Consent 1.D.
Regular City Council Meeting
- Meeting Date:
- 10/12/2020
- TITLE
- Professional Services Agreement for Water and Wastewater Rate Studies
- PRESENTED BY:
- Jennifer Duray
- Department:
- Public Works
- Division:
- Administration
RECOMMENDATION
Staff recommends the City Council approve the Agreement with Advanced Engineering and Environmental Services, Inc. in the amount of $226,673 for the water and wastewater rate studies.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The Public Works Department regularly undertakes water and wastewater rate studies. This rate study will cover two two-year periods, the first to set rates for fiscal years 2022 and 2023 and the second to set rates for fiscal years 2024 and 2025. A cost of service rate study is needed to review and recommend appropriate rates for System Development Fees, water and wastewater user rates, resale water rates for the County Water District of Billings Heights, and wholesale rates for the Lockwood Water and Sewer District, Phillips 66 Billings Refinery, Exxon Mobil Refinery. In order to comply with state law and meet projected operation and maintenance costs, as well as fund major capital project needs, adjustments are needed for both the system development fees and user rates.
A Request for Proposals (RFP) was mailed to three firms from a list of prequalified firms. Two firms chose not to submit a proposal and one proposal was received from Advanced Engineering and Environmental Services, Inc.(AE2S). AE2S has conducted the previous four water and wastewater rate studies and staff has been pleased with their services. As specified in state law, once the firm was selected, the price was negotiated at a rate that staff determined to be fair and reasonable. In making its determination, staff took into account the estimated value of the services to be rendered, as well as the scope, complexity, and professional nature of the services.
A Request for Proposals (RFP) was mailed to three firms from a list of prequalified firms. Two firms chose not to submit a proposal and one proposal was received from Advanced Engineering and Environmental Services, Inc.(AE2S). AE2S has conducted the previous four water and wastewater rate studies and staff has been pleased with their services. As specified in state law, once the firm was selected, the price was negotiated at a rate that staff determined to be fair and reasonable. In making its determination, staff took into account the estimated value of the services to be rendered, as well as the scope, complexity, and professional nature of the services.
ALTERNATIVES
The City Council may:
- Approve the award of the professional service agreement; or
- Not approve the agreement. If the City does not approve this agreement, it will be unable to adjust these fees without violating State and case law.
FISCAL EFFECTS
The scope of the agreement is divided into two phases of work tasks which will commit funds to be spent in fiscal years 2021 and 2023. The amount of the Phase 1 tasks is $121,558 and this has been budgeted for in the FY 2021 budget in the water and wastewater funds. The amount of Phase 2 work which will commence in FY 2023 is $105,115 for a total agreement amount of $226,673.