Objective. The broad objectives of the fee studies are to: • Utility Rates. Adequately fund utility operations while preparing for capital costs to reduce existing deficiencies within the system and for the system to keep pace with growth. Although not desired, analysis should be done regarding the need for potential bonded debt. • Impact Fees. Calculate the maximum impact fee allowed by the Utah Code that will perpetuate the existing level of service into the future through constructing system improvements. Further, as applicable, the impact fees are to include the reimbursement to the City of excess capacity for previously constructed Capital Facilities (‘buy-in”) and the reimbursement of professional fees associated with calculating the impact fees. • Fee Studies. To calculate the maximum fee allowed by Utah Code for the cost associated with the cost to regulate, and as applicable, a disproportionate fee or a fee for an enhanced level of service. Current Scope of Services. Once under contract, the Consultant shall be required to immediately start the work associated with performing the City’s stormwater rate fee study. In performing the stormwater rate fee study, the Consultant shall gather and analyze data, conduct periodic meetings with City staff, including the City Engineer and the City’s Treasurer (a certified public accounting firm), and perform other work necessary to produce the deliverables below. The utility rate study will be based on a comprehensive review of the City’s storm drain utility funds and budgets (see Exhibit “C”), comprehensive plans, customer classes, current usage data, future planned growth, existing contractual agreements, and other factors. The stormwater utility rate study is to be performed in conformance with the following policy directions: • The recommended rate structures shall be based on cost of service, cost of planned capital improvements, and consideration of sound financial policies. • The studies shall recommend rate structures and fees that consider and make provisions for the following factors: o Current and future costs of providing utility services in accordance with established and anticipated standards, requirements, and regulations o Projected demands o Availability of supply (seasonal fluctuations and long-term availability) o Age and condition of systems o Funding requirements for all current long-term liabilities and potential debt obligations
