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<br />Exhibit "A" <br /> <br />SCOPE OF SERVICES <br /> <br />This section presents a proposed scope of services that Bartle Wells Associates believes will <br />form a sound basis for completing this assignment. BW A can work with the City to modify and <br />finalize a scope of services that meets all the City's objectives. Bartle Wells Associates will <br />provide the following consulting services working at all times in close cooperation with City <br />staff and its other consultants as directed. <br /> <br />Task 1- Revenue-Neutral Revision of Variable Water Rate Tiers <br />. Assist City in revising variable water rate tiers from absolute tiers (water purchased at <br />highest tier rate) to marginal rate tiers (water purchased in each successive rate tiers as use <br />rises). The City intends this to be a revenue-neutral adjustment. <br />. Assist in development and evaluation of variable water rate tier alternatives. <br />. Analyze impacts on various customer profiles. The overall adjustments will be designed to <br />be revenue-neutral. However, the impact may vary a bit between customers with different <br />usage profiles. <br />. Attend meetings with City staff and others, including the City Council's Utilities Committee, <br />as requested by City staff. Discuss findings, recommendations, and alternatives for <br />consideration and receive ongoing input. <br /> <br />Task 2 - Evaluate Options for Minimizing Impact on Low Income Ratepayers <br />. Evaluate options for reducing the financial impact of water rate increases on low income <br />ratepayers. This will include evaluation of implementing a low income discount and/or <br />potential modifications to the water rate structure to minimize the financial burden on <br />customers with low water use. <br />. Review low income discount programs of other cities and water/wastewater districts to <br />identify good practices and procedures. For agencies that have low income discount <br />programs, identify the level of participation. For example, it is possible that only half of <br />eligible customers may actually request a discount. <br />. Identify and evaluate low income discount program alternatives. Options include methods <br />for a) determining program eligibility, b) calculating and/or applying the discount, and <br />c) administering the program. <br />. If desired, a low income discount could also be applied to the City's sewer rates in which <br />case BW A would concurrently perform the same tasks for the sewer bill discount. It is also <br />possible to apply a discount to the entire utility bill. <br />. Evaluate the financial impact of potential utility discount programs. This will include <br />estimating the number of potential eligible accounts and the amount of revenue reduction due <br />to different discount levels. <br />. Identify and evaluate options for modifying the City's rate structure to benefit low water <br />users, if warranted. <br />. Assist City with modification of the water enterprise's guiding principals, as requested. The <br />City's guiding principals do not currently include guidance for determining the rate tier <br />amounts or breakpoints. For example, the City may want to include policy guidance for <br />setting the lifeline rate tier. Additionally, the City may want to consider adding language <br />regarding a low income discount program if such a program is adopted. <br /> <br />Agreement over $10K <br />City Attorney Approved Version 111803 <br /> <br />10 <br /> <br />T. <br />