sr-081010-1g (2)City Council Meeting: August 10, 2010
Agenda item: ~-~
To: Mayor and City Council
From: Susan Cline, Acting Director of Public Works
Subject: Contract Modification for Water and Wastewater Asset Management Plan
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute
a no-cost First Modification for Agreement No. 9120 with GHD, Inc., an Australia-based
global company, for continuous asset management improvements. This modification will
address a change in scope and term only.
Executive Summary
On September 22. 2009, Council approved a contract with GHD, Inc. for the development of
a Linear Asset Management Plan (AMP) that provided organizational assessment of the
Water Resources Division, identified required levels of service, inventoried water and
wastewater assets, assessed the risk of possible infrastructure failure, and evaluated future
funding needs of the water and wastewater infrastructure. Staff recommends a modification
of the scope of work outlined in Agreement No. 9120 with GHD, Inc. to provide additional
services that will further develop the AMP. The proposed services include the development
and implementation of an improved performance-based management system, development
of a capital improvement program that follows asset management principles, and training and
support of the asset management analytical model.
The First Modification will comprise a modified scope of work and an extension of the term to
June 30, 2011.
Background
On September 22. 2009, Council approved a contract with GHD, Inc. for the development of
an Asset Management Plan (AI,V1P) for water and wastewater linear assets. The first phase of
the AMP presents the tools and methodologies to carry forward business practices that
promote continuous improvement, ensure the long-term sustainability of the water and
wastewater systems, and provide required levels of service in the most cost effective and
efficient manner. The benefits of an AMP for water and wastewater systems include:
• Improved operations and maintenance practices
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• Improved knowledge asset locations and conditions
• Greater ability to plan and fund future repairs and replacements
• Identification of capital improvement projects that meet the true needs of the system
Discussion
The AMP developed in FY2009-10 provides a solid foundation for continuous improvement of
the water and wastewater systems. The AMP development effort provided an organizational
assessment of the Water Resources Division, identified required levels of service, inventoried
water and wastewater assets, assessed the risk of possible infrastructure failure, and
evaluated future funding needs of the water and wastewater infrastructure to align with best
practice strategies for effective asset management. Continuing to build on the progress and
momentum of the AMP development is important and staff recommends continuing GHD's
service to further develop critical tasks and provide support that will ensure a successful
implementation of the AMP. Specifically, the following services have been identified for
completion in FY 2010-11:
• Develop and implement an improved performance-based management system to
establish performance measures and targets, develop benchmark tests, and define
improvement strategies.
• Develop a capital improvement program for water and wastewater infrastructure to
incorporate tools such as business risk assessment and life cycle cost analysis that
were developed in the AMP and define the best use of limited budget for replacement
and/or rehabilitation projects.
• Provide support for the asset management model support that includes the delivery
and use of an analytic model called TEAMPIan (Total Enterprise Asset Management
Plan). Provide ongoing support in the application and refinement of future
infrastructure needs through utilization of TEAMPIan.
The original scope of work outlined in the original contract of $687,680 was accomplished
under budget with a savings of $180,000 that can be applied towards the additional scope of
work.
Consultant Selection
In fall of 2008, the City issued a Request for Proposals (RFP) to develop an AMP for water
and wastewater systems. The RFP was posted on the City's web site and the City received a
total of 11 proposals. Nine firms were invited to present and interview with an evaluation
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panel comprised of staff from the Public Works, Information Systems, and Finance
Departments. GHD, Inc.. was selected based on price, technical competence, staffing
capability to meet project timeliness, quality control, and cost control and reporting. Other
firms that participated in the evaluation process included Black and Veatch Corporation,
Brown and Caldwell,. Carollo Engineers, CH2MHill, MWH Global, Nexgen, RMC Water and
Environment, and Willdan.
GHD, Inc. is an international management consultant firm with branch offices throughout the
United States, including Irvine, California. GHD has extensive. experience in water and
wastewater asset management that includes the recently-completed comprehensive asset
management program for the Orange County Sanitation District.
Financial Impacts & Budget Actions
There is no budget/financial impact in this First Modification for Agreement No. 9120. Only
the scope and term will be modified.
Prepared by: Gil Borboa, P.E., Water Resources Manager
Approved: Forwarded to Council:
c.t ---C
Sus n Cline Rod Gould
Ac ing Director of Public Works City Manager
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Reference Amendment to
Contract No. 9120 (CCS).