The City of Fraser seeks the services of a professional firm with experience and knowledge relating to assessing revenue requirements to comprehensively determine cost of service and rates for water service and sanitary sewage disposal service. The City is requesting that firms express their interest in providing the services herein by submitting a detailed proposal valid for at least 90 days. Firms shall submit proposals describing the ability to provide the following:
- Review the current rate structure and rates charged for water service and sewage disposal service for sufficiency.
- Determine revenue requirements and cost of service allocation.
- Review current long- and short-term debt obligations of the water and sewer funds.
- Review annual operation and maintenance expenses of the water and sewer funds to ensure all operational expenses are being factored into the calculated rates.
- Review and evaluate the cash flow to ensure it is adequate to pay for the Capital Improvement Program.
- Develop an equitable and suitable rate schedule considering those factors listed above, including appropriate cash balances and in compliance with EGLE recommendations and the 3-part test established by the Bolt v Lansing decision.
- Prepare a summary, recommendation, and presentation to City Council upon approval of the Administration.
Background:
The City of Fraser operates both water distribution and wastewater collection systems for Residential, Commercial, and Industrial customers. There are approximately 5,300 active utility accounts (4,304 residential and 1,050 commercial).
Project Description: The purpose of this project is to conduct a comprehensive water and sewer rate study. It is expected that the successful firm will draw conclusions and make recommendations to the City of Fraser to develop a secure financial plan for the future of the water and sewer funds and the activities that those funds support.
Preliminary Scope of Work: After receiving written approval by the City to proceed, the CONSULTANT will provide a plan to prioritize the work, perform the work, and record the work performed. The following tasks shall be included as a minimum:
- Meet with appropriate City of Fraser staff including the Department of Public Works (DPW), Finance Department, City Manager’s Office, and others to review records and collect data as necessary.
- Provide all materials, labor, supplies, insurance, and other accessories and services to complete the work.
- Perform the work to assure conformance with all applicable Federal, State and Local accounting rules and rate recommendations per EGLE and Bolt v Lansing decision.
- Document, on an as-needed basis, the actual work performed and provide a status report to the City of Fraser DPW. Copies of individual status reports shall be provided to the appropriate managers in other divisions, the Finance Department, City Manager’s Office, etc.
PROPOSAL PREPARATION AND SUBMISSION:
Prepare and submit ten (10) copies of your detailed proposal, including fee structure, signed by an officer of your firm, by 4:00 pm on Friday, December 29th, 2023. All proposals shall be sealed, and the envelope clearly labeled: Utility Rate Study RFP with your company’s name in the return address of the envelope.
All questions or concerns regarding this RFP should be submitted in writing or via e-mail no later than December 15, 2023 to Cindi Greenia, City Clerk at City of Fraser, 30000 Garfield Rd, Fraser, MI 48026 or cgreenia@micityoffraser.com
All proposals shall be addressed to:
Cindi Greenia, City Clerk
City of Fraser
30000 Garfield Rd.
Fraser, MI 48026
The Detailed Proposal should include, in the following order:
- A summary, not to exceed three pages in length, highlights the important elements of your proposal.
- A work plan which describes your structured approach to accomplishing the required tasks in conformance with all applicable Federal, State, and City rules, regulations, ordinances, and laws.
- A list of additional services which you feel are necessary or desirable for the City of Fraser’s Department of Public Works to achieve its goals for delivery of quality service to its customers; any such additional services shall be clearly identified as additional to not interfere with evaluation or understanding of the scope of the proposal.
- A complete list of deliverables will be provided during the contract.
- A proposed work schedule for complying with project requirements, which includes all work hours by classification and by task.
- A description of the organization of the project team, including sub-contractor participation. It shall include a designated Project Manager who shall direct and coordinate the services as described herein and provide the expertise necessary to accomplish the project requirements. A resume emphasizing the completed projects similar in nature and scope to the project described herein and all projects currently involved in shall be submitted for the Project Manager of this project.
- A statement of the proposed fee based upon time and expense charged to the project including a “not to exceed” amount for all phases of the project. Indicate expense reimbursement and hourly labor rates by classification and overhead or multiplier.
- A list of at least five (5) references for which similar work has been performed, especially those for whom compliance with cost-of-service standards was required.
- Any other information which you believe would be helpful to the City of Fraser in evaluating your firm’s qualifications and experience.
- A proposed schedule of submittals for review.
SELECTION CRITERIA:
A sub-committee of the City Council, along with the City Manager, DPW Superintendent, and Finance Director will review all detailed proposals and may conduct interviews with each of the three (3) top-rated firms if warranted. Final selection will be based on:
- The firm’s ability to provide the required services.
- The qualifications and performance history submitted by the firm in the Detailed Proposal as it relates to innovative methods of controlling costs, quality of work and other information relevant to this project, including verification of references.
- The credentials of key personnel in managing a project involving utility rate studies.
- The firm’s understanding of the scope of services as demonstrated in the Detailed Proposal.
- The present workload of the firm and the availability of staff for this project.
- The appropriateness of the firm’s Fee Proposal to the level of services to be provided.
- The firm’s ability to follow the directions in the request for proposal.
- Any other relevant information that the City of Fraser staff may legally consider in making its decision.
The City of Fraser reserves the right to reject all bids. Further, the City is not bound to accept the lowest bid but rather, the best bid submitted for the work to be performed and the qualifications of the bidder.
Utility Rate Study RFP