PUBLIC WORKS AND UTILITIES COMMITTEE
RESOLVED, that Resolution 06-0637, passed September 11, 2006, authorizing Contract #20273 with Advanced Engineering and Environmental Services, Inc., be amended to allow additional professional engineering services in year 2008 for updating the water utility cost of service and rate design study, an increase of $7,500 and a new total of $40,954, payable from the Water Fund 510, Agency 500, Organization 1915, Object 5310.
STATEMENT OF PURPOSE: This resolution amends Resolution 06-0637 which authorized the original agreement (C#20273) with Advanced Engineering and Environmental Services, Inc. (AE2S), for a cost of service and rate design study of the city’s water utility. Change #2 will authorize an update to the study not to exceed $7,500, payable from the water fund.
The water utility cost of service and rate design study was prepared by AE2S in association with city staff. The results of the study and rate adjustment recommendations were presented to the Duluth City Council in June 2007. No rate adjustments have been implemented since the 2007 presentation.
The city is interested in reevaluating the water utility rates and revenue sufficiency for the utility for the next five years. AE2S will work with city staff to update the 2007 study to include the most current utility information and revise rate adjustment recommendations through 2012.
The city originally requested proposals for this study in August of 2006. The purchasing office received six proposals by the August 25, 2006, closing date. An internal committee evaluated all proposals and eventually selected Advanced Engineering and Environmental Services, Inc., from Grand Forks, North Dakota.