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THE CITY OF 12 .__ ' -'- CITY COUNCIL AGENDA REPORT ~L~~S~4NTONo February 6, 2007 Public Works Department TITLE: APPROVE CONSULTING SERVICES CONTRACT WITH HDR ENGINEERING, INC. IN THE AMOUNT OF $54,947 TO PREPARE THE CITY'S LOCAL WASTEWATER (SEWER) USER RATE MODEL, ANALYSIS AND RECOMMENDATIONS SUMMARY The City Council is responsible for setting local sewer rates. Periodically, the Council is asked to review rates and rate structures to determine if they are consistent with expenses. As a result of recent increases in operating and maintaining the City's sewer operations and infrastructure, staff has determined that it is appropriate to commence a sewer rate review process which will provide information needed to determine if rate changes are needed. This report provides a general summary of the sewer system, previous rate studies, and sewer rates and recommends the Council approve a contract with HDR Engineers, Inc., to conduct a sewer rate analysis. RECOMMENDATION Staff recommends that the City Council take the following actions at the meeting of February 6, 2007: 1. Approve and authorize the City Manager to execute the attached "Contract for Consultant Services' with HDR Engineers, Inc. to develop a local wastewater (sewer) user rate model, perform the sewer rate analysis and recommendation for changes to the City's Local Sewer User Rate for an amount of $54,947 with an additional contingency amount of $8,000 fora not to exceed expenditure of $62,947. 2. Authorize an appropriation of $20,000 from the Sewer Enterprise Operating and Maintenance Fund balance to Account No. 303-538-395-4383 to be used to fund the total cost of the project. The additional funding required is currently available in this account. FINANCIAL STATEMENT The results of the study will be presented to the City Council and may impact sewer rates.