10-24-2016 BPU RPT 07 - Laserfiche WebLink

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W A I= R E N E R U Y I I F F -- RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: OCTOBER 24, 2016 ITEM NO: 7 SUBJECT: SECOND AMENDMENT TO THE PROFESSIONAL CONSULTANT SERVICES FOR ELECTRIC COST OF SERVICE AND RATE DESIGN PROJECT - ASSIGNING THE AGREEMENT TO NEWGEN STRATEGIES & SOLUTIONS, LLC, EXTENDING THE TERM TO APRIL 30, 2018, AND INCREASING THE CONTRACT BY $85,820 FOR A TOTAL CONTRACT AMOUNT OF $231,970 ISSUE: The item for Board of Public Utilities consideration is approval of a Second Amendment to the Professional Services Agreement (Agreement) for the Electric Cost of Service Analysis and Rate Design Project, to assign the Agreement from Leidos Engineering, LLC., of Denver, Colorado to NewGen Strategies and Solutions, LLC, of Lakewood, Colorado, extend the term of the Agreement to April 30, 2018, and increase the Agreement by $85,820 to a revised contract amount of $231,970. RECOMMENDATION: That the Board of Public Utilities: 1. Approve the Assignment Agreement between City of Riverside, Leidos Engineering, LLC., of Denver, Colorado to NewGen Strategies and Solutions, LLC, of Lakewood, Colorado, approving the assignment of the Professional Services Agreement for the Electric Cost of Service Analysis and Rate Design Project to NewGen Strategies and Solutions, LLC; and 2. Approve the Second Amendment to the Professional Services Agreement for the Electric Cost of Service Analysis and Rate Design Project to extend the term of the Agreement to April 30, 2018, and increase the Agreement by $85,820 to a revised contract amount of $231,970. BACKGROUND: On July 10, 2015, the Board of Public Utilities (Board) approved the Agreement with Leidos Engineering, LLC, of Denver, Colorado, (Leidos), for the purpose of conducting an Electric Cost of Service Analysis and Rate Design Project ( "the Project ") for Riverside Public Utilities. The Project is a critical component of Utility 2.0 and the Thriving Financially Roadmap. The scope of the Project focuses on three areas: • Phase 1 — Cost of Service Analysis at Current Rates; • Phase 2 — Electric Utility Rate Trends Analysis; and • Phase 3 — Rate Design Recommendations. The work for the three phases is a coordinated effort between RPU staff and consultants. Current tentative presentation dates to the Board are June through August 2017. Conceptual approval of Utility 2.0 and incorporating numerous financial scenarios into the 10 year financial proforma resulted in a delay in schedule from the original implementation date and required additional effort by RPU staff and Leidos. Additional effort was also required due to the complexity of the analysis of future rate options and determining rate alternatives. These issues combined required additional meetings between RPU staff and consultants. The First Amendment to the Agreement with Leidos approved on