Orange County NC Website
~3 <br />II 9 <br />~~~t Ci~~~~~, <br />EFLAND SEWER SYSTEM <br />Proposal for Rate Study for Small Wastewater Collection Utility <br />facilitating a close working relationship between the County and RFC staff and will be <br />accountable for meeting the project schedule, budget, and technical requirements of the project <br />Highly qualified staff. <br />Sufficient support resources to ensure timely completion. <br />Local resources to quickly and effectively respond to the County's requirements. <br />B. Client contrz7l and j»njectguidance Tvill be enru~d thvnugh: <br />• Adoption of procedures for regular and open communication between the project team <br />members and County staff. <br />• Regular progress reports and the project manager's use of RFC's internal project accounting <br />and management system. These reports will also identify potential problems, challenges, and <br />solutions. <br />• Coordination of project activities between RFC and County staff. <br />• Optional assistance in developing and presenting project recommendations. <br />Initiation of the Quality Assurance/Quality Control Process <br />The quality assurance/quality control ("QA/QC") process ensures that all RFC work is accurate and of the <br />highest quality. The QA/QC process begins at the outset of the project when the Project Manager and <br />QA/QC reviewer review the work plan and scope. The QA/QC reviewer is present at all internal project <br />meetings and works closely with both the Project Manager and the lead consultant This person examines <br />project deliverables for consistency and accuracy and verifies that the finanaal model functions correctly and <br />is developed using sound rate making principles and standard industry practice. The reviewer also verifies <br />that that the project report is thorough, accurate, and consistent with the high quality standards of RFC. We <br />have found that a formal QA/QC process helps RFC provide clients with solutions that meet or exceed the <br />high standards that our clients have come to expect <br />TASK 2: Development of Rate Model to Project Revenues and Expenditures <br />The next step is to develop rates based on the Efland System's existing rate structure, as well as any viable <br />modifications to the existing rate structure identified during discussions with County staff during Task 1. At <br />the heart of any successful rate study is the computer model that is used to develop revenue requirements and <br />perform operational and capital financial planning; perform cost distribution, classification and allocation; and <br />calculate rates. As a result of our experience in performing hundreds of cost of service and rate studies, we <br />have determined that while standardized rate models may be inexpensive to create, they do not provide the <br />flexibility needed to address each utility's unique needs, pricing objectives, and compatibility with existing <br />financial systems. For that reason, RFC creates customized cost of service and rate models based on <br />standardized approaches for each of its rate study projects which allows us to tailor the model to meet each <br />client's specific needs. <br />Cost of service and rate models developed by RFC typically consist of three modules: a financial planning <br />module, a cost of service module and a rate calculation module. The financial planning module is used to <br />develop and project revenue requirements over the planning period and incorporates both direct and indirect <br />operational costs, capital costs (including pap-as-you-go capital and debt service), as well as rate revenues and <br />ONSULTANTS, NC? <br />