Cost of Service Study Update Professional Services

The Vendor is required to provide to conduct a comprehensive potable and recycled water rate cost of service study.
- The intent of the study is to independently assess and evaluate the District’s existing water rates and charges and provide recommendations.
- This study will require the selected firm to perform a comprehensive review of the District’s current rates and rate structure, including collecting the necessary customer usage and financial data, reviewing and projecting revenue requirements, developing cost-of-service based rate alternatives, and providing recommendations for the District’s review.
- Firm will also review the planned expenditures for the water utility, including operations and maintenance costs and the capital improvement program. In cooperation with the District, the selected firm will provide leadership in conducting the study and preparing recommendations.
- The consultant will bring these options to the Board for preliminary direction.
- For tiered rates, the consultant will review the number of tiers and whether they are still justified. This will include review of peaking factors. The cost of service study will include an explanation for why the chosen rate structure is recommended.
- The consultant will perform a standard fee analysis and develop cost-based water user rates for a three-year period through a comprehensive cost of service and rate design study process that is consistent with industry practice in the State
- A legally defensible recommendation and methodology for how to approach customer leak adjustments in light of the full incorporation of pass-through charges
- Definitions for each customer class including which class is to be used for fire line usage
- An affordability analysis for single family residential customers in our service area. The current rates use property taxes to offset the tier 1 charge.
- The rate model shall contain functionality to support the development of the rates and charges as described in the Cost of Service Analysis.