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EXHIBIT "A" SCOPE OF SERVICES Consultant will complete the following tasks to support the City in its 2019 solid waste/recycling rate setting process: Task 1. Project Initiation In order to fully understand the City's desire for rate setting support, Consultant will meet with City staff and discuss the key issues the City would like addressed in this process. From this meeting, Consultant will modify preliminary work plan to include the key issues. Task 2. Obtain Cost, Rate and Current Customer Account Data Consultant will contact Recology or SBWMA to obtain: 1) actual year-to-date revenues; 2) current rates; and, 3) current customer account data by type and level of service (i.e., residential customers with one 32 -gallon can, two 32 -gallon cans, etc.; and, commercial customers with one 2 -yard bin serviced 2 times per week, one 4 -yard bin serviced 3 times per week, etc.). Consultant will utilize the current account and rate data to project the City's overall revenue to be generated by the City's current solid waste rates. Consultant will compare the projected revenue to projected costs (based on Recology's preliminary 2019 revenue requirement and projected 2019 SBWMA disposal/processing expenses) to determine the necessary overall rate increase that will generate sufficient revenue to cover costs. Task 3. Update Rate Model Based on the information gathered in Task 2 and utilizing the template prepared for the SBWMA, Consultant will prepare a multi-year rate model (through 2023) to project anticipated revenues and expenditures. Consultant will incorporate any changes to City fees or other anticipated future costs. This task will address the overall revenue requirement (commercial and residential combined) for each year. If there is a significant rate adjustment required for 2018, Consultant will identify the specific causes (i.e., lower -than -anticipated revenue due to a decline in subscription levels, higher -than -anticipated collection and/or disposal costs, etc.) and determine the reasonableness of the cause based on Consultant's industry knowledge. Task 4. Develop Cost of Service Studies for City Fees Consultant will prepare a detailed analysis of costs for Streets Maintenance and Franchise Fees attributable to the collection of solid waste and diversion materials. Consultant will prepare for and discuss with City staff via a conference call to discuss the City's existing data and methodology to allocate costs to the solid waste system within the City. Page 9 of 13 REV: 12-12-17 MI ATTY/AGR.2017.288/HF&H Consultants, LLC - Solid Waste/Recycle Rates