Agenda packet — Madera City Council, April 6, 2022 (part 2 of 2)

4. Future projects, beyond FY2030/31 are estimated at the average of rate-funded capital projects in FY 2020/21-2031/32.

Prepared by NBS
www.nbsgov.com | 800.676.7516
Exhibit 2 (CIP), 17 of 41
3/28/2022
CITY OF MADERA EXHIBIT 2

SEWER RATE STUDY
Capital Improvement Plan Expenditures
TABLE 17 : FORECASTING ASSUMPTIONS
Economic Variables FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26

0.00% 2.50% 2.50% 2.50% 2.50% 2.50%

1.00 1.03 1.05 1.08 1.10 1.13

5. Construction inflator is based on the most current 10 year average of the Engineering News-Record Construction Cost Index.

Source: www.enr.com/economics (August 2010 to August 2020).

Annual Construction Cost Inflation, Per Engineering
News Record
5 Cumulative Construction Cost Multiplier from FY
2020/21
Prepared by NBS
www.nbsgov.com | 800.676.7516
Exhibit 2 (CIP), 18 of 41
3/28/2022
CITY OF MADERA EXHIBIT 3

SEWER RATE STUDY
Debt Service
TABLE 18 : EXISTING DEBT OBLIGATIONS

CURRENT DISTRICT DEBT OBLIGATIONS
Annual Repayment Schedules: FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 2015 Wastewater Revenue Bonds ($28,8115,000)
1 Principal Payment 1,120,000 $ 1,165,000 $ 1,210,000 $ 1,250,000 $ 1,300,000 $ 1,350,000 $ Interest Payment 886,150 844,710 801,605 756,835 710,585 662,485 Subtotal: Annual Debt Service 2,006,150 $ 2,009,710 $ 2,011,605 $ 2,006,835 $ 2,010,585 $ 2,012,485 $ Coverage Requirement ($-Amnt above annual payment) 120% 120% 120% 120% 120% 120% Reserve Requirement - $ - $ - $ - $ - $ - $
2021 BBVA Loan ($10,000,000) - Refinanced
2 Principal Payment 331,996 $ 372,000 $ 379,000 $ 387,000 $ 395,000 $ 404,000 $ Interest Payment 196,592 150,626 142,443 133,213 123,790 114,162 Subtotal: Annual Debt Service 528,588 $ 522,626 $ 521,443 $ 520,213 $ 518,790 $ 518,162 $ Coverage Requirement ($-Amnt above annual payment) 120% 120% 120% 120% 120% 120% Reserve Requirement - $ - $ - $ - $ - $ - $

1. 2015 Wastewater Revenue Bonds refund the 2006 Wastewater Revenue Bonds. Source files: Wastewater_Refunding 2015 Amortization Schedule.pdf, Wastewater_Refunding 2015 2nd Install.pdf 2015 wastewater refunding bond is due to mature in 2036.

2. 2021 BBVA Loan issued 02/01/2021. Loan refinanced and prop 218 rate period debt service updated per City notes 05.05.21.

TABLE 19 : EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY SEWER RATES Existing Annual Debt Service 2,534,738 $ 2,532,336 $ 2,533,048 $ 2,527,048 $ 2,529,375 $ 2,530,647 $ Existing Annual Coverage Requirement 1.20 1.20 1.20 1.20 1.20 1.20 Existing Debt Reserve Target - $ - $ - $ - $ - $ - $
Prepared by NBS
www.nbsgov.com | 800.676.7516
Exhibit 3 (Debt), 19 of 41
CITY OF MADERA EXHIBIT 4

SEWER RATE STUDY
Projected Water Rates Under Existing Rate Schedule
TABLE 20 : CURRENT SEWER RATE SCHEDULE
Current Monthly Sewer Service Fee
1 FYE 2020
Residential Flat Rates
Monthly Fixed Charge $42.75
Multi-Residential Rates
Monthly Fixed Charge $27.77
Non-Residential Rates
Monthly Fixed Service Charge $19.02
Non Residential Discharge Rates
CAR DLR & Dept/Ret $2.30
Game $3.46
GROC/MOR $5.04
HOSP/CON $2.28
HOTEL/WO $2.28
LIB/CHUR $2.25
Lt. Manufacturing $3.51
PROF BLD $2.28
RESTAURANT $5.22
SCHOOLS $2.38
STRP/MAL $3.52
WRHSE $3.51
Non-Metered Non Residential Flat Rates
CAR DLR & Dept/Ret SEWER USE/BLDG/1000 $19.01
CAR SERV SEWER USE/BAYS $16.45
Game SEWER USE/BLDG/1000 $57.63
GROC/MOR SEWER USE/BLDG/1000 $33.80
HOSP/CON SEWER USE/BEDS $15.83
HOTEL/W SEWER USE/ROOMS $35.15
HOTEL/WO SEWER USE/ROOMS $20.59
LIB/CHUR SEWER USE/SEATING $0.50
OPN/AIR SEWER USE/SEATING $0.12
PROF BLD SEWER USE/BLDG/1000 $38.02
REST IN SEWER USE/SEATING $7.02
REST OUT SEWER USE/BLDG/1000 $70.22
SCHOOLS SEWER USE/STUDENTS $1.58
STRP/MAL SEWER USE/BLDG/1000 $41.16
WRHSE SEWER USE/BLDG/1000 $2.55
High Industrial User Rates
2 Rate per MG of Flow $1,234.50
Rate per 1,000 lbs. of BOD $410.00
Rate per 1,000 lbs. of TSS $340.00

1. Sewer rates for fiscal year ending 2020 are found in source file: 2142_001 Sewer Rates 2016-2020.pdf.

2. The City currently does not have high industrial users, however these will be the applicable charges.

Prepared by NBS
www.nbsgov.com | 800.676.7516
Exhibit 4 (Current Rates), 20 of 41
3/28/2022
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 21 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Sewer Fund

UTILITY BILLING & SEWER
Salaries & Benefits
Salaries/Full-Time 164,831 $ - $ - $ - $ 164,831 $ 0% 0% 0% 100% Salaries - Auto & Expense Allo. 79 - - - 79 0% 0% 0% 100% Public Employees Retirement 18,990 - - - 18,990 0% 0% 0% 100% Long Term Disability Insurance 560 - - - 560 0% 0% 0% 100% Life Insurance Premiums 210 - - - 210 0% 0% 0% 100%
Workers Compensation Insurance 14,456 - - - 14,456 0% 0% 0% 100% Medicare Tax - Employer's Share 2,378 - - - 2,378 0% 0% 0% 100% Unfunded Accrued Liability 29,669 - - - 29,669 0% 0% 0% 100% Deferred Comp/Full-Time 5,774 - - - 5,774 0% 0% 0% 100% Unemployment Insurance 620 - - - 620 0% 0% 0% 100%
Section 125 Benefit Allowance 47,031 - - - 47,031 0% 0% 0% 100% Subtotal 284,597 $ - $ - $ - $ 284,597 $
Materials & Services
Telephone & Fax Charges 4,631 $ - $ - $ - $ 4,631 $ 0% 0% 0% 100% Advertising/Bids & Notices 289 - - - 289 0% 0% 0% 100%
Office Supplies/Expendable 2,894 - - - 2,894 0% 0% 0% 100% Postage/Other Mailing Charge 23,153 - - - 23,153 0% 0% 0% 100% Vehicle Fuel, Supplies & Maintenance 434 - - - 434 0% 0% 0% 100% Contracted Services 17,364 - - - 17,364 0% 0% 0% 100%
Bank Service Charges 8,682 - - - 8,682 0% 0% 0% 100%
Conference/Training/Education 1,736 - - - 1,736 0% 0% 0% 100% Subtotal 59,184 $ - $ - $ - $ 59,184 $
Interfund Charges
Interfund Charges - Central Su. 2 $ - $ - $ - $ 2 $ 0% 0% 0% 100% Interfund Charges - Admin Overhead 19,977 - - - 19,977 0% 0% 0% 100% Interfund Charges - Computer Maintenance 16,606 - - - 16,606 0% 0% 0% 100% Interfund Charges - Computer Replace. 3,743 - - - 3,743 0% 0% 0% 100% Interfund Charges - Motor Rental 1,485 - - - 1,485 0% 0% 0% 100% Subtotal 41,813 $ - $ - $ - $ 41,813 $
Budget Categories
Total
Revenue
Flow Strength Customer Basis of Classification
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 21 of 41
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 22 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Sewer Fund
Special Payments
OPEB Obligation Expense 955 $ - $ - $ - $ 955 $ 0% 0% 0% 100% Pension Expense - GASB 68 42,315 - - - 42,315 0% 0% 0% 100% Subtotal 43,270 $ - $ - $ - $ 43,270 $
Capital Outlay
Vehicles & Equipment 355 $ - $ - $ - $ 355 $ 0% 0% 0% 100% Subtotal 355 $ - $ - $ - $ 355 $
Transfer Out
Transfer Out - Insurance Reserve 4,695 $ - $ - $ - $ 4,695 $ 0% 0% 0% 100% Subtotal 4,695 $ - $ - $ - $ 4,695 $
Sub-Total: Utility Billing and Sewer 433,914 $ - $ - $ - $ 433,914 $ 0% 0% 0% 100% Budget Categories
Total
Revenue
Flow Strength Customer Basis of Classification
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 22 of 41
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 23 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses Continued
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Sewer Fund

SEWER MAINTENANCE & OPERATIONS
Salaries & Benefits
Salaries/Full-Time 467,787 $ 187,115 $ 46,779 $ 46,779 $ 187,115 $ 40% 10% 10% 40% Salaries/Overtime 6,946 2,778 695 695 2,778 40% 10% 10% 40% Salaries - Uniform Pay 1,331 533 133 133 533 40% 10% 10% 40% Public Employees Retirement 63,850 25,540 6,385 6,385 25,540 40% 10% 10% 40% Long Term Disability Insurance 1,542 617 154 154 617 40% 10% 10% 40% Life Insurance Premiums 589 236 59 59 236 40% 10% 10% 40% Workers Compensation Insurance 45,146 18,058 4,515 4,515 18,058 40% 10% 10% 40% Medicare Tax - Employer's Share 7,279 2,912 728 728 2,912 40% 10% 10% 40% Unfunded Accrued Liability 104,114 41,646 10,411 10,411 41,646 40% 10% 10% 40% Deferred Comp/Full-Time 17,804 7,122 1,780 1,780 7,122 40% 10% 10% 40% Unemployment Insurance 1,981 792 198 198 792 40% 10% 10% 40% Section 125 Benefit Allowance 94,955 37,982 9,496 9,496 37,982 40% 10% 10% 40% Subtotal 813,325 $ 325,330 $ 81,333 $ 81,333 $ 325,330 $ Materials & Services
Gas & Electric Utilities 39,359 $ 15,744 $ 3,936 $ 3,936 $ 15,744 $ 40% 10% 10% 40% Telephone & Fax Charges 5,464 2,185 546 546 2,185 40% 10% 10% 40% Advertising/Bids & Notices 1,639 656 164 164 656 40% 10% 10% 40% Office Supplies/Expendable 3,278 1,311 328 328 1,311 40% 10% 10% 40% Vehicle Fuel, Supplies & Maintenance 21,416 8,566 2,142 2,142 8,566 40% 10% 10% 40% Contracted Services 27,318 10,927 2,732 2,732 10,927 40% 10% 10% 40% Taxes & Assessments 13,113 5,245 1,311 1,311 5,245 40% 10% 10% 40% Conference/Training/Education 4,699 1,879 470 470 1,879 40% 10% 10% 40% Maintenance/Other Supplies 65,564 26,225 6,556 6,556 26,225 40% 10% 10% 40% Subtotal 181,849 $ 72,740 $ 18,185 $ 18,185 $ 72,740 $
Budget Categories
Total
Revenue
Flow Strength Customer Basis of Classification
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 23 of 41
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 24 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses Continued
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Sewer Fund
Interfund Charges
Interfund Charges - Facility Maintenance 70,859 $ 28,344 $ 7,086 $ 7,086 $ 28,344 $ 40% 10% 10% 40% Interfund Charges - Central Su. 6,055 2,422 606 606 2,422 40% 10% 10% 40% Interfund Charges - Cost Distr. 112,903 45,161 11,290 11,290 45,161 40% 10% 10% 40% Interfund Charges - Admin Overhead 75,406 30,162 7,541 7,541 30,162 40% 10% 10% 40% Interfund Charges - Vehicle Replacement 95,025 38,010 9,503 9,503 38,010 40% 10% 10% 40% Interfund Charges - Vehicle Maintenance 48,931 19,572 4,893 4,893 19,572 40% 10% 10% 40% Interfund Charges - Computer Maintenance 28,277 11,311 2,828 2,828 11,311 40% 10% 10% 40% Interfund Charges - Computer Replace. 6,233 2,493 623 623 2,493 40% 10% 10% 40% Interfund Charges - Software 131 52 13 13 52 40% 10% 10% 40% Interfund Charges - Motor Rental 5,007 2,003 501 501 2,003 40% 10% 10% 40% Subtotal 448,827 $ 179,531 $ 44,883 $ 44,883 $ 179,531 $ Special Payments
Liability/Property Insurance 32,291 $ 12,916 $ 3,229 $ 3,229 $ 12,916 $ 40% 10% 10% 40% Retiree Insurance Premiums 2,308 923 231 231 923 40% 10% 10% 40% OPEB Obligation Expense 26,273 10,509 2,627 2,627 10,509 40% 10% 10% 40% Pension Expense - GASB 68 120,677 48,271 12,068 12,068 48,271 40% 10% 10% 40% Subtotal 181,549 $ 72,620 $ 18,155 $ 18,155 $ 72,620 $
Capital Outlay
Vehicles & Equipment 461 $ 369 $ 46 $ 46 $ - $ 80% 10% 10% 0% Subtotal 461 $ 369 $ 46 $ 46 $ - $
Transfer Out
Transfer Out - Insurance Reserve 14,001 $ 5,600 $ 1,400 $ 1,400 $ 5,600 $ 40% 10% 10% 40% Subtotal 14,001 $ 5,600 1,400 1,400 5,600
Sub-Total: Sewer Maintenance & Operations 1,640,013 $ 656,190 $ 164,001 $ 164,001 $ 655,821 $ 40% 10% 10% 40% Basis of Classification
Budget Categories
Total
Revenue
Flow Strength Customer
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 24 of 41
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 25 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses Continued
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Sewer Fund

WATER WASTE TREATMENT PLANT
Salaries & Benefits
Salaries/Full-Time 931,136 $ 186,227 $ 232,784 $ 232,784 $ 279,341 $ 20% 25% 25% 30% Salaries/Overtime 17,364 3,473 4,341 4,341 5,209 20% 25% 25% 30% Salaries - Uniform Pay 1,621 324 405 405 486 20% 25% 25% 30% Public Employees Retirement 110,231 22,046 27,558 27,558 33,069 20% 25% 25% 30% Long Term Disability Insurance 2,643 529 661 661 793 20% 25% 25% 30% Life Insurance Premiums 970 194 243 243 291 20% 25% 25% 30% Workers Compensation Insurance 90,201 18,040 22,550 22,550 27,060 20% 25% 25% 30% Medicare Tax - Employer's Share 14,360 2,872 3,590 3,590 4,308 20% 25% 25% 30% Unfunded Accrued Liability 162,190 32,438 40,548 40,548 48,657 20% 25% 25% 30% Deferred Comp/Full-Time 32,644 6,529 8,161 8,161 9,793 20% 25% 25% 30% Unemployment Insurance 3,039 608 760 760 912 20% 25% 25% 30% Section 125 Benefit Allowance 197,943 39,589 49,486 49,486 59,383 20% 25% 25% 30% Subtotal 1,564,343 $ 312,869 $ 391,086 $ 391,086 $ 469,303 $ Materials & Services
Gas & Electric Utilities 777,241 $ 155,448 $ 194,310 $ 194,310 $ 233,172 $ 20% 25% 25% 30% Telephone & Fax Charges 8,195 1,639 2,049 2,049 2,459 20% 25% 25% 30% Advertising/Other 13,670 2,734 3,418 3,418 4,101 20% 25% 25% 30% Office Supplies/Expendable 3,825 765 956 956 1,147 20% 25% 25% 30% Mileage Reimbursements 549 110 137 137 165 20% 25% 25% 30% Vehicle Fuel, Supplies & Maintenance 18,522 3,704 4,631 4,631 5,557 20% 25% 25% 30% Contracted Services 340,931 68,186 85,233 85,233 102,279 20% 25% 25% 30% Taxes & Assessments 44,802 8,960 11,200 11,200 13,441 20% 25% 25% 30% Conference/Training/Education 16,391 3,278 4,098 4,098 4,917 20% 25% 25% 30% Maintenance/Other Supplies 295,036 59,007 73,759 73,759 88,511 20% 25% 25% 30% Subtotal 1,519,161 $ 303,832 $ 379,790 $ 379,790 $ 455,748 $ Basis of Classification
Budget Categories
Total
Revenue
Flow Strength Customer
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 25 of 41
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 26 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses Continued
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Sewer Fund
Interfund Charges
Interfund Charges - Facility Maintenance 180,641 $ 36,128 $ 45,160 $ 45,160 $ 54,192 $ 20% 25% 25% 30% Interfund Charges - Central Su. 2,677 535 669 669 803 20% 25% 25% 30% Interfund Charges - Admin Overhead 365,815 73,163 91,454 91,454 109,745 20% 25% 25% 30% Interfund Charges - Vehicle Replacement 70,708 14,142 17,677 17,677 21,212 20% 25% 25% 30% Interfund Charges - Vehicle Maintenance 64,251 12,850 16,063 16,063 19,275 20% 25% 25% 30% Interfund Charges - Computer Maintenance 26,810 5,362 6,703 6,703 8,043 20% 25% 25% 30% Interfund Charges - Computer Replace. 5,821 1,164 1,455 1,455 1,746 20% 25% 25% 30% Interfund Charges - Software 782 156 196 196 235 20% 25% 25% 30% Subtotal 717,505 $ 143,501 $ 179,376 $ 179,376 $ 215,252 $ Special Payments
Liability/Property Insurance 354,001 $ 70,800 $ 88,500 $ 88,500 $ 106,200 $ 20% 25% 25% 30% OPEB Obligation Expense 33,196 6,639 8,299 8,299 9,959 20% 25% 25% 30% Pension Expense - GASB 68 218,160 43,632 54,540 54,540 65,448 20% 25% 25% 30% Subtotal 605,357 $ 121,071 $ 151,339 $ 151,339 $ 181,607 $ Capital Outlay
Vehicles & Equipment 14,532 2,906 3,633 3,633 4,360 20% 25% 25% 30% Subtotal 14,532 $ 2,906 $ 3,633 $ 3,633 $ 4,360 $
Transfer Out
Transfer Out - Insurance Reserve 26,269 $ 5,254 $ 6,567 $ 6,567 $ 7,881 $ 20% 25% 25% 30% Subtotal 26,269 $ 5,254 $ 6,567 $ 6,567 $ 7,881 $
Sub-Total: Water Waste Treatment Plant 4,447,167 $ 889,433 $ 1,111,792 $ 1,111,792 $ 1,334,150 $ 20% 25% 25% 30% Total Operating Expense 6,521,094 $ 1,545,623 $ 1,275,793 $ 1,275,793 $ 2,423,885 $ 23.7% 19.6% 19.6% 37.2% Budget Categories
Total
Revenue
Flow Strength Customer Basis of Classification
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 26 of 41
CITY OF MADERA Function & Classification

SEWER RATE STUDY
Cost of Service Analysis
TABLE 27 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses Continued
1 FY 2023/24 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Debt Services
Existing Debt Service 2,527,048 $ 598,958 $ 494,394 $ 494,394 $ 939,301 $ 24% 20% 20% 37% New Debt Service - - - - - 24% 20% 20% 37%
Capital Expenditures
Rate-Funded Capital Expenses - $ - $ - $ - $ - $ 24% 20% 20% 37% TOTAL REVENUE REQUIREMENTS 9,048,142 $ 2,144,581 $ 1,770,187 $ 1,770,187 $ 3,363,186 $ 24% 20% 20% 37% Less: Non-Rate Revenues
Sewer Rate Revenue
Septic Dump Income (310,641) $ (73,628) $ (60,774) $ (60,774) $ (115,465) $ 24% 20% 20% 37% Water Capital Fee (1,183) (280) (231) (231) (440) 24% 20% 20% 37% Other Fees (145,734) (34,542) (28,512) (28,512) (54,169) 24% 20% 20% 37% Refunds (1,864) (442) (365) (365) (693) 24% 20% 20% 37% Taxes & Licenses (87,300) (20,692) (17,079) (17,079) (32,449) 24% 20% 20% 37% Other Income (250,000) (59,255) (48,910) (48,910) (92,925) 24% 20% 20% 37% Interest Income (139,973) (33,176) (27,384) (27,384) (52,028) 24% 20% 20% 37% NET REVENUE REQUIREMENTS 8,111,447 $ 1,922,567 $ 1,586,931 $ 1,586,931 $ 3,015,018 $ Allocation of Revenue Requirements 100.0% 23.7% 19.6% 19.6% 37.2% Adjustments to Classification of Expenses
Adjustment to Current Rate Level: Total (VOL) (BOD) (TSS) (CA) Projected Sewer Rate Revenue at Current Rates $8,412,960 Projected Sewer Rate Increase 5.00%
Projected Sewer Rate Increase ($) $1,326,093
Target Rate Rev. After Rate Increases
2 $9,739,053
Adjusted Net Revenue 9,739,053 $ 2,308,340 $ 1,905,358 $ 1,905,358 $ 3,619,997 $ Percent of Revenue 100.0% 23.7% 19.6% 19.6% 37.2%

1. Revenue and expenses for FY 2020/21 are from source file: Enterprise Funds Budget 2020-21.pdf, pages 33-42.

2. Revenue from rate increases assumes an implementation date of April 1, 2022 and each July 1 annual there after.

Basis of Classification
Budget Categories
Total
Revenue
Flow Strength Customer
Prepared by NBS
www.nbsgov.com | 800.676.7516
Funct. & Classification, 27 of 41
CITY OF MADERA Allocation Factors

SEWER RATE STUDY
Cost of Service Analysis
TABLE 28 : CUSTOMER ALLOCATION FACTOR
Development of the CUSTOMER Allocation Factor
Customer Class
Number
of Accounts
1 Percentage of
Accounts
Number
of Units
1 Percentage of
Units
Single-Family 12,361 90.3% 12,361 75.3%
Multi-Family 452 3.3% 3,183 19.4%
Commercial
Auto Garage 39 0.3% 39 0.2%
Bakeries 5 0.0% 5 0.0%
Barber/Beauty 8 0.1% 8 0.0%
Bars 1 0.0% 1 0.0%
Car Wash 9 0.1% 9 0.1%
Church 40 0.3% 40 0.2%
Offices 630 4.6% 630 3.8%
Grocery 18 0.1% 18 0.1%
Hospitals 7 0.1% 7 0.0%
Hotel-Motel 7 0.1% 7 0.0%
Jails 2 0.0% 2 0.0%
Laundromat 9 0.1% 9 0.1%
School 24 0.2% 24 0.1%
Rec Facility 6 0.0% 6 0.0%
Restaurant 47 0.3% 47 0.3%
Service Station 7 0.1% 7 0.0%
Theater In 1 0.0% 1 0.0%
Industrial 16 0.1% 16 0.1%
Institutional 6 0.0% 6 0.0%
Total 13,695 100% 16,426 100%

1. Source files for accounts: December 2020: 2020 DEC MUNIS Billing_Manipulated.xlsx Prepared by NBS
www.nbsgov.com | 800.676.7516
Allocation Factors, 28 of 41
3/28/2022
CITY OF MADERA Allocation Factors

SEWER RATE STUDY
Cost of Service Analysis
TABLE 29 : VOLUME ALLOCATION FACTOR
Development of the VOLUME Allocation Factor
1 Customer Class
Number
of Accounts
Winter
Consumption
Jan.-Mar. 2020
(hcf)
Annualized
Winter
Consumption
(hcf)
Adjusted
Annual
Volume
2 (hcf)
Percentage
of Volume
Single-Family 12,361 330,244 1,320,976 1,553,198 62.39% Multi-Family 452 84,805 339,219 398,852 16.02%
Commercial
Auto Garage 39 940 3,762 4,423 0.18%
Bakeries 5 238 951 1,119 0.04%
Barber/Beauty 8 334 1,336 1,571 0.06%
Bars 1 4 15 18 0.00%
Car Wash 9 3,498 13,993 16,453 0.66%
Church 40 2,952 11,806 13,882 0.56%
Offices 630 57,375 229,498 269,843 10.84%
Grocery 18 6,394 25,574 30,070 1.21%
Hospitals 7 2,401 9,605 11,293 0.45%
Hotel-Motel 7 2,820 11,280 13,263 0.53%
Jails 2 638 2,553 3,001 0.12%
Laundromat 9 2,480 9,921 11,665 0.47%
School 24 18,849 75,397 88,651 3.56%
Rec Facility 6 437 1,746 2,053 0.08%
Restaurant 47 5,998 23,991 28,209 1.13%
Service Station 7 722 2,887 3,394 0.14%
Theater In 1 208 830 976 0.04%
Industrial 16 7,562 30,247 35,565 1.43%
Institutional 6 432 1,727 2,030 0.08%
Total 13,695 529,329 2,117,316 2,489,531 100.00%
2,489,531 Flow (hcf/yr.)

1.18 Flow Adj. Factor

1. Source files for water consumption: September 2019 through August 2020: MAIS Meter Usage 12 Months_Manipulated.xlsx September-December 2020: 2020 SEP-DEC Munis Water Usage_Manipulated.xlsx

2. Adjusted annual volume based on wastewater treatment plant influent data.

Source file: Madera City of. WWTP Daily Flows Jan. 2012 through Dec. 2020.xlsx Prepared by NBS
www.nbsgov.com | 800.676.7516
Allocation Factors, 29 of 41
3/28/2022
CITY OF MADERA Allocation Factors

SEWER RATE STUDY
Cost of Service Analysis
TABLE 30 : STRENGTH ALLOCATION FACTOR
Development of the STRENGTH Allocation Factor
Average
Strength
Factor
4 (mg/l)
Calculated BOD
(lbs./yr.)
Percent of
Total
Average
Strength
Factor
4 (mg/l)
Calculated
TSS (lbs./yr.)
Percent of
Total
Single-Family 1,553,198 200 1,937,870 56.0% 200 1,937,870 59.8% Multi-Family 398,852 100 248,817 7.2% 100 248,817 7.7%
Commercial
Auto Garage 4,423 300 8,278 0.2% 275 7,588 0.2%
Bakeries 1,119 1,200 8,373 0.2% 600 4,187 0.1%
Barber/Beauty 1,571 300 2,941 0.1% 275 2,696 0.1%
Bars 18 300 33 0.0% 275 31 0.0%
Car Wash 16,453 300 30,793 0.9% 275 28,226 0.9%
Church 13,882 300 25,980 0.8% 275 23,815 0.7%
Offices 269,843 300 505,010 14.6% 275 462,926 14.3%
Grocery 30,070 1,000 187,588 5.4% 700 131,312 4.1%
Hospitals 11,293 300 21,135 0.6% 275 19,374 0.6%
Hotel-Motel 13,263 300 24,822 0.7% 275 22,754 0.7%
Jails 3,001 300 5,617 0.2% 275 5,149 0.2%
Laundromat 11,665 300 21,830 0.6% 275 20,011 0.6%
School 88,651 300 165,911 4.8% 300 165,911 5.1%
Rec Facility 2,053 275 3,522 0.1% 250 3,202 0.1%
Restaurant 28,209 1,200 211,173 6.1% 600 105,586 3.3%
Service Station 3,394 300 6,352 0.2% 275 5,823 0.2%
Theater In 976 300 1,827 0.1% 275 1,675 0.1%
Industrial
Low 35,565 170 37,717 1.1% 170 37,717 1.2%
Medium
5 340 340
High
5 510 510
Institutional 2,030 300 3,800 0.1% 275 3,483 0.1%
Total 2,489,531 3,459,388 100.0% 3,238,150 100.0%

3. To match City's current rate schedule for commercial variable charges.

4. Typical strength factors for BOD and TSS are derived from previous rate study and the State Water Resources Control Board Revenue Program Guidelines, Appendix G

5. NBS is recommending medium and high industrial users are added to commercial classes.

Light Industrial
Professional Building
School
Game
Restaurant
Car Dealer & Dept/Retail
Professional Building
Medium Industrial
High Industrial
Grocery & Mortuary
Hospital
Hotel without dining
School
Professional Building
Professional Building
Professional Building
Car Dealer & Dept/Retail
Library & Church
Professional Building
n/a
n/a
Car Dealer & Dept/Retail
Restaurant
Total Suspended Solids (TSS)
Adjusted
Annual Flow
(hcf)
Customer Class
Biochemical Oxygen Demand (BOD)
Rate Commercial Classes
3 Prepared by NBS
www.nbsgov.com | 800.676.7516
Allocation Factors, 30 of 41
3/28/2022
CITY OF MADERA Allocation Factors

SEWER RATE STUDY
Cost of Service Analysis
TABLE 31 : REVENUE BY CUSTOMER CLASS
Total Revenue by Customer Class
6 Customer Class
Total Revenue
2020
% of Total
Revenue
Single-Family $ 6,420,703 64.9%
Multi-Family $ 1,631,105 16.5%
Commercial $ 1,837,245 18.6%
Total 9,889,053 $ 100.0%

6. Source files for accounts and billing data: September 2019 through August 2020: MAIS Meter Usage 12 Months_Manipulated.xlsx September-November 2020: 2020 SEP-NOV MUNIS Billing2_Manipulated.xlsx December 2020: 2020 DEC MUNIS Billing_Manipulated.xlsx
Prepared by NBS
www.nbsgov.com | 800.676.7516
Allocation Factors, 31 of 41
3/28/2022
CITY OF MADERA Rate Calculation

SEWER RATE STUDY
Sewer Cost of Service Analysis
TABLE 32 : ALLOCATION OF REVENUE REQUIREMENTS BY CUSTOMER CLASS

BOD TSS
Net Revenue Requirements
1 2,308,340 $ 1,905,358 $ 1,905,358 $ 3,619,997 $ 9,739,053 $ --

23.7% 19.6% 19.6% 37.2% 100%
Single-Family 1,440,155 $ 1,067,338 $ 1,140,260 $ 2,724,144 $ 6,371,897 $ 65.4% Multi-Family (per unit) 369,823 137,043 146,406 701,476 1,354,748 13.9% Commercial
Car Dealer & Dept/Retail 22,504 25,018 24,500 12,121 84,143 0.9% Game 1,904 1,940 1,884 1,322 7,050 0.1%
Grocery & Mortuary 27,882 103,319 77,265 3,967 212,433 2.2% Hospital 10,471 11,641 11,400 1,543 35,054 0.4%
Hotel without dining 12,298 13,672 13,389 1,543 40,901 0.4% Library & Church 12,872 14,309 14,013 8,815 50,009 0.5% Professional Building 265,281 294,910 288,804 144,350 993,345 10.2% Restaurant 27,193 120,921 64,591 11,460 224,166 2.3%
School 84,982 94,474 100,653 5,730 285,839 2.9%
Strip Mall - - - - - 0.0%
Warehouse - - - - - 0.0%
Industrial
Light Industrial 32,976 20,774 22,193 3,526 79,469 0.8% Medium Industrial - - - - - 0.0%
High Industrial - - - - - 0.0%
Total 2,308,340 $ 1,905,358 $ 1,905,358 $ 3,619,997 $ 9,739,053 $ 100%

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification Customer Class
by the allocation factors for each customer class.
% of COS
Revenue
Req't.

Volume
Treatment Customer
Related
Cost Classification Components
Cost-of-Service
Revenue Req't.

Prepared by NBS
www.nbsgov.com | 800.676.7516
COSA - Rates, 32 of 41
CITY OF MADERA Rate Calculation

SEWER RATE STUDY
Sewer Cost of Service Analysis
TABLE 33 : PROPOSED SEWER RATES
Customer Class
Number of
Units
Annualized
Winter
Consumption
Net Revenue
Requirement
Monthly Fixed
Charge Per
Unit
Volumetric
Charge per HCF
Single-Family 12,361 1,553,198 6,371,897 $ 42.96 $
Multi-Family (per unit) 3,183 398,852 1,354,748 $ 35.47 $ Commercial
Car Dealer & Dept/Retail 55 24,271 84,143 $ 22.82 $ 3.05 $ Game 6 2,053 7,050 $ 22.82 $ 3.02 $
Grocery & Mortuary 18 30,070 212,433 $ 22.82 $ 6.22 $
Hospital 7 11,293 35,054 $ 22.82 $ 2.73 $
Hotel without dining 7 13,263 40,901 $ 22.82 $ 2.71 $
Library & Church 40 13,882 50,009 $ 22.82 $ 3.17 $
Professional Building 655 286,104 993,345 $ 22.82 $ 3.06 $ Restaurant 52 29,328 224,166 $ 22.82 $ 6.73 $
School 26 91,653 285,839 $ 22.82 $ 2.74 $
Strip Mall 0 0 - $ 22.82 $ 3.06 $
Warehouse 0 0 - $ 22.82 $ 1.97 $
Industrial
Light Industrial 16 35,565 79,469 $ 22.82 $ 1.97 $
Medium Industrial 0 0 - $ 22.82 $ 2.74 $
High Industrial 0 0 - $ 22.82 $ 3.81 $
Total 16,426 2,489,531 9,739,053 $

2. HCF = hundred cubic feet, equal to 748 gallons of water.

Prepared by NBS
www.nbsgov.com | 800.676.7516
COSA - Rates, 33 of 41

CITY OF MADERA

SEWER RATE STUDY
Sewer Rate Development
TABLE 34 : CURRENT VS. PROPOSED SEWER RATES (MONTHLY) - PROPOSED RATES FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26

FIXED MONTHLY CHARGES
Single-Family $42.75 $42.96 $45.11 $47.37 $49.74 $52.23 Multi-Family (per unit) $27.77 $35.47 $37.24 $39.10 $41.06 $43.11 Commercial (All) $19.02 $22.82 $23.96 $25.16 $26.42 $27.74

NON-RESIDENTIAL VOLUMETRIC CHARGES PER HCF
1 Commercial
Car Dealer & Dept/Retail $2.30 $3.05 $3.20 $3.36 $3.53 $3.71 Game $3.46 $3.02 $3.17 $3.33 $3.50 $3.68
Grocery & Mortuary $5.04 $6.22 $6.53 $6.86 $7.20 $7.56
Hospital $2.28 $2.73 $2.87 $3.01 $3.16 $3.32
Hotel without dining $2.28 $2.71 $2.85 $2.99 $3.14 $3.30 Library & Church $2.25 $3.17 $3.33 $3.50 $3.68 $3.86
Professional Building $2.28 $3.06 $3.21 $3.37 $3.54 $3.72 Restaurant $5.22 $6.73 $7.07 $7.42 $7.79 $8.18
School $2.38 $2.74 $2.88 $3.02 $3.17 $3.33
Strip Mall $3.52 $3.06 $3.21 $3.37 $3.54 $3.72
Warehouse $3.51 $1.97 $2.07 $2.17 $2.28 $2.39
Industrial
Light Industrial $3.51 $1.97 $2.07 $2.17 $2.28 $2.39
Medium Industrial N/A $2.74 $2.88 $3.02 $3.17 $3.33
High Industrial N/A $3.81 $4.00 $4.20 $4.41 $4.63

1. HCF = hundred cubic feet, equal to 748 gallons of water.

Sewer Rate Schedule
Current
Rates
Proposed Sewer Rates
Prepared by NBS
www.nbsgov.com | 800.676.7516
Current & Proposed Rates, 34 of 41
3/28/2022
Prepared by NBS
www.nbsgov.com | 800.676.7516
SFR Bill Comp, Page 35 of 41
3/28/2022
$42.75
$59.05
$60.82
$62.64
$65.77
$69.06
$42.96
$45.11
$47.37
$49.74
$52.23
$0
$80
$70
$60
$50
$40
$30
$20
$10
Current FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Monthly Charges
Monthly Single Family Residential Sewer Bill Comparison Current vs. Proposed Rates
SFR Bill - No ARPA
SFR Bill - ARPA
Prepared by NBS
www.nbsgov.com | 800.676.7516
SFR Regional Comp, Page 36 of 41
3/28/2022 $25.75 $26.45 $29.51 $37.10 $40.20 $42.75 $42.96 $47.54 $51.25 $53.90 $0
$60
$50
$40
$30
$20
$10
Single-Family Residential Regional Monthly Sewer Bill Comparison Prepared by NBS
www.nbsgov.com | 800.676.7516
MFR Bill Comp, Page 37 of 41
3/28/2022
$27.77
$48.76
$50.22
$51.73
$54.32
$57.04
$35.47
$37.24
$39.10
$41.06
$43.11
$0
$60
$50
$40
$30
$20
$10
Current FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Monthly Charges
Monthly Multi Family Residential Sewer Bill Comparison
Current vs. Proposed Rates
MFR Bill - No ARPA
MFR Bill - ARPA
Prepared by NBS
www.nbsgov.com | 800.676.7516
Prof. Office Comp, Page 38 of 41
3/28/2022
$101.10
$182.56
$188.18
$193.83
$203.41
$213.44
$132.98
$139.52
$146.48
$153.86
$161.66
$0
$50
$250
$200
$150
$100
Current FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Monthly Charges
Monthly Professional Building Commercial Sewer Bill Comparison Current vs. Proposed Rates (Assuming 36 hcf consumption) Prof. Building Bill - No ARPA
Prof. Building Bill - ARPA
Prepared by NBS
www.nbsgov.com | 800.676.7516
Prof. Office Regional Comp, Page 39 of 41
3/28/2022 $64.52 $75.76 $84.96 $92.91 $96.55 $101.10 $111.60 $132.16 $132.98 $141.22 $0
$80
$60
$40
$20
$200
$180
$160
$140
$120
$100
Monthly Professional Building Commercial Regional Sewer Bill Comparison
(Assuming 36 hcf consumption)
Variable Charge
Fixed Charge
Prepared by NBS
www.nbsgov.com | 800.676.7516
Restaurant Comp, Page 40 of 41
3/28/2022
$264.36
$466.11
$480.21
$494.81
$519.50
$545.69
$339.13
$356.25
$373.90
$392.55
$412.20
$0
$600
$500
$400
$300
$200
$100
Current FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Monthly Charges
Monthly Restaurant Sewer Bill Comparison
Current vs. Proposed Rates (Assuming 47 hcf consumption) Restaurant Bill - No ARPA
Restaurant Bill - ARPA
Prepared by NBS
www.nbsgov.com | 800.676.7516
Restaurant Regional Comp, Page 41 of 41
3/28/2022 $106.57 $138.61 $155.00 $187.76 $201.45 $263.00 $280.02 $339.13 $427.90 $465.63 $0
$500
$400
$300
$200
$100
Monthly Commercial Restaurant Regional Sewer Bill Comparison (Assuming 50 hcf consumption)
Variable Charge
Fixed Charge
OFFICE LOCATIONS:

Temecula – Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
San Francisco – Regional Office
870 Market Street, Suite 1223
San Francisco, CA 94102
California Satellite Offices
Atascadero, Davis
Huntington Beach,
Joshua Tree, Riverside
Sacramento, San Jose
www.nbsgov.com

FINAL REPORT
Storm Drain Rate Study
MARCH 2022
Aerial view of City of Madera
via Google Earth
via Google Earth

CITY OF
MADERA
~ NBS helplng oommunltlee fund tomorrow

TABLE OF CONTENTS
Purpose and Overview of the Study...................................................................1 A. Purpose ...........................................................................................................................1 B. Overview of the Study.....................................................................................................1 Storm Drain Rate Study .....................................................................................2 A. Key Storm Drain Rate Study Issues.................................................................................2 B. Financial Plan...................................................................................................................2 C. Cost of Service Analysis...................................................................................................4 Customer Classes.................................................................................................................4 D. Rate Design Analysis.......................................................................................................5 E. Proposed Storm Drain Rates...........................................................................................5 Recommendations and Next Steps ....................................................................7 A. Consultant Recommendations........................................................................................7 B. Next Steps .......................................................................................................................7 C. NBS’ Principal Assumptions and Considerations ............................................................7 Appendix: Detailed Storm Drain Rate Study Tables and Figures Section 1.

Section 2.

Section 3.

TABLE OF FIGURES
Figure 1. Summary of Storm Drain Revenue Requirements.................................................................. 3 Figure 2. Summary of Reserve Funds..................................................................................................... 4 Figure 3. Customer Allocation Factor..................................................................................................... 4 Figure 4. Revenue Allocation Factor ...................................................................................................... 5 Figure 5. Summary of Rate Calculation.................................................................................................. 5 Figure 6. Proposed Storm Drain Rates................................................................................................... 6 Figure 7. Monthly Bill Comparison for Single-Family Customers........................................................... 6 City of Madera
Storm Drain Rate Study 1

PURPOSE AND OVERVIEW OF THE STUDY
A. Purpose
The City of Madera (City) retained NBS to conduct a comprehensive storm drain rate study. The study looked at setting rates to meet revenue requirements, provide greater financial stability for the storm drainage enterprise, and comply with legal requirements (such as California Constitution article XIII D, Section 6, which is commonly referred to as Proposition 218 [Prop 218]). The rates resulting from this study were developed in a manner that is consistent with industry standard cost of service principles. In addition to documenting the rate study methodology, this report is provided with the intent of assisting the City to maintain transparent communications with its residents and businesses.

In developing new storm drain rates, NBS worked cooperatively with City staff and the City Council (Council) in selecting appropriate proposed rates. Based on input from all stakeholders, the proposed rates are summarized in this report.

B. Overview of the Study

FINANCIAL PLAN
As a part of this rate study, NBS projected revenues and expenditures on a cash flow basis for the next five years. The amount of rate revenue required, that will allow reserves to be maintained at the recommended levels, is known as the net revenue requirement. As current rate revenue falls short of the net revenue requirement, rate adjustments -- or more accurately, adjustments in the total revenue collected from rates -- are recommended. This report presents an overview of the methodologies, assumptions, and data used, along with the financial plans and proposed rates developed in this study1.

STORM DRAIN RATE DESIGN ANALYSIS
Rate design is typically the stage in the study where NBS, staff and the Council must work closely together, to develop rate alternatives that will meet the City’s objectives. It is important for the storm drain utility to send proper price signals to its customers about the actual cost of providing storm drain services to each parcel.

This objective is typically addressed through both the magnitude of the rate adjustments, and the rate structure design. In other words, both the amount of revenue collected, and the way in which the revenue is collected from customers are important.
1 The complete financial plan is set forth in the Appendix.

SECTION 1.

City of Madera
Storm Drain Rate Study 2

STORM DRAIN RATE STUDY
A. Key Storm Drain Rate Study Issues
The City’s storm drain rate analysis was undertaken with a few specific objectives, including:
• Maintain routine operation and maintenance expenditures of the storm drain system, including salaries and benefits of staff, contracted services and sustainability programs. • Fund any potential capital projects to maintain a modern and reliable storm drain network and infrastructure.
• Maintain reserve fund levels to ensure future financial stability for the storm drain utility. • Comply with Prop 218 requirements to ensure cost of service are properly allocated amongst user classifications.

The rate structure NBS proposed relied on industry standards and cost-of-service principles. The proposed rates follow the same rate structure as current rates, maintaining a fixed monthly usage charge dependent on customer class and square footage.

B. Financial Plan
It is important for municipal utilities to maintain reasonable reserves in order to handle emergencies, fund working capital, maintain a good credit rating, and generally follow sound financial management practices.

Rate adjustments are governed by the need to meet these objectives. The current state of the City’s storm drain utility, with regard to these objectives, is as follows:
• Meeting Net Revenue Requirements: For Fiscal Years (FY) 2021/22 through FY 2025/26, the projected net revenue requirement (that is, total annual expenses plus debt service and rate-funded capital costs2, less non-rate revenues) for the City is approximately $928,000 on average, annually. If no rate adjustments are implemented, the City is projected to have about a $81,000 deficit in FY 2021/22.
• Building and Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies such as revenue shortfalls, asset failure, and natural disasters, among other events.

Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and emergencies. The reserve funds for the Utility are considered unrestricted reserves and consist of the following:
• The Operating Reserve should equal approximately 90 days of operating expenses (reaching approximately $222,000 in FY 2025/26). An Operating Reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures, such as – particularly in periods of economic distress – changes or trends in age of receivables. 2 The City’s storm drain utility does not currently have any outstanding debt services or capital improvement projects over the next 5 years at the time of this study.

SECTION 2.

City of Madera
Storm Drain Rate Study 3
• The Capital Outlay Reserve should equal 3% of net assets, averaging about $500,000 over the next five years. These monies are set aside to address long-term and routine capital system replacement and rehabilitation needs.
• Funding Capital Improvement Projects: The City must also be able to fund necessary capital improvements to maintain current service levels. Currently, the City is estimating an annual capital improvement plan of $200,000 for the storm drain utility. • Inflation and Growth Projections: Assumptions regarding cost inflation were made in order to project future revenues and expenses for the study period.
• Customer growth is expected to be 0% annually.
• General inflation is assumed to be 3% annually.
• Salaries, benefits, fuel, and electricity are all assumed to be 5% annually. • Some expenses are assumed to have no escalation annually. • Maintaining Adequate Bond Coverage: The City currently has no outstanding debt service obligations. However, the benefit of maintaining a debt coverage ratio over 1.20 is that it strengthens the City’s credit rating, which can help lower the interest rates for debt-funded capital projects in the future, should the City decide to use them.

Rate revenue adjustments of fifteen percent (15%) in FY 2021/22 through FY 2025/26 will be needed in order to fund operating expenses and maintain reserves at the recommended targets. Figure 1 summarizes the sources and uses of funds, net revenue requirements, and the recommended annual percent adjustments in total rate revenue recommended for the next 5 years for the City.

Figure 1. Summary of Storm Drain Revenue Requirements
Figure 2 summarizes the projected reserve fund balances and reserve targets for the storm drain utility’s unrestricted reserve funds. A more detailed version of the proposed 5-year financial plan is included in the Appendix. As can be seen in Figure 2, given proposed rate adjustments, reserves will meet the minimum target by fiscal year 2024/25.

Budget
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Sources of Storm Drain Funds
Rate Revenue Under Prevailing Rates $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 Additional Revenue from Rate Increases 1 - 25,057 215,488 348,038 500,470 675,768 Non-Rate Revenues 182,442 12,442 12,442 12,442 12,442 12,442 Interest Earnings 3,110 14,925 13,880 12,098 12,095 14,246 Total Sources of Funds $ 853,731 $ 720,603 $ 909,989 $ 1,040,756 $ 1,193,186 $ 1,370,635 Uses of Storm Drain Funds
Operating Expenses $ 749,310 $ 776,800 $ 805,800 $ 835,900 $ 867,400 $ 900,500 Debt Service - - - - - -
Rate-Funded Capital Expenses - - - 205,000 210,125 170,226 Total Use of Funds $ 749,310 $ 776,800 $ 805,800 $ 1,040,900 $ 1,077,525 $ 1,070,726 Surplus (Deficiency) after Rate Increase $ 104,421 $ (56,197) $ 104,189 $ (144) $ 115,661 $ 299,909 Projected Annual Rate Increase 0.00% 15.00% 15.00% 15.00% 15.00% 15.00% Cumulative Rate Increases 0.00% 15.00% 32.25% 52.09% 74.90% 101.14% Surplus (Deficiency) before Rate Increase $ 104,421 $ (81,254) $ (111,299) $ (348,181) $ (384,809) $ (375,859) Net Revenue Requirement2$ 563,758 $ 749,433 $ 779,478 $ 1,016,360 $ 1,052,988 $ 1,044,038

1. Revenue from rate increases assume an implementation date of April 1, 2022 and then July 1st, 2022 through 2025.

2. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from storm drain rates.

Summary of Sources and Uses of Funds
and Net Revenue Requirements
Projected

I I I I I I
City of Madera
Storm Drain Rate Study 4
Figure 2. Summary of Reserve Funds
C. Cost of Service Analysis
Once the net revenue requirements are determined, the cost-of-service analysis proportionately distributes the revenue requirements to each of the customer classes. All costs in the City’s budget are allocated to each component of the rate structure in proportion to the level of service required by customers. The levels of service are related to number of accounts, total square footage, and current revenue. Ultimately, a cost-ofservice analysis is intended to result in rates that are proportional to the cost of providing service to each customer.

CUSTOMER CLASSES
Customer classes are determined by combining customers with similar demand characteristics and types of use into categories that reflect the cost differentials to serve each type of customer. This process is limited by the desire to not overcomplicate the City’s rate structure. For the City, the customer classes are split between single-family residential, multi-family residential, and non-residential. The current storm drainage rate structure has churches separated from residential and non-residential customers. However, there is no cost of service basis for making them different than non-residential. Therefore, they have been combined with non-residential.

The number of customers for each customer class and the estimated square foot total for non-single-family customers are shown in Figure 3. The 2020 rate revenue from usage charges are allocated to customer classes based on the revenue collected, as shown in Figure 4.

Figure 3. Customer Allocation Factor
Budget
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Storm Drainage Operating Reserve Fund
Ending Balance $ 184,761 $ 128,564 $ 198,690 $ 198,547 $ 213,879 $ 222,041 Recommended Minimum Target 184,761 191,540 198,690 206,112 213,879 222,041 Capital Outlay Reserve Fund
Ending Balance $ 617,661 $ 617,661 $ 451,723 $ 451,723 $ 552,052 $ 798,647 Recommended Minimum Target 545,300 532,200 525,400 518,900 512,700 506,900 Total Ending Balance $ 802,422 $ 746,225 $ 650,414 $ 650,270 $ 765,931 $ 1,020,688 Total Recommended Minimum Target $ 730,061 $ 723,740 $ 724,090 $ 725,012 $ 726,579 $ 728,941 Beginning Reserve Fund Balances and
Recommended Reserve Targets
Projected
Customer Class
Number of
Accounts1
Percent of
Total
Square
Footage
Estimate
Percent of
Total
Single Family Residential 13,585 94.4% n/a
Multi Family Residential 4 0.0% 938,745 14.5%
Non-Residential 799 5.6% 5,532,315 85.5%
Total 14,388 100.0% 6,471,060 100.0%

1. Number of accounts from Oct. 2020 & square footage estimate from source files:

MAIS Meter Usage 12 Months_Manipulated_02.06.21.xlsx,
2020 SEP-NOV MUNIS Billing2_Manipulated.xlsx, 2020 DEC MUNIS Billing_Manipulated.xlsx

I I I I
City of Madera
Storm Drain Rate Study 5
Figure 4. Revenue Allocation Factor
D. Rate Design Analysis
NBS recommends that the City retain the current storm drain rate structure, with a fixed monthly usage charge for single-family customers, and a per square foot charge (with a maximum monthly cap) for multifamily residential, non-residential (combined with churches). Figure 5 summarizes the proposed storm drain monthly user charges.

Figure 5. Summary of Rate Calculation
E. Proposed Storm Drain Rates
The cost-of-service analysis is used to establish the rates for the first year in the five-year rate plan, FY 2021/22. In the subsequent four years of the rate planning period, proposed charges are simply adjusted by the proposed adjustment in total rate revenue needed, to meet projected revenue requirements. Figure 6 provides a comparison of the proposed rates for FY 2021/22 through FY 2025/26. More detailed tables on the development of the proposed charges are documented in the Appendix.

Customer Class 2020 Revenue
Percent of
Total
Single Family Residential $ 415,808 61.1%
Multi Family Residential $ 12,919 1.9%
Non-Residential $ 251,973 37.0%
Total $ 680,699 100%

1. 2020 revenue found in source files: MAIS Meter Usage 12 Months_Manipulated_02.06.21.xlsx, 2020 SEP-NOV MUNIS Billing2_Manipulated.xlsx, 2020 DEC MUNIS Billing_Manipulated.xlsx Customer Classes
FY 2021/22
Net Revenue
Requirement
Number of
Accounts
Square
Footage
Estimate
By Account
Monthly
Charge
By Sq. Ft.

Monthly
Charge
Max Sq. Ft.

Based on
Current Rates
Max Monthly
Rate
Proposed Storm Drain Monthly User Charges
math formula a b c d = b / a e = c / a f g = f * e
Single Family Residential $ 476,147 13,585 n/a $ 2.92 n/a n/a n/a Multi Family Residential $ 14,793 4 938,745 n/a $ 0.002 40,000 $ 80.00 40 units to 80 units - - - n/a $ 0.002 80,000 $ 160.00
Over 81 units - - - n/a $ 0.002 120,000 $ 240.00
Non-Residential $ 288,538 799 5,532,315 n/a $ 0.005 20,000 $ 100.00 Total Net Revenue Requirement $ 779,478 14,388 6,471,060 City of Madera
Storm Drain Rate Study 6
Figure 6. Proposed Storm Drain Rates
Figure 7 compares the monthly storm drain bills for the current and proposed rates for single-family residential customers over the next five years.

Figure 7. Monthly Bill Comparison for Single-Family Customers FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Proposed Monthly Usage Charge
Single Family Residential
per month $2.00 $2.92 $3.36 $3.86 $4.44 $5.11
Multi Family Residential
Equal or less than 40 units
per square foot, $0.002 $0.002 $0.003 $0.004 $0.005 $0.006 maximum per month $80.00 $80.00 $92.00 $106.00 $122.00 $140.00 Greater than 40 & equal or less than 80
units
per square foot, $0.002 $0.002 $0.003 $0.004 $0.005 $0.006 maximum per month $160.00 $160.00 $184.00 $212.00 $244.00 $281.00 Greater than 81 units
per square foot, $0.002 $0.002 $0.003 $0.004 $0.005 $0.006 maximum per month $240.00 $240.00 $276.00 $317.00 $365.00 $420.00 Non-Residential (Including Churches)
per square foot of ground floor, $0.004 $0.005 $0.006 $0.007 $0.009 $0.011 maximum per month $80.00 $100.00 $115.00 $132.00 $152.00 $175.00 Current
Rates
Proposed Rates Storm Drain Rate Schedule
City of Madera
Storm Drain Rate Study 7

RECOMMENDATIONS AND NEXT STEPS
A. Consultant Recommendations
NBS recommends the City take the following actions:

Approve and accept this Study: NBS recommends the City Council formally approve and adopt this Study and its recommendations and proceed with the steps required to implement the proposed rates. This will provide documentation of the rate study analyses and the basis for analyzing potential changes to future rates.

Implement Recommended Levels of Rate Adjustments and Proposed Rates: Based on successfully meeting the Proposition 218 procedural requirements, the City Council should proceed with implementing the 5-year schedule of proposed rates and rate adjustments. This will help ensure the continued financial health of City’s storm drain utility.

B. Next Steps
Annually Review Rates and Revenue – Any time an agency adopts new utility rates or rate structures, those new rates should be closely monitored over the next several years to ensure the revenue generated is sufficient to meet the annual revenue requirements.

Note: The attached Appendix provide more detailed information on the analysis of the storm drain revenue requirements, cost-of-service analysis and cost allocations, and the rate design analyses that have been summarized in this report.

C. NBS’ Principal Assumptions and Considerations
In preparing this report and the opinions and recommendations included herein, NBS has relied on a number of principal assumptions and considerations with regard to financial matters, conditions, and events that may occur in the future. This information and these assumptions, including City’s budgets, capital improvement costs, and information from City staff were provided by sources we believe to be reliable, although NBS has not independently verified this data.

SECTION 3.

City of Madera
Storm Drain Rate Study i
Appendix: Detailed Storm Drain Study Tables and Figures CITY OF MADERA Financial Plan & Reserve Summary

STORM DRAIN RATE STUDY
Financial Plan and Reserve Projections
TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS 5-Year Rate Period Budget
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Sources of Storm Drain Funds
Rate Revenue:

Drainage User Fees 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ Revenue from Rate Increases - 25,057 215,488 348,038 500,470 675,768 Subtotal: Rate Revenue After Rate Increases 668,179 693,236 883,667 1,016,217 1,168,649 1,343,947 Non-Rate Revenue:

Fines & Forfeiture 12,287 12,287 12,287 12,287 12,287 12,287 Refunds 155 155 155 155 155 155
Other Revenue 170,000 - - - - -
Interest Income 3,110 14,925 13,880 12,098 12,095 14,246 Subtotal: Non-Rate Revenue 185,552 27,367 26,322 24,540 24,537 26,688 Total Sources of Funds 853,731 $ 720,603 $ 909,989 $ 1,040,756 $ 1,193,186 $ 1,370,635 $ Uses of Storm Drainage Funds
Operating Expenses
Salaries & Benefits 352,994 $ 370,600 $ 389,100 $ 408,400 $ 428,600 $ 450,000 $ Materials & Services 122,500 127,500 132,700 138,100 143,700 149,500 Interfund Charges 150,994 152,400 154,000 155,600 157,300 159,000 Special Payments 69,578 73,100 76,800 80,600 84,600 88,800 Transfer Out 53,244 53,200 53,200 53,200 53,200 53,200
Subtotal: Operating Expenses 749,310 $ 776,800 $ 805,800 $ 835,900 $ 867,400 $ 900,500 $ Other Expenditures:

Existing Debt Service - $ - $ - $ - $ - $ - $
New Debt Service - - - - - -
Rate-Funded Capital Expenses - - - 205,000 210,125 170,226 Subtotal: Other Expenditures - $ - $ - $ 205,000 $ 210,125 $ 170,226 $ Total Uses of Storm Drainage Funds 749,310 $ 776,800 $ 805,800 $ 1,040,900 $ 1,077,525 $ 1,070,726 $ Annual Surplus/(Deficit) 104,421 $ (56,197) $ 104,189 $ (144) $ 115,661 $ 299,909 $ Net Revenue Req't. (Total Uses less Non-Rate Revenue) 563,758 $ 749,433 $ 779,478 $ 1,016,360 $ 1,052,988 $ 1,044,038 $ Projected Annual Rate Revenue Adjustment 0.00% 15.00% 15.00% 15.00% 15.00% 15.00% Cumulative Increase from Annual Revenue Increases 0.00% 15.00% 32.25% 52.09% 74.90% 101.14% Debt Coverage After Rate Increase N/A N/A N/A N/A N/A N/A

1. Revenue and expenses for FY 2019/20 through FY 2020/21 are from source file: Enterprise Funds Budget 2020-21.pdf, pages 56-58.

RATE REVENUE REQUIREMENTS SUMMARY
1 Projected
Financial Plan, 1 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA Financial Plan & Reserve Summary

STORM DRAIN RATE STUDY
Financial Plan and Reserve Projections
TABLE 2 : RESERVE FUND SUMMARY 5-Year Rate Period
Budget
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Total Beginning Cash
1,2 698,001 $
Storm Drainage Operating Reserve Fund
Beginning Reserve Balance
1 375,000 $ 184,761 $ 128,564 $ 198,690 $ 198,547 $ 213,879 $ Plus: Net Cash Flow (After Rate Increases) 104,421 (56,197) 104,189 (144) 115,661 299,909 Less: Transfer Out to Capital Replacement Reserve (294,660) - (34,062) - (100,329) (291,747) Ending Operating Reserve Balance 184,761 $ 128,564 $ 198,690 $ 198,547 $ 213,879 $ 222,041 $ Target Ending Balance (90-days of O&M)
3 184,761 $ 191,540 $ 198,690 $ 206,112 $ 213,879 $ 222,041 $ Capital Outlay Reserve Fund
Beginning Reserve Balance 323,001 $ 617,661 $ 617,661 $ 451,723 $ 451,723 $ 552,052 $ Plus: Transfer of Operating Reserve Surplus 294,660 - 34,062 - 100,329 291,747 Less: Use of Reserves for Capital Projects - - (200,000) - - (45,152) Ending Capital Rehab & Replacement Reserve Balance 617,661 $ 617,661 $ 451,723 $ 451,723 $ 552,052 $ 798,647 $ 545,300 $ 532,200 $ 525,400 $ 518,900 $ 512,700 $ 506,900 $ Ending Balance 802,422 $ 746,225 $ 650,414 $ 650,270 $ 765,931 $ 1,020,688 $ Minimum Target Ending Balance 730,061 $ 723,740 $ 724,090 $ 725,012 $ 726,579 $ 728,941 $ Ending Surplus/(Deficit) Compared to Reserve Targets 72,361 $ 22,486 $ (73,677) $ (74,742) $ 39,352 $ 291,747 $ Annual Interest Earnings Rate
5 0.00% 1.86% 1.86% 1.86% 1.86% 1.86%

1. Revenue and expenses for FY 2019/20 through FY 2020/21 are from source file: Enterprise Funds Budget 2020-21.pdf, pages 56-58.

2. Beginning cash balance for the Storm Drainage Fund is found in Source File: Storm Drainage Ent WTB 6_30_20.pdf, Pooled Cash.

3. NBS Recommends setting the Operating Reserve Fund target at 90 days of operating and maintenance expenses.

4. NBS recommends setting the Capital Outlay Reserve to a minimum of 3% of net assets.

5. City's actual or budgeted interest earnings are used in analysis for unrestricted reserves in FY 2020/21. For 2021/22 and beyond, interest earning rates are estimated Target Ending Balance (3% of Net Assets)
at the 3-year average (FY '17/18 - '19/20) for funds invested in LAIF, per the California Treasurer's Office website, for the restricted reserves.

Source: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp. 4 SUMMARY OF CASH ACTIVITY

UN-RESTRICTED RESERVES
Projected
Financial Plan, 2 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516

CITY OF MADERA

STORM DRAIN RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 1
$0
$800,000
$600,000
$400,000
$200,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Annual Obligations Fiscal Year Ending June 30
Storm Drain Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Rate Funded Capital Expenses Debt Service
O&M Expenses Revenues under Existing Rates
Revenues under Adjusted Rates
Charts and Tables, 3 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
• • •
•
•
• •
•
•
• •
•
•
•
D I • • •

CITY OF MADERA

STORM DRAIN RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 2
$-
$800,000
$600,000
$400,000
$200,000
$1,200,000
$1,000,000
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Fiscal Year Ending June 30
Cash Balances vs.

Recommended Reserve Targets
Ending Cash Balance
Minimum Target Reserve Balance
Charts and Tables, 4 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
I I

CITY OF MADERA

STORM DRAIN RATE STUDY
Rate Adjustment Charts and Report Tables
CHART 3

15.0% 15.0% 15.0% 15.0% 15.0%
8%
6%
4%
2%
0%
16%
14%
12%
10%
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Fiscal Year Ending June 30
Projected Adjustments to Rate Revenue
Charts and Tables, 5 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA EXHIBIT 1

STORM DRAIN RATE STUDY
Operating Revenue and Expenses
TABLE 3 : REVENUE FORECAST
1 Budget
SOURCES OF REVENUE Basis 2021 2022 2023 2024 2025 2026

DRAINAGE OPERATIONS
Fines & Forfeiture
Late Payment/Other Penalty 1 12,287 $ 12,287 $ 12,287 $ 12,287 $ 12,287 $ 12,287 $ Subtotal 12,287 $ 12,287 $ 12,287 $ 12,287 $ 12,287 $ 12,287 $ Charges for Services
Drainage User Fees 1 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ Subtotal 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ Interest
Interest Income
2 4 3,110 $ - $ - $ - $ - $ - $
Subtotal 3,110 $ - $ - $ - $ - $ - $
Interfund Charges
Interfund Charges Revenue - Co 7 170,000 $ - $ - $ - $ - $ - $ Subtotal 170,000 $ - $ - $ - $ - $ - $
Gains & Proceeds
Sale of Real & Personal Property 7 - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $
Refunds
Collection Recovery 1 155 $ 155 $ 155 $ 155 $ 155 $ 155 $ Subtotal 155 $ 155 $ 155 $ 155 $ 155 $ 155 $

DRAINAGE FLOOD CONTROL
Gains & Proceeds
Sale of Real & Personal Property 1 - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $

DRAINAGE CAPITAL OUTLAY
Non-Cash Capital Contribution
Capital Contribution Exh. 2 - $ - $ - $ - $ - $ - $
Subtotal - $ - $ - $ - $ - $ - $
TOTAL: REVENUE 853,731 $ 680,621 $ 680,621 $ 680,621 $ 680,621 $ 680,621 $ Prop 218 Rate Period
Exhibit 1 (O&M), 6 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA EXHIBIT 1

STORM DRAIN RATE STUDY
Operating Revenue and Expenses
TABLE 4 : REVENUE SUMMARY Budget
RATE REVENUE:

Drainage User Fees 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ 668,179 $ OTHER REVENUE:

Fines & Forfeiture 12,287 12,287 12,287 12,287 12,287 12,287 Refunds 155 155 155 155 155 155
Gains & Proceeds - - - - - -
Other Revenue 170,000 - - - - -
Interest Income 3,110 - - - - -
TOTAL: REVENUE 853,731 $ 680,621 $ 680,621 $ 680,621 $ 680,621 $ 680,621 $ TABLE 5 : OPERATING EXPENSE FORECAST
1 Budget
DESCRIPTION Basis 2021 2022 2023 2024 2025 2026

DRAINAGE OPERATIONS
Interfund Charges
Facility Maintenance 4 47,905 $ 49,300 $ 50,800 $ 52,300 $ 53,900 $ 55,500 $ Admin Ove. 4 2,084 2,100 2,200 2,300 2,400 2,500
Subtotal 49,989 $ 51,400 $ 53,000 $ 54,600 $ 56,300 $ 58,000 $ Transfer Out
Transfer Out - Insurance Rese. 7 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ Subtotal 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ Sub-Total: Drainage Operations 94,989 $ 96,400 $ 98,000 $ 99,600 $ 101,300 $ 103,000 $ Depreciation (Non-cash item left out of analysis)
3 Depreciation/Replacement 7 589 $ 600 $ 600 $ 600 $ 600 $ 600 $ Subtotal 589 $ 600 $ 600 $ 600 $ 600 $ 600 $
Prop 218 Rate Period
Prop 218 Rate Period
Exhibit 1 (O&M), 7 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
,__
CITY OF MADERA EXHIBIT 1

STORM DRAIN RATE STUDY
Operating Revenue and Expenses
TABLE 6 : OPERATING EXPENSE FORECAST
1 Budget
DESCRIPTION Basis 2021 2022 2023 2024 2025 2026

DRAINAGE FLOOD CONTROL
Salaries & Benefits
Salaries / Full-Time 2 197,416 $ 207,300 $ 217,700 $ 228,600 $ 240,000 $ 252,000 $ Salaries / Part-Time 2 - - - - - -
Salaries / Overtime 2 6,000 6,300 6,600 6,900 7,200 7,600 Salaries / Leave Payout 2 - - - - - -
Salaries / Uniform Pay 2 592 600 600 600 600 600
Public Employees Retirement 3 25,814 27,100 28,500 29,900 31,400 33,000 Long Term Disability Insurance 3 662 700 700 700 700 700 Life Insurance Premiums 3 291 300 300 300 300 300
Workers Compensation Insurance 3 19,344 20,300 21,300 22,400 23,500 24,700 Medicare Tax - Employer's Share 3 3,037 3,200 3,400 3,600 3,800 4,000 Unfunded Accrued Liability 3 53,424 56,100 58,900 61,800 64,900 68,100 Deferred Compensation/Part-Time 3 - - - - - -
Deferred Compensation/Full-Time 3 6,745 7,100 7,500 7,900 8,300 8,700 Unemployment Insurance 3 876 900 900 900 900 900
Section 125 Benefit Allowance 3 38,793 40,700 42,700 44,800 47,000 49,400 Subtotal 352,994 $ 370,600 $ 389,100 $ 408,400 $ 428,600 $ 450,000 $ Materials & Services
Gas & Electric Utilities 6 50,000 $ 52,500 $ 55,100 $ 57,900 $ 60,800 $ 63,800 $ Vehicle Fuel, Supplies & Maintenance 5 12,500 13,100 13,800 14,500 15,200 16,000 Contracted Services 4 15,000 15,500 16,000 16,500 17,000 17,500 Taxes & Assessments 4 22,000 22,700 23,400 24,100 24,800 25,500 Maintenance/Other Supplies 4 23,000 23,700 24,400 25,100 25,900 26,700 Subtotal 122,500 $ 127,500 $ 132,700 $ 138,100 $ 143,700 $ 149,500 $ Interfund Charges
Interfund Charge - Central Su. 7 3,324 $ 3,300 $ 3,300 $ 3,300 $ 3,300 $ 3,300 $ Interfund Charge - Admin. Overhead 7 38,271 38,300 38,300 38,300 38,300 38,300 Interfund Charge - Vehicle Replacement 7 12,031 12,000 12,000 12,000 12,000 12,000 Interfund Charge - Vehicle Maintenance 7 32,978 33,000 33,000 33,000 33,000 33,000 Interfund Charge - Comp. Maintenance 7 11,490 11,500 11,500 11,500 11,500 11,500 Interfund Charge - Computer 7 2,649 2,600 2,600 2,600 2,600 2,600 Interfund Charge - Software 7 262 300 300 300 300 300
Subtotal 101,005 $ 101,000 $ 101,000 $ 101,000 $ 101,000 $ 101,000 $ Special Payments
Pension Expense-GASB 68 3 69,578 $ 73,100 $ 76,800 $ 80,600 $ 84,600 $ 88,800 $ Subtotal 69,578 $ 73,100 $ 76,800 $ 80,600 $ 84,600 $ 88,800 $ Transfer Out
Transfer Out - Insurance Rese. 7 8,244 8,200 8,200 8,200 8,200 8,200 Subtotal 8,244 $ 8,200 $ 8,200 $ 8,200 $ 8,200 $ 8,200 $ Sub-Total: Drainage Flood Control 654,321 $ 680,400 $ 707,800 $ 736,300 $ 766,100 $ 797,500 $ Prop 218 Rate Period
Exhibit 1 (O&M), 8 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA EXHIBIT 1

STORM DRAIN RATE STUDY
Operating Revenue and Expenses
TABLE 7 : OPERATING EXPENSE FORECAST
1 Budget
DESCRIPTION Basis 2021 2022 2023 2024 2025 2026

DRAINAGE CAPITAL OUTLAY
Capital Outlay
Construction/Infrastructure 7 - $ - $ - $ - $ - $ - $
Subtotal - $ - $ - $ - $ - $ - $
Sub-Total: Drainage Capital Outlay - $ - $ - $ - $ - $ - $ Depreciation (Non-cash item left out of analysis)
3 Depreciation/Replacement 7 328,927 $ 328,900 $ 328,900 $ 328,900 $ 328,900 $ 328,900 $ Subtotal 328,927 $ 328,900 $ 328,900 $ 328,900 $ 328,900 $ 328,900 $ GRAND TOTAL: STORM DRAIN OPERATING EXPENSES 749,310 $ 776,800 $ 805,800 $ 835,900 $ 867,400 $ 900,500 $ TABLE 8 : FORECASTING ASSUMPTIONS

INFLATION FACTORS
4 Basis 2021 2022 2023 2024 2025 2026
Customer Growth 1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Salaries 2 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Benefits 3 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
General Inflation 4 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Fuel 5 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Electricity 6 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
No Escalation 7 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenue and expenses for FY 2019/20 through FY 2020/21 are from source file: Enterprise Funds Budget 2020-21.pdf, pages 56-58.

2. Interest income is calculated in the Financial Plan and excluded from this table.

3. Depreciation expense is not considered in this projection since it is not a cash expense.

4. Inflation values follow assumptions made in water and sewer rate study from 2015.

Source file: Rate Study 2015.pdf, Table 1-1, Page 12.

Prop 218 Rate Period
Exhibit 1 (O&M), 9 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
-----
- -
~- -
-
CITY OF MADERA EXHIBIT 2

STORM DRAIN RATE STUDY
Capital Improvement Plan Expenditures
TABLE 9 : CAPITAL FUNDING SUMMARY 5-Year Rate Period
CAPITAL FUNDING FORECAST Budget
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Grants - $ - $ - $ - $ - $ - $
Use of Capacity Fee Reserves - - - - - -
SRF Loan Funding - - - - - -
Use of New Revenue Bond Proceeds - - - - - -
Use of Capital Rehabilitation and Replacement Reserve - - 200,000 - - 45,152 Rate Revenue - $ - $ - $ 205,000 $ 210,125 $ 170,226 $
Total Sources of Capital Funds - $ - $ 200,000 $ 205,000 $ 210,125 $ 215,378 $ Uses of Capital Funds:

Total Project Costs - $ - $ 200,000 $ 205,000 $ 210,125 $ 215,378 $ Capital Funding Surplus (Deficiency) - $ - $ - $ - $ - $ - $ Bank Loan - $ - $ - $ - $ - $ - $
New Revenue Bond Proceeds - $ - $ - $ - $ - $ - $

CAPITAL IMPROVEMENT PROGRAM
TABLE 10 : CAPITAL IMPROVEMENT PROGRAM COSTS (current-year dollars) 5-Year Rate Period Project # Storm Drain System Improvements 2021 2022 2023 2024 2025 2026 RSW10A 30” SD Pipe in Lake Street from Clark to Wessmith 100,000 $ RSW06 30” SD Pipe in Lake Street from 80’ north of Kennedy to Clark 100,000 $ Future Projects 200,000 $ 200,000 $ 200,000 $
Total: CIP Program Costs (Current-Year Dollars) - $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ TABLE 11 : CAPITAL IMPROVEMENT PROGRAM COSTS (future-year dollars) Project Description 2021 2022 2023 2024 2025 2026
RSW10A 30” SD Pipe in Lake Street from Clark to Wessmith - $ - $ 100,000 $ - $ - $ - $ RSW06 30” SD Pipe in Lake Street from 80’ north of Kennedy to Clark - - 100,000 - - - -- Future Projects - - - 205,000 210,125 215,378
Total: CIP Program Costs (Future-Year Dollars) - $ - $ 200,000 $ 205,000 $ 210,125 $ 215,378 $ TABLE 12 : FORECASTING ASSUMPTIONS
Economic Variables 2021 2022 2023 2024 2025 2026

0.00% 0.00% 0.00% 2.50% 2.50% 2.50%
Cumulative Construction Cost Multiplier from 2021 1.00 1.00 1.00 1.03 1.05 1.08

1. Construction inflator is based on the most current 10 year average of the Engineering News-Record Construction Cost Index.

Source: www.enr.com/economics (August 2010 to August 2020).

Funding Sources:

Annual Construction Cost Inflation, Per Engineering News Record 1 Projected
Exhibit 2 (CIP), 10 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
-

CITY OF MADERA

STORM DRAIN RATE STUDY
Storm Drain Rates Under Existing Rate Schedule
TABLE 13 : CURRENT STORM DRAINAGE RATE SCHEDULE
Current Monthly Rates
1 Effective
Dec. 21, 1992
Single Family Residential
per month $2.00
Multi Family Residential
Equal or less than 40 units
per square foot, $0.002
maximum per month $80.00
Greater than 40 & equal or less than 80 units
per square foot, $0.002
maximum per month $160.00
Greater than 81 units
per square foot, $0.002
maximum per month $240.00
Non-Residential (Except Churches)
per square foot of ground floor, $0.004
maximum per month $80.00
Non-Residential (Churches)
per square foot of ground floor, $0.002
maximum per month $80.00

1. Monthly service fee per Resolution 92-120. Source file: Drainage.pdf Exhibit 3 (Current Rates), 11 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA Allocation Factors

STORM DRAIN RATE STUDY
Storm Drain Cost of Service Analysis
TABLE 14
Customer Class
Number of
Accounts
1 Percent of
Total
Square
Footage
Estimate
Percent of
Total
Single Family Residential 13,585 94.4% n/a
Multi Family Residential 4 0.0% 938,745 14.5%
Non-Residential 799 5.6% 5,532,315 85.5%
Total 14,388 100.0% 6,471,060 100.0%

1. Number of accounts from Oct. 2020 & square footage estimate from source files:

MAIS Meter Usage 12 Months_Manipulated_02.06.21.xlsx,
2020 SEP-NOV MUNIS Billing2_Manipulated.xlsx, 2020 DEC MUNIS Billing_Manipulated.xlsx TABLE 15
Customer Class 2020 Revenue
Percent of
Total
Single Family Residential 415,808 $ 61.1%
Multi Family Residential 12,919 $ 1.9%
Non-Residential 251,973 $ 37.0%
Total 680,699 $ 100%

1. 2020 revenue found in source files: MAIS Meter Usage 12 Months_Manipulated_02.06.21.xlsx, 2020 SEP-NOV MUNIS Billing2_Manipulated.xlsx, 2020 DEC MUNIS Billing_Manipulated.xlsx Allocation Factors, 12 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA Proposed Fixed Charges

STORM DRAIN RATE STUDY
Storm Drain Cost of Service Analysis/Rate Design
TABLE 16 : SUMMARY OF RATE CALCULATION
Customer Classes
FY 2021/22
Net Revenue
Requirement
Number of
Accounts
Square
Footage
Estimate
By Account
Monthly
Charge
By Sq. Ft.

Monthly
Charge
Max Sq. Ft.

Based on
Current Rates
Max Monthly
Rate
Proposed Storm Drain Monthly User Charges
math formula a b c d = b / a e = c / a f g = f * e
Single Family Residential 476,147 $ 13,585 n/a 2.92 $ n/a n/a n/a Multi Family Residential 14,793 $ 4 938,745 n/a 0.002 $ 40,000 80.00 $ 40 units to 80 units - - - n/a 0.002 $ 80,000 160.00 $
Over 81 units - - - n/a 0.002 $ 120,000 240.00 $
Non-Residential 288,538 $ 799 5,532,315 n/a 0.005 $ 20,000 100.00 $ Total Net Revenue Requirement 779,478 $ 14,388 6,471,060 Rate Calculation, 13 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
CITY OF MADERA Current & Proposed Rates

STORM DRAIN RATE STUDY
Storm Drain Cost of Service Analysis/Rate Design
TABLE 17 : CURRENT VS. PROPOSED STORM DRAIN RATES
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Proposed Monthly Usage Charge
Single Family Residential
per month $2.00 $2.92 $3.36 $3.86 $4.44 $5.11
Multi Family Residential
Equal or less than 40 units
per square foot, $0.002 $0.002 $0.003 $0.004 $0.005 $0.006 maximum per month $80.00 $80.00 $92.00 $106.00 $122.00 $140.00 Greater than 40 & equal or less than 80
units
per square foot, $0.002 $0.002 $0.003 $0.004 $0.005 $0.006 maximum per month $160.00 $160.00 $184.00 $212.00 $244.00 $281.00 Greater than 81 units
per square foot, $0.002 $0.002 $0.003 $0.004 $0.005 $0.006 maximum per month $240.00 $240.00 $276.00 $317.00 $365.00 $420.00 Non-Residential (Including Churches)
per square foot of ground floor, $0.004 $0.005 $0.006 $0.007 $0.009 $0.011 maximum per month $80.00 $100.00 $115.00 $132.00 $152.00 $175.00 Current
Rates
Proposed Rates
Storm Drain Rate Schedule
Current & Proposed Rates, 14 of 15 Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516
Prepared by NBS
Web: www.nbsgov.com | Toll-Free:800.676.7516 SFR Bill Comp, 15 of 15 $2.00
$2.92
$3.36
$3.86
$4.44
$5.11
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Current FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Single-Family Residential Storm Drain Bill Comparison
Current vs. Proposed Monthly Rates

OFFICE LOCATIONS:

Temecula – Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
San Francisco – Regional Office
870 Market Street, Suite 1223
San Francisco, CA 94102
www.nbsgov.com

DRAFT REPORT
Solid Waste Rate Study
January 2022
Aerial view of City of Madera
via Google Earth

CITY OF
MADERA
0 NBS helplng communltlea fund tomorrow

TABLE OF CONTENTS
Purpose and Overview of the Study................................................................... 1 A. Purpose ........................................................................................................................... 1 B. Overview of the Study..................................................................................................... 1 Solid Waste Rate Study ..................................................................................... 4 A. Key Solid Waste Rate Study Issues.................................................................................. 4 B. Financial Plan................................................................................................................... 4 C. Cost of Service Analysis................................................................................................... 7 D. Rate Design Analysis.....................................................................................................10 E. Proposed Solid Waste Rates..........................................................................................11 F. Comparison of Current and Proposed Solid Waste Monthly Bills ................................14 Recommendations and Next Steps .................................................................. 16 A. Consultant Recommendations......................................................................................16 B. Next Steps .....................................................................................................................16 C. NBS’ Principal Assumptions and Considerations ..........................................................16 Appendix: Detailed Solid Waste Rate Study Tables and Figures Section 1.

Section 2.

Section 3.

TABLE OF FIGURES
Figure 1. Summary of Solid Waste Revenue Requirements .................................................................. 5 Figure 2. Summary of Solid Waste Operating Reserve .......................................................................... 5 Figure 3. Summary of Solid Waste Revenue Requirements .................................................................. 6 Figure 4. Summary of Solid Waste Operating Reserve .......................................................................... 6 Figure 5. Summary of Current Rate Revenue & Costs of Mid Valley Services....................................... 9 Figure 6. Summary of Components of the Revenue Requirements...................................................... 9 Figure 7. Summary of Proposed Rate Revenue...................................................................................... 9 Figure 8. Solid Waste Rates for Standard (96-Gallon) Container Services........................................... 11 Figure 9. Solid Waste Rates for Commercial Bin Services.................................................................... 12 Figure 10. Solid Waste Rates for Commercial Recyclables & Compactor Services.............................. 13 Figure 11. Solid Waste Rates for Other Commercial Services ............................................................. 13 Figure 12. Solid Waste Rates - Residential Customers......................................................................... 14 Figure 13. Details of Single-Family Solid Waste Rates......................................................................... 14 Figure 14. Solid Waste Rates - Commercial Bin Services..................................................................... 15 City of Madera – Solid Waste Rate Study 1

PURPOSE AND OVERVIEW OF THE STUDY
A. Purpose
The City of Madera (City) provides solid waste collection and disposal services through a franchise agreement with Mid Valley Disposal (Mid Valley) and last updated its solid waste rates in 2017, although the City has not performed a rate study in many years. Recent Proposition 2181 (Prop 218) related court decisions2 required the City to demonstrate the cost-basis of new rates, which must then be approved through Prop 218 noticing procedures.

To demonstrate this cost-basis, this comprehensive solid waste rate study evaluates revenue requirements and the estimated costs of collection and disposal services. Key objectives in this analysis include improving the fairness and equity among various customer classes and service levels and the defensibility of the City’s rates. However, the most significant change is the cost the City will incur to comply with new State regulations3
(SB 1383) related to organics recycling programs, which is currently estimated to increase overall costs by approximately 35 percent. The recommended rates were developed in a manner that is consistent with industry standard cost-of-service principles and include a general SB 1383 surcharge. This surcharge may be adjusted later once actual costs and changes in services provided to customers are better understood. By documenting the rate study methodology and cost-of-service analysis, this report provides the necessary support for the Prop 218 approval process and helps the City maintain transparent communications with its residential and commercial solid waste customers.

NBS worked cooperatively with City and Mid Valley staff to develop collection and disposal costs assumptions.

An overview of the rate study methodology is summarized below.

B. Overview of the Study
Comprehensive rate studies, whether for a water, sewer, or solid waste utility, include three key components:

1. Financial Plan, which identifies the current and projected costs and revenues, including the City’s administrative and overhead costs, and the annual net revenue requirements for the solid waste utility that must be collected through solid waste rates.

2. Cost of Service Analysis, which determines the cost of providing service to each customer class and service level, such as the standard three-container service to residential customers vs. commercial types of service, such as two-cubic yard bin service with once-per-week pickups.

3. Rate Design Analysis, unlike water and sewer rate studies, which evaluate different alternatives for fixed and variable charges, solid waste rates are driven by the collection and disposal costs for each type of service, which are combined into a single fixed monthly charge4 .
1 California Constitution article XIII D, Section 6, commonly referred to as Proposition 218 [Prop 218]. 2 For example, the San Juan Capistrano court case (Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano, Opinion G048969, Superior Ct. No 30-2012-00594579, Filed April 20, 2015). 3 California Code of Regulations, Title 14, Division 7, Chapter 3, Article 6.0. 4 There is also a separate Administrative Fee, primarily for container replacement, collected from residential customers.

SECTION 1.

City of Madera – Solid Waste Rate Study 2
These three components embody the industry standards and fundamental cost-of-service rate making principles detailed in the American Water Works Association (AWWA) Principles of Water Rates, Fees, and Charges5
, also referred to as the M1 Manual. They also represent the order in which the study was performed.

This methodology meets the Prop 218 requirements that rates not exceed the cost of providing the service, and that the rates are proportionate to the cost of providing service for all customers. That is, rates for one customer class do not subsidize the rates for another customer class.

The following sections briefly summarize each of the three study components, including the methodologies and general assumptions used in developing recommended solid waste rates. Section 2 then provides more detailed results, and the Appendix provides full documentation of how rates were developed.

FINANCIAL PLAN
NBS projected revenues and expenditures on a cash-basis for the next five years based on City budgets. The amount of rate revenue required to meet annual costs and maintain reserves at or near the recommended levels, is known as the net revenue requirement. As current rate revenue falls short of the net revenue requirement, rate adjustments -- or more accurately, adjustments in the total revenue collected from rates – are recommended. There is also a question about whether the City wants to include the costs of street sweeping services in solid waste revenue requirements and whether the Administrative Fee (Admin Fee) the City currently pays to Mid Valley should be collected from residential customers.6

COST OF SERVICE
As noted above, cost-of-service principles are generally the same whether applied to water, sewer, or solid waste rates. Since Prop 218 requires that solid waste rates demonstrate the cost basis for the monthly charges, this study relied on the best available assumptions about these costs7 , including waste volumes
and densities, time spent on collection routes, and the differences between the costs of residential vs. commercial vs. recyclable services and various other types of service.

As with any rate study, there are limits to the level of detail on individual customers and customer classes.

For example: (1) individual residential solid waste customers dispose various amounts of trash and other materials, some more than the average and some less; (2) a particular commercial customer (say a 2-Cubic Yard (CY) bin picked up once per week) may dispose twice the average trash and/or may be located significantly farther from the normal commercial route.

While costs for individual customers may be more or less than average, cost-of-service analysis treats these customers as a “customer class”, regardless of these individual differences. For example, standard single-family rates assume that all customers dispose of the same amount of trash, recyclables and green waste, and that differences in Mid Valley’s travel distances to individual customers are not a factor in their rate. Likewise, all 2-CY bin commercial customers are assumed to dispose the average amount of trash.

Otherwise, customer class rates would devolve into different rates for every single customer, for which there is insufficient data, and which is not administratively or practically feasible even if there was sufficient data.
5 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, M1, AWWA, seventh edition, 2017. 6 The City currently pays Mid Valley this fee for residential customers but does not collect it from these customers. 7 Many assumptions were provided by Mid Valley Disposal based on their experience and actual costs.

City of Madera – Solid Waste Rate Study 3
Additionally, general guidance on rate setting practices include the following observation: (1) rates do not need to be determined on a “parcel-by-parcel” basis but can be grouped and calculated on a “class-byclass” basis; (2) “apportionment” (i.e., allocation of costs) is not a determination that lends itself to a precise calculation; (3) apportionment in accordance with the City’s informal, best cost estimates is sufficient, and (4) ratemaking data does not need to be perfect.8 Regarding the SB 1383 surcharge, this surcharge was calculated as a 35-percent across-the-board increase in proposed new solid waste rates. This assumes that this new regulation provides new services and environmentally based benefits to solid waste customers on a broad basis vs. specific new services (and benefits) to just a limited number of customers. Once the actual costs and specific programs are better understood, the City may need to refine this surcharge in terms of the total costs recovered and/or how it is allocated to individual customer classes.

RATE DESIGN
Rate design for solid waste rates is a far less complicated analysis than for water or sewer rates, where tradeoffs between fixed and volumetric charges must be considered. In contrast, solid waste rates are 100-percent “fixed” in that they use a single monthly rate that includes both collection and disposal for each type of service. However, several of the more generic criteria documented in various rate-setting manuals9 are typically considered in setting solid waste rates, including pricing policies, theories, and economic concepts.

The following are the rate design attributes applicable to a sound solid waste rate structure:
• Rates are easy to understand from the customer’s perspective. • Rates are easy to administer from the utility’s perspective. • Rates are equitable and non-discriminating (that is, cost based). • There is continuity in the ratemaking philosophy over time. • Rates should address other utility policies (for example, encouraging waste reduction, recycling, and the economic development of the community).
• Rates should provide month-to-month and year-to-year revenue stability.

REGULATORY ISSUES
State regulations, beginning with AB 929 in 1989, have promoted waste reduction and recycling for the purpose of preserving landfill capacities and increasing the quantity of recyclable materials reused. The key regulatory issue the City is currently facing is SB 1383 which was recently adopted and mandates significant new organics and food waste recycling programs. These extensive regulatory mandates have an initial (Tier 1) implementation date of January 1, 2022. Mid Valley and the City are currently discussing how to meet these requirements, and Mid Valley has stated that these new programs typically increase overall costs by 35-40 percent. Although NBS is recommending the City implement an SB 1383 surcharge of 35 percent, these implementation discussions will play a role in future rate increases and the currently proposed surcharge may be adjusted as needed.
8 ACWA Board of Directors’ Workshop Agenda Packet, July 30, 2015, Kelly Salt, Partner, Best Best & Krieger, LLP, pp. 6 and 8 of 95. 9 Such as the American Water Works Association (AWWA) Manual M1.

City of Madera – Solid Waste Rate Study 4

SOLID WASTE RATE STUDY
A. Key Solid Waste Rate Study Issues
The City’s solid waste rate analysis was undertaken with a few specific objectives, including:
• Maintaining annual revenues needed to sufficiently fund operational expenditures, including salaries and benefits of City staff, overhead/interfund charges, and regulatory compliance programs. • Maintaining reserve fund levels to ensure future financial stability for the solid waste utility. • Continuing to encourage recycling and waste reduction. • Providing revenue stability for the Utility, particularly considering new regulatory mandates imposed by the State, such as SB 1383.
• Complying with Prop 218 requirements to ensure cost are properly allocated among customer classes and service levels.

The rate structure NBS proposed relied on these industry standards and cost-of-service principles. The recommended rates were calculated based on the net revenue requirements, number of customer accounts, and various assumptions and data provided by the City and Mid Valley.

B. Financial Plan
Besides meeting the overall goal of providing sufficient revenue to meet annual operating and regulatory costs, financial plans also strive to maintain reasonable reserves to handle emergencies and follow sound financial management practices to ensure the financial health of the solid waste utility. Rate adjustments are governed by the need to meet these objectives. The current financial status of the City’s solid waste utility is as follows:
• Meeting Net Revenue Requirements: For Fiscal Year (FY) 2021/22 through FY 2025/26, the average projected net revenue requirement is approximately $6 million per year. If no rate increases are implemented, the annual deficits are projected to grow from $1 million in FY 2021/22 to $2 million by FY 2025/26.
• Operating Reserve Funds: The operating reserve provides for fiscal emergencies such as revenue shortfalls or, more likely in the solid waste utility’s case, unfunded regulatory mandates. The utility’s operating reserve is considered an unrestricted reserve. Although this reserve would normally only need to be about 10 percent of annual operating expenses (given that over 60 percent of expenses are payments to Mid Valley), the utility should maintain a reserve balance of closer to 30 percent as a short-term funding backstop for SB 1383 compliance. This amounts to approximately $1.8 million.

Without rate increases, the ending balance of the operating reserves would go negative by more than $7 million.
• Inflation and Growth Projections: Projected future revenue and expense assumptions were made based on current expectations, including the ongoing impacts of the Covid 19 pandemic and what appear to be accelerating inflation.
• Although the City has some population growth, customer growth is conservatively assumed to be 0 percent.
• General inflation is assumed to be 3 percent annually. • Growth in City salaries and benefits are assumed to be 1.5 percent per year.

SECTION 2.

City of Madera – Solid Waste Rate Study 5
• Contractor Payments: Mid Valley payments are the largest single expense and is projected assuming a general inflation rate of 3 percent annually. However, as noted above, the cost of compliance with SB 1383 will be a significant cost increase that has not yet been defined and is not included in these projections. Once the City has a better understanding of those costs, a significant future adjustment will likely be needed.

Rate revenue increases of ten percent (10 percent) in FY 2021/22 through FY 2024/25 and four percent (4 percent) in FY 2025/26, will adequately fund operating expenses and, while maintaining less-than-optimal reserves, fixes the trending deficit and recommended levels will be achieved a few years after this five-year period. Figure 1 summarizes the sources and uses of funds, net revenue requirements, and the recommended annual rate increases for the next five years. These projections do not include the assumed 35 percent surcharge needed to pay for the SB 1383 mandated costs.

Figure 1. Summary of Solid Waste Revenue Requirements
Figure 2 summarizes the projected reserve balances and targets for the solid waste utility’s operating reserve.

A more detailed version of the proposed 5-year financial plan is included in the Appendix. As Figure 2 shows, reserves will meet the minimum target for all projected years. Figures 3 and 4 graphically show the revenues and expenses and the reserve fund balances with and without rate increases.

Figure 2. Summary of Solid Waste Operating Reserve
Projection Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Sources of Solid Waste Funds
Disposal Collection Fees $ 5,035,107 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 Street Sweeping Fees 444,880 406,637 406,637 406,637 406,637 406,637 406,637 Other Charges & Interest Income 399,557 445,914 156,133 134,996 134,726 134,726 141,150 Total Sources of Funds $ 5,879,544 $ 6,118,888 $ 5,829,107 $ 5,807,970 $ 5,807,700 $ 5,807,700 $ 5,814,124 Uses of Solid Waste Funds
Materials & Services $ 4,839,643 $ 4,630,784 $ 4,769,391 $ 4,912,055 $ 5,058,997 $ 5,210,344 $ 5,366,228 Street Cleaning $ 560,560 $ 504,904 $ 516,021 $ 527,417 $ 539,098 $ 551,074 $ 563,351 Transfer Out $ 780,494 $ 780,494 $ 780,494 $ 780,494 $ 780,494 $ 780,494 $ 780,494 Interfund Charges $ 470,530 $ 470,006 $ 484,106 $ 498,629 $ 513,588 $ 528,996 $ 544,866 Salaries & Benefits $ 289,754 $ 322,358 $ 327,193 $ 332,101 $ 337,083 $ 342,139 $ 347,271 Operating Expenses: $ 17,894 $ 214,678 $ 219,929 $ 225,319 $ 230,853 $ 236,535 $ 242,369 Total Uses of Funds $ 6,958,875 $ 6,923,224 $ 7,097,135 $ 7,276,016 $ 7,460,114 $ 7,649,581 $ 7,844,578 Surplus (Deficiency) before Rate Increase $ (1,079,331) $ (804,336) $ (1,268,028) $ (1,468,046) $ (1,652,414) $ (1,841,881) $ (2,030,454) Additional Revenue from Rate Increases $ - $ - $ 131,658 $ 1,105,931 $ 1,743,158 $ 2,444,107 $ 2,752,525 Surplus (Deficiency) after Rate Increase $ (1,079,331) $ (804,336) $ (1,136,370) $ (362,115) $ 90,744 $ 602,226 $ 722,070 Increase in Annual Rate Revenue 0.00% 0.00% 10.00% 10.00% 10.00% 10.00% 4.00% Cumulative Increases 0.00% 0.00% 10.00% 21.00% 33.10% 46.41% 52.27% Net Revenue Requirement 1 $ 6,114,438 $ 6,070,673 $ 6,534,365 $ 6,734,383 $ 6,918,751 $ 7,108,218 $ 7,296,791 Total Rate Revenue After Rate Increases $ 5,035,107 $ 5,266,337 $ 5,397,995 $ 6,372,268 $ 7,009,495 $ 7,710,444 $ 8,018,862

1. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from solid waste rates.

Summary of Sources and Uses of Funds and
Net Revenue Requirements
Projected
Projection Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 O&M Reserve Fund
O&M Reserve Fund Ending Balance $ 1,955,229 $ 1,150,893 $ 14,523 $ (347,592) $ (256,849) $ 345,377 $ 1,067,447 O&M Reserve Fund Minimum Target 1,740,000 1,730,000 1,770,000 1,820,000 1,870,000 1,910,000 1,960,000 Total Ending Reserves - Proposed Rates $ 1,955,229 $ 1,150,893 $ 14,523 $ (347,592) $ (256,849) $ 345,377 $ 1,067,447 Total Ending Balance w/o Rate Increases $ 1,955,229 $ 1,150,893 $ (117,135) $ (1,585,182) $ (3,237,595) $ (5,079,477) $ (7,109,931) Minimum Reserve Target $ 1,740,000 $ 1,730,000 $ 1,770,000 $ 1,820,000 $ 1,870,000 $ 1,910,000 $ 1,960,000

1. Beginning cash balance for the Soild Waste Fund is found in CAFR. Source File: FY-2018-2019-Comprehensive-Annual-Financial-Report.pdf, Page 42.

2. NBS recommends Solid Waste Fund will maintain a minimum of 90 days operating budget in reserves.

3. District's actual or budgeted interest earnings are used in analysis for unrestricted reserves in FY 2020/21. For 2021/22 and beyond, interest earning rates are estimated at the 3-year average (FY '17/18 - '19/20) for funds invested in LAIF, per the California Treasurer's Office website, for the restricted reserves.

Ending Reserve Fund Balances and
Recommended Reserve Targets
Projected
City of Madera – Solid Waste Rate Study 6
Figure 3. Summary of Solid Waste Revenue Requirements
Figure 4. Summary of Solid Waste Operating Reserve
$0 mil.
$1 mil.
$2 mil.
$3 mil.
$4 mil.
$5 mil.
$6 mil.
$7 mil.
$8 mil.
$9 mil.
2021 2022 2023 2024 2025 2026
Total Obligations
Fiscal Year Ending June 30
Solid Waste Revenue Requirements vs.

Revenue Under Existing and Recommended Rate Increases
O&M Expenses
Revenues under Existing Rates
Revenues under Proposed Rates
$1.96
$1.15
$0.01
-$0.35 -$0.26
$0.35
$1.07
$1.96
$1.15
-$0.12
-$1.59
-$3.24
-$5.08
-$7.11
-$8.00
-$7.00
-$6.00
-$5.00
-$4.00
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
2020 2021 2022 2023 2024 2025 2026
Ending Reserves ($ mil.)
Fiscal Year Ending June 30
Ending Cash Balance vs. Recommended Reserve Targets
Total Ending Reserves - Proposed Rates
Total Ending Balance w/o Rate Increases
Minimum Reserve Target
--
City of Madera – Solid Waste Rate Study 7
C. Cost of Service Analysis
Once the total net revenue requirements are determined, the cost-of-service analysis determinesthe revenue collected from each customer class. The three major components of the cost-of-service analysis are collection and disposal expenses and the City’s administrative and overhead costs. Since the City contracts for collection and disposal services with Mid Valley, the City does not have direct access to individual field operation costs such as driver salaries and benefits, cost of collection vehicles, general overhead, and profit. Those costs are embodied in the City’s agreement with Mid Valley, but a detailed breakdown of those costs is not available.

The following is a description of the methodology followed to establish cost-based solid waste rates.

SOLID WASTE RATE METHODOLOGY
The intent of the cost of service is to anchor rates to a cost basis reasonably reflecting actual costs. Since current rates have not been updated in many years and there is no clear record of how they were originally set, some of the new rates may be quite different than the current rate.

Residential and Commercial Customer Accounts – Standard residential service, which includes three 96- gallon containers (grey for trash, blue for recyclables, and green for yardwaste/organics), account for 84 percent of all solid waste accounts10. Typical commercial service varies by size of the bin (from 2-CY to 6-CY, and from once-per-week [1x/week] collection to six-days-per-week [6x/week]). There are also miscellaneous rates for individual containers, recyclable bins, compactor bins, and organics bins. These other rates are a small part of the overall solid waste rate revenues but are included in the various rate tables below.

Initial Rates – In general, disposal costs, which are based on discussions with Mid Valley, were calculated first.

Disposal costs are assumed to be approximately 20 percent of overall rates. The remaining 80 percent is assumed to be a collection-related cost. There was no attempt to identify costs related to Mid Valley’s overhead and/or profit, since those are proprietary costs and are embedded in the contracted rates the City pays Mid Valley under the franchise agreement.

True-Up Adjustments – Finally, since initial rate calculations are estimates of the actual collection and disposal costs, the revenue generated by these rates needs to be “trued-up” to the total net revenue requirement shown in the financial plan. To do this, separate across-the-board adjustments were used to calibrate the amount of rate revenue collected from residential customers, commercial bins service, and the remaining commercial customer classes.

Mid Valley estimated that 66 percent of systemwide costs are for residential service, while commercial accounts for the remaining 34 percent. Commercial bin service accounts for about 26 percent of the total revenue, with all other commercial classes making up about 8 percent of the total. Therefore, adjustments within each of these classes of customers (i.e., residential, commercial bin service, and all other commercial) were made to calibrate the rate revenues with the net revenue requirements. This approach maintains the overall cost basis between customer classes (i.e., they maintain fair and equitable shares of overall revenue), and thereby meets broader cost-of-service equity and fairness objectives.

The following is a more detailed description of the assumptions used and the rate calculations performed.

Disposal Costs – General assumptions are that trash weighs 125 lbs. per cubic yard and tipping fees are $28/ton. According to Mid Valley, disposal costs for green waste and recyclables are approximately same as trash disposal, although we have set recyclables disposal costs at less than the cost for trash disposal because 10 There are 13,822 standard residential accounts vs. 16,405 total accounts.

City of Madera – Solid Waste Rate Study 8
of the need to promote waste reduction and recycling. Since the City is mandated to achieve recycling and waste reduction goals, solid waste rates need to encourage this mandate. Industry standards for cost-ofservice analysis allows for adjustments such as these with the broader intent of ensuring that rates within each customer class are not subsidizing costs of other customer classes. Also, most recyclable costs are bundled along with standard residential service rates. All collection containers/bins are assumed to have the same amount of material (whether trash, green waste, organics, or recyclables). Lastly, commercial compactors are assumed to have a 3:1 density ratio (i.e., 375 lbs./CY vs. 125 lbs. for uncompacted trash).

Collection Costs – Residential and commercial collection costs for a 96-gallon container are assumed to be the same regardless of type of container (grey/green/blue), and larger containers (i.e., 2 CY – 6 CY bins) are assumed to be similar regardless of container size (i.e., while disposal costs directly correlate to size, the collection costs do not). However, there are cost differences between standard residential service and commercial bins service, based on assumptions provided by Mid Valley. For example, residential 96-gallon collection generally involves short travel distances between customers whereas commercial bin service customers on average are far more “spread out” than residential customers. Also, carry-out service takes significantly more driver time than an automated curbside pickup. We have relied on Mid Valley assumptions in setting the initial rates by type of service.

The 13,822 residential standard service customers have a current rate of $15.59/month, which is lower than the rate that the City pays Mid Valley. Therefore, the initial rate was set above the current rate before being adjusted to meet net revenue requirements. Mid Valley estimates that commercial bin rates for 1x/week service are artificially low and should be increased.11 In general, additional commercial pickups/week are assumed to be a straight multiple of the 1x/week service and “carryout” rates were assumed to be significantly higher than for automated curbside service, with the difference between automated and carryout assumed to be similar to the differences in current rates. For commercial compactor rates, although disposal costs reflect a 3:1 density ratio, collection costs are like those for commercial bins.

Administrative Fees – In 2018, the City transitioned certain services over to Mid Valley, including replacing residential containers and handling service calls. The City negotiated a Mid Valley reimbursement fee of $2.33/residential account for these services, which amounts to approximately $400,000 per year. The City has not collected this fee from customers in the past but needs to begin doing so going forward. This cost is already included in the net revenue requirements for FY 2021/22, since it is a part of the fees paid to Mid Valley.

Current Rate Revenue vs. the Costs of Mid Valley Services – Figure 5 below summarizes the estimated current solid waste rate revenue the City receives12 and the costs of Mid Valley services based on the most recent invoice for January 2021. This Figure shows that approximately 70 percent of the City-collected revenue comes from residential customers (vs. Mid Valley’s estimate that residential is about 66 percent of actual costs), while commercial customers account for about 30 percent of the revenue (vs. Mid Valley’s estimate that commercial represents about 34 percent of actual costs). The Mid Valley percentages are assumed to better represent the actual costs of service (based on discussions with City and Mid Valley staff). 11 The City’s rate for commercial 2-CY, 3-CY, and 6-CY with 1X/week service is less than what the City pays Mid Valley. For comparison, Mid Valley’s reimbursement rate for standard residential service is only 64 percent of the rate the City charges. 12 As the most recent financial data, the $5.375 million revenue shown in this figure is slightly higher than shown in the City budget (i.e., $5.266 million).

City of Madera – Solid Waste Rate Study 9
Figure 5. Summary of Current Rate Revenue & Costs of Mid Valley Services Proposed Revenue Requirements – Based on discussions with City staff, the new solid waste rates should include street sweeping costs and an SB 1383 surcharge. These costs would be allocated to all customers (i.e., residential and commercial), while the Admin Fee is only paid by the residential customers (i.e., single- and multi-family customers). Figure 6 summarizes these components of the revenue requirements and Figure 7 summarizes the total revenue generated by the new rates by customer class. These figures include the firstyear increase in total rate revenue, street sweeping costs, and the SB 1383 surcharge of 35 percent, totaling $7.8 million. These costs are discussed in more detail below.

Figure 6. Summary of Components of the Revenue Requirements Figure 7. Summary of Proposed Rate Revenue
City and Mid Valley Revenue From Current Rates - FY 2021/22 (Based on Jan '21 MVD Payment) Current Rates % of Total Contract Rate Admin Fees Total Revenue % of Total Single Family Residential $3,502,921 65.2% $2,498,240 $388,113 $2,886,352 63.5% $616,569 Multi-Family Residential $272,059 5.1% $92,440 $12,470 $104,910 2.3% $167,149 Total Residential $3,774,980 70.2% $2,590,679 $400,583 $2,991,262 65.8% $783,718 Commercial 96-Gal. Service $63,383 1.2% $41,020 $0 $41,020 0.9% $22,362 Commercial Bin Service $1,262,512 23.5% $1,185,682 $4,446 $1,190,127 26.2% $72,384 Commercial Recycling $247,890 4.6% $285,540 $0 $285,540 6.3% -$37,650 Commercial Compactor $6,580 0.1% $7,032 $0 $7,032 0.2% -$452 Commercial Organics $19,743 0.4% $28,624 $0 $28,624 0.6% -$8,881 Total Commercial $1,600,107 29.8% $1,547,899 $4,446 $1,552,344 34.2% $47,763 Total Revenue2
- FY 2021/22 $5,375,087 100.0% $4,138,578 $405,029 $4,543,607 100.0% $831,481

1. Overall allocation of residential vs. commercial revenue requirements is about 66%/34% per Mid Valley Disposal.

2. Total Revenue based on Current City rates and number of accounts as of January 2021.

Difference
(City - MVD
Rev.)
Customer Class City Rate Revenue Mid Valley Rate Revenue (Based on NBS Calculations)
$5,792,971 From Fin. Plan (Figure 1) - Includes proposed rate increase 1 ($400,583) Separately allocated to Single- and Multi-Family Resid. 2 $406,637 Offsets current Street Sweeping fees being collected 3 $5,799,025
$2,029,659 35% of Net Rev. Reqts.
$7,828,683 Excludes Admin Fees separately applied to Residential

1. Assume adoption April 1, 2022 means only 25% of the rate increse is collected in FY'21/22.

2. Calculated as $2.33/account times residential containers to which this fee applies. This is applied separately to these customers.

3. Street Sweeping fees from the Financial Plan. There are other street sweeping costs already included in Net Revenue Requirements.

SB 1383 Surcharge (35%)
Net Rev. Reqts. (from Financial Plan)
Street Sweeping Costs
Net Rev. Reqts. - Including Street Sweeping
Summary of FY'21/22 Solid Waste Costs
Net Rev. Reqts. - Incl. Street Sweeping & Surcharge
less Admin Fees (already included in the above)
Notes:

Allocated 66% to Residential, 34% Commercial
Customer Class Rate Revenue 1 % of Total 2 35% Surcharge Total Revenue % of Total Single Family Residential $3,692,620 63.7% $1,292,417 $4,985,038 63.7% Multi-Family Residential $134,736 2.3% $47,157 $181,893 2.3% Total Residential $3,827,356 66.0% $1,339,575 $5,166,931 66.0% Commercial 96-Gal. Service $68,453 1.2% $23,959 $92,412 1.2% Commercial Bin Service $1,519,344 26.2% $531,770 $2,051,114 26.2% Commercial Recycling $352,275 6.1% $123,296 $475,572 6.1% Commercial Compactor $2,262 0.0% $792 $3,053 0.0%
Commercial Organics $29,334 0.5% $10,267 $39,601 0.5%
Total Commercial $1,971,668 34.0% $690,084 $2,661,752 34.0% Total Revenue - FY 2021/22 $5,799,024 100.0% $2,029,658 $7,828,682 100.0%

1. Total Revenue based on Proposed Rates and number of accounts as of January 2021, including rate increases and Street Sweeping costs.

2. Overall allocation of residential vs. commercial revenue requirements is about 66%/34% per Mid Valley Disposal.

3. Admin Service Fees of $2.33/residential account will be separately added to residential customers rates.

Proposed Rate Revenue - FY 2021/22 INCLUDING STREET SWEEPING & 35% SURCHARGE City of Madera – Solid Waste Rate Study 10
Street Sweeping Fees – The City currently has a street sweeping fee of $0.0248 per foot of street exposure and a fee of $0.0125 for additional cleaning. The City currently expects to collect about $406,637 from these fees in FY 2021/22, although actual costs are approximately $660,000 with the difference of about $261,000 funded by the City’s General Fund and other Enterprise fund transfers. The nexus of the benefits of street cleaning to either the per-foot charges or the costs collected from various residential and commercial customers is not abundantly clear13, and NBS recommends incorporating the street sweeping costs into solid waste rates on a broader basis from all customers. While this would increase solid waste rates, it would also eliminate the current street sweeping charges.

The street sweeping program benefits solid waste customers in two ways: (1) the direct benefit to residents and businesses receiving the street/curb cleaning in front of their home and/or business and, (2) improved sanitation and trash removal in other public areas (streets) not necessarily tied to an individual solid waste customer. The nexus between these street sweeping benefits and the cost allocated to all solid waste customers would support including these costs on an across-the-board basis.

While there can also be a case made for allocating some of the street sweeping costs to water customers (related to protecting groundwater quality), or drainage customers (removing trash from streets helps reduce trash accumulating in drainage catch-basins thereby reducing flooding), the benefit seems more directly tied to solid waste customers. NBS recommends the City’s legal counsel review this approach before proceeding with adding street sweeping costs to solid waste rates.

SB 1383 Surcharges – As discussed above, compliance with SB 1383 is estimated to cost an additional 35-40 percent more than the revenue requirements shown previously in Figure 1. This 35 percent surcharge would generate an additional $2.0 million in revenue used to cover the cost of newly mandated SB 1383 programs.

D. Rate Design Analysis
As previously mentioned, the rate design for solid waste rates is a fixed charge tied to estimates of the actual costs for collection and disposal rather than the combinations of fixed and variable charges used in water rates. Also, rates are calculated on a customer class basis rather than for each individual customer. For example, most individual residential customers dispose of different amounts of trash than the average residential customer (i.e., its higher or lower than average), but rates are not tailored to individual customers.

The same is true for commercial customers; commercial services provide each customer with the opportunity or capacity to dispose of the volume of waste as defined by their container size, regardless of whether each customer fully utilizes that capacity.

The City’s current solid waste rates reflect the container size and the number of pickups per week, and NBS recommends that the City continue with this rate structure. Based on reasonable cost estimates and assumptions,
14 NBS updated the collection and disposal components of the rates and then calibrate these rates to match the revenue requirements that should be collected from each customer class (e.g., residential vs. commercial customers).

Also, the City’s current rate schedule includes “non-functional” rates for which there are either no customers and/or there are no plans to provide a type of service in the future. For example, there are only two compactor bins service accounts, but the rate schedule includes rates for multiple bin sizes (i.e., 2 CY, 3 CY, 4 13 The City has no formal documentation of how these rates were developed or the rationale for this approach. 14 The assumptions are primarily provided by Mid Valley staff and relate to systemwide collection and disposal practices and costs.

City of Madera – Solid Waste Rate Study 11
CY, 5 CY, and 6 CY) and pickups from 1X/week through 6X/week. Likewise, there are only two commercial 5 CY bin service accounts and Mid Valley will be phasing out this service and converting these customers to another size of bin.

Lastly, NBS is recommending the proposed solid waste rates include: (1) the Admin Fee that the City currently pays Mid Valley for each residential account but has not collected from customers; (2) street sweeping costs; and (3) the 35 percent SB 1383 surcharge. These costs were not previously included customer rates.

The following section outlines the results of the rate analysis and compares the current vs. proposed new solid waste rates that include the Admin Fee, street sweeping costs, and the 35 percent SB 1383 surcharges.

E. Proposed Solid Waste Rates
This section summarizes the current and proposed new rates. For purposes of clarity, we have excluded rates that currently have no customers. The Appendix includes more detailed rate schedules that include all the rates currently in the City’s rate schedule.

Figure 8 shows the monthly rates for residential and commercial customers receiving 96-gallon container service. The standard residential service, which includes over 90 percent of these services, includes three containers (trash, recyclables, and organics/green waste). Figure 9 shows the rates for commercial bin service, and Figures 10 and 11 shows the rates for other commercial services.

Figure 8. Solid Waste Rates for Standard (96-Gallon) Container Services (Including Admin Fees of $2.33/mo., Street Sweeping Costs, and 35 percent Surcharge) FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Single Family Residential
Three Standard Containers $ 23.22 $ 32.00 $ 34.97 $ 38.23 $ 41.82 $ 45.77 1/2 Resid. (Grey & Blue only) $ 16.02 $ 25.68 $ 28.02 $ 30.58 $ 33.41 $ 36.52 Additional Grey Container $ 4.73 $ 23.35 $ 25.69 $ 28.25 $ 31.08 $ 34.19 Additional Green Container $ 2.17 $ 8.27 $ 9.09 $ 10.00 $ 11.00 $ 12.11 Additional Blue Container $ 2.17 $ 8.27 $ 9.09 $ 10.00 $ 11.00 $ 12.11 Residential Carry-Out Service
Two Containers $ 55.32 $ 42.21 $ 46.20 $ 50.58 $ 55.41 $ 60.72 Each Additional Container $ 11.44 $ 16.54 $ 18.19 $ 20.01 $ 22.01 $ 24.21 Multi-Family Residential
First Two Dwelling Units (each) $ 23.22 $ 32.00 $ 34.97 $ 38.23 $ 41.82 $ 45.77 Each Additional Dwelling Unit $ 22.59 $ 29.45 $ 32.16 $ 35.14 $ 38.42 $ 42.03 Commercial
Two Containers $ 29.46 $ 42.21 $ 46.20 $ 50.58 $ 55.41 $ 60.72 Additional Container $ 40.85 $ 34.77 $ 38.25 $ 42.08 $ 46.28 $ 50.91 Commercial Carry-Out Service
Two Containers $ 57.64 $ 62.63 $ 68.66 $ 75.29 $ 82.59 $ 90.61 Each Additional Container $ 17.70 $ 30.15 $ 33.16 $ 36.48 $ 40.13 $ 44.14

1. Note: admin Fee only applies to initial service charges, not on additional containers.

Customer Classes/Service Type Current Rates
Proposed Rates
(Include Street Sweeping, Admin Fee & SB 1383 Surcharge) 1 City of Madera – Solid Waste Rate Study 12
Figure 9. Solid Waste Rates for Commercial Bin Services Current Rates
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Bin Service (Solid Waste)
2 Cubic Yard
1x per week $ 52.11 $ 146.72 $ 161.39 $ 177.53 $ 195.28 $ 214.81 2x per week $ 102.40 $ 200.07 $ 220.07 $ 242.08 $ 266.29 $ 292.92 3x per week $ 151.25 $ 265.42 $ 291.96 $ 321.16 $ 353.28 $ 388.60 4x per week $ 203.10 $ 346.38 $ 381.02 $ 419.12 $ 461.03 $ 507.14 5x per week $ 253.47 $ 447.63 $ 492.39 $ 541.63 $ 595.79 $ 655.37 3 Cubic Yard
1x per week $ 65.84 $ 153.38 $ 168.72 $ 185.59 $ 204.15 $ 224.57 2x per week $ 130.34 $ 213.40 $ 234.74 $ 258.22 $ 284.04 $ 312.45 3x per week $ 194.44 $ 285.43 $ 313.97 $ 345.37 $ 379.90 $ 417.90 4x per week $ 258.72 $ 373.06 $ 410.36 $ 451.40 $ 496.54 $ 546.19 5x per week $ 323.14 $ 480.97 $ 529.07 $ 581.98 $ 640.18 $ 704.19 4 Cubic Yard
1x per week $ 79.73 $ 160.05 $ 176.06 $ 193.66 $ 213.03 $ 234.33 2x per week $ 157.87 $ 226.74 $ 249.42 $ 274.36 $ 301.79 $ 331.97 3x per week $ 272.25 $ 305.43 $ 335.98 $ 369.58 $ 406.53 $ 447.19 4x per week $ 333.10 $ 399.73 $ 439.71 $ 483.68 $ 532.04 $ 585.25 5x per week $ 392.17 $ 514.32 $ 565.75 $ 622.32 $ 684.56 $ 753.01 5 Cubic Yard
3x per week $ 276.11 $ 325.44 $ 357.99 $ 393.78 $ 433.16 $ 476.48 6 Cubic Yard
1x per week $ 107.22 $ 173.39 $ 190.73 $ 209.80 $ 230.78 $ 253.86 2x per week $ 213.04 $ 253.42 $ 278.76 $ 306.64 $ 337.30 $ 371.03 3x per week $ 318.78 $ 345.45 $ 379.99 $ 417.99 $ 459.79 $ 505.77 5x per week $ 529.93 $ 581.01 $ 639.11 $ 703.02 $ 773.32 $ 850.65 Customer Classes/Service Type Proposed Rates (Include Street Sweeping & SB 1383 Surcharge) City of Madera – Solid Waste Rate Study 13
Figure 10. Solid Waste Rates for Commercial Recyclables & Compactor Services Figure 11. Solid Waste Rates for Other Commercial Services Current Rates
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Organic Waste (Include Street Sweeping & SB 1383 Surcharge) 96 Gallon Container
1x per week $ 10.28 $ 13.88 $ 15.26 $ 16.79 $ 18.47 $ 20.32 2x per week $ 20.57 $ 27.75 $ 30.53 $ 33.58 $ 36.94 $ 40.63 2 Cubic Yard Bin
1x per week $ 42.18 $ 60.32 $ 66.36 $ 72.99 $ 80.29 $ 88.32 2x per week $ 77.36 $ 120.65 $ 132.71 $ 145.98 $ 160.58 $ 176.64 3x per week $ 118.54 $ 180.97 $ 199.07 $ 218.98 $ 240.87 $ 264.96 3 Cubic Yard Bin
5x per week $ 243.84 $ 321.84 $ 354.02 $ 389.42 $ 428.36 $ 471.20 Miscellaneous Rates and Charges (Does Not Include Street Sweepig or SB 1383 Surcharge) Locking Service Fee (Optional) $10.00 10.00 $ $ 11.00 $ 12.10 $ 13.31 $ 14.64 Lost Lock Fee $15.00 15.00 $ $ 16.50 $ 18.15 $ 19.97 $ 21.96 New or Replacement Can $53.30 53.30 $ $ 58.63 $ 64.49 $ 70.94 $ 78.04 Delivery Charge $10.00 10.00 $ $ 11.00 $ 12.10 $ 13.31 $ 14.64 Street Cleaning Service
Per foot of street exposure $0.0248
Additional Cleaning per foot $0.0125 (Now Included in Solid Waste Rates) Customer Classes/Service Type Proposed Rates
Customer Classes/Service Type I Current Rates Proposed Rates {Include Street Sweeping & SB 1383 Surcharge) FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY2024/25 Bin Service (Recydables)
2CubicYard
lx per week $ 31.22 $ 65.08 $ 71. 58 $ 78.74 $ 86.62 $ 95.28 2x pe r wee k $ 55.98 $ 130.15 $ 143. 17 $ 157.49 $ 173.24 $ 190.56 3x per week $ 80.79 $ 195.23 $ 214.75 $ 236.23 $ 259.85 $ 285.84 3 Cubic Yard
1x per week $ 41.89 $ 76.70 $ 84.37 $ 92.81 $ 102.09 $ 112.30 2x per week $ 72. 72 $ 146.90 $ 161.59 $ 177.75 $ 195.52 $ 215.08 3x pe r wee k $ 109.38 $ 217.10 $ 238.81 $ 262.69 $ 288.96 $ 317.85 4Cubi cYard
1x per week $ 47.92 $ 83.99 $ 92.39 $ 101.63 $ 111.79 $ 122.97 2x per week $ 89.40 $ 159.31 $ 175.24 $ 192.76 $ 212.04 $ 233.24 3x per week $ 130.89 $ 234.62 $ 258.08 $ 283.89 $ 312.28 $ 343.51 6CubicYard
1x per week $ 64.58 $ 98.57 $ 108.43 $ 119.27 $ 131.20 $ 144.32 2x per week $ 118.12 $ 184.12 $ 202.53 $ 222.79 $ 245.07 $ 269.57 3x per week $ 171.54 $ 269.67 $ 296.64 $ 326.31 $ 358.94 $ 394.83 Compactor- Bin Service
3 Cubic Yard
3x per week $ 388.88 $ 166.71 $ 183.38 $ 201.72 $ 221.89 $ 244.08 4Cubi cYard
1x per wee k $ 159.46 $ 87.74 $ 96.52 $ 106.17 $ 116.79 $ 128.47 Roll-Off Container (Not a City rate)
25 Cubic Yard
Mon t hly Rent $ 181.13 $ 181.13 $ 199.24 $ 219.17 $ 241.08 $ 265.19 Per Load $ 185.25 $ 185.25 $ 203.78 $ 224.15 $ 246.57 $ 271.22 City of Madera – Solid Waste Rate Study 14
F. Comparison of Current and Proposed Solid Waste Monthly Bills Figure 12 compares the City’s current residential rates to the proposed rates with the street sweeping costs and SB 1383 surcharges. The proposed residential rates also include the Admin Fee of $2.33/account, which does not apply to accounts with additional containers. Figure 13 shows a detailed breakdown of the proposed single-family rate along with the current rate and the rate that the City pays Mid Valley. Figure 14 compares the City’s current commercial rates to the proposed rates with the street sweeping costs and SB 1383 surcharges.

Figure 12. Solid Waste Rates - Residential Customers
Figure 13. Details of Single-Family Solid Waste Rates
$23.22 $23.22 $22.59
$28.28 $28.28
$26.07
$29.67 $29.67
$27.12
$32.00 $32.00
$29.45
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Single Family Resid.
(Grey/Green/Blue)
Multi-Family Resid. (1st two Dwelling
Units)
Multi-Family Resid. (Add'l Dwelling
Units)
Residential Solid Waste Rates:

Current vs. Proposed vs. Proposed Rates Current
Proposed (w/o St. Sweeping or Surcharge)
Proposed (w/ Street Sweeping)
Proposed (w/ St. Sweep. & Surcharge)
MFR Add'l. Rates do not
include Admin. Fee of
$2.33/mo.
$23.22
$18.58
$2.33
$2.33
$2.34
$1.54
$1.86
$7.69
$0
$5
$10
$15
$20
$25
$30
$35
$40
Current Rate Proposed Rate
Customer Bills ($/month)
Single-Family Solid Waste Rates (Current vs. Proposed)
Basic Rate
Admin Fee
St. Sweeping*
Rate Increase
SB 1383 Surcharge
Proposed Rate
$32.00
$27.89
* Current street
sweeping charge is
total costs ÷ total
number of accounts
■
■
□
□
□
City of Madera – Solid Waste Rate Study 15
Figure 14. Solid Waste Rates - Commercial Bin Services
$52.11
$65.84
$107.22
$146.72 $153.38
$173.39
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2 CY - 1X/Week 3 CY - 1X/Week 6 CY - 1X/Week
Commercial Solid Waste Rates: Current vs. Proposed Rates □ Current Rates ■ Proposed w/ St. Sweeping & Surcharge
City of Madera – Solid Waste Rate Study 16

RECOMMENDATIONS AND NEXT STEPS
A. Consultant Recommendations
NBS recommends the City take the following actions:

Approve and Accept this Study: NBS recommends the City Council formally approve and adopt this Study and its recommendations and proceed with the steps required to implement the proposed rates. This will provide documentation of the rate study analyses and the basis for analyzing potential changes to future rates.

Implement Recommended Levels of Rate Adjustments and Proposed Rates: The Council should direct City staff to mail out Prop 218 notices to customers. Then, based on successfully meeting the Prop 218 procedural requirements, the Council should proceed with implementing the 5-year schedule of proposed rates and rate adjustments previously shown in Figures 8 through 11.
15 This will help ensure the continued financial health of the City’s solid waste utility.

Note: The attached Appendix provides more detailed information on the analysis of the solid waste revenue requirements and cost-of-service analyses that have been summarized in this report.

C. NBS’ Principal Assumptions and Considerations
In preparing this report and the opinions and recommendations included herein, NBS has relied on several principal assumptions and considerations regarding financial matters, conditions, and events that may occur in the future. This information and these assumptions, including City’s budgets, cost information and assumptions from Mid Valley and City staff were provided by sources we believe to be reliable, although NBS has not independently verified this data.

While we believe NBS’ use of such information and assumptions is reasonable for the purpose of this report and its recommendations, some assumptions will invariably not materialize as stated herein and may vary significantly due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary from those projected to the extent that actual future conditions differ from those assumed by us or provided to us by others.
15 Depending on whether the City intends to eliminate rates that have no customers or will be discontinued, the rates adopted would be either those shown in Figures 8 through 11 or the rate schedule shown in Appendix Table 30.

SECTION 3.

City of Madera – Solid Waste Rate Study B-1
Appendix: Detailed Solid Waste Study Tables and Figures The following tables and figures are presented in the order of the three rate study components previously mentioned in Section 1.B. (i.e., Financial Plan, Cost-of-Service Analysis, and Rate Design).

TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Projection Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Sources of Solid Waste Funds
Disposal Collection Fees $ 5,035,107 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 Sub-Total Rate Revenues: $ 5,035,107 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 Street Sweeping Fees $ 444,880 $ 406,637 $ 406,637 $ 406,637 $ 406,637 $ 406,637 $ 406,637 Other Charges for Services 65,281 16,545 16,545 16,545 16,545 16,545 16,545 Refunds 1,476 2,363 2,363 2,363 2,363 2,363 2,363
Fines & Forfeiture 79,197 115,818 115,818 115,818 115,818 115,818 115,818 Gains & Proceeds 2,747 - - - - - -
Transfers In 226,431 293,742 - - - - -
Interest Income 24,425 17,446 21,407 270 - - 6,424
Sub-Total Non-Rate Revenue $ 844,437 $ 852,551 $ 562,770 $ 541,633 $ 541,363 $ 541,363 $ 547,787 Total Solid Waste Revenues $ 5,879,544 $ 6,118,888 $ 5,829,107 $ 5,807,970 $ 5,807,700 $ 5,807,700 $ 5,814,124 Uses of Solid Waste Funds
Operating Expenses:

Salaries & Benefits $ 289,754 $ 322,358 $ 327,193 $ 332,101 $ 337,083 $ 342,139 $ 347,271 Materials & Services 4,839,643 4,630,784 4,769,391 4,912,055 5,058,997 5,210,344 5,366,228 Street Cleaning 560,560 504,904 516,021 527,417 539,098 551,074 563,351 Interfund Charges 470,530 470,006 484,106 498,629 513,588 528,996 544,866 Special Payments 17,519 79,303 80,493 81,700 82,925 84,169 85,432 Capital Outlay 375 135,375 139,436 143,619 147,928 152,366 156,937 Transfer Out 780,494 780,494 780,494 780,494 780,494 780,494 780,494 Total Solid Waste Operating Expenses $ 6,958,875 $ 6,923,224 $ 7,097,135 $ 7,276,016 $ 7,460,114 $ 7,649,581 $ 7,844,578 Annual Surplus/(Deficit) without rate increase $ (1,079,331) $ (804,336) $ (1,268,028) $ (1,468,046) $ (1,652,414) $ (1,841,881) $ (2,030,454) $ 6,114,438 $ 6,070,673 $ 6,534,365 $ 6,734,383 $ 6,918,751 $ 7,108,218 $ 7,296,791 Total Rate Revenue After Rate Increases $ 5,035,107 $ 5,266,337 $ 5,397,995 $ 6,372,268 $ 7,009,495 $ 7,710,444 $ 8,018,862 Annual Surplus/(Deficit) with rate increases $ (1,079,331) $ (804,336) $ (1,136,370) $ (362,115) $ 90,744 $ 602,226 $ 722,070 Rate Increase* 0.0% 0.0% 10.0% 10.0% 10.0% 10.0% 4.0%
Additional Revenue from Rate Increases $0 $0 $131,658 $1,105,931 $1,743,158 $2,444,107 $2,752,525

0.0% 0.0% 10.0% 21.0% 33.1% 46.4% 52.3%
*Note: Percent increase is calculated off the net revenue requirement. Customer rates do not directly reflect this percent increase due to cost-of-service adjustments.

Projected RATE REVENUE REQUIREMENTS SUMMARY
Net Revenue Req't.

Cumulative Rate Increases
TABLE 2 : RESERVE FUND SUMMARY
Projection Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Total Beginning Cash 1 $ 3,034,560
Solid Waste O&M Reserve Fund
Beginning Reserve Balance $ 3,034,560 $ 1,955,229 $ 1,150,893 $ 14,523 $ (347,592) $ (256,849) Plus: Net Cash Flow (After Rate Increases) (1,079,331) (804,336) (1,136,370) (362,115) 90,744 602,226 Ending O&M Reserve Balance $ 1,955,229 $ 1,150,893 $ 14,523 $ (347,592) $ (256,849) $ 345,377 $ 1,955,229 $ 1,150,893 $ (117,135) $ (1,585,182) $ (3,237,595) $ (5,079,477) Minimum Ending Balance (30% O&M) 2 $ 1,740,000 $ 1,730,000 $ 1,770,000 $ 1,820,000 $ 1,870,000 $ 1,910,000 Ending vs. Target - Annual Surplus/(Deficit) $ 215,229 $ (579,107) $ (1,755,477) $ (2,167,592) $ (2,126,849) $ (1,564,623) Annual Interest Earnings Rate 3 0.00% 1.86% 1.86% 1.86% 1.86% 1.86%

1. Beginning cash balance for the Soild Waste Fund is found in CAFR. Source File: FY-2018-2019-Comprehensive-Annual-Financial-Report.pdf, Page 42.

2. NBS recommends Solid Waste Fund will maintain a minimum of 90 days operating budget in reserves.

Source: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp.

Projected
Total Ending Balance w/o Rate Increases

SUMMARY OF RESERVE FUND ACTIVITY

I I I I I I I
I
I
I
-------
City of Madera – Solid Waste Rate Study B-2
$0 mil.
$1 mil.
$2 mil.
$3 mil.
$4 mil.
$5 mil.
$6 mil.
$7 mil.
$8 mil.
$9 mil.
2021 2022 2023 2024 2025 2026
Total Obligations
Fiscal Year Ending June 30
Solid Waste Revenue Requirements vs.

Revenue Under Existing and Recommended Rate Increases
O&M Expenses
Revenues under Existing Rates
Revenues under Proposed Rates
City of Madera – Solid Waste Rate Study B-3
TABLE 3 : SOLID WASTE UTILITY REVENUE F Proj. Year-End Budget SOURCES OF REVENUE 2020 2020 2021 2022 2023 2024 2025

UTILITY BILLING/GARBAGE
Refunds
Refunds & Reimbursements $ - $ 421 $ 421 $ 421 $ 421 $ 421 $ 421 Subtotal $ - $ 421 $ 421 $ 421 $ 421 $ 421 $ 421

SOLID WASTE DISPOSAL
Fines & Forfeiture
Late Payment/Other Penalty $ 70,722 $ 106,764 $ 106,764 $ 106,764 $ 106,764 $ 106,764 $ 106,764 Subtotal $ 70,722 $ 106,764 $ 106,764 $ 106,764 $ 106,764 $ 106,764 $ 106,764 Charges for Services
Disposal Collection Fees $ 5,035,107 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 $ 5,266,337 Admin Fees 65,281 16,545 16,545 16,545 16,545 16,545 16,545 Subtotal $ 5,100,388 $ 5,282,882 $ 5,282,882 $ 5,282,882 $ 5,282,882 $ 5,282,882 $ 5,282,882 Interest
Interest Income 2 $ 24,425 $ 17,446 $ - $ - $ - $ - $ - Subtotal $ 24,425 $ 17,446 $ - $ - $ - $ - $ -
Gains & Proceeds
Sale of Real & Personal Property $ 2,747 $ - $ - $ - $ - $ - $ - Subtotal $ 2,747 $ - $ - $ - $ - $ - $ -
Refunds
Refunds & Reimbursements $ 63 $ - $ - $ - $ - $ - $ -
Collection Recovery 1,257 1,613 1,613 1,613 1,613 1,613 1,613 Subtotal $ 1,320 $ 1,613 $ 1,613 $ 1,613 $ 1,613 $ 1,613 $ 1,613 Transfers In
Transfers In $ 67,311 $ 67,311 $ - $ - $ - $ - $ -
Subtotal $ 67,311 $ 67,311 $ - $ - $ - $ - $ -

SOLID WASTE RECYCLING
Transfers In
Transfers In $ - $ 67,311 $ - $ - $ - $ - $ -
Subtotal $ - $ 67,311 $ - $ - $ - $ - $ -

STREET CLEANING
Fines & Forfeiture
Late Payment/Other Penalty $ 8,475 $ 9,054 $ 9,054 $ 9,054 $ 9,054 $ 9,054 $ 9,054 Subtotal $ 8,475 $ 9,054 $ 9,054 $ 9,054 $ 9,054 $ 9,054 $ 9,054 Charges for Services
Street Sweeping Fees $ 444,880 $ 406,637 $ 406,637 $ 406,637 $ 406,637 $ 406,637 $ 406,637 Subtotal $ 444,880 $ 406,637 $ 406,637 $ 406,637 $ 406,637 $ 406,637 $ 406,637 Gains & Proceeds
Sale of Real & Personal Property $ - $ - $ - $ - $ - $ - $ - Subtotal $ - $ - $ - $ - $ - $ - $ -
Refunds
Collection Recovery $ 156 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 Subtotal $ 156 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329
Transfers In
Transfers In $ 50,000 $ 50,000 $ - $ - $ - $ - $ -
Subtotal $ 50,000 $ 50,000 $ - $ - $ - $ - $ -
Transfers In
Transfers In $ 109,120 $ 109,120 $ - $ - $ - $ - $ -
Subtotal $ 109,120 $ 109,120 $ - $ - $ - $ - $ -
Total SOURCES OF REVENUE $ 5,879,544 $ 6,118,888 $ 5,807,700 $ 5,807,700 $ 5,807,700 $ 5,807,700 $ 5,807,700 I I Prop 218 Rate Period I
' '
City of Madera – Solid Waste Rate Study B-4
TABLE 5 : SOLID WASTE UTILITY EXPENSE FORECAST 1
DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

UTILITY BILLING/GARBAGE
Salaries & Benefits
Salaries/Full-Time $ 115,354 $ 142,387 $ 144,523 $ 146,691 $ 148,891 $ 151,124 $ 153,391 Salaries/Part-Time 10,370 - - - - - -
Salaries/Overtime 199 - - - - - -
Salaries - Leave Payout 545 - - - - - -
Salaries - Auto & Expense Allo. 45 68 69 70 71 72 73
Public Employees Retirement 14,439 16,404 16,650 16,900 17,153 17,411 17,672 Long Term Disability Insurance 397 484 491 499 506 514 521 Life Insurance Premiums 155 181 184 186 189 192 195
Workers Compensation Insurance 12,732 12,488 12,675 12,865 13,058 13,254 13,453 Medicare Tax - Employer's Share 1,877 2,054 2,085 2,116 2,148 2,180 2,213 Unfunded Accrued Liability 22,536 25,629 26,013 26,404 26,800 27,202 27,610 Deferred Comp/Part-Time 395 - - - - - -
Deferred Comp/Full-Time 4,545 4,988 5,063 5,139 5,216 5,294 5,373 Unemployment Insurance 719 536 544 552 560 569 577
Section 125 Benefit Allowance 45,688 40,627 41,236 41,855 42,483 43,120 43,767 Subtotal $ 229,996 $ 245,846 $ 249,534 $ 253,277 $ 257,076 $ 260,932 $ 264,846 Materials & Services
Telephone & Fax Charges $ 4,000 $ 4,000 $ 4,120 $ 4,244 $ 4,371 $ 4,502 $ 4,637 Advertising/Bids & Notices 375 250 258 265 273 281 290
Advertising/Other - 606 624 643 662 682 703
Office Supplies/Expendable 3,000 2,500 2,575 2,652 2,732 2,814 2,898 Postage/Other Mailing Charge 22,500 20,000 20,600 21,218 21,855 22,510 23,185 Vehicle Fuel, Supplies & Maintenance 813 750 758 765 773 780 788 Contracted Services 29,000 15,000 15,450 15,914 16,391 16,883 17,389 Bank Service Charges 175,000 15,000 15,450 15,914 16,391 16,883 17,389 Conference/Training/Education 1,500 1,500 1,545 1,591 1,639 1,688 1,739 Subtotal $ 236,188 $ 59,606 $ 61,379 $ 63,205 $ 65,086 $ 67,023 $ 69,018 Interfund Charges
Central Su. $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2
Admin. Ove. 19,977 19,977 20,576 21,194 21,829 22,484 23,159 Vehicle Replacement - - - - - - -
Vehicle Maintenance - - - - - - -
Computer Maintenance 16,606 16,606 17,104 17,617 18,146 18,690 19,251 Computer R. 3,743 3,743 3,855 3,971 4,090 4,213 4,339
Software - - - - - - -
Motor Renta. 1,485 1,485 1,530 1,575 1,623 1,671 1,722
Subtotal $ 41,813 $ 41,813 $ 43,067 $ 44,359 $ 45,690 $ 47,061 $ 48,473 Special Payments
OPEB Obligation Expense $ 825 $ - $ - $ - $ - $ - $ -
Pension Expense-GASB 68 - 38,606 39,185 39,773 40,369 40,975 41,590 Subtotal $ 825 $ 38,606 $ 39,185 $ 39,773 $ 40,369 $ 40,975 $ 41,590 Capital Outlay
Vehicles & Equipment $ 375 $ 375 $ 386 $ 398 $ 410 $ 422 $ 435 Subtotal $ 375 $ 375 $ 386 $ 398 $ 410 $ 422 $ 435
Transfer Out
Transfer Out - Insurance Reserve $ 4,695 $ 4,695 $ 4,695 $ 4,695 $ 4,695 $ 4,695 $ 4,695 Subtotal $ 4,695 $ 4,695 $ 4,695 $ 4,695 $ 4,695 $ 4,695 $ 4,695 Sub-Total: Utility Billing/Garbage $ 513,892 $ 390,941 $ 398,247 $ 405,707 $ 413,327 $ 421,108 $ 429,057 City of Madera – Solid Waste Rate Study B-5
TABLE 6 : SOLID WASTE UTILITY EXPENSE FORECAST, continued 1 DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

SOLID WASTE DISPOSAL
Salaries & Benefits
Salaries/Full-Time $ 30,376 $ 48,117 $ 48,839 $ 49,571 $ 50,315 $ 51,070 $ 51,836 Salaries/Part-Time 5,963 - - - - - -
Salaries/Overtime 3 - - - - - -
Salaries - Leave Payout - - - - - - -
Salaries/Uniform Pay - - - - - - -
Salaries - Auto & Expense Allo. - - - - - - -
Public Employees Retirement 3,887 5,948 6,037 6,128 6,220 6,313 6,408 Long Term Disability Insurance 99 143 145 147 150 152 154 Life Insurance Premiums 39 52 53 54 54 55 56
Workers Compensation Insurance 3,676 4,576 4,645 4,714 4,785 4,857 4,930 Medicare Tax - Employer's Share 539 710 721 731 742 754 765 Unfunded Accrued Liability 6,093 6,926 7,030 7,135 7,242 7,351 7,461 Deferred Comp/Part-Time 224 - - - - - -
Deferred Comp/Full-Time 911 1,052 1,068 1,084 1,100 1,117 1,133 Unemployment Insurance 191 136 138 140 142 144 147
Section 125 Benefit Allowance 7,315 8,793 8,925 9,059 9,195 9,333 9,473 Subtotal $ 59,316 $ 76,453 $ 77,600 $ 78,764 $ 79,945 $ 81,144 $ 82,362 Materials & Services
Gas & Electric Utilities $ 11,500 $ 12,000 $ 12,060 $ 12,120 $ 12,181 $ 12,242 $ 12,303 Telephone & Fax Charges 1,818 1,500 1,545 1,591 1,639 1,688 1,739 Advertising/Other 12,000 12,500 12,875 13,261 13,659 14,069 14,491 Office Supplies/Expendable 350 450 464 477 492 506 522
Postage/Other Mailing Charge 200 50 52 53 55 56 58
Vehicle Fuel, Supplies & Maintenance - 5,000 5,050 5,101 5,152 5,203 5,255 Contracted Services 4,545,950 4,500,000 4,635,000 4,774,050 4,917,272 5,064,790 5,216,733 Bank Service Charges 3 5 5 5 5 6 6
Maintenance/Other Supplies - 150 155 159 164 169 174
Subtotal $ 4,571,821 $ 4,531,655 $ 4,667,205 $ 4,806,818 $ 4,950,618 $ 5,098,729 $ 5,251,281 Interfund Charges
Facility Maintenance $ 24,144 $ 23,620 $ 24,329 $ 25,058 $ 25,810 $ 26,585 $ 27,382 Central Su. 15 15 15 16 16 17 17
Cost Distribution 9,517 9,517 9,803 10,097 10,399 10,711 11,033 Admin. Ove. 243,939 243,939 251,257 258,795 266,559 274,555 282,792 Vehicle Replacement 10,717 10,717 11,039 11,370 11,711 12,062 12,424 Vehicle Maintenance 12,200 12,200 12,566 12,943 13,331 13,731 14,143 Route/Roll-Off 108,150 108,150 111,395 114,736 118,178 121,724 125,375 Computer Maintenance 16,150 16,150 16,635 17,134 17,648 18,177 18,722 Computer R. 3,623 3,623 3,732 3,844 3,959 4,078 4,200
Software 262 262 270 278 286 295 304
Subtotal $ 428,717 $ 428,193 $ 441,039 $ 454,270 $ 467,898 $ 481,935 $ 496,393 Special Payments
Liability/Property Insurance $ 16,694 $ 18,596 $ 18,875 $ 19,158 $ 19,445 $ 19,737 $ 20,033 Pension Expense-GASB 68 - 18,056 18,327 18,602 18,881 19,164 19,451 Subtotal $ 16,694 $ 36,652 $ 37,202 $ 37,760 $ 38,326 $ 38,901 $ 39,485 Capital Outlay
Vehicles & Equipment $ - $ 135,000 $ 139,050 $ 143,222 $ 147,518 $ 151,944 $ 156,502 Subtotal $ - $ 135,000 $ 139,050 $ 143,222 $ 147,518 $ 151,944 $ 156,502 Transfer Out
Transfer Out $ 770,288 $ 770,288 $ 770,288 $ 770,288 $ 770,288 $ 770,288 $ 770,288 Transfer Out-Insurance Reserve 4,373 4,373 4,373 4,373 4,373 4,373 4,373 Subtotal $ 774,661 $ 774,661 $ 774,661 $ 774,661 $ 774,661 $ 774,661 $ 774,661 Sub-Total: Solid Waste Disposal $ 5,851,209 $ 5,982,614 $ 6,136,756 $ 6,295,494 $ 6,458,966 $ 6,627,314 $ 6,800,683 Depreciation (Non-cash item left out of analysis) 4
Depreciation/Replacement $ 5,458 $ 5,458 $ 5,622 $ 5,790 $ 5,964 $ 6,143 $ 6,327 Subtotal $ 5,458 $ 5,458 $ 5,622 $ 5,790 $ 5,964 $ 6,143 $ 6,327 I
I
City of Madera – Solid Waste Rate Study B-6
TABLE 7 : SOLID WASTE UTILITY EXPENSE FORECAST, continued 1 DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

SOLID WASTE RECYCLING
Salaries & Benefits
Public Employees Retirement $ - $ - $ - $ - $ - $ - $ - Subtotal $ - $ - $ - $ - $ - $ - $ -
Materials & Services
Telephone & Fax Charges $ - $ (58) $ - $ - $ - $ - $ -
Advertising/Other - - - - - - -
Office Supplies/Expendable - - - - - - -
Postage/Other Mailing Charge - - - - - - -
Contracted Services 51 (38) - - - - -
Conference/Training/Education - - - - - - -
Maintenance/Other Supplies - - - - - - -
Subtotal $ 51 $ (96) $ - $ - $ - $ - $ -
Interfund Charges
Cost Distribution $ - $ - $ - $ - $ - $ - $ -
Admin. Ove. - - - - - - -
Subtotal $ - $ - $ - $ - $ - $ - $ -
Special Payments
Liability/Property Insurance $ - $ - $ - $ - $ - $ - $ - Subtotal $ - $ - $ - $ - $ - $ - $ -
Sub-Total: Solid Waste Recycling $ 51 $ (96) $ - $ - $ - $ - $ - City of Madera – Solid Waste Rate Study B-7
TABLE 8 : SOLID WASTE UTILITY EXPENSE FORECAST, continued 1 DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

STREET CLEANING
Salaries & Benefits
Salaries/Full-Time $ 174,702 $ 20,502 $ 20,810 $ 21,122 $ 21,438 $ 21,760 $ 22,086 Salaries/Part-Time 10,883 - - - - - -
Salaries/Overtime 14,952 11,250 11,419 11,590 11,764 11,940 12,119 Salaries - Leave Payout 6,571 - - - - - -
Salaries/Uniform Pay 800 588 597 606 615 624 633
Salaries - Auto & Expense Allo. - - - - - - -
Public Employees Retirement 19,262 25,181 25,559 25,942 26,331 26,726 27,127 Long Term Disability Insurance 459 566 574 583 592 601 610 Life Insurance Premiums 206 251 255 259 262 266 270
Workers Compensation Insurance 16,017 17,627 17,891 18,160 18,432 18,709 18,989 Medicare Tax - Employer's Share 2,428 2,820 2,862 2,905 2,949 2,993 3,038 Unfunded Accrued Liability 33,060 37,611 38,175 38,748 39,329 39,919 40,518 Deferred Comp/Part-Time 409 - - - - - -
Deferred Comp/Full-Time 5,227 6,441 6,538 6,636 6,735 6,836 6,939 Unemployment Insurance 632 695 705 716 727 738 749
Section 125 Benefit Allowance 33,783 40,430 41,036 41,652 42,277 42,911 43,555 Subtotal $ 319,391 $ 163,962 $ 166,421 $ 168,918 $ 171,452 $ 174,023 $ 176,634 Materials & Services
Telephone & Fax Charges $ 39 $ 40 $ 41 $ 42 $ 44 $ 45 $ 46 Vehicle Fuel, Supplies & Maintenance 29,297 30,000 30,300 30,603 30,909 31,218 31,530 Contracted Services - 49,180 50,655 52,175 53,740 55,353 57,013 Maintenance/Other Supplies 15,000 15,000 15,450 15,914 16,391 16,883 17,389 Subtotal $ 44,336 $ 94,220 $ 96,447 $ 98,734 $ 101,084 $ 103,498 $ 105,979 Interfund Charges
Central Su. $ 380 $ 380 $ 391 $ 403 $ 415 $ 428 $ 441
Admin. Ove. 20,623 20,623 21,242 21,879 22,535 23,211 23,908 Vehicle Replacement 91,404 91,404 94,146 96,971 99,880 102,876 105,962 Vehicle Maintenance 74,705 74,705 76,946 79,255 81,632 84,081 86,604 Subtotal $ 187,112 $ 187,112 $ 192,725 $ 198,507 $ 204,462 $ 210,596 $ 216,914 Special Payments
Liability/Property Insurance $ 4,637 $ 5,166 $ 5,243 $ 5,322 $ 5,402 $ 5,483 $ 5,565 Pension Expense-GASB 68 - 49,360 50,100 50,852 51,615 52,389 53,175 Subtotal $ 4,637 $ 54,526 $ 55,344 $ 56,174 $ 57,017 $ 57,872 $ 58,740 Transfer Out
Transfer Out-Insurance Reserve $ 5,084 $ 5,084 $ 5,084 $ 5,084 $ 5,084 $ 5,084 $ 5,084 Subtotal $ 5,084 $ 5,084 $ 5,084 $ 5,084 $ 5,084 $ 5,084 $ 5,084 Sub-Total: Street Cleaning $ 560,560 $ 504,904 $ 516,021 $ 527,417 $ 539,098 $ 551,074 $ 563,351 City of Madera – Solid Waste Rate Study B-8
TABLE 9 : SOLID WASTE UTILITY EXPENSE FORECAST, continued 1 DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

BEVERAGE CONTAINER RECYCLING
Materials & Services
Advertising/Other $ 16,583 $ 16,039 $ 16,520 $ 17,016 $ 17,526 $ 18,052 $ 18,594 Conference/Training/Education - 600 618 637 656 675 696 Subtotal $ 16,583 $ 16,639 $ 17,138 $ 17,652 $ 18,182 $ 18,727 $ 19,289 Sub-Total: Beverage Container Recycling $ 16,583 $ 16,639 $ 17,138 $ 17,652 $ 18,182 $ 18,727 $ 19,289 TABLE 10 : SOLID WASTE UTILITY EXPENSE FORECAST, continued 1 DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

USED OIL RECYCLING
Materials & Services
Advertising/Other $ - $ 9,900 $ 10,197 $ 10,503 $ 10,818 $ 11,143 $ 11,477 Subtotal $ - $ 9,900 $ 10,197 $ 10,503 $ 10,818 $ 11,143 $ 11,477 Sub-Total: Used Oil Recycling $ - $ 9,900 $ 10,197 $ 10,503 $ 10,818 $ 11,143 $ 11,477 TABLE 11 : SOLID WASTE UTILITY EXPENSE FORECAST, continued 1 DESCRIPTION 2020 2021 2022 2023 2024 2025 2026

TIRE CLEAN UP
Salaries & Benefits
Salaries/Full-Time $ 345 $ - $ - $ - $ - $ - $ -
Salaries/Overtime - - - - - - -
Salaries - Leave Payout - - - - - - -
Salaries/Uniform Pay - - - - - - -
Public Employees Retirement 33 - - - - - -
Long Term Disability Insurance - - - - - - -
Life Insurance Premiums - - - - - - -
Workers Compensation Insurance 35 - - - - - -
Medicare Tax - Employer's Share 5 - - - - - -
Unfunded Accrued Liability - 59 60 61 62 63 64
Deferred Comp/Full-Time 14 - - - - - -
Unemployment Insurance 10 - - - - - -
Section 125 Benefit Allowance - - - - - - -
Subtotal $ 442 $ 59 $ 60 $ 61 $ 62 $ 63 $ 64
Materials & Services
Contracted Services $ 15,000 $ 13,080 $ 13,472 $ 13,877 $ 14,293 $ 14,722 $ 15,163 Maintenance/Other Supplies - - - - - - -
Subtotal $ 15,000 $ 13,080 $ 13,472 $ 13,877 $ 14,293 $ 14,722 $ 15,163 Special Payments
Pension Expense-GASB 68 $ - $ 4,045 $ 4,106 $ 4,167 $ 4,230 $ 4,293 $ 4,358 Subtotal $ - $ 4,045 $ 4,106 $ 4,167 $ 4,230 $ 4,293 $ 4,358 Transfer Out
Transfer Out-Insurance Reserve $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 Subtotal $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 Sub-Total: Tire Clean Up $ 16,580 $ 18,322 $ 18,776 $ 19,243 $ 19,722 $ 20,215 $ 20,722 Total Expenses $ 6,958,875 $ 6,923,224 $ 7,097,135 $ 7,276,016 $ 7,460,114 $ 7,649,581 $ 7,844,578 TABLE 12 : FORECASTING ASSUMPTIONS
INFLATION FACTORS 3 2020 2021 2022 2023 2024 2025 2026
Customer Growth - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Salaries - 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Benefits - 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
General Inflation - 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Fuel - 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Electricity - 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
No Escalation - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenue and expenses for FY 2019/20 through FY 2020/21 are from source file: Enterprise Funds Budget 2020-21.pdf, pages 43-53.

2. Interest income is calculated in the Financial Plan and excluded from this table.

3. Inflation values follow 5-year average (2016-2020) from US Bureau of Labor Statistics (BLS).

Website: https://data.bls.gov/cgi-bin/surveymost?en+06

4. Depreciation expense is not considered in this projection since it is not a cash expense.

I
I
I

I I I I I I I I I
City of Madera – Solid Waste Rate Study B-9
TABLE 13 : SOURCES AND USES OF CAPITAL FUNDS
CAPITAL FUNDING FORECAST Budget Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Grants 1 $ 86,142 $ - $ - $ - $ - $ - $ -
State Revolving Fund Loan - - - - - - -
Revenue Bond - - - - - - -
Use of Rate Revenue - - - - - - -
Grand Total: Capital Funding Sources $ 86,142 $ - $ - $ - $ - $ - $ - Uses of Capital Funds:

Effective Annual Funding of Capital Expenditures $ - $ - $ - $ - $ - $ - $ - Capital Funding Surplus (Deficiency) $ (86,142) $ - $ - $ - $ - $ - $ -

1. Grant Funding is per source file: Enterprise Funds Budget 2020-21.pdf, pages 51-53.

Funding Sources:

Projected
City of Madera – Solid Waste Rate Study B-10
Customer Data - Tonnage, Account Count and Amount Billed Count of December 2020 Number of Accounts
Sum of Account Count 2020
December
Solid Waste Disposal
SINGLE FAMILY REFUSE 3 CANS 12,371 $15.35 $189,895 $23.22 $287,255 290,784 $ SINGLE FAMILY W/O GREEN 52 $972 972 $
RESIDENTIAL CARRYOUT 1 $53 53 $

DITIONAL REFUSE PICK UP - RESIDENTIAL -
MULTI FAMILY FIRST TWO UNITS 334 $15.35 $5,127 $23.22 $7,755 17,612 $ MULTI FAMILY MORE THAN 2 UNITS 3 $2,846 2,846 $
ADDITIONAL BLUE CAN 10 $76 76 $
ADDITIONAL GRAY CAN 10 $927 927 $
ADDITIONAL GREEN CAN 9 $154 154 $
COMMERCIAL CARRYOUT 3 $29.57 $89 $40.85 $123 173 $

COMMERCIAL CARRYOUT ADDITIONAL -
COMMERCIAL GRAY ONLY 2
COMMERCIAL REFUSE 135 $17.72 $2,392 $29.46 $3,977 4,728 $ COMMERCIAL REFUSE 1/2 2 $44 44 $
COMMERCIAL REFUSE ADDL 3 $245 245 $
ORGANIC WASTE 2 CUBIC YARD 3X WK 1 $126.93 $127 $118.54 $119 356 $ RGANIC WASTE 2 CUBIC YARD BIN 1X WK 1 $45.26 $45 $42.18 $42 337 $ ORGANIC WASTE 2 CUBIC YD 2X WK 1 $82.78 $83 $77.36 $77 387 $ ORGANIC WASTE 3 CUBIC YD 5X WK - $ -
ORGANIC WASTE 96 GAL 1X WK 1 $11.03 $11 $10.28 $10 21 $ ORGANIC WASTE 96 GAL 2X WK - $51 51 $
RECYCLE 2YD 1X WK 1 $34.75 $35 $31.22 $31 4,574 $
RECYCLE 2YD 2X WK - $1,344 1,344 $
RECYCLE 2YD 3X WK - $323 323 $
RECYCLE 3YD 1X WK - $3,267 3,267 $
RECYCLE 3YD 2X WK - $2,327 2,327 $
RECYCLE 3YD 3X WK 1 $139.77 $140 $109.38 $109 984 $
RECYCLE 4YD 1X WK 1 $53.35 $53 $47.92 $48 2,013 $
RECYCLE 4YD 2X WK - $1,430 1,430 $
RECYCLE 4YD 3X WK - $262 262 $
RECYCLE 6YD 1X WK - $323 323 $
RECYCLE 6YD 2X WK - $945 945 $
RECYCLE 6YD 3X WK 1 $204.69 $205 $171.54 $172 1,715 $
REFUSE SVC 2YD 1X WK 180 $55.08 $9,914 $52.11 $9,380 13,002 $ REFUSE SVC 2YD 2X WK 18 $103.05 $1,855 $102.40 $1,843 2,765 $ REFUSE SVC 2YD 3X WK 4 $152.20 $609 $151.25 $605 756 $
REFUSE SVC 2YD 4X WK - $203 203 $
REFUSE SVC 2YD 5X WK - $253 253 $
REFUSE SVC 3YD 1X WK 97 $67.53 $6,550 $65.84 $6,386 8,820 $ REFUSE SVC 3YD 2X WK 56 $127.94 $7,165 $130.34 $7,299 15,945 $ REFUSE SVC 3YD 3X WK 18 $188.35 $3,390 $194.44 $3,500 8,420 $ REFUSE SVC 3YD 4X WK 3 $248.75 $746 $258.72 $776 1,035 $ REFUSE SVC 3YD 5X WK 1 $337.58 $338 $323.14 $323 969 $
REFUSE SVC 4YD 1X WK 35 $77.29 $2,705 $79.73 $2,791 4,545 $ REFUSE SVC 4YD 2X WK 27 $149.25 $4,030 $157.87 $4,262 11,682 $ REFUSE SVC 4YD 3X WK 10 $304.72 $3,047 $272.25 $2,723 8,440 $ REFUSE SVC 4YD 4X WK 4 $433.54 $1,734 $333.10 $1,332 1,332 $ REFUSE SVC 4YD 5X WK 2 $480.92 $962 $392.17 $784 3,137 $ $94 94 $
REFUSE SVC 5YD 3X WK 2 $295.84 $592 $276.11 $552 552 $
REFUSE SVC 6YD 1X WK 26 $113.72 $2,957 $107.22 $2,788 4,342 $ REFUSE SVC 6YD 2X WK 17 $216.76 $3,685 $213.04 $3,622 8,841 $ REFUSE SVC 6YD 3X WK 5 $319.82 $1,599 $318.78 $1,594 3,188 $ $424 424 $
REFUSE SVC 6YD 5X WK 1 $525.03 $525 $529.93 $530 2,650 $ REFUSE SVC 3YD 3X WK COMP - $389 389 $
REFUSE SVC 4YD 1XWK COMPACTOR - $255 255 $
TRASH CANS ALL 3 - $945 945 $
TRASH CANS EACH - $1,715 1,715 $
Grand Total 13,449
REFUSE LOCKING SERVICE 124 $1,860 1,860 $
Source file: 2020 DEC MUNIS Billing_Manipulated.xlsx, Solid Waste tab.

Total Monthly Revenue $250,604 $367,374 443,175 $
Total Annual Revenue $3,007,249 $4,408,487 5,318,102 $
2020 Billing
Amount
MVD Rate Sheet
Monthly
Rate Revenue
Current City Rates
Rate
Monthly
Revenue
City of Madera – Solid Waste Rate Study B-11
2020 Billing Amount
Sum of bd_original_amount MONTH
1 Solid Waste Disposal
SINGLE FAMILY REFUSE 3 CANS $ 290,784
SINGLE FAMILY W/O GREEN $ 972
RESIDENTIAL CARRYOUT $ 53

DITIONAL REFUSE PICK UP - RESIDENTIAL
ADDITIONAL BLUE CAN $ 76
ADDITIONAL GRAY CAN $ 927
ADDITIONAL GREEN CAN $ 154
MULTI FAMILY FIRST TWO UNITS $ 17,612
MULTI FAMILY MORE THAN 2 UNITS $ 2,846
COMMERCIAL CARRYOUT $ 173

COMMERCIAL CARRYOUT ADDITIONAL

COMMERCIAL GRAY ONLY
COMMERCIAL REFUSE $ 4,728
COMMERCIAL REFUSE 1/2 $ 44
COMMERCIAL REFUSE ADDL $ 245
REFUSE SVC 2YD 1X WK $ 13,002
REFUSE SVC 2YD 2X WK $ 2,765
REFUSE SVC 2YD 3X WK $ 756
REFUSE SVC 2YD 4X WK $ 203
REFUSE SVC 2YD 5X WK $ 253
REFUSE SVC 3YD 1X WK $ 8,820
REFUSE SVC 3YD 2X WK $ 15,945
REFUSE SVC 3YD 3X WK $ 8,420
REFUSE SVC 3YD 4X WK $ 1,035
REFUSE SVC 3YD 5X WK $ 969
REFUSE SVC 4YD 1X WK $ 4,545
REFUSE SVC 4YD 2X WK $ 11,682
REFUSE SVC 4YD 3X WK $ 8,440
REFUSE SVC 4YD 4X WK $ 1,332
REFUSE SVC 4YD 5X WK $ 3,137
REFUSE SVC 5YD 1X WK $ 94
REFUSE SVC 5YD 3X WK $ 552
REFUSE SVC 6YD 1X WK $ 4,342
REFUSE SVC 6YD 2X WK $ 8,841
REFUSE SVC 6YD 3X WK $ 3,188
REFUSE SVC 6YD 4X WK $ 424
REFUSE SVC 6YD 5X WK $ 2,650
REFUSE SVC 3YD 3X WK COMP $ 389
REFUSE SVC 4YD 1XWK COMPACTOR $ 255
ORGANIC WASTE 2 CUBIC YARD 3X WK $ 356
RGANIC WASTE 2 CUBIC YARD BIN 1X WK $ 337
ORGANIC WASTE 2 CUBIC YD 2X WK $ 387
ORGANIC WASTE 3 CUBIC YD 5X WK
ORGANIC WASTE 96 GAL 1X WK $ 21
ORGANIC WASTE 96 GAL 2X WK $ 51
RECYCLE 2YD 1X WK $ 4,574
RECYCLE 2YD 2X WK $ 1,344
RECYCLE 2YD 3X WK $ 323
RECYCLE 3YD 1X WK $ 3,267
RECYCLE 3YD 2X WK $ 2,327
RECYCLE 3YD 3X WK $ 984
RECYCLE 4YD 1X WK $ 2,013
RECYCLE 4YD 2X WK $ 1,430
RECYCLE 4YD 3X WK $ 262
RECYCLE 6YD 1X WK $ 323
RECYCLE 6YD 2X WK $ 945
RECYCLE 6YD 3X WK $ 1,715
REFUSE LOCKING SERVICE $ 1,860
TRASH CANS ALL 3
TRASH CANS EACH $ -
Grand Total $ 443,175
Source file: MAIS Meter Usage 12 Months_Manipulated_02.06.21.xlsx, RevenuePivots1-10 tab.

Source file: 2020 SEP-NOV MUNIS Billing2_Manipulated.xlsx, Solid Waste tab.

Source file: 2020 DEC MUNIS Billing_Manipulated.xlsx, Solid Waste tab.

City of Madera – Solid Waste Rate Study B-12
TABLE 27 : Summary of FY'21/22 Solid Waste Costs
$5,792,971 From Fin. Plan (Figure 1) - Includes proposed rate increase 1 ($400,583) Separately allocated to Single- and Multi-Family Resid. 2 $406,637 Offsets current Street Sweeping fees being collected 3 $5,799,025
$2,029,659 35% of Net Rev. Reqts.
$7,828,683 Excludes Admin Fees separately applied to Residential

1. Assume adoption April 1, 2022 means only 25% of the rate increse is collected in FY'21/22.

2. Calculated as $2.33/account times residential containers to which this fee applies. This is applied separately to these customers.

3. Street Sweeping fees from the Financial Plan. There are other street sweeping costs already included in Net Revenue Requirements.

TABLE 28 : Proposed Rate Revenue - FY 2021/22
Customer Class Rate Revenue 1 % of Total 2 35% Surcharge Total Revenue % of Total Single Family Residential $3,692,620 63.7% $1,292,417 $4,985,038 63.7% Multi-Family Residential $134,736 2.3% $47,157 $181,893 2.3% Total Residential $3,827,356 66.0% $1,339,575 $5,166,931 66.0% Commercial 96-Gal. Service $68,453 1.2% $23,959 $92,412 1.2% Commercial Bin Service $1,519,344 26.2% $531,770 $2,051,114 26.2% Commercial Recycling $352,275 6.1% $123,296 $475,572 6.1% Commercial Compactor $2,262 0.0% $792 $3,053 0.0%
Commercial Organics $29,334 0.5% $10,267 $39,601 0.5%
Total Commercial $1,971,668 34.0% $690,084 $2,661,752 34.0% Total Revenue - FY 2021/22 $5,799,024 100.0% $2,029,658 $7,828,682 100.0%

1. Total Revenue based on Proposed Rates and number of accounts as of January 2021, including rate increases and Street Sweeping costs.

2. Overall allocation of residential vs. commercial revenue requirements is about 66%/34% per Mid Valley Disposal.

3. Admin Service Fees of $2.33/residential account will be separately added to residential customers rates.

Proposed Rate Revenue - FY 2021/22 INCLUDING STREET SWEEPING & 35% SURCHARGE SB 1383 Surcharge (35%)
Net Rev. Reqts. (from Financial Plan)
Street Sweeping Costs
Net Rev. Reqts. - Including Street Sweeping
Summary of FY'21/22 Solid Waste Costs
Net Rev. Reqts. - Incl. Street Sweeping & Surcharge
less Admin Fees (already included in the above)
Notes:

Allocated 66% to Residential, 34% Commercial
TABLE 29 :

Allocation Factors Used in Calculating Commercial Rates B. % Incr. in COLLECTION Costs (vs. 2 CY):

Collection 80.0% Bin Size Comm. FL BinsMo. Container
Disposal 20.0% 96 gal. 47.5% NA

2.0 CY 100.0% $6.00
Base Collection Charge (2 CY @ 1X/Week) $ 75.83 3.0 CY 100.0% $9.00 Base Disposal Charge (2 CY @ 1X/Week) $15.17 4.0 CY 100.0% $12.00 Base Charge (2 CY @ 1X/Week) $ 91.00 5.0 CY 100.0% $15.00 Base Recycl. Disp Charge (2 CY @ 1X/Wk) $ - 6.0 CY 100.0% $18.00 Base Organics. Disp Charge (2 CY @ 1X/Wk) $ - Efficiency Adjmnt: 0% 100% 300.0%
Residential/MFR/Commercial 96-gal. Service Rate Revenue 48.524% Commercial Bin Rate Revenue 130.283%
Commercial Non-Bin Rate Revenue 53.568%
AB 1383 Surcharge Target = 35% 100.000%
Revenue Generated by Surcharge: $2,029,659
D. MVD Compactor Density Factor:

A. Allocation of Collection/Disposal Costs:

Mid-Valley
Estimates
C. Base Commercial Bin Service Rates ($/Mo.)
E. True-Up Factor (Equalizes Proposed Rates w/o Increases to Current Rates):

City of Madera – Solid Waste Rate Study B-13
TABLE 30 : Analysis of Current and Proposed Residential and Commercial Rates Rev. Est. WITH Surcharge
FY 2020/21 FY 2020/21 New Rate
Unadjusted Adjusted w/ Surcharge
Single Family Residential
Three Standard Containers $14.90 $ 23.22 $ 320,946.84 $ 15.59 NA $ 14.41 $ 30.00 $ 21.98 $ 7.69 $ 29.67 13,822 $303,769 $3,645,224 $410,088 $4,921,053 1/2 Resid. (Grey & Blue only) $15.35 $ 16.02 $ 945.18 $ 20.79 NA $ 7.21 $ 28.00 $ 17.30 $ 6.05 $ 23.35 59 $1,021 $12,246 $1,378 $16,532 Additional Grey Container $4.69 $ 4.73 $ 1,121.01 $ 5.20 NA $ 7.21 $ 12.40 $ 9.73 $ 3.40 $ 13.13 237 $2,306 $27,667 $3,113 $37,350 Additional Green Container $2.32 $ 2.17 $ 154.07 $ 5.20 NA $ 3.60 $ 8.80 $ 6.12 $ 2.14 $ 8.27 71 $435 $5,218 $587 $7,044 Additional Blue Container $2.19 $ 2.17 $ 56.42 $ 5.20 NA $ 3.60 $ 8.80 $ 6.12 $ 2.14 $ 8.27 26 $159 $1,911 $215 $2,580 Residential Carry-Out Service
Two Containers $26.01 $ 55.32 $ 55.32 $ 31.17 NA $ 14.41 $ 45.59 $ 29.54 $ 10.34 $ 39.88 1 $30 $354 $40 $479 Each Additional Container $5.88 $ 11.44 $ - $ 10.39 NA $ 7.21 $ 17.60 $ 12.25 $ 4.29 $ 16.54 - $0 $0 $0 $0 Total Resid. Service $208,187 $323,279 $307,718 $3,692,620 $415,420 $4,985,038 Multi-Family Residential
First Two Dwelling Units (each) $14.90 $ 23.22 $ 10,356.12 $ 15.59 NA $ 14.41 $ 30.00 $ 21.98 $ 7.69 $ 29.67 446 $9,802 $117,622 $13,232 $158,790 Each Additional Dwelling Unit $14.90 $ 22.59 $ 1,603.89 $ 11.69 NA $ 14.41 $ 26.10 $ 20.09 $ 7.03 $ 27.12 71 $1,426 $17,114 $1,925 $23,103 Total Multi-Family Service $22,672 $11,960 $11,228 $134,736 $15,158 $181,893 Commercial
Two Containers 17.53 $ 29.46 $ 5,214.42 $ 31.17 NA $ 14.41 $ 45.59 $ 29.54 $ 10.34 $ 39.88 177 $5,229 $62,743 $7,059 $84,703 Additional Two Containers 34.23 $ 40.85 $ 81.70 $ 23.38 NA $ 14.41 $ 37.79 $ 25.76 $ 9.02 $ 34.77 2 $52 $618 $70 $835 Commercial Carry-Out Service $0
Two Containers 29.57 $ 57.64 $ 172.92 $ 62.34 NA $ 14.41 $ 76.76 $ 44.67 $ 15.63 $ 60.30 3 $134 $1,608 $181 $2,171 Each Additional Container 17.20 $ 17.70 $ 106.20 $ 31.17 NA $ 7.21 $ 38.38 $ 22.33 $ 7.82 $ 30.15 6 $134 $1,608 $181 $2,171 Two Containers (Grey Only) 16.54 $ 29.46 $ 88.38 $ 62.34 NA $ 14.41 $ 76.76 $ 44.67 $ 15.63 $ 60.30 3 $134 $1,608 $181 $2,171 COMM C/O 96 5.57 $ 5.41 $ 5.41 $ 31.17 NA $ 7.21 $ 38.38 $ 22.33 $ 7.82 $ 30.15 1 $22 $268 $30 $362 Total Comm. 96-Gal. Service $5,282 $5,669 $5,704 $68,453 $7,701 $92,412 Bin Service (Solid Waste)
2 Cubic Yard Excluded
1x per week $55.08 $ 52.11 $ 14,017.59 $ 75.83 $ - $ 15.17 $ 91.00 $ 108.68 $ 38.04 $ 146.72 269 $29,234 $350,813 $39,466 $473,597 2x per week $103.05 $ 102.40 $ 3,072.00 $ 98.58 $ - $ 30.33 $ 128.92 $ 148.20 $ 51.87 $ 200.07 30 $4,446 $53,351 $6,002 $72,024 3x per week $152.20 $ 151.25 $ 1,210.00 $ 128.16 $ - $ 45.50 $ 173.66 $ 196.61 $ 68.81 $ 265.42 8 $1,573 $18,874 $2,123 $25,480 4x per week $202.55 $ 203.10 $ 203.10 $ 166.61 $ - $ 60.67 $ 227.27 $ 256.58 $ 89.80 $ 346.38 1 $257 $3,079 $346 $4,157 5x per week $285.35 $ 253.47 $ 253.47 $ 216.59 $ - $ 75.83 $ 292.42 $ 331.58 $ 116.05 $ 447.63 1 $332 $3,979 $448 $5,372 6x per week $ 309.40 $ - $ 281.56 $ - $ 91.00 $ 372.56 $ 426.11 $ 149.14 $ 575.25 - $0 $0 $0 $0 3 Cubic Yard
1x per week $67.53 $ 65.84 $ 10,995.28 $ 75.83 $ - $ 22.75 $ 98.58 $ 113.62 $ 39.77 $ 153.38 167 $18,974 $227,690 $25,615 $307,382 2x per week $127.94 $ 130.34 $ 11,339.58 $ 98.58 $ - $ 45.50 $ 144.08 $ 158.08 $ 55.33 $ 213.40 87 $13,753 $165,033 $18,566 $222,794 3x per week $188.35 $ 194.44 $ 11,860.84 $ 128.16 $ - $ 68.25 $ 196.41 $ 211.43 $ 74.00 $ 285.43 61 $12,897 $154,765 $17,411 $208,933 4x per week $248.75 $ 258.72 $ 1,034.88 $ 166.61 $ - $ 91.00 $ 257.61 $ 276.34 $ 96.72 $ 373.06 4 $1,105 $13,264 $1,492 $17,907 5x per week $337.58 $ 323.14 $ 646.28 $ 216.59 $ - $ 113.75 $ 330.34 $ 356.28 $ 124.70 $ 480.97 2 $713 $8,551 $962 $11,543 6x per week $ 387.39 $ - $ 281.56 $ - $ 136.50 $ 418.06 $ 455.75 $ 159.51 $ 615.26 - $0 $0 $0 $0 4 Cubic Yard
1x per week $77.29 $ 79.73 $ 5,740.56 $ 75.83 $ - $ 30.33 $ 106.17 $ 118.56 $ 41.50 $ 160.05 72 $8,536 $102,434 $11,524 $138,286 2x per week $149.25 $ 157.87 $ 7,577.76 $ 98.58 $ - $ 60.67 $ 159.25 $ 167.96 $ 58.78 $ 226.74 48 $8,062 $96,743 $10,884 $130,603 3x per week $304.00 $ 272.25 $ 6,806.25 $ 128.16 $ - $ 91.00 $ 219.16 $ 226.25 $ 79.19 $ 305.43 25 $5,656 $67,874 $7,636 $91,630 4x per week $433.54 $ 333.10 $ 1,665.50 $ 166.61 $ - $ 121.33 $ 287.94 $ 296.10 $ 103.63 $ 399.73 5 $1,480 $17,766 $1,999 $23,984 5x per week $480.92 $ 392.17 $ 3,529.53 $ 216.59 $ - $ 151.67 $ 368.25 $ 380.98 $ 133.34 $ 514.32 9 $3,429 $41,145 $4,629 $55,546 6x per week $ 470.24 $ - $ 281.56 $ - $ 182.00 $ 463.56 $ 485.39 $ 169.89 $ 655.27 - $0 $0 $0 $0 Current Rates
FY 2019/20 Mo. Revenue Collection $ Disposal $ AB 1383
Surcharge
Rev. Est. W/O Surcharge
Mo.

Revenue Annual Rev.

Analysis of Current and Proposed Residential and Commercial Rates Customer Classes/Service Type What Mid
Valley is Paid
Calculations of Proposed Rates
No. Units Annual Rev. Mo.

Revenue
Bin Replacement
City of Madera – Solid Waste Rate Study B-14
TABLE 30 : Analysis of Current and Proposed Residential and Commercial Rates Rev. Est. WITH Surcharge
FY 2020/21 FY 2020/21 New Rate
Unadjusted Adjusted w/ Surcharge
5 Cubic Yard
1x per week $87.95 $ 93.56 $ - $ 75.83 $ - $ 37.92 $ 113.75 $ 123.50 $ 43.22 $ 166.72 - $0 $0 $0 $0 2x per week $191.92 $ 185.53 $ - $ 98.58 $ - $ 75.83 $ 174.42 $ 177.84 $ 62.24 $ 240.08 - $0 $0 $0 $0 3x per week $295.84 $ 276.11 $ 552.22 $ 128.16 $ - $ 113.75 $ 241.91 $ 241.07 $ 84.37 $ 325.44 2 $482 $5,786 $651 $7,811 4x per week $391.84 $ 369.45 $ - $ 166.61 $ - $ 151.67 $ 318.27 $ 315.86 $ 110.55 $ 426.41 - $0 $0 $0 $0 5x per week $487.80 $ 461.47 $ - $ 216.59 $ - $ 189.58 $ 406.17 $ 405.68 $ 141.99 $ 547.66 - $0 $0 $0 $0 6x per week $ 553.33 $ - $ 281.56 $ - $ 227.50 $ 509.06 $ 515.03 $ 180.26 $ 695.29 - $0 $0 $0 $0 6 Cubic Yard
1x per week $113.72 $ 107.22 $ 4,074.36 $ 75.83 $ - $ 45.50 $ 121.33 $ 128.44 $ 44.95 $ 173.39 38 $4,881 $58,568 $6,589 $79,066 2x per week $216.76 $ 213.04 $ 6,178.16 $ 98.58 $ - $ 91.00 $ 189.58 $ 187.72 $ 65.70 $ 253.42 29 $5,444 $65,325 $7,349 $88,189 3x per week $319.82 $ 318.78 $ 2,550.24 $ 128.16 $ - $ 136.50 $ 264.66 $ 255.89 $ 89.56 $ 345.45 8 $2,047 $24,565 $2,764 $33,163 4x per week $427.60 $ 424.44 $ - $ 166.61 $ - $ 182.00 $ 348.61 $ 335.62 $ 117.47 $ 453.08 - $0 $0 $0 $0 5x per week $525.03 $ 529.93 $ 2,119.72 $ 216.59 $ - $ 227.50 $ 444.09 $ 430.37 $ 150.63 $ 581.01 4 $1,721 $20,658 $2,324 $27,888 6x per week $ 635.62 $ - $ 281.56 $ - $ 273.00 $ 554.56 $ 544.67 $ 190.63 $ 735.30 - $0 $0 $0 $0 LOCK $5.93 $ 10.00 $ 1,590.00 $ - $ - $ 10.00 $ 10.00 $ 3.50 $ 13.50 159 $1,590 $19,080 $2,147 $25,758 Bin Service Rate Revenue $105,209 $97,017 $126,612 $1,519,344 $170,926 $2,051,115 Bin Service (Recyclables) No Disposal Costs Included
2 Cubic Yard
1x per week $34.75 $ 31.22 $ 5,369.84 $ 75.83 $ - $ 7.58 $ 83.42 $ 48.21 $ 16.87 $ 65.08 172 $8,291 $99,496 $11,193 $134,319 2x per week $62.32 $ 55.98 $ 1,063.62 $ 151.67 $ - $ 15.17 $ 166.83 $ 96.41 $ 33.74 $ 130.15 19 $1,832 $21,982 $2,473 $29,675 3x per week $95.70 $ 80.79 $ 403.95 $ 227.50 $ - $ 22.75 $ 250.25 $ 144.62 $ 50.62 $ 195.23 5 $723 $8,677 $976 $11,714 3 Cubic Yard
1x per week $46.64 $ 41.89 $ 3,141.75 $ 84.83 $ - $ 11.38 $ 96.21 $ 56.82 $ 19.89 $ 76.70 75 $4,261 $51,136 $5,753 $69,034 2x per week $80.94 $ 72.72 $ 1,890.72 $ 160.67 $ - $ 22.75 $ 183.42 $ 108.82 $ 38.09 $ 146.90 26 $2,829 $33,950 $3,819 $45,833 3x per week $139.77 $ 109.38 $ 1,312.56 $ 236.50 $ - $ 34.13 $ 270.63 $ 160.81 $ 56.28 $ 217.10 12 $1,930 $23,157 $2,605 $31,262 4 Cubic Yard
1x per week $53.35 $ 47.92 $ 2,300.16 $ 87.83 $ - $ 15.17 $ 103.00 $ 62.22 $ 21.78 $ 83.99 48 $2,986 $35,837 $4,032 $48,380 2x per week $99.51 $ 89.40 $ 1,341.00 $ 163.67 $ - $ 30.33 $ 194.00 $ 118.01 $ 41.30 $ 159.31 15 $1,770 $21,241 $2,390 $28,675 3x per week $195.01 $ 130.89 $ 523.56 $ 239.50 $ - $ 45.50 $ 285.00 $ 173.79 $ 60.83 $ 234.62 4 $695 $8,342 $938 $11,262 4 CY Recycling Compactor
RC4/1COM $105.55 $ 95.84 $ 95.84 $ 87.83 NA $ 45.50 $ 133.33 $ 92.55 $ 32.39 $ 124.94 1 $93 $1,111 $125 $1,499 6 Cubic Yard
1x per week $71.88 $ 64.58 $ 516.64 $ 93.83 $ - $ 22.75 $ 116.58 $ 73.01 $ 25.55 $ 98.57 8 $584 $7,009 $789 $9,463 2x per week $131.48 $ 118.12 $ 1,181.20 $ 169.67 $ - $ 45.50 $ 215.17 $ 136.39 $ 47.74 $ 184.12 10 $1,364 $16,366 $1,841 $22,095 3x per week $204.69 $ 171.54 $ 1,715.40 $ 245.50 $ - $ 68.25 $ 313.75 $ 199.76 $ 69.92 $ 269.67 10 $1,998 $23,971 $2,697 $32,361 Recyclables Rate Revenue $20,658 $20,856 $29,356 $352,275 $39,631 $475,572 Current Rates
FY 2019/20 Mo. Revenue Collection $ Disposal $ AB 1383
Surcharge
Rev. Est. W/O Surcharge
Mo.

Revenue Annual Rev.

Analysis of Current and Proposed Residential and Commercial Rates Customer Classes/Service Type What Mid
Valley is Paid
Calculations of Proposed Rates
No. Units Annual Rev. Mo.

Revenue
Bin Replacement
City of Madera – Solid Waste Rate Study B-15
TABLE 30 : Analysis of Current and Proposed Residential and Commercial Rates Rev. Est. WITH Surcharge
FY 2020/21 FY 2020/21 New Rate
Unadjusted Adjusted w/ Surcharge
Compactor - Bin Service
2 Cubic Yard
1x per week $ 104.22 $ - $ 75.83 NA $ 45.50 $ 121.33 $ 52.81 $ 18.48 $ 71.29 - $0 $0 $0 $0 2x per week $ 204.80 $ - $ 98.58 NA $ 91.00 $ 189.58 $ 77.18 $ 27.01 $ 104.20 - $0 $0 $0 $0 3x per week $ 302.50 $ - $ 128.16 NA $ 136.50 $ 264.66 $ 105.21 $ 36.82 $ 142.03 - $0 $0 $0 $0 4x per week $ 406.20 $ - $ 166.61 NA $ 182.00 $ 348.61 $ 137.99 $ 48.30 $ 186.29 - $0 $0 $0 $0 5x per week $ 506.94 $ - $ 216.59 NA $ 227.50 $ 444.09 $ 176.95 $ 61.93 $ 238.89 - $0 $0 $0 $0 6x per week $ 618.80 $ - $ 281.56 NA $ 273.00 $ 554.56 $ 223.95 $ 78.38 $ 302.33 - $0 $0 $0 $0 3 Cubic Yard
1x per week $ 131.68 $ - $ 75.83 NA $ 68.25 $ 144.08 $ 58.90 $ 20.62 $ 79.52 - $0 $0 $0 $0 2x per week $ 260.68 $ - $ 98.58 NA $ 136.50 $ 235.08 $ 89.37 $ 31.28 $ 120.65 - $0 $0 $0 $0 3x per week $433.07 $ 388.88 $ 388.88 $ 128.16 NA $ 204.75 $ 332.91 $ 123.49 $ 43.22 $ 166.71 1 $123 $1,482 $167 $2,001 4x per week $ 517.44 $ - $ 166.61 NA $ 273.00 $ 439.61 $ 162.37 $ 56.83 $ 219.19 - $0 $0 $0 $0 5x per week $ 646.28 $ - $ 216.59 NA $ 341.25 $ 557.84 $ 207.42 $ 72.60 $ 280.02 - $0 $0 $0 $0 6x per week $ 774.78 $ - $ 281.56 NA $ 409.50 $ 691.06 $ 260.51 $ 91.18 $ 351.68 - $0 $0 $0 $0 4 Cubic Yard
1x per week $152.96 $ 159.46 $ 159.46 $ 75.83 NA $ 91.00 $ 166.83 $ 65.00 $ 22.75 $ 87.74 1 $65 $780 $88 $1,053 2x per week $ 315.74 $ - $ 98.58 NA $ 182.00 $ 280.58 $ 101.56 $ 35.54 $ 137.10 - $0 $0 $0 $0 3x per week $ 544.50 $ - $ 128.16 NA $ 273.00 $ 401.16 $ 141.77 $ 49.62 $ 191.39 - $0 $0 $0 $0 4x per week $ 666.20 $ - $ 166.61 NA $ 364.00 $ 530.61 $ 186.74 $ 65.36 $ 252.10 - $0 $0 $0 $0 5x per week $ 784.34 $ - $ 216.59 NA $ 455.00 $ 671.59 $ 237.89 $ 83.26 $ 321.15 - $0 $0 $0 $0 6x per week $ 940.48 $ - $ 281.56 NA $ 546.00 $ 827.56 $ 297.07 $ 103.97 $ 401.04 - $0 $0 $0 $0 5 Cubic Yard
1x per week $ 187.12 $ - $ 75.83 NA $ 113.75 $ 189.58 $ 71.09 $ 24.88 $ 95.97 - $0 $0 $0 $0 2x per week $ 371.06 $ - $ 98.58 NA $ 227.50 $ 326.08 $ 113.74 $ 39.81 $ 153.55 - $0 $0 $0 $0 3x per week $ 552.22 $ - $ 128.16 NA $ 341.25 $ 469.41 $ 160.05 $ 56.02 $ 216.07 - $0 $0 $0 $0 4x per week $ 738.90 $ - $ 166.61 NA $ 455.00 $ 621.61 $ 211.11 $ 73.89 $ 285.00 - $0 $0 $0 $0 5x per week $ 922.94 $ - $ 216.59 NA $ 568.75 $ 785.34 $ 268.35 $ 93.92 $ 362.28 - $0 $0 $0 $0 6x per week $ 1,106.66 $ - $ 281.56 NA $ 682.50 $ 964.06 $ 333.63 $ 116.77 $ 450.39 - $0 $0 $0 $0 6 Cubic Yard
1x per week $ 214.44 $ - $ 75.83 NA $ 136.50 $ 212.33 $ 77.18 $ 27.01 $ 104.20 - $0 $0 $0 $0 2x per week $ 426.08 $ - $ 98.58 NA $ 273.00 $ 371.58 $ 125.93 $ 44.07 $ 170.00 - $0 $0 $0 $0 3x per week $ 637.56 $ - $ 128.16 NA $ 409.50 $ 537.66 $ 178.33 $ 62.42 $ 240.75 - $0 $0 $0 $0 4x per week $ 848.88 $ - $ 166.61 NA $ 546.00 $ 712.61 $ 235.49 $ 82.42 $ 317.91 - $0 $0 $0 $0 5x per week $ 1,059.86 $ - $ 216.59 NA $ 682.50 $ 899.09 $ 298.82 $ 104.59 $ 403.41 - $0 $0 $0 $0 6x per week $ 1,271.24 $ - $ 281.56 NA $ 819.00 $ 1,100.56 $ 370.19 $ 129.57 $ 499.75 - $0 $0 $0 $0 Compactor Rate Revenue $548 $548 $188 $2,262 $254 $3,053 Current Rates
FY 2019/20 Mo. Revenue Collection $ Disposal $ AB 1383
Surcharge
Rev. Est. W/O Surcharge
Mo.

Revenue Annual Rev.

Analysis of Current and Proposed Residential and Commercial Rates Customer Classes/Service Type What Mid
Valley is Paid
Calculations of Proposed Rates
No. Units Annual Rev. Mo.

Revenue
Bin Replacement
City of Madera – Solid Waste Rate Study B-16
TABLE 30 : Analysis of Current and Proposed Residential and Commercial Rates Rev. Est. WITH Surcharge
FY 2020/21 FY 2020/21 New Rate
Unadjusted Adjusted w/ Surcharge
Compactor - Bin Service
Organic Waste
96 Gallon Container
1x per week $11.03 $ 10.28 $ 133.64 $ 15.59 NA $ 7.21 $22.79 10.28 $ $ 3.60 $ 13.88 13 $134 $1,604 $180 $2,165 2x per week $22.07 $ 20.57 $ 61.71 $ 31.17 NA $ 14.41 $45.59 20.56 $ $ 7.20 $ 27.75 3 $62 $740 $83 $999 3x per week $33.11 $ 30.85 $ - $ 46.76 NA $ 21.62 $68.38 30.84 $ $ 10.79 $ 41.63 - $0 $0 $0 $0 4x per week $44.16 $ 41.13 $ - $ 62.34 NA $ 28.83 $91.17 41.12 $ $ 14.39 $ 55.51 - $0 $0 $0 $0 5x per week $55.19 $ 51.41 $ - $ 77.93 NA $ 36.04 $113.96 51.40 $ $ 17.99 $ 69.38 - $0 $0 $0 $0 2 Cubic Yard Bin $ -
1x per week $45.26 $ 42.18 $ 548.34 $ 75.83 $ - $ 15.17 $91.00 44.68 $ $ 15.64 $ 60.32 13 $581 $6,971 $784 $9,410 2x per week $82.78 $ 77.36 $ 773.60 $ 151.67 $ - $ 30.33 $182.00 89.37 $ $ 31.28 $ 120.65 10 $894 $10,724 $1,206 $14,478 3x per week $126.93 $ 118.54 $ 474.16 $ 227.50 $ - $ 45.50 $273.00 134.05 $ $ 46.92 $ 180.97 4 $536 $6,435 $724 $8,687 4x per week $165.54 $ 157.07 $ - $ 303.33 $ - $ 60.67 $364.00 178.74 $ $ 62.56 $ 241.29 - $0 $0 $0 $0 5x per week $204.19 $ 193.84 $ - $ 379.17 $ - $ 75.83 $455.00 223.42 $ $ 78.20 $ 301.62 - $0 $0 $0 $0 3 Cubic Yard Bin $ -
1x per week $56.29 $ 52.77 $ - $ 84.83 $ - $ 22.75 $107.58 51.54 $ $ 18.04 $ 69.57 - $0 $0 $0 $0 2x per week $104.86 $ 98.54 $ - $ 160.67 $ - $ 45.50 $206.17 98.25 $ $ 34.39 $ 132.64 - $0 $0 $0 $0 3x per week $160.05 $ 150.30 $ - $ 236.50 $ - $ 68.25 $304.75 144.97 $ $ 50.74 $ 195.71 - $0 $0 $0 $0 4x per week $203.60 $ 197.07 $ - $ 312.33 $ - $ 91.00 $403.33 191.68 $ $ 67.09 $ 258.77 - $0 $0 $0 $0 5x per week $251.82 $ 243.84 $ 243.84 $ 388.17 $ - $ 113.75 $501.92 238.40 $ $ 83.44 $ 321.84 1 $238 $2,861 $322 $3,862 Total Organic Rate Revenue $1,645 $2,235 $2,444 $29,334 $3,300 $39,601 Total Comm. Rate Revenue $133,342.27 $126,326.22 $164,306 $1,971,668 $221,813 $2,661,752 Total Resid. & Comm. $364,200.47 $461,565.07 $483,252 $5,799,024 $652,390 $7,828,683 City Admin Service Fee
SFR Admin Service Fee $2.33 $2.33 $ 32,342.73 $2.33 $2.33 13,881 $32,343 $388,113 $32,343 $388,113 MFR Admin Service Fee $2.33 $2.33 $ 1,039.18 $2.33 $2.33 446 $1,039 $12,470 $1,039 $12,470 Comm/Lock Admin Service Fee $2.33 $2.33 $ 370.47 $2.33 $2.33 159 $370 $4,446 $370 $4,446 Total Admin Service Fee $ 33,752 $33,752 $33,752 $405,029 $33,752 $405,029 Total Resid./Comm./Admin $397,952.85 $495,317.45 $517,004 $6,204,053 $686,143 $8,233,712 Current Rates
FY 2019/20 Mo. Revenue Collection $ Disposal $ AB 1383
Surcharge
Rev. Est. W/O Surcharge
Mo.

Revenue Annual Rev.

Analysis of Current and Proposed Residential and Commercial Rates Customer Classes/Service Type What Mid
Valley is Paid
(Surcharge does not apply)
Calculations of Proposed Rates
No. Units Annual Rev. Mo.

Revenue
Bin Replacement
I I
"
"
"
I I
City of Madera – Solid Waste Rate Study B-17
City of Madera – Solid Waste Rate Study B-18
TABLE 31 : Proposed Rates (Include Street Sweeping, Admin Fee & SB 1383 Surcharge) FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Single Family Residential
Three Standard Containers $ 23.22 $ 32.00 $ 34.97 $ 38.23 $ 41.82 $ 45.77 1/2 Resid. (Grey & Blue only) $ 16.02 $ 25.68 $ 28.02 $ 30.58 $ 33.41 $ 36.52 Additional Grey Container $ 4.73 $ 23.35 $ 25.69 $ 28.25 $ 31.08 $ 34.19 Additional Green Container $ 2.17 $ 8.27 $ 9.09 $ 10.00 $ 11.00 $ 12.11 Additional Blue Container $ 2.17 $ 8.27 $ 9.09 $ 10.00 $ 11.00 $ 12.11 Residential Carry-Out Service
Two Containers $ 55.32 $ 42.21 $ 46.20 $ 50.58 $ 55.41 $ 60.72 Each Additional Container $ 11.44 $ 16.54 $ 18.19 $ 20.01 $ 22.01 $ 24.21 Multi-Family Residential
First Two Dwelling Units (each) $ 23.22 $ 32.00 $ 34.97 $ 38.23 $ 41.82 $ 45.77 Each Additional Dwelling Unit $ 22.59 $ 29.45 $ 32.16 $ 35.14 $ 38.42 $ 42.03 Commercial
Two Containers $ 29.46 $ 42.21 $ 46.20 $ 50.58 $ 55.41 $ 60.72 Additional Container $ 40.85 $ 34.77 $ 38.25 $ 42.08 $ 46.28 $ 50.91 Commercial Carry-Out Service
Two Containers $ 57.64 $ 62.63 $ 68.66 $ 75.29 $ 82.59 $ 90.61 Each Additional Container $ 17.70 $ 30.15 $ 33.16 $ 36.48 $ 40.13 $ 44.14

1. Note: admin Fee only applies to initial service charges, not on additional containers.

Current Rates
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Bin Service (Solid Waste)
2 Cubic Yard
1x per week $ 52.11 $ 146.72 $ 161.39 $ 177.53 $ 195.28 $ 214.81 2x per week $ 102.40 $ 200.07 $ 220.07 $ 242.08 $ 266.29 $ 292.92 3x per week $ 151.25 $ 265.42 $ 291.96 $ 321.16 $ 353.28 $ 388.60 4x per week $ 203.10 $ 346.38 $ 381.02 $ 419.12 $ 461.03 $ 507.14 5x per week $ 253.47 $ 447.63 $ 492.39 $ 541.63 $ 595.79 $ 655.37 3 Cubic Yard
1x per week $ 65.84 $ 153.38 $ 168.72 $ 185.59 $ 204.15 $ 224.57 2x per week $ 130.34 $ 213.40 $ 234.74 $ 258.22 $ 284.04 $ 312.45 3x per week $ 194.44 $ 285.43 $ 313.97 $ 345.37 $ 379.90 $ 417.90 4x per week $ 258.72 $ 373.06 $ 410.36 $ 451.40 $ 496.54 $ 546.19 5x per week $ 323.14 $ 480.97 $ 529.07 $ 581.98 $ 640.18 $ 704.19 4 Cubic Yard
1x per week $ 79.73 $ 160.05 $ 176.06 $ 193.66 $ 213.03 $ 234.33 2x per week $ 157.87 $ 226.74 $ 249.42 $ 274.36 $ 301.79 $ 331.97 3x per week $ 272.25 $ 305.43 $ 335.98 $ 369.58 $ 406.53 $ 447.19 4x per week $ 333.10 $ 399.73 $ 439.71 $ 483.68 $ 532.04 $ 585.25 5x per week $ 392.17 $ 514.32 $ 565.75 $ 622.32 $ 684.56 $ 753.01 5 Cubic Yard
3x per week $ 276.11 $ 325.44 $ 357.99 $ 393.78 $ 433.16 $ 476.48 6 Cubic Yard
1x per week $ 107.22 $ 173.39 $ 190.73 $ 209.80 $ 230.78 $ 253.86 2x per week $ 213.04 $ 253.42 $ 278.76 $ 306.64 $ 337.30 $ 371.03 3x per week $ 318.78 $ 345.45 $ 379.99 $ 417.99 $ 459.79 $ 505.77 5x per week $ 529.93 $ 581.01 $ 639.11 $ 703.02 $ 773.32 $ 850.65 Customer Classes/Service Type Current Rates
Proposed Rates
Customer Classes/Service Type Proposed Rates (Include Street Sweeping & SB 1383 Surcharge) (Include Street Sweeping, Admin Fee & SB 1383 Surcharge) 1 City of Madera – Solid Waste Rate Study B-19
TABLE 32 : Proposed Rates (Include Street Sweeping, Admin Fee & SB 1383 Surcharge) Current Rates
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Bin Service (Recyclables)
2 Cubic Yard
1x per week $ 31.22 $ 65.08 $ 71.58 $ 78.74 $ 86.62 $ 95.28 2x per week $ 55.98 $ 130.15 $ 143.17 $ 157.49 $ 173.24 $ 190.56 3x per week $ 80.79 $ 195.23 $ 214.75 $ 236.23 $ 259.85 $ 285.84 3 Cubic Yard
1x per week $ 41.89 $ 76.70 $ 84.37 $ 92.81 $ 102.09 $ 112.30 2x per week $ 72.72 $ 146.90 $ 161.59 $ 177.75 $ 195.52 $ 215.08 3x per week $ 109.38 $ 217.10 $ 238.81 $ 262.69 $ 288.96 $ 317.85 4 Cubic Yard
1x per week $ 47.92 $ 83.99 $ 92.39 $ 101.63 $ 111.79 $ 122.97 2x per week $ 89.40 $ 159.31 $ 175.24 $ 192.76 $ 212.04 $ 233.24 3x per week $ 130.89 $ 234.62 $ 258.08 $ 283.89 $ 312.28 $ 343.51 6 Cubic Yard
1x per week $ 64.58 $ 98.57 $ 108.43 $ 119.27 $ 131.20 $ 144.32 2x per week $ 118.12 $ 184.12 $ 202.53 $ 222.79 $ 245.07 $ 269.57 3x per week $ 171.54 $ 269.67 $ 296.64 $ 326.31 $ 358.94 $ 394.83 Compactor - Bin Service
3 Cubic Yard
3x per week $ 388.88 $ 166.71 $ 183.38 $ 201.72 $ 221.89 $ 244.08 4 Cubic Yard
1x per week $ 159.46 $ 87.74 $ 96.52 $ 106.17 $ 116.79 $ 128.47 Roll-Off Container (Not a City rate)
25 Cubic Yard
Monthly Rent $ 181.13 $ 181.13 $ 199.24 $ 219.17 $ 241.08 $ 265.19 Per Load $ 185.25 $ 185.25 $ 203.78 $ 224.15 $ 246.57 $ 271.22 Current Rates
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Organic Waste (Include Street Sweeping & SB 1383 Surcharge) 96 Gallon Container
1x per week $ 10.28 $ 13.88 $ 15.26 $ 16.79 $ 18.47 $ 20.32 2x per week $ 20.57 $ 27.75 $ 30.53 $ 33.58 $ 36.94 $ 40.63 2 Cubic Yard Bin
1x per week $ 42.18 $ 60.32 $ 66.36 $ 72.99 $ 80.29 $ 88.32 2x per week $ 77.36 $ 120.65 $ 132.71 $ 145.98 $ 160.58 $ 176.64 3x per week $ 118.54 $ 180.97 $ 199.07 $ 218.98 $ 240.87 $ 264.96 3 Cubic Yard Bin
5x per week $ 243.84 $ 321.84 $ 354.02 $ 389.42 $ 428.36 $ 471.20 Miscellaneous Rates and Charges (Does Not Include Street Sweepig or SB 1383 Surcharge) Locking Service Fee (Optional) $10.00 10.00 $ $ 11.00 $ 12.10 $ 13.31 $ 14.64 Lost Lock Fee $15.00 15.00 $ $ 16.50 $ 18.15 $ 19.97 $ 21.96 New or Replacement Can $53.30 53.30 $ $ 58.63 $ 64.49 $ 70.94 $ 78.04 Delivery Charge $10.00 10.00 $ $ 11.00 $ 12.10 $ 13.31 $ 14.64 Street Cleaning Service
Per foot of street exposure $0.0248
Additional Cleaning per foot $0.0125 (Now Included in Solid Waste Rates) Customer Classes/Service Type Proposed Rates
Customer Classes/Service Type Proposed Rates (Include Street Sweeping & SB 1383 Surcharge) City of Madera – Solid Waste Rate Study B-20
TABLE 33 : Customer Bill Comparisons
Single Family Residential Current
Solid Waste Service Type FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Single Family Residential $ 23.22 $ 32.00 $ 34.97 $ 38.23 $ 41.82 $ 45.77 Multi-Family Residential Current
Solid Waste Service Type FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 First Two Dwelling Units (each) $ 23.22 $ 32.00 $ 34.97 $ 38.23 $ 41.82 $ 45.77 Each Additional Dwelling Unit $ 22.59 $ 29.45 $ 32.16 $ 35.14 $ 38.42 $ 42.03 Commercial Current
Solid Waste Service Type FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Commercial Two Containers $ 29.46 $ 42.21 $ 46.20 $ 50.58 $ 55.41 $ 60.72 Commercial Additional Container $ 40.85 $ 34.77 $ 38.25 $ 42.08 $ 46.28 $ 50.91 Bin Service (Solid Waste) Current
Solid Waste Service Type FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Commercial 2 Cubic Yard - 1X/Week $ 52.11 $ 146.72 $ 161.39 $ 177.53 $ 195.28 $ 214.81 Commercial 3 Cubic Yard - 1X/Week $ 65.84 $ 153.38 $ 168.72 $ 185.59 $ 204.15 $ 224.57 Bin Service (Recyclables) Current
Solid Waste Service Type FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Recyclables 2 Cubic Yard - 1X/Week $ 31.22 $ 65.08 $ 71.58 $ 78.74 $ 86.62 $ 95.28 Recyclables 3 Cubic Yard - 1X/Week $ 41.89 $ 76.70 $ 84.37 $ 92.81 $ 102.09 $ 112.30 Organic Waste Current
Solid Waste Service Type FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Organics 96 Gallon Container - 1X/Week $ 10.28 $ 11.08 $ 12.19 $ 13.41 $ 14.75 $ 16.22 Organics 2 Cubic Yard Bin - 1X/Week $ 42.18 $ 45.64 $ 50.21 $ 55.23 $ 60.75 $ 66.83 Proposed New Rates ($/month)
Proposed New Rates ($/month)
Proposed New Rates ($/month)
Proposed New Rates ($/month)
Proposed New Rates ($/month)
Proposed New Rates ($/month)
------
City of Madera – Solid Waste Rate Study B-21
City of Madera Tonnages for 2020 1
Sum of Allocated Tons
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Grand Total MADERA
COM 1,383.6 1,279.8 1,376.2 1,189.9 1,208.0 1,344.1 1,255.5 1,227.5 1,272.0 1,269.1 1,246.7 1,364.8 15,417.2 FL ORGANICS 21.2 21.4 28.5 16.6 22.6 23.3 17.3 23.6 14.6 25.4 25.2 23.5 263.1 FL RECYCLE 147.7 131.9 152.2 122.3 126.1 152.3 131.0 133.9 132.6 118.9 126.0 140.9 1,615.9 FL TRASH 1,214.7 1,126.4 1,195.5 1,051.0 1,059.3 1,168.5 1,107.2 1,070.1 1,124.8 1,124.8 1,095.5 1,200.4 13,538.2 RES 2,434.8 2,187.0 2,631.7 3,232.0 2,840.4 2,617.0 2,763.4 2,455.8 2,634.2 2,709.9 2,588.7 3,055.4 32,150.3 SL ORGANICS 627.2 698.9 911.7 1,266.7 936.6 801.3 710.6 694.2 761.6 737.3 687.2 874.0 9,707.1 SL RECYCLE 330.0 271.9 312.1 352.0 333.2 325.3 351.8 295.5 318.3 331.9 360.8 422.1 4,004.7 SL TRASH 1,477.7 1,216.2 1,408.0 1,613.3 1,570.6 1,490.5 1,701.0 1,466.1 1,554.4 1,640.7 1,540.7 1,759.3 18,438.5 Grand Total 3,818.5 3,466.8 4,007.9 4,421.9 4,048.3 3,961.1 4,018.8 3,683.3 3,906.2 3,979.0 3,835.4 4,420.2 47,567.5

1. Source files: 2020 Tonnages.xlsx
Sum of Allocated Tons
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Grand Total MADERA
Residential - SL TRASH 1,477.7 1,216.2 1,408.0 1,613.3 1,570.6 1,490.5 1,701.0 1,466.1 1,554.4 1,640.7 1,540.7 1,759.3 18,438.5 Commercial - FL TRASH 1,214.7 1,126.4 1,195.5 1,051.0 1,059.3 1,168.5 1,107.2 1,070.1 1,124.8 1,124.8 1,095.5 1,200.4 13,538.2 Total Trash Tonnages 2,692.4 2,342.6 2,603.5 2,664.3 2,629.9 2,659.0 2,808.1 2,536.1 2,679.2 2,765.5 2,636.3 2,959.7 31,976.6 Residential - SL RECYCLE 330.0 271.9 312.1 352.0 333.2 325.3 351.8 295.5 318.3 331.9 360.8 422.1 4,004.7 Commercial - FL RECYCLE 147.7 131.9 152.2 122.3 126.1 152.3 131.0 133.9 132.6 118.9 126.0 140.9 1,615.9 Total Recycle Tonnages 477.7 403.8 464.3 474.2 459.3 477.6 482.8 429.4 450.9 450.8 486.8 563.1 5,620.6 Residential - SL ORGANIC 627.2 698.9 911.7 1,266.7 936.6 801.3 710.6 694.2 761.6 737.3 687.2 874.0 9,707.1 Commercial - FL ORGANIC 21.2 21.4 28.5 16.6 22.6 23.3 17.3 23.6 14.6 25.4 25.2 23.5 263.1 Total Organics Tonnages 648.4 720.3 940.2 1,283.3 959.2 824.6 727.9 717.8 776.2 762.7 712.4 897.5 9,970.3 Grand Total 3,818.5 3,466.8 4,007.9 4,421.9 4,048.3 3,961.1 4,018.8 3,683.3 3,906.2 3,979.0 3,835.4 4,420.2 47,567.5

I I I I I I I I I I I
City of Madera – Solid Waste Rate Study B-22
City of Madera Tonnages for 2020 1
Residential - SL TRASH 18,438.5 57.7%
Commercial - FL TRASH 13,538.2 42.3%
Total Trash Tonnages 31,976.6 100.0%
Residential - SL RECYCLE 4,004.7 71.3%
Commercial - FL RECYCLE 1,615.9 28.7%
Total Recycle Tonnages 5,620.6 100.0%
Residential - SL ORGANICS 9,707.1 97.4%
Commercial - FL ORGANICS 263.1 2.6%
Total Organics Tonnages 9,970.3 100.0%
Grand Total 47,567.5 N.A. 100.0%

1. Source files: 2020 Tonnages.xlsx
Residential - SL TRASH 18,438.5 57.4%
Residential - SL RECYCLE 4,004.7 12.5%
Residential - SL ORGANICS 9,707.1 30.2%
Total Residential Tonnages 32,150.3 100.0%
Commercial - FL TRASH 13,538.2 87.8%
Commercial - FL RECYCLE 1,615.9 10.5%
Commercial - FL ORGANICS 263.1 1.7%
Total Commercial Tonnages 15,417.2 100.0%
Grand Total 47,567.5 N.A.

1. Source files: 2020 Tonnages.xlsx
Sum of Allocated Tons
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Grand Total MADERA
COM 1,383.6 1,279.8 1,376.2 1,189.9 1,208.0 1,344.1 1,255.5 1,227.5 1,272.0 1,269.1 1,246.7 1,364.8 15,417.2 FL ORGANICS 21.2 21.4 28.5 16.6 22.6 23.3 17.3 23.6 14.6 25.4 25.2 23.5 263.1 FL RECYCLE 147.7 131.9 152.2 122.3 126.1 152.3 131.0 133.9 132.6 118.9 126.0 140.9 1,615.9 FL TRASH 1,214.7 1,126.4 1,195.5 1,051.0 1,059.3 1,168.5 1,107.2 1,070.1 1,124.8 1,124.8 1,095.5 1,200.4 13,538.2 RES 2,434.8 2,187.0 2,631.7 3,232.0 2,840.4 2,617.0 2,763.4 2,455.8 2,634.2 2,709.9 2,588.7 3,055.4 32,150.3 SL ORGANICS 627.2 698.9 911.7 1,266.7 936.6 801.3 710.6 694.2 761.6 737.3 687.2 874.0 9,707.1 SL RECYCLE 330.0 271.9 312.1 352.0 333.2 325.3 351.8 295.5 318.3 331.9 360.8 422.1 4,004.7 SL TRASH 1,477.7 1,216.2 1,408.0 1,613.3 1,570.6 1,490.5 1,701.0 1,466.1 1,554.4 1,640.7 1,540.7 1,759.3 18,438.5 Grand Total 3,818.5 3,466.8 4,007.9 4,421.9 4,048.3 3,961.1 4,018.8 3,683.3 3,906.2 3,979.0 3,835.4 4,420.2 47,567.5

1. Source files: 2020 Tonnages.xlsx
Solid Waste Disposal Components
% of Total

67.2%

11.8%

21.0%
Solid Waste Disposal Components
Disposal Tonnages by Type
Residential vs. Commercial
Disposal Tonnages
2020 Total % of
Component
2020 Total % of
Component

I I I I I I I

REPORT TO CITY COUNCIL
Approved by: Council Meeting of: April 6, 2022
_________________________________ Agenda Number: ___________ Wendy Silva, Director of Human Resources
_________________________________
Arnoldo Rodriguez, City Manager
SUBJECT:

Amending the Municipal Code to remove the superseded section relating to the appointment process for members of the Civil Service Commission
RECOMMENDATION:

Waive further reading and introduce an ordinance amending §2-2.303 of Title II of the Madera Municipal Code relating to the Civil Service Commission SUMMARY:

The City Council recently adopted an ordinance amending §2-3.101 of Title II, Chapter 3 of the Madera Municipal Code relating to the appointment process for all City Boards, Committees, and Commissions. This new code section supersedes any existing processes set by code, resolution, and/or minute order.

Section 2-2.303 of the Municipal Code provides an appointment process for Civil Service Commissioners and sets the term for Commissioner appointments, which now refers to a section of the code that was replaced by the aforementioned update. The proposed revision will bring the section related to the Civil Service Commission up to date with current code.

DISCUSSION:

The Civil Service Commission (Commission) is established in Chapter 2 of the City’s Municipal Code. The Commission reviews recruitments and certifies the list of eligible candidates for full time employment with the City. The Commission also is the hearing body for appeals related to employment practices, including employee discipline, application of the City’s Personnel Rules, and hiring practices.

Currently, §2-2.303 of the Municipal Code provides an appointment process for Civil Service Commissioners and sets the term for Commissioner appointments. This appointment process D-2
and term designation are no longer applicable as the recently approved modifications to §2-

3.101 provide for the appointment process to be followed for all City boards, Committees, and Commissions as well as the term of appointees. The proposed ordinance would update the code section regarding the Civil Service Commission to reference §2-3.101 as the appointment process and term of appointees. The proposed ordinance is a clean-up item to ensure there is no confusion created by having a code section published that is no longer applicable.

FINANCIAL IMPACT:

There is no anticipated financial impact beyond nominal costs associated with publication of the ordinance in the local newspaper. Adequate funds have been budgeted to cover publication fees.

CONSISTENCY WITH THE VISION MADERA 2025 PLAN:

The information contained herein is not addressed by the Vision Madera 2025 plan, nor is the information in conflict with that plan.

ALTERNATIVES:

Council may direct staff to draft further revisions to the code regarding the Civil Service Commission.

ATTACHMENTS:

1. Proposed Ordinance amending §2-2.303 of Title II of the Madera Municipal Code relating to Civil Service Commission
ORDINANCE NO. 22-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MADERA, CALIFORNIA AMENDING SECTION 2-2.303 OF TITLE II, CHAPTER 2 OF THE MADERA

MUNICIPAL CODE RELATING TO THE CIVIL SERVICE COMMISSION THE CITY COUNCIL OF THE CITY OF MADERA DOES ORDAIN AS FOLLOWS:

SECTION 1. Section 2-2.303 of the Madera Municipal Code is amended to read as follows:
§2-2.303 CIVIL SERVICE COMMISSION.
(A) There is created a Civil Service Commission (Commission) to consist of seven members to be appointed as provided in §2-3.101.
(B) Chairperson.

Annually, the Commission shall, by majority vote, designate one of its members as the chair of the Commission in a manner consistent with the Civil Service Commission Rules of Procedure.
(C) Qualifications.

Members of the Civil Service Commission shall be residents of the city. No person shall be appointed to the Commission who holds any employment with the city. Nor shall any member be employed by or under the direct supervision of any current member of the City Council.

SECTION 2. SEVERANCE. If any section, subsection, phrase, or clause of this ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this ordinance.

SECTION 3. CEQA. The City Council finds this ordinance is not a project under the California Environmental Quality Act because it can be seen with certainty that it will not have a significant effect or physical change to the environment. See Title 14, California Code of Regulations, Section 15061 (b) (3).

SECTION 4. PUBLICATION. This ordinance shall be published in accordance with the provisions of Government Code Section 36933.
*****************

REPORT TO CITY COUNCIL
Approved by:
_________________________________
Council Meeting of: April 6, 2022
Agenda Number: D-3
Keith Helmuth, Department Director
_________________________________
Arnoldo Rodriguez, City Manager
SUBJECT:

Consultant Services Agreement with Blair, Church, and Flynn Consulting Engineers, Inc (BCF) for design services for shoulder paving and sidewalks
RECOMMENDATION:

1. Adopt a Resolution approving a consultant services agreement with Blair, Church, and Flynn Consulting Engineers, Inc in the amount of $264,750 for engineering design services for shoulder paving on Raymond Road - City Project R-37, Storey Road – City Project R-60, Pecan Avenue – City Project R-67, and sidewalks on Schnoor Avenue – City Project R-58, and Washington School area – City Project R-93.

2. Adopt a Resolution Approving Funding Amendment Appropriating $75,000 to the City of Madera Fiscal Year (FY) 2021/22 Capital Projects Budget for the engineering design services for shoulder paving on Raymond Road - City Project R-37, Storey Road – City Project R-60, Pecan Avenue – City Project R-67, and sidewalks on Schnoor Avenue – City Project R-58, and Washington School area – City Project R-93.

SUMMARY:

The City received Congestion Mitigation and Air Quality (CMAQ) Grants for the aforementioned projects. In order to expedite the projects, staff is proposing that the City retain an outside firm to assist in the design of the various improvements. The consultant services agreement with BCF is for design engineering and preparation of construction plans and specifications including an engineer’s estimate of construction costs.

BACKGROUND:

These projects are part of the Madera County 2021 Federal Transportation Improvement Program (FTIP) Fiscal Years (FY) 2020-21 through 2023-24. The Madera County Transportation Commission (MCTC) allocated FTIP CMAQ funds for the shoulder paving and sidewalk projects listed below.
▪ Raymond Road shoulder paving, between Cleveland Avenue northeast to the City Limits ▪ Storey Road shoulder paving and curb and gutter, fronting Millview Park ▪ Pecan Avenue shoulder paving, Various locations from Pine Street to Highway 99 ▪ Washington School sidewalks and access ramps on Austin and Delvalle Avenues from E.

Lincoln to Rush Street
▪ Schnoor Avenue sidewalks and access ramps from the Fresno River to Sunset Avenue In accordance with the City’s Capital Improvement Program (CIP), construction of shoulder paving and sidewalk projects will be funded in FY 2022/23 primarily by CMAQ funds with matching funds from Measure T and Local Transportation Funds (LTF) Streets funds.

In order to meet obligation deadlines imposed by the CMAQ funding, staff determined hiring a consultant for design services for these projects was the appropriate course. In-house engineering staff would not be able to meet those deadlines given the current workload. A Request for Proposals (RFP) for the engineering design services was released for advertisement on October 28, 2021, on the City’s website, Madera Tribune, and eBidboard.

Individually, these five projects are small, so they were grouped together to better attract more engineering firms to provide proposals. When the RFP was released, the Engineering Department reached out to 16 engineering firms in the area. Four did not respond to the initial solicitation, five firms declined to bid, and seven firms considered responding to the RFP. Additionally, the due date was extended from December 1 to December 13, 2021 to provide the seven firms additional time. BCF was the only firm that submitted a proposal. Table 1 provides a summary.

Negotiations commenced to come to an agreement on contract terms for the final scope of work and fees. Additional funding is needed for the preliminary engineering phases for 4 of the 5 projects as identified in Exhibit A to the Budget Amendment Resolution. The project estimates were outdated, and consultant engineering fees are typically higher than utilizing in-house staff.

FINANCIAL IMPACT:

There is no fiscal impact to the City's General Fund. All engineering design funding is from CMAQ funds, LTF – Streets, and Measure T – Environmental Enhancement funds.

Exhibit A to the resolution appropriates $60,000 from the unprogrammed LTF funds and $15,000 from the unappropriated fund balance of Measure T Environmental Enhancement funds.

CONSISTENCY WITH THE VISION MADERA 2025 PLAN:

Strategy 433 - Maintain or improve air quality through innovative programs and cooperative local plans. Ensure adherence to State and Federal air- quality policies.

ALTERNATIVES:

As an alternative, Council may direct staff to not enter into an agreement with BCF. Delays could result in loss of funds. As noted in the report, completing these projects in-house could jeopardize progress on other priority CIP projects.

ATTACHMENTS:

1. Resolution approving Agreement
a. Exhibit A – Consultant Services Agreement
i. Exhibit A – Scope of Work
ii. Exhibit B – Cost Proposal

2. Budget Amendment Resolution
a. Exhibit A – Budget Amendment Sheet

3. Location Map

ATTACHMENT 1
RESOLUTION NO. 22-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MADERA,

CALIFORNIA APPROVING A CONSULTANT SERVICES AGREEMENT WITH

BLAIR, CHURCH AND FLYNN CONSULTING ENGINEERS, INC IN THE AMOUNT OF $264,750.00 FOR ENGINEERING DESIGN SERVICES FOR SHOULDER PAVING ON RAYMOND ROAD - CITY PROJECT R-37, STOREY ROAD - CITY PROJECT R-60, PECAN AVENUE - CITY PROJECT R-67, AND SIDEWALKS ON SCHNOOR AVENUE - CITY PROJECT R-58, AND
WASHINGTON SCHOOL AREA - CITY PROJECT R-93.

WHEREAS, the City has a need for new shoulder paving and sidewalks at five project locations (Project); and
WHEREAS, engineering services by a professional firm are required for the Project; and WHEREAS, the City of Madera (City) published a Request for Proposal (RFP) on the City’s website and solicited firms to provide a proposal for the Project; and WHEREAS, the City received one proposal in response to the RFP; and WHEREAS, Blair, Church, and Flynn Consulting Engineers, Inc. was selected based on their experience and knowledge of the proposed project.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF MADERA hereby resolves, finds, determines and orders as follows:

1. The above recitals are true and correct.

2. Consultant Services Agreement with Blair, Church, and Flynn Consulting Engineers, Inc. in the amount of $264,750 for engineering design services for shoulder paving on Raymond Road (City Project (CP) R-37), Storey Road (CP R-60), Pecan Avenue (CP R67), and sidewalks on Schnoor Avenue (CP R-58), and proximate to Washington Elementary School (CP R-93) is approved.

3. This resolution is effective immediately.
* * *

EXHIBIT A
1 CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF MADERA AND BLAIR, CHURCH & FLYNN CONSULTING ENGINEERS, INC.

This Agreement for Consultant Services (“Agreement”) is made and entered into this day of April, 2022 between the City of Madera, a municipal corporation of the State of California, ("CITY"), and ("CONSULTANT").

RECITALS
WHEREAS, CITY plans to construct shoulder paving and sidewalks at various locations in the City of Madera, City Projects R-37, R-58, R-60, R-67, R-93 (“PROJECT”); and WHEREAS, CITY needs professional engineering services for the (“PROJECT”); and WHEREAS, CITY engaged in a competitive Request for Proposals process for the desired work; and
WHEREAS, CONSULTANT is qualified and certified to provide the required professional services and is knowledgeable of Federal, State and City standard policies and regulatory requirements; and WHEREAS, CITY desires to hire CONSULTANT for to provide professional services for the (“PROJECT”).

AGREEMENT
NOW THEREFORE, the Parties incorporate the foregoing recitals and agree as follows:

ARTICLE I. STATEMENT OF WORK
A. Scope of Services
CONSULTANT shall provide the professional services as set forth in Exhibit 'A', Scope of Services, attached hereto and incorporated herein by reference as if fully set forth. CONSULTANT’s Project Manager shall meet with CITY’s Project Manager, as needed, to discuss progress on the project(s).

Environmental documents are not considered complete until a Caltrans District Senior Environmental Planner signs the Categorical Exclusion, a Caltrans Deputy District Director signs the Finding of No Significant Impact, or the Caltrans District Director signs the Record of Decision (see LAPM Chapter 6: Environmental Procedures, and the Standard Environmental Reference).

B. CITY Obligations
The CITY shall provide CONSULTANT with the following:
a. Project Manager to work and coordinate with CONSULTANT. b. Timely review of all submittals.
c. Payment of fees for permits.

11 ARTICLE XV. CONFLICT OF INTEREST
A. During the term of this AGREEMENT, the CONSULTANT shall disclose any financial, business, or other relationship with CITY that may have an impact upon the outcome of this AGREEMENT or any ensuing CITY construction project. The CONSULTANT shall also list current clients who may have a financial interest in the outcome of this AGREEMENT or any ensuing CITY construction project which will follow.

B. CONSULTANT certifies that it has disclosed to CITY any actual, apparent, or potential conflicts of interest that may exist relative to the services to be provided pursuant to this AGREEMENT.

CONSULTANT agrees to advise CITY of any actual, apparent or potential conflicts of interest that may develop subsequent to the date of execution of this AGREEMENT. CONSULTANT further agrees to complete any statements of economic interest if required by either CITY ordinance or State law.

C. The CONSULTANT hereby certifies that it does not now have nor shall it acquire any financial or business interest that would conflict with the performance of services under this AGREEMENT.

D. The CONSULTANT hereby certifies that the CONSULTANT or subconsultant and any firm affiliated with the CONSULTANT or subconsultant that bids on any construction contract or on any Agreement to provide construction inspection for any construction project resulting from this AGREEMENT, has established necessary controls to ensure a conflict of interest does not exist. An affiliated firm is one, which is subject to the control of the same persons, through joint ownership or otherwise.

ARTICLE XVI. REBATES, KICKBACKS OR OTHER UNLAWFUL CONSIDERATION The CONSULTANT warrants that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any CITY employee. For breach or violation of this warranty, CITY shall have the right, in its discretion, to terminate this AGREEMENT without liability, to pay only for the value of the work actually performed, or to deduct from this AGREEMENT price or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.

ARTICLE XVII. PROHIBITION OF EXPENDING CITY, STATE, OR FEDERAL FUNDS FOR LOBBYING A. The CONSULTANT certifies, to the best of his or her knowledge and belief, that:

1. No State, Federal, or CITY appropriated funds have been paid or will be paid, by or on behalf of the CONSULTANT, to any person for influencing or attempting to influence an officer or employee of any local, State, or Federal agency, a Member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding or making of this AGREEMENT, or with the extension, continuation, renewal, amendment, or modification of this AGREEMENT.

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in

ATTACHMENT 2
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MADERA, APPROVING FUNDING AMENDMENT APPROPRIATING $75,000 TO THE CITY OF MADERA FISCAL YEAR (FY) 2021/22 CAPITAL PROJECTS BUDGET

FOR THE ENGINEERING DESIGN SERVICES FOR SHOULDER PAVING ON RAYMOND ROAD - CITY PROJECT R-37, STOREY ROAD - CITY PROJECT R60, AND SIDEWALKS ON SCHNOOR AVENUE - CITY PROJECT R-58, AND WASHINGTON SCHOOL AREA - CITY PROJECT R-93.

WHEREAS, Project comprising of engineering design services for shoulder paving on Raymond Road – City Project R-37, Storey Road – City Project R-60, and sidewalks on Schnoor Avenue – City Project R-58, and Washington School Area – City Project R-93, hereinafter called “the Project”, is included in the proposed FY 2021/22 including carryover from FY 2020/21 for Capital Projects; and
WHEREAS, Additional funds are necessary for the engineering phase of the Project in the FY 21/22 Capital Projects Budget; and
WHEREAS, Funds are available in the unprogrammed fund balance of the Local Transportation Fund (LTF) account No. 42005330 and Measure T Environmental Enhancement account No. 41570000.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF MADERA hereby resolves, finds, determines and orders as follows:

1. The above recitals are true and correct.

2. The FY 2021/22 Capital Projects Budget is hereby amended in accordance with Exhibit A, Budget Amendment Breakdown which is incorporated by reference herein.

3. The City Clerk is authorized and directed to forward a copy of the resolution to the Director of Finance who is authorized to take such action as necessary to implement the terms of this resolution.

4. This resolution is effective immediately
/ / /

ATTACHMENT 3

LOCATION MAPS

REPORT TO CITY COUNCIL
Approved by:
_________________________________
Daniel Foss, Public Works Director
_________________________________
Arnoldo Rodriguez, City Manager
SUBJECT:

Contract Award for Groundwater Monitoring Well Installation services for the Wastewater Treatment Plant
RECOMMENDATION:

Adopt a Resolution approving the contract award for Groundwater Monitoring Well Installation services, WWTP Project No. 20-01, in the amount of $234,000 to Maggiora Brothers Drilling, Inc.

SUMMARY:

City staff wishes to enter a contract for groundwater monitoring well drilling services at the Wastewater Treatment Plant in compliance with State issued Waste Discharge requirements.

Maggiora Brothers Drilling Inc. (Maggiora) submitted the lowest bid of $234,000, approximately 28 percent below the Engineer’s Cost Estimate of $323,000. Maggiora meets all the requirements necessary to be awarded the construction contract. The project funding is included in the current 2021/22 Capital Projects Budget under WWTP 20-01.

DISCUSSION:

The City’s Wastewater Treatment Plant (WWTP) operates under Waste Discharge Requirement No. 95-046 which was last updated in 1995. To incorporate new WWTP upgrades that have occurred in 2006 and 2019, staff is submitting a new Report of Waste Discharge (RoWD) to the Regional Board to renew the waste discharge permit. Completion of the Permit renewal will allow the plant to increase volume waste flow rates from the current 7.0 MGD limit to 10.1 MGD.

In 2018, the City contracted with Stantec Consulting Services, Inc. (Stantec) for Professional Engineering Consulting Services for the Update of the Waste Discharge Permit for the WWTP.

Stantec’s scope of work included preparation of a Report of Waste Discharge report (RoWD), preparation of engineering documents, and to help the City obtain a new WWTP discharge Council Meeting of: April 6, 2022
Agenda Number: D-4
permit.

On August 19, 2019, during discussions with the City concerning Permit upgrades, the Regional Board requested additional information including:
 Hydrogeologic groundwater information
 A groundwater anti-degradation analysis
 An updated water balance, and
 A treatment capacity assessment
Stantec developed a proposed work plan which provided the requested information and the workplan was subsequently approved by the Board on December 20, 2019. Implementation of this work plan requires an assortment of work delivery items including the need to install 5 new groundwater monitoring wells since 7 of the 8 existing monitoring wells are dry due to drought conditions. The lack of groundwater information results in insufficient data to provide an appropriate anti-degradation evaluation. As such, new monitoring wells are required before any of the follow-up evaluation can take place. Once the wells are installed and groundwater sampling data analyzed, the City can respond to the Regional Boards request for information.

The Regional Board requested a description of the hydrogeologic conditions (groundwater information), an evaluation on impacts to groundwater (anti- degradation analysis), an updated water balance, and a WWTP treatment capacity assessment to receive a discharge permit for flow rates over 7 MGD.

On September 18, 2019, the City responded to the Regional Board’s request with a proposed work plan schedule to meet the requested information (the Regional Board approved the Workplan on December 20, 2019). On December 16, 2020, Amendment No. 1 to the Agreement with Stantec was approved by City Council. The Scope of Work included all additional services identified above and required Stantec to seek bids from licensed Well Drilling firms on behalf of the City for the installation of the new groundwater monitoring wells at the WWTP.

Plans and specifications were distributed by Stantec and were made available to contractors and sub-contractors. On December 16, 2021, two bids were received and are listed in Table 1.

Table 1: Bid Overview
Bidder Bid
Maggiora Brothers Drilling Inc. $234,000
Nor-Cal Pump & Drilling, Inc. $353,014
Engineer’s Opinion of Cost $323,000
All bids were checked for accuracy via our consultant for the job, Stantec. The validity of contracting licenses and bid security were also checked. It has been determined that Maggiora Brothers Drilling, Inc. has submitted the lowest responsive and responsible bid that meets all the contract requirements.

FINANCIAL IMPACT:

There is no fiscal impact to the City’s General Fund. The cost of Groundwater Monitoring Well Installation Services in the amount of $323,000 is budgeted under CIP Project WWTP 20-01 in the Sewer Enterprise Fund.

CONSISTENCY WITH THE VISION MADERA 2025 PLAN:

This project is consistent with the Vision Madera 2025 Plan. Abundant Natural Resources - provide adequate sewage capacity to accommodate community growth and improve the quality of the water discharged from the facility.

ALTERNATIVES:

Although the population growth in the last decade averaged only 0.8 percent in the City, planned future developments could result in a higher growth rate if some speculative projects move forward. Consequently, the WWTP is projected to potentially treat wastewater flow rates higher than 7-MGD within 20-years. Should Council not approve this amendment, the City’s Wastewater Treatment Facilities would be limited the current 7.0 million gallons per day treatment and disposal capacity.

ATTACHMENTS:

1. Resolution

2. Exhibit A – Contractor Services Agreement
RESOLUTION NO. 22-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MADERA,

CALIFORNIA, APPROVING THE AWARD OF THE CONTRACT FOR THE

CONSTRUCTION OF GROUNDWATER MONITORING WELLS AT THE
WASTEWATER TREATMENT PLANT PROJECT NO. 20-01 TO MAGGIORA BROTHERS DRILLING INC., IN THE AMOUNT OF $234,000 AND

AUTHORIZING CONSTRUCTION CONTINGENCIES RELATING TO THE

CONTRACT
WHEREAS the Construction of Groundwater Monitoring Wells at the WWTP– Project WWTP 20-01 (the Project) was advertised for bid proposals through the City’s consultant Stantec; and
WHEREAS bids for the Project were duly submitted and reviewed by personnel in the Engineering Division; and
WHEREAS funding for the Project is included in the Capital Improvement Projects Budget under WWTP 20-01 for Fiscal Year 2021/22.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MADERA HEREBY finds, orders, and resolves as follows:

1. The above recitals are true and correct.

2. The City Council (Council) has reviewed and considered all the information presented including the report to Council from the Engineering Department.

3. The City finds that Maggiora Brothers Drilling Inc. was the lowest responsible and responsive bidder for the Project.

4. The contract for the Project in the amount of $234,000 to Maggiora Brothers Drilling Inc., a copy of which is attached hereto as Exhibit 1 and referred to for particulars is approved.

5. This Resolution is effective immediately upon adoption. * * * * * * * * * * * *

EXHIBIT A

CONSTRUCTION SERVICES AGREEMENT
THIS AGREEMENT, made this 6th day of April , 2022, between the City of Madera,hereinafter called “OWNER”, and Maggiora Brothers Well Drilling Inc., a corporation, hereinafter called “CONTRACTOR”.

WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned:

1. The CONTRACTOR shall commence and complete all WORK specified in Sections 2.1 through 2.4 required for the “Groundwater Monitoring Well Installation Workplan, WDRs Order No. 91-192 by Stantec Consulting Service Inc., Project WWTP20-01”

2. The CONTRACTOR shall furnish all of the material, supplies, tools, equipment, labor, and other services necessary for the construction and completion of the WORK described herein.

3. The CONTRACTOR shall commence the WORK required by the CONTRACT DOCUMENTS within 10 calendar days after the date of the NOTICE TO PROCEED and will complete the same within the time period set forth in the CONTRACT DOCUMENTS. The CONTRACTOR shall submit a Payment Bond and Performance Bond in the amount of $234,000.00, each and Insurance Certificates as specified in the CONTRACT DOCUMENTS prior to commencing any WORK.

4. The CONTRACTOR agrees to perform all of the WORK described in the DOCUMENTS for the unit and lump sum prices set forth in the Bid Schedule.

5. The term “CONTRACT DOCUMENTS” means and includes the following:
(A) Advertisement for Bids
(B) Groundwater Monitoring Well Installation Workplan, WDRs Order No. 91-192 by Stantec Consulting Service Inc., Project WWTP 20-01” (C) Bid Proposal - Maggiora Brothers Drilling Inc. Bid, dated December 16, 2021 included as Attachment A.
(D) Bid Bond
(E) Agreement
(F) Payment Bond
(G) Performance Bond
(H) Insurance Requirements – included as Attachment B.
(I) General Conditions
(J) Special Conditions
(K) City of Madera Standard Specifications and Drawings - "Groundwater Monitoring Well Installation Workplan, WDRs Order No. 91-192 by Stantec Consulting Service Inc., Project WWTP 20-01” dated March 23, 2021 included as Attachment C.

Addenda Nos. , dated
Addenda Nos. , dated
Addenda Nos. , dated

6. In the event the CONTRACTOR does not complete the WORK within the time limit specified herein or within such further time as authorized, the CONTRACTOR shall pay to the OWNER liquidated damages in the amount of One Hundred Dollars($100.00) per day for each and every calendar day delay in finishing the WORK beyond the completion date so specified.

7. The OWNER will pay to the CONTRACTOR in the manner and at such times as set forth in the General Conditions such amounts as required by the CONTRACT DOCUMENTS. For any moneys earned by the CONTRACTOR and withheld by the OWNER to ensure the performance of the Contract, the CONTRACTOR may, at his request and expense, substitute securities equivalent to the amount withheld in the form and manner and subject to the conditions provided in Division 2, Part 5, Section 22300 of the Public Contract Code of the State of California.

8. In the event of a dispute between the OWNER and the CONTRACTOR as to an interpretation of any of the specifications or as to the quality or sufficiency of material or workmanship, the decision of the OWNER shall for the time being prevail and the CONTRACTOR, without delaying the job, shall proceed as directed by theOWNER without prejudice to a final determination by negotiation, arbitration by mutual consent or litigation, and should the CONTRACTOR be finally determined to be either wholly or partially correct, the OWNER shall reimburse him for any added costs he may have incurred by reason of work done or material supplied beyond the terms of the contract as a result of complying with the OWNER’S directions as aforesaid. In the event the CONTRACTOR shall neglect to prosecute the work properly or fail to perform any provisions of the CONTRACT, the OWNER, after three days written notice to the CONTRACTOR, may, without prejudice to any other remedy it may have, make good such deficiencies and may deduct the cost thereof from the payment then or thereafter due to the CONTRACTOR, subject to final settlement between the parties as in this paragraph herein above provided. 8A. CLAIMS RESOLUTION PROCESS FOR DISPUTES.

It is the intent of this Contract that disputes regarding the Contract be resolved promptly and fairly between the Contractor and the Owner. However, it is recognized that some disputes will require detailed investigation and review by one or both parties before a determination and resolution can be reached. For the protection of the rights of both the Contractor and the Owner, the following provisions are provided for the resolution of disputes which cannot be resolved by the Owner and the Contractor within three business days after either party gives verbal notice of dispute or potential dispute to the other's attention and prior to the commencement of such work.

The following provisions are intended by Contractor and Owner to comply with Public Contract Code Sections 9204 and 20104 et. seq.

A. Claims:

The term “claim” refers to a separate demand by Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(1) A time extension, including, without limitation, forrelief from damages or penalties for delay assessed by Owner under this Contract.
(2) Payment by the Owner of money or damages arising from work done by, or on behalf of, the Contractor pursuant to the Contract and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (3) Payment of an amount that is disputed by the Owner.

B. The Claim Must Be Timely and in Writing:

For all claims the claim must be in writing and include the documents necessary to substantiate the claim. A notice of potential claim must be filed within five (5) business days of Contractor’s completion of work that is a potential claim. Notice of an actual claim must be filed on or before the date of final payment.

C. Receipt of Claim by Owner:

Upon receipt of a claim pursuant to this section, the Owner will conduct a reasonable review of the claim and, within a period not to exceed 45 days from the date of receipt, will provide the Contractor with a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, Owner and Contractor may, by mutual agreement, extend the time period provided in thissection.

The Contractor shall furnish reasonable documentation to support the claim. If additional information is thereafter required, it shall be requested and provided upon mutual agreement by the Owner and the Contractor. The District's written response to the claim, as further documented, shall be submitted to the claimant within 30 days after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation.

D. City Council Approval:

If the Owner needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the Owner shall have up to three days following the next duly publicly noticed regular meeting of the City Council after the 45-day period or extension expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

E. Payment of Claim:

Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the Owner issues its written statement. If the Owner fails to issue a written statement, paragraph F below shall apply.

F. Meet and Confer:

If the Contractor disputes the Owner’s written response, or if the Owner fails to respond to a claim issued pursuant to this section within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer forsettlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the Owner shall schedule a meet and confer conference within 30 days for settlement of the dispute.

Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the Owner shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the Owner issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the Owner and the Contractor sharing the associated costs equally. The Owner and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.

Under this Contract, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assiststhe parties in dispute resolution through negotiation or by issuance of an evaluation.

Any mediation utilized shall conform to the timeframes in this section.

Unless otherwise agreed to by the Owner and the Contractor in writing, the mediation conducted pursuant to thissection shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

If mediation as set forth above does not resolve the parties’ dispute, the parties will proceed to arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program.

G. Filing a Government Code Written Claim Notice:

Following the meet and confer conference, if the claim or any portion remains in dispute, the Contractor may file a claim under the Torts Claims Act as provided in Chapter 1 (commencing with Section 900) and Chapter 2 commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code Section 900.

H. Owner’s Failure to Respond to Claim:

Failure by the Owner to respond to a claim from Contractor within the time periods described above or to otherwise meet the time requirements set forth above shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the Owner’sfailure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the Contractor.

I. Interest:

Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.

J. Subcontractor Claims:

If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against Owner because privity of contract does not exist, the Contractor may present to the Owner a claim on behalf of a subcontractor or lower tier subcontractor. For purposes of this paragraph, the term “subcontractor’ means any type of subcontractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with the Contractor or is a lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the Owner shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the Owner and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

K. Filing of Action on Unresolved Claims:

The parties shall follow the procedures set forth in Public Contracts Code Section 20104.4 if an action is filed to resolve claims under the foregoing provisions. Any action shall be filed in Madera County.

9. Attention is directed to Section 1735 of the Labor Code, which reads asfollows:
“No discrimination shall be made in the employment of persons upon public works because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical conditions, marital status, or sex of such persons except as provided in Section 12940 of the Government Code, and every contractor for public works violating this section is subject to all the penalties imposed for by violation of this chapter”.

10. In accordance with the provisions of Article 5, Chapter l, Part 7, Division 2 (commencing with Section 1860) and Chapter 4, Part l, Division 4 (commencing with Section 3700) of the Labor Code of the State of California, the CONTRACTOR isrequired to secure the payment of compensation to his employees and shall for that purpose obtain and keep in effect adequate Worker’s Compensation Insurance.

The undersigned CONTRACTOR is aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against Liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the WORK of this Agreement.

11. The CONTRACTOR shall comply with Part 7, Chapter l, Article 2, Section 1775 of the Labor Code of the State of California. The CONTRACTOR shall, as a penalty to the OWNER, forfeit fifty dollars ($50.00) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates for such work or craft in which such worker is employed for any public work done under the Contract by him or by any SUBCONTRACTOR under him. The difference between such prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than a prevailing wage rate, shall be paid to each worker by the CONTRACTOR.

12. The CONTRACTOR shall comply with Part 7, Chapter l, Article 2, Section 1776 of the Labor Code of the State of California. The CONTRACTOR shall keep and require that all SUBCONTRACTORS keep accurate payroll records showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice worker or other employee employed by him in connection with public work. Such payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of the CONTRACTOR by the OWNER, its officers, and agents and to the representatives of the Division of Labor Law Enforcement of the State Department of Industrial Relations. In the event of non-compliance with the requirements of Section 1776, the CONTRACTOR shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects the CONTRACTOR must comply. Should non-compliance still be evident after the ten (10) day period, the CONTRACTOR shall, as a penalty to the OWNER forfeit twenty-five dollars ($25.00) for each calendar day, or portion thereof, for each worker until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards orthe Division of Labor Standards Enforcement, these penaltiesshall be withheld from progress payments then due.

13. Attention is directed to the provisions in Sections 1777.5 and 1777.6 of the Labor Code concerning the employment of apprentices by the CONTRACTOR or any SUBCONTRACTOR under him. It is the CONTRACTOR’S responsibility to ensure compliance by both itself and all SUBCONTRACTORS.

Section 1777.5 provides, in part, as follows:

The CONTRACTOR or SUBCONTRACTOR, if he is covered by this section, upon the issuance of the approval certificate, or if he has been previously approved in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeyman stipulated in the apprenticeship standards. Upon proper showing by the CONTRACTOR that he employs apprentices in the craft or trade in the State on all of his/her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by a journeyman, or in the land surveyor classification, one apprentice for each five journeyman, the Division of Apprenticeship Standards may grant a certification exempting the CONTRACTOR from the one (1) to five (5) hourly ratio as set forth in this section. This section shall not apply to contracts of general CONTRACTORS or to contracts of specialty contractors not bidding for work through a general or prime CONTRACTOR, when the contracts of general CONTRACTORS, or those specialty CONTRACTORS involve lessthan thirty thousand dollars($30,000). Any work performed by a journeyman in excess of eight hours per day orforty (40) hours per week shall not be used to calculate the hourly ratio required by this section.

Apprenticeable craft or trade, as used in this section, shall mean a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the Apprenticeship Council. The joint apprenticeship committee shall have the discretion to grant a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting a CONTRACTOR from the 1 to 5 ratio set forth in this section when it finds that any one of the following conditions is met:
(a) In the event unemployment for the previous three-month period in such area exceeds an average of 15 percent, or
(b) In the event the number of apprentices in training in such area exceeds a ratio of 1 to 5, or (c) If there is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either (1) on a statewide basis, or (2) on a local basis, or
(d) If assignment of an apprentice to any work performed under a public works contract would create a condition which should jeopardize his life or the life, safety, or property of fellow employees, or the public at large or if the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.

When such exemptions are granted to an organization which represents CONTRACTORS in a specific trade from the 1 to 5 ratio on a local or statewide basis the member CONTRACTORS will not be required to submit individual applications for approval to local joint apprenticeship committees, provided they are already covered by the local apprenticeship standards.

The CONTRACTOR is required to make contributions to funds established for the administration of apprenticeship programs if he employs registered apprentices or journeymen in apprenticeable trade on such contracts and if other CONTRACTORS on the public work site are making such contributions. The CONTRACTOR, and any SUBCONTRACTOR under him, shall comply with the requirements of Sections 1777.5 and 1777.6 of the Labor Code in the employment of apprentices.

Information relative to number of apprentices, identifications, wages, hours of employment and standards of working conditions shall be obtained from the Division of Apprenticeship Standards. Consult the white pages of yourtelephone directory under California, State of, Industrial Relations, Apprenticeship Standards, for the telephone number and address of the nearest office. Willful failure by the CONTRACTOR to comply with the provisions of Sections 1777.5 will subject the CONTRACTOR to the penalties set forth in Section 1777.7 of the Labor Code.

14. Pursuant to California Labor Code Section 1813, eight hours in any one calendar day and forty (40) hours in any calendar week shall be the maximum hours any worker is required or permitted to work, except in cases of extraordinary emergency caused by fires, flood, or danger to life and property.

The CONTRACTOR doing the work, or his duly authorized agent, shall file with OWNER a report, verified by his oath, setting forth the nature of the said emergency, which report shall contain the name of said worker and the hours worked by him on the said day, and the CONTRACTOR and each SUBCONTRACTOR shall also keep an accurate record showing the names and actual hours worked of all workers employed by him in connection with the work contemplated by this Agreement, which record shall be open at all reasonable hours to the inspection of the OWNER, or its officer or agents and to the Chief of all Division of Labor Statistics and Law Enforcement of the Department of Industrial Relations, his deputies or agents; and it is hereby further agreed that said CONTRACTOR shall forfeit as a penalty to the OWNER the sum of Twenty-Five Dollars ($25.00) for each laborer, workman or any SUBCONTRACTOR under him for each calendar day during which such laborer, workman or mechanic is required or permitted to labor more than eight (8) hours in violation of thisstipulation.

Overtime and shift work may be established as a regular procedure by the CONTRACTOR with reasonable notice and written permission of the OWNER. No work other than overtime and shift work established as a regular procedure shall be performed between the hours of 6:00 P.M. and 7:00 A.M. nor on Saturdays, Sundays or holidays except such work as is necessary for the proper care and protection of the work already performed or in case of an emergency.

CONTRACTOR agrees to pay the costs of overtime inspection except those occurring as a result of overtime and shift work established as a regular procedure. Overtime inspection shall include inspection required during holidays, Saturdays, Sundays, and weekdays. Costs of overtime inspection will cover engineering, inspection, general supervision, and overhead expenses which are directly chargeable to the overtime work. CONTRACTOR agrees that OWNER shall deduct such charges from payments due the CONTRACTOR.

15. The CONTRACTOR shall comply with Division 2, Chapter 4, Part 1 of the Public Contract Code relating to subletting and subcontracting, specifically included but not limited to Sections 4104, 4106, and 4110, which by this reference are incorporated into this Agreement as though fully set forth herein.

16. The CONTRACTOR and the OWNER agree that changes in this Agreement or in the work to be done under this Agreement shall become effective only when written in the form of a supplemental agreement or change order and approved and signed by the OWNER and the CONTRACTOR. It is specifically agreed that the OWNER shall have the right to request any alterations, deviations, reductions or additions to the contract or the plans and specifications or any of them, and the amount of the cost thereof shall be added to or deducted from the amount of the contract price aforesaid by fair and reasonable valuations thereof.

This contract shall be held to be completed when the work is finished in accordance with the original plans and specifications as amended by such changes. No such change or modification shall release or exonerate any surety upon any guaranty or bond given in connection with this contract.

17. Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees, and volunteers from and against all liability, loss, damage, expense, and cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's negligence, recklessness, or willful misconduct in the performance of work hereunder, or its failure to comply with any of its obligations contained in this AGREEMENT, except such loss or damage caused by the sole active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation, reasonable legal counsel fees, expert fees, and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees, and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless, or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

Contractor obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of City under any provision of this agreement, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City isshown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.

Contractor agreesto obtain or cause to be obtained executed defense and indemnity agreements with provisions identical to those set forth in this Section from each and every Subcontractor and Subconsultant, of every Tier. In the event the Contractor fails to do so, Contractor agrees to be fully responsible to provide such defense and indemnification according to the terms of this Section.

18. Contractor must comply with the insurance requirements as described in Attachment B of this Contract.

19. Amendments. Any changes to this Agreement requested by either City or Maggiora Brothers Drilling Inc. may only be effected if mutually agreed upon in writing by duly authorized representatives of the parties hereto. This Agreement shall not be modified or amended or any rights of a party to it waived except by such writing.

20. Termination.

A. This Agreement may be terminated at any time by either party upon fifteen (15) calendar days written notice. In the event the Agreement is terminated by either party, Maggiora Brothers Drilling Inc. shall be compensated for services performed to the date of termination based upon the compensation rates and subject to the maximum amounts payable agreed to together with such additional services performed after termination which are authorized in writing by the City representative to wind up the work performed to date of termination.

B. City may immediately suspend or terminate this Agreement in whole or in part by written notice where, if in the determination of City, there is:

1. An illegal use of funds by Maggiora Brothers Drilling Inc.;

2. A failure by Maggiora Brothers Drilling Inc. to comply with any material term of this Agreement;

3. A substantially incorrect or incomplete report submitted by to City.

In no event shall any payment by City or acceptance by Maggiora Brothers Drilling Inc. constitute a waiver by such party of any breach of this Agreement or any default which may then exist on the part of either party. Neither shall such payment impair or prejudice any remedy available to either party with respect to such breach or default. City shall have the right to demand of Maggiora Brothers Drilling Inc. the repayment to City of any funds disbursed to Maggiora Brothers Drilling Inc. under this Agreement which, as determined by the appropriate court or arbitrator, were not expended in accordance with the terms of this Agreement.

Notice of termination shall be mailed to the City:

City of Madera
Public Works Department
1030 S. Gateway Drive
Madera, CA 93637
Notice of Termination shall be mailed to the Contractor: Maggiora Brothers Drilling Inc.

All notices and communications from Maggiora Brothers Drilling Inc. shall be to City's designated Project Manager or Principal-In-Charge. Verbal communications shall be confirmed in writing. All written notices shall be provided and addressed as soon as possible, but not later than thirty (30) days after termination.

21. Compliance with Laws. City shall comply with all Federal, State, and local laws, ordinances, regulations, and provisions applicable in the performance of City’sservices.

Wherever reference is made in this Agreement to standards or codes in accordance with which work is to be performed or tested, the edition or revision of the standards or codes current on the effective date of this Agreement shall apply, unless otherwise expressly stated.

22. Attorneys’ Fees/Venue. In the event that any action is brought to enforce the terms of this Agreement, the party found by the court to be in default agrees to pay reasonable attorneys’ fees to the successful party in an amount to be fixed by the Court. The venue for any claim being brought for breach of this Agreement shall be in Madera County or as appropriate in the U.S. District Court for the Eastern District of California, located in the City of Madera.

23. Governing Law. The laws of the State of California shall govern the rights and obligations of the parties under the Agreement, including the interpretation of the Agreement. If any part of the Agreement is adjudged to be invalid or unenforceable, such invalidity shall not affect the full force and effect of the remainder of the Agreement.

24. City’s Authority. Each individual executing or attesting to this Agreement on behalf of the City hereby covenants and represents: (i) that he or she is duly authorized to execute or attest and deliver this Agreement on behalf of such corporation in accordance with a duly adopted resolution of the corporation’s articles of incorporation or charter and bylaws; (ii) that this Agreement is binding upon such corporation; and (iii) that Contractor is a duly organized and legally existing municipal corporation in good standing in the State of California.

25. Contractor’s Legal Authority. Each individual executing or attesting this Agreement on behalf of Maggiora Brothers Drilling Inc. hereby covenants and represents: (i) that he or she is duly authorized to execute or attest and deliver this Agreement on behalf of such corporation in accordance with such corporation’s articles of incorporation or charter and by-laws; (ii)that this Agreement is binding upon such corporation; and (iii) that Maggiora Brothers Drilling Inc. is a duly organized and legally existing corporation in good standing in the State of California.

26. Remediesfor Default. Failure by a party to perform any term, condition or covenant required of the party under this Agreement shall constitute a “default” of the offending party under this Agreement. In the event that a default remains uncured for more than ten (10) days following receipt of written notice of default from the other party, a "breach" shall be deemed to have occurred. Any failure or delay by a party in asserting any of itsrights and remedies asto any defaultshall not operate as a waiver of any default or of any rights or remedies associated with a default.

27. Independent Contractor. In performance of the work, duties, and obligations assumed by the Contractor under this Agreement, it is mutually understood and agreed that the City, including any and all of City’s officers, agents and employees will, at all times, be acting and performing as an independent contractor, and shall act in an independent capacity and not as an officer, agent, servant, employee, joint venturer, partner, or associate of City. Furthermore, City shall have no right to control or supervise or direct the manner or method by which City shall perform its work and functions. The City shall comply with all applicable provisions of law and the rules and regulations, if any, of governmental authorities having jurisdiction over the subject matter hereof.

Because of its status as an independent contractor, City shall have absolutely no right to employment rights and benefits available to City employees. City shall be solely liable and responsible for providing to, or on behalf of, its employees all legally required employee benefits. In addition, City shall be solely responsible and hold City harmless from all matters relating to payment of City’s employees, including compliance with Social Security, withholding and all other regulations governing such matters. It is acknowledged that during the term of this Agreement, City may be providing services to others unrelated to City or to this Agreement.
28 Sole Agreement. This instrument constitutes the sole and only Agreement between City and Maggiora Brothers Drilling Inc. in connection to the Project and correctly sets forth the obligations of the City and Maggiora Brothers Drilling Inc. to each other as of its date. Any Agreements or representations in connection with the Project, not expressly set forth in this instrument are null and void.

27. Assignment-Neither the Maggiora Brothers Drilling Inc. nor City will assign its interest in this Agreement without the written consent of the other.

28. Caltrans is required by 23 code of Federal Regulations (CFR), part 200, Section 200.9 (b)(7) to conduct reviews ofsub-recipients (Local Agencies) of federal-aid to ensure compliance with Title VI of the Civil Rights Act of 1964 and the relates statues (Title VI) through the requirements under the Federal Highway Administration (FHWA), the U.S. Department of Transportation (USDOT), and the U.S.

Department of Justice (USDOJ) regulations and guidance materials related to the implementation of Title VI.

The scope of the processreviews conducted by Caltrans focuses on the Local Agency’s adherence to the FHWA’s Title VI Program (Race, Color and National Origin) and the related statues protecting additional classes as required under
• Federal-Aid Highway Act of 1973 (Sex)
• The Age Discrimination Act of 1975 (Age), and
• The Americans with Disabilities Act of 1990 (ADA)(Disability) and Section 504 of the Rehabilitation Act of 1973 (Disability).
29 Binding Agreement. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns.

IN WITNESS WHEREOF the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in THREE copies, each of which shall be deemed an original on the date first above written.

CITY OF MADERA
__________________________________
_________________________________
MAGGIORA BROTHERS WELL DRILLING INC.
____________________________________
___________________________________
DIR Registration Number
NOTE: This Notary Acknowledgment on the following page is required for verification of Contractor’s signature.

By:

Santos Garcia, Mayor
Date:__________________________
APPROVED AS TO FORM:

Hilda Cantú Montoy, City Attorney
ATTEST:

Alicia Gonzales, City Clerk
BY:

Michael Maggiora, Corporate Secretary
Date:

Federal Tax I.D. No.

Contractor License Number
Acknowledgment
State of California
County of )
On ,2022 before me,
(insert name and title of officer)
Personally appeared , whoproved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Attachment A
Bid Proposal
MAGGIORA BROTHERS DRILLING INC.

PHONE: 831 724-1338 595 Airport Blvd.

FAX: 831 724-3228

DRILLING SPECIFICATION, UNIT COSTS,
AND ESTIMATED PRICE Watsonville, CA 95076
License # C-57-249957
D aet : 16 -D ec-21 p roposa I#
Customer: Stantec Contact Tom Butler
Mail address: Phone No. 925-699-8012
City, ST, Zip Mobile No.

Owner of property/Add: .i Fax No.

TYPE OF WELL Exploratory borehole
Site Location: ADD & CITY Madera County Assessors parcel:

The following are the complete specifications and costs of the drilling project. The final invoice will reflect the actual quantities used to complete the drilling project. "Owner'' indicates that the Customer will furnish the item at no expense to the Contractor or pay a reasonable extra amount if unable to do so.

Item Diam. Max. Min. Est. Unit Price Per Estimated
# Drilling & Casing: (in.) (ft.) (ft.) (ft.) Item Price 1 Mobilization/demobilization (one charoe per drillinQ riQ) $27,500.00 ea. $ 27,500.00 2 Drilling permit: Madera - 5 EACH County $ 800.00 ea. $ 4,000.00 3 Exploratory drilling:

Type: !MUD 10 I 1300 1000 1100 $ 45.00 ft. $ 49,500.00
4 Hardrock hammer drill: I 0 $ - ft. $ -
5 Electric resistivity log: 5 $ 3,000.00 ea. $ 15,000.00 6 Conductor casing: 0 !Inch 0 $ - ft. $ -
7 Borehole reaming: I 0 $ - ft. $ - 8 Well casinQ installed:

Type: IPVC Casing 4" I 1040 840 950 1$ 16.00 I ft. $ 15,200.00 9 Type: I PVC Screen 4" I 260 160 160 1$ 22.00 I ft. $ 3,520.00 10 Gravel pack installed:

Type: !Sand Max Tons 15 850 $ 25.00 ft. $ 21,250.00
11 Sanitary seal: Max Yards 250 $ 60.00 ft. $ 15,000.00 12 Water Fluid & Drill Cuttings Hauling Cost: 0 Loads $ 3,500.00 ea. $ - 13 Water truck rental: 0 Hours $ - hr. $ - 14 Well development: Type: I Airlift 40 Hours $ 500.00 hr. $ 20,000.00 15 Test Pump Install & Removal: . ' $ - ea . $ -
16 Test Pump Operation: EB Hours $ 250.00 hr. $ - 17 Well pad with steel stove pipe Each $ 2,500.00 ea. $ 12,500.00 18 Well disinfection (per treatment): $ - ea. $ - 19 Well Destructions E9 Ea. $ 6,000.Q0 If. $ 36,000.00 20 Stand-by time: Hours $ 450.00 hr. $ - 21 Hourly drilling rate (penetration rate < 8 ft./hr. for 2 hours) $ 500.00 hr. $ - 22 Mud shaker Rental 5 Each $ 500.00 ea. $ 2,500.00 23 Bentonite mud for drilling: 50 Bags $ 18.00 bag $ 900.00 24 Traffic Control 3 Each $ 1,800.00 ea. $ 5,400.00
25 Performance and Payment bonds 1 Each $ 5,730.00 ea. $ 5,730.00 Drill cuttings and fluids to remain on site and shall become owner's responsibility.

Drilling will not start until county has issued a permit for the project.

Price subject to county requirements and site conditions.

PUMP QUOTE Total ESTIMATED cash price per well $ 234,000.00 can be given AFTER Less down payment due prior to start of TEST HOLE : $ - the well is test pumped Less down payment due prior to start of Drill : $ - in order to q1,1ote the correct ESTIMATED balance due on completion: $ 234,000.00 pump for your needs. Minimum charQe due after move-in : $ 1,000.00 '
I HAVE READ AND AGREE TO THESE TERMS AND INITIAL AT RIGHT TO ACCEPT ___ INITIALS Attachment B
Insurance Requirements

INSURANCE REQUIREMENTS FOR CONTRACTORS
Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide, and continuously maintain at its own expense during the term of the Agreement, and shall require any and all Subcontractors and Subconsultants of every Tier to obtain and maintain, policies of insurance of the type and amounts described below and in form satisfactory to the City.

Minimum Scope and Limits of Insurance

1. Contractor shall maintain limits no less than: $2,000,000 General Liability (including operations, products and completed operations) per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury and property damage, including without limitation, blanket contractual liability. Coverage shall be at least as broad as Insurance Services Office (ISO) Commercial General Liability coverage form CG 00 01. General liability policies shall be endorsed using ISO forms CG 20 10 and CG 20 37 to provide that the City and its officers, officials, employees and agents shall be additional insureds under such policies.

2. $2,000,000 Automobile Liability combined single limit per accident for bodily injury or property damage at least as broad as ISO Form CA 00 01 for all activities of Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles. Automobile Liability policies shall be endorsed to provide that the City and its officers, officials, employees and agents shall be additional insureds under such policies.

3. Worker’s Compensation as required by the State of California and $1,000,000 Employer’s Liability per accident for bodily injury or disease. Contractor shall submit to the City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, it’s officers, agents, employees, and volunteers.

Maintenance of Coverage
Contractor shall procure and maintain, for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, his agents, representatives, employees, subcontractors or subconsultants as specified in this Agreement.

Proof of Insurance
Contractor shall provide to the City certificates of insurance and endorsements, as required, 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 the City prior to commencement of performance. Current evidence of insurance shall be kept on file with the City at all times during the term of this Agreement. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.

Acceptable Insurers
All insurance policies shall be issued by an insurance company currently authorized by the Insurance commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and a Financial Size Category Class VII (or larger), in accordance with the latest edition of Best’s Key Rating Guide.

Waiver of Subrogation
All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor, or others providing insurance evidence in compliance with these specifications, to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City and shall require similar written express waivers and insurance clauses from each of its subconsultants or subcontractors.

Enforcement of Contract Provisions (non estoppel)
Contractor acknowledges and agrees that any actual or alleged failure on the part of the Agency to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City, nor does it waive any rights hereunder.

Specifications 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 Contractor maintains higher limits than the minimums required above, the entity shall be entitled to coverage at the higher limits maintained by Contractor.

Notice of Cancellation
Contractor agrees to oblige its insurance agent or broker and insurers to provide to the City with thirty (30) calendar days notice of cancellation (except for nonpayment for which ten (10) calendar days notice is required) or nonrenewal of coverage for each required coverage.

Self-insured Retentions
Any self-insured retentions must be declared to and approved by the City. The 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 the City’s Risk Manager.

Timely Notice of Claims
Contractor shall give the City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional Insurance
Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgement may be necessary for its proper protection and prosecution of the Work.

Attachment C
Standard Specifications -
Groundwater Monitoring Well Installation Workplan
March 23, 2021
Mr. Daniel Benas 184030099
Central Valley Regional Water Quality Control Board
1685 E Street
Fresno, CA 93706-2020
RE: City of Madera – Groundwater Monitoring Well Installation Workplan, WDRs Order No. 91-192
Mr. Benas:

On behalf of the City of Madera, we are submitting the attached Groundwater Monitoring Well Installation Workplan pursuant to the scheduled outlined in the City’s February 16, 2021 letter titled City of Madera WWTF Report of Waste Discharge, WDR 95-046.

Please contact me if you have any questions regarding the content of this report.

Sincerely,

STANTEC
Thomas W. Butler II, PG, CHG, CEG
Senior Hydrogeologist/Geochemist
Attachment – Groundwater Monitoring Well Installation Workplan cc: Daniel Foss, City of Madera Interim Public Works Director (e-copy) Humberto Molina, City of Madera Operations Manager (e-copy) Beth Cohen, Stantec Consulting Services Inc. (e-copy)
Sincerely,

STANTEC
Thomas W. Butler II , PG, CHG, CEG
Senior Hydrogeologist/Geochemist
Attachment - Groundwater Monitoring Well Installation We () Stantec
Groundwater Monitoring Well Installation Workplan
March 23, 2021
Prepared for:

City of Madera
Prepared by:

Stantec Consulting Service Inc.
~ Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Table of Contents

1.0 INTRODUCTION..........................................................................................................1.1

1.1 OVERVIEW..................................................................................................................1.1

1.2 SITE HYDROGEOLOGY AND SOILS..........................................................................1.1

1.2.1 Geology and Soil.........................................................................................1.1

1.2.2 Groundwater Flow Direction........................................................................1.2

2.0 GROUNDWATER MONITORING WELL INSTALLATION...........................................2.1

2.1 PROPOSED MONITORING WELL LOCATION AND RATIONALE..............................2.1

2.2 MONITORING WELL SPECIFICATIONS.....................................................................2.1

2.3 WELL DEVELOPMENT................................................................................................2.5

2.4 WELL DISSINFECTION ...............................................................................................2.5

2.5 SURVEYING ................................................................................................................2.5

2.6 SOIL SAMPLING..........................................................................................................2.5

2.7 WELL WATER MONITORING......................................................................................2.6

2.7.1 Water Level Measurements.........................................................................2.6

2.7.2 Purging .......................................................................................................2.6

2.7.3 Sample Collection .......................................................................................2.6

2.7.4 Quality Assurance/Quality Control...............................................................2.6

2.7.5 Decontamination .........................................................................................2.7

2.7.6 Field Forms and Sampling ..........................................................................2.7

2.7.7 New Well Proposed Monitoring ...................................................................2.8

3.0 HEALTH AND SAFTY PLAN.......................................................................................3.1

3.1.1 Personal Protective Equipment ...................................................................3.1

3.1.2 Emergency Procedures/Contacts................................................................3.1

3.1.3 Regulatory Permits......................................................................................3.1

4.0 PROFFESIONAL SEALS AND CERTIFICATIONS .....................................................4.1

LIST OF FIGURES
Figure 1 Groundwater Elevation Contour Map (Prepared by BSK Associates).........................1.2 Figure 2 Typical Monitoring Well Details .................................................................................2.3 Figure 3 Monitoring Well Typical Surface Completion Details ..................................................2.4 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Introduction

1.0 INTRODUCTION

1.1 OVERVIEW
The City of Madera (City) owns and operates the Madera Wastewater Treatment Plant (WWTP) located at 13048 Road 21 ½, in Madera, California. The WWTP is regulated by the Central Valley Regional Water Quality Control Board (Regional Board) through Waste Discharge Requirements (WDRs) Order No. 95-046. The plant treats an existing flow rate of 5 Mgal/d, a permitted capacity 7 Mgal/d, and has a design capacity of 10.1 Mgal/d, to accommodate future growth. The sanitary sewer collection system delivers wastewater to the plant, where it is comingled with septage receiving station effluent, processed by two mechanical screens, and pumped to grit chambers and primary clarifiers. Primary effluent is pumped to oxidation ditches and secondary clarifiers, before being discharged into evaporation/percolation disposal ponds. Scum and waste sludge are sent to anaerobic digesters and centrifuges, which produce Class B biosolids that are hauled off site for disposal.

The WWTP is required by its WDRs to monitor groundwater and has historically had eight monitoring wells at and around the WWTP (MW-1 through MW-8). Of these wells, only monitoring well MW-1 is reported to be in good condition and consistently produces water. Monitoring well MW-2 can no longer be located as it was destroyed by landowner during preparation of the field for the planting of almond trees. Monitoring wells MW-3, MW-4, and MW-5A are generally either dry or do not contain sufficient water to allow sampling. Monitoring MW-6, MW-7, and MW-8 typically pump dry and are slow to recharge. Most of the wells sanitary features are failing and allow storm water runoff and sediment to enter them during wet periods. It is therefore the intent of this workplan to reconstruct the monitoring network to address its lack of available water as well as eliminate monitoring wells on properties not controlled by the WWTP. The revised monitoring network will be used to collect comprehensive water quality and elevation data to support the sites antidegradation analysis.

1.2 SITE HYDROGEOLOGY AND SOILS

1.2.1 Geology and Soil
The WWTP is located within the Great Valley geomorphic province of California San Joaquin Groundwater Basin, Madera Subbasin. According to the California Department of Water Resources Bulletin 118, the San Joaquin Valley is bounded to the west by the Coast Ranges, on the south by the San Emigdio and Tehachapi Mountains, on the east by the Sierra Nevada, and on the north by the Sacramento-San Joaquin Delta and Sacramento Valley. The San Joaquin Valley is a structural trough that is around 200 miles long and 70 miles wide, filled with up to 32,000 feet of marine and continental sediments deposited during periodic inundation by the Pacific Ocean and by erosion by the surrounding mountains. The Madera Subbasin is bounded on the south by the San Joaquin River, on the west by the eastern boundary of the Columbia Canal Service area, on the north by the Chowilla Subbasin, and on the east by crystalline bedrock of the Sierra Nevada foothills. Hydrogeologic units in the Madera Subbasin consist of unconsolidated deposits of Pleistocene and Holocene age. Review of geophysical logs for

1.1 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Introduction
wells near the WWTP suggests that groundwater measured in the monitoring wells may be in sediment that is locally unsaturated and/or perched and occurring at depths around 140 to 160 feet below ground surface. Review of past groundwater monitoring reports for the facility suggest that groundwater in this zone is not spatially consistent and likely occurs where relatively thin zones of lower permeability are locally present, restricting the downward movement of recharged water. By contrast, the static depth to groundwater measured at nearby production wells suggest that the static water table is around 190 feet, which corresponds to the depth of saturated sand deposits encountered during the drilling of the facility’s production well.

1.2.2 Groundwater Flow Direction
Review of historical groundwater elevations from site monitoring wells have generally indicated that local groundwater flow at the WWTP is generally radial from the disposal ponds. Figure 1 illustrates “typical” groundwater flow vectors based on measuring water in the sites existing groundwater monitoring wells.

As previously stated, these data may be misleading due to the sporadic presence of water in many of the sites monitoring wells and the likely perched nature of water when it is available. Furthermore, historic monitoring reports commonly reference surface water entering site monitoring wells due to poor sanitary features at the wellhead.

Figure 1 Groundwater Elevation Contour Map (Prepared by BSK Associates)

1.2 MW-9: On Road 20
halfway between Ave
14 and 13 1/2
6N SN 4N
-
--- - --.__ --- 14 ---- ftMW : ---..:_ ---- ~ ------
- -- --- :---.:..
---- - ------------------ - ;,e: ---- ---- ---- ---- WW --- -- --- n ~ ft ----
·s.i.., #.«)t/t«J'
~
--"
-+- APPROXIMATE MONITORING WELL LOCATION
.,.J"'~ INFERRED LI NES OF EQUAL GROl.JIJOWATER ELEVATION RUCRENCE !MA.CE: Googlt [orth Pro, 2019
() Stantec
3N 2N 1
90 Av1nua 13
Grou,dwater Elevatlons Measured on: May 1. 2020
ApProxil'Tli:IIII Groundwater Gradient: 0.022 ft SISE

GROUNDWATER CONTOUR MAP
2nd Quarter Groundwater Monitoring Event
City of Madera Wastewater Treatment Plant
13048 Road 21 l
Madera, California
FIGURE 1
flP-PC'i9:9 Jf
OR. IIY __J!JW_ 91EET NO. -1,_
~ 13!~ Cf" _J_ SMms

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation

2.0 GROUNDWATER MONITORING WELL INSTALLATION

2.1 PROPOSED MONITORING WELL LOCATION AND RATIONALE
The purpose of groundwater monitoring is to provide a measure of compliance with regards to the State Antidegradation Policy. Currently, the existing monitoring network is generally not sufficient to consistently assess groundwater elevations and water quality. Accordingly, a revised groundwater monitoring network is therefore proposed, designed to assess static groundwater elevations and quality more consistently. Accordingly, four of the WWTP wells are proposed to be deepened and into the first saturated aquifer. These wells include MW-4, MW-5A, MW-7, and MW-8 (Figure 1). One additional well is proposed to assess ambient water quality (MW-9) and is located halfway between Avenue 13 ½ and 14 on Road 20. Monitoring well MW-1 will remain, while monitoring wells MW-3 and MW-6 will be destroyed by pressure grouting, or as otherwise directed by Madera County Environmental Health. Note monitoring well MW-2 cannot be located and is assumed to have been destroyed by farming operations (on land not under the control of the City). Following the installation of the proposed monitoring wells, detailed water chemistry, including MRP required constituents and general mineral chemistry will assessed for a period of one year.

2.2 MONITORING WELL SPECIFICATIONS
The monitoring wells will be drilled to the target depth using either sonic drilling method, or alternative approved method, with a minimum nominal borehole diameter of 10 inches. For the purpose of site characterization, we propose drilling each borehole to the first saturate water bearing formation anticipated to be a depth of up to approximately 220 ft. bgs. The depth may however be reduced based on site-specific conditions encountered during drilling. Soil samples will be collected from the borings every five (5) feet and logged in accordance with the Unified Soil Classification System. To accommodate overdraft in the region, each well will be designed with a 30-foot screen. The location of the screen section will be based on site specific lithology and field conditions and all attempts will be made to have 5 feet of the screen installed above the top of the water bearing strata. Additionally, the monitoring wells will be designed and installed according to the California Well Standards and permit conditions of the Madera County Department of Environmental Resources with the following details:

Minimum Borehole Diameter – Nominal 10-inch.

Borehole Depth – Estimated to be up to approximately 220 feet below ground surface. Final borehole depths will be based on the lithology encountered during drilling and may be subsequently modified.

Well Depth – Estimated to be up to approximately 220 feet bgs. Well depths are intended to allow for normal fluctuations of the groundwater table. Final well depths will be based on the lithology encountered during drilling.

Casing Nominal Diameter – 4-inches.
() Stantec 2.1

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation
Casing Materials – ASTM F480 Schedule 40 flush threaded PVC blank casing. Top of casing shall be approximately two feet above ground surface or slightly below grade in traffic rated Christy boxes.

Well Screen – Factory slotted ASTM F480 Schedule 40 PVC well screens. Approximately 30 linear feet of flush threaded well screen will be placed in the boreholes.

Slot Aperture Width – The well screens will be installed with a 0.020-inch aperture width. The gradation is based on the initial selection of the filter pack and is sized to retain, at a minimum, 90% of the filter pack.

Filter Pack – The filter pack proposed is a 2/12 type (12 x 20 mesh) Monterey Silica Sand, or equivalent.

The proposed monitoring wells are intended for sensitive water quality determinations; therefore, all filter pack materials shall be handled to avoid contact with contaminants as discussed in Section 11 of the California Well Standards. The filter pack will extend five feet above the top of the screened interval of the wells.

Transition Seal – Approximately one to two feet of bentonite chips or pellets will be placed on top of the filter pack providing a transitional seal from the filter pack to the sanitary surface seal.

Surface Seal – The sanitary surface seal shall consist of a minimum of 50 feet of neat cement, cement grout, or high solids bentonite grout and extend from ground surface the top of the bentonite transition seal.

Protective Surface Casing –Six linear feet of nominal 8-inch diameter ¼-inch wall steel casing, or 8 x 8- inch square tubing, equipped with a lockable, removable cap will provide the protective surface casing for above grade completions. This casing will be cemented in place from approximately two feet above ground surface to a depth of four feet. The surface completion shall consist of a 4’ x 4’ x 4” thick or 3.5’- diameter x 4” thick concrete slab, surrounding the well head. Should a well be installed in a public road or right-of-way, or otherwise require an at-grade completion, it will be completed with a traffic rated Christy Box, cemented in place with a concrete apron designed to shed water away from the well.

Well Cap – 4-inch diameter expandable, lockable pressure plug.

The locations of the new groundwater monitoring wells are illustrated in Figure 1. Additionally, at a minimum, equipment decontamination will consist of a hot water pressure wash of the drilling equipment immediately prior to the start of drilling each well. Figures 2 and 3 depict the typical monitoring well completion details anticipated for the site.

2.2 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation
Figure 2 Typical Monitoring Well Details

2.3 2.3
10”
8”
4”
4”
50’ min. 5
30 OPTIONAL BOLLARD
(TYPICAL OF 3)

THREADED BOTTOM
PLUG
() Stantec

LOCKABLE EXPANDING PRESSURE PLUG

STEEL CASING W/

LOCKABLE CAP

FILL WITH GROUT OR SAND

LAND SURFACE
i NOMINAL BOREHOLE

STEEL CASING
y- CEMENT GROUT

SURFACE SEAL

BLANK PVC
CASING
~- 1' OF GRANULAR

BENTON I TE
~- WELL SCREEN

0.020 IN SLOTTED

PVC CASING
SAND FILTER PACK (#7,fa)

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation
Figure 3 Monitoring Well Typical Surface Completion Details

2.4 2.4
8” x 6’-0”
4’ x 4’ x 4” THICK OR 3.5’Ø x 4” THICK

CONC SLAB
(OPTIONAL)

PAD LOCK
(TYP OF 2)

STEEL CAP W/ LOCKING
TABS SEE DEtAIL BELOW

WEEP HOLE
' STEEL PIPE
6x6 WELDED WIRE MESH CENTER

IN SLAB

ABOVE GROUND COMPLETION
1/8" STEEL CAP
1/4" LARGER THAN

STEEL PIPE
Q
HALF OF 4 " STD STEEL
PIPE 2 1/2" LONG WELD
TO CAP (TYP OF 2)
1/4" THICK TABS, SIZE AND

HOLE TO SUIT PAD LOCK, WELD

TO CAP AND PIPE AS REQD
(4 REQD)

CAP DETAIL
() Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation

2.3 WELL DEVELOPMENT
The drilling contractor will develop the wells using a combination of methods. Where practicable and where formations stability permits, well development by gently swabbing the well with a surge block will be initiated before the installation of the bentonite transitional seal or neat cement/cement grout sanitary seal to ensure settling of the filter pack prior to sealing the annulus. Once the seal has been installed and sets up for no less than 12 hours, further development by vigorously swabbing the well with a surge block and manual bailing will continue until the concentration of suspended solids in the water bailed from the well is sufficiently low to permit pumping with a portable submersible pump or by air lifting. Accumulated fill shall be removed from the bottom of the well screen.

Development will continue until the discharge water runs clear to the unaided eye and/or field measured turbidity is 5 n.t.u., or less. During the pumping phase of well development, the pump/isolation tool will be moved up and down the entire length of well screen, maximizing the removal of accumulated fines.

Water generated from the well during development will be discharged directly to land.

2.4 WELL DISSINFECTION
It has been our experience that the effectiveness of well disinfection procedures vary. As such, the proposed monitoring well will not be disinfected unless monitoring results indicate persistently elevated densities of coliform organisms over several consecutive quarters of groundwater monitoring. Should coliform fail to decline over time, well disinfection may be conducted in accordance with ANSI/AWWA Standard C654-03, Disinfection of Wells (2003).

2.5 SURVEYING
Once installed, the new and existing monitoring wells will be surveyed by a qualified California licensed land surveyor. These wells will be located with regards to both the California State Plane and Geographic Coordinate Systems, relative the North American Datum, 1983 (NAD83). The elevation of the north quadrant of each PVC well casing will be surveyed to within 1/100th of a foot accuracy, relative to the National Geodetic Vertical Datum 1929 (NAVD 29) and reported as feet above mean sea level, consistent with other monitored wells at the site.

Care shall be exercised during surveying to avoid introduction of foreign material into the well. Rod or receiver bottoms shall be wiped with a chlorine solution prior to setting on well casing for each well.

2.6 SOIL SAMPLING
No soil samples will be collected at the site other than those used to classify the geologic materials penetrated by the boreholes.

Spoils from drilling will be dispersed to land at the site.

2.5 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation
f

2.7 WELL WATER MONITORING

2.7.1 Water Level Measurements
Depth to water measurement will be completed and recorded for all wells prior to initiating purging and sampling at any groundwater monitoring location. Additionally, the well compression cap should be initially removed from all wells allowing a minimum of 15 to 30 minutes to elapse so that groundwater levels stabilize prior to measurement. It should be noted that more or less time may be required for groundwater depths to stabilize, based on site specific hydrogeologic factors. Water-level measurements will then be taken with an electronic tape (sounder) and the same sounder will be used at all monitoring locations, assuring reproducibility of the results. Water levels will be recorded to the nearest 0.01 foot and will be referenced to the surveyed datum (north quadrant of the PVC well casing). Depth to groundwater measurements will then be converted to groundwater elevations and used to develop a groundwater elevation contour map, in order to identify possible groundwater flow direction and gradient.

2.7.2 Purging
A minimum of three well volumes will be purged from the well prior to sampling. Purging will be accomplished by pumping with a portable pump or by manually bailing. Field water quality parameters (temperature, pH, and electrical conductivity) will be collected at the beginning of purging and after each well volume has been removed. This information shall be recorded on a well -specific field data form.

Well Volume (WV) = water column heightft * πr 2 * 7.48 gal/ft3, rft = radius of well in feet Minimum Purge Volume = 3*WV;
Purging will continue until at least three well volumes have been removed, and the monitored field parameters pH, temperature, and conductivity vary by less than 10% of the previous well volume recording. Data will be recorded on well-specific data sheets.

2.7.3 Sample Collection
Groundwater samples will be collected from the new wells as part of the next regularly scheduled groundwater monitoring event and include general mineral chemistry and the stable isotopes of water.

2.7.4 Quality Assurance/Quality Control
All data collection will be in accordance with proper sampling and field measurement procedures as outlined below. The QA/QC program components for the field include:
• Decontamination of field sampling equipment;
• Calibration of all field measuring equipment;
• Sample logging and chain of custody procedures;
• Sample labeling; and,

2.6 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation
• Ensuring that all samples are obtained, maintained, and shipped according to QA/QC procedures.

All equipment used to obtain field measurements (pH meter, specific conductance meter, etc.) will be calibrated according to manufacturer’s directions. Calibration will be performed prior to the beginning of the sampling event.

2.7.5 Decontamination
Non-dedicated sampling equipment will be cleaned by hand and on polyethylene sheeting or in contained bins. Cleaning will include:
• If necessary, removing adhering soil particles by scrubbing with a hand brush in solution of potable water and a non-phosphate detergent (Alconox);
• Rinsing with free-flowing potable, deionized, or distilled water; and, • Rinsing with chlorine solution prepared with potable, deionized, or distilled water.

Dedicated hand bailers will be rinsed with potable water. If this does not result in an acceptable cleansing of the bailer (e.g. soil particles adhere to the bailer), decontamination will follow that of non-dedicated equipment.

2.7.6 Field Forms and Sampling
All field forms for activities conducted during the field program will be maintained. Information concerning sample collection procedures, sample identification, and any other pertinent information or observations will be recorded on the field forms. Copies of the field forms will become part of the project file for further reference.

Should samples be collected, a sample identification system will be used to identify each sample location and sample type collected from the facility. This will provide a tracking system to allow for retrieval of information and to ensure that each sample is uniquely numbered. The sample identification will consist of the following minimum information:
• Site identification;
• Date and time sampled; and,
• Sample location.

All samples collected for analytical testing will be delivered to an approved analytical laboratory within 48 hours of collection, or within method holding time, whichever is shortest. During sample shipment, samples will be kept on ice or synthetic substitute (e.g. “blue ice”) in an insulated container at a maximum temperature of 4°C.

A chain of custody record, which documents possession of samples from time of collection to laboratory analysis, will be maintained. Each person who has possession of the samples will complete applicable

2.7 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Groundwater Monitoring Well Installation
sections of the form when samples are received or relinquished and when sample possession is transferred.

The chain of custody form will be sent in the shipping container along with the samples. The sample collector will have the receiving personnel of the laboratory sign the chain of custody form to complete documentation of sample possession from time of collection to delivery to the laboratory. The laboratory will provide a photocopy of this form for the sample collector’s records.

2.7.7 New Well Proposed Monitoring
The newly constructed monitoring wells will be monitored for both MRP required constituents as well as general mineral chemistry and the stable isotopes of water for a period of four (4) quarters, with the purpose of establishing a geochemical signature for water quality at these new locations. Following the initial four quarters of monitoring the wells will revert to the MRP required monitoring program.

2.8 2.8
() Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Health and Safty Plan

3.0 HEALTH AND SAFTY PLAN

3.1.1 Personal Protective Equipment
Risk of exposure to hazardous chemical or biological agents is minimal. Although the exposure risk is small, the work crew shall avoid skin contact with the soils and splash with fluid from the boring or completed monitoring well. The practice of good personal hygiene by crew is warranted and will further reduce the exposure risk. Affected areas of the body shall be washed with clean soapy water followed by a clean water rinse.

Level D personal protection equipment comprising of a standard work uniform (coveralls, hard hat, steeltoed boots, safety glasses, hearing protection, etc.) shall be in practice during work at the site.

3.1.2 Emergency Procedures/Contacts
The telephone numbers of the appropriate entities to be contacted in case of emergency are as follows:

Madera Police Department: Emergency 911; Non-emergency (559) 675-4200 Fire Department: Emergency 911; Non-emergency (559) 661-5499 The nearest trauma center or emergency medical facility is:

Madera Community Hospital
1250 E Almond Avenue
Madera, CA 93637
Phone: (559) 675-5555

3.1.3 Regulatory Permits
Prior to drilling, permits will be obtained for well construction from the Madera County Environmental Health Department located at:

Merced County Environmental Health Department
200 W 4th St.

Madera, CA 93637
Phone: (559) 675-7823

3.1 () Stantec

GROUNDWATER MONITORING WELL INSTALLATION WORKPLAN
Proffesional Seals and Certifications

4.0 PROFFESIONAL SEALS AND CERTIFICATIONS
I certify under penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment.

Thomas W. Butler, PG, CHG, CEG
Senior Hydrogeologist/Geochemist

4.1 (} Stantec

Madera City CouncilApril 6, 2022

Madera City Council
April 6, 2022