25A - AGMT - COMPREHENSIVE REPORT OF PROP 218 FEES

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service, and rate and fee analysis to provide an assessment of strengths and opportunities for the City's review. The following tasks are planned for this evaluation: 2.1. EVALUATION OF ENTERPRISE FUND RATES NBS will review the utility rates for the City's four enterprise funds: Water, Sanitary Sewer, Refuse Collection, and Federal Clean Water Protection. This review will determine whether current practices are generally consistent with industry standards and legal requirements, such as Proposition 218, and where appropriate, will discuss ranges of acceptable practices. We will provide recommendations on changes, if needed, to the City's utility rate structures, and costs shared between funds. This scope of services is not proposing to calculate new utility rates for the City; but rather, to provide experienced professional opinions aiding the City's approach in the future to developing its utility rates. The result of this effort will be an analysis of known or found improvements, which will allow City staff to plan for and incorporate changes in future utility rate setting processes. NBS will review the following information as part of this process: Existing rate structures — specifically rate design • Budgeted revenues and expenditures • 2014 Water and Sewer Rate Studies, and other similar studies available for the other enterprise funds and in particular the impacts that more recent Prop 218 court decisions may have related to the cost -basis for rates • How refuse services are provided, and potentially the cost -basis for current refuse rates, which may include reviewing Refuse Collection Service Agreements • Proposition 218 validation processes Our approach to the utility rate evaluation for the four enterprise funds, is described in the following two subtasks. 2.1.A, B and C: Water, Sanitary Sewer and Refuse Collection Rate Evaluation NBS will perform the following subtasks (i.e., A, B and C) for the Water, Sanitary Sewer and Refuse Collection rate evaluation: Conduct an Orientation Meeting with City Staff - NBS will participate in a meeting with City staff from each department, as appropriate, to discuss staffs pre -identified issues to be addressed through the course of these services and NBS' initial observations. We will also establish initial subsequent steps to continue the review and/or coordinate additional input needed from City staff will be identified. Document Existing Conditions — NBS will review the City's current utility rate schedules, rate studies, budgets, and any other supporting analyses and/or documentation supporting the City's utility rates. Acquire a broad understanding of each enterprise fund's operations, current rate structures, known issues/deficiencies in current rates, known areas for improvement, and availability of customer usage data. NBS will summarize key findings and coordinate review of this summary with City staff to ensure mutual understanding of current practices. ri—r B �mss- City of Santa Ana RFP No. 17-081 Comprehensive Proposition 218 Fees and Charges Compliance Assessment 10 25A-26