CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/25/2022
1 SUBJECT:
Approval of Second Amendment with Bartle Wells Associates for the City of Pacifica Sewer Rate Study FY2022-2027
RECOMMENDED ACTION:
Approve the Following Actions for the City of Pacifica Sewer Rate Study FY 2022-2027 (“Study”):
1. Approve Second Amendment (Attachment 1) in an Amount Not to Exceed $27,786 and Increase the Total Compensation to $93,151 to the Consultant Original Agreement for Bartle Wells Associates; and
2. Establish a new Budget Authority of $98,000, which includes 5% contingency, for the Sewer Rate Study FY2022-2027; and
3. Authorize the City Manager to execute all documents related to this project.
STAFF CONTACT:
Maria Aguilar, P.E., Plant Manager
(415) 336-4750
[email protected]
Lisa Petersen, P.E., Public Works Director
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
Every five years, the City completes a sewer rate study to determine the rate increases that are necessary to meet the Wastewater Division’s (Wastewater) operating costs, projected Capital Improvement Program (CIP) and expected yearly consumer price index increases. The previous sewer rate adoption occurred in March 2017 for Fiscal Year rate increases between 2017-2022.
A new Sewer Rate Study had to be performed to determine the new sewer service charges for the next five years from Fiscal Years 2022-2027 and the City needed to complete the Capacity Fee Study in order to update the current capacity fees. Capacity fees are the one-time fee property developers pay to connect to the City’s wastewater system and pay a fair share contribution. The City’s current fee was adopted in 1974 and has been escalated annually by inflation.
On February 20, 2020, staff sent out a Request for Proposal (RFP) for consultant services to perform the above studies and to assist staff with their professional expertise during the adoption process of the new sewer service charges for Fiscal Years 2022-2027 and update capacity fees. Five firms responded to the RFP: Bartle Wells Associates, HF&H Consultants, Pacifica City Council 2
April 25, 2022
LLC, B Consulting, NBS, and Willdan Financial Services. Their submitted proposals were reviewed and evaluated by staff from Public Works and the Finance Department. After careful review of the proposals submitted, staff concluded that Bartle Wells Associates was the best qualified consulting firm to perform the Sewer Rate and Capacity Fee Studies. On April 27, 2020, the City Manager approved the Consultant Original Agreement (Agreement) with Bartle Wells Associates (BWA) for $48,900 and estimated the project completion date for July 2021.
On September 13, 2021, City Council approved the First Amendment to the Agreement in the amount of $16,465 for the additional time spent to analyze variations in changes to the sewer CIP program costs and other budget documents. The requested Second Amendment in the amount of $27,786 is for the extended schedule/additional time spent in finalizing the Sewer Rate Study and Capacity Fee Study after additional revisions due to changes in projected sewer costs and time spent in coordinating and attending meetings leading to the adoption of the resolution stating the intention to consider updating the City’s sewer service charges during the City Council meeting on February 15, 2022. The proposed amount will also include BWA review of changes to the ordinance language for the sewer rates and capacity fees, additional meetings with City staff and additional time spent to respond to questions from the public related to the rates as well as added meeting preparation time for the sewer rate public hearing, which is now scheduled for May 9, 2022. BWA is also working with staff on other miscellaneous matters for the successful adoption of the new sewer service charges for Fiscal Years 2022-27 and the new capacity fees.
The City Manager recommends that the City Council approve the actions listed in association with this Council report including approving the Second Amendment to the BWA Agreement in an amount not to exceed $27,786, which increases the total compensation to the Consultant Original Agreement to $93,151 and establish a new budget authority of $98,000, which includes a 5% contingency.
ALTERNATIVE ACTION:
Council may choose not to approve the Second Amendment and not appropriate additional funding for the Sewer Rate Study FY 2022-2027 project. However, this will result in Sewer Service Charges for Fiscal Years 2022-2027 and Sewer Capacity Fees adoption delays and increased risk of insufficient Sewer Enterprise Fund for Wastewater operations. Therefore, staff does not recommend this alternate action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of Second Amendment and appropriation of additional funding and subsequent approval of the Sewer Rate Study FY 2022-2027 project is consistent with the following Council adopted Goals:
Stewardship of City Infrastructure and Maintaining a Safe Community: The Sewer Rate Study FY 2022-2027 project will provide sufficient funding to maintain operations and maintenance of sewer collection system, pump stations, and the Calera Creek Water Recycling Plant and the Sewer Capacity Fee Study will allow for developments to pay a fair share contirbution to Wastewater when connecting to the sewer system.
FISCAL IMPACT:
The Sewer Rate Study FY 2022-2027 project was approved in the Wastewater Capital Improvement Budget (Fund 34) for FY 2020-2021 with a Budget Authority of $50,000. On September 13, 2021, the City Council increased the Budget Authority to $72,000. With the addition of the Second Amendment in the amount of $27,786, the total compensation for BWA Pacifica City Council 3
April 25, 2022
in the amount of $93,151 and the proposed 5% contingency of $4,849, this project will exceed the Budget Authority by $26,000. As there are sufficient funds in the Wastewater Capital Improvement Budget (Fund 34), staff recommends approving the Second Amendment to the BWA Agreement in an amount not to exceed $27,786 to increase the total compensation to the Consultant Original Agreement to $93,151 and establish a new budget authority of $98,000, which includes a 5% contingency.
The proposed budget for the Sewer Rate Study FY 2022-2027 is as follows:
Budget Authority Approved by City Council on 9/13/2021 $ 72,000.00 Original Agreement (Fund 34) $ 48,900.00
First Amendment (Fund 34) $ 16,465.00
Proposed Second Amendment (Fund 34) $ 27,786.00
Total Agreement (Cost Ceiling) $ 93,151.00
Proposed Project Contingency (Approximately 5%) $ 4,849.00 Proposed New Budget Authority $ 98,000.00
Proposed Budget Authority Increase $ 26,000.00
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
2nd Amendment to Consultant Services Agreement (BWA) md (PDF)