NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

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is ,~ •~,r# ~~i~~i~ EF~.AN~ SEVER SYSTEM Proposal for Rate Study for Small 1Na~~ewater Collection Utility Rate Affordability As noted previously, the County indicates in its R,FP that it is currently subsidizing the l~fland System by appro~.mately ~100,00o per year. The RFP also indicates that ~s shortfall in revenue is associated with the Board's decision to leave rates unchanged ~ ~fland since they were first established in 1957. The basis of the Board's decision not to increase rates relates directly to the scant number of existing customers that axe considered to be low-income. Although the County is antexested in the l~fland 5ystena. becoming self sufficient, it still wants to evaluate alternative strategies fox addressing rate affordability. Since there are so few customers in the ~flaand System, and since such a high percentage of these customers axe considered to be low income, the County will need to carefully balance the customer impacts of a self suffiaent operation with its desixe to provide xelief to disadvantaged customers. RFC ~ work closely with County staff to undexstand its objectives and goals for addressing rate affordability. Several objectives that will be considered include: • Defining the appropriate target customer group; • l~valuating program alternatxveS erg. life line rates, rate Vouchers, law-a.ncvme xates}, • Defaning the correct criteria far qualifying participants; • Assessing the feasibility of implementation; and • Understanding program casts, including risk. Care roust be take to ensure that affoxdability options axe penmuissible under state law. RFC will. work with the County's legal counsel to ensure affordab%lity recommendations are not in violation with. applicable regulations. TASK 5: Fx~.alize Rate NtodeX and Report The bnanci.~ plan~ung and rate development process will be described along with preliminaxy Nate recommendations in a draft report of findings and recommendations. This xeport ~ also include an executive su.~maxy highlighting the major issues and decisions, the results, findings and xecomxnendations. A comprehensive section on the rate design. assumptions and methodologies used to develop the user rate calculations and the f~ua.ancial. plan will be included. A preliminary version of the rate model will also be provided to the County for comment. Comments from the County will be incorporated into the final report and the rate model to be delivered to the County. TASK d. Presentation of Results ~t]prional~ At the County's request RFC can be available to present the results and recommendations of the Study to the Board and local stakeholders in a comprehensive, yet simplistic format Any comments at the presentation will. be documented and, if appropriate, will be incorporated into the rate model and report so the rate study report can be finalized. RAFTELIS FINANCIAL CONSULTANTS, INC.