RES 89508 - Laserfiche WebLink

Ms. Susan Rossi November 28, 1989 Page three City staff and the City Council. Draft review with key staff will be conducted via meetings and review of various results with particular emphasis on the inventory. Study Schedule The data gathering task for the study should begin as soon as possible and the City's Water Master Plan should also be supplied to the Consultant. Work will commence upon study authorization and be completed in March 1990 or ninety days after the receipt of the study data, whichever is later. Compensation It is estimated that funding in a not-to-exceed amount of $8,000 will be needed for this study. Charges will be based on the hourly rate of $95.00, which includes all normal expenses and fifteen copies of the final report. Water Rate Study The purpose of the Water Rate Study is to develop proposed and alternative water rate structures which are designed to recover operation and maintenance expenses and replacement reserve accruals from existing customers commensurate with the cost of providing water service. It will contain analyses of historical and projected use and costs together with a detailed cost of service analysis using the base-extra capacity allocation method. Alternative rate structures will include, but will not necessarily be limited to, the trade-offs between service charges and quantity charges, discussions of ascending and descending block rates, the development of uniform and nonuniform quantity charges for the customer classes, rates charged by other nearby water utilities, maintaining stable bimonthly service charges for a given period of time (two or four years) and whether to adjust the quantity charge annually in conjunction with annual Zone 7 water rate reviews. The proposed study period is calendar years 1990 through 1993; note that calendar years are used because Zone 7 has historically adjusted rates charged the City each January 1; further note that it may be desirable to update this study in late 1990 prior to conducting the biennial wastewater user charge study in early 1991 depending on the adequacy of the water consumption records obtained and because of the past drought; that is, it may be desirable to perform a cursory update with "normal water use" records. A proposed scope of services, study schedule and compensation are presented in the subsections which follow.