This is a service / maintenance or supply contract in Hesperia, California. Contact the soliciting agency for additional information.

The City of Hesperia's Finance Division (City) is seeking qualified professional firms (Consultant) to submit a proposal to provide a water, wastewater, & recycled water rate study for the Hesperia Water District (District). Proposals shall conform to the provisions set forth herein. The objective is to enter into a 6-month contract with the selected Consultant for a water, wastewater, & recycled water rate study. The City contact (Contact) for this Request for Proposal (RFP) is the sole point of contact for this procurement. All communication shall be in writing and submitted to the Contact as designated below. Consultants are not permitted to communicate with other City staff or officials about this RFP, except during pre-proposal meetings and/or interviews, unless otherwise directed by the Contact. Direct written questions and/or correspondence related to this RFP to: Jonathan Settle - Accountant E-mail: purchasing@cityofhesperia.us Consultants interested in participating in this RFP should immediately provide the Contact with a telephone number, fax number, and an e-mail address for dissemination of addenda and/or supplemental information, as applicable. Failure to provide said contact information may result in late notifications and/or incomplete proposals. (See Section V for proposal submittal address). Any questions regarding the RFP must be submitted to the Contact referenced above no later than Monday, April 30, 2025. Reference the RFP Number and Title when making inquiries. The District is seeking proposals from qualified professional consulting firms to assist the District by analyzing its current rate structure for water, sewer and recycled water services, and evaluating the District's rates to ensure that revenues are projected to be sufficient to cover expenses, including operations, maintenance, capital improvements, and debt. The proposal should address the following areas of expertise that may be needed for this project: A. Perform a fully allocated water, sewer, and recycled water rate study tailored for the District, including the following: a. The development of forecasts and projections incorporating District's anticipated growth rates, projected cost escalation factors, long-term capital repairs and replacements, as well as water demand, supply and cost; b. A rate structure based upon cost of service sufficient to meet the short and long term revenue requirements of the water, sewer and recycled water system; c. Separately identify those portions of system revenues that fund water, sewer, and recycled system operating costs; d. A rate structure that considers and makes provisions for the following factors: i. Current and future cost of providing water, sewer, and recycled water services in accordance with established and anticipated standards and regulations; ii. iii. Projected demands; Availability of supply or capacity; iv. Develop a water rate component to purchase water rights, versus leasing, for current water production;v. Age and condition of the system and the need to fund long-term capital improvements/replacements; vi. Analysis of a Capital Improvement Program (CIP), identifying the scope and appropriate annual expenditures to develop levels of rate increases for implementing such projects based on at least three levels of expenditures. e. Recommendation of rates based on the current rate structures with an evaluation of the financial impact of various rate adjustment alternatives, such as phasing in rate increases over a number of years to the extent feasible; f. A recommended rate structure that is in compliance with the rate covenants of the District debt obligations and Proposition 218; g. Weigh the benefits of any proposed system improvements/replacements against the financial impacts on ratepayers and evaluate financing alternatives; h. Provide a comparison of current rates to seven (7) surrounding water purveyors. The District may ask the selected Consultant to recommend whether additional rate structure components should be surveyed. If additional rate survey information is needed, the District will work with the Consultant to obtain the necessary information; i. j. Consideration of funding past and future depreciation (replacement of facilities); Evaluate the type and amount of reserves appropriate to the District's operations taking into consideration reserves for cash flow, catastrophes, infrastructure replacement, potential contamination mitigation, pension, Other Post Employment Benefits (OPEB), and other appropriate purposes. Develop a phased implementation plan for achieving the recommended reserve levels to minimize the immediate impact on rates; k. Take into consideration the District's New World System (Financial System) billing capabilities; l. Utilize an easy-to-use electronic model in Microsoft Excel or Access, to be used by the District for future rate setting; m. A comparison of customer groups and cost of service with neighboring agencies of comparable size, type of treatment, and level of service. B. Assist with the training of internal City staff to update, maintain, and analyze the rate models. C. Assist the District with the approval process for such rates including presenting the rate recommendations at City Council meetings and providing expert witness services during the City Council meetings. Assist the District with the Proposition 218 process and develop public education materials as needed.