TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Utilities
SUBJECT:
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Award of Professional Services Agreement for a Comprehensive Water and Sewer Rate Study with Burns & McDonnell Engineering Company, Inc. for the Not-to-Exceed Amount of $179,421.00
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BACKGROUND:
The last comprehensive water and sewer rate study the City completed was in 2022/2023. The goal of the study was to develop compensatory water and sewer rates capable of addressing the City’s water and sewer operations, capital improvements, and debt service by a steady increase formula with no large increases in rates from year to year. In 2023, a multi-year funding plan was developed, and the Mayor and City Council approved rate increases for 2023, 2024, 2025, and 2026 with a recommendation to re-evaluate the City’s financial position in four years.
The Public Service Committee will review this matter.
CONCLUSION:
A proposal for professional services was requested from Burns & McDonnell Engineering Company, Inc. Burns & McDonnell Engineering Company, Inc. was selected based on a qualifications-based selection process for the initial comprehensive study completed in 2015/2016. They also completed the updates to the study in 2022/2023 and have been involved in the rate evaluation associated with the Alternative Water Source Program. Based on their knowledge of the City’s utility system and water and sewer rate model they are best suited to complete the current update. The Professional Services Agreement for the project, for an amount not to exceed $179,421.00, represents the cost of developing a multi-year financial plan for each utility (water and sanitary sewer), preparing rate scenarios, reviewing and making recommendations on connection fees, supporting an affordability analysis, and providing ongoing financial support planning for the Alternative Water Source Program. It is anticipated that rate scenarios will be presented to the City Council in late summer...
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