HomeMy WebLinkAboutVII (B) Discussion/ Action re: Utility Rate Study - Consultant Contract Agenda 4-20-99
Item VII B
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
S.SCOFF VANDERGRIFT
� Ocoee �
CONNISSIONIRS
CITY OF OCOEE DANNY DOWP:IT.
O Rs SCOTT ANDERSON
�� A ISO N. LAKESHORE DRIVE RUSTY JOHNSON
3 �.VVi O OWEIL FLORIDA 34761-2258 NANCY 1 PARKER
nto * (407)656-2322
by ��V..11 als CITY MANAGER
fP OP GOOD V" ELLIS SHAPIRO
MEMORANDUM
DATE: April 15, 1999
TO: The Honorable Mayor and Board of City Commissioners
FROM: James W. Shira, P.E., City Engineer/Utilities Director
SUBJECT: Utility Rate Study - Consultant Contract
On March 16, 1999 the City Commission selected Burton & Associates, Inc. to perform a utility rate
study, and authorized staff to begin contract negotiations with Burton.
Attached for your review and action is a proposed Contract for Professional Services between the City of
Ocoee and Burton& Associates, Inc. The contract divides the work involved into two phases.
Phase I will examine the revenues of the utility to determine the adequacy of this revenue stream to cover
current and anticipated expenses. This phase will also examine the current rate, the rate which was
imposed briefly and rescinded, and other typical rate structures to determine what type of rate structure
would best meet the financial and conservation objectives of the City. A Conceptual Design of Water
Utility Rate Systems report will be prepared which will discuss each of these potential fee structures as
they relate to Ocoee's needs. This conceptual analysis will be used as a basis for further refinement of a
rate structure in Phase II. The work in this first phase will be performed for a not-to-exceed fee of
$19,785.00.
Phase 11 will involve a detailed analysis of potential rate structures identified in Phase 1, a definition of
various customer classes based on water consumption, and an analysis of the impact of each rate structure
on those customer classes. This phase will also include the development of a reclaimed water rate
program which will address various issues related to the provision of reclaimed water to residential and
commercial customers. The final product of this phase will be a comprehensive rate structure for both
water and reclaimed water which addresses the financial and conservation requirements of the city and the
water management district. The work in Phase II will be performed for a not-to-exceed fee of$29,035.00.
I recommend that the City Commission authorize the Mayor and City Clerk to execute the attached
Contract for Professional Services with Burton& Assoc., Inc. for a total not-to-exceed fee of$48, 820.00.
Attachment
YD
BURTON & ASSOCIATES, INC.
CONTRACT FOR PROFESSIONAL SERVICES
Project No. Title: Water Utility Financial Analysis Services
This Agreement,made and entered into on March 24, 1999,by and between BURTON&ASSOCIATES,INC.and THE CITY
OF OCOEE,FLORIDA,hereinafter called"CLIENT", is for the services described under item 2 of this Agreement.
BURTON&ASSOCIATES,INC. Contact: Mr.Michael E.Burton, President
Address: 440 Osceola Avenue
Jacksonville Beach,Florida 32250
Phone No. (904)247-0787
CLIENT Contact: Mr. Jim Shira,P.E.Director of Utilities
Address: 150 N.Lakeshore Drive
Ocoee,Florida 34761
Phone.No. (407)656-2322
1. PROJECT: General Nature of Project-Conduct a Water Utility Financial Analysis. In Phase I,the Analysis will evaluate
the conservation rate requirements of the City's Consumptive Use Permit(CUP)and determine alternative rate structures
that will comply with the CUP requirements while meeting the City's objectives regarding rate structure and customer impact.
The Analysis will also include development of a five year revenue sufficiency analysis for the Water Utility, including the
identification of required revenue increases and/or borrowing requirements in each year of the forecast. Phase II of the
Analysis will include calculation of specific rates and charges in accordance with the adopted rate structure alternative
identified in Phase I.
2. SCOPE OF SERVICES: Description of services to be performed by BURTON&ASSOCIATES,INC.(if additional pages
are necessary,they are identified as Attachment A): Attachment A presents the scope of services and our proposed work plan
to accomplish said scope of services.
3. TIME OF COMPLETION: Services called for herein in Phase I shall be completed no later than 45 days from receipt of
a notice to proceed unless otherwise extended by the agreement of both parties. Time of completion of Phase II will be
determined upon completion of Phase I.
4. COMPENSATION: The compensation to be paid BURTON&ASSOCIATES,INC.for providing the services called for
herein shall be(if additional pages arc necessary,they are identified as Attachment B):
A. A Lump-Sum charge of
J B. Unit Cost/Time Charges in Attachment B plus reimbursable expenses;total not to exceed S 19,785 for Phase I and
S29,035 for Phase II,or S48,820 for the total of Phase I and Phase II. The scope and associated compensation for
Phase II can be renegotiated at the completion of Phase I. *
* See explanation in Section 6 on second page
5. DURATION: This Agreement shall remain in effect until completion of the project and any additional services authorized
in accordance with Section 10,unless terminated as provided herein,or extended by mutual agreement in writing_
IN WITNESS WHEREOF,this Agreement is accepted on the date last written below,subject to the terms and conditions above
stated and the provisions set forth on the second page.
6. UNIT COST TIME CHARGES AND REIMBURSABLE EXPENSES:Unit cost time charges are defined as hourly rates
specified in Attachment B. Reimbursable costs include out-of-pocket expenses,the cost of which shall be charged at actual
cost,up to any limit imposed by the CLIENT.
7. INVOICE PROCEDURE:BURTON&ASSOCIATES,INC.shall submit monthly invoices to CLIENT requestingpayment
for work accomplished during each calendar month. Payment of invoices will be made by CLIENT within 30 days of receipt
of invoice.
8. INSURANCE:BURTON&ASSOCIATES,INC. shall procure and maintain throughout the term of this Agreement the
following insurance with the limits set forth herein, and shall, upon executing this Agreement, provide to CLIENT a
certificate(s)of insurance evidencing same,and showing CLIENT as an additional insured:
A. Worker's Compensation Insurance as required by law.
B. Unless otherwise provided for herein, Comprehensive General Liability Insurance including contractual liability and
liability arising out of the use of automobiles with the following limits:
(I) Bodily Injury Liability Insurance with limits of$100,000 per person and$300,000 per occurrence;
(2) Property Damage Liability Insurance with a limit of$50,000 per occurrence.
C. Unless otherwise provided for herein,Errors and Omissions Liability Insurance with a limit of$500,000 per claim and
aggregate.
9. TERMINATION: This Agreement may be terminated by either party by thirty(30)days written notice in the event of
substantial failure to perform in accordance with the terms herein by the other party through no fault of the terminating party.
If this Agreement is so terminated,CLIENT shall pay BURTON&ASSOCIATES,INC.compensation for work satisfactorily
completed up to date of termination.
CLIENT may terminate this agreement for convenience,or suspend the work called for herein for any business reason. In
the event of such termination or suspension,CLIENT shall pay BURTON&ASSOCIATES,MC.for the work accomplished
up to the date of termination or suspension.
10. ADDITIONAL SERVICES: Additional services may be performed under this Agreement if agreed to by both parties in
writing.
I1. KEY PERSONNEL: Prior to the start of any work under this agreement,Burton&Associates has submitted to the Client
resumes of key personnel who will be involved in performing all activities described in the Scope of Services. The Client
hereby acknowledges its acceptance of such personnel to perform services under this Contract. At any time hereafter that
Burton & Associates desires to change the key professional personnel in an active assignment, it shall submit the
qualifications of the new professional personnel to the Client for prior approval. The Client expressly reserves the right to
disapprove any proposed changes in key personnel.
12. OWNERSHIP OF WORK PRODUCT:It is understood that all work product generated by Burton&Associates pursuant
to this Agreement shall be the property of the Client,subject to payment of all monies due to Burton&Associates.
13. COOPERATION WITH PUBLIC RELATIONS CONSULTANT: Burton & Associates agrees to cooperate with the
Client's public relations consultant in order to assure consistency between the objectives of this Agreement and the public
relations efforts being undertaken by the City, and will attend meetings as requested by the Client's public relations
consultant.
14. ENTIRETY OF AGREEMENT:This writing embodies the entire agreement and understanding between theparties hereto,
and there arc no other agreements and understanding,oral or written,with reference to the subject matter hereof that arc not
merged herein and superseded hereby. No alteration,change or modification of the terms of the Agreement shall be valid
unless made in writing,signed by both parties hereto.
ADDENDA(if required)
ATTACHMENT A-Scope of Services(if required)
ATTACHMENT B -Compensation(if required)
For BURTON&ASSOCIATES, INC.:
SIGNED:
TYPED NAME: Michael E.Burton
TITLE: President
DATE: April 9, 1999
For CLIENT: CITY OF OCOEE,FLORIDA
ATTEST:
lean Grafton, City Clerk S. Scott Vandergrift, Mayor
(SEAL)
FOR USE AND RELIANCE ONLY BY THE APPROVED BY THE OCOEE CITY
CITY OF OCOEE, FLORIDA APPROVED COMMISSION AT A MEETING HELD
AS TO FORM AND LEGALITY this ON , 1999
day of , 1999. UNDER AGENDA ITEM NO.
FOLEY&LARDNER
By:
City Attorney
ATTACHMENT A - SCOPE OF SERVICES
The Scope of Services for this project and our proposed Work Plan for completion arc presented below.
A Objective of the Project
The objective of this project is to prepare a Water Utility Financial Analysis. The study will address the
following scope of work:
1. Review and familiarization with the requirements of the SJRWMD CUP permit.
2. Review the previous/current rate structure and the inclined block rate structure that was used for a short
time. Review and development of potential bulk or wholesale rates for water and wastewater service. If
applicable, develop a new rate structure to meet SJRWMD and Ocoee requirements and/or make
recommendations for other changes to meet those requirements.
3. Review rates to determine if actual revenues meet or exceed anticipated revenues. Review expenditures
to ensure requirements are on track.
4. Review operations pertaining to the water and wastewater functions of the Engineering, Utility, and
Finance Departments to determine if changes are required and/or additional service charges and revenue
enhancements are appropriate.
5. Perform at least one annual reconciliation to test existing and/or proposed rate study projections.
B. Detailed Project Approach
Our approach to this project includes two phases. A general description of Phase I and II is presented on
the following pages and a detailed description of project tasks is presented following the general description
of Phases I and II.
Phase F: Develop a Conceptual Design of die Water Utility Rate Systems
In Phase I, we will develop a conceptual design of the City's Water Utility Rate Systems. This
conceptual design will consist of 1)the conduct of a revenue sufficiency analysis and the development of a five
year rate plan and financial management program- including a borrowing program which will identify sizing,
timing and financing source of required borrowing, and 2)an analysis of the current water utility rate structure
and development of recommendations as to rate structure modifications to meet the City's objectives and
comply with generally accepted rate making practice.
Of particular importance in regard to the City's objectives for this project, will be our evaluation and
recommendations regarding water conservation rates. This phase will also include an evaluation of the
inclining block rates which were implemented and rescinded by the City Commission with the objective being
the determination of the probable cause of the dramatic increase in revenues and customer bills during the
period immediately following implementation of the inclining block rates. Our rate structure evaluation will
also address potential bulk or wholesale water and wastewater rates.
In Phase I we will also use our Alternative Financing Sources model to test the effect upon water and
sewer rates of alternative capital projects financing sources such as SRF, conventional revenue bonds, etc.
This model also allows us to test the rate impact of interim financing from one source, such as bond
anticipation notes, taken out at a future date by permanent financing.
We will develop the five year financial management program, rate plan and rate structure
recommendations using interactive work sessions with City staff in which we will examine the impact of
alternative scenarios upon key financial indicators by use of graphical representations projected on a large
screen from our computer rate models which will be up and running and upon which we will conduct the
alternatives analyses interactively with City staff.
Phase I can be completed quickly. Our approach focuses concentrated attention during Phase Ito 1)
quickly integrate City staff into the process, 2) quickly determine the overall financial outlook for the Utility,
and 3) determine the goals and parameters for development of specific rates and charges in Phase II.
Phase II: Conduct a Cost of Service Analysis and Calculate Rates and Fees
In Phase II,we will conduct a fully allocated cost of service study to properly identify and allocate costs
(including indirect and interdepartmental costs), conduct a bill frequency analysis to derive the necessary
customer and billing data for rate computations and develop specific rates, charges and impact fees for each
utility integrated with a detailed customer impact analysis. Rates and fees will be developed in accordance with
the rate structure recommendations of Phase I and the customer impact analysis will be performed
simultaneously with rate calculations, allowing us to include the City staff in interactive work sessions to
calibrate cost allocation and rate structure variables according to customer impact.
As in Phase I,in these work sessions,we will conduct alternative scenario analyses interactively with City
staff with our rate models up and running on the computer. This allows us to develop final rates and fees that
generate sufficient revenues, yet are structured so as to be sensitive to the City's objectives with regard to
customer impact. Customer impact will be examined for each utility rate and for the combined impact of all
subject utilities upon customers of varying sizes and with various usage profiles within customer classes.
We will also develop a reclaimed water rate program and associated rates in this phase of work. This
will include definition of the reclaimed water rate program in terms of policies and features such as flat vs.
usage based rates, availability charge vs usage charge only, voluntary vs. mandatory connection, etc.
TASKPLAN�T The specific tasks which will be accomplished to complete this project
1 LAIN are presented below and on the following pages:
PHASE I:DEVELOPA CONCEPTUAL DESIGN OF THE WATER UTILITY RATE SYSTEMS
Task I - Develop Conceptual Design of Water Utility Rate Systems
1.1 Meet with City staff(1 meeting) to finalize project objectives, establish project monitoring
and control procedures and begin data gathering.
1.2 Review prior rate study Reports, current and historical financial data, utility systems
configuration, customer billing statistics and other relevant information to gain an
understanding of the current utility systems for which rate analyses are to be performed.
1.3 Conduct a revenue sufficiency analysis and develop a five year financial management program
for each of the water utility enterprise. Includes two (2) interactive workshops with City
staff. The financial management program will include the following:
P. Capital Improvements Program
• Project listing by year
• Optimum funding source by period by year
▪ Borrowing Program
♦ Borrowing required (by source) to fund CIP projects not funded by other sources,
such as:
• Conventional revenue bonds
• RECD loans
• SRF loans
• Interim financing (such as BANs) taken out by future permanent financing
• Timing of borrowing(s)to provide required funds
• Annual debt service of bond issue(s)
• Revenue Sufficiency Analysis
• Annual revenue projections
• Annual rate plan to provide sufficient revenues
▪ Sources and Uses of Funds Analysis
▪ Funds Analysis
• Spend down limits (minimum reserve requirements) by fund
• Beginning and ending funds balances by fund by year
1.4 Conduct a customer impact analysis for each City utility system and for the combined impact
of all City Utility systems based upon identified rate increases necessary to provide sufficient
funding for each year of the five year forecast period:
• Customer impact of each City utility by customer class
• Combined customer impact of all City utilities by customer class
1.5 Evaluate the rate analysis conducted by PEC,and related circumstances,which resulted in the
inclining block rates that were rescinded by the City Commission. The objective of this task
is to determine the probable cause of the dramatic increase in water revenues, and customer
bills, during the period immediately after implementation of the inclining block rates, to
include, but not necessarily be limited to the following:
• Rate calculation methodology
• Availability and reliability of customer and billing data necessary to develop inclining
block rates
• Specific requirements of the SIRWMD regarding inclining block rates relative the City's
CUP
▪ Comparative analysis of prior years water usage during the period immediately following
implementation of the rates
• The potential for weather effects upon water usage - drought conditions during the
period immediately following implementation of the rates
• Other areas as identified during the course of the evaluation
• Prepare letter report of findings
1.6 Conduct an analysis of the current rate structure of the City's water utility and identify
strengths and weaknesses in terms of but not limited to the following criteria:
• Fiscal stability of the utility
• Fair and equitable distribution of the cost of service to customers in proportion to the
benefit received and/or the demands placed upon the system.
• Market acceptability
• Administrative simplicity
• Capability of the Utility billing system to implement changes to the rate structure
In this task we will specifically evaluate the requirements of the SJRWMD CUP requirement,
the City's current rate structure and the previous inclined block rate structure that was used
for a short time. We will identify alternative rate structures that include conservation
incentives and will model the alternative structures along with the City's current rate structure
based upon SJRWMD criteria to determine the predicted conservation effect. Wewill include
at a minimum the following rate structures:
• Current rates.
• Uniform usage rate with cost allocated more heavily to the usage rate resulting in a
lower fixed monthly charge and a higher usage rate.
• Traditional inclining block rate structure.
• The inclusion of a lifeline rate - lower usage charge at low levels of usage for essential
domestic requirements- as a part of a conservation rate structure.
1.7 Identify the implications in terms of cost impact to customer classes(at various usage levels
within class, e.g. low volume vs. high volume user) of implementing identified potential
modifications to the rate structure to address concerns identified in Task 1.5.
1.8 Prepare a draft report of the Conceptual Design of Water Utility Rate Systems.
1.9 Review draft report of the Conceptual Design of Water Utility Rate Systems with City staff
(1 meeting).
1.10 Modify the Conceptual Design draft report and prepare final draft.
1.11 Present final draft report of the Conceptual Design of Water Utility Rate Systems to the City
(1 workshop meeting) for input.
1.12 Based upon input from City staff, prepare the final report of the Conceptual Design of Water
Utility Rate Systems.
1.13 Present the Final Report of the Conceptual Design of Water Utility Rate Systems to the City
(1 meeting) for approval.
PHASE II: CONDUCTA COST OF SERVICE ANALYSIS AND CALCULATE RATES AND FEES
Task 2 - Conduct Fully Allocated Cost Of Service Studies for the Water Utility
2.1 Identify the costs of service for the water utility in terms of, but not limited to the following
types of costs:
• Direct costs of each utility system
• Joint costs that are shared by more than one utility such as water and sewer departmental
costs not directly assignable to either the water or the sewer cost pools.
• Indirect departmental costs benefitting more than one utility
7 _
• Indirect City-wide costs benefitting all or some of the utilities
▪ Interdepartmental costs benefitting all or some of the utilities
2.2 Allocate the costs identified in Task 2.1 to functional classes of service and further to specific
cost elements of the rate structure alternatives adopted for consideration in Task 1.
2.3 Identify required capital projects by year for each utility and analyze each project in terms of
its priority relative to other identified projects, the portion of the project associated with
providing additional capacity vs. renewing or replacing existing capacity, funding sources
eligible to pay for the project and cost per year.
2.4 Determine test year revenue requirement as total cost of service plus any identified
contributions to reserves for each utility.
Task 3 - Develop a Reclaimed Water Rate Protram and Associated Reclaimed Water Rates
3.1 Determine areas for implementation of reclaimed water and reclaimed water costs by phase
with City staff. Include allocation of costs to transmission, distribution and treatment.
3.2 Identify water meter routes in reclaimed water service area
3.3 Meet with City data processing personnel to identify parameters of a billing analysis for water
customers in the meter routes identified in Task 3.2 which will provide reclaimed water billing
unit data to be used in the development of the reclaimed water rate program and associated
rates.
3.4 Compile billing analysis data into spreadsheet format for use in our reclaimed water rate
model
3.5 Set up our reclaimed water rate model with the City's cost and billing unit data
3.6 Develop a baseline scenario and three alternative reclaimed water rate program scenarios
including, but not necessarily limited to, consideration of the following features:
- Metered vs not metered - flat rate vs. rate per unit of usage
- Reclaimed water cost as a percentage of the cost of potable water currently used for
irrigation
- Availability charge if service is available whether the customer connects or not.
- Up front charge- assessment, connection fee, etc. vs no up front fee
- Voluntary vs. mandatory program
- Interruptability of service relative to supply vs demand
- Allocation of non recoverable reclaimed water costs to the water and sewer rates
- Effect of non-recoverable reclaimed water costs upon the water and sewer rates
- Effect of potable water usage offset by reclaimed water upon water and sewer revenues
and the consequent impact upon those rates to preserve the required level of revenue
3.7 Meet with City staff in two(2) interactive work session to review and adjust the reclaimed
water rate program scenarios and to define the policies and features of the City's program
3.8 Develop final reclaimed water rates based upon the results of the interactive work sessions
with City staff.
-8_
3.9 Present the final reclaimed water rates to City staff in an interactive work session and make
final adjustments
3.10 Prepare a report of the results of the reclaimed water rate analysis for inclusion in the final
report of the rate study
Task 4 - Conduct Bill Frequency Analysis To Identify Test Year Billing Units For Each Utility
4.1 Meet with City utility billing/customer service and data processing staff to define the required
bill frequency analysis (BFA) format and to determine if the City's utility billing system can
provide any or all of the identified BFA requirements within its current standard reports. To
the extent that the system cannot provide required BFA data, identify special programming
that will be required to provide the required data.
4.2 Review BFA data provided by the City and structure Lotus conversion files to convert and
calibrate data for use in our rate models.
4.3 Conduct a revenue test for the BFA period to determine the validity of the BFA data.
Calibrate as required to ensure that the billed units to be used in rate calculations would have
generated the rate revenue known to have been generated during the period of the BFA data,
given the rates and charges in force during that period.
4.4 Prepare final compilation of BFA data for merging with the rate model.
Task S - Develop Rates And Fees For Each Utility
5.1 Adjust the rate calculation model for each utility to reflect the rate structure alternatives
approved for consideration in Phase I.
5.2 Adjust the customer impact model to match the current rate structure and the rate structure
alternatives approved for consideration in Phase I for each utility, and to reflect the total
impact of all (or selected) City utilities upon customers in each class.
5.3 Integrate test year cost of service, BFA data and customer impact model into the rate model
for each utility.
5.4 Calculate rates and fees.
5.5 Review revenue test and customer impact analysis graphs, adjust and calibrate rate model.
5.6 Repeat Tasks 5.4 and 5.5 until revenue test and customer impact assessment are within
acceptable tolerances.
5.7 Review with City staff(2 meetings) in interactive session with computer model "up and
running"to test alternative allocations, rate structure options, etc. Adjust models with City
staff until relative customer impacts are within desired tolerances.
5.8 Make final adjustments, print rate schedules, revenue tests and customer impact graphs for
each utility.
9_
•
Task 6 - Prepare and Present Final Report of Utilities Rate Studies
6.1 Prepare a preliminary draft report of the Utilities Rate Study.
6.2 Review draft report of the Utilities Rate Study with City staff(1 meeting).
6.3 Modify the Utilities Rate Study draft report and prepare final draft.
6.4 Present final draft report of the Utilities Rate Study to the City (1 workshop meeting) for
input.
6.5 Based upon input from City staff and the City, prepare the final report of the Utilities Rate
Study.
6.6 Present the Final Report of the Utilities Rate Study to City(1 meeting) for approval.
- to -
ATTACHMENT B - HOURLY BILLING RATES
The hourly billing rates authorized under this contract as are follows:
Principal-in-Charge $150 per hour
Project Manager $125 per hour
Senior Project Consultant $100 per hour
Consultant $ 85 per hour
Clerical $ 35 per hour
- Il -
CITY OF OCOEE
WATER UTILRY FINANCIAL ANALYSIS SERVICES
PROJECT W ORKPLAN d COST ESTIMATE
Baum.1 Asemome.
PROJECT TASKS
m .. .at<.in ...vain e_R.s m
wryra. ring _ un so
PELASEJ-DONCEP_TUALDESMNLOE_THEWATFR UTILITY.MTESYSTEMS
)ueI-
1 Meet with Gay earl(1'meeting)m Maitre pmject obiecteieroa¢n prole.Y monitoring and conhd pomduna and 1 I 0 2
begin data gathering.
12 Review prior rate Study Repefb,current and nkbrbl financial data,water system cenrgunyn,customer billing
statistics and abet relevant Information to pain an understanding of the current ut ay ayhema far which rate
analyses are to be perfwale. 1 2 0
I Conduct a revenue sufficiency analyses and develop a inn year financial management program for the water Wily
system. inclurm two(21 kWnelM wvksnope van Cty WM1 The financial management pgnm col include the
following: 2 20 0 22
o Capnllmpovements Program
- Project listing by year
- Oi s um furs/kg curb by impact by year
o Borroming Program
- PprwWg required(by wrce)to fund OP grater not lusted by other sources to Include but not
normality be ENDS to revenue tondo and Slate Revolving Fund Loans
Taming or bond ktWsymr(s)to Povue required borrowed funds
- Mnual debt service M band nsue(eyaar(s)
o Revenue SUTtlency Anatole
rw pei$CMn$
-
Amuse/are planto p robe aMsM e revenue,Uses
Fume Analysis
• 6pm do..n limits(minimum reserve thndenb)by tam
- aeannkg end ending funds balances
nch nces by Nm by year
1.4 Conduct a customer impact analysis for theet/s water utility system based upon identified rate increases
necessary to clavicle sufficlent funding or each year of to firm year forecast pest. 0 2 0 2
1.5 Evaluate the rake analyse conducted by PEG,and related<kcumennces wnkh resulted in Me Inclining block alas
that were rescinded byte City Commission.The Miecte of Oil task lab determine the probable Mute Mine
drama&increase In water menus,and customer bits,during 6w period Immediately alter Implmenbbn Nth.
Inclining block rates,to nclrW,but not necessarily be tinW to the following:
• Ratecicultin methodology 4 0 5
kaMaty and rabidityea baling customer balinecessary g da necery to developInclining block rates 0 4 0 4
- Specfc requirement M the SJRrWo regarding Inclining block rates relaAe 6n CtYt CUP 0 2 0 2
- Cemparabe analyse M qbr years water usage clueing the period immediately lulloeig implementation of
me rates 0 a 0 a
- Tin potential M swatter effects upon water usage-drought conditions during the PeMd knmsdbbly
folk/Wing mgem.ntatbn Mine rates 0 4 0 4
- Other areas as Nented dung the verse of the evaluation 1 4 0 5
- Prepare letter report a findings 2 4 1 10
16 Conduct an analysis of the anent water utility rate etucum to identity strengths and weaknesses In terms MMd
nd limed In to ldWMg criteria: 2 2 0 4
o FYalstaNry Mine udty
o Water conaerntion honthm
o Fat and equitable distribution M the oast of servo.to customers in proportion to the benefit reuMd and/Or the
demands placed upon the system.
• Market acfeFbbb
o admnwaue amdtty
O Cspbty M the flaky system to Implement changes to the rate structure
In this task we will specifically evaluate the requirements Mine SJNV.LO CUP redurement the Cb/s current rate
*twain and the pMw.Inclined block rate WucWn that was used for a*hod rime. We Will identify alternative
nee Wmmaa that Mode Cementation Menbea and will model the aMmat a structures along with Its Ctya
WW � IRW, n based ul SMO CMerh to determine the predicted conservation ellect We Will include
at.mnknum the bllNg rate structures. 2 16 0 18
o current rates.
o Vntwm usage rate with oasts allocated more heathy to the usage rate mulkg In a lamer fared monthly charge
and a hind cogs ate.
e Tad4mal MFkg beck rate structure.
o The Mum,Ma Melba rate•lower usage charge at W levels M usage to essential domestic requlremenls
as a PC ce a conservation rate structure.
We mill Men creoelop recommendations rearing rate structure modifications,as approprbte,to address SJRWMO
CUP penile requremenb and to ached he and equitable an n of the cost of arvta to customer classes,
win the anted of the Gays rate making goals and objectives. Rate structure mMKoyne may be identified
which address the following areas: 2 4 0 6
o Fled neat"cfaget to Include:
- Custer Charge.
- Cawdy charge-Base Pocky charge to maintaining a readlneszbnrve.
Commodity,or Usage Charge per unit of usage such as 1,000 gallons of metered water.
Conservation Rats as discussed above.
Lifeline rates as discussed above.
w wsa balk rates.
vNbe or
Arckhry&urges for specific sent,,that benefit the recvient and should be paid for by tie recipient at Me
speech sent.,such as reconnect Ms.meter bog Ida,late payment charge,etc.
capital Cost Recovery Fees.
other as dwelled during the study.
-CON➢NUED-
awkCE:MnedtaASSO WTEa
CITY OF OCOEE
WATER UTILITY FINANCIAL ANALYSIS SERVICES
PROJECT WORKPLAN 6 COST ESTIMATE
e
PROJECT TASKS
uwenre-a .r. VIM MD
17 Identify the Implications In tams d cost Impact to customer[asses(at carious usage lewlsrMN class.figs low
volume w.high volume user)of implementing identified potential moercattons to the rate etructure to.adras
mums Identified F Task 16. 0 2 0 2
le Prepare a than repot of the Conceptual Desgn of the Water tmrh Rate System. 2 5 5 II
19 Retew draft repot el O.Conceptual Drain ci 0e Water U0EN Rate System with Cey Staff(I ms.Eng). 2 2 0 4
1.10 Modify the Conceptual Design draft report and prepare foal draft 2 4 3 9
1.II PnnM Mal dolt report of to Conceptual Design of the Water Way Rate System to the City Comm Won(1
meeting)for Input 2 2 0 4
1.12 Based upon Input from City start a the Ch Comm®hn.prepare the final report of the Conceptual'Design of the
Water Wry Rate System. 1 2 2 5
1.13 Pi.ent the Final Report of the Conceptual Deign of the Water Dilly Rate System w me Cry Commission(I
meeting)for approval. 2 2 0 4
1.14 Attend meetings with Clienrs pudtt palatal.consultant
to Inglln.etsp 2 2 0 4
• SIRNMD meeting 1 4 0 B
o Poor(4)WaMal meetings a a 0 16
39 107 14 iM
onlitAkrEOCC•CULITIO FEE-RASE I S5.950 113.3T5 S.560 $19265
E61wMTE0 Eipp5ES-PHASEI NA
FS-TINTED CIMA{S.RWE I $19.795
-CONTINUED-
YSMasFS
CITY OF OCOEE
WATER UTILITY FINANCIAL ANALYSIS SERVICES
PROJECT WORNPLAN&COST ESTIMATE
wroth/in PROJECT TASKS
met totHofer nay-. me tan uo S1 treys, v�<r.
FHA$F II-CONDUCT COST OF SFRVICF ANAI YSIS&CAI CULATF RATFS&FEES
IKKL CONDUCT A FULLY ALLOCATEO COST OFSEAMEE STUDY FOR THE WATER MUM
21 Identify the costs of service for each uglily in terms d,but not limited to the following types of costs 0 4 0 4
o Direct cosh&each utility system
o Joint cats that are shared by more than one uelrty such as water and sewer
departmental firsts not directy assignable to either the water of the sewer cost pools.
o Indirect departmental costs benefiting the water uglify
o Indirect City wW a costs benefiting Me water utility
o InWdepatn.nml cosh berlKtng the water Orb&
2.2 AII¢ate the oasts den45ed in Task 21 to Nrctonal classes of seniors and luMYtO sped!cost elements of the
rate sbcdure alternatives adopted for consideration in Phase I. 0 4 0 4
23 Identify required capital projects by year and analyze each In teas N its priority,portion
reated to expanding system capacity.funding sources eligible for payment&the project
ardart per year. 0 2 0 2
24 Determine test year teens requirement as total cost of aeTAce plus any identified conbibu*ons to reserves for
eachulily 1 1 0 2
TK.i6i QfIFLOEAFEC
3.1 Determine areas for Implementation of reclaimed water and reclaimed water cats by phase with City staff
Inctude mbtaton of costs to transmission,disPNrion and treatment 2 2 0 4
3.2 Hentify water meter mutes in reclaimed water service area 2 2 0 d
93 Meet with City data processing personnel to identity parameters of a tilling analysis for water customers in the
meter routes identified in Task 3.2'MKh will provide reclaimed water billing unit data to be used in the
deveymentof the reclaimed water rate pmgam and associated rates. 1 4 0 5
3.4 Compile billing analysis data into spreadsheet format for use in our reclaimed water rate model 1 18 0 17
95 Set up our r iaimed water rate model with the Citys cost and billing unit data 1 18 0 17
3.0 Develop a baseline scenario and three alternative reclaimed water rate program scenarios including,but not
necessarily limited to,consideration e the fdkwq features 2 24 0 28
Wend ya rot
t rale vs.
Reciakred water metered.a pe�raa&aw east a wale wits mesa use w knwriar
Award..Serp. uraor
wet
le.w.w codthe w lorew oneness or b.
t4 that deg.-roses& osex coo,In.etc.w cow kae ae
ve..aaa.ae,srerraay.-
▪onototatyd nobs r.YNa to aeVan deewd
Ewa,s Nil N nelere rends.deddcosetoe.nd.am sews m..
Ellett• apotnw wow mai*wat water
meanies ntsr ewd�s w saira.ss..and w mnrad inane wen nose
ream re.r.w e.mune Ywr .ewers
3.7 Meet kith City staff in hog)Interactive wont session to review and adjust the reclaimed water rate pngam
scenarios and to define the policies and feature of the Drys program 4 8 0 12
3.8 Develop final reclaimed water fate.based upon the results&the interactive work sessions wrth city sun. 1 8 0 7
3.9 Present the final reclaimed water rates to CM staff in an interactive want session and make final adjustments
4 0 8
3.10 Prepare•ip.'tof the results of the reclaimed water rate analysis M inclusion in the final report&the ate study
2 8 T tT
TASK 4- [Siff Wn4LLFFEWEy[ysM mglgfpcMVY TESTPosRYr r Syr:own FORA l WJUI T'
AI Meet with CM utility billing/customer service and data processing staff to define the required bill frequency
analysis(BFA)format and to determined the Crtys acuity billing system can provide any or all of the identified BFA
requirements within its current standard reports. To the extent that the system cannot provide required BFA data,
identify special programming 0 2 0 2
that wit required to provide the required data
4 2 Rerieu BFA data provided by the City and structure spreadsheet emeam fiks to coned K calibrate data or
use in our ate models 0 4 0 4
4.1 Conduct a revenue test for the BFA period to determine the validity of the BFA data. Calibrate as requitedto
ensurethat the billed units to be used in rate calculations would have generated the ratehave
revenue known to .e
been generated during the period of the BFA data.given the rates and charges in force during that period.
O 4 0 4
Aa Prepare final compilation of BFA data to merging with the rate model. 0 4 0 a
•CONTINUED-
hos
...ossa.0 e..r S TEa
ar worm
CITY OF OCOEE
WATER UTILITY FINANCIAL ANALYSIS SERVICES
PROJECT WORKPLAN 6 COST ESTIMATE
ESPANTED aS PROJECT TASKS
Me Jevry ns-s uv un ve
5.1 Adjust the rate cakulatim model ta Mkct the rate structure alternatives approved or consideration in Phase I.
0 2 0 2
5.2 Adjust the customer impact model to match the current rate structure and the rare structure alternatives approved
for consideration in Phase I or each utility,and to reflect the limped upon customers in each class
0 2 0 2
53 Integrate test year cost of seMu,BFA data and customer impact model into the rate model. 0 2 0 2
54 Calculate water utility rates and lees. 2 8 0 10
55 Review revenue test and customer impact analysis graphs,adjust and calibrate rate model. 1 2 0 3
5.6 Repeat Tasks 4 4 and 4 S unlit revenue test and customer impact assessment are within acceptable tolerances.
2 6 0 10
5.7 Renew with CM start(2 meetings)in interactive session%eh computer model''up and running"to test alternative
desirOcations,rate structure opl Mc. Adjust models wM City staff un0t rem4.e customer impacts are within
edmq
tolerances. 4 8 0 12
58 Make anal adjustments,print rate schedules,revenue test and customer impact graphs. 2 8 0 10
Iesa e- BlEMPLAIIILPSESAA MAN AFPORT OF THE WATFR MY RY MIT 57vOY
6.1 Prepare a draft report of tie Water Utility Rate Study. 2 8 6 18
82 Review draft report to the Water Utility Rate Study with City start(I meeting). 0 2 0 2
83 Modify the Water utility Rate Study draft retort and prepare final draft 1 a 4 0
8E Present final draft report of to Water Utility Rate Study to the City Commission(1 woi*shop meeting)for input
2 2 0 a
85 Based upon input front Cory staff Crty Commisw'r.prepare the anal refold of the Water UhlM Rate Study
2 a 2 8
66 Ptesem the Final Report of the Water Utilty Rate Study to the City Commission(1 meeting)for approval. 2 2 0 4
II 41 177 19 23?
iEOmarLTIC FEEEPvsc II 58,150 522.125 S760 $20,035
ESIMATEO EFPOEES-WASE II NA
EST/ATEO[PARSES-PRASE u $294025
TOTAL PROJECT ESIWMID MWYNMs 80 284 33 397
TOTAL PROJECT Esivwrt0 n' 9ARNO FEE $12800 S35,500 51320 $48,820
ESTIMATED POPPERS-ES NA
TOTAL PROJECT EITMAIm COST Ea9,920