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EXHIBIT A Stantec Consulting N= December 7, 2018 City of Santa Ana Attn: Rudy Rosas Public Works Agency, City Corporation Yard 215 South Center Avenue, Building A Santa Ana CA 92703 Re: Capacity Charge Study for Water and Sewer Enterprises Dear Mr. Roses, Scope of Work for Capacity Charge Study On behalf of Stantec Consulting, we are pleased to submit the attached scope of work and fee to conduct a Water and Sewer Capacity Charge Study for the City of Santa Ana as an extension of our current rate study project for the City. Much like the current water and sewer rate study, we propose to have Hildebrand Consulting as a subconsultant (as the Project Manager).The study is intended to develop Capacity Charges for the water utility and update the capacity charge for the sewer utility. A capacity charge, also known as Capital Facility Charges and Connections Fees, is a charge imposed by a public utility on new development wishing to connect to the water/sewer systems or on existing users that wish to upsize their connection or increase required capacity within the system. The revenue collected from a capacity charge is restricted (see California Government Code 66000 et. seq.) and can only be used to increase the capacity of utility infrastructure, reimburse the utility for past expansion projects, or for acquiring access to new water supply (e.g, purchasing water rights). We will review the existing system assets for both water and sewer and review their respective capital improvement plans to determine the portion of the costs eligible for recovery within such capital recovery charges to ensure that a rational nexus exists between the capital costs and the benefits to new customers. The following describes our proposed scope of work. Task 1-A -- Project Initiation & Data Collection To initialize the study, we will conduct a Kick-off Meeting conference call to discuss the goals of the project, data requirements, communication preferences, and the overall project schedule and key milestones for deliverables. Prior to the Kickoff Meeting, we will provide an initial data request list, which will include the asset register for both systems, system capacity information, and capital spending information. We may already have some of this information from our existing work. Upon receipt we will review all data received to confirm its completeness. As part of our data review, and prior to the Kickoff Meeting, we will review origin and basis for the City's existing Water Availability Fees. Task 1-13: Evaluate Fxisting Assets and Planned Growth Projects We will evaluate the value of the water and sewer system assets through the City's asset register. Based on original cost and age, we will assign each asset both a value and a function such that the value of each component of the existing water system is determined. Our methodology for calculating the value of the system