510-6711 Page 115 of 126
13. Prepare Draft and Final Reports
Develop a draft report summarizing study objectives, findings and draft recommendations. The report will provide an administrative record supporting the proposed utility rates. The report will be written for a nontechnical audience and will clearly explain the rationale for recommendations and key alternatives when applicable. Submit a draft report for City review and feedback. Incorporate input into a revised report and ultimately provide the City with an electronic copy. The report will be provided in PDF format and can also be provided in editable Word and Excel files.
• Legal review of rate design
• Rate survey
• Analysis of billing data
• Proposed rate alternatives and impacts on customers
• Draft findings
• Draft and Final Reports and Rate Model
Rate
Design
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
TASK 2. WATER AND WASTEWATER CAPACITY FEES
1. Review Current Capacity Charges and Miscellaneous Fees Review the City’s existing water and wastewater capacity charges and miscellaneous fees as well as related policies and procedures. Work with staff to identify objectives for new or modified capacity charges and miscellaneous fees.
2. Conduct Survey of Regional Capacity Charges
Review and summarize capacity charges of other regional and comparable agencies. Summarize results in easily understandable tables and/or charts.
3. Evaluate Alternative Capacity Charge Methodologies
Identify and evaluate alternative methods for calculating capacity charges. Discuss advantages and disadvantages with the project team and determine a recommended approach. BWA often recommends that capacity charges recover costs for both existing and future facilities that benefit new development.
4. Determine Current Value and Capacity of Utility Assets Calculate the current value of the water and wastewater assets. The current value of facilities can be calculated by adjusting the original or depreciated value of each facility or asset into current dollars using the Engineering News-Record Construction Cost Index, a widely-used measure of construction cost inflation
5. Allocate Capital Program Costs to Current and Future Users Equitably allocate capital improvement costs to existing and future users based on input from City staff and/or its consulting engineers. Some projects may entirely benefit one group while others will benefit both existing customers and provide new capacity for growth.
6. Develop Preliminary Capacity Charge and Miscellaneous Fee Recommendations Based on appropriate and technically sound methodology, recommend revisions to the current water and wastewater capacity charges and miscellaneous fees based on the data developed above. For water capacity fees look at basing the fees on water meter size, estimated water demand or other appropriate method. Review fee for compliance with Government Code Section 66000 et. seq. (AB1600).
7. Recommend a Method for Future Capacity Charge Updates Recommend a method to annually or periodically adjust capacity charges and miscellaneous charges so they keep aligned with future costs. For example, capacity charges can be adjusted annually based on the change in the Engineering News-Record’s Construction Cost Index, a widely used measure of construction cost inflation.
14. Prepare Draft and Final Reports
Develop a draft report summarizing study objectives, findings and draft recommendations. The report will provide an administrative record supporting the proposed capacity charges. The report will be written for a non-technical audience and will clearly explain the rationale for recommendations and key alternatives when applicable. Submit a draft report for City review and feedback. Incorporate input into a revised report and ultimately provide the City with electronic copies. The report will be provided in PDF format and can also be provided in editable Word and Excel files.
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
TASK 3. CITYWIDE INDIRECT COST ALLOCATION
1. Investigation and Data Collection
Collaborate with the Finance Department to review current indirect costs. The objectives of investigation and data collection are to develop a complete understanding of City funds and their finances, and to reach an agreement on basic assumptions to be used in evaluating cost allocation methods and alternatives.
Investigation will include, but is not limited to, the following areas:
• Current and historical documents including current and projected budgets, financial statements, and other financial studies or internal finance projections • Capital improvement plans
• Current fund balances
• Historical and projected allocation needs
• Long-term infrastructure replacement needs
• Formal and informal financial policies
• Agreements with other agencies and/or organizations
• Conditions leading up to this project
2. Review Current Cost Allocation Plan Procedures
Review current cost allocation methodology by which the City allocates indirect expenses. Review current cost allocation factors that serve as the basis for achieving and equitable distribution of costs.
3. Evaluate Alternative Cost Allocation Methodologies
Collaborate with the Finance Department to determine reasonable indirect cost allocation factors. A fully detailed investigation of the allocation of indirect costs typically requires a level of effort disproportionate with the benefit gained. The objective of this phase is to review existing practices and cost allocations and determine if significant changes should be considered for updated methodology. During this phase, BWA will work closely with the project team to evaluate alternative scenarios and assumptions. Allocation bases identified will ultimately serve as the basis for the fair distribution of costs.
4. Develop Cost Allocation Models
Develop user-friendly cost allocation models to be used by City staff to update projections and change assumptions. BWA has developed numerous financial models for municipalities. We have found that keeping a model as straightforward as possible, without unnecessary complexity, can increase the model’s usability and improve effectiveness as an in-house tool.
5. Prepare Draft & Final Reports
Prepare a draft report to summarize findings and recommend an appropriate method to allocate costs that demonstrates a fair distribution of costs that can be seamlessly updated to easily reflect changes for future needs. The reports will be written for a non-technical audience and will clearly explain the rationale for recommendations and key alternatives when applicable.
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
TASK 4: MEETINGS, PRESENTATIONS & PUBLIC OUTREACH
1. Meetings
Meet with the project team to present findings, discuss alternatives and their impacts, gain ongoing input, and develop and hone recommendations for all studies. Meet with and present findings to City Council for all studies. Our proposal includes a total of three (3) trips to the City. The final schedule and number of meetings will be determined with input from the project team. Our preliminary in-person meetings schedule includes: one (1) community meeting, one (1) presentation to City Council and the public, and the one (1) public hearing conducted in accordance with the procedures outlined in Proposition 218. Inperson meetings are at the direction of the City (e.g., a community meeting may be substituted for a community/City Council workshop). BWA will participate in virtual conference calls as needed. Additional in-person meetings/workshops with committees and citizens groups, may also be included if approved by the City. Meetings can also be combined, e.g. community meetings can be scheduled on the same day as Council meetings, to reduce costs.
Presentations will provide a brief background and study objectives, make a clear case why rate and fee increases are needed, describe the rate structure (and potentially key alternatives) approved by the project team, show rate and fee impacts on various customer profiles, present findings of the rate and fee surveys, and discuss related financial and policy recommendations. We have substantial experience in presenting our findings to both technical and governing boards and to audiences without a background in utility rates or finances.
2. Public Education and Consensus-Building
Rate and fee adjustments are often controversial. BWA has extensive experience developing clear presentations that facilitate public understanding of the need for rate and fee increases. We understand the importance of building consensus and public acceptance for our recommendations and can assist staff in developing public education materials. Holding community workshops or open houses are effective tools to help the community understand the needs of the agency. BWA is always willing to support and attend additional community outreach meetings on a time and expense basis.
3. Compliance with Proposition 218
Proposition 218 establishes requirements for adopting or increasing property-related fees and charges.
In July 2006, the California Supreme Court ruled that water and wastewater rates are subject to Proposition 218 (Articles XIIIC and XIIID of the State constitution). Proposition 218 requires that the City:
1) mail notification of proposed rate increases and the date, time, and place of public hearing to all affected property owners; 2) hold a public hearing not less than 45 days after the notices are mailed; and 3) subject the rate increases to majority protest; if more than 50% of property owners submit written protests, the proposed rate increases cannot be adopted.
BWA remains available to assist staff with drafting the Proposition 218 rate notice. BWA recommends the notice go beyond the minimum legal requirements and provide a clear and concise explanation of the reasons for any rate adjustments. We have found that ratepayers are generally much more accepting of rate increases when they understand why they are being implemented. • Proposition 218 public hearing notice
• Rate Workshops with Council / Community
• Proposition 218 Public Hearing
Outreach &
Adoption
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
510-671-10
Section 4: Schedule
Provided below is a draft timeframe for completion of the Project. BWA will work with the City to develop a final schedule designed to meet the City’s objectives. BWA has the capacity to complete the projected on a compressed timeline if necessary.
Note: Individual project milestones will be established based on consultation with the project team.
PROJECT TASK
Task 1. Water and Sewer Rate Study
Task 2. Water and Sewer Capacity Charge Study
Task 3. Citywide Indirect Cost Allocation Plan
Task 4. Public Workshops / Council Meetings
Task 4. Prop. 218 Notice Period & Public Hearing
FEB/MAR APR/MAY JUN/JUL AUG/SEP OCT/NOV
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
Section 5: Cost Proposal
Provided below is a draft breakdown of our budget by task. Bartle Wells Associates has the capacity to perform each task individually or concurrently at the direction of the City. Individual not-to-exceed amounts by task are inclusive of costs related to in-person meetings. We are available to work with the City to refine the scope and budget to meet the City’s objectives and expectations.
Erik Helgeson Juana Espinoza Total Project
Principal Analyst Hours Cost
$285 $160
Task 1. Water & Wastewater Rate Studies 120 160 280 $59,800
1. Project Team Orientation / Kickoff Meeting
2. Investigation & Data Collection
3. Develop Forecasts and Projections
4. Evaluate Financing Alternatives for Capital Improvements
5. Establish Prudent Financial Planning Fund Reserve Targets
6. Develop 10-Year Financial Projections & Evaluate Scenarios
7. Evaluate Financial Scenarios & Alternatives
8. Cost of Service Analysis
9. Rate Design Review
10. Rate Survey
11. Progress Meetings
12. Prepare Draft & Final Reports
Task 2. Water & Wastewater Capacity Fee Studies 40 60 100 $21,000
1. Review Current Capacity Fees & Procedures
2. Capacity Fee Survey
3. Evaluate Alternative Fee Methodologies
4. Determine Value & Capacity of Existing Assets
5. Allocate Capital Program Costs to Current & Future Users
6. Develop Preliminary & Final Fee Recommendations
7. Progress Meetings
8. Prepare Draft & Final Reports
Task 3. Citywide Indirect Cost Allocation 40 80 120 $24,200
1. Investigation & Data Collection
2. Review Current Cost Allocation Plan Procedures
3. Evaluate Alternative Cost Allocation Methodologies
4. Develop Preliminary & Final Cost Allocation Recommendations
5. Progress Meetings
6. Prepare Draft & Final Reports
Task 4. Presentations, Meetings, & Prop 218 35 40 75 $16,375
1. Up to 3 in-person meetings
2. Proposition 218 Rate Notice
Note: All meetings reflect costs for BWA attendance in - person.
TOTAL ESTIMATED HOURS 235 340 575 $121,375
ESTIMATED EXPENSES $4,000
TOTAL PROJECT BUDGET $125,375
PROJECT TASK
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
Type text here
AVAILABILITY & FEES
1. Bartle Wells Associates is prepared to begin work upon authorization to proceed.
2. During the project development period, Bartle Wells Associates will be available at all reasonable times and on reasonable notice for meetings and for consultation with staff, attorneys, consulting engineers, and others as necessary.
3. Bartle Wells Associates will perform all work related to the assignment. Erik Helgeson, a firm principal and vice president, will be assigned as project manager on this assignment. He will serve as the lead contact person for BWA and will be involved with the project on a day-to-day basis. Erik will be assisted by Juana Espinoza, a project consultant. This project team may be assisted by other BWA analysts as needed.
4. The fees for services outlined in this proposal contain individual not-to-exceed amounts by task and for direct expenses. Total project costs not to exceed $125,375. The fee is based on the following assumptions:
a. All necessary information will be provided by the City in a timely manner. b. Development of a draft, final draft, and final versions of tables, presentations, and reports. Time and expenses involved in revising tables and assumptions may constitute additional services if not achievable within the budget.
c. Up to three (3) in-person trips to the City for meetings and/or presentations. Additional meetings or presentations may constitute additional services if not achievable within the budget.
5. Progress payments and direct expenses are payable monthly on a time and materials basis as the work proceeds as provided in our Billing Rate Schedule 2025, which will remain in effect through the duration of this assignment.
6. Bartle Wells Associates will maintain in force, during the full term of the assignment, insurance as provided in the Certificate of Insurance attached.
7. If the project is terminated for any reason, we are to be reimbursed for professional services and direct expenses incurred up to the time we receive notification of such termination.
8. This proposal may be withdrawn or amended if not accepted within 90 days of its date.
9. We will not require a formal contract of employment and will consider a letter or e-mail from an appropriate official as sufficient authority to proceed.
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
a
BARTLE WELLS ASSOCIATES
BILLING RATE SCHEDULE 2025
Rates Effective 1/1/2025
Professional Services
Financial Analyst I................................................................................................. $130 per hour Financial Analyst II................................................................................................ $150 per hour Associate Consultant............................................................................................ $170 per hour Consultant ........................................................................................................... $195 per hour Senior Consultant................................................................................................. $220 per hour Project Manager/Technical Expert....................................................................... $250 per hour Principal Consultant ............................................................................................ $285 per hour The hourly rates for professional services include all overhead and indirect expenses. Bartle Wells Associates does not charge for administrative support services. Expert witness, legal testimony, or other special limited assignments will be billed at one and one-half times the consultant’s hourly rate.
The above rates will remain in effect through December 31, 2025, at which point they will be subject to adjustment.
Direct Expenses
Subconsultants will be billed at cost plus ten percent. Other reimbursable direct expenses incurred on behalf of the agency will be billed at cost plus ten percent. These reimbursable costs include, but are not limited to:
Travel, meals, lodging Automobile mileage
Printing and photocopying Messenger services and mailing costs Special statistical analysis Graphic design and photography Outside computer services Special legal services
Bond ratings Legal advertisements
Insurance
Bartle Wells Associates maintains insurance in the amounts and coverage as provided in the attached schedule of insurance. Additional or special insurance, licensing, or permit requirements beyond what is shown on the schedule of insurance are billed in addition to the contract amount.
Payment
Fees are typically billed monthly or bi-monthly for the preceding work period and are due and payable within 30 days of the date of the invoice. A late charge of 1.0 percent per month may be applied to balances unpaid after 60 days.
Arcata Agreement with Bartle Wells Associates - 2025 W/WW Rate Study, Etc. (PSA Template 11.19.2024)
STAFF REPORT – CITY COUNCIL MEETING
TO: Honorable Mayor and City Council Members
FROM: Merritt Perry, City Manager
PREPARER: Rhiannon Lewis-Stephenson, Executive Assistant/Deputy City Clerk DATE: March 5, 2025
TITLE: Consider Sponsorship of Kinetic Universe’s Kinetic Grand Championship Race Planned on the Arcata Plaza on May 24, 2025.
RECOMMENDATION:
It is recommended that the Council approve a sponsorship for the Kinetic Universe’s Kinetic Grand Championship Race in an amount equivalent to the Plaza event fees of $1,300 for the sculpture race to be held on the Arcata Plaza on May 24, 2025.
INTRODUCTION:
Since 1969, the kinetic race has been a North Coast tradition. It includes a 3-day marathon spanning over 40 miles of Humboldt County California’s towns, beaches, trails, and rivers every Memorial Day Weekend. The Kinetic Grand Championship is Humboldt’s largest & oldest free to watch art event attracting attention from local and national media as well as thousands of fans from Humboldt and around the world. This is one of the signature events that puts the City of Arcata on the map and attracts visitors from around the world, as well as provide a free festival for local residents. Its impacts to the local economy and culture are significant.
Arcata hosts one of the most prestigious portions of the race, which includes judging and pageantry that provides opportunities a festive accessible location for the public to view the sculpture racers up close as they circle the plaza in the lead-up to the race. The Plaza takes on almost a carnival type feel during the event and provides an opportunity for food vendors and local restaurants to get in on the day’s activities. There is no charge to the public for attendance at this event.
Representatives of the Kinetic Universe contacted the City and shared that the race has been financially struggling in the post-COVID era and indicated that rising costs of services and goods, and the reduction of donor support have left the race in financial danger. Kinetic Universe is asking for the City’s support to waive, or provide, the event fees for the use of the Plaza for the event.
BACKGROUND/DISCUSSION:
The rates charged for the use of the Plaza for a special event are intended to cover staff costs as well as maintenance, barricade fees, utilities, traffic control plan, equipment servicing and equipment and permanent restrooms.
The cost to use the Plaza for the Kinetic Grand Championship event is approximately $1,300 for use of the area from 7 a.m. May 24 through 2 p.m. that day.
A $500 deposit will be required from the Kinetic Universe to ensure clarity and responsibility for clean-up.
Staff are recommending that the Council provide support for the race in an amount equivalent to the anticipated use fees for the event, in the amount of approximately $1,300.
BUDGET/FISCAL IMPACT:
Although the City Council has not identified specific events to receive support from the City, the City Council did express its desire to support events in the City and set aside $25,000 for that purpose. Although there were no specific events identified in the budget at that time, festivals, and festivities that are open to the public at no charge, attract visitors from near and far, and have a long history of success, such as the Kinetic Grand Championship race, seem to be the type of event the Council should consider support with the budget set aside for that purpose.
If approved, the funds for the event would come from 101-10-01-52104. No funds from this source have been used this year. Approximately $23,700 would remain for the support of other events or community projects over the remainder of the fiscal year.
ATTACHMENTS:
A. Kinetic Grand Championship Letter to Council dated January 8, 2025
Arcata City Council
736 F Street
Arcata, CA 95521
Dear City Council Members,
RECEIVED
CITY OF I\RCAT/-\
CITY MANAGER'S OFFICE
Kinetic Universe
PO Box 425
Eureka, CA 95501
Wednesday, January 8th, 2025
Kinetic Universe would like to request that the Arcata City Council waive the major event fees for the use of the Arcata Plaza on Saturday, May 24th, 2025.
Each Memorial Day weekend, the Kinetic Grand Championship has carried on the tradition of Hobart Brown's original Kinetic Sculpture Race through 50 miles of land, sand and water. Before kicking off at the noon whistle, teams parade their sculptures around the Arcata Plaza, allowing spectators to get up close and personal with the racers and their machines.
Like many nonprofits, Kinetic Universe has been financially struggling in the post-Covid era. The rising cost of services and goods, and the reduction in donor support have left the race in financial danger. Any reduction in cost that we can secure will help ensure the continued organization of the race.
On behalf of Kinetic Universe, the organizing body of the Kinetic Grand Championship, I would like to respectfully request that the Arcata City Council waive the major event fees for the use of the Arcata Plaza on Saturday, May 24th, 2025. We would be happy to address any questions the Eureka City Council may have on this matter. Thank you for your time and consideration. k ()-~
Board Member
Race Director
Kinetic Universe
[email protected]