Water and Sewer Rate Study

The scope of work for the water and sewer rate study is: 1. Meet or confer with selected City representatives as needed to address this scope of work. 2. Review current utility financial guidelines. 3. Review current water and sewer fund finances, including capital improvement plans, fee schedules, debt schedules, and existing rate structure and model. 4. Review current wholesale customer agreements. 5. Develop a general familiarity with City’s water and sewer system customer usage trends. 6. Provide analysis and recommendations for utility financial guidelines. 7. Provide analysis and recommendations for the various components of the current retail rate structure. 8. Include at least one recommended alternate rate structure for residential retail customers. 9. For both recommendations, the recommended retail rate structures must: a. Be simple and easy to understand, administer and implement b. Be fair and equitable to all users c. Be defensible d. Not result in a decrease of revenue e. Adequately fund current and known future costs f. Be compatible with the City’s billing system (BS&A) g. Support a monthly billing cycle if the City desires to move to this frequency h. Acknowledge any known or pending regulatory changes that may affect the City’s rates or rate structure 10. Provide analysis and recommendations for wholesale customer rate calculations. The City’s preference is that all wholesale customers utilize the same utility basis of rate methodology, including Ottawa County which currently does not. 11. For all recommendations, the Consultant must: a. Discuss the pros and cons of each option presented b. Provide and justify one overall retail and one wholesale rate structure recommendation, including data to support the recommendation c. Describe and quantify impacts to residential, commercial and industrial retail customers, as well as any associated impacts or changes to wholesale customer rates d. Discuss the relevancy of the recommendations to current best practices 12. Based on the final retail and wholesale rate recommendations, develop a rate modeling tool that: a. Is user-friendly and easy to manage b. Uses Microsoft Excel c. Is flexible, allowing for dynamic updates and analysis d. Has the ability to forecast at least 20 years e. Provides a comprehensive financial planning and revenue requirement determination f. Allocates costs appropriately g. Develops rates according to the selected recommendation

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Plumbing, Common Work Results for Plumbing.