8E Consent 2007 1203 - Laserfiche WebLink

Home

CITY OF SAN LEANDRO STAFF REPORT DATE: December 3, 2007 TO: John Jermanis, City Manager FROM: Michael Bakaldin, Public Works Director M~ BY: Dean Wilson, WPC Manager SUBJECT PROJECT/PROJECT DESCRIPTION: APPROVED AND FORWARDED TO CITY COUNCIL Jo . Jermanis C~ anager RESOLUTION APPROVING CONSULTING SERVICES AGREEMENT WITH MUNICIPAL FINANCIAL SERVICES RELATING TO A SEWER RATE STUDY SUMMARY AND RECOMMENDATION Staff recommends that the City Council approve a consulting services agreement with Municipal Financial Services to provide a rate study for the development of updated sanitary sewer service user charges and connection fees. BACKGROUND Between 1982 and 2003, the City conducted biennial Wastewater User Charge and Connection Fee studies. The purpose of these studies was to determine annual revenue requirements to fund the operation of the City's wastewater system. Additionally, the studies developed equitable user charges that adequately funded future replacement of the treatment facility and sanitary sewer collection system. The last study established rates and fees through FY 2006. In FY 2007 and 2008, rates and fees were adjusted by the consumer price index as operations and maintenance costs were adequately funded and the reserve fund balance was adequate. The purpose of this study is to: • Review and recommend rates to ensure that they will fully fund operations, maintenance and capital costs; • Lstablish target reserve and replacement fund balances; • Create a computer rate model for City use capable of being updated with actual costs for annual review of sewer rates. Municipal Financial Services (MFS) was selected as the consultant following staff review and evaluation of nine proposals received in response to a Request for Proposals (RFP). The proposal and subsequent presentation by MFS demonstrated a clear understanding of the study requirements and an effective method of achieving study goals in a timely manner.