RFP for Water and Wastewater Rate Study Update

Background
The City of Arroyo Grande, California, is seeking proposals for a Water and Wastewater Rate Study Update. Established in 1911, the City operates its water and sewer services as enterprise funds. The water utility sources its supply from wells and surface water, serving a population of approximately 18,000 across a 5.45 square mile area.

The goal of this contract is to conduct a comprehensive analysis to update the rates for both utilities based on equitable cost of service principles.

Work Details
The selected consultant will conduct a detailed analysis including:
1. Review of current water and wastewater fees and rates, including master planning reports for necessary improvements.
2. Projection of revenue requirements over a five-year study period based on existing rates, customer growth projections, and operational expenses.
3. Allocation of costs to various customer classifications reflecting cost-causative concepts.
4. Analysis and update of charges related to the Lopez Project for water supply.
5. Conducting meetings with City staff to discuss findings and recommendations.
6. Deliverables include draft and final reports on the rate study update, presentation materials for City Council meetings, and strategies to minimize conservation impacts on revenue.

Period of Performance
The contract period will commence upon award by the City Council on January 14, 2025, with completion expected by July 22, 2025.

Place of Performance
The work will be performed in Arroyo Grande, California.