APPROVE PROFESSIONAL SERVICES AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. FOR FINANCIAL SERVICES FOR COST OF SERVICE AND WATER
RATE STUDY
JUNE 28, 2022
PAGE 2
Project understanding and approach
15%
Experience with similar projects
20%
Qualifications of project team members
15%
Proposed schedule
10%
Overall quality and completeness of proposal
10%
Local sensitivity
5%
Reputation
5%
Qualifications of subconsultants/subcontractors
10%
Cost-effectiveness
10%
Total
100%
The results of the proposal evaluations were as follows:
The results of the proposal evaluations found Raftelis as the highest ranked and most-qualifieii consultant.
Raftelis demonstrated the most comprehensive level of experience and qualifications of project team members, demonstrated a clear understanding of the project goals and objectives, and proposed the most complete study approach.
11111! 1 1111! 11 11511 1 111 11 1 1 111 1
EMEIM• •�
Project management and data collection
• Financial plan model
• Cost of service analysis
• Water rate design and customer bill impacts
• Drought rate analysis
• Surrounding agency rate survey
• Council and public outreach/presentations
• Draft and final reports
• Proposition 218 public notification and public hearing
APPROVE PROFESSIONAL SERVICES AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. FOR FINANCIAL SERVICES FOR COST OF SERVICE AND WATER
RATE STUDY
JUNE 28, 2022
PAGE 3
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The total estimated cost for the study is $65,574. Sufficient funding is currently available in the Fiscal Year 2022-2023 Water Fund Operating Budget as shown in the table below. . .........
Acc ooAmount unt N. Fu���
51-4-3550-0700 Water Fund - Water Pro ram S1111111111111.11111-pOrt 0 erati u nt Total $350,000
ATTACHMENTS
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CITY OF fill 'i%E'F
PROFESSIONAL SERVICES AGREEMENT
WITH RAFTELIS FINANCIAL CONSULTANTS, INC. (DBA RAFTELIS)
FOR FINANCIAL SERVICES
1. PARTIES AND DATE.
This Agreement is made and entered into this 28th day of June, 2022 by and between the City of Downey, a California municipal corporation and charter city with its principal place of business at 11111 Brookshire Avenue, Downey California 90241 ("City") and Raftelis Financial Consultants, Inc. (DIBA Raftelis), a California [corporation], with its principal place of business at 445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 ("Consultant"). City and Consultant are sometimes individually referred to as "Party" and collectively as "Parties."
Consultant desires to perform and assume responsibility for the provision of certain professional financial services required by City on the terms and conditions set forth in this Agreement. Consultant represents that it has demonstrated competence and experience in providing financial services to public clients, is licensed in the State of California, and is familiar with the plans of City.
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City desires to engage Consultant to render such services for the Cost of Service and Water Rate Study project ("Project") as set forth in this Agreement.
3.1 Scope of Services and Term.
GeneralSoopgofSerVices. Consultant promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional financial services necessary for t Project ("Services"). The Services are more particularly described in Exhibit "A" Consultant' Proposal for- Financial Services for Cost of Service and Water Rate Study, dated March 31, 2022 attached hereto and incorporated herein by reference. All Services shall be subject to and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. I
3.1.2 Term. The term of this Agreement shall be effective on the date of issuance of the City's written notice to proceed and shall continue in effect until completion the services identified herein, unless earlier terminated as provided herein. Consultant shal complete the Services within the term of this Agreement, and shall meet any other I
established schedules and deadlines. The term of this Agreement may be extended by written amendment to this Agreement signed by the City Manager and the Consultant, up terms and conditions agreed to by the City and Consultant. I E111911111111=1•T •I'll 11:1 1 F• 1; 11111 1111111� I-OTOMT-711 mm I Contrd and Payment of Subordinates-, lnd6pendent�Contra #. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basi and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shal pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, b I! not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. "VAFW
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for enrollment in CalPERS as an employee of City, Consultant shall indemnify, defend, and hold harmless CITY for the payment of any employee and/or employer contributions for CaIPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform ihe Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of 2nticipated performance to meet the Schedule of Services. The parties acknowledge that the Schedule of Services may be amended by mutual agreement due to changes in circumstances, including changes in the performance schedules of other third parties performing work for the City on the Project, which affect the timing of Consultant's performance of the Services.
3.2.3 Conformance to AppliobleReguirements. All work prepared by Consultant shall be subject to the approval of City.
3.2.8 Standard of Care, P6ff&Mpnce of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional c. • necessary to performConsultant '. . I employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultantrepresents • • `' is subcontractors permits, qualifications and approvals of ` that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided • • • provisions of Agreement, i perform,
its own costand expense and without reimbursementfrom ` to correct errorsomissions are caused by • I l ' to comply
who is determined by the City to be uncooperative, incompetent, a threat to the adequate timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner consistent with the standard of care set forth herein, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. I
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all applicable local, state and federal laws, rules and regulations in force at the time the Services are performed by Consultant and in any manner affecting the performance of the Project or the Services, including all applicable Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the applicable indemnification provisions of this Agreement, rules or regulations. Consultant's violation of such laws, rules and regulations shall also constitute a material breach of this Agreement.
3.2.10 Insurance.
3.2.10.1 Time for COflIpliah0e. Consultant shall not commence the Services or the Project under this Agreement until it has provided evidence satisfactory the City that it has secured all insurance required under this section. In addition, Consultan shall not allow any subcontractor to commence work on any subcontract until it has provide I
evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. The City reserves the right to modify these requirements, including limit based on the nature of the risk, prior experience with insurer, coverage or other special circumstances.
3.2.10.2 Minimum Rggu,irements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement, the Services or the Project by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage. - (A) Minimum Scope of Insurance. (1) Commercial General
Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis including products and completed operations, property damage, bodily injury and personal and advertising injury; (2) Automobile Liability. Insurance Services Office Form Number CA 0001 covering Code 1 (any auto) or if Consultant owns no autos, Code 8 (hired) 4 and 9 (non -owned); and (3) Workers' Compensation: Workers' Compensation insurance as required by the State of California with Statutory Limits; and (4) Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) Commercial General Liability (CGL).- No less than $2,000,000 per occurrence for products and completed operations, bodily injury, property damage and personal and advertising injury. If Commercial General Liability Insurance or other form with general aggregate limit applies, either the general aggregate limit shall apply separately to this Agreement/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability.- No less than $2,000,000 per accident for bodily injury and property damage; and (3) Workers' Compensation.- Workers' Compensation limits as required by the Labor Code of the State of California with Statutory Limits; (4) Employer's Liability: Employer's Liability limits of no less than $2,000,000 per accident for bodily injury or disease. Employer's Liability coverage may be waived by the City if City receives written verification that Consultant has no employees.
If the Consultant maintains broader coverage and/or higher limits than the minimum shown in this subdivision 3.2.10.2, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
3.2.10.3 Professional LiabilityErrors& Omissions). Consultant shall procure and maintain, and require its sub -consultants to procure and maintain, for a period of five (5) years following completion of the Services or the Project, errors and omissions liability insurance appropriate to its profession. Such insurance shall be in an amount not less than $2,000,000 per occurrence or claim and $2,000,000 in the aggregate, and shall be endorsed to include contractual liability. If the Consultant maintains broader coverage and/or higher limits than the minimum shown in this subdivision 3.2.10.3, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
3.2.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Additional insured Status. The Commercial General
Liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to liability arising from the work, Services, Project or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work, Services. Project or operations; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if
standexcess, shall in an unbrokenof . • of i.scheduled
underlying coverage. Commercial General Liability insurance coverage may be provided in the form • S an endorsementto theConsultant's as ISO Form CG 1 10 11 s or both CG 21 10, CG 20 26, CG 20 33 or ! i and CG 20 37 forms revisionslater `d
(B) Mjver of Subrogation, Consultant hereby grants to City a waiver of right• subrogation which any insurerof .• Consultant may acquire.•. the City by of payment any loss•' • insurance policies set forth herein. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of • i•. • but provision applies`•. • of or •
received a waiver of '.i if. •n endorsement fromthe insurer.
CovetqggLs. Each insurance policy required by
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except with written notice by certified mail, return receipt requested to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Prinnaa�Cbverage� For any claims related to this Agreement, theConsultant's- coverage shall be primary insurance and primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the City, its directors, officials, officers, employees, • - is volunteers.Any . - •.:
-• • directors officials, officers ernRloges,apents and volunteers W
3.2.10.6 Separation of In§grgg!g1 No Special Limitations. All insurance required by •' •. • separation of • provisions.
In addition, such insurance shall not contain any special limitations on the scope of protecti ,2fforded to the City, its directors officials, officers, employees, agents and volunteers.
Peductibles •Selfrinsurance Reteptions. Any
named,ieductibles or self -insured retentions must be declared to and approved by the City. City m require Consultant to provide proof of ability to pay losses and related investigations, claim administration and defense expenses and costs within the retention. The policy language shall provide or be endorsed to provide that the self -insured retention may be satisfied by 6ther the insured or
rating3.2.10.8 Acceptatility of Insurers. Insurance is to be placed with insurers with a current A.M. Best's noauthorized to do business California,• satisfactory to the
3.2.10.9 Verificatioogeonsultant shall furnish City with original certificates of insurance, including all required amendatory endorsements (or copies of the applicable policy language effective coverage required by this provision) and a copy of the Declarations and Endorsement Page of the Commercial General Liability policy listing all policy endorsements to the City before the commencement of work under this Agreement.
However, failure to obtain the required documents prior to the commencement of work under this Agreement shall not waive the Consultant's obligation to provide them to the City. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, at any time.
3.2.10.10 Claims -Made Policies. If any of the policies provide coverage on a claims -made basis:
(A) The retroactive date must be shown and must be before the date of this Agreement or the date work commences under this Agreement, whichever is earliest; (B) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Services provided under this Agreement;
(C) If coverage is canceled, non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the effective date of this Agreement or the date work commences under this Agreement, whichever is earliest, the Consultant must purchase extended reporting coverage for a minimum of five (5) years after completion of the Services under this Agreement.
3.2.11 Safetv. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to- (A) adequate life protection and life-saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are the proper inspection and maintenance of all safety measures.
3.3.1 Corngehsation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "A" attached hereto and incorporated herein by reference. The total Sav&rft--ri1W 11ft-VZ
($65,574.00) without written approval of the City. Extra Work may be authorized, as described below, and if authorized, said Extra Work will be compensated at the rates and manner set forth in Exhibit "A" attached to this Agreement.
3.3.3 Reimbursement for Expens2s. Consultant shall not be reimbursed for any expenses unless authorized in writing by City,
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consul t perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the •.. did '• reasonably •. would be necessary at the execution • this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City Manager.
3.4.1 Maintenance and Intpoefion. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such AW W1 r -W rsuant to this A reement. Consultant shall allow Ifelfirts OIQ 910.10 Ito] MOW-1:9961-
3.5.1.1 Grounds for •.' City may, by written notice to
�&KVAO.'21 #�-VN �121-1 2.71�1 �'-
for the City's convenience and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date • such termination. • may •: terminate this Agreement for cause upon giving the City not less than seven (7) calendar days'written notice.
Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. The City shall within fifteen (15) calendar days following termination pay t Consultant for all services adequately rendered and all reimbursable costs incurred by Consultant up to the date of termination, In accordance with the payment provisions of thi Agreement. I
The following reasons shall constitute "cause" for which either party may terminate this Agreement as provided herein:
Substantial failure by the other party to perform in accordance with the terms of this Agreement and through no fault of the terminating party; • Assignment of this Agreement or transfer of the Project by either party to any other entity without the prior written consent of the other party-, • Suspension of the Project or the Consultant's Services by the City for more than ninety (90) calendar days, consecutive or in the aggregate, without good cause; • Material changes in the conditions under which this Agreement was entered into, the Scope of Services or the nature of the Project, and the failure of the parties to reach agreement on the compensation and schedule adjustments necessitated by such changes.
3.5.1.2 ' Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such Documents and Data and other information within fifteen (15) days of the City's request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices, All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose- Raftelis Financial Consultants, Inc. (DBA RafteliP.,
445 S. Figueroa Street, Suite 1925
Los Angeles, CA, 90071
Phone: (213) 262-9308
Attn: Steve Gagnon, PE
Senior Manager I
M
Fax: (562) 904-7296
Attn: Delfino Consunji, P.E.
Director of Public Works/City Engineer
UUMEEMEMESM
City of Downey
City Attorney's Office
11111 Brookshire Avenue
Downey, California 90241
Such notice shall be deemed made when personally delivered or when mailed, forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3.1 Documents & Data, Licensing of Intellectual PLopofjy. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.
3.5.3.2 'Confidentialily. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be Csclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential.
Consultant shall not use City's name or insignia, photographs of the Project, or any publicity [El
pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.5.4 Cooperation; Naber 6gis. The Parties shall fully cooperate with on(�� another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Aftrney's Epp§. In the event of any litigation, whether in a court of law, administrative hearing, arbitration, or otherwise, arising from or related to this Agreement of the services provided under this Agreement, the prevailing party shall be entitled to recover Trom the non -prevailing party all reasonable costs incurred, including staff time, court costs, attorneys' fees and all other related expenses in such litigation.
3.5.6.2 Design ProfgMJgpg!§. The provisions of this subdivision
3.5.6.2 shall apply only in the event that Consultant is a "design professional" within the 00 3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be the courts in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.5.10 Citv's Riaht to Emolov tither Consultants. City reserves right to employ other consultants in connection with this Project.
3.5.11 Successors and Ass iqns. This Agreement shall be binding on the successors and assigns of the parties.
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3.5.19 Egual OpportunityEmploymen . Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of any City Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.5.20 La�gr Certification, By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.5.21 AuthoribLIOEnterAgreernent. Consultant has all requisite power and authority to conduct Tts business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.5.22 Cqunfeejppgreement may be executed in counterparts, each of \YW.ich shall constitute one and the same instrument.
In the event of any conflict, inconsistency, or incongruity between any provision of this Agreement, any of its exhibits, attachments, purchase order, or notice to proceed, the provisions of this Agreement will govern and control.
3.6.1 Prior Approval Reguired. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements set forth in this Agreement. Consultant shall ensure that City is an additional insured as required in Section 3.2.10.4. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
CITY OF DOWNEY, RAFTELIS FINANCIAL CONSULTANTS,
a California municipal corporation INC. (DBA RAFTELIS), and charter city a California Corporation
By: By:
Blanca Pacheco, Mayor Gagnon, PE
Its: Senior Manager
Attest., Attest:
RVAM.W-1 MIRDIRRINLYAW
Approved as to Form
Lauren Langer, tit Attorney
M3=A
03030M���
IR
EXHIBIT "A"
RAFTELIS
C0 9V -Mr-4b,
iV ot vownel
Cost of Service and Water Rate Study
9917
Diversity and inclusion
are an integral part of
Raftelis'care values.
We are committed to doing our part to fight
prejudice, racism, and discrimination by
becoming more informed, disengaging with
business partners that do not share this
commitment, and encouraging our employees
to use their skills to work toward a more just
society that has no barriers to opportunity.
REGISTERED
MUNICIPAL
ADVISOR
Raftelis is registered with
the U.S. Securities and
Exchange Commission
(SEC) and the Municipal
Securities Rulemaking
Board (MS") as a
Municipal Advisor.
Registration as a Municipal Advisor is a
requirement under the Dodd -Frank Wall
Street Reform and Consumer Protection Act.
All firms that provide financial forecasts that
include assumptions about the size, timing,
and terms for possible future debt issues, as
well as debt issuance support services for
specific proposed bond issues, including
bond feasibility studies and coverage
forecasts, must be registered with the SEC
and MSRB to legally provide financial
opinions and advice. Raftelis' registration as
a Municipal Advisor means our clients can be
confident that Raftelis is fully qualified and
capable of providing financial advice related
to all aspects of financial planning in
compliance with the applicable regulations of
the SEC and the MSRB.
r m 100
.rable of
C,
M
10 Appendix: Resumes
PUM =I—
MR1303M
March 31, 2022 RAFTELIS
Mr. Dan Mueller, Deputy Director of Public Works/Utilities Manager City of Downey — Public Works Department
11111 Brookshire Avenue, Downey, CA 90241
Raftelis is excited to submit this proposal for the cost of service and water rate study for the City of Downey (City).
Financial planning and cost -based rates are core focus areas for our firm. We have conducted thousands of rate studies across the U.S. and hundreds in California. Recent engAggments in pour area include projiects for the Cities of Lakewood, Manhattan Beach, El Monte, Industry Public Utilities, Pomona, Santa Fe Springs, Yorba Linda, South Pasadena, and L?- Puente Valley County Water District. A more detailed list of prior clients and references are detailed in our proposal.
Itaftelis was founded in 1993 and has grown to more than 130 consultants nationwide. We have 13 west coast -based — While financial Lojanning and rate setting are keg services of Raftelis what sets us apart L 'rom most firms is that we also offer stakeholder communications, organizational assessment, executive recruitment, — strategic planning, and technology support for local governments and utilities. 1, Steve Gagnon, PE (AZ), will serve as the Project Manager and be responsible for deliverables and schedule. I have been conducting wastewater, water, and recycled water studies for about 14 years out of my 24 total years as a consultant. I am registered as an environmental engineer in Arizona, am a Municipal Advisor Representative with the U.S. Securities and Exchange Commission (SEC), and am the chair of the Califomia-Nevada American Water Works Association (AWWA) Financial Management Committee. I lead our staff of nine consultants in our Los Angeles Office. Sudhir Pardiwala, PE 1 6 will serve as the Proiect Director i roviding- oversi i t and direction. He has over 40 1 ears of exierience and has worked MITNIN, ma III (a] jar, I waxemilgisis InglawT.-I �-�
Why Raftelis?
I . We have worked for many agencies in Southern California. These include the ones named above plus most of the agencies in Orange County. As such, we often know what other local agencies are implementing for revenue increases and reserve policies which can be helpful during a rate study.
2. We are local. I live in Huntington Beach and, should in -person meetings be desired, I can quickly get to Downey.
3. We have the experts. Our staff includes former City Managers, Utility Directors, CFOs, Communications Specialists, and leaders in local government. Our communications staff will review our presentations and message to increase public acceptance of rate adjustments.
I am a Senior Manager and am authorized to bind and negotiate for the firm in contracts up to $200,000. My contall information is shown below. Should you have any questions please contact me.
Sincerely,
Steve Gagnon, PE (AZ), Senior Manager
Raftelis Financial Consultants, Inc. (DBA Raftelis)
445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 0: 213 262 9308 / M: 714 3512013 / E: [email protected] 445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 9 www,raftells.com
QUALIFICATION AND EXPERIENCE
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•
Local government and utility leaders partner with
Raftelis to transform their organizations by enhancin
1rerformance, planning for the future, identifying top I talent, improving their financial condition, and telling their story. We've helped more than 600 organization
in the last year alone. We provide trusted advice, and
our experts include former municipal and utility leade
,xitk ieczfes *f k7xis-*x ex;�eriexc"uxxi:xg situccess, organizations. People who lead local governments an
utilities are innovators —constantly seeking is
ruovide better service to the communities that rely on] them. Raftelis provides management consulting
expertise and insights that help bring about the Chan
that our clients seek. I
'THE RIGHT FIT
Resources & Expertise
With more than 130 consultants Raftelis has the larvest water -industry financial and rate consulting practice in the nation. Our depth of resources will allow us to
provide the City with the technical expertise necessary to meet your objectives. In addition to having many of
the industry's leading rate consultants, we also have
ex7nw.w i:-�d
and data analytics, to provide additional insights as
needed.
History of Similar Successes
We have an extensive track record of past similar work
that will help to avoid potential pitfalls on this project and provide the know-how to bring it across the finish
line. Raftelis staff has assisted 1,000+ utilities
throughout the U.S. with financial and rate consulting
services with wide-ranging needs and objectives. Our
and insightful recommendations to the City and will
provide validation for our proposed methodology
ensuring that industry best practices are incorporated.
User -Friendly Modeling
Raftelis has developed some of the most sophisticated
yet user-friendly financial/rate models available in the industry. Our models are tools that allow us to examine different policy options and cost allocations and their W Rol
Defensible Recommendations
When your elected officials and customers are
considering the validity and merit of recommended
changes, they want to be confident that they were
developed by experts using the latest industry standard methodology. Our senior staff is involved in shaping
irti-y,sv-f stai4ari-0,y chak3cig Ya6it-is c*naminces
the American Water Works Association (AWWA) and
members have also co-authored many industry -standard
books regarding utility finance and rate setting. Being so acfiTc1y-irTr*1vci
City informed of emerging trends and issues and to be
confident that our recommendations are insightful and
founded on sound industry principles.
Experts on California Regulatory Requirements
This expertise will allow the City to be confident that our recommendations take into account all of these
nt-, The re ulatory environment in
due to Proposition
218. Besides developing well -thought-out financial
[!Jans, Raftelis staff members are very knowledgeable
0hnW_dw.w__regulations and have made presentations on
this subject at various industry conferences. In addition, we are frequently called on to be expert witnesses
regarding these regulatory matters.
Registered Municipal Advisor
Raftelis is registered with the SEC and the MSRB as a
Municipal Advisor. Registration as a Municipal Advisor
is a requirement under the Dodd -Frank Wall Street
Reform and Consumer Protection Act. All firms that
provide financial forecasts that include assumptions
about the size, timing, and terms for i_3ossible future debt issues, as well as debt issuance support services for
studies and coverage forecasts, must be registered with and advice. Raftelis' registration as a Municipal Advisor means our clients can be confident that Raftelis is fully qualified and capable of providing financial advice
related to all aspects of utility financial planning in compliance with the applicable regulations of the SEC
and the MSRB.
Experience and !W*rences
Raftelis has the most experienced utility financial and management consulting practice in the nation. Our staff has assisted more than 1,200 local government agencies and utilities across the U.S., including some of the largest and most complex agencies in the nation. In the past year alone, Raftelis worked on more than 1,200 financial, organizational, and/or technology consulting projects for over 600 agencies in 46 states, the District of Columbia, and Canada. Below, 'mvimic Cky!c ?_&4_XC-§2
you to contact them to better understand our capabilities and the quality of service that we provide.
CITY OF LAKEWOOD CA
Jose Gomez, Director of Finance and Administrativf,
Services
P: 562.866.9771 ext 2601
E: [email protected]
Sal Mendez, Public Works Director
R 626,580,20dezp ,elmonteca.go
CITY OF MANHATTAN BEACH CA
Erick Lee, Public Works Director
R 310,802.5303 / E: eleep ,manhattan beach. gov
LA PUENTE COUNTY VALLEY WATER
DISTRICT CA
Greg Galindo, Former General Manager
P: 626.890,0797 / E: [email protected]
Roy Frausto, General Manager
P: 626.330.2126 / E: [email protected]
Jose Diaz, Water Manager
P: 714.288,2484 / E: [email protected]
9 -to
ri��ed Approam and Understanaipg
UNDERSTANDING
The City would like to review its current water rates and implement rates that adhere to cost of service principles, are equitable, and are least likely to be challenged under the suggestion that they do not meet Proposition 218 requirements. gezKiw r g
and Otay Water District. We will discuss the pros and cons of each rate structure with City staff.
PROJECT APPROACH
Rate studies usually consist of four phases. The first phase is our due diligence phase where we assess the main project �4�eirs_and_joals. We then assess how much revenue is reauired in Step 2. In Step 3,, we allocate costs to customer classes in the cost of service and design rates to collect the cost for each class. Lastly in Step 4, we perform public outreach to seek acceptance and adopt the rates.
Our quality assurance/quality control (QA/QC) procedure is as follows:
1 . Built -In Model Checks: The model has several built-in checks to ensure that the total expenditures are includ The built-in checks include: 1) ties to the clients total operating budget; 2) a revenue requirement check to e]nsu rates are collecting the right amount of revenue derived from the financial plan; and 3) a revenue proof to ensu rates are designed to collect the total revenue requirement.
2. Project Manager Review: The Project Manager reviews each model worksheet as the analyst completes them.
3. Senior Consultant Review: A Senior Consultant, who is not involved with the project, performs a complete model review. This review includes both modeling errors and adherence to common rate setting practices.
[IT-114t4gi.�11
Scope of Work
Project Manager is in Orange County, and we could (at additional cost) attend City Council meetings in person if desired.
Task 1: Project Management, kick -Off Meeting, QA/QC, and Data Collection This task includes time for client correspondence, billing, general project scheduling, and time to prepare meeting minutes. We propose to gather the required data and start the financial model prior to the kick-off meeting. Therefore, we will make the most of the kick-off meeting by coming prepared with questions. At the kick-off meeting we will:
• Introduce our project team
• Establish project goals and objectives
• Finalize the work plan and schedule
• Discuss pricing objectives, including equity, affordability, and revenue stability • Discuss the data request and any additional data requirements • Discuss goals for customer education and outreach as applicable MR
IVAN N1
model.
Meeting(s)/Conference(s): One kick-off meeting
Deliverables: Kick-off meeting agenda, •• materials, and meeting minutes Task 2: Financial Plan Model
ReaIMMu0sp, r*7--w4FAWqnue and extenses over a 10-glear (.Nlanni ,14 horizon. Ex�, - is will include: I water *perating costs; 2) water purchase costs; 3) capital improvement projects (CIP); and 4) reserve funding.
We will assess the City's ability to finance the CIP and fund reasonable reserves. City staff will be able to adjust expenses and revenue to see the effect on revenue requirements. We will review reserves for operating, capital, rate stabilization, and emergency purposes as applicable.
y
has proven to be particularly useful when making presentations to policyrnakers who must select from various Atmurtives. aflow4g t.tew t(.
example of a typical dashboard is shown on the following page.
Meeting(s): Will review the financial plan in subsequent task meetings Defiverables: Financial plan model in Excel
Task 3: Cost -of -Service Analysis
2-i 0r'I, - i •.
''T
1W,
U- W1. 1W,
1.4 141';�'
W_
11. 6
11� � s W-1 i �1sFCW
;1
Manual MI: Piinciples of Water Rates, Fees and Charges, 7th Edition (Manual MI), which was co-authored by several Raftelis staff members. Raftelis will first review historical consumption to assess water use patterns and peaking factors by customer class and tier. We will discuss if additional customer classes are warranted as evidenced by peaking factors.
Rate studies have three cost allocation steps: 1) functionalize costs into water service functions such as supply, treatment, distribution, billing, and customer service;, 2) allocate the functionalized cost to cost components such as water supply, A_AAw#t?�yA=qt-yznd determine the unit cost for each com-,tonent- and 31 distribute costs to the customer classes using the unit costs to establish the cost responsibility of each class. _010
[Feliverable(s): Cost -of -service calculation in Excel Task 4: Water Rate Design and Customer Bill Impacts
We will discuss pricing objectives to help guide and select a rate structure and the right balance between fixed and volumetric charges considering competing pricing objectives such as revenue stability, conservation signaling, affordability and fairness, and equity. We will discuss alternative rate structures. We will then calculate five-year rates.
We will decouple the rates into water purchase costs and operations. To communicate the cost nexus for tiered rates, t water rates have several cost components for each tier including, but not limited to water supply costs, delivery costs, peaking costs, conservation costs and revenue offsets (which lower the rate). These cost components will be summed t derive the total rate. I
Tan,
Meeting(s): Up to two draft results meetings with City staff Deliverable(s): Rate calculation model in Excel
Task 5: Drought Rates (Drought Pricing)
During a drought, volumetric rate revenue decreases. We will model the anticipated lost revenue during each stage of a drought and calculate drought rates to recover fixed/remaining costs. If the City has a Drought Response Plan, we will calculate drought rates for each stage identified in the Drought Response Plan.
Meeting(s): Results will be presented in the meetings for Task 4 Deliverable(s): Drought rate calculation model in Excel Task 6: Surrounding Agency Rate Survey
_!Mwir - i , , and bills for u(c to ei� ht surroundin water Aurvoors to com- are bills with the avera5miAill-of-a Downey customer. Note that water rates vary by purveyor and reflect each purveyor's upkeep of the system, revenue sources (taxes), topography, size, and water sources. We will try to compare similar water systems.
Meeting(s): Results will be presented in the meetings for Task 4 -Fycel
11! �iiiill I 1P l�Ir I
Task 7: Three City Council or Public Presentations Including One Public Hearing Raftelis will present at three City Council or other public outreach meetings. Here is one possible sequence of the presentations; however, we will work with City staff to finalize the presentations: 1) The first will be to inform the 6re�K4-oto) Ptdblic_�"
a presentation to the public; 3) The last Council meeting will be the Public Hearing required to establish rates. We will lirovide our PowerPoint presentation beforehand for staff review and comment.
Ig(s): Phone calls as needed to discuss the presentatiefli Weliverable(s): Presentations in PowerPoint
Task 8: Draft and Final Reports
Fkaftelis will prepare a Draft Rate Study Report which will fully derive the revenue requirement, the costs to serve each -lass and the rates. It will also show estimated customer bill impacts. We will define all assumptions used to calculate the. zmount of water in each Single -Family Residential tier. We will incorporate staff comments into the final version.
Meeting(s): Phone calls as needed to discuss the report P s
Task 9: Proposon 218 Public Hearing Notice
within the revyiredA5--chi-�i noticingg_XeriDA vriQLIQ h Idin h public hearing. Raftelis will draft Proposition 218 Notice content in a Word document for the City's legal review/approval. The notice will outline the proposed rate changes, the rationale for the proposed rates, and explain the right of the customer to protest/oppose the proposed rates. After City review, our Creative Services Group will use InDesign, a graphics software, to create a visually appealing notice. We will submit a draft to the City for review/comment/approval. This estimate does not include mailing of the notice as it is often easier for the City to work with its approved printer.
Meetings: Phone calls as needed to discuss the Public Notice Defiverables: Draft and design Proposition 218 notice, liaison with printer/mail house
FEEEII��
Optional Task 10: General Fund Cost Allocation Plan to the Water Enterprise This task is for a separate analysis, termed a Cost Allocation Plan, that allocates citywide support services, such as IXAIN—Ilwt�Rs��y, Human Resources Financej 1" AttorneVI's office CiULMan&Ver's office etc. to the water enterprise. Note this plan allocates costs to the water enterprise only.
We will submit a data request specifically for the Cost Allocation Plan. The request will include the cities FY 2023 W444W-A—Z-v
council agendas, personnel count, payroll, etc.
We will then develop a model that allocates support service (HR, Finance, Legal etc.) costs to the water enterprise. The Water Enterprise Fund would not be able to function effectively without the support from the General Fund and related support services. Therefore, the City's General Fund can be reimbursed • the Water Fund • these support services.
For example, the Human Resources •`fr could allocate their costs in proportion to FTE • payroll. The Finance deicart Lts 1�trejcare the water dei�wartmenfs bud allocate their costs in proportion to the value of the water N�m 1j
enterprises budget to the total citywide budget. Certain departments are more difficult to allocate such as the City Manager's office. In these cases, we often really on a educated estimate • that department. It is also common for other departments to provide services directly to the Water Fund. In these instances, it may be more appropriate to utilize a direct charge allocation basis to reflect the true cost •': service. Raftelis will provide a • allocation model and the resulting total cost to the water enterprise will be incorporated into the rate study, if this task is selected.
Deliverables: Cost Allocation Plan Memo or Report
Pr *ect Team
01 CITY OF
DOWNEY
Our team has worked together before on
PROJECT DIRECTOR
studies in the LA basin. Here, we have
Sudhir Pardiwala, PE
included an organizational chart
showing the structure of our project
team. In our Appendix, we have
included resumes for each of our team
members as well as a description of their
PROJECT MANAGER
TECHNICAL REVIEWER
role on the project.
Steve Gagnon, PE
Charles Diamond
COMMUNICATIONS STAFF
STAFF CONSULTANTS
Matt Wittern, APR, PMP
Los Angeles Staff
Teant AvailabOity and WbliWbiad
ZPP1L)X1111dtC1y DO,Vr' I lost
znalysts are working on his projects and will have ample availability after July 2022.
Team Member Current Projects
Percent of Time
Anticipated Completion Date
Steve Gagnon, RE
City of Manhattan Beach
10%
July 2022
(Has 3%® availability)
City of Tracy
5°/®
July 2022
City of Dixon
2%
TBD
Otay Water District
15%
July 2022
City of Orange
15%
Jan 2023
Rincon Del Diablo Water District
5%
July 2022
City of Hollister
10%
July 2022
East Orange County Water District
5%
July 2022
Sudhir Pardiwala, RE
(Has 48% availability)
Charles Diamond
(Has 25% availability)
Matt Wittern, AP
(Has 35% availab�i;ity`)P
City of Torrance
10%
August 2022
Valley County Water District
10%
March 2022
Carpinteria Sanitary District
7%
March 2022
El Toro Water District
15%
May 2022
Yorba Linda Water District
10%
March 2022
Placer County Water Agency
10%
May 2022
City of Ventura
15%
May 2022
Mojave Water Agency
20%
Dec 2022
Santa Ana Watershed Protection Authority
10%
June 2022
Jurupa Community Services District
20%®
August 2022
Tuolumne Utilities District
25%
Sept 2022'
Northern Water
25%
Ongoing
Green Bay Water
10%®
Dec 2024
Carpinteria GSA
5%
— -- - --------- --
Aug 2022
The following table provides a breakdown of our proposed fee for this project. This table includes the estimated level of e-Nort reWire4 fir
_UkP2J_*fflXb;JWh*iq ruswfa -�--*'-tp-w-m-members-Fkr)enses include cow, associated with travel and a $10 per hour technology charge covering computers, networks, telephones, postage, etc. We have included the optional Task 10 at the bottom of the table.
City of Downey
Number
Hours
Virtual of In-
Total Fees &
Tasks
Meeting Person PD
PM
TR
MW SC GD
Total
Expenses
1. Project Management, Kick-off Meeting,
1 1
16 6
23 $6,080
QA1QC, and Data Collection
2. Financial Plan Model
1 F3 c
2 24
35 $7,760
3. Cost -of -service Analysis
I
a
1 24
34 $7,535
4. Water Rate Design and Customer Bill
2 1
10 2
24 37
$8,330
Impacts
5. Drought Rates (Drought Pricing)
6 1
14 21
$4,665
6. Surrounding Agency Rate Survey
1 2
a
10 $2,130
Reports 1 12
U. Proposition 218 Public Hearing Notice 1z
Total Estimated Meetings I Hours 5 3 4 100 6
Hourly Billing Rate $340 $275 $215
Total Professional Fees $1,360 $27,500 $1,290
PID - Project Director, Sudhir Pardivala, PE (CA)
PM - Project Manager, Steve Gagnon, PE (AZ)
TR - Technical Reviamr, Charles Diamond
CS- Communications Staff, Matt Witarn, APR, PMP
SC - Staff Consullants
GD - Graphic Designer
4 40
10. Optional Task: Cost Allocation Plan 5 32 88 a 128 $27,440
Raftelis will complete the scope of services within the timeframe shown in the schedule below. The proposed schedule assumes a notice -to -proceed by mid -May and that Raftelis will receive the needed data in a timely manner and be able schedule meetings as necessary. Project completion is estimated for January 2023.
MEN
1. Project Management
Kick-off
City Provides
Requested ■.
2. Financial Plan
Model
3. Cost -of -service
Analysis
t. Water 5!ate Desigi
and Customer Bill
Impacts
5. Drought Rates
■, Pricing)
6. Surrounding
Agency Rate Survey
7. Three City Council
or Public
Presentations
8. Draft and Final
Reports
i_9Jr,T,T,T4Ur,T,1FH�.
22�=
*Meetings/Workshops 0 Deliverables
JAN
APPENDIX., RESUMES RAFTELIS
7T1TWFA1rF1E19Vl
Sudhir PardiwalaPE
PROJECT DIRECTOR
Executive Vice President 61
ROLE Specialties
Sudhir will be responsible for overall project accountability and will be available Cost- of -
to provide quality assurance and control, industry perspective, and insights into servic the project. e rate
studie
PROFILE
Cons
ervati
Sudhir has 40 years of experience in financial studies and engineering. He has on &
extensive expertise in water and wastewater utility financial and revenue droug
planning, valuation, and assessment engineering. He has conducted numerous ht
mana
water, wastewater, stormwater, and reclaimed water rate studies involving geme
conservation, drought management, risk analysis, as well as system development nt
studie
fee studies, and has developed computerized models for these financial s
evaluations. Sudhir has assisted public agencies in reviewing and obtaining Econ
alternate sources of funding for capital improvements, including low -interest state ornic
analy
and federal loans and grants. He has assisted several utilities with State Revolving ses
Fund and Water Reclamation Bond loans. Sudhir authored the chapter on Water
reclaimed water rates in the Manual of Practice No. 27, Financing and Charges far &
waste
Wastewater Systems, published by the Water Environment Federation (WEF). He water
also authored a chapter entitled, "Recycled Water Rates," for the Fourth Edition utility
of the industry guidebook, Water and Wastewater Finance and Pricing: The Changing costaccou
Landscape. Sudhir was vice-chairman of the California -Nevada A Business nting
Management Division and Chairman of the Financial Management Committee.
Valua
tion
Finan
KEY PROJECT EXPERIENCE
vial &
reven
City of Vallejo (CA)
ue
The City of Vallejo (City) engaged Raftelis to develop a financial plan for the planni
water utility to ensure that the City would not be in technical default of its bond ng
Asses
covenants after another consultant had completed a rate study. In short order, sment
Raftelis prepared a Financial Plan to help the City tide over the immediate crisis engin
and assisted with developing a Proposition 218 notice and with mailing it to over eering
Revie
42,000 customers and properties. Subsequently, the City again engaged Raftelis in wing/
a competitive proposal process to conduct a cost -of -service and rate study. The obtain
City has multiple service areas and financial plan and rates were determined for in
capita
each area. Raftelis redefined the tiers based on the water usage patterns in the I
City single family class and developed uniform rates by customer class for multi- impro
family, non-residential, raw water and construction classes. Raftelis made several veme
nt
presentations to a Utility Advisory Committee and supported staff in workshops fundin
with City Council. The City Council accepted our report and Raftelis assisted in 9 Comp
drafting the Proposition 218 notice and mailing it. Raftelis also calculated rates uter
for contract customers American Canyon and Travis Air Force Base schools. model
ing
Professional History
City of Brentwood (CA)
Sudhir served as project manager for a water and wastewater rate study for the City of Brentwood (City) that involved a comprehensive review of the City's financial plan and rate structure. The City has a total of over 17,500 water and wastewater accounts. Water is supplied through two main sources: local groundwater, from the City's groundwater wells, and surface water that originates from rivers within the Sierra mountain range and flow into the Delta. Surface water is treated at the City of Brentwood Water Treatment Plant (Brentwood TP) and the Randall Bold Water Treatment 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 (1\4GD). The study included a comprehensive review of the City's revenue Yin% n4A z:- 4-7 a review of Ciqa's user classification a cost -of -service aaa _,5j—s and rate desiV& for City users. The resulting rates were fair and equitable and met the fiscal needs of the City's utilities in the context of 1 4
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 Raftelis develo.Ded 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. Raftelis has been retained for two rate cycles for the City.
City of Ontario (CA)
Sudhir served as project manager on multiple water, wastewater and solid waste rate studies. The study included a classifications, a cost -of -service analysis, and rate design for City users.
Raftelis designed tiered water rates, recycled rates and wastewater rates considering Inland Empire Utilities Agency (IEUA) rates. Solid waste rates were designed to recover costs. Raftelis provided the City with a model that is used for planning purposes by the City. The City has engaged Raftelis multiple times to update these rates, optimize water sources to minimize costs.
City of Redlands (CA)
significant rate adjustments as well as rate structure adjustments to ensure financial stability, meet debt coverage and regulatory requirements. The analysis included calculation of outside -City charges and impact fees. The City received user-friendly working rate models for future updates. Sudhir assisted the City with State Revolving Fund loans for reclaimed water and potable water. He helped them find grants for the reclaimed water project and water treatment plant upgrade. He has been assisting the City biennially with their water, wastewater and recycled water rates.
City of Palo Alto (CA)
Sudhir was project manager for a study for the City of Palo Alto (City) to determine the cost -of -service rates consistent with Proposition 218. The study involved review of fire service charges, booster pumping rates, strict adherence to cost -of - service principles. The study was conducted with the participation of a citizens' advisory committee. Raftelis developed a user friendly rate model, provided City staff training on use of the model. The proposed rates were implemented July 1, 2012. Raftelis assisted The City with an update developing conservation rates with the State mandated reductions in usage.
City of Santa Barbara (CA)
Sudhir has been assisting the City of Santa Barbara (City) with their water, wastewater and recycled water financial plans and cost -of -service rates studies involving rates for different customer classes including agriculture, outside City, tiered
if 114tAlr[�E I
residential, commercial etc. Wastewater rates were developed for various funding sources including grants and SRF loans. The City is facing severe water supply shortages and water rates included evaluation of multiple drought stages, the rates and impacts on customers as well as funding desalination to provide adequate supplies for the City's customers.
Raftelis also evaluated system capacity fees for new water and wastewater customers.
Olivenhain Municipal Water District (CA)
Sudhir assisted the Olivenhain Municipal Water District (District) in conducting a water financial plan study and a rYw,alvL,,4;,v_-;acMwzv lmi
was developed to assist the District in evaluating different financing alternatives to minimize rate impacts and ensure financial stability. The water model was effectively used in Board meetings and presentations to evaluate the impacts of various scenarios. Additionally, Raftelis calculated drought/conservation rates for different stages of cutbacks. The recycled water rate study was conducted to determine the recycled water rates charged to customers given that the District obtains recycled water from four different sources: the City of San Diego, Vallecitos Water District, Rancho Santa Fe Community Services District, and the 4S Regional Recycled Water System. The existing agreements defined the costs of different sources of recycled water to the District. To address all of those issues and concerns, Raftelis developed a recycled water financial and rate model to determine the costs of providing service and the required revenue to be -ilt to evaluate when the District is able to take over the 4S Regional Recycled Water System, as stated in the agreement with the developer.
City of Sacramento (CA)
Sudhir managed a wastewater rate study to examine the charges associated with different types of residential and non- residential customers. The study included a comprehensive review of the City's revenue requirements and allocation of Cit�_,'s user classification, a cost -of -service analysis, and rate design for Cit.-ki users. Sacramentois one of the few large Cities in the State that does not meter residential and a significant number of non-residential customers. The strength and flow allocation to these customers was revised. The resultant rates were fair and equitable and met the fiscal needs of the City's wastewater utility 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.
City of San Diego (CA)
Timi%ne "imitudies of� Ci San Dieego ZI Cia, cludin a water, wastewater and reclaimed water rate study. The entire wastewater rate study was conducted with extensive stakeholder group involvement because of the changes required in the wastewater rate structure to meet regulatory requirements. In addition, Sudhir served as project manager for the City's reclaimed water rate study, impact fee studies for both water and wastewater, and a transportation charges study for agencies contributing to the City's regional wastewater facility. Sudhir also managed a water demand study which involved statistical analysis of historical water consumption to model projections based on weather, economic activii7i�v I �tion inflation etc, Sudhir evaluated the feasibility of a water budget rate structure for the CitV.
He assisted the City with the Proposition 218 noticing and public outreach.
City of Beverly Hills (CA)
Sudhir served as project manager for Raftelis' engagement with the City of Beverly Hills (City) water and wastewater rate studies. Raftelis was engaged by the City to develop a rate and financial planning model that would be used to evaluate alternative rate structures and to provide more detailed forecasts to assist in the preparation of updating rates in future years. Raftelis modeled numerous alternative rate structures and reviewed customer and revenue impacts before recommending that the City modify its current three tiered rate structure to include a fourth tier that targets large gation usage. In addition, Raftelis recommended that the costs of service based on flow and strength. Raftelis continues to provide biennial updates to the City model so that rates may be projected in future years.
City of Ventura (CA)
Sudhir served as project manager for a water, wastewater, and recycled water cost -of -service and rate study for the City of Ventura (City). The City had not updated its rate structure in 20 years. Additionally, the City was under a cease and desist order that required the City to carry out improvements estimated at more than $55 million, and which the City wanted to start funding to mitigate impacts. The goal of the study was to develop conservation -oriented rates consistent with cost -of -service to recover adequate revenues to pay for necessary capital improvements, meet debt service coverage requirements, as well as maintaining sufficient reserve requirements. The study included a comprehensive review of the L- - age Cc *, rwotalk� us attems a cost -of -
service analysis, and rate design for City users. Raftelis developed long-range financial plans so that the water and wastewater utilities could be financially stable and save costs in the long run. We also assisted the City with developing different water and wastewater rate alternatives with various scenarios as well as calculating outside -city rates. The study was conducted with several meetings and input from stakeholders comprised of customers within the City. Raftelis educated the Citizen Advisory Committee on the basics of rates, cost allocations, and rate design to obtain their buy -in through the use of the dashboards in the rate models we developed for them to demonstrate the impacts of various revenue adjustments on the long-term financial stability of the enterprises. Raftelis also developed a schedule for funding a major wastewater program required by environmental groups. Recommended rates were implemented for two years in July 2012. Raftelis updated rates for the City in 2014 and provided water drought rates.
Goleta West Sanitary District (CA)
Sudhir has been Goleta West Sanitary District's (District) financial consultant for over more than 15 years. During that program, developing a rate structure, annexation fees, connection fees, miscellaneous fees, reserves policy development, and other financial issues. The District charges customers on the tax roll. Raftelis developed the data to be included on the tax roll and the District now manages it.
Mq=
SuMili was projecE manager for a cusf-M-Nuillcc sTTuj 101 Miel , =,mur, L L 7 ji evaluate the current system of rates and charges to ensure that users were being charged appropriately. The District has not updated its rate structure system for many years and the current system based on fixture units is believed to need restructuring. Raftelis managed the sampling and wastewater flow monitoring from different types of users to determine the definition of an equivalent dwelling unit and the flows from different types of users. There are multiple outreach meetings with member agencies and interested stakeholders to educate them on the process and to obtain buy -in.
Vallejo Flood and Wastewater District (CA)
Raftelis assisted the Vallejo Flood and Wastewater District (District) with a comprehensive wastewater rate and connection fee study (Study). The District an independent special district that collects, treats, and disposes of wastewater for 38,000 accounts in the City of Vallejo with a service area that covers 36 square miles and includes one wastewater treatment plant and 36 wastewater pump stations. The existing sewer rate structure comprised of flat rates for all residential customers, including single and multi -family residences. For commercial customers, rates were based on both flow and sewage strength. The District was moving over to a service charge to be levied on the property tax roll. Raftelis was called in to assist with this study after another consultant's study was found to be unacceptable to the District. As part of the study, Raftelis thoroughly examined the District's revenue streams, cost structure, analyzed customer data, and developed an equitable rate structure that met both Proposition 218 requirements and the District's goals and objectives. An important part of the study was the evaluation of the commercial customer classifications to ensure that customers were accurately categorized by strength and assessed the appropriate rates. Raftelis also created a user-friendly model so that various scenarios could be evaluated on the fly. Additionally, Raftelis also reviewed and updated the District's connection fees. Upon completion of the rates calculation, Raftelis assisted the District in a comprehensive rates for fiscal year 2019.
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City and County of San Francisco (CA)
The City and County of San Francisco (City) conducts water, wastewater and stormwater studies every five years to manager for two cycles of rate studies for the City. The City has a combined wastewater and stormwater system and costs for stormwater are integrated with wastewater. The City was engaging in a multi -billion dollar capital improvement program that would have significant impact on rates. The City has unique microclimates and Raftelis analyzed the water usage characteristics of single family and multi -family users to develop a rate structure that would provide incentives for conservation. Raftelis evaluated incentives to encourage low impact development, reviewed stormwater practices to provide credits for best management practices to reduce stormwater generation. Raftelis performed an overhead cost allocation study consistent with federal requirements of OMB Circular A-87 to assign costs appropriately to different departments in order to obtain federal reimbursement for projects that are eligible for federal assistance.
Napa Sanitation District (CA)
Sudhir was project manager for a recycled water rate study for the District. The District was required to restrict summer discharge of its wastewater into the river. The District had made imt,,rovements to its treatment 1 - bdant to 1%roduce re cled water and provided incentives to recycled water customers to use the water. Agreement with customers were to end recycled water program. The District wanted to review the economics of the improvements and determine the impacts resulting from implementing new recycled water rates. Raftelis developed a financial and rate model that considered the new customers and revised rates and the impact of providing discounted rates on wastewater customers. The District held meeting with the recycled water users and obtained input on issues of concern to them. Raftelis provided support to the District and evaluated the results of the surveys conducted to define the rates.
City of Henderson (NV)
Sudhir served as project manager for the engagement with the City of Henderson (City). In Phase 1, Raftelis assisted the City in conducting a water and wastewater financial assessment. Raftelis developed a financial vision which will ultimately shape the utilities for the next 10 years. As part of our conceptual design process, Raftelis recommended several alternative rate philosophies to be evaluated as part of Phase 11. The Model was also developed to evaluate certain rate philosophies and user charge structure modifications focused on improving the equitable recovery of costs from different user classes, legal defensibility of the rates and system development charges, revenue predictability, and get for different meter sizes to ensure that the tiered rates set up would fairly collect revenues from customers. Raftelis updated the City's financial plan by participating in the City's rate implementation process. This included presentations of final findings and recommendations to City Council and the Citizen's Advisory Committee.
City of North Las Vegas (NV)
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Las Vegas (City). At the time, the City had experienced rapid growth and had a significant amount of capital projects including construction of their own treatment plant. The City faced many financial challenges at a time when there were signs of a slowing economy. Raftelis conducted a multi -year financial plan that examined various customer growth, capital funding, and rate revenue assumptions. Raftelis prepared rate models for both water and wastewater and trained City staff on their use. The models provided dashboards for ease of use and decision making.
City of Portland (OR)
The City of Portland (City) wanted a financial planning and rate model to determine rates for its wholesale and retail customers. Sudhir served as project manager for this study. The City provided wholesale water to 19 agencies under old agreement that were expiring soon. The City was finalizing long-term agreements with explicit terms on rate setting. The
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single family customers and tiers based on the average usage in the preceding 12-month period for the remaining customers. The current retail rates applied to all classes and did not take into account peaking which factors can vary fiWrate•
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conservation. Alternative rate structures includean
uniform volume rates, seasonal rates, increasing and "V" or "U" shaped block rates, and a range of inddualized blo or customer characteristics. Raftelis•rovided the Cic
with the computer model and provided training and a manual in the user of the model.
In 2012, Sudhir managed a bond feasibility study for the City's Bureau of Environmental Services. The City needed to imye )i,*irfs_f*,r seyeral ter-7.2,4 stoirmwatl
systems. Raftelis met with City staff and reviewed the CIP, business processes, rates and rate setting procedures, and the City could sell bonds with a good rating.
City of Tacoma (WA)
Sudhir was project manager for a study to develop financial plans and rate models for the City of Tacoma's (City) Etww#*ik,nr;tiwrstmgaw utilities. The stak, involved develo ment of user friendly financial and rate planning models that would allow the City to update rates on an annual basis, quickly make changes, and review rates. The m•odel also provided capability to compare the status of the CIP, and actual �hi vr�ss e�as-* the model was integrated
with the City's SAP and E Builder system. The financial plan and rates were reviewed with input from the City's Environmental Services Commission. Raftelis turned over the models to the City, provided training and computer Sudhir also provided financial planning models to the City's water utility, which included user-friendly features and benchmarking tools to maximize improvements in operations and management.
City of Los Angeles (CA)
for various customers. The model incorporated many user friendly features to assist the City update rates and prepare financial plans on an annual basis. Solid waste rates included non-residential customers based on size of containers and frequency of collection. Wastewater rates to the 27 subscribing agencies discharging to the City's wastewater treatment facilities were also determined. This involved complex calculations and allocations to wastewater loadings, conveyance distance, etc. Connection or impact fees were also included in the model. User training, model documentation, regular updates and ongoing service were also included in this project.
Sudhir also served as project manager on a wheeling charges study for the Los Angeles Department of Water and Power.
The Cib�y, was interested in deter tining-t AW~
extra capacity in the City's system from the Los Angeles Aqueduct to the distribution network -to transfer water.
City of Pasadena (CA)
SndVir_r:. i 'ect aj -im—ugger for a stud- Citv to determine roll -out charhes for solid waste y for the City of Pasadena
replacing them again. Sudhir analyzed the costs associated with this service and set up a charge for it.
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• City of Anaheim (CA) - Water rate study
• City of Atwater (CA) - Water and wastewater rate study • City of Banning (CA) - Recycled water revenue program • Beaumont Cherry Valley Water District (CA) - Water rate and connection fee study • Carpinteria Sanitary District - Wastewater rate study • Casitas Municipal Water District - Water rate study
• Castroville Water District (CA) - Water and wastewater rate study • City of Beverly Hills (CA) - Asset replacement study, connection fee study, conservation rate study, valuation and development of replacement program and asset inventory, and water rate study and update • City of Brea (CA) - Water rate study, connection fees and related fees and charges study • City of Brentwood (CA) - Water and wastewater rate study • City of Buenaventura (CA) - Water and wastewater rate study • City of Burbank (CA) - Bond feasibility study, reclaimed water study, and water and wastewater rate study • City of Carlsbad (CA) - Asset replacement study and water, wastewater and reclaimed water revenue program • City of Chino (CA) - Valuation study and water rate study • City of Chowchilla (CA) - Water and wastewater rates study • Clark County Water Reclamation District (NV) - Cost -of -service study • City of Cloverdale (CA) - Water and wastewater connection fees and rate study • City of Corona (CA) - Water and wastewater rate study • El Toro Water District (CA) - Water budget and wastewater rate studies and connection fees • City of Encinitas (CA) - Water and wastewater rate study • City of Escondido (CA) - Valuation study, water and wastewater rate study • City of Glendora (CA) - Water and wastewater financial planning and rate study • Goleta Water District (CA) - Water and wastewater rates and connection fees studies, asset management, and financing plan
• City of Henderson (NV) - Water and wastewater rate study • La Canada Irrigation District - Water rate study
• La Crescenta Water District - Water and wastewater rate study • City of Livingston (CA) - Water, wastewater and solid waste rates study and litigation support • City of Los Angeles (CA) - Wheeling charge review
• Los Angeles Department of Water and Power (CA) - Water rate study and wheeling charge review • City of Madera (CA) - Water and wastewater rate study • Mammoth Community Water District (CA) - Water and wastewater rate study • Metropolitan Wastewater Joint Powers Authority (CA) - Wastewater valuation study and capacity valuation study
• Napa Valley Sanitation District (CA) - State revolving fund loan assistance • City of North Las Vegas (NV) - Water and wastewater rates study and model • Ojai Valley Sanitary District - Wastewater rate study • Olivenhain Municipal Water District (CA) - Water and wastewater financial planning studies and recycled water rate study
• City of Ontario (CA) - Water, wastewater and solid waste rate study • Palmdale Water District (CA) - Water budget rate study • City of Palo Alto (CA) - Water rate study
• Portland Water Bureau (OR) - Retail and wholesale water rates model • City of Poway (CA) - Wastewater rate structure analysis • Ramona Municipal Water District (CA) - Water rate study • Rainbow Municipal Water District (CA) - Water, wastewater rate and capacity fee studies • City of Redlands (CA) - Impact fee study, non -potable water fee study, rocky mwc, valuation and lease study, bi- annual rate updates, reclaimed water funding, and water and wastewater rate study
• City of Rialto (CA) - SRF funding and water and wastewater rate study • County of San Bernardino (CA) - Water and wastewater rate study and connection fees • City of San Diego (CA) - Recycled water rate study, valuation study, and water and wastewater financial plan, rate and connection fees study, litigation support
• San Diego County Water Authority (CA) - Capacity valuation, rate analysis, valuation study, and wheeling charge study
• City of San Fernando (CA) - Water and wastewater rates study • City of San Francisco (CA) - Water, wastewater rate study and stormwater incentives for low impact development
• San Gorgonio Pass Water Agency (CA) - Financing plan
• City of San Jose (CA) - Sewer service related fees and charges • City of San Luis Obispo (CA) - Stormwater financial feasibility study •r City of Santa Barbara (CA) - Water and wastewater rate study • City of Santa Fe springs - Water rate study
• Santa Fe Irrigation District (CA) - Wastewater treatment plant cost evaluation, water connection fees study, and water rate study and update
• City of Santa Monica (CA) - Wastewater rate study
• City of Scottsdale (AZ) - Impact fee study
• City of South Pasadena (CA) - Water and wastewater rate study • City of Springfield (OR) - Wastewater rates model
• Sweetwater Authority (CA) - Water rate study
• Tacoma Public Utilities (WA) - 2008 Business planning assistance and financial model • City of Upland (CA) - Valuation study
• City of Vallejo (CA) - Water financial plan
• Valley County Water District (CA) - Water rate study
• Town of Windsor (CA) - Impact fee review, state revolving fund loan application assistance, water and wastewater connection fees and rates study, and water and water reclamation rate studies
Steve GagnonPE (AZ)
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the consulting staff in conducting analyses and preparing deliverables for the project. Steve will serve as the City's main point of contact for the project.
Steve has 20 years of experience in financial analysis and environmental engineering. His broad range of experience includes water and wastewater rate T liu i � valuations, Steve has also oLerformed s�trate& financial analysis of water sourcing alternatives and costing of ground water remediation alternatives, asset inventory and condition assessments, utility performance metrics, and earned value analysis. He has also managed the construction and installation of water treatment equipment and overseen Superfund remediation for the U.S. Army.
KEY PROJECT EXPERIENCE
Utility Rate Studies and Long -Range Planning Experience City of Manhattan Beach (CA)
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set rates. The City had two major concerns; 1) wells were impaired in the near term and the city would have to purchase more imported water and 2) the City was unsure about tiered rates given recent litigation. Steve worked with city staff to discuss the pros and cons of tiered rates. After reviewing these pros and cons Wi_iAtE.wAL-91w "s
as of this writing. Steve will present the financial need and rate study results to city council and the public.
City of Lakewood (CA)
Steve helped the City of Lakewood (City) develop cost -of -service based tiered water rates. Of note, Steve recommended revising the current practice of 12roviding free water for the first four units of water in single family first tier, To A Nil,
year perioa. i ne stuay inclucfea a rul rive -year financial plan anct a review an recommendations on reserve levels.
City of Orange (CA)
to ensure that rates are based on cost -of -service principles. The study includes a financial plan to fully fund operational and capital expenses and reserves. Steve also helped the City establish wastewater rates for its sanitation enterprise. The L033=
Professional History
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City of Tracy (CA)
In 2019, the City of Tracy (City) engaged Raftelis to perform a wastewater rate study. Raftelis is currently working with City staff to best plan for expenses to minimize customer impacts, and Steve is serving as Project Manager.
City of San Diego (CA)
The City of San Diego (City) is considering a renewable energy project to take landfill gas and create electricity. Steve prepared a financial model evaluating three alternatives: 1) do nothing and purchase electricity from a regional provider, 2) enter into a contract with a private entity to run and the renewable energy facility and sell electricity to the City at an agreed upon rate, 3) to purchase the facility and run it with City staff. The analysis gives the City a range of acceptable electricity rates for negotiating with a private party for option 2.
Delta Diablo Sanitary District (CA)
NiUmpmmmanoweansultant to HDR -is Lcreitaring the financial anajr&iLfQr ,I totential food waste to enerr f ect in which the Delta Diablo Sanitary District (District) would take food waste slurry, convert it to biogas and sell electricity. There are many unknowns in the project including exact operations and maintenance costs and the tipping fee from the nearby landfill. Steve is performing a Monte Carlo simulation to help the District visualize the probability of a financially viable project given all the unknowns.
Running Springs Water District (CA)
Steve is assisting the Running Springs Water District (District) establish water and wastewater rates and evaluate the financial health of the Fire and Ambulance Department. The District is unique in that many residents are absentee owners of vacation homes. As such, the District is maintaining a higher than average level of fixed charges for both water and sewer to equitably distribute costs among full-time and part time residents. Steve also prepared a I 0-year financial ?:!�J other revenue and
expenses assumptions, including fire engine replacement.
Encina Wastewater Authority (CA)
Steve is helping the Encina Wastewater Authority (Authority) analyze the Net Present Value of three large capital investments: I their co- eneration facili6, 2J the heat �6er and 3 the fats oils and greases FOW receivini facili that Value of electricity purchase costs with and without the co-gen facility. The heat dryer analysis involves calculating the i4t6Z*eA& **J6W_gA VaYNE-
heat dryer and its reduced sludge disposal costs. Lastly, he is helping the Authority analyze its options for alternative digester fuels for co -digestion to enhance digester gas production - FOG versus beer waste - based on the tipping fees and zssocizte,i. nizinteriance costs of each.
Hi -Desert Water District (CA)
Steve is hebving the Hi -Desert Water DistrictQistrict establish defensible and affordable water rates for a District with 7 high number of low-income residents. The study includes an update of their miscellaneous fees. The District has one main source of water, which limits the rate differentiation between tiers. The study includes an extensive outreach [�rogram to educate customers as to the need for rate adjustments.
City of Port Hueneme (CA)
The City of Port Hueneme (City) has some of the highest water rates in the area due to the amount of capital Citip Council and Staff assess the imtacts of their decisioi including capital reinvestment, loan refinancing and fixed charge pricing on customer bills. The study included a rate workshop with City Council to show the Council the effects of their decisions.
Mesa Water District (CA)
Mesa Water District,(Distdct sW_yAsmL&- ' uwrtftd_aimer exe-_hd,_=dAhe -).Nrides itself on the fact that it is no longs&g ------ 1Lu - =SL- -_ District revise their water and recycled water rates in a few months during a fast -paced rate study. The study included over 10 financial plan options for the Board to select from.
City of Pomona (CA)
Steve is currently helping the City of Pomona (City) establish water, recycled water and wastewater rates. He is establishing defensible tiered rates based on the City's multiple sources of water and use characteristics. He is also establishing pumping charges based on the costs associated with serving water to high elevation customers. The W_g2mg��_Djxi tp_%r�'Kij g
goals. It also includes a 10-year financial plan and modeling rates under industry standard reserve targets.
Channel Islands Beach Community Services District (CA)
rates. Particularly noteworthy in this study was a class of customers that required the District to reserve capacity in the water treatment plant for possible future growth. Steve explained the cost causation -based rate for this customer class ai R)'oard meetings and the Public Hearing. Steve also held special web -based workshops with this customer class to explain cost -of -service principles and the basis for the rates. I City of Shasta Lake (CA)
The City of Shasta Lake's (City) water revenue dropped significantly during the recent drought - while their water costs 's infrastructure was over 80
years old which necessitated significant capital expenditures. Steve worked with City staff to develop a water financial plan that fully funded their capital program, reserves and operational expenses. The financial plan called for a % revenue increase in one year. Steve presented the it for revenue adjustments and rate development at a well-attendei public hearing at City Hall.
Santa Fe Irrigation District (CA)
Santa Fe Irrigation District (District) has one of the largest per capita water use rates in the State due to its large lots, many of which have orchards and other agriculture requiring irrigation. Steve worked with City Staff and Board members to establish water cost -of -service based rates which included a complete restructuring of their fixed charges so that the District could pass through their fixed wholesaler charges. The consumption rates were based on the peaking UVINQUIM _*T01-rao 4 KSJVMIQII resented at a contentious Public Hearin n which that rates were ad ted to answer Board and the Public's questions.
City of Encinitas (San Dieguito Water District, CA)
based rates creates large bill impacts for the agricultural class. Steve worked with City staff and the Board rate setting committee to evaluate rates and explain rate setting basics to the committee and public in a Proposition 218 public hearing.
Trabuco Canyon Water District (CA)
Steve helped the Trabuco Canyon Water District (District) establish water, wastewater and recycled water rates. The Trabuco Canyon Water District's revenue plummeted significantly during the recent drought. Steve helped the District established rates, including drought rates, that fully funded operations, capital expenses and reserves. The District r�,reviously had a 7-tier rate structure. Steve helped the district establish a 4-tier rate structure in which the rates were based on the supply costs and peaking costs to serve water in each tier - as required by Proposition 218. The study started with a
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pricing objectives exercise so that the Board could communicate its most important rate setting goals. Steve presente-il financial plan options and rate study results and a public hearing.
Sweetwater Authority (CA)
&wn- in light of recent legal concerns over
their curr ent rate structure. The evaluation includes a cost -of -service study to clearly demonstrate the nexus between the r?, W-ex v7 4wimje-ft�41pWir z
members regarding their water pricing objectives so that rates could be designed accordingly. Steve concluded the study with presentations to the District Board of Directors and the Public.
Moulton Niguel Water District (CA)
Steve prepared water and wastewater capacity fees and miscellaneous fees in June of 2016. The water and wastewater capacity fees were calculated using the buy -in methodology and varied by meter size. The Moulton Niguel Water District (District) also decided to implement a water demand offset fee for new water connections based on the premise that the recycled water system offsets potable water use and benefits potable water users. Steve attended Board meetings to help staff explain the rationale and basis for the capacity fees.
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benefit burden rates and material charges to property calculate over three if fees for the water and wastewater systems. The deliverable included an excel model with which the District could update the miscellaneous fees in the fulire.
City of Henderson (NV)
Steve is creating water and wastewater rate and financial planning models for the City of Henderson as well as updating their water and sewer system development charges. The models will be used over the next 5 to 10 years not only to calculate water and wastewater rates but also to create yearly financial statements.
City of Redlands (CA)
Steve updated the City of Redlands (City) water and wastewater rates and development impact fees. The rate study process included workshops with the City's Utility Advisory Committee in which he presented the basics of rate settin�!u - — ----- e.. -ofthe-utilitit�sThe4nteractiv
staff regarding revenue adjustments and rates.
Rainbow Municipal Water District (CA)
Steve created water conservation -based sewer rates to complement the Rainbow Municipal Water District's (District) conservation -based water rate structure. These rates will be based on the actual water usage of each customer within the District. In addition, appropriate sewage strengths will be incorporated into the District's sewer user rates.
County of San Diego (CA)
Steve prepared integrated financial models for a landmark study for the County of San Diego. The study will not only updating the sewer user, capacity, and annexation fees for the nine dependent sewer districts but will also include the economic analysis of creating one "super sanitation district." Long-range financial plans will be prepared for all of the districts as well as the super district including 10 years of operational and capital costs. I Town of Quartzsite
Steve performed a third -party rate review of a recently completed water and wastewater rate study for the Town of Quartzsite (Town). The Town is concerned with insuring that their winter RV population is paying their fair share of thr.,
Town of Parker (AZ)
Steve updated the Town of Parker's (Town) water rates. One of the Town's main concerns was the fairness and equity of water system cost distribution given the Town's large population of Native Americans who do not pay sales or utility taxes yet benefit from Town parks and other Town amenities. He also helped the Town establish operating and capital reserves.
Walnut Valley Water District (CA)
Steve performed the Walnut Valley Water District's (District) first professional rate study which included updating the rate structure. Steve created a three-tier residential rate structure to hefo decrease discretionary consurn',ution an n JL_ 5 r f
the District avoids or reduces water purchase surcharges from the Metropolitan Water District. He presented his findin!iF to District staff and the District's Board of Directors.
Fallbrook Public Utility District (CA)
With water shortages looming in Southern California, this progressive water and sewer district asked for help creating water conservation -based sewer rates to complement their conservation -based water structure. Steve created rates based on the actual water usage of each customer within the Fallbrook Public Utility District (District). In addition, appropriat4 sewage strengths were incorporated into the District's sewer user rates.
Otay Water District (CA)
The Otay Water District (District) performs an update to their capacity and annexation fees every five years. In this update they changed their capacity fee from an incremental fee based on future costs to a combined fee structure using replacement costs less depreciation. They are also revised their annexation fee to recover taxes and availability charges to recover the expansion costs of their water system. This is a new fee that addresses the issue of new development bringing their own water supply or pay for offsets.
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in the preparation of a drought/shortage rate structure that overlays their new conservation rate structure. This drought rate structure is based on the guidelines provided by the Metropolitan Water District of Southern California and the San Diego County Water Authority.
Rowland Water District (CA)
Steve updated the Rowland Water District's (District) water rates for the second time. The District had several concerns for the most recent study which included a large debt issue for a recycled water system as well as staff increases and wholesale water rate increases. The model helped the district size its debt issue by performing a rate sensitivity analysis to the size of the debt issue.
Olivenhain Municipal Water District (CA)
Steve created a drought rate model to help the Olivenhain Municipal Water District (District) develop a drought rate ordinance. The model calculated commodity rate adjustments for four drou. ry ght sta es. It allowed for customer volunta_ cutbacks in consumption as well as cutbacks due to higher water prices using the price elasticity of water. The model will help ensure the District maintains adequate revenue in times of drought. ! KPR79 3 enpipe =7 71
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The District's residential rates are a flat charge per Equivalent Dwelling Unit (EDU) and the commercial rate structure includes a service charge per EDU and a variable rate based on measured water consumption.
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Steve also prepared valuation calculations for the system capacity required for update of water and wastewater connection and annexation fees for the District. The analysis showed that the District would benefit by changing capacity fee calculation methodologies from a growth method to a combined method, thereby imposing less restrictions on the use of capacity fee revenue.
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water, expanding their water treatment plant and purchasing untreated water from the Metropolitan Water District or partnering with other local agencies to desalinate ocean water. The model contained many variable inputs to allow "what -if" scenario analysis. Although purchasing treated water was the least costly option, the authority favored plant expansion due to other benefits such as reliability of water supply.
City of Poway (CA)
Helix Water District (CA)
Steve created an economic model to add life -line and a water waster tier to the Helix Water District's (District) three-tier rate structure. In addition, budget -based water rates were created for all irrigation accounts. The District is transitioning get-basei, r7tes due to st
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Steve also performed all of the economic modeling in the preparation of the District's first Capacity Fee study. The collect a buv-in Portion based on re-1--ent costs of the District's current water system and City of Anaheim (CA)
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Steve is helping restructure the City of Coronado's wastewater rates from a flat parcel -based fee for residential users to one with a consumption -based charge and a fixed charge.
City of Lemon Grove (CA)
Steve helped update the commercial and residential wastewater rates for the City of Lemon Grove. The rate structur4 included 20 different user classes for residential, commercial, and institutional customers.
Western Municipal Water District (CA)
Steve prepared a long-range financial plan to help ensure the Western Municipal Water District's (District) financial --fict's five -wear CIP. inflationaL-a water rate adustments and reserve,,yolicies._J�ydan show] that a debt issue was needed to execute the CIP and maintain adequate reserves. I Julian and Pine Valley Sanitation Districts (CA)
Steve updated the wastewater rates and connection fees for both sanitation districts. The wastewater fees had not been updated for several years in one district and over 15 years in the other necessitating large rate increases. He developed, -?- few different scenarios which included postponing CIP projects or lowering reserve balances, to ease ratepayers into higher rates.
San Antonio Water System (TX)
Steve prepared a sewer impact fee economic model and study • the City of San Antonio. This included a • •, _tT_QwTR1_�_WrjL, f? k value without d;Z-,vreciation was selected as the basis for the valuation of the System's assets. In addition, an equity residual model was prepared that i--,jrolt Me- Lj_tf MMU741' . . wrinsWu f �_tast and -future debt service 4apments. The stud also analyzed a number • impact fee structures i• determine the most fair and equitable fee.
La Habra ♦i ♦ Water District (CA)
Steve assisted with the update in water user rates, capacity charges, and long-range financial plan for the La Habra Heights County Water District (District). The 2001 study set the District's user rates for five years and expired in 2005� The District had recently completed an updated Water Master Plan and wished to incorporate the new cost of replacement capital facilities for the next 10 years into their long-range financial plan and user rates.
City ♦ La Habra (CA)
Steve helped prepare the City • La Habra's (City) first professional sewer user rate study. This study followed industry standards and an EPA approved rate structure. The City plans to create a formal enterprise fund for their sewer utility to 7u,#pL,;rIg, the long-range financial ylan modeled year-end cash reserves to ensure execution of the City's $21 million capital improvement program and to fund operations and City of Webster (TX)
Steve is constructing a stormwater model for the City of Webster (City). The rates are based on the impervious surface of each parcel. The City plans using water meters to bill customers.
City of Norman •
Wwf Norman. The model is constructed in several differentwam, to allow the city council to choose from alternative rate structures, including the contentious issue of whether or not Oklahoma University, which owns large parcels of impervious surface area, will support the stormwater utility. I Boxelder County (UT)
Steve assisted Boxelder County in the determination of how they will finance their required stormwater improvements.
They plan to create a stormwater utility through diverse funding sources including impact and user fees, a community 1'rti.aireirag i63k&@_?nd grants and loans. The goal of this study was to identify and size a sostern of imEsrrovements which will achieve the greatest defined economic benefit (both local and regional) per dollar • cost, based • the 100-year floodplain extents.
City of Fullerton (CA)
rates for the top 50 industrial water customers in the City of Fullerton.
Blue Plains Wastewater Treatment (DC)
Steve is valuing the largest advanced wastewater treatment plant in the world (370 MGD) using several different valuation methods for Metropolitan Washington Council of Governments. The study values capacity rights in a treatment plant shared by several users. Valuation methodologies include original cost, reproduction cost, and market comparables.
Metro Wastewater Joint Powers Authority (CA)
Steve updated a prior valuation study which values treatment capacity in the San Diego Metropolitan Wastewater System. The valuation study considered several different valuation methodologies including the asset approach, prior sale (market comparables); buyer's avoided cost, seller's potential future cost and alternative investment value.
City of Pico Rivera (CA)
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Town of Parker (AZ)
Steve is performing a benchmarking analysis of the Town of Parker's (Town) water, parks and recreation and streets departments due to efficiency concerns. The study will compare the Town's cost efficiency with other small towns.
Marine Corps Base Camp Pendleton (CA)
Steve led an asset inventory and condition assessment of the water and wastewater systems on Marine Corps Base Camp Pendleton. The inventory included field visits and literature reviews to document and describe the extent and condition of all utility assets. Asset data was compiled in a database and linked to GIS mapping.
Olivenhain Municipal Water District (CA)
Steve developed an economic model that evaluates the cost benefit analysis of four different water supply options including desalinization, increased use of recycled water, and expansion of their existing water treatment plant ujsing� _v.ewdr
the revenue levels necessary to support them.
Confidential Fortune 500 Aerospace Corporation (CA)
Steve created an excel based financial is to cost and budget one of the largest corporate environmental liabilities - nine -mile long plume of rocket fuel -related contamination - underlying several cities in southern California. Remediati strategies were constantly changing and, thus, the model simulated costs for numerous remediation alternatives. The model also allowed for monthly and yearly budgeting and total clean-up expenditures. I Earth Tech (CA)
Steve developed an Operation Excellence Plan to ensure client satisfaction on the execution of a multimillion -dollar Master Services Agreement with a Fortune 500 Aerospace Corporation. The plan provided guidance in many areas satisfaction, program success, and failures.
Otay Water District (CA)
Steve assisted in facilitating performance metric workshops with the Otay Water District management staff. The dozens of Gierformance metriCSr how to calculate them and eventually helped staff narrow down the metrics they believed were best for their utility.
Keweenaw National Historical Park, National Park Service (MI) Steve coauthored a business plan submitted to the U.S. Congress to seek additional funding to expand a national park in Michigan. The business plan included a historical cost accounting analysis of prior fund use and projected future fund needs.
U.S. Army Sudbury Annex Superfund Site (MA)
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research installation in central Massachusetts. Steve oversaw project funds, environmental studies, and construction contracts with consulting firms and partnered with the U.S. EPA to determine clean-up goals and strategies.
PROJECT LOST
• City of Anaheim (CA) - Wastewater rate study
• Boxelder County (CO) - Stormwater funding research
• Blue Plains Wastewater Treatment Plant (DC) - Valuation study • Confidential Fortune 500 Aerospace Corporation (CA) - Strategic remediation. financial planning and analysis • City of Coronado (CA) - Wastewater rate study
• Earth Tech (CA) - Operation excellence plan
• Fallbrook Public Utility District (CA) - Water conservation -based sewer rates • City of Fullerton (CA) - Sewer fee assessment
• Helix Water District (CA) - Conservation based water rates; capacity fee study • Julian and Pine Valley Sanitation Districts (CA) - Wastewater rate study • Keweenaw National Historical Park, National Park Service (MI) - Business plan • City of La Habra (CA) - Sewer rate study and long-range financial plan • La Habra Heights County Water District (CA) - Water user rate study and long-range financial plan • City of Lemon Grove (CA) - Wastewater rate study
• Marine Corps Base Camp Pendleton (CA) - Utility privatization • Metro Wastewater Joint Powers Authority (CA) - Valuation of treatment capacity • City of Norman (OK) - Stormwater rate study
• Olivenhain Municipal Water District (CA) - Drought water rates; wastewater rate update; capacity and annexation fee update; long-term water planning financial model; water supply cost benefit analysis • Otay Water District (CA) - Capacity fees update; water rate structure update and drought phasing plan; performance metrics
• Town of Parker (AZ) - Water rate study; benchmarking and efficiency analysis • City of Pico Rivera (CA) - Valuation of groundwater
• pumping rights
• City of Poway (CA) - Water and wastewater rate models • Town of Quartzsite (AZ) - Third party rate review
• Rainbow Municipal Water District (CA) - Water conservation -based sewer rates • Rowland Water District (CA) - Water rate study
• San Antonio Water System (TX) - Sewer impact fee study • County of San Diego (CA) - Sewer utility rate study
• Sweetwater Authority (CA) - Water rate study
• U.S. Army Sudbury Annex Superfund Site (MA) - Base realignment and closure • Walnut Valley Water District (CA) - Water rate study
• City of Webster (TX) - Stormwater rate study
• Western Municipal Water District (CA) - Long-range financial plan
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Charles Diamond
Senior Consultant
industry standards.
Charles has a background in natural resource economics and water resources management. His expertise lies in financial modeling and data analysis. He •
joined Raftelis initially in 2017 as an associate consultant upon receiving a master's degree from the University of California, Santa Barbara's Bren School of al models
fee studies.
�KEY PROJECT EXPERIENCE
Professional History
Utility
financ
ial
analy
sis
Data
collec
tion &
analy
sis
Statist
ical
analy
sis
City of Ell Monte (CA)
T'4_wiitI *f El a water rate studW. Charles attended meetings with Cip staff, collected and reviewed necessary data for the study, developed a user-friendly five-year financial plan model, and developed a proposed rate schedule over a five-year period. Additionally, Charles developed water shortage rates to be implemented by the City during times of declared water supply shortages. He also developed a Cost Allocation Plan water service to the City's water utility.
Municipal Water District of Orange County (CA)
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charges for the District (which is a wholesale water importer) to recover its costs from its member agencies. Raftelis evaluated the District's existing rate structure and recommended changes as necessary. Charles conducted all technical analysis and prepared deliverables to be presented to District staff and its member agencies. Charles documented the results of the study in a final report to District staff.
Alameda County Water District (CA)
Alameda County Water District (ACWD) engaged Raftelis in 2017 to provide multi -year rate design and financial advisory services. Charles provided ACWD staff with technical support in updating the existing financial plan model tha) Raftelis h?�d develoyed for ACWD's yrevious financial ylan uydate. AddILQnAIl,,,_, Charles designed alternative inclining tiered rates for consideration b_ACWD Board and developed drought rates to be activated during ACWD's varNing drought stages as defined in the agency's Urban Water Management Plan. Charles developed a study report for ACWD staff that outlined the financial plan update and the newly proposed drought rates. Charles also assisted other Raftelis staff in conducting a facility capacity fee study for ACWD during this time.
Antelope Valley -East Kern Water Agency (CA)
The Antelope Valley -East Kern Water Agency (Agency) engaged Raftelis in 2019 to provide an annual update of the
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Antelope Valley State Water Contractors Association (CA) _ Antelope Valley State Water Contractors Association (a. engaged Raftelisto conduct . t: 'I • •, •_ i• r • iif "i `• r . ... ' . `. if � i,'I i ..:' .: . 'Y :: r ' i • 'f. fiA
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Water Project costs incurred by AVSWCA's member agencies. As the lead analyst on the project, Charles developed an Excel -based replacement water assessment model and drafted a study report for AVSWCA staff.
City of Brentwood (CA)
The Citij- of BrentwoodfCity� —en aged Raftelis to conduct a water and wastewater rate stud- 41_Ja_2D.JZ, Raftelis helped the
City evaluate the current water and wastewater utilities' cost -of -service and adjusted rates accordingly. Recently Charles updated r financial plan ir' and performed r i for r Yassisted Cucamonga
City of Dixon
The City of Dixon (City) engaged Raftelis in 2018 to conduct a water rate study to develop updated water rates for the City's water utility. Charles developed r plan ir.:: performed r cost -of -service and developed schedulea five-year of proposed - also assisted in the preparation of presentation f rate workshops
Goleta
record.n 2019 to conduct a water rate stu&)r. Charles d veloved a mull year financial plan model, performed a cost -of -service analysis, and developed a five-year schedule of proposed wate rates as Raftelis' lead analyst on the study. Additionally, Charles prepared presentation materials for meetings with t District's Board of Directors tings and the rate study report and drafted the study report to serve as an administrativ La Caflada Irrigation District
La •• Y IrrigationDengaged Raftelis to conduct a water rate study.1 was [terformed in 2008, Raftelis helped the District evaluate the cost -of -service and adjusted rates accordingly. In 2017, Charles develot,,ed . financial !21an modelfor District to sugnort the financial plan development f2018 to 2027. Charles also recently performed a cost -of -service analysis to assist with the update of the District's rates.
City of Long Beach (CA)
• i_+ - ••.f Raftelis in 2018 to r- - i• an r•r "i financial flan model and wastewater utilities. Raftelis had previously conducted a comprehensive water and wastewater cost -of -service rate study in 0• is the City. Charles developed an updated financial planid•' i be used by City staff in future financial
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roroviding for convenient and flexible scenario analysis. Charles worked with City staff to provide customized model features with specific functionalities based on requests and input from City staff.
Olivenhain Municipal Water District (CA)
As
a member agency of the San Diego County Water Authority (SDCWA), the District provides water service to over V1,1WAS - z - - - . nq,rth,;m San Diego CountTa. Raftelis had conducted the yrevious cost -of -service anal:,,Isis and rate study, for the District in 2014. As part of the rate study effort, Charles developed a new financial plan model for the District's water enterprise, performed a cost -of -service analysis, and developed updated tiered rates based on current customer usage characteristics. Additionally, Charles assisted in redesigning the District's water supply shortage rates, which are activated during periods of reduced water demand in order to recover reduced revenues from volumetric rates.
National Water and Sewerage Authority of Grenada (Eastern Caribbean) T
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with NAWASA staff. Charles worked directly with NAWASA staff to develop and refine model results, and assisted with the development of a study report to document the key results of the study.
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 calculating the District's water capacity fees, developed a water -ted the watercapacitgN
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 develoged a cost -of -service rate model to allocate costs and calculate rates for fiscal ears 2019 and 2020. Charles assisted the rate study report.
Santa Ana Watershed Project Authority (CA)
d Pro;ect Authori Idiami _� �._m�f_y_b-d for the Inland Empire Brine Line, which is a pipeline used to divert non -reclaimable wastewater of high brine content from the upper 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. Charles 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.
Scotts Valley Water District (CA)
The Scotts Valley Water District (District) engaged Raftelis in 2020 to conduct a water cost -of -service study for the District's potable water and recycled water funds. The Study included the development of a five-year financial plan, a 1��Y6A-
water fund. Charles served as lead analyst, conducting all technical analysis and preparing all key deliverables for the study. The proposed rates were successfully adopted by the District's Board of Directors in October 2021.
City of Simi Valley (CA)
The City of Simi Valley (City) engaged Raftelis in 2019 to conduct a water rate study for the City's water utility. The • •'i •. _::ir _ i y • Ycost-of-service analgisis and the develo%menLQfixQtosJ water rates over a five-year period. Charles served as lead analyst and conducted the vast majority of the technical analyses required i • '.
City of Sonoma (CA)
i I • r -. 1 i' i r •• •and analgized account billed water• • I assisted in Thousand
City of Watsonville (CA)
Raftelis was engaged to develop 10-year financial plans for the City of Watsonville's (City) water, wastewater, • solid modelwaste enterprise funds. The goal was to develop a financial plan model that could be used as a financial planning tool to capital projects. Charles assisted with developing a water, wastewater, and solid waste financial plan and cost of service rate part of •',
•
• Alameda County Water District (CA) — Water rate update study • Antelope Valley -East Kern Water Agency (CA) — Water rate update study • Antelope Valley State Water Contractors Association (CA) — Replacement water assessment study • Borrego Water District (CA) — Water affordability assessment • City of Brentwood (CA) — Water and wastewater rate study • Castaic Lake Water Agency (CA) — Facility capacity fee update study • Cucamonga Valley Water District (CA) —Multi-year water and drought rate study • City of Dixon (CA) — Water rate study
• City of El Monte — Water rate study and cost allocation plan • Goleta Water District (CA) — Water rate study
• City of Huntington Beach (CA) — Water rate study update • County of Inyo (CA) — Water rate study
• La Canada Irrigation District (CA) — Water rate study • Las Virenes Municipal Water District (CA) — Water and wastewater rate study • City of Lincoln (CA) — Water rate study
• City of Long Beach (CA) — Water and wastewater financial plan development • Marin Municipal Water District (CA) — Miscellaneous fee study • Mojave Water Agency (CA) — Strategic financial plan
• Municipal Water District of Orange County (CA) — Core service charge allocation study • National Water and Sewerage Authority of Grenada (Eastern Caribbean) — Water and sewer rate study • Olivenhain Municipal Water District (CA) — Water rate study
• Rancho California Water District (CA) — Water capacity fee study • Rancho California Water District (CA) — Water cost of service study • Sacramento Suburban Water District (CA) — Water rate study • Santa Ana Watershed Project Authority (CA) — Inland Empire Brine Line rate model • Santa Rosa Plain, Sonoma Valley, & Petaluma Valley Groundwater Sustainability Agencies (CA) — Groundwater sustainoil lity agency fee analysis and rate setting services • Scotts Valley Water District (CA) — Water and recycled water rate study South Mesa Water Company (CA) — Water rate study and connection fee update • City • Simi Valley (CA) — Water rate study
• City • Sonoma (CA) — Water rate study
• South Mesa Water Company (CA) — Water rate study
• City of Thousand Oaks (CA) — Water financial plan update and wastewater cost • service rate study • City of Thousand Oaks (CA) — Water cost of service and wastewater financial plan update study • City of Ventura (CA) — Water and wastewater rate study • Victor Valley Wastewater Reclamation Authority (CA) — Wastewater rate study and capacity fee study • City of Watsonville (CA) — Water, wastewater, and solid waste rate study
ITTITA-dgwPlown
Senior Consultant
ROLE
Matt will help with the communications components of the project.
UTEGIM
Matt has a 20+ year public relations career serving clients and customers in the public utility, engineering and construction sectors. He excels at designing and implementing strategic communications campaigns that incorporate stakeholder input to inform, advocate and achieve behavior change. His specialty is successfully translating complex subjects and concepts into messages that are easily understood by target audiences. At Raftelis he manages strategic communications planning and implementation, as well as stakeholder engagement initiatives. Prior to joining Raftelis, Matt managed a variety of public affairs efforts at Denver Water, which included designing the public engagement and public information strategies for nearly a billion dollars' worth of infrastructure projects, spearheading the public process for the utility's policy decision regarding Community Water Fluoridation, and led development of processes to gain stakeholder support for preventative maintenance on critical infrastructure. He earned a B.A. in journalism, is Accredited in Public Relations as a Project Management Professional (PMP) from the Project Management Institute. Matt has presented at national conferences including the American Water Works Association's ACE and the City -County Communications and Marketing Association's (3CMA) Annual Conference. Matt's work has earned �frestiqious Gold Pick Awards from the Colorado Chai;o-ter of PRSA and SAVVY Awards from 3CMA.
KEY PROJECT EXPERIENCE
City of Port Hueneme (CA)
the City Council stressed that affordability was a key factor for their approval.
They also stressed the importance of transparency, especially as it related to ensuring the community's significant population of individuals for whom English was not their primary language. As the strategic communications project of Port Huenem-;
(City) that included the development of an infographic that explains the City's rate structure changes, a Proposition 218 notice, and facilitated three public workshops to explain the changes. All materials were translated into Spanish - language versions to enable communication across a potential language barrier.
Im
* Strate
gic
Comm
unicat
ion
planni
ng
* Stake
holder
engag
ement
* Public
involv
ement
* Corn
munit
y
outre
ach
* Prima
ry &
secon
dary
resea
rch
* Exper
t
positi
oning
* Media
relatio
ns
* Social
media
Art
directi
on
Reput
ation
mana
genie
nt
Coaliti
on
buildi
ng
Advoc
acy
camp
aigns
Montecito Water District (CA) Professional History 0 Raftel This coastal community faced the opportunity to reduce its reliance on surface V1,7,ter V,*11rceq tE,7 - - - - - - - lessz-id. less cert.?in due to the effects of climate change and drought. Their solution wa-&-
to switch over to a guaranteed source using a state-of-the-art desalination plant. This change modified the cost structure ance. Matt managed the impilementation of
a strategic communications plan that included development of a variety of communication tools and pieces that effectively made the case for why the changes planned will provide long-term community benefits.
Cucamonga Valley Water District (CA)
The Cucamonga Valley Water District, in California's Inland Empire, was updating its rates and fees to account for a modified pass -through fee for State Water Project water, along with aligning its tiered rate structure to more closely follow the varied costs of different sources of water. In addition, CVWD's financial plan and Capital Investment Plan called for infrastructure upgrades to its aging water infrastructure before costly breaks and outages became more common. Matt coordinated the implementation of a strategic communications and outreach plan that included Q�_�r ��_-ztLQrr_twls such as bill stuffers EAQs a fact sheet/infogoghic,-ELopasitinjL218-notLre -and-loarticippation in -an annual community outreach event.
Crestview -Lake Arrowhead Water Agency (CA)
Crestview -Lake Arrowhead Water Agency (CLAWA) had not had a rate increase in 26 years and needed to ensure compliance with California's Proposition 218 requirements. CLAWA sought specialized assistance communicating the purpose and need for rate increases to customers on a strict implementation timeline. Matt provided strategic communications assistance, including guidance on messaging strategy and tactics.
City of Newport Beach (CA)
The City of Newport Beach (City) Utilities Division provides water service to more than 86,000 people over 50 square miles. A high -income community composed of primarily single-family residential properties, there was significant h-i*r"rwiI iv; ft
as purchasing supplemental water rising by 75% in recent years, the time bad come for action. Matt was on the Raftelis team charged with developing a comprehensive strategic communications plan, messages and communications tools, including a Proposition 218 notice. The effort communicated the great need for infrastructure improvements to ensure continued deliver of high -quality drinking water and water for fire protection. City Council voted to increase rates at the end of 2019.
Denver Water (CO)
In the wake of updated guidelines from the Centers for Disease Control and Prevention regarding management of fluoride levels in drinking water, advocates on either side of the policy issue lobbied Denver Water's Board of Water Commissioners (Commissioners). The utility charged Matt with designing and implementing a public process to provide Commissioners with sufficient information to make a policy decision. Matt brought together local and national experts *_v_LV_ issw--sve, jorts 2jr4-_C*Y.5
strategy that built community awareness about the issues that garnered support for the board's ultimate decision. The I d; If I-e 21 1211 2i
Denver Water's collection system is unbalanced, lacks resiliency and is at -risk to myriad natural disasters including II _ff,.Ltermitti�nV-,yrocess for tht_y��iears, ylans to exvand the c acityofGross Reservoir to help mitigate these risks had grown stagnant while voices of project opponents grew louder. How could Denver Water raise the profile of the nearly $500 million project and gain support from critical stakeholders and customers? How could claims of opponents be effectively rebutted and diffused? How could political support be marshaled and directed to ease the work of permitting entities and oversight authorities? Matt stepped in and became the architect of a multi -layered, multi -faceted advocacy and public information campaign designed to achieve these goals. It included:
• Primary research to gauge support of/opposition to the project, along with identification of top objections from fence sitters and opponents that helped drive key messaging. • Successful lobbying of state and federal elected officials - including then Colorado Governor John Hickenlooper - to go on record supporting the project.
• Recruiting dozens of local governments and major environmental groups to pledge their support and help negate claims by more radical/fringe environmental groups opposing the project. • Launch of stakeholder outreach plan including presentations delivered to civic organizations and creation of a community outreach office built to serve as a truth repository and venue to gather ongoing public input. • Design of a comprehensive proactive media relations campaign that targeted key stakeholders in major media outlets through third -party supporters' letters to the editor, media tours, exclusive interview and meetings with editorial boards.
• Design of robust education campaign delivered via social media campaign that that rebutted common false claims made by project opponents in ways that did not lend them legitimacy by drawing attention to opponents directly.
• Development of a multi -layered online and multimedia presence that delivered compelling messages about the project's purpose and need through rich storytelling, powerful imagery and the use of influential third -party advocates.
Elbert County (CO)
During a recent update of Elbert County's impact fees for Parks/Recreation, Public Facilities, Sheriff, and Transportation, Matt was the strategist behind development of the strategic communications and community outreach plan. It prescribed an extensive stakeholder engagement process featuring interactive online meetings and surveys, which informed the study prior to online work sessions with County Commissioners. County leaders credited this work with the studN and recommendations less controversial and thus more XQIWcally acceptable.
Town of Jackson (WY)
The Town of Jackson, located in Teton County, boasts among the highest incomes of any county in the United States. t'f,?-t is Vie tu&iis?_-vi.% *Etourlv.?,.,td sewice industry jobs that su rt the vibrant tourism indust WTI re-LI
in complications such as the prevalence of seasonal homes that only had seasonal demand and impact on the system.
Matt led the creation of a Technical Advisory Committee made up of representatives from myriad stakeholder groups.
Through a series of meetings facilitated by Matt, the TAC ensured that the recommendation ultimately delivered to the Town Council was representative of the community and included measures for affordability.
Colorado Department of Transportation (CO)
The Colorado Department of Transportation was in a pinch. After many years of costly traffic congestion through the critical 1-70 mountain corridor, funding was secured to conduct the first step in the federal process to conform to requirements set by the National Environmental Protection Act (NEPA). After performing much of the work associated with the Draft Preliminary Environmental Impact Statement (DPEIS), concerns were raised by officials that the process had not sufficiently engaged members of the local low-income and minority communities. NEPA promotes environmental justice by requiring federal agencies to include a proposed pr♦ject! s potential environmental, economic, and public health impacts on low-income, minority, and rural communities. Mr. Witten was charged with designing and irnplerinenf-hg a strate4c eingagemeritpr*cess t* ensyrev#ices friim these -wbien-ei eit otmffiY.Aitics were iAclv4ei the DPEIS. Teaming with partners specializing in multicultural outreach, the program successfully engaged members of this community by approaching with cultural sensitivity and appropriateness. The result was a successful integration of i-eedback from once underrepresented groups and satisfied environmental justice requirements.
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Department's approach to 1ublic involvement. Through primary and secondary research, and by applying public
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1 involvement expertise gamect over years ot practice, tne team e ompreriensive repon, 7TY71MA-fecame frie go - to source on the topic. Feedback from end -users across the state was an incredible validation of the work that was performed. Many had been directed to perform public involvement as part of their individual projects, but there was no prior guidelines for implementation. This report gave important insights, dove deep into practice and provided a solid roadmap to ensure that those most impacted by the Department's work were properly consulted.
Drivers on Interstate 25 between Denver and Fort Collins were fed up. Northbound, the lane count abruptly went from four lanes to two just north of the metro area, creating congestion even during non -peak travel hours. In both directions, road rage was common as aggressive drivers wove in and out of traffic; creating unsafe conditions and frequent accidents that only added time and expense to travelers on this vital thoroughfare. Matt, as part of a consultant team, led community engagement efforts to gather stakeholder input on preferred alternatives to relieve the situation. The team barriers to participation, and these strategies were successful. As a result of the outreach, stakeholders were in a much better position to understand the engineering and likely funding limitations. Members of the project team benefitted from the fresh eyes of stakeholders who were being impacted by the conditions and were able to screen alternatives to those R 111 111111 �111 � 111% OOM
Northern Colorado Water Conservancy District (CO)
Lilk;I,I1&Z7,24-'z-ic�&�Veariencing. excevtional growth, with a yovulation thatiLc&vected to double to a half -million people by 2050. As a key raw water provider to municipalities and agricultural interests, the Northern Colorado Water Conservancy District began plans in the 1980s to provide valuable source water to 15 partners working together to make the Northern Integrated Supply Project a reality. Today, on the cusp of state and federal regulatory approvals, NISP faces opposition from a very small but vocal minority who threaten to derail the public process and stop the project by any means necessary. Millions of dollars, years of planning and thorough environmental study and protections hangs in the balance. Raftelis was hired to assist Northern with development of a comprehensive public outreach and information campaign to ensure continued public support for this critical $1.1 billion project. Matt scowliwf -Fes-2-
benefit most from the project will understand the value it brings and its role to help ensure a continued thriving Denver International Airport South Terminal Redevelopment Program (CO) Commuter rail was finally coming to Denver International Airport (DIA). The question was - how and where would it connect? The good news is the $500 million program was merely a continuation of the original vision for DIA that included a world -class hotel and open-air plaza. The bad news was the multi -year construction - if managed and communicated improperly - would create chaos at one of the nation's busiest travel hubs.
Matt was on the team hired to develop a strategic communications program designed to properly inform a variety of internal and external stakeholder groups; to convey the vision for the program while also communicating valuable coping messages to avoid or mitigate disruption from construction.
Strategic communications included a variety of stakeholder outreach strategies, including convening a Program Advisory Committee to bring together myriad groups and interests, a leading -edge diversity program to promote inclusion and ov
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model for other regional construction projects that must be undertaken while the underlying infrastructure remains in speration.
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City of Wheat Ridge (CO)
Matt was the project manager on the team hired to design and implement a community -based brand identity MWI,beikxmAnt for the Ci[VT of Wheat• 1:Ve i i. The r's existing brand was designed bkt-a high school student in the mid- 1970s and despite the brand's age and dated nature, there were voices in the community opposed to the City's rebranding. Matt designed a process that brought together key community stakeholders using a variety of public engagement techniques to draw out from them their view of what was quintessentially Wheat Ridge. These elements were then distilled down to core themes that were woven into the City's new identity. While there was no consensus on what made Wheat Ridge Wheat Ridge, each group could literally point to an element of the brand and buy -in. to the brand as a whole. The result was a yrocess that members of Cior Council traised as the model for how City staff should encourage public involvement. A post -project survey found that 70 percent of respondents agreed that the new identity represents the City as a positive, progressive community.
Cherokee Denver's Redevelopment of the Old Gates Rubber Factory (CO) An icon (and to some an eyesore) on the Denver skyline since the late- 1 800s, the Gates Rubber Factory was fir dee-.?,des s,?.t en-ffAi,7nd had fallen into disrevair. One reason it remained in such a condition feT so long was Me ■significant environmental contamination tna was preseW Me site Viat Y — 11 1 chemicals into the water table and into surrounding neighborhoods. Cherokee Denver, a developer specializing in brownfield redevelopments, secured the property and began work to revitalize it into a modem mixed -use destination including residential, retail, commercial and public spaces.
Wary of powerful nearby neighborhood groups, Cherokee Denver hired Matt to lead community relations and public engagement activities designed to inform the community of future it and i&orporate public feedback to avoid political hurdles. Through a comprehensive canigaig tua beneficial en of education and outreach. Matt built valuable mu 1LY relationships with community leaders, business interests, homeowner's associations and elected officials. On his recommendation, Cherokee Denver convened the Cherokee Denver Redevelopment Advisory Committee, which consisted of community leaders and some of the project's most outspoken opponents. Through dialogue and relationship support increased. The lyroiect resulted in a develo •ment that was properly remediated environmentally and today the community is one of the most desirable and visited in the area.
PRESENTATIONS
• osolids Communication Toolkit Workshop" Water Environment Federation • "Re -imagining Engagement: Harvesting what we've learned about virtual public engagement for the future" ACE '21 Annual Conference
• "Re -imagining Engagement: Harvesting what we've learned about virtual public engagement for the future" Arizona Water Association 2021 Annual Conference
• "It's Human Nature: Using Social Science to Enhance Your CommunicationsRMSAVVTWA/RMWEA, 2020 • "Ensuring Public Process Legitimacy Through the Lens of The Community Water Fluoridation Issue," AWWA ACE Conference, 2016
PUBLICATIONS
a "Leverage Social Media in Times of Crisis", Article, Journal AWWA, 202f