Agmt22 HF&H Consultants,LLC - Laserfiche WebLink

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REV: 08-25-2022 RL Consultant shall value existing water and sewer infrastructure taking into consideration the following: •Recovery of costs borne by rate payers to maintain reliability of the existing system. Replacement cost including and excluding depreciation. •Retired and outstanding debt service. •Debt-funded facilities with outstanding debt service. •Recovery of costs borne by developers to provide capacity for growth, if any. •Construction work in progress and capital reserves. Consultant shall also review future facilities in the City’s water and sewer capital programs to determine the portions that are related to existing and future customers. Determine Units of Capacity Consultant shall determine the units of capacity per connection by equivalent meter units for water connections and equivalent dwelling units for sewer connections. Consultant shall evaluate that declines in flow per connections reflect the capacity requirements of growth going forward and the amount of capacity provided by the facilities. Calculate Water, Recycled Water, and Sewer Capacity Charges Consultant shall integrate the information compiled from Task 3b into a single model for calculating the capacity, facilities, and connection fees for new connections. The model shall be built to identify the impact of changing various key assumptions on the proposed capacity charges (i.e., sensitivity analysis). Typical key assumptions include timing of buildout completion, buildout capacity, including or excluding depreciation from the asset valuation, etc. Calculate Other Miscellaneous Fees Consultant shall calculate miscellaneous fees. To calculate these fees, Consultant shall develop a draft model that derives average hourly rates (wages and benefits) for each employee type. Working with this tabulation and the City’s budget, Consultant shall add columns for allocating personnel in order to determine how much support overhead costs (e.g., IT, HR) to add to the City’s personnel who provide the services. Each staff type shall be allocated between the support and operations categories; these allocations will be verified by the Public Works Director or their designee(s). The ratio of the direct labor costs (salaries and benefits) for support staff to operations staff shall be used as the overhead factor to determine the fully burdened hourly rates. The model shall include a worksheet in which the fees and charges are derived. For each fee and charge, the appropriate staff shall be identified, and estimates of the time associated with each staff person shall be made. In cases where there are multiple staff in the same staff position, an average of the hourly rates for that position shall be used. The cost to provide each service shall be calculated by multiplying each staff person’s fully burdened hourly rate times the corresponding hours to conduct the service, plus materials costs. ATTY/AGR.2022.318/HF&H Consultants, LLC (Page 20 of 27)