Agenda - 10-07-2008 - 7c - Laserfiche WebLink

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^ 511 East Boulevard Charlotte • North Carolina • 28203 R,4FTELI5. FINANCIAL Ct7NSULTANT5;, INC. September 24, 2008 Mr. R Kevin Lindley, PE, MCE Engineering Specialist Orange County 129 East King Street Hillsborough, North Carolina 27278 Dear Kevin: ^ Phone 704.373.1199 Fax 704.373.1113 ^ www.raftelis.com Raftelis Financial Consultants, Inc. ("RFC's is pleased to submit this letter report summarizing the results of our wastewater rate study ("rate study' for Orange County, North Carolina ("County"). The purpose of the rate study was to determine the financial. and customer impacts of recovering the annual revenue requirements of the Efland System which is owned and operated by the County. The financial and customex impacts are determined based on three alternative rate scenarios. In addition, this letter report recommends an alternative rate structure we believe is more equitable for low volume customers. Finally, this letter report concludes by ideniifping alternative strategies the County may want to consider in addressing rate affordability for low-income customers. Since 1987, the County has owned and operated a wastewater collection system for a small utility serving approximately 200 customers in Efland, North Carolina (the "Efland System'. Wastewater collected in the Efland System is conveyed to the Town of Hillsborough, NC ("Town' for treatment and disposal. The Efland System consists primarily of residential customers; however, service is provided to a select number of commercial and industrial accounts. The Eflarid System generates averages monthly wastewater flows of 1.5 million gallons, including inflow and infiltration ("I&I'~. The County is in the regulatory review process of expanding the Efland System to provide the capacity to serve add between 75 to 100 customexs over then next few years. Current Rate Structure The Efland System's wastewater rates have remained unchanged since they were first established in 1987. All customers pap a monthly minimum charge of X15.20 which includes the first 3,000 gallons based on metered water usage. Customers using above 3,000 gallons per month are then assessed a volumetric rate of X4.50 per 1,000 gallons of water usage. The table on the following page presents the monthly sewer bills for customers with water usage ranging from 0 to $,000 gallons of water per month.