Request for Qualifications
Request for Qualifications
Comprehensive Rate and Cost of Service Studies for Water/Sewer Utility and Sanitation Collection
The City of Walterboro is requesting Statements of Qualifications (SOQs) from professional utility business planning firms to lead and facilitate the development of a comprehensive Cost of Service and Rate Study associated with the water, sewer and sanitation collection operations of the City.
City of Walterboro
The City provides water service to 5,613 customers, sewer service to 2,915 customers and sanitation collection service to 1,887 customers. The annual operating budget for the City is approximately $4 million for all three functions.
The City will engage a financial planning firm to review the current rate structure, the cost to provide water, sewer and sanitation collection services, the future capital improvement program, and then develop recommendations for a rate structure methodology and potential rate levels within those structures.
Initial Scope of Work
The initial scope of work envisioned by the City for the development generally described within the following elements:
Review Capital Improvement Plan – The City will provide the current Capital Improvement Plan to the selected firm to review and provide recommendations on financial planning and timing of the various projects identified to ensure that appropriate financial benchmarks (i.e debt ratio, etc) are maintained. It is expected that the recommendation of the various rate structures and potential rate levels will support the Capital Improvement Plan and annual operation needs.
Cost of Service – Conduct a cost of service (COS) study across current utility operations to determine the costs to provide and deliver water, sewer and sanitation services to the various classes of customers (residential, commercial, government units, industrial, etc.). Utilizing this information, either confirm that the existing rate structure is adequate to provide an appropriate allocation of cost or provide rate structure alternatives that reflect an appropriate allocation of cost based on industry practices. A pro/con evaluation should accompany the alternatives.
Utility Rate Plan – Utilizing the information from the above elements, develop potential rate levels within those structures that support an appropriate allocation of costs and support the capital and operational needs of the water, sewer and sanitation collection enterprises.
Summary Recommendation – Upon completion of the above elements, working in conjunction with City and other City Staff, develop a final recommendation for a proposed rate structure and rate levels within that structure. The recommendation will include a summary that discusses the analysis of the different alternatives and the benefits of the recommended structure and rates with respect to various financial benchmarks used in the industry.
Submittal of Qualifications
Interested firms shall submit five (5) copies of their Statement of Qualifications (SOQs). The SOQ will contain the following elements:
(1) The professional training, expertise and qualifications of the specific individuals to be assigned to the project for which the RFQ has been issued.
(2) Past performances of the firm submitting the RFQ.
(3) Location of the firm.
(4) Recent, current and projected workload of the firm.
(5) Creativity, insight and approach to the project.
(6) Related experience on similar projects.
(7) Other factors deemed relevant to the project.
(8) Willingness to meet time and budget requirements.
The City of Walterboro will receive SOQs from interested firms until 5:00 p.m. (EST) on October 26, 2018, at City Hall, located at 242 Hampton Street, PO Box 709, Walterboro, SC 29488. Envelopes and/or parcels containing the SOQ should be clearly labeled "City of Walterboro Rate Study - Statement of Qualifications."
SOQ Review & Evaluations
After receipt of the SOQs, a committee within the City will review and evaluate the content and qualifications presented in each package. Based on the review and evaluation of all SOQs received, the committee will recommend from one (1) firm to a maximum of five (5) firms to invite for an on-site interaction session with City personnel to discuss the information contained in the SOQ and other general and/or specific inquiries. Presentation or discussion of cost proposals will be excluded during this process. At the completion of this process, the City will then solicit a Request for Proposal from the firm(s) the City considers qualified to render the services described. Final selection of a firm will be based on the scope of work and the associated cost proposal that delivers best value to the City and the City in the execution of a Cost of Service Study and Rate Study.
SOQ Point of Contact
Questions regarding this RFQ shall be directed to:
City of Walterboro