Professional Services Agreement with LT Municipal Consultants for Sewer Rate Stu

POINT ARENA CITY COUNCIL

AGENDA ITEM SUMMARY
AGENDA ITEM: VIII A
MEETING DATE: 3/17/2026
TITLE
Professional Services Agreement with LT Municipal Consultants for Sewer Rate Study

RECOMMENDED ACTION
Adopt a Professional Servies Agreement with LT Municipal Consultants to conduct the sewer rate study for City of Point Arena and authorize the City Manager to execute the agreement.

ANALYSIS
The City of Point Arena’s wastewater treatment plant (WWTP) and sewer collection system represent the City’s largest and most critical infrastructure asset. This system has reliably served the community for many years and, despite being a relatively basic treatment facility, it continues to operate in compliance with its regulatory permits.

The City’s last comprehensive sewer rate study was completed in 2016. Operation and maintenance costs have significantly increased due to labor, materials, energy, regulatory compliance, and ongoing maintenance of aging infrastructure. The current sewer rates do not align with the true cost of providing wastewater service. Continuing to operate under the existing rate structure limits the City’s ability to adequately plan for maintenance, repairs, and future capital improvements.

A sewer rate study is an important financial planning tool that evaluates the full cost of operating and maintaining the wastewater utility and develops a rate structure that is intended to be equitable, sustainable, and compliant with California law (Propositions 218 and 26). Conducting a rate study will allow the City to analyze current operating expenses, project future financial needs, and develop a multi-year rate plan that ensures the wastewater system can continue to operate safely and reliably. Furthermore, the State Water Board Point Arena Infiltration, Inflow, and Pipeline Capacity Project (I&I Grant) requires that a sewer rate study be conducted and completed by September 15, 2026.

LT Municipal Consultants (LTMC) is a woman-owned consulting firm located in the Bay Area that specializes in financial planning, utility rate and fee studies, and management consulting for California public agencies. The firm has extensive experience working with small public utilities and has completed more than 100 rate studies compliant with California law. LT Municipal Consultants aim to complete the Point Arena Sewer Rate Study such that new rates can be implemented for Fiscal Year 26/27 (July 1, 2026).

LTMC’s proposed scope of work includes collection and review of financial and operational data, developing a financial plan that evaluates future operating and capital improvement needs, and conducting a cost-of-service analysis to ensure that costs are fairly allocated among customers. The study will include a five-year rate adjustment plan, a comparison of Point Arena’s rates with those of similar communities, and final analysis and recommendation reports.

Sewer service is currently billed as a fixed charge on the annual property tax roll. The study will evaluate continuing that approach and allocate costs using industry-standard wastewater flow and pollutant loading estimates. This method allows costs to be distributed proportionally among customer types, with higher-strength wastewater users such as restaurants assigned more equivalent dwelling units (EDUs) than lowerstrength users such as retail or office spaces.

The study will also include public outreach and legally required notification procedures associated with Proposition 218, including preparation of notices, coordination with the City’s legal counsel, and conducting the public hearing process. These steps ensure transparency and provide property owners with an opportunity to comment on or protest proposed rate adjustments.

An updated sewer rate study will provide the City with a clear financial roadmap for maintaining and operating the wastewater system by establishing rates that accurately reflect the cost of service and ensure the long-term sustainability of the wastewater enterprise.

FISCAL IMPACT
The total cost of the sewer rate study is $12,720. The Inflow and Infiltration (I&I) Grant will fund $8,000 of the cost, with the remaining $4,720 temporarily funded by the General Fund until a reimbursement source is identified. Staff is exploring potential reimbursement opportunities, including Community Project Funding through Congressman Jared Huffman.

ATTACHMENTS

1. Proposal to Provide Sewer Rate Analysis

2. Professional Services Agreement – LT Municipal Consultants

CITY MANAGER SIGNATURE
_________________________________
Molly C. Haviland, City Manager
1 January 27, 2026
Molly C. Haviland, City Manager
City of Point Arena
P.O. Box 67
Point Arena, CA 95468
RE: Proposal to Provide Sewer Rate Analysis
Dear Molly,
LT Municipal Consultants (LTMC) is pleased to submit a proposal to the City of Point Arena (City) for a Sewer Rate Study. LTMC is a woman-owned firm located in the Bay Area that focuses on financial planning, utility rate and fee studies, and management consulting for California public agencies. We provide start-to-finish assistance including conducting the cost of service analysis, developing a rate plan, providing public presentations, and conducting Proposition 218 notification and compliance. Principal Alison Lechowicz has over 19 years of consulting experience and our staff has completed over 100 studies compliant with Propositions 218 and 26.

LTMC specializes in providing services to small public utilities. We are currently completing a water and sewer rate study for the City of Fort Bragg, and in 2022, we completed a similar study for the City of Rio Dell. Other examples of our work include rate studies for the Graton Community Services District (Sonoma County), studies for multiple Lake County service areas, and a water rate study for the Hussey Ranch Corporation Community Services District (Del Norte County). Please see a listing of additional LTMC projects included as an attachment to this proposal. We will bring our experience gained from these projects to our work for the City of Point Arena.

SCOPE OF SERVICES
Provided below is LTMC’s proposed scope of services for the Sewer Rate Study. We remain flexible to add or remove tasks to meet the City’s needs and adjust our budget accordingly.

1. Project Kickoff & Data Gathering: Assemble the necessary data to complete the study. The goal is to understand the wastewater utility’s financial standing, current rate structure, capital improvement funding needs, and customer information. We will gather readily available information from public sources and submit a data needs list for remaining items prior to a virtual kickoff meeting. The virtual kickoff is conducted to review available information and resolve questions.

2. Financial Plan: With staff input, we will estimate future operating and capital expenditures to determine annual revenue needs. LTMC will evaluate and recommend targets for emergency reserves, rate stability reserves, long term capital reserves, or other categories as appropriate. 909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182
LTmuniconsultants.com
2 3. Cost Allocation & Rate Design: We understand that the City currently bills for sewer service based on fixed charges collected on the annual property tax roll. Most likely, we will recommend continuing this billing method as winter water use data is not available from the local private water company. LTMC will use industry standard wastewater flow and pollutant loading estimates to proportionally allocate costs to customers. High strength customers such as restaurants and bakeries will be allocated more equivalent dwelling units (EDUs) than low strength customers such as retail shops and offices. LTMC will review rate options and propose a 5-year plan for rate changes. This task will also include a survey comparing the proposed rates to the rates of other local agencies.

4. Draft & Final Reports: Prepare a draft report explaining the alternatives, documenting costs, and calculating updated rates. Drafts will be revised as directed and resubmitted as the final report.

All staff comments and input from elected officials will be incorporated and recommendations will be updated accordingly. The report will serve as the City’s Proposition 218 administrative record. Under this task, LTMC will also draft the Proposition 218 notice of public hearing. We will coordinate with the City’s legal counsel for review. As needed, LTMC will also draft newsletters, mailers, or social media postings for public outreach.

5. Meetings & Presentations: Throughout the study, LTMC proposes to conduct virtual meetings with the project team to review progress, answer questions, and revise the calculations. In addition to these progress meetings, we propose to conduct up to two (2) in-person meetings.

The first meeting will be to inform City Council of proposed rate adjustments and gain input OR be conducted as a community outreach meeting. The second in-person meeting will be to conduct the Proposition 218 hearing. LTMC will prepare PowerPoint files and accompanying documents in advance for project team review and inclusion with meeting materials.

6. Proposition 218 Notification: LTMC will conduct all legally required Proposition 218 notification of rate changes for the City’s customers. We will compile a master mailing list of ratepayers and property owners in the service area and coordinate the printing and mailing of the notice of public hearing in English. LTMC will conduct the Proposition 218 public hearing on behalf of the City, manage the public comment period, tabulate any protests received, and certify the results.

STAFF ASSIGNMENT
Alison Lechowicz will be the Principal-in-Charge and lead Financial Analyst on this assignment. She will be assisted by Financial Analyst I – Isabel Aluzzi. Sophia Mills - Financial Analyst II will provide peer review and act as a substitute for Ms. Lechowicz if needed. Ms. Lechowicz’s resume is provided as an attachment.
3 AVAILABILITY AND FEES

1. LTMC is prepared to begin work upon your authorization to proceed. We commit to completing the Sewer Rate Study such that new rates can be implemented by July 1, 2026.

2. All work will be performed by LT Municipal Consultants. Alison Lechowicz will be placed in charge of the work and will devote time and effort to the project as needed.

3. The billing rate for firm Principal Alison Lechowicz is $250/hr, Financial Analyst II Sophia Mills is $160/hr, and Financial Analyst I Isabel Aluzzi is $120/hr. Expenses such as travel, printing, and mailing are billed at cost without markup.

4. LTMC’s total not-to-exceed cost to complete this assignment is $12,720 including expenses for two (2) in-person meetings and printing and mailing expenses as shown in the table below. Fee and expenses are payable monthly in accordance with the Billing Rate Schedule 2026/27.

BILLING RATE SCHEDULE 2026/27
LT Municipal Consultants’ hourly rate is $250 for Principals, $160 for Financial Analyst II, and $120 for Financial Analyst I. Principal Alison Lechowicz will serve as project manager and be the primary consultant for the assignment. No subconsultants are needed for this assignment. The professional time rate includes all overhead and indirect costs. Direct expenses incurred on behalf of the client will be billed at cost. Direct expenses include, but are not limited to:
o Travel, meals, lodging o Automobile mileage
o Printing and mailing o Courier services and mailing costs o Special legal services
LTMC’s hourly rate schedule is part of the quote for use in invoicing for progress payments and for any work that is requested by the City in addition to this scope of services.

Lechowicz Mills Aluzzi
Project Mgr Financial Analyst II Financial Analyst I
$250/hour $160/hour $120/hour

1. Kickoff & Data Gathering 2 0 4 6 $980

2. Financial Plan 4 0 6 10 $1,720

3. Cost Allocation & Rate Design 6 0 2 8 $1,740

4. Draft & Reports 6 2 8 16 $2,780

5. Meetings & Presentations 12 0 6 18 $3,720

6. Proposition 218 Notification 2 0 4 6 $980
Subtotal 32 2 30 64 $11,920
$500
Printing and mailing (1 mass mailer for 150 customers) $300 TOTAL PROJECT BUDGET 32 2 30 64 $12,720

PROJECT TASKS
HOURS
BUDGET
Total
Travel expenses for two (2) in-person meetings
4 SCHEDULE
Below is LTMC’s draft schedule for the Sewer Rate Study with the Proposition 218 hearing in June 2026 (i.e. in time for a July 1, 2026 implementation date). We are happy to adjust the schedule as needed.  January/February - LTMC and City staff work together to gather data and review draft results  March - finalize results; LTMC could make an information-only presentation to City Council on 3/17 to get input; this gives us time to make any adjustments before drafting the final report.  April 16 - Packet due for City Council meeting; LTMC submits final rate study report and draft Prop 218 notice
 April 21 - Regularly scheduled City Council meeting. City Council approves the rate study report; authorizes staff and consultant to move forward with public noticing (LTMC on Zoom)  May 1 - Postmark date for Prop 218 mailing (46 days in advance of the public hearing; LTMC will conduct the mailing)
 Mid-May - Customer outreach meeting; informal meeting that does not need to be agendized (LTMC in-person)
 June 16 - Prop 218 hearing at the regularly scheduled City Council meeting (LTMC in-person)  July 1 - New sewer rates go into effect absent a majority protest  August 10 - Tax roll due to County
 September 15 - Water Board rate study deadline
LTMC would very much like to work for the City on this assignment and hope that this proposal will constitute a suitable basis for our selection. We remain flexible to work with you to revise our scope and fee to meet your needs.

Very truly yours,

LT MUNICIPAL CONSULTANTS
Alison Lechowicz, Principal
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182
[email protected]
5 Attachment A: Engagement Letter
Attachment B: Recent Experience
Attachment C: Alison Lechowicz’s Resume
ATTACHMENT A: ENGAGEMENT LETTER
LT Municipal Consultants is authorized to conduct a Sewer Rate Study for the City of Point Arena at a rate of $250 per hour for Firm Principal, $160 per hour for Financial Analysts II, and $120 per hour for Financial Analysts I. The total not-to-exceed fee is $12,720 including two (2) in-person meetings for the scope of work shown in the attached proposal and printing and mailing of the City’s Proposition 218 notice.

By:_____________________________ Date:______________
Molly C. Haviland, City Manager
City of Point Arena
P.O. Box 67
Point Arena, CA 95468
6 Provided below is a sampling of LTMC’s recent projects for small public agencies. The vast majority of our rate studies have been for agencies serving populations of 30,000 or fewer.

CLIENT

ACCOUNTS

OR PARCELS PROJECT
Hussey Ranch Corporation CSD 70 Water Rate and Capacity Fee Study (2026) Reclamation District 2106 90 Groundwater Fee Study (2023) Monte Verdi Estates (Fresno CSA 44D) 125 Water and Sewer Rate Study (2025) Auburn Valley CSD 140 Water and Sewer Rate Study (2025) Lanare CSD 155 Sewer Rate Study for Consolidation (ongoing) Hayward Mobile Country Club 240 Water Rate Study (2023 & 2025) Mokelumne Hill Sanitary District 290 Sewer Rate Study (ongoing) City of Loyalton 350 Water Rate Study (2024)
Spring Valley Waterworks District 410 Water Rate Study (2024) Graton CSD 450 Sewer Rate and Capacity Fee Study (2025) Summerland Sanitary District 480 Sewer Rate Study (2023 & 2025) Terra Bella SMD (Tulare County) 500 Sewer Rate Study (2025) City of Westmorland 530 Water and Sewer Rate Study (ongoing) Nipomo CSD (Blacklake) 560 Blacklake Sewer Rate Study (2018) Blacklake Streetlight Rate Study (2022)
Christian Valley Park CSD 630 Water Rate Study (2024)
Biggs West-Gridley Water District 670 Standby Fee Study and Balloting (2024) Quail Lakes Estates (Fresno CSA 47) 710 Water and Sewer Rate Study (2025) McMullin Area GSA 1,150 Groundwater Fee Study (2018 & 2023) Kelseyville Waterworks District 1,200 Water and Sewer Rate Study (2024) South Fork Kings GSA 1,200 Proposition 218 Assessment Balloting (2023) City of Bishop 1,200 Water and Sewer Rate Study (ongoing) City of Rio Dell 1,300 Water and Sewer Rate Study (2022) City of Gonzales 2,000 Water and Sewer Rate Study (2023) City of Fort Bragg 2,800 Impact Fee Study (2024)
Water and Sewer Rate Study (ongoing)
CSA - County service area; CSD - community services district; GSA - groundwater sustainability agency ATTACHMENT B: RECENT EXPERIENCE

ATTACHMENT C: RESUME
Alison Lechowicz

EDUCATION
o Columbia University
Master of Public Administration
o University of California, Berkeley
Bachelor of Science
Conservation & Resource Studies

EXAMPLE ASSIGNMENTS
Stege Sanitary District (Contra Costa
County): Sewer rate and connection fee study.

Conducted extensive review of water usage
patterns to determine flow rates of customer
classes. Proposed a 5-year phase-in for a new
multifamily rate.
___________________________________
City of Gonzales (Monterey County):

Conducted a water and sewer rate study with a
focus on industrial customers who use the majority
of water in the City. Also completed a technical
memorandum documenting best practices for
addressing industrial wastewater permit violations.
___________________________________
Town of Discovery Bay CSD (Contra Costa
County): Long-serving financial consultant for the
Town, having conducted multiple water and sewer
rate studies and capacity fee studies. Met with
developers at their offices to answer questions and
address concerns. Assisted the Town in fee updates
to accommodate new denitrification requirements.
_________________________________
Graton Community Services District
(Sonoma County): The District had not raised
sewer rates in over 10 years and revenues had fallen
behind the cost of service. Reviewed detailed
property records and provided new multifamily
sewer rate options to better comply with legal
requirements.
____________________________________
Summerland Sanitary District (Santa Barbara
County): Completed a sewer rate study with fixed,
EDU-based charges billed on the tax roll. Provided
various multifamily fee options to respond to a potential lawsuit. o 19 years consulting experience: 9 years Cofounder and Principal at LTMC Municipal Consultants, 7 years as Principal and Financial
Analyst at Bartle Wells Associates, 3 years as
Financial Analyst at Carollo Engineers
o Testified as an expert witness at the
CA Public Utilities Commission in electric
rate cases of Pacific Gas & Electric, Southern
California Edison, and
San Diego Gas & Electric

EXPERIENCE
alison@
LTmuniconsultants.com
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182 office
(209) 747-3106 cell
1 LT Municipal Consultants
Rev. 1-2026

CITY OF POINT ARENA

PROFESSIONAL SERVICES AGREEMENT
WITH

LT MUNICIPAL CONSULTANTS
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 17 day of March, 2026 (“Effective Date”), by and between the CITY OF POINT ARENA, a municipal corporation (“City”), and LT Municipal Consultants, a Limited Liability Company (entity information) (“Consultant”).

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

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

1.0. SERVICES PROVIDED BY CONSULTANT

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

1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement.

1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the complete satisfaction of the City. Evaluations of the work will be done by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the matters of concern;
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(b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or
(c) Terminate the Agreement as hereinafter set forth.

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

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

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

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

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

2.0. COMPENSATION AND BILLING

2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit “B,” attached hereto and made a part of this Agreement. Consultant’s total compensation shall not exceed twelve thousand seven hundred twenty dollars ($ 12,720.00).

2.2. Additional Services. Consultant shall not receive compensation for any services 3 LT Municipal Consultants
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provided outside the scope of services specified in the Consultant’s Proposal unless the City Manager or designee, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

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

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

3.0. TIME OF PERFORMANCE

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

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

4.0. TERM AND TERMINATION
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4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of six (6) months, ending on September 15, 2026, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. This Agreement may be extended by [1] additional [6] month periods upon mutual written agreement of both parties.

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

The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City.

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

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

5.0. INSURANCE

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

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

5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions:
(a) Additional insureds: “The City of Point arena and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant.”
(b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.”
(c) Other insurance: “The Consultant’s insurance coverage shall be primary insurance as respects the City of Point arena, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Point arena shall be excess and not contributing with the insurance provided by this policy.”
(d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Point arena, its officers, officials, agents, employees, and volunteers.
(e) The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of 6 LT Municipal Consultants
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the insurer’s liability.

5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention.

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

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

6.0. GENERAL PROVISIONS

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

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

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

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

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

6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. 7 LT Municipal Consultants
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IF TO CONSULTANT: IF TO CITY:

LT Municipal Consultants
909 Marina Village Parkway #135
Alameda, CA 94501
City of Point Arena
PO Box 65 451 School Street
Point Arena, CA 92626
Tel: (510) 545-3182 Tel: (707) 882-2122
Attn: Allison Lechowicz Attn: Molly C. Haviland

6.5. Drug-Free Workplace Policy. Consultant shall provide a drug-free workplace.

Consultant’s failure to conform to this requirements shall constitute a material breach of this Agreement and shall be cause for immediate termination of this Agreement by City.

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

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

6.8. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City’s consent, no subletting or assignment shall release Consultant of Consultant’s obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement.

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

Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions 8 LT Municipal Consultants
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contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.

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

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

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

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

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

6.13. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to 9 LT Municipal Consultants
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Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City.

6.14. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 6250 et seq.).

Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.

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

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

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

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

6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.

6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation 10 LT Municipal Consultants
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and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

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

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

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

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

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

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

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

6.27. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

6.28. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this 11 LT Municipal Consultants
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Agreement.
[Signatures appear on following page.]
12 LT Municipal Consultants
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.

CONSULTANT
__________________________________ Date: __________________________ Signature
__________________________________
[Name and Title]

CITY OF POINT ARENA
__________________________________ Date: __________________________ Molly C. Haviland
City Manager

EXHIBIT A

SCOPE OF SERVICES

SCOPE OF SERVICES
Provided below is LTMC’s proposed scope of services for the Sewer Rate Study. We remain flexible to
add or remove tasks to meet the City’s needs and adjust our budget accordingly.

1. Project Kickoff & Data Gathering: Assemble the necessary data to complete the study. The goal
is to understand the wastewater utility’s financial standing, current rate structure, capital improvement funding needs, and customer information. We will gather readily available information from public sources and submit a data needs list for remaining items prior to a virtual kickoff meeting. The virtual kickoff is conducted to review available information and resolve questions.

3. Cost Allocation & Rate Design: We understand that the City currently bills for sewer service based on fixed charges collected on the annual property tax roll. Most likely, we will recommend continuing this billing method as winter water use data is not available from the local private water company. LTMC will use industry standard wastewater flow and pollutant loading estimates to proportionally allocate costs to customers. High strength customers such as restaurants and bakeries will be allocated more equivalent dwelling units (EDUs) than low strength customers such as retail shops and offices. LTMC will review rate options and propose a 5-year plan for rate changes. This task will also include a survey comparing the proposed rates to the rates of other local agencies.

4. Draft & Final Reports: Prepare a draft report explaining the alternatives, documenting costs, and
calculating updated rates. Drafts will be revised as directed and resubmitted as the final report.

6. Proposition 218 Notification: LTMC will conduct all legally required Proposition 218 notification
of rate changes for the City’s customers. We will compile a master mailing list of ratepayers and property owners in the service area and coordinate the printing and mailing of the notice of public hearing in English. LTMC will conduct the Proposition 218 public hearing on behalf of the City, manage the public comment period, tabulate any protests received, and certify the results.

EXHIBIT B

FEE SCHEDULE
BILLING RATE SCHEDULE 2026/27
LT Municipal Consultants’ hourly rate is $250 for Principals, $160 for Financial Analyst II, and $120 for Financial Analyst I. Principal Alison Lechowicz will serve as project manager and be the primary consultant for the assignment. No subconsultants are needed for this assignment. The professional time rate includes all overhead and indirect costs. Direct expenses incurred on behalf of the client will be billed at cost. Direct expenses include, but are not limited to:
o Travel, meals, lodging
o Automobile mileage
o Printing and mailing
o Courier services and mailing costs
o Special legal services
LTMC’s hourly rate schedule is part of the quote for use in invoicing for progress payments and for any work that is requested by the City in addition to this scope of services.

EXHIBIT C

PROJECT SCHEDULE

PROJECT SCHEDULE
Below is LTMC’s draft schedule for the Sewer Rate Study with the Proposition 218 hearing in June 2026 (i.e. in time for a July 1, 2026 implementation date). We are happy to adjust the schedule as needed.
 January/February - LTMC and City staff work together to gather data and review draft results  March - finalize results; LTMC could make an information-only presentation to City Council on 3/17 to get input; this gives us time to make any adjustments before drafting the final report.
 April 16 - Packet due for City Council meeting; LTMC submits final rate study report and draft Prop 218 notice
 April 21 - Regularly scheduled City Council meeting. City Council approves the rate study report; authorizes staff and consultant to move forward with public noticing (LTMC on Zoom)  May 1 - Postmark date for Prop 218 mailing (46 days in advance of the public hearing; LTMC will conduct the mailing)
 Mid-May - Customer outreach meeting; informal meeting that does not need to be agendized (LTMC in-person)
 June 16 - Prop 218 hearing at the regularly scheduled City Council meeting (LTMC in-person)  July 1 - New sewer rates go into effect absent a majority protest  August 10 - Tax roll due to County
 September 15 - Water Board rate study deadline

Point Arena City CouncilMarch 17, 2026

Point Arena City Council
March 17, 2026