NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

Browse Search

,~ qtr! ~a~'~1~ EFLAND SEDER SYS~"EN~ Proposal for Rate Study for Small Wastewater Collection Utility PROJECT APPROACH AND TIMELINE Project Understanduag Since 1987, C)range County, Noah. Carolina ~"County"} has awned and operated a wastewater collection system for a small, utility serving approximately 240 custonaexs in Efland, Noah Carolina ~"Efland System"~. wastewater collected in the Efland System is conveyed to the Town of 1-~llsborough, North. Carolina ~"`own"} fog i~eatment and disposal The Ffland Syste~a consists p~ma~ily of ~esident~ customers; however, service is provided to a select number of commercial and industrial accounts. 'fie Efland System generates average monthly wastewater flows of 1.5 won gallons, including inflow and infiltration. The County is in the regulatory review process of expanding the Eflaaad System to serve 54-75 additional customers. The Eflan.d System's wastewater rates have ,remained unchanged since they were fast established in 1987. All customers pay a minimum charge of X15.74 which includes the fast 3,404 gallops based on water usage. Customers using above 3,444 gallons are then assessed a volumetric rate of X4.54 per 1,440 gallons of water usage. The County has requested proposals from certified consultants to conduct a wastewater Rate and Financial Planning Study ~"Study"} for the Efland System. Recently, the County determined that the cost tv operate the Efland System exceeded the amount of revenues being collected by approximately 14D,044 per year. 'T`his revenue shortfall is being subsidized currently by transfers from. the General Fund and the County is interested in evaluating the impact of adjusting rates to provide for aself-sustaining operation. ~ However, a significant portion of the customers that receive service from the Efland System are classified by the County as low-i~n.co~.e. As such, an important aspect of tb.is Study wi~1 be to evaluate the potential impact on customers while considering rate affordability pricing objectives. Scope of work The scope of work described below is based upon our review of the County's Request for Proposal #513D ~"RAP"} and our extensive experience in completing wastewater cost of service and rate studies for numerous other utilli.:des. 'I`bis approach has been tailored tv address the specific objectives and cvncem.s identified ~. the RFP, while still maintaining thane elements that we believe axe essential for completing a successful. comprehensive wastewater rate study. The County's RFP listed several objectives which the consultant will. be required to address, at a minimum, as part of the scope of work for the Study. Uur proposed scope of work and work plan, which is provided below, incorporates each of the items requested by the County. TASS .: Project Iniria~ion and Management we believe that the execution of a productive kickoff meeting with the County is the most effective way to begin a project of this nature. The goals fox this meeting include: Providing a forum to finalize the work plan and schedule with the County; Ensuring that we have an understanding of the overall goals of the Study; and Reviewing the data needs for the project ONSULTANTS, jNI C 5