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Attachment 4 References - Additional Pages <br />Reference #1: <br />Customer Name: City of Redding <br />Contact Individual: Brian Crane, Public Works Director <br />Address: 777 Cypress Avenue, Redding, CA 96001 <br />Phone Number: (530) 245-7155 <br />Facsimile Number: Not Available <br />Email: bcrane@ci.redding.ca.us <br />Contract Amount: $153,000 <br />Year: 2016 with Previous Study Completed in 2014 <br />Brief description of scope or services provided: Utility Rate Program Update <br />In 2014, NBS completed a rate study, including revenue requirements, cost -of -service analysis, and <br />rate design for the City's water, sewer and solid waste utilities. While the overarching purpose was <br />to sufficiently fund projected operational and capital improvement costs, a thorough review of rate <br />design was also a primary concern. Recommended rates and impact fees from the 2014 study were <br />adopted and implemented. <br />In 2016, the City retained NBS to update the 2014 study for the water, sewer, and solid waste rates, <br />with a focus on the legal concerns of Prop 218 court cases, particularly the cost -based tiers for water <br />rates. This study also carefully considered projected consumption levels, since the City's total annual <br />consumption has continued to decline the last several years in response to drought conditions. <br />Another key aspect of the rate study was working with a Citizens Advisory Group that reviews and <br />provides recommendations to the City Council. The committee's concerns included financial/rate <br />setting policies, details of the financial plans and revenue requirements, and developing legally <br />defensible rate design alternatives. In light of the San Juan Capistrano decision3 that placed more <br />demanding cost -basis requirements on water rates. Based on NBS' recommendations, the City <br />decided to switch to a uniform (single -tier) rate design rather than retain a multi -tiered rate design. <br />In 2017, the City has again retained NBS to update their development impact fees, reflecting their <br />continued confidence in NBS' ability to effectively complete these studies. <br />3 See Capistrano Taxpayers Association V. City of San Juan Capistrano, Fourth District Court of Appeal, Division three, <br />April 18, 2016. This court ruling requires that tiered water rates demonstrate a clear "cost -basis". <br />I BS City of Santa Ana <br />ID RFP No. 17-081 Comprehensive Proposition 218 Fees and Charges Compliance Assessment 23 <br />