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Since modification of the rates being recommended will entail modifying the back end of both the meter reading software and the utility billing software, staff recommends any rate modifications go into effect on March 1, 2019. That will give staff time to address the programming requirements needed to incorporate the modifications as well as test the meter reading and billing for a few months before going live with the changes. Along with the typical user rates and charges, reclaimed rates, sludge rates, and miscellaneous service charges were reviewed as well. Miscellaneous charges are event -based charges that are designed to recover costs of providing the related service. Many of these charges needed to be updated in order to ensure the cost of providing the service was being reimbursed through the related charge. Other charges are considered obsolete, and it is recommended to omit them from the revised rate schedule. A general service call fee shall be assessed to service calls not related to issues caused by IRCDUS. Examples may include investigation of low pressure or a leak that turns out to be in the customer's line from the meter to their house. Costs of such calls include the average labor and vehicle cost necessary to respond to the location. The average cost of such a call is $122.00. Although the actual cost of providing this service is $122.00, staff believes providing such services is part of doing business as a utility and thus recommends setting this fee at $35.00. Much like general service calls, Turn Off and Turn on Charges should recoup the average labor and vehicle costs affiliated with the service. Turn off and Turn on charges may be voluntary or involuntary. For an involuntary turn off (due to non-payment) and subsequent turn on, the consultant calculated the fee required to offset expenses related to that service as $182.00. For a customer requested disconnect or reconnect, the fee was calculated to be $103.00. However, staff is recommending a rate of $75.00 for these services. Water and low-pressure sewer service connection charges are associated with the tap and installation of the service lateral from an existing line to the property's point of connection. Costs include the average labor cost, vehicles and/or equipment as applicable, and materials. Based on current costs, the water service connection for lines sized under two inches are $2,785 for water and $2,895 for sewer. Connections two inches and larger will be unique to each situation, and an actual cost plus overhead approach is recommended. Line extension charges are designed to recover costs of the distribution lines located in front of the property served. Since the cost of these lines differs greatly from one area to the next depending on line size, depth of the line, soil conditions, etc., it is recommended that an actual cost plus overhead method be used rather than a fixed cost per linear foot. A septage and sludge rate is required in order to offset costs affiliated with the acceptance of sewage and sludge from various sources for treatment. Septage and sludge are highly concentrated forms of wastewater, and thus the treatment of such is beyond the average treatment cost of wastewater treatment. Costs for this service were derived from the sludge division's operating budget. The rate necessary to recover such costs is consistent with the current per wet ton rate of $15.00. Reclaimed water fees are perhaps one of the more complicated fees for a utility. Idealistically, it seems logical to treat reclaimed water as a retail commodity, as a substitute for potable water, to be used for irrigation. However, the factors influencing that concept are many. First, there is not a widespread distribution system to move the reclaimed water from the disposal site to the individual users. Second, to construct one would be cost prohibitive compared to the little revenue that would be generated from the commodity. Therefore, a far more effective disposal method is to target large scale users such as 267 Page 5 of 9