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Item 10CCity of Southlake, Texas MEMORANDUM August 5, 2003 To: Billy Campbell, City Manager From: Pedram Farahnak, P.E., Director of Public Works, ext. 2308 Subject: Approve a professional services agreement with Palmer Price, Inc. for implementation of a Drainage Utility System for Southlake. Action Requested: Consider approving a professional services agreement with Palmer Price, Inc. for implementation of a Drainage Utility System for Southlake. Background Information: City of Southlake is in the process of preparation of a Drainage Master Plan with focus on Council policy for correction of drainage related issues city wide, cost of necessary improvements and preparation of documents to secure EPA/TCEQ permit to comply with Phase 11 Storm Water Regulations mandated by the Federal Clean Water Act. During the council retreat on June 19 and June 20, 2003, a presentation was made to the City Council on creation of a Drainage Utility System (DUS) as a possible funding source for future drainage improvements. Council indicated that favorable consideration will be given to this matter if staff brings this matter forward. After a careful background check of the proposed consultant's work history, staff has received a proposal from Palmer Price, Inc. to prepare and implement steps toward creation of a Drainage Utility System (DUS). Below is a list of the tasks required for performance by the consultant for successful completion of this project: • Legal Authority Research • Storm Water Utility Cost of Service • 5 Year Cash Flow Model • Storm Water Utility Fee Database • Storm Water Utility Rate Design • Benchmark Survey of Rates • Storm Water Utility Documentation • Community Awareness Plan • Public Hearings • Utility Billing System Interfaces • Initial Storm Water Billing Page 1 of 2 Financial Considerations: Funds for this project in the amount of $91,500 is available from 2002 -2003 CIP (localized drainage projects) which has a remaining balance of $400,000. Citizen Input / Board Review: Results of the study will be shared with the citizens of Southlake and hearings will be held to receive public comments. Legal Review: The Standard Form of Agreement has been reviewed by the City attorney. Alternatives: The Council will consider the results of the study and may determine a more suitable funding source. Supporting Documents: Copies of the Professional Services Agreement will be available at the Council Meeting. Staff Recommendation: That the City Council approve a professional services agreement with Palmer Price, Inc. for implementation of a Drainage Utility System for Southlake. Staff Contact: Pedram Farahnak, P.E., Director of Public Works, ext. 2308 Charlie Thomas, P.E., City Engineer, ext. 2175 CC: Sharen Elam, CPA, Finance Director Page 2 of 2