03-14-2022 BPU RPT 09 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: MARCH 14,2022 SUBJECT: PROFESSIONAL CONSULTANT SERVICES AGREEMENT FROM RFP NO. 2131 FOR WATER COST OF SERVICE ANALYSIS AND RATE DESIGN WITH CAROLLO ENGINEERS, INC. OF RIVERSIDE, CALIFORNIA FOR A TERM THROUGH DECEMBER 31, 2023 WITH AN OPTIONAL TWO-YEAR EXTENSION, IN THE AMOUNT OF $161,140 ISSUE: Approve a Professional Consultant Services Agreement from Request for Proposal No. 2131 for the Water Cost of Service Analysis and Rate Design with Carollo Engineers, Inc. of Riverside, CA, for a term through December 31, 2023, with an optional two-year extension, in the amount of $161,140. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve a Professional Consultant Services Agreement from Request for Proposal No. 2131 for Water Cost of Service Analysis and Rate Design with Carollo Engineers, Inc., of Riverside, California, through December 31, 2023, in the amount of $161,140; and 2. Authorize the City Manager, or designee, to execute the Professional Consultant Services Agreement and optional two-year extension, if necessary, including making minor, non- substantive changes. BACKGROUND: As Riverside Public Utilities (RPU) plans for its future, a cost-of-service analysis and rate design project is necessary for financial planning purposes as well as to design future rate adjustments beyond the current Water Utility five-year rate plan that includes a final year rate adjustment effective January 1, 2023. Some issues RPU has identifiedfordetermining future revenue requirements and designing rates include: Changing Industry and Regulatory Requirements–The impacts of customer conservation, drought mandates, weather, and treatment requirements. Operating and Infrastructure Costs –The costs of production, transmission, distribution, and funding for capital improvements to meet the WaterUtility’s aging infrastructure needs are all components of rates. These components will be analyzed in a comprehensive cost of service analysis to determine current and forecasted overall revenue requirements.