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A. Cover Letter ® Stantec City of Santa Ana Attn: Cesar Barrera Public Works Agency, City Corporation Yard 215 South Center Avenue, Building A Santa Ana CA 92703 Re: RFP No. 17-142 — Water and Sewer Enterprise Cost of Service Study Dear Mr. Barrera and Members of the Selection Committee: January 23, 2018 We are pleased to present this proposal to conduct a water and sewer cost of service study for the City of Santa Ana (City). Our team understands that the success of your utility is often judged on how well you avoid financial turmoil and legal challenges while you continue to invest in your assets and deliver great services. A financial plan and rate analysis from Stantec helps you identify difficulties in advance, analyze your options and plot the course for a safe arrival at your future. Our project team is uniquely qualified to assist the City in this important study. Our Project Manager, Mark Hildebrand, has 16 years of utility rate consulting experience in California. He is also an expert in the legal landscape for water rate -setting in California and has had articles published on the implications of Proposition 218 on utility rate making. He will serve as your main point of contact during proposal evaluation as well as during the project. Our Regional Advisor, John Moynier, is based in our Irvine office, and has a long history of working as a trusted advisor to local public utilities, including a number of Orange County water and wastewater agencies. We have teamed with CV Strategies (a frequent partner to Stantec on similar projects) to provide translation services and potentially provide public outreach (as a value-added service if requested by the City). Mr. Hildebrand and a number of his colleagues are currently serving on the AWWA Rates and Charges Committee where they are actively involved in developing the industry standards for rate setting, as published in AWWA's Manual M1 — Principles of Water Rates, Fees and Charges. This experience means we bring industry best practices to our approach to the City in the form of financial forecasting, cost of service, and rate making. Stantec Consulting Services Inc. (Stantec) is a publicly traded corporation, and Mr. Hildebrand has the authority to make legally binding commitments for Stantec. If you have any questions, please do not hesitate to contact us. Sincerely, ark n Project Manager & Contracting Authority Mark.Hildebrand@Stantec.com 1340 Treat Ave. Suite 300 Walnut Creek, CA 94597 (510)316-0621 City of Santa Ana, California I Water and Sewer Enterprise Cost of Service Study Stantec 1