The vendor is required to provide consulting services to prepare and complete a cost of service study for its water utility ("water utility") and provide additional, related cost or fee studies, if needed.
- Required services
• Perform a fully allocated cost of service study tailored to agency water utility, including:
1. Determination of test year revenue requirements, collection and analysis of applicable data, and the functionalization, classification, and allocation of costs to classes of service consistent with accepted industry standards and best practices, and in compliance with applicable legal requirements including, but not limited to, state proposition 218.
2. Functionalize expense data by major and sub functions relating to the activities performed in the operation of the water utility system.
3. Functionalize expenses to cost components: capacity costs, commodity costs, customer costs, and other direct costs.
4. Classify plant investment by major cost category: treatment plants, reservoirs, pump stations, pipelines, meters, etc.
5. Classify operating and maintenance costs, including administrative, engineering, water supply, power, debt service, and reserve fund requirements.
6. Allocate classified costs to each class of service and meter size.
7. Derive class of service unit costs.
• Develop a user-friendly, excel-compatible model for functionalizing and classifying costs using the cash approach.
• The model must allow for adjustments to key factors such as water supplies, sales, and customers.
• The model will become the property of agency.
• Prepare both a preliminary and final report summarizing the study's results.
• Provide documentation, training, and ongoing support to agency staff with maintaining and updating the cost of service model.
- Contract Period/Term: 1 year
- Questions/Inquires Deadline: April 25, 2025