Title
Consider and take action on a resolution authorizing of a Professional Services Agreement with Freese and Nichols, Inc. (FNI) to perform a Water and Wastewater Master Plan and Capital Recovery Fee Update (WT/WW 1704) in an amount not to exceed $645,000 (Director of Engineering)
Background:
If approved, this resolution will authorize a Professional Services Agreement with FNI to update the water and wastewater master plans and determine the maximum capital recovery fees associated with the proposed capital improvements being master planned. The detailed scope of work is provided in the Exhibit A of the attached professional services agreement.
The City is currently experiencing growth and over the next several years anticipates continued residential growth along with commercial and industrial growth. To more accurately identify system needs and recommend future permanent improvements to the water and wastewater systems, updates to the water and wastewater master plans are necessary. In addition, State law allows for cities to collect Capital Recovery Fees (CRFs) as an exaction if the public benefit from the exaction is roughly proportional to the burden imposed on the public by allowing the proposed land use (i.e., each use or development must pay its fair share or its approximate equivalent). Section 395.052 of the Texas Local Government Code requires that the land use assumptions and capital improvements plan (water and wastewater Master Plan Update) for which CRFs are imposed shall be reviewed, evaluated, and updated a minimum of every five (5) years. Originally programmed to start in early 2023, staff is recommending an early start so capital recovery fees will be reflective of current construction costs.
The FY2022-2026 CIP reflects both projects with at total budget of $700,000 in FY2023. Staff requests beginning the studies early to capture the current cost of CIP projects in light of inflammatory pressures as we update the CRF plan. Approval of this item requires a future budget amendment to add both WT1704 Water Master Plan Update and WW1704 Wastewater Master Plan Update to the FY2022 capital budget.
FNI proposes to perform these services for the not to exceed amount of $645,000 (split $245,270 from available Water CRF Funds and $399,730 from available Wastewater CRF Funds). FNI anticipates having the DRAFT CRF Update Report available to the public within 230 days of the Notice to Proceed (NTP) being issued and the DRAFT Water and Wastewater Master Plan Update Report to the City within 280 days of the NTP. Assuming the NTP is issued for August 15, 2022, the DRAFT CRF Update Report would be available to the public on approximately April 2, 2023, and the DRAFT Master Plans submitted on approximately May 22, 2023.
Attachments:
1) Data Sheet
2) Proposed Resolution
3) Exhibit A - Professional Services Agreement
4) CIP Program Sheets
5) Vendor Report Card
CONTRACT ORIGINATION: The Professional Services Agreement has been reviewed and approved as to form by the City Attorney.
FUNDING
{X} Approval of this item requires a future budget amendment to add both WT1704 Water Master Plan Update and WW1704 Wastewater Master Plan Update to the FY2022 capital budget.
Funding in the amount of $645,000 is available from Water CRFs, Fund 1040, with $245,270 in expenses charged to WT1704-CONSULT-MSTR PLAN-CRF WATER and $399,730 from Wastewater CRFs, Fund 1045, with expenses charged to WW1704-CONSULT-MSTR PLAN-CRF WW
STRATEGIC PLANNING
{ X } Addresses Strategic Planning Critical Success Factor #1 - Develop & Maintain our Infrastructure and Strategic Planning Success Factor #2 - Financially Sustainable