Request for Proposals - Utility Rate Study

Proposals must be submitted by noon on Monday December 6, 2021

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Contact:          Patrick Barrett
                      Assistant Township Manager
                      315 Clay Road, PO Box 308

                      Lititz, PA  17543-0308

Purpose of Request:    The Warwick Township Municipal Authority “The Authority” is requesting proposals from firms to provide a rate analysis of the Authority’s water and sewer rates.  Proposals must be submitted by noon on Monday December 6, 2021, to Patrick Barrett, Assistant Township Manager, 315 Clay Road, PO Box 308, Lititz, PA  17543-0308. 

Warwick Township Municipal Authority: The Warwick Township Municipal Authority owns and operates both a water and sewer system that serves Warwick Township.  The water system consists of distribution and transmission mains, two wells, a wellhouse, two pump stations and two water storage tanks.  It encompasses two separate and unconnected service areas with different sources of water.  The larger part of the water system is referred to as the Lititz system because bulk water is purchased from the Borough of Lititz and then sold retail to Authority customers.  This service area is immediately adjacent to the Borough of Lititz. The other portion, which relies on two wells to produce and provide water, is referred to as the Rothsville system.  The service area of this system is the Rothsville area located in the eastern portion of Warwick Township.  The sewer system includes collection and conveyance sewers, seventeen pump stations and 92.2 miles of lines.  Sewage from Warwick Township is treated by agreement at the Lititz wastewater treatment plant.


  • Specify the cost for each utility and for the entire project.
  • Specify an approximate project timeline through final approval of the recommended rates.
  • Provide a profile of staff who will be performing the rate analysis.
  • Provide an organizational chart showing who will work on the project and in what capacity.
  • Conduct four meetings with Authority staff at: Kickoff, twenty-five percent completion, fifty percent completion and final completion.


The consultant will be responsible for conducting a comprehensive cost of services and rate design study for both water and sewer utilities including the following major elements:

  • Review existing revenues, compare to expenses and determine if there are any deficiencies in the current rate structure.  Determine the required rates to meet operating expenses and capital costs for the future needs of the system.
  • Provide a recommended rate structure that will recover projected revenue requirements for a five-year period.
  • Review the funding requirements for capital equipment replacement and recommend prudent reserve policy for operations, capital replacement and emergencies.
  • Provide general discussion on current policies and trends related to Act 43 of 2021, payment options, connections, disconnects, etc., in comparison with other utilities.
  • Review miscellaneous fees to assure they are reasonable and not outdated.
  • Provide the Authority with an Excel spreadsheet with rate options so staff can utilize it for future evaluation.
  • Present the report and discuss recommendations with the Authority Board.


  • A description of the firm’s qualifications for this type of work and recently completed projects that are similar in nature to the scope of services.
  • Provide a list of three similar organizations, with an associated point of contact for each, for which the consultant has conducted similar rate analyses.


The Authority will evaluate the proposals on the basis of qualifications, relevant experience and the firm’s approach to the rate study as well as the fee for the engagement.  During the evaluation process the Authority reserves the right to request additional information from proposers.