Consultant Services for a Water Utility and Wastewater Utility Rate Study

Background
The City of Redlands, a California general law municipality located approximately 60 miles east of Los Angeles, is seeking proposals for a Water Utility and Wastewater Utility Cost of Service (COS) Study. The Municipal Utilities and Engineering Department (MUED) oversees the Water Utility Division and Wastewater Utility Division, which serve approximately 83,000 residents across multiple cities. The goal of this contract is to establish a COS methodology that complies with legal requirements, including Proposition 218, and to update utility rates and charges by July 2026.

Work Details
The consultant will conduct a comprehensive COS Study for both the Water Utility and Wastewater Utility. Key tasks include:

1. Review existing COS studies and recommend changes based on current legal requirements and industry practices.
2. Research comparable jurisdictions' water and wastewater rates to inform Redlands' rate structure.
3. Develop a public participation plan to enhance customer understanding of the rate development process, including participation in up to ten public meetings.
4. Create cash flow projections for both utilities based on Redlands' budget and financial documents.
5. Perform a detailed cost of service analysis for both utilities, ensuring compliance with legal standards.
6. Develop rate schedules that recover costs proportionally across customer classes while considering financial impacts from surface water supply shortages.
7. Create Excel-based financial models for ongoing rate revenue calculations that are user-friendly for city staff.
8. Prepare a final report summarizing the rate development process to support the adoption of new rates starting FY 26/27.

Period of Performance
The contract will be awarded for an initial term of twelve (12) months, with potential extensions available at the City's discretion.

Place of Performance
The services will be performed primarily at the City of Redlands Municipal Utilities and Engineering Department located at 35 Cajon Street, Suite 15A, Redlands, CA.

Bidder Requirements
Consultants must have at least three years of experience in providing utility rate service cost studies and financial modeling specifically for municipal utility providers or similar entities. They must possess all necessary permits, licenses, and professional credentials to perform the required services.