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HomeMy WebLinkAboutRaftelis 2026-05-19COU No. 2526-219 PAGE 1 OF 7 AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES This Agreement, made and entered into this 19th day of May, 2026 (“Effective Date”), by and between CITY OF UKIAH, CALIFORNIA, hereinafter referred to as "City" and Raftelis Financial Consultants, Inc., a corporation organized and in good standing under the laws of the state of California, hereinafter referred to as "Consultant". RECITALS This Agreement is predicated on the following facts: a. City requires consulting services related to Solid Waste System Five-Year Review Consulting Services. b. Consultant represents that it has the qualifications, skills, experience and properly licensed to provide these services, and is willing to provide them according to the terms of this Agreement. c. City and Consultant agree upon the Scope-of-Work and Work Schedule attached hereto as Attachment "A", describing contract provisions for the project and setting forth the completion dates for the various services to be provided pursuant to this Agreement. TERMS OF AGREEMENT 1.0 DESCRIPTION OF PROJECT 1.1 The Project is described in detail in the attached Scope-of-Work (Attachment "A"). 2.0 SCOPE OF SERVICES 2.1 As set forth in Attachment "A". 2.2. Additional Services. Additional services, if any, shall only proceed upon written agreement between City and Consultant. The written Agreement shall be in the form of an Amendment to this Agreement. 3.0 CONDUCT OF WORK 3.1 Time of Completion. Consultant shall commence performance of services as required by the Scope-of-Work upon receipt of a Notice to Proceed from City and shall complete such services within twenty (20) weeks from receipt of the Notice to Proceed. Consultant shall complete the work to the City's reasonable satisfaction, even if contract disputes arise or Consultant contends it is entitled to further compensation. 4.0 COMPENSATION FOR SERVICES 4.1 Basis for Compensation. For the performance of the professional services of this Agreement, Consultant shall be compensated on a time and expense basis not to exceed a guaranteed maximum dollar amount of $39,490. Labor charges shall be based upon hourly billing rates for the various classifications of personnel employed by Consultant to perform the Scope of Work as set forth in the attached Attachment A, COU No. 2526-219 PAGE 2 OF 7 which shall include all indirect costs and expenses of every kind or nature, except direct expenses. The direct expenses and the fees to be charged for same shall be as set forth in Attachment A. Consultant shall complete the Scope of Work for the not-to- exceed guaranteed maximum, even if actual time and expenses exceed that amount. 4.2 Changes. Should changes in compensation be required because of changes to the Scope-of-Work of this Agreement, the parties shall agree in writing to any changes in compensation. "Changes to the Scope-of-Work" means different activities than those described in Attachment "A" and not additional time to complete those activities than the parties anticipated on the date they entered this Agreement. 4.3 Sub-contractor Payment. The use of sub-consultants or other services to perform a portion of the work of this Agreement shall be approved by City prior to commencement of work. The cost of sub-consultants shall be included within guaranteed not-to-exceed amount set forth in Section 4.1. 4.4 Terms of Payment. Payment to Consultant for services rendered in accordance with this contract shall be based upon submission of monthly invoices for the work satisfactorily performed prior to the date of the invoice less any amount already paid to Consultant, which amounts shall be due and payable thirty (30) days after receipt by City. The invoices shall provide a description of each item of work performed, the time expended to perform each task, the fees charged for that task, and the direct expenses incurred and billed for. Invoices shall be accompanied by documentation sufficient to enable City to determine progress made and to support the expenses claimed. 5.0 ASSURANCES OF CONSULTANT 5.1 Independent Contractor. Consultant is an independent contractor and is solely responsible for its acts or omissions. Consultant (including its agents, servants, and employees) is not the City's agent, employee, or representative for any purpose. It is the express intention of the parties hereto that Consultant is an independent contractor and not an employee, joint venturer, or partner of City for any purpose whatsoever. City shall have no right to, and shall not control the manner or prescribe the method of accomplishing those services contracted to and performed by Consultant under this Agreement, and the general public and all governmental agencies regulating such activity shall be so informed. Those provisions of this Agreement that reserve ultimate authority in City have been inserted solely to achieve compliance with federal and state laws, rules, regulations, and interpretations thereof. No such provisions and no other provisions of this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Consultant and City. Consultant shall pay all estimated and actual federal and state income and self- employment taxes that are due the state and federal government and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for himself and his employees, if any. Consultant agrees to indemnify and hold City and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by Consultant, including the legal costs associated with defending against any audit, claim, demand or law suit. COU No. 2526-219 PAGE 3 OF 7 Consultant warrants and represents that it is a properly licensed professional or professional organization with a substantial investment in its business and that it maintains its own offices and staff which it will use in performing under this Agreement. 5.2 Conflict of Interest. Consultant understands that its professional responsibility is solely to City. Consultant has no interest and will not acquire any direct or indirect interest that would conflict with its performance of the Agreement. Consultant shall not in the performance of this Agreement employ a person having such an interest. If the City Manager determines that the Consultant has a disclosure obligation under the City’s local conflict of interest code, the Consultant shall file the required disclosure form with the City Clerk within 10 days of being notified of the City Manager’s determination. 6.0 INDEMNIFICATION 6.1 Insurance Liability. Without limiting Consultant's obligations arising under Paragraph 6.2 Consultant shall not begin work under this Agreement until it procures and maintains for the full period of time allowed by law, surviving the termination of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with its performance under this Agreement. A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office ("ISO) Commercial General Liability Coverage Form No. CG 20 10 10 01 and Commercial General Liability Coverage – Completed Operations Form No. CG 20 37 10 01. 2. ISO Form No. CA 0001 (Ed. 1/87) covering Automobile Liability, Code 1 "any auto" or Code 8, 9 if no owned autos and endorsement CA 0025. 3. Worker's Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. 4. Errors and Omissions liability insurance appropriate to the consultant’s profession. Architects’ and engineers’ coverage is to be endorsed to include contractual liability. B. Minimum Limits of Insurance Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations. If Commercial General Liability Insurance or other form with a general aggregate limit is used, the general aggregate limit shall apply separately to the work performed under this Agreement, or the aggregate limit shall be twice the prescribed per occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. COU No. 2526-219 PAGE 4 OF 7 3. Worker's Compensation and Employers Liability: Worker's compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. 4. Errors and Omissions liability: $1,000,000 per occurrence. C. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages a. The City, it officers, officials, employees and volunteers are to be covered as additional insureds as respects; respect to liability arising out of from activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, hired or borrowed by the Consultant in each case, in the performance of this Agreement, for the full period of time allowed by law, surviving the termination of this Agreement. The coverage shall contain no special limitations on the scope-of- protection afforded to the City, its officers, officials, employees or volunteers. b. The Consultant's insurance coverage shall be primary insurance as respects to the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be in excess of the Consultant's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Worker's Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from Consultant's performance of the work, pursuant to this Agreement. COU No. 2526-219 PAGE 5 OF 7 3. Professional Liability Coverage If written on a claims-made basis, the retroactivity date shall be the effective date of this Agreement. The policy period shall extend one (1) year from the date of final approved invoice. 4. All Coverages Each Insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. E. Acceptability of Insurers Insurance is to be placed with admitted California insurers with an A.M. Best's rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. F. Verification of Coverage Consultant shall furnish the City with Certificates of Insurance and with original Endorsements effecting coverage required by this Agreement. The Certificates and Endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The Certificates and Endorsements are to be on forms provided or approved by the City. Where by statute, the City's Workers' Compensation - related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All Certificates and Endorsements are to be received and approved by the City before Consultant begins the work of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. If Consultant fails to provide the coverages required herein, the City shall have the right, but not the obligation, to purchase any or all of them. In that event, the cost of insurance becomes part of the compensation due the contractor after notice to Consultant that City has paid the premium. G. Subcontractors Consultant shall include all subcontractors or sub-consultants as insured under its policies or shall furnish separate certificates and endorsements for each sub- contractor or sub-consultant. All coverage for sub-contractors or sub-consultants shall be subject to all insurance requirements set forth in this Paragraph 6.1. 6.2 Indemnification. Notwithstanding the foregoing insurance requirements, and in addition thereto, Consultant agrees, for the full period of time allowed by law, surviving the termination of this Agreement, to indemnify and defend the City for any claim, cost or liability that arises out of, or pertains , to or relates to the extent caused by any negligent act or omission or the willful misconduct of Consultant in the performance of services under this contract by Consultant, but this indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising COU No. 2526-219 PAGE 6 OF 7 from the sole negligence, willful misconduct or defects in design by the City, or arising from the active negligence of the City. City agrees not to provide Consultant with information it knows to be inaccurate of untrue or for which it lacks reasonable cause to believe is true and accurate. The parties hereto acknowledge and agree that Consultant does not guarantee any outcomes or result. Consultant shall have no obligation to indemnify City against liability for claims by a third party that the City has failed to comply with its obligations under Article XIII D of the California Constitution (Proposition 218). “Indemnify,” as used herein includes the expenses of defending against a claim and the payment of any settlement or judgment arising out of the claim. Defense costs include all costs associated with defending the claim, including, but not limited to, the fees of attorneys, investigators, consultants, experts and expert witnesses, and litigation expenses. References in this paragraph to City or Consultant, include their officers, employees, agents, and subcontractors. 7.0 CONTRACT PROVISIONS 7.1 Ownership of Work. All documents furnished to Consultant by City and all documents or reports and supportive data prepared by Consultant under this Agreement and intended or contractually agreed by Consultant to be deliverables hereunder (collectively, the “Deliverables”) are owned and become the property of the City upon their creation and shall be given to City immediately upon demand and at the completion of Consultant's services at no additional cost to City. Deliverables are identified in the Scope-of-Work, Attachment "A". All documents Deliverables produced by Consultant shall be furnished to City in digital format and hardcopy. Consultant shall produce the digital format, using software and media approved by City. Notwithstanding the foregoing, nothing herein shall be deemed or construed as a waiver, release, transfer, assignment or divestiture by Consultant of any of its intellectual property , know-how or trade secrets not contained in Deliverables. 7.2 Governing Law. Consultant shall comply with the laws and regulations of the United States, the State of California, and all local governments having jurisdiction over this Agreement. The interpretation and enforcement of this Agreement shall be governed by California law and any action arising under or in connection with this Agreement must be filed in a Court of competent jurisdiction in Mendocino County. 7.3 Entire Agreement. This Agreement plus its Attachment(s) and executed Amendments set forth the entire understanding between the parties. 7.4 Severability. If any term of this Agreement is held invalid by a court of competent jurisdiction, the remainder of this Agreement shall remain in effect. 7.5 Modification. No modification of this Agreement is valid unless made with the agreement of both parties in writing. 7.6 Assignment. Consultant's services are considered unique and personal. Consultant shall not assign, transfer, or sub-contract its interest or obligation under all or any portion of this Agreement without City's prior written consent. COU No. 2526-219 PAGE 7 OF 7 7.7 Waiver. No waiver of a breach of any covenant, term, or condition of this Agreement shall be a waiver of any other or subsequent breach of the same or any other covenant, term or condition or a waiver of the covenant, term or condition itself. 7.8 Termination. This Agreement may only be terminated by either party: 1) for breach of the Agreement; 2) because funds are no longer available to pay Consultant for services provided under this Agreement; or 3) City has abandoned and does not wish to complete the project for which Consultant was retained. A party shall notify the other party of any alleged breach of the Agreement and of the action required to cure the breach. If the breaching party fails to cure the breach within the time specified in the notice, the contract shall be terminated as of that time. If terminated for lack of funds or abandonment of the project, the contract shall terminate on the date notice of termination is given to Consultant. City shall pay the Consultant only for services performed and expenses incurred as of the effective termination date. In such event, as a condition to payment, Consultant shall provide to City all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports Deliverables prepared by the Consultant under this Agreement. Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder, subject to off-set for any direct or consequential damages City may incur as a result of Consultant's breach of contract. 7.9 Execution of Agreement. This Agreement may be executed in duplicate originals, each bearing the original signature of the parties. Alternatively, this Agreement may be executed and delivered by facsimile or other electronic transmission, and in more than one counterpart, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. When executed using either alternative, the executed agreement shall be deemed an original admissible as evidence in any administrative or judicial proceeding to prove the terms and content of this Agreement. 8.0 NOTICES Any notice given under this Agreement shall be in writing and deemed given when personally delivered or deposited in the mail (certified or registered) addressed to the parties as follows: CITY OF UKIAH RAFTELIS FINANCIAL CONSULTANTS, INC. DEPT. OF FINANCE 1 NORTH CALLE CESAR CHAVEZ 300 SEMINARY AVENUE SUITE 102 UKIAH, CALIFORNIA 95482-5400 SANTA BARBARA, CA 93103 9.0 SIGNATURES IN WITNESS WHEREOF, the parties have executed this Agreement the Effective Date: CONSULTANT BY: __________________________ ____________________ Date PRINT NAME: _________________ __________________ IRS IDN Number COU No. 2526-219 PAGE 8 OF 7 CITY OF UKIAH BY: ____________________ Date CITY MANAGER ATTEST ____________________ CITY CLERK Date 05/29/2026 06/02/2026 Page 1 of 2 INSURANCE REQUIREMENTS FOR CONSULTANTS Consultant(s) shall procure and maintain for the duration of the contract insurance against insurable claims for injuries to persons or damages to property caused or alleged to have been caused by the performance of the work hereunder by the Consultant(s), his agents, representatives, or employees. I. Minimum Scope of Insurance Coverage shall be at least as broad as: A. Insurance Services Office Commercial General Liability coverage (Form No. CG 20 10 10 01 and Commercial General Liability – Completed Operations Form No. CG 20 37 10 01). B. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). C. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. D. Errors and Omissions liability insurance appropriate to the consultant’s profession. Architects’ and engineers’ coverage is to be endorsed to include contractual liability. II. Minimum Limits of Insurance Consultant shall maintain limits no less than: A. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations, as applicable. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Insurance must be written on an occurrence basis. B. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Insurance must be written on an occurrence basis. C. Workman’s Compensation Employer’s Liability: $1,000,000 per accident for bodily injury or disease. D. Errors and Omissions liability: $1,000,000 per occurrence. If written on a claims-made basis, insurance coverage must cover claims filed within 3 years after contract work completed. III. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the insurer to reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officers, officials, employees and volunteers; or the Consultant to provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses; or to approve the deductible without a guarantee. IV. REQUIRED Insurance Provisions Proof of general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: A. The City, its officers, officials, employees, and volunteers are to be covered as ADDITIONAL INSURED with respect to liability caused or alleged to have been caused by automobiles owned, leased, hired or borrowed by or on behalf of the Consultant or otherwise asserted against the City as a result of an accident involving such automobiles; and with respect to liability caused or alleged to have been caused by work or operations performed by or on behalf of the Consultant including materials, parts or equipment, furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance, or as a separate owner’s policy. B. The workers’ compensation policy is to be endorsed with a waiver of subrogation. The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses paid under the terms of this policy which Page 2 of 2 arises from the work performed by the named insured for the City. NOTE: You cannot be added as an additional insured on a workers’ compensation policy. C. For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance with respect to the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Consultant’s insurance and shall not contribute with it. D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City. V. RATING - Acceptability of Insurers Insurance is to be placed with admitted California insurers with a current A.M. Best’s rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. VI. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City. If endorsements are on forms other than the City’s forms, those endorsements must provide coverage that is equivalent to or better than the forms requested by the City. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. If you have questions regarding our insurance requirements contact: Risk Manager (707) 463-6287 or FAX (707) 463-6204 Revised: 11/20/08 RAFTELIS 3 B.PROJECT UNDERSTANDING AND PROPOSED APPROACH Project Understanding The City of Ukiah, nestled in the heart of Mendocino County's inland valley, serves a community of approximately 16,300 residents and functions as the economic and civic hub of the region. The City has long demonstrated a commitment to environmental stewardship, from its pesticide-free parks and renewable energy portfolio to its active investment in sustainable land use planning, and its approach to solid waste management reflects that same forward-thinking orientation. The City is seeking an independent five-year review of its solid waste system to evaluate contractor financial performance, assess the effectiveness of rate adjustment mechanisms, and confirm that residents and businesses are receiving quality services at fair and reasonable rates. The City maintains a franchise agreement with Ukiah Waste Solutions (UWS), a subsidiary of C&S Waste Solutions, for the collection of solid waste, organic waste, and recyclables within the incorporated city limits. The current agreement, which runs from October 2017 through December 2031, governs the terms of service delivery and establishes the rate adjustment mechanisms that determine how collection rates change over time. The agreement includes provisions for periodic review—precisely the type of independent evaluation contemplated by this engagement. Since the agreement was executed, the solid waste landscape in California has changed markedly, driven by the implementation of SB 1383, AB 1826, and AB 341, each of which has introduced new collection, diversion, and reporting obligations that directly affect the cost of providing service and the way rates are structured. Raftelis understands that this review is not simply a backward-looking financial audit. It is an opportunity for the City to take stock of how the system has performed over the review period, to evaluate whether rate adjustments have kept pace with, or exceeded, actual cost changes, and to identify any structural issues in the rate methodology or contractual provisions that should be addressed before the agreement reaches its remaining term. The review must account for the real-world cost pressures that have reshaped solid waste operations statewide, including volatile commodity markets, rising disposal and transportation costs, and the significant investment required to comply with California's evolving organics and recycling mandates. Raftelis brings deep experience conducting independent solid waste system reviews, rate analyses, and franchise evaluations for California municipalities. Our team understands the regulatory environment, the financial dynamics of franchised collection systems, and the practical challenges cities face in balancing fiscal responsibility with service quality and environmental compliance. We are prepared to deliver a thorough, transparent, and actionable review that equips the City of Ukiah with the information it needs to make sound decisions about its solid waste system for the years ahead. Project Approach Raftelis will conduct an independent five-year review of the City of Ukiah's solid waste system in accordance with the scope of services outlined in the City's request for proposals. Our approach is organized into seven sequential tasks, beginning with project initiation and work planning and concluding with a final report and presentation of findings. Each task builds on the work of the prior phase, ensuring a thorough and well-documented analysis of the contractual framework, contractor financial performance, rate adjustment mechanisms, and operational considerations that collectively shape the City's solid waste system. Attachment A RAFTELIS 4 Raftelis will maintain consistent communication with City staff throughout the engagement through biweekly check-in meetings. These meetings provide a regular forum for progress updates, discussion of interim findings, issue resolution, and coordination between the project team and City staff. The biweekly cadence will begin during Task 1 and continue through the completion of Task 7. Raftelis anticipates the project will span approximately four to six months from notice to proceed, resulting in approximately eight to 12 biweekly check-in meetings in addition to the task-specific meetings identified within each task below. Task 1: Project Initiation and Work Planning Objective: Establish a clear project framework, align expectations with City staff, and define the analytical approach, communication protocols, and milestone schedule that will guide the engagement from start to finish. Identify all data and documentation needed to perform the review and issue the request early to facilitate timely data collection. Action Items: • Conduct a kickoff meeting with City staff to confirm the scope of work, project objectives, key contacts, and communication protocols • Discuss the City's priorities, areas of particular concern, and any known issues related to the solid waste system or contractor performance • Establish a biweekly check-in meeting cadence with City staff for the duration of the project to provide progress updates, discuss interim findings, and address questions as they arise • Develop and submit a written project work plan outlining the proposed analytical approach, key milestones, deliverable schedule, and anticipated timeline for completion • Prepare and submit a comprehensive data request list identifying contractor financial records, operational reports, rate adjustment filings, and other documentation required to perform the review • Coordinate with City staff to facilitate timely receipt of requested materials MEETINGS: • Project kickoff meeting with City staff (1) • Biweekly check-in No. 1 DELIVERABLES: • Project work plan (1 draft) • Comprehensive data request list (1 draft) Task 2: Document and Agreement Review Objective: Build a comprehensive understanding of the contractual framework, historical context, and financial reporting requirements that govern the City's solid waste system to inform the financial, rate adjustment, and operational analyses that follow. Action Items: • Review applicable solid waste franchise and/or transfer agreements to understand the contractual provisions governing rates, compensation structures, performance obligations, and financial reporting requirements • Review prior five-year review reports and any other relevant background documentation provided by the City to understand historical findings, prior recommendations, and how the system has evolved • Identify and catalog the specific contractual provisions related to rate adjustment mechanisms, cost recovery, and periodic review obligations RAFTELIS 5 • Follow up on outstanding data request items and coordinate with City staff to obtain any supplemental documentation as needed MEETINGS: • Biweekly check-in meetings (ongoing) DELIVERABLES: • Analysis is documented in the draft and final reports under Tasks 6 and 7) Task 3: Financial Analysis Objective: Conduct a detailed review of the contractor's financial performance over the review period by examining financial statements, cost structures, revenue streams, and capital expenditures to determine whether the costs of providing solid waste services are reasonable and consistent with the governing agreements. Action Items: • Review contractor financial statements, statements of operations, and related supporting documentation for services provided under the agreements • Evaluate reported revenues, operating costs, capital expenditures, and cost allocation methodologies associated with the solid waste system • Analyze commodity revenues, disposal costs, and other key financial drivers affecting overall system costs and financial performance • Assess the reasonableness of reported costs by examining trends, benchmarking against industry norms where applicable, and identifying any anomalies or areas warranting further inquiry • Coordinate with City staff and, as appropriate, the contractor to clarify financial data or obtain supplemental documentation MEETINGS: • Biweekly check-in meetings (ongoing) DELIVERABLES: • Analysis is documented in the draft and final reports under Tasks 6 and 7 Task 4: Rate Adjustment Evaluation Objective: Evaluate the effectiveness and accuracy of the rate adjustment mechanisms applied during the review period to determine whether adjustments have appropriately reflected actual cost drivers and whether the contractor has experienced over-recovery or under-recovery of costs. Action Items: • Review historical rate adjustments implemented under the agreements, including the indices, formulas, or methodologies used to calculate each adjustment • Evaluate whether rate adjustments appropriately reflected underlying cost drivers such as labor, fuel, disposal fees, and regulatory compliance costs • Analyze the cumulative effect of rate adjustments over the review period to determine whether the contractor has experienced over-recovery or under-recovery of costs relative to reported expenses • Assess the overall reasonableness of contractor compensation under the governing agreements, considering both the rate adjustment mechanism and actual financial performance RAFTELIS 6 • Identify any structural issues with the rate adjustment methodology that may warrant modification or refinement MEETINGS: • Biweekly check-in meetings (ongoing) DELIVERABLES: • None (analysis is documented in the draft and final reports under Tasks 6 and 7) Task 5: Operational Review Objective: Evaluate operational metrics, performance indicators, and the assumptions underlying financial reporting to identify operational factors that may materially influence system costs, revenues, or long-term financial sustainability. Action Items: • Review operational metrics and performance indicators relevant to the solid waste system, including tonnage data, diversion rates, route efficiency, and service level indicators • Evaluate the reasonableness of assumptions used in the contractor's financial reporting, including cost escalation factors, depreciation schedules, and allocation methods • Identify operational trends or changes, such as shifts in waste composition, service territory growth, or regulatory requirements, that may influence system costs, revenues, or long-term financial performance • Assess whether operational practices align with the contractual expectations and whether any operational factors should be accounted for in future rate adjustments MEETINGS: • Biweekly check-in meetings (ongoing) DELIVERABLES: • None (analysis is documented in the draft and final reports under Tasks 6 and 7) Task 6: Draft Report Objective: Synthesize the findings from the document and agreement review, financial analysis, rate adjustment evaluation, and operational review into a well-organized draft report that clearly presents the methodology, assumptions, analytical approach, and preliminary conclusions for City staff review. Action Items: • Prepare a draft five-year review report with methodology, analysis, data reviewed, and preliminary findings • Document the results of the contract and agreement review, including key contractual provisions governing rates, compensation, performance obligations, and financial reporting requirements • Clearly describe the assumptions used, analytical methods applied, and conclusions reached so that City staff may evaluate the basis for each finding • Organize the report to address the scope of services, contract and agreement review, financial performance, rate adjustment effectiveness, and operational considerations, in a logical and accessible format • Submit the draft report to City staff for review and comment; Conduct a draft report review meeting with City staff to discuss findings and document requested revisions RAFTELIS 7 MEETINGS: • Draft report review meeting with City staff (1) • Biweekly check-in meetings (ongoing) DELIVERABLES: • Draft five-year review report (1 draft) Task 7: Final Report and Presentation Objective: Incorporate City staff feedback into a polished final report and present the findings, conclusions, and recommendations, including those related to the contract and agreement review, financial analysis, rate adjustment evaluation, and operational review, to City staff and, if requested, the City Council or other governing body. Action Items: • Review and incorporate City staff comments and revisions into the final five-year review report • Confirm that the final report comprehensively addresses the contract and agreement review, financial analysis, rate adjustment evaluation, and operational review • Clearly present conclusions and actionable recommendations in the final report, including any suggested modifications to the rate adjustment methodology or contractual provisions • Prepare presentation materials summarizing the findings, methodology, and recommendations of the review • Present findings to City staff (or other governing body) in a review meeting MEETINGS: • Presentation to City staff (1) and presentation to City Council or other governing body, if requested (1) • Final biweekly check-in meeting DELIVERABLES: • Final five-year review report (1 final); Presentation materials (1 draft) RAFTELIS 8 Rate Model Dashboards City of Watsonville, CA Municipality of Anchorage, AK Raftelis will develop a customized financial model that incorporates a dashboard to allow the City to easily run scenarios and see the impacts in real time. Shown here is a sample dashboard that we developed for other projects. WATSONVILLE SOLID WASTE FINANCIAL PLAN Dynamic years FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 SOLID WASTE DASHBOARD Selection Options Adjustment Month Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Years Shown 7 Revenue Adjustment 0.0%0.0%7.5%7.5%7.5%5.0%5.0% Account Growth Slight Increase Temporary Service Growth No change Proposed Debt $0 $2,043,711 $0 $832,320 $4,138,711 $0 $0 $0 $0 $0 $0 Grant Funding for CIP $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 CIP Reduction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total CIP $1,526,982 $3,705,991 $214,200 $3,594,582 $4,218,302 $81,182 $1,772,050 $985,392 $1,631,461 $1,025,202 $1,275,680 Note that there is no debt coverage requirement (0.70) 0.62 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 REVENUE ADJUSTMENTS & DEBT COVERAGE Revenue Adjustment (Left)Projected Debt Coverage (Right) Required Debt Coverage (Right)Alert Coverage (Right) $1.5 M $3.7 M $0.2 M $3.6 M $4.2 M $0.1 M $1.8 M $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Millions CAPITAL IMPROVEMENT PLAN (CIP) Debt Funded Cash Funded $8.8 M $6.5 M $6.2 M $3.7 M $4.4 M $5.5 M $5.2 M $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Millions TOTAL ENDING FUND BALANCE CIP Expenditures Ending Balance Operating Reserve Target Total Reserve Target Alert Balance -$5.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Millions FINANCIAL PLAN O&M: Personnel O&M Operations Debt Service Cash Funded CIP Revenue to/from Reserves Proposed Revenue Current Revenues RAFTELIS 39 E.FEE PROPOSAL Fee Proposal As requested in the RFP, we have provided the fee proposal separately. F.PROPOSED PROJECT SCHEDULE Proposed Project Schedule The following schedule assumes a project duration of approximately five months from notice to proceed (NTP). Task durations reflect the sequential and, where appropriate, overlapping nature of the work. Actual dates will be established during Task 1 based on the mutually agreed-upon project work plan. Biweekly check-in meetings will occur throughout the engagement from Week 2 through Week 20. The schedule assumes timely receipt of requested data and documentation from the City and the contractor. Task Description Duration Deliverables 1 Project Initiation and Work Planning Weeks 1–2 Project work plan (1 draft); Comprehensive data request list (1 draft) 2 Document and Agreement Review Weeks 3–6 None (findings documented in Tasks 6 and 7) 3 Financial Analysis Weeks 5–10 None (findings documented in Tasks 6 and 7) 4 Rate Adjustment Evaluation Weeks 7–12 None (findings documented in Tasks 6 and 7) 5 Operational Review Weeks 9–12 None (findings documented in Tasks 6 and 7) 6 Draft Report Weeks 13–16 Draft five-year review report (1 draft) 7 Final Report and Presentation Weeks 17–20 Final five-year review report (1 final); Presentation materials (1 draft) RAFTELIS 1 E. FEE PROPOSAL Fee Proposal The table on the following provides a breakdown of our proposed fee for this project. This table includes the estimated level of effort required for completing each task inclusive of all costs. Project team hours and expenses will be billed on the same invoice. Expenses related to travel will be billed at cost. Additional services outside the agreed upon scope of work will be billed on a time and materials basis. Raftelis’ billing rates can be found below. These rates will be in effect for calendar year 2026 and will then increase annually by 3% unless specified otherwise by contract. POSITION HOURLY BILLING RATE** Chair/Chair Emeritus $500 Chief Executive Officer/President $475 Executive Vice President/Senior Principal $425 Senior Vice President $400 Vice President $375 Senior Manager $340 Principal Consultant $310 Manager $295 Senior Consultant $260 Consultant $230 Creative Director $230 Associate Consultant $195 Graphic Designer $170 Analyst $150 Administration $100 Technology Charge* $10 *Technology/Communications Charge: This is an hourly fee charged monthly for each hour worked on the project to recover telephone, facsimile, computer, postage/overnight delivery, conference calls, electronic/ computer webinars, photocopies, etc. RAFTELIS 2 City of Ukiah — Solid Waste System Five-Year Review Not-To-Exceed Fee Proposal Porter McCarthy Boveri Zoller Manwelyan/ Wittern Mitchell/ Neely Total Hours Total Cost Project Director Project Manager Finance SME Communications Lead Funding SME & Comms Analysts Vice President Senior Manager Senior Vice President Senior Manager Manager Senior Consultant Hourly Rate $375 $360 $400 $360 $295 $260 Task 1: Project Initiation and Work Planning 2 3 1 0 0 5 11 $3,530 Task 2: Document and Agreement Review 2 5 2 0 2 6 17 $5,500 Task 3: Financial Analysis 2 8 3 0 2 8 23 $7,500 Task 4: Rate Adjustment Evaluation 2 6 3 0 4 8 23 $7,370 Task 5: Operational Review 2 2 0 6 2 4 16 $5,260 Task 6: Draft Report 2 6 1 2 4 5 20 $6,510 Task 7: Final Report and Presentation 2 4 0 0 2 4 12 $3,820 Total Hours 14 34 10 8 16 40 122 Total Cost by Person $5,250 $12,240 $4,000 $2,880 $4,720 $10,400 $39,490