REQUEST FOR PROPOSALS (RFP) Utility Rate Study

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LEGAL NOTICE / RFP ADVERTISEMENT

The City of Portland, Tennessee is requesting Proposals from qualified firms to provide services for a Utility Rate Study.

Proposals will be received until:

3:00 PM (Central Time) on Tuesday, May 12, 2026

Submissions received after this time will not be considered.

RFPs shall be submitted both electronically and in hard copy to:

City of Portland

Attn: Rachel Slusser, Finance Director

100 S. Russell Street

Portland, TN 37148

Email: For security reasons, you must enable JavaScript to view this E-mail address.

1. Introduction

The City of Portland, Tennessee (the “City”) is soliciting proposals from qualified firms to conduct a comprehensive Utility Rate Study for the City’s Wastewater, Natural Gas, and Water utility services. The purpose of this study is to evaluate existing rate structures, potential projects, future growth, and to develop sustainable, equitable, and financially sound rate/fee scenarios that support current and future operational, capital, and debt service needs.

1. Project Overview

The City of Portland operates municipal utility systems that require periodic review of rates to ensure financial stability, regulatory compliance, and affordability for customers. The City anticipates current and potential future capital investments that may require additional debt issuance. Accordingly, the City seeks a rate/fee study that evaluates multiple scenarios based on varying levels of capital improvements and projected debt service with a possible phased in approach.

1. Scope of Work

The selected consultant will be expected to perform, at a minimum, the following tasks:

• Review historical financial statements, budgets, and operational data for both the wastewater, natural gas, and water utilities.
• Evaluate existing rate structures, customer classes, and consumption patterns.
• Analyze current and projected operating costs, capital improvement plans, consent orders, and debt service obligations.
• Develop multiple individual rate scenarios for wastewater, natural gas, and water utilities based on varying capital improvements, projected debt service levels, and consent order requirements.
• Prepare a multi-year, phased-in rate implementation plan designed to minimize consumer impact while ensuring financial sustainability.
• Assess legal, regulatory, and industry best practices applicable to municipal utility rate setting.
• Offer other alternatives to calculating and charging rates/fees not currently used by the City, along with methodology of calculating usage such as Equivalent Residential Units for basis of increased cost to commercial/industrial users.
• Review fee Ordinance #25-24 and provide updated capacity and improvement fees for new connections.
• Provide clear recommendations supported by financial modeling and analysis.
• Conduct at least two (2) in-person meetings with City staff, along with two (2) other virtual or in-person meetings with City staff for data gathering, project updates, and finalizing study.
• Present findings to City staff and elected officials, including at least one formal in-person presentation to the City’s governing body.
• Present a separate cost proposal for each utility rate study.
• City Council expects January 1, 2027 for implementation of any new rates/fees, and will be the deciding factor on which, if any, studies move forward.

1. Submission Requirements

Companies shall submit one (1) electronic copy and eight (8) hard copies of the proposals. Proposals should include a cover page, an index, and the following information in the order listed:

1. Firm Qualifications and Experience
   • Description of the firm and key personnel.
   • Relevant experience with municipal utility rate studies.
   • Examples of similar projects completed within the last five (5) years.
2. Project Approach and Methodology
   • Project comprehension and understanding of desired results.
   • Detailed description of the proposed approach and analytical methods.
   • Description of data requirements and coordination needed with City staff.
3. Project Timeline and Deliverables
   • Proposed project schedule, including major milestones for the process.
   • Detail anticipated deliverables from project analysis.
   • List possible complications that could delay the timeline.
4. Cost Proposal and Value
   • Detailed cost proposal including a quote expiration date for each utility.
   • Breakdown of costs by task and by utility.
   • Detail how the work of your firm adds value to the City.
5. Past Performance and References
   • List at least three (3) professional references for similar work.
   • List the last three (3) studies that were fully implemented as presented.
   • List any complications with past studies.

1. Evaluation & Scoring Criteria

Proposals will be evaluated using the following weighted criteria:

1. Selection Process

The City will rank firms based on evaluation criteria. Subject to Council approval, the highest-ranked firm will be invited to negotiate a contract for services; and if negotiations are unsuccessful, the City may proceed to the next ranked firm.

1. City Rights

The City of Portland reserves the right to reject any or all submissions, waive informalities, and select the firm deemed to be in the best interest of the City. Each company assumes all cost and responsibility for their proposal submission, and each company guarantees the accuracy of their submission.

Questions, Clarifications, and Addenda

Questions regarding this RFP shall be submitted in writing via email to the City contact listed herein no later than: 3:00 PM (Central Time) on April 28, 2026

• All questions must be submitted via email by the stated deadline to the project contact. Verbal inquiries will not be accepted.
• Responses to questions and any required addenda will be issued in writing. It shall be the responsibility of each firm to monitor for issued addenda and to acknowledge receipt of all addenda in their Proposals.
• No interpretation, clarification, or change to the RFP shall be binding unless issued by the City in the form of a written addendum.
• In the event of inclement weather, or other unforeseen circumstances that prematurely close normal business operations of the City, notification of a new submission deadline will be posted when conditions allow.

City Hall

100 South Russell

Portland, Tennessee 37148

615-325-6776

www.cityofportlandtn.gov