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File #: CONS 22-508   
Section: Consent Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 9/20/2022 Final action:
Subject: Adopt Resolutions Authorizing the City Manager to 1) Execute a Professional Services Agreement with Raftelis to Prepare the FY24 and FY25 Water, Wastewater, Recycled Water Rate Studies and Connection Fee Study in an Amount Not-to-Exceed $200,000 and Transfer $10,000 from the Water Fund to Recycled Water Fund, and 2) Appropriate $200,000 from the Utilities Enterprise Funds
Attachments: 1. Attachment I Staff Report, 2. Attachment II Resolution - PSA with Raftelis, 3. Attachment III Resolution - Appropriation of Funds
DATE: September 20, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT

Title
Adopt Resolutions Authorizing the City Manager to 1) Execute a Professional Services Agreement with Raftelis to Prepare the FY24 and FY25 Water, Wastewater, Recycled Water Rate Studies and Connection Fee Study in an Amount Not-to-Exceed $200,000 and Transfer $10,000 from the Water Fund to Recycled Water Fund, and 2) Appropriate $200,000 from the Utilities Enterprise Funds

End
RECOMMENDATION
Recommendation
That Council adopts two resolutions:

1. Authorizing the City Manager to execute a professional service agreement (PSA) with Raftelis, in a form to be approved by the City Attorney, to prepare the FY24 and FY25 water, wastewater, recycled water (Utilities) rate study and connection fee study in an amount not-to-exceed $200,000, and transfer $10,000 from the Water System Operating Fund to the Recycled Water Operating Fund (Attachment II); and

2. Appropriating $95,000 in the Water System Operating Fund, $95,000 in the Wastewater Operating Fund, and $10,000 in the Recycled Water Operating Fund for a total of $200,000 for this project (Attachment III)...End

SUMMARY

The purpose of utility rate studies is to recommend rate structures that will fully recover operating costs and maintenance of the utilities system infrastructure, maintain adequate utilities enterprise fund balances, and comply with all applicable laws and regulations, including Proposition 218 and Proposition 26. Proposition 218 requires that property-based fees not exceed the cost of providing service, and Proposition 26 allows Council to approve fees imposed as a condition of property development. The City reviews and prepares utility rate studies every two years. Connection fees are reviewed periodically as new infrastructure is constructed and future capital improvements are needed to serve new development. The purpose of connection fee studies is ...

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