TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
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Agreement with Raftelis Financial Consultants, Inc. for preparing the Water and Sewer Rate Study
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2. SUMMARY
Agreement with Raftelis Financial Consultants, Inc. to update the Water and Sewer Rate Study and provide recommendation on rates adjustment.
3. RECOMMENDED ACTION
recommendation
Approve the agreement with Raftelis Financial Consultants, Inc. in the amount of $89,718 for the Water and Sewer Rate Study; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. FISCAL IMPACT
The expense for this agreement is $89,718 and will be funded through Water (600):
600-5802-55101- Professional/Technical Service
5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology
6. DISCUSSION AND BACKGROUND
In 2022, the City conducted a comprehensive rate study for the Water and Sewer (Sanitation) Funds to ensure the adequacy of revenue for maintenance and operations. Utilizing the public noticing process, the City Council established water and sewer rates through January 1, 2027. Due to continually escalating wholesale water supply costs, the effects of the groundwater treatment systems, ongoing water conservation impacts, and escalating capital improvement and maintenance costs, the City needs to update its financial analysis of the City's Water and Sewer Funds to ensure a balance between revenues and expenditures, while maintaining reasonable fund reserves for emergency purposes. These analyses will show if a rate adjustment is needed for a five-year period, to be commenced as early as January 2028. Pursuant to Proposition 218, any proposed increase cannot exceed the City's estimated reasonable cost of providing water and sewer service.
As a part of the study, the consultant is to provide the City with financial, economic, and general consulting services...
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