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I 8 0 0 K PAGE BACKGROUND On May 13, 1997, the Board of County Commissioners instructed the Department of Utility Services staff to compile -a Request for Proposal (RFP) seeking professional services for the performance of a water/wastewater rate equity review and user charge study. On August 20, 1997 the RFP was advertised. Of the five responses, three were short-listed by the Utilities Advisory Committee on October 213, 1997. On November 5, 1997 the Board of County Commissioners selected Hartman & Associates, Inc. as the number one candidate for negotiations with County staff. On March 5, 1998 the Utilities Advisory Committee voted unanimously to finalize and proceed with the contract for services with Hartman & Associates, Inc. and bring the issue to the Board for action. The Board of County Commissioners approved execution of the professional services contract on April 7, 1998 and on April 22, 1998 County staff members and Hartman & Associates, Inc. held a kickoff meeting in the County Commission Chambers to establish a specific strategic plan of action. Hartman & Associates, Inc. then set to work developing the rate equity analysis, projection of fiscal requirements and cost allocation associated with the first phase of the study. On August 6, 1998 the consultants and County staff presented to the Utilities Advisory Committee the initial findings of the study, indicating minor rate inequities between certain residential subclasses and commercial rates. The Utilities Advisory Committee concurred with the initial findings and subsequent reviews further refined the equity analysis. On November 5, 1998 the staff presented it's finding regarding rate equity and received concurrence to proceed with Phase II of the rate study from the Utilities Advisory Committee. On January 7, 1999 a preliminary revised rate architecture was presented to the Utilities Advisory Committee and having received input, Utility staff and Hartman & Associates, Inc. proceeded to refine the developing rate model. Further input was received on February 4, 1999 and on March 4, 1999 the Utilities Advisory Committee voted to approve an equity enhancing scenario and asked the staff to bring the item forward to the Board of County Commissioners for review and approval. ADDITIONAL BACKGROUND The most recent user charge study was performed by CH2M Hill in 1991 using FY _ 1989/90 as the test year. Normally such charges are evaluated at a minimum of every five (5) years making this study, long overdue. Over the last year, the Utility staff and Advisory Committee have heard significant public input regarding user charge concerns. Chief among them are as follows: 1. "Base facility charges are too high. Because of this, customers do not have control over their bill creating a conservation dis-incentive." 2. "Small volume users are paying a disproportionately larger bill than the service they are receiving." 3. "The $2.00 billing charge for water and wastewater is too high. The charge is an irritant and should not be itemized separately on the monthly bill." APRIL 13, 1999 40