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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 16, 2019 <br />TITLE: <br />APPROVE AN AMENDMENT TO THE <br />AGREEMENT WITH STANTEC IN THE <br />AMOUNT OF $45,620 TO CONDUCT A <br />STORMWATER FUNDING FEASIBILITY <br />STUDY, FOR A TOTAL AGREEMENT <br />AMOUNT NOT TO EXCEED $230,620 <br />(NONGENERAL FUND) <br />(STRATEGIC PLAN NO. 6, 1H) <br />CITY MAWAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 11 Reading <br />❑ Ordinance on 2n' Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to amend the Scope of Work for the agreement <br />with Stantec which commenced on July 3, 2018 and is scheduled to terminate on July 2, 2021 with <br />provision for two 1-year extensions, in order to conduct a stormwater funding feasibility study and <br />increase the compensation by an amount not to exceed $45,620, for a total agreement amount not <br />to exceed $230,620 in the Water Admin/Engineering fund, subject to non -substantive changes <br />approved by the City Manager and City Attorney. <br />DISCUSSION <br />On July 3, 2018, at the conclusion of a competitive bid process, the City entered into an agreement <br />with Stantec to perform a cost of service study for the water and sewer enterprises in an amount <br />not to exceed $158,000. Their primary tasks were to create a financial plan for each enterprise, <br />perform a cost -of -service analysis, and provide a recommended five-year rate structure for City <br />Council consideration. On February 5, 2019, the City Council approved an amendment to expand <br />the initial scope to include a capacity charge study, in an amount not to exceed $27,000, to evaluate <br />charges assessed on new developments. <br />Throughout the course of the studies, a need to assess the feasibility of providing stormwater <br />funding to improve, expand, and maintain the City's flood protection and stormwater conveyance <br />systems was identified. Currently the only funding available for these type of improvements exists <br />via the General Fund and through Drainage Area Impact Fees, which are charges assessed on <br />new developments for the construction of storm drainage systems. Drainage Area Impact funds <br />take many years to build up and are insufficient to meet the City's storm drain improvement needs, <br />as identified by the recent Stormwater Master Plan. <br />25C-1 <br />