CITY OF LAKEPORT, CALIFORNIA

REQUEST FOR PROPOSALS

WATER & SEWER RATE STUDY

INTRODUCTION:

The City of Lakeport is requesting proposals from qualified financial consultants to conduct a comprehensive water and sewer rate analysis. The intent of the study is to independently assess and evaluate the City of Lakeport’s existing water and sewer rates and provide recommendations.

BACKGROUND:

The City of Lakeport is a general law city with a population of approximately 5,100. The City of Lakeport has approximately 50 employees on a permanent full time basis. The City was incorporated in 1888. The City Council is comprised of five elected citizens with the City Manager as the administrative and executive head of the City. The members of the City Council also sit as the Board of Directors for the City of Lakeport Municipal Sewer District (CLMSD).

The Utilities Department for the City of Lakeport manages the functions needed to provide water and sewer services to the citizens of the city. The Department receives revenue for these serves through water and sewer rates that are billed monthly. A rate analysis of the water enterprise, and a portion of the sewer enterprise, was last completed in 2003. A rate analysis of the sewer district which encompasses approximately 2/3rds of the City was completed in 2007.

Funding for this project is approved in the current 2010/2011 budget.

SCOPE OF WORK

  1. OBJECTIVE:

The objective of the study is to adequately fund water and sewer operations, capital costs, and bonded debt while minimizing rates to the greatest degree possible. Water and sewer rate proposals need to be:

  • Fair and objective and ensure that water and sewer service is provided on a self-supporting basis.
  • Fund capital projects as identified in the 2008 water and sewer system master plan.
  • Encourage water conservation.
  • Recommend a proper industry index for inflation adjustments.
  • Recommend a prudent reserve policy for operations, capital replacement and emergencies.
  1. STUDY REQUIREMENTS:

The study is to be performed in conformance with the following policy directions:

  1. The recommended rate structures shall be based on cost of service and shall be sufficient to meet the revenue requirements of the City of Lakeport.
  2. The study shall recommend rate structures that consider and make provisions for the following factors:
  3. Current and future cost of providing utility service in accordance with established and anticipated standards and regulations.
  4. Age and condition of systems.
  5. Funding requirements for all current long-term liabilities and debt obligations.
  6. Impact of current and future environmental regulations.
  7. Other impacts as identified.
  8. The recommended rate structures shall provide direct identification of revenues appropriate to fund operating activities and infrastructure.
  9. The recommended rate structures shall be consistent with industry practice for utility rate making in California.
  10. The benefits of any proposed modifications shall be weighed against the financial impacts on ratepayers.
  11. The recommended rate structure shall result in no decrease in stability of the revenue stream to the Water and Sewer funds, as compared to the current structure. Consideration shall be given to funding past and future depreciation (replacement of capital assets).
  12. The recommended rate structure shall consider the type and amount of reserves appropriate to the City’s water and sewer operations taking into consideration reserves for cash flow, catastrophes, infrastructure replacement and other appropriate purposes.
  13. The recommended rate structure shall be easy to administer and understand.
  14. Any proposed rate structure must take into consideration, the City of Lakeport billing system capabilities.
  15. The rate study shall include an easy to use electronic model, either in Microsoft Excel or Access to be used by the City of Lakeport for future rate setting.
  1. STUDY ELEMENTS:

In making its rate structure recommendations, the final report shall explicity include the following elements and analysis:

  1. Current Rate Structure: Assess the current rate structure’s performance as a baseline for comparing recommended changes.
  2. Equity: Assess the equity of recommended water and sewer rates for all types of property ownership.
  3. Conservation Impacts: Assess the interaction between the water conservation elements of the recommended rate structure and their impacts on the ability to fund water operations as well as their impact on the economic well-being of the community.
  4. Environmental Regulations: The study shall include an assessment of the revenue stream generated by the recommended rate structure and its ability to continue to fully fund and sewer system costs under the impacts of future environmental regulations and standards.
  5. Other Service Charges: Assess existing customer service fee structure and identify other potential areas for service and system charges (shut-down activities, back-flow devices, plan reviews, water service shut-offs, etc.) and recommend changes, if appropriate. Assessment is to note any resulting increase in liability the City may incure as result of assessing the fees.
  6. Annual Operating Fund Balance Targets: Recommend reserve levels for operating, capital replacement, bond requirements, as well as cash flow and unforeseen events.
  7. Comprehensive Summary of Recommended Rate Structure(s): Assess performance of each recommended rate structure and provide recommendation on preferred rate structure.
  8. Electronic Rate Model: Provide an easy to use electronic rate model for the City of Lakeport to use in future rate setting.
  1. SERVICES TO BE PROVIDE BY CONSULTANT
  1. Conduct a detailed review of the existing water rates and status of the Water and Sewer Funds, and develop a general familiarity with the City of Lakeport billing system.
  2. Meet or confer with staff as needed.
  3. Attend a minimum of two evening meeting of the City Council/City of Lakeport Municipal Sewer District (CLMSD) to present draft rate study, and a hearing where the final plan and rates are considered for adoption.
  4. Conduct analyses as required to address the scope of work.
  5. Preliminary Report:
  6. Provide an executive summary of draft report.
  7. Prepare a preliminary study report and tentative rate structure.
  8. Submit 15 copies.
  9. Present preliminary report and tentative rate structure to the City Council/CLMSD Board at a Council Workshop.
  10. Draft Final Report
  11. Provide an executive summary of report.
  12. Incorporate changes pursuant to comments received at the City Council/CLMSD Board Workshop.
  13. Submit 15 copies.
  14. Present preliminary report and tentative rate structure to the City Council/CLMSD Board at a formal public hearing.
  15. Final Report
  16. Incorporate changes pursuant to comments received at the City Council/CLMSD Board from public hearing.
  17. Submit 15 copies, plus one reproducible copy.
  18. Provide a disk with report in MS Word format, with spreadsheets in Excel format.
  19. Supply a time schedule for developing the preliminary and final reports.
  20. Provide an easy to use electronic rate model in MS Excel or Access for the City of Lakeport to use in future rate setting.
  1. SERVICES TO BE PROVIDED BY THE CITY OF LAKEPORT

The services to be provided by the City of Lakeport include, but are not limited to the following:

  1. Furnish all reasonably available records and information, including financial reports, budgets, consumption data, meter sizes and customer classes for the City of Lakeport.
  2. Provide a loaner copy of the Water and Sewer System’s Master Plan prepared in 2008.
  3. Provide all relevant information the City of Lakeport has pertaining to the City and its operations including operating and capital budgets, and current Resolutions and related documents.
  4. Provide information on recent Capital Improvement Project planning.
  5. Provide staff support and assistance as required and agreed to in advance of the study.

PROPOSAL SUBMITTAL

The proposal should include the following information:

1.Cover letter summarizing the proposal.

2.Scope of work (a description of the work program including a description of deliverables and activities).

3.Description of the Project Team. The names, title and qualifications (resume) of the proposed project manager and support staff and subcontractors who will be conducting the work on this assignment, including their experience and projects in which they had “hands on” responsibility, and length of time with the firm. The project manager will be expected to be fully involved and conversant in the details of the project on a day-to-day basis.

Include a description of the organizational structure of staff members and sub-consultants, if any.

4.Description of recent projects of a similar nature including at least 3 client references with names and telephone numbers, contact persons.

5.Proposed project schedule. The City of Lakeport would like the work to begin no later than April 11, 2011.

6.Project budget. Cost Allocation Plan – a description of the project budget itemized according to individual tasks. Said budget to be submitted in a “sealed” envelope. The consultant shall present a specific “not to exceed” fixed fee including associated fees (i.e. printing costs, attendance at meetings, travel). A requested payment schedule should accompany the work schedule. Each phase of the work should have an itemized budget including labor costs and expenses for each piece of work. The proposal should include staff hourly rates.

SUMMARY OF KEY DATES;

Release of RFPWednesday, March 9, 2011

Deadline for submitting proposals:4:00PM, Friday, March 25, 2011

City review of proposalsMarch 28, 2011

Utilities Director recommends to City CouncilMeeting of April5, 2011

Work beginsWeek of April11, 2011

INSURANCE REQUIREMENTS

The consultant selected to perform the work shall furnish insurance as outlined on the attached Exhibit “B”. Please refer to the attached insurance requirements.

INDEMNIFICATION

Consultant shall indemnify and defend the City of Lakeport/CLMSD Board and its officers, employees, and agents against and hold them harmless from any and all claims, losses, damages, and liability for damages, including attorney’s fees and other costs of defense incurred by City, whether for damage to or loss of property, or injury to or death of person, including properties of City and injury to or death of City officials, employees or agents, arising out of, or alleged to arise out of, or connection with Consultant’s operations hereunder or the performance of the work described herein, unless such damage, loss, injury or death is caused solely for the negligence of City.

CONSULTANT AGREEMENT

The City has a standard consultant agreement with certain conditions required of prospective consultants. In particular, the City requires $2,000,000.00 of public liability insurance, and $1,000,000.00 professional liability insurance in addition to the standard coverage’s of worker’s compensation and automobile insurance. Furthermore, other statutory requirements will be incorporated. These are outlined as follows:

  • SUBCONTRACTING

Pursuant to the provisions in Section 1777.1 of the Labor Code, the Labor Commissioner publishes and distributes a list of contractors ineligible to perform work as a subcontractor on a public works project. This list of debarred contractors is available from the Department of Industrial Relations web site at

  • PROMPT PROGRESS PAYMENT TO SUBCONTRACTORS

Attention is directed to the provisions in Sections 10262 and 10262.5 of the Public Contract Code and Section 7108.5 of the Business and Professions Code concerning prompt payment to subcontractors.

  • PROMPT PAYMENT OF WITHHELD FUNDS TO SUBCONTRACTORS

The Contractor shall return all moneys withheld in retention from the subcontractor within 30 days after receiving payment for work satisfactorily completed, even if the other contract work is not completed and has not been accepted. This requirement shall not be construed to limit or impair any contractual, administrative, or judicial remedies otherwise available to the Contractor or subcontractor in the event of a dispute involving late payment or nonpayment by the Contractor or deficient subcontract performance or noncompliance by a subcontractor.

PRE-PROPOSAL CONFERENCE

A pre-proposal conference will not be held for this project. Consultants with questions regarding specific details of the project should submit them in writing to the City Utilities Director no later than 3 business days prior to the due date of the proposals to allow adequate time for a written response to be generated and distributed to all proposers.

ADMINISTRATIVE INFORMATION

The City reserves the right to reject any or all proposals. This Request for Proposals does not obligate the City to award a contract nor does it commit the City to pay any costs associated with the preparation and submittal of a proposal. Requests for additional information required by a firm wishing to make a proposal to the City relative to this RFP shall be made in writing prior to the pre-proposal conference or in person at the pre-proposal conference. All proposals and accompanying materials shall become the property of the City of Lakeport upon submittal.

PROPOSAL SUBMITTAL REQUIREMENTS

Proposals shall be received by the City no later than 4:00 p.m. on March 25, 2011. Three copies of the proposal shall be submitted to:

City of Lakeport

Attn: Janel Chapman, City Clerk

225 Park Street

Lakeport, CA. 95453

A cost proposal for the consultant’s services shall be provided in a separate sealed envelope with the consultant’s name on the outside; only one copy is required. The cost proposal should use the same format the consultant proposes to use for billing invoices.

EVALUATION OF PROPOSALS TO ARRIVE AT A SELECTION

  1. General

The City of Lakeport Utilities Department complies with the City’s requirements concerning consultant selection as outlined in the City’s Consultant Selection Board Policy. Department staff will follow this set procedure in determining the best qualified consultant to perform the work solicited.

The items listed below are assigned relative weights which will be used to evaluate the written proposals and to arrive at a selection. At the option of the City, interviews may be used as a part of the selection process. The preliminary selection will be made by a Consultant Selection Committee.

The City will enter into negotiations with the firm receiving the highest rating following the selection. If such negotiations are not successful, negotiations will then be entered into with the firm receiving the next highest rating.

  1. Criteria for the Evaluation of Written Proposals

The following evaluation criteria and weight of importance will be used in evaluating and selecting a consultant:

Percentage

Evaluation CriteriaPoints

1.Candidate’s specialized experience and technical competence

as applicable to the services required. Resumes must be

furnished for the key team members...... 30%

2.Candidate’s past record of performance, including control of

costs, quality of work, completion in a timely manner ...... 20%

3.Candidate’s capacity to perform the work in a timely fashion.

A proposed work plan should be included ...... 30%

4.Candidate’s familiarity with the type of problems applicable to

the project ...... 20%

5.Candidate’s proposed fees ...... 0%

EXHIBITS

A.Insurance Requirements

B.Sample Professional Services Agreement

DISCRETION AND LIABILITY WAIVER

The City reserves the right to reject all proposals, or request and obtain, from one or more of the consulting firms submitting proposals, supplementary information as may be necessary for City staff to analyze the proposals pursuant to the consultant selection criteria contained herein.

The City may require consultants to participate in additional rounds of more refined submittals before the ultimate selections of a consulting team are made. These rounds could encompass revisions of the submittal criteria in response to the nature and scope of the initial proposals.

The City reserves the right to choose any number of qualified finalists.

The selected consultant will be required to execute the City’s standard professional services contract, which is included herein.

CONTACTS:

All questions regarding this project should be directed in writing to:

City of Lakeport

Attn: Mark Brannigan, Utilities Director

591 Martin Street

Lakeport, CA. 95453

Phone: (707) 263-3578 Ext. 20

Fax: (707) 263-1514

Email:

Exhibit A

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