St. Helena City Council
March 22, 2022

Raftelis Financial Consultants March 22, 2022
SECTION 7 – INSURANCE REQUIRED
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 the Consultant, its agents, representatives, or employees, as indicated:

A. Minimum Scope of Insurance. Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.

B. Minimum Limits of Insurance. Consultant shall maintain limits no less than:

1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations, as applicable. If Commercial General Liability Insurance or other form with a General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

C. Professional Liability Insurance. When Consultant under this Agreement is duly licensed under California Business and Professions Code as an architect, landscape architect, environmental engineer or other professional engineer, or land surveyor (“design professional”), Consultant shall maintain at least $2,000,000 of professional liability insurance. When Consultant is not a design professional, Consultant shall maintain at least $1,000,000 of professional liability insurance combined single limit for each occurrence, insuring against professional errors and omissions in the Services performed by Consultant under this Agreement, including, without limitation, claims for negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advise arising out of, resulting from, or in connection with Services performed by Consultant under this Agreement.

D. Excess Limits. If Consultant maintains higher limits than the minimums shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

E. Primary Coverage. For any claims related to this contract the Consultants insurance coverage shall be primary insurance as respects to City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of Consultants insurance and shall not contribute with it.

Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions of $25,000 or greater must be declared to and approved by the City.

G. Other Insurance Provisions. The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its agent, officers, officials, employees, and volunteers are to be covered as additional insured as respects: liability arising out of work or operations performed by the Consultant or Consultant’s subconsultants; or automobile owned, leased, hired or borrowed by the Consultant.

2. For any claims related to Consultant’s conduct while performing the work of this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its agents, officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its agents, officers, officials, employees or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.

4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subsection (b) of Section 2782 of the Civil Code.

H. Waiver of Subrogation. Consultant’s commercial general liability, automobile liability, workers’ compensation, and employer’s liability policies shall be endorsed with a waiver of subrogation. The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its agents, officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City.

I. The Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.

J. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on forms that conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.

SECTION 8 – INDEMNIFICATION
A. To the fullest extent allowed by law (including without limitation California Civil Code Sections 2782 and 2782.8), as may be applicable, Consultant shall indemnify, defend, and hold harmless City, its agents, officers, officials, employees, representatives, and volunteers from claims, demands, suits, loss, damages, injury, and/or liability (including any and all costs and expenses in connection therewith, including legal fees and expert witness costs) (collectively, Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
“Liabilities”), caused by the negligent or otherwise wrongful act or omission of Consultant, its officers, agents, employees, subconsultants, and subcontractors, or any of them, under or in connection with this Agreement; and Consultant agrees at its own cost, expense and risk to defend claims, actions, suits, or other legal proceedings brought or instituted against City, its agents, officers, officials, employees and volunteers, or any of them, caused by such negligent or otherwise wrongful act or omission, and to pay and satisfy any resulting judgments.

B. When Consultant under this Agreement is duly licensed under California Business and Professions Code as an architect, landscape architect, professional engineer, or land surveyor (i.e., a “design professional,” pursuant to Civil Code § 2782.8(c)), the provisions of this section regarding Consultant’s duty to defend and indemnify apply only to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant.

C. If any action or proceeding is brought against Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify Indemnitees as provided above, Consultant, upon notice from City, shall defend Indemnitees at Consultant’s expense by counsel reasonably acceptable to City, such acceptance not to be unreasonably withheld. Indemnitees need not have first paid for any of the matters to which Indemnitees are entitled to Indemnification in order to be so indemnified. The insurance required to be maintained by Consultant shall ensure Consultant’s obligations under this section, but the limits of such insurance shall not limit the liability of Consultant hereunder. The provisions of this section shall survive the expiration or earlier termination of this Agreement.

D. The provisions of this section do not apply to claims to the extent occurring as a result of the City’s sole negligence, active negligence, or willful acts or misconduct.

E. Duty to Cooperate. Each party shall notify the other party immediately in writing of any claim or damage related to activities or Services performed under this Agreement. The parties shall cooperate with each other in the investigation and disposition of all Liabilities arising out of the activities or Services under this Agreement.

F. In the event that Consultant executes any subconsulting agreements in connection with the Services performed under this Agreement, Consultant shall place in all such subconsulting agreements, and cause its subconsultants to agree to, the indemnity and insurance obligations in favor of City and other Indemnitees, as provided herein, in the exact form and substance of those contained in this Agreement.

SECTION 9 – INDEPENDENT CONTRACTOR STATUS
A. Consultant is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of City. Consultant shall have no authority to bind City in any manner or to incur an obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City.

B. 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 City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Consultant or any of Consultant’s officers, employees or agents, except as Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees or agents are in any manner officials, officers, employees or agents of City.

C. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights.

SECTION 10 – CONFLICTS OF INTEREST AND ANTI-FRAUD AND ANTICORRUPTION POLICIES A. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of Services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the City Manager. Consultant agrees to at all times avoid conflicts with the interests of City in the performance of this Agreement.

B. City understands and acknowledges that Consultant is, as of the date of execution of this Agreement, independently involved in the performance of non-related Services for other governmental agencies and private parties. Consultant is aware of any stated position of City relative to such projects. Any future position of City on such projects shall not be considered a conflict of interest for purposes of this section.

C. Consultant understands and acknowledges City maintains an anti-fraud and anticorruption policy to protect the City, its operations, and its employees from and against financial risks, operational breaches, and unethical, fraudulent and corrupt activities. Consultant represents and warrants that Consultant, its subcontractor(s) / subconsultant(s) and their respective employees providing Services pursuant to the Agreement are (1) in good standing; (2) have not been previously investigated, convicted, or debarred for fraudulent or corrupt activities; (3) will not participate in fraudulent or corrupt activities, and (4) will take steps to ensure that its employees and subcontractor(s) / subconsultant(s) employees do not participate in any fraudulent or corrupt activities. Consultant acknowledges and agrees further that it has a duty to and will report to City any information or incident(s) about possible fraudulent or corrupt activities Consultant may discover, and will cooperate in any fraud or corruption investigation conducted, with respect to Consultant’s service provided pursuant to this Agreement.

SECTION 11 – OWNERSHIP OF DOCUMENTS
A. All deliverables prepared, developed or discovered by Consultant in the course of providing any Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Consultant; provided that any reuse or use other than as contemplated in this Agreement shall be at the sole risk of City. When requested by City, but no later than three years after project completion, Consultant shall deliver to City all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.

Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
SECTION 12 – CONFIDENTIAL INFORMATION; RELEASE OF

INFORMATION
A. All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the City Manager, except as may be required by law.

B. Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement.

Response to a subpoena or court order shall not be considered “voluntary” provided consultant gives City notice of such court order or subpoena.

C. If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Consultant’s conduct.

D. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors 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 party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite such response.

SECTION 13 – SUSPENSION OF WORK
City may, at any time, by ten (10) days written notice suspend further performance by Consultant. All suspensions shall extend the time schedule for performance in a mutually satisfactory manner and Consultant shall be paid for Services performed and reimbursable expenses incurred prior to the suspension date.

SECTION 14 – COMPLIANCE WITH LAW
Consultant shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement. Consultant shall obtain any and all licenses, permits and authorizations necessary to perform the Services set forth in this Agreement. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Consultant to comply with this section.

Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
SECTION 15 – COMPLIANCE WITH CIVIL RIGHTS
During the performance of this contract, Consultant agrees as follows:

A. Equal Employment Opportunity. In connection with the execution of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, religion, color, ancestry, age, sexual orientation, gender, gender identity and gender expression as protected categories specifically and expressively in that category, physical handicap, medical condition, marital status, sex, or national origin. Such actions shall include, but not be limited to, the following: employment, promotion, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training including apprenticeship.

B. Nondiscrimination Civil Rights Act of l964. Consultant will comply with all federal regulations relative to nondiscrimination to federally-assisted programs.

C. Solicitations for Subcontractors including Procurement of Materials and Equipment.

In all solicitations, either by competitive bidding or negotiations, made by Consultant for work to be performed under a subcontract, including procurement of materials or leases of equipment, each potential subcontractor, supplier, or lessor shall be notified by Consultant of Consultant’s obligations under this Agreement and the regulations relative to nondiscrimination.

SECTION 16 – COMPLIANCE WITH CALIFORNIA LABOR CODE

REQUIREMENTS
A. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

B. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

C. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.

SECTION 17 – AUDIT AND INSPECTION OF RECORDS
A. Records of Consultant’s direct labor costs, payroll costs, and reimbursable expenses pertaining to this project covered by this Agreement will be kept on a generally recognized accounting basis and made available to City if and when required for a period of up to 3 years from the date of Consultant’s final invoice.

B. Consultant shall maintain all documents and records prepared by or furnished to Consultant during the course of performing the Services for at least three (3) years following completion of the Services. Such records include, but are not limited to, correspondence, internal memoranda, technical reports and investigations, calculations, books and accounts, accounting records documenting its work under its Agreement, and invoices, payrolls, records and all other data related to matters covered by this Agreement.

C. Consultant shall permit City to audit, examine and make copies, excerpts and transcripts from such records, and the Consultant shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any matter whatsoever for three (3) years after City makes the final or last payment or within three (3) years after any pending issues between City and Consultant with respect to this Agreement are closed, whichever is later.

SECTION 18 – LIMITATION OF LIABILITY
A. Consultant agrees that any liability of City arising in connection with this Agreement shall be limited exclusively to the City-entity identified as the “City” under this Contract. Under no circumstance shall any other City-entity be liable to Consultant under any theory, whether in contract, tort, or otherwise, and Consultant waives unconditionally any such claims. Consultant hereby waives and release other City-entites from any liability under this Agreement.

B. Notwithstanding any other provision of this Agreement, in no event shall City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this Agreement or the Services performed hereunder.

Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
SECTION 19 – COOPERATION BY CITY
All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the work as outlined in the Exhibit A, “Scope of Services”, shall be furnished to Consultant in every reasonable way to facilitate, without undue delay, the work to be performed under this Agreement.

SECTION 20 – NOTICES
All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, sent by facsimile, email, or first class mail, addressed as follows:

To City: City Manager
1572 Railroad Avenue
St. Helena, California 94574
To Consultant: Jim Armstrong, Principal Consultant
445 S. Figuero Street, Suite 1925
Los Angeles, CA 90071
[email protected]
Notice shall be deemed effective on the date personally delivered or transmitted by facsimile, email, or, if mailed, three (3) days after deposit in the custody of the U.S. Postal Service.

SECTION 21 – TERMINATION
A. City may terminate this Agreement, with or without cause, at any time by giving ten (10) days written notice of termination to Consultant. If such notice is given, Consultant shall cease immediately all work in progress.

B. If either Consultant or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant, or City may terminate this Agreement immediately upon written notice.

C. Upon termination of this Agreement by either Consultant or City, all property belonging to City which is in Consultant’s possession shall be delivered to City. Consultant shall furnish to City a final invoice for work performed and expenses incurred by Consultant, prepared as set forth in this Agreement.

SECTION 22 – ATTORNEYS’ FEES
If litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing party in such litigation or other proceeding shall be entitled to an award of reasonable attorneys’ fees, costs and expenses, in addition to any other relief to which it Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
may be entitled. In addition, any legal fees, costs and expenses incurred to enforce the provisions of this Agreement shall be reimbursed to the prevailing party.

SECTION 23 – ENTIRE AGREEMENT
This Agreement, including the attached Exhibits, is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Consultant and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding unless in writing duly executed by the parties or their authorized representatives.

SECTION 24 – SUCCESSORS AND ASSIGNS
This Agreement shall be binding on the heirs, executors, administrators, successors and assigns of the parties. However, this Agreement shall not be assigned by Consultant without written consent of the City.

SECTION 25 – CONTINUITY OF PERSONNEL
Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff assigned to perform the Services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff assigned to perform the Services required under this Agreement, prior to any such performance.

SECTION 26 – DEFAULT
In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default and may terminate this Agreement immediately by written notice to Consultant.

SECTION 27 – WAIVER
Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision, or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or Services by Consultant shall not constitute a waiver of any of the provisions of this Agreement.

SECTION 28 – LAW TO GOVERN; VENUE
This Agreement shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Napa. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Northern District of California, in San Francisco.

Agenda Item #13.1.

Raftelis Financial Consultants March 22, 2022
SECTION 29 – SEVERABILITY
If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).

SECTION 30 – THIRD PARTY BENEFICIARIES
Consultant’s subconsultants shall agree to be bound to the terms of the Agreement to the extent of their scope of Services, including but not limited to, terms regarding indemnity and dispute resolution, and shall agree that City is deemed an express third party beneficiary of their subconsultant agreements. Nothing contained in this Agreement, however, shall operate to confer such or similar rights or benefits on persons or entities not party to this Agreement.

SECTION 31 – STATUTES OF LIMITATION
As between the parties to this Agreement, any applicable statute of limitations for action arising out of, pertaining to, or relating to any act or failure to act in connection with this Agreement shall commence to run on the date of City’s issuance of the final Certificate for Payment, or termination of this Agreement, whichever is earlier, except for latent defects and/or deficiencies, for which the applicable statute of limitation shall begin to run upon discovery of the defect and/or deficiency and its cause.

SECTION 32 – SPECIAL PROVISIONS
This Agreement is subject to the following special provisions: none.

IN WITNESS WHEREOF, the parties hereto have accepted, made, and executed this Agreement upon the terms, conditions, and provisions above stated, the day and year first above written.

Consultant:

By: ________________________________
Name: ______________________________
Title:________________________________
City:

By: ________________________
Name: James McCann
Title: Interim City Manager
Approved as to Form:

By: _________________________________
Name: Ethan Walsh
Title: City Attorney
Agenda Item #13.1.

City of St. Helena
Water and Wastewater Rate Study
PROPOSAL / JANUARY 21, 2022
EXHIBIT A Agenda Item #13.1.

Table of
Contents
1 Part 1: Cover Letter/Executive Summary
3 Part 2: Firm Qualifications and Experience
14 Part 3: Consultant Identification and Team
52 Part 4: Specific Rate Study Approach
65 Part 5: Total Cost and Hourly Rates
68 Exceptions
Photo on cover courtesy of James Daisa (Flickr)
Raftelis is registered with
the U.S. Securities and
Exchange Commission
(SEC) and the Municipal
Securities Rulemaking
Board (MSRB) as a
Municipal Advisor.

Registration as a Municipal Advisor is a
requirement under the Dodd-Frank Wall
Street Reform and Consumer Protection Act.

All firms that provide financial forecasts that
include assumptions about the size, timing,
and terms for possible future debt issues, as
well as debt issuance support services for
specific proposed bond issues, including
bond feasibility studies and coverage
forecasts, must be registered with the SEC
and MSRB to legally provide financial
opinions and advice. Raftelis’ registration as
a Municipal Advisor means our clients can be
confident that Raftelis is fully qualified and
capable of providing financial advice related
to all aspects of financial planning in
compliance with the applicable regulations of
the SEC and the MSRB.

Diversity and inclusion
are an integral part of
Raftelis’ core values.

We are committed to doing our part to fight
prejudice, racism, and discrimination by
becoming more informed, disengaging with
business partners that do not share this
commitment, and encouraging our employees
to use their skills to work toward a more just
society that has no barriers to opportunity.

Agenda Item #13.1.

RAFTELIS 1
445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 www.raftelis.com
January 21, 2022
Ms. Mandy Kellogg
Assistant Administrative Services Director
City of St. Helena
1572 Railroad Avenue
St. Helena, CA 94574
Subject: Proposal for Water and Wastewater Rate Study
Dear Ms. Kellogg:

Raftelis is pleased to submit this proposal to conduct a Water and Wastewater Cost of Service and Rate Design Study for the City of St. Helena (City). We believe that our unique combination of qualifications, resources, experience, and familiarity with the City will ensure a value-added project that will benefit the City and its ratepayers.

As the largest firm in California and the country specializing in financial, rate, and management consulting for water, wastewater, and stormwater utilities, Raftelis is confident in our ability to develop optimal rate structures and deliver a sustainable financial plan that satisfies the requirements of Proposition 218. We have assisted numerous agencies in California and across the United States with successfully implementing conservation-based rate structures, with special consideration for climate variation, cyclical drought conditions, and long-term passive conservation. The proposed Raftelis team has completed similar rate studies for many California agencies, including the City of Camarillo, Mammoth Community Water District, Montecito Water District, Soquel Creek Water District, and the City of Ventura.

A primary study objective is to show the nexus between the costs incurred by the City and the proposed rates and fees paid by its customers. The nexus between rates and costs incurred is critical to develop and propose alternative rate structures and must consider long-term baseline customer demands, legislated conservation mandates, heightened awareness of local water supply challenges, and increased scrutiny of water rates from the public at large. Upon completion of the City's financial plan and rate model development, it is vitally important to present the study in a clear and transparent report. Our reports walk the reader through the numbers from budget to final rates to tell the rate story, consistent with the requirements for an administrative record, to defend the proposed rates should there be a subsequent legal challenge. The Study Report will present proposed rates and any structural changes in an easy-to-understand format leading to public understanding, support, and improved defensibility.

To assist the City with this project, we have assembled the core team that has recently assisted with the water shortage emergency project. The proposed team has extensive experience, firm knowledge of the City, substantial community outreach success, and a reputation for quality service. I will serve as Project Director and be responsible for the project's success to your satisfaction. I have nearly 40 years of experience in California municipal government management, including serving as the City Administrator for the City of Santa Barbara and the City Manager of the City of Fullerton.

Kevin Kostiuk will serve as Project Manager and the main point of contact for the consultant team, managing the day-today aspects of the project and ensuring it stays on schedule, on budget, and effectively meets the City's objectives. Kevin has 13 years of professional experience with a focus on water cost of service, drought rate modeling, and alternative water rate structures. Sudhir Pardiwala PE, will serve as Technical Reviewer. With over 40 years of industry experience, PART 1 – COVER LETTER / EXECUTIVE SUMMARY
Agenda Item #13.1.

RAFTELIS 2
445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 www.raftelis.com
including work on approximately 300 financial studies for water and/or wastewater utilities, Sudhir will provide insights into a variety of cost of service and rate-setting matters. Additionally, Sudhir is a licensed Professional Engineer in California and is registered with the Securities and Exchange Commission as a Municipal Advisor Representative.

In addition to the project team, we will have access to Raftelis' skilled California and national consultants to conduct analyses and prepare deliverables. With more than 130 consultants, these staff have varied backgrounds in environmental science, engineering, finance, accounting, economics, data science, local government, utility management, and communications.

Our proposed hours and fee proposal assumes a substantial number of individual, onsite meetings. Depending on the direction of the pandemic, the City's willingness to hold virtual meetings, and/or the ability to consolidate onsite meetings over multiple days, we would be glad to revisit our proposal and identify areas for cost savings.

Raftelis is excited to have the opportunity to assist the City with this critical study. If you have any questions, please don't hesitate to contact us.

Jim Armstrong, Project Director
Phone: 805.886.9688 / Email: [email protected]
Kevin Kostiuk, Project Manager
Phone: 213.262.9309 / Email: [email protected]
Sincerely,
Principal Consultant
Agenda Item #13.1.

RAFTELIS 3
WHO IS
Raftelis

HELPING LOCAL GOVERNMENTS AND UTILITIES THRIVE
Local government and utility leaders partner with Raftelis to transform their organizations by enhancing performance, planning for the future, identifying top talent, improving their financial condition, and telling their story. We’ve helped more than 600 organizations in the last year alone. We provide trusted advice, and our experts include former municipal and utility leaders with decades of hands-on experience running successful organizations. People who lead local governments and utilities are innovators—constantly seeking ways to provide better service to the communities that rely on them. Raftelis provides management consulting expertise and insights that help bring about the change that our clients seek.

Firm Information
Size of the Firm: Raftelis has 14 offices located strategically across the U.S., including two offices in California Size of the Firm’s Staff: 162 employees, including 139 consultants Location of Office Performing the Engagement: 445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 + VISIT RAFTELIS.COM TO LEARN MORE
PART 2 – FIRM QUALIFICATIONS AND EXPERIENCE
Agenda Item #13.1.

RAFTELIS 4
We believe that Raftelis is the right fit for this project. We provide several key factors that will benefit St. Helena and help to make this project a success.

RESOURCES & EXPERTISE - Specialized and highly experienced utility rate consultants that all stakeholders can have confidence in. With more than 130 consultants, Raftelis has the largest waterindustry financial and rate consulting practice in the nation. Our depth of resources will allow us to provide the City with the technical expertise necessary to meet your objectives. In addition to having many of the industry’s leading rate consultants, we also have experts in key related areas, like stakeholder engagement and data analytics, to provide additional insights as needed.

DEFENSIBLE RECOMMENDATIONS - Industry knowledge to ensure methodologies reflect best practices. Our senior staff is involved in shaping industry standards by chairing various committees within the American Water Works Association (AWWA) and the Water Environment Federation (WEF). Raftelis’ staff members have also co-authored many industry-standard books regarding utility finance and rate setting.

Being so actively involved in the industry will allow us to keep the City informed of emerging trends and issues and to be confident that our recommendations are insightful and founded on sound industry principles. In addition, with Raftelis’ registration as a Municipal Advisor, you can be confident that we are fully qualified and capable of providing financial advice related to all aspects of utility financial planning in compliance with federal regulations.

HISTORY OF SIMILAR SUCCESSES - A long history of project experience to ensure successful execution. Raftelis staff has assisted 1,000+ utilities throughout the U.S. with financial and rate consulting services with wide-ranging needs and objectives. Our extensive experience will allow us to provide innovative and insightful recommendations to the City and will provide validation for our proposed methodology ensuring that industry best practices are incorporated.

USER-FRIENDLY MODELING - Powerful and easy-to-use tools for ongoing financial management success. Raftelis has developed some of the most sophisticated yet user-friendly financial/rate models available in the industry. Our models are tools that allow us to examine different policy options and cost allocations and their financial/customer impacts in real time. Our models are non-proprietary and are developed with the expectation that they will be used by the client as a financial planning tool long after the project is complete.

EXPERTS ON CALIFORNIA REGULATORY REQUIREMENTS - This expertise will allow the City to be confident that our recommendations take into account all of these regulatory requirements.

The regulatory environment in California has become more stringent due to Proposition 218. Besides developing well-thought-out financial plans, Raftelis staff members are very knowledgeable about these regulations and have made presentations on this subject at various industry conferences. In addition, we are frequently called on to be expert witnesses regarding these regulatory matters.

Agenda Item #13.1.

RAFTELIS 5
28years
serving the
public sector

OUR TEAM INCLUDES
130+ consultants focused on
finance/management/communication/
technology for the public sector
5 members of
AWWA and WEF utility finance and
management committees and subcommittees
chairs
& 20
&the
Immediate Past-President of AWWA

RAFTELIS HAS PROVIDED ASSISTANCE FOR
1,200+ public agencies
and utilities
25%of the
U.S. population
that serve more than
38of the nation’s
50 largest cities
including the agencies serving
1,000+ projects
for
in the past year alone, we worked on
600+ agencies
in 46 states
How we stack up
Agenda Item #13.1.

RAFTELIS 6
Experience

RAFTELIS HAS THE MOST EXPERIENCED PUBLIC UTILITY FINANCIAL AND MANAGEMENT CONSULTING PRACTICE IN THE NATION.

Our staff has assisted more than 1,200 public agencies and utilities across the U.S., including some of the largest and most complex agencies in the nation. In the past year alone, Raftelis worked on more than 900 financial, organizational, and/or technology consulting projects for over 600 agencies in 44 states, the District of Columbia, and Canada. Here, we have provided descriptions of projects that we have worked on that are similar in scope to the City’s project. We have included references for each of these clients and urge you to contact them to better understand our capabilities and the quality of service that we provide.

Montecito Water District CA
Reference: Nicholas Turner, PE, General Manager
583 San Ysidro Road, Santa Barbara CA, 93108
P: 805.969.2271 / E: [email protected]
Total Hours: 457 hours
Date of Engagement: 2019-2020
Partners: None
Final Report: Click here
Scope of Work: The Montecito Water District (MWD) provides water service to residential and agricultural users in coastal Santa Barbara County. This coastal community has reduced its reliance on imported water sources by investing in

RAFTELIS HAS PROVIDED FINANCIAL/

ORGANIZATIONAL/TECHNOLOGY ASSISTANCE

TO UTILITIES SERVING MORE THAN
25% OF THE U.S. POPULATION.

Agenda Item #13.1.

RAFTELIS 7
the neighboring municipality's desalination plant. This change modified the cost structure paid by customers while improving reliability of service. The District now has a wide variety of source waters including groundwater, local surface water, State Project water, and contracted desalination water.

The District hired Raftelis in late 2019 to provide rate-setting, communications, and other services to the District. The 2020 rate study included restructuring of the District’s water rates and inclusion of the water supply agreement for desalination water into the District’s cost structure. Beginning in December 2019 Raftelis conducted multiple workshops with the Board of Directors to develop a rate and policy framework to determine how costs are allocated and recovered from their numerous customer classes and water users. The updated rate structure addresses the Board’s policy objectives and better reflects the District’s customer demographics and water demand patterns. Final rates were presented to the Board in April 2020 with a Proposition 218 Public Hearing in June 2020, with simultaneous adoption of the water supply agreement with the City of Santa Barbara. The first of five years of rates was implemented on July 1, 2020.

The rate study included working with the District’s Public Information Officer to develop outreach materials, create a stakeholder engagement and communications plan, and assist with public meetings. Raftelis’ creative services developed mailers, the Proposition 218 public notice, standalone infographics, and presentation materials for the District. Matt Wittern managed the implementation of a strategic communications plan that included development of a variety of communication tools and pieces that effectively made the case for why the changes planned will provide long-term community benefits.

Subsequent to the rate study, Raftelis engaged the District to complete a staffing survey for the District’s personnel based on local, regional, and national peers and industry trends. Raftelis has again been retained by the District to develop a long-range financial plan to evaluate future capital repair and replacement program scenarios.

City of San Buenaventura (Ventura Water) CA
Reference: Susan Rungren, General Manager
336 Sanjon Road, Ventura, CA 93002
P: 805.652.4523 / E: [email protected]
Total Hours: 359 hours (original budget)
Date of Engagement: 2020-21
Partners: None
Final Report: Click here
Scope of Work: Raftelis provides water, wastewater, and recycled water rate services for the City of Ventura (City). The City is under a federal Consent Decree order that requires the City to change the process and point of discharge for wastewater effluent, currently discharged to the local estuary. The improvements necessary, when coupled with an advanced water treatment plant to produce raw water for the water utility, is estimated at more than $280 million, for which the City is now beginning financing discussions.

The most recent five-year rate study was conducted over the course of 2020 and 2021. The goal of the study was to develop a 10-year financial plan to sustainably fund the City’s capital program, including the $280 million indirect potable reuse (IPR) project; as well as to revise the water and wastewater rate structures to incentivize conservation, maximize affordability for essential water use, and maintain revenue stability. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, review of the City’s user classifications, water demand patterns, cost of service analyses for three utility services, and rate design for City users. The study included nearly a dozen meetings with the City Water Commission, a citizen advisory group charged as policymakers by the City Council.

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Through a collaborative process, buy-in was achieved for a recommendation providing five years of rates (the maximum period allowable by law), revised rate structures, and reasonable cost allocations between the City’s utility enterprise funds. The recommended rates were implemented in July of 2021. Raftelis is under contract with the city for a capacity fee study and finance support. Raftelis has also completed a drought study for various stages of conservation and targeted cutbacks of water required by the state and the City in a prior drought.

City of Camarillo CA
Reference: Mark S. Uribe, Director of Finance
601 Carmen Drive, Camarillo, CA 93010
P: 805.388.5358 / E: [email protected]
Total Hours: 544 hours
Date of Engagement: Ongoing (Annual)
Partners: None
Final Report: Click here
Scope of Work: The City of Camarillo (City) originally engaged Raftelis in 2011 to conduct a comprehensive water and wastewater rate study to independently assess and evaluate existing water and wastewater rates for compliance with industry standards and California regulations, and to develop a financial plan to ensure financial sufficiency while minimizing rate impacts to the greatest degree possible. The study included a comprehensive review of the water and wastewater enterprises’ revenue requirements, a review of the City’s user classification and usage patterns, a cost-ofservice analysis, the development of water and wastewater connection fees, the design of water and wastewater rates, and the analysis of customer impacts along with a rate survey of neighboring agencies.

The City relies heavily upon imported water and has experienced a reduction of its groundwater allocation within the Fox Canyon Basin due to saltwater intrusion. To help mitigate the impacts from drought and increasing source costs, the City has developed a recycled water system to provide non-potable supply to irrigators and other non-residential accounts within the service area. In 2015, Raftelis developed a financial plan for the new recycled water enterprise. As part of the Study, Raftelis conducted a cost-of-service analysis and developed recycled water rates. Recycled water rates were adopted by City Council, in conjunction with potable rates, in July 2016.

The City adopts rates on a two-year cycle and the most recent rate cycle included rebuilding long-term financial plan models, revising the wastewater utility’s rate structure, and performing a cost-of-service analysis for the sewer utility (2019). The current rate cycle (2021) includes an updated water cost of service analysis and proposed revisions to the City’s residential tiered rate structure. Presentations are made each year to the City Manager, the City’s Utility Committee, and to City Council. Rates were last successfully adopted in December 2020. The current study rate proposal and recommendations are planned for the spring of 2022 with new rates in effect July 1, 2022.

During the height of the prior state-wide drought, the City contracted with Raftelis to evaluate emergency drought rates as a conservation and revenue recovery tool. The existing financial plan model was adapted and Raftelis developed multiple scenarios based upon the City’s water supply condition stages.

Agenda Item #13.1.

RAFTELIS 9
Mammoth Community Water District CA
Reference: Jeffrey Beatty, Finance Manager
1315 Meridian Blvd. Mammoth Lakes, CA 93546
P: 760.934.2596 ext 221 / E: [email protected]
Total Hours: 373 hours
Date of Engagement: 2020-21
Partners: None
Final Report: Click here
Scope of Work: Mammoth is a winter tourist destination for Californians. This small resort community, with a permanent population of more than 8,000 and peak transient visitor population of 35,000, is located on the eastern slope of the Sierra Nevada at an elevation of approximately 8,000 feet above sea level. The Town is surrounded by lands administered by the Inyo National Forest, and the economy is primarily based on recreation and tourism, with a majority of the visitation coming during the winter ski season. There are a large number of cabins and condominiums in town that are occupied intermittently during the year. This results in high peaks and also poses a challenge in terms of adequately financing the operations of the utilities, and equitably recovering costs from permanent residents.

Raftelis was first selected in a competitive process to assist the Mammoth Community Water District (District) with its water and sewer rates in 2011. Raftelis was rehired in 2015 and 2020 to conduct a water and wastewater cost-of-service analysis and to develop new financial plan models for both the water and wastewater enterprises. In 2015 Raftelis revised the water rate structure to better reflect customer demand patterns and developed drought rates. Because the District has a transient population, drought rates were developed as a fixed charge by meter size. This ensures that each connection, irrespective of water use or absentee property owners paid their fair share of the revenue shortfall, and that the burden was not shouldered completely by full-time residents. In the 2020 study Raftelis revised the wastewater rate structure which no longer accurately reflected wastewater generated by individual customers and was unfair to customers and burdensome to District staff.

Raftelis met with the staff to identify their pricing objectives and priorities. Raftelis conducted several workshops with Board members in Ad Hoc Committee meetings and presentations to the full Board of Directors. The Raftelis financial plan and rate model was utilized to display dashboard results and to review alternatives and impacts to customers. Rates were successfully adopted in 2016 and are currently being noticed as part of Proposition 218 procedures for the 2020-21 Study. Raftelis has also successfully adopted new capacity fees for the District in June 2019.

Agenda Item #13.1.

RAFTELIS 10
Soquel Creek Water District CA
Reference: Leslie Strohm, Finance and Business Services Manager 5180 Soquel Drive, Soquel, CA 95073
P: 831.475.8501 ext 132 / E: [email protected] Total Hours: 545 hours
Date of Engagement: 2018-19
Partners: None
Final Report: Click here
Scope of Work: Soquel Creek Water District (District) provides potable water service to roughly 40,400 people through 15,800 connections in Santa Cruz County. The District relies solely on local groundwater to meet customer demand of approximately 3,100 acre feet per year.

In September 2017, the District contracted with Raftelis to conduct a Rate Structure Evaluation Study (Study) to assess the feasibility of a CustomerSelect style rate structure. Goals of the evaluation include examining an alternative rate structure that will balance conservation among customers and revenue stability for the agency. The Study objectives included evaluating various pricing and policy objectives related to a CustomerSelect rate structure and developing a framework for modelling and implementing a CustomerSelect rate structure for residential users. Raftelis produced a report which presented the Study work and resulting decisions and recommendations. The project includes numerous meetings with the District’s Board of Directors as well as the District’s Water Rates Advisory Committee (WRAC).

In 2018, Raftelis was contracted with the District to perform a cost-of-service and rate study to include development of tiered rates, CustomerSelect rates, and a long-term financial plan. Special considerations included financial sufficiency due to a long-term supplemental supply project; defensibility due to recent litigation and challenges to the District’s past rates; and affordability for low volume and median water users whose essential water use maintains the District within the sustainable yield of the groundwater basin.

Rates were successfully adopted in February 2019 and Raftelis is currently assisting the District in updating financing assumptions for its $140 million supplemental supply project.

Agenda Item #13.1.

RAFTELIS 11
Agenda Item #13.1.

RAFTELIS 12
Agenda Item #13.1.

RAFTELIS 13
Agenda Item #13.1.

RAFTELIS 14
Project Team

WE HAVE DEVELOPED A TEAM OF CONSULTANTS WHO SPECIALIZE

IN THE SPECIFIC ELEMENTS THAT WILL BE CRITICAL TO THE
SUCCESS OF THE CITY’S PROJECT.

Our team includes senior-level professionals to provide experienced project leadership with support from talented consultant staff. This close-knit group has frequently collaborated on similar successful projects, providing the City with confidence in our capabilities.

The quality of staff over the term of the agreement will be assured. Raftelis’ organizational structure is designed to allow members of our executive team to devote a significant amount of time to client consulting activities. The project manager has ultimate accountability for meeting the technical requirements of the project and for providing guidance on the strategic direction of the engagement. They are responsible for client communications, project management, and ensuring the project meets client needs in an efficient and effective manner. Raftelis assigns leads to the key tasks of the project who will work with the project manager to make sure resources are being used effectively. At the direction of the project manager, Raftelis assigns staff consultants who are responsible for conducting analysis and developing work products.

Our team will have the support of multiple staff consultants for this engagement, as necessary.

Here, we have included an organizational chart showing the structure of our project team. On the following pages, we have included resumes for each of our team members as well as a description of their role on the project, information on relevant continuing professional education, and relevant professional memberships.

PART 3 – CONSULTANT IDENTIFICATION AND TEAM

CITY OF
ST. HELENA

PROJECT DIRECTOR
Jim Armstrong

TECHNICAL REVIEWER
Sudhir Pardiwala, PE

LEAD ANALYST
Jonathan Jordan

PROJECT MANAGER
Kevin Kostiuk

STAFF CONSULTANTS
Charles Diamond
Lindsay Roth

OUTREACH
Sam Villegas, APR
Matt Wittern, APR, PMP
Agenda Item #13.1.

RAFTELIS 15
Jim Armstrong

PROJECT DIRECTOR
Principal Consultant
ROLE
Jim will be responsible for overall project accountability and will be available to provide quality assurance and control, industry perspective, and insights into the project.

PROFILE
Prior to joining Raftelis, Jim had a long and successful local government career in four California cities. Most recently, he served as City Administrator of Santa Barbara from 2001 to 2014. During his tenure, he successfully led the City through the 2008-10 recession; completion of a General Plan update; two major wildland fires; and the dissolution of the City’s Redevelopment Agency.

He was instrumental in the creation of the City’s Neighborhood Improvement Task Force and the South Coast Task Force on Youth Gangs. Santa Barbara also implemented a comprehensive performance management program under Jim’s direction.

After leaving government service, Jim has provided consulting services for several California cities and special districts. His assignments have included management studies, executive recruitments, and development of long-term financial plans. He is known for his extensive knowledge of local government finance, budgeting, and financial analyses.

RELEVANT PROFESSIONAL EXPERIENCE
Ralph Andersen & Associates: Senior Consultant (2015-
2018)
Jim served as senior consultant conducting city manager and senior level executive recruitments and management studies for cities and special districts throughout California. Management studies included a high-level review of a city’s entire departmental operations; development of a cost-benefit model to determine the feasibility of creating a municipal police department; and evaluation of management systems at a community college district.

Santa Barbara (CA): City Administrator (2001-2014)
Served as City Administrator and Redevelopment Executive Director of this well-known city with 90,000 residents, 1,000 employees and an annual budget of $275 million. Accomplishments include:
• Leading the organization successfully through a major downsizing as a result of the 2008-10 recession with a minimum disruption of services • Successfully completing several important capital improvement projects including a new airline terminal, a major new downtown parking structure; important water and wastewater upgrades, and reconstruction of historic fire headquarters building
Specialties
• Municipal budget development &
financial management
• Organizational analysis
• Long term financial planning
• Establishment of performance
management systems
• Strategic planning
Professional History
• Raftelis: Principal (2019-present)
• Ralph Andersen & Associates: Senior
Consultant (2015-2018)
• Santa Barbara, California: City
Administrator (2001-2014)
• Fullerton, California: City Manager
(1992-2001)
• Anaheim, California: Assistant City
Manager (1990-1992); Assistant to the
City Manager (1979-1983);
Administrative Assistant (1978-1979);
Administrative Aide (1977-1978)
• Hanford, California: City Manager
(1983-1990)
Education
• Master of Public Administration -
California State University, Long Beach
• Bachelor of Arts in Psychology, Political
Science, Cum Laude - University of
California, Los Angeles
Professional Memberships
• Santa Barbara County City Managers
Association: Chair
• Orange County City Managers
Association: President
• South San Joaquin Valley City
Managers Association: President
• International City/County Management
Association: Life Member
• Santa Barbara Neighborhood Clinics:

President of the Board
• Channel Islands YMCA: Chair of the
Board, Treasurer
• Santa Barbara Rotary Foundation:

President
• Santa Barbara County United Way:

Board of Directors
• Aircraft Owners and Pilots Association
• Experimental Aircraft Association
• Liga International (Flying Doctors of
Mercy)
Agenda Item #13.1.

RAFTELIS 16
• Implementation of major organization efforts including a comprehensive performance management system, a modern communications strategy, and an award-winning sustainability program • Development of revised budgeting and financial management systems that stabilized city finances, improved accountability, and increased transparency
• Completion of a new General Plan
Fullerton (CA): City Manager (1992-2001)
Served as City Manager and Redevelopment Executive Director of a full-service city with 130,000 residents, 800 employees and an annual budget of $125 million. Accomplishments included:
• Restoration of downtown business area that received state and national recognition • Restructuring of city operations to deal with a major revenue shortfall, resulting in annual savings of $5 million • Implementation of improved management systems that enhanced customer service, productivity tracking, internal communications, and employee morale
• Implementation of long-term planning efforts including infrastructure financing strategies, a Transportation Center Master plan, and water system master plan
• Participation on regional planning efforts which resulted in restructuring of the county solid waste system and implementation of a county-wide public safety communications system Anaheim (CA): Assistant City Manager (1990-1992)
Served as Assistant City Manager of a large, diverse City with 300,000 residents, 2,000 employees and a budget exceeding $550 million. Duties included directly supervising eight departments, including Finance, Stadium, Convention Center, Parks and Recreation, and the Library. Accomplishments included:
• Serving on the city negotiating team to plan and implement the $1.5 billion expansion of Disneyland, improvement to the commercial recreation area, and a major expansion of the Anaheim Convention Center • Serving as a member of the negotiating team that successfully negotiated the development of the Anaheim Arena, a 20,000-seat multipurpose facility
Hanford (CA): City Manager (1983-1990)
Served as City Manager and Redevelopment Executive Director of this full-service city with a population of 30,000 and 180 employees. Major accomplishments included:
• Numerous state and national awards for downtown restoration efforts • Implementation of improved management systems to improve performance measurement, customer service, and budgeting
• Developed a solid waste joint powers authority in conjunction with the county and two other cities.

Anaheim (CA): Assistant to the City Manager (1979-1983) • Served in progressively responsible positions in the city manager’s office. Duties included working with city council members on specific policy issues, review of all council agenda items, supervision of the intergovernmental relations office and work on special projects.
• Managed public works maintenance functions for two years to create a new Department of Maintenance. Supervised five divisions of Public Works with a budget of $26 million and 400 employees • Chaired task force in negotiations with Hilton Hotels, which resulted in a 50-year lease to construct a 1600 room hotel on city owned land
• Developed computerized work management system and productivity tracking system for use by all city departments.

PROFESSIONAL HONORS
• Orange County Division of American Society of Public Administration Public Administrator of the Year • Channel Islands YMCA Distinguished Service Award
Agenda Item #13.1.

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Kevin Kostiuk

PROJECT MANAGER
Manager
ROLE
Kevin will manage the day-to-day aspects of the project ensuring it is within budget, on schedule, and effectively meets the City’s objectives. He will also lead the consulting staff in conducting analyses and preparing deliverables for the project. Kevin will serve as the City’s main point of contact for the project.

PROFILE
Kevin has a background in economics and accounting and possesses extensive analytical skills. His expertise lies in water resources management, environmental economics, environmental policy, and federal water supply and flood control policy. Kevin is a member of the American Water Works Association (AWWA) Young Professionals and the Young Professionals Summit Committees in conjunction with the AWWA Utility Management Conference (UMC). He has authored an article on potable reuse in Journal AWWA discussing the treatment, financing structures, and pricing of treated water at advanced purification treatment plants; an article on municipal water demand pattern changes during the recent State-wide drought; and an article on proactive financial planning in times of drought for California Society of Municipal Finance Officers (CSMFO) Magazine. Most recently Kevin presented at the AWWA UMC discussing a recent evaluation of the conceptual CustomerSelect rate model for Soquel Creek Water District.

KEY PROJECT EXPERIENCE
Crescenta Valley Water District (CA)
Kevin developed a combined water and sewer financial plan and rate model for the Crescenta Valley Water District (District) in 2016. The cost-of-service and rate study included several workshops with the District Board which culminated in structural changes to the District’s existing water and sewer rate structures. In addition to the tiered water rate structure, which was ultimately adopted, Kevin developed a water budget rate model for evaluation by District staff and the District Board.

Prior to the cost-of-service and rate study, Kevin performed an economic analysis for the District to determine the feasibility of offsetting imported water supply with the production of local groundwater. Kevin created a customized model for the District to use under different scenarios of capital requirements, lease options, and contract lengths. As part of the study, he reviewed the District’s prior consultant’s work, determined internal rate of returns, calculated the net present value of district savings, and determined the cost at which the District should lease water rights for groundwater production.

East Valley Water District (CA)
Raftelis contracted with East Valley Water District (District) in 2014 to develop budget-based rates to replace the District’s existing uniform rate structure. Kevin assisted the District with design and implementation of budget-based water rates for their 23,000 accounts including residential, commercial and irrigation customers. The study included Specialties
• Water & Drought rate design
• Water budget rate structures
• Utility cost-of-service
• Sustainable Groundwater
Management Act
• Data analysis
• Environmental policy analysis
Professional History
• Raftelis: Manager (2020-present);
Senior Consultant (2014-2019);
Consultant (2014-2015)
• Turner New Zealand, Inc.: Director
of Operations (2009-2012);
Accounting Manager (2007-2009)
• Lesley, Thomas, Schwarz &
Postma, Inc.: Staff Accountant
(2007)
Education
• Master of Environmental
Management - Duke University
(2014)
• Bachelor of Arts in BusinessEconomics & History - University of California, Santa Barbara (2006)
Agenda Item #13.1.

RAFTELIS 18
creation of a long-term financial plan and full cost-of-service study for the water enterprise. Kevin developed the 10-year financial plan model, rate model, and water budget model for the District.

Kevin worked closely with the District’s finance, IT, and, billing departments in the early stages to analyze customer account level data including monthly use. He also worked with the District’s GIS and other outside consultants to develop the water budget model using irrigable landscape area, customer class, assessor parcel number (APN), etc. for construction of indoor and outdoor allocations, or budgets.

The project incorporated significant public outreach whereby Raftelis led meetings with ratepayers to receive input, provide study updates, and answer questions of the public. The ratepayer meetings assisted adoption of the new rate structure and implementation. The rate structure that the Board adopted allows for the most precise, scientific, and equitable design of rate structures, tailored specifically to an individual account.

Goleta Water District (CA)
Kevin completed a full water cost-of-service study for the Goleta Water District (District) which included design of inclining tiered rates for their single-family residential class, as well as agricultural rates for two classes. Complexities in customer classes’ access to District water supplies, interruptibility during times of drought, and benefit (or lack thereof) from treatment made the analysis unique and challenging. The study included development of a long-term financial plan model, rate model, and corresponding bill impacts.

To achieve the District’s demand reduction targets as outlined in their Drought Management Plan, the District wished to explore drought rates/drought surcharges to curb demand. Ultimately, Kevin developed three options of revenue neutral drought surcharges for the Board’s consideration. These various options ranged from targeted surcharges on an inter and intra-class basis, to a surcharge applied to non-drought commodity rates, to a uniform commodity surcharge irrespective of customer class or use. The proposed rates and drought surcharges were adopted and implemented July 1, 2015.

City of Redlands (CA)
Kevin updated prior financial plans developed by Raftelis for the City of Redlands (City) for their water and sewer enterprises. The update included building in more flexibility to the model for ease of use and for future updates, as well as making the model dashboards more user friendly.

The state-wide drought in California called for a mandatory 25% reduction for all water service agencies in the state. The City’s target was to reduce residential consumption by 35%. Kevin assisted the City in design and implementation of drought surcharges to achieve a 35% reduction and to recover lost revenue from reduced water sales.

Additional work for the City included updating the City’s Storm Drain Impact Fee and miscellaneous fee for National Pollutant Discharge Elimination System (NPDES) inspections as part of the MS4 permit requirement. The storm drain fee had not been reevaluated in 20 years. Additionally, the City had recently completed a Storm Drain Master Plan which called for $83 million in improvements to system deficiencies. Kevin developed a methodology to retain the existing impact fee structure while updating the fee paid by different land use classes.

In 2015 and 2016 Kevin developed a water budget rate model for the City to evaluate a new rate structure. The model integrated with the existing water financial plan model and designed parallel water budget rates for consideration by City staff and the Council.

City of Camarillo (CA)
Raftelis has provided rate consulting services to the City of Camarillo (City) for the past seven years with Kevin serving as lead analyst the past three years. In the current rate cycle Kevin serves as project manager. The City adopts rates on a Agenda Item #13.1.

RAFTELIS 19
two-year cycle and the most recent study included rebuilding long term financial plan models, revising the wastewater utility’s rate structure, and performing a cost-of-service analysis for the sewer utility. Kevin has made presentations to the City Manager, City’s Utility Committee, and City Council in consecutive years. Kevin successfully presented rates to City Council in December 2016, November 2017, and November 2018.

During the height of the most recent state-wide drought, the City contracted with Raftelis to evaluate emergency drought rates as a conservation and revenue recovery tool. Kevin adapted the existing financial plan model and developed multiple scenarios based upon the City’s water supply condition stages. Kevin developed drought rates utilizing the City’s financial plan at each stage and estimating water reductions. The rates were not adopted prior to the end of the state-wide drought however the drought tool is available for quick implementation should drought conditions return. Raftelis is currently contracted with the City for another two-year rate and capacity fee study for 2019 with Kevin as project manager.

City of Tustin (CA)
Raftelis contracted with the City of Tustin (City) to develop a 10-year financial plan and evaluate a budget-based rate structure for its customers. Kevin worked extensively with City staff, Raftelis’ data services team, and outside consultants of the City to develop the water budget allocation and rate model for the City’s approximately 14,000 customer accounts.

As part of the model build, data from GIS consultants had to be organized and validated for each of the City customers’ parcels. Raftelis’ data services team worked internally to ensure matches between assessor’s data and GIS data for integration to the water budget model. Rates and customer impacts have been presented to City staff and a public outreach campaign is being devised in anticipation of the council workshop. The project is ongoing.

Placer County Water Agency (CA)
In 2015 Placer County Water Agency (PCWA) contracted with Raftelis to evaluate its water system. PCWA provides retail and wholesale water service to treated water and raw water users throughout western Placer County. In Phase I of the project Kevin evaluated the current system’s four service zones and numerous service classes and customer classes.

Raftelis then provided recommendations to consolidate and simplify the water system organization and structure. In Phase II Raftelis performed a cost allocation study between the four proposed classes of service to identify the cost of providing service to these distinct users. Phase III consisted of performing cost-of-service analyses for PCWA’s four service classes and developing corresponding rates. The study was completed in October 2017 with new organization, rate structures, and associated rates implemented January 1, 2018.

Additional to the water system evaluation and cost-of-service study, Kevin developed a water budget model for PCWA’s internal use. The water budget model allows PCWA to examine their Single Family Residential (SFR) customer’s usage patterns relative to efficiency standards, climate, and account level characteristics. The model will aid in water management and give insight into water demand pattern changes with the Agency’s new rate structure and rates.

Mammoth Community Water District (CA)
Raftelis provided the Mammoth Community Water District (District) with a 10-year financial plan model for both the water and wastewater enterprises, as well as performing a cost-of-service analysis for the water enterprise. The district carries out operating and capital activities that are indirectly assigned to the two enterprises. Kevin worked with District staff to carry out a cost allocation study to distribute administrative costs appropriately. Raftelis recommended changes to the water rate structure as part of the study to simplify the rates and make them more legally defensible.

The study took place at the height of the statewide drought and as part of the project Kevin developed drought rates for the District to implement in times of mandatory conservation or water supply shortage. Being an agency with a large seasonal population Raftelis worked with staff to determine the most appropriate and effective means of charging the drought rates. Kevin designed drought rates for each stage of the District’s water conservation plan, effective on the Agenda Item #13.1.

RAFTELIS 20
meter-based fixed charge of a customer’s bill. This ensured that every connection in the water system shared in the burden caused by the drought, irrespective of water use. Raftelis also evaluated existing capacity fees for both enterprises. This task is ongoing. The water rates, wastewater rates, and drought rates were adopted and implemented January 2016.

In 2018 the District again contracted with Raftelis to conduct a wastewater cost-of-service and rate study as well as a capacity fee study for both utilities. Raftelis developed updated water and wastewater capacity fees which meet the District’s financial and policy objectives. Capacity fees are scheduled for adoption in Summer 2019. The cost-of-service study is ongoing.

Borrego Water District (CA)
Raftelis contracted with the Borrego Water District (District) to evaluate the impact of county growth projections as well as the Sustainable Groundwater Management Act (SGMA) of 2014. Kevin utilized the existing financial plan model, water supply analyses provided by other District consultants, and assumptions on land acquisitions to determine the effect of SGMA on long term water rates. The Borrego Groundwater Basin is critically over drafted, and users will need to decrease water production significantly to achieve sustainable yield by 2040. This will require the District to reduce per capita water use and acquire production credits within the basin by fallowing agricultural land. Kevin estimated water rates in each year through 2040 incorporating assumptions on groundwater production, market values of land in the basin, debt financing, and water source alternatives.

In 2017 Kevin examined the affordability of water rates charged to the District’s customers. The assessment analyzed both existing and future rates and affordability under the SGMA scenario identified in 2016. The affordability assessment relied upon the SGMA Impact Assessment and corresponding demand projections, basin yield assumptions, financing assumptions, and projected rates to the year 2040. The project allowed the District to understand affordability of existing rates and water allocation and to estimate the affordability impacts of SGMA compliance in the Borrego Groundwater Basin over the long term.

Borrego Valley Groundwater Sustainability Agency (CA)
Raftelis was contracted by the Borrego Valley Groundwater Sustainability Agency (Agency) to develop a financial planning model and fee options for the new entity as mandated by the Sustainable Groundwater Management Act (SGMA). Tasks included working with the core project team to develop policy options for fee structuring and various fee recovery mechanisms. Project deliverables included a financing plan memorandum, an Excel-based financial plan Model, operating and administrative budget creation, and a user manual for the Excel Model. The deliverables were used in the submission of the Groundwater Sustainability Plan (GSP) to the State Department of Water Resources (DWR) in 2019.

Soquel Creek Water District (CA)
The Soquel Creek Water District (District) contracted with Raftelis in 2017 to evaluate a novel rate structure for its ratepayers. Kevin participated in several workshops with the District’s citizen Water Rates Advisory Committee and Board of Directors to develop a policy framework for the rate structure and conduct pricing objectives exercises with both groups. Kevin developed a report for the District which informed the rate design in 2018.

In 2018 Raftelis contracted with the District for a long-term financing plan and rate study. Kevin served as the assistant project manager and oversaw the model creation for the financial plan, tiered rate model, and CustomerSelect rate model.

The District adopted our recommended three years of rates in February 2019.

Summerland Sanitary District (CA)
Raftelis contracted with the Summerland Sanitary District (District) in 2016 to perform a cost-of-service and rate study for wastewater services. The study included a 10-year financial plan model, cost-of-service analysis, and review of the existing equivalency definitions for the District’s user classes. Additional work included adoption of a formal financial Agenda Item #13.1.

RAFTELIS 21
reserves policy to ensure long term fiscal health as well as updates and additions to the District’s miscellaneous fee schedule. Kevin served as project manager and lead analyst for the project and held several meetings with District staff, the Finance Committee, and the Board of Directors. Five years of rates were adopted in December 2017.

Monterey County Water Resources Agency - New Source Water Evaluation (CA) In 2017, Kevin performed a cost analysis and evaluation of new source waters from recycled water for its coastal agricultural users. Recycled water production from the several sources will require new infrastructure, treatment, and maintenance. Kevin built an electronic model which incorporated different climate scenarios, costs of capital, operating, maintenance, and treatment, and the water available from all sources under different weather conditions and water rights.

The project is ongoing with a series of meetings with the Agency’s agricultural customers, County Board of Supervisors, and stakeholder agencies.

City of Buenaventura (Ventura)
Raftelis developed long-range financial plans so that the water and wastewater utilities could be financially stable and save costs in the long run. Raftelis also assisted the City of Buenaventura (City) with developing different water and wastewater rate alternatives with various scenarios based upon estimated water sales and capital improvement plan (CIP) funding. The study is being conducted with several meetings and input from stakeholders comprised of customers within the City. Raftelis educates the Water Commission on the basics of rates, cost allocations, and rate design to obtain their buy-in using the dashboards in the rate models that were developed. This allows us to demonstrate the impacts of various revenue adjustments on the long-term financial stability of the enterprises. As of May 2019, the studies are ongoing.

City of Riverside (CA)
Kevin completed a study for the City of Riverside (City) to determine the value of an elevation fee credit for present and future customers in a special district. The project required calculation of asset replacement values for infrastructure serving the special district, specific to booster capacity, and within the context of a historical assessment. The findings from the study were used to defend the City’s move to assess its elevation fee schedule.

City of Simi Valley (CA)
The City of Simi Valley (City) had last raised sewer rates in fiscal year 2008-2009 and was facing a backlog of sewer system improvements and repair and replacement. Kevin updated the existing sewer financial plan with recent data, as well as updated the cost-of-service analysis. As part of the study, tier definitions were changed for non-residential customers to reduce the base charge on small users without impacting revenue recovery. Working with City staff, and with presentations to City management, Raftelis assisted in getting Council authorization for proposition 218 notices of a rate increase to the City’s customers. The revenue increases will allow the City to commence the public works department’s capital improvement schedule while maintaining reserve funds at target levels.

City of Henderson (NV)
Kevin created water and wastewater rate and financial planning models for the City of Henderson (City) as well as updated their water and sewer system development charges. The project created a combined model for the water and sewer enterprises which incorporated finance department reporting tools. The combined model allows the utility (water and sewer) to be viewed as a one, with impacts and reporting available to the user. The models will be used over the next 10 years to calculate water and wastewater rates as well as to create annual financial statements.

City of Corona (CA)
Kevin assisted the City of Corona (City) in updating its financial plans for the water and reclaimed water enterprises. The study included performing cost-of-service analyses for both utilities and updating the water budget rate structure. In addition, Kevin developed a framework and corresponding rates for contract reclaimed water customers.

Agenda Item #13.1.

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City of Raleigh Public Utilities Department- American Rivers (NC) Kevin served as project leader for a study of alternatives to meet Raleigh’s long term water supply shortfall. The project examined four options in extending the life of the existing federal reservoir, thereby postponing capital expenditures on a new raw water supply. Results were delivered to city staff, their consultants and the United States Army Corps of Engineers.

Lower Cape Fear Water Quality Trading Program - The Nature Conservancy (NC) To reduce nutrient loading and decrease utility costs, The Nature Conservancy proposed a Water Fund to improve water quality through improved agricultural practices on private landholdings in the watershed. Kevin was in charge of researching comparable programs and providing options for a financial mechanism and governance approach between various stakeholders in the region including utilities, agriculture, environmental organizations and community groups.

City of San Jose (CA)
Raftelis contracted with the City in 2016 to perform a cost-of-service and rate study for the City’s water enterprise. The study included creation of a 10-year financial plan model, cost-of-service analysis, and redesign of the City’s water rate structures. Kevin as lead analyst developed the financial plan model and worked closely with City staff to incorporate the City’s budgetary information as part of the planning exercise. Additionally, Kevin worked with the City’s water resources manager and water system engineer to identify future supply and demand in each of the City’s different service areas, with differentiated water rates for each area. At the conclusion of the study Kevin held a session to train staff on use of the electronic financial plan model. The project was completed in 2017.

Santa Cruz Mid-County Groundwater Agency (CA)
Raftelis was contracted by the Agency to evaluate funding criteria for Santa Cruz Mid-County Groundwater Sustainability Agency (GSA) fees and calculate preliminary fees. Kevin served as the project manager. Raftelis conducted multiple meetings and webinars with County staff and the Advisory Committee to produce a financial budget for management activities, discuss fee structure options, and develop a pricing objectives exercise for the GSA Board. The project culminated with fee analysis and production of a White Paper to assist the Agency in navigating their financing plan as part of the GSP submittal process, as well as recovering costs of management over the long term. The project is complete as of May 2019.

PROJECT LIST
• Antelope Valley (CA) - East Kern Water Agency
• Citrus Heights Water District (CA) - Groundwater supply analysis • Coastside County Water District (CA) - Water rate study • Elsinore Valley Municipal Water District (CA) - Drought surcharge study • La Canada Irrigation District (CA) - Water cost-of-service and rate study • City of Lancaster (CA) - Wastewater cost-of-service study • Madera County Groundwater Sustainability Agencies (CA) • Montecito Basin Groundwater Sustainability Agency (CA) • City of Torrance (CA) - Wastewater cost-of-service and rate study • Triunfo Sanitation District (CA) - Water rate study
• Ventura County Waterworks District No. 8 Simi Valley (CA) Agenda Item #13.1.

RAFTELIS 23
Sudhir Pardiwala PE

TECHNICAL REVIEWER
Executive Vice President
ROLE
Sudhir will provide oversight for the project ensuring it meets both Raftelis and industry standards.

PROFILE
Sudhir has 40 years of experience in financial studies and engineering. He has extensive expertise in water and wastewater utility financial and revenue planning, valuation, and assessment engineering. He has conducted numerous water, wastewater, stormwater, and reclaimed water rate studies involving conservation, drought management, risk analysis, as well as system development fee studies, and has developed computerized models for these financial evaluations. Sudhir has assisted public agencies in reviewing and obtaining alternate sources of funding for capital improvements, including low-interest state and federal loans and grants. He has assisted several utilities with State Revolving Fund and Water Reclamation Bond loans. Sudhir authored the chapter on reclaimed water rates in the Manual of Practice No. 27, Financing and Charges for Wastewater Systems, published by the Water Environment Federation (WEF). He also authored a chapter entitled, “Recycled Water Rates,” for the Fourth Edition of the industry guidebook, Water and Wastewater Finance and Pricing: The Changing Landscape. Sudhir was vice-chairman of the California-Nevada AWWA Business Management Division and Chairman of the Financial Management Committee.

KEY PROJECT EXPERIENCE
City of Vallejo (CA)
The City of Vallejo (City) engaged Raftelis to develop a financial plan for the water utility to ensure that the City would not be in technical default of its bond covenants after another consultant had completed a rate study. In short order, Raftelis prepared a Financial Plan to help the City tide over the immediate crisis and assisted with developing a Proposition 218 notice and with mailing it to over 42,000 customers and properties. Subsequently, the City again engaged Raftelis in a competitive proposal process to conduct a cost-of-service and rate study. The City has multiple service areas, and a financial plan and rates were determined for each area. Raftelis redefined the tiers based on the water usage patterns in the City single family class and developed uniform rates by customer class for multifamily, non-residential, raw water and construction classes. Raftelis made several presentations to a Utility Advisory Committee and supported staff in workshops with City Council. The City Council accepted our report and Raftelis assisted in drafting the Proposition 218 notice and mailing it. Raftelis also calculated rates for contract customers American Canyon and Travis Air Force Base schools.

Specialties
• Cost-of-service rate studies
• Conservation & drought
management studies
• Economic analyses
• Water & wastewater utility cost
accounting
• Valuation
• Financial & revenue planning
• Assessment engineering
• Reviewing/obtaining capital
improvement funding
• Computer modeling
Professional History
• Raftelis: Executive Vice President
(2013-present); Vice President
(2004-2013)
• Black & Veatch: Principal Consultant
• (1997-2004)
• MWH: Principal Engineer (1985-
1997)
• CF Braun: Senior Engineer (1979-
1985)
• PFR Engineering Systems:

Research Engineer (1977-1979)
Education
• Master of Business Administration -
University of California, Los Angeles
(1982)
• Master of Science in Chemical
Engineering - Arizona State
University (1976)
• Bachelor of Science in Chemical
Engineering - Indian Institute of
Technology, Bombay (1974)
Certifications
• Series 50 Municipal Advisor
Representative
• professional registrations
• Registered Professional Engineer,
California: Civil (1988); Chemical
(1981)
Professional Memberships
• AWWA
• WEF
• California Municipal Finance
Officers Association
Agenda Item #13.1.

RAFTELIS 24
City of Brentwood (CA)
Sudhir served as project manager for a water and wastewater rate study for the City of Brentwood (City) that involved a comprehensive review of the City’s financial plan and rate structure. The City has a total of over 17,500 water and wastewater accounts. Water is supplied through two main sources: local groundwater, from the City’s groundwater wells, and surface water that originates from rivers within the Sierra Mountain range and flow into the Delta. Surface water is treated at the City of Brentwood Water Treatment Plant (Brentwood TP) and the Randall Bold Water Treatment Plant (RBWTP). Wastewater services are provided by the City’s Wastewater Treatment Plant with a capacity to treat 5.0 million gallons of wastewater per day (MGD). The study included a comprehensive review of the City’s revenue requirements and allocation methodology, a review of City’s user classification, a cost-of-service analysis, and rate design for City users. The resulting rates were fair and equitable and met the fiscal needs of the City’s utilities in the context of the City’s overall policy objectives and were designed for simplicity of administration, cost effective implementation and ease of communication to customers. The study also included drought surcharges that vary based on the water shortage level that the City can implement as necessary to recover the revenue shortfall that occurs as a result of demand reduction during water shortage situations. Raftelis developed a user-friendly model so that various scenarios could be evaluated on the fly. The City appreciated the flexibility of using this model during the course of the study. Raftelis calculated wastewater rates based on flow and strength for different classes of customers. Raftelis assisted with the Proposition 218 notice and the public hearing. Raftelis has been retained for two rate cycles for the City.

City of Ontario (CA)
Sudhir served as project manager on multiple water, wastewater, and solid waste rate studies. The study included a comprehensive review of the City of Ontario’s (City) revenue requirements and allocation methodology, review of user classifications, a cost-of-service analysis, and rate design for City users.

Raftelis designed tiered water rates, recycled rates and wastewater rates considering Inland Empire Utilities Agency (IEUA) rates. Solid waste rates were designed to recover costs. Raftelis provided the City with a model that is used for planning purposes by the City. The City has engaged Raftelis multiple times to update these rates, optimize water sources to minimize costs.

City of Redlands (CA)
Sudhir has managed several financial projects for the City of Redlands (City) including water, wastewater, and reclaimed water projects. The studies were conducted with extensive stakeholder input and multiple meetings with a Utilities Advisory Commission composed of local residents, businesses, and other interested parties. The first-rate studies involved significant rate adjustments as well as rate structure adjustments to ensure financial stability, meet debt coverage and regulatory requirements. The analysis included calculation of outside-City charges and impact fees. The City received user-friendly working rate models for future updates. Sudhir assisted the City with State Revolving Fund loans for reclaimed water and potable water. He helped them find grants for the reclaimed water project and water treatment plant upgrade. He has been assisting the City biennially with their water, wastewater and recycled water rates.

City of Palo Alto (CA)
Sudhir was project manager for a study for the City of Palo Alto (City) to determine the cost-of-service rates consistent with Proposition 218. The study involved review of fire service charges, booster pumping rates, strict adherence to cost-ofservice principles. The study was conducted with the participation of a citizens’ advisory committee. Raftelis developed a user-friendly rate model and provided City staff training on use of the model. The proposed rates were implemented July 1, 2012. Raftelis assisted The City with an update developing conservation rates with the State mandated reductions in usage.

Agenda Item #13.1.

RAFTELIS 25
City of Santa Barbara (CA)
Sudhir has been assisting the City of Santa Barbara (City) with their water, wastewater, and recycled water financial plans and cost-of-service rates studies involving rates for different customer classes including agriculture, outside City, tiered residential, commercial etc. Wastewater rates were developed for various funding sources including grants and SRF loans. The City is facing severe water supply shortages and water rates included evaluation of multiple drought stages, the rates and impacts on customers as well as funding desalination to provide adequate supplies for the City’s customers.

Raftelis also evaluated system capacity fees for new water and wastewater customers.

Olivenhain Municipal Water District (CA)
Sudhir assisted the Olivenhain Municipal Water District (District) in conducting a water financial plan study and a recycled water rate study to determine the recycled water rates charged to customers. The water financial planning model was developed to assist the District in evaluating different financing alternatives to minimize rate impacts and ensure financial stability. The water model was effectively used in Board meetings and presentations to evaluate the impacts of various scenarios. Additionally, Raftelis calculated drought/conservation rates for different stages of cutbacks. The recycled water rate study was conducted to determine the recycled water rates charged to customers given that the District obtains recycled water from four different sources: the City of San Diego, Vallecitos Water District, Rancho Santa Fe Community Services District, and the 4S Regional Recycled Water System. The existing agreements defined the costs of different sources of recycled water to the District. To address all of those issues and concerns, Raftelis developed a recycled water financial and rate model to determine the costs of providing service and the required revenue to be collected from customers. In addition, the model is built to evaluate when the District is able to take over the 4S Regional Recycled Water System, as stated in the agreement with the developer.

City of Sacramento (CA)
Sudhir managed a wastewater rate study to examine the charges associated with different types of residential and nonresidential customers. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, review of City’s user classification, a cost-of-service analysis, and rate design for City users. Sacramento is one of the few large Cities in the State that does not meter residential and a significant number of non-residential customers. The strength and flow allocation to these customers was revised. The resultant rates were fair and equitable and met the fiscal needs of the City’s wastewater utility in the context of the City’s overall policy objectives and were designed for simplicity of administration, cost effective implementation and ease of communication to customers.

City of San Diego (CA)
Sudhir conducted numerous studies for the City of San Diego (City), including a water, wastewater, and reclaimed water rate study. The entire wastewater rate study was conducted with extensive stakeholder group involvement because of the changes required in the wastewater rate structure to meet regulatory requirements. In addition, Sudhir served as project manager for the City’s reclaimed water rate study, impact fee studies for both water and wastewater, and a transportation charges study for agencies contributing to the City’s regional wastewater facility. Sudhir also managed a water demand study which involved statistical analysis of historical water consumption to model projections based on weather, economic activity, population, inflation, etc. Sudhir evaluated the feasibility of a water budget rate structure for the City.

He assisted the City with the Proposition 218 noticing and public outreach.

City of Beverly Hills (CA)
Sudhir served as project manager for Raftelis’ engagement with the City of Beverly Hills (City) water and wastewater rate studies. Raftelis was engaged by the City to develop a rate and financial planning model that would be used to evaluate alternative rate structures and to provide more detailed forecasts to assist in the preparation of updating rates in future years. Raftelis modeled numerous alternative rate structures and reviewed customer and revenue impacts before recommending that the City modify its current three tiered rate structure to include a fourth tier that targets large Agenda Item #13.1.

RAFTELIS 26
irrigation usage. In addition, Raftelis recommended that the costs of service be based on flow and strength. Raftelis continues to provide biennial updates to the City model so that rates may be projected in future years.

City of Ventura (CA)
Sudhir served as project manager for a water, wastewater, and recycled water cost-of-service and rate study for the City of Ventura (City). The City had not updated its rate structure in 20 years. Additionally, the City was under a cease and desist order that required the City to carry out improvements estimated at more than $55 million, and which the City wanted to start funding to mitigate impacts. The goal of the study was to develop conservation-oriented rates consistent with cost-of-service to recover adequate revenues to pay for necessary capital improvements, meet debt service coverage requirements, as well as maintaining sufficient reserve requirements. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, review of the City’s user classification, usage patterns, a cost-ofservice analysis, and rate design for City users. Raftelis developed long-range financial plans so that the water and wastewater utilities could be financially stable and save costs in the long run. We also assisted the City with developing different water and wastewater rate alternatives with various scenarios as well as calculating outside-city rates. The study was conducted with several meetings and input from stakeholders comprised of customers within the City. Raftelis educated the Citizen Advisory Committee on the basics of rates, cost allocations, and rate design to obtain their buy-in through the use of the dashboards in the rate models we developed for them to demonstrate the impacts of various revenue adjustments on the long-term financial stability of the enterprises. Raftelis also developed a schedule for funding a major wastewater program required by environmental groups. Recommended rates were implemented for two years in July 2012. Raftelis updated rates for the City in 2014 and provided water drought rates.

Goleta West Sanitary District (CA)
Sudhir has been Goleta West Sanitary District’s (District) financial consultant for over more than 15 years. During that time, he has assisted the District with financial planning, development and financing their replacement and refurbishment program, developing a rate structure, annexation fees, connection fees, miscellaneous fees, reserves policy development, and other financial issues. The District charges customers on the tax roll. Raftelis developed the data to be included on the tax roll and the District now manages it.

Clark County Water Reclamation District (NV)
Sudhir was project manager for a cost-of-service study for the Clark County Water Reclamation District (District) to help evaluate the current system of rates and charges to ensure that users were being charged appropriately. The District has not updated its rate structure system for many years and the current system based on fixture units is believed to need restructuring. Raftelis managed the sampling and wastewater flow monitoring from different types of users to determine the definition of an equivalent dwelling unit and the flows from different types of users. There are multiple outreach meetings with member agencies and interested stakeholders to educate them on the process and to obtain buy-in.

Vallejo Flood and Wastewater District (CA)
Raftelis assisted the Vallejo Flood and Wastewater District (District) with a comprehensive wastewater rate and connection fee study (Study). The District is an independent special district that collects, treats, and disposes of wastewater for 38,000 accounts in the City of Vallejo with a service area that covers 36 square miles and includes one wastewater treatment plant and 36 wastewater pump stations. The existing sewer rate structure comprised of flat rates for all residential customers, including single and multi-family residences. For commercial customers, rates were based on both flow and sewage strength. The District was moving over to a service charge to be levied on the property tax roll.

Raftelis was called in to assist with this study after another consultant’s study was found to be unacceptable to the District. As part of the study, Raftelis thoroughly examined the District’s revenue streams, cost structure, analyzed customer data, and developed an equitable rate structure that met both Proposition 218 requirements and the District’s goals and objectives. An important part of the study was the evaluation of the commercial customer classifications to ensure that customers were accurately categorized by strength and assessed the appropriate rates. Raftelis also created a Agenda Item #13.1.

RAFTELIS 27
user-friendly model so that various scenarios could be evaluated on the fly. Additionally, Raftelis also reviewed and updated the District’s connection fees. Upon completion of the rates calculation, Raftelis assisted the District in a comprehensive public outreach campaign to obtain customers buy-in, which was crucial in the successful implementation of the proposed rates for fiscal year 2019.

City and County of San Francisco (CA)
The City and County of San Francisco (City) conducts water, wastewater, and stormwater studies every five years to ensure that charges are consistent with cost-of-service and conforms with the City’s Propositions. Sudhir served as project manager for two cycles of rate studies for the City. The City has a combined wastewater and stormwater system and costs for stormwater are integrated with wastewater. The City was engaging in a multi-billion dollar capital improvement program that would have significant impact on rates. The City has unique microclimates and Raftelis analyzed the water usage characteristics of single family and multi-family users to develop a rate structure that would provide incentives for conservation. Raftelis evaluated incentives to encourage low impact development, reviewed stormwater practices to provide credits for best management practices to reduce stormwater generation. Raftelis performed an overhead cost allocation study consistent with federal requirements of OMB Circular A-87 to assign costs appropriately to different departments in order to obtain federal reimbursement for projects that are eligible for federal assistance.

Napa Sanitation District (CA)
Sudhir was project manager for a recycled water rate study for the District. The District was required to restrict summer discharge of its wastewater into the river. The District had made improvements to its treatment plant to produce recycled water and provided incentives to recycled water customers to use the water. Agreement with customers were to end within a couple of years and the District wanted to enlarge the recycled water facilities and enroll new customers into the recycled water program. The District wanted to review the economics of the improvements and determine the impacts resulting from implementing new recycled water rates. Raftelis developed a financial and rate model that considered the new customers and revised rates and the impact of providing discounted rates on wastewater customers. The District held meeting with the recycled water users and obtained input on issues of concern to them. Raftelis provided support to the District and evaluated the results of the surveys conducted to define the rates.

City of Henderson (NV)
Sudhir served as project manager for the engagement with the City of Henderson (City). In Phase I, Raftelis assisted the City in conducting a water and wastewater financial assessment. Raftelis developed a financial vision which will ultimately shape the utilities for the next 10 years. As part of our conceptual design process, Raftelis recommended several alternative rate philosophies to be evaluated as part of Phase II. The Model was also developed to evaluate certain rate philosophies and user charge structure modifications focused on improving the equitable recovery of costs from different user classes, legal defensibility of the rates and system development charges, revenue predictability, and conservation incentives. Raftelis developed an allocation or budget for different meter sizes to ensure that the tiered rates set up would fairly collect revenues from customers. Raftelis updated the City’s financial plan by participating in the City’s rate implementation process. This included presentations of final findings and recommendations to City Council and the Citizen’s Advisory Committee.

City of North Las Vegas (NV)
Sudhir was the project manager for the water and sewer financial planning and rate study conducted for the City of North Las Vegas (City). At the time, the City had experienced rapid growth and had a significant amount of capital projects including construction of their own treatment plant. The City faced many financial challenges at a time when there were signs of a slowing economy. Raftelis conducted a multi-year financial plan that examined various customer growth, capital funding, and rate revenue assumptions. Raftelis prepared rate models for both water and wastewater and trained City staff on their use. The models provided dashboards for ease of use and decision making.

Agenda Item #13.1.

RAFTELIS 28
City of Portland (OR)
The City of Portland (City) wanted a financial planning and rate model to determine rates for its wholesale and retail customers. Sudhir served as project manager for this study. The City provided wholesale water to 19 agencies under an old agreement that was expiring soon. The City was finalizing long-term agreements with explicit terms on rate setting.

The City wanted to develop rates consistent with the new agreement for the wholesale agencies, review rate structure alternatives for its retail customers, review impacts and provide flexibility for planning for the next 20 years.

The City’s existing retail rate structure consisted of an increasing 3-tier rate structure for all customers with fixed tiers for single family customers and tiers based on the average usage in the preceding 12-month period for the remaining customers. The current retail rates applied to all classes and did not take into account peaking, where factors can vary significantly from class to class. Raftelis developed alternative rate structure options for retail customers and explore the creation of more classes to increase equity and fairness and encourage conservation. Alternative rate structures included uniform volume rates, seasonal rates, increasing and “V” or “U” shaped block rates, and a range of individualized block rates with cutoffs based on average account usage, seasonal usage, or customer characteristics. Raftelis provided the City with the computer model and provided training and a manual in the user of the model.

In 2012, Sudhir managed a bond feasibility study for the City’s Bureau of Environmental Services. The City needed to issue bonds for several hundred million dollars to meet regulatory requirements related to its wastewater and stormwater systems. Raftelis met with City staff and reviewed the CIP, business processes, rates and rate setting procedures, and provided a certificate of parity showing that the City could meet its coverage requirements under the current rates so that the City could sell bonds with a good rating.

City of Tacoma (WA)
Sudhir was project manager for a study to develop financial plans and rate models for the City of Tacoma’s (City) Environmental Services including wastewater, surface water and solid waste utilities. The study involved development of user friendly financial and rate planning models that would allow the City to update rates on an annual basis, quickly make changes, and review rates. The model also provided capability to compare the status of the CIP, and actual revenues and expenses against budgets on a month-by-month basis. To make this process easy, the model was integrated with the City’s SAP and E Builder system. The financial plan and rates were reviewed with input from the City’s Environmental Services Commission. Raftelis turned over the models to the City, provided training and computer manuals in the use of the models.

Sudhir also provided financial planning models to the City’s water utility, which included user-friendly features and benchmarking tools to maximize improvements in operations and management.

City of Los Angeles (CA)
Sudhir was project manager on studies to develop rates and rate models for solid waste and wastewater utilities. The City of Los Angeles (City) wanted to have a planning tool in-house to evaluate what if scenarios, impacts and determine rates for various customers. The model incorporated many user-friendly features to assist the City update rates and prepare financial plans on an annual basis. Solid waste rates included non-residential customers based on size of containers and frequency of collection. Wastewater rates to the 27 subscribing agencies discharging to the City’s wastewater treatment facilities were also determined. This involved complex calculations and allocations to wastewater loadings, conveyance distance, etc. Connection or impact fees were also included in the model. User training, model documentation, regular updates and ongoing service were also included in this project.

Sudhir also served as project manager on a wheeling charges study for the Los Angeles Department of Water and Power.

The City was interested in determining the appropriate charges to be levied on various customers that may wish to use the extra capacity in the City’s system from the Los Angeles Aqueduct to the distribution network-to transfer water.

Agenda Item #13.1.

RAFTELIS 29
City of Pasadena (CA)
Sudhir was project manager for a study for the City of Pasadena (City) to determine roll-out charges for solid waste services provided by the City. Certain customers in the City needed assistance with rolling out their containers and replacing them again. Sudhir analyzed the costs associated with this service and set up a charge for it.

PROJECT LIST
• City of Anaheim (CA) - Water rate study
• City of Atwater (CA) - Water and wastewater rate study • City of Banning (CA) - Recycled water revenue program • Beaumont Cherry Valley Water District (CA) - Water rate and connection fee study • Carpinteria Sanitary District - Wastewater rate study • Casitas Municipal Water District - Water rate study
• Castroville Water District (CA) - Water and wastewater rate study • City of Beverly Hills (CA) - Asset replacement study, connection fee study, conservation rate study, valuation and development of replacement program and asset inventory, and water rate study and update • City of Brea (CA) - Water rate study, connection fees and related fees and charges study • City of Brentwood (CA) - Water and wastewater rate study • City of Buenaventura (CA) - Water and wastewater rate study • City of Burbank (CA) - Bond feasibility study, reclaimed water study, and water and wastewater rate study • City of Carlsbad (CA) - Asset replacement study and water, wastewater and reclaimed water revenue program • City of Chino (CA) - Valuation study and water rate study • City of Chowchilla (CA) - Water and wastewater rates study • Clark County Water Reclamation District (NV) - Cost-of-service study • City of Cloverdale (CA) - Water and wastewater connection fees and rate study • City of Corona (CA) - Water and wastewater rate study • El Toro Water District (CA) - Water budget and wastewater rate studies and connection fees • City of Encinitas (CA) - Water and wastewater rate study • City of Escondido (CA) - Valuation study, water and wastewater rate study • City of Glendora (CA) - Water and wastewater financial planning and rate study • Goleta Water District (CA) - Water and wastewater rates and connection fees studies, asset management, and financing plan
• City of Henderson (NV) - Water and wastewater rate study • La Canada Irrigation District - Water rate study
• La Crescenta Water District - Water and wastewater rate study • City of Livingston (CA) - Water, wastewater and solid waste rates study and litigation support • City of Los Angeles (CA) - Wheeling charge review
• Los Angeles Department of Water and Power (CA) - Water rate study and wheeling charge review • City of Madera (CA) - Water and wastewater rate study • Mammoth Community Water District (CA) - Water and wastewater rate study • Metropolitan Wastewater Joint Powers Authority (CA) - Wastewater valuation study and capacity valuation study • Napa Valley Sanitation District (CA) - State revolving fund loan assistance • City of North Las Vegas (NV) - Water and wastewater rates study and model • Ojai Valley Sanitary District - Wastewater rate study • Olivenhain Municipal Water District (CA) - Water and wastewater financial planning studies and recycled water rate study
• City of Ontario (CA) - Water, wastewater and solid waste rate study • Palmdale Water District (CA) - Water budget rate study • City of Palo Alto (CA) - Water rate study
• Portland Water Bureau (OR) - Retail and wholesale water rates model Agenda Item #13.1.

RAFTELIS 30
• City of Poway (CA) - Wastewater rate structure analysis • Ramona Municipal Water District (CA) - Water rate study • Rainbow Municipal Water District (CA) - Water, wastewater rate and capacity fee studies • City of Redlands (CA) - Impact fee study, non-potable water fee study, rocky mwc, valuation and lease study, biannual rate updates, reclaimed water funding, and water and wastewater rate study • City of Rialto (CA) - SRF funding and water and wastewater rate study • County of San Bernardino (CA) - Water and wastewater rate study and connection fees • City of San Diego (CA) - Recycled water rate study, valuation study, and water and wastewater financial plan, rate and connection fees study, litigation support
• San Diego County Water Authority (CA) - Capacity valuation, rate analysis, valuation study, and wheeling charge study
• City of San Fernando (CA) - Water and wastewater rates study • City of San Francisco (CA) - Water, wastewater rate study and stormwater incentives for low impact development • San Gorgonio Pass Water Agency (CA) - Financing plan
• City of San Jose (CA) - Sewer service related fees and charges • City of San Luis Obispo (CA) - Stormwater financial feasibility study • City of Santa Barbara (CA) - Water and wastewater rate study • City of Santa Fe springs - Water rate study
• Santa Fe Irrigation District (CA) - Wastewater treatment plant cost evaluation, water connection fees study, and water rate study and update
• City of Santa Monica (CA) - Wastewater rate study
• City of Scottsdale (AZ) - Impact fee study
• City of South Pasadena (CA) - Water and wastewater rate study • City of Springfield (OR) - Wastewater rates model
• Sweetwater Authority (CA) - Water rate study
• Tacoma Public Utilities (WA) - 2008 Business planning assistance and financial model • City of Upland (CA) - Valuation study
• City of Vallejo (CA) - Water financial plan
• Valley County Water District (CA) - Water rate study
• Town of Windsor (CA) - Impact fee review, state revolving fund loan application assistance, water and wastewater connection fees and rates study, and water and water reclamation rate studies Agenda Item #13.1.

RAFTELIS 31
Jonathan Jordan PGp (CA)

LEAD ANALYST
Consultant
ROLE
Jonathan will serve as the Lead Analyst and will work at the direction of Kevin in conducting analyses and preparing deliverables for the project.

PROFILE
Jonathan has focused on financial plan model development and rate design studies for California water, wastewater, recycled water, and wholesale agencies.

Jonathan is a California licensed Professional Geophysicist (PGp) with a background in GIS analysis and remote sensing. He has been involved in the survey design, data analysis, and reporting for large capital projects in the engineering, environmental, and geotechnical fields.

KEY PROJECT EXPERIENCE
Camarillo / Camarillo Sanitary District (CA)
Raftelis is performing water, wastewater, and recycled water rate study for the City of Camarillo/Camarillo Sanitary District. Jonathan is lead analyst developing the rates and financial plan. Jonathan assisted the City during the 2020 studies y to update the financial plans for the water and sanitation enterprises.

City of Encinitas (San Dieguito Water District, CA)
Jonathan was the lead analyst for the City of Encinitas (City) to establish water rates based on cost-of-service principles. Jonathan worked with City staff and the Board rate-setting committee to evaluate rates and explain rate-setting basics to the committee.

City of St. Helena (CA)
Jonathan assisted the City of St. Helena in developing a drought penalty allocation model. The project's goal was to evaluate the customer class and customer water allocation during a water shortage emergency declaration. Jonathan worked in tandem with City staff and the data services team to ensure the generated customer bills corrected billed the drought penalties for any water use over-allocation and ensure each customer received a correct allocation during the water use restrictions.

Alameda County Water District (CA)
Jonathan provided financial review and a cost-of-service rate update consulting experience to Alameda County Water District (District) since 2020. Jonathan served as the lead analyst for the 2020 Water Cost of Service and Rate Update study, including an update of fire rates, development of drought rates, and public outreach to stakeholders. During these projects, Jonathan has participated in the preparation of deliverables and Board presentation of workshops with the Executive Management and the Board of Directors in evaluating and identifying which financial/rate solutions meet their objectives.

Specialties
• Utility rate analysis
• Geospatial Data Analysis
• Data Visualization
Professional History
• Raftelis: Consultant (2022-present);
Associate Consultant (2020-2021)
• GEOVision Geophysical Services:

Project Geophysicist (2015-2020)
• Signal Hill Petroleum, Inc.: Intern
Data Analyst (2013)
Education
• Master of Science in Geological
Sciences/Geophysics -California
State University at Long Beach
(2019)
• Bachelor of Science in Geophysics
– University of California at
Riverside (2012)
Professional Memberships
• AGU
• AEG
• EEGS (Former)
• AAPG (Former)
Agenda Item #13.1.

RAFTELIS 32
California Domestic Water Company (CA)
Jonathan assisted California Domestic Water Company in conducting a Wholesale Water Financial Study and Rate Update. The project included developing a new financial planning and rate model for the District. Using the model, Raftelis developed the required rate increase scenarios based on the City's capital obligations, projected expenditures, and projected debt issuance.

City of Malibu (CA)
Jonathan assisted the City of Malibu (City) as the Lead Analyst in conducting a rate update for the City's wastewater operation. Jonathan assisted in updating its financial plans, rates, and debt repayment for the wastewater and recycled water enterprises. Furthermore, Jonathan is helping the City wastewater fee charges onto the LA County Assessor property roll.

City of Santa Cruz (CA)
The City of Santa is currently updating its financial model to evaluate different water demand factors and associated drought rates, reserve policies, a comprehensive rate study, drought rates, capacity fees, and other financial/rate matters.

The City experienced a significant drought and had to allocate water. Water use was already at a historically low level, and residential water use was one of the lowest in California. With the desire to refund a debt and low commodity revenues sales, the City needed to adopt drought rates within a short period. Jonathan is currently working with the City and Raftelis team staff on completing the 2021 update.

California Rate Survey (CA)
Jonathan is the Lead analyst that conducted the CA-NA AWWA Water rate survey for water enterprises in California.

The project involved surveying rates from select water districts, which will be available for qualitative and quantitative analyses. Raftelis and CA-NVAWWA deployed a functional data visualization dashboard, which has been shared with all CA-NV agencies as a database and regional rate metric.

PROJECT LIST
• San Dieguito Water District (CA)
• City of Malibu (CA)
• Alameda County Water District (CA)
• City of Santa Cruz (CA)
• City of Camarillo (CA)
• California Domestic Water Company (CA)
• San Gorgonio Pass Water Agency (CA)
• El Toro Water District (CA)
• Madera County Groundwater Sustainability Agency (CA)
• Zone 7 Water Agency (CA)
• City of St. Helena (CA)
Agenda Item #13.1.

RAFTELIS 33
Charles Diamond

CONSULTING SUPPORT
Senior Consultant
ROLE
Charles will work at the direction of Kevin in conducting analyses and preparing deliverables for the project.

PROFILE
Charles has a background in natural resource economics and water resources management. His expertise lies in financial modeling and data analysis. He joined Raftelis initially in 2017 as an associate consultant upon receiving a master’s degree from the University of California, Santa Barbara’s Bren School of Environmental Science & Management. Charles has developed financial models and conducted analyses for water and wastewater rate studies as well as capacity fee studies.

KEY PROJECT EXPERIENCE
Alameda County Water District (CA)
Alameda County Water District (ACWD) engaged Raftelis in 2017 to provide multi-year rate design and financial advisory services. Charles provided ACWD staff with technical support in updating the existing financial plan model that Raftelis had developed for ACWD’s previous financial plan update. Additionally, Charles designed alternative inclining tiered rates for consideration by the ACWD Board and developed drought rates to be activated during ACWD’s varying drought stages as defined in the agency’s Urban Water Management Plan. Charles developed a study report for ACWD staff that outlined the financial plan update and the newly proposed drought rates. Charles also assisted other Raftelis staff in conducting a facility capacity fee study for ACWD during this time.

Antelope Valley-East Kern Water Agency (CA)
The Antelope Valley-East Kern Water Agency (Agency) engaged Raftelis in 2019 to provide an annual update of the Agency’s five-year financial plan and to propose rates for 2020. Charles served as lead analyst on the study update. He updated the existing financial plan model, and also worked with Agency staff to evaluate potential rate structure alternatives to be considered in future years. Charles developed a study report to document the key results of the study.

Antelope Valley State Water Contractors Association (CA) The Antelope Valley State Water Contractors Association (AVSWCA) engaged Raftelis in 2018 to conduct a financial analysis study to develop a proposed replacement water assessment for groundwater users in the area. Charles conducted financial analyses necessary to develop an equitable and defensible replacement water assessment that accounts for State Water Project costs incurred by AVSWCA’s member agencies. As the lead analyst on the project, Charles developed an Excel-based replacement water assessment model and drafted a study report for AVSWCA staff.

Specialties
• Utility financial analysis
• Data collection & analysis
• Statistical analysis
Professional History
• Raftelis: Senior Consultant (2021-
present); Consultant (2019-2020);
Associate Consultant (2017-2018)
• UC Santa Barbara Department of
Economics: Teaching Assistant
(2017)
• The Nature Conservancy: Science &
Stewardship Practitioner (2013-
2015)
Education
• Master of Environmental Science &
Management (Water Resources
Management) - University of
California, Santa Barbara (2017)
• Bachelor of Science in
Environmental Economics & Policy -
University of California, Berkeley
(2013)
Agenda Item #13.1.

RAFTELIS 34
City of Brentwood (CA)
The City of Brentwood (City) engaged Raftelis to conduct a water and wastewater rate study. In 2017, Raftelis helped the City evaluate the current water and wastewater utilities’ cost-of-service and adjusted rates accordingly. Recently Charles updated a financial plan model and performed a cost-of-service analysis for the City’s wastewater utility. Charles assisted with the update of existing rates as well as the development of a proposed alternative rate structure and rates.

City of Dixon (CA)
The City of Dixon (City) engaged Raftelis in 2018 to conduct a water rate study to develop updated water rates for the City’s water utility. Charles developed a 10-year financial plan model, performed a cost-of-service analysis, and developed a five-year schedule of proposed water rates. Charles also assisted in the preparation of presentation materials for water rate workshops with the City Council.

City of El Monte (CA)
The City of El Monte (City) engaged Raftelis in 2019 to conduct a water rate study. Charles attended meetings with City staff, collected and reviewed necessary data for the study, developed a user-friendly five-year financial plan model, and developed a proposed rate schedule over a five-year period. Additionally, Charles developed water shortage rates to be implemented by the City during times of declared water supply shortages. He also developed a Cost Allocation Plan model in concurrence with the water rate study to assist the City in allocating personnel costs associated with providing water service to the City’s water utility.

Goleta Water District (CA)
The Goleta Water District (District) engaged Raftelis in 2019 to conduct a water rate study. Charles developed a multiyear financial plan model, performed a cost-of-service analysis, and developed a five-year schedule of proposed water rates as Raftelis’ lead analyst on the study. Additionally, Charles prepared presentation materials for meetings with the District’s Board of Directors tings and the rate study report and drafted the study report to serve as an administrative record.

La Cañada Irrigation District (CA)
La Cañada Irrigation District (District) engaged Raftelis to conduct a water rate study. Since the last rate study was performed in 2008, Raftelis helped the District evaluate the cost-of-service and adjusted rates accordingly. In 2017, Charles developed a financial plan model for the District to support the financial plan development for fiscal years 2018 to 2027. Charles also recently performed a cost-of-service analysis to assist with the update of the District’s rates.

City of Long Beach (CA)
The City of Long Beach (City) engaged Raftelis in 2018 to develop an updated financial plan model for the City’s water and wastewater utilities. Raftelis had previously conducted a comprehensive water and wastewater cost-of-service rate study in 2016 for the City. Charles developed an updated financial plan model to be used by City staff in future financial planning efforts. The financial plan model was designed specifically to facilitate ease of use and understanding while providing for convenient and flexible scenario analysis. Charles worked with City staff to provide customized model features with specific functionalities based on requests and input from City staff.

Olivenhain Municipal Water District (CA)
Olivenhain Municipal Water District (District) engaged Raftelis in 2019 to conduct a comprehensive water rate study. As a member agency of the San Diego County Water Authority (SDCWA), the District provides water service to over 80,000 people in northern San Diego County. Raftelis had conducted the previous cost-of-service analysis and rate study for the District in 2014. As part of the rate study effort, Charles developed a new financial plan model for the District’s water enterprise, performed a cost-of-service analysis, and developed updated tiered rates based on current customer Agenda Item #13.1.

RAFTELIS 35
usage characteristics. Additionally, Charles assisted in redesigning the District’s water supply shortage rates, which are activated during periods of reduced water demand in order to recover reduced revenues from volumetric rates.

National Water and Sewerage Authority of Grenada (Eastern Caribbean) The National Water and Sewerage Authority of Grenada (NAWASA) engaged Raftelis in 2019 to conduct a water and sewer rate study for the eastern Caribbean country of Grenada’s national water and sewer utility. Charles developed a water and wastewater financial plan and rate model in Microsoft Excel and travelled out to Grenada for a week of onsite meetings with NAWASA staff. Charles worked directly with NAWASA staff to develop and refine model results, and assisted with the development of a study report to document the key results of the study.

Rancho California Water District (CA)
Rancho California Water District (District) engaged Raftelis in 2017 to conduct a water capacity fees study. Raftelis reviewed and updated the existing methodology for calculating the District’s water capacity fees, developed a water capacity fee model for use in calculating updated capacity fees. As part of the study, Charles developed the water capacity fee model, calculated updated water capacity fees, and drafted the study report.

The District engaged Raftelis in 2018 to conduct a two-year water, recycled water, and wastewater rate study. Raftelis developed a cost-of-service rate model to allocate costs and calculate rates for fiscal years 2019 and 2020. Charles assisted with rate model revisions, prepared presentation materials for meetings with the District’s Board of Directors, and drafted the rate study report.

Santa Ana Watershed Project Authority (CA)
The Santa Ana Watershed Project Authority (Authority) engaged Raftelis in 2017 to develop a rate model for the Inland Empire Brine Line, which is a pipeline used to divert non-reclaimable wastewater of high brine content from the upper Santa Ana River Basin. Raftelis reviewed and recommended changes to the Authority’s reserve policies, developed a 10- year financial plan for the Brine Line Enterprise Fund, performed a multi-year cost-of-service analysis, and developed a rate model for use in calculating rates assessed to the Brine Line’s dischargers. Additionally, Raftelis assessed and recommended potential methodologies to be used in the development of long-term capacity leasing rates and rental charges. Charles developed the financial plan, assisted with the cost-of-service analysis and rate calculation, drafted the study report, and attended multiple meeting with the Authority’s staff.

City of Simi Valley (CA)
The City of Simi Valley (City) engaged Raftelis in 2019 to conduct a water rate study for the City’s water utility. The Study included the development of a five-year financial plan, a cost-of-service analysis, and the development of proposed water rates over a five-year period. Charles served as lead analyst and conducted the vast majority of the technical analyses required for the study.

City of Sonoma (CA)
The City of Sonoma (City) engaged Raftelis in 2018 to conduct a water rate study for the City’s water utility. The study included the development of a five-year financial plan, a cost-of-service analysis, and the development of proposed water rates for fiscal years 2019-2023. Charles processed and analyzed account level billed water consumption data, assisted in development of the water rate model, and drafted the water rate study report.

City of Watsonville (CA)
Raftelis was engaged to develop 10-year financial plans for the City of Watsonville’s (City) water, wastewater, and solid waste enterprise funds. The goal was to develop a financial plan model that could be used as a financial planning tool to determine the necessary rate adjustments and bond issuances for maintaining operations as well as handling several large Agenda Item #13.1.

RAFTELIS 36
capital projects. Charles assisted with developing a water, wastewater, and solid waste financial plan and cost of service rate model as part of the study.

PROJECT LIST
• Alameda County Water District (CA) – Water rate update study • Antelope Valley-East Kern Water Agency (CA) – Water rate update study • Antelope Valley State Water Contractors Association (CA) – Replacement water assessment study • Borrego Water District (CA) – Water affordability assessment • City of Brentwood (CA) – Water and wastewater rate study • Castaic Lake Water Agency (CA) – Facility capacity fee update study • Cucamonga Valley Water District (CA) –Multi-year water and drought rate study • City of Dixon (CA) – Water rate study
• City of El Monte – Water rate study and cost allocation plan • Goleta Water District (CA) – Water rate study
• City of Huntington Beach (CA) – Water rate study update • County of Inyo (CA) – Water rate study
• La Cañada Irrigation District (CA) – Water rate study • Las Virgenes Municipal Water District (CA) – Water and wastewater rate study • City of Lincoln (CA) – Water rate study
• City of Long Beach (CA) – Water and wastewater financial plan development • Marin Municipal Water District (CA) – Miscellaneous fee study • Mojave Water Agency (CA) – Strategic financial plan
• National Water and Sewerage Authority of Grenada (Eastern Caribbean) – Water and sewer rate study • Olivenhain Municipal Water District (CA) – Water rate study • Rancho California Water District (CA) – Water capacity fee study • Rancho California Water District (CA) – Water cost of service study • Sacramento Suburban Water District (CA) – Water rate study • Santa Ana Watershed Project Authority (CA) – Inland Empire Brine Line rate model • Santa Rosa Plain, Sonoma Valley, & Petaluma Valley Groundwater Sustainability Agencies (CA) – Groundwater sustainability agency fee analysis and rate setting services • South Mesa Water Company (CA) – Water rate study and connection fee update • City of Simi Valley (CA) – Water rate study
• City of Sonoma (CA) – Water rate study
• South Mesa Water Company (CA) – Water rate study
• City of Thousand Oaks (CA) – Water financial plan update and wastewater cost-of-service rate study • City of Ventura (CA) – Water and wastewater rate study • Victor Valley Wastewater Reclamation Authority (CA) – Wastewater rate study and capacity fee study • City of Watsonville (CA) – Water, wastewater, and solid waste rate study Agenda Item #13.1.

RAFTELIS 37
Lindsay Roth

CONSULTING SUPPORT
Associate Consultant
ROLE
Lindsay will work at the direction of Kevin in conducting analyses and preparing deliverables for the project.
.

PROFILE
Lindsay has over two years of experience working in the environmental field and has a graduate degree in water resources management. At Raftelis, she has contributed to financial models and analyses for water and wastewater rate studies as well as bill impact analyses. Prior to joining Raftelis, Lindsay was a student consultant for the North Carolina Department of Environmental Quality, assessing the state’s algal bloom monitoring program and nutrient criteria. She also interned for the Conservation Trust for North Carolina, developing best practices for the organization to participate in community-based environmental justice. She is based in Raftelis’ Los Angeles Office.

KEY PROJECT EXPERIENCE
City of Coronado (CA)
The City of Coronado (City) engaged Raftelis in 2021 to review and evaluate the City’s current rate-setting methodology, update the financial plan for a five-year period, and propose rates for 2022. The City’s sewer rates included contracted transportation and treatment fees for three US Navy Campuses. Lindsay served as the lead analyst on the study update. She developed a financial plan and worked with the project team to evaluate potential rate structure alternatives.

City of Hayward (CA)
The City of Hayward (City) engaged Raftelis in 2021 to conduct a comprehensive water cost of service and rate study proposing rates for the next two years and to provide a financial plan and rate model to serve as a planning resource for future use. The project required a balance of multiple financial objectives, including managing increasing water costs from the San Francisco Public Utilities Commission while also producing rates that were affordable for all customer classes.

Lindsay served as an associate consultant on the project and assisted in the development of an updated 10-year financial plan for the City and a detailed rate study report explaining each step of the rate study process.

City of Thousand Oaks (CA)
City of Thousand Oaks (City) engaged Raftelis in 2021 to conduct water and wastewater financial plan update as well as a water rate study. Lindsay served as an associate consultant on the project and helped to develop an updated water rate model and an updated wastewater financial plan model forecasting projected revenues and expenditures for the next 5 years. The study required Raftelis to develop rates that accounted large CIP project expenditures planned for the study period for both the water and wastewater utilities while avoiding rate shock for customers. The updated models also included various capital expenditure and rate adjustment scenarios in order to aid in the City’s decision-making process.

Specialties
• Data analysis & visualization
• Water & sewer financial analysis
• Statistical analysis
Professional History
• Raftelis: Associate Consultant
(2020-present)
• North Carolina Department of
Environmental Quality: Student
Consultant (2019-2020)
• Conservation Trust for North
Carolina: Disaster Mitigation and
Climate Resiliency Intern (2019)
Education
• Master of Environmental
Management in Water Resources
Management - Nicholas School of
the Environment, Duke University
(2020)
• Bachelor of Science in Earth and
Environmental Sciences - Tulane
University (2016)
Agenda Item #13.1.

RAFTELIS 38
City of Torrance (CA)
City of Torrance (City) engaged Raftelis in 2021 to conduct wastewater rate study update. Lindsay served as the lead analyst on the project and helped to build a wastewater rate model projecting revenues and expenditures for the next 5 years. The City had recently taken on more CIP projects under the wastewater fund due to a new policy that required stormwater projects to fall under wastewater’s jurisdiction. The study required Raftelis to develop cost of service rates that generated enough revenue to fund these projects without having to issue any debt while maintaining fairness and affordability goals for all customer classes.

City of Ventura (CA)
The City of Ventura (City) engaged Raftelis in 2020 to conduct a comprehensive water and wastewater cost of service and rate study. Lindsay served as an associate consultant on the project and helped analyze the impacts of the proposed rates on monthly water and wastewater bills for each customer class.

RELEVANT PROFESSIONAL EXPERIENCE
North Carolina Department of Environmental Quality: Student Consultant (2019-2020) The Division of Water Resources at the North Carolina Department of Environmental Quality works to understand and manage the proliferation of algal blooms in lakes and reservoirs across the state. Lindsay worked with a team of Nicholas School students to analyze ambient water quality monitoring data and provide recommendations on how the agency could improve their harmful algal bloom nutrient criteria and management strategies. Her work included the development of multiple linear regression statistical models to understand the morphological drivers of lakes and reservoirs for algal blooms across the Piedmont region of North Carolina.

PROJECT LIST
• City of Coronado (CA) – Wastewater rate study
• City of Hayward (CA) – Water rate study
• Rincon Del Diablo (CA) – Reserve policy survey study
• City of Torrance (CA) – Wastewater rate study
• Thousand Oaks (CA) – Water and wastewater rate study
• City of Ventura (CA) – Water and wastewater bill impact study

PRESENTATIONS
• “Morphology and Land Use Predictors of Algal Blooms in North Carolina Piedmont Reservoirs and Lakes”, WRRI, 2020 (postponed)
Agenda Item #13.1.

RAFTELIS 39
Sam Villegas APR

OUTREACH
Senior Manager
ROLE
Sam will serve as primary architect of the stakeholder outreach program, and work with the City’s team to ensure goals and objectives are met.

PROFILE
Sam is an award-winning communications and outreach strategist, with more 25 years of experience conducting strategic communication and public outreach for public works, in the areas of water, energy, solid waste and recycling. Sam began her career helping municipalities and corporations increase their recycling rates.

From there she worked on a national campaign for EPA to promote energy efficiency investments to small businesses. After that, Sam turned her focus to water and wastewater, helping utilities and public works agencies build support for rate increases and infrastructure investments. Sam played the lead communications role at water and wastewater utility Loudoun Water and was part of the executive team at American Water, where she cultivated enterprisewide understanding and support for proactive public outreach and she executed successful education campaigns that raised awareness of issues and programs, changed behaviors and attitudes, and built trust in the organization. As an independent consultant (SaVi PR), Sam continued to advise water and wastewater utilities, as well several municipal solid waste and recycling offices with strategic communication and public engagement.

KEY PROJECT EXPERIENCE
American Water (KY)
Sam led external affairs for nine state subsidiaries of the nation’s largest investorowned water and wastewater utility, American Water. Sam provided executive level proactive and strategic PR counsel to her division’s leadership and successfully directed the development and execution of nine fully integrated communications strategies across nine states to explain complex water issues, and to elicit widespread understanding and support for rate increases, as well as positive environmental behaviors. Sam ensured all state strategies were aligned with corporate strategies and all were measurably successful using quantitative methods. Under Sam’s guidance and direction, her team of six managers (1) averted a condemnation attempt in TN; (2) restored public trust following a crisis in VA; (3) obtained a favorable ruling on a rate increase in WV; and (4) garnered widespread public support for a major infrastructure project in KY.

American Water Works Association (CO)
Guide to Risk Communication
American Water Works Association (AWWA) looked to Raftelis to develop a comprehensive risk communication guide for utilities: Trending in an Instant. Sam served as copyeditor for this guidance Specialties
• Stakeholder engagement/public
involvement programs
• Strategic communications planning &
execution
• Crisis & risk communications planning,
messaging & execution
• Community-based social marketing
(behavioural change marketing)
• Outreach program assessment &
measurement
• Development & oversight of paid
(advertising), earned (stories placed),
shared (social) & owned media
• Writing & copyediting
• Public speaking
Professional History
• Raftelis: Senior Manager (2022-present);
Director of Strategic Communication
Services (2021); Senior Consultant
(2019-2020)
• SaVi PR, LLC: Owner
• American Water: Vice President
• Loudoun Water: Manager of
Communications
• CEC: Public Affairs Specialist
• Lisboa: Senior Account Manager
• Mitchell Petersen: Account Executive
Education
• Accredited in Public Relations - The
Public Relations Society of America
• Master of Science in Environmental
Policy - Johns Hopkins University (1998)
• Bachelor of Science in Biology
(Environmental Science) - Pennsylvania
State University (1992)
Professional Memberships
• AWWA
• International Association of Public
Participation
• NACWA
• Public Relations Society of America:

Board Member
• Social Marketing Association of North
America
• Water Environment Federation
Agenda Item #13.1.

RAFTELIS 40
document, which helps utilities enhance their ability to communicate effectively when they find themselves unexpectedly in the traditional and social media spotlight. The guide provides research into the psychology and behavior behind consumer response to media-driven community fears and, more importantly, deliver targeted tools and action steps to help utilities respond effectively before, during, and after a high-profile communications issue in their service area. The guide describes proven risk communication techniques, such as how to return to productive conversation when people are communicating in a perceived high-risk environment and offers social media strategies to employ during crisis, such as how to prepare, how to react, and what to do after the crisis ends.

American Water Works Association (CO)
Communicating about Lead in Drinking Water
Upon the growing discussion of the health risks from very low levels of lead in drinking water, Sam was hired to assist AWWA in the development of a guidance document for water systems, on how and why they should proactively communicate with customers about lead exposure from drinking water, lead service line replacement, and other issues pertaining to the shared responsibility customers have with their utility, to jointly protect their family’s health. For this guide, Sam compiled and developed key messages, sample outreach materials and she provided a framework for conducting outreach on all facets of the issue.

Arlington County Water Pollution Control Bureau (VA)
In recognition of the specific and direct impacts biosolids master planning can have on the community, Sam was retained to develop a comprehensive outreach plan over the course of the master planning process. Two key pieces of the effort were a stakeholder advisor committee, comprising a cross section of interested and impacted stakeholders in the County, which met quarterly over two years, and a strategic communication plan the County staff could execute through each stage of the project through design, build and operations. This program enabled early, frequent and two-way communication with key stakeholders and residents throughout the Planning, Design and Construction phases of the project, with the goal of exchanging ideas and knowledge, as well as garnering recommendations and asking support for the technology selected. The final biosolids master plan was presented to the County Board of Supervisors with support from most stakeholders.

Association of State Drinking Water Administrators (VA) Sam began supporting the Association of State Drinking Water Administrators (ASDWA) with strategic communication and organizational development services in 2017. Sam transformed member engagement with revamped communications products such as its “Year in Review” annual report, and she has developed fact sheets, stakeholder emails, and revamped its board packet. Sam copyedits for voice, tone and grammar, all major documents and reports for ASDWA, such as its report to EPA on shortfalls of statewide funding for drinking water programs and its comments on the new Lead and Copper Rule Revisions. From a management standpoint, Sam plans and facilitates staff retreats and work sessions, coaches staff on project management, and she led the ASDWA staff and Board through the development of its first strategic plan. Sam continues to support ASDWA with strategic plan implementation and technical writing.

Charlotte Water (NC)
Raftelis was hired by Charlotte Water to help them promote a new bill design. The goal of the campaign was to ensure no one was surprised. As project manager, Sam led the Raftelis team to create a six-week, measurable promotional campaign with tagline (a bill as clear as the water we provide) and graphics, that included paid digital ads, social media, a video, billing inserts, bill and envelope messages, city newsletter articles, website, and staff newsletter article.

Connecticut Water (CT)
Sam conducted a comprehensive audit and evaluation of Connecticut Water’s employee communications program with surveys, one-on-one interviews, and small-group meetings. She also benchmarked its employee communication performance against several companies of similar structure and size.

Agenda Item #13.1.

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City of Cleveland (OH)
Sam developed a comprehensive engagement strategy to turn around public opinion of the City of Cleveland’s (City) plan for sustainably managing its waste. The strategy spelled out specific tactics to achieve the City’s objectives that included a new message platform, a series of community meetings, partnership development, and a social media plan, which was intended to work in tandem with other efforts to reset the public discourse on the topic, educate stakeholders on the waste issues the City is seeking to solve, and meaningfully engage the community in a dialogue about solutions.

City of Corpus Christi (TX)
The Raftelis team assisted the City of Corpus Christi (City) (population 326,000) with the development of a stormwater utility fee to fund the City’s stormwater management, operations, maintenance, and MS4 compliance. Ms. Villegas provided support and strategic guidance to the City on public involvement and communications. Ms. Villegas, with support from a local PR firm, conducted stakeholder research and developed a communications plan, and designed and helped facilitate a series of stakeholder advisory group meetings so affected stakeholders could have a voice into the stormwater fee development. The pandemic put a pause on the work, just as a fee was nearly finalized and Raftelis’ work with the City is on hold until 2021.

Daphne Utilities (AL)
Sam developed a crisis communication plan, crisis communication training and media spokesperson training for Daphne Utilities, a water, wastewater and gas utility in Alabama. For the crisis training, Sam walked the staff through a series of table-top exercises to test and apply the plan. For the media training, Sam provided both off and on-camera guidance, where participants learned how to hook, bridge, and flag. She then filmed them so they could apply what they learned in mock, on-camera interviews, and then she facilitated a team coaching session while watching the videos. Sam also developed and delivered a three-year strategic communications plan to guide DU’s communication and outreach activities through 2022.

Fairfax County (VA) (Sub to CDM)
Sam is currently under contract to develop and execute a strategic communication and engagement plan to help the County inform and engage internal and external stakeholders on the Tysons West Pump Station and Conveyance System. The work includes development of messages and materials, engagement strategies, facilitation of meetings and general counsel to the team on the public outreach.

City of Fort Worth (TX)
Sam designed and executed comprehensive public involvement plan to engage businesses and citizens in the development of the City of Fort Worth’s (City) comprehensive solid waste management plan. She designed and executed intercept interviews, online surveys, focus group and workshop moderator guides, and provided general counsel to leadership team on best practices for engagement and soliciting input. As a result, the City had a solid waste management plan that had the buy-in and input from its community stakeholders.

Howard County (MD)
Sam conducted a comprehensive analysis of the division of recycling’s communications and outreach program. The assessment included conducting a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis with the internal team; a county-wide digital survey, three focus groups and benchmarks with three similar communities. The Howard County Recycling Division’s (Division) current communications plan and all its educational materials as well as outreach efforts were reviewed and assessed for effectiveness in meeting the Division’s goals and all was captured in a detailed report, with specific recommendations for improvement.

Agenda Item #13.1.

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Loudoun Water (VA)
Sam served for 10 years as the organization’s first official spokesperson and lead strategic public relations counsel. She planned and executed comprehensive and integrated communications strategy across multiple platforms to explain complex water issues and elicit positive environmental behaviors; she established the utility’s first social media platforms and educated staff on their value and use; she established the utility’s first media policy and employed proactive media strategies to garner story placements in local papers, and DC’s broadcast media; she initiated and oversaw the successful and comprehensive re-branding of the organization from Loudoun County Sanitation Authority to Loudoun Water; she initiated and oversaw two major upgrades to the utility’s internet and intranet sites automating several services and improving engagement opportunities with the public; she initiated and oversaw the design and production of a 3,500 square-foot education center; she developed and oversaw the utility’s official outreach efforts on all capital projects; and she served as spokesperson to customers, elected officials, the media, community partners, school groups and others on topics of infrastructure investment, conservation, safe disposal of waste, rates, and watershed protection. Sam was an active participant and leader in the Washington DC-area on water and wastewater outreach efforts and campaigns. Sam designed and executed several summer education campaigns to reduce water use, such as a “Brown is the New Green,” photo contest that challenged customers to let their lawns go brown and a long-term outreach campaign called “Water You Thinking” which focused on Loudoun residents’ overwatering of their lawns. The photo contest garnered Washington DC broadcast TV coverage, local print coverage, and reduced the maximum daily demand by about 15 percent. Sam also developed and executed a communication plan for two major rate increases. Strategies relied on the development of relationships with key community stakeholders, such as HOA leadership, environmental groups, and elected officials to build trust and credibility for the utility’s work. Following the announcement of the utility’s largest increase in its history, the editorial board of the local paper wrote an Op-Ed urging all customers to trust the utility and support the rate increase, and at the public hearing, several customers spoke in favor of it, a first in the organization’s 50- year history.

Maryland American Water (MD)
To address long-term water supply issues, Maryland American Water was planning to build a lined, earthen embankment with a capacity of 90 million gallons of raw water on a 40-acre historic site, which would provide a 100-day water supply in case of drought or emergency. Sam developed and executed a comprehensive stakeholder engagement strategy to build public understanding and support for the project. The plan applied a mix of strategies that included media outreach, the establishment of a stakeholder advisory committee to advise the company throughout the planning and design of the project; and storytelling through a variety of means, including direct mail, social media and e-mail. Because of these efforts, Maryland American Water was able to construct the impoundment with the support of local Town and County elected officials, the development and business communities, the department of parks and recreation who partnered with the team to plan a trail system through the site, and the family whose ancestors owned the property. Historic structures were preserved throughout construction and Maryland American earned the community’s trust for developing the project with their concerns at heart.

Metropolitan Washington Council of Governments (DC)
More than 15 different water and wastewater agencies serve the residents and businesses of the metropolitan Washington, DC region. With constant movement of customers across jurisdictional boundaries for work and play, it’s hard for any single utility to reach them well; having a shared media market doesn’t always help. Sam has been working with the group to elevate their communications coordination efforts to ensure these agencies coordinate their messaging to consumers and are as consistent as possible, focusing on the topics of greatest need and least public awareness. For this project Sam oversaw deployment of the first regional digital survey on water and wastewater awareness and behaviors, as well as a series of In-Depth Interviews with utility leaders. Using this data, she developed a strategic communications plan, coordinated messaging on key focus areas, and a seasonal content calendar to ensure consistency among - and credibility for - the region’s water and wastewater sector. Sam’s work with the Metropolitan Washington Council of Governments continues, as she is counseling the Anacostia Watershed Messaging Partnership with a comprehensive 3- Agenda Item #13.1.

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year strategic outreach and messaging plan in support of raising awareness of and changing behaviors to protect the Anacostia River and its watershed.

Montgomery County (MD)
Sam provided support to the execution of a comprehensive outreach program to increase recycling of yard trimmings and to increase proper disposal of household hazardous waste throughout the county. The program employed direct mail, public service advertising, point-of-purchase displays, and earned media.

Mount Holly (NC)
Raftelis assisted the City of Mt. Holly (City) (pop. 14,000) with developing a five-year financial forecast and rate study for the water and sewer utilities. The study involved projecting revenue requirements over a 10-year period and the rates necessary to ensure the City is self-sufficient and rate structure alternatives. When the City Council approved the recommended rate increases and the rate structure changes Ms. Villegas provided the City with talking points, FAQs, an article for the City’s newsletter, an infographic that explained the rate components, and a list of recommended community outreach activities City staff could also perform. Ms. Villegas worked with the Raftelis data experts to also develop a rate calculator for the City’s website.

National Association of Clean Water Agencies (DC)
Raftelis was hired by the National Association of Clean Water Agencies (NACWA) to develop, as part of their 50th anniversary, an inspirational and aspirational story about how clean water has transformed communities over the last 50 years. Deliverables include a printed book and website, plus more than 20 case studies nationwide from NACWA members. Sam worked with the members to develop 22 case studies, she conducted research for the book and website, she is the book’s primary author and Sam provided assistance in the management of the deliverables.

Prince William County (VA)
Sam conducted a comprehensive analysis of the division of solid wastes’ communications and outreach program. The assessment included conducting a literature search; developing and conducting email surveys of the commercial sector and multi-family sector; and intercept interviews of residents. The Division’s current communications plan and all its educational materials were reviewed and assessed for effectiveness in meeting the Division’s goals and all was captured in a detailed report, with specific recommendations for improvement.

Spring Valley (DC)
Under contract to the Army Corps of Engineers, Sam conducted public engagement for the Corps’ cleanup of a formerly used defense site by recruiting for, and facilitating, a Restoration Advisory Board, composed of a cross section of community members.

Suffolk (VA)
Under contract to Army Corps of Engineers, Sam conducted public engagement for the Corps’ cleanup of a formerly used defense site by recruiting for, and facilitating, a Restoration Advisory Board, composed of a cross section of community members.

Virginia American Water (VA)
Sam provided public outreach and strategic communication to support a comprehensive program to replace the city’s aging water distribution system. At a replacement rate of approximately three to four miles of pipeline per year, it will take Virginia American Water 100 years to replace the entire system. For the residents of this historic town, that’s a lot of disruption for a long time. Sam built understanding and support for this long-term endeavor, among residents, elected officials, businesses, commuters, and other city agencies. Through a series of face-to-face meetings, key partnerships, grassroots marketing and a mix of digital strategies, Virginia American has obtained the cooperation from town agencies, Agenda Item #13.1.

RAFTELIS 44
its businesses and its citizens. In addition, Sam developed and executed the communication plan for a complicated rate increase that affected all four communities differently and added a new sewer rate structure to Dale City customer bills.

Sam developed the strategy, wrote talking points, handled media calls, developed and responded to social media posts and provided guidance to all customer service representatives.

Water Environment Federation (VA)
WEF hired Raftelis to develop a communication toolkit to help wastewater agencies communicate confidently about biosolids. Sam led the design and copywriting team that researched biosolids media coverage and interviewed agencies with successful outreach programs; then wrote a comprehensive guide and training module that walks readers through the steps needed to develop and execute a successful biosolids communication effort. The toolkit includes guidance for making the business case for proactive outreach, it covers best practices for handling a “hit piece,” for managing pushback from the community, using social media and much more, including downloadable imagery, infographics, social media posts and templates. The team also supported WEF with training on the use of the toolkit.

Water Research Foundation (CO)
For this study, Sam developed and validated a series of messages to inform those that maintain building water systems about Opportunistic Pathogens in Premise Plumbing (OPPPs), with a focus on Legionella, and to offer proven steps they can take to protect themselves (and their tenants) from waterborne disease. More specifically, Sam was tasked with (1) identifying the target audiences, routes of communication, and messages based on a series of interviews, workgroups, and material review of existing guidelines; (2) hosting a workshop to elicit experts’ review and feedback on messaging materials; (3) refine the messages and routes of communication developed in the workshop. The final document was published by the Water Research Foundation and furnished to member water utilities.

U.S. Department of Energy (DC)
Sam was hired to support DOE’s Office of Energy Efficiency and Renewable Energy (EERE). In this role, Sam ghost wrote blog posts on energy efficiency in manufacturing, she copyedited progress alerts, stakeholder emails, news releases, blog posts and web updates; she wrote talking points and prepared staff for media interviews; she oversaw all emailed requests from the media for information and interviews; she rewrote the content for the Technology to Market website and created a new navigational structure and content; she supported the development of a key message platform for Technology to Market group; and she trained managers in public speaking and developing their elevator pitches.

U.S. Environmental Protection Agency (DC)
Sam led a team that designed and launched a national education campaign to promote the benefits of energy efficiency, with a focus on the nation’s 23 million small businesses. Sam wrote case studies, helped build the program's awardwinning website, created public service advertising using celebrities Greg Germann and Peter MacNichol, and brokered partnerships with large trade organizations to help build support for the program.

PUBLICATIONS
• “Public Outreach Part II: More Cost Savings Than Cost Center,” Waste Advantage, 2015 • “Public Outreach Part I: More Science Than Art,” Waste Advantage, 2015 • “Eleven Myths About Social Media Every Water Utility Manager Should Know,” AWWA Journal, 2013 • “Take the PR Pledge, Ragan Communications,” The PR Daily, 2013 • “What Howard Stern Can Teach Us About PR,” The PR Daily, 2012 • “Re-examining A Utility’s Brand Image,” AWWA Journal, 2007 • “A Brand-New Day - Things That Shocked Me While Rebranding,” PRSA Tactics, 2007 • “Hydrant Use: Balancing Access and Protection,” AWWA Opflow, 2006 • “Changing Behavior with Social Marketing Techniques,” PRSA On the Environment Horizon, 2000 Agenda Item #13.1.

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PRESENTATIONS
• “Trending in an Instant – Principles of Risk Communication,” ACE Virtual Summit, AWWA, online, September, 2020
• “It’s Scary Out There – How to Use Social Science in Communication to Decrease Fear and Build Trust,” CAPIO Webinar, March, 2020
• “Be a Trusted Source: How to Handle Communication Challenges During COVID-19,” AWWA Webinar, March 2020
• “Trending in an Instant – Principles of Risk Communication,” Utility Management Conference, WEF, Anaheim, February, 2020
• “Get Your (Communications) Assessment in Gear,” Catalyst Conference, June, 2019 • “So, Your Market’s Been Disrupted, Now What?” Keynote Speech, Virginia Recycling Association Conference, May, 2019
• “Communications Guidance for Legionella in Building Water Systems,” San Francisco Public Utilities Commission Workshop, November, 2018
• “Communications on the Other Side of the Meter,” AWWA ACE, Philadelphia, 2017 • “Media Myths and Magic,” AWWA ACE, 2016
• “Public Outreach, It’s More Science Than Art,” WasteCon, 2015 • “Communicating About Lead Service Lines,” AWWA ACE, 2014 • “Eleven Myths About Social Media,” North Texas Water Symposium, 2013 • “The Power of Proactive Communications,” VAAWWA/VAWEA JAM, 2013 • “Building a Sustainable Brand: How to Identify, Attract and Engage Stakeholders in Your Mission,” Smart and Sustainable Pre-Conference Workshop, 2013
• “The Importance of PR To A Water Utility,” WLI Conference, 2012 • “Advocacy Communications,” PLANET Annual Conference, 2011 • “Managing Demand for the Blue in a Green is Godly World,” NAGC Conference, 2009 • “Web 2.0 Technology,” VA AWWA/VWEA JAM, 2009
• “Communicating Your Value Through Branding,” VAAWWA/VWEA JAM, 2007 Agenda Item #13.1.

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Matt Wittern APR, PMP

OUTREACH
Senior Consultant
ROLE
Working closely with the City’s project team, Matt will develop content for communications and outreach tools, coordinate with graphic designers, and serve as emcee for stakeholder engagement meetings, either virtual or in person.

PROFILE
Matt has a 20+ year public relations career serving clients and customers in the public utility, engineering and construction sectors. He excels at designing and implementing strategic communications campaigns that incorporate stakeholder input to inform, advocate and achieve behavior change. His specialty is successfully translating complex subjects and concepts into messages that are easily understood by target audiences. At Raftelis he manages strategic communications planning and implementation, as well as stakeholder engagement initiatives. Prior to joining Raftelis, Matt managed a variety of public affairs efforts at Denver Water, which included designing the public engagement and public information strategies for nearly a billion dollars’ worth of infrastructure projects, spearheading the public process for the utility’s policy decision regarding Community Water Fluoridation, and led development of processes to gain stakeholder support for preventative maintenance on critical infrastructure. He earned a B.A. in journalism, is Accredited in Public Relations (APR) from the Public Relations Society of America (PRSA) and achieved status as a Project Management Professional (PMP) from the Project Management Institute. Matt has presented at national conferences including the American Water Works Association’s ACE and the City-County Communications and Marketing Association’s (3CMA) Annual Conference. Matt’s work has earned prestigious Gold Pick Awards from the Colorado Chapter of PRSA and SAVVY Awards from 3CMA.

KEY PROJECT EXPERIENCE
Denver Water (CO)
In the wake of updated guidelines from the Centers for Disease Control and Prevention regarding management of fluoride levels in drinking water, advocates on either side of the policy issue lobbied Denver Water’s Board of Water Commissioners (Commissioners). The utility charged Matt with designing and implementing a public process to provide Commissioners with sufficient information to make a policy decision. Matt brought together local and national experts on the issue to debate the pros and cons of managing fluoride levels. This included launch of a strategic communications strategy that built community awareness about the issues that garnered support for the board’s ultimate decision. The result was a decision supported by customers who were well informed compared to the start of the campaign and a board that could stand behind the legitimacy of a policy reaffirmed by a process that included robust stakeholder involvement.

Specialties
• Strategic communication planning
• Stakeholder engagement
• Public involvement
• Community outreach
• Primary & secondary research
• Expert positioning
• Media relations
• Social media
• Art direction
• Reputation management
• Coalition building
• Advocacy campaigns
Professional History
• Raftelis: Senior Consultant (2019-
present)
• Denver Water: Senior Community
Relations
Specialist/Communications Manager
(2015-2019)
• Communication Infrastructure
Group: Counselor (2006-2015)
• CollegeInvest: Marketing
Communications Manager (2005-
2006)
• Transportation Expansion (T-REX)
Project: Community Relations
Manager (2002-2005)
• LawsComm: Client Service
Coordinator (1998-2002)
Education
• Bachelor of Arts in Technical
Journalism (Public Relations) -
Colorado State University (1999)
Professional Memberships
• Public Relations Society of America:

Accredited in Public Relations (APR)
• Project Management Institute -
Project Management Professional
(PMP)
• International Association of Public
Participation (IAP2) - Certified in
Public Participation
• WEF
• AWWA
Agenda Item #13.1.

RAFTELIS 47
Denver Water’s collection system is unbalanced, lacks resiliency and is at-risk to myriad natural disasters including wildfires, floods and drought. In the federal permitting process for the past 16 years, plans to expand the capacity of Gross Reservoir to help mitigate these risks had grown stagnant while voices of project opponents grew louder. How could Denver Water raise the profile of the nearly $500 million project and gain support from critical stakeholders and customers? How could claims of opponents be effectively rebutted and diffused? How could political support be marshaled and directed to ease the work of permitting entities and oversight authorities? Matt stepped in and became the architect of a multi-layered, multi-faceted advocacy and public information campaign designed to achieve these goals. It included:
• Primary research to gauge support of/opposition to the project, along with identification of top objections from fence sitters and opponents that helped drive key messaging. • Successful lobbying of state and federal elected officials - including then Colorado Governor John Hickenlooper - to go on record supporting the project.
• Recruiting dozens of local governments and major environmental groups to pledge their support and help negate claims by more radical/fringe environmental groups opposing the project. • Launch of stakeholder outreach plan including presentations delivered to civic organizations and creation of a community outreach office built to serve as a truth repository and venue to gather ongoing public input. • Design of a comprehensive proactive media relations campaign that targeted key stakeholders in major media outlets through third-party supporters’ letters to the editor, media tours, exclusive interview and meetings with editorial boards.
• Design of robust education campaign delivered via social media campaign that that rebutted common false claims made by project opponents in ways that did not lend them legitimacy by drawing attention to opponents directly.
• Development of a multi-layered online and multimedia presence that delivered compelling messages about the project’s purpose and need through rich storytelling, powerful imagery and the use of influential third-party advocates.

City of Port Hueneme (CA)
A rate study had not been performed for some time for this small coastal city, and the City Council stressed that affordability was a key factor for their approval. They also stressed the importance of transparency, especially as it related to ensuring the community’s significant population of individuals for whom English was not their primary language. As the strategic communications project coordinator, Matt conducted public outreach efforts for the City of Port Hueneme (City) that included the development of an infographic that explains the City’s rate structure changes, a Proposition 218 notice, and facilitated three public workshops to explain the changes. All materials were translated into Spanish-language versions to enable communication across a potential language barrier. Raftelis’ recommended rates were subsequently adopted by City Council.

Montecito Water District (CA)
This coastal community faced the opportunity to reduce its reliance on surface water sources that are becoming less and less certain due to the effects of climate change and drought. Their solution was to switch over to a guaranteed source using a state-of-the-art desalination plant. This change modified the cost structure paid by customers, but also came with benefits that were not obvious at first glance. Matt managed the implementation of a strategic communications plan that included development of a variety of communication tools and pieces that effectively made the case for why the changes planned will provide long-term community benefits. Raftelis’ recommended changes were subsequently adopted by the board of directors, who also voiced appreciation for the communications and outreach performed in the months leading up to their vote.

Cucamonga Valley Water District (CA)
The Cucamonga Valley Water District, in California’s Inland Empire, was updating its rates and fees to account for a modified pass-through fee for State Water Project water, along with aligning its tiered rate structure to more closely Agenda Item #13.1.

RAFTELIS 48
follow the varied costs of different sources of water. In addition, CVWD’s financial plan and Capital Investment Plan called for infrastructure upgrades to its aging water infrastructure before costly breaks and outages became more common. Matt coordinated the implementation of a strategic communications and outreach plan that included communication tools such as bill stuffers, FAQs, a fact sheet/infographic, and Proposition 218 notice. Misinformation about the proposed rate increase was quickly rebutted and the board of directors unanimously approved Raftelis’ rate recommendation in 2021.

Crestview-Lake Arrowhead Water Agency (CA)
Crestview-Lake Arrowhead Water Agency (CLAWA) had not had a rate increase in 26 years and needed to ensure compliance with California’s Proposition 218 requirements. CLAWA sought specialized assistance communicating the purpose and need for rate increases to customers on a strict implementation timeline. Matt provided strategic communications assistance, including guidance on messaging strategy and tactics, resulting in a successful adoption of the recommended rate adjustment.

Amador Water Agency (CA)
Amador Water Agency (AWA or “Agency”) provides treated water, untreated water, and wastewater collection and treatment services to approximately 10,000 customers across 568 square miles in Amador County. Over the years, the Agency has absorbed a variety water and wastewater systems that collectively make up its current system. These systems joined Amador Water Agency in various states of repair – often operating below industry standards and best practices.

Prior rate adjustments were difficult, and the Agency struggled to perform maintenance and make improvements on its systems to raise levels of service. Raftelis was engaged early in the rate study process, and Matt developed a customized strategic communications plan and messaging that helped the agency tell its story effectively. Using a suite of communications tools, the Agency successfully made the case for the need for rate adjustments and set itself on a path to success.

City of Santa Cruz (CA)
Residents of this popular tourist destination are some of the most water wise in the entire country, and pride themselves on their low per-capita water usage. Raftelis was engaged to perform a detailed water rates study that included a concurrent public involvement component. Over a period of 18 months – and made more difficult by the COVID-19 pandemic – Matt and colleagues at Raftelis provided strategic communications counsel and facilitated stakeholder outreach and engagement activities that informed the rate study process. This process included development of an online engagement community from scratch, multiple community presentations and strategic communication tools. Further, Matt led development and provided art direction on the Proposition 218 Notice, which is a legal requirement before City Council votes to adopt rate change recommendations.

City of St. Helena (CA)
Like many of its neighbors, the City of St. Helena is working to combat the effects of climate change. For this community in California’s wine country, customers needed to dramatically curtail their water usage to avoid more painful water restrictions. But with a modest in-house staff, the city asked Raftelis to jump in to help communicate a suite of conservation messages. Within just a period of days, Matt developed conservation messaging, social media content, infographics, newsletter articles, giveaways, fact sheets, and other tools to raise awareness among the city’s water customers, which helped result in considerable water conservation.

Western Municipal Water District (CA)
Following a successful water rate study and after defeating a court challenge, the District hired Raftelis to draft an article to share its story with other nearby providers on the tricky issue of water budgets. Working closely with the District Manager and legal counsel, Matt authored a piece and developed accompanying graphics that have been accepted for publication by editors at Journal AWWA.

Agenda Item #13.1.

RAFTELIS 49
City of Newport Beach (CA)
The City of Newport Beach (City) Utilities Division provides water service to more than 86,000 people over 50 square miles. A high-income community composed of primarily single-family residential properties, there was significant resistance to past water rate increases. For the past four years, City Council declined to increase rates, but with costs such as purchasing supplemental water rising by 75% in recent years, the time had come for action. Matt was on the Raftelis team charged with developing a comprehensive strategic communications plan, messages and communications tools, including a Proposition 218 notice. The effort communicated the great need for infrastructure improvements to ensure continued deliver of high-quality drinking water and water for fire protection. City Council voted to increase rates at the end of 2019.

Elbert County (CO)
During a recent update of Elbert County’s impact fees for Parks/Recreation, Public Facilities, Sheriff, and Transportation, Matt was the strategist behind development of the strategic communications and community outreach plan. It prescribed an extensive stakeholder engagement process featuring interactive online meetings and surveys, which informed the study prior to online work sessions with County Commissioners. County leaders credited this work with raising awareness in the community, making the study and recommendations less controversial and thus more politically acceptable.

Town of Jackson (WY)
The Town of Jackson, located in Teton County, boasts among the highest incomes of any county in the United States.

Juxtaposed against that is the thousands of hourly and service industry jobs that support the vibrant tourism industry, and Raftelis accepted the challenge to develop a water and wastewater rate structure that was fair and equitable, while pricing in complications such as the prevalence of seasonal homes that only had seasonal demand and impact on the system.

Matt led the creation of a Citizen Review Committee made up of representatives from myriad stakeholder groups.

Through a series of meetings facilitated by Matt, the CRC ensured that the recommendation ultimately delivered to the Town Council was representative of the community and included measures for affordability. In addition, Matt was the architect of a multi-pronged strategic communications program that helped raise awareness of, and support for, changes to the rate structure among town residents. This included developing a suite of communication tools including newsletter articles, website copy, bill stuffers, graphics, social media content, and a capstone printed piece that summarized the study process.

Northern Colorado Water Conservancy District (CO)
Like many parts of the state, Northern Colorado is experiencing exceptional growth, with a population that is expected to double to a half-million people by 2050. As a key raw water provider to municipalities and agricultural interests, the Northern Colorado Water Conservancy District began plans in the 1980s to provide valuable source water to 15 partners working together to make the Northern Integrated Supply Project a reality. Today, on the cusp of state and federal regulatory approvals, NISP faces opposition from a very small but vocal minority who threaten to derail the public process and stop the project by any means necessary. Millions of dollars, years of planning and thorough environmental study and protections hangs in the balance. Raftelis was hired to assist Northern with development of a comprehensive public outreach and information campaign to ensure continued public support for this critical $1.1 billion project. Matt Wittern conducted thorough primary and secondary research to inform a plan that when implemented will ensure those who will benefit most from the project will understand the value it brings and its role to help ensure a continued thriving community for years to come.

Colorado Department of Transportation (CO)
The Colorado Department of Transportation was in a pinch. After many years of costly traffic congestion through the critical I-70 mountain corridor, funding was secured to conduct the first step in the federal process to conform to Agenda Item #13.1.

RAFTELIS 50
requirements set by the National Environmental Protection Act (NEPA). After performing much of the work associated with the Draft Preliminary Environmental Impact Statement (DPEIS), concerns were raised by officials that the process had not sufficiently engaged members of the local low-income and minority communities. NEPA promotes environmental justice by requiring federal agencies to include a proposed project's potential environmental, economic, and public health impacts on low-income, minority, and rural communities. Mr. Witten was charged with designing and implementing a strategic engagement process to ensure voices from these underrepresented communities were included in the DPEIS. Teaming with partners specializing in multicultural outreach, the program successfully engaged members of this community by approaching with cultural sensitivity and appropriateness. The result was a successful integration of feedback from once underrepresented groups and satisfied environmental justice requirements.

The Colorado Department of Transportation hired Matt and a partner engineering firm to develop a report to inform the Department’s approach to public involvement. Through primary and secondary research, and by applying public involvement expertise gained over years of practice, the team delivered the comprehensive report, which became the goto source on the topic. Feedback from end-users across the state was an incredible validation of the work that was performed. Many had been directed to perform public involvement as part of their individual projects, but there was no prior guidelines for implementation. This report gave important insights, dove deep into practice and provided a solid roadmap to ensure that those most impacted by the Department’s work were properly consulted.

Drivers on Interstate 25 between Denver and Fort Collins were fed up. Northbound, the lane count abruptly went from four lanes to two just north of the metro area, creating congestion even during non-peak travel hours. In both directions, road rage was common as aggressive drivers wove in and out of traffic; creating unsafe conditions and frequent accidents that only added time and expense to travelers on this vital thoroughfare. Matt, as part of a consultant team, led community engagement efforts to gather stakeholder input on preferred alternatives to relieve the situation. The team launched a project-specific website (a near first for the time) to increase stakeholder awareness and provided multiple twoway communication channels. Open houses were hosted at strategic points in the community that were designed to lower barriers to participation, and these strategies were successful. As a result of the outreach, stakeholders were in a much better position to understand the engineering and likely funding limitations. Members of the project team benefitted from the fresh eyes of stakeholders who were being impacted by the conditions and were able to screen alternatives to those that addressed the challenges while being responsive to the public’s needs.

Denver International Airport South Terminal Redevelopment Program (CO) Commuter rail was finally coming to Denver International Airport (DIA). The question was – how and where would it connect? The good news is the $500 million program was merely a continuation of the original vision for DIA that included a world-class hotel and open-air plaza. The bad news was the multi-year construction – if managed and communicated improperly – would create chaos at one of the nation’s busiest travel hubs.

Matt was on the team hired to develop a strategic communications program designed to properly inform a variety of internal and external stakeholder groups; to convey the vision for the program while also communicating valuable coping messages to avoid or mitigate disruption from construction.

Strategic communications included a variety of stakeholder outreach strategies, including convening a Program Advisory Committee to bring together myriad groups and interests, a leading-edge diversity program to promote inclusion and opportunity, and a host of innovative communication tools (touchscreen kiosk, large vinyl floor messages, special events, etc.).

The result of the multi-year campaign was reduced frustration levels among busy travelers and a program that serves as a model for other regional construction projects that must be undertaken while the underlying infrastructure remains in operation.

Agenda Item #13.1.

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City of Wheat Ridge (CO)
Matt was the project manager on the team hired to design and implement a community-based brand identity development for the City of Wheat Ridge (City). The City’s existing brand was designed by a high school student in the mid-1970s and despite the brand’s age and dated nature, there were voices in the community opposed to the City’s rebranding. Matt designed a process that brought together key community stakeholders using a variety of public engagement techniques to draw out from them their view of what was quintessentially Wheat Ridge. These elements were then distilled down to core themes that were woven into the City’s new identity. While there was no consensus on what made Wheat Ridge Wheat Ridge, each group could literally point to an element of the brand and buy-in to the brand as a whole. The result was a process that members of City Council praised as the model for how City staff should encourage public involvement. A post-project survey found that 70 percent of respondents agreed that the new identity represents the City as a positive, progressive community.

Cherokee Denver’s Redevelopment of the Old Gates Rubber Factory (CO) An icon (and to some an eyesore) on the Denver skyline since the late-1800s, the Gates Rubber Factory was decommissioned and for decades sat empty and had fallen into disrepair. One reason it remained in such a condition for so long was the significant environmental contamination that was present at the site that had been found to be leaching chemicals into the water table and into surrounding neighborhoods. Cherokee Denver, a developer specializing in brownfield redevelopments, secured the property and began work to revitalize it into a modern mixed-use destination including residential, retail, commercial and public spaces.

Wary of powerful nearby neighborhood groups, Cherokee Denver hired Matt to lead community relations and public engagement activities designed to inform the community of future plans and incorporate public feedback to avoid political hurdles. Through a comprehensive campaign of education and outreach, Matt built valuable mutually beneficial relationships with community leaders, business interests, homeowner’s associations and elected officials. On his recommendation, Cherokee Denver convened the Cherokee Denver Redevelopment Advisory Committee, which consisted of community leaders and some of the project’s most outspoken opponents. Through dialogue and relationship building, objections from opponents dwindled and community support increased. The project resulted in a development that was properly remediated environmentally and today the community is one of the most desirable and visited in the area.

PRESENTATIONS
• “Building Support for Water Rate Increases” Colorado Municipal League 2021 Annual Conference • “Biosolids Communication Toolkit Workshop” Water Environment Federation • “Re-imagining Engagement: Harvesting what we’ve learned about virtual public engagement for the future” ACE ’21 Annual Conference
• “Re-imagining Engagement: Harvesting what we’ve learned about virtual public engagement for the future” Arizona Water Association 2021 Annual Conference
• “It’s Human Nature: Using Social Science to Enhance Your Communications,” RMSAWWA/RMWEA, 2020 • “Ensuring Public Process Legitimacy Through the Lens of The Community Water Fluoridation Issue,” AWWA ACE Conference, 2016

PUBLICATIONS
• “Leverage Social Media in Times of Crisis”, Article, Journal AWWA, 2020 Agenda Item #13.1.

RAFTELIS 52
Project Understanding
The City of St. Helena (City) provides water and wastewater services to approximately 2,500 accounts across a population of 7,000. The City, centrally located in Napa Valley, procures and treats on average 1,600 acre-feet of water supply locally from Bell Canyon Reservoir, the Stonebridge Wells, and purchased water from the City of Napa. Due to recent drought conditions, the City's water supply availability reached critical levels, triggering mandatory conservation and water allocations for all connections.

The City would like to evaluate resuming the Meter Replacement Program project. The City's Wastewater Treatment Facility, which was constructed in the 1960s, is required to meet new wastewater treatment standards set forth by the Regional Water Resources Control Board to meet stricter environmental requirements. The City is required to phase in the improvements to the wastewater treatment plant. The City, City Council, and utility ratepayers require a strategy to meet the new requirements, develop the required design and engineering documents, and construct the needed improvements.

The selected consultant for the study will conduct a financial analysis, cost of service, and rate study (Study), for the water and wastewater utilities. The financial plans, cost-of-service analyses, and proposed rates will consider strategic tools such as drought rates and alternative rate structures to incorporate the approved capital improvement plan (CIP) and achieve other policy objectives.

Project Approach
Our approach entails several distinct and interrelated work efforts. Raftelis will work with City staff on an ongoing basis via scheduled in-person meetings and web conferences to achieve project milestones on time and complete the Study on schedule. Raftelis will use the tasks described in the following to develop utility rates in compliance with Proposition 218, industry standards, and the City's goals and objectives.

While Raftelis is not a law firm, we have helped numerous agencies throughout the State develop rates and rate structures that are defensible and align with Proposition 218 requirements. Raftelis assisted the Sweetwater Authority, City of San Juan Capistrano, and Soquel Creek Water City with revised rates after their legal challenges and is confident in our approach to rate design. If desired, we will work with the City's Attorney throughout the Study to ensure that counsel, City staff, and the Raftelis project team agree prior to presenting any modifications to or new rate structures in a public forum.

Task 1: Project Initiation, Management, and Data Collection Our project management approach stresses communication, teamwork, objectivity, and accountability to meet project objectives. We believe in a no-surprises approach and communicate regularly with clients through in-person meetings and webinars so that the City is aware of the project status at all times. Raftelis' quality assurance/quality control (QA/QC) process fosters high-quality and accurate work. The process extends to a review of the Study Report to ensure that it is comprehensive and consistent with Study results and to make certain that it conveys the rationale and derivation of our recommendations and proposed rates.

We believe that a productive kick-off meeting is the most effective way to begin an engagement of this nature. Raftelis uses the kick-off meeting to perform our due diligence and ensure that project stakeholders agree to the goals, approach, PART 4 – SPECIFIC RATE STUDY APPROACH
Agenda Item #13.1.

RAFTELIS 53
work plan, schedule, and study priorities. In addition, we will discuss any pertinent background information as well as gain more familiarity with the City’s utilities. As part of the meeting, Raftelis will discern drivers for the Study, discuss current utility challenges, work with City staff to identify and prioritize objectives, develop an understanding of the financial plan and current rate structure, review the data request list, and pinpoint data gaps or questions.

A detailed data request list will be submitted before the kick-off meeting so that the City can begin assembling any appropriate data. We will also provide City staff with an agenda in advance of the meeting and detailed notes of the decisions and outcomes of the meeting.

PLANNED MEETINGS:
• One kick-off meeting with City staff
DELIVERABLES:
• Data request list
• Agenda for kick-off meeting
• Presentation materials
• Meeting minutes
Task 2: Financial Plan Development for Water and Wastewater Services
An important element in conducting a comprehensive rate study is to establish comprehensive short- and long-term financial plans for the City's utilities. Raftelis will create a model to examine the utilities' 10-year financial plan to determine the additional revenue required to ensure the financial integrity of the City's utility enterprises. Based on water use and new connection growth estimates, the financial model will project existing rate revenues to assess the current rate structure's performance as a baseline. Similarly, the model will project other operating and non-operating revenues as well as operating and capital expenses to develop a ten-year cash flow analysis for both enterprises. The cashflow analysis will determine the revenue adjustments (i.e., gross revenue increases) required while maintaining an effort to minimize rate fluctuations. In identifying the revenue adjustments, we establish the funding requirements that the recommended rates will need to achieve to fully fund system costs and other costs resulting from future standards and regulations.

In preparing these plans, we will analyze the City's current policies and practices for funding utility operations, capital facilities plans, and debt service requirements. In discussions with City staff, we will consider various financing options, or a combination of options, such as operating revenue, new debt issuances, and miscellaneous fees.

We will assist the City in achieving a suitable balance among the financing options when developing the proposed financial plans, which will accomplish the following:
• Ensure financial sufficiency to meet operating and capital costs • Achieve prudent financial reserves levels
• Meet the City's service policies and objectives
• Fairly distribute financing responsibility to appropriate users Having detailed financial plans will ensure that the City's utilities are operating in a revenue self-sufficient manner and meet debt covenant requirements. We will develop separate standalone financial plans for both the water and wastewater utilities. The financial plans for each utility will include a capital improvement financing component that ensures each utility can fully finance the City's proposed CIP while minimizing impacts to existing ratepayers and complying with any existing bond covenants.

Agenda Item #13.1.

RAFTELIS 54
Review of Financial Reserves Policies
As part of this task, Raftelis will evaluate the City's current reserve policies and may recommend changes to the existing policies that allow the utilities to meet their financial goals most effectively. These financial policy requirements will include options to identify appropriate target reserve levels to meet financial objectives while achieving other rate objectives. We will compare to the City's current reserve policies for each utility. The recommendation's goals will be to:
• Ensure sufficient cash flows for daily and yearly operations and capital projects • Provide adequate cash flows to maintain, or to quickly resume, normal service levels after exposure to unexpected risks or emergency failure
• Maintain or achieve specific credit ratings
Current reserves will be evaluated to determine if individual funds require re-balancing, elimination, or amendment to achieve the goals for which each was designed. Reserves to discuss include, and are not limited to, the following:
• Operation and Maintenance Reserve – Yearly cash flow requirements • Capital Reserve – Adopted Repair and Replacement program • Emergency Reserve – Based on the most critical and vulnerable assets • Rate Stabilization Reserve – To mitigate volatility in operating revenues and rates As part of this study, we will discuss critical challenges to the water and wastewater utilities in today's environment.

Questions to consider include:
• What are the current financial concerns to be addressed? • What potential federal, state, or local regulations will impact the City's water and wastewater operations? • What are the top risk factors to be evaluated in the Study? For example, volatile water sales, uncertain capital liabilities, emergency asset failure, etc.
• How do these risk factors financially impact the City’s utilities? Raftelis will develop a
customized financial model
that incorporates a
dashboard to allow you to
easily run scenarios and see
the impacts in real time.

Shown here is a sample
dashboard that we developed
for another project.

Agenda Item #13.1.

RAFTELIS 55
Develop Revenue Requirements
This task includes the projection of budget items, such as annual costs related to water supply, power, personnel, materials, plant investment, other O&M expenses,
transfers, reserve contributions, and debt service using assumptions based on different economic factors and
growth trends.

We will examine the effect of variations in factors that impact the utility's future revenue requirements to identify one or more financial plan options. Projecting revenue
adjustments over a multi-year planning horizon can
illustrate future rate impacts and potential challenges to the City utilities' financial situation. This will allow the City to adjust its expenses, transfers, and reserve
balances; or schedule capital projects to smooth rate
impacts and maintain financial stability.

PLANNED MEETINGS:
• Three webinars with City staff
DELIVERABLES:
• Water and wastewater financial plan models in Microsoft Excel • Rate survey in Microsoft Excel
Task 3: Cost-of-Service Analysis
Raftelis will complete a cost-of-service analysis to determine updated cost allocations to the City's utility systems to ensure costs are fairly recovered across user classes. Raftelis will incorporate the City's policy considerations and the requirements of Proposition 218 throughout the water and wastewater cost allocation process.

Water
The cost-of-service analysis will be based on industry standards and methodologies approved by the American Water Works Association (AWWA) and described in their M1 Manual: Principles of Water Rates, Fees, and Charges. Customer class cost allocations will be based on the AWWA-approved Base-Extra Capacity approach, focusing on each customer class' varying demand patterns and peak-use characteristics. At this stage, Raftelis will also identify any new customer classes, or classes to be consolidated, if warranted. Based on the revenue requirement specified in the financial plan task, expenses are functionalized and then allocated to cost causation components, including the supply (purchase of water, pumping of groundwater, and diversion of surface water), extra capacity, meter maintenance, customer, conservation, and other direct or indirect costs consistent with industry standards. This task aims to distribute the cost components to customer classes based on the cost responsibility of each. The end result is the total cost to serve each customer class and is used as the basis to develop rates for each class and tier.

Wastewater
The wastewater cost-of-service is based on industry standards and methodologies approved by the Water Environment Federation (WEF)'s and described in WEF's Manual of Practice No. 27, Financing and Charges for Wastewater Systems. We The cash flow worksheet
incorporates revenues
generated from different
sources, expenses needed to
maintain the utility systems,
any transfers in and out of the
enterprise funds, as well as the
coverage needed to meet
current and proposed debt
service requirements.

Agenda Item #13.1.

RAFTELIS 56
will rely on our experience to prepare a wastewater cost of service analysis using a methodology based on industry standards and tailored to the unique characteristics of the City's wastewater system.

Raftelis will ensure that the wastewater cost-of-service allocations focuses on appropriate service functions, appropriately allocate the cost of service to the service functions, determine how each customer class uses those services, and develop the cost allocation components of the model. Cost allocations among customer classes for the wastewater enterprise will utilize estimated wastewater generation and associated strengths demonstrated by various user groups. Based on the wastewater enterprise revenue requirement identified in the financial plan, the cost of service will be allocated to the various cost components, including operating and capital costs related to the collection, treatment, and customer costs, consistent with industry standards.

The City's existing cost of service and rate structures rely on estimated wastewater flow generation and strength by different types of commercial users and land uses. This type of structure can prove to be difficult to administer while equitably recovering costs from users since land uses and businesses may change over time. As part of the Study, Raftelis will work with City staff to ensure that accounts that have a change of use are properly updated to reflect their new wastewater generation estimates. Raftelis will discuss other approaches to grouping wastewater users to simplify the rate structure and maintain equity across classes.

The purpose of the wastewater cost-of-service analysis is to allocate the costs to the customer classes based on the relative responsibility of each. The result is the total cost responsibility required of each customer class in order to maintain the financial stability of the City's wastewater enterprise.

Throughout the water and wastewater cost allocation processes, Raftelis will incorporate the City's policy considerations and current federal, state, and local rules and regulations, such as Proposition 218. The strength of each class is determined by the biochemical oxygen demand (BOD) and total suspended solids (TSS) of the wastewater generated.

PLANNED MEETINGS:
• Two webinars with City staff
DELIVERABLES:
• Cost-of-service analysis in Microsoft Excel
Task 4: Rate Survey
Raftelis will work with City staff to conduct water and wastewater comparative rate surveys of up to six comparable communities. Raftelis has extensive experience in conducting rate surveys. We partner with the AWWA to conduct the national biennial survey of water and wastewater rates and with the California-Nevada (CA-NV) Section of AWWA to survey water and wastewater utilities in California and Nevada. Some of the data collected from the national survey may be of great use in the public outreach portion of the rate implementation. This provides Raftelis with extensive survey experience, a national database, and numerous contacts throughout the industry that will be extremely useful in collecting financial and rate information for the rate and cost of service comparison. Comparing rates with other representative agencies can provide insights into a utility's pricing policies related to service. However, care should be taken in drawing conclusions from such a comparison as some factors, including geographic location, demands, customer constituency, level of treatment, level of grant funding, age of systems, sources of supply, and rate-setting methodology, can affect the cost of providing services.

PLANNED MEETINGS:
• None
Agenda Item #13.1.

RAFTELIS 57
DELIVERABLES:
• Rate survey in Microsoft Excel
Task 5: Rate Design
Raftelis will develop the rate models with the flexibility to compare the current rate structures with proposed alternatives.

The model will be capable of examining different rate scenarios considering competing objectives, such as tiered rates to promote affordability for essential, indoor needs. The baseline rate design will preserve the current rate structure to compare the customer impacts with the alternative rate scenarios. Raftelis will also incorporate the City's new baseline demand forecast to derive base (non-shortage) commodity rates. During our analysis, we will examine how the current uniform structure for each customer class serves the City's goals. Raftelis may recommend alternatives to meet policy objectives, aid in the defensibility of rates, and assist in communicating rates to customers.

In today's rate-setting environment, it is imperative to show the nexus between the cost to serve water and the rate in each tier. Raftelis will show this nexus by tabulating the tiered rates to show each unit cost component, including water supply costs, system delivery costs, peaking costs (extra-capacity costs), and conservation costs, among others. This derivation will communicate to customers the cost drivers behind the rate for each tier. An example of our build-up of "rate components" to final commodity rates is shown in the following table. The five rate components, derived from the costof-service analysis, are summed to yield the final commodity rates.

Current and Proposed Rate Structures
The City's current water rates include a fixed monthly charge based on meter size and a variable, seasonal uniform rate per water unit. The current wastewater rates include several classifications for both residential and non-residential user classes. Residential wastewater rates include a fixed charge per billing unit and a variable rate based on water consumption (flow charges). Schools pay a fixed rate per student. Non-residential wastewater rates are categorized by customer classes and pay a fixed monthly charge based on meter size and a variable seasonal uniform rate per water unit.

Raftelis, at the direction of the City Council and staff, will examine and propose any alternative rate structures that may meet the City's policy goals. Water rate structures alternatives may include: tiered commodity rates, which increases the unit rate for water used; a water budget framework similar to the allocation structure the City implements in Phase II and Phase III water shortages; or increased fixed charges to increase revenue stability during a declared drought.

Drought Rates
The City recovers revenue in times of emergency, water shortage, or mandated conservation through special rates referred to as Drought Period Rates. The first step in developing Drought Period Rates is to examine the City's Drought / Water Water
Supply Delivery Peaking Conservation Revenue Offset
Proposed
Rates
Residential
Tier I $1.82 $1.96 $0.92 $0.00 ($0.32) $4.39
Tier II $4.04 $1.96 $1.22 $0.00 ($0.32) $6.91
Tier III $6.45 $1.96 $1.91 $0.10 $0.00 $10.43
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RAFTELIS 58
Shortage Contingency Plan. Generally, each stage in the plan targets a system-wide reduction of a certain percentage of total water demand. We will evaluate the existing rate structure including the existing stages; discuss the likely reduction in use for each class; and establish the reduction goals for each customer class for each shortage stage to achieve systemwide targets.

In developing water shortage rates four questions must be addressed:
• How should water be allocated in times of constraint? • How much will the reduction in water sales cost the City in unrecovered fixed costs? • How should the net loss be recovered to best achieve the City's objectives? • How will the proposed shortage structure affect the City's customer base? Shortage-related costs can be recovered through fixed charges, commodity rates, or a combination of both. During a water supply crisis, the City's Drought Period Rates recover revenues with an increase to the variable rate. Raftelis will develop the Drought Period Rates model with the City's existing structure as the base structure. We will discuss the validity of the current structure, any desired changes, and any recommendations by Raftelis. Mandatory water use reductions result in revenue loss from water sales reductions. Raftelis will quantify the net revenue loss and account for any additional shortage-specific costs and/or cost savings at each stage in our analysis.

Based on the demand reduction scenarios and selected water shortage rate structure, the Drought Period Rate Model will calculate the rates for each demand reduction scenario and present the resulting customer impacts in both numerical and graphical format using a Dashboard platform. We will present our findings and recommendations to the City Council, concurrent with the base rates.

PLANNED MEETINGS:
• Three webinars with City staff
DELIVERABLES:
• Draft and final rate models in Microsoft Excel
Task 6: Capital R&R Considerations and Scenarios
Working with City staff, Raftelis will develop alternative capital financing strategies that will allow the City to arrive at an optimal strategy that best meets its fiscal and public policy objectives. The capital improvement financing strategy will contain various combinations of funding from operational cash flows (PAYGO funding), reserves, and external debt.

Raftelis will work with City staff on this iterative process to determine an acceptable combination of CIP financing options to bring to the City Council for approval. Raftelis will additionally review the City's CIP investments in asset renewal and replacement. This review is a value-added service that examines each utility's goals and may translate into lower rate increases than the working strategy. Additionally, this review could determine if the utilities are reinvesting in asset renewal and replacement at appropriate levels, or if a different degree of reinvestment may be warranted and included in the multi-year rate proposal.

PLANNED MEETINGS:
• None
DELIVERABLES:
• Capital R&R scenarios in Microsoft Excel
Agenda Item #13.1.

RAFTELIS 59
Task 7: Rate Study Report
Raftelis will prepare a report documenting the rate study to serve as the City's administrative record. The purpose of this report is to document the methodology used to calculate the City's water rates and to demonstrate conformance with costof-service principles, developed with the legal requirements of Proposition 218, and guidance from the City's legal counsel. A preliminary Study Report will include an executive summary highlighting the major issues and decisions reached during the development of rates. The main body of the report will summarize: underlying model assumptions; the long-term financial plans; the cost-of-service analyses; proposed revisions to rate structures; proposed rate derivation; and customer impacts. The report will detail rate structure selection, rate design assumptions, and methodologies used to develop the proposed rates. The cost of service and rate calculations will be described in detail so that the nexus between costs and rates are clearly defined and understandable.

Raftelis will provide a report draft to City staff and the City's attorney for review and comment. We will then incorporate any revisions into the final report. The Final Report will be developed before the noticing period to ensure City customers have public access during the protest period and before the Public Hearing for rate adoption.

PLANNED MEETINGS:
• One conference call to discuss edits to the Draft Report DELIVERABLES:
• Draft and Final Reports in multiple formats
Task 8: Customer Impacts and Sensitivity Analysis
Rate adjustments stem from a change in the total revenue required to serve customers and/or changes to rate structures.

The total rate adjustment can sometimes cause "rate shock" to customers. In our impact analysis graphics, we calculate estimated monthly bills at typical usage levels, assuming the new proposed rate structure was already in place to determine the total impact of the new rate structure. The customer impact analysis will include a series of tables and figures that show projected rate impacts by customer class at various levels of usage. Understanding customer impacts and taking corrective action, if
necessary, allows us to design
public outreach strategies for
generating customer buy-in and
successful rate implementation.

The table to the right shows an
example of the customer impacts
of a rate structure change. It
indicates that a customer with a
5/8-inch meter using 20 HCF per
billing period will see a $0.80, or

1.2%, increase in the bi-monthly
bill.

Agenda Item #13.1.

RAFTELIS 60
The table to the right shows
impacts at the service level
after re-calculating each
and every one of the
agency's customer bills at
the current and proposed
rates. This shows a
distribution of effects at
different values so that the
City can appreciate rate
changes in total.

Raftelis will discuss
preliminary results with
City staff during webinars
and in-person meetings.

We will discuss the benefits
and challenges of each rate
structure and each scenario
and refine the options that
will be presented at public meetings in Task 9, Task 10, and the optional Task 11.

PLANNED MEETINGS:
• None
DELIVERABLES:
• Draft and final rate customer impacts in Microsoft Excel Task 9: City Council Workshops
An integral part of developing rates and fees is ensuring that key stakeholders are included in the process from the beginning, with the opportunity to provide meaningful input that is reflected in the final rate recommendation(s).

While we expect to break these stakeholders down to a more granular level during the planning phase, outreach at a minimum should include City staff, City Council, and utility customers.

While we anticipate the need to discuss and refine the following process, successful Raftelis studies have followed a path like the one laid out in our Tasks 9, 10, and 11.

Rate Workshop 1 | City Council & Staff | Virtual Meeting Goals:
• Gather feedback on rate study purpose, need, and vision for success • Deliver high-level overview of ongoing challenges (water emergency), CIP, and key planned investments • Provide summary of information gathered at Stakeholder Information Session #1 • Perform pricing objectives exercise; seek consensus
• Discuss financial reserves policies modifications, if recommended Agenda Item #13.1.

RAFTELIS 61
Rate Workshop 2 | City Council & Staff | On-Site Meeting Goals:
• Deliver results of water rates and fees of nearby providers as comparison tool • Provide preliminary rate structure alternatives, including high-level water bill impacts to typical customers • Provide summary of public comment gathered at Stakeholder Information Session 2 • Facilitate structure alternatives discussion and seek consensus on preferred alternative to move forward in the process
Rate Workshop 3 | City Council & Staff | On-Site Meeting Goals:
• Present results of remaining alternative, with anticipated bill impacts to typical customers • Summarize public feedback gathered at prior Stakeholder Information Session • Secure approval on recommendation(s)
• Approve development and mailing of Proposition 218 notice PLANNED MEETINGS:
• One Virtual City Council Work Session
• Two On-site City Council Work Sessions
DELIVERABLES:
• Presentation materials
• Meeting minutes
Task 10: Proposition 218 Noticing and Public Hearing
Proposition 218 Notice
Raftelis will develop narrative content and graphics for the City's Proposition 218 Notification, which must be postmarked to all property owners in the City's service area no less than 45 days prior to the public hearing to adopt rates.

Content will include all statutorily-required elements, along with strategic communications messages about the value of water services the City provides, the need for investment to deliver a secure water future, etc. Beyond satisfying legal requirements, the goal of the piece will be to describe the public process that went into the recommendations and make the case for why adoption is critical.

Once the content passes City Attorney review, Raftelis' Creative Services group will flow the content into an attractive design that will encourage your constituents to read the information and have a broader understanding of the issues.

Our pricing includes development of a press-ready PDF. It is anticipated that City staff will liaise with the printer and mail house, and contract directly with them for payment. We are able to provide liaison services at our standard hourly rates.

Public Hearing
Raftelis will develop and deliver a slide deck to set the stage at the public hearing. The presentation – developed with input and direction from City staff – will include:
• A summary of the study's purpose and need, including how CIP investments will help deliver a secure water future • A review of Council's earlier direction in terms of its vision for a successful rates study conclusion • A review of the public process that informed the recommendations (with specific examples of how stakeholder feedback was valuable)
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• Comparison of anticipated bill impacts for typical customer types, including how the rates stack up against neighboring communities (using data gathered in Task 4) PLANNED MEETINGS:
• One Public Hearing, on-site attendance
DELIVERABLES:
• Draft and Final Proposition 218 notice content
• Graphic design
• Presentation materials
Task 11: Community Engagement and Stakeholder Information Sessions
Stakeholder Information Session 1 | Open House Format | Public Invitation Goals: At a series of stations, information will be shared about the City's plans to invest in its water and wastewater infrastructure, provide information about the 2021 water crisis, and describe the public process that is embedded in the rate study. This forum would: provide information about common approaches to funding water and wastewater utility services; gather input on participants' sense of existing challenges and concerns; how they envision ensuring a secure water future; which funding approaches they feel make the most sense or that they would support; and importantly which pricing objectives they believe are most important.

Stakeholder Information Session 2 | Open House Format | Public Invitation Goals: At a series of stations:
• Compare results of pricing objectives from prior Stakeholder Information Session and City Council Rate Workshop #1
• Show results of rates and fees survey of surrounding communities • Describe rate structure alternatives (including pros and cons of each, preliminary bill impacts) • Gather stakeholder input
Note: The City may want to schedule a couple instances of this Open House to reduce barriers to participation.

Stakeholder Information Session 3 | Webinar Format | Public Invitation Goals:
• Communicate the value of water services the City provides • Summarize the challenges being faced and planned investments to deliver secure water future • Summarize rate study public process to date, and provide specific examples of how public input has informed and helped guide the study
• Share preliminary recommendation(s), including anticipated bill impacts • Answer questions and gather feedback
Note: The City may want to record and post a video of this webinar to its website to increase transparency and reduce barriers to participation.

Community Meetings 1 & 2 | Open House Format | Public Invitation Goals:
• Communicate the value of water services the City provides, summarize the challenges being faced and planned investments to deliver a secure water future
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RAFTELIS 63
• Summarize rate study public process to date and provide specific examples of how public input has informed and helped guide the study
• Share recommendation(s), including anticipated bill impacts, answer questions, and gather feedback Citizens' Advisory Committee (CAC)
Should the City desire to expand the role of stakeholder engagement, one strategy that has been successful in past engagements is creating a CAC. Typically nominated by members of City Council, or seated on a volunteer basis, CACs work closely with the consultant team to study the issues, alternatives, and other factors with the mandate to make a recommendation to City Council on adjustments to rate and fee structures, as well as rates themselves.

Two benefits of this approach include the ability for the process to proceed in a non-political space, which frequently results in creative and consensus-based recommendations. Also, individuals on the committee ideally come from disparate backgrounds and represent a good cross section of the community and customers. For example, the CRC might include a representative from a large water user (vineyard), an affordable housing advocate, an environmental representative, a restaurant owner, a hotelier, a residential customer with a large yard, and another with a more modestsized property.

Brought together on a regular basis, this facilitated group that would include key City staff, can delve far more deeply into the issues than a member of City Council or member of the general public. The recommendations these groups make to City Council are frequently accepted with far less controversy than studies we perform without this resource. We would propose to convene this group a minimum of four times over a roughly six-month study timeline.

In order for Raftelis to attend and participate in CAC meetings, the meeting schedule would need to correspond with other on-site meetings in Tasks 9, 10, and 11. The Raftelis Project Manager and/or the Raftelis Communications staff would participate in and help facilitate (where appropriate) meetings of the CAC, in conjunction with City staff.

PLANNED MEETINGS:
• Four in-person community meetings
• One virtual community meeting
DELIVERABLES:
• Graphics / displays
• Facilitation services
• Presentation materials
• Meeting minutes
Agenda Item #13.1.

RAFTELIS 64
Project Schedule
In-Person Meetings / Workshops
Web Meetings
Deliverables
Agenda Item #13.1.

RAFTELIS 65
Total Cost
Below, we have included the information required in Appendix A of the RFP and have input the titles of our proposed staff under the “Description” column. On the following page, we have included an additional detailed breakdown of our proposed fee for this project. This table includes the estimated level of effort required for completing each task and the hourly billing rates for our project team members. Expenses include costs associated with travel and a $10 per hour technology charge covering computers, networks, telephones, postage, etc.

Description Hours Standard Hourly
Rates
Quoted Hourly
Rates
Total
Project Director 53.00 $ 350 $ 350 $ 18,550
Project Manager 172.00 $ 250 $ 250 $ 43,000
Technical Reviewer 26.00 $ 275 $ 275 $ 7,150
Staff 228.00 $ 190 $ 190 $ 43,320
Communications 110.00 $ 220 $ 220 $ 24,200
Administrative 14.00 $ 80 $ 80 $ 1,120
Sub-Total $ 137,340
Out-of-Pocket Expenses $ 8,970
All-Inclusive Maximum Total Cost (Excluding Optional Task) $ 146,310 Schedule of Professional Fees and Expenses to Support the Total All-Inclusive Maximum Cost PART 5 – TOTAL COST AND HOURLY RATES
Agenda Item #13.1.

RAFTELIS 66
Hours
PD PM TR SC CM Admin Total

1. Project Management, KickOff Meeting, QA/QC and Data Collection
1 0 6 10 0 8 4 0 28 $7,000

2. Water & Wastewater
Financial Plan 3 0 4 16 4 48 0 0 72 $15,620

3. Water and Wastewater
Cost-of-Service Analyses 2 0 4 10 2 32 0 6 54 $11,010

4. Water and Wastewater
Rate Survey 0 0 0 2 0 8 0 0 10 $2,020

5. Water and Wastewater
Rate Design 3 0 6 16 4 42 0 0 68 $15,180

6. Capital R&R
Considerations and
Scenarios
0 0 1 4 8 8 0 0 21 $5,070

7. Rate Study Reports 1 0 4 12 8 56 0 4 84 $17,560

8. Customer Impacts and
Sensitivity Analysis 0 0 0 2 0 8 0 0 10 $2,020

9. City Council Workshops 1 2 12 44 0 12 4 0 72 $20,550

10. Proposition 218 Noticing
and Public Hearing 0 1 4 16 0 6 10 4 40 $9,790

11. Community Engagement
and Stakeholder Information
Sessions
1 4 12 40 0 0 92 0 144 $40,490
12 7 53 172 26 228 110 14 603 $146,310
$350 $250 $275 $190 $220 $80
$18,550 $43,000 $7,150 $43,320 $24,200 $1,120 $137,340
Total Fees $137,340
Total Expenses $8,970
Total Fees & Expenses (Tasks 1-11) $146,310
Total Fees &
Tasks Expenses
Web
Meetings
Number
of InPerson
Meetings
PD - Project Director, Jim Armstrong
PM - Project Manager, Kevin Kostiuk
TR - Technical Reviewer, Sudhir Pardiwala, PE
SC - Staff Consultants
CM - Communications Team
Admin - Administrative Support Services
Agenda Item #13.1.

RAFTELIS 67
Hourly Rates
Project team hours and expenses will be billed on the same invoice. Expenses related to travel will be billed at cost.

Additional services outside the agreed upon scope of work will be billed on a time and materials basis. Raftelis’ billing rates can be found below.

POSITION HOURLY BILLING RATE**
Chair/Chair Emeritus $475
Chief Executive Officer/President $400
Executive Vice President $350
Vice President/Principal Consultant $325
Senior Manager $285
Manager $250
Senior Consultant $220
Consultant $190
Creative Director $190
Associate $160
Graphic Designer $135
Analyst $115
Administration $85
Technology Charge* $10
*Technology/Communications
Charge: This is an hourly fee
charged monthly for each hour
worked on the project to recover
telephone, facsimile, computer,
postage/overnight delivery,
conference calls,
electronic/computer webinars,
photocopies, etc.
**For services related to the
preparation for and participation
in deposition and
trials/hearings, the standard
billing rates listed above will be
increased by an amount up to 50
percent.

Agenda Item #13.1.

RAFTELIS 68
Exceptions
We request that the City consider making the following modifications, shown in red below, to the Professional Services Agreement. Please contact us if you have any questions or concerns about these modifications.

SECTION 5 – STANDARD OF PERFORMANCE
A. … In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons in the same or similar geographical area engaged and at the same time in providing Services similar to those required of Consultant under this Agreement.

SECTION 8 – INDEMNIFICATION
A .Sections 2782 and 2782.8), as may be applicable, Consultant shall indemnify, defend, and hold harmless City, its agents, officers, officials, employees, representatives, and volunteers from any and all claims, demands, suits, loss, damages, injury, and/or liability (including any and all costs and expenses in connection therewith, including legal fees and expert witness costs) (collectively, “Liabilities”), incurred by reason of any caused by the negligent or otherwise wrongful act or omission of Consultant, its officers, agents, employees, subconsultants, and subcontractors, or any of them, under or in connection with this Agreement; and Consultant agrees at its own cost, expense and risk to defend any and all claims, actions, suits, or other legal proceedings brought or instituted against City, its agents, officers, officials, employees and volunteers, or any of them, arising out of, pertaining to, or relating to such caused by such negligent or otherwise wrongful act or omission, and to pay and satisfy any resulting judgments.

C. If any action or proceeding is brought against Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify Indemnitees as provided above, Consultant, upon notice from City, shall defend Indemnitees at Consultant’s expense by counsel reasonably acceptable to City, such acceptance… SECTION 11 – OWNERSHIP OF DOCUMENTS
A. All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents deliverables prepared, developed or discovered by Consultant in the course of providing any Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Consultant; provided that any reuse or use other than as contemplated in this Agreement shall be at the sole risk of City. When requested by City, but no later than three years after project completion, Consultant shall deliver to City all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.

B. All copyrights, patents, trade secrets, or other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, improvements, developments, works of authorship, or other products developed or created by Consultant during the course of providing Services (collectively the “Work Product”) shall belong exclusively to City. The Work Product shall be considered a “work made for hire” within the meaning of Title 17 of the United States Code. Without reservation, limitation, or condition, Consultant hereby assigns, at the time of creation of the Work Products, without any requirement of further consideration, exclusively and perpetually, any and all right, title, and interest Consultant may have in the Work Product throughout the world, including without limitation any copyrights, patents, trade secrets, or other intellectual property rights, all rights of reproduction, all rights to create derivative works, and the right to secure registrations, renewals, reissues, and extensions thereof.

EXCEPTIONS
Agenda Item #13.1.