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CITY COUNCIL AGENDA ITEM NO. 30

Meeting Date: September 12, 2006

Subject/Title: Adopt a Resolution approving and authorizing the City Manager to execute a Professional Services Agreement with Bartle Wells Associates, for a Water and Wastewater Rate and User Fee Study, in an amount of $50,330, plus a 10% contingency, for a total amount of $55,363.

Prepared by: Public Works: P. Eldredge

Submitted by: Public Works: B. Grewal

RECOMMENDATION
Adopt a Resolution approving and authorizing the City Manager to execute a Professional Services Agreement with Bartle Wells Associates, for a Water and Wastewater Rate and User Fee Study, in an amount not to exceed $50,330, plus a 10% contingency, for a total amount of $55,363.

PREVIOUS ACTION
On November 26, 2006, City Council approved Ordinance No. 729, adopting the new tiered water rate structure and water rates for Fiscal Years 2002/03 to 2006/07.

On November 26, 2006, City Council approved Ordinance No. 730, adopting and implementing new monthly user charges for sanitary sewer service for Fiscal Years 2002/03 to 2007/08.

BACKGROUND
The City of Brentwood Water Division Enterprise Fund and Sanitary Sewer Enterprise Fund must recover their cost of service to ensure that there is no need for funding from the City’s General Fund. It does this by examining operations costs, material and supply costs, debt services, normal additions and replacements of the existing system, administrative costs and capital improvement programs then distributing these costs appropriately among the customers.
As these costs can fluctuate over time, it is prudent to have our rates reviewed.

As the rates adopted by Ordinance No. 729 and Ordinance No. 730 are effective through Fiscal Years 2006/07 and 2007/08 respectively, it is timely to initiate new rate studies for water and wastewater. The initiation of this rate study does not imply a rate increase will be necessary, it is prudent and customary for agencies providing this service to review their rates every 2 to 5 years to ensure sufficient revenues are collected to operate these enterprises, debt service ratios are being adequately met and the level of service provided mirrors the rates being charged.

Staff has utilized the services of a rate consultant in the past to develop a tiered rate structure that would ensure everyone pays their fare share for the service they receive, that costs are equitably spread among the users and to help reduce peak water usage.

Staff prepared a Request for Proposal and sent it to eight consultants in our area. A total of three proposals were received:

Bartle Wells Associates $50,330
Black & Veatch $64,950
Camp Dresser & McKee $77,100

After reviewing the proposals submitted, their experience and contacting their client references, it is staff’s recommendation for City Council to award the professional services contract to Bartle Wells Associates.

As provided in Exhibit “A” of the agreement, Bartle Wells Associates has extensive experience working with cities, irrigation districts, water districts and sanitary districts throughout the state. They specialize in rate and fee studies, financing plans and project financing. In-depth knowledge of all three of these areas enables them to provide well-informed and comprehensive financing solutions. Although staff has not used Bartle Wells Associates in the past, they were highly recommended by all of their client references.

FISCAL IMPACT
The funds for these studies have been budgeted in the General Budget 2006/07. It will be split equally between water and wastewater enterprise funds.

Attachments:
Resolution
Agreement

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH BARTLE WELLS ASSOCIATES, FOR A COMPREHENSIVE WATER AND WASTEWATER RATE AND USER FEE STUDY, IN AN AMOUNT OF $50,330, PLUS A 10% CONTINGENCY, FOR A TOTAL AMOUNT OF $55,363.

WHEREAS, on November 26, 2006, City Council approved Ordinance No. 729, adopting the new tiered water rate structure and water rates for Fiscal Years 2002/03 to 2006/07; and

WHEREAS, on November 26, 2006, City Council approved Ordinance No. 730, adopting and implementing new monthly user charges for sanitary sewer service for Fiscal Years 2002/03 to 2007/08; and

WHEREAS, rate studies are critical to ensure that proper funds are collected to operate the various City of Brentwood enterprises; and

WHEREAS, as the rates adopted by Ordinance No. 729 and Ordinance No. 730 are effective through Fiscal Years 2006/07 and 2007/08 respectively, it is timely to initiate new rate studies for water and wastewater; and

WHEREAS, City staff prepared a request for proposal for a Water and Wastewater Rate and User Fee Study and sent it to eight consultants; and

WHEREAS, after reviewing the proposals submitted, experience and contacting their client references, it is staff’s recommendation for City Council to award the professional services contract to Bartle Wells Associates.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby authorize the City Manager to execute a Professional Services Agreement with Bartle Wells Associates, for a Comprehensive Water and Wastewater Rate and User Fee Study, in an amount of $50,330, plus a 10% contingency, for a total amount of $55,363.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 12th day of September 2006 by the following vote:
 

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