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<br /> <br />Prior Utility Rate Analysis Experience: <br /> <br />Within the last six months, Ehlers and Associates has completed or is in the process of completing <br />utility rate studies for the following communities: <br /> <br />. City of St. Louis Park, MN <br />. City of Medina, MN <br />. City of Edina, MN <br />. City of Chanhassen, MN <br />. City of Elk River, MN <br />. City of Brooklyn Park, MN <br />. City of Taylor's Falls, MN <br />. City of Chisholm, MN <br />. City of Carver, MN <br />. City of Lake Elmo, MN <br /> <br />Please see the references page at the end of this Proposal. <br /> <br />More and more communities are turning to Ehlers to analyze and assist staff in determining the <br />appropriate levels of water, sewer and storm sewer rates and charges. Jon North and Mark Ruff would <br />be the primary financial advisors working with the City on this project. Jessica Cook, Financial <br />Advisor and Elizabeth Diaz, CPA (Inactive), Financial Analyst, would be primarily responsible for the <br />analytical portion of the City of Arden Hills Utility Rate Analysis. Meeting client's needs and tailoring <br />the product to serve those needs is a core belief at Ehlers and Associates. We will work to meet the <br />needs of the City of Arden Hills. <br /> <br />Ehlers Approach <br /> <br />Ehlers staff has developed a template for completing analyses of this type. The template is sufficiently <br />flexible enough to tailor it to meet the needs and the special circumstances of the City of Arden Hills. <br />It is also available to be transmitted electronically to staff at the completion of the Analysis for staff <br />use, if desired. <br /> <br />The analysis will be conducted in the following two steps. <br /> <br />Step 1. <br /> <br />Complete rate study and financial plan <br />This step will focus on options for establishing equitable water and sanitary sewer rates for <br />residential and commercial customers. It will also review Sewer Availability Charges <br />(SAC) and Water Availability Charges (WAC) charges, other revenue sources, and the <br />current and projected expenses for the water and sanitary sewer systems. Finally, it will <br />include reviewing and developing recommendations for the utility. These recommendations <br />will address cash reserve balances, project funding, and capital replacement, as necessary <br />and appropriate. <br /> <br />City of Arden Hills, Utility Rate Study Proposal <br /> <br />January 2, 2008 <br />Page 2 <br />