Agenda packet — Seaside City Council, September 7, 2023 (part 1 of 2)

A G E N D A

CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/SUCCESSOR 440 HARCOURT AVE (COUNCIL CHAMBER) AGENCY TO THE Thursday, September 7, 2023
REDEVELOPMENT AGENCY 5:00 PM
___________________________________________________________________________________ NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Seaside utilizes Zoom tele-conferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of public through this means is at their own risk. ___________________________________________________________________________________ ___________________________________________________________________________________

VIRTUAL PUBLIC PARTICIPATION INSTRUCTIONS

1. To view this meeting: Please click on the following link to the City of Seaside YouTube Channel: https://www.youtube.com/c/CityofSeasideCalifornia

2. To participate in this meeting: Using the Zoom application on your smart phone, laptop, tablet or desktop and click on this link: https://ci-seaside-ca-us.zoom.us/j/81936832059 WEBINAR ID: 819 3683 2059

3. To participate by phone: Please call (669) 900-9128
Enter the meeting ID 819 3683 2059 when prompted. There is no participate code – press the pound sign # after the recording prompts you.

4. To make public comment, the following options are available:

Before the Meeting via Email: Written comments can be emailed to [email protected] Include the following subject line: “Public Comment Item #___” (insert the agenda item number relevant to your comment). Written comments must be received by 2:00 p.m. on the day of the meeting.

During the Meeting via Oral Comments: When the Chair calls for public comment, attendees can queue to speak with the “Raise Hand” feature. On the Zoom application, click the “Raise Hand” button. On the phone, press *9.

IN PERSON PARTICIPATION INSTRUCTIONS
Members of the public participating in person and wishing to address the City Council may approach the podium when the Chair calls for public comment.

Packet Page 1
City Council REGULAR Meeting September 7, 2023 5:00 PM Agenda Page 2

1. CALL TO ORDER

2. ROLL CALL – ESTABLISHMENT OF QUORUM
Ian N. Oglesby
David R. Pacheco
Alexis Garcia-Arrazola
Rita Burks
Alex Miller
Mayor/Chair
Mayor Pro Tem/Vice Chair
Council/Agency Member
Council/Agency Member
Council/Agency Member

3. INVOCATION AND PLEDGE OF ALLEGIANCE

4. REVIEW OF AGENDA
If there are any items that arose after the 72-hour posting deadline, this is the point in the meeting where a vote may be taken to add the item to the agenda. (A 2/3-majority vote is required).

5. PUBLIC COMMENT
Members of the public wishing to address the City Council on matters within the jurisdiction of the City of Seaside, but not on this agenda, may do so during the Public Comment period for up to three (3) minutes. Public Comments for "Presentations" on this agenda are also taken at this time; comments on specific agenda items are heard under that item. For the public record, please state your name.

6. PUBLIC AGENCY COMMUNICATIONS
This is a time specifically set aside for representatives of public agencies to make brief comments of general interest to the City Council and the community.

7. PRESENTATIONS
A. AUGUST 2023 HOUSE OF THE MONTH AWARD (NEIGHBORHOOD

IMPROVEMENT COMMISSION)
B. UPCOMING CITYWIDE EVENTS AND COMMUNITY ANNOUNCEMENTS (RECREATION DIRECTOR, DAN MEEWIS)

8. CONSENT AGENDA
A. APPROVE AND FILE CITY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments Packet Page 2
City Council REGULAR Meeting September 7, 2023 5:00 PM Agenda Page 3 made during the period of June 3, 2023 through July 14, 2023, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period ending June 9, 2023, June 23, 2023 and July 7, 2023. Total Accounts Payable and Payroll for the above referenced period is $9,971,454.19.

B. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of June 3, 2023 through July 14, 2023, including the payroll and benefits checks, direct deposits and wired payments related to the pay period ending June 9, 2023, June 23, 2023, and July 7, 2023. Total Accounts Payable and Payroll for the above referenced period is $150,571.09.

C. APPROVE A FEE WAIVER REQUEST FROM PALENKE ARTS ORGANIZATION TO USE LAGUNA GRANDE HALL AND KITCHEN TO HOLD THEIR "DIA DE LOS MUERTOS" EVENT ON NOVEMBER 2, 2023
RECOMMENDATION: Approve the fee waiver request from Palenke Arts for the use of Laguna Grande Hall and kitchen to hold their event "Dia de los Muertos Celebration (Day of the Dead)," in the amount of $421.88, the Organization to provide the City with the non-refundable portion of the deposit of $98.25, and provide the City with their insurance.

D. ADOPT A RESOLUTION TO APPROVE THE RECOMMENDED SELECTION

AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE PURCHASE OF

TWO FIRE DEPARTMENT COMMAND VEHICLES AND ONE DRONE

VEHICLE, AND OUTFIT ALL THREE WITH EMERGENCY RESPONSE
EQUIPMENT, IN AN AMOUNT NOT TO EXCEED $340,000.00
RECOMMENDATION: Adopt a resolution to purchase and outfit two fire department command vehicles and one drone vehicle.

E. ADOPT A RESOLUTION AUTHORIZING A PROFESSIONAL SERVICES

AGREEMENT WITH WILLDAN FINANCIAL SERVICES TO COMPLETE THE

WATER RATE AND CAPACITY FEE STUDIES FOR SEASIDE MUNICIPAL WATER SYSTEM FOR AN AMOUNT NOT TO EXCEED $41,350.00
RECOMMENDATION: Adopt a resolution authorizing a professional services agreement with Willdan Financial Services to complete the Water Rate and Capacity Fee Studies for Seaside Municipal Water System for an amount not to exceed $41,350.00.

F. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SEASIDE

AND HAMILTON, ELLIS, AND MARTIN PLAZA TO REIMBURSE THE CITY

FOR PROVIDING AFTER SCHOOL RECREATIONAL PROGRAMMING AT THE

HEM PLAZA
RECOMMENDATION: Adopt the resolution and authorize the City Manager to execute the Memorandum of Understanding to memorialize the agreement between the City of Seaside and the Hamilton, Ellis, and Martin Plaza.

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City Council REGULAR Meeting September 7, 2023 5:00 PM Agenda Page 4 G. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

CONTRACTS FOR THE RECIPIENTS OF THE COMMUNITY SOCIAL

SERVICES GRANT PROGRAM
RECOMMENDATION: Adopt the resolution authorizing the City Manager to execute contracts for the community social services grant program.

H. ADOPT A RESOLUTION AUTHORIZING THE MODIFICATION OF THE

POSITION CONTROL LIST TO ADD ONE SENIOR PLANNER AND DELETE

ONE ASSOCIATE PLANNER POSITION IN THE PLANNING DIVISION RECOMMENDATION: Adopt a resolution amending the Fiscal Year 2023-2024 Budget, and modifying the Position Control List to reflect the organizational changes in the Planning Division to add one Senior Planner and delete on Associate Planner.

I. ADOPT A RESOLUTION AUTHORIZING THE MODIFICATION OF THE

POSITION CONTROL LIST TO ADD ONE PUBLIC AFFAIRS OFFICER/CITY

CLERK AND DELETE ONE CITY CLERK POSITION
RECOMMENDATION: Adopt a resolution amending the Fiscal Year 2023-2024 Budget, and modifying the Position Control List to reflect the organizational changes in the City Clerk Department to add one Public Affairs Officer/City Clerk and delete one City Clerk position.

J. ADOPT A RESOLUTION AUTHORIZING A PROFESSIONAL SERVICE

AGREEMENT WITH SCHAAF & WHEELER TO DESIGN THE CONTINGENCY

INTERTIE FROM SEASIDE MUNICIPAL WATER SYSTEM TO MARINA
COAST WATER DISTRICT IN AN AMOUNT NOT TO EXCEED $46,800.00 RECOMMENDATION: Adopt a resolution authorizing a professional services agreement with Schaaf & Wheeler to provide design services for the Seaside Municipal Water System (SMWS) to Marina Coast Water District (MCWD) Intertie Project for an amount not to exceed $46,800.00.

K. REVIEW AND TAKE ACTION ON TRAFFIC ADVISORY COMMITTEE

RECOMMENDATIONS TO APPROVE THE INSTALLATION OF GREEN CURB

ON FREMONT BOULEVARD AND REMOVAL OF YELLOW CURB ON

PHOENIX AVENUE
RECOMMENDATION: The Traffic Advisory Committee (TAC) recommends approving: 1. removal of a 2-hour parking sign, installation of green curb in front of 1276 Fremont Boulevard, and waiver of the fee for the installation of the green curb; and, 2. removal of yellow curb on Phoenix Avenue at Fremont Boulevard.

L. ADOPT A RESOLUTION AMENDING THE FISCAL YEAR 2023-24 BUDGET TO APPROPRIATE $80,000 FROM THE MERGED HOUSING FUND TO THE

ACCESSORY DWELLING UNIT (ADU) LOAN PROGRAM
RECOMMENDATION: Adopt a resolution amending the fiscal year 2023-24 budget to appropriate $80,000 from the Merged Housing fund to the ADU Loan Program.

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City Council REGULAR Meeting September 7, 2023 5:00 PM Agenda Page 5 M. ADOPT A RESOLUTION FOR DESIGNATION OF VOTING DELEGATES AND

ALTERNATES FOR THE LEAGUE OF CALIFORNIA CITIES ANNUAL
CONFERENCE AND EXPO BEING HELD SEPTEMBER 20-22, 2023, IN

SACRAMENTO, CALIFORNIA
RECOMMENDATION: Appoint Mayor Ian N. Oglesby and an alternate as the voting delegates at the conference.

9. PUBLIC HEARING
A. APPEAL OF PLANNING COMMISSION APPROVAL OF AN ARCHITECTURAL REVIEW (AR-23-11) FOR A SINGLE-FAMILY DWELLING LOCATED AT 7 HARROW COURT IN THE SINGLE-FAMILY RESIDENTIAL (RS-8) ZONING DISTRICT. THIS ITEM IS CATEGORICALLY EXEMPT (CLASS 3) PURSUANT TO SECTION 15303 OF THE CEQA GUIDELINES (DE NOVO HEARING) RECOMMENDATION: Staff's recommendation is to uphold the Planning Commission's approval of AR-23-11 and deny the Appeal.

B. ADOPT A RESOLUTION APPROVING THE CONSOLIDATED ANNUAL

PERFORMANCE AND EVALUATION REPORT FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEAR 2022-2023 RECOMMENDATION: Adopt a Resolution to:

1. Approve the FY2022-23 CAPER for the CDBG program; and

2. Authorize the City Manager or designee to submit the FY2022-23 CAPER to the U.S. Department of Housing and Urban Development.

10. BUSINESS ITEMS
A. APPROVE THE SEASIDE STARS AD-HOC COMMITTEE

RECOMMENDATIONS, AUTHORIZE THE CITY MANAGER TO EXECUTE THE CONTRACTS WITH FMG CUSTOM CONCRETE, AND AMEND THE 2023- 2024 FISCAL YEAR BUDGET APPROPRIATING $58,784.00 FROM THE GENERAL FUND.

RECOMMENDATION: Review and approve the Seaside Stars Ad-Hoc Committee recommendations for the 2023 recipients of the stars, policy updates, and staff recommendations for design, installation, authorize the City Manager to execute the contracts with FMG Custom Concrete, and amend the 2023-2024 fiscal year budget.

B. DISCUSS CITY POLICY AND/OR PROCESS FOR THE USE OF STAFF TIME

AND RESOURCES AND/OR USE OF CITY RESOURCES AND FACILITIES BY

INDIVIDUAL COUNCIL MEMBERS AT INDIVIDUAL COUNCIL MEMBER

FORUMS SUCH AS TOWN HALLS, LISTENING SESSIONS, AND

COMMUNITY MEETINGS
RECOMMENDATION: Provide Council direction on City policy and/or procedure to Packet Page 5
City Council REGULAR Meeting September 7, 2023 5:00 PM Agenda Page 6 request use of City facilities, resources and/or staff for individual council member forums such as town halls, listening sessions, and community meetings.

11. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
B. FOLLOW UP ON PREVIOUS REQUESTS

1. Requested staff to provide an update and overview of City ordinances related to enforcement of parking and placement of recreational vehicles and/or other items on public and private property such as driveways (Pacheco)

12. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR

COMMENTS AND REPORTS ON COMMITTEE ASSIGNMENTS
This is a time specifically set aside for members of the City Council, the City Manager and City Attorney to make brief comments of general interest to the community and report on committee assignments.

13. CLOSED SESSION
Pursuant to Government Code Section 54956 et seq., the City Council and Successor Agency to Redevelopment Agency may adjourn to a Closed Session to consider specific matters dealing with litigation, certain personnel matters, property negotiations or to confer with the City Attorney. Public comments on these items are taken after being read by the City Attorney. For the public record, please state your name.

A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
Property: An approximately 5-acre site of the property commonly referred to as Main Gate (APN 031-151-013) generally located in the north-east corner bounded by Divarty and Second Avenue
Agency Negotiator: City Manager, et al.

Negotiating Parties: State of California Judicial Council and City of Seaside Under Negotiation: Price, terms of payment or both
B. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9
Potential Litigation (2 MATTERS)

14. ADJOURNMENT
Next Regularly Scheduled Meeting:

September 21, 2023
5:00 p.m.

The City of Seaside is committed to providing accessible facilities and accommodating people with Packet Page 6
City Council REGULAR Meeting September 7, 2023 5:00 PM Agenda Page 7 disabilities in all of its services programs and activities. If special considerations are needed by any person to fully participate in this meeting, contact the City Clerk at 899-6707 no fewer than two business days prior to the meeting to allow reasonable arrangements. Agendas are posted at:
http://www.ci.seaside.ca.us/129/City-Council-Committee-Agendas Agenda-related writings or documents provided during public meetings are available for public inspection during the meeting or from the office of the City Clerk. This agenda is posted in compliance with California Governor Newsom's Executive Orders N-29-20 and N-33-20.

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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.A.

TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Loreene Bermudez-Onate, Accountant II
DATE: September 7, 2023
SUBJECT: APPROVE AND FILE CITY CHECKS

RECOMMENDATION
Approve and file the accounts payable and wired payments made during the period of June 3, 2023 through July 14, 2023, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period ending June 9, 2023, June 23, 2023 and July 7, 2023. Total Accounts Payable and Payroll for the above referenced period is $9,971,454.19.

BACKGROUND
In accordance with Government Code Section 37208, at each City Council meeting, the Council is provided a listing of the payroll and general checks issued since the last report so that the checks can be inspected and confirmed. Each purchase has been reviewed and approved by the department making the purchase at the time of procurement. The invoices have been reviewed by the Finance Department prior to payment to ensure that they conform to the approved budget.

Therefore, in accordance with Government Code Section 37208, the above referenced and linked list of checks conforms to the approved budget and has been paid. These checks are submitted to the City Council for inspection and confirmation.

A description of the checks and wires exceeding $10,000.00 are as follows:
• $36,515.13 to 101 Builders, Inc. for Prof. Services for upgrades to the Fire Station through May 3, 2023.
• $10,304.18 to 36 North Property Management for United Way rental assistance for 1 tenant for April-August 2023.
• $10,022.12 to Bound Tree Medical, LLC for The purchase of (1) advanced Packet Page 8

Item No. 8.A. Page 2 of 5
manikin for EMS Training.
• $26,808.02 to Bureau Veritas Technical Assessments LLC for Prof. Plan review services for FYE 2024 facilities condition assessments. • $22,200.00 to Burke, Williams & Sorensen, LLP for Prof. services for labor relations and employment law for the periods of February-May 2023. • $3,348,324.00 to California JPIA for Fiscal year 2023-24 annual worker's compensation contribution/liability program.
• $28,929.12 to California-American Water for Water consumption for multiple City of Seaside service addresses. Billing period of 4/21/23-5/23/23. Service addresses include city buildings, parks, fire hydrants, irrigation stations, and city affordable housing.
• $11,525.87 to Cellebrite Inc. for Annual subscription for Cloud Full Analyzer for the period of 6/12/23-6/11/24.
• $14,849.81 to Coastal Fabrication Company, Inc. for Fabrication of metal railing for the new City Hall modular building.
• $25,000.00 to Community Partnership for Youth for Community social services grant reimbursement request for the period June 1, 2023 through August 31, 2023.
• $10,453.52 to Compumeric Engineering, Inc. for Equipment purchase:
trash/recycle receptacles, laser cut door flaps, zinc primer/anti-graffiti clear coat, and City logos.
• $10,044.21 to Conservation Technix Inc. for Prof. services for the parks & recreation master plan for the period of May 2023.
• $12,976.16 to Department Conservation for Prof. Services for strong motion instrumentation & seismic hazard mapping fee for FY 2018-19, FY 2019-20, FY 2021-22, and Q1 & Q2 for FY 2022-23.
• $15,600.00 to Ellis Investigations Law Corporation for Prof. investigative services for the period of March 3, 2023.
• $173,330.59 to Granite Rock Company for Construction services for the Pavement Rehabilitation Project through April 30, 2023. • $173,881.59 to Granite Rock Company for Construction services for Cutino Park Improvement Part 2, Phase 1 through May 31, 2023.
• $119,742.28 to Granite Rock Company for Construction services for the Pavement Rehabilitation Project through May 31, 2023.
• $19,494.00 to Hamilton, Ellis & Martin Plaza for United Way rental assistance for 1 tenant for January 2022 through June 2023.
• $12,012.00 to Hope Services for Maintenance services for the period of May 2023.
• $42,130.30 to L.N. Curtis & Sons for Purchase of specialized equipment for the Fire Department.
• $240,715.68 to Marina Coast Water District for Recycled water meter services for the period of 4/28/23-5/31/23.
• $18,673.38 to Monterey Co. Convention & Visitor's Bureau for TID (Tourism Improvement District) remittance for the reporting period of April 2023 for the Packet Page 9

Item No. 8.A. Page 3 of 5
13 Seaside motels/hotels.
• $18,759.13 to Monterey One Water for SCSD prof. services for Lift Station Maintenance during October-December 2022.
• $181,095.67 to Monterey Peninsula Engineering for Prof. services for Ellis Park Improvement project through March 31, 2023; FYE 2023 Emergency Storm Response.
• $127,530.85 to Monterey Peninsula Engineering for SCSD Prof. Services for Fremont, Broadway, Ortiz sewer upgrade through March 31, 2023. • $128,962.50 to Monterey Peninsula Engineering for Prof. services for the Del Monte Manor LID Project through May 31, 2023.
• $15,535.93 to Municipal Emergency Services, Inc. for Purchase of replacement turnouts for the Fire Department personnel.
• $10,948.41 to One Workplace L. Ferrari, LLC for Furnishings for new City Hall Staff trailer.
• $50,000.00 to Palenke Arts for Organizational support for Arts center for FY 2022-23 quarters 1 & 2.
• $24,016.67 to Parametrix, Inc. for Professional evaluation services for traffic calming plan for mile-long Hilby Avenue corridor through April 29, 2023; On-call transportation planning services through April 29, 2023. • $47,672.42 to PG&E for Collective accts for street lights, highway lighting, park lights, and city office buildings. Service for the statement period of May 2023. • $13,228.12 to Raimi & Associates, Inc. for Prof. services for the City's 6th Cycle Housing Element for the period of March 1, 2023 through April 30, 2023. • $14,850.00 to Randazzo Enterprises Inc for Construction services for the demolition and removal of the existing slabs and foundations located at 1561/1569/1571 Del Monte Blvd.
• $15,117.36 to Ross Recreation Equipment Inc for Purchase of picnic tables & benches for Pachetti Dog Park.
• $23,087.50 to Schaaf & Wheeler, Consulting Civil Engineer for Professional engineering support services through May 2023; Watermaster Plan project services through May 2023; Stter Street sewer main relocation project services through May 2023.
• $20,260.40 to Sturdy Oil Company for 1,508 gallons of regular gas (ethanol) and 675 gallons of clear diesel delivered to the public works department on 5/17/23; 2,003 gallons of regular gas (ethanol) and 573 gallons of clear diesel delivered to the public works department on 5/31/23.
• $128,517.80 to The Ford Store Morgan Hill, Inc. for Purchase of (2) 2022 Ford F250SD XL trucks. • $25,000.00 to The Village Project, Inc. for Community social services grant reimbursement request for the period June 1, 2023 through August 31, 2023. • $10,000.00 to Tope's Tree Service, Inc. for Tree pruning services for the Laguna Grande Park.
• $46,274.84 to Tracnet for Annual maintenance fees for the period of 7/1/23- 6/30/24.

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Item No. 8.A. Page 4 of 5
• $10,715.00 to Transportation Agency for Monterey County for FY 2023-24 contribution for congestion management and traffic monitoring. • $54,576.00 to Tyler Technologies, Inc. for Annual maintenance fees for the period of 7/1/23-6/30/24.
• $43,344.82 to U.S. Bank-Calcard for City of Seaside purchase card transactions for the billing period of April 2023.
• $34,333.28 to Vista Environmental Consulting, Inc. for Campus Town Hazardous Materials Removal services for the period of May 2023.
• $32,525.74 to Wallace Group for Cutino Park Improvement services (Part 2, Phase 1) for the period of April 2023; April 2023 services for Campus Town Water Augmentation Study; April 2023 services for the Fire Station Upgrade; April 2023 services for Del Monte Manor Park Sewer Upgrades; April 2023 Bike Safe Strom Grates services; April 2023 West End Sand City Sewer Inspection services.
• $26,695.37 to Wallace Group for Cutino & Ellis Park Improvement services (Part 2, Phase 1) for the period of May 2023; May 2023 services for Campus Town Water Augmentation Study; May 2023 services for the Fire Station Upgrade; May 2023 services for Del Monte Manor Park Sewer Upgrades; April 2023 services for American Tire Development Review; April 2023 services for American Legion Plan Review.
• $29,581.00 to Whitson Engineers for May 2023 payment for: Professional services for American Legion plan review; Cutino Park Improvements; Del Monte Manor LID Project; Fernando Park Playground Improvements; LincolnCunningham & Havanna-Soliz Parks Review; 7th Avenue City Row project; Fremont Center Median Landscape Design; Police Dept Parking Lot Improvement services; Yosemite/San Pablo Storm Drain services.

The Net Payroll and Payroll benefits total was $2,949,681.54.

The remaining checks, totaling $1,505,611.88, include payments to vendors for operating expenditures.

The check report is available on the City's website here:
https://www.ci.seaside.ca.us/194/Check-Draft-Register

FISCAL IMPACT
There are no additional fiscal impacts.

ATTACHMENTS
None
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Item No. 8.A. Page 5 of 5
Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.B.

TO: Successor Agency to the Redevelopment Agency of the City of Seaside FROM: Jaime M. Fontes, City Manager
BY: Loreene Bermudez-Onate, Accountant II
DATE: September 7, 2023
SUBJECT: APPROVE AND FILE SUCCESSOR AGENCY CHECKS

RECOMMENDATION
Approve and file the accounts payable and wired payments made during the period of June 3, 2023 through July 14, 2023, including the payroll and benefits checks, direct deposits and wired payments related to the pay period ending June 9, 2023, June 23, 2023, and July 7, 2023. Total Accounts Payable and Payroll for the above referenced period is $150,571.09.

BACKGROUND
In accordance with Government Code Section 37208, at each City Council meeting the Council is provided a listing of the payroll and general checks issued since the last report so that it can inspect and confirm these checks. Each purchase has been reviewed and approved by the department making the purchase at the time of procurement. The invoice has been reviewed by the Finance Department prior to payment to ensure that it conforms to the approved budget.

Therefore, in accordance with Government Code Section 37208, the above referenced, and linked list of checks conforms to the approved budget and has been paid. These checks are submitted to the City Council for inspection and confirmation.

A description of the checks and wires exceeding $10,000 are as follows:
• $150,172.98 to U.S. Bank St. Paul for Debt service payment for the Successor Agency to the Redevelopment Agency of the City of Seaside 2014 Tax Allocation Bond.

The Checks report is available on the City's website here:

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Item No. 8.B. Page 2 of 2
https://www.ci.seaside.ca.us/194/Check-Draft-Register

FISCAL IMPACT
There are no additional fiscal impacts.

ATTACHMENTS
None

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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.C.

TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Dan Meewis, Recreation Director
DATE: September 7, 2023
SUBJECT: APPROVE A FEE WAIVER REQUEST FROM PALENKE ARTS

ORGANIZATION TO USE LAGUNA GRANDE HALL AND KITCHEN
TO HOLD THEIR "DIA DE LOS MUERTOS" EVENT ON NOVEMBER
2, 2023

RECOMMENDATION
Approve the fee waiver request from Palenke Arts for the use of Laguna Grande Hall and kitchen to hold their event "Dia de los Muertos Celebration (Day of the Dead)," in the amount of $421.88, the Organization to provide the City with the non-refundable portion of the deposit of $98.25, and provide the City with their insurance.

BACKGROUND
Palenke Arts is a non-profit organization, and they are requesting a fee waiver to help cover the cost associated with their annual event "Dia de los Muertos" (Day of the Dead) celebration on Thursday, November 2, 2023, from 2:00 p.m. to 9:30 p.m. in the Laguna Grande Hall and kitchen at the Oldemeyer Center. This is the third year that Palenke Arts has requested a fee waiver for this event, with the last request being in 2022.

This event will feature a variety of demonstrations and presentations from the different programs offered by Palenke Arts, as well as a large "Ofrenda" which will honor those in our community who have passed away.

Staff recommends that the fees be waived for the rental cost of the facility and that the organization provide liability coverage and pay only the non-refundable portion of the deposit of $98.25 to go towards the building maintenance fund.

FISCAL IMPACT
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Item No. 8.C. Page 2 of 2
The approximate fees which are applicable to this request are:

Laguna Grande Hall & Kitchen Fee 7.5 Hours @
$56.25 per hour
$421.88
Deposit Non Refundable Portion $ 98.25
TOTAL $520.13
Should the City Council approve the request with the staff recommendation to waive all rental fees but require payment for the insurance and the non-refundable deposit only, the fiscal impact is $421.88 out of account 100.3672.

ATTACHMENTS

1. Palenke Arts Fee Waiver Request Dia de los Muertos Celebration (Day of the Dead) 2023

2. Palenke Arts Insurance Dia de los Muertos Celebration (Day of the Dead) 2023 Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.D.

TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Dave Nava, Division Fire Chief
Paul Blaha, Deputy Fire Chief
Mary Gutierrez, Fire Chief
DATE: September 7, 2023
SUBJECT: ADOPT A RESOLUTION TO APPROVE THE RECOMMENDED

SELECTION AND AUTHORIZE THE CITY MANAGER TO EXECUTE

THE PURCHASE OF TWO FIRE DEPARTMENT COMMAND

VEHICLES AND ONE DRONE VEHICLE, AND OUTFIT ALL THREE

WITH EMERGENCY RESPONSE EQUIPMENT, IN AN AMOUNT
NOT TO EXCEED $340,000.00

RECOMMENDATION
Adopt a resolution to purchase and outfit two fire department command vehicles and one drone vehicle.

BACKGROUND
As part of our Operations Budget to replace our Command and Drone vehicles, we have submitted three bids from local dealerships for approval. The budget for these vehicles was approved in FY 2023/2024 in the amount of $340,000.00.

The Seaside Fire Department purchased two Chevy Tahoes in 2015 equipped as Command Vehicles for response and establishing Incident Command. We also utilize a 2006 Chevy Tahoe as a backup vehicle. All three vehicles suited the needs to carry maps, plans, forms, and other necessary items to operate an incident from the back of the built-in command module. Chief officers also carry their Personal Protective Gear (PPE) inside the vehicles as needed to enter IDLH atmospheres at incidents.

Industry standard recommends that Fire Departments move to pick-up truck Command Vehicles with a camper style built-in command module. This allows for better separation of Personal Protective gear to be stored in the rear of the vehicle, away from the driver, thus eliminating any potential exposure to carcinogens on PPE. Several years ago, the Packet Page 25

Item No. 8.D. Page 2 of 3
Fire Department acquired a 2000 Ford Expedition that was previously used as a K-9 transport vehicle. The vehicle has recently been converted to the Drone vehicle that transports crew members and Drone equipment to incidents. The new Done vehicle will be a pick-up truck with a camper-style shell that will carry supplies and monitors for a rapid set-up.

In pursuing the pick-up trucks, we also took into consideration the ability to have 4- wheel drive capability, crew cab access for transporting personnel, along with reliability.

Those vehicles included:

Chevy Silverado
Dodge RAM Tradesman
Ford F-150
The recommendation submitted would be to purchase three Chevy Silverado pick-up vehicles.

FISCAL IMPACT
The Seaside Fire Department received three bids for the pick-up style Command and Drone vehicles:

Premier Chevrolet of Seaside: $55,819.11
Seaside Chrysler Dodge Jeep RAM: $58,192.83
Cypress Coast Ford: $62,671.26
Emergency Response Package and Radios:

Aftermarket equipment is necessary to adequately outfit the purchased vehicles to have emergency lights and sirens. Aftermarket equipment includes fire lights, sirens, console controls, radios, and other equipment required to have a fully operational Fire Command vehicle.

LEHR is the vendor most recently used for the Seaside Fire Department and is the solesource provider. LEHR is located in Hollister, California and is familiar with providing aftermarket equipment to peninsula agencies.

Fiscal Impact:

Vehicle Purchases: $167,457.33 (three vehicles @ $55,819.11 each) Vehicle Emergency Package Outfitting: $172,543 ( three vehicles @ $57,514 each) Total Anticipated Fiscal Impact: $340,000.00
FD Line Item Budget Account #100-6640-8180 (Incident Command Vehicles)

ATTACHMENTS
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Item No. 8.D. Page 3 of 3

1. Attachment A - Vehicle bids

2. Resolution Approving the Purchase of Two Fire Department Command Vehicles and One Drone Vehicle
Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

APPROVING THE PURCHASE OF TWO FIRE DEPARTMENT COMMAND

VEHICLES AND ONE DRONE VEHICLE, AND OUTFITTING ALL THREE

WITH EMERGENCY RESPONSE EQUIPMENT, IN AN AMOUNT NOT TO
EXCEED $340,000.00
WHEREAS, the Seaside Fire Department is in need of two new command vehicles and one drone vehicle; and
WHEREAS, the City Council has approved the budget for these vehicles in the amount of $340,000.00; and
WHEREAS, the Fire Department has received three bids from local dealerships for the purchase of these vehicles; and
WHEREAS, the Fire Department recommends that the City Council approve the purchase of three Chevy Silverado pick-up trucks for the command vehicles and one Chevy Silverado pick-up truck for the drone vehicle; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Seaside, as follows:

Section 1. The City Council approves the purchase of two Chevy Silverado pickup trucks for the command vehicles and one Chevy Silverado pick-up truck for the drone vehicle.

Section 2. The City Council authorizes the Fire Department to outfit all three vehicles with emergency response equipment, in an amount not to exceed $340,000.00.

Section 3. This resolution shall take effect immediately.

PASSED AND ADOPTED at a regular City Council meeting of the City of Seaside duly held on the 7th day of September 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

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APPROVED:
________________________________
Ian N. Oglesby, Mayor
ATTEST:
________________________________
Dominique L. Davis, City Clerk
APPROVED AS TO FORM:
________________________________
Sheri L. Damon, City Attorney
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CITY OF SEASIDE

STAFF REPORT
Item No.: 8.E.

TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Nisha Patel, Public Works Director/City Engineer
Kirstin van Gend, Administrative Analyst II
DATE: September 7, 2023
SUBJECT: ADOPT A RESOLUTION AUTHORIZING A PROFESSIONAL

SERVICES AGREEMENT WITH WILLDAN FINANCIAL SERVICES

TO COMPLETE THE WATER RATE AND CAPACITY FEE STUDIES

FOR SEASIDE MUNICIPAL WATER SYSTEM FOR AN AMOUNT
NOT TO EXCEED $41,350.00

RECOMMENDATION
Adopt a resolution authorizing a professional services agreement with Willdan Financial Services to complete the Water Rate and Capacity Fee Studies for Seaside Municipal Water System for an amount not to exceed $41,350.00.

BACKGROUND
The Seaside Municipal Water System (SMWS) is comprised of approximately 800 service connections serving approximately 3,300 customers. The water system consists of one water well, two water tanks (500,000 gallons each), and seven miles of distribution piping. The water system serves the northeast portion of the City of Seaside and is bounded by La Salle Avenue to the north, Hilby Avenue to the south, Yosemite Street to the west and General Jim Moore Boulevard to the east. The system was originally constructed in 1966, with additions and improvements added over time. The service area is built-out, with new connections limited to accessory dwelling units. The City operates the water system as an Enterprise Fund. Upgrading of the system is funded through revenues in excess of maintenance and operation expenses. The majority of revenue comes from billings for consumption and meter charges. A very small portion of revenue comes from service installations, interest income, and other miscellaneous income sources. California America Water Company (Cal Am) and Marina Coast Water District (MCWD) are the water utility purveyors that serve the remaining Seaside residents.

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Item No. 8.E. Page 2 of 3
The City of Seaside Municipal Water System last completed water rate and capacity fee studies in 2019 and 2020. This resulted in an increase in the billing rates which took effect in 2019. Since then, the needs of the water system have increased, including operational costs of the water utility, and funding of Capital Improvement Projects in order to repair and improve the facilities so as to continue to provide customers with available and safe potable drinking water.

A Request for Proposals (RFP) was released on June 15, 2023, and proposals were due on July 20, 2023. The City received five (5) proposals in response to the RFP. The prime consultants of the teams are Black & Veatch Management Consulting, LLC., Bartle Wells Associates, HF&H Consultants, LLC, Willdan Financial Services, and Harris & Associates, Inc. City staff comprised of the Finance Director, Public Works Director/City Engineer, Associate Engineer, and engineering Administrative Analyst as well as a Consulting Civil Engineer, reviewed and rated the proposals. The proposals were rated based on the qualifications of the project team; project understanding and approach; scope; project management; and, references that confirm a record of producing quality products on similar projects on time and within budget.

Willdan Financial Services was selected based on their qualifications and overall rating.

The Professional Services Agreement for Willdan Financial Services to prepare the Water Rate and Capacity Fee Studies is for an amount not to exceed $41,350.00. And, an approximate 10% contingency adds $4,135.00 for a total agreement amount of $45,485.00.

Staff recommends the City Council adopt a resolution authorizing the City Manager to execute a professional services agreement, PSA, with Willdan Financial Services for the amount not to exceed $41,350.00 to complete the Water Rate and Capacity Fee Studies.

FISCAL IMPACT
The Water Rate and Capacity Fee Studies is to be funded from the Fiscal Year 2023/2024 Budget Water Master Plan account (Account No. 401-8910-9566) which has a remaining balance of $82,000.00. There are sufficient funds in the Water Master Plan budget to enter into a professional services agreement with Willdan Financial Services.

ATTACHMENTS

1. Resolution

2. Professional Services Agreement
Reviewed for Submission to the City Council by:

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Item No. 8.E. Page 3 of 3
_________________________________________
Jaime M. Fontes, City Manager
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RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE

AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH WILLDAN

FINANCIAL SERVICES TO CONDUCT THE WATER RATE AND CAPACITY FEE STUDIES FOR AN AMOUNT NOT TO EXCEED $41,350.00
WHEREAS, the Water Rate and Capacity Fee Studies (Project) is adopted in the fiscal year 2023/2024 annual budget; and
WHEREAS, the request for proposal for professional services was released on June 15, 2023, and proposals were due on July 20, 2023; and WHEREAS, there were five proposals received from Black & Veatch Management Consulting, LLC., Bartle Wells Associates, HF&H Consultants, LLC, Willdan Financial Services, and Harris & Associates, Inc and
WHEREAS, a comprehensive review and rating of the proposals was performed, by a panel of City staff; and
WHEREAS, Willdan Financial Services was found to be the most qualified to perform the work; and
WHEREAS, the Willdan Financial Services proposal was in the amount of $41,350.00; and
WHEREAS, an amount of $4,135.00 contingency, approximately 10% of the professional services agreement amount, should be authorized on an as required basis; and
WHEREAS, the adopted fiscal year 2022/2023 budget for Water Master Plan (Account No. 401-8910-9566) was $170,000.00; and
WHEREAS, the Water Master Plan contract paid out of Account No. 401-8910- 9566 is in the amount of $88,000.00 with a $8,800 contingency for a total possible contract value of $96,800.00; and
WHEREAS, the unencumbered remaining balance for the Water Master Plan (Account No. 401-8910-9566) is $82,000.00; and
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WHEREAS, there are sufficient funds in the Water Master Plan Account to fund the preparation of the Water Rate and Capacity Fee Studies by Willdan Financial Services; and
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Seaside authorizes the City Manager to execute a professional service agreement with Willdan Financial Services for an amount not to exceed amount of $41,350.00 for the professional services for the Water Rate and Capacity Fee Studies; and BE IT FURTHER RESOLVED, that the City Council of the City of Seaside authorizes the City Manager to approve up to an additional 10% contingency for written amendments and extensions to the professional services agreement outlined above such that the full value may not exceed $45,485.00.

PASSED AND ADOPTED at a regular City Council meeting of the City of Seaside duly held on the 7th of September, 2023 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
______________________________
Ian N. Oglesby, Mayor
ATTEST:
___________________________
Dominique L. Davis, City Clerk
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2023 WATER RATE AND CAPACITY FEE STUDIES
Rev. 1/18 Page 1 COS Design PSA

CITY OF SEASIDE

DESIGN PROFESSIONAL SERVICE AGREEMENT
FOR THE 2023 WATER RATE AND CAPACITY FEE STUDIES
THIS AGREEMENT, is made and effective __September 7, 2023______, between the City of Seaside, a municipal corporation ("Agency") and Willdan Financial Services, a corporation (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on the effective date above and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2024, unless sooner terminated pursuant to the provisions of this Agreement.

2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.

Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his/her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement.

4. AGENCY MANAGEMENT
Agency’s City Engineer shall represent Agency in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including the authority to enlarge the Tasks to Be Performed or change the compensation due to Consultant. Agency’s City Manager shall be authorized to act on Agency's behalf and to execute all necessary documents which enlarge the Tasks to Be Performed or change Consultant's compensation, subject to Section 5 hereof.

5. PAYMENT
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(a) The Agency agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed FORTY ONE THOUSAND THREE HUNDRED AND FIFTY dollars ($41,350.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement.
(b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the Agency City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by Agency City Manager and Consultant at the time Agency's written authorization is given to Consultant for the performance of said services.
(c) Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the Agency disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The Agency may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the Agency suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
(b) In the event this Agreement is terminated pursuant to this Section, the Agency shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the Agency. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the Agency pursuant to Section 3.

7. DEFAULT OF CONSULTANT
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(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, Agency shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the Agency Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default.

The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the Agency shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by Agency that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of Agency or its designees at reasonable times to such books and records; shall give Agency the right to examine and audit said books and records; shall permit Agency to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, computer discs, and reports prepared by the Contractor under this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of Contractor. With respect to computer files, Contractor shall make available to City, at City's office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.

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9. INDEMNITY AND DEFENSE
(a) Indemnification and Defense for Professional Services To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Agency and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including attorney’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant’s duty to defend shall consist of reimbursement of defense costs incurred by Agency in direct proportion to the Consultant’s proportionate percentage of fault.

Consultant’s percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the Consultant’s percentage of fault, the parties agree to mediation with a third party neutral to determine the Consultant’s proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the Agency.
(b) For All Other Liabilities
Notwithstanding the foregoing and without diminishing any rights of Agency under Section 9.A, for any liability, claim, demand, allegation against Agency arising out of, related to, or pertaining to any act or omission of Consultant, but which is not a design professional service, Consultant shall defend, indemnify, and hold harmless Agency, its officials, employees, and agents (“Indemnified Parties”) from and against any and all damages, costs, expenses (including reasonable attorney fees and expert witness fees), judgments, settlements, and/or arbitration awards, whether for personal or bodily injury, property damage, or economic injury, and arising out of, related to, any concurrent or contributory negligence on the part of the Agency, except for the sole or active negligence of, or willful misconduct of the Agency.

10. INSURANCE
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Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and part of this Agreement.

11. INDEPENDENT CONSULTANT
(a) Consultant is and shall at all times remain as to the Agency a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither Agency nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the Agency. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against Agency, or bind Agency in any manner. (b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, Agency shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for Agency. Agency shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

12. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The Agency, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section.

13. UNDUE INFLUENCE
Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the Agency in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the Agency will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.

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14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of Agency, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this Agreement.

15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without Agency's prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not without written authorization from the Agency Manager or unless requested by the Agency Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the Agency.

Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives Agency notice of such court order or subpoena. (b) Consultant shall promptly notify Agency should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the Agency. Agency retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with Agency and to provide the opportunity to review any response to discovery requests provided by Consultant. However, Agency's right to review any such response does not imply or mean the right by Agency to control, direct, or rewrite said response.

16. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt Packet Page 44
2023 WATER RATE AND CAPACITY FEE STUDIES
Rev. 1/18 Page 7 COS Design PSA
requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To Agency:

To Consultant:
__City of Seaside__________
__440 Harcourt Ave________
__Seaside, CA 93955_______
Attention: City Clerk_______
Willdan Financial Services_____
_27368 Via Industria, Suite 200
Temecula, CA 92590_________
__ Attention: Chris Fisher_ __

Chris Fisher may use assistants, under its direct supervision, to perform some of the services under this Agreement. Consultant shall provide Agency fourteen (14) days' notice prior to the departure of Chris Fisher from Consultant's employ.

Should he/she leave Consultant's employ, the Agency shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the Governing Board and the Consultant.

18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement.

19. GOVERNING LAW
The Agency and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the Agency.

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2023 WATER RATE AND CAPACITY FEE STUDIES>>
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20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

21. WORK SCHEDULED/TIME OF COMPLETION
Consultant shall complete the outlined scope of work in a timely manner within the time frame per "Section 1. Term" of this contract.

22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL
Consultant is bound by the contents of Agency's Request for Proposal, Exhibit "D" hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Consultant, Exhibit "A" hereto. In the event of conflict, the requirements of Agency's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals.

23. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

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2023 WATER RATE AND CAPACITY FEE STUDIES EXHIBIT A

EXHIBIT A

CONSULTANT PROPOSAL
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City of Seaside
Water Rate and Capacity Fee Studies

EXHIBIT A
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T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com

1. Cover Letter
July 18, 2023
Ms. Kristin van Gend
Administrative Analyst II
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
Re: Technical Proposal to Provide a Water Rate and Connection Fee Study for the City of Seaside Dear Ms. van Gend:

Based on our review of the Request for Proposals, information obtained from the City of Seaside’s (“City”) most recent budget and audited financial statements, and our considerable experience in utility rate and financial consulting for cities, Willdan Financial Services (“Willdan”) is pleased to submit the following proposal to complete a water rate and connection fee study for the City. We welcome this opportunity to bring a fresh perspective while collaborating with the City on the development of a comprehensive financial and rate model.

The key objective of this effort will be to undertake a comprehensive analysis of the City’s water utility, prepare a five-year financial plan, and provide appropriate recommendations, with particular focus on the financial impact of proposed capital projects, including the planned Well #4 Replacement Project and projects identified in the ongoing Water Master Plan.

Willdan’s interactive approach will result in a customized Excel financial model, that the City will retain, as well as a focused and tailored analysis of the City’s current rates, revenues, capital project and operational expenditures, debt commitments, reserve funding, and other financial data. The culmination of our analysis will be a comprehensive financial management plan that develops projected system operating results for the next ten (10) fiscal years, and suggested rates for up to five (5) years. We will employ our proven interactive approach, supported with advanced financial modeling techniques, to develop a sophisticated and flexible financial model to help us guide the City through operating and financial scenarios, while evaluating the impact of policy assumptions, and performing sensitivity analysis on utility rates and financial strategies.

Our ability to focus on the financial aspects of operating publicly owned utility systems is coupled with recognized leadership in strategic planning and operations and enables us to bring unmatched value to our clients. Our team brings a set of nationally recognized qualifications and experts that sets us apart. These qualifications include:

Direct and Recent Experience with Cities and Projects with Same Objectives as Seaside — Willdan does have familiarity with the City, having worked previously with Staff on the annual administration of property assessments, which have since matured, as well as economic analysis related to the reuse of Fort Ord.

In addition, we have worked recently with numerous cities on water and wastewater rate studies with objectives that closely mirror those outlined in the City’s RFP and discussed above – analyzing the current financial plan for the utilities, understanding the impact of capital projects and changing operations, and ensuring sufficient and stable funding for ongoing and projected needs.

We recently completed successful comprehensive studies for the Cities of Blythe, Lomita, Lakeport, La Palma, Soledad, Guadalupe, Grover Beach, the McKinleyville Community Services District, and are currently working with the Cities of Vacaville, Dinuba, Fillmore, and Calexico, with objectives and experience that relate closely to the goals of the City’s proposed study.

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Ms. Kristin van Gend, Administrative Analyst II
City of Seaside
Proposal to Provide a Water Rate and Connection Fee Study July 18, 2023 | Page ii
Unmatched Experience Developing and Implementing Utility Rates — Willdan is nationally recognized for its expertise in developing and implementing utility system financial planning, rate, and impact fee studies, and has extensive experience in California implementing Proposition 218 compliant rate structures, in consultation with leading Proposition 218 legal experts.

Unique Approach — Our approach to the development of financial models and analysis for water utilities has been carefully honed over the years. We will work collaboratively with City staff to carefully assess and understand the City’s unique utility system concerns and issues, clarify goals and objectives for the study, and develop a tailored approach that will best serve your needs.

We do not use a “cookie-cutter” approach, but rather bring a combination of planning and financial expertise providing a thorough understanding of utility operations and management. A key to our approach is the use of a sophisticated and dynamic model and dashboard that allows us to quickly evaluate alternatives resulting from changes in assumptions and input variables, to address different policy and financial objectives.

Communicating the Results — Sound technical analysis is only one element of this process. It will be equally important to effectively communicate the results and implications of the proposed rate structuresto City Staff, City Councilmembers, key stakeholders, and ultimately to those that will be subject to new rates. Most of our projects incorporate significant community and/or stakeholder involvement and education efforts, and our experienced consultants excel in communicating complicated technical analysis in a manner that is easy to follow and understand. The intuitive setup of our financial models allows Willdan to discuss and present critical information in a way that facilitates outreach and maximizes engagement. Our reports and presentations provide a solid understanding of the project and the rationale behind the development of the rates.

Willdan has the availability to dedicate time, personnel, and appropriate levels of resources to this effort, with a commitment to the availability of the firm and all key project staff during the contract period. I, Chris Fisher, will serve as the primary contact person for this proposal; as an officer of the firm, I am authorized to negotiate and bind Willdan Financial Services. Provided in the table below is my contact information.

Willdan Financial Services
Proposal Contact
Chris Fisher
Vice President / Director
27368 Via Industria, Suite 200 | Temecula, CA 92590
Tel #: (951) 587-3500 | Email: [email protected]
Willdan maintains exceptional experience in utility cost of service and rate analysis and is excited about this opportunity to use our skills and expertise to serve the City of Seaside.

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director
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Water Rate and Connection Fee Study iii
City of Seaside, California
Table of Contents

1. Cover Letter...............................................................................................................................................................i

2. Project Team............................................................................................................................................................1 Qualifications and Resumes.....................................................................................................................1

3. Relevant Project Experience........................................................................................................................... 2 Firm Profile ..............................................................................................................................................2 Willdan Financial Services........................................................................................................................2 Project Manager / Key Staff References..................................................................................................2 References...............................................................................................................................................3 Utility Rate Project Experience ................................................................................................................4

4. Project Understanding and Approach....................................................................................................... 5 Project Understanding.............................................................................................................................5 Project Methodology ...............................................................................................................................6

5. Project Schedule................................................................................................................................................... 9 Project Management...............................................................................................................................9

6. Scope of Services................................................................................................................................................ 10 Work Plan ..............................................................................................................................................10 Exhibit - Resumes...........................................................................................................................................................A Chris Fisher ..............................................................................................................................................A Michael Cronan........................................................................................................................................C Kevin Burnett, MA....................................................................................................................................E

7. Fee Proposal............................................................................................................... Under Separate Cover Packet Page 52
Water Rate and Connection Fee Study 1
City of Seaside, California

2. Project Team
Qualifications and Resumes
Our management and supervision of the project team is very simple: fill every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected the following professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.

With our team’s extensive in-house experience, no subconsultants will be utilized for this project.

Project Team
City of Seaside Project Team
Key Team Member Project Role Responsibility to the Engagement Chris Fisher
Vice President /
Director
Principal-in-Charge /
Project Manager
▪ Technical guidance;
▪ Project oversight;
▪ Responsible for project deliverables;
▪ Stakeholder outreach;
▪ Review of deliverables and Quality Control; and
▪ Meeting and presentation attendance.

Michael Cronan
Project Manager
Lead Financial Analyst
▪ Collect, coordinate, interpret, and analyze key
data;
▪ Lead development of the model and financial plan;
▪ Attendance at presentations and meetings; and
▪ Report preparation.

Kevin Burnett, MA
Principal Consultant
Technical Advisor /
Quality Control Manager
▪ Task oversight;
▪ Report evaluation;
▪ Quality assurance & control; and
▪ Ensure procedural integrity.

Project Manager / Staff Continuity
Mr. Fisher has been assigned to serve as the City’s representative; and has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous utility rate studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.

Willdan is composed of over 1,500 employees, including a cadre of public finance experts. If necessary, Mr. Fisher can recruit additional, qualified individuals from our employee roster to assist with the completion of this engagement to deliver the final materials on time and within budget. We do not anticipate staffing changes during the course of the project, however, should the situation arise, any change in team members will be discussed and approved in concert with the City prior to the change being made.

Resumes
Resumes for Willdan’s project team are presented as an Exhibit, as requested.

It is important to note that Mr. Fisher
has been with Willdan for 24 years,
ensuring the City of Seaside of
continuity and dedication in staffing
during the completion of the project.

Packet Page 53
Water Rate and Connection Fee Study 2
City of Seaside, California

3. Relevant Project Experience
Firm Profile
Willdan Financial Services is an operating division within Willdan Group, Inc. (WGI), which was founded in 1964 as an engineering firm working with local governments. Today, WGI is a publicly traded company (WLDN). WGI, through its divisions, provides professional technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems, facilities, and environment. The firm has pursued two primary service objectives since its inception—ensuring the success of its clients and enhancing its surrounding
communities.

A financially stable company, Willdan has over 1,500 employees working in more than a dozen states across the U.S. Our employees include a number of nationally recognized Subject Matter Experts for all areas related to the broadest definition of connected communities—three of whom are committed to
contribute their expertise throughout the duration of the City of Seaside’s Utility Rate Study engagement.

Willdan Financial Services
Established on June 24, 1988, Willdan Financial Services, a California Corporation, is a national firm and is one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges.

Willdan assists local public agencies by providing the following services:

Willdan Financial Services
Services
▪ User fee studies
▪ Cost allocation plan studies
▪ Utility rate and cost of service studies
▪ Real estate economic analysis
▪ Municipal advisory services
▪ District administration services
▪ Property tax audits
▪ Economic development strategic plans
▪ Development impact fee establishment and
analysis
▪ Tax increment finance district formation and
amendment
▪ Feasibility studies
▪ Arbitrage and continuing disclosure services
▪ Debt issuance support
▪ Long-term financial plans and cash flow modeling
Project Manager / Key Staff References
References
Client Project Contact
City of Dinuba, CA Water and Wastewater
Utility Rate Study
Mr. George Avila, Business Manager
1088 E. Kamm Avenue, Dinuba, CA 93618
Tel #: (559) 591-5924 | Email: [email protected]
City of Lomita, CA Water Rate Study
Carla Dillon, P.E., Public Works Director
24300 Narbonne Ave, Lomita, CA 90717
Tel #: (310) 325-7110 x 124 | Email: [email protected] Packet Page 54
Water Rate and Connection Fee Study 3
City of Seaside, California
References
Provided below are recent project descriptions, including client contact information, which are similar in nature to those requested by the City. We are proud of our reputation for customer service and encourage you to contact our clients regarding our commitment to completing these assignments within the agreed upon project budget and schedule.

McKinleyville Community Services District, CA | Water & Sewer Rate & Capacity Fee Study Willdan recently assisted MCSD with a water and sewer rate study, where rates were successfully adopted for five years, for both utilities. The project included a rigorous evaluation of the CIPs for both utilities, testing of scenarios to understand the financial impacts on customers and mitigate rate increases. The District takes a conservative and aggressive approach to completing capital projects and accumulating reserves to protect itself from unanticipated events, so our modeling included multiple provisions to present, discuss and evaluate options. The project included the preparation of the comprehensive model and financial plan, which analyzed projections for both utilities for ten years, preparation of reports, preparation and mailing of Prop 218 notices, and presentation of results to the Board of Directors. Rates were successfully adopted in November 2022.

Client Contact: Mr. Patrick Kaspari, PE, General Manager 1656 Sutter Road, McKinleyville, CA 95519
Tel #: (707) 839-3251 | Email: [email protected] City of Lakeport, CA | Water and Sewer Rate Study
Willdan assisted the City of Lakeport with the development of a water and wastewater utility rate study. The scope of services included development of the financial plan, model, and reports, including the adjustment of the tiered rate structure. The City was in the position of needing potentially significant rate increases, so we worked collaboratively with them throughout the process to evaluate options for the financial plan to address the needs of the utilities, while balancing the impact on ratepayers.

Willdan team members worked closely with the City’s Proposition 218 legal counsel to update the City’s water rate structure while ensuring compliance with the applicable provisions of the California Constitution, as well as the San Juan Capistrano court decision.

Client Contact: Nick Walker, Assistant City Manager, Finance Director 225 Park Street, Lakeport, CA 95453
Tel #: (707) 263-5615 x 301 | Email: [email protected] City of Grover Beach, CA | Water and Wastewater Rate Study Willdan was selected in 2020 to complete a water and sewer rate study for the City of Grover Beach. The project included the completion of a comprehensive financial plan, along with cost-of-service analysis and development of updated rates. We collected and evaluated the necessary data, prepared the financial plan with various options and scenarios for City staff’s consideration, including shifting from a uniform water rate structure to either a two- or three-tiered structure, and prepared and submitted the rate study report with the selected approach.

The City’s utilities were in relatively good health, so major increases were not recommended. Currently the City Council has received the rate report and recommendations, the date has been set for the Public Hearing as required by Proposition 218.

Client Contact: Deanne Purcell, Administrative Services Director 154 South 8th Street, Grover Beach, CA 93433
Tel #: (805) 473-4555 | Email: [email protected] Packet Page 55
Water Rate and Connection Fee Study 4
City of Seaside, California
Utility Rate Project Experience
The abbreviated table of experience below outlines projects that are similar in nature to those requested.

Willdan Financial Services
Utility Related Experience
Agency Project
City of Albany, CA Sewer Rate Study
City of Avenal, CA Water and Sewer Rate Study
City of Blythe, CA Water and Sewer Rate Study
City of Brighton, CO Potable Water Rate Study
City of Calexico, CA Water & Sewer Rate Study and Connection Fee Study City of Claremont, CA Sewer Rate Study
City of Coachella, CA Proposition 218 Sewer Mailing
City of Delano, CA Water, Sanitary Sewer, Solid Waste Utility Rate Study City & County of Denver, CO Sanitary Sewer & Storm Drainage Benchmarking and Storm Drainage Impact Fee Study
City of Dinuba, CA Water, Sewer, & Solid Waste Rate Study City of Durango, CO Water and Wastewater Rate Study
City of Fillmore, CA Water and Sewer Rate Study
City of Flagstaff, AZ Utility Rate Analysis
City of Fruita, CO Sewer Rate Study
City of Grover Beach, CA Water, Wastewater, and Stormwater Financial Plan and Utility Rate Study
City of Guadalupe, CA Water and Sewer Rate Study
City of Hercules, CA Wastewater Financial Plan and Connection Fee Study City of Kingman, AZ Water and Sewer Rate Study
City of La Palma, CA Water and Sewer Rate Study
City of Lakeport, CA Water and Sewer Rate Study, and Connection Fee Study City of Lomita, CA Water Rate Study
City of Norwalk, CA Water Rate Study
City of Pinole, CA Wastewater Rate and Fee Study
City of Richmond, CA Wastewater Rate Study
City of Sebastopol, CA Water and Wastewater Fee Study
City of Soledad, CA Water Rate Study Consulting Services City of Tulare, CA Water and Wastewater Rate Study
City of Twentynine Palms, CA Sewer Treatment Facility Fair Share and Sewer Rate Analysis County of San Diego, CA Sewer Rate and Standby Charge Study McKinleyville CSD, CA Water and Wastewater Rate and Capacity Fee Study Mission Springs Water District, CA Water and Sewer Rate and Fee Study Monte Vista Water District, CA Connection Fee Study
Rainbow Municipal Water District, CA Water and Wastewater Asset Cost and Capacity Fee Study Town of Apple Valley, CA Sewer Rate and Nexus Study
Town of Gilbert, AZ Water and Sewer Rate Study
Packet Page 56
Water Rate and Connection Fee Study 5
City of Seaside, California

4. Project Understanding and Approach
Project Understanding
The following project approach and scope of services is based on Willdan’s current understanding of the City of Seaside (“City”) needs and objectives for the water utility rate study and connection fee study, our review of the most recent audited financial statements and City Budget, and the requested services outlined within the Request for Proposals (“RFP”). While this approach and scope is informed by our initial research, we will begin this project by working with the City to enhance our understanding of the City’s current financial situation by conducting meaningful discussions regarding your objectives and priorities for this study. Our objective is to provide Staff and the Council with the information it needs to fully understand the water utility’s current and projected financial condition, evaluate options for moving forward, and make informed decisions based on this process.

The intent of this study is to independently evaluate the City’s current water and connection fees, to determine whether sufficient revenue is being collected for utility activities and develop an updated schedule of rates that is simple, equitable, and most importantly, structured to meet the future financial needs of the utility. The proposed rate structure must adequately fund the ongoing operating, maintenance and capital improvement needs, and account for yield restrictions associated with the adjudicated Seaside Groundwater Basin.

The City of Seaside provides water to a population of approximately 3,300 through approximately 800 connections. Water services are provided to the remainder of the City by either California American Water or the Marina Coast Water District. A brief review of the most recent financial statements available on the City’s website provides insight into the financial condition of the water utility. We reviewed the Annual Comprehensive Financial Report (ACFR) for FY ending June 30, 2022 (FY ending 2023 was not yet available), and the Adopted Annual Budget for 2023/2024 and found the following:

The ACFR shows positive operating results for the fiscal year ended June 30, 2022, and the Budget projected a positive financial result for FY 2022/23 as well. According to the FY 2021/22 ACFR, Operating Revenue was $1.3M, compared to Operating Expenses of $889K, for positive operating result of $415K, which increased net position for the year. The Budget projected a relatively modest positive operating result of $96K for FY 2022/23, which included normal operations and revenues; it also accounted for a $1.5M transfer of ARPA money from the General Fund related to the well replacement project and well-related planning and design costs. Planning and design for the well began in FY 2022/23 and will continue into FY 2023/24. On an operating basis the FY 2023/24 Budget shows about $1.3M in revenue and $1.6M in expenses, and a budgeted decline in net position of $367K. The capital plan included in the Budget shows costs related to the Water Master Plan and $17.75M related to the Well Replacement Project over the next five years. The Water Fund has an interfund loan from the General Fund in the amount of $7.55M that matures in 2044, so it will be important to ensure provision for debt repayment is maintained in the financial plan we will develop.

The above-mentioned factors require a comprehensive and detailed look at the water utility. Recommended rates will need to account for the operating and capital needs of the utility, payment of debt, replenishment and maintenance of designated reserves, including rate stabilization and capital expenditure funds, and account for updated Safe Yield thresholds determined by the Watermaster for the Seaside Groundwater Basin. Our approach incorporates a Capital Plan Analysis to ensure the utility will be best equipped to address the upcoming Well Replacement (and other projects) and their funding over the next five years.

The project will entail three primary phases. The first is the review and evaluation of the previous rate study and development of objectives, development of a comprehensive financial plan, with projections for the next five years for the purposes of recommending rate adjustments extended out to ten years to provide a longer view of potential utility needs, particularly capital projects. The purpose of the financial plan is to arrive at the required revenue for the utility, which serves as the basis for recommendations going forward, and the development of updated rates, if necessary.

Packet Page 57
Water Rate and Connection Fee Study 6
City of Seaside, California
We will produce financial analyses and recommendations to account for critical needs, while balancing them with the potential impact on customers. Willdan will develop a comprehensive financial plan that considers updated forecasts for sales, operating expenses, as well as capital expenses, and provides for:
▪ Sufficient and stable revenue for operations and
routine maintenance;
▪ Consideration of Safe Yield Limits for the Seaside
Basin;
▪ Adequate coverage for repayment of debt;
▪ Analysis of tiered rate options;
▪ Coverage for direct and indirect costs;
▪ Consideration of Watermaster expenditures;
▪ Accumulation and maintenance of appropriate
reserves, rate stabilization and capital funds;
▪ Major and minor capital projects.

This financial plan will serve as the basis for a full cost of service analysis and ultimately the development of recommendations for updated rates. The cost-of-service analysis will be conducted to ensure any new recommended rates comply with the requirements of Proposition 218 and recent legal decisions.

Our recommendations and any proposed structure(s) will be developed in compliance with Proposition 218 requirements and recent court decisions, including the San Juan Capistrano case. We have worked recently with a leading Proposition 218 legal expert to develop tiered rates and supporting analysis to address these factors, allowing us to bring this insight to the City of Seaside’s study.

The financial plan will be created using a highly flexible and interactive model and dashboard that will allow us to work collaboratively with the City to present and evaluate different financial scenarios, and quickly make changes in underlying assumptions based on feedback and discussions. Our goal will be to arrive at a financial plan that meets the City’s objectives, and that provides understanding and education to City staff and ultimately the Council, as they make decisions regarding the proposed rates.

Project Methodology
As described herein, and detailed within the scope of services that follows, our approach to this water rate study is built around three primary objectives:

Primary Objectives
Working collaboratively with the City of
Seaside to develop the comprehensive
financial plan and model for the utility
Using the model to develop and
evaluate various rate, financial and
capital funding scenarios
Arriving at a final plan and set of
recommended rates that have a clear
and transparent rationale and basis
We propose to conduct this process in a way in which staff and stakeholders gain understanding throughout the process of how the plan is developed, and how policy and financial decisions affect it, so that we can clearly communicate the process and results to City Council and the community. The communication part of the process is critical in gaining acceptance and understanding of the broader community.

Our rate study analysis will include comprehensive financial management plan alternatives for the next ten fiscal years to support the proposed fiveyear rate plan.

As part of this analysis, Willdan will develop a comprehensive financial analysis — which incorporates the following:
▪ Revenue requirements such as operating expenses, transfers, and reserve requirements; ▪ Major and minor capital expenses;
▪ Cash and debt-funded major capital expenditures, along with existing annual debt service expenses; ▪ Adequate funding of designated reserves including operating and existing debt service, and other reserves as outlined in the City’s financial policies; and
▪ Functional cost breakdown consistent with Proposition 218 requirements and American Water Works Association (AWWA) rate-making standards.

The financial planning
component of the model provides
transparency such that users can
develop a viable financial plan
and understand the reasons for
needed revenue adjustments.

Packet Page 58
Water Rate and Connection Fee Study 7
City of Seaside, California
The culmination of the revenue requirements analysis, which will include a capital project financing plan and cost of service allocations, will be alternative rate plans which will provide sufficient revenue to meet the ongoing funding needs of the system, while recovering costs from customers in a manner which is fair, equitable, and within reasonable customer impact parameters.

During this project, we will utilize our Microsoft Excel-based model, with its interactive dashboard, as a comprehensive financial tool to allow for planning and reviewing of variable inputs and assumptions, thereby creating a thorough analysis of revenue requirements to address the City’s goal of ensuring predictable and stable revenue.

This analysis is then seamlessly integrated with the rate development component of the model to demonstrate and project various rate design alternatives, and the effects they would have on the City’s financial outlook.

The model is used in meetings, in order to efficiently cycle through rate scenarios and establish the most viable rate plans for the City. During these interactive meetings, we invite City staff to participate in scenario planning / “what-if” sessions, where we use the dashboard to demonstrate and evaluate the financial/rate impact of alternative data (CIP, operating costs, etc.) and assumptions (interest rates, customer growth, cost escalation, etc.) in real-time to focus on the most critical drivers of the analysis. This ensures the resulting rate plan alternatives are viable from a financial, operational, managerial, and political perspective.

To the extent revenues are not projected to be sufficient to meet requirements including operating expenses, debt service payments and coverage requirements, planned capital expenditures and targeted operating reserves, the model can be used to evaluate variable outcomes and alternatives, providing basis for meaningful discussions with elected officials and stakeholders well in advance of the actual rate increase process.

Real-Time Financial Modeling
The goal of financial forecasting is to provide clear vision regarding the potential financial outcomes of current management decisions. Our goal is to help you mold the existing knowledge base of the City into a viable financial management and rate plan. At Willdan, the development and use of real-time financial models in an interactive, collaborative process is an integral part of the model development. Any model is only as effective as the expertise of those who develop it; our state-of-the-art financial modeling techniques allow us to incorporate our considerable experience by asking the correct questions, evaluating, and incorporating appropriate data, providing interactive consulting services, and evaluating multiple scenarios with the City in a real-time setting. Because our interactive model will be populated with specific data from the City (i.e., division and account structure), each alternative reviewed in real-time during interactive meetings with the City can be done with a complete understanding of specific customer impacts. Further, our experience ensures that the data loaded into the model is vetted and validated, and that the baseline results from which forecasts are developed are fully understood from the beginning, so that more time is spent on evaluation of potential solutions, rather than questioning whether the underlying data and assumptions are correct.

Model Development as Part of the Consulting Process
The financial planning model will be designed with the following elements:
▪ Graphical dashboard to clearly show the results of
various scenarios to the user;
▪ Easily reviewed and modified assumptions;
▪ Validated data tables generated from the City’s
financial and operational information; and
▪ A powerful calculation engine.

The model will be “baselined” after an initial meeting with staff to ensure that we have the correct data and a basic understanding of the financial dynamics of your system. We will then conduct interactive financial planning sessions with City staff.

Packet Page 59
Water Rate and Connection Fee Study 8
City of Seaside, California
After validating our data, calculation approach, and baseline assumptions, we will explore alternative scenarios, varying a number of assumptions and financial planning techniques including:
▪ Rate increase magnitude and timing;
▪ Alternative timing of capital projects;
▪ Alternative financing options (alternative
combinations of pay-as-you-go, revenue bond debt
and other debt, for example);
▪ Alternative growth/demand forecasts and other
“what if” analysis, such as the impact of a loss of
one or more service areas or significant customers;
and
▪ Effect of increases in other sources of funds.

Given any combination of cost requirements (both operating and capital), non-rate sources of funds, and forecast assumptions, the Willdan team will work with the City to develop a financial plan that:
▪ Meets specified reserve targets;
▪ Addresses identified benchmarks or key
performance indicators;
▪ Fully funds capital expenditures using specified
financing techniques; and
▪ Meets legal, policy and contractual requirements
that are financially measurable, such as existing
debt service coverage on revenue bonds.

Subsequent to careful development and validation of the baseline forecast, a series of alternative forecasts will be prepared illustrating various results in the following general categories:
▪ What if things turn out differently? These alternatives will demonstrate the sensitivity of the forecast to the significant assumptions used. This results in a sound understanding of areas where a conservative forecast approach is warranted.
▪ What happens when we try this? This series of alternatives focuses on different financial management approaches. For example, the use of different financing techniques such as capitalized interest, interim shortterm financing, and capital appreciation bonds may be explored. ▪ What can we do to make it better? This approach to forecasting identifies the factors that may be causing significant rate increases in a given year and explores alternatives. For example, if a large capital project in a single year is the culprit, we would work with staff and the consulting engineers to determine whether this project could be phased or delayed.
▪ How will any adjustments affect our customers? In examining rate structure alternatives, we will demonstrate and discuss how users in various categories or classifications will be impacted. Our consultants will use our rate design model to explore the impact of various rate structures on bills for each customer class over the relevant consumption range.

Communication as Part of the Consulting Process
Willdan’s experienced professionals are accustomed to
communicating with a variety of stakeholder groups, from management and staff, boards, and commissions, as well as the community. Our analytical and modeling approach will be customized to the City’s specific needs. As mentioned, the custom graphical interfaces imbedded in our models allow our consultants to easily track key performance metrics and work through alternative scenarios with the City staff and
management. Features of the Excel-based analysis model
include the ability to incorporate line-item data and
assumptions that are then summarized in a graphic dashboard to show key financial indicators for the utility systems. The sample dashboard illustrates how we can summarize data, assumptions, and calculations into an easy-tounderstand graphical interface that updates with each alternative scenario evaluated. A copy of the final dashboard model will be provided to the City of Seaside upon completion of the project.

Packet Page 60
Water Rate and Connection Fee Study 9
City of Seaside, California

5. Project Schedule
The following proposed schedule outlines the estimated number of weeks to complete each task outlined in our scope of services. A specific project schedule will be developed following consultation and in concert with City staff.

Project Management
At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations. We will document discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and model. Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City of Seaside staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate.

Project Management
Define the Project Plan the Project Manage the
Project Review the Project Communicate the Project
▪ Identify the project
scope, set objectives,
list potential
constraints, document
assumptions.
▪ Define a course of
action and develop an
effective
communication plan.
▪ Provide a forum for
applying the team’s
collective expertise to
solving difficult
analytical issues that
arise in complex
projects.
▪ Collaborate with the
project team and client
staff and agree upon a
timeline to meet the
estimated project timeline.
▪ Assign workload functions
to appropriately qualified
staff to ensure milestones
are met, on time.
▪ Pre-schedule quality
control meetings with the
project team to maintain
the progressive motion of
the project.
▪ Manage the
execution of the
project.
▪ Direct existing and
upcoming project
tasks.
▪ Control and
monitor work in
progress.
▪ Provide feedback
to client and
project team.
▪ Identify and
resolve deviances
from project
timeline.
▪ Review all work
product and
deliverables.
▪ Utilize structured
quality assurance
process involving
up to three levels of
review at the peer
level, project
manager level.
▪ Procure executive
officer level review.
▪ Communicate with the
client regarding work
status and progress.
▪ Ensure client is in
receipt of regular status
updates.
▪ Schedule regular
conference calls to
touch base.
▪ Inform client of
roadblocks, work
outside of projected
scope.
7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 5 12 19 26 4 11 18 25 1 8 15 22 29 Task 1.1 -Data Collection & Review
Task 1.2 -Kick-off Meeting & Planning Discussion
Task 2.1 -Financial Plan, Revenue Requirements & Rate Determinants Task 2.2 -Capital Plan Analysis
Task 2.3 -Cost-of-Service Allocations
Task 2.4 -Rate Analysis & Design
Task 3.1 Data Collection
Task 3.2 Data Review
Task 3.3 Land Use Assumptions
Task 3.4 Develop CIP
Task 3.5 Calculation of Connection Fees
Task 4.1 -Reports & Deliverables
Task 4.2 -Proposition 218 Notice Preparation
Task 5.1 -Meetings & Presentations
City of Seaside
Water Rate and Capacity/Connection Fee Study
Schedule
Water Rate Study
Capacity/Connection Fee Study
Preparation of Reports and Proposition 218 Notices
Scope of Work August September October
Education, 1st Council Action (Jan-March) & Public Hearing (May 2024) November February March April
Final Report
December January.2024
Project Initiation
Communicating Results - Presentations & Meetings Packet Page 61 Water Rate and Connection Fee Study 10
City of Seaside, California

6. Scope of Services
Work Plan
The following proposed scope of services is intended to capture the goals and objectives of the City. Willdan is confident the following will effectively meet the stated project objectives. A final scope and schedule will be determined based on further discussions with City staff if selected.

Willdan’s work plan will culminate in the successful development of water projections and rates for five years, an extended ten-year financial plan, and the education of staff and key stakeholders.

Project Initiation
Task 1.1 – Data Collection and Review
Task 1.1.1 – Data Collection. The City will be provided with an initial list of basic data needed to conduct the study. The data request may include, but will not be limited to:
▪ Financial and operating data (budgets, audits, financial statements, cash balances, etc.);
▪ Related reports prepared by others (i.e., Master Plan); ▪ Capital Improvement Plan, fixed asset records;
▪ System operating data for the utility;
▪ Customer account and billing data;
▪ Debt service schedules;
▪ Ordinances, previous rate studies, City
codes; and
▪ City financial, debt and reserve policies.

Task 1.1.2 – Data Review. We propose to conduct initial data collection and review prior to the kick-off meeting to allow for a more meaningful discussion to occur. This will allow for our review of data in advance of the meeting so that we can request clarifications or follow-up information as necessary. However, if the City’s preference is to conduct the kick-off prior to collecting data, we will accommodate that request. The data will be reviewed for completeness and to ensure a sufficient understanding of historical utility operations.

Task 1.2 – Kick-off Meeting and Planning Discussion
Task 1.2.1 – Project Kick-off. Following initial data collection and review, Willdan will conduct a kick-off meeting with City staff. During this meeting we will discuss goals and objectives of the study, the schedule, constraints, or challenges that may be encountered, stakeholder considerations and objectives, and political concerns.

Discussions may center around the following:
▪ Review of previous rate study and existing rate structure and areas where existing rates have been successful and/or specific areas of focus;
▪ Review of recent financial performance for the utility; ▪ Discussion of anticipated significant events (i.e., loss or gain of any major customers, major capital projects); ▪ Components to incorporate into the updated revenue requirements; such as, capital improvements, debt repayment, reserves, annual repair and replacement, ongoing maintenance, cost of imported water, etc.; ▪ Strategy and level of effort for outreach and education; ▪ Conduct a detailed review of the data used in the baseline financial forecast; and ▪ Review and resolve (or develop a plan for resolving) data issues and questions.

For further efficiency and collaboration, the kick-off meeting will include a financial policy discussion. This will serve to address and document the City's financial policies for the utility to be studied.

Topics of discussion may include:
▪ Rate design approaches and alternatives;
▪ Rate policy objectives;
▪ Reserve options and target levels (operating, debt
services, rate stabilization, repair, and
replacement);
▪ City financial policies;
▪ Conservation objectives and rate options;
▪ Customer characteristics and classifications; and
▪ Cost of service factors and Proposition 218.

Packet Page 62
Water Rate and Connection Fee Study 11
City of Seaside, California
Water Rate Study
Task 2.1 – Financial Plan, Revenue Requirements and Rate Determinants Task 2.1.1 – Historical Billing Data Analysis. The data request document will provide instructions for the development of historical customer billing information. It is anticipated that the billing information will be provided in a format necessary to summarize the water accounts and billable flows by customer class for a recent historical period for which audited revenues exist. The customers and flows provide the basis on which operating revenues are derived and are therefore the primary factors utilized in reviewing the user rates and charges.

As such, the historical billing data provides an important basis for analysis that will be used to develop assumptions for projecting revenues under existing and/or proposed rates.

Task 2.1.2 – Customer and Flow Projections. The water system accounts and billable flows will be forecasted for a five-year planning period. Such projections will be developed by considering historical growth trends, peak demands, climatological patterns, local economic conditions, potential for adding/losing major utility customers, changes in customer class usage patterns over time, and experienced judgment. The billable flow projections will be based on the projected number of utility accounts and a usage per account analysis to differentiate the historical effects of account growth and increased (decreased) average usage by customer class.

Task 2.1.3 – Projected Revenues Under Existing Rates. Projections of utility system revenues under existing rates for the five-year planning period will be developed, recognizing projected accounts, flow volumes, and usage patterns by customer class (as determined in the billing analysis under the previous tasks).

Task 2.1.4 – Projected Revenue Requirements. Revenue requirements (i.e., system expenditures) will be developed based on an analysis of historical, currently budgeted, and anticipated operating and capital expenditures. The revenue requirements will be projected on a fiscal year cash flow basis, considering expected operational changes, changes in staffing or operating expenditures for new facilities, system growth occurring from new development, anticipated extraordinary expenses, and allowances for inflation. The projections will include, but not be limited to, the following:
▪ Operation and maintenance expenses;
▪ Direct and indirect costs utilizing the City’s
existing overhead cost allocation model;
▪ Outlay for annual capital additions and
replacements;
▪ Debt service and reserve requirements on existing
and anticipated debt instruments;
▪ Provision for reserves as outlined in the City’s
financial policies; and
▪ Other expenditures and transfers.

Task 2.1.5 – Projected Operating Results Based on Existing Rates. The projected revenues and revenue requirements will be summarized into a five and ten-year cash flow statement providing the projected operating results of the water system under the existing rates.

The cash flow statement will be used to estimate annual adjustments in utility revenues necessary to fund operating and capital expenditure requirements, meet existing bond covenant requirements, and maintain prudent utility management
practices. The estimated timing and magnitude of future debt issues required, if any, to finance proposed capital improvements will also be shown. Concurrent with the development of the projected operating results, the study will review the general financial health of the utility operations and, as necessary, make recommendations for changes in fund balances, reserves, and debt service coverage ratios to maintain financial integrity and a stable bond rating. The graphic above demonstrates the general rate study methodology and major components of the rate process.

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Task 2.2 – Capital Plan Analysis
Task 2.2.1 – Review Capital Improvement Program (CIP) and Asset Replacement Schedules. The City’s existing utility system five-year CIP will be reviewed with City Staff. The objective of such a review is to gain an understanding of the types of projects scheduled; the timing associated with such projects, associated expenditure requirements and the sources of funding each project.

Examining the impacts on the financial objectives of the water utility, as well as capital projects associated with rehabilitation and replacement of existing facilities, will be a key objective of not only this task but the entire project. The results of the financial plan will also help the City to prioritize projects identified within the CIP.

Task 2.2.2 – Develop Capital Needs Plan. Based on the findings made in the previous task and the Projected Operating Results described in Task 2.1.5, a plan will be developed to provide for the anticipated capital expenditure activities, including debt issuances, relative to the CIP. Such a plan will include consideration for the use of restricted and unrestricted funds, surplus operating reserves, capital recovery fees, and future rate adjustments. The analysis will also develop a projection of reserve fund balances and level of liquidity.

Task 2.2.3 – Capital Projects Model. The CIP will drive the future funding options and will directly impact rates.

Therefore, the rate analysis will incorporate the City’s current five-year CIP. The rate model will have the ability to run various CIP funding scenarios and quickly show the estimated impact on utility rates.

Since we are not serving as the financial/municipal advisor to the City for this project, we will rely on information relative to proposed debt or financing structures provided by the City or its designated financial/municipal advisor.

Task 2.3 – Cost-of-Service Allocations
Task 2.3.1 – Functional Cost Allocations. The analysis will allocate the Test Year revenue requirement (i.e., costs of providing service) to the various cost/rate components that constitute functional classifications of the types of service provided.

The functional cost allocations will evaluate such aspects as fixed costs, customerrelated costs and volumetric/usage related costs. The evaluation of allocation factors associated with applicable costs will be based on existing rate structures applied by the City, meter size, rate structures applied by other comparable utility systems in the region, common industry practice and standard rate-making principals.

Task 2.3.2 – Determination of Revenue Adequacy. Comparisons of revenues under the existing water rates with the allocated costs of service will be evaluated in order to determine the degree of cost recovery by the various cost components, and to identify areas that may possibly require adjustments to align the revenues from each rate component with the allocated costs.

Task 2.4 – Rate Analysis and Design; Review of Other Fees Task 2.4.1 – Evaluation of Existing Rate Structures. The existing rate structures will be further evaluated for their effectiveness in equitably recovering costs of utility service from each customer class. The City’s current rate structure will be evaluated, and recommendations will be made for potential modifications to the current rates.

As part of the rate design process, Willdan will discuss with departmental staff the current trends and philosophies in utility ratemaking. Based on these discussions, the analysis will develop and recommend a rate design and philosophy that best meets the objectives of the City. Basic standards for rate design accepted by the industry are:

Full Cost Recovery – rate revenue should provide sufficient income so that, when combined with other sources of funds, funding requirements for the system are covered including, all current long-term liabilities, debt obligations and future expansion-related and R&R-related capital needed to replace aging and infrastructure.

Fairness and Equity – based on cost responsibility as reflected in cost-of-service allocations, in accordance with industry standards.

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Technically Defensible – apply industry proven standards and methodologies to help shield the City from potential legal challenges associated with the proposed utility rates.

Resource Conservation – under conditions of scarcity, the pricing of water as a commodity should promote voluntary conservation, discourage unnecessary service use and extend the availability of supply.

Administrative Efficiency – rates should be understandable to customers and efficiently administered by staff.

Customer Acceptance – customers understand the rates, view them as fair, and consider them to be reasonable compared to other costs and other utilities.

Public Health and Welfare – rates are structured so that essential service usage is encouraged through affordability.

Task 2.4.2 – Rate Structure Alternatives. The rate model will be developed in a dynamic manner such that the Willdan Team and City Staff will be able to analyze “what if” scenarios detailing the financial impacts under each scenario utilizing an iterative dashboard view. Baseline rate structures will be recommended as required to fund the utility systems and consider annual inflationary indexed adjustments to rates as needed to maintain each utility. We will coordinate with City Staff to ensure suggested rate structures are compatible with the City’s utility billing software.

Task 2.4.3 – Projected Operating Results Based on Proposed Rates. The proposed user rates and/or rate structures will be applied to the projected customers and flows in order to estimate the revenues to be generated from the proposed rates for the Test Year and the subsequent years of the projection period. The projected revenues will consider possible elasticity effects associated with changes in usage characteristics that may occur from revising the rate structure. In addition, similar to the process described in Task 2.1, the fiveyear forecast will identify annual adjustments in utility system revenues necessary to meet existing bond covenant requirements, prudent management practices, and/or sound capital financing considerations.

Task 2.4.4 – Typical Bill Comparison. Comparisons of typical utility bills under the existing and proposed rates will be developed for each customer class under various levels of usage. The selected customer class usage levels will reflect the results of the billing analysis to better demonstrate rate impacts on typical customer accounts in each class.

Task 2.4.5 – Neighboring Utility Comparison. A comparison will be prepared to assess the difference between existing and proposed rates of the City with those of at least five other comparable municipal utility systems.

Capacity/Connection Fee Study
Task 3.1 – Data Collection
The City will be provided with an initial list of basic data needed to conduct the study. The data request may include, but not be limited to, items such as financial data, customer account and billing data, reports prepared by others, capital improvement programs, fixed asset records, official bond statements, debt service schedules and master plans.

Task 3.2 – Data Review
The data will be reviewed for completeness and to ensure a sufficient understanding of historical utility operations. The data collection and review process will be ongoing throughout the process as the need for additional information arises.

Development of Land Use Assumptions
Task 3.3 – Land Use Assumptions
Land use assumptions (LUA) and City growth projections will need to either be developed by the City using information provided by the census, county association, or a combination of historical information through the City’s building records. This information should include a ten-year projection of residential, multi-family and non-residential land use types included in the City’s General Plan. The projections will include:

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1. Single family by year with specific consideration to:
a. Land use forecast will be provided by planning area or any sub regions that has been designated by the City.
b. Compare and identify differences between land use assumptions and the General Plan for the projection period.

Development of Capital Improvement Plan and Review Land Use Assumptions Task 3.4 – Develop Capital Improvement Plan (CIP)
Below are the activities associated with the development of the CIP incorporating the results of the above related task.

1. Upon completion of the population projections and the land use analysis, we will:
a. Discuss potential service area designations determined by City staff to be served by current and new facilities based on land use assumptions.
b. Review capital projects for a ten-year period based on population projections and land use assumptions

2. Land use assumptions and City growth projections will be provided by the City and will be for the next ten years for residential, multi-family, and non-residential land use types included in the City’s most recent General Plan. If available, the projections will include:
a. Single family housing units.

3. Once requested data is provided and evaluated in previous tasks, we will meet with City staff to discuss future projects that are proposed to be funded by connection fees; we will discuss the following:
a. Guidance within California State Statutes affecting facilities eligible for connection fee recovery. b. Existing service level information provided in previous tasks.

Based on the review of key data, discussion with City staff and subsequent evaluations the Willdan Team will recommend the development impact fee methodology and approach as the basis for calculations.

Calculation of Capacity/Connection Fees
Task 3.5 – Calculate Capacity/Connection Fees
To calculate the Capacity/Connection fees for the City, we will:

1. Review the current capacity of the system (for example gallons per capita per).

2. Identify offsets for growth-related revenue to be used toward available capacity will be taken into consideration for the calculations for the study period.

3. Develop fees by services area based on level of service standards per housing as determined in the above task.

Once preliminary fee calculations are complete, we will review the results with City staff to apply modifications to the underlying analysis and prepare recommended fee schedules.

Preparation of Reports and Proposition 218 Notices
Task 4.1 – Reports and Deliverables
Task 4.1.1 – Preliminary Draft Report. A draft report will be developed to address study findings and proposed recommendations. Contents will also include and executive summary, methodologies used, assumptions relied upon for the projection of customers and usage characteristics, an overview of current and projected financial performance, including revenue requirements, revenues, expenses, capital costs, operating results, the cost recovery profile for each class, the results of the fully allocated cost of service analyses and any proposed adjustments to the utility rates. Upon completion, an electronic PDF copy, and five (5) hard copies, if necessary, of the draft report will be provided to staff for review. The report and presentations will also include a comparison of the City’s current and proposed water rates with five other public agencies.

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Task 4.1.2 – Final Report. Based on comments received from staff and other participants during the presentation of the Preliminary Draft Report, the Final Report will be revised to incorporate the agreed upon changes. Upon completion, an electronic PDF copy, and five (5) hard copies, if necessary, of the Final Rate Study Report, as well as the dashboard model spreadsheet will be provided to the City.

Task 4.2 – Proposition 218 Notice Preparation and Mailing Task 4.2.1 – Proposition 218 Notices. Based on our more than 25-year history with Proposition 218 compliance, we will assist with the drafting of the notices and complete one (1) mailing, as required by Prop 218. The mailing will include an English version of the notice, as well as a Spanish translation to be provided by the City. The Prop 218 notice will explain:
▪ The purpose of the rates;
▪ The reason for the increases;
▪ How the rates are structured;
▪ The date, time, and place of the public hearing; and
▪ Details on what constitutes the existence of a majority protest, as it relates to the implementation of a new/increased utility rate structure.

Communicating Results - Presentations & Meetings
Task 5.1 – Meetings and Presentations
Task 5.1.1 – Project Kick-Off. As detailed in Task 1.2, an in-person kickoff meeting will be scheduled with City Staff and other City Consultants at the start of the project to discuss project requirements, finalize project scheduling/milestones and reporting requirements, and receive overall project direction. This discussion will provide the opportunity to review current utility rates, fees, charges, issues, and deficiencies with staff.

Task 5.1.2 – Project Progress Web Conferences. During the project, and prior to meetings with the City Council, team web conferences will be scheduled to present the progression of the analysis to staff in order to obtain input and feedback associated with any rate adjustments that may be presented. These web meetings will assist in the completion of rate design for the utility systems and guide the development of the draft report.

Task 5.1.3 – Public Outreach Meetings. As necessary, we will work with City Staff to develop a public outreach strategy and materials, should communications beyond the Proposition 218 notice be required. We will attend one (1) public outreach community meeting.

Task 5.1.4 – Draft Financial Plan Meeting. The results of the Preliminary Financial Plan and Revenue Requirements will be presented to staff for comment, feedback, and direction.

Task 5.1.5 – Draft Study/Final Report Meetings/Public Hearing. The draft report will be reviewed with City Staff to discuss findings and recommendations, gather feedback and address questions, then presented to the City Council.

The results of the Final Report will be presented to the City Council during one (1) City Council meeting, and then again at the (1) Public Hearing, as required by Proposition 218. Willdan’s project manager will be present to address any questions or concerns raised during the public hearings.

City Staff Support / Responsibilities
Willdan recommends that the City of Seaside assign a key individual as a project manager. As our analysis is developed, the City’s appointed project manager will:
1) Coordinate responses to informational requests;
2) Coordinate review of work products; and
3) Identify appropriate staff members for participation in meetings and facilitating scheduling.

We will ask for responses to initial information, follow-up requests and comments on reports within five business days or otherwise agreed upon timetable. If there are delays, the project manager will follow up with the parties involved to establish an estimated date for the delivery of information and/or feedback. To ensure continued progression, the project manager will reconvene with the rest of the team to identify tasks that can be started while waiting for requested data.

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Water Rate and Connection Fee Study A
City of Seaside, California
Exhibit - Resumes
Chris Fisher
Principal-in-Charge / Project Manager
Mr. Chris Fisher has been selected to serve as principal-in-charge and project manager of the City’s engagement. He possesses extensive knowledge specific to Proposition 218 compliance.

Mr. Fisher is a Willdan Financial Services Vice President and Financial Consulting Services group Director. With 24 years at Willdan, he has managed an array of financial consulting projects for public agencies throughout California, Arizona, Texas, Colorado, and Florida; coordinating the activities of resources within Willdan, as well as those from other firms working on these projects.

Select Relevant Experience
City of Lakeport, CA – Water and Wastewater Fee Study: Mr. Fisher led the engagement for Lakeport in the role of the principal-in-charge. The project included the completion of a comprehensive financial model, with multiple iterations and alternatives to address a situation where the City had not increased rates in several years. He led discussions with staff to outline the options and make adjustments as necessary. He also worked closely with the City and its legal counsel to update rates and to incorporate tiers while ensuring compliance with Proposition 218 and the San Juan Capistrano Court decision.

City of Grover Beach, CA – Water and Wastewater Rate Study: In the role of principal-incharge, Mr. Fisher led the City’s utility rate study, which included the preparation of a comprehensive financial plan, along with cost-of-service analysis and development of updated rates. The financial plan prepared contained various options and scenarios for City Staff’s consideration, including shifting from a uniform water rate structure to either a twoor three-tiered structure. The City’s utilities were in relatively good health, so major increases were not recommended.

City of Dinuba, CA – Water and Wastewater Rate Study: Mr. Fisher is leading the City of Dinuba engagement. The objective of the study is to update water and wastewater rates to address significant capital needs for both utilities, and ensure rates provided adequate funding for ongoing operations and maintenance. Rates had not been increased adequately in several years, so considerable planning and evaluation of rate and revenue options were included in the project. Work included development of a comprehensive financial model and preparation of rate scenarios for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council, and the Public Hearing is scheduled for September 2023.

City of Guadalupe, CA – Water and Sewer Utility Rate Study: Mr. Fisher served as the principal-in-charge for the City’s recent water and sewer rate study, providing technical assistance throughout the project, conducting working discussions with City Staff to evaluate financial and rate options, and coordinating the project. He oversaw the development of the comprehensive financial plan, and preparation of rate alternatives and analysis. This engagement included the development of a comprehensive financial model and updated water and sewer rates, including identification of the rates of comparable jurisdictions and a comparative rate and cost analysis.

Education
Bachelor of
Science, Finance;
San Francisco
State University
Areas of Expertise
Multi-disciplinary Team
Management
Special District
Formations
Cost of Service Studies
Proposition 218
Utility Rate Studies
Affiliations
California Society of
Municipal Finance
Officers
Municipal Management
Association of
Northern California
California Municipal
Treasurers Association
24 Years’
Experience
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Water Rate and Connection Fee Study B
City of Seaside, California
City of Richmond, CA – Wastewater Rate Study: Mr. Fisher led the City of Richmond engagement as the principal-in-charge. The objective of the study was to prepare a comprehensive financial plan and updated wastewater rates to address funding for capital and operating needs. The effort included development of a comprehensive financial model and report, and preparation of rate scenarios, including revised scenarios to address the impacts of the COVID pandemic, for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council, whereby rate increases were approved.

City of Calexico, CA — Water & Sewer Utility Rate Study: Mr. Fisher served in the role of principal-in-charge of the City’s comprehensive water and sewer rate study. He led the development of the financial plan and model, and the rate analysis, and participated in the presentation of results to City Staff and the City Council. His responsibilities also included the scheduling of key meetings and deliverables, review of progress throughout the development of the project, and quality control.

City of Lomita, CA — Water Rate Study: Mr. Fisher is the assigned principal-in-charge for the City’s Water Rate Study. This project is ongoing, with initial development of the financial model and rate alternatives completed. The City is currently updating estimates for several key capital projects, which will be incorporated into the analysis before finalizing rates. The remainder of the study will entail completion of the report, Prop 218 notices, and attendance at Council meetings and the Public Hearing.

City of Claremont, CA — Sewer Rate Study: Mr. Fisher was the principal-in-charge for the City’s sewer rate study. The team generated multiple alternative rate structures for the City in preparation of updating their sewer utility rates and presented them to staff for their consideration.

McKinleyville Community Services District, CA – Water and Wastewater Capacity Fee Study:

Mr. Fisher served as principal-in-charge of this project. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District’s service boundaries.

Town of Apple Valley, CA — Wastewater Rate Study: Mr. Fisher oversaw a comprehensive wastewater rate study for the Town. The study encompassed the preparation of a financial plan and rate model, and a thorough review and update of the Town’s rate structure. The Town had seen significant scrutiny of its water rates, so it wanted to be sure the wastewater rates and the report were thorough and defensible. The Town uses an EDU based rate structure, which Willdan evaluated and adjusted where necessary. This engagement also included comparison of current and proposed rates, and rates of similar agencies. Mr. Fisher provided technical assistance throughout this project, including the preparation of the rate report. The analytical portion of the project is complete and pending the completion of the Proposition 218 approval process.

C. Fisher
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Water Rate and Connection Fee Study C
City of Seaside, California
Education
Bachelor of Arts and
Science; University of
Central Florida
Areas of
Expertise
Utility Rate Studies
User Fee Studies
Financial Forecast
Modeling
5 Years’
Experience
Michael Cronan
Lead Financial Analyst
Mr. Michael Cronan is a Project Manager with five years of experience within Willdan’s Financial Consulting Services group. His primary function is to support the principal-incharge with utility rate studies and other financial analysis. He specializes in analysis for a variety of clients, including cities, water districts, and public utilities.

Select Relevant Experience
City of Lakeport, CA — Water and Sewer Rate Study: Mr. Cronan provided analytical support to the senior project team members and led the development of the financial model as the project analyst for the City’s ongoing utility rate study. He worked directly with staff at the City to evaluate financial plan alternatives, particularly for sewer where years of deferred rate increases, and a significant capital plan required careful consideration. He also led the revamp of the City’s cost-of-service approach, working closely with a leading Prop 218 attorney, to ensure rates were compliant with State law.

City of La Palma, CA — Water and Wastewater Utility Rate Study: Mr. Cronan was assigned to the La Palma engagement as the lead financial analyst. He worked directly with staff at the City to conduct financial analysis, which included the evaluation of alternatives for rate adjustments that incorporated different capital funding scenarios and operating budget assumptions, as well as the preparation of reports and Prop 218 documents. He was also instrumental in the development of the financial model.

City of Dinuba, CA – Water and Wastewater Rate Study: Mr. Cronan is leading much of the technical analysis and model development for the City of Dinuba study. The objective of the study is to update water and wastewater rates to address increasing costs of operation and staffing, as well as significant capital needs for both utilities. Recommended rates need to provide adequate funding for ongoing operations and maintenance, as well as anticipated new debt. Rates had not been increased in several years, so considerable planning and evaluation of rate and revenue options was necessary. Our work included development of a comprehensive financial model and preparation of rate scenarios for evaluation by staff and the City Council. The project team presented the results to the City Council in June and July of 2023, and the Public Hearing is scheduled for September 2023.

City of Guadalupe, CA – Water and Wastewater Rate Study: Mr. Cronan provided analytical support for the City’s utility rate study. He was responsible for gathering and verifying data, as well as assisting with the development of the model. He also worked directly with City Staff to present results and options and develop alternatives.

City of Richmond, CA — Wastewater Rate Study: Mr. Cronan served as the project analyst and provided support for the City’s rate study. He gathered and verified data for the project manager and lead project consultant and played a significant role in the development of the customer database and financial model.

McKinleyville Community Services District, CA — Water and Sewer Utility Rate Study:

Willdan was retained to update the models, develop the CSD’s water and sewer rates and assist with the required Proposition 218 noticing process. Mr. Cronan provided analytical support to the project’s senior team and is providing the same support for the ongoing update to the previous study.

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Water Rate and Connection Fee Study D
City of Seaside, California
City of Claremont, CA — Sewer Rate Study: Mr. Cronan provided analytical support for the City’s sewer rate study. He gathered and verified data for the project manager and principal consultant.

City of Twentynine Palms, CA — Sewer Treatment Facility Fair Share and Sewer Rate Analysis: Mr. Cronan provided analytical support in the development of the model to support to the project’s senior team on the City of Twentynine Palms’ sewer treatment facility fair share analysis. This study also included a sewer rate study, specific to the new treatment plant and its customers.

City of Denver, CO — Sanitary Sewer and Storm Drainage Benchmarking and Storm Drainage Impact Fee Study: Mr. Cronan served as the lead analyst on a benchmarking study to review and compare the City’s current rate structures to those of other front range and national utilities. The intent of the study was to identify potential areas for refinement to the City’s current rate structures. Mr. Cronan also served as the lead analyst for developing and implementing first time storm drainage impact fees for the City.

City of Fruita, CO — Sewer Rate Study: Mr. Cronan provided analytical support to the project manager and principal consultant for the City’s comprehensive sewer rate study. The study sought to determine the costs of operating the utility for a five-year period while equitably recovering costs from each customer class. An evaluation of changing the current flat rate approach for residential customers to a volume based average winter consumption approach was also evaluated.

City of College Station, TX — Electric Rate Study: Mr. Cronan was the analyst for the City’s electric retail rate and cost-of-service study.

GRU/Gainesville, FL — Combined Utility Rate Project: Mr. Cronan assisted senior project staff on Willdan’s recent combined utility rate project conducted for Gainesville Regional Utilities, in Gainesville, Florida and included a comprehensive revenue requirement, cost of service analysis, and rate design for their electric, water, wastewater, and natural gas utility systems.

City of Oviedo, FL — Utility System and General Financial Services: Mr. Cronan provides analytical support to the project team members serving the City’s on-call engagements for Utility System and Financial Services.

M. Cronan
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Water Rate and Connection Fee Study E
City of Seaside, California
Kevin Burnett, MA
Technical Advisor and Quality Control Manager
Mr. Kevin Burnett is a Principal Consultant with 22 years of utility analysis experience, possessing extensive experience with utility rate and cost of service studies for retail and wholesale use. His project experience includes water, wastewater, reuse, and stormwater rate studies using state-of-the-art utility financial planning tools. He has developed both short and long-term financial plans for utilities of all sizes – including regional water authorities and regional wastewater providers with individual wholesale service contracts.

Select Relevant Experience
City of Avenal, CA — Water and Sewer Rate Study: Served as project manager for the City’s rate study. The objectives of this analysis were to develop a tiered rate structure for customers that: 1) generate sufficient revenues to meet operating and capital expenses associated with water in response to the rising cost of purchased water; 2) technically defensible and equitable across the customer classes (meeting Proposition 218 requirements); and 3) developed within spreadsheet models that are user-friendly and can be easily updated by City staff in the future.

City of Sebastopol, CA — Water and Wastewater Fee Study: Mr. Burnett served as the lead project consultant for Sebastopol’s water and wastewater utility rate study. The objective of the study was to update water and wastewater rates to address capital needs for both utilities, and ensure rates provided adequate funding for ongoing operations and maintenance. Mr. Burnett led the development of the financial model and scenarios for the City and presented the report and results to the Council.

City of Grover Beach, CA – Water and Wastewater Rate Study: Mr. Burnett led the City’s water and wastewater rate study, which included the preparation of a comprehensive financial plan, along with cost-of-service analyses and development of updated rates. He presented the financial plan and outlined the various options and scenarios for City Staff’s consideration, including shifting from a uniform water rate structure to a two-tiered structure.

City of Tulare, CA — Water and Wastewater Rate Study: As project manager Mr. Burnett led the model and rate development, in addition to facilitating presentations to both the City Council and Public Utilities Board in preparation of the City’s water and wastewater utility rates. He generated updated rate structures for the City, which met the requirements of Proposition 218.

Town of Apple Valley, CA — Wastewater Rate Study: Mr. Burnett was the technical project lead for the comprehensive wastewater rate study for the Town. The study encompassed the preparation of a financial plan and rate model, and a thorough review and update of the Town’s rate structure. The Town uses an EDU based wastewater rate structure, which Willdan evaluated and adjusted where necessary. Mr. Burnett created the financial and rate model and completed the technical analysis and preparation of the report and other study documents. He worked extensively with the Town’s legal counsel on the report to ensure that it provided the necessary level of detail to support defensibility. The analytical portion of the project is complete and pending the completion of the Proposition 218 approval process.

Education
Master of Arts,
Economics, State
University of New York,
Buffalo
Bachelor of Arts,
University of Waterloo,
Ontario
Areas of Expertise
Financial Planning
Cost of Service Studies
Rate Design
Impact Fees
Bond Feasibility
Affiliations
American Water Works
Association
22 Years’
Experience
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Water Rate and Connection Fee Study F
City of Seaside, California
City of Dinuba, CA – Water, Sewer, and Solid Waste Rate Study: Mr. Burnett served as an analyst on the City’s previous study. The City had undergone a period of declining net revenues and an inability to fully fund capital repair and replacement needs. In the role of lead analyst, Mr. Burnett worked with City Staff to update the rate structures to ensure class cost of service-based water rates that promote conservation and adhere to Proposition 218 requirements. Multiple water and sewer financial plans were developed and presented to Council for consideration.

City of Claremont, CA — Sewer Rate Study: As project manager for the City’s sewer rate study, Mr. Burnett led the model and rate development and facilitated stakeholder presentations. He generated multiple alternative rate structures for the City in preparation of updating their sewer utility rates and presented them to staff for their consideration.

Ultimately, numerous scenarios and alternatives were explored before deciding on the selected approach.

City of Fillmore, CA — Water and Sewer Rate Study: The City’s rates were outdated and not generating sufficient revenue needed to operate, maintain, and enhance the system. As project manager, Mr. Burnett led the Willdan team and worked closely with the City, to redesign the rate structure. The Willdan team was responsible for the model and rate development, and generation of multiple alternative rate structures.

City of Calexico, CA — Water and Sewer Rate and Capacity Fees Study: As lead project consultant, Mr. Burnett conducted a water and sewer rate study for the City of Seaside.

Their previous rate study was dated, and the City wished to complete a new study to meet future revenue requirements and planned substantial capital improvement projects, and to make sure new rates followed Prop 218 cost of service requirements. The City also requested the establishment of capacity fee charges. Mr. Burnett created the financial and rate model, completed the technical analysis, and worked through financial scenarios and options with City Staff. He was also responsible for the preparation of the report and other study documents.

City and County of Denver, CO — Sanitary Sewer and Storm Drainage Rate, Connection Fee and Bond Feasibility Study: Mr. Burnett served as project manager and lead analyst for a six-year financial analysis of the City’s Wastewater Enterprise Fund. The study included projection of rate increases to maintain the financial viability of the Enterprise Fund. Mr.

Burnett worked closely with City staff and the City’s financial advisor to conduct a bond feasibility analysis in support of a $50 million revenue bond debt issuance to refund a prior debt issue and provide new money for future capital needs. The City’s sanitary sewer connection fees were reviewed and updated to reflect the City’s cost of providing new infrastructure to provide service to new connectors.

The City and County of Denver recently engaged Willdan to conduct a new study to review the operations of the sanitary sewer and storm drainage utilities and complete a benchmarking analysis to other front range and national entities in terms of rate structures and billings. The purpose of the study was to identify refinements or improvements to the City’s current approach to billing. A second study to develop feasibility of the City’s potential first time storm drainage impact fees was undertaken in conjunction with the benchmarking study.

K. Burnett
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EXHIBIT B

FEE SCHEDULE
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T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com July 18, 2023
Ms. Kristin van Gend
Administrative Analyst II
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
Re: Cost Proposal to Provide Water Rate and Connection Fee Study for the City of Seaside Dear Ms. van Gend:

Willdan Financial Services (“Willdan”) is pleased to present the following cost proposal to the City of Seaside (“City”) for the Water Rate and Connection Fee Study.

Willdan is excited about this opportunity to serve the City of Seaside. To discuss any aspect of our technical and/or cost proposal.

As a Vice President of Willdan Financial Services, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement. Willdan has read and will comply with all the terms and conditions of the RFP, including insurance requirements.

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director

EXHIBIT B
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Water Rate and Connection Fee Study 1
City of Seaside, California

7. Fee Proposal
Fixed Fee
Based on our work plan provided in the scope of services, we propose a fixed fee of $41,350 for the Water Rate and Connection Fee Study and Proposition 218 services. This fee includes the direct costs for one (1) Prop 218 notice mailing, which will include copies of the notice in English and Spanish, with the Spanish translation provided by the City. The direct costs include the printing, processing and postage for the notices.

The table below provides a breakdown of this fee by task and project team member.

C. Fisher
PIC/PM
K. Burnett
Technical Advisor
M. Cronan
Financial Analyst
$250 $210 $165 Hours Cost
Task 1.1 -Data Collection & Review 2.0 - 8.0 10.0 $ 1,820 Task 1.2 - Kick-off Meeting & Planning Discussion 1.0 - 1.0 2.0 415 Task 2.1 - Financial Plan, Requirements & Determinants 8.0 2.0 40.0 50.0 9,020 Task 2.2 - Capital Plan Analysis 2.0 1.0 4.0 7.0 1,370
Task 2.3 - Cost-of-Service Allocations 2.0 2.0 6.0 10.0 1,910 Task 2.4 - Rate Analysis & Design 4.0 2.0 12.0 18.0 3,400 Task 3.1 Data Collection 1.0 - 3.0 4.0 745
Task 3.2 Data Review 1.0 - 2.0 3.0 580
Task 3.3 Land Use Assumptions 1.0 1.0 6.0 8.0 1,450
Task 3.4 Develop CIP 1.0 1.0 4.0 6.0 1,120
Task 3.5 Calculation of Connection Fees 2.0 2.0 16.0 20.0 3,560 Task 4.1 - Reports & Deliverables 6.0 1.0 40.0 47.0 8,310 Task 4.2 - Proposition 218 Notice Preparation 8.0 - 2.0 10.0 2,330 - - - 2,000
Task 5.1 - Meetings & Presentations 8.0 - 8.0 16.0 3,320 Total Fee Proposal 47.0 12.0 152.0 211.0 $ 41,350
City of Seaside
Water Rate and Capacity/Connection Fee Study
Fee Proposal
Communicating Results - Presentations & Meetings
Water Rate Study
Scope of Work
Total
Project Initiation
Capacity / Connection Fee Study
Preparation of Reports and Proposition 218 Notices
Proposition 218 Services - Printing, Processing, and Mailing Packet Page 76 Water Rate and Connection Fee Study 2
City of Seaside, California
Notes
▪ The City will be invoiced on a monthly percentage-completion basis. ▪ Invoices will include a description of services, as well as a summary of costs to date by task. ▪ We will perform additional tasks, outside our scope of services, as requested and authorized by the City for an additional fee.
▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete our analysis.

Willdan will rely on the data as being accurate without performing an independent verification of accuracy, and that we will not be responsible for any errors that result from inaccurate data provided by the client or a third party.
▪ The City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to the City or relating to this project. Reimbursement shall be at Willdan's rates in effect at the time of such response.

Hourly Rates
Additional services may be authorized by the City and will be billed at our then-current hourly rates. Our current hourly rates are listed below.

Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate
Vice President - Director Chris Fisher $250
Managing Principal $240
Principal Consultant Kevin Burnett $210
Senior Project Manager $185
Project Manager Michael Cronan $165
Senior Project Analyst $135
Senior Analyst $125
Analyst II $110
Analyst $100
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Water Rate and Connection Fee Study 3
City of Seaside, California
Project Disclaimer
The City of Seaside further represents, acknowledges, and agrees that:
(i) The City uses the services of one or more municipal advisors registered with the U.S. Securities and Exchange Commission (“SEC”) to advise it in connection with municipal financial products and the issuance of municipal securities;
(ii) The City is not looking to Willdan to provide, and City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues); (iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder; (iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

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27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com
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EXHIBIT C

INSURANCE REQUIREMENTS
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2023 WATER RATE AND CAPACITY FEE STUDIES EXHIBIT C

EXHIBIT C

INSURANCE REQUIREMENTS
Without limiting Consultant’s indemnification of Agency, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Agency.

Note: Verify minimum limit for each coverage with Risk Manager.

General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

Note: May need to delete workers' compensation and employer's liability insurance requirements for certain sole proprietorships, partnerships, or corporations without employees.

Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

Consultant shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees and volunteers.

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2023 WATER RATE AND CAPACITY FEE STUDIES EXHIBIT C
Note: If the required limits for general liability, auto and employer’s liability are $1 million or less, the following paragraph may be omitted.

Umbrella or excess liability insurance. [Optional depending on limits required].

Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.

Other provisions or requirements
Proof of insurance. Consultant shall provide certificates of insurance to Agency as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance.

Current certification of insurance shall be kept on file with Agency at all times during the term of this contract. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Consultant, his agents, representatives, employees or subconsultants.

Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Agency shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the Agency’s own insurance or self-insurance shall be called upon to protect it as a named insured.

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2023 WATER RATE AND CAPACITY FEE STUDIES EXHIBIT C
Agency’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Agency has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Agency will be promptly reimbursed by Consultant or Agency will withhold amounts sufficient to pay premium from Consultant payments.

In the alternative, Agency may cancel this Agreement.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.

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

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

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the Agency requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Agency.

Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

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2023 WATER RATE AND CAPACITY FEE STUDIES EXHIBIT C
Additional insured status. General liability policies shall provide or be endorsed to provide that Agency and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing.

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to Agency for review.

Agency’s right to revise specifications. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the Agency and Consultant may renegotiate Consultant’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by Agency. Agency reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by Agency.

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

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

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EXHIBIT D

REQUEST FOR PROPOSAL
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REQUEST FOR PROPOSAL
FOR

PROFESSIONAL SERVICES FOR
2023 WATER RATE AND CAPACITY FEE STUDIES

SEASIDE MUNICIPAL WATER SYSTEM
JUNE 2023
Submit proposal to:

Public Works Engineering
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
PROPOSALS DUE BY 3:00 P.M. THURSDAY, July 20, 2023

EXHIBIT D
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Table of Contents
I. INTRODUCTION AND BACKGROUND ............................................................................ 3 II. SCOPE OF WORK.............................................................................................................. 3 III. STUDY REQUIREMENTS ................................................................................................ 5 Rate Study Requirements............................................................................................................ 5 Capacity Fee Study Requirements.............................................................................................. 5 IV. STUDY ELEMENTS .......................................................................................................... 6 V. FORM AND CONTENTS OF PROPOSAL....................................................................... 6

1. Cover Letter ......................................................................................................................... 6

2. Project Team........................................................................................................................ 7

3. Relevant Project Experience ................................................................................................ 7

4. Project Understanding and Approach .................................................................................. 7

5. Project Schedule................................................................................................................... 7

6. Scope of Services................................................................................................................. 8

7. Fee Proposal......................................................................................................................... 8 VI. PROCEDURES FOR SUBMISSION ................................................................................. 8 VII. REVIEW AND SELECTION PROCESS ........................................................................... 9 VIII. ACCEPTANCE OR REJECTION OF PROPOSAL ..................................................... 10 IX. ADDENDA AND INTERPRETATION ........................................................................... 10 X. GENERAL DESCRIPTION OF PROPOSED AGREEMENT......................................... 10 XI. INSURANCE REQUIREMENTS..................................................................................... 10 XII. EXAMINATION OF PROPOSED MATERIAL.............................................................. 11 XIII. PUBLIC NATURE OF PROPOSAL MATERIAL ....................................................... 11 XIV. DISQUALIFICATION .................................................................................................. 11 XV. NON-CONFORMING PROPOSAL................................................................................. 12 XVI. PROHIBITION OF GIFTS............................................................................................ 12 XVII. NON-DISCRIMINATION/NON-PREFERENTIAL TREATMENT........................... 12 XVIII. ADDITIONAL TERMS AND CONDITIONS ............................................................. 12 XIX. ATTACHMENTS .......................................................................................................... 13 Packet Page 87
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I. INTRODUCTION AND BACKGROUND
The City of Seaside, California is soliciting proposals from qualified consulting firms to prepare an update to the water rate and capacity fee studies completed 2019 and 2020, respectively. The selected consultant shall perform the tasks specified in the "Scope of Work" section of the Request for Proposals (RFP). The consultant is encouraged to suggest additions or modifications to the scope that will enhance or clarify the work and the suggestions should be incorporated into the proposal.

The Seaside Municipal Water System (SMWS) is comprised of approximately 800 service connections1 serving approximately 3,300 customers. The water system consists of one water well, two water tanks (500,000 gallons each) and seven miles of distribution piping. The water system serves the northeast portion of the City of Seaside and is bounded by La Salle Avenue to the north, Hilby Avenue to the south, Yosemite Street to the west and General Jim Moore Boulevard to the east. The system was originally constructed in 1966, with additions and improvements added over time. The service area is built-out, with new connections limited to accessory dwelling units.

The City operates the water system as an Enterprise Fund. Upgrading of the system is funded through revenues in excess of maintenance and operation expenses. The majority of revenue comes from billings for consumption and meter charges. A very small portion of revenue comes from service installations, interest income, and other miscellaneous income sources. California America Water Company (Cal Am) and Marina Coast Water District (MCWD) are the water utility purveyors that serve the remaining Seaside residents.

The SMWS uses groundwater from the Seaside Groundwater Basin, which is an adjudicated basin.

The Seaside Basin Watermaster was appointed to establish a Comprehensive Monitoring and Management Plan to address over-use of the resource, which includes a plan for reducing pumping from the Basin that curtails the City’s water production in accordance with a ramp down schedule.

Fees and assessments are levied on SMWS by the Watermaster. The City recently converted its golf course from groundwater to recycled water irrigation.

The City is currently updating the Water System Master Plan and Water Capital Improvements Program. These products are expected to be completed and available to the rate study consultant by August 2023.

II. SCOPE OF WORK

1. Review current rates and fees associated with water services. Conduct a detailed review of the existing water rates and status of the water fund, and develop a general familiarity with the Seaside Municipal Water System’s billing system.

2. Review Seaside Municipal Code and other appropriate laws, as necessary 1 The connections include Single Family Residential, Multi-family Residential, Churches, Schools, Landscape Irrigation, and the City Fire Department.

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3. Review Seaside Municipal Water System financial records. Identify existing and proposed expenses.

4. Review current charges and propose charges that will ensure recovery of actual costs associated with services provided.

5. Prepare schedule of proposed rates and charges that will ensure recovery of estimated costs five years into the future. Incorporate estimated costs for; I. Capital Improvement Plan,
II. Operation and maintenance of the system, and
III. Implementing the City’s obligations under the Court Order.

6. Review current debt service and five-year capital improvement projects, and propose financing action plan for current status, as well as increases in future debt service from financing of capital improvement projects.

7. Provide a comparison of current and proposed water rates and capacity charges against surrounding public agency water purveyors.

8. Prepare administrative draft, draft, and final study reports summarizing work performed and recommendations.

9. Present the draft report at a public meeting and a meeting of the Seaside City Council.

10. Prepare Proposition 218 notices to rate payers in accordance with California requirements.

Provide to the city in a digital word document for distribution. The City will print and distribute the notice to the customers.

11. Present final report at a public hearing of the Seaside City Council implementing the adopted rates.

12. Review the City’s existing water capacity charges as well as related policies and procedures. Work with staff to identify objectives for new or modified capacity charge.

13. Review and summarize capacity charges of other regional and comparable agencies.

Summarize results in easily understandable tables and/or charts.

14. Identify and evaluate methods for calculating capacity charges. Discuss advantages and disadvantages with the project team and determine a recommended approach.

15. Equitably allocate capital improvement costs to existing and future users based on input from City staff and/or its consulting engineers. Some projects may entirely benefit one group while others will benefit both existing customers and provide new capacity for growth.

16. Based on appropriate and technically sound methodology, recommend revisions to the current water capacity charges based on the data developed above. Look at basing the fees on water meter size, estimated water demand or other appropriate method.

17. Recommend a method to annually or periodically adjust capacity charges and miscellaneous charges so they keep aligned with future costs. For example, capacity Packet Page 89
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charges can be adjusted annually based on the change in the Engineering News-Record’s Construction Cost Index, a widely used measure of construction cost inflation.

III. STUDY REQUIREMENTS
Rate Study Requirements
The study is to be performed in conformance with the following policy directions:

1. The recommended rate structure shall build upon the current rate structures, Attachments 1 and 2.

2. Identify those portions of water system revenues that fund water system operating and capital costs.

3. The rate study shall recommend a rate structure that considers and makes provisions for the following factors:
a. Current and future cost of providing water service in accordance with established and anticipated standards and regulations.
b. Projected customer demands for water.
c. Availability of water supplies.
d. Include rate tiers based upon irrigation load at non-residential (e.g. institutional) accounts.
e. Include tiers to incentivize conservation.
f. Requirements of the Seaside Municipal Code, California law, State Water Resources Control Board (SWRCB) revenue program guidelines and other guidelines that may apply.
g. Rate structure shall consider incorporation of Seaside Watermaster expenditures including overproduction charges.
h. Equity such that, as nearly as practical, each customer would pay their fair share of the costs of providing services received.

4. The recommended rate structures shall be consistent with applicable rate making provisions for city-owned utilities in California.

5. Provide a comparison of current water rates to surrounding public agency water purveyors.

6. The recommended rate structure shall support rate stabilization and capital expenditure funds.

7. The recommended rate structure shall be easy to administer considering the limits of the billing system.

8. The recommended rate structure shall be based upon a five-year planning horizon.

Capacity Fee Study Requirements
The study is to be performed in conformance with the following policy directions:

1. The capacity fee (or new connection fee) should be based upon a system buy-in component and a capital improvement program cost share.

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2. Separate connection fees may be proposed for water service meters and fire services.

IV. STUDY ELEMENTS
In making its rate structure recommendations, the final report shall explicitly include the following elements and analysis:

Current rate structure. Assess the current rate structure’s performance as a baseline for comparing recommended changes.

Equity. Assess the equity of recommended water rates for all types of property ownerships and users.

Revenue Sufficiency. Assess existing rates and charges and identify other potential expense areas including water system maintenance requirements and recommend changes, if appropriate.

Annual Operating and Capital Replacement Fund Balance Targets. Recommend reserve levels for operating and capital replacement as well as cash flow and unforeseen events.

Capital Improvement and Increased Debt Service. Recommend financing action plan to cover existing five-year Capital Improvement Projects and future years included in the Seaside Municipal Water System Master Plan document as well as increases in debt service.

Watermaster Fees and Assessments. Recommend rate structure that recovers Seaside Basin Watermaster fees and replenishment assessment.

Capacity Fee Study. Recommend connection fees that reflect the impact of the added water demand on the existing system.

V. FORM AND CONTENTS OF PROPOSAL
Proposals shall consist of responses to the sections below. Please clearly label and respond to all sections. The submissions are subject to a page limitation of fifteen (15) pages (front-side only) in twelve-point font. The cover letter, table of contents, front and back covers, and section dividers and resumes are excluded from the page count. Proposers are requested to enclose certain information as exhibits, which will not count against the page limit and may also attach additional information as exhibits (which also will not count against the page limit). The City makes no assurances that any non-requested additional information in exhibits will be reviewed. The proposal shall be bound, with tabbed section dividers, and include the following sections in order within the page limitations:

1. Cover Letter
Include the primary consultant’s name and business address, as well as the Project Manager’s name, telephone number and email address. Summarize your understanding of the project and briefly introduce your team. The cover letter shall be signed by the person authorized to negotiate Packet Page 91
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a contract for proposed services with the City of Seaside on behalf of submitting firm/team.

Address any exceptions to the Insurance and Indemnification requirements listed in Exhibit C of the Standard Consultant Agreement attached hereto as Attachment 5.

2. Project Team
Clearly identify the prime consultant, all subconsultants, and their respective roles. Show the project manager and the key staff proposed for this project, including subconsultants’ staff.

Excluding circumstances beyond the consultant’s control, it is expected that the project team proposed under this proposal will remain unchanged throughout the duration of the Project.

Replacement of key staff, without written approval of the City of Seaside, will not be permitted.

Include contact information and a brief summary of the Prime firm’s organization and history.

Provide a résumé of each key team member. Provide two references (name, title, agency, and telephone number) for the project manager and task leaders from similar type/size projects.

Include contact information and a brief summary of the each subconsulting firm’s organization, history, and two firm references.

Resumes shall be provided as exhibits to your proposal and will not count against the page limit.

3. Relevant Project Experience
Proposers must have a minimum of three (3) years of professional experience in preparing municipal rate studies. They shall have completed a minimum of three (3) projects for public water utilities; shall have demonstrated experience of similar scope projects; and have experience working with public institutions.

Include similar type/size projects that your team has completed. Provide a project description, services provided, consulting fees and the project cost. Discuss whether the assessment was completed on time and within budget. Identify any obstacles encountered and how it was resolved.

4. Project Understanding and Approach
Describe your firm/team’s understanding of the work to be performed and identify the approach for key services and/or issues anticipated for this project. Describe project manager’s and firm/team support and approach to managing project to ensure effort is completed on schedule and within established budget.

5. Project Schedule
Provide a schedule, from start to finish, showing phases and major benchmarks in the scope of work with reasonable completion expectations. Indicate stages of work, time frames, and your team’s ability to perform the required services in a timely manner. Allow three weeks for each submittal review by the City staff in the proposed schedule. Additionally, a progress meeting should be held to correspond immediately after City review of each submittal. Describe project manager’s and firm/team support and approach to managing project to ensure effort is completed on schedule and within established budget.

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6. Scope of Services
Provide a detailed description of the proposed scope of services through rate study approval and adoption of rates. The scope of services submitted with the consultant’s proposal must include a list and number of all deliverables, digital and hard copy, to be provided. Consultant must also plan for the necessary meetings.

7. Fee Proposal
Provide your proposed fee in a separate, sealed envelope, plainly labeled “Fee Proposal” with the prime company’s name and project title. Consultant’s fee proposal must remain active for a time period of no less than two (2) years. Any annual or standard rate increases that may occur within this time period must be clearly defined in the original fee proposal. The fee proposal shall include a cover letter stating the not to exceed fee, and separate fee schedules depicting individual project tasks, staff hours, and basic hourly charge rates. The fee proposal shall reflect all anticipated fee increases during the contract duration. The final contract price may be negotiated.

VI. PROCEDURES FOR SUBMISSION
All correspondence between the City and potential proposers will be by email in accordance with Section VI, “Addenda and Interpretation” below.

Three (3) bound copies of the proposal package are due by 3:00 PM Pacific Time on Thursday, July 20, 2023. The proposal package, including the sealed cost proposal, shall be labeled “2023 Water Rate and Capacity Fee Studies” and submitted to the following address:

Engineering Division
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
Please also submit by e-mail a single Adobe Acrobat® PDF file containing the entire proposal, excluding your cost proposal, to [email protected]. The e-mail subject line should read:
2023 Water Rate and Capacity Fee Studies.

SUBMISSIONS WILL NOT BE ACCEPTED AFTER THIS DEADLINE. SUBMISSIONS

TRANSMITTED BY FAX WILL NOT BE ACCEPTED UNDER ANY
CIRCUMSTANCES.

All material submitted in accordance with this RFP becomes the property of the City and will not be returned.

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VII. REVIEW AND SELECTION PROCESS
The proposed consultant selection schedule is as follows:

Distribution of RFP Thursday, June 15, 2023
Questions Due June 26, 2023
Addendum Issued July 11, 2023
RFP Submittal Deadline July 20, 2023
Proposal Review Period
(Interviews if necessary)
July 21 – August 4, 2023
Consultant Award (tentative) August 17 2023
City staff will evaluate the materials provided in response to the Request for Proposals based on the following criteria:

1. Understanding of the Scope of Work and Consultant’s Proposed Methodology.

2. Delivery Schedule.

3. Past experience and performance of Consultant's team on similar work including:
individuals in the firm assigned to do the work; cost control; quality of work, and meeting scheduled milestone dates.

4. Familiarity with applicable practices and procedures for the work involved.

5. Organization, presentation, and content of proposal. Conformance to the specified RFP format.

6. Familiarity with Locality: Is the firm familiar with water regulations applicable to the City of Seaside? Will the location of the firm’s offices facilitate meetings with City Staff? The City reserves the right to conduct independent reviews and interview firms submitting proposals prior to making any selection. If the City elects, the top proposals may be requested to participate in interviews. If your firm is selected to participate in an oral interview, you will be notified the week prior to the scheduled interview. The City will not be liable for any costs associated with your firm preparing its response to this RFP.

No Proposer will be allowed to modify the content of proposal at any time after the submission deadline, except in direct response to a request from the City for clarification or for an oral interview, provided that no such modification will result in a substantive amendment to the proposal.

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VIII. ACCEPTANCE OR REJECTION OF PROPOSAL
The City reserves the right to accept or reject any and all proposals. The City also reserves the right to waive any informality or irregularity in any proposal. Additionally, the City may, for any reason, decide not to award an agreement as a result of this RFP or cancel the RFP process. The City shall not be obligated to respond to any proposal submitted, nor be legally bound in any manner by the submission of the proposal. The Public Works Department will make a recommendation to the City Manager or City Council, as applicable, regarding the selection of Consultant based upon an evaluation of the proposals. The City reserves the right to negotiate project deliverables and associated costs.

IX. ADDENDA AND INTERPRETATION
The City shall not be responsible for nor be bound by any oral instructions or interpretations or explanations issued by the City or its representatives. Should discrepancies or omissions be found in this RFP or should there be a need to clarify the RFP, you may request clarification in writing or by email and deliver the request to:

Ms. Kirstin van Gend
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
Email: [email protected]
Any other contact with City personnel related to this RFP, prior to the formal appointment of the consultant, is prohibited. Such requests for clarification shall be delivered to the City by June 26, 2023. Any City response to a request for clarification will be made in the form of an addendum to this RFP and posted on the city’s website https://www.ci.seaside.ca.us/Bids.aspx. All addenda shall become part of this RFP.

X. GENERAL DESCRIPTION OF PROPOSED AGREEMENT
Upon conclusion of the RFP process, the Public Works Department will recommend a firm to enter into negotiations for the assignments described. The recommended Proposer shall enter into contract negotiations with the City in substantial conformity with the selected proposal and the form of the City’s Standard Consultant Agreement (Attachment 5).

XI. INSURANCE REQUIREMENTS
The selected Consultant, at Consultant’s sole cost and expense and for the full term of the Agreement or any extension thereof, shall obtain and maintain at least all of the insurance Packet Page 95
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requirements outlined in Exhibit C to the City’s Professional Services Agreement (Attachment 5).

All policies, endorsements, certificates, and/or binders shall be subject to approval by the City of Seaside as to form and content. The selected Consultant agrees to provide the City with a copy of said policies, certificates and/or endorsements on the requested forms. The selected Consultant shall satisfy these insurance requirements prior to approval of the Agreement. Please address any issues with respect to insurance requirements in your response in Section II, above.

XII. EXAMINATION OF PROPOSED MATERIAL
The submission of a proposal shall be deemed a representation and certification by the Proposer that they have investigated all aspects of the RFP, that they are aware of the applicable facts pertaining to the RFP process, its procedures and requirements, and that they have read and understood the RFP. No request for modification of the statement shall be considered after its submission on grounds that the Proposer was not fully informed as to any facts or condition.

XIII. PUBLIC NATURE OF PROPOSAL MATERIAL
Responses to this RFP become the exclusive property of the City. At such time as the Public Works Department recommends a Proposer to the City Manager or City Council, as applicable, all proposals received in response to this RFP become a matter of public record and shall be regarded as public records, with the exception of those elements in each proposal which are defined by the Proposer as business or trade secrets and plainly marked as “Confidential,” “Trade Secret,” or “Proprietary.” The City shall not in any way be liable or responsible for the disclosure of any such proposal or portions thereof, if they are not plainly marked as “Confidential,” “Trade Secret,” or “Proprietary” or if disclosure is required under the Public Records Act. Any proposal which contains language purporting to render all or significant portions of the proposal “Confidential,” “Trade Secret,” or “Proprietary” shall be regarded as non-responsive.

Although the California Public Records Act recognizes that certain confidential trade secret information may be protected from disclosure, the City of Seaside may not be in a position to establish that the information that a Proposer submits is a trade secret. If a request is made for information marked “Confidential,” “Trade Secret,” or “Proprietary,” the City will provide the Proposer who submitted the information with reasonable notice to allow the Proposer to seek protection from disclosure by a court of competent jurisdiction.

XIV. DISQUALIFICATION
Factors such as, but not limited to, any of the following may be considered just cause to disqualify a proposal without further consideration:

A. Evidence of collusion, directly or indirectly, by Proposer in regard to the amount, terms, or conditions of this proposal;
B. Any attempt to improperly influence any member of the selection staff; Packet Page 96
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C. Existence of any lawsuit, unresolved contractual claim or dispute between Proposer and the City;
D. Evidence of incorrect information submitted as part of the proposal; E. Evidence of Proposer’s inability to successfully complete the responsibilities and obligations of the proposal; and
F. Proposer’s default under any agreement that results in termination of the Agreement.

XV. NON-CONFORMING PROPOSAL
A proposal shall be prepared and submitted in accordance with the provisions of these RFP instructions and specifications. Any alteration, omission, addition, variance, or limitation of form or to a proposal may be sufficient grounds for non-acceptance of the proposal, at the sole discretion of the City.

XVI. PROHIBITION OF GIFTS
City of Seaside officials are subject to several legal and policy limitations regarding receipt of gifts from persons, firms, or corporations either engaged in business with the City, or proposing to do business with the City. The offering of any illegal gift shall be grounds to disqualify a Proposer.

To avoid even the appearance of impropriety, Proposer should not offer any gifts or souvenirs, even of minimal value, to City officers or employees. The Proposer shall be subject to the City’s prohibition.

XVII. NON-DISCRIMINATION/NON-PREFERENTIAL TREATMENT
The successful Proposer shall not discriminate, in any way, against any person on the basis of race sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, or national origin, in connection with or related to the performance of City of Seaside contracts.

XVIII.ADDITIONAL TERMS AND CONDITIONS
A. This RFP does not commit the City to pay any costs incurred in the submission of the proposal or in making any necessary studies or analysis in preparation of submission of the proposal.

B. The City reserves the right without limitation to:

1. Execute an agreement with one or more Proposers based solely on the proposal and any approved additions;

2. Enter into an agreement with another Proposer in the event that the originally selected Proposer defaults or fails to execute an agreement with the City;

3. Enter into negotiations with one or more Proposers;

4. Modify and re-issue the RFP;
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5. Take action regarding the RFP as may deemed to be in the best interest of the City.

C. The City reserves the right to verify any information provided during the RFP process.

The City may contact references listed or any other person known to have contracted with Proposer.

D. An agreement shall not be binding or valid with the City unless and until it is executed by authorized representatives of the City and of the Proposer XIX. ATTACHMENTS
Attachment 1. Current Seaside Municipal Water System Rates Attachment 2. City of Seaside – 2019 Water Rate Study
Attachment 3. City of Seaside – 2020 Water Capacity Fee Study Attachment 4. Sample City of Seaside Professional Services Agreement Packet Page 98
ATTACHMENT 1
CURRENT (FY 2022-2023) SEASIDE MUNICIPAL

WATER SYSTEM RATES
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Fee Schedule 22

CITY OF SEASIDE

MASTER FEE SCHEDULE

SCHEDULE OF WATER RATES & FEES
Monthly Meter Charges
Meter Size Total Rate Meter Size Total Rate
3/4" or less $34.50 3/4" or less $39.67
1 Inch Meter $57.50 1 Inch Meter $66.12

1.5 Inch Meter $114.99 1.5 Inch Meter $132.24
2 Inch Meter $183.99 2 Inch Meter $211.59
3 Inch Meter $344.98 3 Inch Meter $396.73
4 Inch Meter $574.96 4 Inch Meter $661.21
6 Inch Meter $1,149.93 6 Inch Meter $1,322.42
Effective
4/1/2021 - 1/1/2022
Effective
4/1/2022 - 1/1/2023
The Monthly meter charges are composed of two parts; a fixed rate determined by water meter size and a variable rate determined by water use. Fixed rates are increased according to capacity ratios determined by the American Water Association.

FEE SCHEDULE
City of Seaside FY 2021/22 Adopted Budget
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Fee Schedule 23

CITY OF SEASIDE

MASTER FEE SCHEDULE

SCHEDULE OF WATER RATES & FEES

VOLUMETRIC RATES & TIER ALLOWANCES
Tier 1 Tier 2
$9.30 $16.00
Tier 1 Tier 2
$10.60 $17.60
Single Family Residential (per dwelling) (ccf) 0 to 4.9 4.9 + (ccf) 0 to 816.5 816.5 +
(ccf) 0 to 206.7 206.7 +
(ccf) 0.5714 0.5714 +
(ccf) 0.5864 0.5864 +
(ccf) 0.5357 0.5357 +
(ccf) 0 to 26.2 26.2 +
(ccf) 0 to 4.9 4.9 +
Fire Department (ccf) 0 to 4.9 4.9 +
ccf = 100 cubic feet = 748 gallons
Allocations per Month [1]
Effective
4/1/2021 - 1/1/2022 ($/ccf)
Effective
1/1/2022 - 1/1/2023 ($/ccf)
Multifamily #1 (per meter) – Del Monte Manor
Multifamily #2 (per meter) – Villa Del Monte
[ 1 ]The first tier collects variable expenses from each customer class according to their Natural Safe Yield (NSY) allowance as allocated by the Seaside Basin Watermaster. The second tier of water rates recovers the cost of exceeding the NSY assessment. Each customer class is allocated Tier 1 water use according to an equitable distribution of the NSY of groundwater for the City of SEaside / Seaside Municipal Water System.

School #1 (per student) – Martin Luther King
School #2 (per student) – Highland Elementary
School #3 (per student) – International School of Monterey Church #1 (per meter) – Greater Victory Temple
Church #2 (per meter) – Seventh Day Adventist

FEE SCHEDULE
City of Seaside FY 2021/22 Adopted Budget
Page | 292
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Fee Schedule 24

CITY OF SEASIDE

MASTER FEE SCHEDULE

SCHEDULE OF WATER RATES & FEES
Service 21/22 Adopted
Reconnection Fees:

During Business Hours $50.00
After Business Hours $150.00
Late Fee $17.00
Deconstruction of Water Meter
Actual Cost
(minimum $255.59)
Removal of Lock (cutting off) $101.00
Install new water service
Acutal Cost
(minimum deposit
$3,000)
Deconstruction of Curb Stop
Actual Cost
(minimum $942.52)
Water Meter Testing Charge $643.00
Water Tank Key Card Replacement $100.00
Water Fees

FEE SCHEDULE
City of Seaside FY 2021/22 Adopted Budget
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ATTACHMENT 2
CITY OF SEASIDE - 2019 WATER RATE STUDY
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City of Seaside
2019 Water Rate Study
September 12, 2019
Bartle Wells Associates
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September 12, 2019
Rick Reidl
Public Works Director
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
Re: Water Rate Study
Bartle Wells Associates (BWA) is pleased to submit to the City of Seaside (City) the attached Water Rate Study Report.

This study presents BWA’s analysis of the operating and non-operating expenses of the City of Seaside’s Municipal Water System (SMWS) and provides five-year cash flow projections and rates.

The primary purpose of this study was to analyze the SMWS and make recommendations that would achieve financial sustainability. Another important purpose of this study was to review rates to ensure that they adhere to the State’s legal requirements.

The enclosed report recommends updating rates and charges to more accurately recover the costs of providing service to SMWS customers. Recommendations were developed with substantial input from City staff. BWA finds that the rates and charges proposed in our report are based on the cost of service for each customer, follow generally accepted rate design criteria, and adhere to the substantive requirements of Proposition 218. BWA believes that the proposed rates are fair and reasonable to water service customers.

We have enjoyed working with the City on this rate study. Please contact us with any future questions about this study and the recommended water rates.

Sincerely,
Doug Dove, CIPFA Abigail Seaman
Principal Consultant
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TABLE OF CONTENTS
1 EXECUTIVE SUMMARY............................................................................................ 3

1.1 Background 3

1.2 Proposition 218 ................................................................................................................ 4

1.3 Use of Generally Accepted Rate-Making Principles......................................................... 5

1.4 Water System Overview................................................................................................... 6

1.4.1 Factors Driving Rate Increases ......................................................................................... 6

1.4.2 Current Water Rates......................................................................................................... 6

1.4.3 Proposed Water Rates...................................................................................................... 8 2 Water Financial Projections.................................................................................... 9

2.1 Water System Financial Overview.................................................................................... 9

2.2 Current Water Rates......................................................................................................... 9

2.3 Customer Information....................................................................................................11

2.4 FY 2015 Water Consumption..........................................................................................11

2.5 Key Assumptions ............................................................................................................12

2.6 Water Supply – Natural Safe Yield Assessment .............................................................12

2.7 Water Budgets................................................................................................................13

2.8 Operations & Maintenance Expenses............................................................................13

2.9 Capital Improvement Plan..............................................................................................14

2.10 Debt Obligations.............................................................................................................14

2.11 Projected Rate Increases................................................................................................15

2.12 Projected Cashflow with Rate Increases........................................................................15 3 Water Cost of Service & Rate Calculations ............................................................17

3.1 Water Rate Structure Recommendations......................................................................17

3.2 Cost Allocation................................................................................................................17

3.3 Fixed Service Charge Recommendations.......................................................................17

3.3.1 AWWA Meter Factor Ratios...........................................................................................17

3.4 Water Variable Charge Recommendations....................................................................18

3.5 Proposed Water Rates....................................................................................................19

3.6 Estimated Residential Bill Impact...................................................................................20

3.7 Residential Water Rate Survey.......................................................................................20 4 Conclusion & Recommendations ..........................................................................21

4.1 Conclusion ...................................................................................................................21

4.2 Recommendations..........................................................................................................21

4.3 Noticed Rates .................................................................................................................21 Packet Page 108
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TABLES
Table ES1. Current Monthly Water Rates..............................................................................................6 Table ES2. Proposed Monthly Water Rates...........................................................................................8 Table 1. Current Water Rates..............................................................................................................10 Table 2. Meter Listing ..........................................................................................................................11 Table 3. Water Consumption...............................................................................................................11 Table 4. Water Capital Improvement Plan ..........................................................................................14 Table 5. Projected Debt Service Obligations.......................................................................................14 Table 6. Projected Rate Increases .......................................................................................................15 Table 7. Water Cash Flow Projection ..................................................................................................16 Table 8. AWWA Meter Flow Ratios.....................................................................................................17 Table 9. Proposed Monthly Water Rates.............................................................................................19 Table 10. Single Family Bill Impact .......................................................................................................20

FIGURES
Figure 1: Map of Seaside, CA..................................................................................................................3 Figure 2: Water Demand and NSY Assessment....................................................................................13 Figure 3: Residential Water Rate Survey..............................................................................................20 Packet Page 109
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1 EXECUTIVE SUMMARY

1.1 Background
The City of Seaside’s Municipal Water System
(SMWS) provides water service to approximately
800 accounts within a portion of Seaside, California
The SMWS is one of three water providers to
Seaside residents including California American
Water Company and Marina Coast Water District.

The SMWS is a self-sustaining enterprise, meaning
revenues (mostly sourced from water rates) aim to
recover the cost to operate and maintain the water
system. The water enterprise has an operating
deficit of $150,000 as of fiscal year (FY) 2018/19.

Rates were last increased in 2015. Primary cost
factors impacting water rates include the increasing
cost of operations and maintenance as well as over
$5 million of capital improvement projects needed to repair aging infrastructure.

The City of Seaside has contracted with Bartle Wells Associates (BWA) to conduct a water rate study of the SMWS which examines current and projected costs and the existing water rate structure as it pertains to California legislation. Basic objectives of the rate study include:
• Identify rate setting principles.
• Develop long-term financial projections to determine future annual water enterprise revenue requirements.
• Evaluate rate alternatives and recommend water rates designed to equitably recover the costs of providing service.

Key guiding principles included developing rates that:
• Are fair and equitable to all customer classes.
• Recover the costs of providing service and generate adequate funding for capital needs. • Are easy to understand and implement.
• Comply with the legal requirements of Proposition 218 and other California laws.

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1.2 Proposition 218
Utility rates are subject to the procedural and substantive requirements as set forth in Proposition 218. Proposition 218 was adopted by California voters in 1996 and added Articles 13C and 13D to the California Constitution. Article 13D, Section 6 governs property‐related charges, which the California Supreme Court subsequently ruled includes ongoing utility service charges such as water and wastewater. Article 13D, Section 6 establishes a) procedural requirements for imposing or increasing property‐related charges, and b) substantive requirements for those charges. Article 13D also requires voter approval for new or increased property‐related charges but exempts from this voting requirement rates for water and wastewater service. The substantive requirements of Article 13D, Section 6 requires SMWS utility rates to meet the following conditions:
• Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service.
• Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
• The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel.
• No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property in question. • No fee or charge may be imposed for general governmental services, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners.

The procedural requirements of Proposition 218 for all utility rate increases are as follows:
• Noticing Requirement: The City must mail a notice of proposed water rate increases to all affected property owners. The notice must specify the basis of the fee, the reason for the fee, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.
• Public Hearing: The City must hold a public hearing prior to adopting the proposed water rate increases. The public hearing must be held not less than 45 days after the required notices are mailed. (The Proposition 218 notice for the proposed rates is provided in the Appendix)
• Rate Increases Subject to Majority Protest: At the public hearing, the proposed water rate increases are subject to majority protest. If 50% plus one of affected property owners submit written protests the proposed rate increases, the increases cannot be adopted.

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1.3 Use of Generally Accepted Rate-Making Principles
The rates developed in this study use a straightforward methodology to establish an equitable system of fixed and variable charges that recover the cost of providing service and fairly apportion costs to each rate component. The rates were developed using generally accepted cost-based principles and methodologies for establishing water rates, charges, and fees contained and discussed in the American Water Works Association (AWWA) M1 Manual.

In developing water rates, it is important to note that there is no “one-size-fits-all” approach for establishing cost-based water rates. “The (M1 Manual) is aimed at outlining the basic elements involved in water rates and suggesting alternative rules of procedure for formulating rates, thus permitting the exercise of judgment and preference to meet local conditions and requirements.”1 BWA used the following criteria when developing our recommendations for SMWS water rates and finances:

Rates Should Generate Adequate Revenues to Fund SMWS Costs, Maintain Prudent Reserve Fund Levels, and Comply with Debt Covenants: Rates should be set to fully fund costs to operate and maintain the water system, fund needed capital improvements, maintain prudent cash reserves, and comply with outstanding debt covenants. Conversely, the SMWS should not generate more revenue than the overall cost to provide water.

Rates Should be Simple, Fair, Justifiable, and Cost-Based: The SMWS should establish simple, fair, and cost-based rates to the extent possible. No customer or customer class should be burdened with more than their fair share of costs. Rate revenue requirements and calculation methodologies should be documented.

Rates Should Consider Conservation Requirements: Water is a scarce commodity in California and wasteful use should be discouraged. However, rates need to be cognitive of possible revenue loss and potential inequitable distributions of the true cost of service. 1 AWWA Manual M1 Manual, Principles of Water Rates, Fees, and Charges, Sixth Edition, 2012, page 5.

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1.4 Water System Overview
The SMWS produces and distributes potable water. The water system has significant capital rehabilitation and replacement needs, including tank and well improvements.

The SMWS pumps groundwater from the Seaside Groundwater Basin under a Natural Safe Yield (NSY) allowance of its water use determined by the Seaside Water Master. The NSY assessment is projected to decrease according to a schedule provided by the Water Master through FY 2021 and any overdraft amount will be subject to a replenishment assessment charge.

The SMWS’s main source of water revenue is monthly water rates which were last increased on January 1, 2015. Rates are not currently sufficient to fund necessary expenses and the current rate structure should be modified to better reflect the cost of water service.

BWA recommends (1) increasing overall water rate revenue cover the cost of service; (2) aligning monthly meter charges with American Water Works Association (AWWA) meter capacity ratios; and (3) modifying the volumetric rate structure from a six-tier structure to a two-tier structure that aligns with the cost of the NSY replenishment assessment for each customer class.

1.4.1 Factors Driving Rate Increases
The primary factors impacting the water rates are the significant cost of replenishment water and needed capital improvements to repair aging infrastructure. SMWS revenues are not sufficient to cover current and projected costs, and this deficit may preclude access to grants and low interest loans.

1.4.2 Current Water Rates
Currently monthly water rates as of January 1, 2015 are listed in Table ES1 below. Volumetric rates are provided in both $/tcf and $/ccf. Units tcf and ccf are defined at the bottom of Table ES1.

Table ES1. Current Monthly Water Rates
2015 Monthly Meter Charges
Meter Size Base Charges Watermaster Fixed
Expenses Total
5/8" $15.32 $10.00 $25.32
1" $15.32 $10.00 $25.32

1.5" $72.20 $10.00 $82.20
2" $119.20 $10.00 $129.20
3" $215.21 $10.00 $225.21
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Monthly Consumption Charges (charged based on $/ccf)
Residential Parks (on a per acre basis)
Consumption (ccf) $/tcf $/ccf Consumption
(ccf)
$/tcf $/ccf
0 - 4 $0.39 $3.87 0 - 4 $0.57 $5.69
4 - 10 $0.84 $8.37 4 - 10 $0.84 $8.37
10 - 20 $1.36 $13.56 10 - 20 $1.36 $13.56
20 - 30 $1.94 $19.35 20 - 30 $1.94 $19.35
30 - 40 $2.65 $26.53 30 - 40 $2.65 $26.53
40 + $3.46 $34.62 40 + $3.46 $34.62
Multifamily (per dwelling) Schools (on a per student basis) Consumption (ccf) $/tcf $/ccf Consumption
(ccf)
$/tcf $/ccf
0 - 4 $0.39 $3.87 1 $0.57 $5.69
4 - 10 $0.84 $8.37 1 - 3 $0.84 $8.37
10 - 20 $1.36 $13.56 3 - 4 $1.36 $13.56
20 - 30 $1.94 $19.35 4 - 5 $1.94 $19.35
30 - 40 $2.65 $26.53 5 - 6 $2.65 $26.53
40 + $3.46 $34.62 6 + $3.46 $34.62
Church #1 Church #2
Consumption (ccf) $/tcf $/ccf Consumption
(ccf)
$/tcf $/ccf
0 - 60 $0.57 $5.69 0 - 14 $0.57 $5.69
60 - 70 $0.84 $8.37 14 - 24 $0.84 $8.37
70 - 80 $1.36 $13.56 24 - 34 $1.36 $13.56
80 - 90 $1.94 $19.35 34 - 44 $1.94 $19.35
90 - 100 $2.65 $26.53 44 - 54 $2.65 $26.53
100 + $3.46 $34.62 54 + $3.46 $34.62
ccf = 100 cubic feet or 748 gallons
tcf = 74.8 gallons
Current water rates include a monthly fixed charge which is determined by meter size, and a variable charge which varies by customer class. Water use is charged according to a six-tier volumetric rate structure. Volumetric rates are currently charged on a $/ccf basis.

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1.4.3 Proposed Water Rates
Proposed monthly water rates are shown on Table ES2 below.

Table ES2. Proposed Monthly Water Rates
Fixed Rates
Volumetric Rates
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Proposed meter charges align with AWWA meter ratios and volumetric rates are proposed to align with the Natural Safe Yield replenishment assessment for each customer class. NSY replenishment assessments were provided by City of Seaside Staff. The NSY replenishment assessments by customer class are determined in terms of ten cubic feet (tcf), and volumetric rates are proposed to be charged accordingly.
2 WATER FINANCIAL PROJECTIONS

2.1 Water System Financial Overview
Bartle Wells Associates conducted an independent evaluation of the SMWS finances. Key observations include:
• Water rates have not been increased since January 1, 2015. • The water enterprise has no current debt service but faces an internal pension liability of $17,500 per year.
• Capital expenses for the water enterprise are estimated to be $4.7 million from FY 2019 to FY 2024. BWA proposes that the SMWS fund these expenses with cash and proposed debt issuances, assumed to be paid through two 20-year loans. • Projected water expenses were determined by developing projections based on historical audits, budgets, and up to date information provided by the City of Seaside. Projected expenses and minimum reserve fund targets were used to develop annual revenue requirements.

2.2 Current Water Rates
Water rates are charged according to several components, including customer category, bill frequency, and rate type (fixed vs. variable) as described below:
• Fixed Rate: Customers receiving water service pay a fixed fee (calculated monthly) per meter.

Meter service charges increase as meter size increases. • Variable Rate: In addition to the fixed rate, water accounts are charged volumetric rates (or “consumption charges”) according to a 6-tier inclining rate structure. The usage amount allotted in each tier varies by customer class. Quantity Charges are billed per centum (100) cubic feet (ccf), with 1 ccf equal to 748 gallons of water.

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In general, rates do not currently cover the cost of water service. Meter charges should be aligned with AWWA meter capacity factors. The existing volumetric tier structure needs to be cost-justified, is complex from a billing perspective and may be difficult to explain to customers.

Table 1. Current Water Rates
2015 Monthly Meter Charges
Meter Size Base Charges Watermaster Fixed
Expenses Total
5/8" $15.32 $10.00 $25.32
1" $15.32 $10.00 $25.32

1.5" $72.20 $10.00 $82.20
2" $119.20 $10.00 $129.20
3" $215.21 $10.00 $225.21
2015 Monthly Consumption Charges (charged based on $/ccf) Residential Parks (on a per acre basis)
Consumption (ccf) $/tcf $/ccf Consumption
(ccf)
$/tcf $/ccf
0 - 4 $0.39 $3.87 0 - 4 $0.57 $5.69
4 - 10 $0.84 $8.37 4 - 10 $0.84 $8.37
10 - 20 $1.36 $13.56 10 - 20 $1.36 $13.56
20 - 30 $1.94 $19.35 20 - 30 $1.94 $19.35
30 - 40 $2.65 $26.53 30 - 40 $2.65 $26.53
40 + $3.46 $34.62 40 + $3.46 $34.62
Multifamily (per dwelling) Schools (on a per student basis) Consumption (ccf) $/tcf $/ccf Consumption
(ccf)
$/tcf $/ccf
0 - 4 $0.39 $3.87 1 $0.57 $5.69
4 - 10 $0.84 $8.37 1 - 3 $0.84 $8.37
10 - 20 $1.36 $13.56 3 - 4 $1.36 $13.56
20 - 30 $1.94 $19.35 4 - 5 $1.94 $19.35
30 - 40 $2.65 $26.53 5 - 6 $2.65 $26.53
40 + $3.46 $34.62 6 + $3.46 $34.62
Church #1 Church #2
Consumption (ccf) $/tcf $/ccf Consumption
(ccf)
$/tcf $/ccf
0 - 60 $0.57 $5.69 0 - 14 $0.57 $5.69
60 - 70 $0.84 $8.37 14 - 24 $0.84 $8.37
70 - 80 $1.36 $13.56 24 - 34 $1.36 $13.56
80 - 90 $1.94 $19.35 34 - 44 $1.94 $19.35
90 - 100 $2.65 $26.53 44 - 54 $2.65 $26.53
100 + $3.46 $34.62 54 + $3.46 $34.62
ccf = 100 cubic feet or 748 gallons
tcf = 74.8 gallons
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2.3 Customer Information
The SMWS provides water service to 786 water meters as of FY 2019, of which 96% of water meters are residential. The SMWS has recently installed a number of 4” and 6” meters, requiring an update to the current fixed meter charges which stop at 3”. Fixed rate revenue currently represents 35% of all rate revenue. A total listing of water meters is provided in Table 2.

Table 2. Meter Listing
Seaside is a relatively slow-growth community and can expect minimal growth over the next five years. Therefore, the SMWS should conservatively project no growth in new connections or increased water consumption for the purposes of this rate study.

2.4 FY 2015 Water Consumption
The City conducted a detailed analysis of water consumption in FY 2015 as shown in Table 3. The water rate study conservatively assumes consumption has remained static since FY 2015. Total water consumption is anticipated to be approximately 80,000 ccf or 800,000 tcf for the duration of the water rate study. Volumetric revenue represents 65% of all water rate revenue.

Table 3. Water Consumption
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2.5 Key Assumptions
BWA developed long-term cash flow projections to determine the water enterprise’s annual revenue requirements and project required water rate revenue increases. The financial projections incorporate the latest information available as well as a number of reasonable and slightly conservative assumptions typical for a rate study. Key information and assumptions include:

Revenue Assumptions
• Miscellaneous fees and interest income are based on the FY 2019 budget. Future projections are estimated based on conservative inflation and an interest earning rate of 1.5%. Actual amounts will vary based on actual miscellaneous fees and future interest earning rates. • Growth in the SMWS’s customer base and water consumption was conservatively assumed to be 0% per year over the next 5 years. The City is a relatively small, slow-growth community and should not rely on growth for additional rate revenue.

Expense Assumptions
• Operating and maintenance costs are based on the FY 2019 budget and escalated at the annual rate of 3.0% to account for future cost inflation. This assumption is based on the 1990 through 2019 Engineering News-Record’s average annual cost increase.

Reserve Targets
• The SMWS’s current cash fund balance is approximately $700,000 as of the beginning of FY 2019. Without a rate increase, the SMWS is projected to run out of reserves in FY 2023.

However, if the proposed rate increases are adopted the water enterprise will have at least $700,000 in reserves at the end of FY 2024 (after the 5-year rate schedule). Reserves are projected to slowly increase as rate revenue slightly exceeds expenses. This will ensure that the proposed rates establish sufficient reserves.
• BWA designed the 5-year Water Cash Flow based on a reserve policy of 33% of water operating expenses plus debt service obligations. As of FY 2024, the target reserve balance is approximately $700,000.

2.6 Water Supply – Natural Safe Yield Assessment
The SMWS purchases water from the Seaside Groundwater Basin Watermaster, which has determined a Natural Safe Yield (NSY) assessment for the SMWS. The NSY assessment is projected to decrease according to a schedule provided by the Watermaster through FY 2021.

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assessment per Acre Foot (AF) for all usage over the NSY. The replenishment assessment would be $2,782/AF in 2019 and is projected to increase 3% per year according to City estimates. An illustration of water demand above the NSY replenishment assessment is shown in Figure 2. A detailed breakdown of water supply and demand is provided in the Appendix.

Figure 2: Water Demand and NSY Assessment

2.7 Water Budgets
The City of Seaside conducted a water budget analysis in FY 2015 which allocated the NSY replenishment assessment cost to each customer class based on a monthly water budget.

Domestic water use was adjusted to 45gal/day/person based on a water system residential population of 2,732. Other customer classes’ water budgets were determined using membership counts (e.g. churches, schools) and actual water use. Any usage above the water budget will be using water above the NSY and therefore will be subject to additional charges per the replenishment assessment determined by the Watermaster. A detailed list of water budget allocations is located in the Appendix.

2.8 Operations & Maintenance Expenses
The SMWS’s operations budget totals approximately $900,000 for FY 2019. All operations expenses are projected to increase 3% per year. A detailed projection of operations & maintenance expenses is provided in the Appendix.

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2.9 Capital Improvement Plan
The SMWS $4.7m capital improvement plan is shown on Table 4 and consists of several rehabilitation, improvement, and replacement projects necessary for the sustainable management of the water enterprise.

Table 4. Water Capital Improvement Plan
Current water rates cannot cover the current Capital Improvement Plan obligations. Additionally, the SMWS’s current operating deficit precludes access to many grants and low-interest loans.

BWA recommends a funding plan including cash and debt funding capital improvement costs as detailed in later sections.

2.10 Debt Obligations
The SMWS does not currently have any debt service obligations but faces an annual Internal pension funding obligation of $17,500 per year. BWA recommends that the SMWS consider two debt issuances, $3.4 million in FY 2020 and $1.3 million in FY 2023, to fund capital expenses and smooth out any required rate increases over time. After evaluating several debt service options, BWA conservatively projected the annual debt obligation required to meet the capital improvement needs based on two 20-year debt issuances at 4% interest. Detailed assumptions regarding issuance costs are located in the Appendix. A summary of debt service obligations is shown on Table 5.

Table 5. Projected Debt Service Obligations
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2.11 Projected Rate Increases
Table 6 below shows the projected overall recommended rate increases needed to fund current operating, capital and debt service obligations as well as achieve cash reserve balance and debt service coverage targets over the next 5 years. If there are any updates to these items, The SMWS should re-evaluate its future rate and revenue requirements based on the latest information available. The City always has the flexibility to implement rates that are lower than those adopted.

Table 6. Projected Rate Increases

2.12 Projected Cashflow with Rate Increases
Table 7 on the next page shows the 5-year cash flow projection for the SMWS. The cash flow incorporates all assumptions and data described in the above sections. Revenue is increasing according to the rate projections shown on and is shown to be sufficient to fund the cost of providing service while maintaining a balanced annual budget and appropriate cash reserve funds.

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Table 7. Water Cash Flow Projection

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3 WATER COST OF SERVICE & RATE CALCULATIONS

3.1 Water Rate Structure Recommendations
In addition to the proposed rate revenue increases, Bartle Wells Associates also recommends a rate structure change to align with the current cost of water service.

3.2 Cost Allocation
BWA conducted a cost of service analysis which confirms that the current cost allocation to fixed and variable charges are appropriate. BWA recommends rates that continue to collect 35% of revenue from fixed charges, and 65% from variable charges. A detailed cost allocation of operations and maintenance expenses is provided in the Appendix.

3.3 Fixed Service Charge Recommendations
Per the cost of service allocation, 35% of revenue will come from fixed charges. This represents no change from the current cost allocation.

3.3.1 AWWA Meter Factor Ratios
BWA recommends that the proposed meter charges align with AWWA meter flow ratios as outlined in Table 8 below.

Table 8. AWWA Meter Flow Ratios
Meter Size # Meters Max Flow Rate (GPM) Flow Ratio 3/4" or less Meter Equivalents 3/4" or less 737 30 1 737
1" or less 26 50 1.7 43

1.5" 1 100 3.3 3
2" 1 160 5.3 5
3" 1 300 10.0 10
4" 0 500 16.7 0
6" 6 1000 33.3 200
Total 999
[1] American Water Works Association Standards, Manual M22, 2nd edition, 2004, page 62. [2] Flow Ratio equal to 1" or less equivalent
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The proposed fixed charges include monthly fixed charge which increase by meter size according to the flow ratios shown above. Larger meters will now face a higher charge compared to the current rate. BWA has also proposed new charges for 4-inch and 6-inch meters per AWWA meter flow ratios for those customers. Proposed fixed charges are shown in Table 9 on the next page. In the years following the rate restructure in 2019/20, the proposed rates will increase according to the proposed annual rate revenue increases shown in Table 6. A detailed calculation of fixed rates is provided in the Appendix.

3.4 Water Variable Charge Recommendations
The proposed variable charge aims to recover 65% of rate revenue.

Two-Tier Volumetric Rate Structure:

The 5-year schedule of proposed volumetric rates are summarized on Table 9 along with the proposed tier allotments. BWA recommends that the SMWS replace the current six-tiered water rate structure and adopt a two-tiered rate structure that aligns with the cost of providing water service. A detailed calculation of volumetric rates is provided in the Appendix.

Tier 1 water use allotments were determined by the Water Budget Analysis performed by the City of Seaside in FY 2015. Tier 1 water rates recover all variable expenses determined by the cost of service analysis. Tier 2 water use consists of all use above the NSY assessment. The Tier 2 rate will recover the cost of the replenishment assessment imposed by the Watermaster. Rates are calculated using $/tcf to align with the SMWS’s water budget assessment.

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3.5 Proposed Water Rates
Table 9 below shows a 5-year schedule of proposed rates incorporating the overall level of required rate increases to fund the cost of providing water service.

Table 9. Proposed Monthly Water Rates
Fixed Rates
Volumetric Rates
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3.6 Estimated Residential Bill Impact
Estimated bill impacts for a typical single-family resident are provided in Table 10 below and are provided for a wide variety of customers in the Appendix. As the water rate revenue requirement increases and the Tier 1 water use allotment decreases, bills are projected to increase. There is no recommended rate increase in the 5th year of the rate study, so bills will remain the same assuming water use is constant.

Table 10. Single Family Bill Impact

3.7 Residential Water Rate Survey
BWA conducted a survey of residential water rates in surrounding water communities and similar agencies. Average monthly usage for a single-family resident was used to calculate typical monthly bills for these agencies as shown in Figure 3. The City of Seaside’s Municipal Water System is currently below the average monthly water bill in the area.

Figure 3: Residential Water Rate Survey
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4 CONCLUSION & RECOMMENDATIONS
This water rate study report presents a comprehensive review of the SMWS’s revenue requirements, cost of service allocation, and rate structure. Projected operations & capital expenses are expected to exceed rate revenues in the next few years. Capital is recommended to be funded with some cash and a proposed debt issuance of $4.5 million. These factors were considered in the rate study to fairly develop rates for customers.

4.1 Conclusion
The practices sound financial planning that has provided for the financial health of the City of Seaside’s Municipal Water System. Unfortunately, the SMWS is facing a revenue deficit while operations and capital costs continue to increase. These recent developments have been factored into a comprehensive water rate study and are reflected in the above proposed rates.

Adoption of these rates reflect the City’s commitment to stewarding financially sound utilities and providing reliable, high quality water service that will benefit the community many years into the future.

4.2 Recommendations
BWA recommends that the City adopt the water rates contained in this report. At minimum, the City should review and update its Water Rate Study every five years and/or concurrent with Master Plan Updates. Rates are typically adopted according to a five-year planning period. Any further rate increases should be supported by a comprehensive rate study.

4.3 Noticed Rates
On July 15, 2019 notices were mailed to residents regarding the water rate increase. Rates noticed to SMWS customers reflect an adjusted Tier 2 rate and adjusted tier breakpoints, representing a more gradual phase-in of the NSY assessment schedule to the benefit of the ratepayer. Since a credit is available to the SMWS from the Watermaster, this will be used to offset the impact of the assessment on ratepayers. All other costs including O&M, capital and debt service are projected to be covered with the noticed rates. The public hearing conducted September 5, 2019 resulted in 4 written protests of the noticed rate increases. Rates are projected to be effective according to the proposed schedule beginning October 29, 2019. The notice is provided in Appendix B, supported by supplementary tables provided in Appendix A.

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This page was left blank to facilitate
double-sided printing.

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APPENDIX A
Water Rate Study
Supplementary Tables
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Appendix Tables
9/12/2019
Seaside Municipal Water System
Water Rate Study 2019
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Figure 1: Water Rate Survey
(Based on Noticed Rates)
Seaside Municipal Water System Water
Rate Study
Current Average, $63.75
$46.17 $53.36
$61.78 $61.97
$74.91
$93.50
$0
$20
$40
$60
$80
$100
$120
$140
City of Salinas (Cal
Water Service)
City of Seaside
(Current)
City of Seaside
(Proposed 10.29.19)
Marina Coast WD -
Ord Community
City of Seaside
(Proposed 1.1.20)
Cal Am - Monterey
Main*
*Cal Am Rate = 2019 Step Rates with CAM and MP&PS
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Table ES-1
Executive Summary - Proposed Fixed Meter Rates
Current
WATER 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023
Meter Size
3/4" or less $25.32 $26.30 $31.55 $37.87 $43.55 $43.55
1 Inch Meter $25.32 $43.83 $52.59 $63.11 $72.58 $72.58

1.5 Inch Meter $82.20 $87.65 $105.18 $126.22 $145.15 $145.15 2 Inch Meter $129.20 $140.24 $168.29 $201.95 $232.24 $232.24 3 Inch Meter $225.21 $262.96 $315.55 $378.66 $435.46 $435.46 4 Inch Meter $438.26 $525.91 $631.10 $725.76 $725.76
6 Inch Meter $876.52 $1,051.83 $1,262.19 $1,451.52 $1,451.52 Proposed Rates ($/Month)
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Table ES-2A
Executive Summary - Proposed Volumetric Water Rates
WATER
Current
Residential
Allocations per
Month ($/tcf)
Tier 1 0 - 40 $0.387
Tier 2 40 - 100 $0.837
Tier 3 100 - 200 $1.356
Tier 4 200 - 300 $1.935
Tier 5 300 - 400 $2.653
Tier 6 400 + $3.462
Proposed Volumetric Rates ($/tcf) $1.57
Proposed Allocations per Month
Single Family Residential (per dwelling) (tcf) 0 to 49 49 + 0 to 49 49 + 0 to 37 37 + 0 to 37 37 + 0 to 37 37 + Multifamily #1 (per meter) (tcf) 0 to 8,165 8,165 + 0 to 8,165 8,165 + 0 to 6,182 6,182 + 0 to 6,182 6,182 + 0 to 6,182 6,182 + Multifamily #2 (per meter) (tcf) 0 to 2,067 2,067 + 0 to 2,067 2,067 + 0 to 1,565 1,565 + 0 to 1,565 1,565 + 0 to 1,565 1,565 + School #1 (per student) (tcf) 0 to 5.714 5.714 + 0 to 5.714 5.714 + 0 to 4.327 4.327 + 0 to 4.327 4.327 + 0 to 4.327 4.327 + School #2 (per student) (tcf) 0 to 5.864 5.864 + 0 to 5.864 5.864 + 0 to 4.440 4.440 + 0 to 4.440 4.440 + 0 to 4.440 4.440 + School #3 (per student) (tcf) 0 to 5.357 5.357 + 0 to 5.357 5.357 + 0 to 4.056 4.056 + 0 to 4.056 4.056 + 0 to 4.056 4.056 + Church #1 (per meter) (tcf) 0 to 262 262 + 0 to 262 262 + 0 to 198 198 + 0 to 198 198 + 0 to 198 198 + Church #2 (per meter) (tcf) 0 to 49 49 + 0 to 49 49 + 0 to 37 37 + 0 to 37 37 + 0 to 37 37 + Fire Department (tcf) 0 to 49 49 + 0 to 49 49 + 0 to 37 37 + 0 to 37 37 + 0 to 37 37 + Proposed Temporary Account Rates ($/tcf) $1.40 $1.57 $1.76 $1.93 $1.96 tcf = 10 cubic feet or 74.8 gallons
1 - Source: City of Seaside
Tier 1 Tier 2 Tier 1 Tier 2 Tier 1 Tier 2 Tier 1 Tier 2 Tier 1 Tier 2 $1.76 $1.17 $1.93 $1.17 $1.96
Tier 2 Tier 1 Tier 2
$0.71 $1.40 $0.85 $1.02
Tier 1 Tier 2 Tier 1 Tier 2 Tier 1 Tier 2 Tier 1
Current Monthly Rates
10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023
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Table ES-2B
Executive Summary - Noticed Volumetric Water Rates
WATER
Current
Residential
Allocations per
Month ($/tcf)
Tier 1 0 - 40 $0.387
Tier 2 40 - 100 $0.837
Tier 3 100 - 200 $1.356
Tier 4 200 - 300 $1.935
Tier 5 300 - 400 $2.653
Tier 6 400 + $3.462
Proposed Volumetric Rates ($/tcf) $1.51
Proposed Allocations per Month
Single Family Residential (per dwelling) (tcf) 0 to 57 57 + 0 to 49 49 + 0 to 49 49 + 0 to 49 49 + 0 to 37 37 + Multifamily #1 (per meter) (tcf) 0 to 9,547 9,547 + 0 to 8,165 8,165 + 0 to 8,165 8,165 + 0 to 8,165 8,165 + 0 to 6,182 6,182 + Multifamily #2 (per meter) (tcf) 0 to 2,417 2,417 + 0 to 2,067 2,067 + 0 to 2,067 2,067 + 0 to 2,067 2,067 + 0 to 1,565 1,565 + School #1 (per student) (tcf) 0 to 6.682 6.682 + 0 to 5.714 5.714 + 0 to 5.714 5.714 + 0 to 5.714 5.714 + 0 to 4.327 4.327 + School #2 (per student) (tcf) 0 to 6.857 6.857 + 0 to 5.864 5.864 + 0 to 5.864 5.864 + 0 to 5.864 5.864 + 0 to 4.440 4.440 + School #3 (per student) (tcf) 0 to 6.264 6.264 + 0 to 5.357 5.357 + 0 to 5.357 5.357 + 0 to 5.357 5.357 + 0 to 4.056 4.056 + Church #1 (per meter) (tcf) 0 to 306 306 + 0 to 262 262 + 0 to 262 262 + 0 to 262 262 + 0 to 198 198 + Church #2 (per meter) (tcf) 0 to 58 58 + 0 to 49 49 + 0 to 49 49 + 0 to 49 49 + 0 to 37 37 + Fire Department (tcf) 0 to 57 57 + 0 to 49 49 + 0 to 49 49 + 0 to 49 49 + 0 to 37 37 + Proposed Temporary Account Rates ($/tcf) $1.36 $1.51 $1.69 $1.87 $1.89 tcf = 10 cubic feet or 74.8 gallons
1 - Source: City of Seaside
$0.71 $1.36 $0.85 $1.02 $1.17 $1.87
1/1/2023
Tier 1 Tier 2
$1.69 $1.17 $1.89
Tier 1 Tier 2 Tier 2 Tier 1 Tier 2
Current Monthly Rates
10/29/2019 1/1/2020 1/1/2021 1/1/2022
Tier 1 Tier 2 Tier 1
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Table ES-3
Water Volume Conversion Fa
1 ccf = 10 tcf = 100 cubic feet = 748 gallons = 7.5 cgl 1 tcf = 10 cubic feet = 74.8 gallons = 0.75 cgl
1 cgl = 100 gallons = 1.34 tcf
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Table 1: Current Rates as of January 1, 2015
Seaside Municipal Water System
Water Rate Study
Meter Size Total
5/8" $25.32
1" $25.32

1.5" $82.20
2" $129.20
3" $225.21
Consumption (ccf) $/tcf $/ccf Consumption (ccf) $/tcf $/ccf 0 - 4 $0.39 $3.87 0 - 4 $0.57 $5.69
4 - 10 $0.84 $8.37 4 - 10 $0.84 $8.37
10 - 20 $1.36 $13.56 10 - 20 $1.36 $13.56
20 - 30 $1.94 $19.35 20 - 30 $1.94 $19.35
30 - 40 $2.65 $26.53 30 - 40 $2.65 $26.53
40 + $3.46 $34.62 40 + $3.46 $34.62
Consumption (ccf) $/tcf $/ccf Consumption (ccf) $/tcf $/ccf 0 - 4 $0.39 $3.87 1 $0.57 $5.69
4 - 10 $0.84 $8.37 1 - 3 $0.84 $8.37
10 - 20 $1.36 $13.56 3 - 4 $1.36 $13.56
20 - 30 $1.94 $19.35 4 - 5 $1.94 $19.35
30 - 40 $2.65 $26.53 5 - 6 $2.65 $26.53
40 + $3.46 $34.62 6 + $3.46 $34.62
Consumption (ccf) $/tcf $/ccf Consumption (ccf) $/tcf $/ccf 0 - 60 $0.57 $5.69 0 - 14 $0.57 $5.69
60 - 70 $0.84 $8.37 14 - 24 $0.84 $8.37
70 - 80 $1.36 $13.56 24 - 34 $1.36 $13.56
80 - 90 $1.94 $19.35 34 - 44 $1.94 $19.35
90 - 100 $2.65 $26.53 44 - 54 $2.65 $26.53
100 + $3.46 $34.62 54 + $3.46 $34.62
ccf = 100 cubic feet or 748 gallons
tcf = 74.8 gallons
$119.20
$215.21
2015 Monthly Meter Charges
Base Charges
$15.32
$15.32
$72.20
$10.00
Watermaster Fixed Expenses
$10.00
$10.00
$10.00
$10.00
Church #2
Monthly Consumption Charges ($/ccf)
Residential Parks (on a per acre basis)
Multifamily (per dwelling) Schools (on a per student basis) Church #1
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Table 2: Watermaster Natural Safe Yield Analysis
Seaside Municipal Water System
Water Rate Study
Projected Projected Projected Projected Projected Projected Projected FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Estimated Usage (Acre Feet)
Natural Safe Yield (NSY) 147 147 147 111 111 111 111
Exceeding Natural Safe Yield 0 0 0 0 0 0 0
Over Draft 43 43 43 70 70 70 70
Total Production 190 190 190 181 181 181 181
Estimated Costs
Natural Safe Yield (NSY) - Acre Feet 147 147 147 111 111 111 111 Unit cost $0 $0 $0 $0 $0 $0 $0
Exceeding NSY - Acre Feet 43 43 43 70 70 70 70
Unit Cost [1] $2,872 $2,958 $3,047 $3,138 $3,232 $3,329 $3,429 Total Replenishment Assessment $123,496 $127,201 $131,017 $219,682 $226,272 $233,060 $240,052 All water production units in Acre-Feet
NSY = Natural Safe Yield
1 - FY 2018 actual provided by Watermaster, 3% estimated cost escalation thereafter 171
147
111
0 50
100
150
200
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Acre Foot
Year
Groundwater Available
Groundwater Available
-14% -18%
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Table 3: Water Budgets
Seaside Municipal Water System
Water Rate Study
FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Tier 1 Tier 1 Tier 1 Tier 1 Tier 1 Tier 1 Tier 1 Tier 1 Annual Tier Allocation (AF) 171 147 147 147 111 111 111 111 Per Month Allocation (tcf) 62,226 53,216 53,216 53,216 40,296 40,296 40,296 40,296 Monthly (tcf/mo) (tcf/mo) (tcf/mo) (tcf/mo) (tcf/mo) (tcf/mo) (tcf/mo) Residential Units Water Budget
Single-Family Residential 752 Per Dwelling 57 49 49 49 37 37 37 37 Multi-Family #1 1 Per Meter 9,547 8,165 8,165 8,165 6,182 6,182 6,182 6,182 Multi-Family #2 1 Per Meter 2,417 2,067 2,067 2,067 1,565 1,565 1,565 1,565 Schools
School #1 571 Per Student 6.682 5.714 5.714 5.714 4.327 4.327 4.327 4.327 School #2 208 Per Student 6.857 5.864 5.864 5.864 4.440 4.440 4.440 4.440 School #3 225 Per Student 6.264 5.357 5.357 5.357 4.056 4.056 4.056 4.056 Churches
Church - #1 1 Per Meter 306 262 262 262 198 198 198 198 Church #2 1 Per Meter 58 49 49 49 37 37 37 37
Other
Fire Department 1 Per Station 57 49 49 49 37 37 37 37
tcf = ten cubic feet = 74.8 gallons
Tier 1 Water Budget Allocations:

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Table 4: Consumption - FYE 2015
Seaside Municipal Water System
Water Rate Study
Meter Size Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6
Total by Meter
Size
3/4" or below 29,894 15,731 2,788 143 32 37 48,625
1" 981 730 170 3 0 0 1,884

1.5" 48 72 101 11 0 0 232
2" 520 27 20 20 14 8 609
3" 19,764 6,310 6 0 0 0 26,080
Total (ccf) 51,207 22,870 3,085 177 46 45 77,430
Total (tcf) 512,070 228,700 30,850 1,770 460 450 774,300 Class Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Total By Class Variable Revenue Residential 30,689 16,404 2,958 146 32 37 50,266 $301,133 Apartment 12,362 3,830 0 0 0 0 16,192 $79,898
Church 688 84 20 20 14 8 834 $7,104
Fire Department 48 72 101 11 0 0 232 $2,458
School 7,402 2,480 6 0 0 0 9,888 $62,956
Parks 18 0 0 0 0 0 18 $102
Total (ccf) 51,207 22,870 3,085 177 46 45 77,430 $453,653 Total (tcf) 512,070 228,700 30,850 1,770 460 450 774,300 Source: City of Seaside Consumption Data FY2014/2015
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Table 5: Meters by Class and Size - FY 2019
Seaside Municipal Water System
Water Rate Study
Residential Fire Department School Apartment Parks Church Total 3/4" or less 729 0 0 0 7 1 737
1" 23 0 0 0 3 0 26

1.5" 0 1 0 0 0 0 1
2" 0 0 0 0 0 1 1
3" 0 0 0 1 0 0 1
4" 0 0 0 0 0 0 0
6" 0 0 3 1 2 0 6
752 1 3 2 12 2 772
Source: City of Seaside, by email March 2019
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Table 6: Estimated Revenue
Seaside Municipal Water System
Water Rate Study
Class / Meter Size No. of Meters Fixed Monthly Rate [1] Fixed Variable Total Residential
3/4" or less 729 $25.32 $221,499 $291,923 $513,423
1" 23 $25.32 $6,988 $9,210 $16,199
Fire Department

1.5" 1 $82.20 $986 $2,371 $3,357
School
6" [2] 3 $225.21 $8,108 $62,956 $71,064
Church
3/4" or less 1 $25.32 $304 $1,433 $1,737
2" 1 $129.20 $1,550 $5,671 $7,222
Apartment
3" 1 $225.21 $2,703 $39,949 $42,652
6" [2] 1 $225.21 $2,703 $39,949 $42,652
760
Total estimated FY2019 Service Revenue [3] $244,841 $453,463 $698,304 35% 65%
[1] Fixed Monthly Rate includes Watermaster Fixed Expenses charge (from Table 3) [2] No current rate for 6" meter
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Table 7: Budgeted and Projected O&M Expenses
Seaside Municipal Water System
Water Rate Study
Current
% Fixed % Variable FY 2019 Escalation % FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Salaries 50% 50% $75,853 3% $78,129 $80,472 $82,887 $85,373 $87,934 Overtime 50% 50% $200 3% $206 $212 $219 $225 $232
Workers Compensation 40% 60% $306 3% $315 $325 $334 $344 $355 Mamagment Leave Payoff 40% 60% $200 3% $206 $212 $219 $225 $232 Vacation/Comp Time Payoff 40% 60% $1,000 3% $1,030 $1,061 $1,093 $1,126 $1,159 Deferred Compensation 40% 60% $240 3% $247 $255 $262 $270 $278 Pers Pension Ob Bond 40% 60% $399 3% $411 $423 $436 $449 $463 Pers Pension 40% 60% $19,177 3% $19,752 $20,345 $20,955 $21,584 $22,231 Pars Pension 40% 60% $993 3% $1,023 $1,053 $1,085 $1,118 $1,151 Medical Insurance 40% 60% $16,233 3% $16,720 $17,222 $17,738 $18,270 $18,818 Dental Insurance-Guardian 40% 60% $1,232 3% $1,269 $1,307 $1,346 $1,387 $1,428 Vision Insurance 40% 60% $125 3% $129 $133 $137 $141 $145 LTD 40% 60% $329 3% $339 $349 $360 $370 $381
Life Insurance 40% 60% $393 3% $405 $417 $429 $442 $456 Medicare Tax 40% 60% $1,100 3% $1,133 $1,167 $1,202 $1,238 $1,275 Legal Costs 40% 60% $20,000 3% $20,600 $21,218 $21,855 $22,510 $23,185 Training & Education 40% 60% $1,500 3% $1,545 $1,591 $1,639 $1,688 $1,739 Fitness Program 40% 60% $54 3% $56 $57 $59 $61 $63
State And Agency Fees 40% 60% $5,000 3% $5,150 $5,305 $5,464 $5,628 $5,796 Outside Printing Service 40% 60% $7,000 3% $7,210 $7,426 $7,649 $7,879 $8,115 Lockbox Service 40% 60% $10,000 3% $10,300 $10,609 $10,927 $11,255 $11,593 Contract Services 40% 60% $8,000 3% $8,240 $8,487 $8,742 $9,004 $9,274 Stationary Supplies 40% 60% $2,000 3% $2,060 $2,122 $2,185 $2,251 $2,319 Department Consumables 40% 60% $1,000 3% $1,030 $1,061 $1,093 $1,126 $1,159 Safety Equipment 10% 90% $2,000 3% $2,060 $2,122 $2,185 $2,251 $2,319 Meetings & Travel 40% 60% $1,000 3% $1,030 $1,061 $1,093 $1,126 $1,159 Dues & Membership 40% 60% $0 3% $0 $0 $0 $0 $0
Books & Periodicals 40% 60% $200 3% $206 $212 $219 $225 $232 Postage 40% 60% $0 3% $0 $0 $0 $0 $0
Water Rebates 0% 100% $5,000 3% $5,150 $5,305 $5,464 $5,628 $5,796 Vehicle Maintenance 40% 60% $9,500 3% $9,785 $10,079 $10,381 $10,692 $11,013 Liability Insurance 40% 60% $6,000 3% $6,180 $6,365 $6,556 $6,753 $6,956 Computer System 40% 60% $19,400 3% $19,982 $20,581 $21,199 $21,835 $22,490 Central Service Charges 30% 70% $180,455 3% $185,869 $191,445 $197,188 $203,104 $209,197 Bad Debt - Write Off 40% 60% $0 3% $0 $0 $0 $0 $0
Salaries 50% 50% $140,045 3% $144,246 $148,574 $153,031 $157,622 $162,351 Overtime 50% 50% $13,000 3% $13,390 $13,792 $14,205 $14,632 $15,071 Workers Compensation 40% 60% $10,096 3% $10,399 $10,711 $11,032 $11,363 $11,704 Mamagment Leave Payoff 40% 60% $500 3% $515 $530 $546 $563 $580 Vacation/Comp Time Payoff 40% 60% $2,000 3% $2,060 $2,122 $2,185 $2,251 $2,319 Deferred Compensation 40% 60% $1,200 3% $1,236 $1,273 $1,311 $1,351 $1,391 Pers Pension Ob Bond 40% 60% $1,309 3% $1,348 $1,389 $1,430 $1,473 $1,517 Pers Pension 40% 60% $35,437 3% $36,500 $37,595 $38,723 $39,885 $41,081 Pars Pension 40% 60% $0 3% $0 $0 $0 $0 $0
Liuna Pension 40% 60% $0 3% $0 $0 $0 $0 $0
Medical Insurance 40% 60% $29,845 3% $30,740 $31,663 $32,612 $33,591 $34,599 Dental Insurance 40% 60% $2,112 3% $2,175 $2,241 $2,308 $2,377 $2,448 Vision Insurance 40% 60% $218 3% $225 $231 $238 $245 $253 LTD 40% 60% $284 3% $293 $301 $310 $320 $329
Life Insurance 40% 60% $210 3% $216 $223 $229 $236 $243 Medicare Tax 40% 60% $2,031 3% $2,092 $2,155 $2,219 $2,286 $2,354 Consultant 40% 60% $3,000 3% $3,090 $3,183 $3,278 $3,377 $3,478 Fitness Program 40% 60% $0 3% $0 $0 $0 $0 $0
Uniform Service/Laundry 40% 60% $2,000 3% $2,060 $2,122 $2,185 $2,251 $2,319 Water Sampling 10% 90% $10,000 3% $10,300 $10,609 $10,927 $11,255 $11,593 Subcontracted Work 50% 50% $20,000 3% $20,600 $21,218 $21,855 $22,510 $23,185 Department Consumables 40% 60% $15,000 3% $15,450 $15,914 $16,391 $16,883 $17,389 Tools 10% 90% $1,000 3% $1,030 $1,061 $1,093 $1,126 $1,159 Gas & Electric 10% 90% $60,000 3% $61,800 $63,654 $65,564 $67,531 $69,556 Department Equipment 10% 90% $114,000 3% $117,420 $120,943 $124,571 $128,308 $132,157 Payment On Principal 40% 60% $4,944 3% $5,092 $5,245 $5,402 $5,565 $5,731 Interest Expense 40% 60% $480 3% $494 $509 $525 $540 $556 Watermaster Fixed Expenses [1] 100% 0% $18,572 3% $19,130 $19,704 $20,295 $20,903 $21,531 Total All Expenses $883,172 $909,668 $936,958 $965,066 $994,018 $1,023,839 Total Fixed Costs [2] 35% $313,177 $322,572 $332,249 $342,217 $352,483 $363,058 Total Variable Costs [2] 65% $569,996 $587,096 $604,708 $622,850 $641,535 $660,781 1 - Source: supplementary documents provided by City of Seaside Packet Page 143
Table 8: Capital Improvement Projects - Funding Scenarios as of May 2019 Seaside Municipal Water System
Water Rate Study
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Out Years [1] Project Total Water Security Upgrades $0 $90,000 $300,000 $0 $0 $0 $0 $390,000 Well Replacement $0 $350,000 $1,000,000 $600,000 $0 $0 $0 $1,950,000 Master Plan / Rate Study $0 $170,000 $150,000 $50,000 $20,000 $0 $0 $390,000 Tank Improvements Project $0 $440,000 $0 $20,000 $0 $740,000 $0 $1,200,000 Alternative Water Source $0 $80,000 $10,000 $30,000 $90,000 $100,000 $800,000 $1,110,000 Arc Flash Hazard Mitigation $0 $30,000 $90,000 $0 $0 $0 $0 $120,000 Capital Improvements $130,000 $0 $0 $50,000 $100,000 $50,000 $100,000 $430,000 Total CIP Improvements $130,000 $1,160,000 $1,550,000 $750,000 $210,000 $890,000 $900,000 $5,590,000 Source: Water CIP 2019, revised by Rick Reidl via email 5/6/2019 [1] Assumed to be spread out over three years, FY 2025 - FY 2027 Packet Page 144
Table 9: Long Term Debt
Seaside Municipal Water System
Water Rate Study
FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024
Current Debt
Internal Pension Liability [1] 17,500 17,500 17,500 17,500 17,500 17,500 Total Current Debt 17,500 17,500 17,500 17,500 17,500 17,500 Proposed Debt for Capital Funding FY 2020 and FY 2023 #1 FY 2020 #2 FY 2023 20-yr Bond 20-yr Bond
Total Debt Issue Size $3,400,000 $1,300,000
Proceeds For Construction $3,200,500 $1,121,500
Financial Advisor $50,000 $50,000
Bond Counsel 50,000 50,000
Placement Agent Fee 0 0
Disclosure Counsel 25,000 25,000
Printing 2,000 2,000
Escrow Agent
Trustee 3,500 3,500
Ratings 25,000 25,000
Misc/computer/legal review 10,000 10,000
Total Costs of Issuance 165,500 165,500
Underwriter's Discount (%) 1.00% 1.00%
Underwriter's Discount/Bank Fee ($) 34,000 13,000
Total All Costs 199,500 178,500
Principal Maturities 20 20
Assumed Avg Interest Rate 4.0% 4.0%
Average Interest Payment 136,000 52,000
Average Annual Principal Payment 114,178 43,656
Total Average Annual Payment $250,175 $95,656
Total of All Payments 5,003,499 1,913,126
Present Value of Payments1 3,400,000 1,300,000
[1] Discounted at assumed borrowing rate.

Total Costs as % of Issue 5.9% 13.7%
Total Payments 5,003,499 1,913,066
Debt Service Factor ($/$1M proceeds) $78,167 $85,293
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
Total Debt Service
Current Debt Service [1] 17,500 17,500 17,500 17,500 17,500 17,500 Proposed Debt Payments [2] 0 0 136,000 250,175 250,175 302,175 Total Long Term Debt 17,500 17,500 153,500 267,675 267,675 319,675 [1] Net Pension Liability, $263,774, 15 year payoff
[2] Two 20 Year Bonds - Placeholder Assumption
Receive proceeds for construction in FY2020 and FY 2023, debt service begins following year. Interest only payment in first year Packet Page 145
Table 10: Operating Cash Flow
Seaside Municipal Water System
Water Rate Study
FY 2019 FY 2021 FY 2022 FY 2023 FY 2024
Overall Rate Increase 25% + 20% 20% 15% 0% 0%
Effective Date 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 Beginning Balance [2] $2,741,424 $1,312,924 $747,249 $1,911,074 Operating Revenues add'l revenue
Base Charge $244,841 $133,000 + $184,000 $416,000 $488,000 $522,000 $522,000 Variable Charge $453,463 $246,000 + $340,000 $771,000 $904,000 $967,000 $967,000 All other operating revenue [3] $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Total Operating Revenue $723,304 $404,000 $524,000 $1,212,000 $1,417,000 $1,514,000 $1,514,000 Non-operating Revenue
Proposed Debt - Proceeds for Construction $0 $0 $0 $1,121,500 $0 Total Non-operating Revenue $0 $0 $0 $1,121,500 $0
Total Operating Expenses $883,000 $937,000 $965,000 $994,000 $1,024,000 Long Term Debt & Pensions
Internal Pension Liability $17,500 $17,500 $17,500 $17,500 $17,500 Proposed Loan $0 $136,000 $250,175 $250,175 $302,175
Total Long Term Debt $17,500 $153,500 $267,675 $267,675 $319,675 Capital Projects $130,000 $1,550,000 $750,000 $210,000 $890,000 Ending Balance $1,312,924 $747,249 $1,911,074 $1,191,399 Minimum Fund Balance Target [4] $462,710 $586,125 $595,695 $657,595 Reserve Target Met? yes yes yes yes
Debt Service Coverage - Proposed Debt 2.02 1.81 2.08 1.62 [1] Current Variable Rate Varies due to tiered rate structure [2] Estimated fund balance as of June 30, 2019 from City of Seaside [3] Includes interest income, late fees, and penalties
[4] 33% of operating expenses plus debt service
$317,800
yes
$3,200,500
$3,200,500
$910,000
$1,160,000
$17,500
$0
$17,500
FY 2020
$928,000
$700,424
$2,741,424
Packet Page 146
Table 11: Meter Equivalents
Seaside Municipal Water System
Water Rate Study
Meter Size # Meters Max Flow Rate (GPM) Flow Ratio 3/4" or less Meter Equivalents 3/4" or less 737 30 1 737
1" or less 26 50 1.7 43

1.5" 1 100 3.3 3
2" 1 160 5.3 5
3" 1 300 10.0 10
4" 0 500 16.7 0
6" 6 1000 33.3 200
Total 999
[1] American Water Works Association Standards, Manual M22, 2nd edition, 2004, page 62. [2] Flow Ratio equal to 1" or less equivalent
Packet Page 147
Table 12: Fixed Meter Rate Calculation
Seaside Municipal Water System
Water Rate Study
Fixed Revenue Current Rates* $252,186
Meter Equivalent Units 999
Current $/Meter Equivalent Unit $21.04
Fixed Rate Revenue
Effective Date 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Rate Revenue Increase - Table 10a 25% 20% 20% 15% 0%
Fixed Revenue Requirement [1] $315,233 $378,279 $453,935 $522,025 $522,025 Meter Equivalent Units (3/4" or less) [2] 999 999 999 999 999 Fixed Rate Calculation
Annually $315.55 $378.66 $454.39 $522.55 $522.55
Monthly $26.30 $31.55 $37.87 $43.55 $43.55
* Includes 3% delinquency factor
[1] Full year of fixed rate revenue with proposed increase [2] From table 11
Packet Page 148
Table 13: Proposed Volumetric Rate Structure Calculation Seaside Municipal Water System
Water Rate Study
Volumetric Revenue Current Rates* $467,067
Water Consumption (tcf) 827,696
Current $/tcf consumption $0.56
Volumetric Rate Revenue
Effective Date 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Rate Revenue Increase - Table 10a 25% 20% 20% 15% 0%
Variable Revenue Requirement [1] $583,833 $700,600 $840,720 $966,828 $966,828 Tier 1 Rate Calculation
Tier 1 Variable Rate ($/tcf) $0.71 $0.85 $1.02 $1.17 $1.17 Tier 2 Rate Calculation
Exceeding NSY Assessement ($/AF) - Actual $3,047 $3,138 $3,232 $3,329 $3,429 Exceeding NSY Assessement ($/AF) - Adjusted [2] $2,872 $2,872 $2,958 $3,047 $3,138 Exceeding NSY Assessement ($/AF) - Actual $0.70 $0.72 $0.74 $0.76 $0.79 Exceeding NSY Assessment ($/tcf) $0.66 $0.66 $0.68 $0.70 $0.72 Tier 1 Variable Rate ($/tcf) $0.71 $0.85 $1.02 $1.17 $1.17 Total Tier 2 Variable Rate ($/tcf) - Actual $1.40 $1.57 $1.76 $1.93 $1.96 Total Tier 2 Variable Rate ($/tcf) - Adjusted [2] $1.36 $1.51 $1.69 $1.87 $1.89 Total Annual Allocation (tcf) 827,696 827,696 827,696 827,696 827,696 * Includes 3% revenue buffer
AF = Acre feet
tcf = 10 cubic feet or 74.8 gallons
[1] Full year of variable rate revenue with proposed increase [2] Schedule of assessment costs delayed for a more gradual ramp up of rates Packet Page 149
Table 14: Sample Monthly Bills (Based on Noticed Rates) Seaside Municipal Water System
Water Rate Study
Water Use
tcf Current 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Single Family - 3/4" Meter [1] 50.3 3/4" or less meter
Tier 1 Consumption 50 49 49 49 37
Tier 2 Consumption 0.0 1.2 1.2 1.2 13.1
Estimated Bill $53.36 $61.78 $74.91 $89.76 $103.13 $111.74 % Bill Increase 16% 21% 20% 15% 8%
Example School 4,000 571 students, 3" meter
Tier 1 Consumption 3,263 3,263 2,471 2,471 2,471
Tier 2 Consumption 737 737 1,529 1,529 1,529
Estimated Bill $2,919.71 $3,570.51 $4,187.40 $5,480.16 $6,177.55 $6,209.65 % Bill Increase 22% 17% 31% 13% 1%
Example Apartments 2,200 80 dwelling units, 3" meter
Tier 1 Consumption 2,067 2,067 1,565 1,565 1,565
Tier 2 Consumption 133 133 635 635 635
Estimated Bill $1,386.21 $1,902.72 $2,265.67 $3,044.57 $3,449.50 $3,462.82 % Bill Increase 37% 19% 34% 13% 0%
Example Church 400 2" meter
Tier 1 Consumption 262 262 198 198 198
Tier 2 Consumption 138 138 202 202 202
Estimated Bill $413.70 $513.41 $597.89 $745.18 $840.53 $844.76 % Bill Increase 24% 16% 25% 13% 1%
[1] Single Family Consumption based on Cal Am average single family usage 37.7 cgl converted to 50.3 tcf Packet Page 150

APPENDIX B
Proposition 218 Notice
Packet Page 151
Proposition 218 Notification

NOTICE TO PROPERTY OWNERS OF PROPOSED WATER

RATE INCREASES AND PUBLIC HEARING PROCEEDINGS
NOTICE IS HEREBY GIVEN, pursuant to Article XIII(D) of the California Constitution that the City of Seaside (City) / Seaside Municipal Water System (SMWS) is proposing to increase its rates for water services. The City Council will conduct a public hearing on this matter, which will be held on:

Date: September 5, 2019
Time: 7:00 P.M.

Place: Seaside City Hall
440 Harcourt Ave. Seaside, California 93955
The public hearing will review the proposed changes to fees for water service, and other related fees and charges. At the time of the public hearing, the Council will hear and consider all protests and objections concerning these matters. This notice has been sent to all utility customers as of the last address available. If there is no majority protest, the Council will consider and may adopt the increased rates by resolution. The proposed rate changes will become effective no sooner than 30 days after adoption of the approved rate change.

This Notice of Public Hearing provides information on the proposed water rate changes as required by State law. The ordinance for the proposed rate change is anticipated to be presented to the City Council for adoption in September or as soon as practical thereafter. This notice also provides information on how the rates are calculated, the reasons for the required rate changes, how customers can receive more information on the effect of the rate changes, and how to file a protest the proposed rate change.

City of Seaside/Seaside Municipal Water System
440 Harcourt Avenue
Seaside, California 93955
For more information and questions please contact Misty Bradshaw at (831) 899‐ 6825 or visit City Hall at 440 Harcourt Ave. Seaside, California 93955 Packet Page 152
Why Am I Receiving This Notice?
You are receiving this notice in accordance with Proposition 218, a state law which requires providers of public utility services (including water service) to notify rate payers of increases in proposed rates. Your property receives water service from the City of Seaside/SMWS.

This notice is intended to provide you with information on the service provided by the City, the reasons for the proposed rates, and the methods by which you can protest the proposed rates if you desire.

What Services Do Rates Fund?
The Seaside Municipal Water System provides continuous, year-round, potable water service to approximately 780 accounts in the City of Seaside.

Why is a Rate Increase Needed?
Rate increases are needed to keep City revenues in line with the cost of providing service. The water system faces expenses such as labor, water supply, energy, capital projects, and the cost of regular maintenance of the system.

The City currently receives water from the Seaside Groundwater Basin. The amount of groundwater available is limited and the City’s water use is currently above the Natural Safe Yield (NSY) requirement determined by the Watermaster. The City will soon face a replenishment cost for the water use that exceeds the NSY.

Proposed Water Rates
The City’s proposed water rates are composed of two parts, a fixed rate determined by water meter size and a variable rate determined by water use. Fixed rates are increased according to capacity ratios determined by the American Water Works Association. The proposed fixed rates are shown below.

Fixed Rates
Water – Fixed Rates
$/meter
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Current 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023
Meter Size
3/4" or less $25.32 $26.30 $31.55 $37.87 $43.55 $43.55
1 Inch Meter $25.32 $43.83 $52.59 $63.11 $72.58 $72.58

Volumetric Rates
Water – Variable Rates
$/tcf
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Current 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023
Tier 1 Water Use ($/tcf) Varies $0.71 $0.85 $1.02 $1.17 $1.17 Tier 2 Water Use ($/tcf) Varies $1.36 $1.51 $1.69 $1.87 $1.89 Each customer class is allocated Tier 1 water use according to an equitable distribution of the NSYof groundwater for the City of Seaside/SMWS. Water allocations for Tier 1 are shown below. All use above the Tier 1 allocation will be billed at the Tier 2 water rate.

Tier Allowances
Water – Tier 1 Water
Allocation (tcf)
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Current 10/29/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023
Single Family Residential
(Per dwelling) Varies 57 49 49 49 37
Multifamily No. 1
(Per meter) Varies 9,547 8,165 8,165 8,165 6,182
Multifamily No. 2
(Per meter) Varies 2,417 2,067 2,067 2,067 1,565
School No. 1
(Per student) Varies 6,682 5,714 5,714 5,714 4,327
School No. 2
(Per student) Varies 6,857 5,864 5,864 5,864 4,440
School No. 3
(Per student) Varies 6,264 5,357 5,357 5,357 4,056
Church No. 1
(Per meter) Varies 306 262 262 262 198
Church No. 2
(Per meter) Varies 58 49 49 49 37
Fire Department Varies 57 49 49 49 37
Packet Page 154
Residential Bill Impact
A survey of residential water bills in surrounding agencies is provided below. The City of Seaside is currently below the average monthly water bill for the area.

Public Notice and Majority Protest Process
The City of Seaside City Council will hold a public hearing as a part of the City Council meeting to be held on September 5, 2019 at 7:00 pm at City Hall, 440 Harcourt Avenue Seaside, California 93955.

Proposition 218 requires that public utility providers follow a strictly defined process for increasing fees such as water service rates. Customers directly responsible for the payment of the rates and/or property owners, if different, may submit a written protest against the rate changes. If the City receives written protests from a majority of the affected customers and/or property owners of the identified parcels, then the proposed rate changes cannot be adopted by the City Council. It is important to follow these instructions in order for your protest to be valid:

1. The protest must be in writing and received by the City Clerk at or before the close of the public hearing on September 5, 2019. The protest must specifically identify what is being protested. Written protests may be mailed or personally delivered to the City Clerk at City Hall – 440 Harcourt Avenue Seaside, California 93955

2. All written protests must include the service address

3. The protest must be signed by the person who is listed on the utility account and is responsible for paying the utility bill and/or the property owner. The name of the signer should also be printed legibly.

Only one protest will be counted for each property.

For more information and questions please contact Misty Bradshaw at (831) 899‐ 6825 or visit City Hall at 440 Harcourt Ave. Seaside, California 93955 Packet Page 155
ATTACHMENT 3
CITY OF SEASIDE - 2020 WATER CAPACITY FEE STUDY
Packet Page 156

City of Seaside
2020 Water Capacity Fee Study
May 13, 2020
Draft Report
Packet Page 157
City of Seaside – Water Capacity Fee Report Page 1
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City of Seaside– Water Capacity Fee Report Page 2
May 13, 2020
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
Attn: Scott Ottmar, Acting City Engineer
Re: 2020 Water Capacity Fee Study
Bartle Wells Associates (BWA) is pleased to submit to the City of Seaside the attached Water Capacity Fee Study. The results of the of the study are a product of extensive review of public information and input from City Staff.

This study presents BWA’s analysis of the costs of the City’s water infrastructure, assets and projects benefiting new development. The enclosed report recommends capacity fees calculated using an average cost methodology to recover the benefit associated with new development within the water system given the value of water assets, capital improvement plans, and projected number of customers through 2030. BWA finds that the proposed fees follow generally accepted fee design criteria and adhere to the substantive requirements of California government code.

We have enjoyed working with the City on this study. Please contact us with any future questions about this study and the recommended capacity fees.

Sincerely,

BARTLE WELLS ASSOCIATES
Doug Dove, CIPFA Abigail Seaman
Principal Financial Analyst
Packet Page 159
City of Seaside – Water Capacity Fee Report Page 3
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City of Seaside – Water Capacity Fee Report Page 4

TABLE OF CONTENTS
1 Introduction, Objectives, and Government Code ............................................................ 6

1.1 Introduction and Objectives......................................................................................... 6

1.2 Government Code ........................................................................................................ 7 2 Capacity Fee Calculation Methodology ........................................................................... 8

2.1 Standard Capacity Fee Calculation Methodologies...................................................... 8

2.1.1 BWA Recommended Method: Average Cost Approach........................................... 9

2.1.2 Current Customers & Meter Equivalent Units.......................................................... 9

2.2 Buildout Growth Projection........................................................................................ 10 3 Water Capacity Fee Calculation .................................................................................... 10

3.1 System Buy-In Component – Existing Assets.............................................................. 10

3.2 System Expansion Component – Capital Improvement Plan..................................... 11

3.3 Water Capacity Fee Calculation.................................................................................. 11

3.4 Proposed Water Capacity Fees................................................................................... 12

3.5 Capacity Fee Survey of Surrounding Agencies........................................................... 13 4 Conclusion and Recommendations............................................................................... 14

4.1 Conclusion .................................................................................................................. 14

4.2 Future Fee Adjustments............................................................................................. 14 Appendix A – Detailed Capacity Fee Calculation...................................................................A1 Appendix B – Government Code Pertaining to Capacity Fees................................................ B1 Packet Page 161
City of Seaside – Water Capacity Fee Report Page 5
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City of Seaside – Water Capacity Fee Report Page 6
1 Introduction, Objectives, and Government Code

1.1 Introduction and Objectives
Bartle Wells Associates (BWA) has been retained by the City of Seaside (City) to conduct a Water Capacity Fee Study. Key objectives of the study include (1) evaluating the City’s current value of water assets, (2) assessing the marginal benefit of assets and short-term capital improvement projects on new development, and (3) developing a capacity fee that equitably recovers the cost of infrastructure and assets benefitting new development.

The City does not currently charge water capacity fees, but has the authority to levy capacity fees according to California Government Code. Capacity fees are one‐time fees, paid up‐front as a condition of new development or expansion. Capacity charges are separate from the City’s rates for water service. New connections begin paying the City’s water rates after they have paid their capacity fee and become ongoing customers.

BWA examined several fee calculation methodologies and ultimately recommends that the City use an average-cost methodology to establish water capacity fees. Fees were calculated based on the estimated present value of water system assets, 10-year Water Capital Improvement Plan project costs, and growth projections over the next 10 years (2020-2030). Proposed fees will be levied based on water meter size according to the maximum flow factor established by the American Water Works Association. BWA’s recommended fees align with industry standards and regional trends and were developed with extensive input from Staff.

Packet Page 163
City of Seaside – Water Capacity Fee Report Page 7

1.2 Government Code
Development impact fees are governed by California Government Code Section 66000 et. seq This section of the Code was initially established by Assembly Bill 1600 (AB 1600) and is commonly referred to as the Mitigation Fee Act. Pursuant to the Code, a development impact fee is not a tax or special assessment but is instead a voluntary fee levied to defray the cost of public facilities needed to serve a new development.

Section 66013 of the Code specifically governs water and wastewater capacity fees. This section of the Code defines a “capacity charge” to mean “a charge for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged.” The Code distinguishes “capacity charges” from “connection fees” which are defined as fees for the physical facilities necessary to make a water or wastewater connection, such as costs related to installation of meters and pipelines from a new building to a water or wastewater main.

According to the Section 66013, a water or wastewater capacity fee “shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed” unless approved by a two-thirds vote. As such, the capacity fees calculated in this report represent the maximum fees that the City can levy. Section 66013 does not detail any specific methodology for calculating capacity fees.

Section 66016 of the Code identifies the procedural requirements for adopting or increasing water and wastewater capacity fees and Section 66022 summarizes the general process by which the fees can be legally challenged. The full text of Sections 66013, 66016 and 66022 are attached in Appendix B.

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City of Seaside – Water Capacity Fee Report Page 8
2 Capacity Fee Calculation Methodology

2.1 Standard Capacity Fee Calculation Methodologies
BWA reviewed the legal framework for establishing capacity fees, the latest information on the City’s water system, and various methodologies for calculating capacity fees. Four widely accepted capacity fee calculation methodologies are summarized below.

1. Average Cost Approach – Recommended Method
Under this approach, the capacity fee is calculated based on the total costs of existing and future water facilities benefiting new development (in current dollars), divided by total projected benefit units in the 10-year capacity fee horizon. The resulting fee represents the average cost of water facilities benefiting growth.

2. Buy-In + Expansion Cost Approach
Under this approach, the capacity fee includes two components: a) a buy-in component to recover an equitable share of costs for existing facilities available to serve new development (in current dollars), plus b) an expansion component to recover the cost of capacity in future facilities needed to serve projected new development.

3. Buy-In Cost Only Approach
Under this approach, the fee is based on the cost of existing facilities and assets (in current dollars) divided by current water system benefit units. The buy-in approach is more commonly used by agencies that are mostly built out with water systems that require minimal future facility improvements.

4. Expansion/Marginal Cost Only Approach
Under this approach, the fee is based on the cost of future expansion-related improvements (in current dollars) divided by the future development units associated with those improvements.

Fees calculated under this approach represent the marginal cost of adding a unit of expansion.

This approach excludes cost recovery for existing facilities and assets that provide benefit to new development.

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2.1.1 BWA Recommended Method: Average Cost Approach
BWA recommends that the City establish a capacity fee for based on the “Average Cost Approach”. The City’s water system has adequate capacity to meet future growth and does not need to expand capacity. New customers should pay an equitable fee to use the existing water system, including current assets and capital improvement projects planned within the 10-year planning period.

2.1.2 Current Customers & Meter Equivalent Units
The City’s current water customers are charged fixed water rates based on ¾” or less meter equivalent units. Demographic data is shown in Table 1 below. The City currently serves 772 water connections, equal to 999 meter equivalent units of ¾” or less water meters. Flow factors are determined by maximum flow factors established by the American Water Works Association (AWWA).

Table 1
2020 Customer Data
Water Meter Size # Meters [1]
Max Flow Rate
(GPM) [2] Max Flow Ratio
3/4" or less
Meter Equivalent
Units
3/4" or less 737 30 1.00 737
1" or less 26 50 1.67 43

1.5" 1 100 3.33 3
2" 1 160 5.33 5
3" 1 300 10.00 10
4" 0 500 16.67 0
6" 6 1000 33.33 200
Total 772 999
[1] 2019 Water Rate Study Update, Bartle Wells Associates/SMWD [2] American Water Works Association Standards, Manual M22, 2nd edition, 2004, page 62.

BWA recommends that water capacity fee benefit units align with AWWA meter flow ratios. All new connections with a water meter requirement of ¾” or less will pay a fee with a factor of

1.00. Larger meter size requirements will pay a higher fee according to the maximum flow ratio of the meter, since increased flow capacity is associated with a larger demand on the water system. This is a widely used method of assessing water capacity fees and will be simple for the City to administer since it aligns with the current water rate structure.

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2.2 Buildout Growth Projection
The City of Seaside anticipates very little growth over the next 10 years according to population estimates and Staff projections of future development. As shown on Table 2, the City can anticipate 15 new meter equivalent units through 2030, representing a growth rate of about .15% per year.

Table 2
Buildout Growth Projections
2020 Meter Equivalent Units 999
Future Growth Meter Equivalents 2030 [1] 15
2030 Total Meter Equivalents 1,014
Annual Growth Rate 0.15%
[1] Seaside Staff Estimate
3 Water Capacity Fee Calculation
Under the methodology described in Section 2.1.1, water capacity fees are designed to recover the average cost of water facilities benefiting growth, including the present value of existing water system facilities and assets, and the cost of system upgrades and expansion needed to serve the City through 2030.

3.1 System Buy-In Component – Existing Assets
Since detailed asset value information was not available, BWA calculated the present value of the water system using asset listings provided by the City and an estimate of replacement cost less depreciation. Replacement costs were estimated using comparable data in the 2020 Water Master Plan developed by Marina Coast Water District nearby. Depreciation was estimated using BWA and Staff estimates, and purchase year data where available. The 2020 system asset value is summarized on Table 3 and provided in detail in Appendix A. This represents the buy-in portion of the capacity fee calculation.

Table 3
Estimated Water System Asset Value
Category 2020 Asset Value [1]
Pipelines (39,043 total ft) $220,805
Pumps (3) $850,000
Storage Tanks (2) $300,000
Groundwater Well (1) $1,200,000
Total Buy-In Portion - Existing Asset Value $2,570,805
[1] Asset listings provided by Seaside Staff
Replacement Cost: MCWD 2020 Master Plan, BWA & Staff Estimates Depreciation: BWA & Staff Estimates
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3.2 System Expansion Component – Capital Improvement Plan The City’s 10-year Capital Improvement Plan outlines projects needed to maintain the water system, including upgrades, expansions, regular maintenance, and new facilities. The Capital Improvement Plan is listed by project in Table 4. The total CIP cost is the expansion portion of the capacity fee.

Table 4
2020-2030 Capital Improvement Plan
Project Description Total Project Cost
Water Security Upgrades $390,000
Well Replacement $1,950,000
Water System Improvements $390,000
Tank Improvements Project $1,200,000
Alternative Water Source $1,010,000
Arc Flash Hazard Mitigation $120,000
Misc. Improvements $430,000
Total Expansion Portion - Capital Improvement Plan $5,490,000 Source: 2019 Water Rate Study Update, Bartle Wells Associates/SMWD

3.3 Water Capacity Fee Calculation
Table 5 shows the detailed calculation of the proposed water capacity fee using the average cost methodology described in Section 2.1.1 and cost components described in Section 3. Fees were calculated using ¾” or less meter equivalent units per the recommendation in Section

2.1.2. Table 5
Proposed Water Capacity Fee Calculation
1 Total Buy-In Portion - Existing Asset Value $3,262,095 2 Total Meter Equivalent Units to 2030 1,014
3 Buy-In Portion of Capacity Fee $/Meter Equivalent (1/2) $3,217 4 Total Expansion Portion - Capital Improvement Plan $5,490,000 2 Total Meter Equivalent Units to 2030 1,014
6 Expansion Portion of Capacity Fee $/Meter Equivalent (4/5) $5,414 7 Proposed Capacity Fee - Average Cost $/Meter Equivalent (3+6) $8,631 Packet Page 168
City of Seaside – Water Capacity Fee Report Page 12
The proposed fee is designed to recover costs for:
- System Buy-In Portion - Existing Facilities & Assets: To be reasonable and conservative, capacity fee recovery accounts for the depreciated value of the City’s water facilities escalated to current dollars using replacement cost estimates from Marina Coast Water District, a similar nearby water agency. - Expansion Cost Component - Capital Projects: The capacity fee recovers capital improvement project costs according to the City’s 10-year Capital Improvement Plan (2020-2030)
Buy-in and expansion costs are divided by total projected meter equivalent units through 2030.

The resulting fee represents the average cost of water facilities benefiting growth.

3.4 Proposed Water Capacity Fees
Table 6 lists the FY 2020-21 proposed water capacity fee schedule by meter size. per the methodology and City information detailed in this report. BWA has calculated fees on a $/meter equivalent unit basis using the proposed methodology described in Section 2.1.1 and calculated in Table 5.

Table 6
Proposed Water Capacity Fees
Meter Size Meter Ratio
FY 2020-21
Proposed Fee
3/4" or less 1.00 $8,631
1" or less 1.67 $14,385

1.5" 3.33 $28,771
2" 5.33 $46,033
3" 10.00 $86,313
4" 16.67 $143,854
6" 33.33 $287,709
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3.5 Capacity Fee Survey of Surrounding Agencies
BWA conducted a capacity fee survey of surrounding water agencies to compare with the City’s proposed fee. The new proposed water capacity fees would place the City in the middle range of single-family capacity fees in the region but far below the average fee, as shown in Figure 1.

Figure 1
2019/20 Water Capacity Fee Survey
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4 Conclusion and Recommendations

4.1 Conclusion
BWA finds that the proposed fees follow generally accepted fee design criteria and adhere to the substantive requirements of California government code. The above proposed capacity fees, calculated using the average-cost methodology and levied based on water meter size, represent the most up to date and equitable distribution of cost for new development in the water enterprise. The proposed fees align with regional standards and equitably recover new development’s share of costs for the water enterprise. BWA recommends that the City adopt the proposed FY 2020/21 fees enclosed in this report by following the procedure to increase capacity fees as follows:

1. Create a nexus study to determine equitable capacity fees (Done by BWA)

2. Set notice the date of a public hearing as required in Government Code

3. Send notice of hearing to developers if specifically requested in writing

4. Hold public hearing and adopt new capacity fees via Resolution

5. Fees may become effective not less than 30 days after adoption

4.2 Future Fee Adjustments
In future years, BWA recommends that the City update its capacity fees annually by adjusting the fees by the change in the Engineering News‐Record Construction Cost Index (San Francisco) to account for future construction cost inflation. Additionally, the City should review and consider updating its capacity fees when substantial revisions are made to anticipated capital improvement costs or to substantial changes in projected demand. In general, BWA recommends that capacity fees be independently reviewed and/or updated approximately once every five years.

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City of Seaside – Water Capacity Fee Report Page A1
Appendix A – Detailed Capacity Fee Calculation
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Appendix B – Government Code Pertaining to Capacity Fees Packet Page 173
Seaside County Sanitation City– Wastewater Capacity Fee Report Page B2 California Government Code
Key Sections Pertaining to Water & Wastewater Capacity Fees Sections 66013, 66016, & 66022
66013
(a) Notwithstanding any other provision of law, when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, unless a question regarding the amount of the fee or charge imposed in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue. (b) As used in this section:
(1) “Sewer connection” means the connection of a structure or project to a public sewer system.
(2) “Water connection” means the connection of a structure or project to a public water system, as defined in subdivision (f) of Section 116275 of the Health and Safety Code. (3) “Capacity charge” means a charge for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities. A “capacity charge” does not include a commodity charge. (4) “Local agency” means a local agency as defined in Section 66000. (5) “Fee” means a fee for the physical facilities necessary to make a water connection or sewer connection, including, but not limited to, meters, meter boxes, and pipelines from the structure or project to a water distribution line or sewer main, and that does not exceed the estimated reasonable cost of labor and materials for installation of those facilities. (6) “Public facilities” means public facilities as defined in Section 66000. (c) A local agency receiving payment of a charge as specified in paragraph (3) of subdivision (b) shall deposit it in a separate capital facilities fund with other charges received, and account for the charges in a manner to avoid any commingling with other moneys of the local agency, except for investments, and shall expend those charges solely for the purposes for which the Packet Page 174
Seaside County Sanitation City– Wastewater Capacity Fee Report Page B3 charges were collected. Any interest income earned from the investment of moneys in the capital facilities fund shall be deposited in that fund. (d) For a fund established pursuant to subdivision (c), a local agency shall make available to the public, within 180 days after the last day of each fiscal year, the following information for that fiscal year:
(1) A description of the charges deposited in the fund. (2) The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund.
(3) The amount of charges collected in that fiscal year. (4) An identification of all of the following:
(A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.
(B) Each public improvement on which charges were expended that was completed during that fiscal year.
(C) Each public improvement that is anticipated to be undertaken in the following fiscal year.
(5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. (e) The information required pursuant to subdivision (d) may be included in the local agency’s annual financial report.
(f) The provisions of subdivisions (c) and (d) shall not apply to any of the following:
(1) Moneys received to construct public facilities pursuant to a contract between a local agency and a person or entity, including, but not limited to, a reimbursement agreement pursuant to Section 66003.

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Seaside County Sanitation City– Wastewater Capacity Fee Report Page B4 (2) Charges that are used to pay existing debt service or which are subject to a contract with a trustee for bondholders that requires a different accounting of the charges, or charges that are used to reimburse the local agency or to reimburse a person or entity who advanced funds under a reimbursement agreement or contract for facilities in existence at the time the charges are collected.
(3) Charges collected on or before December 31, 1998.
(g) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion imposing a fee or capacity charge subject to this section shall be brought pursuant to Section 66022.
(h) Fees and charges subject to this section are not subject to the provisions of Chapter 5 (commencing with Section 66000), but are subject to the provisions of Sections 66016, 66022, and 66023.
(i) The provisions of subdivisions (c) and (d) shall only apply to capacity charges levied pursuant to this section.
(Amended by Stats. 2007, Ch. 94, Sec. 1. Effective January 1, 2008.) 66016
(a) Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this section is available, shall be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice of the meeting on new or increased fees or service charges.

Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The legislative body may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service. At least 10 days prior to the meeting, the local agency shall make available to the public data indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied, and the revenue sources anticipated to provide the service, including General Fund revenues. Unless there has been voter approval, as prescribed by Section 66013 or 66014, no local agency shall levy a new fee or service charge or increase an existing fee or service charge to an amount which exceeds the estimated amount required to provide the service for which Packet Page 176
Seaside County Sanitation City– Wastewater Capacity Fee Report Page B5 the fee or service charge is levied. If, however, the fees or service charges create revenues in excess of actual cost, those revenues shall be used to reduce the fee or service charge creating the excess.
(b) Any action by a local agency to levy a new fee or service charge or to approve an increase in an existing fee or service charge shall be taken only by ordinance or resolution. The legislative body of a local agency shall not delegate the authority to adopt a new fee or service charge, or to increase a fee or service charge.
(c) Any costs incurred by a local agency in conducting the meeting or meetings required pursuant to subdivision (a) may be recovered from fees charged for the services which were the subject of the meeting.
(d) This section shall apply only to fees and charges as described in Sections 51287, 56383, 65104, 65456, 65584.1, 65863.7, 65909.5, 66013, 66014, and 66451.2 of this code, Sections 17951, 19132.3, and 19852 of the Health and Safety Code, Section 41901 of the Public Resources Code, and Section 21671.5 of the Public Utilities Code. (e) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion levying a fee or service charge subject to this section shall be brought pursuant to Section 66022.
(Amended by Stats. 2006, Ch. 643, Sec. 19. Effective January 1, 2007.) 66022
(a) Any judicial action or proceeding to attack, review, set aside, void, or annul an ordinance, resolution, or motion adopting a new fee or service charge, or modifying or amending an existing fee or service charge, adopted by a local agency, as defined in Section 66000, shall be commenced within 120 days of the effective date of the ordinance, resolution, or motion.

If an ordinance, resolution, or motion provides for an automatic adjustment in a fee or service charge, and the automatic adjustment results in an increase in the amount of a fee or service charge, any action or proceeding to attack, review, set aside, void, or annul the increase shall be commenced within 120 days of the effective date of the increase. (b)Any action by a local agency or interested person under this section shall be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

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Seaside County Sanitation City– Wastewater Capacity Fee Report Page B6 (c) This section shall apply only to fees, capacity charges, and service charges described in and subject to Sections 66013, 66014, and 66016.
(Amended by Stats. 2006, Ch. 643, Sec. 20. Effective January 1, 2007.

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ATTACHMENT 4

SAMPLE CITY OF SEASIDE

PROFESSIONAL SERVICES AGREEMENT
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<<PROJECT NAME>>
Rev. 1/18 Page 1 COS Design PSA

CITY OF SEASIDE/SEASIDE COUNTY SANITATION DISTRICT

DESIGN PROFESSIONAL SERVICE AGREEMENT

FOR CONSTRUCTION PROJECTS
(INSERT PROJECT NAME)
THIS AGREEMENT, is made and effective ____________________, between the City of Seaside, a municipal corporation ("Agency") and [insert consultant name], a [sole proprietorship, partnership, limited liability partnership, corporation] (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on the effective date above and shall remain and continue in effect until tasks described herein are completed, but in no event later than <<DATE>>, unless sooner terminated pursuant to the provisions of this Agreement.

2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

5. PAYMENT
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<<PROJECT NAME>>
Rev. 1/18 Page 2 COS Design PSA
(a) The Agency agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed [AMOUNT] dollars ($XXXXXX.XX) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. (b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the Agency City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by Agency City Manager and Consultant at the time Agency's written authorization is given to Consultant for the performance of said services.
(c) Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the Agency disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

7. DEFAULT OF CONSULTANT
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<<PROJECT NAME>>
Rev. 1/18 Page 3 COS Design PSA
(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, Agency shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the Agency Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default.

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<<PROJECT NAME>>
Rev. 1/18 Page 4 COS Design PSA

10. INSURANCE
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<<PROJECT NAME>>
Rev. 1/18 Page 5 COS Design PSA
Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit D attached to and part of this Agreement.

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<<PROJECT NAME>>
Rev. 1/18 Page 6 COS Design PSA

16. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt Packet Page 185
<<PROJECT NAME>>
Rev. 1/18 Page 7 COS Design PSA
requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To Agency: __City of Seaside__________
__440 Harcourt Ave________
__Seaside, CA 93955_______
Attention: City Clerk
To Consultant: ________________________
____________________ __
__________________ __

17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the Agency. Because of the personal nature of the services to be rendered pursuant to this Agreement, _________ shall be the Project Manager and Engineer of Record for the services described in this Agreement.
__________ may use assistants, under its direct supervision, to perform some of the services under this Agreement. Consultant shall provide Agency fourteen (14) days' notice prior to the departure of ____________ from Consultant's employ.

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<<PROJECT NAME>>
Rev. 1/18 Page 8 COS Design PSA

21. WORK SCHEDULED/TIME OF COMPLETION
Note: This section is optional and should be included only when the project is particularly time-sensitive.

AGENCY and CONSULTANT agree that time is of the essence in this AGREEMENT.

AGENCY and CONSULTANT further agree that CONSULTANT's failure to perform on or at the times set forth in this AGREEMENT will damage and injure AGENCY, but the extent of such damage and injury is difficult or speculative to ascertain.

Consequently, AGENCY and CONSULTANT agree that any failure to perform by CONSULTANT at or within the times set forth herein shall result in liquidated damages of [Insert amount] dollars ($__.00) per day for each and every day such performance is late or delayed. AGENCY and CONSULTANT agree that such sum is reasonable and fair. Furthermore, AGENCY and CONSULTANT agree that this AGREEMENT is subject to Government Code Section 53069.85 and that each party hereto is familiar with and understands the obligations of said Section of the Government Code.

22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL
Consultant is bound by the contents of Agency's Request for Proposal, Exhibit "C" hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Consultant, Exhibit "D" hereto. In the event of conflict, the requirements of Agency's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

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<<PROJECT NAME>>
Rev. 1/18 Page 9 COS Design PSA
CONSULTANT: _________________
By: ______________________________ Date:_________________ <PRINT NAME>, <TITLE>
City of Seaside
A Municipal Corporation
______________________________ Date:_________________
Jaime Fontes, City Manager
Attachments: Exhibit A Scope of Work
Exhibit B Consultant Proposal
Exhibit C Insurance Requirements
Exhibit D Request for Proposal (if applicable, delete if no RFP) Packet Page 188
<<PROJECT NAME>> EXHIBIT
A

EXHIBIT A

SCOPE OF WORK
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<<PROJECT NAME>> EXHIBIT
C

EXHIBIT C

Note: Verify minimum limit for each coverage with Risk Manager.

Note: May need to delete workers' compensation and employer's liability insurance requirements for certain sole proprietorships, partnerships, or corporations without employees.

Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

Consultant shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees and volunteers.

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<<PROJECT NAME>> EXHIBIT
C
Note: If the required limits for general liability, auto and employer’s liability are $1 million or less, the following paragraph may be omitted.

Umbrella or excess liability insurance. [Optional depending on limits required].

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<<PROJECT NAME>> EXHIBIT
C
Agency’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Agency has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Agency will be promptly reimbursed by Consultant or Agency will withhold amounts sufficient to pay premium from Consultant payments.

In the alternative, Agency may cancel this Agreement.

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<<PROJECT NAME>> EXHIBIT
C
Additional insured status. General liability policies shall provide or be endorsed to provide that Agency and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

Packet Page 193
Addendum #1
2023 Water Rate and Capacity Fee Studies, Seaside Municipal Water System

Page 1 of 4 ends

Seaside City CouncilSeptember 7, 2023

Seaside City Council
September 7, 2023