City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Will Barrera,
MEETING DATE: August 19, 2025
ITEM NO: 6.7
SUBJECT: Accept the Proposal for Professional Services for the Sewer Rate Study from Willdan in the Amount of $32,870 and Authorize Staff to Enter into an Agreement.
RECOMMENDATION
Motion to Accept the Proposal for Professional Services for the Sewer Rate Study from Willdan in the amount of $32,870 and Authorize Staff to Enter into an Agreement.
BACKGROUND
The City of Patterson provides sewer services to approximately 6,776 service connections, including 6,495 residential and 281 commercial accounts, as outlined in the 2025 Sewer System Management Plan (SSMP) Update. The sewer enterprise is financially self-sustaining, funded through user rates to cover operational costs, maintenance, and capital improvements necessary to maintain reliable service. Similar to other California cities of comparable size, such as Atwater (population ~32,000) and Los Banos (population ~45,000), Patterson periodically reviews and updates sewer rates to address rising operational costs, infrastructure needs, and regulatory compliance. For instance, Atwater completed a sewer rate study in 2022 to fund system upgrades amid population growth, while Los Banos adjusted rates in 2023 to support ongoing maintenance and expansions. These adjustments ensure long-term sustainability, much like Patterson's approach to balancing affordability with service reliability.
In 2021, the City adopted sewer rates for a five-year period (FY 2021/22 to FY 2025/26). With these rates set to expire, a new Sewer Rate Study is required to develop fair and equitable rates for the next five years, create a ten-year financial plan, and update financing models to ensure sustainable funding for operations and capital projects, in compliance with Proposition 218. The study will include key tasks such as project management and data collection, financial plan model development, cost of service analysis, rate development (including proposed structures and optional rate model), council presentations and public outreach, and preparation of draft and final reports.
ANALYSIS
On June 13, 2025, the City issued a Request for Proposals (RFP) for Professional Consulting Services to conduct a comprehensive Sewer Rate Study. The RFP outlined objectives to develop equitable rates, ensure financial sustainability, and address capital needs.
Proposals were due by July 17, 2025, and evaluated based on four criteria:
· Project Approach and Scope of Services
· Project Team Organization and Qualifications
· Related Experience and Past Projects
· References
Three qualified firms submitted proposals meeting the RFP specifications:
· Bartle Wells Associates (BWA)
· Willdan Financial Services
· Lechowicz & Tseng Municipal Consultants (L&T)
Although, all three firms had good proposals and were very close in cost, Willdan Financial Services excelled in multiple areas, demonstrating superior alignment with the City’s needs.
Willdan’s innovative real-time financial modeling with interactive dashboards enables dynamic scenario analysis and enhanced stakeholder engagement, surpassing the traditional approaches of the other firms and aligning with the RFP’s focus on user-friendly financial tools. Their comprehensive scope fully addresses all RFP tasks and includes proactive additions like Proposition 218 notice preparation and mailing, streamlining administrative processes. With over 20 years of nationwide utility rate studies and four detailed California projects (e.g., Vacaville, Hercules), Willdan exceeds the RFP’s requirement for 3-5 projects, showcasing deeper expertise than BWA’s three projects or L&T’s less detailed summaries. Led by Chris Fisher (26 years of experience) and supported by a large team (84 employees in Financial Services), Willdan offers resource depth and reliability. Their emphasis on graphical dashboards and public outreach strategies provides a stronger platform for clear communication compared to competitors.
While BWA’s prior work with Patterson ensures familiarity, and L&T’s focus on small agencies offers tailored support, Willdan’s innovative tools, comprehensive scope, and extensive experience best position it to deliver a defensible, sustainable sewer rate study that meets Patterson’s financial and operational goals.
FISCAL IMPACT
The proposed contract with Willdan Financial Services is $32,870.00, which includes all tasks outlined in the RFP’s Scope of Service. Adequate funds are allocated in the FY 2025/2026 Sewer Enterprise Fund budget to cover this expense, ensuring no additional fiscal impact.