NBS GOVERNMENT FINANCE GROUP, INC. - 2017

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Reference #7: Customer Name: Rowland Water District Contact Individual: Sean Henry, Finance Officer Address: 3021 South Fullerton Road, Rowland Heights, CA Phone Number: (562) 697-1726 Facsimile Number: Not Available Email: shenry@rowlandwater.com Contract Amount: $70,000 Year: 2016 to 2017 Brief description of scope or services provided: Water and Recycled Water Rate and Capacity Fee Study NBS recently completed a Water and Recycled Water Rate and Capacity Fee Study for Rowland Water District. When the study began, the District was projecting an operating loss and was not expected to meet its required debt coverage ratio without a rate increase. A key objective in this study was to develop potable water rates that collect a greater percentage of revenue from fixed charges to ensure long-term revenue stability for the District. Other objectives included developing cost -based tiered volumetric rates, drought rates to coincide with the District's Water Shortage Contingency and surcharges for customers in various elevations zones. For the recycled water system, the main objectives were to develop a method for allocating costs in the District's budget to the potable and recycled water systems and to establish a financial plan that achieves the District's goal to have recycled water customers bear a greater percentage of their costs. NBS supported District staff in a Board workshop to obtain approval to move forward with the Proposition 218 process and at the public hearing to adopt new rates. In this study, NBS also developed new water capacity fees, based on meter, size, to replace the District's previous acreage supply fee. The main objective was bringing the fees for new development in line with industry standards. (ry � BS City of Santa Ana ��# I V BSRFP No. 17-081 Comprehensive Proposition 218 Fees and Charges Compliance Assessment 28