===== PDF PAGE 104 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO INFRASTRUCTURE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: _Lf__.__--F-_ . __ _ Resolution No. 26-R-0036 - Contract Award - Stantec - 2026 Water and Sewer Rate Study in an Amount Not to COMMITTEE AGENDA DATE: May 7, 2026 Exceed $128,344.00 COUNCIL AGENDA DATE: May 18, 2026 STAFF REVIEW: Mehul T. Patel, P.E., CFM., Director of Public Works SIGNATURE_________ _ APPROVED BY CITY ADMINISTRATOR: Viviana Ramirez SIGNATURE _________ _ ITEM SUMMARY: The City of West Chicago is responsible for delivering safe potable drinking water and treatment of sewage to its residents, business, and institutions. The Department of Public Works operates and maintains the water distribution network as well as the sanitary collection system. The assets under management which comprise these two systems include the following: • ~147 miles of water mains (including ~8 miles of raw watermain) • 9.0 MGD centralized lime softening Water Treatment Plant (WTP - Commissioned in 2005) • Two (2) Elevated water towers, Hawthorne (500,000 gallons) & Fremont (250,000 gallons) • Two (2) booster pump stations, each includes one above ground storage tank (500,000 gallons) • 4 shallow Silurian Dolomite Wells (average depth of ~325 feet) • 5 deep Sandstone Wells (average depth of ~1,390 feet) • ~2,000 Fire Hydrants • ~2,500 Valves • ~7,300 Water meters • ~800 Lead Service Lines • ~106 miles of sanitary sewers • 7.4 MGD Regional Wastewater Treatment Plant (WWTP- Commissioned in 1983) • 15 lift stations, including two (2) stormwater lift stations • ~1,500 Sanitary Manholes • ~6,500 Sanitary services During the FY 2026 budget workshop meetings in October 2025, there was a strong desire from the City Council to perform a water and sewer rate study. On February 19, 2026, staff issued a Request for Qualifications (RFQ), by invitation, to nine firms seeking qualifications for the 2026 Water and Sewer Rate Study. Some of the invited firms elected to submit a joint proposal, combining their respective expertise to provide a more comprehensive scope of services. Six RFQs were submitted to the City and subsequently evaluated on March 19, 2026. The evaluation criteria included proposed staff capabilities, proposed technical approach, workload capacity and availability, experience on similar projects, and recommendations of past clients and references. Six personnel from the City staff from multiple departments evaluated the RFQs. The following are the results of the evaluation: Firms Average Weighted Total Overall Rank Stantec/EEI 84.72 Raftelis/CMT 83.00 2 ===== PDF PAGE 105 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO Baker Tilly/CB BEL 80.55 3 Baxter & Woodman 79.75 4 Trotter and Associates 78.30 5 Fehr Graham 77.82 6 Stantec/Engineering Enterprises Inc (EEi) combination was determined to be the Most Qualified Firm (MQF) to provide the service for the project. Stantec will be leading the charge on the financial components of the study while EEi will focus on the engineering aspect of the study. The combined scope of work will include Project initiation and management, benchmarking and enterprise fund separation, capital improvement plan and life cycle analysis, revenue requirements, cost of service, evaluating alternative water and sewer rate structures, reports and council presentations. The initial cost proposal submitted by Stantec was for $150,340 which has been reduced to $128,344.00 after successful negotiations. This item was not specifically budgeted for in FY 2026; however, the water and sewer funds can absorb this cost by reducing scope of upcoming projects. ACTIONS PROPOSED: Approve Resolution No. 26-R-0036 authorizing the Mayor to execute an Agreement with Stantec of Washington DC for the 2026 Water and Sewer Rate Study in the amount not to exceed $128,344.00 COMMITTEE RECOMMENDATION: ===== PDF PAGE 106 ===== [Extraction: embedded PDF text] RESOLUTION NO. 26-R-0036 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH STANTEC OF WASHINGTON DC, FOR THE 2026 WATER AND SEWER RATE STUDY IN THE AMOUNT NOT TO EXCEED $128,344.00 BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor is hereby authorized to execute an Agreement with Stantec of Washington DC for the 2026 Water and Sewer Rate Study in the amount not to exceed $128,344.00, in substantially the form attached hereto and incorporated herein as Exhibit "A". APPROVED this 18th day of May 2026. AYES: NAYES: ABSTAIN: ABSENT: Mayor Daniel Bovey ATTEST: Executive Office Manager, Valeria Biggerstaff ===== PDF PAGE 107 ===== [Extraction: embedded PDF text] () Stantec March 25, 2026 Mr. Mehul Patel, P.E., CFM Public Works Director City of West Chicago 475 Main Street West Chicago, Illinois 60185 Re: Level of Effort and Fee Proposal - 2026 Water and Sewer Rate Study Dear Mr. Patel: Stantec and EEi are pleased to present this level of effort and fee proposal to provide a Water and Sewer Rate Study for the City of West Chicago. Based on the scope of services outlined in the attached Exhibit B, we propose completing the study for a lump sum, not-to-exceed fee of $128,344, inclusive of all expenses. The hours and costs by task are summarized below and detailed in a work plan presented in the attached Exhibit A. Hours by Task Task Cost by Task Task 1 Project Initiation and Management 29 $5,981 Task 2 Benchmarking 39 $8,578 Capital Improvement Plan & Life Cycle Task 3 168 $35,962 Analysis Task 4 Revenue Requirements 113 $23,476 Task 5 Cost of Service 75 $17,111 Evaluate Alternative Water and Sewer Rate Task 6 85 $18,122 Structures Task 7 Reports and Council Presentations 72 $17,374 Totals 581 $125,344 Estimated Expenses $3,000 Total Not-To-Exceed Fee $128,344 Our project team can begin work within one week of notice to proceed and will be able to complete the study by October of 2026, consistent with the City's schedule for this engagement. () Stantec 1299 Pe1111sylva11ia Ave NW \/Vashington DC 20004 Phone: 443-538-1175 • E-mail: David.hyder@stantec.com ===== PDF PAGE 108 ===== [Extraction: embedded PDF text] 3 Exhibit A City of West Chicago 2026 Water and Sewer Rate Study Project Work Plan and Cost Estimaie E1timot~d Labor•H ovr~ Ston1ec- rn Project Tasks Total Technical Pro1ed Projecf Analyst Admin Eng~~::ring Engineering GIS Analyst Project Advisor D1tit!'clo1 Manager Consultant Consultant ; J'r,• ilU.k.l Prolect Initiation and Manaaement I 1,1 Prepare initial data request list and detailed critical path schedule. Perform job set up activities. I I Establish communication patterns .. D D 2 3 01 8 .1 ,I '1 1.2 Conduct virtual workshop with City staff to confirm study objectives, identify fiscal objectives, establish communication protocols, discuss approach, establish schedule, provide data request, and discuss existing forecasting methods and models. D 2 0 0 21 2 8 13 1.3 Perform a detailed review of all data as it is received, D 0 !j 6 0 1 2 ~I Task 2 Benchmarking 2,1 Establish list of comparison communities for comprehensive benchmarking and review with City Staff. [Maximum of 10 communities) 0 0 11 0 0 21 3 OJ 6 Conduct benchmarking survey to collect data for cost recovery practices (rates, fees and 2.2 charges), system costs (operating and capital), demographic data and details for each of the comparison community's water and sewer systems. (Maximum of lO communities] 0 3 0 0 4 12 21 2,3 Collate data to provide benchmarking comparison in figures and graphics to allow for ease of 8 12 0 0 :1 21 understanding and communication of results. (Maximum of 10 communities) 0 ol :1 Task 3 Caeital lmerove:ment Plan and Life Cvde Analvsls 3.1 Prepare water facility (tanks, wells, well houses, receiving stations, water main) map and inventory tables with key characteristics and dates. 0 0 0 0 4 12 Bl 24 3.2 Prepare sanitary facility [wasewater treatment facilities, lift stations, sanitary sewer) map and inventory tables with key characteristics and dates. 0 0 0 0 16 28 3.3 Review of water and wastewater facilities as appropriate to complete the inventory tables. :1 10 12 0 0 oj 0 0 :1 :1 3.4 Site visit to water and wastewater facilitieis (1 day only - Best representative sample facilities will be visited, not all facilities) 0 0 0 0 8 16 01 3.5 Compilation and review of annual inflation assumptions for capital improvements 0 D 0 0 1 2 3.6 Review/audit of current capital improvement plan 0 0 0 0 8 12 3.7 Prepare general, concept level cost estimates for routine maintenance and associated 20-year ~I !I ~I maintenance schedule for water facilities (tanks, wells, well houses, receiving stations, water main) to integrate into a Capital Improvement Plan workbook. 0 0 □I 0 0 SI 14 01 22 3,8 Prepare general, concept level cost estimates for routine maintenance and associated 20-year maintenance schedule for sanitary facilities (wastewater treatment facilities, lift stations, sanitary sewers) to integrate into a Capital Improvement Plan workbook_ 0 01 0 0 101 20 01 30 3.9 Review any potential regulation concerns to determine how these regulations could/may 01 impact the City in the next 10 years. 0 0 0 0 0 21 2 4 3.10 Collate Capital Improvement Plan workbook and make any revisions per City staff input at 6 meeting. D 01 0 0 0 2 4 :1 3.11 Meeting with City Staff to review the Capital Improvement Plan workbook and assumptions (Preparation for and attendance) ol 2 2 0 0 41 4 OI 1,2 City of West Chicago - 2026 Water and Sewer Rate Study Scope of Work ===== PDF PAGE 109 ===== [Extraction: embedded PDF text] 5 City of West Chicago 2026 Waler and Sewer Rate Study F'ro}ect Work Plan and Cost Estimate Ejtin,oted labor-Hours Stontec: EEi Project Tasks Total Lead Project Technical ProJect Engineering Projeci Analyst Admin Engineering GIS Analyst Advisor Director Consultant Manager Consultant For~s -I 5-375 SJ75 S225 S1',0 $100 !j262 s, ... $1SJ Task 6 Evaluate Alternative Water and Sewer Rate Sb:ucture, 6, I Use benchmarking results and diagnostic analysis of the current utility rate structures {for all classes, including residential, multi-family and commercial) to identify strengths and weaknesses in terms of but not limited to the following criteria: I 5[ 6 0 0) DI DI 14 j 31 a, Compliance with legal precedent and generally accepted industry practice {national I and local). b. Fair and equitable distribution of costs to customers in proportion to the benefit received and/or demand placed on the system. C, Consistency with community policies and management objectives regarding such things as affordability, conservation, etc. d. Fiscal stability/risk of the utility. e. Ease of administration and understanding to City staff and customers. 6.2 Develop Alternative Water and Sewer Rates: a . Load billing history data into our rate module and create a bill frequency analysis. 0 2 6 0 0 o, 0 b. Conduct a revenue test to confirm accuracy of billing data, D 2 6 0 0 D c, Set up the rate model in conformance with the rate design evaluation in Task 6.1 and the :1 cost allocation results of Tasks 4 & 5. 0 4 12 [) 0 18 d , Run the model and prepare alternative rate structures that reflect the following :1 considerations: 0 12 4 6 0 0 01 :1 :1 Recovery of current and future costs of service Customer class impacts (residential vs. non-residential) Fixed cost recovery and revenue stability Funding requirements for all current long-term liabilities and debt requirements Consistency with industry practice for utility rate making in the region e. Prepare a customer impact analysis to compare the recommended water rates for each class of customer and compare those rates to the existing rates. D 1 2 4 0 Oi D f. Review results with consulting team and adjust as required. 0 I 2 2 0 oi 5 g. Meet with City staff in an interactive work session to review results [Meeting #4]. 7 D 2 2 2 ~10 l 01 ~I Perform adjustments, finalize module/resulting rate design adjustments based upon input h. from City staff. 0 0 2 2 D D 0 0 Task 7 Reports and CouneU Presentations 7.1 Prepare a Draft Report and summary presentation of the initial results and recommendations of I the Study for staff review/comment. 21 ID[ 12 2 21 4 DI 36 7,2 Prepare Final Draft Report based upon edits from City staff, and provide to staff for further review. 41 as needed. 4 6 0 22 7.3 Present the final results of the study to City Council. 0 0 14 61 ~I ~I ~1 :1 ~1 $3,375 $20,625 $26,100 $25,280 $400 $20.436 $26,68D $2.448 City of West Chicago - 2026 Water and Sewer Rate Study Scope of Work ===== PDF PAGE 110 ===== [Extraction: embedded PDF text] 7 site visits to major water and wastewater facilities and meet with City staff to discuss concerns and maintenance objectives. One day of site visits will be conducted at major water and wastewater facilities. Based on information collected, we then propose to develop a minimum of 20-year maintenance and rehabilitation schedule for each of the water and wastewater system facilities to incorporate into a capital improvement plan and ultimately within the rate study. The maintenance and rehabilitation schedule will be informed by a life cycle cost analysis for all major facilities. Our team's active involvement in organizations such as the Water Utility Council through the Illinois Section of American Water Works Association (ISAWWA) and the Metrowest Council of Government allows us to stay current on potential regulatory requirements. Accordingly, we propose reviewing any potential regulations related to concerns including, but not limited to, per- and polyfluoroalkyl substances (PFAS), phosphorus and nitrogen, lead service lines, and cybersecurity to determine how these regulations could impact the City in the next 10 years. Additionally, we will include information regarding timelines, costs, and potential funding sources for previously identified regulatory considerations. Task 3 Summary Deliverables Capital Improvement Plan Workbook Meetings Facility Site Visits. Virtual Interactive Work Session #1 (included in Task 4) Task 4: Develop Multi-Year Financial Forecast We will prepare an analysis to determine the revenue required to support utility operations, including capital spending based on the analysis completed in Task 3. We will use our financial model or the City's Water Worth model to develop alternative near-term (five-year) and long-term (ten-year) financial management plans for each of the enterprise funds and will identify projected annual revenue requirements and rate adjustments for customers of the water and sewer systems. As part of the analysis, we will examine historical operating expenses, growth and water use trends, alternative capital spending levels, debt service coverage ratios, levels of operating and capital reserves, and other financial policies that drive the revenue requirements of each of the utilities. Once the baseline forecast has been developed, we will conduct sensitivity analysis to consider items such as alternative demand projections, cost escalation factors, changes in usage patterns, elasticity of customer demand in response to rate increases, and other variables that could affect the financial performance of the utilities. One item of particular importance in a utility's financial plan is the projection of future costs, especially considering recent cost increases. The primary cost inputs for utilities have increased at elevated levels over recent years, and the effects of a reduced workforce in construction are causing significant increases in capital improvement projects as well as operation and maintenance items. Our financial model is set up to easily adjust the rate of inflation in future interim scenarios. We will also provide recommendations on inflation rates to assume for all cost estimates based on our industry experience and published indices. Most importantly our analysis will be used to demonstrate the impacts of various inflation assumptions, demonstrating a range of scenarios and impacts on the finances of the water and sewer systems. Closely related to this analysis is an examination of adequacy of reserves. Adequate reserves are fundamental to achieving financial stability and can help some systems to avoid sudden or disruptive rate adjustments in the face of unanticipated operating or capital needs or changes in demand. We will examine the City's current reserve balances and incorporate these balances and alternative reserve policies into the financial planning model and the conversations on sustainability. The financial forecasts developed during Task 4 will outline the near-term and long-term needs of the system and the additional revenue required to meet the funding needs each year. Tasks 5 and 6 will use the financial forecast as the foundation to examine how future revenues are collected through a cost of service and rate structure analysis. City of West Chicago - 2026 Water and Sewer Rate Study Scope of Work ===== PDF PAGE 111 ===== [Extraction: embedded PDF text] 9 Task 6 Summary Deliverables Assumptions & Results Workbook(s), Rate Schedules & Customer Impacts Meetings Virtual Interactive Work Session #3 Task 7: Meetings, Report & Council Presentations The City will gain long-term value in a report that clearly documents the results of the study. We will first prepare a draft for your review, incorporate comments into a final draft report, and incorporate final comments into a final report. The report provides a simplified and straightforward synopsis of the analysis, and includes appendices that contain a series of graphs, charts, and tables providing the supporting details of the study. The report will include a stand-alone Executive Summary for distribution, which often serves as an effective communication tool with Council and the community. The report will be prepared and reviewed by members of our project team that are licensed professional engineers in the State of Illinois. At the conclusion of the study, we will participate in a workshop with Management and/or Council to explain the findings and recommendations of the study using informative graphics to aid in understanding more technical aspects of the presentation. We will also assist with implementation in terms of participation in a presentation to the City Council to support the adoption of new rate schedules. Task 7 Summary Deliverables Draft Report, Final Report, Council Presentation Meetings Virtual presentations to Staff and Management, Onsite presentation with City Council City of West Chicago - 2026 Water and Sewer Rate Study Scope of Work