Water and Wastewater (Sewer) Rate Study and Annual Proposition 218 True-Up Analysis Service

The City of Milpitas is soliciting a qualified consulting firm to conduct a comprehensive Proposition 218 cost‑of‑service and rate study for its water and wastewater (sewer) systems, establishing rates for fiscal years 2028‑29 through 2032‑33, and to provide an annual “True‑Up” analysis after each fiscal year to verify compliance with Proposition 218. The effort includes data collection, cost allocation, financial modeling, stakeholder outreach, and preparation of rate schedules and supporting documentation. The contract will span five years, with yearly deliverables for the True‑Up, and requires the consultant to be licensed, bonded, and experienced with California municipal utility rate studies. • Develop a five‑year financial plan covering O&M, debt service, capital improvements, and reserves. • Perform cost‑of‑service analysis linking customer usage to water and sewer costs. • Produce annual True‑Up reports to reconcile actual revenues and expenditures. • Conduct community outreach and stakeholder engagement as required. • Deliver final rate schedules and technical reports for City Council approval.