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~~ ~ <br />~~ <br />water rights • planning engir~e~erir~g <br />MEMORANDUM 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: 9-29-08 <br />Subject: 95% Progress Report for Town of Firestone 2008 Rate Study <br />Clear Water Solutions and Water Consulting Group have worked closely with Town of <br />Firestone staff to develop rates that work well for its existing customer base. <br />Recovering costs and encouraging water conservation have been key focus areas <br />during our rate development. Staff has provided water use, revenue and expense data <br />that has been important in establishing rates that are fair across all customer <br />categories. <br />The Town completed an informal rate analysis in 2003, which determined its current <br />rates. The Board has not adjusted rates since this time. Because of this, proposing too <br />large of a jump from existing rates would be problematic. This added another dynamic <br />in our rate development. <br />Our priority was to provide the Town Board and staff with the background and education <br />needed to establish rates fairly and to understand the importance rates play in water <br />conservation. A study was completed on rate structures ofsimilar-sized municipalities <br />along the Front Range. This study provided the Town with perspective on different rate <br />structures while understanding that rate structures are unique to each water provider. <br />We feel the Board is well equipped to set rates that best suit Firestone. <br />On Thursday, October 2, 2008, we will attend the Town Board work session to present <br />two rate alternatives for the Board to consider - a three-tier and afour-tier structure. <br />We will provide an overview of how these rates were developed and show how the <br />recommended rate structure compares to other similar-sized water providers. <br />Furthermore, we will discuss the anticipated impacts the rate structures will have on <br />existing Firestone rate payers and the timeline for implementation. We will request that <br />the Board provide direction on which rate alternative to implement. The Board will <br />provide any suggestions or adjustments that need to be made to the recommended rate <br />structure prior to implementation. <br />8010 S. County Road 5, Ste. 105 Windsor, C~3 80528 ~ ~T) 970.223.370F~ I (F) 970.223.3163 I www.clearwatercolarad0.com <br />