvements adjacent to west side Verona High School campus with KL Engineering, contingent upon legal review by the council, and not to exceed $293,884.00. Motion carried 3-0. 5. Mr. Jacobson listed a review of past discussion items concerning Whispering Coves Subdivision, including minimum right-of-way widths, school site location/traffic and road adjacent to the school and storm water management facilities. Review of most current submittal from Mr. Dunlop: • Only one retaining wall SE corner near pond between Kettle Creek North • Working with landowner to south to combine basins • East 40 basins resized larger to handle events so there is no requirement for individual lots; volume control, treatment and infiltration for back-to-back 100 year events can be handled by the basins • Likely basins will be combined to circle the conservancy • Includes control for school site and east 40 • Pump station operations three modes: o Continual flow to have an amenity. o Need for infiltrate because of a storm event, pump either into that amenity which would run through different infiltration ponds or into a specific filtration pond through valving. Valving would be controlled from the panel at the pump station. o After catastrophic event, after infiltrate for 48 hrs, give the basins a rest and pump excess to west to the dry trib. • Currently doing a sensitivity analysis to determine how much of the development they can construct without having to construct a force main to the west • Experience in Stoughton: they were able to do phase I and II before needing the emergency element • No sense putting force main in before needed  Mr. Touchett: Will you cover insurance policy for basements that flood after first two phases are built? Mr. Dunlop: The analysis has been done that shows basement elevations are two feet above back-to- back 100 year events. Stoughton example increases confidence. Sensitivity analysis will provide force main construction information. Mr. Jacobson: What storm event will get to within two feet of freeboard requirements without pumps? 4”? Mr. Dunlop: We will do that sensitivity analysis with pumps running and with pumps failing. There were several continued questions and clarifications by Committee members on timing. Mr. Touchett: What’s the impact on the Backus property? Will that be part of analysis? Mr. Dunlop: Yes, that analysis has already been done and Carla Fischer can talk to that. Both 100 year event and back-to-back 100 year events stay under elevation of existing property. Continued discussions on 500-year or worse events, number of pumps, pump noise levels. Public Works Committee indicated they would likely not support channel and continuous pumping. Costs of additional wear and tear on pumps and lift stations for a visual amenity should not be supported by rate payers. Mr. Jacobson: In order to meet infiltration requirements, developers will have to move water around on-site. Mr. Dunlop: Yes, we will have to. Eastern 40 of residential area drains to basins and there is no soil there that can infiltrate. We will have to pump it up to infiltrate. Ms. Fischer: How big will the main infiltration basin have to be to meet the requirements without re- circulation? 4x? 2x? Mr. Dunlop: Physically I don’t see how that’s going to work. If I remember from Cory’s analysis, it’s a function of topography of the lot and there’s not enough area of soil to do what you want to do, and everything to the east is already downstream of that spot, so we already have to pump it there anyways just to get the infiltration requirements for that portion, which is roughly 80 acres. Mr. Toro: What we are trying to do here is use a resource that we have that would otherwise be dry. Once a storm is over, the water that would naturally reach that area will dissipate, and instead of pumping excess water elsewhere to the dry trib, to pump it here instead. Continued discussions on environmental waste of constant pumping, and not using more natural draining processes. Ms. Gaskell: Amenity not needed. No need for the City to set a precedent of coming to an agreement with a developer for having an amenity. • School road width did not change, right-of-way to stay within 66’ minimum. School site is still in limbo. Ms. Gaskell: From the trail perspective, can we run it from where it’s popping into the school site on the north there, out to McKee as well? Mr. Dunlop: There are some significant grade issues there, we could not get it ADA accessible. That’s why we show the path along the roadway, the grades even out. It would be a more suitable route. Continued discussion on switchbacks and kids on bikes, snowplowing operations, pathway networks, sidewalks maintained by PW must be at least 6’. • Mr. Jacobson: Intersection approaches are still showing sweeps, that’s a racetrack. Design standards that the FDM has that Montpas can provide, there should be a 13 degree skew Mr. Dunlop: We are trying to keep that feature in there to keep the traffic flowing. Mr. Jacobson: We use the standards on urban streets in Verona, and they slow people down. No one  will yield otherwise. It will accommodate pedestrian crossings. Ms. Gaskell: We are more concerned with safety than keeping traffic moving, especially near schools. I have no problem with people stopping there. Mr. Jacobson: I still don’t like the geographics of these intersections, I’d rather see less of a skew. This is probably more like 40 degrees. Less will slow drivers down. No action taken. Touchett left the meeting at 6:00pm. 6. MOVED by Kemp, seconded by Gaskell, to adjourn at 6:16pm. Motion carried 2-0. Public Works Committee May 28, 2019 Item (4) Awarding Contract for Project 2016-123, CTH PD expansion from Woods Road to CTH M. Two bids were received and are listed below in order lowest to highest: • Low bidder, Payne and Dolan of Fitchburg, WI in the amount of $1,479,552.75. • Edgerton Contractors, Inc. of Oak Creek, WI in the amount of $1,573,146.03 The estimate without contingencies was $1,614,094.90. The following bid items provided a significant reduction as compared to the estimate: • Hot mix asphalt • Curb and gutter • Mobilization Payne and Dolan has provided work in the City of Verona as a subcontractor to other prime contractors in previous years’ projects for the City of Verona with the most current being in 2018. Based on past work performed in the City of Verona and references checked, Public Works Staff is of the opinion that Payne and Dolan has the personnel, equipment and financial assets necessary to complete the 2016-123, CTH PD expansion project. Item (5) Awarding Contract for Project 2019-102, Amendment No. 2 with MSA Professional Services for Land Acquisition in regards to Project 2016-123, CTH PD expansion from Woods Road to CTH M MSA professional services is under contract for providing land acquisition coordination and execution for the CTH PD road expansion project from Woods Road to CTH M. Amendment No. 2 is for additional services such as: extended duration of project; level of complexity; increased parcel count; negotiation time; coordination with property owners, legal counsel, and staff; and executing the final land negotiation. Contract is a time and materials not to exceed. • Original contract value (approved 12/12/2016) = $45,000 • Amendment No. 1 (approved 9/25/2017) = $7,000 • Amendment No. 2 = $15,000 Staff recommends approval of Amendment No. 2 with MSA. Item (6) Verona waterworks rate case update. Baker Tilly our City Auditors and City staff (Utility) submitted the water rate case to Wisconsin Public Service Commission in July of 2018 after recommendation for Public Works Committee on July 23, 2018. The rate case is nearing the final stages after multiple data requests from PSC staff, coordination with Auditors and PSC staff, and data request responses by staff and Auditors. Utility received a response from PSC staff on May 15, 2019 that PSC staff has analyzed the rate case based upon information provided by Utility and Auditors. Utility and Auditors reviewed the PSC letter. Utility responded on May 21, 2019 to the letter that the Utility is in agreement. The next steps are within PSC staff control as they will develop the cost of service study and a proposed rate design. PSC commission will ultimately act of the case at a date to be determined and then Utility / City will act for any changes necessary to rates and codes. Item (7) Verona Sanitary Sewer Rates The City approved ordinance no. 16-876 amending Title 9 Chapter 2 of the Code of Ordinances on June 27, 2016. The significant cost to the utility each year is from Madison Metropolitan Sewerage District for the treatment of the City’s population raw wastewater. Language within the ordinance allows the Director of Public Works to automatically adjust the sewer rate for the annual increases from MMSD. The MMSD rate change is a complex calculation with multiple variables and inputs therefore staff engages with our Auditors with the rate change. Our Auditors recommend a rate change of 3.4% to satisfy the MMSD increases from 2017 base rates to 2019 new rates, therefore: • Volume rate change from $3.54 to $3.71 per 1000 gallons • ¾-inch residential quarterly meter charge from $40.11 to $40.35. • Other meter sizes are identified below: Item (8) Tower 1 Maintenance Discussion and update for Tower 1 maintenance in regards to 2019 schedule of work. Item (9) On-going public works and utility projects Discussion and updates for ongoing public works and utility projects.  AECOM 1350 Deming Way Middleton, WI 53562 aecom.com May 22, 2019 City Council Members 111 Lincoln Street Verona, WI 53593 Subject: Letter of Recommendation CTH PD Reconstruction 2016-123 Woods Road to CTH M AECOM PN 60530309 City ID 2016-123 Dear Council Members, In accordance with the Official Notice to Bidders, sealed bids were received for the above subject project at the office of the Director of Public Works until 10:30 a.m. local time on May 22, 2019. Following the close of bidding, the bids received were publicly opened and read aloud. We have reviewed all of the bids received and have enclosed a copy of the Bid Tabulation for your information. Two (2) sealed bids were received for the project. The low bid was submitted by Payne & Dolan, Inc. of Fitchburg, WI, in the amount of $1,479,552.75. The high bid was submitted by Edgerton Contractors, Inc. in the amount of $1,573,146.03. The engineer’s estimate for this project was $1,614,094.90. The bid of $1,479,552.75 is approximately 8 percent below the engineer’s estimate. AECOM recommends that the City of Verona accept the bid of Payne & Dolan, Inc. for CTH PD Reconstruction 2016-123 Woods Road to CTH M and would recommend award of the contract in the amount of $1,479,552.75. We respectfully present these recommendations for review and consideration. Should the City Council accept the recommendations set forth herein, the award of the contract to Payne & Dolan, Inc. of Fitchburg, WI should be made by formal motion in the amount of $1,479,552.75. Per the bidding documents, should the City Council so decide to award a contract for the work, the award must be made on or before May 28, 2019. We will be pleased to answer any questions concerning the recommendation set forth herein. Sincerely, Zach Larson, PE Project Manager AECOM T: 608-828-8165 M: 715-340-3796 E: Zachary.Larson@aecom.com enclosures: Bid Tally aecom.com P:\60530309\500_Deliverables\506_Bid Opening\2016-123 Bid Recommendation Letter.docx 1/1  Bid Tally The City of Verona CTH PD Reconstruction 2016‐123 Woods Road to CTH M May 22, 2019 Difference Difference From Engineer's Estimate Payne & Dolan, Inc. From Eng. Est. Edgerton Contractors, Inc. Eng. Est. Item # Item Quantity Units Unit Cost Total Unit Cost Total Unit Cost Total 204.0115 Removing Asphaltic Surface Butt Joints 200 SY $ 25.00 $ 5,000.00 $ 30.00 $ 6,000.00 $ 1,000.00 $ 30.00 $ 6,000.00 $ 1,000.00 416.0170 Concrete Driveway 7‐Inch 130 SY $ 60.00 $ 7,800.00 $ 55.00 $ 7,150.00 $ (650.00) $ 55.00 $ 7,150.00 $ (650.00) 455.0605 Tack Coat 2000 Gal $ 3.00 $ 6,000.00 $ 2.25 $ 4,500.00 $ (1,500.00) $ 2.25 $ 4,500.00 $ (1,500.00) 460.6223 HMA Pavement 3 MT 58‐28 S 6500 Ton $ 75.00 $ 487,500.00 $ 69.95 $ 454,675.00 $ (32,825.00) $ 69.95 $ 454,675.00 $ (32,825.00) 460.6224 HMA Pavement 4 MT 58‐28 S 400 Ton $ 90.00 $ 36,000.00 $ 79.85 $ 31,940.00 $ (4,060.00) $ 79.85 $ 31,940.00 $ (4,060.00) 460.6424 HMA Pavement 4 MT 58‐28 H 4100 Ton $ 80.00 $ 328,000.00 $ 76.65 $ 314,265.00 $ (13,735.00) $ 76.65 $ 314,265.00 $ (13,735.00) 465.0105 Asphaltic Surface 1300 Ton $ 80.00 $ 104,000.00 $ 87.90 $ 114,270.00 $ 10,270.00 $ 87.90 $ 114,270.00 $ 10,270.00 465.0125 Asphaltic Surface Temporary 30 Ton $ 200.00 $ 6,000.00 $ 152.00 $ 4,560.00 $ (1,440.00) $ 152.00 $ 4,560.00 $ (1,440.00) 465.0315 Asphaltic Flumes 25 SY $ 70.00 $ 1,750.00 $ 125.00 $ 3,125.00 $ 1,375.00 $ 125.00 $ 3,125.00 $ 1,375.00 601.0411 Concrete Curb & Gutter 30‐Inch Type D 8700 LF $ 16.00 $ 139,200.00 $ 13.25 $ 115,275.00 $ (23,925.00) $ 13.25 $ 115,275.00 $ (23,925.00) 602.0420 Concrete Sidewalk 7‐Inch 600 SF $ 9.00 $ 5,400.00 $ 9.50 $ 5,700.00 $ 300.00 $ 9.50 $ 5,700.00 $ 300.00 605.0515 Curb Ramp Detectable Warning Field Natural Patina 60 SF $ 50.00 $ 3,000.00 $ 46.00 $ 2,760.00 $ (240.00) $ 46.00 $ 2,760.00 $ (240.00) 620.0300 Concrete Median Sloped Nose 400 SF $ 10.00 $ 4,000.00 $ 8.80 $ 3,520.00 $ (480.00) $ 8.80 $ 3,520.00 $ (480.00) 632.0101 Trees 98 Each $ 625.00 $ 61,250.00 $ 800.00 $ 78,400.00 $ 17,150.00 $ 570.00 $ 55,860.00 $ (5,390.00) 632.0201 Shrubs 46 Each $ 75.00 $ 3,450.00 $ 200.00 $ 9,200.00 $ 5,750.00 $ 90.00 $ 4,140.00 $ 690.00 632.9101 Landscape Planting Surveillance and Care Cycles 1 LS $ 10,000.00 $ 10,000.00 $ 7,500.00 $ 7,500.00 $ (2,500.00) $ 17,600.00 $ 17,600.00 $ 7,600.00 634.0612 Posts Wood 4x6‐Inch 12‐FT 1 Each $ 65.00 $ 65.00 $ 80.00 $ 80.00 $ 15.00 $ 65.00 $ 65.00 $ ‐ 634.0614 Posts Wood 4x6-Inch 14-FT 39 Each $ 75.00 $ 2,925.00 $ 80.00 $ 3,120.00 $ 195.00 $ 65.00 $ 2,535.00 $ (390.00) 634.0616 Posts Wood 4x6‐Inch 16‐FT 2 Each $ 85.00 $ 170.00 $ 80.00 $ 160.00 $ (10.00) $ 65.00 $ 130.00 $ (40.00) 637.2210 Signs Type II Reflective H 225.39 SF $ 20.00 $ 4,507.80 $ 25.00 $ 5,634.75 $ 1,126.95 $ 22.50 $ 5,071.28 $ 563.48 637.2230 Signs Type II Reflective F 18 SF $ 30.00 $ 540.00 $ 25.00 $ 450.00 $ (90.00) $ 25.00 $ 450.00 $ (90.00) 646.1020 Marking Line Epoxy 4‐Inch 15255 LF $ 0.75 $ 11,441.25 $ 0.50 $ 7,627.50 $ (3,813.75) $ 0.50 $ 7,627.50 $ (3,813.75) 646.3020 Marking Line Epoxy 8‐Inch 2517 LF $ 1.00 $ 2,517.00 $ 1.30 $ 3,272.10 $ 755.10 $ 1.30 $ 3,272.10 $ 755.10 646.5020 Marking Arrow Epoxy 17 Each $ 250.00 $ 4,250.00 $ 215.00 $ 3,655.00 $ (595.00) $ 215.00 $ 3,655.00 $ (595.00) 646.5120 Marking Word Epoxy 3 Each $ 300.00 $ 900.00 $ 225.00 $ 675.00 $ (225.00) $ 225.00 $ 675.00 $ (225.00) 646.5220 Marking Symbol Epoxy 12 Each $ 225.00 $ 2,700.00 $ 110.00 $ 1,320.00 $ (1,380.00) $ 110.00 $ 1,320.00 $ (1,380.00) 646.6120 Marking Stop Line Epoxy 18‐Inch 45 LF $ 11.50 $ 517.50 $ 15.00 $ 675.00 $ 157.50 $ 15.00 $ 675.00 $ 157.50 646.7120 Marking Diagonal Epoxy 12‐Inch 95 LF $ 8.75 $ 831.25 $ 7.50 $ 712.50 $ (118.75) $ 7.50 $ 712.50 $ (118.75) 646.7220 Marking Chevron Epoxy 24‐Inch 127 LF $ 12.50 $ 1,587.50 $ 8.50 $ 1,079.50 $ (508.00) $ 8.50 $ 1,079.50 $ (508.00) 646.7420 Marking Crosswalk Epoxy Transverse Line 6‐Inch 110 LF $ 9.50 $ 1,045.00 $ 10.00 $ 1,100.00 $ 55.00 $ 10.00 $ 1,100.00 $ 55.00 646.8120 Marking Curb Epoxy 235 LF $ 10.00 $ 2,350.00 $ 5.50 $ 1,292.50 $ (1,057.50) $ 5.50 $ 1,292.50 $ (1,057.50) 647.0606 Marking Island Nose Epoxy 5 Each $ 200.00 $ 1,000.00 $ 175.00 $ 875.00 $ (125.00) $ 175.00 $ 875.00 $ (125.00) 652.0225 Conduit Rigid Nonmetallic Schedule 40 2‐Inch 1722 LF $ 6.50 $ 11,193.00 $ 6.00 $ 10,332.00 $ (861.00) $ 6.00 $ 10,332.00 $ (861.00) 652.0235 Conduit Rigid Nonmetallic Schedule 40 3‐Inch 746 LF $ 7.50 $ 5,595.00 $ 7.00 $ 5,222.00 $ (373.00) $ 7.00 $ 5,222.00 $ (373.00) 653.0164 Pull Boxes Non‐Conductive 24x42‐Inch 3 Each $ 1,500.00 $ 4,500.00 $ 1,300.00 $ 3,900.00 $ (600.00) $ 1,300.00 $ 3,900.00 $ (600.00) 654.0105 Concrete Bases Type 5 10 Each $ 700.00 $ 7,000.00 $ 600.00 $ 6,000.00 $ (1,000.00) $ 600.00 $ 6,000.00 $ (1,000.00) 654.0230 Concrete Control Cabinet Base Type L30 1 Each $ 1,500.00 $ 1,500.00 $ 1,300.00 $ 1,300.00 $ (200.00) $ 1,300.00 $ 1,300.00 $ (200.00) 655.0610 Electrical Wire Lighting 12 AWG 3144 LF $ 0.65 $ 2,043.60 $ 0.85 $ 2,672.40 $ 628.80 $ 0.85 $ 2,672.40 $ 628.80 655.0620 Electrical Wire Lighting 8 AWG 9420 LF $ 0.80 $ 7,536.00 $ 1.00 $ 9,420.00 $ 1,884.00 $ 1.00 $ 9,420.00 $ 1,884.00 656.0200.01 Electrical Service Meter Breaker Pedestal CTH PD Lighting 1 LS $ 1,800.00 $ 1,800.00 $ 1,300.00 $ 1,300.00 $ (500.00) $ 1,300.00 $ 1,300.00 $ (500.00) 659.1120 Luminaires Utility LED B 20 Each $ 350.00 $ 7,000.00 $ 225.00 $ 4,500.00 $ (2,500.00) $ 225.00 $ 4,500.00 $ (2,500.00) SPV.0060.006 Mobilization and Contract Administration (Contract B) 1 Each $ 115,000.00 $ 115,000.00 $ 58,500.00 $ 58,500.00 $ (56,500.00) $ 202,094.88 $ 202,094.88 $ 87,094.88 SPV.0060.007 Landmark Reference Monuments 2 Each $ 1,000.00 $ 2,000.00 $ 400.00 $ 800.00 $ (1,200.00) $ 1,580.10 $ 3,160.20 $ 1,160.20 SPV.0060.008 Raze Dwellings 2 Each $ 20,000.00 $ 40,000.00 $ 14,400.00 $ 28,800.00 $ (11,200.00) $ 0.01 $ 0.02 $ (39,999.98) SPV.0090.002 Concrete Curb & Gutter 24‐Inch Type D 8050 LF $ 15.00 $ 120,750.00 $ 12.75 $ 102,637.50 $ (18,112.50) $ 12.75 $ 102,637.50 $ (18,112.50) SPV.0090.003 Concrete Curb & Gutter Special 24‐Inch Type D 410 LF $ 18.00 $ 7,380.00 $ 18.00 $ 7,380.00 $ ‐ $ 18.00 $ 7,380.00 $ ‐ SPV.0090.004 36‐Inch Concrete Gutter 170 LF $ 30.00 $ 5,100.00 $ 21.00 $ 3,570.00 $ (1,530.00) $ 21.00 $ 3,570.00 $ (1,530.00) SPV.0105.002 Survey (Contract B) 1 LS $ 20,000.00 $ 20,000.00 $ 30,150.00 $ 30,150.00 $ 10,150.00 $ 25,281.65 $ 25,281.65 $ 5,281.65 SPV.0105.003 Transport and Install Corridor Lighting Materials 1 LS $ 10,000.00 $ 10,000.00 $ 8,500.00 $ 8,500.00 $ (1,500.00) $ 8,500.00 $ 8,500.00 $ (1,500.00) Project Total $ 1,614,094.90 $ 1,479,552.75 $ 1,573,146.03 P:\60530309\500_Deliverables\506_Bid Opening\2016‐123 Bid Tally Sheet  AMENDMENT NO 2 (2/21/19) to the Agreement for Professional Services between City of Verona, Wisconsin (CITY) and MSA Professional Services, Inc. (MSA) for Reconstruction of CTH PD (Woods Road –CTH M) This Agreement, made and entered into on December 19, 2016, is hereby amended as follows and is made part of the original AGREEMENT. Amendment is required because: a. When the original agreement was signed, the schedule for the real estate acquisition work was assumed to be from July – December 2017 with an April 2018 construction schedule. The City of Verona was pursuing a possible alternative funding source for construction of the project. The actual timing of the acquisitions was delayed and the majority of the Offering Price Reports were approved in January 19, 2018. The duration of the project increased by approximately 6-8 months. b. The level of complexity for the parcels has increased since the time of the original agreement for the Right of Way required for the project. Significant amount of additional negotiation time due to increased development in the project area, resulting in higher land values from the time the appraisals were prepared, landowners not responding in a timely manner to continued follow up on the project, and attorney involvement on many of the parcels. c. The City of Verona’s desire to reach a negotiated settlement without using the Eminent Domain process extended the negotiation and increased offer approval time. d. Due to a change in WisDOT policy and to the process for lending institutions involved, the number and complexity of obtaining the Partial Releases of Mortgages required more time than the assumed requirements in the original agreement. e. The original contract included up to one meeting per parcel owner. The actual number of meetings per parcel owner was significantly higher. f. Parcel 8-Integra Investments, LLC sold part of their land to Parcel 10-North Neighborhood, LLC, requiring a plat revision, additional title reports, coordination with the City of Verona, City of Verona Attorney & representative and AECOM. g. Annexation Agreement-extended the acquisition process for Parcels 8 & 10. Parcel 8- continued tenant relocation follow-up due to the land not being transferred to the City of Verona, therefore not requiring a notice to vacate to be provided to the tenants. h. Added litigation work relating to Parcel 11-Gerald & Linda Endres parcel. The City of Verona desires to reach a Negotiated Settlement for the land previously acquired by an Award of Damages for the CTH M project and the land rights required for the CTH PD project. If a negotiated settlement is not achieved, Parcel 11 on the CTH PD project will be acquired through the Eminent Domain process by an Award of Damages. Legal counsel will need litigation assistance to defend the City of Verona as court proceedings continue. (Time & Materials). BY THIS AMENDMENT: 1. For items a – g above, this Amendment #2 changes the total contract amount from the Original Contract and Amendment #1 from $56,200 to $61,500 (increase of $5,300). 2. For item h above, this Amendment #2 adds a Time and Material cost item for litigation assistance work relating to the (Endres parcel) as requested by the City. Compensation will be Time and Material basis. Estimated fee of $10,000 is based on approximately 80 Page 1 P:\9200s\9280s\9286\09286014\Contract\Amend #2\9286014 Verona-CTH PD- Amend_2 -2-20-19 Beth.doc  – 90 hours. As the work progresses, MSA will notify the City if the work required is projected to extend beyond this amount. 3. TOTAL cost of this Amendment #2 is $15,300. In witness whereof, the parties hereto have caused this Amendment to be executed and approved by their authorized officers or representatives, effective on the date written herein. CITY OF VERONA MSA PROFESSIONAL SERVICES By: By: Luke Diaz Quirin R. Klink Mayor Transportation Team Leader Date Date February 21, 2019 Page 2 P:\9200s\9280s\9286\09286014\Contract\Amend #2\9286014 Verona-CTH PD- Amend_2 -2-20-19 Beth.doc  Public Service Commission of Wisconsin Rebecca Cameron Valcq, Chairperson 4822 Madison Yards Way Ellen Nowak, Commissioner P.O. Box 7854 Mike Huebsch, Commissioner Madison, WI 53707-7854 May 15, 2019 Mr. Theran Jacobson, P.E. Verona Water Utility 410 Investment Court Verona WI 53593 Ms. Kate Hanson, Staff Attorney Citizens Utility Board 6401 Odana Road, Suite 24 Madison, WI 53719 Re: Application of the City of Verona, Dane County, 6100-WR-103 Wisconsin, as a Water Public Utility, for Authority to Adjust Water Rates Dear Mr. Jacobson and Ms. Hanson: Public Service Commission (Commission) staff has analyzed the Verona Water Utility’s (Utility) application for a water rate increase. The application was received on July 31, 2018. On November 30, 2018, the Utility requested an extension to January 9, 2019, to respond to Commission staff’s initial data request, mainly due to Utility staff back log and its transition of accounting software packages. (PSC REF#: 354055.) On January 11, 2019, the Utility proposed several adjusting entries to address the accounting for impact fees along with several other PSC Annual Report adjustments. (PSC REF#: 357384.) A reconciliation of the proposed adjustments was e-mailed to Commission staff on May 1, 2019 and filed on May 7, 2019. (PSC REF#: 366124.) This document summarizes all adjustments to Utility Plant and related accounts that were proposed in this rate proceeding. After all proposed adjustments are made the net contributed plant variance is $221,446, which Commission staff considers reasonable. This difference is similar to the amount that is still expected in impact fee collections. Commission staff also reviewed each of the proposed adjustments in this rate proceeding and reflected these adjustments in the proposed revenue requirement for the 2018 test year. The attached contains Commission staff’s proposed 2018 test year revenue requirement exhibit (Exhibit) and will serve as the basis for the cost of service study. Alex Hanna, Rate Analyst, will soon develop the cost of service study and a proposed rate design. A copy of that exhibit will be sent separately upon completion. Commission staff will submit both proposals at the public hearing, which will be scheduled at a later date. Telephone: (608) 266-5481 Fax: (608) 266-3957 Home Page: http://psc.wi.gov E-mail: pscrecs@wisconsin.gov Mr. Theran Jacobon, P.E. Docket 6100-WR-103 Page 2 Please note the Commission staff proposal is based on a 5.30 percent return on net investment rate base. This rate of return is the current benchmark for municipal rate cases at the time the revenue requirement was finalized. Based on the Utility’s capital structure and debt payment schedules, 5.30 percent return provides adequate debt service coverage. Attached as Schedule 4 is the list of depreciation rates that is the basis of Commission staff’s estimated depreciation expense for the test year. Please note that some rates may be different than previously authorized. When the final decision is issued in this docket, these depreciation rates will be certified for use by the Utility effective January 1, 2019. Please note that the general service and public fire protection rates are typically effective within 90 days of the final decision. During the review of the Utility’s rate application, several items that resulted in additional review are important to note. • In 2001, the Utility constructed the water tower, booster station, and mains and recorded the entire $2,403,676 as Utility Financed Plant. The Utility transferred $1,273,574 of these capital assets from Utility Financed to Contributed Plant from 2001-2010. Based on the 1995 Impact Fees – Public Facilities Needs Assessment (Assessment), the Utility intended to construct these assets partially to serve new development. (PSC REF#: 357421.) However, the Assessment was updated in a letter dated April 28, 1997 from Mr. Robert E. Gundlach, P.E. with Rust Environment and Infrastructure Inc. (PSC REF#: 364566). These changes were reflected in the 1997 Report on Water Impact Fees (PSC REF#: 357383). Facilities that are based on impact fee studies and constructed to serve growth shall be recorded as Contributed Plant. The Utility proposed adjusting entries in this rate proceeding to correct the accounting for impact fees along with the associated adjustment to Accumulated Depreciation and Unappropriated Earned Surplus (216.2). The summary of the adjustments that were made are as follows. o Adjustment 1 reclassified $1,130,102 from Utility Financed Plant to Contributed Plant based on capital assets that were financed by impact fees. o Adjustment 2 reclassified $1,034,037 from Contributed Plant to Utility Financed Plant to move projects that were not funded by impact fees. o Adjustments 4 and 5 reclassified $393,887 from Capital Paid-In to Unappropriated Earned Surplus - Contributed Plant for 2005 developer contributed projects. o Adjustments were also made to Accumulated Depreciation and Unappropriated Earned Surplus associated with these above adjustments. Mr. Theran Jacobon, P.E. Docket 6100-WR-103 Page 3 The Utility shall also make these proposed adjustments in the books that were closed for 2018, report the adjustments in the 2018 PSC Annual Report, and refile that report. (PSC REF#: 366124.) • In 2010, the Utility was reclassified from a Class C to a Class AB utility. Pursuant to PSC § 185.43(2), Class AB utilities are required by the Uniform System of Accounts to institute a perpetual inventory of their assets known as Continuing Property Records (CPR). The Utility’s CPR shall maintain: o a system of plant accounts as prescribed by the Uniform System of Accounts o that all property units will be described in sufficient detail to permit identification and will have the location information to allow verification of their physical existence; o that all property units will be identified with construction costs to establish their original cost for capitalization and retirement accounting o that the age and service life of property units will be calculable for depreciation studies (original cost, description, age, and proper retirement unit); o that source documents supporting the original cost and quantities of property units will be preserved for a period of 6 years after plant is retired; o that maps may be part of the CPR if they contain a description of the unit, their location, and the year of construction. Commission staff recently requested additional information about the condition of the Utility’s CPR in this rate proceeding and noted that the Utility’s CPR has not been fully developed. Commission staff recommend that a requirement be added to the final decision in this rate proceeding regarding improvements to the CPR and timelines for the Utility to make such improvements. • The Utility included capital assets of $2,500,000 in the 2018 test year for the Well No. 6 project, approved by the Commission in docket 6100-CW-105. Commission staff removed this project from the revenue requirement due to updated information from the Utility indicating that construction will not begin until 2019 and be completed in 2020. Only those projects which are expected to be in service within the test year are included in the 2018 test year revenue requirement. • Several other smaller adjustments were also discussed through the data request process. The adjustments include several expense adjustments, including tower painting, membership dues, and labor. All other adjustments are described in further detail in the Exhibit. After reviewing, please confirm by Electronic Records Filing (ERF) that the Utility and the Citizens Utility Board (CUB) respectively are in agreement with Commission staff’s revenue requirement proposal as set forth in the Exhibit within 14 days of the date of this letter. Please Mr. Theran Jacobon, P.E. Docket 6100-WR-103 Page 4 identify the document type in ERF as “Exhibit Offered.” If the Utility or CUB are not in agreement with any individual component(s), please contact Commission staff for further discussion. If you have any questions regarding the above, please contact me. If you have any questions regarding the status of the rate case, please contact Alex Hanna at (608) 267-2336 or by e-mail at Alex.Hanna@wisconsin.gov. Sincerely, Bridgot Gysbers Public Utility Auditor – Advanced Public Service Commission of Wisconsin Division of Water, Telecommunications, and Consumer Affairs 608.267.0637 ǁ Bridgot.Gysbers@wisconsin.gov BAG:kle DL:01670804 cc: Vicky Lawry, Verona Water Utility Gwen Zech, Baker Tilly Virchow Krause, LLP Jodi Dobson, Baker Tilly Virchow Krause LLP  Docket 6100-WR-103 Ex.-PSC-Revenue Requirement Verona Water Utility Estimated 2018 Operating Income Statement Net Investment Rate Base and 2018 Estimated Revenue Requirement 4/23/2019  Schedule 1 Verona Water Utility 6100-WR-103 Estimated Operating Income Statement and Net Investment Rate Base 2018 Test Year Adjustments Utility Staff Estimate No. Amount Estimate Total Operating Revenues: $2,016,445 1 ($31,262) $1,985,183 Operating Expenses: Source of Supply $0 $0 $0 Pumping 116,500 0 116,500 Water Treatment 48,700 0 48,700 Transmission and Distribution 245,500 2 97,600 343,100 Customer Accounts 10,200 3 6,800 17,000 Sales 0 0 0 Administrative and General 261,600 4 10,180 271,780 Total Operation & Maintenance Expenses $682,500 $114,580 $797,080 Depreciation 564,326 5 (72,644) 491,682 Amortization 0 0 0 Taxes 797,902 6 (59,702) 738,200 Total Operating Expenses $2,044,728 ($17,766) $2,026,962 Net Operating Income (Loss) (28,283) ($13,496) (41,779) Net Investment Rate Base: Utility Plant in Service $19,524,680 7a ($2,691,283) $16,833,397 Less: Accumulated Provision for Depreciation 4,793,068 7b (462,356) 4,330,712 Net Plant in Service $14,731,612 ($2,228,927) $12,502,685 Add: Materials and Supplies 37,928 0 37,928 Less: Regulatory Liability - pre-2003 Depreciation on Contributed Plant 206,339 0 206,339 Net Investment Rate Base $14,563,201 ($2,228,927) $12,334,274 Rate of Return -0.19% -0.34%  Schedule 2 Verona Water Utility 6100-WR-103 Estimated Operating Income Statement Average Net Investment Rate Base and Revenue Requirement to Yield the Proposed Rate of Return 2018 Test Year Staff Increase Proposed Estimate Required Rate Level Total Operating Revenues: $1,985,183 $695,496 $2,680,679 Operating Expenses: Source of Supply $0 $0 Pumping 116,500 116,500 Water Treatment 48,700 48,700 Transmission and Distribution 343,100 343,100 Customer Accounts 17,000 17,000 Sales 0 0 Administrative and General 271,780 271,780 Total Operation & Maintenance Expenses $797,080 $797,080 Depreciation 491,682 491,682 Amortization 0 0 Taxes 738,200 738,200 Total Operating Expenses $2,026,962 $2,026,962 Net Operating Income (Loss) (41,779) 653,717 Net Investment Rate Base: Utility Plant in Service $16,833,397 $16,833,397 Less: Accumulated Provision for Depreciation 4,330,712 4,330,712 Net Plant in Service $12,502,685 $12,502,685 Add: Materials and Supplies 37,928 37,928 Less: Regulatory Liability - pre-2003 Depreciation on Contributed Plant 206,339 206,339 Net Investment Rate Base $12,334,274 $12,334,274 Rate of Return -0.34% 5.30%  Schedule 3 Page 1 of 2 Verona Water Utility 6100-WR-103 Explanation of Staff Adjustments in Schedules 1 Particulars Amount Adjustment No. 1 To decrease Residential revenues based upon: ($31,262) - the staff estimated average customer count of 4,022 which is mainly due to removing Am-1 meters - estimated volume of 204,208 mgals based on the 2015-2018 average usage per customer per quarter. Adjustment No. 2 To increase the utility's estimate for Account 672, Maintenance of Distribution Reservoirs and $97,600 Standpipes to the 2018 PSC estimate of $157,300 based on a 15-year normalization for tower painting costs. Adjustment No. 3 To increase the utility's estimate for Account 902, Meter Reading Labor, to the 2018 PSC $6,800 estimate of $6,800. PSC estimate was based on an amount similar to actual 2018 which was reclassified from Account 920, Administrative and General Salaries. Adjustment No. 4 To adjust the utility's estimated Administrative and General Expense to the 2018 PSC estimate as follows: $10,180 a. To decrease the utility's estimate for Account 921, Office Supplies and Expenses to the 2018 PSC estimate of $22,400 based on a portion of membership dues that were disallowed due to lobbying activities. ($700) b. To increase the utility's estimate for Account 926, Employee Pensions and Benefits expense to the 2018 PSC estimate of $114,680 based on actual 2018 as reported in the 2018 PSC Annual Report. The increase in 2018 is mainly due to additional staff in 2018 where time is now being allocated to the water utility, which would also increase Pensions and Benefits expense. $10,880 Total Increase $10,180 Adjustment No. 5 To decrease the utility's estimated Depreciation Expense to the 2018 PSC estimate based ($72,644) upon the items noted below. - actual Utility Financed Plant in Service balances as reported in the 2018 PSC Annual Report for the test year - proposed depreciation rates per Schedule 5 - an allocation of a portion of depreciation on meters to the sewer department The primary reasons for the adjustment is the Well No. 6 project of $2,500,000 was removed from this case. The utility provided updated information on April 23, 2019, that construction is not expected to be completed until 2020, which is outside the 2018 test year. In addition, $165,260 in capital assets was reclassified from Utility Financed to Contributed Plant for costs that were financed by impact fees.  Schedule 3 Page 2 of 2 Verona Water Utility 6100-WR-103 Explanation of Staff Adjustments in Schedules 1 Particulars Amount Adjustment No. 6 To decrease the utility's estimated Tax and Tax Equivalent to the 2018 PSC estimate of $738,200. ($59,702) The primary reason for the adjustment is staff used a 3-year average effective tax rate to estimate PILOT. Adjustment No. 7 To adjust the utility's estimated Net Investment Rate Base to the 2018 PSC estimate as follows: ($2,228,927) a. To decrease Plant in Service to the 2018 PSC estimate based upon actual 2017 and 2018 plant additions and retirements. The adjustment is mainly due to Well No. 6 project of $2,500,000 which was removed from this case. The utility provided updated information on April 23, 2019, that construction is not expected to be completed until 2020, which is outside the test year. In addition, a reclassification adjustment was also made of $165,260 in capital assets from Utility Financed Plant to Contributed Plant for costs that were financed by impact fees. (2,691,283) b. To increase the utility's estimated Net Investment Rate Base to the 2018 PSC estimate by decreasing Accumulated Provision for Depreciation based upon: - estimated 2017 and 2018 depreciation accruals using authorized rates - actual retirements in 2017 and 2018 - an adjustment of $414,186 in Accumulated Depreciation associated with the impact fee adjustment. 462,356 Total Decrease ($2,228,927) Docket 6100-WR-103 Schedule 4 Verona Water Utility Schedule of Water Depreciation Rates Effective January 1, 2019 Account Depreciation Number Account Title Rate SOURCE OF SUPPLY PLANT 314 Wells and Springs 2.90% PUMPING PLANT 321 Structures and Improvements 3.20% 325 Electric Pumping Equipment 4.40% 328 Other Pumping Equipment 4.40% WATER TREATMENT PLANT 334 Other Water Treatment Equipment 6.00% TRANSMISSION AND DISTRIBUTION PLANT 342 Distribution Reservoirs and Standpipes 1.90% 343 Transmission and Distribution Mains 1.30% 345 Services 2.90% 346 Meters 5.50% 348 Hydrants 2.20% 349 Other Transmission and Distribution Plant 5.00% GENERAL PLANT 390 Structures and Improvements 2.90% 391 Office Furniture and Equipment 5.80% 391.1 Computer Equipment 26.70% 392 Transportation Equipment 13.30% 394 Tools, Shop and Garage Equipment 5.80% 396 Power Operated Equipment 7.50% 397.1 SCADA Equipment 9.20%  Schedule 1 Verona Sewer Utility MMSD Adjustment Clause - Updated User Charge Projected 2019 Recalculate to obtain Verona Sewer Utility's updated user charges Number of billings 4 MMSD Rate Calculated Current Rates Change Rates Volume $3.54 per 1,000 gals 0.173 $3.71 per 1,000 gals High Strength Surcharges BOD 0.221 per lb 0.010 0.231 per lb SS 0.298 per lb 0.027 0.325 per lb TKN 0.703 per lb 0.030 0.733 per lb P 3.325 per lb 0.333 3.658 per lb Meters 3/4" $40.11 per quarter 0.24 $40.35 per quarter 1" 70.68 per quarter 1.51 72.19 per quarter 1-1/2" 121.64 per quarter 3.61 125.25 per quarter 2" 181.79 per quarter 6.14 187.93 per quarter 3" 324.47 per quarter 12.04 336.51 per quarter 4" 527.30 per quarter 20.46 547.76 per quarter 6" 1,033.88 per quarter 41.53 1,075.41 per quarter 8" 1,642.37 per quarter 66.80 1,709.17 per quarter Page 1  Schedule 2 Verona Sewer Utility MMSD Adjustment Clause - Input Sheet Projected 2019 2019 2017 New Base Rates (NR) Rates (BR) Enter MMSD's volume and loading charge rate for the forecast and current period Volume (V) $0.65536 per 1,000 gals. $0.59315 per 1,000 gals. CBOD (BOD) 0.15905 per lb 0.14870 per lb Suspended Solids (SS) 0.26775 per lb 0.24099 per lb Nitrogen (TKN) 0.40279 per lb 0.37271 per lb Phosphorus (TP) 4.18724 per lb 3.85410 per lb Enter MMSD's equivalent meter and customer rates for the forecast and current period Equivalent Meters (E) Rate $36.45 per year $33.08 per year Customer (C) Rate $36.38 per year $38.78 per year Page 2  Schedule 3 Verona Sewer Utility MMSD Adjustment Clause - Calculation Sheet Projected 2019 Calculation of Adjusted Domestic Strength Charge: Formula NVR = AVR + CVR AVR = (V)VRC+ (BOD)VRC + (SS)VRC + (TKN)VRC + (TP)VRC General Calculation RC = NR - BR 6500 RC * CG * DS Component Calculation 53700 (V)RC (BOD)VRC = (BOD)RC * (BOD)CG * (BOD)DS (SS)VRC = (SS)RC * (SS)CG * (SS)DS (TKN)VRC = (TKN)RC * (TKN)CG * (TKN)DS (TP)VRC = (TP)RC * (TP)CG * (TP)DS Current New Base Rate Convert to Domestic Rate Components Rates (CVR) Rates (NR) Rates(BR) Change (RC) Gallon (CG) Strength (DS) Change (VRC) Volume $3.540000 $0.655360 $0.593150 $0.062210 N/A N/A $0.062210 = (V)VRC BOD 0.221000 0.159050 0.148700 0.010350 0.00834 200 0.017264 = (BOD)VRC SS 0.298000 0.267750 0.240990 0.026760 0.00834 250 0.055795 = (SS)VRC TKN 0.703000 0.402790 0.372710 0.030080 0.00834 40 0.010035 = (TKN)VRC TP 3.325000 4.187240 3.854100 0.333140 0.00834 10 0.027784 = (TP)VRC AVR = 0.173087 CVR = 3.54 NVR = $3.71 Calculation of the Adjusted Quarterly Service Charge: Formula: C = BMRC + MOR BMRC = MRC / B MRC = DC + CC Calculation of the Demand and Customer Change: Formula: DC = (EN - EB) * DR CC = CN - CB Annual Meter Quarterly Meter Adjusted Proposed Demand Ratio Demand Customer Rate Change Rate Change Current Meter New Meter New Meter (DR) Change (DC) Change (CC) (MRC) (BMRC) Rate (MOR) Rate (C) Rate 3/4" = 1.0 3.37 (2.40) 0.97 0.24 40.11 40.35 40.35 1" = 2.5 8.43 (2.40) 6.03 1.51 70.68 72.19 72.19 1-1/2" = 5.0 16.85 (2.40) 14.45 3.61 121.64 125.25 125.25 2" = 8.0 26.96 (2.40) 24.56 6.14 181.79 187.93 187.93 3" = 15.0 50.55 (2.40) 48.15 12.04 324.47 336.51 336.50 4" = 25.0 84.25 (2.40) 81.85 20.46 527.30 547.76 547.80 6" = 50.0 168.50 (2.40) 166.10 41.53 1,033.88 1,075.41 1,075.40 8" = 80.0 269.60 (2.40) 267.20 66.80 1,642.37 1,709.17 1,709.20 Page 3  Schedule 4 Verona Sewer Utility MMSD Adjustment Clause - Description Sheet Projected 2019 DESCRIPTION OF THE ADJUSTED DOMESTIC STRENGTH VOLUME CHARGE: Formula: NVR = AVR + CVR AVR = (V)VRC+ (BOD)VRC + (SS)VRC + (TKN)VRC + (TP)VRC RC = NR - BR VRC = RC * CG * DS Where: NVR = Calculated new domestic strength utility volume rate per 1,000 gallons AVR = Calculated domestic strength volume rate adjustment to the current utility domestic strength volume rate CVR = Current utility domestic strength volume rate per 1,000 gallons (V)VRC = Adjustment to domestic volume rate per 1,000 gallons MMSD new volume rate less MMSD current volume rate (BOD)VRC = Adjustment to domestic BOD rate component per 1,000 gallons MMSD new BOD rate less MMSD current BOD rate multiplied by the domestic strength multiplied by conversion to gallons (SS)VRC = Adjustment to domestic SS rate component per 1,000 gallons MMSD new SS rate less MMSD current SS rate multiplied by the domestic strength multiplied by conversion to gallons (TKN)VRC = Adjustment to domestic TKN rate component per 1,000 gallons MMSD new TKN rate less MMSD current TKN rate multiplied by the domestic strength multiplied by conversion to gallons (TP)VRC = Adjustment to domestic TP rate component per 1,000 gallons MMSD new TP rate less MMSD current TP rate multiplied by the domestic strength multiplied by conversion to gallons RC = New MMSD service rate less current MMSD service rate NR = New MMSD service rate BR = Current MMSD service rate CG = Conversion factor from per pound to per gallon DS = Utility domestic strength by component DESCRIPTION OF ADJUSTED METER CHARGE: Formula: C = BMRC + MOR BMRC = MRC / B MRC = DC + CC DC = (EN - EB) * DR CC = CN - CB Where: C = Adjusted utility meter rate (to nearest one cent) BMRC = Semi-annual utility meter rate change MOR = Current utility meter rate B = Number of annual utility billings (currently 2 times a year) MRC = Change in utility annual service rate per meter DR = Demand ratio per meter size DC = MMSD new equivalent meter service rate less current equivalent meter service rate multiplied by demand ratio CC = MMSD new customer service rate less current customer service rate EN = MMSD new annual equivalent meter service rate EB = MMSD current annual equivalent meter service rate CN = MMSD new annual customer service rate CB = MMSD current annual customer service rate Page 4  Schedule 5 Verona Sewer Utility Quarterly Bill Comparison - Proposed Rates Projected 2019 Quarterly Quarterly Charge Customer Volume (A) (gallons) Meter Present Proposed Inc. / (Dec.) % Small Residential 10,000 5/8" $75.51 $77.48 $1.97 2.6% Average Residential 13,000 5/8" $86.13 $88.62 2.49 2.9% Large Residential 30,000 5/8" $146.31 $151.74 5.43 3.7% Multifamily Residential 114,000 1 1/2" $525.20 $548.54 23.34 4.4% Commercial 27,000 5/8" $135.69 $140.60 4.91 3.6% Commercial 150,000 1" $601.68 $629.15 27.47 4.6% Industrial 1,160,000 4" $4,633.70 $4,854.94 221.24 4.8% Average Industrial 38,000 2" $316.31 $329.03 12.72 4.0% Public Authority 500,000 2" $1,951.79 $2,044.47 92.68 4.7% Public Authority 155,000 4" $1,076.00 $1,123.29 47.29 4.4% (A) numbers above based on TY 2016 Sewer Rate Study Page 5  Schedule 6 Verona Sewer Utility Calculation of Total Revenues Projected 2019 Current Rates Calculated Rates Units (A) Rates Revenues Rates Revenues Enter the Utility's annual billable gallons for the forecast period 345,132 $3.54 $1,221,767 $3.71 $1,281,505 Enter the Utility's annual billable meters for the forecast period 3/4" 4,269 40.11 684,918 40.35 689,059 1" 86 70.68 24,314 72.19 24,832 1-1/2" 49 121.64 23,841 125.25 24,549 2" 62 181.79 45,084 187.93 46,607 3" 23 324.47 29,851 336.51 30,959 4" 10 527.30 21,092 547.76 21,911 6" 5 1,033.88 20,678 1,075.41 21,508 8" 3 1,642.37 19,708 1,709.17 20,510 4,507 $2,091,254 $2,161,440 Increase $ from Current Rates $70,186 Increase % from Current Rates 3.4% (A) - Based on data used in the the 2018 Five Year Forecast Page 6  Schedule 7 Verona Sewer Utility Calculation of Current Year Rates over Prior Year Units Projected 2019 2019 MMSD Charges 2017 MMSD 2019 MMSD charges 2019 Units Using 2019 units 2019 Rates Rates Calculated 2017 Rates Volume (V) 419,750 0.65536 0.59315 $275,087 $248,975 CBOD (BOD) 1,113,250 0.15905 0.1487 177,062 165,540 Suspended Solids (SS) 803,000 0.26775 0.24099 215,003 193,515 Nitrogen (TKN) 182,500 0.40279 0.37271 73,509 68,020 Phosphorus (TP) 24,455 4.18724 3.8541 102,399 94,252 Equivalent Meters (E) Rate 5,945 36.45 33.08 216,695 196,661 Customer (C) Rate 4,475 36.38 38.78 162,801 173,541 Total $1,222,557 $1,140,503 Increase in rates required $82,054