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Page 1 of 3 Item #5 CITY COUNCIL AGENDA REPORT February 6, 2024 Public Works - Operations Division TITLE: APPROVE FIFTH AMENDMENT TO AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. FOR AN INCREASE OF $57,509 FOR A TOTAL NOT-TO- EXCEED AMOUNT OF $317,059 FOR WATER AND SEWER CONNECTION FEES STUDY CONSULTING SERVICES SUMMARY The City Council initially awarded a professional services contract to Raftelis in 2019 and subsequently approved four amendments to the agreement, to extend the term and to augment the scope of work to include the capital and operating costs for the original PFAS project, drought rates and connection fees study. The proposed fifth amendment is to prepare a water and sewer connection fees study. This will increase the total contract by $57,509 for a new not-to-exceed total of $317,059. RECOMMENDATION Approve and authorize the City Manager to execute the contract with Raftelis Financial Consultants, Inc. by an increase of $57,509, to an amount not-to-exceed $317,059, to prepare a water and sewer connection fees study. BACKGROUND The City awarded a contract to Raftelis Financial Consultants, Inc. (Raftelis) in September 2019 to conduct water and sewer rate studies. City staff and Raftelis were expecting to complete the rate studies in mid-2020 but delayed the study due to the pandemic, and the City's desire to have water rate models include new capital and operating costs associated with Per- and polyfluoroalkyl substances (PFAS) in the City's groundwater supply, which were not expected to be known until spring 2021. On September 1, 2020, City Council approved the first amendment to extend the contract date and increase the not to exceed amount by $30,700 to add to the scope of work to include new capital and operating costs associated with PFAS in the City's groundwater supply. On June 15, 2021, the City Council received a presentation on the Basis of Design Report (BOD) prepared by Carollo Engineers and approved finalizing the project design. On September 7, 2021, City Council approved a PFAS funding plan, after which staff and Raftelis restarted the water and sewer rate study, which incorporated $46 million for the rate-funded portion of the PFAS project. On October 15, 2021, the City Council approved the second amendment extending the contract date. On December 21, 2021, the City Council approved a third amendment to this agreement to increase the scope to include drought rates and water and sewer connection fees, which increased the total contract by $74,000 for a total not-to-exceed amount of $213,400. On September 6, 2022, Council directed staff to pause the PFAS project and to evaluate other water supply alternatives. Accordingly, the rate study was also paused as it included funding Page 22 of 554