Item 4.3 - Award of Contract to Raftelis Financial Consultants, Inc. to Conduct a Comprehensive Cost of Service and Water and Sewer Rate StudyCity of Poway
(EDCOUNCIL AGENDA REPORT
DATE: March 19, 2019
TO: Honorable Mayor and Members of the City Council
FROM: Wendy Kaserman, Assistant City Manager
CONTACT: Donna Goldsmith, Director of Finance�—
(858) 668-4411 or dgoldsmith(a-)poway.org
APPROVED
0
APPROVED AS AMENDED
❑
(SEE MINUTES)
DENIED
❑
REMOVED
❑
CONTINUED
RESOLUTION NO.
Jessica Parks, Senior Management Analyst, Public Works__jq
(858) 668- 4703 or ioarksna poway.org
SUBJECT: Award of Contract to Raftelis Financial Consultants, Inc. to Conduct
a Comprehensive Cost of Service and Water and Sewer Rate Study
and Provide Ongoing Consultant Support for Annual Water and
Sewer Rate Calculations
Summary:
As part of the City Council discussion at the January 8, 2019 Water and Sewer Rate workshop,
the Council expressed an interest in conducting a new water and sewer rate study prior to the
2020 rate setting process. The City Council recognized it has been a number of years since the
last rate study. They indicated the new study should include an evaluation of alternative rate
structures and the impacts on different groups of ratepayers.
Based on direction provided by the City Council, on February 4, 2019, the City issued a Request
for Proposals (RFP) for a Comprehensive Cost of Services and Water and Sewer Rate Study and
ongoing consultant support for annual water and sewer rate calculations.
To reach as many potential proposers as possible, the RFP was published on the City's Website
and E -bid board. Additionally, staff sent the RFP to firms with expertise in these type of studies.
The City received two proposals from experienced, reputable firms. After evaluating both
proposals, staff is recommending the City Council award a contract to Raftelis Financial
Consultants, Inc. (Raftelis). Raftelis has done previous work for the City. In Fiscal Year (FY) 2006-
07, they were hired to evaluate alternative rate structures for residential sewer commodity rates.
Recommended Action:
Staff recommends that the City Council award a contract to Raftelis Financial Consultants, Inc. to
conduct a Comprehensive Cost of Service Study and Water & Sewer Rate Study and provide
Ongoing Consultant Support for Annual Water and Sewer Rate Calculations and authorize the
City Manager to execute all necessary documents associated with the agreement. The initial term
of the contract is three years with the option to extend for two additional one-year terms.
Discussion:
Council held a Water and Sewer Rate Workshop on January 8, 2019 to discuss the 2019
proposed water and sewer rates. At that time, the City Council directed staff to proceed with
1 of 55 March 19, 2019, Item #4.3
Water and Sewer Cost of Service Study
March 19, 2019
Page 2
soliciting proposals to hire a consultant to conduct a Water and Sewer Rate Cost of Service Study
(COSS) for the next rate-setting cycle.
The intent of the COSS is to assess and evaluate the City's current water and sewer rates and
potentially establish new rate structures(s) that will adequately balance the short and long-term
financial sustainability of the City's water and sewer enterprises. In addition, any proposed rate
structures should demonstrate that each ratepayer class is paying its proportionate share of costs
and meeting each utility's ongoing operating expenditures, capital improvement needs, fund
reserve policies, and regulatory requirements.
In addition to evaluating costs and alternative rate structures, there are other goals associated
with the study. A new study will provide the opportunity for current staff to be involved in the
collection of data and development of the rate model which will provide for a foundational level of
knowledge of the information feeding into the model, as well as an understanding of how the
model can be modified for different assumptions and scenarios. This is particularly important due
to recent retirements within the Finance Department and the loss of institutional knowledge
relative to the existing water and sewer model. The RFP specifically required that there be staff
training on the new model, as well as ongoing consultant support for annual water and sewer rate
calculations. The consultant will also work with staff to develop a simplified summary describing
how water and sewer rates are derived. This information will be used as part of the rate setting
process, as well as available on the City's website.
While the study will evaluate many cost factors, it is not a cost allocation study. As described
during the rate setting process, overhead and administrative costs are allocated across the
General Fund, Water and Sewer Funds and other funds. Cost allocations benefit the Water and
Sewer funds because ratepayers only pay for a portion of the administrative and overhead costs
associated with operating the utilities. Cost allocations are based on a previously completed study
and have been updated based on organizational changes.
Following Council direction at the January workshop, staff issued an RFP for a Comprehensive
Cost of Service and Rate Study on February 4, 2019. Two firms responded and submitted
proposals on the March 4, 2019 deadline.
Staff reviewed the two proposals and found them to be responsive and meeting the minimum
requirements of the RFP.
The table below shows the firms that submitted proposals and their respective bids for the initial
COSS and related work. The cost proposals also included optional tasks, as well as the costs of
providing annual support for water and sewer rate calculations following completion of the study.
COSS Proposals
Consultant Cost Proposal
FCS Group $125,120
Raftelis Financial Consultants, Inc. $112,490
Staff is recommending Raftelis be selected to conduct the COSS based on their submitted
proposal, expertise and results of their previous projects, as well as extensive experience
performing similar studies for agencies throughout California, particularly local water agencies.
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Water and Sewer Cost of Service Study
March 19, 2019
Page 3
Scope of Work:
The scope of work for this project includes:
1. Data collection and an evaluation of key information for each utility (water and sewer), to
understand the City's utility system, finances, customers, water and sewer usage
characteristics, and existing rate and fee structure.
2. Detailed analysis of the revenue requirements for the City's water and sewer funds,
including expenses for operations, debt, and capital projects.
3. Preparation of two and no more than five water and sewer rate models, including
calculation of the impact to rates and ratepayers with each model.
4. Models to be presented in Microsoft Office Excel that can be adapted for future uses.
5. Staff training on how to use the rate models and adjust inputs to run various scenarios.
6. Preparation of a detailed comprehensive report detailing finds and cost of service analysis.
7. Participation at staff level meetings, public workshops and council meetings.
8. Ongoing support for annual water and sewer rate calculations.
Project Timeline:
Once the contract is executed, staff will begin working with Raftelis to initiate the development of
the COSS. Raftelis is ready to begin work on the project immediately. The process is very time
consuming and the schedule is aggressive. Staff is anticipating an eight-month turnaround with
the following schedule:
Task Date
Kick-off Meeting and Data Gathering 04/2019
Financial Plan Development & Rate Design 05/2019
Preliminary Report Delivery to Staff 07/2019
Initial City Council Workshop 09/2019
Second City Council Workshop 11/2019
Final Report Delivery 11/2019
2020 Water and Sewer Rate Workshop* 01/2020
'As indicated in the attached proposal, Raftelis will participate in the Initial and Second City
Council workshops shown in the schedule above. Based upon direction provided by the City
Council at those workshops, staff will present the proposed rate information at the January 2020
Water and Sewer Rate Workshop prior to the initiation of any Proposition 218 process.
Environmental Review:
None.
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Water and Sewer Cost of Service Study
March 19, 2019
Page 4
Fiscal Impact:
The fiscal impact of awarding the contract to Raftelis to conduct a comprehensive water and
sewer rate study and provide ongoing support for calculating the annual water and sewer rates is
$191,610. This includes $112,490 in FY 2019-20 for the initial study and $19,780 per year in FY
2020-21 and FY 2021-22 for the annual updates included in the initial three-year term of the
agreement. Additionally, it includes $19,780 per year for FY 2022-23 and FY 2023-24 should the
City opt for the two additional one-year extensions provided for in the agreement.
The costs of the study and ongoing support will be charged equally to the Water and Sewer Funds.
Sufficient unappropriated fund balance is available in both the Water and Sewer Funds in
accounts 5100-89010 and 5200-89010. The cost of the study is not expected to impact rates
since fund balance will be used to cover the costs.
Public Notification:
None
Attachments:
A. Professional Services Agreement with Raftelis Financial Consultants, Inc.
Reviewed/Approved By: Reviewed By: Approved I
Wendy Kaserman Alan Fenstermacher Tina M. White
Assistant City Manager City Attorney City Manager
4 of 55 March 19, 2019, Item #4.3
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^—� City of Poway
STANDARD AGREEMENT FOR SERVICES
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This Agreement, entered into this 19th day of March, 2019 by and between the CITY
OF POWAY (hereinafter referred to as "City") and RAFTELIS FINANCIAL CONSULTANTS,
INC. (hereinafter referred to as "Consultant").
RECITALS
WHEREAS, City desires to obtain the services of a private consultant to perform a
Comprehensive Cost of Service and Rate Study of the Water Enterprise and the Sewer Enterprise
Fund, as well as providing ongoing annual support; and
WHEREAS, Consultant is a Financial and Rate consultant for water, recycled water and
wastewater utilities and has represented that Consultant possesses the necessary qualifications
to provide such services; and
WHEREAS, City has authorized the preparation of an agreement to retain the services of
Consultant as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN
CONSULTANT ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Consultant shall provide services as described in Exhibit "A" entitled "Special
Provisions" attached hereto and made a part hereof. Scope shall include Tasks 1-10 of the Cost
Proposal. At this time, Optional Services (Tasks 11 & 12) are not required.
2. Compensation and Reimbursement.
City shall compensate and reimburse Consultant as provided in Exhibit"A"entitled
"Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special
Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination
without cause shall be effective only upon 60-day written notice to Consultant. During said 60-
day period Consultant shall perform all consulting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this
Agreement, misrepresentation by Consultant in connection with the formation of this Agreement
or the performance of services, or the failure to perform services as directed by City. Termination
1
5 of 55 ATTACHMENT A March 19, 2019, Item #4.3
for cause shall be effected by delivery of written notice of termination to Consultant. Such
termination shall be effective upon delivery of said notice.
5. Confidential Relationship.
City may from time to time communicate to Consultant certain information to
enable Consultant to effectively perform the services. Consultant shall treat all such information
as confidential, whether or not so identified, and shall not disclose any part thereof without the
prior written consent of the City. Consultant shall limit the use and circulation of such information,
even within its own organization, to the extent necessary to perform the services. The foregoing
obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has
been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant,
hereafter disclosed in publicly available sources of information; (iii) is now in the possession of
Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully
disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof
has been or is rightfully authorized by that third party.
Consultant shall not disclose any reports, recommendations, conclusions or other
results of the services or the existence of the subject matter of this contract without the prior
written consent of the City. In its performance hereunder, Consultant shall comply with all legal
obligations it may now or hereafter have respecting the information or other property of any other
person, firm or corporation.
6. Office Space and Clerical Support.
Consultant shall provide its own office space and clerical support at its sole cost
and expense.
7. Covenant Against Contingent Fees.
Consultant declares that it has not employed or retained any company or person,
other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that
it has not paid or agreed to pay any company or person, other than a bona fide employee, any
fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or
resulting from the award or making of the Agreement. For breach of violation of this warranty,
City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct
from the Agreement price or consideration, or otherwise recover the full amount of such fee,
commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents
prepared or obtained under the terms of this Agreement shall be the property of City and shall be
delivered to City by Consultant upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Consultant shall not act as consultant or perform
services of any kind for any person or entity whose interests conflict in any way with those of the
City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and
the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use
its official position to influence in any way any matter coming before the City in which the
Consultant has a financial interest as defined in Government Code Section 87103. Consultant
. 6 of 55 2 March 19, 2019, Item #4.3
represents that it has no knowledge of any financial interests which would require it to disqualify
itself from any matter on which it might perform services for the City.
"Consultant" means an individual who, pursuant to a contract with a state or local
agency:
(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application,
certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided
it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to
which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines
for the City, or for any subdivision thereof; or
(B) Serves in a staff capacity with the City and in that capacity participates in making
a governmental decision as defined in the Political Reform Act and/or
implementing regulations promulgated by the Fair Political Practices Commission,
or performs the same or substantially all the same duties for the City that would
otherwise be performed by an individual holding a position specified in the City's
Conflict of Interest Code.
DISCLOSURE DETERMINATION:
1. Consultant/Contractor will not be "making a government decision" or
"serving in a staff capacity" as defined in Sections A and B above.
No disclosure required.
❑ 2. Consultant/Contractor will be "making a government decision" or "serving
in a staff capacity" as defined in Sections A and B above. As a result,
Consultant/Contractor shall be required to file a Statement of Economic Interest
with the City Clerk of the City of Poway in a timely manner as required by law.
Department Director
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted,
except as otherwise specifically provided herein, or to which City, in its sole discretion, consents
to in advance thereof in writing. Any assignment or subcontracting in violation of this provision
shall be void.
7 of 55 3 March 19, 2019, Item #4.3
11. Maintenance of Records.
Consultant shall maintain all books, documents, papers, employee time sheets,
accounting records, and other evidence pertaining to costs incurred and shall make such
materials available at its office at all reasonable times during the contract period and for three (3)
years from the date of final payment under this Agreement, for inspection by City and copies
thereof shall be furnished, if requested.
12. Independent Contractor.
At all times during the term of this Agreement, Consultant shall be an independent
contractor and shall not be an employee of the City of Poway. City shall have the right to control
Consultant only insofar as the results of Consultant's services rendered pursuant to this
Agreement; however, City shall not have the right to control the means by which Consultant
accomplishes such services.
13. Licenses, Permits, Etc.
Consultant represents and declares to City that it has all licenses, permits,
qualifications, and approvals of whatever nature that are legally required to practice its profession.
Consultant represents and warrants to City that Consultant shall, at its sole cost and expense,
keep in effect at all times during the term of this Agreement, any license, permit, or approval which
is legally required for Consultant to practice its profession.
14. Consultant's Insurance.
Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special
Provisions" attached hereto and made a part hereof.
15. Indemnification.
(a) For Claims (as defined herein) other than those alleged to arise from Consultant's
negligent performance of professional services, City and its respective elected and appointed
boards, officials, officers, agents, employees and volunteers (individually and collectively,
"Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall
indemnify, protect and hold harmless Indemnitees from and against, any and all liabilities, claims,
actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and
expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which
Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or
arising out of any injury to or death of any person(s), damage to property, loss of use of property,
economic loss or otherwise occurring as a result of Consultant's negligent performance under this
Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers,
directors, sub-consultants or employees.
(b) For Claims alleged to arise from Consultant's negligent performance of
professional services, Indemnitees shall have no liability to Consultant or any other person for,
and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all
Claims that lndemnitees may suffer or incur or to which Indemnitees may become subject by
reason of or arising out of any injury to or death of any person(s), damage to property, loss of use
of property, economic loss or otherwise to the extent occurring as a result of Consultant's
negligent performance of any professional services under this Agreement, or by the negligent or
willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or
employees, committed in performing any of professional services under this Agreement. For
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Claims alleged to arise from Consultant's professional services, Consultant's defense obligation
to Indemnitees shall include only the reimbursement of reasonable defense costs and attorneys'
fees to the extent caused by Consultant's negligence.
(c) The foregoing obligations of Consultant shall not apply to the extent that the Claims
arise from the sole negligence or willful misconduct of City or its elected and appointed boards,
officials, officers, agents, employees and volunteers.
(d) In any and all Claims against City by any employees of the Consultant, anyone
directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification
obligation under this Section 15 shall not be limited in any way by any limitation on the amount or
type of damages, compensation or benefits payable by or for the Consultant under worker's
compensation acts, disability benefit acts or other employee benefit acts.
(e) Consultant shall, upon receipt of written notice of any Claim, promptly take all
action necessary to make a claim under any applicable insurance policy or policies Consultant is
carrying and maintaining; however, if Consultant fails to take such action as is necessary to make
a claim under any such insurance policy, Consultant shall reimburse City for any and all costs,
charges, expenses, damages and liabilities incurred by City in making any claim on behalf of
Consultant under any insurance policy or policies required pursuant to this Agreement.
(f) The obligations described in Section 15(a) through (e) above shall not be
construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which
would otherwise exist as to any party or person indemnified pursuant to this Section 15.
(g) The rights and obligations of the parties described in this Section 15 shall survive
the termination of this Agreement.
16. Assumption of Risk.
Except for injuries to persons caused by the willful misconduct of any Indemnitee and not
covered by insurance maintained, or required by this Agreement to be maintained, by Consultant:
(a) Consultant hereby assumes the risk of any and all injury and damage to the personnel
(including death) and property of Consultant that occurs in the course of, or in connection with,
the performance of Consultant's obligations under this Agreement, including but not limited to
Consultant's Scope of Services; and (b) it is hereby agreed that the Indemnitees are not to be
liable for injury or damage which may be sustained by the person, goods or property of Consultant
or its employees in connection with Consultant's performance its obligations under this
Agreement, including but not limited to Consultant's Scope of Services.
17. Consultant Not an Agent.
Except as City may specify in writing, Consultant shall have no authority,
expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant
shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any
obligation whatsoever.
18. Personnel.
Consultant shall assign qualified and certified personnel to perform requested
services. The City shall have the right to review and disapprove personnel for assignment to
Poway projects.
9 of 55 5 March 19, 2019, Item #4.3
City shall have the unrestricted right to order the removal of any person(s)
assigned by Consultant by giving oral or written notice to Consultant to such effect.
Consultant's personnel shall at all times comply with City's drug and alcohol
policies then in effect.
19. Notices.
Notices shall be given as described on Exhibit "A" entitled "Special Provisions"
attached hereto and made a part hereof.
20. Governing Law, Forum Selection and Attorneys' Fees.
This Agreement shall be governed by, and construed in accordance with, the laws
of the State of California. Each party to this Agreement consents to personal jurisdiction in San
Diego County, California, and hereby authorizes and accepts service of process sufficient for
personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for
giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or
conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central
Division, unless the parties mutually agree to submit their dispute to arbitration. Consultant
hereby waives any right to remove any such action from San Diego County as is otherwise
permitted by California Code of Civil Procedure section 394, The prevailing party in any such
action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including
its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees.
Notwithstanding the foregoing, in the event that the subject of such an action is compensation
claimed by Consultant in the event of termination, Consultant's damages shall be limited to
compensation for the 60-day period for which Consultant would have been entitled to receive
compensation if terminated without cause, and neither party shall be entitled to recover their
litigation expenses.
21. Gender. -_
Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean
the individual or corporate consultant and any and all employees of consultant providing services
hereunder.
22. Counterparts.
This Agreement(and any amendments) may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute one and the
same instrument. Documents delivered by telephonic facsimile transmission shall be valid and
binding.
23. Entire Agreement.
This Agreement shall constitute the entire understanding between Consultant and
City relating to the terms and conditions of the services to be performed by Consultant. No
agreements, representations or promises made by either party, whether oral or in writing, shall
be of any force or effect unless it is in writing and executed by the party to be bound thereby.
10 of 55 6 March 19, 2019, Item #4.3
24. Certification and Indemnification Regarding Public Employees'
Retirement Law/Pension Reform Act of 2013.
Contractor hereby certifies that all persons providing services to City by Contractor
are not current members of the California Public Employees' Retirement System(CaIPERS) and
shall not become members of CaIPERS while providing services to City.
Contractor further provides that in the event Contractor assigns a retired annuitant
receiving a pension benefit from CaIPERS to perform services for City, the retired annuitant is in
full compliance with Government Code section 7522.56. A copy of Government Code section
7522.56 is attached hereto as Exhibit "B."
Further, Contractor hereby fully and unconditionally indemnifies City from all
penalties, fees, employer and employee contributions, or any other assessments imposed by
CaIPERS in the event CaIPERS determines the person assigned by Contractor to provide
services to City has been misclassified.
25. Severability.
If any provision of this Agreement is determined by any court of competent jurisdiction or
arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be
construed as though more narrowly drawn, if a narrower construction would avoid such invalidity,
illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such
invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this
Agreement shall remain in effect.
(Remainder of page intentionally left blank)
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11 of 55 March 19, 2019, Item #4.3
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the
date first above written.
CITY OF POWAY CONSULTANT
By: By:
Tina White, City Manager Sudhir Pardiwala, Executive Vice President
Date: Date:
ATTEST:
Faviola Medina, City Clerk
APPROVED AS TO FORM:
By:
Alan Fenstermacher, City Attorney
12 of 55 8 March 19, 2019, Item #4.3
"SPECIAL PROVISIONS"
EXHIBIT "A"
A. Scope of Services.
Consultant agrees to perform consulting services as required by City, which shall
consist of a Comprehensive Cost of Service and Rate Study of the Water Enterprise Fund and
the Sewer Enterprise Fund and provide ongoing annual support further described in the Scope of
Services (Tasks 1-10) submitted with the proposal dated March 4, 2019, which is included in this
document as Attachment 1, and incorporated by reference, as if its contents were fully set forth
herein. At this time, Optional Services (Tasks 11 & 12) are not required. Consultant shall provide
the necessary qualified personnel to perform the services.
B. Compensation and Reimbursement.
City shall pay Consultant a fee in accordance with the Cost Proposal submitted
with the proposal dated March 4, 2019, which are included in this document as Attachment 2.
Total fee is not to exceed $191,610, which is inclusive of expenses and includes the two optional
one year extensions provided for in Section C. of this exhibit. The breakdown of costs per year
is as follows:
Initial Term
Year 1: $112,490 (Cost of Service and Rate Study)
Year 2: $19,780 (Annual Update)
Year 3: $19,780 (Annual Update)
Total $152,050
Optional Extensions
Year 4: $19,780 (Annual Update)
Year 5: $19,780 (Annual Update)
Total $39,560
Total Cost of Services for the Initial Term and Optional Extensions: $191,610
As noted in the attached Cost Proposal, the cost of annual updates included in the not-to-exceed
amount will be adjusted for the "hourly rate" at the time of each update. Consultant's fee shall
include, and Consultant shall be responsible for the payment of all federal, state, and local taxes
of any kind which are attributable to the compensation received.
C. Term of Agreement.
This Agreement shall be effective from the period commencing March 20, 2019,
and ending June 30, 2022, unless sooner terminated by City as provided in the section of this
Agreement entitled 'Termination." This Agreement may be extended for up to two additional one-
year periods upon approval in writing of the City Manager and Consultant. Upon expiration or
termination of this Agreement, Consultant shall return to City any and all equipment, documents
or materials and all copies made thereof which Consultant received from City or produced for City
for the purposes of this Agreement.
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D. Consultants Insurance.
1. Coverages:
Consultant shall obtain and maintain during the life of this Agreement all of
the following insurance coverages:
(a) Comprehensive General Liability, including premises-operations,
products/completed, broad form property damage, and blanket contractual liability with the
following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined
each occurrence and $2,000,000 aggregate.
(b) Automobile Liability, including owned, hired, and non-owned
vehicles: $1,000,000 combined single limit.
(c) Consultant shall obtain and maintain, during the life of the
Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of
not less than $1,000,000 combined single limits, per claim and annual aggregate.
(d) Workers' Compensation insurance in statutory amount. All of the
endorsements which are required above shall be obtained for the policy of Workers'
Compensation insurance.
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following
three provisions:
(a) Additional Insured. (Not required for Professional Errors and
Omissions Liability Insurance or Workers' Compensation.)
"City of Poway and its elected and appointed boards, officers, agents, and
employees are additional insureds with respect to this subject project and contract with City."
(b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30)
days after written notice is given to City."
(c) Primary Coverage.
'The policy provides primary coverage to City and its elected and appointed
boards, officers, agents, and employees. It is not secondary or in any way subordinate to any
other insurance or coverage maintained by City."
3. Insurance Certificates:
Consultant shall provide City certificates of insurance showing the insurance
coverages described in the paragraphs above, in a form and content approved by City, prior to
beginning work under this Agreement.
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E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the
following addresses:
To City: City of Poway
P.O. Box 789
Poway, CA 92074
To Consultant: Sudhir Pardiwala, PE
Executive Vice President
Raftelis Financial Consultants, Inc.
24640 Jefferson Avenue, Suite 207
Murrieta, CA 92562
15 of 55 3 March 19, 2019, Item #4.3
EXHIBIT "B"
Cal Gov Code .5 7522.56
Deering's California Codes are current through all 1016 chapters of the 2018 Regular
Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE> Tide I General>Division 7
Miscellaneous> Chapter 2! Public Pension and Retirement Plans>Article 4 California Public
Employees'Pension Reform Act of 2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public
retirement system; Section supersedes conflicting provisions
(a)This section shall apply to any person who is receiving a pension benefit from a public
retirement system and shall supersede any other provision in conflict with this section.
(b) A retired person shall not serve, be employed by, or be employed through a contract
directly by, a public employer in the same public retirement system from which the retiree
receives the benefit without reinstatement from retirement, except as permitted by this
section.
(c) A person who retires from a public employer may serve without reinstatement from
retirement or loss or interruption of benefits provided by the retirement system upon
appointment by the appointing power of a public employer either during an emergency to
prevent stoppage of public business or because the retired person has skills needed to
perform work of limited duration.
(d)Appointments of the person authorized under this section shall not exceed a total for all
employers in that public retirement system of 960 hours or other equivalent limit, in a
calendar or fiscal year, depending on the administrator of the system. The rate of pay for the
employment shall not be less than the minimum, nor exceed the maximum, paid by the
employer to other employees performing comparable duties, divided by 173.333 to equal an
hourly rate. A retired person whose employment without reinstatement is authorized by this
section shall acquire no service credit or retirement rights under this section with respect to
the employment unless he or she reinstates from retirement.
(e)
(1)Notwithstanding subdivision (c). any retired person shall not be eligible to serve
or be employed by a public employer if, during the I2-month period prior to an
appointment described in this section. the retired person received any unemployment
insurance compensation arising out of prior employment subject to this section with
16 of 55 March 19, 2019, Item #4.3
1
Cal Gov Code§ 7522.56
a public employer. A retiree shall certify in writing to the employer upon accepting
an offer of employment that he or she is in compliance with this requirement.
(2)A retired person who accepts an appointment after receiving unemployment
insurance compensation as described in this subdivision shall terminate that
employment on the last day of the current pay period and shall not be eligible for
reappointment subject to this section for a period of 12 months following the last day
of employment.
(1)A retired person shall not be eligible to be employed pursuant to this section for a period
of 180 days following the date of retirement unless he or she meets one of the following
conditions:
(I)The employer certifies the nature of the employment and that the appointment is
necessary to fill a critically needed position before 180 days have passed and the
appointment has been approved by the governing body of the employer in a public
meeting. The appointment may not be placed on a consent calendar.
(2)
(A)Except as otherwise provided in this paragraph, for state employees.. the state
employer certifies the nature of the employment and that the appointment is
necessary to fill a critically needed state employment position before 180 days
have passed and the appointment has been approved by the Department of
Human Resources. The department may establish a process to delegate
appointing authority to individual state agencies, but shall audit the process to
determine if abuses of the system occur. If necessary. the department may assume
an agency's appointing authority for retired workers and may charge the
department an appropriate amount for administering that authority.
(B)For legislative employees, the Senate Committee on Rules or the Assembly
Rules Committee certifies the nature of the employment and that the
appointment is necessary to fill a critically needed position before 180 days have
passed and approves the appointment in a public meeting.The appointment may
not be placed on a consent calendar.
(C)For employees of the California State University. the Trustees of the California
State University certifies the nature of the employment and that the appointment is
necessary to fill a critically needed position before 180 days have passed and
approves the appointment in a public meeting. The appointment may not be placed
on a consent calendar.
(3)The retiree is eligible to participate in the Faculty Early Retirement Program
pursuant to a collective bargaining agreement with the California State University
that existed prior to January 1, 2013. or has been included in subsequent agreements.
(4)The retiree is a public safety officer or firefighter hired to perform a function or
functions regularly performed by a public safety officer or firefighter.
17 of 55 2 March 19, 2019, Item #4.3
Cal Gov Code § 7522.56
(g)A retired person who accepted a retirement incentive upon retirement shall not be eligible
to be employed pursuant to this section for a period of 180 days following the date of
retirement and subdivision (I)shall not apply.
(h)This section shall not apply to a person who is retired from the State Teachers'
Retirement System, and who is subject to Section 24214 24214.5 or 26812 of the
Education Code.
(i)This section shall not apply to (1) a subordinate judicial officer whose position, upon
retirement, is converted to ajudgeship pursuant to Section 69615, and he or she returns to
work in the converted position, and the employer is a trial court, or(2) a retiree of the
Judges' Retirement System or the Judges' Retirement System II who is assigned to serve in a
court pursuant to Section 68543.5.
History
Added Stals 2012 ch 296 S 15 (AB 340) effective January 1. 2013. Amended Stats 2013 ch 528
$11 (SB 13),effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383),effective January
I, 2013; Stats 2014 ch 238§ 1 (AB 2476), effective January 1, 2015.
Annotations
Notes
Amendments:
Note—
Amendments:
2013 Amendment:
Substituted (I) "have passed" for "has passed" in the first sentence of subds (f)(I) and 0)(2); (2)
"or firefighter hired to perform a function or functions regularly performed by a public safety
officer or firefighter" for "of firefighter" in subd (f)(4); and (3) "Judges' Retirement System" for
"Judges' Retirement System I" in subd (i).
18 of 55 3
March 19, 2019, Item #4.3
R RAFTELIS
Comprehensive Cost of Service and Rate Study of the
_ _ Water Enterprise Fund and the Sewer Enterprise Fund
and Ongoing Consultant Support for Annual Water and
Sewer Calculations
__ PROPOSAL MARCH 4,2019
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19 of 55 March 19, 2019, Item #4.3
PROJECT UNDERSTANDING 8 WORK PLAN
Project Understanding
and Work Plan
The City of Poway provides form bimonthly fixed service TASK An important part of the
potable water, recycled charge and a volumetric kick-off meeting will be a
water and sewer services to charge, separated into seven Project Initiation, discussion of pricing objec-
a population of 50.253 The tiers, based on the custom- Project tives. Based on the pricing
majority of water customers er's winter water usage. All Management, and objectives identified, Raft-
receive sewer service and other customers also pay Data Collection elis will make suggestions
recycled water is provided a fixed bimonthly service as to the most appropriate
to 214 customers primarily charge but based on meter rate structures to meet the
located in the South Poway size. There is also a uniform Kick-off Meeting and City's objectives. During
Business Park. The City cur- flow charge. The City would Data Collection the workshop, Raftelis will
rently imports all its potable like to evaluate the current At the beginning of the present an overview of
water as raw water from the rate structures and consider study, Raftelis will prepare a pricing objectives and seek
San Diego County Water potential alternatives should detailed data request list that input on the most important
Authority (SDCWA) and they better meet the utilities' will identify the information pricing objectives. The City
treats it in its own treatment needs, such as revenue sta- needed to complete the van- has identified financial suf-
plant. The City also pro- bility and sustainability. ous analyses for all the tasks ficiency and stability during
vides wastewater collection of the study. This includes decreased demand and
service. and transports the The City's objectives for the historical and current rev- rates that can be imple-
wastewater to the San Diego study include enues, usage, expenses, mented in the City's billing
Metropolitan Wastewater • Develop a financial plan reserve policies, billing and system under Northstar Util-
System (METRO) for treat- for each enterprise fund collection procedures, cus- ities Solutions as important
ment and disposal. Recycled that meets the utilities' tomer account information, objectives. The City has
water is purchased from the revenue requirements, capital improvement plans, also indicated it would like
City of San Diego. Based on including maintenance estimated growth in the City, to develop sewer charges
the 2015 Urban Water Man- and operations (M&O) and any projected changes that could be easily added
agement Plan and supported and the capital improve- in demand either through to the property tax roll We
by the recent update to the ment plan (CIP), while growth or through reduced can discuss these and other
recycled water purchase adequately funding water demands. Prior to the potential objectives such as
agreement with the City of reserves in accordance kick-off meeting, Raftelis will promotion of efficient water
San Diego, the City intends with industry best prac- perform a preliminary review use, affordability for essen-
to expand the recycled water tices and meeting debt of the initial data, including tial use, minimization of
system. coverage requirements the City's utility master plans customer impacts. simplicity
• Conduct Cost of Service and the Urban Water Man- and customer understand-
The City currently charges analyses for the water agement Plan. ing, amongst others
potable water customers and sewer services
a fixed bimonthly meter that ensures the nexus We believe a productive Project Management
charge and a volumetric rate between the cost to kick-off meeting is the most Our management approach
based on customer class. serve customers and effective way to begin a study stresses transparency,
Single-Family Residential the responsibility of each of this nature. It provides a communication. teamwork,
customers pay based on class, per Proposition forum to discuss goals and objectivity, and account-
a two-block rate structure 218 requirements objectives, policies. and ability to meeting project
based on units of consump- • Implement five-year methodologies, as well as objectives. Management
tion All other customers pay rate schedules that are finalize the work schedule responsibilities extend
a uniform volumetric rate compliant with Propose- to ensure that the project to general administrative
Recycled water customers tion 218. all other legal progresses as smoothly as duties such as client corre-
pay based on the same requirements, and the possible. Raftelis will pre- spondence, billing, project
rate structure, with the rates City's policies while also pare a meeting agenda and documentation,and adminis-
themselves at 90 percent ensuring financial suffi- send it to the City prior to tration of the study schedule.
of the potable water rates. ciency to fund operating the meeting. Following the Throughout the study, the
Single family residential and capital costs during meeting, Raftelis will prepare Raftelis Team will schedule
sewer customers pay a uni- the Study period. detailed meeting minutes interim status webinars to
20 of 55 March 19. 2019, Item #4.3
02
CITY OF POWAY
discuss project progress, the period for each enterprise. the water, recycled water(as rate structure scenarios to
project schedule and present We will project future yearly part of the Water Enterprise enhance revenue stability
preliminary results The Pro- O&M expenses. such as Fund), and sewer services in light of competing objec-
ject Team will also conduct annual water purchase to determine the revenue lives. such as affordability
face-to-face meetings as costs. salaries and benefits, adjustments needed for for essential needs, revenue
outlined in the scope power, and materials using each while minimizing and rate stability, and con-
City-approved inflationary sharp rate fluctuations. The servation. For the water
Quality Assurance/ assumptions. Existing rate dashboard will allow users utility, Raftelis will include an
Quality Control revenues for water utilities to vary assumptions, so the examination of tiered water
Process are based on anticipated user can display the effects rates. uniform rates. and the
In every project, we imple- water sales which have of revenue adjustments, balance of fixed and volu-
ment a systematic program of fluctuated due to the most capital financing through metric charges based on
quality assurance to ensure recent drought and recovery. rates or debt, and reserve fixed and volumetric costs.
consistency, accuracy, and In addition, the City will need balances. A snapshot of a Since the City has multiple
validity Our proposed Tech- to prepare for mandated sample dashboard is shown pumping zones, we will dis-
nical Reviewer, Hannah consumption reductions on the following page Sev- cuss the appropriateness
Phan, will ensure that the over the next ten years due eral features of the model's of separate zone rates. The
cost of service and rate to the passage of SB 606 dashboard include the ability City may also want to con-
model developed is function- and AB 1668 in March 2018. to show or indicate: sider water budget rates,
ing properly and is based on Raftelis' models include a • Revenue adjustments which we have included as
sound rate-making princi- dashboard that allows for needed for the next a separate, optional task
pies and standard industry easy manipulation of water five years to meet debt (Optional Task 11). A water
practice. Additionally, she consumption assumptions coverage, fund capital budget rate structure aims
will ensure the report is pre- for comparison of revenues projects. and reserves to maximize efficiency (vs.
pared to address the nexus under different usage sce- • Reserve balances and conservation) customized
between costs and rates that narios We can work with reserve targets as well to each individual customer.
meet the requirements of the City staff to examine different as debt service coverage We can provide an overview
San Juan Capistrano deci- demand scenarios under this ratios(days cash on hand, of this rate structure during
sion. This will ensure that legislation or any other sce- reserve funding levels) the kick-off meeting so the
all of our work products will narios that affect demand • Projected operating costs City can evaluate if this may
be of the highest quality and and revenue streams be an appropriate structure _
meet or exceed the stand- Raftelis will also review - Operating cost break for the potable water util-
ards that our clients have reserve policies to recom- down (O&M, water pur- ity We have also included _
come to expect from Raftelis. mend appropriate reserve chases, debt payments) the calculation of drought
balances (operating, capital, • Different capital funding rates as Optional Task 12. _
Meeting: One in-person rate stabilization, etc.) that sources such as PAYGO Drought rates allow water
Kick-off meeting are consistent with industry (rate funding), debt utilities to maintain revenue _
Deliverables: Data request: standards for prudent fiscal financing stability during mandated
kick-off meeting agenda. management as well as the consumption restrictions. _
presentation materials, and City's risk tolerance. The ten- City staff can review and For the sewer rates, we
minutes year financial plan for each determine the most appro- will discuss the option of _
utility will also model the priate financial plan and rate including the charges on
TASK 2 sources and uses of funds for design From a client's per the property tax roll and how _
each reserve. For a typical that may affect design
Financial Plan capital reserve. the sources TASK c; —
Development of funds include cash Tiered Rates
reserves, debt proceeds, Rate Design In today's rate-setting envi-
and grant funding. Modelling — ronment. it is imperative to
This important task will the yearly ending balance in show the nexus between the _
ascertain the additional the capital reserves allows Rate Development cost to serve water in each
revenue needed to ensure staff to determine the rate Raftelis will develop potable tier and the rate in each tier. _
the financial integrity of the impacts of various capital water, recycled water, and For the tiered structure. Raft-
utilities. It will do so by pro- improvement plan scenarios wastewater rate models with ells will calculate and show
jecting the City's existing and assess the proper use the flexibility to compare the nexus between costs and
rate revenue, other operating of debt and reserves to fund the current rate structures tiers by tabulating the tiered
and non-operating revenues, capital projects. with up to five alternative rates to show each unit cost
debt service payments, rate structures The models component - which includes
and operating and capital Raftelis will develop a ten- will have the capability water supply costs. system
expenses over a ten-year year cash flow analysis for to examine the diffecent s (deIivErvc say peak-
21 of 55 arch •9, , -
RAFTELIS
Raftelis will develop a customized financial model for the City that incorporates a dashboard to allow
you to easily run scenarios and see the impacts in real time.
Shown below is a sample dashboard that we developed for another project.
Zero Selected V,nabte- S.MstClOSeermalo S-ds.t Ct (ap, Select Fund to D,aplry on Chert•,.nc:'::6':t
(EY VARWIES f`/2014 FY IOUs fY;C36 fY 2011 FY 203A GY 2019 FY gage FY 70ry FY 202.2 FY 2016 tY 7C24
• 0. adlts .._. :C.'•1 :0 C% .C C. C S'. .. I S\ 6.51 63'.
OteeV0 Cwt RecOe.r Fen IIn«net C`n 13.CCC.CC0 SIDI:C.0:C
Oroolftt Cott Recovery Fee.lenem.e M 37-250.000 SUM= SO SC SC SC SO SO SO SO
al •1 New Feed iv Deet S:7,sOC.000 S9.3CC.000 S2t,4CC.000 S5.00C.000
adho<OW[hw'[n-711 5C >C 5= SO
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er.r. fir.•
Protected Water Stet 2.947 MG 2.304 MG 2906 MG 3.0/7 MG 1.071 MG 3Aa7 MG 3.097 MG 3.112 MG 1.123 MG 1.136 MG 3.149 MG
R..A4..% Revenue Adjustments and Debt Coverage a.erag. CIP and Funding Sources for Water Funds
12.0'16 i — -.----VIM =ft IOC% 127-22 400% Wdeet C7Pi.lartn
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Lon i -30031 =520 sla.a
0.076 € 200% 3 533
EL
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311) :7
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FY 2014 FY 2015 FY 2016 FY 2017 Fr 201E FY 2019 FY 2014 FY 2015 FY 2016 FY 2017 FY 201E FY2029.
MEI Ree/An ra Drought Ger —pelt Coverage —Tort IltEt Coverage f av Other Agencies :.By PayGo ■By New Debt .Total Ct
Water Operating Financial Plan Projected Ending Fund Balances
SFO C Seo
Sao --� o S1S i 5:21 •
le fli
S20 — �__ ■ SIO
SO r -, SS
-Sa0r So '
FY 2014 FY 2015 FY 2016 FY 2017 FY 201E FY 2019 FY 2014 FY 2015 FY 2016 FY 2017 FY 201E FY 2019
O&M Clryan3tt t�Dalt SeMG. C'gt41/RtloY.Funding o Ending Salome/ —Tort adatt.s • men linos
—Ctrnmt Rev -_-keposed Ree
ing costs, and conservation Customer Impacts for generating customer since many factors, such
costs, to name a few. This and Sensitivity buy-in and successful rate as water sources. age and
rate derivation will commu- Analysis implementation. replacement of infrastruc-
nicate to customers the cost Rate adjustments stem ture, service area, and other
drivers behind the rate for from a change in the reve- Meetings: One in-person local conditions affect the
each tier. During our anal- nue requirement, and/or a meeting and up to two webi- total cost of providing water
ysis, we will examine how change in the rate structure. nars with City staff and wastewater services.
the current tier breaks for The total rate adjustment Deliverables: Rate models Raftelis regularly conducts
single-family customer class can sometimes cause "rate and customer bill impacts for such surveys for our clients.
serve the utility's needs and shock" to customers In our all three services in Micro- We also publish the nation-
whether the rate structure impact analysis graphics,we soft Excel ally recognized biennial
is defensible. Raftelis may calculate bills at each level Water and Wastewater Rate
recommend adjustments to of usage assuming the new Survey, which is co-pub-
the tier structures in order proposed rate structure was TASK E lished with AWWA, and the
to ensure defensibility. We already in place to determine Rate Survey California-Nevada Water and
design our rate models to the "true" impact of the new — Wastewater Rate Survey,
allow for multiple rate sce- rate structure. The customer which is co-published with
nario analyses to show: impact analysis will include Raftelis will compare the the CA-NV AWWA.
• Different rate structures a series of tables and fig- City's current and proposed
with varying levels of fixed ures that show projected rates with five local water Using the rate survey data,
and variable revenues rate impacts by customer and wastewater agencies. Raftelis will develop an Excel
• Different levels of water class at various levels of We will include recycled model to compare the total
use - based on potential usage. Understanding cus- water rates where recycled bimonthly water and waste-
water supply conditions tomer impacts and taking water is available. While a water bill amount of a typical
corrective action, if neces- useful benchmark, it is worth residential customer within
sary, allows us to design noting that such comparisons each agency. The adjustable
public outreach strategies only paint a partial picture inputs of the model are water
22 of 55 March 19, 2019. Item #4.3
04 CITY OF POWAY
usage and meter size. The Council and the City Council, Raftelis 218 public hearing notice for
model will include the appro- Deliverables: Presentation will provide the final report. mailing within the required
priate graphs and figures that materials We will also provide a sum- 45-day noticing period prior
display the total bill of a typi- mary for public consumption. to holding the public hear-
cal customer in each agency ing. The notice will outline
as illustrated above TASK 7 Meetings: Two webinars with reason for the proposed
Rate Study Report staff to discuss comments rates. explain the right to
Meetings: None _ Deliverables: One elec- challenge the rates, and
Deliverables: Rate survey tronic version and five will meet and comply with
model in Microsoft Excel In order to comply with Prop- hardcopies of the prelim- all noticing requirements of
osition 218 requirements, inary study report. one Proposition 218. Raftelis will
Raftelis will prepare a rate electronic version of the then present the study results
T n c r
study report documenting revised draft study report. at a Proposition 218 hearing
City Council Rate the rate study for all three one electronic copy of the as an option. We will address
Workshops services. A preliminary study draft final report; one elec- the City Council and public
report will include an execu- tronic copy of the final study questions and comments_
tive summary highlighting the report oone electronic copy Presentation matenals will be
Raftelis will present the draft major issues and decisions of the summary sheet provided to City staff before-
results of the study during a reached during development hand for review prior to the
workshop with City Council. of rates. The main body public hearing
The presentation will begin of the report will include a TASK 8
with a recap of the conclu- brief physical description Model Training Meetings: One optional
sions drawn at the kick-off of each utility system, ser- — Proposition 218 Public
meeting. We will discuss vice area description, an Hearing
the recommended reserve overview of operation and Raftelis will conduct a training Deliverables: Proposition
and fund levels, proposed maintenance expenses, the session with City staff on how 218 public hearing notice;
financial plan, and the pro- capital improvement plan, to use the rate models and public hearing presentation
posed rate structure and the financial plan, and the adjust inputs to run various materials
rates along with the resulting proposed rates The report scenarios. The models will
customer impact analysis. will also contain a discussion be developed using Microsoft
If necessary, Raftelis will on rate structure selection, Excel 2016. Using a familiar TASK 10
use the financial plan and rate design assumptions, program like Excel instead Annual Updates
rate models to address any and methodologies used of proprietary software pro-
questions raised regarding to develop the rates. The motes comprehension of
the results. Any changes, methodology describing the the model by City staff and Best practices under indus-
comments. and feedback will cost of service and rate cal- those who may need to use try standards recommend
then be incorporated into the culations will be described or update the model in the conducting a cost of service
final models. in detail so that the nexus future. Raftelis models have analysis every five years
between costs and rates is numerous features that make The City has requested
After the first rate workshop, clearly defined and under- them easy to use annual support for rate
Raftelis will present the final standable. The report will calculations. Our cost and
results to City Council. The also incorporate the results Meetings: One in-person time estimates for this sup-
presentation will discuss of the rate survey. This first model training session with ports based on an update
any changes that resulted version will be submitted to staff to the financial plan, which
from the previous meeting staff for review and comment. Deliverables: Presentation will allow us to provide the
with Council including a dis- materials City rate adjustment recom-
cussion of how the results The resulting revised draft mendations. Should the City
meet the City's objectives. study report will be submitted require additional services.
Prior to the City Council for City and the City Attorney TASK 9 we can discuss such tasks
presentation, Raftelis will comments and edits. We will Proposition 218 during a brief kick-off meet-
conduct a conference call then incorporate these revi- Notice and Public ing to initiate annual update.
with City staff to review the sions into a draft final report Hearing Please note that the fee
presentation materials that will be presented during —_ schedule includes the total
the City Council rate work- cost of one update based on
Meetings: Two in-person shops. After incorporating Raftelis will assist City staff present costs. We respect-
Rate Workshops with City any final edits from City staff to develop a Proposition fully ask that these costs be
23 of 55 March 19. 2019. Item #4.3
05 RAFTELIS
reviewed annually for any recovered in each tier Drought-related costs can
changes in hourly rates. and the associated price be recovered through fixed
for each tier. In addition, charges, volumetric rates.
Meetings: Four annual kick- the model will be able or a combination of the two
off meetings. four annual to easily update tiered Based on the demand reduc-
draft financial plan webinars: rates, based on the future tion scenarios and selected
four annual financial plan revenue requirements drought rate structure. the
update in person meetings: drought rate model will cal-
four annual report review Meetings: One webinar to culate the rates for each
webinars; discuss the water budget demand reduction scenario
Deliverables: Four annual framework: one webinar to and present the resulting
kick-off meeting agendas discuss results customers' impacts in both
presentation materials, and Deliverables: Water budget numerical and graphical
meeting minutes; four annual rate model format using the dashboard
financial plan updates, four platform.
annual financial plan update
reports, four updates to the TASK 12 Meetings: One webinar with
Proposition 218 notices (Optional): staff
Drought Rates Deliverables: Drought rate
model
TASK 11
(Optional): Water Drought rates are a tool
Budget Rates that allow the City to reliably
recover the necessary reve-
nue to fully fund the system
If the City determines it would in such times. Raftelis has
like to adopt water budget assisted many agencies in
rates, then Raftelis will California in developing and
develop a Water Budget Rate adopting drought rates (also
Model that will calculate rev- sometimes referred to as
enue and customer impacts drought surcharges, water
in addition to provide sensi- shortage surcharges. or sim-
tivity analyses. This model filar) as a proactive means
will be developed based on of weathering drought, both
a water budget framework financially and from a water
developed with City staff management standpoint
This task also includes the
integration of parcel data As part of this task, Raftelis
from GIS (if available) and will develop with City staff
consumption data from bill- demand reduction scenarios
ing system for all applicable (or drought stages) repre-
customer classes. The Water senting varying levels of
Budget Rate Model will have reduced demands(e g. over-
the following features. all percent reduction in total
• Allocation for Water demand, and categories of
Budget. The ability to demand (i.e. irrigation, resi-
evaluate different policy dential, or commercial) that
options associated with are reduced), and associ-
defining indoor and out- ated water supply reduction.
door use efficiency such Using the demand reduction
as landscape area and scenarios developed, Raftelis
weather will update the water financial
• Rate Calculations plan model to include the
and Customer Impact ability to assess the financial
Analyses The model consequences of drought or
determines the revenues conservation for each stage.
24 of 55 March 19. 2019. Item #4.3
06
Time c e u e
Financial
Responsibility
Based on the extensive experience of our firm and our Project Team mem-
bers successfully providing the requested services for numerous utilities
across North America, we are extremely confident in our ability to provide
the City with the requested services in a timely and efficient manner. Rafte-
lis places a high priority on being responsive to our clients. Therefore, each
of our project schedules is individually formulated to manage and identify
the work effort associated with the scope of services, and we actively
manage each consultant's project schedule to ensure appropriate availabil-
ity for addressing client needs. In addition to our Project Team. the City will
have the support of Raftelis' full staff of 80 consultants who specialize in
financial, rate, and management consulting services for water and wastewa-
ter utilities to provide services for this project if necessary.
As evidenced by Raftelis' 25 years of experience successfully providing
consulting services to hundreds of utilities across the country, Raftelis has
the financial capability to provide the requested services on a cost reim-
bursable basis.
25 of 55 March 19, 2019, Item #4.3
RELEVANT WORK EXPERIENCE
Experience
RAFTELIS HAS THE MOST EXPERIENCED { •
UTILITY FINANCIAL AND MANAGEMENT , , • • ` . 1,
CONSULTING PRACTICE IN THE NATION. • ' +:: •-r
n a r "
Our staff have assisted more than 1,000 utilities across the U.S., .. . • • . •;•
including some of the largest and most complex agencies in " yM •
• • ..
•
the nation. In the past year alone, Raftelis worked on more than •• • . • • .s
600 financial/organizational/technology consulting projects for , ; • • ' •;,•
over 400 water, wastewater, recycled water. and/or stormwater ••,
utilities in 40 states, the District of Columbia, and Canada. • ••
Raftelis has provided financial/
On the following pages, we have provided detailed descriptions organizational/technology assistance
of five projects that the assigned staff have worked on which are to utilities serving more than 25% of
similar in scope to the City's project along with references. the U.S. population.
Rainbow Municipal Water District estimating year-end expenses, and identifying and implement-
CALIFORNIA
mplement-
CALIFORNIA ing efficiencies in regard to the District's complicated internal
financial spreadsheets
Reference: Tom Kennedy, General Manager
3707 Old Highway 395, Fallbrook, CA 92028 Following the budgetary support. Raftelis performed a com-
e: 760.728.1178/ Email: tkennedy@rainbowmwd com prehensive water rate and financial plan update. The Study
Date: 2018 (working on an on-going basis) involved developing a long-term financial plan, consumption
analysis, cost of service analysis, and rate structure develop-
ment. The rate structure included a fixed monthly operations
Rainbow Municipal Water District (District) purchases water and maintenance charge, a fixed pass-through charge to
from the San Diego County Water Authority (SDCWA) and recover the costs imposed by the SDCWA, commodity rates
provides service to agricultural and municipal users. The (including special agriculture rates, tiered residential rates,
District provides the majority of its water to agricultural users. and uniform non-residential rates). and pumping charges
SDCWA provides water to the majority of the agricultural to account for the significant costs to pump water to higher
users at a reduced special agricultural rate. In 2014, the Dis- elevations. In addition, Raftelis worked with the District to
trict engaged Raftelis to review and evaluate the District's develop drought rates for various stages of drought The
existing water rate structure. The Study included determining rates would go into effect only during Board-Declared water
the relationship between the fixed and variable components of shortages Raftelis presented the results of the Study to the
the revenues and expenses,examining the justification for the Finance Committee and to the Board of Directors and the
existing fixed and variable rates for the different user classes, rates were adopted.
reviewing the risk to the District from reduced water sales. and
evaluating the financial position of the District. In 2016, Raftelis was engaged by the District to perform a
financial plan update Raftelis updated the financial plan to
In early 2015, Raftelis assisted the District with updating the account for changes in the rate structure and new financial
revenue requirements based on the most recent financial information. Raftelis worked closely with District staff to
information As part of the Study. Raftelis assisted with pro- determine the new pass-through rates and provided on-site
jecting revenues from rates, determining reserve balances, training. Additionally, in 2016. the District engaged Raftelis to
26 of 55 March 19, 2019. Item #4.3
08 CITY 0=POWAY
develop capacity charges. The District's agricultural custom- adopted Rafters' recommendations of increasing the capacity
ers had widely varying water usage patterns for any given fee from $4.006 per equivalent dwelling unit to 55,089 per
meter size. The challenge was to ensure that new customers equivalent dwelling unit. In addition. Raftelis recommended
paid in proportion to the usage patterns. Raftelis developed the District increase the fees each year to keep pace with
an innovative structure to ensure equitable collection of inflation by applying the Engineering News Record Construc-
capacity fees tion Cost Index.
As a result of the drought. the use in the District dropped
significantly and in 2017, the District again engaged Raftelis Western Municipal Water District
to prepare a new water and wastewater cost of service study. CALIFORNIA
The usage patterns of agricultural users and development of
equitable rates for these users which represent the majority Reference: Kevin C. Mascaro. Controller
of the usage again proved to be challenging. Raftelis worked 14205 Meridian Parkway, Riverside. CA 92518
with District staff to review several different rate alternatives P. 951.789.5060/ E kmascaro@wmwd.com
considering the objectives of the District. Water rate alter- Date: 2018 (working on an on-going basis)
natives included uniform, tiered, consumption-based fixed
rates, and adjustments to the revenue recovery between the —
fixed and variable components. Wastewater rate alternatives
included a residential fixed option, fixed and variable option, Asa member agency of MWD of Southern California, Western
and an equivalent dwelling unit rate Raftelis presented the Municipal Water District (District) provides water and waste-
results of the study to District staff and the Board of Direc- water service to approximately 24,000 retail and 8 wholesale
tors. The final proposed rates were successfully adopted at customers in western Riverside County. Raftelis assisted the
the February 2018 public hearing District in the development and implementation of a new water
budget rate structure
Leucadia Wastewater District First, Raftelis identified and examined three potential water
CALIFORNIA budget rate structures for the Murrieta and Riverside service
areas. To analyze the impacts of these potential rate struc-
Reference: Paul Bushee, General Manager tures. Raftelis developed a Microsoft Excel-based water
1960 La Costa Avenue, Carlsbad, CA 92009 budget rate model. The model allowed the District to change
P. 760 753 0155/ E: pbushee@Iwwd org the key factors for water allocations. provide revenue and
Date: 2018 impact analysis, and generate sample customer monthly
bills under existing and proposed rates. Raftelis conducted
meetings and workshops with District staff and the Board to
analyze various rate structure scenarios to ensure that the
In early 2018, Leucadia Wastewater District(District)engaged new structure would meet the District's objectives. Through
Raftelis to develop a user-friendly financial plan model for the these meetings. a water budget rate structure was selected
wastewater enterprise, review the health of the recycled water to effectively meet the District's needs. and this structure was
enterprise, update wastewater rates. and review and update successfully adopted
the District's capacity fees. The primary objectives were to
ensure the District maintains a strong financial health, incor- Since the adoption of this water budget rate structure, the Dis-
porate the recently completed asset management plan, and trict has increased revenue stability, promoted water efficiency,
update the reserve targets Raftelis worked closely with Dis- and increased customer satisfaction.
trict staff to incorporate appropriate inflationary and growth
projections, costs related to the 17%share of the Encina Water In addition to developing the water budget rate structure, Raft-
Pollution Control Facility, and revenue offsets from Batiquitos, ells also developed a customized, long-term 30-year financial
Encinitas, as well as property taxes. Raftelis hosted several plan model to help the District financially manage all 14 of its
workshops with the District to walk-through the model, evalu- enterprises. This comprehensive yet user-friendly model is
ate and refine the capital improvement plan, and examine the used to facilitate communication between staff and the Dis-
impacts of issuing debt The Board unanimously adopted the trict's Board of Directors about the financial implications of
recommended financial plan. different financial policies and capital improvement projects
The model also assists with coordination and decision making
Raftelis reviewed and updated the District's wastewater between engineering and finance staff as they work to pri-
capacity fees. The recommended capacity fees utilized the oritize capital projects and define a capital financing plan to
buy-in approach as the District's system was built in advance achieve a sustainable and achievable solution
and capable of accommodating build-out demand. The Board
27 of 55 March 19, 2019, Item #4.3
RAFTELIS
Helix Water District rationale was that the first tier would provide for essential
CALIFORNIA indoor use: the second tier encompasses average usage:
and the final two tiers would target the largest users and are
Reference: Lisa Stoia, Director of Admin Services designed to promote conservation. Additionally, Raftelis also
7811 University Ave., La Mesa, CA 91942 recommended that the District separate the then-current corn-
P: 619.667.6205/ E: Iisa.stoia@helixwater.org mercial/irrigation class into two separate classes due to their
Date: Ongoing (annual updates) widely vaned usage patterns since typically, customers who
use water solely for irrigation exhibit much higher peak usage
than a typical commercial customer. Raftelis also updated the
Distnct's water supply shortage rates for various conservation
As part of Raftelis'work with the Helix Water District(the Dis- stages and the proposed rate structure in order to recover the
trict), the District requested a full cost of service rate study as revenue loss due to reduced consumptions at each shortage
well as a comprehensive User Fee Study for administrative level. The District adopted the recommended water rates in
services and miscellaneous fees. The Distnct provides water April 2015 and the water model has been effectively used in
service to approximately 55.000 customer accounts, serving Board meetings and presentations to evaluate the impacts of
a population of approximately 270,000 residents in San Diego various scenarios.
County. Penodically.the District receives requests for specific
services from its customers. ranging from service reconnects, Raftelis also conducted a recycled water financial plan and
backflow inspection, meter installations, turn on /off service, rate study to determine recycled water rates for future years
plan checks, facility rentals, and copies. Raftelis updated the that would sufficiently recover the costs of providing recycled
District's User Fees and developed a fully-burdened hourly water service while maintaining the lowest possible rates. The
rate model that fully captured the cost of direct personnel District's recycled water system is separated into two distinct
providing the service, departmental costs. and overhead service areas: the Northwest Quadrant and the Southeast
charges for support services such as, Finance Services and Quadrant Northwest Quadrant customers get recycled water
IT The model incorporated the functionality to identify which from Vallecitos Water District, and Southeast Quadrant cus-
staff positions are involved with requested service and amount tomers receive recycled water from several sources, including
of time required from each staff member to fulfill the appli- the 4S Recycled Water Treatment Plant. City of San Diego,
cant's request. With this functionality, the District was able to Rancho Santa Fe Community Services District. and a raw
instantaneously determine the appropriate fee to charge for water connection from the San Diego County Water Authority.
full cost recovery. Based on our findings, the District updated The 4S agreement required the District to reimburse 4S Kel-
their fees to generate approximately 10% more revenue in wood for fees and expenses related to the regional recycled
user fee revenue. water system when certain conditions are met. Raftelis ana-
lyzed the impacts of multiple options including reimbursement
and financing of the 4S investments, significant increase in
Olivenhain Municipal Water District recycled water purchase costs from San Diego, economics of
CALIFORNIA serving customers in outside-District areas, and the resultant
customer impacts.
Reference: Rainy Selamat. Finance Manager
1966 Olivenhain Road. Encinitas, CA 92024 Additionally, Raftelis has provided the District with consulting
P: 760.632.4218/ E: rselamat@olivenhain com services related to SDCWA policy and rate issues.
Date: Ongoing
Raftelis is currently engaged in developing a COS for water
and sewer rates.
In 2015, Raftelis assisted the Olivenhain Municipal Water Dis-
trict (District) in conducting a comprehensive water financial
plan and rate study to determine the water rates charged to its
customers. A water model was developed to assist the District
in evaluating different financing alternatives to minimize rate
impacts and ensure financial stability.
As part of the study, Raftelis recommended several changes
to the District's existing rate structure. While the tiered rate
structures for residential customers were retained, the second
tier cut-off was reduced and a fourth tier was added The
28 of 55 March 19, 2019. Item #4.3
10
CITY OF POWAY
CALIFORNIA EXPERIENCE LL
This table lists the California C a -
utilities that Raftells has assisted : E a 2c" A 5
over the past five years on -0 a "rx Er. s E = '
financial, rate. and/or management a` a d $ o 75 ;
consulting projects. ° 7 N �, a m d Z o
q= E N E a E A E 3 `o
m m m c a E ti
i 0 5 c o u o a o d E 2 E a �
a
Client Q m o a u a cx cc 0 o in C 0 3 >
Alameda County Water District 0 0 • • • O
Anaheim,City of 0 • 0 •
Arroyo Grande,City of 0 • • •
Atwater,City of O • • •
Bakersfield,City of • 0 • •
Benicia,City of O
Beverly Hills,City of • • • • • • •
Borrego Water District • • •
Brea,City of • • •
Brentwood(CA),City of • • • •
CAL FIRE/San Luis Obispo •
Calleguas Municipal Water District • • • • •
Camarillo,City of • • • • •
Carlsbad Municipal Water District • • • • •
Casitas Municipal Water District • • •
Castaic Lake Water Agency • • • • • •
Central Basin Municipal Water District • • • •
Central Contra Costa Sanitary District • • •
Channel Islands Beach Community Services District • • •
Chino Hills,City of • • •
Chino,City of • • •
Chowchilla,City of • • • •
Corona,City of • •
County of San Diego • 0 •
Crescenta Valley Water District • • •
Cucamonga Valley Water District • •
Del Mar Union School District •
Delta Diablo Sanitation District •
East Bay Municipal Utility District • • •
East Orange County Water District • • • •
East Valley Water District • • • •
Eastern Municipal Water District •
El Toro Water District • • •
Elk Grove Water District • • • • • •
Elsinore Valley Municipal Water District I • •
Escondido,City of • 0 • • • •
Galt,City of • • • • •
Glendora,City of •
Goleta Water District • • • •
Goleta West Sanitary District • • • • • •
Helix Water District • • •
Henderson,City of • • •
Hollister,City of • • • -
Holtville,City of • •
Huntington Beach,City of • 0 • 0
Impena'County • 0 5
Inland Empire Utilities Agency •
29 of 55 March 19. 2019, Item #4.3
11
RAFT'cL15
C
d o
LL hi —
= E o raC m 3
a a c c a —
o o a .,m S E a a Zr,
m
c �n 5 va a a, — = O A
a s m n 3
Q v O 7 O .m.
E c m % m CP a, a: a'
O o
N a — E H 73 Ln' ° E c
� o co 0 0 0 o —0 E ° E 3a
u m m m M m
n u n $ ro o a' o m c, a
Client `a ot o o u_ ci cc a u a in 0 0 3 >
Irvine Unified School District 0
Jurupa Community Services District O O • O
Kern County Water Agency O
La Canada Irrigation District 0 0 0
La Habra Heights County Water District • 0 • • 0
Laguna Beach,City of 0
Lake Valley Fire Protection District 0 0 •
Las Virgenes Municipal Water District • • •
Leucadia Wastewater District • •
Livermore,City of 0 • • •
Long Beach City of 0 0 0 0 •
Los Alamos Community Services District 0 • • • •
Los Angeles Department of Water and Power • •
Los Angeles,City of Bureau of Sanitation •
Madera,City of •
Mammoth Community Water District • • •
Marin Municipal Water District •
Merced.City of • • • •
Mesa Water District • •
Metropolitan Water District of Southern California •
Modesto Irrigation District • •
Mojave Water Agency • • •
Monterey County Water Resources Agency • • •
Monterey,City of 7 • • •
Moulton Niguel Water District •
Municipal Water District of Orange County • •
Napa Sanitation District • • •
Ojai Valley Sanitary District • 0 0
Olivenhain Municipal Water District • 0 •
Ontario Municipal Utilities Company •
Ontario,City of • • • •
Orange.City of 0 0 •
Palo Alto,City of • 0 0 0
Phelan Pinon Hills Community Services District 0 • • 0 •
Placer County Water Agency 0 0
Pleasant Hill Recreation&Park District • •
Pomona.City of • 0 O
Rainbow Municipal Water District • 0 •
Ramona Municipal Water District • •
Rancho California Water District
Redlands,City of • C
Rincon del Diablo Municipal Water District • _ •
Riverside Public Utilities • C • 0
Roseville,City of 0 • •
Sacramento Regional County Sanitation District
Sacramento,City of • _
Salton Community Services District • 0
30 of 55 March 19, 2019. Item #4.3
CITY OF POWAY
c
d o
0 2 ]
G of u.— 74N
CO tf
E ° o' V
o C m E 5
a — c _ n
o D c a m o E ' o. c`,
ti .a a = O
Q d 7 V n Q V \ — 7
a Qu V O a 7 C — > c c .u..
A d A d d Q >. Z. d .d. c O
� m maE a ° n n mE 30
'° of — c O 0 3 Q O O ° c n
2 O .Q a rJ Q d S' .x i > o 7
_ a y N c E a a N C d Q a
Client Q ai 0 0 LL cr cr K 0 0 v, D 0 3 >
San Bernardino Valley Municipal Water District 0
San Bernardino,County of 0 O 0 O
San Clemente,City of 0 O 0 O
San Diego,City of Public Utilities Deptartment 0 0 0 O O O O
San Dieguito Water District O O O
San Elijo Joint Powers Authority O O O O 0 O
San Gabriel County Water District O O O
San Gabriel,City of 0 0 0
San Jose,City of O
San Juan Capistrano,City of 0 O O 0 0
Santa Ana,City of O
Santa Barbara,City of • • 0 • 0
Santa Clara Valley Water District 0 • •
Santa Clarita Water District O O • • • •
Santa Cruz.City of • • • •
Santa Fe irrigation District O • • • •
Santa Fe Springs,City of O • O
Santa Margarita Water District • 5 • •
Santa Rosa,City Attorney's Office •
Scotts Valley Water District • • • • • •
Shaffer,City of 0 • •
Shasta Lake,City of • • O •
Sierra Madre.City of 0 • • •
Signal Hill,City of • • O
Simi Valley,City of • O O 5 0
Sonoma,City of 5 • 0
South Mesa Water Company 0 0 O 0
South Pasadena,City of 0 0
South San Francisco,City of a a
Sunnyslope County Water District 0 O 0 0 0
Sweetwater Authority 0 0 0
Temescal Valley Water District O 0 O 0
Thousand Oaks,City of 0 0 0 O
Torrance,City of 0 3
Trabuco Canyon Water District O
Triunfo Sanitation District
Tustin,City of
Union Sanitary District 0 0 3
Ventura Regional Sanitation District 0 0
Ventura.City of ,
Vista,City of
Walnut Valley Water District 0
Watsonville,City of O 0 3
West Basin Municipal Water District 0
Western Municipal Water District
Yorba Linda Water District
Zone 7 Water Agency O
31 of 55 March 19, 2019, Item #4.3
PROPOSED TEAM,ORGANIZATION CHART,8 STAFF RESUMES
Proposed
WE HAVE DEVELOPED A TEAM OF Our team includes senior-level
CONSULTANTS WHO SPECIALIZE IN professionals to provide experienced
THE SPECIFIC ELEMENTS THAT WILL project leadership, with support from
talented consultant staff. Our team
BE CRITICAL TO THE SUCCESS OF has frequently collaborated on similar
THE CITY'S PROJECT. successful projects, providing the City with
confidence in our capabilities.
Here, we have included an organizational
chart In the following section, Qualifications
of Proposed Staff, we have included
detailed resumes of our team members.
CITY OF
POWAY
PROJECT MANAGEMENT TECHNICAL REVIEWER
Hannah Phan
PROJECT MANAGER
Sudhir Pardiwala, PE
ASSISTANT PROJECT MANAGER
Andrea Boehling
STAFF CONSULTANTS
Lauren Demine & Charles Diamond
32 of 55 March 19, 2019, Item #4.3
CITY OF POWAY
Sudhir Pardiwala PE
Project Manager
Executive Vice President
SPECIALTIES
• Cost of service rate studies ROLE
• Conservation and drought Will be responsible for overall project accountability, and will be available to
management studies provide insights into various cost of service and rate-setting matters.. Mr Pard-
• Economic analyses iwala will serve as the City's main point of contact for the project
• Water and wastewater utility cost
accounting PROFILE
• Valuation
• Financial and revenue planning Mr Pardiwala has 40 years of experience in financial studies and engineering
• Assessment engineering He has extensive expertise in water and wastewater utility financial and revenue
• Reviewing/obtaining capital planning, valuation, and assessment engineering. He has conducted numerous
improvement funding water,wastewater, stormwater. and reclaimed water rate studies involving con-
• Computer modeling servation, drought management, risk analysis, as well as system development
fee studies, and has developed computerized models for these financial eval-
PROFESSIONAL HISTORY uations. Mr. Pardiwala has assisted public agencies in reviewing and obtaining
• Raftelis. Executive Vice President alternate sources of funding for capital improvements, including low-interest
(2013-present); Vice President(2004- state and federal loans and grants. He has assisted several utilities with State
2013) Revolving Fund and Water Reclamation Bond loans. Mr. Pardiwala co-authored
• Black&Veatch. Principal Consultant the chapter on reclaimed water rates in the Manual of Practice No. 27, Financing
(1997-2004) and Charges for Wastewater Systems, published by the Water Environment
• MWH Principal Engineer(1985-1997) Federation(WEF) He also authored a chapter entitled, "Recycled Water Rates,"
• CF Braun. Senior Engineer(1979- for the Fourth Edition of the industry guidebook, Water and Wastewater Finance
1985) and Pricing The Changing Landscape. Mr. Pardiwala was vice-chairman of the
• PFR Engineering Systems: Research CA-NV AWWA Business Management Division and Chairman of the Financial
Engineer(1977-1979) Management Committee.
EDUCATION RELEVANT PROJECT EXPERIENCE
• Master of Business Administration -
University of California, Los Angeles City of Redlands (CA)
(1982) Mr. Pardiwala has managed several financial projects for the City of Redlands
• Master of Science in Chemical (City) including water, wastewater and reclaimed water projects. The studies
Engineering -Arizona State University were conducted with extensive stakeholder input and multiple meetings with a
(1976) Utilities Advisory Commission composed of local residents, businesses, and
• Bachelor of Science in Chemical other interested parties The first rate studies involved significant rate adjust-
Engineering - Indian Institute of ments as well as rate structure adjustments to ensure financial stability, meet
Technology. Bombay (1974) debt coverage and regulatory requirements. The analysis included calculation
of outside-City charges and impact fees The City received user-friendly work-
PROFESIONAL REGISTRATIONS ing rate models for future updates Mr. Pardiwala assisted the City with State
• Registered Professional Engineer: CA Revolving Fund loans for reclaimed water and potable water. He helped them
(Chemical (1981)and Civil (1988)) find grants for the reclaimed water project and water treatment plant upgrade.
He has been assisting the City biennially with their water,wastewater and recy-
PROFESSIONAL MEMBERSHIPS cled water rates
• American Water Works Association
• Water Environment Federation City of San Diego (CA)
• California Municipal Finance Officers Mr Pardiwala conducted numerous studies for the City of San Diego (City),
Association including a water, wastewater and reclaimed water rate study. The entire
wastewater rate study was conducted with extensive stakeholder group
CERTIFICATIONS involvement because of the changes required in the wastewater rate structure
• Series 50 Municipal Advisor to meet regulatory requirements. In addition, Mr. Pardiwala served as project
Representatr manager for the City's reclaimed water rate study, impact fee studies for both
33 March 19, 2019, Item #4.3
15 RAFTELIS
water and wastewater, and a transportation charges study service charges, booster pumping rates, strict adherence to
for agencies contributing to the City's regional wastewater cost of service principles. The study was conducted with the
facility. Mr. Pardiwala also managed a water demand study participation of a citizens'advisory committee. Raftelis devel-
which involved statistical analysis of historical water con- oped an user friendly rate model. provided City staff training
sumption to model projections based on weather, economic on use of the model The proposed rates were implemented
activity, population, inflation, etc. Mr Pardiwala evaluated July 1, 2012 Raftelis assisted The City with an update devel-
the feasibility of a water budget rate structure for the City oping conservation rates with the State mandated reductions
He assisted the City with the Proposition 218 noticing and in usage.
public outreach.
City of Santa Barbara (CA)
Olivenhain Municipal Water District (CA) Mr. Pardiwala has been assisting the City of Santa Barbara
Mr. Pardiwala assisted the Olivenhain Municipal Water Dis- (City)with their water, wastewater and recycled water finan-
trict (District) in conducting a water financial plan study and cial plans and cost of service rates studies involving rates for
a recycled water rate study to determine the recycled water different customer classes including agriculture, outside City,
rates charged to customers The water financial planning tiered residential, commercial etc. Wastewater rates were
model was developed to assist the District in evaluating developed for various funding sources including grants and
different financing alternatives to minimize rate impacts and SRF loans. The City is facing severe water supply short-
ensure financial stability. The water model was effectively ages and water rates included evaluation of multiple drought
used in Board meetings and presentations to evaluate the stages, the rates and impacts on customers as well as fund-
impacts of various scenarios. Additionally, Raftelis calculated ing desalination to provide adequate supplies for the City's
drought/conservation rates for different stages of cutbacks. customers Raftelis also evaluated system capacity fees for
The recycled water rate study was conducted to determine new water and wastewater customers.
the recycled water rates charged to customers given that the
District obtains recycled water from four different sources: City of Sacramento (CA)
the City of San Diego, Vallecitos Water District, Rancho Mr. Pardiwala managed a wastewater rate study to examine
Santa Fe Community Services District. and the 4S Regional the charges associated with different types of residential and
Recycled Water System.The existing agreements defined the non-residential customers. The study included a comprehen-
costs of different sources of recycled water to the District. To sive review of the City's revenue requirements and allocation
address all of those issues and concerns. Raftelis developed methodology, review of City's user classification, a cost of
a recycled water financial and rate model to determine the service analysis, and rate design for City users. Sacramento
costs of providing service and the required revenue to be is one of the few large Cities in the State that does not meter
collected from customers. In addition, the model is built to residential and a significant number of non-residential cus-
evaluate when the District is able to take over the 4S Regional tomers The strength and flow allocation to these customers
Recycled Water System, as stated in the agreement with the was revised. The resultant rates were fair and equitable and
developer. met the fiscal needs of the City's wastewater utility in the con-
text of the City's overall policy objectives and were designed
City of Ontario (CA) for simplicity of administration, cost effective implementation
Mr. Pardiwala served as Project Manager on multiple water, and ease of communication to customers.
wastewater and solid waste rate studies. The study included
a comprehensive review of the City of Ontario's revenue City of Beverly Hills (CA)
requirements and allocation methodology, review of user Mr. Pardiwala served as Project Manager for Raftelis'
classifications, a cost of service analysis, and rate design engagement with the City of Beverly Hills (City) water and
for City users. wastewater rate studies. Raftelis was engaged by the City
to develop a rate and financial planning model that would
Raftelis designed tiered water rates, recycled rates and be used to evaluate alternative rate structures and to pro-
wastewater rates considering IEUA rates. Solid waste rates vide more detailed forecasts to assist in the preparation of
were designed to recover costs. Raftelis provided the City updating rates in future years. Raftelis modeled numerous
with a model that is used for planning purposes by the City. alternative rate structures and reviewed customer and rev-
The City has engaged Raftelis multiple times to update these enue impacts before recommending that the City modify its
rates, optimize water sources to minimize costs current three tiered rate structure to include a fourth tier that
targets large irrigation usage. In addition, Raftelis recom-
City of Palo Alto (CA) mended that the costs of service based on flow and strength.
Mr. Pardiwala was Project Manager for a study for the City Raftelis continues to provide biennial updates to the City
of Palo Alto(City)to determine the cost of service rates con- model so that rates may be projected in future years.
sistent with Proposition 218 The study involved review of fire
34 of 55 March 19, 2019, Item #4.3
15 CITY OF POWAY
City of Ventura (CA) There are multiple outreach meetings with member agen-
Mr Pardiwala served as Project Manager for a water, waste- cies and interested stakeholders to educate them on the
water, and recycled water cost of service and rate study for process and to obtain buy-in.
the City of Ventura (City). The City had not updated its rate
structure in 20 years. Additionally, the City was under a Vallejo Flood and Wastewater District (CA)
cease and desist order that required the City to carry out Raftelis assisted the Vallejo Flood and Wastewater District
improvements estimated at more than$55 million, and which (District)with a comprehensive wastewater rate and connec-
the City wanted to start funding to mitigate impacts The goal tion fee study (Study) The District an independent special
of the study was to develop conservation-oriented rates con- district that collects, treats, and disposes of wastewater for
sistent with cost of service to recover adequate revenues to 38,000 accounts in the City of Vallejo with a service area that
pay for necessary capital improvements, meet debt service covers 36 square miles and includes one wastewater treat-
coverage requirements, as well as maintaining sufficient ment plant and 36 wastewater pump stations. The existing
reserve requirements. The study included a comprehensive sewer rate structure comprised of flat rates for all residential
review of the City's revenue requirements and allocation customers, including single and multi-family residences. For
methodology, review of the City's user classification, usage commercial customers, rates were based on both flow and
patterns, a cost of service analysis, and rate design for City sewage strength. The District was moving over to a service
users. Raftelis developed long-range financial plans so that charge to be levied on the property tax roll_ Raftelis was
the water and wastewater utilities could be financially stable called in to assist with this study after another consultant's
and save costs in the long run. We also assisted the City with study was found to be unacceptable to the District. As part
developing different water and wastewater rate alternatives of the study, Raftelis thoroughly examined the District's
with various scenarios as well as calculating outside-city revenue streams, cost structure, analyzed customer data,
rates. The study was conducted with several meetings and and developed an equitable rate structure that met both
input from stakeholders comprised of customers within the Proposition 218 requirements and the District's goals and
City. Raftelis educated the Citizen Advisory Committee on objectives. An important part of the study was the evalua-
the basics of rates, cost allocations, and rate design to obtain tion of the commercial customer classifications to ensure
their buy-in through the use of the dashboards in the rate that customers were accurately categorized by strength and
models we developed for them to demonstrate the impacts of assessed the appropriate rates. Raftelis also created a user-
various revenue adjustments on the long-term financial sta- friendly model so that various scenarios could be evaluated
bility of the enterprises. Raftelis also developed a schedule on the fly. Additionally, Raftelis also reviewed and updated
for funding a major wastewater program required by environ- the District's connection fees. Upon completion of the rates
mental groups. Recommended rates were implemented for calculation, Raftelis assisted the District in a comprehensive
two years in July 2012. Raftelis updated rates for the City in public outreach campaign to obtain customers buy-in, which
2014 and provided water drought rates. was crucial in the successful implementation of the proposed
rates for fiscal year 2019.
Goleta West Sanitary District (CA)
Mr. Pardiwala has been Goleta West Sanitary District's(Dis- City and County of San Francisco (CA)
trict)financial consultant for over more than 15 years During The City conducts water, wastewater and stormwater
that time he has assisted the District with financial planning, studies every five years to ensure that charges are con-
development and financing their replacement and refur- sistent with cost of service and conforms with the City's
bishment program, developing a rate structure, annexation Propositions. Mr. Pardiwala served as Project Manager
fees, connection fees, miscellaneous fees, reserves policy for two cycles of rate studies for the City. The City has a
development, and other financial issues. The District charges combined wastewater and stormwater system and costs for
customers on the tax roll Raftelis developed the data to be stormwater are integrated with wastewater. The City was
included on the tax roll and the District now manages it engaging in a multi-billion dollar capital improvement pro-
gram that would have significant impact on rates. The City
Clark County Water Reclamation District (NV) has unique microclimates and Raftelis analyzed the water
Mr. Pardiwala was Project Manager for a cost of service usage characteristics of single family and multi-family users
study for the Clark County Water Reclamation District to develop a rate structure that would provide incentives for
(District) to help evaluate the current system of rates and conservation. Raftelis evaluated incentives to encourage
charges to ensure that users were being charged appropri- low impact development, reviewed stormwater practices to
ately. The District has not updated its rate structure system provide credits for best management practices to reduce
for many years and the current system based on fixture stormwater generation. Raftelis performed an overhead
units is believed to need restructuring. Raftelis managed cost allocation study consistent with federal requirements of
the sampling and wastewater flow monitoring from different OMB Circular A-87 to assign costs appropriately to different
types of users to determine the definition of an equivalent departments in order to obtain federal reimbursement for
dwelling unit and the flows from different types of users. projects that are eligible for federal assistance
35 of 55 March 19. 2019, Item #4.3
PA= =L:S
Napa Sanitation District (CA) City of Portland (OR)
Mr. Pardiwala was Project Manager for a recycled water rate The City of Portland (City) wanted a financial planning and
study for the District. The District was required to restrict rate model to determine rates for its wholesale and retail
summer discharge of its wastewater into the river. The Dis- customers. Mr. Pardiwala served as Project Manager for this
trict had made improvements to its treatment plant to produce study. The City
recycled water and provided incentives to recycled water cus- provided wholesale water to 19 agencies under old agree-
tomers to use the water. Agreement with customers were to ment that were expiring soon. The City was finalizing
end within a couple of years and the District wanted to enlarge long-term agreements with explicit terms on rate setting
the recycled water facilities and enroll new customers into the The City wanted to develop rates consistent with the new
recycled water program. The District wanted to review the agreement for the wholesale agencies, review rate structure
economics of the improvements and determine the impacts alternatives for its retail customers, review impacts and pro-
resulting from implementing new recycled water rates. Rafte- vide flexibility for planning for the next 20 years
lis developed a financial and rate model that considered the
new customers and revised rates and the impact of providing The City's existing retail rate structure consisted of an
discounted rates on wastewater customers The District held increasing 3-tier rate structure for all customers with fixed
meeting with the recycled water users and obtained input on tiers for single family customers and tiers based on the
issues of concern to them. Raftelis provided support to the average usage in the preceding 12-month period for the
District and evaluated the results of the surveys conducted to remaining customers. The current retail rates applied to all
define the rates. classes and did not take into account peaking which factors
can vary significantly from class to class. Raftelis developed
City of Henderson (NV) alternative rate structure options for retail customers and
Mr. Pardiwala served as Project Manager for the engage- explore the creation of more classes to increase equity
ment with the City of Henderson (City). In Phase I, Raftelis and fairness and encourage conservation. Alternative rate
assisted the City in conducting a water and wastewater finan- structures included uniform volume rates, seasonal rates,
cial assessment Raftelis developed a financial vision which increasing and "V" or"U" shaped block rates, and a range
will ultimately shape the utilities for the next ten years. As of individualized block rates with cutoffs based on average
part of our conceptual design process, Raftelis recommended account usage, seasonal usage, or customer characteristics.
several alternative rate philosophies to be evaluated as part of Raftelis provided the City with the computer model and pro-
Phase II. The Model was also developed to evaluate certain vided training and a manual in the user of the model.
rate philosophies and user charge structure modifications
focused on improving the equitable recovery of costs from In 2012, Mr. Pardiwala managed a bond feasibility study for
different user classes, legal defensibility of the rates and the City's Bureau of Environmental Services. The City needed
system development charges, revenue predictability, and to issue bonds for several hundred million dollars to meet reg-
conservation incentives. Raftelis developed an allocation or ulatory requirements related to its wastewater and stormwater
budget for different meter sizes to ensure that the tiered rates systems. Raftelis met with City staff and reviewed the CIP,
set up would fairly collect revenues from customers. Raftelis business processes, rates and rate setting procedures, and
updated the City's financial plan by participating in the City's provided a certificate of parity showing that the City could
rate implementation process This included presentations of meet its coverage requirements under the current rates so
final findings and recommendations to City Council and the that the City could sell bonds with a good rating_
Citizen's Advisory Committee
City of Tacoma (WA)
City of North Las Vegas (NV) Mr. Pardiwala was Project Manager for a study to develop
Mr Pardiwala was the Project Manager for the water and financial plans and rate models for the City's Environmen-
sewer financial planning and rate study conducted for the tal Services including wastewater, surface water and solid
City of North Las Vegas (City). At the time, the City had waste utilities. The study involved development of user
experienced rapid growth and had a significant amount of friendly financial and rate planning models that would allow
capital projects including construction of their own treat- the City to update rates on an annual basis, quickly make
ment plant. The City faced many financial challenges at a changes, and review rates. The model also provided capa-
time when there were signs of a slowing economy. Raftelis bility to compare the status of the CIP, and actual revenues
conducted a multi-year financial plan that examined various and expenses against budgets on a month by month basis.
customer growth, capital funding. and rate revenue assump- To make this process easy, the model was integrated with
tions Raftelis prepared rate models for both water and the City's SAP and E Builder system. The financial plan and
wastewater and trained City staff on their use. The models rates were reviewed with input from the City's Environmental
provided dashboards for ease of use and decision making. Services Commission. Raftelis turned over the models to the
City, provided training and computer manuals in the use of
the models
36 of 55 March 19, 2019, Item #4.3
18 CITY OF POWAY
Mr. Pardiwala also provided financial planning models to the • City of Burbank(CA)-Bond Feasibility Study, Reclaimed
City's water utility, which included user-friendly features and Water Study, and Water and Wastewater Rate Study
benchmarking tools to maximize improvements in operations • City of Carlsbad (CA) - Asset Replacement Study and
and management. Water,Wastewater and Reclaimed Water Revenue Program
• City of Chino(CA)-Valuation Study and Water Rate Study
City of Los Angeles (CA) • City of Chowchilla (CA) - Water and Wastewater Rates
Mr. Pardiwala was Project Manager on studies to develop Study
rates and rate models for solid waste and wastewater util- • Clark County Water Reclamation District (NV) - Cost of
ities. The City wanted to have a planning tool in-house to Service Study
evaluate what if scenarios, impacts and determine rates • City of Cloverdale(CA)-Water and Wastewater Connec-
for various customers. The model incorporated many user tion Fees and Rate Study
friendly features to assist the City update rates and prepare • City of Corona (CA) -Water and Wastewater Rate Study
financial plans on an annual basis Solid waste rates included • El Toro Water District (CA) - Water Budget and Waste-
non-residential customers based on size of containers and water Rate Studies and Connection Fees
frequency of collection. • City of Encinitas(CA)-Water and Wastewater Rate Study
• City of Escondido (CA) - Valuation Study, Water and
Wastewater rates to the 27 subscribing agencies discharging Wastewater Rate Study
to the City's wastewater treatment facilities were also deter- • City of Glendora (CA) -Water and Wastewater Financial
mined. This involved complex calculations and allocations to Planning and Rate Study
wastewater loadings, conveyance distance, etc. Connection • La Canada Irrigation District-Water Rate Study
or impact fees were also included in the model. User training. • La Crescenta Water District - Water and Wastewater
model documentation, regular updates and ongoing service Rate Study
were also included in this project • City of Livingston (CA) - Water, Wastewater and Solid
Waste Rates Study and Litigation Support
Mr. Pardiwala also served as Project Manager on a wheeling • City of Madera (CA)-Water and Wastewater Rate Study
charges study for the Los Angeles Department of Water and • Mammoth Community Water District (CA) - Water and
Power. The City was interested in determining the appro- Wastewater Rate Study
priate charges to be levied on various customers that may • Metropolitan Wastewater Joint Powers Authority (CA)
wish to use the extra capacity in the City's system—from - Wastewater Valuation Study and Capacity Valuation
the Los Angeles Aqueduct to the distribution network—to Study
transfer water. • Ojai Valley Sanitary District-Wastewater Rate Study
• Palmdale Water District(CA)-Water Budget Rate Study
City of Pasadena (CA) • City of Palo Alto (CA)-Water Rate Study
Mr. Pardiwala was Project Manager for a study for the City • City of Poway(CA)-Wastewater Rate Structure Analysis
of Pasadena (City) to determine roll-out charges for solid • Ramona Municipal Water District (CA) - Water Rate
waste services provided by the City. Certain customers in Study
the City needed assistance with rolling out their containers • Rainbow Municipal Water District(CA)-Water,Wastewa-
and replacing them again. Mr. Pardiwala analyzed the costs ter Rate and Capacity Fee Studies
associated with this service and set up a charge for it • City of Rialto(CA)-SRF Funding and Water and Waste-
water Rate Study
OTHER RELEVANT PROJECT EXPERIENCE • County of San Bernardino (CA) - Water and Wastewater
Rate Study and Connection fees
• City of Anaheim (CA)-Water Rate Study • City of San Fernando (CA) - Water and Wastewater
• City of Atwater(CA)-Water and Wastewater Rate Study Rates Study
• City of Banning (CA)-Recycled Water Revenue Program - San Gorgonio Pass Water Agency (CA)- Financing Plan
• Beaumont Cherry Valley Water District(CA)-Water Rate • City of San Jose (CA) -Sewer Service Related Fees and
and Connection Fee Study Charges
• Carpinteria Sanitary District-Wastewater Rate Study • City of Santa Fe springs-Water Rate Study
• Casitas Municipal Water District-Water Rate Study • Santa Fe Irrigation District (CA) -Wastewater Treatment
• Castroville Water District (CA) - Water and Wastewater Plant Cost Evaluation, Water Connection Fees Study. and
Rate Study Water Rate Study and Update
• City of Brea (CA) - Water Rate Study, Connection Fees • City of Santa Monica (CA) -Wastewater Rate Study
and Related Fees and Charges Study • City of South Pasadena (CA) - Water and Wastewater
• City of Brentwood (CA) - Water and Wastewater Rate Rate Study
Study • City of Springfield (OR)-Wastewater Rates Model
• City of Buenaventura(CA)-Water and Wastewater Rate • Sweetwater Authority (CA) -Water Rate Study
Study 37 of 55 • City of Vallejo(CA) -Water Financial Plan
March 19, 2019, Item #4.3
RAFTELIS
Andrea Boehling
Assistant Project Manager
J — Manager
SPECIALTIES ROLE
• Financial planning and
feasibility studies Will manage the day-to-day aspects of the project ensuring it is within budget, on
• Cost of Service— Utility Rate schedule, and effectively meets the City's objectives She will also lead the consulting
Studies and User Fees staff in conducting analyses and preparing deliverables for the project.
• Special District Formation
• Special tax and assessment PROFILE
modeling Mrs. Boehling has a strong background in mathematics and accounting and has been
• Capacity Fee Studies serving public agencies for more than 12 years. She possesses extensive analytical
• Cost analysis and cost and modeling skills which she has used to perform various financial analysis such
allocation plan modeling as cost of service user fee studies, utility rate studies, fiscal impact analysis, special
• Proposition 218 district formations, cost allocation plan modeling, etc. Mrs. Boehling is well-versed
• Compliance auditing with the cost of service principles and special benefit provisions of Proposition 218.
• Data analysis In addition, with over 6 years of experience in the auditing field, she is very familiar
with monitoring and evaluating compliance with regulations, performing data analysis,
PROFESSIONAL HISTORY and performing data integrity testing.
• Raftelis. Manager(present),
Senior Consultant (2017- Together with Mr Pardiwala, Ms. Boehling co-authored the chapter on reclaimed
2018); Consultant(2014-2016) water rates in the Manual of Practice No. 27, Financing and Charges for Wastewater
• Willdan Financial Services: Systems, published by the Water Environment Federation (WEF).
Financial Analyst 11 (2012-
2014) RELEVANT PROJECT EXPERIENCE
• State of Tennessee: Legislative
Information Systems Auditor II Leucadia Wastewater District(CA)
(2006-2012) Mrs Boehling, serving as project manager, assisted the Leucadia Wastewater District
with developing a long-term sustainable financial plan, determined the costs of pro-
EDUCATION viding services, updated wastewater rates, and reviewed and evaluated the District's
• Bachelor of Science in capacity fees. The study incorporated the recently completed Asset Management
Business Administration Plan Update, reviewed and updated reserve targets to ensure financial stability,
with a major in Accounting examined various capital replacement scenarios, demonstrated the impacts related
—University of Alabama in to growth and debt financing, and analyzed the impacts of continuing the District's
Huntsville (2005) current practice of three years of revenue adjustments followed by three years without
• Studied Computer revenue adjustments. Mrs. Boehling hosted several workshops and presented the
Engineering, DeVry University results to the Board. The financial plan, rate study, and capacity fee were successfully
(2000-2002) adopted in early May of 2018.
PROFESSIONAL Temescal Valley Water District (CA)
MEMBERSHIPS In 2016, the Temescal Valley Water District (District) engaged Raftelis to conduct a
• California Society of Municipal comprehensive water, recycled water, and wastewater rate study. The main objectives
Finance Officers of the study were to ensure financial sufficiency, meet operation and maintenance
• Water Environment Federation costs, and to ensure funding for both capital and reserves. Mrs. Boehling served
as Lead Consultant and was responsible for gathering and analyzing data, creating
each enterprise's financial plan and rate model, developing several rate scenarios,
presenting results to the Finance Committee and Board of Directors, and drafting
the detailed report highlighting the decisions made and the explaining the calculation
of the final rates. As part of the study, Raftelis evaluated interfund loans from one
enterprise to another with varying repayment terms, modeled various rate structures,
and explored seasonal rates for the recycled enterprise. The Public Hearing was held
in January 2017 and the proposed rates were successfully adopted
38 of 55 March 19, 2019. Item #4.3
20 CITY OF POWAY
In early 2018, the District engaged Raftelis to conduct a water systems. Mrs. Boehling served as lead consultant and
financial plan update. Mrs. Boehling updated the water finan- was responsible for leading consulting staff in data analysis,
cial plan model to reflect actual revenues and expenditures model development. drafting the reports, and assisted the
for FY 2016 and FY 2017, revised usage characteristics of project manager with presenting the results of the study at
the District's customers, and incorporated updated capital public meetings Raftelis recommended that the City adjust
improvement plans. The District experienced a rather sig- revenue by 5%for each of the next five years and incorporate
nificant increase in usage during FY 2018 due to growth a pass-through provision for increased costs incurred from
and an increase in usage patterns from existing customers their wholesaler, Zone 7 Water Agency. In addition, Raftelis
We recommended only passing through increased costs of provided recommendations to the rate structure to ensure
purchasing water for the FY 2019 rates and continuing to compliance with the cost of service principles of Proposition
annually update the financial plan to determine the neces- 218. Residential switched from a three-tiered rate structure
sary rate adjustments. to a two-tiered rate structure and Non-Residential rates were
adjusted from a tiered rate structure to a uniform rate structure
City of Galt(CA) as Non-Residential commercial uses and related water needs
In early 2015. the City of Galt (City) hired Raftelis to con- can vary drastically between accounts The Rate Study and
duct a comprehensive cost of service analysis and water all recommendations were approved at a Public Hearing held
rate study. The City was in the process of metering all cus- on June 26, 2017.
tomers and had previously had a flat rate for all unmetered
customers. The main goal of the study was to establish a Rainbow Municipal Water District(CA)
uniform commodity rate and fixed monthly charge for all In 2015. Mrs. Boehling served as Lead Consultant for Rain-
customers that would generate the same level of revenue bow Municipal Water District's (District) comprehensive
as their existing rate structure. Mrs. Boehling served as Lead cost of service-based water rate study. The study involved
Consultant and was responsible for developing the financial developing a long-term financial plan, consumption analysis
plan and rate model capable of evaluating several scenar- cost of service analysis, and rate structure development The
ios. Mrs Boehling gathered all necessary data, developed rate structure included many components such as a fixed
the financial plan, created a model capable of adjusting the monthly operations and maintenance charge, a fixed pass-
expected water demand, worked closely with City staff to through charge to recover the costs imposed by the San
project expected water sales, documented the results of Diego County Water Authority, commodity rates (including
the study, performed customer impacts, and assisted with special agriculture rates, tiered commodity rates for sin-
presentations to the City. The proposed rates were adopted gle-family residential customers and agriculture customers
on March 14, 2016 with a residence on the property, uniform rates for non-sin-
gle family residential customers), and pumping charges to
After successful completion of the water rate study, in early account for the costs to pump water to higher elevations.
2017, Mrs. Boehling began working on a comprehensive Mrs. Boehling was responsible for data collections, model
wastewater rate study for the City The goal of the project development, collaboration with the client, presentations
was to evaluate several cost allocation and rate structures to the Finance Committee and Board, model training, and
to ensure compliance with Proposition 218. Mrs Boehling drafting the report
served as Lead Consultant and managed the consulting staff
in conducting analysis and preparing project deliverables. Mrs. Boehling continues to work with the District on an
The study was completed, and proposed rates adopted in on-going basis. She assisted with the preliminary budget
November of 2017. process in 2015, annual updates in 2016 and 2017. and
served as Lead Consultant for a new water and wastewater
City of Livermore (CA) rate study in late 2017. The updated water rate study focused
Mrs. Boehling completed a comprehensive cost of service on ensuring revenue sufficiency. continuing to pass-through
water and wastewater rate study for the City of Livermore purchased water costs and increases in energy costs, and
(the City), which concluded in June 2017 with unanimous examining alternative rate structures including a consump-
approval of the proposed rates. The City historically set their tion-based fixed charge. The wastewater rate study focused
rates internally and wanted to receive an independent review on ensuring revenue sufficiency, ensuring rates were fair
and updated to its rates from an outside firm specializing in and equitable, and evaluated various rate structures to more
utility rates. Like many water agencies in California, the City closely tie to the recently completed capacity fee structure.
was faced with challenges related to the reduction in water Results of the study were presented to the District and the
usage as a result of conservation, the slow economy, and proposed rates were successfully adopted
increasing water supply costs from Zone 7 Water Agency. The
City was operating in an environment where operational costs City of Santa Cruz (CA)
and external costs associated with imported water continue to The City of Santa Cruz Water Department (City) currently
increase and a new Asset Management Plan study identified provides water service to a population of approximately
critical reinvestments necessary for both the water and waste- 93,000. The City is faced with increasing operation and
39 of 55 March 19, 2019, Item #4.3
21 RAFTELIS
maintenance costs. a significant projected capital program class to ensure Proposition 218 compliance and financial
over the next 10 years, and volatile water sales due to the sufficiency.
drought. Raftelis is currently working on a series of projects
for the City to help ensure financial sustainability of the City's Helix Water District(CA)
water system. Mrs. Boehling served as Lead Consultant on The Helix Water District (District) hired Raftelis to conduct
the City's comprehensive water rate study. She worked at a comprehensive cost of service analysis and financial plan
the direction of the Project Manager to assist the City in update. The last cost of service study was conducted back
evaluating various rate structures including water budget in 1988 and needed to be updated to be in compliance with
rates. She developed a dynamic model capable of instantly Government Code Section 54999.7(c). Mrs. Boehling's
changing the recovery mechanisms and assisted the City as responsibilities included supporting project managers and
they evaluated 6 different rate scenarios. The rate structure conducting fiscal analysis, data compilation, and modeling.
includes an analysis to determine the allocation to inside Various rate structures, components, and objectives were
customers versus outside customers, allocations by class, evaluated, and cost of service-based rates were developed.
and tier. In addition, she worked with the City to develop The study incorporated a pass-through component to clearly
a separate Infrastructure Reinvestment Charge to help identify and account for San Diego County Water Authority
finance the significant repairs and replacements. She was costs which are outside of the District's control. Mrs. Boehling
responsible for all data collections, consumption analysis, assisted with the preparation of the study report and helped
model development, customer impacts, presentations, and ensure the Proposition 218 noticing requirements were met
drafted the report following the final rate selection. Rates Rates fora five-year period were adopted in October of 2015,
were approved and adopted on August 23, 2016.
Raftelis was hired to perform annual updates of the financial
Western Municipal Water District(CA) plan. Mrs Boehling continues to work closely with the District
Raftelis has been assisting Western Municipal Water Dis- and Project Manager to complete the annual updates. She
trict (District) with several projects spanning many years. added enhancements to the model to assist the District in
Most recently, Mrs. Boehling served as Lead Consultant evaluating whether or not the District needs to implement the
on the development of comprehensive water budget rate full rate increase as adopted in 2015 or whether a lower rate
structure for each of the District's retail service areas. She adjustment is sufficient.
created presentations and helped facilitate discussions
on the policy options associated with the development of East Valley Water District(CA)
water budget rates. Based on these policy options, Mrs. Mrs. Boehling assisted with a 10-year financial plan and
Boehling developed a flexible rate model that could easily water rate study for the East Valley Water District. Raftelis
analyze different methodologies of allocating water sources designed a water budget rate structure which ensured reve-
to different customer classes, different allocation factors for nue stability, financial sufficiency, and provided appropriate
indoor and outdoor water use, determined price ratios for price signals for different supply costs, peaking costs, and
the corresponding tiers, and developed the corresponding conservation program funding for the District. Mrs Boehling
rates and customer impacts Mrs. Boehling worked closely worked in support of the project manager to develop a water
with the Project Manager and District Staff to evaluate sce- budget rate model developed that allowed the District to
narios and refine the rate structure. She was available for quickly view the impacts of alternative rates and budgets to
questions during the Public Hearing where the rates were assist policy makers in making well-informed decisions in a
successfully adopted timely manner She was responsible documenting the study
results and drafting the study report.
Rincon del Diablo Water District(CA)
Like many water agencies in California, Rincon del Diablo
Water District (District) was faced with challenges related CAPACITY FEE STUDIES / WATER
to the reduction in water usage as a result of conservation, DEMAND OFFSET STUDIES
the slow economy, increasing water supply costs, and the
recent Executive Order by Governor Brown to reduce water Leucadia Wastewater District (CA)
consumption by 25% statewide RAFTELIS was hired to In 2017, Raftelis was engaged by the Leucadia Wastewater
conduct a comprehensive cost of service water rate study District(District)to conduct a wastewater capacity fee study.
and develop a financial plan to help achieve a strong finan- Mrs. Boehling served as Project Manager and worked closely
cial outlook in future years Mrs. Boehling served as staff with the District to review and update the District's capacity
consultant and assisted with data collection, financial plan fees. She recommended utilizing the buy-in approach given
analysis, model development, rate design, and drafted the the wastewater system is nearly built-out and has suffi-
study report. The study incorporated a pass-through compo- cient capacity to accommodate the remaining anticipated
nent to allow the District to pass on increased imported water connections. Raftelis utilized the replacement cost less
costs to their customers without having to undergo the rate depreciation method of valuing the wastewater system and
adjustment process In addition, the study adjusted target included the capital replacement reserve balance to account
reserves and modified the rate structure for each customer for contributions by existing customers towards future repairs
40 of 55 March 19, 2019, Item #4.3
22 CITY OF POWAY
and replacements. Mrs. Boehling guided consulting staff in ment by the City/District in the EWA treatment plant. current
developing the flexible capacity fee model, hosted work- reserves, outstanding debt obligations, and current demand
shops with District staff, and presented the results to the or capacity of the system. Mrs. Boehling was responsible
Board In addition. she recommended the District adjust the for data collection, model development, leading staff discus-
capacity fees annually to keep pace with inflation by applying sions, and writing the study report.
the Engineering News Record Construction Cost Index. The
proposed capacity fees were successfully adopted in June Rancho California Water District(CA)
of 2018. Mrs. Boehling assisted Rancho California Water District
(District) in evaluating a New Water Demand Offset Fee. The
Temescal Valley Water District(CA) New Water Demand Offset Program is a form of funding of
In 2016, Raftelis was engaged by the Temescal Valley conservation measures that will help to create sustainable,
Water District (District) to conduct a water, recycled water, zero water footprint development. New developments will pay
and wastewater capacity fee study. Mrs. Boehling served fees called New Demand Offset Fees to create potable water
as Lead Consultant on this project and worked closely with savings in the existing system to support water demand gener-
District staff to group each asset by enterprise and then ated by new developments. Water savings can be achieved by
further classify each asset by category (such as pumping. converting irrigation accounts to recycled water. installing high
treatment, meters, transmission, etc ) Assets that were efficiency retrofits to replace insufficient fixtures for existing
shared were allocated appropriately to each enterprise. The accounts in the District, converting high water use landscaping
water capacity fees were updated using a hybrid approach to California native landscaping, or even the conversion of
where the buy-in component considered the value of existing agriculture crops Mrs. Boehling was responsible for creating a
water assets, a portion of the recycled storage assets, and flexible model that was capable of evaluating several different
the existing demand, and the incremental component consid- options and measures and assisted in the presentation of the
ered the growth-related capital projects and the incremental fees to the Finance Committee
capacity. The recycled capacity fees utilized the buy-in
approach and the wastewater capacity fees were updated Western Municipal Water District(CA)
using the hybrid approach. Mrs. Boehling created a dynamic In 2014, the District engaged Raftelis to update the capac-
model capable of making on-the-fly adjustments and evalu- ity fees for its retail water, wastewater, and recycled water
ating different methodologies. She was also responsible for services. Mrs Boehling updated and refined the capacity
drafting the capacity fee report and presenting results to the fee model to incorporate the most current information includ-
Finance Committee and the Board of Directors. ing the most recent Master Plans for each of the District's
service areas. The updated model evaluated different policy
City of Santa Cruz (CA) options and examined various methodologies. Based on the
In 2015, Raftelis was engaged by the City to conduct a Water framework established through close collaboration with Dis-
Demand Offset Fee Study to evaluate the feasibility of imple- trict staff, Mrs. Boehling updated the capacity fees.
menting a Water Demand Offset Fee for the City. Raftelis also
evaluated the City's System Development Charges(capacity OTHER RELEVANT PROJECT EXPERIENCE
fees)to ensure new customers, or existing customers requir-
ing larger meters, pay an equitable share when connection • North County Fire Protection District, Financial Planning
to the system Mrs Boehling served as Lead Consultant for Services
both of these studies The capacity fees were last updated • Las Virgenes Municipal Water District, Cost Allocation
in 2004 and had not been adjusted to account for changes Plan and Miscellaneous Fee Study
in the system or costs associated with inflation. The fees • Los Alamos Community Services District, Water, Waste-
were updated using the equity buy-in method and considered water. and Capacity Fee Study
the value of the water assets, reserve balances, outstanding • Ramona Water Rate, Capacity Fee, and User Fee Study
debt, and current capacity/demand of the system. • Atwater Water, Wastewater, and Capacity Fee Study
• Elsinore Valley Capacity Fee Study
City of Vista/ Buena Sanitary District(CA) • Imperial County — Water & Wastewater Rate Study w/
In 2105, Raftelis was retained by the City of Vista (City) Assessments
to complete a wastewater capacity fee study for both the • Sierra Madre—Water and Wastewater Rate Study
City and Buena Sanitary District (District). Mrs. Boehling • Santa Cruz— Recycled Feasibility Study
served as the Lead Consultant on the project and developed • Inland Empire Utilities Agency —Financial Plan QC
capacity fees based on the equity buy-in approach. Several
factors were considered during the development of the fees.
including but not limited to, assets which were valued using
the replacement cost less deprecation method, the invest-
41 of 55 March 19, 2019, Item #4.3
23 RA=TELIS
INDUSTRY PUBLICATIONS
• Boehling, A , Pardiwala, S., "Chapter 13 Rates for Reuse
or Reclaimed Water", Financing and Charges for Waste-
water Systems, WEF Manual of Practice No 27, 4th
Edition, 2018.
INDUSTRY PRESENTATIONS
• Boehling, A , "How to Best Fund Your Agency's Critical
Asset Repair and Replacement Needs", presented at the
annual Utility Management Conference, Tampa. Florida.
February 9, 2017.Management Conference, Tampa, Flor-
ida, February 9. 2017
42 of 55 March 19, 2019, Item #4.3
CITY „=FOW:..
Fnr Pham
Technical Reviewer
Manager
SPECIALTIES ROLE
• Utility cost of service and rate
structure studies Will provide technical guidance and review to ensure the models and reports meet
• Financial planning studies both industry and Raftelis standards
• State revolving fund
assistance PROFILE
Ms. Phan has more than 12 years of consulting experience in financial planning and
PROFESSIONAL HISTORY cost of service studies She has worked on numerous water. wastewater. and recy-
• Raftelis: Manager cled water rate studies, cost of service studies, connection fee studies. and valuation
(2017-present). Senior studies. Her experience has primarily focused on utility agencies on the West Coast.
Consultant (2009-2016); Staff including many in California and the Pacific Northwest. Ms. Phan has an MBA and is
Consultant(2007-2009) an experienced modeler with strong analytical skills.
• Merati Economic Group:
Economics Analyst(2006-
2007)
RELEVANT PROJECT EXPERIENCE
EDUCATION City of Brentwood (CA)
• Master of Business Ms Phan served as Lead Consultant for a water and wastewater rate study for the
Administration - California City of Brentwood (City) that involved a comprehensive review of the City's financial
State University. Los Angeles plan and rate structure. The City has a total of over 17,500 water and wastewater
(2007) accounts. Water is supplied through two main sources: local groundwater, from the
• Bachelor of Science, Business City's groundwater wells, and surface water that originates from rivers within the Sierra
Administration— California mountain range and flow into the Delta. Surface water is treated at the City of Brent-
State University. Los Angeles wood Water Treatment Plant (Brentwood TP)and the Randall Bold Water Treatment
(2006) Plant(RBWTP). Wastewater services are provided by the City's Wastewater Treatment
Plant with a capacity to treat 5 0 million gallons of wastewater per day (MGD). The
study included a comprehensive review of the City's revenue requirements and allo-
cation methodology, a review of City's user classification, a cost of service analysis,
and rate design for City users. The resulting rates were fair and equitable and met the
fiscal needs of the City's utilities in the context of the City's overall policy objectives
and were designed for simplicity of administration, cost effective implementation and
ease of communication to customers. The study also included drought surcharges that
vary based on the water shortage level that the City can implement as necessary to
recover the revenue shortfall that occurs as a result of demand reduction during water
shortage situations Raftelis developed a user friendly model so that various scenarios
could be evaluated on the fly. The City appreciated the flexibility of using this model
during the course of the study. Raftelis calculated wastewater rates based on flow
and strength for differ classes of customers. Raftelis assisted with the Proposition 218
notice and the public hearing
Central Contra Costa Sanitary District (CA)
Ms Phan served as Lead Consultant for a comprehensive wastewater cost of service
study for Central Contra Costa Sanitary District(District). As part of the study, Raftelis
thoroughly examined the District's customer classification, cost structure, analyzed
wastewater flow and strength data, and evaluated alternative rate structures to develop
an equitable rate structure that meets Proposition 218 requirements and the District's
goals and objectives The Districts Board of Directors was engaged throughout the
study process via workshop presentations Several changes were recommended
to the District's rate structure to enhance equity to customers Additionally, Raftelis
43 of 55 March 19, 2019, Item #4.3
25 P:.=-_Lis
reviewed recycled water rates and developed a wholesale various alternatives for the wet weather facilities charge to
rate for sales to the local water district. Ms Phan developed ensure equity amongst customer classes. The proposed wet
the financial plan and cost of service model for the District weather facilities charge will be based on the average parcel
that allowed the District to quickly review scenarios and size for each customer class. which has a stronger cost of
evaluate alternatives in workshop settings. This tool proved service basis than the current rate structure.
invaluable when presenting the results in a graphical format
to the District Board of Directors because it enabled them to Castaic Lake Water Agency (CA)
easily see the impacts of different policy decisions on waste- Ms Phan served as lead analyst for a financial plan whole-
water rates and customer impacts in real-time. As a results, sale water rate study for the Agency. As part of the project.
the Board unanimously adopted the proposed wastewater Raftelis developed a comprehensive financial plan that eval-
rates for the next two fiscal years, effective July 1st of 2015 uated various financial alternatives to minimize financial risks
and 2016 to the Agency. The Agency received a significant portion of
its revenue stream from property tax, which it used to fund
Napa Sanitation District (CA) capital improvement projects and costs related to its Buena
Ms. Phan served as lead analyst for a recycled water rate Vista! Rosedale Rio Bravo (BV/RRB) water supply. The cur-
study for the Napa Sanitation District (District). The District rent wholesale water rate only recovered operating costs of the
was required to restrict summer discharge of its wastewater system. The Agency was concerned that property tax revenue
into the river. The District made improvements to its treatment would significantly decrease in the future,which would severely
plant to produce recycled water and then provided incentives impact its operations and require significant rate increases.
to customers to use the recycled water. The agreement with Thus. Raftelis analyzed several alternatives to gradually fund
customers was ending in two years, but the District wanted more of the BV/RRB costs from the wholesale water rate so
to enlarge the recycled water facilities and enroll new cus- that it wouldn't be as dependent on property tax revenues
tomers into the recycled water program. The District also Raftelis also reviewed and evaluated numerous alternative
wanted to review the improvements and determine the wholesale water rate structures to enhance revenue stability
impact of the new recycled water rates. Raftelis developed a and promote conjunctive water use in the Santa Clarita Valley
financial and rate model that considered the new customers among the four purveyors within the system Since the current
and revised rates and the impact of providing discounted wholesale water rate was 100%variable, one of the objectives
rates on wastewater customers. The District held a meeting of the Agency was to enhance revenue stability by incorpo-
with the recycled water users and obtained input on issues rating a fixed charge in its wholesale rate structure to ensure
of concern to them. Raftelis provided support to the Distnct recovery of a portion of its fixed costs. Raftelis presented
and evaluated the results of the conducted surveys to define four rate structure alternatives to the Board, and the Agency
the rates. implemented a fixed and variable rate structure in which the
fixed costs were recovered based on each purveyor's previous
East Bay Municipal Utility District (CA) three-year average of total water demand.
Ms Phan served as Lead Consultant for a comprehensive
wastewater cost of service study for East Bay Municipal City of Santa Barbara (CA)
Utility District (District). The last comprehensive cost of ser- Ms. Phan has been assisting the City of Santa Barbara(City)
vice study was done in 2000 for the wastewater treatment with their water and wastewater financial plans and cost of
charges. As part of the study, Raftelis thoroughly examined service rates studies involving rates for different customer
the District's cost structure. analyzed wastewater flow and classes including agriculture. outside City, tiered residential,
customers data, and evaluated alternative rate structures to commercial etc. Ms Phan has also been assisting the City
develop an equitable rate structure that meets Proposition with drought rates to address the water shortage conditions
218 requirements and the District's goals and objectives. during the drought Wastewater rates were developed for
While the proposed treatment rates retain the current rate various funding sources including grants and SRF loans.
structure,which includes a fixed monthly service and strength
charge and a variable flow charge with a cap at 10 hundred City of South Pasadena (CA)
cubic feet (hcf) per dwelling unit per month for residential Ms. Phan assisted the City in conducting a financial plan and
customers, and a fixed monthly service charge and a varia- rate study for its water and wastewater enterprises as the
ble flow charge per hcf based on customer classification for lead analyst. The City had expressed some concerns about
apartment buildings and non-residential customers, the indi- financial stability and anticipated significant capital expenses
vidual rates are realigned to reflect the cost of service. The associated with water and sewer line replacement in the
District's current rate structure also includes a fixed annual upcoming years, as well as necessary improvements to meet
charge per dwelling units(up to five dwelling units)for single- state regulations As a part of the financial plan development
and multi-family customers and per parcel for non-residential process. Raftelis evaluated the City's existing accounts and
customers for wet weather facilities. This rate structure was consumption patterns as well as its existing rate structure
developed in late 1980s. Raftelis and District staff evaluated to evaluate and project revenues These revenues were
44 of 55 March 19, 2019. Item #4.3
26 CITY OF POWAY
compared to existing and projected revenue requirements, capital projects with increased sales, cost sharing between
including operating and capital expenses as well as existing water and wastewater. phasing in rates, repayment of past
debt service obligations The results of the study included a costs incurred by water to fund the recycled water program.
financial plan dashboard which allowed the City to evaluate Ms. Phan assisted in building the rate models, preparing the
various financial plan scenarios, including the necessary scenarios and conducting economic analyses of the alter-
levels of revenue adjustments required and capital funding native scenarios.
options available in order to meet its required coverage ratios
and target reserve balances. City of Beverly Hills (CA)
The City of Beverly Hills (City) engaged Raftelis to develop
City of Ventura (CA) a rate and financial planning model that would be used to
Raftelis completed a water, wastewater, and recycled water review customer classes, evaluate alternative rate structures
cost of service and rate study for the City of Ventura (City). and to provide more detailed forecasts to assist in the prepa-
The City had not updated its rate structure in 20 years. ration of updating rates in future years.
Additionally, the City was under a cease and desist order
that required the City to carry out improvements estimated The City's water rate structure consisted of a three-tiered
at more than S55 million, and which the City wanted to start increasing block water rate structure with no differentiation
funding to mitigate impacts. The study included a comprehen- among customer types. Raftelis modeled numerous alter-
sive review of the City's revenue requirements and allocation native rate structures and reviewed customer and revenue
methodology. review of the City's user classification. usage impacts before recommending that the City modify its current
patterns, a cost of service analysis. and rate design for City three tiered rate structure to include a fourth tier that targets
users Raftelis developed long-range fi-nancial plans so that large irrigation usage The City's wastewater rates were
the water and wastewater utilities could be financially stable restructured to more equitably recover the costs of servicing
and save costs in the long run.We also assisted the City with the different customer classes to conform to EPA regulations
developing different water and wastewater rate alternatives Raftelis continues to provide updates to the City so that the
with various scenarios as well as calculating outside-city enterprise funds can continue to be financially stable. Ms
rates Ms. Phan served as the lead consultant for this project. Phan assisted in conducting the pricing objectives to deter-
responsible for building the rate models, preparing the sce- mine the objectives most important to the City's stakeholders
narios and conducting economic analyses of the alternative and developed the water and wastewater rate models to deter-
scenarios. mine the appropriate rates and rate structure for the City's
utility services.
City of Palo Alto (CA)
The City cf Palo Alto (City) engaged Raftelis to conduct a City of Anaheim (CA)
water cost of service and rate study. The study included a The City of Anaheim (City) engaged Raftelis to conduct a
comprehensive review of the City's revenue requirements water cost of service rate study. To address the financial
and allocation methodology, review of the City's user clas- objectives of the City and identify a water rate structure that
sification, usage patterns. a cost of service analysis, and is fair and equitable while sufficiently recover the costs of
rate design for City users The study also included a review providing water service, Raftelis developed a water rate and
of the peaking characteristics of different customer classes. financial planning model to calculate and forecast cost jus-
an analysis of the master-metered MFR customers, and a tified water rates appropriate to recover the operating and
review of separate charge for higher elevations customers capital costs of the wastewater enterprise over a 20-year
Raftelis conducted the study with input from the Utilities planning period
Advisory Commission made up of City residents. Ms. Phan
assisted in conducting the cost of service analysis and cus- Olivenhain Municipal Water District (CA)
tomer impacts Ms. Phan assisted the Olivenhain Municipal Water District
(District) in conducting a water financial plan study and a
City of San Diego (CA) recycled water rate study to determine the recycled water
Raftelis assisted the City of San Diego(City) in conducting a rates charged to customers. The water financial planning
water, wastewater. and recycled water rate study to evaluate model was developed to assist the District in evaluating dif-
the costs of providing utility services and the rates to charge ferent financing alternatives to minimize rate impacts and
customers. The study included a comprehensive review of ensure financial stability. The water model was effectively
the City's revenue requirements and allocation methodology. used in Board meetings and presentations to evaluate
review of the City s user classification. an analysis of cost- the impacts of various scenarios. The recycled water rate
of-service and rate design for City users The rate structure study was conducted to determine the recycled water rates
was modified to provide a more equitable sharing of costs charged to customers given that the District obtains recycled
consistent with regulatory requirements. The recycled water water from four different sources: the City of San Diego, Val-
rate study involved evaluation of various scenarios involving lecitos Water District. Rancho Santa Fe CommunityServices
45 of 55 March 19, 2019, Item #4.3
27 RAFTELIS
District, and the 4S Regional Recycled Water System. The Study
existing agreements defined the costs of different sources of • Goleta West Sanitary District (CA) - Financial Planning
recycled water to the District. To address all of those issues Model and Miscellaneous Fee Study
and concerns, Raftelis developed a recycled water financial • Jurupa Community Services District (CA) — Water and
and rate model to determine the costs of providing service Wastewater Rate Study
and the required revenue to be collected from customers. In • Napa Sanitation District (CA) — Recycled Water Rate
addition. the model is built to evaluate when the District is Study
able to take over the 4S Regional Recycled Water System. • City of North Las Vegas (NV) —Water and Wastewater
as stated in the agreement with the developer Rate Studies
• Olivenhain Municipal Water District (CA) — Recycled
Goleta West Sanitary District (CA) Water Rate Study
The Goleta West Sanitary District (District) was evaluating • City of Ontario (CA) — Water, Wastewater, and Solid
several alternatives regarding constructing their own waste- Waste Rate Studies
water treatment plant and expanding the current facility at • City of Palo Alto(CA)—Water Cost of Service Rate Study
Goleta Sanitary District. where the District has been send- • City of Redlands(CA)—Water. Wastewater and Connec-
ing their wastewater for treatment. Raftelis built a financial tion Fees Cost of Service Study
planning model for the District to find the most economically • City of San Diego (CA) —Water, Wastewater, and Recy-
effective option. Furthermore, the District engaged Raftelis cled Water Rate Study
in conducting a miscellaneous fee study to evaluate the cur- • City of Santa Barbara (CA)—Water and Wastewater Rate
rent fee structures to better represent the cost of service Study
Ms. Phan assisted in conducting economic analyses of the • City of Santa Monica (CA) —Wastewater Cost of Service
alternatives and developing the miscellaneous fee model for Study
the District • City of South Pasadena (CA) — Water and Wastewater
Rate Study
Tacoma Environmental Services (WA) • Tacoma Water Department (WA)—Water Financial Plan
Raftelis is currently conducting a comprehensive wastewa- Study
ter, surface water, and solid waste financial plan and cost of • Tacoma Environmental Services (WA) — Wastewater,
service study for Tacoma Environmental Services(Tacoma). Surface Water, and Solid Waste Study
A key objective of the project is to provide Tacoma with a
financial model that can be linked with the SAP system so
that future annual updates can be automatic. The model
also has ability to conduct sensitivity analyses on several
different issues, such as debt refinancing, varying levels of
increases in assessments costs,etc. The study also included
a long-range financial plan to ensure financial stability for all
three utilities Ms. Phan served as the lead consultant on this
project, responsible for building the rate models, preparing
presentations and conducting sensitivity analyses
OTHER RELEVANT PROJECT EXPERIENCE
• City of Anaheim (CA)—Water Cost of Service Rate Study
• City of Banning (CA)—Water, Wastewater, and Recycled
Water Rate and Connection Fees Study
• Beaumont-Cherry Valley Water District(CA)—Water Rate
Study
• City of Beverly Hills (CA) - Rate and Financial Planning
Model
• Carpinteria Sanitary District (CA) — Wastewater Rate
Study
• Castaic Lake Water Agency(CA)—Wholesale Water Rate
Study
• Clark County Water Reclamation District (NV) — Sewer
Cost of Service Study
• City of Escondido (CA) — Water and Wastewater Rate
and Fees and Connection Fees Study, and Water Budget
46 of 55 March 19, 2019• Item #4.3
23 CITY OF POWAY
.; � Lauren Demine
Staff Consultant
Consultant
SPECIALTIES ROLE
• Geophysical data analysis
• Groundwater sustainability Will work at the direction of Mr. Pardiwala and Mrs. Boehling in conducting analyses and
analysis preparing deliverables for this project.
• Excel modeling
• Database management PROFILE
• Technical report writing and Ms. Demine has a background in geology and geophysics. Her expertise includes geo-
review physical data analysis. processing and modeling. and technical report writing and review.
During her time as a geophysicist, she has worked with private firms and water districts to
PROFESSIONAL HISTORY address capital infrastructure needs, mitigate the potential of groundwater contaminates,
• Raftelis. Consultant (present), and evaluate the integrity of groundwater basins/well locations
Associate Consultant(2017-
2018) RELEVANT PROJECT EXPERIENCE
• GEOVision Geophysical
Services: Senior Staff Lake Hemet Municipal Water District (CA)
Geophysicist(2007-2017) The District commissioned Raftelis in 2017 to develop financial plans and cost of service
• GeoConcepts, Inc.: Staff studies for the water and wastewater services. The main objectives of the study were
Geologist(2005-2007) to ensure financial sufficiency, meet operation and maintenance costs, and to ensure
funding for both capital and reserves. Ms. Demine was responsible for gathering and
EDUCATION analyzing data, creating the Garner Valley enterprise financial plan, developing the cost
• Bachelors in Geology— of service model and rate model, and assisted in drafting the detailed report highlighting
California State University, the decisions made and the explaining the calculation of the final rates. As part of the
San Bernardino(2012) study, Raftelis evaluated interfund loans between enterprises with varying repayment
terms and modeled various rate structures.
Helix Water District (CA)
The Helix Water District(District)hired Raftelis to conduct a comprehensive cost of service
analysis and financial plan update. The last cost of service study was conducted back
in 1988 and needed to be updated to be in compliance with Government Code Section
54999.7(c). Rates for a five-year period were adopted in October of 2015 Additionally, the
District hired Raftelis to perform annual updates of the financial plan Ms. Demine worked
with the District and Project Manager to assist with completing the 2018 annual update.
Leucadia Wastewater District (CA)
The distnct hired Raftelis to update its financial plan for both its wastewater and recycled
water enterprises and to update the capacity fee for its wastewater utility. The main
objectives of the study were to ensure long-term financial sufficiency. meet operation and
maintenance costs, and to ensure funding for both capital and reserves over a 20-year
planning period. The Study was led by Andrea Boehling, who served as the Project
Manager for the Study. Ms. Demine assisted with data collection and model development
for both enterprises
Monterey County Water Resources Agency (CA)
Ms Demme assisted in the preparation of the 2017 new source waters study report for
Monterey County Water Resources Agency. In this report, she documented the cost
analysis for the operation and maintenance of new source waters as well as the capital
costs of the new source waters. New source waters included additional agricultural wash,
47 of 55 March 19. 2019, Item #4.3
29 ,,,,-7__15
pond water. and new treated effluent from industrial users.
Sierra Madre (CA)
Ms. Demine assisted in the preparation of the 2018 compre-
hensive water and wastewater cost of service study report
for the City of Sierra Madre. The purpose of this study was
to develop a financial plan and design rates for the City's
utilities over the next five years.
OTHER RELEVANT PROJECT EXPERIENCE
As a geophysicist for GEOVision Geophysical Services, Ms.
Demine was responsible for conducting subsurface investi-
gations She was also involved in helping to determine the
best geophysical method to meet the client's needs. Ms.
Demine was responsible for efficiently managing and orga-
nizing the data collection, analysis, and processing phases
of the geophysical investigation. She has worked on proj-
ects ranging from determining the depth and lateral extent
of groundwater tables in various basins, gathering data on
bedrock properties for the construction or repair of various
infrastructure projects (e g dams. tunnels, and pipelines),
relocating abandoned water wells, locating the depth and/or
lateral extent of contamination plumes or seawater intrusion,
and determining the best location for the placement of new
water wells.
Related Geophysical experience.
- Monterey Interlake Tunnel
- Cadiz Inc. Pipeline
- Stringfellow Acid Pits
• Hinkley, CA Chromium Cleanup
• Catalina Seawater intrusion analysis
• Oroville Dam
• Sierra Madre Dam
• San Vicente Dam
48 of 55 March 19, 2019, Item #4.3
50 CITY OF POWAY
Charles Diamond
Staff Consultant
Consultant
SPECIALTIES ROLE
• Utility Financial Analysis
• Data Collection and Analysis WII work at the direction of Mr. Pardiwala and Mrs. Boehling in conducting analyses
• Statistical Analysis and preparing deliverables for this project.
PROFESSIONAL HISTORY PROFILE
• Raftelis. Consultant (present), Mr. Diamond has a background in natural resource economics and water resources
Associate Consultant(2017- management. His expertise lies in financial modeling and data analysis. He joined
2018) Raftelis initially in 2017 as an associate consultant upon receiving a master's degree
• UC Santa Barbara from UC Santa Barbara's Bren School of Environmental Science & Management. Mr.
Department of Economics: Diamond has developed financial models and conducted analyses for water and waste-
Teaching Assistant(2017) water rate studies as well as capacity fee studies.
• UC Santa Barbara Earth
Research Institute: Graduate
Student Assistant(2015 RELEVANT PROJECT EXPERIENCE
2017)
• The Nature Conservancy City of Brentwood (CA)
Science & Stewardship The City of Brentwood engaged Raftelis to conduct a water and wastewater rate
Practitioner(2013-2015) study. In 2017, Raftelis helped the City evaluate the current water and wastewater
utilities'cost of service and adjusted rates accordingly. Recently Mr Diamond updated
EDUCATION a financial plan model and performed a cost of service analysis for the City's waste-
• Master of Environmental water utility. Mr. Diamond assisted with the update of existing rates as well as the
Science & Management development of a proposed alternative rate structure and rates.
(Water Resources
Management)— UC Santa City of Dixon (CA)
Barbara (2017) The City of Dixon engaged Raftelis in 2018 to conduct a water rate study to develop
• Bachelor of Science in updated water rates for the City's water utility. Mr. Diamond developed a ten-year
Environmental Economics & financial plan model. performed a cost of service analysis, and developed a five-year
Policy— UC Berkeley (2013) schedule of proposed water rates Mr Diamond also assisted in the preparation of
presentation materials for water rate workshops with the City Council.
La Canada Irrigation District (CA)
La Canada Irrigation District engaged Raftelis to conduct a water rate study. Since the
last rate study was performed in 2008, Raftelis helped the District evaluate the cost
of service and adjusted rates accordingly. In 2017, Mr. Diamond developed a financial
plan model for the District to support the financial plan development for fiscal years
2018 to 2027 Mr. Diamond also recently performed a cost of service analysis to assist
with the update of the District's rates.
Rancho California Water District (CA)
Rancho California Water District(District)engaged Raftelis in 2017 to conduct a water
capacity fees study. Raftelis reviewed and updated the existing methodology for calcu-
lating the District's water capacity fees, developed a water capacity fee model for use in
calculating updated capacity fees As part of the study. Mr. Diamond developed the water
capacity fee model,calculated updated water capacity fees, and drafted the study report
The District engaged Raftelis in 2018 to conduct a two-year water, recycled water.
and wastewater rate study. Raftelis developed a cost of service rate model to allocate
costs and calculate rates for fiscal years 2019 and 2020. Mr. Diamond assisted with
49 of 55 March 19, 2019, Item #4.3
31 R:.F'ELIS
rate model revisions. prepared presentation materials for
meetings with the District's Board of Directors. and drafted
the rate study report.
Santa Ana Watershed Project Authority (CA)
The Santa Ana Watershed Project Authority engaged Raft-
ers in 2017 to develop a rate model for the Inland Empire
Brine Line.which is a pipeline used to divert non-reclaimable
wastewater of high brine content from the upper Santa Ana
River Basin. Raftelis reviewed and recommended changes
to the Authority's reserve policies, developed a ten-year
financial plan for the Brine Line Enterprise Fund. performed
a multi-year cost of service analysis, and developed a rate
model for use in calculating rates assessed to the Brine
Line's dischargers Additionally, Raftelis assessed and
recommended potential methodologies to be used in the
development of long-term capacity leasing rates and rental
charges. Mr. Diamond developed the financial plan, assisted
with the cost of service analysis and rate calculation, drafted
the study report, and attended multiple meeting with the
Authority's staff.
City of Sonoma (CA)
The City of Sonoma engaged Raftelis in 2018 to conduct
a water rate study for the City's water utility. The Study
included the development of a five-year financial plan. a cost
of service analysis, and the development of proposed water
rates for fiscal years 2019-2023. Mr. Diamond processed
and analyzed account level billed water consumption data,
assisted in development of the water rate model. and drafted
the water rate study report.
50 of 55 March 19, 2019, Item #4.3
32 SCHEDULE&DEADLINES
Schedule
D di .
Raftelis will complete the scope of services within the timeframe shown in the schedule below. The proposed schedule
assumes a notice-to-proceed by March 2019, and that Raftelis will receive the needed data in a timely manner and be able
to schedule meetings as necessary. The completion date is November 2019.
llama apnl ta,y
J . July aWl+t s.P..rm.r October N..tanbec
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51 of 55 March 19. 2019, Item #4.3
33 CERTIFICATE OF INSURANCE
Client#: 1722483 RAFTEFIN
ACORD, CERTIFICATE OF LIABILITY INSURANCE DATE MWDO/YYYY;
1/2'3/2019
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND.EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED
REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER.
IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDmONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on
this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s).
PRODUCER CONTE ACT Linda Rolfe
i HAN
Cameron M Harris&Co,LLC
980-265-5804 cax
Div USI Ins ` '� Iinda.rolfe@usicom Lc NC,
6100 Fairview Road Ste 1400 Ate`
N
Charlotte,NC 28210 SURER(S)AFFORDING COVERAGE NAIC e
INSURER A:N+«rl rwaiw Ca.a Inners 20478
INSURED
Raftelis Financial Consultants,Inc. "' B c.r�rr.re.e. 35289
ra.e.w,
INSURER C:
227 West Trade Street,Ste. 1400
Charlotte, NC 28202 psuRERD:
INSURER E:
INSURER F
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS.
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCEDN� BYPAIDCLAIMS.
TYPE OF INSURANCE PAY NUMBER typNIDO/yyyy) (I fyW Y WRs
- A X CCmmanCMLGENERAL LIABILITY 607000011 01/21/2019 01/21/2020 EACH DccumtencE 11,000,000
CLJws-MADE I X OCCUR KAAAarlai a a occurrencej 1500,000
MED EXP(Ary one person) 115,000 _
PERSONAL&ADV wore s1,000,000
2
GENL AGGREGATE LIMIT APPLIES PER. GENERAL AGGREGATE s ,000,000
—PRO-
POLICY JECT LOC PRODUCTS-COMP/OP AGG 52,000,000
OTHER. 1
A AUTOMOBLE UAsury 6076000025 01/21/2019 01/21/2020 etc Mel �siNGLE LB.T 11,000,000
ANY BOOILY INJURY(Per person) $
Ap
AUTODOr4Y aCHEDIA ED BODILY INJURY(Per accident) $
X,
HIRED If NON-OWNED PROPERTYDAMAGE 1
AUTOS ONLY AUTOS ONLY
s
B UI'°RELLA Les jr.,OCCUR 6076000039 01/21/2019 01/21/2020 EACH OCCURRENCE s5,000,000
EXCESS UAS CLAMS-MADE AGGREGATE s5,000,000
DED RETENTIONS
B WORKERS COMPENSATION 6076000008 01/2112019 01/21/2020x PeR
STATUTE iR
ANO EMPLOYERS'LABILITY
ANYPROPRIETORIPARTNERIEXECUTIVEY/N 607600042-CA 01/21/2019,01/21/2020]EL EACHA;OOBNr 11,000,000
OFFlCE EMBER EXCLUOEO� n N/A
(Yatdabry in NH) EL DISEASE-EA EMPLOYEE 51,000,000
Iryw Nfaauoe under
D!'3CRIPTION OF OPEitAT1ONS below - - E.L DISEASE.POLICY LSAT :1,000,000
15 I Prof.Liability 1652071235 01/21/2019 01/21/2020 $5,000,000 Occurrence
S5,000,000Aggregate
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(ACORD 101.Additional Remarks Schedule.may be attached if mon space is rewind)
City of Lynwood.its officers,officials,employees and volunteers are hereby added as additional insured
with respect to General Liability.30 day notice of cancellation will be given except for non-payment of
premium will be 10 days.Coverage is written on primary and non-contributory basis.
CERTIFICATE HOLDER CANCELLATION
City of Lynwood, Public Works SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN
Department ACCORDANCE WITH THE POLICY PROVISIONS.
11330 Bullis Road
Lynwood.CA 90262 AUTHORIZED REPRESENTATIVE
O 1988-2015 ACORD CORPORATION.All rights reserved
ACORD 25(2016/03) 1 of 1 The ACORD name and logo are registered marks of ACORD
#S248459391M24790795 LXREZ
52 of 55 March 19, 2019, Item #4.3
34 REQUEST FOR TAXPAYER IDENTIFICATION NUMBER 8 CERTIFICATION
Q Request for Taxpayer
Form _g Give Form to the
(Rev.November2017) Identification Number and Certification requester. Do not
Department of the Treasury send to the IRS.
Internal Revenue Service ►Go to www.irs.gov/FormW9 for instructions and the latest information.
1 Name(as shown on your income tax return).Name is required on this I.ne:do not leave this line blank.
2 Business name.'disregarded entity name.if different from above
Raftelis Financial Consultants, Inc.
3 Check appropriate box for federal tax classification of the
person whose name is entered on line 1 Check only one of the 4 Exemptions(codes apply only to
5 following seven boxes. certain entities.not individuals;see
O. �,/ instructions on page 3)
o ❑ individual/sole proprietor or ❑ C Corporation 11 S Corporation ❑ Partnership ❑ Trust/estate
a single-member LLC
ao Exempt payee code(if any)
r'' ❑ Limited liability company.Enter the tax classification(C=C corporation.S=S corporation,P=Parnership)►
o
o 2 Nob:Check the appropriate box in the line above for the tax classification of the single-member owner. Do not check Exemption from FATCA reporting
LLC if the LLC is classified as a single-member LLC that is disregarded from the owner unless the owner of the LLC iscow(fan y)
a E another LLC that is not disregarded from the owner for U.S.federal tax purposes.Otherwise.a single-member LLC that
is disregarded from the owner should check the apordpnate box for the tax classification of its owner.
td U ❑ Other(see instructions)► Awes ro acca.,e manranw a.rid ne u S.)
to 5 Address(number,street,and apt.or suite no.)See instructions. Requeste-'s name and address(optional)
24640 Jefferson Avenue, Suite 207
6 City.state,and ZIP cote
Murrieta, CA 92562
7 List account number(s)here(optional)
Part I Taxpayer Identification Number(TIN)
Enter your TIN in the appropnate box.The TIN provided must match the name given on line 1 to avoid Social security number 1
backup withholding.For individuals,this is generally your social security number(SSN).However,for a
resident alien,sole proprietor,or disregarded entity,see the instructions for Part I.later.For other - -
entities,it is your employer identification number(EIN).If you do not have a number,see How to get a
TIN, later. or
Note:If the account is in more than ore name.see the instructions for line 1.Also see What Name and Employer identification number
Number To Give the Requester for guidelines on whose number to enter.
2 0 - 1 0 5 4 0 6 9
Part II Certification
Under penalties of perjury,I certify that:
1.The number shown on this form is my correct taxpayer identification number(or I am waiting for a number to be issued to me):and
2.I am not subject to backup withholding because:(a)I am exempt from backup withholding,or(b)I have not been notified by the Internal Revenue
Service(IRS)that I am subject to backup withholding as a result of a failure to report all interest or dividends,or(c)the IRS has notified me that I am
no longer subject to backup withholding:and
3. I am a U.S.citizen or other U.S.person(defined below),and
4.The FATCA code(s)entered on this form(if any)indicating that I am exempt from FATCA reporting is correct.
Certification instructions.You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because
you have failed to report all interest and dividends on your tax return.For real estate transactions,item 2 does not apply.For mortgage interest paid,
acquisition or abandonment of secured property,cancellation of debt,contributions to an individual retirement arrangement(IRA),and generally,payments
other than interest and dividends,you are not required to sign the certification,but you must provide your correct TIN.See the instructions for Part II,later.
Sign Signature of
Here u.s.person P. ./_ Date► March 1, 2019
General Instructions •Form 1099-DIV(dividends,including those from stocks or mutual
funds)
Sect,on references are to tre Internal Revenue Code unless otherwise .Form 1099-MISC(various types of income,prizes.awards,or gross
noted.
proceeds)
Future developments.For the latest information about developments •Form 1099-B(stock or mutual fund sales and certain other
related to Form W-9 and its instructions.such as legislation enacted transactions by brokers)
after they were published.go to www.rrs.gov/FormW9. •form 1099-S(proceeds from real estate transactions)
Purpose of Form •Form 1099-K(merchant card and third party network transactions)
An individual or entity(Form W-9 requester)who is required to le an •Form 1098(home mortgage interest). 1098-E(student loan interest),
information return with the IRS must obtain your correct taxpayer 1098-T(tuition)
identification number(TIN)which may be your social secunty number •Form 1099-C(canceled debt)
(SSN),individual taxpayer identification number(ITIN).adoption •Form 1099-A(acquisition or abandonment of secured property)
taxpayer identification number(ATIN),or employer identification number Use Form W-9 only if you are a U.S.person(including a resident
(EIN).to report on an information return the amount paid to you,or other alien),to provide your correct TIN.
amount reportable on an information return.Examples of information
returns include,but are not limited to,the following. If you do not return Form W-9 to the requester with a TIN,you might
•Form 1099 INT(interest earned or paid) be subject to backup withholding.See What is backup withholding.
53 of 55 later. March 19, 2019, Item #4.3
COST PROPOSAL/SCHEDULE OF COSTS CITY OF POWAY/RAFTELIS
Cost
Raftelis proposes to complete the scope of work outlined in our proposal on a time-and-materials basis as shown in
the tables below and on the following page. The tables provides a breakdown of the estimated level of effort required
for completing each task described and the hourly billing rates for the personnel scheduled to complete the project
Expenses include costs associated with travel, and a $10 per hour technology charge covering computers, networks,
telephones, postage, etc.
Hours
Web Number of Total Fees&
Tasks Meetings Meetings PM APM TR SC Admin Total Expenses
1.Project Imt atton,Project Management-and
Data Collechon 0 1 12 10 0 10 5 37 $9,615
2.Ftnanc,al Plan Development i 12 24 64 0 '04 523.590
3 Cost of Service Analysis 0 0 8 16 8 44 0 76 $17.260
4 Rate Design z 12 32 3 48 0 95 522,220
5.Rate Survey C C 1 2 0 6 0 9 $2,005
6 City Council Rate Workshops 2 '0 20 0 8 0 38 S10.785
7_Rate Study Report 2 0 4 15 4 75 0 99 520,965
8.Model Training C •4 0 16 $3,320
9.Proposition 218 Nobce and Public Hearing C C 4 4 - 2 0 '0 $2.730
Total Estimated Meetings,Hours 7 6 63 126 19 271 5 484
Hourly Billing Rate S325 $240 5240 5185 S80
Total Professional Fees S20,475 530,240 54,560 550,135 5400 5105.810
Total Fees S105,810
PM-Project Manager,Sudh,r Pard,wala.PE
APM-Ass stant Project Manager.Andrea Boehhng Total Expenses 56.680
TR-T.Cnnrcal Reweweer.Hannah Phan
SC-Staff Consuaants ---^
Total Fees 8 Expenses ;�,
Admin•Admm.strahve Staff
See next page
54 of 55 March 19, 2019. Item #4.3
Annual Update Task
and Optional Tasks
Number Hours
Web of Total Fees&
Tasks Meetings Meetings PM APM TR SC Admin Total Expenses
10.Annual Updates
Note:One annual update shown in present-
day costs and to be updated per hourly rates 2 C 24 8 4C 5 87 519,780
at time of each update
11.(Optional)Water Budget Rates 2 0 '6 32 2 40 9C 521,660
12.(Optional)Drought Rates 1 0 2 '2 2 20 36 $8,070
Total Estimated Meetings i Hours 5 2 28 68 12 100 5 213
Hourly Billing Rate $325 5240 5240 5185 580
PM-Project Manager Sudhir Pardnvaia.PE
APM-Assistant Protect Manager.Andrea Boehhng
TR-Technical Reviewer,Hannah Phan
SC-Staff Consultants
Admin-Adminisfratrve Staff
55 of 55 March 19, 2019. Item #4.3