Title
Charlotte Water Rate Model Financial Consulting Services
Action
Action:
Approve contract amendment #1 for $120,000 to Arcadis G&M of North Carolina, Inc. for analytical and financial support for Charlotte Water’s rate model.
Body
Staff Resource(s):
Barry Shearin, Charlotte Water
Explanation:
§ Arcadis G&M of North Carolina, Inc. was selected in 2010 through a Request for Qualifications process to conduct a study for Charlotte Water focused on updating the department’s rate methodology. The study resulted in the rate model methodology currently used by Charlotte Water. This contract, in the amount of $268,241, provided provisions for annual model updates.
§ In 2014, Charlotte Water issued a new contract in the amount of $40,000 to Arcadis G&M of North Carolina, Inc. to provide financial consulting support needed to update the rate model and prepare annual rate recommendations.
§ Contract amendment #1 adds $120,000 to the existing 2014 contract and allows Arcadis G&M of North Carolina, Inc. to assist Charlotte Water in updating the current rate model for budgeting purposes through the preparation of Charlotte Water’s Fiscal Year 2018 budget. This amendment also allows Charlotte Water time to develop a solicitation and contract to address Charlotte Water’s long-term rate model update needs.
§ At this time, Charlotte Water would incur significant additional costs to use a different firm who is unfamiliar with the rate model.
§ The new value of this contract including the amendment is $160,000.
Charlotte Business INClusion:
No subcontracting goal was established for this amendment because there are no subcontracting opportunities (Part D: Section 6 of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: Charlotte Water Operating Budget