CC - Agendas - City Council - REGULAR - 10/23/2012

Home

Agenda Item: Approval of a professional services agreement with Red Oak Consulting for Development of Impact Fees, Infrastructure Improvement Plan and Associated Documents, and Analysis and Development of Utility Rates, in an amount not to exceed $289,694.00 This new contract with Red Oak Consulting will provide the City Council and community with a thorough review of costs associated with providing public services. An early scope element will evaluate existing fees and proposed projects to determine whether to move forward with any/all fees. At this checkpoint, the City Council will make a decision as to which fees will continue to be assessed, with the actual amounts to be determined through following detailed analyses consistent and in accordance with the requirements of the legislation, including prescribed public information/participation meetings. During recent City Council discussion a question was raised regarding whether as a charter city Prescott must necessarily comply with the impact fee legislation. The City Attorneys Office has advised that when a subject is of statewide concern and the Legislature has acted, the fact that Prescott is a charter city does not empower it to ignore the legislative action. The legislation regarding development of impact fees is clearly of statewide concern, therefore the City is required to comply with it. Water and Wastewater Utility Rates Following completion of the 2006 Utilities Rate Study adjustments necessary to fund ongoing major systems rehabilitation, maintenance, and operations became effective in three increments (July 2008, January 2009, January 2010). The 2006 study was followed by the "Water & Wastewater Rates — 2010 Update" prepared internally, after which further adjustments were adopted (effective February 2011, January 2012, January 2013). Red Oak will consider these rate analyses in preparing the update included in this professional services agreement, fully considering the City's highly complex water and wastewater systems, and the operational and capital requirements necessary to provide safe and reliable utilities services. The deliverables will be proposed water and wastewater rates necessary to provide safe and reliable utilities services to the benefit of the health, safety, and welfare of Prescott's residents and other water and wastewater customers. It is expected that various projects identified in the IIP will be funded from both rates and impact fees. The Water and Wastewater Models being concurrently updated via other contracts will identify zones of benefit for all planned capital improvements serving existing and new growth areas. Red Oak will review and validate the service benefit areas for representative allocation of costs/fees based on justifiable percentages to be determined. Procurement of Professional Services On August 16, 2012, the City received five (5) Statements of Qualification for this publicly advertised project. Pursuant to professional services selection procedures, the submittals were subsequently ranked and the three highest rated firms interviewed. 2