In 2007 the City Council approved water and wastewater system development fees and a multi-year program of increases for the resale rate for the County Water District of Billings Heights.  MCA 7-6-1602 requires periodic review and upates of system development fees.  A periodic update is especially importantant given the cost magnitude of capital improvements in the water and wastewater capital improvement programs.  The last phase of the resale rate increases went into effect July 1, 2010 and as a result, there are no further increases scheduled.  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 water resale rates.  A Request for Proposals (RFPs) was mailed to three firms from a list of prequalified firms.  Two of these firms, HDR, Inc. and CDM, Inc., submitted responses.  CDM, Inc. was selected based on having the most relevant experience with both resale rate and system development fee studies.  The study will be completed in time to allow the outcome to be reflected in the FY 2012 budget.

 

The Council may:

1. Approve the contract; or
2. Not approve the contract.  If the City does not perform this study, it will be unable to adjust these fees without violating state and case law. 

 

Sufficient funds to pay the contract amount were budgeted in the FY 2011 water and wastewater O&M accounts.