Comprehensive Water Utility Rate Study Services

The Vendor is required to provide comprehensive water utility rate study and provide proposition 218 support services.
- Professional services, including, but not limited to, the following tasks:
1. Project initiation
•    Meet with city state to review project objectives
•    Develop a detailed project schedule and communication plan
2. Financial plan development
•    Review historical revenues and expenditures of the water enterprise fund
•    Evaluate operating and maintenance costs
•    Review reserve policies and financial practices
•    Develop a 10-year financial plan and forecast
3. Cost of service analysis
•    Conduct cost-of-service allocation by customer class
•    Evaluate equity and sustainability of the current rate structure
•    Ensure compliance with proposition 218 requirements
4. Rate structure evaluation
•    Evaluate the city’s current fixed charge and volumetric usage structure
•    Review conservation pricing approaches
•    Evaluate penalties for excessive water usage
•    Evaluate affordability considerations for rate increases
5. State rate forecast and implementation plan
•    Develop a recommended 5-year rate implementation plan
•    Provide bill impact analysis for customer classes
•    Develop multiple rate scenarios if appropriate
6. Rate model development
•    Provide a fully functional excel-based rate model for city state use
•    Provide training to city state on how to utilize and maintain the model
7. Connection and capacity fees
•    Review and recommend updates to connection and capacity fees to ensure alignment with system costs and capital improvements
8. Utility rate assistance program (URAP) review
•    Evaluate the sustainability of the URAP program funding mechanism
•    Provide recommendations for maintaining the program while ensuring financial stability
9. Proposition 218 support
•    Prepare rate justification documentation
•    Assist with proposition 218 noticing requirements
•    Attend public hearings and community meetings as requested
10. Meetings and presentations
•    State workshops
•    City council presentations (at least 2)
•    Public outreach meetings if requested
11. Final report
•    Financial plan and revenue requirements
•    Cost of service analysis
•    Recommended rate structure
•    Rate implementation plan
•    Connection and capacity fee recommendations.

- Budget: $55,000 to $80,000