Laserfiche WebLink
INDIAN RIVER COUNTY, FLORIDA <br />DEPARTMENT OF UTILITY SERVICES <br />Date: September 21, 2018 <br />To: Jason E. Brown, County Administrator <br />From: Vincent Burke, P.E., Director of Utility Services <br />Prepared By: Cindy Corrente, Utility Finance Manager <br />Subject: Comprehensive Water, Wastewater, and Reclaimed (Reuse) Water Rate Study, and <br />Water and Sewer Impact Fee Study Recommendations <br />BACKGROUND <br />On December 20, 2016, the Indian River County Board of County Commissioners (BCC) approved several <br />items in regard to the North County Septic to Sewer (52S) Phase 1 project. One of those items included a <br />decision to conduct an updated rate study to look at recouping construction costs as well as the future <br />renewal and replacement (R&R) costs. Indian River County Department of Utility Services (IRCDUS) has <br />not conducted a comprehensive rate study since 1999. During the past nineteen years, IRCDUS has <br />steadily grown, along with related revenues and operating expenses. With this in mind, it was important <br />to evaluate the appropriateness of existing rate structures to determine whether the existing rates <br />provide sufficient revenues for near and long-term fiscal needs. It was also important to include an <br />analysis of impact fees and line extension charges in order to ensure these fees are meeting the capital <br />costs affiliated with the related growth. <br />On July 18, 2017, the BCC approved the award of two professional Services Agreements with Raftelis <br />Financial Consultants, Inc. The first agreement provided for conducting a Comprehensive Water, <br />Wastewater, and Reclaimed Water Rate Study. The study was to include: <br />• A review of customer data to be used in developing the user rates and charges <br />• A review of utility financial information to use as the basis for revenue requirements <br />• An allocation of fiscal requirements based on cost of service principles <br />• An update to the ancillary services list to current time and material costs <br />• A five-year pro forma operating statement <br />• A capital improvements plan (CIP) funding module to allow for reviews of alternative <br />funding sources <br />• A uniform S2S policy <br />• A final report <br />263 <br />Page 1 of 9 <br />