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

The City of Milpitas (City) is seeking to hire a consultant to perform a Proposition 218 cost of service and rate study to establish water and sewer rates for fiscal years 2028-29 through 2032-33. In addition, the City is seeking consultant support for an Annual Proposition 218 True-Up to be performed following the close of each fiscal year.

Download and review "Attachment C - Scope of Services" under the "Attachments" tab.

Major objectives of the rate studies

• Develop a five-year financial plan to sufficiently fund the City's operations and maintenance (O&M) expenses, debt service payments, and Capital Improvement Plan (CIP) while adequately funding reserves and meeting debt coverage requirements.
• Conduct a cost-of-service analysis that establishes a clear nexus between the cost to serve customers and the water and sewer rates charged to customers, per Proposition 218 requirements.
• Develop a five-year schedule of water and sewer rates that is fair, equitable, and compliant with Proposition 218.

The City is also seeking consultant support for an Annual Proposition 218 True-Up to be performed following the close of each fiscal year, as described in Section 11 of Attachment C – Scope of Services.

**Submission method:** The City requires that proposals be submitted electronically through its eProcurement website on OpenGov. Proposals must be submitted through OpenGov by the Submittal Deadline of **December 2, 2026, 12:00 pm Pacific Time**. All uploaded documents must be attached as separate Microsoft Word, Excel, or Adobe PDF files only. Submission of attachments containing embedded documents is prohibited.

Proposers must register on OpenGov to submit proposal responses. There is no cost to register for or participate in City of Milpitas solicitations.

**Cost Proposal:** All proposers must submit a comprehensive Cost Proposal by completing and uploading *Attachment D - Cost Proposal Form* in its native Excel format. DO NOT INCLUDE COMPENSATION INFORMATION ANYWHERE ELSE IN YOUR PROPOSAL.

**Required forms:** *Certification of Proposer*, *Non-Collusion Declaration*, *Nondiscriminatory Employment Certificate*, *Wage Theft Certification*, *Proposer's Statement Regarding Insurance Coverage*, *Worker's Compensation Insurance Certification*, and *RFP and/or Agreement Exceptions* must be printed out, completed, and uploaded back into OpenGov.

License and Bonding. Proposer shall be licensed and bonded in accordance with industry practices, laws, rules, and regulations governing the performance of services required in this RFP.

Any Addenda will be posted on OpenGov. It is the sole responsibility of each prospective Proposer to check OpenGov on a daily basis through the close of the solicitation for any applicable addenda or updates.