Weslaco selects NewGen team to lead municipal utility rate study after vendor interviews

The Weslaco City Commission on April 7 interviewed three firms to perform a comprehensive municipal utility rate study and voted to recommend NewGen Strategies and Solutions LLC as the city's consultant for the project (RFB 2024-25-12).

The special meeting included presentations and Q&A from representatives of three proposing firms: Willdan (represented by Dennis Gural and Jason Gray), Raftelis (Angie with support from Sarah Neely and Brandon Batter) and NewGen Strategies and Solutions (Andy McCartney, Richard Campbell and Dave Yanke). Commissioners and staff pressed each presenter on public engagement strategies, options to protect affordability for seniors and disabled residents, regional benchmarking, timeline and fees.

Willdan told commissioners its typical process begins with a revenue-requirement analysis, cost-of-service classification and rate design; the firm said it can deliver a live, customizable dashboard and estimated a 16-week schedule that depends on timely receipt of accurate city data. Willdan quoted a fee of $45,060 for water, wastewater and solid waste.

Raftelis emphasized modeling for solid-waste operations (routes, fleet, labor, disposal), a communications team to support community engagement and CIP review that complements Weslaco's ongoing impact-fee work. Raftelis quoted a fee of $130,905 for the three-utility study and described deliverables including a graphical, updatable financial model, benchmarks to area cities and recommended fee schedules.

NewGen presented a five-year, cash-needs forecasting approach aligned to the city's budget calendar and said it would work regionally for benchmarks while basing rate calculations on Weslaco's own financial and consumption data. The NewGen team proposed a schedule to deliver a draft report in August so the commission could consider utility rates during the September budget process. NewGen's fee in the presentation was roughly $91,975.

Commissioners asked all firms how they explain rate changes to the public. Presenters described multiple engagement tactics: town-hall workshops, bill inserts, targeted outreach, customer-advisory panels and public workshops. Firms said they adjust presentation style and materials for local audiences, use simpler visuals and can craft messages for social media or bill-stuffers. Several vendors said they have experience in the Rio Grande Valley and would prioritize local comparables when benchmarking rates.

Panelists also discussed affordability measures: firms outlined options including an essential-use (lifeline) consumption tier, senior or discounted rate classes, and customer-assistance programs. For solid waste, presenters described options to subsidize essential service levels or offer targeted discounts.

After scoring presentations and Q&A, commission rankings produced the lowest aggregate rank for NewGen (9), Willdan (11) and Willdan/Wilden (later listed as the third firm) at roughly 16. Staff recommended awarding the proposal to NewGen. Commissioner Farias moved to recommend NewGen as recommended by staff; a second came from Commissioner Gonzalez, and commissioners voted to approve the recommendation by voice vote.

The commission did not record individual roll-call votes during the award motion in the transcript; staff said price and proposed hours were included in evaluators' scoring. Commissioners asked staff to proceed on contract award and to coordinate next steps so a draft study would align with the city's budget timeline.

No public comments were recorded at the meeting. The city secretary had posted the special meeting notice as required by law.