1 440360v2
SECOND AMENDMENT TO AGREEMENT
THIS SECOND AMENDMENT TO AGREEMENT (Amendment) made and entered into as of this ____ day of _______________, 2025, (Effective Date) amends the Agreement entered into between the City of Fresno , a California municipal corporation ( City), and Pavletic Consulting LLC, a Texas Domestic Limited Liability Company, (Consultant).
RECITALS
WHEREAS, the City and Consultant, previously Municipal Financial Services, entered into an agreement on February 1, 2022, (Agreement) to provide consulting services for professional utility rate plan consulting services for Five- Year Rate Plan – Water and Wastewater (Project); and
WHEREAS, the City and Consultant entered into the First Amendment to Agreement on December 16, 2024, to extend the term of the Agreement to June 30, 2025, to allow the Consultant to complete the scope of work; and WHEREAS, the City and Consultant desire to extend the term of the Agreement to June 30, 2026, and to increase the compensation by $ 75,000 to complete the scope of work, for a total contract amount of $219,000; and
WHEREAS, since execution of the Agreement, Consultant has changed its business organization. Consultant previously operated as Municipal Financial Services , a sole proprietorship but has since formed Pavletic Consulting LLC, a Texas Domestic Limited Liability Company; and
WHEREAS, with entry into this Agreement, the Consultant agrees it has no claim, demand, or dispute against the City.
AGREEMENT
NOW, THEREFORE, the parties agree that the aforesaid Agreement be amended as follows:
1. The recitals to this Amendment are incorporated and made a part of the Agreement.
2. Section 2 of the Agreement is amended to read as follows:
“Term of Agreement and Time for Performance. This Agreement shall be effective from the date first set forth above (Effective Date) and shall continue in full force and effect through June 30, 2027, subject to any earlier termination in accordance with this Agreement. The services of the Consultant as described in Exhibit A are to commence upon the Effective Date and shall be completed in a sequence assuring expeditious completion, but in any event, all such services shall be completed prior to expiration of this Agreement.”
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3. Section 3(a) of the Agreement is amended in its entirety to read as follows:
“(a) The Consultant’s compensation for satisfactory performance of all services required or rendered pursuant to this Agreement shall be a total fee not exceed Two Hundred Thousand Three Hundred Twenty dollars ($219,000), paid on the basis of the rates set forth in the schedule of fees and expenses contained in Exhibit A and Exhibit A1.”
4. Except as otherwise provided herein, the Agreement entered into by the City and the Consultant on February 1, 2022, remains in full force and effect. [Signatures follow on the next page.]
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IN WITNESS WHEREOF, the parties have executed this Amendment at Fresno, California, the day and year first above written.
CITY OF FRESNO,
a California municipal corporation
By:
Brock D. Buche, PE, PLS
Director of Public Utilities
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Jennifer M. Quintanilla Date
Senior Deputy City Attorney
ATTEST:
TODD STERMER, MMC
CITY Clerk
By:
Deputy Date
PAVLETIC CONSULTING, LLC, a Texas
Domestic Limited Liability Company
By:
Name: Thomas Pavletic
Title: Owner
(If corporation or LLC., Board Chair,
Pres. or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO,
Treasurer, Secretary or Assistant
Secretary)
Addresses:
CITY:
City of Fresno
Attention: Paul Amico
Assistant Director of Public Utilities
1626 E Street
Fresno, CA 93706
Phone: (559) 621-8612
E-mail: [email protected]
CONSULTANT:
Pavletic Consulting LLC
Attention: Tom Pavletic,
Owner
2014 Mann Parkway
Celina, TX 75009
Phone: (510) 439-6264
E-mail: [email protected]
Attachments:
Exhibit A-1
Docusign Envelope ID: D813AE6B-3D60-4BF6-B7F2-5A8BD6FBEB2D 4/17/2025
4/17/2025
Pavletic Consulting LLC 2014 MANN PKWY ▪ CELINA, TX 75009 ▪ 510 439 6264 March 27, 2025
Mr. Brock Buche
Director of Public Utilities
City of Fresno
2600 Fresno Street
Fresno, CA 93721
Subject: Request for Additional Time and Compensation for Performing Consulting Services for the Water and Wastewater Five-Year Rate Plans
Dear Mr. Buche:
At the City’s request, Pavletic Consulting LLC is submitting an updated scope and budget for completing Water and Wastewater Five-Year Rate Plans as described in the February 1, 2022, Agreement for performing consulting services for the Water and Wastewater Five-Year Rate Plans, previously amended by the First Amendment to Agreement dated December 16, 2024.
The purpose of the second amendment is to add time and compensation for additional work requested by the City to perform consulting services for the Water and Wastewater Five-Year Rate Plans for an additional 24 months. The First Amendment to Agreement extended the time for performance from December 31, 2024, to June 30, 2025. The City and Pavletic Consulting LLC agree that services requested by the City may be extended to June 30, 2027.
Compensation for additional work required by the City to perform consulting services is estimated as shown in the tables below. The water component totals $32,960.00. The wastewater component totals $42,040.00.
If you have any questions, please call me at (510) 439-6264 (cell phone).
Very truly yours,
Tommy Pavletic
Pavletic Consulting LLC, Owner
W at e r Task s
Budget 1 2 3 4 5 6 Total
Original 56.00 78.00 124.00 96.00 82.00 39.00 475.00
Added 0.00 8.00 56.00 66.00 30.00 46.00 206.00
Adjusted 56.00 86.00 180.00 162.00 112.00 85.00 681.00
W ast e wat e r Task s
Budget 1 2 3 4 5 6 Total
Original 36.00 72.00 116.00 80.00 82.00 39.00 425.00
Added 0.00 20.00 75.75 91.00 30.00 46.00 262.75
Adjusted 36.00 92.00 191.75 171.00 112.00 85.00 687.75
Legend
Task 1—Evaluate Cost Allocation Methods and Rate Structures Task 4—Allocate Costs and Develop Rate Alternatives Task 2—Develop Customer Use Characteristics Task 5—Prepare Preliminary, Draft and Final Reports Task 3—Develop Financial Plan and Revenue Requirements Task 6—Prepare Presentations and Attend Meetings B udg e t W at e r W ast e wat e r Tot al
Hours Hourly Rate Budget Hours Hourly Rate Budget Hours Hourly Rate Budget Original 475.00 $160.00 $76,000.00 425.00 $160.00 $68,000.00 900.00 $160.00 $144,000.00 Added 206.00 $160.00 $32,960.00 262.75 $160.00 $42,040.00 468.75 $160.00 $75,000.00 Adjusted 681.00 $160.00 $108,960.00 687.75 $160.00 $110,040.00 1,368.75 $160.00 $219,000.00 EXHIBIT A-1
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