Water & Sewer Rate Study

The City of Rochester Hills is seeking a consultant to conduct a comprehensive Water & Sewer Rate Study. The study aims to ensure that rates are sufficient to fund necessary improvements while remaining equitable for customers. The consultant will be responsible for performing tasks such as financial analysis, cost of service and rate design, stakeholder engagement, and providing key deliverables including a comprehensive final report, an editable rate model, ordinance recommendations, and presentation materials. The proposal should include a detailed approach to the project, team qualifications, relevant experience and references, and a fee proposal. Key aspects of the project include: • Developing a rate structure that meets the guiding principles of financial sufficiency, equity and fairness, public defensibility, price stability, and legal and regulatory compliance • Conducting a thorough review of the City's existing rate model and providing a professional recommendation on the most efficient path forward • Analyzing the water and sewer funds' historical revenues, expenses, and capital expenditures • Developing a detailed cost-of-service allocation and alternative rate structures for the City's consideration • Providing a customer bill impact and affordability analysis • Meeting with City staff and external agencies to understand system operations and future capital needs • Presenting findings and recommendations to City staff and the public