Title
Resolution to Approve Professional Services Agreement with Black & Veatch Ltd. for the Water & Wastewater System Capital Cost Recovery Study (RFP No. 885, $62,800.00)
Memorandum
Attached for your review and approval, please find a resolution approving a professional services agreement for consulting services in the amount of $62,800.00 with Black & Veatch Ltd. of Michigan (Black & Veatch) for the Water & Wastewater System Capital Cost Recovery Study. The resolution also provides a ten percent project contingency in the amount of $6,280.00.
On June 3, 2013, City Council adopted an amendment to Chapter 12 (ORD-13-06) which amended the calculation of the water and sanitary improvement charges for properties connecting to City water mains or sanitary sewers during the period July 1, 2013, through June 30, 2015. The code amendment for this two-year period was intended to be for an interim basis to allow time for the City to retain a consultant to review the City's fees and charges for connections to the water and sanitary sewer systems and make recommendations for revision.
The proposed agreement between Black & Veatch and the City of Ann Arbor includes all the required professional services to perform this study. Funding for this project is available in the approved FY 2015 water fund and sanitary fund operations and maintenance budgets.
The reason for the two-year period code amendment stemmed from concern over the improvement charges which were then being charged under Chapter 12 for new connections to the water and sanitary sewer systems. Although the principle underlying the calculation of those charges, to make sure appropriate costs are recovered from new customers so that current rate payers are not improperly burdened, appears to be sound, the formula in effect at that time raised concerns about the dollar amounts calculated for these improvement charges.
When making future changes to improvement charges and connection fees, it is...
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