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CITY COUNCIL <br />AGENDA ITEM 2A <br /> <br /> <br />STAFF ORIGINATOR: Hannah Lynch, Finance Director <br /> <br />MEETING DATE: February 22, 2021 <br /> <br />TOPIC: Consider Resolution No. 21-12, Authorizing Preparation of <br />Utility Rate Study <br /> <br />VOTE REQUIRED: 3/5 <br /> <br /> <br />INTRODUCTION <br /> <br />Staff is requesting council consideration to authorize preparation of a Utility Rate Study. <br /> <br />BACKGROUND <br /> <br />The purpose of the utility rate study is to ensure adequate funding to cover the cost of <br />operations, current and future bonding, and to maintain adequate cash reserves to continually <br />update and maintain the capital infrastructure. The last study was performed in 2012 and rates <br />were last increased in 2015. <br /> <br />Furthermore, in July 2020, the City Council reviewed the Water Treatment Plant Feasibility <br />Study and directed staff to explore potential funding sources and impacts to user rates. Staff <br />received eight proposals for the utility rate study and are recommending the authorization of <br />Baker Tilly to conduct the study. <br /> <br />Baker Tilly performed rate studies for the City in both 2008 and 2012. They have provided a <br />comprehensive project approach/work plan and have extensive experience with long-term <br />financial forecasts, cost of service and rate studies. Baker Tilly is proposing to complete the <br />study by the target date of May 19, 2021 in the amount of $17,730. <br /> <br />RECOMMENDATION <br /> <br />Staff is recommencing acceptance of the proposal and authorization to enter into a Professional <br />Services Agreement with Baker Tilly. <br /> <br />ATTACHMENTS <br /> <br />1. Resolution 21-12 <br />2. Baker Tilly Proposal