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9.H.a <br />City of Prescott, Arizona <br />Water, Wastewater and Water Resources Utility Development Impact Fees and Associated Documents <br />TASK 3 <br />Identify Capacity Needs and Cost <br />This task will include incorporating the capital needs over the 10-year period as documented within the water and <br />wastewater LUA, master plan update, and capital improvement plan (CIP) to develop the IIP associated with DIFs <br />as required by ARS §9-463.05. Raftelis will work with City staff and review relevant data to determine DIF eligible <br />capital projects as well as those related to replacement and other deferred requirements benefiting existing <br />development and those tied to demands placed on the system from new growth in proportion to such demands. We <br />will review cost estimates for developed capital improvements within the CIP and work with City staff to finalize <br />for those to be included within the IIP. Furthermore, revenues dedicated for the repayment of existing or future <br />facilities included within the IIP will be identified within this task and incorporated within the Task 6 calculation <br />and Task 7 cash flow analysis. <br />TASK 4 <br />Determine Need for and Calculate Credits to be Applied <br />Against Capital Costs <br />This task includes a review of applicable development agreements requiring DIF credit and/or reimbursement as <br />well as development of typical on -site facility requirements for new development to avoid "double payment <br />situations" by excluding such facilities from DIF recovery. The City has entered into a variety of development <br />agreements and some may include requirements for credit of DIFs and/or reimbursement of oversized on -site <br />facilities and/or completion of off -site facilities benefiting other developments that will be recognized within the <br />IIP per ARS §9-463.05. <br />Raftelis will summarize the DIF requirements of the City -provided relevant development agreements which will <br />identify the respective requirements within a single memorandum. <br />TASK 5 <br />Discussion of Preliminary Methodologies and Policy Options <br />Through the completion of previous tasks, a compilation of the service level tables and supporting documentation <br />will be finalized within this task. Raftelis will provide draft service level tables and projected demand for services by <br />service area for each DIF category for review by City staff. An on -site meeting is proposed within Task 9 to occur <br />in conjunction with this task as a key "check -in" with City staff regarding the overall study prior to calculation <br />DIFs (Task 6) and/or completion of cash flow analysis (Task 7). <br />TASK 6 <br />Complete Development Fee Methodologies and Calculations <br />This task includes the update of water, wastewater, and water resource DIFs reflecting the analysis and <br />recommendations developed through previous tasks. Raftelis will calculate DIFs for each category and/or multiple <br />service areas within each category as necessary. The calculations will involve two key components. The value of <br />current and/or future facilities benefit new development, (including financing costs) identified through the previous <br />tasks will be divided by the service level capacity of the same facilities to serve new development. We anticipate <br />that the meter size -based fee assessment approach will be maintained, but we will evaluate with City staff the <br />Attachment: Raftelis Scope of Work -Prescott DIF and Rate Study (2124 : Rate & Fee Study Contract with Raftelis) <br />RAFTELIS <br />Water, Wastewater and Water Resource Utility DIF Study and Associated Documents - Attachment Pa€ <br />Packet Pg. 239 <br />