Title
Discussion of issues relating to entering into an agreement with NewGen Strategies and Solutions to conduct a water and wastewater rate study.
Body
Summary:
The City is requesting authorization to enter into an agreement for a water and wastewater rate study with NewGen Solutions and Strategies through the HGACBuy Cooperative Purchasing Program. The intent of the study is for the company to independently assess and evaluate the City’s existing water and sewer rates using financial and consumption information and provide recommendations for water and sewer rates for all customer classes for the next five years. The objective of the study is to adequately fund water and sewer utility operations, capital costs, and debt service while minimizing rates to the greatest degree possible.
NewGen Solutions and Strategies has extensive professional experience in providing financial, managerial and economic consulting services to public sector utilities. Members of the company’s team have assisted an extensive list of clients in conducting wholesale and/or retail water, wastewater, storm water, solid waste, electricity and natural gas cost of service and rate design studies.
Attached are the following:
1) Proposal
2) Contract with HGAC
The proposal includes a multi-year pricing option with the proposed rates going into effect in fiscal year 2025 and then re-evaluated for fiscal year 2026 and 2027. The proposed cost for the initial study for fiscal year 2025 is $37,500 and then $23,000 each year for the annual review for fiscal years 2026 and 2027. This includes the cost of one annual on-site meeting.
This agreement is set for approval during the regular City Council Meeting following this workshop.
Fiscal/Budgetary Impact:
$40,000 was budgeted in the FY 2023-2024 Budget for this purpose (400-500-42400, Consultant Fees).
Recommended action
Discussion only during workshop.