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City outlines water-distribution RFP timeline and defends $3 online payment fee to shore up utility funds
Summary
City Administrator said four firms responded to the water-distribution RFP and recommended interviews to select a firm for a February 2027 bid; council also discussed a recently added $3 online payment convenience fee, which staff said reduces annual transaction costs and helps cover unanticipated water-fund deficits.
City staff told the council that four engineering teams responded to the water-distribution system improvement RFP and recommended interviewing all four firms over the next two weeks, with a goal of a formal selection at the July 28 meeting and bidding in early 2027.
City Administrator (speaker 5) described the water project as the top capital priority to improve pressure in the southeast area; he recommended interviews and a rapid selection so plans can be drafted and the project bid in early 2027.
Separately, the council discussed a $3 ACH/online payment convenience fee that the city implemented to reduce roughly $18,000–$20,000 a year in transaction fees. The administrator said the water fund had operated with substantial deficits as recently as 2022 and staff weighed the fee as an alternative to raising rates or switching costly software. “That’s more practical use of those dollars than covering convenience fees,” the mayor said in reference to equipment needs such as pump replacements.
Councilors noted alternatives (bank online bill pay, in-person drop box) and the challenge of changing proprietary software tied to payment processors. Staff said they will continue to evaluate options while the fee remains in place.
