Water Resources Economics, LLC
Request for Proposal
#UT 2425Ͳ01
City of San Clemente
Cost of Service Study for
City’s Water Utility
Due Date: February 11, 2025 at 4pm
Contact: Sanjay Gaur
Water Resources Economics, LLC
10830 Pickford Way Culver City, CA 90230
sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405
$WWDFKPHQW
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Water Cost of Service Study
City of San Clemente
Water Resources Economics / sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405 February 10, 2025
Dustin Burnside
Utilities Manager
City of San Clemente
Utilities Division
Subject: City of San Clemente Cost of Service Study for City’s Water Utility (#UT 2425Ͳ01) Dear Mr. Burnside,
Water Resources Economics, LLC (WRE) is pleased to submit this proposal to the City of Clemente (City) to conduct a Water Cost of Service Study. The City is seeking a consultant that is an expert in conducting water cost of service studies in California and that understands the challenges that agencies face in adopting rates. WRE is wellͲqualified to provide this service.
I have conducted hundreds of utility rate studies over the last 25 years throughout California, and my expertise is in developing rates that can withstand different financial and legal challenges. Through this experience I have developed a deep understanding of the various technical, political, and regulatory standards associated with designing utility rates. I have included my resume showing the agencies I have worked with over the last two decades, along with numerous published articles I have authored on this subject. I will be assisted by either Hannah Phan, Nancy Phan, and/or Charles Diamond in the role of Project Analyst. All three of these individuals have at least eight years of consulting experience providing financial planning, rateͲsetting, and miscellaneous fees development services to numerous public utilities in California.
I believe our combined experience uniquely qualifies us for this engagement. We understand the various technical, political, and regulatory standards associated with designing utility rates and have assisted many similar agencies with successfully implementing rates that comply with Proposition 218 requirements.
I am authorized to negotiate and execute contracts on behalf of WRE. This proposal is a firm and irrevocable offer for 90 days. If you have any questions, please contact me at 213Ͳ327Ͳ4405 or by email at sgaur@waterͲeconomics.com. We appreciate the opportunity to submit our proposal, and it would be our pleasure to assist the City on this important project.
Sincerely,
Sanjay Gaur, President
10830 Pickford Way Culver City, CA 90230
sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405
Water Cost of Service Study
City of San Clemente
Water Resources Economics / sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405
TABLE OF CONTENTS
BACKGROUND AND APPROACH............................................................................................................. 3 METHODOLOGY ..................................................................................................................................... 3 WORK PLAN ........................................................................................................................................... 4 PROJECT ORGANIZATION AND STAFFING ............................................................................................ 11 RELATED EXPERIENCE .......................................................................................................................... 14 QUALIFICATIONS AND EXPERIENCE ..................................................................................................... 16 SCHEDULE ............................................................................................................................................ 19 COST PROPOSAL .................................................................................................................................. 20 STATEMENT OF COMPLIANCE.............................................................................................................. 21 RESUMES ............................................................................................................................................. 22
Water Cost of Service Study
City of San Clemente
BACKGROUND AND APPROACH
The City of San Clemente (City) Utilities Division provides water, recycled water, sewer, storm drain, and solid waste services to a population of approximately 66,250 across 18.45 square miles in Orange County in Southern California. The current water rate structure consists of a monthly fixed water service charge by meter size, and a consumption rate per unit of water for each customer class. The last rate study, completed in 2017, implemented five years of rate adjustments through January 1, 2022.
The City is seeking a qualified consultant to conduct a water costͲofͲservice study to establish a proposed water and recycled water rate schedule over the next five years spanning from calendar years 2026 through 2030. The study is to include the development of tenͲyear financial plan projections, a water costͲofͲservice analysis, and proposed fiveͲyear rate calculations. Additionally, the study will include a detailed rate structure evaluation, including wholesale water passͲthroughs, to ensure that the City’s proposed rates align with key policy objectives, supported by actual customer data, as well as the development of demand management rates to provide revenue stability during periods of reduced water sales. The consultant shall also provide additional assistance to City staff throughout Proposition 218 public hearing process to ensure successful adoption of the proposed water and recycled water rates.
METHODOLOGY
WRE proposes to conduct the proposed scope of work based on industryͲstandard methodology outlined in the M1 Principles of Water Rates, Fees, and Charges, Seventh Edition manual published by the American Water Works Association (AWWA). More specifically, we will utilize the BaseͲExtra Capacity method to ensure that proposed rates recover sufficient revenues in proportion to customers’ use of the City’s water system, as required by Proposition 218. The BaseͲExtra Capacity method allocates costs associated with water demand under both peak and average water demand conditions based on actual water use characteristics attributable to each customer class. The overall goal is to develop a sufficient nexus between costs incurred by the City and rates charged to customers, as required by Proposition 218.
WRE is an expert in conducting such studies and is wellͲqualified to develop water and recycled water rates and fees that comply with regulatory requirements (such as Proposition 218), sufficiently funds operating cost and longͲterm capital investments, and meets the City’s financial performance targets.
Maintaining healthy reserve balances and adequate debt coverage is critical to secure debt financing to fund capital improvements. Effective communication with stakeholders and sensitivity to the potential burden on customers is crucial to garner support for these necessary investments. Our scope of work, outlined below, details the tasks we believe are required to successfully conduct this important study.
Water Cost of Service Study
City of San Clemente
WORK PLAN
Based on our experience conducting the City’s prior rate study as well as similar studies for other agencies, WRE has organized the tasks outlined in the RFP’s scope of work. These tasks best describe our proposed approach and will help ensure a successful rate study outcome. TASK 1: PROJECT MANAGEMENT AND INITIATION
Project KickͲoff
A successful project starts with an organized and effective kickͲoff meeting. WRE will conduct a virtual kickͲoff to review the financial, legal, and political landscape of adopting water rates and to define the City’s goals and challenges. Prior to the meeting, WRE will provide a data request list describing data items needed to conduct the study. Topics to be discussed during the kickͲoff meeting include the scope of work, the project schedule, the City’s current rate structures, project roles and responsibilities, data items, and any other concerns that City staff may have.
Project Management
WRE’s project team has extensive experience guiding the rate study process successfully from start to finish. Sanjay Gaur, as Project Manager, will be ultimately accountable for the successful execution of the scope of work. Our project management approach stresses the importance of clearly defining project roles, expectations, and responsibilities at or before the kickͲoff meeting. Additionally, we believe that establishing frequent and open communication between City staff and the WRE project team via phone, email, and/or meetings is critical. To adhere to the project schedule, the WRE team will work to schedule meetings with City staff well in advance of the target meeting date. We will attend weekly and monthly progress meetings with City staff and provide biͲweekly project updates and monthly project invoices that detail the tasks completed and the remaining budget for each task and discuss any potential variance that occurs. Each task identifies the necessary meetings and deliverables to the City.
Quality Assurance Process
We pride ourselves on accurate, highͲquality work, and we achieve this through a rigorous quality assurance process. Each project has multiple checkpoints to ensure the accuracy and validity of the data, technical analyses, and methodologies we use to develop project deliverables. Our process includes rate revenue reconciliations to validate customer data, input summaries for City staff, and independent reviews of the financial plan, costͲofͲservice analysis, rate calculations, and reports.
Meetings:
x One virtual kickͲoff meeting with City staff
Deliverables:
Water Cost of Service Study
City of San Clemente
x Data request list in Microsoft Word
x KickͲoff meeting presentation in Microsoft PowerPoint x KickͲoff meeting minutes in Microsoft Word
x BiͲweekly progress reports and project updates (as requested) x Monthly invoices and cost billings (as requested)
TASK 2: FINANCIAL PLANNING
TenͲYear Financial Plan Projections
At the outset of the financial plan analysis, WRE will conduct a detailed review of the City’s current ordinances, policies, operations and maintenance (O&M) budgets, water supply costs, current water and recycled water rate structures, three years of customer accounts and usage data, and Capital Improvement Plan (CIP) costs, including the Doheny Ocean Desalination Project. Current and anticipated changes to standards and regulations will be considered during the evaluation of current and projected costs. We will work closely with City staff to identify the most accurate assumptions for projecting future costs.
WRE will create a tenͲyear financial plan model in Microsoft Excel to assess the financial health of the City’s water enterprise and then evaluate the level of revenue adjustments required to ensure longͲ term fiscal sustainability. Projecting revenue adjustments over a multiͲyear planning horizon illustrates future rate impacts and potential challenges to the enterprise’s financial health so the City can plan future expenses, monitor reserve balances, and/or schedule CIP to smooth rate impacts. As part of the process, we will evaluate up to three funding options for the capital costs of the future Membrane Filtration Reverse Osmosis (MFRO) and the resulting impacts to the recycled water revenue requirements. We strive for smooth revenue adjustments and minimal rate impacts while achieving financial sufficiency and resiliency. For example, strategic timing of capital expenditures and the use of debt funding and/or reserve funds can help mitigate rate fluctuations and avoid steep increases. WRE will evaluate financial plan scenarios that incorporate projected fluctuations to water and recycled water usage, as well as funding options for the MFRO capital project. The resulting financial plan scenario will allow the City to meet its longͲterm financial objectives, ensure adequate reserves and debt coverage, and sufficiently fund its operating and CIP costs throughout the study period. The ultimate goal of the financial plan task is to determine the total annual water and recycled water revenue requirements (the amount of revenue that water and recycled water rates must recover) over a multiͲyear rateͲsetting period.
Financial Model and Dashboard Functionality
WRE understands the importance of developing a userͲfriendly, transparent, and flexible ExcelͲbased model that City staff can use for future financial planning. Our financial model will be customͲbuilt for the City needs and will include a financial plan dashboard. The dashboard is an effective tool to visually assess how each assumption or scenario impacts the financial plan and is instrumental in the decisionͲ making process. The dashboard can:
Water Cost of Service Study
City of San Clemente
x Change various assumptions such as CIP spending, debt issuance, projected changes in water usage, magnitude and timing of revenue adjustments, etc. x Flag errors and problematic results such as failure to meet debt coverage, below target reserves, etc.
x Perform sensitivity analyses and various “whatͲif” scenarios, so that impacts can be viewed instantaneously with builtͲin screen graphics
WRE will conduct up to three virtual meetings with City staff to discuss the data needs, key assumptions, policy objectives, and preliminary financial plan scenarios for the water enterprise.
Meetings:
x Up to three virtual meetings with City staff
Deliverables:
x Meeting presentations in Microsoft PowerPoint
x Financial model in Microsoft Excel
Water Cost of Service Study
City of San Clemente
TASK 3: COSTͲOFͲSERVICE ANALYSIS
Water and Recycled Water CostͲofͲService Analysis
WRE will conduct a water and recycled water costͲofͲservice analysis in accordance with industry standards and methodologies outlined in the M1 Principles of Water Rates, Fees, and Charges, Seventh Edition manual published by the American Water Works Association (AWWA). More specifically, the water costͲofͲservice analysis will utilize the AWWAͲapproved BaseͲExtra Capacity method, which focuses on different water usage patterns (or peaking factors). The costͲofͲservice analysis is necessary to ensure a strong nexus between the costs incurred by the City’s water enterprise and the rates charged to customers for water service. The costͲofͲservice analysis will be utilized to allocate the water and recycled water rate revenue requirements to “cost causation components” and then to the associated rates and charges. This ensures that customers will be charged proportionally with the cost incurred by the City to provide water services, as required by Proposition 218. WRE will clearly distinguish between fixed and variable costs and work with City staff to determine the appropriate level of fixed cost recovery, recognizing the pros and cons of a higher fixed charge.
WRE will conduct up to two virtual meetings with City staff to discuss the cost allocation methodologies, and preliminary results of the costͲofͲservice analysis for the water enterprise.
Meetings:
x Up to two virtual meetings with City staff
Deliverables:
x Meeting presentations in Microsoft PowerPoint
x CostͲofͲservice analysis in Microsoft Excel
TASK 4: WATER RATE DESIGN
Water and Recycled Water Rate Design
This task includes detailed reviews of current rate structures, development of proposed rates, and comparisons with regional benchmarks to ensure competitiveness and fairness. The overall goal is to design proposed water and recycled water rates that are equitable, compliant, and minimize the financial burden on customers.
The rate design process will include a thorough review of the customer water usage patterns based on historical data, both by customer class and by season, to ensure that the calculated rates are based on actual costs and usage patterns to comply with Proposition 218 requirements. In addition, WRE will review the wholesale water supply passͲthrough rate structure and update the current passͲthrough rate and propose any changes to future passthrough rate adjustments to ensure sufficient revenue recovery in the future. In addition, WRE will explore different options for the City to address affordability assistance to lowͲincome customers given the requirements of Proposition 218.
Water Cost of Service Study
City of San Clemente
WRE will develop proposed rates for potable water and recycled water in compliance with Proposition 218 (California Constitution Articles XIII C & D) and relevant industry standards. An ExcelͲbased rate model will be developed to calculate proposed water and recycled water rates, based on the rate revenue requirement determination under both the current and alternative rate structures selected for consideration. Proposed rates will be calculated for a fiveͲyear period. The rate model will include sample customer bill comparisons to evaluate the impact of the proposed water and recycled water rate changes on various types of customers. These calculations will illustrate the impacts on customers due to changes in the financial plan, costͲofͲservice allocations, and rate structure, aiming to design rates that avoid “rate shock” or steep initial increases.
Rate Survey
WRE will conduct a water rate survey of up to five neighboring and/or similar agencies. We will work with City staff to finalize the list of agencies to survey during the project. The goal of the rate survey is to provide a regional comparison of customer costs for water service and to provide context for potential rate changes.
Meetings:
x Up to three virtual meetings with City staff
Deliverables:
x Meeting presentations in Microsoft PowerPoint
x Water and recycled water rate model in Microsoft Excel x Rate survey in Microsoft Excel
TASK 5: DEMAND MANAGEMENT RATES DEVELOPMENT
WRE will also develop proposed water demand management rates that may be implemented during each of the three water shortage stages: 5Ͳ10% reduction, 11Ͳ20% reduction, and greater than 20% reduction. Reductions in water rate revenues during periods of reduced water demand can present water utilities with serious financial challenges. Water demand management rates are a proven strategy to mitigate this financial risk during periods of reduced water sales. WRE will work with City staff to identify alternative water shortage strategies and determine which rate structure is most appropriate. We will then develop proposed water demand management rates for a period of up to five years based on the selected rate structure. WRE will review preliminary water demand management rates with City staff during virtual meetings.
Water Cost of Service Study
City of San Clemente
Meetings:
x One virtual meeting with City staff
Deliverables:
x Demand management rate model in Microsoft Excel
TASK 6: REPORT DEVELOPMENT
Administrative Record
The rate study report will serve as the City’s administrative record to meet Proposition 218 requirements. An administrative record is a technical document that describes the assumptions, methodologies, results, cost allocations, and calculations that are used to develop the proposed water and recycled water rates. WRE’s reports are highly detailed and provide a clear nexus between the costs of providing water and recycled water service to the City’s customers and the water and recycled water rates that customers are charged for that service, which is a key requirement of Proposition 218.
Draft and Final Reports
WRE will draft a detailed rate study report that presents the proposed water and recycled water rate development process. The report will highlight the major issues and decisions reached during the rate study and will provide detailed explanations of the financial plan projections, any proposed rate and fee structure changes, and proposed water and recycled water rate calculations. City staff and legal counsel will review and provide input on the draft report, which WRE will incorporate into a final report version. If necessary, WRE will schedule one virtual meeting with City staff and legal counsel to discuss comments and feedback on the draft report.
Meetings:
x One virtual meeting with City staff
Deliverables:
x Draft and final report versions in Microsoft Word and/or PDF format TASK 7: PUBLIC WORKSHOPS
Public Workshops
We will attend up to two inͲperson City Council workshops and assist City staff with presenting recommended water and recycled water rates and study results. WRE will work with City staff to develop a schedule of stakeholder meetings as a part of the rate study process. We will conduct workshops with City staff, Council, the Community Advisory Team, and other stakeholders to solicit feedback, gather information, present preliminary and final results, and gain consensus on key decisions.
Water Cost of Service Study
City of San Clemente
Proposition 218 Public Hearing
WRE will attend an inͲperson Proposition 218 Public Hearing, during which the goal is for the City Council to adopt the proposed water and recycled water rates, and miscellaneous fees (if applicable).
WRE will prepare a presentation and assist City staff with presenting a summary of the rate study results. We will be available to answer any questions from the Council or the public that may arise during the meeting. In addition, WRE will provide guidance as requested on how to conduct and facilitate the Public Hearing based on best practices and past experiences with other agencies in California.
Meetings:
x Two inͲperson City Council workshops
x One inͲperson Public Hearing
Deliverables:
x Meeting presentations in Microsoft PowerPoint
TASK 8: MISCELLANEOUS FEES
Miscellaneous Fees Model
WRE will work with City staff to review and evaluate potential updates to the City’s existing miscellaneous waterͲrelated fees listed in the City’s Resolution 10Ͳ48. We will collaborate with staff to understand and determine the fully burdened hourly rate for staff time related to various tasks and other costs associated with such miscellaneous fees. The total cost of certain tasks (for example, Backflow Testing Administration Fee, Meter Installation Fees, Water Application Fee, Hydrant Meter Rentals, etc.) will be included in the fees calculation. WRE will meet with City staff virtually to discuss miscellaneous fees.
Meetings:
x Up to two virtual meetings with City staff
Deliverables:
x Miscellaneous User Fees and Penalties Model in Microsoft Excel Water Cost of Service Study
City of San Clemente
PROJECT ORGANIZATION AND STAFFING
Project Staffing
Our proposed project team for this engagement consists of four team members. Sanjay will serve as Project Manager, and Charles, Hannah, and/or Nancy will assist as Project Analyst. Our team is small by design: we can work efficiently and provide a highͲtouch client experience to ensure a successful study for the City. We specialize in conducting costͲofͲservice rate studies for water and wastewater utilities in California. Please refer to our resumes at the end of the proposal for more detailed qualifications.
In addition to our project team, we will need support from City staff to gather the necessary data and information to complete the study. City staff will also need to be available during virtual and inͲperson meetings during the study process.
Sanjay Gaur, Project Manager
Key Tasks: Serve as main contact for City staff, manage project schedule and budget, lead project tasks and analyses, review and evaluate project deliverables, and ensure successful execution of scope of work
Availability: Sanjay will be available for the duration of the project. Estimated hours spent will be 78 hours, as shown in the Cost Proposal.
Sanjay Gaur
[Project Manager]
Nancy Phan
[Project Analyst]
Charles Diamond
[Project Analyst]
Hannah Phan
[Project Analyst]
Water Cost of Service Study
City of San Clemente
Statement of Qualifications: Sanjay has more than 25 years of financial and rate consulting experience with water and wastewater utilities and has served as a consultant to more than 100 agencies in California, Arizona, Nevada, and the Caribbean. He has provided his insight into utility rate and conservationͲrelated matters through articles in Journal AWWA and other publications and served as an expert source on rates development quoted in the Los Angeles Times and New York Times. He has coͲauthored several industry guides, including AWWA’s Manual M1 Principles of Water Rates, Fees and Charges, 7th Edition; AWWA’s Water Rates, Fees, and the Legal Environment, Second Edition; and Water and Wastewater Finance and Pricing: The Changing Landscape. He is a member of AWWA’s Rates and Charges Committee. Sanjay was a Peace Corps volunteer in Bulgaria. He holds a master’s degree in Applied Economics from UC Santa Cruz and a Master in Public AdministrationͲInternational Development from the Kennedy School of Government, Harvard University. Nancy Phan, Project Analyst
Key Tasks: Perform financial and rate analyses, collect and analyze data, and work with Project Manager to complete project tasks
Availability: Nancy will be available for the duration of the project. Estimated hours spent will be up to 200 hours, as shown in the Cost Proposal.
Statement of Qualifications: Nancy has over nine years of utility rate and financial consulting experience, working with water, wastewater, stormwater, and solid waste utilities primarily along the West Coast. She has assisted agencies on over 80 rate studies throughout her career and specializes in distilling technical concepts into sophisticated, yet easyͲtoͲunderstand financial and rate models, stakeholder presentations, and technical reports. She has been published in the Journal AWWA (“The Power of Data to Improve Water Efficiency and Conservation”) and has presented at and organized several conferences, including the AWWA/WEF Young Professionals Summit, the Pacific Water Conference, and the Washington Association of Sewer & Water Districts Conference. She holds a Bachelor of Arts degree in Business Economics from UC Irvine.
Hannah Phan, Project Analyst
Key Tasks: Perform financial and rate analyses, collect and analyze data, and work with Project Manager to complete project tasks
Availability: Hannah will be available for the duration of the project. Estimated hours spent will be up to 200 hours, as shown in the Cost Proposal.
Statement of Qualifications: Hannah has more than 17 years of financial and rate consulting experience, working with over 50 water, wastewater, recycled water, and solid waste utilities. She is passionate about creating customized financial and rate models that best meet the needs of each individual agency. She has presented study findings and results at numerous public meetings and Water Cost of Service Study
City of San Clemente
attended several AWWA and WEF conferences throughout her career. Hannah holds a Master of Business Administration in Finance degree and a Bachelor of Science degree in International Business from CSU Los Angeles.
Charles Diamond, Project Analyst
Key Tasks: Perform financial and rate analyses, collect and analyze data, and work with Project Manager to complete project tasks
Availability: Charles will be available for the duration of the project. Estimated hours spent will be up to 200 hours, as shown in the Cost Proposal.
Statement of Qualifications: Charles has more than eight years of financial and rate consulting experience with water and wastewater utilities and has served as a consultant to more than 35 agencies in California. He has a passion for water management in California and has presented at multiple conferences, including the California Water Policy Conference and the AWWA CaliforniaͲ Nevada Section Annual Fall Conference. Before he began his consulting career, Charles worked for The Nature Conservancy in California. He holds a Bachelor of Science degree in Environmental Economics and Policy from UC Berkeley and a Master of Environmental Science and Management degree in Water Resources Management from UC Santa Barbara.
Water Cost of Service Study
City of San Clemente
RELATED EXPERIENCE
COASTSIDE COUNTY WATER DISTRICT
766 Main Street
Half Moon Bay, CA 94019
Reference(s):
Mary Rogren, General Manager
[email protected]
(650) 726Ͳ4405
Jeffrey Schneider
Assistant General Manager
[email protected]
(650) 867Ͳ1784
The Coastside County Water District (District) has worked with Sanjay since 2018 and Nancy since 2020. WRE staff have assisted the District with its last several water rate and water shortage rate studies, helping the District navigate significant reductions in customer demand, increases to operating and SFPUC water supply costs, substantial reinvestment into its capital program, water shortage emergencies. Despite high costs of water and a customer base with relatively low perͲcapita water usage, the District can maintain financial sufficiency and resiliency due to successful implementation of water rate increases over the past six years.
CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, CA 92660
Reference(s):
Mark Vukojevic
Utilities Director
[email protected]
(949) 718Ͳ3401
The City of Newport Beach (City) provides water and wastewater service to over 26,000 service connections. Sanjay has assisted the City with numerous water and sewer financial plan and cost of service rate studies over the past decade since the early 2010s. During that time, the City has successfully implemented new water and sewer rates under Proposition 218 process. Sanjay has presented to City Council during each rate study to garner public support and understanding as well as showing different funding options and rate structures that would best meet the City’s needs.
Water Cost of Service Study
City of San Clemente
CITY OF HUNTINGTON BEACH
2000 Main Street
Huntington Beach, CA 92648
Reference(s):
(formerly the Deputy Director of Public Works – Utilities) Alvin Papa
City of Cerritos
Director of Public Works
[email protected]
(562) 916Ͳ1220
The City of Huntington Beach (City) manages over 630 miles of water pipeline, 9 wells and 4 reservoirs, 360 miles of wastewater pipeline, 10,000 manholes, 27 wastewater lift stations, 114 miles of storm water pipeline, 5.3 miles of open channels and 16 flood control stations to provide water and sewer service for its residents. Sanjay served as the project manager for numerous water and wastewater rate studies for the City since the early 2000s. He evaluated different financial plan scenarios and different rate structures that would meet the City’s objectives as well as be defensible under Proposition 218. For each of the study, Sanjay met with the City Council to get their buyͲin for a successful implementation of the proposed rates.
Water Cost of Service Study
City of San Clemente
QUALIFICATIONS AND EXPERIENCE
Company Overview
Water Resources Economics, LLC (WRE) is a microͲbusiness consisting of five team members that specializes in conducting financial planning, costͲofͲservice rate studies, and connection fee studies for water and wastewater utilities in California. Our goal as a firm is to communicate and promote the value of water service. Sanjay Gaur, the proposed Project Manager, has successfully assisted over 100 water and wastewater agencies in California with financial planning and rateͲsetting consulting engagements for over 25 years. He will ultimately be responsible for the success of the study. Either Hannah Phan, Nancy Phan, and/or Charles Diamond will provide key support as Project Analysts. Experience and Qualifications
Our proposed project team has extensive experience conducting rate studies and capacity fee studies in California. We understand the regulatory, political, and financial constraints that most agencies face when adopting new rates. Sanjay Gaur has extensive experience facilitating and presenting at inͲ person public meetings with elected officials at all stages of the rateͲsetting process. This includes customer outreach sessions, rate workshops with elected officials, and public hearings to comply with Proposition 218 requirements. All of our consultants have experience in distilling complex, technical concepts into easyͲtoͲunderstand presentations, financial and rate models, and reports. Our approach puts the client first: we prioritize clear and effective communication with staff, elected officials, and the public throughout the rate study process. We take great pride in our highͲquality work and in our ability to help agencies navigate a changing utility rate landscape.
Relevant Projects
Below is a partial list of water, recycled water, and sanitation (or wastewater) financial planning, cost of service rate studies, or capacity fee studies that at least one project member served in the role of Project Manager or Project Analyst.
# Agency Study
1 Amador Water Agency (CA) Water and Wastewater Rate and Connection Fee Study 2 Central Contra Costa Sanitation
District (CA)
Wastewater Cost of Service and Rate Study Update,
Capacity Fee Calculation
3 City of Brentwood (Northern CA) Water and Wastewater Rate Study 4 City of Calexico (CA) Water and Sewer Rate Study
5 City of Camarillo (CA) Water and Wastewater Rate Study 6 City of Carpinteria (CA) Sewer Rate and Fee Study
Water Cost of Service Study
City of San Clemente
# Agency Study
7 City of Chowchilla (CA) Water and Wastewater Rate Study 8 El Dorado Irrigation District (CA) Water, Recycled Water, and Wastewater Facility Capacity Charge Update Study
9 City of Escondido (CA) Water and Wastewater Rate Study 10 City of Hayward (CA) Water and Wastewater Rate Study, Connection Fee Study
11 City of Hollister (CA) Sewer Rate Study
12 City of Huntington Beach (CA) Water and Sewer Rate Study 13 City of La Habra (CA) Water and Wastewater Rate Study 14 City of Long Beach (CA) Water, Recycled Water, and Wastewater Financial Plan Model
15 City of Malibu (CA) Wastewater and Recycled Water Rates Updates 16 City of Merced (CA) Water and Sewer Rate Study
17 City of Ontario (CA) Water, Wastewater, and Recycled Water Rate Study 18 City of Pleasanton (CA) Water, Wastewater, and Recycled Water Rate Study 19 City of Redlands (CA) Wastewater and NonͲPotable Water Rate Study 20 City of Rio Vista (CA) Water and Sewer Rate and Impact Fee Study 21 City of San Clemente (CA) Water and Wastewater Rate Study 22 City of Santa Cruz (CA) Water Rate Study, Connection Fee Study 23 City of Sierra Madre (CA) Water and Sewer Rate Study 24 City of Simi Valley (CA) Sewer Rate Study
25 City of Tacoma (WA) Wastewater, Stormwater, and Solid Waste Rate Study 26 City of Thousand Oaks (CA) Water and Wastewater Cost of Service and Financial Plan Studies
Water and Wastewater Connection Fee Study
27 City of Ventura (CA) Water and Wastewater Rate Study 28 City of Vista (CA) Sewer Rate and Connection Fee Study 29 City Watsonville (CA) Water, Sewer, and Solid Waste Rate Study 30 East Bay Municipal Utility District
(CA)
Water and Wastewater Cost of Service Rate Study
31 Elsinore Valley Municipal Water
District (CA)
Water and Recycled Water Rate Study, Capacity Fee
Study, and Wastewater Rate Study
32 Fallbrook Public Utilities District
(CA)
Water, Wastewater, and Recycled Water Rate Study
33 Imperial County Gateway County
Service Area (CA)
Water and Wastewater Rate Study
Water Cost of Service Study
City of San Clemente
# Agency Study
34 Jurupa Community Services
District (CA)
Water Budget Rate Study
35 Las Virgenes Municipal Water
District (CA)
Water, Recycled Water, and Wastewater Rate Study
38 Los Alamos Community Services
District (CA)
Water and Wastewater Rate Study
39 San Francisco Public Utilities
Commission (CA)
Water and Wastewater Rate Study
40 Scotts Valley Water District (CA) Water and Recycled Water Rate Study 41 Temescal Valley Water District
(CA)
Water, Recycled Water, and Wastewater Cost of Service
Study
42 Western Municipal Water District
(CA)
Financial Plan, Capacity Fees, and Water Budget Rate
Studies
43 Yorba Linda Water District (CA) Sewer and Water Budget Rate Study, Financial Plan Study, and Cost of Service Rate Study
Water Cost of Service Study
City of San Clemente
SCHEDULE
A proposed project schedule is shown below, assuming a notice to proceed in early April 2025 with finalized rates by October 1, 2025. The proposed timeline outlined below assumes 1) that all requested data items will be provided to WRE in a timely manner, and 2) that City staff will have sufficient availability for WRE to schedule virtual checkͲin meetings in a timely manner. The proposed rates and fees will be implemented March 1, 2026.
Task Key Deadlines
Task 1: Project Management
and Initiation
x Mid/EndͲMay 2025: KickͲoff meeting
x EndͲMay 2025: All requested data items received by WRE Task 2: Financial Planning x MidͲJune 2025: Review financial plan with City staff x Early July 2025: Finalize financial plan
Task 3: Cost of Service
Analysis
x Late July 2025: Review cost of service analysis with City staff Task 4: Water Rate Design x August 2025: Review proposed rates with City staff x End August 2025: Finalize rates
Task 5: Demand
Management Rates
Development
x August 2025: Review demand management rates with City staff
Task 6: Report Development x October 2025: Draft Report x Early November 2025: Final Report
Task 7: Public Workshops x September 2025: City Council workshop x November / December 2025: City Council workshop
x January / February 2025: Public Hearing
Task 8: Miscellaneous Fees x September 2025: Discuss miscellaneous fees methodology and review preliminary fees with City staff
x September 2025: Finalize fees
Water Cost of Service Study
City of San Clemente
Water Resources Economics
COST PROPOSALWRE proposes to complete the proposed scope of work based on the fee table shown below, with a lump sum fee of $73,465. WRE will invoice the City based on percentage completion. Sanjay Gaur will serve as the Project Manager with an hourly billing rate of $325 per hour.
Either Hannah Phan, Nancy Phan, and/or Charles Diamond will serve as the Project Analyst with an hourly billing rate of $210 per hour.
Fee Proposal
Task
Virtual
Meetings
In-person
Meetings
Project
Manager
Project
Analyst
Total
Fee
Task 1: Project Management & Initiation 1 0 8 12 $5,120Task 2: Financial Planning 3 0 16 40 $13,600Task 3: Cost of Service Analysis 2 0 8 24 $7,640Task 4: Water Rate Design 3 0 10 40 $11,650Task 5: Demand Management Rates Development 1 0 4 12 $3,820Task 6: Report Development 1 0 10 60 $15,850Task 7: Public Workshops 0 3 22 12 $10,285Task 8: Miscellaneous Fees 1 0 4 20 $5,500Total 12 3 82 220 $73,465Fee Details Hourly Billing Rate - Project Manager: $325Hourly Billing Rate - Project Analyst: $210 Number of Meetings Billable Hours Proposed Fee
Water Cost of Service Study
City of San Clemente
STATEMENT OF COMPLIANCE
This proposal is in strict compliance with the Request for Proposal and Draft Agreement and no exceptions to either are proposed.
Water Cost of Service Study
City of San Clemente
RESUMES
Resume – Sanjay Gaur, President
TECHNICAL SPECIALTIES
ͲFinancial analysis
ͲCost of service studies
ͲConservation rate structure design
ͲConnection fee studies
ͲPublic outreach
ͲProposition 218 rates
PROFESSIONAL HISTORY
Ͳ Water Resources Economics, LLC, President (2021Ͳpresent) Ͳ Raftelis Financial Consultants, Inc., Vice President (2015Ͳ2021); Senior Manager (2012Ͳ2014); Manager (2009Ͳ2012)
Ͳ Red Oak Consulting, Division of Malcolm Pirnie (2007Ͳ2009) Ͳ MuniFinancial (2005Ͳ2006)
Ͳ A & N Technical Services, (1999–2003)
Ͳ United States Peace Corps, Bulgaria (1995Ͳ1997)
EDUCATION
Ͳ Master in Public AdministrationͲInternational Development, Kennedy School of GovernmentͲ Harvard University (2003)
Ͳ Master of Science, Applied EconomicsͲUniversity of California, Santa Cruz (1994) Ͳ Bachelor of Arts, Economics and Environmental StudiesͲUniversity of California, Santa Cruz (1992)
PROJECT EXPERIENCE
Ͳ Alameda County Water District (CA)Ͳ
Financial Plan Study and Annual Updates,
Conservation Tiered Rate Feasibility
Analysis, Drought Rate Study, Water Cost of
Service and Rate Study, and other AdͲhoc
Support
Ͳ Amador Water District (CA) – Water and
Wastewater Rate Study
Ͳ American Water Company (CA)ͲWater
Rate Study
Ͳ City of Buckeye (AZ) – Water Rate Study
and Capacity fee
Ͳ Borrego Water District (CA) – Financial
Planning Study, Groundwater Sustainability
Plan, Water Rate Study, and Basin
Management Evaluation
Ͳ City of Calexico (CA)ͲWater and Sewer
Rate Study
Ͳ City of Camarillo (CA) – Water and
Wastewater Rate Study, Financial Plan
Study, and Cost of Service Study,
Ͳ Carpinteria Sanitary District (CA) – Sewer
Rate and Fee Study
Ͳ Castaic Lake Water Agency (CA) –
Wholesale Water Rate Study, Drought
Rates, Rate Analysis, and Facility Capacity
Fees
Ͳ Central Basin Municipal Water District (CA)
– Financial Plan
Water Cost of Service Study
City of San Clemente
Ͳ City of Chino (CA) – Water Budget Rate
Design, Financial Plan Study and Cost of
Service and Rate Design
Ͳ City of Chowchilla (CA) – Water and
Wastewater Rate Study
Ͳ Coastside County Water District (CA) –
Water Rate Study
Ͳ Contra Costa Water District (CA) – Financial
Plan Study, Water Rate Study and Drought
Rates Study
Ͳ City of Corona (CA) – Water Budget Rate
Study, Wastewater Capacity Fees Study
Ͳ Cucamonga Valley Water District (CA) –
Financial Plan, Water Conservation Rate
Study, and Drought Rates
Ͳ East Bay Municipal Utility District (CA) –
Water and Wastewater Cost of Service and
Rate Study
Ͳ Eastern Municipal Water District (CA) –
Water Budget Study and Financial Plan
Study
Ͳ East Orange County Water District (CA)Ͳ
Water Budget Study, Sewer Capacity Fees
Study, and Financial Plan Study
Ͳ Elsinore Valley Municipal Water District
(CA) – Financial Model, Drought Rate
Analysis, Water and Recycled Water Rate
Study, Capacity Fee Study, and Wastewater
Rate Study
Ͳ El Toro Water District (CA) – Water Budget
Study and Recycled Water Financial Plan
Study
Ͳ City of Escondido (CA) – Water and
Wastewater Rate Study and Capacity Fees
Study
Ͳ Fallbrook Public Utilities District (CA) –
Water, Wastewater and Recycled Water
Rate Study
Ͳ City of Florence (AZ) – Water and
Wastewater Rate Study
Ͳ City of Gilbert (AZ) – Fire Financial Plan
Ͳ City of Glendora (CA) – Water Budget
Feasibility Study
Ͳ City of Gridley (CA) – Water Rate Study
Ͳ Helix Water District (CA) – Water Rate and
Cost of Service Study
Ͳ HiͲDesert Water District (CA) – Water Rate
Study
Ͳ City of Hollister (CA)ͲSewer Rate and
Impact Fee Study, Water Rates Study, and
Capacity Fee Study
Ͳ City of Huntington Beach (CA)ͲSewer Rate
Study, Water Budget Rate Study, and
Financial Plan Study
Ͳ Imperial County Gateway County Service
Area (CA) – Water and Wastewater Rate
Study
Ͳ Indio Water Authority (CA)ͲUser Fee Study
and Water Rate Study
Ͳ Inland Empire Utilities Agency (CA) –
Conservation Rate Structure Workshop and
Financial Plan Study
Ͳ Inyo County Water Department (CA) –
Water Rate Study
Ͳ Irvine Ranch Water District (CA)Ͳ
Conservation Study
Ͳ Jurupa Community Services District (CA) –
Water Budget Study
Ͳ La Habra Heights County Water District
(CA) – Wheeling Rate Study and Financial
Plan Study
Ͳ La Puente Valley County Water District
(CA) – Water Rate and Fee Study
Ͳ Las Virgenes Municipal Water District (CA)
– Water Budget Rate Study, Water, RW and
WW Financial Plan and Rate Studies,
Capacity Fees Study
Ͳ City of Livermore (CA) – Water Cost of
Service Study
Ͳ City of Livingston (CA)ͲWater Rate Study
Ͳ City of Lomita (CA)ͲWater Rate Workshop
Water Cost of Service Study
City of San Clemente
Ͳ City of Long Beach (CA)ͲWater, Recycled
Water and Wastewater Financial Plan and
Rate Studies
Ͳ Los Alamos Community Services District
(CA) – Water and Wastewater Rate Study
Ͳ Los Angeles Department of Water and
Power (CA)ͲDaily Demand Estimates
Ͳ City of Lynwood (CA)ͲCost Allocation Plan
Ͳ City of Malibu (CA) – Wastewater and
Recycled Water Rate Study
Ͳ Mammoth Community Water District (CA)
– Water Rate Study
Ͳ City of Merced (CA)ͲWater and Sewer Rate
and Impact Fee Study
Ͳ Mesa Consolidated Water District (CA) –
Financial Plan Study, Cost Comparison
Study, Water and Recycled Water Cost of
Service and Rate Design Study
Ͳ Metropolitan Water District of Southern
California (CA) – Drought Allocation Model,
Long Range Financial Plan, and Cost of
Service Evaluation
Ͳ Mill ValleyͲTamalpais Community
Services District (CA) – Financial Plan Study
Ͳ Mojave Water Agency (CA) – Financial Plan
Study, Financial Impact Analysis for Water
Exchange and Leasing Programs and Water
Reliability Rate Development
Ͳ Modesto Irrigation District (CA) –
Stormwater Fee Study
Ͳ Monterey Peninsula Water Management
District (CA)ͲWater Budget Study
Ͳ Municipal Water District of Orange County
(CA)ͲConservation Potential Study and
Rate Study
Ͳ City of Newport Beach (CA) – Water Rate
Study
Ͳ City of Palo Alto (CA) – Water Cost of
Service and Rate Study
Ͳ Pasadena Water and Power (CA)ͲWater
Cost of Service and Rate Design Study
Ͳ Placer County Water Agency (CA) – Cost of
Service, Rate, and Financial Plan Study
Ͳ City of Pomona (CA) – Rate Study
Ͳ City of Port Hueneme (CA)ͲWater and
Solid Waste Rate Study
Ͳ City of Orange (CA) – Water and Sanitation
Rate Study
Ͳ Rancho California Water District (CA) –
Water Budget Rate Study, Water Demand
Offset Fees, Commercial Water Budget
Revision Study, Alternative Water Supply
Feasibility Analysis
Ͳ City of Reno (NV) – Wastewater Rate Study
Ͳ City of Rio Vista (CA)ͲWater and Sewer
Rate and Impact Fee Study
Ͳ Rubidoux Community Services District (CA)
– Rate Advisor
Ͳ Salton Community Services District (CA) –
Sewer Rate Study
Ͳ San Benito County Water District (CA) –
Water Rate Study
Ͳ City of San Clemente (CA) – Water and
Wastewater Rate Study
Ͳ San Diego County Water Authority (CA)Ͳ
Indexing Model and Wholesale Water Rate
Ͳ San Gorgonio Pass Water Agency (CA) –
Long Range Strategic Financial Plan
Ͳ City of San Juan Capistrano (CA) – Water
Rate Study
Ͳ Santa Clara Valley Water District (CA)Ͳ
Project EvaluationͲWater Conservation
Project
Ͳ Santa Clarita Water District (CA) – Retail
Water Rate Study
Ͳ City of Santa Cruz (CA)ͲFinancial Plan,
Water Budget Feasibility Analysis, Cost of
Service and Rate Study, Drought Rate Study,
Capacity Fees Update and Water Demand
Offset Fees Analysis, and Alternative Water
Supply Feasibility Analysis
Ͳ Scotts Valley Water District (CA) – Water
and Recycled Water Rate Study
Water Cost of Service Study
City of San Clemente
Ͳ City of Shasta Lake (CA) – Water Rate Study
and Water and Wastewater Capacity Fee
Study
Ͳ City of Sierra Madre (CA) – Water and
Sewer Rate Study
Ͳ City of Signal Hill (CA) – Water Rate and
Cost of Service Study
Ͳ City of Simi Valley (CA) – Sewer Rate Study
Ͳ Soquel Creek Water District (CA) – Water
Rate Structure Study
Ͳ South Coast Water District (CA) – Water
Budget Assessment
Ͳ South Mesa Water Company (CA) – Rate
Structure and Recycled Water Rate Study
Ͳ City of South Gate (CA)ͲWater Impact Fee
Ͳ Sunnyslope County Water District (CA) –
Water Rates and Capacity Fees
Ͳ Temescal Valley Water District (CA) –
Water and Sewer Rate Study and Capacity
Fee Study
Ͳ Trabuco Canyon Water District (CA) –
Water Rate Study
Ͳ City of Thousand Oaks (CA) – Water and
Wastewater Cost of Service and Financial
Plan Study
Ͳ City of Ventura (CA) – Water and
Wastewater Rate Study
Ͳ City of Vista (CA)ͲSewer Rate and
Connection Fee Study
Ͳ Walnut Valley Water District (CA)ͲWater
Rate Study
Ͳ City of Watsonville (CA) – Utility Enterprise
Rate Study
Ͳ Western Municipal Water District (CA)Ͳ
Financial Plan, Capacity Fees, and Water
Budget Rate Studies
Ͳ Yorba Linda Water District (CA)ͲSewer and
Water Budget Rate Study, Financial Plan
Study, and Cost of Service Rate Study
Ͳ Zone 7 Water Agency (CA) – Cost of Service
Study and Water Rate Study Update
PUBLICATIONS
Ͳ Wittern, M., Gaur, S., “Protecting Against Water Rate Challenges with the Equivalent of Bear Spray,” Journal – American Water Works Association, March 2022, Volume 114, Issue 2 Ͳ Harmon, K., Mukherjee, M., Gaur, S., Atwater D., “Evaluating Water Saving from BudgetͲBased Tiered Rates in Orange County, California,” Water Economics and Policy, 2021, Volume 07, No. 2, 2150007
Ͳ Gaur, S., Smith, V., Kostiuk, K., “Mandates and Messaging: How Californians Responded to the State’s Historic Drought,” Journal – American Water Works Association, March 2019, Volume 111, Number 3.
Ͳ Gaur, S., Magu, D. “California Water Rate Trends: Maintaining Affordable Rates in a Volatile Environment,” Journal – American Water Works Association, September 2017, Volume 109, Number 9.
Ͳ Contributing Author to “M1 Principles of Water Rates, Fees and Charges” 7th Edition, American Water Works Association, 2017.
Ͳ Gaur, S., Giardina, R.D., Kiger, M.H., Zieburtz, W., “Committee Report: Ripples from the San Juan Capistrano Decision,” Journal – American Water Works Association, September 2016, Volume 108, Number 9.
Water Cost of Service Study
City of San Clemente
Ͳ Gaur, S., Alikhan, A., Kostiuk, K. “The Drought is over – Now is the time to develop drought rates,” CSMFO Magazine, July 1, 2016.
Ͳ Gaur, S., Alikhan, A., Crea, J. “Developing Drought Rates: Why Agencies Should Prepare for a NotͲSoͲRainy Day,” January 2016, Volume 108, Number 1.
Ͳ Gaur, S., Isaac, Habib “There's Opportunity in the San Juan Capistrano Rates Decision,” Source CaliforniaͲNevada Section AWWA, Fall 2015, Volume 29, Number 4.
Ͳ Gaur, S., Atwater, D., “California Water Rate Trends,” Journal – American Water Works Association, January 2015, Volume 107, Number 1.
Ͳ Contributing Author to “Water and Wastewater Finance and Pricing: The Changing Landscape,” 4th Edition, 2015, CRC Press, Editor: George Raftelis.
Ͳ Gaur, S., Atwater, D., Cruz, J., “Why do Water Agencies need Reserves?” Journal – American Water Works Association, November 2014, Volume 106, Number 11.
Ͳ Gaur, S., Atwater, D., Lee, J., “Conservation Rates Offer Options,” CA/NV Section of American Water Works Association, Spring 2014, Volume 28, Number 2.
Ͳ Gaur, S., Lim, B., Phan, K., “California Water Rate Trends,” Journal – American Water Works Association, March 2013, Volume 105, Number 3.
Ͳ Contributing Author to “Water Rates, Fees and the Legal Environment,” 2nd Edition, American Water Works Association, 2010 Editor: C.(Kees) W. Corssmit.
Ͳ Hildebrand, M. Gaur, S. and Salt, K. “Water Conservation Made Legal: Water Budgets and California Law,” Journal of American Water Works, 101:4 April 2009, p.85Ͳ89.
Ͳ Gaur, S. “Policy Objectives in Designing Water Rates,” Journal of American Water Works, 99:5 May 2007, p.112Ͳ116.
Ͳ Gaur, S., "Adelman and Morris Factor Analysis of Developing Countries," The Journal of Policy Modeling, Vol. 19, Issue 4, pp. 407Ͳ415, August 1997.
Water Cost of Service Study
City of San Clemente
Resume – Nancy Phan, Principal
TECHNICAL SPECIALTIES
ͲExcelͲbased financial models
ͲCost of service studies
ͲWater and wastewater rate design
ͲTechnical report writing
ͲProposition 218 rates
ͲData analysis
PROFESSIONAL HISTORY
Ͳ Water Resources Economics, LLC, Principal (2023Ͳpresent) Ͳ Raftelis Financial Consultants, Inc., Manager (2022Ͳ2023); Senior Consultant (2020Ͳ2021); Consultant (2018Ͳ2019); Associate Consultant (2016Ͳ2017)
EDUCATION
Ͳ Bachelor of Arts, Business EconomicsͲUniversity of California, Irvine (2015)
PROJECT EXPERIENCE
Ͳ Amador Water Agency (CA) – Water and
Wastewater Cost of Service and Rate Study,
Water Capacity Fees
Ͳ Antelope Valley East Kern Water Agency
(CA) – Water Cost of Service and Rate Study
Update
Ͳ Carpinteria Valley Water District (CA) –
Water Cost of Service and Rate Study,
Water Cost of Service and Rate Study
Update
Ͳ Central Contra Costa Sanitation District
(CA) – Wastewater Cost of Service and Rate
Study Update, Capacity Fee Calculation
Ͳ Coastside County Water District (CA) –
Water Cost of Service and Rate Study and
Updates, Water Shortage Rate Study and
Updates
Ͳ Contra Costa Water District (CA) – Treated
and Untreated Water Cost of Service and
Rate Study
Ͳ City of Corona (CA) – Water Cost of Service
and Rate Study
Ͳ City of Covina (CA) – Water Cost of Service
and Rate Study
Ͳ City of Escondido (CA) – Water Cost of
Service and Rate Study, Wastewater Cost of
Service and Rate Study
Ͳ City of Hayward (CA) – Water Rate Study
and Update, Wastewater Rate Study, Water
and Sewer Connection Fees, Water Drought
Rates
Ͳ King County Wastewater Treatment
Division (WA) – Wastewater Financial
Model and Rate Design
Ͳ City of La Habra (CA) – Water Cost of
Service and Rate Study, Wastewater Cost of
Service and Rate Study
Ͳ City of La Habra Heights (CA) – Water Cost
of Service and Rate Study
Ͳ Madera County (CA) – Groundwater
Sustainability Agency Rate Study,
Groundwater Sustainability Agency Rate
Study Update
Ͳ Marin Municipal Water District (CA) –
Water Cost of Service and Rate Study,
Water Financial Plan Update
Ͳ Montecito Water District (CA) – Water Cost
of Service and Rate Study
Water Cost of Service Study
City of San Clemente
Ͳ City of Monterey Park (CA) – Water Cost of
Service and Rate Study
Ͳ City of Ontario (CA) – Water and Recycled
Water Cost of Service and Rate Study and
Update, Wastewater Cost of Service and
Rate Study and Update
Ͳ City of Oxnard (CA) – Water Cost of Service
and Rate Study
Ͳ City of Palo Alto (CA) – Drought Rate Study
Update, OnͲCall Financial Services
Ͳ City of Pasadena (CA) – Water Cost of
Service and Rate Study
Ͳ City of Pleasanton (CA) – Water, Recycled
Water, and Wastewater Cost of Service and
Rate Study and Update
Ͳ City of Pomona (CA) – Water Cost of
Service and Rate Study
Ͳ City of Port Hueneme (CA) – Water Cost of
Service and Rate Study
Ͳ Rainbow Municipal Water District (CA) –
Wastewater Cost of Service and Rate Study
Ͳ City of Redlands (CA) – Water, Wastewater,
and NonͲPotable Water Cost of Service and
Rate Study
Ͳ City of Reno (NV) – Stormwater Financial
Plan and Rate Design
Ͳ City of San Gabriel (CA) – Wastewater
Property Tax Roll, Wastewater Property Tax
Roll Update
Ͳ City of Santa Cruz (CA) – Water Cost of
Service and Rate Study, Connection Fee
Study, Wheeling Charge Calculation
Ͳ City of Santa Fe Springs (CA) – Water Cost
of Service and Rate Study
Ͳ Seattle Public Utilities (WA) – Drainage and
Wastewater Financial Model, Water
Financial Model, Solid Waste Financial
Model
Ͳ SelmaͲKingsburgͲFowler County Sanitation
District (CA) – Wastewater Cost of Service
and Rate Study, Wastewater Cost of Service
and Rate Study Update
Ͳ Soquel Creek Water District (CA) –
Alternative Water Rate Design Evaluation
Ͳ City of South Pasadena (CA) – Water Cost
of Service and Rate Study
Ͳ Stanford University (CA) – Water and Sewer
Rate Analysis, Comprehensive
Benchmarking Study
Ͳ City of Tacoma (WA) – Wastewater Rate
Study, Solid Waste Rate Study, Solid Waste
Rate Study
Ͳ City of Torrance (CA) – Water Cost of
Service and Rate Study
Ͳ Vallejo Flood and Wastewater District (CA)
– Wastewater Cost of Service and Rate
Study Update, Property Tax Roll Update
Ͳ Valley Water / Santa Clarita Valley Water
District (CA) – Recycled Water Cost
Allocation Evaluation
Ͳ County of Ventura (CA) – Water Rate
Studies (for four Waterworks Districts)
Ͳ Walnut Valley Water District (CA) –
Domestic and Recycled Water Cost of
Service and Rate Study
Ͳ West Basin Municipal Water District (CA) –
Wholesale Drinking Water Rate Analysis
Ͳ Zone 7 Water Agency (CA) – Wholesale
Treated Rate Study and Updates, Wholesale
Untreated Rate Study and Updates
PUBLICATIONS
Ͳ Armstrong, J., Harmon, K., Phan, N., “The Power of Data to Improve Water Use Efficiency and Conservation,” Journal AWWA, June 2017, Volume 109, No. 6.
Water Cost of Service Study
City of San Clemente
Page
29
Water Resources Economics
Resume – Hannah Phan, Principal
TECHNICAL SPECIALTIES
ͲExcelͲbased financial models
ͲCost of service rate studies
ͲLongͲterm financial plan and analysis
ͲCapacity fee studies
ͲRate structure designs
ͲProposition 218
PROFESSIONAL HISTORY
Ͳ Water Resources Economics, LLC, Principal Consultant (2024Ͳpresent) Ͳ Raftelis Financial Consultants, Inc., Manager (2017Ͳ2022); Senior Consultant (2009Ͳ2016); Consultant (2007Ͳ2009)
EDUCATION
Ͳ Master of Business Administration, Finance – California State University, Los Angeles (2007) Ͳ Bachelor of Science, International Business – California State University, Los Angeles (2006)
PROJECT EXPERIENCE
Ͳ City Of Anaheim (CA) – Water Cost of
Service and Rate Study
Ͳ City of Banning (CA) – Recycled Water
Revenue Program
Ͳ BeaumontͲCherry Valley Water District
(CA) – Water Rate and Connection Fee
Study
Ͳ City of Beverly Hills (CA) – Wastewater Cost
of Service and Rate Study
Ͳ City of Brentwood (CA) – Water and
Wastewater Rate Study
Ͳ Calleguas Municipal Water District (CA) –
Water Cost of Service and Rate Study
Ͳ Casitas Municipal Water District (CA) –
Water Cost of Service and Rate Study
Ͳ Castaic Lake Water Agency (CA) – Water
Cost of Service and Rate Study
Ͳ Carpinteria Sanitary District (CA) –
Wastewater Cost of Service and Rate Study
Ͳ Central Contra Costa Sanitation District
(CA) – Wastewater Cost of Service and Rate
Study
Ͳ City of Chino (CA) – Water Cost of Service
and Rate Study
Ͳ Clark County Water Reclamation District
(NV) – Wastewater Cost of Service and Rate
Study
Ͳ Contra Costa Water District (CA) – Treated
and Untreated Water Cost of Service and
Rate Study
Ͳ East Bay Municipal Utility District (CA) –
Water and Wastewater Cost of Service and
Rate Study & Capacity Fee Study
Ͳ City of Escondido (CA) – Water Cost of
Service and Rate Study, Wastewater Cost of
Service and Rate Study
Ͳ Goleta Water District (CA) – Water and
Wastewater Rates and Connection Fee
Study
Ͳ Goleta West Sanitary District (CA)Ͳ
Wastewater Cost of Service and Rate Study
Ͳ Jurupa Community Services District (CA) –
Water and Wastewater Cost of Service and
Rate Study
Ͳ Kinneloa Irrigation District (CA) – Water
Rate Study
Ͳ City of Livermore (CA) – Water Cost of
Service and Rate Study
Water Cost of Service Study
City of San Clemente
Page
30
Water Resources Economics
Ͳ City of Livingston (CA) – Water,
Wastewater and Solid Waste Rate Study
Ͳ Los Angeles Department of Water and
Power (CA) – Water Rate Study and
Wheeling Charge Review
Ͳ Marin Municipal Water District (CA) –
Water Cost of Service and Rate Study,
Water Financial Plan Update
Ͳ Napa Sanitation District (CA) – Wastewater
Cost of Service and Rate Study
Ͳ City of North Las Vegas (NV) – Water and
Wastewater Rate Study
Ͳ Olivenhain Municipal District (CA) – Water,
Recycled Water, and Wastewater Rate
Study
Ͳ City of Ontario (CA) – Water, Wastewater,
and Solid Waste Cost of Service and Rate
Study
Ͳ Palmdale Water District (CA) – Water
Budget Rate Study
Ͳ City of Palo Alto (CA) – Water Cost of
Service and Rate Study
Ͳ City of Pleasanton (CA) – Water, Recycled
Water, and Wastewater Cost of Service and
Rate Study
Ͳ City of Redlands (CA) – Water Cost of
Service and Rate Study and Impact Fee
Study
Ͳ City of San Diego (CA) – Wastewater Rate
Study and Recycled Water Pricing Study
Ͳ City of Santa Barbara (CA) – Water,
Wastewater, and Recycled Water Cost of
Service and Rate Study
Ͳ City of South Pasadena (CA)Ͳ Water Cost of
Service and Rate Study and Water Budget
Rate Study
Ͳ City of Tacoma (WA) – Water, Wastewater,
and Solid Waste Cost of Service and Rate
Study
Ͳ Union Sanitary District (CA) – Wastewater
Cost of Service and Rate Study
Ͳ City of Vallejo (CA) – Water Cost of Service
and Rate Study
Ͳ Vallejo Flood and Wastewater District (CA)
– Wastewater Cost of Service and Rate
Study, Property Tax Roll Update,
Wastewater Cost of Service and Rate Study
Update
Ͳ City of Ventura (CA) – Water, Wastewater,
and Recycled Water Cost of Service and
Rate Study
Ͳ Ventura County Public Works Agency (CA)
– Water Cost of Service and Rate Study
Ͳ Zone 7 Water Agency (CA) – Cost of Service
Study and Water Rate Study Update
Water Cost of Service Study
City of San Clemente
Page
31
Water Resources Economics
ResumeͲCharles Diamond, Principal
TECHNICAL SPECIALTIES
ͲLongͲterm financial plans
ͲCost of service studies
ͲRate design
ͲCapacity fee studies
ͲExcelͲbased financial models
ͲData analysis
PROFESSIONAL HISTORY
Ͳ Water Resources Economics, LLC, Principal (2023Ͳpresent) Ͳ Raftelis Financial Consultants, Inc., Manager (2023); Senior Consultant (2021Ͳ2022); Consultant (2019Ͳ2020); Associate Consultant (2017Ͳ2018)
Ͳ The Nature Conservancy, Science & Stewardship Practitioner (2013Ͳ2015)
EDUCATION
Ͳ Master of Environmental Science and Management – Water Resources Management, Bren School of Environmental Science & Management – University of California, Santa Barbara (2017) Ͳ Bachelor of Science, Environmental Economics and PolicyͲUniversity of California, Berkeley (2013)
PROJECT EXPERIENCE
Ͳ Alameda County Water District (CA)Ͳ
Financial Plan Study, Conservation Tiered
Rate Feasibility Analysis,
Ͳ Antelope ValleyͲEast Kern Water Agency
(CA) – Annual Water Rate Update Studies
Ͳ Antelope Valley State Water Contractors
Association (CA) – Replacement Water
Assessment Study
Ͳ Borrego Water District (CA) – Water Rate
Affordability Assessment
Ͳ City of Brentwood (CA) – Water and
Wastewater Rate Study
Ͳ City of Burbank (CA)ͲWater Rate Study
Ͳ Cucamonga Valley Water District (CA) –
Financial Plan, Water Conservation Rate
Study, and Drought Rates
Ͳ City of Dixon (CA) – Water Rate Study
Ͳ City of El Monte (CA) – Water Rate Study,
Water Cost Allocation Plan Study
Ͳ Goleta Water District (CA) – Water Rate
Study
Ͳ City of Huntington Beach (CA) – Water Rate
Study
Ͳ Inyo County Water Department (CA) –
Water Rate Study
Ͳ Jurupa Community Services District (CA) –
Inland Empire Brine Line Rate Study
Ͳ La Cañada Irrigation District (CA) (CA) –
Water Rate Study
Ͳ Las Virgenes Municipal Water District (CA)
–Water, RW, and WW Financial Plan and
Rate Studies
Ͳ City of Lincoln (CA) – Water Rate Study
Ͳ City of Long Beach (CA)ͲWater, Recycled
Water, and Wastewater Financial Plan,
Water and Wastewater Rate Survey
Ͳ Marin Municipal Water District (CA) –
Miscellaneous Fee Study
Ͳ Mojave Water Agency (CA) – Financial
Impact Analysis for Water Exchange and
Leasing Programs
Ͳ Municipal Water District of Orange County
(CA) – Core Service Charge Allocation Study
Ͳ National Water and Sewerage Authority of
Grenada (Eastern Caribbean) – Water and
Sewer Rate Study
Water Cost of Service Study
City of San Clemente
Page
32
Water Resources Economics
Ͳ Olivenhain Municipal Water District (CA) –
Water Rate Study, Water PassͲThrough Rate
Annual Updates
Ͳ Placer County Water Agency (CA) – Cost of
Service, Rate, and Financial Plan Study,
Water Connection Charge Study
Ͳ Rancho California Water District (CA) –
Water Capacity Fee Study, Water Rate
Study
Ͳ Sacramento Suburban Water District (CA) –
Water Rate Study
Ͳ San Francisco Public Utilities Commission
(CA) – Water and Wastewater Rate Study
Ͳ Santa Ana Watershed Project Authority
(CA) – Inland Empire Brine Line Rate Model,
Inland Empire Brine Line Reserve Policy
Study
Ͳ Santa Clarita Valley Water Agency (CA) –
Water Capacity Fee Study
Ͳ Santa Rosa Plain, Sonoma Valley, &
Petaluma Valley Groundwater
Sustainability Agencies (CA)ͲGroundwater
Sustainability Agency Fee Analysis and Rate
Setting Services
Ͳ Scotts Valley Water District (CA) – Water
and Recycled Water Rate Study
Ͳ South Mesa Water Company (CA) – Water
Rate Study and Connection Fee Update
Ͳ City of Simi Valley/Ventura County
Waterworks District No. 8 (CA)ͲWater
Rate Study
Ͳ City of Sonoma (CA) – Water Rate Study
Ͳ City of Thousand Oaks (CA) – Water and
Wastewater Cost of Service and Financial
Plan Studies
Ͳ City of Ventura (CA) – Water and
Wastewater Rate Study, Water and
Wastewater Annual Financial Plan Updates,
Water Net Zero Fee Study
Ͳ Victor Valley Wastewater Reclamation
Authority (CA)ͲSewer Rate and Connection
Fee Study
Ͳ City of Watsonville (CA) – Utility Enterprise
Rate Study