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components similar to the other utilities and (e.g.transmission vs. distribution). However, one <br /> issue which may be considered in this study is basin-specific or geographic-specific surface <br /> water connection charges. For a variety of reasons, HDR generally discourages basin-specific or <br /> geographic-specific connection charges given that the City's other utilities view connection <br /> charges on a system-wide or postage stamp basis. At the conclusion of the study, HDR will <br /> have developed a surface water connection charge per impervious surface unit(ISU). <br /> HDR will work with the City during the development of these connection charges to review the <br /> data and information and the assumptions used within each analysis.The Excel-based worksheets <br /> developed as a part of the study will be provided to the City at the conclusion of the study. <br /> Deliverables from Task 3— <br /> • Development of cost-based water, sewer, and surface water connection charges based <br /> upon the City's existing connection charge methodology. <br /> • A connection charge model(s) developed in Excel <br /> Task 4: Review of Assessment Methods for Water and Sewer Connection Charges <br /> The prior task will have established the connection charge for each utility in terms of a <br /> $/equivalent unit basis. There are different methods that a utility may use to assess the <br /> connection charge for larger capacity customers. For example, capacity for water utility may be <br /> assessed on the basis of fixture counts, estimated customer demands, square footage of the <br /> building, size of the customer's meter,etc. At the present time, the City essentially assesses <br /> residential and multifamily customers on a dwelling unit basis, and for commercial/industrial <br /> customers, assesses on the basis of estimated demands on the square footage basis. As a part of <br /> this study,the City would like to explore the advantages and disadvantages of using meter <br /> capacities for purposes of assessing connection charges for water and sewer customers. Surface <br /> water connection charges will be assessed on the basis of the calculated impervious surface area <br /> of the property.The issue of redevelopment of a property and assessment of connection charges <br /> for expanded capacity needs is addressed within Task 5. <br /> As a part of this task, HDR will compare the City's existing assessment method, particularly for <br /> commercial customers,to the alternative of using meter capacities. HDR will discuss the relative <br /> advantages and disadvantages of these two approaches to provide a better understanding of the <br /> trade-offs between issues such as administrative simplicity and equity. In addition, HDR will <br /> review a number of recent connection charge assessments and provide a side-by-side comparison <br /> of the charges as they were assessed by the City, compared to the charges which would have been <br /> assessed under a meter capacity approach. This will provide the City with a better understanding <br /> of the potential impact of any proposed change in the method of assessment of these charges. <br /> HDR will also evaluate the City's requirement of payment in full at time of connection with other, <br /> local, municipalities and district's to ensure the City is following accepted practices for fee recover. <br /> At the conclusion of this task, HDR will provide to the City a schedule of the charges under the <br /> existing assessment method and the meter capacity assessment method.This will provide the City <br /> with the information needed to develop the connection charge ordinance for either assessment <br /> method. <br /> Page A-3 <br />