TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon , Finance Director
DATE: February 28, 2025
SUBJECT: APPROVAL OF CONTRACT AMENDMENT WITH RAFTELIS
FINANCIAL CONSULTANTS, INC
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
Well-Maintained Infrastructure
BACKGROUND/DISCUSSION
On November 13, 2024, the City Council approved a professional services agreement with Rafetelis for a Sewer Rate Study at a cost of $52,949. The original scope did not cover the implementation of newly enacted Assembly Bill 2257.
The California Constitution specifies various requirements with respect to the levying of assessments and property-related fees and charges by a local agency, including notice, hearing, and protest procedures, depending on the character of the assessment, fee, or charge. Current law, known as the Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for local jurisdictions to comply with these requirements. This bill now prohibits, if a local agency complies with specified procedures, a person or entity from bringing a judicial action or proceeding alleging noncompliance with the constitutional provisions for any new, increased, or extended fee or assessment, as defined, unless that person or entity has timely submitted to the local agency a written objection to that fee or assessment that specifies the grounds for alleging noncompliance, as specified. This bill now provides that a local agency response to the timely submitted written objections shall go to the weight of the evidence supporting the agency’s compliance with the substantive limitations on fees and Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
assessments imposed by the constitutional provisions. The bill also prohibits an independent cause of action as to the adequacy of the local agency’s responses.
It is recommended that the City implement AB 2257 as part of the Sewer Rate Study. Rafetelis has proposed an amendment to support the implementation of AB 2257, with a not-to-exceed amount of $7,208. This amendment would increase the total contract amount to $60,157.
FISCAL IMPACT & PROCUREMENT REVIEW
A budget adjustment of $7,208 will be needed to cover the cost of implementing AB2257.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve the contract amendment in the amount not-to-exceed $7,208. Staff also recommends the approval of budget adjustments needed in the General fund to cover the cost of the amendment.
If Council agrees with staff’s recommendation a motion would be:
“I move to authorize the City Manager to execute the contract amendment with Raftelis, in the amount not to exceed $7,208 and approve the FY 24/25 budget amendment to appropriate $7,208 in the General Fund.”
ATTACHMENTS
1. Raftelis Proposal