Bid Notice.pdf

CITY OF LIVERMORE

PROPOSAL NO. 26-438895

FOR: CONSULTING SERVICES FOR WATER COST OF SERVICE STUDY

City of Livermore

1052 S. Livermore Ave.

Livermore, CA 94550

REQUEST FOR PROPOSAL #26-438895

FOR: CONSULTING SERVICE FOR WATER COST OF SERVICE STUDY

PUBLISHED: October 5, 2026

CLOSES: November 2, 2026

SUBMISSIONS:

All proposals must be submitted electronically via www.bidnetdirect.com

ON OR BEFORE: November 2, 2026, AT 2PM

GENERAL TERMS & CONDITIONS

1. Notice is hereby given that the City of Livermore, Alameda County, California, will receive sealed proposals for CONSULTING SERVICES FOR WATER COST OF

SERVICE STUDY.

2. Each proposal shall be in accordance with the conditions and specifications on file in the office of the Purchasing Specialist for City of Livermore, 1052 South Livermore Avenue, Livermore, California 94550. All proposal documents (PROPOSAL #26-438895) must be retrieved through www.bidnetdirect.com, where copies of said conditions and specifications may be inspected or obtained at no charge to vendor.

3. All proposals must be submitted electronically via www.bidnetdirect.com.

4. Each proposal shall be submitted and filed with the said Purchasing Specialist via www.bidnetdirect.com prior to 2:00 PM November 2, 2026. It is the

Proposer’s responsibility to ensure that proposals are received prior to the 2:00

PM proposal closing time. LATE PROPOSALS WILL NOT BE ACCEPTED! THIS

IS NOT A PUBLIC OPENING.

5. All blanks in specifications must be filled in, or proposal will be considered unresponsive.

6. Corrections must be noted, re-submitted, and received prior to 2:00 PM Monday, November 2, 2026.

7. Any claim of error by a Proposer must be made before the time of the opening of proposal submission; otherwise, it shall be deemed waived.

8. Any deviation from the attached specifications or substitution of services or materials must be clearly indicated. Complete detailed specifications must accompany any substitutions so specified.

9. The City reserves the right to reject any and all proposals on any basis deemed in the best interest of the City. Any changes, omissions, or variations in specifications or conditions of proposal may be considered cause of rejection.

10. No Proposer may withdraw his or her proposal for a period of sixty (60) days after the date set for the opening thereof.

11. The proposer, by submitting his/her proposal, agrees to save, defend, keep, bear harmless, and fully indemnify the said City and any of its officers, officials, agents, employees, or volunteers from all damages, claims for damages, costs, or expenses, whether in law or in equity, that may at any time arise or be set up for an infringement of the patent rights, copyrights, or trade-marks of any person or persons in consequence of the use by said City, or by any of its officers, officials, agents, employees, or volunteers or articles to be supplied under this proposal.

12. An Agreement will be awarded to the proposer whose proposal represents the

Best Value to the City of Livermore. Pursuant to Municipal Code section

2.68.130, the determination of which proposal represents the Best Value shall be based upon, but not limited to, the following considerations:

a. Cost;

b. The ability, capacity, and skill of the consultant to perform the contract or provide the services or equipment required;

c. The ability of the consultant to provide the services or equipment promptly or within the time specified without delay or interference;

d. The character, integrity, reputation, judgment experience, and efficiency of the consultant;

e. The quality of the consultant’s performance on previous contracts with the

City.

13. The City of Livermore will furnish exemption certificates for all federal taxes, if required. California State, Alameda County, and City of Livermore taxes are applicable and shall be shown separately.

14. Any questions regarding proposal procedures may be directed to the Purchasing

Specialist, Khaled Sawan, at kisawan@livermoreca.gov.

15. Any questions regarding the scope of this proposal may be directed to www.bidnetdirect.com under the question tab and a response will be given in a timely manner. All questions must be submitted online no later than Wednesday, October 21, 2026, in order for all questions to be received and responses to be issued through the system.

16. Proposer’s attention is directed to the Sample Professional Services Agreement (Attachment I) for all terms and conditions of the work along with insurance requirements. Proposers shall identify any requested exceptions to the City’s standard Professional Services Agreement, including indemnification and insurance requirements (Attachment I). Failure to identify exceptions in the proposal shall be deemed acceptance of the City’s terms.

It is highly recommended that proposer confer with their respective insurance carriers or brokers to determine in advance of proposal submission the availability of insurance certificates and endorsements as prescribed and provided herein. If a proposer fails to comply strictly with the insurance requirements, that proposer may be disqualified from award of the Proposal

Contract.

RFP TIMELINE AND RESPONSE SUBMISSION DEADLINES (Dates are tentative)

• RFP Issued October 5, 2026

• Deadline to submit questions by 5:00 PM October 21, 2026

• Response submission deadline 2:00 PM November 2, 2026

• Proposal review, ranking and selection November 13. 2026

• Award of contract November 20, 2026

• Contract term begins December 1, 2026

SPECIFICATIONS

GENERAL INFORMATION

The City of Livermore Municipal Water System (LMW) provides potable water service to approximately 10,800 customer connections within a 14-square-mile service area located in the northern and eastern portions of the City of Livermore. The City owns and operates the water distribution system, which delivers reliable, high-quality drinking water to residential, commercial, industrial, and institutional customers. Treated drinking water is purchased from Zone 7 Water Agency, the City's wholesale water supplier, and distributed through Livermore Municipal Water's system of pipelines, pump stations, storage facilities, and related infrastructure.

PURPOSE OF THIS RFP

The purpose of this Request for Proposal is to facilitate the selection of a qualified consulting firm to assist with the preparation of a water cost of service study. The study will require the selected consultant to perform all necessary analyses and documentation to perform the study and recommend a five-year rate schedule. The scope of work shall involve a comprehensive review of the City’s water enterprise funds, historical and projected revenues, usage, expenses, reserve policies, billing and collection procedures, rates and charges, current budgets, Water Master Plan, capital improvement plans, future planned growth of the city, and any other pertinent information.

PROPOSAL INQUIRIES

CONSULTANTS should direct all questions regarding the Invitation for Proposal via the www.bidnetdirect.com website under Proposal Number #26-438895, question and answer section.

All questions must be in writing and received by 5PM on October 21, 2026, to provide time for issuing and forwarding an addendum should the CITY consider an addendum necessary. Addendums will be posted on the website so all parties to whom the Invitation for Proposals was sent will be notified automatically if vendor has registered correctly. The CITY shall not be responsible for oral interpretations of the Invitation for Proposals.

REQUIRED PROPOSAL CONTENT

The City will accept proposals submitted to the Purchasing Specialist, Khaled Sawan, electronically via www.bidnetdirect.com.

The proposal shall be submitted in the following format with all the requested information and documentation. Failure to provide all the required information and documentation will cause the Proposal to be non-responsive.

1. COVER LETTER

Provide a brief narrative describing the firm and the firm’s interest in the project.

2. EXPERIENCE AND QUALIFICATIONS

a. Describe the experience of the firm and the individuals who will work on the project, including names and titles. For each team member, include their qualifications, relevant experience, and length of time with the firm.

b. Describe the firm’s Proposition 218 experience that includes number of studies completed in California, number of studies challenged, number of studies successfully adopted, and provide the three most recently adopted studies as agency references

3. WORK PLAN

Describe the firm’s approach to fulfilling the Scope of Services (Attachment II) to be performed and the overall method for management of overall project costs, schedule, quality assurance/quality control, and a time schedule for the completion of the project.

4. PERSONNEL ALLOCATION

Provide an estimate of the personnel hours required for each task identified in the Scope of Work, broken down by job title. The proposal shall identify the Consultant's designated Project Manager, who will serve as the single point of contact for the City throughout the duration of the project. The Project Manager shall be responsible for overall project management, coordination of the consultant team, communication with the City's Project Manager, and ensuring the timely completion of all project deliverables.

5. COST

Complete a summary of the estimated number of consulting hours, schedule of hourly rates for each classification, and total not-to-exceed cost inclusive of ancillary costs, including travel for the scope of work to be performed. This item should be included as a separate file from the main body of the proposal.

6. PUBLIC OUTREACH PLAN

The Consultant shall provide a comprehensive Public Outreach and

Communications Plan supporting the rate study and Proposition 218 process as outlined in the Scope of Work.

7. REFERENCES

Provide at a minimum of three references for projects of similar size and scope, including name, address, and contact person, email and phone number.

(See Attachment IV - References Form)

8. LEGAL ISSUES AND DISCLOSURES

Provide details of any past or pending litigation, or claims filed against your firm, principals of the firm, or each of your key staff, related to services to be performed for public agencies, or in actions that may affects its performance under contract with the City.

Provide information of whether your firm, or any principal of the firm has been, or currently is, the subject of any investigation by the County, State, and/or Federal agencies within the past five years. If so, identify the agency, contact person, and the nature of the said investigation.

9. SIGNED ACKNOWLEDGEMENT FORM

By signing the Acknowledgement form, the proposer affirms reviewing the City’s Professional Services Agreement. (Attachment V)

EVALUATION PROCEDURE

A review team, consisting of City of Livermore staff, will review proposals submitted, and establish a list of finalists based on the following criteria:

A. Experience of firm and key personnel (50%) B. Approach to services (20%) C. Project cost (10%) D. Ability to meet desired schedule (10%) E. References (10%)

The City of Livermore will select the successful proposer based on demonstrated competence and necessary qualifications. An interview of the finalist firms may be conducted at the City’s discretion. Proposers should also be aware that award may be made without interviews or further discussion.

ATTACHMENT I

SEE SAMPLE PROFESSIONAL SERVICES AGREEMENT

FINAL VERSION TO BE NEGOTIATED FOLLOWING SELECTION OF PROPOSAL

ATTACHMENT II

EXHIBIT A

SCOPE OF SERVICES

The Scope of Services involves all necessary labor, equipment, vehicles, tools, supplies, materials, travel, and documentation needed to perform the water cost of service study and staffing plan including, but not limited to, the following:

1. Create a cost-of-service study, rate structure analysis and financial planning model to support a rate recommendation to the City Council:

A. Cost of Service Study and Rate Structure Analysis

• Analyze potable water and recycled water separately and develop independent cost of service analyses and rate recommendations for each user group.

• Evaluate the City’s existing rate structure and develop alternative rate structures, including evaluating the current structure, fixed and variable rate alternatives;

uniform rate structures; drought pricing alternatives; zone-specific infrastructure charges for the potable water system; and a recommended rate structure that complies with Proposition 218 and supports the City's financial and operational objectives.

• Conduct an affordability analysis for residential, low-income, multi-family and commercial properties, benchmarking against neighboring jurisdictions.

• Analyze historical water usage trends and demand projections to support revenue

• Complete a reserve policy evaluation and recommendation.

• Complete a revenue stability analysis for safeguards in the event of economic downturn or other unforeseen scenarios.

B. Financial Planning Model

• Develop an interactive financial planning model in Microsoft Excel with a minimum 10-year planning horizon.

• Forecast revenues, expenditures, ending fund balances, reserve levels, revenue requirements, growth assumptions, debt service (as applicable), capital improvement program funding, and future rate adjustments.

• Allow side-by-side comparison of multiple financial and rate scenarios, including variations in water demand, inflation, capital improvement schedules, reserve funding, and other key assumptions.

• Provide a fully unlocked Microsoft Excel workbook with all formulas visible, no proprietary software or add-ins, clearly documented assumptions, and sufficient documentation for City staff to independently maintain and modify the model.

• Staff training of up to 8 hours on model usage and full functionality of the model so staff may use the model as scenarios change.

2. Public Outreach and Communications:

• Develop initial messaging to all customers demonstrating proper stewardship of the water system and building a foundational understanding through social media outreach before introducing the idea of rate increases and why they are necessary. Develop and implement a comprehensive public outreach and communications plan including a communications schedule, FAQs, talking points for staff and Council, infographics, social media content, press releases, community presentation materials, at least two professionally facilitated evening public workshops before the Proposition 218 hearing, and technical support during the Proposition 218 noticing period.

• Website created for rate study and communicating the increases to the public.

Website is to be managed by consultant. Website will include a section for questions to be submitted by ratepayers and answered by consultant.

3. Proposition 218 Support:

• Prepare Proposition 218-compliant public hearing notices and supporting documentation

• coordinate printing and mailing to property owners of record and physical service addresses

• provide technical review of staff reports and ordinance revisions

• provide technical assistance during the noticing period and attend the public hearing. Consultant staff assigned to the project must be knowledgeable of and remain current on applicable Proposition 218 requirements and procedures, including recent updates affecting the rate-setting, noticing, and public hearing process.

4. Meetings, Travel and Consultant Availability:

• Travel to Livermore, California for a minimum of three (3) in-person meetings as directed by the Project Manager.

• Consultant will participate in regular project check-in meetings with City staff throughout the project, including meetings with the City's legal team as requested. Check-in meetings may be conducted virtually or in person, as determined by the Project Manager.

• Consultant shall be available to attend all City Council meetings related to the proposed rate increases, Proposition 218 public hearing process, and adoption of rates. Based on the current tentative project schedule, anticipated City Council meetings include the City Council presentation on September 13, 2027, and the

Proposition 218 Public Hearing on October 11, 2027. These dates are tentative and subject to change. The Consultant shall accommodate reasonable schedule changes necessary to support the City's rate-setting and Proposition 218 process.

DELIVERABLES:

a. PowerPoint presentation for project kick-off meeting.

b. Meeting agendas and meeting minutes.

c. Interactive financial planning model.

d. Four (4) to eight (8) hours of staff training.

e. Comprehensive cost-of-service study and rate recommendations.

f. Proposition 218-compliant notice documents and supporting calculations.

g. Printing and mailing of Proposition 218 notices.

h. Comprehensive public outreach and communications plan.

i. Public education materials including FAQs, talking points, infographics, press releases, website content, and social media materials.

j. Materials for community meetings and public hearings.

k. Final technical memorandum supporting recommended rates.

l. Project management and administration services.

m. Staff binder/talking points for Finance staff to properly field calls.

PROJECT TIMELINE (Dates are Tentative):

Milestone Target Completion

Project kick-off meeting Within two (2) weeks of Notice to Proceed

Initial data request Within one (1) week of kick-off

Complete data collection and review January 2027

Draft Cost of Service and Staffing Plan Analysis

March 2027

City staff workshop March–April 2027

Draft Public Outreach and Communications Plan

April 2027

Initial outreach materials May 2027

Draft Proposition 218 notice June 2027

Final Proposition 218 notice July 10, 2027

Community outreach meetings (minimum two)

July–August 2027

Final Cost of Service and Staffing Plan, Financial Model, and Recommended Rates

August 2027

Technical review of staff report and ordinance for City Council

August–September 2027

City Council presentation September 13, 2027

Proposition 218 Public Hearing October 11, 2027

Final report, model, documentation, and staff training

Within two weeks following adoption

Attachment III

EXHIBIT C

INSURANCE REQUIREMENTS

ATTACHMENT IV

REFERENCES

Proposer shall provide a minimum of three (3) verifiable references

REFERENCE #1

ADDRESS

CITY, STATE ZIP CODE

TELEPHONE #

CONTACT

DATES OF SERVICE

REFERENCE #2

CITY, STATE, ZIP CODE

TELEPHONE #

REFERENCE #3

CITY, STATE, ZIP CODE

TELEPHONE #

ATTACHMENT V

ACKNOWLEDGEMENT FORM

The undersigned proposer declares that he/she has carefully examined the Sample Agreement and agrees to furnish CONSUTLING SERVICE FOR WATER COST OF SERVICE STUDY AND

STAFFING PLAN to the City of Livermore. The undersigned further declares that this proposal is made according to the provisions and under the terms of the "Notice to Proposers", which the document is made a part of this proposal.

Date __________________

COMPANY NAME

STREET ADDRESS

CITY, STATE ZIP CODE

MAILING ADDRESS (IF

DIFFERENT)

CITY, STATE ZIP CODE

PHONE

PRIMARY CONTACT NAME &

TITLE

PHONE #

EMAIL

AUTHORIZED SIGNER & TITLE

(EXECUTION OF CONTRACT)

PHONE #

EMAIL

Authorized Signature of Proposer:

*** Proposal responses must be received electronically via www.bidnetdirect.com by 2PM November 2, 2026 ***