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I I I 37. ATTACHMENT A PROPOSED HDR SCOPE OF SERVICES BASELINE VALUATION OF MAXWELL WATER SUPPLY CORPORATION FOR THE CITY OF SAN MARCOS General Understandina HDR understands the City's deSIre to submIt a proposal to Maxwell Water Supply Corporation ("Maxwell") to purchase / acquire assets of the Corporation. To assist the City in preparing a proposal, the City is requesting a "basehne" valuation of Maxwell. The baseline valuatIon will serve as an mitial technIcal reference pomt for the CIty to develop a viable offer. Scope of Services Task 1 - Data Gathering & Compilation HDR will submIt and coordmate a request for information to Maxwell. The informatIon request w111 include but not limited to the following in preparation of the baseline valuation: . Map of service area boundary (please note certIfied area). . Map and physical description of system facilities · Detailed Summary of the Corporation Assets and Surface and/or Groundwater rights o Original cost of assets, date assets put in place and eXIsting rate of depreciatIon o Distinguish assets which were contributed · Financial Statements (last 3 years) · Summary of outstanding indebtedness, including payment schedule · LISt of Any Other Significant Outstandmg Liabihties (if FinancIal Statements are not specIfic) · FY06 Budget and Proposed FY07 Budget . Water Rate and Fee Schedule . Water Production and ConsumptIon Report o 3 years of hIstory of water produced/purchased and sold, and unaccounted for water. · List of known upcoming capital Improvement projects HDR will review and summarize the above submItted information and WIll request a kIck off meetmg to begin the process and methodology of the baseline valuatIon. Task 2 - Valuation HDR w111 utilize two methods in preparing the baseline valuation: 1) original cost less accumulated depreciation and 2) cash-flow valuatIon. In consultation with CIty staff, HDR w111 assist and prOVIde a "reconnaIssance-level" on-site condItIon ofrepair assessment ofthe Maxwell's facilitIes by a profeSSIOnal engineer. This will be accomplished by a review of readily-available O&M information and a one day field VISIt to mspect visible facilities. Preliminary results of the baseline valuation and on-site conditions assessment will be presented at a client workshop. Based upon comments and direction from the clIent workshop, a final technIcal memorandum will be prepared and will be m the format which can be presented to Maxwell as the basis of an offer. Proposed HDR Scope of Services Baseline Valuation of Maxwell Water Supply Corporation Iil\ - 0 -