Water and Wastewater (Sewer) Rate Study and Annual Proposition 218 True-Up Analysis Service

The City of Milpitas is requesting proposals for consultant services to conduct a Proposition 218 cost-of-service and rate study establishing water and sewer rates for fiscal years 2028-29 through 2032-33, plus annual true-up analyses, with proposals due December 2, 2026.

The scope encompasses a comprehensive rate study covering data collection, financial planning, cost-of-service allocation to functional components and customer classes, rate design alternatives (minimum two per utility), capital funding and reserve analysis, 10-year financial outlook, and sensitivity analyses for variables including water sales decline and imported water cost increases. Deliverables include a rate study report, Excel-based rate model with dashboard, and community outreach materials (up to eight print and online pieces). The consultant must facilitate three onsite public workshops, two City Council study sessions, at least one Proposition 218 public hearing, and ongoing monthly progress meetings with monthly reporting and budget tracking via SharePoint. Annual true-up services extend through fiscal year 2032-33. A project manager designated by the consultant cannot be removed or reassigned without prior City consent. The consultant may use subconsultants for community outreach services but remains the single point of contact and fully responsible for all work.

Contract term runs March 1, 2027, through December 31, 2034 (seven contract years, with Year 1 spanning approximately 16 months and Year 7 spanning 18 months). Compensation is on a not-to-exceed basis with fully loaded hourly rates including fringe, indirect costs, and profit. Evaluation of proposals is based on the Total Base Bid for all seven contract years across both water and wastewater components; an optional task for up to two additional workshops is available but excluded from cost evaluation.

Insurance requirements include Commercial General Liability at $1,000,000 per occurrence, Automobile Liability at $1,000,000 combined single limit, and Professional Liability (Errors and Omissions) at $1,000,000 per occurrence/$2,000,000 aggregate. The City is named as an additional insured. Prevailing wage requirements under California Labor Code apply if applicable. Proposers must submit all required certifications and forms, including references documenting three similar engagements within the last three years, and may take exceptions only through detailed written submissions identifying the specific section, proposed revised language, and basis.