Quotes Due: 10 Year Revenue Model

Posted on Nov 2, 2017 in

November 16, 2017 @ 4:00 pm – 4:00 pm

Posted 11/2/17


Rivanna Water and Sewer Authority is a regional non-profit public corporation and political subdivision of the Commonwealth of Virginia, that supplies drinking water to and treats the sewage of the City of Charlottesville and certain areas of the County of Albemarle.

Rivanna Solid Waste Authority is a regional non-profit public corporation and political subdivision of the Commonwealth of Virginia that provides solid waste and recycling services to the City of Charlottesville and County of Albemarle.


See attached document


All inquiries for information regarding this RFQ should be directed to:

Lonnie Wood, Purchasing Agent, lwood@rivanna.org

695 Moores Creek Lane, Charlottesville, VA 22902-9016

Telephone: (434) 977-2970


RFQs will be received until 4:00 PM EST on November 16, 2017. RFQs received after the date and time will not be accepted. RFQs may be shipped, mailed or hand delivered to 695 Moores Creek Lane, Charlottesville, VA 22902-9016. Telephoned, emailed or faxed quotes will not be accepted.

RFQs must be clearly labeled with the following information:

  • RFQ No. 1073
  • Title: Ten Year Revenue Model
  • RFQ Due Date: November 16, 2017
  • From: Name of Firm submitting RFQ

Ten-Year Revenue Model

A ten-year rate model (the Model) will be developed that will break out each of the 6 (six) rate centers, although the 4 (four) Non-Urban rate centers should be grouped together. For each rate center, there needs to be a separation of variable inputs and follow-through between debt service charges and operational rates.

  • Operations – The Model will have inputs of various variables for operating, such as direct known costs, changes and inflation, changes in flow estimates, operating reserves, etc.
  • Capital and Debt Service – The Model will have capital and related debt service costs that will need to conform to the various cost allocation agreements, account for current debt service charges, accommodate new project costs, factor in debt service coverage targets/reserves assumptions to show resulting annual and monthly debt service charges for the two (2) retail customers by rate center.
  • Combining the operating rates and debt service charges for a total annual revenue requirement needed of the two (2) retail customers.

The Model needs to show a summary of charges and rate comparisons and ultimately the required revenues charged to each customer on an annual basis.

The model will be used for the budget process beginning in roughly mid-January 2015.

  • A possible presentation to the board may be needed in in February.

Training and Updating

It is intended the Model will be used annually during the Capital Improvement Plan and Operations budgeting process. The service contract must provide initial support and training of RWSA staff on how to use the Model. Support must be provided annually and as needed when updating the Model, adjusting or adding new input variables, and/or refining how the Model is used.


The quote should provide:

  • A lump sum quote for the initial Model creation;
  • Overall description of how you or your firm would approach creating a wholesale 10-year revenues and rate model include timeline for completion;
  • A lump sum quote for travel to/from Authority Board meeting and presentation of the model and its results;
  • Estimated hours and cost per hour of initial training of RWSA staff on how to use the Model;
  • Estimated hours and cost per hour for annual updating of the Model as described in the Scope of Work.
  • Name of the firm, local address, telephone number, email address, and name of the contact person;
  • A description of the Firm’s and/or Individual’s experience and qualifications with the wholesale (or retail) rate and revenue studies. Firm or Individuals must able demonstrate at least five (5) years of current experience in rate modeling and or study formulations for municipal utilities; and
  • Provide at a minimum three (3) references from local governments and political subdivisions that your firm has served in the past three (3) years; preferably those where one or more of your engagement team provided those services.


Depending on the estimated costs, the RWSA intends to issue a standard Purchase Order for these services (see attached standard provisions). RWSA is also open to executing a service contract if one is desired by the eventual offeror who is awarded the work.

Please read the full RFQ for more details.

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