1. Sewer Service Charges a. Develop an understanding of the District’s current rate model and underlying assumptions. b. Review District’s current policies and procedures, as they affect the rate structure, including the District’s Financial Reserves Policy. c. Evaluate utility billing data from the cities of Fairfield and Suisun City. d. Review the District’s current rate structure, user categories, cost allocations, operating revenues, operating expenses, debt service requirements, and proposed Major Maintenance and Capital Improvement Program. e. Propose a new rate model or update and make changes to the current model. f. Document the findings and recommendations in a report that is compliant with Proposition 218 and best practices for municipal wastewater rate setting. This report will describe the methodology, the resulting user charges, and the reasons for any material variances and achieve compliance with District objectives as well as statutory requirements. g. Assist District staff with Proposition 218 process. 2. Sewer Capacity Charges a. Review the current Sewer Capacity Charges structure. b. Review the District’s Master Plans and Capital Improvement Program. c. Review user categories and cost allocations. d. Evaluate growth projection data from the cities of Fairfield and Suisun City. e. Review available District data on flows and loadings. f. Evaluate policies and requirements regarding the use of Sewer Capacity Charges for re-construction of capacity infrastructure that has reached the end of its service life and ensure the District’s Sewer Capacity Charge structure meets compliance with California state law, including Government Code Section 66013. g. Evaluate the impact of potential newly identified growth from within and from outside the District’s service area on the Capacity Charge strategy and on the application of the charge (i.e., should new Capacity Charges be applied across-the-board or to specific geographical areas?). h. Document the findings and recommendations in a report compliant with California State law and Government Code Section 66013. This report will describe the methodology, the resulting Sewer Capacity Charges categories and totals, and the reasons for any material variances. 3. Other Key Expectations a. Represent the District at meetings related to the cost of service and rate study, which could include workshop(s) for Board Members, management, and stakeholders such as Travis Air Force Base, Anheuser Busch, and other commercial/industrial customers. At least two meetings for Board Meetings and public outreach should be included in the proposal. b. Incorporate different external funding scenarios (e.g., SRF, WIFIA, municipal bonds, etc.) from the District’s municipal financial advisor, and determine impact on rates. At least two meetings with the District’s municipal financial advisor should be included in the proposal. c. Prepare a user-friendly rate model, preferably in Excel. The model should be capable of being used by District staff to plan future budgets and determine impacts on rates.
