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qualifications and experience in performing similar studies in the water, wastewater and <br />solid waste industries. The recommendations made by HF&H that were implemented <br />during 2000/2001 assured that there would be sufficient revenues from water sale in <br />those years and subsequent years such that the City's water enterprise was able to <br />operate without water rate increases for the past four years. <br />HF&H also developed the City's current computer based water rate model that has <br />been utilized for the rate evaluations for the past ten years and has full knowledge of <br />Pleasanton's rate setting issues. Because of HF&H's familiarity with the City's rate <br />setting requirements and first hand involvement in developing a custom rate model for <br />Pleasanton, there is a cost savings and minimal staff time required by the City in having <br />HF&H perform the recommended update. In addition to this water rate analysis; staff is <br />beginning the process of reviewing both water and sewer connection fees. Staff <br />anticipates. bringing the water connection analysis to City Council in early-fall :and the <br />sewer connection analysis in early winter. <br />Project Budget <br />The negotiated scope of work is attached to this staff report and totals $30,860. Staff <br />requests a contingency amount of $6,200 (approximately 20 percent) be added to the <br />scope of services amount to allow for additional revenue/expenditure review; and also <br />including additional financial updates to the current model. Therefore, the total .cost for <br />this project, on atime-and-material basis, is estimated at anot-to-exceed amount of <br />$37,060.. . <br />Scope of Work <br />The attached consultant contract with HF&H includes tasks to complete the water rate <br />study. A, comprehensive rate study of this complexity normally would require between <br />16 and 24 weeks to complete, dependent upon City review time, time to collecf and <br />provide data; meeting scheduling, etc.. If Council approves the consultant contract at <br />tonighYs meeting, the consultant and City staff have determined that the work should be <br />.completed by November 5, 2007. <br />Submitted by: <br />~~~ <br />Rob Wilson ~ , <br />Director of Public Works <br />Fiscal Review: <br />J` - <br />David P. Culver <br />Director of Finance <br />Approved y: <br />Nelson Fialho <br />City Manager. <br />Attachments: <br />1. Contract for Consulting Services <br />Page3of3 <br />