Water, Wastewater, and Natural Gas Rate Study Services #2026-RFP-003

CITY OF BENSON, AZ

Project ID: 2026-RFP-003

REQUEST FOR PROPOSAL

PROJECT TITLE: WATER, WASTEWATER, AND NATURAL GAS RATE

STUDY SERVICES

City of Benson

101 E. 6th Street

Benson, AZ 85602

RELEASE DATE: Thursday, November 13, 2025

PRE-PROPOSAL CONFERENCE: Tuesday, November 18, 2025

DEADLINE FOR QUESTIONS: Monday, November 24, 2025 10:00 am

RESPONSE TO QUESTIONS: Monday, December 1, 2025

RESPONSE DEADLINE: Friday, December 5, 2025 3:00 pm

RESPONSES MUST BE SUBMITTED ELECTRONICALLY TO:

https://procurement.opengov.com/portal/bensonaz

Table Of Contents

1. NOTICE

2. INTRODUCTION

3. SCOPE OF WORK

4. PROPOSAL DETAILS AND CRITERIA

5. EVALUATION CRITERIA

6. PRICING

7. INSURANCE REQUIREMENTS

8. STANDARD TERMS AND CONDITIONS

9. VENDOR QUESTIONNAIRE

PUBLIC NOTICE OF SOLICITATION

SOLICITATION # 2026-RFP-003

Thursday, November 13, 2025 Request for Proposal Water, Wastewater, and Natural Gas Rate Study Services PROPOSAL DUE DATE AND TIME: Friday, December 5, 2025, 3:00 pm Local Arizona Time

Notice is hereby given proposals will be received by the City of Benson, electronically at https://procurement.opengov.com/portal/bensonaz, until the date and time cited above. Proposals received by the correct date and time will enter the evaluation process.

Issue RFP Date Thursday, November 13, 2025

Pre-Proposal Meeting via Zoom Tuesday, November 18, 2025 1:00 pm local Arizona time

Questions due from Proposers Monday, November 24, 2025 10:00 am local Arizona time

City of Benson response to Questions Monday, December 1, 2025 4:00 pm local Arizona time

Proposal Due Date Friday, December 5, 2025 3:00 pm local Arizona time

Proposals must be submitted to our e-procurement system, on or prior to the exact date and time indicated above.

Late submittals shall not be considered under any circumstances.

Questions concerning this solicitation should be submitted directly through the e-procurement portal https://procurement.opengov.com/portal/bensonaz, email questions or attempts to call and ask questions will not be considered official questions and will not be answered.

NOTE: THE CITY OF BENSON PUBLISHES ITS SOLICITATIONS, ATTACHMENTS, AND ADDENDA ONLINE AND THEY ARE AVAILABLE FOR VIEWING AND/OR DOWNLOADING AT THE FOLLOWING INTERNET ADDRESS: https://pro curement.opengov.com/portal/bensonaz.

2. INTRODUCTION

https://procurement.opengov.com/portal/bensonaz https://procurement.opengov.com/portal/bensonaz

2.1. Summary

The City of Benson is undertaking a comprehensive rate study to evaluate and update its utility rates for water, wastewater, and natural gas services. The primary goal of this project is to ensure that utility rates are fair, equitable, and sufficient to cover the city’s operational, maintenance, and capital improvement needs over the next several years. The study will analyze historical and projected usage data, classify customer groups based on their service demands, and allocate costs according to industry standards.

Vendor participating in this project will help develop alternative rate structures, assess their financial impacts, and recommend solutions that promote cost recovery, conservation, and regulatory compliance.

The project also includes preparing clear reports, presenting findings to city officials and the public, and providing a dynamic rate model for ongoing financial planning. Ultimately, this effort will support the city in maintaining reliable utility services while ensuring transparency and fairness for all customer classes.

2.2. Background

The City of Benson is seeking a qualified vendor to conduct a new comprehensive utility rate study, as the previous rate studies have expired. This project will focus specifically on evaluating and recommending updates to the base fees, unit fees, and connection fees for the City’s water, wastewater, and natural gas utilities. It is important to note that the scope of this study does not include impact fees. The selected vendor will be expected to review current rate structures, analyze historical and projected usage data, and ensure that the proposed rates are equitable, sufficient, and compliant with industry standards and regulatory requirements. Additionally, the vendor will prepare detailed reports summarizing their findings and recommendations, and present these results to City staff, elected officials, and the public as needed.

To be considered, vendors must demonstrate proven experience in conducting utility rate studies for municipal water, wastewater, and natural gas systems. This experience should include developing rate structures, perform cost allocation, and provide actionable recommendations for communities similar in size to Benson. The City is looking for a collaborative partner who can communicate effectively with staff and stakeholders throughout the project.

The final deliverables should include a dynamic rate model and supporting documentation to facilitate ongoing financial planning and rate evaluation. The City values clear communication, transparency, and a thorough approach to ensure the long-term sustainability and fairness of its utility rate structures.

2.3. Timeline

Release Project Date: November 13, 2025

Pre-Proposal Meeting (Non- Mandatory):

November 18, 2025, 1:00pm

Zoom Link: Join Zoom Meeting https://us06web.zoom.us/j/878788538 92?pwd=vbeQkMsd5s6DdCvh7U6R0qb ZQnn83F.1

View meeting insights with Zoom AI Companion https://us06web.zoom.us/launch/edl?

muid=deea3058-7935-40fd-b958- 30bbc1938b96

Meeting ID: 878 7885 3892 Passcode: 558663

Question Submission Deadline: November 24, 2025, 10:00am

Question Response Deadline: December 1, 2025, 4:00pm

Proposal Submission Deadline: December 5, 2025, 3:00pm

3. SCOPE OF WORK

3.1. Scope of Work – Utility Rate Study

The City is seeking proposals from qualified firms to conduct a comprehensive utility rate study for its water, wastewater, and natural gas services. The objective of this project is to evaluate current rate structures and develop recommendations that ensure rates are fair, equitable, and sufficient to meet the City’s operational, maintenance, and capital improvement needs.

Key tasks include:

• Financial Analysis: Review historical and projected utility revenues, expenses, and capital requirements. Assess factors such as peak demand impacts, inflation, reserve requirements, and funding alternatives.

• Customer Classification: Analyze customer usage patterns and group customers into appropriate classes based on service demands. Ensure cost allocation reflects each group’s impact on the utility system.

• Cost Allocation: Apply industry-standard methodologies to functionalize, classify, and allocate utility costs to customer classes in a manner that promotes fairness and transparency.

• Rate Design: Develop and evaluate alternative rate structures for both the current year and a multi-year forecast period. Assess the financial impacts of each alternative, including considerations for conservation, equity, and regulatory compliance.

https://us06web.zoom.us/j/87878853892?pwd=vbeQkMsd5s6DdCvh7U6R0qbZQnn83F.1 https://us06web.zoom.us/j/87878853892?pwd=vbeQkMsd5s6DdCvh7U6R0qbZQnn83F.1 https://us06web.zoom.us/j/87878853892?pwd=vbeQkMsd5s6DdCvh7U6R0qbZQnn83F.1 https://us06web.zoom.us/launch/edl?muid=deea3058-7935-40fd-b958-30bbc1938b96 https://us06web.zoom.us/launch/edl?muid=deea3058-7935-40fd-b958-30bbc1938b96 https://us06web.zoom.us/launch/edl?muid=deea3058-7935-40fd-b958-30bbc1938b96

• Reporting and Presentation: Prepare clear and concise draft and final reports summarizing findings, methodologies, and recommendations. Present results to City staff, elected officials, and the public as needed.

• Project Management: Maintain effective communication with City representatives throughout the project, ensuring timely delivery and quality control of all work products.

The selected firm will be expected to provide a dynamic rate model and supporting documentation to facilitate ongoing financial planning and rate evaluation. Proposals should demonstrate relevant experience, technical approach, and the ability to collaborate effectively with City staff and stakeholders.

4. PROPOSAL DETAILS AND CRITERIA

4.1. Definition Of Key Words Used In The Solicitation

For purposes of this solicitation and any subsequent contract, the following terms have the meanings set forth below:

City: The City of Benson, Arizona Contract:The legal agreement(s) executed between City and the Successful Offeror(s). The Contract will be deemed to include all the conditions and requirements set forth in this solicitation and any Addenda to the solicitation, all the Special Terms and Conditions and Standard Terms and Conditions, and all the terms of the Offer submitted by Offeror as finally negotiated and accepted by the City.

Contractor/Consultant:A Successful Offeror that enters into a Contract with the City.

Contract Representative: The City employee or employees who have been designated to act as the City contact for this solicitation process and who are responsible for monitoring and overseeing the Contractor's performance under the Contract.

City Manager:The contracting authority for the City, authorized to sign contracts and addenda thereto on behalf of the City.

May: Indicates something that is not mandatory but permissible.

May not: The indicated party is prohibited from taking the action.

Must: The action or condition is required.

Offer: Any proposal, statement of qualifications, bid, or other submission provided by an Offeror in response to this Solicitation.

Offeror: Each individual or entity that submits an Offer in response to this solicitation.

Successful Offeror: An Offeror who received a Notice of Award or a Notice of Intent to Award from the City.

Will: The indicated party is promising to take the action or abide by the condition.

4.2. Pre-Submittal Meeting

A Pre-Submittal Meeting will be held at the date and time stated in the INTRODUCTION of this solicitation, if such a date and time is provided. Attendance at this meeting is not mandatory, but written minutes and/or notes regarding the meeting will NOT be provided, so attendance is encouraged. The purpose of this meeting will be to clarify the contents of this solicitation in order to prevent any misunderstanding of the City's position.

4.3. Inquiries

https://procurement.opengov.com/portal/bensonaz/projects/213730/document?section=2003619

Any questions about this solicitation or the proposed Contract must be presented at the Pre-Submittal Meeting, if there is one (see above), or submitted through the online bidding system, by the Question Submission Deadline. The question must refer to the solicitation number and the paragraph number of the provision that the question concerns. The Contract Representative may respond, if they deem it appropriate, address the question in a solicitation addendum or respond through the question-and-answer portal in the online bidding system. Offeror may not rely on oral interpretations or clarifications about the solicitation; only questions answered through the online bidding system or posted as a formal solicitation addendum will be binding.

4.4. Addendum Of Solicitation

Solicitation Addenda will be posted on the City’s online bidding website. Offeror is responsible for checking the online bidding website regularly for new solicitation addenda and must acknowledge each addendum to this solicitation in its submittal. Please note that vendors who have registered with OpenGov at https://procurement.opengov.com/portal/bensonaz will receive email notifications of solicitation addenda.

4.5. Understanding Scope Of Work

Before submitting an Offer to this solicitation, Offeror must familiarize itself with the Scope of Work, laws, regulations, physical conditions, and other factors affecting the obligations – including the expense and difficulty of fulfilling those obligations – that Offeror will have under the Contract if awarded to Offeror.

No adjustment to the financial or other terms of the Contract will be justified by Offeror’s failure to fully understand or appreciate the Contract requirements or other factors affecting Contract performance.

4.6. Proposal Contents Required under the Vendor Questionnaire

A. The City requests that the Offeror use the pricing table provided in Section six (6) to enter the proposed fee.

B. The RFP Cover Page must be completed, signed by the Contractor's authorized signatory, and uploaded under the title 'Cover Page'.

C. Provide the business name(s), business address(es), phone number(s), and email address(es) of all applicable points of contact.

D. Upload a current IRS Form W-9 for the business.

E. The Offeror shall provide a statement of availability and expected timeline for completing the Scope of

Work.

F. A detailed description of the Offeror’s approach to delivering the proposed Scope of Work.

G. Resumes, certificates, training for individuals involved in performance of the Scope.

H. References from at least three (3) current or recent projects for the same or similar services to include letter(s) of recommendation.

I. Confidential Information. Any information in its submittal that Offeror wishes to be treated as confidential must be clearly marked “CONFIDENTIAL.”

Failure to include all requested information may have a negative impact on the evaluation of Offeror's submittal.

4.7. Payment Discounts

Payment discount periods shall be computed from the date of receipt of the material/service or correct invoice, whichever is later, to the date City’s payment warrant is mailed. Unless freight and other charges are itemized, any discount provided shall be taken on full amount of invoice. Payment discounts of twenty-one calendar days or more shall be deducted from the proposed price in determining the price points. However, the City shall be entitled to take advantage of any payment discount offered by a vendor provided payment is made within the discount period. The payment discount shall apply to all purchases and to all payment methods.

4.8. Taxes

The City is exempt from federal excise tax, including the federal transportation tax, but is not exempt from any other taxes, including state and local sales taxes.

4.9. Exception To Contract Provisions

By submitting an offer in response to this solicitation, Offeror is offering to enter into the Contract with the City. If Offeror wishes to modify any Contract terms and conditions, Offeror must, in its Offer, clearly identify the changes it is requesting. No requested modification will be deemed accepted by the City unless and until the City Manager or their designee expressly accepts it in writing.

4.10. Public Record

Any documents submitted by Offeror in response to this solicitation will become the property of the City.

Except as set forth below with respect to Confidential Information, the Submittal will be deemed to be a public record available for review by the public after the award notification.

4.11. Confidential Information

The City is obligated to abide by the Arizona Public Records Law, A.R.S. §§ 39-101 through 39-161. If Offeror believes that any portion of its Offer, specification, protest or correspondence contains information that is confidential and subject to being withheld from disclosure in the event that the City receives a public records request to which the record is responsive, Offeror must, when the record is submitted, provide the Contract Officer written notification of that fact. The records or portions of records that Offeror wishes to be treated as confidential must also be clearly marked “CONFIDENTIAL” on their face. Pricing will not be treated as confidential.

If the City, after award notification, receives a public-records request the scope of which includes a document submitted by Offeror and marked "CONFIDENTIAL", the Contract Officer will make a written determination regarding whether the document will be provided to the requestor. If the Contract Officer determines that the document should be released, City will notify Offeror in writing. Unless Offeror, within 10 days after the date of that notice, obtains and provides to City an order from a court of competent jurisdiction prohibiting the City from releasing the documents, the City may release the documents without any liability to Offeror.

4.12. When And How To Submit Offers

In order to be considered, Offeror must, no later than 3:00 pm on Friday, December 5, 2025, submit its Offer electronically through the City’s online eProcurement system:

NOTE: THE ENTIRE OFFER MUST BE IN SUBMITTED THROUGH THE CITY’S ONLINE BIDDING SYSTEM IN ORDER TO BE CONSIDERED. RESPONSES THAT HAVE BEEN CREATED IN THE SYSTEM BUT HAVE NOT BEEN

SUBMITTED BY THE OFFER SUBMITTAL DEADLINE WILL NOT BE CONSIDERED.

4.13. Certification Of Non collusion; Conflicts Of Interest

Offeror will not communicate, orally or in writing, with any member of the Mayor and Council, or with any City staff outside the Procurement Division of the Finance Department regarding this Solicitation. By submitting an Offer, Offeror warrants that:

A. Preparation and submission of the submittal did not involve collusion or other anti-competitive practices.

B. Offeror has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, meal or service to a public servant in connection with this solicitation.

C. No person has been employed or retained to solicit or secure a Contract under this solicitation upon a promise of a commission, percentage, brokerage, or contingent fee.

D. No employee of the City involved in this Solicitation process, or any family member of such an employee, has any substantial financial interest in Offeror’s firm. No member of the City of Benson

Mayor and Council who has, or whose family member has, any substantial financial interest in

Offeror’s firm will participate in any action taken by the Mayor and Council with respect to this

Contract. The terms “relative” and “substantial interest” have the meanings assigned in A.R.S. § 38-

502.

The City may disqualify Offeror from further participation in the solicitation process if the City determines that any City employee or official involved in this Solicitation process has an actual or apparent conflict of interest or if Offeror has engaged in any collusion or anti-competitive practices.

4.14. Withdrawal Of Offer; Binding Offer

By submitting an Offer in response to this Solicitation, Offeror is offering to enter into the Contract with the City. Offeror may withdraw a submitted Offer at any time prior to the Offer Submittal Deadline.

Telephonic or oral withdrawals are not effective.

Offeror cannot withdraw an Offer that is in “submitted” status as of the Offer Submittal Deadline unless the Procurement Director consents in writing to the withdrawal. The Offer will be irrevocable for 90 days after the Offer Submittal Deadline.

4.15. Discussions

The City may, at its discretion, conduct discussions with Offeror for the purpose of eliminating minor irregularities, informalities, or apparent clerical mistakes in Offeror’s submittal in order to clarify the offer and assure full understanding of, and responsiveness to solicitation requirements.

4.16. Vendor Registration; Business License

Upon issuance of Notice of Intent to Award, Offeror must:

A. Register with the City of Benson. Registration can be completed by contacting the City Finance Department at (520) 586-2245, Option 1 or email utilities@bensonaz.gov.

mailto:utilities@bensonaz.gov

B. Obtain a City of Benson Business License or a written determination from the City's Finance Department that a license is not required. The Business License application can be found online at https://www.bensonaz.gov/departments/business_license.php. For questions contact the City's Finance Department at (520) 586-2245 Option 1 or email at utilities@bensonaz.gov

5. EVALUATION CRITERIA

Proposals will be evaluated based on the criteria outlined below, with a maximum of 100 points available.

Both price and non-price factors will be considered. The evaluation process will identify the top-rated proposal(s) that represent the best overall value to the City for the award of the resulting contract.

No. Evaluation Criteria Scoring Method Weight (Points)

1. Capability & Technical Approach

The Contractor's overall technical approach will be evaluated to assess the City's level of confidence in the Contractor's understanding of, approach to, and ability to successfully perform the requirements as described in the Scope.

0-100 Points 30 (29.7% of Total)

2. Experience

Contractor's background and experience regarding recent projects for the same or similar services will be assessed to determine the likelihood that the Contractor can successfully perform the requirements.

0-100 Points 25 (24.8% of Total)

3. Qualifications of Proposed Team

The Contractor’s proposed team will be assessed to determine whether the Contractor meets the qualification requirements to perform the Scope.

0-100 Points 20 (19.8% of Total)

4. Price

The Contractor’s price will be evaluated for completeness, reasonableness, and compatibility in relation to the requirements.

0-100 Points 16 (15.8% of Total)

5. Professional References

Respondent's submitting at least three

(3) and no more than five (5) professional references that have agreed to be contacted. Letters of Recommendations will be accepted.

0-100 Points 5 (5% of Total) https://www.bensonaz.gov/departments/business_license.php mailto:utilities@bensonaz.gov

6. General quality and responsiveness of overall proposal

The degree to which the Contractor has addressed the purpose and scope of the RFP, including:

• The clarity and completeness of the proposed services to be provided

• Conformance with the specifications and requirements outlined in this

RFP

0-100 Points 5 (5% of Total)

6. PRICING

PROPOSAL PRICE

Line Item Description Service Total Price

1 CITY OF BENSON - WATER, WASTEWATER, &

NATURAL GAS RATE STUDY SERVICE

Service

7. INSURANCE REQUIREMENTS

7.1. Required Insurance Policies

No contractor shall commence work under the contract until all insurance required has been obtained.

Contractor will maintain during the entire term of this Contract and for 2 years after the Contract term ends, the following insurance coverage from insurers that have an “A.M. Best” rating of not less than A-

VII:

7.2. Commercial General Liability

Policy must include Bodily Injury, Property Damage, Personal Injury and Broad Form Contractual Liability with coverage limits no lower than:

A. Each Occurrence: $1,000,000

B. General Aggregate: $2,000,000

C. Products & Completed Operations Aggregate: $2,000,000

D. Personal and Advertising Injury: $1,000,000

E. Blanket Contractual Liability: $1,000,000

7.3. Commercial Automobile Liability

Policy must include bodily injury and property damage, for any owned, hired, and/or non-owned vehicles used in performance of work under this Contract, with a Combined Single Limit no lower than $1,000,000.

7.4. Worker's Compensation

Policy must have coverage limits no lower than:

A. Per Occurrence: Statutory

B. Employer's Liability: $1,000,000

C. Disease Each Employee: $1,000,000

D. Disease Policy Limit: $1,000,000

E. [If Contractor is a Sole Proprietor, include this waiver provision under A.R.S. § 23-961(M). To determine whether the Contractor is a Sole Proprietor, please request the Sole Proprietor/Independent

Contractor form from the Contract Officer listed in the solicitation.] I am a sole proprietor, and I am doing business as [name of sole proprietor business]. I am performing work as an independent contractor for the City of Benson. I am not the employee of the City of Benson for workers' compensation purposes, and, therefore, I am not entitled to workers' compensation benefits from the

City. I understand that if I have any employees working for me, I must maintain workers' compensation insurance on them.

7.5. Professional Liability (Errors & Omissions)

Policy must have coverage limits no lower than:

A. Each Claim: $1,000,000

B. Annual Aggregate: $2,000,000

7.6. Policy Change Notice

Contractor will give the City 30 days advance written notice before any of the above policies are changed in any manner that is inconsistent with the requirements of this Contract. The notice must be sent directly to the Procurement Division of the Business Services Department.

7.7. Additional Insured

The Commercial General Liability, Commercial Automobile Liability and umbrella policies where applicable will include the City as an additional insured with respect to liability arising out of the performance of this contract. The City must be covered to the full policy limits, even if those limits of liability are in excess of those required by this Contract. The coverage must be primary and any insurance carried by City is excess and not contributing.

7.8. Verification of Coverage

A. Contractor will give the City certificates of insurance (ACORD form or equivalent approved by the City), signed by an authorized representative of the insurer, showing that the Contractor has all the insurance required by this Contract.

B. Contractor must deliver the certificates directly to the Procurement Division of the City’s Business

Services Department before the Contractor commences work under this Contract.

C. The certificates must contain the City project/contract number and project description.

D. The City reserves the right to require complete copies of all insurance policies required by this Contract at any time.

7.9. Subcontractors

Contractors’ insurance certificate(s) must include all subcontractors as insureds under its policies or Contractor must give the City separate certificates and endorsements for each subcontractor showing that each subcontractor has the insurance coverage described above.

8. STANDARD TERMS AND CONDITIONS

The City of Benson reserves the right to waive any formalities and to reject or negotiate any and all proposals without assigning any reason.

8.1. Awards & Contract

The City of Benson reserves the right to award one or more contracts if it deems to be in the best interest of the City. The City of Benson reserves the right to waive any formalities and to reject or negotiate any and all proposals without assigning any reason. Execution of the contract is subject to the approval of the City Manager and City Council.

8.2. Budgetary Funding

It is understood by and between the parties hereto that the contract awarded after this RFP shall be deemed executory only to the extent of the monies appropriated and available for the purpose of this contract and no liability on account thereof shall be incurred by the City beyond monies appropriated and available for the purpose thereof.

8.3. Termination

The City of Benson reserves the right to terminate the contract awarded pursuant to this RFP, or any part of said contract, within thirty (30) days written notice of the City of Benson’s intent to do so by the City Manager.

8.4. Commencement of Work

The City will notify the successful Respondent of its intent to accept the proposal it deems to be most advantageous to the City. Within ten days of the City’s notice, the successful Respondent shall provide a professional and criminal background check at the Respondent's cost.

Contractor will not commence any billable work or provide any material or service under this Contract until Contractor receives a purchase order or is otherwise directed to do so, in writing, by the City.

8.5. Confidentiality of Records

Contractor will establish and maintain procedures to ensure that no information contained in its records or obtained from the City or from others in carrying out its functions under this Contract is used or disclosed by it, its agents, officers, or employees, except as required to efficiently perform its duties under the Contract, and will take appropriate measures to protect any personal identifying information of any individuals.

9. VENDOR QUESTIONNAIRE

1. Cover Letter*

Upload cover letter here.

*Response required

2. Provide the business name(s), business address(es), phone number(s), and email address(es) of all applicable points of contact.*

*Response required

3. Current W-9*

*Response required

4. The Offeror shall provide a statement of availability and expected timeline for completing the

Scope of Work.*

Maximum response length: 2000 characters *Response required

5. The Offeror shall provide a detailed description of their approach to delivering the proposed

Scope of Work.*

Copy and paste your response here.

Maximum response length: 5000 characters

*Response required

6. Resumes, certificates, training for individuals involved in performance of the Scope*

*Response required

7. Relevant experience, including the scope, for the same or similar projects within the past five (5) years. *

Maximum response length: 1000 characters *Response required

8. References from at least three (3) current or recent projects for the same or similar services to include letter(s) of recommendation.*

*Response required