Powerpoint Water and Wastewater Rate Study

1. ADMINISTRATION
Presented by:
Phil Laney
Assistant City Manager
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WATER AND WASTEWATER RATE STUDY AND
METERING SYSTEM ASSESSMENT
ITEM # 5
FEBRUARY 13, 2023

2. SUMMARY
 Update to water & sewer rate study
 Previous rate study completed in 2018 & Council
adopted increases over 3 years
 Last rate increase in March 2021
 Study to analyze future operations, projects &
maintenance & customer fee rates to cover expenses
 Water meter assessment included
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3. BACKGROUND
 In 2018 Willdan Financial completed rate study for City
 Recommended rate increases each year for 10 years
 October 2018 - Council adopted rate increases for 3
years, beginning March 2019
 No increases since March 2021
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Water Wastewater SAWS Passthrough
March 2019 5% 5% 5%
March 2020 (delayed until
July 2020)
5% 5% 5%
March 2021 5% 5% 5%

4. BACKGROUND – UTILITY FUND
 Utility Fund is self-sustaining fund
 Relies on user rates to pay for its operations,
debt service and infrastructure improvements
 Updated rate study needed to recommend
rates for the next 10 years
 Reliable and efficient utility system
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5. BACKGROUND – UTILITY FUND
 Capital improvement projects to be included
 4 x 2 to be completed in 2030
 Replacement of water and sewer lines within the
Broadway Improvement Project
 Maintenance of water towers
 Water meter replacement
 Conversion of cubic meters to gallon meters
 Operational expenses
 Debt service 5

6. 2023 RATE STUDY AND METER ASSESSMENT
 Comparison of existing rates to surrounding cities
 Update rate study from 2018 with current operating
costs & revenues
 Provide forecast for 10 years with rate structure to
meet all operations & infrastructure improvements
 Include alternate rate structures for consideration
 Preliminary recommendations within 90 days of
receiving all data from staff
 Total of 4 in-person meetings
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7. 2023 RATE STUDY AND METER ASSESSMENT
 2018 rate study did not include a meter assessment
 2023 study to analyze water infrastructure & clean
water delivery system
 Compare existing infrastructure with current systems
to identify gaps
 Operational capabilities, efficiencies, cost savings
and revenue
 Determine funding eligibility for potential
infrastructure improvements
 Infrastructure Investment and Jobs Act (IIJA)
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8. POLICY ANALYSIS
 3 vendors informally solicited for proposals
 As required per the Texas Government Code, 2
Historically Underutilized Businesses (HUB) were
contacted for purchases between $3,000 to
$50,000
 Blackbridge Consulting sent proposal
 AMD consulting on the HUB list did not
respond
 Willdan Financial Services submitted proposal
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9. POLICY ANALYSIS
 Of two proposals received Willdan Financial the
best value
 Years of experience
 Expertise in water and wastewater
 Prior positive experience with City in 2018
 References
 Proposal costs
 Willdan $29,500 & Blackbridge $16,000
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10. FISCAL IMPACT
 Fiscal impact is $29,500 to Willdan Financial
Services
 Funds available in FY 2023 Utility Fund Budget
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