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04-08-2024 BPU
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04-08-2024 RPT 05
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04-08-2024 BPU AGENDA
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WATER ENERGY LIFE <br />CITY OF <br />RjVEIZSIDE <br />lag <br />PUBLIC UTILITIES <br />RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />BOARD OF PUBLIC UTILITIES <br />DATE: APRIL 8, 2024 <br />SUBJECT: THIRD AMENDMENT TO THE PROFESSIONAL CONSULTANT SERVICES <br />AGREEMENT FOR WATER COST OF SERVICE ANALYSIS AND RATE DESIGN <br />WITH CAROLLO ENGINEERS, INC. OF RIVERSIDE, CALIFORNIA — INCREASE <br />CONTRACT AMOUNT BY $165,950 FOR A REVISED TOTAL CONTRACT <br />AMOUNT OF $380,782 <br />ISSUE: <br />Approve a Third Amendment to the Professional Consultant Services Agreement for the Water <br />Cost of Service Analysis and Rate Design with Carollo Engineers, Inc., of Riverside, California, <br />increasing the contract amount by $165,950 for a total revised contract amount of $380,782. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that the City Council: <br />1. Approve a Third Amendment to the Professional Consultant Services Agreement for Water <br />Cost of Service Analysis and Rate Design with Carollo Engineers, Inc., of Riverside, <br />California, increasing the contract amount by $165,950 for a revised total contract amount <br />of $380,782; <br />2. Amend the Professional Consultant Services Agreement for Water Cost of Service <br />Analysis and Rate Design to exercise the option to extend the term of the agreement to <br />December 31, 2025; and <br />3. Authorize the City Manager, or designee, to execute the Third Amendment, including <br />making minor and non -substantive changes. <br />BACKGROUND: <br />On March 14, 2022, the Board of Public Utilities (Board) approved the Professional Consultant <br />Services Agreement (Agreement) with Carollo Engineers, Inc., of Riverside, California, (Carollo), <br />for the purpose of conducting a Water Cost of Service Analysis and Rate Design Project ("the <br />Project") for Riverside Public Utilities. The Project provided a comprehensive review of all rate <br />schedules, forecast of future revenue requirements, equitable allocation of costs among customer <br />classes. The First and Second Amendments to the Agreement were required for additional cost <br />of service and rate design analysis with the Second Amendment being approved by City Council <br />on February 21, 2023. The work was a coordinated effort between RPU staff and Carollo. The <br />results of the Project were included in 2023 Water Cost of Service and Rate Design Study dated <br />
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