Calleguas is seeking proposals from qualified firms to conduct a comprehensive cost of service study, derive new fixed rate utility charges, and update the District’s Reserve Policy. The study will provide an independent assessment of the District’s cost to provide water service and to properly allocate those costs to the appropriate rates and charges based on sound cost of service principles. Calleguas's goal is to develop rates and charges which are fair, comply with applicable regulations, and promote its mission of providing a reliable supplemental water supply to its service area in a cost‐effective manner. The consultant shall review the methodology and development of the revenue requirements to be used in the Study and make recommendations for adjustments to reflect the District’s current costs of service, customer usage patterns, and other factors necessitating change. The scope of services will include, at a minimum, the following tasks. The consultant may recommend revising, adding to, or otherwise modifying these tasks as they see fit to support the goals of the study: Review current revenue requirements, including, but not limited to, water charges, SMP Discharge, Capacity Charge, Annexation Fee, Wheeling Charge, and other miscellaneous fees, and propose any necessary modifications. Review reserve policy, including operating and construction reserves, and recommend changes to improve the policy and ensure it is consistent with industry standards. Develop a policy to create and fund a rate stabilization reserve. Evaluate all current costs and make a recommendation regarding how they should be allocated to various rates, charges, fees, and other revenue streams. Provide alternative fixed rate structures for the potable water system for consideration by Calleguas to recover up to 20% of our fixed costs on fixed charges. Provide recommendations regarding the rate structure design. Provide recommendations for changes to cost tracking and accounting procedures to more effectively tie costs to various categories of revenues. Review the method for calculating the fee for wheeling water through Calleguas's potable water system. Propose changes, if appropriate. Evaluate the current capacity charge based on the peak week of deliveries Evaluate the formula for calculating annexation fees and provide any recommendations for changes to the rate structure design. Confirm that the recommended rate structures comply with all laws, regulations, and policies. Prepare and provide the District with rate models for the proposed water charges in an Excel format that may be used by District staff and train District staff in the use of these models. The District shall not be required to pay consultant for licensing fees and/or setup/updates for the use of the rate models.
