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Exhibit A (Scope of Work)   <br />Water and Filtration Charges – The City has a water rate structure which separates the <br />filtration charges from the other water-related T&D charges. The City currently has four retail <br />rate schedules. The present rate design for residential customers includes a minimum volume <br />of water within the base (meter) charge. For a 1/2” – 3/4“ meter, 5 hundred cubic feet (CCF) of <br />water is included within the base charge. All usage, over and above 5 CCF is billed at the <br />consumption charge ($/CCF). The volume of water included within the minimum charge varies <br />by meter size with larger meters receiving a larger volume allowance within the base charge. <br />The City would like to review the issue of the inclusion of water within the base charge, as well <br />as a review of the amount of water included within the base charge (i.e., the 5 CCF). For a <br />variety of reasons, many utilities have transitioned away from the inclusion of water within base <br />(fixed) charges. <br />In order to provide a comprehensive review of this issue, HDR will first review individual <br />customer billing data to determine usage patterns and the impact of the volume allowance. At <br />the same time, the value of 5 CCF of water must be viewed in the context of the fixed base <br />charge. Elimination of the 5 CCF will have an impact upon the level of the base charge for each <br />meter size and the amount of revenue collected regardless of the customer’s total usage. HDR <br />will discuss with the City our initial findings and conclusions regarding the inclusion of water <br />within the base charge. Based upon that discussion and if deemed appropriate, HDR will <br />develop alternative rate designs (structures) to transition the City to their desired approach. <br />This will include a review of the fixed and variable charge revenue generation for the utility. <br />Sewer Charges – The City’s sewer charges for non-residential and wholesale customers uses <br />the concept of equivalent residential units (ERUs) to assess and charge customers. In the case <br />of the City, an ERU is currently defined as 9 CCF. The City has used this definition for many <br />years and desires to have it reviewed in more detail to confirm that it remains appropriate, and if <br />not, what volume or amount would be more reflective of residential usage. As a part of the prior <br />tasks, HDR will have already reviewed this issue in great detail and the cost of service analysis <br />will be reflective of the appropriate definition of an ERU. Should the City decide to revise the <br />definition of an ERU based upon HDR’s findings and conclusions, new sewer rate structures will <br />be developed accordingly. <br />Stormwater Charges – As noted, the City is anticipating the separation of stormwater charges <br />from sewer charges and transition to stormwater rates based on impervious area. Given this <br />future transition, it is anticipated that the current stormwater rate structure will be maintained <br />during this study and only the level of the rate will be adjusted as noted as part of this study. <br />Task 6 Assumptions: <br /> Development of up to two water and sewer rate alternatives for each rate schedule. <br /> Develop water and sewer bill comparisons for the City to review customer bill impacts. <br /> Develop proposed stormwater rates while maintaining the current rate structure for <br />future transition to future rate design alternatives. <br />Task 6 Deliverables: <br /> An electronic copy of the rate model with the updated rate design analysis for each <br />utility. <br />Task 7: Miscellaneous Charges Review