Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Approval of a Professional Services Agreement with Hildebrand Consulting, LLC, for a Sewer and Water Rate Study in the Amount not to Exceed $83,250
REPORT IN BRIEF
Considers approving a Professional Services Agreement with Hildebrand Consulting, LLC, to conduct a Sewer and Water Rate Study.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Professional Services Agreement with Hildebrand Consulting, LLC, in the amount not to exceed $83,250, to prepare a comprehensive sewer and water rate study; and,
B. Authorizing the Finance Officer to make the necessary budget adjustments; and,
C. Authorizing the City Manager or Deputy City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve the agreement, as recommended by staff; or
2. Deny; or
3. Refer to staff for reconsideration of specific items.
AUTHORITY
Charter of the City of Merced, Section 200, et seq. and Section 3.04.120 of the Merced Municipal Code.
Services with an estimated value greater than $37,000.00 are made by written contract in accordance with Merced Municipal Code, Title 3 - Revenue and Finance, Chapter 3.04.
CITY COUNCIL PRIORITIES
As provided for in the 2023/24 Adopted Budget.
DISCUSSION
The City's water utility is accounted for as self-supporting enterprise fund, with 100% of its supply sourced from pumped groundwater. Revenue is derived primarily from water service charges and must be adequate to fund the City's operating and capital programs. The City last revised its water service charges in 2017, with set rates through 2021. The revisions maintained an existing yearly inflation index increase beyond the year 2021 [per Merced Municipal Code sections 18.36.045 & 050]. The City recently transitioned all customers to metered billing.
Residential sewer rates are a flat rate regardless of house size and occupancy. With the installation of water meters on all customer class...
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