Agenda Report
Fullerton City Council
MEETING DATE: SEPTEMBER 20, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: MEG MCWADE, PUBLIC WORKS DIRECTOR
PREPARED BY: GAR HUANG, ASSOCIATE ENGINEER
SUBJECT: WATER MASTER PLAN UPDATE, WATER RATE STUDY AND ON-CALL CONSULTANT CONTRACT AWARD
SUMMARY
Award a $829,683 professional services consultant contract to Stantec Consulting Services, Inc. (Stantec) to update the City’s Water Master Plan and prepare a Water Rate Study. Additionally, authorize ongoing on-call services to provide future staff support for advanced hydraulic modeling, system updates, etc.
RECOMMENDATION
Approve $250,000 budget appropriation from Water Fund balance to Project 53390 Water Master Plan Update (Fund 44).
Authorize City Manager, Public Works Director or designee, to execute and administer a $829,683 Professional Services Agreement with Stantec to update the City’s Water Master Plan ($665,757) and Water Rate Study ($163,926) and provide ongoing professional on-call services following completion of the Water Master Plan, in a form approved by the City Attorney.
Authorize Public Works Director, or designee, to approve any future change orders and/or contract amendments for consultant services, within approved project budget.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The FY 2022-23 CIP Budget has funding available for this contract award in Project 53390 Water Master Plan Update but will require an additional $250,000 appropriation from Water Fund balance to Project 53390 Water Master Plan Update to provide for administrative oversight and processing and contingencies. Staff attached a Budget Data Sheet for reference (Attachment 1). The agreement also provides for future on-call services funded through the annual budget process, as appropriate.
DISCUSSION
The Public Works Department (Department) plans to update the Water Master Plan, which the City last updated in 1997. The Water Master Plan serves as a planning roadmap for long-term water facilities’ capital improvement program and the future of the utility. A Water Master Plan has a typical planning horizon of 20 years. The plan will inventory the current system and its facilities, gathering information on age and condition. The document will identify future needs based on projected population, demand forecasts and other factors. Once the City has reviewed the system and identified future needs, the Master Plan will develop and prioritize future capital improvement projects. The updated Water Master Plan will help the City continue providing a reliable water supply to the City’s customers, adequate flow and pressures for fire protection and system reliability, while meeting regulatory requirements.
While the Master Plan provides information on “What to do” and “When to do it”, the Cty needs a rate to determine “How to pay for it.” The Department also plans to update the Water Rate Study to develop a multi-year (five year and ten year) financial management plan for the Water Utility as part of the planning process. The Water Rate Study will project revenues and the following costs:
operation and maintenance
capital improvement
groundwater and imported water
reserve funding
debt service
The Study will recommend specific rate structures that equitably recover the cost of service while minimizing the financial impact to ratepayers and meeting Proposition 218 and other legal requirements. The City completed its last Water Rate Study in 2019. City staff worked with a Rate Study Ad Hoc Committee to evaluate multiple alternative Capital Improvement Program (CIP) project schedules during the 2019 process and intends to follow the same process during the Water Rate Study update.
Staff selected the consultant in a two-step procurement process. Step 1: The City issued a Request for Qualification (RFQ) in February 2022. Four consultants responded and submitted Statements of Qualification (SOQ). Water Engineering staff reviewed and ranked the SOQs and invited the top three candidates to submit proposals. Step 2: The City issued a Request for Proposal (RFP, Attachment 2) to the top three candidates (Dudek, Stantec Consulting Services, Inc. and Stetson Engineering, Inc.) in June 2022. Stantec and Stetson Engineering Inc. submitted a proposal while Dudek declined to participate.
Water Engineering staff reviewed and ranked the Stantec and Stetson Engineering Inc. proposals and interviewed the project teams. Following the interviews, staff unanimously agreed that Stantec’s team presented the more comprehensive approach to the scope of services and rated Stantec Consulting Services, Inc. as the top ranked firm based on City’s needs and consultant’s understanding of the project.
Staff negotiated the total fees for Stantec’s services down to $829,683 ($665,757 for the Water Master Plan Update and $163,926 for the Water Rate Study). The fees do not include on-call services, the total cost of which shall not exceed $100,000 during the entire term of the Agreement. Water Fund will pay the fees for the project. Attachment 3 contains Stantec’s proposal for reference.
Staff expects to complete the Water Master Plan Update and Water Rate Study in Winter 2024.
Attachments:
Attachment 1 – Budget Data Sheet
Attachment 2 – Request for Proposal
Attachment 3 – Stantec Proposal
Attachment 4 – Sample Professional Services Agreement
cc: City Manager Eric J. Levitt
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