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_I SEP IM11 BOOK As offered and agreed upon at the August 27 meeting, CH2M HILL will perform these tasks at no cost to the County. We will complete the technical memorandum by September 20, 1991, and look forward to presenting the results to you at that time. Based on our discussions at the August 27 meeting, it is our understanding that the evaluation and update will not address the basic concepts and methods used in the fee and rate study. In addition to these tasks listed above, we will conduct a preliminary analysis of the adequacy of the water and wastewater rates scheduled to be in effect in Fiscal Year 1992 to meet the utility system's revenue requirements. It is our goal to have a letter to you on this matter prior to your September 5, 1991, budget hearing. To ensure objectivity in our analysis, we will conduct this effort using independent staff who have not been previously involved on this project. The team will include a senior economist experienced in water and wastewater utility rate analysis. This staff will transition into the study within the next 7 days. We will be in contact with your staff by the end of next week. Please call me if you have any questions or further concerns on tms matter. I want to assure you that we are firmly committed to providing quality service to Indian River County. We have enjoyed our work for you and it is our goal to win and maintain your confidence. Sincerely, CH2M HILL G ory T Mtegional ice sidenManager Commissioner Scurlock noted that he obviously has some concern about this matter in that he has been liaison with Utilities, and he advised that since the error of 754 in the base facility charge came to light, he has worked with Mr. Chandler and Mr. Baird and identified 6 other potential errors. He believed that the impact fee needs to be rethought - the fire hydrant fee at this point seems to be not consistent with what our fee is - the septage sludge fee is in there at 1/2 the revenue stream that CDM's master plan and septage/sludge facility study proposed to us - he cannot identify any number in there in terms -of revenue from grease - and the last item relates to the $13.00 surcharge on the Sea Oaks facility acquisition. He, OMB Director Baird, and Administrator Chandler, have worked many hours on this, and he shares some of the embarrassment that Mr. Chandler has in having to have a rethinking of this. We pay good money to our consultants for their services, and he did not think it is fair for our staff and himself to have to identify these kind of problems. This is not something staff has fallen down on. In fact, the error only came to light as a result of staff 16