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Committee lifts fiscal-year cap on utilities consulting contract to allow remaining work on water and wastewater financing
Summary
The Finance Committee approved removing the annual fiscal-year spending cap from the Financial Consulting Solutions (FCS) Group contract so remaining available funds under the four-year agreement can be used for ongoing water and wastewater rate and financing work; the contract itself remains within its total four-year ceiling.
The Finance Committee on March 10 approved an amendment that removes the fiscal-year spending cap in the professional services contract (item 21-0522) with Financial Consulting Solutions Group Inc (FCS). The change does not increase the contract—s total four-year ceiling (roughly $600,000) but allows unspent funds from earlier contract years to be used in the contract—s final year so consultants can complete critical rate and financing work for the city—s utilities.
Director Dozier and Finance Director Andy Osterholm explained why flexibility is needed: FCS provides annual long-range forecasts and rotating cost-of-service studies for the water, wastewater and environmental services utilities; the group also supports analysis for low-interest loan programs and rating-agency reviews. Osterholm cited two active financings that require consultant analysis: a Clean Water State Revolving Fund opportunity that could finance up to $151 million at very low interest, and a Water Trust Board award administered by the New Mexico Finance Authority worth $17 million (half grant, half loan). The city must demonstrate the ability to repay principal on these low-rate loans, and FCS—s analyses are part of that work.
Osterholm said the contract was initially structured with year-by-year caps and that roughly $200,000 remained available under the contract—s total cap. He said the consultant expects to need a substantial portion of that remaining balance to complete scope items this fiscal year, including cost-of-service updates and support for rating-agency reviews. The contract expires June 30, 2025; staff said the utilities division will prepare an RFP for future professional services as required by procurement rules.
Councilors asked whether the city would re-procure long-term consulting services; Dozier said procurement rules limit professional-service extensions to four years and the utilities group is preparing a new RFP. Councilor Cassatt and others supported clearing the year-cap amendment so the consultant could carry out the needed work before the contract expires. A roll-call vote recorded unanimous approval.
Vote: Councilor Cassatt, yes; Councilor Lindell, yes; Councilor Faulkner, yes; Councilor Lee Garcia, yes; Chair Ameri Worth, yes. Motion passed.
