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

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9.H.a City of Prescott, Arizona Solid Waste Utility Rate Study Project Approach Raftelis and MSW Consultants will accomplish these rate -making objectives and conduct the solid waste rate study by performing the following tasks. We have not included a stand-alone task for project management -related activities and has integrated and distributed this critical component key to a successful project within the nine tasks proposed to be completed. Project management activities include working with City staff to establish the project objectives, develop and execute the project schedule, obtain necessary data, understand constraints, and execute the project efficiently and within the proposed schedule. TASK 1 Review Current Solid Waste Policy Objectives At our kickoff meeting, we will discuss the project's scope, schedule, and key issues. We will also discuss and prioritize the following rate -making policy objectives: • Generate adequate fund balance and cash reserves pursuant to the City's financial policies, and industry standards. • Comply with legal, regulatory and debt covenant requirements. • Achieve fairness and rate equity among customers and among customer classes. • Design rates that are simple and easy for ratepayers to understand. • Provide customers with an economic incentive to recycle. • Set rates that are competitive in relation to private haulers and nearby jurisdictions. • Minimize significant changes to customer rates (i.e., keep rates stable over time). In addition to discussing these objectives, we will update the list of information we need, and confirm the project scope and schedule. TASK 2 Gather, Analyze Information and Develop Rate Model We will gather the financial and operational information we will need to perform our analysis. The financial information we will need will likely include the following: • The general ledger trial balance for the most recently completed two fiscal years. (The general ledger trial balance includes detailed line item revenues and expenditures for the City, as well as the beginning and ending reserve balance.) • Fiscal year-to-date revenues and expenditures. • Debt service schedules (if applicable) • Operating and capital budgets. The operational information that we will need will likely include the following: Attachment: Raftelis Scope of Work -Prescott DIF and Rate Study (2124 : Rate & Fee Study Contract with Raftelis) Solid Waste Rate Study - Attachment Page 2 Packet Pg. 260