GUSTINE — The Gustine City Council on Tuesday was expected to hear a proposal to authorize the city manager to execute Addendum No. 2 with Harris & Associates, allowing the firm to resume and complete the city’s water and sewer rate study.
Finance Director Jenny Morrison said the addendum is needed to update the contract and incorporate newly completed water and sewer master plans — documents that now contain the infrastructure, system and service‑area data required for a full rate analysis. Donna Segura of Harris & Associates is scheduled to attend the meeting to explain the firm’s process and justify the updated costs.
The city originally hired Harris & Associates in November 2023 to complete a new rate study, as the prior study was set to expire in June 2024. But early in 2024, staff paused the work to allow time to update infrastructure maps, master plans and capital improvement planning. Because of that pause, no rate increase took effect on July 1, 2024.
An earlier contract amendment issued in April 2025 attempted to provide updated information, but the master plans were still unfinished at the time. With both plans now finalized, staff says the rate study can proceed “in the most optimal way” and fully reflect current system conditions and future capacity needs.
The updated contract totals $85,830 — up from the original $60,000 — due to fee escalation and the expanded scope. Addendum No. 2 replaces the previous addendum and adds $25,830 to the agreement. To date, the city has paid $32,847.50, leaving $52,982.50 remaining. The cost has already been budgeted in the city’s 2026–27 fiscal year from the water and sewer enterprise funds.
The study will cover rates from July 1, 2027 through June 30, 2032. Gustine’s water and sewer rates have remained unchanged since July 1, 2023.
No additional community outreach is required at this stage, though public notification and engagement will occur during the Proposition 218 rate‑adjustment process.
The item aligns with Strategic Plan Goal No. 4, which focuses on long‑term financial stability and sustainable cost management.
Staff is recommending the council adopt a resolution authorizing the city manager to execute Addendum No. 2.
