Phoenix, City of
RFC has assisted the City of Phoenix (City) with various water and wastewater projects. The projects have included rate analyses; bond feasibility analyses; calculating an environmental fee; benchmarking studies; and a design/build/operate procurement.
Most recently, the City engaged RFC to perform a review of the financial forecast for its water system and provide an opinion with respect to the need for a rate increase. This review was necessary to address resistance to the requested increase by members of the Phoenix City Council. RFC performed the review and prepared a letter to City Council confirming the reasonableness of the forecast and the need for the requested rate increase. Harold Smith, RFC’s Project Manager for the engagement, also attended the City Council meeting at which the rate increase was approved.
In 2010, RFC was engaged by the City to analyze data from several peer utilities in an effort to determine the impact of large water rate increases on user demand. The study involved analyzing the relationship between the average customer consumption patterns and the change in the average customer’s monthly cost over a historical period of five to ten years. RFC contacted a total of 65 utilities to participate, and the report presented case studies of results for 10 utilities, including the City of Phoenix.
RFC also served as the financial/economic consultant for the evaluation of alternative project delivery models and Design/Build/Operate (DBO) procurement of the 80 MGD Lake Pleasant Water Treatment Plant. Phase I of the project consisted of a Multiple Criteria Analysis of various alternative project delivery methods that the City was considering for the project. Based on the analysis, the City decided to implement a DBO procurement. In Phase II RFC assisted with the DBO procurement. RFC also developed the financial model that was utilized to determine the long-term costs associated with each proposal. RFC also developed a contract administration tool for the Lake Pleasant project that the city currently uses to confirm that its private partner is adhering to the terms of the DBO contract.
Finally, RFC has assisted the City with nine of the City’s water and wastewater debt issuances including preparation of bond feasibility analyses and/or parity tests. Also in 2009, RFC prepared parity test letters for loans from the Arizona Water Infrastructure Finance Authority for water and sewer system improvements.