SR - AGR-6249 - SANITATION RATE STUDY'�y pi
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AGENDA ITEM
August 11, 2015
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
Interim City Manag
FROM: Joe DeFrancesco
Public Works D' ector
ReviewedNerified By:
Interim City Manager
Finance Director
l '� -
To Be Presented By: Joe DeFrancesco
X Cons Calendar
City Mgr Rpts
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Boards /Cmtes
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Plan /Environ
1. SUBJECT
Award of Consultant Services Agreement to Raftelis Financial Consultants for preparing the
Sanitation Rate Study (SP- 3926).
2. SUMMARY
This contract authorizes Raftelis Financial Consultants to perform professional services for
preparing the Sanitation Rate Study.
3. RECOMMENDED ACTION
Award the contract in the amount of $38,638.00 to Raftelis Financial Consultants and authorize
the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
Funds are budgeted and available in the following account:
220.5011.56200.15508 Sanitation and Sewer $ 38,638
Total $ 38,638
5. STRATEGIC PLAN GOAL(S)
lb. Provide for a safe community - Provide and maintain infrastructure necessary to ensure the
safety of the public.
4b. Provide outstanding public service - Provide facilities and services to meet customer
expectations.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goal 1.0: Ensure water, sewer, and storm drain systems that meet the needs
of residents and businesses.
ITEM :3.1 1 8/11/15
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Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the
community.
7. DISCUSSION and BACKGROUND
The City is in need of a current financial analysis of the City's sanitation funds to verify balanced
revenues and expenditures, while developing a reasonable fund balance for t h e Capital
Improvement Program and emergency purposes. The analyses will review the current rate
structure to determine if there is a need for any adjustments for the next five years. Pursuant to
Proposition 218, any proposed increases cannot exceed the City's estimated reasonable cost of
providing sewer and related services. The existing Sanitation Services include Street Sweeping,
Street Tree Maintenance, Sewer Maintenance, Environmental Compliance, and Storm Water
Management. The City restructured its Sanitation Rate in 2007 and desires to review and analyze
the rates based on system changes since 2007.
The Sanitation Rate Study will develop a five -year financial plan. It is crucial to have a sound
financial plan before adjusting any rates. The study will also develop a sewer capital cost utilizing
the City's Sewer Master Plan. The Sewer Master Plan prepared by Stantec Consulting, Inc. in
August 2012 estimated $64,361,000 in proposed capital improvement projects. These projects
include sewer main replacement to replace the aging sewer infrastructure and pipes that are broken
or damaged.
City staff requested proposals from five qualified engineering or financial firms for the preparation
of the Sanitation Rate Study. Two proposals were received, evaluated, and ranked as follows:
1) Raftelis Financial Consultants
2) Black & Veatch Corporation
Raftelis Financial Consultants showed thorough understanding of the project scope, challenges,
requirements, and proposed a reasonable fee. Staff recommends awarding a contract to Raftelis
Financial Consultants. Raftelis' cost proposal based on the RFP requirements is $34,276.00.
Raftelis proposal also included a cost for optional services of providing Proposition 218
presentation, public hearing, and Public Notice for $4,362. Since the public hearing is a
requirement under Proposition 218, staff recommends including it with this contract with a total
cost of $38,638.
8. ATTACHMENTS
• Consultant Services Agreement and scope of work
• Consultant Selection Worksheets and related documentation are on file in Public Works.
JD;pt;ly
NAPublic Works\ADMIN \LYoung \Council Items \COIINCILWugust- 2015\Award CSA for Sanitation Rate Study - Raftelis.doc
ITEM 2 8/11/15
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CITY COUNCIL MINUTES
AUGUST 11, 2015
3.6 Fourth and Final Amendment to Agreement with Siemens Industry, Inc./Republic
Intelligent Transportation Services to provide Emergency Response Services for
traffic signals and street lighting maintenance. (A2100.0 Agr- 5713.4)
ACTION: Approved fourth and final Amendment to Contract AGR -5713 with Siemens
Industry, Inc. /Republic Intelligent Transportation Services (ITS) in an amount not to
exceed $40,000 to provide emergency response services for traffic signals and street
lighting maintenance services within the City, and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.7 Third Amendment to Contract with Commercial Aquatic Services, Inc. for an
amount not to exceed $35,354.80 in FY 15 -16. (A2100.0 Agr- 5576.A.3)
ACTION: Approved the contract and authorized the Mayor and City Clerk to execute on
behalf of the City.
3.8 Attorney Services Agreement with the Law Firm of Kutak Rock LLP to provide Legal
Services related to Litigation Defense in an amount not to exceed $100,000. (A2100.0
Agr -6248)
ACTION: Approved the agreement and authorized the Mayor and City Clerk to execute
on behalf of the City.
3.9 Award of Consultant Services Agreement to Raftelis Financial Consultants for
preparing the Sanitation Rate Study. (A2100.0 Agr -6249)
ACTION: Awarded the contract in the amount of $38,638.00 to Raftelis Financial
Consultants and authorized the Mayor and City Clerk to execute on behalf of the City.
3.10 Updated Agreement between Wittman Enterprises and the City of Orange for
Emergency Medical Services (EMS) Transportation Program billing services.
(A2100.0 Agr -6250)
ACTION: Authorized the Mayor and City Clerk to execute a Professional Services
Agreement between the City of Orange and Wittman Enterprises.
3.11 Consultant Services Agreement between Bureau Veritas North America, Inc. and the
City of Orange for Plan Review Services for Fiscal Year 2015 -16. (A2100.0 Agr -
3100.L)
ACTION: Approved the renewed agreement between the City of Orange and Bureau
Veritas North America, Inc. in an amount not to exceed $70,000 for Fiscal Year 2015 -16
and authorized the Mayor and City Clerk to execute on behalf of the City.
3.12 Number not used.
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