Milpitas Opengov #26-282

Milpitas Water and Sewer Rate Study and Annual Proposition 218 True-Ups

The City of Milpitas is seeking a consultant to develop water and sewer rates and support annual Proposition 218 reviews. - Government buyer: City of Milpitas, Finance Department; the solicitation also identifies the Purchasing Division. - Services requested: A water and wastewater (sewer) rate study, five-year financial plans and rate schedules, annual Proposition 218 true-up analyses, public-process support, and a City-owned Excel rate model. - Study scope: Review utility financial, customer, consumption, sewer-flow, and infrastructure information; assess operations and maintenance, debt service, capital needs, reserves, wholesale-water costs, and regional wastewater costs; and prepare a 10-year financial outlook. Develop and compare at least two rate-design alternatives for each utility, including customer-class cost allocation and bill-impact analysis. - Additional analyses: Review recycled-water charges and wastewater-strength charges; assess conservation, demand, inflation, funding, and reserve scenarios; and consider pass-through mechanisms and potential drought or emergency surcharges. - Annual work: Complete five annual true-up analyses for the study period, checking actual revenues and expenses and recommending adjustments within adopted and noticed maximum rates. - Engagement and deliverables: Three onsite customer workshops, two City Council study sessions, Proposition 218 hearing support, and presentation of findings. Provide draft and final reports, supporting records, an updateable City-owned Excel model and dashboard, presentation materials, editable outreach materials, and electronic working files. Up to two additional workshops are optional and separately priced. - Notable requirements: Follow Proposition 218 and applicable law, and use AWWA Manual M1 and WEF Manual of Practice No. 27 methodologies. The consultant team must have relevant experience. - Named organizations: No prospective consulting firm, bidder, or product vendor is identified. The documents mention the San Francisco Public Utilities Commission (SFPUC) and Valley Water as wholesale-water suppliers, and the South Bay Water Recycling Program as the recycled-water provider; these are project stakeholders or suppliers, not identified bidders. - Products and quantities: No products, product part numbers, or equipment quantities are requested.

Description

The City of Milpitas seeks a consultant to conduct a Proposition 218 cost-of-service and rate study to establish water and sewer rates for fiscal years 2028-29 through 2032-33. The work includes financial planning, cost-of-service analyses, rate design alternatives, capital funding and reserve analysis, community outreach, and support for Proposition 218 notices and hearings. The selected consultant will also perform annual Proposition 218 true-up analyses after each fiscal year closes, with each review completed within 90 days after issuance of the City's Annual Comprehensive Financial Report. The anticipated agreement term is March 1, 2027 through December 31, 2034, with no option years.

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