Sewer Rate Study Contr
AGENDA DATE: June 21, 2016 ITEM NO. D.1 AGENDA SUMMARY EUREKA CITY COUNCIL
TITLE:
City of Eureka Water/Sewer Rate Study Contract Award
DEPARTMENT:
Public Works
PREPARED BY:
Brian Gerving, Director of Public Works
PRESENTED FOR:
☒Action
☐Information only
☐Discussion
RECOMMENDATION Authorize staff to negotiate and execute a professional services agreement with NBS for completion of the City's Water and Sewer Rate Study in an amount not to exceed $63,000, which includes a contingency of approximately 10%. FISCAL IMPACT ☐No Fiscal Impact
☒Included in Budget
☐Additional Appropriation
COUNCIL GOALS/STRATEGIC VISION
Financially sound city providing effective services
DISCUSSION The Capital Improvement Program 2016 adopted by Council earlier this year forecasts the need to spend at least $6.5M and $14.3M over the next five years on water and wastewater infrastructure projects, respectively. These figures do not include other potential upgrades that may be required at the Elk River Waste Water Treatment Facility (WWTF) as a result of new elements of the WWTF National Pollutant Discharge Elimination System (NPDES) permit renewal, which is currently being processed by the North Coast Regional Water Quality Control Board. Staff believes it is prudent, whenever possible, to fund infrastructure projects on a “pay as you go” basis, as opposed to financing them through additional debt issuances. The Water and Wastewater Funds are enterprise funds, which means that revenues from water and sewer rates must be used to fund operational and capital costs associated with providing these services.
AGENDA DATE: June 21, 2016 ITEM NO. D.1
California law requires that a water and sewer rate study must be performed to ensure that water and sewer rates are tied appropriately to these operational and capital costs. The City last performed a rate study in 2009, with rates phased in over the five year period from Fiscal Years 2010/11 to 2014/15. Staff believes it is necessary to retain a consultant to perform a rate study that will help determine whether and how rates should be adjusted to cover costs into the future. The City of Eureka and Humboldt Community Services District (HCSD) have unique partnerships in water distribution, wastewater collection, and wastewater treatment. Because of this relationship between the City and HCSD, staff believes it is appropriate to partner with HCSD on this rate study. As some information between HCSD and the City is common, both agencies should see an overall reduction in the cost of the study. At its April 12, 2016, the HCSD Board voted to partner with the City on a water and sewer rate study and execute an agreement to that effect. The Eureka City Council approved the agreement on April 19, 2016. A request for proposals (RFP) was distributed, seeking qualified consultants to assist the with the rate study. The City received six (6) proposals. Six City staff and two HCSD staff independently reviewed and scored the proposals based on a preset evaluation matrix before cost proposals were examined. A firm from Temecula California, NBS was selected as the top proposal. Cost proposals for the top two firms were examined. The bid from NBS was within two hundred dollars of the second place proposal. The estimated cost of the combined City/HCSD project was $103,000. That total was split by task between the agencies resulting in a split of $55,360 City, and $47,578 HCSD. A table of the costs by task and the agency split is attached. References were checked and all came back with very positive comments. Staff is seeking Council consent to enter into a contract with NBS for the amount of $55,360 and approval for an additional contingency of approximately 10% for a total approved expenditure of $63,000. The consultant engagement is expected to last approximately six months. REVIEWED AND APPROVED BY:
☐City Attorney ☐City Clerk/Information Services ☐Development Services ☐Finance ☐Fire ☐Parks and Recreation ☐Personnel ☐Police ☐Public Works
ATTACHMENTS: 1. Project cost allocation by task and agency
TITLE:
City of Eureka Water/Sewer Rate Study Contract Award
DEPARTMENT:
Public Works
PREPARED BY:
Brian Gerving, Director of Public Works
PRESENTED FOR:
☒Action
☐Information only
☐Discussion
RECOMMENDATION Authorize staff to negotiate and execute a professional services agreement with NBS for completion of the City's Water and Sewer Rate Study in an amount not to exceed $63,000, which includes a contingency of approximately 10%. FISCAL IMPACT ☐No Fiscal Impact
☒Included in Budget
☐Additional Appropriation
COUNCIL GOALS/STRATEGIC VISION
Financially sound city providing effective services
DISCUSSION The Capital Improvement Program 2016 adopted by Council earlier this year forecasts the need to spend at least $6.5M and $14.3M over the next five years on water and wastewater infrastructure projects, respectively. These figures do not include other potential upgrades that may be required at the Elk River Waste Water Treatment Facility (WWTF) as a result of new elements of the WWTF National Pollutant Discharge Elimination System (NPDES) permit renewal, which is currently being processed by the North Coast Regional Water Quality Control Board. Staff believes it is prudent, whenever possible, to fund infrastructure projects on a “pay as you go” basis, as opposed to financing them through additional debt issuances. The Water and Wastewater Funds are enterprise funds, which means that revenues from water and sewer rates must be used to fund operational and capital costs associated with providing these services.
AGENDA DATE: June 21, 2016 ITEM NO. D.1
California law requires that a water and sewer rate study must be performed to ensure that water and sewer rates are tied appropriately to these operational and capital costs. The City last performed a rate study in 2009, with rates phased in over the five year period from Fiscal Years 2010/11 to 2014/15. Staff believes it is necessary to retain a consultant to perform a rate study that will help determine whether and how rates should be adjusted to cover costs into the future. The City of Eureka and Humboldt Community Services District (HCSD) have unique partnerships in water distribution, wastewater collection, and wastewater treatment. Because of this relationship between the City and HCSD, staff believes it is appropriate to partner with HCSD on this rate study. As some information between HCSD and the City is common, both agencies should see an overall reduction in the cost of the study. At its April 12, 2016, the HCSD Board voted to partner with the City on a water and sewer rate study and execute an agreement to that effect. The Eureka City Council approved the agreement on April 19, 2016. A request for proposals (RFP) was distributed, seeking qualified consultants to assist the with the rate study. The City received six (6) proposals. Six City staff and two HCSD staff independently reviewed and scored the proposals based on a preset evaluation matrix before cost proposals were examined. A firm from Temecula California, NBS was selected as the top proposal. Cost proposals for the top two firms were examined. The bid from NBS was within two hundred dollars of the second place proposal. The estimated cost of the combined City/HCSD project was $103,000. That total was split by task between the agencies resulting in a split of $55,360 City, and $47,578 HCSD. A table of the costs by task and the agency split is attached. References were checked and all came back with very positive comments. Staff is seeking Council consent to enter into a contract with NBS for the amount of $55,360 and approval for an additional contingency of approximately 10% for a total approved expenditure of $63,000. The consultant engagement is expected to last approximately six months. REVIEWED AND APPROVED BY:
☐City Attorney ☐City Clerk/Information Services ☐Development Services ☐Finance ☐Fire ☐Parks and Recreation ☐Personnel ☐Police ☐Public Works
ATTACHMENTS: 1. Project cost allocation by task and agency
