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• � Attachement A <br /> Section 1 <br /> Sco e of Services <br /> p <br /> 1.1 Introduction <br /> The City of Decatur (City) has requested technical assistance in performing a <br /> comprehensive water rate study. The scope of services for this proposal includes a <br /> comprehensive review of the City's water rates, general facility charges and other ', <br /> miscellaneous fees. It has been assumed that each of these components of the rate <br /> study will be developed simultaneously. <br /> This section of the proposal will present the scope of services for the comprehensive <br /> water rate study. The scope of services will discuss the general methodology and <br /> approach to be used by Economic and Engineering Services, Inc. (EES) to prepare <br /> the study. The following methodology and approach has been developed given the <br /> limited information provided by the City. <br /> EES proposes to establish fair and equitable water rates for the City's customers by <br /> performing a comprehensive water rate study. The review of the City's water rates <br /> is composed of three interrelated analyses. They are a revenue requirement <br /> analysis, a cost of service analysis and the design of rates. In summary form, a <br /> revenue requirement analysis reviews the various sources and applications of funds <br /> for the utility and determines the overall level of adjustment required to rates. <br /> Next, the cost of service study allocates the revenue requirements to each class of <br /> service in a fair and equitable manner. Finally, the rate design portion of the <br /> analysis considers the various methods of collecting the necessary rate revenues. <br /> The study will be developed on an IBM compatible microcomputer, using the <br /> spreadsheet program Lotus 1-2-3; Version 5. This is the program and version <br /> specified within the agreement with the City. The spreadsheet models to be <br /> developed will be specifically designed for the City's system of accounts and needs. <br /> At the end of this engagement, the City will receive the various data disks <br /> associated with this project. As an optional task to this scope of service, the City <br /> may receive a user's manual for the programs and a training session in the use of <br /> each of the rate models. <br /> 1.2 Initial Project Meeting <br /> An initial project meeting is always recommended before beginning any project of <br /> this magnitude. The initial project meeting is often critical to the total success of <br /> the engagement. At the meeting, all participants in the project meet to discuss <br /> Scope of Services 1-1 <br />