HomeMy WebLinkAbout06.a. Authorize amendment to agreement with Raftelis Financial Consultants to develop a financial plan for the Comprehensive Wastewater Master Plan and perform other studiesCentral Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
6.a.
Board Meeting Date: July 21, 2016
Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND A PROFESSIONAL
SERVICES AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS,
INC. TO DEVELOP A FINANCIAL PLAN FOR THE COMPREHENSIVE
WASTEWATER MASTER PLAN AND PERFORM OTHER STUDIES
Submitted By:
Initiating Dept/Div.:
Danea Gemmell Engineering/Planning and Development
Planning and Development Services Service
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
JM. Petit — Director of Engineering and Technical
Services
K. Alm
Counsel for the Distri
xJ I l
Roger S. Bailey
General Manager
ISSUE: In accordance with purchasing procedures, Board authorization is required
for the General Manager to execute a professional services agreement in an amount
greater than $100,000.
RECOMMENDATION: Authorize the General Manager to amend a Professional
Services Agreement with Raftelis Financial Consultants, Inc. (RFC) in an amount not
to exceed $95,694 (cumulatively, $545,564) to develop a financial plan for the
Comprehensive Wastewater Master Plan and perform other studies.
FINANCIAL IMPACTS: Adequate funds to cover this contract amendment are
available in the Planning and Development Services Fiscal Year (FY) 2016,17
Operations and Maintenance budget, which was approved by the Board on June 2,
2016.
ALTERNATIVES/CONSIDERATIONS: The Board could decide not to authorize an
amended agreement with RFC for the financial plan for the Comprehensive
Wastewater Master Plan finance plan and other studies; however this will result in a
delay to the overall Master Plan schedule and could impact the financing of Master
Plan improvements and rate setting for the FY 2017-18 sewer service rates.
BACKGROUND: At its June 14, 2014 meeting, the Board approved an agreement with
RFC for an amount not to exceed $400,000 to perform a wastewater Cost of Service
Study and Staffing Needs Assessment. Subsequent agreement amendments by staff
(#1 on June 4, 2015 and #2 on January 20, 2016) added $49,870 for additional tasks
and extended the work schedule to December 31, 2016. That work has been completed
and the results were accepted by the Board and included in the Board's consideration
of the recently approved FY 2016-17 Budget.
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POSITION PAPER
Board Meeting Date: July 21, 2016
Subject AUTHORIZE THE GENERAL MANAGER TO AMEND A PROFESSIONAL
SERVICES AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS,
INC. TO DEVELOP A FINANCIAL PLAN FOR THE COMPREHENSIVE
WASTEWATER MASTER PLAN AND PERFORM OTHER STUDIES
In summary, this proposed Amendment #3 would extend the work schedule to July 31,
2017 and require RFC to assist the District with:
1. Developing a Financial Plan for the Comprehensive Wastewater Master Plan,
based on an analysis of revenue requirements over a 20 -year period, and
identifying any proposed rate increases for FY 2017-18. The initial rate review
will be completed by March 2017 to meet the notification requirements of
Proposition 218.
2. Updating the Cost of Service model with FY 2016-17 budget data, revising the
model to segregate Recycled Water costs from wastewater treatment costs and
comparing it to the prior model's FY 2015-16 data in order to make any
necessary adjustments.
3. Reviewing Commercial Capacity Fee Audit data and recommending best
management practices and more efficient methodologies to implement and
collect capacity fees.
4. Analyzing the District's Mixed Use Rate data and providing recommendations for
streamlining the rate structure.
RECOMMENDED BOARD ACTION: Authorize the General Manager to amend a
Professional Services Agreement with Raftelis Financial Consultants, Inc. in an
amount not to exceed $95,694 (cumulatively, $545,564) to develop a financial plan for
the Comprehensive Wastewater Master Plan and perform other studies.
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