RAFTELIS FINANCIAL CONSULTANTS, INC. (3)

MEMORANDUM Date: September 23, 2024 To: Susan Hsieh, Director of Finance Gerry Beaudin, City Manager Through: Siew-Chin Yeong, Public Works Director From: Tamara Baptista, Assistant Director of Public Works Operations & Maintenance Subject: Requesting an Extension with Raftelis Financial Consultants Recommendation: Staff recommends the extension of the expired Agreement with Raftelis Financial Consultants with the approval of the sixth amendment of the five-year agreement for the water and sewer rate studies, that was entered into on September 3, 2019. The term of the agreement expired on September 3, 2024. 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 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 agreement 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 for the PFAS project. Docusign Envelope ID: 210EA3AB-C6FF-4A9E-A1EB-F836A623AA9D