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Council hears water/sewer rate-study proposal and materials bid recommendation totaling about $343,800
Summary
City staff and a consultant presented a scope for a water and sewer rate study and recommended purchasing materials now to hold prices; the consultant recommended accepting a $226,536 materials quote and presented a conditional award approach pending FY26 budget approval.
A consultant for Cuba City outlined a proposed water and sewer rate study and recommended a conditional materials purchase to lock in current pricing for an upcoming waterline project.
The presenter told the council the scope would go beyond a routine rate check to review several years of revenue and expenditures, list near-term projects and run scenarios so the council could forecast possible user-rate adjustments and financing options such as lease-purchase arrangements or state revolving funds. The packet lists a fee of $11,800 for the preliminary engineering work and task order material.
On bids for the waterline materials, staff said four vendors were solicited and two submitted responsive proposals. The consultant summarized an estimated material need around $247,000 and recommended accepting a materials quote of about $226,536.10 to purchase parts for the base bid and alternates in order to protect the city from future price increases. “We would accept the $226,000 quote,” the presenter said, characterizing it as competitive pricing that would allow the city to have materials on hand regardless of construction timing.
Council members raised cash‑flow and budgeting concerns, noting that awarding full construction work now could leave the contractor or city financially strained in the near term. One council member said approving construction work should be contingent on next year’s budget: staff described a plan to make a conditional award pending FY26 budget approval so materials could be purchased this fiscal year while construction could be confirmed later.
Staff also described bid alternates and recommended not awarding a particular alternate that the city’s crews could complete in-house to reduce contractor costs; a combined tabulation figure presented during discussion was $343,838.51 if the base bid and alternates were all accepted. The presenter said the bids require contractors to hold prices for a period (typically around 90 days). The council agreed to consider the recommendation and to revisit award language once budget details for FY26 are finalized.
The council did not take a final construction award vote at the meeting; staff will return language for a conditional award and confirm how the purchase and any construction work would be staged against the FY26 budget.
