SR-07-08-2014-3DCity Council Meeting: July 8, 2014
Agenda Item: 3-D
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Second Modification of Agreement with Kennedy /Jenks for the
Development of a Sustainable Water Master Plan
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a second modification to professional services agreement 9563 (CCS) in the
amount of $100,000 with Kennedy /Jenks, a California -based company, to provide
professional services for the development of the Sustainable Water Master Plan. This
will result in an amended three -year agreement with a new total amount not to exceed
$971,856.
Executive Summary
On March 27 2012, Council approved a professional services agreement with
Kennedy /Jenks to provide professional services for the development of a Sustainable
Water Master Plan. Additional services are needed to complete the rate and revenue
analyses for the Water Fund, finalize the Sustainable Water Mater Plan, and provide
public outreach regarding any change in the rate structure. To date the City has paid
Kennedy /Jenks $730,118 of the original approved contract amount of $871,856 for
services provided. Staff anticipates an additional $230,000 is required to complete the
project. Staff recommends a second modification in the amount of $100,000 with
Kennedy /Jenks, for a total amount not to exceed $971,856 over a three -year period.
Background
On January 25, 2011, Council directed staff to prepare a study session to examine the
City's water supply and to develop a plan to achieve 100% self- sufficiency on local
water sources by 2020. At a study session conducted on March 8, 2011, staff proposed
preparing a Sustainable Water Master Plan (SWMP) to serve as a strategic review and
forecast of the City's water supply and demand as well as an "umbrella" plan to
amalgamate existing strategies. The plan envisioned maximizing the use and
development
of local
groundwater
resources at a sustainable level,
increasing water
conservation
efforts,
capturing and
using rainwater and dry- weather
runoff, reuse of
1
greywater, exploring enhancements in water recycling efforts, and reuse of wastewater
and other innovations. Council discussed the development of the plan and approved
moving forward with the plan development.
Consultant Selection
In October 2011, a Request for Proposals for the development of a Sustainable Water
Master Plan was posted on the City's online bidding website. Upon reviewing the
proposals and meeting with the teams, staff recommended Kennedy /Jenks Consultants
as the most qualified team to conduct the study based on their proposal, experience,
competitive cost, references, and qualifications.
On March 27, 2012, Council approved a professional services agreement with
Kennedy /Jenks to provide professional services for the development of a Sustainable
Water Master Plan.
On May 14, 2013, staff provided an update on the SWMP and presented options for
Council to consider regarding the proposed conservation and supply programs
necessary to achieve the SWMP goal of self- sufficiency by 2020. At the same meeting
Council also directed staff to proceed with the water and wastewater rate analysis in
order to determine the potential rate adjustments needed to support the SWMP.
Kennedy /Jenks has been performing the rate analysis concurrent with the development
of the plan.
On May 24, 2013, a first modification was executed to professional services agreement
9563 (CCS) to extend the term of the contract to June 30, 2014. No additional funding
was added to the Kennedy /Jenks contract at that time.
Discussion
Significant effort has been conducted by Kennedy /Jenks on various alternative rate
scenarios at the request of staff and the SWMP Advisory Committee, exceeding the
original estimate of funding needed. Additionally, the original plan included potential
6
adoption of new rates on July 1, 2014. It is now envisioned that Council will consider
rate adjustments in the fall of 2014, with adopted rate adjustments, if approved, taking
effect January 1, 2015. Accordingly, an extension of the term of the agreement to June
30, 2015, for a total term of three years is appropriate. This proposed modification
would allow for efforts to finalize a rate structure to achieve the Sustainable Water
Master Plan and educate and inform the City's water customers of the proposed
changes in rates.
Of the original contract amount of $871,856 approved by Council, Kennedy /Jenks has
provided professional services in the development of the SWMP in the amount of
$730,118 to date. Staff anticipates an additional $230,000 is necessary to complete the
rate structure analyses for water and wastewater, and to provide public outreach to
customers regarding this change in rate structure. Staff recommends a second
modification in the amount of $100,000 with Kennedy /Jenks, for a total of $971,856 over
a three -year period, for the completion of the project. The second modification will add
the following tasks:
Task Cost
Complete Demand Management Plan $ 3,000
Complete Distribution System Evaluation $ 42,000
Complete Master Plan Report $ 25,000
Complete Rate Study $ $30,000
Total $ 100,000
3
Financial Impacts & Budget Actions
The agreement modification to be awarded to Kennedy /Jenks is $100,000, for an
amended agreement total not to exceed $971,856 over a three year period. Funds are
available in the FY 2014 -15 budget in division 25671; agreement will be charged to
account 25671.555010.
Prepared by: Gil Borboa, P.E. Water Resources Manager
Approved:
_.. }
Martin Pastucha
Director of Public Works
Forwarded to Council:
Rod Gould
City Manager
13