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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 3, 2018 <br />TITLE: <br />AWARD AGREEMENT TO STANTEC FOR <br />A WATER AND SEWER COST OF SERVICE <br />STUDY (NONGENERAL FUND) <br />(STRATEGIC PLAN NO. 6, 1 H} <br />i .,i/ ; <br />4F c <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2n° Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an agreement with Stantec to <br />conduct a water and sewer cost of service study for a three-year period beginning July 3, 2018 <br />and expiring July 2, 2021, with provisions for up to two one-year renewal options exercisable by <br />the City Manager and City Attorney, in an amount not to exceed $158,000, including a $138,912 <br />project fee and a contingency of $19,088 for the term of the agreement, subject to nonsubstantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On February, 17, 2015, at the conclusion of a comprehensive rate study, the City Council <br />adopted a five fiscal -year rate plan covering FY 14/15 through FY 18/19 for the City's water and <br />sewer services. The final rate adjustment of the current five fiscal -year plan is scheduled to take <br />effect on July 1, 2018. To comply with California Proposition 218 requirements, as well as to <br />ensure the continued success and financial stability of the water and sewer enterprises, it is <br />necessary to perform a new cost of service study for the next five years. <br />Since the adoption of the current rate plan, staff has completed detailed infrastructure master <br />plan documents that clearly define the capital infrastructure needs for the water and sewer <br />systems. The recommendations of these infrastructure master plans, along with water and sewer <br />enterprise financial statements, reserve policies, and projected community consumption demands <br />and needs, will be studied by the consultant. The consultant will be tasked with establishing a <br />cost recovery, financing, and rate plan for the next five years that is prudent, affordable, and <br />equitable. By completing these efforts, the City will be able to accomplish water and sewer <br />infrastructure investment objectives and ensure the continued provision of award-winning drinking <br />water and reliable sewer collection services for years to come. <br />Staff prepared a Request for Proposals (RFP) which was advertised on the City's Planet Bids <br />website, as well as the City website. Eight proposals were received and evaluated by a selection <br />2513-1 <br />