REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with West Yost & Associates, Inc. for Preparation of the Water Supply Master Plan and the 2025 Urban Water Management Plan and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On September 12, 2023 (RTC# 23-834), City Council approved an agreement with West Yost & Associates, Inc. (West Yost) to update the City’s Water Supply Master Plan (WSMP) and provide additional services related to the City’s adherence to water management rules and regulations, including preparation of the Urban Water Management Plan (UWMP). The agreement was awarded through a competitive procurement process in accordance with the City’s purchasing policies and was approved for a five-year term beginning on September 20, 2023, and ending on June 30, 2028, with a maximum compensation not to exceed $949,502.
Under this agreement, West Yost is currently updating the WSMP, which is expected to be completed in Fall 2025. The WSMP will serve as the guiding document for the City’s long-term water supply planning, infrastructure planning, demand forecasting, and water source management to ensure a consistent, safe, and reliable water supply for City customers.
The technical data and analysis from the WSMP will be used to develop the City’s 2025 UMWP, which the City is required to prepare and adopt under the California Urban Water Management Planning Act. As an urban water supplier serving more than 3,000 customers and delivering over 3,000 acre-feet annually, the City is required to update its UWMP every five years. The UWMP must address specific content as directed by the California Department of Water Resources (DWR), with a particular focus on urban water shortage contingency analyses and the development of a reliable water management action plan that addresses future water demands, changing water supply conditions, and the impact of new developments on the City. The City’s 2025 UWMP must be submitted to DWR by July 1, 2026.
DISCUSSION
Although the DWR has not yet released formal guidance for the 2025 UWMP update, staff anticipate significant updates will be required. Timely development of the UWMP is critical to maintaining regulatory compliance.
To support this effort, staff is requesting City Council authorization to execute Amendment No. 1 to the agreement with West Yost for services related to the preparation of the 2025 UWMP. These services will build directly on the ongoing WSMP update. Key elements anticipated in the 2025 UWMP include:
• Water Supply Reliability Assessment - A water supply and demand assessment which compares the total water supply sources available to the City with the long-term total projected water use over the next 25 years, in five-year increments, for a normal water year, a single dry water year, and a drought lasting five consecutive water years.
• Drought Risk Assessment - An assessment of the City’s water supply reliability based on a five-year consecutive dry year scenario.
• Water Use Target Compliance - Compliance with previously adopted 2020 per capita water use targets in accordance with SBX7-7.
• Water Loss Quantification - A summary report quantifying the City’s system water loss for the years 2021 to 2025 and indicating compliance with the City’s distribution loss standard as established by the State Water Resources Control Board.
• Groundwater Management Compliance - Status update on Sustainable Groundwater Management Act (SGMA) compliance activities.
• Water Shortage Contingency Plan - Since the completion of the 2020 UWMP, the State has experienced another multi-year drought event. West Yost will work to refine and update the WSCP.
Under Amendment No. 1, West Yost will prepare a strategic roadmap, facilitate a comprehensive data collection and review process, coordinate with City staff, support community feedback, develop draft and final 2025 UWMP documents, and assist with required submission(s) to DWR. These services will be provided for a fixed fee of $107,880, based on West Yost’s current hourly rates and the estimated effort.
To accomplish these tasks, Staff recommends approval of Amendment No. 1 to increase the maximum compensation of the agreement from $949,502 to $1,057,382.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The cost of the amendment is $107,880 and is recommended to be funded in the Water Utility fund. The recommended budget amendment below appropriates $107,880 to the capital outlay appropriation.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Utility Fund |
|
|
|
|
Expenditures |
|
|
|
|
Capital Outlay |
$153,000 |
$107,880 |
$260,880 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$4,132,906 |
($107,880) |
$4,025,026 |
COORDINATION
This report has been coordinated with the Water & Sewer Utilities Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 1 to the agreement with West Yost & Associates, Inc. This amendment increases compensation by $107,880, resulting in a revised not-to-exceed maximum compensation of $ 1,165,262. The additional funds will provide services related to the preparation of the City’s 2025 Urban Water Management Plan (UWMP), subject to the appropriation of funds;
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the agreement. These actions may include negotiating and executing future amendments to: (i) increase the maximum compensation by up to $50,000, for a revised not-to-exceed amount of $1,107,382, to address unanticipated requirements that may arise during the term of the agreement; (ii) add or delete services consistent with the scope of the agreement; (iii) adjust future rates based on market conditions; and (iv) make de minimis changes. All actions are subject to appropriation of funds and review and approval as to form by the City Attorney; and
3. Approve the FY 2025/26 budget amendment in the Water Utility Fund to increase the capital outlay appropriation in the amount of $107,880 and decrease the unrestricted ending fund balance in the amount of $107,880 (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: John Ramirez, Director, Water & Sewer Utilities
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Amendment No. 1 to the Agreement with West Yost & Associates, Inc.
2. RTC 23-834 and Original Agreement