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HomeMy WebLinkAboutAddendum - 1Docusign Envelope ID: 72443D06-96AD-4249-80E0-4383C1044DAF AMENDMENT NO. 1 TO AGREEMENT FOR 2024 COMPREHENSIVE RATE STUDY AND RECOMMENDATION FOR SYSTEM DEVELOPMENT CHARGES FOR WATER, WASTEWATER, AND SURFACE WATER UTILITIES THIS AMENDMENT, dated for reference purposes only as March 20, 2025, is by and between the City of Renton (the "City"), a Washington municipal corporation, and KU Financial Consulting ("Consultant"), a registered Washington Sole Proprietorship. The City and the Consultant are referred to collectively in this Amendment as the "Parties." Once fully executed by the Parties, this Amendment is effective as of the last date signed by both parties. Whereas, the City engaged the services of the Consultant under Agreement CAG-24-068, dated January 31, 2024, to provide necessary services for the 2024 Comprehensive Rate Study and Recommendation for System Development Charges for Water, Wastewater and Surface Water Utilities (referred to herein as the "Agreement"); Whereas, the Parties wish to amend the Agreement to change the scope of work, change the time for performance, and change the compensation in order to complete the 2024 comprehensive rate study, including the additional scope of work for the water utility's cost of service analysis, rate structure design alternatives, and wholesale rate analysis. NOW THEREFORE, It is mutually agreed upon that CAG-24-068 is amended as follows: 1.Scope of Work: Section 1, Scope of Work, is amended to add Work and modify the Work as specified in Exhibit A-1, which is attached and incorporated herein. 2.Time of Performance: Section 3, Time of Performance, is amended pursuant to the schedule(s) set forth in Exhibit C-1. All Work shall be performed by no later than March 31, 2026. 3.Compensation: Section 4, Compensation, is amended so that the maximum amount of compensation payable to Consultant is increased by $39,990 from $141,648 to $181,638, plus any applicable state and local sales taxes. The additional compensation shall be paid based upon Work actually performed according to the rate(s) or amounts specified in Exhibit B-1, which is attached and incorporated herein. CAG-24-068, Adden #1-25 Docusign Envelope ID: 72443D06-96AD-4249-80E0-4383C1044DAF 4.All terms of the Agreement not explicitly modified herein shall remain in full force and effect and such terms shall apply to Work performed according to this Amendment as if fully set forth herein. IN WITNESS WHEREOF, the Parties have voluntarily entered into this Amendment as of the date last signed by the Parties below. CITY OF RENTON GDocuSigned by: By:�8�1���8 �:�tucha Martin Pastucha Public Works Administrator 4/2/2025 I 2:05 PM PDT Date Approved as to Legal Form By: ________ _ Shane Moloney Renton City Attorney ContractTemplate Updated 06/17/2021 PAGE 2 OF 7 CONSULTANT By(E�J�µ;� Karyn o nson President 3/19/2025 2:33 PM EDT Date Approved by Cheryl Beyer via email 3/19/2025 Docusign Envelope ID: 72443D06-96AD-4249-80E0-4383C1044DAF EXHIBIT A-1 -SCOPE OF WORK The following Scope of Work identifies additional Water Utility tasks to be performed for the City of Renton's Comprehensive Water, Wastewater and Surface Water Rate and SDC Study for the 2025/2026 budget cycle. Task 11 Project Management Additional project management is required for the extended duration and expanded scope of work outlined in Amendment 1. This Involves invoicing, status reporting, and regular communication with the City's project manager. Task 5 -Wholesale Water Rates The wholesale water rate analysis calculates rates for the Skyway Water & Sewer District over a two-year budget cycle. Wholesale water rates for the 2025/2026 budget cycle were calculated and adopted by City Council under the initial scope of services. The District requested an extended forecast covering a six-year period to assist with rate planning. This requires restructuring the wholesale rate model to include an additional four years of analysis and projecting wholesale's share of the following key rate-setting parameters: •Total system water usage, average day, and max day demand •Total water system infrastructure assets •Operating and maintenance expenses •Debt service •Capital-related costs •Calculation of annual wholesale rate components and total water usage charge Task 61 Cost of Service Analysis The water cost of service analysis adhered to the methods established in the prior comprehensive rate study and was subsequently reviewed by City staff. Feedback from City staff indicated that adjustments to certain allocation assumptions were necessary to align with water system planning criteria, as well as City practices and policies. This requires the following additional services: •Enhance the methodology applied in the prior comprehensive rate study to allocate pumping, storage, and pipe assets to different service functions. This refinement aligns with the 2021 Water System Plan and adheres to best practices in rate-setting. •Update the methodology applied in the prior comprehensive rate study for distributing public fire protection costs among single-family, multifamily, and commercial customers. This revision aligns with the City's policies and practices concerning fire flow requirements, encompassing both gallons per minute and duration. •Evaluate a revised cost allocation methodology that recovers capacity-related costs from the private fire class. •Update cost of service results for each customer class. PAGE 3 OF 7