25A - AGMT - COMPREHENSIVE REPORT OF PROP 218 FEES

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Therefore, these permit (user/regulatory) fees are not subject to Prop 26's definition of a tax. The only limitation to the fee amount is that it not exceed the estimated cost of providing the service for which the fee is charged. Although NBS will coordinate data collection and review with each City department as appropriate, we will directly be reporting to the City Manager's office, which will ultimately oversee the review of, and direction provided on all alternatives and recommendations. The final work product for this study will be a confidential white paper directly addressed to the City Attorney, but also provided to, and coordinated with the City Manager's office. Our task plan and methodology for completing this scope of work is presented in the following section. Task Plan 1. KICK-OFF MEETING AND DATA COLLECTION NBS will hold a kick-off meeting with City staff to review and discuss the overall study objectives, questions, and concerns that need to be addressed, to confirm a mutual understanding of how the study will be conducted. A data request will be issued to City staff prior to the initial kickoff meeting that will list the data needed for consultants to begin the study. Types of data required from the City — The basic types of data and documents required from the City will include the following: • Annual operations budgets and projected capital improvement plan costs for each utility, and staffing schedules • Current fees, charges, and rate schedules for each utility • Prior utility rate studies • Prior studies supporting establishment of current user/regulatory fees • Documentation supporting inter -fund charges and overhead cost allocations • Total annual and monthly water sales, for the last three years • Summary of annual water revenue from fixed charges and volumetric rates • For refuse collection, the number of accounts by customer class (residential, commercial, etc.) and level of service (i.e., size of container and number of pickups per week) • For storm drainage, number of parcels subject to these fees and type of parcel 2. ASSESSMENT OF ENTERPRISE FUND RATES, FEES & CHARGES NBS will work with City staff to perform an evaluation of the existing rate and fee structures, direct and indirect charges, cross charges from other City agencies, and Proposition 26 and 218 validation processes to evaluate the strengths, weaknesses, and opportunities for improvement to strengthen the City's legal and financial standing'. NBS will meet with each department separately to discuss their initial perspectives on the concerns and issues that will be addressed in this study. Once an initial evaluation is complete, NBS will review the City's current practices against decades of professional experience performing cost allocation, cost of ' Since we are not attorneys, NBS does not provide legal advice or legal opinions; we assume the City Attorney's office will provide all legal review— NBS will coordinate such review with the City Attorney. .q� City of Santa Ana k)NBS RFP No. 17-081 Comprehensive Proposition 218 Fees and Charges Compliance Assessment 9 25A-25