Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
Approved

Agenda Title:

Consideration of 1st Amendment to the Amended and Restated Service Contract between Little Blue Valley Sewer District (LBVSD) and the City of Independence.
Recommendations:

Staff recommends approval of the amendment
Executive Summary:

The proposed amendment changes the current rate methodology from sewer fees being applied based on a 5-year linear projection to being based on a 5-year rolling average.
Background:

The existing methodology by which Independence’s rates for service are calculated uses a linear projection based on sewer flow data for the last 5 years. Concern has been raised by several members of the District that this projected flow is too volatile due to wet weather and that the projected value is unpredictable and potentially inaccurate. A rate consultant evaluated the methodology and recommended a modification. The suggested new methodology would be based on a 5-year rolling average rather than the linear 5-year projection.

 
This recommendation was presented to and supported by LBVSD’s Mayor’s Advisory Board, Technical Advisory Committee, and Board of Trustees. It was then considered and recommended by the PUAB on September 22, 2020.

This change in methodology does not change the rates paid to the District. It alters the way fees are applied from a 5-year linear projection to a rolling 5-year average. The goal of this change is that sewer fees paid to the District are more consistent and stable as they would be based off of actual averages rather than a projection. 


Fiscal Impact:

Past fiscal impact has varied from year to year with either an increase or decrease. The purpose of this amendment is to lessen the fluctuation between those increases and decreases over the five year average. Overall, the amount paid to the District will remain unchanged. 

Department:          Municipal ServicesContact Person:          Lisa Phelps


REVIEWERS:
DepartmentAction
Water Pollution Control DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:         

ATTACHMENTS:
DescriptionType
1st Amendment to Amended and Restated Service ContractContract
Service Amendment LetterBackup Material
PresentationBackup Material