SR - AGR-6249.1 - FIRST AMENDMENT SANITATION RATE STUDY� pP 01Qa _
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UIYTY
AGENDA ITEM
March 8, 2016
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Joe DeFrancesco
Public Works D' 4etor a/
ReviewedNerifie
City Manager
Finance Direct r
To Be Presented By:
Joe DeFrancesco
X Cons Calendar
City Mgr Rpts
Council Reports
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Boards /Crates
Public Hrgs
Admin Reports
Plan/Environ
1. SUBJECT
Amendment Number 1 to Consultant Services Agreement No. 6249 with Raftelis Financial
Consultants for additional services preparing the Sanitation Rate Study (SP- 3926).
2. SUMMARY
Amendment Number 1 will increase the scope of work to be completed by Raftelis Financial
Consultants to include additional modeling and analysis of the various sanitation services for the
Sanitation Rate Study.
3. RECOMMENDED ACTION
Approve amendment Number 1 to the existing Raftelis Financial Consultants, Consultant Services
Agreement and increase the contract amount by $13,980.00 and authorize the Mayor and City
Clerk to execute the Amendment on behalf of the City.
4. FISCAL IMPACT
Funds are budgeted and available in the following account:
220.5011.56200.15508 Sanitation and Sewer $ 13,980.00
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.
ITEM " '- 1 3/8/16
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6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goal 1.0: Ensure water, sewer, and storm drain systems that meet the needs
of residents and businesses.
Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the
community.
7. DISCUSSION and BACKGROUND
On August 11, 2015 the City of Orange entered into a contract with Raftelis Financial Consultants,
in the amount of $38,638 for the preparation of the Sanitation Rate Study.
The original scope of work to be completed included a financial analysis of the City's sanitation
fund to verify and balance revenues and expenditures. Also included in the analysis is the need
to develop a reasonable rate for the Capital Improvement Program. The initial model (financial
analysis) was performed based on the existing structure that combined all sanitation services into
one fund. After review of the proposed rates, staff requested additional updates to the model so
that each service is modeled separately with its own fund. This will not only provide more
transparency for each sanitation service, but will align revenue with expenditure for each service.
Staff also requested additional analysis based on "bins" or lot size to assess rates proportionately.
The additional services will increase their contract to a not to exceed total of $52,618.
8. ATTACHMENTS 771
• Amendment No. 1
JD;pt;ly
N: \Public Works\ADMIN\LYoung \Council Items \COUNCIL\March- 2016\Raftelis CSA Amend Ldoc
ITEM 2 3/8/16
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