under this Contract due to the willful or negligent acts (active or passive) or errors or omissions by Consultant or Consultant's officers, employees or agents.
SECTION 9. INSURANCE.
A. Errors and Omissions Insurance. Consultant shall obtain and maintain in full force throughout the term of this Contract a professional liability insurance policy (Errors and Omissions), in a company authorized to issue such insurance in the State of California, with limits of liability of not less than One Million Dollars ($1,000,000.00) to cover all professional services rendered pursuant to this Contract.
B. Auto and Commercial General Liability Insurance. Consultant shall also maintain in full force and effect for the term of this Contract, automobile insurance and commercial general liability insurance with an insurance carrier satisfactory to City, which insurance shall include protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any actual occurrence arising out of the performance of this Contract. The amounts of insurance shall not be less than the following:
(1) Commercial general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, such limit shall apply separately to each project Consultant performs for City. Such insurance shall (a) name City, its appointed and elected officials, and its employees as insureds; and (b) be primary with respect to insurance or self-insurance programs maintained by City and (c) contain standard separation of insured's provisions.
(2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.
C. Workers’ Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Consultant shall be insured against liability for Workers’ Compensation or undertake self-insurance. Consultant agrees to comply with such provisions before commencing performance of any work under this Contract.
D. Proof of Insurance to City before Notice to Proceed to Work. Consultant shall satisfactorily provide certificates and endorsements of insurance to the City Clerk before Notice to Proceed to Work of this Contract will be issued. Certificates and policies shall state that the policy shall not be canceled or reduced in coverage without thirty (30) days written notice to City. Approval of insurance by City shall not relieve or decrease the extent to which Consultant may be held responsible for payment of damages resulting from services or operations performed pursuant to this Contract. Consultant shall not perform any work under this Contract until Consultant has obtained the required insurance and until the required certificates have been submitted to the City and approved by the City Attorney. If Consultant fails or refuses to produce or maintain the insurance required by these provisions, or fails or refuses to furnish City required proof that insurance has been procured and is in force and paid for, City shall have the right at City's election to forthwith terminate this Contract immediately without any financial or Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
contractual obligation to the City. As a result of such termination, the City reserves the right to employ another consultant to complete the project.
E. Written notice. Contractor shall provide immediate written notice if (1) any insurance policy required by this Contract is terminated; (2) any policy limit is reduced; (3) or any deductible or self insured retention is increased.
SECTION 10. NON-DISCRIMINATION.
Consultant shall not discriminate, in any way, against any person on the basis of age, sex, race, color, creed, national origin, or disability in connection with or related to the performance of this Contract.
SECTION 11. TERMINATION.
A. City and Consultant shall have the right to terminate this Contract, without cause, by giving not less than ten (10) days written notice of termination.
B. If Consultant fails to perform any of its material obligations under this Contract, in addition to all other remedies provided by law, City may terminate this Contract immediately upon written notice.
C. The City Manager is empowered to terminate this Contract on behalf of City.
D. In the event of termination, Consultant shall deliver to City copies of all work papers, schedules, reports and other work performed by Consultant and upon receipt thereof, Consultant shall be paid in full for services performed and reimbursable expenses incurred to the date of termination.
SECTION 12. COMPLIANCE WITH LAWS.
Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments. Consultant shall obtain and maintain a City of Watsonville business license during the term of this Contract.
SECTION 13. GOVERNING LAW.
City and Consultant agree that the law governing this Contract shall be that of the State of California. Any suit brought by either party against the other arising out of the performance of this Contract shall be filed and maintained in the Municipal or Superior Court of the County of Santa Cruz.
SECTION 14. PRIOR CONTRACTS AND AMENDMENTS.
This Contract represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Contract may only be modified by a written amendment.
SECTION 15. CONFIDENTIAL INFORMATION.
All data, documents, discussions, or other information developed or received by or for Consultant in performance of this Contract are confidential and not to be disclosed to Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
any person except as authorized by the City Manager or his designee, or as required by law.
SECTION 16. OWNERSHIP OF MATERIALS.
All reports, documents or other materials developed or received by Consultant or any other person engaged directly by Consultant to perform the services required hereunder shall be and remain the property of City without restriction or limitation upon their use.
SECTION 17. COVENANT AGAINST CONTINGENT FEES.
The Consultant covenants that Consultant has not employed or retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure the Contract, and that Consultant has not paid or agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fees, commissions, percentage, brokerage fee, gift, or any other consideration contingent on or resulting from the award or making of this Contract, for breach or violation of this covenant, the City shall have the right to annul this Contract without liability, or in its discretion, to deduct from the contract price or consideration or otherwise recover, the full amount of such fee, commission, percentage fee, gift, or contingency.
SECTION 18. WAIVER.
Consultant agrees that waiver by City or any one or more of the conditions of performance under this Contract shall not be construed as waiver of any other condition of performance under this Contract.
SECTION 19. CONFLICT OF INTEREST.
A. A Consultant shall avoid all conflict of interest or appearance of conflict of interest in performance of this Contract. Consultant shall file a disclosure statement, if required by City Council Resolution, which shall be filed within thirty (30) days from the effective date of this Contract or such Resolution, as applicable.
B. No member, officer, or employee of the City, during their tenure, or for one (1) year thereafter, shall have any interest, direct or indirect, in this Contract or the proceeds thereof and Consultant agrees not to allow, permit, grant, transfer, or otherwise do anything which will result in such member, officer, or employee of the City from having such interest.
SECTION 20. AUDIT BOOKS AND RECORDS.
Consultant shall make available to City, its authorized agents, officers and employees, for examination any and all ledgers and books of account, invoices, vouchers, canceled checks and other records or documents evidencing or related to the expenditures and disbursements charged to the City, and shall furnish to City, its authorized agents and employees, such other evidence or information as City may require with respect to any such expense or disbursement charged by Consultant.
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SECTION 21. NOTICES.
All notices shall be personally served or mailed, postage prepaid, to the following addresses, or to such other address as may be designated by written notice by the parties:
CITY
City Clerk
275 Main Street, Suite 400
Watsonville, CA 95076
(831) 768-3040
CONSULTANT
Raftelis Financial Consultants, Inc.
611 Wilshire Blvd, Suite 900
Los Angeles, CA 90017
(951) 376-4405
SECTION 22. EXHIBITS:
Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
WITNESS THE EXECUTION HEREOF, on the day and year first hereinabove written.
CITY
CITY OF WATSONVILLE
BY______________________________
Tamara Vides, City Manager
ATTEST:
BY ______________________________
Irwin I. Ortiz, City Clerk
APPROVED AS TO FORM:
BY ______________________________
Samantha W. Zutler, City Attorney
CONSULTANT
RAFTELIS FINANCIAL CONSULTANTS,
INC.
BY______________________________
Kevin Kostiuk, Senior Manager
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EXHIBIT “A”
SCOPE OF SERVICES
The scope of services is as follows:
As described in the proposal submitted by Raftelis Financial Consultants, Inc. for the Request for Proposal (RFP) for the Consulting Services for Water, Sewer, and Solid Waste Utility Rate Study.
See attachment labeled EXHIBIT “A”.
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE
Services shall commence immediately upon execution of this Contract. All services performed under the provisions of this Contract shall be completed in accordance with the following schedule:
From July 1, 2025, to June 30, 2027.
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EXHIBIT “C”
COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed Two Hundred Thousand dollars ($200,000).
b. Basis for Payment. Payment(s) to Consultant for services performed under this contract shall be made as follows and shall include payment for reimbursable expenses:
Payment in the form of check will be mailed within Net 30 days from invoice date. c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation.
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EXHIBIT "A"
pg. 1 of 58
City of Watsonville
Public Works & Utilities
Courtney Lindberg, Director
275 Main St, Watsonville, CA 95076
[RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT RFP No. TBD
CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY RESPONSE DEADLINE: June 20, 2025 at 4:00 pm
Report Generated: Saturday, June 21, 2025
Raftelis Financial Consultants, Inc. Response
CONTACT INFORMATION
Company:
Raftelis Financial Consultants, Inc.
Email:
[email protected]
Contact:
David George
Address:
227 W. Trade Street
Suite 1400
Charlotte, NC 28202
Phone:
N/A
Website:
www.raftelis.com
Submission Date:
Jun 20, 2025 11:29 AM (Pacific Time)
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EXHIBIT "A"
pg. 2 of 58
[RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT RFP No. TBD
CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY [RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT Request For Proposal - CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY
ADDENDA CONFIRMATION
Addendum #1
Confirmed Jun 20, 2025 11:27 AM by David George
QUESTIONNAIRE
1. Proposal Submittal Requirements
This section contains instructions on how to prepare and submit a response to this solicitation. a) Submittal Cover
The submittal cover shall include the title, submittal due date, name, address, telephone and fax numbers, and e-mail address of the principal contact.
b) Table of Contents
The table of contents shall be complete and clear, listing headings and pages to enable easy reference. c) Cover Letter
The cover letter shall be brief. Any changes to the submittal format or deletions of requested material should be explained in the cover letter. Additional cover letter inclusions are the respondent’s primary contact (include address, e-mail address and telephone number), responsible for all queries made during the intake and processing of the response and the location of the office(s) housing individuals assigned to provide services.
d) Statement of Understanding and Methodology
The statement of understanding shall contain a written narrative that demonstrates the respondent’s understanding of the services required by the City.
e) Experience with Comparable Utility Enterprise Financial Analysis and Rate Study Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
EXHIBIT "A"
pg. 3 of 58
[RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT RFP No. TBD
CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY [RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT Request For Proposal - CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY
This section shall include examples of the respondent’s experience related to the Scope of Work. Provide a list of five successfully completed cost of services analysis and rate studies and current studies underway by the respondent that are closely related to the Scope of Work.
Project examples shall be listed consecutively and include the name(s) and telephone number(s) of the respondent’s project manager and the client’s project manager.
f) Project Personnel
This section shall identify the contact person with primary responsibility for the study and the personnel proposed to work on the study. The persons listed will be considered committed to the study with no substitutions without prior agreement with City of Watsonville. A résumé for each professional person assigned to the study shall be submitted. g) Organization Chart
This section shall include an organization chart containing the names of all key personnel with titles and their specific task assignment for this contract. If any subconsultants are planned, they should be included in the org chart with their role. h) Cost Proposal (Separate PDF)
Provide a listing of the firm’s estimated cost proposal to provide the scope of work outlined in the RFP, including estimated personnel hours and hourly billing rates. Include separate lines for each item, including an estimated budget for the two optional scope items.
The fee schedule is to help the City get an understanding of the firm's approach to providing the services and the total estimated cost.
Final contract price will be mutually negotiated between the City and consultant.
PROPOSAL SUBMITTAL*
Pass
Please upload one PDF of the proposal response which contains all items listed above except the cost proposal which will be uploaded separately.
Raftelis_Proposal.pdf
ESTIMATED COST PROPOSAL*
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EXHIBIT "A"
pg. 4 of 58
[RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT RFP No. TBD
CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY [RAFTELIS FINANCIAL CONSULTANTS, INC.] RESPONSE DOCUMENT REPORT Request For Proposal - CONSULTING SERVICES FOR WATER, SEWER, AND SOLID WASTE UTILITY RATE STUDY
Pass
Please upload a separate PDF that only contains the cost proposal. Note that the cost proposal should not be submitted with the overall proposal PDF above.
Raftelis_Cost_Proposal.pdf
ADDITIONAL INFORMATION (OPTIONAL)
For any additional information requested or required by any of your provided answers please upload that additional documentation here. Scoring will be based on the official proposal submitted above, but the City may take any additional information submitted here into consideration when reviewing the submitted proposal. This section is optional.
No response submitted
ACCEPTANCE OF STANDARD AGREEMENT*
Pass
Does your firm accept the City of Watsonville standard consultant agreement, including specifically the City's Hold Harmless Indemnity requirements and insurance coverage requirements, without modification? A copy of the current Consultant Agreement is included as Attachment A.
Yes
SUBMITTAL AUTHORIZATION*
Pass
By confirming here and submitting, Respondent confirms their authority (and has uploaded necessary documentation proving such) to submit this Response in its entirety as submitted and enter into a contract on behalf of the Company Name stated in said Response.
Such confirmation will be understood as the Respondent stating that they have completely read and understand this Request For Proposals in its entirety including any and all Addenda released prior to the time of submittal.
Confirmed
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EXHIBIT "A"
pg. 5 of 58
City of Watsonville
Consulting Services for Water, Sewer,
and Solid Waste Utility Rate Study
PROPOSAL / JUNE 20, 2025
Principal Contact: Jeremy Tamargo, Manager
611 Wilshire Blvd, Suite 900, Los Angeles, CA 90017
P: 951-376-4405 / F: 828-484-2442 / E: [email protected] Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
EXHIBIT "A"
pg. 6 of 58
www.raftelis.com
Table of
Contents
Cover Letter ............................................. 1 Statement of Understanding and
Methodology ............................................ 3 Experience with Comparable Utility
Enterprise Financial Analysis and Rate
Study....................................................... 14 Project Personnel and Organization
Chart ....................................................... 22 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.
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EXHIBIT "A"
pg. 7 of 58
RAFTELIS 1
611 Wilshire Blvd, Suite 900, Los Angeles, CA 90017
www.raftelis.com
COVER LETTER
June 20, 2025
City of Watsonville
250 Main Street
Watsonville, CA 95076
Subject: Proposal for Consulting Services for Water, Sewer, and Solid Waste Utility Rate Study To Whom it May Concern:
Municipal utilities across California are facing increasing financial pressures due to aging infrastructure, evolving regulatory requirements, and limited access to affordable funding. These challenges often result in rising costs for customers, particularly those who are economically vulnerable. To navigate these complexities, utilities require expert financial guidance to ensure long-term stability. Raftelis, with our extensive experience in financial planning, provides solutions that help municipalities manage these financial constraints while maintaining reliable services.
Also critical is ensuring that the City of Watsonville (City) grows public trust as it conducts these utility rate studies and implements new rates.
We believe that we can offer several advantages to the City to create a tailored financial strategy for water, sewer, and solid waste utilities. First, having conducted the 2020 Water, Sewer, and Solid Waste Utility Rate Study, Raftelis has developed utility rate models that can be leveraged to hit the ground running, maintain an efficient schedule, and reduce costs. Second, Raftelis maintains dedicated solid waste and communications practices in house. This ensures the City is provided with service from experts in their fields and that all three studies, as well as public outreach, can progress at a steady and relatively quick pace. Lastly, the proposed project team and our colleagues have significant experience in the region having conducted similar studies in Monterey and Santa Cruz counties including for Soquel Creek Water District, Marina Coast Water District, the City of Hollister, Monterey County Water Resources Agency, and Monterey Peninsula Water Management District. Just like our work with other agencies, our approach ensures that recommendations align with the City's specific service area needs. Instead of applying a standardized approach, Raftelis adapts our methodologies to fit the unique financial, operational, and regulatory challenges faced by the City of Watsonville.
As demonstrated in the previous study, Raftelis will customize our approach and model to meet your specific needs and objectives. For the upcoming study, we will focus on addressing the significant costs associated with regulatory compliance, such as SB 1383 (food waste separation), Hexavalent Chromium limits, lead line and crossconnection regulations, and future PFAS standards. Our expertise combines financial planning, rate structure analysis, and stakeholder engagement, ensuring that proposed solutions not only comply with evolving mandates but also support long-term sustainability. With a team of over 190 consultants, Raftelis brings technical and strategic communication capabilities that enable effective collaboration with City staff, officials, and ratepayers. Our holistic approach ensures that utility rates remain fair, equitable, and financially sound for the community.
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EXHIBIT "A"
pg. 8 of 58
RAFTELIS 2
611 Wilshire Blvd, Suite 900, Los Angeles, CA 90017
www.raftelis.com
Based on the scope of services requested by the City of Watsonville, we have assembled the following expert inhouse team to accomplish the City’s objectives:
• Kevin Kostiuk (based in the Santa Barbara, CA office) will serve as Project Director • Jeremy Tamargo (based in the Los Angeles, CA office) will serve as Project Manager • Morgan McCarthy (based remotely in KY) and Harold Mitchell (based remotely in TN) will serve as Solid Waste Leads
• Gina DePinto (based remotely in California) will serve as Public Outreach Services Lead • Technical and analytical support will be provided by staff consultants Lindsay Roth, Nicholas Kennedy (based in the Los Angeles, CA office) and Casey Goodwin (based remotely in California) We are eager to continue our partnership with the City of Watsonville and to demonstrate how Raftelis can continue to help you achieve your financial and rate study objectives. Please feel free to contact our proposed Project Manager, Jeremy Tamargo, at 951-376-4405 or [email protected] if you have any questions. Raftelis has no conflict of interest with regard to any other work performed by the firm for the City.
Sincerely,
Kevin Kostiuk Jeremy Tamargo
Senior Manager Manager
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EXHIBIT "A"
pg. 9 of 58
RAFTELIS 3
STATEMENT OF UNDERSTANDING AND METHODOLOGY
Project Understanding
The City of Watsonville is seeking an independent consultant to conduct a comprehensive utility rate study for its water, sewer, and solid waste services. This effort aims to evaluate the financial standing of each enterprise, including liabilities, reserve funds, and prior reserve usage, ensuring the City is prepared for emergencies while maintaining progress on its capital improvement program. The last study was completed in 2020 by Raftelis, and this new analysis will refine financial strategies to support long-term sustainability.
After evaluating the financial plan for each enterprise, a key component of the study is a cost-of-service analysis, which will assess potable and “blend” water, sewer transmission, wastewater treatment, recycled water production, and solid waste services. This analysis will ensure that costs are fairly distributed among ratepayers, as mandated by Proposition 218, and that rates cover essential expenses such as operations, maintenance, capital improvements, and overhead payments to the general fund. The study will distinguish between fixed and variable costs, providing a detailed framework for responsible financial planning.
To enhance system reliability, the City anticipates increased expenditures for operations, maintenance, engineering, and management. The selected consultant will incorporate these projected costs into the analysis while developing proposed utility rates for various services. Additionally, the consultant will evaluate and recommend updates to service connection fees (system development fees) for water and sewer. This study will provide a sustainable financial model that ensures the continued delivery of reliable, cost-effective utility services for all three utilities while complying with state regulations and Proposition 218.
Project Approach
We have developed the following proposed services based on our extensive experience in completing comprehensive water, wastewater, and gas rate studies for other utilities while taking into account the considerations identified by the City of Watsonville in its Request for Proposals (RFP). The approach has been tailored to address the specific objectives and concerns identified in the RFP while maintaining those elements that we believe are essential for a successful project. We have used a similar project approach on many of our rate study projects for utilities throughout the State of California and the United States.
Task 1: Project Initiation and Management
We believe that the execution of a productive kick-off meeting is the most effective way to begin a project of this nature. The goals for this meeting include:
• Providing a forum to finalize the scope of the project, work plan, and schedule with City staff • Discussing the City’s preliminary pricing objectives
• Ensuring that we have an understanding of the overall goals of the study • Providing an opportunity for City staff to meet and become comfortable with the project staff from Raftelis • Reviewing the data needs for the project
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EXHIBIT "A"
pg. 10 of 58
RAFTELIS 4
Accomplishing these objectives will help to ensure that the project progresses as smoothly as possible.
Prior to the kick-off meeting, we will prepare a detailed data request list that will identify the information needed to complete the various analyses. Information that is typically required to perform a comprehensive cost-of-service study includes recent Annual Comprehensive Financial Reports (ACFR), recent and current utility budgets, a description of service areas, current and historical billing data, utility plant in service records, debt service schedules, water, wastewater, and gas master plans, and a long-term capital improvement plan. Some of this information will be readily available, whereas other components may require more detailed analyses of operational data, customer billing information, and costs. We will also prepare a comparison of the City’s existing utility rates to comparable peers as a basis for discussion during the kick-off meeting to review the City’s existing rates and determine if additional types of fees may be appropriate to be analyzed and considered for use by the City’s utilities.
The completion of this task is contingent upon the timely receipt of the requested information and in the format requested. We will incorporate one set of information into our analysis. This initial set of information will serve as the basis of our analysis and our model and report deliverables. If you provide subsequent updated information during the course of our work that necessitates updates to our analysis, these revisions will be subject to additional costs. The additional costs will be determined based on the extent of the required changes to the analysis and will be discussed and agreed upon prior to commencing the required updates and revisions.
Data Collection and Review
As part of this task, we will conduct interviews with City staff to obtain a thorough understanding of the financial, operational, regulatory, master planning, and political environments. Existing rate policies and ordinances will be reviewed for consistency with current and possible future fees. Key issues, areas of concern, and pricing objectives will be reviewed and discussed. Historical information will be reviewed related to costs, customers, usage, demand patterns, capital spending, plant in service, and revenues generated to provide a better understanding of recent changes in operating characteristics and to develop appropriate trends and growth factors for creating financial forecasts. Other information reviewed will include regulatory requirements, bond covenants, contractual requirements, and capital plans for each utility. During the data collection and review, we will begin to identify assumptions used to allocate and project costs that will be integrated into our model. As these assumptions are identified, City staff will have an opportunity to review our findings to ensure that the assumptions make sense with regard to each of the City’s utility systems.
Project Management
In order to successfully complete the project, Raftelis will be in constant communication with City staff regarding data requests, data validation, data decisions, and reviewing preliminary and final results. Much of this can be accomplished through conference calls, emails, and demonstrations using tools such as Microsoft Teams or GoToMeeting. These efforts provide for consistent and competent project management to ensure that all deadlines and objectives are met in a timely and efficient manner. We believe in a no-surprises approach so that the City is always aware of the project status.
PLANNED MEETINGS:
• Virtual meeting (1) for study kick-off
DELIVERABLES:
• Data request list
• Agenda for kick-off meeting
• Documentation summarizing the kick-off meeting
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EXHIBIT "A"
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RAFTELIS 5
Task 2: User Demand and Revenue Requirements Analysis
Projecting future service demand and developing realistic per capita demand for service estimates is one of the single most difficult tasks that a utility faces each year. The reason for this is that there are several unforeseeable factors that can affect user demand. A particularly rainy or dry season, unforeseen population growth or decline, and commercial customers moving in and out of City’s service area or not returning after the pandemic can and will have a dramatic effect on user demand. However, projecting user demand for services is also one of the most important tasks that a utility faces. These projections directly affect user rates, which, in turn, determine how much cash a utility will collect. If a utility overestimates demand for services, then rates will be too low leading to revenue under recovery, a deficit, and decreasing fund balances. Yet, if a utility underestimates demand for services, then revenue over recovery occurs and this can be met with public scrutiny because of unjustly high rates.
Comprehensive operation and customer billing information will be collected to classify customers and project user demand over the planning period. We will study available historical demand of the City’s different customer types in order to arrive at a corresponding usage and growth rate for each type. As a result of these analyses, Raftelis will be able to develop projections of consumption for the forecast period under various scenarios, resulting in an optimistic projection, pessimistic projection, and most likely projection. Raftelis will also examine the City’s current customer classifications and identify any changes that may be necessary to make them more consistent with current industry practices and standards. Raftelis will then calculate the revenues under current rates at projected user demand levels (optimistic, pessimistic, and most likely) to understand the potential revenues realizable. We will then compare these revenues to the revenue requirements forecast in the financial plan developed in Task 3 to understand the magnitude of the potential shortfall under the current rates.
PLANNED MEETINGS:
• Virtual meeting (1) to review draft user demand projections for water, sewer and solid waste utilities DELIVERABLES:
• Forecast of user demand and revenues under existing rates over multi-year forecast period for water, sewer and solid waste utilities
Task 3: Development of Financial Plans
An important element in conducting a comprehensive rate study is to establish comprehensive short- and long-term financial plans for the City’s utilities. In preparing these plans, we will analyze the City’s current policies and practices for funding its operations, capital facilities plans, and debt service requirements. As appropriate, and as discussed 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 as well as prudent reserves • Meet the City’s service policies and objectives
• Fairly distribute financing responsibility to appropriate users • Result in an appropriate capital structure so that the City maintains a high rating with bond rating agencies Maintaining detailed financial plans will ensure that City’s utilities are operating in a revenue self-sufficient manner and meet debt covenant requirements. We will develop separate financial plans for the water, wastewater, and gas utilities to understand if any of the utilities may be subsidized by the others.
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EXHIBIT "A"
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RAFTELIS 6
The financial plans for each utility will include a capital improvement financing component that ensures each utility can fully finance the City’s proposed capital improvement program while minimizing impacts to existing ratepayers and complying with existing revenue bond covenants.
Review and Evaluate Current Financial Information and Recommend Financial Policies and Programs
As part of this task, Raftelis will evaluate the City’s operating and capital reserve requirements as well as financial and rate policies and recommend appropriate changes to the existing policies that will allow the utilities to most effectively meet their financial goals. These financial policy requirements will include identifying appropriate target reserve levels for the operating and capital programs; when these reserves can be used; infrastructure replacement funding from operations; debt funding of Capital Improvement Program (CIP), if needed; review of the level of transfers to the general fund; and debt service coverage designed to allow the City to meet its financial objectives and goals while achieving improved rate stability and revenue sufficiency. Raftelis will also provide recommendations on how the City may wish to fund operating and maintenance (O&M) expenses that do not occur annually, such as tank painting and meter replacement.
Develop Revenue Requirements
This task will include the projection of budget items, such as annual costs related to labor, power, materials, capital expenditures, plant investment, O&M expenses, transfers, reserve contributions, and debt service coverage using assumptions based on different economic factors and growth trends.
We will develop forecasts of revenue requirements over the multi-year planning period. Revenue requirements will be projected over the rate-setting period based on historical results, the current budget, capital improvement plans, master planning studies, existing debt service, other obligations, and current economic trends. We will examine the effect of variations in factors that impact the utility’s revenue requirements and provide comparisons of potential revenue requirement scenarios for review with the City to identify the most appropriate revenue requirements for proposed rates. Projecting revenue adjustments over a multi-year planning horizon can illustrate future rate impacts and potential challenges to the City’s 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.
Develop Multi-year Cash Flow Analysis and Recommend Reserve Balances We will develop a multi-year cash flow analysis to determine the revenue adjustments needed to meet projected revenue requirements for the multi-year planning period while minimizing sharp rate fluctuations. 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. The level of the transfers will be considered and compared to industry standards as well as considered based on regulatory guidelines. We will also review the reserve policies to recommend appropriate reserve balances consistent with industry standards and the City’s desire to appropriately address risk associated with various factors, including emergency expenditures or revenue shortfalls.
PLANNED MEETINGS:
• Virtual meetings (3) to review multi-year financial plans for water, sewer and solid waste utilities DELIVERABLES:
• Multi-year financial plans for water, sewer and solid waste utilities Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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Task 4: Cost-of-service Analysis and Rate Calculation
Although we take care to tailor a utility’s cost-of-service analysis to meet the needs of the individual utility, we always make sure to follow the basic premise of cost-of-service allocations set forth by state and local laws, the American Water Works Association’s (AWWA) Manual M1, Principles of Water Rates, Fees, and Charges, the Water Environment Federation’s (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems, and other authoritative bodies.
The first step of a cost-of-service analysis is to complete a cost functionalization to allocate costs to the various functions within the utility. For example, in the water utility, these categories may include source of supply, treatment plant, transmission, and distribution. The next step is the classification of costs based on cost-causative parameters. In water, these parameters would be average day demand, maximum day demand, maximum hour demand, meters, and customer service. Finally, the cost of serving each customer class will be determined based on each class’ usage characteristics. Raftelis will discuss with the City whether this task and allocation analysis is necessary for each utility.
Rate Calculation
After the revenue requirements have been functionalized, classified, and allocated, we will use the user demand analysis performed in Task 2 and combine it with the new revenue requirements to calculate user rates reflecting the City’s specific rate goals and objectives. In identifying these goals and objectives, Raftelis will evaluate the City’s current rate structures and discuss how they compare to industry standards. At this point, we will discuss and evaluate the need for new customer classes, such as senior citizen or irrigation/sprinkler rates. Raftelis has worked with many customers to evaluate existing and new customer classes. This evaluation will be based on existing data and the needs of the City.
We will project these rates for the forecast period to ensure that all covenant requirements are met and to ensure that customer impacts of rate increases do not lead to rate shock. At the end of this task, we will conduct a meeting with City staff. At this meeting, Raftelis will review the entire cost-of-service and rate-setting process and present preliminary rates. Prior to the meeting, City staff will be provided with the draft rate model and preliminary rates so that they will be able to review our methodology and suggest changes. We will discuss all suggested changes and then work with the City to come up with our final rate recommendations to incorporate into the City’s rate ordinances.
Comparison of Costs by Customer Class
Based on the rate structures identified in this task, we will develop a comparison of the cost of service to rate recovery under the new rates as well as existing rates. This will allow the City to understand any inequities in the existing rate structure as well as how any proposed changes to the rate structure addresses those inequities.
PLANNED MEETINGS:
• Virtual meetings (3) with City staff to review costs by customer classes and resulting rates for water, sewer and solid waste utilities
DELIVERABLES:
• Costs by customer classes as well as preliminary and final rate recommendations for water, sewer and solid waste utilities
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Task 5: Rate Model Development
At the heart of any successful cost-of-service and rate study is the computer model that is used to develop revenue requirements; perform cost functionalization, classification, and allocation; and calculate rates. The model must be sophisticated enough to perform the complex calculations involved in a comprehensive cost-of-service and rate analysis and yet still be simple enough to allow for future updates by City staff.
The model will incorporate the rate structures and rate calculation methodologies that are identified during Task 4.
During the course of the project, City staff will be provided with working copies of rate model drafts in Microsoft Excel so that they will be able to provide input into the development of the model. Once the project is complete, the City will be provided with fully functioning copies of the model and Raftelis personnel will train members of the City staff in its use.
PLANNED MEETINGS:
• Virtual meeting (1) to train City staff on the use of the rate model for water, sewer and solid waste utilities DELIVERABLES:
• Functional rate model for the City’s future use for water, sewer and solid waste utilities Task 6: Reports
Rate Comparison
Raftelis will prepare a comparative analysis of the City’s current and proposed water, wastewater, and solid waste rates to comparable peer utilities. This comparison will be used in the reports and presentations of the findings of the study to provide a frame of reference for stakeholders and decision makers.
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.
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Draft Report
The draft report will document the rate development process, describe any recommended changes to the existing rate structures and the reason for such changes, and present the results of the cost-of-service and rate study. An electronic copy of the draft report will be presented to City staff for their review and comment.
Our fee estimate assumes the preparation and delivery of a draft report, and a final report. The City will provide one consolidated set of comments after the delivery of the draft report. We will consider and address these comments in the final report. Any additional review comment cycles beyond the one included in this scope will be subject to additional costs, which will be determined based on the extent of the revisions required. Additional services, such as further revisions or additional deliverables, will be discussed and agreed upon separately.
Final Report
Raftelis will incorporate the City staff’s comments of the draft report into a final report. Upon finalization of the report, the City will be provided an electronic copy of the report. In addition to the final report, the City will also be provided with electronic copies of the final rate model in Microsoft Excel. Raftelis will also deliver a model training workshop for City staff.
PLANNED MEETINGS:
• Virtual meeting (1) to review draft report with City staff DELIVERABLES:
• Rate comparison
• Draft report
• Final report
Task 7: Presentations
Presentations
We will prepare a PowerPoint presentation summarizing the rate study process, findings, and recommendations in a clear and concise manner. We will provide a draft of this presentation to City staff for their review and comment prior to delivering the final version. Our fee estimate assumes the preparation and delivery of one draft of the presentation. The City will provide one consolidated set of comments after the delivery of the draft and the project team will consider and address these comments in the final presentation. Any additional review comment cycles beyond the one included in this scope will be subject to additional costs, which will be determined based on the extent of the revisions required and will be discussed and agreed upon separately.
Raftelis will also present our findings using this presentation and other outreach materials at a public hearing as well as at a maximum of two other meetings at the City’s direction.
PLANNED MEETINGS:
• Up to three (3) on-site presentations as directed by the City, including the Public Hearing DELIVERABLES:
• PowerPoint presentations (draft and final)
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Task 8: Public Outreach and Proposition 218 Assistance
Finding opportunities to communicate the work you do, and the value the City’s utility services bring can be complicated, made even more complex with an ever-evolving communication landscape. With a team of senior communications and outreach professionals, we would be honored to support the execution of outreach and engagement strategies for the rate study. We speak your language and have an in-depth understanding of the factors and objectives that are critical for municipal utility organizations to effectively communicate with their customers and other community stakeholders. We envision our work with you as an extension of your own team. Working closely with our financial consulting team, we’ll bring insight, strategy, and expertise that can flex with your needs.
Strategic communication increases community acceptance of rate changes, enhances credibility with stakeholders and policymakers, and builds awareness of the value of the services and the need for utility investments on behalf of the community. As the Raftelis communications lead for this rate study, Gina DePinto, APR (Accredited in Public Relations), has 35 years of strategic communications experience including 25 years within city, county, and water agencies. Gina also holds certificates in public participation from the International Association for Public Participation (IAP2). Our full range of communication services include strategic communication planning, public involvement / community outreach, public meeting facilitation, graphic design and marketing materials, risk and crisis communication, spokesperson media training, social media strategy, and technical writing and content development.
Task 8.1: Community Engagement Sessions
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 recommendations.
Raftelis can facilitate public outreach sessions, open houses, workshops and webinars to inform customers and communities about the need to adjust rates. This engagement would be separate from publicly noticed City Council meetings, workshops, and hearings.
We recommend a public meeting process that can be highly collaborative and iterative; the feedback we receive from key stakeholders in these meetings can help guide the overall direction of the study and inform the methodologies and options ultimately selected for the final rate fee proposal. Raftelis will provide guidance and oversight of outreach activities, and work with City staff to secure locations, promote the event, design and facilitate the content, and develop summary reports for staff and the community. If interpretation services are needed, we can assist the City in identifying suitable and certified language service providers.
PLANNED MEETINGS:
• Up to 3 community engagement meetings (in person, virtual webinars, open houses, etc.) • Virtual planning and logistics meetings
DELIVERABLES:
• Meeting/event logistics; presentation materials, display posters, fliers, surveys, social media content, etc. • Reports documenting public input and feedback; feedback to continually inform FAQs • Field customer emails and phone calls regarding proposed rates and fees Task 8.2: Develop Public Outreach Materials
Key messages developed as part of the strategic communications framework come to life when woven together into powerful communications pieces by Raftelis’ strategic communicators and professional graphic designers. Visual representation of proposed changes in an easy-to-understand and accessible format significantly improves Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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understanding of rate structure changes that may impact customer bills. Raftelis will develop a suite of communications pieces to assist with communicating rate and rate structure changes. Materials typically include a mix of the following: website copy and graphics, fact sheets, talking points/FAQs, bill stuffers, on-bill messaging, social media posts and graphics, “explainer” videos, presentation slide decks with speaker scripts, etc.
DELIVERABLES:
• Develop presentation PPT decks with edits as meeting content evolves and changes • FAQs for communicating with the City Council and general public • Key messages and talking points about the rate study process, need for rates revenues, and how rate revenues are invested
• Content for the website, e-blasts, newsletters, and on-bill messaging • Press releases (up to three)
• Social media content
• 2-minute animated explainer video about legal rate setting in City branding Task 8.3: Develop Proposition 218 Notice
While requirements of Proposition 218 notifications are easy to satisfy, too many municipalities and utility districts miss the opportunity to strategically educate and inform ratepayers. Over the years, Raftelis has designed countless Proposition 218 notifications that go beyond the minimum dictated by statute to deliver visually appealing pieces that customers want to read.
Content will include all statutorily required elements, along with strategic communications messages to ensure it properly communicates the need and justification for rate increases and the public is given tools to understand the impacts to their individual bills. Beyond satisfying legal requirements, the goal of the Notice will be to describe any relevant public process that went into the recommendations and make the case for why adoption is critical.
Once the content passes the City’s legal review, Raftelis' will match the City’s established brand guidelines and flow the content into an attractive design that will encourage your customers to read the information and have a broader understanding of the issues. Our pricing includes the development of a print-ready PDF in two languages, excluding the cost of translation. If the City does not have access to the services of a certified translator, Raftelis can recommend and coordinate translation.
Mailing Coordination
It is anticipated that City staff will liaise with the printer and mail house, and contract directly with them for payment. If desired, Raftelis can provide liaison services at our standard hourly rates. The notice must be postmarked to all affected property owners in the City’s service area no less than 45 days prior to the public hearing to adopt rates.
PLANNED MEETINGS:
• Virtual meetings (2) to review development process, timelines, and content with City staff DELIVERABLES:
• Draft notification language for legal counsel’s review/approval • Designed notification with two rounds of revisions and a final print-ready PDF in English and one other language.
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Task 9: Capacity Fee Study
Approach
We will discuss the different capacity fee methods (also known as “system development charges” or “connection fees”) and provide a capacity fee data request. We will then review all relevant documentation, including the engineering master plans. We will discuss the appropriate methodology to use. There are three industry-standard methods for the calculation of capacity fees:
The capacity fees we develop will be based on industry practices and informed by California Government Code Sections 66000-66025 which include the California’s Mitigation Fee Act and general legal principles related to impact fees. Under California law, “fees,” as opposed to “taxes,” can be adopted without the two-thirds vote of the public as required by Proposition 13. The State of California Mitigation Fee Act, also known as AB 1600 and codified in Sections 66000-66025 of the California Government Code, establishes a requirement for “nexus” in the establishment of a development fee. The nexus requirements are that: 1) a development fee is directly related to the impacts of the development and 2) the fee is roughly proportional to the impacts of the project.
Methodology
Raftelis will discuss the capacity fee calculation methodologies (mentioned above) and will work with City staff to determine the appropriate methodology (i.e., Buy-In, Incremental, Hybrid). Generally speaking, the Buy-in is usually the simplest and most common. If the City has a large capital plan for the water and/or sewer utilities, it may consider the Incremental or the Hybrid approach methodology.
PLANNED MEETINGS:
• One virtual meeting with City staff, if needed
Buy-In Method
The buy-in approach is most suitable when the current utility system has excess capacity to accommodate growth. It is also the most common methodology. The buy-in approach rests on the premise that new customers are entitled to service at the same “price or cost” as existing customers. However, existing customers have already developed the facilities that will serve new customers, including the costs associated with financing those services. Under the buy-in approach, new customers pay an amount equal to the net investment (accounting for depreciation) already made by existing customers, based on the value of the utility. The value is normally established using the cost approach of replacement cost less depreciation. There are two variations of the buy-in approach: the system buy-in and the equity buy-in. For the system buy-in, the system value is divided by the ultimate system demand to determine the proposed capacity fee. For the equity buy-in, the system value is divided by the current demand.
Incremental Method
The incremental method is a forward-looking calculation and can be used when substantial new investment in capital facilities is required to serve new customers. Stated simply, it is the value of the new facilities divided by the total capacity of the new facilities.
Hybrid Method
A hybrid approach can be used when new customers will use both current excess capacity in existing facilities and new facilities. Mathematically, it is the weighted average of the buy-in method and the incremental method.
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DELIVERABLES:
• Recommendations for water and sewer capacity fees
• Water and Sewer Capacity Fee Report, if the City requests a separate, stand-alone report for the capacity fee study
Optional Services
As requested in the RFP, Raftelis is providing an estimated budget for the two optional scope items described below:
Freedom County Sanitation District Transfer
The City has been approached by Freedom County Sanitation District to explore the possibility of transferring the district fully into the City's sewer collection service area. The City would like to evaluate the financial impacts this may have on the cost of service for the sewer fund and how it may affect sewer rate increases for the City's existing customers.
Citywide Stormwater Utility Analysis
The City is considering developing a Citywide stormwater utility and may be interested in a detailed analysis of the potential structure of a new enterprise fund, a technical analysis of how reasonable and sustainable rates could be assessed consistent with Proposition 218. The analysis would be specific to the City and not a general description of the process. The scope may also potentially include a public outreach and analysis component to determine the benefits and concerns the City's constituents may have with the establishment of a new utility.
Workload and Availability
With the depth of more than 190 consulting professionals, and specifically the current and anticipated workload of the individuals assigned to this project, we have the availability to provide the requested services in a timely and efficient manner to meet the scheduling requirements and objectives of the City. As a rule, Raftelis operates at a company-wide project utilization of approximately 65% to 75%. This level of utilization, which we expect to continue through the proposed timeline of this project, will provide the project team with ample time to allocate to the City’s engagement.
Raftelis actively manages the distribution of our staff hours to ensure we allocate the necessary resources to meet the needs of each of our clients. Raftelis’ executive and management team participate in a weekly conference call to review the number of consulting hours required to meet the needs of our clients during the upcoming week. This weekly meeting allows our project managers to deploy our consulting staff in a flexible manner that ensures a suitable level of hours will be devoted to each client.
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EXPERIENCE WITH COMPARABLE UTILITY ENTERPRISE FINANCIAL ANALYSIS AND RATE STUDY 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 700 organizations in the last year alone.
We believe that Raftelis is the right fit for this project. We provide several key factors that will benefit the City 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 190 consultants, Raftelis has the largest water-industry 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 coauthored 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 1,700+ utilities throughout the U.S. with financial and rate consulting services with wideranging needs and objectives, which includes over 350 utilities and local governments in California. 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 220. 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.
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OUR TEAM INCLUDES
190+ consultants focused on
finance/management/communication/
technology for the public sector
2 members of
AWWA and WEF utility finance and
management committees and subcommittees
chairs
& 16
RAFTELIS HAS PROVIDED ASSISTANCE FOR
1,700+ public agencies
and utilities
25%of the
U.S. population
that serve more than
41of the nation’s
50 largest cities
including the agencies serving
1,300+ projects
for
in the past year alone, we worked on
700+ agencies
in 47 states
32 How we stack up years
serving the
public sector
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Experience
RAFTELIS HAS THE MOST EXPERIENCED UTILITY FINANCIAL AND MANAGEMENT CONSULTING PRACTICE IN THE NATION.
Our staff has assisted more than 1,700 local government 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 1,300 financial, organizational, and/or technology consulting projects for over 700 agencies in 47 states, the District of Columbia, and Canada. Below, 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.
Goleta West Sanitary District CA
Client Reference: Brian McCarthy, General Manager/Superintendent UCSB Campus Lot 32, Santa Barbara, CA 93106 / P: 805.968.2617 / E: [email protected] Raftelis Project Manager: Sudhir Pardiwala / P: 626.583.1894 The Goleta West Sanitary District (District) retained Raftelis to assist the District in financial planning to assure the District’s financial stability and to review the District’s treatment plant options, current annexation, connection, and miscellaneous fees consistent with the District’s costs of providing service. The goal of the study was to evaluate the four feasible alternatives to upgrade the wastewater treatment plant to determine the most economical alternative and the rate impacts, considering the District’s current and projected capital improvement plan (CIP) and the
RAFTELIS HAS PROVIDED FINANCIAL/
ORGANIZATIONAL/TECHNOLOGY ASSISTANCE
TO UTILITIES SERVING MORE THAN
25% OF THE U.S. POPULATION.
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operations and maintenance (O&M) expenses. Raftelis also reviewed and updated the District’s current annexation, connection, and miscellaneous fees to be more consistent with the District’s costs of providing each service.
Miscellaneous fees included development of industrial waste pretreatment charges for different classes of users along with other miscellaneous fees. Raftelis prepared the tax roll for the District to bill customers. Raftelis has been assisting the District with its financial planning and rates for more than 11 years and continues to serve the District.
City of Atwater CA
Client Reference: Justin Vinson, Public Works Director
750 Bellevue Road, Atwater, CA 95301 / P: 209.777.0273 / E: [email protected] Raftelis Project Manager: Theresa Jurotich / P: 206.707.9155 Raftelis has been providing rate consulting services to the City of Atwater (City) since 2010. Most recently, Raftelis is conducting a water, wastewater, and connection fee study that incorporates developing a financial plan for each enterprise, conducting a cost-of-service analysis, and rate design. The sewer enterprise has debt coverage requirements that are partially driving the need for revenue adjustments. Additionally, since Atwater is still converting all customers to meters, the study was paused to collect a full 12 months of billing data for water customers to inform the updated cost-of-service and meter-based rate structure. However, since debt coverage requirements are a driver for revenue adjustments for the sewer enterprise, the sewer study has restarted before all customers have been metered. Results of a recent cost allocation study will be incorporated. Raftelis is also developing updated wastewater connection fees, which have not been updated since the 1990s.
City of Ventura CA
Client Reference: Gina Dorrington, General Manager
336 Sanjon Road, Ventura, CA 93002 / P: 805.677.4131 / E: [email protected] Raftelis Project Manager: Kevin Kostiuk / P: 213.262.9309 Since 2020, Raftelis has provided 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 as well as to put at least 50 percent of effluent to beneficial use. These requirements, coupled with aging infrastructure, increasing operational costs, and declining water demands all factor into the most recent rate study.
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 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. Through a collaborative process, buy-in was achieved for a recommendation providing five years of rates, revised rate structures, and reasonable cost allocations between the City’s utility enterprise funds. The recommended rates were implemented in July of 2021.
Since the prior rate study Raftelis has provided annual financial support to Ventura Water to routinely assess the adopted rates and to keep the financial plans up to date based on new costs of the IPR project. The project has increased in scope, timing, and costs and Raftelis has worked with staff, the City’s Municipal Advisors, the City Attorneys’ office, and the Water Commission to model changes and alternatives. To aid the effort the model Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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includes a specific module dedicated to the IPR project and component projects to understand the flow of funds based on a series of instruments including grants, cash, WIFIA loans, SRF loans, and revenue bond issues. The model has the functionality to look at advanced debt repayment options including capitalizing interest, deferring principal repayment, and modifying other terms. This work is ongoing and part of the current rate study scheduled to complete in December 2025.
City of Redlands CA
Client Reference: Ross Wittman, Senior Project Manager
35 Cajon Street, Redland, CA 92373 / P: 909.346.7487 / E: [email protected] Raftelis Project Manager: Sudhir Pardiwala / P: 626.583.1894 Raftelis has a history of working for Redlands. We have been working with the City of Redlands (City) to update rates every two years since 2000. We did their most recent update in 2024. The City charges separate fees for water source acquisition and facilities. The water source acquisition fees are based on the costs of purchasing water rights.
Raftelis assisted the City with the development of the water acquisition fees and facilities fees. The capacity fee calculation involved a review of the existing assets and future CIP that would benefit both existing and future customers. The calculated fee was based on a hybrid methodology including existing and future facilities. Water source acquisition fees to provide water supply were computed separately. Fees for the non-potable system, including recycled water, were calculated to recover costs and provide incentives to users. Raftelis completed a water and wastewater rate study for the City to review their rate structure in light of Proposition 218 requirements.
The goal was to develop rates that adhere to cost of service and pay for necessary capital improvements. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, review of the City’s user classification, a cost-of-service analysis, and rate design for City users. We assisted the City with a review of their billing system to compile data needed for this study. The study was conducted with input from a 12-member Utility Advisory Committee. Over a dozen workshops with the Committee were conducted to explain concepts, gather feedback from Committee members, and to discuss the overall findings of the study. Raftelis surveyed neighboring utilities to benchmark rates.
City of Lincoln CA
Client Reference: Angela Frost, Environmental Services Manager 600 Sixth Street, Lincoln, CA 95648 / P: 916.434.2452 ext 1302 / E: [email protected] Raftelis Project Manager: Theresa Jurotich / P: 206.707.9155 Raftelis completed a water, wastewater, and solid waste rate study encompassing a 10-year financial plan, cost-ofservice analysis and recommend rates. The City of Lincoln’s (City) operating reserves are depleted and plans to cash-finance capital projects. Raftelis worked closely with city staff to develop water, wastewater, and solid waste financial plans that aim to bring the enterprises back to self-sufficiency. Two-to-three financial plans for each enterprise were developed along with associated cost-of-service based rates. Wastewater presented a unique challenge given that the city went from providing both treatment and collection to collection-only but still needed significant revenue adjustments to become self-sufficient. Raftelis worked closely with City staff to develop financial options for the Board. The various financial plans and associated rates were presented to the Board for its consideration. 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. Raftelis also supported several community outreach meetings and designed the Proposition 218 notice.
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Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Alameda County Water District
Anaheim, City of
Arroyo Grande, City of
Atwater, City of
Bakersfield, City of
Benicia, City of
Beverly Hills, City of
Borrego Water District
Brea, City of
Brentwood (CA), City of
CAL FIRE/San Luis Obispo
Calleguas Municipal Water District
Camarillo, City of
Carlsbad Municipal Water District
Casitas Municipal Water District
Castaic Lake Water Agency
Central Basin Municipal Water District
Central Contra Costa Sanitary District
Channel Islands Beach Community Services
District
Chino Hills, City of
Chino, City of
Chowchilla, City of
Corona, City of
County of San Diego
Crescenta Valley Water District
Cucamonga Valley Water District
Del Mar Union School District
Delta Diablo Sanitation District
East Bay Municipal Utility District
East Orange County Water District
East Valley Water District
Eastern Municipal Water District
El Toro Water District
Elk Grove Water District
Elsinore Valley Municipal Water District
Escondido, City of
Galt, City of
Glendora, City of
Goleta Water District
Goleta West Sanitary District
Helix Water District
Henderson, City of
Hollister, City of
Holtville, City of
Huntington Beach, City of
Imperial County
Inland Empire Utilities Agency
CALIFORNIA
EXPERIENCE
This table lists the California
utilities that Raftelis has assisted
over the past five years on
financial, rate, and/or management
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Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Irvine Unified School District
Jurupa Community Services District
Kern County Water Agency
La Canada Irrigation District
La Habra Heights County Water District
Laguna Beach, City of
Lake Valley Fire Protection District
Las Virgenes Municipal Water District
Leucadia Wastewater District
Livermore, City of
Long Beach City of
Los Alamos Community Services District
Los Angeles Department of Water and Power
Los Angeles, City of Bureau of Sanitation
Madera, City of
Mammoth Community Water District
Marin Municipal Water District
Merced, City of
Mesa Water District
Metropolitan Water District of Southern
California
Modesto Irrigation District
Mojave Water Agency
Monterey County Water Resources Agency
Monterey, City of
Moulton Niguel Water District
Municipal Water District of Orange County
Napa Sanitation District
Ojai Valley Sanitary District
Olivenhain Municipal Water District
Ontario Municipal Utilities Company
Ontario, City of
Orange, City of
Palo Alto, City of
Phelan Pinon Hills Community Services District Placer County Water Agency
Pleasant Hill Recreation & Park District
Pomona, City of
Rainbow Municipal Water District
Ramona Municipal Water District
Rancho California Water District
Redlands, City of
Rincon del Diablo Municipal Water District
Riverside Public Utilities
Roseville, City of
Sacramento Regional County Sanitation
District
Sacramento, City of
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Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Salton Community Services District
San Bernardino Valley Municipal Water District
San Bernardino, County of
San Clemente, City of
San Diego, City of Public Utilities Department San Dieguito Water District
San Elijo Joint Powers Authority
San Gabriel County Water District
San Gabriel, City of
San Jose, City of
San Juan Capistrano, City of
Santa Ana, City of
Santa Barbara, City of
Santa Clara Valley Water District
Santa Clarita Water District
Santa Cruz, City of
Santa Fe Irrigation District
Santa Fe Springs, City of
Santa Margarita Water District
Santa Rosa, City Attorney’s Office
Scotts Valley Water District
Shafter, City of
Shasta Lake, City of
Sierra Madre, City of
Signal Hill, City of
Simi Valley, City of
Sonoma, City of
South Mesa Water Company
South Pasadena, City of
South San Francisco, City of
Sunnyslope County Water District
Sweetwater Authority
Temescal Valley Water District
Thousand Oaks, City of
Torrance, City of
Trabuco Canyon Water District
Triunfo Sanitation District
Tustin, City of
Union Sanitary District
Ventura Regional Sanitation District
Ventura, City of
Vista, City of
Walnut Valley Water District
Watsonville, City of
West Basin Municipal Water District
Western Municipal Water District
Yorba Linda Water District
Zone 7 Water Agency
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PROJECT PERSONNEL
Kevin Kostiuk
PROJECT DIRECTOR
Senior Manager
ROLE
Kevin 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
Kevin has a background in environmental economics and policy 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 past member of the American Water Works Association (AWWA) Young Professionals (YP). He has authored articles 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 Calfiornia State-wide drought of 2012-2017; and an article on proactive financial planning in times of drought for California Society of Municipal Finance Officers (CSMFO) Magazine. Kevin has presented an evaluation of the conceptual CustomerSelect rate model for Soquel Creek Water District at the AWWA Utility Management Conference.
KEY PROJECT EXPERIENCE
Goleta Water District (CA): Water Cost-of-Service Study 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, interruptible 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): Water and Sewer Financial Plan Study 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.
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: Senior Manager (2023-
present); Manager (2020-2022);
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)
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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 Hayward (CA): Water Rate Structures, Financial Planning, and Water Cost-of-Service Raftelis assisted the City with reviewing water rate structures, financial planning, and water cost-of-service. The City serves an urban retail base with very low per capita demands and has a relatively large share of low-income customers. Raftelis assisted the City of Hayward (City) with a comprehensive water cost-of-service and rate study in 2021. Kevin served as the project manager for this engagement, which involved developing a 10-year financial plan, a two-year rate proposal, a water rate model, and a technical report (or administrative record). The City receives 100% of its water supply from the San Francisco Public Utilities Commission (SFPUC); the increasing costs of purchasing water from SFPUC is often unpredictable. The key drivers in the financial plan included developing a reserve policy which mitigated the risk of volatile SFPUC costs and minimizing the financial impact to customers to the greatest extent possible. Additionally, Raftelis recommended a simplified rate structure based on a detailed costof-service allocation. The proposed rate structure helped improve equity among customer classes, provided affordability for low water users, and enhanced customer understanding. The water rates were successfully approved and implemented by City Council.
City of Calistoga (CA): Water and wastewater cost-of-service and rate study Kevin served as project manager and completed a water and wastewater cost-of-service and rate study for the City of Calistoga (City) in 2023. Comprehensive ten-year financial plans were developed for each enterprise. Kevin provided three distinct scenarios for revenue increases for each utility as well as three alternative tiered rate structures for all customer classes in the water rate study. For the wastewater enterprise, a comprehensive cost of service analysis was performed to fairly apportion costs to residential and non-residential users, including specialized classes for the City’s geothermal spa dischargers, industrial bottling works, and recycled water customers.
Water rate calculations entailed blended supply rates for different sources of water and class-specific cost allocations. Kevin developed three alternative drought rate structures for the City’s evaluation. Additional tasks included a regional water and wastewater rate survey to benchmark the updated rates against neighboring agencies and developed bill impacts for each class of rates, as well as a calculation for combined bill impacts for customers with both water and wastewater connections. Public outreach efforts included presentation of the resulting rate structures to both City Council and in two community open houses and the development of the rate notice to customers. Five years of rate increases were adopted in December 2023 and implemented March 2024.
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Crescenta Valley Water District (CA): Water and Sewer Financial Plan and Rate Study 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): Budget-Based Water Rate Study 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 budgetbased water rates for their 23,000 accounts including residential, commercial and irrigation customers. The study included 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.
City of Camarillo (CA): Rate Consulting Services
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 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.
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City of Tustin (CA): Financial Plan Study
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): Water System Evaluation, Cost Allocation Study 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-ofservice 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): Financial Plan Study; Cost-of-Service Study 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 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 are scheduled for adoption in Summer 2019. The cost-of-service study is ongoing.
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Borrego Water District (CA): Water Rate Study
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): Financial Plan Study 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): Financial Plan and Rate Study 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 of 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): Cost-of-Service and Rate Study 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 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.
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Monterey County Water Resources Agency (CA): New Source Water Evaluation 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): Financial Plan Study
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): Elevation Fee Credit Study
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): Financial Plan Study
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): Financial Plan and Rate Study
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): Financial Plan and Rate Study
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.
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City of Raleigh Public Utilities Department- American Rivers (NC): Water Supply Evaluation 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): Cost-of-Service and Rate Study
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): Funding Criteria Evaluation 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) Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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Jeremy Tamargo PE (OR)
PROJECT MANAGER
Manager
ROLE
Jeremy 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. Jeremy will serve as the City’s main point of contact for the project.
PROFILE
Jeremy has over a decade of diverse experience in engineering, local government, and government finance. Jeremy is a professional engineer (licensed in Oregon) with extensive experience in both the public and private sectors in civil engineering design as well as preparing utility master plans for municipal agencies in both Oregon and Washington. In his role as Assistant City Engineer at City of Tigard, Jeremy managed the City’s System Development Charge program for the Public Works Department, which was used to pay for the installation, construction, extension, and expansion of the City’s water, sanitary, sewer, stormwater, park and transportation systems.
His consulting experience in government finance includes preparing cost-ofservice rate studies for municipal water, sewer, recycled water and solid waste agencies. Jeremy is solutions-oriented, and he has a passion for focusing on technical excellence and exceptional client service on every project. He has a Master of Science in Environmental Engineering from Syracuse University and a Bachelor of Science in Civil Engineering from University of Notre Dame.
KEY PROJECT EXPERIENCE
Sweetwater Authority (CA): Water Rate Study
Jeremy prepared the cost-of-service study of water utility rates. Water rate study included numerous rate alternatives for residential tiered rates based on source of supply as well as a “phase-in” approach to adjusting the allocation of fixed vs. variable charges over the course of the rate implementation period.
City of Redding (CA): Water, Sewer, and Solid Waste Rate Study Prepared a cost-of-service study for water, sewer, and solid waste rates. Rate design for the three utilities included addressing City policy objectives and analyzing numerous rate structure alternatives.
El Dorado Irrigation District (CA): Water, Sewer, and Recycled Water Cost of Service and Rate Design Study
Worked with the district staff and board to review/recommend policy changes; alternative rate designs; and recommended water, sewer, and recycled water rates.
Specialties
• Utility cost-of-service & rate
structure studies
• Capacity fee studies
• Civil engineering design and review
• Utility master planning for public
works construction projects
• Technical report writing and review
Professional History
• Raftelis: Manager (2025-present)
• NBS Government Finance Group:
Associate Director (2024- 2025),
Engineering Consultant (2022-2023)
• City of Tigard, OR: Assistant City
Engineer (2022), Principal Engineer
(2020- 2022)
• City of Oregon City, OR: Project
Engineer (2019-2020)
• Otak, Inc.: Water Resources
Engineer (2018), Water Resources
Designer (2014-2018)
Education
• Master of Science, Environmental
Engineering - Syracuse University
(2014)
• Certificate, Advanced Study in
Sustainable Enterprise - Syracuse
University (2013)
• Bachelor of Science, Civil
Engineering - University of Notre
Dame (2010)
Certifications
• Professional Engineer (OR)
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City of Rio Vista (CA): Water, Sewer, and Stormwater Rate Study Completed comprehensive financial plans, cost of service analyses, and rate design for water, sewer and stormwater utilities for the City.
City of Victorville (CA): Sewer and Solid Waste Rate Study Prepared a cost-of-service study of sewer and solid waste utility rates. Sewer and solid waste studies analyzed alternative rate structures as well as alternative recommended reserve targets for consideration by City staff.
City of Turlock (CA): Sewer Rate Study
Prepared a cost-of-service study of sewer utility rates. The City had not raised sewer rates since 2013 and revenues from the previous rate structure were not fiscally sustainable. This study included meeting the City’s broader objections of ensuring adequate funding for operating and capital costs, maintaining reasonable reserves, and ensuring revenue stability in utility rates.
Washington County (OR): North Bethany Residential Development, North Bethany Ridge Otak has provided land use planning, site design, and infrastructure engineering services for multiple residential development projects in the North Bethany Area. Each development is required to implement the North Bethany Drainage Master Plan. For the following development projects, Jeremy has performed hydrologic analysis, stormwater facility siting and design, and performed hydraulic modeling to support the design for North Bethany Crest, North Bethany Ridge, North Bethany Creek 1 & 2, Arbor at West Park and North Bethany Park.
The North Bethany Ridge project is a proposed residential development in Washington County, OR consisting of seven multi-family buildings. Jeremy delineated drainage basins and calculated runoff rates for the site. Using this information, Jeremy sized and sited the low impact development approach (LIDA) facilities For water quality treatment. He also modeled and sized the storm drain network using an XPSWMM model.
Tigard (OR): River Terrace Residential Development
Otak has provided land use planning, site design, and infrastructure engineering services for multiple residential development projects in the River Terrace Area. Each development is required to follow the River Terrace Stormwater Master Plan and the new stormwater standards adopted for River Terrace. For the following development projects, Jeremy has performed hydrologic analysis, stormwater facility siting and design, and performed hydraulic modeling to support the design for River Terrace Northwest and River Terrace East.
Beaverton (OR): South Cooper Mountain Heights Residential Development Otak has provided land use planning, site design, and infrastructure engineering services for large residential development projects in the South Cooper Mountain Area. The development is required to implement the City of Beaverton and Clean Water Services Design & Construction Standards. Jeremy has performed hydrologic analysis, stormwater facility siting and design, and performed hydraulic modeling to support the design.
PROJECT LIST
• Sweetwater Authority (CA) – Water Rate Study
• City of Redding (CA) – Water, Sewer and Solid Waste Rate Studies • El Dorado Irrigation District (CA) – Water, Sewer and Recycled Water Cost-of-Service and Rate Design Study • City of Victorville (CA) – Sewer and Solid Waste Rate Studies • City of Rio Vista (CA) – Water, Sewer and Stormwater Rate Studies • City of Victorville (CA) – Sewer and Solid Waste Rate Study • City of Turlock (CA) – Sewer Rate Study
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• City of Turlock (CA) – Water Rate Study
• Rosamond CSD (CA) – Water and Sewer Capacity Fee Study • Camrosa Water District (CA) – Water In Lieu Fee Study • Ironhouse Sanitary District (CA) – Cost-of-Service Analysis and Rate Study • City of Santa Monica (CA) – Water, Wastewater and Recycled Water Rate Study • Hidden Valley CSD (CA) – Water, Recycled Water and Sewer Rate Study • City of Plymouth (CA) – Water and Wastewater Rate Studies • City of Colton (CA) – Water and Sewer Rate Studies
• City of Colton (CA) – Water and Sewer Capacity Fee Studies • Union PUD (CA) – Water Rate Study
• Town of Windsor (CA) – Water Capacity Fee Study
• Groveland CSD (CA) – Water and Sewer Rate Study
• Rincon del Diablo (CA) – Sewer Rate and Capacity Fee Study • City of Livermore (CA) – Sewer Rate Study
• City of Alameda (CA) – Sewer Rate Study
• Everett Custom Homes (OR) – Everett Crest Subdivision civil engineering and stormwater management design • North Bethany Residential Development (OR) - Hydrologic analysis, stormwater facility siting and design, and hydraulic modeling
• North Bethany Ridge (OR) – Stormwater management design including delineating drainage basins, calculating runoff rates, sizing low-impact development approach (LIDA) facilities for water quality treatment • North Bethany Crest (OR) - Stormwater management design including delineating drainage basins, calculating runoff rates, sizing low-impact development approach (LIDA) facilities for water quality treatment • Laurelwood Multi-family (OR) – Stormwater management design of water quality swale and underground detention chambers
• River Terrace Residential Development (OR) – Hydrologic analysis, stormwater facility siting and design, hydraulic modeling
• South Cooper Mountain Heights Residential Development (OR) – Hydrologic analysis, stormwater facility siting and design, hydraulic modeling
• US101 at Highway 6 Interchange Improvements (OR) – Preparation of civil construction drawings • US20 (PME) Highway Re-alignment Hydraulic Engineering (OR) – Water quality design of several bioswales for within the ODOT right-of-way as part of the highway realignment project • Findley Heights (OR) – Sizing of stormwater facilities for water quality and water quantity management, modeling and sizing of the storm drain pipe network
• Salt Millworks (NY) – Business plan development
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Morgan McCarthy JD
SOLID WASTE LEAD
Manager
ROLE
Morgan will lead the solid waste component of the rate study.
PROFILE
With over 18 years of experience in the solid waste and environmental management field, Morgan McCarthy is an accomplished professional with a strong track record of delivering practical, sustainable, and cost-effective solutions across the public and private sectors. Her work spans solid waste, recycling, organics, and yard waste programs, where she has supported municipalities, counties, and agencies in navigating complex regulatory and operational challenges.
Morgan’s background includes franchise and contract negotiations, RFP and policy development, municipal code drafting, waste audits, and feasibility assessments. She is known for her ability to develop strategies that enhance system performance, support compliance, and align with long-term sustainability goals. Her collaborative approach and problem-solving skills have made her a trusted advisor to clients seeking to modernize and optimize their waste management systems.
RELEVANT PROJECT LIST
City of Carlsbad (CA)
Developed an RFP for integrated collection and disposal services, conducted a cost-of-service study, and updated the municipal code for SB 1383 compliance. Led negotiations on amendments to the transfer station operating agreement and supported contractor selection.
City of Oakland (CA)
Produced expert witness reports, performed a cost of service study, and conducted a detailed waste audit to support legal proceedings and system performance evaluation.
Kern County (CA)
Directed a two-season waste characterization study, developed an RFP for waste services, and completed a feasibility and permitting assessment for an organics technology project.
Cities of Bakersfield, Oceanside, Taft, Ridgecrest, Atascadero, and San Bernardino County (CA)
Created RFPs for collection and disposal, updated municipal codes, and aligned franchise agreements with SB 1383 and 3-cart system requirements.
Specialties
• Regulatory fee studies and cost of
service analysis
• Strategic planning and feasibility
studies
• Contract negotiation and franchise
agreement drafting
• Waste and recycling program
optimization
• Zero-waste visioning and
implementation strategies
• Municipal code drafting and
ordinance development
• Regulatory compliance
• Waste audits and performance
benchmarking
• Stakeholder engagement and
outreach strategy
• Community recycling and education
program development
• Circular economy planning and
waste diversion strategies
• Legal research for solid waste
programs
• Data analysis and reporting for
regulatory compliance
Professional History
• Raftelis: Manager (2024-present)
• GBB: Project Manager (2022-2024)
• HF&H: Project Manager (2019-
2022)
• MuniEnvironmental: VP of
Marketing/Project Manager (2018-
2019); Sr Consultant (2015-2018)
• EDCO: Director of Special Projects
(2014-2015)
• Rent-a-Bin: Facilities Director (2006-
2012)
Education
• Juris Doctor - Thomas Jefferson
School of Law (2014)
• Bachelor of Science in Computer
Science, minor in Business, Magna
Cum Laude - Liberty University
(2007)
Certifications
• SWANA / CRRA Certified
Practitioner in Zero Waste Principles
and Practices (2023)
• SWANA Certification for Integrated
Solid Waste Management (2023)
Professional Memberships
• SWANA
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San Luis Obispo County (IWMA and member agencies) (CA)
Negotiated amendments to existing agreements and updated municipal codes for 7 cities and 14 service districts to comply with SB 1383. Developed short- and long-term solid waste planning strategies.
Santa Fe Springs (CA)
Updated contracts and municipal codes for regulatory compliance, implemented a C&D permitting and diversion tracking program, and led negotiations with haulers.
City of Industry (CA)
Designed C&D waste permitting and reporting systems to improve tracking and compliance with state mandates.
City of Bellflower (CA)
Completed a cost-of-service study for solid waste services to improve rate equity and operational transparency.
Louisville/Jefferson County (KY)
Supported stakeholder engagement and strategic planning to align solid waste programs with local and regional priorities, including zero waste goals. Worked collaboratively to develop communication tools and strategies for consensus-building and decision-making.
City of Albemarle (NC)
Conducted a feasibility assessment for bringing municipal solid waste, recycling, and construction and demolition debris collection in-house. Evaluated financial, operational, and logistical implications and provided recommendations for council decision-making.
Confidential Global Retail Client
Oversaw a national construction and demolition (C&D) diversion program for over 200 retail store renovations, including material evaluation, contractor coordination, site visits, and diversion reporting.
Anderson County (TN)
Reviewed landfill procurement strategy and advised on contract structure and evaluation criteria to support longterm service goals.
Seneca County (OH)
Prepared monthly environmental monitoring reports on landfill compliance and served as liaison to the Ohio EPA and county health department for issues related to air, water, and waste.
Commonwealth of the Northern Marianas Islands (Tinian, Saipan, Rota) Led zero waste visioning, island-wide waste characterization studies, and a pilot collection study. Facilitated stakeholder engagement and developed a comprehensive inter-island solid waste management plan, resulting in a Governor-signed zero waste proclamation.
Baltimore County (MD)
Managed a Solid Waste Infrastructure for Recycling (SWIFR) grant application to expand MRF operations and reduce GHG emissions. Also led the procurement process for transfer and disposal services across three transfer stations, including RFP development and contract drafting.
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Culpeper County (VA)
Drafted a Request for Proposals and service agreement for the procurement of a new transfer station operator, supporting the County’s infrastructure and operational goals.
PUBLICATIONS
• “Fast Fashion: Addressing Waste in the Fashion Industry – The Role of Consumers, Waste Today” 2024 • “Fast Fashion: Addressing Waste in the Fashion Industry Through Innovation, Waste Today” 2024 • “Legal Risks and Mitigation Strategies in Solid Waste Master Planning, Waste Advantage” 2025 • “Flow Control in Flux: How Courts, Climate, and Competition Are Shaping the Future of Waste Ordinances, Waste Advantage” 2025
UPCOMING PUBLICATIONS (2025)
• Managing Methane: Waste Management’s Role in Tackling Climate Change • Circular Innovation in Construction and Demolition Waste Management • Agricultural Waste Management: Turning Farm Waste into Valuable Resources • Marine Waste Management: Tackling Pollution in Coastal Communities • Building Trust: The Role of Transparency in Municipal Waste Contracts • Innovative Recycling Markets: From Ocean Plastics to Fashion • Event Waste Management: Strategies for Greening Large Gatherings • Advanced Recycling Technologies: Breaking Down Plastics at the Molecular Level • Plastic Credits: A New Tool for Tackling Ocean Pollution Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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Harold Mitchell PMP, ACP, PMI-PBA
SOLID WASTE LEAD
Senior Consultant
ROLE
Harold will lead the solid waste component of the rate study.
PROFILE
Harold specializes in solid waste and stormwater financial assessments, supporting project decision-making and prioritization with detailed analyses.
Previously, he optimized business applications and led IT projects at International Paper and managed SaaS and IT infrastructure projects for the City of Memphis. As a Lead Database Analyst for Memphis' Solid Waste Division, he enhanced fleet and route services with data visualizations and automated reporting. He led the integration of Rubicon’s SaaS with Oracle’s CRM database and ensured the fleet’s 360+ vehicles were equipped for improved route tracking and maintenance. Harold holds an MBA with a focus on Project Management and Data Analytics and professional certifications, including PMP, PMI-ACP, and PMI-PBA. He is proficient in Power BI, SQL, and financial modeling.
RELEVANT PROJECT EXPERIENCE
Montgomery County (OH): Solid Waste Billing Software & Call Center Montgomery County is engaged with Raftelis to support Annual Property Charge (APC) solid waste billing using the billing software designed by Raftelis for this purpose. Additionally, Raftelis staffed a call center to intake customer questions and disputes regarding the fee. Harold assisted in the development of standard operating procedures and training materials. Harold also managed the call center staff, ensuring appropriate coverage of representatives and that proper tracking procedures were utilized.
Additionally, he compiled and provided reports of activities and open inquiries to County staff on a weekly basis, ensuring inquiries were progressing through the appropriate channels before being closed out. He will continue in this role for the upcoming call center period in January 2025.
City of Memphis (TN): Solid Waste Division Financial Modeling Conducting analysis of various service delivery scenarios for future fiscal years, to determine the revenue requirements for each. The results of this analysis will be a proposal for a new per-customer rate surrounding the new service delivery model proposed.
Port St. Lucie (FL): Solid Waste In-House Study
Conducting analysis pertaining to sourcing staffing, facility, and fleet needs in-house, regarding city solid waste services, for both residential and commercial customers within the servicing area. The result of this analysis will be a Specialties
• Local Government/Rubicon
• Financial Modeling
• Solid Waste Collection and
Operations
• Data Analytics
• Feasibility Studies
Professional History
• Raftelis: Senior Consultant (2023-
Current)
• International Paper: Business
Analyst (2022-2023)
• City of Memphis: Project Manager
(2021-2022); Lead Database
Analyst (2019-2021)
Education
• Master of Business Administration in
Project Management & Data
Analytics - University of Memphis
(2022)
• Bachelor of Science in Sociology &
Public Administration - University of
Memphis (2017)
Certifications
• PMI-PMP (Project Management
Professional)
• PMI-PBA (Professional Business
Analyst)
• PMI-ACP (Agile Certified
Practitioner)
• Microsoft Office Specialist (MOS
Expert)
Professional Memberships
• Project Management Institute – PMI
Memphis Chapter Member
• PMI Netherlands Chapter Member
• PMI Memphis Board Member, VP of
Technology
• SWANA - Young Professional
• Leadership Memphis Alumni
Member
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per customer, per service type cost, that will be provided as a high-level comparison to the current contracted service, per customer, cost.
Louisville-Jefferson County Metro Government (KY)
Raftelis is partnering with the Louisville Metro Waste Management District (WMD) to assess the feasibility of transitioning waste and recycling collection services to a municipally operated system. The project focuses on evaluating service levels and cost per household, including garbage, recycling, yard waste, and bulky waste, while benchmarking against contracted areas in the region. This analysis includes assessing community impacts, providing statistically significant data at the zip code level, and delivering actionable recommendations to enhance service delivery and cost efficiency. The work aligns with WMD’s commitment to meeting Kentucky’s Solid Waste Management Five-Year Plan goals and ensuring an effective, sustainable waste management system for Louisville Metro.
City of Albemarle (NC)
The City of Albemarle partnered with Raftelis in 2024 to evaluate the feasibility of bringing municipal solid waste, recycling, and construction and demolition (C&D) debris collection services in-house. This project focuses on assessing the operational, financial, and logistical requirements for transitioning from contracted services to a municipally operated system. Key tasks include analyzing the city's current waste management system, identifying infrastructure and staffing needs, and developing cost comparisons between contracted and in-house service models.
Raftelis is also engaging city officials and community stakeholders to align project outcomes with the City’s goals for efficiency, sustainability, and financial responsibility.
Arlington County (VA): Stormwater Utility Implementation & Software Arlington County (County) worked with Raftelis to explore the feasibility of moving from tax-based stormwater funding to a stormwater enterprise fund managed by a utility supported by impervious area-based user fees. The County ultimately decided to move forward with a utility and software to support the calculation and communication of stormwater fees to the County Treasurer for levy. Harold was involved in internal testing of the software and orchestrated user acceptance testing with the County. Harold also helped develop documentation on software functionality and use cases for the County.
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Gina DePinto APR
PUBLIC OUTREACH SERVICES LEAD
Manager
ROLE
Gina will lead the public outreach services component of the rate study.
PROFILE
Gina is an award-winning and accredited public relations professional with more than 34 years of experience and leadership in crisis communications, community outreach, advocacy, stakeholder engagement, marketing, and media relations in the public and private sectors. Gina’s leadership experience includes communications program management for $2 billion in public transportation and water infrastructure projects, including the Port of Long Beach Gerald Desmond Bridge Replacement Project and the Orange County Groundwater Replenishment System. The GWRS has been covered by international media including National Geographic, Wall Street Journal, New York Times, BBC, CNN, and NPR to name a few. Prior to joining Raftelis, Gina served the residents of Santa Barbara County as the first executive Communications Manager in the county government’s 171-year history. She advised the County Executive Team on strategic communications programs, crisis communication, media relations, issues management, internal communications, branding and culture change. During her tenure, the County Emergency Operations Center was activated 19 times and included two federally declared disasters, a global pandemic, two mass casualty incidents, and a $2M embezzlement in the Public Works Department. Born and raised in Phoenix, Arizona, DePinto served as a public information officer for the City of Phoenix, public relations director for Farnam Companies, Inc. (animal health and pet products), and coordinated publicity for Olympic and World Champion figure skater Dorothy Hammill prior to relocating to California.
Gina earned a bachelor’s degree in organizational communication from Arizona State University, is accredited in public relations from the Public Relations Society of America (PRSA), and holds certificates in public participation from the International Association for Public Participation (IAP2). Gina is currently a member of the California Association of Public Information Officials (CAPIO), Public Relations Society of America (PRSA), and the Municipal Management Association of Southern California (MMASC).
KEY PROJECT EXPERIENCE
City of West Sacramento (CA): Water, Sewer, and Solid Waste Rate Study Communications and Outreach
Raftelis was hired to build stakeholder awareness of and support for the City's water, sewer, and solid waste rate study. Gina was the architect of the strategic communications plan that included detailed analysis of key stakeholders, messages designed to Specialties
• Strategic communications planning
• Crisis & risk communications
• Reputation management
• Stakeholder engagement
• Media relations & media training
• Development & oversight of earned
social and paid media
• Writing, copyediting, script writing
• Collateral development and art
direction
• Branding and marketing
• Public speaking
Professional History
• Raftelis: Manager, Strategic
Communications (2022-present)
• County of Santa Barbara:
Communications Manager (2016-
2022)
• Westbound Communications:
Account Director (2013-2016)
• Orange County Water District:
Communications Specialist (2006-
2013)
• Bylines Public Relations &
Marketing: Owner/Principle (1996-
2006)
• Farnam Companies: Public
Relations Director (2000-2003)
• City of Phoenix: Public Information
Officer (1998-2000)
• Martz Goldwater Public Relations:
Senior Account Executive (1996-
1997)
• Dorothy Hamill’s Ice Capades:
Marketing Manager & Publicist
(1993-1995)
Education
• Accredited in Public Relations –
PRSA (2013)
• Bachelor of Arts in Organizational
Communication - Arizona State
University (1987)
Professional Memberships
• Public Relations Society of America
• California Association of Public
Information Officials
• Municipal Management Association
of Southern California
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communicate complex concepts in a clear and concise manner, and print, digital, and video tools designed to raise awareness and support for the changes. The City has a significant community of Russian speakers, so materials were produced in English, Spanish, and Russian. Gina produced a custom explainer video in three languages to communicate how rates are developed, particularly within the framework of California Proposition 218 laws.
County of Marin (CA): Communications Audit and Development of Strategic Communications Plan Gina is currently under contract to lead a comprehensive review and assessment of the County of Marin’s communication program and resources. The County of Marin selected Raftelis to develop and implement a comprehensive, cohesive, organization-wide strategic communications plan to increase engagement with its communities and help staff share the County’s story to build trust, understanding, and support for the County’s programs, policies, and Board priorities. The plan will include an inclusive strategy for internal communications and articulate a vision for the County’s outreach and engagement efforts across diverse and multi-lingual communities, define key roles and responsibilities, and propose a realistic implementation plan that informs appropriate resource allocation. Currently, the research phase is underway and includes a communications assessment, internal and external stakeholder interviews, benchmark interviews, and focus groups with the executive team, department leaders, middle managers, and staff tasked with centralized and department-specific communications.
City of Calistoga (CA): Water and Sewer Rate Study Communications and Outreach In 2022, the City hired Raftelis to conduct its latest water and sewer rate study, which was expected to face opposition. Rates were already the highest in the region because Calistoga is a small town of only 5,000 people whose rates must cover the cost of having significant and aging capital utility systems – economies of scale. Gina developed and executed an engagement plan to guide outreach activities for the rate study. The tactics included an engagement plan with a master message platform; bilingual website content, fact sheet, video, and social media content; direct mail; and a series of community meetings and Council presentations. The outreach began 18 months before the City Council successfully adopted new rates in December 2023.
Soquel Creek Water District (CA): Strategic Communications and Citizen Advisory Committee Facilitation
For many years, the Soquel Creek Water District capital expenditures, water reliability projects, and rates have been at best, a source of opposition, and at worst, legally contested. In 2023, under extreme inflationary pressures, Raftelis was hired to update the Financial Plan, thoroughly review the cost of service, develop and implement a robust strategic communications plan, and facilitate an ad-hoc Water Rates Advisory Committee comprised of two Board members and citizen volunteers. Input and feedback from the Committee was helpful to Board deliberations and informed rate study scenarios. The strategies and tactics included messaging, website content, editorials, press releases, custom explainer videos, social media, bill stuffers, weekly and monthly newsletter content, open houses, a webinar, and an informative Proposition 218 public notice designed in a way that customers want to read.
Ultimately, the Board successfully implemented new rates in February 2024.
City of Seal Beach (CA): Water and Sewer Rate Study Communications and Outreach As the strategic communications project manager, Gina is leading public outreach efforts for the City including development of a rate study website, and producing an outreach implementation plan, FAQs, custom videos, a calendar of events and public meetings, and the Proposition 218 Notice. To inform and engage residents and customers, Gina has facilitated informational webinars, community meetings, and open houses. In February 2024, the City Council voted to delay adopting new rates for further study and review, and while the City considers adding a tax measure on the 2024 General Election ballot.
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County of Santa Barbara (CA): Stakeholder Engagement Program Recreational cannabis was overwhelmingly approved by voters in California, yet it remains a controversial and divisive land use, water, agriculture, and environmental issue. Gina led proactive and transparent outreach to ensure all stakeholders were engaged throughout the ongoing development of the County of Santa Barbara permitting and licensing ordinance that included more than 100 public meetings. A separate process followed to allow, permit and license a limited number of cannabis retail storefront operations. Gina developed an outreach program to address the challenge of creating a fair and legal process for retail storefront operators to apply for a license while also ensuring the community had every opportunity to provide input and address questions and concerns about security, traffic, parking, odor, and proximity to schools, daycare, and youth sports. In-person community meetings were replaced with virtual meetings in mid-2020 due to the pandemic at a time when using Zoom was new, uncomfortable, and seen as a barrier to participation. Tactics included interactive maps, bilingual videotaped presentations available on the website ahead of the virtual meetings, FAQs, a Zoom how-to guide, videos of the recordings, and a community survey. This outreach program was recognized by the California State Association of Counties (CSAC) with an Infrastructure Challenge Award, one of only 21 selected out of 433 entries.
Orange County (CA): Infrastructure Outreach and Communications For Water Reuse Project Gina led communications and outreach for the world's largest advanced water purification system for potable reuse.
While Orange County’s Groundwater Replenishment System (GWRS) is one of the most celebrated civil engineering and water reuse projects in the world, its success is equally recognized for the robust strategic public engagement and outreach program. In the early 2000s, public opposition had prevented or shuttered similar water reuse projects in Los Angeles and San Diego, but Orange County’s system earned the public’s trust and overwhelming support. The strategic communications plan included a support letter campaign, citizens advisory group, multicultural outreach, media outreach, speaker’s bureau, and facility tour program with technology demonstrations and water tasting. To date, the GWRS has never been publicly opposed. Initially producing 70 million gallons of purified water per day in 2012, the GWRS final expansion will increase capacity from 100 MGD to 130 MGD, enough to secure water reliability for more than 1 million people.
Port of Long Beach (CA): Infrastructure Outreach and Communications Gina led a team of six practitioners to design and manage the communication strategy for the $1.8 billion Port of Long Beach Gerald Desmond Bridge Replacement Project, one of the largest and most significant highway infrastructure projects in California. Roughly 15 percent of the nation’s waterborne cargo is trucked over it, and the bridge is a critical access route for commuters between the Port of Long Beach (Port), downtown Long Beach and surrounding communities. The work included the development of a content-rich website and mobile application to provide traffic conditions, construction updates, links to social media and live cameras, and weekly bilingual audio reports to deliver hands-free updates to professional truck drivers and commuters. Within months of launching, the app was featured as a successful communications case study in PR Week magazine.
Orange County (CA): Water Education and Outreach Program Development While leading strategic communications at the Orange County Water District (OCWD), Gina was engaged with planning and directing content, and engaging partners and sponsors for several signature events to engage generational audiences about regional and state water resources and supplies, water efficiency, and environmental sustainability. Key partners and sponsors included The Walt Disney Company, National Geographic, Wyland Foundation, UC Irvine, UCLA, NASA JPL, USGS, National Water Research Institute, California Department of Water Resources, and others to support events like the annual O.C. Water Summit, Children’s Water Education Festival, and the Groundwater Adventure Tour.
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Orange County Water District (CA): Groundwater Contamination Outreach Orange County’s groundwater is the source of 75 percent of the drinking water for 2.4 million people. After levels of volatile organic chemicals and perchlorate were detected in groundwater wells exceeding the max loads allowed by the California Department of Public Health, the Orange County Water District (OCWD) initiated the South Basin Groundwater Protection Program to construct six monitoring wells to measure the direction and speed of the migrating contamination. Gina developed and managed the construction outreach plan to address impact mitigation measures, build support from municipal leaders, and assure residents that their drinking water was safe.
Outreach tactics included messaging, materials, face-to-face communication, and community meetings with maps, pictures, visuals, and access to subject matter experts. The successful outreach program achieved 100% support of the program from all municipal partners and no public opposition.
Orange County (CA): Strategic Media Relations for Groundwater Replenishment System Gina led media relations for Orange County’s Groundwater Replenishment System (GWRS) interfacing with national and international broadcast, print, and online journalists. As the world’s largest water reuse project of its kind, the GWRS was covered extensively by broadcast and print media including The Wall Street Journal, New York Times, Time, National Geographic, USA Today, The Economist, Der Spiegel (Germany), Christian Science Monitor, Discovery Channel, CNN, NBC News, and NPR. The GWRS was also featured in the water documentary, “Last Call at the Oasis,” and is featured in the K-8 educational book series called “Going Blue” produced by Philippe Cousteau and EarthEcho International.
Carpinteria Groundwater Sustainability Agency (CA): Rate Study Communications and Engagement Gina provided strategic guidance to the Carpinteria Groundwater Sustainability Agency (CGSA) Executive Director in support of establishing a groundwater users sustainability fee. The CGSA was formed in 2020 after the groundwater basin was designated a high priority by the state Department of Water Resources under the Sustainable Groundwater Management Act (SGMA). Without the ability to collect rates or fees, the CGSA was operating on loans from the Carpinteria Valley Water District for two years. Gina developed and executed an engagement plan to guide outreach activities for the fee study. The tactics included an engagement plan with a master message platform; bilingual website content, fact sheet, video, and social media content; direct mail; and a series of community meetings and Board presentations. As recommended in Raftelis’ Fee Study Report, the CGSA Board of Directors approved a groundwater fee assessed beginning with FY 2022-23.
Santa Barbara County (CA): Crisis Communications and Disaster Response Over nearly six years as the Communications Manager for the County of Santa Barbara, Gina led communications for 19 extended emergencies including two federally declared disasters, a global pandemic, and two mass casualty incidents. In her first three months on the job, the county experienced two wildfires. To better serve the public, Gina initiated custom bilingual emergency messaging and social media across all communication channels, which is now the standard in California. Back-to-back wildfire and debris flow disasters that killed 23 people in Montecito necessitated staffing the Joint Information Center for seven continuous months to issue bilingual public information on preparedness, recovery and rebuilding, and support a 16-month Local Assistance Center and long-term Recovery Strategic Plan for the area.
Santa Barbara County (CA): Crisis Communication Messaging and Media Training Gina developed a crisis communication plan, key messaging, Q&A, and media spokesperson training to guide the County of Santa Barbara (County) through a $40 million pension rebalance and $2 million embezzlement in the Public Works Department. For the pension rebalance, 4,600 employees were engaged through a series of face-toface meetings with the executive and budget teams to address questions and concerns. The pension rebalance program ultimately led the County to embark on a 5-year transformation initiative and strategic plan called Renew Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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2022. Following the embezzlement, process improvements were implemented, and Gina developed messaging and collateral for a whistleblower program overseen by the County Auditor’s Office.
WaterOne (KS): Media Training
WaterOne is an independent public water utility covering 17 cities and 272 square miles in Johnson County, Kansas. Customers consistently give W1 high marks with an average overall customer satisfaction rating of 90 percent for water quality, reliability, customer service, and for its responsive, friendly, professional staff. However, trust and credibility the agency enjoys today can be lost in a hot minute as a result of an unexpected crisis. When an organization finds itself in the midst of an unexpected crisis or has major news to share, PR training and media relations knowledge can come in handy. Media training helps spokespeople improve their communication skills, including how to articulate their message clearly and concisely, how to engage with the media effectively, and how to handle difficult questions or scenarios. Potential issues on the agency’s radar include PFAS, lead action levels, boil-water incidents, and cyber security. With these and other scenarios in mind, Gina conducted a half-day spokesperson media training with off and on-camera guidance. Participants learned how to prepare messaging, think in soundbites, and hook, bridge, and flag. She then filmed them so they could apply what they learned in mock, on-camera interviews, and facilitated a team coaching session while reviewing the videos.
Canton Township (MI): Communications Assessment
Gina conducted a comprehensive review and assessment of Canton Township’s approach to communications and outreach to assure it was reaching constituents efficiently and with timely information while successfully achieving the Township’s mission. The assessment included a comprehensive, systematic, and customized review of the communication program through an environmental scan, in-depth materials review, internal and external stakeholder interviews, a public survey, focus groups, and benchmark interviews. The final assessment underscored efforts that are working well and provided many easy-to-implement recommendations.
City of Carson (CA): Strategic Communications and Marketing Plans Raftelis was contracted to develop a citywide communication plan, event center marketing plan, and design new branding and wayfinding signage. To develop the plans, Gina conducted stakeholder interviews, a benchmark study, communications audit and developed an event center customer survey. To date, the City Council has not adopted the new branding.
Santa Barbara County (CA): Corporate Strategic Planning In 2017, the County of Santa Barbara embarked on a five-year initiative to transform how the County government does its work. The Renew 2022 initiative originated with an internal strategic organizational plan in 2015, followed by the Budget Rebalance effort in 2016, which was intended to address significant pension cost increases. Renew ‘22 sought to build the County’s capacity for innovation and continuous improvement through organizational transformation. Gina developed a comprehensive communications and engagement plan, master messaging platform, fact sheets, video presentations, employee and public presentations, employee feedback surveys, logo development and branding guide, and four sessions of a one-day custom leadership development seminar scripted by Gina that was offered to 300 middle managers.
PRESENTATIONS
• “Public Engagement Strategies and Best Practices” (panelist), 2024 AWWA ACE Annual Conference, Anaheim, Calif.
• “How Will Artificial Intelligence Transform Your Communications and Community Engagement,” 2023 CA-NV AWWA Annual Fall Conference, Las Vegas, Nev.
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• “Business Communications,” County of Santa Barbara Employee University training and development curriculum (2019)
• “Elevate Your Leadership Communication Strategies,” County of Santa Barbara Leadership Certificate Program curriculum (2018)
• “Front Line Crisis Communications: Are You Prepared?” 2019 Public Relations Society of America Western District Conference, Phoenix, Ariz.
• “Emergency Communications: Technical Solutions, Political Risks, Community Information and Lessons Learned” (panelist), 2019 League of California Cities City Manager Conference, San Diego, Calif. • “Emergency Situations and Crisis Plans for PEG Channels” (panelist), National Association of Telecommunications Officers and Advisors (NATOA), Webinar
• “Communication Tools and Methods During Times of Crisis,” 2018 California Association of Public Information Officials (CAPIO) Annual Conference, Santa Rosa, Calif. • “California’s Year of Wildfires” (panelist), 2018 California Association of Public Information Officials (CAPIO) Annual Conference, Santa Rosa, Calif.
• “Emergency Communications and the Joint Information Center” (panelist), 2018 Summer Session, Municipal Managers Association of Southern California (MMASC), Pasadena, Calif. • “Natural Disasters” panelist “Santa Barbara County Thomas Fire and 1/9 Montecito Debris Flow Communications,” 2018 National Information Officers Association (NIOA) Annual Conference, Clearwater Beach, Fla.
PUBLICATIONS
• “Create a More Cohesive Community Through Effective Public Engagement,” AWWA Source Magazine, October 2024
• “Customer Satisfaction Plunges As Rates Rise; What the Latest J.D. Power Study Report Tell Us and What You Can Do About It,” Think Tank, Raftelis, June 2022
• “Alisal Fire – Flood After Fire Threat Preparations,” consumer preparedness article, October 17, 2021 • “Behind the Scenes with the Emergency Public Information Communicators (EPIC),” guest editorial, Santa Barbara Noozhawk, April 13, 2017
• “Environmental Law Practice Grows,” guest editorial, Arizona Capitol Times, March 28, 1997 • “Build Brand Equity: A Race to the Finish,” guest editorial, Equestrian Retailer (B2B), September 2003 • “A New Way to Behave,” contributed feature article, Pet Business (B2B), February 2003 Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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Lindsay Roth
STAFF CONSULTANT
Senior Consultant
ROLE
Lindsay will work at the direction of Jeremy in conducting analyses and preparing deliverables for the rate study.
PROFILE
Lindsay has over five 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 Hayward (CA): Water, Recycled Water, Wastewater, and Capacity Fee Rate Study The City of Hayward (City) engaged Raftelis in 2022 to conduct a comprehensive water, recycled water, and wastewater cost of service and rate study and a capacity fee 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 as well as planning for large wastewater capital expenditures over the next 10 years. Lindsay served as a 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 Redlands (CA): Water and Wastewater Rate Study
The City of Redlands (CA) engaged Raftelis in 2022 to conduct a water, wastewater, and recycled water rate study.
Lindsay is serving as the lead analyst on the City’s rate study. The study involves the development of a long-term financial plan, conducting updated cost of service analyses, and designing rates for each of the three utilities. Some of the main considerations for the study are increased CIP costs for the water and wastewater utilities in the shortterm, maintaining sufficient reserves, and reducing rate shock to customers.
City of Pleasanton (CA): Water, Wastewater, Capacity Fee, and Drought Rates Study City of Pleasanton (City) engaged Raftelis in 2019 to update its water, recycled water, and wastewater rates as well as conduct capacity fee and drought rate studies. Lindsay is serving as lead analyst on the City’s rate study. The study involves developing long-term financial plans, conducting cost of service analyses, and designing rate structures for each of the three enterprises. The main considerations for the study include funding capital projects to remediate PFAS groundwater contamination, maintaining financial sufficiency for all enterprises, encouraging conservation during periods of drought, and reducing rate shock to customers.
Specialties
• Data analysis & visualization
• Water & sewer financial analysis
• Statistical analysis
Professional History
• Raftelis: Senior Consultant (2025-
present); Consultant (2023-2024);
Associate Consultant (2020-2022)
• 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)
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City of Hollister (CA): Water Rate Study
City of Hollister (City) engaged Raftelis in 2021 to conduct a water and wastewater cost of service and rate study as well as a water and wastewater capacity fee study. Lindsay served as an associate consultant on the project and was the lead analyst for the cost of service and rate study. The study required Raftelis to develop rates that built up reserves over time without creating rate shock to water users as well as work with the project team and City staff to evaluate various rate structure options. Lindsay also wrote a detailed rate study report explaining every step of the rate study and capacity fee study process.
City of Torrance (CA): Wastewater and Solid Waste Rate Study 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.
Carpinteria Valley Groundwater Sustainability Agency (CA): GSA Fee Study The Carpinteria Groundwater Sustainability Agency (Agency) engaged Raftelis in 2021 to conduct a GSA Fee Study to proposed groundwater user fees to fund Phase Two of GSA Operations. Lindsay served as the lead analyst on the fee study. She developed a financial plan and worked with the project team as well as Agency staff to evaluate the best methodology for calculating the GSA user fee.
Coastside County Water District (CA): Drought Rate Study The Coastside County Water District (District) engaged Raftelis in 2022 to conduct a water rate study. The study included the development of a long-term financial plan, proposed water rates, and proposed water shortage rates.
Lindsay served as lead analyst on the District’s rate study. The main considerations for the study included funding increased capital costs and navigating funding source options to reduce rate shock to customers as well as developing new water shortage rates for the District to have as a tool during times of reduced water availability.
City of Coronado (CA): Wastewater Rate Study
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 Palo Alto (CA): Drought Rate Study
The City of Palo Alto (City) engaged Raftelis in 2022 to conduct a drought rate study. The City wanted to be prepared for unplanned SFPUC mandatory water reductions, which would result in reduced water rate revenue.
Lindsay served as the lead analyst on the project. The study required Raftelis to develop drought rates that recover lost revenue and any additional costs of drought incurred by the City during a declared drought stage. The rates were tailored to each stage of drought and customer class according to the City’s Water Shortage Contingency Plan.
The drought rate model also included an allotment for each customer class that would be excluded from the drought rate charges to ensure equitable rates for customers who already conserve their water usage.
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San Lorenzo Valley Water District (CA): Water and Wastewater Rate Study The San Lorenzo Valley Water District (District) engaged Raftelis in 2023 to conduct a water and wastewater rate study. Lindsay is serving as the lead analyst on the District’s rate study. The study involves the development of a long term financial plan for each utility, conducting an updated cost of service for the water utility, and designing rate alternatives for the water utility. The District has incurred large CIP costs in recent years as a result of wildfires throughout the region, so one of the main considerations for the study is modeling various funding sources for the District in addition to building up sufficient reserves to fund emergency expenses in the future while avoiding rate shock to customers.
Soquel Creek Water District (CA): Water Rate Study And Capacity Fee Study The Soquel Creek Water District (District) engaged Raftelis in 2023 to conduct a comprehensive water rate study proposing rates for the next four years and to provide a financial plan and rate model to serve as a planning resource for future use. The project required balancing multiple financial objectives, including rate revenue stability, social equity of rates, promoting efficient water use, and reducing rate shock and bill impacts to customers. Lindsay is serving as lead analyst on the project and is developing a long term financial plan, a cost of service analysis, and rate design alternatives as part of the rate study model.
City of South Gate (CA): Wastewater Rate Study
The City of South Gate (City) engaged Raftelis in 2022 to conduct a wastewater rate study proposing rates for the next five years. The City had not implemented any rate increases for several years before the rate study. Therefore, Raftelis had to balance the City’s objectives of preventing rate spikes with ensuring revenue. Lindsay served as the lead analyst on the project and developed a long term financial plan, a cost of service analysis, and a rate design as part of the rate study model for the project.
City of Thousand Oaks (CA): Water and Wastewater Rate Study 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.
City of Ventura (CA): Water and Wastewater Bill Impact Study 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.
San Benito County Water District (CA): Water Rate Study San Benito County Water District (SBCWD) engaged Raftelis in 2021 to develop a longer-term financial plan to capture planned major capital improvements that will come from the pending water master plan, as well as updating the cost allocating methodology. The SBCWD has a unique water system driven by allocations of purchased water, groundwater sources, and maintaining adequate water reserves in storage. Lindsay is building the financial planning and cost of service model.
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Nick Kennedy
STAFF CONSULTANT
Associate Consultant
ROLE
Nick will work at the direction of Jeremy in conducting analyses and preparing deliverables for the rate study.
PROFILE
Nick has a professional background in sustainable community development and data analysis. He holds a BS in Environmental Economics with a focus in Business Sustainability from Ohio State University.
KEY PROJECT EXPERIENCE
City of Hollister (CA): Wastewater Rate Study
The City of Hollister (City) engaged Raftelis in 2021 to conduct a comprehensive water and wastewater cost-of-service and rate study as well as a capacity fee study for the water and wastewater utilities. Nick served as an associate consultant on the project and was the lead analyst for the wastewater cost-of-service, rate study, and capacity fee study. The rate study required Raftelis to develop wastewater rates that would keep reserves in a healthy position while still providing fair and equitable rates to wastewater customers.
Padre Dam Municipal Water District (CA): Water, Recycled, and Wastewater Rate Study Padre Dam Municipal Water District (PDMWD) engaged Raftelis in 2021 to complete a comprehensive cost of service and rate study for their potable, recycled, and sewer enterprises as well as establishing an updated fully burdened hourly rate and creating a miscellaneous fee calculator for District use. Nick served as an associate analyst on the project and assisted in the development of rates for all three enterprises. Nick served as the lead analyst in creating an updated fully burdened hourly rate and creating the miscellaneous fee calculator.
City of Manhattan Beach (CA): Pass-through Rate Calculation The City of Manhattan beach (CA) engaged Raftelis in 2024 to calculate a water pass-through rate. The purpose of the calculation was to develop a pass-through rate for FY 2025 in order to recover the difference between previously assumed wholesale water purchase costs and actual wholesale water purchase costs. Nick served as an associate consultant on the project and developed the pass-through rate for the City.
City of Inglewood (CA): Water and Wastewater Rate Study The City of Inglewood (CA) engaged Raftelis in 2024 to conduct a comprehensive water and wastewater rate study.
The City has not implemented any rate increases for several years before the rate study. As a result, Raftelis has to balance the City’s objectives of preventing rate spikes while ensuring adequate revenue. Nick is serving as the lead analyst on the project and developing a long-term financial plan and cost of service model for both utilities.
PROJECT LIST
• City of Hollister (CA) – Wastewater Rate Study
Specialties
• Environmental economics
• Community development
• Business sustainability
Professional History
• Raftelis: Associate Consultant
(2024-Present, 2021-2023)
• City of Columbus: Department of
Development Intern (2020-2020)
• Brightview Enterprise Solutions:
Data Analytics Intern (2020-2020)
Education
• Bachelor of Science in Environment,
Economy, Development, and
Sustainability – Ohio State
University (2020)
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• Padre Dam Municipal Water District (CA) – Water, Recycled, and Wastewater Rate Study • Mesa Water District (CA) – Cost comparison study
• Manhattan Beach (CA) – Pass-through Rate Calculation
• San Angelo (TX) – Water and Wastewater Rate Study
• Inglewood (CA) – Water and Wastewater Rate Study
• Seal Beach (CA) – Water and Wastewater Rate Study
RELEVANT PROFESSIONAL EXPERIENCE
City of Columbus Department of Development: Intern (OH) Nick served as a Department of Development intern with the City of Columbus (City). He collaborated within the City’s government as well as other cities across the country. Nick led process reviewing recent updates to zoning codes in similar cities in the United States and making recommendations for the City moving forward, specifically pertaining to sustainable and equitable development. Research was also done to compare the City’s waste reduction goals compared to other cities. Recommendations were made and implemented into the Office of Sustainability’s 2030 Waste Reduction Plan.
Brightview Enterprise Solutions: Data Analytics Intern (OH) Nick served as a data analytics intern with Brightview Enterprise Solutions in New Albany, OH. He worked across all business fronts in the company, including the Finance, Client Analytics, and Data Analytics teams. Nick created an annual breakdown within the Client Analytics team for one of the company’s largest clients and made recommendations on where money is best spent in future years based off the historical data. He assisted the Finance department in billing clients and paying vendors, as well as ensuring data quality. Nick used GIS applications to map out properties. He also created a dashboard for executive leadership to universally track KPI’s across different clients within the Data Analytics department.
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Casey Goodwin
STAFF CONSULTANT
Consultant
ROLE
Casey will work at the direction of Jeremy in conducting analyses and preparing deliverables for the rate study.
PROFILE
Casey Goodwin joined Raftelis after graduating from Tufts University with an MS in Sustainable Water Management. Since joining Raftelis in January 2023, he has contributed to water and sewer rate studies, private utility rate filings, cost-of-service studies, and financial planning studies. He has also worked on customer assistance program design, affordability analyses, and authored an article on the unintended impacts of conservation-oriented rate design and traditional affordability programs on renters. Prior to Raftelis, he worked for the Massachusetts Rivers Alliance, the Stockholm Environment Institute, and as a teaching assistant for the Harvard Extension School. At Mass Rivers, he co-developed a stormwater Technical Assistance Program and researched ways to finance green infrastructure and stormwater utilities.
At the Harvard Extension School, he has helped prepare classes, developed and graded assignments, recruited guest speakers, and guided students through term projects. As a researcher at the Stockholm Environment Institute, he co-wrote manuscripts for projects related to olive oil processing in Morocco and the future of the agricultural sector in Jamaica.
KEY PROJECT EXPERIENCE
Pittsburgh Water and Sewer Authority (PA): Financial Planning, Cost of Service, and Rate Filing Casey collaborated with the Pittsburgh Water and Sewer Authority (PWSA) to update their financial planning and cost of service model as part of their 2023 rate filing with the Pennsylvania Public Utility Commission (PUC). He analyzed water and sewer billing data, current and historical budget data, and future and historical debt amortization schedules. He also prepared filing schedules, responded to discovery questions from intervenors, analyzed intervenor testimony, co-led the development of a rebuttal model, and prepared filing and rebuttal testimony. He also compiled depreciation data, performed quality testing, and helped PWSA with asset valuation.
Columbia Water Company (PA): Cost of Service, Rate Design, and Rate Filing Casey helped Columbia Water Company with their 2023 rate filing with the Pennsylvania PUC. He prepared filing schedules, helped to update their cost-of-service model, analyzed intervenor testimony, and helped to prepare rebuttal testimony.
KEY PROJECT LIST
• Pittsburgh Water and Sewer Authority (PA) – Financial planning analysis and cost-of-service rate study, rate filing, financial capacity assessment
• Lehigh County Authority (PA) – Financial planning analysis • Columbia Water Company (PA) – Cost of service and rate design, rate filing Specialties
• Financial modeling
• Water, sewer, and stormwater rate
design
• Green infrastructure
• Data analysis
• Affordability analysis
Recent Professional History
• Raftelis: Consultant (2024-present);
Associate Consultant (2023)
• Harvard Extension School: Teaching
Assistant (2022-2023)
• Massachusetts Rivers Alliance:
Stormwater Technical Assistant Program
Intern (May-Nov 2022)
• Stockholm Environment Institute:
Equitable Transitions Intern (Summer
2022)
Education
• Master of Science in Sustainable Water
Management – Tufts University (2022)
• Bachelor of Arts in Politics, Religious
Studies – Pomona College (2019)
Publications
• “No Meter, No Benefits: How Renters
Were Left Behind in the Move Toward
Conservation and Customer Assistance
Programs” – New England Water
Wayfinder Issue 2 - 2024
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• City of Middleborough (MA) – Financial planning analysis and rate design, connection charge analysis • Town of Rockport, (MA) – Financial planning analysis and rate design • City of Salem, (MA) – Financial planning analysis and rate design • Town of Plymouth, (MA) – Financial planning analysis and rate design • Town of Londonderry, (NH) – Economic feasibility analysis • Town of Canton, (MA) – Financial planning analysis, rate design, affordability analysis, miscellaneous fees • Erie County Water Authority, (NY) – Financial planning analysis, affordability analysis • Kennebunkport, Kennebunk, and Wells Water District, (ME) – Cost of service • Town of Mansfield, (MA) – Financial planning analysis • Whitinsville Water Company, (MA) – Rate filing support, testimony review • Town of Rochester, (NH) – Stormwater feasibility study • Town of Rollinsford, (NH) – Financial planning analysis • City of Burlington, (VT) – Affordability program research • City of Somerville, (MA) – Affordability program design, rate design, public communication support • Town of Belmont, (MA) – Financial planning analysis
• Palm Beach County, (FL) – Peaking factor analysis, AMI data analysis • Town of Seabrook, (NH) – Financial planning analysis
• Bay Area Clean Water Agency (CA) – Financial impacts analysis • Towns of Rutland & West Boylston (MA) – Expert witness, financial analysis • State of Maine (ME) – Affordability study and affordability program design • City of Ontario (CA) – Financial planning analysis and cost of service • City of Berkeley (CA) – Financial planning analysis and cost of service Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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ORGANIZATION CHART
Organization Chart
OUR PRIOR RATE STUDY ENGAGEMENT PROVIDES US WITH A
COMPREHENSIVE UNDERSTANDING OF THE CITY’S NEEDS.
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.
Here, we have included an organizational chart showing the structure of our project team. Jeremy Tamargo will serve as the primary contact for the City@.
City of
Watsonville
PROJECT DIRECTOR
Kevin Kostiuk
Senior Manager
STAFF CONSULTANTS
Lindsay Roth
Nick Kennedy
Casey Goodwin
PROJECT MANAGER
Jeremy Tamargo, PE (OR)
Manager
LEADS
Morgan McCarthy, JD
Solid Waste
Harold Mitchell, PMP, ACP, PMI-PBA
Solid Waste
Gina DePinto, APR
Public Outreach Services
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City of Watsonville
Consulting Services for Water, Sewer,
and Solid Waste Utility Rate Study
COST PROPOSAL / JUNE 20, 2025
Principal Contact: Jeremy Tamargo, Manager
1 North Calle Cesar Chavez, Suite 102, Santa Barbara, CA 93103 P: 951-376-4405 / F: 828-484-2442 / E: [email protected] Docusign Envelope ID: 1289A2F7-35BD-459E-A7CC-0FE089547385
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COST
Cost
The following table provides a breakdown of our proposed fee for this project. This table includes the estimated level of effort required for completing each task. Expenses include costs associated with travel and a $10 per hour technology charge covering computers, networks, telephones, postage, etc.
Our scope of work includes the number of in-person and virtual meetings shown in the table below. Should the City require additional meetings or presentations to stakeholders, these can be arranged upon request at an added cost, which will be determined based on the scope and content of the meeting and/or presentation requested.
Virtual
In
Person
Kevin
Kostiuk
Morgan
McCarthy /
Harold
Mitchell
Jeremy
Tamargo
Gina
DePinto Consultant
1. Project Initiation and Management 1 4 4 6 12 $7,870
2. User Demand and Revenue
Requirements Analysis 1 4 2 12 24 $11,010
3. Development of Financial Plans 3 4 4 12 60 $19,880
4. Cost-of-service Analysis and Rate
Calculation 3 6 4 16 48 $18,980
5. Rate Model Development 1 6 4 16 36 $16,220
6. Reports 1 8 4 16 60 $22,420
7. Presentations 3 24 24 6 $20,535
8. Public Outreach and Prop 218
Assistance 5 20 45 $19,175
9. Capacity Fee Study 2 8 16 28 $13,880
10. Optional Task - Freedom County
Sanitation District 24 24 24 $20,080
11. Optional Task - Stormwater Utility 32 20 20 $19,940 Total Meetings / Hours 17 3 64 46 194 65 318 –
Hourly Billing Rates – – $340 $295 $295 $295 $230 –
Total Professional Fees – – $21,760 $13,570 $57,230 $19,175 $73,140 $186,075 Travel Expenses $3,915
Total Expenses $3,915
Total Fees & Expenses $189,990
Hours
Total Fees
Tasks & Expenses
Meetings
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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 8, 2025
TO: CITY COUNCIL
WRITTEN BY: SENIOR CIVIL ENGINEER SCHNEIDER
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AWARD CONTRACT TO CANNON CORPORATION FOR CONSTRUCTION
MANAGEMENT SERVICES ON THE WATER LINE REPLACEMENT BEACH
ST, UNION ST, LINCOLN ST PROJECT, IN AN AMOUNT NOT TO EXCEED $399,967
RECOMMENDATION:
Adopt a resolution awarding a professional services contract for construction management and inspection services for the Water Line Replacement Beach St, Union St, and Lincoln St Project, No. WA25-14834, in an amount not to exceed $399,967 to be paid from the Water Enterprise Fund, and authorize and direct the City Manager to execute said agreement.
BACKGROUND:
The City has a critical role in providing reliable water resources to existing residents and businesses by continuing the replacement of aging water mains. Staff recently bid and recommends that the Council award a construction contract for the Beach St, Union St, Lincoln St Main Line Replacement Project. During the construction phase, construction management and inspection services are needed to help ensure that infrastructure is installed properly, milestones and deadlines are met, public safety is continually upheld, and proper documentation is maintained throughout, which will help secure the integrity of construction for this important water main replacement project.
DISCUSSION:
In June 2024, a Request for Qualification Statements from Consulting Engineering Firms for On-Call Professional Engineering Services including Staff Augmentation, Design, Construction Management and Inspection was advertised. Statements of Qualifications were due July 11, 2024, at which time a total of
2 24 were received. The selection committee determined that 22 of those firms were qualified to provide on-call services for the variety of on-call services requested.
Cannon Corporation was selected from the list of qualified on-call Construction Management and Inspection firms for this particular main replacement project due to their specific experience related to the project’s scope of work and their prior experience working with the City. Cannon’s proposed construction management and inspection staff are very familiar with this type of project and will proactively work with City staff, the contractor, and the design engineer to anticipate project challenges before they impact the project cost, schedule, or quality of the finished product.
With this Project being located on a combination of busy arterial streets, including work within the Caltrans ROW, we understand that in addition to the installation of the improvements listed above, one of the key challenges of this project will be maintaining good public relations and minimizing the disturbance to motorists, businesses, and residents. Throughout construction of the project, Cannon will help ensure the contractor is meeting or exceeding the requirements of the contract, Caltrans encroachment permit, following approved traffic control plans, and any other contract requirements.
The City does not have sufficient in-house staff to provide the level of service required for this main replacement project, requiring support from consultant construction management and inspection experts. Staff therefore recommends that the City Council award an engineering consultant contract to Cannon Corporation, in an amount not to exceed $399,967.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
Approval of the professional services agreement is not a project pursuant to the California Environmental Quality Act (CEQA) because it can be seen with certainty based on substantial evidence in the record that the approval constitutes a government fiscal activity that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines section 15378(b)(4).) Further, the approval is an administrative activity that would not have the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment.
The CEQA determination for the water main replacement construction project itself is described in the construction contract award recommendation under a separate item before Council on this same meeting agenda. That project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15302 Class 2(c), because it involves the replacement of an existing public water utility pipeline with negligible or no expansion of capacity.
STRATEGIC PLAN:
Executing this consultant agreement is consistent with Strategic Plan goal:
Infrastructure & Environment
3 FINANCIAL IMPACT:
The total cost of this consultant agreement is not to exceed $399,967. There is sufficient budget in the Water Enterprise Fund under budget account 913-7831-14834.
ALTERNATIVE ACTION:
No reasonable alternatives known.
ATTACHMENTS AND/OR REFERENCES (IF ANY):
None.
Reso No. (CM)
Meeting Date: 070825 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AWARDING PROFESSIONAL SERVICES CONTRACT
TO CANNON CORPORATION, FOR CONSTRUCTION MANAGEMENT
AND INSPECTION SERVICES FOR THE WATER LINE REPLACEMENT
BEACH ST., UNION ST., AND LINCOLN ST., PROJECT, NO. WA-25- 14834, IN AN AMOUNT NOT TO EXCEED $399,967; AND AUTHORIZING
AND DIRECTING THE CITY MANAGER TO EXECUTE SAME
WHEREAS, § 3-5.500 of the Municipal code provides that an RFP or RFQ process is found to be an effective and efficient way to procure professional services and procurement of professional services shall be based on proposals solicited from capable professionals and be evaluated based on a combination of factors including education, training, experience and demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required; and WHEREAS, § 3-5.540 of the Municipal Code provides that contracts for professional services estimated to cost more than One Hundred Thousand and no/100ths ($100,000.00) Dollars must be awarded by the Council, and that the selection will be based on demonstrated competence and on the education, training and experience and professional qualifications necessary for the satisfactory performance of the services required, that cost will not be the only basis for selection, use a qualifications-based selection process as described in subdivision (a) of § 45271 of the California Government Code and negotiated as described in § 4528; and
WHEREAS, a Request for Qualifications (RFQ) was issued on June 4, 2024, asking for qualified consultants to assist the City for periodic and on-call professional engineering services (staff augmentation, design, construction management, construction inspection); and
1 All references to section numbers will be to the California Government Code
Reso No. (CM)
Meeting Date: 070825 2
WHEREAS, the deadline for submittal of Request for Statement of Qualifications was July 11, 2024; and
WHEREAS, a total of 24 firms submitted qualification statements; these statements were reviewed by City staff, and a list was developed, for which Cannon Corporation, a corporation, is on said list for construction management and construction inspection services; and
WHEREAS, the City Manager has recommended that the proposal from Cannon Corporation, a corporation, in an amount not to exceed $399,967, be accepted as the best response.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution awarding contract to Cannon Corporation, a corporation, for the Union Beach Lincoln Water Main Replacement Project, No. WA-25-14834, does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
2. The Council awards a contract to Cannon Corporation, for the Union Beach Lincoln Water Main Replacement Project, No. WA-25-14834, in an amount not to exceed $399,967.
Reso No. (CM)
Meeting Date: 070825 3
3. That the Contract for Consultant Services between the City of Watsonville and Cannon Corporation, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.
4. Consultant shall file FPPC form 700s and 805s pursuant to section 19 of the Contract.
5. The City Manager is hereby authorized and directed to execute said contract for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
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CONTRACT FOR CONSULTANT SERVICES BETWEEN
THE CITY OF WATSONVILLE AND CANNON CORPORATION
THIS CONTRACT, is made and entered into this ______________________ , by and between the City of Watsonville, a municipal corporation, hereinafter called “City,” and Cannon Corporation, hereinafter called "Consultant."
WITNESSETH
WHEREAS, the City needs to obtain certain professional, technical and/or specialized services of an independent contractor to assist the City in the most economical manner; and
WHEREAS, Consultant has the requisite skill, training, qualifications, and experience to render such services called for under this Contract to City.
THE PARTIES HEREBY AGREE AS FOLLOWS:
SECTION 1. SCOPE OF SERVICES. Consultant shall perform those services as specified in detail in Exhibit "A," entitled "SCOPE OF SERVICES" which is attached hereto and incorporated herein.
SECTION 2. TERM OF CONTRACT. The term of this Contract shall be from the execution date of this contract to June 30, 2026, inclusive.
SECTION 3. SCHEDULE OF PERFORMANCE. The services of Consultant are to be completed according to the schedule set out in Exhibit "B," entitled "SCHEDULE OF PERFORMANCE," which is attached hereto and incorporated herein. Consultant will diligently proceed with the agreed Scope of Services and will provide such services in a timely manner in accordance with the "SCHEDULE OF PERFORMANCE." SECTION 4. COMPENSATION. The compensation to be paid to Consultant including both payment for professional services and reimbursable expenses as well as the rate and schedule of payment are set out in Exhibit "C" entitled "COMPENSATION," which is attached hereto and incorporated herein.
SECTION 5. METHOD OF PAYMENT. Except as otherwise provided in Exhibit "C," each month, Consultant shall furnish to the City a statement of the work performed for compensation during the preceding month. Such statement shall also include a detailed record of the month's actual reimbursable expenditures.
SECTION 6. INDEPENDENT CONSULTANT. It is understood and agreed that Consultant, in the performance of the work and services agreed to be performed by Consultant, shall act as and be an independent Consultant and not an agent or employee of City, and as an independent Consultant, shall obtain no rights to retirement benefits or other benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it may have to any such rights.
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SECTION 7. ASSIGNABILITY. Consultant shall not assign or transfer any interest in this Contract nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Contract or any rights, duties or obligations arising hereunder shall be void and of no effect.
SECTION 8. INDEMNIFICATION.
To the full extent permitted by law (subject to the limitations of Civil Code section 2782.8 for any “design professional services” performed under this Contract), Consultant will indemnify, hold harmless, release and defend the City (including its officers, elected or appointed officials, employees, volunteers or agents) from and against any and all liability or claims (including actions, demands, damages, injuries, settlements, losses or costs [including legal costs and attorney’s fees])(collectively “Liability”) of any nature, to the extent arising out of, pertaining to, or relating to Consultant’s negligence, recklessness, or willful misconduct in the performance of this Contract. In no event shall the cost to defend charged to the Consultant exceed the Consultant’s proportionate percentage of fault. Consultant’s indemnification obligations under this Contract are not limited by any limitations of any insurance held by Consultant, including, but not limited to, workers compensation insurance.
SECTION 9. INSURANCE.
A. Errors and Omissions Insurance. Consultant shall obtain and maintain in full force throughout the term of this Contract a professional liability insurance policy (Errors and Omissions), in a company authorized to issue such insurance in the State of California, with limits of liability of not less than One Million Dollars ($1,000,000.00) to cover all professional services rendered pursuant to this Contract.
B. Auto and Commercial General Liability Insurance. Consultant shall also maintain in full force and effect for the term of this Contract, automobile insurance and commercial general liability insurance with an insurance carrier satisfactory to City, which insurance shall include protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any actual occurrence arising out of the performance of this Contract. The amounts of insurance shall not be less than the following:
(1) Commercial general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, such limit shall apply separately to each project Consultant performs for City. Such insurance shall (a) name City, its appointed and elected officials, and its employees as insureds; and (b) be primary with respect to insurance or self-insurance programs maintained by City and (c) contain standard separation of insured's provisions.
(2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.
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C. Workers’ Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Consultant shall be insured against liability for Workers’ Compensation or undertake self-insurance. Consultant agrees to comply with such provisions before commencing performance of any work under this Contract.
D. Proof of Insurance to City before Notice to Proceed to Work. Consultant shall satisfactorily provide certificates and endorsements of insurance to the City Clerk before Notice to Proceed to Work of this Contract will be issued. Certificates and policies shall state that the policy shall not be canceled or reduced in coverage without thirty (30) days written notice to City. Approval of insurance by City shall not relieve or decrease the extent to which Consultant may be held responsible for payment of damages resulting from services or operations performed pursuant to this Contract.
Consultant shall not perform any work under this Contract until Consultant has obtained the required insurance and until the required certificates have been submitted to the City and approved by the City Attorney. If Consultant fails or refuses to produce or maintain the insurance required by these provisions, or fails or refuses to furnish City required proof that insurance has been procured and is in force and paid for, City shall have the right at City's election to forthwith terminate this Contract immediately without any financial or contractual obligation to the City. As a result of such termination, the City reserves the right to employ another consultant to complete the project.
E. Written notice. Contractor shall provide immediate written notice if (1) any insurance policy required by this Contract is terminated; (2) any policy limit is reduced; (3) or any deductible or self insured retention is increased.
SECTION 10. NON-DISCRIMINATION. Consultant shall not discriminate, in any way, against any person on the basis of age, sex, race, color, creed, national origin or disability in connection with or related to the performance of this Contract.
SECTION 11. TERMINATION.
A. City and Consultant shall have the right to terminate this Contract, without cause, by giving not less than ten (10) days written notice of termination.
B. If Consultant fails to perform any of its material obligations under this Contract, in addition to all other remedies provided by law, City may terminate this Contract immediately upon written notice.
C. The City Manager is empowered to terminate this Contract on behalf of City.
D. In the event of termination, Consultant shall deliver to City copies of all work papers, schedules, reports and other work performed by Consultant and upon receipt thereof, Consultant shall be paid in full for services performed and reimbursable expenses incurred to the date of termination.
SECTION 12. COMPLIANCE WITH LAWS. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
governments. Consultant shall obtain and maintain a City of Watsonville business license during the term of this Contract.
SECTION 13. GOVERNING LAW. City and Consultant agree that the law governing this Contract shall be that of the State of California. Any suit brought by either party against the other arising out of the performance of this Contract shall be filed and maintained in the Municipal or Superior Court of the County of Santa Cruz.
SECTION 14. PRIOR CONTRACTS AND AMENDMENTS. This Contract represents the entire understanding of the parties as to those matters contained herein.
No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Contract may only be modified by a written amendment.
SECTION 15. CONFIDENTIAL INFORMATION. All data, documents, discussions or other information developed or received by or for Consultant in performance of this Contract are confidential and not to be disclosed to any person except as authorized by the City Manager or his designee, or as required by law.
SECTION 16. OWNERSHIP OF MATERIALS. All reports, documents or other materials developed or received by Consultant or any other person engaged directly by Consultant to perform the services required hereunder shall be and remain the property of City without restriction or limitation upon their use.
SECTION 17. COVENANT AGAINST CONTINGENT FEES. The Consultant covenants that Consultant has not employed or retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure the Contract, and that Consultant has not paid or agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fees, commissions, percentage, brokerage fee, gift, or any other consideration contingent on or resulting from the award or making of this Contract, for breach or violation of this covenant, the City shall have the right to annul this Contract without liability, or in its discretion, to deduct from the Contract price or consideration or otherwise recover, the full amount of such fee, commission, percentage fee, gift, or contingency.
SECTION 18. WAIVER. Consultant agrees that waiver by City or any one or more of the conditions of performance under this Contract shall not be construed as waiver of any other condition of performance under this Contract.
SECTION 19. CONFLICT OF INTEREST.
A. A Consultant shall avoid all conflict of interest or appearance of conflict of interest in performance of this Contract. Consultant shall file a disclosure statement, if required by City Council Resolution, which shall be filed within thirty (30) days from the effective date of this Contract or such Resolution, as applicable.
B. No member, officer, or employee of the City, during their tenure, or for one (1) year thereafter, shall have any interest, direct or indirect, in this Contract or the proceeds thereof and Consultant agrees not to allow, permit, grant, transfer, or Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
otherwise do anything which will result in such member, officer, or employee of the City from having such interest.
SECTION 20. AUDIT BOOKS AND RECORDS. Consultant shall make available to City, its authorized agents, officers and employees, for examination any and all ledgers and books of account, invoices, vouchers, canceled checks and other records or documents evidencing or related to the expenditures and disbursements charged to the City, and shall furnish to City, its authorized agents and employees, such other evidence or information as City may require with respect to any such expense or disbursement charged by Consultant.
SECTION 21. NOTICES. All notices shall be personally served or mailed, postage prepaid, to the following addresses, or to such other address as may be designated by written notice by the parties:
CITY
City Clerk’s Office
275 Main Street, Suite 400
Watsonville, CA 95076
(831) 768-3040
CONSULTANT
Cannon Corporation
1050 Southwood Drive
San Luis Obispo, CA 93401
(805) 544-7407
SECTION 22. EXHIBITS:
Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
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WITNESS THE EXECUTION HEREOF, on the day and year first hereinabove written.
CITY
CITY OF WATSONVILLE
BY ______________________________
Tamara Vides, City Manager
ATTEST:
BY ______________________________
Irwin I. Ortiz, City Clerk
APPROVED AS TO FORM:
BY ______________________________
Samantha W. Zutler, City Attorney
CONSULTANT
CANNON CORPORATION
BY_________________________________
Pat Riddell, Director of Construction
Management
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EXHIBIT "A"
SCOPE OF SERVICES
The scope of services is as follows:
As described in the letter dated April 11, 2025, from Matt Scholfield to Robert Schneider regarding the proposal for Construction Management and Inspection Services for the Waterline Replacement Project – E. Beach Street, Union Street, and Lincoln Street.
See attachment labeled EXHIBIT “A”.
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE
Services shall commence immediately upon execution of this Contract. All services performed under the provisions of this Contract shall be completed in accordance with the following schedule:
From the execution date of the contract to June 30, 2026.
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EXHIBIT “C”
COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed Three Hundred Ninety Nine Thousand Nine Hundred Sixty Seven dollars ($399,967). b. Basis for Payment. Payment(s) to Consultant for services performed under this Contract shall be made as follows and shall include payment for reimbursable expenses:
Payment in the form of check will be mail delivered within Net 30 days from invoice date.
c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this Contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation. .
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210624.02
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April 11, 2025
Robert Schneider, PE
Principal Engineer
City of Watsonville
Public Works & Utilities Department
250 Main Street
Watsonville, CA 95076
PROJECT: CONSTRUCTION MANAGEMENT & INSPECTION SERVICES FOR WATERLINE REPLACEMENT PROJECT – E BEACH ST, UNION ST, AND LINCOLN ST Dear Mr. Schneider:
The City of Watsonville (City) has a critical role in providing reliable water resources to existing and future residents and businesses. Confirmation that new infrastructure is installed properly, milestones and deadlines are met, public safety is continually upheld during construction operations, and proper documentation is maintained throughout will help secure the integrity of construction for this important water main replacement.
Cannon’s construction management and inspection team includes experienced construction managers, inspectors, construction engineers, and resident engineers. We are very familiar with this type of project and will proactively work with City staff, the contractor, and the design engineer to anticipate project challenges before they impact the project cost, schedule, or quality of the finished product.
With this Project being located on a combination of a busy arterial streets, including work within the Caltrans ROW, we understand that in addition to the installation of the improvements listed above, one of the key challenges of this project will be maintaining good public relations and minimizing the disturbance to motorists, businesses, and residents. We are experienced with projects located on busy roads and dense commercial and residential communities and will ensure the contractor is meeting or exceeding the requirements of the contract, Caltrans encroachment permit, following approved traffic control plans, complying with all provisions of the Caltrans encroachment permit, and any other contract requirements that can often be overlooked or neglected. We will be the City’s advocate and look forward to providing the level of service and leadership needed to successfully execute the project.
Sincerely,
Matt Scholfield, PE
Resident Engineer
EXHIBIT "A"
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WORK PLAN
Our work program for pre-construction, construction, and post-construction activities is detailed below.
Phase 1. Pre-Construction
Task 1.1 Contract Document Review
Our construction management team will thoroughly review plans, specifications, related reports, and documents pertinent to administering the construction of this project. In addition to facilitating our understanding of scope and sequencing of the work, this review will allow us to determine areas that may present challenges during construction. In conjunction with our preliminary review, we will review field conditions and photograph or video the work area and site conditions prior to the start of construction. We will discuss noted design issues or potential conflicts, along with questions that arise from our initial plan review with the City’s Project Manager and Engineer.
Task 1.2 Document Control Procedures and Coordination with City Staff We will establish a working relationship with City staff to implement procedures for the efficient processing and management of the project documents. Preliminary work items will be identified and coordinated at this time, including discussions submittals, required permits, and other documents or discussions pertinent for the contractor’s successful implementation of the contract work.
Upon award of the contract, we will review the contractor’s baseline schedule and other documents required prior to construction for general compliance with the contract documents. We will provide the City with recommendations based on the findings of the preconstruction documents review.
Task 1.3 Pre-Construction Conference
We will conduct a pre-construction conference with the City, involved agencies, utilities, and the contractor’s team as they prepare to mobilize for the project. The Resident Engineer and support staff will review plans and specifications with the contractor to facilitate understanding of the project. Prior to the conference, we will contact and invite various stakeholders; prepare an agenda with input from the City’s Project Manager; and prepare a detailed list of required submittals. Following the meeting, Cannon will prepare and distribute the pre-construction meeting minutes to all parties.
EXHIBIT "A"
pg. 02 of 12
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Phase 2. Construction
Task 2.1 On-Site Construction Management and Inspection Cannon will have a Resident Engineer assigned to the project who will oversee construction management operations. Their team will include a Construction Inspector who will be onsite periodically to monitor the construction operations and coordinate with City Staff and Caltrans staff and document of activities.
Task 2.2 Construction Inspection
During observation and monitoring of the quality of the construction work, we will provide the following services:
• Maintain on-site project reports for inspections, observations, and construction activities.
Reports will contain a record of weather, work on-site, number of workers, work accomplished, problems encountered, solutions agreed upon, and other similar relevant data per City requirements.
• Maintain photo and video record of construction progress, including pre- and post-construction records.
• Monitor construction activities to see that elements of project are furnished, installed, and constructed per contract documents. We will also prepare required notices of non-conformance when materials, construction installation process, or quality of work does not meet the requirements of the contract. Notices will be issued to the contractor stating the nature of the deviation and requiring the contractor to perform corrective action. Non-compliance issues will be documented with photographs and in writing.
• Oversee inspection and/or testing performed by the contractor as part of the contract work. • Conduct inspections and oversee inspections required for the project. • Recommend and coordinate testing as needed and in compliance with the QAP. • Review storm water BMPs for compliance with approved SWPPP/WPCP.
Task 2.3 Scheduling and Progress Meetings
Cannon will coordinate, review, and approve the contractor’s proposed schedule for the completion of the project. We will also review the contractor’s baseline schedule and update submittals for conformance with the master schedule and contract documents. In addition, we will prepare and distribute Weekly Statement of Working Day Reports to maintain an accurate and current record of contract time.
We will conduct periodic progress meetings (remotely via MS Teams) with the contractor and City representatives. The principal purpose of the project coordination meetings will be to review progress, schedule, and quality of work; notify the attendees of construction deficiencies, if applicable; address team coordination matters; and review maintenance of “as-built” drawings throughout construction.
EXHIBIT "A"
pg. 03 of 12
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Task 2.4 Change Order Management
Cannon will negotiate and coordinate the implementation of contract change orders during the construction process. We will compile change order supporting documentation, such as inspection reports, test reports, drawings, sketches, photographs, and other materials as required. We will review and evaluate the appropriateness of proposed change orders; advise the City as to their effect on the contract time and cost; and perform independent estimates of the proposed change order work, when necessary, as well as recommend approval or denial with approval by the City.
Task 2.5 Requests for Information (RFI) Management
Cannon will provide timely coordination of RFIs with the Engineer of Record and written responses to contractor. We will maintain the RFI log and records.
Task 2.6 Submittal Management
Cannon will provide timely coordination with the Engineer of Record for submittals of materials not supplied by the City. We will maintain the submittal log and records.
Task 2.7 Materials Testing
Cannon will coordinate with our proposed materials sampling and testing subconsultant, Earth Systems Pacific, to confirm sampling and testing frequencies are met. We will review the results of the testing materials. Following our review, we will make recommendations for the acceptance of work in general compliance of the contract documents or make recommendations if remedial actions are needed to correct unacceptable portions of the contractor’s work. The scope of anticipated services provided by Earth Systems Pacific is as follows:
• Collection of soil samples for laboratory testing and performance of laboratory tests to measure dry density – moisture content characteristics of various soil types (compaction curves) • Compaction testing during backfilling of underground utility trenches • Compaction testing of pavement subgrade, aggregate base, and asphalt pavement • Collection of asphalt cores for density testing
• Preparation of daily inspection reports summarizing the observed grading activities with the results of the in-place field compaction tests performed during the day Task 2.8 Progress Pay Estimates
Cannon will evaluate the contractor’s pay applications. We will verify that the quantities claimed are true and accurate using field measurements, materials tickets, extra work reports, and visual confirmation. We will prepare quantity calculation sheets for each bid item for inclusion in the project records. We will submit and recommend payment to the City’s project manager for each pay period.
EXHIBIT "A"
pg. 04 of 12
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Task 2.9 Project Records
Cannon will establish and implement procedures for review and processing of project documentation.
To maintain that records are organized, complete, and will allow for ease of document retrieval, we will utilize Procore, a construction oriented document control software, for clear and concise recording and distributing of project documents. Utilizing Procore, we will implement procedures for timely delivery of project documentation; expediting RFIs, submittals and change orders; and submittal, review, and approval of Progress Pay applications. Monitoring logs will be created to track survey records, RFIs, submittals, certified payroll, employee interviews, materials incorporated into project, materials testing, change orders, extra work reports, pay estimates, and potential claims. Cannon will provide a digital copy of all construction management activities from Procore at the end of the project for the City’s records.
Phase 3. Post-Construction
Task 3.1 Final Inspection and Punch List
Cannon will compile detailed “punch lists” with the City’s Project Manager and Engineer. We will oversee the complete performance of punch list items and final clean-up before the contractor moves off-site. We will coordinate final testing, documentation, and regulatory inspections.
Task 3.2 Coordinate Close-Out and Submittal of Final Documents Cannon will monitor the contractor’s, subcontractor’s, and designer’s progress to finalize and submit project records and documents. We will obtain required contract documents, lien releases, written warranties, and record drawings, and forward to the City for inclusion in the project files.
Task 3.3 Final Payment
Cannon will evaluate contractor’s final payment application, resolve outstanding matters, and provide approval and recommendation for final payment.
Task 3.4 Record Drawings
Cannon will gather all redlined drawings from the contractor for review and acceptance. The plans will contain all modifications or plan deviations encountered during construction. Cannon will submit plans to the engineer of record who will prepare the final as-built documents in PDF.
EXHIBIT "A"
pg. 05 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
210624.02
6 1050 Southwood Drive, San Luis Obispo, CA 93401
T 805.544.7407 F 805.544.3863
CannonCorp.us
ORGANIZATIONAL CHART
Construction
Inspector
Colin Campbell
City of Watsonville
Robert Schneider,
PE
Resident Engineer
Matt Scholfield, PE
Engineering Assistant
Marcia Bohac
Principal-in-charge
Pat Riddell, PE
Caltrans Inspector
05-24-N-UT-0595
David Ontiveros -
Water Services Support
Max Brandenburg
Inspection Support
Brian Post - Inspector
Jim Eshresman - Inspector
System Operations Support
Beau Kayser -Water Manager
Cesar Sanchez - Water Service Supervisor
EXHIBIT "A"
pg. 06 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
210624.02
7 1050 Southwood Drive, San Luis Obispo, CA 93401
T 805.544.7407 F 805.544.3863
CannonCorp.us
FEES
Fees are based on the rates per the following fee schedule and are provided on a time-and-materials basis. It is our understanding that this project qualifies for California Prevailing Wages. Based on review of the project documents, we have assumed part-time construction management and part-time inspection for the duration of the project, plus part-time pre-construction and post-construction services.
Total Estimated Cost of CM & Inspection Services: $399,967 NOTES:
1. Fees are based on a 130 working day (approximately 6-month) construction schedule.
2. Fees assumed part-time inspection for the duration of the project.
3. Fees include work during normal working hours. Eight (8) shutdowns have been assumed for tiein locations to be performed at night. An additional six (6) night shifts have been assumed for roadway crossings or other work that may be required outside of normal working hours. Other than the noted shutdowns periods, overtime, night, and weekend work are excluded, but available as an additional service.
4. Surveyor services, except for verification of contractor's survey by onsite inspection staff, are excluded, but available at an additional cost.
5. Hourly rates are subject to change.
EXHIBIT "A"
pg. 07 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
ID Task Name Duration Start Finish Predecessors
1 City of Watsonville Waterline Replacement - E Beach St, Union St, and Lincoln St
170 days Mon 7/7/25 Fri 2/27/26
2 ***City Issues Notice To Proceed to Contractor*** 0 days Mon 7/7/25 Mon 7/7/253 Pre-Construction Services 20 days Mon 7/7/25 Fri 8/1/25 2 4 Construction 130 days Mon 8/4/25 Fri 1/30/265 UNION ST 32 days Mon 8/4/25 Tue 9/16/256 Mobilize 3 days Mon 8/4/25 Wed 8/6/25 37 Install Traffic Control and BMP's 2 days Thu 8/7/25 Fri 8/8/25 6 8 Utility Locating 3 days Mon 8/11/25 Wed 8/13/25
7 9 Waterline Excavation, Installation, and Backfill 13 days Thu 8/14/25 Mon 9/1/25 8 10 Hydrostatic Testing and Disinfection 4 days Tue 9/2/25 Fri 9/5/25 9 11 Tie-in 2 days Mon 9/8/25 Tue 9/9/25 1012 Install and Connect New Services 3 days Wed 9/10/25 Fri 9/12/25 1113 Roadway Restoration 2 days Mon 9/15/25 Tue 9/16/25 1214 E BEACH ST 70 days Wed 9/17/25 Tue 12/23/2515 Install Traffic Control and BMP's 2 days Wed 9/17/25 Thu 9/18/25 1316 Utility Locating 5 days Fri 9/19/25 Thu 9/25/25 1517 Waterline Excavation, Installation, and Backfill 38 days Fri 9/26/25 Tue 11/18/25 1618 Hydrostatic Testing and Disinfection 4 days Wed 11/19/25Mon 11/24/251719 Tie-ins 8 days Tue 11/25/25 Thu 12/4/25 1820 Install and Connect New Services 8 days Fri 12/5/25 Tue 12/16/25 1921 Roadway Restoration 5 days Wed 12/17/25Tue 12/23/25 2022 LINCOLN ST 28 days Wed 12/24/25Fri 1/30/2623 Install Traffic Control and BMP's 2 days Wed 12/24/25Thu 12/25/25 2124 Utility Locating 2 days Fri 12/26/25 Mon 12/29/252325 Waterline Excavation, Installation, and Backfill 12 days Tue 12/30/25 Wed 1/14/26 2426 Hydrostatic Testing and Disinfection 4 days Thu 1/15/26 Tue 1/20/26 2527 Tie-in 2 days Wed 1/21/26 Thu 1/22/26 2628 Install and Connect New Services 4 days Fri 1/23/26 Wed 1/28/26 2729 Roadway Restoration 2 days Thu 1/29/26 Fri 1/30/26 2830 ***Construction Complete*** 0 days Fri 1/30/26 Fri 1/30/26 2931 Post-Construction Services 20 days Mon 2/2/26 Fri 2/27/26 30 ***City Issues Notice To Proceed to Contractor***
Pre-Construction Services
Construction
UNION ST
E BEACH ST
LINCOLN ST***Construction Complete***
Post-Construction Services
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2026
City of Watsonville
Waterline Replacement
E Beach St, Union St, and Lincoln St
PRELIMINARY CONSTRUCTION SCHEDULE
EXHIBIT "A"pg. 08 of 12 Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
Avila Beach Drive at US 101 Interchange Roundabout Cannon 84 Patrick Riddell, PE, CPII, QSD/P
Construction Manager / Senior Resident Engineer
Professional Registrations /
Certifications
• Civil Engineer, California,
No. 72034
• Certified Public
Infrastructure Inspector,
American Public Works
Association (APWA)
• Qualified SWPPP
Developer/Practitioner
• Caltrans Flagger
Certification
• Lane Closure System -
Caltrans
Education
• Bachelor of Science,
Environmental Engineering,
California Polytechnic State
University, San Luis Obispo,
California
• Caltrans Resident Engineer
Academy
Training
• Excavation Safety Training
for Competent Persons
(CPT), United Academy, ID:
1544359
• First Aid/CPR
Mr. Riddell has provided construction and design services for public and private industry projects for more than 23 years. He offers in-depth knowledge of the Caltrans Construction Manual, Local Assistance Procedures, and Standard Plans and Specifications. Mr. Riddell supervises overall project construction administration, pre-construction meetings, shop drawing review, inspections, and processing of pay requests. He helps resolve unforeseen conditions during construction, monitors schedules and budgets, oversees equipment and materials testing, reviews record drawings and certifications for accuracy, and confirms that work complies with contract documents and permit conditions. He coordinates activities with community and regulatory agencies and investigates and provides recommendations on contractor claims and change orders.
Ocean Boulevard Improvements, Pismo Beach, California: The City of Pismo Beach secured Emergency Relief funding from the Federal Highway Administration, administered locally through the Caltrans Department of Local Assistance to address the bluff damage and prevent continued bluff retreat. The City selected Cannon to provide construction management, inspection, materials testing, environmental and cultural resource monitoring, and administrative services. Mr. Riddell served as Principal-in-Charge.
Select Project Experience Summary
Mr. Riddell has served as Principal-in-Charge, Project Manager, or QA/QC Engineer, on the following Projects:
• Tank Farm and Orcutt Roundabout, San Luis Obispo, California • Golden Hill and Union Road Roundabout, Paso Robles, California • South Higuera LTL and Octagon Barn Project, San Luis Obispo, California • County of San Luis Obispo, Huasna Townsite Road Bridge Rehabiliation, Oak Shores, California
• SR 166 (West Main St). and Blosser Road Right Turn Lane and Signal Installation, Santa Maria, California
• Train Station Expansion Project, Grover Beach, California • Five Cities Drive Turn Signal Project, Pismo Beach,
California
• Theatre Drive Realignment, Paso Robles, California
• U.S. Highway 101 and State Route 46 East
Improvements, Paso Robles, California
• Highway 1 Improvements, Guadalupe, California
• West Grand Avenue Enhancement Grover Beach,
California
• Hwy. 1 Fiber Build, Monterey, California
• Hwy. 68 – Caltrans Encroachment Permit
Inspections Monterey County – District 5,
Monterey, California
Ditas Esperanza, PE
City of Paso Robles
Pat Riddell
demonstrated
foresight and
attention to detail
as well as a keen
ability to stay
abreast of timely cost
information.
Principal-in-Charge EXHIBIT "A"
pg. 09 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
Avila Beach Drive at US 101 Interchange Roundabout Cannon 85 Matt Scholfield, PE, CCM, CPII, QSD/P
Resident Engineer
Professional Registrations /
Certifications
• Civil Engineer, California,
No. 83926
• Certified Construction
Manager, No. 30640
• Certified Public
Infrastructure Inspector,
APWA
• Qualified SWPPP
Developer/Practitioner, No.
26102
• Safety Qualified Supervisor
Education
• Bachelor of Science, Civil
Engineering, California
State University, Long
Beach, California
Training
• OSHA 30; Confined Space
Training; Trenching &
Excavation Competent
Person; Fall Protection;
Lockout/Tagout; Hot Work
Permit
• ASME Rigging
Fundamentals Training
• First Aid/CPR Certified
Mr. Scholfield brings more than 16 years of experience in the heavy civil construction industry and more than 13 years as a project manager. He has a strong background managing self-performed work, and his technical engineering knowledge has created a valuable skill set for the safe, timely, and cost-effective completion of projects.
Golden Hill Road and Union Road Roundabout, Paso Robles, California:
To eliminate the need for extensive property acquisition, a one lane, dog boneshaped roundabout was designed to accommodate the increased traffic demand, including accommodations for oversized nine-axle transports. Cannon provided construction management, inspection, construction staking, and materials testing.
The scope of work included full depth reclamation; installing new waterlines, sewer, fiber conduits, streetlights, landscaping, curbs, gutters, sidewalks, and roadwork, and signage and striping. Mr. Scholfield served as Resident Engineer.
Select Project Experience Summary
Mr. Scholfield has served as Project Manager, Resident Engineer, Construction Manager or Construction Inspector on the following projects:
• Ocean Boulevard Improvements, Pismo Beach, California • Annual Striping and Markers Refreshment, Paso Robles, California • Pismo Paving Project 2022, Pismo Beach, California
• 2023 Pavement Rehabilitation Projects, Atascadero, California • Wright Way Improvements, Paso Robles, California
• Elena St. Slope Repairs, Morro Bay, California
• City Park Transit Hub, Morro Bay, California
• Salinas River Segment Recycled Water Project, Paso Robles, California • Oceano Community Services District Highway 1 Water Main Replacement Project, Oceano, California
• Construction Management for City of Morro Bay Kings and Blanca Tanks, Morro Bay, California
• Water Reclamation Facility Lift Stations and Off-site Pipelines, Anvil Builders, Inc., Morro Bay, California
• San Mateo Bridge Seismic Joint Replacements, San
Mateo, California
• Lost Hills Utility District Highway 46 Townsite Pipe
Relocation, Lost Hills, California
• Lost Hills Utility District Well No. 3 Equipping, Lost Hills, California
• Street Reconstruction Project, Huntington Park,
California
• Irvine Blvd. and Modjeska Sewer Upsizing and
Intersection Improvements, Irvine, California
• Gibson Mariposa Storm Drain and Fencing
Improvement Project, El Monte, California
Brad Hagemann, PE
Avila Beach Community
Services District
With the limited
time and many hats
that I needed to
wear for the CSD,
Matt truly became
the face of the Avila
CSD MBR project
team.
Avila Beach Drive at US 101 Interchange Roundabout
EXHIBIT "A"
pg. 10 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
Cannon
Colin Campbell Construction Inspector / Assistant Resident Engineer Professional Certifications
• PROCORE Certificate No:
2wesoae92foc
• OSHA Confined Space Entry
• Excavation and Trenching
Competent Person
• Caltrans Lane Closure System
Training
• Certified Flagger - American
Traffic Safety Services
Association
• First Aid/CPR
Education
• Associate of Science,
Architectural Design,
Pittsburgh Technical Institute,
Pittsburgh, Pennsylvania
Software Skills
• PROCORE
• AutoCAD
• Civil 3D
• Microsoft Suite
Mr. Campbell brings more than 15 years of experience as a Construction Project Manager and Inspector for heavy civil engineering projects and construction firms. He has successfully overseen projects and undertaken responsibilities in providing field inspections and observations, design, and project management related to water conveyance systems, including pipelines and canals; groundwater wells; recharge ponds; reservoirs; ground water filtration system; sewer systems and lift stations, storm drains; grading and drainage; and roads, streetscapes, parking lots, and railroads.
He has worked with numerous agencies, municipalities, and private sector clients throughout Central California, on residential and commercial land development, public infrastructure, energy industry, and transportation projects, such as City of Bakersfield, and Arvin Edison Water Storage District. He is thoroughly familiar with construction contract administration and scheduling, coordination of utilities, materials and soils testing, and client and stakeholder needs; effectively serving as onsite Owner’s Representative.
Construction Management – Shell Beach Road Streetscape Project - Phase 1, Pismo Beach, California: The City retained Cannon to provide construction management, inspection, materials testing, and administrative services. Rule 20A undergrounding work for this project was unique in that the contractor was responsible for the installation of all trenching, conduit, boxes, vaults, and all appurtenances related to the undergrounding work within the City ROW while PG&E was responsible for all work within private property, installation of all new wire, removal of overhead lines, poles and related appurtenances. Because this project involved Horizontal Directional Drilling (HDD) that crossed Caltrans right-of-way, Cannon facilitated conformance to their Encroachment Permit requirements and road settlement monitoring. Mr. Campbell served as Project Inspectore.
Select Project Experience Summary
Mr. Campbell has served as Construction Inspector or
Assistant Resident Engineer on the following projects:
• 2020-2021 and 2022-2023 Pavement Rehabilitation
Projects, Goleta, California
• Orcutt / Tank Farm Roundabout, San Luis Obispo,
California
• Measure K-14 Street Repair and Rehabilitation
Program Projects, Grover Beach, California
• Construction and Inspection Services, CA
SR 166 (West Main St.) and Blosser Road
Right Turn Lane and Signal Installation,
Santa Maria, California
• Airport Area Infrastructure
Improvements, Paso Robles, California
• Construction Management for Hwy. 46
East Water Main Relocations, Lost Hill
Utility District (LHUD), Lost Hills, California
Mr. Campbell brings more than 15 years of experience as a Construction Project Manager and Inspector for heavy civil engineering projects and construction firms. He has successfully overseen projects and undertaken responsibilities in providing field inspections and observations, design, and project management related to water conveyance systems, including pipelines and canals; groundwater wells; recharge ponds; reservoirs; ground water filtration system; sewer systems and lift stations, storm drains; grading and drainage; and roads, streetscapes, parking lots, and railroads.
He has worked with numerous agencies, municipalities, and private sector clients throughout Central California, on residential and commercial land development, public infrastructure, energy industry, and transportation projects, such as City of Bakersfield, and Arvin Edison Water Storage District. He is thoroughly familiar with construction contract administration and scheduling, coordination of utilities, materials and soils testing, and client and stakeholder needs; effectively serving as onsite Owner’s Representative.
Construction Management – Shell Beach Road Streetscape Project - Phase 1, Pismo Beach, California: The City retained Cannon to provide construction management, inspection, materials testing, and administrative services. Rule 20A undergrounding work for this project was unique in that the contractor was responsible for the installation of all trenching, conduit, boxes, vaults, and all appurtenances related to the undergrounding work within the City ROW while PG&E was responsible for all work within private property, installation of all new wire, removal of overhead lines, poles and related appurtenances. Because this project involved Horizontal Directional Drilling (HDD) that crossed Caltrans right-of-way, Cannon facilitated conformance to their Encroachment Permit requirements and road settlement monitoring. Mr. Campbell served as Project Inspectore.
Select Project Experience Summary
Mr. Campbell has served as Construction Inspector or
Assistant Resident Engineer on the following projects:
• 2020-2021 and 2022-2023 Pavement Rehabilitation
Projects, Goleta, California
• Orcutt / Tank Farm Roundabout, San Luis Obispo,
California
• Measure K-14 Street Repair and Rehabilitation
Professional Certifications
• PROCORE Certificate No:
2wesoae92foc
• OSHA Confined Space Entry
• Excavation and Trenching
Competent Person
• Caltrans Lane Closure System
Training
• Certified Flagger - American
Traffic Safety Services
Association
• First Aid/CPR
Education
• Associate of Science,
Architectural Design,
Pittsburgh Technical Institute,
Pittsburgh, Pennsylvania
Software Skills
• PROCORE
• AutoCAD
• Civil 3D
• Microsoft Suite Construction Inspector / Assistant Resident Engineer .
EXHIBIT "A"
pg. 11 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
Avila Beach Drive at US 101 Interchange Roundabout Cannon 89 Marcia Bohac
Office Engineer
Education
• Bachelor of Science, Human
Factors Engineering, Tufts
University, Medford,
Massachusetts
Ms. Bohac brings 25 years of experience in administrative positions for various industries. She is responsible for business services support, including contracts for both public and private entities and agencies. Ms. Bohac demonstrates effective teamwork, communication, and management. She prepares project reports and reviews and references drawings. She has experience analyzing and compiling pay applications and change orders. She has transferred RFIs and submittals to database platforms for client and team accessibility. Her specialty is streamlining processes and procedures to bring more efficiency to the work.
Tank Farm and Orcutt Roundabout Improvements, San Luis Obispo, California:
To improve traffic flow and safety at a critical intersection, this project included drainage improvements; overhead utility undergrounding; utility relocations and extensions; accessibility compliant sidewalks, ramps, and crosswalks; multi-modal improvements; traveled way realignment; new pavement, striping, markings, and signage; and numerous aesthetic enhancements. Cannon provided construction management, inspection, and materials testing for this project. Ms. Bohac served as Office Engineer.
Golden Hill Road and Union Road Roundabout, Paso Robles, California:
To eliminate the need for extensive property acquisition, a one lane, dog boneshaped roundabout was designed to accommodate the increased traffic demand, including accommodations for oversized nine-axle transports. Cannon provided construction management, inspection, construction staking, and materials testing.
The scope of work included full depth reclamation; installing new waterlines, sewer, fiber conduits, streetlights, landscaping, curbs, gutters, sidewalks, and roadwork, and signage and striping. Ms. Bohac served as Office Engineer.
Additional Project Experience
Ms. Bohac has served as Office Engineer or Business Services Administrator on the following projects:
• County of San Luis Obispo, Huasna Townsite Road Bridge Rehabiliation, Oak Shores, California
• County of San Luis Obispo 2023 Storm Damage Repair Work, San Luis Obispo, California
• Ocean Boulevard Improvements, Pismo Beach,
California
• Arterials 2023 Project, San Luis Obispo, California
• 2022 Paving Project, Pismo Beach, California
• Well 29 Rehabilitation Improvements Project,
Santa Ana, California
• CIP 2021, Huntington Park, California
• Budlong and Halldale Street Improvements,
Gardena, California
• Monterey Park Pass Road Transmission Main
Replacement, Monterey Park, California
EXHIBIT "A"
pg. 12 of 12
Docusign Envelope ID: 91D6446C-72A2-4464-8D0A-30E530CE1B61
1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 8, 2025
TO: CITY COUNCIL
WRITTEN BY: SENIOR CIVIL ENGINEER SCHNEIDER
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: CONSTRUCTION CONTRACT AWARD TO K.J. WOODS CONSTRUCTION, INC. FOR THE WATER LINE REPLACEMENT – BEACH ST, UNION ST, LINCOLN ST PROJECT IN THE AMOUNT OF $4,938,000 AND APPROVING
A BUDGET ALLOCATION FROM THE WATER ENTERPRISE FUND
RECOMMENDATION:
Adopt a resolution awarding a construction contract to K.J. Woods Construction, Inc. for the Water Line Replacement – Beach St., Union St., Lincoln St. Project, No. WA-25-14834, for the base bid amount of $4,696,715 and the add alternative for grinding and paving in the right of way for $241,285 for a total project amount of $4,938,000, approving an additional budget appropriation in the amount of $1,347,000 from the Water Enterprise Fund, and authorizing and directing City Manager to execute the contract.
BACKGROUND:
The City has an ongoing goal of replacing approximately 2.5 miles of existing water main per year. The City’s in-house Water Services crew replaces approximately 1.25 miles per year, requiring additional main replacements supported by contractors to stay on top of replacing the most critically aging pipelines throughout the water distribution area.
DISCUSSION:
The Public Works and Utilities Department has completed the public bidding of the Water Line Replacement – Beach St., Union St., Lincoln St. Project and it is ready to be awarded to the lowest responsive, responsible bidder.
2 In accordance with Title 7, Chapter 14 of the City of Watsonville Municipal Code, formal bids for the project were received and publicly opened on June 5, 2025, at 2:05pm through the City’s electronic bidding platform. The following bids were received:
Contractor Base Bid Add Alternate Total Bid
K.J. Woods Construction $4,696,715 $241,285 $4,938,000
Pacific Underground Construction $6,252,960 $219,350 $6,472,310 The lowest responsive, responsible bidder was determined to be K.J. Woods Construction, Inc. The engineer’s estimate for base bid was $3.8 million, which makes the low bid approximately 20% higher than the estimate which is within a reasonable range for award. It is also recommended that the add alternate be awarded, which is a cost adder for the contractor to perform a complete 2-inch grind and pave within City right of way which will provide a superior finished project for the City and complete rehabilitation area identified on the Pavement Management Plan ahead of schedule.
This project will address a mile of pipeline replacement on the City’s highest priority replacement schedule. It is important the City continue replacement progress to complete the water mains identified as highest priority replacements. The three largest breaks Water Services responded to last year were all in areas identified as high priority. Continued proactive replacement of the highest priority main lines will help reduce the number of high-volume main breaks in critical areas.
If awarded, the contractor will not be issued notice to proceed until after the Strawberry Festival. This work has also been coordinated with the upcoming Civic Plaza Project.
Therefore, staff recommends Council award both the base bid and add alternate to K.J. Woods for a total contract amount of $4,938,000.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
This project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15302 Class 2(c), because it involves the replacement of an existing public water utility pipeline with negligible or no expansion of capacity. Further, none of the exceptions to the CEQA exemption in Section 15300.2 apply. This is because the project will have no impact on environmental resources of hazardous or critical concern and will not result in or contribute to cumulative impacts. There are no unusual circumstances associated with the project that would result in a significant effect on the environment, nor would the project impact on scenic resources. The project is not situated on a hazardous waste site and would not impact on any historic resource. Therefore, the proposed project is exempt from CEQA.
STRATEGIC PLAN:
This project is consistent with Strategic Plan Goal:
Infrastructure & Environment
3 FINANCIAL IMPACT:
The total recommended contract award amount is $4,938,000. The base bid amount of $4,696,715 will be paid from the Water Enterprise Fund budget account 913-7831-14834. The add alternate amount of $241,285 will be paid by roads utilizing SB 1 funds under budget account 0306-924-7837-14313.
There is a total of $3,350,000 available in budget account 913-7831-14834, requiring an additional budget allocation of $1,347,000 from the Water Enterprise Fund to this budget account to award the base bid.
There is sufficient budget available in 0306-924-7837-14313 to award the add alternate.
ALTERNATIVE ACTION:
The council could elect not to award the add alternate which will result in only a trench line pavement repair over the work completed and would require this PMP road rehabilitation area to be addressed under a separate project. Alternatively, the Council could elect not to award the project, resulting in this high priority replacement continuing to degrade which could result in a large main break in a high-traffic area.
ATTACHMENTS AND/OR REFERENCES (IF ANY):
None.
Reso No. (CM)
Meeting Date: 07082025 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AWARDING CONSTRUCTION CONTRACT TO K.J.
WOODS CONSTRUCTION, INC., A CORPORATION, FOR THE WATER
LINE REPLACEMENT BEACH ST., UNION ST., LINCOLN ST.
PROJECT, NO. WA-25-14834, FOR THE BASE BID AMOUNT OF
$4,696,715 AND THE ADD ALTERNATIVE FOR GRINDING AND
PAVING IN THE RIGHT OF WAY FOR $241,285 FOR A TOTAL
PROJECT AMOUNT OF $ 4,938,000; AUTHORIZING $ 1,347,000
BUDGET APPROPRIATION FROM THE WATER FUND; AND
AUTHORIZING CITY MANAGER TO EXECUTE CONTRACT
WHEREAS, on April 21, 2025, Council adopted Resolution No. 100-25 (CM) approving plans and specifications and authorized calling for bids for the Water Line Replacement Beach St., Union St., Lincoln St. Project, No. WA-25-14834; and WHEREAS, the engineer’s estimate of probable construction cost was $3,800,000; and
WHEREAS, pursuant to Title 7, Chapter 14 of the City of Watsonville Municipal Code, the City issued a notice inviting bids and bids were received for the Water Line Replacement Beach St., Union St., Lincoln St. Project, No. WA-25-14834; and WHEREAS, bids that were submitted by the deadline, were publicly opened using our electronic bidding platform (OpenGov Procurement) on June 5, 2025, at 2:00 PM, and later tabulated by the Purchasing Officer for the consideration of the City Manager and submission to the City Council; and
WHEREAS, the City Manager has recommended that the bid from K.J. Woods Construction, Inc., a corporation, with Contractor License # 701797, for the Water Line Replacement Beach St., Union St., Lincoln Street Project, No. WA-25-14834, with a base bid in the amount of $4,696,715, be accepted as the lowest responsible and responsive bidder; and
Reso No. (CM)
Meeting Date: 07082025 2
WHEREAS, the City Manager is also recommending the add alternative be awarded in the amount of $241,285, which is a cost adder for the contractor to perform a complete 2-inch grind and pave within City right of way which will provide a superior finished project for the City and complete rehabilitation area identified on the Pavement Management Plan ahead of schedule.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. That the construction contract is hereby awarded to K.J. Woods Construction, Inc., a corporation, for the Water Line Replacement Beach St., Union St., Lincoln Street Project, No. WA-25-14834, for the base bid amount of $4,696,715 and the add alternative for grinding and paving in the right of way for $241,285 for a total project amount of $4,938,000 , in the form on file in the Office of the City Clerk.
2. That the additional budget appropriation of $1,347,000 from the Water Enterprise Fund [0720] to budget account 0720-913-7831-14834 is hereby authorized.
3. The City Manager is hereby authorized and directed to execute said construction contract for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney. ********************************
1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 8, 2025
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PUBLIC WORKS & UTILITES DIRECTOR GREEN RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AWARD A PURCHASE ORDER TO JAM SERVICES FOR THE PURCHASE OF
LED STREET LIGHT MODULES FOR CITYWIDE STREET LIGHT BULB REPLACEMENT, IN THE AMOUNT OF $1,325,563 PLUS ANY COST
ADJUSTMENTS NEEDED FOR ACTUAL FREIGHT AND SALES TAX COSTS
CHARGED AT TIME OF SHIPPING
RECOMMENDATION:
Adopt a resolution authorizing the award of purchase order for the procurement of LED streetlight modules for citywide street light bulb replacement, in the amount of $1,325,563, plus any cost adjustments needed for actual freight and sales tax costs charged at time of shipping, and authorizing and directing City Manager to execute the purchase order.
BACKGROUND:
The City conducted a streetlight assessment in the Fall 2024 to document the location and condition of all existing streetlights on arterial, collector, and residential streets (parking lots and parks not included).
During the Fall 2024 streetlight survey the City researched and evaluated LED streetlight products available on the market and determined that CREE – Guideway Series LED Streetlights met the City’s performance requirements most effectively. A Request for Bids was issued to procure these street light bulb materials. The bids have been received and is ready for award to the lowest responsive, responsible bidder.
DISCUSSION:
At the June 10, 2025 meeting, City Council adopted Resolution 150-25 (CM) authorizing the issuance of a formal Request for Bid for the procurement of LED Street Light Materials. The street light materials can
2 have a long-lead procurement timeframe, so it was determined that procuring the materials would be completed ahead of the installation project which will be bid separately.
In accordance with Article 4 of Chapter 5 of Title 3, of the Watsonville Municipal Code, formal bids for the streetlight material procurement were received and publicly opened on Wednesday July 2, 2025 at 4:00pm through the City’s electronic bidding platform. The following bids were received:
Contractor Base Bid Total Add
Alternates
Total Bid
JAM Services $1,445,215 $1,953,687 $3,398,902
NightSwitch, LLC Non-responsive Non-responsive Non-responsive The lowest responsive, responsible bidder was determined to be JAM Services, with the base bid in the amount of $1,445,215. The engineer’s estimate for this materials purchase was $1.3 million. The Request for Bids included Add Alternate bid items for extended warranties and “Smart Streetlight Technology” that can be used to dim and monitor streetlight performance to help the City provide more proactive streetlight maintenance compared to the current reactive service provided to failure notices from residents. The reduce the cost and stay within budget, the material quantities have been reduced to reflect no spare bulbs be purchased, purchasing only the needed replacement quantity.
Therefore, staff recommends that Council award the purchase order to JAM Services in the amount of $1,325,563 which includes a 10 year warranty , and only on/off photocell capability.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
This purchase of replacement street light bulbs is not a project under CEQA, as purchasing materials or parts does not have the potential to result in either direct physical change or reasonably foreseeable indirect physical change in the environment and is exempt pursuant to CEQA Guidelines Section 15378(b)(2). This contract does not include the installation of the materials which will also be exempt under Section 15301, Class 2 (c) as the replacement of existing street light bulbs will not increase existing size, location, or capacity.
STRATEGIC PLAN:
Awarding this purchase order is consistent with Strategic Plan Goal:
Infrastructure & Environment
FINANCIAL IMPACT:
This street light bulb purchase order will be funded by Measure R Account No. 0201-975-7839-15221.
ALTERNATIVE ACTION:
3 No reasonable alternatives are known at this time. City Council could elect not to award the purchase order for which City staff would continue to use its on-call streetlight maintenance contract for repairs asneeded.
ATTACHMENTS AND/OR REFERENCES (IF ANY):
None.
Reso No. (CM)
Meeting Date:0770825 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AWARDING PURCHASE WITH JAM SERVICES FOR
THE PROCUREMENT OF REPLACEMENT LED STREET LIGHT BULBS,
IN THE AMOUNT OF $1,325,563 PLUS ANY COST ADJUSTMENTS
NEEDED FOR ACTUAL FREIGHT AND SALES TAX CHARGED AT THE
TIME OF SHIPPING; AND AUTHORIZING AND DIRECTING CITY
MANAGER TO EXECUTE THIS PURCHASE ORDER INCLUDING ANY
EXTENSIONS OR AMENDMENTS THEREOF IN ORDER TO
IMPLEMENT THE PURCHASE (TO BE FUNDED BY MEASURE R
FUNDS)
WHEREAS, bidding requirements and a reference to procedures for the purchase of supplies, equipment, and non-personal contractual services and the sale of personal property are set forth in Chapter 3-5 of the Watsonville Municipal Code; and WHEREAS, pursuant to Article 4 of Chapter 5 of Title 3of the Watsonville Municipal Code, the City issued a Request for Bids and electronic bids were received for the procurement of street light replacement LED bulbs; and
WHEREAS, bids that were submitted by the deadline were publicly opened live online in the City’s electronic bidding procurement portal on Wednesday July 2, 2025, at 4:05pm, and later tabulated by the Purchasing Officer for the consideration of the City Manager and submission to the City Council; and
WHEREAS, the City Manager has recommended that the bid from Jam Services, in the amount of $1,325,563, be accepted as the lowest responsive, responsible bid.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Adopting a resolution approving the purchase of materials does not meet CEQA’s definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment in accordance with Section 15378(b)(2).
Reso No. (CM)
Meeting Date: 070825
2 2. This purchase of replacement LED street light bulbs from Jam Services, in an amount not to exceed $1,325,563, plus any cost adjustments needed for freight and sales tax charged at the time of shipping, is hereby authorized.
3. That the City Manager is hereby authorized and directed to execute said Purchase Order agreement for and on behalf of the City of Watsonville, with minor revisions that may be approved by the City Manager and the City Attorney, including any extensions or amendments thereof in order to implement this purchase. ********************************
1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 8, 2025
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PUBLIC WORKS DIRECTOR FONTES
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE FIFTH AMENDMENT TO CONTRACT WITH CSG CONSULTANTS, INC. FOR ON CALL ENGINEERING PLAN CHECK REVIEW SERVICES INCREASING COMPENSATION IN THE AMOUNT OF $100,000 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $425,000.
RECOMMENDATION:
Staff recommend the Council adopt a resolution approving the Fifth Amendment to the contract with CSG Consultants, Inc., for on-call engineering plan check review services, increasing the contract by $100,000 for a new contract total not to exceed $425,000
BACKGROUND:
Engineering plan check reviews of private development projects has increased over the past few years and additional reviewers are needed to maintain a timely review of projects. As a result, on September 28, 2020, the City Manager executed an agreement with CSG Consultants, Inc. for on-call engineering plan check review services in an amount not to exceed $75,000 with an expiration date of December 31, 2023.
On January 25, 2022, the City Council adopted Resolution No. 7-22 (CM) approving the First Amendment and amending the contract compensation to provide an additional $100,000 for a new contract total amount not-to-exceed $175,000.
On December 12, 2023, the City Council adopted Resolution No. 232-23 (CM) approving the Second Amendment, extending the contract to June 30, 2024, and updating the Engineering Hourly Rates for 2024.
On June 25, 2024, the City Council adopted Resolution No. 111-24 (CM) approving the Third Amendment extending the contract to June 30, 2025.
2 On February 11, 2025, the City Council adopted Resolution No. 24-25 (CM) approving the Fourth Amendment, increasing the contract compensation in the amount of $150,000 for a new contract total amount not-to-exceed $325,000 and extending the contract term to June 30, 2026.
DISCUSSION:
The Public Works and Utilities Department’s Engineering Division has a vacancy in the development review process that has been vacant since June 2024. Since then, CSG Consultants, Inc. has provided extensive engineering plan check review services on larger residential projects, including the Hillcrest and Sunshine Gardens Subdivisions. As these two subdivisions have been going on for several years and require extensive review and oversite, staff who want to retain CSG Consultants Inc as they are familiar with the projects.
Staff recommend that the City Council approve this Fifth Amendment to the contract, increasing compensation by $100,000 for a total contract amount not to exceed $425,000 for on-call engineering plan check review services.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
No additional California Environmental Quality Act (CEQA) review is required for the Pavement Program Management Services. On June 25, 2024, the City Council declared On Call Engineering Plan Review Services as exempt in accordance with CEQA Guidelines Section 15378 (b)(5), as it does not meet CEQA’s definition of a “project”. Further, the approval of the Fifth Amendment to Contract for On Call Engineering Plan Review Services is an administrative activity that would not have the potential to either (1) cause a direct physical change in the environment, or (2) cause a reasonably foreseeable indirect physical change in the environment. Therefore, no CEQA action is required at this time.
STRATEGIC PLAN:
This amendment is consistent with the Strategic Plan Goals:
2. – Infrastructure & Environment
3. – Housing
FINANCIAL IMPACT:
The costs associated with this contract are paid for by developer fees for each specific project, as appropriate.
ALTERNATIVE ACTION:
Not approving the amendment would place an additional burden on City staff and slow the development review efforts which may cause delays
ATTACHMENTS AND/OR REFERENCES (IF ANY):
None.
1 Reso No. ______ (CM)
Reference: Reso No’s 7-22, 232-23, 111-24, and 24-25 (Amend) Meeting Date: 062425 SWZ ______ TV ______ PWU ______
RESOLUTION NO. (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING FIFTH AMENDMENT BETWEEN THE
CITY OF WATSONVILLE AND CSG CONSULTANTS, INC., A
CORPORATION, FOR ON-CALL ENGINEERING PLAN CHECK REVIEW
SERVICES INCREASING THE CONTRACT COMPENSATION TO
PROVIDE AN ADDITIONAL $100,000 FOR A NEW CONTRACT TOTAL AMOUNT NOT-TO-EXCEED $425,000, AND AUTHORIZING AND
DIRECTING THE CITY MANAGER TO EXECUTE THE SAME.
WHEREAS, on September 28, 2020, the City executed a contract for Consultant Services with CSG Consultants, Inc., to provide On-Call Engineering Plan Check Review Servies, with a contract term ending December 31, 2023, in an amount not to exceed $75,000; and
WHEREAS, on January 25, 2022, the Council adopted Resolution No. 7-22 (CM) approving the First Amendment increasing the contract compensation to provide an additional $100,000 for a new contract total amount not to exceed $175,000; and WHEREAS, on December 12, 2023, Council adopted Resolution No 232-23 (CM) approving the Second Amendment, extending the contract term from December 31, 2023, to June 30, 2024, and updating the Engineering Hourly Rates for 2024; and WHEREAS, on June 25, 2024, Council adopted Resolution No. 111-24 (CM) approving the Third Amendment, extending the contract term from June 30, 2024, to June 20, 2025; and
WHEREAS, on February 11, 2025, Council adopted Resolution No. 24-25 (CM) approving the Fourth Amendment, increasing the contract compensation in the amount of $150,000 for a new contract total amount not-to-exceed $325,000, updating the Engineering Hourly Rates for FY 2025-2026, and extending the contract term to June 30, 2026; and
2 Reso No. (CM)
Reference: Reso No’s 7-22, 232-23, 111-24, and 24-25 (Amend) Meeting Date: 062425
WHEREAS, this Fifth Amendment will increase the contract compensation in the amount of $100,000 for a new contract total amount not-to-exceed $425,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. No additional California Environmental Quality Act (CEQA) review is required for the fifth contract amendment with CSG Consultants. On June 25, 2024, the City Council declared On Call Engineering Plan Review Services as exempt in accordance with CEQA Guidelines Section 15378 (b)(5), as it does not meet CEQA’s definition of a “project”. Further, the approval of the Fifth Amendment to Contract for On Call Engineering Plan Review Services is an administrative activity that would not have the potential to either (1) cause a direct physical change in the environment, or (2) cause a reasonably foreseeable indirect physical change in the environment. Therefore, no CEQA action is required at this time.
2. This Fifth Amendment between the City of Watsonville and CSG Consultants, Inc., a corporation, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.
3. The City Manager is hereby authorized and directed to execute said Fifth Amendment for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
********************************
1 FIFTH AMENDMENT TO CONSULTANT SERVICES CONTRACT
BETWEEN THE CITY OF WATSONVILLE
AND CSG CONSULTANTS, INC
THIS FIFTH AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and CSG CONSULTANTS, INC., (“Consultant”) this day of ______________________. The City and Consultant agree as follows:
RECITALS
WHEREAS, the City and Consultant have previously executed a Consultant Services Contract to provide On-Call Engineering Plan Check Review services dated September 28, 2020; and
WHEREAS, the original contract was in the amount of $75,000 with an expiration date of December 31, 2023; and
WHEREAS, on January 25, 2022, the City Council adopted Resolution No. 7-22 (CM) approving the First Amendment to Contract and amending the contract compensation to provide an additional $100,000, for a total contract compensation not to exceed $175,000; and
WHEREAS, on December 12, 2023, the City Council adopted Resolution No. 232- 23 (CM) approving the Second Amendment to Contract and amending the term of contract and extending the contract to June 30, 2025, and amending the contract compensation to update the Engineering Hourly Rates for 2024; and WHEREAS, on June 25, 2024, the City Council adopted Resolution No. 111-24 (CM) approving the Third Amendment to Contract and amending the term of contract and extending the contract to June 30, 2025; and
Docusign Envelope ID: 5F29FA28-CCB3-460A-B015-E9038D3B0F47
2 WHEREAS, on February 11, 205, the City Council adopted Resolution No. 24-25 (CM) approving the Fourth Amendment to Contract and amending the contract compensation to provide an additional $150,000, for a total contract compensation not to exceed $325,000, and extending the contract term to June 30, 2026; and WHEREAS, the City has added additional compensation; and WHEREAS, the Fifth Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.
NOW, THEREFORE, the City and the Consultant agree that the Contract shall be amended as follows:
Section 4 is hereby amended to read:
"Section 4 and Exhibit "C" both entitled "Compensation" of the Contract, are hereby amended to provide an additional amount of compensation of One Hundred Thousand Dollars ($100,000) for professional services.
All other terms and conditions of the Contract dated September 28, 2020, as amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment to Consultant Services Contract the day and year first hereinabove written.
CITY OF WATSONVILLE CSG CONSULTANTS, INC.
By___________________________ By______________________________ Tamara Vides, City Manager Cyrus Kianpour, President
ATTEST:
By___________________________
Irwin I. Ortiz, City Clerk
Docusign Envelope ID: 5F29FA28-CCB3-460A-B015-E9038D3B0F47
3 APPROVED AS TO FORM:
By____________________________
Samantha W. Zutler, City Attorney
Docusign Envelope ID: 5F29FA28-CCB3-460A-B015-E9038D3B0F47
1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 8, 2025
TO: CITY COUNCIL
WRITTEN BY: SR. UTILITIES ENGINEER BERRY
RECOMMENDED BY: DEPUTY CITY MANAGER CALUBAQUIB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE SECOND AMENDMENT TO CONTRACT FOR LANDSCAPE
ARTCHITECTURAL DESIGN SERVICES WITH SSA LANDSCAPE
ARCHITECTS, INC. FOR THE REVITALIZATION OF THE WATSONVILLE
CITY PLAZA PROJECT ADDING TO THE SCOPE OF SERVICES AND
INCREASING THE CONTRACT COMPENSATION AMO
RECOMMENDATION:
It is recommended that the City Council adopt a resolution approving a Second Amendment to the contract for landscape architectural design services with SSA Landscape Architects, Inc. for the Revitalization of the Watsonville City Plaza Project, adding to the scope and services, increasing the contract compensation amount by $121,154.00, to a contract total in an amount not to exceed $714,916.00, and extending the contract term to June 30, 2027; finding that no supplemental environmental review or addendum is required per CEQA Guidelines sections 15162 and 15164; and authorizing the City Manager to execute the Second Amendment.
BACKGROUND:
On February 21, 2023, the City Council approved a contract with SSA Landscape Architects, Inc. through Resolution No. 34-23 to develop design drawings for the City Plaza in the amount not to exceed $499,924. The contract with SSA Landscape Architects, Inc. is grant funded through the State of California’s Statewide Park Development and Community Revitalization Program for landscape architectural design and consultant services on the City Plaza Revitalization Project.
The Watsonville City Plaza is on the National Register of Historic Places, with protected features including a bandstand (gazebo), water fountain, drinking fountain, and two artillery cannons. The proposed project would renovate the historic gazebo structure to preserve it for the enjoyment of
2 future generations. Additional proposed site improvements include new landscaping, lighting, and permeable paving. An Initial Study/Mitigated Negative Declaration has been prepared for this project, in accordance with the provisions of the California Environmental Quality Act (CEQA).
Additionally, an Administrative Use Permit with Design Review and Environmental Review (PP2019-448) for the City Plaza Expansion and Renovation Project has been approved by the City’s Zoning Administrator.
On July 9, 2024, the City Council approved a First Amendment, through Resolution 140-24, to increase compensation by $93,838 and extend the contract completion date to June 30, 2026. This amendment provided additional funding for the following design items. Provide electrical service upgrades for new site lighting. Electrical upgrades will include lighting for the installation of four art sculptures with a seating area. Conduct a forensic investigation on the Bandstand (gazebo) to better understand how it was constructed and how to repair it. Based on the testing and investigation, additional design work was required to repair the Bandstand (gazebo) and ensure the structure is safe for public access.
Amendment No. 1 placed the new contract amount at $593,762.
DISCUSSION:
SSA Landscape Architects, Inc., continues to provide the necessary services to complete the drawings for permit submittal and then bidding. As the work progresses, the scope expands to include items that were either not in the original master plan, required for permit submittal, or were a requested addition by the City.
• Proposed Trash Enclosure: A new trash enclosure was discussed to be built at an adjacent parking lot.
Surveying was done for the location, and drawings per City Standards started. It was determined that the City had other plans for that location, and upon review with the Planning and Public Works Department concluding that an enclosure was not needed by the plaza, plans to include the trash enclosure into the project were abandoned. Details for this feature were not included in the IS/MND. • Coordination with City Contracted Artist: This scope required coordination with the artist’s structural engineer for incorporation of the details into the drawings. • Revised Stage Design: The stage height was raised to 30” and the ADA ramp was relocated to the back of the structure. This change increases the height of the stage from 18” as identified in the IS/MND, but does not alter the location or general length and width as described in the IS/MND. • Site Plan and Detail Changes due to Stormwater Concerns: The Consultant and the City continue to refine stormwater design to meet Water Resource Board requirements while delivering aesthetically acceptable and functional features.
• Expansion of Electrical Work: An electrical enclosure needed to be added to the project, and pedestrian light footings needed to be redesigned to meet geotechnical requirements.
3 The compensation increase in this Second Amendment covers both the landscape architect fees and their consultants. And they also include allowances for Optional Additional Services if needed. • Expanded Construction Administration Allowance by the Historical Subconsultant specific to the Gazebo reconstruction.
• Bid Alternate formatting and coordination allowance.
An extension of the contract completion date is also necessary to extend the termination date of the contract from June 30, 2026 to June 30, 2027.
Staff is seeking City Council approval for $121,154.00 to be added to the SSA Landscape Architects, Inc. contract through Amendment 2.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
On December 13, 2019, an Administrative Use Permit and Design Review Permit with Environmental Review (PP2019-448) was approved for the Watsonville City Plaza Revitalization project by the City of Watsonville’s Zoning Administrator with no substantial evidence that the project will have a significant effect on the environment in accordance with Public Resources Code section 21080(c).
In November 2019, a Notice of Determination with a Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Plan (MMRP) was filed with the Santa Cruz CEQA Clerk and Office of Planning and Research by the Zoning Administrator pursuant to CEQA provisions.
The CEQA documentation prepared for the Watsonville City Plaza Revitalization Project serves as the appropriate environmental documentation for the proposed Second Amendment to Contract and satisfies all requirements of CEQA. No supplemental environmental documentation is required by CEQA at this time pursuant to CEQA Guidelines section 15162, because no substantial changes are proposed to the Project with this Second Amendment to Contract and no new information of substantial importance has been identified. An addendum will be filed pursuant to CEQA Guidelines section 15164 due to technical changes in the proposed height of the stage and the addition of an electrical enclosure as proposed through this Second Amendment to Contract, and this Second Amendment to Contract does not authorize any actions that will create any environmental impact that have not already been analyzed.
STRATEGIC PLAN:
This recommendation is consistent with the following Council Strategic Goals:
2) Infrastructure & Environment: Renovation of significant City infrastructure 6) Community Engagement & Well-Being: Parks support the community’s well-being
4 FINANCIAL IMPACT:
The State of California Statewide Park Development and Community Revitalization Grant was appropriated to account 0260-337-7361-09053 in the amount of $3,349,595. There are sufficient funds available to pay for Amendment No. 2 from this account number.
ALTERNATIVE ACTION:
The Council may choose not to accept this second amendment, and the remaining proposed scope of work will not be completed.
ATTACHMENTS AND/OR REFERENCES (IF ANY):
Attachment 1: SSA Design Services Additional Service 02 dated May 30, 2025
EXHIBIT A – SCOPE OF WORK
May 30, 2025
ADDITIONAL SERVICE 02:
EXPANDED DESIGN SERVICES FOR WATSONVILLE CITY PLAZA PARK This scope of work is proposed as an additional service to the original scope of work dated February 07, 2023. This amendment requests additional fees for design of various site elements including work for a proposed trash enclosure, coordination with City contracted artist to locate (4) new art installations at each corner of the site, revised stage design to incorporate a ramp at the rear of the stage, revised and expanded Electrical design, additional Gazebo work necessitated by forensic study of the existing structure, and plan modifications necessary to conform to stormwater requirements.
This expanded scope of work includes coordination with the City and project design team and design of the elements noted above and as detailed below.
Task 1: Includes various scope additions and refinements as follows:
Proposed trash enclosure: Design work had been performed for a new trash enclosure located at the site of the existing enclosure to be removed. This location was later moved to a remote lot adjacent to the project site with work performed to locate the enclosure, refine the design to fit the new site and coordinate utilities in support of the structure. The trash enclosure was ultimately abandoned.
Coordination with City contracted artist: Initial Art work coordination in support of the City Plaza Park renovation was included in the previous additional service proposal, however this scope has expanded to coordinate with and incorporate Structural design provided by the artists’ Structural Engineer.
Revised stage design: Stage design was revised from 18” high based on the approved Conceptual plan with details for the 18” high stage mostly complete. The stage height was revised to +/- 30” requiring redesign of the stage element. Additional revisions included relocating the accessible ramp to the rear of the stage as opposed to the side of the stage as originally designed.
Electrical Enclosure Design: Site electrical was intended to be located in the gazebo basement. Due to the required Structural repairs and accessibility considerations, it was determined that the electrical equipment would be better located on site, outside of the gazebo. SSA performed detailing for the exterior enclosure.
Site Plan and Detail Changes Due to Stormwater Concerns: With a goal of reducing stormwater mitigation to Tier 1 requirements, changes to the project Site Plan and detail revisions are required. Changes include replacing existing asphalt pavement and all the Attachment 1
Watsonville City Plaza Park
Additional Service 02
230002.00
May 30, 2025
majority of new impervious pavement to pervious concrete. SSA will follow revisions through the drawing set to make sure plan callouts and detailing are coordinated.
Bi-weekly Coordination Meetings: SSA has regularly attended roughly bi-weekly coordination meetings with City staff. These have proven to be extremely valuable and a productive use of time, however the meetings have exceeded the coordination time allowed in the approved contract.
Additional work performed by project subconsultants are as follows:
Task 2: Expanded Electrical Services as detailed in the attached additional service request by Aurum Consulting Engineers. Services are to be performed at subconsultant cost plus 10%.
Task 3: Expanded Architectural Services as detailed in the attached additional service request by Page & Turnbull. Services are to be performed at subconsultant cost plus 10%.
Task 4: Expanded Structural Engineering Services as detailed in the attached additional service request by MME Structural. Services are to be performed at subconsultant cost plus 10%.
Task 5: Expanded Civil Engineering Services as detailed in the attached additional service request by MME Civil. Services are to be performed at subconsultant cost plus 10%.
Time for facilitating and coordinating the above efforts is also included in this additional service amendment. Note that majority of the work included in this request is for costs previously incurred.
FEE PROPOSAL
The fee for the above Scope of Work is as follows:
Task One: SSA expanded services $40,190.00
Task Two: Expanded Electrical services (cost + 10%) $ 7,420.00 Task Three: Expanded Architectural services (cost + 10%) $ 5,500.00 Task Four: Expanded Structural Engineering services (cost + 10%) $ 6,600.00 Task Five: Expanded Civil Engineering services (cost + 10%) $16,060.00 Additional Service 02 Total: $75,770.00
Optional Additional Service Allowances
Task Six: Expanded Construction Administration allowance $35,000.00 Task Seven: Bid Alternate formatting and coordination allowance $10,384.00
These services are proposed to be provided on an hourly not to exceed basis. Fees will be billed monthly based on the actual hours of effort for each task.
Attachment 1
Watsonville City Plaza Park
Additional Service 02
230002.00
May 30, 2025
SSA Landscape Architects, Inc. City of Watsonville
Christian Harris Robert L. Berry
Associate Principal Sr. Utilities Engineer
CRLA #6217 Parks and Community Services
____________________________ ____________________________ Christian Harris Robert L. Berry
Dated: 05/30/2025 Dated:
____________________________ ____________________________ Attachment 1
Fee Adjustment Memo
April 04, 2025
Mr. Christian Harris
Associate Principal
SSA
303 Potrero St, suite 40-C
Santa Cruz, CA 95060
Re: Watsonville City Plaza – Electrical Revisions
ACEMB Job No. 22-605.01
Reason for fee adjustment:
Revise electrical drawings to demo all electrical infrastructure in the gazebo basement and relocate distribution panel to the proposed electrical yard, along with the communication cabinet. Review and address City comments based on the revised design drawings.
Fixed Fee $6,745.00
We will not proceed with the work until we receive this signed document.
Fee Adjustment Scope of Work:
a. Coordination with A/E team.
b. Modify and issue revised Construction Documents.
c. Revise voltage drop calculations.
d. Relocate electrical equipment and extend circuits as needed.
This fee adjustment letter shall serve as an amendment to the original contract “proposal” agreement. The original agreement shall not be affected and shall continue in full force and effect in accordance with its terms. The above reasons for fee adjustment shall be agreed upon by the signatory with the execution of this contract as adhering to the same provisions of the original contract agreement terms.
If everything is in order, please acknowledge your acceptance by signing this letter.
Jhim Handrex Meza, P.E.
Electrical Engineer II
[email protected]
________________________________ ________________________________ Signature Printed Name
________________________________ ________________________________ Title Date
Attachment 1
170 MAIDEN LANE, 5TH FLOOR SAN FRANCISCO, CALIFORNIA 94108 TEL 415-362-5154 Imagining change in historic environments through
design, research, and technology
EXHIBIT F – ADDITIONAL SERVICES PROPOSAL 2
DATE March 5, 2025 PROJECT
NUMBER
22349
TO Christian Harris, Associate Principal PROJECT Watsonville City Plaza Revitalization Project
OF SSA Landscape Architects, Inc. FROM Peter Birkholz, Principal, Page & Turnbull
CC Aisha Sawatsky, Page & Turnbull VIA Email
Dear Christian,
This proposal amends the previously approved contract to include the scope and fees for the additional tasks described below of the Watsonville City Plaza Revitalization Project, located in Watsonville, California. This ASR 2 is in addition to the previous ASR 1 approved for the project on July 12, 2024 (Exhibits D & E).
Description
Page & Turnbull (P&T) will provide services to finalize construction documents for rehabilitation of the historic bandstand (gazebo) and fountain for the Watsonville City Plaza project. P&T’s initial scope of services is limited to historic features and assistance with approvals for other disciplines’ scopes. This professional services proposal includes the following scope of work (please refer to the original agreement and ASR 1 for Tasks 1–6):
Task 7: 100% Design
• Revise construction documents per plan check and other City of Watsonville comments following review of 95% Design.
• Publish construction documents, wetsign and issue for permit and bidding.
Assumptions and Exclusions
The following are not included in this scope of services:
• Bidding and negotiation services following issuance of 100% Design are included in Task 3:
Construction Phase Services.
Attachment 1
Watsonville City Plaza Revitalization Project [22349]
Exhibit F – Page 2 of 2
PAGE & TURNBULL LOS ANGELES SACRAMENTO SAN FRANCISCO SAN JOSE Compensation
Compensation for the professional services described above will be billed on a time and materials basis at the rates described in Exhibit B of the original agreement, not to exceed the following fees.
Task 7: 100% Design $5,000
Reimbursable expenses are in addition to the Compensation for professional services and include actual expenditures made in the interest of the project. The reimbursable expense budget associated with these additional services is $0.
Additional services and costs are subject to the terms and conditions of the original agreement dated DECEMBER 16, 2022.
PAGE & TURNBULL
By ____________________________________________________________ Peter Birkholz, Principal
California Architect License No. C23418, exp 4/2027
Dated: March 5, 2025
ACCEPTED BY THE CLIENT:
Signature __________________________________________________ Date __________________________ Please include your name, title, and contact information including phone and email below:
Attachment 1
May 28, 2025
Christian Harris, Associate Principal
SSA Landscape Architects, Inc.
303 Potrero Street, Suite 40-C
Santa Cruz, CA 95060
Re: Watsonville City Plaza Revitalization – Additional Services Contract Amendment No. 4 – Increased Size and Schedule
MME Project No: 22157: P4
Dear Mr. Harris:
As you requested, we are pleased to submit this amendment to our existing agreement for the following additional services in support of the above-referenced project:
1. Increase design schedule and project complexity to complete redesign in May and June of 2025 5 hours
2. Handrail change at entry to Gazebo 5 hours
3. Light pole foundations and anchorage design 6 hours
4. Structural changes due to updated Soil Report 11 hours
5. Three virtual coordination meetings (1 engineer) 3 hours $200 x 30 hours = $6,000
As in our original agreement, compensation for all services rendered in connection with this project will be based on time and expenses charged in accordance with our Standard Billing Rates for 2025 (attached). Based on information available to us at this time, it is our opinion that the probable cost of our additional design phase services will be approximately $6,000. This figure is purely an estimate and is not intended as an upward limit of our billings, which are based on hourly fees and expenses. However, we will not exceed this estimate without your authorization. Invoices for these additional services will reference our project number 22157: P4 All provisions of our original agreement are considered to be in full force and effect with respect to these additional services. Please confirm your authorization to proceed with these additional services by signing, dating, and returning one copy of this letter.
We thank you for the opportunity to be of continued service on this project.
Respectfully yours,
Rodney Cahill, P.E.
Principal
Attachment 1