The Prescott Valley Town Council on June 26 approved a three-year contract extension with Jacobs (formerly CH2M/OMI) for utility operations, maintenance and additional projects, with total contract sections amounting to about $11.3 million.

Council members approved the extension after a staff presentation describing the contract's structure and planned projects. Town staff said the contract includes a 3% increase to base fees, raised the reimbursable repair cap for water and wastewater from $500,000 to $600,000, and lists additional services projects that together total approximately $3.7 million in near-term water and wastewater work.

Town staff told the council Jacobs has provided operations services in Prescott Valley since 1993 under earlier company names and that the proposed three-year term was selected to allow more frequent review and flexibility. Staff summarized major planned projects: a $1.2 million water program of work and $2.5 million in wastewater projects (including replacement of aging aeration equipment and rehabilitation of a clarifier). Staff also highlighted a recent system-wide flushing effort that removed settled sediment from roughly 400 miles of distribution pipe using a no-discharge technology that conserved about 8.7 million gallons of water.

During discussion council members thanked operations staff and asked about contract length; staff said the three-year term reflects current procurement strategy and allows opportunities to reassess as conditions change. No members opposed proceeding.

Council action: a motion to approve the three-year contract extension for utilities operations, maintenance and management with Jacobs in the amount of $11,296,376 was made and seconded; the motion passed unanimously.

Background: Jacobs began under prior corporate names in the town in 1993. The contract is structured in three sections: base fees (labor, chemicals, fuel), reimbursable pass-through items, and additional-services projects that the town and contractor scope annually. The contract presentation noted that pass-throughs cover items Jacobs pays and invoices the town without markup, and that the town increased the repair allowance to better cover aging infrastructure.