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Deliverables from Task 4— <br /> • Review of the advantages and disadvantages of the existing water and sewer assessment <br /> method compared to a meter capacity assessment method. <br /> • Development of a schedule of the connection charges for each utility using the existing <br /> assessment method and the meter capacity assessment method. <br /> • A side-by-side comparison of the recent charges assessed to customers versus an <br /> assessment using the meter capacity method. <br /> • Comparison of regional connection fees. <br /> Task 5: Review of Assessment of Connection Charges In Cases of Redevelopment <br /> Connection charges are assessed to new customers connecting to the system, but also in <br /> situations where there is a change of use and an expansion of capacity. There are a number of <br /> issues associated with the assessment of connection charges in a redevelopment situation. First, <br /> there is the question of the valuation of the existing capacity of the customer.The customer may <br /> have paid for the capacity 20 years ago and should the credit for that capacity, if any, be valued at <br /> all was actually paid or its value in today's dollars? The next question is whether a credit should be <br /> provided for the existing capacity, particularly if the customer was connected to the system prior <br /> to the City's initial implementation of connection charges(i.e.,the customer has paid $0 <br /> connection charges in the past for their existing capacity). HDR is of the opinion that a credit <br /> should be provided to the customer for any existing capacity. In other words,the customer that is <br /> expanding to a 2 inch meter from a 1 inch meter should receive credit for the value of 1 inch of <br /> capacity. In that way,the customer is essentially paying only for the upsizing or incremental <br /> capacity. The same question applies for customer that is reducing their capacity and whether a <br /> refund or credit should be provided to the customer. HDR generally discourages refunds capacity <br /> reductions. As can be seen,the issue of redevelopment is more complex than a new customer <br /> connecting to the system for the first time. <br /> This task will review the issue of redevelopment and the appropriate and equitable methods of <br /> assessment for expansion of capacity(change in use). There is no single correct method for the <br /> assessment of these incremental charges, but HDR believes that there are assessment methods <br /> which are more equitable and appropriate than others. In particular, the use of meter capacities <br /> for water and sewer is a simple and straightforward approach to assess changes in capacity use <br /> and expansion. Depending upon the results of Task 4,this task will review the redevelopment <br /> issue from the perspective of the City's existing assessment methods versus the meter capacity <br /> approach. This issue is particularly relevant to commercial retail building which may continually <br /> and constantly have changes in the end-use (tenet use) of a building location. <br /> Deliverables from Task 5— <br /> • Review of the issue of change in use/expansion of capacity requirements <br /> • Review the different methods of valuation and assessment of capacity under a change in <br /> use/redevelopment scenario <br /> • Discuss the advantages and disadvantages of the valuation and assessment methods. <br /> • Provide a recommended method for valuing and assessing redevelopment, particularly for <br /> commercial customers/buildings. <br /> Page A-4 <br />