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<br />with the City to determine the revenue requirements between the water and wastewater utility and <br />for each customer class, and water use blocks. <br /> <br />1.8.4 Once the initial model framework is developed, calibrate the model against the last full fiscal <br />year's data to see if the model reasonably predicts known and/or budgeted revenues. Once assured <br />of reasonable model calibration, the Consultant will then investigate various options for modified <br />rate structure designs (as discussed below), or if the current rate structure design is deemed adequate, <br />simply consider changes in service pricing levels. <br /> <br />1.9 TASK8-RATEDESIGN <br /> <br />The Consultant will: <br /> <br />1.9.1 Based on the earlier workshop discussions with City staff about legal/regulatory requirements <br />or guidelines and considering various ease of administration, ease of communication, socioeconomic <br />effects, and other considerations, work with the City to identify alternative rate designs that would <br />meet industry standards, legal tests, and City policy goals. <br /> <br />1.9.2 In addition to the legal and regulatory issues discussed in Section 1.2 (Task 1), consider the <br />standards contained in various industry publications, such as: <br /> <br />a. A WW A Mannuals <br />b. M-l Water Rates <br />c. M-26 Water RateslRelated Charges <br />d. M-29 Water Utility Capital Financing <br />e. M-35 Revenue Requirements <br />f. A WW A REsearch Foundation Papers <br />g. TML Annual Water and Wastewater Rate Surveys <br /> <br />1.9.3 In developing rate designs for the City, consider in-city, out-of-city, retail service <br />considerations, and "specialty rates" for wholesale or wheeling services, reclaimed water sales, and <br />wastewater service-only rates. The Consultant will include in the water rate design, examinations <br />of various alternative minimum (demand) charges and block definitions and block pricing for each <br />class, where appropriate. For Wastewaterrate design, the Consultant will also consider alternative <br />minimum (demand) charges, methods of charging for base water use (Le., a cap, avg. winter use <br />approach, or separate metering) as a wastewater service volume proxy, and appropriate charges for <br />volume and strength constituents. <br /> <br />1.9.4 Identify suggested water and wastewater rate structures and the rationale for the <br />recommendations as well as compare sample water and wastewater bills resulting from application <br />of the current and suggested rates with sample bills of other near-by cities and towns with <br />comparable water supply and wastewater discharge situations. <br /> <br />HDRRate Design.wpd <br /> <br />7 <br />