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HazenNls. Carrie Copier Scope of Services: The dynamic rate analysis model for North Olmsted will reflect changing labor, consumables and O&M costs, when combined with your budgeting for debt service, capital improvements, repair and replacement and other stipulated costs. A determination of cost of operation for the wastewater treatment will be identified. We will provide these costs to produce sewer rates as cost per 1,000 cubic feet. The rate study will also include evaluating the per bill/user charge, minimum rate charge, residential rates verses commercial/industrial rate and tap fee charges. As previously mentioned, we will also evaluate and determine the rate for changing from a quarterly billing cycle to a monthly billing cycle. We will build into the model different outputs that will show cost allocations for expenditures in the overall sewer system. The model will also provide charts to indicate relative cost allocations and provide a summary report for management use. We will build a spreadsheet system in Excel that would enable wastewater treatment facility inputs along with data inputs from finance and billing regarding income based on water usage. Additionally, the model and charts will show the average percent usage between user classes and average percent of sewer rates paid for by all the various usage classes based on water meter readings. This will help to determine if your rates are as equitable and fair as possible between user classes. The model will also provide a five (5) year financial projection which will help you safeguard and plan for the future of your system. We will provide for data inputs on a yearly basis to allow the sewer rates to adjust for changing consumables and/or projected estimates. Worksheets will be developed and incorporated as inputs to the model. The accuracy of the Rate Study will depend greatly on the input from you and your staff regarding your chart of accounts (expenditures or statement of accounts) for the most recent complete calendar year, water meter readings (usage) and budget line items along with input from finance as to how best provide for monthly income, debt service and overall model review. User charge ordinances including minimum and unit charge rates will need to be provided as well as any future rate changes which are planned. The more data that is available electronically will reduce the input time and ultimately the completion of the evaluation. In addition, any debt service payments on existing loans will need to be provided and the year each existing loan will sunset. A detailed list of items needed for input into the model will be provided to the City prior to initiating the Rate Analysis. The updated rate analysis will include a brief written narrative to accompany the updated rate model. Electronic format and hard copies of the updated rate analysis will be provided to the City. Hazen and Sawyer will meet with you and other key City personnel to finalize and review the rate analysis model and narrative summary. If necessary Hazen and Sawyer will attend one (1) committee meeting and one (1) council meeting to present the findings of the rate analysis. Schedule: The date of commencement for the Rate Analysis shall be the signed date of the contract and be completed within six (6) months of the contract execution. Please note the schedule is dependent on obtaining the necessary information/data from the City in a timely manner. Compensation: The terms for compensation of labor and expenses are outlined in the enclosed Attachment A, which is considered part of this letter agreement. The total not to exceed amount for this task is $46,500.00. Fees for services beyond the scope included herein and above the not to exceed amount must be approved in writing by the City prior to being conducted. Page ? of 3 hazenandsawyer.com