CITY COUNCIL STAFF REPORT
MEETING DATE: JUNE 17, 2015
PREPARED BY: Karl Bjarke, Public Works Director/Public Works Department
APPROVED BY: City Manager
TITLE
CONSULTANT AGREEMENT WITH NBS GOVERNMENT FINANCE GROUP FOR WATER AND WASTEWATER COMPREHENSIVE RATE STUDY
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution approving and authorizing the City Manager to execute a Consultant Agreement for Water and Wastewater Comprehensive Rate Study with NBS Government Finance Group (NBS) for not to exceed amount of $74,290 to assess and evaluate the current rates and establish a new rate structure.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Protecting the environment
Maintaining fiscal responsibility
2015 Focus Areas
Impacts of Drought Conditions
REPORT NARRATIVE:
As California enters the fourth year of an unprecedented drought, water purveyors across the state are assessing the severity of their own water supplies and strategizing how best to meet the needs of their water customers now and into the future. Morgan Hill is no exception and in January 2015, the Council adopted the goal of having Morgan Hill continue to be a leader in responding to drought conditions and ensuring that the City's water enterprise remains reliable and balances environmental and financial sustainability.
On April 1, 2015, the City Council received a "Comprehensive Water Report" describing the City's water enterprise system, rate structure, water consumption, conservation, recycled water, and drought response activities. On May 20, 2015, a Council Water Workshop was conducted to further discuss the water utility system and drought effects, recycled water, conservation, and drought response. As illustrated in the report and at the workshop, the following conclusions were supported resulting from the drought conditions.
* Moving forward, the cost of producing water will be greater than previously anticipated
* Morgan...
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