Utility Financial Consulting

The City of Richmond is soliciting proposals to establish a contract through competitive negotiation for the provision of services to assist the Departments of Public Utilities with its financial planning, budgeting, organizational design, financial technology implementation, and policy development services to better manage its gas, electric, water, wastewater, stormwater utilities as well as other fee-based services.

The City operates municipally owned gas, electric, water, wastewater, and stormwater utilities. In addition, the City provides other fee-based services such as trash collection, animal adoptions, parking, event space rentals, recreation admissions, and burial services.

The City first established a contract for DPU financial services in 2008. Over the years since, the services provided by the consultant have expanded to include developing the Cost of Service for all DPU utilities including the services identified in Section 1.2.2 below.

Each of the City’s five utilities are operated on a self-sustaining basis and follow all policies and directives of the City. DPU is responsible for setting rates for its regional customers and ensuring that services delivered meet the utility needs of its customers in a consistent and reliable manner while providing cost effective, safe service. A brief description of each utility follows.

The Gas Utility functions as a distribution and retail utility. The Gas Utility serves roughly 123,000 residential, commercial, and industrial customers daily, based on a 12-month average, in the city of Richmond and the counties of Chesterfield, Hanover, and Henrico via 1,974 miles of pipeline. The Gas Utility administers the MetroCare Heating Assistance Program pursuant to City Code § 28-28 and the regulations promulgated thereunder.

The Water Utility operates a 132 million gallons-per-day water purification plant and provides treatment and distribution services throughout the city of Richmond and surrounding localities (i.e., Chesterfield, Hanover, and Henrico counties) adjacent to the city of Richmond limits under long-term wholesale contracts, which provide rate structures based on Cost-of-Service agreements. The distribution system consists of approximately 1,000 miles of mains, nine pumping stations, one reservoir, and ten water storage tanks. The Water Utility serves roughly 68,000 customers daily, based on a 12-month average. The Water Utility provides routine and emergency water services to the City including water for fire protection and installation and maintenance of fire hydrants, water valves, and water mains. The Water Utility administers the MetroCare Water Assistance Program pursuant to City Code §§ 28-271 through 28-275 and the MetroCare Water Conservation Program pursuant to City Code §§ 28-299 through 28-303.

The Wastewater Utility provides wastewater collection and treatment services to the city of Richmond and the counties of Chesterfield and Henrico. The Wastewater Utility also provides wholesale wastewater services to Goochland County through a long-term contract. The wastewater treatment facility provides pollutant removal, including removal of nitrogen and phosphorous, through multiple treatment processes.

DPU implemented a Stormwater Utility in July 2009 to manage the stormwater that runs off the properties of City residents and business owners. DPU implemented a comprehensive stormwater quality management plan to comply with federal and state mandates. The Stormwater Utility also provides design and construction of new and replacement infrastructure for the aging storm sewer system.

The Stormwater Utility maintains approximately 35,000 catch basins, 600 miles of ditches, and 180 miles of storm sewer pipe. The Stormwater Utility operates and funds the Erosion and Sediment Control Program, the Chesapeake Bay Protection Program, the Mosquito Control Program, and the floodwall along with its levees and canal systems. The Stormwater Utility manages source control for industrial stormwater sources owned and operated by the City, and it manages and operates the Industrial Pretreatment Program for industrial sources to the sanitary sewer. The Stormwater Utility serves roughly 72,000 customers daily.

DPU operates an Electric Utility that purchases electricity from Dominion Energy and distributes it to over 37,000 streetlights in the municipal streetlight system. The Electric Utility installs, maintains, and operates the streetlight infrastructure as well as five substations throughout the City. It contracts with Dominion Energy to operate and maintain approximately 6,000 streetlights in the southwest area of Richmond.