Agenda — Kingsburg City Council, September 4, 2024 (part 2 of 2)

PRIOR ACTION/REVIEW
Staff provides mid-year reviews of revenues as well as discussion during annual budget development.

BACKGROUND INFORMATION
See Executive Summary.

ATTACHED INFORMATION

1. Bradley Burns Collection Summary

2. Measure E Collection Summary

3. Property Tax, Motor Vehicle Fee, TOT and Licenses, Permits and Fees Collection Summary

CITY OF KINGSBURG
REVENUE COLLECTION REPORT – FISCAL YEAR 23-24
Presentation by: City Manager, Alexander J. Henderson

NON-SALES TAX MAJOR GF REVENUE SOURCE COLLECTION
FY 19/20 – FY 23/24
CITY OF KINGSBURG, CA 2
Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Property Taxes $1,268,261 $1,341,501 $1,403,217 $1,514,948 $1,654,973 Motor Vehicle Fees $1,164,984 $1,185,675 $1,265,202 $1,359,673 $1,508,971 Transient Occupancy $320,245 $349,913 $436,439 $417,970 $401,115 Permits & Fees $1,255,920 $1,275,796 $1,374,760 $920,349 $937,231 Total $4,009,410 $4,152,885 $4,479,619 $4,212,940 $4,502,290 YoY 14.41% 3.58% 7.87% -5.95% 6.87%

MAJOR FUND

REVENUES

1. Bradley Burns Sales Tax and
Tax in Lieu

2. 1% District Tax – Measure E
Public Safety

3. Property Tax Collection

4. Motor Vehicle Fees

5. Transient Occupancy Taxes
(TOT)

6. Licenses, Permits and Fees
CITY OF KINGSBURG, CA 3
18%
30%
19%
17%
5%
11%
Revenues Received as of 08/30/2024
Sales Tax
Measure E Sales Tax
Property Tax Collection
Motor Vehicle Fees
Transient Occupancy Taxes
Licenses, Permit and Fees

BRADLEY BURNS

SALES TAX
CDTFA Collection 2019-20 2020-21 2021-22 2022-23 2023-24 July $91,618 $93,373 $86,641 $92,154 $104,328
August $89,214 $87,436 $108,587 $115,146 $100,864
September $145,569 $132,657 $167,431 $222,439 $158,103
1Q Total $326,401 $313,466 $362,659 $429,738 $363,295
October $63,880 $71,576 $97,414 $108,590 $102,317
November $92,566 $67,930 $109,180 $105,900 $96,950
December $91,657 $173,464 $174,525 $155,559 $171,178
2Q Total $248,103 $312,970 $381,118 $370,049 $370,445
January $105,747 $77,426 $83,751 $103,296 $107,870
February $85,802 $72,448 $83,365 $98,734 $88,308
March $79,804 $103,742 $214,357 $186,586 $234,597
3Q Total $271,352 $253,617 $381,472 $388,617 $430,776
April $70,895 $107,993 $100,265 $96,017 $97,071
May $89,101 $88,023 $136,509 $112,333 $135,340
June $161,705 $177,131 $177,411 $167,001 $176,552
4Q Total $321,701 $373,147 $414,185 $375,350 $408,963
Total $1,167,557 $1,253,199 $1,539,434 $1,563,755 $1,573,479 Annual Variance -9.54% 7.34% 22.84% 1.58% 0.62%
FY 19/20 – FY 23/24
CITY OF KINGSBURG, CA 20XX 4
CITY OF KINGSBURG, CA 5
July August September October November December January February March April May June FY2020 $91,618 $89,214 $145,569 $63,880 $92,566 $91,657 $105,747 $85,802 $79,804 $70,895 $89,101 $161,705 FY2021 $93,373 $87,436 $132,657 $71,576 $67,930 $173,464 $77,426 $72,448 $103,742 $107,993 $88,023 $177,131 FY2022 $86,641 $108,587 $167,431 $97,414 $109,180 $174,525 $83,751 $83,365 $214,357 $100,265 $136,509 $177,411 FY2023 $92,154 $115,146 $222,439 $108,590 $105,900 $155,559 $103,296 $98,734 $186,586 $96,017 $112,333 $167,001 FY2024 $104,328 $100,864 $158,103 $102,317 $96,950 $171,178 $107,870 $88,308 $234,597 $97,071 $135,340 $176,552 $0
$50,000
$100,000
$150,000
$200,000
$250,000
BRADLEY BURNS SALES TAX:

REVENUE BY MONTH

PUBLIC SAFETY

SALES TAX -

MEASURE E
CDTFA Collection 2019-20 2020-21 2021-22 2022-23 2023-24 July $103,484 $152,478 $177,164 $181,214 $191,005
August $115,196 $159,642 $202,636 $189,059 $189,707
September $293,452 $262,847 $263,444 $299,783 $309,196
1Q Total $512,132 $574,967 $643,245 $670,056 $689,908
October $97,449 $123,991 $172,945 $187,168 $169,394
November $122,930 $130,010 $181,573 $177,827 $176,002
December $251,012 $300,301 $285,611 $314,793 $311,516
2Q Total $471,391 $554,302 $640,129 $679,788 $656,913
January $119,432 $129,781 $168,942 $184,830 $194,714
February $109,049 $141,919 $179,202 $187,745 $184,786
March $161,074 $261,800 $348,184 $299,491 $269,349
3Q Total $389,556 $533,500 $696,329 $672,066 $648,849
April $113,875 $203,883 $185,241 $193,934 $170,697
May $152,480 $200,313 $210,825 $223,320 $202,940
June $260,529 $246,098 $379,948 $237,798 $268,397
4Q Total $526,884 $650,293 $776,015 $655,051 $642,033
Total $1,899,962 $2,313,063 $2,755,717 $2,676,961 $2,637,703 Annual Variance 66.07% 21.74% 19.14% -2.86% -1.47%
FY 19/20 – FY 23/24
CITY OF KINGSBURG, CA 20XX 6
July August September October November December January February March April May June FY2020 $103,484 $115,196 $293,452 $97,449 $122,930 $251,012 $119,432 $109,049 $161,074 $113,875 $152,480 $260,529 FY2021 $152,478 $159,642 $262,847 $123,991 $130,010 $300,301 $129,781 $141,919 $261,800 $203,883 $200,313 $246,098 FY2022 $177,164 $202,636 $263,444 $172,945 $181,573 $285,611 $168,942 $179,202 $348,184 $185,241 $210,825 $379,948 FY2023 $181,214 $189,059 $299,783 $187,168 $177,827 $314,793 $184,830 $187,745 $299,491 $193,934 $223,320 $237,798 FY2024 $191,005 $189,707 $309,196 $169,394 $176,002 $311,516 $194,714 $184,786 $269,349 $170,697 $202,940 $268,397 $0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
MEASURE E: REVENUE BY MONTH

ALL REVENUES YEARLY COMPARISON
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Bradley Burns Sales
Tax/Tax in Lieu
Measure E Sales Tax Property Tax Collection Motor Vehicle Fees Transient Occupancy Taxes
Licenses, Permit and Fees
FY 21/22 FY 22/23 FY23/24
CITY OF KINGSBURG, CA 2022 8
QUESTIONS?
CITY OF KINGSBURG, CA 2022 9

CITY COUNCIL STAFF REPORT
REPORT TO: Mayor Pursell Jr. & City Council
REPORT FROM: Christina Windover, Assistant City Manager REVIEWED BY: AJH AGENDA ITEM: City Council Compensation
ACTION REQUESTED: ___Ordinance ___Resolution _ Motion ___Receive/File

EXECUTIVE SUMMARY
While salaries for Councilmembers have been adjusted over time, there has not been an update since October 2002. The rate, set in 2002, of $200 per month for Councilmembers was still $100 per month below what State law would have allowed Kingsburg to adopt as a General law city in 1984. A summary of comparative salaries for councilmembers of neighboring jurisdictions is included in your packet.

Recently, the California League of Cities sponsored a bill, Senate Bill 329, which is applicable to General Law cities (Kingsburg became a Charter City in 1998) that identified relevant reasoning for providing fair city councilmember compensation.

Namely, State Senator Dodd (who is the author of SB 329) wrote in introducing the bill:
“City Councilmembers have one of the hardest jobs in California government. They deal with a wide range of issues, from street maintenance to emergency response duties. And all too often, they do this job with very little financial compensation. No one runs for City Council in order to make money. But the low levels of pay make it much harder for them to balance their careers and personal obligations with the calling to serve their community. The Legislature has not raised the base pay amounts for City Councilmembers since 1984. It's time those amounts caught up to the present economic reality, especially with the rapid increase in inflation we've seen recently. Raising the pay will also make it easier for members of marginalized communities to serve. City Councils should be reflective of the communities they represent and I believe raising their compensation is an important step to achieving that equitable outcome." On June 29, 2023, Governor Newsom signed Senate Bill 329 (SB 329). The bill allows cities a one-time opportunity to “reset” city council salaries to take into account inflation, the work done by local government officials, and the need to ensure that people are not discouraged from seeking city office due to the low pay and high demands of that office. The salary increases, or "reset" is based on each cities' population size.

Pursuant to SB 329, the new base pay amount for City Councilmembers in cities with populations up to 35,000 can be up to $950 per month. That works out to up to $11,400 per year per City Councilmember, which would be an annual total of $57,000 inclusive of all five City Councilmember salaries.

While Kingsburg, as a Charter city, is not beholden to SB329, the reasoning and purpose of the bill is still relevant. As such, staff presented this information to the Finance Committee on August 19, 2024 and the Committee made the recommendation to bring this discussion to the City Council. Staff is seeking the direction from Council.

Meeting Date: 09/04/2024
Agenda Item: 9

1. Direct staff to prepare an ordinance to update City Councilmember compensation, which would take effect for all City Councilmembers when the next City Councilmember takes office (e.g., following the November 2024 election).

2. Provide no direction to staff, in which case staff will not prepare an item for further City Council consideration.

3. Direct staff to provide more information at the next Council meeting on September 18, 2024.

If Council chooses to adjust their salaries beginning in January 2025, staff will need to prepare an ordinance for the first reading of the ordinance on/by October 2, 2024 and have a second reading on the November 6, 2024 meeting.

RECOMMENDED ACTION BY CITY COUNCIL

1. Discussion. Staff is seeking direction.

POLICY ALTERNATIVE(S)

1. N/A

REASON FOR RECOMMENDATION/KEY METRIC

1. Financial Stability

2. Preserve the Kingsburg Experience

FINANCIAL INFORMATION

PRIOR ACTION/REVIEW
Compensation for Councilmembers has been adjusted periodically since 1966. The last update was completed in 2002. A complete summary of actions to date is included as part of Ordinance No. 2002-03.

BACKGROUND INFORMATION
Article II, Section 2.06 of the Kingsburg City Charter provides guidance regarding City Council Compensation and Expenses.

Section 2.06. - City Council Compensation and Expenses
The compensation and expenses of the Council shall be in accordance with State law and the provisions of this Charter.

A. City Council to Determine. The City Council may determine the salary and compensation of the Mayor, Mayor Pro Tem, and Councilmembers by ordinance, but no ordinance increasing such salary or compensation shall become effective until the commencement of the terms of Councilmembers elected at the next regular Council election.

B. Expense Reimbursement. The Mayor, Mayor Pro Tem and Councilmembers shall receive reimbursement for their actual and necessary expenses incurred in the performance of their duties of office, such reimbursement to be made pursuant to a schedule of expenses adopted by the Council by resolution, which schedule shall be applicable uniformly to the Council and all City employees and officers.
.

FISCAL IMPACT:

1. Is There A Fiscal Impact? Potentially

2. Is it Currently Budgeted? N/A

3. If Budgeted, Which Line? N/A

ATTACHMENTS

1. Council Compensation Study

2. Ordinance No. 2002-03

3. Council Increase Memo
City Monthly Stipend CCM/Mayor
Corcoran $0.00
Tulare $5 regular meeting
Porterville $20/$25 regular meeting-max $140
Reedley $150.00
Fowler $150.00
Kerman $125 regular meeting + $50 special mts
Kingsburg $250/$300
Dinuba $300.00
Selma $300.00
Sanger $300/*$400 auto allowance
Chowchilla $300.00
Coalinga $450.00
Hanford $500.00
Parlier $500.00
Clovis $1,513.00

Date:

To:

From:

MEMO
January 4,2007
Grace Reyna
Don Jenseq Finance Dire,ctor
Subject: Council Members compensation
As ofthe January chech paid by Jan 10ft 2007 eaphcouncilman's pay shall be $250 per month. The mayors compensation remains at $300 per month. This change is per the 06-07 budget to take place after the council reorganization of December 2006.

The next payroll due by February rcth 2007 shall include the raise and a $50 retro payment forthe 4 councilmen.
,o1
n.b d

CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Pursell Jr. & City Council
REPORT FROM: Daniel Galvez, Public Works Director REVIEWED BY: AJH AGENDA ITEM: 2024 Water Rate Study Request for Proposals ACTION REQUESTED: ___Ordinance ___Resolution ____Motion ____Receive/File

EXECUTIVE SUMMARY
The City recently solicited proposals from qualified firms to conduct a Water Rate Study to assist in determining how the City funds the administration, operation, maintenance and capital replacement and improvement of its water system. After receiving direction from the Finance Committee, staff released the water rates study RFP (final version included) on July 2, 2024. Proposals were received until July 31, 2024. There was one proposal received from the firm of Lechowicz & Tseng, Municipal Consultants. This is the same firm the city utilized for our most recent solid waste rate study, conducted in 2022. The Finance Committee reviewed the proposal from L&T on August 17, 2024, and recommended approving the RFP as written.

L&T are well versed in providing water rate studies, having done them for the Central Valley Cities of Kerman, Hanford and Wasco. They are also currently conducting four rate study for different Fresno County service areas, and have been contracted to work with Groundwater Sustainability Agencies as well.

Staff is recommending the Council recommend finalizing an agreement with L&T for approval. Ultimately, the study will align with our requests for proposal, and will evaluate all current water rates, system revenue generation and full cost recovery. The study will provide recommendations for revenue structures that will comply with all federal, state and local regulations, and will meet all debt-service requirements.

The rate study shall include the following:
• A detailed cost-of-service analysis.
• A determination of current and future revenue needed to provide water services. • An assessment of the existing customer service fee structure. • An exploration of various options for changes to the rate structure such as meter fees, conservation fees, bulk water usage, etc.
• Recommendations for methods of communication utility costs to ratepayers.

L&T has provided a proposed schedule to the rate study, to be completed by July 1, 2025. This would include the potential for any Proposition 218 work, should the study determine it necessary. L&T anticipate a draft rate study would be available for review by December 2024. They also propose four (4) in-person meetings throughout the process, including with the Finance Committee and City Council.

The proposed budget for the project is $29,840, which is authorized as part of the city’s adopted FY2025 Capital Improvement Budget. Both the Finance Committee and City Council would review the proposals, including any awarding of potential contracts for services.

RECOMMENDED ACTION BY THE CITY COUNCIL
Meeting Date: 09/04/2024
Agenda Item: 10

Page 2 of 2 ends

1. Staff recommends that the City Council authorize the City Manager to complete negotiates and execute the City’s Standard Agreement for Professional Services for the 2024 Water Rate Study in accordance with the term and conditions of the Lechowicz & Tseng Proposal dated July 31, 2024 and the draft Proposed Agreement attached to this Staff Report.

POLICY ALTERNATIVE(S)

1. Provide alternative direction to staff.

STRATEGIC GOAL(S) MET:

1. Public Safety

2. Preserve the Kingsburg Experience

FINANCIAL INFORMATION

PRIOR ACTION/REVIEW
Prior Action as needed.

BACKGROUND INFORMATION
The City is an Urban water supplier to approximately 4,000 connections. The system is supplied by 7 groundwater wells located within the City limits and uses a grid water main system to deliver to its customers. The City produces and treats water based on short-term water demand. The City chlorinates at each of our well sites and has Granular Activated Carbon treatment at two well locations to continue providing water supplies that meet current potable water standards. The Public Water System has sufficient redundancy to allow for wells and other facilities to be taken offline as needed for maintenance or repairs. Wellhead groundwater treatment facilities have been installed where necessary.

The City completed a 2020 Urban Water Management Plan and water system model update in 2022. The City currently has 1,823 acres of developed land and will impact another 1,411 acres in building out to its current General Plan limits. The model anticipates the City will need to build another 3 (at minimum) new wells as development is completed.

ATTACHED INFORMATION

1. Proposed Draft Agreement

2. Lechowicz & Tseng Response

3. Final Request for Proposal
FISCAL IMPACT:

1. Is There A Fiscal Impact? Yes

2. Is it Currently Budgeted? Yes

3. If Budgeted, Which Line? 318 – Water Enterprise
Draft: 20204-08-28

AGREEMENT FOR

PROFESSIONAL SERVICES
FOR

WATER RATE STUDY
This Agreement for Professional Services For Water Rate Study (“Agreement”) is made and entered into this ____ day of September, 2024, by and between the City of Kingsburg, a Charter City (“City”), and Lechowicz & Tseng Municipal Consultants, LLC, a California limited liability company (“Consultant”).

RECITALS
A. Consultant represents to City that it possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

B. City desires to retain Consultant to render the professional services as set forth in this Agreement.

NOW THEREFORE, in consideration of the mutual covenants set forth herein for such other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

1. Retention of Consultant. Subject to the terms and conditions set forth herein, City retains Consultant to perform the services identified in this Agreement, as an independent contractor and Consultant hereby accepts this independent contractor appointment.

2. Scope of Services. The Consultant shall perform the services described as Tasks in the Scope of Work, attached hereto and made a part hereof and identified as Exhibit “A”, in accordance with all the provisions of this Agreement. Exhibit “A” may be amended from time to time as agreed, in writing, by City and Consultant. All of the services identified in the Scope of Work listed below shall hereinafter be collectively referred to as “Services”. Consultant shall correct any and all errors and/or omissions in the performance of the Services and any documents resulting therefrom even though City has accepted said Services or documents. Such corrections shall be made by Consultant upon City’s request and at no cost or expense to City.

3. Time of Performance. The Services of Consultant are to commence upon execution of this Agreement and shall continue until all authorized work is approved by the City. All such work shall be completed no later than July 1, 2025. Consultant shall provide City a draft Rate Study in December 2024 and the final Rate Study in March, 2025.

4. Compensation. Compensation to be paid to Consultant shall not exceed $29,840.00 without additional written authorization from City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.

5. Method of Payment. Consultant shall submit monthly billings to City describing the work performed during the preceding month. Consultant’s bills shall include a brief description of the Services performed and the date the Services were performed the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Consultant no later 2 than 60 days after the date of submittal of a complete invoice for completed tasks and approval of the invoice by City staff. When payments made by City equal 90% of the maximum fee provided for in this Agreement, no further payments shall be made until all services under this Agreement has been accepted by City.

6. Extra Work. At any time during the term of this Agreement, City may request that Consultant 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 Services, but which the parties did not reasonably anticipate would be necessary on the date of execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from City.

7. Termination. This Agreement may be terminated by the City without cause upon ten (10) days’ written notice of termination to Consultant. Upon termination, Consultant shall be entitled to compensation for Services performed up to the effective date of termination, unless this Agreement is terminated for cause, in which case, City may withhold compensation due Consultant in order to reimburse City for any losses, damages or expenses caused by Consultant’s default under this Agreement.

8. Ownership of Documents. All plans, studies, documents and other writings and electronic disks containing drawings prepared by and for Consultant, its officers, employees and agents in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party.

Consultant shall, at Consultant’s expense, provide such reports, plans, studies, documents and other writings to City upon written request.

9. Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to 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 electronic or otherwise recorded on computer diskettes which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purpose intended by this Agreement shall be at City’s sole risk.

10. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & 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 under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the Services under this Agreement. 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, insignia, photographs, or the project for which Consultant’s Services are rendered, or any publicity pertaining to the Consultant’s Services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent by City.
3 11. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, 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 City’s programs or guidelines currently in effect or hereinafter enacted regarding equal opportunity employment.

12. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies. i. Workers Compensation Coverage. Consultant shall maintain Worker’s Compensation Insurance or Employer’s Liability Insurance for its employees in accordance with the laws of the State of California. Any notice of cancellation, non-payment of premium, non-renewal or modification of any Workers’ compensation policies must be received by the City at least ten (10) days prior to such cancellation, non-renewal or modification. The insurer shall agree to waive all rights of subrogation against City, its officials, officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit identified in this paragraph. iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the Services to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services under this Agreement, whether such Services be by the Consultant or by its employees. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a combined single-limit per occurrence basis.
b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best’s rating of no less than A:VII and which are licensed to conduct business in California, and shall be endorsed with the following specific language:
i. The City, its elected or appointed officers, officials, employees, agents and volunteers shall be covered as additional insureds on all such policies of insurance with respect to liability arising out of Services performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such Services or operations. 4 ii. These policies of insurance shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers.

Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with the policies of insurance obtained by Consultant.
iii. These policies of insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees, or volunteers. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
vi. The insurance provided by these policies shall not be suspended, voided, canceled, modified or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
vii. The general liability insurance coverage shall be at least as broad as Insurance Services Office commercial general liability coverage (occurrence form CG0001 1188).

The automobile liability insurance coverage shall be at least as broad as Insurance Services Office form number CA 0001 0692 Code 1 (any auto).
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City’s option, Consultant shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance. Consultant shall provide certificates of insurance and amendatory endorsements affecting coverage to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on the date of execution of this Agreement by Consultant. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. City reserves the right to require and Consultant shall provide within five (5) days of City’s request, complete certified copies of all insurance policies and endorsements affecting coverage which are required by this Agreement.

13. Indemnification. Consultant agrees to indemnify, defend and hold harmless the City and its officials, officers, employees, agents and volunteers from and against all claims, demands, actions, injuries, liabilities, losses, costs or damages, direct or indirect, and any and all attorneys fees and other expenses which City or its officials, officers, employees, agents or volunteers may sustain or incur as a consequence of or anyway related to Consultant, or its employees and agents performance of the Services and Consultant’s responsibilities and obligations to be performed under this Agreement or its failure to perform or comply with any of its obligations or responsibilities contained in this Agreement. This indemnification shall survive the termination of this Agreement.

14. Independent Contractor Status. It is understood and agreed that Consultant, in the performance of the Services to be performed pursuant to this Agreement, shall act as and be an independent contractor and shall not act as an agent or employee of City. Consultant shall 5 obtain no retirement benefits or other benefits which accrue to City’s employees and Consultant hereby expressly waives any claim it may have to any such rights. Nothing in this Agreement shall create or be construed as creating a partnership, joint venture or any other relationship between City and Consultant.

15. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City. Copies of such documents shall be provided to the City for inspection at the City offices.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request, require that custody of the records be given to the City and that the records and documents be maintained in the City offices. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

16. Interest of Consultant. Consultant (including principals, associates and employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s Services hereunder. Consultant further covenants and represents that in the performance of the Services hereunder, no person having any such interest shall perform any Services under this Agreement.

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. will conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring; and b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. FPPC Reg.18700(aX2).)

17. Professional Ability of Consultant. City has relied upon Consultant’s representations regarding its training and ability to perform the Services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled personnel to perform all Services under this Agreement. The primary provider of the Services 6 called for by this Agreement shall be Alison Lechowicz, who shall not be replaced without the written consent of the City. All work performed by Consultant under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent persons in Consultant’s field of expertise.

18. Compliance with Laws. Consultant shall use the proper standard of care in performing the Services and shall comply with all applicable federal, state and local laws, codes, ordinances and regulations. In addition, if the request for proposal to provide professional services which are the subject of this Agreement cited any federal or state financial assistance involved in the project for which the Services are provided, the Consultant shall perform all services in accordance with all applicable federal and state laws, rates and regulations.

19. Licenses. Consultant represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to lawfully and competently perform the Services. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Consultant to lawfully and competently perform the Services. Consultant shall maintain a City of Kingsburg business license.

20. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement are not permitted. Consultant shall not subcontract any portion of the Services to be performed under this Agreement.

21. Attorneys’ Fees. If an action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other reasonable relief to which he may be entitled. With respect to any suit, action or proceeding arising out of or related to this Agreement, or the documentation related hereto, the parties hereby submit to the jurisdiction and venue of the Superior, in the County of Fresno, State of California for any proceeding arising hereunder.

22. Sole and Only Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the matters set forth herein and contains all of the covenants and agreements between the parties regarding said matters. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or in writing, have been made by any party or anyone acting on behalf of any party which are not embodied in this Agreement and no other agreement, statement or promise shall be valid or binding.

23. Invalidity. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.

24. Amendment. No change, amendment or modification of this Agreement shall be valid unless the same be in writing and signed by the parties hereto.

25. Governing Law. This Agreement shall be construed and governed pursuant to the laws of the State of California.

7 26. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

27. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and shall divide the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS/ENDISPUTE (“JAMS”) or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators.

Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.

28. Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or result from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

29. Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its 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 to bind each respective party.

30. Notice. Any notice, consent, authorization, or other communication to be given hereunder shall be in writing and shall be deemed duly given and received when delivered personally, when transmitted by facsimile or e-mail if receipt is verified, one (1) business day after being deposited for next-day delivery with a nationally recognized overnight delivery service, or three (3) business days after being mailed by first class mail, charges and postage prepaid, properly addressed to the party to receive such notice at the last address furnished for such purpose by the party to whom notice is directed and addressed as follows:

City of Kingsburg Lechowicz & Tseng Municipal Consultants 1401 Draper Street 909 Marina Village Parkway, #135
Kingsburg, CA 93631 Alameda, CA 94501
Attn: Daniel Galvez, Public Works Director Attn: Alison Lechowicz, Principal Email: [email protected] Email: [email protected]

31. Counterparts. This Agreement may be executed in multiple counterparts, (including copies sent to a party by facsimile transmission or email transmission in PDF form), each of which shall be deemed an original, but all of which together, shall constitute one and the same instrument.
8 IN WITNESS WHEREOF, the parties have executed this Agreement effective on the day and in the year first set forth above.

CITY OF KINGSBURG,
a Charter City
By:__________________________________
Alexander J. Henderson, City Manager

LECHOWICZ & TSENG MUNICIPAL CONSULTANTS, LLC,
a California limited liability company
By: ___________________________________
Alison Lechowicz, Chief Executive Officer
ATTEST:
____________________________________
Abigail Palsgaard, City Clerk
11140 – 267/Solid Waste Increase 2024/Professional Agreement (DRAFT) 2024-08-29 9 EXHIBIT “A”

SCOPE OF WORK
10 EXHIBIT “A”

CONTINUED

July 31, 2024
Proposal for a
Water Rate Study Report

CITY OF KINGSBURG
909 Marina Village Parkway #135 | Alameda, CA 94501 (510) 545-3182

July 31, 2024
Daniel Galvez, Public Works Director
City of Kingsburg
[email protected]
559-897-1066
Dear Daniel,
Lechowicz & Tseng Municipal Consultants (L&T) is pleased to submit a proposal for a Water Rate Study Report for the City of Kingsburg (City). We enjoyed working with the City to complete the Solid Waste and Street Sweeping Rate Study in 2022 and appreciate the potential opportunity to work with you again. As demonstrated in our prior engagement with the City of Kingsburg, L&T strives to be flexible, thoughtful, and deliver comprehensive services on time and on budget. Our vision for the water rate study is to modernize the City’s tiered rate structure while fully vetting the cost of service with input from City Council and the Finance Committee.

Although you know our firm as solid waste rate consultants, L&T has a wide range of experience conducting water rate and fee studies for Central Valley agencies. Recent assignments include studies for the Cities of Kerman, Hanford, and Wasco, and the Root Creek Water District (Madera County). We are conducting four water rate studies for Fresno County Service Areas: Millerton New Town (#34), Mile High (#37), Shaver Springs (#40), and Monte Verdi Estates (#44D). We have also conducted financial modeling work for the Fresno Irrigation District. In addition, L&T conducted rate, fee, and/or Proposition 218 outreach activities for groundwater sustainability agencies in your region including the Kings River East GSA (Fresno and Tulare Counties), the McMullin Area GSA (Fresno County), and the South Fork Kings GSA. We understand how cities and GSAs work together to manage groundwater recharge and share costs. L&T will bring our experience from these projects to our work for the City.

We acknowledge the administrative burden of a rate study on agency staff and strive to develop practical recommendations that are easy to understand and easy to implement. To provide a comprehensive analysis, L&T will focus on the following:
o Financial Analysis: We understand that the City’s water rates have not increased since 2019.

Our study will analyze revenue streams to meet immediate cash flow needs as well as plan for future capital projects, deferred maintenance, expenses for the Groundwater Sustainability Plan, and accumulation of appropriate reserves. We will provide the City with a dashboard of financial variables that will clearly illustrate how various considerations, such as grant vs. loan funding, funding capital needs, and high vs. low inflation among others affect the bottom line. We will also conduct detailed reviews of debt obligations and debt capacity. L&T will provide financing 909 Marina Village Parkway #135
Alameda CA 94501
(510) 545-3182
LTmuniconsultants.com
alternatives for funding upcoming capital costs. Our final report will provide the City with a financial roadmap that fully documents the cost of service. o Water Rate Design: L&T will ensure the City’s rate structure achieves compliance with conservation mandates (SB 606/AB 1668) and Proposition 218 proportionality requirements.

Key aspects of rate design for the study will be to determine cost recovery from fixed and volume rates. L&T will clearly document fixed and variable costs and how these costs can be recovered from base charges and volume rates. Our analysis will clearly demonstrate how the City’s rates are proportional to how customers take service. We will also provide alternatives for the current tiered rate structure and demonstrate the impacts to customers. o Public Outreach: Public outreach and education will be critical in gaining public acceptance.

We provide value to our clients by taking the lead in data collection, analysis, and outreach. L&T has extensive experience drafting Proposition 218 notices, educating public officials, and explaining the need for rate adjustments. Our approach is to understand any “hot button” issues in local service areas and respect political sensitivities. Our final documents will stress the value of the City’s infrastructure, explain why costs are increasing, and describe cost saving measures.

We are happy to lead public workshops to review alternatives and gain community input. In particular, L&T will lead Finance Committee meetings and remain flexible to revise our recommendations.

We very much enjoyed working with the City in the past, and we hope this proposal will constitute a suitable basis for our selection. If you have any questions, please contact us.

Sincerely,
Lechowicz & Tseng Municipal Consultants
Alison Lechowicz, Principal and Authorized Representative 909 Marina Village Parkway #135
Alameda, CA 94501
Office: 510-545-3182
Cell: 209-747-3106
[email protected]
Executive Summary .......................................................................................................... 1 Project Description ........................................................................................................... 2 Project Overview .......................................................................................................................................................... 2 Scope of Services ........................................................................................................................................................... 2 Deliverables .................................................................................................................................................................... 3 Identification of Firm ........................................................................................................ 4 Project Contact Person ............................................................................................................................................... 4 Services ............................................................................................................................................................................ 5 Organizational Chart .................................................................................................................................................... 5 Project Organization & Project Team ............................................................................ 6 Project Team .................................................................................................................................................................. 6 Project Management Approach ................................................................................................................................. 7 Requested Interaction with City ............................................................................................................................... 7 Schedule ........................................................................................................................................................................... 8 Meetings........................................................................................................................................................................... 8 Workload ........................................................................................................................................................................ 8 Past Experience ................................................................................................................. 9 Experience with Similar Agencies ............................................................................................................................ 10 Proposed Fee ................................................................................................................... 11 Budget ............................................................................................................................................................................ 11 Billing Rate Schedule 2024/25 .................................................................................................................................. 11 Exceptions to this RFP .................................................................................................... 12 ATTACHMENT A: Resumes

TABLE OF CONTENTS

1 Lechowicz & Tseng Municipal Consultants (L&T) is a women-owned utility rate and financial consulting firm located in the Bay Area. We have three staff members – two principals and one financial analyst. Our principals each have 17 years of consulting experience, worked together at another firm before founding L&T, and have completed over 100 studies. We enjoy working with smaller agencies and the majority of our clients serve populations of 30,000 or fewer. L&T understands the administrative challenges of implementing a rate study and can guide you through each step. We remain flexible to take on additional tasks to meet your needs throughout the study.

This proposal includes a summary of our proposed approach to the Water Rate Study as well as highlights how our prior experience makes us uniquely qualified to support the City. Provided below are descriptions of key aspects of our work.

Financial Planning
Our approach to financial planning will be to adjust rates to keep up with inflationary cost increases, ensure funding is available for capital projects, meet debt coverage requirements, and maintain prudent reserves. L&T will provide cash flow analysis in an Excel-based financial model fed by a financial dashboard showing how each of these factors impacts the City’s bottom line. The study will evaluate various scenarios to fund the multi-year capital programs, ranging from a “bare bones” option that only includes critical improvements to a fully funded scenario that includes all proposed projects.

Rate Design
The City’s current water rate structure includes a base water allotment of 11,000 gallons in the monthly base service charge. Subsequent to the San Juan Capistrano court case, volume rates, tiered pricing, and conservation rates are under increased scrutiny in California. Agencies may no longer adopt usage rates to meet conservation objectives without a supporting cost analysis. At the same time, SB 606 and AB 1668 require water purveyors to gradually reduce indoor, residential water use. L&T will guide the City through compliance with these regulations and will ensure the City’s water usage rates meet Proposition 218 proportionality requirements. We recently completed water rate studies for the Calaveras Public Utility District, City of Wasco, and districts served by Lake County to eliminate or reduce their base allotments. Our proposed tiered rate structure will likely link each tier to a source of water (groundwater or surface water) as well as to consumption levels distinguished by cost such as indoor efficient use, average day use, and peak use.

Public Outreach
Early in the study, we will work with staff to identify targeted dates for public presentations and the Proposition 218 hearing. L&T proposes to manage the public approval process to hopefully gain broad ratepayer support, engage the public early, and streamline the Proposition 218 hearing. Our approach is to understand any “hot button” issues in your local service area and respect political sensitivities. As examples, Alison Lechowicz has recently conducted successful public workshops for the Calaveras Public Utility District and the Christian Valley Park Community Services District.

EXECUTIVE SUMMARY
2 PROJECT OVERVIEW
Meeting the cost of service and funding infrastructure needs is the fundamental goal of the water rate study. L&T’s objective for this rate study is to provide compliance with legal requirements while ensuring the City’s long-term financial viability. We are proponents of simplicity and respecting the current financial and political climate. We understand that the City’s water system is operating efficiently but will begin a multi-year capital improvement program to replace deficient water lines and to upgrade the overall system. Additionally, as a member of the South Kings Groundwater Sustainability Agency (SKGSA), the City needs to ensure that its share of the Groundwater Sustainability Plan is fully funded. As the Proposition 218 consultant for the nearby South Fork Kings GSA (Tulare Lake Subbasin), we are aware of sustainability challenges in your area and the cost sharing obligations of urban and rural pumpers. The City of Kingsburg will need future rate increases to fund the comprehensive cost of providing service.

Our approach to the Water Rate Study is to provide practical advice that is easy to administer. L&T will provide a comprehensive financial plan that projects the City’s overhead, operating, and capital expenses over the next ten years. We will provide sensitivity analysis to estimate costs in both drought and normal year conditions. Our intent is to maintain longterm financial stewardship of the City while minimizing the impact on customers.

SCOPE OF SERVICES
L&T reviewed the City’s required scope of services and agrees to provide all work-products. The following includes a summary of the study’s proposed tasks:

Task 100 – Project Management & Data Gathering
Assemble the necessary data to complete the study. The goal is to understand the City’s financial standing, current rate structure, and utility billing information. A data needs list will be provided to City staff prior to a kickoff meeting. Project management shall extend throughout the study and include:
o Coordination of meetings - scheduling meetings, setting agendas, determining action items, and distributing meeting minutes
o Maintaining the schedule - reviewing and monitoring the project schedule to ensure that milestones are met
o Preparation of progress reports - preparation and submittal of progress reports describing each month’s achievements and hours worked. Our reports will include a tally of number of total hours worked per team member and % of project completed.

Task 200 – Revenue Requirements
Develop cash flows and cost of service projections for the next ten years. Ensure that the City is fully covering increased operating costs and paying down debt. Provide recommendations for accumulations of operating and capital reserves. In addition, L&T will provide funding alternatives for capital improvements.

L&T will incorporate rate sensitivity analysis to determine rate impacts under various scenarios, possibly

PROJECT DESCRIPTION
3 including cash funding of projects, debt funding of projects, water cutbacks, etc. Sensitivity analysis can often become an iterative process. L&T is flexible to run additional scenarios as needed.

Task 300 – Rate Schedule
Review existing rate structure and provide up to three (3) alternatives as appropriate. Rate options may include adjusting the base water allotment, modifying the number of tiers and/or tier breakpoints, drought rates, different rates for bulk water users, reviewing the meter fees, and updating the fire connection fees.

This task also includes an allocation of costs to fixed and variable components. L&T will prepare rate surveys comparing the proposed bills to the rates of other local utility systems. While compliance with Proposition 218 will guide all our recommendations, additional criteria may include: affordability of potential rates, ease of understanding, revenue stability, the impact on customer bills, public implementation, compatibility with the existing billing system, and staff effort needed for administration.

Task 400 – Draft and Final Reports & Excel Model
Prepare a draft report explaining the alternatives, documenting costs, and calculating rates. The draft report will be revised as directed and resubmitted as the final report. We commit to providing printed copies, our Excel model, and training for our model, as desired.

Task 500 – Outreach, Presentations, and Prop 218 Assistance L&T’s proposal includes four (4) in-person meetings. A sample meeting schedule could include: one (1) meeting with the Finance Committee, one (1) presentation of draft results to the City Council, one (1) presentation of the final results to the City Council, and one (1) meeting to attend the Proposition 218 public hearing. In addition, we will conduct virtual progress meetings with staff (likely 5 meetings) to review intermediate drafts. L&T will prepare PowerPoint files and accompanying documents in advance for project team review and inclusion with meeting materials. L&T will also draft outreach materials for customers such as newsletters, FAQs, and the Proposition 218 public hearing notices.

DELIVERABLES
o Data request list
o Kickoff meeting
o Virtual progress meetings with staff and action items distributed to the project team o Debt coverage projection and future debt capacity analysis, if applicable o Review of prudent reserves and recommended reserve fund levels o Ten-Year Financial Plan summarized in cash flows
o Analysis of fixed and variable operating and capital costs o Assessment of customer characteristics including water use and number of accounts o Rate design options including evaluation of water rate tiers, drought rates, and fire connection fees o Five-year rate increase plan
o Bill impacts and rate survey of local agencies
o Draft and final reports
o Financial model in Excel and staff training in the use of the model o Proposition 218 public notice draft and/or educational materials, newsletters, social media postings, etc. o Four (4) in-person meetings/presentations with the City (additional in-person meetings can be included for an additional cost)
4 PROJECT CONTACT PERSON
Alison Lechowicz will serve as the Principal-in-Charge and main contact person. For any questions concerning the proposal, please contact her. All three L&T staff members are available to assist with the project.

Alison Lechowicz, Principal
Lechowicz & Tseng Municipal Consultants
909 Marina Village Parkway, #135
Alameda, CA 94501
(510) 545-3182
[email protected]

WHO WE ARE

IDENTIFICATION OF FIRM
Lechowicz & Tseng Municipal Consultants is a womenowned firm founded by Alison Lechowicz and Catherine Tseng. Our objective is to provide financial consulting and management services to local governments. Alison and
Catherine have over 30 years combined experience in
municipal consulting and public finance. Catherine has a background in urban planning and worked for the City of Oakland before becoming a consultant. Alison has
experience working for a civil engineering firm and a
background in public administration.

We have completed over 100 studies compliant
with Propositions 218 and 26. L&T is committed
to providing professional services with superior
value and responsiveness. By using a small team
approach, our clients receive greater one-on-one
attention and can be assured that all work is
conducted by highly qualified professionals. Our
clients are provided direct communication with
the principal consultants who guide the project
through each step.

Nature of Firm: Women-owned firm
organized as an LLC
Services: Utility Rate & Fee Studies,
Financial Planning, Capacity Fee Studies,
Utility Appraisal, Expert Witness, Public
Approval Process
Size of Firm: Three staff members
Location of Office: Alameda, CA
Management Staff: Alison Lechowicz and
Catherine Tseng
Years in Business: 7 years
Registrations: Small Business Enterprise,
Women-owned business
Other Languages Spoken by Staff:

Spanish
Employer Identification Number
(EIN): 82-0928239
California Small Business Number:
2006322
5 SERVICES

ORGANIZATIONAL CHART
No subconsultants are needed for this assignment. L&T’s organizational chart is provided below. We are an independent firm and not a subsidiary of any other entity.

Utility Rate & Fee Studies
Utility rate studies deriving both traditional
and innovative rate structures that comply
with cost of service principles and Proposition
218 requirements. Address policy goals,
customer acceptance, and social influences.

Impact Fee/Capacity
Charge Studies
Development impact fees and capacity charge
studies that offset the cost of expanding
infrastructure to serve new development
without placing a burden on existing
customers.

Financial Planning & Modeling
Comprehensive financial plans focused on
immediate needs as well as the long-term
viability of agencies. Our financial models are
flexible and user-friendly to allow for cash
flow sensitivity analysis and to illustrate the
impacts of policy decisions.

Public Approval Process
Lead informational workshops to educate the
public about municipal finance. We provide
start-to-finish assistance in the rate and fee
approval process, including presentations to
decision makers, publication of reports, and
printing and mailing of notices (as applicable).

Utility Appraisal
Develop an inventory of utility assets and
determine fair market value. We assist public
agencies with negotiating the purchase or sale
of utility property.

Expert Witness
Testify on behalf of public agencies to defend
against lawsuits. We also represent public
agencies as streetlight customers of
California's electric utility providers in rate
cases at the CA Public Utilities Commission.

Alison Lechowicz
Principal
50% ownership
Sophia Mills
Financial Analyst
Catherine Tseng
Principal
50% ownership
6 PROJECT TEAM
Alison Lechowicz will serve as the Principal-in-Charge and main contact person for the Water Rate Study. She will manage the day-to-day aspects of the project to ensure it is within budget and on schedule. Catherine Tseng will provide peer review and act as a substitute for Ms. Lechowicz if needed.

Sophia Mills will serve as financial analyst. Resumes are provided as an attachment.

PROJECT ORGANIZATION & PROJECT TEAM
 17 years consulting experience
 Master of Urban Planning
 Bachelor of Architecture
Financing alternatives and
cash flow projection
Rate recommendations
Public presentations

PROJECT MANAGER, LEAD FINANCIAL ANALYST

QUALIFICATIONS RESPONSIBILITIES
Alison Lechowicz

PEER REVIEW
 17 years consulting experience
 Master of Public Administration
 Testified as an expert witness at the CA
Public Utilities Commission
 Prior Certifications: Series 50 and 54 –
Municipal Advisor Representative and
Principal

QUALIFICATIONS RESPONSIBILITIES
Methodological Review
Review of draft and final
reports
Substitute for Ms.

Lechowicz as needed
Sophia Mills

FINANCIAL ANALYST

QUALIFICATIONS
 4 years consulting experience
 Bachelor of Economics
and Bachelor of Spanish
 Fluent in Spanish
 Specializes in financial modeling

RESPONSIBILITIES
Data gathering
Financial modeling
Draft and final report
Spanish translations
Catherine Tseng
7 PROJECT MANAGEMENT APPROACH
Our approach to our work is simple – we roll up our sleeves and get the job done. When initiating a project, it’s impossible to know every twist and turn an assignment may take. Unexpected issues may arise, out of scope tasks may be required, and political sensitivities may become uncovered. L&T strives to be flexible and responsive to our clients. We remain available to take on additional tasks, coordinate between departments, agencies, and contractors, attend evening meetings, make presentations, and provide clerical support such as printing and mailing of public notices. Successful projects consist of both major deliverables and many small administrative tasks. Lechowicz & Tseng maintains high client satisfaction because we take responsibility for all aspects of our assignments.

During project initiation, we will finalize the schedule and set deliverables by working backwards from the desired Proposition 218 hearing date. We will provide bi-weekly check-ins and monthly billing summaries to ensure that the project is on schedule and within budget. Following each meeting, we aggregate our notes and provide a list of follow-up action items.

We have an excellent track record of completing assignments on-time. All work will be conducted by Alison Lechowicz, Catherine Tseng, and Sophia Mills. No subconsultants are needed for this assignment.

Work will be conducted out of our office in Alameda, CA. L&T commits to the availability of all key project staff during the proposed study period and will dedicate the appropriate levels of time, personnel, and resources to the rate study.

REQUESTED INTERACTION WITH CITY
L&T understands that the rate study process can be burdensome for public agencies. Our goal is to take on as many administrative tasks as possible to streamline the study. L&T will be responsible for all project analysis and the preparation of meeting and presentation materials for project team and Council meetings. L&T will also draft the final study report as well as the Proposition 218 mailer and additional public outreach materials as requested by the City. Expected time commitment and information required from City staff can be estimated based on the following tasks:
o Respond to L&T’s data request consisting of items such as: budgets, audits, utility billing data, water usage data, and capital improvement plans
o Attend kickoff and progress meetings (agenda and materials will be provided in advance) o Review and comment upon draft and final reports
o Review from the City’s legal counsel on recommendations, reports, and procedures o Discuss any political sensitivities or issues that may hinder fee adoption o Coordinate and schedule meetings with the City Council and/or the public 8 SCHEDULE
Provided below is Lechowicz & Tseng’s draft schedule for the rate study with the project completed by July 1, 2025. Based on the timeline outlined in the RFP, we propose to submit the draft Rate Study in December 2024. The final report will be prepared by March 2025 based on feedback from staff, Council members, and the public. We are flexible to adjust the schedule as needed. 1-4 – in-person meetings; V – virtual meeting; D – draft report submitted; F – final report and Prop 218 notice submitted

MEETINGS
Provided below is a sample meeting schedule that will be updated with input from the project team. In addition to four (4) in-person meetings, our proposal includes virtual meetings for progress meetings with staff. Additional progress meetings can be scheduled as needed throughout the project.

Meeting #1 (Virtual) Kickoff meeting with Project Team
Meeting #2 (Virtual) Review preliminary findings with Project Team Meeting #3 (In-Person) Present draft findings to the Finance Committee Meeting #4 (Virtual) Review revised recommendations with Project Team Meeting #5 (In-Person) Present revised recommendations to City Council Meeting #6 (Virtual) Review final recommendations with Project Team Meeting #7 (Virtual) Virtual meeting with the Finance Committee Meeting #8 (In-Person) Present final report to City Council; initiate Proposition 218 process Meeting #9 (In-Person) Proposition 218 Public Hearing to adopt rates

WORKLOAD
L&T is fully capable of completing all work based on the proposed schedule. We plan to conduct the majority of the analysis in the fall. This schedule coincides with completion of several projects in the summer for other clients and thus L&T has more than adequate capacity to complete the City’s rate study report by the end of the year. Lechowicz & Tseng maintains high client satisfaction because we take responsibility for all aspects of our assignments and meet tight deadlines.

PROJECT TASK
100. Project Management
200. Revenue Requirements
300. Rate Schedule
400. Reports & Model DF
500. Meetings & Prop 218 VV1V2 V V 3 4

SEPT DEC OCT NOV FEB MAR APR MAY JAN
PROP 218
9 City of Wasco: Water and Sewer Rate Study
The City of Wasco provides water and sewer services to over 5,100 customers.

Alison Lechowicz served as the project manager for the City of Wasco’s Water and Sewer Rate Study subject to a successful Proposition 218 majority protest proceeding held in January 2023. The City last conducted a water rate study in 2015. The water utility was generating positive net revenues and had healthy reserves; however, rate structure changes were needed to more equitably recover costs and to conform with State water conservation guidelines.

The City’s previous water rate structure consisted of a minimum fee that included a base allotment of water with usage over the allotment billed a volume rate. L&T recommended the City reduce the base allotment of water for all customer classes such that the allotment equals the indoor, efficient use for the average customer. Due to water conservation since the prior rate study, the water allotments no longer accurately reflected water use patterns and included over 90% of residential water use. To mitigate early year rate impacts, L&T developed three rate options for how to phase in the proposed rate structure changes.

City of Kerman: Water, Sewer, and Storm Drain Rate Study Kerman is a city located in Fresno County about 15 miles west of the City of Fresno.

L&T completed a Water and Sewer Rate Study in 2018. More recently, L&T completed a Water, Sewer and Storm Drain Rate Study for the City in December 2023. Alison Lechowicz served as lead analyst and project manager for both projects.

In 2018, the rate study corresponded with the City’s water metering project.

A key element was to project water use for newly metered customers (about half the service area). We compared the characteristics of the fully metered and newly metered customers to conservatively estimate water consumption. As part of the study, Ms. Lechowicz advocated for ongoing pipeline replacement funding. Prior to this effort, City policy was to forego main replacements to keep rates as low as possible. L&T was successful in raising the rates to reinvest in infrastructure to avoid costly future repairs. In 2023, we added a schedule of drought rates and a meter replacement fee. Ms.

Lechowicz also assisted the City with Proposition 218 implementation.

Calaveras Public Utility District: Water Rate Study
The Calaveras Public Utility District (CPUD or District) provides treated surface water to about 2,100 accounts in the foothills of Calaveras County. Prior to L&T’s work, the District provided customers with a base allotment of water in the meter fee and had a declining 3-tiered rate structure. In June 2023, L&T completed a water rate study that eliminated the base allotment, transitioned to a uniform rate structure, and provided a schedule of

PAST EXPERIENCE
Alberto Martinez
Deputy Public Works Director
[email protected]
(661) 758-7271
Josefina Alvarez
Finance Director
[email protected]
(559) 846-4682
10 drought rates. L&T also provided the printing and mailing of the Proposition 218 notice of public hearing and conducted two community outreach meetings.

District management was concerned that the free water allotment and declining block structure were out of compliance with Proposition 218 as well as the requirements described in the San Juan Capistrano court case ruling. The ultimate goal of L&T’s rate update was to simplify the rates, raise revenues to cover debt and capital costs, and to assist with implementation. With District input, L&T eliminated the free water allotment and reduced the number of customer classes. We also advocated for a single treated water rate (plus emergency drought rates) to be applied to all levels of use.

EXPERIENCE WITH SIMILAR AGENCIES
Provided below is a selection of L&T’s recent projects. We specialize in helping agencies serving populations of 30,000 or fewer.

CLIENT

ACCOUNTS

OR PARCELS PROJECT
Christian Valley Park CSD 632 Water Rate Study (2024)
McMullin Area GSA 1,150 Groundwater Fee Study (2018 & 2023) Kelseyville Waterworks District 1,200 Water and Sewer Rate Study (2024) South Fork Kings GSA 1,200 Proposition 218 Assessment Balloting & Outreach (2024) Maywood Mutual Water Co. 1,200 Water Rate Study (2022)
City of Rio Dell 1,300 Water and Sewer Rate Study (2022) City of Brisbane 2,000 Water and Sewer Rate Study (2023) City of Gonzales 2,000 Water and Sewer Rate Study (2023) Calaveras Public Utility District 2,100 Water Rate Study (2023) City of Waterford 2,600 Sewer Rate Study (2019 & 2024)
City of Tehachapi 3,000 Water and Sewer Connection Fee Study (2020) Parks and Civic Connection Fee Study (2021)
City of Kerman 3,800 Utility Rate Studies (2018 & 2024) City of Chowchilla 3,900 Utilities Rate Study (2020)
City of Anderson 4,000 Water Rate Study (2021 & 2024)
Northwest Regional
(Lake County) 4,000 Sewer Rate Study (2024)
City of Wasco 5,100 Water and Sewer Rate Study (2023)
Town of Discovery Bay CSD 6,200 Multiple Water and Wastewater studies CSD – Community Services District; GSA – Groundwater Sustainability Agency Travis Small
General Manager
[email protected]
(916) 716-3287
11 BUDGET
The following tables outline Lechowicz & Tseng Municipal Consultants’ proposed budget by task. Our not-to-exceed Fee Estimate includes four (4) in-person meetings. We remain flexible to refine our scope and price proposal to meet the City’s needs. L&T will invoice the City monthly for time and materials.

BILLING RATE SCHEDULE 2024/25
Lechowicz & Tseng’s hourly rate is $210 for principals and $140 for staff analysts. No subconsultants are needed for this assignment. Professional time rates include all overhead and indirect costs. Direct expenses incurred on behalf of the client will be billed at cost. Direct expenses include, but are not limited to:
o Travel, meals, lodging o Automobile mileage
o Printing and report binding o Courier services and mailing costs o Outside computer services or software
development
o Special legal services

PROPOSED FEE
Lechowicz Tseng Mills
Project Mgr Peer Review Financial
$210/hour $210/hour $140/hour
100. Project Management 12 0 4 16 $3,080
200. Revenue Requirements 20 2 12 34 $6,300
300. Rate Schedule 14 2 14 30 $5,320
400. Reports & Model 16 2 24 42 $7,140
500. Meetings & Prop 218 28 0 8 36 $1,000 $8,000
TOTAL PROJECT BUDGET 90 6 62 158 $1,000 $29,840

PROJECT TASKS
HOURS
BUDGET
Total
DIRECT

EXPENSES
12 Lechowicz & Tseng Municipal Consultants certifies that it has fully read the City’s Request for Proposals and takes no exceptions including, but not limited to, the City’s typical Consultant Services Agreement.

EXCEPTIONS TO THIS RFP

ATTACHMENT A: RESUMES
Alison Lechowicz

EDUCATION
o Columbia University
Master of Public Administration
o University of California, Berkeley
Bachelor of Science
Conservation & Resource Studies

REPRESENTATIVE ASSIGNMENTS
o 17 years consulting experience: 7 years
Co-founder and Principal at L&T Municipal
Consultants, 7 years as Principal and
Financial Analyst at Bartle Wells
Associates, 3 years as Financial Analyst at
Carollo Engineers
o Testified as an expert witness at the
CA Public Utilities Commission in electric
rate cases of Pacific Gas & Electric,
Southern California Edison, and
San Diego Gas & Electric
o Prior Certifications: Municipal Securities
Rulemaking Board, Series 50 & 54 –
Municipal Advisor Representative and
Municipal Advisor Principal

EXPERIENCE
[email protected]
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182
City of Kerman: Completed a water and sewer
rate study for the City. Updated winter water use
estimates for single family residential sewer rates.

Phased-out discounts for multifamily sewer
customers.
_____________________________________
Calaveras Public Utility District: In 2023,
conducted a water rate study for the District.

Conducted two ratepayer outreach meetings.

Focused on bringing the District’s rates into
compliance with recent court cases.
_____________________________________
Christian Valley Park Community Services
District (Placer County): June 2024, completed a
water rate study for the District (630 connections)
which is located in the foothills of Placer County.

Conducted a ratepayer outreach meeting and
handled all Proposition 218 compliance tasks.
____________________________________
Root Creek Water District (Madera County):

Financial plan for the District’s groundwater basin
and agricultural water service. Water, sewer, and
storm drain rates and development fees for
municipal service.
____________________________________
Templeton CSD (San Luis Obispo County):

Completed a water and sewer rate study.

Conducted an analysis of the District’s four water
sources, determined the marginal cost of each
source, and assigned each source to a water rate
tier. Evaluated the transition of the District from
regional wastewater treatment to local treatment.
_____________________________________
City of Waterford: Completed sewer rate studies
in 2019 and 2024. Reviewed alternative rate
structures such as volume/flow based billing.

Ultimately, assigned fixed rates to customers based
on class average flows and pollutant loading.

Catherine Tseng

EDUCATION
o Columbia University
Master of Urban Planning
o University of California, Berkeley
Bachelor of Arts
Architecture

REPRESENTATIVE ASSIGNMENTS
o 7 years Co-founder and Principal at L&T
Municipal Consultants
o 10 years prior consulting experience:

Vice President at Bartle Wells Associates
o 2 years civil servant: City of Oakland
o Specializes in utility rates, capacity charge,
and financing plans for public works
projects, and Proposition 218 compliance

EXPERIENCE
catherine@
LTmuniconsultants.com
(510) 858-9228
909 Marina Village Parkway #135
Alameda, CA 94501
City of Chowchilla: Completed a water, sewer,
storm drain, and solid waste rate study. Rates will
support the City’s recent bond issuances and
overcome prior deficit spending for the solid waste
enterprise.
_____________________________________
City of San Fernando: Water and sewer financial
plan and rate study and Proposition 218 printing and
mailing. Offered rate options to meet affordability
criteria including funding of only high priority
projects.
____________________________________
City of Anderson: Completed a water rate study
to address depleting reserves. Analyzed multiple
rate scenarios to minimize impacts to customers.

Currently updating the rate study to provide needed
funding for infrastructure improvements.
____________________________________
City of Brisbane: Conducted a water and sewer
rate study in 2023. The City last updated rates in
2013 but had not done a comprehensive cost of
service analysis since 2001. The update simplified the
water and sewer rate structures to reflect actual
costs.
___________________________________
City of Rio Dell: Completed a water and sewer
rate study in 2022 to fund mandated capital projects
and eliminate operating deficit.
____________________________________
Westborough Water District: Water and sewer
financial plan and rate study to separate combined
funds and to pay for wholesale water purchases and
treatment costs. Worked closely with Finance
Committee to develop recommendations to Board
of Directors.
________________________________________
Sophia Mills

EDUCATION
o Davidson College
Bachelor of Arts
Economics, Spanish
Town of Discovery Bay CSD: Water and sewer
rate study. Assisted the Town in rate updates to
accommodate new wastewater regulatory
requirements and capital project funding. Also
completed a water and sewer capacity fee study.
____________________________________
City of Anderson: Completed a water rate study
to address depleting reserves. Analyzed multiple
rate scenarios to minimize impacts to customers.
_____________________________________
City of Rio Dell: Conducted a water and sewer
rate study to fund mandated capital projects and
eliminate operating deficit. Analyzed impacts of alternative rate structures for each utility. ____________________________________
City of Gonzales: Completed a water and sewer
rate study with a focus on industrial customers who
use the majority of water in the City.
____________________________________
City of Brisbane: Conducted a water and sewer
rate study in 2023. The City last updated rates in
2013 but had not done a comprehensive cost of
service analysis since 2001. The update simplified the
water and sewer rate structures to reflect actual
costs.
____________________________________
City of Wasco: Recently completed a water and
sewer rate study. Designed a new water rate
structure to phase out free water allotments
included in the meter fees and documented sewer
flow and loading assumptions as the basis of the
sewer rates.
________________________________________
sophia@
LTmuniconsultants.com
(510) 529-8056
909 Marina Village Parkway #135
Alameda, CA 94501

REPRESENTATIVE ASSIGNMENTS

THANK YOU
909 Marina Village Parkway #135 | Alameda, CA 94501 | (510) 545-3182 | www.LTmuniconsultants.com

CONSULTING SERVICES TO THE CITY OF KINGSBURG
PROJECT TITLE:

WATER RATE STUDY REPORT
RESPONSE DUE BEFORE 4:00 P.M. ON
JULY 31, 2024
REQUEST FOR PROPOSALS TO PROVIDE:

SUBMIT TO:

Electronic Submission:

City Clerk, Abigail Palsgaard
[email protected]
For questions concerning this RFP contact by e-mail:

Daniel Galvez, Public Works Director
559-897-1066
[email protected]

NOTICE REQUESTING PROPOSALS (RFP) FOR

WATER RATE STUDY REPORT
NOTICE IS HEREBY GIVEN that the City of Kingsburg, California, will receive electronic proposals from qualified Consultants addressed to City Clerk, Abigail Palsgaard at [email protected].

The services to be performed by the successful Consultant are described in this Request for Proposal under “Project Scope of Services”. Request for Proposal documents may be obtained from the City’s website at www.cityofkingsburg-ca.gov or by contacting City Clerk, Abigail Palsgaard, at (559) 897-5821 or [email protected].

Proposals shall be electronically delivered and clearly marked “Kingsburg Water Rate Study Report.” All responsive proposals shall be reviewed and evaluated by the City to determine which Consultant best meets the City’s needs for this project by demonstrating the competence and qualifications necessary for the satisfactory performance of the required services. The criteria by which the City shall evaluate proposals are set forth in this Request for Proposal.

The City of Kingsburg reserves the right to reject any or all proposals, to delete portions of any and all proposals, to waive any informality or irregularity in any proposal received or in the RFP procedures, and to be the sole judge of the merits of the qualifications received.

Be advised that unauthorized conditions, limitations, or provisions attached to the Proposal may render it unresponsive and may cause its rejection. Oral, telegraphic, or telephonic proposals or modifications will not be considered. The award, if made, will be made to the most qualified vendor based on the criteria set forth in the RFP documents.

Submission Format:

Submit one (1) electronic copy via email to City Clerk, Abigail Palsgaard at [email protected]

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
3 I. INTRODUCTION
The City of Kingsburg is soliciting proposals from qualified firms to conduct a Rate Study to assist in determining how the City funds the administration, operation, maintenance and capital replacement and improvement of its water system. The City is seeking a multi-year plan to align revenue with expenses, including on-going maintenance, repairs and upgrades to infrastructure.

The study will evaluate all current water rates, system revenue generation and full cost recovery. The study will provide recommendationsforrevenue structuresthat will comply with allfederal,state and localregulations, and will meet all debt-service requirements.

The City anticipates submission of a draft Rate Study by the end of 2024, unless an alternative timeline by the consultant is identified. Following the acceptance of the draft rate study, the consultant will provide presentations to the City’s Finance Committee, City Council and the public within one to two months. A final report will be prepared based on input received during these presentations. If necessary and approved, a new rate structure would take effect on July 1, 2025.

II. GENERAL INFORMATION
A. Water Supplier
The City of Kingsburg is a community with a population of just over 13,000 located in the San Joaquin Valley in Central California. The City is in southern Fresno County, near the Fresno County line, just north of the Kings River. The City is an Urban water supplier to approximately 4,000 connections. The system is supplied by 7 groundwater wells located within the City limits and uses a grid water main system to deliver to its customers. The City produces and treats water based on short-term water demand. The City chlorinates at each of our well sites and has Granular Activated Carbon treatment at two well locations to continue providing water supplies that meet current potable water standards.

The Public Water System has sufficient redundancy to allow for wells and other facilities to be taken offline as needed for maintenance or repairs. Wellhead groundwater treatment facilities have been installed where necessary
The City was established in 1908 and has grown over time to its current size of just over 13,000 in population. The City relies entirely on groundwaterresources, but does purchase surface water from Consolidated Irrigation District as part of our Groundwater Sustainability Plan, for the purposes of recharge. The City is a member of the South Kings Groundwater Sustainability Agency (SKGSA) which was formed in compliance with the Sustainable Groundwater Management Act to cooperatively manage local groundwater in a sustainable manner. The SKGSA Groundwater Sustainability Plan was adopted in 2019. The SKGSA GSP was submitted to DWR in coordination with 7 other GSPs that together cover the Kings Subbasin. The SKGSA GSP identifies management actions and proposes projects to maintain the groundwater resource in a sustainable condition under future climate change conditions for the next 50 years. The SKGSA GSP identifies sustainable management criteria for water levels. Maintaining water levels above the Minimum Threshold levels identified in the SKGSA GSP is anticipated to allow the City’s wells to meet the demands of the Public Water System while minimizing undesirable results such as chronic groundwater level declines and degraded water quality. The most recent SKGSA GSP Annual Report indicates that groundwater levels at Representative Monitoring Sites near the City are above their designated Minimum Thresholds and on track to meet the forecast groundwater level projections and Interim Milestones established for these wells. Groundwater recharge is proposed to be implemented near the City’s well fields to help maintain groundwater levels

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
4 The City completed a 2020 Urban Water Management Plan and water system model update in 2022 (links included). The city currently has 1,823 acres of developed land and will impact another 1,411 acres in building out to its current General Plan limits. The model anticipates the city will need to build another 3 (at minimum) new wells as development is completed.

The City of Kingsburg Municipal Water System contains the following:
• 79 miles of pipe (ranging from 2” to 12” in diameter) • 7 wells (4 static + 3 variable frequency)
• 6 pressure relief valves (emergency pressure relief only) The City of Kingsburg operates and maintains a Supervisory Control and Data Acquisition (SCADA) system to assist in the management and control of the water system. The SCADA system is capable of gathering and recording system data that is more readily available for system analysis.

B. Ongoing Investmentsin Infrastructure
The existing water distribution system, with the recent addition of Well #16, is operating efficiently. The 2023 water model update identified various portions of the existing water system require upgrade for fire protection purposes. It’s recommended that the City begin a multi-year capital improvement program for the replacement of deficient water lines which could coincide with the City’s pavement overlay and maintenance program.

C. Membership in the South Kings Groundwater Sustainability Agency (SKGSA) The City is one of the founding members of the South Kings Groundwater Sustainability Agency (SKGSA) along with the City’s of Sanger, Fowler, Parlier and Del-Rey CSD. SKGSA was formed in response to California’s 2014 Sustainable Groundwater Management Act and is charged with managing groundwater resources in the critically over-drafted Kings groundwater basin. SKGSA submitted its mandated Groundwater Sustainability Plan in July 2022, and it was approved by the State in 2023. The City is committed to annual expenditures for both surface water purchases and capital projects to aid in recharge. This study should consider the financial impacts required to meet our State-accepted Groundwater Sustainability Plan.

III. PROJECT SCOPE OF SERVICES
The scope of required services for this project includes:

TASK 100 – PROJECT MANAGEMENT
Consultant shall propose a project schedule that meets or improves upon the timeline provided in this Request for Proposals.

Consultant shall provide overall project management, including contract administration and budget and schedule tracking.

Consultantshall provide internal quality control and quality assurance procedures.

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
5 Consultant shall assume about five meetings with staff, two public meetings (one each with the City Council and & Finance Committee), and one public outreach workshop under the auspices of the City to gather community input.

TASK 200 – REVENUE REQUIREMENTS AND RATE SCHEDULE
Consultant will conduct a detailed review of the City’s operating and capital improvement budgets to determine revenue needs over 5-year and 10-year time horizons. Consultant will develop recommended alternatives for a 5-year rate schedule beginning with the fiscal year starting July 1, 2025 that promotes financial sustainability and maintains adequate debt coverage and reserve levels. To do so, the Consultant shall develop an understanding of the 2023 Water System Model Update, the existing rate structure and the assumptions underlying cost distribution to the various cost centers, the City’s reserve policies and other financial policies, and the City’s existing debt-service requirements. In addition to studying relevant City reports and plans (links provided under VIII), the Consultant will familiarize themselves with the demographics ofthe City’sratepayers and undertake field investigations sufficient to provide the appropriate background for making recommendations.

The rate study shall include the following:
• Executive Summary- A narrative to summarize the scope of the study, consultant’s findings and recommendations
• A detailed cost-of-service analysis.
• A determination of current and future revenue needed to provide water services in conformance with current and anticipated changes to standards andregulations, and to undertake ongoing repair, maintenance, and upgrades of infrastructure.
• The development of a parameter-driven budgeting spreadsheet that incorporatesthe City’s existing budgeting constructs and allows modeling for periods of up to 10 years, including but not limited to the following parameters:
o Revenues under existing and modeled volumetric and connection rates o Growth in staffing expenses, including regular, overtime and incentive pay, benefits and pension obligations
o Fixed and variable costs(e.g., utilities, chemicals, vehicles,software, consultants, outreach, travel), and includes a template forshowing total operating margin, debt payments (interest and principal), and capital projects.
• An assessment of the existing customer service fee structure, including, when applicable, comparable rates to neighboring cities. Identifying potential areas for new service and system charges, and recommendations regarding potential future charges.
• An exploration of various options for changes from the existing rate structure, including possible options in the list below, which may be altered or refined as the rate study develops based on discussions between City staff and the selected Consultant:
o Tiered volumetric rates, including one model in which the lowest tier is tied to California’s standard for per capita indoor water usage
o Different rates for bulk water users(e.g., schools, mobile home parks) o Drought/ Conservation Rates
o Meter Fees
o Fire Connection related charges/fees
o Redistribution of revenue between service charges and volumetric charges to reflect the fixed nature of the majority of the City’s operational costs, and to make annual revenue more predictable and less tied to consumption, which can be restricted in times of drought
• A demonstration that any recommendations on rate structure meet cash-flow objectives. • Modeling how alternative rate structures would affect residential households as a function of use pattern (e.g., low-use, median use, high use).

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
6 • Recommendations for methods of communicating utility costs to ratepayers, assessing the ease of communication associated with each alternative rate structure, including how the layout of the utility bill might be used to identify actual costs of providing waterservices under different rate structures.

TASK 300 – FINAL RATE STUDY REPORT
Consultant shall prepare a draft report that provides a detailed analysis of work performed and assumptions made. The report shall provide a clear written analysis of the basis upon which revenue needs were calculated.

Consultant shall incorporate changes pursuant to comments received on the draft report on presentation to the City’s Finance Committee and the City Council. Consultant will present the final report and recommended rates to the City Council and members of the public at a formal public hearing.

Final report shall include a budget model spreadsheet and an easy-to-use rate model in Excel format for use on a Microsoft Windows-based system. Consultant shall provide adequate training for said models.

Consultant shall provide three (3) hard copies (one wet signature and two copies) and a digital copy of the final report in both Adobe Acrobat (pdf) and Microsoft Word & Excel formats.

TASK 400 – PROP 218
• City shall confer with Consultant on content of the Final Report to meet Prop 2018 requirements. • The consultant will provide guidance and advice to City staff to ensure compliance with the Proposition 218 process as it applies to water services. Provide the City with written notice to the record owner on the proposed rate adjustment. Provide the City with public outreach material that can be released in the City’s newsletter, website and social media pages. If the rate study finds it necessary, it is the intent of the City to complete and adopt the Water rates at the conclusion of the Proposition 218 process at a public hearing.

The consultant will provide an easy-to-use electronic rate model for the City to use in future rate setting.

IV. PROPOSAL REQUIREMENTS
The proposal shall not exceed 13 pages excluding resumes, cover letter, dividers, and front and back covers.

Responses to this RFP shall be in the following order and shall include:

1. Executive Summary (1 pagemaximum)
Summarize the contents of your firm’s proposal in a clear and concise manner.

2. Project Description (2 pages maximum)
i. Explain the objective of the project and how you propose to accomplish the recognized goals. ii. Describe the services and deliverables to be provided. iii. Include a statement on what makes your firm uniquely qualified.

3. Identification of Prime Consultant Firm and Subconsultants (2 pagesmaximum) i. Legal name and address of the firm.
ii. Legal form of firm (e.g., partnership, corporation). iii. If firm is wholly owned subsidiary of a "parent company," identify the "parent company." iv. Name, title, address, email, and telephone number of person to contact concerning the Proposal. v. Number ofstaff and the discipline/job title of each. vi. If any Subconsultants will be used, provide information for items i.-v. above for each.

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
7 4. ProjectOrganization and Experience of the Project Team (3 pages maximum, not includingresumes) i. Describe proposed project organization, including identification and responsibilities of key personnel, including subconsultants. Attach resumes of key personnel (maximum one page each).
ii. Describe the experience of the Project Manager and the experience that the proposed personnel have working on past projects as a team.
iii. Describe project management approach to the work effort, locations where work will be done, responsibilities for coordination with the City, and lines of communication necessary to maintain schedule.
iv. Describe a proposed schedule showing all facets of work that will meet the City’s objectives and goals in a timely manner. Provide a proposed timeline (Gantt chart) for completion of tasks and subtasks. v. Describe the firm’s capacity to perform the work within the time limitations, considering the firm’s current and planned workload and workforce.

5. Consultant ’s Past Experience (2 pages maximum)
i. Describe the firm’s past experience and performance on similar projects. ii. Describe the firm’s experience with water systems in California and/or water systems that resemble the City’s facilities and service area.

6. Proposed Total Professional Fee and Fee Schedules
i. Proposed fee shall be organized with appropriate breakdown into subtasks. ii. Include the hourly rate of all staff that will be charged directly to the project. iii. Proposed fee shall not be the sole basis of award, but will be used to evaluate the Consultant’s understanding of the Scope of Work.

7. Exceptionsto this RFP
The Consultant shall certify that it has fully read the RFP and takes no exceptions to this RFP including, but not limited to, the Consultant Services Agreement. If the Consultant does take exception to any portion of the RFP, the specific portion(s) of the RFP to which exception is taken shall be identified and explained.

V. EVALUATION CRITERIA
The evaluation criteria and the respective weights that will be given to each criterion are as follows:

1. Executive Summary ...................................................................................................................... 5%

2. Project Description ....................................................................................................................... 10%

3. Identification of Prime Consultant Firm and Subconsultants ...................................................... 10%

4. Project Organization and Experience of the Project Team ........................................................... 20%

5. Consultant’s Past Experience ......................................................................................................... 25%

6. Proposed Total Professional Fee and Fee Schedules ……………………………………………………………….... 30%

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
8 VI. SELECTION PROCESS
The City may interview the two top-ranked firms. The City will evaluate all proposals and make a selection of the top firm based upon the best response. The City, at its discretion, may elect to hold interviews. Date and time to be mutually agreed upon. The City will notify the selected firm via letter or email. Upon completion of the city review and potential interviews, the city will select a preferred Consultant Team. The City intends to negotiate the contract with the selected Consultant Team in a timely manner so The consultant and sub-consultants will be required to comply with all terms and conditions set forth in the City of Kingsburg Standard Form Professional Services Agreement including all insurance requirements and indemnity requirements. Any exceptions from these terms and conditions must be specified in the proposal, and any exception may be a basis for rejection of the proposal from further consideration.

The City will enter into negotiations with the selected firm. At this time, the City is contemplating the use of a Time and Material Not to Exceed contract for the services requested. Negotiations will cover: scope of work, contract terms and conditions, office arrangements, meeting requirements, proposed schedule, and appropriateness of the proposed fee. After negotiating a proposed agreement that is fair and reasonable, the City Manager will execute the contract with authorization from the City Council.

VII. SELECTION SCHEDULE
The City anticipates that the process for selection of firm and awarding of the contract will be according to the following tentative schedule:

Proposal Due Date July 31, 2024
Interviews and Negotiation with Selected Firm TBD in August City Council Approval Sept. 4, 2024
Notification Sept. 5, 2024
VIII. LINKS TO BACKGROUND INFORMATION
Linksto documents providing background for preparation of Proposal:
• 2023 Water System Model Update
• 2020 Urban Water Management Plan
• 2023 Groundwater Sustainability Plan of the South Kingsburg Groundwater Sustainability Agency IX. SUBMITTAL REQUIREMENTS

1. Questions regarding this RFP shall be submitted in writing to Director of Public Works, Daniel Galvez at [email protected].

2. The response Proposal must be received no later than 4:00 p.m. local time, on or before July 31, 2024.

3. Please send Proposal via email to City Clerk, Abigail Palsgaard at [email protected] with the subject line “Kingsburg Water Rate Study Report”.

4. The Proposal should be delivered in a format fully compatible with either Adobe Acrobat (pdf) or Microsoft Word.

Failure to comply with the requirements of this RFP may result in disqualification. Late responses will not be accepted or considered. The City reserves the right to reject any or all proposals submitted.

All materials received become the property of the City of Kingsburg and may be subject to public records request.

CITY OF KINGSBURG

WATER RATE STUDY UPDATE
9 SIGNATURE SHEET
My signature certifies that the proposal as submitted complies with all terms and conditions as set forth in this RFP.

My signature certifies that this firm has no business or personal relationships with any other companies or person that could be considered a conflict of interest, or potential conflict of interest to the City of Kingsburg, pertaining to any and all work or services to be performed as a result of this request and any resulting Contract with the City.

The Consultant hereby certifies that it has:
• Examined the local conditions and current City of Kingsburg Impact Fees. • Read each and every clause of this RFP.
• Included all costs necessary to complete the specified services in its proposed prices. • Agreed that if it is awarded the Contract, it will make no claim against the City based upon ignorance of local conditions or misunderstanding of any provision of the Contract. Should conditions turn out otherwise than anticipated, the Consultant agrees to assume all risks incident thereto.

I hereby certify that I am authorized to sign as a Representative for the Firm:

Name of Firm:

Address:

Fed ID No:

Name (type/print):

Title:

Telephone:

Email: Date:

To receive consideration for award, this signature sheet must be returned with the Proposal.

Kingsburg City CouncilSeptember 4, 2024

Kingsburg City Council
September 4, 2024