RES 89508 - Laserfiche WebLink

Ms. Susan Rossi November 28, 1989 Page four Scope of Services 1. Historical contributions to both average and peak water use by customer class will be analyzed, and water use characteristics will be projected for calendar years 1990, 1991 and 1992. Similar analyses will be conducted for water service meters adjusted for commonly used capacity factors. 2. Historical water system operation and maintenance expenses will be analyzed and then projected for the defined study period giving due consideration to the cost-influencing factors of inflation and anticipated growth in system use. The results of the Water System Replacement and Improvement Financing Study will be incorporated in projected water system revenue requirements; depending on the results of the latter study, alternative levels of revenue requirements may be developed. 3. A detailed cost of service study will be conducted to determine the cost of providing water service to the various customer classes based on their proportional use of the water system. The base-extra capacity method of cost allocation will be used in this study. 4. A computer model will be designed for the above tasks in order to conduct sensitivity analyses of the critical study variables which affect the level of water rates and to conduct future study updates more efficiently. 5. Changes will be proposed for the City's water code as necessary to implement the study. 6. The study will be documented in a final report designed for intense public scrutiny and will be presented to 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 implications of alternative rate structures. Study Schedule The data gathering task for the study should begin as soon as possible. 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.