Laserfiche WebLink
HILDEBRAND <br />' CONSUl71 NG <br />April 14, 2022 <br />City of Santa Ana <br />Atten: Rudy Rosas, Principal Civil Engineer <br />Public Works Agency, City Corporation Yard <br />215 South Center Avenue, Building A <br />Santa Ana CA 02703 <br />Subject: Proposal for Corporate Yard, Central Stores and Fuel Rate Study <br />Dear Mr. Rosas, <br />In response to your request on behalf of the City of Santa Ana, Hildebrand Consulting, LLC. is pleased to submit this <br />proposal to conduct a study to calculate fair and reasonable internal rates for Corporate Yard, Central Stores and <br />Fuel services. I bring over 21 years of experience as a consultant to municipal governments. Hildebrand Consulting <br />provides a broad range of financial, utility rate, and management consulting services. I have performed hundreds of <br />studies covering a diverse range of cost allocation issues, user fee development, and financial planning to more than <br />70 clients. As an independent consultant, Hildebrand Consulting offers a distinctive value proposition by being <br />directly engaged in all facets of work while charging affordable rates. I have personally supported the City of Santa <br />Ana in several studies related to utility rates since 2018. <br />Project Understanding <br />The City's Public Works Agency provides both external services (to the benefit of the public) and internal services (to <br />the benefit of City departments). The internal services that are relevant to this proposal include (a) the Corporate <br />Yard, which provides storage and office space to numerous City departments, (b) Central Stores, which stocks <br />supplies for the convenience of City departments, and (c) Fueling Station, which dispenses gasoline, diesel, <br />compressed natural gas (CNG), and propane to City departments. We understand that the current internal rates for <br />the above services are generally equitable but are due for an update and better documentation. <br />The objective of this study is to develop internal rates that reflect the full cost of providing service in order to <br />equitably allocate costs to the benefiting City departments. The rationale for the rates will be defensible, <br />transparent, and documented with an administrative record. <br />Proposed Approach <br />The follow describes the general approach for developing rates that reflect the full cost of providing Corporate Yard <br />and Central Stores services. <br />Page 1 <br />