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

Home

9.H.a City of Prescott, Arizona Solid Waste Utility Rate Study Solid Waste Rate Study Statement of Understanding Raftelis and Municipal Solid Waste (MSW) Consultants, as a sub -consultant to Raftelis for this study, propose to complete a comprehensive review and update of the City of Prescott (City) solid waste utility financial plan, rates and fees. The proposed study will include the following major elements: • Update of the solid waste utility financial plan over a 10-year study period of fiscal year (FY) 2018-19 through FY 2027-28, • Complete a customer class cost -of -service for a single test -year, • Evaluate up to three (3) rate alternatives and/or scenarios, and • Issue report and completed presentations of study findings and recommendations. The objectives of this solid waste rate study are to: • Confirm the City's solid waste rate -making objectives. • Identify the nexus between the City's cost -of -service and the individual rates the City charges customers for those services. • Analyze the solid waste enterprise fund's projected revenues and expenditures, and project its total revenue requirements over a 10-year study period or planning horizon. • Prepare a financial plan that will enable the City to budget and plan for its operating and capital costs. • Design rates and develop a multi -year rate adjustment plan that will achieve the enterprise fund's revenue requirement and meet the City's rate -making policy objectives. • Assist the City in communicating the proposed rate multi -year adjustment plan to the City Council. Study findings and recommendations will be documented within a draft and final study reports and presented to City Council during up to two meetings and/or public hearings. The following details the proposed scope of services to complete a comprehensive solid waste financial plan, cost - of -service and rate study. Proposed rates for service are anticipated to be effective January 1" of each year, but the initial rate adjustment in anticipated for 2019 may be effective in February due to the timing of the study and Arizona Revised Statute (ARS) adoption and implementation requirements. Raftelis and MSW will take reasonable efforts in study staffing and execution to maintain a January 1, 2019 effective date. Attachment: Raftelis Scope of Work -Prescott DIF and Rate Study (2124 : Rate & Fee Study Contract with Raftelis) RAFTELIS Solid Waste Rate Study - Attachment Page 1 Packet Pg. 259