REQUEST FOR STATEMENT OF QUALIFICATIONS RFQ WATER RATE STUDY PROFESSIONAL SERVICES

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1 Professional Services Water Rate Study Central Arkansas Water RFQ PERSONS RECEIVING THIS REQUEST FOR STATEMENT OF QUALIFICATIONS (RFQ) FROM THE INTERNET OR BY FAX MUST CALL (501) AND REGISTER AS POTENTIAL RESPONDER. FAILURE TO REGISTER MAY RESULT IN YOUR MISSING RFQ AMENDMENT(S). MISSING AN AMENDMENT MAY RESULT IN YOUR OFFER BEING FOUND NON-RESPONSIVE. REQUEST FOR STATEMENT OF QUALIFICATIONS RFQ WATER RATE STUDY PROFESSIONAL SERVICES Mailing Date May 7, 2018 Submittal Due Date 2:00 P.M.CT Thursday, June 7, 2018 TO Elizabeth Tuck-Rowan, CPPO, CPPB, C.P.M., A.P.P., CPSD Purchasing Manager Purchasing Office Central Arkansas Water 221 East Capitol Avenue, Third Floor Little Rock, AR (501)

2 CENTRAL ARKANSAS WATER REQUEST FOR STATEMENT OF QUALIFICATIONS RFQ WATER RATE STUDY PROFESSIONAL SERVICES TABLE OF CONTENTS Purpose.....Page 3 Request of Qualifications... Page 4 General Provisions....Page 4 Submission of Responses...Page 5 Project Background Page 5 Scope of Work Page 6 Timeline......Page 7 Evaluation Process Page 7 Statement of Qualifications Format Page 8 Appendix 1.Page 10 Water Rate Study Professional Services 2 P a g e

3 CENTRAL ARKANSAS WATER REQUEST FOR STATEMENT OF QUALIFICATIONS RFQ WATER RATE STUDY PROFESSIONAL SERVICES 1. Introduction 1.1 Purpose The purpose of this Request for Qualifications (RFQ) is to request interested firms to present their qualifications, capabilities, and approach to provide Water Rate Study services to Central Arkansas Water. Arkansas Code Annotated to 807 establishes the policy of the State of Arkansas and the political subdivisions that contracts for certain professional services be negotiated on the basis of demonstrated competence and qualifications at a fair and reasonable price. It is CAW's policy to encourage the involvement of Disadvantaged Business Enterprises (minority-owned and women-owned businesses) in contract awarded. DBE's are particularly invited to submit Statements of Qualifications, either as a prime contractor, subcontractor or as a part of a joint venture. Non-DBE firms are encouraged to arrange subcontracts or joint ventures with DBE's prior to submission of their Statements of Qualifications. CAW has a policy of non-discrimination and abides by all laws, rules, and executive orders governing equal employment opportunity. As employers, CAW contractors and service providers may not discriminate on the basis of race, color, creed, religion, sex, national origin, age, disability, veteran s status, marital status, sexual orientation, gender identity, genetic information, political opinions, or political affiliation. CAW encourages its contractors and service providers to accept the goal of having a workforce that generally reflects the demographic composition of the community in which the contractors and service providers are located. Israel Boycott Notice - Company represents that it does not currently engage in refusals to deal, termination of business activities, or other actions that are intended to limit commercial relations with Israel or persons or entities doing business in Israel or in Israeli-controlled territories in a discriminatory manner other than boycotts to which 50 U.S.C. 4607(c) applies, and Company agrees that it will not, during the term of Agreement, engage in such refusals, termination, or other actions. (Appendix 1) Water Rate Study Professional Services 3 P a g e

4 1.2 Request for Qualifications Central Arkansas Water invites sealed Statements of Qualifications for Water Rate Study professional services in accordance with the provisions, specifications, and solicitation instructions established in this RFQ. Respondents must submit five (5) hard copy sets and one electronic copy of their Statement of Qualifications must be in a sealed envelope bearing the following information: RFQ TITLE: CAW Water Rate Study DUE DATE: June 7, 2018 DUE TIME: LOCATION: 2:00 P.M. CT 221 East Capital Avenue, 3 rd Floor, Purchasing, Little Rock, AR. Each respondent assumes full responsibility for delivery and deposit of the completed Statement of Qualifications on or before the deadline for submission. Central Arkansas Water is not responsible for any loss or delay with respect to the delivery of the Statements of Qualifications. ANY STATEMENT OF QUALIFICATIONS RECEIVED AFTER THE DATE AND TIME SHALL NOT BE CONSIDERED. Please Note: The electronic copy may be provided by USB, CD, or electronic file transfer to liz.tuck-rowan@carkw.com. Confirmation of receipt will be provided as soon as possible; however, it is the responsibility of the submitting firm to ensure receipt by the submission deadline. 1.3 General Provisions Consulting firm(s) should be independent and free of any conflict of interest in representing Central Arkansas Water. Preliminary study findings (3 options) must be completed by November 15, 2018 and final study findings must be completed by December 13, Central Arkansas Water will supply personnel to assist in the study to the extent and in a manner to be jointly determined by the firm and Central Arkansas Water to minimize consulting fees and to maximize personnel training. All supporting working papers or schedules necessary to determine the cost of services are to be supplied to Central Arkansas Water and indexed in such a manner as to facilitate use. Water Rate Study Professional Services 4 P a g e

5 Central Arkansas Water will provide the consulting firm(s) with the needed information and reports concerning operations, as required by the consulting firm. Twenty (20) copies of the final bound report shall be supplied to Central Arkansas Water. The selected firm must be a unanimous choice by selection committee members. 1.4 Submission of Responses a. Questions concerning the Request for Qualifications for CAW may be directed to Jeff Mascagni electronically at jeff.mascagni@carkw.com. No inquiries/questions regarding this RFQ will be answered if received after 3:00 p.m. (CST) on May 18, 2018 to allow ample time for distribution of answers and/or comments to this RFQ. b. Responses should be clear, concise, and complete. They should be submitted using an 8 ½ by 11 portrait format. Illustrations, if required, may be submitted on no larger than 11 by 17 sheets. c. Responses are limited to a maximum of thirty (30) pages per proposal. A single side equals to a single page. d. Responses may be bound by any means except by 3-ring binders and paper/binder clips. 2. Project Background Central Arkansas Water was formed on July 1, 2001 through a merger of Little Rock Municipal Water Works and North Little Rock Water Department. A goal of the merger was to equalize the rates for Little Rock and North Little Rock inside-city customers. Central Arkansas Water began the equalization process with a rate study for the years 2002 and The study was updated in 2003 for the years 2004 and 2005 with the major component of that study being to change the rate structure from a declining block structure to a flat rate structure and further defining the various classes of customers. The study was updated in 2005 for the years 2006, 2007, and 2008 and again in 2008 for the years 2009, 2010, and During the 2008 update, an inclining block was added placing a 30% additional charge on monthly usage in excess of 3,300 cubic feet per meter, a conservation rate discount of 15% was added on meters with monthly usage less than 300 cubic feet, and a watershed protection fee of.45 per 5/8 meter was added on all accounts. Rates for all inside-city customers were equalized with the rate increase effective January 1, Rate studies were completed in 2012 and 2015 for the years through The current rate structure includes a minimum charge, which varies by meter size and location depending on whether the meter is inside or outside of the city. This minimum charge includes 200 cubic feet of water consumption. Currently the types of Water Rate Study Professional Services 5 P a g e

6 customer classes are: residential, commercial, large volume, sprinkler, raw water, wholesale, and fire service. 3. Scope of Work 3.1 Scope of Services and Deliverable Products Central Arkansas Water is contracting for services of a water rate study plan. The following is a listing of the general tasks that are anticipated will be performed by the consultant as part of this project. Note that these specifications are not comprehensive, but serve to provide basic requirements. The utility s expectation is that the expertise and experience of the consultant selected for this project will be also help define the tasks and deliverables that are required for a successful project. The desired consulting services and delivered product shall include the following: 1) Meet with Commission and staff to discuss and finalize project objectives. Review current policies in place including capital from rates, reserves, rate stabilization, conservation, and affordability. Make recommendations on changes to policies as deemed necessary. 2) Conduct a detailed review of the existing water rates and develop a recommended rate structure which will provide sufficient revenue to fund all projected costs. The rate structure shall be equitable in nature, reflect cost of service, take into account all rate related policies, and follow generally accepted rate practices as promulgated by the American Water Works Association. The work plan should include the following: a. Comprehensive review including all retail customers? b. 5 year consumption projection and revenue calculation by month c. Sensitivity analysis including rate increases needed to increase water main replacements/other capital improvements to varying levels d. Sensitivity analysis including WPF increases needed to increase watershed protection activities to varying levels e. Recommendations must continue strategy to reduce weather variability impact on revenues f. Recommendations must consider decline in per capita residential usage g. Recommendations must include a rate setting period of up to 5 years and overall forecast of 10 years 3) Supply a project schedule for developing the recommended rate structure with identifiable deliverables including preliminary and final presentations and reports. 4) Provide an easy-to-use electronic rate model in MS Excel which may be readily controlled to review alternative scenarios. Provide training to staff in the use of the rate model. 5) Provide three preliminary rate structure options for Commission consideration (including charts and graphs). 6) Meet or confer with staff and consultants as needed and attend all public meetings to present preliminary rate structure options in an effort to obtain input. Water Rate Study Professional Services 6 P a g e

7 7) Provide final rate structure for Commission approval. (Including charts and graphs). 3.2 Project Timeline In their Statement of Qualifications, respondents should provide a proposed schedule with estimated hours for all of the implementation tasks contained in the proposed project work plan. The following are tentative milestones for this project to be used as a guideline for proposal: Milestone Date RFQ Issued May 7, 2018 RFQ Responses Due June 7, 2018 Select Firm June 14, 2018 Complete Contract Negotiations June 20, 2018 Present Contract to Commission June 21, 2018 Execute Contract June 22, 2018 Present Preliminary Results November 15, 2018 Present Final Results December 13, Evaluation Process 4.1 Qualifications Evaluation Process The Request for Qualifications (RFQ) format is intended to present interested firms the opportunity to demonstrate their ability to perform the required services. The format is left to the discretion of the responder to allow creativity and uniqueness of approach. Proposal submission is not intended to be expensive or extravagant, although the presentation should be considered for simplicity and ease of understanding. Upon the review of qualified proposals, the Review Committee shall select the firm deemed best qualified and most responsive. The committee will determine whether in-person interviews will be required or whether a decision may be reached by reviewing the written proposals. The selected firm will be notified and contract negotiations will commence. If Central Arkansas Water is unable to negotiate a contract, CAW shall cease negotiations and begin negotiations with the next most qualified and most responsive responder. Evaluations will be based upon the capability of the firm and upon the abilities and accomplishments of the individual or individuals assigned to perform the services. In addition, any experience in working with governmental entities or clients on water rate development should be cited by the responder. Of particular emphasis will be the qualifications of the key personnel that the responder identifies to work with CAW. 4.2 Methodology Water Rate Study Professional Services 7 P a g e

8 Statements of Qualifications will be evaluated by a selection committee composed of representatives from the administrative and finance departments. RATING WEIGHT WEIGHTED FIVE AREAS OF CONSIDERATION (0-10) (0-10) RATING a. General & Professional Reputation 5 b. Project Team & Qualifications 10 c. Experience with Water Rate Development 10 d. Work Plan for this Project 5 e. Proximity & Familiarity with Geographical Area 5 Rating Index Total General and Professional Reputation Indicate number of years in business, office location(s), current limits of professional liability insurance, and resources of the firm(s) to perform the work. Project Team and Qualifications Identify team structure (including other consultants) and responsibilities. Provide qualifications of the key personnel. Experience with Water Rate Development Illustrate a history of successful projects of similar scope, budget, and strategy as the project described in this solicitation by listing five (5) projects that have been completed within the last ten (10) years. This information should include all claims, change orders, and/or contract amendments. Also include the clients names, and for each client a current contact telephone number of a client representative who is familiar with the project details. Work Plan for This Project Describe the overall approach to this project. Indicate unique qualifications of your firm(s) and how the unique qualifications pertain to this project. Proximity and Familiarity with Geographical Area Indicate experience in working with city agencies and municipal utilities within the State of Arkansas. No assurances are given or intended to imply that CAW and their respective committee will award a contract, as a result of this request or submittal of qualifications. CAW will not be liable for any costs associated with responding to this request or negotiating a contract. 5. Statement of Qualifications Format Water Rate Study Professional Services 8 P a g e

9 The Statement of Qualifications that the Respondent submits shall contain, as a minimum, the following information in the following order: 1. Transmittal Letter (including Company Background) 2. Project Team & Qualifications 3. Experience with Water Rate Development (including project list with contact info) 4. Work Plan for this Project (Statement of Project Understanding, Brief Summary of Consultant s Technical Approach, Methodology, and Deliverables) 5. Proximity & Familiarity with Geographical Area Submit your proposal to: Central Arkansas Water Purchasing Department 221 East Capital Avenue Little Rock, Arkansas ATTN: Elizabeth Tuck-Rowan, CPPO, C.P.M. Water Rate Study Professional Services 9 P a g e

10 Appendix 1 RESTRICTION OF BOYCOTT OF ISRAEL CERTIFICATION Pursuant to Arkansas Code Annotated , a public entity shall not enter into a contract valued at $1,000 or greater with a company unless the contract includes a written certification that the person or company is not currently engaged in, and agrees for the duration of the contract not to engage in, a boycott of Israel. By signing below, the Contractor agrees and certifies that they do not boycott Israel and will not boycott Israel during the remaining aggregate term of the contract. If a company does boycott Israel, see Arkansas Code Annotated Bid Number/Contract Number Description of product or service Contractor name Contractor Signature: Signature must be hand written, in ink Date: Water Rate Study Professional Services 10 P a g e

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