DATE: APRIL 23, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: ADRIANA ROBLES, CITY ENGINEER
TITLE: AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN WALLACE GROUP AND THE CITY OF SALINAS RECOMMENDED MOTION:
A motion to approve a Resolution:
Approving a Amendment No. 2 to the Professional Services Agreement between the City of Salinas and Wallace Group for additional scope with revised term and fee schedule for the Wastewater Rate Study for a not-to-exceed amount of $63,090 and authorizing the Mayor to enter into the amendment on behalf of the City; and Approving the transfers of $30,000 from 1000.50.5120-63.5400 and $50,000 from 1000.50.5125-63.6010 to CIP 9008 (5800.50.9008-63.5400).
EXECUTIVE SUMMARY:
This Report presents an amendment to the Professional Services Agreement with Wallace Group to expand the scope of work to include a wastewater rate study to align service fees with the Council-approved Sanitary Sewer Master Plan Update and transferring necessary funds to allow the study to proceed.
BACKGROUND:
The City of Salinas owns and operates a municipal sanitary sewer collection system for the residents and businesses within its service area. The existing system is maintained through the collection of service fees administered by Monterey One Water.
On February 16th, 2021, City Council approved Resolution No. 22051 approving the Agreement for Professional Services with Wallace Group for the Sanitary Sewer Master Plan (SSMP) Update in the amount of $588,249. On October 18, 2022, City Council approved Resolution No. 22500 approving the Revised and Restated Professional Services Agreement between the City of Salinas and Wallace Group for an amended amount of $633,249.
On May 2, 2023, City Council adopted the Sanitary Sewer Master Plan Update through Resolution No. 22648. The SSMP Update identified over $66 million of existing system improvements and over $38 million of existing lift station improvements that the City is responsible to undertake. In order to have the necessary funds to make the needed improvements staff is proposing an update to the sanitary sewer (wastewater) service fees. In early 2024, Wallace Group, working with DTA, provided a nexus study to update the Sanitary Sewer Development Impact Fee. The development impact fees account only for impacts from future development on the existing system leaving the remainder of the improvements to be paid by the City.
City staff requested Wallace Group to again work with DTA to complete a Rate Study of the sanitary sewer service fees as part of their contract. The expanded work tasks include development of comprehensive financial planning and a rate model for wastewater services, review of the Rate Study for its compliance with the Sanitary Sewer Master Plan Update and City goals. The additional scope represents a not-to-exceed increase of $63,009 to the original Agreement and an increase of 6 months to the original term per Wallace Group’s proposal dated March 21, 2024.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed project and agreement meet the City Council’s Strategic Plan Goals of Infrastructure and Environmental Sustainability and Economic Development.
DEPARTMENTAL COORDINATION:
This project has relied on coordination between the Wastewater, GIS, Development, and Water, Waste and Energy divisions in Public Works.
FISCAL AND SUSTAINABILITY IMPACT:
The total increased cost for the additional scope of work Amendment No. 2 to the Amended and Restated Professional Services Agreement is $63,090.
Funding for Amendment No. 2 to the Amended and Restated Professional Services Agreement is contingent upon the transfers of $30,000 from 1000.50.5120-63.5400 and $50,000 from 1000.50.5125-63.6010 to CIP 9008 (5800.50.9008-63.5400).
ATTACHMENTS:
Resolution
Amendment No. 2 to Agreement for Professional Services for Environmental Consultants between Wallace Group and City of Salinas Page | 3
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