Fremont City Council Meeting: 05/09/23 07:00 PM
3300 Capitol Avenue Div/Dept: Environmental Services
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4833) DOC ID: 4833
Updated: 5/4/2023 3:05 PM by Alberto Quintanilla Page 1
TRANSITION OF ALAMEDA COUNTYWIDE CLEAN WATER PROGRAM FISCAL AGENT DUTIES - Authorization to Execute Agreement for Transition of Alameda Countywide Clean Water Program Fiscal Agent Duties from the Alameda Flood Control and Conservation District to the City of Fremont and Consent to Assignment Agreements for Eight Technical Services Contracts Contact Persons:
Name: Kathleen Cote-Guarnieri Suzanne Wolf
Title: Environmental Services Manager Community Services Director Div/Dept: Environmental Services Community Services
Phone: 510-494-4583 510-494-4329
E-Mail: [email protected] [email protected]
Executive Summary: The City of Fremont is a member agency of the Alameda Countywide Clean Water Program (Clean Water Program), which includes Alameda County, its 14 cities, and two special districts. Participating in the Clean Water Program provides the most cost-effective means for member agencies to comply with the federally mandated National Pollutant Discharge Elimination System Permit (Stormwater Permit) requirements.
The Clean Water Program relies on a member agency to act as the Fiscal Agent, whose duties include invoicing member agencies for their annual contributions, contracting for technical services on behalf of the Clean Water Program, and paying invoices. The Alameda County Flood Control and Conservation District (District) has acted as Fiscal Agent since the Program’s inception in 1991. Due to staff changes and vacancies, the District has provided notice that it will not be able to continue in the Fiscal Agent role beyond July 1, 2023.
Fremont has experienced staff and is well positioned to take on the Fiscal Agent role with negligible impact. This will ensure the Clean Water Program continues to be an effective mechanism for Fremont to meet its Stormwater Permit obligations.
Staff is recommending the City Council authorize the City Manager or her designee to execute an Agreement for the Transition of Clean Water Program Fiscal Agent Duties from the District to the City of Fremont. Staff is also recommending authorizing Execution of Consent to Assignment Agreements for eight existing technical services contracts.
Costs incurred executing Fiscal Agent duties are reimbursable by the Clean Water Program and no General Fund Impact is anticipated.
BACKGROUND: The Clean Water Program was initially established in 1991 as a mechanism for member agencies to pool and leverage resources to comply with Stormwater Permit obligations imposed and enforced by the Regional Water Quality Control Board. It is a Memorandum of Understanding (MOU) between the member agencies and the current agreement is in effect from July 1, 2012 – June 30, 2027.
The Clean Water Program itself does not have stormwater permit obligations but provides a mechanism for member agencies to fulfill their obligations, contract for technical expertise, and conduct regional compliance activities. The Clean Water Program is funded by member Council Staff Report (ID # 4833) Meeting of May 9, 2023 Updated: 5/4/2023 3:05 PM by Alberto Quintanilla Page 2 agency contributions, calculated in accordance with the formula specified in the MOU.
Having an effective Clean Water Program is critical for Fremont to meets its Stormwater Permit obligations.
The Clean Water Program relies on a member agency to act as the Fiscal Agent whose duties include invoicing member agencies for their annual contributions, contracting for technical services on behalf of the Program, and paying invoices. The Clean Water Program has an annual budget of approximately $2.5 million and the Fiscal Agent is responsible for invoicing member agencies at the beginning of each fiscal year. The Clean Water Program has eight technical service contracts and the Fiscal Agent is responsible for processing and paying the monthly invoices for these services.
The District has acted as Fiscal Agent since the Program’s inception. Historically, a District staff member has also filled the role of Program Manager. Due to staff changes and vacancies, the District provided a Notice of Relinquishment of Alameda Countywide Clean Water Program Management and Fiscal Agent Roles effective July 1, 2023.
The Clean Water Program has contracted out for Program Management Services; however, a member agency is needed to assume the Fiscal Agent duties. Fremont has experienced staff familiar with the Clean Water Program and is currently the member agency best positioned to take on the role of Fiscal Agent. This would ensure the Clean Water Program continues to effectively function for the benefit of all its member agencies. Staff is recommending Fremont commit to fulfilling the Fiscal Agent role for the duration of the existing MOU. If Fremont chooses to relinquish the Fiscal Agent role in the future, it could do so by providing written notice to the Clean Water Program Management Committee prior to December 30 and continuing to act as Fiscal Agent until June 30 of the following year.
DISCUSSION/ANALYSIS: As Fiscal Agent, the City will be the treasurer of Clean Water Program funds. In accordance with generally acceptable accounting procedures, it will be required to segregate Clean Water Program Funds from other City funds and credit the Program with any income earned on its funds. The City will be responsible for executing contracts, processing invoices in a timely manner, and maintaining a proper accounting of funds and reports of receipts and disbursements. The City is entitled to reimbursement of reasonable expenses associated with fulfilling its Fiscal Agent responsibilities. All budgeting and procurement activity will continue to be the responsibility of the Clean Water Program Management Committee, consistent with the MOU.
The existing Clean Water Program MOU already contains language allowing for a change of Fiscal Agent, so no amendment is required; however, an agreement between the City and the District is needed to address specific details regarding the transition of the Fiscal Agent duties. The parties have drafted an agreement that includes the following provisions:
• Fiscal Agent Transition - Effective July 1, 2023, the Fiscal Agent duties for the Clean Water Program will transition from the District to Fremont. • Annual Contribution Invoicing – Fremont be responsible for invoicing member agencies for their contributions consistent with the Clean Water Program MOU beginning in FY 2023/2024.
• Consultant Contracts – The existing eight Clean Water Program technical service contracts will to be assigned from the District to Fremont via Consent to Assignment Agreements executed between Fremont and the service providers.
Council Staff Report (ID # 4833) Meeting of May 9, 2023 Updated: 5/4/2023 3:05 PM by Alberto Quintanilla Page 3 • Transfer of Funds - District will transfer the Clean Water Program Funds in two fund transfers to the City. The first transfer to the City will be completed by July 30, 2023, in the amount of two hundred fifty -thousand dollars ($250,000.00). The second transfer to the City will be completed no later than November 15, 2023 in the amount of the remainder of the Program Funds held by District as prior Fiscal Agent.
The City is preparing the Consent to Assignment Agreements for the eight technical contracts previously executed by District as Fiscal Agent. The Consent to Assignment will include the following items:
• Consent to Assignment – Consent to assignment of contract from District to Fremont due to change of Clean Water Program Fiscal Agent. • Removal of Three Exhibits – Removal of the following exhibits specific to the District but not applicable to Fremont including (D) Debarment and Suspension Certification, (E) Contract Compliance Reporting Requirements, and (F) The Iran Contracting Act of 2010.
• Update of Insurance Requirements – Update of insurance requirements to comply with the City’s standard insurance levels and update of policies and certificates to reflect the City as Fiscal Agent and Assignee.
A Consent to Assignment Agreement will be developed for each of the eight technical contracts listed below.
• Applied Marine Sciences
o Term 12/08/20 – 10/31/25
o Municipal Regional Permit Compliance Services
o Not to Exceed: $3,000,000
• Larry Walker Associates
o Term 07/16/19 – 7/15/24
o Stormwater Pollution Prevention and Watershed Awareness Educational Services
o Not to Exceed: $176,000
• Larry Walker Associates
o Term 12/08/20 – 10/31/25
o Municipal Regional Permit Compliance Services
o Not to Exceed: $1,800,000
• EOA, Inc
o Term 12/15/20 – 10/31/25
o Municipal Regional Permit Compliance Services
o Not to Exceed: $300,000
• Gigantic Ideas Studio
o Term 02/02/21 – 10/31/25
o Municipal Regional Permit Compliance Services
o Not to Exceed: $1,200,000
• Horizon Water and Environmental, LLC (now Montrose)
o Term 12/15/20 – 10/31/25
Council Staff Report (ID # 4833) Meeting of May 9, 2023 Updated: 5/4/2023 3:05 PM by Alberto Quintanilla Page 4 o Municipal Regional Permit Compliance Services
o Not to Exceed: $300,000
• Earth Island Institute
o Term 07/16/19 – 07/15/24
o Stormwater Pollution Prevention and Watershed Awareness Educational Services
o Not to Exceed: $275,000
• Livermore Area Recreation and Park District (LARPD)
o Term 07/16/19 – 7/15/24
o Stormwater Pollution Prevention and Watershed Awareness Educational Services
o Not to Exceed: $95,000
Staff will be seeking to execute the Agreement to Transition Fiscal Agent Duties and all eight Consent to Assignment Agreements prior to the July 1, 2023 transition date.
FISCAL IMPACT: Fiscal Agent activities will be conducted by existing City staff and staff impacts are expected to be minimal. Activities conducted by Environmental Services staff will be covered under the existing Urban Runoff budget (Fund 123). Staff costs for activities conducted by Finance or other departments (e.g. processing invoices or contracts) are fully reimbursable by the Clean Water Program. There is no anticipated General Fund impact.
ENVIRONMENTAL REVIEW: The proposed action is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) or 15378(b)(5) and it has no possibility of a significant effect on the environment, as specified in CEQA Guidelin es Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
ATTACHMENTS: None.
RECOMMENDATION:
1. Authorize the City Manager or her designee to execute an Agreement for Transition of Clean Water Program Fiscal Agent Duties from the Alameda Flood Control and Conservation District to the City of Fremont.
2. Authorize the City Manager or her designee to execute Consent to Assignment Agreements for eight technical services contracts.