Laserfiche WebLink
3 <br /> In particular,water rate structures will address the following <br /> ❑ Equivalent flat rates and metered rates for the transition to full metering over a multi-year period(estimated <br /> mid 2012-2021) <br /> ❑ Sufficient cost recovery from the fixed charge component to maintain revenue stability as the City <br /> transitions to metered rates for all customers <br /> ❑ Elimination/reduction of consumption in base use <br /> ❑ Reduction/elimination of the final declining block charged to commercial/industrial customers <br /> Stormwater rate design will include a cursory review of emerging trends in stormwater rate methodology and <br /> recommendations for the City to consider,such as credit policies.FCS GROUP recently performed an impervious <br /> • <br /> surface area study for the City.That level of effort is not anticipated for this study. <br /> The budget provides for up to two(2)rate structure options for each utility. <br /> Task 8: Miscellaneous Charges Review <br /> Review existing miscellaneous utility charges,evaluate the appropriate level of those charges,and recommend <br /> revised and/or new charges to recover unique utility costs that are not applicable to all customers on the systems. <br /> Examples include,but are not limited to turn on/turn off fees;plan review/inspection fees;late fees,etc. • <br /> We will compile the list of identified charges and determine the key driver of costs to be recovered by each fee,such <br /> as staff labor time,materials,or policy,in order to select the appropriate analytical method for calculating the <br /> charge. For primarily labor-based fees,determine a fully-loaded cost per productive labor hour at the City.Circulate <br /> a questionnaire to appropriate City staff members to estimate the average amount of time or range of time spent on <br /> each fee-related service.Compute the average full cost of providing each service.For primarily materials-based fees, <br /> work with City staff to obtain estimates on costs incurred to provide the service.Apply any associated labor time <br /> involved in the service,and compute the average full cost of each service.For policy-based fees that seek to modify <br /> behavior,work with City staff to define intent of the fee and past success or otherwise in implementing the fee. <br /> Calculate fees accordingly. <br /> Task 9:Rate Model Development <br /> Develop user-friendly electronic rate models for each utility in Excel 2007 format to enable City staff to calculate <br /> future utility rates.The model will be structured to include unique modules to provide for Source Document Inputs; <br /> Study Assumptions(growth rates,inflation factors,debt terms,policy choices,etc.);Revenue Requirements;Cost of <br /> Service;Rate Design;Customer Bill Impacts;and Tables and Graphics.We will tailor input parameters cons, stent <br /> with the City's budget categories,billings system data,plant asset data,proposed customer classes,and so on.The <br /> model will be flexible and stable enough to perform sensitivity analyses for various inputs and scenario development. <br /> Conduct a half-day training session with City staff to demonstrate model operations and outputs.Provide electronic <br /> copies of the models. <br /> Task 10:Meetings&Presentations <br /> Prepare materials and attend the following meetings to review interim findings,obtain policy direction,and present <br /> draft and final study results.In addition to the kick-off meeting described in Task 1,the following review meetings <br /> are anticipated: <br /> ❑ Up to two(2)meetings with City staff to review interim finding and receive policy direction. <br /> ❑ Up to two(2)meetings with the City Council to present study results and recommendations. <br /> Task 11:Documentation <br /> Prepare/submit a study report summarizing major assumptions,findings and study recommendations for each utility. <br /> The supporting spreadsheet analyses for each utility will be included as technical appendices. <br /> Task 12:Project Administration/Management <br /> Perform miscellaneous project set up activities,work paper documentation,internal scheduling/workload planning, <br /> invoicing,ongoing client correspondence,and other miscellaneous administrative/project management activities <br /> throughout the study - - <br /> CONTINGENCY TASKS • <br /> Task 13:Additional Meetings <br /> Attend up to two(2)additional meetings with other Stakeholder groups as might be requested.The budget assumes <br /> Page 13 <br /> (Form Approved by City Attorney's Office November 1,2009) <br /> 38 <br />