Request for Proposal (RFP) for Professional Services to Develop a Comprehensive Sewer Rate Study

Description

General work description:The City of South San Francisco is seeking proposals from qualified professional firms to conduct a Comprehensive Sewer Rate Study, conduct the necessary property owner mailing and participate in the public hearing to adopt the proposed rates. The purpose of this study is to prepare a cost-of-service study, validate the appropriate rate structure, and recommend rates for the City that generate adequate revenue to cover:Current and future operations and maintenance costs based on established and anticipated regulations and industry best management practices; Rate stabilization; Capital Improvement project costs; An adequate reserve fund; Required debt coverage; and Necessary studies to maintain an efficient and resilient utility. The primary objective is to ensure long-term revenue sufficiency, develop equitable cost-of-service allocations, and maintain full compliance with California Proposition 218.The selected firm will develop a 20-year financial projection and model with a recommended not to exceed 5-year rate schedule. The selected firm shall provide the financial model in a format accessible to City staff, including adjustable inputs and variables to allow staff to evaluate and model future scenarios.