RES 89508 - Laserfiche WebLink

CRAIG R. LAWSON Utility Management Consultant November 28, 1989 Ms. Susan Rossi Director of Finance City of Pleasanton P.O. Box 520 Pleasanton, California 94566 Subject: Proposal - Water System Rate, Fee and Financing Studies Dear Ms. Rossi: In accordance with your request and our meeting with key City of Pleasanton (City) staff, proposals are presented herein to conduct rate, fee and financing studies for the City's water system. As we discussed, though each study can be conducted concurrently or nonconcurrently, the rate and fee studies are dependent in part on the results of the financing study, and the fee study is dependent in part on the results of the rate study; it is recommended that the studies be conducted concurrently thus encouraging the efficient use of City staff and Consultant time. The proposals presented herein are based in part on the authorization of all three studies with two reports to be prepared. The first report would contain a "Water System Replacement and Improvement Financing Study." The second report would contain a "Water Rate and Fee Study." Proposed scope of services for each of the three studies are presented herein. Water System Replacement and Improvement Financing Study The primary purpose of this study is to develop a pay-as-you-go financing plan for the future replacement of all City water facilities. This financing plan will be designed to promote rate equity, revenue adequacy and rate stability over time and it will be funded primarily via water rate revenue. The secondary purpose of this study is to also fund proposed water system improvements via water rate revenue. Note that water system improvements are those proposed capital improvement projects which will serve the existing water system; that is, system deficiencies are corrected and/or standards of service are improved. Water system expansion projects are those proposed expansion projects which serve new applicants for water service and which are normally funded via water connection fees. Individual projects may be both improvement and expansion related and are allocated accordingly in this study. Developer contributed facilities are not a part of this study except that such facilities are added to the replacement inventory as they are contributed to the City. Alternative methods and levels of funding will be analyzed in this study; these will include pay-as-you-go financing with 1000 Minert Road , Walnut Creek · California , 94598 , (415)930-6620 Financial & Economic Planning' · Rate & Fee Desi~In * Cost of Service Analyses :