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