Request for Proposals: Water Utility Cost-of-Service and Rate Design Study

The City of Abilene, Kansas, is soliciting proposals from qualified firms to conduct a comprehensive
cost-of-service and rate design study for the City’s water utility. This study will evaluate the current rate
structure, determine the true cost of service by customer class, and provide recommendations for a rate
structure that is equitable, transparent, and financially sustainable.

Sealed submissions may be delivered in person or mailed to Shayla Mohr, City Clerk, at 419 N. Broadway,
Abilene, KS, and must be received by the deadline above to be considered. Please mark the
exterior of the submission, “Water Utility Cost-of-Service Study Proposal.”

Firms must submit three (3) hard copies and one digital copy of their proposal. All communication regarding
this RFP shall be directed to the Primary Contact listed above.

Abilene, located in Dickinson County along I-70, is a community of approximately 6,500 residents. The city
operates its own water utility, providing service to residential and commercial customers, and sells finished
water to Rural Water District #2. To ensure the long-term financial health of the utility, the City seeks a
cost-of-service study and updated rate recommendations to align revenues with operating and capital needs
while ensuring fairness among customer classes.

The study should include, but not be limited to:

1. Review of Current Conditions

• Analyze current water rates, billing records, revenue sufficiency, financial reports, and utility expenditures.

2. Cost Allocation

• Functionalize and allocate costs across supply, treatment, distribution, administration, and capital.
• Assign costs equitably to customer classes (residential, commercial, Rural Water District #2).

3. Cost-of-Service Analysis

• Determine the cost responsibility of each class.
• Ensure compliance with accepted utility rate-setting standards.

4. Rate Design Alternatives

• Develop options including flat, volumetric, tiered, and blended rate structures.
• Consider conservation incentives, revenue stability, and equity.

5. Reports and Deliverables

• Draft and final reports with findings, methodology, and recommended rates.
• Presentation-ready graphics, charts, and summaries.
• Attendance at up to three (3) meetings with staff, commission, and stakeholders.

• Proposals must include the following:
• Background of the firm, including years of operation, services offered, and office locations.
• General project approach, methodology, proposed schedule, and major milestones.
• Relevant prior work with Kansas municipalities or comparable utilities, including at least three client references with contact information.
• Identification of key staff, their qualifications, and project roles.
• Estimated project timeframe with key deliverables.
• Lump sum fee including all consultant and sub-consultant services, expenses, graphics, and reproduction costs.

Proposals will be evaluated by City staff. Firms may be invited for interviews. Evaluation will be based on:

• Demonstrated qualifications and experience in comparable studies.
• Proposed project approach and methodology.
• Past performance on similar contracts, including cost control and schedule adherence.
• Capacity to meet deadlines and allocate sufficient personnel.
• Compatibility with City budget and financial requirements.

The City may negotiate final scope and fees with the selected firm.

• RFP Release: September 9, 2025
• Deadline for Questions: September 19, 2025
• Proposal Submission Deadline: September 30, 2025
• Initial Review: October 1, 2025
• Interviews (if necessary): October 7, 2025
• Selection and Recommendation to Commission: October 13, 2025
• Commission Approval: October 27, 2025
• Study Kick-off: October 28, 2025
• Draft Report: December 1, 2025
• Final Report: December 15, 2025

• Draft and final reports in MS Word and PDF.
• Excel-based cost-of-service and rate model.
• Presentation graphics for staff, commission, and public meetings.
• Data and maps in formats acceptable for City use and publication.

1. The City of Abilene reserves the right to reject any or all proposals.
2. All questions must be submitted in writing by the deadline listed. Responses will be distributed to all respondents.
3. The city is not obligated to accept the lowest-cost proposal; selection will be based on qualifications and best value.
4. All documents produced under this contract become the property of the City of Abilene.
5. Costs incurred in proposal preparation are the sole responsibility of the respondent.