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Raftelis Financial Consultants, Inc. A2016-068 A1CITY OF CHINO HILLS AMENDMENT NO. 1 TO AGREEMENT NO. A2016-068 BETWEEN THE CITY OF CHINO HILLS AND RAFTELIS FINANCIAL CONSULTANTS, INC. THIS AMENDMENT No. 1 to Agreement No. A2016-068, dated April 12, 2016, is entered into in the State of California by and between the City of Chino Hills, a California general law municipal corporation, hereinafter called "City", and Raftelis Financial Consultants, Inc., hereinafter called "Contractor". Amend Agreement A2016-068 as follows: 1. Add Meetings and Conferences to Tasks 1-5 with the attached Exhibit A (Scope of Work) 2. Add Financial/Rate Analysis with the attached Exhibit B (Compensation) 3. Increase the annual not -to -exceed amount by $61,475 for a total contract amount as follows: Original Agreement: $ 109,605 Amendment No. 1 61,475 Total Revised Contract Amount (not to exceed): $ 171,080 All other provisions of the agreement remain in effect. IN WITNESS WHEREOF, the City Council of the City of Chino Hills has caused this Amendment 1Vo. 1 to Agreement No. A2016-068 to be subscribed by its duly authorized._ officers, in its behalf, on April 25, 2017 and the said party of the second part has signed \ this Agreement. RAFTELIS FINANCIAL CONSULTANTS, INC. B NAME TITLE IN 11VA6109al1!tell al1111-"1 RAY MARQUEZ, MAYOR APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY Exhibit A Scope of Services Task 1: Meeting with City Attorney and City Manager RFC will meet with the City Attorney and City Manager to discuss the results of the study, the proposed rates and how they meet the requirements of Proposition 218. Team will discuss the upcoming rate approval process in order to prepare Staff for the necessary steps for rate implementation. Meeting(s): One (1) meeting with City Attorney and City Manager Deliverables: Presentation materials Task 2: Update the Model with FY 2017 Budget, FY 2018 Budget and 2017 usage As requested by the City, RFC will update the financial model incorporate FY 2017 and FY 2018 Budget to more reflective of current conditions. In addition, RFC will do usage analysis on the FY 2017 usage data after the end of FY 2017. By incorporating these elements into the current model, the City will have a more current financial plan, and Cost of Service analysis. RFC will also incorporate updated inflationary, growth, and demand factor assumptions, as necessary. Meeting(s): None Deliverables: Updated Financial Plan Model with updated FY 2017 Budget, FY 2018 Budget and 2017 usage Task 3: Rate Workshops RFC will conduct up to three (3) half-day Rate Workshops with City Staff/Management. RFC will present the proposed rates and discuss the benefits and challenges associated with each proposed rate alternative as demonstrated through the Water Rate Model. Changes and suggestions from Staff will be incorporated into the analyses. Meetings)/Conference(s): Up to three (3) workshop with City Staff Deliverable(s): Presentation materials Task 4: Develop Financial Strategies for Dealing with Coverage Ratio RFC will work with the City to develop strategies to avoid technical default. The City has a high ratio of debt to operating revenues, currently, and, due to the fact that the City will not have billing software capable of administering water budget rates until 2018, the City may run into issues with diminishing coverage ratios. RFC will work with the City to ensure that it remains in compliance with bond its bond covenants. Meetings)/Conference(s): Up to two (2) meetings to discuss and determine financial strategies Deliverable(s): Presentation Materials Task 5: Develop Billing System Requirements RFC will work with City Staff to determine the technical requirements needed to implement the City's proposed water budget based rate structure. This process will involve determining what information the City needs to have for each account, what values the City will use as global values, and what calculations are needed to determine each account's monthly indoor and outdoor water budget. RFC will summarize these requirements in an Excel workbook. This workbook will also include an example of the calculations used to determine both indoor and outdoor water budget, Meetings)/Conference(s): Two (2) conference calls Deliverable(s): Billing System Requirements in Excel 2016 Exhibit B Scope of Services for Additional Financial / Rate Analysis City n/'Chino Hills Fees RFC proposes to complete the scope of work outlined above on a time -and -materials basis with a not -to -exceed cost of $61,475. The following work plan provides a breakdown of the estimated level of effort required for completing each task described and the hourly billing rates for the personnel scheduled to complete the project. 1 MeetfngWlth City Attorney and City Manager 2 Model Update 3 Rate Workshops 4 develop Financial Strategies for Meeting Coverage Ratio 5 Develop Billing system Requirements e Sanjay Gaur • Project Manager FC - Financial Consultants $280 $175 $75 1 12 14 5 31 $6,815 is 60 78 $16,320 3 30 40 70 $17,060 2 30 40 70 516,740 8 12 $4,540. 2'J,05()