Specifications include, but are not limited to: Contractor will complete the following tasks: 3.1 Project Initiation Workshop 3.1.1 Conduct a workshop with city staff to confirm study objectives; identify city, industry, and department fiscal objectives; establish communication protocols; discuss the study approach; establish a schedule to complete each task group; assign responsibilities; provide a request list of relevant financial, operating, customer demographic and usage data; review the MS Excel-based proforma, revenue forecast, and rate-related models format; and discuss the expected deliverables for each task group. This meeting may be conducted via virtual meeting application. 3.2 Financial Plans 3.2.1 Review each system’s 10-year Financial Plan, including the financial assumptions for system growth, customer usage, operating expenditure and economic factors and other relevant information that was used to develop the plan; 3.2.2 Evaluate and recommend modifications to the methodology used in the financial model including evaluating each of the following data components: revenues from charges and other revenue sources; operation and maintenance costs; capital improvement costs; and debt service; 3.2.3 Evaluate the plans for compliance with City’s ordinances and fiscal policies and achieving Water Services fiscal objectives; 3.2.4 Determine the annual rate revenue adjustments needed to meet the financial targets over the first five-year period; and 3.2.5 Calculate for analysis purposes only, Net Operating Revenues for debt service coverage ratio tests and determine if the Net Operating Revenues are sufficient to pay all debt obligations as set forth in the bond documents and covenants. 3.3 Cost of Service – Water System 3.3.1 Compile system data to determine the cost to provide the service in accordance with accepted methods of the American Water Works Association; 3.3.2 Allocate operating and capital costs to the functional cost components by base, extra capacity, and customer; 3.3.3 Review customer class categories and rate tiers to determine their necessity and sufficiency based on number of customers, range of usage volume, and similarity to other classes; 3.3.4 Calculate annual units of service for each class; and 3.3.5 Distribute functionalized costs to customer classes in proportion to class units of service. 3.3.6 Compile operating and maintenance expenses, and capital data for groundwater pumping to determine the cost to provide the service component...
