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25A - AMEND AGMT WITH STANTEC FOR WATER RATE
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25A - AMEND AGMT WITH STANTEC FOR WATER RATE
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1/29/2020 4:39:28 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Public Works
Item #
25A
Date
2/4/2020
Destruction Year
2025
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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 4, 2020 <br />TITLE: <br />APPROVE AN AMENDMENT TO THE <br />AGREEMENT WITH STANTEC TO <br />INCLUDE A WATER RATE ASSISTANCE <br />PROGRAM FEASIBILITY STUDY FOR AN <br />AMOUNT NOT TO EXCEED $37,124 <br />(NON -GENERAL FUND) <br />{STRATEGIC PLAN NO. 6, 1H} <br />/s/Kristine Ri <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />1�1��►1�1�1:3q:7 <br />RECOMMENDED ACTION <br />Authorize the City Manager to amend the agreement with Stantec to expand the scope of work to <br />include a Water Rate Assistance Program Feasibility Study and additional community outreach <br />efforts, increasing the compensation by an amount not to exceed $37,124, for a total agreement <br />amount not to exceed $220,124, subject to non -substantive changes approved by the City Manager <br />and City Attorney. <br />DISCUSSION <br />On July 3, 2018, at the conclusion of a competitive bid process, the City entered into an agreement <br />with Stantec to perform a Cost of Service Study for the Water and Sewer enterprises. Their primary <br />tasks were to create a financial plan for each enterprise, perform a cost -of -service analysis, and <br />provide a recommended five-year rate structure for City Council consideration. <br />On November 19, 2019, the City Council approved a resolution adjusting City water and sewer <br />rates, including the five-year schedule of rate increases. The rate increases were necessary to <br />cover the costs of the significant investment needed for the repair and rehabilitation of the City's <br />aging water and sewer infrastructure. <br />The City's Public Works Water Resources Division approached Stantec about conducting a <br />feasibility study to evaluate the legal and procedural elements of creating a Water Rate Assistance <br />Program (WRAP) to help offset the cost of water service for income -restricted customers. The <br />feasibility study will evaluate the legal constraints of establishing a WRAP in California, conduct a <br />survey of other utilities in California that offer similar programs, and provide a high-level description <br />of implementation requirements, such as the customer qualification process and level(s) of <br />assistance provided. <br />25A-1 <br />
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