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SR 07-23-2019 3F City Council Report City Council Meeting: July 23, 2019 Agenda Item: 3.F 1 of 5 To: Mayor and City Council From: Susan Cline, Director, Public Works, Water Resources Subject: Award Request for Proposal and enter into a Professional Services Agreement with Dudek for the Preparation of a Groundwater Sustainability Plan and Approve First Amendment for the Santa Monica Basin Groundwater Sustainability Agency Memorandum of Understanding Recommended Action Staff recommends that the City Council: 1. Award RFP#161 for the Preparation of a Santa Monica Basin Groundwater Sustainability Agency (Agency) Groundwater Sustainability Plan (GSP) to Dudek, a California-based company, for compliance with the California State Sustainable Groundwater Management Act (Act) for the Water Resources Division; 2. Authorize the City Manager to negotiate and execute an agreement with Dudek, in an amount not to exceed $1,300,000 (including a $149,000 contingency) for two years with future year funding contingent on Council budget approval. 3. Approve the First Amendment to the Memorandum of Understanding (MOU) (Attachment A) for the Agency that confirms Dudek as the consultant and a 50:50 cost-sharing agreement with the City of Los Angeles Department of Water and Power (LADWP) for the $1,300,000 contract. The City and LADWP will each pay $650,000 for this project. 4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. Summary The Water Resources Division is charged with providing a safe, sustainable water supply to Santa Monica’s 93,000 residents and 2,741 commercial and inst itutional customers. The City of Santa Monica (City) is on track to achieve water self-sufficiency by 2023, leading to long-term cost benefits for ratepayers and establishment of a diverse and drought-resilient local water supply. Currently, the local water supply is approximately 70% groundwater extracted from the Santa Monica Groundwater Basin (Basin). 2 of 5 The City is one of five member agencies of the Santa Monica Basin Groundwater Sustainability Agency (Agency). The Agency’s formation was mandated by the Sustainable Groundwater Management Act (Act) of 2014, which was enacted by the State of California to ensure that groundwater across the state is managed sustainably. The Agency is responsible for developing a Groundwater Sustainability Plan (GSP). The GSP will be the first comprehensive groundwater assessment and management plan specific to the Santa Monica Basin. As the lead entity for the Agency, the City would hire a consultant to coordinate, prepare and submit a final GSP by the regulatory deadline of January 31, 2022. Staff recommends Dudek as the best qualified firm to provide GSP services for the project over a two-year period with options to renew as needed. Discussion The Agency comprises five local government agencies with boundaries that are ful ly or partially overlying the Basin. The cities of Santa Monica, Beverly Hills, Los Angeles, Culver City, and the County of Los Angeles entered into a Memorandum of Understanding (MOU) in 2017 to cooperatively manage the Basin in a responsible and sustainable manner, which includes the preparation of a GSP. The First Amendment to this MOU documents the selection of a GSP consultant and the revised cost-sharing agreement with the member agencies. The Agency members have designated the City as the coordinating entity since the City is the sole extractor of groundwater in the basin for drinking water purposes and the City has prepared extensive technical analysis supporting the recently updated Sustainable Water Master Plan, which documents the City’s goal to achieve water self-sufficiency by 2023. The City, as the sole drinking water producer, and the City of Los Angeles, as the largest owner of land within the basin, will equally share the costs for the GSP consultant contract. As part of GSP development, the Act requires the Agency to understand the basin context, basin conditions, hydrogeological conceptual model, and the basin water budget, as well as provide a description of the sustainable management criteria for the basin, conduct stakeholder engagement, monitor network planning, and identify project and management plans. 3 of 5 The Act requires the Agency to submit a GSP by January 31, 2022. The Agency intends to prepare one GSP covering the entire Santa Monica Basin. The City will be responsible for coordinating with the four other member agencies to provide the GSP consultant with all available groundwater management documents and data. The GSP scope of work is as follows: • Regulatory notification • Project management • Interested party and stakeholder engagement • GSP development • Preparation of a GSP basin groundwater model • Supplemental studies and analyses • Preparation of work plan for GSP implementation • As-needed technical assistance Past Council Actions May 8, 2017 (Attachment B) MOU for the Formation of the Santa Monica Basin Groundwater Sustainability Agency Vendor Selection RFP Data RFP Posting Date RFP Posted on RFP Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 3/5/2018 City’s Online Bidding Site Santa Monica Daily Press 105 4 4/23/2019 RFPs Received Selection Criteria Advisian Municipal Code SMMC 2.24.190 Dudek Evaluation Criteria Past experience, technical competence, ability to meet project requirements, adequacy of response, records of past performance, and demonstrated thoroughness in work approach. Larry Walker ICF Justification to Award A three-person committee composed of staff from the Water Resources Division of the 4 of 5 Public Works Department evaluated the proposals based on price, previous experience, technical competence, ability to complete the work plan on schedule, cost of services, and past record of performance (references). Based on the evaluations, staff conducted interviews with the top two firms, Dudek and ICF. The committee recommends Dudek as the best qualified firm. Dudek has the most direct technical experience with preparing GSPs, a cohesive team that has worked together in a similar capacity for several other agencies, and the most comprehensive understanding of the project and proposed timeline that would ensure the project is completed on time and the City, along with the Agency, achieves full regulatory compliance with the Act. Financial Impacts and Budget Actions Staff seeks approval to enter into a cost-sharing agreement with LADWP per the First Amendment to the existing MOU to obtain the matching contribution of $650,000. If approved, staff recommends the following budget changes in the Water Fund. FY 2019-20 Cost-Sharing Agreement Budget Changes Establish Revenue Budget Appropriate Funds Account Number(s) Amount Account Number(s) Amount 50500001.415910 $650,000 C5006140.689000 $650,000 Total $650,000 Total $650,000 Staff seeks authority to approve funding from the Water Fund to award a Professional Services Agreement with Dudek to provide GSP services for the Agency. Agreement Request Request Amount FY 2019-20 Budget CIP Account # Total Contract Amount $1,050,000 C5006140.689000 $1,300,000 $1,050,000 Total $1,300,000 Future year funding is contingent on Council budget approval. 5 of 5 Prepared By: Lisette Gold, Environmental Remediation Coordinator Approved Forwarded to Council Attachments: A. First Amendment - Santa Monica Basin Groundwater Sustainability Agency MOU B. Santa Monica Basin Groundwater Sustainability Agency MOU - 2017 Signed Document C. Dudek Oaks Initiative Disclosure Form FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING FOR THE FORMATION OF THE SANTA MONICA BASIN GROUNDWATER SUSTAINABILITY AGENCY This First Amendment to Memorandum of Understanding for the formation of the Santa Monica Basin Groundwater Sustainability Agency (First Amendment), dated _____________, 2019 for reference, is made and entered by and among the City of Santa Monica (Santa Monica), a municipal corporation, the City of Los Angele s, by and through its Department of Water and Power (LADWP), the City of Beverly Hills (Beverly Hills), the City of Culver City (Culver City), and the County of Los Angeles (County), each a “Party” and, collectively, the “Parties.” WHEREAS, the Sustainable Groundwater Management Act (SGMA), as enacted on September 16, 2014, and codified in California Water Code Section 10720 et seq., is intended to enhance local and sustainable management of groundwater; and WHEREAS, SGMA authorizes local public agencies that have water supply, water management, or land use responsibilities within a groundwater basin to form a Groundwater Sustainability Agency (GSA) to implement SGMA’s provisions within that basin; and WHEREAS, each Party is a local public agency that has water supply, water management, or land use responsibilities within the Santa Monica Basin (Basin Number 4-11.01 DWR Bulletin 118) (Santa Monica Basin); and WHEREAS, the Santa Monica Basin has been designated as a medium priority basin; and WHEREAS, the Parties desire to collectively manage the Santa Monica Basin within their jurisdictional boundaries; and WHEREAS, the Parties intend to work collaboratively with each other and other interested parties to develop and implement a single Groundwater Sustainability Plan (GSP) to manage groundwater sustainably and cost-effectively in the Santa Monica Basin pursuant to the requirements of SGMA; and WHEREAS, the Parties have entered into that certain Memorandum of Understanding for the Formation of the Santa Monica Basin Groundwater Sustainability Agency (MOU) in accordance with California Water Code section 10723.6; and WHEREAS, the Parties desire to authorize Santa Monica to develop the GSP in accordance with the terms and conditions of this First Amendment ; and NOW, THEREFORE, incorporating the above recitals herein and exhibit attached, it is mutually understood and agreed by the Parties as follows: 1. AUTHORIZATION TO DEVELOP THE GSP. In addition to any duties assigned to Santa Monica under the MOU, Santa Monica shall develop the GSP, including, more specifically, the following tasks: (i) The execution of a professional services agreement (PSA) with Dudek (“Consultant”). (ii) Sole administration of the PSA, including payment to Consultant and exercise of all contract remedies set forth therein. (iii) Ensuring timely conformance of the GSP in accordance with SGMA. (iv) Prior to initiating the development of the GSP, providing required notice to the Department of Water Resources in accordance with California Water Code section 10727.8 2. COORDINATION. Each Party hereby agrees to coordinate with Santa Monica during the development of the GSP, including, more specifically, performing the following tasks: (i) Providing timely public notices within each Party’s respective jurisdiction in accordance with California Water Code section 10727.8 and title 23, section 353.6 of the California Code of Regulations. (ii) Within thirty (30) days of a written request by Santa Monica, providing all unprivileged information, data, or documentation within the custody of each Party’s respective jurisdiction to Santa Monica, to ensure that the contents of the GSP conforms with SGMA requirements for contents of the GSP. (iii) Assuming responsibility for obtaining required approvals for each Party’s adoption of the GSP. 3. NO WAIVER OF RIGHTS TO ADOPT THE GSP. Nothing herein shall be construed to waive, modify, or void the requirement in the MOU for unanimous consent of the Parties to adopt the GSP. 4. PAYMENT OF COSTS FOR GSP. The costs of developing the GSP shall be allocated as follows: (i) Santa Monica and LADWP shall share equally (50:50) in the responsibility for payment to Consultant in accordance with the PSA. Culver City, Beverly Hills, and the County shall have no obligation to pay Consultant’s costs. Santa Monica shall make all payme nts to Consultant in accordance with the PSA, and invoice LADWP on a semi-annual basis on or about February 1 and August 1 for payments made to Consultant during the periods (July 1 – December 31) and (January 1-June 30), respectively. LADWP shall reimburse Santa Monica for 50% of undisputed costs paid by Santa Monica to Consultant in accordance with the PSA, within sixty (60) days of receiving an invoice from Santa Monica. In the event that LADWP disputes any costs of services provided under the PSA, LADWP shall provide written notice to Santa Monica explaining the basis for the dispute, and LADWP and Santa Monica shall meet and confer in good faith to resolve such dispute within sixty (60) days of the notice issued by LADWP. (ii) Except as provided in subparagraph (i), above, each Party shall bear its own costs for development of the GSP. 5. DESIGNATION OF WATER ADVISORY COMMITTEE. In accordance with Water Code section 10727.8(a), the Parties hereby authorize Santa Monica to consult with the Santa Monica Water Advisory Committee for the purposes of developing the GSP. 6. TERM. This First Amendment shall become effective upon each Party’s execution and shall terminate concurrently with the MOU. 7. MODIFICATION TO MOU. Except as expressly modified by this First Amendment, all other terms and conditions of the MOU shall be and remain in full force and effect. [signature pages follow] IN WITNESS WHEREOF, each Party hereby has caused this MOU to be executed as of the date and year written below: DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES BY BOARD OF WATER AND POWER COMMISSIONERS By: _____________________________________ DAVID H. WRIGHT General Manager Date: _____________________________________ And: _____________________________________ BARBARA E. MOSCHOS Secretary IN WITNESS WHEREOF, each Party hereby has caused this MOU to be executed as of the date and year written below: CITY OF SANTA MONICA ATTEST: a municipal corporation __________________________ By: ________________________ DENISE ANDERSON-WARREN RICK COLE City Clerk City Manager APPROVED AS TO FORM: __________________________ LANE DILG City Attorney IN WITNESS WHEREOF, each Party hereby has caused this MOU to be executed as of the date and year written below: CITY OF BEVERLY HILLS By: ________________________ SHANA EPSTEIN Public Works Director APPROVED AS TO FORM: __________________________ JIM MARKMAN City Attorney IN WITNESS WHEREOF, each Party hereby has caused this MOU to be executed as of the date and year written below: CITY OF CULVER CITY ATTEST: __________________________ By: ________________________ JEREMY GREEN JOHN M. NACHBAR City Clerk City Manager APPROVED AS TO FORM: __________________________ CAROL SCHWAB City Attorney IN WITNESS WHEREOF, each Party hereby has caused this MOU to be executed as of the date and year written below: COUNTY OF LOS ANGELES APPROVED AS TO FORM: __________________________ By: __________________________ MARY C. WICKHAM AMY J. BODEK, AICP County Counsel Director of Regional Planning Dudek  2019 corporate officer information:    Chairman/Chief Executive Officer:                          Frank J. Dudek  President:                                                                    Joe Monaco  Secretary/General Counsel:                                     Amy Paul  Treasurer/Chief Financial Officer:                           Christine Moore  Vice president/Engineering:                                    Robert Ohlund  Vice President/Hydrogeology                                  Peter Quinlan  Vice President/Environmental:                               Eric Wilson  Assistant Secretary:                                                   Emily Hart  Assistant Secretary:                                                   D. Michael Metts  Chief Information Officer:                                        Brian Nordmann    REFERENCE: Agreement No. 10884 (CCS) & MOU No. 10885 (CCS)