HomeMy WebLinkAboutResolution No. 2022-31KENAI
CITY OF KENAI
RESOLUTION NO. 2022-31
Sponsored by: Administration
A RESOLUTION AUTHORIZING AN AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES
TO CONDUCT A RATE STUDY FOR THE WATER, SEWER WASTEWATER UTILITY.
WHEREAS, the City of Kenai released a formal Request for Proposals on March 9, 2020 to provide for
Professional Engineering Services as a term agreement to cover Capital Projects for our Water, Sewer,
and Wastewater facilities and infrastructure; and,
WHEREAS, HDL Engineering was the successful firm provided with a formal Notice of Award on May
15, 2020 to provide for these services; and,
WHEREAS, the FY20 annual budget provided funding to complete Master Planning and Rate Study
services which were specifically identified within the Request for Proposals; and,
WHEREAS, functional assessments were completed at each of the water, sewer, and wastewater
facilities with the final deliverables received in September 2021; and,
WHEREAS, the information provided by the functional assessments was used in the updating of the
City's current Capital Improvements Plan, and this Rate Study is the next step in assisting the Utility in
determining how best to fund improvements; and,
WHEREAS, sufficient funding resides within the Water & Sewer Capital Project Fund and Wastewater
Facility Capital Project Fund under activity codes 243 and 246 respectively where these costs will be
evenly shared.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. Council authorizes the City Manager to execute a professional services agreement to HDL
Engineering Consultants for completion of this work and to provide a Purchase Order to HDL Engineering
in the amount of $69,120.
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 18TH�DAY, 2022. � �c
rian Gabriel Sr., Mayor
EST:
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A �QL
Michelle" , MMr, City Clerk
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KENAI
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941907.283.7535 I www.6nai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Director of Public Works
DATE: May 9, 2022
SUBJECT: Resolution No. 2022-31 - Water Sewer Rate Study
The purpose of this memo is to request Council's support in the Public Works Department
conducting a Rate Study for the Water Sewer Utility. The last Rate Study was completed in 2010
by CH2M Hill. These studies are commonly conducted approximately every ten years to make
sure the utility continues to have the ability to effectively maintain operations.
The Public Works Department started this process shortly after entering into a term agreement
with HDL Engineering to provide professional engineering services for three years with an optional
two, one year extensions available, starting March 2020. HDL Engineering with assistance from
departmental staff began going through all of the Utility's assets and infrastructure. In September
2021 the final functional assessments were received and were immediately put to use in
development of the Capital Plan and in applying for specific grant opportunities.
The Rate Study will take into account the user fees — residential, commercial, industrial;
connection fees — base on size of service needed; permitting fees, maintenance fees, inspection
fees, utility locate fees, and anticipated required Capital Improvements, etc. Consideration for
the costs neighboring communities are charging for similar services will be included. This study
shall encompass FY23-FY32's ten year period.
This work is an integral function for the utility to operate as self-sustaining as possible, and given
the current inflationary environment coupled with the recently completed and newly identified
capital improvements, now is a very appropriate time to complete this work.
To date the costs associated with this effort include $39,827 for the WWTP Functional
Assessment, $82,175 for the Water/Sewer Functional Assessment, and the proposed agreement
for the Rate Study within this Resolution for $69,120. These combined total $191,122 toward the
Master Plan and Rate Study effort. Council can also expect a presentation later this fall from the
Engineering Team to present the Rate Study findings. Council support is respectfully requested.