HomeMy WebLinkAbout7-1,Attachment HDR Rate Study Review and UpdateAttachment 1
Truckee Donner
Public Utility District
Proposal to Update the
PUD's Water Rate Study
July 2013
Prepared by
HDR Engineering, Inc.
July 29, 2013
Mr. Robert Mescher
Treasurer and Administrative Services Manager
Truckee Donner Public Utility District
11570 Donner Pass Road
Truckee, California 96161
Subject: Proposal to Update the PUD's Water Rate Study
Dear Mr. Mescher:
HDR Engineering, Inc., (HDR) proposes to update the Truckee Donner Public Utility District's
(PUD) water rate study. The PUD is in the process of preparing its budget for the two-year
period of 2014 and 2015. At the same time, the District's water metering program is nearing
completion and movement towards more volume -based rates is appropriate. HDR conducted
the previous comprehensive water rate study for the PUD and this proposed study is an update
of that prior water rate study for the PUD.
This study will take advantage of HDR's prior study efforts and leverage off of that study by
updating the rate model for the prior study. However, now that the PUD has more metered
customers and improved consumption data, this water rate study update will focus on the
equitable allocation of the PUD's water revenue requirement using historical metered
consumption data, along with the development of water rate designs which transition the PUD
to more volumetric rates, while attempting to maintain the attribute of revenue stability.
For this study, HDR's proposed Project Manager will be Shawn Koorn. Shawn was the Project
Manager for the PUD's last comprehensive water rate study. Shawn is highly experienced in
water utility rate setting and nationally recognized for his expertise.
We appreciate the opportunity to provide this proposal to the PUD. We look forward to
discussing our proposal with you. Should you have any questions about our approach to this
project or any information contained herein, please call me directly at (425) 450-6366.
Thanks again for the opportunity to propose on this project.
Sincerely yours,
HDR ENGINEERING, INC.
, - 5�L- Lk/ //�-
Shawn Koorn
Associate Vice President
HDR Engineering. Inc. I 500 1081h Avenue NE I Phone (425)450.620C
Suite 1200 Fax: (4251453.7107
Bellevue. WA 98004 5549 wwvv.hdnnc.com
Attachment 1
' Scope of Services
Introduction
Truckee Donner Public Utility District (PUD) has requested technical assistance in updating
their comprehensive water rate study. At the end of the rate study update, water rates will be
recommended that meet the financial and rate design objectives of the PUD and are cost -
based and equitable. Provided in this section is a detailed discussion of the scope of services
to conduct the PUD's water rate study update.
Overview of a Comprehensive Water Rate Study Update
A comprehensive water rate study is generally comprised of three interrelated analyses: (1) the
development of revenue requirements to determine adequate funding levels; (2) a cost of
service analysis designed to understand the cost differences associated with serving various
types of customers; and (3) a rate design analysis that establishes a cost basis for setting fixed
and variable rates. The update of the PUD's water rate study will address each of these
technical analyses to establish the final proposed recommendations.
Scope of Services
Provided below is a detailed discussion of the scope of services for the PUD's water rate study
update. Our proposed scope of service has been developed based upon our limited
understanding of the PUD's needs, and HDR is willing to modify our scope of services to better
meet those needs.
Task 1—Project Kick -Off Meeting
Task Objective. Bring the HDR project team and PUD management and staff together to gain
an understanding of the goals, objectives, issues, and concerns related to the study.
HDR has worked extensively with the PUD in the past. Given that, the initial project kick-off
meeting will focus on overall goals and objectives for this study, while at the same time
discussing issues and concerns that either party may have. Given the tight project time
schedule, it is proposed that the initial project meeting be a conference call.
Expected PUD Staff Support for Task 1:
Have key management/project team members participate in a conference call.
Confirmation of the PUD's goals and objectives for the study.
Deliverables as a Result of Task 1:
- Identification of objectives, issues, and concerns by both parties.
Task 2—Data Collection
Task Objective. Provide a written data request detailing the data required to complete the
study.
HDR will provide a written data request to the PUD prior to the study kick-off meeting so that it
Detailed Scope of Services 2
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Attachment 1
can be discussed at the meeting and problem areas quickly resolved. The data and
information requested for this study should be, for the most part, readily available information
(e.g., financial, statistical, customer, etc.). Given the short timeline for this study, it is important
that the PUD provide a timely response for the data requested.
Expected PUD Staff Support for Task 2.•
Gather the data requested in the written data request provided by HDR. (Note: typically
requires approximately 20 to 30 hours of staff time to provide).
Deliverables as a Result of Task 2.•
An initial written data request to the PUD.
Identification of data constraints.
Task 3—Revenue Requirement Analysis
Task Objective. Using the existing water rate model, update the District's revenue requirement
analysis for a five year period, focusing primarily on 2014 and 2015. The revenue requirement
analyses will establish the cost -based `level' of revenue to be collected from rates, and, if
necessary, a plan to transition rates to cost -based levels.
The development of the water revenue requirement analyses is the first major analytical
portion of the comprehensive rate study process. This portion of the study entails reviewing
the various revenues and comparing them to the expenses for the utility. This task considers
the prudent and proper funding for 0&M and capital expenditures, and determines the need for
any rate adjustments over the time period selected.
The various steps involved in developing the revenue requirement analysis are described
below.
Step 1 - Selection of a Test Period
A "test period" refers to a time frame of reference for the accumulation of revenues, expenses,
and consumption data. In this case, a five-year projected time period would be recommended.
By reviewing costs over an extended time frame, the PUD can determine if any major rate
impacts are on the horizon and potentially take steps today to help minimize future impacts
(e.g. rate adjustment transition, accumulation of capital reserves, etc.).
Step 2 - Method ofAccumulatingCosts
The methodology used by most municipal utilities to establish their revenue requirement is the
"cash basis" approach. This is the methodology used in the prior rate study.
Step 3 - Accumulation of Revenues and Expenses
Revenue requirements are composed of two major types of costs; operational and capital
expenses. The operational costs are generally projected from
historical or budgeted costs, using escalation factors for future
costs, and adjusted for any known changes in operations (e.g.,
changes in personnel, operating costs, growth/expansion, etc.).
HDR will begin with the PUD's most recent operating budget and
project costs in the future using escalation factors for the various
types of costs that the PUD incurs (e.g. labor, benefits, electricity,
chemicals, etc.). Costs will also be analyzed and adjusted for
"... consideration must
be given to maximizing
the capital improvement
expenditures, while
minimizing rates to the
utility's customers."
Detailed Scope of Services 3
IDR Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
changes in service levels.
While the projection of the operational costs is fairly straightforward, the capital cost
projections are generally the focus of the analysis. Similar to the prior water rate study, HDR
will use the analytical framework contained in the current water rate model to project the
funding and financing of the PUD's capital plan. The capital improvement analysis is
developed on a year -by -year basis. The capital projects are listed by year with the estimated
(planned) outside funding sources for each project. For purposes of projecting the capital
improvements funded from rate revenues, HDR recommends, at a minimum, a funding level
that is greater than or equal to annual renewal and replacement needs. This approach is
consistent with the prior water rate study.
Step 4 - Financial Planning Criteria
In development the revenue requirements, a number of financial planning aspects or criteria
are taken into account. These include items such as debt service coverage ratios and
maintenance of adequate reserve levels. HDR will develop the revenue requirement analysis
to be consistent with the PUD's financial policies and the financial planning criteria contained
within those policies.
Step 5 - Summarize the Results and Develop Rate Transition Plan
The revenue requirement analysis is designed to provide an understanding of the total costs to
operate the utility from year to year. While the analysis is very detailed, an important step is to
summarize those results and findings into an "easy to understand" format. Similar to the prior
water rate study, the results of the revenue requirement analysis are summarized both
numerically and graphically. HDR will develop summary tables for the revenue requirement
analysis that should provide easy to understand findings and results.
Finally, an important element of the study is the potential need for a rate transition plan. At
this time, a rate transition plan does not appear to be an issue. However, if needed, HDR will
develop a rate transition plan that may cover up to a five-year period.
Expected PUD Staff Support for Task 3.-
Provide "as needed" assistance to clarify the PUD's data and information as it relates to
developing the revenue requirements.
Provide "as needed" data refinements or additional data needs as determined during
the process of developing the revenue requirements.
Participation in a conference call to review the draft revenue requirement analysis.
Deliverables as a Result of Task 3.-
Water revenue requirement analyses for a five-year period that considers prudent
funding levels for operating and capital needs.
A capital financing plan within the revenue requirement analysis, utilizing the PUD's
current capital plan, which attempts to maximize capital expenditures while minimizing
the rate impacts to customers over time.
If needed, a transition plan to "phase in" any needed rate adjustments.
Recommendations regarding key financial indicators (debt service coverage, capital
funding/replacement through rates, reserve levels, etc.).
A conference call to review the draft results of the revenue requirements.
Detailed Scope of Services 4
LDR Truckee Donner Public Utility District - Water Rate Study Update
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Task 4—Cost of Service Analysis
Task Objective. Develop an average embedded cost of service analysis to equitably allocate the
revenue requirements to the various customer groups served by the PUD.
A cost of service analysis is used to equitably allocate the PUD's water revenue requirements
between the various customer classes of service (e.g., residential,
commercial). For purposes of this study, HDR will utilize the "in simplified terms, a
analytical framework and cost of service methodology established cost of service analysis
in the prior comprehensive water rate study. As will be recalled, attempts to equitably
the prior cost of service study lacked significant metered allocate the revenue
information for residential customers. As a result, HDR estimated requirements between
the usage characteristics for a major portion of the PUD's the various customer
customers. In contrast to the prior study, the PUD has now classes of service..."
metered the vast majority of customers and has collected
consumption information for those customers. This additional consumption data and
information will greatly improve the overall confidence in results.
The PUD is also interested in examining the relationship of fixed and variable costs for
purposes of designing rates. The cost of service analysis segregates costs into various cost
components and provides average unit costs which are helpful in designing final proposed
rates.
A brief discussion and overview of the major steps of the cost of service is provided below.
STEP 1 - SELECT/ON OF TESTPER/OD; A cost of service analysis typically reviews a one- or two-year
time period, or the period over which rates will be established. For purposes of this study it is
assumed that the 2014 revenue requirement will be allocated within the cost of service.
STEP 2 - DETERMINATION OF CLASSES OF SERv/CE." Classes of service refers to the grouping of
customers for purposes of allocating costs. The PUD's prior water cost of service analysis
established the various customer classes of service. HDR does not anticipate the need for any
modifications to the cost of service methodology to either consolidate or expand the customer
classes of service. HDR will review with the PUD the final classes of services for cost allocation
purposes.
STEP 3 - FUNCT/ONAL/ZAT/ON AND CLASSIFICATION OF EXPENSES." Fu n cti o n a I Izat i o n refers to the
arrangement of cost data into its basic cost categories (e.g., source of supply/production,
treatment, transmission, distribution, etc.). The PUD's existing system of accounts
accomplishes the functionalization of plant in service and expenses (revenue requirements).
Classification involves determining whether each specific cost or account item was incurred to
meet a consumer's commodity (flow), capacity, fire protection, or customer -related need. In
the PUD's prior cost of service study, HDR classified both plant and expenses, and will use
those prior classifications as the starting point for the update of this study.
STEP 4 - DEVELOPMENT OF ALLOCATION FACTORS,To allocate the classified expenses, allocation
factors will need to be developed. For each classified cost, an equitable method will be
developed to allocate each specific cost to the various customer classes of service. As was
noted above, the PUD now has consumption data for those customers that were previously un-
metered. HDR will review this data and utilize it in the development of the allocation factors.
STEP 5 - ALLOCAT/ON OF PLANT AND EXPENSES." Given the classification of plant and expenses
L Detailed Scope of Services 5
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Attachment 1
(revenue requirements), along with the development of allocation factors, the costs can be
allocated to the various customer classes of service.
STEP 6 - SUMMARY OF THE COST OF
SERvicE- The previous step
Current Vs. Proposed Unit Cost $/ccf
allocated plant and expenses to
$T00
$6.00
each customer class of service.
$5.00
From this process, a summary
$4.00
page can be developed that
$300
compares the difference between
$2.00
the current level of rate revenues
$1.00
$0.00
received from each class of
Residential Multi -Family Commercial Nonmetered
service, and the allocated cost of
Proposed Revenue$/ccf ■ Current Revenue$/ccf
service for each class. The
The summary page graphically presents the difference
summary page provides an
between the current level of rate revenue and the allocated
important measure of the equity
cost of service by customer class.
of the current rates in
comparison to the cost of service.
In addition to the summary page, average unit costs (i.e.,
cost -based rates) are also developed for each customer class of service. These unit costs are
important to the development of final rate designs. Average unit costs provide the PUD with an
understanding of the cost/rate relationship between fixed and variable costs.
Expected PUD Staff Support for Task 4.-
Review with HDR the draft results of the cost of service analyses.
Provide "as needed" data refinements or additional data needs, as determined, during
the process of developing the cost of service analysis.
Deliverables as a Result of Task 4.•
A "fair and equitable" allocation of the revenue requirements to the various classes of
service for the PUD's water utility.
Cost of service average unit costs (cost -based rates) for each customer class and utility.
A conference call to discuss the draft results of the cost of service analysis.
Task 5—Rate Design Analysis
Task Objective. Utilize the cost information developed as a part of the previous tasks to develop
water rate design alternatives for consideration and possible adoption by the PUD. Review
alternative rate designs that meet the PUD's rate design goals and objectives (e.g., revenue
stability, conservation, etc.).
A starting point for the rate design process is to gain an understanding of the rate design goals
and objectives the PUD is striving for in this study. With the addition of historical metered
consumption data the PUD can begin moving towards rate designs based more on
consumption instead of the base charge. At the same time, the PUD is concerned about the
issue of revenue stability. This task will explore these key issues.
Most recently, one of the key drivers for many utilities reviewing their rate structures has been
revenue stability. As per capita consumption has declined, more emphasis has been placed
upon the fixed charges of the utility. In the case of the PUD, revenue stability has been
accomplished by flat rates for un-metered customers. As meters have been installed and
`� Detailed Scope of Services 6
` Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
consumption data has been collected the rate design goals will trend towards a move towards
more consumption -based rates. Eventually, the PUD may be required to meet the California
Urban Water Conservation Council (CUWCC) BMP 1.4 on conservation -based water rates. The
current BMP states that no greater than 30% of the revenue derived from a rate structure
should be from fixed charges. While this BMP has recently come under greater scrutiny and
discussion by utilities, it is likely that some variation of it will remain in the future. Given that,
it would seem appropriate for the PUD to begin discussing this issue and relative timeline for a
transition to more consumption -based rate designs. For purposes of this study, it is anticipated
that this study will provide the framework for the long-term rate structure and a way to slowly
transition.
The other key aspect of moving customers from a relatively flat rate to more of a consumption -
based rate is change (decline) in usage as the customer bills become more sensitive to
consumption. While the PUD has consumption data for a recent historical period, the
consumption was not subject to an aggressive pricing discipline (i.e., consume more; pay
more). Therefore, in developing the PUD's rate for this time period, careful consideration will
need to be given to any price responsiveness to the rate designs. As the PUD moves to more
consumption -based rates, it is anticipated that total consumption will decrease.
In developing the rate design alternatives, the average unit cost information from the cost of
service will be utilized as a starting point. For each customer class of service, HDR will provide
up to two rate alternatives that are designed to meet the PUD's rate design goals and
objectives and industry "generally accepted" rate -setting practices. For each rate design
developed, a bill comparison and graph will be provided that shows a comparison between the
present bill and the proposed bill at various levels of usage. Bill comparisons are useful in
assessing the potential impacts to a wide variety of customers.
At the conclusion of this task, HDR will provide a recommendation on the rate structure and
recommended rates for adoption.
Expected PUD Staff Support for Task 5.•
Discuss the PUD's rate design goals and objectives with HDR.
Review rate design alternatives for appropriateness, provide direction for preferred
alternatives.
Deliverables as a Result of Task 5.-
Review of the issue of revenue stability and consumption -based rates.
Up to two rate design alternatives per customer class of service.
Bill comparisons and graphs for the rate design alternatives developed.
Recommended rate structures and proposed rate designs
Task 6—Written Report
Task Objective. Provide a written report to summarize the findings, conclusions, and
recommendations of the comprehensive water rate study
Upon completion of the rate analysis, HDR will develop a draft written report of the water rate
study. The written report is intended to be comprehensive in nature and document the
activities undertaken as a part of the project, along with our findings, conclusions, and
recommendations. HDR will provide a PDF copy of the draft final report to the PUD for its
`� Detailed Scope of Services 7
` Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
review and comment. Comments, suggestions, or corrections from the PUD concerning the
draft final report will be incorporated into the final report. Five (5) copies of the final report will
be provided to the PUD, along with a PDF version.
Expected PUD Staff Support for Task 6.-
Review and comment on the draft written report.
Deliverables as a Result of Task 6.-
An electronic copy of the draft report.
- Five (5) copies of the final report.
Task 7—Public Presentations
Task Objective. Provide effective public presentations of the findings, results, and
recommendations of the water rate study.
For this study, HDR has proposed two (2) public meetings:
Review of the Draft Results of the Study
Review of Rate Design Options/Public Hearing (Prop. 218 Hearing)
The PUD has specified a very short timeline for the completion of this study. Given the timing,
HDR has included up to two (2) public meetings with the Board. The first meeting would be to
present the draft results of the study to the Board for policy direction. The second meeting
would be to present the results of the study at the Prop. 218 hearing. For these meetings, HDR
will prepare all handouts and the HDR Project Manager (Shawn Koorn) will provide the
presentations. Public presentations beyond the two noted above will be provided on a time
and material basis.
Expected PUD Staff Support for Task 7-
Review and comment on any proposed handouts for public meetings.
Deliverables as a Result of Task 7-
Two (2) public presentations to present the findings, conclusions and recommendations
of the study.
Task 8—Computer Models
Task Objective. Provide a copy of all rate models developed as a part of this study.
The updated financial/rate model developed for the PUD will be provided at the end of the
study. This study has proposed updating the prior water rate model.
Expected PUD Staff Support for Task &
None
Deliverables as a Result of Task 8.•
A copy of the computer spreadsheet model used to develop the PUD's study.
This concludes HDR's discussion of the scope of services for the PUD's study. The above scope
of services may be modified to meet the specific needs of the PUD.
`� Detailed Scope of Services 8
` Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
Summary
This section of the proposal has provided a detailed scope of services to conduct the PUD's
updated water rate study. HDR has attempted to provide a detailed discussion of our
understanding of the PUD's current issues and technical needs.
L Detailed Scope of Services 9
1 DJ Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
Section 2
2.1 Introduction
To be successful, the project team must successfully combine a number of people with
different backgrounds and abilities into a well-rounded, comprehensive team. We believe that
is the strength of the proposed HDR project team. This section of the proposal will discuss
HDR's proposed project team for the PUD's study.
Project Team Key Personnel
For the PUD's study, Shawn Koorn will be the proposed Project Manager. Shawn was the
Project Manager for the PUD's prior comprehensive water rate study. Assisting Shawn will be
Tom Gould. Tom is nationally recognized for his expertise in financial planning and rates and
will provide quality control/quality assurance for the study. Provided below is a more detailed
discussion of Shawn and Tom's qualifications and experience.
2.2.1 Shawn Koorn, Project Manager /Senior Financial Analyst
Shawn Koorn will be the Project
Manager for the District's study. Shawn
specializes in the areas of financial
planning, cost of service and rates. He
has been a Project Manager for
numerous water rate studies. He is
very effective in discussing and
presenting the results of rate studies. Shawn is nationally
recognized for his expertise in rate setting and in the past
has taught the AWWA 3-day Financial Management
seminar. Shawn is a contributing author to the AWWA M-
54 manual on setting rates for small systems. Shawn has recently worked on a number of
local rate studies, including studies for South Tahoe PUD, Tahoe City PUD, and Alpine Springs
County Water District. Shawn is located in the Bellevue office of HDR.
2.2.2 Tom Gould, Project Principal / Business Leader of Finance and Rates
Tom Gould, a vice President at HDR
will provide overall quality control for
this project. Tom is a nationally
recognized expert in the area of cost of
service and rate setting. With over 33
years of experience in setting rates, he
has been the project principal for
numerous water, wastewater, solid waste, electric and
natural gas rate studies. He is currently an instructor for
the American Water Works Association (AWWA) 3-day
Financial Management Seminar. He is also a member of
the AWWA Rates and Charges Subcommittee and a contributing author to the AWWA M-34
and M-1 manuals on water rate setting. Tom is located in HDR's Bellevue, Washington office.
LTDf1� HDR Project Team 10
1 Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
w
3.1 Introduction
Section 3
This section of the proposal will provide an overview of the project time schedule, along with
the proposed hourly billing rates and fees for this study.
Project Time Schedule
The PUD has indicated the desire to adopt rates in early 2014. More specifically, the PUD has
provided a timeline of late August 2013 for possible Board approval of the study and a
presentation of HDR's recommendations in late September or early October. This is a very
compressed time schedule, even when considering an update of an existing rate study.
To meet this time schedule, HDR would suggest providing the written data request (Task 2) to
the PUD prior to the Board approval for the study. This will provide the PUD with a slight "head
start" on the study, and hopefully, all of the data and information needed for the study will be
available by approval of the study by the Board. To meet the timing of the presentation to the
Board, the analysis and rate designs will need to be completed by early September. While not
impossible to meet this schedule, it is important to recognize that this schedule provides no
"slack time" for any data issues or indecision.
The development of the draft written report (Task 6) will likely occur after the presentation of
the results and recommendations to the Board. HDR would anticipate 10 to 14 business days
to complete a draft of the written report.
Hourly Billing Rates and Project Participation
An important element within our proposal is the level of participation and commitment by the
Project Manager and other key personnel. Provided below is a summary of the labor effort and
level of commitment by individual for the PUD's study, along with the proposed hourly billing
rate for the individual. These hourly billing rates will be in effect during the course of the study.
Individual
Project Role
$/Hour Rate
% of Total
Shawn Koorn
Project Manager
$215.00/hour
32%
Tom Gould
QA/QC
$275.00/hour
8%
Judy Dean
Senior Financial Analyst
$165.00/hour
54%
Support Staff
Project Assistance
$115.00/hour
6%
The above noted individuals will provide the bulk of the required efforts for this project. Should
additional personnel be required for a specific issue, HDR has additional personnel that can
address financial, rate, resource, or engineering issue that may arise.
Based upon the current hourly billing rates and the estimated labor needed to conduct each
task, HDR established the fees shown in Table 3-1 for the PUD's water rate study update.
Project Time Schedule and FeesLDR 11
Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
Total
Labor:
Task 1: Project "Kick -Off" Meeting
$985
Task 2: Data Collection
1,090
Task 3: Revenue Requirement Analysis
4,750
Task 4: Cost of Service Analysis
4,320
Task 5: Rate Design Analysis
7,205
Task 6: Written Report
3,510
Task 7: Public Presentations
4,350
Task 8: Water Rate Model
N/C
Grand Total Labor
$29,060
Expenses:
Total Expenses
$2,665
Grand Total "Not to Exceed" Fees $28,875
The above fee estimate is based upon the scope of services previously presented. Should the
PUD request any additional services under this contract, the services will be provided at the
hourly billing rates stated above. A more detailed estimate developed by task and by
individual is provided at the conclusion of this section.
3.4 Proposed Method of Payment
The method of payment for this study shall be a fixed fee, lump sum payment approach with a
not to exceed of $28,875.00. The total fees associated with this study shall be divided into
three (3) equal payments ($9,625.00/installment). The installments will be billed on a monthly
basis. The final payment will be invoiced at the conclusion of the study. The PUD may hold the
final payment until the delivery of all work products within the agreed upon scope of services.
Final payment will not be unreasonably withheld by the PUD.
Project Time Schedule and Fees 12
LDR Truckee Donner Public Utility District - Water Rate Study Update
Attachment 1
Shawn
Tom
Judy
Admin
Total
Task Task Description
Koorn
Gould
Dean
Assistance
Project
Hourly Billing Rates
$215.00
$275.00
$165.00
$115.00
1
Initial Project Meeting
Hours -
2
1
1
1
5
Labor Cost
$430
$275
$165
$115
$985
2
Data Collection
Hours -
2
0
4
0
6
Labor Cost
$430
$0
$660
$0
$1,090
3
Revenue Requirement Analysis
Hours -
8
1
16
1
26
Labor Cost
$1,720
$275
$2,640
$115
$4,750
4
Cost of Service Analysis
Hours -
6
1
16
1
24
Labor Cost
$1,290
$275
$2,640
$115
$4,320
5
Rate Design Analysis
Hours -
12
2
24
1
39
Labor Cost
$2,580
$550
$3,960
$115
$7,205
6
Written Reports
Hours -
4
4
8
2
18
Labor Cost
$860
$1,100
$1,320
$230
$3,510
7
Public Presentations (2)
Hours -
12
2
6
2
22
Labor Cost
$2,580
$550
$990
$230
$4,350
8
Computer Models
Hours -
0
0
0
0
0
Labor Cost
$0
$0
$0
$0
$0
Total Hours 46 11 75 8 140
33% 8% 54% 6% 100%
Total Fees $9,890 $3,025 $12,375 $920 $26,210
Expenses
Airfare (2 RT @ $450/RT) $900
Car Rental (3 days @ $95/day) 285
Hotel (3 nights @ $150/night) 450
Meals 100
Mileage/Parking 125
Technology Charges 530
Miscellaneous (phone, copies, fax, etc.) 275
Total Expenses $2,665
Grand Total Project Fee Estimate $28,875
L Project Time Schedule and Fees 13
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