1 STAFF REPORT
DATE: May 21, 2024
TO: Justin Hess, City Manager
FROM: Ken Berkman, Public Works Director
VIA: Stephen Walker, Assistant Public Works Director – Wastewater Systems
SUBJECT: Adoption of a Resolution Approving an Agreement for Contract Operation and Maintenance of the City of Burbank Water Reclamation Plant, Industrial Waste Management Program, and Illicit Stormwater Program with Inframark, LLC; Finding of CEQA Exemption (14 CCR § 15301).
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING
A TEN-YEAR AGREEMENT BETWEEN THE CITY OF BURBANK AND INFRAMARK, LLC. FOR THE CONTRACT OPERATION AND MAINTENANCE OF THE CITY OF
BURBANK WATER RECLAMATION PLANT, INDUSTRIAL WASTE MANAGEMENT PROGRAM, AND ILLICIT STORMWATER PROGRAM. (Attachment 1)
BACKGROUND
The City of Burbank owns and operates the Burbank Water Reclamation Plant (BWRP or Plant), the Beachwood Pump Station, the Beachwood/Sparks Forcemain, and the Beachwood Pump Station Motor Control Center (collectively, the Treatment Facilities).
The City has had an agreement with Veolia Water Contract Operations, USA, Inc. (Veolia), or their predecessors-in-interest, including Suez Water Environmental Services, Inc. (SUEZ) and United Water Environmental Services , Inc., to operate the Treatment Facilities and implement the City’s Industrial Pretreatment Program (IPP) since 1990 (Contract). The IPP is a United States Environmental Protection Agency mandated program that requires the City to issue and enforce Waste Discharge Permits to s pecific industries discharging sewage to the BWRP. In 2001, the Illicit Stormwater Program (ISP) was added to the Contract, as required to comply with the Municipal Separate Storm Sewer System (MS4) Permit.
The City and Veolia entered into an initial five-year Agreement for Contract Operation and Maintenance of the Plant, Industrial Waste Management Program and Illicit Stormwater
2 Program dated February 8, 2011 . This was extended and amended by several amendments, including:
• The Five Year-Extension Agreement dated May 31, 2016; • Amendment dated December 18, 2018;
• Second Amendment dated March 8, 2021; and
• Third Amendment dated April 6, 2023, to extend the term of the Agreement to June 30, 2024, and to address the merger and incorporate the name change from SUEZ to Veolia.
As such, the existing Contract with Veolia will expire on June 30, 2024.
The Public Works Department (Public Works) acts as the contract administrator for the operation and maintenance of the BWRP. Public Works is the permittee for the BWRP’s National Pollutant Discharge Elimination System ( NPDES) Permits to operate the Plant and treat wastewater, and a second permit specifically related to recycled water.
The Plant produces recycled water for distribution to customers by Burbank Water and Power; specifically, for landscape irrigation, industrial uses, and construction water. Any remaining flow is discharged to the Burbank Western Channel, a tributary of the Los Angeles River, for other beneficial uses, under NPDES Permit regulations.
Since 2020, Public Works staff ha ve been planning to conduct a competitive selection process to ensure that Burbank residents and businesses have the best contract operator for the Treatment Facilities to provide high-quality reclaimed wastewater services, and that ratepayers receive the best possible value. The competitive selection process was delayed due the COVID-19 pandemic, which made it difficult to provide a fair and robust process (including site walks and consultant interviews), and to properly determine which firm would be the most qualified to operate the Treatment Facilities for the next ten years.
On August 14, 2023, a n advance notice was published through Integrated Marketing Systems/Dodge Construction Network to inform potential contract operators about the upcoming Request for Proposals (RFP) and to provide a brief scope of work and schedule.
DISCUSSION
Public Works prepared the RFP, which was issued by the Finance Department’s Procurement Section on PlanetBids on November 30, 2023, as RFP No. PW-2023-001 for the “Contract Operation and Maintenance of the Burbank Water Reclamation Plant and Associated Fac ilities, Industrial Wastewater Pretreatment Program, and Illicit Stormwater Program.” As part of the RFP, p roposers were asked to submit a proposal that addresses how they would provide operation and maintenance services as well as a list of team members on staff or to be assembled on staff with the qualifications and licenses before the start of operations and services.
Three proposals were submitted in compliance with the RFP requirements by Inframark, LLC (Inframark), PERC Water Corporation, and Veolia on January 25, 2024, which were evaluated and ranked by the Consultant Selection Committee based on the selection 3 evaluation criteria set forth in the RFP. Interviews were conducted on February 21, 2024.
The Committee determined that the top -ranked firm was Inframark, and their cost proposal was subsequently reviewed prior to commencing the negotiation process. On March 27, 2024, the City notified the proposers of the City’s intent to proceed with Inframark.
Inframark has more than 40 years of exper ience in the operation, maintenance, and management of water and wastewater facilities in North America. It is one of the largest firms providing such services in the United States, and it has multiple contracts throughout California. The company currently provide services to over 400 clients in 21 states.
Inframark has approximately 3,000 employees and is widely known as a national environmental leader.
Inframark will operate and mainta in the City's Treatment Facilities, implement , and manage the City's IPP and ISP and provide all services described in the Agreement (Attachment 2). They will provide a minimum of 25 full -time technical personnel with appropriate education, training, certification, and experience to undertake all responsibilities under this agreement.
The contracted services include, but are not limited to:
• Complete operation, maintenance, and management of the City’s Treatment Facilities;
• Operation of the BWRP laboratory;
• Administration and implementation of the City’s IPP; and • Administration and implementation of the City’s ISP.
Operation, Maintenance, and Management of the City’s Treatment Facilities Operators will manage complex biological, chemical and physical processes at the Plant that currently treats approximately seven million gallons of wastewater each day and produces recycled water for use around the City. This operation requires monitoring and adjusting the biological conditions necessary to remove contaminants in the sewage, applying adequate levels of chemical add itives to eliminate pathogens, and maintaining the mechanical and electrical equipment that supports the treatment process. Further, Inframark will complete capital improvement projects at the Treatment Facilities, as approved by the City within the annual budget process, and will ensure full compliance with all laws, permits, and other regulatory requirements.
Operation of the BWRP laboratory
Inframark will perform all tasks relative to sampling, testing, and analyzing wastewater and effluent samples required for plant process control and analysis , IPP and ISP administration, and samples required by contract with the City of Los Angeles. Inframark will also handle all reporting requirements per the NPDES Permit and other regulatory requirements, and documentation and maintenance of all records required and maintaining the necessary certification and registration to assure that the BWRP laboratory is in conformance with Environmental Laboratory Accreditation Program requirements.
4 Administration and Implementation of the City’s IPP
In addition to operation of the Treatment Facilities, Inframark will implement the City’s IPP. They will be responsible for regulating the wastewater discharge from over 650 industrial users within City li mits. They will verify that all information in Industrial Waste Discharge Permit application s is complete and accurate , identify appropriate industrial classifications and draft site-specific permits for approval by the City, perform compliance and follow-up inspections, conduct water quality sampling of permittee discharges, assist in administering the progressive enforcement actions against violators of permit requirements, monitor wastewater flow s to and from the City of Los Angeles, maintain required records, and prepare required regulatory reports.
Administration and Implementation of the City’s ISP
The purpose of the ISP is to coordinate the inspection, reporting, and tracking of all potential illicit connections and illicit discharges (IC/ID) to the stormwater system.
Inframark will implement and administer the ISP in accordance with the NPDES Permit , the Burbank Municipal Code, and all other permit and regulatory requirements. The ISP Coordinator will work in conjunction with the IPP Inspectors to follow up on all reports of IC/ID and assist the City in administering enforcement actions against all violators to ensure that illicit discharges and improper disposal into the storm drain system are eliminated.
The term of the new contract will be for an initial period of 10 years commencing on July 1, 2024 and ending on June 30, 2034. In addition, the City shall have the option of administratively renewing the Contract for one additional term of five years.
ENVIRONMENTAL REVIEW
Staff recommends that Council find that approval of this Agreement is categor ically exempt under the California Environmental Quality Act (CEQA) § 15301, which exempts the operation, repair, maintenance, and minor alteration of existing public structures and facilities (including publicly owned utilities used to provide sewerage services) that involve negligible or no expansion of existing or former use. This project includes the contract operation and maintenance of the Treatment Facilities and administration of the City’s IPP and ISP, and there are no exceptions or unique circumstances that apply that would affect the application of this exemption . Language memorializing such a finding is included in the proposed resolution.
FISCAL IMPACT
The proposed Agreement with Inframark will not have a fiscal impact on the City’s General Fund. The budget for the first year, Fiscal Year 2024/25, includes approximately $4.78M in base charges for labor, and allowances for pass-through costs for process chemicals, facility maintenance, and outside laboratory services . The total cost for the first of ten years is $5,873,844, and the breakdown is summarized below.
5 Notably, the proposed base charges are approximately $108,000 less than the cost would be if the existing agreement with the current contractor was extended for one additional year and the contract formula for annual increases in the existing agreement was used to calculate the costs of such extension.
The future base charges for labor will be determined using the annual cost adjustment formula specified in the Agreement, which is tied to Consumer Price Index and Employment Cost Index metrics , which has had an average annual adjustment percentage over the last ten years of approximately 3%. In addition, capital improvement costs for the Treatment Facilities and materials, supplies, and services costs will be negotiated on an annual basis.
Sufficient funding for the agreement is available in Fund 494, Water Reclamation and Sewer Fund.
CONCLUSION
Staff recommends that Council , by resolution, approve the Agreement for Contract Operation and Maintenance of the City of Burbank Water Reclamation Plant, IPP, and ISP with Inframark, LLC, and find the approval of the agreement categorically exempt from CEQA.
ATTACHMENT
Attachment 1 – Resolution
Attachment 2 – Agreement
Activity Base
Charges
Pass-Through Costs
Sum
Chemicals Facility
Maintenance
Outside
Laboratory
Plant
Operations &
Maintenance
$3,761,170 $526,704 $312,993 --- $4,600,867
Industrial
Pretreatment
Program
$1,023,830 --- --- $249,147 $1,272,977
TOTAL $5,873,844