November 18, 2022
Marcus Fuller, P.LS., P.E.
City Manager
City of Rialto
150 South Palm Avenue
Rialto, CA. 92376
SUBJECT: Proposal to Provide 2023 As-Needed Consulting Support and Supplemental Effluent Monetization Negotiations Services
Dear Mr. Fuller,
Dopudja & Wells Consulting (Dopudja & Wells) appreciates the opportunity to submit this proposal to the City of Rialto (City) for additional support as-needed consulting support and in further monetizing the City’s wastewater effluent.
Presented below is the proposed final design Scope of Work, estimated budget and schedule. We are proposing to proceed with the same team members that have historical knowledge of this monetization concept since it’s inception. You may recall the City maintains all ownership to its wastewater effluent discharges. Through a multi- year collaborative process, the City of Rialto and the Inland Empire Utilities Agency (IEUA) have executed a term sheet for a fifty-year agreement to purchase the right to divert the City’s effluent to IEUA’s RP-4 facility, where it will be advanced treated for injection into the local groundwater basin. Under this proposal, additional support is necessary through the completion of IEUA’s Preliminary Design Report and execution of the Final Negotiated Contract. Additionally, the preliminary efforts to monetize the remaining winter effluent have yielded some potential opportunities the City would Like Dopudja & Wells to explore further. The anticipated effort is expected to be completed in the early summer of 2023.
Scope of Work
The following tasks comprise the scope of work required for the respective projects outlined above.
Task 1. As-Needed Support
Sub-Task 1.1 Meeting Attendance, Coordination and On-Going Staff Support Dopudja & Wells will provide as-needed staff support, assistance, and any attendance at the following meetings, when requested:
Meetings for Facility/Capital Improvement Plans and Operations City Staff Meetings
City Council Meetings
Water Subcommittee Meetings
Utility Commission Meetings
Miscellaneous/Other meetings at the request of the City This effort will be charged on a time and materials hourly basis, with support to be utilized at the request of the City. Any non-utilized support will not be billed to the City.
Sub-Task 1.2 Review Reports and Statements
Dopudja & Wells may be requested to provide supplemental assistance with the review of various reports and projected budgets, as needed. Reports may include, but would not be limited to, the following:
Monthly and Annual Operations & Maintenance and Customer Service Reports Electrical Settlement Statements
Quarterly Asset Management Reports to Verify conformance with the Concession Agreement Schedules A.6.3 and B.6.3
Annual Wastewater Chemical Settlement Statement to verify conformance with the Concession Agreement Article VIII, Section 8.13, Part a.
Annual Water Chemical Settlement Statement to verify conformance with the Concession Agreement Article XIV, Section 14.13, Part a.
Sub-Task 1.3 Engineering Studies and Planning Support Services Upon request of the City Manager, Deputy City Manager or the Utilities Manager, Dopudja & Wells will conduct miscellaneous engineering studies for the City. Potential subjects include, but are not limited to, on-going hydraulic modeling, load analysis of the City’s water distribution and wastewater collection systems.
Task 1.1, 1.2 and 1.3 Deliverables: Miscellaneous reports, memoranda and documents, as required.
Sub-Task 1.4 Triennial Inspection Support Services
The most recent 2022 Triennial Inspection is being performed by the consulting firm, Arup. The City of Rialto was agreeable to using an alternate consultant for scheduling purposes, but has requested Dopudja & Wells to provide some oversight of the process and findings. Our team will shadow Arup staff and review materials provided to Arup from RWS/Veolia. We will evaluate the draft report for consistency with observations of backup materials and site visits.
Task 1.4 Deliverables: Review comments to the Draft 2022 Triennial Inspection Report.
Task 2. Lake Rialto Supplemental Survey and Geotechnical Services During the final design phase of Lake Rialto, it has become necessary to perform additional surveying and geotechnical services. The additional surveying will occur in three areas. The first is to survey the invert and top of the pipe of the effluent discharge pipeline to the Rialto Channel. The City does not have the record plans and this information is necessary to design the diversion structure. The second area is the empty lot north of the wastewater treatment plant and the access road along the Rialto Channel. This second area may become necessary if additional parking and access is necessary. This consideration came from comments from the City’s Public Works department, during the project review. If this option does not become necessary, the work will not be performed.
Some additional effort is also required to the Base Geotechnical Engineering. From the preliminary design phase through now, additional field effort was required due to necessary grading modifications to the bottom and south side of Lake Rialto. This additional effort is reflected in the current grading plans.
Task 2 Deliverables: Supplemental survey files and data. Updated Geotechnical Report.
Task 3. Supplemental Effluent Monetization Services
In order to meet the City’s desired schedule of an approved Term Sheet by September 2022, the prior scope of work had to be modified and expedited, which required additional effort and some out-of-sequence work. The Term Sheet has been fully executed by the City and IEUA, and the remaining effort is anticipated to continue through July 2023. The following tasks outline the anticipated efforts.
Sub-Task 3.1 Additional Coordination and Oversight of the IEUA Facilities Preliminary Design After the approval of the Principles of Agreement between the City and IEUA, the IEUA Preliminary Design Report (PDR) is ongoing, with anticipated completion in Spring 2023. The PDR will continue to evaluate and size the proposed diversion pump station at the City’s wastewater treatment plant (WWTP) and conveyance pipeline from the pump station to IEUA’s RP-4 treatment facility. Per the approved and fully executed Principles of Agreement, IEUA is funding these improvements. However, in exchange for this funding, the City has agreed to a fixed price per acre-foot purchase that also considers this funding. As a result, the City will have ownership or capacity interest in these facilities. As such, the City should continues to provide input into and have oversight within IEUA’s preliminary design report process. Dopudja & Wells’ team will work with the City and IEUA staff to provide input and oversight on the City’s behalf.
Task 1 Deliverables: Review comments to IEUA’s Preliminary Design Report. Project update memos and/or emails to the City of Rialto.
Assumptions: This process is anticipated to be completed in Spring 2023. Dopudja & Wells will provide regular updates to the City of Rialto’s Water Subcommittee.
Task 3.2 Evaluation of the need for a supplemental well As part of the approved and executed Principles of Agreement, IEUA has committed up to $1 million towards a supplemental well. This well was considered to facilitate the desired summer diversion of effluent, between May and October. Due to the discharge requirements under the Santa Ana River Multi-Species Habitat Conservation Plan (SAR HCP), it was anticipated that the shoulder months of May/June and September/ October could pose challenges to a full diversion. The $1 million commitment is intended to allow the City to supplement flows to meet SAR HCP requirements. Preliminary analyses have been performed but additional coordination is required with IEUA and San Bernardino Valley Municipal Water District, which is the lead agency for the SAR HCP.
Task 3.2 Deliverables: Project update memos and/or emails to the City of Rialto, as needed.
Task 3.3 Negotiation of Final Contract
In order to achieve the City’s desired schedule, the Term Sheet and preliminary negotiations needed to be expedited. The approved Term Sheet will serve as the outline for the Final Contract. Dopudja & Wells will work with IEUA staff and legal counsels for the City and IEUA throughout negotiations and approval of the Final Contract, through approval by both agencies.
Task 3.3 Deliverables: Final negotiated contract for approval by the City Council and IEUA Board of Directors.
Assumptions: This effort is anticipated to be completed by July 2023. We also anticipate the City Attorney will be working in parallel with our team during the negotiations to achieve a final contract that is recommended for approval.
Task 3.4 Exploration of Winter/Other Effluent Flow Monetization The approved Principles of Agreement is structured to allow IEUA the first opportunity to purchase any additional flows above the base 3,500 acre-feet per year amount set forth in the agreement. Any additional flows have been set for the City to receive a higher compensation over the base amount. However, the Principles of Agreement also contains provisions for the City to externally market those non-utilized flows. IEUA has initially stated they do not anticipate utilizing Rialto flows during the months of November through April but are re-evaluating their position. Dopudja & Wells has explored additional opportunities that warrant further exploration, in the event IEUA does not execute their right to obtain the optional flows. Dopudja & Wells’ team will continue to explore other opportunities to monetize any flows that IEUA does not anticipate utilizing during the term of the contract.
Task 3.4 Deliverables: Project update memos and/or emails to the City of Rialto.
Assumptions: Any negotiations of a separate agreement are not anticipated within the budget of this proposal.
Task 3.5 Project Management
Dopudja & Wells’ team will provide overall project management to ensure the project remains on budget and schedule.
Assumptions: City will be responsible for preparing, submitting, obtaining and associated cost for the necessary permits
Proposed Fee and Schedule
Table 1 below outlines the proposed fee by tasks. Due to the negotiation nature of this proposal, the fee is based on a time and materials approach. Table 2 provides the anticipated schedule breakdown for the project. The breakdown by task is an estimate of the anticipated distribution of cost. To ensure the time and materials estimate per task protects the City, budget between task may be utilized.
Table 1 - Fees for Services
Task Description Amount ($)
1 As-Needed Support $200,000
2 Lake Rialto Supplemental Survey and Geotechnical Services $35,150
3.1 Coordination and Oversight of the IEUA Facilities Preliminary Design $178,500
3.2 Evaluation of the need for a supplemental well $49,480
3.3 Negotiation of Final Contract $154,700
3.4 Exploration of Winter Effluent Flow Monetization $59,500
3.5 Project Management $51,200
Reimbursables, mileage, travel, etc. (estimated) $3,500 Total $732,030
Table 2 – Anticipated Effluent Monitization Schedule
Task/Subtask
Dec-2022 Jan-2023 Feb-2023 Mar-2023 Apr-2023 May-2023 Jun-2023 Jul-2023 Coordination and Oversight of the IEUA Preliminary Design Negotiation of Final Contract
Exploration of Winter Effluent Flow Monetization
Project Management
City and IEUA Final Contract
Notes:
Anticipated Notice to Proceed is March 2022
= Presentation to the Water Subcommittee
= Presentation to Rialto Water Subcommittee and IEUA Committee(s) = Approval by Rialto City Council and IEUA Board of Directors. Term Sheet is already fully approved.
Thank you for the opportunity to allow Dopudja & Wells to support the City of Rialto on these Exciting Projects.
Sincerely,
Dopudja & Wells Consulting
Stephen Dopudja, P.E.
President/CEO
RCE #65187