SR - AGR-6331.2 - SECOND AMENDMENT TO WATER RATE STUDY AND WATE RATE MODEL AGREEMENT1. SUBJECT
Second Amendment with Raftelis Financial Consultants for developing the Water Rate Study and
Water Rate Model, in the amount of $16,148.
2. SUMMARY
Second Amendment is to cover additional costs needed to continue to develop the Water Rate
Study and Water Rate Model.
3. RECOMMENDED ACTION
Approve Second Amendment to Agreement No. 6331 with Raftelis Financial Consultants in the
amount of $16,148 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:
600.8011.51620.00000 Engineering Services
$130,716
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 3/14/17
6. GENERAL PLAN IMPLEMENTATION --7
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 April 12, 2016, the City approved a consultant services agreement with Raftelis Financial
Consultants for a comprehensive rate study for the Water Fund to ensure the adequacy of funds
for maintenance and operation. On November 9, 2016, the City approved a First Amendment for
$18,705 to cover additional work items including the development of several additional water rate
scenarios for comparison and analysis, along with a survey of water rates for neighboring water
agencies.
In the continuing course of developing the Water Rate Study and the Water Model, additional
work items are required that were not included in the original proposal and first amendment. Some
of those items included further water rate information from neighboring cities, modifications to
the bill impacts and revenue analysis of the model, proposed work for additional model
modifications, and presentation support in evaluating the best rate solution for the City.
The original amount of the contract with Raftelis Financial Consultants was $56,997. With the
approval of the First Amendment for $18,705, the total amount of the contract with Raftelis
became $75,702. With the approval of this Second Amendment for $16,148, the total contract for
Raftelis will be $91,850.
8. ATTACHMENTS
• Second Amendment to Consultant Services Agreement