HomeMy WebLinkAbout#17 Cost of Service Study for Water and Sewer Utilities Approve TKDA Proposal AGENDA ITEM (3)
MAYOR & COUNCIL COMMUNICATION
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DATE: December 15, 2015
REGULAR
ITEM #17
AGENDA ITEM: Cost of Service Study for Water and Sanitary Sewer Utilities – Approve
Authorization for TKDA.
SUBMITTED BY: Jack Griffin, City Engineer
THROUGH: Clark Schroeder, Interim City Administrator
REVIEWED BY: Cathy Bendel, Finance Director Mike Bouthilet, Public Works
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .........................................................................................City Staff
- Report/Presentation………………………………………… .........................City Staff
- Questions from Council to Staff ............................................. Mayor Facilitates
- Public Input, if Appropriate………………………………….Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
POLICY RECOMMENDER: Administration/Finance/Engineering.
FISCAL IMPACT: $13,900 to be funded 50% through the Water Enterprise Fund and 50% through the
Sanitary Sewer Enterprise Fund.
SUMMARY AND ACTION REQUESTED:
The City Council is respectfully requested to approve the Cost of Service Study for the Water and
Sanitary Sewer Utilities Task Order with TDKA. The recommended motion for the action is as follows:
“Move to approve the Cost of Service Study for the Water and Sanitary Sewer Utilities Task Order with TDKA in an amount not to exceed $13,900.” LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
City staff has contacted and met with Bernie Bullert from TKDA, an experienced utility manager, to prepare a Cost of Service Study for the water and sanitary sewer utilities. In particular, the goal of the
City Council Meeting [Regular Agenda Item 17]
December 15, 2015
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study will be to better understand the cost of service for each utility so that a system of rates and charges
can be confidently reviewed and developed to best meet the Utility’s funding requirements, addressing
conservation, and that are fair and equitable. The work includes a review of the City’s water and sanitary sewer operational costs based on best practices, capital costs, and depreciation costs projected for 2016-
2025. The report findings may then be used by the City Finance Department for the purpose of projecting
cash flows, bonding needs and evaluating user rates and charges.
RECOMMENDATION:
Staff is recommending that the City Council approve the Cost of Service Study for the Water and
Sanitary Sewer Utilities Task Order with TDKA. The recommended motion for the action is as follows: “Move to approve the Cost of Service Study for the Water and Sanitary Sewer Utilities Task Order with
TDKA in an amount not to exceed $13,900.” ATTACHMENT(S):
1. None.