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5. Miscellaneous Fees <br />5. MISCELLANEOUS FEES <br />This section of the report presents the analysis of miscellaneous fees that was conducted as part of this <br />Study. <br />5.1 DESCRIPTION <br />IRCDUS currently applies miscellaneous fees for the provision of specific services to individual customers. <br />Meter installations, new account initiations, service turn-on/offs, and meter tests are examples of the types <br />of services for which IRCDUS applies miscellaneous fees to recover the costs. The intent of miscellaneous <br />fees is to ensure the recipient of the benefit of a specific service bears the costs associated with providing <br />that service or to influence or promote positive customer behavior. Revenues from these fees and charges <br />represent an average of between 3.0% and 5.0% of overall annual revenue for IRCDUS, to the extent these <br />charges are not recovering costs, the rest of the Utility's customers are subsidizing these activities caused <br />by specific customers. <br />The cost of service for miscellaneous fees are calculated by determining the costs, including both the time <br />and materials, necessary to provide the service. Identification of the type of personnel involved in providing <br />each service (i.e., meter reader, utility maintenance specialist, field inspector, customer service analyst, <br />engineering technician, and others), the materials (i.e., water meter and box, couplings, valves, and others) • <br />and vehicles and equipment used is the first step in developing appropriate fees. The personnel cost, <br />including benefits are then added to the costs of materials, vehicles, and equipment, including allowances <br />for any overhead allocations such as purchasing, warehousing, etc. to determine the charge for each <br />respective service. Figure 10 outlines this process. <br />Figure 10 - Miscellaneous Fee Calculation Process <br />Costs per <br />Hours Spent Hour (Labor, <br />per Task vehicles & <br />equipment) <br />n (Materials) E <br />To facilitate the calculations, Stantec employed a standardized cost template to provide a consistent and <br />repeatable process for assigning the activities and associated costs required for each miscellaneous fee. <br />IRCDUS staff completed the templates through a detailed review of the processes and associated costs <br />and populated the templates to reflect the types and amount of cost for each miscellaneous service <br />provided. <br />34 <br />LJ <br />