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File #: 21-0579    Version: 1
Type: Consent - Agreements Status: Passed
File created: 10/14/2021 In control: City Council
On agenda: 11/9/2021 Final action: 11/9/2021
Title: Agreement with Raftelis Financial Consultants for preparing the Water and Sanitation Rate Study.
Attachments: 1. Staff Report, 2. Rating Summation, 3. Professional Services Agreement
TO: Honorable Mayor and Members of the City Council

THRU: Thomas R. Hatch, Interim City Manager

FROM: Christopher Cash, Public Works Director


1. SUBJECT
title
Agreement with Raftelis Financial Consultants for preparing the Water and Sanitation Rate Study.
body
2. SUMMARY
Agreement with Raftelis Financial Consultants to update the Water and Sanitation Rate study and provide final report on rate design and bill impacts.
3. RECOMMENDED ACTION
recommendation
Approve the agreement with Raftelis Financial Consultants in the amount of $85,016 for the Water and Sanitation Rate Study; and authorize the Mayor and City Clerk to execute on behalf of the City.

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4. FISCAL IMPACT
The total cost for the agreement is $85,016 and will be funded in Water Rate Study (20428) through Water Fund (600).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.
6. DISCUSSION AND BACKGROUND
In 2017, the City conducted a comprehensive rate study for the Water and Sanitation Funds to ensure the adequacy of funds for maintenance and operations. Utilizing the public noticing process, the City Council established water rates through January 1, 2022. Due to continually escalating wholesale water supply costs, the effects of the groundwater treatment systems, and ongoing water conservation impacts, the City is in need of a current financial analysis of the City's Water and Sanitation funds to verify balanced revenues and expenditures, while maintaining reasonable fund balances for emergency purposes. These analyses will show if a rate adjustment is needed for a five-year period, to be commenced as early as January 2023. Pursuant to Proposition 218, any proposed increase cannot exceed the City's estimated reasonable cost of providing water service.
As a part of the study, the consultant is to provi...

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