Title
Resolution to Approve a Professional Services Agreement with Exeter Associates, Inc. for Consulting Services Related to Development of a Cost of Service Study and Rates for the Sustainable Energy Utility ($312,489.27)
Memorandum
Staff are seeking approval of a Professional Services Agreement (PSA) with Exeter Associates, Inc. in an amount not to exceed $312,489.27 for professional consulting services to develop a cost of service study and rates for the Sustainable Energy Utility (SEU).
City ordinance ORD-25-07, which established the SEU, requires "the Director [to] recommend to the City Council rates and other charges for the provision of A2SEU services." The development of SEU rates is an essential milestone for the SEU to be able to enroll interested customers and to seek financing for the SEU's ongoing operations.
Utility ratemaking requires specialized and technical expertise as well as strategic insight. In September 2025, the City published a Request for Proposals, RFP #25-44, seeking cost of service and rate development services. The services are requested to proceed in three phases, with the first two including specific tasks and deliverables due in March 2026 and July 2026, and the third phase including ongoing support on an as-needed basis through July 2029.
Responses to RFP #25-44 were due in October 2025, and five firms submitted proposals for consideration. Upon review by an internal steering committee including representatives from the SEU, Office of Sustainability and Innovations, Finance, and Attorney's Office, four firms had their fee proposals opened, and three were selected for interviews. Upon consideration of the qualifications and skills, previous experience, proposed workplan, and fee proposals, the steering committee recommended moving forward with Exeter Associates, Inc.
While Staff worked carefully to identify rate-making needs in the RFP, given the novel nature of the SEU, we recognize that there is some risk that during the...
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