HomeMy WebLinkAbout2021-012 Council Resolution CITY OF LINO LAKES
RESOLUTION NO. 21-12
AUTHORIZING PREPARATION OF UTILITY RATE STUDY
WHEREAS,the city has identified the need to ensure adequate funding for the water and sewer
utilities operations, debt service, and capital infrastructure; and
WHEREAS, Baker Tilly has submitted a proposal to provide professional services to assist the
City in conducting a Utility Rate Study; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes:
That Staff is authorized to enter into a professional services agreement with Baker Tilly for the
preparation of a Utility Rate Study for the amount of$17,730.
Adopted by the City Council of the City of Lino Lakes this 22'd day of February, 2021
The motion for the adoption of the foregoing resolution was introduced by Councilmember
Stoesz and was duly seconded by Councilmember Ruhland and upon vote being taken thereon,
the following voted in favor thereof: Stoesz, Ruhland, Cavegn, Lyden, Rafferty
The following voted against same: none
• 4t
Ro Rafferty, Mayor
ATTEST:
Julie lest Bartell, Ci Cle
CITY COUNCIL
AGENDA ITEM 2A
STAFF ORIGINATOR: Hannah Lynch, Finance Director
MEETING DATE: February 22, 2021
TOPIC: Consider Resolution No. 21-12, Authorizing Preparation of
Utility Rate Study
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting council consideration to authorize preparation of a Utility Rate Study.
BACKGROUND
The purpose of the utility rate study is to ensure adequate funding to cover the cost of
operations, current and future bonding, and to maintain adequate cash reserves to continually
update and maintain the capital infrastructure. The last study was performed in 2012 and rates
were last increased in 2015.
Furthermore, in July 2020, the City Council reviewed the Water Treatment Plant Feasibility
Study and directed staff to explore potential funding sources and impacts to user rates. Staff
received eight proposals for the utility rate study and are recommending the authorization of
Baker Tilly to conduct the study.
Baker Tilly performed rate studies for the City in both 2008 and 2012. They have provided a
comprehensive project approach/work plan and have extensive experience with long-term
financial forecasts, cost of service and rate studies. Baker Tilly is proposing to complete the
study by the target date of May 19, 2021 in the amount of$17,730.
RECOMMENDATION
Staff is recommencing acceptance of the proposal and authorization to enter into a Professional
Services Agreement with Baker Tilly.
ATTACHMENTS
1. Resolution 21-12
2. Baker Tilly Proposal