NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

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3 nyyntP °r D ~ ra ~~i` ~ +~ 1r ~ ~? ,~ . r a~fh ~aY°~~~ Count y of Orange Department of Purchasing & Cent ral Services Pamela K. J ones, Director County of Orange, NC Request for Proposals #5130 Rate Study for Small Wastewater Collection Utility February 5, zDD7 PURPQSE: orange County was given your name and the name of your company by staff of the orange Water and Sewer Authority €oWASA} as potential utility rate study consultant for a small wastewater collective utility owned by Orange County. The purpose of this RFP is tv obtain a statement of qualifications and proposal far developing acost-of-servicelrate study for a small, orange Countywowned wastewater collection utility system. BACKGROUND: This utility, generally known as the Efland Sewer System, currently provides sewer service to approximately 200 customers in the Efland area, a small, unincorporated community lying along Interstate 85140 in central Qrange County: Most of the customers are single family residential users, but the system does provide service to three businesses two industrial customers and a self service car wash}, two churches, an elementary school and aCounty-owned community center, none of which generates more than 4000 gallons per day of wastewater flow. The entire system generates an average of approximately 1,DDD,DDD gallons of wastewater flaw per month, exclusive of ground water infiltration and inflow which has been known to increase flaw by apprvxirnately 5o°/n}, An expansion of that system, currently in the regulatory review process, is expected to provide sewer service to another 5075 customers, including several mare businesses and churches. The Efland Sewer System is unusual in a number of ways, beginning with system operation. While Orange County actually owns the system, the County has no staff that deals with the utility, other than the County Engineer and his assistant. They provide general system oversight and planning. Routine and repair system maintenance is performed under contract by 4WASA or its sub-contactors. Wastewater treatment is provided by the Town of Hillsborough wastewater is conveyed via pumping station and force vain sane five miles to Hillsborough's wastewater collection system}, Billing for system customer accounts is performed under contract by the 4rangeYAlamanceWoter System, a private non-profit water utility that provides water service to the area and to most of the sewer system customers hand thus bill collecting leverage, though a few customers still rely on wells}. The orange County Board of Commissioners set the utility rates for the Efland Sewer System, though the Board has not seen fit to increase the rates since they were first set in 1987. The current cost of operating the system now exceeds system rate-based income by approximately $~ OD,DDD per year. The sho~fall is met by funding transfers from the County's General Fund. The County Commissioners have historically been reluctant to raise rates because the existing customer base is comprised of low income, elderly and minority households. However, of late, a number of much higher income households have been added to the existing system and the proposed system expansion also promises tv serve a higher income community. Accordingly, the Board has determined that the time has come to bring sewer rates in line with the cost of operating the system. The Board has also P.4. Box 8181 * X29 East King Street * I-lillsborough, Nort h Carolina 27'278 Telephone: Area Code 919 245-2651 Fax: 644-3DD1 E~ mai I ~ Dcannel I~co.or ange.nc.us