Agenda packet — Livingston City Council, July 1, 2025 (part 1 of 3)

1 CITY COUNCIL SPECIAL AND REGULAR

MEETING AGENDA
JULY 1, 2025
SPECIAL MEETING: 6:00 P.M. – 7:00 P.M
REGULAR MEETING: 7:00 P.M.

WE ENCOURAGE ALL MEMBERS OF THE PUBLIC TO PARTICIPATE IN THE MEETING VIA TELECONFERENCE BY CALLING (520) 525-8911. ANY MEMBER OF THE PUBLIC

PARTICIPATING VIA TELECONFERENCE WILL BE GIVEN THE OPPORTUNITY TO PROVIDE PUBLIC COMMENT.

ADDITIONALLY, THE REGULAR MEETING WILL BE STREAMED ON YOUTUBE LIVE https://www.youtube.com/channel/UCB_ZmQZIHELh-ECEPZ2VwZg Notice is hereby given that the City Council will hold a Special and Regular Meeting on July 1, 2025, at the City Council Chambers, 663 Main Street, Livingston, California. Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990.

Persons requesting accommodation should contact the Deputy City Clerk at least 24 hours prior to this meeting at (209) 394-8041, Ext. 121. Any writings or documents pertaining to an Open Session item provided to a majority of the members of the legislative body less than 72 hours prior to the meeting shall be made available for public inspection by email if requested. Public comments can be submitted via emailed at [email protected]. Comments must be received by 2:00 p.m. on the day of the City Council meeting in order for them to be distributed to the Council prior to consideration of the matter.

You will need to provide: Meeting date, item number, name, email and comment (please limit to 300 words or 3 minutes). Please include: PUBLIC COMMENT in the subject for the email. Written comments will not be read aloud at the meeting, but will be reported as received for the record. If you do not receive an acknowledgement of receipt by 4:00 p.m., please call the City Clerk’s Office at (209) 394-8041, Ext. 121 (Note: This technology is not a guaranteed method).

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2 SPECIAL MEETING

1. Call to Order

2. Roll Call

3. Pledge of Allegiance.

4. Moment of Silence – First Responders and Military Members.

5. Citizen Comments

CLOSED SESSION
A “Closed” or “Executive” Session of the City Council or the Successor Agency to the Redevelopment Agency of the City of Livingston may be held in accordance with state law which may include, but is not limited to, the following types of items:
personnel matters, labor negotiations, security matters, providing instructions to real property negotiators, conference with legal counsel regarding pending litigation. The Closed Session will be held in the City Council Chambers located at 663 Main Street, Livingston, California. Any public comment on Closed Session items will be taken before the Closed Session.

Any required announcements or discussion of Closed Session items or actions following the Closed Session will be made in the City Council Chambers, 633 Main Street, Livingston, California.

6. Conference with Labor Negotiator (Government Code Section 54957.6) Labor Negotiator: Jose Antonio Ramirez, City Manager
Employee Organizations:

OE3- Clerical Bargaining Unit
OE3 - Police Supervisory Employees Association
OE3 - Management/Confidential Bargaining Unit
OE3 - Livingston Police Officer Association
AFSCME- Public Works and Parks Unit

REGULAR MEETING
CALL TO ORDER Next Resolution No.: 2025-65
Next Ordinance No.: 661
Pledge of Allegiance.

Moment of Silence – First Responders and Military Members.

Roll Call.

Changes to the Agenda.

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3 CITIZEN COMMENTS
This section of the agenda allows members of the public to address the City Council on any item NOT on the agenda. Members of the public, when recognized by the Mayor, should come forward to the lectern, and identify themselves. Comments are normally limited to three (3) minutes. In accordance with State Open Meeting Laws, no action will be taken by the City Council this evening.

AWARDS, PRESENTATIONS, PROCLAMATIONS

1. Presentation by Dahlin Group: Rec-Plex.

COUNTY SUPERVISOR’S ANNOUNCEMENTS AND REPORTS
Supervisor Jim Pacheco Announcements and Reports.

ANNOUNCEMENTS AND REPORTS
City Staff Announcements and Reports.

City Manager Announcements and Reports.

CONFLICT OF INTEREST DECLARATION
Members of the City Council will declare an actual or apparent conflict of interest before discussions or decisions about any matters in which they or anyone with whom they have a close personal relationship could directly or indirectly benefit or where such a benefit could be perceived.

CONSENT AGENDA
Items on the Consent Calendar are considered routine or non-controversial and will be enacted by one vote, unless separate action is requested by a member of the public, the City Manager or City Council Member.

There will be no separate discussion of these items unless members of the public, City Council or City Manager request that specific items be removed. Public comment on consent agenda items shall be limited to three (3) minutes per-person regardless of the number of items contained within the consent agenda

2. Consideration Of Resolution Approving A Professional Services Agreement with Lance, Soll & Lunghard, LLP (LSL) For Audit. Staff Recommendation: Approve Resolution.

3. Consideration of a Resolution Authorizing And Approving A Service Agreement With Robert Half (Staffing Provider) To Assist With Filling A Temporary Job Placement For The Accountant II and/or Senior Accountant Position. Staff Recommendation: Approve Resolution.

4. Consideration of a Resolution Authorizing the City Manager to be the Agent of the Federal Land and Water Conservation Fund Grant In-Aid-Program for the “Rec-Plex” Park Facility on 7th and C Streets. Staff Recommendation: Approve Resolution.

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4 5. Consideration of a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Willdan Financial Services for Water, Wastewater, and Solid Waste Rates Study for an Amount Not to Exceed $72,895. Staff Recommendation: Approve Resolution.

PUBLIC HEARING

6. Consideration of Land Use Alternatives for Updating the City of Livingston’s 2040 General Plan Land Use Diagram. (Continuance of Public Hearing to August 5, 2025).

7. Consideration of a Resolution Amending And/Or Approving The Engineer’s Report For The Livingston Benefit Assessment Districts And The Levy And Collection Of Annual Assessments Within Such Districts For Fiscal Year 2025/2026 And Confirming Diagrams And Assessments Pursuant To The Benefit Assessment Act Of 1982 And As Provided By Articles Xiii C And Xiii D Of The California Constitution. Staff Recommendation: Open Public Hearing, Close Public Hearing and Approve Resolution.

8. Consideration of a Resolution Amending And/Or Approving The Engineer’s Report For The Citywide Consolidated Landscape Maintenance Assessment District No. 1 And The Levy And Collection Of Annual Assessments Within Such District For Fiscal Year 2025/2026 And Confirming Diagrams And Assessments Pursuant To The Landscaping And Lighting Act Of 1972 And As Provided By Articles Xiii C And Xiii D Of The California Constitution. Staff Recommendation: Open Public Hearing, Close Public Hearing and Approve Resolution.

ANNOUNCEMENTS AND REPORTS
City Council Members’ Announcements and Reports.

Mayor’s Announcements and Reports.

Robert Wallis
• Special City Selection Committee of the San Joaquin Valley Air Pollution Control Board –Robert Wallis, Representative and Japjeet Uppal, Alternative.
• City Council Liaison - Livingston Planning Commission – Jason Roth and Alternate Robert Wallis.
• Utility Stakeholders Committee – Japjeet Uppal and Robert Wallis.

Jason Roth
• Merced County Local Agency Formation Commission (LAFCO) Jason Roth, Representative. • Merced County Mosquito Abatement District Board of Directors – Gurpal Samra, Representative and Jason Roth, Alternate.
• City Council Liaison - Livingston Planning Commission – Jason Roth and Alternate Robert Wallis.

Japjeet Uppal
• Central Valley Division League of California Cities – Jose Moran, Representative and Japjeet Uppal, Alternate.

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5 • Special City Selection Committee of the San Joaquin Valley Air Pollution Control Board – Robert Wallis, Representative and Japjeet Uppal, Alternative. • City Council Liaison - Parks, Recreation and Arts Commission – Jose Moran and Alternate Liaison Japjeet Uppal.
• Merced Integrated Regional Water Management Plan (MIRWMA) – Japjeet Uppal, Representative and Robert Wallis, Alternate Representative. • Utility Stakeholders Committee – Japjeet Uppal and Robert Wallis.

Gurpal Samra
• Merced County Mosquito Abatement District Board of Directors – Gurpal Samra, Representative and Jason Roth, Alternate.
• Merced County Association of Governments (MCAG) Governing Board – Gurpal Samra, Representative and Jose Moran, Alternate.

Jose Moran
• Central Valley Division League of California Cities – Jose Moran, Representative and Japjeet Uppal, Alternate.
• Merced County Association of Governments (MCAG) Governing Board – Gurpal Samra, Representative and Jose Moran, Alternate.
• City Council Liaison - Parks, Recreation and Arts Commission – Jose Moran and Alternate Liaison Japjeet Uppal.

COUNCIL DIRECTION ON FUTURE AGENDA ITEMS

ADJOURNMENT

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STAFF REPORT

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AGENDA ITEM: Adopt a Resolution Approving a Contract with Lance, Soll & Lunghard, LLP (LSL) for Audit Services for Three (3) Years from Fiscal Year 2025-2026 through Fiscal Year 2027-2028 not to Exceed Combined Total of $173,375, with the Option for Two (2) Additional Years from Fiscal Year 2028-2029 and Fiscal Year 2029-2030 not to Exceed Combined Total of $296,275 for all Five (5) Years.

MEETING DATE: July 1, 2025

PREPARED BY: Happy Bains, Finance Director/Assistant City Manager REVIEWED BY: Jose Antonio Ramirez, City Manager

RECOMMENDATION
Staff recommend that the City Council adopt a Resolution approving a contract with Lance, Soll & Lunghard, LLP (LSL) for Audit Services for fiscal years 2025-2026 through fiscal year 2027- 2028 not to exceed combined total of $173,375, with option for two (2) additional years from fiscal year 2028-2029 and fiscal year 2029-2020 not to exceed combined total of $296,275 for all five (5) years.

BACKGROUND
The City entered a three-year contract with Lance, Soll & Lunghard, LLP (LSL) for audit services from fiscal years 2020-2021 through 2022-2023 with an option for two additional years for fiscal year 2023-2024 and fiscal year 2024-2025.

Annual audits are required by the City’s Municipal Code, federal and state funding and continuing disclosure for an outstanding bond issue.

DISCUSSION
Approve a three (3) year professional audit service agreement to cover auditing services for fiscal years 2025-2026 through fiscal year 2027-2028 with an option for two (2) additional years from fiscal year 2028-2029 and fiscal year 2029-2020.

FISCAL IMPACT
The amount for this contract will be budgeted for in each fiscal year. For fiscal year 2025/2026 the budget has been included in the adopted budget.

ATTACHMENTS

1. Resolution.

2. Contract: Professional Services Agreement between the City and LSL to provide professional audit services.

3. Proposal

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RESOLUTION NO. 2025-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING

A PROFESSIONAL SERVICES AGREEMENT WITH LANCE, SOLL & LUNGHARD (LSL), LLP FOR AUDIT SERVICES
WHEREAS, the City Council desires to adhere to the City of Livingston Code (the “Code”), federal and state agencies and the requirements of conducting annual audits of its financial statements to ensure transparency and accountability in its financial operations; and ; and WHEREAS, accounting rules promulgated by the Government Accounting Standards Board (GASB) are very technical in nature;
WHEREAS, Lance, Soll & Lunghard, LLP (LSL) has previously provided audit services to the City from fiscal years 2020-2021 through 2022-2023, demonstrating competence and reliability in fulfilling the City’s auditing needs;
WHEREAS, the City Council has determined that it is in the best interest of the City to continue its professional relationship with LSL for the provision of audit services for the upcoming fiscal years 2025-2028 with an option to extend for two additional fiscal years (2028-2030); NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Livingston as follows:

Section 1. The City Council finds a benefit in obtaining auditing assistance and thus does hereby authorize a professional services agreement with Lance, Soll & Lunghard, LLP to assist with completing the following:
- Performing a financial audit of the basic financial statements of the City. - Performing a GANN Limit agreed-upon-procedures engagement and report. - Preparing state controller’s report for the City.
- Conducting a Single Audit in accordance with federal Uniform Guidance when applicable thresholds are met.
- Remaining in compliance with Government Code Section 12410.6(b). - Providing extensive GASB assistance to the City throughout the year.

1. Section 2. Authorize the City Manager to negotiate and execute a Professional Services Agreement for additional auditing assistance in accordance with legal concurrence with a contract amount not to exceed $173,375 for the initial three fiscal years and shall not exceed $296,275 for all five fiscal years, should the extension option be exercised.

Section 3. This Resolution will become effective immediately.

I hereby certify that the foregoing Resolution No. ____ is a full, true and correct copy of a resolution duly passed and adopted by the City Council of the City of Livingston at a regular meeting thereof duly held on the 1st of July 2025, by the vote recorded as follows:

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By:

Jose A. Moran, Mayor
of City of Livingston
Resolution No.

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AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST
Monica Cisneros, Deputy City Clerk

APPROVED AS TO LEGAL FORM
________________________
Marc Barraza Tran, City Attorney

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CITY OF LIVINGSTON

PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LIVINGSTON

AND LANCE, SOLL, & LUNGHARD, LLP

TO PROVIDE PROFESSIONAL AUDIT SERVICES
THIS AGREEMENT, dated for convenience this 1st day of July, 2025, is by and between Lance, Soll, & Lunghard, LLP (“CONSULTANT”) and the City of Livingston, a California municipal corporation (“CITY”);
RECITALS:

WHEREAS, CONSULTANT is specially trained, experienced, and competent to perform Auditing Services, which are required by this agreement; and WHEREAS, CITY selected the CONSULTANT pursuant to said qualifications; and WHEREAS, CONSULTANT is willing to render such services, as hereinafter defined, on the following terms and conditions;
NOW, THEREFORE, CONSULTANT and the CITY agree as follows:

AGREEMENT
(1) Scope of Service
CONSULTANT agrees to perform auditing and consultation services in accordance with the scope of work and fee proposal provided by CONSULTANT, attached hereto as Exhibit “A” and incorporated herein by reference.

CONSULTANT agrees to diligently perform these services in accordance with the upmost standards of its profession and to CITY’S satisfaction. (2) Compensation
CITY hereby agrees to pay CONSULTANT a sum not to exceed $173,375, for the Professional Auditing Services rendered in the first three (3) years of this agreement as follows: Year-1 (FY2025-2026): $56,400; Year-2 (FY2026-2027):
$57,775; and Year-3 (FY2027-2028): $59,200. At the discretion of the CITY, the agreement may be extended for two (2) additional years at the rates not to exceed:

Year-4 (FY2028-2029): $60,700 and Year-5 (FY2029-2030): $62,200 for a combined total of $296,275 set forth in Exhibits “A”. CONSULTANT shall be paid any uncontested sum due and payable within thirty (30) days of receipt of billings containing all information pursuant to Paragraph 5 below. Compensation for any task must be equal to or less than the percentage of task complete.

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CITY OF LIVINGSTON – AGREEMENT WITH LANCE, SOLL, & LUNGHARD, LLP TO

PROVIDE PROFESSIONAL AUDITING SERVICES

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In no event shall CONSULTANT be entitled to compensation for work not included in Exhibit “A”, unless a written change order or authorization describing the extra work and payment terms has been executed by CITY’s authorized representative prior to the commencement of the work. Payment is made based on a time and materials basis.

(3) Effective Date and Term.

The effective date of this Agreement is July 1st, 2025, and it shall continue for a period of three (3) years through July 1st, 2028, with the option to extend for two (2) additional years through July 1st, 2030.
(4) Independent Contractor Status
It is expressly understood and agreed by both parties that CONSULTANT, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the CITY. As an independent contractor, CONSULTANT is responsible for controlling the means and methods to complete the scope of work described in Exhibit “A” to City’s satisfaction. CONSULTANT expressly warrants not to represent, at any time or in any manner, that CONSULTANT is an employee of the CITY. (5) Billings
CONSULTANT’S bills shall include a list of all tasks, a total amount due, the amounts previously billed, and the net amount due on the invoice. Except as specifically authorized by CITY, CONSULTANT shall not bill CITY for duplicate services performed by more than one person. In no event shall CONSULTANT submit any billing for an amount in excess of the rates or the maximum amount of compensation provided in section (2) for either task or for the entire Agreement, unless modified by a properly executed change order.
(6) Advice and Status Reporting
CONSULTANT shall provide the CITY with timely reports, orally or in writing, of all significant developments arising during performance of its services hereunder, and shall furnish to CITY such information as is necessary to enable CITY to monitor the performance of this Agreement.
(7) Assignment of Personnel
CONSULTANT shall assign only competent personnel to perform services pursuant to this Agreement. If CITY asks CONSULTANT to remove a person assigned to the work called for under this Agreement, CONSULTANT agrees to do so immediately, without requiring the City to process a reason or explanation for its request.

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CITY OF LIVINGSTON – AGREEMENT WITH LANCE, SOLL, & LUNGHARD, LLP TO

PROVIDE PROFESSIONAL AUDITING SERVICES

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The services shall be performed by, or under the direct supervision, of CONSULTANT's Authorized Representative: PERSON, CONSULTANT shall not replace its Authorized Representative without the prior written approval by the CITY.
(8) Assignment and Subcontracting
It is recognized by the parties hereto that a substantial inducement to CITY for entering into this Agreement was, and is, the professional reputation and competence of CONSULTANT. Neither this Agreement nor any interest therein may be assigned by CONSULTANT without the prior written approval of CITY’S authorized representative.

CONSULTANT shall not subcontract any portion of the performance contemplated and provided for herein, other than the subcontractors noted in the proposal, without prior written approval of the CITY’S authorized representative. (9) Insurance
On or before beginning any of the services or work called for by any term of this Agreement, CONSULTANT, at its own cost and expense, shall carry, maintain for the duration of the Agreement, and provide proof thereof that is acceptable to the CITY the insurance specified in subsections (a) through (c) below with insurers and under forms of insurance satisfactory in all respects to the CITY.

CONSULTANT shall not allow any subcontractor to commence work on any subcontract until all insurance required of the CONSULTANT has also been obtained for the subcontractor. Verification of this insurance shall be submitted and made part of this Agreement prior to execution.
(a) Workers’ Compensation. CONSULTANT shall, at CONSULTANT’S sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by CONSULTANT. Said Statutory Workers' Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than one million dollars. In the alternative, CONSULTANT may rely on a selfinsurance program to meet these requirements provided that the program of self-insurance complies fully with the provisions of the California Labor Code. The insurer, if insurance is provided, or the CONSULTANT, if a program of self-insurance is provided, shall waive all rights of subrogation against the CITY for loss arising from work performed under this Agreement.
(b) Commercial General and Automobile Liability Insurance.

CONSULTANT, at CONSULTANT’S own cost and expense, shall

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CITY OF LIVINGSTON – AGREEMENT WITH LANCE, SOLL, & LUNGHARD, LLP TO

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maintain commercial general and automobile liability insurance for the period covered by this Agreement in an amount not less than one million dollars per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles.

Coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) and Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 (any auto).

Each of the following shall be included in the insurance coverage or added as an endorsement to the policy:
(i) CITY, its officers, employees, agents, and volunteers are to be covered as insured with respect to each of the following:
liability arising out of activities performed by or on behalf of CONSULTANT, including the insider’s general supervision of CONSULTANT; products and completed operations of
CONSULTANT; premises owned, occupied or used by
CONSULTANT. The coverage shall contain no special
limitations on the scope of protection afforded to CITY, its officers, employees, agents, or volunteers.
(ii) The insurance shall cover on an occurrence or an accident basis, and not on a claim made basis.
(iii) An endorsement must state that coverage is primary insurance and that no other insurance affected by the CITY will be called upon to contribute to a loss under the coverage. (iv) Any failure of CONSULTANT to comply with reporting provisions of the policy shall not affect coverage provided to CITY and its officers, employees, agents, and volunteers. (v) Insurance is to be placed with California-admitted insurers with a Best’s rating of no less than A: VII.

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CITY OF LIVINGSTON – AGREEMENT WITH LANCE, SOLL, & LUNGHARD, LLP TO

PROVIDE PROFESSIONAL AUDITING SERVICES

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(vi) Notice of cancellation or non-renewal must be received by CITY at least thirty days prior to such change.
(c) Professional Liability. CONSULTANT, at CONSULTANT’S own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than One Million Dollars ($1,000,000) per claim made and per policy aggregate covering the licensed professionals’ errors and omissions, as follows:
(i) Any deductible or self-insured retention shall not exceed $150,000 per claim.
(ii) Notice of cancellation, material change, or non-renewal must be received by the CITY at least thirty days prior to such change shall be included in the coverage or added as an endorsement to the policy.
(iii) The policy must contain a cross liability or severability of interest clause.
(iv) The following provisions shall apply if the professional liability coverages are written on a claims made form:

1. The retroactive date of the policy must be shown and must be before the date of the Agreement.

2. Insurance must be maintained and evidence of
insurance must be provided for at least five years after completion of the Agreement or the work, so long as
commercially available at reasonable rates.

3. If coverage is canceled or not renewed and it is not replaced with another claims made policy form with a
retroactive date that precedes the date of this
Agreement, CONSULTANT must provide extended
reporting coverage for a minimum of five years after
completion of the Agreement or the work.

The CITY shall have the right to exercise at the
CONSULTANT’S cost, any extended reporting
provisions of the policy should the CONSULTANT
cancel or not renew the coverage.

4. A copy of the claim reporting requirements must be

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submitted to the CITY prior to the commencement of
any work under this Agreement.
(d) Deductibles and Self-Insured Retentions. CONSULTANT shall disclose the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement.

During the period covered by this Agreement, upon express written authorization of the CITY’s authorized representative,
CONSULTANT may increase such deductibles or self-insured retentions with respect to CITY, its officers, employees, agents, and volunteers. The CITY’s authorized representative may condition approval of an increase in deductible or self-insured retention levels upon a requirement that CONSULTANT procure a bond
guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
(e) Notice of Reduction in Coverage. In the event that any coverage required under subsections (a), (b), or (c) of this section of the Agreement is reduced, limited, or materially affected in any other manner, CONSULTANT shall provide written notice to CITY at CONSULTANT’S earliest possible opportunity and in no case later than five days after CONSULTANT is notified of the change in coverage.
(f) In addition to any other remedies CITY may have if CONSULTANT fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, CITY may, at its sole option:
(i) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
(ii) Order CONSULTANT to stop work under this Agreement or withhold any payment which becomes due to CONSULTANT
hereunder, or both stop work and withhold any payment, until CONSULTANT demonstrates compliance with the
requirements hereof;
(iii) Terminate this Agreement.

Exercise of any of the above remedies, however, is an alternative to other remedies CITY may have and is not the exclusive remedy for CONSULTANT’S breach.

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(10) Indemnification - CONSULTANT’S Responsibility
As to the CONSULTANT’S work hereunder, it is understood and agreed that (a) CONSULTANT has the professional skills necessary to perform the work, (b) CITY relies upon the professional skills of CONSULTANT to perform the work in a skillful and professional manner, and (c) CONSULTANT thus agrees to so perform.

Acceptance by CITY of the work performed under this Agreement does not operate as a release of said CONSULTANT from such professional responsibility for the work performed.

It is further understood and agreed that CONSULTANT is apprised of the scope of the work to be performed under this Agreement and CONSULTANT agrees that said work can and shall be performed in a fully competent manner in accordance with the standard of care applicable to CONSULTANT’S profession.

CONSULTANT shall indemnify, defend, and hold CITY, its officers, employees, agents, and volunteers harmless from and against any and all liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused by the willful misconduct or negligent acts or omissions of CONSULTANT, its employees, subcontractors, or agents, or on account of the performance or character of this work, except for any such claim arising out of the negligence or willful misconduct of the CITY, its officers, employees, agents, or volunteers. It is understood that the duty of CONSULTANT to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance of insurance certificates and endorsements required under this Agreement does not relieve CONSULTANT from liability under this indemnification and hold harmless clause.

This indemnification and hold harmless clause shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.
(11) Licenses
If a license of any kind, which term is intended to include evidence of registration, is required of CONSULTANT, its employees, agents, or subcontractors by federal or state law, CONSULTANT warrants that such license has been obtained, is valid and in good standing, and CONSULTANT shall keep it in effect at all times during the term of this Agreement, and that any applicable bond has been posted in accordance with all applicable laws and regulations.
(12) Business Licenses
CONSULTANT shall obtain and maintain a CITY of LIVINGSTON Business License until all Agreement services are rendered and accepted by the CITY. (13) Termination

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Either CITY or CONSULTANT may cancel this Agreement upon 30 days written notification to the other party. In the event of termination, the CONSULTANT shall be entitled to compensation for services performed to the effective date of termination; provided, however, that the CITY may condition payment of such compensation upon CONSULTANT’S delivery to the CITY of any or all documents, photographs, computer software, video and audio tapes, and other materials provided to CONSULTANT or prepared by or for CONSULTANT or the CITY in connection with this Agreement.
(14) Funding
CONSULTANT agrees and understands that renewal of this agreement in subsequent years is contingent upon action by the City Council consistent with the appropriations limits of Article XIII (B) of the California Constitution and that the Council may determine not to fund this agreement in subsequent years. (15) Notices
All contracts, appointments, approvals, authorizations, claims, demands, Change Orders, consents, designations, notices, offers, requests and statements given by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if (1) personally served, (2) sent by the United States mail, postage prepaid, (3) sent by private express delivery service, or (4) in the case of a facsimile transmission, if sent to the telephone FAX number set forth below during regular business hours of the receiving party and followed with two (2) Days by delivery of a hard copy of the material sent by facsimile transmission. Personal service shall include, without limitation, service by delivery and service by facsimile transmission.

To City: City of Livingston
City Clerk
1416 C Street
Livingston, CA 95334
Copy to: City of Livingston
Finance Department
1416 C Street
Livingston, CA 95334
MAIN: (209) 394-8041
FAX: (209) 394-4190
To Consultant: LSL, LLP
2151 River Plaza Drive, Suite 150
Sacramento, CA 95833
Phone: (916) 503-9691

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(16) Miscellaneous
(a) Consent. Whenever in this Agreement the approval or consent of a party is required, such approval or consent shall be in writing and shall be executed by a person having the express authority to grant such approval or consent.
(b) Controlling Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the Laws of the State of California.
(c) Definitions. The definitions and terms are as defined in these specifications.
(d) Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreement, which directly results from an Act of God or an act of a superior governmental authority.
(e) Headings. The paragraph headings are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement.
(f) Incorporation of Documents. All documents constituting the Agreement documents described in Section 1 hereof and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated in the Agreement and shall be deemed to be part of this Agreement. (g) Integration. This Agreement and any amendments hereto between the parties constitute the entire Agreement between the parties concerning the Project and Work, and there are no other prior oral or written agreements between the parties that are not incorporated in this Agreement.
(h) Modification of Agreement. This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the parties.
(i) Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term or other stipulation in the Agreement shall define or otherwise control, establish or limit the performance required or permitted or to be required of or permitted by either party.

All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions.

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CITY OF LIVINGSTON – AGREEMENT WITH LANCE, SOLL, & LUNGHARD, LLP TO

PROVIDE PROFESSIONAL AUDITING SERVICES

Page 10 of 11 ends

(j) Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions of this Agreement not so affected shall remain in full force and effect.
(k) Status of CONSULTANT. In the exercise of rights and obligations under this Agreement, CONSULTANT acts as an independent contractor and not as an agent or employee of CITY.

CONSULTANT shall not be entitled to any rights and benefits accorded or accruing to the City Council members, officers or employees of CITY, and CONSULTANT expressly waives any and all claims to such right and benefits.
(l) Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and shall apply to and bind, the successors and assigns of the parties.
(m) Time of the Essence. Time is of the essence of this Agreement and each of its provisions. In the calculation of time hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday or any Day observed as a legal holiday by CITY, the time for performance shall be extended to the following Business Day.
(n) Venue. In the event that suit is brought by either party hereunder, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of San Joaquin or in the United States District Court for the Eastern District of California. (o) Recovery of Costs. The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs, including reasonable attorney’s fees, incurred or expended in connection with such action against the non-prevailing party.
(17) Notice to Proceed
Prior to commencing work under this agreement, CONSULTANT shall receive a written “Notice to Proceed” from CITY. A Notice to Proceed shall not be issued until all necessary insurances have been received. City shall not be obligated to pay CONSULTANT for any services prior to issuance of the Notice to Proceed.

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CITY OF LIVINGSTON – AGREEMENT WITH LANCE, SOLL, & LUNGHARD, LLP TO

PROVIDE PROFESSIONAL AUDITING SERVICES

Page 11 of 11 ends

(18) Signatures
The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of the CONSULTANT and the CITY. This agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

Approved as to Form:

City of Livingston
City Attorney

Date

Approved By: City of Livingston
1416 C Street
Livingston, CA 95334

Jose Antonio Ramirez Date
City Manager
Consultant: LSL, LLP
2151 River Plaza Drive, Suite 150
Sacramento, CA 95833
Fed ID # ____________
Business License # _____________

Signature Date

_________________________________________
(Print Name and Title)

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May 29, 2025
Happy Bains
Finance Director
City of Livingston
Dear Mr. Bains,
As you are aware, our contract with the City of Livingston (“City”) for auditing services will expire with the fiscal year ending June 30, 2025. Over the years, we have provided the City with auditing and accounting services which included:
• Performing a financial audit of the basic financial statements of the City. • Performing a GANN Limit agreed-upon-procedures engagement and report. • Preparing state controller’s report for the City.
• Conducting a Single Audit in accordance with federal Uniform Guidance when applicable thresholds are met.

We have made it an absolute priority to provide the City with the best service available and we would like to continue to provide this level of service to the City. Since LSL specializes in the audits of local government and has an extensive government services staff, we provide for staff rotation on your engagement so that the City will always receive a fresh look at its system and records. This, coupled with the knowledge base we have gained from working with the City over the years, provides for optimal audit services.

In addition, the lead audit partner having primary responsibility for the audit will be changed from Brandon Young to James Butera beginning with the audit for the fiscal year ending June 30, 2026, so the City will remain in compliance with Government Code Section 12410.6.(b). In addition, there will be new Manager rotations on engagements beginning with the audit for the fiscal year ending June 30, 2026.

We would like to propose a three-year extension to our original agreement to provide continuous and undisrupted auditing services to the City, with an option to extend for two additional one-year periods. As a part of our services, LSL LLP will continue to provide extensive Governmental Accounting Standards Board (GASB) assistance to the City throughout the year.

LSLCPAS.COM

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Ls~ ....
•••• ••
City of Livingston

Page 2 ends

Please see the schedule below for our proposed fees for the next year. The services to be performed, fee structure and billing methods would remain unchanged from our original agreement.

All-Inclusive Maximum Price by Report
Report 2025-26 2026-27 2027-28 Optional
2028-29
Optional
2029-30
City Audit Report, Management Letter, and
Related Reports $45,800 $47,175 $48,600 $50,100 $51,600 GANN Limit Review Report $500 $500 $500 $500 $500
Single Audit (if applicable)* $5,000 $5,000 $5,000 $5,000 $5,000 Annual State Controller's and Street Report $5,100 $5,100 $5,100 $5,100 $5,100 Out-of-Pocket Expenses Included Included Included Included Included Total for Fiscal Year
(Not-to-Exceed) $56,400 $57,775 $59,200 $60,700 $62,200 *Price includes 1 major program. Each additional program is $4,000.

Again, LSL LLP looks forward to continuing to provide quality services to the City of Livingston. Please sign below to acknowledge your acceptance of this agreement and return to my attention. Should you or any other representative of the City have additional questions regarding this agreement, please do not hesitate to contact James Butera, Director at (714)-592-1369.

Very truly yours,
Signature
Date

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Ls~ ....
•••• ••
LSL_, LLP
Ls~ ....
•••• ••

Page 1 of 1 ends

STAFF REPORT
AGENDA ITEM: Authorizing and Approving a Service Agreement with Robert Half (Staffing Provider) to assist with filling a temporary job placement for the Accountant II and/or Senior Accountant position MEETING DATE: July 1, 2025
PREPARED BY: Arcelia Cruz, Human Resources Coordinator

REVIEWED BY: Happy Bains, Finance Director/Assistant City Manager Jose Antonio Ramirez, City Manager
RECOMMENDATION:

Staff recommends the City Council adopt a resolution authorizing the City Manager to execute a service agreement with Robert Half to assist with filling a temporary job placement for the Accountant II and/or Senior Accountant position.

BACKGROUND AND DISCUSSION:

The Senior Accountant role has been open and available since March of 2025, and most recently, the Accountant II incumbent gave their two weeks’ notice which will require us to back fill either of these positions with temporary personnel until the permanent positions are filled.

It is critical to backfill the Accountant II and Senior Accountant roles temporarily to support the finance department in all aspects of the accounting duties and responsibilities currently these functions are being absorbed by the Finance Director/Assistant City Manager.

We have tentatively scheduled written examinations for the Senior Accountant and Accountant II positions for the week of July 7, 2025. Candidates that pass the written examinations will be considered to participate in the oral evaluations. We anticipate that we will have the permanent Accountant II and Senior Accountant positions filled by mid-August to late September.

FISCAL IMPACT:

No additional fiscal impact to Fiscal Year 2025-2026 budget. Salary savings from the vacancy of the Accountant II and Senior Accountant positions will be utilized to fund these temporary positions.

ATTACHMENTS:

1. Resolution

2. Robert Half Service Agreement

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Page 1 of 2 ends

RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON

AUTHORIZING AND APPROVING A SERVICE AGREEMENT WITH ROBERT

HALF (STAFFING PROVIDER) TO ASSIST WITH FILLING A TEMPORARY

JOB PLACEMENT FOR THE ACCOUNTANT II AND/OR SENIOR

ACCOUNTANT POSITION
WHEREAS, the City of Livingston Human Resources Coordinator has met with representatives of Robert Half staffing service provider;
WHEREAS, the City requires assistance with backfilling the Accountant II and/or Senior Accountant roles with temporary personnel until the permanent positions are filled; and WHEREAS, the City of Livingston desires to enter into a service agreement with Robert Half for temporary staffing until the permanent positions are filled.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livingston as follows:

Section 1. The City Council authorizes the City Manager to execute the services agreement with Robert Half, attached hereto and incorporated herein as Exhibit A.

Section 2. This resolution will become effective immediately.

Section 3. No additional fiscal impact to Fiscal Year 2025-2026 budget.

Section 4. Salary savings from the vacancy of the Accountant II and Senior Accountant positions will be utilized to fund these temporary positions.

I hereby certify that the foregoing Resolution No. 2025-___ is a full, true and correct copy of a resolution duly passed and adopted by the City Council of the City of Livingston at a regular meeting thereof duly held on the 1st day of July 2025, by the vote recorded as follows:

AYES:

NOES:

ABSENT:

ABSTAIN:

By: ______________________________
Jose A. Moran, Mayor
of the City of Livingston
ATTEST:
___________________________________
Monica Cisneros, Deputy City Clerk
of the City of Livingston

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Page 2 of 2 ends

APPROVED AS TO LEGAL FORM
____________________________________
Marc Barraza Tran, City Attorney
of the City of Livingston

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1020 10th Street
Suite 225
Modesto, CA 95354
T 209.232.1991
www.roberthalf.com
Robert Half Temporary Staffing Services – City of Livingston This document is to establish the cost/fees associated with providing temporary staffing services for the Accountant II position.

Contract Finance & Accounting (CFA)
Overview:

CFA provides highly skilled accounting professionals for both short-term temporary and/or temp-to-hire roles.

Cost/Fees
The hourly bill rate range would be $45-60/hour.

The conversion fee schedule is the following:
our standard conversion (buyout) fee starts at 35% of the candidate’s annual salary. However, we have reduced that fee to 25%.

Business Days Worked Fee
0 – 173 hours 25% of annual starting salary
174- 346 hours 20% of annual starting salary
347-519 hours 15% of annual starting salary
529-692 hours 10% of annual starting salary
693-865 hours 5% of annual salary
865 hours Minimum fee of $2,000
Full-Time Engagement Professionals (FTEP)
Overview:

FTEP provides clients with specialized support from professionals who have ongoing project experience through Robert Half, delivering higher continuity and expertise in critical initiatives.

Cost/Fees
The hourly bill rate range would be $75-90/hour.

FTEPs are ineligible to be converted as permanent employees.

Page 25 of 363 ends

lli] Robert Half®
Talent Solutions
Personal & Confidential
CONTACT NAME Job Order Number: Job Order #

COMPANY NAME
STREET ADDRESS 1
STREET ADDRESS 2 OR CITY, ST ZIP

CITY, ST ZIP OR SPACE IF NOT REQUIRED
Dear Contact First Name,
Thank you for selecting Robert Half to meet your talent solutions needs. Candidate Name is scheduled to start with Company Name as a Functional Role on . As agreed, we will invoice your firm at the rate of per hour. Overtime will be billed at 1.50 times such rate. Please find the enclosed General Conditions of Assignment and Terms of Payment for your review.

Our professional will submit a time report for verification and approval at the end of each week. Your approval thereby will indicate you have read and agree to the enclosed General Conditions of Assignment and Terms of Payment.

Please do not hesitate to contact us if you have any questions or we can be of additional service. We look forward to working with you.

Sincerely,
Robert Half
Branch Address Line 1
Branch Address Line 2
Branch Address Line 3
(800) 803-8367
©Robert Half Inc. 2025. All rights reserved. An Equal Opportunity Employer M/F/Disability/Veterans

Page 26 of 363 ends

lli] Robert Half
Branch Address Line 1, Branch Address Line 2, Branch Address Line 3

GENERAL CONDITIONS OF ASSIGNMENT
Thank you for your confidence in Robert Half. The following General Conditions of Assignment and the enclosed Terms of Payment apply to this assignment.

Scope of
Assignment
Our professional is only authorized to perform work within the scope of the assignment. It is your responsibility to provide appropriate direction, guidance or oversight to our professional for satisfactory performance on your assignment. You will not permit our professional to use computers or other electronic devices, software, services, tools, e-mail accounts or network equipment owned or licensed by our professional.

Since Robert Half is not a professional accounting firm, it is expressly understood that our professionals are not authorized to render an opinion on behalf of Robert Half or on your behalf on financial statements, nor are our professionals authorized to sign the name of Robert Half on any document or to sign their own names on financial statements or tax returns.

Client's
Responsibility
It is understood that you are responsible for implementing and maintaining usual, customary and appropriate internal accounting procedures and controls, internal controls and other appropriate procedures and controls (including information technology, proprietary information, creative designs and trade secret safeguards) for your company and we shall not be responsible for any losses, liabilities or claims arising from the lack of such controls or procedures.

Please notify us immediately if you require Robert Half to perform background checks or other placement screenings of our professional. We will conduct such checks or screenings for you only if they are described in a signed, written amendment to these General Conditions of Assignment.

Cash Handling and Other Financial Transactions and Activities: If you permit or allow our professional to sign, endorse, wire, transport or otherwise convey cash, securities, checks, or any negotiable instruments or valuables, or conduct financial transactions or other related activities, you accept sole responsibility for all claims, demands and liability that may arise from permitting these activities. You represent and warrant that to the extent you permit or allow our professional to engage in the activities described in this paragraph, you will not permit or allow our professional to handle more than (i) $1,000 per day if you are a non-profit entity, or (ii) $25,000 per day if you are a for-profit entity.

Workplace Safety: It is understood that you have full responsibility for: (i) providing safe working conditions, as required by law, including compliance with all public health and occupational safety regulations and guidelines applicable to your business, and (ii) ensuring that safety plans exist for and safety related training is provided to our professional working on your premises. To ensure the safety of potentially vulnerable individuals on your premises, you agree not to permit our professionals to have unsupervised or unmonitored contact with (1) minors (2) adults who are under your care, custody or supervision because of mental health impairments.

Government Contracts: If this assignment is for work to be performed under a government contract or subcontract, you will notify us immediately (1) of any obligations in the government contract or subcontract relating to wages, and (2) if we are legally required to initiate E-Verify verification procedures for our professional.

Operation of Vehicles and Equipment: It is understood that we will not authorize our professional to operate machinery (other than office machines) or vehicles. If you wish to permit our professional to drive for business purposes, you accept sole responsibility for all liability, damages, injuries or other claims that may arise or be incurred as a result of driving. If you require our professional to drive a vehicle owned by you or an employee of your company, you agree to maintain such vehicle in good working condition and maintain all necessary and appropriate insurance for the operation of such vehicle. Under no circumstances will you permit our professional to make bank deposits; carry cash in excess of $100, negotiable instruments or other valuables while driving; or have passengers in the vehicle. It is agreed that you accept full responsibility for, and that we do not maintain insurance to cover any injury, damage, or loss that may result from your failure to comply with the foregoing.

Claims: It is understood that you are responsible for reporting any claim to us in writing during or within ninety (90) days after the assignment. Under no circumstance will Robert Half be responsible for any claim related to the assignment, including but not limited to work performed by our professional, unless you have reported such claim in writing to us within ninety (90) days after termination of the assignment.

Remote Work You may request that our professional provide services to you remotely (i.e., from a location other than your or your customer’s premises) using a laptop and/or other computer or telecommunications equipment provided by you or Robert Half (collectively, the “Equipment”). In such case, you acknowledge and agree that Robert Half shall have no control over, and you shall be solely responsible for, (i) the logical and physical performance, reliability and security of the Equipment or related devices, network accessibility and availability, software, services, tools and e-mail accounts (collectively, “Computer Systems”) used by our professional, and (ii) the security and integrity and backing up, of the data and other information stored therein or transmitted thereby. Moreover, you must not permit our professional to save or store any of your files or other data on the Computer System provided by us (including, but not limited to, any virtual desktop infrastructure solution). You agree that we shall not be liable for any loss, damage, expense, harm, business interruption or inconvenience resulting from the use of such Computer Systems.

Confidentiality Our professional will agree to execute any confidentiality agreement you may require. You are responsible for obtaining our

Page 27 of 363 ends

Branch Address Line 1, Branch Address Line 2, Branch Address Line 3 professional's signature.

You agree to hold in confidence the social security number and other legally protected personal information of our professional and to implement and maintain reasonable security procedures and practices to protect such information from unauthorized access, use, modification or disclosure.

Limitation on
Liability
We make no express or implied warranty, including, but not limited to, any warranty of quality, performance, merchantability or fitness for any purpose with respect to any services performed or any goods provided, including, but not limited to, financial or accounting services performed, or software developed, for you. Under no circumstances are we liable for any special, incidental, exemplary, indirect damages, lost profits or consequential damages (including, but not limited to, lost business, revenue, goodwill, or anticipated savings), even if informed of the possibility. Our liability, if any, will (in the aggregate for all claims, causes of action or damages) be limited to any actual direct damages up to an amount equal to the fees actually paid by you to us for the services that are the subject of the claim, regardless of the basis on which you are entitled to claim damages from us (including, but not limited to, fundamental breach, negligence, misrepresentation, or other contract or tort claim).

Insurance In addition to workers' compensation insurance for our professional, we also maintain commercial liability insurance.

No Contrary
Agreements
These General Conditions of Assignment contain the complete and final agreement on the topics they address, and they supersede any prior agreements or understandings on these topics. Any additional or different terms proposed by you, including terms within a purchase order, shall not be binding to modify these General Conditions of Assignment and Terms of Payment. Our professionals do not have authority either to verbally modify these General Conditions of Assignment or to assume additional responsibilities other than those set forth in these General Conditions of Assignment.

Job Order: Job Order # Date:

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Branch Address Line 1, Branch Address Line 2, Branch Address Line 3

TERMS OF PAYMENT
Thank you for your confidence in Robert Half. Our professional for this assignment of Functional Role is Candidate Name. The assignment will start on . As agreed, or otherwise communicated, we will invoice your firm at the rate of per hour. Should you wish to use our professional for other assignments, please let us know. The hourly billing rate may then change to reflect the experience necessary for the assignment. Call Robert Half for any changes in the assignment. We request a minimum thirty (30) days notice prior to ending any assignment.

The following Terms of Payment apply to this assignment:

Guarantee Robert Half guarantees your satisfaction with our professional's services by extending to you a one-day (8 hours) guarantee period. If, for any reason, you are dissatisfied with our professional, Robert Half will not charge for the first eight hours of work by the professional, provided that Robert Half is allowed to replace the professional. Unless you contact us before the end of the first eight hours guarantee period, you agree that our professional is satisfactory.

Time Report Our professional will submit a time report for verification and approval at the end of each week. Your approval thereby indicates your acknowledgement of the General Conditions of Assignment and these Terms of Payment. Our compensation to our professional is on a weekly basis, and you will be billed weekly for the total hours of work by the professional, including time spent completing, revising, and/or resubmitting a time report during business hours, and we ask that you respect those guidelines. Because Robert Half invoices reflect payroll we have already paid, our invoices are due upon receipt. Applicable sales and service taxes shall be added to these invoices. In the event that you fail to pay the invoice when due, you agree to pay all of our costs of collection, including reasonable attorneys' fees, whether or not legal action is initiated. Additionally, we may, at our option, charge interest on any overdue amounts at a rate of the lesser of 1 1/2% per month or the highest rate allowed by applicable law from the date the amount first became due.

Overtime Overtime will be billed at 1.50 times the normal billing rate. Overtime applies when hours of work by the professional exceed 40 hours per week (and in California exceed more than 8 hours in a day and as other state laws may require). If state law requires double time pay, the double time hours will be billed at 2.00 times the normal billing rate.

Hiring the
Person Referred
to You
After you evaluate the performance and potential of our professional, you may wish to employ this person directly. Our professionals represent our pool of skilled professionals and in the event, you wish them converted to your employ or another employer to whom you refer them, you agree to pay a conversion fee. The conversion fee is payable if you hire our professional, regardless of the employment classification, on either a full-time, temporary (including temporary assignments through another agency) or consulting basis within twelve months after the last day of the assignment. You also agree to pay a conversion fee if our professional is hired by (i) a subsidiary or other related company or business as a result of your referral of our professional to that company or (ii) one of your customers as a result of our professional providing services to that customer.

The conversion fee will equal 35% of the professional's aggregate annual compensation, including bonuses.

The conversion fee will be owed and invoiced upon your hiring of our professional, and payment is due upon receipt of this invoice. The same calculation will be used if you convert our professional on a part-time basis using the full-time equivalent salary.

Employment
Taxes and
Withholdings
Robert Half will handle, to the extent applicable, any workers' compensation insurance, federal, state and local withholding taxes and unemployment taxes, as well as social security, state disability insurance or other payroll charges.

General
Conditions
Robert Half may charge you a technology fee for the provision of equipment or technology, if you request that our professional use equipment or technology provided by us. Robert Half may also increase our rates provided under the Terms of Payment to reflect increases in our own costs of doing business, including costs associated with higher wages for workers and/or related tax, benefit and other costs. We will provide written or verbal notice of the technology fees and/or increase in our rates. Any increase in our rates will be prospective, starting as of the effective date Robert Half specifies.

A copy of the General Conditions of Assignment has been provided to you. We reserve the right to replace our professional.

Job Order: Job Order # Date:

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Personal & Confidential
CONTACT NAME Job Order Number: Job Order #

COMPANY NAME
STREET ADDRESS 1
STREET ADDRESS 2 OR CITY, ST ZIP

Please do not hesitate to contact us if you have any questions or we can be of additional service. We look forward to working with you.

Page 30 of 363 ends

lli] Robert Half
Branch Address Line 1, Branch Address Line 2, Branch Address Line 3

GENERAL CONDITIONS OF ENGAGEMENT-FULL-TIME ENGAGEMENT PROFESSIONAL Thank you for your confidence in Robert Half. The following General Conditions of Engagement and the enclosed Terms of Payment apply to this engagement.

Scope of
Engagement
Our professional is only authorized to perform work within the scope of the engagement. It is your responsibility to provide appropriate direction, guidance, or oversight to our professional for satisfactory performance on your engagement. You will not permit our professional to use computers or other electronic devices, software, services, tools, e-mail accounts or network equipment owned or licensed by our professional.

Client's
Responsibility
It is understood that you are responsible for implementing and maintaining usual, customary, and appropriate internal accounting procedures and controls, internal controls and other appropriate procedures and controls (including information technology, proprietary information, creative designs and trade secret safeguards) for your company and we shall not be responsible for any losses, liabilities or claims arising from the lack of such controls or procedures. Please notify us immediately if you require Robert Half to perform background checks or other placement screenings of our professional. We will conduct such checks or screenings for you only if they are described in a signed, written amendment to these General Conditions of Engagement.

Cash Handling and Other Financial Transaction and Activities: If you permit or allow our professional to sign, endorse, wire, transport or otherwise convey cash, securities, checks, or any negotiable instruments or valuables, or conduct financial transactions or other related activities, you accept sole responsibility for all claims, demands and liability that may arise from permitting these activities. You represent and warrant that to the extend you permit or allow our professional to engage in the activities described in this paragraph, you will not permit or allow our professional to handle more than (i) $1,000 per day if you are a non-profit entity, or (ii) $25,000 per day if you are a for-profit entity.

Workplace Safety: It is understood that you have full responsibility for: (i) providing safe working conditions, as required by law, including compliance with all public health and occupational safety regulations and guidelines applicable to your business, and (ii) ensuring that safety plans exist for, and safety related training is provided to our professional working on your premises. To ensure the safety of potentially vulnerable individuals on your premises, you agree not to permit our professionals to have unsupervised or unmonitored contact with (1) minors and (2) adults who are under your care, custody or supervision because of mental health impairments.

Government Contracts: If this engagement is for work to be performed under a government contract or subcontract, you will notify us immediately (1) of any obligations in the government contract or subcontract relating to wages, and (2) if we are legally required to initiate E-Verify verification procedures for our professional.

Claims: It is understood that you are responsible for reporting any claim to us in writing during or within ninety (90) days after the engagement. Under no circumstance will Robert Half be responsible for any claim related to the engagement, including but not limited to work performed by our professional, unless you have reported such claim in writing to us within ninety (90) days after termination of the engagement.

Confidentiality Our professional will agree to execute any confidentiality agreement you may require. You are responsible for obtaining our professional's signature.

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Branch Address Line 1, Branch Address Line 2, Branch Address Line 3 You agree to hold in confidence the social security number and other legally protected personal information of our professional and to implement and maintain reasonable security procedures and practices to protect such information from unauthorized access, use, modification or disclosure.

Insurance In addition to workers' compensation insurance for our professional, we also maintain commercial liability insurance.

No Contrary
Agreements
These General Conditions of Engagement contain the complete and final agreement on the topics they address, and they supersede any prior agreements or understandings on these topics. Any additional or different terms proposed by you, including terms within a purchase order, shall not be binding to modify these General Conditions of Engagement and Terms of Payment.

Our professionals do not have authority either to verbally modify these General Conditions of Engagement or to assume additional responsibilities other than those set forth in these General Conditions of Engagement.

Job Order: Job Order # Date:

Page 32 of 363 ends

Branch Address Line 1, Branch Address Line 2, Branch Address Line 3

FULL-TIME ENGAGEMENT PROFESSIONAL

TERMS OF PAYMENT
Thank you for your confidence in Robert Half. Our professional for this engagement of Functional Role is Candidate Name. The engagement will start on . As agreed, or otherwise communicated, we will invoice your firm at the rate of per hour. Should you wish to use our professional for other engagements, please let us know. The hourly billing rate may then change to reflect the experience necessary for the engagement. Call Robert Half for any changes in the engagement. We request a minimum thirty (30) days notice prior to ending any engagement.

The following Terms of Payment apply to this engagement:

Guarantee Robert Half guarantees your satisfaction with our professional's services by extending to you 37.5 hours guarantee period. If, for any reason, you are dissatisfied with our professional, Robert Half will not charge for the first 37.5 hours of work by the professional, provided that Robert Half is allowed to replace the professional. Unless you contact us before the end of the first

37.5 of work, you agree that our professional is satisfactory.

Because Robert Half invoices reflect payroll we have already paid, our invoices are due upon receipt. Applicable sales and service taxes shall be added to these invoices. In the event that you fail to pay the invoice when due, you agree to pay all of our costs of collection, including reasonable attorneys' fees, whether or not legal action is initiated. Additionally, we may, at our option, charge interest on any overdue amounts at a rate of the lesser of 1 1/2% per month or the highest rate allowed by applicable law from the date the amount first became due.

Overtime Overtime will be billed at 1.50 times the normal billing rate. Overtime applies when hours of work by the professional exceed 40 hours per week (and in California exceed more than 8 hours in a day as other state laws may require). If state law requires double time pay, the double time hours will be billed at 2.00 times the normal billing rate.

Hiring the
Person Referred
to You
Our professionals are full-time employees of Robert Half. You agree to seek our permission before you hire our Full-Time Engagement Professional, if permitted by applicable law. If you hire our Full-Time Engagement Professional, you agree to give us prompt notice. You also agree to pay a conversion fee if you hire our professional, regardless of the employment classification, on either a full-time, temporary (including temporary engagements through another agency) or consulting basis within twelve months after the last day of the engagement. You also agree to pay a conversion fee if our professional is hired by (i) a subsidiary or other related company or business as a result of your referral of our professional to that company or (ii) one of your customers as a result of our professional providing services to that customer.

The conversion fee will equal 50% of the professional's aggregate annual compensation, including bonuses.

A copy of the General Conditions of Engagement has been provided to you. We reserve the right to replace our professional.

Job Order: Job Order # Date:

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1 STAFF REPORT
AGENDA ITEM: Resolution Authorizing the City Manager to be the Agent of the Federal Land and Water Conservation Fund Grant In-Aid-Program for the RecPlex Park facility on 7th and C Streets.

MEETING DATE: July 1, 2025
PREPARED BY: Jacquelyn Benoit, Recreation Superintendent REVIEWED BY: Jose A Ramirez, City Manager
RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Adopt Resolution authorizing the submission of an application for the LWCF Grant Program to the California Department of Parks and Recreation for the creation of the Park at the Rec-Plex.

2. Authorize the City Manager or designee to execute all documents and be the Agent of the Federal Land and Water Conservation Fund Grant In-Aid-Program for the Rec-Plex Park facility on 7th and C Streets.

BACKGROUND AND DISCUSSION:

The California Department of Parks and Recreation administers LWCF grant program, and staff has identified the LWCF as a potential funding source for park’s development. The LWCF grants provide funding for the acquisition or development of land to create new outdoor recreation opportunities for the health and wellness of Californians. There is $35 million available statewide with a maximum request of $6 million. There is a 50% match requirement.

On November 19, 2025, the City Council approved a professional services agreement with California Consulting to perform ongoing grant writing services. More specifically, California Consulting was tasked with seeking out and writing grants to help the City acquire additional funds for the Rec-Plex Project. California Consulting would like us to pursue the Federal Land and Water Conservation Fund Grant In-Aid-Program to fund the park adjacent to the Rec-Plex building. This grant requires a match; however, Prop 68 monies will qualify as a match for this project. Other potential matches will be the park’s property value as well as any self-performing wages spent on the park.

The California State Department of Parks and Recreation will be responsible for the grant administration on behalf of the federal government. The city will agree that if funds are provided for the park the land must always remain a park. The city will also agree to the general provisions of the Grant Administration Guide as well as applicable federal, state, and local laws, ordinances, rules regulations, and guidelines.

The City Council, in accordance with the guidelines will appoint the City Manager as the agent to conduct all negotiations and execute and submit all documents, including but not limited tom applications, contracts, amendments, payment requests and compliance with all applicable current state and federal laws which may be necessary for the completion of the project.

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2 FISCAL IMPACT:

The City Council authorized a professional services agreement in the amount of $4,750 per month with California Consulting on November 9, 2024 for ongoing and city-wide grant writing services.

The funds for this professional services agreement were budgeted for the Fiscal Year 2024-25 and continue in FY 2025-26. If the grant applications are successful, staff has identified the Prop 68 as the matching funds. 50% Match Required, amount will be determined by the amount we are awarded. Grant consultant has identified $3.5 million as a realistic grant request. The City would be required to pay for the entire project upfront and then submit for reimbursement up to 50% of the project cost. State reimbursements usually take a month.

ATTACHMENTS:

Resolution

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RESOLUTION NO. 2025-

RESOLUTION AUTHORIZING THE CITY MANAGER TO BE THE AGENT OF THE

FEDERAL LAND AND WATER CONSERVATION FUND GRANT IN-AID-PROGRAM FOR THE “REC-PLEX” PARK FACILITY ON 7TH AND C STREETS.

WHEREAS, the Congress under Public Law 88-578 has authorized the establishment of a federal Land and Water Conservation Fund Grant-In-Aid program, providing matching funds to the State of California and its political subdivisions for acquiring lands and developing Facilities for public outdoor recreation purposes; and WHEREAS, the California Department of Parks and Recreation is responsible for administration of the program in the State, setting up necessary rules and procedures governing applications by local agencies under the program; and WHEREAS, the applicant, the City of Livingston, desires to certify by resolution the approval of the application and the availability of eligible matching funds prior to submission of the application to the State.

NOW, THEREFORE, BE RESOLVED that the City of Livingston hereby:

1. Approves the filing of an application for Land and Water Conservation Fund assistance for the proposed Livingston Rec Plex Project.

2. Certifies that the applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide.

3. Agrees to abide by 54 U.S.C. §200305(f)(3) which requires, “No property acquired or developed with assistance under this section shall, without the approval of the Secretary, be converted to other than public outdoor recreation use. The Secretary shall approve a conversion only if the Secretary finds it to be in accordance with the then-existing comprehensive statewide outdoor recreation plan and only on such conditions as the Secretary considers necessary to ensure the substitution of other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.”

4. Certifies that said agency has matching funds from eligible source(s) and can finance 100 percent of the project, which up to half may be reimbursed.

5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

6. Appoints the City Manager as agent of the applicant to conduct all negotiations and execute and submit all documents, including, but not limited to, applications, contracts, amendments, payment requests, and compliance with all applicable current state and federal laws which may be necessary for the completion of the aforementioned project.

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AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Jose A. Moran, Mayor
of City of Livingston
ATTEST
Monica Cisneros, Deputy City Clerk

APPROVED AS TO LEGAL FORM
________________________
Marc Barraza Tran, City Attorney

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STAFF REPORT
1 AGENDA ITEM: Adopt a Resolution Approving a Professional Services Agreement with Willdan Financial Services for a Water,
Wastewater, and Solid Waste Rates Study for an Amount
Not to Exceed $72,895.

MEETING DATE: July 1, 2025

PREPARED BY: Jose Antonio Ramirez, City Manager
REVIEWED BY: Jose Antonio Ramirez, City Manager
RECOMMENDATION:

Staff recommends that the City Council authorize the City Manager or designee to execute the contract for Professional Services with Willdan Financial Services.

BACKGROUND:

Utility Rate Studies are conducted every five (5) years to ensure the fiscal health of the Enterprise Funds (Water, Sewer, and Sanitation). In May 2019, the City Council selected Hansford Economic Consulting LLC to conduct the Utilities Rate Study. The results of the Rate Study were presented to the Council in December 2019. The Rate Study findings recommended increasing water and sewer rates starting on May 2020.

As part of the Prop 218 process, public notices were mailed to all utility customers, and a public hearing date was set for March 17, 2020. However, due to the outbreak of COVID-19, the public hearing was postponed until further notice.

The Rate Study uses historical data along with a comprehensive cluster of growth factors in order to project the funds’ needs at a certain time and for a certain period.

Given the current circumstances, the rate findings presented in December have become outdated and need to be recalculated.

On September 1, 2020, at the City’s Regular Council Meeting, staff was directed to update the utility rate study with a target implementation in the Spring 2021.

Hansford Economic Consulting existing contract was amended and approved by the City Council in June 2021. She recalculated the City’s utility rates within the timeframe requested by City Council.

DISCUSSION:

Utility rates must be studied on a routine basis to ensure that the utility enterprise funds are achieving sufficient revenue in the most equitable fashion, which enables the City to operate enterprise funds appropriately.

The City Council undertook a rate study, to analyze the revenue requirements and the rate structure that should be adopted, to proportionally allocate the costs of

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STAFF REPORT
2 providing water, wastewater and solid waste to city customers. The rate study was prepared by Hansford Economic Consulting Inc.

The proper notices were sent out on April 30, 2021, for all three services and public hearings were held with the proper legal parameters. The last rate increases from the adopted rates schedules went into effect on July 1, 2025. Rate studies of this nature are typically scheduled and deemed necessary every five (5) years. In 1996 California voters passed Proposition 218, “Right to Vote on Taxes Act”, which added articles into the California Constitution. Pursuant to Section 9-6-25 of the Livingston Municipal Code that provides for the setting of scheduled charges and fees, the City Council Adopted Resolution 2021-70 on November 4, 2021.

Staff received three (3) RFP proposals: Willdan Financial Services (WFS), HF&F Consulting (HF&F), and Bartle Wells Associates (BWA). All three firms have vast experience with the scope, data gathering, project management, revenue determination requirements, and financial methodology structures we are seeking.

HF&F has performed prior work for the City of Livingston and WFS is currently under contract with the City performing Community Facilities District (CFD) and Benefit Assessment District (BAD) services.

However, Willdan Financial Services (WFS) rates and pricing are very competitive and provide a great level of service. After extensive review and analysis by several department heads, staff are recommending WFS due to their lower cost, overarching experience, and current standing with the City.

FISCAL IMPACT:

The Fiscal Year 2025/2026 Operating Budget has sufficient funds, and will be allocated for this rate study. Work is anticipated to begin in Mid-July, 2025.

Appropriations from the Enterprise Funds (Water, Sewer, and Sanitation) will be used.

ATTACHMENTS

1. Adopt a Resolution Approving a Professional Services Agreement with Willdan Financial Services for a Water, Wastewater, and Solid Waste Rates Study for an Amount Not to Exceed $72,895.

2. Exhibit A to Resolution: Professional Services Agreement

3. Willdan Financial Servies Consulting Proposal

4. HF&H Consulting Proposal

5. Bartle Wells Associates Consulting Proposal

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RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE

CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH

WILLDAN FINANCIAL SERVICES FOR WATER, WASTEWATER AND SOLID WASTE RATES STUDY FOR AN AMOUNT NOT TO EXCEED $72,895.

WHEREAS, the last rate increases from the adopted rates schedules went into effect on July 1, 2025 for water, wastewater, and solid waste; and
WHEREAS, the City of Livingston (City) desires professional services to prepare new water, wastewater, and solid waste rates; and
WHEREAS, Willdan Financial Services (WFS) rates and pricing are very competitive and provide a great level of service; and
WHEREAS, following a competitive RFP process, WFS was selected due to their lower cost, overarching experience, and current standing with the City; and WHEREAS, WFS will provide a full range of services under this contract, including customized Excel financial models, tailored analysis, enterprise funds historical reviews, real-time financial modeling and interfacing with a great variety of stakeholders.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby authorizes the City Manager to enter into a five-year contract with Willdan Financial Services, attached hereto as Exhibit A, Professional Services Agreement.

I hereby certify that the foregoing Resolution No. 2025-___is a full, true, and correct copy of a resolution duly passed and adopted by the City Council of the City of Livingston at a regular meeting thereof duly held on the 1st day of July 2025, by the vote recorded as follows:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Jose A. Moran, Mayor
of City of Livingston
ATTEST
Monica Cisneros, Deputy City Clerk

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APPROVED AS TO LEGAL FORM
________________________
Marc Barazza Tran, City Attorney

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01424.0001/1017452.1 A-1

CITY OF LIVINGSTON

CONTRACT PROFESSIONAL SERVICES AGREEMENT
THIS CONTRACT PROFESSIONAL SERVICES AGREEMENT (herein “Agreement”) is made and entered into on July _______, 2025, by and between the CITY OF LIVINGSTON, a municipal corporation (“City”) and Willdan Financial Services (herein “Consultant”).

NOW, THEREFORE, the parties hereto agree as follows:

1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Consultant shall perform the work or services set forth in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by reference. Consultant warrants that it has the experience and ability to perform all work and services required hereunder and that it shall diligently perform such work and services in a professional and satisfactory manner.

1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction.

1.3 California Labor Law. If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by the Agreement.

1.5 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.

2. COMPENSATION

2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference, but not exceeding the maximum contract amount of $72,895 (Seventy-Two Thousand Eight Hundred Ninety-Five Dollars) (“Contract Sum”).

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2.2 Invoices. Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, and shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person.

City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, City will use its best efforts to cause Consultant to be paid within forty five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by the City of any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.3 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual cost of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum but not exceeding a total contract amount of Five Thousand Dollars ($5,000) or in the time to perform of up to ninety (90) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

3. PERFORMANCE SCHEDULE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding thirty (30) days cumulatively.

3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public

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enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section.

3.4 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding Five (5) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).

4. COORDINATION OF WORK

4.1 Representative of Consultant. Chris Fisher is hereby designated as being the representative of Consultant authorized to act on its behalf with respect to the work and services specified herein and make all decisions in connection therewith. All personnel of Consultant and any authorized agents shall be under the exclusive direction of the representative of Consultant. Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, and shall keep City informed of any changes.

4.2 Contract Officer. Jose A. Ramirez, City Manager [or such person as may be designated by the City Manager] is hereby designated as being the representative of the City authorized to act in its behalf with respect to the work and services specified herein and to make all decisions in connection therewith (“Contract Officer”).

4.3 Prohibition Against Subcontracting or Assignment. Consultant shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void.

4.4 Independent Consultant. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City, or that it is a member of a joint enterprise with City.

5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages. Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain,

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provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(c) Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
(e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.
(f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.

5.2 General Insurance Requirements.
(a) Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants.

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(c) Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(g) Enforcement of contract provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers

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shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.
(o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(p) Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

5.3 Indemnification. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or

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condition of this Agreement, except claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement.

6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services and shall keep such records for a period of three years following completion of the services hereunder. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records.

6.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement or as the Contract Officer shall require.

6.3 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than the City without prior written authorization from the Contract Officer.
(b) Consultant shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives the City notice of such court order or subpoena.
(c) If Consultant provides any information or work product in violation of this Agreement, then the City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct.
(d) Consultant shall promptly notify the City should Consultant be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. The City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with the City and to provide the City with the opportunity to review any response to discovery requests provided by Consultant.

6.4 Ownership of Documents. All studies, surveys, data, notes, computer files, reports, records, drawings, specifications, maps, designs, photographs, documents and other materials (the “documents and materials”) prepared by Consultant in the performance of this

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Agreement shall be the property of the City and shall be delivered to the City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by the City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder.

Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. section 101, such documents and materials are hereby deemed “works made for hire” for the City.

7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Monterey, State of California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Northern District of California.

7.2 Disputes; Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article.

7.3 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue any legal action under this Agreement.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

7.4 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Consultant reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically

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approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder, but not exceeding the compensation provided therefore in the Schedule of Compensation Exhibit “C”. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.

7.5 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

8. MISCELLANEOUS

8.1 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Consultant shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class

8.2 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.3 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Livingston, 1416 C Street, Livingston, CA 95334, and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement.

Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

8.4 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.

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8.5 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

8.6 Waiver. No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

8.7 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which any be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees, whether or not the matter proceeds to judgment.

8.8 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

8.9 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

8.10 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Consultant’s Authorized Initials _______

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8.11 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.
[Signatures On The Following Page]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY:

CITY OF LIVINGSTON, a municipal
corporation
Jose A. Ramirez, City Manager
ATTEST:

Monica Cisneros, City Clerk
APPROVED AS TO FORM:

BURKE, WILLIAMS AND

SORENSEN, LLP
Marc Barraza Tran, City Attorney
CONSULTANT:

WILLDAN FINANCIAL SERVICES
By:

Name:

Title:

By:

Name:

Title:

Address:

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EXHIBIT “A”

SCOPE OF SERVICES

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Water, Wastewater, & Solid Waste Rate Study 10
City of Livingston, CA
Scope of Work
The following proposed scope of work is intended to capture the goals and objectives of the City, and for brevity outlines the steps and work plans for the water, wastewater, and solid waste utilities. Willdan is confident the following will effectively meet the stated project objectives. A final scope and schedule will be determined following the selection of a consultant and based on further discussions with staff. Willdan’s work plan will culminate in the successful development of water, sewer and solid waste projections and rates for five years, an extended ten-year financial plan, and the education of staff and key stakeholders.

Project Initiation
Task 1.1 – Data Collection and Review
Task 1.1.1 – Data Collection. The City will be provided with an initial list of basic data needed to conduct the study.

The data request may include, but will not be limited to:
Financial and operating data (budgets, audits,
financial statements, cash balances, etc.);
Customer account and billing data;
Related reports prepared by others
(i.e., Master Plans, UWMP);
System operating data for the utilities;
Capital improvement programs, fixed asset records;
Bond statements, debt service schedules;
Ordinances, previous rate studies, City codes; and
City financial, debt and reserve policies.

Task 1.1.2 – Data Review. We propose to conduct initial data collection and review prior to the kick-off meeting to allow for a more meaningful discussion to occur. This will allow for our review of data in advance of the meeting so that we can request clarifications or follow-up information, as necessary. However, if the City’s preference is to conduct the kick-off prior to collecting data, we will accommodate that request. The data will be reviewed for completeness and to ensure a sufficient understanding of historical utility operations. The data collection and review process will be ongoing throughout the process as the need for additional information arises.

Task 1.2 – Kick-off Meeting and Planning Discussion
Task 1.2.1 – Project Kick-off. Following initial data collection and review, Willdan will conduct a kick-off meeting with City Staff. During this meeting we will discuss goals and objectives of the study, the schedule, constraints, or challenges that may be encountered, stakeholder considerations and objectives, and political concerns. Discussions may center around the following:
Review of previous rate studies and existing rate structure and areas where existing rates have been successful and/or specific areas of focus;
Review of recent financial performance for the utilities; Recent developments in tiered rates and effects of legal actions; Discussion of anticipated significant events (i.e., loss or gain of any major customers); Components to incorporate into the updated revenue requirements; such as capital improvements, debt repayment, reserves, annual repair and replacement, ongoing maintenance, cost of imported water, etc.; Conduct a detailed review of the data used in the baseline financial forecast; and Review and resolve (or develop a plan for resolving) data issues and questions.

For further efficiency and collaboration, the kick-off meeting will include a financial policy discussion. This will serve to address and document the City's financial policies for the utilities to be studied.

Topics of discussion may include:
Rate design approaches and alternatives;
Rate policy objectives;
City financial policies;
Reserve options and target levels (operating, debt
services, rate stabilization, repair, and replacement); Conservation objectives and rate options;
Capital Improvement Plan (CIP) financing options –
i.e., PAYGO vs. debt vs. grants;
Customer characteristics and classifications; and
Cost of service factors and Proposition 218.

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Water, Wastewater, & Solid Waste Rate Study 11
City of Livingston, CA
Water and Wastewater Rate Study
Task 2.1 – Development of Financial Model and Plan, Revenue Requirements and Rate Determinants The following sub tasks encompass the development of detailed historical customer and system analysis, creation of the comprehensive financial and cost-of-service rate model, formulation of cash flow projections of revenues and expenditures over five- and ten-year periods, and the calculation of the required revenue for the water and wastewater utilities, all of which will serve as the basis for recommendations for updated rates. The financial and rate model will provide detailed and comprehensive projections that will be used in the development of rates over the initial five-year period, and projections extended out to ten years for internal City planning.

Task 2.1.1 – Historical Billing Data Analysis. The data request document will provide instructions for the development of historical customer billing information. It is anticipated that the billing information will be provided in a format necessary to summarize the water and wastewater system accounts and billable flows by customer class for a recent historical period for which audited revenues exist. The customers and flows provide the basis on which operating revenues are derived and are therefore the primary factors utilized in reviewing the user rates and charges. As such, the historical billing data provides an important basis for analyses that will be used to develop assumptions for projecting revenues under existing and/or proposed rates.

Task 2.1.2 – Customer and Flow Projections. The water and wastewater accounts and billable flows will be forecasted for a five-year planning period. Such projections will be developed by considering historical growth trends, peak demands, local economic conditions, potential for adding/losing major utility customers, changes in customer class usage patterns over time, and experienced judgment. The billable flow projections will be based on the projected number of utility accounts and a usage per account analysis to differentiate the historical effects of account growth and increased (decreased) average usage by customer class.

Task 2.1.3 – Projected Revenues Under Existing Rates. Projections of utility system revenues under existing rates for the five-year planning period will be developed for water and sewer, recognizing projected accounts, flow volumes, and usage patterns by customer class (as determined in the billing analysis under the previous tasks).

Task 2.1.4 – Projected Revenue Requirements. Revenue requirements (i.e., system expenditures) will be developed for the utility systems based on an analysis of historical, currently budgeted, and anticipated operating and capital expenditures, with appropriate escalation factors applied. The revenue requirements will be projected on a fiscal year cash flow basis, considering expected operational changes, changes in staffing or operating expenditures for new facilities, system growth occurring from new development, anticipated extraordinary expenses, and allowances for inflation. The projections will include, but not be limited to, the following:
Operation and maintenance expenses;
Direct and indirect costs utilizing the cost allocation model currently in process for the City;
Outlay for annual capital additions and replacements; Debt service payments and coverage requirements
for existing and anticipated debt;
Funding of adequate and appropriate reserves; and
Other expenditures and transfers.

Task 2.1.5 – Projected Operating Results Based on Existing Rates. The projected revenues and revenue requirements will be summarized into a five and ten-year cash flow statement providing the projected operating results of the water and wastewater systems under the existing rates.

The cash flow statement will be used to estimate annual adjustments in utility revenues necessary to fund operating and capital expenditure requirements, meet existing bond covenant requirements, and maintain prudent utility
management practices. The estimated timing and
magnitude of future debt issues required, if any, to finance proposed capital improvements will also be shown.

Concurrent with the development of the projected operating results, the study will review the general financial health of the utility operations and, as necessary, make
recommendations for changes in fund balances, reserves, and debt service coverage ratios to maintain financial
integrity and a stable bond rating. The graphic
demonstrates the general rate study methodology and
major components of the rate process.

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-
- >--------+---+
Vi
Rate Design
Requirements
W w1LLDAN
Water, Wastewater, & Solid Waste Rate Study 12
City of Livingston, CA
Task 2.2 – Capital Plan Analysis
Task 2.2.1 – Review Capital Improvement Program (CIP) and Asset Replacement Schedules. The City’s existing utility system five-year CIP, master plans, and asset replacement schedules will be reviewed in conjunction with conversations with City Staff. The objective of such a review is to gain an understanding of the types of projects scheduled; the timing associated with such projects, associated expenditure requirements and the sources of funding each project.

Examining the impacts on the financial objectives of the water and wastewater utilities, as well as capital projects associated with rehabilitation and replacement of existing facilities, will be a key objective of not only this task but the entire project. The results of the financial plan will also help the City to prioritize projects identified within the CIP.

Task 2.2.2 – Develop Capital Needs Plan. Based on the findings made in the previous task and the Projected Operating Results described in Task

2.1.5, a plan will be developed to provide for the anticipated capital expenditure activities, including debt issuances, relative to the CIP. Such a plan will include consideration for the use of restricted and unrestricted funds, surplus operating reserves, capital recovery fees, and future rate adjustments. The analysis will also develop a projection of reserve fund balances and level of liquidity.

Task 2.2.3 – Capital Projects Model. The CIP will drive the future funding options and will directly impact rates.

Therefore, the rate analysis will incorporate the City’s current five-year CIP. The rate model will have the ability to run various CIP funding scenarios and quickly show the estimated impact on utility rates.

Since we are not serving as the financial/municipal advisor to the City for this project, we will rely on information relative to proposed debt or financing structures provided by the City or its designated financial/municipal advisor.

Task 2.3 – Cost-of-Service Allocations
Task 2.3.1 – Functional Cost Allocations. The analysis will allocate the Test Year revenue requirement (i.e., costs of providing service) to the various cost/rate components that constitute functional classifications of the types of service provided.

The functional cost allocations will evaluate such aspects as fixed costs, customerrelated costs and volumetric/usage related costs.

The evaluation of allocation factors associated
with applicable costs will be based on existing
rate structures applied by the City, meter size,
rate structures applied by other comparable
utility systems in the region, common industry
practice and standard rate-making principals.

Task 2.3.2 – Determination of Revenue Adequacy. Comparisons of revenues under the existing water and wastewater rates with the allocated costs of service will be evaluated in order to determine the degree of cost recovery by the various cost components, and to identify areas that may possibly require adjustments to align the revenues from each rate component with the allocated costs.

Task 2.4 – Rate Analysis and Design
Task 2.4.1 – Evaluation of Existing Rate Structures. The existing rate structures will be further evaluated for their effectiveness in equitably recovering costs of utility service from each customer class. The City’s current rate structure will be evaluated, and recommendations will be made for potential modifications to the current rates.

As part of the rate design process, Willdan will discuss with departmental staff the current trends and philosophies in utility ratemaking. Based on these discussions, the analysis will develop and recommend a rate design and philosophy that best meets the objectives of the City. The analysis model will be developed in a dynamic manner allowing the City to compare alternative annual incremental/phasing adjustments to achieve funding goals.

Basic standards for rate design accepted by the industry are:
Full Cost Recovery – rate revenue should provide sufficient income so that, when combined with other sources of funds, funding requirements for the system are covered including, all current long-term liabilities, debt obligations and future expansion-related and R&R-related capital needed to replace aging and infrastructure.

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Allocation of Revenue Requirements
Water System
• Avall.ablUty • Volumetric • Customer
W w1LLDAN
S14000,000
512,000,000
S10.000,000
$8000.000
$6 000,000
S4 000,000

52.000.000
Project ed Unrestricted Reserves
2020 2021 2022 2023
Allocation of Revenue Requirements
Wastewater System
$511.000
■ A-vall■ bUty • Volumetric • Custome-r
Water, Wastewater, & Solid Waste Rate Study 13
City of Livingston, CA
Fairness and Equity – based on cost responsibility as reflected in cost-of-service allocations, in accordance with industry standards.
Technically Defensible – apply industry proven standards and methodologies to help shield the City from potential legal challenges associated with the proposed utility rates. Resource Conservation – under conditions of scarcity, the pricing of water as a commodity should promote voluntary conservation, discourage unnecessary service use and extend the availability of supply. Administrative Efficiency – rates should be understandable to customers and efficiently administered by staff. Customer Acceptance – customers understand the rates, view them as fair, and consider them to be reasonable compared to other costs and other utilities.
Public Health and Welfare – rates are structured so that essential service usage is encouraged through affordability.

Task 2.4.2 – Rate Structure Alternatives. The rate model will be developed in a dynamic manner such that the Willdan Team and City Staff will be able to analyze “what if” scenarios detailing the financial impacts under each scenario utilizing an iterative dashboard view. Baseline rate structures will be recommended as required to fund the utility systems and consider annual inflationary indexed adjustments to rates as needed to maintain each utility. We will coordinate with City Staff to ensure suggested rate structures are compatible with the City’s utility billing software.

We will develop and assist the City in evaluating options for drought surcharges for the water utility. These surcharges could be implemented based on requirements of the City’s drought ordinances, to ensure the water utility is still able to generate sufficient revenue to cover its obligations under water restrictions that would likely reduce water sales.

Task 2.4.3 – Projected Operating Results Based on Proposed Rates. The proposed user rates and/or rate structures will be applied to the projected customers and flows in order to estimate the revenues to be generated from the proposed rates for the Test Year and the subsequent years of the projection period. The projected revenues will consider possible elasticity effects associated with changes in usage characteristics that may occur from revising the rate structure.

In addition, similar to the process described in Task 2.1, the five-year forecast will identify annual adjustments in utility system revenues necessary to meet existing bond covenant requirements, prudent management practices, and/or sound capital financing considerations.

Task 2.4.4 – Typical Bill Comparison. Comparisons of typical utility bills under the existing and proposed rates will be developed for each customer class under various levels of usage. The selected customer class usage levels will reflect the results of the billing analysis to better demonstrate rate impacts on typical customer accounts in each class.

Task 2.4.5 – Neighboring Utility Comparison. A comparison will be prepared to assess the difference between existing and proposed rates of the City with those of other comparable municipal utility systems in Merced County, or reasonable proximity.

Solid Waste Rate Study
The following section outlines the work tasks that will be executed to conduct the solid waste rate study.

Task 3.1 – Develop Revenue Requirements
The first task in conducting the solid waste cost of service analysis will be the development of the annual revenue requirements. This represents the total revenue that the Sanitation Fund (Fund 2103) will need to recover during the year to fund expenses associated with the provision of services. Willdan will work with City Staff to select a one-year period that reflects typical operations. We will then review financial data and work with City Staff to make adjustments to costs in order to be representative of a typical year.

Willdan will work with staff to project changes in costs due to inflation, salary increases, new equipment, new customers, etc. The result will be a five-year revenue requirement forecast.

Task 3.2 – Allocate Costs to Service Categories
Following the development of the revenue requirements, Willdan will assign and allocate costs to various service categories. The service categories represent the primary services provided by the Sanitation Fund. Utility 1 Existing Rates Utility 2 Utility 3 Utility 4 Proposed Rates Utility 5 Utility 6 Utility 7 Utility 8 Utility 9 Utility 10 Utility 11 Utility 12 $0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Comparison With Other Utility Systems
6,000 Gallons Per Month
Average of Other Utilities

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W w1LLDAN
T~ollJ 8ill Comp.airison
Combined Watt'I" and WHltwalt-r 8ill
·•~airtoNt"
Ylftllll ........ f/f~
t- uo.oo s»,_oo IJUO Mt.00 ~ HOM -M0.00 no.co H0.00
1 r-,,-.M 1 cw-.1 ..

Water, Wastewater, & Solid Waste Rate Study 14
City of Livingston, CA
Willdan will also identify and analyze direct costs within the solid waste utility’s adopted budget. The intent is to capture overhead, personnel, administrative and operational costs to ensure that applicable costs of service are being fully accounted for and are allocated amongst the customer classes in a fair and equitable manner.

Task 3.3 – Allocate Costs to Customer Classes
Once the allocation of costs has been identified by overall service categories, Willdan will group the service categories based upon the customer classes that will recover each category's costs.

Task 3.4 – Determination of Billing Units
Willdan will identify the appropriate billing units for each customer class, incorporating existing policies and formulas as appropriate, to ensure the updated rates provide sufficient cost recovery and follow the cost-of-service principles of Proposition 218.

Preparation of Reports and Proposition 218 Assistance
Task 4.1 – Reports, Model and Deliverables
Task 4.1.1 – Preliminary Draft Report. A draft report will be developed to address study findings and proposed recommendations. Contents will also include assumptions relied upon for the projection of customers and usage characteristics, revenue requirements, revenues, operating results, the cost recovery profile for each class, the results of the fully allocated cost of service analyses and any proposed adjustments to the utility rates. Upon completion, an electronic PDF copy and ten copies of the draft report will be provided to staff for review. The report and presentations will also include a comparison of the City’s current and proposed water and wastewater rates with five other public agencies.

Task 4.1.2 – Final Report. Based on comments received from staff and other participants during the presentation of the Preliminary Draft Report, the Final Report will be revised to incorporate the agreed upon changes. Upon completion, an electronic PDF copy and two (2) copies of the Final Rate Study Report will be provided to the City.

Task 4.1.3 – Rate Model. The financial rate model developed through the course of this study of the utilities, including the interactive dashboard, will be provided to the City for its unrestricted use. Our model is developed using Excel and will not contain any proprietary components. We will provide guidance and education on the use of the model, including how to incorporate updated financial information and data, such as budgets, fund balances, capital plans and cost escalators, and see the results and impacts on projected future rates. To the best extent possible and feasible, given limitations in long-term projections and the ability to effectively model them, we will work with the City to evaluate which factors to incorporate into the model, to allow the ability to develop projections over an extended 30 year timeline.

Task 4.2 – Proposition 218 Notice Preparation Assistance Task 4.2.1 – Proposition 218 Notices. We understand that the City intends to coordinate the printing and mailing of the required Prop 218 notice, however, based on our over 26-year history with Proposition 218 compliance, we can assist with the development of the notices by providing or assisting with notice content that will explain:
The purpose of the rates;
The reason for the increases;
How the rates are structured;
The date, time, and place of the public hearing; and
Details on what constitutes the existence of a majority protest, as it relates to the implementation of a new/increased utility rate structure.

Communicating Results - Presentations & Meetings
Task 5.1 – Meetings and Presentations
Task 5.1.1 – Project Kick-Off. As detailed in Task 1.2, a kick-off meeting will be scheduled with City Staff at the start of the project to discuss project requirements, finalize project scheduling/milestones and reporting requirements, and receive overall project direction. This discussion will provide the opportunity to review current utility rates, fees, charges, issues, and deficiencies with staff.

Task 5.1.2 – Project Progress Web Conferences. During the project, and prior to meetings with the City Council, team web conferences will be scheduled to present the progression of the analysis to staff in order to obtain input and feedback associated with any rate adjustments that may be presented. These web meetings will assist in the completion of rate design for the utility systems and guide the development of the draft report.

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W w1LLDAN
Water, Wastewater, & Solid Waste Rate Study 15
City of Livingston, CA
Task 5.1.3 – Public Outreach. As necessary, we will work with City Staff to develop a public outreach strategy, should communications beyond the Proposition 218 notice be required. We will also attend one (1) public outreach meeting if requested.

Task 5.1.4 – Draft Financial Plan Meeting. The results of the Preliminary Financial Plan and Revenue Requirements will be presented to staff for comment, feedback, and direction. We have also included provision for one (1) meeting with the City Council for a workshop, if necessary, prior to the presentation of the Final Report and setting of the Public Hearing date, and virtual 1 by 1 or 2 by 2 meetings with the Council if needed.

Task 5.1.5 – Draft Study/Final Report Meeting/Public Hearing. The draft report will be reviewed with City Staff to discuss findings and recommendations, gather feedback and address questions, then presented to the City Council. The results of the Final Report will be presented to the City Council during two (2) public City Council meetings, including the Public Hearing required by Proposition 218. Willdan’s project manager will be present to address any questions or concerns raised during the public hearings.

City Staff Support / Responsibilities
Willdan recommends that the City of Livingston assign a key individual as a project manager. As our analyses is developed, the City’s appointed project manager will: Coordinate responses to informational requests; Coordinate review of work products; and Identify appropriate staff members for participation in meetings and facilitate in scheduling.

We will ask for responses to initial information, follow-up requests and comments on reports within five business days or otherwise agreed upon timetable. If there are delays, the project manager will follow up with the parties involved to establish an estimated date for the delivery of information and/or feedback.

To ensure continued progression, the project manager will reconvene with the rest of the team to identify tasks that can be started while waiting for requested data.

Project Disclaimer
Willdan is a registered municipal advisory firm with the U.S. Securities and Exchange Commission (“SEC”), as such we are providing the following disclaimer representing that we are not acting as a Municipal Advisor (as defined by the SEC), to the City of Livingston, in any capacity as it relates to the project proposed in this Utility Rate Study RFP:
(i) The City uses the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

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W w1LLDAN
01424.0001/1017452.1 B-1
EXHIBIT “B”

SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)

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C-1
01424.0001/1017452.1
EXHIBIT “C”

SCHEDULE OF COMPENSATION

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City of Livingston, CA
Water, Wastewater, and
Solid Waste Rate Studies
Proposal for

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T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com 26 June 18, 2025
Mr. Happy Bains
Finance Director / Assistant City Manager
City of Livingston
1416 C Street
Livingston, CA 95334
Re: Fee Proposal to Conduct a Water, Wastewater, & Solid Waste Rate Study for the City of Livingston Dear Mr. Bains:

Willdan Financial Services (“Willdan”) is pleased to present the following fee proposal to the City of Livingston (“City”) for a Water, Wastewater, & Solid Waste Rate Study.

This submission reflects our understanding of the City’s Request for Proposal (RFP).

Willdan is excited about this opportunity to serve the City of Livingston. To discuss any aspect of our technical and/or fee proposal, please contact me directly at (951) 587-3528 or via e-mail at [email protected].

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director

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Water, Wastewater, & Solid Waste Rate Study 1
City of Livingston, CA
Fee Proposal
Water, Wastewater, and Solid Waste Rate Study
Based on our work plan provided in the scope of services, we propose a total fixed fee of $72,895. The table below provides a breakdown of these fees by task and project team member.

Notes
▪ If the City wishes for Willdan to attend additional in-person meetings, the fee is $1,850 per meeting. ▪ The City will be invoiced on a monthly percentage-completion basis. ▪ Invoices will include a description of services, as well as a summary of costs to date by task. ▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete our analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy, and that we will not be responsible for any errors that result from inaccurate data provided by the client or a third party. ▪ The City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to the City or relating to this project. Reimbursement shall be at Willdan's rates in effect at the time of such response.

C. Fisher
PIC/Project
Manager
J .McGarvey
Technical
Advisor
M. Cronan
Lead
Consultant
T. Sturms
Project
Analyst
$310 $300 $210 $150 Hours Cost
Task 1.1 -Data Collection, Review & Verification 0.5 4.0 6.0 6.0 16.5 $ 3,515 Task 1.2 -Kick-off Meeting & Planning Discussion 1.0 1.0 1.5 0.5 4.0 1,000 Task 2.1 -Financial Plan, Requirements & Determinants 6.0 0.5 40.0 20.0 66.5 13,410 Task 2.2 -Capital Plan Analysis 2.0 0.5 4.0 4.0 10.5 2,210 Task 2.3 -Cost-of-Service Allocations 2.0 0.5 6.0 4.0 12.5 2,630 Task 2.4 -Rate Analysis & Design 6.0 0.5 12.0 6.0 24.5 5,430 Task 3.1 -Financial Plan, Requirements & Determinants 2.0 6.0 12.0 16.0 36.0 7,340 Task 3.2 -Cost-of-Service Allocations (Service Categories) 1.0 3.0 4.0 6.0 14.0 2,950 Task 3.3 -Cost-of-Service Allocations (Customer Classes) 1.0 3.0 4.0 6.0 14.0 2,950 Task 3.4 -Determination of Billing Units/Rates 2.0 8.0 8.0 8.0 26.0 5,900 Task 4.1 -Reports, Model & Deliverables 6.0 4.0 22.0 24.0 56.0 11,280 Task 4.2 -Proposition 218 Notice Assistance 6.0 3.0 8.0 12.0 29.0 6,240 Task 5.1 -Meetings & Presentations 12.0 4.0 12.0 4.0 32.0 8,040 Total Labor Cost Proposal 47.5 38.0 139.5 116.5 341.5 $ 72,895 City of Livingston
Water, Wastewater, & Solid Waste Rate Study
Fee Proposal
Project Initiation
Preparation of Reports and Proposition 218 Notices
Communicating Results - Presentations & Meetings
Water & Wastewater Rate Study
Scope of Work
Total
Solid Waste Rate Study

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Water, Wastewater, & Solid Waste Rate Study 2
City of Livingston, CA
Hourly Rates
We will perform additional tasks, outside our scope of services, as requested and authorized by the City for an additional fee. Additional services may be authorized by the City and will be billed at our then-current hourly rates. Our current hourly rates are listed below.

Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate
Vice President / Director Chris Fisher $310
Managing Principal Jeffrey McGarvey $300
Principal Consultant $270
Senior Project Manager $250
Project Manager Michael Cronan $210
Senior Project Analyst Tiffany Sturms $150
Senior Analyst $135
Analyst II $120
Analyst I $110

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27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com

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D-1
01424.0001/1017452.1
EXHIBIT “D”

SCHEDULE OF PERFORMANCE

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Water, Wastewater, & Solid Waste Rate Study 16
City of Livingston, CA
Project ScheduleThe following outlines the estimated number of weeks to complete each task outlined in our scope of services. A specific project schedule will be developed following consultation with, and in concert with, City staff. 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 Task 1.1 –Data Collection & Review Task 1.2 –Kick-off Meeting & Planning DiscussionTask 2.1 –Financial Model and Plan, Revenue RequirementsTask 2.2 –Capital Plan AnalysisTask 2.3 –Cost-of-Service AllocationsTask 2.4 –Rate Analysis & Design Task 3.1 –Financial Model and Plan, Revenue RequirementsTask 3.2 –Cost-of-Service Allocations (Service Categories)Task 3.3 –Cost-of-Service Allocations (Customer Classes)Task 3.4 –Determination of Billing UnitsTask 4.1 –Reports, Model & DeliverablesTask 4.2 –Proposition 218 Notice AssistanceTask 5.1 –Meetings & Presentations Hold for Workshop City of Livingston
Water, Wastewater, & Solid Waste Rate Study
Timeline
Project InitiationScope of Work August September October November December January PH - Feb/Mar 2026
Final Rpt for PH
1st CC Mtg
Water & Wastewater Rate Study
February
Communicating Results - Presentations & MeetingsPreparation of Reports and Proposition 218 NoticesSolid Waste Rate Study

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City of Livingston, CA
Water, Wastewater, and
Solid Waste Rate Studies
Proposal for

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Water, Wastewater, & Solid Waste Rate Study i
City of Livingston, CA
Table of Contents
Table of Contents ................................................................................................................................................i Cover Letter...........................................................................................................................................................ii Minimum Experience Qualifications ........................................................................................................ 1 Background Experience.........................................................................................................................1 Utility Rate Project Experience..............................................................................................................3 Management/Method of Operations....................................................................................................... 4 Project Understanding............................................................................................................................4 Project Approach ....................................................................................................................................7 Project Methodology...............................................................................................................................7 Scope of Work .......................................................................................................................................10 Project Disclaimer.................................................................................................................................15 Project Schedule...................................................................................................................................16 References ...........................................................................................................................................................17 Corporate Structure/Organization...........................................................................................................19 Firm Profile ............................................................................................................................................19 Principal Staff........................................................................................................................................20 Chris Fisher............................................................................................................................................ 21 Jeffrey McGarvey ................................................................................................................................... 23 Michael Cronan ...................................................................................................................................... 24 Tiffany Sturms, MSA .............................................................................................................................. 25 Fee Proposal ............................................................................................................Under Separate Cover W

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w1LLDAN
T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com ii Cover Letter
June 18, 2025
Mr. Happy Bains
Finance Director / Assistant City Manager
City of Livingston
1416 C Street
Livingston, CA 95334
Re: Technical Proposal to Conduct a Water, Wastewater, & Solid Waste Rate Study for the City of Livingston Dear Mr. Bains:

Willdan Financial Services (“Willdan”) is pleased to submit the following proposal to conduct a Water, Wastewater, & Solid Waste Rate Study on behalf of the City of Livingston (“City”). We are excited at this opportunity to work with the City and possess extensive experience in all three areas of work requested, which ensures we are able to address the objectives identified in the RFP for this study. Team members assigned to the project team all have combined experience in water, wastewater and solid waste rate studies, and would work collectively on the three phases of the overall project, allowing for a seamless and cost-effective project approach.

Willdan has worked with several cities recently to address the need for significant rate increases, for a variety of reasons.

In some cases, rate increases were delayed during the period of the pandemic, in others increases were needed to address substantial capital project backlogs. These situations each required strategic approaches to developing financial scenarios and recommendations for evaluation and communicating results. This recent direct experience highlights our understanding of how to present results and recommendations with an emphasis on clearly explaining the underlying reasons to elected officials and other stakeholders, and just as importantly, with utmost sensitivity to the impacts on utility customers.

Willdan’s interactive approach will result in a customized Excel financial model, that the City will retain, and a focused and tailored analysis of the City’s current rates, revenues, capital project and operational expenditures, debt commitments, reserve funding, and other financial data. The culmination of our analysis will be a comprehensive financial management plan that develops projected system operating results for the next ten (10) fiscal years, and suggested rates for up to five (5) years. We will employ our proven interactive approach, supported with advanced financial modeling techniques, to develop a sophisticated and flexible financial model to help us guide the City through operating and financial scenarios, evaluate the impact of policy assumptions, and perform sensitivity analysis on utility rates and financial strategies.

Our ability to focus on the financial aspects of operating publicly owned utility systems is coupled with recognized leadership in strategic planning and operations and enables us to bring unmatched value to our clients. Our team brings a set of nationally recognized qualifications and experts that sets us apart. These qualifications include:

Recent Experience with Central Valley and Other Cities and Projects with Same Objectives as Livingston — Willdan has worked recently with numerous cities throughout the Central Valley and the State, on utility rate studies with objectives that closely mirror those outlined by the City and discussed above – analyzing the current financial plan for the utility, understanding the impact of capital projects and changing operations, and ensuring sufficient and stable funding for ongoing and projected needs. Through this work we have gained an understanding of Central Valley community dynamics, as well as utility operating characteristics. We recently completed successful comprehensive studies for the Cities of McFarland, Dinuba, Farmersville, Fillmore, Lakeport, Arvin, the McKinleyville Community Services District, and are currently working with the Cities of Ceres, Hemet, La Palma, Vacaville, Guadalupe, and Buellton with objectives and experience that relate closely to the goals of the City’s proposed study.

Unique Approach — Our approach to the development of utility rates has been carefully honed over the years. We will work collaboratively with City staff to carefully assess and understand the City’s unique utility system concerns and issues, clarify goals and objectives for the study, and develop a tailored approach that will best serve your needs. We do not use a “cookiecutter” approach, but rather bring a combination of planning and financial expertise providing a thorough understanding of utility operations and management.

Willdan will work with the City
to create new rate models that
provides the benefit of a fresh
approach and new perspectives.

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Mr. Happy Bains, Finance Director / Assistant City Manager City of Livingston
Proposal to Conduct a Water, Wastewater, & Solid Waste Rate Study June 18, 2025 | Page iii
A key to our approach is the use of a sophisticated and dynamic model and dashboard that allows us to quickly evaluate alternatives resulting from changes in assumptions and input variables, to address different policy and financial objectives.

This allows us to work collaboratively and transparently, to provide comprehensive business solutions. Our objective is to educate and inform throughout the process, not just at the completion of the project.

Unmatched Experience Developing and Implementing Utility Rates — Willdan is nationally recognized for its expertise in developing and implementing utility system financial planning, rate, and impact fee studies, and has extensive experience in California implementing Proposition 218 compliant rate structures.

Communicating the Results — Sound technical analysis is only one element of this process. It will be equally important to effectively communicate results and implications of the proposed rate structure to City staff, City Council, key stakeholders, and ultimately to those that will be subject to new rates.

Most of our projects incorporate significant community and/or stakeholder involvement and education efforts, and our experienced consultants are able to communicate complicated technical analysis in a manner that is easy to follow and understand.

The intuitive setup of our financial models allows Willdan to discuss and present critical information in a way that maximizes engagement and facilitates outreach. Our reports and presentations provide a solid understanding of the project and the rationale behind the development of the rates.

I, Chris Fisher, will serve as the primary contact person for this proposal; as an officer of the firm, I am authorized to negotiate and bind Willdan Financial Services. Provided in the table below is our legal name and contact information.

Willdan Financial Services
Proposal Contact
27368 Via Industria, Suite 200 | Temecula, CA 92590
Chris Fisher Vice President / Director
Tel#: (951) 587-3500 | Email: [email protected]
California Corporation | Established 1988
Willdan maintains exceptional experience in utility cost of service and rate design and is excited about this opportunity to use our skills and expertise to serve the City of Livingston.

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director

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COMPREHENSIVE. INNOVATIVE. TRUSTED. w
Water, Wastewater, & Solid Waste Rate Study 1
City of Livingston, CA
Minimum Experience Qualifications
Background Experience
For nearly three decades, Willdan team members have provided professional consulting services, which entail financial planning; rate and cost-of-service studies including wholesale analysis; alternative and feasibility analyses; and operational and management studies for water, reclaimed water, sewer, and solid waste, and stormwater utility clients across the United States.

Willdan team members are involved with the development of the rate-setting methodologies set forth in the American Water Works Association (AWWA) M1 manual “Principles of Water Rates, Fees and Charges,” and the AWWA M29 manual, “Water Utility Capital Financing.” Willdan is nationally recognized for its expertise with team members frequently being called upon to speak or instruct on utility financial matters, as subject matter experts, including at the AWWA Utility Management conference.

We are also deeply familiar with the procedural and substantive requirements of Proposition 218. Willdan staff (including Mr. Fisher, proposed as the principal-in-charge/project manager for this engagement) speak regularly to California industry groups such as the California Special Districts Association (CSDA) and the California Society of Municipal Finance Offices (CSMFO). Further, we recently completed a water and wastewater study for the City of Lakeport where the same team proposed for this engagement worked closely with a leading Proposition 218 law firm in the state to update their tiered water rate structure to be compliant with the requirements of Proposition 218 and the City of San Juan Capistrano decision. We will bring this recent experience and insight to the City of Livingston.

Willdan team members are experienced in a broad range of utility planning services and therefore understand the importance of an approach that integrates elements of utility planning, engineering, and finance. Willdan team members possess considerable experience in utility rate and cost-of-service studies and have performed these services for hundreds of utilities throughout the country. Our team includes staff with public sector experience spanning 30 years, and staff on the forefront of utility ratemaking and rate-modeling. In addition, team members have held positions as finance directors, deputy city managers, and auditors, and therefore understand the financial, operational, and political realities faced by governmental staff and management; we develop solutions that take these realities into account.

Willdan Financial Services
Utility Experience and Expertise
▪ Retail and wholesale rate studies
▪ Revenue sufficiency analyses
▪ Utility management and policy assistance
▪ Connection fee / tap fee studies
▪ Miscellaneous fee and charge studies
▪ Renewal and replacement sufficiency analyses
▪ Comprehensive alternatives analyses
▪ Capital project funding studies
▪ Interactive rate model development with dashboards
showing key performance indicators
▪ CIP financial scenario planning
▪ Rate ordinance drafting
▪ Billing system validation/rate testing
▪ Bond feasibility reports
▪ Valuation/divestiture studies
▪ Life Cycle Costs Analyses
Willdan will work with the City to identify and prioritize operational and fiscal objectives, and match these to specific rate attributes; and use this information throughout the engagement to develop a comprehensive financial plan and design utility rates that effectively meet these goals. The culmination of our analyses will be rate policies that guide the rate setting process, and a financial management plan that develops projected system operating results for the utility for the forecasted period. Willdan will employ its proven interactive approach, coupled with advanced financial modeling techniques to design rates and a financial plan that meet established goals and performance criteria. These modeling techniques serve as a powerful decision-making tool and provide the City with genuine business solutions and recommendations as to the strategic direction of its utilities.

During rate and financial planning projects we employ tools and techniques which focus on consensus building among stakeholders to ensure the team understands the future financial implications of current management decisions. Our extensive project expertise is bolstered by our unique interactive financial planning process and model.

At present Mr. Kevin Burnett,
a Willdan Principal Consultant, is
involved in the current update
to the M1 manual.

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Water, Wastewater, & Solid Waste Rate Study 2
City of Livingston, CA
Experience Map
A graphical representation of Willdan’s geographical client presence is depicted below of recent utility rate and financial projects completed within the last few years.

Staffing Capacity
Mr. Chris Fisher has been assigned to serve as the City’s representative; and has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous utility rate studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.

Project Availability
Each member of the project team currently has work in progress with other clients; the workload is at a manageable level with sufficient capacity to meet the needs of the City specific to the schedule and budget for this engagement.

The Financial Consulting Services group is made up of over 30 professionals who can be called upon as needed; we are confident that our team possesses the depth of experience that will successfully fulfill the desired work performance.

Willdan Group Inc. is composed of over 1,770 employees, including a cadre of public finance experts. If necessary, Mr. Fisher can recruit additional, qualified individuals from our employee roster to assist with the completion of this engagement to deliver the final materials on time and within budget.

We do not anticipate staffing changes during the course of the project, however, should the situation arise, any change in team members will be discussed and approved in concert with the City prior to the change being made.

It is important to note that Mr. Fisher
has been with Willdan for 26 years,
ensuring the City of Livingston of
continuity and dedication in staffing
during the completion of the project.

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INTERNATIONAL EXPERIENCE
Water, Wastewater, & Solid Waste Rate Study 3
City of Livingston, CA
Utility Rate Project Experience
Due to the proposal page limit, included herein is an abbreviated table of experience below outlines projects that are similar in nature to those requested conducted from the Temecula office in the previous several years.

Willdan Financial Services
Temecula Office | Utility Related Experience
Agency Project Project Team
City of Arvin, CA Sewer Rate Study and Cost Allocation Plan Chris Fisher, Michael Cronan and Tony Thrasher
City of Atwater, CA Solid Waste Rate Study Chris Fisher, Jeffrey McGarvey, and Kevin Burnett
City of Blythe, CA Water and Sewer Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
City of Buellton, CA Water and Sewer Rate and Connection Fee Study Chris Fisher, Jeffrey McGarvey, Michael Cronan, and Tiffany Sturms
City of Calexico, CA Water and Sewer Rate and
Connection Fee Study
Chris Fisher, Jeffrey McGarvey, Michael
Cronan, and Tiffany Sturms
City of Ceres, CA Water and Wastewater Utility Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
City of Claremont, CA Sewer Rate Study and Sanitation Rate Study Chris Fisher, Jeffrey McGarvey, and Kevin Burnett
City of Dinuba, CA Water, Sewer, & Solid Waste Rate Study Chris Fisher, Jeffrey McGarvey, and Kevin Burnett
City of Farmersville, CA Water and Wastewater Utility Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
City of Grover Beach, CA Water, Wastewater, and Stormwater Financial Plan and Utility Rate Study
Chris Fisher, Jeffrey McGarvey,
Kevin Burnett, and Michael Cronan
City of Guadalupe, CA Water and Sewer Rate Study Chris Fisher, Jeffrey McGarvey, Michael Cronan, and Tiffany Sturms
City of Hemet, CA Water and Sewer Rate Study Chris Fisher, Jeffrey McGarvey, Michael Cronan, and Tiffany Sturms
City of Hercules, CA Wastewater Financial Plan and
Connection Fee Study Chris Fisher and Michael Cronan
City of La Palma, CA Water and Sewer Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
City of Lakeport, CA Water and Sewer Rate Study, and
Connection Fee Study
Chris Fisher, Jeffrey McGarvey,
and Michael Cronan
City of Lomita, CA Water Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
City of McFarland, CA Water, Sewer, and Solid Waste Rate Study and Cost Allocation Plan
Chris Fisher, Jeffrey McGarvey, Michael
Cronan and Tony Thrasher
City of Norwalk, CA Water Rate Study Chris Fisher and Michael Cronan City of Pinole, CA Wastewater Rate and Fee Study Chris Fisher and Michael Cronan City of Richmond, CA Wastewater Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
City of Seaside, CA Water Rate and Capacity Fee Study Chris Fisher and Michael Cronan City of Soledad, CA Water Rate Study Consulting Services Chris Fisher, Jeffrey McGarvey, and Kevin Burnett
City of Stanton, CA Sewer Rate and Connection Fee Study Chris Fisher and Michael Cronan City of Vacaville, CA Water and Wastewater Rate Study Chris Fisher, Jeffrey McGarvey, and Michael Cronan
McKinleyville CSD, CA Water and Wastewater Rate and
Capacity Fee Study
Chris Fisher, Jeffrey McGarvey,
and Michael Cronan
Town of Apple Valley, CA Sewer Rate and Nexus Study Chris Fisher and Michael Cronan

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Water, Wastewater, & Solid Waste Rate Study 4
City of Livingston, CA
Management/Method of Operations
Project Understanding
The following project approach and scope of services is based on Willdan’s current understanding of the City of Livingston’s (“City”) need for a comprehensive utility rate study. We understand that the City is seeking proposals for assistance with Rate Studies for its Water, Wastewater and Solid Waste Utilities, including Community Engagement and Proposition 218 Support. The City’s primary objective is to ensure that these utilities have rates that provide adequate funding for current and future operations, maintenance, replacement and repair of aging or worn system components, capital projects, and debt service costs, while also establishing and maintaining healthy reserve levels. While this approach and scope is informed by our initial research, we will begin this project by working with the City to enhance our understanding of the City’s current financial situation and objectives through further research and data gathering and detailed discussions regarding your goals and priorities for this study.

As outlined below, through our review of City documents we have established an understanding of the City’s utilities, allowing us to engage quickly on our work for these important studies, focusing more time on meaningful analysis and guidance, rather than getting up to speed.

Enterprise Funds Historical Financial Review
In preparing our response to the City’s solicitation, Willdan reviewed the City’s Annual Comprehensive Financial Report (“ACFR”) and developed certain Key Performance Indicators (“KPIs”) for each of the three (3) major funds.

These KPIs are summarized below and consider such things as liquidity, operating margins, and debt management. It is important to note that, while this information was derived from the ACFR for each respective fiscal year, Willdan has not reviewed these analytics with City or with its financial advisor. Such a review may result in these metrics being revised.

The City maintains three (3) major enterprise funds:
▪ Water Enterprise Fund (Fund 2100) – accounts for the operation and maintenance of the City’s water treatment and water transmission and distribution systems;
▪ Domestic Wastewater Fund (Fund 2101) – accounts for the operation and maintenance of the City’s sewer system; ▪ Sanitation Fund (Fund 2103) – accounts for the operation and maintenance of the City’s sanitation system; The City provides water and wastewater services to approximately 4,000 residential, commercial, industrial, and institutional customers in the City. The City relies on groundwater to meet its water supply needs, with the municipal water system providing water from local aquifers via a series of eight (8) active groundwater wells. For wastewater, the City operates its own collection system and domestic wastewater treatment plant. Finally, for solid waste services, the City provides weekly collection services for residential, commercial, and industrial garbage, recyclable materials, and green waste collection to approximately 2,750 single-family residential units, 92 commercial dumpsters, one mobile home park, and 41 multi-family residential units. Waste collection services are contracted out with Gilton Solid Waste Management.

Current rates for water are a combination of base and meter charges, with a charge for volumetric consumption. Rates for wastewater consist of a fixed charge for residential and non-residential uses, and a variable charge for non-residential customers, Solid waste rates reflect varying amounts for different container sizes and customer types.

The Water and Wastewater Funds both have outstanding debt. The Water Fund has two SWRCB Loans and the Wastewater Fund has outstanding Sewer Revenue Refunding Bonds (2016A).

A review of recent ACFRs and adopted budgets provides an overview and insight into the recent results and projected financial condition of the three enterprises:
▪ Water Fund - For Fiscal Year (FY) ending June 30, 2023, operating revenues were $4.5M compared to expenses of $3.6M, for a positive operating result of $957K. For FY ending June 30, 2024, results were similar, with operating revenue of $4.29M and expenses of $4.03M, for positive result of $259K. Looking forward, the Adopted Budget projects positive operating results to continue, with revenues of $4.86M and expenses of $3.96M for FY 2024/25 and revenues of $5.3M and expenses of $4.6M for FY 2025/26. ▪ Domestic Wastewater Fund - For (FY) ending June 30, 2023, operating revenues were $3.37M compared to expenses of $2.99M, for a positive operating result of $379K. For the following FY (ending June 30, 2024) results were similar, with operating revenue of $2.95M compared to operating expenses of $2.72M, for a positive result of $227K. Based on the Adopted Budget operating results are projected to turn negative, with revenues of $3.3M for FY 2024/25 and expenses of $4.7M, the most significant cost being $1.885M for Improvements/Infrastructure. Another operating deficit of about $1M is projected for FY 2025/26, with another large line item for improvements/infrastructure.

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Water, Wastewater, & Solid Waste Rate Study 5
City of Livingston, CA
▪ Sanitation Fund - For Fiscal Year (FY) ending June 30, 2023, operating revenues were $1.8M compared to operating expenses of $1.7M, for a positive operating result of $77K. For FY ending June 30, 2024, results were slightly negative, with operating revenue of $2.1M compared to operating expenses of $2.2M, for a negative result of ($170K).

The FY 2024/25 Adopted Budget shows a slight deficit, with revenues of $2.3M and expenses of $2.9M. The FY 2025/26 Adopted Budget shows a similar projection, with revenues of $3M and expenses of $3.2M.

Following is a summary of selected other KPIs for each of the three funds:

Liquidity Indicators
Days Cash on Hand
This metric represents the number of days a fund can continue to pay its operating expenses with the current unrestricted cash it has available. It is an indication of a fund’s ability to continue to sustain operations should revenues decline or cease.
▪ Water Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 1,554 to 2,077 with an inclining trend. Assuming a target of 180 days, this metric has been strong in recent fiscal years. ▪ Domestic Wastewater Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 362 to 572 with a slightly declining trend. Assuming a target of 180 days, this metric has been strong in recent fiscal years. ▪ Sanitation Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 169 to 320 with a declining trend. Assuming a target of 180 days, this metric has been strong in recent fiscal years.

Operating Margin
Operating Ratio (Including Depreciation)
This metric measures whether the fund's revenues from sales are sufficient to cover the cost of operations (O&M) and depreciation, which is used here as a proxy for capital needs. ▪ Water Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 1.0 to 1.9 with a declining trend. Assuming a target of 1.0, this metric has weakened in recent fiscal years. ▪ Domestic Wastewater Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 1.0 to

2.2 with a slightly declining trend. Assuming a target of 1.0, this metric has weakened in recent fiscal years. ▪ Sanitation Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 0.9 to 1.0 with a declining trend. Assuming a target of 1.0, this metric has weakened in recent fiscal years.

Operating Ratio (Excluding Depreciation)
This calculation compares the fund’s total annual receipts to total annual payments. As an indication of financial health, the Fund should consistently generate more cash than it is spending. ▪ Water Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 1.3 to 2.3 with a declining trend. Assuming a target of 1.0, this metric has weakened in recent fiscal years. ▪ Domestic Wastewater Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 1.3 to

2.7 with a slightly declining trend. Assuming a target of 1.0, this metric has weakened in recent fiscal years. ▪ Sanitation Fund - For fiscal years 2020 through 2024, this metric has ranged from approximately 0.9 to 1.0 with a declining trend. Assuming a target of 1.0, this metric has weakened in recent fiscal years.

Summary – Operating Margin
The Water Fund and the Domestic Wastewater Fund have maintained positive operating margins for fiscal years 2020 through 2024. However, the Sanitation fund has generated negative operating margin in both fiscal years 2022 and 2024.

Additionally, the Sanitation Fund has generated negative cumulative cash flow over the last five (5) fiscal years.

Debt Management
Debt Service Coverage Ratio
This metric measures the Fund’s ability to cover its annual debt service obligations with operating income. For purposes of this analysis, this metric is calculated as total principal and interest paid relative to the net amount available for debt service.
▪ Water Fund - The debt service coverage ratio for fiscal years 2020 through 2024 has ranged from approximately

6.11 to 27.74 and has been declining. Assuming a target of 1.25, this would indicate a strong coverage ratio. ▪ Domestic Wastewater Fund - The debt service coverage ratio for fiscal years 2020 through 2024 has ranged from approximately 3.44 to 6.74 and has been declining. Assuming a target of 1.25, this would indicate a strong coverage ratio.

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Water, Wastewater, & Solid Waste Rate Study 6
City of Livingston, CA
▪ Sanitation Fund - The debt service coverage ratio for fiscal years 2020 through 2024 has ranged from approximately -6.48 to 8.77 and has been declining. Assuming a target of 1.25, this would indicate a strong coverage ratio.

Summary – Debt Management
For fiscal years FY2020 through FY2024, the Water Fund and the Domestic Wastewater Fund have maintained targeted debt service coverage ratios. As a result of negative cash flow, the Sanitation Fund appears to have experienced a negative debt service coverage ratio. Each fund currently has a manageable debt to asset ratio. However, the metric for the Sanitation Fund has increased significantly in recent years.

Project Objectives
The above-mentioned factors necessitate the need for a comprehensive review of the current rates and financial condition of each of the three utilities, and the development of a financial plan for the next five years focused on key financial objectives. Willdan will develop a comprehensive financial plan that includes provision for:
▪ Creation of a ‘baseline scenario’ incorporating City objectives, policy goals and guidelines and relevant historical data to help guide the evaluation of scenarios and alternatives throughout the project, and their impact on customer bills; ▪ Evaluation of funding options for modifications and capital improvements over the next five years, including well modifications for the Water Fund and projects necessary for NPDES compliance for the Wastewater Fund; ▪ Sufficient and stable revenue for operations and routine maintenance; ▪ Capital project costs;
▪ Anticipated and routine repair and replacement of existing aging collection infrastructure. ▪ Adequate debt service payments and coverage for existing and proposed future debt; ▪ Accumulation and maintenance of appropriate reserves (i.e., operating reserves for cash flow management, rate stabilization, emergencies, capital reservices, etc.);
▪ Cost increases through the projection period and term of recommended rates; and ▪ Functional cost-of-service analysis consistent with Proposition 218 and industry rate-making standards.

Through this study, we will help the City assess the financial health of each enterprise, identify cost recovery gaps, and develop a clear, equitable, and transparent rate structure that supports long-term infrastructure reinvestment and service delivery goals. Our approach begins with gaining a comprehensive understanding of the City’s operations, capital improvement needs, customer base, and financial position.

We will develop a comprehensive and detailed analysis of the utilities to ensure rates are able to generate sufficient revenue to meet the needs outlined above. Our approach and model incorporate a robust Capital Plan Analysis to ensure the utilities will be best equipped to address upcoming projects and their funding over the next five years, while maintaining required debt service coverage and appropriate reserve fund balances. Our objective is to provide Staff and the Council with the information it needs to understand water, wastewater, and solid waste utility current and projected financial conditions, understand key drivers behind recommendations, evaluate options for moving forward, and make informed decisions based on this process.

We will develop a five-year financial plan, model, and schedule of recommended rates and fees, with the financial model extended out to 10 years to provide long-term visibility of financial needs. We will also work with the City to provide a model for their use that can estimate revenue and costs, as well as resulting rate increases, over a longer time horizon, to the best extent possible given limitations in these types of projections and the ability to feasibly model them.

The project will entail three primary phases. The first is the review and evaluation of the previous rate study and development of objectives, development of a comprehensive financial plan for each utility, with projections for the next five years for the purposes of recommending rate adjustments extended out to ten years to provide a longer view of potential utility needs, particularly capital projects.

The purpose of the financial plan is to arrive at the required revenue for each utility, which serves as the basis for recommendations going forward, and the development of updated rates, if necessary. Then, once the results of the financial plan are reviewed with City staff, we will proceed with the cost-of-service analysis and development of rates, and preparation of a report.

This financial plan will serve as the basis for a full cost of service analysis and ultimately the development of recommendations for updated rates. The cost-of-service analysis will be conducted to ensure any new recommended rates comply with the requirements of Proposition 218, Proposition 26 and recent legal decisions.

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The financial plan will be created using a highly flexible and interactive model and dashboard that will allow us to work collaboratively with the City to present and evaluate different financial scenarios and quickly make changes in underlying assumptions based on feedback and discussions. Our goal will be to arrive at a financial plan that meets the City’s objectives, and that provides understanding and education to City staff and ultimately the Council, as they make decisions regarding the proposed rates.

Project Approach
The following project approach and scope of services is based on Willdan’s current understanding of the City of Livingston’s needs and objectives for Water, Wastewater, & Solid Waste Rate Study. While this approach and scope is informed by our initial research, we will begin this project by working with the City to complete this research and understanding of the City’s current financial situation and conducting meaningful discussions to more fully understand your objectives and priorities for this study.

Our objective is to provide Staff and the City Council with the information it needs to fully understand the utilities current and projected financial condition, evaluate options for moving forward, and make informed decisions based on this process.

The intent of the study is to independently evaluate the City’s current utility rates and develop an updated schedule of rates that are simple, equitable, and most importantly, structured to meet the future financial needs of the utilities. The proposed rate structure must adequately fund the ongoing operating, maintenance and capital improvement needs of the utilities.

For this project it will be critical to take a deeper look at the financial performance of the previous five years and project results forward, taking into account capital projects and anticipated debt, to evaluate the ability of current rates to provide sufficient revenue.

We will create a comprehensive financial plan and model that allows us to work with the City to evaluate and test alternatives and demonstrate the impact of capital and reserve funding scenarios and their associated impacts on overall financial performance.

The City wishes to undertake this study to review water and sewer rates from both a policy and analytical standpoint.

Willdan will prepare a comprehensive ten (10) year financial plan and analyses of rate alternatives; evaluate the current rate structure; and determine whether adjustments in the rates are necessary going forward. This analysis will include development of the financial plan and cost of service analysis necessary to arrive at informed recommendations and defensible Prop 218 compliant rates. We will also identify potential challenges and issues associated with implementing new rates, and work with the City to develop strategies to address these.

Project Methodology
As described herein, and detailed in our work plan, our approach to this water and sewer rate study is built around three primary objectives:

Primary Objectives
Working collaboratively with the
City of Livingston to develop the
comprehensive financial plan and
model for the utilities
Using the model to develop and
evaluate various rate, financial and
capital funding scenarios
Arriving at a final plan and set
of recommended rates that
have a clear and transparent
rationale and basis
We propose to conduct this process in a way in which staff and stakeholders gain understanding throughout the process of how the plan is developed, and how policy and financial decisions affect it, so that we can clearly communicate the process and results to the City Council and the community. The communication part of the process is critical in gaining acceptance and understanding of the broader community.

Div Description

GENERAL MANAGER DIVISION
2010 GENERAL MANAGER
2020 COMMUNICATIONS AND PUBLIC AFFAIRS
2030 HUMAN RESOURCES

ADMINISTRATIVE SERVICES DIVISION
3010 ADMINISTRATIV E SERV ICES
3020 FINANCE & ACCOUNTING
3030 CUSTOMER SERV ICE
3040 OFFICE SUPPORT
3050 PURCHASING
3060 METER OPERATIONS
3070 INFORMATION TECHNOLOGY

ENGINEERING & ENVIRONMENTAL SERVICES DIVISION
5010 ENV IRONMENTAL & ENGINEERING SERV ICES ADMINISTRATION 5020 SAFETY
5110 ENGINEERING DESIGN & CONSTRUCTION SUPERV ISION
5120 CIV IL & STRUCTURAL DESIGN
5140 CONSTRUCTION MANAGEMENT
5210 OPS SUPERV ISION
5220 ENGINEERING PLANNING
5250 WATER SYSTEM OPERATIONS
5310 ENGINEERING SUPPORT SUPERV ISION
Incorporates City’s
data and account
structure creating
transparency

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The culmination of the revenue requirements analysis, which will include a capital project financing plan, and cost of service allocations, will be alternative rate plans which will provide sufficient revenue to meet the ongoing funding needs of the system, while recovering costs from customers in a manner which is fair, equitable and within reasonable customer impact parameters.

We will develop a robust 10-year pro forma financial model to demonstrate the results of various analyses and aid detailed policy and education discussions with City staff and City Council. It will serve as the basis for developing rate structures that provide for long-term financial stability, reflect levels of service demand for different customer classes, and comply with the requirements of Proposition 218.

During this project, we will utilize our Microsoft Excel-based model, with its interactive dashboard, as a comprehensive financial tool to allow planning and evaluation of variable inputs and assumptions, thereby creating a thorough analysis of revenue requirements to address the City’s goal of ensuring predictable and stable revenue. This analysis is then seamlessly integrated with the rate development component of the model to demonstrate and project various rate design alternatives, and the effects they would have on the City’s financial outlook.

The model is used in meetings, in order to efficiently cycle through rate scenarios and establish the most viable rate plans for the City. During these interactive meetings, we invite City staff to participate in scenario planning / “what-if” sessions, where we use the dashboard to demonstrate and evaluate the financial/rate impact of alternative data (CIP, operating costs, etc.) and assumptions (interest rates, customer growth, cost escalation, etc.) in real-time to focus on the most critical drivers of the analysis. This ensures the resulting rate plan alternatives are viable from a financial, operational, managerial, and political perspective. To the extent revenues are not projected to be sufficient to meet requirements including operating expenses, debt service payments and coverage requirements, planned capital expenditures and targeted operating reserves, the model can be used to evaluate variable outcomes and alternatives, providing basis for meaningful discussions with elected officials and stakeholders well in advance of the actual rate increase process.

Real-Time Financial Modeling
The goal of financial forecasting is to provide clear vision regarding the potential financial outcomes of current management decisions, or just as importantly, potential decisions. Willdan’s approach helps the City staff mold the existing knowledge base into a viable financial management and capital financing plan.

Any model is only as effective as the expertise of those who develop it; our state-of-the-art financial modeling techniques allow us to incorporate our considerable experience by asking the correct questions, evaluating, and incorporating appropriate data, providing interactive consulting services, and evaluating multiple scenarios with the City in a real-time setting.

Because our interactive model will be populated with specific data from the City (i.e., division and account structure), each alternative reviewed in real-time during interactive meetings with the City can be done with a complete understanding of specific customer impacts. Further, our experience ensures that the data loaded into the model is vetted and validated, and that the baseline results from which forecasts are developed are fully understood from the beginning, so that more time is spent on evaluation of potential solutions, rather than questioning whether the underlying data and assumptions are correct.

Model Development as Part of the Consulting Process
The financial planning model will be designed with the following elements:
▪ Graphical dashboard to clearly show the results of various scenarios to the user; ▪ Easily reviewed and modified assumptions;
▪ Validated data tables generated from the City’s financial and operational information; and ▪ A powerful calculation engine.

The model will be “baselined” after an initial meeting with staff to ensure that we have the correct data and a basic understanding of the financial dynamics of your system. We will then conduct interactive financial planning sessions with the City staff.

After validating our data, calculation approach, and baseline assumptions, we will explore alternative scenarios, varying a number of assumptions and financial planning techniques including:
▪ Rate increase magnitude and timing;
▪ Alternative timing of capital projects;
▪ Alternative financing options (alternative combinations of pay-as-you-go, revenue bond debt and other debt, for example);

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▪ Alternative growth/demand forecasts and other “what if” analyses such as the impact of a loss of one or more service areas or significant customers; and
▪ Effect of increases in other sources of funds.

Given any combination of cost requirements (both operating and capital), non-rate sources of funds, and forecast assumptions, the Willdan team will work with the City to develop a financial plan that:
▪ Meets specified reserve targets;
▪ Addresses identified benchmarks or key performance indicators; ▪ Fully funds capital expenditures using specified financing techniques; and ▪ Meets legal, policy and contractual requirements that are financially measurable, such as debt service coverage on revenue bonds.

Subsequent to careful development and validation of the baseline forecast, a series of alternative forecasts will be prepared illustrating various results in the following general categories:
▪ What if things turn out differently? These alternatives will demonstrate the sensitivity of the forecast to the significant assumptions used. This results in a sound understanding of areas where a conservative forecast approach is warranted;
▪ What happens when we try this? This series of alternatives focuses on different financial management approaches. For example, the use of different financing techniques such as capitalized interest, interim short-term financing, and capital appreciation bonds may be explored; ▪ What can we do to make it better? This approach to forecasting identifies the factors that may be causing significant rate increases in a given year and explores alternatives. For example, if a large capital project in a single year is the culprit, we would work with staff and the consulting engineers to determine whether this project could be phased or delayed; and
▪ How will any adjustments affect our customers? In examining rate structure alternatives, we will demonstrate and discuss how users in various categories or classifications will be impacted. Our consultants will use our rate design model to explore the impact of various rate structures on bills for each customer class over the relevant consumption range.

Communication as Part of the Consulting Process
Willdan’s experienced professionals are accustomed to communicating with a variety of stakeholder groups, from management and staff, boards, and commissions, as well as the community. Our analytical and modeling approach will be customized to the City’s specific needs. As mentioned, the custom graphical interfaces imbedded in our models allow our consultants to easily track key performance metrics and work through alternative scenarios with the City staff and management. Features of the Excel-based analysis model include the ability to incorporate line-item data and assumptions that are then summarized in a graphic dashboard to show key financial indicators for the utility systems.

The sample dashboard below illustrates how we can summarize data, assumptions, and calculations into an easy-tounderstand graphical interface that updates with each alternative scenario evaluated. A copy of the final dashboard model will be provided to the City upon completion of the project.

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Scope of Work
The following proposed scope of work is intended to capture the goals and objectives of the City, and for brevity outlines the steps and work plans for the water, wastewater, and solid waste utilities. Willdan is confident the following will effectively meet the stated project objectives. A final scope and schedule will be determined following the selection of a consultant and based on further discussions with staff. Willdan’s work plan will culminate in the successful development of water, sewer and solid waste projections and rates for five years, an extended ten-year financial plan, and the education of staff and key stakeholders.

Project Initiation
Task 1.1 – Data Collection and Review
Task 1.1.1 – Data Collection. The City will be provided with an initial list of basic data needed to conduct the study.

The data request may include, but will not be limited to:
▪ Financial and operating data (budgets, audits,
financial statements, cash balances, etc.);
▪ Customer account and billing data;
▪ Related reports prepared by others
(i.e., Master Plans, UWMP);
▪ System operating data for the utilities;
▪ Capital improvement programs, fixed asset records;
▪ Bond statements, debt service schedules;
▪ Ordinances, previous rate studies, City codes; and
▪ City financial, debt and reserve policies.

Task 1.2 – Kick-off Meeting and Planning Discussion
Task 1.2.1 – Project Kick-off. Following initial data collection and review, Willdan will conduct a kick-off meeting with City Staff. During this meeting we will discuss goals and objectives of the study, the schedule, constraints, or challenges that may be encountered, stakeholder considerations and objectives, and political concerns. Discussions may center around the following:
▪ Review of previous rate studies and existing rate structure and areas where existing rates have been successful and/or specific areas of focus;
▪ Review of recent financial performance for the utilities; ▪ Recent developments in tiered rates and effects of legal actions; ▪ Discussion of anticipated significant events (i.e., loss or gain of any major customers); ▪ Components to incorporate into the updated revenue requirements; such as capital improvements, debt repayment, reserves, annual repair and replacement, ongoing maintenance, cost of imported water, etc.; ▪ Conduct a detailed review of the data used in the baseline financial forecast; and ▪ Review and resolve (or develop a plan for resolving) data issues and questions.

Topics of discussion may include:
▪ Rate design approaches and alternatives;
▪ Rate policy objectives;
▪ City financial policies;
▪ Reserve options and target levels (operating, debt
services, rate stabilization, repair, and replacement); ▪ Conservation objectives and rate options;
▪ Capital Improvement Plan (CIP) financing options –
i.e., PAYGO vs. debt vs. grants;
▪ Customer characteristics and classifications; and
▪ Cost of service factors and Proposition 218.

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Task 2.1.4 – Projected Revenue Requirements. Revenue requirements (i.e., system expenditures) will be developed for the utility systems based on an analysis of historical, currently budgeted, and anticipated operating and capital expenditures, with appropriate escalation factors applied. The revenue requirements will be projected on a fiscal year cash flow basis, considering expected operational changes, changes in staffing or operating expenditures for new facilities, system growth occurring from new development, anticipated extraordinary expenses, and allowances for inflation. The projections will include, but not be limited to, the following:
▪ Operation and maintenance expenses;
▪ Direct and indirect costs utilizing the cost allocation model currently in process for the City;
▪ Outlay for annual capital additions and replacements; ▪ Debt service payments and coverage requirements
for existing and anticipated debt;
▪ Funding of adequate and appropriate reserves; and
▪ Other expenditures and transfers.

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Rate Design
Requirements
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Task 2.2 – Capital Plan Analysis
Task 2.2.1 – Review Capital Improvement Program (CIP) and Asset Replacement Schedules. The City’s existing utility system five-year CIP, master plans, and asset replacement schedules will be reviewed in conjunction with conversations with City Staff. The objective of such a review is to gain an understanding of the types of projects scheduled; the timing associated with such projects, associated expenditure requirements and the sources of funding each project.

Task 2.2.2 – Develop Capital Needs Plan. Based on the findings made in the previous task and the Projected Operating Results described in Task

Task 2.2.3 – Capital Projects Model. The CIP will drive the future funding options and will directly impact rates.

The functional cost allocations will evaluate such aspects as fixed costs, customerrelated costs and volumetric/usage related costs.

Basic standards for rate design accepted by the industry are:
▪ Full Cost Recovery – rate revenue should provide sufficient income so that, when combined with other sources of funds, funding requirements for the system are covered including, all current long-term liabilities, debt obligations and future expansion-related and R&R-related capital needed to replace aging and infrastructure.

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Allocation of Revenue Requirements
Water System
• Av:11labil11y • Volurrc:1,,c • CU$1omer
W w1LLDAN
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Projected unrestricted Reserves
2020 2021 2022 2023
Allocation of Revenue Requirements
Wastewater System
$511,000
• A.Yi11ILabUty • Vo1umcttlc. • Customer
Water, Wastewater, & Solid Waste Rate Study 13
City of Livingston, CA
▪ Fairness and Equity – based on cost responsibility as reflected in cost-of-service allocations, in accordance with industry standards.
▪ Technically Defensible – apply industry proven standards and methodologies to help shield the City from potential legal challenges associated with the proposed utility rates. ▪ Resource Conservation – under conditions of scarcity, the pricing of water as a commodity should promote voluntary conservation, discourage unnecessary service use and extend the availability of supply. ▪ Administrative Efficiency – rates should be understandable to customers and efficiently administered by staff. ▪ Customer Acceptance – customers understand the rates, view them as fair, and consider them to be reasonable compared to other costs and other utilities.
▪ Public Health and Welfare – rates are structured so that essential service usage is encouraged through affordability.

Solid Waste Rate Study
The following section outlines the work tasks that will be executed to conduct the solid waste rate study.

Willdan will work with staff to project changes in costs due to inflation, salary increases, new equipment, new customers, etc. The result will be a five-year revenue requirement forecast.

Utility 1
Existing Rates
Utility 2
Utility 3
Utility 4
Proposed Rates
Utility 5
Utility 6
Utility 7
Utility 8
Utility 9
Utility 10
Utility 11
Utility 12
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Comparison With Other Utility Systems 6,000 Gallons Per Month Average of Other Utilities

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Combined Watt-r and W.11stt-walt-r 8ill
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Water, Wastewater, & Solid Waste Rate Study 14
City of Livingston, CA
Willdan will also identify and analyze direct costs within the solid waste utility’s adopted budget. The intent is to capture overhead, personnel, administrative and operational costs to ensure that applicable costs of service are being fully accounted for and are allocated amongst the customer classes in a fair and equitable manner.

Task 4.2 – Proposition 218 Notice Preparation Assistance Task 4.2.1 – Proposition 218 Notices. We understand that the City intends to coordinate the printing and mailing of the required Prop 218 notice, however, based on our over 26-year history with Proposition 218 compliance, we can assist with the development of the notices by providing or assisting with notice content that will explain:
▪ The purpose of the rates;
▪ The reason for the increases;
▪ How the rates are structured;
▪ The date, time, and place of the public hearing; and
▪ Details on what constitutes the existence of a majority protest, as it relates to the implementation of a new/increased utility rate structure.

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To ensure continued progression, the project manager will reconvene with the rest of the team to identify tasks that can be started while waiting for requested data.

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Project Schedule
The following outlines the estimated number of weeks to complete each task outlined in our scope of services. A specific project schedule will be developed following consultation with, and in concert with, City staff. 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 Task 1.1 –Data Collection & Review
Task 1.2 –Kick-off Meeting & Planning Discussion
Task 2.1 –Financial Model and Plan, Revenue Requirements Task 2.2 –Capital Plan Analysis
Task 2.3 –Cost-of-Service Allocations
Task 2.4 –Rate Analysis & Design
Task 3.1 –Financial Model and Plan, Revenue Requirements Task 3.2 –Cost-of-Service Allocations (Service Categories) Task 3.3 –Cost-of-Service Allocations (Customer Classes) Task 3.4 –Determination of Billing Units
Task 4.1 –Reports, Model & Deliverables
Task 4.2 –Proposition 218 Notice Assistance
Task 5.1 –Meetings & Presentations Hold for Workshop
City of Livingston
Water, Wastewater, & Solid Waste Rate Study
Timeline
Project Initiation
Scope of Work August September October November December January PH - Feb/Mar 2026
Final Rpt for PH
1st CC Mtg
Water & Wastewater Rate Study
February
Communicating Results - Presentations & Meetings
Preparation of Reports and Proposition 218 Notices
Solid Waste Rate Study

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References
Provided below are recent project descriptions, including client contact information, project team, and project hours that are similar in nature to those requested by the City.

City of Vacaville, CA
Water and Wastewater Utility Rate Study
Willdan is in the final stages of a two-year effort with the City of Vacaville to complete a comprehensive water and wastewater rate study. The City hadn’t increased rates for several years and sought guidance and development of alternatives to address a number of financial objectives, including completion of numerous capital projects, and ensuring funding for increasing costs of operation and maintenance for each system and designated reserve funds.

The study included the development of the above-mentioned alternatives that incorporated capital plan and reserve funding analysis for presentation, discussion and evaluation with City staff, and ultimately presentation to elected officials in small workshop sessions to solicit feedback and questions.

Finally, the recommended financial plan and proposed rate adjustments were presented to the City Council. The Public Hearing is scheduled for May 2025. Our work also included the development of all documents and reports, including the creating and executing the mailing of the required Proposition 218 notice.

Client Contact: Justen Cole, Director of Utilities
Tel #: (707) 469-6404 x124 | Email: [email protected] City of Farmersville, CA
Water and Wastewater Utility Rate Study
Willdan is currently concluding work on a comprehensive water and wastewater study for the City. The study is complete, the Prop 218 public hearing is scheduled, and notices have been mailed. Our team worked with City Staff to develop an interactive model with financial plans and projections for both utilities and prepare and present scenarios to evaluate budget and financial scenarios. We also worked with the City’s financial advisor and legal counsel to implement a rate stabilization reserve to allow more flexibility in the financial plan and mitigate rate increases. We developed capital funding scenarios and rate structure options and presented them to staff for discussion and evaluation. Once the final financial plan was approved, we completed the cost-of-service analysis and calculated new rates, prepared the rate study report and Prop 218 notice, presented the results to the City Council, and coordinated the mailing of the notice.

Willdan gathered and validated financial data for the project, including budget, fund balances, capital plans, historical financial results, debt service schedules and debt covenants, and financial policy documents. The study also included the cost-of-service analysis, as required under Prop 218, and changes were made to the rate structure as a result.

Client Contact: Steve Huntley, Director of Finance and Administration Tel #: (559) 747-0458 | Email: [email protected] City of Buellton, CA
Water, Sewer Rate and Connection Fee Study
Willdan is finalizing a comprehensive water and wastewater rate study and connection fee study for the City of Buellton.

All technical work and analysis has been completed, documents finalized and delivered, and the Prop 218 public hearing notices have been mailed. The only remaining task is the public hearing. The scope of services included development of the financial plan, model, and reports, including the adjustment of the existing rate structure to ensure better compliance with Prop 218. We created several alternative scenarios for evaluation by City staff and the Council and conducted 2-by-2 meetings with Council members to ensure their understanding of the process and the results.

Because of the time that had passed since their prior rate increases, the City needed significant rate increases to keep pace with rising costs, so we worked collaboratively with them to evaluate options for the financial plan to address the needs of the utilities, while balancing the impact on ratepayers.

This project is ongoing.

Client Contact: Rose Hess, Public Works Director
Tel #: (805) 686-0137 | Email: [email protected]

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City of Livingston, CA
City of McFarland, CA
Cost Allocation Plan and Utility Rate Study
Willdan worked with the City of McFarland to complete a utility rate study for its water, sewer, and solid waste enterprises along with a cost allocation plan. The study included the development of a comprehensive financial plan and model, and the evaluation of alternatives for funding operations and capital projects, and for recommended rate adjustments. The City had not increased its rates for several years, including the COVID period, and was facing increased costs of operations, needs for additional staffing, and multiple capital projects. We presented numerous alternative scenarios, with adjustments and changes based on feedback from City Staff.

Willdan gathered and validated financial data for the project, including budget, historical financial results, and capital plans, evaluated adjustments to the base water, sewer, and solid waste rate structures, prepared a comprehensive financial model, and presented alternatives and scenarios to City Staff. The updated rates were successfully adopted in December 2023.

Client Contact: Diego Viramontes, Finance Director
Tel #: (661) 792-3091 | Email: [email protected] City of Dinuba, CA
Water and Wastewater Utility Rate Study
Willdan worked with the City of Dinuba to complete a utility rate study for its water and wastewater enterprises. The study included the development of a comprehensive financial plan and model, and the evaluation of alternatives for rate adjustments. The City had not increased its rates for several years, including the COVID period, and was facing increased costs of operations, needs for additional staffing, and multiple capital projects. We presented numerous alternative scenarios, with adjustments and changes based on feedback from City Staff.

Willdan gathered and validated financial data for the project, including budget, historical financial results, and capital plans, evaluated adjustments to the base water and wastewater rate structures, prepared a comprehensive financial model, and presented alternatives and scenarios to City Staff. The updated rates were successfully adopted in September 2023.

Client Contact: George Avila, Interim Public Works Director Tel #: (559) 591-5924 | Email: [email protected]
City of Lakeport, CA
Water and Sewer Rate Study
Willdan assisted the City of Lakeport with the development of a water and wastewater utility rate study. The scope of services included development of the financial plan, model, and reports, including the adjustment of the tiered rate structure. The City was in the position of needing potentially significant rate increases, so we worked collaboratively with them throughout the process to evaluate options for the financial plan to address the needs of the utilities, while balancing the impact on ratepayers.

Willdan team members worked closely with the City’s Proposition 218 legal counsel to update the City’s water rate structure while ensuring compliance with the applicable provisions of the California Constitution, as well as the San Juan Capistrano court decision.

Client Contact: Nick Walker, Assistant City Manager, Finance Director Tel #: (707) 263-5615 x 301 | Email: [email protected]

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Corporate Structure/Organization
Firm Profile
Willdan Group, Inc. (WGI), was founded in 1964 as an
engineering firm working with local governments. Today, WGI is a publicly traded company (WLDN). WGI, through
its divisions, provides professional technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems, facilities, and
environment. The firm has pursued two primary service
objectives since its inception—ensuring the success of its clients and enhancing its communities.

A financially stable company, Willdan has approximately 1,770 employees working in more than 50 offices across
the U.S. Our employees include a number of nationally
recognized Subject Matter Experts for all areas related to the broadest definition of connected communities—four of whom are committed to contribute their expertise
throughout the duration of the City of Livingston’s
Water, Wastewater, and Solid Waste Rate Study
engagement.

We have solved economic, engineering and energy
challenges for local communities and delivered industryleading solutions that have transformed government and commerce. Today, Willdan is leading our clients into a
future accelerated by a change in resources, infrastructure, technology, regulations, and industry trends.

Willdan Financial Services
Willdan Financial Services, a California Corporation, is an operating division within Willdan Group, Inc. Willdan Financial Services, established on June 24, 1988, is a national firm and one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges.

Our staff of over 80 full-time employees support our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. Willdan assists local public agencies by providing the following services:

Willdan Financial Services
Services Provided
▪ Utility rate and cost of service studies;
▪ User fee studies;
▪ Cost allocation plan studies;
▪ Real estate economic analysis;
▪ Municipal advisory services;
▪ District administration services;
▪ Property tax audits;
▪ Economic development strategic plans;
▪ Development impact fee establishment and analysis;
▪ Tax increment finance district formation and
amendment;
▪ Feasibility studies;
▪ Housing development and implementation strategies;
▪ Arbitrage and continuing disclosure services;
▪ Debt issuance support; and
▪ Long-term financial plans and cash flow modeling.

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Experience
across
13 States 7 Countries
240+ + ++ ~.,l
Utility Rate Studies G ti 7 ~ • in the past 5 years ~ lrL LnJ ffl LJ t m LJ L u u l Members of
American
Water Works Association
AWWA
The Water
Environment
Federation
WEF
The WateReuse
Foundation
WRF
National
Association of Certified Valuators and Analysts
NACVA
DIVERSE LI 11 • • ir;, STAFF Project Financial Community CPA's Certified Managers Consultants Engagement Valuation
Experts Analyst
Water, Wastewater, & Solid Waste Rate Study 20
City of Livingston, CA
Principal Staff
Our management and supervision of the project team is very simple: fill every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected the following professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.

Organizational Chart
City of Livingston
Project Team
Key Team Member Project Role Responsibility to the Engagement Chris Fisher
Vice President/Director
Principal-in-Charge /
Project Manager
▪ Project and task oversight;
▪ Produce key elements of the analysis;
▪ Responsible for project deliverables;
▪ Model development;
▪ Stakeholder Outreach; and
▪ Meeting and presentation attendance.

Jeffrey McGarvey
Managing Principal
Quality Assurance/
Technical Advisor
▪ Quality assurance & control;
▪ Technical guidance; and
▪ Report evaluation.

Michael Cronan
Project Manager
Lead Consultant
▪ Collect, interpret, and analyze key data;
▪ Produce key elements of the analysis;
▪ Lead for model development and analysis;
▪ Report preparation; and
▪ Meeting and presentation attendance.

Tiffany Sturms, MSA
Senior Financial Analyst
Project Analyst
▪ Collect, coordinate, interpret, and analyze key data; ▪ Assistance with model development; and
▪ Report preparation.

Extensive Public Sector Experience
Willdan has delivered industry-leading financial, energy and engineering solutions that have transformed government and commerce for over 60 years. Willdan Financial Services advises governments throughout the United States and abroad about financial and economic consulting. We serve all levels of government and collaborate with government staff, constituents, developers, officials, and other professional services firms.

Our team recognizes the challenges local governments face in the current economic climate, and we have adapted our practice to support agencies' revised budget policies and public service priorities.

Resumes
Resumes for Willdan’s project team are presented on the following pages.

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Water, Wastewater, & Solid Waste Rate Study 21
City of Livingston, CA
Chris Fisher
Principal-in-Charge/Project Manager
Mr. Chris Fisher has been selected to serve as the principal-in-charge and project manager of the City’s engagement, due to his experience managing multi-disciplinary teams. He also possesses extensive knowledge specific to Proposition 218 compliance.

Mr. Fisher is a Willdan Financial Services Vice President and Financial Consulting Services Director.

With 26 years at Willdan, he has managed an array of financial consulting projects for public agencies throughout California, Arizona, Texas, Colorado, and Florida; coordinating the activities of resources within Willdan, as well as those from other firms working on these projects.

Select Relevant Experience
City of Buellton, CA — Water & Sewer Utility Rate Study: Mr. Fisher is serving in the role of principal-in-charge for the City’s comprehensive water and sewer rate study. The study is essentially complete, with all analytical work completed, reports and presentations delivered, and only the public hearing remaining. He oversaw the creation and refinement of the financial plan and rate model and presented the results to City Staff and the City Council. Two-by-two sessions were conducted with the Council members to educate them on the rate study process and results, since they didn’t have previous experience in this area. Responsibilities also included review of work progress, documents and deliverables throughout the project, creation of the Prop 218 public hearing notice, and quality control in all aspects of Willdan’s work for the City.

City of La Palma, CA — Water and Wastewater Utility Rate Study: Mr. Fisher served as the Project Manager for the City of La Palma’s last two water and wastewater utility rate studies. Both studies included a five-year model and financial plan that included a proposed five-year schedule of adjusted rates to ensure continued revenue sufficiency and stability.

City of Lomita, CA — Water Rate Study: Mr. Fisher was the assigned principal-in-charge for the City’s Water Rate Study. The study included detailed capital plan analysis, reserve analysis, and live evaluation of alternatives to mitigate necessary revenue and rate adjustments with a rate subcommittee as well as the City Council.

City of Calexico, CA — Water & Sewer Utility Rate Study: Mr. Fisher served in the role of principalin-charge of the City’s comprehensive water and sewer rate study. He led the development of the financial plan and model, and the rate analysis, and participated in the presentation of results to City Staff and the City Council. His responsibilities also included the scheduling of key meetings and deliverables, review of progress throughout the development of the project, and quality control.

City of McFarland, CA — Water, Sewer, and Solid Waste Rate Study and Cost Allocation Plan:

In the role of principal-in-charge, Mr. Fisher led the City’s Water, Sewer, and Solid Waste Rate Study and Cost Allocation Plan. Mr. Fisher oversaw the development of a comprehensive model and five year financial plan, required reports and documents, recommended rate updates, and presented results to the City management team and the City Council.

City of Lakeport, CA — Water and Wastewater Fee Study: Mr. Fisher led the engagement for Lakeport in the role of the principal-in-charge. The project included the completion of a comprehensive financial model, with multiple iterations and alternatives to address a situation where the City had not increased rates in several years. He led discussions with staff to outline the options and make adjustments, as necessary. He also worked closely with the City and its legal counsel to update rates and to incorporate tiers while ensuring compliance with Proposition 218 and the San Juan Capistrano Court decision.

City of Grover Beach, CA — Water and Wastewater Rate Study: In the role of principal-in-charge, Mr. Fisher led the City’s utility rate study, which included the preparation of a comprehensive financial plan, along with cost-of-service analysis and development of updated rates. The financial plan prepared contained various options and scenarios for City Staff’s consideration, including shifting from a uniform water rate structure to either a two- or three-tiered structure. The City’s utilities were in relatively good health, so major increases were not recommended.

Education
Bachelor of
Science, Finance;
San Francisco
State University
Areas of Expertise
Multi-disciplinary Team
Management
Special District
Formations
Cost of Service
Studies
Proposition 218
Utility Rate Studies
Affiliations
California Society of
Municipal Finance
Officers
Municipal Management
Association of
Northern California
California Municipal
Treasurers Association
26 Years’
Experience

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Water, Wastewater, & Solid Waste Rate Study 22
City of Livingston, CA
City of Claremont, CA — Sewer Rate Study: Mr. Fisher was the principal-in-charge for the City’s sewer rate study. The team generated multiple alternative rate structures for the City in preparation of updating their sewer utility rates and presented them to staff for their consideration.

City of Sebastopol, CA — Water and Wastewater Rate Study: Mr. Fisher led the City of Sebastopol engagement in the role of the principal-in-charge. The objective of the study was to update water and wastewater rates to address capital needs for both utilities, and ensure rates provided adequate funding for ongoing operations and maintenance. Project work included development of a comprehensive financial model and preparation of rate scenarios for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council and instructed staff on the use of the model.

City of Guadalupe, CA — Water and Sewer Utility Rate Study: Mr. Fisher served as the principalin-charge for the City’s recent water and sewer rate study, providing technical assistance throughout the project, conducting working discussions with City Staff to evaluate financial and rate options, and coordinating the project. He oversaw the development of the comprehensive financial plan, and preparation of rate alternatives and analysis. This engagement included the development of a comprehensive financial model and updated water and sewer rates, including identification of the rates of comparable jurisdictions and a comparative rate and cost analysis.

City of Richmond, CA — Wastewater Rate Study: Mr. Fisher led the City of Richmond engagement as the principal-in-charge. The objective of the study was to prepare a comprehensive financial plan and updated wastewater rates to address funding for capital and operating needs. The effort included development of a comprehensive financial model and report, and preparation of rate scenarios, including revised scenarios to address the impacts of the COVID pandemic, for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council, whereby rate increases were approved.

McKinleyville Community Services District, CA — Water and Wastewater Capacity Fee Study:

Mr. Fisher served as principal-in-charge of this project. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District’s service boundaries.

City of Twentynine Palms, CA — Sewer Treatment Facility Fair Share and Sewer Rate Analysis:

Mr. Fisher served as the Principal-in-Charge/Project Manager on the City of Twentynine Palms’ sewer treatment facility fair share analysis. The purpose of this analysis was to develop an allocation of costs associated with the completion of a wastewater treatment plant (and other related costs) project, in the downtown area of the City, as well as the development of specialized sewer rates who will be served by the new treatment plant. We developed a model and numerous scenarios for evaluation by the City, and presented results to the City Council.

C. Fisher
Resume Continued

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Water, Wastewater, & Solid Waste Rate Study 23
City of Livingston, CA
Education
Bachelor of Science,
Finance, University
of Central Florida
Areas of Expertise
Alternatives Analysis
Strategic Planning
Rate Studies
Cost of Service
Studies
Revenue Bonds
Feasibility Analyses
Capital Funding
Acquisitions
Valuation Analyses
Affiliations
American Water
Works Association
The Water
Environment
Federation
The Utility
Management
Conference
The WateReuse
Foundation
32 Years’ Experience
Jeffrey McGarvey
Technical Advisor/Quality Control
Mr. Jeffrey McGarvey is a Managing Principal and Vice President in Willdan’s Financial Consulting Services group. For 32 years he has provided professional consulting services to municipal water, wastewater, solid waste, electric, and natural gas utilities throughout the country. He possesses a broad range of municipal utility systems’ experience, including special expertise in complex alternatives analyses; utility rate analyses; utility valuations and acquisitions; regionalization and consolidation studies; debt issuance support, such as the preparation of financial feasibility analyses associated with revenue bond issuance; capital financing analyses; strategic planning; rate and regulatory assistance; and instituting financial mechanisms to provide the sufficient recovery of operating and capital costs.

Select Relevant Experience
City of Atwater, CA — Solid Waste Rate Study: Mr. McGarvey was the lead technical consultant for the completion of this recent study for the City. He led the development of the analysis and model, served as the solid waste technical expert, prepared study documents and presentations, and presented study results to City Staff and the City Council.

City of Claremont — Sanitation Rate Study: Mr. McGarvey was the lead technical consultant for the completion of this study for the City. He led the development of the analysis and model, served as the solid waste technical expert, prepared study documents and presentations, and presented study results to City Staff and the City Council.

McKinleyville Community Services District, CA — Water and Wastewater Capacity Fee Study:

Mr. McGarvey provided technical support, as well as quality assurance/quality control, to this engagement. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District boundaries. Finally, the team analyzed existing demand on the current utility systems and calculated remaining capacity in order to develop fair and equitable capacity fees.

City of Crescent City, CA — Water and Wastewater Rate and Capacity Fee Analysis: Willdan completed a water and wastewater rate and capacity fee analysis for the City of Crescent. The utility rates and fees calculated by Willdan will provide sufficient revenue to cover the repayment of a State Revolving Fund loan secured by the City to finance the costs of construction, ensure adequate funding for repair and periodic maintenance of the new and existing facilities, for ongoing operations, and routine maintenance. Mr. McGarvey provided technical guidance specific to the analysis of the water and wastewater financial models.

City of Flagstaff, AZ — Water, Wastewater and Reclaimed Water Rate Study: Mr. McGarvey served as the technical advisor of the City of Flagstaff’s utility rate analysis. In the wake of six water main breaks, the City was faced with decreasing revenues and increasing capital and operational costs. The proposed rates developed by Willdan reversed the City’s trajectory of a falling operating reserve and provide the City with sufficient revenue to cover existing and future operations, maintenance, and debt service; all while being financially prudent and responsive to the concerns of the City’s Water Commission. The proposed residential inclining block rate appropriately spreads the burden of increased costs based on a comprehensive analysis of customer demands.

City of Durango, CO — Water and Wastewater Rate Study: Mr. McGarvey led the preparation of a long-term financial plan, cost of service-based rates and updated plant investment fees. The City needs to perform $50 million in improvements to the wastewater treatment plant to comply with State wastewater treatment standards and to provide available capacity for new growth. A balanced financial plan was developed incorporating rate increases and anticipated debt to fully fund requirements and minimize customer impact.

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Water, Wastewater, & Solid Waste Rate Study 24
City of Livingston, CA
Education
Bachelor of Arts
and Science;
University of Central
Florida
Areas of Expertise
Utility Rate Studies
User Fee Studies
Financial Forecast
Modeling
8 Years’ Experience
Michael Cronan
Lead Consultant
Mr. Michael Cronan is a project manager with 8 years of experience within Willdan’s Financial Consulting Services group. His primary function is to support project managers and senior analysts with utility rate studies. He specializes in analysis for a variety of clients, including cities, water districts, and public utilities.

Select Relevant Experience
City of Buellton, CA — Water & Sewer Utility Rate Study: Mr. Cronan was the project manager and lead technical consultant for the City’s comprehensive water and sewer rate study. He led the collection and verification of data, creation of the model and financial analysis, development of alternative scenarios for evaluation by City staff and elected officials and completed the report and other critical documents. He also was responsible for creation of comprehensive customer and mailing databases.

City of Vacaville, CA — Water & Sewer Utility Rate Study: Mr. Cronan is the project manager and led the technical work and development of a comprehensive financial and rate model and multiple alternative financial plans for a Water and Sewer Rate Study for the City of Vacaville. All technical work for the study is concluded, reports have been submitted, the public hearing scheduled and the Prop 218 notices have been mailed. He collected and verified all data, led the development of the financial plan and model, including multiple scenarios to address different potential approaches to the City’s capital plan, prepared the report and participated in all meetings.

City of La Palma, CA — Water and Wastewater Utility Rate Study: Mr. Cronan was assigned to the La Palma engagement as the lead financial analyst. He worked directly with staff at the City to conduct financial analysis, which included the evaluation of alternatives for rate adjustments that incorporated different capital funding scenarios and operating budget assumptions, as well as the preparation of reports and Prop 218 documents. He was also instrumental in the development of the financial model.

City of Guadalupe, CA — Water and Wastewater Rate Study: Mr. Cronan provided analytical support for the City’s utility rate study. He was responsible for gathering and verifying data, as well as assisting with the development of the model. He also worked directly with City Staff to present results and options and develop alternatives.

City of Richmond, CA — Wastewater Rate Study: Mr. Cronan served as the project analyst and provided support for the City’s rate study. He gathered and verified data for the project manager and lead project consultant and played a significant role in the development of the customer database and financial model.

City of Lakeport, CA — Water and Sewer Rate Study: Mr. Cronan provided analytical support to the senior project team members and led the development of the financial model as the project analyst for the City’s ongoing utility rate study. He worked directly with staff at the City to evaluate financial plan alternatives, particularly for sewer where years of deferred rate increases, and a significant capital plan required careful consideration. He also led the revamp of the City’s cost-ofservice approach, working closely with a leading Prop 218 attorney, to ensure rates were compliant with State law.

McKinleyville Community Services District, CA — Water and Sewer Utility Rate Study: Willdan was retained to update the models, develop the CSD’s water and sewer rates and assist with the required Proposition 218 noticing process. Mr. Cronan provided analytical support to the project’s senior team and is providing the same support for the ongoing update to the previous study.

City and County of Denver, CO — Sanitary Sewer and Storm Drainage Benchmarking and Storm Drainage Impact Fee Study: Mr. Cronan served as the lead analyst on a benchmarking study to review and compare the City’s current rate structures to those of other front range and national utilities. The intent of the study was to identify potential areas for refinement to the City’s current rate structures. Mr. Cronan also served as the lead analyst for developing and implementing first time storm drainage impact fees for the City.

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Water, Wastewater, & Solid Waste Rate Study 25
City of Livingston, CA
Education
Master of Science
Accounting,
Indiana Wesleyan
University
Bachelor of Science,
Accounting,
Indiana Wesleyan
University
Areas of Expertise
Utility Rate Studies
Revenue Bonds
Capital & Financial
Planning
Impact/Connection
Fee Studies
Utility Valuations,
Assessment Programs
Utility Optimization
Services
7 Years’ Experience
Tiffany Sturms, MSA
Project Analyst
Ms. Sturms is a Senior Project Analyst within Willdan's Financial Consulting Services group. Her focal purpose is to assist principal consultants with utility rate and user fee studies, assessments/non-ad valorem studies, and other financial analyses. She is proficient with Microsoft Excel and has implemented vigorous analyses for a diversity of entities, including cities, counties, public service districts and investor-owned utilities.

Ms. Sturms has conducted an eclectic assortment of financial engagements, including credit default swaps (COVID-19 Pandemic, Sovereign Debt Crisis), mutual funds and hedge fund performance and style evaluations, investment strategies, leveraged portfolios, efficient frontier of optimal portfolios, constrained optimization, strategic analysis and recommendations, commercial banks ratio, liabilities/deposits, lending portfolio, non-interest income/expense, risk management, financing, and valuation analyses. Outlined below is Ms. Sturms' relevant and recent project experience.

Select Relevant Experience
Utility Rate Study Experience
▪ City of Buellton, CA (Water & Sewer Rate Study)
▪ City of Hercules, CA (Sewer Rate Study)
▪ City of Hemet, CA (Water & Sewer Rate Study)
▪ City of Guadalupe, CA (Water & Sewer Rate Study)
▪ City of Calexico, CA (Water & Sewer Rate Study)
▪ Bay Laurel Center CDD, FL (Water, Sewer & Reclaimed Rate Study and Misc. Charges) ▪ City of Oviedo, FL (Water, Sewer & Reclaimed Rate Study) ▪ City of Orange Beach, FL (Water & Sewer Rate Study)
▪ City of Ormond Beach, FL (Water & Sewer Rate Study)
▪ Bella Collina CDD, FL (Water & Sewer Rate Study)
▪ City of South Daytona, FL (Water, Sewer & Stormwater Rate Study) ▪ City of DeLand, FL (Stormwater Rate Study)
▪ Starr-Iva Water & Sewer District, SC (Water Rate Study) ▪ City of West Columbia, SC (Water & Sewer Rate Study)
▪ City of Aiken, SC (Water, Sewer & Stormwater Rate Study) ▪ City of Fort Mills, SC (Water & Sewer Rate Study)
▪ City of Brentwood, TN (Water & Sewer Rate Study)
▪ Town of Vienna, VA (Water & Sewer Rate Study)
Impact/Capacity Fee Studies
▪ Town of Lake Hamilton, FL (police, transportation, parks, municipal facilities) ▪ City of Gastonia, NC (water and sewer system development fee) ▪ City of Woodruff, SC (sewer system development fee)
Assessments
▪ City of North Port, FL (roads and drainage)
▪ City of Oviedo, FL (streetlights)
▪ City of Oviedo, FL (fire)

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W w1LLDAN
27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com

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w'wlLLDAN
OTY
City of Livingston, CA
Water, Wastewater, and
Solid Waste Rate Studies
Proposal for

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Willdan Financial Services (“Willdan”) is pleased to present the following fee proposal to the City of Livingston (“City”) for a Water, Wastewater, & Solid Waste Rate Study.

This submission reflects our understanding of the City’s Request for Proposal (RFP).

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director

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W w1LLDAN
27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com

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w'wlLLDAN
OTY

CITY OF

LIVINGSTON
Water, Wastewater, and Solid Waste Rate Study
Technical Proposal
June 20, 2025

Page 106 of 363 ends

= ; -;;. " ' ~ ~f{j 1l(//6 z
(;
HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
June 20, 2025
Happy Bains
Finance Director
City of Livingston
1416 C Street
Livingston, CA 95334
Subject: Water, Wastewater, and Solid Wate Study Proposal Dear Happy Bains,
Setting You Up for the Future
While there may be other consultants that also provide utility rate studies, none are as qualified as HF&H to assist the City. In light of Propositions 26 and 218, it is crucial for water, wastewater, and solid waste rates to be cost-based, reasonable, and equitable for all customer classes. We are particularly mindful of the administrative record that is called for in today’s litigious rate-making environment. Our cost-of-service rate models will clearly indicate how the revenue requirement is apportioned among the customer classes, which is a requirement under Proposition 218 in meeting the burden of proof.

New Water/Wastewater Legislation. California’s new Assembly Bill 2257 (AB 2257) introduces critical changes for local agencies navigating property-related water and sewer rates under Proposition 218. This legislation, signed into law in September 2024, establishes an “exhaustion of administrative remedies” procedure aimed at fostering transparency, reducing litigation risks, and enhancing trust between local agencies and their ratepayers. AB 2257 provides local agencies with several key advantages:
• Stronger Legal Defensibility: Agencies adhering to the outlined procedures can build a robust administrative record, minimizing vulnerabilities to legal challenges. • Greater Transparency: The bill requires clearer communication with ratepayers, fostering trust and informed participation in the decision-making process. • Operational Efficiency: By resolving disputes during the public process, agencies can avoid prolonged litigation that delays implementation of critical water and sewer projects.

However, these benefits come with responsibilities. Agencies must ensure compliance with the new requirements while effectively engaging their communities—a task that demands expertise in communication, record-keeping, and procedural design. Your HF&H team will guide the City through this process to provide the benefits afforded by following AB 2257.

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Happy Bains
June 20, 2025

Page 2 of 3 ends

HF&H Delivers the Public Support You Need
Public support is the key to a smooth and efficient rate adjustment.

Effective public outreach is crucial. Typically, the public is not necessarily interested in how the rates are calculated but what the rates are paying for and that their charges will be commensurate with the services they are receiving - nothing more, nothing less.

While our presentations provide a high-level overview of the “how” and the “what,” our reports provide greater detail for those who wish to dig deeper.

The Experience You Need
Long-term projection models aid financial decisions. The City’s capital improvement plans require careful consideration of many factors influencing the solid waste, water, and wastewater enterprises. We have recently built 30-year capital planning models to assist South Coast Water District and Union Sanitary District refine their capital infrastructure and funding requirements. Each model allows the user to update individual capital project costs and specify the financing terms (e.g., type of loan or bond, interest rate, duration of loan, and year payments begin). In addition, each model accounts for changes in rate revenue, growth of accounts, and adjustments in expenses over time. In turn, the model highlights reserve fund implications and debt coverage ratios for stakeholders’ consideration.

Our qualifications are described throughout our proposal, which we briefly highlight as follows:
• Firm Qualifications and References – We are a rate-making firm that specializes in setting rates in California and have been operating for more than three decades. We are not an engineering or accounting firm with other business interests. Our intent with each project is to promote a long-term relationship with each client. We are pleased by the level of recurring work we receive based on the relationships fostered from prior work. Do not hesitate to talk to our other references. They can help you understand the benefits of working with HF&H better than we can. (Refer to Section 1)
• Scope of Work – How we approach the City’s needs reflects decades of experience tailoring standard rate-making practices to the unique needs of our clients. The City conducted its last rate study for water, wastewater, and solid waste rates in 2021, before the significant inflationary period of the past few years. We can work with you to find the right plan to adjust rates to meet revenue sufficiency needs while balancing affordability. The City can count on our team for our neutrality when working with the City Council in public meetings. We can be depended upon for explanations that are based on industry practices rather than on politics alone. Successful implementation of recommended water, wastewater, and solid waste rates requires close coordination with City staff. Our work plan tasks address the Scope of Work included in the RFP.

The City’s anticipated schedule requires an efficient use of resources to ensure a public hearing can be held in May 2026 for all three utilities. Our proposed schedule accounts for two presentations to City Council, which will occur after the analysis has been vetted by City staff. Our schedule will be confirmed with the City at the outset of the project to ensure that it meets the City’s expectations. (Refer to Section 2) Our public meetings
are geared towards
helping the City
Council and public
understand, and
ultimately support,
the rate changes.

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Happy Bains
June 20, 2025

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• Corporate Structure and Organization –The City can expect to work with an experienced team capable of providing a thorough financial model and comprehensive study to assist in all of its rate-making needs. The City can rely on our team to be accessible and to deliver a solution tailored to its unique goals. Our project team includes the leadership and ratemaking experience of one of our firm’s partners, Rick Simonson. Collectively, our team has worked on numerous rate studies together, providing successful implementation of new rates to satisfied clients. (Refer to Section 3)
As an officer of the firm who is legally authorized
to contractually bind HF&H, we can state that our
proposal will be valid for 90 days. As requested
in the RFP, we certify that we did not receive any
addenda.

We appreciate this opportunity to provide our proposal and look forward to discussing it with you in detail.

Sincerely,
Rick Simonson
Senior Vice President
Authorized Signator
Rick Simonson, Senior Vice President
590 Ygnacio Valley Rd., Suite 105
Walnut Creek, CA 94596
[email protected]
(925) 977-9657

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Water, Wastewater, and Solid Waste Rate Study
Table of Contents, Figures, and Attachments
City of Livingston | June 20, 2025 | Page i

CONTENTS
SECTION 1. FIRM QUALIFICATIONS AND REFERENCES ..................... 1 Stanislaus County – Solid Waste Rate Study ............................................ 3 City of Bakersfield – Solid Waste and Sewer rate Studies........................... 3 City of Redwood City – Solid Waste, Water, and Sewer Rate Studies............ 4 SECTION 2. SCOPE OF WORK............................................................. 6 Approach............................................................................................. 6 Project Methodology and Management .................................................... 6 Understanding of Project Objectives........................................................ 7 Scope of Work...................................................................................... 7 Scope Exceptions and Limitations ......................................................... 13 Proposed Project Schedule................................................................... 13 SECTION 3. CORPORATE STRUCTURE & ORGANIZATION .................15 Organization ...................................................................................... 15 Personnel .......................................................................................... 15 Quality Control/Quality Assurance......................................................... 17 Support from City Staff ....................................................................... 17 Conflicts of Interest ............................................................................ 18

FIGURES
Figure 1-1. HF&H Rate Clients from Past Five Years .................................... 1 Figure 2-1: Proposed Project Schedule.................................................... 14 Figure 3-1: Project Organization Chart.................................................... 16

ATTACHMENTS
A. Staff Resumes

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Water, Wastewater, and Solid Waste Rate Study
Section 1. Firm Qualifications and References
City of Livingston | June 20, 2025 | Page 1 of 18
Section 1. Firm Qualifications and References
HF&H has provided leadership, expertise, independence, and support for hundreds of municipal agencies through over 2,500 engagements. Our reputation for excellent client service is well-established, as approximately 70% of our work comes from repeat clients, some of whom we have partnered with for other three decades. Our track record, measured by the number and types of engagements and repeat clients, demonstrates our ability to consistently deliver a high level of client satisfaction.

We have assembled one of the most accomplished
teams of consultants in the industry. Our partners and
senior managers possess 15 to 35 years of direct
experience in the consulting industry, serve on
professional association boards, have presented
numerous papers, and, in two cases, co-authored a
widely used industry manual on zero waste planning,
funding, and programming. Currently, three of our
employees serve as faculty for the CRRA and SWANA
“Zero Waste Principles and Practices Training,” which is a nationally recognized professional certification
program. Our team leverages proven management
and analytical tools to develop creative solutions that support our clients in achieving their objectives.

HF&H has extensive experience performing the services requested in the City’s Scope of Work.

In addition to working for numerous public agencies that are similar to or greater in size than the City, HF&H has supported the City previously with its procurement evaluation.

Figure 1-1. HF&H Rate Clients from Past Five Years
Client Water Wastewater Solid Waste
City of Beverly Hills X X X
City of Daly City X X X
City of Redwood City X X X
City of West Sacramento X X X
Town of Hillsborough X X X
Alameda County Water District X
Castro Valley Sanitary District X X
Central Contra Costa Solid Waste Authority X
City and County of San Francisco X
City of Alameda X
City of Bakersfield X X
City of Berkeley X
City of Brentwood X
City of Cupertino X
City of Del Mar X X
City of East Palo Alto X
City of Folsom X X
City of Foster City X
City of Fresno X
“Beyond your technical capabilities, I
wish to acknowledge the remarkable
qualities embodied by your team.

Throughout our engagements, HF&H
has exhibited not only
professionalism and diligence, but
also kindness, patience, and a
genuine collaborative spirit. Your
ability to navigate challenges with
clarity and composure has been
greatly valued and has contributed to
the success of our initiatives.”
~ Erin Rowland, Long Beach General
Superintendent of Administration

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Livingston City CouncilJuly 1, 2025

Livingston City Council
July 1, 2025