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Saugatuck workshop reviews plan for new water and sewer rate study
Summary
City staff told the council a new water and sewer rate study is needed because current rates and 1996-era connection fees are outdated; consultant Andy Campbell (now with Bendzinski & Co.) proposed redoing the water study for the same $10,500 fee and noted additional costs are likely for the sewer portion.
At a Oct. 9 workshop, the Saugatuck City Council reviewed the need for a new water and sewer rate study after staff said current rates and connection fees date to 1996 and no longer reflect system needs.
City staff reminded the council that Baker Tilly conducted a $10,500 water rate study in June 2023 as part of a Michigan EGLE-mandated water asset management plan. Rate consultant Andy Campbell, who has since joined Bendzinski & Co., proposed that Bendzinski conduct a new water rate study for the same $10,500 fee, offered a discount for prior work and cautioned that additional costs would likely be required to include sewer rate analysis. An engagement letter from Bendzinski & Co. was presented to the council.
Why it matters: Michigan's EGLE requires communities to maintain water asset management planning; city staff said updated rates and connection fees are needed to fund future infrastructure work, and a capital improvement charge was recommended previously to finance upgrades.
Council did not record a formal vote on adopting a new study at the workshop; staff presented the consultant proposal and engagement letter and indicated the sewer component would add cost. The council packet listed the prior Baker Tilly engagement amount as $10,500 and noted that connection fees currently in force date to 1996.
City Manager Cummins and staff indicated they will proceed with finalizing scope, cost estimates and a recommended schedule for council consideration at a future meeting.
Next steps: staff will return with a detailed scope and cost estimate that includes the sewer study costs before any contract is approved.
