Amendment to PSA - HJ Umbaugh & Assoc. - Water Utility Cost Service Study

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SOUTH BEND, INDIANA DEPARTMENT OF PUBLIC WORKS GENERAL SERVICE AGREEMENT — AUGUST 19 2014 EXHIBIT A-3 (Cont'd.) Services Provided — Municipal Water Utility J. Provide alternative estimates of future annual revenue requirements for consideration by the Client. Article II. Cost of Service Stud A. Obtain information from Client officials, consulting engineers and available records, invoices, etc. to determine the classification of Utility plant as necessary for Cost of Service analyses. B. Compile a detailed study of all customer billings for twelve (12) months' usage of the test year for each rate schedule currently in effect in order to determine billing demands and customer usage characteristics. C. Confer with the Superintendent, consulting engineers and other consultants to the Client, as necessary, to determine maximum hourly demand characteristics, maximum daily demand characteristics, fire flow requirements, meter equivalence ratios and other data for each customer classification in order to determine the cost responsibility for each class of service. D. Confer with the Superintendent, consulting engineers and other consultants to the Client, as necessary, to arrive at the allocation of the costs of Utility plant operating expenses and other revenue requirements to cost functions (i.e. base costs, extra capacity, customer, administrative and direct functions). B. Confer with the Superintendent, consulting engineers and other consultants to the Client, as necessary, to arrive at the allocation of each functional cost to each of the present customer classifications in relation to each customer class's responsibility for those costs. F. Compare the test year revenues under the current schedule of rates with the projected annual costs of providing service for each of the present customer classifications. G. Recommend the consolidation of certain present rate classifications where appropriate. H. Recommend alternative methods of revising rates and charges which are projected to produce revenues approximately equal to the determinable costs of providing service to the customers being billed from said rates. Prepare schedules comparing typical monthly billings under the present and proposed rates of the Client with the rates being charged in other communities in the surrounding area. J, Prepare and furnish an accounting report of findings and recommendations concerning the finances of the Client and a new schedule of rates and charges.