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• • Attachement A <br /> study, along with the current City philosophy as it relates to rate design, and <br /> past rate design practices. The rate design review will also consider any ' <br /> limitations of the City's current billing system. <br /> 1.5.2 Bill Comparisons/Rate Impact Analysis <br /> Bill comparisons will be developed for each rate design which compares the <br /> impacts of the present rate designs to the proposed rate designs. The dollar <br /> impacts along with the percentage change for various levels of usage will be <br /> shown. These types of bill comparisons are useful for presentations to the <br /> City Council and the public. <br /> 1.6 Review and Update of the City's General Facility Charges <br /> The development of cost based general facility charges (GFC's) is an important task <br /> to the overall financial stability of the utility. In short, GFC's are related to the <br /> issue of growth, who should pay or share the cost of growth, and the financing of <br /> growth related capital projects. As general philosophy, most utilities prefer to have <br /> "growth pay for growth." This statement implies cost based general facility charges. <br /> General facility charges are assessed only against new customers connecting to the <br /> system, or customers expanding their capacity beyond their original GFC capacity <br /> buy-in. The development of cost based general facility charges is a complex <br /> undertaking. The process considers both the e�risting capacity of infrastructure that <br /> is in place, along with the capital plans of the utility as it relates to growth. In <br /> essence, cost based general facility charges should collect an appropriate charge <br /> which considers both the cost of the existing available capacity, along with any new <br /> capacity which must be constructed. All costs are placed in current day dollars <br /> (inflated or deflated as appropriate). In the end, general facility charges should be <br /> developed on the basis of ineter capacity, with the GFC increasing in price in direct <br /> relationship to the capacity of the customer's meter. <br /> As a part of this task, EES will develop cost based GFC's for the water utility which <br /> are in conformance with generally accepted methodologies. The GFC's will also be <br /> developed in conformance with any applicable legal constraints or limitations. <br /> 1.7 Review of the City's Miscellaneous Fees/Charges <br /> The last area that the City requested a review was the miscellaneous fees and <br /> charges of the water utility. For the most part, the updating of these types of fees <br /> are fairly simple and straight-forward. They are generally based upon either <br /> current labor or material costs. Therefore, EES will take the current fees which are <br /> in place and update them accordingly using the City's current labor and material <br /> Scope of Services 1-ZI <br />