Number
120642
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution regarding a request for proposal for professional services to develop a revenue requirement, perform a cost of service study, and develop a rate structure for the Milwaukee Water Works.
Analysis
This resolution authorizes and directs the Commission of Public Works to issue a Request for Proposals and execute a contract for professional services to develop the revenue requirement, perform a cost of service study, and develop a rate structure for the Milwaukee Water Works. The contract will provide an option for the selected firm to represent Milwaukee Water Works in related rate case hearings.
Body
Whereas, The Milwaukee Water Works is an enterprise fund operated by the City of Milwaukee; and
Whereas, The Milwaukee Water Works is funded exclusively by water sales and other operating revenues of the Milwaukee Water Works, which are used for the operation, maintenance, and improvements to the Milwaukee Water Works; and
Whereas, The Milwaukee Water Works is regulated financially by the Public Service Commission of Wisconsin; and
Whereas, Any rate increases to support ongoing costs of the Milwaukee Water Works must be submitted and approved via application to and hearings before the Public Service Commission; and
Whereas, Such rate increases require detailed study of the Milwaukee Water Works' operating costs, capital structure, and allocation of both to the Milwaukee Water Works' various customer classes; and
Whereas, It is in the best interest of the Milwaukee Water Works and the City of Milwaukee to hire experts in this specialized field for this work, and to begin in advance of an application for a rate increase, and to have expert representation at related rate case hearings; and
Whereas, Common Council approval will be required to initiate the rate increase process;now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, That the Commissioner of Public Works is authorized and directed to issue a Request for Proposals and execute a contract for professional services to develop the revenue requirement, perform a cost of service study, and develop a rate structure for the Milwaukee Water Works, with an option for the selected firm to represent the Milwaukee Water Works at rate case hearings.
Requestor
Department of Public Works
Milwaukee Water Works
Drafter
Water Administration
Carrie M. Lewis
October 3, 2012