SR - AGR-6331 - WATER RATE STUDYG
AGENDA ITEM
April 12, 2016
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Joe DeFrancesco
Public Works Uector
Reviewed/Verified B
City Manager
Finance Directo
To Be Presented By: Joe
V
AGENDA ITEM
April 12, 2016
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Joe DeFrancesco
Public Works Uector
Reviewed/Verified B
City Manager
Finance Directo
To Be Presented By: Joe
DeFrancesco
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Plan/Environ
1. SUBJECT
Agreement with Raftelis Financial Consultants for the preparation of the City's Water Rate Study.
2. SUMMARY
The current water rate structure was last adopted on March 27, 2012. Based on a number of factors
it is necessary to update the Water Rate Study. This contract authorizes Raftelis Financial
Consultants to perform professional services for updated Water Rate Study.
3. RECOMMENDED ACTION
Approve agreement with Raftelis Financial Consultants in the amount of $56,997 and authorize
the Mayor and City Clerk to execute the agreement on behalf of the City.
4. FISCAL IMPACT
Funds are available to cover the cost of the contract as follows:
600.8011.51620.00000 (Engineering Services) $56,997
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community:
b. Provide and maintain infrastructure necessary to ensure the safety of the public.
4. Provide outstanding public service:
b. Provide facilities and services to meet customer expectations.
ITEM 3.5 1 04/12/16
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
In 2009, the City conducted a comprehensive rate study for the Water Fund to ensure the adequacy
of funds for maintenance and operation. Based on the rate study, the City Council established a
new water rate structure in March 2012 that implemented an annual rate adjustment starting on
January 1, 2013 through January 2017. Due to continually escalating water supply costs, the
effects of the drought, and resulting conservation efforts, the City needs to update the financial
analysis of the City's Water Fund revenues and expenditures. It is desired to complete the analysis
by January 2017.
As a part of the study, the consultant will provide the City with financial, economic, and general
consulting services. The study will include revenue requirement analysis, cost -of- service studies,
rate design, financial planning and budgeting, and other related services. Work on the project is
anticipated to begin in May 2016 and be completed in January 2017.
Proposals were solicited from five qualified consultants, all of which responded. All proposals
were carefully reviewed and evaluated by Public Works. The proposals were rated on the basis
of:
1. The consultant's understanding of the scope of the project,
2. Their description of work involved,
3. The consultant's relevant experience with this type of project,
4. The ability to meet the time /schedule, order /progress of work, and the consultant project
team.
Raftelis Financial Consultants was the top ranked consultant. From highest to lowest rating, the
summary rankings are as follows:
1. Raftelis Financial Consultants
2. Black & Veatch Management Consulting, LLC
3. FG Solutions, LLC
4. Carollo Engineers
5. Willdan Financial Services
ITEM 2 04/12/16
Raftelis Financial Consultants showed the most thorough understanding of the project scope and
challenges involved, had the most local relevant experience with this type of project, understood
the requirements, and proposed a reasonable fee. Staff is therefore recommending award of a
contract to Raftelis Financial Consultants in the amount of $56,997.
8. ATTACHMENTS
• Consultant Services Agreement
• Consultant Selection Rating Worksheet
ITEM 3 04/12/16