01-23-2023 BPU RPT 04 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 23, 2023 SUBJECT: SECOND AMENDMENT TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR WATER COST OF SERVICE ANALYSIS AND RATE DESIGN WITH CAROLLO ENGINEERS, INC. OF RIVERSIDE, CALIFORNIA — INCREASE CONTRACT AMOUNT BY $40,000 FOR A REVISED TOTAL CONTRACT AMOUNT OF $214,832 ISSUE: Approve a Second Amendment to the Professional Consultant Services Agreement for the Water Cost of Service Analysis and Rate Design with Carollo Engineers, Inc. of Riverside, California, increasing the contract amount by $40,000 for a total revised contract amount of $214,832. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve a Second Amendment to the Professional Consultant Services Agreement for Water Cost of Service Analysis and Rate Design with Carollo Engineers, Inc., of Riverside, California, increasing the contract amount by $40,000 for a total revised contract amount of $214,832. BACKGROUND: On March 14, 2022, the Board of Public Utilities (Board) approved the Professional Consultant Services Agreement (Agreement) with Carollo Engineers, Inc., of Riverside, California, (Carollo), for the purpose of conducting a Water Cost of Service Analysis and Rate Design Project ("the Project") for Riverside Public Utilities. The Project will provide a comprehensive review of all rate schedules, forecast of future revenue requirements, equitable allocation of costs among customer classes. The Project phases include: Phase 1 — Cost of Service Analysis Phase 2 — Rate Trends Study Phase 3 — Rate Design Phase 4 — Recycled Water Rate Design Recommendation Phase 5 — Budget Based Rate Design Recommendation and Implementation Plan The work for the five phases is a coordinated effort between RPU staff and Carollo. The results of the Water Rate Trends Study were presented to the Board on August 8, 2022. Current tentative presentation dates to the Board for the Cost of Service and Rate Design are March through May 2023.