SR - AGR-6331.3 - WATER RATE STUDY AND WATER RATE MODEL THIRD AMENDMENT1. SUBJECT
Third Amendment to Agreement No. 6331 with Raftelis Financial Consultants in the amount of
$10,579.
2. SUMMARY
Third Amendment in the amount of $10,579 to Raftelis Financial Consultants is to cover costs
for additional work items needed in developing the Water Rate Study and Water Rate Model.
3. RECOMMENDED ACTION
Approve Third Amendment to Agreement No. 6331 with Raftelis Financial Consultants in the
amount of $10,579 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
$10,579
5. STRATEGIC PLAN GOAL(S)
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.
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 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 of the City's water system. To cover additional work items that
developed during the continued work on the rate study and development of the water model, a
First and Second Amendment were approved by Council in November 2016 and March 2017,
respectively.
As conditions have continued to change and the project progresses, additional unforeseen work
has been required. Original assumptions to both the water financial plan and water model have
resulted in several iterations which have had to have been modified or reworked along with
elements of the final report. Minor changes for the 218 notice support are also needed. As a
result, more effort has been needed to continue to facilitate the changes. Therefore, staff is
recommending the addition of the Third Amendment to continue the work on the study and
model.
The original amount of the contract with Raftelis Financial Consultants was $56,997. With the
approval of the First and Second Amendment, the total amount of the contract with Raftelis
became $91,850. With the approval of this Third Amendment for $10,579, the total contract for
Raftelis will be $102,429.
8. ATTACHMENTS
• Third Amendment to Consultant Services Agreement
CITY COUNCIL MINUTES SEPTEMBER 12, 2017
2. PUBLIC COMMENTS (Continued)
Rebecca Bates — spoke regarding the homeless in Orange and its effects on her business.
Bill Masters — spoke regarding the homeless and its effects on Orange business owners and
their customers.
Jerome Ryan — spoke regarding the dormitory housing of Chapman students in Old Towne
Orange, and the increasing homeless population in Orange.
3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion
approving the recommended action listed on the Agenda. Any member of the City Council,
staff or the public may request an item be removed from the Consent Calendar for
discussion or separate action. Unless otherwise specified in the request to remove an item
from the Consent Calendar, all items removed shall be considered immediately following
action on the remaining items on the Consent Calendar.
3.1 Confirmation of warrant registers dated August 1, August 4, August 10, August 15,
August 18, August 23, August 24, August 31, and September 1, 2017. (C2500.J.1.7)
ACTION: Approved.
3.2 City Council Minutes, Regular Meeting of August 8, 2017 and Special Meeting of
August 29, 2017. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 Investment Oversight Committee Report for the period ending August 31, 2017.
(OR1800.0.27.16)
ACTION: Received and filed.
3.5 Third Amendment to Agreement No. 6331 with Raftelis Financial Consultants in the
amount of $10,579. (A2100.0; AGR- 6331.3)
ACTION: Approved Third Amendment to Agreement No. 6331 with Raftelis Financial
Consultants in the amount of $10,579 and authorized the Mayor and City Clerk to execute
on behalf of the City.
PAGE 4