Water and Wastewater Cost of Service and Rate Study and Water, Wastewater and Stormwater Impact Fee

REQUEST FOR QUALIFICATIONS Professional Services for Water and Wastewater Cost of Service and Rate Study and Water, Wastewater, and Stormwater Impact Fee Study FULL INSTRUCTIONS - PDF GENERAL INFORMATION The City of Kalispell (City) is soliciting Statements of Qualifications (SOQs) from qualified professional service firms to complete a comprehensive water and wastewater cost of service and rate study; update the City's water and wastewater impact fees; and develop or update the City's stormwater impact fee. The work is intended to provide legally supportable, transparent, and implementable methodologies that align utility rates and impact fees with current operating costs, capital needs, debt obligations, system capacity, and growth-related infrastructure requirements. The firm selected will work closely with City staff and will provide technical analysis, financial modeling, implementation tools, written reports, and presentations suitable for review by the City Council, Impact Fee Advisory Committee, and the public. The SOQ must be uploaded electronically through QuestCDN vBid no later than 5:00 p.m. Mountain Time on November 13, 2026. Late submittals will not be accepted . General questions regarding this RFQ shall be directed to Susie Turner, P.E., at (406) 758-7852 or For security reasons, you must enable JavaScript to view this E-mail address. . When applicable, responses to questions will be posted through the QuestCDN Q&A system for all registered RFQ holders. The City will not be bound by oral interpretations or instructions. Any changes to this RFQ will be issued by written addendum through QuestCDN . The City reserves the right to reject any or all SOQs, waive informalities or irregularities, request clarification, and determine the firm that is best qualified to perform the required services. The selected firm will be chosen based on demonstrated qualifications, relevant experience, project approach, and ability to perform the work. The City will negotiate the final scope, schedule, and compensation with the selected firm. B. ANTICIPATED SCOPE OF SERVICES Following selection, the City and the selected consultant will negotiate a professional services agreement based generally on the scope in Attachment A. The final scope may be refined to reflect available data, City priorities, and the consultant's recommended approach. The anticipated professional services include the following integrated work elements: • Water and wastewater revenue requirement and cost of service analysis. • Water and wastewater rate design, including alternatives and implementation schedules. • Evaluation of wastewater treatment charges, including high-strength wastewater surcharges and applicable wholesale or out-of-City service considerations. • Update of water and wastewater impact fees using current facility plans, capital improvement programs, system capacity, and growth-related project costs. • Development or update of the stormwater impact fee using a defensible methodology tied to growth-related stormwater infrastructure needs and applicable service units. • Financial models and implementation tools that City staff can update after completion of the study. • Presentations and technical support for City staff, the Impact Fee Advisory Committee, City Council, and public meetings. C. STATEMENT OF QUALIFICATIONS AND SELECTION CRITERIA The City will use a qualification-based selection process. Applicants are encouraged to organize their submissions in such a way as to follow the general evaluation criteria listed below. Attachment A references are provided to relate the scored criteria to the anticipated scope; firms may cross-reference information rather than repeat it. Information included within the SOQ may be used to evaluate your firm as part of any criteria regardless of where that information is found within the SOQ. Information obtained from the SOQ and from any other relevant source may be used in the evaluation and selection process. I. Cover Letter a. Provide a one-page cover letter that identifies the firm, primary contact, mailing address, telephone number, and email address, and confirms the firm's interest in and availability for the project. II. Firm Qualifications and Organization – 10 points a. Provide a brief description of the firm, legal organization, and office(s) that will perform the work, including overall capability to perform Attachment A, Sections 1 through 7. b. Identify applicable professional licenses, certifications, or specialized capabilities relevant to the proposed services in Attachment A. c. Provide an organization chart identifying the project manager, key personnel, and any subconsultants, including their principal Attachment A responsibilities. III. Relevant Experience – 20 points a. Describe recent experience, preferably within the past five years, completing municipal water and wastewater cost of service and rate studies for communities of similar size, complexity, and growth conditions (Attachment A, Sections 2 and 3). b. Describe recent experience developing or updating water, wastewater, and stormwater impact fees, including legally supportable methodologies, growth-related cost allocations, credits, and implementation recommendations (Attachment A, Sections 4 and 5). c. Identify experience evaluating wastewater treatment charges, wholesale or outside-City service, metering, and high-strength wastewater surcharges (Attachment A, Section 3.1). d. Provide at least three relevant project examples with client references and contact information that collectively demonstrate experience applicable to the major Attachment A work elements. e. Identify any subconsultants and describe their specific roles, relevant experience, and Attachment A responsibilities. IV. Project Team – 10 points a. Provide resumes for the project manager and key personnel who will perform the work, including each person's proposed role, relevant experience, professional credentials, and Attachment A responsibilities. b. Describe the availability and commitment of the proposed team for the duration of the project. c. Identify the location of key personnel and the firm's approach to coordination with City staff and across the Attachment A work elements. V. Understanding and Technical Approach – 30 points Describe the firm's understanding of the project and proposed approach to Attachment A, Sections 1 through 7, including how the work elements will be integrated. Address the following: a. Water and wastewater revenue requirements, cost of service analysis, cost allocation, and rate design (Attachment A, Sections 2 and 3). b. Capital funding, repair and replacement, reserves, debt service, financing assumptions, and long-term rate stability (Attachment A, Sections 2.1 and 3.1). c. Wastewater treatment cost allocation, including high-strength surcharge methodology and Evergreen Water and Sewer District/other wholesale or outside-City service considerations, as applicable (Attachment A, Section 3.1). d. Water and wastewater impact fee methodology, credits, service units, and implementation (Attachment A, Section 4). e. Stormwater impact fee methodology, growth-related cost allocation, service units, credits, and implementation (Attachment A, Section 5). f. Alternative rate and impact fee scenarios and communication for City staff, the Impact Fee Advisory Committee, City Council, and the public (Attachment A, Sections 1, 3, 4, 5, and 7). g. Documentation of assumptions, transparent and updateable models, staff training, and clear milestone/final deliverables (Attachment A, Sections 6 and 7). h. Identify significant technical, data, legal, scheduling, public-process, or implementation issues anticipated across the Attachment A scope and how the firm would address them, including recommended refinements. VI. Project Management and Schedule – 20 points a. Describe the firm's approach to project initiation, data requests, quality control, internal review, communication, decision tracking, and City coordination (Attachment A, Section 1). b. Provide a proposed project schedule organized around Attachment A, Sections 1 through 7, showing major tasks, dependencies, decision points, draft and final deliverables, committee/Council presentations, and anticipated completion date. c. Describe the firm's current workload and ability to begin and complete the concurrent Attachment A work elements without unnecessary delay. VII. Other Relevant Factors – 10 points a. Identify any litigation, arbitration, contract claims, or premature termination of a professional services agreement within the past five years that is material to the firm's ability to perform this work; explain the status and resolution. b. Describe any additional qualifications, tools, methods, or experience that would add value in completing or implementing Attachment A. D. SUBMITTAL REQUIREMENTS I. The SOQ shall include a one-page cover letter plus a maximum of fifteen (15) pages addressing the selection criteria in Section C. Resumes, a table of contents, and section divider pages are excluded from the page limit. II. SOQs must be uploaded electronically through QuestCDN vBid by 5:00 p.m. Mountain Time on November 13, 2026. III. Failure to comply with the following requirements may be grounds for disqualification: a. Receipt of the complete SOQ by the stated deadline. b. Compliance with the electronic submittal requirements. c. Compliance with the maximum page limit. IV. Each page side containing information containing qualification information will count toward the page limit. Pages containing photographs, charts, or graphics are included in the page count unless specifically excluded above. Faxed or emailed SOQs will not be considered unless authorized by written addendum. E. SELECTION PROCESS AND TENTATIVE SCHEDULE A City evaluation committee will review the SOQs using the criteria in Section C and may select up to three firms for interviews. If interviews are conducted, finalists will receive additional instructions. Interviews are intended to clarify and expand upon information in the SOQ rather than repeat the written submittal. Following evaluation of the SOQs and any interviews, the City will identify the most qualified firm and negotiate a professional services agreement. If an agreement cannot be reached, the City may discontinue negotiations and proceed with another qualified firm or terminate the selection process. Milestone Tentative Date SOQ due November 13, 2026 - 5:00 p.m. MT Finalists notified TBD Interviews, if conducted TBD Selection / scope and fee negotiation TBD City Council consideration of agreement TBD Publication Dates: October 4, 2026 November 1, 2026 ATTACHMENT A ANTICIPATED SCOPE OF SERVICES The City has recently completed facility planning for its water, wastewater collection, wastewater treatment, and stormwater systems. These plans identify requirements for maintaining, operating, rehabilitating, replacing, expanding, and developing the utility systems. The City intends to use this study to establish equitable and financially sustainable water and wastewater rates and to update water, wastewater, and stormwater impact fees based on current facility planning and growth-related infrastructure needs. The scope below describes the City's anticipated work program. The selected consultant may recommend refinements that improve the technical quality, legal defensibility, transparency, or implementation of the studies. Firms should address these work elements through the applicable scored criteria and cross-references in Section C. 1 Project Administration and Public Process a) Conduct a project kickoff meeting and establish a detailed data request, work plan, schedule, decision log, and communication protocol. b) Meet with City staff throughout the project to review assumptions, methodologies, preliminary findings, and implementation options. c) Participate in City Council work sessions, Impact Fee Advisory Committee meetings, and public information meetings as requested by the City. d) Prepare presentation materials that clearly explain technical assumptions, alternatives, financial impacts, and recommended implementation steps. 2 Water and Wastewater Cost of Service Study The consultant will complete a detailed cost of service analysis designed to identify the cost of providing water, wastewater collection, and wastewater treatment services and to allocate those costs among appropriate customer classes and service components. 2.1 Planning Criteria and Revenue Requirements a) Review current utility budgets, audited financial statements, historical revenues and expenses, existing rates and charges, customer and billing data, debt obligations, reserve policies, and other relevant financial information. b) Review adopted or draft water, wastewater, and wastewater treatment facility plans, capital improvement programs, equipment replacement needs, rehabilitation requirements, and projected capital costs. c) Develop a multi-year revenue requirement forecast that identifies the revenues necessary to fund operations and maintenance, staffing, equipment, repair and replacement, capital improvements, debt service, reserve requirements, and other utility obligations. d) Evaluate customer classes, meter sizes, consumption patterns, wastewater characteristics, and other service attributes needed to support a cost of service allocation. e) Identify reasonable assumptions for customer growth, water demand, wastewater flow, inflation, debt financing, interest earnings, and other financial variables. f) Cost Allocation g) Allocate revenue requirements to functional cost categories and appropriate customer classes using generally accepted utility rate-setting practices. h) Provide a clear breakdown of costs associated with water service, wastewater collection, and wastewater treatment. i) Evaluate the allocation of fixed and variable costs, customer-related costs, capacity or demand costs, and other appropriate cost components. j) Document the basis for all allocations, assumptions, and methodologies so the analysis is understandable and reproducible. 3 Water and Wastewater Rate Design Using the revenue requirement and cost of service results, the consultant will evaluate the City's existing rate structures, updated impact fees, and develop rate alternatives that provide sufficient revenue, equitable cost recovery, and reasonable rate stability over the planning period. 3.1 Rate Evaluation and Alternatives a) Review existing water and wastewater rate schedules, fee schedules, service charges, meter-related charges, impact fees, and other recurring utility charges. b) Evaluate the relationship between fixed charges and usage-based charges and recommend alternatives consistent with the City's revenue requirements and policy objectives. c) Evaluate customer classifications and recommend modifications where appropriate. d) Evaluate wastewater treatment charges applicable to Evergreen Water and Sewer District, outside-City service, or other wholesale arrangements, as applicable to the City's agreements and cost of service. e) Evaluate high-strength wastewater surcharges and recommend an equitable methodology for recovering treatment costs attributable to higher-strength discharges. f) Evaluate repair and replacement funding, capital funding, debt service coverage, reserve targets, and the use of debt financing in relation to long-term rate stability. g) Develop alternative multi-year rate and impact fee implementation schedules for City Council consideration, including the estimated effects on representative customer classes. h) Identify any recommended changes to policies, resolutions, ordinances, billing practices, or fee schedules needed to implement the selected rate structure. 4 Water and Wastewater Impact Fee Study The consultant will update the City's water and wastewater impact fees using current facility plans, capital improvement programs, system capacity information, growth projections, and applicable Montana requirements. The methodology will distinguish growth-related system expansion from existing deficiencies, rehabilitation, replacement, and other costs that are not attributable to new development. 4.1 Impact Fee Methodology and Calculations a) Review the City's current water and wastewater impact fee methodologies, schedules, service units, credits, assumptions, and supporting documentation. b) Identify existing and planned facilities that provide capacity for growth and determine the portion of project costs appropriately attributable to new development. c) Evaluate available system capacity, projected demand, planning horizon, financing assumptions, and timing of growth-related capital improvements. d) Develop updated service-unit or equivalent-demand methodologies for water and wastewater, including appropriate customer or development categories. e) Identify and calculate appropriate credits or offsets for future rate-funded debt service, grants, existing fund balances, developer contributions, or other revenues, where applicable. f) Develop recommended impact fee schedules and alternative policy scenarios for City review and City Council consideration. g) Provide implementation guidance, including recommendations for periodic indexing, updates, administrative procedures, and documentation needed to support the fees. 5 Stormwater Impact Fee Study The consultant will develop or update a stormwater impact fee that allocates eligible growth-related stormwater capital costs to new development using a clear, proportional, and administratively practical methodology. 5.1 Stormwater Methodology and Calculations a) Review the City's stormwater facility planning, capital improvement program, drainage system information, growth projections, and current impact fee methodology, if applicable. b) Identify stormwater capital improvements that provide capacity or system benefit to new development and separate growth-related costs from existing deficiencies, maintenance, regulatory compliance, and rehabilitation costs that are not attributable to growth. c) Evaluate appropriate service units and demand factors, which may include impervious area, equivalent residential units, land use categories, or another methodology supported by the available data and City policy. d) Determine the allocable growth-related cost per service unit and develop a recommended impact fee schedule for residential and nonresidential development. e) Evaluate credits, offsets, developer-constructed improvements, and other adjustments needed to avoid double payment and maintain proportionality. f) Provide recommended administrative procedures for assessment, credits, appeals, periodic indexing, and future updates. g) Develop alternative fee scenarios, where appropriate, to support discussion with the Impact Fee Advisory Committee and City Council. 6 Financial Models and Implementation Tools a) Provide electronic financial and impact fee models in a format that can be maintained and updated by City staff. b) Clearly identify model inputs, assumptions, formulas, data sources, and outputs. c) Include scenario capability sufficient to evaluate alternative revenue requirements, rate implementation schedules, capital programs, growth assumptions, and impact fee options. d) Provide working sessions or training for City staff on use of the models and procedures for future updates. 7 Reports and Deliverables a) Technical memorandum(s) documenting key assumptions and methodology decisions at appropriate project milestones. b) Draft and final water and wastewater cost of service and rate study report. c) Draft and final water and wastewater impact fee study report. d) Draft and final stormwater impact fee study report, which may be combined with the water and wastewater impact fee report if the City approves a consolidated format. e) Recommended rate schedules and impact fee schedules, including alternative scenarios requested by the City. f) Editable financial models, calculation workbooks, and supporting schedules. g) Presentation materials and attendance at staff, advisory committee, City Council, and public meetings as required. h) A concise implementation summary identifying recommended actions, timing, and any required ordinance, resolution, policy, or administrative updates. 8 References All references can be found on the City Website or via request to Public Works as follows: a) Facility Plans: https://www.kalispell.com/253/Engineering i) AWWTP Facility Plan Update (PDF) ii) AWWTP Facility Plan Update Executive Summary (PDF) iii) Stormwater Facility Plan (PDF) iv) Stormwater Facility Plan Executive Summary (PDF) v) Wastewater Facility Plan Update (PDF) vi) Wastewater Facility Plan Update Executive Summary (PDF) vii) Water Facility Plan Update (PDF) viii) Water Facility Plan Update Executive Summary (PDF) b) 2020 Water and Sewer Rate Study: Request to Public Works ( For security reasons, you must enable JavaScript to view this E-mail address. ) i) 2020 Water and Wastewater Rate Study c) Impact Fees Study: https://www.kalispell.com/261/Impact-Fees i) 2017 Stormwater Impact Fee Study ii) 2019 Impact Fees for Water and Wastewater

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