Agenda Packets - 1989/08/28 - Laserfiche WebLink

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Memo To :Mayor and City Council Members From :Ric Minetor, City Engineer/Director of Public Works Date :August 24, 1989 r Subject :Water and Sewer Rate Analysis Don Brager and I met with Robert Tautges of Voto, Tautges, Redpath & Co. and Dan Boxrud of Short, Elliott, Hendrickson, Inc. to discuss an analysis of our current water and sewer rates and rate structure. As we previcusly discussed with Council, the sewer rate may be considered to be more fair if it were correlated to usage. Since it is not possible to meter sewer discharge from each service connection, a method of estimation is needed. Many cities have adopted a sewer rate based on winter quarter water usage. The Council expressed a desire to study this issue and consider the impacts on existing customers. We reported to the Council that our current work load precludes us from doing this study in house, and that it is appropriate to include a review of our water rates and capital improvements at this time as well. Our meeting with Bob Tautges and Dan Boxrud resulted in a determination that the appropriate procedure would be to have SEH prepare the necessary engineering information and to have Voto, Tautges, at al prepare the financial analysis. The attached letters of proposal from these firms detail the services to be performed. SEH's charge would be $12,500 based on their current hourly rates in the current Engineering Agreement. Voto, Tautges, Redpath & Co. Is charge are estimated to be $8,470, with a not to exceed figure of $8,500. I recommend that City Council authorize staff to enter into agreements with Voto, Tautges, Redpath & Co. and with Short, Elliott, Hendrickson, Inc. for a water and sewer rate analysis with a combined total estimated cost of $21,000; with the cost of this study is to be charged to the water and sewer system maintenance accounts.