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HomeMy WebLinkAboutVII (D) Utility Rate Study Agenda 4-01-2003 Center of Good t7 Item VII D Matgr •lh lll� (rmm, a nerp S' ScottA indcrgrift 4 Donn Nowell,D. trirtl Scot, Anderson_Di nict2 DUN �1 tnnger ©��� Rusty Johnson. District 3 lint (lit i on ���. xv_ 4ane J Po ukcr. Di tort I MEMORANDUM DATE: March 25,2003 TO: The Honorable Mayor and Board of City Commissioners FROM: David A. Wheeler, P.E., Director of Public Works 049-a ✓ SUBJECT: Utility Rate Study- Consultant Contract Burton & Associates, Inc. was selected by the City Commission to perform a rate study approximately four years ago and again two years ago. Because Burton & Associates, Inc. is familiar with the City's people and its set up, staff would like to use them again to perform a rate study in relation to possible rate restructuring of the utility rates. Staff and Burton & Associates. Inc. are attempting to fast track a majority of the work to be able to present the preliminary data at the workshop being scheduled in April. 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 evaluate the adequacy of the current and projected revenues of the water and wastewater systems. The evaluation will consist of the identification of the required revenue increases and/or borrowing requirements in each year of a five year projection period and development of a five year financial management program for the projection period. The work in this first phase will be performed for a not-to-exceed fee of$9,491.00. Phase II will evaluate the current rate structure and identify appropriate alternatives rate structures for consideration, with particular attention to alternative inclining block water conservation rate structures. The evaluation will include the allocation of costs of water and wastewater service to properly meet the required program, conduct a bill frequency analysis to derive the necessary customer and billing data for rate computations and will develop specific rates and charges for each utility integrated with a detailed customer impact analysis. The work in Phase II will be performed for a not-to-exceed fee of$19,843.00. 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 S29,334.00. City of Deuce • ISO N I,!keshorc Uriyc• Ounce. Florida 3,1761 phone: 6107)905-3100 • Ds: (407)6i6-8501 - wuw.ci most tl u I request approval to fund this rate study from the Water& Wastewater R &R accounts in the amount of S 14, 667.00 from each account. Attachment rug SO�"�4 eS March 12, 2003 Mr. David Wheeler, P.E. Director of Public Works City of Ocoee 150 N. Lakeshore Drive Ocoee, Florida 34761 Re: Water and Wastewater Rate Study Dear David. It was good to speak with you on Monday. I am glad to hear that you are doing well and I appreciate you sharing with me the information about the progress that you have made with your water, wastewater and reclaimed water rates and the status of the success of your POWR program. As you requested, I have included a proposal to update the water and wastewater rate study that we conducted in 1999/2000. I have structured the proposal in the form of a proposal letter with a proposed contract, similar to our prior contract, to facilitate the process as you indicated that you would like to begin the Study as soon as possible. The proposed contract includes a description of the scope of work, our approach to the project and a detailed Project Workplan and Cost Estimate Schedule. Of course, the proposed contract, or the proposed scope of work and task plan can be adjusted as required based upon your review. 'the proposed cost of the Study is $29,334. In order to give you a perspective within which to evaluate our proposal, I have developed a comparative analysis of this proposal to our original contract and the Revenue Sufficiency Analysis Update that we conducted in 2001. 'this comparative analysis is presented in the table on the following page. As can be seen in the above referenced table, the cost for this proposed Rate Study Update is about $19,500 less than the cost of the original Rate Study. As can also he seen in the table on the preceding page, the cost for Work Element I Revenue Sufficiency Analysis in this proposal is essentially the same as the Revenue Sufficiency Analysis Update that we conducted in 2001, both of which are about $10,300 less than the cost of Phase I —Revenue Sufficiency Analysis in the original contract. Also, the cost for Work Element II — Rate Design, Cost Allocation and Calculation of Rates in this proposal is about $9,200 less than the cost of Phase II — Cost of Service and Calculation of Rates in the original contract. Difference Compared to Original Contract Cost Contract Original Contract: Phase I—Revenue Sufficiency Analysis(6-10-99) $19,785 NA Phase I—Cost of Service and Calculation of Rates 10-27-99 $29,035 NA Total Original Contract $48,820 NA Update of Revenue Sufficiency Analysis(3-25-01): $9,505 ($10,280) Current Proposal for Rate Study Update: Work Element I—Revenue Sufficiency Analysis $9,491 ($10,294) Work Element II —Rate Design, Cost Allocation and Calculation of Rates $19,843 $9,192 Total Current Proposal for Rate Study Update $29,334 ($19,486) Work Element I is substantially lower than the same work in the original contract on a percentage basis because it is a true update and we can build on much of the same work that was accomplished in the original contract. Work element 11 is also lower than the same work in the original contract, but not by as high a percentage as for Work Element I. This is because much of the work in Work Element 11 can not specifically build on the same work in the original contract- namely: 1) 'the billing history analysis must he run as if new because usage patterns may have changed since the last analysis, 2) The rate structure work must be accomplished almost as if new because of the need to include consideration of current inclining block rate guidelines, requirements of the SIRWMD, and objectives of the City, and 3) The draft and final reports of the study must be written as if new to document the results of this study. I trust that the enclosed proposal is responsive to your request, however, if you have any questions, or would like to discuss it, please do not hesitate to call me at (904) 247-0787. Also, if you would like, I would be happy to meet with you at your convenience to discuss the project. Again, it was good to speak with you and 1 look forward to the opportunity to work with you on this important project. Very truly yours, Michael E. Burton President MEB/cs Enclosures • March 12, 2003 Mr. David Wheeler, P.B. Director of Public Works City of Ocoee 150 N. Lakeshore Drive Ocoee, Florida 34761 Re: Water and Wastewater Rate Study Dear Mr. Wheeler: As requested, Burton & Associates is pleased to present the City of Ocoee with this proposal to conduct a Water and Wastewater Rate Study. The primary objectives of the study will be to update the previous rate study work that we completed for the City in 1999/2000 in order to: 1) Recompose a five year revenue sufficiency analysis for the City's water and wastewater utility, 2) Develop a new five year financial plan for the City's utility, and 3) Restructure the City's water and wastewater rates to, at a minimum, include the development of inclining block water rates in accordance with current standards and requirements of the St. Johns River Water Management District. I have enclosed a proposed contract, which includes 1) a description of the proposed scope of work, 2) our detailed task plan to accomplish the work, and 3) a Project Workplan and Cost Estimate Schedule which presents our proposed task plan with a description of each task and sub-task to be performed, an estimate of man-hours by task and an estimate of the project cost by task and in total. Review of this schedule shows the following: Work Element I— Revenue Sufficiency Analysis will require approximately 71 man-hours for an estimated fee of $9,215, plus estimated out-of-pocket expenses of $276 for a total estimated Work Element I cost of$9,491, Work Element 11 — Rate Design. Cost Allocation and Calculation of Rates and Charges will require approximately 161 man-hours for an estimated fee of $19,265, plus estimated out-of- pocket expenses of$578 for a total estimated Work Element II cost of$19,843, therefore, The Total Project will require approximately 232 man-hours for an estimated fee of $28,480, plus estimated out-of-pocket expenses of$854 fora total estimated Project Cost of$29,334. This cost estimate is based upon my understanding of the requested scope of services based upon our telephone conversation. To the extent that the proposed scope of services, as reflected in the workplan in the enclosed Project Workplan and Cost Estimate Schedule, is more or less comprehensive than your requirements, I would be happy to discuss the scope with you and adjust the proposed workplan and cost estimate accordingly. We are prepared to begin work on this project immediately and estimate that it can be completed within approximately 60 days. We appreciate the opportunity to continue to be of service to the City on this important project and look forward to working with you and the other members of City staff again. If you have any questions, please do not hesitate to call me at(904) 247-0787. Very truly yours, liflie �. 8 man Michael E. Burton President MEB/cs Enclosure BURTON & ASSOCIATES, INC. CONTRACT FOR PROFESSIONAL SERVICES Project No. 52102 "Title: 2003 Water and Wastewater Rate Study This Agreement, made and entered into on the date last executed below, 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: 2902 Isabella Blvd., Suite 20 Jacksonville Beach, Florida 32250 Phone No. (904) 247-0787 CLIENT Contact: Mr. David Wheeler, P.E. Director of Public Works Address: 150 N. Lakeshore Drive Ocoee, Florida 34761 Phone No. (407) 905-3100 x 1504 I. PROJECT: General Nature of Project - Conduct a Water and Wastewater Rate Study as an update of the rate study conducted in 1999/2000. In Work Element I the Study will include assessment of the adequacy of current and projected rate revenues for a five year projection period, the identification of required revenue increases and/or borrowing requirements in each year of the projection period, and development of a five year financial management program for the projection period. Work Element 11 of the Study will include 1) evaluation of the current rate structure and identification of appropriate alternative rate structures for consideration, with particular attention to alternative inclining block water conservation rate structures, 2) calculation of specific rates and charges in accordance with the alternative rate structures, and 3) evaluation of the impact of alternative rate structures upon the monthly water and wastewater bills of customers. 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 shall be completed no later than 60 days from receipt of a notice to proceed unless otherwise extended by the agreement of both parties. 4. COMPENSATION: The compensation to be paid BURTON & ASSOCIATES, INC. for providing the services called for herein shall be (if additional pages are necessary, they are identified as Attachment B): A. A Lump-Sum charge of / B. Unit CosVTime Charges in Attachment B plus reimbursable expenses; total not to exceed $29,334. 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. For CLIENT: For BURTON& ASSOCIATES, INC.: SIGNED: SIGNED: VUcAicue t. Bwz on TYPED NAME: TYPED NAME: Michael E. Burton "TITLE: TITLE: President DATE: DATE: March 13, 2003 9 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 he charged at actual cost, up to any limit imposed by the CLIENT. 7. INVOICE PROCEDURE: BURTON & ASSOCIATES. INC. shall submit monthly invoices to CLIENT requesting payment 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. 13. 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: (l)Bodily Injury Liability Insurance with limits of S100,000 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 seven (7) 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, INC. 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. 11. ENTIRETY OF AGREEMENT: 'this writing embodies the entire agreement and understanding between the parties 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) ATTACI IMENT A- Scope of Services (if required) ATTACHMENT B - Compensation (if required) 10 ATTACHMENT A - SCOPE OF SERVICES The Scope of Services for this project and our proposed Work Plan for completion are presented below. A Project Workplan and Cost Estimate Schedule is also attached. This Schedule presents the task plan described below with estimated man-hours, estimated expenses and total estimated cost by task, by Work Element and for the total project. A. Objective of the Project The objective of this project is to conduct a Water and Wastewater Rate Study as an update of the rate study performed in 1999/2000. The study will address the following scope of work: I. Evaluate the sufficiency of current and projected water and wastewater revenues for a five year projection period, identify required revenue increases and/or borrowing requirements in each year of the projection period, and develop a five year financial management program For the projection period. 2_ Evaluate the current rate structure and identify appropriate alternative rate structures for consideration, with particular attention to alternative inclining block water conservation rate structures, calculate spedlie rates and charges in accordance with the alternative rate structures, and evaluate the impact of alternative rate structures upon the monthly water and wastewater bills of customers. R. Detailed Project Approach Our approach to this project includes two work elements. General descriptions of Work Elements I and II are presented below and a detailed description of project tasks is presented following the general descriptions of Work Elements I and II. Work Element I: Revenue Sufficiency Analysis In Work Element I, we will evaluate the adequacy of the current and projected revenues of the water and wastewater systems. This Work Element will consist of the identification of required revenue increases and/or borrowing requirements in each year of a five year projection period, and development a five year financial management program for the projection period. 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 he up and running and upon which we will conduct the alternatives analyses interactively with City staff. Work Element I can be completed quickly. Our approach focuses concentrated attention during Work Element Ito I) quickly integrate City staff into the process, 2) quickly determine the overall financial outlook for the Utility, and 3) determine the revenue goals and parameters for development of specific rates and charges in Work Element II. Work Element II:Rate Design, Cost Allocation and Calculation of Rates and Charges In Work Element II we will evaluate the current rate structure and identify appropriate alternative rate structures for consideration, with particular attention to alternative inclining block water conservation rate structures. We will fully allocate the costs of water and wastewater service study to properly identify and allocate costs (including indirect and interdepartmental costs), we will conduct a bill frequency analysis to derive the necessary customer and billing data for rate computations and we will develop specific rates and charges for each utility integrated with a detailed customer impact analysis. Rates and charges will be developed in accordance with 11 the rate structure alternatives identified and the customer impact analysis will he 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 Work Element 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 charges that generate sufficient revenues,yet arc structured so as to be sensitive to the City's objectives with regard to customer impact. Customer impact will he 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. TASK PLAN The specific tasks which will be accomplished to complete this project are presented below and on the following pages: WORK ELEMENTI: REVENUE SUFFICIENCY ANALYSIS(TASK I) TASK 1- CONDUCT A REVENUE SUFFICIENCY ANALYSIS 1.1 Update the Financial Analysis and Management System (FAMS) model with FY 2003 year-to-date information, FY 2002 year end cash balances from FY 2002 CAFR. FY 2004 budget information and current Clr. 1.2 Allocate revenue requirements to water and wastewater: a. Identify and determine values for allocation criteria to allocate costs to water and wastewater for all major cost components. b. Develop a cost allocation schedule to allocate all costs to water and wastewater based upon the allocation criteria determined in Task 1.2a. c. Review cost allocations with City of Ocoee staff. d. Make adjustments as required based upon review with City of Ocoee staff 1.3 Run FAMS model and produce preliminary output to include a five (5) year financial management plan which will include the following: ► Capital Improvements Program: Project listing by year Optimum funding source by project by year Borrowing program: . Amount . Timing . Annual debt service ► Revenue Sufficiency Analysis: Annual revenue and expense projections: . Alternative revenue/funding sources . General Fund allocations Capital requirements funding from impact fees, revenues, reserves and borrowing. Annual rate plan to provide sufficient revenues: . Include consideration of annual price indexing . Identification of just in time rate revenue increases and alternative rate plans such as equal annual percentage increases, etc. Preparation of projected operating statements, cash flow analyses, fund balances and sources and uses of funds for each year in the projection period. ► Sources and Uses of Funds Analysis ► Funds Analysis: Spend down limits(minimum reserve requirements) by fund 12 Beginning and ending fund balances by fund by year 1.4 Review preliminary FAMS output with consulting team management, calibrate and adjust as necessary. re-run model and produce draft output. 1.5 Conduct interactive review session with City of Ocoee staff to review draft results of revenue sufficiency analysis. 1.6 Make adjustments based upon input from City of Ocoee staff and produce output schedules. 1.7 Review output, adjust and produce final draft output schedules. 1.8 Review final draft revenue sufficiency results with City of Ocoee stall in an interactive work session. 1.9 Make adjustments based upon input from City of Ocoee staff and produce final revenue sufficiency schedules_ 1.10 Present draft results of the Revenue Sufficiency Analysis to City of Ocoee Management in an interactive work session. WORK ELEMENT IL RATE DESIGN, COST ALLOCATION AND CALCULATION OF RATES AND CHARGES (TASKS 2 - 6) TASK 2 - EVALUATE CURRENT RATE STRUCTURE AND DEVELOP RATE STRUCTURE ALTERNATIVES 2,1 Prepare a summary description of the current rate structure to validate our understanding of the current structure and to facilitate evaluation of the current rate structure: a. Review all current rate ordinances and/or resolutions, b. Prepare a description of the current rates and charges and the structure of the water and wastewater rates in a rate structure evaluation matrix, c. Review the description of the current rates and charges and rate structure with City of Ocoee stall'to ensure an accurate understanding of the current rate structure, discuss the City's objectives regarding potential rate structure modifications and conduct an evaluation of the current rate structure relative to the City's objectives and accepted rate making practice, to include inclining block water rates, d. Adjust the description of the current rates and charges and rate structure based upon input from City of Ocoee staff in Task 2.1 c. 2.2 Based upon input from City of Ocoee staff in Task 2.Ic, define alternative rate structure changes to he evaluated to include inclining block water conservation rates(up to three alternative rate structures). TASK 3 - ALLOCATE COST OF SERVICE 3.1 Identify and determine values for appropriate allocation criteria for allocation of cost components to elements of the alternative rate structures to be evaluated to include, but not necessarily be limited to: ► Customer costs P. Base facility costs ► Commodity or usage costs ► Costs to provide wholesale service, if applicable ► Other costs as identified during the study 3.2 Develop cost allocation schedules based upon the above referenced allocation criteria. 3.3 Review the cost allocations with City of Ocoee staff in an interactive work session. 3.4 Make adjustments to the cost allocations based upon input from City of Ocoee staff in Task 3.3. 13 3.5 Apply the cost allocation results to the FY 2004 revenue requirements(the test year for rate making purposes) from Mask I to properly allocate the net revenue requirements for the test year. TASK 4- CONDUCT A BILL FREQUENCY ANALYSIS 4.1 Prepare specifications for required historical killing data and conduct conference call with City of Ocoee staff to discuss the required data. 4.2 City of Ocoee staff to provide required billing history data in accordance with the specifications in Task 4.3 Review billing history data provided by City of Ocoee staff and compile into the bill frequency module of Burton & Associates' Rate Model. 4.4 Test predicted revenue with historical billing history against actual revenue to validate the accuracy of the billing data. 4.5 Make adjustments as required to validate pilling data based upon additional input, as required, from City of Ocoee staff. TASK 5 - CALCULATE ALTERNATIVE SCHEDULES OF RATES AND CHARGES 5.1 Adjust the FAMS rate calculation module to I) incorporate the alternative rate structures to be evaluated based upon the rate structure results of Task 2, and 2) calculate the impact upon the monthly bills of customers in each customer class. 5.2 Prepare scenarios in the rate module that calculate rates for each rate structure scenario to be evaluated including inclining block water conservation rates(up to three alternative rate structure scenarios). 5.3 Review alternative rate structure scenarios with consulting team management and adjust as required. 5.4 Review the rate structure scenarios in an interactive work session with City of Ocoee staff. 5.5 Make adjustments as required based upon input from City of Ocoee staff in '[ask 5.4. 5.6 Review the adjusted rate structure scenarios in an interactive work session with City of Ocoee staff 5.5 Make adjustments based upon City of Ocoee staff input in Task 5.6. TASK 6 - PREPARE A REPORT OF THE RESULTS OF THE RATE STUDY AND ATTEND CITY COMMISSION MEETINGS 6.1 Prepare a Draft Report of the Rate Study. 6.2 Review the Draft Report with City of Ocoee staff. 6.3 Make adjustments based upon input from City of Ocoee staff and prepare a Final Draft Report of the Rate Study 6.4 Review the Final Draft with City of Ocoee Management. 6.5 Make adjustments based upon input from City of Ocoee staff and prepare a Final Report or the Rate Study. 6.6 Attend meetings to present the results of the Rate Study to the City Commission, to include: a. One Commission workshop b. One Commission Meeting c. One Rate Hearing 14 ATTACHMENT B - HOURLY BILLING RATES The hourly billing rates authorized under this contract as are follows: Principal-in-Charge SI 65 per hour Senior Consulting Principal $135 per hour Senior Project Consultant $115 per hour Consultant $ 95 per hour Clerical $40 per hour 15 Page of 5 CITY OF OCOEE to a,.„.ui FY 2003 WATER AND WASTEWATER RATE STUDY ' PROJECT WORYPLANI COST ESTIMATE Prepared by Burton S Associates aB4t1Z;1 ab24in€-% ESTIMATED MAN-HOURS JRA hra Taal PROJECT TASKS Mnepi hqw Hairy are-, vn sae 1w WOR%Ft enfant REYEA'UFSUFFfriEM^Y ANALYSIS!TASK ft T4 K1. rOM11 I-A RFVFNVF SyFFIrIFRrY ANAI MG 1.1 0 12 0 12 12 Allocate revenue requirenentslo water and wastewater: a. Identity and determine values for allocation criteria to allocate casts to water and wastewater for all major cost components. 1 2 0 3 b. Develop a cost allocation schedule to allocate all costs to water and wastewater based upon the allocation crass determned in Task 1 2a. 1 4 0 5 c. Review cot allocations with City of Ocoee stall 2 2 0 4 d. Make adjustments as required based upon reviwwith City of Ocoee staff. 1 2 0 3 1.3 Run FAMS model and produce preliminary output to include a five(5)year financial management plan which will include the following: 1 2 0 3 o Capital Improvements Program: - Project listing by year - Optimum funding source by project by year - Borrowing program: Amount Timing Annual debt service o Revenue Sufficiency Analysis: - Annual revenue and expense Protections: . Alternative revenuedfunding sources General fund allocations Capital requirements funding from impact fees,revenues.reserves and borrowing. - Annual rate pan to provide sufficient revenues: Include consideration of annual price indexing Identification oflust in time rate revenue increases and alternative ale pans such as equal annual percentage etc. • Preparation of projected operating statements,cash lowanalyses,fund balances and sources and uses of fundsfor each year in the projection period. o Sources and Uses of Funds Analysis o Funds Analysis: - Spend dove fimits(minimum reserve requirements)by fund - Beginning and ending fund balances by hind by year CITY OF OCOEE % FY 2003 WATER AND WASTEWATER RATE STUDY f$OIPLT WORKMAN&COST ESTIMATE C' � aeaa,<eaa Burton s Associates et}ip4)Ild.}s aaoULYAiCa ESTIMATED MAN-HOURS hgra %Die% Tali PROJECT TASKS ., ps %aka Floury,rate-, S1e5 na 140 1a Review preliminary FPMS output nth consulting learn management,cakbare and adjust as necessary.re-run model and produce draft output. 1 4 0 5 15 Conduct interactive review session with City of Ocoee staff to review dial results of revenue sufficiency analysis. 4 4 0 8 16 Make adjustments based upon input from City of Ocoee staff and produce output schedules. 0 4 0 4 1.7 Review output,adjust and produce final draft output schedules. I 2 0 3 1.8 Review final draft revenue sufficiency results Mil City of Ocoee staff in an interactive work session. 4 4 0 8 19 Make adjustments based upon inpul from City of Ocoee staff and produce final revenue sufficiency schedules. 1 4i 0 5 1.10 Present draft results of the Revenue Sufficiency Analyse to City of Ocoee Management an interactive work session. 4 4 0 8 OTAL ESTIMATED MAN-HOURS•NORN ELEMENT I 21 50 0 71 OTAL ESTIMATED CONSULTING FE--WORN ELEMENT I $3,465 $5,750 $0 $9,216 STIMATED ESGENSES•WORK ELEMENT I 1.00% $276 r OTAL ESTIMATED CHARGES•WORK ELEMENT I $9,491 '-, YORK Ft EMENTIt RATFOFSIGN rag'ALLnrAnnNmin MI rip RMNoEAAfFANO NAR 2-M 'ASK 2- FVALIIATF rlIRRFNT RATESIRUCTURF ASO OFV60FRITF ttRVCTIIRF AI TFRNATn65 2.1 Prepare a summary description of the current rate struclure to validate our understanding of the current drub-Ore and to facilitale evaluation of the current rate structure: a. Review all current ale ordinances and/or resolutions, 0 1 0 1 b. Prepare a description of the current rain and charges and the structure of the peter and wastewater rates in a rate structure evaluation male; 0 2 4 6 c. Review the description of the current rates and charges and ate structure wth City of Ocoee staflo ensure an accurate understanding of the current rale structure,discuss the Guys objectives regarding potential ate structure rrudifwalions and conduct an evaluation of the current rate structure relative to the City's objectives and accepted rate raking practice,to include Waning block vaterales, 2 2 0 4 d. Adjust the description of the current rates and charges and rale structure based upon inpul from City of Ocoee staff in Task2.1c. 0 2 0 2 2.2 Based upon input from City of Ocoee staff in Task 2.1c,define allernafrveale slacure changes to be evaluated to include inclining back water conservation rates(up to three atemalive rate structures). 1 2 0 3 -MAL ESTIMATED MAN-HOURS.TASK 2 3 9 4 16 'OTAL ESTIMATED CONSULTING FEE•TASK 2 $495 $1035 $160 51,690 ESTIMATED EXPENSES•TASK 2 3.00% $61 OTAL ESTIMATED CHARGES-TASK 2 $1141 CITY OF OCOEE µc„.'n% FY 2003 WATER AND\l'ASTEWATER RATE STUDY �O PROJECT WORK PLAN&C0.tTP.SPMAT£ p �� n Prmaan1b5'Burton etAssociates +{}1CtSt13v fa>O4TA{4-`, ESTIktATEO MANHOURS mint %Rya Tow PROJECT TASKS Pqq NcuM rate- ^ IIS5 a 96 la 'ASK 1- Al Lnr4WrncLyt8P$NC' E 3.1 Identify and delermine values for appropriate allocation criterh for afoallon of cost components to elements of the alternative rate structures to be evaluated to include,bul not necessary be lirdted lo: 1 4 0 5 o Customer costs o Base facility costs o Comrradity or usage cogs o Costslo provide wlalesae service,it applicable o Other costs as identified duhr9 the study 3.2 Develop cost allocation schedules based upon the above referenced allocation criteria. 1 4 0 5 3.3 Review the cost allocations with City of Ccoee staff in an iMeraclive work session. 2 2 0 4 34 Make adjustments to the cost albalrvn based upon input from City of Ocoeestaff T Task 3.3. 0 2 0 2 3.5 Apply the cost allocation results tome FY 2004 revenue requirements Ohe test year for rate making purposes)from Task I to properly allocate Hie net revenue requirements for the lest year. 1 2 0 3 a oTAL ESTIks4TED MAN-HOURS-TASK" 5 14 0 19 — 'OTAL ESTIMATED CONS LILTING FEE-TAW $825 $1,610 $O $2,436 :STIMATED EXENSES-TASKS 300% $73 'OTAL ESIMATED CHARGES-TASKS $2,608 2,5ffi CONDUCTA BILL FAEQu NOYANAI PSB 4.1 Prepare specifications for required historical billing data and conduct conference call Mlh City of Ocoee stafflo discuss the required data. 1 2 0 3 4.2 City of Ocoee staff to provide required billing htdy data in accordance with the yxifcations in Task 4.1, NA NA NA NA 4.3 Review billing history data provided by City of Ocoee staff and compile into the tail frequency module of Burton&Associates' Rate Model. 0 4 0 4 44 Test predicted revenue with historical billing history against actual revenue to validate the accuracy ofthe billing data. O 16 0 16 4.5 Make adjustments as required to validate baling data based upon additional input.as required,from City of Ocoee staff. O 0 4 OTAL ESTIMATED MAN-HOURS-TARA 4 1 26 0 27 OTAL ESTIMATEDCONSJITING FEE.TASK4 $165 $2,590 $0 $3,166 :STIMATED EXPENSES•TASK 4 :ON 496 DIAL ESTI6ATeDCHAROES-TAS 4 $3,260 CITY OF OCOEE FY 2003 WATER AND WASTEWATER RATE STUDY 6 PROJECT WORKMAN&COST ESTIMATE c A 3 Prepared by Amon&4ssonates EEULt s4 t>J53441:SS ESTIMATED MANAOURS PRWECTTASKS ngea waq Total Ma IwuMnk.a �ri09 Least/twitlrat Ins TASK 5- gagillATEALIERNAIWESOLEXILLUERAMARQSBAR06 -.. 5.1 Adjust the FAMS rale calculation rrudule to 1)incorporate the alternative rate structures to be evaluated based upon the rate structure results of Task 2,and 2)calculate the impact upon the monthly bills cf customers in each customer cfas. 1 12 0 13 5.2 Prepare scenarios in the rate module that calculate ales for each rate structure scenario to be evaluated including Pricking block water conservation rat (up to three alternative rale slndure scenarios). 1 8 0 9 5.3 Review alternative rate structure scenarios with consulting team management and adjust as required. 1 2 0 3 54 Review the rale structure scenarios in an nteractive work session with City of Ocoee slag 4 4 0 6 5.5 Make adjustments as required based upon input from Cty of Ocoee staff in Task 5A. I 4 0 5 56 Review the adjusted rate structure scenarios in an interactive work session with City of Ocoee staff. 4 4 0 8 55 Make adjustments based upon City of Ocoee staff input in Task 5.6. 1 4 0 5 P ~ 'OrAL ESTIMATED MAN-HOURS-TASKS13 38 0 51 OTAL ESTIMATED CONSULTING F3•TASK 5 $2,145 $4,370 $0 $6,616 i STIMAT®EXPENSES-TASKS 3GO% _ $196 -OTAL ESTIMATED CHARGES•TASKS $6,110 'AV I- PRFPARF A RPM RIQF TXF RFCUI IN OF THE RAIF CTIIOY AND ATIFM)orYrommiss10NMFFPNss 6.1 Prepare a Dart Report of the Rate Study. 2 8 5 16 62 Review the Draft Report Mlh Cry of Ocoee staff. 2 2 0 4 6.3 Make adjustments based upon input from Cky of Ocoee staff and prepare a Final Draft Report of the Rate Study. 1 4 2 7 6.4 Review the Final Draft with City of Ocoee Management. 2 2 0 4 5.5 Make adjustments based upon input from City of Ocoee staff and prepare a Final Report oftbe Rate Study. 1 2 2 5 6.6 Attend meetings to present the results of the Rate Study to the City Commission,to include: a. One Commission workshop 2 2 0 4 b. One Commission Meeting 2 2 D 4 c. One Rate Hearing 2 2 0 4 OrAL ESTIMATED MANHOURS.TASK 6 14 24 10 48 OTAL ESTIMATED CONSULTING FEE.TASK $2.310 ¢,760 $4130 $6,STIM164 OVAL ESTI EXPENSES ARGSK.B 3W% $164 OTALE4IMATEO CMARGES�TAS(8 $6,634 CITY OF OCOEE FY 2003 WATER AND WASTEWATER RATE STUDY PROJECT WORKMAN&COST ESTIMATE D A Prnparedbr Burton&4sToeules i1$C4�14 ,.aJaLri$JC{,6 ESTIMATED MAN-HOURS hqw rvgw tow PROJECT TASKS Principal u gae HouM nle-> 5m5 ro na Pr 5w 'OTAL ESTIMATED MAN-HOURS WORK ELEMENT II 36 111 14 161 'OTAL ESTIMATED CONSULTING FEE-NORK ELEMENT:I $5940 $12,765 $560 $19,265 ESTIMATED EXPENSES-WORK ELEMENT II 3W% _ $578 OTAL ESTIMATED CHARGES•KCRK ELEMENT II $19.643 DIAL ESTIMATED MAN-HOURS-TOTAL PROJECT 57 161 14 232 OTAL ESTIMATED CONSULTING FEE.TOTAL PROJECT $9405 $18.615 $560 $28.480 ESTIMATED EXPENSES•TOTAL PROJECT SN% _ $854 'OTAL ESTIMATED CHARGES.TOTAL PROJECT S29.334 :CURSE BURTON&ASSOCIATES amwnsa and Strong ryvannpv.4rc4 SanapnTenonary anent F OLxtyn 2aP3 Water and warrantor Fay SwyrlrPr 2I5/2003 0