2025 Water & Sewer Rate and Connection Fee Study

The City of Birmingham, Michigan is seeking qualified professional firms to conduct a comprehensive 2025 Water and Sewer Rate and Connection Fee Study through a sealed bid proposal process. The procurement opportunity, posted on April 14, 2025, with proposals due by May 1, 2025 at 2:00 pm, targets professional consulting firms specializing in utility rate analysis and financial modeling. The primary deliverables include a thorough review of the city's existing water and sewer rate model, analysis of historical demand and financial data, examination of current and future capital expenditures, and development of recommendations for a self-supporting utility rate structure. The city requires the consultant to utilize industry standards such as the AWWA M1 manual and WEF M.O.P. #27 for utility rate-making, ensure compliance with Michigan statutes and EGLE recommendations, and consider the Bolt v Lansing legal decision. The project scope encompasses the city's extensive water infrastructure, which includes approximately 100 miles of water main serving 21,434 residents with 9,156 water services, and approximately 116 miles of combined storm, sanitary, and combined sewer lines.

While no specific set-aside designations or disadvantaged enterprise requirements are explicitly mentioned in the documentation, the RFP suggests a comprehensive evaluation process for potential consultants. The contract term will run through September 30, 2025, with the final study to be completed by that date, and the city anticipates selecting a consultant by May 9, 2025. The project involves analyzing an infrastructure network that experiences 50-75 new home applications and 1-5 new commercial building applications annually. Although a specific budget range is not disclosed, the study aims to provide a sustainable rate structure that maintains appropriate cash balances while adhering to federal, state, and local accounting rules and best practices. Interested firms should prepare detailed proposals that demonstrate expertise in municipal utility rate analysis, financial modeling, and a deep understanding of water and sewer infrastructure economics.