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NewPoint Group onn(lccent Consultants Mr. Steven Bocian Page 6 February 23, 2012 In this survey we will show how the various City residential and commercial rates compare with neighboring jurisdiction rates. The survey will be used as a basis for comparison to prior rate surveys performed for the City. Additionally, the survey will be used to respond to potential questions, which may arise during the rate review process from City residents, and the City Council, regarding how City rates compare with other neighboring jurisdictions. Note that in our experience, these surveys are presented with the full caveat that other jurisdictions have differences in service levels, rate setting methods, historical rate treatments, facility costs, cross subsidies, economic circumstances, etc. These rate survey results thus typically are not used in isolation as a basis for determining the overall reasonableness of a jurisdiction's rates. Rather, in some cases, with appropriate qualifications, these surveys can be used to show generally how a jurisdiction compares with averages of other selected similar jurisdictions, at a given point in time. 6. Assist with Franchise Extension (Optional Task) A franchise extension has tremendous value to the franchisee and the City will need to weight the costs and benefits that such an extension entails. We will provide the City with feedback regarding the potential for an extension. We will review documents provided by PGS to the City related to this extension. We will develop a list of franchise extension issues and advantages specific to the City. A sample list of general franchise extension pros and cons, we have developed from our experience, is provided in Attachment C. 7. Prepare Report(Optional Task) In this task, we will complete a draft report with recommendations. We will provide copies of the draft report to City staff and PGS for their review and comment. We will review the draft report with City staff and resolve any remaining outstanding issues. We also will participate in meetings involving the City and PGS, as needed, to discuss the report contents and receive feedback/comments from PGS on the draft report. We will incorporate comments received from City staff and PGS into a final report. We will provide the City with a final report with recommendations. We will provide the City with a sufficient number of copies to distribute to City staff, PGS, and the City Council Members.