Title
Consider approving Resolution No. 2025-140 authorizing the first amendment to the Professional Services Agreement with NewGen Strategies and Solutions, LLC, for the Water and Wastewater Retail Rate Study, in the amount of $19,957; and take appropriate action.
Body
REQUESTER:
Public Works Department
BACKGROUND:
In June of 2024, the City of Farmers Branch and NewGen Strategies and Solutions, LLC, entered into a professional services agreement (PSA) for the City's Water and Wastewater Revenue Sufficiency and Rate Study in the amount of $47,500. The purpose of this agreement was to get a comprehensive financial analysis that ensured the City's utility rates were generating sufficient revenue to meet its operational and capital needs while maintaining an affordable rate for residents.
On August 19, 2025, the Public Works Department presented an amended ordinance to lock in the City's water and wastewater rates for the next five years using data collected by NewGen.
With the implementation of these increased rates, the scope of services of this PSA needs to be amended and will increase the cost by $19,957 to cover additional services related to this study.
DISCUSSION:
The amendment to the PSA's original scope will include customer data evaluation, financial data analysis, rate design scenario analysis, and two City Council workshops or public meetings with NewGen Strategies and Solutions, LLC.
FISCAL IMPACT:
The total cost of the first amendment to the PSA for the Water and Wastewater Retail Rate Study is $67,457. Funds are available in the FY-25 Utilities Operating budget.
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2025-140 as presented.
2. I move to approve Resolution No. 2025-140 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Resolution No. 2025-140
2. Exhibit A: Amended Professional Services Agreement
3. Exhibit B: Original Professional Services Agreeme...
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