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CITY OF SANTA ANA <br /> <br /> <br />COST OF SERVICE STUDY 21 <br /> <br />4. Cost allocation methodology <br />5. Recommendations <br />6. California Proposition 218 Compliant Notices <br />a. Prepare rate adjustment notices compliant with Proposition 218 <br />requirements. Notices will be prepared in three languages, English, <br />Spanish and Vietnamese. Notices to be delivered electronically as <br />Microsoft Word document. <br />b. Pass-through adjustment formula and means of establishing pass through <br />adjustments shall be explicitly stated. <br /> <br /> <br />B. CONTENT/TASKS <br /> <br />Perform a fully allocated sanitation rate study tailored for Santa Ana, including the following: <br /> <br />1. A rate structure based on cost of service sufficient to meet the revenue requirements <br />of the sanitation enterprise; <br />2. Classify functional expenses to cost components: capacity (demand) costs (e.g., <br />Environmental Sanitation, Weed Abatement, Roadway Cleaning, Street Sweeping), <br />commodity costs - related to Sanitation Services, customer costs and other direct <br />costs; <br />3. Classify operating, administrative, operations and maintenance (O&M) expenses, <br />collection/disposal cost, and reserve fund requirements; <br />4. A rate structure that considers and makes provisions for the following factors: <br />a. Current and future cost of providing sanitation services in accordance <br />with established and anticipated standards and regulations. <br />b. A recommended sanitation rate structure that is in compliance with <br />Proposition 218; <br /> <br />5. Provide a comparison of current sanitation rates to comparable surrounding <br />sanitation program; <br />6. The type and amount of reserves appropriate to the City’s sanitation operations <br />taking into consideration reserves for cash flow, catastrophes, infrastructure <br />replacement (proprietary assets) and other appropriate purposes; <br />7. A comparison of customer groups and cost of service with neighboring <br />municipalities of comparable size, type of treatment, and level of service; <br />8. A review and analysis of current rate and fee structures. Consultant should <br />recommend changes if appropriate; and <br />9. Consultant shall assess the recommended rate structures and their impacts on the <br />ability to fund sanitation operations as well as their impact on the City’s rate payers; <br />10. A review of elderly low-income and sanitation rate programs provided by other <br />agencies and propose appropriate elderly low-income sanitation rate for Santa Ana; <br />11. The benefits of any proposed rate modifications shall be weighed against the <br />financial impacts on the ratepayers. Consultant shall analyze the proposed rates for <br />customer impacts and develop alternative rates modeled to address financial <br />impacts on ratepayers. The analysis shall include: