The City of San Clemente is seeking proposals from qualified contractors to perform a Cost-Of-Service Study for the City’s Water Utility including potable and recycled water. The Study will include the following tasks: 1. Review the existing Water and Conservation Ordinances and evaluate said ordinances from a policy perspective, to develop a fair and equitable rate structure based on cost of service, water usage, and classification of customers. 2. Download historical consumption for the past three-year period. Analyze customer usage patterns and determine, by customer classification and by season (winter and summer), their peak to average ratios. Evaluate potential changes to the current rate structure by customer class for system peaking factors. 3. Review the City’s existing rate structure and determine whether rates are appropriate based on actual customer consumption patterns. This should also include the potable and non-potable (recycled) water rates. 4. Review the wholesale water supply pass-through rate structure and update the current pass-through rate and propose any changes to future pass-through rate adjustments in the future. 5. Review and present current industry practices compliant with California law for setting rates. Present potential fee structure alternatives to the City. 6. Provide alternative strategies to respond to future drought conditions (i.e., Demand Management Rates).
