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Exhibit A (Scope of Work) <br />provide the opportunity to review and discuss any issues or concerns by either party for the <br />Study. The meeting will also review the data issues associated with the Study, particularly as it <br />relates to updating the impervious surface parcel data. After the meeting, HDR will follow-up <br />with City staff (via telephone / email) for additional items or explanations, as necessary. <br />Task 2 Assumptions: <br />• A two hour virtual kick-off meeting with the HDR project manager and project analyst. <br />• The City will provide the data necessary to complete the requested analyses. <br />Task 2 Deliverables: <br />• Electronic version of the written data request. <br />Task 3: Revenue Requirement Analysis <br />The revenue requirement will be based on the 2024 rate study stormwater revenue requirement. <br />The intention is to design rate alternatives for 2027 through 2028 fiscal year (FY) that are <br />revenue neutral as compared to revenue requirements determined in the 2024 rate study. Some <br />adjustments to the revenue requirement may need to be made due to changing financial <br />conditions. <br />Task 3 Assumptions: <br />• Use the 2024 stormwater revenue requirement for the cost of service. <br />Task 3 Deliverables: <br />• An adjusted revenue requirement for which the cost of service will be based. <br />Task 4: Cost of Service Analysis <br />A cost of service analysis differs from a revenue requirement analysis in that a revenue <br />requirement analysis reviews the overall adequacy of a utility’s rate revenues, while a cost of <br />service analysis proportionally distributes the revenue requirement of a utility to the utility’s <br />customer classes of service. The cost of service provides a defensible basis for proportionally <br />assigning costs and establishing “cost-based” rates which reflect each customer group’s unique <br />facility requirements and the demands that they place upon each system. Though the main <br />purpose of this project is to design stormwater rates, the cost of service is used as a basis for <br />establishing proportional rates by customer type. HDR will develop a cost of service using <br />generally accepted rate making principles utilizing different allocation methods for allocating the <br />revenue requirement such as impervious area, total area customer related costs and other <br />methods as appropriate. <br />Task 4 Assumptions: <br />• Review of the customer classes and customer class characteristics. <br />• Proportional distribution of the stormwater costs to the applicable customers classes. <br />• Average unit costs for the stormwater utility will be developed for use in developing <br />rates. <br />Task 4 Deliverables: <br />• An electronic copy of the rate model with the updated cost of service analysis. <br />Task 5: Rate Design Analysis <br />This task will review and analyze the current utility stormwater rate structure. HDR will <br />recommend rate structure modifications reflective of the cost of service findings and the City’s <br />policy objectives for rate and revenue stability, customer equity, efficiency of use, and <br />administrative practicality. For each proposed rate design, the revenues to be generated from