City Council
Report
City Council Meeting: June 25, 2024
Agenda Item: 5.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Request for Proposal to Stantec Consulting Services, Inc. to Provide Professional Services for the Development of One Water Master Plan Recommended Action
Staff recommends that the City Council:
1. Award RFP #401 to Stantec Consulting Services, Inc., to provide professional services for the development of a One Water Master Plan for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with Stantec Consulting Services, Inc., in an amount not to exceed $1,900,000 for a five-year term with future funding contingent on Council budget approval;
3. Adopt a finding of no possibility of significant effects pursuant to Section 15061(b)(3) of the California Environmental Quality Act; and
4. Authorize budget amendments as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).
Summary
The Water Resources Division of the Public Works Department operates and maintains drinking water, wastewater collection, and recycled water services to residents, commercial, and institutional customers throughout the City. The City currently services over 18,000 metered customers with a current average annual water demand of approximately 11,600 acre-feet per year (AFY). Since the 2018 update to the Sustainable Water Master Plan (SWMP), the City has made great progress towards reducing its reliance on imported water supplies and increasing local water supplies to approximately 85%. The 99% water self-sufficiency goal established in the 2018 SWMP was impacted by the COVID-19 pandemic that resulted in water resiliency projects being cancelled and insufficient resources to advance the City’s water 2 of 7
conservation program. Staff is proposing to update the 2018 SWMP with a comprehensive One Water Master Plan to develop water supply alternatives and assess the feasibility of achieving 99% water self-sufficiency. Staff recommends that RFP #401 be awarded to Stantec Consulting Services Inc. and that an agreement be negotiated and executed to prepare the One Water Master Plan.
Discussion
In 2011, the Council provided direction to seek pathways towards becoming water selfsufficient utilizing local water resources. This resulted in the first iteration of the Sustainable Water Master Plan produced in 2014 and updated in 2018. In 2018, staff refined the pathway to achieve water self-sufficiency (sourcing nearly 99% of the City’s water supply through local resources) by 2023 through a combination of demand reduction, water conservation and efficiency programs, and the addition of local water supplies. The major benefits of the City’s goal to achieve water self-sufficiency includes:
• Long-term cost benefits to ratepayers by maximizing local water resources. • Provide a more sustainable and drought-resilient water supply through a diversified water supply portfolio.
• Reduce the City’s water supply energy footprint through conservation and locally sourced water supplies.
The 2018 SWMP included the following key components to achieve water selfsufficiency:
• Component 1 – Continue and increase water conservation efforts to permanently reduce water demand.
• Component 2 – Develop sustainable and drought resilient alternative water supplies.
• Component 3 – Expand local groundwater production within sustainable yield limits.
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After Council adoption, staff began implementing various projects from the 2018 SWMP.
Great progress has been made to reduce the City’s reliance on imported water supplies including completion of key projects such as the Sustainable Water Infrastructure Project and near completion of the Olympic Well Field Restoration Project and Arcadia Water Treatment Plant Expansion Project (completion scheduled for late summer 2024). Staff estimates that approximately 85% of the City’s water supply would be sourced locally by the end of 2024. The 99% water self-sufficiency goal established in the 2018 SWMP was impacted by the COVID-19 pandemic that resulted in cancelled water resiliency projects and insufficient resources to advance the City’s water conservation program. Water resiliency projects such as the addition of new groundwater production and recharge wells, and the expansion of the City’s recycled water distribution network were cancelled and impacted the City’s water self-sufficiency goal by over 10%. Additionally, citywide restructuring during the pandemic resulted in reducing the City’s water conservation team from 4 full time employees (FTE) to 2 FTE.
Due to limited resources, only existing conservation measures were maintained, and additional water conservation programs identified in the 2018 SWMP were not progressed. Advancing the City’s water conservation program alone accounted for roughly 5% of the 2018 water self-sufficiency goal.
As water self-sufficiency is a key element of the Sustainable City Plan and Climate Action and Adaptation Plan, staff is updating the 2018 SWMP in the post pandemic era with a comprehensive One Water Master Plan. The One Water Master Plan will synthesize information from recently completed master planning efforts (2022 Groundwater Sustainability Plan, 2023 Domestic Water and Sewer Master Plan, 2023 Recycled Water Master Plan, and 2024 Water Conservation Master Plan), consider recent regulatory advancements in protection of drinking water supplies and expand opportunities for potable reuse, develop a gap analysis from the 2018 SWMP water selfsufficiency goals, identify future supply alternatives from local and regional opportunities, assess the feasibility of achieving water self-sufficiency, and develop recommended alternatives for implementation.
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The One Water Master Plan will also consider two major developments in the City since the 2018 SWMP was adopted. First, the California Department of Housing and Community Development’s Regional Housing Needs Allocation required the City to plan for 13,000 additional housing units with a goal to achieve approximately 9,000 new housing units over the next 8 years. The City adopted the 6 th Cycle Housing Element
(2021 to 2029) that included a suitable site inventory that identified hundreds of sites with high potential for becoming future housing sites. These new housing units, once completed, may likely increase potable water demand by approximately 1,400 AFY as the majority of the development will be affordable housing. Under the City’s Water Neutrality Ordinance, affordable housing projects are only required to meet water offset requirements for increased water demand at the property at a ratio of 0.5 to 1. Second, the Santa Monica Airport and Airport Business Park are anticipated to be redeveloped into a large park by 2030. Potential increased potable and recycled water demands for both the airport and airport business park are not known at this time but is anticipated to increase from its current use to support redevelopment into a park.
On February 5, 2024 a Request for Proposal (RFP) was issued for Professional Engineering Services for the 2024 One Water Master Plan. 58 vendors downloaded the RFP and 11 proposals were received. Stantec Consulting Services Inc. was chosen as the best qualified firm for these services.
Vendor Selection
Bidder Recommendation
Best Qualified Firm Stantec Consulting Services, Inc.
Evaluation Criteria Training/credentials/experience, competence/skill, capacity/ability to perform services promptly, sufficiency of financial/other resources, character/reputation, ability to provide future services as needed and price.
Municipal Code SMMC 2.24.190
RFP Data
Date Posted Posted On Advertise In (City
Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
02/05/2024 City’s Online
Bidding Site
Santa Monica
Daily Press
58 03/22/2024
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Justification to Award
The proposals were reviewed by a selection panel consisting of staff from the Public Works Department – Water Resources and Engineering Services Divisions. The proposal evaluations were based on project understanding/workplan (demonstrated knowledge of inter-workings of the City’s water/wastewater infrastructure and recent, relevant experience in obtaining Federal grants to advance local water supply projects), previous experience (having delivered similar efforts for nearby cities and water districts), ability to deliver, quality of product, cost, and compliance with City requirements. Based on the evaluation criteria and criteria in SMMC 2.24.190, staff recommends Stantec as the best qualified firm to prepare the One Water Master Plan based on their extensive and prior experience in developing similar master plans for other California municipalities and agencies including the Metropolitan Water District of Southern California, City of Los Angeles, City of San Diego, and Moulton Niguel Water District.
Past Council Actions
Meeting Date Description
11/27/18
(Attachment A)
Sustainable Water Master Plan Update and Pathway to Water SelfSufficiency 3/14/23
(Attachment B)
Adoption of Resolutions Authorizing the Application for Grant Funds from the California State Department of Water Resources Urban Drought Relief Grant and the United States and the Bureau of Reclamation’s WaterSMART: Water Recycling and Desalination Planning Grant Program
Environmental Review
Submittals Received
Arcadis U.S., Inc. $1,099,197 Stantec Consulting
Services, Inc. $1,159,480
Carollo Engineers $1,199,998 Woodard and
Curran $1,376,913
Jacobs $1,989,640
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Preparation of the One Water Master Plan is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The plan is covered by the Common Sense Exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The intent of the One Water Master Plan is to identify, develop, and evaluate the feasibility of achieving water self-sufficiency for the City.
Therefore, it can be seen with certainty that the transfer of implementation for the CCW application process would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Financial Impacts and Budget Actions
Staff has secured up to $961,033 in grant funding from the United States Bureau of Reclamation under the WaterSMART Water Recycling and Desalination Planning Grant Program. Staff seeks authority to appropriate funds for the required 50% local match.
Approval of the recommended actions requires the following budget amendments.
FY 2024-2025 Grant Budget Amendment
Establish Revenue Budget Appropriate Funds
Account Number(s) Amount Account Number(s) Amount
20500008.406100 $961,033 C2009020.689000 $61,033
Total $961,033 Total $61,033
Funds of $900,000 from the WaterSMART Water Recycling and Desalination Planning Grant are included in the FY 2024-26 Proposed Biennial Capital Improvement Program Budget. Staff requests that the variance of the grant award is appropriated to C2009020.689000.
FY 2024-2025 Budget Appropriation
Release Fund Balance Appropriate Funds
Fund Amount Account Number(s) Amount
Water Fund (50) $938,967 C5009020.689000 $938,967
Total $938,967 Total $938,967
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If renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council budget approval.
Staff seeks authority to approve funding from the Miscellaneous Grant Fund and the Water Fund to award a professional services agreement with Stantec Consulting Services, Inc. to prepare the City’s One Water Master Plan.
Professional Services Agreement Request
FY 2024-25 Budget
Request Amount CIP Account # Total Contract Amount
$961,033 C2009020.689000 $961,033
$938,967 C5009020.689000 $938,967
$1,900,000 Total $1,900,000
Prepared By: Alex Waite, Process Engineer
Approved Forwarded to Council
Attachments:
A. Staff Report - 2018 Sustainable Water Master Plan Update (Web Link) B. Resolution to Authorize Application for Grant Funds with the United States Bureau of Reclamation (Web Link)
C. Oaks Initiative Form - Stantec
D. Levine Act Disclosure Form - Stantec