Orange Cove City Council
March 24, 2026

ORANGE COVE CITY COUNCIL

REGULAR MEETING MINUTES
March 11, 2026_______________________________________________________________________ The Regular Meeting of the Orange Cove City Council was called to order by Mayor Guerra-Silva at 6:30 PM on Wednesday, March 11, 2026, at the City of Orange Cove Senior Center at 699 6 th Street, Orange Cove, California.

1. ROLL CALL
COUNCIL MEMBERS’ PRESENT
Del Bosque, Ortiz, and Mayor Pro-Tem Garcia.

ABSENT
Mayor Diana Guerra-Silva and Council Member Rodriguez.

INVOCATION
Council Member Ortiz.

PLEDGE OF ALLEGIANCE
Council Member Del Bosque.

2. CONFIRMATION OF AGENDA
Yes, remove agenda item 7. Presentation by SoCal Gas.

3. PUBLIC COMMENT
Three members of the public addressed the council.

One community member thanked the Police Department for its support of the Blossom Trail Bicycle Fundraiser.

It was a great event. The other two community members spoke on the hydrogen gas blending experiment and provided details. One member expressed opposition to the experiment and attended the trip to Southern California. The other community member clarified that she did not attend the trip to Southern California.

CONSENT CALENDAR
Action: Motion was made by Council Member Del Bosque to approve the consent calendar and seconded by Council Member Ortiz. The motion carried with the following vote:

AYES: 3 COUNCIL MEMBERS: Del Bosque, Ortiz, Garcia
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBER: None
ABSENT: 2 COUNCIL MEMBERS: Guerra-Silva and Rodriguez

4. Approval of Minutes of Regular Meeting of Orange Cove City Council on February 25th, 2026.

5. Consideration/Approval of Rejection of Claim - Ednita Sandoval.

6. Consideration/Approval of February 2026 Warrant Register.

PRESENTATION:

7. Mid Valley Disposal- Staff from Mid Valley Disposal provided the city council with the 2025 annual update.

A PowerPoint presentation was presented with all the details.

8. SoCal Gas did not attend the city council meeting.

ORANGE COVE CITY COUNCIL REGULAR MEETING MINUTES-March 11, 2026

REGULAR BUSINESS
Administration-City Manager Escobar

9. Subject: Hispanic Heritage Celebration – Parade on May 1 Recommendation: Staff recommends approval of the Hispanic Heritage Celebration parade on Friday, May 1.

City Manager Escobar informed the council that in the past, this event was known as the Cinco de Mayo Event Celebration. But because this year we will not be hosting a Heritage Day Event in September, we are changing the event name, and he provided detailed information.

Action: Motion was made by Council Member Ortiz to approve the Hispanic Heritage Celebration parade on Friday, May 1, and seconded by Council Member Del Bosque. The motion carried with the following vote:

AYES: 3 COUNCIL MEMBERS: Ortiz Del Bosque, Garcia
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBER: None
ABSENT: 2 COUNCIL MEMBERS: Guerra-Silva and Rodriguez

10. Subject: Approval to Replace Wastewater Treatment Meters Recommendation: Staff recommends Council approve the purchase and installation of new wastewater treatment meters for $55,466, funded by the City Wastewater Operations Budget.

City Manager Escobar informed the council that these upgrades or replacements must be completed, and he provided detailed information.

Action: Motion was made by Council Member Ortiz to approve the purchase and installation of new wastewater treatment meters for $55,466, funded by the City Wastewater Operations Budget. and seconded by Council Member Del Bosque. The motion carried with the following vote:

AYES: 3 COUNCIL MEMBERS: Ortiz Del Bosque, Garcia
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBER: None
ABSENT: 2 COUNCIL MEMBERS: Guerra-Silva and Rodriguez

11. Subject: Approval to Purchase Hach TU5300 Turbidity Meter Recommendation: Staff recommends Council approve the purchase of a Hach TU5300 Turbidity Meter for $26,774, funded by the Water Treatment Operational Budget, to address a Department of Drinking Water violation and complete the approved work plan.

City Manager Escobar informed the council that these upgrades or replacements must be completed, and he provided detailed information.

Action: Motion was made by Council Member Del Bosque to approve the purchase of a Hach TU5300 Turbidity Meter for $26,774, funded by the Water Treatment Operational Budget, to address a Department of Drinking Water violation and complete the approved work plan, and seconded by Council Member Ortiz.

The motion carried with the following vote:

AYES: 3 COUNCIL MEMBERS: Del Bosque, Ortiz, Garcia
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBER: None
ABSENT: 2 COUNCIL MEMBERS: Guerra-Silva and Rodriguez
ORANGE COVE CITY COUNCIL REGULAR MEETING MINUTES-March 11, 2026

12. CITY MANAGER’S REPORT
• Trash Day update-new site and it was a success.
• OC Lions Bicycle Run Fundraiser – Great job in representing Orange Cove. • Reported on the recent trip to Southern CA to the hydrogen plant. • The Ribbon Cutting Opening Ceremony for the Orange Cove Truck Driving Academy is announced next week.

13. CITY ATTORNEYS REPORT
Nothing to report.

14. CITY COUNCIL COMMUNICATIONS
Council Member Ortiz
• Announced and invited the community to the Free Easter Event on Saturday, March 28th,from 10:00 AM to 1:00 PM.

Council Member Del Bosque
• Thanked the Events Committee for the community events. • Thanked the Police and Fire Department for the fantastic job that they did. • Recognized the OC Lions for their hard work at the Blossom Trail Bicycle Fundraiser.
• Discussed the Grand Opening of the new Orange Cove Truck Driving Academy. It is a great opportunity for the residents.

Mayor Pro Tem
• Announced and invited the community to the Orange Cove High School Avid Program/Lucky Run/Walk this Saturday, March 14th.

15. ADJOURNMENT There being no further business, the meeting was adjourned at 7:13 PM.

Respectfully submitted,
_________________________ __________________________
Cynthia Cisneros, City Clerk Gilbert Garcia, Mayor Pro Tem For the Special Meeting of March 24, 2026

CITY OF ORANGE COVE

REPORT TO THE CITY COUNCIL
To: Orange Cove City Council
From: Cynthia Cisneros, City Clerk
Subject: Approval of Scholarship Sponsorship to Orange Cove High School.

Attachments: Correspondence Letter from Orange Cove High School and Scholarship Sponsorship Form

RECOMMENDATION:

Staff recommends that the city council approve the scholarship sponsorship request from Orange Cove High School. Scholarship contributions are available in tiered increments of $100, $250, $500, and $1,000. Donors may purchase multiple units at any contribution level. The scholarship sponsorship will reflect in the Fiscal Year 2025-2026.

BACKGROUND:

Schools offer scholarship awards night to recognize students for academic excellence, leadership, and extracurricular achievements while celebrating their future success.

The Orange Cove High School Scholarship Awards Night is scheduled for Thursday, May 14, 2026.

FISCAL IMPACT:

None. The City maintains a separate Donations Fund designated specifically for the receipt and distribution of donation requests. As such, approval of this item will not affect the General Fund.” CONFLICT OF INTEREST:

None.

Prepared by: Cynthia Cisneros Approved by: Samuel A. Escobar, City Manager REVIEW: Samuel A. Escobar Finance: _______ City Attorney: ______ TYPE OF ITEM: COUNCIL ACTION: • APPROVED • DENIED • NO ACTION X Consent
Info Item
_ Action Item
Department Report
Redevelopment Agency
Public Hearing
Matter Initiated by a Council
Member
Other
Continued to: __________

For the Special Meeting of March 24, 2026

CITY OF ORANGE COVE

REPORT TO THE CITY COUNCIL
To: Orange Cove City Council
From: Samuel A. Escobar
Subject: Approval of Water and Wastewater Rate Study.

Attachments: Water and Wastewater Enterprise Financial Analysis and Rate Study dated March 2, 2026.

Proposed Notice of Public Hearing (rate increase notice) to be sent to all customers and property owners

RECOMMENDATION: Staff recommends that the city council accept the water and wastewater (sewer) rate study completed by IGS and further recommends approval to issue a Proposition 218-compliant rate increase notice to all water and wastewater customers, and property owners in the City of Orange Cove.

BACKGROUND:

The recommended rates by Tuckfield and Associates from its 2021 rate study were implemented, then rescinded because of issues with water meters not reporting data correctly for billing purposes. Rates from 2020 have been in place since then. Until the work of this rate study, problems with meters have continued, but will be corrected prior to the implementation of the new rates. The water and sewer systems also have significant deferred maintenance of equipment at the water and sewer treatment plants. Both the water and sewer enterprise funds have negative annual cash flow and negative fund balances. Dan Bergmann of IGS began work on the rate study last October and has now completed the attached report.

DISCUSSION:

Water and sewer rates must be increased substantially to 1) recover the negative fund balances, 2) cover the negative cash flows, and 3) provide for deferred capital repair of both systems. If all the needed increases were implemented in the first year, water revenue would increase 47 percent, and sewer would increase 60 percent, which would be a burden on Orange Cove customers. Instead, the increases are staged over two years to soften the impact on customers.

Staff will work to secure grant funding for capital repair work such that the second-year increase can be reduced. The result of staging the increases will be either that additional cash is borrowed from other funds or that capital repair projects are further delayed. Public Works is working diligently to ensure that all water meters are working properly prior to July 1, 2026, rate implementation date, should City Council approve the rate increase. Staff will also closely monitor rate implementation to ensure revenue is received as planned, to avoid the problems that happened following the previous rate study.

FISCAL IMPACT:

The first- and second-year revenue increases for water are $406,000 and $508,000, respectively. The first- and second-year revenue increases for sewer are $357,000 and $464,000, respectively.

ALTERNANTIVES:

If rates are not increased, the projected loss for the water enterprise in FY26/27 is $678,000, and the projected loss for the wastewater enterprise is $722,000. These assume the planned capital repairs will proceed during that year.

CONFLICT OF INTEREST:

None.

Prepared by: Cynthia Cisneros Approved by: Samuel A. Escobar, City Manager REVIEW: Samuel A. Escobar Finance: _______ City Attorney: ______ TYPE OF ITEM: COUNCIL ACTION: • APPROVED • DENIED • NO ACTION Consent
Info Item
X_ Action Item
Department Report
Redevelopment Agency
Public Hearing
Matter Initiated by a Council
Member
Other
Continued to: __________
15 Shasta Lane, Walnut Creek, CA 94597 Cell: 925-899-2578 Email: [email protected] Water and Wastewater Enterprise
Financial Analysis and Rate Study
for
City of Orange Cove
March 2, 2026
Dan Bergmann, P.E.

Principal
Water and Wastewater Enterprise Financial Analysis and Rate Study for
City of Orange Cove
I. Background and Summary ...........................................................................................1 II. Purpose........................................................................................................................2 III. Approach to Setting Rates............................................................................................3 Water Rate Study ......................................................................................................................4 IV. Water Revenue, Expense, and Fund Balance ..............................................................4 V. Water Capital Repair Projects Over the Next Five Years ..............................................6 VI. Existing Water Rates ....................................................................................................6 VII. Water Volumes by Customer Group .............................................................................7 VIII. Water Cost-of-Service Analysis ....................................................................................8 IX. Water Rate Setting .......................................................................................................9 X. Untreated Water Sales ...............................................................................................11 XI. Water Production vs Billed Water ...............................................................................12 XII. Water Rate Comparisons ...........................................................................................13 XIII. Water Conclusion .......................................................................................................13 Wastewater Rate Study ..........................................................................................................14 XIV. Wastewater Revenue, Expense, and Fund Balance ...................................................14 XV. Wastewater Repair Projects Over the Next Five Years...............................................16 XVI. Existing Wastewater Rates.........................................................................................16 XVII. Wastewater Volumes and Revenue by Customer Group............................................17 XVIII. Wastewater Cost-of-Service Analysis .........................................................................18 XIX. Wastewater Rate Setting............................................................................................19 XX. Wastewater Comparisons...........................................................................................21 XXI. Wastewater Conclusion..............................................................................................21 ATTACHMENTS.......................................................................................................................22 A. Water Revenue, Expenses, and Fund Balance: 47% Increase First Year.......................23 B. Water Revenue, Expenses, and Fund Balance: 25% Increase First Year.......................24 C. Water Plant Capital Repair Five-Year Plan .....................................................................25 D. Water Cost-of-Service Inputs ..........................................................................................26 E. Water Revenue Requirement Allocation Table................................................................27 F. Water Fixed Monthly Cost Calculations Year 1 ...............................................................28 G. Water Fixed Monthly Cost Calculations Year 2 ...............................................................29 H. Water Rate Setting Detail: Fixed Monthly and Volumetric Rates....................................30 I. Water Rate Table Proposed............................................................................................31 J. Wastewater Revenue, Expenses, and Fund Balance: 60% Increase First Year..............32 K. Wastewater Revenue, Expenses, and Fund Balance: 30% Increase First Year..............33 L. Wastewater Capital Repair Five-Year Plan .....................................................................34 M. Wastewater Cost-of-Service Allocations: Volume and Billing/Customer Services ...........35 N. Wastewater Revenue Requirement Allocation Table: 60% Increase First Year...............36 O. Wastewater Revenue Requirement Allocation Table: 30% Increase First Year...............37 P. Wastewater Rate Setting ................................................................................................38 Q. Wastewater Rate Table ..................................................................................................39 R. Draft Proposition 218 Notice ...........................................................................................40

I. Background and Summary
This rate study report for water and sewer (also ”wastewater”) follows the work of Tuckfield and Associates, which completed a water and sewer rate study report dated May 2021. The result of the Tuckfield study was to recommend gradual rate increases of 5.4 percent per year for water and 2.2 percent per year for sewer over that five-year planning period. The Tuckfield rates were approved by City Council, implemented temporarily, then rescinded because of inadequate revenue being received due to issues with metering. At that point, rates reverted to February 1, 2020, which are still in place. The revenue requirements and rates proposed by Tuckfield did not include the extensive capital repair burden included in this study.

The city has had an ongoing issue collecting meter data from its automated Beacon system. The intent of the system is that transmitters on all meters send data signals through receiving towers strategically positioned around the city that transmit to a processing computer at public works.

The system has not worked fully because of equipment failures and delays in repair. However, as a result of work in this current study, and the importance of correctly operating meters for success in implementation of new rates, the public works staff has been working diligently on repair of the problems with the Beacon system. All meters must be reporting data for the proposed rates to result in the projected revenue levels for both water and sewer.

The existing rate structure is obsolete because it causes revenue received from customers to deviate from the actual cost to serve them, in conflict with the requirements of Proposition 218.

For example, a single-family household’s base water rate includes 10,000 gallons of water, which means if they use less than 10,000 gallons each month, they are paying for it anyway. Singlefamily households also pay a volumetric sewer rate for volumes over 10,000 gallons metered of potable water per month, which means they are paying sewer charges in the summertime for irrigation water than never reaches the sewer. These issues are corrected in the proposed rates.

A significant portion of the rate increase burden for both water and sewer is for capital repair work that has been deferred many years. The overall proposed rate increases, with capital repair included, are potentially staggering for the working-class community of Orange Cove. With input from staff and the city council, the calculated initial increases needed are staged over two years.

The hope is that during the first year of the new rates that staff is able to secure grant funding for some of the capital repair such that the rate increase in the second year can be reduced. Delaying the full increase may mean that projects are deferred in the first year, or that additional cash is borrowed from other funds. This approach to rate setting is efficient because the city will not need to go through another rate study to change rates for the second year. In this study and the Proposition 218 approval process, the rates are set in the second year to cover all capital repair.

Consequently, if rates can be lower in the second year because grant funding is obtained, city council may lower them by a simple vote and resolution, without further noticing to ratepayers.

The following bar chart shows an illustration of the step up in costs for a typlical single-family home over the first two years.

This work also included extensive analysis of existing billing to customers. The result, working with office staff, was discovery of many billing errors and then corrections of often understated charges to customers. It is recommended to closely follow implementation of the new rates to ensure all meters are working and billing is issued as intended in the study. For the proposed rates to work, the projected revenues must be received to cover the various enterprise costs.

Success is critical since both funds have negative cash flows and negative fund balances.

Finally, the work in this study follows cost-of-service (COS) methodology according to AWWA Manual M1, “Principles of Water Rates, Fees and Charge.” This is important for compliance with the requirements of California’s Proposition 218, such that each customer class pays its proportion of the cost to provide services, whether water or wastewater.

II. Purpose
The purpose of this cost-of-service rate study is to evaluate the water and wastewater enterprise fund revenues, expenses, and fund balances in order to reset rates such that revenue is adequate for safe and reliable operation into the future. The approach to setting rates is outlined in this

study. This work complies with the requirements of California’s Proposition 218 when raising water and wastewater rates. In general, this means:
• A rate study is conducted to support the revenue needed for the enterprise fund. • Each customer group pays its proportionate share of costs. • Revenue from rates is used only for the specific fund’s purposes. • Customers are notified in writing of the rate increases, the reasons increases are needed, information about the rate hearing that will be held after 45 days, and that they may protest in writing.
• If more than 50 percent of customers (parcel owners) protest, the increase may not happen.

III. Approach to Setting Rates
This work is conducted in the following sequential steps:

1. Audited financials are reviewed to observe history of revenues, expenses, and changing fund balances.

2. Accounting reports are reviewed to bridge the time frame between the end of the last audit into the current fiscal year. The budget is reviewed for the current fiscal year and the next fiscal year, when available.

3. Operating expense projections are developed for the next five years, referred to as the “planning period.”

4. Billing data is collected and analyzed for all billing cycles, including all customers from the most recent complete fiscal year. Billing data is reconciled to audited financial values and accounting reports to assure good data for rate setting.

5. Billing data is divided into appropriate customer classes to determine revenue collected from each customer class.

6. Cost-of-service modeling is done to assign overall costs among defined customer classes, based on system costs to serve each customer class.

7. A rate model is constructed to achieve projected revenue needed based on the cost-of-service results. The rate model demonstrates that established rates will achieve the revenue needed for each customer class.

8. Reasonableness testing is done for specific customer usage profiles, comparing existing to proposed monthly and annual charges.

Water Rate Study
IV. Water Revenue, Expense, and Fund Balance
Revenues, expenses, and fund balances are shown in the tables in Attachments A and B. The table shows historical audited data for FY20/21 and FY21/22. The values for FY22/23, FY23/24, and FY24/25 are based on unaudited accounting data. FY25/26 is projected based on existing rates and expenses. The expense values for the five-year planning period, FY26/27 through FY30/31 are forecasted based on input from staff and reasonable estimates of inflation.

Personnel costs, in particular, are based on specific projections provided by staff. The following pie chart shows projected expense components for FY26/27.

The bar chart below shows the revenue increase needed, if all the increase occurs in the first year as shown in Attachment A. The total is approximately $760,000.

The existing revenue level for FY25/26 of approximately $1.6 million is lower than it should be because many of the city’s water meters have not been reporting usage properly or were not billed properly. The rate study work also focused extensively on improving the accuracy of billing.

Consequently, some of the initial revenue increase will happen because of billing improvements.

Over the past few years, over 500 water meters have not reported usage, such that customers were billed only the fixed monthly cost. Additionally, bills have not been issued to the high school for the past year for untreated water provided from the city. Beginning in FY26/27, the high school is expected to contribute $49,000 per year for untreated water, as shown in the revenue section of Attachment A.

Based on input from staff and city council, rates (and therefore revenue projections) are stepped up over two years at 25 percent per year, rather than imposing a much larger 47 percent increase in the first year (Attachment B). Implementing the calculated increase over two years softens the impact on ratepayers and provides the opportunity to reduce the increase in the second year if grant funding is obtained for capital repair projects. However, delaying the full increase needed until the second year causes the enterprise to forgo half the benefit of the increase in the first year, cutting deeper into the City’s pooled cash. After the two 25 percent increases, revenue is increased by four percent per year for the third, fourth, and fifth planning year, mainly to keep up with inflation.

Revenue levels over the planning period are determined such that the fund balance moves from its current negative level toward being positive. Two additional years are included beyond the

five years to show the fund balance continuing to move toward being positive, even though not there at the end of five years. The extra years demonstrate the revenue-to-expense balance in the fifth year will continue to yield positive net revenue.

V. Water Capital Repair Projects Over the Next Five Years Public works staff provided capital repair projects and estimated costs for projects that, in their opinion, must be completed during the next five years to ensure safe and reliable operation of the water system. (See the list of specific projects, recommended timing, and projected costs on Attachment C.)
VI. Existing Water Rates
Orange Cove’s existing water rates were approved by Resolution No. 2018-02, on January 10, 2018. Pursuant to the Resolution, those rates were increased each year through February 1, 2020, and are still at that level. Rates for monthly water sales consist of a fixed monthly base charge that is the same for all residential customers regardless of meter size. For multi-family customers, the fixed monthly charge is applied per each living unit. For commercial customers, the fixed monthly charge increases with meter size. The fixed monthly charge for all customers includes 10,000 gallons of water. Above 10,000, the volume rate is applied. The existing base charges and the volume rate are shown in the tables below.

Residential Rates
Base Rate (per month)*
Single-Family $48.53
Multi-Family (per unit) $48.53
* Includes first 10,000 gallons per month
Commercial and Industrial Rates
Meter Size (Inches) Base Rate (per month)*
5/8 x 3/4 $73.66
3/4 x 3/4 $77.69

1.0 $85.76

1.5 $110.99

2.0 $151.35

3.0 $242.15

4.0 $343.05

6.0 $423.77

* Includes first 10,000 gallons per month
Volume Rate for All Customers
Above 10,000 gallons per month $2.21 /TG
There is no senior discount for water service; however, there is an existing senior discount for sewer rates.

VII. Water Volumes by Customer Group
Surface water is supplied to Orange Cove through a long-term contract with the United States Bureau of Reclamation (USBR). The city’s water supply originates in Millerton reservoir and is delivered to Orange Cove via the Kern-Friant Canal, which passes the East side of Orange Cove.

Water is treated to potable standards by the City’s water treatment plant. Untreated water is delivered to the high school and soccer fields for irrigation purposes. The pie chart below shows an approximation of how USBR supplies are allocated. It is an approximation because estimates are used as not all accounts have been metered accurately over the past few years.

VIII. Water Cost-of-Service Analysis
A cost-of-service analysis was done using a simplified AWWA approach, considering the small size of Orange Cove’s water system. The allocation elements considered were:

1. Volume costs allocated as a function of quantity metered, and

2. Customer services and billing costs as a function of customer count.

The City’s customers had not previously been placed in rate classes or customer groups, except for the distinction between residential and commercial/industrial. This study defines the five rate classes shown in the bar chart below, which are Single-Family, Multi-Family (Apartments), Commercial, Schools, and Packing Houses. The purpose of defining customer classes is to group customers with similar usage patterns. The cost-of-service analysis then calculates the cost to serve each class and compares to existing revenue from customers in each defined class.

The overall result is an average cost for treated water of $7.88 per thousand gallons. (In the ratesetting section, this will be divided between monthly fixed costs and volume costs, such that the volume cost will be less than $7.88.) Proposed cost-of-service results are consistent between customer classes as follows.
• The average cost per Thousand Gallons for single-family is slightly higher than the proposed system average cost. It is higher because customer service costs are much higher for Single-family, in proportion to volumes of water sold to single-family. • The average cost for Multi-Family is lower than single-family and lower than the system average cost. This is because Multi-Family has much higher usage per meter, because of Multi-Family meters serving multiple housing units.
• Commercial is also slightly above the average. This is because Commercial is a combination of all remaining customers, including many small-volume commercial accounts.
• The cost for Schools and Packing is below the system average, again because of larger volumes per meter.

The most significant finding from the cost-of-service analysis is that, for the existing revenue contribution by rate class, the values for Schools and Packing are very low. In fact, for Packing, the contribution per thousand gallons is below the existing volume rate of $2.21 per thousand gallons, which, in practical terms, is impossible. The reason is that several meters for the packing houses have not been operational such that revenue was not collected. The modeling compares existing revenue to estimated actual volumes delivered. Consequently, if the comparison had been to volumes billed, the averages for the Schools and Packing would have been much higher.

However, the focus of the analysis is on actual volumes such that the proposed cost allocation represents expected future results.

The results are illustrated in the bar chart. The modeling calculations are shown in Attachments D through H.

IX. Water Rate Setting
The goal of rate setting is to establish a combination of fixed monthly rates and volume rates that reasonably achieve the cost-of-service revenue requirements for each rate class. Further, rather than increasing the rates the full amount needed in the first year, the initial increase is spread over two years to soften the impact on ratepayers, as discussed previously. The proposed rates over the five-year planning period are shown in Attachment I and a draft of the proposed proposition 218 notice in Attachment R.

Under the proposed rate structure, all metered volumes will be billed meaning that no volumes will be included in the monthly fixed charge. This is being done to be consistent with state law1 ,
with USBR contract requirements2
, and to provide more equitable cost allocation to customers previously using less than 10,000 gallon per month, but paying for 10,000 gallons in the base charge.
1 California Water Code, Section 521
2 Orange Cove 2001 contract with USBR, page 23, Section 6(a)

All single-family customers are proposed to pay the same volume rate and same fixed monthly charge (“Customer Fixed Charge”), regardless of meter size. This combination is set such that the average single-family customer pays half its monthly bill at the fixed amount, and the other half at the volume amount. The proposed fixed monthly charge is set lower than the previous fixed monthly charge because it no longer includes 10,000 gallons. As shown in the graph below, this means that in the first year single-family customers using less than 5,000 gallons will pay the same or less than before. (In the second year, the crossover is lower at 3,000 gallons.) Above 5,000 gallons the monthly charge increases with volume to meet the cost allocation requirements for the single-family customer class.

Multi-Family customers will no longer be charged the monthly fixed amount based on the number of living units, but rather based on meter size, the same as commercial customers. Multi-family customers will pay the same volume rate as other commercial customers.

The fixed monthly charges for multi-family and commercial customers based on meter size follow the recommended proportions of the American Water Works Association (AWWA), using the oneinch meter as the reference size. The fixed monthly charge for a one-inch meter was set such that commercial customers will pay an average of half their monthly bills in fixed charges and the other half in volume charges, similar to single-family. The other customer groups, multi-family, schools, and packing houses, will pay a much larger proportion from the volume rate because their usage is much higher than the commerical class that is mostly small businesses. The comparison of existing monthly charges for commercial to proposed charges is shown below.

X. Untreated Water Sales
The city sells untreated water taken directly from the Kern-Friant canal to Orange Cove High School for irrigation use. The water is gravity fed to the high school by a dedicated pipeline. A meter has recently been installed at the high school that is used for measuring volume. The high school operates a booster pump to provide adequate pressure for its irrigation system.

Historically, the sales price to the high school has been low, most recently at $143.43 per acre foot, or $0.44 per thousand gallons. The proposed price based on the cost-of-service calculation shown below is $441.67 per acre-foot, of $1.36 per thousand gallons. This includes the cost of water plus an allocation of city overhead and public works costs. Although the increase is significant compared to the historic price, the proposed price is just 17 percent of the average retail revenue rate for potable water. The inputs to the proposed price are shown in the following table.

XI. Water Production vs Billed Water
Based on information from city staff, many of the city’s water meters have not been reporting data into the Beacon metering system for the past several years, and therefore metered consumption has not entered the billing system. As of the beginning of the rate-study effort in November, public works personnel began repairing both transmitters on meters and the Beacon communication system such that reading information can be obtained. (The city had been able to get by without reading information because the fixed monthly rates had been set to include 10,000 gallons for each customer, so customers were contributing significantly (but not fully) revenue to the water enterprise. The negative impact of meters not working has been most significant with the packing houses and the schools. The chart below shows historically that over 500 meters (mostly singlefamily) were not reporting in. It also shows the improvement starting in January. In order for the transition to full volumetric rates to work, all meters must be reporting in for billing purposes. This must be done by July 1st, the proposed implementation date.

Cost Total System
AF/Yr $/AF $/TG $/TG
Water Cost $33.22 $0.10
Restoration $26.67 $0.08
Friant O&M $15.94 $0.05
Friant Shares $17.79 $0.05
Friant True Up $8.94 $0.03 $0.31
City Overhead $295,000 1,345 $219.33 $0.67
Public Works Wtr 30% $161,100 1,345 $119.78 $0.37 $1.04 $441.67 $1.36 $1.36
Calculated Retail Average: $7.88
Percent of Total Retail Average: 17%
2025 Rate $142.43 $0.44
Proposed Rate for Untreated Water Sales

XII. Water Rate Comparisons
The first-year increase of 25 percent for single-family customers pushed the bill for an average 8,000 gallons to the top of the range of surrounding communities. The second-year increase pushes the monthly cost much higher. The reason for the excess in the second year is the burden of capital repair work that must be completed. The hope is that during the ensuing months following implementation grant money might be obtained to soften the second-year increase.

XIII. Water Conclusion
The work of this study has thoroughly analyzed the financial statements, rates, and revenue of Orange Cove’s water enterprise. The body of this study combined with the various attachments provide the supporting data and calculations confirming the results of the study. The recommended modified rate structure provides an improvement from the previous rate structure, specifically, billing customers on all water metered, and providing adequate funding for operating and capital repair expenses.

Wastewater Rate Study
XIV. Wastewater Revenue, Expense, and Fund Balance
Wastewater enterprise revenues, expenses, and fund balances are shown in Attachments J and K. Like the water enterprise study, the table shows historical audited data for FY20/21 and FY21/22, and unaudited data for FY22/23, FY23/24, and FY24/25 provided from trial balance reports. The values for FY25/26 are based on data to date for this fiscal year and the budget for the year. The expense values for the five-year planning period, FY26/27 through FY30/31 are forecasted based on input from staff and reasonable estimates of inflation. Personnel costs, in particular, are based on specific projections provided by staff. As with water, the wastewater enterprise has both a negative fund balance and negative cash flow. These factors, combined with pressing capital repair projects, result in the need for significant rate increases.

The following pie chart shows projected expense components for FY26/27. The capital projects amount is higher than in the following years because of work needing to be done sooner, in FY26/27, rather than later.

The bar chart below shows the revenue increase needed, if all the increase is implemented in the first year, as shown in Attachment J. Assuming the increase is spread over two years, either additional cash will be borrowed from other funds, or capital repair work will be deferred.

The existing revenue level for FY25/26 of approximately $1.2 million is lower than it should be because sewer charges have been based on metered water volumes, and many water meters have not been reporting usage properly, as explained in the water section.

As with water, rates (and therefore revenue projections) are stepped up over two years at 30 percent per year, rather than the initial increase of 60 percent. Coincidently, the needed wastewater increases are similar to the needed water increases. Implementing the calculated increase over two years softens the impact on ratepayers and provides the opportunity to reduce the increase in the second year if grant funding is obtained for capital repair projects. However, delaying the full increase needed until the second year causes the enterprise to forgo half the benefit of the increase in the first year, cutting deeper into the city’s pooled cash. After the two 30 percent increases, revenue is increased by four percent per year for the third, fourth, and fifth planning year, mainly to keep up with inflation.

Revenue levels over the planning period are determined such that the fund balance moves from its current negative level toward being positive. Two additional years are included beyond the five years to show the fund balance continuing to move toward being positive, even though not there at the end of five years. The extra years demonstrate the revenue-to-expense balance in the fifth year will continue to yield positive net revenue.

XV. Wastewater Repair Projects Over the Next Five Years Public works staff provided capital repair projects and estimated costs for projects that, in their opinion, must be completed during the next five years to ensure safe and reliable operation of the wastewater system. See the list of specific projects, recommended timing, and projected costs on Attachment L.

XVI. Existing Wastewater Rates
Orange Cove’s existing wastewater rates were approved by Resolution No. 2018-02, on January 10, 2018, along with water rates on the same resolution. Pursuant to the Resolution, those rates were increased each year through February 1, 2020, and are still at that level.

Orange Cove’s existing wastewater rates exactly follow the water rates, even billing residential customers based on metered water usage above 10,000 gallons per living unit per month.

Similarly, the schools have paid on metered volume. This is corrected for residential in the proposed rates such that residential customers are not assigned wastewater charges for summer irrigation water. For schools, the proposed charges are based on student count, not metered water. The existing rates do not include industrial charges for increased concentration measured by biological oxygen demand or by total suspended solids. The proposed rates will remain simple, as discharges from the packing houses have not historically been concentrated, and in order to keep monthly billing straightforward for this smaller city.

The existing rate structure includes a senior discount that is assigned to the sewer rate structure.

The senior rate charged for sewer is $23.49, which is a 41 percent discount below the standard residential rate; however, the origin of the discount was that it was for water and sewer both.3

The city had elected to assign the full amount of discount to sewer for ease of billing. To be eligible, a customer must be over 55 years old. Presently 461 customers receive the discount, or about one-third of all single-family customers. The cost to other ratepayers for the discount is $89,000 per year. For the discount to continue, and for the city to be following Proposition 218 requirements, either voters would have to approve the discount, or city council would have to agree to fund the discount from the general fund. Based on city council indication at the January 28th workshop, the discount is being removed as a rate option going forward. 3 Resolution 2006-05, approved March 22, 2006

Residential Rates
Base Rate (per month)*
Single-Family $39.60
Multi-Family (per unit) $39.60
* Includes first 10,000 potable metered gallons per month Commercial and Industrial Rates
Meter Size (Inches) Base Rate (per month)*
5/8 x 3/4 $81.33
3/4 x 3/4 $85.45

1.0 $93.70

1.5 $119.48

2.0 $160.73

3.0 $253.54

4.0 $356.66

6.0 $439.15
* Includes first 10,000 potable metered gallons per month Volume Rate for All Customers
Above 10,000 gallons per month $1.32 /TG
XVII. Wastewater Volumes and Revenue by Customer Group
Wastewater volumes allocations were developed using a combination of metering data and water usage projections, again, necessary because many of the city’s water meters had not been reporting data. The volume model results are shown in the pie chart below, with single-family and apartments generating most of the effluent being delivered to the treatment plant. Revenue follows the volumes shown below, except for schools and packing houses, which were underbilled because of metering issues.

XVIII.Wastewater Cost-of-Service Analysis
The cost-of-service analysis done for wastewater follows the same approach as water. The allocation elements considered are:

1. Volume costs allocated as a function of effluent volumes modeled, and

2. Customer services and billing costs as a function of customer count.

The city’s customers had not previously been placed in rate classes or customer groups, except for the distinction between residential and commercial/industrial. This study defines the five rate classes shown in the bar chart below, which are Single-Family, Multi-Family (Apartments), Commercial, Schools, and Packing Houses. The purpose of defining customer classes is to group customers with similar usage patterns. The cost-of-service analysis then calculates the cost to serve each class and compares to existing revenue from customers in each defined class.

The overall result is an average cost for treatment of $10.54 per thousand gallons, not including billing and customer services costs. Proposed cost-of-service results are consistent between customer classes as follows.
• The monthly charge for single-family is slightly higher than the monthly charge per multifamily unit. This is because more billing effort is needed for single-family than for multifamily units.

• Commercial and packing houses are based on a volume rate, plus and allocation of billing and customer service based on customer count.
• Schools are based on student counts, which has been cross-checked against winter baseload (inside) water usage, plus an allocation of billing and customer service based on customer count.

The most significant finding from the cost-of-service analysis is that, for the existing revenue contribution by rate class, the values for Schools and Packing are very low, as with water. This, again, is because metering was not being reported in.

The results are illustrated in the bar chart. The modeling calculations are shown in Attachments M though O.

XIX. Wastewater Rate Setting
The goal of rate setting is to establish a combination of fixed monthly rates and volume rates that reasonably achieve the cost-of-service revenue requirements for each rate class. Further, as with water, rather than increasing the rates the full amount needed in the first year, the initial increase is spread over two years to soften the impact on ratepayers. The proposed rates over the fiveyear planning period are shown in Attachments P and Q. A draft of the proposed proposition 218 notice is in Attachment R.

The percentage increases between current rates and proposed rates are different in the rate table from the cost-of-service analysis because the cost-of-service comparison assumes the full increase needed is applied in the first year. Additionally, the rate table compares to current rates assuming they had been fully billed and paid. Finally, the comparison for single- and multi-family in the rate table assumes no additional charges above 10,000 gallons per month in the current rates. The comparison in the cost-of-service section compares the true cost-of-service allocations needed to what was received from customers as payments. For example, in the first year, a single-family customer that has used less than 10,000 gallons per month, would have paid $39.60, and would pay exactly 24 percent more for a total of $49.04 in the proposed monthly rate.

As stated earlier, single- and multi-family wastewater rates are no longer proposed to be based on potable metered water volumes. The inequitable result currently is to bill these customers for irrigation use during the summertime, especially since the volume billed was applied to volumes over 10,000 gallons per month.

Commercial, packing houses and all other customers are proposed to pay a fixed monthly rate plus a volume rate for all potable volumes metered. Special language is provided in the rate table such that other customers with irrigation, cooling tower use, or other uses that do not result in wastewater discharge may request an exemption from charges for such water. If possible, landscape water especially should be metered separately such that it can be easily exempted from wastewater charges. A comparison chart is shown below for a commercial customer with a one-inch meter.

As stated previously, the senior rate is not proposed to be offered going forward, and therefore, is not shown in the rate table.

XX. Wastewater Comparisons
Orange Cove’s residential wastewater rates are proposed to become slightly higher than most other utilities in the comparison below. This is driven by the need to repay negative fund balances, increase revenue to cover ongoing operating expenses, and provide funds for capital repair work needed.

XXI. Wastewater Conclusion
The work of this wastewater study has thoroughly analyzed the financial statements, rates, and revenue of Orange Cove’s wastewater enterprise. The body of this study combined with the various attachments provide the supporting data and calculations confirming the results of the study. The recommended modified rate structure provides an improvement from the previous rate structure, specifically, more accurately allocating costs to provide service across reasonably defined rate classes.

ATTACHMENTS

A. Water Revenue, Expenses, and Fund Balance: 47% Increase First Year 1 2 3 4 5 6 7
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 REVENUES: Audited Audited Unaudited Unaudited Unaudited Projected Projected Projected Projected Projected Projected Projected Projected 47% 4% 4% 4% 4%
Charges for Services $1,698,148 $1,575,905 $1,713,493 $1,665,889 $1,625,000 $1,625,000 $2,388,750 $2,484,300 $2,583,672 $2,687,019 $2,794,500 $2,794,500 $2,794,500Penalties 6,957 12,197 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000Connection Fees 2,400 285 950 500 500 500 500 500 500 500 500Backflow Fees 9,492 6,305 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000Other Income / Transfer In / High School 33,982 21,967 95,896 811 - 49,000 51,000 53,000 55,000 57,000 57,000 57,000Total Revenues $1,698,148 $1,609,887 $1,737,860 $1,778,519 $1,645,263 $1,647,500 $2,460,250 $2,557,800 $2,659,172 $2,764,519 $2,874,000 $2,874,000 $2,874,000EXPENSES:Personnel1 569,271 570,129 703,574 841,019 992,899 923,000 969,000 1,017,000 1,068,000 1,121,000 1,177,000 1,236,000 1,298,000 5%Wholesale water cost2 190,241 281,499 47,986 57,943 131,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 185,000 3%Professional services 119,956 128,836 149,340 43,500 135,810 125,000 131,000 138,000 145,000 152,000 160,000 168,000 176,000 5%Electricity 102,530 117,186 102,342 133,382 182,412 200,000 210,000 221,000 232,000 244,000 256,000 269,000 282,000 5%Insurance 35,943 70,496 30,780 67,489 82,078 85,000 88,000 91,000 94,000 97,000 100,000 103,000 106,000 3%Permitting/Oth Govt (SWRCB) 45,990 54,659 15,216 15,350 15,350 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 3%Supplies / materials / other 247,177 293,300 288,722 226,608 259,373 260,000 268,000 276,000 284,000 293,000 302,000 311,000 320,000 3%Bad Debt 10,385 26,412 (10,848) 10,692 20,243 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 3%Total Operating Expenses (4) 1,321,493 1,542,517 1,327,112 1,395,983 1,819,165 1,779,000 1,858,000 1,941,000 2,027,000 2,117,000 2,211,000 2,309,000 2,410,000Net Revenues Before Debt Service 376,655 67,370 410,748 382,536 (173,902) (131,500) 602,250 616,800 632,172 647,519 663,000 565,000 464,000Long-Term Debt 2005 COP 21,670 21,749 21,712 21,664 21,701 21,721 22,627 21,619 20,692 21,647 21,682 21,682 21,682 1995 Water 48,857 48,732 48,595 48,836 48,553 48,714 48,808 48,345 48,326 48,240 48,575 48,575 48,575 1988 CDWR 48,144 48,144 48,145 48,145 48,145 48,145 24,061 - - - - - -Total Bonds 118,671 118,625 118,452 118,645 118,399 118,580 95,496 69,964 69,018 69,887 70,257 70,257 70,257Net Revenues After Debt Service 257,984 (51,255) 292,296 263,891 (292,301) (250,080) 506,754 546,836 563,154 577,632 592,743 494,743 393,743Non-Operating Revenue/(Expenses) Recovery of Impact Fees - Water CIP - Fund - - - - - - (130,000) (130,000) (130,000) (130,000) (130,000) 0 0 Capital Projects - - - - - - (291,000) (456,000) (671,000) (471,000) (321,000) (300,000) (300,000) Adjustments to reconcile to cash - - (114,313) 29,200 196,720 - - - - - -Net Revenue with non-operating included 177,983 293,091 (95,581) (250,080) 85,754 (39,164) (237,846) (23,368) 141,743 194,743 93,743Cash Fund Balances Cash - Fund 55-1065 52,387 52,387 - - - - - - - - - Operating Cash - Fund 55-1099 (1,385,137) (339,219) (108,849) 184,242 88,661 (161,419) (75,665) (114,829) (352,675) (376,043) (234,300) (39,558) 54,185 Water Drought Grant - Fund 070-1099 0 (38,347) (52,749) (11,894) (73,439) Impact Fees - Distribution - Fund 108 12,912 50,210 83,360 99,212 9,220 Impact Fees - Acquisition - Fund 151 23,313 23,313 51,330 51,330 52,059 Impact Fees - Treatment - Fund 152 325,713 71,070 96,841 113,167 115,572 Impact Fees - Water CIP - Fund 165 896,693 65,447 (264,767) (385,816) (648,084) - (518,084) (388,084) (258,084) (128,084) 1,916 - -Cash FY End (74,119) (115,139) (194,834) 50,241 (456,011) City of Orange Cove Water Enterprise Revenues, Expenses and Fund Balance

B. Water Revenue, Expenses, and Fund Balance: 25% Increase First Year 1 2 3 4 5 6 7
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 REVENUES: Audited Audited Unaudited Unaudited Unaudited Projected Projected Projected Projected Projected Projected Projected Projected 25% 25% 4% 4% 4%
Charges for Services $1,698,148 $1,575,905 $1,713,493 $1,665,889 $1,625,000 $1,625,000 $2,031,250 $2,539,063 $2,640,625 $2,746,250 $2,856,100 $2,856,100 $2,856,100Penalties 6,957 12,197 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000Connection Fees 2,400 285 950 500 500 500 500 500 500 500 500Backflow Fees 9,492 6,305 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000Other Income / Transfer In / High School 33,982 21,967 95,896 811 - 49,000 61,000 63,000 66,000 69,000 69,000 69,000Total Revenues $1,698,148 $1,609,887 $1,737,860 $1,778,519 $1,645,263 $1,647,500 $2,102,750 $2,622,563 $2,726,125 $2,834,750 $2,947,600 $2,947,600 $2,947,600EXPENSES:Personnel1 569,271 570,129 703,574 841,019 992,899 923,000 969,000 1,017,000 1,068,000 1,121,000 1,177,000 1,236,000 1,298,000 5%Wholesale water cost2 190,241 281,499 47,986 57,943 131,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 185,000 3%Professional services 119,956 128,836 149,340 43,500 135,810 125,000 131,000 138,000 145,000 152,000 160,000 168,000 176,000 5%Electricity 102,530 117,186 102,342 133,382 182,412 200,000 210,000 221,000 232,000 244,000 256,000 269,000 282,000 5%Insurance 35,943 70,496 30,780 67,489 82,078 85,000 88,000 91,000 94,000 97,000 100,000 103,000 106,000 3%Permitting/Oth Govt (SWRCB) 45,990 54,659 15,216 15,350 15,350 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 3%Supplies / materials / other 247,177 293,300 288,722 226,608 259,373 260,000 268,000 276,000 284,000 293,000 302,000 311,000 320,000 3%Bad Debt 10,385 26,412 (10,848) 10,692 20,243 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 3%Total Operating Expenses (4) 1,321,493 1,542,517 1,327,112 1,395,983 1,819,165 1,779,000 1,858,000 1,941,000 2,027,000 2,117,000 2,211,000 2,309,000 2,410,000Net Revenues Before Debt Service 376,655 67,370 410,748 382,536 (173,902) (131,500) 244,750 681,563 699,125 717,750 736,600 638,600 537,600Long-Term Debt 2005 COP 21,670 21,749 21,712 21,664 21,701 21,721 22,627 21,619 20,692 21,647 21,682 21,682 21,682 1995 Water 48,857 48,732 48,595 48,836 48,553 48,714 48,808 48,345 48,326 48,240 48,575 48,575 48,575 1988 CDWR 48,144 48,144 48,145 48,145 48,145 48,145 24,061 - - - - - -Total Bonds 118,671 118,625 118,452 118,645 118,399 118,580 95,496 69,964 69,018 69,887 70,257 70,257 70,257Net Revenues After Debt Service 257,984 (51,255) 292,296 263,891 (292,301) (250,080) 149,254 611,599 630,107 647,863 666,343 568,343 467,343Non-Operating Revenue/(Expenses) Recovery of Impact Fees - Water CIP - Fund - - - - - - (130,000) (130,000) (130,000) (130,000) (130,000) 0 0 Capital Projects - - - - - - (291,000) (456,000) (671,000) (471,000) (321,000) (300,000) (300,000) Adjustments to reconcile to cash - - (114,313) 29,200 196,720 - - - - - -Net Revenue with non-operating included 177,983 293,091 (95,581) (250,080) (271,746) 25,599 (170,893) 46,863 215,343 268,343 167,343Cash Fund Balances Cash - Fund 55-1065 52,387 52,387 - - - - - - - - - Operating Cash - Fund 55-1099 (1,385,137) (339,219) (108,849) 184,242 88,661 (161,419) (433,165) (407,567) (578,460) (531,597) (316,254) (47,911) 119,433 Water Drought Grant - Fund 070-1099 0 (38,347) (52,749) (11,894) (73,439) Impact Fees - Distribution - Fund 108 12,912 50,210 83,360 99,212 9,220 Impact Fees - Acquisition - Fund 151 23,313 23,313 51,330 51,330 52,059 Impact Fees - Treatment - Fund 152 325,713 71,070 96,841 113,167 115,572 Impact Fees - Water CIP - Fund 165 896,693 65,447 (264,767) (385,816) (648,084) - (518,084) (388,084) (258,084) (128,084) 1,916 - -Cash FY End (74,119) (115,139) (194,834) 50,241 (456,011) City of Orange Cove Water Enterprise Revenues, Expenses and Fund Balance

C. Water Plant Capital Repair Five-Year Plan Description Life Span Installation Year 2026-27 2027-28 2028-29 2029-30 2030-31 Totals Intake structure pumps (3) 12 years 2002 - - $215,000 $215,000 $215,000 $645,000 Booster pumps with variable speed drives (4) 12 years 2002 $150,000 $150,000 $150,000 $150,000 - $600,000 NTU meters (for testing water clarity) 5 years 2009 $33,000 $33,000 $33,000 $33,000 $33,000 $165,000 Polymer Pump Skids 10 years 2012 $30,000 $30,000 $30,000 $30,000 $120,000 Facility Actuators (15) 7 years 2009 $37,000 $37,000 $37,000 $37,000 $37,000 $185,000 Storage tank internal inspection 5 years 2018 $10,000 - - - - $10,000 SCADA (Automatic Plant
Controls) 10 years 2003 - $200,000 $200,000 - - $400,000 Utility Truck 15 years 2006 $55,000 - - - - $55,000
Fire Hydrant Replacement $6,000 $6,000 $6,000 $6,000 $6,000 $30,000 Annual Totals $291,000 $456,000 $671,000 $471,000 $321,000 $2,210,000

CITY OF ORANGE COVE WATER TREATMENT PLANT FIVE-YEAR CAPITAL REPAIR PLAN

D. Water Cost-of-Service Inputs
Volume Allocations
SF MF Commercial Schools Packing Total
Accts 1,396 943
Median gallons per month* 9,180 9,180
Months per year 12 12
TG/Yr 154,000 104,000 18,000 9,000 18,000 303,000
Volume Allocation % 51% 34% 6% 3% 6% 100%
Billing and Customer Service SingleFamily
MultiFamily Commercial Schools Packing Totals
Billing Units 1,396 33 80 5 6 1,520
Weighting Factor 1.0 2.0 2.0 2.0 2.0
Result 1,396 66 160 10 12 1,644
Allocation 84.9% 4.0% 9.7% 0.6% 0.7% 100%
Water Enterprise Pensonnel Cost Allocations
Totals Comments
Public Works - Water $537,000
Customer Services and Billing $137,000 For Cost allocation based on customer count Management Overhead $295,000
Total $969,000
Must equal: $969,000
s/b $0 $0.00
Orange Cove Treated Water Cost Allocation by Customer Group Projected for FY26/27 with 5% increase from present total amount

E. Water Revenue Requirement Allocation Table
Cost Component ($/yr) Total SingleFamily Apartments Commercial Schools Packing Water Treatment and Distribution $1,721,000 $874,700 $590,706 $102,238 $51,119 $102,238 Debt Service $95,496 $48,536 $32,778 $5,673 $2,837 $5,673 Equipment Replacement $291,000 $147,901 $99,881 $17,287 $8,644 $17,287 Billing & Cust Services $137,000 $116,333 $5,500 $13,333 $833 $1,000 Negative Cash Flow Recovery $144,254 $73,317 $49,513 $8,570 $4,285 $8,570 Total Revenue Requirement $2,388,750 $1,260,787 $778,378 $147,101 $67,717 $134,767 Revenues at Present Rates $1,625,000 $864,000 $604,000 $113,000 $20,000 $24,000 Balance/(Deficency) of Funds ($763,750) ($396,787) ($174,378) ($34,101) ($47,717) ($110,767) 47% 46% 29% 30% 239% 462%
Summary Statistics
Customer Accounts Billed 1,520 1,396 33 80 5 6
Total Volume (TG) 303,000 154,000 104,000 18,000 9,000 18,000 Cost per TG Present $5.36 $5.61 $5.81 $6.28 $2.22 $1.33 Cost per TG Proposed $7.88 $8.19 $7.48 $8.17 $7.52 $7.49 Water Treatment and Distribution $5.68 $5.68
Debt Service $0.32 $0.32
Equipment Replacement $0.96 $0.96
Billing & Cust Services $0.45 $0.76
Negative Cash Flow Recovery $0.48 $0.48
Total Average $/TG $7.88 $8.19
Water Enterprise Revenue Requirement Allocation Table (FY26/27 Planning Year)

F. Water Fixed Monthly Cost Calculations Year 1
Meter Size Code Proposed # Meters Subtotal $/mo Subtot/Mo $/yr Single-Family
5/8 x 3/4 inch 10+R1 1,011
3/4 11 7
1 12 $32.21 378 1,396 $44,962 $44,962 $539,544 $539,544 Multi-Family
5/8 x 3/4 inch 20 $32.21 7 $225
3/4 x 3/4 inch $32.21 $0
1 22 $45.00 6 $270

1.5 23 $90.00 3 $270
2 A2+CA+RZ $144.00 50 $7,200
3 A2+CA+RZ $270.00 3 $810
4 A2+CA+RZ $450.00 5 $2,250
6 A2+CA+RZ $900.00 3 77 $2,700 $13,725 $164,705
Commercial
5/8 x 3/4 inch D1+M2 $32.21 7 $225
3/4 x 3/4 D2 $32.21 35 $1,127
1 D3 $45.00 20 $900

1.5 D4 $90.00 2 $180
2 D5 $144.00 20 $2,880
3 D6 $270.00 - $0
4 D7 $450.00 - 84 $0 $5,313 $63,753
Packing Houses
5/8 x 3/4 inch $32.21
3/4 x 3/4 inch $32.21 1 $32
1 $45.00 1 $45

1.5 $90.00 - $0
2 $144.00 2 $288
3 $270.00 - $0
4 $450.00 2 6 $900 $1,265 $15,182
Schools
5/8 x 3/4 inch $32.21
3/4 x 3/4 inch $32.21 3 $97
1 $45.00 0 $0

1.5 $90.00 - $0
2 $144.00 3 $432
3 $270.00 2 $540
4 $450.00 8 - $0 $1,069 $12,823 $256,464
Totals 1,571 $66,334 $66,334 $796,008 $796,008
5/8 x 3/4 inch $32.21 0.40 Set at Single-Family
3/4 x 3/4 inch $32.21 0.60 Set at Single-Family
1 $45.00 1.00

1.5 $90.00 2.00
2 $144.00 3.20
3 $270.00 6.00
4 $450.00 10.00
6 $900.00 20.00
Water Fixed Revenue Calculation: PROPOSED Yr 1 Subtotal by Class

G. Water Fixed Monthly Cost Calculations Year 2
Meter Size Code Proposed # Meters Subtotal $/mo Subtot/Mo $/yr Single-Family
5/8 x 3/4 inch 10+R1 1,011
3/4 11 7
1 12 $40.26 378 1,396 $56,202 $56,202 $674,430 $674,430 Multi-Family
5/8 x 3/4 inch 20 $40.26 7 $282
3/4 x 3/4 inch $40.26 $0
1 22 $55.00 6 $330

1.5 23 $110.00 3 $330
2 A2+CA+RZ $176.00 50 $8,800
3 A2+CA+RZ $330.00 3 $990
4 A2+CA+RZ $550.00 5 $2,750
6 A2+CA+RZ $1,100.00 3 77 $3,300 $16,782 $201,382
Commercial
5/8 x 3/4 inch D1+M2 $40.26 7 $282
3/4 x 3/4 D2 $40.26 35 $1,409
1 D3 $55.00 20 $1,100

1.5 D4 $110.00 2 $220
2 D5 $176.00 20 $3,520
3 D6 $330.00 - $0
4 D7 $550.00 - 84 $0 $6,531 $78,371
Packing Houses
5/8 x 3/4 inch $40.26
3/4 x 3/4 inch $40.26 1 $40
1 $55.00 1 $55

1.5 $110.00 - $0
2 $176.00 2 $352
3 $330.00 - $0
4 $550.00 2 6 $1,100 $1,547 $18,567
Schools
5/8 x 3/4 inch $40.26
3/4 x 3/4 inch $40.26 3 $121
1 $55.00 0 $0

1.5 $110.00 - $0
2 $176.00 3 $528
3 $330.00 2 $660
4 $550.00 8 - $0 $1,309 $15,705 $314,025
Totals 1,571 $82,371 $82,371 $988,455 $988,455
5/8 x 3/4 inch $40.26 0.40 Set at Single-Family
3/4 x 3/4 inch $40.26 0.60 Set at Single-Family
1 $55.00 1.00

1.5 $110.00 2.00
2 $176.00 3.20
3 $330.00 6.00
4 $550.00 10.00
6 $1,100.00 20.00
Water Fixed Revenue Calculation: PROPOSED Year 2 Subtotal by Class

H. Water Rate Setting Detail: Fixed Monthly and Volumetric Rates Fixed Monthly
$
Current Vol
$
Current
Total
(Linked)
% Fixed % Fixed $ Fixed $ Vol $/TG Vol Total
Single-Family $812,975 $51,025 $864,000 94% 154,000 $1,079,087 50% $539,544 $539,544 $3.50 1,079,087 $0 0.0% Multi-Family $549,165 $54,835 $604,000 91% 104,000 $655,672 25% $164,705 $485,588 $4.67 650,294 -$5,378 0.8% Commercial $98,261 $14,739 $113,000 87% 18,000 $125,863 51% $63,753 $84,044 $4.67 147,797 $21,934 -14.8% Schools $14,046 $5,954 $20,000 70% 9,000 $57,098 22% $12,823 $42,022 $4.67 54,846 -$2,253 4.1% Packing $13,823 $10,177 $24,000 58% 18,000 $113,530 13% $15,182 $84,044 $4.67 99,227 -$14,303 14.4% Total $1,488,271 $136,729 $1,625,000 92% 303,000 $2,031,250 $796,008 $1,235,242 $2,031,250 $0 0.0% $5.36 $6.70 39% 61% $4.08
Calculation of combined non-SF rate for $/TG: 149,000 $695,698 $4.67 Crosscheck $1,488,271 Yr 1 FY26/27 Target from Rev/Exp: 2,031,250 Crosscheck 0 $0
Crosscheck s/b $0 s/b $0 s/b close to $0
Determination of Fixed Monthly and Volumetric Rates Consistent with Cost of Service Model Deviation from COS
Model Results
Present Fixed and Volume Revenue
Projected
TG/Year
COS
Requirement
% Fixed $ Fixed $ Vol $/TG Vol Total
Single-Family 154,000 $1,348,859 50% $674,430 $674,520 $4.38 1,348,950 $90 0.0% Multi-Family 104,000 $819,590 25% $201,382 $607,360 $5.84 808,742 -$10,848 1.3% Commercial 18,000 $157,329 50% $78,371 $105,120 $5.84 183,491 $26,162 -14.3% Schools 9,000 $71,373 22% $15,705 $52,560 $5.84 68,265 -$3,107 4.6% Packing 18,000 $141,912 13% $18,567 $105,120 $5.84 123,687 -$18,225 14.7% Total 303,000 $2,539,063 $988,455 $1,550,608 $2,533,135 -$5,928 0.2% 39% 61% $5.12
Year 2 Target: $2,539,000
Deviation: -$5,865
Projected
TG/Year
COS
Requirement Deviation from COS
Model Results
Second Year Increases

I. Water Rate Table Proposed
7/1/2027 7/1/2028 7/1/2029 7/1/2030
Percent
Change New Rate 25% 4% 4% 4%
Volumetric Rates ($/TG)1
Single-Family $2.21 59% $3.50 $4.38 $4.56 $4.74 $4.93
All Other Customers $2.21 111% $4.67 $5.84 $6.07 $6.31 $6.56 Customer Fixed Charge ($/Mo)2
All Single-Family $48.53 -34% $32.21 $40.26 $41.87 $43.54 $45.28 Multi-Family-Per-Unit $48.53
All Other Customers
5/8 x 3/4" Meter $73.66 -56% $32.21 $40.26 $41.87 $43.54 $45.28 3/4 x 3/4" $77.69 -59% $32.21 $40.26 $41.87 $43.54 $45.28 1" $85.76 -48% $45.00 $55.00 $57.20 $59.49 $61.87
1 1/2" $110.99 -19% $90.00 $110.00 $114.40 $118.98 $123.74 2" $151.35 -5% $144.00 $176.00 $183.04 $190.36 $197.97
3" $242.15 12% $270.00 $330.00 $343.20 $356.93 $371.21
4" $343.05 31% $450.00 $550.00 $572.00 $594.88 $618.68
6" $423.77 112% $900.00 $1,100.00 $1,144.00 $1,189.76 $1,237.35 Untreated Water Sales3 $0.44 209% $1.36 $1.41 $1.47 $1.53 $1.59 Notes:

1. Existing volume rates apply above 10,000 gallons per month. Proposed rates are for all volumes.

2. Existing fixed charges include the first 10,000 gallons per month. Proposed fixed charges do not include 10,000 gallons per month.

3. Untreated water sales do not include a Customer Fixed Charge. Escalates at four percent per year following the initial year.

Multi-Family moved to All Other Customers
Orange Cove Water Rates and Charges
Current
Rates
(2/1/2020)
Proposed Rates
7/1/2026

J. Wastewater Revenue, Expenses, and Fund Balance: 60% Increase First Year 1 2 3 4 5 6 7
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 REVENUES: Audited Audited Unaudited Unaudited Unaudited Projected Projected Projected Projected Projected Projected Projected Projected 60% 4% 4% 4% 4%
Charges for Services $1,200,561 $1,237,528 $1,279,351 $1,186,378 $1,184,073 $1,190,000 $1,904,000 $1,980,000 $2,059,000 $2,141,000 $2,227,000 $2,227,000 $2,227,000EXPENSES:Personnel1 496,487 502,521 554,284 711,295 819,286 789,000 796,000 836,000 878,000 922,000 968,000 1,016,000 1,067,000 5%Electricity 150,620 162,222 137,685 214,029 115,743 84,000 88,000 92,000 97,000 102,000 107,000 112,000 118,000 5%Professional services 125,597 125,674 176,851 71,168 63,970 77,000 81,000 85,000 89,000 93,000 98,000 103,000 108,000 5%Insurance 31,788 52,505 22,706 51,974 61,808 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 3%Permits (CDWR) 36,718 42,886 44,516 48,586 51,935 53,000 55,000 57,000 59,000 61,000 63,000 65,000 67,000 3%Supplies and materials 117,993 207,186 195,493 107,107 194,555 200,000 206,000 212,000 218,000 225,000 232,000 239,000 246,000 3%Bad Debt 5,486 13,952 34,961 (9,545) 38,593 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 3%Total Operating Expenses (4) 964,689 1,106,946 1,166,496 1,194,614 1,345,890 1,295,000 1,321,000 1,380,000 1,442,000 1,507,000 1,575,000 1,645,000 1,719,000 Solar Loan Interest 28,823 20,421 19,258 18,131 16,896 15,698 14,487 14,487 14,487 Solar Loan Principal 107,650 116,052 117,216 118,342 119,577 120,776 121,987 121,987 121,987 Solar transfer in (for other lighting) (20,334) (20,334) (20,335) (20,334) (20,334) (20,335) (20,335) (20,335) (20,335)Solar Loan Total 116,139 116,139 116,139 116,139 116,139 116,139 116,139 116,139 116,139Net Revenue after Solar 235,872 130,582 112,855 (8,236) (277,956) (221,139) 466,861 483,861 500,861 517,861 535,861 465,861 391,861Non-Operating Revenue/(Expenses) Grants and contributions - 0 0 0 - - - - - - - Capital Projects (59,246) (98,905) 0 0 - - (475,000) (380,000) (400,000) (400,000) (250,000) (250,000) (250,000) Transfer Out for lighting other funds (336,633) (17,718) - - - - - - Adjustments to reconcile to cash - 53,651 146,764 (55,930) 89,245 - - - - - -Net Revenue with non-operating included 176,626 85,328 (77,014) (81,884) (188,711) (221,139) (8,139) 103,861 100,861 117,861 285,861 215,861 141,861Change in cash vs Net Rev: s/b 0 ($935) $0 $0 $0Operating Cash - Fund 61 (222,006) (135,743) (212,757) (294,641) (483,352) (704,491) (712,630) (608,768) (507,907) (390,046) (104,185) 111,675 253,536Impact Fees Plant - Fund 109 959,484 984,056 1,009,293 91,185 121,521Impact Fees - Collection - Fund 115 23,048 78,197 120,326 148,107 150,823Sewer CIP - Fund 168 0 0 17,712 1,292 0Cash FY End 760,526 926,510 934,574 (54,057) (211,008) City of Orange Cove Sewer Enterprise Revenues, Expenses and Fund Balance

K. Wastewater Revenue, Expenses, and Fund Balance: 30% Increase First Year 1 2 3 4 5 6 7
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 REVENUES: Audited Audited Unaudited Unaudited Unaudited Projected Projected Projected Projected Projected Projected Projected Projected 30% 30% 4% 4% 4%
Charges for Services $1,200,561 $1,237,528 $1,279,351 $1,186,378 $1,184,073 $1,190,000 $1,547,000 $2,011,000 $2,091,000 $2,175,000 $2,262,000 $2,262,000 $2,262,000EXPENSES:Personnel1 496,487 502,521 554,284 711,295 819,286 789,000 796,000 836,000 878,000 922,000 968,000 1,016,000 1,067,000 5%Electricity 150,620 162,222 137,685 214,029 115,743 84,000 88,000 92,000 97,000 102,000 107,000 112,000 118,000 5%Professional services 125,597 125,674 176,851 71,168 63,970 77,000 81,000 85,000 89,000 93,000 98,000 103,000 108,000 5%Insurance 31,788 52,505 22,706 51,974 61,808 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 3%Permits (CDWR) 36,718 42,886 44,516 48,586 51,935 53,000 55,000 57,000 59,000 61,000 63,000 65,000 67,000 3%Supplies and materials 117,993 207,186 195,493 107,107 194,555 200,000 206,000 212,000 218,000 225,000 232,000 239,000 246,000 3%Bad Debt 5,486 13,952 34,961 (9,545) 38,593 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 3%Total Operating Expenses (4) 964,689 1,106,946 1,166,496 1,194,614 1,345,890 1,295,000 1,321,000 1,380,000 1,442,000 1,507,000 1,575,000 1,645,000 1,719,000 Solar Loan Interest 28,823 20,421 19,258 18,131 16,896 15,698 14,487 14,487 14,487 Solar Loan Principal 107,650 116,052 117,216 118,342 119,577 120,776 121,987 121,987 121,987 Solar transfer in (for other lighting) (20,334) (20,334) (20,335) (20,334) (20,334) (20,335) (20,335) (20,335) (20,335)Solar Loan Total 116,139 116,139 116,139 116,139 116,139 116,139 116,139 116,139 116,139Net Revenue after Solar 235,872 130,582 112,855 (8,236) (277,956) (221,139) 109,861 514,861 532,861 551,861 570,861 500,861 426,861Non-Operating Revenue/(Expenses) Grants and contributions - 0 0 0 - - - - - - - Capital Projects (59,246) (98,905) 0 0 - - (475,000) (380,000) (400,000) (400,000) (250,000) (250,000) (250,000) Transfer Out for lighting other funds (336,633) (17,718) - - - - - - Adjustments to reconcile to cash - 53,651 146,764 (55,930) 89,245 - - - - - -Net Revenue with non-operating included 176,626 85,328 (77,014) (81,884) (188,711) (221,139) (365,139) 134,861 132,861 151,861 320,861 250,861 176,861Change in cash vs Net Rev: s/b 0 ($935) $0 $0 $0Operating Cash - Fund 61 (222,006) (135,743) (212,757) (294,641) (483,352) (704,491) (1,069,630) (934,768) (801,907) (650,046) (329,185) (78,325) 98,536Impact Fees Plant - Fund 109 959,484 984,056 1,009,293 91,185 121,521Impact Fees - Collection - Fund 115 23,048 78,197 120,326 148,107 150,823Sewer CIP - Fund 168 0 0 17,712 1,292 0Cash FY End 760,526 926,510 934,574 (54,057) (211,008) City of Orange Cove Sewer Enterprise Revenues, Expenses and Fund Balance

L. Wastewater Capital Repair Five-Year Plan Description Life Span Installation Year 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 Totals Head Works Screens and Brushes 20 years 2003 $350,000 $350,000 Aeration Basin # 1: Actuators, Air Headers, Air Lines 20 years 2013 $250,000 $250,000 Aeration Basin # 2: Actuators, Air Headers, Air Lines 20 years 2003 $250,000 $250,000
Aerators 20 years 2013 $400,000 $400,000
Flow Meters for Sludge and Recirculation 10 years 2012 $80,000 $80,000Recirculation Pumps 7 years 2013 $50,000 $50,000 $100,000 Digester Pond Aerators 15 years 2013 $125,000 $125,000
Digester Pond Liner 30 years 2003 $350,000 $350,000Annual Totals $475,000 $380,000 $400,000 $400,000 $250,000 $1,905,000

CITY OF ORANGE COVE WASTEWATER TREATMENT PLANT FIVE-YEAR CAPITAL REPAIR PLAN

M. Wastewater Cost-of-Service Allocations: Volume and Billing/Customer Services Volume Allocations
SF MF Commercial Schools Packing Total
Count of units 1,396 943
TG/Mo/Unit 5.00 5.00
TG/Mo 6,980 4,715
TG/Yr 83,760 56,580 13,000 4,180 10,020 167,540
Volume Allocation % 50% 34% 8% 2% 6% 100%
Billing and Customer Service SingleFamily
MultiFamily Commercial Schools Packing Totals
Billing Units 1,396 33 80 5 6 1,520
Weighting Factor 1.0 2.0 2.0 2.0 2.0
Result 1,396 66 160 10 12 1,644
Allocation 84.9% 4.0% 9.7% 0.6% 0.7% 100%
Wastewater Enterprise Pensonnel Cost Allocations
Totals Comments
Public Works - Wastewater $346,000
Customer Services and Billing $138,000 For Cost allocation based on customer count Management Overhead $312,000
Total $796,000 Projected for FY26/27 with 5% increase from present $796,000 Must equal:
$0.00 s/b $0
Orange Cove Sewer Cost Allocation by Customer Group

N. Wastewater Revenue Requirement Allocation Table: 60% Increase First Year Cost Component ($/yr) Total SingleFamily Apartments Commercial Schools Packing Collection and Treatment $1,183,000 $591,430 $399,512 $91,793 $29,515 $70,749 Debt Service $116,139 $58,063 $39,221 $9,012 $2,898 $6,946 Equipment Replacement $475,000 $237,472 $160,413 $36,857 $11,851 $28,407 Billing & Cust Svc $138,000 $117,182 $5,540 $13,431 $839 $1,007 Negative Recovery -$8,139 -$4,069 -$2,749 -$632 -$203 -$487 Total Revenue Requirement $1,904,000 $1,000,079 $601,938 $150,461 $44,900 $106,623 Revenues at Present Rates $1,190,359 $596,236 $439,776 $106,622 $17,537 $30,187 Balance/(Deficency) of Funds ($713,641) ($403,843) ($162,161) ($43,839) ($27,363) ($76,436) -60% -68% -37% -41% -156% -253%
Summary Statistics
Customer Billing Units 1,520 1,396 33 80 5 6
Existing Revenue per Unit $36
Calculated Cost per Unit $60
Percent change 68%
Percent of total
Total Volume (TG) 167,540 83,760 56,580 13,000 4,180 10,020 Collection and Treatment $7.06 $35.31
Debt Service $0.69 $3.47
Equipment Replacement $2.84 $14.18
Negative Recovery/Snr Discount ($0.05) ($0.24)
Billing & Cust Svc (Per Month) $7.00 $13.99 $13.99 $13.99 $13.99 $59.70
Collection and Treatment ($/TG) $10.54 $10.54 $10.54 $10.54 $10.54 $10.54 Sewer Enterprise Revenue Requirement Allocation Table (FY26/27 Planning Year)

O. Wastewater Revenue Requirement Allocation Table: 30% Increase First Year Cost Component ($/yr) Total SingleFamily Apartments Commercial Schools Packing Collection and Treatment $1,183,000 $591,430 $399,512 $91,793 $29,515 $70,749 Debt Service $116,139 $58,063 $39,221 $9,012 $2,898 $6,946 Equipment Replacement $475,000 $237,472 $160,413 $36,857 $11,851 $28,407 Billing & Cust Svc $138,000 $117,182 $5,540 $13,431 $839 $1,007 Negative Recovery -$365,139 -$182,548 -$123,311 -$28,332 -$9,110 -$21,837 Total Revenue Requirement $1,547,000 $821,600 $481,375 $122,760 $35,993 $85,272 Revenues at Present Rates $1,190,359 $596,236 $439,776 $106,622 $17,537 $30,187 Balance/(Deficency) of Funds ($356,641) ($225,364) ($41,598) ($16,138) ($18,456) ($55,085) -30% -38% -9% -15% -105% -182%
Summary Statistics
Customer Billing Units 1,520 1,396 33 80 5 6
Existing Revenue per Unit $36
Calculated Cost per Unit $49
Percent change 38%
Percent of total
Total Volume (TG) 167,540 83,760 56,580 13,000 4,180 10,020 Collection and Treatment $7.06 $35.31
Debt Service $0.69 $3.47
Equipment Replacement $2.84 $14.18
Negative Recovery/Snr Discount ($2.18) ($10.90)
Billing & Cust Svc (Per Month) $7.00 $13.99 $13.99 $13.99 $13.99 $49.04
Collection and Treatment ($/TG) $8.41 $8.41 $8.41 $8.41 $8.41 $8.41 Sewer Enterprise Revenue Requirement Allocation Table (FY26/27 Planning Year)

P. Wastewater Rate Setting
Count TG/Yr TG/Mo
TG/
Cust/
Mo
$/ Yr/
Cust
$/ Mo/
Cust
Fixed $/
Mo/ Cust
Vol $/ TG/
Cust
$ Fixed Total/
Yr
$ Vol Total/
Yr
Combined
Revenue
COS
Requirement Deviation
Single-Family 1,396 83,760 6,980 5 $588.54 $49.04 $49.04 - $821,600 - $821,600 $821,600 $0 Multi-Family 943 56,580 4,715 5 $510.47 $42.54 $42.54 - $481,375 - $481,375 $481,375 $0 Commercial 80 13,000 1,083 14 $56.04 $6.52 $53,798 $84,823 $138,621 $122,760 -$15,861 Schools 5 4,180 348 70 $35,993 - $35,993 $35,993 $0
Packing 6 10,020 835 139 $56.04 $6.52 $4,035 $65,377 $69,412 $85,272 $15,861 Total 2,430 167,540 13,962 $1,396,801 $150,199 $1,547,000 $1,547,000 $0 See Schools
30% Increase First Year
Determination of Sewer Services Fixed Monthly and Volumetric Rates Consistent with Cost of Service Model

Q. Wastewater Rate Table
7/1/2027 7/1/2028 7/1/2029 7/1/2030
Percent
Change New Rate 30% 4% 4% 4%
Single-Family and Multi-Family Per Unit $39.60 - - - - - - Single-Family2 - 24% $49.04 $63.76 $66.31 $68.96 $71.72 Multi-Family Per Unit2 7% $42.54 $55.30 $57.51 $59.81 $62.20 Other Customers
Fixed Monthly Cost ($/Mo) Varies3 - $56.04 $72.85 $75.76 $78.79 $81.94 Volume Rate ($/TG)4 $1.32 394% $6.52 $8.48 $8.82 $9.17 $9.54 Schools (Per Student per month)2
High School and Middle Schools Volume based - $1.60 $2.08 $2.16 $2.25 $2.34 Elementary Schools Volume based - $0.90 $1.17 $1.22 $1.27 $1.32 Notes:

2. Proposed rates for single-family, multi-family, and schools no longer have a volume rate.

4. Commercial, industrial, and packing house customers may request an exemption to sewer charges applied to metered potable water volumes that are not discharged into the sewer system. Examples are landscape water, cooling tower water, and water used in industry that becomes product not discharged into the sewer system. In such cases, the burden will be on the customer, at the customer's expense, to demonstrate the volume of water not discharged, such as by installing a separate landscape meter, or by providing submetering evidence and/or calculations quantifying cooling tower or product use. Acceptance of such calculations shall be at the discretion of the City.

3. Existing rates for commercial and industrial are based on water meter size, then charge $1.32/TG for metered water above 10,000 gallons per month.

Orange Cove Wastewater Rates and Charges
Current
Rates1
(2/1/2020)
Proposed Rates
7/1/2026

1. Existing rates for all customers include a volume charge of $1.32/TG based on all metered water usage above 10,000 gallons per month.

R. Draft Proposition 218 Notice

CITY OF ORANGE COVE

NOTICE OF PUBLIC HEARING
Regarding Proposed Water and Sewer Rate Increases
Notice is hereby given that the City Council of the City of Orange Cove (“City”) is considering water and sewer rate increases. The public hearing will take place:

Date: Wednesday, May 13, 2026
Time: 6:30 pm
Location: Orange Cove Senior Center, 699 Sixth Street, Orange Cove, CA You are receiving this Notice because our records indicate that you are a water or sewer customer or a property owner within the City of Orange Cove. This Notice describes the proposed increases and explains how you can participate in the rate-setting process.

This Notice is being furnished to you by the City pursuant to the California Constitution, Article XIIID (also known as “Proposition 218”), which requires that the City notify property owners of proposed increases to property-related fees, such as fees for water and sewer. This serves as notice that the City Council will conduct a public hearing to consider recommended increases in the amounts set forth in this Notice. At the hearing, the City Council will hear and consider objections and protests to the proposed increases described in this Notice. Following the public hearing, the City Council will consider the water rate and sewer rate increase.

Rate Study Report: A Rate Study Report (“Report”) by IGService, dated March 2, 2026, describes the details of the water and sewer rate changes and the method used to calculate the proposed rate changes.

The contents of the Report were presented to the City Council on March 11, 2026, following a preliminary presentation to City Council on January 28, 2026. The Report includes the research, reasoning, and analysis behind the proposed adjustments. The Report is incorporated into this Notice by reference and will be addressed at the Public Hearing. The Report is available at the City’s office at 633 Sixth Street, Orange Cove, CA, and on the City’s internet website at: https://cityoforangecove.com.

Amount of Proposed Modified Rates: The details of existing and proposed rates are included in this Notice. A general explanation and examples of rate changes are shown below.

For all customers, all metered water volumes are proposed to be billed based on volume, whereas presently the first 10,000 gallons per month is included with the fixed monthly cost. The result of these changes is more equitable cost allocation for all customers. Overall water revenue is increased 25 percent in the first and second years, and sewer revenue is increased 30 percent per year in the first and second years, then both water and sewer are increased four percent per year for the third through fifth years to cover projected increasing expenses pursuant to the Study. The overall initial cost-of-service increases are allocated over two years to soften in impact on customers. Three examples follow showing how the increases impact customers. See the proposed rate tables for a complete listing of all the increases.

Single-Family Homes: For a typical home using 8,000 gallons per month currently paying $48.53 per month, the water cost will increase by $11.68 per month in the first year to a total of $60.21 per month. In the second year, the total will increase by $15.09 to $75.30. The sewer rate will increase by $9.44 per month in the first year from $39.60 per month to $49.04 per month and increase by $14.72 per month in the second year to $63.76.

Water for a Commercial Customer: As an example, for a commercial customer using 16,000 gallons per month with a one-inch meter, the cost is presently $99.02. The proposed cost will increase by $20.70 in the first year to a total of $119.72. In the second year the total will increase again by $28.72 to $148.44.

Sewer for a Commercial Customer: Commercial sewer rates are presently based on meter size and volume above 10,000 gallons per month of metered potable water. Accordingly, a commercial customer with a oneinch meter using 16,000 gallons per month currently pays $101.62. The proposed cost will increase by $58.74 in the first year to a total of $160.36. In the second year the total will increase by $48.17 to $208.53.

Sewer rates are proposed to no longer be based on meter size and proposed to be billed completely on volume.

Reasons for the Needed Increases: The City last increased water and sewer rates in 2020. The primary reasons increases are needed are 1) negative operating cash flow, 2) depleted fund balances, 3) projected cost for capital repair of equipment, and 4) ongoing inflationary cost increases. The proposed rates are set only high enough for the City to provide safe and reliable service. Specifically, the proposed rates do not exceed the proportional cost of providing each service.

Details of the rate changes can be found in the Report.

How to Submit a Protest: Protests may be submitted by the record owner of an affected parcel, or a tenant who is a customer-of-record of the parcel and subject to the proposed rates, but only one protest per parcel will be counted. Written protests must contain a clear statement that it is a protest against the proposed increases, identify which utility (i.e. water and/or sewer) increase is protested, and it must include the name of the owner or customer of record, a description of the parcel or parcels (Assessor’s Parcel Number or street address) and an original signature of the owner or customer of record. Written protests regarding the proposed rate changes may be mailed or personally delivered to the City Office at: 633 Sixth Street, Orange Cove, CA, 93646. To be valid, a protest must be in writing and received at the City Office no later than 4 P.M. on the date of the hearing or, if presented at the hearing itself, before the close of the public hearing on May 13, 2026. Fax, e-mail, or copies of protests are not acceptable and will not be counted.

Procedure for Hearing and Determining a Majority Protest: Members of the public are welcome to attend the public hearing regarding the proposed rate changes and will have an opportunity to speak and give testimony; however, only written protests as described below count toward a majority protest. The City Council will hear and consider all objections and protests, if any, to the proposed increases and other matters described in the Report. The City Council may continue the hearing from time to time. At the close of the hearing, if written protests against the proposed increases are presented and not withdrawn by a majority of the record owners (or customers-of-record) of the parcels which would be subject to the increases, the City may not impose the increased rates; instead, rates would continue at their existing levels. If, at the close of the protest hearing, there is no majority protest as described above, the City Council may approve the increases, as proposed, to be effective July 1, 2026.

Legal Challenges: If the City Council adopts the proposed rates, you are hereby notified, pursuant to California Government Code, Section 53759, that any judicial action or proceeding to attack, review, set aside, void, validate, or annul the City Council’s adoption of the proposed rates must be commenced within 120 days of the effective date or of the date of the final passage, adoption, or approval of the resolution adopting the rates.

Additional Information: Please direct questions about the proposed rates to the City Office at 559-626- 4488.

Proposed water rates are shown in the table below. The total water service monthly charge includes the Fixed Charge plus the Volumetric Charge multiplied by the quantity of water used.

Proposed sewer rates are shown in the table below.
7/1/2027 7/1/2028 7/1/2029 7/1/2030
Percent
Change New Rate 25% 4% 4% 4%
Volumetric Rates ($/TG)1
Single-Family $2.21 59% $3.50 $4.38 $4.56 $4.74 $4.93
All Other Customers $2.21 111% $4.67 $5.84 $6.07 $6.31 $6.56 Customer Fixed Charge ($/Mo)2
All Single-Family $48.53 -34% $32.21 $40.26 $41.87 $43.54 $45.28 Multi-Family-Per-Unit $48.53
All Other Customers
5/8 x 3/4" Meter $73.66 -56% $32.21 $40.26 $41.87 $43.54 $45.28 3/4 x 3/4" $77.69 -59% $32.21 $40.26 $41.87 $43.54 $45.28 1" $85.76 -48% $45.00 $55.00 $57.20 $59.49 $61.87
1 1/2" $110.99 -19% $90.00 $110.00 $114.40 $118.98 $123.74 2" $151.35 -5% $144.00 $176.00 $183.04 $190.36 $197.97
3" $242.15 12% $270.00 $330.00 $343.20 $356.93 $371.21
4" $343.05 31% $450.00 $550.00 $572.00 $594.88 $618.68
6" $423.77 112% $900.00 $1,100.00 $1,144.00 $1,189.76 $1,237.35 Untreated Water Sales 3 $0.44 209% $1.36 $1.41 $1.47 $1.53 $1.59 Notes:

1. Existing volume rates apply above 10,000 gallons per month. Proposed rates are for all volumes.

2. Existing fixed charges include the first 10,000 gallons per month. Proposed fixed charges do not include 10,000 gallons per month.

3. Untreated water sales do not include a Customer Fixed Charge. Escalates at four percent per year following the initial year.

Multi-Family moved to All Other Customers
Orange Cove Water Rates and Charges
Current
Rates
(2/1/2020)
Proposed Rates
7/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030
Percent
Change New Rate 30% 4% 4% 4%
Single-Family and Multi-Family Per Unit $39.60 - - - - - - Single-Family2
- 24% $49.04 $63.76 $66.31 $68.96 $71.72
Multi-Family Per Unit2 7% $42.54 $55.30 $57.51 $59.81 $62.20 Other Customers
Fixed Monthly Cost ($/Mo) Varies3 - $56.04 $72.85 $75.76 $78.79 $81.94 Volume Rate ($/TG)4 $1.32 394% $6.52 $8.48 $8.82 $9.17 $9.54 Schools (Per Student per month)2
High School and Middle Schools Volume based - $1.60 $2.08 $2.16 $2.25 $2.34 Elementary Schools Volume based - $0.90 $1.17 $1.22 $1.27 $1.32 Notes:

2. Proposed rates for single-family, multi-family, and schools no longer have a volume rate.

4. Commercial, industrial, and packing house customers may request an exemption to sewer charges applied to metered potable water volumes that are not discharged into the sewer system. Examples are landscape water, cooling tower water, and water used in industry that becomes product not discharged into the sewer system. In such cases, the burden will be on the customer, at the customer's expense, to demonstrate the volume of water not discharged, such as by installing a separate landscape meter, or by providing submetering evidence and/or calculations quantifying cooling tower or product use. Acceptance of such calculations shall be at the discretion of the City.

3. Existing rates for commercial and industrial are based on water meter size, then charge $1.32/TG for metered water above 10,000 gallons per month.

Orange Cove Sewer Rates and Charges
Current
Rates1
(2/1/2020)
Proposed Rates
7/1/2026

1. Existing rates for all customers include a volume charge of $1.32/TG based on all metered water usage above 10,000 gallons per month.

For the Special Meeting of March 24, 2026

CITY OF ORANGE COVE

REPORT TO CITY COUNCIL
TO: Orange Cove City Council
FROM: Samuel A. Escobar, City Manager
SUBJECT: Approve an agreement with A&M Consulting Engineers for on-call engineering services.

ATTACHMENTS: Agreement for professional engineering services and fee schedule RECOMMENDATION:

Staff recommends that the city council approve an agreement with A&M Consulting Engineers for on-call engineering services.

BACKGROUND:

City staff solicited a Request for Qualifications for on-call engineering services. The goal of this solicitation was to locate a highly qualified firm that would be responsible for a full portfolio of services typically performed by a city engineer, such as:
• Reviewing, redlining, and signing tract maps and parcel maps • Reviewing and accepting submitted technical documents • Processing traffic control plans
• Inspecting City improvement projects and developer construction of City improvements and cost estimates.
• Accepting guarantees and reimbursement of guarantees for public improvements • Managing the City’s special assessment process
• Design and construction of public improvements
• Construction management of the City’s capital improvement projects Three proposals were submitted and after evaluation, it was determined that A&M Consulting Engineers is the most qualified firm based on their experience with rural cities and offers the best value to perform these services.

CONFLICT OF INTEREST:

None.

FISCAL IMPACT:

Expenses for on-call engineering services are included in the fiscal year 2025/2026 adopted budget. Additionally, many of these costs are offset by developer fees for services and grant reimbursements.

Prepared by: Jennifer Hernandez Approved by: Samuel A. Escobar REVIEW: Samuel Escobar Finance: City Attorney: _
1 TYPE OF ITEM: COUNCIL ACTION: • APPROVED • DENIED • NO ACTION Consent
Info Item
X Action Item
Department Report
Redevelopment Agency
Public Hearing
Matter Initiated by a Council Member
Other
Continued to:

AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES
THIS AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES (“Agreement”) is effective as of 3/24/2026 and is between the CITY OF ORANGE COVE, a California municipal corporation (“City”), and A&M Consulting Engineers, a California professional corporation (“Consultant”). City and Consultant each are a “Party,” and collectively, the “Parties,” to this Agreement.

City requires the services of a qualified engineering firm to provide grant funding (State & Federal), administration, design and construction administration services for various public facilities owned by the City; some of the facilities will be funded by programs, including, but not limited to, local funds, Community Development Block Grants (CDBG), USDA, FTIP, CMAQ, HIP, HSIP, Caltrans, State & Federal Grants & more.

Consultant warrants that it is specifically trained, experienced, expert and competent to perform such services.

The city and the Consultant therefore agree as follows:

1. Scope of Work. City retains Consultant to provide all the services, equipment and materials necessary to complete as needed engineering services.

2. Standard of Performance. Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner.

Consultant shall always faithfully, competently and to the best of its ability, experience, and talent, perform all services described herein. In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of Consultant under this Agreement.

3. City Engineer. City designates A&M Consulting Engineers to serve under this Agreement as City Engineer for the City of Orange Cove. As the designated City Engineer, A&M shall be responsible for personally providing or supervising all work under this Agreement and otherwise functioning as the City Engineer. Orfil Muniz, PE will be the designated civil engineer which will serve as the responsible City Engineer.

4. Term. Subject to termination under section 10 below, the initial term of this Agreement shall be for the period beginning with the effective date of this Agreement and with no end date, the term of this Agreement shall be on a fiscal year basis from July 1 through June 30 of the following calendar year.

5. Ownership, Delivery, Release, and Reproduction of Information. All documents, information and materials of any type prepared by the Consultant under this Agreement shall be
2 the property of the City, whether completed or in process. Consultant shall not permit the reproduction, release, or use of such documents, information, and materials by any other person except as permitted by this Agreement.
a. City shall upon request provide Consultant with access to all information and data in its possession which are required in connection with the consulting services, including, but not limited to, pertinent environmental reports and supporting technical documents.
b. City shall upon request provide Consultant with access to, and make all provisions necessary to enter upon, public or private lands as required for consultant to perform work under this Agreement.
c. Consultant, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, responses to interrogatories or other information concerning the work performed under this Agreement. A response to a subpoena or court order shall not be considered “voluntary” if Consultant gives City prior notice of such court order or subpoena.
d. Consultant shall promptly notify City Manager or designee if Consultant, its officers, employees, agents or subcontractors are served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any proposed responses to discovery requests to be provided by consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
e. If Consultant, or any officer, employee, agent or subcontractor of consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct.

6. Subcontractors. Consultant is authorized to subcontract any specialized work, provided that the City Manager or designee has given its written approval of each subcontractor in advance of the engagement of the subcontractor. Consultant shall be responsible for payment of subcontractor and shall require subcontractor to comply with this Agreement. 3 7. Compensation. City shall pay to consultant in arrears as compensation in full for all work required by this Agreement a sum not to exceed in any fiscal year the total amount allotted for such services in the City’s annual budget. Consultant’s compensation shall be based on actual services performed and costs incurred at the rates set forth for each task in the
Consultant’s Fee Schedule appearing in Exhibit “A.” The Consultant’s Fee Schedule shown in Exhibit “A” shall remain in effect for the initial term of this Agreement and may be changed annually thereafter upon approval of the City Manager or designee. Progress payments will be made as set forth below based on compensable services provided and allowable costs incurred pursuant to this Agreement. Consultant shall submit to City monthly itemized invoices for the services rendered. If the work is satisfactorily completed, City shall pay such invoice within thirty (30) days of its receipt. If City disputes any portion of any invoice, then City shall pay the undisputed portion within the thirty-day period, and at the same time advise Consultant in writing of the disputed portion.

8. Indemnification. Consultant shall defend, indemnify and hold harmless the City, City Council members, employees, volunteers, agents, and city officials from and against claims, loss, liability, suits and damages (“Claims”), including attorney fees, to the extent caused by the Consultant’s negligent acts, errors or omissions or willful misconduct.

Neither termination of this Agreement nor completion of the acts to be performed under this Agreement shall release either Party from its obligations to indemnify as to any Claims so long as the event upon which such Claims is predicated shall have occurred prior to the effective date of any such termination or completion and arose out of or was in any way connected with performance or operations under this Agreement by either Party, its employees, agents or consultants, or the employee, agent or consultant of any one of them.

Submission of insurance certificates or other proof of compliance with the insurance requirements in this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. The obligation of this indemnity provision shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

9. Insurance. Consultant shall procure the following required insurance coverages at its sole cost and expense and shall maintain in full force and effect for the period covered by this Agreement such insurance against claims for injuries to persons or damages to property which may arise from or in connection with negligent acts, errors or omissions in performance of work hereunder by the Consultant, its agents, representatives, employees or subcontractors.

Minimum Scope
Coverage shall be at least as broad:

Errors and Omissions Professional Liability Insurance. Not less than $1,000,000 per claim and $1,000,000 in the aggregate during the performance of this Agreement. The consultant agrees to purchase and maintain professional liability that insures against professional errors 4 and omissions coverage that may be made in performing professional services and providing coverage for a minimum of two three (3) years after completion of this Agreement.

Commercial General Liability Insurance. As broad as Insurance Service Office (ISO) form number GL0002 (Ed. 1/73) or its equivalent, covering Commercial Liability and Insurance Services Office form GL 0404 or its equivalent, covering Broad Form Commercial General Liability coverage (“occurrence” form CG 00 01) with limits not less than $1,000,000 combined single limit per occurrence, $2,000,000 general aggregate, and $1,000,000 products and completed operations aggregate for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the The general aggregate limit shall apply separately to the project or location or the general aggregate limit shall be twice the occurrence limit doubled.

Automobile Liability Insurance. Insurance Service Office form number CA00 01 (Ed 1/78), or its equivalent) covering Automobile Liability, code 1 “any auto” and endorsement CA 0025, or its equivalent, with a limit not less than $1,000,000 combined single limit per each accident for bodily injury and property damage.

Worker’s Compensation and Employer’s Liability Insurance. Worker’s Compensation Insurance limits as required by Labor Code of the State of California; Employers’ Liability Insurance limits of $1,000,000 each accident or disease.

Deductibles and Self Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved in writing by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, City Council members, employees, volunteers, agents, and city officials; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions
a. General Liability and Automobile Liability Coverages.

1. The City, City Council members, employees, volunteers, agents, and city officials are to be covered as additional insureds as respects liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant using ISO CG 20 10 or CG 20 26 (or equivalent) for ongoing operations, and for construction services, ISO CG 20 37 (or equivlenat) for complete operations; premises owned, occupied or used by the Consultant or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, City Council members, employees, volunteers, agents, and city officials.

2. The Consultant’s insurance coverage shall allow and be endorsed primary insurance as respects the City, its officers, officials and employees. Any insurance or self insurance maintained by the City, City Council members, employees, volunteers, agents, and city officials shall be excess of the Consultant’s insurance and shall not contribute with it.
5 3. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, City Council members, employees, volunteers, agents, and city officials.

4. The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
b. Worker’s Compensation and Employer’s Liability Coverage. The Commercial General Liability, Automobile Liabiliyt and workers’ compensation/Employer’s Liability insurers shall provide endorsements agreeing to waive all rights of subrogation against the City, City Council members, employees, volunteers, agents, and city officials for losses arising from work performed by the Consultant for the City. c. All Coverages. Coverage shall not be suspended, voided, canceled by either Party, or reduced in coverage or in limits except after thirty (30) days’ prior written notice has been given to the City.

Acceptability of Insurers
a. Insurance is to be placed with insurers with a Best’s rating of no less than A:VII.

However, the minimum Best’s rating required of the professional liability insurer is A:V.
b. Any changes in insurance required herein must be approved in writing by the City Attorney’s Office.
c. The Consultant shall provide certificates of said insurance within fifteen (15) calendar days of the effective date of this Agreement.

10. Termination of Agreement. This Agreement may be terminated by mutual agreement or it may be terminated by the City upon giving thirty (30) days’ advanced written notice of intent to terminate the contract. In the event of such termination, Consultant shall be paid for work completed to the date of termination, and any such work completed shall become property of the City and the amount of final fee due and payable by City to Consultant will be subject to negotiation and shall be based primarily on the estimated percentage of work completed.

11. Compliance with Federal, State and Local Laws. Consultant shall be responsible for and shall comply with all applicable laws, rules and regulations that are now in effect or may be promulgated or amended from time to time by the Government of the United States, the State of California, Fresno County, the City and any other agency now authorized or which may be authorized in the future to regulate the services to be performed pursuant to this Agreement. Consultant represents that it currently has and will maintain in effect all proper licensing and permits necessary to providing the services described, including, but not limited to, licensure as a California registered professional civil engineer. Where the services provided pursuant to the Agreement are 6 funded by a federal program, including but not limited to, Community Block Grant funds, Consultant’s performance will be in:
a. Compliance with Executive Order 11246 of September 24, 1965, entitled “Equal Employment Opportunity” as amended by Executive Order 11375 of October 13, 1967 and as supplemented in Department of Labor regulations (41 CFR chapter 60). (All construction contracts awarded more than $10,000 by grantees and their contractors or subgrantees.)
b. Compliance with the Copeland “Antikickback” Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR part 3). (All contracts and subgrants or construction or repair).
c. Compliance with the Davis Bacon Act (40 U.S.C. 276a to 276a7) as supplemented by Department of Labor regulations (29 CFR part 5). (Construction contracts more than $2000 awarded by grantees and subgrantees required by Federal grant program legislation.)
d. Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327330) as supplemented by Department of Labor regulations (29 CFR part 5). (Construction contracts in excess of $2000 and in excess of $2500 for other contracts which involve the employment of mechanics or laborers.) e. Compliance with the provisions of any notice of awarding agency requirements and regulations pertaining to reporting.
f. Compliance with the provisions of any notice of awarding agency requirements and regulations pertaining to patent rights with respect to any discovery or invention which arises or is developed during or under such contract.
g. Compliance with any awarding agency requirements and regulations pertaining to copyrights and rights in data.
h. Compliance with access requirements imposed by the grantee, the subgrantee, the Federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers and records of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts and transcriptions.
i. Compliance with applicable requirements for the retention of all required records for three years after grantees or subgrantees make final payments and all other pending matters are closed.
j. Compliance with all applicable standards, orders, or requirements issued under section 306 of the Clear Air Act (42 U.S.C. 1857 (h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR part 15). (Contracts, subcontracts and sub grants of amounts in excess of $100,000.)
7 k. Compliance with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L 94163, 89 Stat. 871.) [53 FR 8068, 8067, Mar 11, 1988 as amended at 60 FR 19639, 19642, Apr. 19
1995]

12. City of Orange Cove Business License. Consultant and each of its subcontractors will obtain and maintain a valid business license from the City of Orange Cove during the term of this Agreement.

13. Attorney’s Fees. If either Party institutes an action or proceeding for a declaration of rights of the parties under this Agreement, for injunctive relief, or for an alleged breach or default of, or any other action arising out of, this Agreement, or the transactions contemplated hereby, or if either Party is in default of its obligations hereunder, whether or not suit is filed or prosecuted to final judgment, the no defaulting or prevailing party shall be entitled to reasonable attorney’s fees and to any court costs incurred, in addition to any other damages or relief awarded.

14. Law to Govern; Venue. The law of the State of California shall govern this Agreement.

In the event of litigation between the Parties, venue in state trial courts shall lie exclusively in Fresno County.

15. Amendment or Modification. This Agreement may be amended or modified only by written agreement of the Parties hereto. The Parties agree to meet and confer in good faith if amendments or modifications are proposed.

16. Savings Clause and Entirety. If any material provision of this Agreement shall for any reason be held invalid or unenforceable, the invalidity or unenforceability shall not affect any of the remaining provisions of this Agreement.

17. Records of Consultant. Records of Consultant’s direct personnel and reimbursable expenses pertaining to services under this Agreement shall be kept on a generally recognized accounting basis and shall be available for inspection by City or its designees at reasonable times.

18. Assignment. Consultant shall not assign this Agreement, or any part thereof, or any monies due hereunder, without the prior written consent of City.

19. No Third-Party Beneficiary Rights. The Parties agree that no provision of this Agreement shall in any way inure to the benefit of any third person or entity, including applicants for City development permits, so as to constitute any such person or entity as a third person beneficiary of this Agreement or of any of its terms or otherwise give rise to any cause of action in any person or entity not a party to this Agreement.

20. Waiver. Waiver by either Party of any term of this Agreement shall not constitute a waiver of any other term. Waiver of any breach of this Agreement shall not constitute a waiver of any other or subsequent breach. Acceptance by City of any work or services by consultant shall not constitute a waiver of any provisions of this Agreement. 8 21. Nondiscrimination. In connection with the performance of consultant pursuant to this Agreement, Consultant will not willfully discriminate against any employee or applicant for employment because of race, color, religion, sex, ancestry, or national origin.

Consultant will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, ancestry or national origin. Such action shall include, but not limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The City is an equal opportunity employer and requires that all consultants comply with policies and regulations concerning equal employment opportunity. The designated City Engineer and other personnel working on City projects will be required to comply with City policies and practices. Prior to the commencement of work, the designated City Engineer must show evidence of having completed the two-hour AB 1234 Ethics in Public Service training as well as the two-hour supervisory Prevention of Sexual Harassment training. The designated City Engineer will be required to complete subsequent ethics and sexual harassment training in the same manner as City’s Department heads are required to complete such training.

22. Notices. The City department responsible for administering this Agreement is the Finance Department and all written communications hereunder with the City shall be addressed to the Finance Director. All notices, statements, reports, approvals, or requests or other communications, that are required either expressly, or by implication, to be given by either Party to the other under this Agreement shall be in writing and signed for each Party by such officers as each may, from time to time, authorize in writing to so act. All such notices shall be deemed to have been received on the date of delivery if delivered personally or three (3) days after mailing if enclosed in a properly addressed and stamped envelope and deposited in the U.S. Post Office for delivery.

Unless, and until formally notified otherwise, all notices shall be addressed to the Parties at their address shown below:

CITY: CONSULTANT:

CITY OF ORANGE COVE A&M CONSULTING ENGINEERS
Samuel A. Escobar, City Manager Orfil Muniz, P.E., Principal 633 Sixth Street 220 N Locust Street
Orange Cove, CA 93246 Visalia, CA 93291 Attn: City Manager Attn: Orfil Muniz, P.E.

23. Agent of City. In performing the services required under this Agreement, Consultant is acting as an agent, but not an employee, of City, subject to the general supervision and control of its governing body and City Manager or designee. As such, Consultant shall be entitled to the same immunities and protections as any other City employee, exercising discretion under all applicable statutes, regulations, and judicial and administrative precedent, subject to City’s rights of action against consultants for any 9 professional errors or omissions of Consultant. Consultant shall have no right to any or all employment rights and benefits available to City employees. Consultant shall be solely liable and responsible for providing to or on behalf of its employees with all legally required employee benefits. In addition, Consultant shall be solely responsible and save City harmless from all matters relating to payment of the Consultant’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 Consultant may be providing services to others unrelated to City or to this Agreement.

24. Continuity of Personnel. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s Project assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’s Project assigned to perform the services required under this Agreement, prior to any such performance.

25. Conflicts of Interest. Consultant covenants that neither the designated City Engineer nor any officer or principal of consultant has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of the City or which in any way would hinder Consultant’s performance of services under this Agreement.

Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by
it as an officer, employee, agent, or subcontractor without the express written consent of the City Manager. At all times, Consultant shall avoid conflicts of interest, or the appearance of any conflicts of interest, with the interests of City in the performance of this Agreement. The designated City Engineer is a “designated employee” under City’s Conflict of Interest Code and so shall file all required statements of economic interest.

26. New and Entire Agreement. Upon the effective date of this Agreement, all other agreements between the Parties for the provisions of the services described herein are superseded. This Agreement represents the full and entire agreement between the Parties hereto with respect to the matters covered herein.

27. Signature in Counterparts. This Agreement may be signed in any number of counterparts, including facsimile copies which shall be treated as originals, all of which, taken together shall constitute the same instrument.

28. Guarantee of Authority. The persons signing this Agreement guarantee they are legally authorized to sign the Agreement on behalf of the designated Party and that such execution binds the designated Party to the terms of this Agreement.

CITY OF ORANGE COVE A&M Consulting Engineers
By______________________________ By_____________________________ Samuel A. Escobar, City Manager Orfil Muniz, P.E., Chief Financial Officer Approved as to form:
___________________________________
City Attorney
A&M Consulting Engineers
EXHIBIT “A”
2026 HOURLY RATE SCHEDULE

CLASSIFICATION RATE
Principal ................................................................................................................ $200.00/Hour Grant Writer.......................................................................................................... $130.00/Hour Professional Engineer 3 ........................................................................................ $185.00/Hour Professional Engineer 2 ........................................................................................ $175.00/Hour Professional Engineer 1 ........................................................................................ $165.00/Hour Assistant Engineer 3 ............................................................................................. $140.00/Hour Assistant Engineer 2 ............................................................................................. $135.00/Hour Assistant Engineer 1 ............................................................................................. $120.00/Hour Professional Land Surveyor 2 ............................................................................... $180.00/Hour Professional Land Surveyor 1 ............................................................................... $175.00/Hour Assistant Land Surveyor ....................................................................................... $145.00/Hour Environmental Consultant .................................................................................... $170.00/Hour Environmental, Health & Safety Officer .............................................................. $150.00/Hour Construction Engineer........................................................................................... $165.00/Hour Construction Observer ......................................................................................... $155.00/Hour Construction Administrator .................................................................................. $110.00/Hour Technical Assistance...... ....................................................................................... $140.00/Hour Engineering Aide .................................................................................................. $110.00/Hour Survey Party Mobilization .................................................................................... $100.00/Hour 1-Man Survey Party .............................................................................................. $180.00/Hour 2-Man Survey Party .............................................................................................. $250.00/Hour 3-Man Survey Party .............................................................................................. $350.00/Hour LiDAR Scanner ..................................................................................................... $200.00/Hour Equipment Rental and Associated Expense .............................................................. Cost x 1.10 Materials, Printing, Subconsultant Procurement ....................................................... Cost x 1.10 Mileage ....................................................................................................... @ Current IRS Rate Note: A&M Consulting Engineers General Engineering Fee Schedule rates are subject to adjustment annually. Survey party and construction inspector rates are also subject to adjustment upon change in “Prevailing Rate” as determined by the Director of Industrial Relations, State of California. Fees include vehicle mileage unless specified.

A-1

ENGINEERS REPORT /
City of Orange Cove
Projects Update (Mar
24, 2026) Prepared By:

Chris Howard, PE;
Precision Civil
Engineering, Inc.

Rank Project No. Project Name
Grant Const.

End Date /
Target End
Date
Const Est.
($) Grant ($)
Spend Since
Inception
($)
City
Match ($)
City
Match
(%)
1 23-
232.008.0
Title: Small Community Drought Relief - OC Water System Improvements / Scope: 1.0 Mgal Water Tank, Pipelines, Booster Pump Station, Water Wells and Test Holes, etc . The DWR grant has officially expired and is being closed out. All construction work ceased on 2/28/26 per the directive of DWR. The City Manager has made arrangements to reinstate the grant (w/ high confidence) in the late June / early July 2026 time frame. When the grant is reinstated, the City intends to complete the remainder of the on and off site improvements under the current "paused" with Todd Construction. In addition, the City intends to bid and construct the 1.0 Mgal Storage Tank in parallel with the bidding and construction of the associated booster pump station with the balance of the remaining grant funding which is estimated at ~ $5.6M. We anticipate the grant will be extended for ~ 2 years.
2/28/2026
2/28/2026
9,273,865 7,921,640 2,317,961 0 0
2 23-
232.001.0
Title: Sheridan Park Renovation & Welcome Signs / Scope: New playground structure, new park amenities, new lighting, rest room remodel, new landscaping and irrigation system, Park Blvd. monument signs . Construction is substantially complete. The rest rooms remain the hold up to opening, as the contractor has experienced delays associated with the delivery of the vandal resistant light fixtures and custom fabricated stall dividers. The park is to be open to the public when the restrooms are completed. We are projecting a park open to the public date of ~3/31/26. With a official grant opening in early April. A check to the mural artist is scheduled to be issued to the mural artist the week of March 16.
3/31/2026
6/30/2026
2,700,000 2,525,000 2,565,000 0 0
3 23-
232.011.0
Title: Park Boulevard Infrastructure Improvements / Scope: Street improvements, new side walk curb and gutter, sewer main installation, storm drainage infrastructure, driveway approaches, etc. , along Sumner btw Monson and the Amaya Village Apartments . Construction will be substantially complete by 4/1/26. Paving is 90+ complete. Concrete median work remains to be constructed as does the striping work which should take place the week of 3/16/26. Street lighting and west monument electrification to be competed week of 3/23/26. All project related sewer, storm water and water line infrastructure work has been completed. Staff is actively working with the EDA to satisfy several open grant "Special Award Conditions" (SAC's) required to secure reimbursements.
7/16/2026 -
4/15/2026
2,342,000 1,942,800 1,500,000 300,000 20
4 23-
232.037.0
Title: AHSC Adams Ave. - Sustainable & Related Transportation Amenities Improvement s / Scope: Bikeways, streetlights, bus shelters, curb and gutter improvements, fencing, landscaping, drainage improvements, Cal Vans, etc., along Adams Ave. btw Anchor and Jacobs .

We anticipate the project to be substantially complete on or before 4/15/26. Concrete work to be complete 3/20/26. Paving to be completed by 4/3/26 followed by bike lane striping. Bus Shelters are back ordered with a tentative delivery date of 4/21/26. We anticipate all construction will be completed 5/8/26.
12/31/2025 -
5/08/2026
2,226,00 2,220,000 1,548,000 0 0
5 23-
232.016.0
Title: Sequoia View Community Park / Scope: New green field park consisting of playground equipment, ball fields, restroom, play ground structure, landscaping, irrigation, parking lot and access road, etc.

Design work is ~ 80% complete. The target bid time frame is July 2026 for both the park grounds and rest room building. The park grounds component of the project will be bid per the standard public work contracting process. The prefabricated park rest room structure will be procured via a "Sourcewell" procurement contract subject to the approval of the City attorney. The cost of the restroom structure installed is estimated at $478,173.
12/31/2027 -
3/25/2027
1,819,000 1,819,000 150,000 0 0
6 23-
232.009.4
Title: Seven Intersections Improvement Project (HSIP 11-06-021 (27)) / Scope: The project upgrades X-walks and signage at 7 intersections throughout the City . The project will bid on 4/1/26 with award anticipated ~5/1/26. The project is anticipated to be completed on or before 8/15/26.
6/30/2029
9/30/26
277,700 249,930 35,000 27,770 10
7 23-
232.009.5
Title: ATP-SB1 Bike Lane, Sidewalk & X-ing Impvs (025) / Scope:

Construction of bike lanes, sidewalks, ADA compliant ramps, etc. The project is scheduled to advertise for bid the week of 3/16/26 and awarded ~ 5/16/26. Based on a construction duration is 90 days project work is anticipated to be completed mid September 2026.
6/30/2029 -
10/1/26
1,070,000 973,000 125,000 97,300 10
8 23-
232.009.3
Title: Park Blvd. Chip Seal (028) / Scope: Pavement rejuvenation chip seal and striping improvements on Park Blvd. btw Anchor and 5th St. Design 90% Complete. Target Bid 2Q26 w/ Const 3Q26.
6/30/2026 -
9/1/26
286,000 220,731 25,000 65,000 23
9 23-
232.009.6
Title: HSIP Cycle 12 - 2025 Intersection Striping (030) / Scope: The project addresses re-striping of X-walks and signage at 23 locations around the various OC schools. Status; Waiting on Caltrans PE Auth., Target Bid 3Q26. 6/30/2026 -
4Q26
388,000 349,920 10,000 38,800 10
10 23-
232.056.1
Title: Sheridan Park - Parking Lot & ADA Improvements / Scope:

Construct (N) parking lot at north end of Sheridan park, plus road surfacing improvements on 2nd St. frontage along w/ drainage improvement s . Grant Contract for design secured. Design work completed ~50%. City will need to apply for encumbered CDBG construction grant funding. Project Target Bid 2Q26.
12/31/2026 -
4Q26
318,012 318,012 10,000 0 0
11 23-
232.083.0
Title: STBG FY25/26, P1 - Paving Resurfacing & Widening on W. Railroad Ave. f Park Blvd. to Anchor Ave. (31) / Scope: Paving Resurfacing and Street Widening from West Railroad Ave. from Park Blvd to Anchor Ave.

Preliminary Engineering (PE) authorization from Caltrans secured. Project area is being surveyed for plan development.
6/30/2027
2Q27
820,000 725,946 10,000 94,054 12
12 23-
232.083.1
Title: STBG FY25/26, P2 - Paving Resurfacing on W. Railroad Ave. f Hills Valley Rd. to Center St. (32) / Scope: Paving Resurfacing from West Railroad Avenue from Hills Valley Road to Center Street . Preliminary Engineering (PE) authorization from Caltrans secured. Project area is being surveyed for plan development.
6/30/2027
2Q27
1,086,000 961,436 10,000 124,564 12
13 23-
232.083.2
Title: CMAQ FY25/26, P1 - Sidewalk Gaps on W. Railroad Ave. f 4th St. to 5th St. (33) / Scope: Fill-in Sidewalk Gaps from West Railroad Avenue from 4th Street to 5th Street . Preliminary Engineering (PE) authorization from Caltrans secured. Project area is being surveyed for plan development.
6/30/2027
2Q27
271,000 239,916 10,000 31,084 11
14 23-
232.083.3
Title: CMAQ FY25/26, P2 - Sidewalk Gaps _ E. Railroad Ave. f Hills Valley Rd. to 6th St. (34) / Scope: Fill-in Sidewalk Gaps from East Railroad Avenue from Hills Valley Road to 6th Street. Preliminary Engineering (PE) authorization from Caltrans secured. Project area is being surveyed for plan development.
6/30/2027
2Q27
375,000 331,988 10,000 43,012 11
15 23- Parlier Ave. Improvements E. of OCHS: Widening and improvement of Grant Apl. 933,000 232.084.0 Parlier Avenue from east of OCHS to Jacobs Ave., including intersection improvements at Parlier and Jacobs Ave. Status; Mayor to make Washinton DC Trip.