REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: PAUL AMICO, PE, Assistant Director
Department of Public Utilities - Administration
SUBJECT
Title
Approve the Second Amendment to the Consultant Services Agreement with Pavletic Consulting LLC., (formerly Municipal Financial Services, a sole proprietorship) to extend the term through December 31, 2027, and increase the compensation by $75,000, for a total contract amount not to exceed $219,000, and authorize the Director of Public Utilities, or designee, to execute the Second Amendment to the Consultant Services Agreement. (Citywide)
Body
RECOMMENDATION
Staff recommends that City Council approve the Second Amendment to the Consultant Services Agreement (Amendment) with Pavletic Consulting LLC., (formerly Municipal Financial Services, a sole proprietorship) to extend the term of the agreement through June 30, 2027, and increase the compensation by $75,000, for a total contract amount not to exceed $219,000, and authorize the Director of Public Utilities, or designee, to execute the Amendment.
EXECUTIVE SUMMARY
Routinely assessing and evaluating revenue and expenditure projections, and specifically analyzing the rates charged for utility service, is vital to prevent revenue shortfalls that could lead to disruptions or cuts in service. Common practice is for municipalities to evaluate rate-generated revenue annually to determine whether and when rate updates are needed to cover increases in operating costs. The City's practice is to evaluate revenues and expenses and the adequacy of the current rate structure annually during the budget process. The Department of Public Utilities (DPU) executed an agreement with Municipal Financial Services, a sole proprietorship - now Pavletic Consulting LLC., - (Consultant) in 2022 to provide rate analysis services for the Water and Wastewater Divisions. The City and Consultant entered into the First Amendment to Agre...
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