6/4/2026
1 RiversideCA.gov1
RiversideCA.gov
WATER COST OF SERVICE ANALYIS AND RATE DESIGNCity Council June 16, 2026Riverside Public Utilities RiversideCA.gov2
1. Previous Water Cost of Service Analysis (COSA) and Rate Design completed in 2023a. Supported the Water Utility Five-Year Rate Planb. Effective October 1, 2023, with final year effective July 1, 20272. Updated Water Cost of Service Analysis and Rate Design necessary to plan beyond current Water Utility Five-Year Rate PlanBACKGROUND1 2 6/4/2026
2 RiversideCA.gov3
1. Comprehensive review of all rate schedules2. Forecasts future revenue requirements3. Equitable allocation of costs among customer classes4. Water utility rate trends study5. Five-year proposed rate design recommendation6. Customer impact analysis7. Recycled water rate design recommendation8. Budget-based rate design and implementation plan9. Elevation charge rate design and implementation plan10. Water Treatment Plant rate design and implementationWATER COSA AND RATE DESIGN PROJECT RiversideCA.gov4
Considerations:1. Changing Industry and Regulatory Requirements –The impacts of drought mandates and treatment requirements2. Operating and Infrastructure Costs – Production, transmission, distribution, and capital improvements3. Essential to identify the cost to serve the City’s customers and ensure equitable allocation of cost responsibility among customer rate classes.FUTURE WATER REVENUE REQUIREMENTS3 4 6/4/2026
3 RiversideCA.gov5
1. December 2, 2025 – RFP was posted on PlanetBids2. January 14, 2026 – Proposals were received from four consultants3. February 2026 - RPU staff completed proposal reviews, evaluation, and scoring4. Evaluation Scoring:a. Qualifications and project approach 30%b. Experience and references 25%c. Overall proposal 25%d. Proposal pricing 20% RFP 2494 RiversideCA.gov6
1. Carollo Engineers, Inc. received the highest scorea. California experience including recycled water rates and budget-based ratesb. Experience with the City of Riverside providing detailed knowledge of the water and wastewater utilitiesc. Will provide a comprehensive and complete bill impact statistical analysis of all rate design impacts to all customersRFP 24945 6 6/4/2026
4 RiversideCA.gov7
RFP 2494 RANKINGRankTotal PointsTotal CostLocationVendor1885.41$271,960Riverside, CACarollo Engineers2713.34$184,840SantaBarbara, CARobert D Niehaus, Inc.3676.16$296,945Overland Park,KSBlack & Veatch Corporation4667.81$223,310Lakewood,CANewGen Strategies and Solutions, LLC RiversideCA.gov8
WATER COSA AND RATE DESIGN PROJECTAmountConsultant: Carollo Engineers, Inc$126,080Phases I, II, and III- Cost of Service Analysis, Rate Trends Study, Rate Design$28,720Phase IV- Recycled Water Rate Design and Implementation$45,040Phase V- Budget-Based Rate Design and Implementation$16,880Phase VI – Elevation Charges Rate Design and Implementation$21,160Phase VII – Water Treatment Plant Rate Design and Implementation$237,880Subtotal$34,080Phase VIII – In-Person Meetings$271,960Grand Total7 8 6/4/2026
5 RiversideCA.gov9
That the City Council:1. Approve Professional Consultant Services Agreement from Request for Proposal No. 2494 for Water Cost of Service Analysis and Rate Design with Carollo Engineers, Inc., of Riverside, California, through December 31, 2027, in the amount of $271,960; and2. Authorize the City Manager, or designee, to execute the Professional Consultant Services Agreement and optional two-year extension, if necessary, including making minor, non-substantive changes.RECOMMENDATION9