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Home My WebLink About11. Authorize the General Manager to execute an amendment to the As-Needed Professional services agreement with Raftelis Financial Consultants, Inc. for three-year term of $196,000 for amended total contract not to exceed $345,404Page 1 of 5 Item 11. DCENTRALSAN MEETING DATE: SEPTEMBER 5, 2024 BOARD OF DIRECTORS POSITION PAPER SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO THE AS -NEEDED PROFESSIONAL SERVICES AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. (RAFTELIS) FOR ATHREE- YEAR TERM IN AN AMOUNT OF $196,000, FOR AN AMENDED TOTAL CONTRACTAMOUNT NOT TO EXCEED $345,404 SUBMITTED BY: INITIATING DEPARTMENT: GEOFF MICHALCZYK, MANAGEMENT ANALYST THOMAS BRIGHTBILL, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-RATES AND FEES REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS Roger S. Bailey General Manager ISSUE The Board of Directors (Board) authorization is required for the General Manager to execute amendments to professional consulting services agreements in an amount greater than $100,000 for agreements with an original amount less than $2,000,000, in compliance with item 9b of Board Policy 37. BACKGROUND Raftelis has been providing financial consulting services to Central San since 2014. Raftelis has helped Central San develop long-term rate models, perform cost -of -service analyses, and provide Proposition 218 support. Most recently, Raftelis was the lead consultant for updating Central San's annual sewer service charges for a two-year period beginning in FY 2023-24. Central San's current contract with Raftelis expires on September 30, 2024. An amendment to the existing agreement is required to retain Raftelis' services as Central San prepares for significant financial planning events such as the following: September 5, 2024 Regular Board Meeting Agenda Packet - Page 39 of 66 Page 2 of 5 1. Board Financial Planning Workshops scheduled for December 2024. 2. Updated cost -of -service analyses and annual sewer service charge rate setting for FY 2024-25 and future years. 3. Ongoing support for financial impacts of nutrient removal projects. 4. Develop financial pro formas and assist as needed for anticipated debt issuances. This consulting work requires extensive and in-depth knowledge of Central San's rates, finances, financial constraints, financial and working relationships such as our agreement with the City of Concord, and Central San's pricing and other considerations related to recycled water. Raftelis staff is intimately familiar with such considerations. Retaining a new consultant and providing them with the background materials and training to achieve a similar level of familiarity would jeopardize our ability to meet deadlines associated with the financial planning events described above. As -needed agreements allow Central San staff to expedite and assign work to pre -qualified firms in an efficient and responsive manner through the issuance of a task order which defines their respective scope of work, project cost, and delivery schedule. Task orders are negotiated, reviewed, and approved by the Division Manager, released, and tracked following a similar task order release process that has also been used successfully for both Planning and Capital as -needed blanket purchase agreements. When this amended contract expires, staff is committed to obtaining proposals from other financial consultants as part of a competitive bid process. ALTERNATIVES/CONSIDERATIONS 1. Five-year as -needed contract - Authorize the General Manager to execute an as -needed Professional Services Agreement with Raftelis for a five-year term in an amount not to exceed $300,000. This was the recommendation presented to the Finance Committee. 2. One-year contract followed by a competitive request for proposal (RFP)process - Authorize the General Manager to execute an as -needed Professional Services Agreement with Raftelis for a one-year term in an amount not to exceed $60,000. When this contract expires, Central San should obtain proposals from other financial consultants as part of a competitive bid process. 3. Obtain proposals from other financial consultants as part of a competitive bid process - This alternative would require Central San to issue a request for proposals via PlanetBids and the Central San website. Qualified firms will be evaluated based on experience, availability, costs, and references. This alternative is not recommended because the process would jeopardize our ability to meet deadlines associated with the Board Financial Planning Workshops this fall and the Proposition 218 notification deadlines for rate adoption for FY 2024-25. FINANCIAL IMPACTS The services provided are paid for and included in the Board -approved Budget; no additional funding for these as -needed agreements is required. This selection process and award of an agreement provides a go -to firm when support is required. This allows Central San staff to expedite the process of completing work and addressing tasks as needed, and to respond to needs in an efficient manner. Ongoing and additional specialty support needs are anticipated to address upcoming projects and tasks. COMMITTEE RECOMMENDATION The Finance Committee was presented with a five-year as -needed service agreement in the amount of September 5, 2024 Regular Board Meeting Agenda Packet - Page 40 of 66 Page 3 of 5 $300,000, which it reviewed at its meeting on July 23, 2024. The Committee recommended providing the Board with two alternatives of authorizing the General Manager to execute either a five-year as -needed services agreement or a one-year agreement followed by a competitive RFP process. After the Committee meeting, staff changed the recommendation to amending the existing agreement for three years and adding $196,000 to the agreement, which will be followed by a competitive RFP process. RECOMMENDED BOARD ACTION Authorize the General Manager to amend an as -needed Professional Services Agreement with Raftelis Financial Consultants, I nc. for a three-year term in an amount not to exceed $196,000 for an amended amount not to exceed $345,404. Strategic Plan re -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability GOAL SIX: Infrastructure Reliability Strategy 2 - Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Proposed Raftelis Scope and Fees September 5, 2024 Regular Board Meeting Agenda Packet - Page 41 of 66 Page 4 of 5 150 N Santa Anita Av. Phone 626 . 583 . 1894 www.raftelis.com Arcadia, CA91006 Fax 213 262 .9303 June 17, 2024 Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Subject: Proposal for On -call Financial Services Dear Ms. Gemmell: Raftelis Financial Consultants, Inc. (RFC) is pleased to present this proposal for on -call financial services for five years to the Central Contra Costa Sanitary District (District). SCOPE Raftelis has been assisting the District update its wastewater rates and providing other financial service to the District for a number of years. The District would like to enter into a five-year contract for financial on -call services with Raftelis. Raftelis will provide these services as requested by the District in a timely manner and may involve developing models to review various scenarios and the impacts on customers. These services will be provided on a time and materials basis. The five-year budget for these services is estimated to be $300,000. Raftelis will inform the District if the annual cost exceeds $50,000 in any given year. The hourly rates for CY 2024 are shown below; invoices will be based on the hourly rates in effect in any given year. Position Hourly Rate Executive Vice President $400 Vice President $360 Senior Manager $320 Manager $285 Senior Consultant $250 Consultant $220 Associate Consultant $185 Administration $100 Technology/Communications Charge" $10 September 5, 2024 Regular Board Meeting Agenda Packet - Page 42 of 66 Central Contra Costa Sanitary District Page 5 of 5 June 17, 2024 Page 2 We appreciate the opportunity to assist you with this study. This letter may be used to form an agreement by affixing your signature and returning a copy for our files. Please call me at 626 827 8931 if you have any questions. RAFTELIS FINANCIAL CONSULTANTS, INC. <6� By: Sudhir Pardiwala Exec Vice President By: Title: Date: September 5, 2024 Regular Board Meeting Agenda Packet - Page 43 of 66