CONTRACT 7576 Professional Services AgreementAgreement No. 7576
05/2025
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
BLACK & VEATCH CORPORATION
This AGREEMENT is entered into this 1st day of May 2026, by and between the
CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and
BLACK & VEATCH, a Kansas Corporation ("CONSULTANT").
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed
in the SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by
the terms and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not
to exceed $113,000 for CONSULTANT's services. CITY may modify this
amount as set forth below. Unless otherwise specified by written
amendment to this Agreement, CITY will pay this sum as specified in the
attached Exhibit 'A" which is incorporated by reference.
2. SCOPE OF SERVICES,.
A. CONSULTANT will perform services listed in the attached Exhibit "A,"
which is incorporated by reference.
B. CONSULTANT will, in a professional manner, furnish all of the labor,
technical, administrative, professional and other personnel, all supplies
and materials, equipment, printing, vehicles, transportation, office space
and facilities, and all tests, testing and analyses, calculation, and all other
means whatsoever, except as herein otherwise expressly specified to be
furnished by CITY, necessary or proper to perform and complete the work
and provide the professional services required of CONSULTANT by this
Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT
will use the appropriate generally accepted professional standards of practice existing at
the time of performance utilized by persons engaged in providing similar services. CITY
will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of
any deficiencies and CONSULTANT will have fifteen (15) days after such notification to
cure any shortcomings to CITY's satisfaction. Costs associated with curing the
deficiencies will be borne by CONSULTANT.
-1-
Agreement N05/20725
4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement,
CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and
hourly rates for each personnel category and reimbursable costs (all as set forth in
Exhibit "A") the tasks performed, the percentage of the task completed during the billing
period, the cumulative percentage completed for each task, the total cost of that work
during the preceding billing month and a cumulative cash flow curve showing projected
and actual expenditures versus time to date.
5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT
for current services are within the current budget and within an available, unexhausted
and unencumbered appropriation of the CITY. In the event the CITY has not
appropriated sufficient funds for payment of CONSULTANT services beyond the current
fiscal year, this Agreement will cover only those costs incurred up to the conclusion of
the current fiscal year.
6. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:.
Carefully investigated and considered the scope of services to be
performed;
ii. Carefully considered how the services should be performed; and
iii. Understands the facilities, difficulties, and restrictions attending
performance of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that
CONSULTANT has or will investigate the site and is or will be fully
acquainted with the conditions there existing, before commencing the
services hereunder. Should CONSULTANT discover any latent or
unknown conditions that may materially affect the performance of the
services, CONSULTANT will immediately inform CITY of such fact and will
not proceed except at CONSULTANT's own risk until written instructions
are received from CITY.
7. TERM. The term of this Agreement will be from May 1, 2026, to June 30, 2027.
Unless otherwise determined by written amendment between the parties, this
Agreement will terminate in the following instances:
A. Completion of the work specified in Exhibit "A";
B. Termination as stated in Section 15.
8. TIME FOR PERFORMANCE.
IPA
Agreement No. 7576 05/2025
A. CONSULTANT will not perform any work under this Agreement until.
CONSULTANT furnishes proof of insurance as required under
Section 22 of this Agreement; and
ii. CITY gives CONSULTANT a written notice to proceed.
B. Should CONSULTANT begin work on any phase in advance of receiving
written authorization to proceed, any such professional services are at
CONSULTANT's own risk.
9. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond
CONSULTANT's control, CITY may grant a time extension for the completion of the
contracted services. If delay occurs, CONSULTANT must notify the Manager within
forty-eight hours (48 hours), in writing, of the cause and the extent of the delay and how
such delay interferes with the Agreement's schedule. The Manager will extend the
completion time, when appropriate, for the completion of the contracted services.
10. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the
main body of this Agreement takes precedence over the attached Exhibits; this
Agreement supersedes any conflicting provisions. Any inconsistency between the
Exhibits will be resolved in the order in which the Exhibits appear below:
A. Exhibit A: Scope of Work
11. CHANGES. CITY may order changes in the services within the general scope of
this Agreement, consisting of additions, deletions, or other revisions, and the contract
sum and the contract time will be adjusted accordingly. All such changes must be
authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY
resulting from changes in the services will be determined in accordance with written
agreement between the parties.
12.TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a
Taxpayer Identification Number.
13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and
maintain during the term of this Agreement, all necessary permits, licenses, and
certificates that may be required in connection with the performance of services under
this Agreement.
14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared
by CONSULTANT under this Agreement will not be construed to operate as a waiver of
any rights CITY may have under this Agreement or of any cause of action arising from
CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant,
or condition contained in this Agreement will not be deemed to be a waiver of any
-3-
Agreement No5/2025
subsequent breach of the same or any other term, covenant, or condition contained in
this Aareement. whether of the same or different character.
15. TERMINATION,
A. Except as otherwise provided, CITY may terminate this Agreement at any
time with or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY's
mutual consent. Notice will be in writing at least thirty (30) days before the
effective termination date.
C. Upon receiving a termination notice, CONSULTANT will immediately
cease performance under this Agreement unless otherwise provided in the
termination notice. Except as otherwise provided in the termination notice,
any additional work performed by CONSULTANT after receiving a
termination notice will be performed at CONSULTANT's own cost; CITY
will not be obligated to compensate CONSULTANT for such work.
D. Should termination occur, all finished or unfinished documents, data,
studies, surveys, drawings, maps, reports and other materials prepared by
CONSULTANT will, at CITY's option, become CITY's property, and
CONSULTANT will receive just and equitable compensation for any work
satisfactorily completed up to the effective date of notice of termination,
not to exceed the total costs under Section 1(C).
E. Should the Agreement be terminated pursuant to this Section, CITY may
procure on its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for
damages that might otherwise arise from CITY's termination under this
Section.
16.OWNERSHIP OF DOCUMENTS. All
models, photographs and reports prepared
CITY's property. CONSULTANT may reta
desired, but will deliver all original materia
agrees that use of CONSULTANT's com
identified in this Agreement, or use of inco
documents, data, studies, drawings, maps,
by CONSULTANT under this Agreement are
in copies of said documents and materials as
Is to CITY upon CITY's written notice. CITY
pleted work product, for purposes other than
mplete work product, is at CITY's own risk.
17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service
under this Agreement, no copies, sketches, or graphs of materials, including graphic art
work, prepared pursuant to this Agreement, will be released by CONSULTANT to any
other person or public CITY without CITY's prior written approval. All press releases,
including graphic display information to be published in newspapers or magazines, will
ME
Agreement Nog.5%2025
be approved and distributed solely by CITY, unless otherwise provided by written
agreement between the parties.
18.INDEMNIFICATION.
A. CONSULTANT agrees to the following:
i. Indemnification for Professional Services. CONSULTANT will
save harmless and indemnify and at CITY's request reimburse
defense costs for CITY and all its officers, volunteers,
employees and representatives from and against any and all
suits, actions, or claims, of any character whatever, brought
for, or on account of, any injuries or damages sustained by
any person or property resulting or arising from any negligent
or wrongful act, error or omission by CONSULTANT or any of
CONSULTANT's officers, agents, employees, or
representatives, in the performance of this Agreement.
ii. Indemnification for other Damages. CONSULTANT indemnifies
and holds CITY harmless from and against any claim, action,
damages, costs (including, without limitation, attorney's fees),
injuries, or liability, arising out of this Agreement, or its
performance. Should CITY be named in any suit, or should
any claim be brought against it by suit or otherwise, whether
the same be groundless or not, arising out of this Agreement,
or its performance, CONSULTANT will defend CITY (at CITY's
request and with counsel satisfactory to CITY) and will
indemnify CITY for any judgment rendered against it or any
sums paid out in settlement or otherwise.
B, For purposes of this section "CITY" includes CITY's officers, officials,
employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will
survive termination of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be
maintained by CONSULTANT as required by Section 222, and any
approval of said insurance by CITY, are not intended to and will not in any
manner limit or qualify the liabilities and obligations otherwise assumed by
CONSULTANT pursuant to this Agreement, including, without limitation, to
the provisions concerning indemnification.
19.ASSIGNABILITY. This Agreement is for CONSULTANT's professional services.
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without
CITY's written approval are prohibited and will be null and void.
-5-
Agreement No. 7576
05/2025
20.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that
CONSULTANT will act as an independent contractor and will have control of all work
and the manner in which is it performed. CONSULTANT will be free to contract for
similar service to be performed for other employers while under contract with CITY.
CONSULTANT is not an agent or employee of CITY and is not entitled to participate in
any pension plan, insurance, bonus or similar benefits CITY provides for its employees.
Any provision in this Agreement that may appear to give CITY the right to direct
CONSULTANT as to the details of doing the work or to exercise a measure of control
over the work means that CONSULTANT will follow the direction of the CITY as to end
results of the work only.
21.AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with
respect to all services and matters covered under this Agreement. CITY will have free
access at all reasonable times to such records, and the right to examine and audit the
same and to make transcript therefrom, and to inspect all program data, documents,
proceedings and activities. CONSULTANT will retain such financial and program
service records for at least three (3) years after termination or final payment under this
Agreement.
22.INSURANCE.
A. Before commencing performance under this Agreement, and at all other
times this Agreement is effective, CONSULTANT will procure and
maintain the following types of insurance with coverage limits complying,
at a minimum, with the limits set forth below:
Type of Insurance
Commercial general liability:
Professional Liability
Business automobile liability
Workers compensation
Limits
$1,000,000
$1,000,000
$1,000,000
Statutory requirement
B. Commercial general liability ("CGL") insurance must meet or exceed the
requirements of ISO-CGL Form No. CG 00 01 04 13, or equivalent,
covering CGL on an `occurrence" basis, including property damage, bodily
injury and personal & advertising injury with limits no less than $1,000,000
per occurrence. If a general aggregate limit applies, either the general
aggregate limit shall apply separately to this project/location (ISO CG 25
03 or 25 04) or the general aggregate limit shall be twice the required
occurrence limit.
51
Agreement No. 7576
05/2025
C. Professional liability coverage will be on an "occurrence basis" if such
coverage is available, or on a "claims made" basis if not available. When
coverage is provided on a "claims made basis," CONSULTANT will
continue to renew the insurance for a period of three (3) years after this
Agreement expires or is terminated. Such insurance will have the same
coverage and limits as the policy that was in effect during the term of this
Agreement, and will cover CONSULTANT for all claims made by CITY
arising out of any errors or omissions of CONSULTANT, or its officers,
employees or agents during the time this Agreement was in effect.
D. For automobiles, the insurance must meet or exceed the requirements of
Insurance Services Office Form Number CA 0001 covering Code 1 (any
auto), or, if CONSULTANT provides proof of a personal automobile policy,
such personal policy must include and indicate business venture coverage
with limits no less than $1,000,000 per accident for bodily injury and
property damage. If CONSULTANT has no owned autos, Code 8 (hired)
and 9 (non -owned), with limits no less than $1,000,000 per accident for
bodily injury and property damage must be included in coverage. If
CONSULTANT does not use an auto for any component of this
Agreement's performance, then CONSULTANT must sign and submit the
form attached as Exhibit "B" to CITY before carrying out work under this
Agreement.
E. The amount of insurance set forth above will be a combined single limit
per occurrence for bodily injury, personal injury, and property damage for
the policy coverage. Liability policies will be endorsed to name CITY, its
officials, and employees as "additional insureds" under said insurance
coverage and to state that such insurance will be deemed "primary" such
that any other insurance that may be carried by CITY will be excess
thereto. CITY's additional insured status will apply with respect to liability
and defense of suits arising out of CONSULTANT's acts or omissions.
Such insurance will be on an "occurrence," not a "claims made," basis and
will not be cancelable or subject to reduction except upon thirty (30) days
prior written notice to CITY, and the notice must include any necessary
endorsement to facilitate such notice to CITY.
F. CONSULTANT will furnish to CITY valid Certificates of Insurance
evidencing maintenance of the insurance required under this Agreement,
a copy of an Additional Insured endorsement confirming CITY has been
given Additional Insured status under the CONSULTANT's General
Liability policy, and such other evidence of insurance or copies of policies
as may be reasonably required by CITY from time to time. Insurance
must be placed with insurers with a current A.M. Best Company Rating
equivalent to at least a Rating of "A:VII."
G. Required insurance endorsement language is as follows:
VA
Agreement No 757 5
Additional Insured Endorsement with this language: "The City of El
Segundo, its elected and appointed officials, employees, and
volunteers as additional insureds."
ii. Cancellation Endorsement with this language: "The City of El
Segundo will receive thirty (30) days written notice in the event of
cancellation, nonrenewed or reduction."
iii. Primary and Non -Contributory Endorsement with this language:
"Coverage is primary and non-contributory such that any other
insurance that may be carried by the City will be excess thereto."
H. Should CONSULTANT, for any reason, fail to obtain and maintain the
insurance required by this Agreement, CITY may obtain such coverage at
CONSULTANT's expense and deduct the cost of such insurance from
payments due to CONSULTANT under this Agreement or terminate
pursuant to Section 15.
23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written
approval to use any consultants while performing any portion of this Agreement. Such
approval must approve of the proposed consultant and the terms of compensation.
24.INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the
status on the project, which will include a schedule update and a short narrative
description of progress during the past month for each major task, a description of the
work remaining and a description of the work to be done before the next schedule
update.
25. NOTICES. All communications to either party by the other party will be deemed
made when received by such party at its respective name and address as follows:
If to CONSULTANT: If to CITY:
Attention: Ann Bui Attention: Paul Chung
Black & Veatch Corporation City of El Segundo
550 S. Hope Street. Suite 2250 350 Main Street
Los Angeles, CA 90071 El Segundo, CA 90245
(949) 302-6017 (310) 524-2315
BuiA@,tv.com Chun else undo.or
Any such written communications by mail will be conclusively deemed to have been
received by the addressee upon deposit thereof in the United States Mail, postage
prepaid and properly addressed as noted above. In all other instances, notices will be
deemed given at the time of actual delivery. Changes may be made in the names or
10
Agreement No. 57 5
addresses of persons to whom notices are to be given by giving notice in the manner
prescribed in this paragraph.
26. PROHIBITED USE OF ARTIFICIAL INTELLIGENCE.
A. Restriction on Artificial Intelligence Usage. CONSULTANT must not
utilize, employ, or incorporate any form artificial intelligence, machine
learning, or other similar technologies (collectively, "Al") in the provision of
professional services in this Agreement without CITY's express written
consent.
B. Exclusions. The Al prohibition set forth directly above will not apply to
general business tools and software that may have Al components but are
not directly involved in the execution or delivery of professional services
that this Agreement covers, provided that such tools and software do not
significantly impact the quality or nature of such services.
C. Notification. CONSULTANT must promptly notify CITY, in writing, of any
proposal to employ Al in connection its provision of services to the CITY
under this Agreement. CITY will have the sole discretion to grant or deny
such proposal.
27.CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest
laws and regulations including, without limitation, CITY's conflict of interest regulations.
28. BACKGROUND CHECK; FINGERPRINTING; ASSOCIATED TRAINING. If
CONSULTANT's work involves contact with minors, before conducting any performance
of this Agreement, all Seller's employees, subcontractors, volunteers, or other agents
that will perform CONSULTANT's work under this Agreement must submit to and pass
a background/fingerprint investigation conducted or approved by City. CONSULTANT
affirms and attests that its employees, subcontractors, volunteers, or other agents that
will perform CONSULTANT's work under this Agreement have completed training in
child abuse and neglect identification and training in child abuse and neglect reporting,
which may be met by completing the online mandated reporter training provided by the
Office of Child Abuse Prevention in the State Department of Social Services.
CONSULTANT affirms and agrees that the background and reporting training will be
completed before beginning performance under this Agreement. Upon City request,
CONSULTANT will promptly furnish proof of completion of such mandated reporter
training to City, but in no event no later than two business days following City's request.
29. SOLICITATION. CONSULTANT maintains and warrants that it has not employed
nor retained any company or person, other than CONSULTANT's bona fide employee,
to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not
paid nor has it agreed to pay any company or person, other than CONSULTANT's bona
fide employee, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement.
M
Agreement No. 757 5
Should CONSULTANT breach or violate this warranty, CITY may rescind this
Agreement without liability.
30.THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of
any other party. There will be no incidental or other beneficiaries of any of
CONSULTANT's or CITY's obligations under this Agreement.
31.INTERPRETATION. This Agreement was drafted in, and will be construed in
accordance with the laws of the State of California, and exclusive venue for any action
involving this agreement will be in Los Angeles County.
32. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state,
and local laws applicable to this Agreement.
33. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire
understanding of the parties. There are no other understandings, terms or other
agreements expressed or implied, oral or written. This Agreement will bind and inure to
the benefit of the parties to this Agreement and any subsequent successors and
assigns.
34. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review
this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as
a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or
against either Party.
35. SEVERABILITY. If any portion of this Agreement is declared by a court of
competent jurisdiction to be invalid or unenforceable, then such portion will be deemed
modified to the extent necessary in the opinion of the court to render such portion
enforceable and, as so modified, such portion and the balance of this Agreement will
continue in full force and effect.
36.AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this
Agreement and to engage in the actions described herein. This Agreement may be
modified by written amendment. CITY's executive manager, or designee, may execute
any such amendment on behalf of CITY.
37. ELECTRONIC SIGNATURES; SIGNATURE AUTHORITY. This Agreement may be
executed by the Parties on any number of separate counterparts, and all such
counterparts so executed constitute one Agreement binding on all the Parties
notwithstanding that all the Parties are not signatories to the same counterpart. In
accordance with Government Code § 16.5, the Parties agree that this Agreement,
Agreements ancillary to this Agreement, and related documents to be entered into in
connection with this Agreement will be considered signed when the signature of a party
is delivered by electronic transmission. Such electronic signature will be treated in all
respects as having the same effect as an original signature. CONSULTANT warrants
-10-
Agreement No. 57 5
that its signatory (or signatories, as applicable) to this Agreement has the legal authority
to enter this Agreement and bind CONSULTANT accordingly.
38. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience
of reference only and will not affect the interpretation of this Agreement.
39.TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
40. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire,
flood, explosion, acts of terrorism, war, embargo, government action, civil or military
authority, the natural elements, or other similar causes beyond the Parties' reasonable
control, then the Agreement will immediately terminate without obligation of either party
to the other.
41. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT
represents that it has demonstrated trustworthiness and possesses the quality, fitness
and capacity to perform the Agreement in a manner satisfactory to CITY.
CONSULTANT represents that its financial resources, surety and insurance experience,
service experience, completion ability, personnel, current workload, experience in
dealing with private consultants, and experience in dealing with public agencies all
suggest that CONSULTANT is capable of performing the proposed contract and has a
demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY.
[Signatures on next page]
-11-
Agreement No. 7576
05/2025
IN WITNESS WHEREOF the parties hereto have executed this contract the day
and year first hereinabove written.
CITY OF EL SEGUNDO
Darrell George, Cio Manag
ATTE T.
Susan Truax,
City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
By:
D idKing, As ist t City Attorney
Insurance reviewed by:
� "1 aA &II- ,
Mary Sharon Brennan, Risk Manager
BLACK & VEATCH CORPORATION
�7
Ann iB�ui, Senior Managing ng Director
Taxpayer I D No.
jmf 5.1.26
PM (A. Morales)
5/4/2026�-2,�,, (
-12-
Agreement No. 7576
05/2025
EXHIBIT "A"
SCOPE OF SERVICES
Egli
Agreement No. 757 5
EXHIBIT "B"
ATTESTATION OF NON -AUTO USE FOR BUSINESS ENGAGEMENT
1, , hereby declare and attest under penalty of perjury under the laws of
the State of California as follows;
1. I seek to be a Consultant with the City of El Segundo (the "City").
2. In my capacity as a Consultant, I will not utilize any personal or business
automobile for the purpose of performing any work, duties, or services on behalf
of the City, including without limitation, travel to or from City facilities for such
performance.
3. All services I will provide for the City are conducted in a manner that does not
require the use of any automobile for transporting equipment, individuals, or for
any work -related purposes.
4. As a result, I do not require business automobile insurance as typically mandated
for other contractors who use automobiles in their service to the City.
5. 1 understand and acknowledge that this attestation is provided to comply with the
City's contractual requirements and insurance obligations. Should my
circumstances change and I begin utilizing an automobile in connection with my
services to the City, I agree to notify the City immediately and obtain the
necessary business automobile insurance coverage.
declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
DATE:
NAME AND TITLE (print):
f:W
-14-
BLACK & VEATCH
Agreement No. 7576
Table of contents
1. Cover/transmittal letter ................................ ...........................
........................., ............,.
2. Professional qualifications.................................................. ...............................................
.....,....1
AboutBlack & Veatch ........................ ............................................... ,.....
.... .....,. ........1
Californiaratemaking.............................................................................................................2
3. Personnel to perform the study..................................................................................................4
4
Projectteam•.........................................................................................................
8
4. Resumes— --....................................,... .......... ............ ,.... , ........,
......... ............ ................... ...
28
5. Utility rate structure clients.................................................................
....... ......,...... ,.....
28
List of Representative Projects . .......... ........
........ ..... ,................ ..........
6. Work plan..............................................................................................................
.......34
Projectunderstanding....................................................................................................................................
34
Scopeof work ................. ..... . ........ .......,..., ...
..... ........ 34
7. Project timeline—, ............. ............ .......--.....,............, , ..
...................... .........40
41
8. Cost estimate ........ ........... ............ --- .... .....w,....... .............................
....... .... ....................
9. Insurance requirements.............................................................................................................42
BLACK & VEATCH I TABLE OF CONTENTS
0 BLACK & VEATCH
BLACK & AMW1300W.T7696
550 S, Hope Street, Suite 2250, Los Angeles, CA 90071
P+1 949-302-6017 1 EBuiA@bv.com
1. Cover/transmittal letter
February 27, 2026
City of El Segundo
Dino Marsocci, Treasury & Customer Services Manager
Office of the City Clerk
350 Main Street, Room 5
EI Segundo, CA 90245
RE: Request for Proposal 25-02 — Water and Wastewater Rate Study
Dear Dino:
Black & Veatch Corporation (Black & Veatch) is pleased to submit our proposal in response to the City of El
Segundo's (City) request for a Water and Wastewater Rate Study (Study). We stand apart in the industry
with our proven track record of delivering reliable, effective ratemaking solutions that combine robust
financial expertise and advanced engineering knowledge. Our team brings regional and national experience
directly relevant to the City's needs, and we leverage our deep understanding of Southern California's
unique water and wastewater challenges to deliver maximum value.
To meet your Study's objectives, we will develop a forward -looking financial plan model that forecasts rates
over a 30-year horizon, accounting for expected cost escalations and integrating capital improvement
project scenarios to clearly illustrate the rate impacts. Our approach includes a thorough cost of service
analysis to ensure a fair and equitable allocation of costs across all customers. We go beyond standard
practice by offering clear, data -driven justifications for our recommended rate structures, supported by a
comprehensive "plain -speak" narrative that details our methodology, assumptions, and supporting data.
Our service also features a rigorous reserve analysis, complete with practical reserve policy
recommendations, providing the City with a strong foundation for long-term financial stability. We actively
engage with City staff and Council, facilitating productive discussions and transparent presentations of our
findings. The final report we deliver will be a clear, actionable resource —serving as both a decision -making
tool for staff and a robust administrative record.
Our proposal remains valid for ninety (90) days from the date of submittal. Black & Veatch is genuinely
committed to delivering exceptional professional services and partnering closely with the City of El
Segundo to achieve your objectives_ Please reach out to me at +1 949-302-6017 or BuiA@bv.com to
discuss how our expertise can benefit your community or if you need any additional information.
Very truly yours,
w �
Ann T. Bui
Senior Managing Director
Attorney -in -Fact
Agreement No. 7576
2. Professional qualifications
About Black & Veatch
BVH, Inc. is a leading, global engineering, construction and
consulting company specializing in infrastructure development in the
fields of energy, water and telecommunications. Our Mission sets
the bar high—Buildinga Worid ofDifferencem. We live up to this ideal
by delivering reliable and advanced infrastructure solutions to our
clients' most complex challenges, helping to improve and sustain the
quality of life around the world.
• • WATER TELECOM
•. - INTERNATIONAL,
- . - • MARKETS #1 4
. - .. ..- -
Black $ Veatch Corporation
Black & Veatch Corporation is a wholly -owned subsidiary of BVH, Inc..
Our Infrastructure Advisory division consists of professionals
including experienced industry executives, senior analysts and
technology experts from across the electric, water, oil, natural gas,
and technology industries. This experience —combined with
seamless access to the company's world -class engineering,
founded in 12
19 offices
0 0 o
I
global
12 000+ workforce
%P51B
2024 revenue
71
000+ proje
cts
world-wide
with projects on
continents
100+ /f
years creating
water infrastructure
Decades
of utility rate
mkig
BLACK & VEATCH 12 PROFESSIONAL QUALIFICATIONS
Agreement No. 7576
procurement, construction and operations capabilities, experienced senior executives, economists, senior
policy experts and regulatory officials, engineers, and internationally respected subject -matter experts —
makes Black & Veatch especially qualified to realize the goals of our clients.
Black & Veatch's diverse consulting services span financial, process and technology solutions, and many of
our experienced professionals possess cross -functional skills including asset management, cost of
service/rate design, business process/workflow analysis, and implementation services. The following is a
summary of the wide range of services offered by Black & Veatch.
Infrastructure Advisory solution portfolios
-- r
a �u
,.
U��..., 02 03 04 05 r°� "' 06
Strategy, Planning Transactions and Asset Management Infrastructure Al, Digital, & Industrial
& optimization M&A Solutions and 0&M Solutions Technology Program Excellence Cybersecurity
Solutions Solutions
- Technical due diligence Rates and regulatory
Markel analysis solutions Infrastructure Project Planning and
• • Strategic asset transformation management office requirements
Suslainabrlity Bankabilily
management Operational technology •Organizational Engineering and
• Planning and change management construction
optimization Asset management .Advanced metering
systems infrastructure Data and digital •Ongoing operations
Market and modeling . Operations and enablement
- Customer technology
maintenance
Asset engineering
seances
California ratemaking
The best testament to our work's quality and commitment to schedule is
more than 80 percent of our work comes from repeat clients and
engagements.
Black & Veatch has provided financial, rate -setting, and
operations management services for over 80 years. Regulatory
bodies recognize our team members as subject matter
experts in financial planning, rate -setting, affordability, and
Sacramento •
customer information systems, to name a few. We bring
proven expertise and experience conducting water, reclaimed
San Francisco 14water,
wastewater studies, and achieving successful financial
.•
plans and rate approvals gained through our work with
• F
hundreds of municipal utilities.
When we say that we have "done this before," we mean that
we have conducted more than 5,000 financial evaluations,
��
including rate and cost -of -service studies, over the past
..
oar�eil,a .,.
eight decades.
San Diego s
Black & Veatch has provided continuous service to water and
wastewater agencies in California since 1975. Our clients
benefit from our unique pedigree of highly respected business
professionals and national practice leaders
who work across all water and wastewater sectors.
BLACK & VEATCH 12 PROFESSIONAL QUALIFICATIONS 2
Agreement No. 7576
Over the last 20 years in California, Black & Veatch has worked for over 100 private and public agencies,
performing over 350 management consulting engagements.
We have successfully worked with utilities to
help defend Proposition 218 challenges and helped others
redesign structures to comply with the
proposition and case law.
Financial Planning
Cost of Service Analysis and Rate Design
Black & Veatch develops multi -year financial plans
Black & Veatch performs cost -of -service analyses
for water, reclaimed water, wastewater, and
that establish the rationale nexus between the
stormwater utilities in California and nationwide.
cost of providing services and how these services
Features of our financial plans include:
are priced. Some of the outcomes of our
approach include the following:
A Conducting historical water demand analyses
o Evaluating new customer classifications
• Developing repair & rehabilitation schedules
a Clearly defined costs by function,
classification, and allocation to various rate
• Leading capital prioritization activities
classes
• Establishing pass -through formulae
"Quick views" into the assigned allocators for
• Reviewing and recommending reserve
each function, classification, and rate class
policies
allocation
• Creating miscellaneous fees and reviewing
Developing new rate structures (e.g., tiers,
water budget -based)
overhead cost allocations
Modeling switches to evaluate multiple
Creating new recycled water rates, fire service
rates, drought surcharges, and special
scenarios and or assumptions
industrial surcharges
BLACK & VEATCH 12 PROFESSIONAL QUALIFICATIONS 3
Agreement No. 7576
3. Personnel to perform the study
Success starts with the Right Team
Project team
Black & Veatch brings together a proven team —
professionals who've worked side by side, understand
how utilities operate inside and out, and combine
engineering expertise with unmatched California rate -
setting experience.
We have selected a team specifically for this study with
key members centered in the Los Angeles/Irvine area
with support from other parts of our organization. The
proposed Black & Veatch brings the following critical
attributes to the City's study:
Established Leadership to address the City's
financial plan and cost -of -service study objectives,
provide pragmatic data -driven rate
recommendations, and gain consensus from the
City and its stakeholders.
Synergistic California Team that has Delivered
Similar Projects working together. The senior
members of our team, Ms. Bui, and Mr. Morales,
have worked together for over 20 years and bring
an established working cadence to this project.
Both are in Southern California and have the
knowledge and skillset to execute the study.
Recognized
Industry Experts
• Past Chair of the American Water Works
Association (AWWA) Finance, Accounting
and Management Controls Committee
• Primary Authors and co-authors for the
Water Environment Federation (WEF)
Manual of Practice 27 updates and WEF's
User Fee -Funded Stormwater Program
special publication
• Editor of the update to AWWA's M29 Water
Capital Financing
• Assigned Authors of the 5th-8th editions to
AWWA's M1 Rates and Charges Manual
• AWWA M77 Pipe Condition Assessment
(upcoming) edition
• AWWA M74 Developing Water Projects for
Small Systems
• AWWA G410 Manual of Operation and
Maintenance Support
• Journal of Water Finance & Management,
Water Finance Conference — Board Member
• Contributing author and Editorial Review
Board member for (new) AWWA M85
System Development Charges Manual
Proven Ability to Develop Support and Consensus
to get buy -in support from the City's internal and external stakeholders. The proposed Black & Veatch
team have worked on other engagements that have required numerous workshops and meetings to
gain a measure of consensus from City Council members and citizen advisory groups. We understand
the importance of getting to consensus with stakeholders.
Key personnel
The following section briefly describes each key team member's experience, expertise, and role in this
study.
BLACK & VEATCH 1 3. PERSONNEL TO PERFORM THE STUDY
Agreement No. 7576
NT1 O
Project Director
Ann Bui will serve as the Project Director and will provide technical guidance and
leadership, work with the City to achieve the objectives, and ensure the quality of the
analysis and deliverables.
• Phone: +1 949-302-6017, Email: BuiA = bv,com
• MBA, Finance, University of California — Davis
• Over 35 years of providing Financial Advisory Services
• A nationally recognized leader in the rate -making industry
• Author and Editor of key rate -making manuals, including AWWA M1 (51h_811
editions), M29 (41h and 51h editions), AWWA M85 (new), and WEF Mo27 (3Id and 411
editions)
• Chair and Vice Chair positions within AWWA's Rates & Charges Committee
(subcommittees) and Finance, Accounting, and Management Controls Committee
■ Experienced with building stakeholder consensus for complex cost -of -service
studies.
• Served on similar projects for the Cities of San Diego, CA, Santa Ana, CA, Long
Beach, CA, Santa Clara, CA, Menlo Park, CA, Simi Valley, CA, Newport Beach, CA,
Burbank, CA, Oakland, CA, LASAN, Marin Municipal Water District, Moulton Niguel
Water District, Sewerage and Water Board of New Orleans, LA, Philadelphia Water
Department, PA, and Washington Suburban Sanitary Commission, MD
• Office Location: Irvine, CA
Alberto Morales
Project Manager
Alberto Morales will serve as the Project Manager with the responsibility of leading and
managing the execution of all technical aspects of the project and delivering agreed -
upon deliverables.
■ Phone: +1 213-312-3319, Email: M r I aA,J v cQL
r MBA, Finance, University of California - Los Angeles
• Over 22 years of providing Financial Planning, Cost of Service Analysis, and Rate
Design
• Experienced Project Manager serving similar projects for Banning, CA; Menlo Park,
CA; Napa, CA; San Diego, CA; Long Beach, CA; Santa Clara, CA; LASAN, CA, -
Oakland, CA; Sewerage & Water Board of New Orleans, LA, and Washington
Suburban Sanitary Commission, MD
• Office Location: Los Angeles, CA
BLACK & VEATCH 13 PERSONNEL TO PERFORM THE STUDY
Agreement No. 7576
David Haug, PE, BCEE
Subject Matter Expert / Engineering Advisor
David Haug, P.E., will serve as a Technical Advisor, with the responsibility of
providing technical guidance with water and wastewater cost allocations. David
Haug will serve as a Technical Advisor, with the responsibility of providing technical
guidance with water and wastewater cost allocations.
• Phone: +1 213-312-3312, Email Haj gD v,t-an
• MS Civil Engineering, University of California at Davis
• Over 30 years of engineering design and construction experience
01 Registered Professional Engineer
■ Served on similar protects for Metropolitan Water District, CA; Sanitation
Districts of Los Ang,e;es County CA, Orange County Sarjtation Districts, CA;
INand Empire Utaiities Agency, CA, Santa Clarita Valley Water Agency, CA
Office Location: Los Angeles, CA
Jorge Villalobos
Assistant Project Manager
Jorge Villalobos will serve as an Assistant Project Manager by leading the water and
wastewater financial forecast, cost -of -service analysis, and rate design portions of
the study.
• Phone: +1 786-347-1417, Email VsLA� oJM b moo
• MBA, Business Administration, Rockhurst University
• Over 30 years of providing Financial Advisory Services
• Experienced Manager serving similar projects for Delray Beach, FL; Baton Rouge,
LA; Beaufort Jasper Water & Sewer Authority, SC; Gulf Coast Water Authority, TX, -
Metropolitan Sewer District of Greater Cincinnati, OH, and Wilmington, DE
• Office Location: Remote
BLACK & VEATCH 13 PERSONNEL TO PERFORM THE STUDY 6
Agreement No. 7576
Catherine Kieu
Analyst
Catherine Kieu will serve as the Analyst supporting the team on the financial
forecast, cost -of -service analysis, and rate design portions of the study.
Phone: +1 949-471-3876, Email: KIeuCLQby.com
■ MBA, Finance, University of California - Riverside
Analyst for water, wastewater, and stormwater cost -of -service and rate studies
for clients including: IEUA, City of Tracy, CA, City of Hesperia, CA; Unified
Government of Wyandotte County, KS; and City of Wilmington, DE.
a Office Location: Irvine, CA
BLACK & VEATCH 13. PERSONNEL TO PERFORM THE STUDY
Agreement No. 7576
4. Resumes
BLACK & VEATCH 14, RESUMES 8
Agreement No. 7576
Project Director
Ann Bui serves as a Senior Managing Director with Black & Veatch's Infrastructure
Advisory business and leads the company's Rates & Regulatory practice. Her areas of
expertise include providing clients with executive visioning strategies that marry
corporate perspectives with engineering, technology, and operational practicalities, and
driving growth and innovation to utilities in financial and advisory planning, resource
optimization, resiliency and sustainability issues, and asset integrity.
Ann has more than 30 years of experience with clients in North and South America,
Europe, and Asia, gained through more than 550 engagements, providing financial and
business planning services for public and investor -owned utilities of all sizes. Her
recent assignments have focused on reducing carbon footprints for energy -intensive
activities and water insecurity, addressing affordability through rate design, and
developing innovative approaches for structuring alternative delivery projects using
private and public financing instruments.
She has prepared financial feasibility reports supporting more than $16 billion of
revenue bond sales, $8 billion in state revolving fund loans, and over $1 billion in grant
applications.
An active proponent of advancing the water industry, Ms. Bui is a long-standing
member of several industry associations. She is a past Chair of the American Water
Works Association (AWWA) Finance, Accounting, and Management Controls
Committee and is involved with AWWA's Rates and Charges Committee, the National
Association of Clean Water Agency's Utility Management Committee, the Water
Environment Federation (WEF), and Western Energy Institute's Women in Energy.
Ann serves as an author, editor, and peer reviewer for many of the rate -making
industry's manuals of practice, including AWWA's M1 — Principles of Water Rates, Fees
and Charges, the current update to M1, the current update of WEF's Manual of Practice
27, Financing and Charges for Wastewater Systems, and WEF's User -Fee Funded
Stormwater Program. She is the lead author and editor of AWWA's book Financial
Management for Water Utilities- Principles of Finance, Accounting and Management
Controls. Presently, Ann is the Chair for the update to AWWA's M29 — Water Utility
Capital Financing and serves on the Editorial Review Committee for the new AWWA
manual, System Development Charges, M85.
SELECT PROJECT EXPERIENCE
In addition to the representative projects below, Ann is currently serving as the Project
Director for the following California -based rate studies that have scopes similar in
nature to that requested by the City:
• City of Tracy, CA (entering Proposition 218 phase)
• City of Hesperia, CA (entering Proposition 218 phase in August)
a City of Menlo Park, CA (enterning Proposition 218 phase)
• City of Yuba City, CA (entering Proposition 218 phase)
• Los Angeles Department of Water & Power, CA (Water Rate Action)
BLACK & VEATCH 14 RESUMES
Agreement No. 7576
Citizen's Energy Group I Water Cost of Service Rate Filing and Asset Valuation, 2023-
2025
Project Director. Black & Veatch has provided financial and rate consulting services to Citizen's Energy
Group (CEG) for its unregulated water and wastewater businesses for over a decade. Ann served as the
Project Director and expert witness for Black & Veatch's engagement to conduct a fair value analysis and
cost -of -service rate filing for CEG's regulated water utility.
Inland Empire Utilities Agency I Water, Recycled Water, and Wastewater Rate Studies;
California; 2024-2025
Project Director. Ann leads Black & Veatch's engagement with IEUA for its water, recycled water, one water,
and wastewater rate studies. IEUA is the largest regional water/wastewater service provider in San
Bernardino County. Studies also include a review of connection (capacity fees), potential cost allocation
changes, and negotiations with the 12 member agencies.
Philadelphia Water Department I Water, Wastewater and Stormwater Cost of Service
Studies; Pennsylvania; 2003-2006; and 2017-Present
Project Director. Ann has worked with the City of Philadelphia since 2003 and currently serves as the
Project Director for Black & Veatch's multi -utility cost of service work with the Philadelphia Water
Department (PWD). Over the years, some of the specialized services that Black & Veatch has provided to
PWD include developing new stormwater rate structures, examining alternative rate designs for water and
wastewater, restructuring the City's assistance programs, and developing a customer assistance rate rider.
With the City's implementation of AMI, Black & Veatch is performing PWD's full demand load study and
using these results to provide guidance on restructuring rate design options.
City of Los Angeles Bureau of Sanitation I Various Wastewater and Stormwater Rate
Services; California; 2008-2025
Project Director. Black & Veatch has provided financial and rate consulting services to the City of Los
Angeles (City) since the 1970s. Ann has worked with the City of Los Angeles Bureau of Sanitation (LASAN)
in a variety of positions since 2008. Currently, she is the Project Director for Black & Veatch's engagement
with LASAN to evaluate rate structure alternatives pertaining to the City's Clean Water Program. This
restructuring work involves extensive public outreach and engagement since it has been over a decade
since the last cost -of -service study.
County of San Diego's Department of Public Works I Rate Studies; California; 2015-
Present
Project Director. Ann serves as the Project Director for Black & Veatch's ongoing engagement with the
County of San Diego's Department of Public Works. The engagement with the County has included
comprehensive rate studies as well as specialized studies. Recently, we performed a rate study focused on
creating a water rate for the Live Oaks area, which the County was taking over from a private water utility.
Water service to the area is via groundwater wells and does not meet regulatory standards.
BLACK & VEATCH 14 RESUMES 10
Agreement No. 7576
CA - Water, Wastewater, Stormwater, & Solid Waste Utility Financial Planning, Rate & Cost -of -Service
Studies, Indirect Cost Allocations, and Organizational Assessments
•
Antioch, CA
a
Hesperia, CA
a
Patterson, CA
•
Atascadero Mutual Water
■
Indio Water Authority, CA
•
Pico Rivera, CA
Company, CA
a
IEUA
a
Pomona, CA
•
Banning, CA
a
Santa Monica, CA
■
Port Hueneme, CA
•
Burbank, CA
a
Los Angeles Bureau of
•
Port of San Diego, CA
•
CA American Water, CA
Sanitation
•
Rancho California Water
•
California State
a
LADWP, CA
District, CA
University, Channel
a
Leucadia Water District,
•
Riverside Public Utilities,
Islands, CA
CA
CA
•
Cambria Community
a
Lomita, CA
•
San Clemente, CA
Services District, CA
a
Long Beach, CA
•
San Diego, CA
•
Camrosa Water District,
■
Lynwood, CA
•
San Joaquin County, CA
CA
■
Manhattan Beach, CA
a
San Jose, CA
•
Carpinteria, CA
•
Marin Municipal Water
•
San Juan Capistrano, CA
•
Central Contra Costa
District, CA
a
Santa Ana, CA
Sanitation District, CA
•
Menlo Park, CA
a
Santa Clara, CA
•
Chino Hills, CA
•
Mesa Water District, CA
a
Santa Ynez River Water
•
County of San Bernardino,
•
Metropolitan Water
Conservation District, CA
CA
District of Southern
a
Simi Valley, CA
•
County of San Diego, CA
California
a
Soledad, CA
•
Cucamonga Valley Water
•
Moulton Niguel Water
•
Soquel Creek Water
District, CA
District, CA
District, CA
•
Downey, CA
•
Napa, CA
a
South Gate, CA
•
Dublin San Ramon
•
Newport Beach, CA
a
Sweetwater Authority, CA
Service District, CA
■
Oakland, CA
a
Tracy, CA
•
Eastern Municipal Water
•
Olivenhain Municipal
a
Western Municipal Water
District, CA
Water District, CA
District, CA
■
Encinitas Wastewater
a
Ontario, CA
a
Westminster, CA
Authority, CA
■
Orange, CA
■
Windsor, CA
■
Escondido, CA
■
Orange County Waste
■
Vallecitos Water District,
■
Fountain Valley, CA
and Recycling, CA
CA
•
Golden States Water
Oxnard, CA
a
Vallejo Flood Control
Company, CA
■
Padre Dam Municipal
District, CA
•
Goleta Water District, CA
Water District, CA
a
Yuba City, CA
a
Helix Water District, CA
•
Palo Alto, CA
BLACK & VEATCH 14 RESUMES 11
L,
Agreement No. 7576
•e • Morales
I Project Manager
Alberto Morales is a manager and serves as a project manager on financial planning,
cost of service analyses, capacity fees, miscellaneous fees, capital prioritization,
business processes, technical due diligence and market valuations for projects
involving water, recycled water, wastewater, and stormwater utilities.
Prior to joining the management consulting business of Black & Veatch, Alberto
worked as a civil engineer specializing in the design, construction management and
operations for water and wastewater utilities. Alberto combines his technical
engineering background with his financial experience to provide effective solutions for
clients.
PROJECT EXPERIENCE
City of Scottsdale I Water and Sewer Rate Study; Scottsdale, Arizona;
2025
Project Manager. Mr. Morales serves as the project manager for a water and sewer
rate study. In this role he is working with Water Resources and Treasury staff to
develop a long-range financial plan and develop rates. Scottsdale has raised rates
annually to keep up with inflation, but there are significant capital projects that need to
be addressed in the next five years. The study includes a five-year financial plan, cost
of service analysis, and rate design.
City of Hesperia I Water and Sewer Rate Study; Hesperia, California;
2025
Project Manager. Mr. Morales serves as the project manager for a water and sewer
rate study. In this role he is working with Finance staff to develop a long-range financial
plan and update rates. Hesperia has held their rates constant for about five years as in
a period of increased development. Therefore, Hesperia is examining their rates to
keep up with inflation costs. The study includes a five-year financial plan, cost of
service analysis, and rate design.
City of Menlo Park I Water Rate Study; Menlo Park, California; 2025
Project Manager. Mr. Morales serves as the project manager for a water rate study. In
this role he is working with utility staff to develop a long-range financial plan and
capital financing plan. Menlo Park has traditionally cash financed all capital projects
but is examining and issuing their first debt financing. In addition, we are helping Menlo
Park with a review and survey of alternative customer billing systems. The study
includes a five-year financial plan, cost of service analysis, and rate design.
Moulton Niguel Water District I Water and Sewer Rate Study;
Scottsdale, Arizona; 2025
Project Manager. Mr, Morales serves as the project manager for a cost -of -service peer
review study. In this role he is working with Finance staff to review the District's long-
range financial plan, cost of service analysis, and rates. The District has traditionally
performed their own cost of service study and have third -party consultants review and
advise as needed. The study includes a thorough review of their four-year financial
plan, cost of service analysis, and rate design.
BLACK & VEATCH I d RESUMES 12
Agreement No. 7576
City of Oakland I Sewer Rate and Connection Fees Study; Oakland, California; 2024
Project Manager. Mr. Morales serves as the project manager for a sewer rate and connection fee study. In
this role he is working with Public Works staff to update the sewer financial plan, conduct a cost of service,
and develop rates. The study also includes an update of the connection fees (system development
charges). Oakland has routinely raised rates based on CPI index and will be doing a comprehensive cost of
service study. The study includes a five-year financial plan, cost of service analysis, and rate design.
City of Los Angeles I Sanitation and Environment; Wastewater Cost of Service Study;
Los Angeles, California; 2023-2024
Project Manager. Mr. Morales serves as the project manager for a wastewater cost of service study. In this
role he is working with the Financial Management Division to perform a wastewater cost of service study.
Los Angeles has not raised rates since 2012 and is seeking revenue to execute its $3 billion -dollar CIP. In
addition, it has seen increases in operating costs associated with inflation which have required the City to
examine their wastewater rates. The study includes cost of service analysis, rate design, and public
outreach.
City of Santa Clara I Water and Wastewater Rate Study and System Development
Charges; Santa Clara, California; 2017-2024
Project Manager, Mr. Morales serves as the project manager for water, recycled water and wastewater rate
and system development charge study. He has served in this role for the past eight years working with the
Director of Public Utilities and Sr. Management Analyst to develop their water, recycle water and
wastewater rates and update their wastewater and storm drain system development charge. Through the
years, he has helped develop a new water system development charge, reviewed Proposition 218 notices,
assisted in public hearings, meet with its regional partners, and provided debt financing guidance.
City of Newport Beach I Water and Wastewater Rate Study; Newport Beach, California;
2022-2023
Project Manager Mr. Morales served as the project manager for a wastewater rate study. In this role he
worked closely with Utilities staff to perform a water and wastewater rate study. Newport Beach had seen
an increase in operating costs associated with inflation and drought conditions which required the City to
examine their water and wastewater rates. The study included a five-year financial plan, cost of service
analysis, and rate design.
City of Manhattan Beach I Wastewater Rate Study; Manhattan Beach, California; 2022-
2023
Project Manager. Mr. Morales served as the project manager for a wastewater rate study. In this role he
worked with Utilities and Finance staff to perform a cost -of -service analysis and rate design for the
wastewater utility. Manhattan Beach is a collection only system that directs wastewater flow to the Los
Angeles County Sanitation District for treatment service. Therefore, the study validated operating and
capital costs for the City were sufficient. The study included a five-year financial plan, cost of service
analysis, and rate design.
Veolia Water Idaho I Water Cost of Service Study; Boise, Idaho; 2022-2023
Project Manager. Mr. Morales served as the project manager for a water cost of service study. In this role
he collaborated closely with staff to perform a cost -of -service analysis for an Investor -Owned Utility. Veolia
Water Idaho provides water services to the City of Boise and surrounding areas, and the Idaho Public
Commission (PUC) provides oversight with regards to rate adjustments. The study included a water cost of
service analysis and rate design that will satisfy Idaho PUC requirements.
BLACK & VEATCH 14 RESUMES 13
Agreement No. 7576
City of Napa I Water Rate Study; Napa, California; 2022-2023
Project Manager, Mr. Morales served as the project manager in a water rate study. In this role, he worked
closely with the Water General Manager to develop a rate structure that would meet Proposition 218's
requirements while meeting the financial needs of the Water Division, The City has seen an increase in
operating costs due inflation and drought impacts; therefore, they sought to update their water rates. A rate
model was developed that incorporated financial planning, cost of service analysis and rate design that
recovered costs equally among its customer classes.
County of San Diego I Water Rate Study; Live Oak Springs, California; 2020-2022
Project Manager. Mr. Morales served as the project manager for a water rate study. In this role he worked
closely with staff to develop a new rate structure for a County Service Area (CSA) that has been recently
acquired by the County. The County owns and manages a various wastewater CSAs, but Live Oak Springs
CSA is their first water utility. The study included a three-year financial plan, cost of service analysis, and
rate design that will satisfy Proposition 218 requirements. The County Board of Directors approval to move
forward with Proposition 218 requirements in late 2020.
BLACK & VEATCH 14 RESUMES 14
Agreement No. 7576
Water, Wastewater, Stormwater, & Solid Waste Utility Enterprise Financial Planning, Rate & Cost -of -
Service Studies, System Development
Charges,
Capital Prioritization Activities
■ Goodyear, AZ
r
Los Angeles Bureau of
■'
Simi Valley, CA
• Phoenix, AZ
Sanitation LA DWP, CA
South Gate, CA
• Scottsdale, AZ
°
Leucadia Water District,
Southern California
r Anaheim Public Utilities,
CA
Water Company, CA
CA
au
Lomita, CA
Western Municipal Water
A Antioch, CA
4
Lon Beach, CA
9
District, CA
• Banning, CA
a
Lynwood, CA
Westminster, CA
• Burbank, CA
.
Manhattan Beach, CA
Vallecitos Water District,
• California American
a
Marin Municipal Water
District, CA
"
CA
Victor Valley Wastewater
Water, CA
• California State
a
Menlo Park, CA
Reclamation Agency, CA
University, Channel
M
Metropolitan Water
0
Yuba City, CA
Islands, CA
District of Southern
w
Southeastern Colorado
■ Cambria Community
California
Water Conservancy
Services District, CA
■
Napa, CA
District, CO
• Camrosa Water District,
a
Newport Beach, CA
a
Florida Government Utility
CA
Oakland, CA
Authority, FL
Central Contra Costa
Olivenhain Municipal
°'
Atlanta, GA
Sanitation District, CA
Water District, CA
W
Veolia Water, ID
■ Chino Hills, CA
Orange, CA
a
Aurora, IL
County of San Bernardino,
•
Oxnard, CA
a
Topeka, KS
CA
Palo Alto, CA
a
Unified Government
County of San Diego, CA
Pico Rivera, CA
Wyandotte County, KS
Downey, CA
Port Hueneme, CA
a
Sewerage and Water
Dublin San Ramon
a
Port of San Diego, CA
Board of New Orleans, LA
Service District, CA
Rancho California Water
a
Baton Rouge, LA
• El Dorado Irrigation
District, CA
a
Shreveport, LA
District, CA
Riverside Public Utilities,
a
Washington Suburban
• Encinitas Wastewater
CA
Sanitary Commission, MD
Authority, CA
a
San Clemente, CA
®
Las Campanas Water &
• Fountain Valley, CA
a
San Diego, CA
Sewer Cooperative, NM
in Garden Grove, CA
a
San Jose, CA
Henderson, NV
Golden States Water
a
San Juan Capistrano, CA
"tl
Las Vegas, NV
Company, CA
&
Santa Ana, CA
°
Veolia, NY
Helix Water District, CA
a
Santa Clara, CA
�
Elyria, OH
Indio Water Authority, CA
a
Santa Ynez River Water
Gulf Coast Water
■ Santa Monica, CA
Conservation District, CA
Authority, TX
Hudson Oaks, TX
BLACK $ VEATCH 14 RESUMES 15
Agreement No. 7576
David Haug, PE, BCEE
SME / Engineering Advisor
David Haug has over 30 years of experience in the Southern California
water/wastewater market as a project manager, construction manager, and project
engineer. His experience ranges from developing environmental documentation and
feasibility reports for large capital improvement projects to preparing preliminary
design reports, designing and managing the construction of conveyance systems, and
treatment facility upgrades. David has experience as both a consultant and an owner;
he understands what it is like to be in your shoes and will deliver from that perspective
PROJECT EXPERIENCE
Metropolitan Water District of Southern California I Pure Water SoCal;
Los Angeles, CA; 2020-2021
Project Engineer. Metropolitan retained Black & Veatch to prepare the Feasibility- Level
Engineering Analysis and conceptual design report evaluating alignments, pumping
stations, and injection wells for a new regional conveyance system. The feasibility -level
design was completed in June 2020, and Metropolitan subsequently authorized Black
& Veatch to provide Environmental Planning Phase Engineering Services for the
conveyance and recharge facilities under a new series of Task Orders. David provided
civil engineering services for the recently -completed verification of alignments in the
City of Carson, which included a high-level comparison of alternatives within the City.
The alternatives evaluation considered existing utilities, traffic flow, geotechnical
conditions, environmental constraints, public and private property impacts,
construction techniques, and permitting constraints and consisted of reviewing
publicly -available information. Cross sections were developed depicting each
alignment's proposed position relative to known existing utilities and indicating any
relocations that would be required or other constraints associated with construction.
An engineer's opinion of probable construction cost (OPCC) also was developed for
each alternative,
Metropolitan Water District of Southern California I Environmental
Planning Phase Engineering Services for Conveyance and Recharge
Facilities for the Regional Recycled Water Program; CA; 2020-2021
Project Manager. Provided environmental planning engineering support and
conceptual design services for the Conveyance and Recharge Facilities in preparation
of the Program Environmental Impact Report. The evaluation of a preferred alignment
and associated facilities included facilities required to convey up to 150 mgd of highly
treated tertiary effluent from an Advanced Water Treatment plant located in the City of
Carson to the Santa Fe Spreading Grounds in Irwindale, as well as conveying water to
Metropolitan's Weymouth Plant in La Verne or Metropolitan's Diemer Plant in Yorba
Linda for potential direct potable reuse applications. The potential 60-mile-long pipeline
ranges in size from 60- to 84-inches in diameter and is within highly developed, utility
and traffic intensive urban streets in Los Angeles county and passes through multiple
jurisdictions.
BLACK & VEATCH 14 RESUMES 16
Agreement No. 7576
Sanitation District of Los Angeles County I Joint Water Pollution Control Plant
(JWPCP,) Effluent Ouall Funnel Project; Los Angeles County, CA a 2005-2016
gic
Project
the design of the estimated $650 ml on JWPCP Effluentided Out allrTunnel project also ng t o
-Angeles
known as
the Clearwater Program. The design consisted of approximately 7 miles of an 18-foot diameter concrete
segment lined tunnel and appurtenant structures. The environmental documentation and design phase
took more than a decade to complete. Assisted with the preparation of the Environmental Impact Report /
Environmental Impact Statement analyzing six alternatives. During the environmental planning process,
successfully implemented an analysis of an alternative tunnel alignment which was not part of the initial 55
alignments being evaluated. Adoption of the alternative alignment resulted in a $1 billion savings in capital
cost and became the recommended alternative in the EIR / EIS. Over the length of the alignment,
easements from one residential property, one school site, three commercial properties, an industrial
property, golf course, park and nature preserve were required. The design required the installation of 14-,
12- and 7.5-foot diameter double offset butterfly valves which required an international search for suppliers
of these valve sizes. Assisted with multiple public outreach meetings during the public comment period for
the EIR / EIS. Also managed the geotechnical program that consisted of borings, CPTs, geophysical
surveys and seismic surveys. Interfaced with the Army Corp of Engineers (Federal Lead Agency), California
Coastal Commission, numerous Cities, City of Los Angeles Unified School District, and community groups
during development of the program.
Orange County Sanitation Districts I P1-126 — Primary Sedimentation Basins No. 3-5
Replacement at Plant No. 1; Fountain Valley, CA I 2021 - Present
Project Manager. Responsible for the evaluation and design of replacing three exlstung circua'r clarifiers at
Plant No. 1 with new clarifiers. The project included an analysis of the existing primary odor control facility
and ancillary facilities. The $14M scope of work also included validation of the agencies hydraulic model for
Plant No. 1. Result of the study concluded raising the hydraulic grade line of the eastside clarifier system
would allow for gravity flow of the primary effluent from the clarifier to the aeration basins and
abandonment of the Primary Effluent Pump Station. David managed multiple subconsultants, evaluating
different parameters of the project. The preliminary design phase culminated in development of a
Preliminary Design Report which contained over 5,200 pages.
Orange County Sanitation Districts I PS16-04 — Rectangular Primary Clarifier Study at
Plant No. 1; Fountain Valley, CA 12018
Project Manager — Woodard & Curran. Provided project management and preliminary design concepts for
the evaluation of how to improve the process reliability and operational flexibility of the rectangular Primary
Clarifier system in preparation for a future project that will rehabilitate or replace circular clarifiers within
Plant No. 1. The study also validated the capacity of the rectangular clarifiers, performed a hydraulic
analysis for gravity flow into Plant No. 1 Headworks at peak wet weather flow and accommodating the flow
through the rectangular clarifiers, evaluate alternative discharge locations for the Orange County Water
District's Ground Water Replenishment System microfiltration backwash discharge, identify potential
improvements to the primary sludge pumping system, and evaluate methods to repair the joints of the
primary effluent pipelines conveying effluent from the clarifiers.
Inland Empire Utilities Agency I RP-1 Headworks, Primary and Secondary Upgrades;
Chino, CA 12018
Project Manager — Woodard & Curran. Responsible for preliminary and final design of improvements to
address deficiencies within the RP-1 headworks, primary and secondary treatment systems. Improvements
BLACK & VEATCH 14 RESUMES 17
Agreement No. 7576
include the rehabilitation of existing aerated and vortex grit chambers, replacement of grit washer/classifier
equipment, application of protective coating/lining system to existing concrete walls and ceilings,
replacement of existing scum pump system, and construction of bypass piping for the intermediate pump
station flowmeter.
Inland Empire Utilities Agency I RP-1 Mixed Liquor Return Pumps; Chino; CA 12017
Technical Manager — Woodard & Curran. Responsible for preliminary and final design of a mixed liquor
return pump system to enhance total inorganic nitrogen removal within the RP-1 secondary treatment
system. Improvements included installation of six mixed liquor return pumps and associated variable
frequency drives, mixers, flowmeters, piping and controls, and modifications to the existing baffles and
construction of new baffles. David provided engineering services during construction, including
participation in workshops and progress meetings; processing of submittals; and responding to requests
for information.
rPlanet Earth; Wet Grinding & De -labeling Retrofits; Vernon, California, United States;
2020
Construction Manager- Woodard & Curran. Construction Manager for a $3.5 million Design Build utility
retrofit and new equipment installation project to expand the processing capacity and efficiency of a
polyethylene terephthalate (PET) recycling facility, Managed three different contractor trades with a work
force ranging from 20 to 30 employees. Responsible for site safety and coordinating work sequences with
other contractors that had overlapping work zones.
City of Anaheim; Knollwood Circle Sewer Improvement Project; Anaheim, California,
United States; 2019-2020
Project Manager - Woodard & Curran. Oversaw the design development of a new approximately 1,700 foot
long 12-inch diameter sewer. The project involved performing an alternatives analysis evaluating multiple
alignments, overseeing survey and geotechnical subconsultant's work, and selecting a recommended
alternative, Some project constraints included shallow pipe slopes, utility interferences, and obtaining
easements through private property,
Del Puerto Water District; Del Puerto Canyon Reservoir; Patterson, California, United
States; 2019-2020
Project Manager- Woodard & Curran. Oversaw the preliminary design of a new 84-inch diameter, 4,000 foot
long pipeline to convey water to and from the Delta Mendota Canal to a new reservoir. Installation of the
pipeline will involve open cut and trenchless construction. The trenchless portions cross under the
California Aqueduct, Interstate 5, and several oil pipelines. The pipeline will have to withstand approximately
300 feet of head.
rPlanet Earth; New Facility Construction; Vernon, California, United States; 2016-2019
Construction Manager- Woodard & Curran. As the Construction Manager, oversaw the installation and
startup of manufacturing and utility systems for a new polyethylene terephthalate (PET) plastic recycling
facility. The manufacturing systems included two injection molding units, three sheet extrusion lines and
two thermoforming units. The utility systems included two water systems, low pressure compressed air,
steam and condensate systems, and electrical switchboards.
BLACK & VEATCH 14 RESUMES 18
Agreement No. 7576
Santa Clarita Valley Water Agency; Clearwell CT Improvements; Castaic, California,
United States; 2017-2019
Construction Manager -Woodard & Curran. Construction Manager for construction of the 2.2 million -
gallon chlorine contact basin at the Earl Schmidt Filtration Plant (ESFP) and acted as the owner's
representative for the project. The project involved excavating and compacting the native material below
the basin, installing new 54-inch CML&C steel pipe to connect the basin to the existing 54-inch Filtered
Effluent pipeline, relocation of an existing electrical duct bank, and installation of a new sample water line
from the basin to the laboratory. Woodard & Curran's construction management services included contract
administration and full-time inspection. Although not used during the construction, soils inspection services
were available as part of the contract. Special inspection needs were handled by the contractor as required
by the specifications of the project. During the project, Woodard & Curran coordinated with the contractor
to ensure construction activities had minimal impact to the Agency's operations of the ESFP. Construction
management activities also included responding to Request for Information, review of the contractor's
monthly pay estimate, and construction schedule.
Carollo Engineers, Inc; Sacramento Accelerated Water Meter Program Phase 2;
Sacramento, California, United States; 2017-2018
Technical Manager- Woodard & Curran. Technical Manager responsible for providing engineering support
services for program management of the City of Sacramento's accelerated water meter installation
program. The project involves implementation of project controls systems; development of
easements/permitting plan; funding support; and preparation of procurement plan, and scope of services
for meter installation work packages. His work included technical reviews of specifications and bid items.
Oro Loma Sanitary District; Nearshore Outfall Assessment; San Lorenzo, California,
United States; 2017
Technical Manager- Woodard & Curran. Responsible for evaluating methods to divert wet weather flows to
an existing idle outfall in the San Francisco Bay. The effluent from the Oro Loma Sanitary District Water
Pollution Control Plant discharges into the East Bay Dischargers Authority effluent outfall pipeline. During
wet weather events, high flows from other dischargers into the Authorities created an adverse effect on the
Plant's hydraulic capacity. The scope of work was to evaluate the feasibility of diverting effluent into the
Nearshore Outfall when flow rates within the Authority's pipeline exceeded a given set point. Active
methods of using valves and pumps and passive methods utilizing side weirs were evaluated.
City of Milpitas; Dempsey Road Utility Improvements; Milpitas, California, United
States; 2016-2017
Technical Manager - Woodard & Curran. Technical Manager for design of a new 12-inch recycled water
pipeline to expand the City's existing recycled water system — 10,300 LF (approximately). The new pipeline
will be installed with traditional open -cut construction along congested and busy city streets, as well as
with trenchless installation beneath 1-680, Berryessa Creek, and two box culverts. David's work includes
technical reviews as part of quality assurance/quality control related to final design, including storm drain
D-load calculations
City of Malibu; Civic Center Wastewater Treatment Facility; Malibu, California, United
States; 2016-2017
Technical Manager- Woodard & Curran, As Technical Manager, I supported Woodard & Curran's program
management team for the Legacy Park project with work on a centralized wastewater collection and
treatment project to eliminate onsite wastewater disposal system (aka septic system) loadings to the
underlying groundwater basin. David's tasks included submittal coordination and review, including review of
BLACK & VEATCH 14 RESUMES 19
Agreement No. 7576
proposed alternative trenchless pipe installation method, response to requests for information, and
designing an injection well vault.
Oakwood Lake Water District; Package MBR Procurement and Connection Design;
California, United States; 2016
Project Engineer- Woodard & Curran. Project Engineer for the preliminary design, procurement, and
connection design for a package membrane biological reactor (MBR) treatment plant. David's work
includes earned value analysis, schedule preparation, and progress report development.
Sanitation Districts of Los Angeles County; JWPCP Effluent Outfalls Cathodic
Protection; Los Angeles, California, United States; 2014
Project Engineer - Sanitation Districts of Los Angeles County. As part of the planning and evaluation
process of the Clearwater Program, a condition assessment of the existing ocean outfalls was developed
to determine if the assets remaining useful life would satisfy the planning horizon of the Program. The
project involved obtaining core samples from the concrete pipes and cast-iron bell and faucets utilizing
divers ranging in depths from 60 to 200 feet below sea level. The project also established cathodic
protection on all the cast-iron bell and faucet joints on three of the four outfalls.
Sanitation Districts of Los Angeles County; Joint Outfall "H" Unit 1 B Replacement
Trunk Sewer, Section 3; South Gate, California, United States; 2003-2005
Construction Manager - Sanitation Districts of Los Angeles County. Construction Manager for the
installation of approximately 8,090 feet of 90-inch diameter Reinforced Concrete Pipe along the Los
Angeles River. Approximately 3,890 feet of the pipeline was installed by a two -pass tunneling construction
method, the remaining pipe was installed by traditional open cut methods. During a winter storm, the tunnel
became flooded due to leaky LA River channel panels. The leak was plugged by depositing gravel and grout
behind the panel. Also coordinated stakeholders, responded to requests for information, reviewed the
contractor's monthly pay estimate and construction schedule, and ensured conformance with the plans
and specifications.
BLACK & VEATCH 14 RESUMES 20
Agreement No. 7576
Jorge Villalobos, M.S., M.B.A.
Assistant Project Manager
Jorge Villalobos provides consulting expertise in the areas of financial planning,
analysis for revenue requirements, cost of service, rate design as well as cost -benefit
analysis, capital prioritization and business process evaluation for water, wastewater,
stormwater, gas and electric utilities.
His experience also includes work as a consultant in the banking and commercial real
estate industries. This broad professional background allows him to understand the
points of view of different stakeholders in each engagement; which allows him to
provide effective and actionable solutions for his clients.
Water, Wastewater and Stormwater
City of Lauderhill I Stormwater Rate Study; Lauderhill, Florida; 2024-
In-Progress
Consultant - Black & Veatch. Mr. Villalobos is currently assisting in'the development of
a comprehensive study to determine rate adjustments to impervious area fees;
necessary to recover costs associated with the City's Stormwater Utility. The study
includes a new impervious area capture effort, as well the development of a detailed
stormwater financial and rate model. This model will project revenue requirements and
required financial metrics. Revenue increase requirements will result in updated rate
schedules to reflect the City's stormwater operational and capital program needs.
Among the program needs, the study analyses the city's current well as projected
incremental costs and expenses related to increased staffing necessary to provide an
adequate level of service. The intended result of the study is to provide decision -
makers with a reliable and defensible estimation of the level of fees required to
operate, maintain, and renew the City's stormwater infrastructure.
Metropolitan Sewer District of Greater Cincinnati (MSD) I Wet Weather
Impervious Surface Charge Feasibility Study; Ohio; 2022-2023
Consultant - Black & Veatch. Mr. Villalobos assisted in the development of a study to
evaluate the feasibility of implementing a Wet Weather Impervious Area Charge to
recover the costs related to stormwater that impact the Metropolitan Sewer District.
MSD's operations include a Combined Sewer which impacts their collection and
wastewater treatment systems. These costs are currently recovered by the District
through its sewer rates. The study is intended to provide decision -makers with a
reliable and defensible estimation of the cost impact of collection and treatment of
stormwater as well as how it could recover this cost from individual properties based
on Impervious Area as a parameter of contributed volume into the system. The study
includes a series of community outreach sessions with key stakeholders so they can
provide feedback into the scope and fairness expected from a new stormwater utility
fee structure.
City of Baton Rouge I Parish of East Baton Rouge; Stormwater Utility
Feasibility Study; Baton Rouge, Louisiana; 2022-2023
Consultant - Black & Veatch. Mr. Villalobos assisted in the development of a study to
evaluate the feasibility of implementing a new Stormwater Utility that would allow the
BLACK & VEATCH 14 RESUMES 21
Agreement No. 7576
City -Parish to achieve appropriate funding through user fees, and other sources, to comply with is MS4
permit requirements. Work includes an impervious area capture for the new utility's projected service area,
the development of a stormwater utility financial and rate model, projecting detailed revenue requirements,
modeling the impact of multiple level of service alternatives, developing capital financing mix, and required
financial metrics. The study analyses a proposed level of staffing for the new utility, projected revenues
from fees and funding from grants, transfers from general funds and proposed debt issuance to fund the
new Utility. The results of the study are shared with stakeholders in a series of sessions with a Stormwater
Advisory Committee stablished by the City -Parish for this purpose. The goal is to provide decision -makers
with a reliable and defensible estimation of the cost of providing and operating a separate Stormwater
Utility and to recover these costs from individual properties based on Impervious Area as a parameter of
contributed volume into the system.
Veolia Water I Cost of Service Rate Study; New York, NY; 2023
Consultant - Black & Veatch. Mr. Villalobos served as the lead analyst for a water cost of service study. In
this role he worked in the development of a cost -of -service analysis for an Investor -Owned Utility. Veolia
Water New York provides water services to several rate districts including New York, Forest Park, Heritage
Hills and Westchester Districts No.] &No.2. The New York Public Service Commission (PSC) provides
oversight with regards to rate adjustments. The study included a water cost of service analysis and rate
design that will satisfy the New York PSC requirements; including the option to unify the existing rates of
both Westchester Districts into one Cost of Service rate, as well as unifying the remaining areas under a
single Cost of Service rate.
Veolia Water I Cost of Service Rate Study; Newport, Delaware; 2023
Consultant - Black & Veatch. Mr. Villalobos served as the lead analyst for a water cost of service shady. Ire
this role he worked with a team to perform a cost -of -service analysis for an Investor -Owned Utility. Veolia
Water Delaware provides water services to customers in New Castle County. The Delaware Public Service
Commission (PSC) provides oversight with regards to rate adjustments. The study included a water cost of
service analysis and rate design that will satisfy Delaware PSC requirements.
City of Lee's Summit I Stormwater utility Feasibility Study; Missouri; 2023-2024
Consultant - Black & Veatch Mr_ Villalobos assisted in the development of a sturdy to evaluate the feasibility
of implementing a new Stormwater Utility. Work includes the creation of stormwater financial and rate
model, projecting detailed revenue requirements, modeling the impact of level of service alternatives,
developing capital financing mix, and required financial metrics. The study analyses a mechanism to
recover appropriate funding from charges based on Impervious Area. The study analyses a proposed level
of staffing, projected revenues from fees and funding from multiple other sources to fund the new Utility.
The intended result of the study is to provide decision -makers with a reliable and defensible estimation of
the cost of providing and operating a separate Stormwater Utility and outline a mechanism appropriate to
recover these costs from individual properties.
City of Delray Beach I Stormwater Rate Study; Florida; 2021 — Iry -Progress
Consultant - Black & Veatch Mr. Villalobos assisted in the development of a comprehensive study to
determine rate adjustments to impervious area fees; necessary to recover costs associated with the City's
Stormwater Utility. The study includes the development of a detailed stormwater financial and rate model,
projecting revenue requirements and required financial metrics, Anticipated system -wide revenue increase
requirements were developed along with the associated rate schedules to reflect the City's stormwater
operational and capital program needs to address growth, climate change and water quality issues. Among
the program needs, the study analyses the city's current well as projected incremental costs and expenses
related to increased staffing necessary to provide an adequate level of service. The study includes
modeling of alternative rate structures. The intended result of the study is to provide decision -makers with
BLACK & VEATCH 1 4. RESUMES 22
Agreement No. 7576
a reliable and defensible estimation of the level of fees required to operate, maintain, and renew the City's
stormwater infrastructure.
Beaufort Jasper Water & Sewer Authority I Water and Sewer Capacity Fees Report;
Okatie, South Carolina; 2022
Consultant. Mr. Villalobos was the lead analyst in a study to review its water and sewer capacity fees.
Capacity Fees are one-time fees assessed to customers that seek to connect to the water and sewer
systems such that these customers pay their appropriate share of costs to join the system. The study used
a Combined Systems Approach, which reflects a combination of the System Buy -in and Incremental Cost
Pricing approaches, requires more robust information pertaining to planning, estimate. of future conditions,
and accurate record keeping to calculate a Maximum Allowable Capacity Fee appropriately. This
methodology results in the recognition of investment in the system by existing customers and the
incremental capacity, additions necessary to serve new growth, a defensible and consistent methodology
that utilizes industry best practice principles and complies with applicable legal requirements; and Flexibility
for the utility to consider policies in defining Capacity Fees that are lower than the Maximum Allowable
Capacity Fee. The study resulted in a recommendation to increase Capacity Fees to reflect the increased
costs experienced by the authority.
Gulf Coast Water Authority (GCWA) I System Development Fees; Texas City, TX; 2021-
2022
Consultant - Black & Veatch. Mr. Villalobos served as lead analyst in a study that identified the cost that a
new customer should contribute in order to "buy -in" to the existing infrastructure; depending on which canal
and volume capacity new customer will require. GCWA operates a network of over 300 miles of canals that
provide raw water to private and municipal customers; spanning Fort Bend, Brazoria and Galveston
Counties. This infrastructure also includes pumping stations, reservoirs, and many operational assets. The
study resulted in a defensible calculation of the cost that a new customer should contribute.
Metropolitan Sewer District of Greater Cincinnati (MSD) I Wet Weather Impervious
Surface Charge Feasibility Study; Ohio; 2021
Consultant- Black & Veatch. Mr. Villalobos assisted in the development of a study to evaluate the feasibility
of implementing a new Stormwater Utility by bifurcating the costs currently recovered by the Metropolitan
Sewer District under its sewer rates. The study included a series of community outreach sessions with key
stakeholders that provided valuable feedback into the scope and fairness expected from a new stormwater
utility fee structure. The study is to provided decision -makers with a reliable and defensible estimation of
the cost of providing and operating wet weather infrastructure as well as how it could be attributed to
individual properties based on Impervious Area as a parameter of contributed volume into the system.
Metropolitan Sewer District of Greater Cincinnati (MSD); Rate Study and Consent
Decree Support Services; Cincinnati, Ohio; 2021
Consultant- Black & Veatch. Mr. Villalobos assisted in the development of a study to determine rate
adjustments necessary to recover the costs associated with the collection and treatment system through
base and volume charges. The study requires analysis of MSD's compliance with a Consent Decree due to
Combined Sewer Overflows from their system.
City of Wilmington I Financial Planning and Rate Study; Delaware; 2021
Consultant - Black & Veatch. Mr. Villalobos assisted in the development of a Rate Study which
encompasses developing a financial plan for the Water/sewer Enterprise Fund of the city of Wilmington.
The financial plan is based on the analysis of operations and maintenance as well as debt service for the
capital program and the projected revenue requirements. This plan is used to perform a cost of service
analysis, rate design, and the rate adjustments needed to meet the utility's financial objectives.
BLACK & VEATCH 14 RESUMES 23
Agreement No. 7576
Puerto Rico Water and Sewer Authority I Consulting Engineer's Report; Puerto Rico;
1999-2003
Consultant - Black & Veatch. Mr. Villalobos analyzed the financial and operational performance of the
Puerto Rico Water and Sewer Authority (PRASA); as required by their bond issue Trust Agreement.
The analysis consisted of a comprehensive analysis of the institution including rebuilding their financial
statements from base data under three standards: GAAP, Utility Basis and Cash Basis and a projecting the
institution's financial condition and ability to meet its financial obligations.
The report also included an analysis of its Capital Improvement Program, its funding and its ability to
provide an adequate level of investment that would allow for an appropriate level of service and compliance
with regulations.
His involvement also included the analysis of physical condition of its infrastructure. Mr. Villalobos led
teams of experts on the inspection of close to 200 water and wastewater treatment plants and over 500
other facilities. He personally inspected most of the Water and Wastewater treatment plants and a large
sample of other facilities; over the course of three years. This resulted in an accurate and comprehensive
assessment of their infrastructure; the most complete database of these facilities at the time; and a base
for planning for major repairs, maintenance and reinvestment for the institution,
Detroit Water and Sewerage Department I Revenue Bond Compliance Report; Detroit,
Michigan, United States; 1999-2003
Consultant - Black & Veatch. Mr. Villalobos analyzed operational performance of the Detroit Water and
Sewerage Department (DWSD) including the analysis of physical condition of its infrastructure. Mr.
Villalobos personally inspected the Water and Wastewater treatment plants owned and operated by the
City of Detroit and a significant sample of the pump stations; over the course of three years. This resulted
in an accurate and comprehensive assessment of their infrastructure, as required to comply with revenue
bond issuance covenants.
City of Memphis I Revenue Bond Compliance and Succession Planning Report;
Memphis, Tennessee, United States; 2003
Consultant - Black & Veatch. Mr. Villalobos analyzed operational performance of the Memphis water and
sewerage department including the analysis of physical condition of its infrastructure. The department at
this time had a number of senior staff that would retire in the following years and proposed a succession
plan to assure a seamless transition. Mr. Villalobos personally inspected a significant sample of Water and
Wastewater facilities and interviewed staff regarding this transition. The facilities were in good condition,
and the replacement staff had sufficient seniority and working knowledge of the facilities as to assume the
positions of the retiring senior staff.
Gas and Electric
Public Service Enterprises Group (PSEG) I Cost -Benefit Analysis of Electric and
Natural Gas Capital Investments; Newark, New Jersey; 2021
Consultant - Black & Veatch. Mr. Villalobos was the lead analyst in the development of a cost -benefit study
to evaluate the feasibility of the utility's proposed Infrastructure Advancement Program (IAP). The program
proposed an accelerated deployment and recovery of the costs associated with hardening, reliability and
resiliency of the electrical grid and gas metering stations in Newark, New Jersey, The study required the
analysis of Value of Lost Load, avoided Capital and Labor expected from the accelerated deployment of
infrastructure. The study provided a technical standing for the utility to present its case and was awarded
$351 million in accelerated recovery for the program.
BLACK & VEATCH 14 RESUMES 24
Agreement No. 7576
CenterPoint Indiana I Gas Revenue Requirements and Requirements Allocation Study;
2021
Consultant - Black & Veatch. Mr. Villalobos assisted in the development of a comprehensive study to
determine revenue requirements and revenue allocation for gas rate adjustments, in accordance with the
corresponding rate case Settlement Agreements for two separate service areas. The study results are part
of the compliance filings related to each settlement agreement.
Puerto Rico Electric Power Authority I Economic Feasibility Report; San Juan, Puerto
Rico; 2021
Consultant - Black & Veatch. Mr. Villalobos served as a Consultant to the Puerto Rico Electric Power
Authority in the evaluation of reinvestment in 10 Hydroelectric power generation plants in different
locations throughout the island. The project included improving four plants currently generating and
rehabilitation for use of six others out of service facilities. The total investment was determined based on
the best use of capital for the utility, on proposed investments that reach up to $180 million dollars. The
analysis considered the Net Present Value (NPV) of each investment and select those which have a
positive NPV, the greatest impact for the company or that have strategic value as water supply to other
facilities downstream.
PRESENTATIONS & PUBLICATIONS
Jason Kaufman, P E.. "Stormwater Resilience: Infrastructure Planning and Funding for Today and the
Future." Florida Stormwater Association Winter Conference. November 2023.
BLACK & VEATCH 14 RESUMES 25
Agreement No. 7576
Catherine Kieu
Analyst
Catherine Kieu is a consulting analyst at Black & Veatch Infrastructure Advisory, based
in Irvine, California. She supports the rates and regulatory sector, assisting in rate
studies and business process optimizations for water, wastewater, and electric
utilities.
PROJECT EXPERIENCE
City of Tracy I Staffing Analysis; California; 2025-In-Progress
Analyst - Black & Veatch. Ms. Kieu assists in conducting a staffing analysis to evaluate
areas of organizational improvement within the water and wastewater utility division.
Unified Government of Wyandotte County I Stormwater Master Plan;
Kansas, United States; 2024- In- Progress
Analyst — Black & Veatch. Ms. Kieu assists with the stormwater billing data updates,
billing reports, investigations of unbilled parcels, and credits/appeals advisory support.
Inland Empire Utilities Agency I Water, Wastewater, and Recycled
Water Rate Study; California; 2024-In-Progress
Analyst — Black & Veatch. Ms. Kieu is assisting with the development of the financial
plan, cost of service model, and rate design of the Water, Wastewater, and Recycled
Water Rate Study for Inland Empire Utilities Agency. IEUA is a regional wastewater
treatment agency and wholesale distributor of imported water, serving seven sewage
collection agencies and nine water retail agencies. The objective of this study is to
identify new 5-year rates for IEUA's customer agencies to recover operational and
capital costs.
City of Wilmington I General Consulting Services; Delaware; 2024-In-
Progress
Analyst — Black & Veatch. Ms. Kieu is assisting in the update of the water and sewer
rate study model. The financial plan is based on the analysis of operations and
maintenance as well as debt service for the capital program and the projected revenue
requirements_ This plan is used to perform a cost of service analysis, rate design, and
the rate adjustments needed to meet the utility's financial objectives.
Ms. Kieu manages the stormwater monthly billing task. This involves monthly
maintenance of the city's storm water database. It entails the processing of monthly
parcel data and tracking of storm water credits and appeals to generate the storm
water bill for approximately 28,000 accounts.
50 Largest Cities Rate Survey; California; 2023-2024
Analyst - Black & Veatch. Ms. Kieu assisted in updating an internal water and sewer
rate survey of the 50 largest cities in the United States. The survey focused on
comparing typical bills for various customer classes at different consumption intervals.
The survey provided utilities the ability to see how they compare to the largest water
and sewer utilities in the across the country.
BLACK & VEATCH 14, RESUMES 26
Agreement No. 7576
Town of Clayton, 12024 Water and Sewer Rate Study; North Carolina; 2024
Analyst —Black & Veatch, Ms. Kieu assists with the annual update of the water and sewer financial plan.
This is intended to develop suitable rates that would allow the client to meet annual revenue requirements.
Carnrosa Water District ► Water and Sewer Rate Study; California; 2024
Analyst — Black &Veatch. Ms. Kieu assisted with the update of the water and sewer rate model, TNs study
is intended to develop suitable rates that would allow the client to meet annual revenue requirements.
Port of San Diego I Engineering Staff Analysis; San Diego, California; 2023
Analyst - Black & Veatch. Ms. Kieu assisted with the updated of the 2023 Engineering Staff Analysis Report.
BLACK & VEATCH 14. RESUMES 27
Agreement No. 7576
5. Utility rate structure clients
We encourage you to contact our references to learn firsthand about our
commitment to delivering high -quality work and our responsive service —key
reasons why clients continue to return to us for their ongoing needs.
With over 80 years of experience in financial planning and rate -setting, Black & Veatch is recognized by
regulatory authorities as a reliable industry leader. Our proven record includes numerous successful water
and wastewater cost -of -service studies, as well as obtaining multi -year rate approvals for municipal clients.
Since 1975, our team of specialists has supported California water and wastewater agencies to ensure
compliance with both state and local regulations.
Over the past twenty years, we have completed hundreds of management consulting engagements for
more than 100 public and private organizations throughout California. Our experts possess significant
experience assisting utilities with Proposition 218 challenges and developing sustainable rate structures.
Notable projects in cities such as Los Angeles, Tracy, Menlo Park, and Yuba City demonstrate our capacity
to respond to regulatory changes, restructure rates, secure City Council approval for major initiatives, and
prepare accessible rate reports for the public. This comprehensive expertise positions us to deliver El
Segundo a transparent, legally compliant, and robust rate study designed to support enduring financial
stability.
Provided in the following sections are projects that highlight our California experience.
List of representative projects
The following provides a high-level summary of representative projects undertaken by Black & Veatch.
T
U
O
CD
(n
N
L.
y
co
U
C
'C
U
L.L
C
Cn
7
U)
C
co—
cn
C
O
O
coCY)
O
(n
=
O
C
E
OO
.d
O
a
c
O
O
0-
-he
co
Client
cco
0
U
U
5
V
a
OO`o
LOU
0-
M
i
1
w
Banning, City of
•
•
•
•
•
•
Burbank, City of
•
•
•
•
•
•
California American Water
•
•
•
California State University — Channel Islands
•
•
•
•
•
•
Camrosa Water District
•
•
•
•
•
•
•
•
Claremont, City of
•
•
•
Coachella Valley Water District
•
•
Escondido, City of
•
•
•
Garden Grove, City of
•
•
•
•
•
•
Grand Terrace, City of
•
•
•
•
•
Inland Empire Utilities Agency
•
•
•
•
•
•
•
•
Las Virgenes Municipal Water District
•
•
•
•
•
•
BLACK & VEATCH 15 UTILITY RATE STRUCTURE CLIENTS 28
Agreement No. 7576
T
U
CD
N
cA
U
U-
O
CO
7
C
C
O
O
(n
C
C
Cn
O
U
O
Y
c0
C y
U
U
O
E
U
C
U
N
r
O
..,
U
C
U C
fA C
`�
U m
U t
O
C
O
a
N
Y
0)
c0
Client
Cr
U
U
U
U d
2 06
w
(�5
Lu
Leuca is Wastewater Distract
•
•
♦
•
•
Lomita, City of
•
•
•
•
Long Beach Utilities
6•
•
•
LASAN
•
•
•
•
6
•
•
•
Lynwood, City of
•
•
•
6
•
Manhattan Beach, City of
•
•
•
•
'
Menlo Park, City of
•
•
•
•
•
Napa, City of
•
•
•
•
6
•
6
Newport Beach, City of
•
•
•
6
•
6
Oakland, City of
•
•
•
•
•
Orange, City of
•
•
•
6
•
Oxnard, City of
•
•
•
6
•
•
•
Pico Rivera, City of
•
•
•
4
•
4,
Port Hueneme, City of
•
•
•
•
•
San Bernardino, County of
•
•
•
•
•
San Clemente, City of
•
•
•
•
•
•
San Diego, City of
•
•
•
•
•
•
•
•
San Diego, County of
•
•
•
•
•
•
•
•
16
Santa Ana, City of
•
•
•
•
•
•
Santa Clara, City of
•
•
•
•
•
•
Simi Valley, City of
•
•
•
•
•
St. Helena, City of
•
•
•
•
•
6
Tracy, City of
•
•
•
•
•
•
6
Vallecitos Water District
•
•
•
•
•
6
Victor Valley Water Reclamation District
•
•
•
•
•
•
Yuba Cit , City of 1
•
•
•
•
•
•
BLACK & VEATCH 1 5. UTILITY RATE STRUCTURE CLIENTS 29
Agreement No. 7576
I'll 01111
Wastewater Program Services
City of Los Angeles, Bureau of Sanitation I California, United
States
Black & Veatch has provided various wastewater
program -related financial services to the City of Los
Angeles since 1986.
These services have included bond feasibility studies, development of
sewerage facilities charges, assistance with annual wastewater revenue
programs, and various industrial waste management studies. Select projects
are described below.
Key projects:
Performed a wastewater cost of service and supported with public
outreach. We worked with the City to conduct its first cost -of -service study
since 20111. This effort involved exterisive public outreach via over 25
community rneetings, We developed a cost -of -service model that replaced
the City's circa 20111 Black & Veatch nriodel to feature user, enhancements
and train staff on its Use, 'Hie Oty examined possVe changes to its rate
structure but ultimately retained its original volumetric only structure.
Assisted the City through Proposition 218 requirements.
The City to develop its initial Sewerage Facility Charges (SFCs) in 1 989�
Srnc,e then, we have updated cost recovery methodologies (incrementai to
buy -in) as the City's systems have grown, As part of this work, we assisted
the City with Updahng O'ie Sewerage Generation Factors, which are the
typical flow and wastewater strength characteristics, f vahous facilities
and the basis of applying the SFCs to new customers.
Assisted the City in performirig the, annual reconcilotion of charges to its
regional wholesale custorners, The City has agreements with 29
surrounding agencies to provide wastewater trealnlelt services The
reconciliation required updates of O&M and capital costs, flow and strength
characteristics, cost aliocationis, and facilities chargos associated with the
backbone wastewater system.
Agreement No. 7576
Water, Recycled Water, and
Wastewater Rate Study and System
Development Charges
City of Santa Clara I California, United States
Black & Veatch has assisted the City of Santa Clara, CA,
with water, recycled water, and sewer financial
consulting services since 2017.
The City has sought our guidance and expertise with financial planning, cost of
service, rate design, system development charges, and public participation.
The City sets rates annually; therefore, Black & Veatch has assisted annually
since 2017.
Key highlights:
• Develop a three-year financial plan for the City's water, recycled water, and
sewer utilities. While the City establishes rates on annual basis, the three-
year financial plan provides insight to the City Council as to upcoming
increases. For the City, recycled water is a standalone utility from the water
utility.
• Establish a long-term capjtah financing plan defining the funding sources
for the capita program I'he plan identifies new debt ,proceeds for. the
regional wastewater treatrnent faciinty, The joint owned regional
wastewater, trey tnient facility has an extensive panned capital
improvement program; therefore, the City will need to issue short-term
commercial paper and long-term revenue bonds.
• Update the existing capital connection charges for sewer, developed a new
connection charge for water, and reviewed the storm drain fee.
• Provided support with the Proposition 218 process from reviewing public
hearing presentation, Proposition 218 notice, to attending the public
hearing where rates were adopted.
Ann/Alberto - ...Appreciate the good work you've done each and every
year, you have been rock -solid in supporting the City of Santa Clara with
its rate modeling and everything to do with rates. Much appreciated!
iry Welling
'anta Clara
Agreement No. 7576
Water, Recycled Water, and
Wastewater Rate Study
City of Banning I California, United States
The City of Banning, CA, engaged Black & Veatch to
assist with financial planning, cost of service, rate
design, and City Council proceedings.
Black & Veatch assisted the City with water, recycled water, and wastewater
financial consulting services in 2021 and updated the financial model in 2024.
Key highlights:
• Developed a mul[iyear financial plan for the City's water and wastewater
utility fund to determine the revenue adjustments needed for a hve-year
forecast period. The City had sought to separate recycled water frorn the
wastewater fund but derided : to continue with its current operation until
WWTP could be upgraded.
• Established a capital financing plan defining tine sources and uses of
funding for the water and wastewater capital improvement program ; The
City evaiUated debt instruments as an alternative to cash funding the CIP
The 2024 update is, incorporating increased capital project costs
associated with tire wastewater treatment upgrades and the incorporation
of capital costs to treat Cr6 in the water system.
• Updated the rate structure to include a monthly fixed charge based on
meter size and a three-tier consumption charge. The tier breakpoints were
reassessed and adjusted to reflect new water conservation requirements.
In addition, we designed new drought rates that match the City's different
water shortage contingency plan stages.
Agreement No. 7576
Potable Water, Non -Potable Water, and
Sewer Rate Study
Camrosa Water District I California, United States
Black & Veatch has assisted the Camrosa Water District,
CA, with financial consulting services since 2012.
The District has sought our guidance and expertise with financial planning,
cost of service, rate design, system development charges, and miscellaneous
revenues. The District sets rates on a five-year basis; therefore, Black & Veatch
has assisted with three rate cases.
Key highlights:
Developed a five-year financial plan for the City's potable, non -potable, and
sewer utilities. We assisted in separating the non -potable system from the
potable system by identifying revenue and expenditures from potable
water. The District anticipated significant costs on the non -potable system
and did not want to burden potable customers for non -potable system
upgrades.
Assisted the District in presenting the findings to the Board of Directors at
committee and full Board of Director meetings We worked closely with the
General Manager, Finance Manager, and outside Legal Counsel to approve
the rates.
Updated the District's capacity fees for potable water and developed new
non -potable water capacity fees. In a period of significant housing
development and infrastructure needs, the District wanted growth to pay
for growth.
Developed the basis for the District's miscellaneous fees. The City felt that
the level of service was not commensurate with the fees, therefore sought
assistance in developing a methodology that accounted for full costs and
state regulations.
Black & Veatch provided us with a top-notch team in Ann And
66 Alberto that were easy to work with, very knowledgeable, and
incredibly responsive to our needs.
Tamara Sexton
Dt
Agreement No. 7576
6. Work plan
Project understanding
The City of El Segundo (City) is seeking a qualified consultant to provide financial ratemaking services to
conduct a Water and Wastewater Rate Study (Study, Project). Located in the South Bay of Los Angeles
County, the City provides water and wastewater services to its residents and businesses. Like many
utilities, the City must balance the diverse needs of managing its infrastructure and operations, increasing
resilience to environmental impacts such as water conservation and regulatory compliance — all while
delivering safe, reliable, and affordable services to its customers in a fiscally responsible manner.
The City has a service area of about 5.5 square miles serving about 17,000 residents and a vibrant business
sector comprised of hospitality, aerospace and defense, bioscience, information technology, energy, and
creative media. To provide water and wastewater municipal water and wastewater services, the City relies
on its systems.
The water system distributes about 10,000 acre-feet through a below -ground infrastructure network
composed of two import water connections and 65 miles of pipeline. The City obtains its water supply from
Metropolitan Water District (MWD) via West Basin Municipal Water District (WBMWD). The City also has
access to recycled water from WBMWD.
The wastewater system is a collection only system that transports all sewer flow to the City of Los Angeles
or the Los Angeles County Sanitation Districts for treatment. The system consists of about 57 miles of
gravity and forced mains and nine lift stations.
We understand that the success of this study lies in developing sound financial plans and establishing a
clear cost -nexus for the rate structure. Success can be measured as the adoption of adequate revenue
adjustments, and a rate design that helps the City achieve fiscal stability and funding adequacy to meet its
operational and capital investment needs while mitigating customer bill impact.
Scope of work
Task 1. Project management and coordination
Each task involves a project management and coordination component that includes general project
coordination, staff direction, budget/scope/schedule management, and billing/invoicing activities over the
course of the Study. Specific subtasks include:
Coordinate project activities with City staff; provide direction as required to meet project objectives and
deadlines; maintain adequate levels of staff throughout the course of the project; review all study -
related work; and provide quality assurance on the work carried out.
Perform general administrative duties, including client correspondence, invoicing, budget/scope
management, project documentation, and administer project controls using our proprietary internal
project tracking system,
p Develop a detailed project schedule including deliverables, review periods, public meetings and
milestones.
Conduct monthly progress meetings with City project manager to provide progress status (max 8
meetings).
BLACK & VEATCH 16 WORK PLAN 34
Agreement No. 7576
Task 2. Data collection and review
Prepare a formal data request for pertinent financial and operational documents to be used in the project.
At a minimum, the following documents will be requested:
a Summary of revenue budgets. Data covering rate schedules, the billing units for all customer classes
for the most recent five years, and other miscellaneous revenues.
■ Summary of operation and maintenance (0&M) budgets. Data covering known or projected changes to
0&M expenses, such as labor costs, contract services, utilities, etc.
a A ten-year capital improvement project plan with estimated costs and scheduling.
% A detailed current fixed asset listing for all water and wastewater infrastructure.
The latest documents related to debt issues include official statements that provide information about
debt service payments, bond covenants, debt service coverage requirements, etc.
a Latest master plans, Urban Water Management Plan, Sanitary Sewer Management Plan, previous rate
studies, and other relevant policy, procedural, and regulatory documents.
Task 3. Financial plan and revenue requirements
Develop a 30-year financial plan for the water and wastewater utilities. The financial plans will consist of
two main elements: (1) Revenues and (2) Revenue Requirements. The following are specific elements of
each component.
Revenues
The development of the revenues will incorporate the following elements:
• BLIfing UPnit Projection : Obtain billing units, which consist of metered connections, private fire
connections, water consumption, wastewater connections, and billed sewage flow for a historical five-
year planning period. Analyze historical and projected growth trends, climatological patterns, the
potential for adding/losing major utility customers, and changes in customer class patterns.
• Rev nue Pc o: Determine the revenue under existing rates by applying the existing rates to
projected billing units. These revenues serve as the basis for assessing future revenue adjustments.
The revenue projections will be based on January 1, 2025, rates.
• Mist piarj Q_Qsyenu&: Incorporate revenues generated from other existing sources, such as interest
earnings and other miscellaneous revenues. These revenue sources are important for determining the
net level of future revenues that need to be generated from rates.
Revenue requirements
The development of revenue requirements will incorporate the following elements:
ra iQr_ ° nd Main .nd n I x�c�,s , : Project 0&M expenses are based on a review of historical
financial records and trends and available budget estimates of future operation and maintenance
expenses. Projections will recognize estimated increases in the billing units and the potential effects of
continued inflation on cost levels, the addition of new water and wastewater system facilities, any
anticipated changes in operation and staffing, and other factors that may influence future expense
levels.
d: Develop financing plans for planned capital
improvement programs as described in Task 4.
Determine the principal and interest payments on outstanding debt obligations
and any future revenue bonds or state revolving fund loans for capital improvements. The debt service
BLACK & VEATCH 1 6. WORK PLAN 35
Agreement No. 7576
on future bonds and sizing will consider the bond proceeds required for construction, issuance costs,
and compliance with any reserve requirements of the authorizing resolution.
R s cwe &nd'un Examine the reserve fund requirements and balances for adequacy as discussed in
Task 4.
Task 4. Capital funding and reserve analysis
Develop a capital funding strategy and review reserves that will help the City execute large capital projects.
Specific subtasks include:
a i m r v me _ rr gram: A review
of the City's capital improvement
program will be performed. The review
will focus on the type, timing, and stage
(planning, ready to bid, etc.) of the
capital projects as shown in Figure 1.
These projects will be in addition to the
recurring annual capital projects
incurred.
Capital Financing: The funding strategy
zortcozd2s zdzsmzdw zoasaozd�ra zoeimzdsd
,
Parrcd Reclacem rt Cos: by Flarnng Period (2019 5;
Dl.nnmg Vred 5u211ozJ's .Olo to 20'J03,o:4:C�.IIII—p�
Pe r
55KI$0$M
3.232 assets
/'llr
$4 R
53PA
I (Af(l
I�
1
YSY
an
52P"
y f44
,�
gill
E'W
�
2.020 2025 2030
2035 2040 zoos 2d50
will incorporate cash and debt
financing. There are several debt FIGURE 1: CAPITAL PLAN EXPENDITURES
financing mechanisms used in the industry by water and wastewater utilities. Each has advantages
and disadvantages that will be examined and recommended for the City.
■ F n S L c : Financing plans for the water utility's planned capital projects will be developed
based on the schedule and costs. The recorrirmended funding strategy of the capital projects will be
based on consideration of available funding on hand, internal loans, revenue bonds, general obligation
bonds, WIFIA loan, and pay as you go financing.
Reserve Funding: Applicable reserves for operating and capital along with any relevant financial policies
established by the City, Adequate reserve levels will be recommended based on a review of reserve
funding requirements, industry standards, and state regulations.
Virtual Meeting #1 will be held to review CIP projects, carry-over rates, encumbrance policies, and project
funding approaches (e.g., just -in -time financing or fully funded).
Task 5. Long term financial resilience
Develop long-term cash flow analyses for
the water and wastewater systems over the
forecast period of 30 years showing a
comparison of annual revenue under
existing rates with annual revenue
requirements.
As a part of the cash flow analyses, we will
determine the annual revenue increases that
may be necessary to fully fund all
obligations, meet coverage ratios, and
reserve balances. The analyses will also
incorporate drought, water supply
adjustments, and different capital projects.
CITY OF MANHATTAN BEACH
WASTEWATER OPERATIONS FUND
w
i a gip
..Y2w�'�"�u�.:..;,=ww..._
FIGURE 2: FINANCIAL PLAN DASHBOARD EXAMPLE
BLACK & VEATCH 16 WORK PLAN 36
WASTEWATER OPERATIONS FUND
w
i a gip
..Y2w�'�"�u�.:..;,=ww..._
FIGURE 2: FINANCIAL PLAN DASHBOARD EXAMPLE
BLACK & VEATCH 16 WORK PLAN 36
Agreement No. 7576
Virtual Meeting #2 will be held to establish a financial plan over the forecast period and establish the target
revenue to be utilized in performing the cost of service and rate design analyses.
Task 6. Cost of service analysis
Perform a cost -of -service analysis to establish a reasonable nexus between costs incurred in providing
service and the rates and charges designed to recover the costs of providing service. The analysis will
follow industry -accepted methodologies in AWWA and WEF manuals. The analysis includes:
Aw�o_u4 i `o f r is° Determine the cost of service to be met with rates and charges from the net
revenue requirements. The net revenue requirements equal revenue requirements less other operating
and non -operating revenues not associated with rates and charges.
Units of Service. Develop an estimate of the units of service associated with each cost -causative
element. The units of service will be estimated based on the service characteristics, such as
consumption, connections, bills, etc., defined for each customer class.
■ Function 1 AiV ca ions: Identify the costs of service by functional cost categories. The functional
cost categories for water include water supply, pumping stations, treatment, transmission &
distribution, storage, meters, hydrants, and general facilities. The functional cost categories for
wastewater include collection, lift stations, and general facilities.
c aCarr Alllca Allocate the costs to the various cost -causative components specific to the
services provided. The cost -causative allocations for water will recognize average annual flow, peak
flow rates, meters & services, customer, and fire protection. The cost -causative allocations for
wastewater will recognize volume, capacity, and customer.
■ dGigrof C s uu mer Clan; Determine the unit costs for the utilities by cost causative
component and distribute costs to each customer base based on their demand on the systems.
Task 7. Rate design alternatives
While cost -of -service is a beginning step that can inform class revenue apportionment and rate design,
other factors, such as rate stability and recent Proposition 218 legal rulings, should be considered.
Black & Veatch will work with the City to develop/update rates that meet these objectives, are Proposition
218 compliant, and satisfy other City's policies, pricing objectives, and regulatory requirements. In
developing proposed rates, the evaluation will include:.
• Existing Rates: Update the existing rate structures and evaluate them fortheir ability to recover service
costs from each customer class equitably. Existing rates consist of:
• Water: Fixed charge by meter size plus inclining tier consumption charges for single residential
family and fixed charge by meter size plus uniform consumption charges for non-residential
customer classes. The City also has fixed charges by meter size for private fire service.
• Recycled Water: Declining tier consumption charges and uniform consumption for Chevron, Ultra
Chevron, and NRG.
• Wastewater: Fixed charge for single family residential, fixed charge plus uniform consumption
charges for non-residential classes.
■ Proposed Rates: Develop two alternative rate structures, if desired based on discussions with City staff.
Since 2020, there have been several court rulings that the City will have to consider with regards to rate
structures.
• Any alternative rate structure will be developed to recover the revenues needed for operations,
recognizing equitable cost recovery by customer class and complying with applicable regulations,
BLACK & VEATCH 16 WORK PLAN 37
Agreement No. 7576
specifically Proposition 218. There must be a reasonable nexus between the cost incurred in providing
the service and the rates and charges developed.
Cam re Tytil , ill. Develop typical bill comparisons for single-family, commercial, and industrial
customers to show the potential impact of the proposed rates.
.rr'wnp�k� ilifies: Obtain rate data from comparable jurisdictions to help the City understand how
they compare to their neighbors. The data obtained will be limited to 5 comparable agencies for the
water and wastewater utilities.
Virtual Meeting #3 will be held with City staff to discuss all the alternative rates structures.
Task 8. Community outreach and stakeholder engagement
Provide three (3) in -person public presentations to solicit input on the study, present findings,
recommendations, and results of the study to the City Council. We will discuss the timing of such
presentations with City staff at the kick-off meeting. We would suggest the following schedule of public
workshops/presentations:
• Presentation #1: Present draft results of the study and to solicit input from the City Council on study
findings and recommendations.
• Presentation #2: Present at study completion to City Council to get approval to initiate the Proposition
218 notification process and set the date for a public hearing.
aPresentation #3: Present and/or support to City staff during the public hearing.
The workshops/presentations will provide clear and consistent messaging that explains the proposed rates
and how they support reliability, regulatory compliance and reinvestment. In addition, we will support the
City by providing guidance throughout Proposition 218 process to ensure legal and procedural compliance.
Task 9. Deliverables
Throughout the project, we will provide the following deliverables.
■ Reports: Prepare a Draft and Final Water and Wastewater Rate Study reports. The reports will
document the findings and make recommendations for City rates. The report will include, at minimum,
the following sections: (i) Executive Summary, (ii) Description of System, (iii) Methodology, (iv) Financial
Plan, (v) Cost of Service Analysis, (vi) Rate Design, and (vii) Appendix.
■ Presentations: Prepare presentation decks for City Council meetings/workshops, and Proposition 218
public hearing. The presentation decks are limited to three (3) different decks.
Rate Models: When working with complex models, we
believe people learn better through hands-on activities and
effective knowledge transfer. Finally, we will have City staff
review the models that we develop as we develop them, so
you trust the results generated.
Figure 3 summarizes the robust features of our financial/cost of
service rate model. Our MS -Excel -based model will be provided
at no additional cost or licensing fees and includes key features
such as the following:
IN Visually intuitive user interface and navigation.
1 Logical organization of data flow in the model.
Integrated
Financial
Model
Dynamic
Financial
Dashboard
a Centralized data inputs for all key assumptions FIGURE 3: FINANCIAL MODEL FEATURES
BLACK & VEATCH 16 WORK PLAN 38
Agreement No. 7576
Functionalization of costs and calculation methodologies based on industry principles.
Ability to run and save multiple cash flow scenarios that reflect changes to key financial assumptions
and parameters such as the level of capital improvement project to be funded, customer growth rates,
and the availability of funds (cash).
The models will be developed using Microsoft Excel. The models will be specifically tailored and designed
to recognize unique needs, characteristics, and information base. Further, models will incorporate required
features necessary to permit "in-house' application by City staff.
Black & Veatch will provide an electronic copy of each model (in MS excel format) to the City once the
study is complete.
BLACK & VEATCH 16. WORK PLAN 39
Agreement No. 7576
7. Project timeline
The study schedule assumes City Council award in April 2026 and notice to proceed in May 2026. The
study will span from May 2026 to April 2027 with rates effective on July 1, 2027.
TASK DESCRIPTION
Task I Project Management and Coordination
Task 2 Date Collection and Review
Task 3 Financial Plan and Revenue Requlremems
Task 4 Capital Funding and Reserve Analysis
Task 5 Lang Term Financial Resilience
Task 6 Cost of Service Analysis
Task Rate Design Alternatives
Task B Community Outreach and Stakeholders Engagement
Task 9 Deliverables
2026 2027 -,--
MAY JUNE JUL AUG SEP OCT NOV DEC JAN FED MAR APR
I
1
Po lOck-W Meeting Q"Report VirtualMeeting *CflyCouncllMeeting fflFlnalRepon Computer Model
BLACK & VEATCH 17, PROJECT TIMELINE 40
Agreement No. 7576
Based on the Scope of Work, Black & Veatch proposes to perform the scope on a time -and -materials basis
for a not -to -exceed amount of $97,845 inclusive of anticipated direct expenses, as shown in Table 1. Direct
expenses include but are not limited to mileage, car rental, meals, and reproduction costs,
TABLE 1: PROJECT COSTS
Hourly Billing Rate
$395
$290
$315
$260
$210
Task 1 Project Management
0
0
11
21
0
and Coordination
Task 2 Data Collection and
0
0
0
3
10
Review
Task 3 Financial Plan and
0
0
6
15
33
Revenue Requirements
Task 4 Capital Funding and
0
2
6
13
24
Reserve Analysis
Task 5 Long Term Financial
1
0
3
8
16
Resilience
---- -- --- - -- --- - - -- - - -- - - -- - -- -
Task 6 Cost of Service Analysis
0
3
7
16
46
Task 7 Rate Design
1
0
7
12
39
Alternatives
Task 8 Community Outreach
0
0
12
12
12
and Stakeholders Engu genneM.
Task 9 Deliverables
3
0
10
12
32
Total Hours & Fee
5
5
62
112
212
Direct Expenses
Total Fee
Additionali
Services provided within the Work Plan and additional professional services authorized by the City via an
addendum to the agreement are proposed to be billed using the rates below. These rates are effective
through December 31, 2026, and are subject to increase on January 1, 2027.
$8,925
$2,880
$12,720
C 1:•1
$6,780
$16,895
$13,910
$9,420
$14,175
$96,595
$1,250
$97,845
BV,COM BLACK & VEATCH 18 COST ESTIMATE 1
Agreement No. 7576
TABLE 2: HOURLY RATES
Analyst
////// /o
1
Analyst
$235
ConsultantSr.
.1
Manager•
•1
Project ManProject
Direct
*PlusExpenses
Manner of Payment
All invoices submitted for payment will be made based on hours of work completed during the study and
any direct expenses incurred during the invoice period. Invoices shall cover a period of not less than a
calendar month and payment is net 30 days from invoice date.
BV COM BLACK & VEATCH 18- COST ESTIMATE