CC - Agendas - City Council - REGULAR - 8/14/2018

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9.H.a City of Prescott, Arizona Water and Wastewater Rate Study Wastewater rate structure alternatives will be based on the results of the discussions with City staff and City Council during Task 1. We will evaluate the existing wastewater rate structure and up to two (2) alternative wastewater rate structures. We will develop test -year rates for the selected rate structure alternatives and annual rates for a multi -year period for up to three (3) years. We are anticipating the focus of the alternatives to be evaluations of the base and volume rates for each customer class. Changes to customer class rates stem from changes in the overall revenue requirement, class cost -of -service, and changes to the structure. The combination of these changes can have significant impact on customer's bills. In our bill impact analysis, we will generate monthly bills at each level of usage comparing the cumulative impact from the change in revenue requirement, class cost -of -service and any changes in the rate structure to the bills under existing rates. For each alternative will create bill comparison for typical monthly usage. We will also develop a customer bill impact analysis. The bill impact analysis shows the dollar change the percentage change between the alternative structures compared to customer bills under existing rate structures. This task uses detailed billing data from Task 2 to complete this task. Raftelis will also develop a typical bill survey and compare against bills for the same 10 peer wastewater utilities selected during the Task 1 project initiation meeting. The typical water and wastewater bills will be combined. TASK 5 Preparation of Water and Wastewater Rate Study Report Raftelis will prepare a draft water and wastewater rate study report which documents the overall study findings, recommendations and material assumptions and considerations including detailed calculations supporting the proposed rate alternatives. Raftelis will prepare a single version of the draft report for review by City staff. The draft report will be provided in an electronic format for staff review and we will incorporate mutually agreed upon changes and provide to the City up to 20 bound copies as well as a .pdf version of the final study report. TASK 6 Presentations / Meetings Presentations to refine and communicate interim and final study recommendations as well as onsite project meetings are proposed to be completed throughout the study. We propose the following to complete on -site project meetings with City staff throughout the project. • Project kick-off meeting to affirm study objectives, gather data and City input, fmalize study schedule, and provide the foundation for the study • Project workshop to review and refine interim study results and is most useful to be completed in person. To augment on -site meetings, phone calls and/or GoToMeetings will be completed as necessary to support the requirements of the subsequent tasks. Raftelis will present overall study findings and recommendations to City Council. We will attend up to two City Council meetings and/or public hearings as may be necessary. Raftelis will be responsible for preparation of meeting and presentation materials. Attachment: Raftelis Scope of Work -Prescott DIF and Rate Study (2124 : Rate & Fee Study Contract with Raftelis) RAFTEL1S Water and Wastewater Utility Rate Study - Attachment Page 6 Packet Pg. 255