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BACKGROUND In October 2015, the City conducted a comprehensive water and sewer rate analysis that resulted in rate increases equivalent to Consumer Price Index (CPI) adjustments annually. The study also established a tiered water rate structure, implemented recycled water rates eliminating subsidizing the rate payers and allowing for the City to pass through Dublin San Ramon Services District and City of Livermore wastewater treatment rates and Zone 7 Water Agency water rates. Proposition 218 requires that these rates be reviewed a minimum of once every five years. Based on this, the City awarded a contract to Raftelis, Inc. in September 2019 to conduct water and sewer rate studies. City staff and Raftelis, Inc. were expecting to complete the rate studies in the summer of 2020. DISCUSSION Due to the COVID-19 pandemic, the City paused the water and sewer rate studies to focus on responding to the pandemic. In addition, staff is also reviewing options to address Per- and polyfluoroalkyl substances (PFAS) in the City's groundwater, the final decision of which will affect the water system's funding requirements both in terms of capital investments and on-going operating expenditures. As such, staff decided to wait until December 2020 or January 2021 to restart the water and sewer rate study to accurately reflect those PFAS related capital and operating expenses. The current scope of the Raftelis Inc. contract needs to be amended to extend the contract expiration date and increase the scope to reflect the need for water rate models that include scenarios for PFAS capital and operating costs. The proposed amendment with Raftelis Inc. accomplishes those objectives. Jointly Submitted by: Approve by: Kathleen Yurchak Tina Olson Nelson Fialhc Director of Operations and Director of Finance City Manager Water Utilities Attachment: 1. 1 St Amendment to Professional Services Agreement with Raftelis Page 2 of 2