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An executive summary and introduction will present the purpose and results of this comprehensive <br />review of the City's enterprise fund rates, fees and direct/indirect and cross charges from other <br />City Agencies. Tables, graphs, and charts will be used as appropriate, but the emphasis will be on <br />providing a clear, concise and understandable paper that addresses: <br />Overall study methodology, with reference to Industry Best Management Practices, <br />Proposition 218 and 26. <br />Matrix and narrative of study findings, strengths and recommendations for changes in rate <br />and fee structures and how direct/indirect and cross charges are applied to the four <br />enterprise funds. <br />Appropriate figures and tables summarizing key aspects and results of the study. <br />If it is determined in Task 2.1. D that the City should establish anew funding source (such as a <br />new property related fee or special tax) for the Federal Clean Water Enterprise, the financial plan <br />and preliminary per parcel cost estimates and will be included in the separate technical memo <br />described for that task. As with the white paper, this memo will be addressed to the City Attorney <br />and directly provided to the City Manager's office. <br />Figure 2 below shows a sample matrix of how this assessment would support the narrative explanation <br />of NBS' technical memorandum for the water utility. Similar matrices will be developed for the sanitary <br />sewer and refuse utilities. <br />Figure 2. Example of Initial Assessment Matrix <br />Weaknesses Recommendation City Feedback <br />i, <br />Evaluate customer <br />7Ratesareed <br />Inequities in rate characteristics: no. meters by City will evaluate <br />Easy to administer payer classes. meter size, consumption consultants initial <br />on patterns, and peaking factors by results of this <br />angeserClass customer class. analysis, and <br />/All customers are <br />Easy to understand/ <br />Determine cost of providing <br />determine the <br />subject to the same <br />explain to customers. <br />service to each customer class. <br />feasibility of <br />rates <br />_ <br />implementing rates <br />Develop rates that recover the <br />for each customer <br />full cost of service from each <br />class. <br />customer class. <br />Revenue to utility isDevelop <br />a rate structure that <br />City agrees and <br />highly variable/ <br />Bills are minimized <br />collects more revenue from fixed <br />directs consultants to <br />unstable. <br />for low water users <br />charges. <br />develop rates in this <br />manner. <br />High Percentage of <br />Will create a need for <br />Consider implementing drought <br />Initial agreement from <br />Revenue Collected <br />larger rate increases <br />Gives customers <br />rates or conservation <br />City, will determine <br />from Volumetric <br />in the long -run if <br />more control over <br />surcharges that will enhance <br />billing system <br />Rates <br />deficiency is not <br />their water bill. <br />revenue collection as <br />corrected. <br />conservation increases. <br />capability. <br />Establish a rate stabilization <br />City agrees and will <br />reserve that can be used when <br />evaluate consultants <br />water sales are low. <br />funding options. <br />NBCity of Santa Ana <br />RFP No. 17-081 Comprehensive Proposition 218 Fees and Charges Compliance Assessment 15 <br />