25A - AGMT - COMPREHENSIVE REPORT OF PROP 218 FEES

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Document Evaluation of and Recommendations Regarding Current Practices - Provide the relevant sections of a draft confidential white paper to City Manager's office documenting strengths, weaknesses, and any recommended changes to current City practices. Once City Manager's office has reviewed this document, we will facilitate a discussion of the findings and recommendations. Assume one comprehensive round of review and edit to the draft report. Approach #2: In this option, NBS will take the a more detailed approach to this evaluation than is noted in Approach #1, and will include additional tasks such as: developing a financial plan and preliminary per parcel cost estimates, for a potentially new dedicated funding source. NBS will perform the following subtasks for the Federal Clean Water Enterprise evaluation, if the City chooses this approach: Conduct an Orientation Meeting with City Staff - Consultants will participate in a meeting with City staff to discuss in detail, staffs pre -identified issues to be addressed through the course of these services and NBS' initial observations. At this session, initial subsequent steps to continue the review and/or aid City staff work will be identified. Prepare Financial Plan: NBS will prepare a detailed financial plan for the Federal Clean Water Enterprise that will provide the City with a "financial road -map" for the fund. This plan will lay out funding for capital improvements, repair and replacement needs, annual operating expenses, and reserve fund replenishment. We will work with Cfty staff to evaluate the "nexus" between Federal Clean Water Protection Costs and the benefits customers in the Water, Sanitary Sewer and Refuse Collection enterprises receive from this program. The financial plan will detail the enterprises' financial obligations and determine if any costs should be funded with a new funding source. Financial plan deliverables will include: • 10 -year financial projections model. Summary of current and projected net revenue requirements. • Review and recommend reserve fund targets, such as those for O&M and capital replacement. • Projected year-end reserve fund levels. • Calculated debt service coverage ratios (if applicable) Develop Preliminary Per Parcel Cost Estimates: NBS will develop preliminary estimates of the per parcel cost to fund the City's Federal Clean Water Enterprise, through a new dedicated funding source. We will evaluate two options for the City's consideration for funding the facilities: either a property -related fee or a special tax. The fees developed in this analysis will be preliminary estimates of the annual cost to property owners and will be based on property type2 (that is, single-family, multi -family, commercial, etc.). We will provide a discussion of the of the relative merits (pros and cons) of the various methods available for funding the City's drainage facilities, and our recommendation on what method best meets the City's needs. Prepare a Technical Memorandum: NBS will prepare a technical memorandum for review by City Staff that summarizes our findings and recommendations for the financial plan and funding Y This analysis will not develop a fee based on impervious surface area, orrunoff factors. if the City decides to proceed with implementing a new funding source for the Federal Clean Water Enterprise, a more detailed analysis will need to be conducted at that time which can include an evaluation of a fee based on impervious surface area and other factors, pending the availability (or development) of the required data. �ILN City of Santa Ana RFP No. 17-081 Comprehensive Proposition 218 Fees and Charges Compliance Assessment 12 25A-28