RES 89508 - Laserfiche WebLink

Ms. Susan Rossi November 28, 1989 Page five Compensation It is estimated that funding in a not-to-exceed amount of $10,000 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 Connection Fee Study The purpose of the Water Connection Fee Study is to design a water connection fee schedule based on the cost of service which will fund all costs of future expansion of the City's water system. Note that a water connection fee is not to be confused with facilities contributed directly to the City by developers but is instead a fee designed to fund expansion projects constructed for new systems users by the City. A proposed scope of services, study schedule and compensation are presented below: Scope of Services 1. Costs of proposed expansion projects, construction schedules, and estimated growth will be summarized from the Water Replacement and Improvement Financing Study and the City's Water Master Plan. 2. Water connection fees will be designed using the three methods commonly employed by water utilities. These three methods include the system buy-in, marginal cost pricing and value-of-service methods. 3. A connection fee schedule by meter size will be recommended for adoption by the City based on the cost of service analysis, equity between existing and new water system customers, and perceptions of ability to pay criteria. 4. An expansion cash flow analysis will be developed based on the foregoing to demonstrate the adequacy of the connection fee recommendations and hence the expansion financing plan. 5. 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 connection fees and to conduct study updates more efficiently. 6. Changes will be proposed for the City's water code as necessary to implement the study.