RFQ- Thurston PUD Water Systems Acquisition Feasibility Study

Lewis County Public Works (County) is soliciting Statements of Qualifications (SOQ) from qualified consulting firms to conduct a feasibility study evaluating the potential acquisition, ownership, operation, and long-term management of 54 water systems currently owned and operated by Thurston Public Utility District No. 1 (Thurston PUD) within Lewis County. The study will provide independent technical, financial, regulatory, operational, and risk-based due diligence for consideration by the Lewis County Board of County Commissioners (BOCC).

Thurston PUD has expressed its intent to divest water systems located outside Thurston County and has provided Lewis County the first opportunity to evaluate purchase of these systems. Current information identifies 7 Group A and 47 Group B systems. System counts, connections, assets, financial assumptions, and acquisition terms shall be independently verified as part of the study.

This project is funded through Washington State Department of Health (DOH), Contract GVL32753-0 for the Lewis County Feasibility Study for Consolidation of Thurston PUD Water Systems (Application No. 2025-4651), administered through the Drinking Water State Revolving Fund (DWSRF). The executed agreement provides up to $150,000 in federal funding for the approved scope of work. The consultant contract and all work performed under it must remain within the executed DOH agreement, approved scope, available grant funding, and written Notice to Proceed.

The 54 systems are distributed throughout Lewis County and range from small Group B systems with individual wells and limited storage to larger Group A systems with treatment, multiple wells, storage facilities, water rights, and greater regulatory complexity. Thurston PUD has provided system maps, asset management information, financial summaries, water-right records, planning and compliance information, and transition concepts. Lewis County has also completed preliminary field tours and assembled additional background information. All available information is considered baseline material and shall be verified by the consultant.

The feasibility study is intended to determine whether County ownership is technically feasible, financially sustainable, operationally achievable, protective of public health, and in the long-term interest of Lewis County and the customers served. The study shall:

• Verify the inventory, condition, capacity, water rights, compliance status, treatment, assets, service connections, and capital needs of all 54 systems.

• Independently evaluate acquisition economics, rates, revenues, operating costs, staffing, transition costs, reserves, and long-term capital requirements.

• Evaluate operational staffing, facilities, equipment, billing/customer service, emergency response, and potential in-house, contracted, or hybrid operating models.

• Identify regulatory, water-quality, PFAS, environmental, infrastructure, financial, operational, and ratepayer risks, including risks associated with not acquiring the systems.

• Evaluate physical consolidation, interties, regionalization, alternative management approaches, and other opportunities to improve long-term sustainability.

• Provide clear alternatives, conditions for acquisition, a transition/change-of-ownership roadmap, and a final recommendation suitable for DOH and BOCC decision-making.

• Available Background Information

The County anticipates making available relevant project records in its possession, including Thurston PUD proposal and system presentation materials; current master system and tour information; maps, water-right records, asset management plans, financial summaries, and planning/compliance records; the Sandra Avenue 627 PFAS Evaluation and current remediation information; Lewis County preliminary acquisition, staffing, risk/benefit and BOCC materials; the DOH grant application and approved project scope; and reasonably available County GIS and utility records. The consultant shall determine whether information is current, complete, and suitable for reliance.