REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with Black & Veatch Management Consulting, LLC for Consulting Services for the Setting of Water, Sewer, and Recycled Water Rates Charged to Santa Clara Customers
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Rates charged to Santa Clara residents and businesses for water, sewer, and recycled water services are approved by the City Council on an annual basis. Every April, the Water & Sewer Utilities Department (Department) recommends to the City Council a suitable rate schedule that produces revenues adequate to provide high quality services, support capital improvements, and maintain adequate reserve balances.
The Department utilizes a consulting firm to prepare a rate study to assure proposed rates are fair and equitable and meet regulatory requirements. The firm is tasked with examining historical and current financial reports, forecasting cost items over the study period, reviewing capital improvement programs, performing cost of service analysis, and developing cash flow analysis.
The agreement with Black & Veatch Management Consulting, LLC that covered the last four years of rate studies termed out in September 2021.
DISCUSSION
Pursuant to City Code Section 2.105.330, a formal request for Statement of Qualifications (SOQ) was conducted for this procurement, with the award recommendation based on "best value." The factors considered in the award were experience of firm and project team, technical approach, and cost.
In August 2021, the City released a SOQ for the Utility Rate Study. The SOQ was published on Periscope S2G (formerly BidSync), the City's e-procurement system. A total of 47 companies viewed the SOQ, and four proposals were received from the following firms:
* Black & Veatch Management Consulting, LLC
* HF&H Consultants, LLC
* NewGen Strategies and Solutions, LLC
* Raftelis Financial Consultants, Inc.
The proposals w...
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