HomeMy WebLinkAbout11.a. Receive and accept the "Wastewater Cost of Service Study" prepared by Raftelis Financial Consultants, Inc.If
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: June 4, 2015
Subject. RECEIVE AND ACCEPT THE "WASTEWATER COST OF SERVICE
STUDY" PREPARED BY RAFTELIS FINANCIAL CONSULTANTS, INC.
Submitted By. Initiating Dept. /Div.:
Roger S. Bailey, General Manager Administration / Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Roger S. Bailey
General Manager
ISSUE: It is appropriate for the Board of Directors to review the "Wastewater Cost of
Service Study" recently completed by Raftelis Financial Consultants, Inc.
RECOMMENDATION: Receive and accept the report.
FINANCIAL IMPACTS
None directly by this action.
ALTERNATIVES /CONSIDERATIONS: None.
BACKGROUND: In June 2014, the District selected Raftelis Financial Consultants, Inc.
to perform a comprehensive Cost of Service study. The project consisted of six Board
meetings, including two offsite workshops with the Board of Directors where topics
including reserve policies, debt service coverage, alternate rate structures, and capital
improvement funding levels were discussed. The results of the workshops and other
financial data were used to create a 10 -year financial plan and ultimately determine the
revenue requirements for the upcoming fiscal year. The revenue requirements were
reviewed against operational and other data in order to match costs to flow and strength
characteristics and loadings and ultimately to develop updated rates that equitably
allocate costs to each user group based on the cost of providing service to that group.
The results of this work are contained in the attached report and in an electronic
financial model that staff will be able to update and use in future years.
RECOMMENDED BOARD ACTION: Receive and accept the report.
Attached Supportinq Documents:
1. Wastewater Cost of Service Study dated May 21, 2015
N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers\2015 \PP -COSS report 6 -4 -15 FINAL.docx
Page 1 of 1