Agmt 2002 Lawson_Craig R - Laserfiche WebLink

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1-1. Inventory and Replacement Cost Analysis: Update the 50-year computer model of the City's inventory that will be used to identify the estimated replacement cost of the various collection and treatment facilities for each fiscal year. Installation dates, original costs, and anticipated useful lives of all facilities acquired since the July 2001 Study together with actual and anticipated rates of inflation will be incorporated in the computer model. 1-2. Cash Flow Analysis and Alternative Funding Levels: Update the 50-year computer model of likely cash flow requirements of the replacement program. Estimated annual replacement costs, current system use, and anticipated rates of interest, inflation, and growth will be incorporated in the computer model in order to analyze alternative funding levels and to identify the best apparent funding level. Identify replacement reserve accruals for fiscal years 2003/04 and 2004/05 based on the best apparent funding level. 1-3. Update Procedures for City: Review the procedures being used by City staff to continually accumulate the data required to maintain the integrity of the replacement program over time. 1-4. Report Preparation: The results of the study will be documented in a comprehensive report designed for intense public scrutiny. An unbound copy and eleven bound copies of the report will be provided to the City. The study will also be presented to the City Council. Task 2. Wastewater User Charge and Connection Fee Study In order to ensure rate equity and revenue adequacy, it is desirable to update wastewater user charge and connection fee systems biennially. Changes in use and costs significantly alter the cost of service basis over time that can lead to inadequate revenues and/or significant inequities between users and user classes. Therefore, the primary purpose of this task is to update the City's Wastewater User Charge and Connection Fee Study dated July 25, 2001 to incorporate past and anticipated changes in wastewater system costs and use. In addition, the computer model developed for the July 25, 2001 Study will be fully updated in order to conduct sensitivity analyses of the critical variables which affect the level of rates and fees and to conduct future updates. Alternative cost allocation philosophies will be investigated with respect to their compatibility with overall City policies and objectives. A final report will be prepared which will provide the basis for setting wastewater user charges and connection fees for fiscal years 2003/04 and 2004/05. The elements of work to be performed by the consultant in accomplishing this task are described in more detail below: EXHIBIT A Page 2 of 5 CSA for Craig R.Lawson June 2002