HomeMy WebLinkAboutFY26-27 Public Finance: Financial Advising Services - FG SolutionsDEPARTMENT OF FINANCE
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June 30, 2026
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Ms. Diane Nakagawa
Director of Finance, County of Hawai'i
25 Aupuni Street,Suite 2103
Hilo, Hawaii 96720
Email: crystallene.pacheco@hawaiicounty.gov
Phone: 808-961-8234
Subject: Statement of Qualification and Expression of Interest for FY 2026-2027:
Dear Ms. Nakagawa:
FG Solutions is pleased to submit the attached Statement of Qualifications to you and the Department.
Enclosed is a Statement of Qualifications and Expression of Interest for the following Categories, for
Fiscal Year 2026-2027:
FN.1)Accounting(Accounting,Analysis, and Administration of Special Financing Districts)
FN.5)Auditing
FN.9) Public Finance(Financial Advising)
FG Solutions is a California-based financial and management consulting firm. Our services include
utility rate studies, financial planning, connection and impact fee studies, business case evaluations,
and financial feasibility evaluations. In addition to these services, FG Solutions also offers Extension of
Staff services.Extension of Staff is a way for our clients to get some tasks or small projects done without
having to impact staff time. Below please find examples of our Extension of Staff Services.
Annual budget assistance, including revenue projections and water treatment expense
projections
Financial Consulting for an Insurance Claim
Revenue projections to support a bond rating presentation
Review of AMI Business Case
Pretreatment Fee benchmarking and evaluation
Business case, evaluating a potential service area extension
Stranded cost calculation and documentation of abandoned facilities
Evaluation of existing governance agreements and the financial analysis of cost allocation
procedures and overhead charges.
FG SOLUTIONS, LLC I 649 S Burnside Ave#106,Los Angeles CA 90036 I www.fg-solutions.com
At the intersection of your financial,engineering,policy and management challenges
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We would like to thank you for this opportunity to submit this proposal and look forward to the
opportunity to provide consulting services. Please feel free to contact us if you have any questions or
need further information.
Best Regards,
Debi Fortin
CEO, FG Solutions, LLC
Email: debi@fg-solutions.com
Direct: 206.605.4167
FG SOLUTIONS,LLC I 649 S Burnside Ave#106, Los Angeles CA 90036 I www.fg-solutions.com
At the intersection of your financial,engineering,policy and management challenges
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a ,.,, \ , STATEMENT OF QUALIFICATIONS AND
EXPRESSION OF INTEREST, FY 2026-2027
CATEGORY FN.1
ACCOUNTING (ACCOUNTING, Analysis, and
Administration of Special Financing Districts)
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PUBLIC FINANCE (FINANCIAL ADVISING)
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Prepared by:
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debi@fg-solutions.com
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Section 1 : Name of the Firm, Contact
Information, Principal Place of Business, and
Location of All Offices
Name of Firm:FG Solutions, LLC
Contact Information: Ms. Debi Fortin
Chief Executive Officer
649 S. Burnside Avenue,#106
Los Angeles, CA 90036
debi(c fq-solutions.com
Mr.Art Griffith
Principal/Project Manager
649 S. Burnside Avenue,#106
Los Angeles, CA 90036
art(a.fd-solutions.com
Principal Place of Business:Los Angeles,CA
Location of All Offices: Los Angeles, CA
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Section 2: Age of Firm and Average Number of
Employees over the Past Five Yeas .)
FG Solutions,LLC was incorporated in 2014, the firm is twelve years old.Since its formation, FG Solutions,
LLC has been a partnership with two principals, Ms. Debi Fortin and Mr. Art Griffith, and no additional
employees.
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Section 3: Education, Training, and
Qualifications of the Firm' s Key Employees
Mr.Art Griffith
Mr. Griffith is a registered professional engineer with more than 31 years of experience providing utility
financing services to water, wastewater, stormwater, solid waste, and electric utilities. Specific areas of
expertise include utility ratemaking, Impact Fee determination, financial planning, interlocal agreement
preparation, fiscal policy and level-of-service definitions, and assisting municipal utilities develop capital
funding alternatives.
Mr. Griffith integrates his engineering and financial consulting experience to enhance the quality of the
financial analysis and draws on both disciplines in his ability to communicate the results. He works closely
with utility staff and elected officials to communicate utility finance issues with the public via advisory
committees and public hearing presentations.
Education:
BS, Chemical Engineering, University of Washington; 1988
MS Civil&Environmental Engineering, University of Wisconsin; 1992
Ms. Debi Fortin
Ms. Fortin is FG Solutions' Chief Executive Officer, in addition to her role as Project Manager and Senior
Analyst. Ms. Fortin's greatest value to her clients is her ability to quickly assess a challenge and develop a
strategy to resolution. Her attention to detail, technical acumen, and love for networking is a perfect
combination for the business.
In addition to her duties as CEO, Ms. Fortin works alongside Mr. Griffith as a Project Manager and a Senior
Consultant for the company's financial and management consulting assignments. She has prepared
financial projections, revenue requirement analyses, cost of service analyses, water demand projections,
and benchmarking analyses of financial parameters and utility financial policies.
Ms. Fortin has a Masters Degree in Business Administration, with over twenty-three years of engineering
and financial and management consulting experience.
Education:
BS, Electrical Engineering,Seattle University; 1989
Master of Business Administration,Seattle University;2001
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Section 4: List of Recent Projects and the
Names of Up to Five Clients who Ma\
Contacted
List of Recent Projects
Wastewater Rate Study, current study in progress 2026
County of Hawaii, Department of Environmental Management, Hilo, Hawai`i
FG Solutions is currently working on a Wastewater Rate Study for the County. The rate study includes a
ten-year financial plan and a five-year rate proposal. Draft sewer rates for the next five years have been developed
and are currently being reviewed by the County. Proposed rate increases would allow the utility to pay for O&M
and repair/replacement expenses, and would require the General Fund to pay for the majority of capital
improvement costs.
This project also includes development of the Long-Range Financial Plan, which will identify how all
wastewater system capital projects will be funded. This Long-Range Financial Plan is currently an ongoing
effort.
Wastewater Rate Study, completed in 2018
County of Hawai`i, Department of Environmental Management, Hilo, Hawai`i
FG Solutions completed the County's 2018 Wastewater Rate Study,which resulted in an adopted five-year
schedule of rate increases. The first rate increase went into effect in 2019,and the fifth of five rate increases
became effective in April 2023. The County of Hawaii had not increased wastewater rates since 2006, and
wastewater revenues were not high enough to support O&M, adequate repair/replacement, and needed
capital improvements. Rate increases allowed the utility to begin addressing critical repair/replacement
needs. The cost-of-service analysis completed for this project allowed for defensible residential and
commercial rates to be considered and adopted.
Wastewater Rate Study and Impact Fee Update, 2022
County of Kaua`i, Department of Public Works Wastewater Management Division, Lihu`e, Hawai`i
This rate study consisted of a revenue requirement analysis, cost of service analysis, and rate design. The
outcome of the project was a 70 percent rate increase phased in over a five-year period. The rate increase
will provide the revenue to fund a capital improvement plan that addresses regulatory needs, collection
system expansion, and urgent replacement needs. The funding allows the County to replace antiquated
equipment and provide more reliable service.
The financial plan covered a five-year period and required significant sensitivity analyses for capital funding
and schedule alternatives. This financial plan assessed the trade-off between rate increases and on-going
General Fund support. The County's policy decision was that wastewater rates would pay for O&M costs
and State Revolving Fund debt service, and the General Fund would continue to issue General Obligation
debt for a portion of the wastewater Capital Improvement Plan. The County has separate Impact Fees for
wastewater collection and wastewater treatment, and these Impact Fees were updated. A key challenge of
the Impact Fee updating was estimating past General Fund support for wastewater debt service.The Kaua
County Council adopted updated rates and Impact Fees in September 2022.
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Multiple Consulting Assignments: City of Garden Grove, California
Chubb Insurance Claim, 2026 (Ongoing)
The City filed a claim with it's insurance company,related to expenses incurred due to PFAS contamination
of two of its eleven wells. FG Solutions calculated the value of additional expenses incurred by the city for
these wells,which included the cost of importing additional water from Metropolitan Water District of Orange
County (MWDOC). FG Solutions developed the methodology for documenting the claim, working with the
insurance company's adjustor and forensic accountant.
Extension of Staff Consulting Services, 2018- 2026
Since 2018, FG Solutions has been providing consulting services as needed.These services have included:
Annual updates to the City's pass-through charge, where increases in purchased regional water
costs and regional recharge assessments can be passed through to customers without further
Proposition 218 notifications.
Updating the Revenue Requirement analysis to allow the City to confidently budget for capital
improvements.
Providing information to support bond issuance and bond refinancing.
Providing revenue and expense projections used by the City to prepare its budget.
Water Rate Study, 2023
FG Solutions updated the City's Water Rate Study in 2023.The successful outcome of the Rate Study was
a series of five annual rate increases beginning in 2024 and ending in 2028.The rate increases will provide
funding to address PFAS contamination in the City's groundwater wells and address decreasing use of
water as water conservation efforts continue in California. FG Solutions and the City approached the Rate
Study as an opportunity to inform and talk to City residents about PFAS contamination and how the City is
addressing PFAS contamination to continue to provide a safe and reliable water supply.
Water Rate Study, 2018
FG Solutions completed a Water Rate Study for the City of Garden Grove in 2018. Garden Grove has a
population of 170,883. Per the City's 2015 Urban Water Management Plan, 30% of the City's households
are classified as either"extremely low income", or"very low income".
Garden Grove's goals were to balance levels of service, maintain revenue stability, and to address
affordability concerns. The City also wanted help in prioritizing their capital improvement plan. The Rate
Study included:
Updating the water utility Capital Improvement Plan.
Increasing fixed charges to enhance the fiscal health of the utility. Revenues from fixed charges
pay for fixed costs.
Implementing a new low-income/senior discount to mitigate the financial impacts of increased fixed
charges on a vulnerable population.
Creating a defensible tiered water rate and fire service rate structure.
Conducting four one-hour Study Sessions with the City Council to discuss the Capital Improvement
Plan and its benefits, the financial impacts of the drought, proposed rate increases, proposed rate
structure alternatives, and public involvement activities. FG Solutions prepared the presentations,
and Mr. Griffith delivered the presentations.
Conducting one public open house/workshop.
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Multiple Consulting Assignments: South Coast Water District, Laguna Beach, California
JRWSS Overhead Cost Analysis, Ongoing
The Joint Regional Water Supply System (JRWSS)is a set of water conveyance and storage infrastructure
that brings regional water supplies to nine Member Agencies in South Orange County. A series of eleven
contracts among the Member Agencies govern the JRWSS and establish South Coast Water District
District) as the system operator. The District retained FG Solutions to address two contractual aspects to
improve the financial equity and transparency of JRWSS operation.
FG Solutions is developing a Systemwide Cost Allocation methodology, to more equitably distribute costs
that are related to the overall JRWSS system, including but not limited to administration, accounting,
SCADA, and Information Technology. Allocation of these costs is not adequately addressed in existing
contracts.The proposed methodology has been presented to the Member Agencies,and FG Solutions has
been receiving comments on an ongoing basis. FG Solutions'cost allocation methodology was used in the
development of the JRWSS FY 26/27 operating budget.
FG Solutions has also developed a methodology to recover all administrative costs. Currently, the District
provides services to JRWSS and is not fully recovering the costs of providing these services. FG Solutions'
methodology will result in more equitable cost recovery for the District and the other JRWSS Member
Agencies.
Connection Fee Update, 2017
FG Solutions updated the District's water and wastewater Connection Fees in 2017. This Connection Fee
update provided equitable recovery of the cost of infrastructure required to serve new development. The
Connection Fees considered the cost of existing infrastructure,the condition of existing infrastructure, and
how the infrastructure was funded. Developer-funded infrastructure was excluded. The District's capital
improvement plan was included in the Connection Fee calculations to the extent the improvements are
required to serve future development.
In 2020, FG Solutions completed two follow-up assignments:
A procedure to apply inflationary adjustments to Connection Fees
Analysis and creation of an additional customer type for customers whose water meters are upsized
to provide fire sprinkler systems. These customers were defined as "13D Customers" based on
requirements of the National Fire Protection Association. This analysis recognized that water
supply for fire sprinklers comes from storage and not from sources of supply. Therefore,the revised
water Connection Fees for 13D customers did not include a source of supply component.
Brightwater Oversight Monitoring Consultant 2014
King County Auditor's Office, Seattle, WA
Mr. Griffith was retained by the King County Auditor's Office to provide oversight consulting services for a
1.8 billion wastewater system that was in construction between 2007 and 2014. He provided input to the
King County Council regarding the project's cost, schedule, and risk. Recommendations were related to
budgeting procedures, adequacy of contingencies, risk management, staffing, and communication of
project performance to elected officials. Mr. Griffith was also responsible for the development of, on an
annual basis, an independent estimate of the project cost, considering construction progress to-date and
remaining potential cost risks. This input was provided on an ongoing basis through the multi-year
construction phase.
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Multiple Consulting Assignments: Western Municipal Water District
Development Fee Update, Ongoing
FG Solutions is currently updating the District's Development Fees and creating new fees and deposits for
work currently performed by the District. The Study is updating 26 fees and creating nine new deposit
structures. These fees and deposits are for various projects such as plan check services, construction
inspection services, hot taps, fire flow modeling, and other development-related services. These fees are
meant to compensate the District for work they are currently performing for customers. The work includes a
benchmarking task with four other local water and wastewater utilities.
Water and Wastewater Cost of Service Studies and Financial Plans
In 2025, FG Solutions completed a Water and Wastewater Cost of Service Study that included a four-year
financial plan. The Study resulted in an adopted four-year schedule of rate increases for the Water and
Wastewater utilities, in addition to rate increases for their recycled water utility. The Study separated the
District's service areas so that each service area would pay only for its unique cost of service. Rates were
set to fund the District's asset replacement goals, fund its capital improvement plan, and achieve the
District's reserve and coverage targets, while maintaining an affordable rate structure for their residential
customers.
Riverside Division Capacity Charge Study, Ongoing
FG Solutions is updating water and wastewater Capacity Charges for Western Water's Riverside Division.
The Riverside Division serves approximately 25,000 retail customers and is undergoing significant service
area development. The key challenge of this Capacity Charge update is identifying how Capacity Charge
revenues can adequately fund capital improvements needed to serve development. The project is currently
on hold as Western Water updates its Master Plan to identify system extensions that would be developer
funded.
Murrieta Division Capacity Charge Study, 2023
FG Solutions updated water and wastewater Capacity Charges for the Western Municipal Water District
Western Water) Murrieta Division. The Murrieta Division is a stand-alone retail water and wastewater
service area that is separate from the remainder of Western Water's service area. The area has
considerable development potential, and the Connection Fee update is evaluating the cost of existing
infrastructure and future infrastructure that is required to serve future development. The wastewater
Connection Fee update recognizes that sewer treatment service is provided by two different utilities.
Multiple Assignments: City of Rialto, California
Extension of Staff Services, 2014 - 2025
FG Solutions has completed numerous consulting assignments serving as an extension of City staff.These
included:
Economic evaluation of a potential service area change. FG Solutions determined it was more
economical for the City to pay for lift station improvements that would enable the City to serve
additional customers, than to cede the service area to another utility. Over time, the revenue from
the new customers would exceed the City's investment in the infrastructure.
Labor Reset Adjustment. The City contracts for O&M of its water and wastewater systems. Every
four years,the amount the City is charged for labor is re-evaluated. In 2020, FG Solutions reviewed
the vendor's proposal, developed a procedure for revising labor costs consistent with contractual
requirements, and achieved buy-in from the vendor, City management, and elected officials. FG
Solutions'work resulted in cost savings to the City of over$200,000 per year.
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