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EXHIBIT A CRAIG R. LAWSON Utility Management Consultant August 21, 2007 Mr. Stephen S. Cusenza, P.E. Utility Planning Manager City of Pleasanton 3333 Busch Road Pleasanton, California 94566-0802 subject: Proposal to Design a Local Sewer Connection Fee Study Dear Mr. Cusenza: In accordance with your request today, presented herein is my proposal to design a sewer connection fee study for the City of Pleasanton's sanitary sewer conveyance and pumping facilities (local). It is anticipated that consulting services will also be required for the design of sensitivity analyses of the critical variables that affect fee design and to assist the City with study implementation. Over the past 30 years, I have conducted hundreds of such studies for over fifty municipal wastewater, water, and recycled water utilities and have found working with the City of Pleasanton since 1977 on rate, fee and financing studies for the City's sewer and water utilities to be interesting and challenging. The benefits to the City of having an independent consultant conduct this work are fee equity, revenue adequacy and fee stability over time done by a well- known expert. Proposed Scope of Services Craig R. Lawson will prepare local sewer connection fee recommendations based on current and future capital needs and growth projections developed by City staff. The fees will be based on costs to be borne by new development within the context of Goverrunent Code Section 66000 et. Seq. and AB 1600. This may include a review of staff program requirements analysis, development assumptions and financing alternatives. The report will include projected costs and revenue through the anticipated build out period, but will also include funding to cover any costs that exceed the anticipated build out period as a result of either debt repayment or other long term obligations that exceed the build out period. The local sewer connection fee study will be designed to be able to analyze alternative schedules of projects and growth projections. The study will contain analyses of pay-as-you-go financing with minimal debt as well as economic cycling and maximum and minimum reserves; the latter are relatively new concepts designed by Craig R. Lawson (and contained in studies over the past eight years for LAVWMA, DSRSD, Livermore, and Zone 7). The City's Wastewater Regulations will be revised as required to incorporate the proposed connection fees. The technical analyses 623 West Myrick Court • Clayton, CA 94517-1648 • (925) 672-2690 • FAX: 672-7690 Financial & Economic Planning • Rate & Fee Design • Cost of Service Analyses