Report Prepared by: Wally Broughton, Interim Public Works Manager - Operations
Title
SUBJECT: Professional Services Agreement with R3 Consulting Group, Inc., for Solid Waste Collection and Related Services Rate Study
REPORT IN BRIEF
Considers approving an agreement with R3 Consulting Group, Inc., to conduct a Solid Waste Collection and Related Services Rate Study.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a professional services agreement with R3 Consulting Group, Inc., in the amount of $64,860, to prepare a comprehensive solid waste collection and related services rate study; and,
B. Authorizing the City Manager or Assistant City Manager to sign 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 $30,000.00 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 2017-18 Adopted Budget.
DISCUSSION
The City's refuse and related services are accounted for as a self-supporting enterprise fund. Revenue is derived primarily from refuse, recycling, and green waste service charges and must be adequate to fund the City's operating and capital programs. The City last revised its refuse service charges January 2015, with fixed annual increases through December 2019.
The City seeks a rate study and financial plan that addresses how the capital improvement program and operations plan can be financed relative to proposed rates, and how adequate reserves can be achieved.
The study should include a review of existing revenues, operating expenses and non-operating revenues (expenses) to determine if these allocations are generally conforming to standards adopted by...
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