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<br />Consulting Services Agreement between City of San Leandro and Last revised August 15, 2024 <br />Bartle Wells Associates for Sewer Fee Rate Study Page 6 of 6 <br />account for the latest legal understanding of Proposition 218. For this task, we will derive proposed <br />rates based on a defensible cost of service methodology. A key component of this task includes <br />allocating operating, maintenance, capital, and debt service expenses for cost recovery from <br />appropriate rate components. <br /> <br />Wastewater rates will be based on cost allocations to wastewater flow and strength (as measured by <br />BOD and SS) to develop underlying unit costs for flow, BOD and SS. These uni t costs are then applied <br />to the wastewater discharge characteristics of each customer class to ensure rates reflect the proportional <br />cost of providing service to each class. <br /> <br />5. Update Permit and Inspection Fees <br />Provide an analysis of the permit and inspection fees related to the various customer types. <br /> <br />6. Develop Preliminary & Final Rate Recommendations with City Input <br />Based on evaluation of rate structure alternatives and the overall level of rate increases identified in the <br />financial plans, develop draft rate recommendations for City input. The recommendations may include a <br />multi-year phase in of both overall rate increases and proposed rate structure adjustments to help <br />mitigate the annual impact on ratepayers. Revise recommendations based on input received. Final rate <br />recommendations will be designed to: <br />a. fund the costs of providing service, including operating, capital, and debt service funding needs <br />b. be fair and equitable to all customers, <br />c. provide a prudent balance of conservation incentive and revenue stabil ity, <br />d. be easy to understand and administer, and <br />e. comply with the substantive requirements of Proposition 218, <br /> <br />It is important to recognize that some rate design objectives e.g., revenue stability and conservation <br />incentives, can be in competition and it is crucial to find rates which strike a balance between competing <br />objectives that is right for the City. <br /> <br />7. Evaluate Rate Impacts on a Range of City Customers <br />Calculate the impacts of each rate alternative on a range of City customers. Discuss additional rate <br />structure adjustments that may reduce the impact on certain customers if warranted. <br /> <br /> <br /> <br />Evaluation of current utility rates and potential rate structure modifications <br />Regional utility rate surveys <br />Analysis of historical consumption and utility billing data <br />Cost of service analysis to support equitable and legally defensible rates <br />Development of draft wastewater rate alternatives for City evaluation and input <br />Meet with City to discuss findings and alternatives, gain input, and develop recommendations <br />Phase 3 Deliverables Include: <br />Docusign Envelope ID: 1C386315-7640-416F-B286-F4A8443FDDE6