SR - AGR-6249.2 - AMENDMENTS TO AGREEMENT FOR SANITATION RATE STUDY1. SUBJECT
First Amendment to Consultant Services Agreement No. 6331 with Raftelis Financial Consultants
(Raftelis) in the amount of $18,705 for additional services preparing the Water Rate Study, and
Amendment Number 2 to Consultant Services Agreement No. 6249 with Raftelis for additional
services preparing the Sanitation Rate Study.
2. SUMMARY
Raftelis has been awarded contracts to study rates for both the Water Fund and Sanitation Fund.
Extra services are now needed to study additional rate scenarios.
The First Amendment to Agreement No. 6331 in the amount of $18,705 is to cover costs for
additional work items needed in developing the Water Rate Study and Water Rate Model.
Amendment Number 2 to Agreement No. 6249 in the amount of $9,220 for additional modeling
and analysis of the various sanitation services for the Sanitation Rate Study.
3. RECOMMENDED ACTION
1) Approve First Amendment to Agreement No. 6331 in the amount of $18,705 and authorize the
Mayor and City Clerk to execute the Amendment on behalf of the City.
2) Approve Amendment Number 2 to Agreement No. 6249 in the amount of $9,220 and authorize
the Mayor and City Clerk to execute the Amendment on behalf of the City.
3) Authorize the City Manager to approve up to twenty percent (20 %) in contingencies for each
contract agreement if additional studies are necessary.
4. FISCAL IMPACT
Funds are budgeted and available in the following accounts:
600.8011.51620.00000 Engineering Services
220.5011.56200.15508 Sanitation and Sewer
$18,705
$ 9,220
5. STRATEGIC PLAN GOAL(S)
Lb Provide for a safe community - Provide and maintain infrastructure necessary to ensure the
safety of the public.
4.b. 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.
Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the
community.
17. DISCUSSION and BACKGROUND
Raftelis has been awarded contracts to study rates for both the Water Fund and Sanitation Fund.
Extra services are now needed to study additional rate scenarios. Two amendments are outlined
below:
Agreement No. 6331
On April 12, 2016, the City entered into a contract with Raftelis for a comprehensive rate study
for the Water Fund to ensure the adequacy of funds for maintenance and operation. In the course
of developing the study, additional work items were required that were not included in the original
proposal. Some of those items included the development of several additional water rate scenarios
for comparison and analysis, along with a complete survey of water rates currently in effect for
neighboring water agencies in the county. The original amount of the contract with Raftelis was
$56,997. With the approval of the First Amendment, the total amount of the contract with Raftelis
will be $75,702.
Agreement No. 6249
On August 11, 2015 the City of Orange entered into a contract with Raftelis, 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 initial proposed rates, staff issued
Amendment Number 1 requesting additional updates to the model so that each service is modeled
separately with its own fund. The additional update was to provide more transparency for each
sanitation service and align revenue with expenditure for each service. The original study was very
close to being completed in March 2016. However, after review and discussions, staff determined
that additional analysis of the components of the sanitation fee need to be modeled. So Amendment
No. 2 will perform more structural analysis of the fees and provide more study should City Council
directs staff to do so. The additional services will increase their contract to a not to exceed total of
$61,838.
8. ATTACHMENTS
First Amendment to Consultant Services Agreement No. 6331
Amendment Number 2 to Consultant Services Agreement No. 6249
CITY COUNCIL MINUTES NOVEMBER 9, 2016
3. CONSENT CALENDAR (Continued)
AGREEMENTS
3.6 First Amendment to Consultant Services Agreement No. 6331 with Raftelis Financial
Consultants in the amount of $18,705.00 for additional services preparing the Water
Rate Study, and Amendment Number 2 to Consultant Services Agreement No. 6249
with Raftelis in the amount of $9,220.00 for additional services preparing the
Sanitation Rate Study. (A2100.0; AGR- 6249.2)
ACTION: 1) Approved First Amendment to Agreement No. 6331 in the amount of $18,705
and authorized the Mayor and City Clerk to execute the Amendment on behalf of the City;
2) Approved Amendment Number 2 to Agreement No. 6249 in the amount of $9,220 and
authorized the Mayor and City Clerk to execute the Amendment on behalf of the City; and
3) Authorized the City Manager to approve up to twenty percent (20 %) in contingencies
for each contract agreement if additional studies are necessary.
3.7 Lease Agreement between the City of Orange and Southern Counties Oil Co. (SC
Fuels) providing the use of a portion of a City water well site for SC Fuels' employee
parking. (A2100.0; AGR -6407)
NOTE: Councilmember Whitaker recorded an abstention due to a potential conflict with
employment.
ACTION: Approved the Lease Agreement with SC Fuels; and authorized the Mayor to
execute and the City Clerk to attest to the Lease Agreement with SC Fuels.
3.8 Mills Act Contract No. MAC 249.0 -16 (Historic Property Preservation Agreement)
204 West Chapman Avenue. (A2100.0; AGR -6408)
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between City of Orange and the property owner for the preservation and rehabilitation of
a qualified historic property.
3.9 Mills Act Contract No. MAC 250.0 -16 (Historic Property Preservation Agreement)
224 South Olive Street. (A2100.0; AGR -6409)
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between City of Orange and the property owner for the preservation and rehabilitation of
a qualified historic property.
3.10 Mills Act Contract No. MAC 251.0 -16 (Historic Property Preservation Agreement)
204 South Grand Street. (A2100.0; AGR -6410)
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between City of Orange and the property owner for the preservation and rehabilitation of
a qualified historic property.
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