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File #: 21-159    Version: 1 Name:
Type: Consent Calendar Status: Agenda Ready
File created: 1/20/2021 In control: Council and Authorities Concurrent Meeting
On agenda: 2/23/2021 Final action: 2/23/2021
Title: Action on Amendment No. 2 to the Agreement with Black & Veatch Management Consulting, LLC for the Annual Water, Sewer, & Recycled Water Rate Studies
Attachments: 1. Original Agreement with Black & Veatch Management Consulting, LLC, 2. Amendment No. 1 to the Agreement for Service with Black & Veatch Management Consulting, LLC, 3. Amendment No. 2 to the Agreement for Services with Black & Veatch Management Consulting, LLC
REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 to the Agreement with Black & Veatch Management Consulting, LLC for the Annual Water, Sewer, & Recycled Water Rate Studies

Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
Rates charged to Santa Clara residents and businesses for water, sewer, and recycled water services are approved by Council on an annual basis following technical rate studies and a public hearing process. The Water & Sewer Utilities Department makes recommendations on those rates based on the City's ability to provide high quality services, support capital improvements, and maintain adequate reserve balances.

In December 2017, the City entered into an agreement (Attachment 1) with Black & Veatch Management Consulting, LLC to assist staff develop rate and capacity fee study reports to support the recommendation on rate. The agreement was the result of a competitive Request for Proposals (RFP) process. Under the agreement, Black & Veatch examines historical and current financial reports, forecasts cost items over the study period, reviews capital improvement programs, performs cost of service analysis, develops cash flow analyses, and designs rates that are fair and equitable and meet regulatory requirements.

The initial rate study completed by Black & Veatch was presented to Council at a Study Session on April 22, 2018, and the recommended rates were adopted by Council at a Public Hearing on June 12, 2018, with the rates effective July 1, 2018. Updates to the rate study were presented at the April 21, 2019 and June 23, 2020 Council meetings, with the rates effective July 1, 2019 and July 1, 2020, respectively, pursuant to Amendment No. 1 to the agreement (Attachment 2).

The agreement expired on June 30, 2020. The purpose of this report is to request authorization to reinstate the agreement and increase the maximum compensation under the agreement for Black & Veatch to update...

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