NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

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1~ ~~r} ~x1N~i~ EFLAND SEWER SYSTEM Prapasal far Rate Study far Srr~all VIlastewa~er Collegian Utility STATFNIFl~T CJF SIG~I~~~ICAl~TC:~ Cast of Service and Pacing The goal of cost of service studies iS to develop rates and charges that best meet a utility's goals and objecdves RF'C has conducted 5a such projects in the last five yews and our personnel have conducted more than 604 dut~ag their careers. As a resnt of our experience with numerous uni~tie5, bath large and small, we have developed many different rate structures based on the needs and preferences of the utility anal/or its customers and stakeholders. RFC's typical methodology for conducting a rate study includes the following tasks: • Conceptual ~7esign - to identify the utility's objectives in order to ensure that we develop the most appropr~.te rates and rate structures. During this task, we work with the client to identify and priori~ze ab jegives such as rate equity and affordability, revenue sufficiency, conservation orientation, and rate stability. • .~7evelopment of a Rate Model -the model is the tool by which rates are calculated, and it allows far ongoing financial. planning and sensitivity analyses Fach rate model is custom built for the unity; however, we do have a project proven rate model template that we use as a basis far developing a utility's rate model. we develop models so that they may be manipulated and updated by utility staff. • Public outreach and Education - incorporates varying degrees of stakeholder/customer input throughout the study. Due to our extensive experience with cost of service and pricing studies, we ate very comfortable presenting results to a utility's governing body city council, board of commissioners, etc. Rate Survey RFC conducts the most comprehensive national water and wastewater rate survey. The A~.~1./Rl~'C tY~ater and 1Pa.~tewat~r Rats Survey ~"Survey"} is conducted every two years, with the most recent version completed in ~oa~. The Survey includes data on rates and charges as well as rate structures and other fees. As a result of conducting this survey, RFC has a large database ofrate-related information for unities across the country. we will. be able to use this data as needed to help the City develop rates and rate structures that are consistent with current industry trends. Affordability The challenge of addressing affordability concerns is complicated by the broad diversity of Situations, constraints and policy considetadons that must be addressed to provide ratepayer assistance. As discussed later in this proposal, RFC has the experience that the County w~. require in working to develop a rate structure to appropriately accommodate all in.come levels. RAFfELIS FINANCIAL4 CONSULTANTS, INC.