The West Liberty City Council spent $53,215 on studies and planning Tuesday, Oct. 6, at their first meeting of October, held via Zoom, from the West Liberty Public Library.
The council provided funding for two utility rate studies along with an Electrical Capital Improvement Plan approving a total of three different studies. The trio of studies will be conducted by two Midwest engineering firms to include a storm water utility feasibility study at a cost of $19,604; water and sanitary sewer rate study $7,211 as well as a cost of service and electric rate design study, costing $17,600. Veenstra & Kimm of Rock Island will conduct both of the first two studies while BHMG Engineers of Arnold, Missouri will complete the electrical rate study.
The studies are the result of a utility rate work session of the council held Sept. 15, looking at the possibility of raising water, sewer and electrical rates in the community.
The storm water utility feasibility study will include the evaluation of three alternatives as engineers look at the cost and time frame to implement each alternative, estimate approximate projected revenue from commercial, residential and impervious areas as well as billings, discussing procedures concerning implementation of storm water utility billing and producing a written report.
As part of the water and sanitary sewer rate study, engineers will review the past five years of city records and other public works, determine operational, maintenance and capital needs for the next five years, project future use based on trends and Iowa Department of Natural Resources requirements, review current user rates and develop proposed rate requirements, review rates of surrounding communities of similar size and then complete a summary presentation.
The cost and rate analysis for West Liberty’s electric system will “provide an integrated and uniform approach to the setting of rates that is consistent with prudent utility management practices,” according to the proposal the city approved.
The work will include a revenue requirement analysis including funding for capital improvements, a cost of service analysis, rate analysis and design as well as a cost of service technical approach.
The firm said the city’s most recent annual audit serves as the foundation for all cost analysis. The rate study will “slice” the data collected into useful information regarding each class of customer, permitting a “very close-up view” of system financial performance. The result of the study will provide a budget forecast, changes in purchased power costs and additional debt service to fund any expected construction program. BHMG has performed these types of studies for 41 years.
The same engineering firm also won approval for an electrical system capital improvement plan study for West Liberty to include electric system load forecast, substation capabilities, distribution line capacities and electrical system operations The plan will build on work completed in a recent Generation Facility Study.
The firm will look at probable locations for future residential, commercial and industrial growth as well as corresponding load growth.
As a result of the Sept. 15 work session, the city learned of a 1985 Electric Tariff filed with the Iowa State Commerce Commission, now the Iowa Utility Board. The council was told the Electric Tariff “has become antiquated as to how the city conducts business with utility customers.
” It was recommended the “best approach” was to split the Tariff and the service rules apart, creating the utility billing policy as a standalone document after the council approved Electric Service Rates on July 21, creating the separation from the Tariff. At the Oct. 6 meeting, the council discontinued the 1985 Tariff and approved the Utility Billing Policy.
That policy looked at all aspects of utility billing with the objective of providing better customer service through accurate and prompt billing as well as taking prompt actions to collect past due amounts, process disconnections and review requests and relief or refunds.
The utility is defined as electric, water, sewer and sanitation/recycling services.