REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with West Yost & Associates, Inc. with a Maximum Compensation of $949,502 to Update the City’s Water Supply Master Plan and to Approve the Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City’s Water Master Plan helps guide the Water & Sewer Utilities Department (Department) in its effort to continue to meet the water needs of Santa Clara. Since the Water Master Plan was last updated in 2002, the City has experienced significant growth in housing and redevelopment and continues to face challenges in water supply due to severe droughts.
The Department is seeking to update the 2002 Water Master Plan to adopt an innovative and sustainable plan that encompasses a One Water long-term plan that addresses drought and climate resiliency. The “One Water” approach envisions managing all water in an integrated, comprehensive, and sustainable manner that considers all water resources from ground water, treated water, wastewater, recycled water, dry weather runoff and stormwater that improves water resiliency to climate change.
Additionally, an updated Water Master Plan will address business efficiencies to minimize asset failures through optimized designs and management practices. This will include capital improvement planning to support the implementation of the updated Water Master Plan including the development of an Asset Management Program to ensure existing infrastructure replacements support stewardship of the City’s long-term drinking water supply strategy.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Statement of Qualifications (SOQ) was conducted, with the award recommendation based on “best value”.
Staff initially published the SOQ for the One Water Santa Clara - Sustainable Water Supply Master Plan Update in December 2019 and again in October 2022. Staff posted the SOQ on the City’s e-procurement system and reached out to firms in the water industry. However, only one proposal was received in the 2019 procurement, which was subsequently withdrawn, and no proposals were received in the 2022 procurement.
In January 2023, staff re-published the SOQ on the City’s e-procurement system and invited three firms to participate. Two proposals were received from EKI Environment & Water, Inc. (EKI) and West Yost & Associates, Inc. (West Yost).
A three-member evaluation team independently evaluated and scored the proposals against the criteria and weights published in the SOQ. Both firms were then invited for oral interviews to introduce their proposed project team members and demonstrate their ability to meet the City’s requirements. Following oral presentations, the evaluation team determined that West Yost submitted the best value proposal. West Yost’s proposal was rated superior in the following key areas:
• Has over 30 years of experience in water supply and system planning.
• Has completed Water Master Plan Updates for neighboring cities such as Milpitas, San Bruno, and Menlo Park.
• Employs certified and registered professionals in various fields related to water resources, environmental, geology, hydrogeology, risk management, asset management, and condition assessment.
The proposed agreement with West Yost has a maximum compensation of $949,502, with milestone payments tied to the successful completion of key project deliverables. It includes a detailed scope of services with a breakdown of tasks, that includes the following:
• Task 1 - Project Management
• Task 2 - Data Collection
• Task 3 - Refinement of Water Demand Projection
• Task 4 - Update of Water System Evaluation Criteria
• Task 5 - Water System Capacity and Performance Evaluations
• Task 6 - Implementation Strategy Alternatives
• Task 7 - Development of Capital Improvement Plans
• Task 8 - Asset Management Plan
• Task 9 - Master Plan Report
• Task 10 - Water Supply Assessment
• Task 11 - Evaluation of Development Fees
• Task 12 - Asset Management for City Sewer Collection System
Approval of the recommendations will provide the City with an updated Water Supply Master Plan that encompasses:
• Resource planning efforts addressing drought and climate resilience.
• Integrated, comprehensive, and sustainable approach to all water resources from ground water, treated water, wastewater, recycled water, dry weather runoff and stormwater that improves water resiliency to climate change.
• Capital improvement planning including the development of an Asset Management Program to ensure existing infrastructure replacements to support the stewardship of the City’s long-term potable water supply strategy.
• An asset registry and hierarchy for the City’s sanitary sewer collections system.
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 Master Plan project is $949,502 and is recommended to be funded from Water Utility and Sewer Utility funds. The recommended budget amendment below appropriates $949,502 to the Asset Management Program project in the Water Utility Capital Fund. Of this amount, $168,118 is recommended to be transferred from the Recycled Water Capital Fund, $50,000 is recommended to be transferred from the Sewer Utility Fund, and $731,384 is recommended to be appropriated from the Water Utility Capital Fund unrestricted ending fund balance.
Budget Amendment
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Recycled Water Capital Fund |
|
|
|
|
Transfers To |
|
|
|
|
Water Utility Capital Fund |
$0 |
$168,118 |
$168,118 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$572,874 |
($168,118) |
$404,756 |
|
|
|
|
|
|
Sewer Utility Fund |
|
|
|
|
Transfers To |
|
|
|
|
Water Utility Capital Fund |
$0 |
$50,000 |
$50,000 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$6,154,980 |
($50,000) |
$6,104,980 |
|
Water Utility Capital Fund |
|
|
|
|
Transfers From |
|
|
|
|
Recycled Water Capital Fund |
$0 |
$168,118 |
$168,118 |
|
Sewer Utility Fund |
$0 |
$50,000 |
$50,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Asset Management Program project |
$347,636 |
$949,502 |
$1,297,138 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$8,740,570 |
($731,384) |
$8,009,186 |
COORDINATION
This report has been coordinated with the Finance 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute an agreement with West Yost & Associates, Inc. (Agreement), in substantially the form attached to this Report to Council and subject to the review and approval of the City Attorney, to update the City’s Water Supply Master Plan, for a term starting on or around September 1, 2023 and ending on or around June 30, 2028, with a maximum compensation not-to-exceed $949,502, subject to the appropriation of funds;
2. Authorize the City Manager to (a) take any actions as necessary to implement and administer the Agreement and (b) extend the term of the Agreement as required to complete the services required to update the Water Master Plan, provided that the maximum compensation is not exceeded;
3. Authorize the Director of Water & Sewer Utilities to negotiate and execute amendments to the Agreement to add, modify or delete services consistent with the Agreement’s scope of services, provided that the maximum compensation is not exceeded; and
4. Approve the following FY 2023/24 budget amendments:
a. In the Recycled Water Capital Fund, establish a transfer to the Water Utility Capital Fund and reduce the unrestricted ending fund balance by $168,118 (five affirmative Council votes required for the use of unused balances);
b. In the Sewer Utility Fund, establish a transfer to the Water Utility Capital Fund and reduce the unrestricted ending fund balance by $50,000 (five affirmative Council votes required for the use of unused balances); and
c. In the Water Utility Capital Fund, recognize a transfer of $168,118 from the Recycled Water Capital Fund, recognize a transfer of $50,000 from the Sewer Utility Fund, reduce the unrestricted ending fund balance by $731,384, and increase the Asset Management Program project by $949,502 (five affirmative Council votes required to appropriate additional revenue and for the use of unused balances).
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities Department
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Agreement with West Yost & Associates, Inc.