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Hastings Utility Board tentatively awards water and sewer cost-of-service study to JK Energy Consulting
Summary
Staff informally awarded a contract to JK Energy Consulting for a water and sewer cost-of-service study; kickoff is set for the 17th and presentations are tentatively scheduled for the Utility Board (June 11) and city council (June 22). The study will examine tiered water rates tied to the Little Blue NRD conservation plan.
The Hastings Utility Board said staff has informally awarded a contract to JK Energy Consulting to perform a water and sewer cost-of-service study, a step intended to guide possible changes including tiered water rates designed to support the city’s conservation plan.
Kyle (speaker 6) told the board staff issued the request for proposals to two vendors and both responded; JK Energy Consulting was selected based on a substantially lower price. “We have informally awarded the contract to JK Energy Consulting. He was substantially lower in price,” Kyle said. Kyle said the study’s kickoff meeting is scheduled for Tuesday the 17th and that John from JK will appear at the board’s and council’s presentations.
The study will explicitly look at tiered water rates as part of Hastings’ conservation strategy with the Little Blue Natural Resources District, Kyle said, and staff will analyze whether rate classes are subsidizing one another and examine maintenance costs and pipe lengths when modeling rate alternatives.
Kyle described a tentative public schedule: a presentation to the Utility Board on June 11 and to the city council on June 22. He cautioned there are nuances to the study schedule and that some technical elements remain to be finalized as the consultant begins work.
Next steps: JK Energy Consulting will conduct the kickoff data-gathering meeting, staff will collect required data for the consultant, and the board and council will receive findings and proposed rate designs later in the study timeline.
