CMSD Wastewater Rate Study Addendum No. 2

REQUEST FOR PROPOSALS
By
Costa Mesa Sanitary District
For
Wastewater Rate Study
Release Date: August 12, 2026
Proposals Due: September 28, 2026
Deliver to:
Costa Mesa Sanitary District
290 Paularino Avenue
Costa Mesa, CA 92626
(949) 645-8400

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INTRODUCTION
The Costa Mesa Sanitary District (hereinafter referred to as "The District") is soliciting proposals from
qualified professional consulting firms to prepare a wastewater rate study that describes the
justification and calculations for annual wastewater charges. This Request for Proposal (RFP) outlines
the Scope of Work (SOW), project requirements, and conditions for award.
BACKGROUND
The Costa Mesa Sanitary District (CMSD) is an independent special district that was formed in 1944
under the Sanitary District Act of 1923. It is governed by an elected five-member Board of Directors
that appoints a general manager to supervise the day-to-day operations of the organization. The
District's boundaries encompass all of the City of Costa Mesa, portions of Newport Beach, and
unincorporated Orange County; serving a population of approximately 116,700 and serving close to
4,000 businesses.
Wastewater is conveyed to a treatment plant located in the City of Fountain Valley (owned and
operated by the Orange County Sanitation District) via 224 miles of collection system and 20 lift
stations. CMSD total daily dry weather flow is typically between 8 and 10 million gallons per day,
depending on annual rainfall.
The current wastewater rate structure consists of flat rates for residential customers (single
family and multi-family dwellings) and rates on an annual charge per 1,000 square foot basis for
commercial and industrial customers. Below are the current annual wastewater rates for CMSD.
Sewer Rate Annual Rate
Single family residence $118.43
Multi-family residence $89.89
Commercial - Ave Strength $51.63
Commercial - High Strength $57.49
Industrial $132.96
Mobile Home $83.48
ADU $43.54
With this rate study, CMSD would like to review current rates and to develop rates that will fully
fund capital improvement projects and maintenance activities over the next five-year rate period.
CMSD's wastewater fund balance, which pays for capital projects, is over $7 million. Wastewater
rates are collected on the property tax bill as special assessments.
The last wastewater rate study was conducted in 2021/22 fiscal year. The final report can be
found on the District's website.

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The rates must comply with Proposition 13 (Cal. Constit. Art. XIIID) and must meet the criteria of
that law and other laws that apply to the setting of wastewater rates. The rates will also be used
to fund the capacity assurance element of the District's Sewer System Management Plan.

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SCOPE OF SERVICES
1. Evaluate current rate structure and assess appropriateness: Review potential alternatives
including commodity-based rate or other mechanisms for customers that encourage
water conservation.
2. Identify any start up, on-going, administrative fees, and/or other sewer-related District
costs required for implementing an updated 5-year rate structure.
3. Recommend rates over the next five year to 10-year period to fund capital improvement
program and projects described in the District Master Plan (dated 2022), as well as on-
going maintenance activities, staffing, vehicle needs, among other agency costs. Based on
providing about 1 to 1.5% sewer system renewals each year, it is estimated that the
District requires about $3.0 to $3.5 Mill for the annual CIP per year.
4. Identify and recommend replacement cost(s) and interval(s) for the District Assets based
on best practices for public sewer agencies. The work product should also be a capital
outlay recommendation based on replacing the district sewers, pump stations and assets
at the end of useful life and the annual funding to sustain the long-term replacement. The
goal of this task is to understand if the District is collecting sufficient funds over the asset
life for a replacement.
5. Conduct a rate comparison with other Orange County wastewater agencies (including
special districts and cities) that will include current and future CMSD rates.
6. Prepare a user-friendly computer or spreadsheet-based rate model for CMSD use. The
model should be capable of being updated with actual costs for future annual review of
wastewater rates.
7. Prepare two draft reports (at 60% and 90%)
8. Present 90% draft report and recommendations at one (1) Citizens Advisory Committee
(CAC) meeting and at one (1) Board Study Session.
9. Prepare a final report for presentation at one Board of Directors meeting.
10. Assume four District reviews and four edits by the consultant: one for the initial staff
review of the 90% draft and one each after the CAC, Board Study Session, and Board
Meeting. Please note that the 60% draft is meant to provide progress and confirm that
work direction is progressing in the manner acceptable to the District.
11. Conduct one kick-off meeting; a second meeting at the 60% completion to discuss
preliminary results, discuss issues, and confirm work direction; and a third meeting to
present the 90% product and discuss any recommendations.

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12. Provide one hard copy, one PDF file, and one native MS Word, MS Excel, or other software
used to publish the deliverable file(s).
13. The District will provide all printing and/or duplication. Files may be emailed or sent via
Dropbox to the District, depending on size. The Consultant may have incidental costs.
Please include a detailed sheet of the incidental costs and a description of the costs.
Available sources of information include, but not limited to:
* Budget and actual expenditure information
* CMSD Master Plan
* Customer characteristics
* Sewer Rate Study Final Report, dated January 3, 2022

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INSTRUCTIONS TO CONSULTANTS
I. EXAMINATION OF PROPOSED DOCUMENTS
By submitting a proposal, the consultant represents that it has thoroughly reexamined and
become familiar with the work required under this RFP, and that it is qualified to perform the
work as requested in the Scope of Service.
II. DISTRICT RESPONSIBILITIES
A. The District will provide Consultant with available relevant documents, studies, and relevant
information concerning the project. All documents are available upon request.
B. The District will designate the District Engineer to act in its behalf and manage the work.
III. ADDENDA/CLARIFICATION
Questions/requests for clarification or information must be submitted via email to the
individuals specified below and received no later than the time, day, and date listed within
the Schedule for Selection. Any questions or comments will be responded as indicated within
the Schedule for Selection. The District will not respond to questions received after the
specified time and date above. The District reserves the right to reject all proposals.
Noelani Middenway, District Clerk/PIO Email: nmiddenway@cmsdca.gov
Nathalia Cervantes, Administrative Assistant Email: ncervantes@cmsdca.gov
IV. WITHDRAWAL OF PROPOSAL SUBMITTAL
A consultant may withdraw its proposal at any time to the deadline for submission of
proposals by delivering to District staff (Noelani Middenway) a written request for withdrawal
signed by, or on behalf of, the consultant.
V. RIGHTS OF THE DISTRICT
This RFP does not commit the District to enter into a legal binding agreement, nor does it
obligate the District to pay for any costs incurred in preparation and submission of the
proposal or in anticipation of an agreement. The District reserves the right to reject any or all
proposals.

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VI. SCHEDULE FOR SELECTION
ITEM DATE
RFP Available August 12, 2026
Deadline for submittal of questions is 10AM: September 7, 2026
Staff responses to questions/Addendum posted on September 14, 2026
website:
Deadline to submit proposal by 1:00PM September 28, 2026
Evaluation of Proposals October 5-12, 2026
Execution of Agreement (tentative): October 13, 2026
Start Work (Notice to Proceed): October 14, 2026
Consultant meeting October 27, 2026
Consultant Deliverable Deadline: Draft Report and December 8, 2026
Presentation Materials Due to Staff
Draft Report presented to Board January 12, 2027
(January Study Session)
Present to Citizens Advisory Committee (CAC) January 13, 2027
Consultant Deadline: Final Report Due January 27, 2027
Final Report Presented to the Board (Board Meeting) - February 11, 2027
Accept and File
District Holiday Closures (Closed to the Public) DATE
Labor Day September 7, 2026
Veterans Day November 11, 2026
Thanksgiving Holiday November 25-27, 2026
Christmas Holiday December 24-26, 2026
New Year's Day January 1, 2027
Martin Luther King Jr. Holiday January 18, 2027

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RESPONDING TO THE RFP
For proposals to be considered, submissions must be clear, concise, complete, well organized and
demonstrate both consultant's qualifications, and their ability to follow instructions.
The proposal shall be organized in the format indicated below, shall be limited to sixteen (16) pages
(not including attachments and appendixes) and submitted utilizing Microsoft Office applications for
Word, Excel, PowerPoint. Proposals shall use Arial font no smaller than 11-point size.
The District will evaluate and rank the Technician proposal without the fee component. Once ranked,
the District will open the Fee proposals, then adjust the overall evaluation scores and overall ranking.
Technical Proposal
A. Proposal Cover Sheet
Consultant shall complete and submit the Proposal Cover Sheet along with required
documents mentioned below.
B. Submittal Letter
Include the RFP's title and submittal due date, name of consultant and contact information
(address, telephone, and email). Include designated contact person and corresponding email
address. The letter must state that the proposal will be valid for a 75-day period and that
staffing is available to work immediately on this project. The person authorized by the
consultant to negotiate a contract with the District shall sign the cover letter.
C. Description of Consultant
This section will include information regarding the size, location, the nature of work
performed, years in business and the methodology that will be used to meet the needs of the
District.
D. Proposals
Briefly summarize the Consultant's and Team's experience providing utility rate studies including
wastewater. Describe Consultant's experience justifying and calculating for annual utility rate
charges. Provide an overview of the key team members and their role in this work proposal.
E. Organizational Structure
Describe your consultant's organizational structure for this proposed work, including any
subconsultants. Please provide the names of all team members that will be participating in
this work proposal, their role, and a copy of their resume. Substitution of team

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members/consultant staff will not be allowed unless approved by the District. Request for
substitution must include a resume with work experience. The substitute must have the same
or greater work experience than the incumbent.
F. References & Description of Experience
This section should identify similar projects that the consultant has completed as outlined in
the RFP. Please use this section to indicate the firm's area(s) of expertise and how the
consultant's expertise will be of use to the District. Include the size of the local government
agency (e.g. city, county, independent special district) along with the names of individuals
familiar with your work that can be contacted by District staff.
G. Project Overview
This section should clearly convey the consultant's understanding of the nature of the work
related to the District's project and the general approach the consultant will use to complete
this project. This section should include, but not limited to, a discussion of the organization
of the project and a summary of the proposed approach.
H. Detailed Project Approach
This section should include a full description of each step the consultant will follow in
completing the project. The work description should be in sufficient detail to show a clear
understanding of the work and proposed approach.
This section should also include a description of the format, content and level of detail that
can be expected for each deliverable.
A schedule showing the important milestones along with labor hours by task must also be
included. Cost by task or hourly rates shall not be included in this project schedule.
I. Distinguishing Characteristics
Please describe what distinguishes your consulting firm from other consulting firms who have
successfully performed utility rate studies, specifically wastewater rate studies, and how the
services will benefit the District.