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

SCOPE OF WORK The City of Waterford understands this RFP may be inadequate to fully describe the work envisioned. The information contained in this RFP is City of Waterford's best understanding of the current needs and how to address them, the City of Waterford will be relying on the consultant firm to provide modifications to the scope of work described herein based on their professional expertise in this subject area. If the consultant believes there is a better way to achieve City of Waterford's goals, then that should be reflected in the proposal. Consultants should include additional tasks they deem appropriate, written reasons why a task should be included, and an estimate of the fee required to complete the task. The Scope of Services involves all necessary analysis and documentation needed to perform the water rate study. In general, the scope of work should include the following: 1. Review Background Information: Review key information including but not limited to: o Regulatory and contractual requirements. o Operational and capital improvement needs. o Historical revenues, usage, expenses, reserve policies, billing and collection procedures, rates and charges, and customer information. o Water Master Plans. o Projected revenues, usage, expenses, reserve policies, billing and collection procedures, rates and charges, and customer information. o Other pertinent data, as necessary. 2. Prepare a rate model which projects expenses, revenue requirements, and the resulting need for changes in utility rates for a period of at least 10 years. A rate schedule shall be developed that includes planned adjustments for the five-year period beginning January 1, 2026. 3. The rate model should be prepared and provided to the City in Excel spreadsheet format. The model's construction shall be documented in a manner that allows the City to understand the formulas which are utilized, and how variables affect rate calculations. The City should be able to use the model in the future to evaluate actual performance against projections and to adjust as necessary. The model will be the property of the City and may be used by the City for any purpose. 4. Rate calculations should consider the impacts of: o Additional staffing is needed to better operate the utility. 8 o Necessary improvements to the utility system as described in the Water Master Plan. o Increased costs due to new water regulations. o Decreased water usage due to conservation, including conservation caused by higher utility rates. 5. Propose a methodology for annual inflationary adjustments in compliance with Proposition 218. 6. Assess the impact of drought or other potential water shortage factors on operating revenues and ensure that the rates will generate sufficient revenue to operate and maintain the systems during periods when less water is being consumed. 7. Perform an analysis of the various reserves and fund balances and make recommendations for appropriate levels. 8. Identify various scenarios for debt repayment. The alternatives should consider the utility's fiscal health as well as ratepayer impacts. 9. Attend meetings and conference calls with staff as needed. (video and phone meetings are acceptable for staff meetings) 10. Present results to City Council in person. Assume up to three Council meetings. The intent is that Council can provide feedback on the alternatives being considered before a final recommendation is made. The council meets on the 1st and 3rd Thursday of every month at 6:30 pm. 11. The consultant shall prepare a preliminary report for staff, an administrative draft for the final Council meeting (which includes Council and staff comments up to that point), and a final report (incorporating any final Council and staff changes). The reports should include the following: o A brief physical description of each utility system. o Service area description, including population characteristics. o Overview of financial operations for the last 5 years. o A description of the necessary capital improvement program over time (10-years), including potential State and Federal regulatory requirements. o The comprehensive revenue & expense model described above. o Local rate comparisons and statewide comparisons as appropriate. 12. The consultant will provide guidance and advice to City staff to ensure compliance with the Proposition 218 process as it applies to water services. The consultant will include the preparation and completion of Proposition 218 Notification as a service to the City. It is the intent of the City to adopt the water rates proposed at the conclusion of the Proposition 218 Public Hearing. The consultant shall present at that hearing, which will most likely take place at a regularly scheduled Council meeting. INQUIRIES/QUESTIONS Questions pertaining to the RFP should be directed to Tina Envia, Finance Manager by phone (209)874-2328 ext. 104 or email, finance@cityofwaterford.org .