Consideration and Approval of Contract:  Ratification of expenditures with Stantec Consulting Services, Inc. for additional services in the amount of $128,134 and approval of the First Amendment for a total contract amount of $340,000.
 

1. Approve the First Amendment to the contract with Stantec Consulting Services, Inc. in the amount of $128,134; and
2. Authorize the City Manager to execute the necessary documents.

On April 14, 2023, the City of Flagstaff and Stantec Consulting Services, Inc. entered into a consulting contract wherein Contractor provided professional services regarding a water, reclaimed water, and wastewater cost-of-service, rates and fee study. The Contractor satisfactorily performed the consulting services and the City has compensated Contractor for those services. On June 11, 2024, the Contractor sought authorization for additional services and the City granted such authorization by signature of the City Manager dated July 29, 2023. The Parties wish to formally ratify the expenditure incurred through the performance of those additional services by requesting approval of the First Amendment.

Project Name: Water, Reclaimed Water, and Wastewater Cost of Service, Rates and Fees Study
Cost: The initial Contract was for $211,866 for the original Scope of Work. This amendment ratifies payment of $128,134 for the Additional Services. The total contract price for the complete performance of work under the Initial Agreement and this First Amendment shall be $340,000.
Account Number Budgeted: 
FY Budgeted Amount: $300,000 in water fund 202-08-370-3179-0-4206; $25,000 in wastewater fund 203-08-375-3410-0-4206; $15,000 in reclaimed water fund 204-08-380-3416-0-4206
Grant Funded: Not grant funded
Funding Source: Revenues from the water, wastewater, and reclaimed water fund

City Council approved the contract for professional services with Stantec Consulting Services, Inc. at the March 7, 2023 Council meeting.

Purchasing staff published a Request for Proposals RFP solicitation for Water, Reclaimed Water, and Wastewater Cost-of-Service, Rates, and Fees Study services in the Arizona Daily Sun on July 3rd, 2022, and July 10th, 2022, and posted the solicitation to the City of Flagstaff’s PlanetBids Website on June 23rd, 2022.  On August 3rd, 2022, the City received five (5) Proposals from Consultant Firms.  A seven-member Selection Committee consisting of City staff from different key knowledge departments reviewed and evaluated the Proposals. Based upon the numerical scoring of the Proposals, the Selection Committee identified Stantec as the top proposing Consultant.

Approve and ratify the First Amendment to the Water, Reclaimed Water, and Wastewater Cost of Services, Rates and Fees study with Stantec Consulting Services, Inc. in the amount of $128,134.

• High Performing Governance: Serve the public by providing high-quality customer service; Enhance the organization’s fiscal stability & increase efficiency & effectiveness
• Safe & Healthy Community: Provide public safety services with resources, staff & training responsive to the community’s needs
• Sustainable, Innovative Infrastructure: Deliver outstanding services to residents through a healthy, well maintained infrastructure system; Utilize existing long-range plan(s) that identify the community’s future infrastructure needs & all associated costs
• Environmental Stewardship: Strengthen Flagstaff’s resilience to climate change impacts on built, natural, economic, health, & social system

• Policy WR.2.2. Maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater, and reclaimed water services.
• Policy WR.3.8. Implement a water management program that creates a linkage between new growth and a minimum 100-year water supply.
• Policy WR.3.9. Identify adequate funding sources to pay for new resources for a long-term renewable water supply.
• Policy WR.4.1. Use the Regional Plan as a guide for the Utilities Integrated Master Plan to better plan for the necessary infrastructure sizing and location to accommodate planned growth and resource management.
• Policy WR.4.2. Maintain, at the City level, a financially stable utility to provide reliable, high quality utility services.
• Policy WR.4.3. Development requiring public utility services will be located within the Urban Growth Boundary.

• Community Resilience: CR-1 Ensure all mitigation actions improve Flagstaff’s ability to adapt to the future; CR-2 Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
• Sustainable consumption and waste management: MM-2 Encourage sustainable consumption.

• Create 1.4: Explore implementing reduced fees and waivers to incentivize the development of affordable housing.
• Create 5.1: Hire an independent consultant to review City codes, processes, and fees to determine whether modifications, reductions, or eliminations would facilitate cost-saving housing development strategies.

• Water, Reclaimed Water, and Wastewater Cost of Service, Rates and Fees study, and the First Amendment, support the Business Values and Strategic Objectives of the Water Services' Strategic Plan 2025.