1401 Fulton Street, Suite 802
Fresno, California 93721
P 559-436-6616
carollo.com
Project No 40186VIS / Nexus Study Proposal_Sewer_WW 1_18_2025_Final_RPF.docx January 8, 2025
Katherine Woodhull-Fuget
City of Visalia
Engineering and Building Department
315 E Acequia Ave.
Visalia, CA 93291
Subject: Water Reclamation Facility Nexus Study
Dear Katherine:
Enclosed is a Scope and Fee prepared by Carollo Eng ineers, Inc. (Carollo), to provide a nexus study for the City of Visalia (City) Water Reclamation Facility (WRF) and sewer collection system. In addition to rate study analysis, updates to the sewer master plan will be incorporat ed. The following sections outline our project team, scope, and fee for this work.
Project Team
We have selected a team that is both familiar with the City of Visalia and can provide specialized expertise in wastewater and sewer systems. Our team will provide the City with a technically sound and comprehensive plan to guide future project cost to support the WRF imp rovements. Ryan Sellman is the proposed principal-in-charge and will lead the project team. He brings extensive wastewater treatment experience and is familiar wi th handling facilities with similar operational and maintenance challenges. The project manager will be Reace Fisher , who will be responsible for day-to-day communication with th e City and the project team. Reace will be supported by a team of qualified staff essential to meeting the pr oject goals. Isalah Barnes , who has been supporting the City on the collection system rate study and has over 16 years of related financial experience, will serve as the project’s financial technical advisor. She has not only served the City of Visalia, but numerous clients with rate study/nexus study projects throughout California. Ryan Orgill will lead the planning efforts team. Ryan has over 20 years of hydraulic modeling support and helped the City on t heir last two master plan updates.
Scope of Work
The following scope of work is our interpretation of the City’s base scope of work provided and our understanding of the desired changes after City rev iew. There are sub-tasks included in this scope of work without associated sub-task fees in the detailed co st schedule. These tasks are described in detail to provide clarity on the overall completion of the project pe r City direction, however were included in the original project and therefore, are not double counted in the fee.
Wastewater Reclamation Facility Tasks
New Task WRF -1 Fund 232 Treatment Plant Expansion Impact Fee Development Using the newly adopted Water Reclamation Facility Master Plan as a starting point, Carollo will calculate Development Impact Fees for the Treatment Plant Exp ansion (232) Fund in compliance with AB 1600, the California Mitigation Fee Act. The scope of work on the following pages outlines our proposal for this study.
Katherine Woodhull-Fuget
City of Visalia
WRF -1.1 : Project Initiation
A kickoff meeting will be used to formalize lines o f communication between Carollo and the City’s team, finalize the project schedule, and ensure project goals and objectives are clearly defined, delineated, and understood by all parties. Additionally, milestones for project deliverables will be established.
Carollo will prepare a data request list and submit it to the City staff upon Notice to Proceed. As data is received, we will review each data item for completeness and clarity so we can follow up with additional requests or questions if needed.
Task WRF -1.1 Deliverables
Kick-off meeting workshop with City staff.
Data request list.
WRF -1.2 : Review Existing Impact Fee
Carollo will review impact fees, including methodol ogy, for reasonableness and adherence to industry best practices and California legal requirements.
Task WRF -1. 2 Deliverables
Technical memorandum on methodology review.
WRF -1.3 : Calculate Development Impact Fees
Carollo will calculate the costs associated with adding new connections to its water reclamation system. Under this task we will assess the current capacity available and estimate capacity added by growth-related projects.
Task WRF -1. 3 Deliverables
Identify impact fee methodology.
Calculate impact fee.
Meeting to discuss results (web-based).
WRF -1. 4: Benchmarking
Carollo will compare City existing and proposed imp act fees to up to 10 comparative California cities. We will confirm with the City the comparative cities and use in any fee comparison data and materials the City has previously prepared.
Task WRF -1. 4 Deliverables
Benchmarking results in PowerPoint or Excel format.
WRF -1. 5: Stakeholder Outreach
Carollo will facilitate two stakeholder meetings to present and work through key objectives, challenge s, project updates, and preliminary Study results. The first stakeholder meeting should occur towards the beginning of the study, while the second stakeholder meeting should occur after preliminary results are discussed with City staff.
Katherine Woodhull-Fuget
City of Visalia
Task WRF -1. 5 Deliverables
Facilitate two stakeholder outreach meetings (in-pe rson). Minutes for each meeting.
WRF -1. 6: Documentation and Presentation
Carollo will present preliminary findings and recom mendations in successive drafts for review and comment by City staff (up to 2 revisions of each report before authorization to produce final). Carollo will incorporate City comments and revisions into the Final Nexus Study R eport. The Nexus Study Report will comply with the most recent California legal requirements (such as AB 602) and include all aspects identified in the California Department of Housing and Community Development Imp act Fee Nexus Studies Template.
Carollo will attend and present the Final Nexus Study Report to City Council at a public hearing for adoption.
Task WRF -1. 6 Deliverables
Draft Report (in both Microsoft Word and PDF formats) with up to two (2) revision cycles. Final Nexus Study Report (in both Microsoft Word an d PDF formats). Attendance and presentation (in both Microsoft PowerPoint and PDF formats) of Final Nexus Study Report at one (1) City Council meeting
Present the Final Nexus Study Report to City Counci l at one (1) public hearing for adoption.
New Task WRF -2 – Fund 431 Wastewater Operations Rate Study Fund 431, known as both “Wastewater Operations” and “Wastewater Treatment Plant”, is the main wastewater fund and covers operation and maintenance of both t he Water Reclamation Facility and the sanitary sewe r collection system. The following scope of work outlines our proposal for this study.
WRF -2. 1: Project Initiation
A kickoff meeting will be used to formalize lines o f communication between Carollo and the City’s team, finalize the project schedule, and ensure project goals and objectives are clearly defined, delineated, and understood by all parties. Additionally, milestones for project deliverables will be established. This kickoff meeting will be in conjunction with the kickoff meeting for Task WRF-1 Fund 232 Treatment Plant Expansion Impact Fee Development.
Carollo will prepare a data request list and submit it to the City staff upon Notice to Proceed. As data is received, we will review each data item for completeness and clarity so we can follow up with additional requests or questions if needed.
Task WRF -2.1 Deliverables
Kick-off meeting workshop with City staff.
Data request list.
Katherine Woodhull-Fuget
City of Visalia
WRF -2. 2: Revenue Requirements
Carollo will analyze the short- and long-term sufficiency of the fund’s existing revenues against exis ting and forecasted operational and capital expenditures, including potential repair and replacement needs that have been identified in the City’s capital improvement program. The revenue requirements analysis will be undertaken in close collaboration with City staff. Future changes in expenditures due to regulatory requirements, including both capital and level of service objectives, can be evaluated and incorporated into the forecast.
A multi-year financial plan will be prepared with projections of expenses, revenues, and reserves. The se expense projections will focus on providing adequate funding for operating and capital expenses. The projected reserve fund balances are a critical element of the revenue requirements and financial plan. Carollo will evaluate the types, sources, and uses of reserve funds to approp riately forecast uses and funding requirements. The multi-year financial plans will indicate the annual revenue increases needed to fund the project expenses and to maintain adequate reserves.
Task WRF -2.2 Deliverables
10-Year revenue requirement forecast.
Workshop with City staff (web-based).
WRF -2. 3: Cost of Service Analysis
The cost of service analysis will justify and allocate the revenue requirements among customer classes . A cost of service analysis will be conducted, beginning with updating the functional and cost component allocati ons to customer service, flow, BOD5, and TSS. Separate allocations for O&M and capital costs will be developed. Carollo uses methodologies endorsed by the Water Environmen t Federation (WEF) to allocate costs to functional categories, cost components, and customer classes. However, we do not rely on industry standard alloca tion factors; we determine the appropriate allocation factors that reflect how you operate your system, how you determine capital needs, and how your customers use your system. The cost of service analysis will also consider allocation of costs to the community of Goshen and industrial customers.
WRF -2. 4: Rate Design
Where the cost of service analysis determines the allocation of costs between various functions, a rate design is used to ensure each customer, within a class, is paying their appropriate and reasonable share. Carollo will evaluate up to two rate structure alternatives. We will develop a five-year rate plan to transition the City from your existing rates to cost-based rates by Year 5. Any proposed rates will be in compliance with City ordinances and voter-approved propositions, and state and fede ral regulations and requirements.
Carollo will determine the impact of proposed rates on varying customer types, ranging from residential to industrial, low volume to high volume.
Task WRF -2. 4 Deliverables
5-year rate schedule.
Up to two (2) rate design alternatives.
Katherine Woodhull-Fuget
City of Visalia
Bill impacts.
WRF -2.5 : Review Industrial User Fees and Penalties
Carollo will review existing industrial user fees and penalties for industrial users and calculate updated cost-based fees and penalties. This process includes identifyi ng direct and indirect costs associated with non-compliance.
Task WRF -2. 5 Deliverables
5-year schedule industrial user fees.
Cost-based industrial user penalties.
WRF -2. 6: Community Outreach
Carollo will facilitate with City staff up to two community meetings to present study updates and find ings. We will assist City staff to prepare presentation materials prior to each meetings. Some community members may not be familiar with cost of service and rate design, so m uch of the material may be focused on educating members about cost of service and rate design principles an d methodologies. We will help ensure that the attendees understand the process and calculations that result in our recommendations.
Task WRF -2. 6 Deliverables
Facilitate two community outreach meetings (in-pers on). Minutes for each meeting.
WRF -2. 7: Documentation and Presentation
Carollo will present preliminary findings and recom mendations in successive drafts for review and comment by City staff (up to 2 revisions of each report before authorization to produce final). Carollo will incorporate City comments and revisions into the Final Nexus Study R eport.
Carollo will attend and present the draft and Final Rate Study Report to City Council at up to two meetings.
Task WRF -2. 7 Deliverables
Draft Report (in Microsoft Word and PDF formats) wi th up to two (2) revision cycles. Final Sewer Rate Study Report (in Microsoft Word an d PDF formats). Attendance and presentation (in Microsoft PowerPoint and PDF formats) of Final Sewer Rate Study Report at two (2) City Council meetings.
WRF -2. 8: Proposition 218 Support
Carollo will prepare draft Proposition 218 notifica tions to property owners (English and Spanish). Carollo will incorporate City staff and the City attorney’s comments and revisions into the final Proposition 218 notifications.
The City will send notifications to property owners.
Task WRF -2. 8 Deliverables
Draft Proposition 218 notice (in native file and PD F formats).
Katherine Woodhull-Fuget
City of Visalia
Final Proposition 218 notice(in native file and PDF formats), Task WRF -3 – WRF Project Management
Project management activities associated with tasks WRF-1 and WRF-2 will be conducted as part of this task, including day-to-day administration, communication with the City, coordination, and progress meetings. Carollo will administer the project to maintain project schedule and budget. The project progress and budget status will be included in monthly progress reports that will b e attached to billing invoices. Additionally, monthly progress reports shall include a list of work completed for the period and meeting minutes for all meetings held during the time period.
Biweekly project status meetings/calls between the project team and the City will also be conducted as a part of this task. Carollo shall clearly state in their proposal what the expected project duration is and how many biweekly calls are anticipated. Carollo will be responsible for providing meeting agendas and minutes for each meeting. Meeting agendas shall be provided to the C ity 2 working days prior to the meeting and meeting minutes shall be provided to the City within 2 working days after the meeting. These agendas and minutes shall clearly outline any needs from the City and dates w hen the information is needed by.
Sewer Tasks
Task SS -1 – Sewer Nexus Study Additional Work
In addition to the scope outlined in the original Task 10 Nexus Study, the Sewer Impact Fee Nexus Stud y Approach will need to be updated to meet the requirements of recent California legislation such as AB 602 from 2021. The Nexus Study Report shall include all aspects identified in the California Department of Housing and Community Development Impact Fee Nexus Studies Temp late. The below scope is to account for the additional effort required beyond the scope outlined in Task 1 0 of the original contract.
Task SS -1.1 : Project Initiation
A kickoff meeting will be used to formalize lines o f communication between Carollo and the City’s team, finalize the project schedule, and ensure project goals and objectives are clearly defined, delineated, and understood by all parties. Additionally, milestones for project deliverables will be established.
Carollo will prepare a data request list and submit it to the City staff upon Notice to Proceed. As data is received, we will review each data item for completeness and clarity so we can follow up with additional requests or questions if needed.
Task 1 .1 Deliverables
Kick-off meeting workshop with City staff.
Data request list.
Task SS -1.2 : Calculate Sewer Impact Fees
Carollo will review and confirm the previously agre ed upon impact methodology for appropriateness. Carollo will utilize the model developed in the original Task 10 Study. The recommended impact fee will be in line with industry best practices and in compliance with California legislation.
Katherine Woodhull-Fuget
City of Visalia
Task 1. 2 Deliverables
Identify impact fee methodology.
Calculate impact fee.
Meeting to discuss results (web-based).
Task SS -1. 3: Sewer Impact Fees Documentation and Presentation Carollo will present preliminary findings and recom mendations in successive drafts for review and comment by City staff (up to 2 revisions of each report before authorization to produce final). Carollo will incorporate City comments and revisions into the Final Nexus Study R eport. The Nexus Study Report will be a standalone document, separate from the Sewer Master Plan, and will include all aspects identified in the California Department of Housing and Community Development Imp act Fee Nexus Studies Template.
Carollo will attend and present the draft and Final Rate Study Report to City Council one meeting.
Task 1. 3 Deliverables
Draft Sewer Impact Fee Nexus Report (in Microsoft Word and PDF format) with up to two (2) revision cycles. Final Sewer Impact Fee Nexus Report (in Microsoft Word and PDF format). Attendance and presentation (in Microsoft PowerPoint and PDF format) of Final Sewer Rate Study Report at one City Council meeting.
Task SS -2 – SS Project Management
Project management activities associated with task SS-1 will be conducted as part of this task, including day-to- day administration, communication with the City, co ordination, and progress meetings. Carollo will adm inister the project to maintain project schedule and budget . The project progress and budget status will be included in monthly progress reports that will be attached to b illing invoices. Additionally, monthly progress reports shall include a list of work completed for the time period and meeting minutes for all meetings held during the time period.
Biweekly project status meetings/calls between the project team and the City will also be conducted as a part of this task. Carollo shall clearly state in their proposal what the expected project duration is and how many biweekly calls are anticipated. Carollo will be responsible for providing meeting agendas and minutes for each meeting. Meeting agendas shall be provided to the C ity 2 working days prior to the meeting and meeting minutes shall be provided to the City within 2 working days after the meeting. These agendas and minutes shall clearly outline any needs from the City and dates w hen the information is needed by.
Fee Proposal
The following proposed fee schedule is included to provide a lump sum effort to complete the above-described scope of work.
Katherine Woodhull-Fuget
City of Visalia
Task Lump Sum Cost
Task WRF-1 Fund 232 Treatment Plant Expansion Impact Fees $79,200 Task WRF-2 Fund 431 Wastewater Operations Rate Study $134,700 Task WRF-3 WRF Project Management $7,900
Task SS-1 Sewer Nexus Study Additional Work $14,100
Task SS-1 SS Project Management $3,000
Total $238,900
Work will be completed on a Lump Sum basis and bill ed by percent complete for each task provided in the above fee proposal table. Schedule will be updated and adjusted to meet the City’s timeline and allow for proper internal review of the deliverables, along with upd ates for council/public presentations. The project management tasks are estimated for a project duration of 18-mo nths from notice to proceed.
We look forward to working with you on this project . Please feel free to contact Reace Fisher (559)-696-4961 for questions, comments, or changes.
Sincerely,
CAROLLO ENGINEERS, INC.
Ryan Sellman, PE Reace Fisher, PE
Principal-in-Charge Project Manager
RS:sm
Principal-in-
Charge
Project
Manager
Technical
Advisor
Project
Engineer
Staff
Analyst
Engineering
Support
Document
Processing/
QC
Task Task Description
Ryan
Sellman
Reace
Fisher
Isalah
Barnes Ryan Orgill
$311 $291 $325 $240 $154 $291 $142
Wastewater Project
WRF-1 4 116 8 8 148 26 0 310 $69,878 $9,300 $79,200
WRF-1.1 Project Initiation 4 8 0 0 14 2 0 28 $6,310 $0 $6,300 WRF-1.2 Review Existing Impact Fee 0 12 2 2 6 0 0 22 $5,546 $0 $5,500 WRF-1.3 Calculate Develepment Impact Fees 0 24 2 2 48 8 0 84 $17,834 $0 $17,800 WRF-1.4 Benchmarking 0 8 1 1 24 0 0 34 $6,589 $0 $6,600 WRF-1.5 Stakeholder Outreach 0 32 1 1 16 12 0 62 $15,833 $0 $15,800 WRF-1.6 Documentation and Presentation 0 32 2 2 40 4 0 80 $17,766 $0 $17,800 WRF-2 8 212 20 20 228 32 4 524 $120,472 $14,200 $134,700 WRF-2.1 Project Initiation 8 8 0 0 8 2 0 26 $6,630 $0 $6,600 WRF-2.2 Revenue Requirements 0 40 6 6 60 2 0 114 $24,852 $0 $24,900 WRF-2.3 Cost of Service Analysis 0 40 2 2 40 8 0 92 $21,258 $0 $21,300 WRF-2.4 Rate Design 0 22 2 2 32 2 0 60 $13,042 $0 $13,000 WRF-2.5 Review Industrial User Fees and Penalties 0 16 2 2 24 2 0 46 $10,064 $0 $10,100 WRF-2.6 Community Outreach 0 30 2 2 16 12 0 62 $15,816 $0 $15,800 WRF-2.7 Documentation and Presentation 0 48 4 4 40 4 4 104 $24,120 $0 $24,100 WRF-2.8 Proposition 218 Support 0 8 2 2 8 0 0 20 $4,690 $0 $4,700 WRF-3 Project Management 2 16 0 8 0 0 0 26 $7,198 $700 $7,900 14 344 28 36 376 58 4 860
$4,354 $100,104 $9,100 $8,640 $57,904 $16,878 $568 $197,548 $24,200 $221,800 SS-1 20 2 2 20 6 0 0 50 $13,176 $900 $14,100
SS-1.1 Project Initiation 8 0 0 8 2 0 0 18 $4,716 $350 $5,000 SS-1.2 Calculate Sewer Impact Fees 12 2 2 12 4 0 0 32 $8,460 $550 $9,000 SS-1.3 Sewer Impact Fees Documentation and Presentation 0 0 0 0 0 0 0 0 $ $0$0 SS-2 Sewer Project Management 1 8 0 0 1 0 0 10 $2,793 $200 $3,000 21 10 2 20 7 0 0 60
$6,531 $2,910 $650 $4,800 $1,078 $0 $0 $15,969 $1,100 $17,100 Total Project Costs: $10,885 $103,014 $9,750 $13,440 $58,982 $16,878 $568 $213,517 $25,300 $238,900 Notes:
2. Budget is based on a 18-month overall project completion schedule.
3. Other Direct Costs include, project expenses and materails, public comment workshops, workshop materials, expert necessary travel.
Wastewater Total Hours:
Wastewater Total:
Carollo Labor
Total
Hours
Labor
Cost
Other Direct Costs
Total Cost (1,2)
Nexus Study Support
FEE
CITY OF VISALIA
1. Budget is based on an estimated level of effort based on our interpretation of the project requirements based our discussions with the Owner.
Fund 232 Treatment Expansion Impact Fee Development
Fund 431 Wastewater Operations Rate Study
Sewer Total:
Sewer Project
Sewer Nexus Study Additional Work
Sewer Total Hours:
January 8, 2025
Total ODC Cost