Cost of Service and Rate Study | RFP UD26-345 | 1

REQUEST FOR PROPOSALS FOR

COST OF SERVICE AND RATE STUDY

UD-26-345

July 2026

Cost of Service and Rate Study | RFP UD26-345 | 2

Please read this entire RFP carefully as it contains important information essential to your proposal.

For a list of terms and definitions, see Section 5.1 of this RFP.

LBPUD reserves the right to modify these dates at any time, with appropriate notice to proposers.

KEY INFORMATION & DATES

RFP Summary The Long Beach Public Utilities Department is requesting proposals from qualified consultants to conduct a comprehensive cost of service and rate study for potable water, reclaimed water, sewer and ancillary services.

RFP Opens Tuesday, July 28, 2026, at 11am

Deadline for Questions Tuesday, August 4, 2026, at 11am

Posting of Q&A Tuesday, August 11, 2026, at 11am

Proposal Due Date Tuesday, August 18, 2026, at 11am

Proposal Submission

Process

(See Section 3)

• Proposers must be registered with Long Beach Buys to submit a proposal.

• Proposals must be submitted electronically via LongBeachBuys.com

• Changes or notices to this RFP will only be posted on Long Beach

Buys.

RFP Official Contact

Erin Reyes Erin.reyes@lbwater.org

All communications with Long Beach Public Utilities Department

(LBPUD), related to this RFP, must be directed to the contact above.

Long Beach Buys Assistance

For technical support with Long Beach Buys, email LBPurchasing@longbeach.gov or call (562) 570-6200, Monday – Friday

7:30 a.m. to 4:30 p.m.

Resources for Proposers

BizCare staff connect business owners and nonprofit leaders to important resources and information, such as grants, loans, technical assistance, information on City policies, and more.

562-570-4249 | 4Biz@longbeach.gov

Request Assistance Form https://longbeachbuys.buyspeed.com/bso/ mailto:LBPurchasing@longbeach.gov https://longbeach.gov/edo/business-support/bizcare-program/ mailto:4Biz@longbeach.gov https://app.bludot.io/survey/eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJzdXJ2ZXlfdGVtcGxhdGUiOiI5MjBhNDVmYy1jZjkwLTQ0YjEtYmI3Yi1mYzcxOGNkNDJlODIifQ.9nAqbkGMhrIbnzfvkrYvJaE8Ql5tPeaG3x40gLMyGI8

Cost of Service and Rate Study | RFP UD26-345 | 3

Table of Contents

1. The Opportunity

1.1 Project Summary

1.2 Project Background

1.3 Goals

1.4 Award Terms

2. Scope of Work

2.1 Description of Services

2.2 Contract Performance Monitoring

2.3 Performance Metrics .........................................................Error! Bookmark not defined.

3. Submitting Your Proposal

3.1 Proposal Content

3.2 Submission Instructions and Timeline

4. How We Choose

4.1 Minimum Qualifications

4.2 Evaluation Criteria

4.3 Selection Process, Award, and Protest Procedures

5. Terms and Conditions

5.1 Acronyms/Definitions

5.2 Solicitation Terms & Conditions

5.3 Contract Terms & Conditions

6. Appendix ...................................................................... Error! Bookmark not defined.

7. Required Documents for Submission

Cost of Service and Rate Study | RFP UD26-345 | 4

1. The Opportunity

1.1 Project Summary

The Long Beach Public Utilities Department (LBPUD) is soliciting proposals from qualified proposers to conduct a comprehensive cost of service and rate study (the Study) for potable water, reclaimed water, sewer and ancillary services provided to the community by LBPUD. Those who successfully respond to this Request for Proposals and are deemed most qualified will be invited to present a demonstration on the methodology to be used and samples of reports and documentation to be expected on this project.

The intent of the Study is to independently evaluate the Department’s existing water and wastewater rates and provide alternative recommendations for a reasonable rate structure that supports the Department’s goal to promote conservation while ensuring sustainable funding for each utility’s operating and capital improvement needs.

The Study will be based on a comprehensive review of the Department’s water and wastewater enterprise funds, historical statements of revenue and expense, current year budgets, customer accounts and classes, historical usage data, Water and Wastewater Master Plans, capital improvement plans, and other information deemed necessary.

For more information on the Long Beach Public Utility Department, please visit www.lbutilties.org.

1.2 Project Background

A General Municipal Election was held on November 8, 2022, which contained Ballot Measure BB. Voters approved the Measure to amend the City Charter to merge the existing water, sewer, and gas utilities into one utility department, governed by the existing independent Water/Utility Commission. LBPUD is governed by a five-member Board of Utilities Commissioners appointed by the Mayor of Long Beach.

LBPUD is an urban, Southern California retail water supply agency. Since 1911, LBPUD has been diligent in delivering an affordable and high-quality supply of drinking water.

Currently, LBPUD serves a total population of 470,000 through over 900 miles of pipelines. LBPUD also provides efficient, safe delivery of the City’s wastewater to nearby wastewater trunk lines and treatment facilities.

The last comprehensive rate study for water, sewer, and reclaimed water service was completed in 2015, which established a new rate structure replacing the 1996 framework, and was validated in 2022. .

While annual adjustments have been made since 2015 to address revenue requirements and cost recovery needs, there have been no changes to the underlying rate structure adopted in 2015. The Department’s water and sewer enterprise budget and rate structure https://www.lbutilities.org/

Cost of Service and Rate Study | RFP UD26-345 | 5 are adjusted annually based on cost recovery requirements and California State law governing water utility rate setting (Proposition 218). See Exhibit A for current rates.

The Department’s water and sewer enterprise budget and rate structure are adjusted annually based on cost recovery requirements and California State law governing water utility rate setting (Proposition 218). See Exhibit A for current rates.

Long Beach water demand peaked in 1990, but water demand has been declining ever since. Since 2015, the Department and State have continued to launch water conservation efforts to establish long-term, sustainable water use efficiencies. Although LBPUD’s customer base has remained stable and diverse across customer categories, there has been a marked decline in water consumption due to these efforts. Finally, to plan for future operations, including maintenance and upgrades to existing infrastructure, LBPUD has completed its 2025 Urban Water Management Plan and is in the process of completing the Sewer Master Plan.

1.3 Goals

LBPUD is requesting proposals from qualified consultants to conduct a comprehensive cost of service and rate study (the Study) for potable water, reclaimed water, sewer and ancillary services provided to the community by the Department. Those who successfully respond to this Request for Proposal and are deemed most qualified will be invited to present a demonstration on the methodology to be used and samples of reports and documentation to be expected on this project.

The Study will be based on a comprehensive review of the Department’s water and wastewater enterprise funds, historical statements of revenue and expense, current year budgets, customer accounts and classes, historical usage data, Water and Wastewater Master Plans, capital improvement plans, and other information deemed necessary.

Successful completion of the services requested through this RFP will assist LBPUD in achieving the following objectives:

• Conduct an independent assessment of the Department’s existing water and wastewater rate structures to evaluate their adequacy, effectiveness, and alignment with all laws, regulations, policies, and industry best practices.

• Develop and evaluate alternative rate structure recommendations that provide sufficient and sustainable funding for each utility’s operating, maintenance, and capital improvement needs while balancing key policy objectives, including:

o Conservation – Assess the evolving legal and regulatory landscape affecting conservation-based rate design and identify approaches that support efficient water use while maintaining compliance.

o Consumption Trends and Cost Recovery – Evaluate the impacts of declining consumption on revenue stability and fixed cost recovery and recommend rate design strategies that enhance financial sustainability.

Cost of Service and Rate Study | RFP UD26-345 | 6 o Equity and Affordability – Analyze rate impacts across customer classes and recommend rate structures that promote affordability and equitable cost allocation.

• Provide LBPUD with as-needed rate and service comparisons to other water and wastewater agencies needed for communication and decision-making purposes.

• Following successful completion of the Study, annual services may include updates to revenue requirements, rate recommendations, assistance with Board presentations, benchmark comparisons to other agencies, and as-needed technical assistance.

• Work shall include consideration of recent legal developments related to Proposition 218, with particular attention to evolving expectations for demonstrating proportionality, relying on agency specific cost data, and clearly documenting all assumptions and calculations. The consultant shall ensure transparent and defensible cost of service justifications, appropriate allocation of fixed and variable costs, legally supportable tier and customer class structures, and compliance with updated statutory requirements.

The Consultant shall develop and manage the project to ensure the final draft report is completed and submitted no later than March 29, 2027. This milestone is critical to allow sufficient time for City staff to review the report, prepare recommendations, and incorporate the results into the Utilities Department's Board presentations and budget development process. Proposers should demonstrate a realistic project schedule and identify the resources necessary to meet this key deliverable while maintaining the quality and accuracy of the final report.

1.4 Award Terms

This contract will be for a period of two years with the option to renew for three additional one-year periods at the discretion of the City. The total contract term will not exceed five years.

2. Scope of Work

2.1 Description of Services

The Department is seeking proposals for a comprehensive Cost of Service Study for both its water and wastewater systems. The scope of work will include, at a minimum, the following:

1. Evaluate the current LBPUD’s cost of service methodology, revenue requirements and rate structures; and determine if existing user categories and rate structure methodologies are equitable.

2. Prepare a comprehensive cost-of-service analysis that accurately allocates the cost of providing service among customer classes and present options for what

Cost of Service and Rate Study | RFP UD26-345 | 7 methodology to use moving forwarding, including, but not limited to, re-validating the current cost-of-service methodology or developing a new methodology.

3. Evaluate and develop alternative rate structure recommendations that are legally defensible, consistent with industry best practices, and compliant with applicable California laws governing utility rate setting, including Proposition 218.

Recommendations shall be supported by sound cost-of-service methodologies and cost allocation principles, demonstrate that proposed rates do not exceed the cost of providing service and reflect a proportional allocation of costs attributable to each customer class, and balance LBPUD's key policy objectives of fiscal sustainability, water conservation, and customer affordability.

4. Evaluate and provide comparative analyses of typical customer bills and rate structures with peer agencies providing potable water, reclaimed water, sewer, and ancillary utility service.

5. Estimate the annual revenue requirements over a minimum five-year planning horizon, including projected capital expenditures, capital improvement investments, operations and maintenance costs, debt service, depreciation, reserve funding, and any other anticipated financial obligations necessary to support utility operations. The analysis shall include detailed financial assumptions, methodologies, and key revenue and expenditure drivers used in developing the projections. The Consultant shall identify significant assumptions, risks, and sensitivities that could materially impact future revenue requirements and provide sufficient documentation to support the analysis.

6. The Consultant shall recommend annual water and wastewater rate adjustments for a five-year planning horizon. The recommended rate path shall be based on projected costs associated with estimated capital improvements, plant investments, operations and maintenance, debt service, depreciation, and reserve requirements, assuming no significant changes to the underlying financial assumptions and expenditure forecasts used in the analysis.

7. Prepare a comprehensive Cost of Service Study documenting the methodologies, assumptions, financial analyses, cost allocations, and rate recommendations in sufficient detail to support LBPUD’s Proposition 218 public notice process, Board presentations, and future implementation of recommended rates.

8. Produce guidelines and train LBPUD Financial Services staff in techniques for:

a. Updating and evaluating future revenue requirements.

b. If available, provide an estimated cost to develop an Excel-based rate model that may be used by LBPUD to update and evaluate future revenue requirements. The proposed rate model is optional and will not be considered as part of the proposal evaluation.

Cost of Service and Rate Study | RFP UD26-345 | 8

9. Provide annual services including assistance with Board presentations, benchmark comparisons with other agencies, and as-needed technical assistance.

Service Requirements

1. Draft Report – The Consultant will provide a preliminary report outlining the financial plan, cost of service allocations and rate design for review by the Department.

2. Final Report – Based on review comments by the Department of the draft report, a final report will be prepared and submitted via PDF.

3. User Documentation (if applicable) - If the Consultant elects to provide the optional Excel-based rate model, the Consultant shall provide user documentation describing the model’s functionality, methodologies, assumptions, formulas, and key inputs, along with instructions for updating the model and performing future revenue requirements and rate analyses.

4. Presentations to Executive Management and the Board of Commissioners – The Consultant will be asked to participate in formal and informal discussions and presentations with Board of Public Utilities Commissioners (“Board”) members and staff.

Included in these presentations will be a Typical Bill Comparison under existing and proposed rates for each customer class under various levels of domestic water usage and meter sizes.

Project Schedule

Milestones Due Date Notice to Proceed September 2026 Draft Report Issued March 15, 2027 Final Report Issued March 29, 2027 Board Presentation April 8, 2027

2.2 Contract Performance Monitoring

LBPUD will assign a Project Manager to oversee the project and serve as the primary point of contact. The Consultant shall designate a Project Manager responsible for coordinating all project activities and deliverables to LBPUD. The Consultant shall provide regular progress updates and participate in meetings, as requested, to review project status, discuss upcoming milestones, and address any issues affecting the project schedule or scope. Consultant performance will be evaluated based on adherence to the project schedule, quality and completeness of deliverables, responsiveness, effective communication, and successful completion of the Scope of Work in accordance with the requirements of this RFP.

Cost of Service and Rate Study | RFP UD26-345 | 9

2.3 Performance Metrics

LBPUD is interested in identifying metrics to work collaboratively with the Awarded Consultant(s) to monitor and improve performance during the life of the contract. LBPUD has identified initial metrics of interest and looks forward to working with the Awarded Consultant(s) to add to or refine this list during contract negotiations. The final set of performance metrics and frequency of collection will be negotiated by the Awarded Consultant and LBPUD prior to the finalization of an agreement between parties and may be adjusted over time as needed.

PERFORMANCE

METRIC DATA SOURCE

DATA

COLLECTION

FREQUENCY

DATA

COLLECTION

RESPONSIBILITY

Timely Completion of Project Milestones & Deliverables

Consultant submits all required deliverables (financial model, cost of service analysis, draft/final reports, workshops, and training materials) by agreed-upon project schedule with no more than 10% schedule variance.

Regular project status meetings and milestone reviews as required by

LBPUD

Consultant Project Manager to provide updates; LBPUD Financial Services Project Lead to monitor and document progress

Accuracy & Completeness of Financial and Cost of Service Analysis

Draft and final financial models, revenue forecasts, and rate structure analyses are completed with minimal revisions required by LBPUD staff and accurately reflect agreed-upon assumptions, capital forecasts, debt service, reserve requirements, and customer classifications.

At completion of each major task/deliverable phase (Financial Plan, Cost of Service Analysis, Rate Design)

Consultant Lead Analyst prepares analyses; LBPUD Financial Services staff review and validate assumptions/results

Staff Training & Knowledge Transfer Effectiveness

Consultant provides training sessions, user guidelines, and model documentation that enable LBPUD staff to independently update revenue requirements and evaluate future rate scenarios. Success measured by staff participation, completion of

At completion of training workshops and final model delivery

Consultant responsible for training delivery and materials; LBPUD Financial Services management responsible for evaluating staff readiness and documenting completion

Cost of Service and Rate Study | RFP UD26-345 | 10 training materials, and staff ability to perform updates following training.

Cost of Service and Rate Study | RFP UD26-345 | 11

3. Submitting Your Proposal This section outlines key requirements that must be addressed in the proposal. Review the Proposal Checklist to ensure your submission includes all requirements. A proposal may be considered non-responsive if conditional, incomplete, or if it contains alterations of form, additions not called for, or other irregularities that may constitute a material change to the Request for Proposal. Complete proposals will include the following:

PROPOSAL CHECKLIST

LONG BEACH BUYS INFORMATION

Verify contact information in Long Beach Buys

Confirm the email address, phone number, and classifications applicable to your business in Long Beach Buys are accurate.

Proposal Narrative -- See Section 3.1 Cost Proposal -- See Section 3.1 Other documents that are relevant to the evaluation criteria included in this RFP (i.e.

Sample Studies)

SUPPORTING DOCUMENTATION

Proof of Financial Stability

REQUIRED RFP DOCUMENTS

Fillable versions of these forms are included in Section 7. All forms below must include a wet signature from the individual legally authorized to bind the contractor and submitted along with the proposal in Long Beach Buys.

Signed Addendum Proposer Contact Information Authorization and Certification Equal Benefits Ordinance (EBO) Form [Include any applicable licenses, certificates, permits]

REQUIRED DOCUMENTS UPON AWARD

W-9 City of Long Beach Business License Proof of Registration with the California Secretary of State Certificates of Insurance

Include proof of the minimum insurance coverage as determined in Section 3.1.2

Submitting Questions See Section 3.2

3.1 Proposal Content

Proposal Narrative

Cost of Service and Rate Study | RFP UD26-345 | 12

The Proposer shall submit a Proposal Narrative to demonstrate their qualifications and approach for fulfilling the Scope of Work and requirements of the RFP. The following information requested will be used to evaluate the proposal based on the criteria outlined in Section 4. Proposers may be deemed non-responsive, if they do not respond to all items listed below. Proposals should not exceed thirty (30) pages.

Organize and present a Letter Proposal in a neat and logical format, that is clear, accurate, and comprehensive. Excessive or irrelevant material will not be favorably received. The Proposal Narrative must include the following sections (when submitting, clearly label each section):

• Demonstrate the Consultant's understanding of LBPUD's water, wastewater, reclaimed water, and ancillary utility operations, including the financial, regulatory, and operational considerations associated with developing equitable and sustainable utility rates.

• Describe the proposed methodology for evaluating existing rate structures, determining revenue requirements, allocating costs of service, developing customer class cost allocations, and preparing rate design alternatives consistent with industry best practices, legal requirements and current legal complexities.

• Explain the Consultant's approach for analyzing historical financial and operational data, projected operating and capital expenditures, debt service, reserve requirements, depreciation, customer demand, consumption trends, and other factors influencing future revenue requirements.

• Describe the process for developing financial forecasts over the required planning horizon, including key assumptions, methodologies, sensitivity analyses, and revenue and expenditure drivers used in the evaluation.

• Describe the Consultant's approach for engaging and collaborating with LBPUD staff throughout the project, including data collection, validation, project meetings, progress reporting, review of draft deliverables, and incorporation of stakeholder feedback.

• Explain the Consultant's approach to preparing draft and final reports, technical memoranda, presentations, and other deliverables that clearly communicate the study findings, recommendations, and financial impacts to both technical and non-technical audiences.

• Describe the Consultant's quality assurance and quality control (QA/QC) procedures that will be implemented to ensure the accuracy, consistency, and completeness of all analyses, calculations, models, and deliverables.

• If proposing the optional Excel-based rate model, describe the proposed functionality of the model, its intended use by LBPUD staff, assumptions incorporated into the model, and the Consultant's approach for providing user documentation and staff training. Consultants not proposing a rate model should indicate this in their proposal. The availability of a rate model will not be considered in the evaluation or award of the contract. If proposing an optional Excel-based rate model, describe functionality and provide separate pricing.

• Describe any innovative tools, methodologies, technologies, or best practices the Consultant believes will add value to the project and improve the accuracy, transparency, or long-term usability of the Cost-of-Service Study.

Cost of Service and Rate Study | RFP UD26-345 | 13

Cost Proposal

The Cost Proposal shall be prepared using a clear and organized format that accurately communicates the proposed cost of providing the requested services over the five (5)-year contract term. Consultants may present costs by project task, deliverable, milestone, staffing classification, hourly billing rates, or another format that clearly identifies the proposed pricing structure.

At a minimum, the Cost Proposal shall include the proposed annual Not-to-Exceed (NTE) compensation for each year of the five-year contract term, as well as the total Not-to-Exceed compensation for the full contract term. Consultants shall identify any proposed contingency fees and, if applicable, and provide the basis, conditions, and duration under which such fees would apply.

If applicable, the Cost Proposal shall also include:

• Fees for software licensing, subscriptions, or maintenance;

• Any hardware or technology requirements necessary to support the proposed services;

• Details of any proposed annual fee adjustments or escalation provisions, including the timing, methodology, and adjustment factor;

• A schedule of hourly rates or fees for additional consulting services not included within the proposed Scope of Work;

• Any anticipated reimbursable expenses or other potential charges associated with the proposed agreement.

The Consultant shall clearly identify all assumptions used in developing the proposed pricing. Unless specifically identified in the Cost Proposal and accepted by LBPUD, all costs necessary to perform the Scope of Work shall be considered included in the proposed compensation.

3.1.1 Required Documents for Proposal

Proof of Financial Stability Proposers should include one or more of the following financial statements to provide LBPUD with enough information to determine financial stability of the Proposer:

• Financial Statement or Annual Report

• Business tax return

• Statement of income and balance sheet

Addendum

Cost of Service and Rate Study | RFP UD26-345 | 14

During the advertising period, an addendum may be issued, which includes changes and/or additions to the original RFP. Proposers shall acknowledge the receipt of the addendum by signing and returning with their RFP. Proposers that do not include a posted Addendum with their RFP may be deemed non-responsive and their RFP may be rejected. Addendum submittal may not be accepted after the RFP due date. Addendums will be posted online at Long Beach Buys under the RFP number.

Proposer Contact Information (Attachment I) This form asks for general proposer information and sub-contractor information, if applicable. This form can be completed digitally, and must be included at the top of the proposal.

Authorization and Certification (Attachment II) This form constitutes an agreement to all terms and conditions specified in the RFP;

including without limitation, the sample agreement found in Appendix A and all terms and conditions therein, except such terms and conditions that the Proposer expressly excludes in the form itself.

Equal Benefits Ordinance (EBO) Form (Attachment III) A complete and signed Equal Benefits Compliance form is required for contracts that exceed $100,000. Proposers do not need to submit supporting documentation proving compliance. However, supporting documentation verifying that the benefits are provided equally shall be required if the proposer is selected for award of a contract.

3.1.2 Required Documents upon Award

The following documents will be required from awarded contractors upon award. We encourage you to take note of these requirements, and where possible, include these as part of your proposal to expedite processing:

W-9 Request for Taxpayer Identification Number and Certification Complete, sign, and attach to Proposal. Access a fillable PDF copy at http://www.irs.gov/pub/irs-pdf/fw9.pdf

Business License The Long Beach Municipal Code (LBMC) requires all businesses operating in the City of Long Beach to pay a business license tax. In some cases, the City may require a regulatory permit and/or evidence of a State or Federal license. Prior to issuing a business license, certain business types will require the business license application and/or business location to be reviewed by the Development Services, Fire, Health, and/or Police Departments. In accordance with Municipal Code (Section 3.80.210) a business license is required under the following conditions:

• If you are providing a service in Long Beach, CA

• If you are providing and delivering a product in Long Beach, CA https://usc-word-edit.officeapps.live.com/we/wordeditorframe.aspx?ui=en-US&rs=en-US&wopisrc=https%3A%2F%2Fppg23-my.sharepoint.com%2Fpersonal%2Fpamela_portocarrero_partnersforpublicgood_org%2F_vti_bin%2Fwopi.ashx%2Ffiles%2F6cfcfc439be845198bce7545f91caee8&wdpid=410e0e99&wdenableroaming=1&mscc=1&wdodb=1&hid=DD7C03A2-A0C4-C000-3F21-94678DAC1968.0&uih=sharepointcom&wdlcid=en-US&jsapi=1&jsapiver=v2&corrid=222e44d7-2f29-e2e8-c70f-1b3f22b9ad1e&usid=222e44d7-2f29-e2e8-c70f-1b3f22b9ad1e&newsession=1&sftc=1&uihit=docaspx&muv=1&ats=PairwiseBroker&cac=1&sams=1&mtf=1&sfp=1&sdp=1&hch=1&hwfh=1&dchat=1&sc=%7B%22pmo%22%3A%22https%3A%2F%2Fppg23-my.sharepoint.com%22%2C%22pmshare%22%3Atrue%7D&ctp=LeastProtected&rct=Normal&wdorigin=Other&afdflight=66&csiro=1&instantedit=1&wopicomplete=1&wdredirectionreason=Unified_SingleFlush#_ATTACHMENT_I:_PROPOSER http://www.irs.gov/pub/irs-pdf/fw9.pdf

Cost of Service and Rate Study | RFP UD26-345 | 15

For more information, contact the Business License Section at 562-570-6211 or by e-mail to lbbiz@longbeach.gov or visit www.longbeach.gov/finance/business_license

Proof of Registration with the California Secretary of State Awarded contractors must be registered with the California Secretary of State prior to contract execution. Please provide a printout showing your business is registered with the California Secretary of State. Individual and sole proprietor companies are not required to register. For more information, visit https://bizfileonline.sos.ca.gov/search/business

Certificates of Insurance As a condition precedent to the effectiveness of this contract, contractor shall procure and maintain at contractor’s expense for the duration of this contract from an insurance company that is admitted to write insurance in the State of California, or that has a rating of or equivalent to an A:VIII by A.M. Best and Company, the following insurance:

• Commercial general liability insurance equivalent in coverage scope to ISO CG 00 01 10 93 naming the City of Long Beach and its officials, employees, and agents as additional insureds on a form equivalent in coverage scope to ISO CG 20 10 11 85 from and against claims, demands, causes of action, expenses, costs, or liability for injury to or death of persons, or damage to or loss of property arising out of activities or work performed by or on behalf of the contractor in an amount not less than One Million Dollars (US $1,000,000) per occurrence and Two Million Dollars (US $2,000,000) in general aggregate. Such insurance shall not exclude coverage for liability resulting from cross liability protection.

• Workers’ compensation coverage as required by the Labor Code of the State of California and Employer’s liability insurance with minimum limits of One Million Dollars (US $1,000,000) per accident or occupational illness. The policy shall be endorsed with a waiver of the insurer’s right of subrogation against the City of Long Beach and its insurers, officials, employees, and agents.

• If use of a vehicle is part of the scope of services, commercial automobile liability insurance equivalent in coverage scope to ISO CA 00 01 06 92 in an amount not less than Five Hundred Thousand Dollars (US $500,000) combined single limit (CSL) covering Symbol 1 (“any auto”).

• Professional Liability or Errors and Omissions liability insurance in an amount not less than $1,000,000 per claim.

• Any self-insurance program or self-insurance retention must be approved separately in writing by City and shall protect the City of Long Beach and its officials, employees, and agents in the same manner and to the same extent as they would have been protected had the policy or policies not contained retention provisions. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, or canceled by either party except after thirty (30) days prior written notice to City, and shall be primary and not contributing to any other insurance or self-insurance maintained by City.

mailto:lbbiz@longbeach.gov http://www.longbeach.gov/finance/business_license https://bizfileonline.sos.ca.gov/search/business

Cost of Service and Rate Study | RFP UD26-345 | 16

Any subcontractors which contractor may use in the performance of this contract shall be required to indemnify the City to the same extent as the contractor and to maintain insurance in compliance with the provisions of this section.

Awarded Consultant shall deliver to the City certificates of insurance and original endorsements for approval as to sufficiency and form prior to the start of performance hereunder. The certificates and endorsements for each insurance policy shall contain the original signature of a person authorized by that insurer to bind coverage on its behalf.

“Claims-made” policies are not acceptable unless City Risk Manager determines that “Occurrence” policies are not available in the market for the risk being insured. If a “Claims-made” policy is accepted, it must provide for an extended reporting period of not less than three (3) years. Such insurance as required herein shall not be deemed to limit contractor’s liability relating to performance under this contract. City reserves the right to require complete certified copies of all said policies at any time. Any modification or waiver of the insurance requirements herein shall be made only with the approval of City Risk Manager. The procuring of insurance shall not be construed as a limitation on liability or as full performance of the indemnification provisions of this contract.

3.2 Submission Instructions and Timeline

MILESTONE

DATE &

TIME

(PACIFIC)

ADDITIONAL INFORMATION

RFP Release date July 28, Deadline for submitting Questions

August 4, 2026 at

11:00 am

• Submit all inquiries via email to Erin.Reyes@lbwater.org and Deanna.Rubalcaba@longbeach.gov

Final Posting of the Q&A August 11, 2026 at 11:00 am

• Responses to the questions will be posted as an addendum to this RFP on LongBeachBuys.com by the final posting date.

PROPOSALS DUE

August 18, 2026 at 11:00 am

• Proposals must be submitted electronically via LongBeachBuys.com

• Late proposals or proposals submitted through other channels will not be accepted.

• Proposers will receive an email with a time stamp from LongBeachBuys.com indicating that the proposal was submitted successfully.

• LBPUD will only receive proposals that were transmitted successfully.

• For technical support with Long Beach Buys, email LBPurchasing@longbeach.gov or call

(562) 570-6200 during normal business hours.

mailto:Erin.Reyes@lbwater.org mailto:LBPurchasing@longbeach.gov

Cost of Service and Rate Study | RFP UD26-345 | 17

Evaluation of RFP submissions

August 19,

• Evaluations will be conducted based on the evaluation criteria listed in Section 4.2

Interviews (if applicable -virtual)

August 21,

• LBPUD may interview or request demos from none, one, some or all proposers. See Section 4.2.

Negotiation & Contractor Selection TBD • For more information, see Section 4.3.2

Anticipated Contract Award September

Anticipated Contract Execution TBD

Proposer Debrief After

Contractor is Selected

• For more information, see Section 4.3.2

*LBPUD reserves the right to modify these dates at any time, with appropriate notice to proposers.

Cost of Service and Rate Study | RFP UD26-345 | 18

4. How We Choose

4.1 Minimum Qualifications

Proposals shall be consistently evaluated based upon the following criteria:

• Demonstrated competence

• Experience in comparable engagements

• Reasonableness of cost

• Expertise and availability of key personnel

• Financial stability

• Conformance with the terms of this RFP

To be considered for selection, the proposing consultant must meet following minimum requirements:

• Be regularly and continuously engaged in providing comprehensive cost of service, rate studies and rate analyses for municipal water, reclaimed water, wastewater, and/or ancillary utility services for a minimum of three (3) consecutive years immediately preceding the proposal submission deadline.

• Demonstrate successful completion of at least three (3) projects of similar scope, size, and complexity for public agencies or municipal utility providers within the past five (5) years.

• Demonstrate experience developing cost of service methodologies, revenue requirement analyses, rate design alternatives, financial forecasting, and implementation strategies consistent with industry best practices and applicable California laws, including Proposition 218, where applicable. Proposers shall identify any rate methodologies they proposed that have been subject to legal challenge and describe the outcome of those proceedings. Employ or have available qualified personnel with demonstrated experience in utility finance, rate modeling, cost allocation, financial planning, and public utility rate studies.

• Be legally authorized to conduct business in the State of California and obtain a City of Long Beach Business License prior to contract execution.

• Maintain all licenses, certifications, permits, and registrations required to perform the services described in this RFP.

• Be in good standing and not be suspended, debarred, or otherwise prohibited from contracting with any federal, state, or local governmental agency.

• Demonstrate the financial capacity and organizational resources necessary to successfully perform the Scope of Work throughout the term of the agreement.

• Maintain the insurance coverage required by the agreement prior to commencement of work.

Cost of Service and Rate Study | RFP UD26-345 | 19

4.2 Evaluation Criteria

An Evaluation Committee will review proposals based on the responses to all questions and requirements in this RFP to select the proposal that best meets the needs of the LBPUD. Proposals shall be consistently evaluated based upon the following criteria:

EVALUATION CRITERIA WEIGHT

1. Organizational Capacity & Experience

• Experience performing cost of service studies and rate analyses for municipal or public utility agencies.

• Qualifications and technical expertise of the proposed Project Manager and key personnel.

• Demonstrated success completing projects of similar scope, size, and complexity.

• Specialized experience in utility finance, rate design, and financial forecasting.

• Organizational capacity, available resources, and client references demonstrating successful project performance.

30%

2. Project Approach

• Demonstrated understanding of the project objectives, scope, and desired outcomes.

• Technical approach and methodology for completing the Scope of

Work and required deliverables.

• Identification of project risks, challenges, and proposed strategies to mitigate them.

• Quality and completeness of the proposed work plan, project schedule, milestones, and deliverables.

• Approach to communication, collaboration, and project management throughout the engagement.

40%

3. Project Management and Communications

• Project management approach, including communication, coordination, and responsiveness throughout the project.

• Quality assurance and quality control procedures to ensure accurate, complete, and compliant deliverables.

• Approach to collecting, validating, and managing project data and information.

• Proposed methods for reporting project progress, monitoring performance, and addressing project risks or issues.

• Ability to meet project milestones, deliverables, and overall program objectives while maintaining compliance with the requirements of the

RFP.

20%

4. Cost Proposal

• Budget and staffing allocation 10%

TOTAL POSSIBLE SCORE 100%

Cost of Service and Rate Study | RFP UD26-345 | 20

LBPUD may elect to interview a short list of qualified firms or to interview only the top-rated firm based on the proposals submitted for the project.

4.3 Selection Process, Award, and Protest Procedures

4.3.1 Selection and Award Process

The selected proposer will be notified in writing following completion of the evaluation process. Award of a contract is contingent upon the successful negotiation of the final scope of services, compensation, and contract terms. If negotiations with the highest-ranked proposer cannot be concluded successfully, LBPUD reserves the right to terminate negotiations and negotiate with the next highest-ranked proposer, reject all proposals, or take any other action authorized by this RFP. Negotiations shall remain confidential and will not be subject to disclosure to competing proposers until negotiations have concluded and the proposed award is presented to the appropriate awarding authority.

4.3.2 Protest and Appeals Process

Who May Protest Only a proposer who has actually submitted a proposal is eligible to protest a contract awarded through an RFP. A proposer may not rely on the protest submitted by another proposer but must pursue its own protest.

Time for Protest LBPUD will post a Notice of the Intent to Award a contract at least ten (10) business days before an award is made. The notice will be available to all proposers who submitted a proposal via the City’s electronic bid notification system at http://www.longbeach.gov/purchasing. A proposer desiring to submit a protest for a proposal must do so within five (5) business days of the electronic notification of intent to award. LBPUD must receive the protest by the close of business on the fifth (5th) business day following posting of notification of intent to award the contract. Proposers are responsible for registering with the City’s electronic bid notification system and maintaining an updated contractor profile. LBPUD is not responsible for proposers’ failure to obtain notification for any reason, including but not limited to failure to maintain updated email addresses, failure to open/read electronic messages and failure of their own computer/technology equipment. LBPUD’s RFP justification memo will be available for review by protestors once the notification of intent to award has been posted via the City’s electronic bid notification system.

Form of Protest The protest must be in writing and signed by the individual who signed the proposal or, if the proposer is a corporation, by an officer of the corporation, and addressed to LBPUD General Manager. Protests must be submitted via email to Erin.Reyes@lbwater.org and http://www.longbeach.gov/purchasing mailto:Erin.Reyes@lbwater.org

Cost of Service and Rate Study | RFP UD26-345 | 21

Deanna.Rubalcaba@longbeach.gov. Protests must include a valid email address and phone number. Protests must set forth a complete and detailed statement of the grounds for the protest and include all relevant information to support the grounds stated and must refer to specific portions of the RFP and attachments upon which the protest is based. Once the protest is received by LBPUD, LBPUD will not accept additional information on the protest unless LBPUD requests it.

LBPUD Response to Protest LBPUD or designee will respond with a decision regarding the protest within five (5) business days of receipt of protest to the email address provided in the protest. This decision shall be final.

Limitation of Remedy The procedure and time limits set forth herein are mandatory and are the proposer’s sole and exclusive remedy in the event of a protest. The proposer’s failure to comply with these procedures shall constitute a waiver of any right to further pursue a protest, including filing a Government Code Claim or initiation of legal proceedings.

mailto:deanna.rubalcaba@longbeach.gov

Cost of Service and Rate Study | RFP UD26-345 | 22

5. Terms and Conditions

5.1 Acronyms/Definitions

1. Agreement / Contract: Contract specifying the terms and conditions and defining the scope of services to be performed by the contractor for a specific project, or on a continuing on-call basis.

2. Awarded Consultant/ Consultant: The organization/individual that is awarded a contract with LBPUD for the services identified in this RFP.

3. City: The City of Long Beach and any department or agency identified herein.

4. Department / Division: Long Beach Public Utilities Department (LBPUD).

5. Evaluation Committee: An independent committee comprised solely of representatives of the City established to review proposals submitted in response to the RFP, evaluate the proposals, and select a contractor.

6. LBPUD: Long Beach Public Utilities Department.

7. May: Indicates something that is not mandatory but permissible.

8. Proposer: Organization/individual submitting a proposal in response to this RFP.

9. Proposition 218: State law governing water utility rate setting.

10. Public Utilities: A government agency that provides energy, sewer, or water services to the public.

11. RFP: Request for Proposal.

12. Shall / Must: Indicates a mandatory requirement. Failure to meet a mandatory requirement will result in the rejection of a proposal as non-responsive.

13. Should: Indicates something that is recommended but not mandatory. If the proposer fails to provide recommended information, the City may, at its sole option, ask the proposer to provide the information or evaluate the proposal without the information.

14. Subcontractor: Third party not directly employed by the contractor who will provide services identified in this RFP.

5.2 Solicitation Terms & Conditions

5.2.1 Changes to the RFP

1. LBPUD reserves the right to alter, amend, or modify any provisions of this RFP, or to withdraw this RFP, at any time prior to the award of a contract pursuant hereto, if it is in the best interest of LBPUD to do so.

2. Any irregularities or lack of clarity in the RFP should be brought to the LBPUD designee's attention as soon as possible so that corrective addenda may be furnished to proposers.

3. Alterations, modifications or variations to a proposal may not be considered unless authorized by the RFP or by addendum or amendment.

5.2.2 Proposal Content

1. Proposals must include any and all proposed terms and conditions, including, without limitation, written warranties, maintenance/service agreements, license

Cost of Service and Rate Study | RFP UD26-345 | 23 agreements, lease purchase agreements and the contractor’s standard contract language. The omission of these documents may render a proposal non-responsive.

2. The price and amount of this proposal must have been arrived at independently and without consultation, communication, agreement or disclosure with or to any other contractor or prospective contractor.

3. A proposal submitted in response to this RFP must identify any subcontractors and outline the contractual relationship between the contractor and each subcontractor. An official of each proposed subcontractor must sign and include as part of the proposal submitted in response to this RFP, a statement to the effect that the subcontractor has read and will agree to abide by the contractor’s obligations.

4. If the consultant elects to use subcontractors, LBPUD requires that the Awarded Consultant provide proof of payment of any subcontractors used for this project. Proposals shall include a plan by which LBPUD will be notified of such payments.

5. Each Consultant must adhere to the City’s Contractor Code of Conduct, including, but not limited to, disclose any existing or potential conflict of interest relative to the performance of the contractual services resulting from this RFP. Any such relationship that might be perceived or represented as a conflict should be disclosed. LBPUD reserves the right to disqualify any Proposer on the grounds of actual or apparent conflict of interest.

6. Each consultant must include in its proposal a complete disclosure of any alleged significant prior or ongoing contract failures, any civil or criminal litigation or investigation pending which involves the consultant or in which the contractor has been judged guilty or liable. Failure to comply with the terms of this provision will disqualify any proposal. LBPUD reserves the right to reject any proposal based upon the contractor’s prior history with the City or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failure(s) to meet contract milestones or other contractual failures.

7. Consultants are advised that any contract awarded pursuant to this procurement process that exceeds $100,000 shall be subject to the applicable provisions of Long Beach Municipal Code Section 2.73 et seq, the Equal Benefits Ordinance. All contractors shall complete and return, with their proposal, the Equal Benefits Ordinance Compliance form contained in Attachment III, if applicable. Unless otherwise specified in the procurement package, contractors do not need to submit with their proposal supporting documentation proving compliance. However, supporting documentation verifying that the benefits are provided equally shall be required if the contractor is selected for award of a contract.

5.2.3 Proposal Evaluation

1. The level and term of documentation required from the consultant to satisfy

LBPUD will be commensurate with the size and complexity of the contract and consultants should submit accordingly. If the information submitted by the https://longbeach.gov/globalassets/finance/media-library/documents/business-info/purchasing-division/final-vendor-code-of-conduct-2023

Cost of Service and Rate Study | RFP UD26-345 | 24 consultant or available from other sources is insufficient to satisfy LBPUD as to the consultant’s contractual responsibility, LBPUD may request additional information from the consultant or may deem the proposal non-responsive.

2. LBPUD may contact the references provided; contact any consultant to clarify any response; contact any current users of a consultant’s services; solicit information from any available source concerning any aspect of a proposal; and seek and review any other information deemed pertinent to the evaluation process.

3. LBPUD reserves the right to waive informalities and minor irregularities in proposals received.

4. If LBPUD receives a single responsive, responsible proposal, LBPUD may request an extension of the proposal acceptance period and/or conduct a price or cost analysis on such proposal.