Cape Fear Public Utility Authority could spend up to $84,660 on consultants for rate study

The Cape Fear Public Utility Authority could spend up to $84,660 on consultants for its newest rate study. The bids are in and information provided by the CFPUA purchasing department showed a total of 7 firms submitted quotes ranging from $42,900 to a nearly $85,000.

Bid totals were as follow:

Consultant / Total Cost
AUS / 42,900
Municipal & Financial Services Group(MFSG) / $ 44,200
Utility Advisors’ Network, Inc / $ 48,000
Raftelis Financial Consultants, Inc / $ 49,875
Burton & Associates / $ 53,928
CH2MILL / $ 79,500
Black & Veatch / $ 84,660

Municipal & Financial Services Group (MFSG) performed the Authority’s initial rate study and proposed the rate structure in place now. MFSG submitted the second lowest bid this time around coming in at $44,200. Their ongoing relationship with CFPUA makes them a likely front-runner to secure the study this time around as well. Their previous report is only two years old and it’s questionable what new ideas they might bring to the table.

Former CFPUA board member Kathryn Johnston wanted to see the board move away from spending money on consultants for rate structure input. With the decision to nearly double rates already in place there is concern the study will only serve as either a high priced propaganda piece to support the status quo, or a scapegoat on which to blame the impending rate increases.

It should be pointed out that some of the information requested in the rate study proposal is freely available online through organizations like The North Carolina League of Municipalities and the American Water Works Association.

The Authority will continue to move the bidding process forward holding rate study interviews December 6th, from 12:00 to 5:00pm, at their offices on Government Center Drive.