2017 2:00:00 PM

Monday, June 12, 2017 2:00 PM
Council Chambers, Legislative Bldg., 745 4th St. , Sparks, NV

General Business: 9.13

Title: Consideration and possible approval of a contract for a Sewer, Storm Drain, and Effluent Systems Rate Study Analysis, with Farr West Engineering (AC5373), in the amount of $125,300.

Petitioner/Presenter: John A Martini, P.E., Community Services Director/Andrew Hummel, P.E., Utility Manager

Recommendation: Staff recommends Council approve the contract.

Financial Impact: The proposal amount is $125,300. Budget appropriations of $150,000 was approved in the FY17 CIP in the following programs: $75,000 in 17-6595 Sewer Rate Study, $50,000 in 17-6694 Storm Drains Rate Study, and $25,000 in 17-6792 Effluent Rate Study.

Total Costs: $125,300.00

Fund: Sanitary Sewer Operations Fund Account: 603235
Program: Rate Study 5 Year Update (17-6595)
Amount: $75,000.00 Budget Status: Budget Exists

Fund: Effluent Operations Fund Account: 603445
Program: Rate Study 5 Year Update (17-6792)
Amount: $25,000.00 Budget Status: Budget Exists

Fund: Storm Drains Operations Fund Account: 603235
Program: Rate Study 5 Year Update (17-6694)
Amount: $25,300.00 Budget Status: Budget Exists

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

Consideration and possible approval of a contract for a Sewer, Storm Drain, and Effluent Systems Rate Study Analysis, with Farr West Engineering, in the amount of $125,300. The Rate Study Analysis will evaluate and recommend changes to the City’s Utility rates, policies, and ordinances based on economic changes since the last utility rates update in 2012. Staff recommends approval.

Background:

A Rate Study, covering sanitary sewer, storm drain, and effluent systems, was completed in 2008 and subsequently updated in 2012. The economic climate has changed since 2012, affecting residential and commercial development as well as existing users. Completion of the 2016 City of Sparks Sanitary Sewer Master Plan identified significant Capital Investments required within the sanitary sewer infrastructure. These changes have prompted a detailed analysis of the Utility Rates, Policy, and Code.

Farr West Engineering was selected by staff to perform the Rate Study due to their experience with similar studies and their knowledge of regional issues relating to the City of Sparks. The scope of services is attached for Council’s review.

Analysis:

The proposal provided by Farr West Engineering provides the services needed to evaluate and recommend changes for the City’s Utility rates, policies, and ordinances. The Rate Study Proposal fee is $125,300 and is scheduled to be completed within nine months.

Alternatives:

1. City Council could approve the contract as outlined by Staff.

2. City Council could reject the contract and provide direction to the City Manager.

Recommended Motion:

I move to approve a contract for a Sewer, Storm Drain, and Effluent Systems Rate Study Analysis, with Farr West Engineering, in the amount of $125,300.

Attached Files:

Farr West Rate Study Proposal.pdf

Farr West Contract-Rate Study Analysis Contract.pdf

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