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<br />EXHIBIT A <br /> <br />Agency Shared-Cost Calculations for Billing and Collection of Sewer Service Charges <br /> <br />The following outline is a numerical and narrative description of the shared-cost calculations for <br />Billing and Collection of sewer service charges for any agency. It is for illustrative purposes only and <br />does not represent any particular agency charges. The schedule summarizing the share of Billing and <br />Collection expenses for the "Agency" follows the narrative. The Billing and Collection expenses come <br />from Collection, Customer Service and Meter Reading Activities, and they are allocated based on each <br />agency's share of revenues collected, share of bills issued, and share of meters read by the District. <br /> <br /> <br />CALCULATION <br /> <br />DEFINITION <br />Share of Fixed Asset Replacement <br /> <br />Customer Information System (CIS) Replacement <br />Cost per District account of $39.24 <br /> <br /> <br /> <br />multiplied by <br /> <br /> <br />Agency's participatory share of account services, of <br />33.33 percent if 1 of 3 types on each account, or 50.00 <br />percent if 1 of 2 types on each account <br /> <br />multiplied by <br /> <br />Total Number of Agency accounts in new CIS to equal <br />Agency’s share of District’s CIS Replacement Cost. <br /> <br /> <br /> <br />The CIS Replacement Cost per District account <br />represents the portion of District’s full cost to <br />implement the Collections, Customer Services, and <br />Meter Reading functions in the new CIS installed in <br />September 2011 divided by 404,348 total District <br />accounts converted into the new system. <br /> <br /> <br />An account may receive District Water, District <br />Wastewater, and Agency services. The resulting Cost <br />per Agency account is $13.08 if the Agency service is <br />1 of 3 types, or $19.62 if 1 of 2 types of services per <br />account. <br /> <br />Total Number of Agency accounts within District’s <br />service area that are set-up for Agency sewer service. <br />Share of Collections <br /> <br />Annual Agency Revenue collected for "Agency" of <br />$600,000 is <br /> <br />divided by the <br /> <br />Annual District Revenue collected of$200,000,000 to <br />equal .003. <br /> <br />This factor is multiplied by <br /> <br />Annual District Collection expenses of$3,000,000 to <br />equal "Agency's" share of Collection expenses totaling <br />$9,000. <br /> <br /> <br /> <br />Annual Agency Revenue collected is the yearly <br />amount of sewage revenue invoiced on each bill <br />relating to the agency. <br /> <br /> <br />Annual District Revenue collected is the yearly <br />amount of District water and District sewage treatment <br />and agency revenue invoiced on each District water <br />bill. <br /> <br />Annual District Collection expenses are defined as <br />Salaries and Employee Benefits, Services and <br />Supplies, and Fixed Assets directly charged to <br />Collections during the Year. In addition to the direct <br />charges, an overhead amount is charged based on <br />Total Collection Salary and Employee Benefit <br /> 9