Cost of Service

The Long Beach Public Utilities Department is requesting proposals for a comprehensive cost of service and rate study for potable water, reclaimed water, sewer, and ancillary services under RFP UD-26-345, with proposals due August 18, 2026 at 11:00 a.m.

Proposers must demonstrate three consecutive years of experience providing comprehensive cost of service and rate studies for municipal water, reclaimed water, wastewater, and ancillary utility services, with successful completion of at least three similar projects for public agencies within the past five years. This experience requirement is the primary capability filter.

The scope includes evaluating the Department's existing rate structures, preparing comprehensive cost-of-service analyses, developing alternative rate structure recommendations consistent with Proposition 218 requirements, estimating five-year revenue requirements, recommending annual rate adjustments, and providing training and guidelines to LBPUD Financial Services staff. Draft reports are due March 15, 2027, with a final draft report due no later than March 29, 2027, and Board presentations scheduled for April 8, 2027. Subcontractors may be used with prior written approval.

The contract term is two years with the option to renew for three additional one-year periods, for a maximum term of five years. Cost proposals must identify annual not-to-exceed compensation for each year and total contract value. Required insurance includes commercial general liability of $1 million per occurrence and $2 million general aggregate, professional liability or errors and omissions of $1 million per claim, and workers' compensation as required by California Labor Code. The contract is subject to Long Beach Municipal Code provisions including the Equal Benefits Ordinance for contracts exceeding $100,000.

Questions are due August 4, 2026 at 11:00 a.m., with responses posted by August 11, 2026. Evaluation of submissions occurs August 19, 2026, with interviews potentially scheduled for August 21, 2026. Contract award and notice to proceed are anticipated in September 2026. Proposals must be submitted electronically via LongBeachBuys.com.