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Public Works Agency <br />www.santa-ana.org/pw <br />Item # 19 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />May 20, 2025 <br />TOPIC: Agreement for Water and Sewer Long-term Financial Planning and Cost of <br />Service Study <br />AGENDA TITLE <br />Agreement with Robert D. Niehaus, Inc. for Long-Term Financial Planning and Water <br />and Sewer Cost of Service Study (Specification No. 25-013) (Non-General Fund) <br />RECOMMENDED ACTION <br />Approve an agreement with Robert D. Niehaus, Inc. to conduct long-term financial <br />planning and a water and sewer cost of service study for an amount not to exceed <br />$130,850, for a term beginning May 20, 2025 and expiring May 19, 2028, with a <br />provision for two one-year extensions (Agreement No. A-2025-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The Public Works Agency’s (PWA) Water Resources Division oversees the daily <br />operations and maintenance of the City’s water and sanitary sewer systems. The water <br />system is comprised of approximately 480 miles of water main, 21 groundwater wells, <br />seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, four <br />pressure regulating stations, and seven connection points to the Metropolitan Water <br />District. The system has an average daily demand of 30 million gallons from its roughly <br />45,500 metered service connections. <br />On November 19, 2019, at the conclusion of a comprehensive rate study that developed <br />multi-year financial forecasting models for the Water and Sewer Enterprises to <br />determine the level of annual rate revenue required to satisfy projected annual <br />operating costs and identified capital needs, the City Council adopted a five-year rate <br />plan for the City’s water and sewer services. The final rate adjustment of the current <br />five-year plan took effect on July 1, 2023. To comply with California Proposition 218 <br />requirements regarding the application of fair and equitable utility rates amongst <br />ratepayers, it is necessary to perform a new cost of service and rate study to ensure <br />Water Resources has the financial resources to continue the delivery of high-quality <br />water and sewer services.