HDR Engineering Inc. 1/18/2022 Amendment 1

• Lift Stations • Sewer Lagoons • • Sewer Treatment Plants • Water Treatment Plants • Water Wells • Water Towers HDR will determine if local,state,or federal regulations create an ARO for the aforementioned assets. Further, easements should be reviewed to determine potential ARO's. HDR will also determine likelihood of abandonment of assets. If ARO is identified,it shall be valued based on the best estimate of the current value of all outlays expected to be incurred to properly dispose of the asset as stated in GASB 83. Task 5 Assumptions: • A review of other utility's approach to addressing accounting and reporting for asset retirement obligations. Task 5 Deliverables: O A draft and final electronic technical memorandum summarizing the review and approaches of other utilities to address GASB 83. Task 6: Biosolids Site Feasibility Study(Original and Updated Task) HDR will analyze the cost of biosolids hauling and application for 2019-2022 and determine the long- term financial benefits of shorter haul to Marshland versus hauling to Eastern Washington.This includes a probable payback period for the property acquisition(Marshland)against the incremental cost of a more distant haul. Task 6 Assumptions: 6 City staff will provide the City's current analysis of the biosolids site feasibility study. • A two hour conference call with City staff and HDR staff to review and discuss the analysis. Task 6 Deliverables: tl Summary draft and final electronic technical memorandum of the review of the City's biosolids site feasibility analysis. Task 7: 2022 Surface Water Comprehensive Plan Update Financial Analysis Chapter Update (New Task) The City is in the process of completing an update to the existing 2017 Surface Water Comprehensive Plan. As part of the 2017 Surface Water Comprehensive Plan Volume 1 Summary and Implementation Plan,a financial analysis chapter was developed to demonstrate the funding of the identified needs.The City has requested that HDR include in this amendment,a task to provide the development of the financial section for the 2022 Surface Water Comprehensive Plan Update. This will include the development of a summary revenue requirement to fund a substantial increase in capital improvements and staffing to meet both programmatic and Municipal Stormwater Permit requirements. And a capital improvement,operating,and staffing funding analysis,and resulting overall stormwater utility rate impacts.A written financial section will be provided to the City for the update. Task 7 Assumptions: