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sewer connection fees, if an increase is needed, using a "pay as you go" or alternative financing method. History of the City's Existing Sewer Connection Fee The current local sewer connection fee is $500 per each single-family residence or DUE. One DUE corresponds to the average wastewater flow from one single-family home connection, and represents a flow of 220 gallons per day. All other residential and commercial developments are assessed a connection fee based on the number of DUE's or portions thereof, to be discharged to the City's sewage system. The current sewer connection fee of $500 was ratified by the City Council at its meeting held on January 29, 1992. DISCUSSION Selection Procedure Staff recently undertook a consultant selection process for an update to the City's local sewer user fee. All of the consultants that submitted proposals for this work also perform sewer connection fee studies. Staff was able to use these proposals to select a qualified consultant for the recommended sewer connection fee study. Staff is recommending the award of contract to Craig R. Lawson, Utility Management Consultant, to perform the analysis and update of the local sewer connection fee. Mr. Lawson has considerable qualifications and experience in performing similar studies in the wastewater, water, and solid waste areas. He has more than 30 years of experience conducting connection fee studies for municipal utilities in northern California. As such, he is considered a specialist in the utility connection fee and rate setting fields. He has also worked successfully with City staff performing many past connection fee and rate analyses for Pleasanton's water/wastewater systems. He is familiar with the City's rate setting requirements and has had first hand involvement in analyzing and setting DSRSD's regional sewer rates, connection fees and the City's local sewer rates. In addition, staff believes there will be considerable cost savings and minimal staff time required by the City with Mr. Lawson performing the recommended update. Project Budget The negotiated scope of work is attached to this staff report and the cost is a not-to- exceed amount of $24,800. Funding for the project will come from the existing CIP No. 972020, Sewer Connection Fee Update ($15,000), and a requested appropriation of $10,000 from the City's Sewer Expansion Fund. The monthly consultant invoices for the work will be based upon an hourly fee basis for the time and materials expended during the period. Page3of4