Agenda packet, regular meeting, first session — La Verne City Council, July 1, 2024 (part 2 of 2)

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 23-XX
21 11. Emergency Medical Services
The La Verne Fire Department, or its contracted billing service, will bill the insurers of La Verne residents, including Federal health care programs, but only to the extent of their insurance coverage to ensure no "out of pocket" costs. Third party billing is established to provide for the long-term sustainability of the La Verne Fire Department’s Emergency Medical Services and Ambulance transport programs.

Individuals who are not residents of the City of La Verne and have been a recipient of Emergency Medical Services shall be charged fees for services rendered without regard for "out of pocket" expenses.

Emergency Medical Service fee minimums are annually established by the Los Angeles County Department of Health Services. Individual fees adjusted beyond the minimum are established to ensure accurate cost recovery as determined by the Fire Department.

Advanced Life Support L.A. Co. rate
Advanced Life Support (Non-resident) LA Co. rate + 10.25% Basic Life Support L.A. Co. rate + 10.25%
Paramedic patient assessment fee LA Co, rate
Paramedic patient assessment fee (non-resident) LA Co rate + 10.25% Each additional patient 50% additional
Dispatch Fee $25
Mileage per mile L.A. Co. rate
Oxygen L.A. Co. rate
Medical Supplies $34
Documentation fee $15
Documentation fee (non-resident) $16
First Responder fee $488
Night Charge $31
Back-up Ambulance (Basic Life Support):

Use of back-up ambulance (transport only) $937
Non-emergency ambulance transport $937
Cost of Medical Supplies Actual cost per
current L.A. Co. rates

REGULATORY PERMIT FILING FEES

1. Those regulatory permits also requiring a City of La Verne business license and the term of the permit is the same as business license:
a. Business License Application processing $30 for new business $10 for annual renewal
b. Door-to-door solicitation $66
c. Fortune telling:

Processing fee for application $100
Regulatory Permit $100
d. Certificate of Necessity & Public Convenience:

Processing fee for application $50
e. Short-Term Rental Permit (initial application) $100
f. Short-Term Rental Permit (renewal) $35

2. Those regulatory permits not requiring a City of La Verne business license:
a. Garage sales $10
Penalty for failure to obtain permit
an additional $5
b.Charitable/Religious/Nonprofit Exempt except when
solicitors are paid, for which
the fee shall be $15
c. Christmas tree lots and/or $250 fee plus $250
Related Seasonal Sales cleanup deposit

3. The business of filming and videotaping within the City of La Verne:
a.Daily permit $300

Page 135 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 23-XX
22 b.Daily rental fee for City-owned
buildings or facilities excluding City
Parks and Recreational Facilities. $500
c. Use of other City services, equipment Actual cost per A.R. and/or personnel

4. Tobacco Retailer’s License Fee $300

5. Other regulatory permits not $15
specifically provided for elsewhere

ANIMAL CONTROL FEES

1. Dog License Fees
a. unaltered dog - 1 year/2 year license $100/$200
b. altered dog - 1 year/2 year license $30/$60
c. sr. citizen - unaltered dog $100/$200
d. sr. citizen - altered dog $10/$20
e. late application fee for new dog license $60
f. late renewal of dog license $60

2. Cat License Fees:
a. unaltered cat - 1 year $10
b. altered cat - 1 year $ 5
c. late application fee for new cat license $10
d. late renewal of cat license $10

3. Impound Fees:
a. dog - first incident: Altered/Unaltered $30/$30
b. dog – second incident: Altered/Unaltered $60/$60
c. dog – third incident: Altered/Unaltered $90/$90
d. cat: Altered/Unaltered $10/$10
e. small animals, i.e., rabbits, chickens, ducks, turtles $15 f. medium animals, i.e., goats, sheep, calves $25
g. large animals, i.e., horses, ponies, donkeys, $60
cows, pigs (trailer needed)

4. Food and Care (Per Day):
a. dog $10
b. cat $10
c. small animals $5
d. medium animals $10
e. large animals $40
f. all animals required to be quarantined at the shelter $20

5. Other Animal Control Fees:

Owner release fee
-Licensed/Unlicensed $100/$150
-owner requested euthanasia $50
-per litter $200
- per on-site pick-up $100
- carcass removal (owner's) $100

OTHER FEES

1. Research activities (for requests outside the scope of the Actual cost for time California Public Records Act if staffing and workload based on actual permit, a project may be undertaken salary including fringe benefits of the staff
member working on the
project.

2. Returned check or returned electronic payment $25

Page 136 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 23-XX
23 3. Copying fee (except documents 15¢ per page
pursuant to Fair Political Practice Act)

4. Providing Information on CD Media $15

5. Notary fee As set by State law

6. City Council Agenda Available free on website

7. City’s annual budget or comprehensive annual financial report Available free on website

8. Passport Application Acceptance Service Fees established by U.S.

Dept. of State

9. Passport Photo Service $17 (for set of 2)

10. Certification of records $10 per document, plus
copy fee

11. Emergency response costs related to DUI Actual cost.

Alcohol/drug traffic collision incidents. (Authorized
by Govt. Code Section 53150)

12. Sign recovery fee $10 per sign

13. Municipal Code Annual Supplement Service $50 (includes postage)

14. Fees for rental of parks and recreation facilities and programs are established and maintained by the Community Services Director by administrative regulation.

15. Park, open space, and recreation fees.

For credits, waivers, or adjustments, see Chapter 3.20, La Verne Municipal Code. a. New residential development $4,500 per unit
b. Senior residential development $3,000 per unit
c. Accessory dwelling unit $4,500 per unit
- Fee shall be a proportionate amount of the fee for a new residential structure based on the size of existing primary structure. (i.e., 2,000 s.f. house = $4,500 fee; 1,000 s.f. ADU is 50% of the size of the primary structure, thus fee is $2,250). d. Dormitories and assisted care facilities $1,500 per bed e. Very low, low, and moderate housing and mobile homes $1,500 per unit f. New commercial, industrial, and non-residential institutional space $0.40 per square foot The fees apply to new development, including additions that result in at least a 25% net increase in gross floor area in the case of commercial, industrial, and non-residential institutional space.

16. Fees for rental of City vehicles and equipment shall be established and maintained by the Public Works Department by administrative regulation.

17. Where maximum fees are specified by state law, those fees shall prevail over any fee specified herein.

FEE REDUCTION FOR ECONOMIC DEVELOPMENT PROJECTS - The City Manager, at his sole discretion, may offer a reduction in any impact or processing fee. Such reduction shall not exceed 30 percent, and shall apply only to specified economic development projects which meet one or more of the following objectives:

1. Any project generating more than 100 new, permanent jobs; in a category deemed desirable after review by the City Manager.

2. Any project which adds more than $100,000 in projected annual sales tax revenues to the City's general fund.

3. Any project which converts an historic or potentially significant structure for adaptive reuse as a revenue-generating commercial enterprise or affordable housing project meeting specific general plan targets for affordable housing production and cultural resource preservation.

4. Any project which meets 50% or more of any Items 1-2 of the above criteria (e.g., 50 new permanent jobs, $50,000 in projected new annual sales tax revenues, $50,000 in additional tax increment revenue) may be considered, on a case-by-case basis, for some level of impact or processing fee reduction, up to a maximum of 30 percent reduction. i In Excess of two (2)
ii In Excess of (2)
iii Excluding one (1) change within three (3) months of initiating service at no charge or exchanging a cart of a larger size to a smaller one.
iv After four (4) at no charge
v After one (1) at no charge

Page 137 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
1 Table of Contents
Comprehensive Fee Schedule
(Excludes Water and Sewer Utility Fees)
Summarized from Resolution No. 23-63
and Amended by Resolution No. 24-22 and Resolution No. 24-26 Resolution No. 24-XX
(Effective July 1, 2024)
Page
Animal Control Fees 22
Annexation Processing Fee 9
Appeals 9
Billing 3
Building Permits 9
Division of Land Filing Fees 4
Environmental Filing Fees 6
Exemption of Fees 3
Fee Reduction for Economic Development Projects 23
Fire Department Fees 17-22
Hardships 3
Improvements, Plan Checking & Inspection Fees 9
Land Use Filing Fees 4-6
Late Payment Charge 3
Old Town La Verne Merchant Parking Permit 8-9
Other Fees 22-23
Other Fees and Charges for Service 3
Other Professional Services 7-8
Parking Mitigation Development Impact Fee 8
Payment of Business License Fees and Old Town 3
-Business Improvement District
Police Department Fees 17-18
Precise Plan Filing Fees 6-7
Public Art in Lieu Fee 8
Public Works Fees 9-10
Rates, Fees, Charges & Conditions of Service 11-12
Records 3

Page 138 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
2 Refuse and Recycling Collection Service Charges 12-16 Regulatory Permit Filing Fees 21-22
Revisions 3
Sewer Service Charges 17
Street Vacations 9
Storm Drain Facilities Development Impact Fees 10
Time and Material Deposits 3
Underground Utilities Fee 10-11

Page 139 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
3 TIME AND MATERIAL DEPOSITS – Certain types of deposit projects will be billed on a time and material basis including applicable administrative overhead.

Project costs include City Attorney, City Staff, City Engineer, City Landscape Consultant and other fees including overhead costs for staff and contract personnel. All deposit fees shall be due and payable immediately upon presentation of billing statement by the city. All deposited fees not used to process and manage the application shall be returned after receipt and payment of final project-related bills. Staffs billing rates and equipment charges are established periodically by Administrative Regulation (AR) of the City Manager.

BILLING – Failure to pay all charges invoiced within thirty (30) days of the date of invoice shall be considered a sufficient cause to stop processing until full payment is made. The City will accept only cash, cashier’s checks, or bank checks for payment. Work on the deposit project will not commence until payments have cleared the bank and funds have been transferred to the City. Projects shall not be deemed approved until all City fees have been paid in full.

LATE PAYMENT CHARGE – Outstanding balances that are not paid in full within twenty-five (25) days after the statement is rendered shall accrue a late payment fee of one percent (1%) per month.

REVISIONS – Fees set forth for plan check and development review shall be for the initial application and one (1) revision. Additional revisions submitted by the applicant shall be accompanied by an additional filing fee equal to one-half of the initial fee. Changes after approval, if by a new applicant, shall be subject to the entire applicable fee.

RECORDS – Records of deposit projects are available by contacting the City. Project deposit updates or closing out of projects shall be accompanied by project summary sheets, detailing costs of staff time, City Attorney, City Engineer, City Landscape Consultant, and other consultation charges.

HARDSHIPS – Fees shall be paid in full for all development projects. The City recognizes that in unique and special circumstances financial hardship may preclude the full payment of fee prior to application for permits. In such cases, the applicant shall apply for a payment deferral agreement with the City Manager.

In no case shall the fees be waived or partially paid when the project is completed. The applicant shall state in writing the reasons for deferral. The City manager shall inform the Community Development Director and Finance Officer in writing of the fee deferral and reasons for the deferral. In no case shall the City Manager permit less than half of the fee to be initially paid.

PAYMENT OF BUSINESS LICENSE FEES AND OLD TOWN BUSINESS IMPROVEMENT DISTRICT FEES FOR REMOTE POINT OF SALE BUSINESSES – The City Manager, at his/her sole discretion, may credit sales tax received by the City from a remote point of sale business in payment of that business’s Business License Fee imposed by Chapter 5.12 of the La Verne Municipal code, and, if the business is located in the Old Town Business Improvement District, may make payment from that businesses sales tax proceeds of the DBID fee imposed by Ordinance No, 720 A “remote point of sale business” is a business that satisfies all of the following: (a) identifies the city as its point of sales for its retail sales, (b) does not maintain its sales inventory in the City; (c) generates taxable sales of no less than $40,000 per square feet of its sales office in the City: and (d) has generated a minimum of $50,000 of sales tax revenues to the City in the previous calendar year.

In adopting these fees and charges, the City believes that the fees and charges set forth herein fully comply with all applicable laws. Any person who disputes the validity of any fee or its application to his or her own case shall first file a written appeal with the office of the City Manager, who will review the matter and render a decision. The decision of the City Manager is subject to appeal to the City Council, whose decision is final.

OTHER FEES AND CHARGES FOR SERVICE – Applicants should be aware that they may be subject to other fees and charges for service established periodically by Administrative Regulation (AR) of the City Manager or by Ordinance as contained in the La Verne Municipal Code.

EXEMPTION OF FEES – Where it is verified by the City Manager, or appropriate department head after approval from the City Manager, that the City is the applicant or party to be charged or has hired a contractor to do a city project, fees will be waived. Additionally, the City Manager shall have the authority to waive fees up to $1,000 for local non-profit or community-service projects where the project is a benefit to the community.

DIVISION OF LAND FILING FEES – Items in this category identified with an "initial deposit" are charged on a time and materials basis.

Page 140 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
4 1. Subdivisions:

Tentative Maps Initial deposit of $2,000.

Final Maps Initial deposit of $2,000, plus $35 per lot, excluding lots to be deeded to the City. If the Final Map is not submitted in digital format, a data conversion fee of $150 plus $10 for each additional lot over 5 is required.

2. Parcel Maps:

Tentative Maps Initial deposit of $1,000
Final Maps Initial deposit of $800, plus $35 per lot, excluding lots to be deeded to the City. If the final map is not submitted in Digital format. a data conversion fee of $150 is required.

3. Lot Line Adjustments, $1,000 initial deposit plus $35 Lot Mergers, and per lot prior to merger or reversion.

Reversions to Acreage

4. Lot Tie & Covenant Agreement. $250 fee

5. Records of Survey Initial deposit of $500

6. Map Extensions Initial deposit of $250

7. Assessment Apportionment Initial deposit of $1,000
for Assessment Districts under the
“Improvement Act of 1915”

8. Conditions, Covenants & Initial deposit of $1,500
Restrictions (C.C.& R's) Review

9. Certificate of Compliance $250 fee

10. Housing Development $1,500 per new residential unit in projects Impact Linkage Fee for of three or more units for which purchase Affordable Housing or rental value exceeds estimated affordability at the current County median income level as determined by the Community Development Department. This fee shall apply
to all residential projects authorized by a tentative map, final map, or non-subdivision precise plan approval for the construction of new units granted after July 1, 1993.

11. Affordable Housing In Lieu Rate determined by the City Manager and Community Development Director based on the size of the project and estimated cost to locate units elsewhere in the City.

LAND USE FILING FEES – Items in this category identified with an "initial deposit" are charged on a time and material basis.

1. General Plan/Zoning Amendment Initial deposit of $2,000

2. Zone Change Initial deposit of $2,000

3. Specific Plan (new and amendments) Initial deposit of $2,000

4. Variance Initial deposit of $2,000 for multi-family residential uses in excess of two dwelling units per lot; initial deposit of $750 for second residential dwelling unit per lot and/or duplexes $2,000 deposit – all nonresidential uses
$1,500 00 deposit for single family residential dwelling uses

5. Minor Exceptions $300 fee nonresidential
$100 fee residential
6 Conditional Use Permits
a. Residential Initial deposit of $2,000 for multi-family residential uses in excess of two dwelling units per lot
Initial deposit of $1,500 for second residential
dwelling unit per lot and/or duplexes
$1,500 deposit for large family day care (9 –14 children) $1,500 deposit per lot for all other conditional uses
in single family residential dwelling zones
b. Commercial, Industrial, $2,000 deposit

Page 141 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
5 Institutional $1,500 deposit for CUP amendment

7. Master Plan Review $2,000 deposit for new and amendments

8. Home Occupation Permit $50 fee

9. Development Agreement Initial deposit of $2,000

10. Classification of Use Initial deposit of $500

11. Zoning Certifications $125 fee for letter

12. Feasibility Reports $250 fee

13. Special Event Permit $150 fee plus $250 refundable cleanup deposit, subject to adjustment by the Community Development Department.
$25 fee for local (La Verne based) nonprofit organizations and no clean up deposit. $50 fee for other nonprofit
organizations. Public Works fees and/or an Entertainment permit fee may also be applicable. Additional deposits may be required for public safety review and inspections.

Applications that are submitted within 7-45 days of the event will be charged a fee of $200 for expedited review.

This expedited review fee is not subject to waiver or refund.

Applications submitted less than 7 days prior to event will not be considered. If an application is denied but the event is still held, the applicant will be responsible for the payment of all costs associated with the City’s response to the denied event.

14. Use and Occupancy Permit $225 fee for occupancies greater than or equal to 2,000 square feet gross floor area; $125 fee for all others
15 State mandated A five percent (5%) fee is applied to the Planning Fee Building Permit Fee for all new construction including additions and remodels. This fee is collected upon the
issuance of the Building Permit. This fee does not apply to Mechanical, Plumbing, Grading, Electrical, Sewer or
Occupancy
State mandated “green” building
fee per S.B. 1473
Permit Valuation Fee
$1 – 25,000 $1
$25,001 – 50,000 $2
$50,001 – 75,000 $3
$75,001 – 100,000 $4
Every $25,000 or fraction
thereof above $100,000
Add $1

16. General Plan fee A four percent (4%) fee is applied to the building permit fee for all construction to maintain and update the La Verne General Plan.

17. Performance & Completion Deposit $5,000 minimum, plus additional as required to ensure project completion and cleanup. This deposit is only
collected as necessary, and with concurrence of applicant, to permit City consideration of temporary utility release and/or temporary occupancy for projects which have
uncompleted improvements or requirements not related to health and safety.

18. Interim Use Permit Initial deposit of $2,000

19. Reasonable Accommodations Fee Initial Deposit of $1,500

20. Small Cell Design Review Initial Deposit of $500

21. Technology Fee A two percent (2%) fee is applied on all Building Permits to cover permit software licensing, plan review software
licensing, and additional technology costs associated with permitting, plan review, and inspections.

Page 142 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
6 ENVIRONMENTAL FILING FEES – Items in this category identified with an "initial deposit" are charged on a time and materials basis

1. Categorical exemption $25 flat fee

2. Initial study review Initial deposit of $2,500 (includes County filing and posting fees)

3. Full Environmental Initial deposit of $5,000 (includes County Impact Report filing and posting fees)
PRECISE PLAN FILING FEES for Precise Plan processing not described in the categories shown, the Community Development Director may assign a flat fee of $100 or an initial deposit as determined necessary to recover costs.

Precise Plans requiring an "initial deposit" are charged on a time and materials basis. See Page One of this Resolution for further explanation.

Community Development Department Applications

1. Two-story room additions, other additions, and accessory structures requiring precise plan review, and accessory dwelling units - $0.50 per square foot of new gross floor area (including garages, porches, and utility structures). In no event shall the minimum fee be less than $75.

2. Multi-family patios, room additions and accessory structures - $75 fee.

3. Single family home - not in conjunction with subdivision development – 50 cents per square foot of gross floor area.

4. Commercial and industrial minor interior and exterior remodels and alterations where no DRC review required - $350 fee.

5. Institutional minor interior and exterior remodels where no DRC review required - $250 fee.

6. Landscape Renovation and Landscape Concept Plan Review * Single Family Residential - initial deposit of $250
* Multi Family Residential - initial deposit of $1,000
* Non Residential - initial deposit of $1,000 deposit

7. Solar collectors – Non-residential - $150 fee

8. Oversized antenna review – $50 fee

9. Tree removal permit - $500 deposit (includes actual cost for professional services, e.g. landscape architect, arborist)

10. Residential exterior alterations, with no increase in square footage, visible from street or public place - $50 fee

11. Historic Preservation Review - Initial deposit of $500 on projects that require the use of an Historic Preservation Architect to assist with the review.

12. Personal cannabis propagation permit application fee - $25

13. Entertainment Permits: $500 Initial Deposit
a. Annual Fee $120

14. Over the Counter Planning Approvals
a. Residential Additions or Accessory Structures that are not Patio Covers (not visible from public right of way) $60
b. Rear Patio Covers (not visible from public right of way) $30 c. Signs $30
d. Commercial/ Industrial Tenant Improvements $30
Development Review Committee Applications

1. Single family homes – In conjunction with subdivision development – Initial deposit of $2,000.

2. Multiple family development – Initial deposit of $2,000.

3. Commercial, office and industrial – Initial deposit of $2,000.

4. Institutional – Initial deposit of $2,000.

5. Official – Initial deposit of $2,000, except official projects determined to be of benefit to the public may be exempt from processing fees, as verified by the City Manager and the Community Development Director.

6. Commercial, industrial, and institutional minor interior and exterior remodels – Initial deposit of $500 Sign Precise Plans

1. Master sign programs:
* Initial Master Sign Application – $750 deposit
* Amendments – $250 deposit

2. Ground sign not part of a Master Sign Program – $250 fee. All building permits for ground sign construction and installation shall be accompanied by a cash deposit of $750 to ensure completion of the sign. Following release of the sign by the City, the deposit shall be refunded to the applicant.

3. Non-illuminated wall sign not part of a Master Sign Program (DRC not required) – $50 fee per sign.

Page 143 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
7 4. Illuminated wall sign not part of a Master Sign Program (DRC not required) – $75 fee per sign plus electrical permit.

5. Subdivision sign – Initial deposit of $500 per sign.

6. Illuminated window signs – $20 fee per sign (plus electrical permit)

7. 8. All signs requiring DRC approval - $350 deposit
Landscape Plan Check and Inspection Fees

1. Residential Plan Check – Initial deposit of $200.

2. Commercial/Industrial/Office – Initial deposit of $1,000.

3. Residential tract and planned developments – Initial deposit of $1,000.

4. Landscape Inspection Fees – Initial deposit based on the following formula: Five percent (5%) of that portion of the costs of improvements which are $50,000 or less. One and one-half percent (1-1/2%) of that portion of the costs of improvements which exceed $50,000.

No Charge Applications

1. Zoning information.

2. Preliminary consultations not exceeding three hours

3. Banner Sign Permit.

4. Heritage tree pruning permit.

5. Minor alterations to an existing ground sign or monument sign, such as a panel change out.

6. Temporary Storage Container Permit (not requiring CUP)

OTHER PROFESSIONAL SERVICES

1. Engineering & Planning – Consultation prior to filing formal application: $500 deposit after three hours of consultation

2. Planning Department Publications – Public handouts and summaries are available at no charge. Other publications not listed below are charged at the estimated cost of reproduction. a. Environmental Guidelines $2.50 each
b. General Plan Background Report $30
c. Complete General Plan $50
Individual General Plan Items:
1) color map and summary $5 each
2) individual elements $10 each
3) text including map $50 each
4) environmental impact report $25 each
d. Master Sign Programs $5 each
(over 10 pages)
e. Ordinances $2.50 each if not available as free handout .
f. Specific Plans
1) Foothill Blvd. $25 each
2) Arrow Corridor $20 each
3) Lordsburg $15 each
4) Out of print plans Actual cost of duplication
g. Zoning Map $5 each
h. Zoning Ordinance $15 each
i. General Plan Map $5 each
j. Environmental Impact Reports Actual cost of duplication l. Other Documents 15¢ per copy

3. Records Management Charge: Charge for microfilming and/or digital recording of all applicable records in connection with planning and building division approvals. Fee to be charged as follows:
a. Deposit projects (flat fee $150
charged at time of filing)

Page 144 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
8 b. Non-deposit projects, except $150
single-family construction
and second units on single-family lots.
c. New single-family units on $55
single-family lots; remodels, additions,
accessory structures and
accessory dwelling units on single-family lots.
d. Applications with base fees No charge
of $100 or less

4. Mailing Labels & Radius Map (Applicant Option) $175, up to 100 labels and 50 cents each additional label, does not include postage.

5. Digital Conversion of Plans (Applicant option) All development application plans (site plan, floor plan, elevations, etc.) must be accompanied by a digital (pdf) copy or the applicant can pay $2 per sheet for the City to convert plans to pdf.

6. Fence Review Fee $30, plus building permit and public works fee if applicable.

This fee applies only to individual fence proposals which are not part of a larger project or other in-process application.

7. Notary Fee As set by State law

8. Mills Act Historic Preservation $500 fee
Agreement
PUBLIC ART IN LIEU FEE – All new non-residential projects require the contribution of a public art piece valued at 0.5% of the project valuation for those projects valued under $500,000 and 1% of valuation of projects valued at $500,000 or greater. In the event that the City agrees to accept an in lieu payment for the required public art, a cash payment based on the formula above would be required to be paid to the City into a dedicated public art fund.

PARKING MITIGATION DEVELOPMENT IMPACT FEE – Applies to properties pursuant to Section 18.76.150 of the La Verne Municipal Code where sufficient off-street parking is not available. Payment of a one-time in-lieu fee shall be permitted in the amount of $1,000 per parking space, as determined by the Community Development Department, for required spaces that cannot be supplied on-site (subject to availability and City Manager approval).

OLD TOWN LA VERNE MERCHANT PARKING PERMIT – A $75 permit fee is required for each Merchant Parking Permit issued for each calendar year. As of July 1st of each year, the fee shall be 50% of the established fee for that year until the end of the calendar year for any new permits that are requested. Permits are distributed at the discretion of the City Manager on a yearly basis with a maximum number of permits available each year as outlined in Administrative Regulation No. 117.

STREET VACATIONS – Initial Deposit of $2,000
ANNEXATION PROCESSING– Initial deposit of $2,500
APPEALS– To appeal to the City Council decisions of the Community Development Director, Planning Commission, Development Review Committee, and other administrative staff actions, a fee of $150 shall be required plus mail and public notice costs as estimated by the City Clerk for resident appeals. Appeals by nonresident applicants and other nonresident parties shall be in the amount of one half of the original filing fee.

IMPROVEMENTS, PLAN CHECKING, AND INSPECTION FEES – To be paid at the time plans are submitted.

1. Improvement Plan checking based on the estimated cost of improvements. Minimum fee shall be $110. a. Five percent (5%) of that portion of the cost of improvements which is $50,000 or less. b. One and one-half percent (1-1/2%) of that portion of the cost of improvements which exceeds $50,000.

2. Inspections, based on the estimated cost of required improvements. Minimum fee shall be $110; a. Five percent (5%) of that portion of the cost of improvements which is $50,000 or less. b. One and one-half percent (1-1/2%) of that portion of the cost of improvements which exceeds $50,000.

Page 145 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
9 BUILDING PERMITS – Building permit and plan check base fees shall be established at two times the prevailing Los Angeles County fees as amended from time to time by ordinance of the City Council. The prevailing Los Angeles County fee shall be established Per Title 26, Section 107 of the County of Los Angeles Building Code.

Projects with valuations over $10 million are eligible for a reduced multiplier subject to an agreement between the City and the project applicant with City Council consent.

PUBLIC WORKS FEES

1. Staff billing rates and equipment charges are established periodically by Administrative Regulation (AR) of the City Manager.

2. Public Works Permits:

Over-limit and house moving permit fees:

Annual fee - $90
Single trip fee - $16
Standard inspection fees:
1) New residential, and new $110 plus $20 for each
and existing industrial, inspection in excess of two
commercial, professional
and institutional construction.
2) Double permits and inspection fees
shall be charged for failure to obtain
required permits prior to commencing
work within the public right of way.

Deposits (refundable):
1) An amount equal to the estimated value of work to be performed. 2) Yearly Deposit $3,000/year – Any damages to be recovered from deposit.

3. Barricades/Deposits K-Rail Rental Rates:
a. Type 1 (Standard/Single Panel) at $40 /deposit $2/day each b. Type 2 (Standard 2 Panel/A-Frame) at $50 /deposit $3/day each c. Fee to make ready barricades if $10 minimum charge – 1 st 10 units picked up by user. $1 per unit over 10
d. Fee if delivered to user $30
(no ready fee applies)
e. Replacement Cost
(if not returned) Actual cost plus 15%

4. Damage to City Property or Vehicles Actual repair/replacement charges + 20% to cover loss of use, temporary replacement of vehicle or other city property and administrative costs

5. Signs – The following fees include materials and labor to install any traffic control sign as required. All regulatory, warning and advisory signs shall be installed by the City. a. Street name signs $300 per installation
b. Traffic control signs $250 per installation
c. Directional signs $250 per installation

6. Public Works Department Publications – The following documents are available at the stated fees. All other publications not listed below, or portions of the listed documents, are charged at the cost of reproduction.
a. Standard contract documents $50 for entire publication (does not include copyrighted documents)
b. Notice inviting bids $50 minimum or actual cost bid packages

Page 146 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
10 c. Blue prints $3 per page or actual cost from outside printer d. Standard Plans $0.15 (15¢)/page
e. Plotter prints $15 per page

7. NPDES Inspection Fee A fee shall be assessed to all businesses as defined by the L.A. Regional Water Quality Control Board for annual
inspections in compliance with the National Pollutant
Discharge Elimination System (NPDES) permit requirements.

The annual fee of $250 shall be assessed at the time of the annual business license renewal, which will include the first inspection and one follow up inspection. The fee for additional inspections (follow up inspections) shall be $125 per
inspection, not to exceed $750.

8. Form Completion All forms requested to be completed by the city shall be subject to a fee of $25 per form. Forms shall be completed in two (2) business days from the day submitted.

STORM DRAIN FACILITIES DEVELOPMENT IMPACT FEES

1. Residential: Upon application for a $175 for each one-tenth (10) gross acre or fraction building permit for construction of a thereof; provided that maximum fee for single- new building (or an addition and/or family residence shall not exceed $350 remodel with a valuation of $75,000) to
be used for residential purposes

2. Nonresidential: Upon application for $350 for each one-tenth (1/10) gross acre or a building permit for construction of a fraction thereof new building (or addition and/or remodel
with a valuation of $75,000) to be used
for nonresidential purposes

UNDERGROUND UTILITIES FEE

1. Residential: Upon application for a $175 for each one-tenth (1/10) gross acre or building permit for construction of a fraction thereof; provided that maximum fee new building (or an addition and/or for single family residence shall not exceed remodel with a valuation of $75,000) $350
to be used for residential purposes.

2. Nonresidential: Upon application for $350 for each one-tenth (1/10) gross acre a building permit for construction of a or fraction thereof new building (or an addition and/or
remodel with a valuation of $75,000) to
be used for nonresidential purposes.

RATES, FEES, CHARGES AND CONDITIONS OF SERVICE FOR THE FURNISHING OF WATER BY THE

CITY OF LA VERNE
Water System Connection Fee: Any person applying for water service to one or more parcels of land which have not previously received water service directly through a service connection from the City of La Verne specifically for such parcel shall, before such application is approved, pay to the City water system connection fees as follows. In the event that a customer requests to upgrade to a larger service after payment of impact fees and/or service connection, the customer shall be responsible for the difference in impact fees included in section 2a, 2b, 2c, 2d, and 2e:
a. Unit Connection Fee – Residential: The following fee shall be charged for each residential unit (as defined in Section 9) connected to the system:

Single family dwelling unit $385
Townhouse or condominium, each unit 330
Apartment, duplexes and triplexes, each unit 330
Mobile homes, per space 275
Motels, per unit 135
Rooming houses and convalescent homes, per unit 110

Page 147 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
11 b. Unit Connection Fee – Nonresidential, Commercial Institutional or Industrial: The following fee shall be charged for each meter connected to the system which serves nonresidential, commercial, institutional or industrial user:
3/4-inch $ 385
1-inch 495
1 1/2-inch 610
2-inch 825
3-inch 1,050
4-inch 1,270
6-inch 1,545
8-inch 1,875
10-inch 2,205
12-inch 2,755
c. Acreage Connection Fee – Residential: For each one-tenth (1/10) usable gross acre or fraction thereof, the fee shall be as follows:

All Zones $670
d. Acreage Connection Fee – Nonresidential, Commercial Institutional or Industrial: For each one- tenth (1/10) usable gross acre or fraction thereof, the fee shall be as follows:

All Zones $1,200
e. Post Miramar Connection Fee:
1) Metered Service: For each water meter connected to the City water system, the fee shall be equal to the amount shown in the table below for the size of meter, multiplied by the number of months which have passed since October 1, 1986. Post Miramar connection fee shall be paid at the time of installation of the meter.

Size of Meter Monthly Charge
5/8 & 3/4-inch $ 8.00
1-inch 8.00
1 1/2-inch 25.00
2-inch 40.00
3-inch 62.50
4-inch 125.00
6-inch 300.00
8-inch 375.00
10-inch 500.00
12-inch 625.00
2) Private Fire Service: For each private fire service connected to the City water system, the fee shall be equal to the amount shown in the table below for the size of connection, multiplied by the number of months which have passed since October 1, 1986. Post Miramar connection fee shall be paid at the time of installation of the service and shall not exceed a maximum of $10,000.

Size of Connection Monthly Charge
2-inch $ 12.00
3-inch 18.75
4-inch 37.50
6-inch 90.00
8-inch 112.50
10-inch 150.00
12-inch 187.50
f. Usable Acreage: Usable acreage is all land other than that which is unsuitable for development because of the nature of the terrain and is subject to legal restriction limiting its use to unirrigated natural open space in perpetuity. Such restriction shall be reviewed and approved by the City of La Verne and shall be determined on a parcel-by-parcel basis. The restriction shall be by dedication of fee or easement to the Homeowners Association, the City, or other government agency. Acreage fees are due and shall be paid upon recordation of final map. Provided, however, that parcels for which no acreage fees were previously paid, fees shall be paid prior to issuance of building permits.

Page 148 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
12 Usable acreage shall not include land which is developed by the developer as a public park, and dedicated to the City of La Verne.
g. Frontage Fee: For each parcel of land fronting on a street that contains an existing water line with adequate capacity for the subject parcel a fee of $15 per front foot shall be charged. For each parcel connecting to a water main in Foothill Boulevard or any other street where the two sides of the street are served from separate pressure zones, the charge shall be two times the amount shown. 1) Fees shall be calculated as of the date of payment. However, if payment is made more than sixty (60) days before anticipated connection, as determined by the City Manager, fees shall be recalculated as of sixty (60) days before such anticipated connection and any increase shall be due and payable before connection.
2) The City is empowered to negotiate contracts with individuals, firms or corporations relative to the extension or enlargement of water facilities and/or relative to methods of reimbursement to the City. Credits may be given against the fees set forth herein where property owners have constructed water facilities or where property has been assessed for like improvements. h. Abandonment of Services. When an existing service has been shut off continuously or otherwise terminated for a period of two (2) years or more, it shall be presumed to be abandoned. Any subsequent service shall be treated as a new service and subject to all applicable fees including acreage and frontage fees of this resolution.

REFUSE AND RECYCLING COLLECTION SERVICE CHARGES

1. Daily, Monthly or Bimonthly Service Fees. The fees or charges adopted herein in sections 1-4 are imposed as a condition of service by the City's franchised waste hauler. The franchise agreement includes provisions for rate increases detailed in the current contract with Waste Management.. This fee or charge is not imposed upon real property or upon a person as an incident of property ownership. New fees reflecting State mandates were approved at the Proposition 218 Hearing held on June 21, 2021.

2. Residential Program Refuse Collection Charges. In compliance with state mandates, recycling and organics recycling programs have been implemented. Costs for these efforts are included in the rates listed in this section. Residential properties receive a recycling and an organics recycling cart, that are included in these rates.

Rates are based on:
-Each single-family dwelling unit, whether one or more are on a single lot. -Each unit in a mobile home park, duplex, or other multiple dwelling unit. -Each property in areas where residential carts are available and necessary to meet solid waste compliance.
-Every four (4) guest rooms or a fractional number thereof, in any hotel, motel, rooming or lodging house.

From July 1, 2024 through June 30, 2025-monthly fee, billed bi-monthly (a) 35 gallon container $28.81 (b) 64 gallon container $31.41 (c) 96 gallon container $34.16 (d) Additional 96-gallon trash container $11.15 (e) Each additional 64-gallon recycling cart i $10.58
(f) Each additional 64-gallon organics recycling cart ii $14.75 (g) Mechanized container size exchange iii $20.89 (h) Bulky goods collection iv $34.78
(i) Extra pick up $27.84 (j) Contamination Fee $21.46 (k) Replacement of damaged or lost mechanized container v $69.58 i In Excess of two (2) ii In Excess of (2) iii Excluding one (1) change within three (3) months of initiating service at no charge or exchanging a cart of a larger size to a smaller one. iv After four (4) at no charge v After one (1) at no charge

Page 149 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
13 3. Commercial and Multi Family Program Refuse Collection Charges In compliance with state mandates, recycling and organics recycling programs have been implemented. Costs for these efforts are included in the rates listed in this section. Due to the individuality of properties, there are many options available to the La Verne community and shared bins are allowed in some cases. Gray shaded options are unavailable at the time of this writing, but remain in this schedule, in the case that services become available.

From July 1, 2024 thru June 30, 2025-monthly fee, billed monthly (a)
(b)

Page 150 of 252 ends

Tras h
Frequency of Pick Up per Week
Bin Size 1X 2X 3X 4X 5X 6X
3 Yard Split Bin $ 224.53 $ 437.78 $ 656.67 $ 875.56 S l 094 45 S l 313 3A Trash & Recvcle Onlv

1.5 Yard Bin $ 149.72 $ 265.1 1 $ 340.51 $ 444.00 $ 547.94 $ 696.08 Each Additional Bin $ 91.95 $ 148.52 $ 183.85 $ 242.81 $ 301.70 $ 386.62 Extra o :,o I In Charae $ 66.20
2 Yard Bin $ 162.34 $ 291.01 $ 373.51 $ 532.32 $ 602.16 $ 764.79 Each Additional Bin $ 148.74 $ 248.60 $ 271.09 $ 322.84 $ 374.83 $ 452.56 Extra Pick Uo $ 82.04
3 Yard Bin $ 191.64 $ 345.25 $ 434.75 $ 571.51 $ 708.20 $ 901.50 Each Additional Bin $ 139.05 $ 223.91 $ 278.12 $ 370.07 $ 461.99 $ 591.61 Extra Pick Uo $ 88.67
4 Yard Bin $ 218.87 $ 394.75 $ 498.43 $ 654.01 $ 814.28 $ l 040 5Z Each Additional Bin $ 169.70 $ 275.80 $ 341.79 $ 452.56 $ 565.69 $ 728.36 Extra Pick Uo $ 103.22
6 Yard Bin $ 279.63 $ 505.49 $ 630.43 $ 830.70 $ l 066 Ol $ l 321 05 Each Additional Bin $ 238.05 $ 384.22 $ 471.40 $ 627.00 $ 784.91 $ 1 nn~ ~7 Extra Pick Uo $ 152.82
Recvcli nq
Bin Size 1X 2X 3X 4X 5X 6X
96 Gallon Cart (per cart-maximum 3
carts\ $ 26.07 N/A N/A N/A NIA N/A
$ $ $
2 Yard Bin $ 36.67 $ 75.48 113.22 150.96 188.69 N/A
$ $ $
3 Yard Bin $ 55.01 $ 113.21 169.81 226.43 283.05 N/A
$ $ $
4 Yard Bin $ 73.35 $ 150.95 226.43 301.89 377.38 N/A
$ $ $
6 Yard Bin $ 110.02 $ 226.41 339.66 452.85 566.05 N/A
Extra Pickup $ 88.67
Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
14 (c)
(d)
(e)

4. Miscellaneous Refuse Charges-From July 1, 2024 thru June 30, 2025-billing frequency varies depending on service
(a)
Insta Bin Rates
Temp Bin rental per week $ 36.24
Insta Bin $ 181.21
Extra pick up $ 181.21

Page 151 of 252 ends

Oraanics Rates
Freque ncy of Pick Up per Week
Bin Size 1X 2X 3X 4X 5X 6X
64 Gallon Cart $ 96.76 $ 193.51 N/A NIA NIA NIA
2 Yard bin NIA NIA NIA NIA NIA NIA
Compactor Rates
Frequency of Pick Up per Week
Bin Size 1X 2X 3X 4X 5X 6X
3 Yard compactor $ 446.26 $ 745.78 $ 813.28 $ 968.50 S 1 124 41 s 1 35112 Extra Pickup $ 266.01
Other Commercial Rates
Resume Fee $ 47.80
Lockina Bin Rate $ 14.58 Monthlv oer bin
Replacement Lock $ 36.46
Replacement Key $ 6.62
Contamination Fee $ 46.40
Commercial Valet
Service $ 30.50 per bin per number of davs of service per week Overaae Fee $ 66.30 per occurrence
Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
15 SEWER SERVICE CHARGES – All sewer services furnished by the City shall be subject to the following charges:
1 Sewer Unit Connection Fees for New Construction and/or Additions:
a. Manufacturing, Commercial, Institutional, Official, and other nonresidential uses:
1) $125 plus $25 per 1,000 square feet or any fraction thereof for ground level building space, plus $7.50 per 1,000 square feet or fraction thereof for building space above ground level. 2) Front footage fee: $15 per front foot
b. Residential Uses:
1) Single family: For each detached single-family residential unit on a single, separate lot – $125.
2) Multiple family, including mobile home parks, for building or buildings under one ownership:
$125 for the first unit; plus $75 for each of the next nine (9) units; plus $30 for each additional unit on one lot or building site.
3) Front footage fee: $15 per front foot

POLICE DEPARTMENT FEES
Staff billing rates and equipment charges are established periodically by Administrative Regulation (AR) of the City Manager.

1. Overnight parking permit -- annual/daily $100 / $5
$50 admin fee
prorated monthly
rate of $4.16

2. Overnight annual parking permit renewal fee $50
(Reapplication required after January 31)

3. Recreational vehicle storage permit $100
- Annual renewal fee $50 for 3 yrs.

4. Non-injury accident report $25
Injury accident report No Charge

5. All other police reports No charge

Page 152 of 252 ends

Roll Off Rates
Haul Rate $ 373.14
Price Per ton $ 71.62
5 ton $ 358.13
Roll off Total $ 731.29
DTN $ 71.62
Trio $ 181.21
Relocate $ 72.50
T emo Roll off rental rate $ 36.24
C & D Haul Rate $ 373.14
C& D Rate Per Ton $ 70.69
Comoactors $ 231.89
Comoactor cleanina fee $ 144.97
Oraanics Haul Rate $ 373.15
Oraanics Rate Per Ton $ 96.16
Recycle Rolloff $ 373.15
Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
16 6. Concealed Carry Weapon (CCW) Permit
a. CCW Administrative Fee $100
b. CCW amendments/Modifications/Card Replacement $10
c. Concealed weapon permit renewal $25

8. Residential burglar alarm permit $50

9. Commercial burglar alarm permit $100

10. False alarm response fees:
a. First 2 responses in any 365-day period No charge
b. Third responses in $75 for each
365-day period response
c. Fourth through all subsequent responses in $150 for each 365-day period response
c. Failure to obtain an alarm permit within thirty (30) days of operation without reasonable cause will result in a $10 per day fee every day thereafter.

11. Copies of color photographs
a. CD ROM: $15
b. Flash Drive (≤32 GB) $20

12. Audio/video tape reproduction of taping $40/half hour

13. Pre-employment Local Criminal History Check $30

14. Location/Address Call History Report $20

15. Massage Permit for Operator $250

16. Firearms sales permit $250

17. Bingo Game Permit Fees:
a. Bingo Permit Fee & Annual Renewal Actual cost
b. Bingo Manager Permit Fee as required by Actual cost
La Verne Municipal Code

18. Service charge for release of impounded vehicles. a. General impound fees (Driver NOT found to be $150
under the influence of alcohol and/or drugs.) NO DUI
b. For vehicles where the driver is arrested for $400
driving under the influence or reckless driving.

Up to $250 fee may be waived if there is no criminal filing

19. Service charge for release of abated vehicles $125

20. Storage of seized vehicle $10/day per vehicle

21. Citation sign-off for persons who
fail to display handicapped placards. $10

22. Citation sign-off fee (nonresidents) $20

23. Second response fee – loud party or noise Actual cost disturbance per L.V.M.C. Section 8.20.050

24. Adult booking recovery fee $210

25. Juvenile detention fee $ 75 per hour
($18.75 per ¼ hour). Billable beginning one (1) hour after parent notification.

26. Jail Trustee acceptance letter $30

27. Inmate worker fees
- full-time inmate worker $25 per day plus
$250 fee@ booking

- part-time furlough workers $60 per day plus
$250 fee @ booking

28. Live-Scan applicant fingerprinting $20 per process plus actual cost charged by
DOJ and/or FBI

29. Rolled ink fingerprinting $20 for 1 card
$5 each add ’l card

30. Requests for Traffic/Parking Enforcement $175 per request. on Private streets. Requesting Party shall City preparation provide to the City labels or preaddressed of address labels, envelopes to affected residents. if desired, per the
fees set forth @
#E-4 of this Reso.

Page 153 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
17 31. Police clearance letter $15

32. Firearm Storage Fee $10 per month

33. Firearm Release Fee $50 per case/incident
Shall apply to all firearms seized, stored or impounded.

Any & all fees shall be waived if firearm is stolen
or if surrendered for destruction. All fees due upon release.

34. Electric Utility/Security Cart Inspection Fee (per Reso. No. 09-05) $10 per cart

FIRE DEPARTMENT FEES
. Staff billing rates and equipment charges are established periodically by Administrative Regulation (AR) of the City Manager.

1. Annual Business Fire Inspection Fee:

New Business/Annual Inspection requiring operational permits $124 for first hour Conducted by Prevention Staff. thereafter charged
½ hour increments
Prevention First Re-inspection No Charge
Each additional Re-inspection $124 for first hour
Thereafter charged in ½
hour increments
Businesses occupying 5,000 – 50,000 square feet 2 Hours($248) Businesses occupying 50,000 – 100,000 square feet 3 hours ($372) Businesses occupying 100,000 or more square feet 4 hours ($500) Engine Company Inspections not requiring operational permits $195 for first hour engine company time, thereafter,
charged in ½ hour
increments
Engine Company -First Re-inspection No Charge
Each additional Re-inspection $195 for first hour
Thereafter charged in ½
hour increments

2. Annual Operational Permit
All businesses with conditions, processes or materials that require an annual fire permit as per the California Fire Code (CFC) Sections 105.1.1 through 105.7.18 shall pay the following General Permit fee(s):

First permitted use $332
Each subsequent permitted use $166
Failure to pay permit fee within 30 days of receiving renewal letter 50% Additional or permit application.

3. Special Activities Fees

Page 154 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
18 Hazardous event/operations -- Upon agreement $210 minimum/ by both the Fire Chief and City Manager, hourly
special activities fees can be waived.

This fee excludes the City's annual
4th of July fireworks show. (City Sponsored Event)
Fireworks Display/Permit Permit $322 + Stand-by
Fee (see hourly rates)
Special Event inspection-Christmas tree lots, Pumpkin Patches etc. $248 Tank installation and/or removal, underground, $248
flammable liquids
Special Event – Open flame vendors (include permit and inspection) $124

4. Fire Protection Systems Plan check and Inspections Fees:

The Fire Protection System - Fire Plan Check process is applicable when a fire protection system is installed, rehabilitated, or modified.

To start the process, the applicant must visit the Building Division office located at City Hall complete the Fire application, submit 3 copies of the fire plans, and pay the application fee. The regular plan check turnaround time is 14 business days from the date plans were submitted.

Fire plans are reviewed by a fire consultant to ensure compliance with the California Fire Code, California Building Code, and applicable adopted standards. After the initial consultant review, the applicant is notified to pick-up the approved plans and/or return the plans for subsequent consultant review. Once fire plans have been approved by the consultant and the Community Risk Reduction Bureau, the applicant will pay the applicable permit cost (B-F below) and Inspection fees, consultant fees, and then pick-up the finalized building plans (that include a stamp from the consultant and the Community Risk Reduction Bureau). Once all costs are paid, the applicant will receive a copy of the Fire Protection System Permit/Job Card. The applicant has 6 months to complete the work/project and schedule required inspections with the Community Risk Reduction Bureau (the permit fee covers most of the inspection costs). If additional inspection time is required, the Miscellaneous Fee (As-Needed Fire Inspection) is applicable.

The permit fees listed in B- F include up to 3 inspections. If additional inspection time is required, the Miscellaneous Fee (As-Needed Fire Inspection per hourly rate) is applicable. a. Application Fee with each permit (14 Business days) $62 TYPES OF FIRE PROTECTION SYSTEM PERMITS – Per system:
b. FIRE ALARM: Inspections + Consultant
Fee - Per System

1. Alarm System (New) $372 + Consultant Fee,
Per System

2. Alarm System (Tenant Improvement) $372 + Consultant Fee, Per System
c. FIRE SPRINKLER SYSTEM:

Inspections + Consultant
Fee - Per System

1. Fire Sprinkler New $372 + Consultant Fee,
Per System

2. Fire Sprinkler Tenant Improvement $372 + Consultant Fee, Per System

3. Fire Sprinkler Tenant Improvement w/Calculations $372 + Consultant Fee, Per System

4. Additional Riser/per floor/same Building $372 + Consultant Fee, Per system

Page 155 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
19 5. Fire pump $372 + Consultant Fee,
Per System

6. Fire Underground System $372 + Consultant Fee,
Per system

7. Standpipe System $372 + Consultant Fee,
Per System

8. High Pile Storage $372 + Consultant Fee,
Per building
d. ENGINEER SYSTEMS: Inspections + Consultant
Fee - Per System

1. Hood and Duct suppression system, Clean Agent, ETC. $372 + Consultant Fee, Per System

2. Special Systems/Spray booth $372 + Consultant Fee,
Per System
e. HAZARDOUS MATERIAL PLAN: Inspections + Consultant
Fee - Per System

1. Hazardous Material Plan Check $372 + Consultant Fee, Per Submittal
f. FIRE DEPARTMENT ACCESS: Inspections + Consultant
Fee - Per System

1. Fire Department Access Plan $372 + Consultant Fee,
Per building

5. New Building / Tenant Improvements Plan check Fess:

The New Building / Modification - Fire Plan Check process is applicable for all construction projects within the City. The process is mostly handled by the Building/Engineering Division; whereas the Community Risk Reduction Bureau is responsible for reviewing plans to ensure compliance with the California Fire Code, California Building Code, and California Health & Safety Code.

To start the process, the applicant must first visit the Building Division located at City Hall and complete a Fire application. Next, the applicant will submit a copy of their Building/Engineering Division application, 3 copy of the building plan, and pay the application fee. The regular plan check turnaround time is 14 business days from the date the plans are submitted.

Building plans are reviewed by a City consultant or Fire Marshal. After the initial city or consultant review, the applicant is notified to pick-up the approved plans and/or return the plans for subsequent consultant review. Once all revisions are finalized, the applicant will pay the applicable Inspection fees, consultant fees, and pick-up the finalized building plans (that include a stamp from the consultant and the Community Risk Reduction Bureau).

The applicant has 6 months to complete the work/project and schedule an inspection with the Community Risk Reduction Bureau. If additional inspection time is required, the Miscellaneous Fee (As-Needed Fire Inspection) is applicable. Note: The Building Inspector will not finalize any project until it has been inspected by the Community Risk Reduction Bureau.

The permit fees listed in section B include up to 3 inspections. If additional inspection time is required, the Miscellaneous Fee (As-Needed Fire Inspection/per hourly rate) is applicable. a. Application Fee with each permit (14 Business days) $62

TYPES OF PLAN CHECK PERMITS
b: Plan Check Types – Per submittal Inspections + Internal Review or Consultant fee

1. Architectural- New per building $372 + $744 or Consultant Fee, Per submittal

2. Architectural – T.I. per building $372 + $496 or Consultant Fee, Per Submittal

3. Architectural/New > 2 Story or $372 + $868 or Consultant R-1/R-2 w/more than 50 units Fee, Per Submittal

Page 156 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
20 4. Architectural – High Rise (Buildings >75ft) $372 + $1736 or Consultant Fee, Per
Submittal

5. Fuel Modification Plan $372 + $527 or Consultant
(Single Family Residence) Fee, Per Submittal

6. Fuel Modification Plan $372 + $899 or Consultant
(Multi Family, Tract, Commercial) Fee, Per Submittal

7. Development Review (CUP, Tract Map, Etc.) $372 + $496 or Consultant Fee, per Submittal

8. Plan Revision/As-builts $372 + $279 or Consultant
Fee, per submittal

6. Other
Inspection Services for which no fee is listed (hourly or consultant) $124 and or consultant.

Arson/Investigator: Billing determined by the Fire Chief See Hourly rate.

Copies of reports and documents 15¢ per page
Cost recovery for Fire Dept. response necessitated $488 per engine co. by negligent; intentional or for alcohol/drug per hour or fraction related acts; cost recovery for Fire Dept. response for thereof. $203 per water removal; cost recovery for Fire Dept. response medical unit per hour for a nonresident vehicle fire, weed abatement or fraction thereof. cost recovery for Fire Dept clean-up spills at accident scenes

7. State-Mandated Inspection Types:

Pre-Inspection- STD-850 Residential Care Facility $155 Final Inspection STD-850 Residential Care Facility $155 Pre-Daycare Facility Single Family Residential, Adult or Child $155 Daycare Facility Commercial Adult or Child $155
School/ Educational facilities (Public and Private) $248 Apartment Building Inspections $124
Medical Facility $248

8. Fire Alarms Fees and Fines:

The first three responses in any 365-day period No Charge For the 4th and each additional response in $488
any 365-day period
Non-Emergency response to residential care $488
facility for caregiver assistance per occurrence

9. HOURLY RATES: (Time and Material)
a. Type of Resource
Fire Chief $210
Fire Marshal $124
CRR Specialist $105
Engine Company $488

10. Fire Safety Equipment Development Impact Fee $385
(Payable upon submission of an application to the City for a building permit in the Hillside Development Area.)
Fire Facilities Development Impact Fee $7,504
On new residential projects in the Hillside Overlay Zone.

Page 157 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
21 11. Emergency Medical Services
The La Verne Fire Department, or its contracted billing service, will bill the insurers of La Verne residents, including Federal health care programs, but only to the extent of their insurance coverage to ensure no "out of pocket" costs. Third party billing is established to provide for the long-term sustainability of the La Verne Fire Department’s Emergency Medical Services and Ambulance transport programs.

Use of back-up ambulance (transport only) $937
Non-emergency ambulance transport $937
Cost of Medical Supplies Actual cost per
current L.A. Co. rates

REGULATORY PERMIT FILING FEES

Processing fee for application $100
Regulatory Permit $100
d. Certificate of Necessity & Public Convenience:

Processing fee for application $50
e. Short-Term Rental Permit (initial application) $100
f. Short-Term Rental Permit (renewal) $35

3. The business of filming and videotaping within the City of La Verne:
a.Daily permit $300

Page 158 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
22 b.Daily rental fee for City-owned
buildings or facilities excluding City
Parks and Recreational Facilities. $500
c. Use of other City services, equipment Actual cost per A.R. and/or personnel

4. Tobacco Retailer’s License Fee $300

5. Other regulatory permits not $15
specifically provided for elsewhere

ANIMAL CONTROL FEES

2. Cat License Fees:
a. unaltered cat - 1 year $10
b. altered cat - 1 year $ 5
c. late application fee for new cat license $10
d. late renewal of cat license $10

4. Food and Care (Per Day):
a. dog $10
b. cat $10
c. small animals $5
d. medium animals $10
e. large animals $40
f. all animals required to be quarantined at the shelter $20

5. Other Animal Control Fees:

Owner release fee
-Licensed/Unlicensed $100/$150
-owner requested euthanasia $50
-per litter $200
- per on-site pick-up $100
- carcass removal (owner's) $100

OTHER FEES

2. Returned check or returned electronic payment $25

Page 159 of 252 ends

Council Agenda Packet - July 1, 2024
Comprehensive Fee Schedule Fiscal Year 2024-25
Resolution No. 24-XX
23 3. Copying fee (except documents 15¢ per page
pursuant to Fair Political Practice Act)

4. Providing Information on CD Media $15

5. Notary fee As set by State law

6. City Council Agenda Available free on website

7. City’s annual budget or comprehensive annual financial report Available free on website

8. Passport Application Acceptance Service Fees established by U.S.

Dept. of State

9. Passport Photo Service $17 (for set of 2)

10. Certification of records $10 per document, plus
copy fee

11. Emergency response costs related to DUI Actual cost.

Alcohol/drug traffic collision incidents. (Authorized
by Govt. Code Section 53150)

12. Sign recovery fee $10 per sign

13. Municipal Code Annual Supplement Service $50 (includes postage)

14. Fees for rental of parks and recreation facilities and programs are established and maintained by the Community Services Director by administrative regulation.

15. Park, open space, and recreation fees.

16. Fees for rental of City vehicles and equipment shall be established and maintained by the Public Works Department by administrative regulation.

17. Where maximum fees are specified by state law, those fees shall prevail over any fee specified herein.

1. Any project generating more than 100 new, permanent jobs; in a category deemed desirable after review by the City Manager.

2. Any project which adds more than $100,000 in projected annual sales tax revenues to the City's general fund.

Page 160 of 252 ends

Council Agenda Packet - July 1, 2024
Prior Proposed Increase/ Percentage
Fee Description Fee Fee (Decrease) Change
Refuse and Recycling Collection Service Charges
Insta Bin Rates
Temp Bin Rental per Week 33.78 36.24 2.46 7.28%
Insta Bin 168.91 181.21 12.3 7.28%
Extra Pick Up 168.91 181.21 12.3 7.28%
Proposed Fiscal Year 2024-25 Comprehensive Fee Schedule Adjustments City of La Verne

Page 161 of 252 ends

Council Agenda Packet - July 1, 2024
This page left intentionally blank
This page left intentionally blank
Council Agenda Packet - July 1, 2024
City of La Verne,City Council
Agenda Report

DATE: July 1, 2024
TO: Honorable Mayor and City Council
FROM: Cody Howing, City Engineer
SUBJECT: PUBLIC HEARING TO CONSIDER REMOVAL OF AN EXISTING CROSSWALK LOCATED AT ARROW HIGHWAY AND B STREET.

SUMMARY
At the May 20, 2024, meeting of the La Verne City Council, a resolution was approved setting a public hearing for July 1, 2024, to receive public comments and to initiate proceedings for the removal of the crosswalk located on the east leg of the intersection of Arrow Highway and “B” Street.

RECOMMENDATION
That, after conducting a Public Hearing, the City Council adopt a Resolution, Approving the Removal of a Marked Pedestrian Crosswalk located at the intersection of Arrow Highway and "B" Street pursuant to the Provisions of Division 11, Chapter 5 of the Vehicle Code of the State of California.

DISCUSSION
At the intersection of Arrow Highway and "B" Street is an existing crosswalk traversing the east leg of the intersection. The existing crosswalk has no controls in place to provide for managing vehicle and pedestrian traffic. The crosswalk serves as a marked pedestrian crossing location connecting the south-east corner of the intersection to the north-east portion of the intersection. The crossing is approximately 85’ in length from curb to curb. The south side of the crosswalk provides a connection to an existing sidewalk and curb ramp along Arrow Highway. However, the north side of the crosswalk terminates at a curb and there is no existing sidewalk connectivity beyond that of the bridge structure that spans the Live Oak Wash Drainage Channel.

Based on historical aerial photos, it appears the crosswalk had existed in a similar location on Palomares Road prior to the construction of Arrow Highway which took place in the mid 60s. Due to the lack of control features, extended crossing length and a now safer pedestrian crossing alternative at the intersection of Arrow Highway and A Street, City Staff presented the crosswalk removal to the Active Transpiration Committee (ATC) on January 9, 2024. The Committee made a recommendation to continue with the process and bring the item to the City Council. At its May 20, 2024 Meeting, the City Council authorized proceeding with the appropriate process for removal.

Noticing of the proposed removal and information for the public hearing date and time, as required by CVC §21950.5 was completed on May 30, 2024 to satisfy the minimum noticing period of 30 days. This includes noticing materials posted at each end of the crosswalk

Page 162 of 252 ends

Council Agenda Packet - July 1, 2024
Public Hearing to Consider Removal of an Existing Crosswalk Located at Arrow Highway and B Street., Page 2

informing users of the proposed removal and how they can submit comments on the subject prior to removal, if approved. There have been no comments received as of the writing of this report.

FISCAL ANALYSIS
Removal of this crosswalk was captured in the recently awarded construction project for the Hayes Dr. King St, & Grove St. et al. project on June 3, 2024, under construction contract bid Item No. D-30. The cost for this work was bid at a cost of $1,820.00. Funding for this work was appropriated with the construction contract award and no additional actions are required for funding the work if the removal is approved.

ENVIRONMENTAL ANALYSIS
This project is categorically exempt from the California Environmental Quality Act, Section 15301 Existing Facilities, and City of La Verne environmental guidelines.

LEGAL REVIEW
The City Attorney has reviewed and approved this report.

ATTACHMENTS

1. Resolution of Approval for Crosswalk Removal

2. Crosswalk B St at Arrow

Coordinated with:

Meg McWade, Direct
or of Public Works

Page 163 of 252 ends

Council Agenda Packet - July 1, 2024
Resolution No. 24-XX
RESOLUTION NO. 24-XX

A RESOLUTION OF THE CITY COUNCIL, CITY OF LA VERNE, CALIFORNIA,

APPROVING THE REMOVAL OF A MARKED PEDESTRIAN CROSSWALK
LOCATED AT THE INTERSECTION OF ARROW HIGHWAY AND “B” STREET PURSUANT TO THE PROVISIONS OF DIVISION 11, CHAPTER 5 OF THE VEHICLE

CODE OF THE STATE OF CALIFORNIA
WHEREAS, the City of La Verne Public Works Department is requesting the removal of a marked pedestrian crosswalk at the intersection of Arrow Highway and “B” Street; and
WHEREAS, the existing crosswalk requested for removal is located on the east leg of the intersection at Arrow Highway and “B” Street, approximately 600 feet east of the recently activated signalized intersection of Arrow Highway and “A” Street which includes controlled pedestrian crossing phases on all four legs; and WHEREAS, the Active Transportation Committee, as an advisory body to the City Council, recommended removal of said crosswalk at its January 9, 2024, Meeting; and
WHEREAS, the City Council adopted a Resolution on May 20, 2024, initiating proceedings, and setting the public hearing for July 1, 2024, to provide for the removal of an existing pedestrian crosswalk located at the intersection of Arrow Highway and “B” Street in the City of La Verne; and
WHEREAS, said Resolution did fix the time and place for a hearing of any and all protests in relation to said proposed crosswalk removal; and WHEREAS, all interested persons were given full opportunity to present their protests or objections; and
WHEREAS, noticing of the public hearing was completed pursuant to California Vehicle Code Section 21950.5.

NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA AS FOLLOWS:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The City Council finds that this project is categorically exempt from CEQA because it is a minor alteration of an existing street involving a pedestrian

Page 164 of 252 ends

Council Agenda Packet - July 1, 2024
Resolution No. 24-XX
crossing with no expansion of use in accordance with CEQA Guidelines 14 California Code of Regulations Section 15301(c).

NOTICE
SECTION 1. The City Council hereby approves the removal of the existing crosswalk located at the intersection of Arrow Highway and “B” Street. The crosswalk will not be removed earlier than 30 days after the July 1, 2024, public hearing on the proposed removal.

PASSED, APPROVED AND ADOPTED this 1st day of July, 2024. ______________________________
Tim Hepburn, Mayor
ATTEST:
____________________________________
Debra Fritz, Deputy City Clerk
I, Debra Fritz, Deputy City Clerk of the City of La Verne, do hereby certify that Resolution No. 24-XX was duly passed and adopted by the said City Council at a regular meeting of the said Council held on the 1 st day of July, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
Debra Fritz, Deputy City Clerk

Page 165 of 252 ends

Council Agenda Packet - July 1, 2024
Pedestrian crosswalk at
Arrow Highway and B Street
proposed to be removed.

Page 166 of 252 ends

Council Agenda Packet - July 1, 2024
This page left intentionally blank
This page left intentionally blank
Council Agenda Packet - July 1, 2024
City of La Verne,City Council
Agenda Report

DATE: July 1, 2024
TO: Honorable Mayor and City Council
FROM: Meg McWade, Public Works Director
SUBJECT: CONSULTANT AGREEMENT FOR WATER AND SEWER COST OF SERVICE AND RATE DESIGN AND ESTABLISHMENT OF AD HOC COMMITTEE.

SUMMARY
Approval of a consultant Agreement with Raftelis to perform a Water and Sewer Cost of Service Rate Study to develop legally defensible rates which support the safety and reliability of the City's Water and Sewer Systems. This will be the first rate adjustment study since 2018/2019.

Additionally, establish an Ad Hoc Water and Sewer Rate Study Committee to enhance public involvement in the rate-setting process.

RECOMMENDATION
That the City Council:

1. Authorize the City Manager to execute a Professional Services Agreement, and any amendments related thereto, with Raftelis, at prices bid, with an estimated cost of $109,076, for the Water and Sewer Cost of Service and Rate Design Study; and

2. Adopt a resolution, titled “A Resolution of the City Council of the City of La Verne, California, Establishing an Ad Hoc Water and Sewer Rate Study Committee”; and

3. Approve the by-laws of the Ad Hoc Water and Sewer Rate Study Committee.

DISCUSSION
Funding for the operation, maintenance, and renewal of the City’s water and sewer infrastructure comes entirely from the City’s Enterprise Funds. A cornerstone of a well-operated utility is the establishment of equitable cost-based rates, fees, and charges. These rates are essential for providing communities, like La Verne, with the financial capacity to construct, operate, maintain, and reinvest in their water and wastewater infrastructure. Such infrastructure is vital for delivering safe and reliable drinking water, as well as fire protection and wastewater services to the community. To ensure these rates adequately meet the City's revenue needs, they are periodically reviewed and adjusted as necessary.

City Council last approved an increase in water and sewer rates in 2019. Since that time, costs have continued to escalate and revenues have not kept pace with expenditures, particularly in the water system. Additionally, the City has developed Water and Sewer Master Plans outlining the necessary water and sewer system capital investments. The City requires rate adjustments for sustainable water and sewer systems. To ensure compliance with California statutes, such as Proposition 218 and related litigation, staff recommends hiring a consulting firm that specializes in performing Cost of Service studies and developing the necessary administrative

Page 167 of 252 ends

Council Agenda Packet - July 1, 2024
Consultant Agreement for Water and Sewer Cost of Service and Rate Design and Establishment of Ad Hoc Committee., Page 2

record for legally defensible rates.

Consultant Selection Process
On February 8, 2024, a Request for Proposals (RFP) was posted on PlanetBids for a consultant to assess and evaluate the cost and rates of the City of La Verne’s existing water and sewer systems. At the bid due date on March 21, 2024, five (5) proposals were received from the following qualified firms (listed in alphabetical order):
o Bartle Wells Associates
o Endeavor Utility Solutions
o NBS Government Finance Group
o Raftelis
o Willdan Financial Services
The bids were reviewed and ranked by an Interdepartmental Review Committee to assess experience and expertise, methodology, references, and cost - as shown in the attached Proposal Summary. After the independent scoring of the proposals, the top three firms - Bartle Wells Associates, Raftelis, and Willdan Financial Services - were invited to the interview process. Upon completion of the interviews, the Review Committee determined that Raftelis’ proposal best fit the needs of the City. Should the City Council award the contract to Raftelis, work is intended to begin in July 2024, with the proposed water and sewer rates being presented to City Council in 2025.

Consultant Scope of Work
Raftelis will conduct a detailed analysis of customer water consumption characteristics and demand forecasting and a comprehensive cost-of-service analysis, referencing the City’s funds and budgets, Capital Improvement Program (CIP), Urban Water Management Plan, Water/Sewer Master Plans, customer classes, current usage data, future planned growth, current/pending legislation, and other relevant information in developing the proposed water and sewer rates. Once proposed water and sewer rates are determined, rate workshops and community meetings will be conducted.

Outreach to the community will play an important role throughout the assessment of the City’s water and sewer rates. The City will coordinate a social media campaign with Raftelis to ensure continued education and communication throughout this project's scope. Raftelis will also host two community meetings to inform the public about the rate study.

A key component of this study is the Proposition 218 process. In 1996, California voters adopted Proposition 218 (Prop 218) which added article XIII to the State Constitution. Local agencies, including La Verne, must comply with Prop 218 when proposing increased water and sewer charges. The City must mail a notice of the proposed charges to its customers, including the amount or basis for calculating the charges. No sooner than 45 days later, the City must hold a public hearing and consider any comments made by members of the community. The City must also consider the number of protests submitted by property owners and water /sewer account holders. If valid protests are submitted for a majority (50% plus one) of properties served by La Verne, then the City cannot adopt the charges. Raftelis will lead this Prop 218 process on behalf of the City. In conjunction with Staff and the Ad Hoc Committee, Raftelis will

Page 168 of 252 ends

Council Agenda Packet - July 1, 2024
Consultant Agreement for Water and Sewer Cost of Service and Rate Design and Establishment of Ad Hoc Committee., Page 3

initially present rate adjustments to the City Council for consideration. Should the City Council choose to authorize rate adjustments, Raftelis’ in-house Strategic Communications Team will prepare the Prop 218 notices for mailing within the 45-day noticing period prior to the public hearing. The consultant will also participate in the public hearing and majority protest process. If ultimately adopted, the proposed rates will apply for fiscal years 2026 to 2030.

Proposed Ad Hoc Water and Sewer Rate Study Committee
In addition to approval of the Agreement, Staff is recommending the establishment of an Ad Hoc Rate Water and Sewer Study Committee to enhance public participation, giving residents and businesses an opportunity to provide insights during the water and sewer rate study process. The attached resolution and bylaws detail the composition and scope of the proposed Ad Hoc Water and Sewer Rate Study Committee. The Committee is proposed as a 5-member Committee appointed by the City Council. Each member will serve for the duration of the committee's existence, which shall not exceed one year unless extended by the City Manager.

Meetings will be held as needed, but at least once every two months, with more frequent meetings anticipated as the rates are developed.

If the Committee is authorized, the Committee application process will begin in July with review of applicants by City Council in September. It is anticipated the first meeting of the Ad Hoc Water and Sewer Rate Study Committee will be in October 2024.

FISCAL ANALYSIS
Adequate appropriations for the Consultant Agreement with Raftelis (estimated cost of $109,706) are included in the Fiscal Year 2024-25 Adopted Budget in the Water (Fund 502) and Sewer (Fund 540) Funds. Should additional work be necessary, the costs will be funded by Water and Sewer at the hourly/bid prices as outlined in the Agreement.

ENVIRONMENTAL ANALYSIS
Not applicable.

LEGAL REVIEW
This report, attached Agreement, and Resolution have been reviewed and approved by the City Attorney.

ATTACHMENTS

1. Professional Service Agreement - Raftelis - Water and Sewer COS Rate Study

2. Professional Service Agreement Exhibits

3. Proposal Summary

4. Resolution creating an Ad Hoc Committee for a Water and Sewer Rate Study

5. Resolution Attachment A - Ad Hoc Water and Sewer Rate Study Committee Bylaws

Report Prepared By:

Andrea Blockinger, Administrative Analyst

Page 169 of 252 ends

Council Agenda Packet - July 1, 2024
1 Raftelis Consulting
Rev. 2-2023

CITY OF LA VERNE

PROFESSIONAL SERVICES AGREEMENT

WITH RAFTELIS FINANCIAL CONSULTING

INC, A PROFESSIONAL CORPORATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 1 st day of July, 2024 (“Effective Date”), by and between the CITY OF LA VERNE, a municipal corporation (“City”), and Raftelis Financial Consulting, Inc., a professional corporation (“Consultant”).

RECITALS
A. City proposes to utilize the services of Consultant as an independent contractor to perform a water and sewer rate study, as more fully described herein; and B. Consultant represents that it has that degree of specialized expertise contemplated within California Government Code section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and
C. City and Consultant desire to contract for the specific services described in Exhibit “A” and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and
D. No official or employee of City has a financial interest, within the provisions of sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

1.0. SERVICES PROVIDED BY CONSULTANT

1.1. Scope of Services. Consultant shall provide the professional services described in City’s Request for Proposals, attached hereto as Exhibit “A,” and Consultant’s Proposal, attached hereto as Exhibit “B,” both incorporated herein.

1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices, as of the time and at the location the services are provided. In the performance of services hereunder, Consultant may rely on all data and information provided by or on behalf of City without additional investigation. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement.

1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the complete satisfaction of the City. Evaluations of the work will be done by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:

Page 170 of 252 ends

Council Agenda Packet - July 1, 2024
2 Raftelis Consulting
Rev. 2-2023
(a) Meet with Consultant to review the quality of the work and resolve the matters of concern;
(b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or
(c) Terminate the Agreement as hereinafter set forth.

1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, to the extent caused by Consultant’s violation any of the above-mentioned laws in Consultant’s performance under this Agreement.

1.5. Non-Discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military or veteran status, except as permitted pursuant to section 12940 of the Government Code.

1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement.

1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant’s sole cost and expense.

1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law or legal process. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement.

2.0. COMPENSATION AND BILLING

2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit “C,” attached hereto and made a part of this Agreement (the “Fee Schedule”).

Consultant’s total compensation shall not exceed One Hundred Thousand and Nine Thousand

Page 171 of 252 ends

Council Agenda Packet - July 1, 2024
3 Raftelis Consulting
Rev. 2-2023
Seven Hundred and Six Dollars ($109,706.00), unless additional work is authorized pursuant to Section 2.2. Additional Services.

2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant’s Proposal unless the City Manager or designee, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than two times a month. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail, the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.

2.4. Records and Audits. Records of Consultant’s services pertinent to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after termination of this Agreement.

3.0. TIME OF PERFORMANCE

3.1. Commencement and Completion of Work. Unless otherwise agreed to in writing by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule approved by City as set forth in Exhibit “D,” attached hereto and incorporated herein. The Project Schedule may be amended by mutual agreement of the parties. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement.

3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, pandemics (excluding COVID-19), material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party (each, a “Force Majeure Event”). If a party experiences a Force Majeure Event, the party shall, within five (5) days of the occurrence of the Force Majeure Event, give written notice to the other party stating the nature of the Force Majeure Event, its anticipated duration and any action being taken to avoid or minimize its effect. Any suspension of performance shall be of no greater scope and of no longer duration than is reasonably required and the party experiencing the Force Majeure Event shall use best efforts without being obligated to incur any material expenditure to remedy its inability to perform; provided, however, if the suspension of performance continues for sixty (60) days after the date of the occurrence and such failure to perform would constitute a material breach of this Agreement in the absence of such Force Majeure Event, the parties shall meet and discuss in good faith any amendments to this Agreement to permit the other party to exercise its rights under this Agreement. If the parties are not able to agree on such amendments within thirty (30) days and if suspension of performance continues, such other party may terminate this Agreement immediately by written notice to the

Page 172 of 252 ends

Council Agenda Packet - July 1, 2024
4 Raftelis Consulting
Rev. 2-2023
party experiencing the Force Majeure Event, in which case neither party shall have any liability to the other except for those rights and liabilities that accrued prior to the date of termination.

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of 13 months, ending on August 31, 2025, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties.

4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Consultant. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination.

In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City.

4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City’s written notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant.

4.0. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement to create the work identified as a deliverable in Exhibit “B” (collectively, the “Deliverables”) including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use of uncompleted documents without specific written authorization from Consultant shall be at City’s sole risk and without liability or legal expense to Consultant.

5.0. INSURANCE

5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated “A,” Class X, or better in the most recent Best’s Key Insurance Rating Guide, and approved by City:
(a) Commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than One Million Dollars ($1,000,000.00) per occurrence, Two Million Dollars ($2,000,000.00) general aggregate. (b) Business automobile liability for owned vehicles, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars

Page 173 of 252 ends

Council Agenda Packet - July 1, 2024
5 Raftelis Consulting
Rev. 2-2023
($1,000,000.00) combined single limit per accident for bodily injury and property damage.
(c) Workers’ compensation insurance as required by the State of California.

Consultant agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.
(d) Professional errors and omissions (“E&O”) liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. Architects’ and engineers’ coverage shall be endorsed to include contractual liability. If the policy is written as a “claims made” policy, the retro date shall be prior to the start of the contract work. Consultant shall obtain and maintain, said E&O liability insurance during the life of this Agreement and for three years after completion of the work hereunder.

5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions:
(a) Additional insureds: “The City of La Verne and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability from activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant.”
(b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.”
(c) Other insurance: “The Consultant’s insurance coverage shall be primary insurance as respects the City of La Verne, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of La Verne shall be excess and not contributing with the insurance provided by this policy.”
(d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of La Verne, its officers, officials, agents, employees, and volunteers.
(e) The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible

Page 174 of 252 ends

Council Agenda Packet - July 1, 2024
6 Raftelis Consulting
Rev. 2-2023
or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention.

5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement.

5.5. Non-Limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property.

6.0. GENERAL PROVISIONS

6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement.

6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.

Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement.

6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement.

Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City.

6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.

IF TO CONSULTANT: IF TO CITY:

Page 175 of 252 ends

Council Agenda Packet - July 1, 2024
7 Raftelis Consulting
Rev. 2-2023
City of La Verne
3660 D Street
La Verne, CA 91750
Tel: Tel: (909) 596-8726
Attn: Attn: Ken Domer, City Manager
Courtesy copy to:

City of La Verne 3660 D
Street
La Verne, CA 91750
Attn: Finance Dept. | Purchasing

6.5. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.

6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California.

6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement.

Regardless of City’s consent, no subletting or assignment shall release Consultant of Consultant’s obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement.

6.8 Indemnification and Hold Harmless. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers and employees, at Consultant’s sole expense, from and against all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers and employees to the extent caused by the negligent performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the

Page 176 of 252 ends

Council Agenda Packet - July 1, 2024
8 Raftelis Consulting
Rev. 2-2023
foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.

Consultant shall have no obligation to indemnify City against liability for claims by a third party for failure to comply with its obligations under Article XIII D of the California Constitution (Proposition 218).

6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.

Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.

6.10. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

6.11. Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require.

6.12. Ownership of Documents. The Deliverables shall be and remain the sole property of City. To the extent any findings, reports, documents, information and data are not a Deliverable, City shall have a royalty-free, non-exclusive, perpetual, irrevocable, non-sublicensable, non-

Page 177 of 252 ends

Council Agenda Packet - July 1, 2024
9 Raftelis Consulting
Rev. 2-2023
assignable license to access such findings, reports, documents, information and data for the purposes of this Agreement and to obtain copies of same at no additional charge. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City the Deliverables as requested by City or its authorized representative, at no additional cost to the City. Nothing in this Agreement shall be deemed or construed as a waiver, release, transfer, assignment or divestiture by Consultant of any of its intellectual property, know-how or trade secrets.

6.13. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 7920.000, et seq.).

Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 7924.510, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.

6.14. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code sections 81000, et seq.) and Government Code section 1090.

During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute.

6.15. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design drawings, estimates and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction.

6.16. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect.

6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent

Page 178 of 252 ends

Council Agenda Packet - July 1, 2024
10 Raftelis Consulting
Rev. 2-2023
this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.

6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

6.19. Binding Effect. This Agreement binds and benefits the parties and their respective permitted successors and assigns.

6.20. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.

6.21. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

6.22. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

6.23. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.

6.24. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

6.25. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

6.26. Counterparts. This Agreement may be executed in one or more counterparts, each

Page 179 of 252 ends

Council Agenda Packet - July 1, 2024
11 Raftelis Consulting
Rev. 2-2023
of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

6.27. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.
[Signatures appear on following page.]

Page 180 of 252 ends

Council Agenda Packet - July 1, 2024
12 Raftelis Consulting
Rev. 2-2023
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.

CONSULTANT
Date:

Signature
[Name and Title]

CITY OF LA VERNE
Date:

Ken Domer
City Manager
ATTEST:

Debra Fritz
Deputy City Clerk
APPROVED AS TO FORM:

Date:

Kimberly Hall Barlow
City Attorney

Page 181 of 252 ends

Council Agenda Packet - July 1, 2024

EXHIBIT A

REQUEST FOR PROPOSALS

Page 182 of 252 ends

Council Agenda Packet - July 1, 2024

EXHIBIT B
CONSULTANT’S PROPOSAL

Page 183 of 252 ends

Council Agenda Packet - July 1, 2024

EXHIBIT C

FEE SCHEDULE

Page 184 of 252 ends

Council Agenda Packet - July 1, 2024

EXHIBIT D

PROJECT SCHEDULE

Page 185 of 252 ends

Council Agenda Packet - July 1, 2024

REQUEST FOR PROPOSALS (RFP)

COST OF SERVICE AND RATE DESIGN
STUDY

PROPOSALS MUST BE RECEIVED BY
5:00 PM ON THURSDAY, MARCH 21, 2024

City of La Verne
3660 “D” Street
La Verne, CA 91750

EXHIBIT A

Page 186 of 252 ends

CITY oi

LAVERNE
Council Agenda Packet - July 1, 2024

Page 2 of 12 ends

RFP Issue Date: Thursday, February 8, 2024
Proposal Name: Cost of Service and Rate Design Study

Proposal Due Date: Thursday, March 21, 2024 by 5:00 PM
Questions: Please direct any questions or concerns to the City Clerk’s Office at [email protected] in writing by 5:00 PM on Thursday, February 29, 2024. Only questions with
“Cost of Service and Rate Design Study” in the subject
line will be accepted. Answers to submitted questions will be posted on the Planet Bids portal.

Proposal Submitted To: Proposals must be submitted electronically for the exact item(s) requested in the RFP specifications. Proposals
must be submitted through Planet Bids at:
https://pbsystem.planetbids.com/portal/45040/portal-home

Due Date and Delivery:

Proposals are to be submitted electronically online. Proposals must be for the entire scope of services outlined in this RFP . Incomplete proposals will not be considered. The electronic bid system will close exactly at the date and time set forth in this RFP , 5:00 PM, on Thursday, March 21, 2024. All applicable forms required to be completed per the RFP shall be submitted electronically prior to the RFP deadline. Hard copies will not be accepted. It is the Proposer’s sole responsibility to ensure that their proposal is received as specified. Proposals may be submitted earlier than the date(s) and time(s) indicated.

Proposals must be submitted through Planet Bids at:
https://pbsystem.planetbids.com/portal/45040/portal-home

Page 187 of 252 ends

Council Agenda Packet - July 1, 2024

Page 3 of 12 ends

TABLE OF CONTENTS

SECTION I: GENERAL INFORMATION 4
A. BACKGROUND 4
B. OBJECTIVE 5
SECTION II: SCOPE OF WORK 5
SECTION III: PROPOSAL SUBMITTAL REQUIREMENTS 8
A. TENTATIVE SCHEDULE OF EVENTS 8
B. SUBMISSION OF PROPOSALS 8
SECTION IV: PROPOSAL EVALUATION 10
SECTION V: GENERAL TERMS AND CONDITIONS 11
SECTION VI: ENCLOSURES 12

Page 188 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 4 of 12 ends

SECTION I: GENERAL INFORMATION

A. BACKGROUND
The City of La Verne is located along the foothills of the San Gabriel and Pomona Valleys. La Verne was founded in 1887 and incorporated in 1906, is approximately 35 miles east of Los Angeles, and has a population of over 33,000. The City maintains a council-manager form of government in whic h the City Council develops and establishes ordinances and policies in the best interest of its citizens.

The City receives its domestic water from groundwater wells and import water from Three Valleys Municipal Water District Connections, which pulls water from the Colorado River and the state water project through Metropolitan Water District of Southern California . The City has nine ( 9) total groundwater wells with eight ( 8) currently active, which supply 25% of the City’s annual water distribution. The groundwater and import water is blended at City facilities before being distributed to customers.

The City’s water system operates under seven (7) zones, which are broken down into five (5) billing cycles, and provides service to approximately 8,900 customers. These zones are labeled numerically one (1) through six (6), and the plateau rate. The zones are charged at different rates based on costs to pump to the customer. The plateau rate is charged a special rate and these customers are entered into the plateau rate by agreement. The City’s current water rate structure consists of three components for its bi -monthly payments: (1) a fixed meter charge, (2) charge for pumping, dependent on customer zone, and (3) a commodity charge, which is based on the amount of water used, measured per unit (1,000 gallons). The plateau rate is charged only for two components for its bi -monthly payments: (1) charge for pumping, dependent on customer location, and (2) a commodity charge, which is based on the amount of water used, measured per unit (1,000 gallons).

The City has a collection and conveyance sewer system. The City’s sewer system consists of approximately 112 miles of sewer mainlines and owns and operates two (2) sewer lift stations. The sewer system is connected to the Los Angeles County Sanitation District’s system. The City charges sewer fees at a flat rate of $23.43 per bi- monthly billing cycle (approximately 60 days). Commercial, industrial, and institutional customers are additionally charged $0.20 per unit throughout the bi-monthly billing period, an approximately 60-day cycle.

Page 189 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 5 of 12 ends

In 2018, the City Council approved the most recent rate increase of $0.37 on the water volumetric rate and a $4.43 increase on the bimonthly sewer rate. Enclosure 2 identifies the current rates for water and sewer service.

B. OBJECTIVE
The City of La Verne is seeking a qualified firm to independently assess and evaluate the cost and rates of the City of La Verne’s existing domestic water and sewer systems.

The broad objective of the study is to adequately fund each utility’s operations and maintenance (O&M), any debt service, capital costs, provide adequate reserve levels for operating cash flow, capital replacement, bond requirements, and unforeseen events, while following legislative directives and minimizing current and future rates to the greatest degree possible.

The study will be based on a comprehensive review of the City of La Verne’s funds and budgets, Capital Improvement Program (CIP), Comprehensive Water System Master Plan, Urban Water Management Plan, Sewer Master Plan, customer classes, current usage data, future planned growth, current /pending legislation, and any other information deemed necessary. The results of this study will provide the foundation for rates for a maximum of five (5) years.

SECTION II: SCOPE OF WORK
Project tasks shall include, but are not necessarily limited to, those items noted below. If the consultant feels that additional tasks are warranted, they must be clearly identified in the consultant’s proposal.

All references to “meeting(s)” will mean face -to-face meetings and not conference calls. All references to “water” references domestic water. The water rate study will be separate from the sewer rate study. Proposal must indicate cost proposal for each study separately.

A. DELIVERABLES
In preparing a response to this RFP , the consultant shall adhere to the Proposal Format detailed in the RFP and must describe the methodology and techniques that it will use, time and staffing resources allocated, anticipated meetings, and costs involved i n addressing each of the following tasks:

1. Create a 10-year financial plan model for the potable water and sewer services that projects each service’s revenues, operations and maintenance costs, capital improvement costs, reserve funding and debt service costs.

Page 190 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 6 of 12 ends

2. Provide a cost -of-service analysis for each service that fairly and equitably distributes costs across customer zones in compliance with Proposition 218, Proposition 26, and other federal, state, and local laws/regulations.

3. Review the current water and sewer rates and make recommendations for new rate structure(s), if necessary.

4.Utilizing the financial plans, analysis, and chosen framework, create a comprehensive five-year rate schedule for each service, presenting a minimum of two alternatives. Furthermore, suggest an alternative water budget structure for landscape irrigation customers that aligns with the potable water use reduction and conservation objectives outlined in La Verne’s Urban Water Management Plan. Ensure that this proposal also adheres to the established Capital Improvement Program (CIP) schedule outlined in the City’s Water System Master Plan.

5. Develop drought rate structure for implementation during water shortage situations.

6. Evaluate potable water and sewer facilities and capacity fees that represent new development’s share of capital costs required to accommodate their addition to the respective systems. Provide recommendations.

7. An evaluation of impacts or required changes to water rates for inclusion in current rates or for consideration in future rate changes as a result of legislation enacted by any governmental agency.

B. SCOPE OF SERVICES
The below scope of services includes the major tasks required to complete the study.

Proposers should include any recommended additional tasks they believe are required to meet the objectives defined above and the reasoning behind such an approach.

1. Conduct an in -person kick-off meeting with City staff to discuss project priorities, data needs, and the project schedule. The consultant will also need to prepare a data request list that will be discussed during the meeting.

2. Develop a 10 -year financial plan model for the potable water and sewer services that determines the revenue requirements based on projected revenues, operating and maintenance expenditures including capital improvements, debt service coverage, and adequate reserve funding. The analysis should recommend debt service and reserve funding policies as well as any other policy considerations that the Consultant recommends and the City concurs are priorities.

3. Prepare a cost -of-service analysis that fairly and equitably allocates costs to customer classes while adequately funding revenue requirements including

Page 191 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 7 of 12 ends

operations and maintenance, capital improvements, and debt service. The analysis must ensure that rates, facilities fees, and capacities fees and charges are defensible and comply with the requirements of Proposition 218, Proposition 26 , and other regulations.

4. Recommend variances to the current structure and financial impacts of variances.

These alternative structures will be presented to Staff with City selecting structure for further analysis.

5. Evaluate the budgets of Three Valleys Municipal Water District , Six Basins Watermaster, Los Angeles County Sanitation Districts, etc. and any impact upon the City’s share of costs for administration, operation and CIP for inclusion.

6. Recommend rate and fee structures for potable water and sewer utilities that will fairly recover allocated costs and adequately fund reserves. Rate structure recommendations should consider: current and future operations and maintenance costs, projected demands, water supply, and capital improvement requirements.

Consultant shall provide three alternative rate scenarios for each service.

7. Provide a comparative analysis that illustrates how La Verne’s rates compare in cost to neighboring agencies and utilities with these agencies determined by the City. At a minimum, this list should include all Three Valleys Metropolitan Water District member agencies for water utility service and the corresponding sewer agencies for the region.

8. As part of the deliverables, the Consultant will d evelop a rate modeling program (utilizing standard software such as excel) which will become the property of the City that can forecast rates up to 30 years based on expected cost increases over time , including increases in the cost of imported water, anticipated changes in the water and sewer systems, inflation and interest rates , current customer base and growth projections, water sales and production projections, water supply , operations and maintenance costs, staffing costs, and any bonds issuance or debt obligation . Must have the ability to run CIP scenarios and quickly show impact on rates. Model must have a user-friendly dashboard with interactive graphics that automatically produces a suite of reports and graphs as inputs are changed. Consultant shall be responsible for training designated City staff on the use of the model.

9. Review impacts of projected new development and redevelopment on rates. As part of this review, the proposer should differentiate capital costs associated with rehabilitation/replacement of existing utilities from capital costs for improvements required for expansion of service as a result of new development.

10. Prepare draft and final reports that summarize the results and recommendations of the study and serve as a document of record in compliance with Proposition 218.

Page 192 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 8 of 12 ends

Draft and final deliverables shall be made available in Word, Excel, and PDF file formats. Word and Excel formats shall be editable by City Staff.

11. Conduct one or more separate rate workshops with staff and City Council. City Council may require two meetings.

12. Provide a calendar of projected due dates to ensure rates are effective by July 1, 2025.

13. Develop the Proposition 218 notice for the public hearing and present the study to City Council and the public at the Proposition 218 hearing. Conduct a minimum of two community meetings to inform the public of any rate changes prior to the Proposition 218 hearing.

14. The scope should include any additional meetings or webinars that the proposer considers necessary to ensure that the City is well informed as to the status of the project and to discuss major milestones of the project.

SECTION III: PROPOSAL SUBMITTAL REQUIREMENTS

A. TENTATIVE SCHEDULE OF EVENTS
The following is a tentative schedule of this entire RFP process. While the City will attempt to apply the necessary resources to maintain this schedule, the following dates are merely projections, and the City reserves the right to modify this schedule as needed to accommodate the completion of this RFP process. The following is a tentative timeline for the evaluation and RFP selection procedure.

RFP Issued February 8, 2024
Deadline for Written Questions February 29, 2024
Response to Questions March 7, 2024
Proposal Submittal Deadline March 21, 2024
Review of Proposals March 2024
Council Review and Approval April 2024
Contract Start Date May 2024

B. SUBMISSION OF PROPOSALS

The Proposal shall include the following:

1. Cover Letter
i. Maximum of two (2) pages
ii. Address to Public Works Director Meg McWade

Page 193 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 9 of 12 ends

2. Executive Summary
i. In a brief narrative, describe the proposed solution by setting forth the overall approach and plans to meet the requirements of the RFP .

The intent of this narrative is to convey to the City that the firm understands the objective of the requested service, the nature of the work, and the level of effort necessary to successfully provide the defined services. The narrative should stipulate how the firm’s approach and plans to provide the services are appropriate to the tasks involved.

3. Scope of Work
i. Describe the firm’s approach to managing the project, including an implementation plan that describes in detail the specific plans to manage, control, and supervise the project to ensure satisfactory provision of services.
ii. Provide a project timeline designed to meet the requirements of the City, as well as scheduling and control methodology that will be used to ensure the schedule will be met. The timeline should include key milestone dates and a detailed description of key project steps. iii. Provide a description of the implementation plan considerations, including estimated time frames and deliverables for various stages of the project.
iv. Detailed description of the specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work. v. Provide a detailed description and/or examples of your quality control procedures that ensures all work products delivered to the City (i.e., drafts and final versions) are of high-quality, and accurate, and have been thoroughly reviewed prior to delivery to the City. vi. Provide examples of recent reports the firm has prepared for similar agencies that allows for review of the draft/services in a reasonable time frame. The reports should be uniform, professional, and easy to understand. The reports should provide summary level information that includes (but not limited to variance analysis), summary of costs to be allocated and collected by Fund, Department, and or function, and the ability to drill down into varying levels of detail, if so desired.

Reports shall also inclu de a summary of all inputs and costs to be allocated that can be used to easily verify the accuracy of the plan. vii. Demonstrate the ability to create ad hoc reports as needed. viii. Include in the cost proposal the rate for additional meetings, if needed.
ix. Cost proposal should be all -inclusive to include travel costs and administrative tasks.

4. References

Page 194 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 10 of 12 ends

i. Provide at least five (5) references, past and present, of similar size agencies in California using the same service being proposed and indicate the scope of work, date, and the name, email address, and telephone number of the client contact. The reference information should include the role your team member had in the work. Also, provide a complete list of other municipalities in California utilizing your rate study services over the past five (5) years.

5. Required Statements
i. A statement that all charges for services will be a “Not -To-Exceed” fee, as submitted with and made part of said consultant’s quote. ii. A copy of the consultant’s hourly rate schedule and a written statement that said hourly rate schedule is part of the consultant’s quote for use in invoicing for progress payments and for extra work incurred that is not part of this RFP .
iii. A written statement by the consultant that all federal laws and regulations shall be adhered to notwithstanding any state or local laws and regulations. In case of conflict between federal, state, or local laws or regulations, the strictest shall be adhered to. iv. A written statement by the consultant shall allow all authorized federal, state, county, and the City officials access to place of work, books, documents, papers, fiscal, payroll materials, and other relevant contract records pertinent to this project. All relevant records shall be retained for at least three (3) years. v. A written statement that the consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin.
vi. A written statement that the consultant shall comply with the California Labor Code., pursuant to said regulations entitled: Federal Labor Standards provisions; Federal Prevailing Wage Decision; and State of California Prevailing Wage Rates, respectively. vii. A written statement that the consultant shall comply with the Copeland Anti-kickback Act (18 USC 874 C) and the implementation regulation (29 CFR 3) issued pursuant thereto, and any amendments thereof

SECTION IV: PROPOSAL EVALUATION
Proposals will be evaluated on the basis of the response to all provisions of this RFP . Since this solicitation is an RFP as opposed to a Bid, pricing alone will not constitute the entire selection criteria. The City may use some or all of the following criteria and corresponding percentages in its evaluation and comparison of proposals submitted. The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to

Page 195 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 11 of 12 ends

indicate their relative importance. The City reserves the right to modify the evaluation criteria and percentage of the score as deemed appropriate prior to the commencement of evaluation. The City reserves the right to hold interviews with some and/or all of the proposers as part of the proposal evaluation process. Should the City determine an interview is required, the Consultant shall ensure the key Project Team Members participate in the interview.

Potential Proposal Evaluation Criteria
Evaluation Criteria Points
Qualifications/Experience/References 25
Thoroughness & Understanding of the
Project 25
Timeline & Methodology 25
Cost of Services 25
Total 100

SECTION V: GENERAL TERMS AND CONDITIONS

1. Read all Instructions. Please read the entire RFP and all enclosures before preparing your proposal.

2. Proposal Costs. Costs for developing proposals are entirely the responsibility of the proposer and shall not be charged to the City. The consultant shall provide all necessary personnel, instruments, equipment, and materials to perform the described services.

3. Proposal Becomes City Property . The RFP and all materials submitted in response to this RFP will become property of the City.

4. Selection of Vendor. The selection of a vendor will be memorialized in the form of a City Agreement (See Section VI – Enclosures), authorized by approval of the City Council, and signed by both parties.

Once a vendor is selected, the Agreement with that vendor must still be negotiated and submitted to the City Council for approval, and there is no contractual agreement between the selected vendor unless and until the City Council accepts and signs the Agreement.

Page 196 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Water and Sewer Cost-of-Service and Rate Design Study – Consultant RFP February 2024

Page 12 of 12 ends

5. Insurance. The City of La Verne requires a certificate of insurance prior to the commencement of any work. Upon successful selection, the consultant has three (3) business days to provide the certificate of insurance to the City in compliance with the Standard City Agreement.

6. Incomplete Proposals May be Rejected. If a Proposer fails to satisfy any of the requirements identified in this RFP , the Proposer may be considered non - responsive and the proposal may be rejected. The City reserves the right to accept or reject any or all proposals or to waive any defects or irregularities in the proposals or selection process.

7. Responsible Representatives . The consultant shall assign a responsible representative and an alternate to perform the assigned tasks. Both staff members shall be identified in the proposal. The consultant’s representative will be responsible for all duties from contract negotiations through project completion. If the primary representative is unable to continue with the project, then the alternate representative will become the primary representative. Any other changes in responsible representative must be approved, in advance, by the City. The City will have the right to reject other proposed changes in personnel and may consider any other changes in responsible personnel a breach of contract

8. City Business License – The selected proposer shall be required to obtain a City of La Verne Business License prior to commencing any work in La Verne.

9. Locality Preference. The City of La Verne reserves the right to have preference towards local bidders.

SECTION VI: ENCLOSURES
Enclosure 1 Standard City Agreement
Enclosure 2 Current Water Rates & Fees

Page 197 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne
Cost of Service and Rate Design Study
PROPOSAL / MARCH 21, 2024

EXHIBIT B

Page 198 of 252 ends

~ RAFTELIS
Council Agenda Packet - July 1, 2024

Table of
Contents
Cover Letter ............................................. 1 Executive Summary ................................ 3
Scope of Work ......................................... 5 References ............................................. 24 Required Statements ............................ 34
Firm Overview ........................................ 35 Project Team .......................................... 36 Exceptions ............................................. 47 Appendix: Sample Reports .................. 49

Diversity and inclusion
are an integral part of
Raftelis’ core values.

We are committed to doing our part to fight
prejudice, racism, and discrimination by
becoming more informed, disengaging with
business partners that do not share this
commitment, and encouraging our
employees to use their skills to work toward
a more just society that has no barriers to
opportunity.

Raftelis is registered
with the U.S. Securities
and Exchange
Commission (SEC) and
the Municipal Securities
Rulemaking Board
(MSRB) as a Municipal
Advisor.

Registration as a Municipal Advisor is a
requirement under the Dodd-Frank Wall
Street Reform and Consumer Protection
Act. All firms that provide financial forecasts
that include assumptions about the size,
timing, and terms for possible future debt
issues, as well as debt issuance support
services for specific proposed bond issues,
including bond feasibility studies and
coverage forecasts, must be registered with
the SEC and MSRB to legally provide
financial opinions and advice. Raftelis’
registration as a Municipal Advisor means
our clients can be confident that Raftelis is
fully qualified and capable of providing
financial advice related to all aspects of
financial planning in compliance with the
applicable regulations of the SEC and the
MSRB.

Page 199 of 252 ends

§)El @

RZXF LIS
~ REGISTERED
Ill

MUNICIPAL

ADVISOR
Council Agenda Packet - July 1, 2024
RAFTELIS 1

24640 Jefferson Avenue, Suite 207 , Murrieta, CA 92562

www.raftelis.com

COVER LETTER
March 21, 2024

Ms. Meg McWade
Public Works Director
City of La Verne Public Works Department
3660 D Street
La Verne, CA 91750

Subject: Proposal for Cost of Service and Rate Design Study

Dear Ms. McWade:

The City of La Verne’s (City) water and sewer utilities are facing multiple challenges to their combined need for $6.6 million in capital improvements over the next four years. In FY 2023, the City experienced revenue reductions due to water shortages, high inflation, and increasing wholesale prices from Three Valleys Municipal Water District as well as the Los Angeles County Sanitation Districts. These pressures directly affect the financial health of the City’s water and sewer enterprise funds both in the short- and long-term.

We have developed a tailored project approach to specifically address these challenges using information contained in the RFP, research we gathered online, and from our project team’s industry experience. The end-goal for the City is to achieve financial health for your water and sewer utilities, minimize rate impacts to customers, and to develop defensible proposed rates.

Raftelis is one of the most experienced municipal utility financial consultants in the country. In California, we have offices in Los Angeles, Santa Barbara, and Riverside County. We have served hundreds of utilities across California, where our recommendations are readily adopted and implemented. We are intimately familiar with the requirements of Proposition 218 and other applicable California regulations. We help California utilities implement rate structures that fund capital improvements while addressing policy goals such as promoting conservation and increasing the affordability of services. A small sampling of our California clients includes the cities of Glendale, San Bernardino, Chino, Redlands, Pomona, and Long Beach. We have also completed recent rate studies for special Districts such as El Toro Water District, Crescenta Valley Water District, and the Vallecitos Water District.

Project Team
I, John Wright, CPA (CO), will serve as the Project Manager, Responsible Representative, and the contact person for this proposal. I will be responsible for deliverables and the schedule. I am a Senior Manager with Raftelis in our Riverside County office with over 26 years of utility industry experience. I am a Municipal Advisor Representative, a member of the Editorial Board overseeing the update of the American Water Works Association (AWWA) publication, Manual of Water Supply Practice M1, Principles of Water Rates, Fees, and Charges (AWWA Manual M1), and a contributing author to the Water Environment Federation publication, Manual of Practice No. 27, Financing and Charges for Wastewater Systems (WEF Manual 27).

Page 200 of 252 ends

~ RAFTELIS
Council Agenda Packet - July 1, 2024
RAFTELIS 2

24640 Jefferson Avenue, Suite 207 , Murrieta, CA 92562

www.raftelis.com
Sudhir Pardiwala, PE (CA) will serve as our Project Director and the alternate Responsible Representative providing project oversight and direction. Sudhir is an Executive Vice President with Raftelis in our Los Angeles office. He has more than 40 years of experience and has worked on hundreds of rate studies in California.

Gina DePinto, APR (Accredited in Public Relations), will lead our effort to assist the City’s communications team with public outreach and education activities. Gina is a Manager with Raftelis based in Orange County. She has more than 34 years of public relations experience. Prior to joining Raftelis, Gina served as the Communications Manager for the County of Santa Barbara and led communications for the Orange County Water District.

Why Raftelis?

1. Extensive California Expertise. We have served municipal water and sewer utilities across California. We are intimately familiar with local conditions and know the revenue increases, reserve policies, and rate structures of comparable utilities across California.

2. Proposition 218 Cost-Based Rate Specialists. Proposition 218 requires that water and sewer rates be demonstrably based on costs. We are experts at cost-based rates and have worked with other water agencies facing legal challenges over their tiered rates designed by other consultants.

3. Depth and Breadth of Resources. Raftelis is a national rate consulting firm with more than 170 consultants including financial analysts, economists, engineers, communications professionals, and environmental management specialists. These resources can be accessed at any time to assist the City.

Local utility and government agencies partner with Raftelis to improve their financial condition, plan for the future, and communicate effectively with their customers. Our team can successfully complete the water and sewer studies and provide significant value to the City.

Raftelis is excited to have the opportunity to assist the City with this critical study. If you have any questions, please don't hesitate to contact me using the following contact information.

Sincerely,

John Wright, CPA, Senior Manager (authorized to bind the firm) 24640 Jefferson Avenue, Suite 207, Murrieta, CA 92562
Phone: 951.395.1674 / Email: [email protected]

Page 201 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 3

EXECUTIVE SUMMARY
Executive Summary
The City must fund advanced metering infrastructure (AMI), financial system upgrades, and $6.6 million in water/sewer capital improvement projects over the next four years. In addition, utility operational expenses are increasing, inflation remains high, and the City experienced reduced revenues in FY 2023 due to water shortages.

The City is seeking an expert consultant to complete comprehensive water and sewer service rate studies, develop a drought rate structure, and evaluate water/sewer facilities and capacity fees for its Public Works Department. The study’s outcome will be proposed water and sewer rates and charges for FY 2025 – FY 2029. New rates will first be implemented on July 1, 2025. Key elements of the required scope of services include the following for each utility service:
• 10-year financial plans, revenue requirement projections, and recommended debt service and reserve funding policies
• Cost-of-service analysis and proposed rates for water and sewer utility services • Evaluation of the financial planning and revenue requirement impacts of the proposed budgets and rates of the Three Valleys Municipal Water District, the Six Basins Watermaster, the Los Angeles County Sanitation District, and other relevant wholesale suppliers • Draft and final rate study reports that provide a detailed administrative record of the assumptions and analytical methods used in the rate studies
• Development of a water budget for landscape irrigation customers • Evaluation of potential bill impacts created by proposed rates • Rate survey and analysis comparing how the City’s rates compare to neighboring agencies and utilities • Analysis of impacts of projected new development and redevelopment on City rates • Presentations at one or two rate workshops with City Council and City staff • Two in-person and two virtual community meetings to inform stakeholders of proposed rate changes • Drafting of the Proposition 218 notice and presentation of the study at a Proposition 218 hearing • Microsoft Excel rate model(s)

An outline of our proposed project tasks is listed below. These tasks are discussed in detail later in the project approach section of this proposal.
• Task 1: Project Initiation and Management
o Initial Data Request
o Project Kickoff Meeting
o Project Management
• Task 2: Analysis of Customer Water Consumption Characteristics and Demand Forecasting o Analysis of Customer Water Consumption Characteristics o Demand Forecasting
• Task 3: Financial Plan and Revenue Requirement Forecasting o Review and Evaluate City Financial Policies and Procedures (Each City Utility Service) o Projection of Operating Cash Flows
o Financial Plan Optimization
o Revenue Requirement Projection
• Task 4: Cost-of-Service Analysis

Page 202 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 4

o Test-Year Revenue Requirement
o Cost Functionalization
o Allocation of Costs to Cost Causation Components
o Determination of Customer Class Units of Service
o Distribution of Costs to Customer Classes
o Pumping Zone Charges
• Task 5: Rate Design
o Proposed Rates and Rate Structure Alternatives
o Water Budget Rate Structure for Irrigation Customers
o Potential Pass-Through Adjustments
o Pumping Zone Elevation Charges
o Comprehensive Bill Impact Calculations
• Task 6: Drought Charge Analysis
• Task 7: Capacity Fee Studies
o Determination of the Calculation Methodology
o Valuation of the System Infrastructure
o Determination of Customer Demand
o Calculation of the Capacity Fee
• Task 8: Rate and Bill Survey Comparative Analysis
• Task 9: Rate Workshops
• Task 10: Community Meetings
• Task 11: Rate Study Reports
o Creation of a Detailed Administrative Record
o Collaboration with Legal Counsel
o Review and Comment by the City
• Task 12: Proposition 218 Notice Preparation and Proposition 218 Hearings • Task 13: Microsoft Excel Financial Model
o Model Functionality
o Model Training

Page 203 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 5

SCOPE OF WORK
Project Approach
The scope of work provided below is based on the City’s RFP and our experience conducting water and sewer utility cost-of-service studies for utilities in California and throughout the United States.

Task 1: Project Initiation, Management, and Kick-Off
Initial Data Request
Immediately upon receiving the notice to proceed, Raftelis will submit a comprehensive data request to the City seeking information such as customer consumption data, budgets, CIP projections, financial plans, engineering master plans for each utility service, and the Urban Water Management Plan.

Project Kickoff Meeting
As soon as possible after receiving the notice to proceed, an in-person kick-off meeting will be held. Topics of discussion will include:
• Information on the operations of each utility service including:
o Customer demographics, consumption characteristics, and land-use patterns o Rate structure concerns and pricing objectives
o Major infrastructure
o Projected capital expenditures for the water and sewer utility systems o Outstanding principal balances for debt used to finance system infrastructure o Engineering master plans for the water and sewer utility systems o Financial policies
o Legal/regulatory issues
o Key City Council and external stakeholder concerns/perspectives • City and Raftelis points of contact and communications protocols • Confirmation of project objectives, deliverables, and schedule • Required City staff resources

Project Management
• Timely identification of project issues/challenges
• On-going model QA/QC by the Project Director, Project Manager, and Subject Matter Experts

DELIVERABLES:
• Pre-kick-off meeting data request
• In-person kick-off meeting
• Kick-off meeting agenda and meeting minutes
• Project schedule with key milestones within two weeks after the kick-off meeting

Page 204 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 6

Task 2: Analysis of Customer Water Consumption Characteristics and Demand Forecasting
Analysis of Customer Water Consumption Characteristics
The analysis of customer water consumption characteristics is critical to developing the demand forecast that underlies the water and sewer financial plans, allocating costs to customer classes, and determining fixed and variable rates. After obtaining the City’s actual historical customer billing data for the period FY 2021 – FY 2023, Raftelis will seek to analyze the following types of information for each major customer type/land use:
• Account growth by meter size
• Monthly, seasonal, and annual consumption
• Average day, maximum day, and maximum hour consumption • Water consumption by pumping elevation zones
• Winter average consumption as a proxy for indoor consumption • Estimates of indoor and outdoor consumption on a per account and gallons per capita day (GPCD) basis • The correlation between water consumption and irrigable area for irrigation customers • Consumption during drought stage emergencies

Demand Forecasting
Raftelis will prepare comprehensive demand forecasts for the City’s utility services by major customer type for the 10-year period FY 2025 – FY 2034. The water demand forecast will be compared to the demand projection in the City’s Urban Water Management Plan, other internal planning documents, and the Three Valleys Municipal Water District planning documents. The demand forecast will serve as the foundation of the financial plans and revenue requirement projections prepared by Raftelis. It will be developed using Microsoft Excel to allow for scenario modeling.

DELIVERABLES:
• Detailed understanding of customer water consumption characteristics • Comprehensive forecast of billed water consumption for the 10-year period FY 2025 – FY 2034 • Comprehensive estimate of billed sewer discharges for the 10-year period FY 2025 – FY 2034

Task 3: Financial Plan and Revenue Requirement Forecasting Raftelis Approach to the Financial Planning Process
Utility financial planning is an iterative process in which the “optimal” capital financing strategy must be identified.

This requires achieving the correct balance between CIP financing provided by rate revenues, impact fees, grants, and external debt financing.

A comprehensive and correctly developed financial plan must be based on a realistic projection of customer water demand under normalized climate conditions and reasonable assumptions of customer account growth. The Microsoft Excel financial planning models developed by Raftelis will allow City staff to vary inputs for items such as customer account growth, average billed water consumption per account, average contributed sewer flow per account, CIP expenditures and financing strategies, operating expenses, inflation rates, etc.

Figure 1 on the following page illustrates the financial planning process that will be used by Raftelis for each of the City’s utility services.

Page 205 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 7

Review and Evaluate City Financial Policies and Procedures (Each City Utility Service) • Review and Evaluation of Financial Policies – Policies related to the use of external debt financing by CIP type, target and contractual minimum debt service coverage ratios, current and target credit rating, cash reserve minimum, and maximum targets. Raftelis will propose modifications to the City’s financial policies, as appropriate.

Projection of Operating Cash Flows
• Revenue at Existing Rates – Projection of rate revenue under existing rates using the demand projections developed in Task 2

• Operations and Maintenance Costs – Projection of O&M costs that incorporate cost inflation factors, changes in costs created by the implementation of new technologies, or planned organizational restructuring o Identification of the appropriate inflation factors to use in projecting O&M costs o Identification of ongoing costs that are not under City control and thus appropriate for recovery via an annual “pass thru” adjustment (e.g., wholesale water supply costs, wholesale sewer service costs)

• Capital Improvement Program Expenditures – Projection of CIP costs for repair and replacement (R&R) capital, growth-related expansion capital, and regulatory compliance-related CIP o Identification of the appropriate construction cost inflation factors to use in projecting CIP costs

• Debt Service Expenditures –Projection of existing and proposed debt service based on the capital financing strategy selected.

Financial Plan Optimization
• Scenario Analysis – Analysis of required rate increase under different utility sales for each service, CIP expenditure, and debt service alternatives. Modeling of projected cash reserve and debt service coverage for each year of the planning horizon.

Page 206 of 252 ends

Financial Data
• Rate revenue projections
• Other income
• OpEx/CapEx Budget
Assumptions
• Customer growth
• OpEx inflation
• Cap Ex inflation
• Changes in usage patterns
Financial Policies
• Operating reserve
• Cap ital rese rve
• Debt serv ice cove rage
• Other fisca l polic ies
Figur e 1: Financial Planning Process
Financial Plan Forecast
• Rate revenue
• Other operating revenue
• Operating expenses
• Capital expend itures
• E xisting debt serv ice
• Transfers
Apply Constraints
• Reserve targets
• Debt service coverage
requ irements
• Funding options
Apply Revenue
Adjustments
• Equal annua l
• As-needed
• Staggered
Financial Plan
Alternative 1
Financial Plan
Alternative 2
Financial Plan
Alternative 3
Council Agenda Packet - July 1, 2024
RAFTELIS 8

• Drought Risk Assessment (Water Service) – Assessment of the risk of water sales revenue shortfalls due to short- and long-term drought events. Development of proposed financial/rate mitigation measures.

• Optimal Capital Financing Scenario – Development of an “optimal” capital financing strategy that balances the mix of rate revenue, capacity fee, and external debt funding to fund capital improvements.

Finalized financial plan in full compliance with all City financial policies.

Revenue Requirement Projection
• Projected total system revenue requirement from rates for the 10-year period FY 2025 – FY 2034 for water and sewer utility services

DELIVERABLES:
• Financial plans and revenue requirement projections for the 10-year period FY 2025 – FY 2034 for water and sewer utility services
• Recommendations for debt service and reserve funding policies

Task 4: Cost-of-Service Analysis

Raftelis Approach to the Cost-of-Service Process
The procedures used by Raftelis in water and sewer cost-of-service studies are based on industry-accepted methods published in AWWA Manual M1 and WEF Manual 27. The use of industry-standard procedures corresponds to the cost-of-service mandate contained in California Proposition 218. Figure 2 illustrates the multi-step cost allocation process used by Raftelis for a water cost-of-service study.

Water Utility Cost-of-Service Analysis
• Test-Year Revenue Requirement – Determine the test year revenue requirement based on the Task 3 financial planning process

• Cost Functionalization – Assign the net book value or replacement cost of existing utility infrastructure to the correct functional categories in order to allocate annual capital costs. Assign test-year capital costs (PAYGO financing and projected debt service), O&M expenses, and non-rate revenue offsets to the correct functional categories
Figure 2: Water Cost-of-Service Process
Step 1
Revenue
Requirement
Operation and Maintenance
Expense
Debt service
Capital Costs
Transfers
Step 2
Functionalize
Costs
Source of Supply
Treatment
Storage & Distribution
Meters and Billing
Step 3
Allocate Functions
to Demand Characteristics
Base
Max Day
Max Hour
Metering
Fire Protection
Step 4
Distribute Costs to
Customer Classes
Residential
Multifamily
Commercial / Industrial
Irrigation

Page 207 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 9

• Allocation to Cost Causation Components – Allocate test-year capital cost, O&M expenses, and non-rate revenue offsets to the correct cost causation components such as water supply, base, maximum day, and maximum hour demand

• Customer Class Units of Service – Determine customer class units of service. Units of service include class average day demands, peak demands, number of bills, and number of 3/4” or 1” meter equivalents

• Customer Class Cost-of-Service – Distribute the allocated test-year capital costs, O&M expenses, and non- rate revenue offsets to customer classes based on each of their proportionate share of demands, bills, and equivalent meters. Compare the class cost-of-service to the revenue projected under existing rates. This comparison will show the percentage change in the classes based on the cost-of-service process

• Pumping Zone Charges – Estimate of the capital and operational costs incurred to serve each pumping zone

Sewer Utility Cost-of-Service Analysis
• Test-Year Revenue Requirement – Determine the test year revenue requirement based on the Task 3 financial planning process

• Allocation to Cost Causation Components – Allocate test-year capital cost, O&M expenses, and non- rate revenue offsets to the correct cost causation components such as flow, biochemical oxygen demand, and suspended solids

• Customer Class Units of Service – Determine customer class units of service. Units of service include class billable flows, infiltration and inflow contributions, and the strength of customer discharges

• Customer Class Cost-of-Service – Distribute the allocated test-year capital costs, O&M expenses, and non-rate revenue offsets to customer classes based on each of their proportionate share of demands, bills, and equivalent meters. Compare the class cost-of-service to the revenue projected under existing rates.

This comparison will show the percentage change in the classes based on the cost-of-service process

DELIVERABLES:
• Water service customer class cost-of-service
• Sewer service customer class cost-of-service

Page 208 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 10

Task 5: Water and Sewer Rate Design
The City currently charges a bi-monthly flat volumetric rate for water customers by Zone and fixed bi-monthly charges by meter size. Existing water rates are shown below.

Water Rate Service Zone Bi-Monthly Charge
Zone I $3.92 per 1,000 gallons
Zone II $4.02 per 1,000 gallons
Zone III $4.21 per 1,000 gallons
Zone IV $4.42 per 1,000 gallons
Zone V $4.53 per 1,000 gallons
Zone VI $4.77 per 1,000 gallons
Plateau $5.37 per 1,000 gallons

Water Rate Meter Service Charge Bi-Monthly Charge
5/8” $36.40
¾” $40.00
1” $51.00
2” $106.00

The City currently charges a bi-monthly flat volumetric rate for sewer customers. Existing sewer rates are shown below.

Sewer Rate Service Type Bi-Monthly Charge
Flat Rate $23.43 per 1,000 gallons
Commercial, Industrial, and Institutional Rate $23.63 per 1,000 gallons

Proposed Rates and Rate Structure Alternatives
After the completion of the cost-of-service analyses described in Task 4, Raftelis will work with the City staff to develop potential alternative water and sewer rate structures. Our proposed consulting fee assumes we will evaluate a maximum of two alternative water rate structures and one alternative sewer rate structure.

Compliance with Proposition 218 and other California legal requirements will be of paramount importance when considering potential alternative rate structures.

It goes without saying that the alternative rate structures recommended by Raftelis (if any) will produce adequate revenues to maintain water and sewer utility financial sufficiency over short-, medium-, and long-term planning horizons. When considering potential alternative rate designs, Raftelis will perform the following analysis:
• Evaluation of the effectiveness of the current water and sewer rate structures in achieving the City’s pricing and policy objectives
• Appropriateness of the current water and sewer rate structures considering the customer class definitions identified in the water and sewer cost-of-service processes (Tasks 4) • Ability of potential alternative rate structures to achieve the City’s desired pricing and policy objectives • Ability of potential alternative rate structures to fully comply with Proposition 218 and other applicable California regulatory requirements
• Impact of potential alternative rate structures on customer bills (monthly and annual) across a broad range of demand (i.e., very low consumption to very high consumption customers)

Page 209 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 11

• Ability of customers to easily understand potential alternative rate structures and the ability of the City to administer such alternatives
• Impact of potential alternative rates on water and sewer fund revenue stability/volatility

Water Budget Rate Structure for Irrigation Customers
As part of the rate design process, we will develop a water budget structure for landscape irrigation customers that aligns with the water use reduction and conservation objectives outlined in the City’s Urban Water Management Plan.

Overarching Awareness of Proposition 218 Requirements
From the initial kickoff meeting through the development of proposed rates, we stay focused on the need to comply with the intent and requirements of Proposition 218. Throughout the financial planning, cost allocation, and rate design process we will work with City staff and legal counsel to help achieve this objective. While we strive to comply with the intent and requirements of Proposition 218, it is important to note the Raftelis shall have no obligation to indemnify the District or any Indemnitee against liability for claims by a third party for failure to comply with its obligations under Article XIII D of the California Constitution (Proposition 218).

Awareness of California Regulatory Requirement and Litigation Raftelis is not a law firm, but we do closely follow litigation that may have bearing on the water rate structures implemented by our clients. For example, the California Court of Appeals is currently considering two cases related to the validity of tiered rate structures. Similarly, Senate Bill AB 1157, which become law in 2022, requires that indoor water use be a maximum of 47 gallons per capita per day (gpcd) in 2025 declining to 42 gpcd in 2030.

Another example is the recently enacted Assembly Bill 755 which requires utilities to quantify the cost of serving the top 10% of water users. Our awareness of litigation and changing regulatory requirements enhances our ability to serve the City.

Potential Pass-Through Adjustments
As part of the rate design process, we will evaluate the creation and implementation of pass-through adjustments for costs such as water supplies and electric power that are not under the City’s direct control.

Pumping Zone Elevation Charges
The water service commodity rates will include pumping zone elevation charges as determined during the Task 4 Cost-of-Service process.

Comprehensive Bill Impact Calculations
Raftelis will calculate comprehensive bill impacts for the City’s existing and proposed water and sewer rates. Bill impacts will be calculated for multiple customer land use types and across a wide distribution of monthly and annual consumption volumes. This will ensure that City staff is fully informed about potential customer bill ramifications.

DELIVERABLES:
• Proposed 5-year water and sewer rates for the period FY 2025 – FY 2029, including two alternative rate structures for water service and one alternative for sewer service (a total of 3 alternative rate structure) • Creation of a water budget structure for landscape irrigation customers • Recommendation regarding implementing pass-through adjustments for costs such as water supplies and electric power that are not under the City’s direct control • Comprehensive customer bill impacts

Page 210 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 12

Task 6: Drought Charge Analysis
Raftelis will develop a drought charge rate structure for implementation during water shortage emergencies. The tasks we will complete as part of this process will include:
• Assessing the effectiveness of the City’s current drought charges based on historical meter data • Reviewing the relative success of drought charges used by other agencies with water budget rate structures • Reviewing and updating the City’s existing drought charge ordinance and making recommendations on modifications to comply with the State of California requirements • Estimating the decline in billed water consumption associated with each drought stage • Estimating the decline in billed water sales revenues and expenditures associated with each drought stage • Developing and recommending new drought charges needed to maintain utility financial health • Exploring other mitigation techniques for declines in water sales revenues with City staff, such as increases in cash reserves or revenue from fixed charges

DELIVERABLES:
• New, proposed drought rates

Task 7: Water and Sewer Capacity Fee Studies
To initiate the water and sewer capacity fee studies, we will consult with City staff to understand how capacity fees are currently assessed and what costs they recover. Based on the understanding gained from this discussion we will develop a proposed approach and provide the City with a comprehensive data request. We will then review all relevant documentation, including the water and sewer engineering master plants, the City’s Urban Water Management Plan, and the City’s rules/regulations for capacity fees. A key decision point in the capacity fee calculation process is the determination of the appropriate methodology to use. There are three industry-standard methods for the calculation of capacity fees:
• Buy-In Approach: Appropriate for utilities with existing available infrastructure capacity to meet projected demand
• Incremental Approach: Appropriate for utilities with existing infrastructure capacity constraints that must construct significant new infrastructure to meet projected demand • Hybrid Approach: Appropriate for utilities with some available existing infrastructure capacity but also a need to construct new infrastructure to meet projected demand

The capacity fees we develop will be based on industry practices and in full compliance with California legal standards as contained in California Government Code Sections 6600 - 66025. This will include compliance with the requirements of California’s Mitigation Fee Act and general legal principles related to impact fees. Under California law, “fees,” as opposed to “taxes,” can be adopted without the two-thirds vote of the public as required by Proposition 13. The State of California Mitigation Fee Act, also known as AB 1600 and codified in Sections 66000-66025 of the California Government Code, establishes a requirement for “nexus” in the establishment of a development fee. The nexus requirements are that: 1) a development fee is directly related to the impacts of the development and 2) the fee is roughly proportional to the impacts of the project.

Page 211 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 13

Task 7a: Water Capacity Fee Study
Determination of the Calculation Methodology
Raftelis will provide information to the City on the industry standard capacity fee calculation methodologies (mentioned above) and work with the City to choose the appropriate methodology to be used in the City’s water capacity fee study.

Valuation of Water Infrastructure
Informed by the chosen calculation methodology, Raftelis will develop a water capacity fee model that reflects either, or both, of the following:

• Existing Infrastructure: An infrastructure valuation for each major existing functional component of the water system. For existing assets, the valuation will be based on “replacement cost less deprecation” (RCLD). The replacement cost will be developed using the construction cost inflation factors published in the Engineering News-Record (ENR CCI). The value of growth-related infrastructure will be based on present value as expressed in 2024 dollars. If the City’s fixed asset subsidiary ledger does not contain an adequate level of information to develop a replacement cost estimates using these construction cost inflation factors (for example, inadequate information on the function performed by major assets), then an alternative valuation method will be selected in consultation with City staff.

• Planned Infrastructure Expansion: The present value of projected water growth-related infrastructure expenditures contained in the City’s current capital improvement plans

As part of the infrastructure valuation process, outstanding debt principal used to finance existing system water infrastructure will be subtracted from the RCLD valuation. Accumulated cash reserves will be added to the RCLD valuation.

Buy-In Method
The buy-in approach is most suitable when the current utility system has excess capacity to accommodate growth. It is also the most common methodology. The buy-in approach rests on the premise that new customers are entitled to service at the same “price or cost” as existing customers. However, existing customers have already developed the facilities that will serve new customers, including the costs associated with financing those services. Under the buy -in approach, new customers pay an amount equal to the net investment (accounting for depreciation) already made by existing customers, based on the value of the utility. The value is normally established using the cost approach of replacement cost less depreciation. There are two variations of the buy-in approach: the system buy-in and the equity buy-in. For the system buy-in, the system value is divided by the ultimate system demand to determine the proposed capacity fee. For the equity buy-in, the system value is divided by the current demand.

Incremental Method
The incremental method is a forward-looking calculation and can be used when substantial new investment in capital facilities is required to serve new customers. Stated simply, it is the value of the new facilities divided by the total capacity of the new facilities.

Hybrid Method
A hybrid approach can be used when new customers will use both current excess capacity in existing facilities and new facilities. Mathematically, it is the weighted average of the buy-in method and the incremental method.

Page 212 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 14

Determination of Customer Demand
For the Buy-In Method, Raftelis will estimate the number of equivalent residential units (ERU) currently served by the City’s existing water system. The number of ERUs will reflect the number of equivalent connections of the appropriate meter size (e.g., 3/4”) calculated for the City’s water system using your current meter technologies and associated maximum meter flow rates. For the Incremental Method, Raftelis will project the number of future ERUs that can be served by planned growth -related infrastructure additions. This estimate wi ll be based on residential customer household density and GPCD water usage. As part of this process, Raftelis will analyze billing data for existing customers, consult your current Urban Water Management Plan , and the most recent engineering master plan.

Calculation of the Water Capacity Fee
Based on the work completed for the calculation methodology and customer demand analysis, Raftelis will calculate the following:
• The baseline water capacity fee expressed on a $/ERU basis (e.g., for a 3/4” equivalent connection) • A water capacity fee assessment schedule for each water meter size served by the City’s water system

Task 7b: Sewer Capacity Fee Study
The process used to calculate the sewer capacity fees will be similar to that used for the water capacity fee. Raftelis will work with the City to determine the basis which is appropriate for the sewer capacity fee study. At present, Raftelis assumes the City will wish to use ERUs as the basis for calculating sewer capacity fees. However, other metrics may be used.

Determination of the Calculation Methodology
Raftelis will work with City staff to determine the appropriate methodology for the sewer capacity fee study (i.e., Buy-In, Incremental, Hybrid).

Valuation of Sewer Infrastructure
The RCLD of sewer infrastructure will be calculated using the following key inputs:
• Existing and planned future sewer infrastructure directly owned by the City • Existing and planned future sewer infrastructure shared with the Los Angeles County Sanitation Districts

As part of the infrastructure valuation process, outstanding debt principal used to finance existing system sewer infrastructure will be subtracted from the RCLD valuation. Accumulated cash reserves will be added to the RCLD valuation.

Determination of Customer Demand
Pending discussions with City staff, ERUs will be calculated based on the chosen ERU basis.

Calculation of the Sewer Capacity Fee
Based on the work completed in in the above sub-tasks, Raftelis will calculate the following:
• The sewer capacity fee expressed in a baseline $/ERU basis

DELIVERABLES:
• Recommendations for water and sewer capacity fees

Task 8: Rate and Bill Survey Comparative Analysis
A rate and bill survey of the Three Valleys Municipal Water District member agencies providing water utility service and corresponding sewer utility agencies will be completed. A comparison of the City’s existing rates, proposed rates, and sample bills will be made to each agency.

Page 213 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 15

DELIVERABLES:
• Rate and bill survey of the agencies specified by City in its RFP

Task 9: Rate Workshops
Our proposed consulting fee includes the estimated cost of two on-site rate workshops with City staff and City Council. This includes the development of presentations to ensure the City Council is well informed as to the status of the project as well as to discuss major milestones and decision points. All PowerPoint presentations are to be presented to the City’s Leadership Team prior to presentation to the City Council.

DELIVERABLES:
• Two on-site rate workshops with City staff and City Council • Review of all PowerPoint presentations by the City’s Leadership Team prior to presentation to City Council

Task 10: Community Meetings
Our proposed consulting fee includes the estimated cost of two in-person community meetings to inform the public of any rate changes and any reason for those changes prior to the Preposition 218 meeting. Planning for the community meetings will be conducted by Ms. Gina DePinto, APR (Accredited in Public Relations), our Community Outreach Subject Matter Expert.

Raftelis offers specialized communication outreach support for which we are prepared to provide any level desired.

We can provide significant value all along the spectrum from low to high. A higher level of support could mean developing a strategic communications and outreach plan on your behalf, or designing a robust suite of supporting communications tools, like bill inserts, postcard mailers, infographics, videos, and fact sheets.

We are experts at developing fact-based messages that are woven together to tell your story in ways that are easy for even the layperson to grasp. Our work goes beyond satisfying Proposition 218 requirements to:
• Build an appreciation for the value of water services • Properly frame the need for continued infrastructure investment • Explain – at a high level – how rates and fees are calculated • Communicate the potential changes and impacts for the typical customer

These elements will be core to the communication tools and pieces we develop in support of the City, including:
• A press release to announce the community meetings
• Social media content
• A set of frequently asked questions and answers for the City’s website and for use as talking points by City staff as well as elected officials

DELIVERABLES:
• Two in-person community meetings
• Community meeting PowerPoint presentations to be reviewed by the City Leadership Team prior to presentation
• Press release and social media content
• Frequently asked questions and answers
• Design of bill inserts

Page 214 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 16

Task 11: Rate Study Reports
Our approach to the report development process is to work collaboratively with the City’s legal counsel to ensure compliance with state law. Our approach includes:

• Creation of a Detailed Administrative Record – Raftelis prepares comprehensive rate study reports that fully document the assumptions, inputs, and analytical procedures used to develop proposed rates. Our reports provide clients with a detailed administrative record that can be referenced if rates are questioned or challenged in litigation.

• Collaboration with Legal Counsel – Maintaining a close partnership with City legal counsel throughout the rate study process is a priority. As complex, and potentially controversial, cost allocation or rate design cost recovery issues arise during the rate study process, we will request review and input from the City’s legal counsel.

• Review and Comment by the City – Raftelis welcomes the comprehensive review and comment of preliminary/draft reports by City staff, City legal counsel, and the City Board.

DELIVERABLES:
• Draft rate study reports for review by City Staff and City Council • Final rate study report

Task 12: Proposition 218 Notice Preparation and Proposition 218 Hearings
Raftelis’ in-house Strategic Communications will prepare rate adjustment notices for mailing within the required 45- day noticing period prior to holding the public hearing. While requirements of Proposition 218 notifications are easy to satisfy, too many utilities miss the opportunity to strategically educate and inform ratepayers. Raftelis has designed countless Proposition 218 notifications that go beyond the minimum dictated by statute to deliver visually appealing pieces that customers want to read. The notices will outline the proposed rate changes, explain the right to challenge the rates, and will meet and comply with all noticing requirements. Raftelis will also prepare a pass- through adjustment formula for water supply-related costs. Once these arrive in mailboxes, City customers will not only be properly notified, but will understand the City’s need and be more likely to support rate adjustments.

Raftelis will deliver final press-ready documents for the City to print and mail notices to all parcel owners and customers of record.

Our proposed consulting fee includes two in-person presentations to City Council for the Proposition 218 process.

The first presentation will be to seek City Council’s authorization to issue a Proposition 218 notice. The second presentation will be at the formal Proposition 218 hearing. All presentation material prepared by Raftelis will be provided to the City Leadership team for review prior to the City Council meetings.

DELIVERABLES:
• Proposition 218 presentation seeking City Council authorization and formal Proposition 218 hearing presentation
• Proposition 218 notice preparation

Page 215 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 17

Task 13: Financial Model and Training
Raftelis creates financial models using Microsoft Excel. We do not use canned “one-size-fits-all” models. Instead, we build financial models specifically designed to the specifications provided by our clients.

Model Functionality
• Depending on the City’s needs and specifications, the model functionality can include:
o Inflation and escalation assumptions
o Forecasting up to 30 years into the future
o Ability to enter customer class data, including account growth and billed consumption per account o Scenario modeling to analyze alternative CIP expenditure, O&M expenses, and debt service payment projections
o Specific metrics or financial policies that must be met as part of the financial plan o The cost allocation component of the model can allow City staff to vary inputs for items such as customer maximum day and maximum hour demand factors
o The rate update component of the model will enable City staff to vary inputs such as the revenue contribution made by volumetric rates versus fixed charges and then view the resulting customer bill impacts

Model Training
• Our proposed consulting fee includes four hours of virtual model training for City staff

PLANNED MEETINGS:
• Virtual meetings as required with City staff

DELIVERABLES:
• Microsoft Excel financial model
• Four hours of onsite model training

Raftelis will develop a
customized financial model
that incorporates a
dashboard to allow you to
easily run scenarios and see
the impacts in real time.

Shown here is a sample
dashboard that we developed
for another project.

Page 216 of 252 ends

.._ .... "' Ill
~~-
c•al:P,--.

QP__,,..,,
~..-cPC....~(11.0Da'I
~Barl4"---..n 11DOCh
--1 ......... -.......111"-
- - - - - - - - - -·- :: : - : -:= · - · - · - · - · -..... , .... , .......... , , .....

CAS H BASIS FINANCIAL PAO FORIIIA UTILIIY BASIS FINANCIAL PAO fORMA - -
.. - -------
MO NTHLY BILL~
m•
• ~ 111 w• ™• ffln
lllJt utM
0 .. JJIH 11116
""
.. -
.
~
I
CIP NffO S
_._ .. .,. 11a a:N az2 _, a•• ms
._... __ ·-·--·-
■ - --____ .,_ e.-_,._

OEBT COVERAGE
l ~ a 2'Q )14 111 SM,.>• )II

RETURN ON RAH BAS E
Ill NI' 172111
~
ANNUAL O[PR[CIATION
M l,5,l1MWISl151157m
=~ ~
. -••--------aa
Council Agenda Packet - July 1, 2024
RAFTELIS 18

TASKS

1. Project Initiation,
Management, and Kick-Off
n

2. Analysis of Consumption
and Demand
nn

3. Financial Plan
Development
nn

4. Cost-of-Service Analysis nn

5. Water and Sewer Rate
Design
nn

6. Drought Charge Analysis nn

7. Water and Sewer
Capacity Fee Studies
n nn

8. Rate and Bill Survey
Comparative Analysis
n

9. Rate Workshops n n

10. Community Meetings nn nn

11. Rate Study Reports nn

12. Proposition 218
Preparation and Hearings
nn nn

13. Financial Model and
Training
nn
n In-person Meetings
n Web Meetings
n Deliverables
2024

MAY JUN JUL AUG SEP OCT NOV DEC APR MAY JUN
2025

JAN FEB MAR

Page 217 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 19

SCHEDULING AND CONTROL METHODOLOGY
Raftelis employs several management strategies to heighten the effectiveness and efficiency of the services we provide to our clients. We place a high priority on being responsive to our clients and, as we determine scope and staffing for each project, we carefully consider our workload and the availability of resources to meet client needs and project schedules.

Each week, the Raftelis management team participates in a conference call to review the number of consulting hours required to meet the needs of our clients during the upcoming week. This weekly meeting allows our project managers to deploy our consulting staff in a flexible manner that ensures a suitable level of hours will be devoted to the City even during periods of accelerated deadlines and heavy work requirements.

Our project management conference calls provide Raftelis project managers with opportunities to effectively distribute work within a project. However, it is equally important that consulting hours spent on the project are tracked and compared to project budgets on a real-time basis. Raftelis uses project management software to monitor project progress, consulting hours, and budgets.

If selected for this project, we will conduct a comprehensive scoping meeting with the City staff and our project team to discuss the work plan to ensure we are in agreement on how best to achieve the City’s goals and objectives.

This meeting will include a discussion of our proposed schedule and the City’s timing requirements for meetings, milestones, and deliverables, so that our teams have a full understanding of what to expect on the project.

Throughout the project, we will provide the City with frequent updates so that you are constantly aware of the status of the project and our progress towards meeting milestones and deadlines.

QUALITY ASSURANCE PROCEDURES
QA/QC is performed at two project milestones: 1) at the completion of the financial plan and 2) after the completion of the cost-of-service and rate design. Our quality assurance/quality control (QA/QC) procedure is as follows:

1. Built-In Model Checks: The model has several built-in checks to ensure that the total expenditures are included. The built-in checks include: 1) ties to the clients total operating budget; 2) a revenue requirement check to ensure rates are collecting the right amount of revenue derived from the financial plan; and 3) a revenue proof to ensure rates are designed to collect the total revenue requirement.

2. Project Manager Review: The Project Manager reviews each model worksheet at each project milestone.

3. Senior Consultant Review: A Senior Consultant, who is not involved with the project, performs a complete model review. This review includes both modeling integrity and adherence to common rate setting practices.

We use an analyst not involved with the project to provide a fresh perspective.

In addition, Raftelis has a 40-point checklist for QA/QC to check the most common modeling oversights. A portion of the checklist is shown below.

Item Worksheet Review Step
1 Revenue Confirm the rates are bimonthly or monthly
2 Revenue Confirm the latest rates are in the model
3 Revenue Is calculated revenue within 1 to 2 % of actual revenue? 4 Revenue Check revenue from year-to-year, does it vary much? 5 Revenue Do any one time revenue items need to be removed like sale of assets? 6 O&M Does the total O&M entered for a particular year tie back to the source document? If not, are you clear why not?

Page 218 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 20

7 O&M Has depreciation been removed?
8 O&M Are there any capital items in the budget that need to be removed so as not to double count.
9 O&M If debt is shown in the budget, is it also in the debt sheet? 10 O&M Review the year-to-year changes in O&M expenses, is there a big change in one year, if so why?
11 O&M Water purchase costs - do they tie back to actuals for a year? 12 O&M Are calculated water purchase costs close to budget for years that have a water purchase cost budget?

EXAMPLE REPORT
We have included a recent example reports in the Appendix.

Page 219 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 21

Cost Proposal
The following tables provide a breakdown of our proposed fees for this project. These tables include the estimated level of effort required for completing each task and the hourly billing rates for our project team members. Expenses include costs associated with travel and a $10 per hour technology charge covering computers, networks, telephones, postage, etc.

WATER COST PROPOSAL

JW SP TC GD CO JG SS Admin Total

1. Project Initiation,
Management, and
Kick-Off

0.5 4 1 1 1 1 1 1 1 11 $3,359

2. Analysis of
Consumption and
Demand
1 2 3 10 15 $3,495

3. Financial Plan
Development 1 2 3 12 17 $3,885

4. Cost-of-Service
Analysis 1 2 1 1 2 16 22 $5,150

5. Water and Sewer
Rate Design 1 4 1 1 4 12 20 $5,600

6. Drought Charge
Analysis 1 1 1 1 8 11 $2,595

7. Water and Sewer
Capacity Fee Studies 1 4 4 28 36 $7,960

8. Rate and Bill
Survey Comparative
Analysis
1 1 8 9 $1,855

9. Rate Workshops 1 6 1 1 3 2 2 15 $4,893

10. Community
Meetings 1 8 18 2 28 $8,438

11. Rate Study
Reports 1 8 1 1 4 20 2 36 $8,720

12. Proposition 218
Preparation and
Hearings
1 8 1 16 1 2 28 $8,553

13. Financial Model
and Training 1 6 6 $1,170
8 3.5 49 7 5 38 26 1 123 7 254
$320 $400 $360 $285 $285 $220 $185 $100
$15,680 $2,800 $1,800 $10,830 $7,410 $220 $22,755 $700 $62,195 Total Fees $62,195
Total Expenses $3,478
Total Fees & Expenses $65,673
Tasks
Web
Meetings
In-
person
Meetings
JW - John Wright
SP - Sudhir Pardiwala
TC - Todd Cristiano
GD - Gina DePinto
CO - Cameron Okie
JG - Journ Galvan
SS - Summer Simpson
Hours Total
Fees &
Expenses
Total Meetings / Hours
Hourly Billing Rate
Total Professional Fees

Page 220 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 22

SEWER COST PROPOSAL

JW SP TC GD CO JG SS Admin Total

1. Project Initiation,
Management, and
Kick-Off

0.5 4 1 1 1 1 1 1 1 11 $3,359

2. Analysis of
Consumption and
Demand
1 1 1 8 10 $2,185

3. Financial Plan
Development 1 1 1 2 $625

4. Cost-of-Service
Analysis 1 2 1 1 1 10 15 $4,035

5. Water and Sewer Rate
Design 1 2 2 6 10 $2,630

6. Drought Charge
Analysis 1 0 $0

7. Water and Sewer
Capacity Fee Studies 1 2 1 4 20 27 $6,850

8. Rate and Bill Survey
Comparative Analysis 1 1 6 7 $1,465

9. Rate Workshops 1 4 3 2 2 11 $3,523

10. Community
Meetings 1 6 14 2 22 $6,598

11. Rate Study Reports 1 4 1 1 4 16 2 28 $7,180

12. Proposition 218
Preparation and
Hearings
1 6 8 1 2 17 $5,123

13. Financial Model and
Training 1 2 2 $460
9 3.5 32 4 3 26 18 57 15 7 162
$320 $400 $360 $285 $285 $220 $185 $100
$10,240 $1,600 $1,080 $7,410 $5,130 $12,540 $2,775 $700 $41,475 Total Fees $41,475
Total Expenses $2,558
Total Fees & Expenses $44,033
Tasks
Web
Meetings
In-person
Meetings
JW - John Wright
SP - Sudhir Pardiwala
TC - Todd Cristiano
GD - Gina DePinto
CO - Cameron Okie
JG - Journ Galvan
SS - Summer Simpson
Hours Total
Fees &
Expenses
Total Meetings / Hours
Hourly Billing Rate
Total Professional Fees

Page 221 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 23

Hourly Billing Rates
Project team hours and expenses will be billed on the same invoice. Expenses related to travel will be billed at cost.

Additional services outside the agreed upon scope of work will be billed on a time and materials basis. Raftelis’ billing rates can be found below. These rates will be in effect for calendar year 2024 and will then increase annually by 3% unless specified otherwise by contract.

POSITION HOURLY BILLING RATE**
Chair/Chair Emeritus $500
Chief Executive Officer/President $450
Executive Vice President $400
Vice President $360
Senior Manager $320
Principal Consultant $295
Manager $285
Senior Consultant $250
Consultant $220
Creative Director $220
Associate $185
Graphic Designer $160
Analyst $135
Administration $100
Technology Charge* $10

*Technology/Communications
Charge: This is an hourly fee
charged monthly for each hour
worked on the project to recover
telephone, facsimile, computer,
postage/overnight delivery,
conference calls,
electronic/computer webinars,
photocopies, etc.

**For services related to the
preparation for and participation in
deposition and trials/hearings, the
standard billing rates listed above
will be increased by an amount up to
50 percent.

Page 222 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 24

REFERENCES
Experience & References

RAFTELIS HAS THE MOST EXPERIENCED UTILITY FINANCIAL AND MANAGEMENT CONSULTING PRACTICE IN THE NATION.

Our staff has assisted more than 1,700 public agencies and utilities across the U.S., including some of the largest and most complex agencies in the nation. In the past year alone, Raftelis worked on more than 1,300 financial, organizational, and/or technology consulting projects for over 700 agencies in 47 states, the District of Columbia, and Canada. Below, we have provided descriptions of projects that we have worked on that are similar in scope to the City’s project. We have included references for each of these clients and urge you to contact them to better understand our capabilities and the quality of service that we provide.

El Toro Water District CA
Reference: Dennis Cafferty, General Manager
24251 Los Alisos Boulevard, Lake Forest, CA 92630 / P: 949.837.7050 ext 223 / E: [email protected] Date: 2017 – 2023 / Team Member Role: Sudhir Pardiwala

Raftelis has assisted El Toro Water District (District) with the development of its rates on an ongoing basis since 2006. At that time, the District had not updated its water and wastewater rates or rate structure in more than 10 years and was operating at a deficit. Raftelis prepared a 12-year financial plan evaluating the operating and capital expenses, debt service, and reserve requirements. A cost-of-service analysis was conducted to review the equity of the rates and existing rate structures. The adopted rates, resulting from the cost-of-service study in 2006, unbundled rate components to convey the true cost of various service components and to continue to equitably pass on the cost of water, wastewater, and recycled water services to users.

RAFTELIS HAS PROVIDED FINANCIAL/

ORGANIZATIONAL/TECHNOLOGY ASSISTANCE

TO UTILITIES SERVING MORE THAN
25% OF THE U.S. POPULATION.

Page 223 of 252 ends

• • ' • • • • • • • • • • •
•• •• • • •
.. • • • • ·-• • ., • •
• •
·" • • .. • •
•
• • • • • • • •
• ~. • • • •• •
' • I • • , .
••
Council Agenda Packet - July 1, 2024
RAFTELIS 25

In 2009, the District engaged Raftelis to design a water budget rate structure for its residential and irrigation accounts to help promote water-use efficiency. Raftelis designed a water budget rate structure which ensured revenue stability, financial sufficiency, and provided the appropriate price signal for different supply costs and conservation program funding for the District. The following outlines the methodology used to develop the water budget rate structure:
• Indoor allocations varied by the number of occupants and outdoor allocations varied based on weather data and irrigable area
• The irrigable area was determined by taking the total parcel area less the building area acquired from the Assessors’ Secured Roll
• The allocation budgets considered irrigation efficiency and type of landscape

Next, Raftelis developed a water budget rate model that allowed the District to quickly view the impacts of alternative rates and budgets, to aid policy makers in making well-informed decisions in a timely manner. This tool proved invaluable when presenting the results in a graphical format to the District Board of Directors because it enabled them to easily see the impacts of different water budgets on their customers in real-time. As a result, the Board adopted the water budget rate structure in June 2010. To minimize rate shock to upper-tier users, Raftelis developed a three-phase implementation plan that slowly phased in Tier 3 and Tier 4 rates. The rate unbundling and phase-in implementation plan were found beneficial and useful for the District during public outreach and rate implementation. The findings and recommendations resulting from the Study were summarized and documented in the Study Report.

Since the water budget rate study, each year Raftelis was retained by the District to conduct the cost-of-service annual study to update its water and wastewater rates. In 2012, the District engaged Raftelis to conduct a recycled water financial plan study to evaluate the impacts of the recycled water expansion on the Water and Wastewater Enterprises. In late 2014 and early 2015, California experienced one of the most severe droughts in state history.

The District purchases 100 percent of its potable water supply from the Metropolitan Water District of Orange County (MDWOC), a wholesale customer of the Metropolitan Water District of Southern California (MWD). To address water supply issues, MWD developed the Water Supply Allocation Plan (WSAP) which provides reduced allocations to wholesale customers within MWD’s service area. In turn, on January 20, 2015, MWDOC adopted a methodology to determine the allocation to its member agencies. Member agencies, such as the District, can purchase water above the allocation, but such purchases are subject to severe penalties. The District engaged Raftelis to conduct a drought rate study to determine the indoor and outdoor drought factor adjustments necessary to encourage conservation among its residential and irrigation customers and to develop penalty rates for commercial customers in order to achieve the required reductions in consumption under increasing levels of drought. As part of the study, Raftelis conducted financial impact analysis on revenues, expenditures, and net revenues for each drought stage. The study analyzed the impacts if: 1) customers continued to consume at normal (non-drought) levels, or 2) customers reduced consumption by the amount required. The methodology and results of the Study were documented in the drought study report and submitted to the District to support the adoption of the District’s “Water Conservation & Water Supply Shortage Ordinance” in 2015.

In 2017, the District retained Raftelis to conduct Rate Study Introduction Workshop for its employees. The District also requested Raftelis’ services for its annual rate update study for water and recycled water services, and cost-of- service analysis for its sewer services. Raftelis presented the results of the study to District staff using the Rate Model to run rate scenarios and customer impact analysis. The results of the study were documented in the Final Report submitted to the District in April 2017 and the rates were adopted July 1, 2017. Raftelis updated the rates most recently in 2023.

Page 224 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 26

City of Chino CA
Reference: Rob Burns, Director of Finance
13220 Central Avenue, Chino, CA 91710 / P: 909.334.3341 / E: [email protected] Date: 2022 – 2024 / Team member involved: Sudhir Pardiwala

Raftelis conducted a water and wastewater study for the City of Chino (City) that involved a comprehensive review of the City's financial plan and rate structure. The City has a total of 19,200 water accounts and 25,100 wastewater accounts. Water is supplied through three main sources: local groundwater and purchased treated water from the Water Facilities Authority (WFA) and the Chino Basin Desalter Authority (CDA). The City also purchases recycled water from the Inland Empire Utilities Agency (IEUA) for sale and for recharge purposes. Wastewater treatment is provided by IEUA; thus the City's wastewater rates are for collection services. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, a review of City’s user classification, a cost-of-service analysis, and rate design for City users. The resulting rates were fair and equitable and met the fiscal needs of the City’s utilities in the context of the City’s overall policy objectives and were designed for simplicity of administration, cost effective implementation and ease of communication to customers. Raftelis is currently assisting the City with a water budget rate study.

City of Redlands CA
Reference: Ross Wittman, Senior Project Manager
35 Cajon Street, Redland, CA 92373 / P: 909.346.7487 / E: [email protected] Date: 2022 – 2023 / Team member involved: Sudhir Pardiwala

The City of Redlands (City) charges separate fees for water source acquisition and facilities. The water source acquisition fees are based on the costs of purchasing water rights. Raftelis assisted the City with the development of the water acquisition fees and facilities fees. The capacity fee calculation involved a review of the existing assets and future CIP that would benefit both existing and future customers. The calculated fee was based on a hybrid methodology including existing and future facilities. Water source acquisition fees to provide water supply were computed separately. Fees for the non-potable system, including recycled water, were calculated to recover costs and provide incentives to users. Raftelis completed a water and wastewater rate study for the City to review their rate structure in light of Proposition 218 requirements. The goal was to develop rates that adhere to cost-of-service and pay for necessary capital improvements. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, review of the City’s user classification, a cost-of-service analysis, and rate design for City users. We assisted the City with a review of their billing system to compile data needed for this study. The study was conducted with input from a 12-member Utility Advisory Committee. Over a dozen workshops with the Committee were conducted to explain concepts, gather feedback from Committee members, and to discuss the overall findings of the study. Raftelis surveyed neighboring utilities to benchmark rates.

Raftelis has a history of working for Redlands. We have been working with the City to update rates every two years since 2000. We did their most recent update in 2023.

Page 225 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 27

San Bernardino Municipal Water Department CA
Reference: Cindy Mouser, Director of Finance
1350 Southeast Street, San Bernardino, CA 92408 / P: 909.453.6010 / E: [email protected] Date: 2021 – 2021 / Team member involved: John Wright

The San Bernardino Municipal Water Department has a water service area encompasses approximately 45-square miles of the City’s 62 square miles and serves water to roughly 200,000 people throughout both the City of San Bernardino and the unincorporated areas of San Bernardino County. John Wright was the project manager for a comprehensive water and wastewater rate study for the City of San Bernardino (Department). The study included the development of 10-year financial plans, cost-of-service studies using industry-standard principles, and the development of wholly revised water and wastewater rate structures that were implemented by the Department's Board of Water Commissioners. In addition, Raftelis also developed drought surcharges for the Department. The outcome of the study was the development of Proposition 218-compliant water and wastewater rates for the period FY 2022 - FY 2026. The Department provides wholesale wastewater service to the City of Loma Linda and the East Valley Water District. In 2022, the East Valley Water District began using its own Water Reclamation Facility and will no longer be a wholesale wastewater customer of the Department. As part of the rate study, Raftelis has assisted the Department's plan for this significant loss of revenue.

City of Long Beach Utilities – Rate Study CA
Reference: Brandon Walker, Director of Finance
1800 East Wardlow Road, Long Beach, CA 90807 / P: 562.570.2367 / E: [email protected] Date: 2021 – 2022 / Team member involved: John Wright

The Long Beach Water Department (Department) provides water, sewer, and recycled water service to a population over 460,000 in the City of Long Beach. John Wright served as the project manager on a water and sewer cost-of- service study for the Department. The key objective of the study was a comprehensive review of the cost allocations used to support the Department’s currently effective utility rates and the creation of a new financial planning and cost allocation model. John also served as the project manager for a study investigating the potential implementation of water capacity fees. The study includes the valuation of the City's water infrastructure, the identification of capacity fee calculation methodologies, and the development of proposed capacity fee assessment schedules.

City of Long Beach Utilities – Capacity Fee Study CA
Reference: Dennis A. Santos, P.E., Manager of Engineering – Development Services 1800 East Wardlow Road, Long Beach, CA 90807 / P: 562.570.2381 / E: [email protected] Date: 2020 – 2022 / Team member involved: John Wright

In 2022, Raftelis completed a water connection fee study for the Long Beach Water (LBW) potable water system.

The study was completed by our Project Manager, John Wright. LBW does not currently charge potable water capacity fees and has not done so in the past. The City of Long Beach is almost fully developed and LBW has available capacity in its existing potable water infrastructure to serve future demand growth. Thus, new customers will largely be served by existing infrastructure, which was originally funded using external debt financing.

Recognizing these factors and taking into consideration the investment made by existing customers in the potable water system, Raftelis calculated potable water connection fees for LBW using the equity buy-in method. As part of the calculation process, fees for different functional components of the water system such as wells, pumping,

Page 226 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 28

transmission, and treatment were calculated. The study included the development of a proposed connection fee assessment schedule based on meter sizes.

City of San Diego CA
Reference: Adam Jones, Deputy Director of Finance
525 B Street, San Diego, CA 92101 / P: 858.614.4030 / E: [email protected] Date: 2019 – 2021 / Team member involved: John Wright

The City of San Diego (City) provides retail water, wastewater, and recycled water service to approximately 1.4 million people in metropolitan San Diego County. During the period 2019 – 2021 Raftelis completed a comprehensive wastewater cost-of-service study that resulting in the adoption of Proposition 218 compliant wastewater and recycled water rates that were approved by the San Diego City Council for the period FY 2022 – FY 2026.

The City's wastewater utility features two sub-systems. The Municipal sub-system is a sewage collection system for retail customers served within the City's jurisdictional boundaries. It consists of the piping and pumping infrastructure required for the collection and conveyance of the wastewater that is ultimately discharged into the Metropolitan sub-system. The Metropolitan sub-system is a regional sewage treatment and disposal system that operates under the auspices of the Metro Wastewater Joint Powers Authority (San Diego Metro). San Diego Metro serves the City and several other participating agencies in the County of San Diego through three City-owned wastewater treatment plants.

The distinct services completed by Raftelis as part of the wastewater cost-of-service study included:
• The addition of Pure Water Program capital improvement expenditures and operating costs in the wastewater financial planning model
• An analysis of the methodology used to allocate operating and capital costs between the City and the participating agencies in San Diego Metro
• The development of a comprehensive mass balance analysis that reconciled the wastewater flow and strength loadings contributed by the City’s retail customers to the influent and strength loadings recorded at the City’s Point Loma, North City, and South Bay wastewater treatment facilities • The identification of wastewater costs appropriately allocable to recycled water service such as tertiarily treatment costs
• The development of proposed Proposition 218 compliant wastewater and recycled water rates based on the proportionate contribution of volumes and strength loadings for the following customer classes: residential, multi-family residential, commercial, industrial, the United States Navy, trucked waste, and stormwater transportation

Las Virgenes Municipal Water District – Capacity Fee Study CA Reference: Donald Patterson, Director of Finance & Administration 4232 Las Virgenes Road, CA 91302 / P: 818.251.2133 / E: [email protected] Date: 2023 – 2023 / Team member involved: John Wright

Raftelis is currently in the process of finalizing a water, wastewater, and recycled connection fee update for the Las Virgenes Municipal Water District (District). The project is being led by our Project Manager, John Wright. The District services approximately 20,000 water customer connections primarily with imported water provided by the Metropolitan Water District of Southern California. The District, in conjunction with the Triunfo Water and

Page 227 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 29

Sanitation District, is a member agency of the Las Virgenes-Triunfo Joint Powers Authority (JPA) which provides wastewater and recycled water service. As part of the study, Raftelis used the hybrid method to calculate updated water and recycled water connection fees and the equity buy-in method to calculate updated wastewater connection fees. Our work in this regard including valuing the District’s share of Las Virgenes-Triunfo JPA assets.

Page 228 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 30

Client
Affordability Analysis &
Program Development
Debt Issuance Support
Dispute Resolution
Financial & Capital
Improvements Planning
Rate Case Support
Rate Design
Risk Analysis
Cost-of-Service
Development/Impact Fees
Stormwater Utility Development
Organizational Optimization

Water/Wastewater
Utility Valuation
Alameda County Water District  n  n  n n n n    Anaheim, City of    n

 n n n

   
Arroyo Grande, City of    n  n n n    
Atwater, City of    n n n  n    
Bakersfield, City of  n  n  n  n    
Benicia, City of         n   
Beverly Hills, City of  n  n  n n n n  n 
Borrego Water District   n n  n      
Brea, City of    n  n  n    
Brentwood (CA), City of    n  n n n    
CAL FIRE/San Luis Obispo        n    
Calleguas Municipal Water District  n  n  n n n     Camarillo, City of  n  n  n  n n   
Carlsbad Municipal Water District  n  n  n n n     Casitas Municipal Water District    n  n  n     Castaic Lake Water Agency   n n  n n n n    Central Basin Municipal Water District  n  n   n n     Central Contra Costa Sanitary District    n  n  n     Channel Islands Beach Community Services
District    n  n  n    
Chino Hills, City of    n  n  n    
Chino, City of    n  n  n    
Chowchilla, City of    n  n n n    
Corona, City of      n   n   
County of San Diego    n    n  n  
Crescenta Valley Water District    n  n  n     Cucamonga Valley Water District    n  n       Del Mar Union School District  n          
Delta Diablo Sanitation District           n  East Bay Municipal Utility District    n    n n    East Orange County Water District    n  n  n n    East Valley Water District    n  n n n    
Eastern Municipal Water District    n         El Toro Water District    n  n  n    
Elk Grove Water District n   n  n n n n   
Elsinore Valley Municipal Water District    n  n   n    Escondido, City of  n  n  n n n n   
Galt, City of  n  n  n  n n   
Glendora, City of      n      
Goleta Water District    n  n n n    
Goleta West Sanitary District   n n  n n n n    Helix Water District    n  n  n    
Henderson, City of    n  n  n n   
Hollister, City of    n  n  n n   
Holtville, City of    n    n    
Huntington Beach, City of    n  n n n    

CALIFORNIA

EXPERIENCE
This table lists the California
utilities that Raftelis has assisted
over the past five years on
financial, rate, and/or management
consulting projects.

Page 229 of 252 ends

-------------------------------------------------------------------------- ------------------------
-------------------------------------------
------------
-------------------------------------------------------------- ------------
------------------------
-------------------------------
------------------------
Council Agenda Packet - July 1, 2024
RAFTELIS 31

Water/Wastewater
Utility Valuation
Imperial County    n  n  n    
Inland Empire Utilities Agency    n         Irvine Unified School District  n           Jurupa Community Services District    n  n n n     Kern County Water Agency     n       
La Canada Irrigation District    n  n  n     La Habra Heights County Water District    n  n n n n    Laguna Beach, City of    n        
Lake Valley Fire Protection District    n   n n     Las Virgenes Municipal Water District    n  n  n     Leucadia Wastewater District    n  n      
Livermore, City of    n  n  n n   
Long Beach City of n n  n  n  n    
Los Alamos Community Services District  n  n  n  n n    Los Angeles Department of Water and Power      n  n     Los Angeles, City of Bureau of Sanitation     n        Madera, City of  n  n 
       
Mammoth Community Water District    n  n  n     Marin Municipal Water District     n        Merced, City of    n  n  n n   
Mesa Water District    n    n    
Metropolitan Water District of Southern
California   n         
Modesto Irrigation District      n  n    
Mojave Water Agency    n  n n     
Monterey County Water Resources Agency    n  n  n     Monterey, City of  n  n  n n     
Moulton Niguel Water District         n   
Municipal Water District of Orange County     n   n     Napa Sanitation District    n  n  n    
Ojai Valley Sanitary District    n  n  n     Olivenhain Municipal Water District    n  n n      Ontario Municipal Utilities Company        n     Ontario, City of    n  n n n    
Orange, City of    n  n  n    
Palo Alto, City of    n  n n n    
Phelan Pinon Hills Community Services District n   n  n  n n    Placer County Water Agency     n   n    
Pleasant Hill Recreation & Park District    n    n     Pomona, City of    n  n  n n   
Rainbow Municipal Water District    n  n n n     Ramona Municipal Water District    n  n  n     Rancho California Water District      n n n n    Redlands, City of    n  n n n n   
Rincon del Diablo Municipal Water District    n  n  n     Riverside Public Utilities    n  n n n n   

Page 230 of 252 ends

---------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------
-------------------------------
------------------------
------------
-------------------------------------------------------------- Council Agenda Packet - July 1, 2024
RAFTELIS 32

Water/Wastewater
Utility Valuation
Roseville, City of  n  n     n   
Sacramento Regional County Sanitation
District      n      
Sacramento, City of    n  n  n    
Salton Community Services District    n    n     San Bernardino Valley Municipal Water District      n       San Bernardino, County of    n  n  n n   
San Clemente, City of    n  n n n    
San Diego, City of Public Utilities Department  n n n  n n n n    San Dieguito Water District    n  n  n    
San Elijo Joint Powers Authority    n n n n n n    San Gabriel County Water District    n  n  n     San Gabriel, City of    n  n  n    
San Jose, City of        n    
San Juan Capistrano, City of    n  n n n n    Santa Ana, City of        n    
Santa Barbara, City of    n  n n n n   
Santa Clara Valley Water District   n n n        Santa Clarita Water District  n  n  n n n n    Santa Cruz, City of    n  n n n    
Santa Fe Irrigation District    n  n n n n    Santa Fe Springs, City of    n  n  n    
Santa Margarita Water District    n  n n n     Santa Rosa, City Attorney’s Office         n    Scotts Valley Water District  n  n  n n n n    Shafter, City of    n  n  n    
Shasta Lake, City of    n  n n n    
Sierra Madre, City of n   n  n  n    
Signal Hill, City of    n  n  n    
Simi Valley, City of    n  n n n n   
Sonoma, City of    n  n  n    
South Mesa Water Company    n  n n n    
South Pasadena, City of    n  n  n    
South San Francisco, City of    n    n    
Sunnyslope County Water District    n  n n n n    Sweetwater Authority    n  n  n    
Temescal Valley Water District    n  n  n n    Thousand Oaks, City of    n  n n n n   
Torrance, City of    n  n  n    
Trabuco Canyon Water District    n  n  n     Triunfo Sanitation District    n  n  n    
Tustin, City of    n  n  n    
Union Sanitary District    n  n n n n   
Ventura Regional Sanitation District    n  n  n     Ventura, City of n n n n n n n n n   
Vista, City of    n  n   n   

Page 231 of 252 ends

------------------------------------------------
------------------------------------
------------------------------------
------------------------------------
------------------------------------
------------------------------------
------------------------------------
Council Agenda Packet - July 1, 2024
RAFTELIS 33

Water/Wastewater
Utility Valuation
Walnut Valley Water District    n  n  n     Watsonville, City of n   n  n n n    
West Basin Municipal Water District    n  n n n     Western Municipal Water District    n  n  n n    Yorba Linda Water District    n  n  n    
Zone 7 Water Agency    n  n  n    

Page 232 of 252 ends

------------------------------------
Council Agenda Packet - July 1, 2024
RAFTELIS 34

REQUIRED STATEMENTS
Required Statements
Raftelis agrees that all service charges will be a “Not-To-Exceed” fee, as submitted with and made part of said quote.

Raftelis agrees that the hourly rate schedule is part of the quote for use in invoicing for progress payments and for extra work incurred that is not part of this RFP. We have provided an hourly rate schedule with the cost proposal.

Raftelis agrees that all federal laws and regulations shall be adhered to notwithstanding any state or local laws and regulations. In case of conflict between federal, state, or local laws or regulations, the strictest shall be adhered to.

Raftelis shall allow all authorized federal, state, county, and City officials access to place of work, books, documents, papers, fiscal, payroll materials, and other relevant contract records pertinent to this project. All relevant records shall be retained for at least three (3) years.

Raftelis will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin.

Raftelis shall comply with the California Labor Code., pursuant to said regulations entitled: Federal Labor Standards provisions; Federal Prevailing Wage Decision; and State of California Prevailing Wage Rates, respectively.

Raftelis shall comply with the Copeland Anti-kickback Act (18 USC 874 C) and the implementation regulation (29 CFR 3) issued pursuant thereto, and any amendments thereof.

Page 233 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 35

FIRM OVERVIEW
Firm Overview

HELPING PUBLIC SECTOR UTILITIES THRIVE
Public sector utilities partner with Raftelis to ensure long-term financial viability and fully equitable cost recovery.

We’ve helped more than 700 organizations in the last year alone. Our California financial consulting practice has assisted dozens of California utilities over the past three decades.

Raftelis is the right fit for this project. We provide several key factors that will benefit the City and help make this project successful.

DEPTH OF RESOURCES: Specialized and highly experienced utility rate consultants that all stakeholders can have confidence in. With more than 170 consultants, Raftelis has the largest water-industry rate consulting practice in the nation. Our depth of resources will allow us to provide the City with the technical expertise necessary to meet your objectives. In addition to having many of the industry’s leading rate consultants, we also have experts in key related areas, like stakeholder engagement and data analytics, to provide additional insights as needed.

EXCEPTIONAL TECHNICAL EXPERTISE: Technical expertise to ensure financial planning, cost-of-service, and rate design methodologies reflect industry standard best practices. Our senior staff has helped shape industry standards by chairing various committees within the AWWA. Members of the Raftelis staff have co-authored many industry-standard books regarding utility finance and rate setting. Being so actively involved in the industry will allow us to keep the City informed of emerging trends and issues and to be confident that our recommendations are insightful and founded on sound industry principles. Our Municipal Advisor registration guarantees that the City can be confident that we are fully qualified and capable of providing financial advice related to all aspects of the financial planning in compliance with applicable federal regulations.

EXPERTS ON CALIFORNIA REGULATORY REQUIREMENTS: Raftelis understands Proposition 218 challenges faced by California public sector water utilities. The City can be assured that Raftelis will complete each phase of the cost-of-service analysis (financial planning, cost allocations, and rate structure design) fully aware of the importance of Proposition 218 compliance. We are not a law firm, and we do not offer legal advice.

Nonetheless, our staff members are well versed in California regulatory requirements. We routinely work with client legal counsel during rate studies and members of our firm have served as expert litigation witnesses.

HISTORY OF SIMILAR SUCCESSES: A long history of project experience to ensure successful execution.

Raftelis staff has assisted 1,700+ utilities throughout the U.S. with financial and rate consulting services with wide- ranging needs and objectives. Our extensive experience will allow us to provide innovative and insightful recommendations to the City and will provide validation for our proposed methodology ensuring that industry best practices are incorporated.

EXPERTS ON CALIFORNIA REGULATORY REQUIREMENTS: This expertise will allow the City to be confident that our recommendations take into account all of these regulatory requirements. The regulatory environment in California has become more stringent due to Proposition 218. Besides developing well-thought-out financial plans, Raftelis staff members are very knowledgeable about these regulations and have made presentations on this subject at various industry conferences. In addition, we are frequently called on to be expert witnesses regarding these regulatory matters.

Page 234 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 36

PROJECT TEAM
Project Team
Our team includes senior-level professionals to provide experienced project leadership with support from talented consultant staff. This close-knit group has frequently collaborated on similar successful projects, providing the City with confidence in our capabilities.

Here, we have included an organizational chart showing the structure of our project team. We have included resumes for each team member and a description of their role on the project.

TECHNICAL REVIEWER
Todd Cristiano
City of La Verne

PROJECT DIRECTOR
Sudhir Pardiwala, PE

SUBJECT MATTER EXPERT
Gina DePinto, APR
(Community Outreach)

STAFF CONSULTANTS
Journ Galvan
Summer Simpson

PROJECT MANAGER
John Wright, CPA

ASSISTANT PROJECT MANAGER
Cameron Okie

Page 235 of 252 ends

-
Council Agenda Packet - July 1, 2024
RAFTELIS 37

Sudhir Pardiwala PE

PROJECT DIRECTOR
Executive Vice President

ROLE
Sudhir will be responsible for overall project accountability and will be available to provide quality assurance and control, industry perspective, and insights into the project.

PROFILE
Sudhir has 45 years of experience in financial studies and engineering. He has extensive expertise in water and wastewater utility financial and revenue planning, valuation, and assessment engineering. He has conducted numerous water, wastewater, stormwater, and reclaimed water rate studies involving conservation, drought management, risk analysis, as well as system development fee studies, and has developed computerized models for these financial evaluations. Sudhir has assisted public agencies in reviewing and obtaining alternate sources of funding for capital improvements, including low-interest state and federal loans and grants. He has assisted several utilities with State Revolving Fund and Water Reclamation Bond loans. Sudhir authored the chapter on reclaimed water rates in the Manual of Practice No. 27, Financing and Charges for Wastewater Systems, published by the Water Environment Federation (WEF). He also authored a chapter entitled, “Recycled Water Rates,” for the Fourth Edition of the industry guidebook, Water and Wastewater Finance and Pricing: The Changing Landscape. Sudhir was vice-chairman of the California-Nevada AWWA Business Management Division and Chairman of the Financial Management Committee.

KEY PROJECT EXPERIENCE
City of Redlands (CA): Impact Fee Study, Non-Potable Water Fee Study, Rocky MWC, Valuation and Lease Study, Bi-Annual Rate Updates, Reclaimed Water Funding, Water and Wastewater Rate Study
Sudhir has managed several financial projects for the City of Redlands (City) including water, wastewater and reclaimed water projects. The studies were conducted with extensive stakeholder input and multiple meetings with a Utilities Advisory Commission composed of local residents, businesses, and other interested parties. The first rate studies involved significant rate adjustments as well as rate structure adjustments to ensure financial stability, meet debt coverage and regulatory requirements. The analysis included calculation of outside-City charges and impact fees. The City received user- friendly working rate models for future updates. Sudhir assisted the City with State Revolving Fund loans for reclaimed water and potable water. He helped them find grants for the reclaimed water project and water treatment plant upgrade. He has been assisting the City biennially with their water, wastewater and recycled water rates.

Specialties
• Cost-of-service rate studies
• Conservation & drought
management studies
• Economic analyses
• Water & wastewater utility cost
accounting
• Valuation
• Financial & revenue planning
• Assessment engineering
• Reviewing/obtaining capital
improvement funding
• Computer modeling
Professional History
• Raftelis: Executive Vice President
(2013-present); Vice President
(2004-2013)
• Black & Veatch: Principal Consultant
• (1997-2004)
• MWH: Principal Engineer (1985-
1997)
• CF Braun: Senior Engineer (1979-
1985)
• PFR Engineering Systems:

Research Engineer (1977-1979)
Education
• Master of Business Administration -
University of California, Los Angeles
(1982)
• Master of Science in Chemical
Engineering - Arizona State
University (1976)
• Bachelor of Science in Chemical
Engineering - Indian Institute of
Technology, Bombay (1974)
Certifications
• Series 50 Municipal Advisor
Representative
Professional Registrations
• Registered Professional Engineer,
California: Civil (1988); Chemical
(1981)
Professional Memberships
• AWWA
• WEF
• California Municipal Finance
Officers Association

Page 236 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 38

PROJECT LIST
• City of Anaheim (CA) - Water rate study
• City of Atwater (CA) - Water and wastewater rate study • City of Banning (CA) - Recycled water revenue program • Beaumont Cherry Valley Water District (CA) - Water rate and connection fee study • Carpinteria Sanitary District - Wastewater rate study • Casitas Municipal Water District - Water rate study
• Castroville Water District (CA) - Water and wastewater rate study • City of Beverly Hills (CA) - Asset replacement study, connection fee study, conservation rate study, valuation and development of replacement program and asset inventory, and water rate study and update • City of Brea (CA) - Water rate study, connection fees and related fees and charges study • City of Brentwood (CA) - Water and wastewater rate study • City of Buenaventura (CA) - Water and wastewater rate study • City of Burbank (CA) - Bond feasibility study, reclaimed water study, and water and wastewater rate study • City of Carlsbad (CA) - Asset replacement study and water, wastewater and reclaimed water revenue program • City of Chino (CA) - Valuation study and water rate study • City of Chowchilla (CA) - Water and wastewater rates study • City of Cloverdale (CA) - Water and wastewater connection fees and rate study • City of Corona (CA) - Water and wastewater rate study • El Toro Water District (CA) - Water budget and wastewater rate studies and connection fees • City of Encinitas (CA) - Water and wastewater rate study • City of Escondido (CA) - Valuation study, water and wastewater rate study • City of Glendora (CA) - Water and wastewater financial planning and rate study • Goleta Water District (CA) - Water and wastewater rates and connection fees studies, asset management, and financing plan
• City of Madera (CA) - Water and wastewater rate study • Mammoth Community Water District (CA) - Water and wastewater rate study • Ojai Valley Sanitary District - Wastewater rate study • Olivenhain Municipal Water District (CA) - Water and wastewater financial planning studies and recycled water rate study
• City of Ontario (CA) - Water, wastewater and solid waste rate study • Palmdale Water District (CA) - Water budget rate study • City of Palo Alto (CA) - Water rate study
• City of Poway (CA) - Wastewater rate structure analysis • Ramona Municipal Water District (CA) - Water rate study • Rainbow Municipal Water District (CA) - Water, wastewater rate and capacity fee studies • County of San Bernardino (CA) - Water and wastewater rate study and connection fees • City of San Diego (CA) - Recycled water rate study, valuation study, and water and wastewater financial plan, rate and connection fees study, litigation support
• City of Santa Barbara (CA) - Water and wastewater rate study • City of Santa Fe springs - Water rate study
• City of Santa Monica (CA) - Wastewater rate study
• City of South Pasadena (CA) - Water and wastewater rate study • Sweetwater Authority (CA) - Water rate study
• Valley County Water District (CA) - Water rate study
• Ventura County Water and Sanitation Department (CA) - Water Cost-of-Service and Rate Study

Page 237 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 39

John Wright CPA

PROJECT MANAGER
Senior Manager

ROLE
John will manage the day-to-day aspects of the project ensuring it is within budget, on schedule, and effectively meets the City’s objectives. He will also lead the consulting staff in conducting analyses and preparing deliverables for the project. John will serve as the City’s main point of contact for the project.

PROFILE
John has over 25 years of utility industry financial management and economic analysis experience – 14 years as a utility consultant with Raftelis and 7 years as a utility staff member with Denver Water (CO) and the City of Portland Bureau of Environmental Services (OR). John’s expertise includes water, recycled water, and wastewater cost-of-service, financial planning, and capacity fee studies.

John has provided consulting services to numerous complex utility clients, including the San Franciso Public Utilities Commission, the Metropolitan Water District of Southern California, the City of San Diego, the San Bernardino Municipal Water Department, Austin Water, the Portland Water Bureau, Milwaukee Water Works, the City of Calgary, and the Puerto Rico Aqueduct and Sewer Authority.

John is a contributing author to several AWWA and Water Environment Federation (WEF) publications, including AWWA Manual M1, Principles of Water Rates, Fees, and Charges, and WEF Manual 27, Financing and Charges for Wastewater Systems.

KEY PROJECT EXPERIENCE
City of Long Beach Water Department (CA): Cost-of-Service Update for Water, Reclaimed Water, and Sewer Rates
The Long Beach Water Department (Department) provides water, sewer, and recycled water service to a population over 460,000 in the City of Long Beach. John served as the project manager on a water and sewer cost-of- service study for the Department. The key objective of the study was a comprehensive review of the cost allocations used to support the Department’s currently effective utility rates and the creation of a new financial planning and cost allocation model. John also served as the project manager for a study investigating the potential implementation of water capacity fees. The study includes the valuation of the City's water infrastructure, the identification of capacity fee calculation methodologies, and the development of proposed capacity fee assessment schedules.

Specialties
• Cost-of-service studies
• Capacity fee studies
• Financial & economic analysis
• Public speaking and presentations
• Expert witness testimony
• Litigation support
Professional History
• Raftelis: Senior Manager (2020-
present); Manager (2017-2019);
Senior Consultant (2010-2016)
• Denver Water: Manager of Rate
Administration (2006-2009)
• Portland Bureau of Environmental
Services: Senior Economist (2004-
2006)
• Public Utility Commission of Oregon:

Senior Utility Analyst (2002-2004)
• Positions in the Competitive
Telecommunications Industry (1997-
2002)
• Colorado Public Utilities
Commission: Senior Financial
Analyst (1991-1997)
Education
• Master of Science in Finance -
University of Colorado, Denver
• Bachelor of Science in Accounting -
Metropolitan State University of
Denver
Certifications
• Certified Public Accountant, State of
Colorado #11959
• Series 50 Municipal Advisor
Representative
Professional Memberships
• AWWA - Rates & Charges
Committee
o Contributing author to the 6th and
7th editions of AWWA Manual
M1. Member of the editorial
committee responsible for the
upcoming 8th edition of Manual
M1
• WEF Utility Management Committee
o Contributing author to the 4th
edition of WEF Manual No. 27.

Page 238 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 40

San Bernardino Municipal Water Department (CA): Comprehensive Cost-of-Services and Rate Structure Update
John was the project manager for a comprehensive water and wastewater rate study for the City of San Bernardino (Department). The study included the development of 10-year financial plans, cost-of-service studies using industry- standard principles, and the development of wholly revised water and wastewater rate structures that were implemented by the Department's Board of Water Commissioners. In addition, Raftelis also developed drought surcharges for the Department. The outcome of the study was the development of Proposition 218-compliant water and wastewater rates for the period FY 2022 - FY 2026. The Department provides wholesale wastewater service to the City of Loma Linda and the East Valley Water District. In 2022, the East Valley Water District begin using its own Water Reclamation Facility and will no longer be a wholesale wastewater customer of the Department. As part of the rate study, Raftelis has assisted the Department's plan for this significant loss of revenue.

City of San Diego (CA): Consulting Services for the Public Utilities Department - Water and Wastewater Cost-of-Service Studies
The City of San Diego (City) provides retail water, wastewater, and recycled water service to approximately 1.4 million people in metropolitan San Diego. John was the lead consultant on the City’s recent wastewater and recycled water rate studies. His responsibilities included working with City staff to prepare a revenue requirement projection for the wastewater enterprise fund, 2) developing wastewater and recycled water cost allocations as part of the wastewater cost-of-service study, and 3) calculating proposed wastewater and recycled water rates for the period FY 2022 – FY 2026.

The City's wastewater utility system consists of Municipal and Metropolitan sub-systems. The Municipal sub- system is a wastewater collection and conveyance system for retail customers served within the City's jurisdictional boundaries. The Metropolitan sub-system is a regional wastewater treatment and disposal system that provides service to 16 member agencies in the County of San Diego. John’s work on the project included analyzing the methodology used to allocate Municipal and Metropolitan subsystem operating and capital costs to the City's retail wastewater and recycled water customers. He also developed a comprehensive mass balance analysis that reconciled the wastewater flow and strength loadings contributed by the City to the flow and strength loadings recorded at each of the three City-owned treatment plants.

Eastern Municipal Water District (CA): Long-Term Financial Plan Update The Eastern Municipal Water District (District) provides water, wastewater, and recycled water service to a population of approximately 850,000 in Riverside County. John served as the project manager for an update of the long-term financial planning models for each of the District’s utilities. The models featured scenario planning capabilities and developed revenue requirement projections over a fifteen-year planning horizon.

Irvine Ranch Water District (CA): Cost-of-Service and Rate Design Study The Irvine Ranch Water District (District) serves a 181 square mile area that includes all of the City of Irvine and portions of the cities of Tustin, Newport Beach, Costa Mesa, Orange, and Lake Forest, as well as some unincorporated regions of Orange County. The total estimated daytime population served is approximately 600,000 people through approximately 118,000 water and 113,000 sewer connections. John was the project manager responsible for a water, sewer, and recycled water cost-of-service and rate design study for the District. The overarching objective of the Study was to conduct a comprehensive review of the methods used by the District to develop the rates it charges for water, sewer, and recycled water service in order to confirm compliance with Proposition 218 and other applicable legal requirements.

Page 239 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 41

Cameron Okie

ASSITANT PROJECT MANAGER
Manager

ROLE
Cameron will assist the Project Manager with managing the day-to-day aspects of the project and leading the consulting staff in conducting analyses and preparing deliverables for the project.

PROFILE
Cameron has more than 8 years of consulting experience with public and private sector clients. Prior to joining Raftelis, Cameron supported corporate clients with data-driven water and energy efficiency services. In addition, Cameron also provided private sector clients environmental compliance for capital projects, business process mapping/optimization, and stormwater permitting compliance. Prior to working with private sector clients, Cameron supported federal government clients with water and energy efficiency analysis, tracking, and policy development.

RELEVANT PROFESSIONAL EXPERIENCE
ERM Inc.: Managing Consultant (2020-2023); Project Manager (2018- 2020)
ERM is an environmental consulting firm which mainly supports corporate clients. Cameron worked to build custom Excel tools to analyze client utility/infrastructure data; identify energy, water, and emissions savings opportunities; and develop custom reports prioritizing analyses and savings opportunities. In addition, Cameron provided environmental compliance for construction projects and stormwater permitting compliance in multiple states.

Last, Cameron also launched business process improvement efforts for various clients.

Booz Allen Hamilton: Associate (2017-2018); Senior Consultant (2015-2017) Booz Allen is a management consulting firm which mainly supports federal government clients. Cameron worked on several projects for the Navy and the Office of the Secretary of Defense (OSD). For the Navy, Cameron managed two Navy CNIC energy efficiency programs that developed modeled facility-by-facility energy savings and a facility energy audit program. In addition, Cameron supported the Navy Resilient Energy Program Office (REPO) utility savings programs through policy writing and stakeholder coordination. Last, Cameron managed the Energy Conservation Investment Program (ECIP) which funded energy savings projects across all agencies of the Department of Defense for the OSD Installation Energy Office.

Specialties
• Data and financial analysis
• Business Process Improvements
• Energy and water efficiency
Professional History
• Raftelis: Manager (2023-present)
• ERM Inc.: Managing Consultant
(2020-2023); Project Manager
(2018-2020)
• Booz Allen Hamilton: Associate
(2017-2018); Senior Consultant
(2015-2017)
Education
• Master of Environmental
Management (MEM) in Water
Resources Management - Duke
University’s Nicholas School of the
Environment (2015)
• Bachelor of Arts in Environmental
Studies - Lewis and Clark College
(2006)

Page 240 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 42

Gina DePinto APR

COMMUNITY OUTREACH SUBJECT MATTER EXPERT
Manager

ROLE
Gina will provide input and guidance as a Subject Matter Expert for the community outreach components of this project.

PROFILE
Gina is an award-winning and accredited public relations professional with more than 35 years of experience and leadership in crisis communications, community outreach, advocacy, stakeholder engagement, marketing, and media relations in the public and private sectors. Gina’s leadership experience includes communications program management for $2 billion in public transportation and water infrastructure projects, including the Port of Long Beach Gerald Desmond Bridge Replacement Project and the Orange County Groundwater Replenishment System. The GWRS has been covered by international media including National Geographic, Wall Street Journal, New York Times, BBC, CNN, and NPR to name a few. Prior to joining Raftelis, Gina served the residents of Santa Barbara County as the first executive Communications Manager in the county government’s 171-year history. She advised the County Executive Team on strategic communications programs, crisis communication, media relations, issues management, internal communications, branding and culture change. During her tenure, the County Emergency Operations Center was activated 19 times and included two federally declared disasters, a global pandemic, two mass casualty incidents, and a $2M embezzlement in the Public Works Department. Born and raised in Phoenix, Arizona, DePinto served as a public information officer for the City of Phoenix, public relations director for Farnam Companies, Inc. (animal health and pet products), and coordinated publicity for Olympic and World Champion figure skater Dorothy Hammill prior to relocating to California. Gina has a bachelor’s degree in organizational communication from Arizona State University and is accredited in public relations from the Public Relations Society of America. Gina is currently a member of the California Association of Public Information Officials (CAPIO), Public Relations Society of America (PRSA), and the Municipal Management Association of Southern California (MMASC).

KEY PROJECT EXPERIENCE
Carpinteria Groundwater Sustainability Agency (CA): Rate Study Communications and Engagement
Gina provided strategic guidance to the Carpinteria Groundwater Sustainability Agency (CGSA) Executive Director in support of establishing a groundwater users sustainability fee. The CGSA was formed in 2020 after the groundwater basin was designated a high priority by the state Department of Water Resources under the Sustainable Groundwater Management Act (SGMA). Without the ability to collect rates or fees, the CGSA was operating on loans from the Carpinteria Valley Water District for two years.

Specialties
• Strategic communications planning
• Crisis & risk communications
• Reputation management
• Stakeholder engagement
• Media relations & media training
• Development & oversight of earned
social and paid media
• Writing, copyediting, script writing
• Collateral development and art
direction
• Branding and marketing
• Public speaking
Professional History
• Raftelis: Manager, Strategic
Communications (2022-present)
• County of Santa Barbara:

Communications Manager (2016-
2022)
• Westbound Communications:

Account Director (2013-2016)
• Orange County Water District:

Communications Specialist (2006-
2013)
• Bylines Public Relations &
Marketing: Owner/Principle (1996-
2006)
• Farnam Companies: Public
Relations Director (2000-2003)
• City of Phoenix: Public Information
Officer (1998-2000)
• Martz Goldwater Public Relations:

Senior Account Executive (1996-
1997)
• Dorothy Hamill’s Ice Capades:

Marketing Manager & Publicist
(1993-1995)
Education
• Accredited in Public Relations –
PRSA (2013)
• Bachelor of Arts in Organizational
Communication - Arizona State
University (1987)
Professional Memberships
• Public Relations Society of America
• California Association of Public
Information Officials
• Municipal Management Association
of Southern California

Page 241 of 252 ends

~
Council Agenda Packet - July 1, 2024
RAFTELIS 43

Gina developed and executed an engagement plan to guide outreach activities for the fee study. The tactics included an engagement plan with a master message platform; bilingual website content, fact sheet, video, and social media content; direct mail; and a series of community meetings and Board presentations. As recommended in Raftelis’ Fee Study Report, the CGSA Board of Directors approved a groundwater fee assessed beginning with FY 2022-23.

Orange County (CA): Water Education and Outreach Program Development While leading strategic communications at the Orange County Water District (OCWD), Gina was engaged with planning and directing content, and engaging partners and sponsors for several signature events to engage generational audiences about regional and state water resources and supplies, water efficiency, and environmental sustainability. Key partners and sponsors included The Walt Disney Company, National Geographic, Wyland Foundation, UC Irvine, UCLA, NASA JPL, USGS, National Water Research Institute, California Department of Water Resources, and others to support events like the annual O.C. Water Summit, Children’s Water Education Festival, and the Groundwater Adventure Tour.

Orange County (CA): Infrastructure Outreach and Communications For Water Reuse Project Gina led communications and outreach for the world's largest advanced water purification system for potable reuse.

While Orange County’s Groundwater Replenishment System (GWRS) is one of the most celebrated civil engineering and water reuse projects in the world, its success is equally recognized for the robust strategic public engagement and outreach program. In the early 2000s, public opposition had prevented or shuttered similar water reuse projects in Los Angeles and San Diego, but Orange County’s system earned the public’s trust and overwhelming support. The strategic communications plan included a support letter campaign, citizens advisory group, multicultural outreach, media outreach, speaker’s bureau, and facility tour program with technology demonstrations and water tasting. To date, the GWRS has never been publicly opposed. Initially producing 70 million gallons of purified water per day in 2012, the GWRS final expansion will increase capacity from 100 MGD to 130 MGD, enough to secure water reliability for more than 1 million people.

Santa Barbara County (CA): Corporate Strategic Planning In 2017, the County of Santa Barbara embarked on a five-year initiative to transform how the County government does its work. The Renew 2022 initiative originated with an internal strategic organizational plan in 2015, followed by the Budget Rebalance effort in 2016, which was intended to address significant pension cost increases. Renew ‘22 sought to build the County’s capacity for innovation and continuous improvement through organizational transformation. Gina developed a comprehensive communications and engagement plan, master messaging platform, fact sheets, video presentations, employee and public presentations, employee feedback surveys, logo development and branding guide, and four sessions of a one-day custom leadership development seminar scripted by Gina that was offered to 300 middle managers.

Canton Township (MI): Communications Assessment
Gina conducted a comprehensive review and assessment of Canton Township’s approach to communications and outreach to assure it was reaching constituents efficiently and with timely information while successfully achieving the Township’s mission. The assessment included a comprehensive, systematic, and customized review of the communication program through an environmental scan, in-depth materials review, internal and external stakeholder interviews, a public survey, focus groups, and benchmark interviews. The final assessment underscored efforts that are working well and provided many easy-to-implement recommendations.

Page 242 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 44

Todd Cristiano

TECHNICAL REVIEWER
Vice President

ROLE
Todd will provide oversight for the project ensuring it meets both Raftelis and industry standards.

PROFILE
Todd has nearly 20 years of utility finance experience—14 years as a consultant to utilities and 6 years as the Manager of Rates at Denver Water.

He has completed studies across the U.S. for water, wastewater, stormwater, electric, and gas utilities. His experience covers technical areas and industries such as municipal fee development, utility cost-of-service and rate structure studies, economic feasibility analyses, impact fee studies, and budget processes. While at Denver Water, he oversaw four significant rate- and fee- related studies, all unanimously approved by the Board of Water Commissioners, and also served as interim budget manager at Denver Water.

As a member of the AWWA, he has helped to develop industry guidelines regarding financial and rate-making practices. In particular, as the Past Chair and current member of the AWWA Rates and Charges Committee, he co- authored the water reuse chapter in the latest edition of Manual M1, Principles of Water Rates, Fees and Charges. Todd is also co-instructor for the AWWA’s biennial Financial Management: Cost-of-Service Rate-Making Seminar.

KEY PROJECT EXPERIENCE
City of San Diego (CA): Water and Wastewater Cost-of-service and Rate Study
The City of San Diego provides service water and wastewater to approximately 300,000 customers. The City retained Raftelis to conduct a comprehensive water and wastewater cost of service and rate analysis. Also included in this study was development of wastewater industrial pretreatment fees and capacity fees for both utilities. Raftelis delivered a customized financial planning, cost of service, and rate model for the City’s use at the end of the project. Todd lead the efforts on this project.

Of particular concern to the City was ensuring that rates are equitable and follow Proposition 218 requirements. In addition, the previous droughts have caused variability in revenues. As a result, they requested an analysis of their recovery of fixed charges and variable charges. Any increases to fixed charges may negatively affect low volume and low-income users. Raftelis completed a scenario analysis on financial planning alternatives that will minimize rate impacts and optimize funding for their large capital improvement program. The rate design module will allow the City to evaluate different rate structures with varying fixed charge recovery as well as showing the impacts to customers. Raftelis presented these results to the City’s Independent Rate Advisory Committee (IROC) for feedback and recommendations. The study concluded with a presentation to City Council for vote on the proposed rates.

Rate approvals were effective in FY21.

Specialties
• Financial planning
• Cost-of-service & rate structure
studies
• Litigation support
• Economic feasibility analyses
• Impact fee studies - utility & non-
utility
• Reviews of policies, procedures, &
operating practices
• Budget processes
Professional History
• Raftelis: Vice President (2024-
present); Senior Manager (2019-
2023); Manager
• (2017-2018)
• Stantec (2016-2017)
• Denver Water: Manager of Rates
(2010-2016)
• Malcolm Pirnie-Arcadis-US
• (2005-2010)
• Black & Veatch (1998-2005)
Education
• Master of Business Administration
- University of Colorado (2003)
• Bachelor of Science in Chemical
Engineering - University of Tulsa
(1995)
Professional Memberships
• AWWA: Past Chair and current
member of Rates & Charges
Committee
• WEF

Page 243 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 45

Todd also updated their industrial pretreatment fees to comply with an internal audit. This evaluation considered all activities the industrial pretreatment department completes to manage permits, issue violations, sample customers, and monitor truck waste. The outcome was cost-based fees for each of these areas which complied with the internal audit and Proposition 218.

Finally, Todd updated the City’s water and wastewater capacity fees to ensure that fees recovered the cost to serve growth. The fees included in-service assets plus future growth-related projects. Fees are assessed on a per EDU basis. This process follows the Proposition 218 requirements.

PROJECT LIST
• City of Aspen (CO) – Water and electric rate study
• Town of Berthoud (CO) – Water and wastewater rate and fee study • City of Boulder (CO) – Water budget rate study and plant investment fee study • Breckenridge Sanitation District (CO) – Wastewater impact fee study • City of Craig (CO) – Water and wastewater financial plan • City of Davenport (IA) – Water and wastewater financial plan • Town of Dillon (CO) – Water and wastewater rate and fee study • El Paso Water Utility (TX) – Reclaimed water rate study • Town of Erie (CO) – Water and wastewater rate and fee study • City of Farmington (NM) – Water and wastewater rate study • City of Fort Collins (CO) – Water and wastewater rate and fee study • City of Glendale (AZ) – Water and Wastewater Rate Study • City of Grand Junction (CO) – Wastewater financial plan • City of Great Falls (MT) – Water and wastewater financial plan • City of Greeley (CO) – Water and wastewater cost-of-service update • Mammoth Community Water District (CA) – Water and wastewater rate study • Moapa Valley (NV) – Water financial plan
• City of Peoria (AZ) – Water and wastewater rate study • City of Pocatello (ID) – Water, wastewater and sanitation rate and fee study • City of Prescott (AZ) – Water and wastewater rate and fee study • Pueblo Wastewater (CO) - Wastewater rate and fee study • Pueblo West Metropolitan District (CO) – Water and wastewater rate and fee study • Puerto Rico Aqueduct and Sewer Authority (Puerto Rico) – Water and wastewater rate and fee study • Sacramento Sanitation District (CA) – Bond feasibility study • City of Salt Lake City (UT) – Water, wastewater, and stormwater rate and fee study • Snyderville Water Reclamation District (UT) – Wastewater financial plan study • City of Surprise (AZ) – General government impact fee study • Water Research Foundation (CO) – WaterReuse research project

Page 244 of 252 ends

Council Agenda Packet - July 1, 2024
RAFTELIS 46

STAFF CONSULTANT QUALIFICATIONS & EXPERIENCE

Journ Galvan
Staff Consultant | Consultant
Journ is a highly motivated and detail-oriented professional with a Master of Science degree in Geospatial Data Science and has a strong focus on water utilities consulting. As a member of a hiring committee for the Cooperative Institute for Great Lakes Research (CIGLR) in hydrodynamics and a graduate student instructor for an oceanography and scientific writing class, he has gained valuable experience in collaborative research and teaching. His master's project, funded by the U.S. Army Corps of Engineers (USACE), involved using advanced modeling techniques to predict harmful algal blooms in Lake Erie which serves as a crucial drinking water source for millions of people. Results from this project were presented at IAGLR’s 66th Annual Conference on Great Lakes Research held in Toronto, Canada. Additionally, his work experience includes assisting with water, sewer, and stormwater rate studies, demonstrating knowledge of financial planning and cost analysis in the water utilities industry. With his expertise in geospatial data analysis and passion for sustainable water management, Journ is well-equipped to contribute to Raftelis’ success.

Relevant Projects: Metropolitan Water District of Southern California (CA): Fixed Versus Variable Revenue and Cost Survey, California Rate Survey (CA): Passthrough Charges Impact Analysis

Summer Simpson CPA
Staff Consultant | Associate Consultant
Summer is an Associate Consultant in the Austin Branch. She is aiding and learning from other members of the team. Prior to her role at Raftelis, Summer was a Business Consultant through her master’s program at Wake Forest University where she gained experience working with clients and large sets of data. Summer holds a bachelor’s degree in Business Administration and a master’s degree in business analytics.

With this, she is looking forward to utilizing her analytical skills to provide data-driven insights within the industry.

Relevant Projects: Lake Hemet Municipal Water District (CA): Water and Wastewater Cost-of-Service and Financial Planning Study, Fort Collins-Loveland Water District (CO): Water and Wastewater Cost-of-Service and Financial Planning Study

Page 245 of 252 ends

Council Agenda Packet - July 1, 2024

JW SP TC GD CO JG SS Admin Total

1. Project Initiation,
Management, and
Kick-Off

0.5 4 1 1 1 1 1 1 1 11 $3,359

2. Analysis of
Consumption and
Demand
1 2 3 10 15 $3,495

3. Financial Plan
Development 1 2 3 12 17 $3,885

4. Cost-of-Service
Analysis 1 2 1 1 2 16 22 $5,150

5. Water and Sewer
Rate Design 1 4 1 1 4 12 20 $5,600

6. Drought Charge
Analysis 1 1 1 1 8 11 $2,595

7. Water and Sewer
Capacity Fee Studies 1 4 4 28 36 $7,960

8. Rate and Bill
Survey Comparative
Analysis
1 1 8 9 $1,855

9. Rate Workshops 1 6 1 1 3 2 2 15 $4,893

10. Community
Meetings 1 8 18 2 28 $8,438

11. Rate Study
Reports 1 8 1 1 4 20 2 36 $8,720

12. Proposition 218
Preparation and
Hearings
1 8 1 16 1 2 28 $8,553

EXHIBIT C

Page 246 of 252 ends

RAFTELIS 21
Cost Proposal
The following tables provide a breakdown of our proposed fees for this project. These tables include the estimated level of effort required for completing each task and the hourly billing rates for our project team members. Expenses include costs associated with travel and a $10 per hour technology charge covering computers, networks, telephones, postage, etc.

WATER COST PROPOSAL
Council Agenda Packet - July 1, 2024

JW SP TC GD CO JG SS Admin Total

1. Project Initiation,
Management, and
Kick-Off

0.5 4 1 1 1 1 1 1 1 11 $3,359

2. Analysis of
Consumption and
Demand
1 1 1 8 10 $2,185

3. Financial Plan
Development 1 1 1 2 $625

4. Cost-of-Service
Analysis 1 2 1 1 1 10 15 $4,035

5. Water and Sewer Rate
Design 1 2 2 6 10 $2,630

6. Drought Charge
Analysis 1 0 $0

7. Water and Sewer
Capacity Fee Studies 1 2 1 4 20 27 $6,850

8. Rate and Bill Survey
Comparative Analysis 1 1 6 7 $1,465

9. Rate Workshops 1 4 3 2 2 11 $3,523

10. Community
Meetings 1 6 14 2 22 $6,598

11. Rate Study Reports 1 4 1 1 4 16 2 28 $7,180

12. Proposition 218
Preparation and
Hearings
1 6 8 1 2 17 $5,123

Page 247 of 252 ends

RAFTELIS 22

SEWER COST PROPOSAL
Council Agenda Packet - July 1, 2024

TASKS

1. Project Initiation,
Management, and Kick-Off

2. Analysis of Consumption
and Demand

3. Financial Plan
Development

4. Cost-of-Service Analysis

5. Water and Sewer Rate
Design

6. Drought Charge Analysis

7. Water and Sewer
Capacity Fee Studies

8. Rate and Bill Survey
Comparative Analysis

9. Rate Workshops

10. Community Meetings

11. Rate Study Reports

12. Proposition 218
Preparation and Hearings

13. Financial Model and
Training
In-person Meetings
Web Meetings
Deliverables
2024

MAY JUN JUL AUG SEP OCT NOV DEC APR MAY JUN
2025

JAN FEB MAR

EXHIBIT D

Page 248 of 252 ends

PROJECT TIMELINE
Raftelis will complete the scope of services within the timeframe shown in the schedule below. The proposed schedule assumes a notice-to-proceed by the beginning of May 2024 and that Raftelis will receive the needed data in a timely manner and be able to schedule meetings as necessary. Project completion is estimated for June 2025 . • • •
•
• • ..
••
•• ..
•
•
..
•
•
•• • •
••
• •
••
Council Agenda Packet - July 1, 2024
Attachment - July 1, 2024 City Council Meeting
Water and Sewer Utility Cost of Service and Rate
Design Bids Analysis & Timeline – July 2024
February 8, 2024 – Request for Proposals (RFP) is posted.

March 21, 2024 – RFP closes with five (5) bids received by the due date and time.

April 2024 – An Interdepartmental Review Committee evaluated the proposals based on experience, cost, methodology, expertise, and reference checks.

Project Cost
The cost variations arise from the different proposed strategies for approaching the study, each reflecting the firm’s proposed best practices.

Endeavor Bartle Wells Willdan NBS Raftelis
Project Cost $47,799 $128,850 $64,630 $132,210 $109,706

Overall Rating of Bids Received
Rating was based on a total of 100 points with 25 points per each of the following categories:
qualifications, understanding of the scope of work, methodology, and cost. The firms are listed below in rank order.

Raftelis Bartle Wells Willdan NBS Endeavor
Total Average Score 1 2 2 3 4

May 2024 – Follow-up interviews were conducted with the three (3) highest rated firms.

Overall Rating From Interviews
Rating was listed in rank order.

Raftelis Bartle Wells Willdan
Total Average Score 1 2 3

Page 249 of 252 ends

Council Agenda Packet - July 1, 2024
RESOLUTION NO. 24-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE,

CALIFORNIA, ESTABLISHING AN AD HOC WATER AND SEWER RATE STUDY

COMMITTEE
WHEREAS, the City of La Verne recognizes the importance of fair, equitable, and sufficient water and sewer rates to cover the cost of providing services, ensuring system safety and reliability; and
WHEREAS, the City Council desires to provide residents and businesses with an enhanced opportunity for public participation with an opportunity to offer insights during the proposed water and sewer rate design process; and
WHEREAS, the establishment of an Ad Hoc Water and Sewer Rate Study Committee (hereinafter referred to as the "Committee") will serve as an advisory body to the City Council on matters relating to water and sewer rates; WHEREAS, the Committee will serve a limited term, set to dissolve upon completion of the water and sewer rate study; and
WHEREAS, the bylaws outline the purpose, authority, membership, officers, meetings, duties, responsibilities, and dissolution of the Committee; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of La Verne as follows:

Section 1. The City Council hereby establishes the Ad Hoc Water and Sewer Rate Study Committee.

Section 2. The bylaws of the Ad Hoc Water and Sewer Rate Study Committee are established as specified in Attachment A of this Resolution.

Section 3. That the Mayor shall sign and the Deputy City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force.

PASSED, APPROVED AND ADOPTED this 1st day of July, 2024. ______________________________________
Mayor Tim Hepburn
ATTEST:

Page 250 of 252 ends

Council Agenda Packet - July 1, 2024
_______________________________
Debra Fritz, Deputy City Clerk

CERTIFICATION
I hereby certify that the foregoing Resolution No. 24-XX was duly and regularly adopted by the City Council of the City of La Verne at a meeting thereof held on the 1st day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
Debra Fritz, Deputy City Clerk

Page 251 of 252 ends

Council Agenda Packet - July 1, 2024
City of La Verne – July 1, 2024
Ad Hoc Water and Sewer Rate Study Committee Bylaws
Purpose: The purpose of the Ad Hoc Water and Sewer Rate Study Committee (“Committee”) is to review, analyze, and make recommendations regarding the water and sewer rates for the City of La Verne. The Committee serves a limited term, charged with accomplishing a specific task for a period time. Specifically, the Committee will ensure that the rates are fair, equitable, and sufficient to cover the cost of providing water and sewer services including necessary capital investments, in compliance with California law and best practices. The Committee shall report its findings and recommendations to the City Council, as appropriate, and submit a final report upon completion of its work.

Authority & Compliance: The Committee is established by the La Verne City Council and operates under its authority. The Committee shall function as an advisory body to the City Council. The Committee shall comply with all applicable California laws, including the California Public Records Act, the Brown Act (California Government Code Section 54950 et seq.), and any other relevant regulations. These bylaws may be amended by a majority vote of the Committee members, subject to approval by the City Council.

Committee Composition: The Committee shall consist of no more than five (5) members appointed by the City Council, preferably one per City Council district. Members shall be residents or business owners within the City of La Verne and have an interest in water and sewer rates and policies. Each member shall have one vote. Actions of the Committee require a majority vote of the members present. Staff support for the committee shall be provided by the Public Works Director or their designee.

Term: Members shall serve for the duration of the Committee's existence, which shall not exceed one year unless extended by the City Manager. Because of the timeliness of the Study, any member with two absences may be replaced to ensure the work of the Committee can continue.

Committee Officers and Duties: The officers of the Committee shall be a Chair and a Vice- Chair, elected by the Committee members. The Chair shall preside over all meetings, represent the Committee in its advisory capacity to the City Council, and perform other duties as required.

The Vice-Chair shall assume the duties of the Chair in their absence and perform other duties as assigned.

Meetings: The Committee shall hold regular meetings to provide comments and recommendations to the City Council about the proposed water and sewer rates. Meetings shall be open to the public and conducted in accordance with the Brown Act. Meetings will occur as needed, but at least once every two months, with more frequent meetings occurring as the Study progresses. A majority of the appointed members shall constitute a quorum for the meetings.

Dissolution: The Committee shall be dissolved upon completion of its tasks or by action of the City Council.

Page 252 of 252 ends

Council Agenda Packet - July 1, 2024

La Verne City CouncilJuly 1, 2024

La Verne City Council
July 1, 2024