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Exhibit A (Scope of Work)   <br /> Septage <br /> Wholesale – Alderwood <br /> Wholesale – Mukilteo <br /> Wholesale - Silver Lake <br />As a part of the sewer analysis, HDR will review and evaluate the sewer customer data to <br />determine the number of accounts, equivalent residential units (ERUs), and wastewater <br />volumes (water usage). <br />From the collection of sewer customer data and information, the City’s sewer costs will be <br />equitably distributed to each of the customer group, or class of service. Similar to the water <br />T&D cost of service study, the cost information will be functionalized, allocated, and then <br />distributed to the classes of service using generally accepted cost of service methodologies. <br />The City’s data is currently functionalized between the major categories of collection, treatment, <br />bio-solids, and pretreatment. In allocating these costs, they will be segregated between <br />volume-related, strength-related (BOD and TSS), and customer-related. Distribution factors will <br />be developed for each of these specific cost-classifiers using the best available City and <br />customer class specific data. The cost of service will be summarized to compare the current <br />revenues of each customer class of service to their distributed cost of service. This will provide <br />a measure of the relative equity between each of the customer classes of service. In addition, <br />average unit costs will be developed (e.g., $/CCF, $/lb. for BOD and TSS, and <br />$/customer/month). Average unit costs are a useful starting point for rate design (further <br />discussed in Task 5). <br />Task 5 Assumptions: <br /> Review of the customer classes and customer class characteristics. <br /> Equitable distribution of the water transmission and distribution costs to the applicable <br />customers classes. <br /> Equitable distribution of the water filtration costs to the applicable customer classes of <br />service. <br /> Average unit costs for each utility will be developed for use in developing proposed <br />rates. <br />Task 5 Deliverables: <br /> An electronic copy of the rate model with the updated cost of service analysis for the <br />water and sewer utility. <br />Task 6: Rate Design Analysis <br />This task will review and analyze the current utility rate structures for water, water filtration, <br />sewer, and stormwater. HDR will recommend rate structure modifications reflective of the cost- <br />of-service findings and the City’s policy objectives for rate and revenue stability, customer <br />equity, efficiency of use, and administrative practicality. For each proposed rate design, the <br />revenues to be generated from the fixed and volume-based components of the rate structure <br />will be identified to help better address the issue of revenue stability. Bill comparisons will be <br />developed to numerically and graphically show the bill impacts of the proposed rates compared <br />to the present rates. <br />The City has identified a number of specific issues to be addressed within the rate design task. <br />These issues vary by utility and are discussed in more detail below.