09.02 - Utility Rate Study Proposals

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comprehensive solutions for utility enterprises. Jessica Cook, Financial Advisor and Elizabeth Diaz, Senior Financial Analyst, members of this Utility Rate Study Work Group, have worked with city staffs on the above projects and would be primarily responsible for updating the City of Pequot Lakes Utility Rate Analysis, prepared by Ehlers in 2007. In the past year, Jessica Cook and/or Elizabeth Diaz have completed utility rate study updates for the Minnesota cities of Edina, Chanhassen, Carver, Brooklyn Park, Inver Grove Heights, Buffalo, Two Harbors, and the City of Carbondale, Illinois. A sample of the utility rate study Executive Summary for the City of Two Harbors is attached in Appendix B. Ehlers assures the completeness of its analyses through an internal quality control process that includes two separate reviews by members of our experienced Utility Rate Study Work Group. The quality control process assures accuracy and completeness of the worksheets, documentation and the final report. Meeting client's needs and tailoring our work products to serve those needs is a core belief at Ehlers. We will work to meet the needs of the City of Pequot Lakes. Our Approach Ehlers has developed a model for completing this type of analysis. Our process is flexible enough to tailor it to meet the needs and the special circumstances of the City of Pequot Lakes. The analysis will be conducted in the following steps. Step 1. Solicit feedback on concrete objectives that the City wants to achieve with the study At our initial meeting, Ehlers will work with staff to complete a Policy and Objectives worksheet to make sure we fully understand the utilities' financial situation, the City's short and long -term goals, and any special issues or large capital project the utilities re facing. Step 2. Gather data from City staff Rate studies are a team effort. Ehlers will work with you to ensure that we receive the necessary data for the study. For a listing of materials / services to be provided by the City in this step, please see `Appendix A'. Step 3. Complete a review of the City's capital improvement plan • Use information from City staff and engineering firms to compile a detailed Capital Improvement Plan for all utilities included in the rate study • Ensure all utility related costs, such as equipment, public works buildings and road improvement projects are included in the Capital Improvement Plan. • Identify, based on information provided by the City and consulting engineer, those projects that will be a result of increased demand from proposed and future development or redevelopment Proposal for a Utility Rate Analysis to the Page 3 City of Pequot Lakes, Minnesota January 2012