Commission to consider final one-year extension for US Water as conversion delays, staffing and project management concerns surface

City staff recommended the commission authorize a final one‑year extension of the US Water agreement for water-plant operation and utility-billing services so the city can complete an ongoing utility billing conversion and the Advanced Metering Infrastructure (AMI) metering project.

Public works said the original contract extension took effect Jan. 1, 2024, after a resolution on Dec. 13, 2023, and included an initial two‑year term with an option for a one‑year renewal. Staff recommended exercising that last one‑year renewal (beginning Jan. 1, 2026) because US Water remains heavily involved in the concurrent utility-billing conversion to Munis and the AMI meter install program. Staff reported about 10% of AMI meters are installed and said US Water has limited increases in its rates (a 2.2% rate increase mentioned by staff).

Commissioners pressed staff at length about why the conversion and related projects have extended beyond earlier timetables. They raised repeated concerns about missed deliverables, turnover in the finance department (including multiple finance directors and a controller on leave), consultant performance and project management. City staff and the city manager said delays resulted from a combination of staffing turnover, acceptance-of-change issues across departments, and scheduling complexities tied to third-party vendors (including staffing cycles at the Tyler software vendor). Staff said the conversion is in a post-go-live phase and that about 1,000 customer accounts had been migrated to Munis so far, with roughly 7,000 remaining to be registered.

Staff noted future options will be presented to the commission later this year: rebid the service, negotiate a new contract, or bring billing functions in-house. The contract values presented at the workshop included $1,180,388.04 for water-plant operation and $932,046.84 for the utility-billing portion (figures as presented by staff during the workshop). Staff said they plan to ask the commission for direction in November to allow time for any rebid or transition planning before the contract expiration in 2026.

Commissioners asked for clearer project responsibility, accelerated corrective action on deliverables, and clarity on staffing and training needs. The city manager said the administration is recruiting additional project-management capacity and will hold departments accountable for missed deliverables; staff said one project-manager hire is imminent and will help coordinate multiple planned capital bids and large projects.

No final renewal vote was taken at the workshop; staff planned to return with a formal extension resolution and seek commission direction later in the fall on whether to rebid, renegotiate or bring services in-house.