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Exhibit A (Scope of Work) <br />the fixed and variable-based components of the rate structure will be identified to help better <br />address the issue of revenue stability. Bill comparisons will be developed to show the bill <br />impacts numerically and graphically of the proposed rates compared 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. <br />Sewer/Stormwater Charges – The other sewer charge issue to be addressed in this task is the <br />separation of stormwater charges from sewer charges. The current sewer rates include <br />stormwater charges. The City is ready to establish stormwater rates based upon impervious <br />areas. If that is the case, then the sewer charges (i.e., rates) developed as a part of the Study <br />will eliminate that portion of the rate which is related to stormwater costs. Bill comparisons will <br />need to be developed to illustrate the combined customer bill impact of the elimination of the <br />stormwater charges within the sewer rates and the establishment of separate stormwater <br />charges. <br />Stormwater Charges – As noted above, the City is interested in transitioning to separate <br />stormwater rates based upon impervious area. This issue and the transition to impervious <br />charges has been studied extensively by the City since the last comprehensive rate study. <br />Similar to the City’s previous studies on this topic, this is a relatively complex task requiring a <br />number of analytical steps jointly performed by HDR and the City. Provided below is a more <br />detailed discussion of these steps and the role of the City and HDR in them. <br /> Review of Parcel/Impervious Surface Data – The development of stormwater charges <br />based upon the impervious surface area of a parcel requires a detailed review of non- <br />residential parcel data. The City and HDR will jointly work on this particular aspect of <br />stormwater rates. The parcel data developed in 2020 for a similar project will be used for this <br />analysis unless the City chooses to provide updated parcel data. In the past, HDR has been <br />responsible for sorting and “scrubbing” the City’s parcel data (e.g., duplicates, data errors, <br />non-billable parcels). <br /> Establishing Data (Billing) Units – The development of impervious surface-based <br />stormwater charges cannot be developed until the parcel data has been scrubbed and <br />resolved to the satisfaction of the City and HDR. In part, the data must be sorted to <br />accommodate the residential and non-residential stormwater rate structures. For residential, <br />the City is anticipating the continued use of a flat rate, with possibly a small/large category. <br />For non-residential, each parcel must be assessed and the impervious surface area <br />determined. From that, an impervious surface unit (ISU) must be established. Once the ISU <br />is defined, then the number of commercial ISU billing units can be established. <br /> Design of Stormwater Rate Alternatives – With the billing information above, HDR can <br />design the stormwater rates for residential and non-residential customers/parcels. HDR will <br />design two alternatives for the residential customer class, one similar to the current structure <br />which is flat rate per parcel and another that has two rates, one for small parcels and <br />another for large parcels. For the non-residential rates, two alternatives will be designed; a <br />$/square foot of impervious area and an approach based upon the relationship of lot size <br />and impervious area (% range). Bill comparisons will be developed comparing the current <br />rate structure and the alternatives developed for residential and non-residential parcels. This <br />comparison will quantify the impact to different types parcels and identify parcels with the