July 2, 2024
Public Works
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works / City Engineer
Jeffrey Barich, PE, Senior Civil Engineer
Subject: Authorize the City Manager to Award and Execute a contract for up to $300,000 for the Storm Drainage Rate Study during the City Council’s recess.
FINANCIAL IMPACT: $300,000 is available in the Stormwater Fund 4006 (Account String 40623431-400201)
PREVIOUS COUNCIL
ACTION:
Not applicable.
STATEMENT OF THE
ISSUE:
The City Council's recess from July 3, 2024, to
September 2, 2024, necessitates authorizing the City
Manager to award and execute a contract for the Storm
Drainage Rate Study. This authorization is critical to allow work to commence.
RECOMMENDED ACTION: ADOPT a resolution granting the City Manager the authority to AWARD and EXECUTE a contract to the
consultant firm selected by a review panel of City Staff in an amount not to exceed $300,000. (Daniel Chavarria
620-5478 / Robert Armijo 620-5477 / Jeffrey Barich 412- 2009)
DISCUSSION:
The City Council will be in recess from July 3, 2024, to September 10, 2024. It is crucial to proceed with the contract award process for the Storm Drainage Rate Study during this period to allow the work to commence without further delay.
AGENDA
REPORT
July 2, 2024
In October 2023, staff released a request for proposals (RFP) for the study. By December 2023, we received proposals from four consultant firms: Harris & Associates, NBS, Raftelis, and SCI Consulting Group. Due to high workload demands, it has taken City staff longer than anticipated to thoroughly review the proposals, contact references, and reach a consensus on the preferred consultant. We are now in the final stages of this selection process and will be ready to recommend a consultant while the City Council is on recess.
Richmond has had a stormwater fee since the 1990s to comply with federal regulations for municipal separate storm sewer system operations. However, the stormwater fund is failing to meet the significant operational and capital requirements of the stormwater system, as well as the State of California’s municipal stormwater permit program requirements. The stormwater fee, unchanged for over 15 years, funds Public Works' stormwater system operations, clean water program, and municipal stormwater permits responsibilities. This fund is typically subsidized by the City’s General Fund by approximately $2M annually.
Since 1991, Richmond's stormwater fee has been $32 per single-family home and multi- family unit. This flat fee structure has led to a potential deficit in the stormwater fund, which may be depleted by FY 2025. Increasing mandates from the State and Regional Water Quality Control Board require greater investment in new stormwater infrastructure, further straining the fund's finances.
The Storm Drainage Rate Study aims to evaluate the City’s existing stormwater rates, recommend modifications to the rate structure, and propose future rates. Delaying the allocation and award process for the study could result in further project delays and inadequate public outreach efforts by the selected consultant.
Therefore, staff requests Council approval to authorize the City Manager to award the contract to the selected consultant up to the budgeted amount of $300,000 which would include any contingencies.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution