Orange County NC Website
u ~ <br />EFLAND SEWER SYSTEM <br />Proposal for Rate Study for Small Wastewater Collection Utility <br />PROJECT APPROACH AND TIMELINE <br />Project Understanding <br />Since 1987, Orange County, North Carolina ("County' has owned and operated a wastewater collection <br />system for a small utility serving approximately 200 customers in Efland, North Carolina ("Efland System'. <br />Wastewater collected in the Efland System is conveyed to the Town of Hillsborough, North. Carolina <br />("Town") for treatment and disposal The Efland System consists primarily of residential customers; <br />however, service is provided to a select number of commercial and industrial accounts. The Efland System <br />generates average monthly wastewater flows of 1.5 .million gallons, including inflow and infiltration. The <br />County is in the regulatory review process of expanding the Efland System to serve 50-75 additional <br />customers. <br />The Efland System's wastewater rates have remained unchanged since they were .first established in 1987. All <br />customers pap a minimum charge of $15.70 which includes the first 3,000 gallons based on water usage. <br />Customers using above 3,000 gallons are then assessed a volumetric rate of X4.50 per 1,000 gallons of water <br />usage. <br />The County has requested proposals from certified consultants to conduct a Wastewater Rate and Financial <br />Planning Study ("Study") for the Efland System. Recently, the County determined that the cost to operate <br />the Efland System exceeded the amount of revenues being collected by approximately X100,000 per year. <br />This revenue shortfall is being subsidized currently by transfers from the General Fund and the County is <br />interested in evaluating the impact of adjusting rates to provide for aself-sustaining operation. However, a <br />significant portion of the customers that receive service from the Efland System are classified by the County <br />as low-income. As such, an important aspect of this Study will be to evaluate the potential impact on <br />customers while considering rate affordability pricing objectives. <br />Scope of Work <br />The scope of work described below is based upon our review of the County's Request for Proposal #5130 <br />("RFP") and our extensive experience in completing wastewater cost of service and rate studies for numerous <br />other utilities. This approach has been tailored to address the specific objectives and concerns identified in <br />the RFP, while still maintaining those elements that we believe are essential fox completing a successful <br />comprehensive wastewater rate study. The County's RFP listed several objectives which the consultant will <br />be required to address, at a minimum, as part of the scope of work for the Study. Our proposed scope of <br />work and work plan, which is provided below, incorporates each of the items requested by the County. <br />TASg 1: Project Initiation and Management <br />We believe that the execution of a productive kick-off meeting with the County is the most effective way to <br />begin a project of this nature. The goals for this meeting include: <br />• Providing a forum to finalize the work plan and schedule with the County; <br />• Ensuring that we have an understanding of the overall goals of the Study; and <br />• Reviewing the data needs for the project <br />RAFTELIS FINANCIAL5 <br />CONSULTANTS, INC. <br />