TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Lou Vargas, Utilities Director
Nicholle Petroff, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Professional Services Agreement with Black & Veatch Management Consulting, LLC in the Budgeted Amount of $68,085 for the 2023 Wastewater Rate Study (Public Works Director Lee).
ADOPT RESOLUTION NO. 22-0147
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 22-0147 approving a Professional Services Agreement with Black & Veatch for the 2023 Wastewater Rate Study in the Amount of $68,085.
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FISCAL IMPLICATIONS:
The Wastewater Master Plan Update project is programmed in the Wastewater fund as part of the approved Capital Improvement Plan (CIP).The amount being requested for a Professional Services Agreement for this Wastewater Rate Study is $68,085. Sufficient funding exists for this agreement as part of the project's current budget appropriation. There are no additional fiscal implications at this time.
BACKGROUND:
The City's Wastewater Fund supports the operation and maintenance of the City's 86 miles of wastewater pipelines and six pump stations. Rates for these services have not been increased since 2009. As such, the Five Year CIP identifies a revenue shortfall in upcoming years because of planned capital spending to address aging infrastructure and expense inflation.
To address future capital improvement and maintenance costs, a Wastewater Rate Study needs to be performed. Such study will propose balancing affordability of expenditures while adequately investing in long-term infrastructure and ensuring reliability and sustainability. The objectives of the Wastewater Rate Study are to:
* Separate consumption costs from infrastructure and maintenance costs.
* Evaluate and provide ade...
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