Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION APPROVING FINDINGS AND AWARDING A CONTRACT TO HDR ENGINEERING, INC. OF FOLSOM, CALIFORNIA FOR THE WASTEWATER AND STORMWATER UTILITIES COST OF SERVICE RATE STUDIES The Municipal Utilities Department (MUD) operates and maintains the City’s Wastewater collection and treatment system, and Stormwater system including compliance with the National Pollutant Discharge Elimination System Permit for each utility; and The costs for wastewater collection and treatment are paid for by wastewater utility customers in accordance with rates adopted by the City Council. Wastewater rates fund the cost to operate, maintain and replace existing collection and treatment facilities; and The current wastewater rates were established following a rate study and balloting procedure in 2019 and included five-year phased increases which ends in 2024; and The Stormwater rate was developed in 1992 for implementation of the first phase of the Clean Water Act and was not intended to fund the costs for subsequent maintenance and regulatory costs; and The Stormwater rate has not changed since first adopted in 1992 and is insufficient for funding necessary maintenance and increasing regulatory requirements; and It is necessary to complete additional rate studies to confirm appropriate funding levels for the ongoing cost to operate, maintain, and replace utility infrastructure; and On April 27, 2023, sealed proposals for Wastewater Utility and Stormwater Utility Cost of Service Rate Studies (PUR-23-027); and Proposals were evaluated based on each firm’s understanding of the work, project approach, specific experience with similar studies, qualifications of the proposed team, and the quality and clarity of the proposal; and HDR Engineering, Inc. met, or exceeded, the requirements and was found to be best qualified proposer; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
The City Council approves the findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.
These findings include:
The Wastewater and Stormwater Utilities are Enterprise Funds. Operation and maintenance activities for each utility are supported by the specific utility ratepayers and rates must reflect the cost of operating the utility.
Article XIII D of the California Constitution defines the requirements for conducting rate studies including the fee or charge method of calculation proposed to be imposed upon each parcel.
Recent court decisions require rate study reports every five years.
The City does not have the technical expertise to prepare the study in a timely and cost-effective manner for completion in 2024.
The use of the RFP process is appropriate for this Professional Services Contract because it relies on the evaluation of professional qualifications and performance as the basis for consultant selection. The use of these criteria helps ensure the selection of a consultant that will provide the highest quality professional service, which is in the public interest.
It is in the public interest to have well established rates to ensure proper funding for the operation of the Wastewater Utility and Stormwater Utility. A qualification and performance-based consultant selection will ensure the ratepayers are paying appropriate rates for the services provided.
The City negotiated a contract following the solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.
A Professional Service contract (Exhibit 1 to the Resolution) with HDR Engineering, Inc. of Folsom, California for the Wastewater and Stormwater Utilities Cost of Service Rate Studies, Project No. PUR 23027 in the amount of $334,995 is hereby awarded. //
//
//
//
//
//
//
//
//
//
//
//
The City Manager or designee is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED August 22, 2023 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton