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MEMORANDUM <br /> <br />CWS File #07-270 <br />To: Ms. Tammie Petrone, CWCB <br />From: Steve Nguyen, P.E. <br />cc: Wes LaVanchy, Carl Nelson, Julie Pasillas, Dave Lindsay, Webb Jones <br />Date: 8-8-08 <br />Subject: 50% Progress Report for Town of Firestone 2008 Rate Study <br />Clear Water Solutions has been working with the Town of Firestone to develop a rate <br />study. The Town completed a very informal analysis in 2003, which determined their <br />current rates. The Town is evaluating actual water use and projected expenditures to <br />established rates based on cost of service. <br />Two meetings have been completed to date: one to solicit information and staff input <br />regarding cost-of-service, recoverable costs, billing practices, customer data, capital <br />needs, and rate design and a second kick-off pres entation to the Town staff and Board. <br />The kick-off presentation was held on J une 26, 2008 and outlined general big picture <br />concepts for the rate study. We reviewed our conservation goals established in our <br />2007 Water Conservation Plan and also stress ed the need to meet some of our future <br />demand through water conservation. <br />Based on input provided by the Town staff a nd Board, the Town’s existing rate model <br />has been customized and tested for the Town of Firestone. The model has been <br />modified to include actual and budgeted ex penditures from 2005 through 2008. <br />Additionally, fixed costs charged by Centra l Weld County Water District and water use <br />for each customer category has been determined and incorporated into the rate model. <br />We determined that estimated revenues for 2008 are within one percent of budgeted <br />expenditures, which indicates existing ra tes are currently su fficient to recover <br />anticipated costs. Functional costs have been allocated to customer categories to <br />determine the revenue required by customer category for 2008. Rate alternatives for <br />single family customers have been developed based on the 2008 budget. <br />A study was also completed on rates and rate structures of simila r-sized municipalities <br />along the Front Range. The study was performed to allow the Town of Firestone to gain <br />perspective on different rate structures wh ile understanding that ra te structures are <br />unique to each water provider. <br />