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Council approves $132,915 contract for comprehensive water rate study
Summary
The City Council approved a professional services contract with NBS to conduct a comprehensive water rate study to assess current rates and recommend updates. Staff cited aging infrastructure, new treatment requirements and a blended surface/groundwater supply as drivers for the study.
The Turlock City Council on Jan. 28 authorized a $132,915 professional services contract with NBS Government Finance Group to perform a comprehensive water rate study.
City Water Division staff told the council the study will evaluate rate structure, costs of operating and capital needs, and propose changes that comply with Proposition 218 and cost‑of‑service principles. Director Derek Fisher said the last rate study was done in 2018 and that a new study is necessary because of new regulatory requirements, aging infrastructure and the city’s blended surface‑ and groundwater supply. The contract will be paid from the city’s contract services fund (account referenced in staff materials).
Fisher said the recent introduction of chlorination into the system and other treatment upgrades increased regulatory workload and that the study will help prioritize mains, metering and capital replacements. Staff said the consultant will deliver a rate model that city staff can update as conditions and customer data change and that the work is expected to conclude within roughly seven months of contract approval.
The council approved the contract by unanimous vote. Staff said the study will support balanced rate policies, help maintain reserves and identify funding options for future capital projects.
