FOR: Water Subcommittee Meeting [January 24, 2024]
TO: Honorable Water Subcommittee Members
APPROVAL: Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
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Request that the Water Subcommittee provide feedback on Contract Amendment No. 1 with FG Solutions in the amount of $5,480 for the City’s Water and Wastewater Rate Study.
(ACTION)
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BACKGROUND:
On April 11, 2023, the City Council and Rialto Utility Authority Board awarded a sole source contract to FG Solutions, LLC, to provide a Water and Wastewater Rate Study for an amount not to exceed $138,297.
ANALYSIS/DISCUSSION
One of the tasks identified in the scope of work for the Water and Wastewater Rate Study included a series of Presentations and Meetings. The Professional Services Agreement (PSA) identified and budgeted for several Water Subcommittee, Utilities Commission, and City Council meetings to present the Revenue Analysis and Rate Study results and staff and consultant communication in preparation for those meetings. However, during the Rate Study, staff identified necessary additional services not contemplated in the April 11, 2023, PSA but were instrumental in determining several comprehensive rate scenarios to proceed with setting the Proposition 218 Hearing for February 27, 2024.
Additional services include assisting with the City’s capital project financing strategy development, which included multiple remote and in-person meetings with staff, the City’s legal counsel, financial advisor, and joint meetings with staff and Rialto Water Services (RWS). Also, for preparing documents for the City/RUA’s and RWS labor reset financial projections scheduled to begin in mid-2024.
Amendment No. 1 adds $5,480 to the Task 9 Fee Estimate, as shown in the table below and ATTACHMENT 1. The fee estimates for the other tasks remain unchanged.
FINANCIAL IMPACT
Operating Budget Impact
The original contract is for $138,297. As of December 2023, the amount invoiced to date is $119,553, with $18,744 remaining on the Purchase Order. The remaining funds are earmarked to complete Phase 2, Task 8: Final Draft and Final Reports, and Task 9: Meetings and Presentations. All costs are billed at the time and materials rate.
Funds are available in water and wastewater contract services operating accounts, with funds split based on the number of accounts served. Water accounts consist of approximately 12,500 services (37%), which accounts for $2,027.60 of Amendment No. 1 costs, and wastewater has approximately 21,470 services (63%), which accounts for $3,452.40 of Amendment No. 1 costs. The total Professional Services Amendment No. 1 is proposed to be adjusted to a total not-to-exceed cost of $143,777.
Capital Improvement Budget Impact
The proposed action will not affect the Capital Improvement Budget.
RECOMMENDATION:
Request that the Water Subcommittee provide feedback on Contract Amendment No. 1 with FG Solutions in the amount of $5,480 for the City’s Water and Wastewater Rate Study.