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Contract - Davis Farr LLP - 2017-04-17 Davi s Fa r rDavis Farr LLP 2301 Dupont Drivel Suite 200 I Irvine,CA 92612 CERTIFIED PUBLIC ACCOUNTANTS Main:949.474.20201 Fax:949.263.5520 April 17, 2017 Mr. Scott Carroll General Manager Costa Mesa Sanitary District 290 Paularino Avenue Costa Mesa, California 92626 RE: REQUEST FOR RATE ADJUSTMENT Dear Mr. Carroll: Davis Farr LLP (Davis Farr) has been providing Treasurer and, on occasion, other financial services to the Costa Mesa Sanitary District (District) since it separated from the City of Costa Mesa in 2004. Services performed have been paid at rates last approved by the Board of Directors effective July 1, 2015. Since then, the Consumer Price Index (CPI) for All Urban Consumers has increased 3.02%as follows for the Los Angeles-Riverside-Orange County areas: CPI March 2017 254.525 July 2015 247.066 Increase in CPI 7.459 Percent increase in CPI 3.02% In order to coincide with the District's new budget cycle, we respectfully request that the hourly rates for Treasurer services be increased by approximately 3% as follows, to be effective beginning July 1, 2017. Proposed Current Increase Classification Rate Rate Amount Percent Partner $126 $123 $3 2.44% Senior Consultant 90 88 2 2.27% Thank you for consideration of this rate adjustment. Sincerely, Marcus D. Davis, CPA Partner