Utility Rate Study Services

The vendor is required to provide utility rate study report which recommends an economically and legally supportable set of fees to offset the costs of utility service demands related to development.
•    The city's utility ordinances, estimate the projected population and level of service required through 2031, taking possible property annexations into consideration, and recommend a fee schedule to support the projected
•    The consultant will redevelop rate structures for each utility that are sufficient to meet current and future revenue requirements including projected operating costs, capital costs, debt service costs and coverages, and working capital reserve requirements. 
•    The consultant shall prepare a revenue sufficiency report (estimate of future revenues and revenue requirements) for ten (10) fiscal years from the base year of each study, with an emphasis on the first five (5) years for rate setting purposes.
•    The consultant will provide a cost of service and rate proportionality for each utility for residential and commercial customers. 
•    The consultant will also review impact and connection fee charges and make recommendations on updates to reflect true costs to provide service. 
•    The consultant shall also make recommendations on capital reserve and fund balance policies for each utility.
o    The water and wastewater funds would include: 1) evaluating tiers and alternative structures to water and wastewater rates to generate revenues; 2) consider increased capital costs resulting from construction cost inflation and ensure rates and impact and connection fees are suitable to meet current and future ongoing capital needs; 3) consider additional capital investments and debt cover, including future system resilience and hardening; 4) include financial policy recommendations for fund balance targets, emergency repair reserves, debt and other factors; 5) review deposit amounts and applicability.
•    Identify any legal consideration for the current and recommended fee schedule including the minimum requirements for a legally defensible fee system. 
•    Fee recommendation should be allocated between residential, multi-family and commercial customer base, if appropriate.
•    Prepare a fee comparison report between the recommended fees and fees of surrounding municipal and county governments. 
•    Meet with the city manager and staff to discuss the recommendations and review the report prior to issuance of the final report. 
•    Issue final report. 
•    Assist the city in preparation of revised fee ordinances.
•    City commission at public hearings and meetings (one city commission workshop, two city commission meetings, and a minimum of two staff meetings) to present the report and proposed ordinance and to explain any findings and recommendations.

- Contract Period/Term: 1 year