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City of Santa Ana, CA I SANITARY SEWER AND WATER FINANCIAL PLAN <br />a workshop setting to incorporate City-specific experience with <br />each asset class. We anticipate one 2-hour workshop for each <br />area of capital infrastructure (sanitary sewer and water). <br />ELI Understanding the time-sensitive nature of this study, Black & <br />Veatch will leverage our extensive asset class library to the extent <br />possible to collaboratively guide the City. <br />3.4 Define appropriate method for the City of determining asset value <br />to comply with GASB34/35 standards. Black & Veatch proposes <br />evaluating the reproduction cost new less depreciation (RCNLD) <br />for assets within the inventory, as it provides a more accurate <br />account of current "value" of the assets than original acquisition <br />cost, less depreciation. CAMPS will be used to generate current <br />asset values and depreciation. <br />3.5 Develop R&R schedules from CAMPS projecting the specific <br />capitalized rehabilitation, replacement, and costs needed for the <br />next 20 years. Costs are escalated to the year of the R&R. <br />3.6 Prioritize the R&R schedule based on "needs first" constraint. <br />Needs first relies on the rehabbing or replacing assets that have <br />the highest immediate possibility of failure based on their <br />condition or life cycle. The updated R&R schedule will serve as the <br />basis for R&R activities in the rate analysis portion of the study. <br />3.7 Specific considerations in the evaluation will be using NASSCO <br />standards for sewer pipes and the incorporation of the water <br />meter replacement program. <br />SEWER AND WATER RATE STUDY <br />Task 4 - Financial Plan <br />The objective of this task is to develop the financial plan for the sanitary <br />sewer and water systems. Specific subtasks are: <br />4.1 Review the latest Master Plans and Capital Improvement Program <br />(CiP) documents Black R. Veatch will examine <br />major C1P to: (1) identify whether the list of <br />proposed projects appears to adequately and <br />thoroughly address sanitary sewer and water <br />improvement needs for the planning period, <br />and (2) determine whether the City's <br />methodology for project cost estimating <br />appears reasonable. <br />4.2 Develop historical bill tabulation for water <br />based on current billing system. The bill <br /> <br />100% <br />90% Bill Tabulation Distribution <br />N 90% <br /> <br />a <br />70% - <br />b <br />60% <br /> <br />, <br /> sox <br /> 4% - <br />-' 30% <br /> 24% <br />G1 10% <br /> <br /> 1 10 100 1,000 10,000 100,000 <br />Sloat?ly Water Usage - Cd <br />--tteswatial- - - •Commemiai-- - -la8utrial <br />BLACK & VEATCH I Methodology <br />25D-17