Agenda Packet_2023-08-01 - Laserfiche WebLink

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your review and feedback. We will create a memorandum detailing the analysis performed, comparable entities identified, performance metrics considered and how the City compares, and recommendations for the City to consider. The draft memorandum will be distributed to City staff for review and comment. Upon receiving comments from City staff, we will adjust our analysis and/or narrative as required and distribute the final memorandum. Once all of the analyses are complete, we will provide the City with detailed schedules containing all of the assumptions and detailed projections used in developing the analysis. The detailed schedules will also be included in the draft report then be distributed to the City for thorough review and comment. Implementation/Prop 218 Support The rates that SCS will calculate will support the requirements of Prop 218. Additionally, we will assist the City in preparing a notice that will need to be mailed to all property owners/customers at least 45 days prior to a public meeting. At the meeting, residents can protest. If there is no majority protest, fees can be adopted. Based on the cost to provide services and rate structure analysis described above, the rates SCS will develop with the City will meet all of the Proposition 218 requirements. Public Meetings In addition to the written report, we will develop a PowerPoint presentation summarizing the findings. Then we will also attend a meeting with the City Council and/or the public where we will present the results of our analysis. As earlier discussed, it is important to have early interaction with key stakeholders, but this is the first time many of the residents will hear the details of the rate study performed. It is important to convey that the City is acting in the best interests of the residents. We will communicate: • The responsibility of a sanitation utility to provide an essential service and protect the environment • The key issues you are facing and the associated costs driving the need for additional revenue • The basis for calculating rates, including the equitable distribution of costs and desire to encourage diversion • Sensitivity in customer demand or satisfaction as a response to rate changes • Miscellaneous or one-time services that could be charged fees and not included in the base rates What Makes Our Project Approach Different? Project success couples experience in political decision making with input from you and your staff, and the technical ability to plan for your future success. We understand that an effective financial plan does not look to simply "balance the budget". Rather, it should be a long-term forecast that helps guide future decision -making, identifying trends and vulnerabilities that affect long-term financial sustainability. An effective plan should account for known costs (capital, operations, etc.), while also testing the sensitivity of the outcomes to changes in variables. Our strategic approach combined with effective communication demonstrates to you, your Council, and your residents how today's decisions will affect future outcomes. Sanitation Cost of Service Study Project Schedule Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Project Initiation Revenue Sufficiency Anal) Cost to Provide Services Rate Benchmarking Rate Structure Analysis Ordinance/Policy Review Presentation of Results I y Council 14 — 73 8/1/2023