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Contract Renewal - Utility Rate Consulting Services
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INFORMATION CONTACT:
Amy McCaskill, UC Water - Business Operations, Director, 704-283-3508
ACTION REQUESTED:
Authorize the County Manager to 1) negotiate and execute an agreement substantially consistent with this agenda item, 2) exercise any renewal or extension term options set forth in the Agreement, and 3) terminate the Agreement if deemed in the best interest of the County, each in the County Manager's discretion.
PRIOR BOARD ACTIONS:
1) August 3, 2020, Regular Meeting, Agenda Item #9 - Board approved amendment to add services.
2) June 20, 2022, Regular Meeting, Agenda Item #22-388 - Board approved two-year renewal
BACKGROUND:
Stantec Consulting Services, Inc. (Stantec) has served as Union County Public Works’ (UCPW) utility rate consultant since 2017. An essential element of the services they provide is proprietary [rate modeling] software called FAMS (Financial Analysis and Management System). This tool is used to model various financial scenarios and project future rate increases that are necessary to generate sufficient revenue to meet current and future operational and capital needs of the water and wastewater system.
The Union County Water Business Operations Department has utilized the contractual services of Stantec Consulting Service, Inc. for rate modeling and additional as needed rate consulting services since January, 2017. The contractor has been effective and efficient in meeting our service needs, and we are requesting to continue this service for an additional two years.
FINANCIAL IMPACT:
The anticipated annual cost for this service is $71,201. Since this contract contains a two-year term, a total of $142,402 is estimated to be spent. Funding is available in the adopted FY24 budget appropriation with future expenditures subject to annual BOCC budget appropriation.