Title
Consider a resolution authorizing the Mayor to execute a Professional Consulting Services Agreement with Raftelis Financial Consultants, Inc. related to support services connected to the 2015 and 2017 Wholesale Utility Rate Studies.
Body
In 2014, the City initially contracted with Raftelis Financial Consultants, Inc. (RFC) to review the water and wastewater rates that the City charges to both our retail and wholesale customers. At that time, the City planned on staying on a three-year schedule to update the water and wastewater rates to ensure that our rates are set to recover the cost of providing these services.In order to stay on this schedule, it was time to review the water and wastewater rates in 2017. That professional services work was completed. After completion of the rate study and adoption of the new rates, five of the Wholesale Customers which includes: Paloma Lake MUD Nos. 1 & 2, Williamson County MUD Nos. 10 & 11 (Terravista), and Vista Oaks MUD, collectively started to contest the adopted rates. This contract will authorize RFC, Inc. to provide support services to the City in discussions with this wholesale customer group. Tasks under this contract may include corresponding or meetings with the group to discuss how the adopted rates were calculated using the rate model and advising or representing the City in a rate case at the Public Utilities Commission, if necessary. This contract will be billed based on time and materials expended and not-to-exceed the contract amount.
Cost: $150,000
Source of Funds: Utility Fund