HomeMy WebLinkAbout25C - AGMT - SEWER AND WATER FINANCIAL PLANREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 4, 2013
TITLE:
AMENDMENT TO AGREEMENT WITH
BLACK & VEATCH CORPORATION FOR
PREPARATION OF A SANITARY SEWER
AND WATER FINANCIAL PLAN
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1 sc Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to
execute an amendment to an agreement with Black & Veatch Corporation, subject to
nonsubstantive changes approved by the City Manager and City Attorney, in an amount not to
exceed $150,000, for the preparation of the City's Sanitary Sewer and Water Financial Plan.
DISCUSSION
On September 19, 2011, the City Council approved an agreement with Black and Veatch
Corporation (B&V) for consultant services to provide a Sanitary Sewer and Water Financial Plan.
The report will provide an assessment of the City's water and sanitary sewer system. It will
include, among other items, a Rehabilitation and Replacement schedule, a Capital Asset
Management & Prioritization System (CAMPS) model, and a rate analysis and model.
Over the course of the past year,
to move forward with the water
possible sanitary sewer transfer
City. Any change of ownership
Enterprise. As such, it is
managerially, and operationally.
the City has identified several issues that need resolution in order
and sewer study. One significant concern is the potential of a
between the Orange County Sanitation District (OCSD) and the
would involve a substantial change in costs to the City's Sewer
ecessary to properly evaluate potential impacts financially,
As a result of the infrastructure analysis, it has been determined that the City needs to develop a
program to evaluate all water and sewer infrastructure on an annual basis to leverage the abilities
of the CAMPS model. This assessment program will be used, in conjunction with the CAMPS
model, to identify, categorize, evaluate, and propose whether rehabilitation or replacement is
necessary for both the water and sewer systems. This model will be used to refine the Capital
Improvement Program.
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RECOMMENDED ACTION
Amendment to an Agreement with Black & Veatch Corporation for
Preparation of a Sanitary Sewer and Water Financial Plan
February 4, 2013
Page 2
Staff recommends that the agreement with Black & Veatch Corporation be amended in order to
complete the water and sanitary sewer system study. B&V has performed well and has been
responsive to all City requests. In addition, B&V has a demonstrated successful record of assisting
utilities through the complex Proposition 218 requirements. They have recently worked with the
Cities of South Gate, Downey, San Juan Capistrano, Oxnard, and Long Beach on water and
wastewater financial analyses. Over the course of the last five years, B&V has conducted more
than 30 such rate studies in accordance with Proposition 218 requirements.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funds are available in the Water Administrative and Engineering Fund (Account 06017645-62300).
Raul Godinez II
Executive Director
Public Works Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez- f
Executive Director
Finance & Management Services Agency
RG: RB
Exhibit: 1. Consultant Contract Agreement
2. Black & Veatch Proposal
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AMENDMENT TO AGREEMENT
THIS AMENDMENT TO AGREEMENT is entered into on February 4, 2013, by and between Black and
Veatch Management Consulting, a California corporation ("Contractor") and the City of Santa Ana, a charter city
and municipal corporation organized and existing under the Constitution and laws of the State of California
("City" ).
RECITALS:
A. The parties entered into Agreement A-2011-238, dated October 17, 2011, (hereinafter "said Agreement")
by which Contractor has provided financial and engineering services required to prepare a sanitary sewer
and water utility financial plan.
B. In accordance with the terms and conditions of said Agreement, the parties wish to i.) amend the Scope of
Services to provide additional services related to the capital repair and replacement needs survey,
including separate studies and resulting financial support for the water and sewer utilities, ii.) increase
compensation to pay for the additional services, and iii.) extend the term of said Agreement.
WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and
conditions of said Agreement, except those amended in this Amendment to Agreement, the parties agree as
follows:
Section 1, SCOPE OF SERVICES, shall be deleted in its entirety and replaced with the following:
"Consultant shall provide financial and engineering evaluation services to prepare a sanitary sewer and
water utility financial plan for the City, as set forth in Exhibit A, attached to said Agreement. Said
financial plan shall include separate analysis of both water and sewer utility services. Additionally,
Consultant shall 1) update the CAMPS model, provide preliminary condition assessments for currently
planned water and sewer projects, and 2) assist the City to update and implement the water and sewer rate
studis, as set forth in Exhibit A-1, attached hereto and incorporated by this reference."
2. Section 3.a., COMPENSATION, shall be amended to add $100,000.00 to pay for the additional study
services, as set forth in Exhibit A-1. A $50,000.00 contingency shall be available for additional services related
to the rate study or implementation, to be authorized at the written request of the Executive Director of Public
Works. The total sum to be expended pursuant to said Agreement shall not exceed $380,000, during the term of
said Agreement.
3. Section 4, TERM, shall be amended to extend the termination date to December 31, 2013.
4. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and
effect.
///Exhibit 1
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IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Agreement on the date
and year first written above.
ATTEST:
CITY OF SANTA ANA
MARIA D. HUIZAR PAUL M. WALTERS
Clerk of the Council City Manager
APPROVED AS TO FORM:
Laura Sheedy
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
RAUL GODINEZ, II
Executive Director - PWA
BLACK AND VEATCH
JOHN R. KERSTEN
Vice President
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EXHIBIT A-1
ADDENDUM REQUEST
JANUARY 10, 2013
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BLACK&VEATCH
z Building a world of difference?
January 27, 2013
City of Santa Ana
Attn: Brian Ige
PWA - Water Division
220 S. Daisy Ave. M-85
Santa Ana, CA 92703
Dear Mr. Ige:
BLACK & VEATCH CORPORATION
800 WILSHIRE BLVD., SUITE 600, LOS ANGELES, CA 90017
+1407-408-1885 I KERSTENIR@BV.com
Per your request, Black & Veatch is pleased to submit to the City of Santa Ana (City) the
following scope of work and fee estimate for the additional work items.
Task 1 - Capital Asset Repair & Replacement (R&R) Needs
Under this task, Black & Veatch will perform the following subtasks:
• Upgrade the Capital Asset Management & Prioritization System (CAMPS) model.
The intent of the upgrade is to the CAMPS model to allow City staff to update asset
conditions and project high-level R&R cost schedules. As part of the model upgrade,
a GIS element, using the City's existing Geographic Information System (GIS) data
will be incorporated. The GIS module will allow the City to update asset conditions
that can then be transferred to the new Cityworks system once the latter becomes
operational.
Provide preliminary condition assessments for planned Water and Sewer R&R
projects. Black & Veatch understands that the City has two large capital projects
planned that may require Black & Veatch's assistance. The first project is the 16"
water transmission main repair/replacement project along Bristol Street; the
second project involves repair/replacement of approximately 371 sewer sites that
have a NASSCO rating of 5. For the proposed projects, Black & Veatch will work with
City staff to develop a systematic process for conducting and evaluating asset
condition. A total of 3 workshops will be held with City staff to develop the
methodology and process for executing an asset management program. As part of
the outcomes of the workshops, Black & Veatch may provide preliminary break
frequency analysis to help refine condition assessment of these lines. Results of such
an analysis would be incorporated in the CAMPS model as well.
Task 2 - Financial Support Services
The City has experienced many delays and identified several potential issues with respect
to moving forward on its planned water and sewer rate adjustments. As a result, under this
task, Black & Veatch proposes to perform the following subtasks:
• Update the water and sewer rate study, Specifically, Black & Veatch will update
the study to reflect fiscal year (FY) 11/12 actuals and preliminary FY 12/13 budget
EXHIBIT 2
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ADDENDUM REQUEST PAGE 2
JANUARY 27, 2013
figures. Projections for necessary revenue adjustments will also be updated as
necessary.
• Provide recommendations on cost recovery mechanisms for capital projects. For
this subtask, Black & Veatch will work with City staff to help development funding
mechanisms for specifically identified needs, such as sewer lateral repairs. As
needed, we will work with Finance and City staff to outline any business processes
that may be necessary to implement any recommendations.
• Assist City with rate implementations. For this subtask, Black & Veatch will work
with City staff to help with implementation of the recommendations from the rate
studies, as well as other identified issues. Such assistance may include, but is not
limited to, development of policies for reserve levels, external department cost
allocations, and level of service agreements.
• Assist City with Asset Transfers. Black & Veatch understands that the City is in
discussion with Orange County Sanitation District (OCSD) regarding the transfer of
certain sewer mains to the City. Under this subtask, Black & Veatch will work with
City staff to help determine the impacts of such a transfer.
Task 3 - Meetings and Reports
This task covers necessary meetings and reports that are generated through the
completion of Tasks 1 and 2.
Based on our understanding of the City's request, we estimate that the above additional
items may be performed for a not-to-exceed fee of $149,960. A summary of the level of
effort and expenses for these tasks is provided in the table below.
Project Senior Project Total
description Manager QA/QC Leads Analyst Cost
Task 1. Capital Asset R&R Needs 80 4 200 230 $98,280
Task2. Financial Support Services 60 2 100 $32,240
Task 3. Meetings & Reports 20 18 28 $13,440
Total Hours 160 6 218 358 $143,960
Direct Expenses $6,000
.Hourly Rate $245 1 $270 1 $210 1$145-$1851
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ADDENDUM REQUEST PAGE 3
JANUARY 27, 2013
We are pleased to proceed with this engagement and look forward to working with the
City. If you have any questions, please contact our Project Manager for this engagement, Ms.
Ann Bui at (949) 302-6017 (BuiATObv.com).
Yours very truly,
BLACK & VEATCH CORPORATION.
ohn R. Kersten
Vice President, Black & Veatch Management Consulting
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