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as Dt ~Ri~ ~ ~r~~ ft EFLAND SEWER SYS~'EI~ Proposal for Rafe 5~udy for Small Wastewater Collegian U~ili~y the fast f ve years of ope~adons cans~dex~,g the ~~ial. unit agate as set forth in the ~n~er-Local ,Agreement and agreed upon by the eight ~8} original member entities. PROJECT DETAINS B~rmmgham wa~e~r Woxks Board, Alabama Cast of Service Study RFC conducted a cost of service study fox the Birmingham water Works and Sewex Board Rate Study the `Board"}. The Board provides retail water service to over 2D4,004 customers, retail. Band Feas~bilEty Rate Model sewex service to over 3,OOD customers, and raw water to over 100 industxial. accounts. RSE Process Thxough a cost of service study, RFC developed a rate stabilization and equalization ~"RSE"} Affordability Miscellaneous Fees process. As a part of a legal settlement wig the Cite of Birmingham, the Board agreed to come under regulation by the .Alabama Public Service Commission ~"PSC"}. C)ther utilities REFERENCE re red b the Alabama PSC have devely ed RSE rocesses to sixn ~ rate fain.. while Mr. Mac Underwood ~ y p p p~Y g General Manager the existing ~RSE's are based on rate of xeturn metxics, the Board's RSE had to be developed Birmingham Water Works Board to ensure debt service coverage requirements are satisfied. The RSE process defines when a ~~Og First Avenue North Birmingham, At. 352 rate increase or decrease is warranted. Once the Alabama PSC accepts the RSE, the Board's Phone; (2~5} Z~4.44~3 rates will increase without the Board being forced to enact the increase. By dying so, rate issues should become depoliticized. As part of the cost of service study, RFC also reviewed the methodology used to develop miscellaneous fees such as tap connection fees, xeconnecti,on fee, and bad order plumbing, and provided recomtnendadons fox xevising the fee calculations. In addition, RFC examined potentiaal affordability programs. RFC has also recently begun a project to develop system. development charges fox the Board. Uver the past four years, RFC has assisted the Board in preparing official. statements for three bond offerings in the amounts of ~3D0 million, X84 million, and X90 amill%on. RFC developed a program of rate increases necessary to pay the debt service and meet the bond requirements, assisted in preparing a presentation for the rating agencies, and RFC personnel paxti.apated in meetings with the rating agencies. PROJECT DETAINS Charlotte-Mecklenburg Utilities, North Carolina Cast of Service Study RFC originally assisted Charlotte~Nlecklenburg Utilities ~"Utilities"} in developing a water Rate Study and sewer financial planning and rate model and related user manual The rate model has Rata Model been used to update rates and assist with Utilities' financial planning. The model focused on REFERENCE providing long-team rates, management infoxmat~.on., and graphic representations of :model Mr. Doug Bean ou ut:. Since the o ' ' al model develo anent, RFC has rovided assistance in u datin and D~ractar ~' ~ p p p g Charlotte Mecklenburg Utilities refining the rate model on an annual basis. Recently, RFC completed a comprehensive 51gD Brookshire Boulevard revision to the methodology used tv calculate certain industrial. waste charges. As part of Charlatta, Nark Carolina X821 fi Phone. ~~o4j 399-~3Z1 this project; Rl~'C examined many different approaches, calculated the costs and impacts of implementing a new approach, and participated in meetings with Utilities' Advisory Council and the public to discuss the new recommended approach. Additionally, RFC has assisted Utilities in performing risk analysis on its revenue stream. Following years of abnormally dry ~......~ weather, the Charlotte area has received above average rainfall, As a result, revenues ONSULTANTS, NC.16