Agenda Packet_2023-08-01 - Laserfiche WebLink

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• How does the nature of providing those services differ? Are there varying times to respond, staffing, equipment, etc. for each service? • What customer classes do you serve in addition to residential? • What other services are included in the Fee, if any? This process allows you to see the revenue generated for various services/customer classes versus the expenses incurred in providing those services to your customers. The outcome of this analysis then becomes the basis for the net revenue requirement used in the rate structure analysis. Rate Benchmarking To assist in the next step of rate structure analysis, we will conduct a survey of nearby comparable entities to determine the City's current and proposed charges for the average customer relative to these other entities. Rate Structure Analysis Once the cost of services analysis is complete, we will use our Rate and Fee Model to examine the City's current Fee and identify any structural adjustments to consider in developing your new user fee. We will obtain historical billing data and/or property data and analyze current billing practices. We will identify the revenue requirement based on the results of the revenue sufficiency analysis and cost of service analysis, and use this revenue requirement and the results of the billing data analysis in considering alternative rate structures. We will analyze the City's current rate structure and projected changes in customer characteristics. We examine many factors important to potential rate structure changes, such as: historical and current fee structure and billing, franchise fees and agreements, miscellaneous or one-time service fees, customer sensitivity to fee changes, projected changes in population/service levels, tonnage/volume data, and City ordinances and policies relevant to the analysis. In developing recommendations, we will also consider your desire to encourage diversion and implement new programs. Our project team will develop rate structure recommendations that comply with best practices for ratemaking and relevant legislation. During meetings with staff, we will discuss rate recommendations for your user fee and other miscellaneous fees based on the current structure and suggested adjustments. We will discuss the basis of the recommendation and test the sensitivity of the rate changes to various customer classes and demand characteristics. The goal is to develop a structure that will be easily understandable and easy to administer and that will accurately reflect the dynamics of your solid waste system while equitably distributing costs. Lifeline Rates & Policy Review As part of the rate study, we will discuss with City staff any policies/ordinances/resolutions concerning solid waste that may be out of date or no longer reflect the services you provide to your customers and additional items that could be included in your ordinances/resolutions in the future. This is an appropriate time to also discuss other City policies that can be updated or have been analyzed during the rate study process, such as lifeline rates for elderly or low-income residents, working capital reserve targets, capital/rate stabilization reserve funding, indirect administrative cost allocation to departments/funds, etc. Presentation of Results & Implementation Assistance Customer Impacts & Plan for Public Meetings A well -designed rate structure only benefits you if it is adopted and implemented. With this outcome in mind, it is important to consider the impact of recommended changes on the average customer. It is also helpful at this point to include the City Manager or other officials in City Administration in a conversation of the key issues and the basis for the recommendations prior to public meetings. This conversation allows us to get support and direction regarding key items of interest to the public and/or elected officials that may be important to gaining support. Once we have agreed on the rate/policy recommendations to be presented to the public and Council, we will begin the presentation of results. Written Narrative We will develop outputs of the assumptions and projected revenues, expenses, rate adjustments, and rate structure changes used in developing the analysis. These will be included in our draft and final technical memorandums for i��i1 14 — 72 8/1/2023