Murraysmith Inc. 4/12/2021 - Laserfiche WebLink

Firm Headquarters Established in 1988 •••> FCS GROUP Redmond Town Center Washington 1425.867.1802 Solutions-Oriented Consulting75251661'Ave NE,Ste D-215 Oregon 1503.841.6543 Redmond,Washngton 98052 Colorado 1719.284.9168 CITY OF EVERETT 2023 COMPREHENSIVE SEWER PLAN FINANCIAL PLAN (CHAPTER 8) FCS GROUP proposes this task plan to support the City of Everett's (City) consulting engineer Murraysmith with its update of the 2023 Comprehensive Sewer Plan(Plan). Key deliverables include a revenue requirement analysis and financial chapter(Chapter 8). FCS GROUP will also conduct a financial strategy workshop with City staff to review the results and recommendations of this study. A multi-year rate increase ordinance has already been adopted by the City Council, this analysis will fit the Capital Improvement Plan (CIP)— including the Water Pollution Control Facility (WPCF),the Port Gardner Storage Facility (PGSF), and collection system—within the constraints of the funding generated from the current rate ordinance. Some capital projects may need to be reduced in scope or delayed to fit the project costs within the funding constraints of the rate ordinance. Murraysmith will be developing a CIP prioritization analysis to support this financial exercise. TASK PLAN Task 1 I Project Initiation Meeting Attend a kickoff meeting with key staff from the City and Murraysmith to review the project, methodology,timelines, expectations, and desired outcomes. This meeting has been budgeted assuming it will be conducted via remote session. Task 2 I Data Collection Submit a written request for the data needed to complete the study. Review and validate data. Task 3 I Revenue Requirement Financial Plan The revenue requirement is defined as the total amount of rate revenue needed to meet the utility's financial obligations, including capital, operating, and policy-driven commitments. Typically,the result of the revenue requirement analysis would be the recommended percentage rate adjustments, as applied to the current rate structure, needed to fund the stated capital improvement program identified in the Plan. However, in this case, the City has already adopted a multi-year rate ordinance based on a 2020 rate study. As a result, the FCS GROUP study will overlay the CIP to be developed by Murraysmith onto the available funding resulting from the City's multi-year rate ordinance. The forecast period for the FCS GROUP study will scale to align with the multi-year rate ordinance or the CIP, whichever is longer.