To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Nichol Bussey, Business Solutions and Support Manager
Title
Follow-up on Rates and Fees Study RFP
Town Council Agenda Date: NA
Body
________________________________________________________________________________
Executive Summary
The purpose of this memo is to request approval of the attached services agreement with Stantec Consulting Services, Inc. to provide professional services to accomplish the 2025 Rates and Fees Study for 2026-2030.
The scope for this study is to investigate both rates and fees for the Department’s four enterprise funds. The work product for this effort will be a study that revisits proposed rates and fees for the years 2026 through 2030. Based on the scope of work developed jointly by Castle Rock Water and Stantec, the not-to-exceed cost for preparing this study will be $60,000.
Castle Rock Water submitted a Request for Proposal to Bidnet for the 2025 Rates and Fees Study in October 2024. Five companies responded with proposals and three of the respondents were selected for interviews. After interviews, Stantec was selected as the preferred vendor based on value and experience.
Castle Rock Water used Stantec Consulting Services, Inc. for the annual study last year and staff was pleased with the quality of Stantec’s models and their work. Consistency in this service is important, and we use Stantec’s modeling software. The schedule for the completion of the study is December 31, 2025.
Major services and items to be accomplished include:
Task 1: Review Customer Characteristics
Task 2: Review SDF, Financial and Cost of Service Models
Task 3: Review Rate Design Models
Task 4: Review Presentation Materials and Study Reports
Budget
There is adequate budget appropriated for this project in 2025. This project cost is split 25% to the Water Fund, 25% to the Water Resources Fund, 25% to the Wastewater Fund and 25% to the Stormwater Fund:
210-4221-442-3090, Technical Services (25%) $15,000
211-4321-443-3090, Technical Services (25%) $15,000
212-4421-444-3090, Technical Services (25%) $15,000
213-4521-445-3090, Technical Services (25%) $15,000
Total (100%) $60,000